SHCF(SH:600621)2019-03-28 16:00Financial Performance - Total revenue for 2018 was approximately CNY 1.18 billion, a decrease of 67.54% compared to the previous year[26]. - Net profit attributable to shareholders was CNY 21.85 million, down 97.19% year-over-year[26]. - Basic earnings per share for 2018 was CNY 0.77, reflecting a decline of 97.40% from 2017[29]. - The company reported a net cash flow from operating activities of approximately -CNY 1.43 billion, a decrease of 9.52% compared to the previous year[26]. - The total assets at the end of 2018 were approximately CNY 19.85 billion, an increase of 11.83% from 2017[26]. - The company’s net assets attributable to shareholders decreased by 7.86% year-over-year, totaling approximately CNY 6.20 billion at the end of 2018[26]. - The company reported a significant increase in asset disposal income, rising by 986.20% to CNY 42.66 million[76]. - The company’s total revenue from the securities industry decreased by 26.78% year-on-year, with interest and commission income dropping to 106.88 million yuan, a decline of 24.80% due to a significant decrease in overall trading volume in the securities market[80]. - Revenue from the financing leasing business increased by 84.12% year-on-year, reaching 19.55 million yuan, attributed to the expansion of related business investments[80]. - The real estate sector reported a revenue of 60.68 million yuan, down 97.20% year-on-year, with no property sales this year compared to 183.46 million yuan in the previous year[80]. Dividend Distribution - The company plans to distribute a cash dividend of 0.07 RMB per 10 shares, totaling 7,426,295.04 RMB, which accounts for 33.99% of the net profit attributable to shareholders[7]. - In 2018, the company distributed a cash dividend of CNY 0.07 per 10 shares, amounting to CNY 7,426,295.04, which is 33.99% of the net profit attributable to shareholders[141]. - The company approved a cash dividend of CNY 2.20 per 10 shares for the 2017 fiscal year, totaling CNY 233,397,844.24, which represents 30.13% of the net profit attributable to shareholders[140]. Business Operations and Strategy - The company completed the acquisition of 65% of Yidian Sibaiyi Financing Leasing (Shanghai) Co., Ltd., enhancing its business portfolio[40]. - The company aims to enhance its wealth management services by integrating internal and external resources, focusing on personalized financial advisory services[50]. - The company aims to transform into a technology-driven financial service enterprise, focusing on high-quality financial solutions and enhancing its competitive edge through financial technology[118]. - The strategic plan for 2019 includes optimizing management processes and enhancing internal controls to improve overall competitiveness[118]. - The company plans to establish a centralized management platform leveraging financial technology to support its transformation into a technology innovation-driven financial service platform[118]. - The company is focusing on expanding its institutional business assets and transitioning its business structure to better serve private equity funds[119]. - The company has established a "five-in-one" private equity service solution, focusing on customized services, which has begun to take shape and is a core driver for business transformation[121]. Market and Industry Analysis - In 2018, Huaxin Securities' operating income and net profit decreased due to a significant contraction in market activity, with the overall industry revenue declining by 14.47% to CNY 266.29 billion and net profit dropping by 41.04% to CNY 66.62 billion[43]. - The average daily trading volume in the Shanghai and Shenzhen stock markets fell by 19.49% year-on-year to CNY 368.87 billion in 2018, with the Shanghai Composite Index and Shenzhen Composite Index decreasing by 24.59% and 33.25%, respectively[44]. - The overall industry ROE for 2018 was 3.525%, marking a decline of 2.975 percentage points from the previous year, the lowest since 2014[44]. Risk Management - The company has outlined potential industry and market risks in its annual report[9]. - The company faces potential risks including policy risk, market risk, credit risk, and liquidity risk, which could impact its operations[132][133][134]. - The company will optimize its risk management system and improve compliance and risk control through financial technology[126]. Corporate Governance - The company has received a standard unqualified audit report from Zhonghua Accounting Firm[5]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties[9]. - There are no violations of decision-making procedures regarding external guarantees[9]. - The company’s independent directors fulfilled their responsibilities in the decision-making process for the profit distribution plan[140]. - The company guarantees the independence of Huaxin Co., ensuring independent management, assets, and financial systems[155]. Social Responsibility - The company has established partnerships with two national-level poverty-stricken counties, increasing its support efforts from the previous year[199]. - The company facilitated a total of 30 million RMB in special poverty alleviation funds for Jianhe County through collaboration with China People's Insurance Guizhou Branch[199]. - A promotional event for Jianhe County's cultural tourism and health industry attracted over 70 enterprises, resulting in six cooperation agreements signed[199]. - The company invested 500,000 RMB in a training program for rural teachers in Jianhe County, aiming to enhance their teaching capabilities[199]. - The company donated 500,000 RMB to Shanghai Charity Foundation to improve conditions at a kindergarten in Chongli District[199].