Hongta Securities(SH:601236)2020-03-29 16:00Financial Performance - The company's operating revenue for 2019 was CNY 2,065,728,507.80, representing a 71.94% increase compared to CNY 1,201,433,406.34 in 2018[28]. - The net profit attributable to shareholders of the parent company reached CNY 837,541,304.24, a 116.72% increase from CNY 386,464,525.52 in the previous year[28]. - The total assets at the end of 2019 amounted to CNY 45,460,951,094.92, reflecting a 66.01% increase from CNY 27,384,429,392.72 at the end of 2018[28]. - The total liabilities increased by 100.94% to CNY 31,841,163,154.02 from CNY 15,846,444,707.30 in 2018[28]. - The basic earnings per share for 2019 was CNY 0.24, doubling from CNY 0.12 in 2018[29]. - The weighted average return on equity rose to 6.78%, an increase of 3.30 percentage points from 3.48% in 2018[29]. - The company recorded a total comprehensive income of CNY 1,584,432.35 in 2019, compared to a loss of CNY -7,545,314.09 in 2018[28]. Capital Structure - The registered capital increased to 3,633,405,396 RMB from 3,269,405,396.03 RMB in the previous year[10]. - The net capital at the end of the reporting period was 15,024,180,262.91 RMB, up from 12,440,241,551.29 RMB year-over-year[10]. - The company’s total share capital as of December 31, 2019, was 3,633,405,396 shares[115]. - The company issued 364 million new ordinary shares on June 24, 2019, increasing total share capital from 3,269.41 million shares to 3,633.41 million shares[156]. Business Operations - The company operates in various sectors including securities brokerage, self-operated securities, and securities investment consulting[10]. - The company has obtained multiple business qualifications, including qualifications for foreign currency securities brokerage and securities investment fund distribution[11]. - The company’s main business activities are significantly influenced by the performance of the securities industry and regulatory policies[6]. - The company is actively involved in securities investment fund distribution and financial product sales, enhancing its service offerings[26]. Risk Management - The company has a comprehensive risk management framework addressing policy, compliance, market, credit, liquidity, operational, and reputational risks[6]. - The company has established a minimum cash reserve limit to ensure liquidity, alongside a robust emergency plan for liquidity events[98]. - The company emphasizes the importance of compliance management and internal controls to mitigate operational risks[99]. - The company has implemented a credit risk internal rating system, which includes a credit risk management system and internal rating models[96]. Dividend Policy - The proposed cash dividend for 2019 is 1 RMB per 10 shares, totaling 363,340,539.60 RMB, which accounts for 43.38% of the net profit attributable to shareholders[4]. - The company’s cash dividend policy varies based on its development stage, with a minimum cash dividend ratio of 80% for mature companies without significant capital expenditure[107]. - The board of directors must submit the dividend distribution plan to the shareholders' meeting for approval, requiring a majority vote from the board and two-thirds approval from independent directors[109]. Corporate Governance - The organizational structure includes a board of directors, supervisory board, and various committees such as the audit committee and risk control committee[18]. - The board of directors is responsible for overall risk management, including approving risk management policies and assessing risk tolerance[87]. - The management team is tasked with implementing risk management strategies and ensuring effective communication between departments[89]. - The company has a strong focus on corporate governance, as evidenced by the appointment of independent directors to ensure compliance and oversight[180]. Market Expansion - The company is committed to expanding its presence in key markets, as evidenced by the establishment of new offices in major cities[23]. - The company plans to expand its international influence and business diversification by actively pursuing overseas opportunities and enhancing collaboration between domestic and international operations[81]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 30% increase in market share within the next two years[193]. Social Responsibility - The company actively engaged in poverty alleviation efforts, establishing long-term support mechanisms in various counties and improving local infrastructure and education[142]. - The company allocated an additional budget of 760,000 RMB for poverty alleviation projects in 2019, with a total actual investment of 1.57 million RMB[144]. - The company provided 100,240 RMB for targeted poverty alleviation efforts, helping 73 registered impoverished individuals escape poverty[146][147]. Audit and Compliance - The company engaged Lixin Certified Public Accountants for auditing services, ensuring compliance and financial accuracy[27]. - The company appointed Lixin Accounting Firm as the auditor for 2019, with an audit fee of RMB 600,000 and a 7-year auditing history[128]. - There were no significant litigation or arbitration matters during the reporting period, with no cases exceeding RMB 10 million or 10% of the latest audited net assets[130]. Future Outlook - The company provided a future outlook with a revenue guidance of 1.5 billion for 2020, indicating a growth target of 25%[184]. - The company plans to invest 100 million in research and development for new technologies in the upcoming fiscal year[184]. - The management highlighted a focus on improving customer service, aiming for a 20% reduction in response time by the end of 2020[184].