ZJOFHC(SH:600120)2019-03-22 16:00Financial Performance - The company's operating revenue for 2018 was approximately ¥9.89 billion, representing a 7.69% increase from ¥9.19 billion in 2017[23]. - Net profit attributable to shareholders decreased by 2.20% to approximately ¥703.64 million from ¥719.50 million in 2017[23]. - The net profit excluding non-recurring gains and losses increased by 100.21% to approximately ¥277.96 million from ¥138.83 million in 2017[23]. - The company's cash flow from operating activities showed a significant decline, with a net outflow of approximately ¥1.12 billion compared to a net inflow of ¥840.64 million in 2017, a decrease of 232.68%[23]. - Basic earnings per share decreased by 27.27% to ¥0.80 from ¥1.10 in 2017[24]. - The weighted average return on equity decreased by 0.45 percentage points to 7.31% from 7.76% in 2017[24]. - Total assets at the end of 2018 were approximately ¥18.36 billion, down 3.93% from ¥19.11 billion at the end of 2017[23]. - The net assets attributable to shareholders decreased by 7.97% to approximately ¥9.23 billion from ¥10.03 billion at the end of 2017[23]. - The company achieved operating revenue of CNY 10,717,753,341.70, representing a year-on-year growth of 9.24%[54]. - The total profit amounted to CNY 102,706.78 million, reflecting a slight increase of 0.41% compared to the previous year[53]. - The net profit attributable to shareholders decreased by 2.20% to CNY 70,363.88 million[53]. Dividend Policy - The company plans to distribute a cash dividend of 1.0 yuan per 10 shares, totaling 87,438,809.30 yuan, while also increasing the total share capital by 262,316,428 shares through a capital reserve conversion, raising the total share capital to 1,136,704,521 shares[6]. - For the year 2018, the company distributed cash dividends of 1.00 RMB per 10 shares, totaling 87,438,809.30 RMB, with a net profit attributable to ordinary shareholders of 703,638,831.12 RMB, representing 12.43% of the net profit[110]. - The company has not adjusted its cash dividend policy during the reporting period, maintaining consistency and stability in its profit distribution approach[106]. - The company has implemented a cash dividend policy that requires a minimum distribution of 30% of the average distributable profit over the last three years[106]. Audit and Compliance - The company has received a standard unqualified audit report from Da Hua Certified Public Accountants[5]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management team, including the responsible person and accounting supervisor[4]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8]. - The company has committed to ensuring the authenticity and completeness of information disclosed, taking legal responsibility for any inaccuracies[114]. Risk Management - The company has outlined potential risks in its future development strategies, which are detailed in the operational discussion and analysis section of the report[8]. - The company’s future plans and strategic developments are subject to investment risks, as stated in the forward-looking statements section[7]. - The company aims to enhance its risk management framework, establishing a vertical risk control structure with the headquarters as the risk management center[46]. - The company emphasizes the importance of risk management, developing a comprehensive risk monitoring system that includes regular and real-time assessments[100]. - The company is closely monitoring macroeconomic conditions and regulatory changes to mitigate potential risks associated with its financial and commercial operations[101]. Business Operations - The company operates multiple financial and trade businesses through various subsidiaries, including trust, futures, life insurance, fund management, direct investment, financing leasing, and wealth management[34]. - Trust business is conducted by Zhejiang Jin Trust, focusing on asset management and diverse investment products across sectors like securities, finance, infrastructure, and real estate[34]. - Futures business is managed by Dadi Futures, offering brokerage, asset management, and risk management services, with a focus on client-driven investment strategies[34]. - Life insurance operations are handled by Zhonghan Life, emphasizing individual and group insurance channels, aiming for steady growth through advanced wealth management concepts[34]. - Wealth management services are provided by Banruo Wealth, focusing on high-net-worth clients with tailored investment solutions and risk control[34]. - Fund management is primarily conducted by Dongfang Chanyun, Guomao Dongfang Capital, and Dongfang Jiafu, generating revenue from management fees and performance-based compensation[34]. - The financing leasing business, led by Guojin Leasing, targets industries like healthcare and high-end manufacturing, with profitability driven by interest rate spreads and leverage[35]. Strategic Development - The company aims to strengthen its financial business layout and develop a distinctive competitive edge in the market[93]. - The company is actively pursuing the acquisition of multiple financial licenses to enhance its operational capabilities and market presence[46]. - The company is exploring external strategic cooperation models to enhance its collaborative capabilities with major financial institutions[41]. - The company plans to strengthen its brand presence and leverage its comprehensive operational characteristics to provide diverse financial services to the real economy[97]. - The company is committed to integrating and restructuring its commercial trade sector, exploring international brand collaborations, and advancing brand acquisition efforts[97]. Social Responsibility - The company actively participated in poverty alleviation efforts, integrating financial services with economic development[155]. - The company donated a total of RMB 900,000 to support the development of collective economy in weak villages from 2018 to 2020[156]. - The company and its subsidiary provided RMB 25,000 annually for three consecutive years to assist poverty alleviation in two villages, ensuring timely funding[156]. - The company’s subsidiary, Dadi Futures, successfully implemented a "Insurance + Futures" poverty alleviation pilot project for rubber, benefiting 545 registered poor farmers with a total compensation of RMB 600,000[156]. - The apple "Insurance + Futures" project created nearly RMB 1.8 million in compensation for 3,000 tons of apples, averaging around RMB 600 per ton[159]. - A total of 2,249 registered poor individuals were lifted out of poverty through the company's initiatives[160]. - The company plans to continue its poverty alleviation efforts by focusing on educational projects in collaboration with charitable organizations[163]. Corporate Governance - The company will enhance its corporate governance by refining governance rules and ensuring compliance with capital market disclosure requirements[100]. - The company is committed to enhancing its corporate culture and promoting a positive atmosphere through various activities and initiatives[94]. - The company aims to enhance employee development by establishing a scientific selection and incentive mechanism, and implementing a unified job level system across subsidiaries[97]. Shareholder Information - The largest shareholder, Zhejiang International Trade Group Co., Ltd., holds 48.38% of the shares, totaling 423,008,274 shares[182]. - The total number of shareholders at the end of the reporting period was 40,688, down from 41,384[182]. - The company has a total of 132,386,086 restricted shares that will become tradable on June 13, 2020[185]. - The company has no significant changes in its controlling shareholder during the reporting period[189]. - The company has no other shareholders holding more than 10% of shares apart from the identified major shareholders[192].