Group 1: Market Developments - Hong Kong Stock Exchange will lower the minimum price fluctuation for stocks starting August 4, 2025, following successful market rehearsals and regulatory approvals [1] - The Hang Seng Index's ADR closed at 24,987.99 points, down 6.15 points or 0.02% [3] Group 2: Index Adjustments - The Hang Seng Index announced changes to the calculation method of the Hang Seng Hong Kong Stock Connect Innovative Drug Selection Index, effective from the index review on June 30, 2025 [2] Group 3: Company Earnings - Cathay Pacific reported a 23.3% year-on-year increase in passenger numbers, carrying approximately 2.9 million passengers in June 2025 [8] - China Longgong expects a significant increase in net profit for the first half of 2025, estimated between RMB 590 million and RMB 665 million, representing a year-on-year increase of 29% to 45% [11] - Meitu Company anticipates a 65% to 72% year-on-year growth in adjusted net profit for the first half of 2025 [10] - Hengtou Securities expects a net profit of approximately RMB 239 million for the first half of 2025, a significant increase from RMB 53.87 million in the same period last year [14] - Huiri Group forecasts a consolidated profit of approximately HKD 250 million for the first half of 2025, up from HKD 37 million in the previous year [15] - Harbin Electric anticipates a net profit of approximately RMB 1.02 billion for the first half of 2025, a substantial increase from RMB 523 million in the same period last year [21] Group 4: Strategic Initiatives - Multiple departments released implementation details for cross-border asset management pilot business in Hainan Free Trade Port, allowing foreign investors to invest in various financial products [6] - Dongyangguang Jiangsu Pharmaceutical and Dongyangguang Pharmaceutical's merger agreement was approved by shareholders, with the new entity expected to be listed on August 7, 2025 [13] - Global New Materials International's acquisition of Merck's surface solutions business was approved by a special shareholder meeting, with a transaction value of EUR 665 million [17] Group 5: Industry Trends - GGII reported that China's power battery installation capacity reached approximately 288.1 GWh in the first half of 2025, a year-on-year increase of 44% [5] - The key product DB-1310 from InnoCare Pharma has received fast track designation from the FDA for treating advanced non-small cell lung cancer [20]

Group 1 - Chinese brokerage stocks in Hong Kong showed strong performance in early trading, with 弘业期货 (03678.HK) rising over 5% [1] - 中泰期货 (01461.HK) increased by more than 4% [1] - Other firms such as 华泰证券 (06886.HK) and 国联民生 (01456.HK) also experienced gains [1]

Core Viewpoint - The "Insurance + Futures" model is an innovative agricultural risk management approach that combines agricultural insurance with the futures market to provide price protection for farmers and agricultural enterprises [1][2] Group 1: Product Overview - The "Insurance + Futures" model aims to transfer market price volatility risks through insurance and hedge the risks on the insurance side via the futures market, thereby reducing income uncertainty for farmers and enhancing the risk resilience of insurance companies [1] - The model has been recognized as a "Typical Inclusive Finance Product" in Shandong, with the cotton target price provincial "Insurance + Futures" model being implemented for five years, covering 489,000 farmers and 2.172 million mu of cotton, with a project amount of 2.756 billion and total compensation of 312 million, resulting in a compensation rate of 129.77% [1] Group 2: Company Initiatives - Since 2016, the company has been a pioneer in the "Insurance + Futures" pilot projects, launching over 650 projects across 22 provinces, covering 13 agricultural products, with a total guaranteed spot scale of 2.21 million tons and project amounts exceeding 12 billion, providing nearly 480 million in compensation to farmers [2] - The company has consistently ranked in the top 10 in the "Insurance + Futures" special evaluation by the China Futures Association, establishing a strong reputation for financial services in agriculture [2] - Future plans include optimizing product pricing and risk hedging for the "Insurance + Futures" model, designing localized price risk product solutions to support farmers' income growth and contribute to rural revitalization [2]

Group 1 - Mr. Zhong Jinlong submitted his resignation to the board on June 13, 2025, due to retirement, resigning from multiple positions including Chairman of the Board and Executive Director [1] - The shareholders' annual meeting approved the appointment of Mr. Lv Xiangyou as a non-employee representative director (Executive Director), effective from June 13, 2025, until the end of the fourth board term [1] - The board appointed Mr. Lv Xiangyou as Chairman of the Board effective from June 13, 2025, until the end of the fourth board term, with the possibility of reappointment [1] Group 2 - Mr. Liang Zhongwei resigned from the position of member of the Board Nomination Committee effective June 13, 2025, while retaining other board and committee positions [2] - The board appointed Ms. Wang Hui as a member of the Board Nomination Committee effective June 13, 2025, until the end of the fourth board term, with the possibility of reappointment [2]

Group 1 - The core viewpoint of the articles highlights the collaboration between Zhongtai Futures and the local government in Lankao County to promote rural revitalization through financial services and party building activities [1][2] - Lankao County, with an area of 1,103 square kilometers and a population of approximately 770,000, has been focusing on developing rural industries, particularly in peanut production, to increase local income [1] - The joint activity included a visit to local特色产业 and discussions on enhancing party organization cohesion and the role of party members in rural development [1] Group 2 - Following the exchange meeting, Zhongtai Futures volunteers conducted a financial knowledge seminar on the "Insurance + Futures" model, explaining its mechanisms and benefits to local farmers and agricultural enterprises [2] - The seminar received positive feedback, with local leaders expressing gratitude for Zhongtai Futures' support and its role in providing effective risk management tools for farmers [2] - The collaboration aims to strengthen the connection between party organizations and inject new momentum into the development of Sanyizhai Township, with a commitment to enhancing financial services for agriculture [2]

