Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information | |
Entity Registrant Name | Yintech Investment Holdings Ltd |
Entity Central Index Key | 1,661,125 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 1,413,951,095 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Assets | |||
Cash | $ 106,125 | ¥ 690,478 | ¥ 1,541,241 |
Entrusted bank balances held on behalf of customers | 23,124 | 150,452 | |
Short-term investments | 186,282 | 1,212,006 | 218,940 |
Deposits with clearing organizations | 177 | 1,152 | 265,807 |
Derivative assets | 45,569 | ||
Equipment and leasehold improvements | 6,027 | 39,214 | 37,594 |
Deferred tax assets | 5,292 | 34,431 | 59,551 |
Goodwill | 168,602 | 1,096,972 | 1,069,603 |
Accounts receivable | 26,306 | 171,156 | 109,497 |
Intangible assets | 66,702 | 433,983 | 417,257 |
Other assets | 47,843 | 311,281 | 154,822 |
Total assets | 636,480 | 4,141,125 | 3,919,881 |
Liabilities and Shareholders' Equity | |||
Accounts payable (including accounts payable of the consolidated variable interest entities ("VIE") and VIE's subsidiaries without recourse to the Company of nil and RMB 1,985 thousand as of December 31, 2016 and 2017, respectively) | 30,358 | 197,516 | 15,274 |
Accrued employee benefits (including accrued employee benefits of the consolidated VIE and VIE's subsidiaries without recourse to the Company of nil and RMB 12,299 thousand as of December 31, 2016 and 2017, respectively) | 21,838 | 142,085 | 231,376 |
Income tax payable (including income tax payable of the consolidated VIE and VIE's subsidiaries without recourse to the Company of nil and RMB 5,522 thousand as of December 31, 2016 and 2017, respectively) | 11,290 | 73,458 | 145,049 |
Deferred tax liability | 16,340 | 106,315 | 108,694 |
Other liabilities (including other liabilities of the consolidated VIE and VIE's subsidiaries without recourse to the Company of nil and RMB 8,625 thousand as of December 31, 2016 and 2017, respectively) | 7,002 | 45,553 | 103,507 |
Total liabilities | 86,828 | 564,927 | 603,900 |
Ordinary shares (US$0.00001 par value; 3,000,000,000 shares authorized, 1,377,708,575 shares issued and outstanding as of December 31, 2016; 1,425,282,175 shares issued and 1,413,951,095 shares outstanding as of December 31, 2017) | 14 | 93 | 90 |
Treasury stock (nil and 11,331,080 shares as of December 31, 2016 and 2017, respectively) | (5,683) | (36,973) | |
Additional paid-in capital | 316,357 | 2,058,312 | 2,236,778 |
Retained earnings | 233,086 | 1,516,525 | 1,035,861 |
Accumulated other comprehensive income | 3,754 | 24,423 | 43,937 |
Total Yintech shareholders' equity | 547,528 | 3,562,380 | 3,316,666 |
Non-controlling interests | 2,124 | 13,818 | (685) |
Total stockholders' equity | 549,652 | 3,576,198 | 3,315,981 |
Commitments and contingencies | |||
Total liabilities and shareholders' equity | $ 636,480 | ¥ 4,141,125 | ¥ 3,919,881 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016CNY (¥)shares |
Accounts payable | ¥ 197,516 | ¥ 15,274 |
Accrued employee benefits | 142,085 | 231,376 |
Income tax payable | 73,458 | 145,049 |
Other liabilities | ¥ 45,553 | ¥ 103,507 |
Ordinary share, shares authorized | shares | 3,000,000,000 | 3,000,000,000 |
Ordinary share, shares issued | shares | 1,425,282,175 | 1,377,708,575 |
Ordinary shares, shares outstanding | shares | 1,413,951,095 | 1,377,708,575 |
Treasury Stock, Shares | shares | 11,331,080 | 0 |
Consolidated VIE and VIE's subsidiaries | ||
Accounts payable | ¥ | ¥ 1,985 | ¥ 0 |
Accrued employee benefits | ¥ | 12,299 | 0 |
Income tax payable | ¥ | 5,522 | 0 |
Other liabilities | ¥ | ¥ 8,625 | ¥ 0 |
COMBINED AND CONSOLIDATED STATE
COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2017CNY (¥)¥ / shares | Dec. 31, 2016CNY (¥)¥ / shares | Dec. 31, 2015CNY (¥)¥ / shares | |
Revenues | ||||
Commissions and fees, net | $ 337,915 | ¥ 2,198,575 | ¥ 2,547,043 | ¥ 990,698 |
Trading gains, net | 6,233 | 40,554 | 12,563 | 166,428 |
Interest and investment income | 831 | 5,406 | 4,365 | 4,443 |
Other revenues | 31,417 | 204,411 | 155,570 | 84,305 |
Revenues | 376,396 | 2,448,946 | 2,719,541 | 1,254,874 |
Expenses | ||||
Employee compensation and benefits | (163,926) | (1,066,553) | (839,024) | (388,168) |
Advertising and promotion | (65,301) | (424,865) | (554,291) | (221,859) |
Information technology and communications | (6,328) | (41,170) | (40,905) | (32,803) |
Occupancy and equipment rental | (19,009) | (123,680) | (76,594) | (41,950) |
Taxes and surcharges | (3,240) | (21,080) | (30,748) | (21,711) |
Intangible assets amortization | (8,691) | (56,547) | (19,081) | |
Other expenses | (12,066) | (78,509) | (107,766) | (54,164) |
Expenses | (278,561) | (1,812,404) | (1,668,409) | (760,655) |
Income before income taxes | 97,835 | 636,542 | 1,051,132 | 485,219 |
Income taxes | (26,060) | (169,556) | (125,430) | (82,204) |
Net income | 71,775 | 466,986 | 925,702 | 403,015 |
Less: Net loss attributable to non-controlling interests | (2,102) | (13,678) | (4,966) | |
Net income attributable to Yintech | $ 73,877 | ¥ 480,664 | ¥ 930,668 | ¥ 403,015 |
Earnings per share | ||||
Basic | (per share) | $ 0.05 | ¥ 0.34 | ¥ 0.79 | ¥ 0.40 |
Diluted | (per share) | $ 0.05 | ¥ 0.33 | ¥ 0.75 | ¥ 0.38 |
Other comprehensive income | ||||
Unrealized loss on available-for-sale investments, net of tax | $ (123) | ¥ (800) | ||
Foreign currency translation adjustment | (2,876) | (18,714) | ¥ 42,696 | ¥ 1,241 |
Comprehensive income | 68,776 | 447,472 | 968,398 | 404,256 |
Comprehensive income attributable to non-controlling interests | (2,102) | (13,678) | (4,966) | |
Comprehensive income attributable to Yintech | $ 70,878 | ¥ 461,150 | ¥ 973,364 | ¥ 404,256 |
COMBINED AND CONSOLIDATED STAT5
COMBINED AND CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Ordinary SharesUSD ($)shares | Ordinary SharesCNY (¥)shares | Treasury stockUSD ($)shares | Treasury stockCNY (¥)shares | Paid-in capitalCNY (¥) | Additional paid-in capitalUSD ($) | Additional paid-in capitalCNY (¥) | Retained earningsUSD ($) | Retained earningsCNY (¥) | Accumulated other comprehensive incomeUSD ($) | Accumulated other comprehensive incomeCNY (¥) | Equity attributable to non-controlling interestsUSD ($) | Equity attributable to non-controlling interestsCNY (¥) | USD ($)shares | CNY (¥)shares |
Balance at beginning of the period at Dec. 31, 2014 | ¥ 125,000 | ¥ 7,560 | ¥ 480,626 | ¥ 613,186 | |||||||||||
Net income | 297,822 | 297,822 | |||||||||||||
Initial Public Offering ("IPO) and private issuance to MeMeStar | ¥ 65 | 65 | |||||||||||||
Initial Public Offering ("IPO) and private issuance to MeMeStar (in shares) | shares | 1,000,000,000 | 1,000,000,000 | |||||||||||||
Share-based compensation | 28,214 | 28,214 | |||||||||||||
Dividend distribution | (831,876) | (831,876) | |||||||||||||
Others | (86) | (86) | |||||||||||||
Balance at end of the period at Nov. 17, 2015 | ¥ 65 | 125,000 | 35,688 | (53,428) | 107,325 | ||||||||||
Balance at end of the period (in shares) at Nov. 17, 2015 | shares | 1,000,000,000 | 1,000,000,000 | |||||||||||||
Balance at beginning of the period at Dec. 31, 2014 | 125,000 | 7,560 | 480,626 | 613,186 | |||||||||||
Net income | 403,015 | ||||||||||||||
Balance at end of the period at Dec. 31, 2015 | $ 65 | ¥ 65 | $ 257,098 | 257,098 | $ 105,193 | 105,193 | $ 1,241 | ¥ 1,241 | $ 363,597 | 363,597 | |||||
Balance at end of the period (in shares) at Dec. 31, 2015 | shares | 1,000,000,000 | 1,000,000,000 | |||||||||||||
Balance at beginning of the period at Nov. 17, 2015 | ¥ 65 | 125,000 | 35,688 | (53,428) | 107,325 | ||||||||||
Balance at beginning of the period (in shares) at Nov. 17, 2015 | shares | 1,000,000,000 | 1,000,000,000 | |||||||||||||
Net income | 105,193 | 105,193 | |||||||||||||
Reorganization | ¥ (125,000) | (35,688) | 53,428 | (107,260) | |||||||||||
Capital Contributions | 254,298 | 254,298 | |||||||||||||
Share-based compensation | 2,769 | 2,769 | |||||||||||||
Other comprehensive income | 1,241 | 1,241 | |||||||||||||
Others | 31 | 31 | |||||||||||||
Balance at end of the period at Dec. 31, 2015 | $ 65 | ¥ 65 | 257,098 | 257,098 | 105,193 | 105,193 | 1,241 | 1,241 | 363,597 | 363,597 | |||||
Balance at end of the period (in shares) at Dec. 31, 2015 | shares | 1,000,000,000 | 1,000,000,000 | |||||||||||||
Net income | 930,668 | ¥ (4,966) | 925,702 | ||||||||||||
Initial Public Offering ("IPO) and private issuance to MeMeStar | ¥ 11 | 660,155 | 660,166 | ||||||||||||
Initial Public Offering ("IPO) and private issuance to MeMeStar (in shares) | shares | 164,814,815 | 164,814,815 | |||||||||||||
Exercise of stock options and Vesting of RSUs | ¥ 1 | 10,754 | 10,755 | ||||||||||||
Exercise of stock options and Vesting of RSUs (in shares) | shares | 12,002,820 | 12,002,820 | |||||||||||||
Acquisition of subsidiaries | ¥ 13 | 1,146,239 | 1,146,252 | ||||||||||||
Acquisition of subsidiaries (in shares) | shares | 200,890,940 | 200,890,940 | |||||||||||||
Share-based compensation | 163,813 | 163,813 | |||||||||||||
Business Combination | 3,000 | 3,000 | |||||||||||||
Other comprehensive income | 42,696 | 42,696 | |||||||||||||
Acquisition of subsidiaries' shares from noncontrolling shareholders | (1,281) | 1,281 | |||||||||||||
Balance at end of the period at Dec. 31, 2016 | $ 90 | ¥ 90 | 2,236,778 | 2,236,778 | 1,035,861 | 1,035,861 | 43,937 | 43,937 | $ (685) | (685) | $ 3,315,981 | ¥ 3,315,981 | |||
Balance at end of the period (in shares) at Dec. 31, 2016 | shares | 1,377,708,575 | 1,377,708,575 | 1,377,708,575 | 1,377,708,575 | |||||||||||
Net income | 480,664 | (13,678) | $ 71,775 | ¥ 466,986 | |||||||||||
Exercise of stock options and Vesting of RSUs | ¥ 3 | 36,930 | 36,933 | ||||||||||||
Exercise of stock options and Vesting of RSUs (in shares) | shares | 47,573,600 | 47,573,600 | |||||||||||||
Disposal of a subsidiary | 5,474 | 5,474 | |||||||||||||
Stock repurchase | ¥ (36,973) | (36,973) | |||||||||||||
Stock repurchase (in shares) | shares | (11,331,080) | (11,331,080) | |||||||||||||
Share-based compensation | 169,717 | 169,717 | |||||||||||||
Dividend distribution | (385,113) | (385,113) | |||||||||||||
Business Combination | 22,707 | 22,707 | |||||||||||||
Other comprehensive income | (19,514) | (19,514) | |||||||||||||
Balance at end of the period at Dec. 31, 2017 | $ 14 | ¥ 93 | $ (5,683) | ¥ (36,973) | $ 316,357 | ¥ 2,058,312 | $ 233,086 | ¥ 1,516,525 | $ 3,754 | ¥ 24,423 | $ 2,124 | ¥ 13,818 | $ 549,652 | ¥ 3,576,198 | |
Balance at end of the period (in shares) at Dec. 31, 2017 | shares | 1,425,282,175 | 1,425,282,175 | (11,331,080) | (11,331,080) | 1,413,951,095 | 1,413,951,095 |
COMBINED AND CONSOLIDATED STAT6
COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | $ 71,775 | ¥ 466,986 | ¥ 925,702 | ¥ 403,015 |
Adjustments to reconcile net income to cash provided by operating activities: | ||||
Depreciation and amortization | 12,759 | 83,014 | 32,370 | 11,880 |
Gain on sale of equipment | (81) | (524) | (206) | (147) |
Fair value change of derivatives | 7,004 | 45,569 | (59,460) | 13,891 |
Realized gain on sale of available-for-sale investments | (5,901) | (38,392) | (10,695) | (8,190) |
Deferred tax expense/(benefit) | 5,411 | 35,206 | (50,347) | (1,988) |
Share-based compensation | 26,085 | 169,717 | 163,813 | 30,983 |
Imputed interest | (55) | |||
Gain from disposal of subsidiaries | (13,405) | (87,217) | (677) | |
Changes in operating assets and liabilities, net of acquisition: | ||||
(Increase)/decrease in deposits with clearing organizations | 39,788 | 258,875 | (25,903) | 17,314 |
Increase in other assets arising from operating activities | (19,835) | (74,052) | (8,411) | (21,228) |
Decrease in amount due from related parties | 1,800 | |||
Decrease in accounts payable | (12,054) | (78,427) | (1,562) | (19,511) |
Increase in accrued employee benefits | (435) | (2,828) | 85,451 | 27,973 |
Decrease in other liabilities arising from operating activities | (10,307) | (67,058) | (140,903) | (21,726) |
Increase/(decrease) in income taxes payable | (6,516) | (42,397) | 121,664 | (3,197) |
Net cash provided by operating activities | 94,288 | 668,472 | 1,030,836 | 430,814 |
Cash flows from investing activities: | ||||
Proceeds from sale of equipment | 72 | 467 | 1,469 | 2,183 |
Cash paid for purchase of equipment and leasehold improvements | (4,910) | (31,945) | (25,488) | (8,579) |
Cash paid for purchase of available-for-sale investments | (2,483,021) | (16,155,280) | (8,625,200) | (4,862,180) |
Cash received from sale of available-for-sale investments | 2,322,981 | 15,059,010 | 8,501,625 | 5,148,700 |
Issuance of loans to related parties | (40,000) | |||
Cash received from repayment of loans to related parties | 47,000 | |||
Payment for reorganization | (107,260) | |||
Payment for acquisition of subsidiaries, net of cash acquired | (17,035) | (110,834) | (119,413) | |
Cash received from disposal of subsidiaries | 14,144 | 92,024 | 541 | |
Net cash provided by/(used in) investing activities | (167,769) | (1,146,558) | (266,466) | 179,864 |
Cash flows from financing activities: | ||||
Cash acquired from acquisition | 6 | |||
Proceeds from capital contribution | 254,298 | |||
Proceeds from issuance of ordinary shares | 660,166 | 65 | ||
Proceeds from borrowings from related parties | 118,880 | |||
Repayment of borrowings from related parties | (118,880) | |||
Proceeds from exercise of options | 7,594 | 49,409 | ||
Dividends paid | (59,191) | (385,113) | (126,876) | (705,000) |
Purchase of treasury stock | (5,683) | (36,973) | ||
Net cash (used in)/provided by financing activities | (57,280) | (372,677) | 414,410 | (331,751) |
Net increase/(decrease) in cash | (130,761) | (850,763) | 1,178,780 | 278,927 |
Cash - beginning of year | 236,886 | 1,541,241 | 362,461 | 83,534 |
Cash - end of year | 106,125 | 690,478 | 1,541,241 | 362,461 |
Supplemental disclosure of cash flow information | ||||
Cash paid for income taxes | $ 9,646 | ¥ 134,276 | ¥ 54,113 | ¥ 87,949 |
DESCRIPTION OF BUSINESS AND ORG
DESCRIPTION OF BUSINESS AND ORGANIZATION | 12 Months Ended |
Dec. 31, 2017 | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | 1. DESCRIPTION OF BUSINESS AND ORGANIZATION Yintech Investment Holdings Limited (“Yintech”, or the “Company”) was incorporated under the laws of the Cayman Islands on November 4, 2015. Yintech and its subsidiaries (hereinafter the “Group”) primarily provided trading and investment services for online spot commodity trading through three exchanges, namely Shanghai Gold Exchange (“Shanghai Exchange”), Tianjin Precious Metals Exchange (“Tianjin Exchange”) and Guangdong Precious Metals Exchange (“Guangdong Exchange”) (collectively, the “Exchanges”) in the PRC. Among the three exchanges the Group operates on, Shanghai Exchange is established by the People’s Bank of China (“PBOC”), with the approval of the State Council of the PRC, and is the only national-level exchange for spot commodity trading in China. Tianjin and Guangdong Exchanges are provincial-level exchanges supervised by the Finance Office of Tianjin Municipal Government and the Department of Commerce of Guangdong Province, respectively. Six subsidiaries of the Group were comprehensive members of either Tianjin Exchange or Guangdong Exchange. As a comprehensive member of the Tianjin and Guangdong Exchanges, the Group earned commissions and fees on customers’ trades and served as the counterparty to customers’ trades. Therefore, the Group was exposed to market risk related to fluctuations of the prices of the underlying commodities that primarily consist of silver, palladium, platinum, copper, aluminum and nickel. In June 2016, Tianjin Exchange launched a new trading rule and a new trading system (the “New Mechanism”), under which the Group only took the broker role in customer deals and did not take positions any more. As a result, the Group started to only earn trading commissions in Tianjin Exchange. The new trading mechanism and the old version were in parallel run until the New Mechanism fully replaced the old mechanism by the end of 2016. The Group did not hold cash, securities, or property from customers that would be used to margin, guarantee, or secure any trades or contracts that result from customers’ order. On the Shanghai Exchange, the Group serves as an agent and do not hold principal positions. To a lesser extent, the Group also trades in physical commodity of raw silver. On April 24, 2017, Guangdong Exchange announced that it has adjusted its commodity trading business in light of new market development, and in particular, it terminated the trading of all the current products on the exchange on May 6, 2017. On June 2, 2017, Tianjin Exchange announced that it would adjust its commodity trading business in order to reduce trading risks. In particular, it suspended the opening of new trading positions and significantly tightened leverage requirement for all commodities (silver, palladium and platinum) traded on the exchange starting from June 12, 2017. The closing of existing trading positions was not affected. In August and November 2017, eight subsidiaries in total that provided customers with services for the trading of spot commodities on Guangdong Exchange and Tianjin Exchange were disposed. Starting from May 2017, the Group entered into brokerage agreements with several commodity futures brokers, through which the Group provides commodity futures trading service to its individual customers on silver and other precious metal and commodities on three leading future commodity exchanges in China, namely the Dalian Commodity Exchange (“Dalian Exchange”), Zhengzhou Commodity Exchange (“Zhengzhou Exchange”) and Shanghai Futures Exchange (“Shanghai Futures”) (collectively, the “Futures Commodity Exchanges”). The Futures Commodity Exchanges are supervised by China Securities Regulatory Commission (“CSRC”). The Group has also been extending its business scope into securities investment advisory and asset management services. As of December 31, 2017, Yintech has subsidiaries, VIEs and VIEs’ subsidiaries in countries and jurisdictions including the People’s Republic of China (“PRC”), Hong Kong, United States of America (“USA”), British Virgin Islands (“BVI”) and New Zealand (“NZ”). Details of the subsidiaries, VIEs and VIEs’ subsidiaries of the Company are set out below: Name of subsidiary Date of Paid % of equity Place of Shanghai Yin Sai Computer Technology Co., Ltd. (Yin Sai) (formerly known as Shanghai Yin Tian Xia Technology Co., Ltd.)* Incorporated on June 27, 2011 RMB 5 million 100% PRC Shanghai Yin Tian Xia Financial and Information Service Co., Ltd.* Incorporated on May 15, 2014 RMB 5 million 100% PRC Yintech Enterprise Co., Ltd. (formerly known as Win Yin Gold Investment Co., Ltd. (BVI))* Incorporated on September 29, 2014 USD 1 dollar 100% BVI Yintech Enterprise (HK) Investment Co., Ltd. (formerly known as Win Yin (HK) Gold Investment Co., Ltd.)* Incorporated on October 31, 2014 HKD 1 dollar 100% Hong Kong Shanghai Chun Xin Information Technology Co., Ltd. (formerly known as Shanghai Zu Ding Culture Communication Co., Ltd.) Incorporated on April 14, 2015 RMB 1 million 100% PRC Shanghai Yintech Investment Group Co., Ltd. (formerly known as Shanghai Yin Tian Xia Investment Management (Group) Co., Ltd.) Incorporated on April 14, 2015 USD 30 million 100% PRC Yintech Frontier Co., Ltd. Incorporated on November 5, 2015 USD 1 dollar 100% BVI Yintech Elements Co., Ltd. Incorporated on November 9, 2015 USD 1 dollar 100% BVI Shanghai Jin Dou Information Technology Co., Ltd. (“Jin Dou”) Incorporated on November 12, 2015 RMB 10 million 100% PRC Yintech Elements (HK) Co., Ltd. Incorporated on November 19, 2015 HKD 1 dollar 100% Hong Kong Name of subsidiary Date of Paid % of equity Place of Yintech Frontier (HK) Co., Ltd. Incorporated on November 19, 2015 HKD 1 dollar 100% Hong Kong Shanghai Jin Huan Industrial Co., Ltd. (“Jin Huan”) Incorporated on November 30, 2015 RMB 3.05 million 100% PRC Shanghai Jin Yi Information Technology Co., Ltd., (“Jin Yi”) Incorporated on December 4, 2015 RMB 10 million 100% PRC Shanghai Yi Shi Information Technology Co., Ltd. (‘‘Yi Shi’’) Incorporated on March 30, 2016 RMB 10 million 100% PRC Yintech Ventures Co., Ltd. Incorporated on June 1, 2016 USD 1 dollar 100% BVI Shanghai Yin He You Co., Ltd. (“Yin He You”) Acquired on June 1, 2016 RMB 5 million 100% PRC Yintech Gold Co., Ltd. Incorporated on June 16, 2016 USD 1 dollar 100% BVI Yintech Ventures (HK) Co., Ltd. Incorporated on June 21, 2016 HKD 1 dollar 100% Hong Kong Shanghai Li Xian Information Technology Co., Ltd. (‘‘Li Xian’’) Incorporated on July 26, 2016 — 100% PRC Shanghai Xie Luo Information Technology Co., Ltd. (‘‘Xie Luo’’) Incorporated on July 26, 2016 — 100% PRC Gold Master (HK) Co., Ltd.(“Gold Master HK”) Acquired on August 31, 2016 USD 3 million 100% Hong Kong Shanghai Ming Qin Information Technology Co., Ltd. (‘‘Ming Qin’’) Acquired on August 31, 2016 USD 3 million 100% PRC Shanghai Gold Master Network Financial Information Service Co., Ltd. (‘‘Gold Master’’) Acquired on August 31, 2016 RMB 84 million 100% PRC Name of subsidiary Date of Paid % of equity Place of Shanghai Gold Master Network Technology Co., Ltd. (‘‘Gold Master Network’’) Acquired on August 31, 2016 RMB 10 million 100% PRC Shanghai Xi Ben Sofware Technology Co., Ltd. (‘‘Xi Ben’’) Incorporated on September 12, 2016 — 100% PRC Yintech Innovation Co., Ltd. Incorporated on November 23, 2016 USD 1 dollar 100% BVI Yintech Financial Holdings Co., Ltd. Incorporated on December 12, 2016 USD 1 dollar 100% BVI Yintech Innovation Labs, LLC Incorporated on December 20, 2016 USD 0.5 million 100% USA Shanghai Die Xiao Information Technology Co., Ltd. (“Die Xiao”) Incorporated on December 27, 2016 RMB 1.85 million 100% PRC Shanghai Hai Fan Information Technology Co., Ltd. (“Hai Fan”) Incorporated on January 22, 2017 — 100% PRC Shanghai Hao Ken Information Technology Co., Ltd. (“Hao Ken”) Incorporated on February 23, 2017 RMB 0.2 million 100% PRC Shanghai Qian Cheng Industrial Co., Ltd. (“Qian Cheng”) Incorporated on August 7, 2017 RMB 1 million 100% PRC Shanghai Qian Lin Industrial Co., Ltd. (“Qian Lin”) Incorporated on August 8, 2017 — 100% PRC Shanghai Qian Jing Industrial Co., Ltd. (“Qian Jing”) Incorporated on August 9, 2017 RMB 1 million 100% PRC Shanghai Qian Xi Industrial Co., Ltd. (“Qian Xi”) Incorporated on August 9, 2017 RMB 0.06 million 100% PRC Shanghai Qian Dian Industrial Co., Ltd. (“Qian Dian”) Incorporated on August 10, 2017 RMB 0.06 million 100% PRC Shanghai Qian Du Industrial Co., Ltd. (“Qian Du”) Incorporated on August 10, 2017 — 100% PRC Name of subsidiary Date of Paid % of equity Place of Shanghai Qian Shi Industrial Co., Ltd. (“Qian Shi”) Incorporated on August 10, 2017 — 100% PRC Shanghai Xu Fan Industrial Co., Ltd (“Xu Fan”) Incorporated on August 15, 2017 RMB 0.01 million 100% PRC Shanghai Xu Xing Industrial Co., Ltd (“Xu Xing”) Incorporated on August 15, 2017 RMB 0.01 million 100% PRC Shanghai Xu Mu Industrial Co., Ltd (“Xu Mu”) Incorporated on August 17, 2017 RMB 1 million 100% PRC Shanghai Xu Liang Cultural Communication Co., Ltd. (“Xu Liang”) Acquired on August 31, 2017 RMB 1.83 million 100% PRC Fuqing Yun Zhong Information Technology Co., Ltd. (“Yun Zhong”) Incorporated on October 19, 2017 — 100% PRC Shanghai Miao Huan Industrial Co., Ltd. (“Miao Huan”) Incorporated on October 24, 2017 — 100% PRC Forthright International Holdings Limited Acquired on December 29, 2017 USD 1 dollar 100% BVI Forthright International Co., Ltd. Acquired on December 29, 2017 — 100% New Zealand Forthright Financial Holdings Co., Ltd Acquired on December 29, 2017 HKD 50 million 100% Hong Kong Forthright Securities Co., Ltd. Acquired on December 29, 2017 HKD 80 million 100% Hong Kong Forthright Management Services Co., Ltd. Acquired on December 29, 2017 HKD 0.01 million 100% Hong Kong Forthright Asset Management Co., Ltd. Acquired on December 29, 2017 HKD 15 million 100% Hong Kong Name of subsidiary Date of Paid % of equity Place of Forthright Finance Co., Ltd. Acquired on December 29, 2017 HKD 0.5 million 100% Hong Kong Shanghai Fan Di Information Technology Co., Ltd. (“Fan Di”) Acquired on December 29, 2017 HKD 5 million 100% PRC Name of VIE Date of Paid % of equity Place of Shanghai Bei Xun Industrial Co., Ltd. (“Bei Xun”) Acquired on January 3, 2017 RMB 10 million 100% PRC Shanghai Ran Yu Information Technology Co., Ltd. (“Ran Yu”) Acquired on January 3, 2017 RMB 20 million 100% PRC Guangdong Hong Feng Co., Ltd. (“Hong Feng”) Incorporated on October 17, 2017 RMB 2.6 million 100% PRC Name of VIE’s subsidiary Date of Paid % of equity Place of Shanghai Hua Shu Tong Jin Industrial Co., Ltd. (“Hua Shu Tong Jin”) Incorporated on May 26, 2017 RMB 0.01 million 100% PRC Guangdong Bo Zhong Securities Investment Advisory Co., Ltd. (“Bo Zhong”) Acquired on May 31, 2017 RMB 35 million 94% PRC Sina Shi Jin (Shanghai) Information Technology Co., Ltd. (“Sina Shi Jin”) (formerly known as Sina Cai Dao (Shanghai) Information Technology Co., Ltd.) Acquired on July 1, 2017 RMB 104.45 million 51% PRC Shanghai Hou Zhan Information Technology Co., Ltd. (“Hou Zhan”) Incorporated on July 20, 2017 — 51% PRC Name of VIE’s subsidiary Date of Paid % of equity Place of Shanghai Yuan Shi Investment Advisory Co., Ltd. (“Yuan Shi”) Acquired on August 31, 2017 RMB 2.3 million 100% PRC Shanghai Tian Xi Information Technology Co., Ltd. (“Tian Xi”) Acquired on August 31, 2017 RMB 10 million 100% PRC Shanghai Chun Da Asset Management Co., Ltd. (“Chun Da”) Acquired on October 1, 2017 RMB 10 million 100% PRC Note (*): These entities were acquired by Yintech through a group reorganization (the ‘‘Reorganization’’) as described below. Reorganization The Reorganization was completed on November 18, 2015. The Reorganization involved the incorporation of Yintech and the transfer of Tianjin Rong Jin Hui Yin Precious Metals Management Co., Limited (“Rong Jin Hui Yin”), Guangdong Jin Xiang Yin Rui Precious Metals Management Co., Limited (“Jin Xiang Yin Rui”), Shanghai Yin Tian Xia Technology Co., Limited (“Yin Tian Xia Technology”), and Yintech Enterprise Co., Limited, and their subsidiaries Shanghai Yin Tian Xia Precious Metal Products Co., Limited (“Yin Tian Xia Products”), Shanghai Yin Tian Xia Financial and Information Service Co., Limited (Yin Tian Xia Information”), Yintech Enterprise (HK) Co., Limited, Shanghai Yin Tian Xia Investment Management (Group) Co., Limited (“Yin Tian Xia Investment”), and Shanghai Ke Chang Investment Consulting Co,. Limited (“Ke Chang”) (collectively, the “Transferred Entities”) from Win Yin Financial and Information Service Company Limited (“Win Yin”) to Yintech. Prior to the Reorganization, the Transferred Entities’ equity interests were 100% owned by Win Yin. Chen Wenbin, Yan Ming, and Chen Ningfeng (collectively the “Founding Shareholders”), each owned 40%, 30%, and 30% equity interest in Win Yin. Establishment of Yintech. Yintech was established in the Cayman Islands on November 4, 2015 as an exempted company with limited liability under Companies Law (2011 Revision) (as combined and revised) of the Cayman Islands. Yintech is 100% ultimately owned by the Founding Shareholders, each owned 40%, 30%, and 30% equity interest in Yintech. Transfer of Transferred Entities to the Group. In November 2015, Yintech acquired Yintech Enterprise Co., Limited and its subsidiaries from Win Yin at book value of USD 1 (RMB 6). As a result, Yintech became the holding company of Yintech Enterprise Co.,Ltd., Yintech Enterprise (HK) Co. Limited, and Yin Tian Xia Investment. Also in November 2015, Yin Tian Xia Investment acquired Rong Jin Hui Yin, Jin Xiang Yin Rui and Yin Tian Xia Technology, and their subsidiaries from Shanghai Long Jin Co., Limited (“Long Jin”), a wholly-owned subsidiary of Win Yin, at book value of RMB 107.26 million, which was settled in December 2015. The consideration was financed by a shareholder loan which was subsequently repaid in February 2016. These acquisitions, as part of the Reorganization, were completed on November 18, 2015. