Guosheng Finance(002670)2025-04-21 12:05Corporate Structure and Governance - The company plans to absorb and merge its wholly-owned subsidiary Guosheng Securities Co., Ltd., with approval from the China Securities Regulatory Commission received on February 19, 2025[4]. - The company’s registered address has changed to Nanchang City, Jiangxi Province, effective May 31, 2023[13]. - The company’s legal representative is Liu Chaodong[13]. - The company has established an independent financial department with a complete accounting system to ensure financial independence[102]. - The company held a temporary shareholders' meeting on January 30, 2024, with a participation rate of 56.45%[103]. - The company held its annual shareholder meeting with a voting turnout of 50.50% on June 21, 2024[105]. - The second extraordinary general meeting of shareholders had a voting turnout of 26.91% on July 8, 2024[105]. - The third extraordinary general meeting of shareholders recorded a voting turnout of 56.66% on October 18, 2024[105]. - There were no changes in the positions of directors, supervisors, and senior management during the reporting period[106]. - The current chairman, Liu Chaodong, has held his position since October 12, 2022, with no shareholding changes reported[107]. - The general manager, Lu Zhankan, has also maintained his position since October 12, 2022, with no shareholding changes reported[107]. - The independent director, Guo Yaxiong, has been in his role since December 2, 2022, with no shareholding changes reported[110]. - The company has a diverse board with members holding various professional backgrounds, including finance, law, and engineering[108][109][110]. - The company has not experienced any resignations or dismissals of directors, supervisors, or senior management during the reporting period[107]. - The company continues to maintain a stable leadership structure with no significant changes in shareholding among its executives[106]. Financial Performance - The company reported total revenue for the reporting period, including interest income and commission fees from securities business, but specific figures are not provided in the extracted content[5]. - The total operating revenue for the year reached ¥2,006,832,574.92, representing a 7.11% increase from ¥1,873,554,752.03 in the previous year[32]. - The net profit attributable to shareholders was ¥167,413,149.31, a significant recovery from a loss of ¥29,984,101.49 in the previous year, marking a 658.34% increase[32]. - The net cash flow from operating activities amounted to ¥4,590,863,550.34, a substantial increase from ¥558,628,636.38 in the previous year[32]. - Basic earnings per share were ¥0.0865, compared to a loss of ¥0.0155 in the previous year, indicating a strong turnaround[32]. - Total assets increased by 40.23% year-over-year, reaching ¥45,580,335,179.79, up from ¥32,504,608,270.25[32]. - The weighted average return on equity improved to 1.52%, up from -0.27% in the previous year, reflecting enhanced profitability[32]. - The company reported a net profit of ¥84,294,512.72 in the fourth quarter, showing strong performance compared to previous quarters[36]. - The company has no ongoing issues regarding its ability to continue as a going concern, indicating stability in its operations[32]. - The total non-recurring gains for the year were ¥12.99 billion, compared to ¥9.97 billion in 2023, reflecting a growth of 30.4%[38]. - The company achieved total operating revenue of RMB 2.007 billion in 2024, a year-on-year increase of 7.11%[49]. - Investment income and fair value changes reached RMB 414 million, up 88.44% year-on-year[49]. - The brokerage business revenue grew by 30.15%, outperforming the market average, with the total trading volume in the Shanghai and Shenzhen markets increasing by 20.1% to RMB 254.8 trillion[49][50]. Business Operations - The company operates primarily in the securities business while also engaging in investment activities, adhering to industry reporting requirements[5]. - The company’s securities business remains focused on brokerage and wealth management, investment banking, and asset management, with no significant changes in business types or operating models during the reporting period[44]. - The company is actively developing financial technology to enhance its information technology capabilities, supporting the planning and development of its fintech landscape[45]. - The company has obtained various business qualifications, including the qualification for stock underwriting and trading member of the interbank market since 2003[18]. - The company has expanded its qualifications to include stock options trading and fixed income securities trading by 2016[19]. - The company has maintained a diverse portfolio of licenses, including qualifications for private equity product pricing and services since 2018[20]. - The company has been actively involved in capital increases through capital reserve transfers, with the latest increase in June 2018[22]. - The company has undergone several name changes, reflecting its growth and strategic direction, with the latest name