Operational Management and Strategy - The company reported significant improvements in operational management capabilities, with asset allocation becoming more rational in 2024[10]. - The company achieved progress in major matters such as capital increases for subsidiaries, indicating a focus on enhancing business collaboration and core competitiveness[10]. - The company plans to develop a five-year strategic plan in 2025, focusing on integrating party building with business and management[11]. - The company aims to enhance brand building and optimize personnel structure while emphasizing talent cultivation to support sustainable development[11]. - The company is committed to actively exploring new business opportunities and improving comprehensive service capabilities for clients[11]. - The company will continue to strengthen its investment banking and wealth management capabilities as part of its strategic initiatives[10]. - The company is focused on high-quality development in the securities industry, aligning with regulatory requirements and enhancing investor confidence[10]. - The company has made advancements in constructing new business models and encouraging innovation to improve brand image[10]. - The company is dedicated to promoting high-quality development across all business lines, with a focus on enhancing long-term core competitiveness[11]. Financial Performance - The company's revenue and other income for 2024 reached RMB 2,786,214, an increase of 10.86% compared to RMB 2,513,314 in 2023[50]. - The pre-tax profit for 2024 was RMB 144,476, showing a significant increase of 766.94% from RMB 16,665 in 2023[50]. - The annual profit attributable to ordinary shareholders for 2024 was RMB 176,283, a 174.82% increase from RMB 64,145 in 2023[50]. - The net cash used in operating activities for 2024 was RMB (1,124,942), a decline of 457.46% compared to RMB (201,798) in 2023[50]. - Basic earnings per share for 2024 were RMB 0.07, representing a 250.00% increase from RMB 0.02 in 2023[50]. - The weighted average return on net assets for 2024 was 2.16%, an increase of 1.36 percentage points from 0.80% in 2023[50]. - The total assets of the group reached RMB 39,981.08 million, an increase of 28.13% compared to RMB 31,202.65 million at the end of 2023[118]. - The total liabilities amounted to RMB 31,274.06 million, reflecting a growth of 35.90% from RMB 23,012.59 million at the end of 2023[118]. - The equity attributable to shareholders increased by 3.01% to RMB 8,295.53 million from RMB 8,053.42 million at the end of 2023[118]. - The net income attributable to shareholders was RMB 176.28 million, a 174.82% increase from RMB 64.15 million in the previous year[125]. Risk Management and Compliance - In 2024, the company emphasized the importance of compliance and risk management, aiming to elevate the overall compliance awareness and risk management consciousness among employees[11]. - The company has established an internal control and risk management system to mitigate various operational risks[19]. - The company has a comprehensive compliance management system to address legal and regulatory risks[19]. - The company faces strategic risks related to macroeconomic changes and capital market fluctuations[19]. - The company aims to strengthen its governance and internal control systems to create greater value for investors[107]. Business Expansion and Investments - The company is highly dependent on the economic and market conditions in China, which may significantly impact its business and financial performance[19]. - The company holds a 52.99% stake in Xinhua Fund Management Co., Ltd.[17]. - The company has various business qualifications, including securities and futures business licenses, and qualifications for online securities business[22]. - The company operates subsidiaries primarily in China, with significant investments in securities and asset management[41]. - The company plans to enhance its brokerage business and diversify its offerings to improve market share and scale in 2025[84]. - The company aims to strengthen its investment advisory services and enhance technology integration to drive wealth management transformation[84]. - The company plans to deepen its financing and securities business capabilities and improve risk management models[91]. - The company aims to enhance its wealth management brand image by providing innovative wealth management services[89]. Asset Management and Securities - The asset management business total scale was RMB 15,812.81 million, with various product types including collective and single asset management plans[104]. - The company managed a total of 45 public funds with a management scale of RMB 55,791 million, up 15.99% year-on-year[106]. - The private equity fund scale reached RMB 2,900 million, with two funds compliant with regulatory requirements[109]. - The proprietary trading business generated revenue of RMB 660.39 million, a growth of 120.04% compared to 2023[113]. - The investment management business revenue was RMB 279.57 million, a decline of 37.85% compared to 2023[103]. - The brokerage and wealth management business generated revenue of RMB 1,651.81 million, up 10.01% from the previous year[82]. Capital Structure and Shareholder Information - The registered capital of the company is RMB 2,604,567,412[23]. - The net capital of the company is RMB 5,903,664,780.64[23]. - The registered capital of 恒泰期貨 was changed to RMB 22,803.03 million on January 24, 2025[43]. - The registered capital of 新華基金 was changed to RMB 62,775.6410 million on March 10, 2025, with the company's holding ratio changing to 52.99%[43]. - The company has a significant shareholder, Tianfeng Securities Co., Ltd., listed on the Shanghai Stock Exchange[20]. - The company completed 2 listing advisory projects and 1 merger and acquisition project in the New Third Board business[100]. Operational Changes and Developments - The company relocated 21 securities business departments during the reporting period[178]. - The company established a new branch in Beijing on May 8, 2024, and obtained a securities and futures business license on July 24, 2024[185]. - The Shandong branch was upgraded from the Jinan Yanzishan West Road Securities Business Department and received its business license on December 19, 2024, and the securities and futures business license on January 3, 2025[185]. - The company completed the registration address change for its subsidiary, Hengtai Capital, on June 7, 2024[187]. - The establishment of the Beijing and Shandong branches is expected to enhance regional management and business expansion capabilities, thereby increasing business revenue[189].

