北京市君致律师事务所 致：中原证券股份有限公司 一、本次股东大会的召集、召开程序 北京市君致律师事务所（以下简称"本所"）接受中原证券股份有限公司（以 下简称"公司"）的委托，指派律师出席了公司召开的 2024 年第一次临时股东大 会（以下简称"本次股东大会"）。 本所及经办律师依据《中华人民共和国证券法》（以下简称"《证券法》"）、 《律师事务所从事证券法律业务管理办法》和《律师事务所证券法律业务执业规 则（试行）》等规定及本法律意见书出具日以前已经发生或者存在的事实，严格 履行了法定职责，遵循了勤勉尽责和诚实信用原则，进行了充分的核查验证，保 证本法律意见所认定的事实真实、准确、完整，所发表的结论性意见合法、准确， 不存在虚假记载、误导性陈述或者重大遗漏，并承担相应法律责任。 在审查有关文件的过程中，公司保证，其向本所提交的文件和所做的说明是 真实的、准确的、完整的，并已提供出具本法律意见书所必需的文件材料或口头 证言，并保证其所提供的有关副本材料或复印件与正本或原件一致。 关于中原证券股份有限公司 本所律师根据《中华人民共和国公司法》、《证券法》以及《中原证券股份有 限公司章程》（以下简称"《公司章程》 ...

召集人:中原证券股份有限公司董事会 主持人:鲁智礼董事长 一、主持人宣布会议开始 二、报告股东大会现场出席情况 三、审议议案 四、股东发言 五、现场投票表决 六、统计现场投票及网络投票结果 (最终投票结果以公司公 告为准) 七、律师宣读关于本次股东大会现场会议的表决结果和法律 意见书 | | | | 议题1:2023年度董事会工作报告…………………………… | (1) | | --- | --- | | ………………………… 议题2:2023年度监事会工作报告 | (12) | | ……………………… 议题3:2023年度独立董事述职报告 | (19) | | …………………………………… 议题4:2023年年度报告 | (56) | | ……………… 议题5:关于选举第七届监事会监事的议案 | (57) | | …………………………… 议题6:2023年度利润分配方案 | (59) | | …………………………… 议题7:2023年度财务决算报告 | (61) | | ………… 议题8:2023年度董事考核及薪酬情况专项说明 | (70) | | ………… 议题9:2023年度监事考核及薪酬情况专项说明 | ...

医药 分析师：李琳琳 登记编码：S0730511010010 lill@ccnew.com 021-50586983 证券研究报告-行业月报 强于大市(维持) 医药相对沪深 300 指数表现 发布日期：2024 年 04 月 30 日 投资要点： -30% -25% -21% -17% -12% -8% -4% 1% 2023.05 2023.09 2023.12 2024.04 医药 沪深300 资料来源：聚源，中原证券研究所 相关报告 《医药行业月报：关注年报和一季报超预期 相关机会》 2024-02-23 《医药行业月报：行业政策面未发生变化， 建议关注防御属性较强的子板块》 2024-01- 16 《医药行业月报：新版医保目录调整落地， 集采稳步推进 》 2023-12-17 联系人： 马嵚琦 电话： 021-50586973 地址： 上海浦东新区世纪大道 1788 号 16 楼 邮编： 200122 ⚫ 市场行情回顾。2024 年 2 月 20 日至 4 月 29 日，中信生物医药行 业指数上涨 5.84%（按照流通市值加权平均计算），同期沪深 300 上涨 7.59%，（按照流通市值加权平均计算） ...

Financial Performance - The company's operating revenue for Q1 2024 reached RMB 643,976,990.46, representing a year-on-year increase of 38.93%[5] - Net profit attributable to shareholders for the same period was RMB 130,790,222.34, an increase of 85.53% compared to the previous year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 126,639,434.81, reflecting a significant increase of 98.49% year-on-year[5] - Basic earnings per share for Q1 2024 were RMB 0.03, up by 50.00% from the same period last year[5] - Total revenue for Q1 2024 reached RMB 643.98 million, a 38.9% increase from RMB 463.52 million in Q1 2023[20] - Net profit for Q1 2024 was RMB 124.25 million, up 87.5% from RMB 66.19 million in Q1 2023[21] - Investment income for Q1 2024 significantly increased to RMB 427.81 million, compared to RMB 135.77 million in Q1 2023, marking a 214.5% rise[20] - Total operating expenses for Q1 2024 were RMB 512.77 million, an increase of 30.6% from RMB 392.61 million in Q1 2023[20] - The company reported a total comprehensive income of RMB 126.43 million for Q1 2024, compared to RMB 50.93 million in Q1 2023[21] - Other comprehensive income after tax attributable to shareholders was RMB 2.18 million for Q1 2024, recovering from a loss of RMB 15.26 million in Q1 2023[21] Assets and Liabilities - The total assets at the end of the reporting period were RMB 49,034,481,893.72, showing a decrease of 5.16% compared to the end of the previous year[5] - As of March 31, 2024, the total assets of the company amounted to ¥49,034,481,893.72, a decrease from ¥51,701,683,772.46 as of December 31, 2023, representing a decline of approximately 5.15%[17] - The total liabilities decreased to ¥34,757,549,210.89 from ¥37,551,184,086.55, indicating a reduction of approximately 7.5%[18] - The company's total liabilities and equity amounted to RMB 49.03 billion as of March 31, 2024, down from RMB 51.70 billion at the end of 2023[19] Shareholder Information - The equity attributable to shareholders increased to RMB 14,035,734,191.30, marking a 0.96% rise from the previous year[5] - The company's total equity attributable to shareholders reached RMB 14.04 billion as of March 31, 2024, up from RMB 13.90 billion at the end of 2023[19] - The number of ordinary shareholders at the end of the reporting period was 123,148, indicating a stable shareholder base[10] - The company has a significant shareholder, 河南投资集团有限公司, holding 822,983,847 shares, which accounts for 22.05% of the total issued shares[14] Cash Flow - The net cash flow from operating activities was RMB 752,016,707.44, with significant cash inflow due to the recovery of investments in financial instruments[5][8] - In Q1 2024, the net cash flow from operating activities was RMB 752,016,707.44, a significant improvement compared to a net outflow of RMB 1,887,075,641.20 in Q1 2023[23] - Total cash inflow from operating activities reached RMB 5,488,737,615.94, up from RMB 3,334,272,374.56 in the same period last year, indicating a growth of approximately 64.5%[23] - The net cash flow from investment activities was negative at RMB 16,746,114.43, a decline from a positive cash flow of RMB 1,067,209,310.84 in Q1 2023[23] - Cash inflow from financing activities totaled RMB 1,468,023,372.70, compared to RMB 3,350,946,699.51 in Q1 2023, reflecting a decrease of about 56.2%[24] - The net cash flow from financing activities was negative at RMB 398,210,473.38, contrasting with a positive cash flow of RMB 1,224,697,087.48 in the previous year[24] - The ending balance of cash and cash equivalents was RMB 13,730,862,030.87, slightly up from RMB 13,703,621,599.81 at the end of Q1 2023[24] - Cash received from interest, fees, and commissions was RMB 471,423,845.79, a slight increase from RMB 462,578,524.04 in Q1 2023[23] - The company reported a decrease in cash paid to employees, totaling RMB 253,849,337.35, down from RMB 502,878,589.89 in the same quarter last year[23] - The cash received from other operating activities increased significantly to RMB 321,129,441.56, compared to RMB 62,412,800.99 in Q1 2023[23] Other Information - The company's cash and cash equivalents increased to ¥11,117,494,031.31 from ¥9,977,189,628.79, reflecting a growth of about 11.43%[17] - The company's short-term financing payables rose to ¥5,146,847,523.85 from ¥4,075,723,383.58, an increase of about 26.4%[18] - The financial investments in trading assets decreased to ¥21,057,245,599.03 from ¥24,271,207,692.01, a decline of approximately 13.3%[18] - The company reported customer deposits of ¥9,276,164,559.03, up from ¥8,158,103,606.55, which is an increase of about 13.7%[17] - The company's derivative financial assets increased significantly to ¥89,774,595.52 from ¥27,910,148.17, marking a growth of approximately 221.5%[17] - The company has engaged in margin financing activities, with notable holdings in various financial instruments, indicating active market participation[15] - The company did not apply new accounting standards or interpretations for the first time in 2024[25]

Financial Performance - Operating revenue for Q1 2024 reached ¥643,976,990.46, an increase of 38.93% compared to the same period last year[5] - Net profit attributable to shareholders was ¥130,790,222.34, reflecting an increase of 85.53% year-on-year[5] - Net profit attributable to shareholders after deducting non-recurring gains and losses was ¥126,639,434.81, up 98.49% from the previous year, mainly due to increased investment income[5] - Basic earnings per share for the quarter were ¥0.03, a 50.00% increase compared to the same period last year[5] - Diluted earnings per share also stood at ¥0.03, marking a 50.00% increase year-on-year[5] - Net profit for Q1 2024 was ¥124,251,624.04, compared to ¥66,192,766.10 in Q1 2023, indicating an increase of about 87.6%[26] - Total comprehensive income for Q1 2024 was ¥126,432,996.92, compared to ¥50,932,502.41 in Q1 2023, indicating a year-over-year increase of approximately 148.5%[32] Cash Flow - The net cash flow from operating activities was ¥752,016,707.44, with significant cash inflow from the recovery of investments in trading financial instruments[5] - The net cash flow from operating activities for Q1 2024 was ¥752,016,707.44, a significant improvement from a net outflow of ¥1,887,075,641.20 in Q1 2023[28] - The total cash inflow from operating activities in Q1 2024 was ¥5,488,737,615.94, compared to ¥3,334,272,374.56 in Q1 2023, marking a 64.5% increase[28] - The cash outflow from operating activities in Q1 2024 was ¥4,736,720,908.50, down from ¥5,221,348,015.76 in Q1 2023, indicating improved cash management[28] - The net cash flow from investing activities for Q1 