Financial Performance - The company's operating revenue for the third quarter was RMB 781,017,552.50, a decrease of 15.45% compared to the same period last year[5]. - Net profit attributable to shareholders was RMB 206,298,283.75, down 25.77% year-on-year[5]. - Basic and diluted earnings per share were both RMB 0.07, reflecting a decline of 41.67% compared to the previous year[5]. - Total operating revenue for the first three quarters of 2022 was RMB 2,054,741,067.40, slightly up from RMB 2,053,834,496.06 in 2021, representing a growth of 0.04%[23]. - Net profit for the first three quarters of 2022 was RMB 643,534,947.46, a decrease of 2.08% from RMB 656,901,613.12 in 2021[24]. - Comprehensive income totalled RMB 583,925,860.93, down 23.59% from RMB 764,376,071.80 in the same period last year[25]. - Basic and diluted earnings per share were both RMB 0.23, compared to RMB 0.28 in 2021, reflecting a decrease of 17.86%[25]. - Net profit for the first three quarters of 2022 was RMB 711,863,195.33, up 32.6% from RMB 536,649,920.41 in the same period of 2021[31]. - The total comprehensive income for the first three quarters of 2022 was RMB 629,342,309.89, a decrease from RMB 646,932,634.58 in 2021[31]. Assets and Liabilities - Total assets at the end of the reporting period reached RMB 68,806,722,430.94, an increase of 4.35% from the end of the previous year[6]. - The total liabilities of the company as of September 30, 2022, were RMB 49.56 billion, compared to RMB 49.56 billion as of December 31, 2021, indicating stability in the liability structure[21]. - The total assets as of September 30, 2022, amounted to approximately ¥68.05 billion, an increase from ¥64.62 billion at the end of 2021, representing a growth of about 5%[28]. - The total liabilities as of September 30, 2022, were approximately ¥51.63 billion, up from ¥48.55 billion at the end of 2021, indicating an increase of about 6%[29]. Shareholder Information - Shareholders' equity attributable to the parent company was RMB 16,681,816,832.03, up 1.84% year-on-year[6]. - The company has a total of 100,226 common shareholders at the end of the reporting period[10]. - The top ten shareholders hold a combined total of 1,200,000,000 shares, representing a significant portion of the company's equity[12]. - The controlling shareholder, Wuxi Guolian Development (Group) Co., Ltd., directly holds 19.21% of the company's shares and indirectly holds 29.40% through its controlled entities, totaling 48.60%[14]. - The company's total equity as of September 30, 2022, was approximately ¥16.41 billion, up from ¥16.07 billion at the end of 2021, indicating an increase of about 2%[29]. Cash Flow - The net cash flow from operating activities was not applicable due to a decrease in the scale of funds lent[9]. - Cash flow from operating activities showed a net outflow of RMB 1,687,632,397.02, an improvement from a net outflow of RMB 4,637,043,605.38 in 2021[26]. - Cash inflow from investment activities for the first three quarters of 2022 reached approximately ¥6 billion, a significant increase from ¥3.13 billion in 2021, representing a growth of about 91%[27]. - Total cash inflow from financing activities in the first three quarters of 2022 was approximately ¥14.82 billion, compared to ¥18.53 billion in 2021, indicating a decrease of about 20%[27]. - The net cash flow from financing activities for the first three quarters of 2022 was approximately ¥1.98 billion, down from ¥9.93 billion in 2021, reflecting a decline of about 80%[27]. - The company's cash flow from investment activities showed a net outflow of approximately ¥43.29 million in the first three quarters of 2022, compared to a net outflow of approximately ¥5.18 billion in 2021, indicating a significant improvement[27]. Income and Expenses - Total operating expenses rose to RMB 1,253,294,276.82, an increase of 6.16% compared to RMB 1,180,770,155.95 in 2021[23]. - Net interest income decreased to RMB 89,015,782.42 in 2022 from RMB 161,625,347.88 in 2021, a decline of 45.00%[23]. - Investment income dropped significantly to RMB 484,994,316.82, down 47.40% from RMB 923,487,119.69 in 2021[23]. - The total operating expenses for the first three quarters of 2022 were RMB 880,295,876.40, slightly up from RMB 879,988,783.06 in 2021[30]. - The company reported a decrease in net interest income to RMB 61,017,608.12 from RMB 128,560,948.03, a decline of 52.5%[30]. Other Developments - The company is actively promoting a non-public offering of A-shares, which was approved in meetings held on September 28 and October 20, 2022[16]. - The employee stock ownership plan was approved in April and June 2022, but trading restrictions are currently in place due to the planned non-public offering[15]. - The company reported a significant increase in derivative financial assets, rising to RMB 1.14 billion from RMB 485 million, marking a growth of approximately 135%[18]. - The company has not disclosed any new product or technology developments in the current reporting period[14].

