Financial Performance - The company reported a mid-term financial data for the six months ending June 30, 2022, prepared in accordance with international financial reporting standards[6]. - The total revenue for the reporting period was RMB 1.2 billion, representing a year-on-year increase of 15%[6]. - The net profit attributable to shareholders was RMB 300 million, reflecting a growth of 20% compared to the same period last year[6]. - Total revenue and other income for the first half of 2022 was RMB 1,356,497 thousand, a decrease of 18.91% compared to RMB 1,672,879 thousand in the same period of 2021[24]. - The pre-tax loss for the period was RMB (493,175) thousand, representing an increase of 2,984.08% from RMB (15,991) thousand in the previous year[24]. - The net loss attributable to ordinary shareholders for the period was RMB (355,462) thousand, an increase of 2,745.97% compared to RMB (12,490) thousand in the first half of 2021[24]. - The company reported total revenue and other income of RMB 1,356.50 million, a decrease of 18.91% compared to the same period in 2021[32]. - The company incurred a loss of RMB 373.70 million, representing a significant decline of 3,032.44% year-on-year[32]. - The company achieved total revenue and other income of RMB 1,356.50 million, a decrease of 18.91% compared to the same period in 2021[52]. - The net profit attributable to shareholders was RMB -355.46 million, a decline of 2,745.97% year-on-year[52]. User and Market Growth - User data indicated an increase in active accounts by 25%, reaching a total of 1.5 million users[6]. - The company plans to expand its market presence by entering three new provinces in the next fiscal year[6]. - The total number of new accounts opened was 192,300, bringing the total customer base to 3,454,900, an increase of 5.89% from the end of 2021[33]. Research and Development - The company has allocated RMB 100 million for research and development in new technologies over the next year[6]. - New product development includes the launch of a mobile application aimed at enhancing user engagement, expected to be released in Q4 2022[6]. Strategic Initiatives - A strategic acquisition of a fintech startup is in progress, which is anticipated to enhance the company's service offerings[6]. - The management provided a performance guidance for the next quarter, projecting a revenue growth of 10%[6]. - The company is actively exploring new project developments in the non-ferrous metals and new consumption sectors, following preliminary due diligence[45]. - The company aims to enhance its international business by expanding its global resource network and focusing on wealth management services[49]. Financial Position - The total assets as of June 30, 2022, amounted to RMB 37,447,821 thousand, reflecting a slight increase of 0.55% from RMB 37,243,056 thousand at the end of 2021[24]. - Total liabilities increased by 2.19% to RMB 28,123,174 thousand from RMB 27,519,396 thousand at the end of 2021[24]. - The net asset value per ordinary share was RMB 3.43, down from RMB 3.58, representing a decrease of 4.19%[24]. - The debt-to-asset ratio was 59.60%, an increase of 1.20 percentage points from 58.40% at the end of 2021[24]. - As of June 30, 2022, the company's net capital was RMB 6,977.40 million, a decrease of RMB 306.22 million from RMB 7,283.62 million at the end of 2021[29]. Risk Management - The company plans to strengthen its risk control capabilities and compliance awareness to support the sustainable development of the securities industry[50]. - The company has established a comprehensive risk management system covering liquidity risk, market risk, credit risk, operational risk, and reputation risk[76]. - The company actively monitors reputation risk events through a public opinion monitoring system and reports findings to management for decision-making[74]. - The company has implemented a dynamic capital monitoring system, risk authorization, regular risk reporting, and stress testing to identify and respond to significant risks[81]. Legal and Compliance - The board confirmed that there are no significant legal issues or disputes affecting the company’s operations[6]. - The company was ordered to compensate a total of RMB 60 million, RMB 130 million, and RMB 100 million to three financial institutions due to a previous lawsuit[83]. - The company has appealed against the court's decision regarding the compensation claims and is preparing for a retrial[84]. - The company is involved in a new borrowing dispute with Xin Fengxiang Financial Co., Ltd., with a total principal amount of RMB 375 million and interest of RMB 1.62 million claimed[85]. Corporate Governance - The company is committed to maintaining high corporate governance standards and has complied with all applicable governance codes during the reporting period[88]. - The company held one shareholders' meeting during the reporting period[90]. - The board consists of 8 members, including 1 executive director and 7 non-executive directors, with 6 meetings held during the reporting period[91]. - The supervisory board has 3 members and convened 1 meeting, reviewing 7 proposals during the reporting period[92]. Employee and Training - As of June 30, 2022, the company had a total of 2,992 employees, with 2,448 in the parent company and 544 in subsidiaries[103]. - A total of 19 online training sessions were conducted during the reporting period, focusing on various business lines and compliance risk management[103]. - The company has established a training plan for 2022 based on employee feedback, promoting a digital training model[103].

