Guosen Securities(SZ:002736)2019-04-19 16:00Financial Performance - Guosen Securities reported a significant increase in revenue, reaching RMB 10 billion, representing a year-over-year growth of 15%[31]. - The company’s net profit for the year was RMB 2 billion, up 20% compared to the previous year[31]. - The company's consolidated revenue for 2018 was ¥1,003,093.19 million, a decrease of 15.87% compared to ¥1,192,361.02 million in 2017[41]. - The net profit attributable to shareholders for 2018 was ¥342,339.66 million, down 25.17% from ¥457,477.76 million in 2017[41]. - The company reported a net profit of ¥329,392.12 million for the parent company in 2018, down 24.56% from ¥436,653.11 million in 2017[42]. - The company achieved a net income of 205 million yuan from financial advisory services in 2018, a decrease of 4.21% year-on-year[87]. - The investment banking business generated revenue of 1.1 billion yuan in 2018, a decrease of 48.18% year-on-year[78]. - The asset management business generated revenue of 362 million yuan, a year-on-year decrease of 11.07%[96]. Business Operations and Structure - The company’s main business scope includes securities brokerage, investment consulting, and asset management, with no changes reported since its listing[9]. - The company has established a comprehensive service model in investment banking, covering public and private financing, M&A advisory, and market-making services[56]. - The company has multiple branches, including Shenzhen Tai Jiu Branch established on December 29, 2015, and Guangzhou Branch established on August 13, 2009[30]. - The company has established 217 branches, including 52 subsidiaries and 165 securities business departments by the end of the reporting period[139]. - The company has a total of 165 securities business departments distributed across 113 cities and regions in China[34]. Risk Management - The company has established a comprehensive internal control system and risk management framework to mitigate market, credit, operational, and liquidity risks[2]. - The company has implemented a multi-level internal control and risk management system for innovative businesses to ensure risks are manageable[153]. - The company has established a risk management framework with a focus on net capital and liquidity, ensuring compliance with regulatory standards[169]. - The company has conducted multiple stress tests in 2018, including one group stress test and two annual comprehensive stress tests, confirming that risk control indicators remained within safe limits[155]. - The company has established a risk management quantitative indicator system to guide resource allocation towards high-risk-return businesses[165]. Capital and Funding - The company reported a total registered capital of 8.2 billion RMB and a net capital of 39.733 billion RMB as of December 31, 2018[6]. - The company issued subordinated debt in May 2018, raising a total of 1.1 billion yuan, which contributed 550 million yuan to net capital[156]. - The company has secured over CNY 200 billion in comprehensive credit from various commercial banks, enhancing its financing capabilities[133]. - The company is actively pursuing capital replenishment through non-public stock issuance and bond issuance to support business innovation[156]. Shareholder and Dividend Information - The profit distribution plan for 2018 proposes a cash dividend of 1.20 RMB per 10 shares, totaling approximately 984 million RMB to be distributed to shareholders[2]. - The company has a consistent cash dividend policy, aiming to distribute at least 20% of the available cash profit annually, with a minimum of 30% over any three consecutive years[180]. - The cash dividend per 10 shares is set at ¥1.20 (tax included), with a total distribution of ¥984,000,000[187]. - The company retained undistributed profits of ¥15,749,587,096.19 to be carried forward to the next year[187]. Compliance and Regulatory Matters - The company operates under the supervision of the China Securities Regulatory Commission and has not experienced any changes in its controlling shareholder during the reporting period[9]. - The company has committed to maintaining independence in assets, business, finance, personnel, and institutions as part of its long-term commitments[188]. - The company has established a plan to ensure compliance with all regulatory requirements and commitments made to shareholders[192]. - The company has not reported any unfulfilled commitments beyond the due date during the reporting period[193]. Future Plans and Strategic Initiatives - Guosen Securities plans to expand its market presence by opening 10 new branches across major cities in China by the end of 2019[32]. - The company is investing in new technology, with a budget of RMB 500 million allocated for the development of a digital trading platform[32]. - The company plans to enhance its compliance and risk control measures while expanding its international business operations[62]. - The company plans to focus on high-tech industries and strategic emerging industries for IPOs in 2019, aiming to enhance client engagement and service offerings[81]. - The company is actively pursuing international business opportunities, leveraging the Hong Kong market and exploring cross-border mergers and acquisitions[152].