2024 was -¥16,746,114.43, a decline from a net inflow of ¥1,067,209,310.84 in Q1 2023[34] - The net cash flow from financing activities for Q1 2024 was -¥398,210,473.38, compared to a net inflow of ¥1,224,697,087.48 in Q1 2023, reflecting a decrease in financing activities[34] Assets and Liabilities - Total assets at the end of Q1 2024 were ¥49,034,481,893.72, a decrease of 5.16% from the end of the previous year[13] - The company's total assets decreased to ¥49,034,481,893.72 from ¥51,701,683,772.46, reflecting a decline of about 5.2%[23] - Total liabilities decreased to ¥34,757,549,210.89 from ¥37,551,184,086.55, a reduction of approximately 7.5%[23] - The company's trading financial assets decreased to approximately ¥21.06 billion from ¥24.27 billion, a decline of 13.67%[21] Shareholder Information - Shareholders' equity attributable to the parent company was ¥14,035,734,191.30, reflecting a slight increase of 0.96% year-on-year[13] - The company's customer funds deposits reached ¥9.28 billion, up from ¥8.16 billion, reflecting a growth of 13.68%[21] - The company reported a total of 1,195,156,550 shares held by Hong Kong Central Clearing Limited, accounting for 25.74% of total shares[16] - Henan Investment Group holds 822,983,847 shares, representing 17.73% of the total shares, with additional holdings through subsidiaries[17] - The company has a total of 123,112 A-share shareholders and 123,148 H-share shareholders as of the reporting period[16] - The company has no significant changes in major shareholders due to the transfer of shares or lending activities during the reporting period[17] Investment and Income - Investment income surged to ¥427,807,610.26 in Q1 2024, up from ¥135,768,106.91 in Q1 2023, marking a growth of approximately 214.5%[26] - The net interest income for Q1 2024 was ¥28,467,598.95, down from ¥39,689,917.61 in Q1 2023, representing a decline of about 28.2%[25] - The net commission and fee income was ¥152,861,490.42, compared to ¥175,921,184.98 in Q1 2023, indicating a decrease of approximately 13.1%[26] - The company's long-term equity investments stood at approximately ¥1.45 billion, slightly increasing from ¥1.44 billion[21] - The company’s derivative financial assets increased significantly to ¥89.77 million from ¥27.91 million, marking a growth of 221.73%[21] Tax and Expenses - The company reported a tax expense of ¥7,171,638.01 for Q1 2024, up from ¥4,756,390.81 in Q1 2023, representing an increase of about 50.8%[26] - The company's total equity increased to ¥14,276,932,682.83 from ¥14,150,499,685.91, reflecting a growth of about 0.9%[23]

Financial Performance - Operating revenue for 2023 was CNY 1,968,016,572.87, representing a 4.62% increase from CNY 1,881,047,259.12 in 2022[51]. - Net profit attributable to shareholders of the parent company for 2023 was CNY 211,601,553.51, a significant increase of 98.54% compared to CNY 106,577,985.92 in 2022[51]. - The net cash flow from operating activities for 2023 was negative CNY 467,298,168.05, a decrease of 123.34% from CNY 2,002,498,853.10 in 2022[51]. - Total assets at the end of 2023 amounted to CNY 51,701,683,772.46, reflecting a 3.03% increase from CNY 50,182,639,547.46 at the end of 2022[52]. - Total liabilities at the end of 2023 were CNY 37,551,184,086.55, which is a 4.38% increase from CNY 35,975,265,974.01 at the end of 2022[52]. - Basic earnings per share for 2023 were CNY 0.05, up 150.00% from CNY 0.02 in 2022[53]. - The weighted average return on net assets for 2023 was 1.53%, an increase of 0.75 percentage points from 0.78% in 2022[53]. - The net capital at the end of the reporting period was CNY 8,651,125,530.23, an increase from CNY 8,107,804,569.34 at the end of the previous year[54]. - The risk coverage ratio improved to 248.71% from 220.96% in the previous year, indicating enhanced risk management[54]. Shareholder Information - The company plans to distribute a cash dividend of RMB 0.14 per 10 shares, totaling approximately RMB 65 million, subject to shareholder approval[6]. - The total share capital of the company as of December 31, 2023, is 4,642,884,700 shares[6]. - The registered capital of Central China Securities Co., Ltd. is CNY 4,642,884,700.00, remaining unchanged from the previous year[17]. - The company does not plan to increase capital through capital reserves or issue bonus shares[6]. - The company does not face any non-operational fund occupation by controlling shareholders or related parties during the reporting period[6]. - There are no violations of decision-making procedures regarding external guarantees during the reporting period[6]. - The company has not encountered any situations where more than half of the directors cannot guarantee the accuracy and completeness of the report[6]. Risk Management - The company emphasizes that its operations are highly dependent on the domestic economy and market conditions, which significantly impact its performance[7]. - The company is exposed to various risks, including market, credit, and operational risks, which could adversely affect its business[8]. - The company has established a comprehensive risk management system to ensure operations are conducted within manageable risk levels[9]. - The company has committed to continuous improvement of its internal control and compliance systems[9]. - The company has implemented new strategies to improve operational efficiency and risk management[32]. - The company has optimized its risk limit indicators and improved the authorization management system for financing businesses during the reporting period[161]. - The company has established a multi-level risk control indicator monitoring and assessment system, including metrics such as scale, concentration, risk limits, and stop-loss[163]. - The company has enhanced its liquidity risk management by strengthening cash flow management and diversifying financing channels[165]. - The company has developed a reputation risk management system to identify, assess, and monitor reputation risks dynamically[168]. Business Operations and Expansion - The company plans to expand its market presence and enhance its technological capabilities in the coming year[16]. - Future guidance indicates a focus on increasing revenue through strategic partnerships and market expansion initiatives[16]. - The company is committed to developing new financial products to meet evolving market demands[16]. - The company is actively pursuing mergers and acquisitions to strengthen its market presence[32]. - The company has established a new branch in Shanghai, which is part of its expansion strategy[32]. - The company operates a total of 76 brokerage offices distributed across 9 provinces, autonomous regions, and municipalities in China, with 66 offices located in Henan Province[37]. - The company has established new offices in Jiangsu and Hainan provinces, expanding its presence in key markets[35]. - The company aims to achieve a revenue growth target of 15% year-over-year through enhanced marketing strategies and customer acquisition efforts[45]. - The company is exploring partnerships and collaborations to drive innovation and growth in the financial services sector[39]. Compliance and Governance - The company has a governance structure that includes a shareholders' meeting, a board of directors, and a supervisory board to ensure effective oversight and decision-making[28]. - The company operates under the regulations of the Company Law and Securities Law, ensuring compliance and governance standards[28]. - The company has implemented a multi-level review mechanism to strictly control compliance risks associated with new products and major decisions[173]. - The company emphasizes the importance of compliance culture and has conducted ongoing training to improve compliance awareness among all employees[173]. - The company has optimized its compliance assessment indicators to effectively integrate compliance supervision and accountability[173]. Investment and Financial Services - The company holds various business qualifications, including securities brokerage, investment consulting, and asset management, approved by the China Securities Regulatory Commission[18]. - Central China Securities has