Group 1 - Morgan Fund Management (China) Co., Ltd. has signed fund sales agency agreements with multiple institutions including Guotai Junan Securities, Haitong Securities, E-Hua Buy Fund Sales, and Lead Fund Sales to distribute the Morgan Dual Bond Enhanced Income Bond Fund Class D (Fund Code: 023813) [1] - Investors can conduct subscription, redemption, and regular investment through the aforementioned agencies, with specific procedures and timings determined by the agencies [1] - The announcement includes contact details for each agency for further inquiries [1] Group 2 - Morgan Fund Management (China) Co., Ltd. has added Hengtai Securities as a sales agency for the Morgan Dual Bond Enhanced Income Bond Fund (Class A Code: 000377; Class C Code: 000378; Class D Code: 023813) [3] - Investors can also perform subscription, redemption, and regular investment through Hengtai Securities, with specific procedures governed by Hengtai Securities [3][4] Group 3 - Starting from March 31, 2025, Morgan Fund Management (China) Co., Ltd. will lower the management and custody fees for certain funds and amend related legal documents [5] - The adjustments are made in accordance with relevant laws and fund contracts, and the changes will not adversely affect the interests of fund shareholders [5][6] - Updated fund contracts, custody agreements, and prospectuses will be published on the company's website and the China Securities Regulatory Commission's fund disclosure website [6]

Financial Reporting - The company reported a mid-term financial data for the six months ending June 30, 2024, prepared in accordance with international financial reporting standards [4]. - The board of directors and supervisors confirmed the accuracy and completeness of the report, with no dissenting opinions from any board members [4]. - The report includes a summary of accounting data and financial indicators, which is detailed in section three of the document [2]. - The report indicates that the financial data is presented in Renminbi, with specific attention to the accuracy of the figures reported [4]. - The company has undergone a review by an independent auditor in accordance with the relevant Hong Kong auditing standards [4]. - The document outlines the corporate governance code as per the listing rules, ensuring compliance with regulatory requirements [6]. Financial Performance - Total revenue and other income for the first half of 2024 was RMB 1,169,284, a decrease of 19.27% compared to RMB 1,448,468 in the same period of 2023 [20]. - Profit before tax for the first half of 2024 was RMB 75,098, down 64.42% from RMB 211,055 in the first half of 2023 [20]. - Net profit attributable to ordinary shareholders for the first half of 2024 was RMB 53,872, a decline of 72.12% from RMB 193,196 in the same period of 2023 [20]. - Basic and diluted earnings per share for the first half of 2024 were both RMB 0.0207, down 72.10% from RMB 0.0742 in the first half of 2023 [20]. - The company reported total revenue and other income of RMB 1,169.28 million, a decrease of 19.27% compared to the same period in 2023 [49]. - Net profit attributable to shareholders was RMB 53.87 million, down 72.12% year-on-year, with earnings per share of RMB 0.0207, also down 72.10% [49]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 35,222,614, an increase of 12.88% from RMB 31,202,650 at the end of 2023 [20]. - Total liabilities as of June 30, 2024, were RMB 26,998,934, up 17.32% from RMB 23,012,586 at the end of 2023 [20]. - The debt-to-asset ratio increased to 64.37% from 60.42%, reflecting a rise of 3.95 percentage points [20]. - The net asset value per share attributable to ordinary shareholders was RMB 3.12, a slight increase of 0.97% from RMB 3.09 at the end of 2023 [20]. - Total equity attributable to ordinary shareholders was RMB 8,121,909 thousand, up from RMB 8,053,415 thousand at the end of 2023 [113]. Cash Flow - Cash used in operating activities improved to RMB (129,342) from RMB (722,239), representing an 82.09% increase in cash flow [20]. - The net cash flow from operating activities for the reporting period was RMB -129.34 million, an increase of RMB 592.90 million compared to RMB -722.24 million in the same period of 2023 [53]. - The net cash flow from investing activities was RMB -409.32 million, a decrease of RMB 800.23 million compared to RMB 390.91 million in the same period of 2023 [53]. - The net cash flow from financing activities was RMB 613.99 million, a decrease of RMB 342.11 million compared to RMB 956.10 million in the same period of 2023 [53]. Business Segments - The brokerage and wealth management business generated revenue of RMB 698.13 million, a decline of 11.07% compared to the same period in 2023 [32]. - The company completed 8 bond projects with a total financing scale of approximately RMB 3,509 million, reflecting a decline in the number and amount of underwriting projects compared to the same period last year [39]. - The proprietary trading business generated revenue of RMB 234.06 million, an increase of 62.77% compared to the same period last year [46]. - The asset management business achieved a total scale of RMB 15,645.73 million, with a 41% increase compared to the end of last year [42]. Risk Management - The company actively implements comprehensive risk management standards, focusing on "full coverage, monitorable, measurable, analyzable, and responsive" risk management practices [71]. - The company has established a four-tier risk management system involving the board of directors, management, risk management departments, and business units [73]. - Market risk is managed through limit management, daily monitoring, stress testing, and risk reporting, with specific risk indicators like Value at Risk (VaR) and maximum drawdown [66]. - The company has implemented a reputation risk management team to monitor and respond to potential reputation risks dynamically [70]. Corporate Governance - The company has adopted the "Standard Code" as a code of conduct for securities trading by directors and supervisors, confirming compliance during the reporting period [94]. - The board of directors held 7 meetings during the reporting period, reviewing 36 proposals, indicating active governance and decision-making processes [92]. - The supervisory board convened