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of preparation The combined and consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Principles of combination and consolidation Prior to the Reorganization, the combined financial statements include the financial statements of the Transferred Entities since the date of incorporation, and were prepared on a combined basis. Following the Reorganization, the consolidated financial statements include the accounts of Yintech and its subsidiaries, VIEs and VIEs’ subsidiaries, in which the Company is the ultimate primary beneficiary. All significant intercompany balances and transactions have been eliminated upon combination and consolidation. To comply with PRC legal restrictions on foreign ownership of companies that operates securities investment advisory, asset management and other restricted services, the Group operates these regulated business in China through certain PRC domestic companies, namely Ran Yu, Bei Xun and Hong Feng (collectively, the “VIEs” and each a “VIE”), whose equity interests are held by their nominee shareholders. The registered capital of these VIEs are funded by the Company through its wholly owned subsidiary, namely Xie Luo, and recorded as interest-free loans to these nominee shareholders. These loans were eliminated with the capital of the VIEs during consolidation. The Company began to consolidate Ran Yu, Bei Xun and Hong Feng as VIEs in January, January and October 2017, respectively. Under various contractual agreements, nominee shareholders of the VIEs are required to transfer their ownership in these entities to Xie Luo when permitted by PRC laws and regulations or to designees of Xie Luo at any time for the amount of loans outstanding. All voting rights of the VIEs are assigned to Xie Luo and Xie Luo has the right to appoint all directors and senior management personnel of the VIEs. The Company has also entered into exclusive service agreements with the VIEs, under which Xie Luo provides business consulting and other services to the VIEs with service fee equivalent to 100% of the VIEs’ net profits. In addition, nominee shareholders of the VIEs have pledged their shares in the VIEs as collateral for the non-payment of loans or for the technical and other services fees due to Xie Luo. The principal terms of the agreements entered into amongst the VIEs, their respective shareholders and Xie Luo are further described below. Loan Agreement. Pursuant to the Loan Agreement, Xie Luo agrees to lend interest free loans to nominee shareholders and the VIEs with sole purpose for payment of paid-in capital of the VIEs and their daily operation, respectively. The amount of loan depends on the written loan granting notice. Pursuant to the Loan Agreement, the term of loans is 10 years, nominee shareholders and the VIEs should repay the loan, and any other payables by means that is acceptable to Xie Luo on expiry date. These loans were eliminated with the capital and payables of the VIEs during consolidation. Exclusive Services Agreement. Pursuant to the Exclusive Services Agreement, Xie Luo has the exclusive right to provide business consulting services, including marketing, operation, business management, training and other customized services, to the VIEs. Without Xie Luo’s prior written consent, the VIEs agree not to accept the same or any similar services provided by any third party. The VIEs agree to pay service fees on a yearly basis or at any other time when Xie Luo considers it is necessary and at an amount equivalent to 100% of The VIEs’ net profits as confirmed by Xie Luo. Pursuant to the Exclusive Services Agreement, Xie Luo agrees to absorb all the profits and losses of the VIEs, and will provide financial support when the VIEs come across operation loss or serious business difficulties. The term of this agreement is 10 years, and the agreement will be automatically extended upon the expiry. Exclusive Purchase Option Agreement. Pursuant to the Exclusive Purchase Option Agreement, the nominee shareholders of the VIEs have irrevocably granted Xie Luo an exclusive option to purchase, or have its designated person(s) to purchase, at its discretion, to the extent permitted under PRC law, all or part of such shareholders’ equity interests in the VIEs. The purchase price should equal to the minimum price required by PRC law or such other price as may be agreed by the parties in writing. Without Xie Luo’s prior written consent, the nominee shareholders of the VIEs have agreed that the VIEs shall not amend the articles of association, increase or decrease the registered capital, sell or otherwise dispose of their assets or beneficial interest, provide any loans, or distribute dividends to the shareholders, and the shareholders shall not offer to sell, transfer, gift, pledge, or otherwise dispose all or part of their equity interests in the VIEs. These agreements will remain effective until all equity interests of the VIEs have been transferred or assigned to Xie Luo or its designated person(s). Powers of Attorney. Pursuant to the Powers of Attorney, each nominee shareholder of the VIEs has irrevocably entrust all their rights to Xie Luo or its designated person(s). All shareholder rights, including, but not limited to, voting on all matters of the VIEs, signing on all documents of the VIEs that require shareholder approval, appointing directors, executive officers and major financial personnel, deciding to carry out liquidation of the VIEs, keeping the company seal, financial seal and other materials, items or information which can control the VIEs’ daily operation and disposing of all or part of the shareholder’s equity interest in the VIEs. Xie Luo is also entitled to appoint and change the entrustee to act as exclusive attorney in fact of the shareholders of the VIEs with prior notice to such shareholders. Pursuant to the Powers of Attorney, Xie Luo has rights to know the key information of the VIEs, including but not limited to, operating status, clients’ information, employee data and financial information. The power of attorney will remain in force until the nominee shareholders have transferred all of their equity interest to Xie Luo or its designated person(s), or Xie Luo provides written consent to terminate the powers of attorney. Equity Interest Pledge Agreement. Pursuant to the Equity Interest Pledge Agreement, nominee shareholders of the VIEs have pledged all of their equity interest in the VIEs to Xie Luo to guarantee the fulfillment of obligations under the contractual agreements, which include the Loan Agreement, the Powers of Attorney, Exclusive Option Agreement, Exclusive Service Agreement, Intellectual Property License and Transfer Agreement, and Equity Interest Pledge Agreement. If any of contractual obligations are breached under these agreements, Xie Luo, as pledgee, will be entitled the rights to dispose all or part of the pledged equity interests of any nominee shareholders, even the one does not breach the contractual obligations. The prior rights are given to compensate the service fee, compensation of breaching contracts (if any), interest, compensatory payment, etc, from the proceeds of pledged equity interest disposal. Each of the shareholders of the VIEs agrees that, during the term of the equity interest pledge agreements, he or she will not dispose of the pledged equity interests or create or allow creation of any encumbrance on the pledged equity interests without the prior written consent of Xie Luo. The Equity Interest Pledge Agreements remain effective until all the contractual arrangements are terminated, the VIEs and the shareholders discharge all their obligations under the contractual arrangements, or Xie Luo obtains all of equity interests of the VIEs under the terms of Exclusive Option Agreement . Intellectual Property License and Transfer Agreement. Pursuant to the Intellectual Property License and Transfer Agreement, the VIEs have irrevocably granted Xie Luo an exclusive right to acquire any or all of the intellectual property rights owned by the VIEs. Before acquiring intellectual property of the VIEs, Xie Luo has an exclusive license to use for free any or all of the intellectual property rights owned by the VIEs from time to time. Without Xie Luo’s prior written consent, the VIEs agree not to transfer or license any intellectual property rights to any third parties. In addition, the VIEs has granted Xie Luo the right to purchase any or all of the intellectual property rights of the VIEs at the lowest price permitted under PRC law. The Company believes that the contractual arrangements among its wholly owned subsidiary, the VIEs and its shareholders are in compliance with the current PRC laws and legally enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIEs and its subsidiary in the combined and consolidated financial statements. The Company’s ability to control its VIEs also depends on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholders’ approval in the VIEs. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable. In addition, if the legal structure and contractual arrangements with its VIEs were found to be in violation of any future PRC laws and regulations, the Company may be subject to fines or other actions. The Company believes the possibility that it will no longer be able to control and consolidate its VIEs will occur as a result of the aforementioned risks and uncertainties is remote. The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents of the VIEs and their subsidiaries taken as a whole, which were included in the Company’s consolidated balance sheets and statements of comprehensive income (loss) with intercompany transactions eliminated: Year ended December 31, 2016 2017 2017 RMB RMB (Note2)USD Unaudited Total assets — Total liabilities — Year ended December 31, 2016 2017 2017 RMB RMB (Note2)USD Unaudited Net Revenues — Net Expenses — ) ) Year ended December 31, 2016 2017 2017 RMB RMB (Note2)USD Unaudited Cash flows from operating activities — Cash flows from investing activities — ) ) Cash flows from financing activities — Net increase in cash — The Company began to consolidate Ran Yu, Bei Xun and Hong Feng as VIEs in January, January and October, 2017, respectively. As of December 31, 2017, the total assets for the consolidated VIEs were RMB 258.47 million, which mainly comprised of RMB 57.39 million in cash and short-term investments, and RMB 201.08 million in the remaining balances include accounts receivable, other assets, intangible assets, equipment and leasehold improvement, deferred tax assets and goodwill. As of December 31, 2017, total liabilities for the consolidated VIEs were RMB 28.43 million, which mainly included RMB 16.7 million in accounts payable, other liabilities and accrued employee benefits, RMB 5.52 million in income taxes payable, and RMB 6.21 million in deferred revenues. Under the contractual arrangements with the VIEs, the Company through its wholly owned subsidiary, Xie Luo, has the power to direct activities of the VIEs and can have assets transferred freely out of the VIEs without restrictions. Therefore, the Company considers that there is no asset of VIEs that can only be used to settle obligations of the respective VIEs, except for registered capital and PRC statutory reserves of VIEs. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company or Xie Luo. Currency translation for financial statements presentation The accompanying combined and consolidated financial statements are reported in Renminbi (“RMB”). Yintech’s functional currency is USD, and the reporting currency is RMB. Yintech’s subsidiaries determine their functional currencies based on the criteria of FASB ASC 830, Foreign Currency Matters. The combined and consolidated financial statements are translated into RMB using the exchange rate at the balance sheet date for assets and liabilities, and the average exchange rate in the period for revenues, expenses, gains and losses. Any translation gains or losses are recorded in other comprehensive income / (loss). Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date. Exchange gains and losses are included in earnings as a component of other revenues. Translations of amounts from RMB into USD for the convenience of the reader have been calculated at the exchange rate of RMB 6.5063 per USD 1.00 on December 29, 2017, the last business day for the year ended 31 December, 2017, as published on the website of the United States Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at such rate. The USD convenience translation is not required under U.S. GAAP and all USD convenience translation amounts in the accompanying combined and consolidated financial statements are unaudited. Use of estimates The preparation of combined and consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the combined and consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Group evaluates its estimates and judgments including those related to: the fair value of stock based compensation; the useful lives and recoverability of equipment and leasehold improvements and intangible assets; goodwill, the purchase price allocation and fair value of non-controlling interests with respect to business combinations; the fair value of investments; the carrying value of receivables from customers; the determination of the allowance for doubtful accounts; the liabilities for unrecognized tax benefits; indefinitely reinvested earnings; and the valuation allowance for deferred tax assets. Derivative financial instruments The Group recognizes all derivative instruments as either assets or liabilities in the balance sheet at their respective fair values. In the normal course of business and as a comprehensive member of the Tianjin and Guangdong Exchanges, the Group enters into transactions in derivative financial instruments with customers. As a comprehensive member of the Tianjin and Guangdong Exchanges, the Group is required to serve as the counterparty of the customer trading of precious metals through exchange-traded spot commodity contracts. The Tianjin and Guangdong Exchanges quote trading prices of the spot commodity contracts with reference to the prices from relevant international and domestic spot commodities markets. The Group does not apply hedge accounting, as all derivative financial instruments are held for trading purposes and therefore recorded at fair value with changes reflected in earnings. Contracts with customers are traded either as long or short positions and the notional amount and fair values of the contracts in a loss position are not offset against notional amount and the fair value of contracts in a gain position. Gains and losses (realized and unrealized) on all derivative financial instruments are shown as a component of trading gains / (losses), net. In accordance with the Tianjin and Guangdong Exchanges’ requirements, the Group’s customers must meet, at a minimum, the deposit requirements established by the Tianjin and Guangdong Exchanges at which the spot commodity contracts are traded. Therefore, exchange traded spot commodity contracts generally do not give rise to significant counterparty exposure due to the cash settlement procedures for daily market movements (“variation margin”) and the deposit requirements of the Tianjin and Guangdong Exchanges. The variation margin payments represent the daily settlement of the outstanding exposure of the derivative contract. Likewise, as the counterparty to customer trades, the Group is also required to place deposits with custodian banks of the Tianjin and Guangdong Exchanges to meet the minimum deposit requirements. Such amount placed at banks to meet the minimum deposit requirements is included in deposits with clearing organizations and restricted from withdrawal. In 2015, 2016 and 2017, the Group traded commodity futures contracts on the Shanghai Futures Exchange to manage its exposure on spot commodity contracts and physical trading of raw silver. Commodity futures contracts are recorded at fair value with changes reflected in earnings. Gains and losses from these contracts are recorded in trading gains / (losses), net. At the end of December 31, 2016 and 2017, the Group has no commodity futures contracts outstanding. In 2015, the Group entered into risk and return transfer agreements with a third party fund. Gains and losses from the risk and return transfer agreements are recorded in trading gains / (losses), net. In 2016, under the New Mechanism of Tianjin Exchange, the Group only takes the broker role in customer deals and does not take positions any more. As a result, the Group started to only earn trading commissions in Tianjin Exchange. By December 31, 2016, the New Mechanism has fully replaced the old mechanism and no trading gains / (losses) from Tianjin Exchange will be recorded from then on. In 2017, with the termination of trading on the Guangdong Exchange and the suspension of trading on the Tianjin Exchange, there will be no more gains or losses arising from spot commodity contracts or the risk and return transfer agreements. Entrusted bank balances held on behalf of customers Entrusted bank balances held on behalf of customers is the fund that Forthright Securities receives from customers for purpose of buying or selling securities on their behalf. The fund is deposited at designated entrusted bank accounts. Short-term investments Short-term investments mainly include available-for-sale investments (“AFS investments”) and reverse repurchase agreements. AFS investments include wealth management products issued by banks, fund investments and trust investments managed by licensed asset management companies. These investments are recorded at fair value. Unrealized holding gains and losses on AFS investments, net of the related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive income until realized. Realized gains and losses from the sale of AFS investments are determined on a specific-identification basis and are recorded as trading gains / (losses). Reverse repurchase agreements are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. Interest and investment income are recognized when earned. Revenue recognition Revenue is recognized when all of the following conditions are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. These criteria as they relate to each of the following major revenue generating activities are described below. (i) Commissions and fees Commissions and fees are recorded on a trade-date basis. The Group earns trading commissions, spread fees and overnight fees from its operation on Tianjin and Guangdong Exchanges, which are settled on a daily basis. The Group earns trading commissions from its operation on Shanghai Exchange and the Futures Commodity Exchanges, which are settled on a monthly basis. Cash rebates on trading commissions and overnight fees offered by the Group to its customers are recorded as a reduction of revenue. (ii) Trading gains / (losses) Trading gains / (losses) consist of realized and unrealized gains and losses from exchange-traded spot commodity contracts, commodity futures contracts and risk and return transfer agreements, the realized gains from trading of physical commodities, and realized gains and losses from the sale of AFS investments, all presented on a net basis. Changes in fair value in relation to spot commodity contracts, commodity futures contracts and risk and return transfer agreements are recorded in trading gains / (losses), net on a daily basis as disclosed in the accounting policy of derivative financial instruments. Trading gains / (losses) on physical commodities are recognized when title passes and measured by the difference between the acquisition cost of the commodity and the cash received or receivable. (iii) Interest and investment income Interest income is recognized at the effective interest rate. Investment income is recognized when earned. (iv) Other revenues Other revenues primarily consist of gain on disposal of subsidiaries, income from sales of application services, sales of silver products, government grants, awards from the Exchanges and value-added-tax (“VAT”) refund. Gain on disposal of subsidiaries is recognized when the substantive control over the subsidiaries is transferred and the disposal consideration is received or there is a reasonable assurance that they will be received. Sales of application services comprise the sales of a license subscription bundled with customer support service during the license period. Revenue from sales of application services are recognized ratably over the term of the arrangement which is generally 1 year. During the period of the arrangement, the customer does not have the contractual right to take possession of the software at any time. Sales of silver products are recognized when goods are delivered at the customers’ premises which are taken to be the point in time when the customer has accepted the goods and the related risks and rewards of ownership. Revenue excludes value added tax. Government grants are recognized when there is reasonable assurance that they will be received and that the Group will comply with the conditions attaching to them. Grants that compensate the Group for expenses incurred are deducted in reporting the related expenses on a systematic basis in the same periods in which the expenses are incurred. Awards from the Exchanges and VAT refund are recognized when earned and there is reasonable assurance that they will be received and amounts can be reasonably estimated. Equipment and leasehold improvements Equipment and leasehold improvements are stated at cost. Depreciation is provided on a straight-line basis using estimated useful lives of three to five years. Leasehold improvements are amortized over the shorter of the economic useful life of the improvement or the term of the lease. Advertising and promotion expenses Advertising expenses represent expenses for placing advertisements on television, radio and newspaper, as well as on Internet websites and search engines. Promotion expenses represent commissions paid to sales agents for bringing in new customers. Advertising and promotion cost are expensed as incurred. Defined contribution plan Pursuant to relevant PRC regulations, the Group is required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at statutory rates as determined by local social security bureau. Contributions to the defined contribution plans are charged to the consolidated statements of income. The Group has no obligations for payment of pension benefits associated with the plans beyond the amount it is required to contribute. Stock based compensation The Group measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The Group recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, net of estimated forfeitures, provided that the cumulative amount of compensation cost recognized at any date at least equals to the portion of the grant-date value of such award that is vested at that date. Forfeiture rates are estimated based on historical and future expectations of employee turnover rates. Stock compensation expense, when recognized, is recorded as expense with the corresponding entry to additional paid-in capital. During 2017 the Company has adopted ASU 2016-09 which did not have any impact in the Company’s financial statements. In accordance with ASU 2016-09, the Company has made the accounting policy election to continue to estimate forfeitures based upon historical occurrences. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group presents any interest or penalties related to an underpayment of income taxes as part of its income tax expense. Provisions and contingent liabilities Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Goodwill and Intangible Assets Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Indefinite-lived intangible assets are assets that are not amortized as there is no foreseeable limit to cash flows generated from them. Intangible assets with finite useful lives are amortized over their estimated useful lives in the method that reflect the pattern in which the economic benefits of the intangible assets are consumed. Impairment of Goodwill The Company assesses goodwill for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events. The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the two-step test. If the Company believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Company is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. Long-Lived Assets Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Treasury Stock The Company accounts for treasury stock using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury stock account on the consolidated balance sheets. At retirement, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury stocks over the aggregate par value is allocated between additional paid-in capital (up to the amount credited to the additional paid-in capital upon original issuance of the shares) and retained earnings. Segment Reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Group has one single operating and reportable segment. (Note 30 – Segment Information) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (‘‘FASB’’) issued ASU No. 2014-09, Revenue from Contracts with Customers, which outlines a comprehensive new revenue recognition model designed to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14 to defer the effective date to annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. A company is required to disclose sufficient quantitative and qualitative information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Companies are permitted to adopt the standard using a retrospective transition method (i.e., restate all prior periods presented) or a cumulative effect method (i.e., recognize the cumulative effect of initially applying the guidance at the date of initial application with no restatement of prior periods). However, both methods allow companies to elect certain practical expedients on transition that will help to simplify how a company restates its contrac |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 3. FAIR VALUE MEASUREMENTS Fair Value Hierarchy FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy of fair value inputs. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the measurement date. Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly. Level 3 : Unobservable inputs for the asset or liability. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Fair Value Measurements A description of the valuation techniques applied to the Group’s major categories of assets and liabilities measured at fair value on a recurring basis as follows. Exchange-Traded Derivative Contracts. Derivatives that are actively traded are valued based on quoted prices from the exchanges and are categorized in level 1 of the fair value hierarchy. Available-for-sale Investments: Available-for-sale investments include: · Wealth management products issued by banks and trust investments issued by licensed trust companies, which are valued based on prices per units quoted by issuers. They are categorized in level 2 of the fair value hierarchy. · Fund investments that do not have a readily determinable fair value invested in funds are valued using net asset value (“NAV”) that is based on the underlying investments of the fund in accordance with ASC 820-10-35-59. They are not categorised in the fair value hierarchy and are disclosed as a separate item. Risk and Return Transfer Contracts. Risk and return transfer contracts are valued based on the quoted prices of spot commodity contracts entered by the Group with its customers and the fair value of unsettled receivables or payables under the contracts. They are categorized in level 2 of the fair value hierarchy. The following table presents the Group’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis. Fair Value Measurements on a Recurring Basis At December 31, 2017 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Asset Derivative assets — — — — AFS investments - Wealth management products and trust plans — — - Fund investments measured at NAV* — — — Total — — * Investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. At December 31, 2016 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Asset Derivative assets — — AFS investments — — Total — — There were no transfers between level 1 and level 2 during the year. There were no transfer into or out of level 3 during the year. The following table presents the carrying values and estimated fair values of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and information is provided on their classification within the fair value hierarchy. Total At carrying Estimated December 31, 2017 value Level 1 Level 2 Level 3 fair value RMB RMB RMB RMB RMB Asset Cash — — Entrusted bank balances held on behalf of customers — — Deposits with clearing organizations — — Reverse repurchase agreements — — Other financial assets — — Total — Liabilities Other financial liabilities — — Total — — Total At carrying Estimated December 31, 2016 value Level 1 Level 2 Level 3 fair value RMB RMB RMB RMB RMB Asset Cash — — Deposits with clearing organizations — — Other financial assets — — Total — Liabilities Other financial liabilities — — Total — — |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2017 | |