change occurring in August 2017[22]. Regulatory Environment and Compliance - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute substantive commitments to investors[5]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[4]. - The regulatory environment has become stricter, with the number of penalties issued by the China Securities Regulatory Commission reaching a historical high in 2024[43]. - The company emphasizes the importance of maintaining compliance with evolving regulations to mitigate legal and reputational risks[94]. - The company will strictly adhere to relevant laws and regulations, enhancing compliance awareness and risk management to minimize policy-related risks[95]. Shareholder and Market Information - The company’s stock is listed on the Shenzhen Stock Exchange under the code 002670[13]. - The company has not issued any new securities during the reporting period[198]. - The total number of ordinary shareholders at the end of the reporting period was 95,736, an increase from 84,111 at the end of the previous month[198]. - The largest shareholder, Jiangxi Provincial Transportation Investment Group, holds 25.52% of the shares, totaling 493,923,394 shares[199]. - The second largest shareholder, Cedar International Trust, holds 16.11% of the shares, totaling 311,734,019 shares, which are currently pledged and frozen[199]. - Jiangxi Provincial Finance Investment Group holds 7.58% of the shares, totaling 146,583,221 shares[199]. - The top ten shareholders include five state-owned entities, indicating a strong state influence in the company's ownership structure[200]. - The total number of shares held by the top ten unrestricted shareholders amounts to 1,020,000,000 shares[200]. Internal Control and Risk Management - The company conducted a thorough review of its internal control and financial reporting processes during the reporting period[125]. - The company has not identified any major internal control deficiencies during the reporting period, reflecting effective internal governance[140]. - The internal control evaluation report indicated that 100% of the company's total assets and operating income were included in the evaluation scope[141]. - The company aims to enhance its internal control governance and risk management systems to support high-quality development[93]. - The company faces risks including policy changes, operational risks, talent retention challenges, and liquidity risks that could impact its strategic goals[94]. Research and Development - The company is investing 200 million RMB in R&D for new technologies aimed at enhancing user experience[5]. - The company has completed several key R&D projects aimed at enhancing data security and operational efficiency, including a data security control platform and a unified investment education management platform[69]. - The company plans to continue expanding its market presence and enhancing its digital transformation initiatives through ongoing R&D efforts[69]. Community Engagement and Social Responsibility - The company actively engaged in poverty alleviation and rural revitalization efforts, integrating public welfare with inclusive finance[148]. - The company donated 120,000 yuan to support rural healthcare projects in Shaanxi Province, promoting the development of local healthcare systems[148]. - A total of 68,000 yuan was invested in "intangible cultural heritage" projects in three primary schools, enhancing local cultural education[149]. - The company conducted 3,542 investor education activities during the reporting period, with a total participation of 1.2 million people[146]. - The company established a physical investor education base in Ganzhou, the first of its kind in the province, to enhance financial education services[146]. Legal Matters and Disputes - The company received an arbitration ruling on July 18, 2024, requiring Snowball International Trust to transfer 311,734,019 shares (16.11% of total shares) to the company for a total price of 1 yuan and to pay cash compensation[158]. - As of the report date, the company has received 941,972.69 yuan from the enforcement of the arbitration ruling, with ongoing discussions regarding further enforcement actions[159]. - The company has submitted a compulsory execution application to the Nanchang Intermediate Court due to Snowball Trust's failure to fulfill obligations within the specified timeframe[159]. - The company has initiated a forced execution application against Xuesong Trust for failing to fulfill obligations, with a court decision to proceed with the case received on September 23, 2024[188]. - The company received a civil ruling from Nanchang Intermediate Court on November 27, 2024, rejecting the application from Xuesong Trust[160]. - The total amount involved in small lawsuits and arbitration as a plaintiff is approximately RMB 1.1075 billion, while as a defendant, it is about RMB 15.1 million[161][162]. - The company faced administrative regulatory measures from the China Securities Regulatory Commission in May 2024, requiring corrective actions to enhance financial accounting and information disclosure management[163].