once during the reporting period, reviewing 7 proposals, ensuring compliance and oversight of company operations [93]. Shareholder Information - As of June 30, 2024, the total issued shares of the company amounted to 2,604,567,412, which includes 2,153,721,412 domestic shares and 450,846,000 H shares [98]. - Huarong Comprehensive Investment holds 21.88% of the company's total issued shares, equivalent to 569,895,304 shares [97]. - The ownership structure indicates significant control by major shareholders, with Financial Street Investment and its affiliates holding a substantial portion of the shares [99]. Legal Matters - The company is involved in ongoing litigation related to the QH Leasing Phase I asset-backed special plan, with claims totaling approximately RMB 530 million [84]. - The company has filed for a retrial regarding a previous court ruling that required it to compensate RMB 10 million plus interest to a plaintiff [81]. - The company has initiated legal proceedings against six clients regarding stock pledge repurchase transaction disputes, with ongoing execution of the cases [85].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之 任 何 損 失 承 擔 任 何 責 任。 恒投證券 HENGTOU SECURITIES （於 中華人民共和國以中文公司名稱「恒泰證券股份有限公司」 註冊成立的股份有限公 司，在香港 以「恒投證券」（中 文） 及「HENGTOU SECURITIES」（英 文）名義開展業務） （「本公司」） （股份代碼：01476） 截 至2024年6月30日止六個月之中期業績公告 本 公 司 董 事 會（「董事會」）謹 此 宣 佈 本 公 司 及 其 附 屬 公 司 截 至2024年6月 30日 止 六 個 月 之 未 經 審 計 中 期 業 績。本 公 告 列 載 本 公 司2024年中期報告 全 文，並 符 合 香 港 聯 合 交 易 所 有 限 公 司 證 券 上 市 規 則 中 有 關 中 期 業 績 初 步 公 告 附 載 的 資 料 之 要 求 及 已 經 本 公 司 審 計 委 ...

Corporate Vision and Strategy - In 2023, Hengtai Securities established a new vision to become a financial service provider covering the entire life cycle and multi-level risk preferences[7]. - Hengtai Securities aims to optimize its business structure and growth model, focusing on long-term stable development rather than short-term speculation[7]. - The company has set a mission to provide professional empowerment, technological support, and connect industry and finance[7]. - Hengtai Securities emphasizes the importance of serving the real economy and maintaining a focus on its core responsibilities[7]. - The company plans to strengthen cross-departmental collaboration and information sharing as part of its long-term strategy[7]. - Hengtai Securities has adopted a new corporate culture aimed at sustainable development and long-term growth[7]. - The company will continue to implement the spirit of the 20th National Congress of the Communist Party of China, focusing on high-quality financial development[7]. Governance and Management - The company reported a significant governance change with Beijing Financial Street Investment Group becoming the actual controller, enhancing management collaboration[7]. - Hengtai Securities is committed to enhancing its internal control management system to improve overall management levels[7]. - The company has completed a three-year planning process to clarify specific paths and measures for business advancement[7]. - The company has a strategic and investment decision-making committee chaired by the chairman[39]. Financial Performance - Total revenue for 2023 was RMB 2,513,314, a decrease of 7.78% compared to RMB 2,725,455 in 2022[61]. - The company reported a pre-tax profit of RMB 16,665, a significant recovery from a loss of RMB 2,008,380 in the previous year, marking a 100.83% increase[61]. - Net profit attributable to ordinary shareholders was RMB 64,145, compared to a loss of RMB 1,286,372 in 2022, representing a 104.99% increase[61]. - The total assets as of December 31, 2023, were RMB 31,202,650, reflecting a slight increase of 0.58% from RMB 31,021,248 in 2022[62]. - Total liabilities increased to RMB 23,012,586, up 0.78% from RMB 22,835,492 in the previous year[62]. - The weighted average return on net assets improved to 0.80% from a negative 14.86% in 2022, an increase of 15.66 percentage points[61]. - Basic earnings per share for 2023 were RMB 0.02, a recovery from a loss of RMB 0.49 in the previous year, marking a 104.08% increase[61]. Risk Management - The company has established an internal control and risk management system to mitigate various operational risks[36]. - The company faces strategic risks related to macroeconomic changes and capital market fluctuations[36]. - The company has a comprehensive risk control framework to monitor risk indicators[36]. - The company has implemented a comprehensive risk management system to control risks associated with new business innovations[176]. - Credit risk management involves internal credit rating systems and thorough due diligence on financing projects[179]. - Market risk is primarily associated with proprietary trading and includes risks from equity securities, fixed income securities, and foreign exchange fluctuations[180]. - Liquidity risk is managed through continuous monitoring of liquidity coverage ratio (LCR) and net stable funding ratio (NSFR), with stress tests conducted at least biannually[182]. - The company has established a compliance management system to mitigate compliance risks, including compliance reviews and training[183]. Business Operations - The company operates under the H-share stock code 01476 on the Hong Kong Stock Exchange[46]. - The company has a diversified organizational structure with multiple departments focusing on various financial services[51]. - The company has established 107 securities business departments across various regions in China as of December 31, 2023[58]. - The company plans to enhance its brokerage business by diversifying services and improving market share, focusing on customer needs and asset preservation[85]. - The company aims to strengthen its wealth management capabilities through technology empowerment and a comprehensive financial product service system[89]. - The company will continue to develop its asset custody business, focusing on standardized products and enhancing service quality[92]. Investment and Capital Management - The company raised RMB 3.8 billion through various debt financing methods during the reporting period[108]. - The company plans to enhance its investment strategies in 2024, focusing on quantitative and ETF index investments to improve returns[105]. - The company aims to enhance its professional capabilities and