Core Viewpoint - Zhongtai Futures reported a significant decline in both revenue and net profit for the fiscal year 2024, indicating challenges in its operational performance [2]. Financial Performance - The company achieved total revenue of 1.851 billion yuan, a year-on-year decrease of 14.03% [2]. - The net profit attributable to shareholders was 4.5298 million yuan, down 96.61% year-on-year [2]. - The net cash flow from operating activities was 1.883 billion yuan, a decline of 34.02% compared to the previous year [2]. - Basic earnings per share were 0.0045 yuan, with a weighted average return on equity of 0.18%, down 5.13 percentage points from the previous year [2][24]. Valuation Metrics - As of April 30, the company's price-to-earnings (P/E) ratio (TTM) was approximately 101.39 times, while the price-to-book (P/B) ratio (TTM) was about 0.18 times, and the price-to-sales (P/S) ratio (TTM) was around 0.25 times [2]. Revenue Composition - In 2024, the revenue composition included 1.5714 billion yuan from brokerage services, 1.1714 billion yuan from risk management services, and 0.005 million yuan from asset management services [18][20]. Cash Flow Analysis - The net cash flow from financing activities was 49.8729 million yuan, an increase of 290 million yuan year-on-year, while the net cash flow from investment activities was -19.5568 million yuan, slightly improved from -21.3083 million yuan in the previous year [26]. Asset and Liability Changes - As of the end of 2024, cash and cash equivalents increased by 10.28%, but their proportion of total assets decreased by 0.99 percentage points [31]. - Short-term borrowings increased by 412.13%, raising their proportion of total assets by 0.25 percentage points, while accounts payable and notes payable decreased by 91.37%, reducing their proportion by 0.25 percentage points [34].

Financial Performance - The company reported a total revenue of HKD 1.2 billion for the fiscal year 2024, representing a 15% increase compared to the previous year[3]. - The company reported a significant increase in revenue, reaching RMB 40.36 million, up from RMB 20 million in the previous period, indicating a growth of 101.8%[20]. - The company's operating revenue for 2024 was RMB 185,118 million, a decrease of 14.03% compared to RMB 215,323 million in 2023[55]. - Total profit for 2024 was RMB 829 million, down 95.43% from RMB 18,143 million in 2023[55]. - Net profit attributable to shareholders for 2024 was RMB 453 million, a decline of 96.61% from RMB 13,372 million in 2023[55]. - Basic earnings per share for 2024 decreased to RMB 0.005, a decline of 96.61% compared to RMB 0.134 in 2023[57]. - The total comprehensive income attributable to the parent company was RMB 504 million, down from RMB 13,404 million in the previous year[104]. - The group reported a financial asset loss of RMB 2,858 million, a significant decrease of 174.19% compared to a profit of RMB 3,853 million in 2023[112]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2026[3]. - A strategic acquisition of a local competitor was completed for HKD 300 million, expected to enhance market capabilities[3]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic investments and partnerships[20]. - The company has established multiple branches across various cities, enhancing its market presence and operational reach[29]. - The company’s operational strategy includes market expansion through new branch openings and service diversification[37]. Risk Management - The company is highly sensitive to domestic and international economic conditions, with potential risks including market risk, liquidity risk, credit risk, operational risk, and compliance risk[11]. - The company has implemented measures to mitigate risks by optimizing organizational structure and establishing comprehensive systems[11]. - The company aims to enhance risk management quality and strengthen compliance and risk control management[68]. - The company has established a systematic investment management mechanism to enhance financial market analysis and requires due diligence before new investment projects[161]. - A comprehensive risk management system is established, covering all departments and subsidiaries, to identify, assess, monitor, and report risks[156]. Employee Development and Training - Employee training programs were expanded, with a 40% increase in participation rates compared to the previous year[3]. - The company emphasized the importance of attracting and retaining talent through competitive compensation and comprehensive training programs[140]. - The company aims to enhance its brokerage business transformation and improve service capabilities through a comprehensive training program[94]. Awards and Recognition - The company received several industry awards, including "Best Futures Company" for the third consecutive year[3]. - The company received multiple awards in 2024, including "Best Futures Company" and "Best Financial Futures Service Award" at the 17th China Best Futures Operating Institution Awards[45]. - The company was recognized for its outstanding performance in anti-money laundering efforts in Shandong Province[49]. Financial Position - Total assets as of December 31, 2024, were RMB 3,375,714 million, an increase of 12.05% from RMB 3,012,639 million in 2023[56]. - Total liabilities as of December 31, 2024, were RMB 3,120,584 million, up 13.20% from RMB 2,756,610 million in 2023[56]. - The company's equity attributable to shareholders was RMB 255,130 million as of December 31, 2024, a slight decrease of 0.35% from RMB 256,029 million in 2023[56]. - The debt-to-asset ratio improved to 41.87% in 2024 from 45.48% in 2023, a reduction of 3.61 percentage points[57]. Social Responsibility - The company has actively engaged in rural revitalization projects, providing over RMB 2 billion in risk protection through 170 projects nationwide[65]. - The company signed "pairing assistance agreements" with 26 rural revitalization areas, launching over 170 "insurance + futures" projects, covering 10 varieties including pigs, corn, and soybean meal, with an insurance coverage amount of approximately RMB 2.135 billion[189]. - The company has been recognized with several awards for its contributions to rural revitalization and financial innovation in 2023[188]. Governance and Compliance - The company has a dedicated investor relations team to facilitate communication and transparency with stakeholders[17]. - The company is committed to adhering to regulatory requirements and maintaining compliance to safeguard its operations[11]. - The company has established a net capital risk assessment and monitoring system to continuously monitor regulatory indicators related to net capital[164]. - The company has a comprehensive compliance management system with a Chief Risk Officer responsible for risk management and internal control compliance[166].

