2019-02-27 16:00Financial Performance - The company's operating revenue for 2018 was CNY 15,277,425,925.59, representing a 14.29% increase compared to CNY 13,367,782,979.84 in 2017[21]. - The net profit attributable to shareholders for 2018 was CNY 4,160,188,689.17, a decrease of 9.55% from CNY 4,599,683,411.82 in 2017[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses for 2018 was CNY 4,073,374,217.14, a decrease of 9.45% compared to 2017[22]. - The total assets at the end of 2018 reached CNY 347,725,034,856.60, representing a 15.93% increase from the end of 2017[22]. - The company's operating income for 2018 was 15.277 billion yuan, with net commission and fee income of 5.473 billion yuan, a decrease of 28.45% year-on-year[46][47]. - The company's cash flow from operating activities for 2018 was CNY -13,882,156,698.20, indicating a significant cash outflow compared to CNY -30,585,421,116.43 in 2017[22]. - The diluted earnings per share for 2018 was CNY 0.19, down 17.39% from CNY 0.23 in 2017[22]. - The weighted average return on equity decreased by 2.42 percentage points to 6.19% in 2018 from 8.61% in 2017[22]. - The company's total revenue for 2018 reached 15.28 billion CNY, representing a year-on-year growth of 14.29%[56]. - The company's total assets included ¥66.27 billion in repurchase financial assets, which is 19.06% of total assets, an increase of 4.37 percentage points due to growth in stock and bond pledge repurchase business[59]. Capital Structure and Financing - The company has a registered capital of RMB 22,535,944,560[14]. - The company completed a private placement of 2,479,338,842 shares of ordinary shares, which were listed on the Shenzhen Stock Exchange on January 30, 2018[114]. - The company raised RMB 11,999,999,995.28 from a private placement of shares at a price of RMB 4.84 per share, resulting in a net amount of RMB 11,972,900,760.32 after expenses[78]. - The total amount of funds raised from bond issuance was RMB 125 billion, with the first phase raising RMB 50 billion at a coupon rate of 3.45% and the second phase raising RMB 75 billion with rates of 2.90% and 3.20% for different maturities[74]. - The company has a strong financing capability, utilizing various methods including interbank borrowing, bond repurchase, and issuing corporate bonds, with good credit records and sufficient bank credit limits[67]. - The company has maintained a AAA credit rating for its bonds, with stable outlooks as per the latest credit rating report[170]. - The company has secured credit lines totaling CNY 402.8 billion from nearly 100 banks, with the top 10 banks accounting for approximately CNY 200.2 billion[174]. - The company has opened special accounts for raised funds at designated banks to ensure compliance with usage plans[169]. Risk Management - The company emphasizes the importance of risk factors such as legal compliance, market, credit, liquidity, and operational risks[6]. - The company has established a comprehensive risk management system and liquidity risk management mechanism, maintaining sufficient liquidity reserves with regulatory indicators such as liquidity coverage ratio and net stable funding ratio meeting standards[67]. - The company has implemented measures to enhance liquidity risk management, including expanding cooperation with financial institutions and conducting liquidity risk stress tests[4]. - The company has developed a credit risk internal rating system to strengthen client concentration management and improve risk assessment processes[4]. - The company has established a dynamic risk control indicator monitoring mechanism, ensuring independent monitoring of risk control indicators related to net capital and liquidity[97]. - The company has implemented measures to strengthen legal compliance and risk management in response to regulatory changes and market conditions[92]. Corporate Governance and Compliance - The company has been audited by KPMG Huazhen and received a standard unqualified audit opinion[3]. - The company has engaged KPMG Huazhen LLP as its annual audit firm for the 2018 fiscal year, with audit fees amounting to 3.5 million RMB[115]. - The company has committed to avoiding competition and maintaining separation of business operations as part of its merger commitments[110]. - The company has maintained compliance with commitments to reduce and regulate related party transactions since July 18, 2014[112]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties[115]. - The company is actively enhancing its due diligence processes and compliance awareness to prevent future regulatory issues[183]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.50 per 10 shares, totaling RMB 1,126,797,228.00, based on a total share capital of 22,535,944,560 shares as of December 31, 2018[3]. - The cash dividend for 2018 represented 27.09% of the net profit attributable to shareholders, which was RMB 4,160,188,689.17[107]. - The remaining undistributed profit for 2018 was RMB 1,366,147,800.49, which will be carried over to the next year[108]. - The profit distribution policy states that cash dividends should account for at least 30% of the average distributable profit over three consecutive years[102]. Subsidiaries and Business Operations - The company operates through subsidiaries providing various securities services, including brokerage and investment consulting[14]. - The company has a total of 10 subsidiaries, with various business operations including securities brokerage, investment consulting, and asset management[84]. - The company’s subsidiary Shenwan Hongyuan Futures Co., Ltd. reported total assets of RMB 12.83 billion and net assets of RMB 2.38 billion[86]. - The company is actively involved in investment management and consulting services through its subsidiaries[86]. Social Responsibility and Community Engagement - The company invested over 44 million yuan in poverty alleviation efforts across six counties and one village in 2018[139]. - The company has implemented a "Party Building + Poverty Alleviation" model, investing 1 million yuan to support grassroots party organization activities in Huaning County[139]. - The company has engaged in various educational support initiatives, including donating books and organizing aid activities for impoverished students[139]. - The company facilitated over 1 billion yuan in financing for enterprises in impoverished regions through the New Third Board[145]. Legal Matters - The company is involved in multiple legal disputes, including a claim for RMB 7,182,778.4 in debt and interest totaling approximately RMB 36,215,820 from Shanghai Metallurgical Company[118]. - The company has initiated legal action against Hunan High-tech Investment Wealth Management Co., Ltd. for a breach of a pledged securities repurchase agreement, with a principal amount of RMB 230,912,511.69[120]. - The company is seeking repayment of RMB 300,000,000 in principal and interest from Zhongke Construction Development Co., Ltd. due to a trust loan default[120]. - The company successfully defended against a claim for CNY 40,128,491 related to securities trading losses, with the court ruling in favor of the company[125]. Market Position and Strategy - The company aims to enhance its capital strength through H-share listings and improve collaboration between investment and securities businesses[92]. - The company is actively exploring international business opportunities and aims to become a well-structured investment banking group[36]. - The company has achieved a leading position in the securities industry, recognized as a Class A AA-rated securities company for four consecutive years since its establishment in 2015[33]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of 500 million RMB allocated for potential deals[192].