improve service quality to support small and medium-sized enterprises in the new three-board market[97]. - The company will focus on post-investment management and risk control in its alternative investment sector, with 22 direct investment projects at the end of the reporting period[102]. Employee and Organizational Development - The company promotes a corporate culture centered on integrity, innovation, pragmatism, and collaboration, which enhances employee cohesion and supports strategic execution[199]. - A talent strategy is central to the company's development, emphasizing the recruitment and retention of key personnel while improving its human resources and compensation systems[200]. Market Position and Challenges - The company remains positioned as a small to mid-sized securities firm within an increasingly competitive industry, facing significant pressure and challenges due to the concentration of advantages among leading firms[194]. - The management team possesses extensive experience in the securities and financial services industry, ensuring the company can respond effectively to regulatory changes and market competition[195].

Financial Performance - The company reported its annual performance for the year ending December 31, 2023, with a focus on implementing the spirit of the 20th National Congress of the Communist Party of China[2]. - Total revenue for 2023 was RMB 2,513,314 thousand, a decrease of 7.78% compared to RMB 2,725,455 thousand in 2022[35]. - Profit before tax for 2023 was RMB 16,665 thousand, a significant increase of 100.83% from a loss of RMB 2,008,380 thousand in 2022[35]. - Net profit attributable to ordinary shareholders for 2023 was RMB 64,145 thousand, up 104.99% from a loss of RMB 1,286,372 thousand in 2022[35]. - Basic and diluted earnings per share for 2023 were both RMB 0.02, a recovery from a loss of RMB 0.49 in 2022, representing an increase of 104.08%[35]. - The group reported total revenue and other income of RMB 2,513.31 million, a year-on-year decrease of 7.78%[70]. - The net profit before tax was RMB 16.66 million, representing a significant increase of 100.83% year-on-year[76]. - The total management scale of Xinhua Fund decreased to RMB 48,099 million, a year-on-year decline of RMB 9,499 million, or 16.49%[63]. Business Strategy and Development - The company emphasized the importance of sustainable development and established a vision to become a comprehensive financial service provider covering the entire life cycle and multi-level risk preferences[6]. - The company aims to optimize its business structure and growth model while firmly advancing wealth management transformation[6]. - The company plans to continue integrating into the new development pattern and actively support high-quality development in the financial sector[6]. - The company is committed to long-term stable development, avoiding short-term speculation, and focusing on serving the real economy[6]. - The company is focused on expanding its market presence through strategic investments and the establishment of new subsidiaries[26]. - The company aims to enhance its wealth management services through a comprehensive financial product service system, focusing on retail and institutional business[53]. - The company plans to enhance innovation in brokerage services and diversify its business offerings in 2024[49]. - The company is actively transforming its brokerage business towards wealth management, optimizing its organizational structure and business layout[158]. Risk Management - The company faces major risks including strategic planning risks due to macroeconomic and capital market changes, credit risks from debtors or counterparties, and market risks such as equity asset price fluctuations, interest rate risks, and exchange rate risks[11]. - The company has established an internal control and risk management system to mitigate various operational risks[11]. - The company has a risk control and monitoring committee to oversee risk management practices[14]. - The company has established a four-level risk management system involving the board of directors, management, risk management departments, and business departments[148]. - The company employs a risk management framework that includes Value at Risk (VaR), basis point value (DV01), and maximum drawdown as part of its market risk indicator system[141]. - The company has implemented measures for market risk management, including limit management, daily monitoring, stress testing, and risk reporting[141]. - The company continuously monitors liquidity risk indicators such as Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) and conducts stress tests at least biannually[142]. Corporate Governance - The board of directors proposed no profit distribution for the fiscal year ending December 31, 2023[2]. - The company has a total of 9 directors, including 3 independent non-executive directors[13]. - The company has established a comprehensive human resources management system to protect employee rights and enhance their professional development[181]. - The company has not engaged in equity financing during the reporting period[126]. - The company has entered into non-competition agreements with several entities, ensuring they will not engage in competing businesses post-listing[173]. Compliance and Legal Matters - The company strictly adheres to legal regulations, including the Company Law and Securities Law of the People's Republic of China, ensuring compliance in its operations[190]. - The company faced administrative penalties due to compliance management issues, with specific incidents occurring on April 10, 2023, and July 14, 2023[194]. - The company is involved in ongoing litigation related to the Qinghui Leasing Phase I Asset Support Special Plan, with claims totaling approximately RMB 53 million against the original rights holder and other parties[199]. - The company has received adverse court rulings in multiple cases related to investment losses, with some cases already executed[198]. Social Responsibility - The company actively participated in social responsibility initiatives, including poverty alleviation and community support, by organizing various charitable activities[187]. - The company signed procurement agreements with local cooperatives to support rural revitalization efforts, demonstrating its commitment to social responsibility[188]. - The national-level investor education base received an "Excellent" rating in the 2023 assessment, and the company won the "2023 Golden Wisdom Award" for outstanding investor education[186]. Financial Position - Total assets as of December 31, 2023, were RMB 31,202,650 thousand, a slight increase of 0.58% from RMB 31,021,248 thousand in 2022[36]. - Total liabilities as of December 31, 2023, were RMB 23,012,586 thousand, an increase of 0.78% from RMB 22,835,492 thousand in 2022[36]. - The debt-to-asset ratio increased to 60.42% in 2023 from 57.49% in 2022, reflecting a rise of 2.93 percentage points[36]. - The net capital as of December 31, 2023, was RMB 6,384.05 million, an increase of RMB 961.41 million from RMB 5,422.64 million at the end of 2022[44].

