JLGF(SZ:000712)2015-04-14 16:00Dividend Distribution - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares to all shareholders, based on a total of 896,000,000 shares[4] - The company distributed a cash dividend of 2.00 yuan per 10 shares (including tax) for the 2013 fiscal year, with no stock dividends issued[84] - The company has established a profit distribution policy prioritizing cash dividends, with a minimum of 80% cash distribution for mature companies without major capital expenditures[85] - The company will ensure that cumulative cash distributions over three years will not be less than 50% of the average distributable profit for those years[86] - The company plans to distribute a cash dividend of RMB 1 per 10 shares for the fiscal year 2014, totaling RMB 89,600,000, based on a total share capital of 896,000,000 shares[90] - The average distributable profit for the years 2012, 2013, and 2014 was RMB 7,139.42 million, with cumulative cash distributions over three years amounting to RMB 22,400 million, in compliance with the company's articles of association[90] - In 2014, the company's net profit was RMB 386,755,296.71, with retained earnings of RMB 768,614,359.80 after statutory reserve allocations[92] - The cash dividend for 2013 was RMB 89,600,000, representing 167.85% of the net profit attributable to shareholders[92] - The cash dividend for 2012 was RMB 44,800,000, which accounted for 189.88% of the net profit attributable to shareholders[92] - The company has established a profit distribution policy that ensures continuous and stable returns to investors, with independent directors and shareholders' opinions considered in decision-making[93] - The company has a clear and compliant process for modifying profit distribution policies, requiring a two-thirds majority approval from shareholders[88] - The company emphasizes the protection of minority shareholders' rights and provides them with opportunities to express their opinions during the profit distribution discussions[89] - The company has maintained a consistent cash dividend policy, adhering to relevant regulations and ensuring transparency in its operations[94] - The company has a robust governance structure in place to oversee the execution of profit distribution policies and ensure compliance with legal requirements[88] Business Transformation - The company has undergone a series of business transformations since its establishment, moving from textile production to water supply and now to financial services[18] - The company completed the acquisition of controlling interest in Zhongshan Securities in May 2014, marking a significant shift in its business focus towards securities operations[18] - The company no longer operates the water supply business after transferring 80% of the shares in Qingyuan Water Co., Ltd. in March 2014[18] - The company’s main business has transitioned to securities services as of July 2014, following the restructuring of its operations[18] - The company reported a significant asset restructuring in 2014, which included the acquisition of 40% of Dongguan Securities[18] - The company divested 80% of its water supply business in March 2014 to focus on financial services, particularly in securities[30] - The company completed the transfer of 80% equity in Qingyuan Water Co., thus ceasing its water supply business, and shifted its main operations to securities business following the acquisition of Zhongshan Securities[34] - The company is focused on the securities business, which is expected to benefit from the growing investment and financing demands of institutional and individual clients[74] Financial Performance - The total operating revenue for 2014 was CNY 1,136,466,454.52, representing a year-on-year increase of 231.54%[22] - The net profit attributable to shareholders was CNY 386,755,296.71, reflecting a significant growth of 624.53% compared to the previous year[22] - The net profit after deducting non-recurring gains and losses was CNY 177,340,513.36, an increase of 255.87% year-on-year[22] - The cash flow from operating activities reached CNY 1,541,439,207.17, marking a 416.40% increase from the previous year[22] - Basic and diluted earnings per share were both CNY 0.43, up 616.67% from CNY 0.06 in the previous year[22] - The total assets at the end of 2014 were CNY 15,199,088,263.24, a growth of 46.26% compared to the end of 2013[22] - The net assets attributable to shareholders increased by 15.44% to CNY 2,558,687,211.68 at the end of 2014[22] - The company's total revenue from the securities business reached 1,096,271,346.12 yuan, marking a 412.93% increase year-on-year[46] - The gross profit margin for the securities business was reported at 71.60%, slightly down by 5.28% from the previous year[46] - Operating cash inflow increased by 58.49% to 4,583,634,368.30 yuan in 2014, primarily due to increased revenue from Zhongshan Securities[43] - The net cash flow from operating activities surged by 416.40% to 1,541,439,207.17 yuan, attributed to the same reason as above[44] Shareholder Information - As of the end of the reporting period, the controlling shareholder, New Century Company, held 47.45% of the company's shares[18] - The total number of ordinary shareholders was 36,350, with the largest shareholder, Dongguan New Century Science and Education Development Co., Ltd., holding 47.45% of the shares[138] - A total of 66 million