Financial Performance - Zhongtai Futures reported a comprehensive annual performance for the year ending December 31, 2024, with audited figures compared to the same period in 2023[2]. - Revenue for 2024 decreased to RMB 185,118 million, a decline of 14.03% compared to RMB 215,323 million in 2023[72]. - Total profit for 2024 was RMB 829 million, down 95.43% from RMB 18,143 million in 2023[72]. - Net profit attributable to shareholders for 2024 was RMB 453 million, a decrease of 96.61% from RMB 13,372 million in 2023[72]. - Total assets increased to RMB 3,375,714 million, reflecting a growth of 12.05% from RMB 3,012,639 million in 2023[73]. - Total liabilities rose to RMB 3,120,584 million, an increase of 13.20% compared to RMB 2,756,610 million in 2023[73]. - Basic earnings per share for 2024 dropped to RMB 0.005, a decline of 96.61% from RMB 0.134 in 2023[75]. - The weighted average return on equity for 2024 was 0.18%, down 5.15 percentage points from 5.33% in 2023[75]. - The debt-to-asset ratio improved to 41.87%, a decrease of 3.61 percentage points from 45.48% in 2023[75]. Capital Structure and Investments - The company reported a registered capital increase to RMB 3,082 million as of June 21, 2004, following multiple rounds of investment[25]. - The registered capital of the company increased to RMB 5,000 million after the restructuring and capital increase on September 13, 2006[26]. - The registered capital of the company reached RMB 20,000 million following a capital increase of RMB 15,000 million on August 22, 2007[28]. - The registered capital further increased to RMB 40,362.38 million after additional capital injections in 2010[29]. - As of June 30, 2011, the registered capital was RMB 52,000 million after a capital increase of RMB 11,430.28 million[32]. - The registered capital was raised to RMB 64,000 million following a capital increase on September 26, 2012[32]. - The registered capital increased to RMB 100,190 million as of September 17, 2015, with a shareholding structure detailed[34]. Market Position and Operations - The company has a significant presence in the futures market, with operations in various Chinese futures exchanges[17]. - The company has a strategic focus on market expansion and product development to enhance its competitive position[17]. - The company operates a total of 32 futures branches as of the end of the reporting period[41]. - The newly established Shenzhen Futian branch commenced operations on March 21, 2024[49]. - The company reported a significant expansion in its branch network, including new locations in Zhengzhou and Baoding set to open in 2024[49]. - The company has a presence in major cities such as Shanghai, Beijing, and Guangzhou, enhancing its market reach[41][44]. Risk Management - The company has implemented measures to mitigate risks, including optimizing organizational structure and establishing comprehensive systems[17]. - The company faces various risks including market risk, credit risk, liquidity risk, operational risk, and compliance risk[196]. - Market risk primarily includes equity asset price risk, commodity futures price risk, options pricing risk, hedging risk, and interest rate risk[197]. - Credit risk mainly involves default risk and delivery risk[197]. - The company has established a comprehensive risk management framework covering all departments and subsidiaries[200]. - The company aims to enhance risk management quality and strengthen compliance and risk control management to solidify its competitive advantages[88]. Corporate Governance and Social Responsibility - The company is committed to fulfilling its social responsibilities and maintaining good corporate governance practices[7]. - Continuous optimization of corporate governance structure to enhance governance capabilities[199]. - The organizational structure includes a board of directors, supervisory board, and management team, ensuring compliance with relevant laws and regulations[38]. Employee and Training Initiatives - There will be a focus on employee structure, compensation, and training to improve workforce capabilities[6]. - The company has a total of 758 employees, with 41.16% in marketing roles[37]. - Employee training programs have been enhanced, focusing on various skills and compliance training to improve overall workforce capabilities[181]. - The company has implemented a competitive compensation system based on market levels and performance evaluations to attract and retain talent[180]. Technological Advancements - The company aims to enhance its information technology infrastructure to support operational efficiency[6]. - The company is committed to technological advancements in financial services through its fintech management headquarters[41]. - The company is focused on digital transformation, enhancing its marketing service system and data governance through the development of various proprietary systems[121]. Awards and Recognition - In 2024, the company received multiple awards including "Best Futures Company" and "Best Financial Futures Service Award" at the 17th China Best Futures Operating Institution selection[61]. - The company was recognized for its outstanding performance in market-making business by the Shanghai Futures Exchange in 2023[62]. Financial Data and Reporting - The company reported its financial data according to the accounting standards issued by the Ministry of Finance of China[70]. - The company's total operating revenue for the reporting period was RMB 1,851.18 million, a decrease of 14.03% compared to RMB 2,153.23 million in 2023[130]. - Net profit attributable to shareholders was RMB 4.53 million, a significant decline of 96.61% from RMB 133.72 million in 2023[130]. - Total assets increased by 12.05% to RMB 33,757 million from RMB 30,126 million at the end of 2023[131]. - Total liabilities rose by 13.20% to RMB 31,206 million compared to RMB 27,566 million at the end of 2023[131].