qualifications for IPO underwriting and financial advisory for mergers and acquisitions, enhancing its service offerings[18]. - The company is also qualified for interbank lending and bond trading, expanding its operational capabilities in the financial market[19]. - The company’s subsidiaries possess qualifications for futures brokerage and asset management, diversifying its financial services[19]. - The company has established a comprehensive service system covering research, investment banking, and investment, enhancing operational efficiency[74]. - The company is actively preparing for the establishment of a public fund management company, with formal application documents submitted to the China Securities Regulatory Commission in October 2023[85]. Market Trends and Economic Conditions - The Shanghai Composite Index fell by 3.70% year-on-year, while the Shenzhen Component Index and the ChiNext Index dropped by 13.54% and 19.41%, respectively[77]. - The bond market showed an overall bull market trend in 2023, with the China Bond New Comprehensive Wealth Index rising by 4.68% from the beginning of the period[95]. - The total fundraising from IPOs in the Shanghai and Shenzhen markets was RMB 341.806 billion, a year-on-year decrease of 40.07%[81]. - The securities industry saw a 9.03% year-on-year increase in operating income, totaling RMB 224.507 billion in the first half of 2023[113]. Corporate Social Responsibility - The company organized a donation of books valued at RMB 65,900 to support rural revitalization efforts, involving 579 employees[194].

[Definitions](index=5&type=section&id=第一节%20释义) This section defines key terms and abbreviations used in the annual report, providing a foundational understanding of its content [Definitions of Common Terms](index=5&type=section&id=一、%20释义) This chapter clarifies professional terms and institutional abbreviations, including internal company titles and external regulatory bodies, essential for report comprehension - The report defines internal entities (e.g., Central China Securities, the Group), governance structures (e.g., Board of Directors, Supervisory Board), and external regulators and markets (e.g., CSRC, SSE, HKEX), specifying the reporting period as January 1 to December 31, 2023[33](index=33&type=chunk) [Company Profile and Key Financial Indicators](index=7&type=section&id=第二节%20公司简介和主要财务指标) This section provides an overview of the company's fundamental information, business qualifications, organizational structure, and key financial performance over the past three years [Company Basic Information](index=7&type=section&id=一、%20公司信息) Central China Securities Co., Ltd., listed in Shanghai and Hong Kong, provides essential contact details and information disclosure channels Key Company Information | Item | Information | | :--- | :--- | | **Company Chinese Name** | 中原证券股份有限公司 | | **Company Chinese Abbreviation** | 中原证券 | | **Company English Name** | CENTRAL CHINA SECURITIES CO.,LTD. | | **A-share Stock Code** | 601375 | | **H-share Stock Code** | 01375 | | **Legal Representative** | Lu Zhili | | **Company Website** | https://www.ccnew.com | [Business Qualifications and Organizational Structure](index=7&type=section&id=公司的各单项业务资格情况) The company holds comprehensive securities business licenses and maintains a robust governance structure with extensive domestic and international service networks - The company possesses comprehensive business licenses, including core qualifications for securities brokerage, investment advisory, underwriting and sponsorship, proprietary trading, asset management, margin financing and securities lending, and fund distribution[37](index=37&type=chunk) - The company has established a sound corporate governance structure, including the Shareholders' Meeting, Board of Directors, and Supervisory Board, supported by various specialized committees and functional departments to ensure standardized operations[247](index=247&type=chunk)[222](index=222&type=chunk) - As of the report disclosure date, the company operates **31 branches** and **76 securities brokerage offices**, with **66 offices** located in Henan Province, indicating a wide national network[254](index=254&type=chunk)[225](index=225&type=chunk) [Key Financial Data and Indicators for the Past Three Years](index=17&type=section&id=八、%20近三年主要会计数据和财务指标) In 2023, the company achieved revenue growth and a significant increase in net profit, while maintaining stable risk control indicators despite negative operating cash flow Key Accounting Data (Consolidated Statements) | Item | 2023 (Yuan) | 2022 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,968,016,572.87 | 1,881,047,259.12 | 4.62% | | **Net Profit Attributable to Parent Company Shareholders** | 211,601,553.51 | 106,577,985.92 | 98.54% | | **Net Cash Flow from Operating Activities** | -467,298,168.05 | 2,002,498,853.10 | -123.34% | | **Total Assets** | 51,701,683,772.46 | 50,182,639,547.46 | 3.03% | | **Equity Attributable to Parent Company Shareholders** | 13,902,762,596.08 | 13,757,829,045.04 | 1.05% | Key Financial Indicators (Consolidated Statements) | Item | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (Yuan/share)** | 0.05 | 0.02 | 150.00% | | **Weighted Average Return on Net Assets (%)** | 1.53 | 0.78 | Increased by 0.75 percentage points | Parent Company Key Risk Control Indicators | Item | End of Reporting Period | End of Prior Year | Trend | | :--- | :--- | :--- | :--- | | **Risk Coverage Ratio (%)** | 248.71 | 220.96 | Up | | **Capital Leverage Ratio (%)** | 19.06 | 18.79 | Up | | **Liquidity Coverage Ratio (%)** | 198.96 | 192.85 | Up | | **Net Stable Funding Ratio (%)** | 150.69 | 158.54 | Down | [Management Discussion and Analysis](index=22&type=section&id=第三节%20管理层讨论与分析) This section provides an in-depth review of the company's operational performance, business segment analysis, industry landscape, core competencies, financial results, and future outlook with risk considerations [Overall Business Performance](index=22&type=section&id=一、%20经营情况讨论与分析) In 2023, the company achieved steady operational growth by implementing four key strategies, optimizing subsidiary business structures, and focusing on cost reduction and efficiency improvements - The company aims to become a leading modern investment bank in core business areas and regional markets, pursuing a development path based on "specialization, integration, platformization, and localization"[273](index=273&type=chunk) - The company's core businesses developed steadily: wealth management transformation deepened with a strong start in investment advisory; bond proprietary trading maintained high returns; investment banking facilitated over **18 billion yuan** in equity and debt financing; and asset management scale significantly increased[272](index=272&type=chunk) - The company guided its subsidiaries to focus on their primary responsibilities, with Zhongzhou Lan Hai specializing in STAR Market follow-on investments, Zhongyuan Futures vigorously developing brokerage business, and Zhongzhou International shifting towards light-asset operations[272](index=272&type=chunk) [Analysis of Main Businesses](index=22&type=section&id=(%E4%BA%8C)%20主要业务分析) The company's business segments showed mixed performance, with brokerage revenue declining, investment banking shifting to debt, and asset management and proprietary trading showing growth [Securities Brokerage Business](index=22&type=section&id=1、%20证券经纪业务) Despite market volatility, the company's brokerage business saw client growth and stable app activity, though revenue declined due to reduced market trading volume - Securities brokerage client accounts reached **2.9891 million**, a **13.63% increase** year-over-year[299](index=299&type=chunk) - The company's Caishangbao APP maintained over **one million monthly active users**, ranking **24th** in internet operation indicators among securities firms[276](index=276&type=chunk) - Full-year public fund sales reached **3.342 billion yuan**, a **3.76% increase** year-over-year[299](index=299&type=chunk) [Investment Banking Business](index=24&type=section&id=2、%20投资银行业务) Investment banking faced challenges from tightened IPOs, leading to a decrease in equity