Financial Performance - The total revenue for the first half of 2021 reached RMB 15.35 billion, an increase of 27.37% compared to RMB 12.05 billion in the same period of 2020[38]. - Profit before tax for the same period was RMB 3.13 billion, up 76.10% from RMB 1.78 billion year-on-year[38]. - Net profit attributable to the owners of the company was RMB 2.70 billion, reflecting a 76.95% increase from RMB 1.53 billion in the previous year[38]. - The company's total assets as of June 30, 2021, amounted to RMB 311.28 billion, a 6.93% increase from RMB 291.12 billion at the end of 2020[39]. - Total liabilities increased by 8.37% to RMB 250.21 billion from RMB 230.89 billion at the end of 2020[39]. - The company's operating cash flow was negative at RMB (5.90) billion, a significant decline of 394.21% compared to RMB 2.00 billion in the previous year[38]. - The weighted average return on equity increased to 4.60%, up by 1.80 percentage points from 2.80% in the previous year[38]. - The company's total assets reached RMB 311.283 billion, an increase of RMB 20.165 billion or 6.93% compared to the end of 2020[130]. - The company's equity totaled RMB 61.071 billion, showing an increase of RMB 840.079 million or 1.39% compared to the previous year[132]. Risk Management - The company faces risks from macroeconomic and monetary policy changes, as well as fluctuations in market conditions and financing costs[9]. - The company has implemented a comprehensive risk management system to address various risks, including market, credit, and liquidity risks[10]. - The company emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements[7]. - The risk coverage ratio stood at 228.02%, slightly down from 229.94% at the end of the previous year[42]. - The company has established a dynamic stop-loss mechanism and conducts sensitivity analysis to identify key factors affecting investment portfolio returns[162]. - The company has established a credit risk management system focusing on bond issuers, counterparties, and financing clients, enhancing risk assessment through contract review and monitoring[167]. - The company conducts regular liquidity stress tests and emergency drills to maintain liquidity risk within acceptable limits[168]. - The company has developed an operational risk management system to identify, assess, monitor, and report operational risks[169]. Corporate Governance - The company has a strong governance structure in place, adhering to the Corporate Governance Code as per the Hong Kong Listing Rules[20]. - The management team is led by Jin Wenzhong, who serves as both the legal representative and general manager, ensuring consistent leadership[21]. - The company completed the board of directors and supervisory board re-election, optimizing the leadership team and performance evaluation system[62]. - The company’s governance structure was updated with the election of independent directors and employee representatives to the supervisory board[182]. - The company has established a dedicated compliance and risk management committee that meets regularly to oversee governance issues[189]. - The company emphasizes the importance of investor relations management as a key part of its capital strategy[195]. - The company has established a professional investor relations management system to enhance communication with investors through various channels[195]. - The company has made efforts to improve transparency and information disclosure, ensuring accuracy and timeliness[189]. Business Operations - The company operates in various sectors including securities brokerage, financing, and investment consulting, indicating a diversified business model[23]. - Orient Securities has obtained multiple business qualifications from regulatory bodies, enhancing its operational capabilities in the securities market[25]. - The company has been authorized to conduct online securities commission business, expanding its service offerings[24]. - The company is actively involved in the bond market, with qualifications to engage in bond trading and repurchase