Financial Performance - The company's operating revenue for the reporting period was ¥787,674,140.44, a decrease of 66.28% compared to ¥2,336,041,148.75 in the same period last year[25]. - The total profit for the reporting period was -¥169,320,560.65, down 155.14% from ¥307,052,034.04 in the previous year[25]. - The net profit attributable to shareholders of the parent company was -¥125,442,881.07, a decline of 154.79% compared to ¥228,961,700.48 in the same period last year[25]. - The net cash flow from operating activities was ¥2,626,128,925.24, a significant improvement from -¥1,282,743,968.59 in the previous year[25]. - The company's basic earnings per share were -¥0.03, a decrease of 160.00% from ¥0.05 in the same period last year[27]. - The weighted average return on net assets was -0.92%, down 2.62 percentage points from 1.70% in the previous year[27]. - The total comprehensive income for the first half of 2022 was -100,036,336.38 RMB, a significant decrease compared to 234,319,095.73 RMB in the same period of 2021[146]. - The net profit after deducting non-recurring gains and losses for the first half of 2022 was -130,788,292.85 RMB, a decrease of 159.14% compared to the same period last year[141]. Assets and Liabilities - Total assets at the end of the reporting period were ¥54,692,772,290.54, an increase of 1.76% from ¥53,748,323,524.71 at the end of the previous year[26]. - Total liabilities increased by 2.90% to ¥40,752,271,831.24 from ¥39,604,243,601.31 at the end of the previous year[26]. - The company's net capital at the end of the reporting period was ¥8,025,060,794.61, down from ¥9,100,531,842.63 at the end of the previous year[30]. - The total liabilities as of June 30, 2022, amounted to RMB 40,752,271,831.24, an increase of 2.9% from RMB 39,604,243,601.31 at the end of 2021[144]. - The total equity attributable to shareholders as of June 30, 2022, was RMB 13,940,500,459.30, a decrease of 1.4% from RMB 14,144,079,923.40 at the end of 2021[144]. Risk Management - The company has established a comprehensive risk management system to identify, assess, and respond to various risks, ensuring operations remain within controllable limits[6]. - The company maintains a prudent risk management strategy, focusing on balancing capital, risk, and returns to provide stable profit returns to shareholders[90]. - The company has established a four-tier comprehensive risk management framework, ensuring full coverage of risk management through a hierarchical authorization system[91]. - The risk management system has been continuously improved, with upgrades to the net capital and stress testing modules, and the implementation of a unified risk data control system[93]. - The company has optimized its risk control methods, revising various risk management guidelines and enhancing frontline risk management processes[92]. Compliance and Governance - The company has confirmed compliance with all relevant regulations and standards during the reporting period[122]. - The company has adhered to the Corporate Governance Code and the Standard Code during the reporting period[122][123]. - The company has strengthened compliance management by continuously tracking legal regulations and optimizing internal management systems to mitigate compliance risks[103]. - The company has adopted a risk-based approach to compliance management, integrating it into all operational processes and decision-making[103]. - The company conducted four shareholder meetings during the reporting period, including the first extraordinary meeting on February 17, 2022, which approved several key resolutions[106][107]. Business Operations - The company has various qualifications for financial services, including IPO underwriting and securities asset management[15][16]. - The company aims to enhance its comprehensive financial service capabilities through the "three-in-one" financial service model, which has been recognized by the provincial government[35]. - The company plans to raise up to RMB 7 billion through a non-public offering of up to 1,392,865,410 A-shares[36]. - The company is actively expanding its public fund distribution scale and enhancing the income proportion of financial product sales[41]. - The company plans to strengthen its investment banking capabilities and increase project reserves in Henan province[49]. Employee and Organizational Structure - The company has 2,732 employees as of the end of the reporting period, with 2,370 in the main company and 362 in subsidiaries[105]. - The company has implemented a performance evaluation mechanism directly linked to annual business targets, enhancing employee motivation and reward for special contributions[105]. - The company has developed targeted training programs for employees, ensuring ongoing training and skill development[105]. - The company has a comprehensive employee benefits package, including basic social insurance and an enterprise annuity plan to improve welfare[105]. Market Position and Strategy - The company ranked 24th in IPO underwriting amount and 22nd in IPO underwriting income, indicating strong performance in investment banking[33]. - The company aims to enhance customer satisfaction and expand its margin financing and securities lending client base in the second half of 2022[45]. - The company plans to deepen cooperation with well-known investment institutions and focus on key areas such as advanced manufacturing and digital economy in the second half of 2022[55]. - The company aims to enhance its investment capabilities by establishing teams in the Yangtze River Delta and Greater Bay Area to attract quality projects[58]. - The company plans to optimize its post-investment management to accelerate the listing process of invested enterprises[58]. Financial Reporting and Audit - The financial report for the first half of 2022 was unaudited, with the financial data prepared in accordance with Chinese accounting standards reviewed by Da Hua Certified Public Accountants[5]. - The financial report includes a statement from the responsible persons ensuring the accuracy and completeness of the financial data presented[5]. - The financial report for the first half of 2022 was approved by the board of directors on August 22, 2022[171]. - The company’s external audit firm reviewed the interim financial data in accordance with Chinese accounting standards[124]. Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 148,997, with 148,958 being A-share holders and 39 H-share holders[126]. - The largest shareholder, Hong Kong Central Clearing Limited, held 1,195,142,850 shares, representing 25.74% of the total shares[128]. - Henan Investment Group Co., Ltd. held 822,983,847 shares, accounting for 17.73% of the total shares[128]. - The top ten shareholders collectively held significant stakes, with the top three alone accounting for over 47% of the total shares[128]. - There were no changes in the total number of shares or the share capital structure during the reporting period[126].