underwriting but a significant increase in bond underwriting and distribution Key Investment Banking Performance | Item | 2023 | | :--- | :--- | | **IPO Joint Lead Underwriting Projects** | 1 project | | **Listed Company Refinancing Lead Underwriting Projects** | 3 projects | | **A-share Equity Lead Underwriting Amount** | 1.656 billion yuan | | **Bond Lead Underwriting Amount** | 7.075 billion yuan (41.27% YoY increase) | | **Bond Distribution Amount** | 9.189 billion yuan (83.49% YoY increase) | [Investment Management Business](index=25&type=section&id=3、%20投资管理业务) The investment management segment, including asset management, private equity, and alternative investments, saw increased scale and strategic fund launches - Total asset management scale reached **3.663 billion yuan**, with large-scale money market products accounting for **2.090 billion yuan**[304](index=304&type=chunk) - Subsidiary Zhongding Kaiyuan managed **16 private equity funds** with a total scale of **6.2995 billion yuan**[307](index=307&type=chunk)[333](index=333&type=chunk) - Subsidiary Zhongzhou Lan Hai (alternative investment) had **47 active projects** with a total scale of **2.535 billion yuan**[310](index=310&type=chunk) [Proprietary Trading Business](index=27&type=section&id=4、%20自营交易) The company's proprietary trading business performed steadily in the bond market, maintaining stable returns and actively expanding OTC derivatives - In fixed income investment, the company expanded its investment scale and effectively avoided significant drawdowns by deeply researching interest rate market trends and flexibly adjusting positions[339](index=339&type=chunk) - In equity investment, adhering to a "neutral" strategy, the company successfully mitigated downside risks in the equity market and actively expanded its over-the-counter derivative products business[339](index=339&type=chunk) [Credit Business](index=28&type=section&id=5、%20信用业务) The company's margin financing and securities lending balance increased, while stock pledge repurchase business was actively reduced to control risks Credit Business Balance | Item | End of Reporting Period | Change from Prior Year-End | | :--- | :--- | :--- | | **Margin Financing and Securities Lending Balance** | 7.408 billion yuan | +8.81% | | **Stock Pledge Repurchase Balance** | 1.580 billion yuan | -26.16% | [Futures Business](index=29&type=section&id=6、%20期货业务) The futures business, conducted through Zhongyuan Futures, saw significant growth in institutional clients, daily average margin, trading volume, and turnover - Zhongyuan Futures' average daily client margin reached **2.206 billion yuan**, a **35.14% increase** year-over-year[373](index=373&type=chunk) - Trading volume was **38.4201 million lots**, up **42.36%**; turnover was **3.219273 trillion yuan**, up **8.99%**[373](index=373&type=chunk) [Overseas Business](index=29&type=section&id=7、%20境外业务) Despite a sluggish Hong Kong market, Zhongzhou International's securities client assets and public fund distribution significantly increased, with improved exchange rankings - Zhongzhou International's total client assets under custody for securities business reached **4.296 billion HKD**, a **2.41% increase** year-over-year[349](index=349&type=chunk) - Cumulative subscription amount for public fund distribution business was approximately **882 million HKD**, an increase of approximately **2.72 times** year-over-year[349](index=349&type=chunk) [Industry Conditions and Core Competencies](index=31&type=section&id=二、%20报告期内公司所处行业情况) In 2023, China's capital market reforms shifted focus to investors, intensifying competition, while the company leveraged its regional, integrated platform, and A+H listing advantages - In 2023, capital market reforms shifted focus from financing to investment and trading, emphasizing "activating the capital market and boosting investor confidence"[401](index=401&type=chunk) - The company's core competencies include: 1. Focusing on regional development advantages by deeply cultivating the Henan market; 2. Integrated platform advantages, building an "one client, one Zhongyuan" operating model; 3. A+H dual-listing platform advantages, providing comprehensive capital market services[384](index=384&type=chunk)[406](index=406&type=chunk)[362](index=362&type=chunk) [Financial Analysis of Operating Performance](index=33&type=section&id=五、%20报告期内主要经营情况) Operating revenue increased due to proprietary and futures businesses, while operating costs remained stable; cash flow from operations decreased due to increased trading investments Key Income Statement and Cash Flow Statement Items | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,968,016,572.87 | 1,881,047,259.12 | 4.62 | Primarily due to increased investment business income in the current period | | **Operating Costs** | 1,758,744,134.17 | 1,765,497,934.13 | -0.38 | Primarily due to decreased business and management fees and credit impairment losses in the current period | | **Net Cash Flow from Operating Activities** | -467,298,168.05 | 2,002,498,853.10 | -123.34 | Primarily due to increased cash outflow from investments in financial instruments in the current period | | **Net Cash Flow from Investing Activities** | 1,891,107,180.96 | -1,451,877,153.18 | Not applicable | Primarily due to increased cash inflow from investment recoveries in the current period | Key Balance Sheet Item Changes | Item | Period-End Amount (Yuan) | Period-Beginning Amount (Yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | **Financial Assets Held for Trading** | 24,271,207,692.01 | 21,614,103,009.80 | 12.29 | Primarily due to increased bond scale at period-end | | **Accounts Receivable** | 421,115,609.11 | 87,679,998.85 | 380.29 | Primarily due to increased receivables from OTC business transactions at period-end | | **Other Debt Investments** | 410,921,462.71 | 2,288,258,640.42 | -82.04 | Primarily due to decreased investment scale in local and corporate bonds at period-end | | **Funds Borrowed** | 3,297,906,994.48 | 1,502,279,361.14 | 119.53 | Primarily due to increased bank borrowings at period-end | [Future Development Outlook and Risk Analysis](index=42&type=section&id=六、%20公司关于公司未来发展的讨论与分析) The company plans to enhance its strategic role in Henan's capital market, focusing on light-asset businesses and improving operational efficiency, while managing identified credit, market, liquidity, and operational risks - The company's future development strategy focuses on strengthening Henan's capital market strategic carrier function, adhering to the "specialization, integration, platformization, and localization" strategies, and pursuing a "differentiated and distinctive" development path centered on clients[433](index=433&type=chunk) - Key operational plans for 2024 include: comprehensively improving operational quality and efficiency, accelerating the implementation of the four major strategies, continuously ensuring organizational support, and strengthening the development of financial culture with Chinese characteristics[451](index=451&type=chunk)[434](index=434&type=chunk)[479](index=479&type=chunk)[452](index=452&type=chunk) - The company identified seven major risks: credit risk, market risk, liquidity risk, reputational risk, operational risk, compliance risk, and information technology risk, with corresponding management and response measures in place[454](index=454&type=chunk) [Corporate Governance](index=51&type=section&id=第四节%20公司治理) This section details the company's governance structure, including board and supervisory board functions, executive compensation, and internal control systems [Overview of Corporate Governance](index=51&type=section&id=一、%20公司治理相关情况说明) As an A+H listed company, the company continuously optimizes its governance structure, ensuring compliance with regulations and maintaining independence across all operations - The company strictly adheres to domestic and international regulations, including the Company Law, Securities Law, and Corporate Governance Code, with no significant discrepancies in its governance practices[529](index=529&type=chunk) - During the reporting period, the company revised its Articles of Association, Board of Directors' Rules