agreements[25]. - The company has qualifications for conducting margin financing and securities lending business, approved by the China Securities Regulatory Commission[26]. - The company has qualifications for conducting public offering securities investment fund management business, approved by the China Securities Regulatory Commission[28]. - The company has qualifications for underwriting non-financial corporate debt financing instruments, approved by the China Interbank Market Dealers Association[28]. - The company has established a strong presence in both A-shares and H-shares markets, listed on Shanghai Stock Exchange and Hong Kong Stock Exchange respectively[35]. Employee and Talent Management - The company has implemented a market-oriented employee compensation benchmarking system and an employee stock ownership plan to enhance talent motivation[56]. - The company has increased its investment in talent development, providing customized training courses for various talent tiers[187]. - The company has established various social insurance programs for employees, including pension and medical insurance[186]. - The employee stock ownership plan raised a total of RMB 316,657,000, with 3,588 participants, including directors and senior management accounting for 8.27% of the total[200]. Financial Qualifications and Compliance - The financial report for the first half of 2021 was reviewed by Deloitte and prepared in accordance with international financial reporting standards[6]. - The board of directors and supervisory board have ensured the accuracy and completeness of the financial report[6]. - The company received an A rating for its information disclosure work from the Shanghai Stock Exchange, indicating the highest level of compliance[197]. - The company has not faced any significant reputation-damaging events during the reporting period, indicating effective management of sensitive incidents[176]. - The company has established a robust internal control process for IT compliance and risk management, regularly reviewing and updating relevant policies[176]. Market Expansion and Innovation - The company is actively expanding its international business through its wholly-owned subsidiary, focusing on asset management and investment banking services regulated by the Hong Kong Securities and Futures Commission[51]. - The company has launched 21 new public funds during the reporting period, with new issuance scale exceeding RMB 67 billion[74]. - The company aims to enhance its product distribution capabilities and has established good relationships with top fund managers to support its wealth management initiatives[80]. - The company is committed to optimizing its investment structure across quantitative investment, special assets, and equity investment to enhance revenue stability[100]. Shareholder Engagement - The company held its first extraordinary general meeting of 2021 on March 5, 2021, where it approved one special resolution regarding amendments to the company's articles of association and two ordinary resolutions for the election of the board of directors and supervisory board[179]. - The company’s governance updates reflect a commitment to transparency and shareholder engagement through regular meetings and resolutions[182]. - The results of the meetings were published on the Shanghai Stock Exchange and the Hong Kong Stock Exchange websites[179]. - The company held 36 roadshow communication activities in the first half of 2021, with a peak viewership of 74,000 for the annual performance presentation[196].

元证券 (於中華人民共和國註冊成立的股份有限公司，中文公司名稱為「东方证券股份有限公司」, 在香港以「東方證券」(中文)及「DFZQ」(英文) 開展業務) 股份代號:03958 東方證券股份有限公司 重要提示 一、 本 公 司 董 事 會、監 事 會 及 董 事、監 事、高 級 管 理 人 員 保 證 年 度 報 告 內 容 的 真 實、準 確、完 整，不 存 在 虛 假 記 載、誤 導 性 陳 述 或 重 大 遺 漏，並 承 擔 個 別 和 連 帶 的 法 律 責 任。 二、 公 司 全 體 董 事 出 席 董 事 會 會 議。 三、 本公司按照中國企業會計準則和國際財務報告準則編製的2020年 年 度 財 務 報 告，分 別 經 德 勤 華 永 會 計 師 事 務 所（特 殊 普 通 合 夥）和 德 勤 • 關 黃 陳 方 會 計 師 行 審 計，為 本 公 司 出 具 了 標 準 無 保 留 意 見 的 審 計 報 告。除 特 別 說 明 外，本 報 告 所 列 數 據 以 人 民 幣 為 單 位。 四、 公 司 董 事 長 金 文 忠、主 管 會 計 工 作 負 責 人 張 建 輝 及 會 計 機 構 ...