[Financial Summary](index=6&type=section&id=財務概要) [Financial and Performance Overview](index=6&type=section&id=財務概要) During the reporting period, the Group's operating revenue slightly increased by 1.19%, but net profit attributable to company shareholders plummeted by 99.12% year-on-year, primarily due to market fluctuations, while net cash flow from operating activities significantly grew by 482.12% 2024 H1 Key Operating Performance (Consolidated) | Indicator | Jan-Jun 2024 (RMB 10,000) | Jan-Jun 2023 (RMB 10,000) | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 83,320 | 82,338 | 1.19% | | **Total Profit** | 182 | 9,387 | -98.06% | | **Net Profit (Attributable to Company Shareholders)** | 59 | 6,813 | -99.12% | | **Basic Earnings Per Share (RMB/share)** | 0.0006 | 0.0680 | -99.12% | | **Net Cash Flow from Operating Activities** | 179,713 | 30,872 | 482.12% | June 30, 2024 Key Balance Sheet Indicators (Consolidated) | Indicator | June 30, 2024 (RMB 10,000) | Dec 31, 2023 (RMB 10,000) | Change from Year-End | | :--- | :--- | :--- | :--- | | **Total Assets** | 3,369,944 | 3,012,639 | 11.86% | | **Total Liabilities** | 3,115,242 | 2,756,610 | 13.01% | | **Equity Attributable to Company Shareholders** | 254,702 | 256,029 | -0.52% | | **Net Assets Per Share Attributable to Company Shareholders (RMB/share)** | 2.54 | 2.56 | -0.52% | June 30, 2024 Net Capital and Related Risk Control Indicators | Indicator Name | June 30, 2024 | Regulatory Standard | | :--- | :--- | :--- | | **Net Capital (RMB 10,000)** | 159,947.18 | ≥ 3,000.00 | | **Net Capital to Risk Capital Reserve Ratio** | 191.41% | ≥ 100.00% | | **Net Capital to Net Assets Ratio** | 61.67% | ≥ 20.00% | | **Current Assets to Current Liabilities Ratio** | 597.59% | ≥ 100.00% | | **Liabilities to Net Assets Ratio** | 14.71% | ≤ 150.00% | [Management Discussion and Analysis (MD&A)](index=8&type=section&id=管理層討論與分析) [Macroeconomic Environment Analysis](index=8&type=section&id=一、%20報告期內經濟環境) In the first half of 2024, despite a complex and severe external environment, China's domestic economy continued its recovery and improvement, with GDP growing by 5.0% and overall stability in employment, prices, and international balance of payments - In the first half of 2024, China's Gross Domestic Product (GDP) grew by **5.0%** year-on-year, with overall stable economic operation[12](index=12&type=chunk) - The trend of industrial transformation and upgrading is evident, with an increased proportion of high-tech manufacturing value added, and new product output such as new energy vehicles and service robots maintaining double-digit growth[13](index=13&type=chunk) - Despite internal and external challenges, China's economic performance remains strong among major global economies, expected to maintain a leading growth rate in the first half, continuing to be an important engine for world economic growth[14](index=14&type=chunk) [Futures Market Conditions Analysis](index=10&type=section&id=二、%20報告期內期貨市場狀況) In the first half of 2024, national futures market trading volume decreased by 12.43% year-on-year, but trading value increased by 7.40%, driven primarily by active trading in precious metals, non-ferrous metals, and financial futures 2024 H1 National Futures Market Trading Overview | Indicator | Scale | YoY Change | | :--- | :--- | :--- | | **Cumulative Trading Volume (Unilateral)** | Approx. 3.46 billion lots | -12.43% | | **Cumulative Trading Value** | Approx. RMB 281.51 trillion | +7.40% | - The increase in trading value was primarily driven by significant growth in trading of precious metals, non-ferrous metals, treasury bonds, and stock index futures, with CSI 500 and CSI 1000 stock index futures cumulative trading values increasing by **23.26%** and **139.12%** year-on-year, respectively[16](index=16&type=chunk) - At the regulatory level, the State Council issued "Several Opinions on Strengthening Regulation, Preventing Risks, and Promoting High-Quality Development of the Capital Market," further improving the legal framework and self-regulatory rules system of the futures market[17](index=17&type=chunk)[18](index=18&type=chunk) [Overall Operating Performance](index=12&type=section&id=三、%20總體經營情況) During the reporting period, the Group's operating revenue was RMB 833 million, a 1.19% increase year-on-year, but net profit attributable to company shareholders was only RMB 0.59 million, a significant 99.12% decrease year-on-year, primarily due to a temporary loss in a subsidiary's equity option business 2024 H1 Operating Performance Summary | Indicator | Amount (RMB 10,000) | YoY Change | | :--- | :--- | :--- | | **Operating Revenue** | 83,320 | +1.19% | | **Net Profit Attributable to Parent Company** | 59 | -99.12% | - The significant decrease in net profit attributable to the parent company was primarily due to a temporary loss incurred by the equity option business of subsidiary Zhongtai Huirong Capital, resulting from significant fluctuations in China's A-share market in the first half of 2024[19](index=19&type=chunk) June 30, 2024 Asset and Liability Status | Indicator | Amount (RMB billion) | Change from 2023 Year-End | | :--- | :--- | :--- | | **Total Assets** | 336.99 | +11.86% | | **Total Liabilities** | 311.52 | +13.01% | | **Equity Attributable to Parent Company Shareholders** | 25.47 | -0.52% | [Main Business Analysis](index=13&type=section&id=四、%20主要業務情況分析) The Group's businesses include futures brokerage, investment advisory, asset management, and risk management, with a focus on core operations, deepening brokerage business transformation, and significant growth in client equity and trading volume [Futures Brokerage Business](index=13&type=section&id=（一）期貨經紀業務) By strengthening new client development, optimizing client service systems, and deepening the "Research+" model, the brokerage