of Procedure, and Independent Directors' Work System to adapt to new regulatory requirements and enhance governance[529](index=529&type=chunk) - The company maintains independence from its controlling shareholder in assets, personnel, finance, organization, and business, ensuring no interference in decision-making or operations[529](index=529&type=chunk) [Shareholders' Meeting](index=52&type=section&id=三、%20股东大会情况简介) The company held four shareholders' meetings in 2023, approving key proposals including the annual report, profit distribution, auditor re-appointment, and director elections - A total of **4 shareholders' meetings** were held in 2023, with all proposals approved[532](index=532&type=chunk) - Key proposals included reviewing the 2022 annual report, profit distribution plan, re-appointing auditors, and electing Mr. Lu Zhili as a director of the Seventh Board of Directors[502](index=502&type=chunk)[535](index=535&type=chunk) [Directors, Supervisors, and Senior Management](index=54&type=section&id=四、%20董事、监事和高级管理人员的情况) The report details changes in the board and senior management, including the election of a new chairman, and discloses their tenure, shareholdings, and total remuneration - During the reporting period, Mr. Lu Zhili was elected as the company's Chairman, and Mr. Guan Mingjun resigned as Chairman due to reaching retirement age[576](index=576&type=chunk)[506](index=506&type=chunk) - The total pre-tax remuneration received by all directors, supervisors, and senior management at the end of the reporting period was **13.3243 million yuan**[520](index=520&type=chunk) [Performance of the Board of Directors and Special Committees](index=65&type=section&id=六、%20董事履行职责情况) The Board of Directors held 10 meetings, approving major proposals, while its four specialized committees provided professional support for decision-making - The Board of Directors held **10 meetings** throughout the year, with **5 conducted via communication** and **5 combining in-person and communication methods**[554](index=554&type=chunk) - The Audit Committee held **5 meetings**, reviewing the annual report, internal control evaluation report, and related party transactions[585](index=585&type=chunk)[561](index=561&type=chunk) - The Risk Control Committee held **3 meetings**, deliberating on risk appetite, proprietary business scale, and risk limits[585](index=585&type=chunk)[560](index=560&type=chunk) [Performance of the Supervisory Board](index=70&type=section&id=八、%20监事履行职责情况) The Supervisory Board held five meetings, effectively overseeing company operations, financial status, and the performance of directors and senior management without objection - The Supervisory Board held **5 meetings** throughout the year, approving all proposals and effectively overseeing company operations and internal controls[589](index=589&type=chunk)[565](index=565&type=chunk) - The Supervisory Board had no objections regarding the supervised matters during the reporting period[591](index=591&type=chunk) [Employee Status, Compensation, and Training](index=72&type=section&id=十、%20报告期末母公司和主要子公司的员工情况) The company's workforce of 2,738 employees, primarily with bachelor's degrees or higher, is compensated through a structured policy including performance bonuses and enterprise annuities, supported by diverse training programs Employee Composition | Item | Number of Employees | | :--- | :--- | | **Total Employees** | 2,738 | | **Professional Composition** | | | Brokerage Personnel | 1,786 | | Investment Banking Personnel | 245 | | **Education Level** | | | Master's Degree and Above | 680 | | Bachelor's Degree | 1,899 | - The company's compensation comprises basic salary, allowances, performance bonuses, and benefits, along with an enterprise annuity plan[592](index=592&type=chunk) [Profit Distribution Plan](index=73&type=section&id=十一、%20利润分配或资本公积金转增预案) The board proposed a 2023 profit distribution of **0.14 yuan** per 10 shares (tax inclusive), totaling approximately **65 million yuan**, representing **30.72%** of net profit attributable to parent company shareholders 2023 Profit Distribution Plan | Item | | | :--- | :--- | | **Dividend per 10 Shares (Yuan, tax incl.)** | 0.14 | | **Cash Dividend Amount (Yuan, tax incl.)** | 65,000,385.80 | | **Ratio to Net Profit Attributable to Parent Company Shareholders (%)** | 30.72 | [Internal Control and Subsidiary Management](index=75&type=section&id=十三、%20报告期内的内部控制制度建设及实施情况) The company maintains a comprehensive internal control system and employs a "strategy + operation" model for subsidiary management, ensuring effective risk oversight - The company has established and effectively implemented a comprehensive internal control system, with no significant deficiencies identified[624](index=624&type=chunk)[603](index=603&type=chunk) - The company employs a "strategy + operation" control model for its subsidiaries, with compliance, risk control, and finance departments providing vertical and penetrating management[625](index=625&type=chunk)[606](index=606&type=chunk) - The internal control audit report issued by the company's appointed auditor received a standard unqualified opinion[606](index=606&type=chunk)[627](index=627&type=chunk) [Environmental and Social Responsibility (ESG)](index=81&type=section&id=第五节%20环境与社会责任) This section outlines the company's environmental compliance, social responsibility initiatives, and contributions to rural revitalization efforts [Environmental Information](index=81&type=section&id=一、%20环境信息情况) The company and its subsidiaries are not designated as key polluting entities and incurred no environmental administrative penalties during the reporting period - The company and its subsidiaries are not classified as key polluting entities and received no environmental administrative penalties during the reporting period[685](index=685&type=chunk) [Social Responsibility and Rural Revitalization](index=81&type=section&id=二、%20社会责任工作情况) The company actively fulfills its social responsibilities, publishing a dedicated report and contributing **336.4 thousand yuan** to rural revitalization through product procurement and donations - The company separately disclosed its **"2023 Social Responsibility Report"**[686](index=686&type=chunk) Poverty Alleviation and Rural Revitalization Project Investment | Item | Amount (Million Yuan) | | :--- | :--- | | **Total Investment** | 0.3364 | | Of which: Funds | 0.2705 | | Value of Materials | 0.0659 | [Significant Matters](index=83&type=section&id=第六节%20重要事项) This section covers the company's fulfillment of commitments, major litigation, regulatory penalties, significant related-party transactions, guarantees, and changes in fundraising plans [Fulfillment of Commitments](index=83&type=section&id=一、承诺事项履行情况) The company and its controlling shareholder consistently fulfilled long-term commitments, including avoiding horizontal competition and other refinancing-related pledges - The company and its controlling shareholder, Henan Investment Group, promptly and strictly fulfilled their long-term commitments to avoid horizontal competition[46](index=46&type=chunk) [Major Litigation and Arbitration](index=85&type=section&id=九、%20重大诉讼、仲裁事项) The company was involved in several major stock pledge repurchase disputes, actively pursuing recovery and making progress in certain cases - The company was involved in multiple stock pledge repurchase contract disputes with significant amounts, including counterparties such as Shenwu Technology, Xingguang Holdings, and Kedi Group[54](index=54&type=chunk) - Progress was made in the Kedi Group stock pledge default case, with the company receiving **8.4706 million yuan** in cash repayment for priority claims and obtaining **27,105,906 shares** in 2023[58](index=58&type=chunk) - In the contract dispute between Zhongzhou Lan Hai and Zhongyi Real Estate, the company obtained the right to dispose of **51 properties** in November 2023 and has applied for appraisal and auction[84](index=84&type=chunk) [Penalties and Rectifications](index=90&type=section&id=十、%20上市公司及其董事、监事、高级管理人员、控股股东、实际控制人涉嫌违法违规、受到处罚及整改情况) The company and its subsidiary Zhongyuan Futures received regulatory rectification orders for issues in research