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 787,674,140.44, a decrease of 66.28% compared to CNY 2,336,041,148.75 in the same period last year [18]. - The net profit attributable to shareholders of the parent company was a loss of CNY 125,442,881.07, down 154.79% from a profit of CNY 228,961,700.48 in the previous year [18]. - The net cash flow from operating activities was negative at CNY -1,282,743,968.59, compared to CNY 2,626,128,925.24 in the same period last year [18]. - Basic earnings per share for the first half of 2022 were CNY -0.03, a decrease of 160.00% compared to CNY 0.05 in the same period last year [19]. - The total comprehensive income for the first half of 2022 was a loss of RMB 100.04 million, compared to a gain of RMB 234.32 million in the first half of 2021 [162]. - The company reported a net loss of RMB 130.42 million, compared to a net profit of RMB 232.44 million in the same period of 2021 [162]. Risk Management - The company has established a comprehensive risk management system to identify, assess, and respond to various risks, ensuring operations remain within manageable risk levels [4]. - The company emphasizes the importance of compliance with legal regulations and internal controls to mitigate operational risks [4]. - The company maintains a prudent risk management strategy, focusing on balancing capital, risk, and returns to provide stable profits to shareholders [89]. - The company has established a four-tier comprehensive risk management framework, enhancing risk management effectiveness across all levels [90]. - The company has implemented strict investment authorization systems to manage market risks, including the establishment of a multi-level risk monitoring and assessment system [98]. Compliance and Governance - There were no non-operational fund occupations by controlling shareholders or related parties, indicating a stable financial governance structure [3]. - The report highlights the absence of any significant legal or regulatory violations that could impact the company's reputation or financial standing [3]. - The company strictly complies with environmental protection laws and has not faced any administrative penalties related to environmental issues during the reporting period [117]. - The company has continuously updated its compliance management system to align with legal and regulatory changes, ensuring effective risk identification and management [104]. Shareholder and Capital Management - The company did not propose any profit distribution or capital reserve conversion plans during this reporting period, reflecting a focus on reinvestment [2]. - The total number of shareholders is 148,997, with 148,958 holding A-shares and 39 holding H-shares [140]. - The largest shareholder, Hong Kong Central Clearing Limited, holds 1,195,142,850 shares, accounting for 25.74% of the total shares [140]. - The company plans to issue up to 1,392,865,410 A-shares, raising no more than RMB 7 billion [138]. Market Environment - The stock market environment showed a decline, with the Shanghai Composite Index down 6.63% and the Shenzhen Component Index down 13.20% year-to-date [32]. - The financing and securities lending balance in the capital market was approximately RMB 1.6 trillion, a decrease of 12.49% from the end of the previous year [34]. - The private equity investment market saw a decline in fundraising, with the number of newly raised funds and amounts reaching 2,701 and RMB 772.455 billion, down 7.2% and 10.3% year-on-year respectively [43]. Operational Highlights - The company is actively implementing a "three-in-one" financial service model, integrating investment, banking, and lending services to support the growth of promising enterprises [29]. - The total trading volume of stock and fund transactions reached RMB 835 billion, with a market share of 3.35‰ [33]. - The company aims to enhance its wealth management transformation by expanding the scale of public fund distribution and increasing the proportion of income from financial product distribution [33]. - The company completed 1 IPO underwriting project with a total amount of RMB 1.296 billion, ranking 24th in IPO underwriting amount [38]. Financial Position - Total assets at the end of the reporting period were CNY 54,692,772,290.54, an increase of 1.76% from CNY 53,748,323,524.71 at the end of the previous year [18]. - Total liabilities increased by 2.90% to CNY 40,752,271,831.24 from CNY 39,604,243,601.31 at the end of the previous year [18]. - The equity attributable to shareholders of the parent company decreased by 1.45% to CNY 13,483,278,632.78 from CNY 13,681,883,165.28 at the end of the previous year [18]. - The company's cash and cash equivalents were reported at 13,037,318,378.47 RMB, up from 12,332,030,422.75 RMB year-over-year [160]. Investment and Financing - The company has been recognized as a key player in promoting the capital market development in Henan Province, leveraging its local market advantages [31]. - The company reported a non-recurring gain of ¥5,345,411.78 after accounting for government subsidies and other income, despite a loss in overall performance [22]. - The company has actively optimized its asset-liability management to enhance its debt servicing capabilities [149]. - The company issued a USD 100 million bond with a 4% interest rate, maturing on March 22, 2025, with various forms of guarantees in place [151].