shares, representing 7.37% of the company's total shares, were transferred from New Century Company to Yang Zhimao, with 23 million shares already completed in the first phase[130] - New Century transferred 66 million shares (7.37% of total shares) to Mr. Yang Zhimiao, with 23 million shares completed in the first phase of the transfer[132] - The top ten shareholders hold their shares through ordinary securities accounts and have not used margin trading[140] - The company has no preferred shares in existence during the reporting period[149] Governance and Management - The company has established and revised governance systems in compliance with the Company Law and relevant regulations[167] - The company has implemented a management system for insider information to prevent insider trading[167] - The company has maintained a clear separation from its controlling shareholder in terms of personnel, assets, finance, and operations[166] - The company’s governance structure aligns with the requirements set by the China Securities Regulatory Commission[165] - The company continues to leverage the expertise of its independent directors in finance and management for strategic decisions[154][155] - The management team has extensive experience in both educational and financial sectors, enhancing the company's operational capabilities[152][153] - The total remuneration paid to directors, supervisors, and senior management for the year 2014 was CNY 5.225 million[158] - The company employed a total of 1,295 staff members, with 55.52% in business departments and 69.81% holding a bachelor's degree or above[163] - The company held 3 shareholder meetings, 8 board meetings, and 5 supervisory meetings during the reporting period[167] - The independent directors attended all board meetings and did not raise any objections during the reporting period[172] - The audit committee confirmed that the 2014 financial statements accurately reflect the company's financial status and operations[175] - The company has established an independent financial department and accounting system, ensuring financial autonomy[178] - The company did not implement any stock incentive plans during the reporting period[176] - The company conducted a self-examination of its governance practices and revised relevant systems accordingly[171] Investment Activities - The company acquired a 4.43% stake in Zhongshan Securities for a transaction price of 17,514.01 million CNY, enhancing its control over the subsidiary[103] - The company reported a significant reduction in external equity investments, with an investment amount of ¥191,540,050.00 in the reporting period, a decrease of 92.57% from ¥2,577,580,000.00 in the previous year[56] - The company’s total profit impact from securities investments is ¥249,861,852.54 for the reporting period[59] - The company’s total profit impact from financial enterprise investments is ¥370,644,616.31 for the reporting period[57] - The company’s bond investments include a total initial investment of ¥1,387,427,229.81, with a total book value of ¥1,449,910,589.07 and a profit impact of ¥278,322,053.52[59] - The company’s investment in the bond "14 Fuyang City Investment Bond" has a book value of ¥52,341,150 and a profit impact of ¥8,454,293.87[59] - The company’s investment in the bond "13 Qiantou" has a book value of ¥82,515,201.36 and a profit impact of ¥7,674,804.20[59] Risk Management - The company emphasizes the importance of risk factors that may affect future development, as outlined in the annual report[12] - The company has not engaged in entrusted financial management, derivative investments, or entrusted loans during the reporting period[62][63][64] - The company has not changed the use of raised funds, maintaining a 0.00% change in purpose ratio[66] - The company has no major non-raised fund investment projects during the reporting period[74] - The company has not made a profit forecast for 2015, citing risks related to the securities industry and economic cycles[77] Future Plans - The company plans to actively promote the non-public stock issuance project in 2015 to provide financial support for future development and market investment opportunities[76] - The company aims to strengthen control over Zhongshan Securities and enhance its internal control and risk management, with a focus on expanding its internet finance business[76] - The company will support Dongguan Securities in its IPO preparations to enhance its capital strength, business structure, brand recognition, and profitability[76] - The company intends to leverage its platform to provide strong capital support for Zhongshan Securities, addressing its capital adequacy needs[77] - The company will implement an effective incentive mechanism for Zhongshan Securities' management to attract top industry talent[78] Environmental and Social Responsibility - The company maintained a strong commitment to environmental protection, confirming that its securities business is a low-energy consumption industry[95] - The company confirmed that there were no major social security issues or administrative penalties during the reporting period[95] - The company provided a comfortable working environment and emphasized corporate culture development for its employees[95] - The company emphasized employee training and development, focusing on business knowledge, safety production, and management skills[95]