reports and private asset management, completing rectifications, though further structural issues were noted in early 2024 - In May 2023, the company received a rectification order from the Henan Securities Regulatory Bureau for deficiencies in its securities research report business system and review mechanisms, which has since been rectified[85](index=85&type=chunk) - Subsidiary Zhongyuan Futures received two rectification orders from the Henan Securities Regulatory Bureau in July and October 2023 for non-standard private asset management operations and internal control deficiencies, both of which have been rectified[681](index=681&type=chunk) - In February 2024, the company again received a rectification order from the Henan Securities Regulatory Bureau for incomplete organizational structure rectification and has submitted a rectification report[727](index=727&type=chunk) [Significant Related-Party Transactions](index=90&type=section&id=十二、%20重大关联交易) The company increased its stake in subsidiary Zhongyuan Futures from **51.357% to 92.29%** through an acquisition, strengthening control over its futures business - The company acquired Zhongyuan Futures equity held by Henan Tiejiantou for **226 million yuan**, increasing its stake from **51.357% to 92.29%** upon completion in October 2023[88](index=88&type=chunk) [Major Contracts and Guarantees](index=92&type=section&id=十三、%20重大合同及其履行情况) As of the reporting period end, the company's total external guarantees amounted to **623.2776 million yuan**, primarily for subsidiary Zhongzhou International's overseas bond issuance Guarantee Status | Item | Amount (Yuan) | | :--- | :--- | | **Total Guarantee Balance for Subsidiaries at Period-End** | 623,277,600 | | **Ratio of Total Guarantees to Company Net Assets (%)** | 4.48 | [Use of Raised Funds](index=93&type=section&id=十四、%20募集资金使用进展说明) In 2023, the company decided to terminate its private placement of A-shares, with the Shanghai Stock Exchange concluding its review in August - The company decided in July 2023 to terminate its private placement of A-shares and applied to the Shanghai Stock Exchange to withdraw relevant documents[93](index=93&type=chunk) - On August 2, 2023, the Shanghai Stock Exchange officially decided to terminate the review of the company's private placement of shares[68](index=68&type=chunk) [Share Changes and Shareholder Information](index=94&type=section&id=第七节%20股份变动及股东情况) This section details the company's stable share capital, recent bond issuances, and shareholder structure, including major holders and ultimate control [Share Changes](index=94&type=section&id=(%E4%B8%80)%20股份变动情况表) During the reporting period, the company's total share capital and equity structure remained unchanged at **4,642,884,700 shares** - During the reporting period, the company's total share capital and equity structure remained unchanged[94](index=94&type=chunk) [Securities Issuance Information](index=94&type=section&id=(%E4%B8%80)%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E6%83%85%E5%86%B5) In 2023, the company successfully issued three bonds, raising **2.5 billion yuan** to supplement working capital and optimize debt structure Securities Issuance Details | Bond Name | Issuance Amount (Billion Yuan) | Interest Rate (%) | Term | | :--- | :--- | :--- | :--- | | **23 Zhongyuan 01** | 10 | 3.68 | 3 years | | **23 Zhongyuan 02** | 10 | 2.61 | 368 days | | **23 Zhongyuan C1** | 5 | 3.70 | 3 years | [Shareholder Information](index=95&type=section&id=(%E4%B8%80)%20股东总数) As of the reporting period end, the company had **127,202** common shareholders, with stable ownership dominated by institutional investors and state-owned entities - As of the end of the reporting period, the company had **127,202 common shareholders**, including **127,167 A-share shareholders** and **35 H-share registered shareholders**[710](index=710&type=chunk) - Controlling shareholder Henan Investment Group Co., Ltd. held a total of **22.05%** of the company's shares through direct and indirect means[72](index=72&type=chunk) - The company's ultimate controlling party is the **Henan Provincial Department of Finance**[178](index=178&type=chunk)[201](index=201&type=chunk) [Preferred Share Information](index=100&type=section&id=第八节%20优先股相关情况) This section confirms that the company had no preferred shares during the reporting period [Preferred Share Status](index=100&type=section&id=第八节%20优先股相关情况) The company had no preferred shares during the reporting period - Not applicable, the company had no preferred shares during the reporting period[180](index=180&type=chunk) [Bond Information](index=101&type=section&id=第九节%20债券相关情况) This section provides an overview of the company's outstanding bonds, their issuance details, and the company's robust debt repayment capabilities [Overview of Outstanding Bonds](index=101&type=section&id=1.%20公司债券基本情况) The company has multiple outstanding corporate and subordinated bonds listed on the Shanghai Stock Exchange, issued to professional investors with varying terms and interest rates - The company has multiple outstanding corporate and subordinated bonds, including "21 Zhongyuan 01", "22 Zhongyuan 01", and "23 Zhongyuan 01", all traded on the Shanghai Stock Exchange[182](index=182&type=chunk)[185](index=185&type=chunk)[188](index=188&type=chunk) [Use of Raised Funds and Debt Repayment Capability](index=104&type=section&id=4.%20报告期末募集资金使用情况) All bond proceeds were used as committed, the company maintained an AAA credit rating, and all debts were serviced on time, demonstrating stable repayment capacity - All proceeds from bonds issued during the reporting period were used as committed in the offering circulars, with no instances of misuse[193](index=193&type=chunk)[195](index=195&type=chunk) - The company's corporate credit rating remained **AAA** with a stable outlook; all maturing and interest-bearing bonds were repaid or paid in full and on time during the reporting period[111](index=111&type=chunk)[162](index=162&type=chunk) Key Debt Repayment Indicators | Item | 2023 | 2022 | Trend | | :--- | :--- | :--- | :--- | | **Asset-Liability Ratio (%)** | 64.77 | 62.94 | Up | | **Interest Coverage Ratio** | 1.32 | 1.17 | Improved | | **EBITDA Interest Coverage Ratio** | 1.49 | 1.31 | Improved | [Financial Report](index=110&type=section&id=第十节%20财务报告) This section presents the company's audited financial statements, including the auditor's opinion, key audit matters, and consolidated financial performance [Audit Report](index=110&type=section&id=一、%20审计意见) Dahua Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2023 financial statements, highlighting key audit matters related to financial asset impairment and fair value assessment - The auditing firm, Dahua Certified Public Accountants (Special General Partnership), issued a **standard unqualified audit opinion**[122](index=122&type=chunk)[149](index=149&type=chunk) - Key Audit Matter One: Determination of impairment provisions for funds lent, financial assets purchased under resale agreements, debt investments, and other debt investments; auditors deemed management's relevant judgments and assumptions reasonable[125](index=125&type=chunk)[152](index=152&type=chunk)[154](index=154&type=chunk) - Key Audit Matter Two: Valuation of financial instruments at fair value; auditors deemed management's judgments and assumptions regarding the fair value assessment of financial assets held for trading, other debt investments, and financial liabilities held for trading reasonable[172](index=172&type=chunk)[157](index=157&type=chunk)[159](index=159&type=chunk) [Consolidated Financial Statements](index=118&type=section&id=合并财务报表) As of year-end 2023, the company's consolidated total assets were **51.702 billion yuan**, with total liabilities of **37.551 billion yuan**, and net profit attributable to parent company shareholders of **212 million yuan** Key Consolidated Balance Sheet Items (2023-12-31) | Item | Amount (Yuan) | | :--- | :--- | | **Total Assets** | 51,701,683,772.46 | | Financial Assets Held for Trading | 24,271,207,692.01 | | Funds Lent | 7,604,853,831.45 | | **Total Liabilities** | 37,551,184,086.55 | | Client Funds for Securities Trading | 11,538,050,603.00 | | Financial Assets Sold Under Repurchase Agreements | 10,602,387,479.57 | | **Total Equity Attributable to Parent Company Shareholders** | 13,902,762,596.08 | Key Consolidated Income Statement Items (2023 Annual) | Item | Amount (Yuan) | | :--- | :--- | | **Total Operating Revenue** | 1,968,016,572.87 | | Net Interest Income | 126,068,459.51 | | Net Fee and Commission Income | 745,988,329.71 | | Investment Income | 873,177,476.72 | | Gains/Losses from Changes in Fair Value | -96,656,528.14 | | **Total Operating Expenses** | 1,758,744,134.17 | | **Total Profit** | 212,248,563.49 | | **Net Profit Attributable to Parent Company Owners** | 211,601,553.51 | [Securities Company Information Disclosure](index=255&type=section&id=第十一节%20证券公司信息披露) This section details the company's significant administrative licensing matters, including branch relocations and cancellations, and notes the absence of regulatory classification disclosure [Administrative Licenses and Regulatory Classification](index=255&type=section&id=一、%20公司重大行政许可事项的相关情况) During the reporting period, the company completed the relocation of 5 branches and 6 brokerage offices, and the cancellation of 2 offices - During the reporting period, the company completed the relocation of **5 branches**, **6 brokerage offices**, the cancellation of **2 offices**, and the renaming of **1 institution**[1674](index=1674&type=chunk)

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB, representing a year-over-year growth of 15%[47]. - Operating revenue for 2023 reached CNY 1,968,016,572.87, an increase of 4.62% compared to CNY 1,881,047,259.12 in 2022[48]. - Net profit attributable to shareholders of the parent company was CNY 211,601,553.51, representing a significant increase of 98.54% from CNY 106,577,985.92 in the previous year[48]. - Basic earnings per share for 2023 was CNY 0.05, up 150.00% from CNY 0.02 in 2022[49]. - The company achieved operating revenue of RMB 1.968 billion, an increase of 4.62% year-on-year[59]. - The net profit attributable to shareholders was RMB 212 million, an increase of RMB 105 million, driven by increased investment income and reduced costs[59]. Risk Management - The company has established a comprehensive risk management system to address various risks, including market, credit, and operational risks[4]. - The company is monitoring various risks including credit, market, and liquidity risks, and has implemented measures to mitigate these risks[60]. - The company faces risks related to changes in national macroeconomic policies and regulations that could adversely affect its operations[4]. - The company has improved its reputation risk management system, enhancing its ability to identify and respond to reputation risks dynamically[144]. - The company has established a multi-level risk control indicator monitoring and assessment system to evaluate market risks using metrics such as VaR, volatility, and Delta[141]. Corporate Governance - The company has implemented governance improvements, revising its articles of association and various meeting rules to enhance decision-making efficiency and risk control[172]. - The company complies with all provisions of the Corporate Governance Code and meets most of the recommended best practices outlined in the code[172]. - The company has established a supervisory board to oversee the actions of directors and senior management, ensuring compliance with laws and regulations[181]. - The board of directors consists of 11 members, elected by the shareholders' meeting, with a term of 3 years[175]. - The company must ensure that all shareholders, especially minority shareholders, have equal rights and can fully exercise their rights during the shareholders' meeting[173]. Market Strategy and Expansion - The company is focused on expanding its market presence and enhancing its service capabilities through strategic partnerships and technological advancements[11]. - Future outlook includes potential growth in user data and market share as the company leverages its qualifications and market strategies[11]. - The company plans to enhance its integrated financial service model to meet the full life cycle needs of clients[73]. - The company aims to strengthen its professional capabilities in investment banking and improve project execution quality[73]. - The company is expanding its market presence, targeting a 25% increase in market share in the next two years[198]. Dividend and Capital Management - The company plans to distribute a cash dividend of RMB 0.14 per 10 shares, totaling approximately RMB 65 million based on a total share capital of 4,642,884,700 shares[3]. - The company does not plan to increase capital through capital reserves or issue bonus shares[3]. - The registered capital of Central China Securities Co., Ltd. remains at RMB 4,642,884,700.00, unchanged from the previous year[12]. - The company completed the issuance of 598,100,000 H-shares at a price of HKD 2.51 per share in June 2014, raising significant capital for expansion[21]. Compliance and Regulatory Standards - The company emphasizes compliance with major laws and regulations, including the Hong Kong Listing Rules and the Securities and Futures Ordinance[63]. - The company has established a mechanism for effective checks and balances in governance, improving decision-making efficiency[172]. - The company has implemented a strict investment authorization system to manage market risks, including monitoring risk limits for proprietary equity and fixed income securities[141]. - The company has strengthened compliance culture and training, enhancing employee awareness of compliance responsibilities[148]. Technological Development - The company is investing in new technology development, allocating 100 million RMB towards R&D initiatives[47]. - The company is focusing on new product development and technological advancements to drive future growth[186]. - Financial technology, including big data and artificial intelligence, is increasingly penetrating all aspects of securities companies, driving digital transformation and operational efficiency improvements[133]. - The company plans to enhance its asset management capabilities by integrating resources and strengthening digital transformation in product creation and asset allocation services[76]. Branch Network and Operational Structure - The company has a total of 31 branches, with 66 located in Henan Province and 10 in other provinces and cities[31]. - The company operates 76 securities business departments distributed across 9 provinces, autonomous regions, and municipalities[31]. - The company has been expanding its branch network since its establishment, with the earliest branch founded in 2003[31]. - The company emphasizes the importance of its branch network in driving overall business growth and customer engagement[31]. User Engagement and Customer Satisfaction - User data showed an increase in active accounts, reaching 500,000, which is a 20% increase compared to the previous year[47]. - Customer satisfaction ratings increased to 90%, reflecting a 5% improvement from last year[47]. - The total number of retail customers in the securities brokerage business reached 2.9891 million, an increase of 13.63% year-on-year[68]. - The average monthly active users of the financial management app remained above one million[68]. Financial Health and Liquidity - The total assets as of the end of 2023 amounted to CNY 51,701,683,772.46, reflecting a growth of 3.03% from CNY 50,182,639,547.46 at the end of 2022[52]. - The liquidity coverage ratio for 2023 was 198.96%, up from 192.85% in the previous year[50]. - The net cash flow from operating activities for 2023 was negative CNY 467,298,168.05, a decline of 123.34% compared to positive CNY 2,002,498,853.10 in 2022[48]. - The company's cash and cash equivalents decreased by 2.95% to RMB 8.55 billion from RMB 8.81 billion[58]. Social Responsibility and Community Engagement - The company organized a donation activity, contributing books valued at RMB 65,900 to support rural revitalization efforts[164]. - The company has established pension plans in accordance with local regulations, with no forfeited contributions reported during the year[163].

