Minsheng Holdings(SZ:000416)2019-03-28 16:00Financial Performance - The company's operating revenue for 2018 was ¥80,611,255.76, representing a 12.87% increase compared to ¥71,418,431.28 in 2017[16]. - The net profit attributable to shareholders decreased by 26.57% to ¥19,983,416.04 from ¥27,213,804.60 in the previous year[16]. - The net profit after deducting non-recurring gains and losses increased by 42.60% to ¥14,960,241.61, up from ¥10,491,202.73 in 2017[16]. - The net cash flow from operating activities was negative at -¥58,733,930.72, a decline of 267.77% compared to -¥15,970,459.49 in 2017[16]. - The total assets at the end of 2018 were ¥919,761,485.28, a decrease of 2.44% from ¥942,772,512.15 at the end of 2017[16]. - The net assets attributable to shareholders were ¥871,964,106.98, down 0.43% from ¥875,772,634.32 in 2017[16]. - The basic earnings per share decreased by 26.56% to ¥0.0376 from ¥0.0512 in 2017[16]. - The weighted average return on equity was 2.30%, down 0.82 percentage points from 3.12% in 2017[16]. - The company reported a total of ¥5,023,174.43 in non-recurring gains and losses for 2018, compared to ¥16,722,601.87 in 2017[20]. - The company achieved a consolidated revenue of CNY 80.61 million in 2018, representing a year-on-year increase of 12.87%, with the pawn business contributing CNY 70.48 million, up 15.15%[32][36]. - The net profit attributable to shareholders for 2018 was CNY 19.98 million, a decline of 26.57% compared to the previous year, resulting in earnings per share of CNY 0.0376, down 26.56%[32]. - The weighted average return on equity was 2.30%, a decrease of 0.82 percentage points year-on-year[32]. Dividend Distribution - The profit distribution plan approved by the board is to distribute a cash dividend of 0.30 RMB per 10 shares to all shareholders, based on a total of 531,871,494 shares[5]. - The cash dividend for 2018 represents 79.85% of the net profit attributable to ordinary shareholders, which was 19,983,416.04 yuan[77]. - The company has maintained a consistent cash dividend policy over the past three years, with cash dividends of 0.50 yuan per 10 shares for 2016 and 2017[74]. - The company plans to distribute a cash dividend of 0.30 yuan per 10 shares based on a total share capital of 531,871,494 shares as of December 31, 2018, amounting to a total cash dividend of 15,956,144.82 yuan[75]. - The company has not made any adjustments to its dividend policy during the reporting period, adhering to the established profit distribution plan[73]. Business Operations and Strategy - The company underwent several name changes and business focus shifts, with the current main business being pawn and insurance brokerage services[14]. - The company has expanded its business scope to include pawn and insurance brokerage services since acquiring Beijing Minsheng Pawn and Minsheng Insurance Brokerage in 2014[14]. - The company continues to operate in the pawn business and insurance brokerage, with no significant changes in its main business activities during the reporting period[23]. - The company is actively adjusting its development model to ensure stable growth in its main business areas, including pawn and insurance brokerage[67]. - The company is focusing on optimizing its business structure and enhancing service levels to improve market competitiveness[68]. - The company plans to focus on optimizing and preventing risks in 2019, while steadily advancing existing businesses and enhancing internal adjustments[66]. - The company recognizes the challenges posed by complex domestic and external economic conditions, including trade tensions and financial regulations[66]. - The company aims to improve employee motivation and organizational efficiency through a refined incentive mechanism[67]. Risk Management - The company faced various risks including macroeconomic risk, credit risk, market competition risk, and securities investment risk, which are detailed in the section discussing future development outlook[5]. - The company maintained a strong focus on risk management, with no major risk events occurring during the year, and received a "B" rating for information disclosure from the Shenzhen Stock Exchange[32]. - The company has identified various risks, including macroeconomic and credit risks, and is taking steps to mitigate these through enhanced project analysis and internal controls[68]. - The company reduced its investment in the secondary stock market and increased investments in bonds and trust products to mitigate the impact of market volatility on performance[33]. Corporate Governance - The company is committed to improving corporate governance and investor relations to enhance market image and investor confidence[72]. - The company has a structured approach to employee career development and training[165]. - The company has a diverse board with members holding significant expertise in finance, law, and management, including independent directors with backgrounds in accounting and economics[155][156]. - The company is actively involved in corporate governance, with a structured board of directors and supervisory roles to ensure compliance and oversight[154]. - The audit committee played a crucial role in reviewing annual audit reports and ensuring the integrity of financial disclosures[178]. - The internal control evaluation report indicated that 96.71% of the total assets and 100% of the total revenue of the evaluated units were included in the consolidated financial statements[181]. - No major internal control deficiencies were identified during the reporting period, indicating effective internal governance[181]. Legal Matters - The company is involved in a lawsuit with Qingdao Yutai Real Estate Development Co., Ltd., claiming a total amount of RMB 93,797,687 related to a property purchase[89]. - The court ruled that the actual payment made by the company was RMB 88,228,262, which differs from the initial claim[89]. - The company has filed an appeal against the court's decision, seeking confirmation of the actual payment and compensation for economic losses[89]. - The company incurred litigation costs of RMB 777,925 and a preservation fee of RMB 5,000, which it is responsible for[89]. - The company does not expect the lawsuit's outcome to significantly impact its net profit[89]. Employee and Management Information - The total remuneration for directors and senior management during the reporting period amounted to CNY 598.99 million[161]. - The company employed a total of 51 staff members, with 19 in sales, 10 holding master's degrees, and 33 with bachelor's degrees[163]. - The company has a competitive salary and benefits system, emphasizing performance-based incentives to enhance employee motivation[164]. - The company provided various training opportunities, including new employee training and management skills enhancement[165]. - The board of directors and senior management remuneration is determined based on company performance and industry standards[160]. Financial Management - The company has entrusted CNY 21,950,000 in financial management, with an outstanding balance of CNY 14,900,000 and no overdue amounts[108]. - The company engaged in high-risk entrusted financial management, with a total of CNY 10,600,000 in trust products, yielding an expected annual return of 8.10%[111]. - The company has a total of CNY 4,300,000 in trust funds allocated for real estate development in Beijing[112]. - The company’s financial management strategy includes investing in fixed-income financial products[112]. - The company has no overdue receivables from its entrusted financial management activities[108]. Shareholder Information - The company had a total of 243,615 restricted shares at the beginning of the period, which decreased to 230,396 by the end of the period[136]. - The largest shareholder, China Oceanwide Holdings Group Co., Ltd., holds 22.56% of the shares, totaling 119,981,428 shares[139]. - The company reported a total of 39,831 shareholders at the end of the reporting period[138]. - The top 10 shareholders did not engage in any repurchase transactions during the reporting period[140]. - The actual controller, Lu Zhqiang, has held significant positions in various companies, including Vice Chairman of China Minsheng Bank[143].