Financial Performance - The company's operating revenue for Q1 2022 was ¥388,483,697.61, representing a decrease of 63.90% compared to the same period last year[2]. - The net profit attributable to shareholders of the listed company was ¥18,432,906.28, down 84.76% year-on-year[2]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥13,732,885.73, a decline of 88.37% compared to the previous year[2]. - Basic earnings per share were ¥0.004, down 86.67% year-on-year[2]. - Diluted earnings per share were also ¥0.004, showing an 86.67% decrease compared to the same period last year[2]. - The significant decline in revenue and profit was primarily due to reduced income from secondary market investment and investment banking services[5]. - The company reported a net profit of 12,934,321.55 RMB, a decrease of 91.7% from 154,880,101.23 RMB in the same quarter last year[12]. - The total profit for Q1 2022 was CNY 13,848,578.24, a significant decrease compared to CNY 156,456,414.75 in Q1 2021[13]. - The net profit attributable to shareholders of the parent company was CNY 18,432,906.28, down from CNY 120,959,031.78 in the same period last year[13]. - The company experienced a decrease in comprehensive income attributable to shareholders of the parent company, totaling CNY 13,609,710.54 in Q1 2022, compared to CNY 119,264,863.14 in Q1 2021[13]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at -¥1,071,347,955.01, reflecting a decrease of 1,330.50%[2]. - The company reported a decrease in cash received from interest, fees, and commissions, totaling CNY 633,142,821.07, down from CNY 790,998,070.01 in Q1 2021[15]. - The total cash outflow from operating activities was CNY 4,356,779,381.65, compared to CNY 2,168,213,060.46 in the previous year[15]. - The company reported a total cash and cash equivalents balance of CNY 14,641,490,289.06 at the end of Q1 2022, down from CNY 15,293,260,935.23 at the end of Q1 2021[16]. - The cash flow from financing activities generated a net inflow of CNY 871,220,914.80, compared to CNY 1,908,231,242.57 in the previous year[16]. - The company recorded a foreign exchange impact on cash and cash equivalents of CNY 2,180,501.14 in Q1 2022[16]. Assets and Liabilities - Total assets at the end of the reporting period were ¥54,088,001,573.95, an increase of 0.63% from the end of the previous year[3]. - Total assets increased to 54,088,001,573.95 RMB from 53,748,323,524.71 RMB, reflecting a growth of 0.6%[11]. - Total liabilities rose to 39,935,583,572.69 RMB, up from 39,604,243,601.31 RMB, indicating an increase of 0.8%[11]. - Shareholders' equity attributable to shareholders of the listed company was ¥13,695,492,875.82, a slight increase of 0.10% from the previous year[3]. - Shareholders' equity totaled 14,152,418,001.26 RMB, slightly up from 14,144,079,923.40 RMB[11]. Revenue Breakdown - Total operating revenue for Q1 2022 was 388,483,697.61 RMB, a decrease of 64.1% compared to 1,076,191,096.51 RMB in Q1 2021[12]. - Net interest income decreased to 9,769,477.43 RMB from 54,988,296.90 RMB, reflecting a decline of 82.2%[12]. - Commission and fee income decreased to 303,072,410.64 RMB, down 30.2% from 433,724,478.88 RMB in the previous year[12]. - Investment income increased significantly to 372,804,464.78 RMB, compared to 180,481,635.53 RMB, marking a growth of 106.7%[12]. - Total operating expenses for Q1 2022 were 375,549,376.06 RMB, down 59.3% from 921,310,995.28 RMB in Q1 2021[12]. - The company reported a decrease in customer deposits to 9,550,363,108.61 RMB from 9,990,048,353.53 RMB, a decline of 4.4%[10]. Return on Equity - The weighted average return on equity was 0.13%, a decrease of 0.77 percentage points year-on-year[2].

Financial Performance - The company's operating revenue for Q1 2022 was RMB 388,483,697.61, representing a decrease of 63.90% compared to the same period last year[5] - Net profit attributable to shareholders for Q1 2022 was RMB 18,432,906.28, down 84.76% year-on-year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 13,732,885.73, a decline of 88.37% compared to the previous year[5] - Basic earnings per share for Q1 2022 were RMB 0.004, down 86.67% from the same period last year[5] - Diluted earnings per share were also RMB 0.004, reflecting an 86.67% decrease year-on-year[5] - The significant decline in revenue and profit was primarily due to decreased income from secondary market investment and investment banking businesses[7] - Total operating revenue for Q1 2022 was RMB 388,483,697.61, a decrease of 64.1% compared to RMB 1,076,191,096.51 in Q1 2021[17] - Net profit for Q1 2022 was RMB 13,161,273.60, down 89.6% from RMB 126,471,003.08 in Q1 2021[18] - Operating profit for Q1 2022 was RMB 12,934,321.55, a decline of 91.7% compared to RMB 154,880,101.23 in Q1 2021[17] - The company reported a decrease in net income attributable to shareholders, which was RMB 18,432,906.28 in Q1 2022 compared to RMB 120,959,031.78 in Q1 2021[18] - The total comprehensive income for Q1 2022 was RMB 8,338,077.86, a decrease from RMB 124,776,834.44 in Q1 2021[18] Cash Flow and Assets - The net cash flow from operating activities was RMB -1,071,347,955.01, a decrease of 1,330.50% year-on-year[5] - Cash flow from operating activities for Q1 2022 was negative at RMB -1,071,347,955.01, contrasting with a positive cash flow of RMB 87,066,272.40 in Q1 2021[19] - The ending balance of cash and cash equivalents as of Q1 2022 was 14,641,490,289.06, a decrease from 15,293,260,935.23 in Q1 2021[21] - Cash and cash equivalents decreased to ¥12,104,754,039.71 from ¥12,332,030,422.75[14] - The total cash inflow from financing activities in Q1 2022 was 5,045,242,316.98, significantly higher than 3,216,543,311.60 in Q1 2021, reflecting increased financing efforts[20] - The net cash flow from financing activities was 871,220,914.80 in Q1 2022, down from 1,908,231,242.57 in Q1 2021, suggesting a reduction in net financing gains[20] - The cash inflow from bond issuance in Q1 2022 was 5,045,242,316.98, compared to 3,166,261,000.00 in Q1 2021, indicating a strong capital raising activity[20] - The cash outflow for the acquisition of fixed assets, intangible assets, and other long-term assets in Q1 2022 was 115,753,822.01, up from 17,151,865.20 in Q1 2021, showing increased investment in long-term assets[20] - The cash inflow from investment activities totaled 85,123,514.26 in Q1 2022, compared to 25,393,077.54 in Q1 2021, indicating improved cash recovery from investments[20] - The impact of exchange rate changes on cash and cash equivalents was 2,180,501.14 in Q1 2022, contrasting