Financial Performance - Net profit attributable to shareholders of the listed company decreased by 82.20% in the reporting period, mainly due to a decrease in investment income from trading financial assets[12] - Operating income for the reporting period decreased by 34.65%, primarily due to a reduction in investment income from trading financial assets[12] - Basic earnings per share for the reporting period decreased by 80.00%, mainly due to a decrease in net profit attributable to shareholders of the listed company[12] - Revenue for the reporting period was 431,334,445.05 yuan, a decrease of 34.65% compared to the same period last year[29] - Net profit attributable to shareholders of the listed company was 40,542,007.95 yuan, a decrease of 82.20% compared to the same period last year[29] - Basic earnings per share were 0.01 yuan, a decrease of 80.00% compared to the same period last year[30] - Weighted average return on equity was 0.29%, a decrease of 1.38 percentage points[30] - Net profit attributable to the parent company's shareholders was 207,824,215.93 thousand, while minority shareholders incurred a loss of -5,992,949.48 thousand[49] Income and Expenses - Interest income decreased to RMB 607.78 million, down from RMB 637.73 million in the same period last year[20] - Net fee and commission income decreased to RMB 539.64 million, down from RMB 772.39 million in the same period last year[20] - Net income from brokerage business decreased to RMB 399.01 million, down from RMB 490.63 million in the same period last year[20] - Net income from investment banking business decreased to RMB 46.79 million, down from RMB 185.57 million in the same period last year[20] - Total operating expenses amounted to 1,271,771,385.27 thousand, with business and management fees accounting for 1,092,076,802.98 thousand[49] Assets and Liabilities - Total liabilities increased to RMB 38.44 billion, up from RMB 35.98 billion in the previous period[19] - Total equity attributable to owners of the parent company increased to RMB 13.91 billion, up from RMB 13.76 billion in the previous period[19] - Total assets as of the end of the reporting period were 52,597,135,656.26 yuan, an increase of 4.81% compared to the end of the previous year[30] - The company's monetary funds were 9,096,619,469.25 yuan, a decrease from 10,211,630,004.39 yuan at the end of the previous year[37] - The company's financial investments, including trading financial assets, were 25,796,933,917.18 yuan, an increase from 21,614,103,009.80 yuan at the end of the previous year[37] - The company's total liabilities were 3,244,022,720.57 yuan, a decrease from 4,132,771,764.91 yuan at the end of the previous year[37] Cash Flow - Net cash flow from operating activities was -1,191,543,618.38 yuan[30] - The company's cash flow from operating activities was -1,191,543,618.38 yuan, compared to -801,950,688.28 yuan in the same period last year[40] - Disposal of fixed assets, intangible assets, and other long-term assets resulted in a net cash inflow of 40,924.52 thousand[42] - Total cash inflow from investment activities reached 1,604,901,188.03 thousand, a significant increase from 596,627,837.00 thousand in the previous period[42] - Cash outflow for the acquisition of fixed assets, intangible assets, and other long-term assets was 138,419,724.14 thousand, down from 170,199,142.23 thousand[42] - Net cash flow from investment activities surged to 1,466,481,463.89 thousand, compared to 426,428,694.77 thousand previously[42] - Cash inflow from financing activities totaled 7,717,850,234.07 thousand, with bond issuance contributing 7,709,983,134.07 thousand[52] - Net cash flow from financing activities was negative at -917,092,170.48 thousand, reflecting higher debt repayments of 8,188,294,911.33 thousand[52] - The company's cash and cash equivalents decreased by -641,437,911.28 thousand, ending the period at 12,655,886,057.26 thousand[52] Investment Activities - Investment income stood at 754,765,091.74 thousand, with a notable loss from investments in associates and joint ventures of -4,143,843.66 thousand[49] Earnings Per Share - Basic earnings per share for the first nine months of 2023 was RMB 0.04, compared to RMB 0.02 in the same period last year[22]

Financial Performance - The company's operating revenue for the third quarter was RMB 431,334,445.05, a decrease of 34.65% compared to the same period last year[6]. - The net profit attributable to shareholders for the third quarter was RMB 38,599,834.14, reflecting a decline of 82.20% year-on-year[6]. - The basic earnings per share for the third quarter was RMB 0.01, down 80.00% from the previous year[6]. - Total operating revenue for the first three quarters of 2023 reached RMB 1,477,099,253.79, a slight increase of 2.5% compared to RMB 1,447,675,458.61 in the same period of 2022[18]. - Net interest income increased to RMB 106,943,845.02, up from RMB 81,102,914.56, reflecting a growth of 31.7% year-over-year[18]. - Operating profit for the first three quarters of 2023 was RMB 205,327,868.52, compared to RMB 105,190,673.25 in 2022, marking a significant increase of 95.4%[18]. - Net profit attributable to shareholders of the parent company was RMB 201,831,266.45, up from RMB 95,194,443.69, representing a growth of 111.2% year-over-year[20]. - Basic earnings per share for the first three quarters of 2023 was RMB 0.04, doubling from RMB 0.02 in the same period of 2022[22]. - The company reported a significant decrease in investment income, which fell to RMB 754,765,091.74 from RMB 1,096,734,474.37, a decline of 31.2%[18]. - Other comprehensive income after tax attributable to shareholders of the parent company was RMB 7,896,079.35, down from RMB 64,778,655.37 in the previous year[20]. Assets and Liabilities - Total assets at the end of the reporting period amounted to RMB 52,597,135,656.26, an increase of 4.81% compared to the end of the previous year[6]. - As of September 30, 2023, total assets reached RMB 52.60 billion, an increase from RMB 50.18 billion as of December 31, 2022, reflecting a growth of approximately 4.8%[16]. - Total liabilities increased to RMB 38,438,086,779.91 as of September 30, 2023, compared to RMB 35,975,265,974.01 at the end of 2022, reflecting a growth of 6.8%[17]. - Total equity attributable to shareholders of the parent company rose to RMB 13,905,927,243.99 from RMB 13,757,829,045.04, an increase of 1.1%[17]. Cash Flow - The company reported a net cash flow from operating activities that decreased due to increased investments in financial instruments and repurchase activities[8]. - Operating cash flow for the first three quarters of 2023 was -1,191,543,618.38 RMB, compared to -801,950,688.28 RMB in the same period of 2022, indicating a decline in operational performance[24]. - Cash inflow from investment activities increased significantly to 1,604,901,188.03 RMB in 2023, up from 596,627,837.00 RMB in 2022, reflecting improved investment recovery[24]. - Cash flow from financing activities showed a net outflow of -917,092,170.48 RMB in 2023, compared to -1,198,331,475.48 RMB in 2022, indicating a reduction in financing pressure[25]. - The net increase in cash from operating activities was significantly lower in 2023, with total cash inflows of 4,885,028,297.89 RMB compared to 7,631,376,332.03 RMB in 2022[24]. - The company reported a cash outflow of 6,076,571,916.27 RMB from operating activities in 2023, down from 8,433,327,020.31 RMB in 2022, suggesting improved cost management[24]. - Cash received from investment recovery was 1,536,717,298.70 RMB in 2023, a substantial increase from 522,604,356.02 RMB in 2022, indicating better investment performance[24]. - Cash and cash equivalents decreased to RMB 9.10 billion from RMB 10.21 billion, a decline of about 10.9%[16]. - Total cash and cash equivalents at the end of Q3 2023 were 12,655,886,057.26 RMB, down from 13,299,200,711.19 RMB at the end of Q3 2022[25]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 130,101[10]. - The total number of shares held by the largest shareholder, Hong Kong Central Clearing Limited, is 1,195,149,850, accounting for 25.74% of the total shares[14]. - Henan Investment Group holds 822,983,847 shares, representing 17.73% of the total shares, with no restrictions on share transfer[14]. - The company has a total of 1,023,556,847 shares held by Henan Investment Group, including H-shares, which constitutes 22.05% of the total issued shares[14]. Audit and Compliance - The company did not conduct an audit for the third quarter financial statements[4]. - The board of directors confirmed the accuracy and completeness of the financial report, taking legal responsibility for its content[4].