ACQUISITIONS | |
ACQUISITIONS | 4. ACQUISITIONS (1) Acquisition of Forthright Group On December 29, 2017, the Group acquired 100% of the shares of Forthright Financial Holdings Company Limited and its subsidiaries (collectively, the “Forthright Group”) from one of the Company’s Founding Shareholders. The operation results of Forthright Group have been included in the combined and consolidated financial statements since acquisition date. Forthright Group mainly engages in providing securities brokerage and advisory services through its wholly-owned subsidiary, Forthright Securities, a Type 1, Type 4 and Type 9 licensed entity incorporated in Hong Kong. A cash consideration of RMB 12.81 million has been transferred to acquire the business. The following table summarizes the consideration paid for Forthright Group and the estimated aggregate fair values of the assets acquired and liabilities assumed as of the date of acquisition. Consideration Cash Recognized amounts of identifiable assets acquired and liabilities assumed Cash Entrusted bank balances held on behalf of customers Equipment and leasehold improvements Intangible assets Accounts receivable Other assets Accounts payable ) Accrued employee benefits ) Other liabilities ) Total identifiable net assets acquired ) Goodwill Total The Group has completed valuations necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the acquisition date. The acquired intangible asset is the security trading right in the Stock Exchange of Hong Kong, which has indefinite life. As a result of the acquisition, the Group is expected to expand our business to overseas securities services and other investment services. It also expects to reduce costs through economy of scale. The goodwill arising from the acquisition is primarily attributable to the synergies and economy of scale, and is not amortised for tax purpose. (2) Acquisition of Sina Shi Jin (formerly known as Sina Cai Dao) On July 31, 2017, the Group acquired 51% of the shares of Sina Shi Jin, formerly known as Sina Cai Dao. The operation results of Sina Shi Jin have been included in the combined and consolidated financial statements since acquisition date. Sina Shi Jin mainly engages in providing securities advisory services and securities information platform services. A cash consideration of RMB 18.49 million has been transferred to acquire the business. The following table summarizes the consideration paid for Sina Shi Jin and the estimated aggregate fair values of the assets acquired and liabilities assumed as of the date of acquisition. Consideration Cash Recognized amounts of identifiable assets acquired and liabilities assumed Cash Equipment and leasehold improvements Deferred tax assets Short-term investments Other assets Accounts payable ) Accrued employee benefits ) Other liabilities ) Total identifiable net assets acquired Non-controlling interest ) Goodwill Total The Group has completed valuations necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the acquisition date. As a result of the acquisition, the Group is expected to expand our services to individual investors seeking investments in securities, wealth management, futures and gold products. It also expects to reduce costs through economy of scale. The goodwill arising from the acquisition is primarily attributable to the synergies and economy of scale, and is not amortizable for tax purpose. (3) Other acquisitions in 2017 The Group also completed other business combinations during 2017, including Forthright International, Chun Da, Yuan Shi, Tian Xi, Xu Liang and Bo Zhong. The results of the acquired entities’ operations have been included in the Group’s consolidated financial statements since their respective dates of acquisition. The Group completed the valuations necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed and the fair value of non-controlling interests, resulting from which the amount of goodwill was determined and recognized as of the respective acquisition dates. The acquired intangible assets consist mainly the security investment advisory license of RMB 68.75 million (indefinite-lived intangible assets). As a result of the acquisition, the Group expected to complement its existing businesses and achieve synergies. The goodwill arising from the acquisitions is primarily attributable to the synergies and economy of scale, and is not amortizable for tax purpose. The following table summarizes the estimated aggregate fair values of the assets acquired, liabilities assumed and the non-controlling interests as of the respective dates of acquisition: Consideration Cash Recognized amounts of identifiable assets acquired and liabilities assumed Cash Accounts receivable Equipment and leasehold improvements Intangible assets Deferred tax assets Short-term investments Goodwill Other assets Accounts payable ) Income tax payable ) Accrued employee benefits ) Other liabilities ) Total identifiable net assets acquired Noncontrolling interest ) Goodwill Total (4) Acquisition of Gold Master HK in 2016 On August 31, 2016, the Group acquired 100% of the shares of Gold Master HK. The results of Gold Master HK’s operations have been included in the consolidated financial statements since acquisition date. Gold Master HK is engaged in providing online spot commodity trading services to customers in China on Shanghai Exchange through its wholly-owned subsidiary, Gold Master. A combination of cash and share consideration has been transferred to acquire the business, including RMB 281.62 million in cash and 200,890,940 newly issued Yintech ordinary shares. The following table summarizes the consideration paid for Gold Master HK and the estimated aggregate fair values of the assets acquired and liabilities assumed as of the respective dates of acquisition: Consideration Cash Equity instrument (200,890,940 ordinary shares of the Company) Fair value of total consideration transferred Recognized amounts of identifiable assets acquired and liabilities assumed Cash Available-for-sale investments Equipment and leasehold improvements Intangible assets Other assets Accounts payable ) Accrued employee benefits ) Deferred tax liabilities ) Other liabilities ) Total identifiable net assets acquired Goodwill Total The fair value of the 200,890,940 ordinary shares issued as part of the consideration paid for Gold Master HK (RMB 1,146 million) was determined on the basis of the closing market price of the Company’s ordinary shares on the acquisition date. The Group has completed valuations necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the acquisition date. The acquired intangible assets include a customer list of RMB 239.31 million (6-year weighted average useful life), a trademark of RMB 150.64 million (10-year weighted average useful life), a licence in Shanghai Exchange of RMB 37.00 million (indefinite-lived intangible assets) and software of RMB 2.86 million (10-year weighted average useful life). As a result of the acquisition, the Group is expected to enhance its presence on the Shanghai Exchange and extend its leadership from spot trading of silver to gold. It also expects to reduce costs through economy of scale. The goodwill of RMB 1,065.72 million arising from the acquisition is primarily attributable to the synergies and economy of scale, and is not amortizable for tax purpose. (5) Other acquisitions in 2016 The Group also completed other business combinations during 2016, including Da Xiang Ping Tai, Yin He You and Yin Ru Yi, which the Group expected to complement its existing businesses and achieve synergies. The results of the acquired entities’ operations have been included in the Group’s consolidated financial statements since their respective dates of acquisition. The Group completed the valuations necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed and the fair value of noncontrolling interests, resulting from which the amount of goodwill was determined and recognized as of the respective acquisition dates. The following table summarizes the estimated aggregate fair values of the assets acquired, liabilities assumed and the noncontrolling interests as of the respective dates of acquisition: Consideration Cash Recognized amounts of identifiable assets acquired and liabilities assumed Cash Equipment and leasehold improvements Intangible assets Other assets Accounts payable ) Accrued employee benefits ) Other liabilities ) Total identifiable net assets acquired Noncontrolling interest ) Goodwill Total |
DECONSOLIDATION
DECONSOLIDATION | 12 Months Ended |
Dec. 31, 2017 | |
DECONSOLIDATION | |
DECONSOLIDATION | 5. DECONSOLIDATION In August, 2017, the Group fully disposed four subsidiaries, including Guangdong Sheng Ding Precious Metal Management Company Limited (“Sheng Ding”), Shanghai Da Xiang Ping Tai Financial Information Services Company Limited (“Da Xiang Ping Tai”) ,Tianjin Da Xiang Precious Metals Management Company Limited (“Tian Jin Da Xiang”), and Jiangxi Da Xiang Shun Yi Metals Company Limited (“Da Xiang Shun Yi”) to a third party, which were previously owned 100%, 70%, 70% and 100% by the Company, respectively. Pursuant to the arrangement, the total cash consideration for the disposal was RMB 8.00 million, which was fully received in 2017. The Group realized a disposal gain of RMB 23.78 million in the combined and consolidated statement of comprehensive income for the year ended December 31, 2017. In November, 2017, the Group fully disposed four subsidiaries, including Rong Jin Hui Yin, Jin Xiang Yin Rui, Tianjin Yin Ru Yi Precious Metal Company Limited (“Yin Ru Yi”) and Yin Tian Xia Products to third parties. All entities were previously wholly owned by the Group. Pursuant to the arrangement, the total cash consideration was RMB 189.00 million, out of which RMB 90.00 million was received by the end of 2017. The Group realized a disposal gain of RMB 63.44 million in the consolidated statement of comprehensive income for the year ended December 31, 2017. |
CASH
CASH | 12 Months Ended |
Dec. 31, 2017 | |
CASH | |
CASH | 6. CASH Cash represents cash on hand and bank deposits. To limit exposure to credit risk relating to bank deposits, the Group primarily places bank deposits with large financial institutions in the PRC with acceptable credit rating. As of December 31, 2016 and 2017, the Group had cash balances at four and five PRC individual financial institutions, respectively, that held cash balances in excess of 10% of the Group’s total cash balances. These bank deposits collectively accounted for approximately 74% and 99% of the Group’s total cash balances as of December 31, 2016 and 2017, respectively. |
ENTRUSTED BANK BALANCE HELD ON
ENTRUSTED BANK BALANCE HELD ON BEHALF OF CUSTOMERS | 12 Months Ended |
Dec. 31, 2017 | |
ENTRUSTED BANK BALANCE HELD ON BEHALF OF CUSTOMERS | |
ENTRUSTED BANK BALANCE HELD ON BEHALF OF CUSTOMERS | 7. ENTRUSTED BANK BALANCE HELD ON BEHALF OF CUSTOMERS As of December 31, 2017, entrusted bank balances held on behalf of customers represent cash received from customers for purpose of buying or selling securities on their behalf in connection with Forghright’s security brokerage business. The fund is deposited at designated entrusted bank accounts in three large financial institutions in Hong Kong with acceptable credit rating. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
SHORT-TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 8. SHORT-TERM INVESTMENTS December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited AFS investments Reverse repurchase agreements — Total As at December 31, 2017, reverse repurchase agreements represent reverse repurchase of Chinese government bond that has an original maturity date less than one month, which is recorded at amortized cost. AFS investments mainly include wealth management products issued by banks, trust plans issued by licensed trust companies and fund investments managed by licensed asset management companies. As at December 31, 2016, short-term investments are AFS investments of RMB 218.94 million, which represent wealth management products issued by banks. Wealth management products issued by banks mainly invest in money market and fixed income products, including government bonds, treasury bills, and other fixed income investments. Funds are those investments in fund of funds, and the underlying investments include fixed income products, commodity contracts, derivatives and other investments. Wealth management products and fund investments can be redeemed upon demand. The underlying investment in trust plans mainly include debts, beneficiary rights and other equity investments. Gross Aggregate unrealized At December 31, 2017 cost basis holding losses Aggregate fair value RMB RMB RMB USD (Note2) Unaudited Available-for-sale investments ) Total ) Gross Aggregate unrealized At December 31, 2016 cost basis holding gains Aggregate fair value RMB RMB RMB USD (Note2) Unaudited Available-for-sale investments — Total — |
EQUIPMENT AND LEASEHOLD IMPROVE
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | |
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | 9. EQUIPMENT AND LEASEHOLD IMPROVEMENTS Equipment and leasehold improvements consist of the following: December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited Electronic equipment Office equipment Motor vehicles Leasehold improvements Total equipment and leasehold improvements Less: accumulated depreciation ) ) ) Equipment and leasehold improvements, net |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | 10. ACCOUNTS RECEIVABLE December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited Commission receivable Receivables from other brokers and clients — Total As of December 31, 2017, receivables from other brokers and clients are related to the overseas securities brokerage service provided by Forthright Group. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
OTHER ASSETS | |
OTHER ASSETS | 11. OTHER ASSETS Other assets consist of the following: December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited Prepayment to suppliers Silver products and raw silver VAT refund receivable Awards receivable from exchanges — — Receivable from customers — — Expense advance to employees Prepayment for business acquisition — Receivables related to subsidiaries disposal — Receivables related to AFS investment disposal — Deposit and others Total As of December 31, 2017, prepayment for business acquisition represents upfront payment made in connection with the contract signed in December 2017 to acquire Shanghai Fu Dong Cultural Communication Co., Ltd. The acquisition has not been completed by the end of 2017. As of December 31, 2017, receivables related to subsidiaries disposal is the remaining balance of disposal consideration to be received in installment in the year of 2018 in connection with the disposal of four subsidiaries as mentioned in Note 5 — Deconsolidation. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | 12. OTHER LIABILITIES Other liabilities consist of the following: December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited Non-income taxes and surcharges payable Deferred revenue — Accrued offering costs Customer rebates payable — — Accrued expenses and others Total As of December 31, 2017, customer rebates payable is nil, which is due to the cessation of operation on Tianjin and Guangdong Exchange as mentioned in Note 22 - Commissions and fees. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL | |
GOODWILL | 13. GOODWILL Goodwill consists of the following: December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited Balance as of January 1 Gross goodwill Accumulated impairment losses — — — Net goodwill as of January 1 Goodwill acquired during the year Goodwill disposed during the year — ) ) Impairment loss — — — Amortization expense — — — Balance as of December 31 Gross goodwill Accumulated impairment expense — — — Accumulated amortization expense — — — Net goodwill as of December 31 In 2017, the Company performed a qualitative assessment for the reporting unit of Gold Master HK. The Company evaluated all relevant events and circumstances, including macroeconomic conditions, industry and market considerations, overall financial performance of Gold Master HK, and other relevant events. The Company weighed all factors in their entirety and concluded that it was not more-likely-than-not the fair value of the reporting unit of Gold Master HK was less than its carrying amount, and further impairment testing on goodwill was unnecessary as of December 31, 2017. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 14. INTANGIBLE ASSETS December 31, 2017 Weighted average amortization Gross carrying Accumulated Net carrying period amount amortization amount Amortizing intangible assets: Customer list 6 years ) Trademark 10 years ) Acquired software 10 years ) Subtotal ) Indefinite-lived intangible assets Operating Licenses and Trading Rights — Subtotal — Total intangible assets (RMB) ) Total intangible assets (USD) unaudited ) December 31, 2016 Weighted average amortization Gross carrying Accumulated Net carrying period amount amortization amount Amortizing intangible assets: Customer list 6 years ) Trademark 10 years ) Acquired software 10 years ) Subtotal ) Indefinite-lived intangible assets License of Shanghai Exchange — Subtotal — Total intangible assets (RMB) ) Total intangible assets (USD) unaudited ) Aggregate amortization expense for amortizing intangible assets was RMB 0.35 million, RMB19.08 million and RMB 56.55 million for the years ended December 31, 2015, 2016 and 2017, respectively. Estimated amortization expense for the next five years is: RMB 56.40 million in 2018, RMB 56.38 million in 2019, RMB 56.38 million in 2020, RMB 56.38 million in 2021, and RMB 43.09 million in 2022. Separately identifiable intangible assets that have determinable lives continue to be amortized and consist primarily of customer list, trademark and acquired software as of December 31, 2017. The Company amortizes intangible assets on a straight-line basis over their estimated useful lives, which is six to ten years. The estimated life of amortized intangibles is reassessed if circumstances occur that indicate the life has changed. Other intangible assets that have indefinite useful life primarily include licenses as of December 31, 2017. The Company evaluates indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, the asset is tested for impairment. No impairment on intangible assets was recognized for the years ended December 31, 2015, 2016 and 2017. |
ORDINARY SHARES AND ADDITIONAL
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | 12 Months Ended |
Dec. 31, 2017 | |
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | 15. ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL Holders of ordinary share are entitled to one vote per share, and to receive dividends and, upon liquidation or dissolution, are entitled to receive all assets available for distribution to shareholders. The holders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. Yintech was established in the Cayman Islands on November 4, 2015 as an exempted company with limited liability under Companies Law (2011 Revision) (as combined and revised) of the Cayman Islands. Authorized share capital of Yintech is USD 0.03 million, or 3,000,000,000 authorized shares with a par value of USD 0.00001 each. Upon the establishment, 1,000,000,000 shares were issued to Founding Shareholders at par value, equivalent to ordinary share capital of USD 0.01 million. As part of the Reorganization, Yin Tian Xia Investment acquired Rong Jin Hui Yin, Jin Xiang Yin Rui and Yin Tian Xia Technology, and their subsidiaries from Long Jin at a consideration of RMB 107.26 million in November 2015, upon which, Rong Jin Hui Yin, Jin Xiang Yin Rui and Yin Tian Xia Technology became wholly-owned subsidiaries of the Company and the paid-in capital of RMB 125 million was eliminated in the consolidated balance sheet as of December 31, 2015 to reflect the legal capital of Yintech (par value of ordinary shares and additional paid-in capital). On December 14, 2015, a shareholder loan of USD 39.39 million (RMB 254.30 million) was extended to Yintech by Founding Shareholders to increase the working capital of Yintech. On the same date, the loan was waived in full by the Founding Shareholders and USD 39.39 million (RMB 254.30 million) was recorded as additional paid-in capital of Yintech. On May 2, 2016, the Company completed its IPO on NASDAQ and successfully issued 7,500,000 America Depositary (ADSs) (150,000,000 ordinary shares equivalent) to the public shareholders at USD 13.5 per ADS. On the same date, in connection with a concurrent private placement, the Company issued 740,741 ADSs (14,814,815 ordinary shares equivalent) at USD 13.5 per ADS to MeMeStar Limited, a wholly-owned subsidiary of SINA Corporation (NASDAQ: SINA). As a result of these issuance, an addition of ordinary share capital of USD 1,648 dollar (RMB 0.01 million) and additional paid-in capital of RMB 660.16 million was recorded. On August 24, 2016, the Company entered into a definitive agreement (“Definitive Agreement”) to acquire 100% equity interest in Gold Master HK. Under the terms of the Definitive Agreement, Yintech has agreed to acquire a 100% equity stake in Gold Master HK for a combination of cash and share consideration. The Company issued 200,890,940 ordinary shares in total. The deal was completed on August 31, 2016, and RMB1,146.24 million was recorded as additional paid-in capital of Yintech. In 2016, 12,002,820 ordinary shares were issued and RMB 10.75 million were recognized as additional paid-in capital due to the exercise of stock options and RSUs. In 2017, 47,573,600 ordinary shares were issued and RMB 36.93 million were recognized as additional paid-in capital due to the exercise of stock options and RSUs. |
TREASURY STOCK
TREASURY STOCK | 12 Months Ended |
Dec. 31, 2017 | |
TREASURY STOCK | |
TREASURY STOCK | 16. TREASURY STOCK On June 2, 2017, the Company’s Board of Directors authorized a share repurchase program, under which the Company is authorized to purchase up to USD 30.0 million worth of its outstanding American depositary shares (“ADSs”) over the following 12 months. The Company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means depending on market conditions and other factors as well as subject to relevant rules under United States securities regulations. As of December 31, 2017, approximately 11.33 million ordinary shares were repurchased for approximately USD 5.55 million in cash under the share repurchase program. All the ordinary shares repurchased above are no longer outstanding and pending for cancellation and are included as treasury stock. |
DIVIDEND DISTRIBUTION
DIVIDEND DISTRIBUTION | 12 Months Ended |
Dec. 31, 2017 | |
DIVIDEND DISTRIBUTION | |
DIVIDEND DISTRIBUTION | 17. DIVIDEND DISTRIBUTION Prior to the completion of Reorganization, the Board of Directors of Rong Jin Hui Yin, Jin Xiang Yin Rui and Yin Tian Xia Technology announced dividend of RMB 831.88 million in 2015. As at December 31, 2015, outstanding dividend payable was RMB 126.88 million, which was paid subsequently in February 2016. On March 7, 2017, the Board of Directors approved an annual dividend distribution of USD 0.04 per ordinary share to shareholders of record as of the close of business on March 23, 2017, representing RMB 385.11 million in total, and was paid out of the Company’s capital premium account in March, 2017. |
RETAINED EARNINGS
RETAINED EARNINGS | 12 Months Ended |
Dec. 31, 2017 | |
RETAINED EARNINGS | |