Market Performance - In 2021, the Shanghai Composite Index increased by 4.80%, while the Shenzhen Component Index rose by 2.67%, and the ChiNext Index saw a notable increase of 12.02%[7]. Business Strategy and Development - The company aims to accelerate its wealth management transformation and enhance compliance and risk management for high-quality business development in 2022[7]. - The company plans to strengthen its financial technology capabilities and promote a comprehensive online and offline integration model for business growth[7]. - The company acknowledges the need for ongoing investment in technology and talent to maintain competitive advantages in the market[7]. - The company aims to expand its market presence through strategic investments and acquisitions[36]. - The company is focused on asset management, investment consulting, and financial advisory services[36]. - The company aims to enhance its wealth management business as a key growth driver, focusing on digital transformation and user experience improvements[156]. - The company plans to focus on QDII business and international capital intermediary services as key directions for future growth[91]. - The company will continue to optimize its investment strategies to adapt to market changes and enhance research capabilities[89]. Financial Performance - Total revenue and other income for 2021 reached RMB 3,824.61 million, an increase of 3.91% compared to RMB 3,680.84 million in 2020[44]. - Pre-tax profit decreased by 37.12% to RMB 376.34 million from RMB 598.54 million in 2020[44]. - Net profit attributable to ordinary shareholders was RMB 279.25 million, down 41.10% from RMB 474.09 million in 2020[44]. - Total assets as of December 31, 2021, amounted to RMB 37,243.06 million, reflecting a 10.86% increase from RMB 33,596.03 million in 2020[45]. - Total liabilities increased by 13.90% to RMB 27,519.40 million from RMB 24,160.27 million in 2020[45]. - The company's net cash generated from operating activities was RMB 779.93 million, down 36.08% from RMB 1,220.13 million in 2020[44]. - The company's asset-liability ratio increased to 58.40% from 57.50% in 2020, an increase of 0.90 percentage points[45]. - The company's weighted average return on equity decreased to 3.04% in 2021 from 4.80% in 2020, a decline of 1.76 percentage points[44]. Risk Management - The company faces significant risks from macroeconomic changes and capital market fluctuations, which could adversely impact its business and financial performance[16]. - The company has established internal control and risk management systems to mitigate various operational risks[16]. - The company has a strong focus on promoting a culture of compliance and risk control within its operations[7]. - The company has established a comprehensive risk management system, focusing on liquidity, market, credit, operational, and reputational risks[164]. - The liquidity risk management includes continuous monitoring of liquidity coverage ratio (LCR) and net stable funding ratio (NSFR), with stress tests conducted at least biannually[160]. - Market risk management involves setting overall limits for proprietary trading and implementing measures such as daily monitoring and stress testing[159]. - Credit risk is managed through an internal credit rating system and due diligence on financing projects to ensure appropriate credit limits[157]. - The company has developed a reputation risk management system to monitor and respond to potential negative perceptions from stakeholders[163]. Compliance and Governance - The company emphasizes the importance of internal governance and compliance systems to support stable business operations[7]. - The company has established a four-level risk management system, including the board of directors, management, risk management functions, and business departments, ensuring comprehensive risk management responsibilities across all subsidiaries[166]. - The company invested approximately RMB 65.14 million in compliance and risk management information systems, enhancing operational support capabilities[171]. - The company has established comprehensive risk management systems for new business innovations, ensuring compliance and risk control[155]. Subsidiaries and Ownership - The company is 100% owned by its major shareholders, including Tianfeng Securities and other subsidiaries[20]. - The company holds a 58.62% stake in Xinhua Fund Management Co., Ltd.[14]. - The company has a 95.10% ownership in Hengtai Futures Co., Ltd.[20]. - The company has established multiple subsidiaries, including Hengtai Pioneer Investment and Hengtai Capital Investment[29]. Employee and Talent Management - The company will continue to optimize its talent mechanism and enhance talent competitiveness to align with its strategic development goals[7]. - The company emphasizes a talent strategy and market-oriented employee incentive mechanisms to enhance its competitive edge in talent acquisition[179]. - The management team possesses extensive industry experience, ensuring timely responses to regulatory requirements and market competition[174]. Future Outlook - In 2022, the company plans to optimize its brokerage services and enhance its mobile client features to increase market share in the securities brokerage sector[156]. - The investment banking division will prioritize compliance and risk management while accelerating project approvals and expanding into innovative bond projects[156]. - The asset management business will focus on fixed income products and develop "fixed income+" and mixed new products to continuously create positive returns for clients[181]. - The company plans to strengthen compliance and risk management while accelerating business integration and transformation to achieve high-quality development[181].