business achieved high-quality development, with client equity and cumulative trading volume and value significantly increasing Futures Brokerage Business Core Indicators (Reporting Period) | Indicator | As of June 30, 2024 / During Reporting Period | Change from 2023 Year-End / Prior Period | | :--- | :--- | :--- | | **Client Equity at Period End** | RMB 29.819 billion | +11.78% | | **Cumulative Trading Volume** | 109 million lots | +6.86% | | **Cumulative Trading Value** | RMB 10.19 trillion | +36.23% | - The company achieved significant year-on-year growth in average daily new client numbers and average daily new client equity by optimizing new client incentive policies[21](index=21&type=chunk) [Futures Investment Advisory Business](index=14&type=section&id=（二）期貨交易諮詢業務) During the reporting period, the Group continuously improved its trading advisory service level by optimizing assessment mechanisms, enhancing research product quality, and strengthening business synergy to meet client needs - Continuously improving research product quality, enriching presentation formats, and advancing the revision and upgrade of the mobile APP and research report management system to enhance service quality[22](index=22&type=chunk) [Futures Asset Management Business](index=14&type=section&id=（三）期貨資產管理業務) The company continues to advance new product research and development and reserves, diversify its product lines, and optimize internal control systems and information system construction to improve business efficiency and management levels - Key work focuses include new product R&D and reserves, diversified product line layout, optimization of internal control systems, and strengthening information system construction[23](index=23&type=chunk) [Risk Management Business](index=14&type=section&id=（四）風險管理業務) Conducted through subsidiary Zhongtai Huirong Capital, this business includes OTC derivatives, market making, and bulk commodity futures and spot trading, with significant growth in OTC derivatives and active participation in "Insurance + Futures" projects - OTC derivatives business accumulated new notional principal of **RMB 65.93 billion**, of which commodity-related accounted for **RMB 65.034 billion**[24](index=24&type=chunk) - Holds market-making qualifications for **23** futures and options varieties across **5** futures exchanges[24](index=24&type=chunk) - Conducted **119** "Insurance + Futures" projects in **11** provinces and cities, involving **5** varieties such as live hogs and corn, with project insurance coverage amounting to **RMB 1.049 billion**[25](index=25&type=chunk) [Information Technology Construction](index=15&type=section&id=五、%20信息技術建設) During the reporting period, the company continuously strengthened financial technology governance, focusing on digital transformation to build a full-process client service system, marketing service system, and internal management operations - Core initiatives include building a "full-process companion client service system" and advancing the development of proprietary systems such as WeChat Work, mobile APP, and investment research systems[26](index=26&type=chunk) - Continuously advancing big data platform construction, strengthening data governance and analysis, and gradually achieving digital transformation of internal management[26](index=26&type=chunk) - Enhanced independent R&D capabilities, with multiple systems such as OTC options business management, futures and spot risk control management, and comprehensive risk management platforms successively launched or iterated, promoting the company's digital transformation[26](index=26&type=chunk) [H2 Development Plan](index=16&type=section&id=六、%20下半年發展計劃) In the second half of 2024, the company plans to accelerate the transformation of its brokerage and research businesses, enhance client service capabilities to expand market share, and prudently manage proprietary investments for stable returns - Accelerate the transformation of the brokerage business towards professional services to increase market share[27](index=27&type=chunk) - Solidly manage proprietary capital investments with the goal of pursuing stable absolute returns[27](index=27&type=chunk) - Enhance the operating quality and revenue generation capability of the risk management business[27](index=27&type=chunk) [Liquidity, Financial Resources, and Capital Structure](index=16&type=section&id=七、%20流%20動資金、財務資源和資本結構) As of the end of the reporting period, equity attributable to company shareholders was RMB 2.547 billion, a slight decrease of 0.52% from the end of 2023, primarily due to losses in options business, while asset quality and liquidity remained strong - Equity attributable to the company's shareholders was **RMB 2.547 billion**, a **0.52%** decrease from the end of 2023, primarily due to temporary losses incurred by Zhongtai Huirong Capital's equity option business[28](index=28&type=chunk) - The Group's asset-liability ratio (after deducting client margins, etc.) was **44.18%**, a decrease of **1.30** percentage points from the end of 2023[29](index=29&type=chunk) - The Group's operating leverage (adjusted total assets/equity attributable to parent company shareholders) was **1.79** times, a decrease from **1.83** times at the end of 2023[29](index=29&type=chunk) [Significant Financing Activities](index=17&type=section&id=八、%20本集團重大融資情況) During the reporting period, the Group did not undertake any significant financing activities - During the reporting period, the Group had no significant financing activities[31](index=31&type=chunk) [Significant Investment Activities](index=17&type=section&id=九、%20本集團重大投資情況) During the reporting period, the Group did not make any significant investments, nor does it have any future plans for significant investments or acquisitions of major