with -557,215.23 in Q1 2021, reflecting a positive currency effect[20] - The cash flow from other financing activities in Q1 2022 was 50,282,311.60, compared to 18,212,119.40 in Q1 2021, indicating an increase in related cash inflows[20] - The cash outflow for debt repayment in Q1 2022 was 4,018,865,000.00, significantly higher than 1,171,127,000.00 in Q1 2021, highlighting increased debt servicing obligations[20] Assets and Liabilities - Total assets at the end of the reporting period were RMB 54,088,001,573.95, an increase of 0.63% from the end of the previous year[5] - The total assets as of March 31, 2022, amount to ¥54,088,001,573.95, an increase from ¥53,748,323,524.71 as of December 31, 2021[14] - The total liabilities as of March 31, 2022, are ¥39,935,583,572.69, compared to ¥39,604,243,601.31 as of December 31, 2021[15] - The company reported a decrease in receivables to ¥100,308,977.39 from ¥98,055,900.27[14] - The weighted average return on net assets was 0.13%, a decrease of 0.77 percentage points compared to the end of the previous year[5] - Equity attributable to shareholders at the end of the reporting period was RMB 13,695,492,875.82, a slight increase of 0.10% compared to the previous year[5] - The total equity of the company is not explicitly stated but can be inferred from the total assets and liabilities[15] Shareholding Structure - The top shareholder, Hong Kong Central Clearing Limited, holds 1,195,141,850 shares, representing 25.74% of the total shares[9] - Henan Investment Group Limited holds 822,983,847 shares, accounting for 17.73% of the total shares[9] - The company has a significant portion of its shares held by state-owned enterprises, indicating a strong government influence in its ownership structure[10]

Financial Performance - The company achieved operating revenue of RMB 4.421 billion in 2021, a year-on-year increase of 42.46%[104]. - Net profit attributable to shareholders reached RMB 513 million, representing a significant year-on-year growth of 392.04%[105]. - Operating expenses amounted to RMB 3.710 billion, an increase of 25.58% compared to the previous year[104]. - The company reported a net profit margin of 12%, which is an improvement from 10% in the previous year[187]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion in the last fiscal year, representing a 15% year-over-year growth[190]. - The revenue for the last fiscal year reached 1.2 billion, representing a 15% increase compared to the previous year[195]. - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users[194]. Dividends and Share Capital - The company plans to distribute a cash dividend of RMB 0.21 per 10 shares, totaling RMB 97,500,578.70 for the second half of 2021, leading to a cumulative cash dividend of RMB 176,429,618.60 for the year[3]. - The company does not plan to increase share capital from capital reserves or issue bonus shares[3]. - The total share capital of the company as of December 31, 2021, is 4,642,884,700 shares[3]. Risk Management - The company has established a comprehensive risk management system to address various risks, including market, credit, and operational risks[4]. - The company acknowledges potential risks from changes in national macroeconomic policies and regulations affecting the securities industry[4]. - The company faces various risks, including credit risk, market risk, liquidity risk, operational risk, compliance risk, and information technology risk[133]. - The company intends to strengthen its risk mitigation efforts and leverage past successful experiences in risk resolution[132]. Corporate Governance - The company has established a governance structure that includes a shareholders' meeting, a board of directors, and a supervisory board to ensure effective decision-making and oversight[19]. - The company has successfully completed the restructuring of its board and supervisory committee, enhancing governance and decision-making efficiency[166]. - The board consists of 11 members, including 1 executive director and 4 independent non-executive directors, ensuring compliance with legal requirements[170]. - The company has established a robust compliance culture and self-regulation mechanisms to ensure compliant operations and standardized development[140]. Market Expansion and Strategy - The company aims to expand its market presence through strategic partnerships and potential mergers and acquisitions in the financial sector[9]. - The company plans to enhance its margin financing and securities lending business by focusing on high-net-worth clients and improving client usage rates in 2022[66]. - Market expansion plans include entering three new international markets by the end of 2022, targeting a 25% increase in market share[189]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 50 million allocated for potential mergers and acquisitions[188]. Technology and Innovation - The company is actively pursuing new technology developments to improve its service offerings and operational efficiency[9]. - The company is investing heavily in technology development, allocating 150 million towards R&D initiatives[190]. - The company plans to enhance its digital services, expecting a 30% increase in digital revenue streams over the next year[195]. Compliance and Regulatory Adherence - The company has a strong focus on compliance and regulatory adherence, ensuring alignment with the requirements set by the China Securities Regulatory Commission[9]. - The company has maintained compliance with public float requirements under the Hong Kong Listing Rules since its H shares listing[153]. - The company strictly follows the Corporate Governance Code and has met most of the recommended best practices outlined in it[166]. Financial Position - Total assets as of the end of 2021 amounted to CNY 53,748,323,524.71, a 2.62% increase from CNY 52,376,875,557.00 at the end of 2020[40]. - Total liabilities increased by 3.70% to CNY 39,604,243,601.31 from CNY 38,190,399,466.49 in 2020[40]. - The debt-to-asset ratio decreased to 65.65% in 2021 from 66.08% in 2020, a reduction of 0.43 percentage points[42]. Shareholder Information - As of December 31, 2021, Henan Investment Group holds 822,983,847 A shares, representing 17.726% of the total issued shares[148]. - The company does not have any other known shareholders with significant interests in the company's shares as of December 31, 2021[149]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[189]. - Future outlook indicates a projected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion strategies[196].

