Founder Securities(SH:601901)2018-03-30 16:00Financial Performance - In 2017, the company's operating income was CNY 5,952,987,244.81, a decrease of 23.28% compared to CNY 7,759,738,629.42 in 2016[38]. - The net profit attributable to shareholders was CNY 1,452,957,913.42, down 43.45% from CNY 2,569,336,882.57 in the previous year[38]. - The total assets at the end of 2017 were CNY 148,336,261,482.59, a decrease of 2.63% from CNY 152,338,730,246.04 at the end of 2016[38]. - The total liabilities decreased by 5.17% to CNY 110,140,620,419.92 from CNY 116,141,885,796.65 in 2016[38]. - The company's equity attributable to shareholders increased by 5.64% to CNY 37,428,718,940.21 from CNY 35,429,196,381.73 in 2016[38]. - Basic earnings per share decreased by 41.94% to CNY 0.18 from CNY 0.31 in the previous year[39]. - Net profit fell by 43.75% to CNY 1,452,587,320.89 compared to CNY 2,582,322,310.91 in the previous year[46]. - Total operating revenue decreased by 23.28% to CNY 5,952,987,244.81 from CNY 7,759,738,629.42 in the previous year[45]. - The total operating revenue for 2017 was approximately 5.95 billion, a decrease of 23.28% compared to 2016's 7.76 billion[104]. - The operating profit for 2017 was approximately 1.69 billion, down 46.24% from 3.15 billion in 2016[107]. Capital and Dividends - The registered capital of Founder Securities remained at CNY 8,232,101,395 as of December 31, 2017, unchanged from the previous year[13]. - The company plans to distribute a cash dividend of CNY 0.10 per share, totaling CNY 82,321,013.95, based on the total share capital as of the end of 2017[4]. - The total undistributed profits for the year will be used to supplement the company's net capital to ensure the smooth implementation of the 2016-2020 strategic plan[169][171]. - The company did not distribute cash dividends for the year 2016, and the cash dividend for 2015 was 0.90 RMB per 10 shares, amounting to 740,889,125.55 RMB, which was 18.23% of the net profit[170]. Risk Management and Compliance - The company has disclosed potential risks in its future development in the report, which investors should be aware of[5]. - The company has enhanced its compliance and risk management capabilities, ensuring strict adherence to regulatory requirements and improving overall risk management systems[71]. - The company emphasizes a robust risk management culture, ensuring that every employee is aware of their responsibilities regarding operational risk management[167]. - The company has established effective internal control mechanisms, including clear authorization and approval processes, and emergency response mechanisms for major incidents[167]. - The company recognizes credit risk as a significant concern, particularly in credit business and investment products, and has implemented various risk control measures[152]. Business Operations and Strategy - Founder Securities has a comprehensive range of business qualifications, including securities brokerage, investment consulting, and asset management[16]. - The company has established a clear strategic vision aiming to become a large comprehensive securities firm with balanced development across various businesses by 2020[65]. - The company is in a critical phase of transformation and enhancement in its wealth management, institutional business, and investment-related operations[169]. - The company is focusing on optimizing asset allocation and enhancing investment capabilities, particularly in capital intermediary services[150]. Asset Management and Financial Products - The asset management business net income increased by 69.20% to CNY 290,109,666.92 from CNY 171,463,261.04 in the previous year[45]. - The total entrusted asset scale reached 299.104 billion CNY, a year-on-year growth of 64.39%, with the number of existing products increasing by 72.24% to 731[95]. - The company achieved a peak product holding scale of 34.5 billion, with bank wealth management products reaching a peak of 9.7 billion and cash management products at 5.9 billion during the reporting period[101]. - The total scale of financial products sold by the company was 392.9 billion, generating sales revenue of 35.79 million during the reporting period[101]. Legal and Regulatory Matters - The company has not faced any risks of suspension or termination of its listing status[186]. - The company is involved in a contract dispute with Dongying Zhongtuo Investment Co., with a claim amount of ¥13,016,711.05[192]. - The company is facing a contract dispute with Agricultural Bank of China Liaoning Branch, with a total claim amount of ¥140,717,612[189]. - The company is pursuing a debt transfer dispute with Aerospace Science and Industry Asset Management Co., with a claim amount of ¥362,309,700[191]. - The company is involved in a securities misrepresentation dispute with multiple investors, with a claim amount of ¥70,295,042.97[191]. Financial Position and Ratios - The company's total assets decreased by 2.63% to CNY 148,336,261,482.59 from CNY 152,338,730,246.04 in the previous year[44]. - The company's debt-to-asset ratio decreased by 0.85 percentage points to 69.36% from 70.21% in the previous year[39]. - The company's liquidity coverage ratio improved to 346.07% from 319.77% in the previous year[42]. - The company's net capital was 24.048 billion RMB, with a net capital to liability ratio of 43.03% and a net asset to liability ratio of 65.24%[114]. Changes in Accounting and Auditing - The company adopted new accounting standards effective from May 28, 2017, and June 12, 2017, which impacted the financial reporting of non-current assets and government grants[181]. - The company appointed Xinyong Zhonghe Accounting Firm as the new auditor for 2017, with a fee not exceeding RMB 900,000, replacing Tianjian Accounting Firm which had served for 8 years[186]. - The adjustments in accounting policies did not affect the overall financial statements for the year[183].