capital assets - During the reporting period, the Group made no significant investments[32](index=32&type=chunk) [Significant Asset Disposals, Guarantees, and Contingent Liabilities](index=17&type=section&id=十、%20重大資產收購、出售及對外擔保、抵押、質押和重大或有負債) During the reporting period, the Group had no significant asset acquisitions, disposals, corporate mergers, major external guarantees, or significant contingent liabilities, with the only pledge being inventory pledged to a futures exchange - During the reporting period, the Group had no significant asset acquisitions, disposals, mergers, major external guarantees, or contingent liabilities[33](index=33&type=chunk) - As of June 30, 2024, inventory with a book value of **RMB 30.8584 million** was pledged to a futures exchange as trading margin[33](index=33&type=chunk) [Employees, Remuneration, and Training](index=18&type=section&id=十一、%20僱員、薪酬政策及培訓情況) As of the end of the reporting period, the Group had 734 employees, with employee costs of approximately RMB 140.28 million, and maintained a competitive, performance-linked remuneration system while focusing on talent development through various training programs Employee Overview | Indicator | As of June 30, 2024 / During Reporting Period | | :--- | :--- | | **Total Employees** | 734 | | **Employee Costs** | Approx. RMB 140.28 million | | **Proportion with Bachelor's Degree or Higher** | Over 90% | | **Proportion of Employees Under 40** | 78% | - The remuneration system comprises basic salary, performance-based salary, bonuses, allowances, business commissions, and insurance benefits, closely linked to performance appraisal results[34](index=34&type=chunk) - During the reporting period, **36** routine training sessions and multiple specialized training programs were organized, covering cultural development, business skills, compliance, and risk control, to support talent development initiatives[35](index=35&type=chunk) [Potential Risks, Uncertainties, and Countermeasures](index=19&type=section&id=十二、%20可能面臨的風險、不確定性及應對措施) The Group faces market, credit, liquidity, operational, and compliance risks, which are managed through a scientific risk management organizational structure, continuous optimization of governance, and specific countermeasures to ensure stable operations - The Group faces major risks including: market risk, credit risk, liquidity risk, operational risk, and compliance risk[36](index=36&type=chunk) - The company has established a risk management organizational structure with the Board of Directors as the highest decision-making body, supported by a Risk Control Committee and an Audit Committee, with the Chief Risk Officer responsible for specific coordination and implementation[37](index=37&type=chunk) - Specific countermeasures have been adopted for major risks, such as: - **Market Risk**: Employing diversified capital management strategies and using quantitative indicators to monitor risk limits[41](index=41&type=chunk) - **Credit Risk**: Establishing a client credit assessment system and conducting risk ratings for futures brokerage clients[42](index=42&type=chunk) - **Liquidity Risk**: Establishing a net capital risk assessment and monitoring system, and conducting stress tests[43](index=43&type=chunk) - **Operational Risk**: Formulating and strictly enforcing written internal control systems and work procedures[44](index=44&type=chunk) - **Compliance Risk**: Establishing a comprehensive compliance management system and organizational structure, and regularly conducting compliance checks and internal audits[44](index=44&type=chunk) [Corporate Governance Report](index=25&type=section&id=企業管治報告) [Corporate Governance Report](index=25&type=section&id=企業管治報告) The company is committed to high-level corporate governance, having established a "Party Committee, Three Boards, and Management Layer" governance structure, and strictly complied with all code provisions of the Corporate Governance Code during the reporting period - The company has established a corporate governance structure comprising a "Party Committee, Three Boards (Shareholders' Meeting, Board of Directors, Supervisory Committee), and Management Layer," with the Party Committee playing a leading role[45](index=45&type=chunk) - During the reporting period, the company strictly complied with all code provisions contained in the Corporate Governance Code[46](index=46&type=chunk) - The Audit Committee, composed of four directors with Mr. Luo Xinhua, an independent non-executive director, as chairman, has reviewed and confirmed the interim results and financial statements for the six months ended June 30, 2024[49](index=49&type=chunk) [Other Information](index=27&type=section&id=其他資料) [Other Information](index=27&type=section&id=其他資料) This section discloses post-reporting period significant events (payment of 2023 final dividend), share capital structure, interim dividend (not distributed), major shareholder holdings, and changes in directors and supervisors - The Board of Directors did not propose an interim dividend plan for the six months ended June 30, 2024[54](index=54&type=chunk) Share Capital Structure (As of June 30, 2024) | Share Class | Number of Shares | % of Total Share Capital | | :--- | :--- | :--- | | **Domestic Shares** | 724,810,000 | 72.34% | | **H Shares** | 277,090,000 | 27.66% | | **Total Share Capital** | 1,001,900,000 | 100.00% | - Among major shareholders, controlling shareholder Zhongtai Securities Co., Ltd. holds **632,176,078** domestic shares, accounting for **63.10%** of the total share capital[57](index=57&type=chunk) - During the reporting period, there were changes in directors: Mr. Liu Qingbin was appointed as an executive director, Ms. Wang Hui was appointed as a non-executive director, and Mr. Hu Kainan and Mr. Liu Feng resigned as non-executive