Financial Reporting - The company reported a mid-term financial data for the six months ending June 30, 2023, prepared in accordance with international financial reporting standards[3]. - The board of directors and supervisors confirmed the accuracy and completeness of the report, with no dissenting opinions from any members[3]. - The report includes a summary of key financial indicators and accounting data, which is detailed in section three of the report[2]. - The report was reviewed by Crowe (HK) CPA Limited in accordance with the Hong Kong Institute of Certified Public Accountants' standards[3]. - The company expects to adopt new and revised International Financial Reporting Standards that will not have a significant impact on the interim financial data[121]. - The company has not early adopted any new or revised International Financial Reporting Standards that have been issued but are not yet effective[122]. Financial Performance - Total revenue and other income for the first half of 2023 reached RMB 1,448,468,000, representing a 6.78% increase compared to RMB 1,356,497,000 in the same period of 2022[20]. - Pre-tax profit for the period was RMB 211,055,000, a significant recovery from a loss of RMB 493,175,000 in the previous year, marking a 142.80% increase[20]. - Net profit attributable to ordinary shareholders was RMB 193,196,000, compared to a loss of RMB 355,462,000 in the same period last year, reflecting a 154.35% improvement[20]. - Basic and diluted earnings per share were both RMB 0.0742, a turnaround from a loss of RMB 0.1365 per share in the previous year, indicating a 154.36% increase[20]. - The weighted average return on equity improved to 2.38%, up 6.27 percentage points from a negative 3.89% in the previous year[20]. - The company achieved total revenue and other income of RMB 1,448.47 million, representing a year-on-year growth of 6.78%[32]. - The net profit for the period was RMB 159.48 million, reflecting a significant increase of 142.68% compared to the same period in 2022[32]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 31,634,697,000, a 1.98% increase from RMB 31,021,248,000 at the end of 2022[20]. - Total liabilities increased to RMB 23,263,212,000, reflecting a 1.87% rise from RMB 22,835,492,000 at the end of 2022[20]. - The net asset value per share attributable to ordinary shareholders was RMB 3.15, up 2.61% from RMB 3.07 at the end of 2022[20]. - The debt-to-asset ratio decreased to 57.30%, down 0.19 percentage points from 57.49% at the end of 2022[20]. - As of June 30, 2023, the company's net capital was RMB 5,574.28 million, an increase of RMB 151.64 million from RMB 5,422.64 million at the end of 2022[29]. Cash Flow - Cash flows from operating activities showed a net outflow of RMB 722,239,000, a significant decline compared to an inflow of RMB 1,575,754,000 in the previous year, representing a 145.83% decrease[20]. - The net cash flow from operating activities for the reporting period was RMB -722.24 million, a decrease of RMB 2,297.99 million compared to RMB 1,575.75 million in the same period of 2022[54]. - The net cash flow from investing activities increased to RMB 390.91 million, up RMB 1,089.19 million from RMB -698.28 million in the same period of 2022[54]. - The net cash flow from financing activities was RMB 956.10 million, an increase of RMB 1,530.02 million compared to RMB -573.92 million in the same period of 2022[54]. Business Segments - The brokerage and wealth management business generated revenue of RMB 785.01 million, a decline of 11.97% year-on-year[33]. - The investment banking business generated revenue of RMB 95.85 million, a decrease of 10.06% compared to the same period in 2022[38]. - Investment management business achieved revenue of RMB 404.52 million, an increase of 64.61% year-on-year[42]. - The company’s proprietary trading business generated revenue of RMB 143.80 million, an increase of 59.60% compared to the same period in 2022[47]. Risk Management - The company actively implements comprehensive risk management standards, focusing on "full coverage, monitorable, measurable, analyzable, and responsive" risk management practices[69]. - The liquidity risk management department continuously monitors liquidity coverage ratio (LCR) and net stable funding ratio (NSFR), conducting stress tests at least biannually to assess liquidity risk levels[65]. - The company has established a risk preference indicator system covering market risk, credit risk, operational risk, and concentration risk, with specific control limits set for major risks[73]. - The company has developed a securities risk monitoring management platform that integrates various risk management functions, supporting risk information collection, identification, measurement, assessment, monitoring, and reporting[72]. Corporate Governance - The company is committed to maintaining high corporate governance standards, although it deviated from certain provisions of the Corporate Governance Code[86]. - The board of directors consists of 9 members, including 2 executive directors and 3 independent non-executive directors, ensuring a strong element of independence[89]. - The board held 10 meetings during the reporting period, reviewing 36 proposals[91]. - The company has adopted the Standard Code as a conduct guideline for securities trading by directors and supervisors, confirming compliance during the reporting period[93]. Employee and Training - As of June 30, 2023, the company had a total of 2,733 employees, with 2,269 in the parent company and 464 in subsidiaries[102]. - The company conducted 28 training sessions during the reporting period, including 13 offline and 15 online sessions, to enhance employee skills and compliance[102]. - The company has implemented a training needs assessment to develop its 2023 training plan, focusing on empowering employees at all levels[102]. Legal Matters - The company faced a lawsuit regarding the QH Leasing Phase I Asset Support Special Plan, with a court ruling requiring the company to compensate RMB 30 million for principal and loss of income[80]. - The company has ongoing litigation against Hongyuan Petrochemical and QH Leasing, with claims totaling approximately RMB 530 million[82].

