JLGF(SZ:000712)2018-03-21 16:00Financial Performance - The company reported a total revenue of 1.5 billion RMB for the year, representing a year-over-year increase of 12%[40]. - The company's operating revenue for 2017 was ¥1,174,810,934.17, a decrease of 37.89% compared to ¥1,891,376,457.80 in 2016[42]. - The net profit attributable to shareholders was ¥194,283,167.21, down 46.85% from ¥365,564,081.34 in the previous year[42]. - The total assets increased by 27.41% to ¥33,341,055,448.55 in 2017 from ¥26,168,003,336.93 in 2016[43]. - The total liabilities rose by 33.71% to ¥27,813,252,771.37 in 2017 from ¥20,800,661,255.29 in 2016[43]. - The basic earnings per share decreased by 46.34% to ¥0.22 in 2017 from ¥0.41 in 2016[42]. - The weighted average return on net assets was 5.24%, a decrease of 5.15 percentage points from 10.39% in 2016[42]. - The net cash flow from operating activities was negative at -¥4,010,848,957.75, a decline of 177.44% compared to ¥1,133,099,883.40 in 2016[42]. - The company reported a net profit of ¥232,860,623.37 for the parent company, an increase of 70.07% from ¥136,918,695.06 in 2016[43]. - The company's core net capital increased by 38.20% to CNY 3,584,791,282.52 compared to the previous year[51]. - The total net capital rose by 16.45% to CNY 4,324,791,282.52 year-over-year[51]. - The company's liquidity coverage ratio improved significantly by 128.37 percentage points to 269.86%[51]. - The total operating revenue decreased by 37.89% year-on-year, with significant declines in various regions, particularly in Beijing (-32.49%) and Zhejiang (-45.16%)[84]. - The net profit for 2017 was ¥244,582,496.87, down 49.41% from ¥483,440,385.71 in the previous year[101]. Business Operations and Strategy - The major business transition occurred in 2014, shifting from water supply to securities business after acquiring controlling stakes in Zhongshan Securities[16]. - The company has undergone significant asset restructuring since 2000, progressively moving into the financial services sector[16]. - The company has been actively involved in mergers and acquisitions, including the acquisition of a 40% stake in Dongguan Securities in 2009[16]. - The company’s main business is now classified under the financial services sector, specifically capital market services[16]. - The company has established a comprehensive set of qualifications for various financial services, including foreign exchange and online securities trading[17]. - The company is focused on expanding its market presence through strategic acquisitions and partnerships in the financial services sector[36]. - Zhongshan Securities has a diverse range of business departments, including retail, investment banking, and asset management, to enhance service offerings[33]. - The company has established a comprehensive governance structure, including a board of directors and various committees to ensure effective management[32]. - The company has established partnerships with four national-level poverty-stricken counties, including Yunnan's Yongren County and Guizhou's Puding County, to implement targeted poverty alleviation strategies[170]. Shareholder and Capital Structure - The profit distribution plan approved by the board is to distribute a cash dividend of 1.00 RMB per 10 shares (including tax) to all shareholders, with no bonus shares issued[5]. - As of the end of the reporting period, the controlling shareholder, New Century Company, held 382,110,504 shares, accounting for 42.65% of the total share capital[16]. - The total share capital of the company increased to 448,000,000 shares after a non-public offering of 143,376,952 shares in August 2012[27]. - The total share capital of the company doubled from 448 million shares to 896 million shares after a capital reserve conversion on May 23, 2014[28]. - The company distributed a cash dividend of RMB 1.00 per share (including tax) to shareholders, totaling RMB 89.6 million for the 2016 fiscal year[134]. - The management team has completed a share buyback plan, acquiring 1,936,300 shares, which is 0.22% of the total shares, for a total amount of RMB 32,335,500[139]. - The largest shareholder, Dongguan New Century Education and Expansion Co., Ltd., holds 42.65% of the shares, totaling 382,110,504 shares, with 339,599,232 shares pledged[192]. Regulatory Compliance and Risk Management - The board of directors and management have confirmed the accuracy and completeness of the financial report, assuming legal responsibility for any misstatements[4]. - The company emphasizes the importance of risk awareness for investors regarding future operational development plans[5]. - The company has established a dynamic risk control indicator monitoring system focused on net capital and liquidity[130]. - The company is committed to maintaining compliance with regulatory standards and improving internal controls within its operations[33]. Market Presence and Expansion - Zhongshan Securities operates three regional branches located in Shanghai, Beijing, and Shandong[34]. - As of the end of 2017, Zhongshan Securities had 80 licensed securities offices across various regions in China[37]. - The company operates in major cities including Beijing, Tianjin, and Shenzhen, indicating a broad geographical presence[37]. - The company is expanding its market presence by entering three new provinces, which is projected to increase market share by 15%[40]. - Zhongshan Securities has established 40 new branches during the reporting period, enhancing its market presence[63]. Investment and Financial Activities - The company completed a strategic acquisition of a local tech firm for 500 million RMB, aimed at enhancing its product offerings[40]. - The company plans to invest in establishing two new insurance companies, pending regulatory approval[54]. - The company has invested CNY 1.09 billion in its subsidiary Zhongshan Securities to strengthen its controlling position[63]. - The company plans to invest RMB 200 million to establish a wholly-owned subsidiary for alternative investment business[180]. - A wholly-owned private equity fund subsidiary will be established with RMB 100 million of the company's own funds, which has completed business registration as of January 10, 2018[181]. Social Responsibility and Community Engagement - The company actively explored various channels for targeted poverty alleviation, focusing on the intrinsic needs of supported regions[63]. - The company has invested a total of 1,298,300 RMB in poverty alleviation efforts, with 400,000 RMB specifically allocated for educational support for impoverished students[172]. - Zhongshan Securities has been awarded multiple honors for its poverty alleviation contributions, including the "Best Industry Development Award" and "Pioneer Investment Bank for Poverty Financing" in 2017[171]. - The company plans to continue its targeted poverty alleviation work, focusing on industrial development, consumption poverty alleviation, and educational support in collaboration with local governments[175].