Luxin Co.,(SH:600783)2020-09-03 16:00Capital Strength and Growth - The registered capital of Shandong International Trust Co., Ltd. increased to RMB 4,658,850,000 in January 2019, reflecting a continuous enhancement of capital strength[9]. - Total assets reached RMB 14,572 million in 2019, an increase of 7.1% from RMB 13,612 million in 2018[64]. - The scale of actively managed trust business surpassed RMB 100 billion for the first time[84]. - The scale of entrusted managed trust assets reached RMB 257.664 billion, with actively managed trust assets exceeding RMB 100 billion for the first time, totaling RMB 109.677 billion, accounting for 42.6%, an increase of 3.9 percentage points from the beginning of the year[115]. Financial Performance - The net profit attributable to shareholders was RMB 878 million in 2019, down 22.1% from RMB 1,127 million in 2018[64]. - In 2019, the company achieved operating revenue of RMB 1,886.7 million, an increase of 11.3% year-on-year; however, net profit attributable to shareholders decreased by 23.9% to RMB 663.9 million due to reduced income from joint ventures and increased costs[127]. - Total operating income increased to RMB 1,887 million in 2019, representing a growth of 11.4% compared to RMB 1,695 million in 2018[64]. - The company's net profit attributable to shareholders for 2019 was RMB 663.9 million, a decrease of RMB 208.3 million or 23.9% compared to the previous year[180]. Revenue Sources - Commission and fee income rose to RMB 1,038 million in 2019, up 16.5% from RMB 891 million in 2018[64]. - The trust business accounted for 51.7% of total revenue, while proprietary business contributed 48.3% in 2019, with total revenue reaching RMB 2,010.4 million[129]. - Revenue from active management trusts was RMB 797 million, accounting for 76.8% of total trust business revenue, up 6.4 percentage points year-on-year[132]. - Revenue from financing trusts decreased by 16.6% to RMB 387 million in 2019 compared to 2018[143]. - Revenue from investment trusts increased by 151.5% to RMB 410 million in 2019 compared to 2018[152]. Product Development and Innovation - The company has developed a comprehensive range of trust products, including corporate trust, infrastructure trust, real estate trust, and family trust, enhancing its service offerings[9]. - The company expanded its family trust business, launching standardized products such as marriage and education funds, and increased partnerships with insurance companies and commercial banks[131]. - The company launched new cash management trust products and successfully implemented the first standardized ABS trust, expanding the scale of consumer trusts and bond trusts[123]. - The company launched the Shandong Guoxin APP, providing one-stop service and cloud-based trust services[83]. Awards and Recognition - The company has received numerous awards, including the "Best Financial Service Institution" and "Best Corporate Governance Award," indicating strong recognition in the industry[10]. - Shandong International Trust has been recognized as an advanced unit for contributions to financial development by the Shandong provincial government[10]. - The company was awarded the "2019 Excellent Risk Control Trust Company" by Securities Times[81]. - The company was recognized as a "Top Ten Family Trust Management Innovation Award" winner at the 2019 China Financial Innovation Forum, showcasing its innovative capabilities[95]. Risk Management and Compliance - The company emphasizes risk management and has outlined its strategies to address potential uncertainties in its annual report[5]. - The company is committed to strengthening compliance and risk management, implementing comprehensive risk management systems and internal controls[123]. - The company aims to leverage its Hong Kong listing platform to enhance its active management, marketing, risk control, and technological support capabilities[116]. Operational Efficiency - Operating expenses totaled RMB 1,133 million in 2019, a significant increase of 61.9% from RMB 700 million in 2018[64]. - Employee costs increased by 50.9% in 2019 to RMB 189.4 million from RMB 125.5 million in 2018, mainly due to an increase in salaries and bonuses[199]. - The company is focusing on proactive management and innovation in trust operations to adapt to changing economic conditions and regulatory environments[131]. Market Presence and Expansion - The company has established a development pattern that radiates nationwide and extends internationally, enhancing its market presence[9]. - The company focuses on building a comprehensive financial service platform, holding significant stakes in various financial institutions[10]. - The number of physical outlets increased to six, with the establishment of a new branch in Jinan, enhancing the company's marketing capabilities[123].