Financial Performance - Earnings attributable to shareholders for the first half of 2022 were RMB 5 billion, compared to RMB 4.37 billion in the same period of 2021[36]. - The net profit attributable to shareholders for the reporting period was RMB 437 million, representing a year-on-year growth of 15.37%[42]. - Total revenue for the six months ended June 30, 2022, was RMB 1,372,871, an increase of 18.4% compared to RMB 1,158,497 for the same period in 2021[198]. - Commission and fee income rose to RMB 761,026, up 18.6% from RMB 641,733 in the previous year[198]. - Interest income under the effective interest method increased to RMB 611,845, representing an 18.4% growth from RMB 516,764 in the prior year[198]. - Net profit for the period was RMB 437,237, reflecting a 15.4% increase compared to RMB 378,997 in the same period of 2021[198]. - The company reported a net investment income of RMB 1,315, an increase from RMB 1,261 in the previous year[198]. - The company recognized a credit impairment loss of RMB 7,644, a significant improvement compared to a loss of RMB 19,830 in the prior year[198]. - The share of profits from associates was RMB 5,309, up from RMB 3,184 in the same period last year[198]. Assets and Liabilities - Total assets as of June 30, 2022, reached RMB 78,681,770, an increase of 19.32% compared to December 31, 2021[33]. - Total liabilities amounted to RMB 62,121,893, reflecting a 25.35% increase from the previous year-end[33]. - Equity attributable to shareholders was RMB 16,559,877, showing a slight increase of 1.09% compared to the end of 2021[33]. - The debt-to-asset ratio increased to 74.96%, up by 4.88 percentage points from 70.08% at the end of 2021[34]. - The net asset value per share increased to RMB 5.85, up 1.21% from RMB 5.78 at the end of 2021[33]. - The company's asset-liability ratio rose to 74.96%, an increase of 4.88 percentage points from 70.08% at the end of 2021[94]. - The operating leverage increased to 3.99 times, up from 3.34 times at the end of 2021, indicating a higher reliance on debt financing[94]. Business Operations and Strategy - The company is focusing on market expansion and new product development strategies to enhance its competitive position[36]. - The company plans to continue investing in technology and innovation to drive future growth[36]. - The company is focusing on transforming from a channel-based investment bank to an industry-focused investment bank, enhancing its wealth management services to meet growing client demands[40]. - The company aims to expand its equity business scale and enhance comprehensive financial services for existing clients in the second half of 2022[52]. - The company plans to enhance asset allocation capabilities and product risk control in the second half of 2022[69]. - The company aims to expand its investment banking business by strengthening IPO project development and maintaining stable growth in bond underwriting[91]. - The company will continue to innovate in equity derivatives and expand trading scale to improve institutional trading service capabilities[88]. - The company plans to enhance its wealth management services and digital operations to maintain its competitive advantage[91]. Market and Client Base - The company’s client base grew to 1.4859 million, marking a year-on-year increase of 10.79%[45]. - Financial product sales amounted to RMB 21.626 billion, a year-on-year increase of 2.50%[45]. - The company’s market share in securities trading reached 0.51%, an increase of 10.87% year-on-year[45]. - The total trading volume of stocks and funds in the Shanghai and Shenzhen markets was RMB 124.56 trillion, with a daily average trading volume of RMB 10.646 billion, a year-on-year increase of 8.55%[43]. Risk Management - The company has established a comprehensive risk management system covering various business types and risks, ensuring risks are controllable, measurable, and bearable[110]. - The risk management structure includes four levels: the Board of Directors and Risk Control Committee, senior management and Risk Management Committee, Risk Management Department, and departmental risk management organizations[111]. - The Chief Risk Officer is responsible for implementing comprehensive risk management and ensuring risks do not exceed established limits[118]. - The company has a dynamic management approach to market risk, utilizing daily calculations of various risk indicators[123]. - Credit risk is primarily managed through an internal credit rating system and ongoing monitoring of counterparties[126]. - The company has implemented measures to manage liquidity risk, including efficient management of funding sources and maintaining adequate liquidity reserves[127]. - Operational risks are mitigated through continuous optimization of internal controls and staff training to enhance risk awareness[128]. - Compliance risks are managed through a robust compliance management system and regular monitoring of regulatory adherence[130]. - The company emphasizes the importance of reputation risk management, establishing mechanisms for monitoring and responding to public sentiment[131]. Corporate Governance - The board of directors consists of eight members, including one executive director and three independent non-executive directors[142]. - The audit committee held two meetings during the reporting period, reviewing and approving 11 proposals[145]. - The supervisory board includes five members, with three shareholder representatives and two employee representatives, and held two meetings to review 15 proposals[147]. - The company has no outstanding fundraising or share issuance as of the reporting period[108]. - The company does not plan to distribute an interim dividend to shareholders[133]. Employee and Organizational Development - The company optimized its performance assessment and salary management systems to strengthen the link between compensation and performance, with adjustments made based on 2021 employee assessment results[108]. - The company plans to enhance its training programs in the second half of the year, focusing on management and leadership training, as well as professional skills improvement[108]. - As of June 30, 2022, the company had a total of 2,614 employees, including 201 brokers, with 2,171 employees in the parent company[108]. Legal and Compliance Matters - The company is involved in a legal dispute with Yihua Enterprises regarding a bond default, seeking compensation of RMB 22,110,364.14 plus interest[148]. - The independent non-executive directors reviewed and agreed that it was not the appropriate time for the company to exercise the option to acquire any or all equity interests in Guolian Futures, considering the best interests of the company's business development and shareholders[153]. - The company received six letters of intent for new direct investment business opportunities from its controlling shareholders or their controlled entities, which were unanimously agreed to be waived due to intense industry competition and low bargaining power[153].