RETAINED EARNINGS | 18. RETAINED EARNINGS Pursuant to the Company Law of the PRC, each of the PRC entity is required to appropriate 10% of its net income to the statutory reserve on an annual basis until the aggregated amount of the reserve reaches 50% of its registered capital. Statutory reserve is not distributable. Subject to the approval of the shareholders, the statutory reserve may be used to offset accumulated losses, or converted into capital of the company. December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited PRC statutory reserve Unreserved retained earnings Total retained earnings As of December 31, 2016, Yin Tian Xia Technology has reached such maximum reserve amount and therefore stopped appropriation, while other PRC entities have not yet reached their respective maximum reserve amount. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2017 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | 19. ACCUMULATED OTHER COMPREHENSIVE INCOME Unrealized gain on available-for-sale Foreign Before tax Income Tax Net-of-tax Total RMB RMB RMB RMB RMB Balance at January 1, 2015 — — — — — Other comprehensive income before reclassification ) Amounts reclassified from accumulated other comprehensive income — ) ) ) Balance at December 31, 2015 — — — Other comprehensive income before reclassification ) Amounts reclassified from accumulated other comprehensive income — ) ) ) Balance at December 31, 2016 — — — Other comprehensive income before reclassification ) ) Amounts reclassified from accumulated other comprehensive income — ) ) ) Balance at December 31, 2017 ) ) Balance at December 31, 2017 in USD (Note2) (unaudited) ) ) The amounts reclassified out of accumulated other comprehensive income represent realized gains on the available-for-sale investments upon their sales, which were then recorded in “Trading gains / (losses), net” in the combined and consolidated statements of comprehensive income. |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2017 | |
NON-CONTROLLING INTERESTS | |
NON-CONTROLLING INTERESTS | 20. NON-CONTROLLING INTERESTS December 31, 2016 2017 2017 RMB RMB USD Unaudited Sina Shi Jin — Bo Zhong — Da Xiang Ping Tai ) — — Total ) Non-controlling interests related to Sina Shi Jin and Bo Zhong mainly represent the original investment, cumulative results of operations and changes in equity (deficit) attributable to non-controlling shareholders. Sina Shi Jin and Bo Zhong were acquired on May 31, 2017 and July 31, 2017 respectively (Note 4 — Acquisitions). Da Xiang Ping Tai was disposed on August 31, 2017 (Note 5 — Deconsolidation). |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES The Group’s leases are for the office premises. Future minimum lease payments under non-cancellable operating leases agreements as of December 31, 2017 are as follows. The Group’s leases do not contain any contingent rent payment terms. RMB Year ending December 31 2018 2019 2020 2021 2022 2023 and thereafter Total Rental expenses incurred under operating leases were RMB 24.43 million and RMB 46.65 million and RMB 78.01 million for the years ended December 31, 2015, 2016 and 2017, respectively. |
COMMISSIONS AND FEES
COMMISSIONS AND FEES | 12 Months Ended |
Dec. 31, 2017 | |
COMMISSIONS AND FEES | |
COMMISSIONS AND FEES | 22. COMMISSIONS AND FEES Year ended December 31, 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Spread fees Trading commissions, net Overnight fees, net Securities service fee — — Total The Group earns trading commissions, spread fees and overnight fees from its operation on Tianjin and Guangdong Exchanges, which are settled on a daily basis. The Group earns trading commissions from its operation on Shanghai Gold Exchange and the Futures Commodity Exchange, which are settled on a monthly basis. The Group earns securities service fee from its securities service business, which are amortized over the prescribed contract period. Spread fees are earned based on the quantity of the underlying commodities of the customer’s trades. The amount of the spread fees for each type of spot commodity contract is fixed and set by the Tianjin and Guangdong Exchanges and varies by commodity types. Trading commissions are generated based on the notional trading transaction value of the customers at the opening and closing of a position. Overnight fees are generated from customers who hold a long or short position overnight to the next trading day. The spread fees, standard trading commission rate and overnight fees for each commodity are determined by the Exchanges where such spot commodity contract is traded. In June 2016, Tianjin Exchange launched a new trading rule and the New Mechanism, under which the Group only takes the broker role in customer deals and does not take positions any more. As a result, the Group started not to earn spread fees or overnight fees, but only earn trading commissions in Tianjin Exchange. The new trading mechanism and the old version were in parallel run until the New Mechanism fully replaced the old mechanism by the end of 2016. Cash rebates are offered to customers on the trading commission and overnight fees. The cash rebates are determined by the Group on an individual customer basis and paid monthly. The rebates are deducted from the gross trading commission or overnight fees. Total customer rebates recognized during the years ended December 31, 2015, 2016 and 2017 were RMB 166.89 million, RMB 255.64 million and RMB 108.83 million, respectively. As at December 31, 2016 and 2017, outstanding customer rebates payable were RMB 14.83 million and nil, respectively. Starting from June 2017, no more trading commissions, spread fees and overnight fees were generated from the Group’s operation in Tianjin and Guangdong Exchanges, and cash rebates was suspended from October 2017. |
TRADING GAINS _ (LOSSES)
TRADING GAINS / (LOSSES) | 12 Months Ended |
Dec. 31, 2017 | |
TRADING GAINS / (LOSSES) | |
TRADING GAINS / (LOSSES) | 23. TRADING GAINS / (LOSSES) Trading gains / (losses) consists of realized and unrealized gains and losses from exchange-traded spot commodity contracts with customers and special members, commodity futures contracts, risk and return transfer agreements with third party fund, the realized gain from trading of physical commodities and realized gains and losses from the sales of AFS investments, all represented on a net basis. Pursuant to the risk and return transfer agreements, the Group’s gains / (losses) arising from exchange-traded spot commodity contracts with customers were transferred to, and absorbed by the third party fund during the contract periods. Fair value movements on the risk and reward transfer agreement were recognised as trading gains / (losses). Settlements were made on a monthly basis. The following table presents trading gains / (losses) for the years ended December 31: Year ended December 31, 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Spot commodity contracts ) ) Risk and return transfer arrangement ) ) Commodity futures contracts ) Trading of physical commodities ) ) Short-term investments Total |
OTHER REVENUES
OTHER REVENUES | 12 Months Ended |
Dec. 31, 2017 | |
OTHER REVENUES | |
OTHER REVENUES | 24. OTHER REVENUES Year ended December 31, 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Gain on disposal of subsidiaries — — VAT refund — Sales of silver products Sales of application services Government grants and others Awards from the Exchanges — — Total Government grants and others primarily consist of financial subsidies granted by provincial and local governments for operating a business in their jurisdiction. The government grants are non-recurring in nature and there is no assurance that the Group will continue to receive such government grants in the future. During the years ended December 31, 2015 and 2016, the Group recognized awards of RMB 38.01 million and RMB 90.53 million, respectively, from the Exchanges based on customer trading volume of the Group. Awards from the Exchanges are recognized when there is reasonable assurance that they will be received and amounts can be reasonably estimated. Given the termination of trading in Guangdong and Tianjin Exchange in 2017, there is no award from the exchanges recognized in 2017. During the year ended December 31, 2016 and 2017, the Group recognized VAT refund of RMB 45.31 million and RMB 33.52 million, respectively, based on the VAT preferenctial policy issued by the State Administration of Tax. VAT refund is recoginized when there is resonable assurance that they will be received and amounts can be reasonably estimated. VAT refund is first recorded to offset the corresponding cost recognized by the Group, any excess refund is recognized in other revenue. The outstanding VAT refund receivable is RMB 43.22 million and RMB 7.69 million as at December 31, 2016 and 2017, respectively. In 2017, the Group disposed eight subsidiaries, including Sheng Ding, Da Xiang Ping Tai, Tian Jin Da Xiang, Da Xiang Shun Yi, Rong Jin Hui Yin, Jin Xiang Yin Rui, Yin Ru Yi and Yin Tian Xia Products, to thrid parties. The Group realized a disposal gain of RMB 87.22 million in total. As at December 31, 2017, the outstanding receivables related to these disposals is RMB 99.00 million. |
ADVERTISING AND PROMOTION
ADVERTISING AND PROMOTION | 12 Months Ended |
Dec. 31, 2017 | |
ADVERTISING AND PROMOTION | |
ADVERTISING AND PROMOTION | 25. ADVERTISING AND PROMOTION Advertising and promotion consists of market promotion cost and sales agent cost paid to third party companies. Year ended December 31, 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Advertising expenses Sales agent expenses — Total The sales agent expenses are related to fees to external sales agent companies for their customer development services on the Gold Exchanges and the Futures Commodity Exchanges. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES | |
INCOME TAXES | 26. INCOME TAXES Cayman Islands and BVI Under the current laws of the Cayman Islands and BVI, the Group is not subject to tax on income or capital gains. Additionally, upon payments of dividends by Yintech to its shareholders, neither Cayman Islands nor BVI withholding tax will be imposed. Hong Kong Under the Hong Kong tax laws, subsidiaries in Hong Kong are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. PRC The subsidiaries incorporated in PRC file separate tax returns in the PRC. The PRC statutory income tax rate is 25% according to the Corporate Income Tax (“CIT”) Law. Under the Corporate Income Tax Law and its implementation regulations issued by the State Council, a 10% PRC withholding tax is applicable to dividends payable by a resident enterprise to investors that are non-resident enterprises, to the extent such dividends are derived from sources within the PRC, subject to any reduction set forth in applicable tax treaties. Substantially all the pretax income of the Group is derived from sources within the PRC. United States The Company’s subsidiary incorporated in the United States was subject to income tax charges calculated on the basis of the tax laws enacted. Income tax expense consists of the following for the years ended 31 December, and is substantially all attributable to the PRC: Year ended December 31, 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Current tax expense Deferred tax expense/(benefit) ) ) Total income tax expense The reconciliation between the actual income tax expense and income tax computed by applying the PRC Corporate Income Tax rate of 25% to income before income taxes for the years ended December 31 is as follows: Year ended December 31, Note 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Income taxes at PRC statutory income tax rate of 25% Differential tax rates for non-PRC entities (i) Preferential income tax rate inside the PRC (ii) ) ) ) ) Change in the beginning of the year balance of the valuation allowance due to a change in judgement about the realizability of deferred tax assets — — Current year change of valuation allowance on deferred tax assets — — Distribution tax on PRC earnings — Nondeductible share-based compensation expense Tax savings from additional deductions on certain research and development expenses (iii) — ) ) ) Non-taxable gain on disposal of subsidiaries — — ) ) Other, net ) ) ) Reported income taxes Effective tax rate % % % % (i) The pre-tax losses from non-PRC entities consist primarily of administration expenses, including share-based compensation. (ii) Yin Sai was granted the ‘‘qualified software enterprise’’ status in 2013 and is eligible for an income tax exemption for the years ended December 31, 2013 (the year in which it starts making profit) and 2014, and is entitled to a 50 percent reduction of income tax rate for the years ended December 31, 2015 to 2017. For the period from January 2018 to August 2018, Yin Sai is entitled to a preferential tax rate of 15% with the qualification as an eligible “high-tech enterprise”. The Group is in the process of renewing this qualification for the period thereafter. Yin He You was granted the “qualified software enterprise” status in 2016 and is eligible for an income tax exemption for the years ended December 31, 2015 (the year in which it starts making profit) and 2016, and is entitled to a 50 percent reduction of income tax rate for the years ended December 31, 2017 to 2019. Gold Master Network was granted the “qualified software enterprise” status in 2016 and is eligible for an income tax exemption for the years ended December 31, 2016 (the year in which it starts making profit) and 2017, and is entitled to a 50 percent reduction of income tax rate for the years ended 31 December 2018 to 2020. Per share impact of such tax holiday is RMB 0.05, RMB 0.13 and RMB 0.09 for the years ended December 31, 2015, 2016 and 2017, respectively. (iii) This amount represents tax incentives relating to the research and development expenses of certain operating subsidiaries in the PRC, which enables the claim of an additional tax deduction amounting to 50% of the qualified research and development expenses incurred. In assessing the recoverability of deferred tax assets, management considers whether some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment. Recovery of substantially all of the group’s deferred tax assets is dependent upon the generation of future income, exclusive of temporary differences and carryforwards. Deferred tax assets represent the net tax effects of operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax liabilities principally represent the tax effects of undistributed earnings of a PRC subsidiary and temporary difference between the carrying amounts of intangible assets acquired in business acquisitions and the amounts used for income tax purpose. Significant components of the Group’s deferred tax assets/liabilities are presented below: Year ended December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited Net operating loss carryforwards Accrued social insurance Advertising expense carryforwards Deferred revenue — Impairment loss — Unrealized loss on AFS investments — Total deferred tax assets Less: Valuation Allowance — ) ) Total net deferred tax assets Undistributed earnings of PRC entities ) ) ) Intangible assets ) ) ) Unrealized gain on AFS investments — ) ) Equipment and leasehold improvements ) ) ) Total deferred tax liabilities ) ) ) Deferred tax assets, net Deferred tax liabilities, net ) ) ) The valuation allowance for deferred tax assets as of January 1, 2016 and 2017 is nil. No valuation allowance was recognised in 2016 as the Group believed that there was a reasonable expectation of the Company’s future profitability. The net change in the total valuation allowance was an increase of RMB 16.49 million in 2017, comprising of total increase of RMB 83.30 million, and total decrease of RMB 66.81 million due to disposal of relevant subsidiaries. The valuation allowance as of December 31, 2017 was RMB 16.49 million, which primarily related to net operating loss carryforwards, advertising expense carryforwards, and accrued social insurance that, in the judgment of management, are not more-likely than-not to be realized. As at December 31, 2017, the Group has a net operating loss carryforwards and advertising expense carryforwards for PRC income tax purpose of approximately RMB 84.81 million, RMB 56.43 million, respectively. Net operating loss carryforwards will expire between 2018 and 2022. Advertising expense carryforwards do not expire. The tax effect of the increase in all operating loss carryforwards for which a benefit was recognized for the years ended December 31, 2015, 2016 and 2017 were RMB 3.36 million, RMB 40.84 million and RMB 20.84 million, respectively. At December 31, 2016 and 2017, the Group had unrecognized tax benefit of RMB 3.84 million and nil, respectively. The unrecognized tax benefits pertain to income recognition under PRC’s tax laws and expense adjustments. The amount of unrecognized tax benefits which would have an impact on the Group’s effective tax rate are RMB 3.84 million, RMB 3.84 million and nil as at December 31, 2015, 2016 and 2017, respectively. RMB Balance at December 31, 2015 and 2016 Decrease due to disposal of the subsidiary ) Balance at December 31, 2017 — As of and for the year ended December 31, 2015, interest related to unrecognized tax benefits was RMB 0.6 million. As of and for the year ended December 31, 2016, interest related to unrecognized tax benefits was RMB 1.29 million and RMB 0.69 million, respectively, which was recorded as part of the income tax payable and income tax expense in the combined and consolidated financial statements. No interest related to unrecognized tax benefit was accrued in 2017 due to the disposal of relevant subsidiaries. The Group’s only major jurisdiction is China where tax returns generally remain open and subject to examination by tax authorities for tax years 2012 onwards. Prior to the Reorganization, the combined financial statements included the combined financial position and results of the Transferred Entities. Upon the consummation of the Reorganization on November 18, 2015, all of the retained earnings accumulated prior to the Reorganization was declared and paid or payable to a wholly-owned PRC subsidiary of Win Yin, for which no withholding tax was required. The Group has considered temporary differences pertaining to all investment in subsidiaries including the determination of the indefinite reinvestment assertion that would apply to each foreign subsidiary. The Group evaluated each entity’s historical, current business environment, except for a distribution of RMB 100 million made during the year ended December 31, 2017, the Group plans to distribute an additional RMB 200 million from the net income recognized during the year ended December 31, 2017 from PRC operating entities to offshore holding companies, and indefinitely reinvest the remaining earnings in its respective jurisdiction for purpose of future business expansion. As of December 31, 2017, the Group provided deferred tax liability of RMB 20 million for the expected earnings distribution of RMB 200 million as mentioned above based on the withholding tax rate of 10%. After setting aside the expected distribution of RMB 200 million, the gross remaining balance with respect to the undistributed earnings from the foreign subsidiaries is approximately RMB 1.61 billion. The Group has not provided deferred tax liability for the remaining temporary differences that are indefinitely reinvested. The unrecognized deferred tax liability is approximately RMB 161 million. If future changes of business environment make the Group to change its plan to allow some or all of the undistributed earnings to be remitted offshore, such temporary difference would become taxable. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 27. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2015, 2016 and 2017. The basic weighted average number of ordinary shares for the years ended December 31, 2015 are based on the 1,000,000,000 ordinary shares issued by Yintech upon the consummation of the Reorganization on November 18, 2015, as if those shares were issued as of the earliest date presented. Year ended December 31, 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Net Income attributable to Yintech Basic weighted average number of ordinary shares outstanding Effect of dilutive share options and RSUs Dilutive weighted average number of ordinary shares Basic earnings per share Diluted earnings per share |
EQUITY SETTLED SHARE-BASED TRAN
EQUITY SETTLED SHARE-BASED TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
EQUITY SETTLED SHARE-BASED TRANSACTIONS | |
EQUITY SETTLED SHARE-BASED TRANSACTIONS | 28. EQUITY SETTLED SHARE-BASED TRANSACTIONS Win Yin granted stock options and restricted share units (“RSUs”) on Win Yin’s shares to certain directors, eligiable person and employees of the Transfered Entities. Compensation cost related to the grant of the share options and RSUs are recorded as expense with a corresponding credit to equity. Pursuant to the Reorganization completed on November 18, 2015, Yintech became the holding company of the Transferred Entities and the Group. In connection with the Reorganization, Yintech issued stock options and RSUs on its shares to the Group’s employees as replacement of the stock options and RSUs issued by Win Yin. The terms and conditions of the stock options, such as vesting and exercisability, remain the same. (a) Stock option In 2016 and 2017, Yintech granted a total of 63,741,271 and 10,000,000, respectively, stock option to certain directors, eligible person and employees. No stock options were granted in 2015. The stock options are vested during the vesting period. Upon vesting, each stock option shall be entitled to the purchase of one ordinary share in the share capital of Yintech before it lapses. Stock option activity during the periods indicated is as follows: Weighted Weighted average average remaining Aggregate Number exercise contractual intrinsic of options price term value USD RMB Balance at January 1, 2015 Granted — — — — Exercised — — — — Forfeited ) ) Expired — — — — Balance at December 31, 2015 Exercisable at December 31, 2015 — — — — Balance at January 1, 2016 Granted Exercised ) — ) Forfeited ) ) Expired — — — — Balance at December 31, 2016 Exercisable at December 31, 2016 Weighted Weighted average average remaining Aggregate Number exercise contractual intrinsic of options price term value USD RMB Balance at January 1, 2017 0.370 Granted 0.500 ) Exercised ) 0.175 — ) Forfeited ) 0.213 ) Expired — — — — Balance at December 31, 2017 0.361 Exercisable at December 31, 2017 0.292 The weighted average grant date fair value of options granted during the years ended December 31, 2016 and 2017 was RMB 15.19 million and RMB 8.29 million, respectively. The Company didn’t grant any stock options in 2015 due to the Reorganization. At December 31, 2017, there was RMB 31.57 million of total unrecognized compensation cost related to unvested stock options. That cost is expected to be recognized over a weighted average period of 1.23 years. During the years 2015, 2016 and 2017, compensation cost recognized in earnings in relation to stock options are RMB 21.21 million, RMB 23.18 million, and RMB 78.12 million, respectively. No income tax benefit was recognized on the share-based compensation. Fair value of share options and assumptions The estimate of the fair value of the share options granted is measured based on a binomial lattice model. The contractual life of the share option is used as an input into this model. Expectations and staff turnover rate are incorporated into the binomial lattice model. 2015 2016 2017 RMB RMB RMB Expected volatility (expressed as weighted average volatility) — % % Option life — 5.97-8.00 5.64-9.32 Expected dividends — 0-1.8 % 0-1.8 % Risk-free interest rate — 1.43%-1.94 % 1.43%-1.94 % Because Yintech’s shares did not have sufficient trading history at the time the options were issued, the expected volatility was based on the historical volatilities of comparable publicly traded companies engaged in the similar industry. Changes in the subjective input assumptions could materially affect the fair value estimate. Share options were granted under a service condition. This condition has not been taken into account in the grant date fair value measurement of the services received. There was no market conditions associated with the share option grants. (b) Restricted share units In 2015, Win Yin granted a total of 12,665,000 RSUs to certain directors, eligible person and employees. In 2016 and 2017, Yintech granted a total of 31,924,995 and 39,877,700 RSUs, respectively, to certain directors, eligible person and employees. The RSUs are vested during the vesting period, subject to the fulfillment of certain operational and/or financial performance targets as set by the Board, if any, that are probable of being met. Upon vesting, each RSU shall be entitled to the transfer or issue of one ordinary share in the share capital of Yintech. Weighted average Aggregate Number remaining intrinsic of units contractual value Balance at January 1, 2015 — — — Granted Vested — — — Forfeited ) ) Balance at December 31, 2015 Balance at January 1, 2016 Granted Vested ) — ) Forfeited ) ) Balance at December 31, 2016 Balance at January 1, 2017 Granted Vested ) — ) Forfeited ) ) Balance at December 31, 2017 The weighted average grant date fair value of RSUs granted during the years ended December 31, 2015, 2016 and 2017 was RMB 23.40 million, RMB 118.76 million and RMB 49.21 million. As of December 31, 2015, 2016, and 2017, there was RMB 8.94 million, RMB 5.38 million and RMB 11.41 million respectively, of total unrecognized compensation cost related to unvested RSUs. That cost is expected to be recognized over a weighted average period of 2.36 years. In 2015, 2016 and 2017, compensation cost recognized in earnings in relation to RSUs is RMB 9.77 million, RMB 140.63 million and RMB 91.60 million respectively. No tax benefit was recognized on the share-based compensation. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 29. RELATED PARTY TRANSACTIONS (a) Acquisition of Forthright Group On December 29, 2017, the Group acquired 100% of the shares of the Forthright Group with a total consideration of approximately RMB 12.81 million. The Forthright Group was previously wholly owned by one of the Company’s Founding Shareholders. Upon completion of this acquisition, RMB 16.56 million was recognized as goodwill accordingly. (b) Acquisition of Forthright International On December 29, 2017, the Group acquired 100% of the shares of the Forthright International with a total consideration of approximately RMB 2.12 million. Forthright International was previously wholly owned by Win Yin. Upon completion of this acquisition, RMB 1.34 million was recognized as goodwill accordingly. (c) Fund investments managed by Chun Da. As at December 31, 2017, the Group held RMB 154.18 million (net of fair value loss) in fund investments managed by Chun Da. Chun Da is a wholly owned subsidiary within the Group which primarily provides asset management services. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 30. SEGMENT INFORMATION The Group’s chief operating decision maker has been identified as the Chief Executive Officer who reviews the consolidated results of operation when making decisions about allocating resources and assessing performance of the Group. The Group operates and manages its business as a single segment. Substantially all of the Group’s revenue for the years ended December 31, 2015, 2016 and 2017 were generated from the PRC. As of December 31, 2016 and 2017, respectively, substantially all of long-lived assets of the Group were located in the PRC. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 31. SUBSEQUENT EVENTS Management has considered subsequent events through April 27, 2018, which was the date these consolidated financial statements were issued. On March 13, 2018, upon the approval of the Company’s Board of Directors, the Company declared an annual dividend of USD 0.02 per ordinary share to shareholders of record as of the close of business on March 27, 2018, representing RMB 178 million in total. |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of preparation | Basis of preparation The combined and consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). |