Financial Performance - The company reported a total revenue of 1,788.27 million for the year 2021[162]. - The company achieved a net profit attributable to shareholders of RMB 513.21 million, with distributable profits of RMB 350.33 million after reserves[199]. - The company's operating revenue for 2021 was ¥4,420,848,497.96, representing a 42.46% increase compared to ¥3,103,301,696.87 in 2020[41]. - The net profit attributable to shareholders of the parent company reached ¥513,210,337.25, a significant increase of 392.04% from ¥104,302,038.78 in the previous year[41]. - The company achieved a revenue of $200 million in the last fiscal year, representing a 10% increase compared to the previous year[39]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion in 2021, representing a growth of 15% compared to the previous year[166]. - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[165]. Dividends and Share Capital - The company plans to distribute a cash dividend of RMB 0.21 per 10 shares, totaling RMB 97,500,578.70 (including tax) for the second half of 2021, with a cumulative distribution of RMB 176,429,618.60 for the year[4]. - The registered capital of Central China Securities Co., Ltd. is RMB 4,642,884,700 as of the end of the reporting period, unchanged from the previous year[14]. - The total share capital of the company as of December 31, 2021, is 4,642,884,700 shares[4]. - The company does not plan to increase capital reserves or issue bonus shares for the year[4]. Risk Management - The company faces significant risks due to its reliance on the domestic economy and market conditions, which can greatly impact its operating performance[6]. - The company has established a comprehensive risk management system to identify, assess, and respond to various risks throughout its operations[7]. - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments, highlighting investment risks[5]. - The company has established a strict investment authorization system and a multi-indicator risk monitoring and assessment system to manage market risk[145]. - The company is actively researching hedging investment strategies using financial derivatives to mitigate market risk exposure[146]. - The company has completed the identification and assessment of operational risks, optimizing processes in areas such as margin trading and brokerage services[150]. Governance and Compliance - The company has established a governance structure including a shareholders' meeting, board of directors, and supervisory board to ensure compliance with relevant laws and regulations[27]. - The company has a comprehensive compliance management system in place, continuously updating internal policies in response to regulatory changes[152]. - The company has successfully completed the renewal of its board of directors and supervisory board, enhancing governance and decision-making efficiency[155]. - The company held two shareholder meetings during the reporting period, including one annual meeting and one extraordinary meeting[159]. - The company has a structured approach to determine the remuneration of external directors and supervisors based on industry market levels[172]. Market Expansion and Strategy - The company aims to improve customer service and accessibility through the establishment of new offices in key areas[34]. - The company plans to expand its market presence by opening 5 new branches in key cities by the end of 2022[39]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and market share[38]. - The company plans to increase its market share in Henan and expand into developed regions like Beijing, Shanghai, Guangzhou, and Shenzhen in 2022[68]. - The company is focusing on optimizing its business lines and expanding its wealth management and investment banking services in response to market opportunities[52]. Technology and Innovation - The company is investing in technology upgrades to enhance operational efficiency across all branches[35]. - The company is investing in new technology development, allocating D million towards R&D initiatives aimed at enhancing product offerings[164]. - The company is investing heavily in technology development, with a budget allocation of 50 million for R&D in the next year[166]. - The company has launched a new mobile trading platform, which has already attracted 100,000 users within the first month[38]. Employee and Training Initiatives - The total number of employees in the parent company is 2,386, while the main subsidiaries have 341 employees, resulting in a total of 2,727 employees[193]. - The company has implemented a salary policy that includes basic salary, allowances, performance bonuses, and benefits, with a focus on rewarding outstanding performance[194]. - A training plan has been established to enhance the professional capabilities and career qualities of employees, focusing on management skills and business knowledge[195]. - The company conducted 8 internal training sessions with a total of 1,227 participants and organized 56 external training sessions with 168 participants, spending a total of RMB 1.987 million on training[196]. Financial Position - Total assets at the end of 2021 amounted to ¥53,748,323,524.71, reflecting a 2.62% increase from ¥52,376,875,557.00 at the end of 2020[41]. - The company's total liabilities increased by 3.70% to ¥39,604,243,601.31 from ¥38,190,399,466.49 in 2020[41]. - The net capital at the end of the reporting period was ¥9,100,531,842.63, down from ¥10,141,843,317.23 at the end of the previous year[44]. - The liquidity coverage ratio improved to 170.42% from 169.52% in the previous year[44]. Customer Engagement and Satisfaction - User data indicates a steady increase in customer engagement and service utilization across the network[34]. - The company reported a customer satisfaction rate of 85%, indicating strong user engagement and service quality[39]. - The company reported a significant increase in user data, with a growth rate of 15% year-over-year[38]. - User data showed an increase in active users, reaching 5 million, which is a 20% increase year-over-year[166].

