2019-03-28 16:00Financial Performance - In 2018, the company's operating revenue was CNY 11,321,611,555.03, a decrease of 15.21% compared to CNY 13,353,213,641.86 in 2017[42]. - The net profit attributable to shareholders of the parent company for 2018 was CNY 4,424,985,940.97, down 23.52% from CNY 5,785,955,137.26 in 2017[42]. - Basic earnings per share decreased by 30.25% to CNY 0.5408 in 2018 from CNY 0.7753 in 2017[43]. - The weighted average return on net assets fell by 2.81 percentage points to 5.58% in 2018 from 8.39% in 2017[43]. - The company's total operating revenue was CNY 11.322 billion, a decrease of 15.21% compared to the previous year[106]. - The net profit attributable to shareholders was CNY 4.425 billion, down 23.52% year-on-year[106]. Assets and Liabilities - The total assets at the end of 2018 amounted to CNY 304,930,704,832.13, reflecting an increase of 6.75% from CNY 285,643,555,039.46 at the end of 2017[42]. - The total liabilities at the end of 2018 were CNY 224,138,350,633.84, which is an increase of 8.64% from CNY 206,309,850,626.72 in 2017[42]. - The equity attributable to shareholders of the parent company at the end of 2018 was CNY 80,722,846,394.07, a slight increase of 1.88% from CNY 79,230,149,275.70 in 2017[42]. - Total assets increased to CNY 671,301 million in 2018, up 20.8% from CNY 555,662 million in 2017[146]. - The company's total liabilities amounted to CNY 2,241.38 billion at the end of 2018, reflecting an increase of CNY 17.83 billion or 8.64% from the previous year[125]. Capital and Shareholder Information - The profit distribution plan for 2018 proposes a cash dividend of 2.64 RMB per 10 shares, totaling approximately 1.77 billion RMB, which accounts for 39.97% of the net profit attributable to shareholders of the parent company[4]. - The registered capital of the company remains at CNY 6,699,409,329.00, unchanged from the previous year[14]. - The registered capital of the company increased from 1.5 billion RMB to 8 billion RMB after introducing 11 new shareholders in 1998[26]. - The company completed its initial public offering (IPO) of A-shares in November 2009, raising a net amount of 10.883 billion RMB after deducting issuance costs[29]. - The company issued H-shares in October 2016, raising a total of HKD 10.695 billion, equivalent to approximately 8.947 billion RMB after deducting issuance costs[29]. Business Qualifications and Market Position - The company holds multiple business qualifications, including credit derivatives and oil futures market-making, obtained in December 2018 and October 2018 respectively[15][16]. - The company has expanded its qualifications to include copper options market-making and OTC options primary dealer status, both acquired in 2018[16]. - The company has been authorized for cross-border business and credit risk mitigation tools, enhancing its operational capabilities in the financial market[16]. - The company has a comprehensive range of qualifications for various financial services, including asset management and securities trading, with several qualifications obtained as early as 2001[19]. - The company has maintained its status as a member of major stock exchanges, including Shanghai and Shenzhen, ensuring its competitive position in the market[15]. Risk Management - The company faced various risks including regulatory changes, credit risk from counterparties, market risk from adverse market changes, and liquidity risk due to potential funding shortages[6]. - The company emphasizes risk management with a comprehensive framework that includes a five-tier risk management structure to address market, credit, operational, and liquidity risks[167]. - The company has established a comprehensive risk management system, including market risk, credit risk, operational risk, liquidity risk, and reputation risk, with clear boundaries and general principles for each type of risk[172]. - The risk management quantitative indicator system includes risk appetite and tolerance metrics, guiding resource allocation towards high-risk-return businesses, enhancing overall risk management and corporate value[173]. - The company has implemented a liquidity risk management policy, focusing on maintaining a reserve of high-quality liquid assets[200]. Market Trends and Challenges - The average daily trading volume of the Shanghai and Shenzhen stock markets was CNY 391.228 billion, a year-on-year decrease of 17.63%[60]. - The A-share market saw a significant decline in 2018, with the Shanghai Composite Index down 24.59% and the Shenzhen Composite Index down 33.25%[97]. - The company faces challenges including economic slowdown, regulatory pressures, and the need for digital transformation in response to evolving customer demands[161]. - The securities industry is undergoing a restructuring phase characterized by a "survival of the fittest" approach, leading to increased concentration among large brokerages[158]. Strategic Initiatives - The company plans to implement a long-term development strategy focusing on investment banking and enhancing institutional client services from 2019 to 2023[65]. - The company aims to enhance its core competitiveness and focus on innovative financial technology applications in the coming years[105]. - The company plans to leverage opportunities in innovative business areas such as the Sci-Tech Innovation Board, CDR, and cross-border services while advancing financial technology initiatives[164]. - The company has actively pursued reforms to optimize human resources and organizational structure, including global recruitment for executive positions[65]. - The company aims to enhance its comprehensive competitiveness and enter the top five in the industry by focusing on customer-centric strategies and implementing a transformation strategy from 2019 to 2023[162].