Financial Performance - The company reported a mid-term performance for the six months ending June 30, 2023, with unaudited financial data [2]. - Total revenue and other income for the first half of 2023 reached RMB 1,448,468,000, representing a 6.78% increase compared to RMB 1,356,497,000 in the same period of 2022 [22]. - Pre-tax profit for the period was RMB 211,055,000, a significant turnaround from a loss of RMB 493,175,000 in the previous year, marking a 142.80% improvement [22]. - Net profit attributable to ordinary shareholders was RMB 193,196,000, compared to a loss of RMB 355,462,000 in the same period last year, reflecting a 154.35% increase [22]. - Basic and diluted earnings per share improved to RMB 0.0742 from a loss of RMB 0.1365, indicating a 154.36% increase [22]. - The company reported a total comprehensive income of RMB 185,729 thousand for the period, compared to a loss of RMB 398,171 thousand in the same period last year [112]. - The profit attributable to ordinary shareholders for the six months ended June 30, 2023, was RMB 193,196 thousand, a recovery from a loss of RMB 355,462 thousand in the same period of 2022 [137]. Financial Position - Total assets as of June 30, 2023, were RMB 31,634,697,000, up 1.98% from RMB 31,021,248,000 at the end of 2022 [22]. - Total liabilities increased to RMB 23,263,212,000, a 1.87% rise from RMB 22,835,492,000 at the end of 2022 [22]. - The asset-liability ratio decreased to 57.30%, down 0.19 percentage points from 57.49% at the end of 2022 [22]. - The net asset value per share attributable to ordinary shareholders increased to RMB 3.15, up 2.61% from RMB 3.07 [22]. - The total equity attributable to ordinary shareholders rose to RMB 8,216,575 thousand from RMB 7,997,126 thousand, an increase of about 2.7% [115]. - The company's total liabilities as of June 30, 2023, amounted to 2,999,999 thousand RMB in subordinated bonds [165]. Cash Flow - Cash flows from operating activities showed a net outflow of RMB 722,239,000, a decline of 145.83% compared to a net inflow of RMB 1,575,754,000 in the previous year [22]. - The net cash flow from operating activities for the reporting period was RMB -722.24 million, a decrease of RMB 2,297.99 million compared to RMB 1,575.75 million in the same period of 2022 [56]. - The net cash flow from investing activities increased to RMB 390.91 million, up RMB 1,089.19 million from RMB -698.28 million in the same period of 2022 [56]. - The net cash flow from financing activities was RMB 956.10 million, an increase of RMB 1,530.02 million compared to RMB -573.92 million in the same period of 2022 [56]. Shareholder Information - The company is listed on the Hong Kong Stock Exchange under the stock code 01476 [2]. - Major shareholder Huaron Comprehensive Investment holds 569,895,304 shares, representing approximately 21.88% of the total issued shares [98]. - The company has issued a total of 2,604,567,412 shares as of June 30, 2023, including 2,153,721,412 domestic shares and 450,846,000 H shares [97]. - The company’s major shareholders include Financial Street Capital, which holds 781,367,619 shares, representing approximately 30% of the total issued shares [98]. Risk Management - The company has implemented measures to manage credit risk, particularly in financing and investment activities [65]. - The company actively implements comprehensive risk management regulations, focusing on "full coverage, monitorable, measurable, analyzable, and responsive" requirements [71]. - The liquidity risk management department continuously monitors liquidity coverage ratio (LCR) and net stable funding ratio (NSFR), conducting stress tests at least biannually [67]. - The company has established a risk preference indicator system covering market risk, credit risk, operational risk, and concentration risk, with limits set based on development strategy and financial status [75]. - The company has developed a securities risk monitoring management platform that integrates various risk management functions, supporting risk information collection and reporting [74]. Corporate Governance - The report confirms that the board of directors guarantees the truthfulness, accuracy, and completeness of the report's content [5]. - The board of directors includes both executive and independent non-executive members, ensuring diverse oversight [3]. - The company is committed to high corporate governance standards, although it has deviated from certain provisions of the corporate governance code regarding board member rotation and separation of roles [88]. - The board consists of 9 members, including 2 executive directors and 3 independent non-executive directors, ensuring a strong element of independence [91]. Operational Highlights - The company sold 2,237 financial products during the reporting period, with a total sales volume of RMB 5,938.68 million [37]. - The company provided custody services for a total of 868 funds, with a combined scale of RMB 126,846 million in asset custody, fund services, and fundraising supervision [39]. - The company is actively expanding its research and investment capabilities to enhance its asset allocation strategies in response to market fluctuations [49]. - The company is focusing on risk control and project management, with 21 direct investment projects under management [48]. Employee and Training - The company has a total of 2,733 employees, with 2,269 in the parent company and 464 in subsidiaries [104]. - The company conducted 28 training sessions during the reporting period, including 13 offline and 15 online [104]. - The company has implemented a training plan based on employee needs assessment, focusing on online and offline communication empowerment [104]. - The company is committed to complying with national laws regarding employee rights and benefits, including social insurance and housing fund contributions [104].

