NSC(SH:601990)2019-04-22 16:00Financial Performance - The company's operating revenue for 2018 was CNY 1,233,927,907.56, a decrease of 11.13% compared to CNY 1,388,473,496.81 in 2017[51]. - The net profit attributable to shareholders of the parent company was CNY 231,780,216.69, representing a decline of 43.55% from CNY 410,602,756.36 in the previous year[51]. - The net profit attributable to shareholders of the parent company for 2018 was CNY 217,696,631.64, a decrease of 46.48% compared to CNY 406,744,610.60 in 2017[52]. - The total assets increased by 5.42% to CNY 24,775,139,185.20 at the end of 2018, compared to CNY 23,501,546,945.82 at the end of 2017[52]. - The total liabilities decreased slightly by 0.20% to CNY 14,072,870,413.86 at the end of 2018, compared to CNY 14,101,292,180.82 at the end of 2017[52]. - The basic earnings per share for 2018 was CNY 0.09, down 47.06% from CNY 0.17 in 2017[53]. - The weighted average return on equity decreased to 2.32% in 2018, down 2.10 percentage points from 4.42% in 2017[53]. - The company's financial performance indicates a need for strategic reassessment to address the declining profit margins and revenue trends[51]. Capital Structure and Dividends - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares, totaling 274,901,950.30 RMB, which accounts for 118.60% of the net profit attributable to shareholders for the year 2018[4]. - The registered capital increased to 2,749,019,503 RMB from 2,473,999,503 RMB in the previous year, reflecting a growth of approximately 11.1%[14]. - The company intends to increase its capital reserve by converting 2 shares for every 10 shares held, totaling 549,803,901 shares to be issued[4]. - The proposed profit distribution plan for 2018 includes a cash dividend of 1.00 RMB per 10 shares, totaling 274,901,950.30 RMB[158]. - The net profit attributable to ordinary shareholders for 2018 was 231,780,216.69 RMB, with a profit distribution ratio of 118.60%[158]. - The company has a cash dividend policy that mandates a minimum of 20% of distributable profits to be distributed as cash dividends when certain conditions are met[156]. - In mature stages without significant capital expenditures, the cash dividend proportion should be at least 80%[156]. Business Operations and Expansion - The company has a comprehensive range of business qualifications, allowing it to engage in various financial services, including securities underwriting and financial consulting[15]. - The company has received various qualifications for its business operations, including securities brokerage and asset management, enhancing its service capabilities[15]. - The company is expanding its footprint in various provinces to enhance market reach[43]. - The strategic focus on regional expansion aims to capture a larger market share in the securities sector[43]. - The company has a total of 95 securities business departments as of the end of the reporting period[43]. - The company has expanded its branch network, with new offices opened in cities such as Nanjing and Jiangxi in 2016, and Zhejiang in 2018[48]. - The company opened 10 new branches and relocated 7 existing offices during the reporting period, enhancing its market presence[87]. Risk Management - The company faces significant risks including policy risk, market risk, credit risk, liquidity risk, and operational risk, which could impact its performance[7]. - The company aims to enhance its risk management and compliance systems, establishing a five-level compliance and risk management framework[75]. - The company has established a comprehensive compliance and risk management system to mitigate risks, including the implementation of the Securities Company Compliance Management Measures[130]. - Market risks primarily arise from fluctuations in securities prices, interest rates, and foreign exchange rates, with a focus on equity investments and derivatives[130]. - The company employs sensitivity analysis and stress testing to assess its market risk exposure regularly[131]. - The company has implemented a real-time monitoring system for unusual trading activities to mitigate brokerage-related credit risks[135]. Community Engagement and Social Responsibility - The company actively engaged in poverty alleviation by donating a "one million training scholarship fund" and a "one million entrepreneurship guarantee fund" to Ningxia Tongxin County[179]. - A total of RMB 603.92 million was invested in poverty alleviation efforts, with 973 registered impoverished individuals lifted out of poverty[183]. - The company donated RMB 3 million to build an employment poverty alleviation garment processing workshop in Li Bao Village, expected to help over 300 local workers achieve employment[180]. - The company has been recognized as an "Advanced Unit in Poverty Alleviation Work" by Tongxin County[183]. - The company aims to enhance its community support by organizing visits and providing material assistance to impoverished households during important holidays[186]. Compliance and Governance - The company has established a commitment to disclose information regarding any related party transactions[160]. - The company will ensure that any related party transactions are conducted fairly and transparently, adhering to market principles[160]. - The governance structure includes a decision-making mechanism that ensures compliance with regulatory changes and effective risk management[129]. - The company has confirmed that it will not use its controlling position to infringe upon the rights of other shareholders[160]. - The company has not faced any risks of suspension or termination of listing during the reporting period[170]. Future Outlook and Strategy - The company's future plans and strategies are subject to market conditions and regulatory changes, emphasizing the need for risk awareness among investors[5]. - The company is positioned to benefit from ongoing capital market reforms, which may provide new growth opportunities despite increasing competition in the industry[71]. - Future growth strategies may include further acquisitions or partnerships to strengthen market position[43]. - The company aims to transform into a first-class financial enterprise with a focus on "scale, efficiency, performance, and distinctiveness," emphasizing the importance of investor suitability management and innovation in services and operations[122].