SCS(SH:601555)2017-04-07 16:00Financial Performance - The company reported a total revenue of 1.5 billion in 2016, representing a year-over-year growth of 10%[46]. - In 2016, the company's operating revenue was approximately CNY 4.65 billion, a decrease of 31.99% compared to CNY 6.83 billion in 2015[50]. - The net profit attributable to shareholders was approximately CNY 1.50 billion, down 44.68% from CNY 2.71 billion in 2015[50]. - The gross margin improved to 40%, up from 35% in the previous year, reflecting better cost management[46]. - The company achieved a total revenue of 4.645 billion RMB in 2016, a decrease of 31.99% year-on-year[81]. - The net profit attributable to shareholders was 1.498 billion RMB, down 44.68% compared to the previous year[81]. - The company’s comprehensive income for 2016 was CNY 1,062,723,821.61, a decline of 61.61% from CNY 2,768,442,477.13 in 2015[63]. - The company’s capital reserve increased by 36.12% to CNY 11,656,642,848.19 from CNY 8,563,640,848.19 in 2015[63]. Capital and Investments - The company reported a total registered capital of CNY 3 billion at the end of the reporting period, an increase from CNY 2.7 billion at the end of the previous year[13]. - The company completed a non-public offering of 300 million shares, increasing its registered capital to 3 billion RMB on January 20, 2016[32]. - The company has a 70% stake in Dongwu Fund Management Co., Ltd., which was established in September 2004 with a registered capital of 100 million RMB[35]. - The company was approved to conduct internet securities business pilot on March 3, 2015[22]. - The company was authorized to conduct entrusted management of insurance funds on November 8, 2013[21]. - The company was granted permission to conduct counter market pilot on December 16, 2014[22]. - The company completed 49 bond issuances with a total financing amount of 50.147 billion RMB during the reporting period[96]. - The company successfully listed 162 new projects on the New Third Board, moving from 9th to 5th in annual listing numbers[97]. Risk Management - The company faces significant risks related to policy, market, credit, operational, and liquidity risks, which could impact its performance due to the correlation with macroeconomic conditions and capital market fluctuations[6]. - The company emphasizes the importance of risk management strategies to mitigate potential impacts from market volatility and regulatory changes[6]. - The company is focusing on innovation in talent management and operational efficiency to strengthen its competitive advantage[144]. - The company is enhancing its risk management framework, focusing on comprehensive risk management and implementing the new risk control indicators management approach[153]. - The company has established a comprehensive risk management platform, including dynamic monitoring systems for risk indicators and stress testing systems, to continuously collect and analyze internal and external data affecting operational goals[158]. - The company has implemented strict credit assessment and management processes, including a blacklist system for untrustworthy clients, to mitigate credit risk in financing and trading activities[164]. - The company has set up a dynamic monitoring system for operational risks, ensuring that all business activities are covered and deviations from targets are corrected promptly[159]. Business Operations - The company has a diverse range of business qualifications, including securities brokerage, investment consulting, and asset management, enhancing its operational capabilities[15]. - The company is actively involved in various financial services, including margin trading and securities lending, which are crucial for its revenue generation[14]. - The company operates in various financial services, including asset management, investment management, and consulting, with a focus on project and equity investments[39]. - The company has established a total of 16 branches, with the latest being in Fuzhou, established on November 26, 2015, with a capital of RMB 20 million[42]. - The company has member qualifications for multiple financial associations, including the China Securities Association and the China Securities Investment Fund Association[24]. - The company is actively pursuing an international business strategy, with plans for further expansion in influential capital markets[80]. Shareholder Returns - The profit distribution plan for 2016 includes a cash dividend of CNY 1.5 per 10 shares, totaling CNY 450 million to be distributed to shareholders[3]. - The company distributed a cash dividend of 3 RMB per 10 shares, totaling 900 million RMB for the 2015 fiscal year[174]. - For the 2016 fiscal year, the company plans to distribute a cash dividend of 1.5 RMB per 10 shares, amounting to 450 million RMB, which represents 30.03% of the net profit attributable to the parent company[176]. - The remaining undistributed profits after the 2016 dividend distribution will be 2,453,843,936.37 RMB, carried over to the next fiscal year[180]. Regulatory Compliance - The company has maintained compliance with regulatory decision-making procedures, with no violations reported regarding external guarantees[8]. - The company has received multiple approvals from regulatory bodies for various business operations, indicating a strong regulatory compliance framework[16]. - The company has committed to not engage in competitive activities that may harm the interests of shareholders, with a permanent commitment from its controlling shareholder[181]. - The company has conducted monthly calculations and reporting of key risk control indicators to regulatory authorities[169]. - The company received a regulatory decision from the China Securities Regulatory Commission for issuing a problematic research report, requiring corrective actions and accountability measures[187]. Market Trends - The securities industry is experiencing intensified competition, prompting a shift from traditional offline expansion to an "online + offline" model[132]. - The marketization process in the securities industry is ongoing, with several full-license joint venture brokerages approved and more in the approval process[133]. - The international expansion of Chinese financial services is being supported by initiatives like the Belt and Road and the inclusion of the RMB in the SDR[134].