SINOLINK SECURITIES(SH:600109)2019-03-28 16:00Financial Performance - The company reported a total revenue of 1.2 billion RMB for the fiscal year 2018, representing a year-over-year increase of 15%[31]. - The company's operating revenue for 2018 was CNY 3,766,119,304.82, a decrease of 14.22% compared to CNY 4,390,587,320.59 in 2017[36]. - The net profit attributable to shareholders for 2018 was CNY 1,010,492,527.44, down 15.89% from CNY 1,201,432,521.06 in the previous year[36]. - The company reported a net profit margin of 18%, up from 15% in the previous year[31]. - The total assets at the end of 2018 amounted to CNY 46,667,401,967.04, reflecting a 10.87% increase from CNY 42,093,220,091.18 in 2017[36]. - The total liabilities increased by 16.81% to CNY 27,106,523,520.01 in 2018, compared to CNY 23,205,723,515.53 in 2017[36]. - The basic earnings per share for 2018 was CNY 0.334, a decrease of 15.87% from CNY 0.397 in 2017[37]. - The weighted average return on equity for 2018 was 5.28%, down from 6.62% in 2017, a decrease of 1.34 percentage points[37]. - The company reported a net cash flow from operating activities of CNY 2,597,501,223.75 in 2018, a significant recovery from a negative cash flow of CNY -10,507,819,185.85 in 2017[36]. Capital Structure - The company plans to distribute a cash dividend of 0.40 RMB per 10 shares, totaling 120,974,372.40 RMB, based on a total share capital of 3,024,359,310 shares as of December 31, 2018[5]. - The registered capital of the company remains at 3,024,359,310 RMB, unchanged from the previous year, indicating stability in capital structure[12]. - The company’s total equity attributable to shareholders increased by 3.47% to CNY 19,489,680,217.07 at the end of 2018, compared to CNY 18,836,585,907.12 at the end of 2017[36]. - The company’s liquidity coverage ratio decreased to 157.84% from 219.00% in the previous year[38]. - The company’s cash and cash equivalents stood at CNY 3.38 billion, accounting for 9.61% of total assets, after excluding client margin deposits[80]. Business Operations - The company has a comprehensive range of business qualifications, including securities brokerage, investment consulting, and asset management, enhancing its market competitiveness[12]. - The company’s operational activities are detailed in the report, highlighting potential risks and future development discussions[7]. - The company established 62 securities business departments across various provinces as of December 31, 2018[28]. - The company is investing 200 million RMB in technology development to enhance trading algorithms and user experience[31]. - The company is exploring potential mergers and acquisitions to strengthen its market position, with a focus on fintech startups[31]. Risk Management - The company has established a comprehensive risk management system, including various risk management policies and a dedicated risk management department[109]. - The liquidity risk management framework includes monitoring liquidity coverage ratios and net stable funding ratios, ensuring the safety and liquidity of monetary funds[112]. - The company actively tracks national monetary policy and market interest rate trends to control bond investment scale, duration, and leverage[112]. - The company has implemented a risk limit management system, including scale limits, stop-loss limits, and risk limits, to mitigate market risks[112]. - The company has developed a risk management culture that encourages participation from all employees, enhancing overall risk awareness[111]. Corporate Governance - The company has maintained a standard unqualified audit report from Tianjian Certified Public Accountants, ensuring the reliability of its financial statements[4]. - The independent directors confirmed that the 2018 profit distribution plan aligns with the company's long-term interests and complies with relevant regulations[120]. - The integrity status of the company and its controlling shareholders was good, with no significant debts overdue[129]. - The company has established a comprehensive internal control mechanism to ensure compliance and risk management across all business processes[115]. - The company has maintained effective communication with investors, particularly small and medium shareholders, regarding profit distribution plans[119]. Social Responsibility - The company invested a total of 246.88 million yuan in information technology in 2018, which includes expenses for IT fixed and intangible asset depreciation, daily operations, and IT personnel[114]. - The company invested CNY 950,000 in targeted poverty alleviation projects in 2018[163]. - The company received the "2018 Poverty Contribution Award" from the Securities Times, recognizing its efforts in poverty alleviation[166]. - The company collected approximately 250 boxes of winter clothing for impoverished areas, ensuring warmth for those in need[165]. - The company emphasizes its commitment to social responsibility, integrating economic growth with social development[169]. Future Outlook - The company provided guidance for 2019, expecting a revenue growth of 10% to 12%[31]. - The company plans to expand its investment banking business by leveraging market trends and policy opportunities, enhancing project quality, and controlling project risks[103]. - The company aims to enhance its financial services efficiency and reliability while pursuing a vision to become a significant financial service institution[47]. - The company plans to enhance retail business efficiency through online standard services and offline customized services for high-net-worth clients, increasing technology investment and data operations[102]. - The company anticipates further industry consolidation and increased competition, favoring larger brokerages with strong capital and comprehensive business structures[100].