Financial Performance - Operating revenue for Q3 2021 reached ¥1,137,702,274.62, an increase of 18.70% compared to the same period last year[2] - Net profit attributable to shareholders for Q3 2021 was ¥267,791,961.79, a significant increase of 379.05% year-on-year[2] - Year-to-date net profit attributable to shareholders reached ¥496,753,662.27, reflecting a 472.61% increase compared to the same period last year[2] - Basic earnings per share for Q3 2021 was ¥0.06, up 500.00% from the previous year[4] - Total operating revenue for Q3 2021 reached ¥3,473,743,423.37, a significant increase of 57.4% compared to ¥2,208,417,017.57 in Q3 2020[15] - Net profit for Q3 2021 was ¥504,072,804.71, up from ¥97,632,160.16 in Q3 2020, representing a growth of 415.5%[15] - The company reported a total comprehensive income of ¥505,284,681.14 for Q3 2021, compared to ¥109,698,578.40 in Q3 2020, indicating a substantial increase of 360.5%[16] - Basic and diluted earnings per share for Q3 2021 were both CNY 0.11, compared to CNY 0.02 in Q3 2020, representing a 450% increase[17] Assets and Liabilities - Total assets as of the end of Q3 2021 amounted to ¥54,816,012,271.39, representing a 4.66% increase from the end of the previous year[4] - The company reported a total asset value of ¥54,816,012,271.39 as of Q3 2021, up from ¥52,376,875,557.00 in the previous year, reflecting a growth of 4.6%[14] - Total liabilities increased to ¥40,233,094,281.77 in Q3 2021, compared to ¥38,190,399,466.49 in Q3 2020, an increase of 5.4%[14] - The equity attributable to shareholders of the parent company rose to ¥13,779,947,494.37 in Q3 2021, compared to ¥13,368,714,617.90 in Q3 2020, an increase of 3.1%[14] Cash Flow - The net cash flow from operating activities for the year-to-date period was -¥814,953,277.79, a decrease of 165.27% compared to the previous year[4] - Total cash inflow from operating activities for the first nine months of 2021 was CNY 6,363,033,575.01, a decrease of 5.9% from CNY 6,762,156,614.50 in the same period of 2020[17] - Net cash flow from operating activities for the first nine months of 2021 was -CNY 814,953,277.79, compared to CNY 1,248,671,779.24 in the same period of 2020[17] - Cash inflow from investment activities for the first nine months of 2021 was CNY 998,353,349.54, significantly higher than CNY 57,496,076.64 in the same period of 2020[17] - Net cash flow from investment activities for the first nine months of 2021 was CNY 932,304,021.42, compared to -CNY 1,598,204,803.28 in the same period of 2020[17] - Total cash inflow from financing activities for Q3 2021 was CNY 9,056,046,525.00, an increase from CNY 8,704,767,425.25 in Q3 2020[19] - Net cash flow from financing activities for Q3 2021 was CNY 846,585,201.85, down from CNY 1,760,589,840.30 in Q3 2020[19] - The ending balance of cash and cash equivalents as of Q3 2021 was CNY 14,277,215,495.03, compared to CNY 13,213,478,941.15 at the end of Q3 2020[19] - The company reported a net increase in cash and cash equivalents of CNY 964,893,203.79 for Q3 2021, compared to CNY 1,408,003,214.59 in Q3 2020[19] Shareholder Information - The company reported a total of 150,386 common shareholders at the end of the reporting period[7] - The largest shareholder, Hong Kong Central Clearing Limited, holds 25.74% of the shares[7] - The total number of ordinary shareholders at the end of the reporting period was 150,386, with 150,346 being A-share shareholders[9] - The company reported a total of 974,693,847 shares held by Henan Investment Group, accounting for 20.99% of the total issued shares[9] Business Operations - The increase in operating revenue and net profit is primarily attributed to growth in investment banking and securities investment businesses[6] - The company's other business income for Q3 2021 was ¥1,313,845,818.94, compared to ¥847,977,980.18 in Q3 2020, an increase of 55.0%[15] Financial Assets and Investments - As of September 30, 2021, the company's cash and cash equivalents amounted to ¥11,135,692,141.75, an increase from ¥10,951,131,021.90 at the end of 2020, reflecting a growth of approximately 1.68%[12] - The company's total financial assets held for trading reached ¥25,545,414,795.87, up from ¥22,592,572,498.77 at the end of 2020, indicating a growth of about 8.63%[12] - The company has a total of ¥3,160,532,036.77 in settlement reserves, which increased from ¥2,379,100,088.00 at the end of 2020, representing a growth of approximately 32.73%[12] - The company has reported a total of ¥1,199,841,090.90 in buyback financial assets, down from ¥2,055,964,889.83 at the end of 2020, indicating a decline of approximately 41.66%[12] - The company has a total of ¥344,623,084.36 in debt investments, down from ¥456,168,931.89 at the end of 2020, reflecting a decrease of approximately 24.54%[12] Legal Matters - The company has disclosed ongoing litigation with a claim amounting to ¥20,000,000 related to a contract dispute[10] - The company has not reported any new developments in previously disclosed litigation matters during the reporting period[11] Accounting Standards - The company has not applied the new leasing standards starting from 2021[19]

Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.17 per 10 shares (tax included) for the first half of 2021, pending approval from the shareholders' meeting[3]. - The board proposed a cash dividend of RMB 0.17 per 10 shares, totaling RMB 78,929,039.90, which represents 34.47% of the net profit attributable to shareholders for the first half of 2021[113]. - The cash dividend distribution plan requires approval at the company's first extraordinary general meeting of 2021[113]. - The company emphasizes a cash dividend policy of at least 20% of the distributable profit, ensuring a stable return for investors[112]. Financial Performance - The company's financial performance is significantly correlated with the domestic securities market, which is influenced by macroeconomic conditions and investor behavior[4]. - Operating revenue for the reporting period (January to June) reached CNY 2,336,041,148.75, an increase of 86.89% compared to the same period last year[23]. - Total profit amounted to CNY 307,052,034.04, reflecting a significant increase of 425.60% year-on-year[23]. - Net profit attributable to shareholders of the parent company was CNY 228,961,700.48, up 642.16% from the previous year[23]. - Basic