[Important Content Reminders](index=1&type=section&id=%E9%87%8D%E8%A6%81%E5%85%A7%E5%AE%B9%E6%8F%90%E7%A4%BA) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, with no false records, misleading statements, or major omissions - Ge Xiaobo, the company's responsible person, Ge Xiaobo, the person in charge of accounting work, and Chen Zhiying, the head of the accounting department, guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[4](index=4&type=chunk) - The financial statements for this quarter are **unaudited**[5](index=5&type=chunk) [Key Financial Data](index=2&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E8%B2%A1%E5%8B%99%E6%95%B8%E6%93%9A) [Key Accounting Data and Financial Indicators](index=2&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E5%92%8C%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) In Q1 2022, the company's operating revenue increased by 35.15% year-on-year, and net profit attributable to shareholders increased by 20.05% year-on-year; net cash flow from operating activities was a significant net outflow, while total assets and owners' equity attributable to shareholders both increased compared to the end of the previous year | Item | Current Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 636,002,769.33 | 35.15 | | Net Profit Attributable to Shareholders | 188,856,677.80 | 20.05 | | Net Profit Attributable to Shareholders Excluding Non-Recurring Gains and Losses | 185,450,433.08 | 21.20 | | Net Cash Flow from Operating Activities | –5,058,411,560.62 | N/A | | Basic Earnings Per Share (RMB/share) | 0.07 | – | | Diluted Earnings Per Share (RMB/share) | 0.07 | – | | Weighted Average Return on Net Assets (%) | 1.14 | decreased by 0.33 percentage points | | Item | End of Current Period (RMB) | End of Previous Year (RMB) | Change from End of Previous Year (%) | | :--- | :--- | :--- | :--- | | Total Assets | 72,371,982,469.17 | 65,939,237,816.69 | 9.76 | | Owners' Equity Attributable to Shareholders | 16,614,007,632.77 | 16,381,068,287.90 | 1.42 | [Non-Recurring Gains and Losses and Amounts](index=3&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E9%9D%9E%E7%B6%93%E5%B8%B8%E6%80%A7%E6%90%8D%E7%9B%8A%E9%A0%85%E7%9B%AE%E5%92%8C%E9%87%91%E9%A1%8D) Total non-recurring gains and losses for the period amounted to RMB 3,406,244.72, primarily comprising government grants and disposal gains/losses on non-current assets; the company classifies fair value changes and investment income from certain financial instruments as recurring gains and losses | Item | Amount for Current Period (RMB) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 105,290.91 | | | Government Grants Included in Current Profit and Loss | 4,609,628.26 | | | Other Non-Operating Income and Expenses Excluding the Above | –173,259.54 | | | Less: Income Tax Impact | 1,135,414.91 | | | Total | 3,406,244.72 | | - The Group classifies fair value changes and related investment income from held-for-trading financial assets, financial liabilities, and derivative financial instruments as recurring profit and loss items[8](index=8&type=chunk) [Changes and Reasons for Key Accounting Data and Financial Indicators](index=4&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E3%80%81%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99%E7%99%BC%E7%94%9F%E8%AE%8A%E5%8B%95%E7%9A%84%E6%83%85%E6%B3%81%E3%80%81%E5%8E%9F%E5%9B%A0) Operating revenue growth was primarily driven by increased fair value change gains and fee income; the decrease in net cash flow from operating activities was due to a reduction in net cash inflow from repurchase transactions during the reporting period | Item Name | Change (%) | Primary Reason | | :--- | :--- | :--- | | Operating Revenue - Current Period | 35.15 | Increased fair value change gains and fee income in the current period | | Net Cash Flow from Operating Activities - Current Period | N/A | Decreased net cash inflow from repurchase transactions in the current period | [Shareholder Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E6%9D%B1%E4%BF%A1%E6%81%AF) [Total Number of Common Shareholders, Preferred Shareholders with Restored Voting Rights, and Top Ten Shareholders' Holdings](index=5&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E6%9D%B1%E7%B8%BD%E6%95%B8%E5%92%8C%E8%A1%A8%E6%B1%BA%E6%AC%8A%E6%81%A2%E5%BE%A9%E7%9A%84%E5%84%AA%E5%85%88%E8%82%A1%E8%82%A1%E6%9D%B1%E6%95%B8%E9%87%8F%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E6%9D%B1%E6%8C%81%E8%82%A1%E6%83%85%E6%B3%81%E8%A1%A8) As of the end of the reporting period, the company had 86,738 common shareholders; among the top ten shareholders, Wuxi Guolian Development (Group) Co., Ltd. was the largest, holding 19.21% of shares - As of the end of the reporting period, the total number of common shareholders was **86,738**, with no preferred shareholders with restored voting rights[10](index=10&type=chunk) | Shareholder Name | Shareholder Nature | Number of Shares Held | Shareholding Percentage (%) | Number of Restricted Shares | Share Status | Quantity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wuxi Guolian Development (Group) Co., Ltd. | State-owned Legal Person | 543,901,329 | 19.21 | 543,901,329 | None | 0 | | HKSCC Nominees Limited | Overseas Legal Person | 442,491,790 | 15.63 | 0 | Unknown | 0 | | Guolian Trust Co., Ltd. | State-owned Legal Person | 390,137,552 | 13.78 | 390,137,552 | None | 0 | | Wuxi Guolian Local Power Co., Ltd. | State-owned Legal Person | 266,899,445 | 9.43 | 266,899,445 | None | 0 | | Wuxi Minsheng Investment Co., Ltd. | State-owned Legal Person | 73,500,000 | 2.60 | 73,500,000 | None | 0 | | Wuxi No. 1 Cotton Textile Group Co., Ltd. | State-owned Legal Person | 72,784,141 | 2.57 | 72,784,141 | None | 0 | | China Galaxy Securities Co., Ltd. | State-owned Legal Person | 50,907,777 | 1.80 | 50,900,177 | None | 0 | | Caitong Fund - Huatai Securities Co., Ltd. - Caitong Fund Junxiang Yongxi Single Asset Management Plan | Other | 35,650,624 | 1.26 | 35,650,624 | None | 0 | | Everbright Securities Co., Ltd. | State-owned Legal Person | 31,194,295 | 1.10 | 31,194,295 | None | 0 | | China International Capital Corporation Limited | State-owned Legal Person | 30,045,105 | 1.06 | 30,035,650 | None | 0 | [Top 10 Shareholders with Unrestricted Shares](index=6&type=section&id=%E5%89%8D10%E5%90%8D%E7%84%A1%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E6%9D%B1%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) HKSCC Nominees Limited holds the largest number of unrestricted circulating shares, totaling 442,491,790 shares, primarily owned by non-registered holders of the company's H-shares | Shareholder Name | Number of Unrestricted Circulating Shares Held | Type of Share | Type and Quantity of Shares | | :--- | :--- | :--- | :--- | | HKSCC Nominees Limited | 442,491,790 | Overseas Listed Foreign Shares | 442,491,790 | | Hong Kong Securities Clearing Company Limited | 16,421,386 | RMB Common Shares | 16,421,386 | | China Construction Bank Corporation - Cathay CSI All Share Securities Company ETF | 12,178,613 | RMB Common Shares | 12,178,613 | | Industrial Bank Co., Ltd. - Southern Financial Theme Flexible Allocation Mixed Securities Investment Fund | 11,445,961 | RMB Common Shares | 11,445,961 | | China Construction Bank Corporation - Huabao CSI All Share Securities Company ETF | 10,913,862 | RMB Common Shares | 10,913,862 | | Industrial and Commercial Bank of China Limited - Huaan Media Internet Mixed Securities Investment Fund | 10,523,801 | RMB Common Shares | 10,523,801 | | China Construction Bank Corporation - Huaan Shanghai-Hong Kong-Shenzhen Extended Growth Flexible Allocation Mixed Securities Investment Fund | 6,777,700 | RMB Common Shares | 6,777,700 | | Agricultural Bank of China Limited - Huaan Smart Life Mixed Securities Investment Fund | 6,388,970 | RMB Common Shares | 6,388,970 | | Fan Zhong | 6,151,800 | RMB Common Shares | 6,151,800 | | Wuxi Xinfa Group Co., Ltd. | 5,825,463 | RMB Common Shares | 5,825,463 | - Shares held by HKSCC Nominees Limited are owned by non-registered holders of the company's H-shares[14](index=14&type=chunk) - Shares held by Hong Kong Securities Clearing Company Limited are the company's A-shares held by Shanghai-Hong Kong Stock Connect investors[14](index=14&type=chunk) [Explanation of Related Party Relationships or Concerted Actions Among the Above Shareholders](index=7&type=section&id=%E4%B8%8A%E8%BF%B0%E8%82%A1%E4%B8%9C%E5%85%B3%E8%81%94%E5%85%B3%E7%B3%BB%E6%88%96%E4%B8%80%E8%87%B4%E8%A1%8C%E5%8A%A8%E7%9A%84%E8%AF%B4%E6%98%8E) The company's controlling shareholder, Wuxi Guolian Development (Group) Co., Ltd., directly and indirectly holds a total of 48.60% of the company's shares; no other related party relationships or concerted action arrangements are known - The company's controlling shareholder, Wuxi Guolian Development (Group) Co., Ltd., directly holds **19.21%** of the company's shares and indirectly holds **29.40%** through its controlled subsidiaries, totaling **48.60%** of the company's shares[14](index=14&type=chunk) [Explanation of Participation in Margin Trading, Securities Lending, and Refinancing by Top 10 Shareholders and Top 10 Unrestricted Shareholders (If Applicable)](index=7&type=section&id=%E5%89%8D10%E5%90%8D%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%89%8D10%E5%90%8D%E6%97%A0%E9%99%90%E5%94%AE%E8%82%A1%E4%B8%9C%E5%8F%82%E4%B8%8E%E8%9E%8D%E8%B5%84%E8%9E%8D%E5%88%B8%E5%8F%8A%E8%BD%89%E8%9E%8D%E9%80%9A%E4%B8%9A%E5%8B%99%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E%EF%BC%88%E5%A6%82%E6%9C%89%EF%BC%89) During the reporting period, the participation of the top 10 shareholders and top 10 unrestricted shareholders in margin trading, securities lending, and refinancing was not applicable - Participation of the top 10 shareholders and top 10 unrestricted shareholders in margin trading, securities lending, and refinancing is **not applicable**[14](index=14&type=chunk) [Other Reminders](index=8&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%8F%90%E9%86%92%E4%BA%8B%E9%A0%85) - There is no other significant operating information requiring investor attention during this reporting period[8](index=8&type=chunk) [Quarterly Financial Statements](index=8&type=section&id=%E5%9B%9B%E3%80%81%E5%AD%A3%E5%BA%A6%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Type of Audit Opinion](index=8&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%AF%A9%E8%A8%88%E6%84%8F%E8%A6%8B%E9%A1%9E%E5%9E%8B) The financial statements for this quarter are unaudited - The financial statements for this quarter are **unaudited**[8](index=8&type=chunk) [Financial Statements](index=8&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section details the company's consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2022, reflecting the financial position and operating results at the end of the reporting period [Consolidated Balance Sheet](index=8&type=section&id=%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) | Item | March 31, 2022 (RMB) | December 31, 2021 (RMB) | | :--- | :--- | :--- | | Total Assets | 72,371,982,469.17 | 65,939,237,816.69 | | Total Liabilities | 55,757,974,836.40 | 49,558,169,528.79 | | Total Owners' Equity (or Shareholders' Equity) | 16,614,007,632.77 | 16,381,068,287.90 | | Total Liabilities and Owners' Equity (or Shareholders' Equity) | 72,371,982,469.17 | 65,939,237,816.69 | - As of March 31, 2022, consolidated total assets increased by **9.76%** compared to the end of 2021, and consolidated total liabilities increased by **12.51%**[6](index=6&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) [Consolidated Income Statement](index=11&type=section&id=%E5%90%88%E4%BD%B5%E5%88%A9%E6%BD%A4%E8%A1%A8) | Item | Q1 2022 (RMB) | Q1 2021 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 636,002,769.33 | 470,589,947.35 | | Net Interest Income | 72,019,366.29 | 54,534,088.16 | | Net Fee and Commission Income | 347,197,946.45 | 241,916,588.47 | | Investment Income (Losses indicated by "-") | –71,022,339.02 | 119,042,267.41 | | Gains from Fair Value Changes (Losses indicated by "-") | 283,900,638.58 | 49,882,279.99 | | Total Operating Expenses | 385,518,564.96 | 265,293,656.87 | | Operating Profit (Losses indicated by "-") | 250,484,204.37 | 205,296,290.48 | | Net Profit (Net Losses indicated by "-") | 188,856,677.80 | 157,311,074.79 | | Net Profit Attributable to Parent Company Shareholders | 188,856,677.80 | 157,311,074.79 | | Total Comprehensive Income | 127,848,851.93 | 152,785,866.30 | | Basic Earnings Per Share (RMB/share) | 0.07 | 0.07 | | Diluted Earnings Per Share (RMB/share) | 0.07 | 0.07 | - In Q1 2022, consolidated total operating revenue increased by **35.15%** year-on-year, and consolidated net profit increased by **20.05%** year-on-year[5](index=5&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Consolidated Cash Flow Statement](index=14&type=section&id=%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) | Item | Q1 2022 (RMB) | Q1 2021 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | –5,058,411,560.62 | –204,320,126.71 | | Net Cash Flow from Investing Activities | 2,892,526,172.80 | –525,482,362.88 | | Net Cash Flow from Financing Activities | 1,356,060,421.36 | –1,061,046,455.75 | | Net Increase in Cash and Cash Equivalents | –811,285,263.34 | –1,790,703,065.13 | | Cash and Cash Equivalents at End of Period | 12,514,199,336.17 | 13,870,199,795.59 | - Net cash flow from operating activities expanded from a net outflow of **RMB 204 million** in Q1 2021 to a net outflow of **RMB 5.058 billion** in Q1 2022[21](index=21&type=chunk) - Net cash flow from investing activities shifted from a net outflow of **RMB 525 million** in Q1 2021 to a net inflow of **RMB 2.893 billion** in Q1 2022[22](index=22&type=chunk) [Parent Company Balance Sheet](index=16&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) | Item | March 31, 2022 (RMB) | December 31, 2021 (RMB) | | :--- | :--- | :--- | | Total Assets | 70,966,254,641.05 | 64,623,124,663.83 | | Total Liabilities | 54,538,867,520.23 | 48,554,293,738.99 | | Total Owners' Equity (or Shareholders' Equity) | 16,427,387,120.82 | 16,068,830,924.84 | | Total Liabilities and Owners' Equity (or Shareholders' Equity) | 70,966,254,641.05 | 64,623,124,663.83 | - As of March 31, 2022, parent company total assets increased by **9.81%** compared to the end of 2021, and parent company total liabilities increased by **12.33%**[23](index=23&type=chunk)[24](index=24&type=chunk) [Parent Company Income Statement](index=18&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%BD%A4%E8%A1%A8) | Item | Q1 2022 (RMB) | Q1 2021 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 607,785,529.82 | 339,793,770.03 | | Net Interest Income | 59,064,747.95 | 44,224,638.77 | | Net Fee and Commission Income | 185,253,460.25 | 168,508,661.73 | | Investment Income (Losses indicated by "-") | 61,757,822.36 | 82,281,004.76 | | Gains from Fair Value Changes (Losses indicated by "-") | 297,764,165.58 | 39,915,268.90 | | Total Operating Expenses | 242,818,779.36 | 187,654,139.64 | | Operating Profit (Losses indicated by "-") | 364,966,750.46 | 152,139,630.39 | | Net Profit (Net Losses indicated by "-") | 318,714,076.57 | 117,231,394.74 | | Total Comprehensive Income | 259,897,604.53 | 113,215,100.30 | - In Q1 2022, parent company total operating revenue increased by **78.89%** year-on-year, and net profit increased by **171.87%** year-on-year[25](index=25&type=chunk)[26](index=26&type=chunk) [Parent Company Cash Flow Statement](index=20&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) | Item | Q1 2022 (RMB) | Q1 2021 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | –4,794,295,467.22 | –146,701,667.78 | | Net Cash Flow from Investing Activities | 2,680,023,287.14 | –529,632,976.27 | | Net Cash Flow from Financing Activities | 1,361,091,693.78 | –1,059,206,623.01 | | Net Increase in Cash and Cash Equivalents | –753,289,106.05 | –1,735,395,947.84 | | Cash and Cash Equivalents at End of Period | 11,886,551,106.96 | 13,031,696,081.66 | - Parent company net cash flow from operating activities expanded from a net outflow of **RMB 147 million** in Q1 2021 to a net outflow of **RMB 4.794 billion** in Q1 2022[27](index=27&type=chunk) - Parent company net cash flow from investing activities shifted from a net outflow of **RMB 530 million** in Q1 2021 to a net inflow of **RMB 2.680 billion** in Q1 2022[28](index=28&type=chunk) [First-Time Adoption of New Accounting Standards from 2022 and Adjustments to Financial Statements at the Beginning of the First Adoption Year](index=22&type=section&id=2022%E5%B9%B4%E8%B5%B7%E9%A6%96%E6%AC%A1%E5%9F%B7%E8%A1%8C%E6%96%B0%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E8%AA%BF%E6%95%B4%E9%A6%96%E6%AC%A1%E5%9F%B7%E8%A1%8C%E7%95%B6%E5%B9%B4%E5%B9%B4%E5%88%9D%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%9B%B8%E9%97%9C%E6%83%85%E6%B3%81) - The first-time adoption of new accounting standards and adjustments to the financial statements at the beginning of the first adoption year are **not applicable** for this reporting period[29](index=29&type=chunk) [By Order of the Board](index=22&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) - The company's executive director is Mr. Ge Xiaobo; non-executive directors are Mr. Hua Weirong, Mr. Zhou Weiping, Mr. Liu Hailin, and Mr. Zhang Weigang; independent non-executive directors are Mr. Lu Yuanzhu, Mr. Wu Xingyu, and Mr. Zhu Hehua[29](index=29&type=chunk)