Market Performance - In 2022, the major indices of the Chinese securities market experienced declines, with the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index falling by 15.13%, 25.85%, and 29.37% respectively[4]. - The company heavily relies on the economic and market conditions in China, which can suddenly change and significantly impact its business and financial performance[9]. - The overall competition in the securities industry is intensifying, with increasing industry concentration and a clear Matthew effect, putting significant pressure on small and medium-sized securities firms[147]. - As of 2022, the company remains positioned as a small to medium-sized securities firm within the industry, facing challenges amid increasing competition and market reforms[148]. Financial Performance - Total revenue for 2022 was RMB 2,725,455,000, a decrease of 28.74% compared to RMB 3,824,610,000 in 2021[33]. - The company reported a pre-tax loss of RMB 2,008,380,000 for 2022, representing a significant increase in losses of 633.66% from a profit of RMB 376,340,000 in 2021[33]. - Net loss attributable to ordinary shareholders for 2022 was RMB 1,286,372,000, a decrease of 560.66% compared to a profit of RMB 279,248,000 in 2021[33]. - The company's total revenue and other income for the reporting period was RMB 2,725.46 million, a decline of 28.74% compared to 2021[45]. - The group reported an operating loss of RMB 2,008.38 million in 2022, compared to a profit of RMB 376.34 million in 2021[114]. Risk Management - The company faces major risks including strategic planning risks due to macroeconomic changes, credit risks from debtors, and market risks from asset price fluctuations[9]. - The company has established internal control and risk management systems to mitigate various operational risks[9]. - The company has established a comprehensive risk management system covering market risk, liquidity risk, credit risk, operational risk, and reputation risk[141]. - The company conducts regular stress tests to predict potential losses under extreme conditions and issues timely risk alerts when control indicators are breached[135]. Corporate Governance and Compliance - The company is committed to compliance with legal and regulatory requirements to avoid legal and compliance risks[9]. - The company has been proactive in addressing environmental concerns through resource recycling and energy conservation initiatives[184]. - The company is committed to enhancing internal management and governance following regulatory scrutiny[187]. - The company received a warning from the China Securities Regulatory Commission due to governance risks, which has since been rectified by appointing a new chairman[187]. Organizational Structure and Strategy - The company plans to reform its organizational structure and management mechanisms to address existing issues and enhance operational efficiency[4]. - The company aims to enhance its regulatory standards and professional capabilities, focusing on key businesses, regions, and clients for breakthroughs[4]. - The company is committed to fostering a corporate culture that emphasizes stability, professionalism, service excellence, and teamwork[4]. - The company plans to enhance its wealth management transformation and diversify its brokerage services in 2023[47]. Investment and Asset Management - The company aims to enhance its asset management capabilities by expanding product lines and creating a professional asset management platform for investors[132]. - The company plans to focus on expanding its asset management and advisory services to improve revenue streams in the future[82]. - The investment banking business will continue to deepen reforms and expand service channels to better serve the real economy, leveraging existing customer bases[132]. - The company will continue to manage existing projects and enhance risk control in private equity investments[63]. Social Responsibility and Community Engagement - The company donated RMB 100,000 to a school in Yunnan Province for the construction of a multimedia classroom as part of its social responsibility initiatives[180]. - The company actively participated in community support during the pandemic, donating RMB 100,000 for essential supplies and support for frontline workers[182]. - The company has established a national-level investor education base and two provincial-level bases, aiming to enhance investor financial literacy and risk awareness[177]. - The company made charitable donations totaling approximately RMB 361,500 during the reporting period[185]. Human Resources and Talent Management - The company prioritizes talent strategy and has established a market-oriented employee incentive mechanism to attract and retain key personnel[154]. - The company has implemented a comprehensive human resources management system to protect employee rights and enhance their professional development[174]. - Over 2% of the company's headquarters staff have more than three years of relevant experience in risk management, providing a talent guarantee for effective risk management[145]. Legal and Regulatory Matters - The company is involved in multiple ongoing litigations, including a significant case where it was ordered to compensate RMB 60 million to various financial institutions[189]. - The company is currently appealing several court decisions related to financial compensations, indicating ongoing legal challenges[190]. - The arbitration case involving the Dongxu series of special account products resulted in a ruling requiring the company to pay RMB 1.17 billion in compensation to Industrial and Commercial Bank of China Beijing Branch[193]. Environmental Initiatives - The company has implemented internal recycling measures for consumables to reduce resource consumption and environmental impact[184]. - The company encourages energy-saving practices in offices, promoting reduced lighting and air conditioning usage[184].