earnings per share for the reporting period was CNY 0.05, a 400.00% increase compared to CNY 0.01 in the same period last year[25]. - The total assets at the end of the reporting period were CNY 54,272,568,713.13, representing a 3.62% increase from the end of the previous year[24]. - The total liabilities increased by 4.63% to CNY 39,959,336,308.92 compared to the previous year-end[24]. - The company's debt-to-asset ratio was 66.66%, an increase of 0.58 percentage points from the previous year[26]. - The liquidity coverage ratio improved to 191.89%, up from 169.52% at the end of the previous year[28]. Business Challenges - The company faces challenges in its brokerage business due to declining commission rates and market share, which are expected to continue[4]. - The company is experiencing increased competition in the securities industry as foreign investment restrictions are gradually relaxed, potentially impacting its business negatively[4]. - The company’s investment banking business may face challenges in client development and pricing capabilities due to ongoing capital market reforms[4]. - The company’s asset management business may be adversely affected by regulatory changes and intensified competition, potentially reducing management fees and performance rewards[4]. - The company acknowledges that unforeseen events, such as the COVID-19 pandemic, could adversely impact its business and financial performance[4]. Risk Management - The company maintains a robust risk management strategy, aiming for a balance between business scale, profitability, and risk tolerance to provide stable returns to shareholders[94]. - The company has established a four-tier risk management framework, including the board of directors, risk control committees, compliance management, and frontline risk control systems[95]. - The risk management system has been continuously upgraded, focusing on credit risk management and the implementation of an internal rating system[97]. - The company faces major risks including credit risk, market risk, liquidity risk, operational risk, compliance risk, and information technology risk[98]. - Credit risk management involves clear standards for financing parties and collateral, along with monitoring risk indicators such as default probability and exposure[98]. - The company has optimized risk management processes across various departments and subsidiaries to enhance overall risk control[96]. Corporate Governance - The company has adopted and complied with all provisions of the Corporate Governance Code as per the Hong Kong Listing Rules during the reporting period[135]. - The audit committee has reviewed the accounting policies and internal controls, confirming that the consolidated financial reports comply with applicable accounting standards[138]. - The company has maintained high levels of corporate governance to protect shareholder rights and enhance corporate value and accountability[135]. - All directors and supervisors confirmed full compliance with the Standard Code regarding securities transactions during the reporting period[136]. Investment and Growth Strategy - The company is committed to providing new products and services to enhance its competitive position, although innovation may introduce new risks[4]. - The company has been actively involved in various financial advisory services related to mergers and acquisitions, indicating a strategic focus on growth through consolidation[15]. - The company aims to expand its public fund product distribution scale and actively promote private fund distribution to increase revenue from financial product sales[40]. - The company plans to enhance online and offline integration in its brokerage business, leveraging artificial intelligence and big data for personalized financial planning[40]. Market Position - The company is the only registered securities firm in Henan Province, indicating a unique regional advantage[30]. - The company has established a presence in the Hong Kong market, which is crucial for its expansion strategy[21]. - The company ranked 24th in equity underwriting amount in the Shanghai and Shenzhen stock markets, 17th in IPO underwriting amount, and 12th in M&A financial advisory transaction amount, indicating enhanced market influence[32]. Legal Matters - The company is involved in a lawsuit against Kedi Food Group for a stock pledge repurchase contract default, with a reported financing principal of RMB 305 million and a cumulative impairment provision of RMB 83 million as of June 30, 2021[121]. - A civil judgment against Changcheng Film and Television Group (now Zhejiang Qingfeng) mandates the payment of RMB 200 million in principal, with a total receivable balance of RMB 128 million and full impairment provision as of June 30, 2021[122]. - The company is pursuing legal action against Henan Zhongyi Real Estate for a financial trust contract default, with a court ruling supporting the repayment of RMB 99.69 million in principal and a receivable balance of RMB 98 million as of June 30, 2021[123]. - The company has no outstanding court judgments against it and maintains a good credit standing as of the reporting period[124]. Financial Position - The company reported a net cash outflow from operating activities due to changes in repurchase agreements compared to a net inflow in the same period last year[80]. - The company’s overseas assets amounted to RMB 2.214 billion, representing 4.08% of total assets[83]. - The company’s total assets for its subsidiary Zhongyuan Futures Co., Ltd. reached RMB 2.071 billion, with a net profit of RMB 529,300 as of June 30, 2021[89]. - The company's total assets for Zhongding Kaiyuan Investment Management Co., Ltd. were RMB 1.145 billion, with a net profit of RMB 32.62 million for the first half of 2021, reflecting a year-on-year revenue increase of 78.76%[90]. Employee and Management - As of the reporting period, the company employed 2,788 staff, with 2,417 in the main company and 371 in subsidiaries, implementing performance-linked incentive mechanisms[108]. - Changes in the board included the resignation of the executive director and president, Chang Junsheng, effective June 9, 2021, with Zhu Jianmin appointed as acting president[110]. - Independent non-executive directors Chen Zhiyong and Zeng Song were elected on June 30, 2021, replacing Yuan Zhiwei and Ning Jincheng[111].