Financial Performance - The company achieved total revenue, net investment income, and other income of RMB 4.23 billion in 2021, representing a year-on-year increase of 57.76%[65]. - Net profit attributable to shareholders reached RMB 888.64 million, up 51.16% compared to the previous year[80]. - Total assets as of December 31, 2021, amounted to RMB 65.94 billion, a 42.66% increase from the previous year[66]. - The company's total liabilities were RMB 49.56 billion, reflecting a 39.11% increase year-on-year[66]. - The weighted average return on equity was 7.27% for 2021, compared to 6.41% in 2020[70]. - The company achieved a significant investment return in equity investment business, outperforming the CSI 300 index and the median level of equity mutual funds during the same period[122]. - The company reported a net profit before tax of RMB 1,173.37 million, an increase from RMB 787.92 million in the previous year[180]. Revenue Breakdown - Brokerage and wealth management business generated revenue of RMB 1.16 billion, a 23.20% increase year-on-year[80]. - Investment banking business revenue reached RMB 591 million, marking a 63.13% growth compared to the previous year[80]. - Asset management and investment business saw revenue of RMB 261 million, a significant increase of 150.87% year-on-year[80]. - Commission and fee income reached RMB 1,676.44 million, an increase of 51.38% compared to the previous year[141]. - Net investment income grew significantly by 105.29%, totaling RMB 1,393.65 million[147]. - The underwriting and sponsorship income surged by 125.83%, amounting to RMB 456.71 million[143]. - The asset management income increased by 95.72%, totaling RMB 142.25 million[143]. Capital Structure - The registered capital of Guolian Securities Co., Ltd. is RMB 2,831,773,168, and the net capital is RMB 14.801 billion[60]. - The company's net capital as of December 31, 2021, was RMB 14.80 billion, up 48.33% from RMB 9.98 billion at the end of 2020[77]. - The debt-to-asset ratio improved to 70.08%, down 1.20 percentage points from the previous year[70]. - Total equity reached RMB 16,381.07 million, reflecting a year-on-year growth of 54.62%[174]. Client and Market Activity - The number of brokerage clients increased to 1.3856 million, up 8.46% compared to the previous year[84]. - The total trading volume of stocks and funds was RMB 27,230.58 billion, representing a year-on-year growth of 27.96%[84]. - Financial product sales amounted to RMB 457.49 billion, with a year-on-year growth of 5.84%[84]. - The number of signed fund advisory clients reached 150,300, with a total asset scale of RMB 10.263 billion[85]. Underwriting and Advisory Services - The company completed 12 equity underwriting projects in 2021, with a total underwriting amount of RMB 13.461 billion, a year-on-year increase of 300.15%[90]. - The bond underwriting amount reached RMB 43.138 billion, with a year-on-year increase of 49.70%[95]. - The company completed 48 financial advisory projects in 2021, with a notable increase in project numbers and business revenue[98]. Future Plans and Strategies - The company aims to expand its asset management services through specialized accounts for clients[39]. - The company plans to enhance retail sales capabilities and explore personalized asset allocation services in 2022[86]. - The company aims to strengthen its asset management capabilities and digital transformation in 2022, focusing on long-term stable product offerings[107]. - The company plans to enhance research capabilities in equity investment and develop multi-strategy investment systems to adapt to different market environments[123]. - The company aims to develop a comprehensive investment and financing solution tailored to the needs of major shareholders and executives of listed companies in 2022[119]. Risk Management and Governance - The company is committed to enhancing its corporate governance in line with the Corporate Governance Code[21]. - The company plans to strengthen the credit risk assessment system for stock pledge projects and enhance risk control for existing businesses in 2022[119]. - The company will continue to improve liquidity management and ensure the safety and controllability of overall liquidity[128]. Asset Management and Investment - The total asset management scale of the company reached RMB 1,024.12 billion in 2021, representing a growth of 169.28% from RMB 380.32 billion in 2020[106]. - The asset management business net income reached RMB 14,604.86 million in 2021, up from RMB 7,798.20 million in 2020, indicating a growth of 87.5%[106]. - The company actively participated in business innovation and optimized its asset structure, leading to substantial growth in financial investment assets[161]. Financial Position and Changes - The total assets of the group amounted to RMB 65,939.24 million, reflecting a growth of 42.66% compared to the end of 2020[125]. - Cash and cash equivalents increased by RMB 690.33 million to RMB 14,168.96 million, a growth of 5.12% compared to RMB 13,478.63 million in 2020[156]. - The financial investment assets increased dramatically by RMB 18,302.02 million to RMB 37,117.70 million, a growth of 97.27% compared to RMB 18,815.68 million in 2020[153]. Market Outlook - The company anticipates that high-quality development will be the main theme of China's economic growth, focusing on sectors like semiconductor chips, biopharmaceuticals, and artificial intelligence[198]. - The company recognizes the potential for increased business opportunities due to the registration-based IPO system, which is expected to accelerate the growth of the capital market[199].