directors[60](index=60&type=chunk) [Financial Statements and Notes](index=30&type=section&id=財務報表) [Review Report](index=30&type=section&id=審閱報告) Shinewing Certified Public Accountants reviewed the company's 2024 interim financial statements and found no matters suggesting that the financial statements were not prepared in accordance with enterprise accounting standards in all material respects, noting that this is a review opinion with a lower level of assurance than an audit opinion - The accounting firm performed the review engagement in accordance with "China Review Standard No. 2101 - Review of Financial Statements," which provides a lower level of assurance than an audit[61](index=61&type=chunk) - The review conclusion states: We have not noted any matters that cause us to believe that the financial statements are not prepared in all material accounting aspects in accordance with enterprise accounting standards, failing to fairly reflect the company's financial position, operating results, and cash flows[61](index=61&type=chunk) [Consolidated Financial Statements](index=31&type=section&id=合併財務報表) This section includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in shareholders' equity as of June 30, 2024, showing total assets increased to RMB 33.70 billion but net profit attributable to the parent company significantly declined to RMB 0.59 million Consolidated Balance Sheet Summary (RMB) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | 33,699,435,292.26 | 30,126,389,234.78 | | **Total Liabilities** | 31,152,415,724.54 | 27,566,098,522.22 | | **Total Equity Attributable to Parent Company Shareholders** | 2,547,019,567.72 | 2,560,290,712.56 | Consolidated Income Statement Summary (RMB) | Item | Jan-Jun 2024 | Jan-Jun 2023 | | :--- | :--- | :--- | | **Operating Revenue** | 833,197,095.33 | 823,380,391.66 | | **Total Profit** | 1,817,230.99 | 93,874,779.20 | | **Net Profit Attributable to Parent Company Shareholders** | 590,868.22 | 68,131,668.24 | Consolidated Cash Flow Statement Summary (RMB) | Item | Jan-Jun 2024 | Jan-Jun 2023 | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 1,797,129,575.34 | 308,721,313.06 | | **Net Cash Flow from Investing Activities** | -16,644,413.41 | 4,331,803.12 | | **Net Cash Flow from Financing Activities** | -6,203,683.10 | 23,436,087.23 | | **Net Increase in Cash and Cash Equivalents** | 1,774,286,000.03 | 336,519,821.78 | [Notes to Financial Statements](index=47&type=section&id=財務報表附註) The notes to the financial statements detail the company's basic information, accounting policies, major financial item breakdowns, related party transactions, financial risks, and fair value measurements, including a change in accounting estimate for electronic equipment depreciation and disclosure of a significant lawsuit involving a subsidiary - The company adjusted the depreciation period for electronic equipment (excluding network equipment and servers) from **3** years to **5** years, effective January 1, 2024, an accounting estimate change applied prospectively, expected to increase net profit attributable to the parent company by **RMB 0.82 million** in Jan-Jun 2024[148](index=148&type=chunk)[149](index=149&type=chunk) - Net fee and commission income was **RMB 160 million**, a year-on-year decrease, with exchange fee rebates and reductions being the main components, totaling **RMB 97 million**[229](index=229&type=chunk) - Investment income was **-RMB 134 million**, primarily due to a loss of **RMB 145 million** from the disposal of financial instruments held for trading[232](index=232&type=chunk) - Fair value change gains were **RMB 92 million**, mainly from fair value changes of financial instruments held for trading[233](index=233&type=chunk) - Disclosed a significant lawsuit: Subsidiary Zhongtai Huirong Capital is involved in a dispute with a counterparty regarding an electrolytic aluminum repurchase business, involving goods worth **RMB 50.33 million**, with the case prosecuted by the procuratorate and an impairment provision of **RMB 7.57 million** recognized as of the reporting period end[288](index=288&type=chunk)

Financial Performance - The unaudited consolidated interim results for the six months ended June 30, 2024, were announced, with a comparison to the same period in 2023[1]. - Operating revenue for the first half of 2024 was RMB 83,320 million, a slight increase of 1.19% compared to RMB 82,338 million in the same period of 2023[8]. - Total profit for the first half of 2024 decreased significantly to RMB 182 million, down 98.06% from RMB 9,387 million in the previous year[8]. - Net profit attributable to shareholders was RMB 59 million, representing a 99.12% decline from RMB 6,813 million year-on-year[8]. - The company reported a basic earnings per share of RMB 0.0006, down 99.12% from RMB 0.0680 in the same period last year[8]. - The company reported a net loss from investments of RMB 133,535,498.57, compared to a loss of RMB 20,068,492.33 in the previous year[68]. - The company's total comprehensive income attributable to shareholders for the first half of 2024 was RMB 755,455.16, compared to RMB 68,858,969.30 in the previous year[69]. - The net profit for the first half of 2024 was RMB 590,868.22, a decrease of 13.5% from RMB 68,131,668.24 in the same period of 2023[68]. Assets and Liabilities - Total assets as of June 30, 2024, reached RMB 3,369,944 million, reflecting an 11.86% increase from RMB 3,012,639 million at the end of 2023[9]. - Total liabilities increased to RMB 3,115,242 million, marking a 13.01% rise from RMB 2,756,610 million at the end of 2023[9]. - The company's equity attributable to shareholders was RMB 254,702 million, a slight decrease of 0.52% from RMB 256,029 million at the end of 2023[9]. - The asset-liability ratio decreased by 1.30 percentage points to 44.18% from 