Guosheng Finance(SZ:002670)2018-04-19 16:00Share Structure and Dividends - The total number of shares issued by the company is 1,497,804,400 shares[6]. - The company has repurchased 5,870,188 shares, which do not have dividend or voting rights[6]. - The profit distribution plan proposes a cash dividend of 0.10 CNY per 10 shares (including tax) and a capital reserve conversion of 3 shares for every 10 shares held[6]. - The cash dividend proposal for 2017 is to distribute a total of 14,919,342.12 CNY, with a dividend of 0.10 CNY per 10 shares[116]. - The cash dividend payout ratio for 2017 is 2.57% of the net profit attributable to ordinary shareholders[118]. - The total number of shares for the dividend distribution is based on 1,491,934,212 shares[121]. - The company will also increase capital by issuing 3 additional shares for every 10 shares held by shareholders[121]. - The cash dividend accounts for 100% of the total profit distribution[121]. - The distributable profit amounts to 115,563,429.37 yuan[121]. - The cash dividend distribution will be adjusted if the total share capital changes after the board's approval of the profit distribution plan[121]. Financial Performance - Total revenue for 2017 was ¥1,873,363,010.20, an increase of 14.10% compared to ¥1,641,860,329.98 in 2016[19]. - Net profit attributable to shareholders for 2017 was ¥580,642,470.28, reflecting a growth of 16.56% from ¥498,145,590.82 in 2016[19]. - The net profit after deducting non-recurring gains and losses was ¥611,704,948.33, up 23.69% from ¥494,562,469.33 in 2016[19]. - The company's total assets at the end of 2017 were ¥27,953,515,141.49, a 7.80% increase from ¥25,930,550,038.17 at the end of 2016[20]. - The net assets attributable to shareholders increased by 11.33% to ¥12,874,069,912.62 from ¥11,564,082,579.95 in 2016[20]. - The basic earnings per share for 2017 was ¥0.3877, down 21.63% from ¥0.4947 in 2016[19]. - The weighted average return on equity decreased to 4.85% in 2017, down 2.22 percentage points from 7.07% in 2016[20]. - The net cash flow from operating activities was -¥3,840,551,826.38, an improvement of 38.39% from -¥6,233,746,504.35 in 2016[19]. - The company reported a net profit of 1,301,308,535.68 HKD from its subsidiary Guosheng (Hong Kong) Investment Limited, with total assets of 1,301,298,676.69 HKD[104]. Business Operations and Strategy - The company primarily generates revenue and profit from its securities business, which is detailed in the financial report[5]. - The company engaged in securities, investment, financial technology, and cable businesses during the reporting period[30]. - The company underwent a change in its main business operations, transitioning from manufacturing to capital market services following the acquisition of 100% equity in Guosheng Securities[17]. - The company plans to enhance its national service and marketing capabilities by establishing over 20 new securities branches, approved by the Jiangxi Securities Regulatory Bureau[35]. - The company is expanding its national network, having received approval to establish over 20 new branches in major cities, which will enhance service and integration capabilities[44]. - The company aims to establish a comprehensive financial service system covering securities, insurance, investment, and trust businesses through both organic and external growth strategies[105]. - The company is focusing on innovation and talent acquisition, forming a new management team with experienced professionals from various sectors[42]. - The company is adapting its investment strategy to the regulatory environment, slowing down investment pace while enhancing post-investment management[47]. Market and Industry Insights - In 2017, the total revenue of the securities industry in China was 311.33 billion CNY, with a net profit of 112.99 billion CNY, representing a year-on-year decrease of 5.08% and 8.47% respectively[31]. - By the end of 2017, total assets, net assets, and net capital of the securities industry reached 6.14 trillion CNY, 1.85 trillion CNY, and 1.58 trillion CNY, showing growth of 6.04%, 12.80%, and 7.48% year-on-year[31]. - The company improved its business structure, with brokerage business, proprietary trading, investment banking, and asset management accounting for 32.46%, 30.59%, 5.75%, and 9.24% of total revenue respectively in 2017, compared to 47.04%, 23.28%, 14.56%, and 4.12% in 2016[43]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share by 2025[125]. Research and Development - The company invested $50 million in R&D for new technologies aimed at enhancing user experience[124]. - Research and development expenses increased by 10%, focusing on innovative technologies and product enhancements[125]. - The company is investing in R&D with a budget increase of 15%, focusing on innovative technologies[126]. - The company plans to invest $200 million in research and development for new technologies aimed at enhancing user experience[129]. Risk Management and Compliance - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report[5]. - The company is actively enhancing its risk and compliance management systems, integrating various business units into a unified framework[45]. - The company recognizes the need to prevent risks as a top priority in its future development strategy[106]. - Risk control will be prioritized by identifying potential risks early to minimize losses and costs[108]. - The company has committed to ensuring that its financial reporting is accurate and adheres to industry standards[123]. Corporate Governance and Social Responsibility - The company has established a sound governance structure to protect the rights of shareholders and creditors, enhancing transparency and communication with investors[172]. - The company has committed to fulfilling its performance obligations as per the agreements made with stakeholders, ensuring compliance with regulatory requirements[127]. - The company aims to support local agricultural product sales and assist in the development of industries in impoverished areas through capital market services[180]. - The company has implemented a project to help 52 impoverished households in a specific village achieve stable poverty alleviation through beekeeping[181].