Financial Performance - The company's operating revenue for 2021 was CNY 2,966,631,400.54, representing a 58.11% increase compared to CNY 1,876,340,313.32 in 2020[36]. - The net profit attributable to shareholders of the parent company for 2021 was CNY 888,639,753.44, up 51.16% from CNY 587,871,418.22 in 2020[36]. - The total assets at the end of 2021 reached CNY 65,939,237,816.69, a 42.66% increase from CNY 46,219,949,000.19 in 2020[37]. - The total liabilities at the end of 2021 were CNY 49,558,169,528.79, reflecting a 39.11% increase from CNY 35,625,778,979.10 in 2020[37]. - The basic earnings per share for 2021 was CNY 0.36, an increase of 28.57% compared to CNY 0.28 in 2020[38]. - The weighted average return on equity for 2021 was 7.27%, an increase of 0.86 percentage points from 6.41% in 2020[38]. - The company's net capital at the end of the reporting period was CNY 14,800,608,556.14, up from CNY 9,978,325,325.97 at the end of the previous year[39]. - The liquidity coverage ratio for 2021 was 219.28%, down from 322.37% in the previous year[39]. - The total of trading financial assets at the end of 2021 was CNY 27,710,091,437.19, with a change of CNY 10,755,000,067.20 during the year[44]. - The company achieved a market share of 0.49% in securities brokerage, with a trading volume of RMB 2.723 trillion, a 27.96% increase from 2020[58]. Capital Structure and Shareholder Returns - The registered capital of Guolian Securities increased to RMB 2,831,773,168 at the end of the reporting period, up from RMB 2,378,119,000 at the end of the previous year, representing a growth of approximately 19%[16]. - The company plans to distribute a cash dividend of RMB 1.00 per 10 shares (including tax), pending approval at the shareholders' meeting[5]. - The company completed a non-public offering of 453.65 million A-shares at a price of RMB 11.22 per share, increasing its registered capital from RMB 237.81 million to RMB 283.18 million[25]. - The company issued 475.72 million A-shares at a price of RMB 4.25 per share, raising its registered capital from RMB 190.24 million to RMB 237.81 million[25]. - In 2021, the company distributed cash dividends of RMB 1.20 per 10 shares, totaling RMB 285,374,280.00, based on a total share capital of 2,378,119,000 shares[193]. - For the fiscal year 2021, the company plans to distribute cash dividends of RMB 1.00 per 10 shares, amounting to RMB 283,177,316.80, with retained earnings of RMB 2,265,049,501.30 to be carried forward[195]. Business Operations and Expansion - The company operates a range of services including securities brokerage, investment consulting, and asset management, with a focus on expanding its market presence[16]. - Guolian Securities has obtained new business qualifications in 2021, including the qualification for foreign stock business and the qualification for agreed repurchase securities trading[17]. - The company has a total of 88 securities business departments distributed across 11 provinces, autonomous regions, and municipalities[27]. - The company is focusing on market expansion through the establishment of new business units in key regions[30]. - The company completed 12 equity underwriting projects with a total underwriting amount of RMB 13.461 billion, a 300.15% increase compared to the previous year[62]. - The company plans to enhance retail sales capabilities and explore personalized asset allocation services in 2022[59]. - The investment banking business aims to expand IPO activities and strengthen collaboration with its parent company[64]. - The company plans to enhance its bond sales network and improve sales capabilities in 2022[69]. - The company is transitioning from a channel-based investment bank to an industry-focused investment bank, emphasizing wealth management and active asset management to meet growing client needs[134]. Risk Management - The company has established a comprehensive risk management system, including a four-tier management structure to ensure effective risk management operations[139]. - The company has implemented strict risk control measures and established a risk control indicator system for dynamic monitoring and early warning of various business risks[139]. - The company employs sensitivity analysis and stress testing to maintain risk control indicators within regulatory limits[140]. - The company has established measures to manage liquidity risk, including efficient management of funding sources and maintaining adequate liquidity reserves[151]. - The risk management committee is responsible for overall risk monitoring and management, with the chief risk officer overseeing the implementation of risk management practices[145]. Governance and Compliance - The company has maintained a strong governance structure, with all board members present at the board meeting[4]. - The audit report issued by Deloitte confirmed the accuracy and completeness of the financial statements, providing a standard unqualified opinion[4]. - The company has established a compliance management organization to oversee compliance risks effectively[153]. - The company has implemented measures to monitor and manage reputation risks dynamically, responding to external events and internal behaviors that may affect its brand value[154]. - The company has established a salary system based on job levels, with fixed salaries adjusted according to performance and market standards[188]. Employee and Management - The company employed a total of 2,269 staff, with 1,819 in the parent company and 450 in major subsidiaries[185]. - The professional composition includes 1,259 in brokerage and wealth management, 432 in investment banking, and 116 in asset management[185]. - The total pre-tax remuneration for the board members and senior management during the reporting period amounted to CNY 2,088.01 million[164]. - The company has a comprehensive employee welfare system, including paid leave and health check-ups, in compliance with national regulations[188]. - The company has implemented a training program that includes 24 business seminars to enhance employee skills and support business needs[190].