Financial Performance - Total revenue for the first half of 2020 reached RMB 12,051,783 thousand, representing a 12.54% increase compared to the same period in 2019[41]. - Profit before tax for the same period was RMB 1,777,103 thousand, up 17.75% from RMB 1,509,250 thousand in 2019[41]. - Net profit attributable to shareholders for the first half of 2020 was RMB 1,526,024 thousand, a 26.16% increase from RMB 1,209,616 thousand in the previous year[41]. - Net cash generated from operating activities decreased by 48.21% to RMB 2,004,770 thousand compared to RMB 3,871,058 thousand in the first half of 2019[41]. - The total assets as of June 30, 2020, were RMB 270,757,901 thousand, a 2.96% increase from RMB 262,971,442 thousand at the end of 2019[42]. - Total liabilities increased by 3.50% to RMB 216,269,680 thousand from RMB 208,959,805 thousand at the end of 2019[42]. - The net capital of the parent company decreased by RMB 2,718 million, or 6.78%, to RMB 37,390,213 thousand compared to RMB 40,108,216 thousand at the end of the previous year[43]. - The risk coverage ratio was 226.42% at the end of the reporting period, down from 265.40% at the end of the previous year[44]. - The liquidity coverage ratio decreased to 247.69% from 295.21% at the end of the previous year[44]. Business Operations - The company is focused on developing new financial products and enhancing its service offerings to meet market demands[20]. - The company aims to expand its market presence through strategic partnerships and potential acquisitions in the financial sector[20]. - The company is actively expanding its investment banking and private equity investment businesses, maintaining steady development[54]. - The company has established a wholly-owned subsidiary, Shanghai Dongfang Securities Asset Management Co., Ltd., to conduct securities asset management business, approved by the CSRC[25]. - The company has qualifications for conducting margin financing and securities lending business, approved by the CSRC[25]. - The company is authorized to provide comprehensive services to insurance institutional investors, as per the China Insurance Regulatory Commission[25]. - The company has qualifications for public fundraising securities investment fund management, approved by the CSRC[26]. - The company has been approved to engage in the pilot program for securities pledge-style repurchase business[26]. - The company has qualifications for conducting asset management business, approved by the CSRC[26]. - The company is authorized to participate in the inter-institutional private placement product pricing and service system[26]. Regulatory Compliance - The company is committed to complying with regulatory requirements as outlined by the China Securities Regulatory Commission[20]. - The financial report for the first half of 2020 was reviewed by Deloitte, ensuring its authenticity and completeness[6]. - The company continues to comply with regulatory standards for major risk control indicators as per the Securities Company Risk Control Indicator Management Measures[43]. - The company has established a risk management system to address market risk, credit risk, liquidity risk, and operational risk, supporting its business development[134]. - The company has implemented an operational risk management system to identify, assess, monitor, and report operational risks[140]. Market Risks - The company faces significant risks from the economic and market conditions in China, which could adversely affect its business performance and financial situation[9]. - The company has detailed the market and credit risks it faces in its report, highlighting potential challenges to its future development[11]. - The company emphasizes the importance of monitoring investment risks and not overly relying on forward-looking statements[9]. - The company has established a credit risk management system focusing on bond issuers and counterparties, enhancing risk assessment through contract review and monitoring[138]. Shareholder and Corporate Governance - The company did not propose a profit distribution plan or capital reserve increase plan for the first half of 2020[6]. - The company held its 2019 Annual General Meeting on May 15, 2020, approving 3 special resolutions and 12 ordinary resolutions, including the 2019 financial report and the profit distribution plan[149]. - The company confirmed the reappointment of Deloitte Huayong as the domestic audit firm for the 2020 fiscal year, responsible for auditing services based on Chinese accounting standards[152]. - The company has committed to avoiding competition with its actual controller and related parties, with compliance confirmed[151]. Legal Matters - The company reported no significant litigation or arbitration cases exceeding RMB 10 million, which would require disclosure under the Shanghai Stock Exchange rules[153]. - A major litigation case involved a claim for RMB 80 million against Changfu Ruihua Group, with ongoing judicial auction procedures[154]. - The company is involved in multiple lawsuits, with a pending principal repayment of RMB 40.5 million related to a case initiated in July 2019[156]. - The total amount involved in ongoing litigation exceeds RMB 100 million across various cases[156]. Employee and Corporate Culture - The company emphasizes party building and corporate culture, enhancing employee sense of belonging and trust, and has been recognized as a top employer by Fortune[62]. - The company implemented an employee stock ownership plan in 2020, raising a total of RMB 316,657,000, with participation from 3,588 employees, including directors and senior management accounting for 8.27% of the total[171]. - The company aims to enhance employee cohesion and competitiveness through the employee stock ownership plan, promoting long-term and sustainable development[171]. Community Engagement and Social Responsibility - The company has actively engaged in targeted poverty alleviation efforts, focusing on industry support, financial assistance, education, and public welfare[193]. - The company has established a long-term poverty alleviation mechanism, focusing on local resource endowments and industry development in targeted areas[194]. - The company helped raise RMB 26.32 billion for financing in impoverished areas through various financing methods during the reporting period[196]. - A total of 115 impoverished students received financial assistance amounting to RMB 0.3450 million for educational poverty alleviation[198].