Pension and Provident Fund Contributions - The company has not forfeited contributions under the pension insurance plan and the mandatory provident fund scheme for the years ending December 31, 2019, and 2020[2] - Contributions that are forfeited under the enterprise annuity plan are retained in the public account for the enterprise annuity, benefiting employees still in the plan[2] Annual Report Disclosures - The company maintains its annual report content unchanged except for the disclosures in this supplementary announcement[2]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 2,336,041,148.75, representing an increase of 86.89% compared to CNY 1,249,975,323.25 in the same period last year [20]. - The total profit for the first half of 2021 reached CNY 307,052,034.04, a significant increase of 425.60% from CNY 58,419,447.21 in the previous year [20]. - The net profit attributable to shareholders of the parent company was CNY 228,961,700.48, up 642.16% from CNY 30,850,805.92 year-on-year [20]. - The company's total comprehensive income for the first half of 2021 was RMB 234,319,095.73, compared to RMB 38,002,397.90 in the first half of 2020 [173]. - The company achieved a net profit of RMB 228,961,700.48 for the first half of 2021, with a cumulative distributable profit of RMB 157,682,349.05 as of June 30, 2021 [118]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -1,282,743,968.59, compared to a positive CNY 3,066,071,606.88 in the same period last year, reflecting a decrease of 141.84% [20]. - The liquidity coverage ratio improved to 191.89% compared to 169.52% in the previous year [24]. - Cash inflow from financing activities reached 7,240,039,000.00 RMB, an increase from 3,278,816,256.00 RMB in the same period last year [177]. - The cash and cash equivalents at the end of the period totaled 14,720,814,704.35 RMB, slightly up from 14,392,034,871.21 RMB at the end of the previous year [175]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 54,272,568,713.13, an increase of 3.62% from CNY 52,376,875,557.00 at the end of the previous year [20]. - Total liabilities increased by 4.63% to CNY 39,959,336,308.92 from CNY 38,190,399,466.49 year-on-year [20]. - The company's net capital decreased to CNY 8,902,816,395.36 from CNY 10,141,843,317.23, indicating a decline in capital of 12.19% [22]. - The debt-to-asset ratio is 66.66%, an increase of 0.88% compared to the previous year [164]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 0.17 per 10 shares, subject to shareholder approval [4]. - A cash dividend of RMB 0.17 per share (including tax) is proposed, totaling RMB 78,929,039.90, which accounts for 34.47% of the net profit attributable to shareholders for the first half of 2021 [119]. - The board of directors has approved a profit distribution plan that maintains a minimum cash dividend ratio of 20% of the distributable profit [118]. Business Challenges and Market Conditions - The company faces challenges in its brokerage business due to declining commission rates and market share, expected to continue in the future [7]. - The investment banking business may experience revenue impacts due to challenges in client development and pricing capabilities amid ongoing capital market reforms [7]. - The asset management sector may see a reduction in scale and fees due to regulatory changes and increased competition [7]. - The company's performance is highly correlated with the domestic securities market, which is influenced by macroeconomic conditions and investor behavior [6]. Risk Management - The company utilizes historical data for risk management, which may not effectively predict future risks, especially in extreme market conditions [8]. - The risk coverage ratio was reported at 235.56%, down from 298.03% in the previous year, indicating a decrease in risk management capacity [22]. - The company faces various risks including credit risk, market risk, liquidity risk, operational risk, compliance risk, and information technology risk [98]. - The company has developed a comprehensive risk management framework for subsidiaries, ensuring adherence to the company's risk control standards [100]. Corporate Governance and Compliance - The company held its annual general meeting on June 30, 2021, where several key resolutions were passed, including the approval of the annual financial report and profit distribution plan [115]. - The company experienced changes in its board of directors, with the resignation of the president and the election of new independent directors [116]. - The compliance management headquarters strengthened compliance checks on key businesses and regions, focusing on self-inspection and anti-money laundering measures [111]. Social Responsibility and Community Engagement - The company has invested over RMB 300,000 in purchasing agricultural products from impoverished counties to support poverty alleviation efforts [124]. - The company has provided financial support to 985 left-behind students and 19 underprivileged college students through its educational assistance programs [124]. - The company has received recognition for its social responsibility efforts, including awards for "Outstanding Contribution to Social Responsibility" and "Annual Leading Figure in State-Owned Enterprises" for its chairman [125]. Subsidiaries and Business Expansion - The company operates 15 subsidiaries, including 5 second-level holding subsidiaries and 1 fourth-level holding subsidiary, with varying ownership percentages [193]. - The company has established and opened 85 approved securities business departments and 30 approved branch offices [189]. - The company is focused on expanding its market presence and enhancing its financial services, as indicated by its historical capital increases and strategic partnerships [184].