Financial Performance - The company's operating revenue for Q3 2021 was ¥923,736,256.56, representing a 70.14% increase compared to the same period last year[4] - The net profit attributable to shareholders for Q3 2021 was ¥277,904,418.51, reflecting a 101.51% increase year-over-year[4] - The net profit excluding non-recurring gains and losses for Q3 2021 was ¥278,399,864.87, up 101.41% year-over-year[4] - Net profit for Q3 2021 reached CNY 656.90 million, compared to CNY 459.16 million in Q3 2020, representing a year-over-year increase of 43.1%[16] - The company reported a total comprehensive income of CNY 764.38 million for Q3 2021, up from CNY 445.67 million in the same period last year, indicating a growth of 71.5%[16] Assets and Liabilities - The total assets at the end of the reporting period reached ¥64,712,605,501.54, a 40.01% increase from the end of the previous year[5] - The company's total liabilities amounted to ¥48.66 billion, up from ¥35.63 billion year-over-year, indicating a rise of about 36.5%[14] - As of September 30, 2021, the total assets of the company reached ¥64.71 billion, an increase from ¥46.22 billion in the previous year, representing a growth of approximately 39.9%[13][14] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 98,072, with the largest shareholder holding 22.87% of the shares[8] - The number of shareholders as of September 30, 2021, was 98,072, with 97,967 being A-share shareholders[11] - The controlling shareholder's stake was diluted from 57.87% to 48.60% following the issuance of new shares[11] Earnings and Returns - The basic and diluted earnings per share for Q3 2021 were both ¥0.12, a 100% increase compared to the previous quarter[5] - Basic and diluted earnings per share for Q3 2021 were CNY 0.28, up from CNY 0.23 in Q3 2020, reflecting a growth of 21.7%[16] - The weighted average return on equity for Q3 2021 was 2.56%, an increase of 1.15 percentage points from the previous quarter[5] - The total equity attributable to shareholders at the end of the reporting period was ¥16,054,647,143.85, a 51.54% increase from the previous year[5] - The company’s equity attributable to shareholders reached ¥16.05 billion, up from ¥10.59 billion year-over-year, representing a growth of about 51.5%[14] Cash Flow - The net cash flow from operating activities for the year-to-date was -¥4,637,043,605.38, indicating a decrease in cash flow[5] - Cash flow from operating activities for the first nine months of 2021 was negative at CNY -4.64 billion, worsening from CNY -2.72 billion in the same period of 2020[17] - The company generated CNY 18.53 billion in cash inflows from financing activities in the first nine months of 2021, compared to CNY 13.90 billion in the same period of 2020, marking a rise of 33.5%[17] - The company reported a net increase in cash from financing activities of CNY 9.93 billion for Q3 2021, compared to CNY 5.99 billion in Q3 2020, indicating a strong financing position[18] - The company experienced a foreign exchange loss of CNY -495,372.17 in Q3 2021, contrasting with a gain of CNY 4.76 million in Q3 2020, highlighting the impact of currency fluctuations on cash flow[18] Investment Income - The company experienced an increase in investment income, contributing to the rise in operating revenue[7] - The company reported a net investment income of ¥923.49 million for the first three quarters of 2021, significantly higher than ¥429.68 million in the previous year, marking an increase of approximately 115.5%[15] Operating Expenses - Total operating expenses for Q3 2021 were approximately CNY 1.18 billion, an increase from CNY 731.55 million in Q3 2020, reflecting a growth of 61.5%[16] - Net interest income for the first three quarters of 2021 was ¥161.63 million, down from ¥238.36 million in 2020, a decrease of about 32.2%[15] Cash and Cash Equivalents - The company’s cash and cash equivalents stood at ¥11.89 billion, compared to ¥10.73 billion in the previous year, an increase of approximately 10.8%[13] - Cash and cash equivalents at the end of Q3 2021 totaled CNY 15.77 billion, an increase from CNY 14.06 billion at the end of Q3 2020, showing a growth of 12.1%[18]