45.48% at the end of 2023[19]. - Total liabilities reached RMB 31,152,415,724.54, up from RMB 27,566,098,522.22, indicating an increase of around 12.5%[64]. - The total equity of the company rose to RMB 2,593,675,812.69, an increase of 2.6% from RMB 2,527,750,121.00 at the end of 2023[66]. Cash Flow - The net cash flow from operating activities surged to RMB 179,713 million, an increase of 482.12% compared to RMB 30,872 million in the same period last year[8]. - Cash flow from operating activities generated a net amount of RMB 1,797,129,575.34, significantly higher than RMB 308,721,313.06 in the first half of 2023[73]. - The company reported a total cash inflow from operating activities of RMB 4,870,810,659.85, compared to RMB 2,658,014,693.79 in the same period last year[73]. - The net cash flow from investment activities was negative at RMB -6,789,822.59, an improvement from RMB -867,971.54 in the first half of 2023[76]. - The ending balance of cash and cash equivalents as of June 30, 2024, was RMB 19,867,501,599.07, up from RMB 15,844,009,597.67 at the end of June 2023, reflecting an increase of about 25.7%[76]. Economic Environment - In the first half of 2024, China's GDP reached RMB 61.7 trillion, reflecting a year-on-year growth of 5.0%[12]. - The urban surveyed unemployment rate averaged 5.1% in the first half of 2024, a decrease of 0.2 percentage points compared to the same period last year[12]. - The consumer price index (CPI) rose by 0.1% year-on-year in the first half of 2024, with a 0.3% increase in the second quarter[12]. - The total import and export volume in the first half of 2024 reached RMB 21.2 trillion, marking a historical high for the same period[12]. Risk Management - The company is actively managing risks and uncertainties that may impact its operations and financial performance[2]. - The company faces various risks, including market risk, credit risk, liquidity risk, operational risk, and compliance risk[36]. - A comprehensive risk management structure is in place, with the board of directors overseeing risk management activities[37]. - The company emphasizes the cultivation of risk control awareness among all employees through internal training, enhancing their ability to identify and prevent risks[40]. - The company conducts regular stress tests on risk management indicators to observe the impact of market volatility and macroeconomic changes on cash flow[43]. Corporate Governance - The board of directors has reviewed the interim results, ensuring compliance with the relevant listing rules[1]. - The company has established a "one committee and three layers" corporate governance structure to enhance governance levels and mitigate operational risks[45]. - The company has strictly adhered to the Corporate Governance Code during the reporting period, meeting the majority of the recommended best practice provisions[46]. - The Audit Committee, consisting of four directors, has reviewed and confirmed the company's interim financial results for the six months ending June 30, 2024[49]. - The company has confirmed that all directors and supervisors have complied with the Standard Code regarding securities trading during the reporting period[47]. Future Plans - Future development plans for the second half of 2024 have been outlined, focusing on market expansion and new strategies[2]. - The company aims to enhance customer service capabilities and increase market share in brokerage business in the second half of 2024[27]. - The company plans to optimize risk management business quality and revenue capabilities in the upcoming period[27]. - The company is focusing on digital transformation across its operations, marketing, and management systems to improve efficiency[26]. Employee Management - The total number of employees in the company is 734, with employee costs amounting to approximately RMB 140.28 million during the reporting period[34]. - Over 90% of the employees hold a bachelor's degree or higher, and 78% are under the age of 40[34]. - The company organized 36 training sessions and produced 37 micro-courses to enhance employee skills and knowledge[35]. Investment Activities - The group has significant financing and investment activities, which are detailed in the report[2]. - No significant financing or investment activities occurred during the reporting period, and there are no future plans for major investments or acquisitions[32][33]. - The company has launched 119 "insurance + futures" projects across 11 provinces, with an insurance coverage amount of RMB 1.049 billion[25]. Financial Instruments and Assets - The group classifies financial assets into three categories: 1) financial assets measured at amortized cost; 2) financial assets measured at fair value with changes recognized in other comprehensive income; 3) financial assets measured at fair value with changes recognized in profit or loss[99]. - The company recognizes buy-back financial assets at the actual payment amount and records the trading difference as interest income using the effective interest method during the resale period[109]. - The company has receivables from margin deposits and payables for margin deposits related to clients' futures trading activities[110]. - The company holds long-term equity investments in all subsidiaries and joint ventures, measured at cost in the financial statements[115]. Compliance and Internal Controls - The company has implemented strict internal control systems and workflows across all business lines to mitigate operational risks[43]. - A compliance management system has been established, with a Chief Risk Officer overseeing risk management and internal compliance[44]. - Regular audits are conducted to ensure the legality, compliance, and effectiveness of the company's internal control systems and business processes[44].