ZJOFHC(SH:600120)2020-03-27 16:00Profit Distribution and Share Capital - The company proposed a profit distribution plan for 2019, distributing 2 shares for every 10 shares held and a cash dividend of 0.6 yuan per share, totaling 95,483,179.80 yuan in cash dividends[7]. - As of December 31, 2019, the total share capital was 1,591,386,330 shares, which will increase to 2,227,940,862 shares after the proposed distribution[7]. - 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[99]. - In 2018, the company distributed a cash dividend of 1 RMB per 10 shares, totaling 87.44 million RMB, and increased its total share capital by 262.32 million shares through capital reserve conversion[99]. - For the year 2019, the company distributed a cash dividend of 0.6 RMB per 10 shares, amounting to approximately 95.48 million RMB, which represents 11.89% of the net profit attributable to ordinary shareholders[101]. Financial Performance - The company's operating revenue for 2019 was approximately ¥10.84 billion, representing a 9.61% increase compared to ¥9.89 billion in 2018[25]. - Net profit attributable to shareholders was approximately ¥802.98 million, a 14.12% increase from ¥703.64 million in the previous year[25]. - The net profit after deducting non-recurring gains and losses surged by 113.17% to approximately ¥592.53 million from ¥277.96 million in 2018[25]. - The company's total assets increased by 18.54% to approximately ¥21.77 billion, up from ¥18.36 billion in 2018[25]. - The weighted average return on equity rose to 7.80%, an increase of 0.49 percentage points from 7.31% in 2018[25]. - Total operating revenue for the year was 11.727 billion yuan, representing a year-on-year growth of 9.42%[45]. - Net profit for the year was 968 million yuan, showing a year-on-year increase of 24.26%, both figures being historical highs[45]. Risk Management and Compliance - The company reported no significant risks affecting normal operations during the reporting period[9]. - The company has a standard unqualified audit report from Da Hua Accounting Firm[6]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management[4]. - The company has no non-operating fund occupation by controlling shareholders or related parties[9]. - The company’s future plans and strategies are subject to investment risks, and investors are advised to be cautious[8]. - The company is focused on enhancing its risk management capabilities to address various financial risks, including credit, liquidity, and market risks[95]. - The company has established a comprehensive risk policy framework to optimize its investment strategies and manage significant project risks[95]. - The company is committed to improving its risk management framework, establishing a multi-layered risk control mechanism to prevent systemic financial risks[92]. Business Operations and Strategy - The company operates as a state-owned financial holding platform, engaging in various financial and trade businesses through multiple subsidiaries and joint ventures[34]. - The trust business is conducted by Zhejiang Jin Trust, which is the only trust company in Zhejiang Province, actively engaging in diverse trust services across multiple sectors[34]. - The futures business is managed by Dadi Futures, which has qualifications for various exchanges and offers services including commodity futures brokerage and asset management[34]. - The life insurance business is operated by Zhonghan Life, a joint venture focusing on life, health, and accident insurance, utilizing multiple sales channels for steady growth[37]. - The wealth management business, led by Banruo Wealth, is one of the earliest established in China, focusing on asset management and private equity investment[37]. - The company aims to enhance its competitive edge by improving compliance and risk management in response to evolving market conditions[34]. - The company aims to enhance its core competitiveness through a diversified business system, including trust, futures, financing leasing, wealth management, and private equity fund management[41]. - The financial segment will promote collaboration among various financial companies to enhance core competitiveness and develop a comprehensive financial ecosystem[89]. Shareholder Structure and Governance - The largest shareholder, Zhejiang International Trade Group Co., Ltd., holds 48.38% of the total shares, amounting to 769,875,060 shares[181]. - The company has a diverse board with members holding various significant positions in other financial and academic institutions, enhancing its governance structure[200]. - The total number of ordinary shares increased from 874,388,093 to 1,591,386,330 due to a capital reserve conversion plan, resulting in a distribution of 454,681,809 shares[175]. - The total number of shares held by the top ten shareholders represents a significant portion of the company's equity, with limited sale shares included[181]. - The company has not engaged in any related party transactions for remuneration during the reporting period, ensuring transparency[197]. Social Responsibility and Community Engagement - The company donated a total of RMB 900,000 to Zhangcun Village in Jiangshan City, Zhejiang Province from 2018 to 2020, contributing RMB 300,000 annually[160]. - The company established a partnership with Daxing Village in Yilong County, Sichuan Province, donating RMB 600,000 over two years for a fish and shrimp breeding base project[160]. - The total amount of funds allocated for poverty alleviation efforts reached RMB 155.09 million, helping 13,677 registered impoverished individuals to escape poverty[161]. - The company implemented over 10 "insurance + futures" pilot projects in various regions, providing risk management services to reduce production costs for enterprises and farmers[160]. - The company plans to continue its poverty alleviation initiatives in 2020, aligning with national goals to build a moderately prosperous society[165]. Financial Reporting and Accounting Policies - The company aims to align its accounting policies with international standards, implementing new financial instrument accounting standards from January 1, 2019[125]. - The company has engaged Da Hua Accounting Firm for auditing services, with a remuneration of 1.05 million yuan for a five-year term[130]. - The company reported daily related party transactions amounting to 5.373 million yuan for purchases and sales, 9.0686 million yuan for office space leasing, and 7.6851 million yuan for labor services[135]. - The company has recorded a provision for impairment of RMB 44,940,000 related to certain funds, with the principal amount fully provisioned[141]. - The company will not restate prior financial statements under the new standards, ensuring that the changes do not affect the net profit, total assets, or equity for 2019[127].