Founder Securities(SH:601901)2018-10-30 16:00Financial Performance - Net profit attributable to shareholders for the first nine months of 2018 was CNY 454.56 million, a decrease of 65.84% year-on-year[7]. - Operating revenue for the first nine months of 2018 was CNY 3.71 billion, down 21.31% from the same period in 2017[7]. - Basic earnings per share for the first nine months of 2018 were CNY 0.06, a decrease of 62.50% year-on-year[7]. - The weighted average return on equity decreased by 2.45 percentage points to 1.21% for the first nine months of 2018[7]. - As of September 30, 2018, the net profit decreased by 64.35% to RMB 474,479,553.72 compared to RMB 1,330,869,698.52 in the same period of 2017[15]. - The total profit decreased by 66.15% to RMB 592,415,439.79 from RMB 1,749,943,406.87 year-on-year[15]. - The company reported a 71.16% decline in net interest income, dropping to RMB 250,482,011.43 from RMB 868,459,146.44[15]. - Net profit for the first nine months of 2018 was ¥474.48 million, down from ¥1.33 billion in the same period of 2017, a decrease of about 64.5%[44]. - Operating income for Q3 2018 was ¥1.40 billion, a decline of 19.7% compared to ¥1.74 billion in Q3 2017[44]. - Net commission and fee income decreased to ¥686.55 million from ¥1.09 billion year-over-year, a drop of approximately 37%[44]. - Total comprehensive income for Q3 2018 was ¥483,691,007.59, compared to ¥761,027,701.96 in Q3 2017, indicating a decrease of approximately 36.5%[49]. Cash Flow and Assets - The net cash flow from operating activities for the first nine months of 2018 was negative CNY 7.29 billion, a decline of 253.21% compared to the previous year[7]. - The company’s available-for-sale financial assets increased by 67.26% to RMB 43,379,307,544.21 from RMB 25,934,888,641.44[15]. - The company’s liabilities from bonds payable increased by 32.95% to RMB 35,192,900,000.00 from RMB 26,470,160,000.00[15]. - The total cash inflow from financing activities was 5,087,273,455.19 RMB, compared to 6,509,202,720.88 RMB in the previous year[56]. - The net cash flow from operating activities for Q3 2018 was -7,294,235,271.16 RMB, a significant decline compared to the previous year's net cash flow of 4,760,911,577.19 RMB[53]. - Cash and cash equivalents at the end of Q3 2018 stood at 33,246,713,652.76 RMB, down from 35,480,061,092.69 RMB at the end of Q3 2017[53]. - The company reported a significant increase in cash paid for other operating activities, which rose to 22,222,867,155.23 RMB from 3,208,239,027.30 RMB year-over-year[53]. Shareholder Information - The total number of shareholders as of the report date was 208,655[10]. - The largest shareholder, Peking University Founder Group, held 27.75% of the shares, with 1.11 billion shares pledged[11]. - The company approved a share repurchase plan, allowing for the buyback of 12 million to 30 million A-shares with a budget of up to ¥100 million to align the stock price with its intrinsic value[25]. Legal and Governance - The company is involved in ongoing litigation regarding shareholder disputes, with new claims being added against a major shareholder for unfulfilled commitments related to mergers and acquisitions[23]. - The company has not yet received formal communication regarding a court ruling that could positively impact its financial status if funds are recovered[25]. - The company’s board of directors has confirmed that all decisions regarding asset impairment provisions comply with legal regulations and do not harm the interests of minority shareholders[22]. - The company is actively monitoring legal proceedings that may affect its financial health and is prepared to act on any favorable outcomes[25]. - The company appointed Mr. Shi Hua as the new chairman and legal representative, with the change officially registered on September 14, 2018[24]. Strategic Developments - The company has not disclosed any new product or technology developments, market expansion, or acquisition strategies in this report[6]. - The company completed a capital increase of RMB 400 million in its subsidiary, increasing its ownership from 90.62% to 92.44%[17]. - The company recognized an asset impairment provision for the first half of 2018, reflecting a prudent approach in accordance with accounting standards, which helps to accurately represent the financial condition and operating results[22]. - The company’s strategic development committees have been restructured under the new chairman to enhance risk control and strategic planning[24].