Principles of combination and consolidation | Principles of combination and consolidation Prior to the Reorganization, the combined financial statements include the financial statements of the Transferred Entities since the date of incorporation, and were prepared on a combined basis. Following the Reorganization, the consolidated financial statements include the accounts of Yintech and its subsidiaries, VIEs and VIEs’ subsidiaries, in which the Company is the ultimate primary beneficiary. All significant intercompany balances and transactions have been eliminated upon combination and consolidation. To comply with PRC legal restrictions on foreign ownership of companies that operates securities investment advisory, asset management and other restricted services, the Group operates these regulated business in China through certain PRC domestic companies, namely Ran Yu, Bei Xun and Hong Feng (collectively, the “VIEs” and each a “VIE”), whose equity interests are held by their nominee shareholders. The registered capital of these VIEs are funded by the Company through its wholly owned subsidiary, namely Xie Luo, and recorded as interest-free loans to these nominee shareholders. These loans were eliminated with the capital of the VIEs during consolidation. The Company began to consolidate Ran Yu, Bei Xun and Hong Feng as VIEs in January, January and October 2017, respectively. Under various contractual agreements, nominee shareholders of the VIEs are required to transfer their ownership in these entities to Xie Luo when permitted by PRC laws and regulations or to designees of Xie Luo at any time for the amount of loans outstanding. All voting rights of the VIEs are assigned to Xie Luo and Xie Luo has the right to appoint all directors and senior management personnel of the VIEs. The Company has also entered into exclusive service agreements with the VIEs, under which Xie Luo provides business consulting and other services to the VIEs with service fee equivalent to 100% of the VIEs’ net profits. In addition, nominee shareholders of the VIEs have pledged their shares in the VIEs as collateral for the non-payment of loans or for the technical and other services fees due to Xie Luo. The principal terms of the agreements entered into amongst the VIEs, their respective shareholders and Xie Luo are further described below. Loan Agreement. Pursuant to the Loan Agreement, Xie Luo agrees to lend interest free loans to nominee shareholders and the VIEs with sole purpose for payment of paid-in capital of the VIEs and their daily operation, respectively. The amount of loan depends on the written loan granting notice. Pursuant to the Loan Agreement, the term of loans is 10 years, nominee shareholders and the VIEs should repay the loan, and any other payables by means that is acceptable to Xie Luo on expiry date. These loans were eliminated with the capital and payables of the VIEs during consolidation. Exclusive Services Agreement. Pursuant to the Exclusive Services Agreement, Xie Luo has the exclusive right to provide business consulting services, including marketing, operation, business management, training and other customized services, to the VIEs. Without Xie Luo’s prior written consent, the VIEs agree not to accept the same or any similar services provided by any third party. The VIEs agree to pay service fees on a yearly basis or at any other time when Xie Luo considers it is necessary and at an amount equivalent to 100% of The VIEs’ net profits as confirmed by Xie Luo. Pursuant to the Exclusive Services Agreement, Xie Luo agrees to absorb all the profits and losses of the VIEs, and will provide financial support when the VIEs come across operation loss or serious business difficulties. The term of this agreement is 10 years, and the agreement will be automatically extended upon the expiry. Exclusive Purchase Option Agreement. Pursuant to the Exclusive Purchase Option Agreement, the nominee shareholders of the VIEs have irrevocably granted Xie Luo an exclusive option to purchase, or have its designated person(s) to purchase, at its discretion, to the extent permitted under PRC law, all or part of such shareholders’ equity interests in the VIEs. The purchase price should equal to the minimum price required by PRC law or such other price as may be agreed by the parties in writing. Without Xie Luo’s prior written consent, the nominee shareholders of the VIEs have agreed that the VIEs shall not amend the articles of association, increase or decrease the registered capital, sell or otherwise dispose of their assets or beneficial interest, provide any loans, or distribute dividends to the shareholders, and the shareholders shall not offer to sell, transfer, gift, pledge, or otherwise dispose all or part of their equity interests in the VIEs. These agreements will remain effective until all equity interests of the VIEs have been transferred or assigned to Xie Luo or its designated person(s). Powers of Attorney. Pursuant to the Powers of Attorney, each nominee shareholder of the VIEs has irrevocably entrust all their rights to Xie Luo or its designated person(s). All shareholder rights, including, but not limited to, voting on all matters of the VIEs, signing on all documents of the VIEs that require shareholder approval, appointing directors, executive officers and major financial personnel, deciding to carry out liquidation of the VIEs, keeping the company seal, financial seal and other materials, items or information which can control the VIEs’ daily operation and disposing of all or part of the shareholder’s equity interest in the VIEs. Xie Luo is also entitled to appoint and change the entrustee to act as exclusive attorney in fact of the shareholders of the VIEs with prior notice to such shareholders. Pursuant to the Powers of Attorney, Xie Luo has rights to know the key information of the VIEs, including but not limited to, operating status, clients’ information, employee data and financial information. The power of attorney will remain in force until the nominee shareholders have transferred all of their equity interest to Xie Luo or its designated person(s), or Xie Luo provides written consent to terminate the powers of attorney. Equity Interest Pledge Agreement. Pursuant to the Equity Interest Pledge Agreement, nominee shareholders of the VIEs have pledged all of their equity interest in the VIEs to Xie Luo to guarantee the fulfillment of obligations under the contractual agreements, which include the Loan Agreement, the Powers of Attorney, Exclusive Option Agreement, Exclusive Service Agreement, Intellectual Property License and Transfer Agreement, and Equity Interest Pledge Agreement. If any of contractual obligations are breached under these agreements, Xie Luo, as pledgee, will be entitled the rights to dispose all or part of the pledged equity interests of any nominee shareholders, even the one does not breach the contractual obligations. The prior rights are given to compensate the service fee, compensation of breaching contracts (if any), interest, compensatory payment, etc, from the proceeds of pledged equity interest disposal. Each of the shareholders of the VIEs agrees that, during the term of the equity interest pledge agreements, he or she will not dispose of the pledged equity interests or create or allow creation of any encumbrance on the pledged equity interests without the prior written consent of Xie Luo. The Equity Interest Pledge Agreements remain effective until all the contractual arrangements are terminated, the VIEs and the shareholders discharge all their obligations under the contractual arrangements, or Xie Luo obtains all of equity interests of the VIEs under the terms of Exclusive Option Agreement . Intellectual Property License and Transfer Agreement. Pursuant to the Intellectual Property License and Transfer Agreement, the VIEs have irrevocably granted Xie Luo an exclusive right to acquire any or all of the intellectual property rights owned by the VIEs. Before acquiring intellectual property of the VIEs, Xie Luo has an exclusive license to use for free any or all of the intellectual property rights owned by the VIEs from time to time. Without Xie Luo’s prior written consent, the VIEs agree not to transfer or license any intellectual property rights to any third parties. In addition, the VIEs has granted Xie Luo the right to purchase any or all of the intellectual property rights of the VIEs at the lowest price permitted under PRC law. The Company believes that the contractual arrangements among its wholly owned subsidiary, the VIEs and its shareholders are in compliance with the current PRC laws and legally enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIEs and its subsidiary in the combined and consolidated financial statements. The Company’s ability to control its VIEs also depends on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholders’ approval in the VIEs. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable. In addition, if the legal structure and contractual arrangements with its VIEs were found to be in violation of any future PRC laws and regulations, the Company may be subject to fines or other actions. The Company believes the possibility that it will no longer be able to control and consolidate its VIEs will occur as a result of the aforementioned risks and uncertainties is remote. The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents of the VIEs and their subsidiaries taken as a whole, which were included in the Company’s consolidated balance sheets and statements of comprehensive income (loss) with intercompany transactions eliminated: Year ended December 31, 2016 2017 2017 RMB RMB (Note2)USD Unaudited Total assets — Total liabilities — Year ended December 31, 2016 2017 2017 RMB RMB (Note2)USD Unaudited Net Revenues — Net Expenses — ) ) Year ended December 31, 2016 2017 2017 RMB RMB (Note2)USD Unaudited Cash flows from operating activities — Cash flows from investing activities — ) ) Cash flows from financing activities — Net increase in cash — The Company began to consolidate Ran Yu, Bei Xun and Hong Feng as VIEs in January, January and October, 2017, respectively. As of December 31, 2017, the total assets for the consolidated VIEs were RMB 258.47 million, which mainly comprised of RMB 57.39 million in cash and short-term investments, and RMB 201.08 million in the remaining balances include accounts receivable, other assets, intangible assets, equipment and leasehold improvement, deferred tax assets and goodwill. As of December 31, 2017, total liabilities for the consolidated VIEs were RMB 28.43 million, which mainly included RMB 16.7 million in accounts payable, other liabilities and accrued employee benefits, RMB 5.52 million in income taxes payable, and RMB 6.21 million in deferred revenues. Under the contractual arrangements with the VIEs, the Company through its wholly owned subsidiary, Xie Luo, has the power to direct activities of the VIEs and can have assets transferred freely out of the VIEs without restrictions. Therefore, the Company considers that there is no asset of VIEs that can only be used to settle obligations of the respective VIEs, except for registered capital and PRC statutory reserves of VIEs. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company or Xie Luo. |
Currency translation for financial statements presentation | Currency translation for financial statements presentation The accompanying combined and consolidated financial statements are reported in Renminbi (“RMB”). Yintech’s functional currency is USD, and the reporting currency is RMB. Yintech’s subsidiaries determine their functional currencies based on the criteria of FASB ASC 830, Foreign Currency Matters. The combined and consolidated financial statements are translated into RMB using the exchange rate at the balance sheet date for assets and liabilities, and the average exchange rate in the period for revenues, expenses, gains and losses. Any translation gains or losses are recorded in other comprehensive income / (loss). Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date. Exchange gains and losses are included in earnings as a component of other revenues. Translations of amounts from RMB into USD for the convenience of the reader have been calculated at the exchange rate of RMB 6.5063 per USD 1.00 on December 29, 2017, the last business day for the year ended 31 December, 2017, as published on the website of the United States Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at such rate. The USD convenience translation is not required under U.S. GAAP and all USD convenience translation amounts in the accompanying combined and consolidated financial statements are unaudited. |
Use of estimates | Use of estimates The preparation of combined and consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the combined and consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Group evaluates its estimates and judgments including those related to: the fair value of stock based compensation; the useful lives and recoverability of equipment and leasehold improvements and intangible assets; goodwill, the purchase price allocation and fair value of non-controlling interests with respect to business combinations; the fair value of investments; the carrying value of receivables from customers; the determination of the allowance for doubtful accounts; the liabilities for unrecognized tax benefits; indefinitely reinvested earnings; and the valuation allowance for deferred tax assets. |
Derivative financial instruments | Derivative financial instruments The Group recognizes all derivative instruments as either assets or liabilities in the balance sheet at their respective fair values. In the normal course of business and as a comprehensive member of the Tianjin and Guangdong Exchanges, the Group enters into transactions in derivative financial instruments with customers. As a comprehensive member of the Tianjin and Guangdong Exchanges, the Group is required to serve as the counterparty of the customer trading of precious metals through exchange-traded spot commodity contracts. The Tianjin and Guangdong Exchanges quote trading prices of the spot commodity contracts with reference to the prices from relevant international and domestic spot commodities markets. The Group does not apply hedge accounting, as all derivative financial instruments are held for trading purposes and therefore recorded at fair value with changes reflected in earnings. Contracts with customers are traded either as long or short positions and the notional amount and fair values of the contracts in a loss position are not offset against notional amount and the fair value of contracts in a gain position. Gains and losses (realized and unrealized) on all derivative financial instruments are shown as a component of trading gains / (losses), net. In accordance with the Tianjin and Guangdong Exchanges’ requirements, the Group’s customers must meet, at a minimum, the deposit requirements established by the Tianjin and Guangdong Exchanges at which the spot commodity contracts are traded. Therefore, exchange traded spot commodity contracts generally do not give rise to significant counterparty exposure due to the cash settlement procedures for daily market movements (“variation margin”) and the deposit requirements of the Tianjin and Guangdong Exchanges. The variation margin payments represent the daily settlement of the outstanding exposure of the derivative contract. Likewise, as the counterparty to customer trades, the Group is also required to place deposits with custodian banks of the Tianjin and Guangdong Exchanges to meet the minimum deposit requirements. Such amount placed at banks to meet the minimum deposit requirements is included in deposits with clearing organizations and restricted from withdrawal. In 2015, 2016 and 2017, the Group traded commodity futures contracts on the Shanghai Futures Exchange to manage its exposure on spot commodity contracts and physical trading of raw silver. Commodity futures contracts are recorded at fair value with changes reflected in earnings. Gains and losses from these contracts are recorded in trading gains / (losses), net. At the end of December 31, 2016 and 2017, the Group has no commodity futures contracts outstanding. In 2015, the Group entered into risk and return transfer agreements with a third party fund. Gains and losses from the risk and return transfer agreements are recorded in trading gains / (losses), net. In 2016, under the New Mechanism of Tianjin Exchange, the Group only takes the broker role in customer deals and does not take positions any more. As a result, the Group started to only earn trading commissions in Tianjin Exchange. By December 31, 2016, the New Mechanism has fully replaced the old mechanism and no trading gains / (losses) from Tianjin Exchange will be recorded from then on. In 2017, with the termination of trading on the Guangdong Exhange and the suspension of trading on the Tianjin Exchange, there will be no more gains or losses arising from spot commodity contracts or the risk and return transfer agreements. |
Entrusted bank balances held on behalf of customers | Entrusted bank balances held on behalf of customers Entrusted bank balances held on behalf of customers is the fund that Forthright Securities receives from customers for purpose of buying or selling securities on their behalf. The fund is deposited at designated entrusted bank accounts. |
Short-term investments | Short-term investments Short-term investments mainly include available-for-sale investments (“AFS investments”) and reverse repurchase agreements. AFS investments include wealth management products issued by banks, fund investments and trust investments managed by licensed asset management companies. These investments are recorded at fair value. Unrealized holding gains and losses on AFS investments, net of the related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive income until realized. Realized gains and losses from the sale of AFS investments are determined on a specific-identification basis and are recorded as trading gains / (losses). Reverse repurchase agreements are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. Interest and investment income are recognized when earned. |
Revenue recognition | Revenue recognition Revenue is recognized when all of the following conditions are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. These criteria as they relate to each of the following major revenue generating activities are described below. (i) Commissions and fees Commissions and fees are recorded on a trade-date basis. The Group earns trading commissions, spread fees and overnight fees from its operation on Tianjin and Guangdong Exchanges, which are settled on a daily basis. The Group earns trading commissions from its operation on Shanghai Exchange and the Futures Commodity Exchanges, which are settled on a monthly basis. Cash rebates on trading commissions and overnight fees offered by the Group to its customers are recorded as a reduction of revenue. (ii) Trading gains / (losses) Trading gains / (losses) consist of realized and unrealized gains and losses from exchange-traded spot commodity contracts, commodity futures contracts and risk and return transfer agreements, the realized gains from trading of physical commodities, and realized gains and losses from the sale of AFS investments, all presented on a net basis. Changes in fair value in relation to spot commodity contracts, commodity futures contracts and risk and return transfer agreements are recorded in trading gains / (losses), net on a daily basis as disclosed in the accounting policy of derivative financial instruments. Trading gains / (losses) on physical commodities are recognized when title passes and measured by the difference between the acquisition cost of the commodity and the cash received or receivable. (iii) Interest and investment income Interest income is recognized at the effective interest rate. Investment income is recognized when earned. (iv) Other revenues Other revenues primarily consist of gain on disposal of subsidiaries, income from sales of application services, sales of silver products, government grants, awards from the Exchanges and value-added-tax (“VAT”) refund. Gain on disposal of subsidiaries is recognized when the substantive control over the subsidiaries is transferred and the disposal consideration is received or there is a reasonable assurance that they will be received. Sales of application services comprise the sales of a license subscription bundled with customer support service during the license period. Revenue from sales of application services are recognized ratably over the term of the arrangement which is generally 1 year. During the period of the arrangement, the customer does not have the contractual right to take possession of the software at any time. Sales of silver products are recognized when goods are delivered at the customers’ premises which are taken to be the point in time when the customer has accepted the goods and the related risks and rewards of ownership. Revenue excludes value added tax. Government grants are recognized when there is reasonable assurance that they will be received and that the Group will comply with the conditions attaching to them. Grants that compensate the Group for expenses incurred are deducted in reporting the related expenses on a systematic basis in the same periods in which the expenses are incurred. Awards from the Exchanges and VAT refund are recognized when earned and there is reasonable assurance that they will be received and amounts can be reasonably estimated. |
Equipment and leasehold improvements | Equipment and leasehold improvements Equipment and leasehold improvements are stated at cost. Depreciation is provided on a straight-line basis using estimated useful lives of three to five years. Leasehold improvements are amortized over the shorter of the economic useful life of the improvement or the term of the lease. |
Advertising and promotion expenses | Advertising and promotion expenses Advertising expenses represent expenses for placing advertisements on television, radio and newspaper, as well as on Internet websites and search engines. Promotion expenses represent commissions paid to sales agents for bringing in new customers. Advertising and promotion cost are expensed as incurred. |
Defined contribution plan | Defined contribution plan Pursuant to relevant PRC regulations, the Group is required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at statutory rates as determined by local social security bureau. Contributions to the defined contribution plans are charged to the consolidated statements of income. The Group has no obligations for payment of pension benefits associated with the plans beyond the amount it is required to contribute. |
Stock based compensation | Stock based compensation The Group measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The Group recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, net of estimated forfeitures, provided that the cumulative amount of compensation cost recognized at any date at least equals to the portion of the grant-date value of such award that is vested at that date. Forfeiture rates are estimated based on historical and future expectations of employee turnover rates. Stock compensation expense, when recognized, is recorded as expense with the corresponding entry to additional paid-in capital. During 2017 the Company has adopted ASU 2016-09 which did not have any impact in the Company’s financial statements. In accordance with ASU 2016-09, the Company has made the accounting policy election to continue to estimate forfeitures based upon historical occurrences. |
Income taxes | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group presents any interest or penalties related to an underpayment of income taxes as part of its income tax expense. |
Provisions and contingent liabilities | Provisions and contingent liabilities Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Indefinite-lived intangible assets are assets that are not amortized as there is no foreseeable limit to cash flows generated from them. Intangible assets with finite useful lives are amortized over their estimated useful lives in the method that reflect the pattern in which the economic benefits of the intangible assets are consumed. |
Impairment of Goodwill | Impairment of Goodwill The Company assesses goodwill for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events. The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the two-step test. If the Company believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Company is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. |
Treasury Stock | Treasury Stock The Company accounts for treasury stock using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury stock account on the consolidated balance sheets. At retirement, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury stocks over the aggregate par value is allocated between additional paid-in capital (up to the amount credited to the additional paid-in capital upon original issuance of the shares) and retained earnings. |
