Responsible for shareholders
Our responsibility to shareholders is to enhance their asset value, deliver added-value and steady returns. Ping An has been making rational use of funds, following steady and prudent development strategy, developing comprehensive corporate governance structure, and constantly improving risk management capacity.
In 2017, we continued to push forward our "financial + technology" dual-drive strategy and technology-driven innovation in the financial and healthcare industries to enhance the competitiveness of traditional financial services. Through new technologies and new ideas such as mobile Internet, big data and cloud services, we can make our customers' life easier and continue to create value for shareholders through social, mobile, specialized and scene-based technologies. In the first three quarters of 2017, Ping An made a net profit of RMB 75.219 bn, up 16.1% over the same period of last year. Net profit attributable to shareholders of the parent company was RMB66.318 bn, up 17.4% from the same period of last year.
Innovation Platform Details
We further improved the legal and compliance structure of the Group and its subsidiaries, as well as the policy and management operation mechanism. We also made an effort to keep strengthening the earlier legal and compliance management, and identify, assess and prevent legal compliance risks, so as to promote the Group’ s effective, sustainable and sound development; we continuously improved the operational risk and internal control management foundation, strengthened the implementation efforts, established and refined an all-round operational risk management system for our company, optimized the internal control and operational risk management system, and strengthened the automatic control for the internal control evaluation to enhance its efficiency.
In addition, we constantly optimized the related-party transaction management rules, strengthened the identification and audit of such transactions and the fair pricing management, so as to ensure the fairness and equitability, enhance the level of systematic management, optimize the features of the relevant platform for better management results. We strengthened our prevention and control of the common risks of legal and compliance across the Group, and effectively supervised the subsidiaries’ efforts to improve their internal controls and the long-term risk management mechanism. We continued to improve litigation management policies and the capability of handling lawsuits to form a unified, standard litigation management system.
In 2017, we availed the Group’s reform in its investment management system as an opportunity, set up the internal control and operational risk management team and the innovative business risk management team to strengthen our management of operational risks and risks from innovative financial business.
In accordance with the philosophy of “taking policies as the foundation, risks as the orientation, procedures as the ties and the internal control platform as the lever”, we kept optimizing the internal control assessment methodologies, strengthened the day-to-day operations mechanism for internal control assessment, improve features of the system platform and continued to enhance efficiency and effectiveness of internal controls; we actively integrated advanced standards, methodologies and tools for management of operational risks from regulators at home and abroad and built the unified system of internal controls and operational risk management across the entire Group. We also built the system of internet financial risk management in an all-round way and promote the building of compliance and internal control culture.
In order to cope with internet finance risks, in 2017 we increased the internet financial risk management and further promoted the public's ability to identify financial risks in various forms. Our internet subsidiaries set up an investor suitability management mechanism (KYC2.0) that uses big data for accurate assessment of investors’ risk tolerance to match the tolerance level with the product risk level and sell the right products to the right investors.
When conducting corporate governance activities and improving our governance structure, we strictly obey the Corporate Law of PRC, the Securities Law of PRC and other laws, follow the rules promulgated by the regulators with taking the company’ s conditions into account. The company’ s general assembly, board of directors, board of supervisors and senior management perform their respective rights and responsibilities according to the duties granted by the Articles of Association.