Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2021, representing a year-on-year increase of 15%[5]. - The company's total revenue and other income for the first half of 2021 reached RMB 10,552,662,000, representing a 17.90% increase compared to RMB 8,950,284,000 in the same period of 2020[20]. - The net profit attributable to shareholders for the first half of 2021 was RMB 2,262,277,000, which is a 5.13% increase from RMB 2,151,890,000 in the first half of 2020[20]. - The operating cash flow for the first half of 2021 was RMB 2,680,916,000, a significant improvement of 913.50% compared to a cash outflow of RMB 329,554,000 in the same period of 2020[20]. - The basic and diluted earnings per share for the first half of 2021 were both RMB 0.48, reflecting a 2.13% increase from RMB 0.47 in the first half of 2020[17]. - The company's net profit margin improved by 1.22% to RMB 59,165,916 thousand from RMB 58,452,676 thousand[74]. - The company reported a net increase in cash and cash equivalents of RMB 16.44 billion, with cash flows from operating activities amounting to RMB 2.68 billion[72]. Asset Management and Growth - The asset management scale reached RMB 500 billion, showing a growth of 20% compared to the previous year[5]. - The company’s total assets increased to RMB 10 billion, reflecting a growth of 12% year-on-year[5]. - Total assets increased by 7.59% to RMB 246.10 billion as of June 30, 2021, compared to RMB 228.74 billion at the end of 2020[21]. - The company's equity attributable to shareholders increased by 7.90% to RMB 56.59 billion from RMB 52.45 billion[21]. - The company’s asset management business generated revenue of RMB 777.8 million, accounting for 7% of total revenue in the first half of 2021[34]. - As of June 30, 2021, the total assets under management by the company's asset management subsidiary reached RMB 267.7 billion, a 14.59% increase from the end of 2020[62]. Business Strategy and Development - The company plans to expand its market presence by increasing its investment in technology and digital services, aiming for a 30% increase in user engagement by the end of 2022[5]. - The company is focusing on the development of new financial products, with an expected launch of at least three new offerings by Q4 2021[5]. - The company aims to deepen customer engagement and enhance cross-selling through a customer-centric operational philosophy[30]. - The company plans to enhance digital technology capabilities and expand its high-net-worth client base in the second half of 2021[42]. - The company is exploring potential mergers and acquisitions to enhance its market position and expand its product offerings[192]. Risk Management - The management highlighted potential risks including market volatility and regulatory changes, which could impact future performance[5]. - The company has established a comprehensive risk management system aligned with its strategic development goals, focusing on improving risk management standards and effectively managing various operational risks[90]. - The company employs margin settlement for client securities and futures transactions, minimizing credit risk exposure[95]. - The company has implemented a liquidity risk management framework, including emergency plans and regular stress tests to ensure sufficient funding availability[98]. Corporate Governance and Compliance - The board of directors unanimously approved the mid-term report, with no objections raised by any board members[5]. - The company has established a compliance management system with 2 new regulations and 2 revised regulations, forming a system consisting of 1 basic regulation, 1 implementation method, and 46 specific norms[102]. - The company strictly complied with the Corporate Governance Code and achieved most of the recommended best practices[140]. Shareholder Information - The total number of shares issued by the company as of June 30, 2021, is 4,610,787,639, including 3,906,698,839 A-shares and 704,088,800 H-shares[150]. - The largest shareholder, China Everbright Group Co., Ltd., holds 1,159,456,183 shares, representing 25.15% of the total shares[152]. - The total number of ordinary shareholders as of the reporting period end is 230,222, with 230,050 A-share shareholders and 172 H-share registered shareholders[151]. Environmental and Social Responsibility - The company actively supports green finance and led the underwriting of the first carbon-neutral green panda bond in the country[114]. - The company donated RMB 3.2 million for targeted poverty alleviation efforts and purchased agricultural products worth RMB 1.4791 million from impoverished areas[117]. - The company has not faced any administrative penalties due to environmental issues during the reporting period and is committed to sustainable development[113]. Legal Matters - The company has received a court ruling requiring a client to repay a financing principal of RMB 252 million, along with interest and penalties[144]. - The company has initiated arbitration against Huatai Securities involving a dispute over a bond repurchase agreement, with the amount in question being approximately RMB 196 million[146]. - The company has filed a lawsuit against a client for a financing dispute, with the amount involved being approximately RMB 15.46 million[147].

Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.58 per share, totaling RMB 728,504,446.96, based on a total share capital of 4,610,787,639 shares as of December 31, 2020[3]. - The cash dividend distribution represents 31.21% of the company's net profit for the year 2020[153]. - The company has implemented a cash dividend policy that prioritizes cash dividends over stock dividends, ensuring shareholder returns are clearly defined[149]. Financial Performance - The company's total revenue and other income for 2020 reached RMB 21,033,981 thousand, representing a 37.01% increase from RMB 15,352,397 thousand in 2019[33]. - The net profit attributable to shareholders for 2020 was RMB 2,334,078 thousand, a significant increase of 310.97% compared to RMB 567,945 thousand in 2019[33]. - The total assets of the company as of December 31, 2020, amounted to RMB 228,736,384 thousand, reflecting a 12.08% growth from RMB 204,090,347 thousand in 2019[34]. - The company's total liabilities increased to RMB 175,541,283 thousand in 2020, up 13.20% from RMB 155,071,539 thousand in 2019[34]. - The basic and diluted earnings per share for 2020 were both RMB 0.50, marking a 316.67% increase from RMB 0.12 in 2019[33]. - The company's total equity attributable to shareholders increased to RMB 52,448,880 thousand, a 10.55% rise from RMB 47,444,725 thousand in 2019[34]. - The company's liquidity coverage ratio was 209.17% as of December 31, 2020, slightly down from 216.46% in 2019[36]. Capital Structure and Financing - The registered capital of Everbright Securities as of December 31, 2020, is RMB 4,610,787,639, unchanged from the previous year[11]. - The net capital increased to RMB 40,337,555,050.59 as of December 31, 2020, up from RMB 37,185,821,381.28 in 2019, reflecting a growth of approximately 5.8%[11]. - The company issued bonds totaling RMB 30 billion on January 16, 2020, with an interest rate of 3.30%[190]. - The company issued perpetual subordinated bonds totaling RMB 20 billion on August 17, 2020, with an interest rate of 4.40%[190]. - The total amount raised in the A-share market reached 1.7 trillion yuan, an 8.19% year-on-year increase, with IPO funds raised amounting to 469.963 billion yuan, up 85.57%[66]. Risk Management - The company has established a comprehensive risk management system to effectively manage various risks faced during its operations[116]. - The risk management structure includes a four-tier organization: the board of directors and its risk management committee, the supervisory board, management and subordinate professional committees, and various risk management functional departments[117]. - The company has implemented a liquidity risk management framework, ensuring sufficient funds to meet obligations and operational needs[122]. - A liquidity risk emergency plan has been developed, detailing response measures and maintaining a reserve of high-quality assets[122]. - The company emphasizes the importance of operational risk management, enhancing process management and IT system reliability[121]. Business Operations and Strategy - The company operates in various sectors including securities brokerage, investment consulting, and margin financing, among others[12]. - The company is focused on a strategic goal of becoming a leading investment bank in China, emphasizing market-oriented and professional transformation[47]. - The company has outlined potential risks in its annual report, emphasizing the importance of risk management in its operations[8]. - The company is committed to optimizing asset allocation and enhancing investment research capabilities to develop innovative businesses such as over-the-counter trading[115]. - The company has established a financial innovation headquarters to develop derivative investment trading businesses, focusing on customized financial products and comprehensive solutions for clients[130]. Social Responsibility and Community Engagement - The company directly invested in 10 poverty alleviation projects in Xintian County, Hunan Province, to consolidate poverty alleviation results[141]. - The company issued special bonds for poverty alleviation, helping enterprises in impoverished areas raise 600 million yuan directly[142]. - By the end of 2020, all five national-level poverty-stricken counties supported by the company achieved poverty alleviation, contributing to the national goal[142]. - The total donations made by the group during the reporting period amounted to approximately RMB 14.17 million[148]. - The company has received multiple awards for its social responsibility efforts, including the "National Financial Pioneer" award from the China Financial Union[145]. Corporate Governance - The company received a written confirmation from Everbright Group, affirming compliance with non-competition commitments for the fiscal year from January 1, 2020, to December 31, 2020[154]. - The sixth board of directors was officially established on December 15, 2020, consisting of 13 members, including 5 independent directors[176]. - The company has completed the procedures for closing branches and transferring clients as per regulatory requirements[177]. - The company has not experienced any fund occupation during the reporting period[188]. - The external audit firm engaged by the company did not issue a non-standard audit report during the reporting period[188]. Shareholder Structure - China Everbright Group holds 1,159,456,183 shares, representing 25.15% of total shares[194]. - The top ten unrestricted shareholders collectively hold a significant portion of the company's shares, with the largest shareholder holding over 25%[195]. - The report indicates that the top three shareholders collectively own 99.99% of the company, highlighting a strong control by a few entities[200]. - The company has a diverse shareholder base, including state-owned entities and foreign corporations[194]. - The total number of ordinary shareholders as of the end of the reporting period is 229,439, including 229,266 A-share shareholders and 173 H-share registered shareholders[193].