Segment Reporting | Segment Reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Group has one single operating and reportable segment. (Note 30 – Segment Information) |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (‘‘FASB’’) issued ASU No. 2014-09, Revenue from Contracts with Customers, which outlines a comprehensive new revenue recognition model designed to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14 to defer the effective date to annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. A company is required to disclose sufficient quantitative and qualitative information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Companies are permitted to adopt the standard using a retrospective transition method (i.e., restate all prior periods presented) or a cumulative effect method (i.e., recognize the cumulative effect of initially applying the guidance at the date of initial application with no restatement of prior periods). However, both methods allow companies to elect certain practical expedients on transition that will help to simplify how a company restates its contracts. The Company has determined to adopt the standard using the cumulative effect method. The Group has evaluated the impact of this new standard, including its impact on the Group’s business processes, systems and controls, and determined it will not have a material effect on the consolidated financial statements other than additional disclosures required by the standard. The new standard will not affect the total revenues or operating earnings recognized for each contract, nor the timing of when those amounts are recognized. This is because substantially all of the Group’s contracts do not contain multiple-elements arrangement, and also the Company records revenue at a single point in time when service is delivered or completed. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall. Amendments in ASU 2016-01 are as follows: 1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; 2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; 3) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; 4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; 5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; 6) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; 7) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; 8) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The new standard is effective for annual reporting periods beginning after December 15, 2017. The Group has evaluated the impact of the new standard and it will not have a material effect on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this guidance are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which requires an entity to no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. The changes are effective for public business entities that are SEC filers, for annual and interim periods in fiscal years beginning after December 15, 2019. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In January 2017, the FASB issued No. 2017-01, Business Combinations (Topic 805), effective for the annual reporting period beginning after December 15, 2017, and interim period within that period. This update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of business. The Group has evaluated the impact this new standard, and it will not have a material effect on the consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation — Stock Compensation (Topic 718) Scope of Modification Accounting” which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Adoption of the Standard is required for annual and interim periods beginning after December 15, 2017 with the amendments in the update applied prospectively to an award modified on or after the adoption date. The Group has evaluated the impact of this new standard, and it will not have a material effect on the consolidated financial statements. In July 2017, the FASB issued ASU 2017-11, “Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815) (“ASU 2017-11”)”, which changes the classification of certain equity-linked financial instruments (or embedded features) with down round features. It also clarifies existing disclosure requirements for equity-classified instruments. The update is effective retrospectively for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted for all companies in any interim or annual period. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10)—Recognition and Measurement of Financial Assets and Financial Liabilities” which clarifies certain aspects of the guidance issued in ASU No. 2016-01. All entities may early adopt ASU No. 2018-03 for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted Update 2016-01. The Group has not early adopted this update and it will become effective on July 1, 2018. The Group has evaluated the impact of this new standard and it will not have material effect on the consolidated financial statements. In addition to those described above, the FASB has issued other accounting standards, none of which are expected to have a material impact on the Group’s consolidated financial statements when adopted. |
DESCRIPTION OF BUSINESS AND O39
DESCRIPTION OF BUSINESS AND ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | |
Schedule of subsidiaries, VIEs and VIEs' subsidiaries | As of December 31, 2017, Yintech has subsidiaries, VIEs and VIEs’ subsidiaries in countries and jurisdictions including the People’s Republic of China (“PRC”), Hong Kong, United States of America (“USA”), British Virgin Islands (“BVI”) and New Zealand (“NZ”). Details of the subsidiaries, VIEs and VIEs’ subsidiaries of the Company are set out below: Name of subsidiary Date of Paid % of equity Place of Shanghai Yin Sai Computer Technology Co., Ltd. (Yin Sai) (formerly known as Shanghai Yin Tian Xia Technology Co., Ltd.)* Incorporated on June 27, 2011 RMB 5 million 100% PRC Shanghai Yin Tian Xia Financial and Information Service Co., Ltd.* Incorporated on May 15, 2014 RMB 5 million 100% PRC Yintech Enterprise Co., Ltd. (formerly known as Win Yin Gold Investment Co., Ltd. (BVI))* Incorporated on September 29, 2014 USD 1 dollar 100% BVI Yintech Enterprise (HK) Investment Co., Ltd. (formerly known as Win Yin (HK) Gold Investment Co., Ltd.)* Incorporated on October 31, 2014 HKD 1 dollar 100% Hong Kong Shanghai Chun Xin Information Technology Co., Ltd. (formerly known as Shanghai Zu Ding Culture Communication Co., Ltd.) Incorporated on April 14, 2015 RMB 1 million 100% PRC Shanghai Yintech Investment Group Co., Ltd. (formerly known as Shanghai Yin Tian Xia Investment Management (Group) Co., Ltd.) Incorporated on April 14, 2015 USD 30 million 100% PRC Yintech Frontier Co., Ltd. Incorporated on November 5, 2015 USD 1 dollar 100% BVI Yintech Elements Co., Ltd. Incorporated on November 9, 2015 USD 1 dollar 100% BVI Shanghai Jin Dou Information Technology Co., Ltd. (“Jin Dou”) Incorporated on November 12, 2015 RMB 10 million 100% PRC Yintech Elements (HK) Co., Ltd. Incorporated on November 19, 2015 HKD 1 dollar 100% Hong Kong Name of subsidiary Date of Paid % of equity Place of Yintech Frontier (HK) Co., Ltd. Incorporated on November 19, 2015 HKD 1 dollar 100% Hong Kong Shanghai Jin Huan Industrial Co., Ltd. (“Jin Huan”) Incorporated on November 30, 2015 RMB 3.05 million 100% PRC Shanghai Jin Yi Information Technology Co., Ltd., (“Jin Yi”) Incorporated on December 4, 2015 RMB 10 million 100% PRC Shanghai Yi Shi Information Technology Co., Ltd. (‘‘Yi Shi’’) Incorporated on March 30, 2016 RMB 10 million 100% PRC Yintech Ventures Co., Ltd. Incorporated on June 1, 2016 USD 1 dollar 100% BVI Shanghai Yin He You Co., Ltd. (“Yin He You”) Acquired on June 1, 2016 RMB 5 million 100% PRC Yintech Gold Co., Ltd. Incorporated on June 16, 2016 USD 1 dollar 100% BVI Yintech Ventures (HK) Co., Ltd. Incorporated on June 21, 2016 HKD 1 dollar 100% Hong Kong Shanghai Li Xian Information Technology Co., Ltd. (‘‘Li Xian’’) Incorporated on July 26, 2016 — 100% PRC Shanghai Xie Luo Information Technology Co., Ltd. (‘‘Xie Luo’’) Incorporated on July 26, 2016 — 100% PRC Gold Master (HK) Co., Ltd.(“Gold Master HK”) Acquired on August 31, 2016 USD 3 million 100% Hong Kong Shanghai Ming Qin Information Technology Co., Ltd. (‘‘Ming Qin’’) Acquired on August 31, 2016 USD 3 million 100% PRC Shanghai Gold Master Network Financial Information Service Co., Ltd. (‘‘Gold Master’’) Acquired on August 31, 2016 RMB 84 million 100% PRC Name of subsidiary Date of Paid % of equity Place of Shanghai Gold Master Network Technology Co., Ltd. (‘‘Gold Master Network’’) Acquired on August 31, 2016 RMB 10 million 100% PRC Shanghai Xi Ben Sofware Technology Co., Ltd. (‘‘Xi Ben’’) Incorporated on September 12, 2016 — 100% PRC Yintech Innovation Co., Ltd. Incorporated on November 23, 2016 USD 1 dollar 100% BVI Yintech Financial Holdings Co., Ltd. Incorporated on December 12, 2016 USD 1 dollar 100% BVI Yintech Innovation Labs, LLC Incorporated on December 20, 2016 USD 0.5 million 100% USA Shanghai Die Xiao Information Technology Co., Ltd. (“Die Xiao”) Incorporated on December 27, 2016 RMB 1.85 million 100% PRC Shanghai Hai Fan Information Technology Co., Ltd. (“Hai Fan”) Incorporated on January 22, 2017 — 100% PRC Shanghai Hao Ken Information Technology Co., Ltd. (“Hao Ken”) Incorporated on February 23, 2017 RMB 0.2 million 100% PRC Shanghai Qian Cheng Industrial Co., Ltd. (“Qian Cheng”) Incorporated on August 7, 2017 RMB 1 million 100% PRC Shanghai Qian Lin Industrial Co., Ltd. (“Qian Lin”) Incorporated on August 8, 2017 — 100% PRC Shanghai Qian Jing Industrial Co., Ltd. (“Qian Jing”) Incorporated on August 9, 2017 RMB 1 million 100% PRC Shanghai Qian Xi Industrial Co., Ltd. (“Qian Xi”) Incorporated on August 9, 2017 RMB 0.06 million 100% PRC Shanghai Qian Dian Industrial Co., Ltd. (“Qian Dian”) Incorporated on August 10, 2017 RMB 0.06 million 100% PRC Shanghai Qian Du Industrial Co., Ltd. (“Qian Du”) Incorporated on August 10, 2017 — 100% PRC Name of subsidiary Date of Paid % of equity Place of Shanghai Qian Shi Industrial Co., Ltd. (“Qian Shi”) Incorporated on August 10, 2017 — 100% PRC Shanghai Xu Fan Industrial Co., Ltd (“Xu Fan”) Incorporated on August 15, 2017 RMB 0.01 million 100% PRC Shanghai Xu Xing Industrial Co., Ltd (“Xu Xing”) Incorporated on August 15, 2017 RMB 0.01 million 100% PRC Shanghai Xu Mu Industrial Co., Ltd (“Xu Mu”) Incorporated on August 17, 2017 RMB 1 million 100% PRC Shanghai Xu Liang Cultural Communication Co., Ltd. (“Xu Liang”) Acquired on August 31, 2017 RMB 1.83 million 100% PRC Fuqing Yun Zhong Information Technology Co., Ltd. (“Yun Zhong”) Incorporated on October 19, 2017 — 100% PRC Shanghai Miao Huan Industrial Co., Ltd. (“Miao Huan”) Incorporated on October 24, 2017 — 100% PRC Forthright International Holdings Limited Acquired on December 29, 2017 USD 1 dollar 100% BVI Forthright International Co., Ltd. Acquired on December 29, 2017 — 100% New Zealand Forthright Financial Holdings Co., Ltd Acquired on December 29, 2017 HKD 50 million 100% Hong Kong Forthright Securities Co., Ltd. Acquired on December 29, 2017 HKD 80 million 100% Hong Kong Forthright Management Services Co., Ltd. Acquired on December 29, 2017 HKD 0.01 million 100% Hong Kong Forthright Asset Management Co., Ltd. Acquired on December 29, 2017 HKD 15 million 100% Hong Kong Name of subsidiary Date of Paid % of equity Place of Forthright Finance Co., Ltd. Acquired on December 29, 2017 HKD 0.5 million 100% Hong Kong Shanghai Fan Di Information Technology Co., Ltd. (“Fan Di”) Acquired on December 29, 2017 HKD 5 million 100% PRC Name of VIE Date of Paid % of equity Place of Shanghai Bei Xun Industrial Co., Ltd. (“Bei Xun”) Acquired on January 3, 2017 RMB 10 million 100% PRC Shanghai Ran Yu Information Technology Co., Ltd. (“Ran Yu”) Acquired on January 3, 2017 RMB 20 million 100% PRC Guangdong Hong Feng Co., Ltd. (“Hong Feng”) Incorporated on October 17, 2017 RMB 2.6 million 100% PRC Name of VIE’s subsidiary Date of Paid % of equity Place of Shanghai Hua Shu Tong Jin Industrial Co., Ltd. (“Hua Shu Tong Jin”) Incorporated on May 26, 2017 RMB 0.01 million 100% PRC Guangdong Bo Zhong Securities Investment Advisory Co., Ltd. (“Bo Zhong”) Acquired on May 31, 2017 RMB 35 million 94% PRC Sina Shi Jin (Shanghai) Information Technology Co., Ltd. (“Sina Shi Jin”) (formerly known as Sina Cai Dao (Shanghai) Information Technology Co., Ltd.) Acquired on July 1, 2017 RMB 104.45 million 51% PRC Shanghai Hou Zhan Information Technology Co., Ltd. (“Hou Zhan”) Incorporated on July 20, 2017 — 51% PRC Name of VIE’s subsidiary Date of Paid % of equity Place of Shanghai Yuan Shi Investment Advisory Co., Ltd. (“Yuan Shi”) Acquired on August 31, 2017 RMB 2.3 million 100% PRC Shanghai Tian Xi Information Technology Co., Ltd. (“Tian Xi”) Acquired on August 31, 2017 RMB 10 million 100% PRC Shanghai Chun Da Asset Management Co., Ltd. (“Chun Da”) Acquired on October 1, 2017 RMB 10 million 100% PRC Note (*): These entities were acquired by Yintech through a group reorganization (the ‘‘Reorganization’’) as described below. |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of assets, liabilities, results of operations and changes in cash and cash equivalents of the VIEs and their subsidiaries | Year ended December 31, 2016 2017 2017 RMB RMB (Note2)USD Unaudited Total assets — Total liabilities — Year ended December 31, 2016 2017 2017 RMB RMB (Note2)USD Unaudited Net Revenues — Net Expenses — ) ) Year ended December 31, 2016 2017 2017 RMB RMB (Note2)USD Unaudited Cash flows from operating activities — Cash flows from investing activities — ) ) Cash flows from financing activities — Net increase in cash — |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis | At December 31, 2017 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Asset Derivative assets — — — — AFS investments - Wealth management products and trust plans — — - Fund investments measured at NAV* — — — Total — — * Investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. At December 31, 2016 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Asset Derivative assets — — AFS investments — — Total — — |
Schedule of carrying values and estimated fair values of financial assets and liabilities | Total At carrying Estimated December 31, 2017 value Level 1 Level 2 Level 3 fair value RMB RMB RMB RMB RMB Asset Cash — — Entrusted bank balances held on behalf of customers — — Deposits with clearing organizations — — Reverse repurchase agreements — — Other financial assets — — Total — Liabilities Other financial liabilities — — Total — — Total At carrying Estimated December 31, 2016 value Level 1 Level 2 Level 3 fair value RMB RMB RMB RMB RMB Asset Cash — — Deposits with clearing organizations — — Other financial assets — — Total — Liabilities Other financial liabilities — — Total — — |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Forthright Group | |
Summary of consideration paid and the amounts of estimated fair value of the assets acquired and liabilities assumed at the acquisition date | Consideration Cash Recognized amounts of identifiable assets acquired and liabilities assumed Cash Entrusted bank balances held on behalf of customers Equipment and leasehold improvements Intangible assets Accounts receivable Other assets Accounts payable ) Accrued employee benefits ) Other liabilities ) Total identifiable net assets acquired ) Goodwill Total |
Sina Shi Jin | |
Summary of consideration paid and the amounts of estimated fair value of the assets acquired and liabilities assumed at the acquisition date | Consideration Cash Recognized amounts of identifiable assets acquired and liabilities assumed Cash Equipment and leasehold improvements Deferred tax assets Short-term investments Other assets Accounts payable ) Accrued employee benefits ) Other liabilities ) Total identifiable net assets acquired Non-controlling interest ) Goodwill Total |
Other acquisitions in 2017 | |
Summary of consideration paid and the amounts of estimated fair value of the assets acquired and liabilities assumed at the acquisition date | Consideration Cash Recognized amounts of identifiable assets acquired and liabilities assumed Cash Accounts receivable Equipment and leasehold improvements Intangible assets Deferred tax assets Short-term investments Goodwill Other assets Accounts payable ) Income tax payable ) Accrued employee benefits ) Other liabilities ) Total identifiable net assets acquired Noncontrolling interest ) Goodwill Total |
Gold Master HK | |
Summary of consideration paid and the amounts of estimated fair value of the assets acquired and liabilities assumed at the acquisition date | Consideration Cash Equity instrument (200,890,940 ordinary shares of the Company) Fair value of total consideration transferred Recognized amounts of identifiable assets acquired and liabilities assumed Cash Available-for-sale investments Equipment and leasehold improvements Intangible assets Other assets Accounts payable ) Accrued employee benefits ) Deferred tax liabilities ) Other liabilities ) Total identifiable net assets acquired Goodwill Total |
Other acquisitions in 2016 | |
Summary of consideration paid and the amounts of estimated fair value of the assets acquired and liabilities assumed at the acquisition date | Consideration Cash Recognized amounts of identifiable assets acquired and liabilities assumed Cash Equipment and leasehold improvements Intangible assets Other assets Accounts payable ) Accrued employee benefits ) Other liabilities ) Total identifiable net assets acquired Noncontrolling interest ) Goodwill Total |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of short-term investments | December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited AFS investments Reverse repurchase agreements — Total |
AFS investments | |
Schedule of short-term investments | Gross Aggregate unrealized At December 31, 2017 cost basis holding losses Aggregate fair value RMB RMB RMB USD (Note2) Unaudited Available-for-sale investments ) Total ) Gross Aggregate unrealized At December 31, 2016 cost basis holding gains Aggregate fair value RMB RMB RMB USD (Note2) Unaudited Available-for-sale investments — Total — |
EQUIPMENT AND LEASEHOLD IMPRO44
EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | |
Summary of equipment and leasehold improvements | December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited Electronic equipment Office equipment Motor vehicles Leasehold improvements Total equipment and leasehold improvements Less: accumulated depreciation ) ) ) Equipment and leasehold improvements, net |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS RECEIVABLE | |
Schedule of accounts receivable | December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited Commission receivable Receivables from other brokers and clients — Total |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER ASSETS | |
Schedule of other assets | December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited Prepayment to suppliers Silver products and raw silver VAT refund receivable Awards receivable from exchanges — — Receivable from customers — — Expense advance to employees Prepayment for business acquisition — Receivables related to subsidiaries disposal — Receivables related to AFS investment disposal — Deposit and others Total |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER LIABILITIES | |
Summary of other liabilities | December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited Non-income taxes and surcharges payable Deferred revenue — Accrued offering costs Customer rebates payable — — Accrued expenses and others Total |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL | |
Schedule of goodwill | December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited Balance as of January 1 Gross goodwill Accumulated impairment losses — — — Net goodwill as of January 1 Goodwill acquired during the year Goodwill disposed during the year — ) ) Impairment loss — — — Amortization expense — — — Balance as of December 31 Gross goodwill Accumulated impairment expense — — — Accumulated amortization expense — — — Net goodwill as of December 31 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS | |
Schedule of Amortizing intangible assets | December 31, 2017 Weighted average amortization Gross carrying Accumulated Net carrying period amount amortization amount Amortizing intangible assets: Customer list 6 years ) Trademark 10 years ) Acquired software 10 years ) Subtotal ) Indefinite-lived intangible assets Operating Licenses and Trading Rights — Subtotal — Total intangible assets (RMB) ) Total intangible assets (USD) unaudited ) December 31, 2016 Weighted average amortization Gross carrying Accumulated Net carrying period amount amortization amount Amortizing intangible assets: Customer list 6 years ) Trademark 10 years ) Acquired software 10 years ) Subtotal ) Indefinite-lived intangible assets License of Shanghai Exchange — Subtotal — Total intangible assets (RMB) ) Total intangible assets (USD) unaudited ) |
Schedule of Indefinite-lived intangible assets | December 31, 2017 Weighted average amortization Gross carrying Accumulated Net carrying period amount amortization amount Amortizing intangible assets: Customer list 6 years ) Trademark 10 years ) Acquired software 10 years ) Subtotal ) Indefinite-lived intangible assets Operating Licenses and Trading Rights — Subtotal — Total intangible assets (RMB) ) Total intangible assets (USD) unaudited ) December 31, 2016 Weighted average amortization Gross carrying Accumulated Net carrying period amount amortization amount Amortizing intangible assets: Customer list 6 years ) Trademark 10 years ) Acquired software 10 years ) Subtotal ) Indefinite-lived intangible assets License of Shanghai Exchange — Subtotal — Total intangible assets (RMB) ) Total intangible assets (USD) unaudited ) |
RETAINED EARNINGS (Tables)
RETAINED EARNINGS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RETAINED EARNINGS | |
Schedule of retained earnings | December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited PRC statutory reserve Unreserved retained earnings Total retained earnings |
ACCUMULATED OTHER COMPREHENSI51
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | |
Schedule of accumulated other comprehensive income | Unrealized gain on available-for-sale Foreign Before tax Income Tax Net-of-tax Total RMB RMB RMB RMB RMB Balance at January 1, 2015 — — — — — Other comprehensive income before reclassification ) Amounts reclassified from accumulated other comprehensive income — ) ) ) Balance at December 31, 2015 — — — Other comprehensive income before reclassification ) Amounts reclassified from accumulated other comprehensive income — ) ) ) Balance at December 31, 2016 — — — Other comprehensive income before reclassification ) ) Amounts reclassified from accumulated other comprehensive income — ) ) ) Balance at December 31, 2017 ) ) Balance at December 31, 2017 in USD (Note2) (unaudited) ) ) |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
NON-CONTROLLING INTERESTS | |
Schedule of non-controlling interest | December 31, 2016 2017 2017 RMB RMB USD Unaudited Sina Shi Jin — Bo Zhong — Da Xiang Ping Tai ) — — Total ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of future minimum lease payments under non-cancellable operating leases agreements | RMB Year ending December 31 2018 2019 2020 2021 2022 2023 and thereafter Total |
COMMISSIONS AND FEES (Tables)
COMMISSIONS AND FEES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
COMMISSIONS AND FEES | |
Schedule of commissions and fees | Year ended December 31, 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Spread fees Trading commissions, net Overnight fees, net Securities service fee — — Total |
TRADING GAINS _ (LOSSES) (Table
TRADING GAINS / (LOSSES) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TRADING GAINS / (LOSSES) | |
Schedule of trading gains / (losses) | Year ended December 31, 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Spot commodity contracts ) ) Risk and return transfer arrangement ) ) Commodity futures contracts ) Trading of physical commodities ) ) Short-term investments Total |
OTHER REVENUES (Tables)
OTHER REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER REVENUES | |
Schedule of other revenues | Year ended December 31, 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Gain on disposal of subsidiaries — — VAT refund — Sales of silver products Sales of application services Government grants and others Awards from the Exchanges — — Total |
ADVERTISING AND PROMOTION (Tabl
ADVERTISING AND PROMOTION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ADVERTISING AND PROMOTION | |
Schedule of advertising and promotion expenses | Year ended December 31, 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Advertising expenses Sales agent expenses — Total |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES | |
Schedule of components of income tax expense | Year ended December 31, 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Current tax expense Deferred tax expense/(benefit) ) ) Total income tax expense |
Schedule of reconciliation between the actual income tax expense and income tax computed by applying the corporate income tax rate | Year ended December 31, Note 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Income taxes at PRC statutory income tax rate of 25% Differential tax rates for non-PRC entities (i) Preferential income tax rate inside the PRC (ii) ) ) ) ) Change in the beginning of the year balance of the valuation allowance due to a change in judgement about the realizability of deferred tax assets — — Current year change of valuation allowance on deferred tax assets — — Distribution tax on PRC earnings — Nondeductible share-based compensation expense Tax savings from additional deductions on certain research and development expenses (iii) — ) ) ) Non-taxable gain on disposal of subsidiaries — — ) ) Other, net ) ) ) Reported income taxes Effective tax rate % % % % (i) The pre-tax losses from non-PRC entities consist primarily of administration expenses, including share-based compensation. (ii) Yin Sai was granted the ‘‘qualified software enterprise’’ status in 2013 and is eligible for an income tax exemption for the years ended December 31, 2013 (the year in which it starts making profit) and 2014, and is entitled to a 50 percent reduction of income tax rate for the years ended December 31, 2015 to 2017. For the period from January 2018 to August 2018, Yin Sai is entitled to a preferential tax rate of 15% with the qualification as an eligible “high-tech enterprise”. The Group is in the process of renewing this qualification for the period thereafter. Yin He You was granted the “qualified software enterprise” status in 2016 and is eligible for an income tax exemption for the years ended December 31, 2015 (the year in which it starts making profit) and 2016, and is entitled to a 50 percent reduction of income tax rate for the years ended December 31, 2017 to 2019. Gold Master Network was granted the “qualified software enterprise” status in 2016 and is eligible for an income tax exemption for the years ended December 31, 2016 (the year in which it starts making profit) and 2017, and is entitled to a 50 percent reduction of income tax rate for the years ended 31 December 2018 to 2020. Per share impact of such tax holiday is RMB 0.05, RMB 0.13 and RMB 0.09 for the years ended December 31, 2015, 2016 and 2017, respectively. (iii) This amount represents tax incentives relating to the research and development expenses of certain operating subsidiaries in the PRC, which enables the claim of an additional tax deduction amounting to 50% of the qualified research and development expenses incurred. |
Schedule of significant components of deferred income tax assets/ liabilities | Year ended December 31, 2016 2017 2017 RMB RMB (Note2) USD Unaudited Net operating loss carryforwards Accrued social insurance Advertising expense carryforwards Deferred revenue — Impairment loss — Unrealized loss on AFS investments — Total deferred tax assets Less: Valuation Allowance — ) ) Total net deferred tax assets Undistributed earnings of PRC entities ) ) ) Intangible assets ) ) ) Unrealized gain on AFS investments — ) ) Equipment and leasehold improvements ) ) ) Total deferred tax liabilities ) ) ) Deferred tax assets, net Deferred tax liabilities, net ) ) ) |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | RMB Balance at December 31, 2015 and 2016 Decrease due to disposal of the subsidiary ) Balance at December 31, 2017 — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE | |
Schedule of the computation of basic and diluted earnings per share | Year ended December 31, 2015 2016 2017 2017 RMB RMB RMB (Note2) USD Unaudited Net Income attributable to Yintech Basic weighted average number of ordinary shares outstanding Effect of dilutive share options and RSUs Dilutive weighted average number of ordinary shares Basic earnings per share Diluted earnings per share |
EQUITY SETTLED SHARE-BASED TR60
EQUITY SETTLED SHARE-BASED TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EQUITY SETTLED SHARE-BASED TRANSACTIONS | |
Schedule of stock option activity | Weighted Weighted average average remaining Aggregate Number exercise contractual intrinsic of options price term value USD RMB Balance at January 1, 2015 Granted — — — — Exercised — — — — Forfeited ) ) Expired — — — — Balance at December 31, 2015 Exercisable at December 31, 2015 — — — — Balance at January 1, 2016 Granted Exercised ) — ) Forfeited ) ) Expired — — — — Balance at December 31, 2016 Exercisable at December 31, 2016 Weighted Weighted average average remaining Aggregate Number exercise contractual intrinsic of options price term value USD RMB Balance at January 1, 2017 0.370 Granted 0.500 ) Exercised ) 0.175 — ) Forfeited ) 0.213 ) Expired — — — — Balance at December 31, 2017 0.361 Exercisable at December 31, 2017 0.292 |
Schedule of fair value of share options and assumptions | 2015 2016 2017 RMB RMB RMB Expected volatility (expressed as weighted average volatility) — % % Option life — 5.97-8.00 5.64-9.32 Expected dividends — 0-1.8 % 0-1.8 % Risk-free interest rate — 1.43%-1.94 % 1.43%-1.94 % |
Schedule of restricted share units activity | Weighted average Aggregate Number remaining intrinsic of units contractual value Balance at January 1, 2015 — — — Granted Vested — — — Forfeited ) ) Balance at December 31, 2015 Balance at January 1, 2016 Granted Vested ) — ) Forfeited ) ) Balance at December 31, 2016 Balance at January 1, 2017 Granted Vested ) — ) Forfeited ) ) Balance at December 31, 2017 |
DESCRIPTION OF BUSINESS AND O61
DESCRIPTION OF BUSINESS AND ORGANIZATION (Details) ¥ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2017HKD ($)subsidiaryitem | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2015CNY (¥) | Nov. 30, 2015USD ($) | Nov. 30, 2015CNY (¥) | Nov. 18, 2015 | Nov. 04, 2015 | |
Number of exchanges | item | 3 | |||||||
Number of subsidiaries, comprehensive members of Tianjing or Guangdong Exchanges | subsidiary | 6 | |||||||
Percentage of equity interest held by the Company | 100.00% | |||||||
Founding shareholder one | ||||||||
Percentage of equity interest held by the Company | 40.00% | |||||||
Founding shareholder two | ||||||||
Percentage of equity interest held by the Company | 30.00% | |||||||
Founding shareholder three | ||||||||
Percentage of equity interest held by the Company | 30.00% | |||||||
Win Yin | Yintech Enterprise Co Ltd | ||||||||
Consideration of acquisition | $ 1 | ¥ 6 | ||||||
Bei Xun | ||||||||
Paid up capital | ¥ 10,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | |||||||
Ran Yu | ||||||||
Paid up capital | 20,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | |||||||
Hong Feng | ||||||||
Paid up capital | 2,600 | |||||||
Percentage of equity interest held by the Company | 100.00% | |||||||
Sina Shi Jin | ||||||||
Paid up capital | 104,450 | |||||||
Percentage of equity interest held by the Company | 51.00% | |||||||
Hou Zhan | ||||||||
Percentage of equity interest held by the Company | 51.00% | |||||||
Hua Shu Tong Jin | ||||||||
Paid up capital | 10 | |||||||
Percentage of equity interest held by the Company | 100.00% | |||||||
Bo Zhong | ||||||||
Paid up capital | 35,000 | |||||||
Percentage of equity interest held by the Company | 94.00% | |||||||
Yuan Shi | ||||||||
Paid up capital | 2,300 | |||||||
Percentage of equity interest held by the Company | 100.00% | |||||||
Tian Xi | ||||||||
Paid up capital | 10,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | |||||||
Chun Da | ||||||||
Paid up capital | 10,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | |||||||
Shanghai Yin Sai Computer Technology Co., Ltd. (formerly known as Shanghai Yin Tian Xia Technology Co., Ltd.) | ||||||||
Paid up capital | ¥ 5,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Shanghai Yin Tian Xia Financial and Information Service Co., Ltd. | ||||||||
Paid up capital | ¥ 5,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yintech Enterprise Co., Ltd. (formerly known as Win Yin Gold Investment Co., Ltd. (BVI)) | ||||||||
Paid up capital | $ | $ 1 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yintech Enterprise (HK) Investment Co., Ltd. (formerly known as Win Yin (HK) Gold Investment Co., Ltd.) | ||||||||
Paid up capital | $ | $ 1 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Shanghai Chun Xin Information Technology Co., Ltd. (formerly known as Shanghai Zu Ding Culture Communication Co., Ltd.) | ||||||||
Paid up capital | ¥ 1,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yintech Frontier Co., Ltd. | ||||||||
Paid up capital | $ | $ 1 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yintech Elements Co., Ltd. | ||||||||
Paid up capital | $ | $ 1 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Jin Dou | ||||||||
Paid up capital | ¥ 10,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yintech Elements (HK) Co., Ltd. | ||||||||
Paid up capital | $ | $ 1 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yintech Frontier (HK) Co., Ltd. | ||||||||
Paid up capital | $ | $ 1 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Jin Huan | ||||||||
Paid up capital | ¥ 3,050 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Jin Yi | ||||||||
Paid up capital | ¥ 10,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yi Shi | ||||||||
Paid up capital | ¥ 10,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yintech Ventures Co., Ltd. | ||||||||
Paid up capital | $ | $ 1 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yin He You | ||||||||
Paid up capital | ¥ 5,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yintech Gold Co., Ltd. | ||||||||
Paid up capital | $ | $ 1 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yintech Ventures (HK) Co., Ltd. | ||||||||
Paid up capital | $ | $ 1 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Li Xian | ||||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Xie Luo | ||||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Gold Master HK | ||||||||
Paid up capital | $ | $ 3,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Ming Qin | ||||||||
Paid up capital | $ | $ 3,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Gold Master | ||||||||
Paid up capital | ¥ 84,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Gold Master Network | ||||||||
Paid up capital | ¥ 10,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Xi Ben | ||||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yintech Innovation Co., Ltd. | ||||||||
Paid up capital | $ | $ 1 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yintech Innovation Labs, LLC | ||||||||
Paid up capital | ¥ 500 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Die Xiao | ||||||||
Paid up capital | ¥ 1,850 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Hai Fan | ||||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Hao Ken | ||||||||
Paid up capital | ¥ 200 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Qian Cheng | ||||||||
Paid up capital | ¥ 1,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Qian Lin | ||||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Qian Jing | ||||||||
Paid up capital | ¥ 1,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Qian Xi | ||||||||
Paid up capital | ¥ 60 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Qian Dian | ||||||||
Paid up capital | ¥ 60 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Qian Du | ||||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Qian Shi | ||||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Xu Fan | ||||||||
Paid up capital | ¥ 10 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Xu Xing | ||||||||
Paid up capital | ¥ 10 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Xu Mu | ||||||||
Paid up capital | ¥ 1,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Xu Liang | ||||||||
Paid up capital | ¥ 1,830 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yun Zhong | ||||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Miao Huan | ||||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Forthright International Holdings Limited | ||||||||
Paid up capital | $ | $ 1 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Forthright International Co., Ltd. | ||||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Forthright Financial Holdings Co., Ltd | ||||||||
Paid up capital | $ | $ 50,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Forthright Securities Co., Ltd. | ||||||||
Paid up capital | $ | $ 80,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Forthright Management Services Co., Ltd. | ||||||||
Paid up capital | $ | $ 10 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Forthright Asset Management Co., Ltd. | ||||||||
Paid up capital | $ | $ 15,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Forthright Finance Co., Ltd. | ||||||||
Paid up capital | $ | $ 500 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Yintech Financial Holdings Co., Ltd. | ||||||||
Paid up capital | $ | $ 1 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Shanghai Yintech Investment Group Co., Ltd. (formerly known as Shanghai Yin Tian Xia | ||||||||
Paid up capital | $ | $ 30,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Fan Di | ||||||||
Paid up capital | $ | $ 5,000 | |||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | 100.00% | |||||
Qian Zhong Su | Long Jin | Rong Jin Hui Yin, Jin Xiang Yin Rui and Yin Tian Xia Technology, and their subsidiaries | ||||||||
Consideration of acquisition | ¥ 107,260 | |||||||
Transferred entities | Win Yin | ||||||||
Percentage of equity interest held by the Company | 100.00% | |||||||
Win Yin | Chen Wenbin | ||||||||
Percentage of equity interest held by the Company | 40.00% | |||||||
Win Yin | Yan Ming | ||||||||
Percentage of equity interest held by the Company | 30.00% | |||||||
Win Yin | Chen Ningfeng | ||||||||
Percentage of equity interest held by the Company | 30.00% |
SUMMARY OF SIGNIFICANT ACCOUN62
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Consolidated VIE and VIE's subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
Term of the loan | 10 years |
Percentage of net profit | 100.00% |
Term of Exclusive Services Agreement | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN63
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($)segmentitem¥ / $ | Dec. 31, 2017CNY (¥)segment | Dec. 31, 2016CNY (¥)item | Dec. 31, 2015CNY (¥) | Dec. 31, 2017CNY (¥)item¥ / $ | |
Statements of comprehensive income (loss) | |||||
Net Revenues | $ 376,396 | ¥ 2,448,946 | ¥ 2,719,541 | ¥ 1,254,874 | |
Net Expenses | (278,561) | (1,812,404) | (1,668,409) | (760,655) | |
Changes in cash and cash equivalents | |||||
Cash flows from operating activities | 94,288 | 668,472 | 1,030,836 | 430,814 | |
Cash flows from investing activities | (167,769) | (1,146,558) | (266,466) | 179,864 | |
Cash flows from financing activities | (57,280) | (372,677) | 414,410 | (331,751) | |
Net increase/(decrease) in cash | (130,761) | ¥ (850,763) | 1,178,780 | ¥ 278,927 | |
Income tax payable | 11,290 | 145,049 | ¥ 73,458 | ||
Deferred revenues | $ 955 | ¥ 6,214 | |||
Exchange rate | ¥ / $ | 6.5063 | 6.5063 | |||
Number of operating segments | segment | 1 | 1 | |||
Number of reportable segments | segment | 1 | 1 | |||
Consolidated VIE and VIE's subsidiaries | |||||
Consolidated balance sheets | |||||
Total assets | $ 39,725 | ¥ 258,466 | |||
Total liabilities | 4,370 | 28,431 | |||
Statements of comprehensive income (loss) | |||||
Net Revenues | 7,249 | ¥ 47,161 | |||
Net Expenses | (11,545) | (75,115) | |||
Changes in cash and cash equivalents | |||||
Cash flows from operating activities | 15,556 | 101,213 | |||
Cash flows from investing activities | (18,324) | (119,220) | |||
Cash flows from financing activities | 4,767 | 31,015 | |||
Net increase/(decrease) in cash | $ 1,999 | ¥ 13,008 | |||
Cash and short-term investments | 57,390 | ||||
Accounts receivable, other assets, intangible assets, equipment and leasehold improvement, deferred tax assets and goodwill | 201,080 | ||||
Accounts payable, other liabilities and accrued employee benefits | 16,700 | ||||
Income tax payable | ¥ 0 | 5,522 | |||
Deferred revenues | ¥ 6,210 | ||||
Minimum | |||||
Changes in cash and cash equivalents | |||||
Useful life | 3 years | 3 years | |||
Maximum | |||||
Changes in cash and cash equivalents | |||||
Useful life | 5 years | 5 years | |||
Commodity future contracts | |||||
Changes in cash and cash equivalents | |||||
Outstanding commodity futures contract | item | 0 | 0 | 0 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Measurements On A Recurring Basis (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Asset | ||
Derivative assets | ¥ 45,569 | |
Recurring | ||
Asset | ||
Derivative assets | 45,569 | |
AFS investments | ||
Wealth management products and trust plans | ¥ 863,766 | |
Fund investments measured at NAV | 185,279 | |
Available-for-sale investments | 218,940 | |
Total | 1,049,045 | 264,509 |
Recurring | Level 2 | ||
Asset | ||
Derivative assets | 45,569 | |
AFS investments | ||
Wealth management products and trust plans | 863,766 | |
Available-for-sale investments | 218,940 | |
Total | ¥ 858,536 | ¥ 264,509 |
FAIR VALUE MEASUREMENTS - Trans
FAIR VALUE MEASUREMENTS - Transfers (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
FAIR VALUE MEASUREMENTS | ||
Assets, Level 1 to Level 2 transfers | ¥ 0 | ¥ 0 |
Assets, Level 2 to Level 1 transfers | 0 | 0 |
Liabilities, Level 1 to Level 2 transfers | 0 | 0 |
Liabilities, Level 2 to Level 1 transfers | 0 | 0 |
Assets, Level 3 transfer into | 0 | 0 |
Assets, Level 3 transfer out | 0 | 0 |
Liabilities, Level 3 transfer into | 0 | 0 |
Liabilities, Level 3 transfer out | ¥ 0 | ¥ 0 |
FAIR VALUE MEASUREMENTS - Estim
FAIR VALUE MEASUREMENTS - Estimated Fair Value (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Asset | |||
Entrusted bank balances held on behalf of customers | $ 23,124 | ¥ 150,452 | |
Total carrying value | |||
Asset | |||
Cash | 690,478 | ¥ 1,541,241 | |
Entrusted bank balances held on behalf of customers | 150,452 | ||
Deposits with clearing organizations | 1,152 | 265,807 | |
Reverse repurchase agreements | 162,961 | ||
Other financial assets | 459,689 | 196,164 | |
Total | 1,464,732 | 2,003,212 | |
Liabilities | |||
Other financial liabilities | 197,516 | 40,868 | |
Total | 197,516 | 40,868 | |
Estimate fair value | |||
Asset | |||
Cash | 690,478 | 1,541,241 | |
Entrusted bank balances held on behalf of customers | 150,452 | ||
Deposits with clearing organizations | 1,152 | 265,807 | |
Reverse repurchase agreements | 162,961 | ||
Other financial assets | 459,689 | 196,164 | |
Total | 1,464,732 | 2,003,212 | |
Liabilities | |||
Other financial liabilities | 197,516 | 40,868 | |
Total | 197,516 | 40,868 | |
Estimate fair value | Level 1 | |||
Asset | |||
Cash | 690,478 | 1,541,241 | |
Entrusted bank balances held on behalf of customers | 150,452 | ||
Deposits with clearing organizations | 1,152 | 265,807 | |
Total | 842,082 | 1,807,048 | |
Estimate fair value | Level 2 | |||
Asset | |||
Reverse repurchase agreements | 162,961 | ||
Other financial assets | 459,689 | 196,164 | |
Total | 622,650 | 196,164 | |
Liabilities | |||
Other financial liabilities | 197,516 | 40,868 | |
Total | ¥ 197,516 | ¥ 40,868 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) ¥ in Thousands, $ in Thousands | Dec. 29, 2017CNY (¥) | Jul. 31, 2017CNY (¥) | Aug. 31, 2016CNY (¥)shares | Dec. 31, 2015CNY (¥) | Nov. 17, 2015CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) |
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Goodwill | ¥ 102 | $ 168,602 | ¥ 102 | ¥ 1,096,972 | $ 164,395 | ¥ 1,069,603 | ||||||
Revenue | 376,396 | ¥ 2,448,946 | ¥ 2,719,541 | 1,254,874 | ||||||||
Net income | ¥ 105,193 | ¥ 297,822 | $ 71,775 | ¥ 466,986 | ¥ 925,702 | ¥ 403,015 | ||||||
Customer list | ||||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Weighted average useful life | 6 years | 6 years | 6 years | |||||||||
Trademark | ||||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Weighted average useful life | 10 years | 10 years | 10 years | |||||||||
Acquired software | ||||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Weighted average useful life | 10 years | 10 years | 10 years | |||||||||
Forthright Group | ||||||||||||
ACQUISITION | ||||||||||||
Ownership percentage acquired | 100.00% | |||||||||||
Cash consideration | ¥ 12,806 | |||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Cash | 58,380 | |||||||||||
Entrusted bank balances held on behalf of customers | 150,452 | |||||||||||
Equipment and leasehold improvements | 1,488 | |||||||||||
Intangible assets | 416 | |||||||||||
Accounts receivable | 9,600 | |||||||||||
Other assets | 4,578 | |||||||||||
Accounts payable | (149,872) | |||||||||||
Accrued employee benefits | (2,649) | |||||||||||
Other liabilities | (76,147) | |||||||||||
Total identifiable net assets acquired | (3,754) | |||||||||||
Goodwill | 16,560 | |||||||||||
Total | ¥ 12,806 | |||||||||||
Sina Shi Jin | ||||||||||||
ACQUISITION | ||||||||||||
Ownership percentage acquired | 51.00% | |||||||||||
Cash consideration | ¥ 18,488 | |||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Cash | 8,908 | |||||||||||
Equipment and leasehold improvements | 96 | |||||||||||
Deferred tax assets | 2,446 | |||||||||||
Short term investments | 20,000 | |||||||||||
Other assets | 7 | |||||||||||
Accounts payable | (2,621) | |||||||||||
Accrued employee benefits | (379) | |||||||||||
Other liabilities | (34) | |||||||||||
Total identifiable net assets acquired | 28,423 | |||||||||||
Noncontrolling interest | (17,762) | |||||||||||
Goodwill | 7,827 | |||||||||||
Total | ¥ 18,488 | |||||||||||
Other acquisitions in 2017 | ||||||||||||
ACQUISITION | ||||||||||||
Cash consideration | ¥ 97,836 | |||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Cash | 18,508 | |||||||||||
Equipment and leasehold improvements | 4,943 | |||||||||||
Intangible assets | 68,745 | |||||||||||
Accounts receivable | 104,096 | |||||||||||
Deferred tax assets | 10,736 | |||||||||||
Short term investments | 5,000 | |||||||||||
Goodwill | 766 | |||||||||||
Other assets | 3,398 | |||||||||||
Accounts payable | (108,104) | |||||||||||
Income tax payable | (4,721) | |||||||||||
Accrued employee benefits | (735) | |||||||||||
Other liabilities | (5,947) | |||||||||||
Total identifiable net assets acquired | 96,685 | |||||||||||
Noncontrolling interest | (4,945) | |||||||||||
Goodwill | 6,096 | |||||||||||
Total | ¥ 97,836 | |||||||||||
Gold Master HK | ||||||||||||
ACQUISITION | ||||||||||||
Ownership percentage acquired | 100.00% | |||||||||||
Ordinary shares issued | shares | 200,890,940 | |||||||||||
Cash consideration | ¥ 281,619 | |||||||||||
Equity instrument (200,890,940 ordinary shares of the Company) | 1,146,252 | |||||||||||
Fair value of total consideration transferred | 1,427,871 | |||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Cash | 181,538 | |||||||||||
Equipment and leasehold improvements | 6,236 | |||||||||||
Intangible assets | 429,806 | |||||||||||
Available-for-sale investments | 9,000 | |||||||||||
Other assets | 95,568 | |||||||||||
Accounts payable | (12,580) | |||||||||||
Accrued employee benefits | (67,579) | |||||||||||
Deferred tax liabilities | (103,273) | |||||||||||
Other liabilities | (176,568) | |||||||||||
Total identifiable net assets acquired | 362,148 | |||||||||||
Goodwill | 1,065,723 | |||||||||||
Total | 1,427,871 | |||||||||||
Gold Master HK | License of Shanghai Exchange | ||||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Intangible assets | 37,000 | |||||||||||
Gold Master HK | Customer list | ||||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Intangible assets | ¥ 239,310 | |||||||||||
Weighted average useful life | 6 years | |||||||||||
Gold Master HK | Trademark | ||||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Intangible assets | ¥ 150,640 | |||||||||||
Weighted average useful life | 10 years | |||||||||||
Gold Master HK | Acquired software | ||||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Intangible assets | ¥ 2,860 | |||||||||||
Weighted average useful life | 10 years | |||||||||||
Other acquisitions in 2016 | ||||||||||||
ACQUISITION | ||||||||||||
Cash consideration | ¥ 48,058 | |||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
Cash | 38,726 | |||||||||||
Equipment and leasehold improvements | 3,766 | |||||||||||
Intangible assets | 89 | |||||||||||
Other assets | 75,295 | |||||||||||
Accounts payable | (611) | |||||||||||
Accrued employee benefits | (1,935) | |||||||||||
Other liabilities | (68,050) | |||||||||||
Total identifiable net assets acquired | 47,280 | |||||||||||
Noncontrolling interest | (3,000) | |||||||||||
Goodwill | 3,778 | |||||||||||
Total | ¥ 48,058 |
DECONSOLIDATION (Details)
DECONSOLIDATION (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017subsidiary | Nov. 30, 2017CNY (¥)subsidiary | Aug. 31, 2017USD ($)subsidiary | Aug. 31, 2017CNY (¥)subsidiary | Dec. 31, 2017USD ($)subsidiary | Dec. 31, 2017CNY (¥)subsidiary | Dec. 31, 2016CNY (¥) | Nov. 04, 2015 |
Number of subsidiaries disposed | subsidiary | 4 | 4 | 4 | 4 | 8 | 8 | ||
Percentage of equity interest held by the Company | 100.00% | |||||||
Cash received from disposal of subsidiaries | $ 14,144 | ¥ 92,024 | ¥ 541 | |||||
Gain from disposal of subsidiaries | ¥ 23,780 | $ 13,405 | 87,217 | ¥ 677 | ||||
Sheng Ding | ||||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | ||||||
Cash received from disposal of subsidiaries | $ | $ 8,000 | |||||||
Da Xiang Shun Yi | ||||||||
Percentage of equity interest held by the Company | 100.00% | 100.00% | ||||||
Tian Jin Da Xiang | ||||||||
Percentage of equity interest held by the Company | 70.00% | 70.00% | ||||||
Da Xiang Ping Tai | ||||||||
Percentage of equity interest held by the Company | 70.00% | 70.00% | ||||||
Rong Jin Hui Yin | ||||||||
Consideration for disposal of subsidiaries | ¥ 189,000 | |||||||
Jin Xiang Yin Rui | ||||||||
Consideration for disposal of subsidiaries | ¥ 90,000 | |||||||
Yin Ru Yi | ||||||||
Consideration for disposal of subsidiaries | ¥ 63,440 |
CASH (Details)
CASH (Details) - item | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CASH | ||
Cash balances with number of PRC individual financial institutions | 5 | 4 |
Total cash balances | Bank deposits concentration risk | ||
CASH | ||
Percentage of total cash balances accounted in bank deposits | 99.00% | 74.00% |
ENTRUSTED BANK BALANCE HELD O70
ENTRUSTED BANK BALANCE HELD ON BEHALF OF CUSTOMERS (Details) | Dec. 31, 2017item |
ENTRUSTED BANK BALANCE HELD ON BEHALF OF CUSTOMERS | |
Number of large financial institutions in which entrusted bank accounts are held | 3 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) |
AVAILABLE-FOR-SALE INVESTMENTS | ||||
Short-term investments | $ 186,282 | ¥ 1,212,006 | ¥ 218,940 | |
AFS investments | ||||
AVAILABLE-FOR-SALE INVESTMENTS | ||||
Aggregate cost basis | 1,061,354 | 218,940 | ||
Gross unrealized holding losses | (12,309) | |||
Aggregate fair value | 161,235 | 1,049,045 | $ 31,534 | 218,940 |
Short-term investments | 161,235 | 1,049,045 | $ 31,534 | ¥ 218,940 |
Reverse repurchase agreements | ||||
AVAILABLE-FOR-SALE INVESTMENTS | ||||
Short-term investments | $ 25,047 | ¥ 162,961 |
EQUIPMENT AND LEASEHOLD IMPRO72
EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | |||
Total equipment and leasehold improvements | $ 13,405 | ¥ 87,218 | ¥ 77,874 |
Less: accumulated depreciation | (7,378) | (48,004) | (40,280) |
Equipment and leasehold improvements, net | 6,027 | 39,214 | 37,594 |
Electronic equipment | |||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | |||
Total equipment and leasehold improvements | 6,106 | 39,726 | 43,825 |
Office equipment | |||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | |||
Total equipment and leasehold improvements | 610 | 3,967 | 5,219 |
Motor vehicles | |||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | |||
Total equipment and leasehold improvements | 154 | 1,000 | 7,639 |
Leasehold improvements | |||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | |||
Total equipment and leasehold improvements | $ 6,535 | ¥ 42,525 | ¥ 21,191 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
ACCOUNTS RECEIVABLE | |||
Commission receivable | $ 25,227 | ¥ 164,137 | ¥ 109,497 |
Receivables from other brokers and clients | 1,079 | 7,019 | |
Total | $ 26,306 | ¥ 171,156 | ¥ 109,497 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017USD ($)subsidiary | Nov. 30, 2017subsidiary | Aug. 31, 2017subsidiary | Dec. 31, 2017USD ($)subsidiary | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
OTHER ASSETS | ||||||
Prepayment to suppliers | $ 2,053 | $ 2,053 | ¥ 13,359 | ¥ 21,079 | ||
Silver products and raw silver | 5 | 5 | 32 | 3,859 | ||
VAT refund receivable | 1,183 | 1,183 | 7,694 | 43,217 | ||
Awards receivable from exchanges | 0 | 30,825 | ||||
Receivable from customers | 1,221 | |||||
Expense advance to employees | 48 | 48 | 315 | 1,399 | ||
Prepayment for business acquisition | 10,375 | 10,375 | 67,500 | |||
Receivables related to subsidiaries disposal | 15,216 | 15,216 | 99,000 | |||
Receivables related to AFS investment disposal | 8,453 | 8,453 | 55,000 | |||
Deposit and others | 10,510 | 10,510 | 68,381 | 53,222 | ||
Total | $ 47,843 | $ 47,843 | ¥ 311,281 | ¥ 154,822 | ||
Number of subsidiaries disposed | subsidiary | 4 | 4 | 4 | 8 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
OTHER LIABILITIES | |||
Non-income taxes and surcharges payable | $ 5,463 | ¥ 35,544 | ¥ 65,406 |
Deferred revenues | 955 | 6,214 | |
Accrued offering costs | 129 | 842 | 842 |
Customer rebates payable | 0 | 25,594 | |
Accrued expenses and others | 455 | 2,953 | 11,665 |
Total | $ 7,002 | ¥ 45,553 | ¥ 103,507 |
GOODWILL (Details)
GOODWILL (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
GOODWILL | |||
Gross goodwill at the beginning of the period | $ 164,395 | ¥ 1,069,603 | ¥ 102 |
Net goodwill at the beginning of the period | 164,395 | 1,069,603 | 102 |
Goodwill acquired during the year | 4,803 | 31,249 | 1,069,501 |
Goodwill disposed during the year | (596) | (3,880) | |
Gross goodwill at end of the period | 168,602 | 1,096,972 | 1,069,603 |
Net goodwill at end of the period | $ 168,602 | ¥ 1,096,972 | ¥ 1,069,603 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | |
Amortizing intangible assets: | |||||||
Gross carrying amount | ¥ 404,378 | ¥ 400,444 | |||||
Accumulated amortization | $ (11,766) | (76,555) | $ (2,907) | (20,187) | |||
Net carrying amount | 328,239 | 380,257 | |||||
Indefinite-lived intangible assets | |||||||
Indefinite-lived intangible assets | 106,160 | 37,000 | |||||
Total intangible assets | |||||||
Total intangible assets, gross | 78,468 | 510,538 | 63,005 | 437,444 | |||
Total intangible assets, net | 66,702 | 433,983 | $ 60,098 | 417,257 | |||