Market Performance - In 2022, the major indices of the Chinese securities market experienced declines, with the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index falling by 15.13%, 25.85%, and 29.37% respectively[9]. - The overall GDP growth for China in 2022 was 3.00%, with the first industry growing by 4.10% and the second industry by 3.80%[63]. Financial Performance - Total revenue for 2022 was RMB 2,725,455, a decrease of 28.74% compared to RMB 3,824,610 in 2021[41]. - The company reported a pre-tax loss of RMB 2,008,380 for 2022, a significant decline of 633.66% from a profit of RMB 376,340 in 2021[41]. - Net loss attributable to ordinary shareholders was RMB 1,286,372 in 2022, down 560.66% from a profit of RMB 279,248 in 2021[41]. - The basic and diluted earnings per share for 2022 were both RMB (0.49), a decline of 545.45% from RMB 0.11 in 2021[41]. - The weighted average return on equity was (14.86%) in 2022, a decrease of 17.90 percentage points from 3.04% in 2021[41]. - The company's total fixed asset investment for the year was RMB 572,138 million, reflecting a growth of 5.10% year-on-year[63]. - The total operating loss for the group was RMB 2,008.38 million, compared to a profit of RMB 376.34 million in the previous year[138]. Risk Management - The company faces major risks including strategic planning risks due to macroeconomic changes, credit risks from counterparties, and market risks from asset price fluctuations[17]. - The company has established internal control and risk management systems to mitigate various operational risks[17]. - The company has implemented measures to enhance risk monitoring systems and improve the quality of risk assessments for new projects[154]. - The company has established a comprehensive risk management system, including specific management regulations for liquidity risk, market risk, credit risk, operational risk, and reputation risk[165]. - The company has set risk control limits based on its development strategy, operational goals, and financial status, including risk limits, business scale, value at risk, sensitivity indicators, and stop-loss measures[168]. Corporate Governance - The company did not declare a profit distribution for the year ending December 31, 2022[2]. - The board recommends no profit distribution for the year ending December 31, 2022, maintaining a focus on shareholder returns and financial stability[185]. - The company has a four-tier risk management system involving the board of directors, management, risk management departments, and business departments[166]. Organizational Structure and Strategy - The company plans to reform its organizational structure and optimize its management mechanisms to address existing issues[9]. - The company aims to enhance its regulatory standards and professional capabilities in key businesses and regions in 2023[9]. - The company is focusing on talent strategy and market-oriented employee incentive mechanisms to attract and retain key personnel[178]. - The company aims to enhance its operational management level and promote business integration in 2023, focusing on standardization, specialization, and efficiency[179]. Business Operations - The company has strengthened internal control management and optimized compliance and risk management systems in 2022[9]. - The company emphasizes the importance of internal collaboration and has implemented measures to control revenue fluctuations[9]. - The company is actively exploring business transformation and upgrading, particularly in wealth management, to enhance its market influence[176]. - The company is focused on diversifying its brokerage business and increasing market share through innovative business investments[66]. Compliance and Legal - The company has a risk control and monitoring system in place to address compliance and legal risks[17]. - Compliance risk will be managed through a robust compliance management system, including compliance reviews and training[161]. Investment and Acquisitions - The company has expanded its operations through acquisitions, including Shanghai Yongda Futures Brokerage Co.[28]. - The company completed 42 bond underwriting projects with a total underwriting amount of RMB 15,200 million, including 10 corporate bonds totaling RMB 5,760 million and 32 company bonds totaling RMB 9,440 million[74]. Customer and Market Engagement - New accounts opened totaled 262,100, bringing total customers to 3,496,900, an increase of 7.17% from the end of 2021[65]. - The company sold 2,885 financial products with a sales scale of RMB 7,794.29 million during the reporting period[68]. Human Resources - The company has established a comprehensive human resources management system to protect employee rights and enhance their professional development[199].