Financial Performance - The company reported a mid-year financial performance with a focus on maintaining accurate and complete financial data, reviewed by Ernst & Young[3]. - Total revenue for the first half of 2020 was RMB 8,950,284,000, representing a 3.80% increase compared to RMB 8,622,714,000 in the same period of 2019[18]. - Profit before tax increased by 33.65% to RMB 2,986,106,000 from RMB 2,234,283,000 year-on-year[18]. - Net profit attributable to shareholders rose by 33.74% to RMB 2,151,890,000 compared to RMB 1,609,065,000 in the previous year[18]. - Basic and diluted earnings per share both increased to RMB 0.47 from RMB 0.35, marking a 33.74% growth[18]. - The weighted average return on equity improved by 1.09 percentage points to 4.44% from 3.35%[18]. - The company reported a net cash outflow from operating activities of RMB (329,554,000) for the first half of 2020, compared to a net inflow of RMB 31,756,504,000 in the same period of 2019[18]. - Total assets as of June 30, 2020, amounted to RMB 205,038,132 thousand, reflecting a 0.46% increase from RMB 204,090,347 thousand at the end of 2019[19]. - Total liabilities decreased by 0.62% to RMB 154,109,676 thousand from RMB 155,071,539 thousand[19]. - The net capital of the parent company increased to RMB 39,374,835 thousand, up from RMB 36,581,037 thousand, representing a growth of 7.77%[20]. - The company's net profit for the first half of 2020 was not disclosed, but the net assets as of June 30, 2020, were RMB 50,035,267 thousand, compared to RMB 48,140,820 thousand at the end of 2019[20]. Regulatory Compliance - The financial data disclosed in the report is prepared in accordance with International Financial Reporting Standards and is presented in Renminbi[3]. - The company operates under the regulatory framework of the China Securities Regulatory Commission[4]. - The board of directors and supervisory board unanimously approved the mid-year report with full participation from all 11 directors[3]. - The report indicates that the company has not violated decision-making procedures for external guarantees during the reporting period[3]. - The company has established a comprehensive risk management system aligned with its strategic development goals, focusing on improving risk management professional levels and effectively managing various operational risks[94]. - The company emphasizes a risk management culture and has implemented a performance evaluation system covering the effectiveness of risk management across all employees[95]. - The company has established strict measures to control credit risk exposure, including daily monitoring and risk education for clients[96]. - The company has established a media affairs management team to monitor public sentiment and maintain external media relations[101]. - The company has effectively controlled compliance risks by establishing a practical compliance management system[106]. Business Operations - The company holds various qualifications including securities brokerage, investment consulting, and securities underwriting, among others[11]. - The company is a member of multiple exchanges and associations, enhancing its operational capabilities in the securities market[11]. - The company maintained a strong position in the investment banking sector, ranking 5th in net income and 6th in the number of stock underwriting cases[32]. - The investment banking business continues to innovate, participating in significant asset restructuring in national poverty-stricken areas and launching new financial products[32]. - The company aims to build a collaborative ecosystem around customer-centric operations, enhancing its service offerings[31]. - The company has been recognized as the "Best Securities Company" for three consecutive years, enhancing its brand influence in the market[33]. - The company has completed 18 stock underwriting projects, ranking 6th in the market, with an underwriting amount of RMB 7.53 billion, a 95% increase year-on-year[47]. - The company achieved a bond underwriting amount of RMB 151.05 billion, with a market share of 3.50%, ranking 8th in the industry, and completed 708 projects, a year-on-year increase of 29.43%[49]. - The company has established a subsidiary for private equity fund management, expanding its investment management services[183]. Investment and Growth Strategies - The report includes forward-looking statements regarding future plans and development strategies, which do not constitute a substantive commitment to investors[3]. - The company emphasizes the importance of investment risk awareness for investors regarding future plans[3]. - The company aims to enhance its digital wealth management services and improve customer experience in the second half of 2020, focusing on high-net-worth client expansion[44]. - The company plans to enhance its underwriting quality and pricing capabilities in the second half of 2020, focusing on the new third board market and asset securitization business[52]. - The company plans to continue its poverty alleviation efforts in the second half of 2020, focusing on financing for local enterprises and implementing long-term poverty alleviation mechanisms[127]. Shareholder Information - The total number of ordinary shareholders reached 112,303, with 112,120 A-share shareholders and 183 H-share registered shareholders[137]. - The top shareholder, China Everbright Group, holds 1,159,456,183 shares, representing 25.15% of the total issued shares[138]. - China Everbright Holdings Limited is the second-largest shareholder with 982,250,000 shares, accounting for 21.30% of the total issued shares[138]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the top three alone accounting for over 60%[138]. Legal and Compliance Issues - The company is involved in multiple ongoing litigations, including a case against a stock pledge client with a claim amount of approximately RMB 24.02 million[133]. - The company received a disciplinary notice from the Shanghai Stock Exchange for inaccurate disclosure of performance forecasts for the 2018 fiscal year[135]. - The company continues to monitor the developments of ongoing legal and arbitration cases and will fulfill its disclosure obligations accordingly[135]. Employee and Organizational Structure - The company had a total of 8,913 employees as of the report date, including 2,551 brokers[152]. - The company implements a competitive salary system based on market principles, with employee income consisting of salary, performance, and benefits[152]. - The company emphasizes continuous training and development for employees, aligning with strategic planning and organizational capability building[153]. Financial Instruments and Debt Management - The company has issued various debt financing instruments, including short-term financing bonds, all of which have been repaid on time[169]. - The company has maintained a good credit reputation, repaying various debts on time without any extensions or reductions during the reporting period[170]. - The company has established a special account for the management of raised funds, ensuring compliance with the intended use as per the fundraising agreements[163]. - The company has not identified any risks that could lead to future payment defaults[171].