Amortization expense | $ 8,691 | ¥ 56,547 | ¥ 19,081 | ||||
Impairment of other intangible assets | ¥ 0 | ¥ 0 | ¥ 0 | ||||
Future amortization of lease intangibles | |||||||
2,018 | 56,400 | ||||||
2,019 | 56,380 | ||||||
2,020 | 56,380 | ||||||
2,021 | 56,380 | ||||||
2,022 | 43,090 | ||||||
Minimum | |||||||
Intangible assets | |||||||
Weighted average amortization period | 6 years | 6 years | |||||
Maximum | |||||||
Intangible assets | |||||||
Weighted average amortization period | 10 years | 10 years | |||||
Customer list | |||||||
Intangible assets | |||||||
Weighted average amortization period | 6 years | 6 years | 6 years | ||||
Amortizing intangible assets: | |||||||
Gross carrying amount | 239,309 | 239,309 | |||||
Accumulated amortization | (53,180) | (13,295) | |||||
Net carrying amount | 186,129 | 226,014 | |||||
Trademark | |||||||
Intangible assets | |||||||
Weighted average amortization period | 10 years | 10 years | 10 years | ||||
Amortizing intangible assets: | |||||||
Gross carrying amount | 150,637 | 150,637 | |||||
Accumulated amortization | (20,085) | (5,021) | |||||
Net carrying amount | 130,552 | 145,616 | |||||
Acquired software | |||||||
Intangible assets | |||||||
Weighted average amortization period | 10 years | 10 years | 10 years | ||||
Amortizing intangible assets: | |||||||
Gross carrying amount | 14,432 | 10,498 | |||||
Accumulated amortization | (3,290) | (1,871) | |||||
Net carrying amount | 11,558 | 8,627 | |||||
License of Shanghai Exchange | |||||||
Indefinite-lived intangible assets | |||||||
Indefinite-lived intangible assets | ¥ 37,000 | ||||||
Operating Licenses and Trading Rights | |||||||
Indefinite-lived intangible assets | |||||||
Indefinite-lived intangible assets | ¥ 106,160 |
ORDINARY SHARES AND ADDITIONA78
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Aug. 31, 2016CNY (¥)shares | May 02, 2016USD ($)$ / sharesshares | May 02, 2016CNY (¥)shares | Dec. 14, 2015USD ($) | Dec. 14, 2015CNY (¥) | Nov. 18, 2015shares | Dec. 31, 2015CNY (¥) | Nov. 30, 2015CNY (¥) | Nov. 17, 2015CNY (¥)shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2017USD ($)Vote$ / sharesshares | Dec. 31, 2017CNY (¥)Voteshares | Dec. 31, 2016$ / shares | Dec. 31, 2016CNY (¥)shares | Dec. 14, 2015CNY (¥) | Nov. 04, 2015USD ($)$ / sharesshares |
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Number of votes per share | Vote | 1 | 1 | |||||||||||||||
Ordinary share capital value authorized | $ | $ 30 | ||||||||||||||||
Ordinary share, shares authorized | shares | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | |||||||||||||
Ordinary share, par value (in USD per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||||||||||||
Ordinary share, shares issued | shares | 1,425,282,175 | 1,425,282,175 | 1,377,708,575 | 1,000,000,000 | |||||||||||||
Ordinary share, value issued | $ 14 | ¥ 93 | ¥ 90 | $ 10 | |||||||||||||
Capital injection | ¥ | ¥ 254,298 | ||||||||||||||||
Issuance of ordinary shares | ¥ | ¥ 65 | ¥ 660,166 | |||||||||||||||
IPO | |||||||||||||||||
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Per share value of shares issued (in dollars per share) | $ / shares | $ 13.5 | ||||||||||||||||
Private placement | |||||||||||||||||
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Per share value of shares issued (in dollars per share) | $ / shares | $ 13.5 | ||||||||||||||||
ADSs | IPO | |||||||||||||||||
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Issuance of ordinary shares (in shares) | shares | 7,500,000 | 7,500,000 | |||||||||||||||
ADSs | Private placement | |||||||||||||||||
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Issuance of ordinary shares (in shares) | shares | 740,741 | 740,741 | |||||||||||||||
Ordinary Shares | |||||||||||||||||
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Issuance of ordinary shares (in shares) | shares | 1,000,000,000 | 1,000,000,000 | 164,814,815 | ||||||||||||||
Issuance of ordinary shares | $ 1,648 | ¥ 10 | ¥ 65 | ¥ 11 | |||||||||||||
Shares issued from exercise of stock option and RSUs | shares | 47,573,600 | 12,002,820 | |||||||||||||||
Value of shares issued from exercise of stock option and RSUs | ¥ | ¥ 36,930 | ||||||||||||||||
Ordinary Shares | IPO | |||||||||||||||||
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Issuance of ordinary shares (in shares) | shares | 150,000,000 | 150,000,000 | |||||||||||||||
Ordinary Shares | Private placement | |||||||||||||||||
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Issuance of ordinary shares (in shares) | shares | 14,814,815 | 14,814,815 | |||||||||||||||
Additional paid-in capital | |||||||||||||||||
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Capital injection | $ 39,390 | ¥ 254,300 | 254,298 | ||||||||||||||
Issuance of ordinary shares | ¥ | ¥ 660,160 | ¥ 660,155 | |||||||||||||||
Value of shares issued from exercise of stock option and RSUs | ¥ | ¥ 10,750 | ||||||||||||||||
Rong Jin Hui Yin, Jin Xiang Yin Rui and Yin Tian Xia Technology | |||||||||||||||||
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Paid up capital | ¥ | ¥ 125,000 | ||||||||||||||||
Gold Master HK | |||||||||||||||||
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Fair value of total consideration transferred | ¥ | ¥ 1,427,871 | ||||||||||||||||
Ownership percentage acquired | 100.00% | ||||||||||||||||
Ordinary shares issued | shares | 200,890,940 | ||||||||||||||||
Additional paid-in capital in Gold Master HK acquisition | ¥ | ¥ 1,146,252 | ||||||||||||||||
Qian Zhong Su | Rong Jin Hui Yin, Jin Xiang Yin Rui and Yin Tian Xia Technology | |||||||||||||||||
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Fair value of total consideration transferred | ¥ | ¥ 107,260 | ||||||||||||||||
Founding Shareholders | |||||||||||||||||
ORDINARY SHARES AND ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||
Shareholder loan | $ 39,390 | ¥ 254,300 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017USD ($)shares | Dec. 31, 2017CNY (¥)shares | Jun. 02, 2017USD ($) | Dec. 31, 2016shares |
TREASURY STOCK | ||||
Stock repurchase program, authorized amount | $ | $ 30,000 | |||
Treasury Stock, Shares | shares | 11,331,080 | 11,331,080 | 0 | |
Treasury stock value | $ 5,683 | ¥ 36,973 |
DIVIDEND DISTRIBUTION (Details)
DIVIDEND DISTRIBUTION (Details) ¥ in Thousands | Mar. 23, 2017CNY (¥) | Mar. 31, 2017CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2015CNY (¥) | Mar. 07, 2017$ / shares |
DIVIDEND DISTRIBUTION | |||||
Dividend announced | ¥ 100,000 | ¥ 200,000 | |||
Annual dividend declared (in dollars per share) | $ / shares | $ 0.04 | ||||
Dividend distributed | ¥ 385,110 | ||||
Outstanding dividend payable | ¥ 126,880 | ||||
Board of Directors of Rong Jin Hui Yin, Jin Xiang Yin Rui and Yin Tian Xia Technology | |||||
DIVIDEND DISTRIBUTION | |||||
Dividend announced | ¥ 831,880 |
RETAINED EARNINGS (Details)
RETAINED EARNINGS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
RETAINED EARNINGS | |||
Minimum percentage of net income allocated to statutory reserve | 10.00% | ||
Maximum percentage of statutory reserve related to registered capital | 50.00% | ||
PRC statutory reserve | $ 25,936 | ¥ 168,746 | ¥ 91,968 |
Unreserved retained earnings | 207,150 | 1,347,779 | 943,893 |
Total retained earnings | $ 233,086 | ¥ 1,516,525 | ¥ 1,035,861 |
ACCUMULATED OTHER COMPREHENSI82
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||
Balance at beginning of the period | ¥ 3,316,666 | |||
Net-of-tax amount | ||||
Other comprehensive income before reclassification, Net-of-tax amount | 11,280 | ¥ 50,717 | ¥ 7,384 | |
Amounts reclassified from accumulated other comprehensive income, Net-of-tax amount | (30,794) | (8,021) | (6,143) | |
Balance at end of the period | $ 547,528 | 3,562,380 | 3,316,666 | |
Foreign currency translation adjustment | ||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||
Balance at beginning of the period | 43,937 | 1,241 | ||
Net-of-tax amount | ||||
Other comprehensive income before reclassification, Net-of-tax amount | (18,714) | 42,696 | 1,241 | |
Balance at end of the period | 3,877 | 25,223 | 43,937 | 1,241 |
Unrealized gain on available-for-sale investments, before tax | ||||
Before tax amount | ||||
Other comprehensive income before reclassification, Before tax amount | 37,277 | 10,695 | 8,190 | |
Amounts reclassified from accumulated other comprehensive income, Before tax amount | (38,392) | (10,695) | (8,190) | |
Net-of-tax amount | ||||
Balance at end of the period | (171) | (1,115) | ||
Unrealized gain on available-for-sale investments, Tax | ||||
Income Tax (expenses) or benefit | ||||
Other comprehensive income before reclassification, Tax (expenses) or benefit | (7,283) | (2,674) | (2,047) | |
Amounts reclassified from accumulated other comprehensive income, Tax (expenses) or benefit | 7,598 | 2,674 | 2,047 | |
Net-of-tax amount | ||||
Balance at end of the period | 48 | 315 | ||
Unrealized gain on available-for-sale investments, net of tax | ||||
Net-of-tax amount | ||||
Other comprehensive income before reclassification, Net-of-tax amount | 29,994 | 8,021 | 6,143 | |
Amounts reclassified from accumulated other comprehensive income, Net-of-tax amount | (30,794) | (8,021) | (6,143) | |
Balance at end of the period | (123) | (800) | ||
Accumulated other comprehensive income | ||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||
Balance at beginning of the period | 43,937 | 1,241 | ||
Net-of-tax amount | ||||
Balance at end of the period | $ 3,754 | ¥ 24,423 | ¥ 43,937 | ¥ 1,241 |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Non-controlling Interest | |||
Non-controlling interests | $ 2,124 | ¥ 13,818 | ¥ (685) |
Sina Shi Jin | |||
Non-controlling Interest | |||
Non-controlling interests | 1,394 | 9,072 | |
Bo Zhong | |||
Non-controlling Interest | |||
Non-controlling interests | $ 730 | ¥ 4,746 | |
Da Xiang Ping Tai | |||
Non-controlling Interest | |||
Non-controlling interests | ¥ (685) |
COMMITMENTS AND CONTINGENCIES84
COMMITMENTS AND CONTINGENCIES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Future minimum lease payments under non-cancellable operating leases agreements | |||
2,018 | ¥ 44,818 | ||
2,019 | 44,417 | ||
2,020 | 20,045 | ||
2,021 | 16,517 | ||
2,022 | 4,803 | ||
2023 and thereafter | 14,378 | ||
Total | 144,978 | ||
Rental expenses | ¥ 78,010 | ¥ 46,650 | ¥ 24,430 |
COMMISSIONS AND FEES (Details)
COMMISSIONS AND FEES (Details) ¥ in Thousands, $ in Thousands | 7 Months Ended | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
COMMISSIONS AND FEES | |||||
Spread fees | ¥ 0 | $ 42,210 | ¥ 274,630 | ¥ 932,273 | ¥ 710,799 |
Trading commissions, net | 0 | 288,296 | 1,875,740 | 1,517,394 | 191,846 |
Overnight fees, net | 0 | 4,227 | 27,501 | 97,376 | 88,053 |
Securities advisory fee | 3,182 | 20,704 | |||
Total | $ 337,915 | 2,198,575 | 2,547,043 | 990,698 | |
Total customer rebates recognized | 108,830 | 255,640 | ¥ 166,890 | ||
Customer rebates payable | ¥ 0 | ¥ 0 | ¥ 25,594 |
TRADING GAINS _ (LOSSES) (Detai
TRADING GAINS / (LOSSES) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
TRADING GAINS / (LOSSES) | ||||
Trading gains / (losses) | $ 6,233 | ¥ 40,554 | ¥ 12,563 | ¥ 166,428 |
Spot commodity contracts | ||||
TRADING GAINS / (LOSSES) | ||||
Trading gains / (losses) | (20,460) | (133,116) | 296,809 | 166,015 |
Risk and return transfer arrangement | ||||
TRADING GAINS / (LOSSES) | ||||
Trading gains / (losses) | 20,700 | 134,678 | (296,678) | (9,301) |
Commodity futures contracts | ||||
TRADING GAINS / (LOSSES) | ||||
Trading gains / (losses) | 116 | 753 | (1,780) | 753 |
Trading of physical commodities | ||||
TRADING GAINS / (LOSSES) | ||||
Trading gains / (losses) | (23) | (152) | 2,840 | 771 |
Short term investments | ||||
TRADING GAINS / (LOSSES) | ||||
Trading gains / (losses) | $ 5,900 | ¥ 38,391 | ¥ 11,372 | ¥ 8,190 |
OTHER REVENUES (Details)
OTHER REVENUES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017USD ($)subsidiary | Nov. 30, 2017subsidiary | Aug. 31, 2017CNY (¥)subsidiary | Dec. 31, 2017USD ($)subsidiary | Dec. 31, 2017CNY (¥)subsidiary | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017CNY (¥) |
OTHER REVENUES | ||||||||
Gain on disposal of subsidiaries | ¥ 23,780 | $ 13,405 | ¥ 87,217 | ¥ 677 | ||||
VAT refund | 5,152 | 33,523 | 45,313 | |||||
Sales of silver products | 2,082 | 13,546 | 4,973 | ¥ 2,494 | ||||
Sales of application services | 995 | 6,475 | 28 | 8,122 | ||||
Government grants and others | 9,783 | 63,650 | 14,728 | 35,684 | ||||
Awards from the Exchanges | 90,528 | 38,005 | ||||||
Total | 31,417 | ¥ 204,411 | 155,570 | ¥ 84,305 | ||||
Outstanding award receivable from Exchanges | 30,825 | ¥ 0 | ||||||
VAT refund receivable | $ 1,183 | $ 1,183 | ¥ 43,217 | 7,694 | ||||
Number of subsidiaries disposed | subsidiary | 4 | 4 | 4 | 8 | 8 | |||
Receivables related to subsidiaries disposal | $ 15,216 | $ 15,216 | ¥ 99,000 |
ADVERTISING AND PROMOTION (Deta
ADVERTISING AND PROMOTION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
ADVERTISING AND PROMOTION | ||||
Advertising expenses | $ 48,852 | ¥ 317,843 | ¥ 510,031 | ¥ 221,859 |
Sales agent expenses | 16,449 | 107,022 | 44,260 | |
Total | $ 65,301 | ¥ 424,865 | ¥ 554,291 | ¥ 221,859 |
INCOME TAXES (Details)
INCOME TAXES (Details) - Dec. 31, 2017 ¥ in Thousands | USD ($) | CNY (¥) |
Income taxes | ||
Tax withheld on remittance of dividends | $ | $ 10 | |
HONG KONG | ||
Income taxes | ||
Tax withheld on remittance of dividends | ¥ | ¥ 0 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Details) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
INCOME TAXES | ||||
Applicable tax rates (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% |
Tax withheld on remittance of dividends | $ 10 | |||
Income tax expense | ||||
Current tax expense | 20,649,000 | ¥ 134,350 | ¥ 175,777 | ¥ 84,192 |
Deferred tax expense/(benefit) | 5,411,000 | 35,206 | (50,347) | (1,988) |
Total income tax expense | $ 26,060,000 | ¥ 169,556 | ¥ 125,430 | ¥ 82,204 |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
INCOME TAXES | ||||
Applicable tax rates (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% |
Reconciliation between the reported income tax expense and income tax computed by applying the statutory income tax rate | ||||
Income taxes at PRC statutory income tax rate of 25% | $ 24,459 | ¥ 159,136 | ¥ 262,954 | ¥ 121,305 |
Differential tax rates for non-PRC entities | 316 | 2,053 | 2,497 | 340 |
Preferential income tax rate inside the PRC | (19,612) | (127,602) | (177,256) | (53,453) |
Change in the beginning of the year balance of the valuation allowance due to a change in judgement about the realizability of deferred tax assets | 8,537 | 55,541 | ||
Current year change of valuation allowance on deferred tax assets | 4,266 | 27,757 | ||
Distribution tax on PRC earnings | 4,611 | 30,000 | 10,000 | |
Nondeductible share-based compensation expense | 6,521 | 42,429 | 40,953 | 7,746 |
Tax savings from additional deductions on certain research and development expenses | (1,248) | (8,117) | (6,457) | |
Non-taxable gain on disposal of subsidiaries | (1,363) | (8,869) | ||
Other, net | (427) | (2,772) | (7,261) | 6,266 |
Total income tax expense | $ 26,060 | ¥ 169,556 | ¥ 125,430 | ¥ 82,204 |
Effective tax rate | 27.00% | 27.00% | 12.00% | 17.00% |
INCOME TAXES - Income Tax Exemp
INCOME TAXES - Income Tax Exemption (Details) - ¥ / shares | 8 Months Ended | 12 Months Ended | |||||
Aug. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax holiday | |||||||
Preferential tax rate (as a percent) | 25.00% | 25.00% | 25.00% | ||||
Qualified software enterprise | |||||||
Income tax holiday | |||||||
Per share impact of tax holiday (in dollars per share) | ¥ 0.09 | ¥ 0.13 | ¥ 0.05 | ||||
Qualified research and development expenses | |||||||
Income tax holiday | |||||||
Reduction in tax rate following the exemption period (as a percent) | 50.00% | ||||||
Yin Tian Xia Technology | |||||||
Income tax holiday | |||||||
Preferential tax rate (as a percent) | 15.00% | ||||||
Yin Tian Xia Technology | Qualified software enterprise | |||||||
Income tax holiday | |||||||
Reduction in tax rate following the exemption period (as a percent) | 50.00% | 50.00% | 50.00% | ||||
Yin He You | Qualified software enterprise | |||||||
Income tax holiday | |||||||
Reduction in tax rate following the exemption period (as a percent) | 50.00% | 50.00% | 50.00% | ||||
Gold Master Network | Qualified software enterprise | |||||||
Income tax holiday | |||||||
Reduction in tax rate following the exemption period (as a percent) | 50.00% | 50.00% | 50.00% |
INCOME TAXES - Components Of De
INCOME TAXES - Components Of Deferred Income Taxes (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Jan. 01, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Jan. 01, 2016CNY (¥) |
Components of Deferred Tax Assets and Liabilities | |||||
Net operating loss carryforwards | $ 3,259 | ¥ 21,204 | ¥ 7,616 | ||
Accrued social insurance | 1,462 | 9,514 | 19,412 | ||
Advertising expense carryforwards | 2,168 | 14,108 | 33,906 | ||
Deferred revenue | 239 | 1,553 | |||
Impairment loss | 838 | 5,445 | |||
Unrealized loss on AFS investments | 94 | 613 | |||
Total deferred tax assets | 8,060 | 52,437 | 60,934 | ||
Less: Valuation Allowance | (2,534) | (16,489) | ¥ 0 | 0 | ¥ 0 |
Total net deferred tax assets | 5,526 | 35,948 | 60,934 | ||
Undistributed earnings of PRC entities | (3,074) | (20,000) | (10,000) | ||
Intangible assets | (13,133) | (85,446) | (98,694) | ||
Unrealized gain on AFS investments | (46) | (298) | |||
Equipment and leasehold improvements | (321) | (2,088) | (1,383) | ||
Total deferred tax liabilities | (16,573) | (107,832) | (110,077) | ||
Deferred tax assets, net | 5,292 | 34,431 | 59,551 | ||
Deferred tax liabilities, net | $ (16,340) | ¥ (106,315) | ¥ (108,694) |
INCOME TAXES - Valuation Allowa
INCOME TAXES - Valuation Allowance (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Jan. 01, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Jan. 01, 2016CNY (¥) | |
INCOME TAXES | ||||||
Valuation allowance for deferred tax assets | $ 2,534 | ¥ 16,489 | ¥ 0 | ¥ 0 | ¥ 0 | |
Net increase in total valuation allowance due to disposal of subsidiaries | ¥ 16,490 | |||||
Increase in valuation allowance due to disposal of subsidiaries | 83,300 | |||||
Decrease in valuation allowance due to disposal of subsidiaries | ¥ 66,810 | |||||
Valuation allowance related to net operating loss carryforwards and others | ¥ 16,490 |
INCOME TAXES - Operating Loss C
INCOME TAXES - Operating Loss Carry Forwards (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INCOME TAXES | |||
Net operating loss carryforwards | ¥ 84,810 | ||
Advertising expense carryforwards | 56,430 | ||
Tax effect of the increase in net operating loss | ¥ 20,840 | ¥ 40,840 | ¥ 3,360 |
INCOME TAXES - Reconciliation O
INCOME TAXES - Reconciliation Of Unrecognized Tax Benefits (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrecognized tax benefits | |||||
Amount of unrecognized tax benefits that if recognized would impact the annual effective tax rate | ¥ 3,840 | ¥ 0 | ¥ 3,840 | ||
Unrecognized tax benefit | ¥ 3,838 | ¥ 3,838 | 0 | 3,838 | |
Interest accrued in unrecognized tax benefits as of the balance sheet date | 600 | ¥ 0 | ¥ 1,290 | ||
Interest related to unrecognized tax benefits during the period | 690 | ¥ 600 | |||
Reconciliation of unrecognized tax benefits | |||||
Balance, beginning | 3,838 | ||||
Decrease due to disposal of the subsidiary | (3,838) | ||||
Balance, ending | ¥ 0 | ¥ 3,838 |
INCOME TAXES - Withholding Tax
INCOME TAXES - Withholding Tax (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2017 | |
INCOME TAXES | ||
Withholding tax required on declared dividends upon the consummation of the Reorganization | ¥ 0 | |
Deferred tax liability not recognized | ||
Distribution | ¥ 100,000 | 200,000 |
Unrecognized deferred tax liability on undistributed earnings from the foreign subsidiaries | 200,000 | |
Deferred tax liability provided for the expected earnings distribution | ¥ 20,000 | |
Dividend Distribution, Withholding Tax | 10.00% | |
Undistributed earnings from the foreign subsidiaries | ¥ 1,610,000 | |
Unrecognized deferred tax liability | ¥ 161,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Nov. 18, 2015shares | Nov. 17, 2015shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares |
EARNINGS PER SHARE | ||||||
Net income attributable to Yintech | $ 73,877 | ¥ 480,664 | ¥ 930,668 | ¥ 403,015 | ||
Basic weighted average number of ordinary shares outstanding | 1,398,435,985 | 1,398,435,985 | 1,178,140,974 | 1,000,000,000 | ||
Effect of dilutive share options and RSUs | 47,760,075 | 47,760,075 | 69,590,143 | 52,614,121 | ||
Dilutive weighted average number of ordinary shares | 1,446,196,060 | 1,446,196,060 | 1,247,731,117 | 1,052,614,121 | ||
Basic earnings per share (in dollars per share) | (per share) | $ 0.05 | ¥ 0.34 | ¥ 0.79 | ¥ 0.40 | ||
Diluted earnings per share (in dollars per share) | (per share) | $ 0.05 | ¥ 0.33 | ¥ 0.75 | ¥ 0.38 | ||
Ordinary Shares | ||||||
EARNINGS PER SHARE | ||||||
Initial Public Offering ("IPO) and private issuance to MeMeStar (in shares) | 1,000,000,000 | 1,000,000,000 | 164,814,815 |
EQUITY SETTLED SHARE-BASED TR99
EQUITY SETTLED SHARE-BASED TRANSACTIONS - Stock Option (Details) - Stock options $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016$ / shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2015$ / shares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2013 | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016CNY (¥)shares | |
Number of options | |||||||||
Balance at beginning of year (in shares) | shares | 123,400,854 | 78,656,500 | 83,296,000 | ||||||
Granted (in shares) | shares | 10,000,000 | 63,741,271 | 0 | ||||||
Exercised (in shares) | shares | (30,751,280) | (9,549,860) | |||||||
Forfeited (in shares) | shares | (1,020,914) | (9,447,057) | (4,639,500) | ||||||
Balance at end of year (in shares) | shares | 101,628,660 | 123,400,854 | 78,656,500 | ||||||
Exercisable at end of year (in shares) | shares | 40,004,140 | 40,004,140 | 40,422,998 | ||||||
Weighted average exercise price | |||||||||
Balance at beginning of year (in dollars per share) | $ / shares | $ 0.370 | $ 0.163 | $ 0.163 | ||||||
Granted (in dollars per share) | $ / shares | 0.500 | 0.565 | |||||||
Exercised (in dollars per share) | $ / shares | 0.175 | 0.163 | |||||||
Forfeited (in dollars per share) | $ / shares | 0.213 | 0.174 | 0.163 | ||||||
Balance at end of year (in dollars per share) | $ / shares | 0.361 | 0.370 | $ 0.163 | ||||||
Exercisable balance at end of year (in dollars per share) | $ / shares | $ 0.292 | $ 0.163 | |||||||
Weighted average remaining contractual term | |||||||||
Granted (in years) | 6 years 7 months 28 days | 6 years 3 months | |||||||
Forfeited (in years) | 4 years 8 months 12 days | 4 years 6 months 7 days | 6 years 11 months 1 day | ||||||
Balance at end of year (in years) | 4 years 5 months 27 days | 5 years 4 months 17 days | 5 years 7 months 6 days | 6 years 8 months 1 day | |||||
Exercisable at end of year | 3 years 4 months 28 days | 3 years 6 months 18 days | |||||||
Aggregate intrinsic value | |||||||||
Balance at beginning of year (in dollars) | ¥ 385,869 | ¥ 127,216 | ¥ 83,379 | ||||||
Granted (in dollars) | (1,431) | (113,018) | |||||||
Exercised (in dollars) | (60,623) | (43,562) | |||||||
Forfeited (in dollars) | (1,763) | (42,382) | (7,504) | ||||||
Balance at end of year (in dollars) | 77,496 | 385,869 | 127,216 | ||||||
Exercisable at end of year (in dollars) | ¥ 30,505 | ¥ 126,401 | |||||||
Additional disclosures | |||||||||
Fair value of options granted during the year | ¥ 8,290 | 15,190 | |||||||
Total unrecognized compensation cost related to unvested stock options (in RMB) | $ | $ 31,570 | ||||||||
Recognition period (in years) | 1 year 2 months 23 days | ||||||||
Compensation cost | ¥ 78,120 | 23,180 | 21,210 | ||||||
Tax benefit | ¥ 0 | ¥ 0 | ¥ 0 | ||||||
Fair value assumptions | |||||||||
Expected volatility (expressed as weighted average volatility) (as percent) | 47.23% | 48.44% | |||||||
Risk-free interest rate, minimum (as a percent) | 1.43% | 1.43% | |||||||
Risk-free interest rate, maximum (as a percent) | 1.94% | 1.94% | |||||||
Minimum | |||||||||
Fair value assumptions | |||||||||
Option life (in years) | 5 years 7 months 21 days | 5 years 11 months 19 days | |||||||
Expected dividends (as percent) | 0.00% | 0.00% | |||||||
Maximum | |||||||||
Fair value assumptions | |||||||||
Option life (in years) | 9 years 3 months 26 days | 8 years | |||||||
Expected dividends (as percent) | 1.80% | 1.80% |
EQUITY SETTLED SHARE-BASED T100
EQUITY SETTLED SHARE-BASED TRANSACTIONS - Restricted Share Units (Details) - RSUs - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of units | |||
Balance at beginning of year (in shares) | 7,688,524 | 9,789,875 | |
Granted (in shares) | 39,877,700 | 31,924,995 | 12,665,000 |
Vested (in shares) | (37,631,880) | (30,302,520) | |
Forfeited (in shares) | (916,264) | (3,723,826) | (2,875,125) |
Balance at end of year (in shares) | 9,018,080 | 7,688,524 | 9,789,875 |
Weighted average remaining contractual term | |||
Granted (in years) | 3 months 4 days | 2 months 27 days | 2 years 2 months 16 days |
Forfeited (in years) | 10 months 21 days | 1 year 2 months 16 days | 1 year 3 months |
Balance (in years) | 2 years | 1 year 1 month 28 days | 1 year 3 months |
Aggregate intrinsic value | |||
Balance at beginning of year (in dollars) | ¥ 43,773 | ¥ 26,171 | |
Granted (in dollars) | 124,020 | 181,757 | ¥ 33,857 |
Vested (in dollars) | (117,036) | (172,520) | |
Forfeited (in dollars) | (2,850) | (21,201) | (7,686) |
Balance at end of year (in dollars) | 28,046 | 43,773 | 26,171 |
Additional disclosures | |||
Fair value of RSUs at the grant date | 49,210 | 118,760 | 23,400 |
Total unrecognized compensation cost related to unvested RSUs | ¥ 11,410 | 5,380 | 8,940 |
Recognition period (in years) | 2 years 4 months 10 days | ||
Compensation cost | ¥ 91,600 | 140,630 | 9,770 |
Tax benefit | ¥ 0 | ¥ 0 | ¥ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) ¥ in Thousands, $ in Thousands | Dec. 29, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
RELATED PARTY TRANSACTIONS | ||||||
Goodwill | $ 168,602 | ¥ 1,096,972 | $ 164,395 | ¥ 1,069,603 | ¥ 102 | |
Chun Da | ||||||
RELATED PARTY TRANSACTIONS | ||||||
Fund investments (net of fair value loss) | ¥ 154,180 | |||||
Forthright | ||||||
RELATED PARTY TRANSACTIONS | ||||||
Ownership percentage acquired | 100.00% | |||||
Consideration paid for acquisition | ¥ 12,810 | |||||
Goodwill | ¥ 16,560 | |||||
Forthright International | ||||||
RELATED PARTY TRANSACTIONS | ||||||
Ownership percentage acquired | 100.00% | |||||
Consideration paid for acquisition | ¥ 2,120 | |||||
Goodwill | ¥ 1,340 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) ¥ in Thousands | Mar. 13, 2018$ / shares | Mar. 13, 2018CNY (¥) | Mar. 07, 2017$ / shares | Dec. 31, 2015CNY (¥) |
SUBSEQUENT EVENTS | ||||
Annual dividend declared (in dollars per share) | $ / shares | $ 0.04 | |||
Dividend payable | ¥ | ¥ 126,880 | |||
Subsequent events | ||||
SUBSEQUENT EVENTS | ||||
Annual dividend declared (in dollars per share) | $ / shares | $ 0.02 | |||
Dividend payable | ¥ | ¥ 178,000 |