Group 1: Event Details - The company will participate in the 2020 Xinjiang Listed Companies Investor Online Reception Day on June 24, 2020, from 15:00 to 17:30 [1] - The event will be held online via the platform provided by Shenzhen Panorama Network Co., Ltd. [1] - Investors can access the event through the "Panorama Roadshow" website or the WeChat public account "Panorama Finance" [1] Group 2: Company Representatives - The attendees from the company include General Manager Mr. Xu Zhibin, Deputy General Manager and CFO Mr. Yang Changyun, and Securities Affairs Representative Mr. Xu Liang [1] - The company encourages investors to actively participate in the event [1] Group 3: Assurance of Information - The company and its board members guarantee that the disclosed information is true, accurate, and complete, with no false records or misleading statements [1]

Financial Performance - The company's operating revenue for Q1 2020 was CNY 7,697,085,479.74, representing a 41.05% increase compared to CNY 5,456,923,622.68 in the same period last year[4] - The net profit attributable to shareholders of the listed company was CNY 1,987,384,589.49, a 6.72% increase from CNY 1,862,235,397.63 year-on-year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 1,974,079,120.39, up 6.96% from CNY 1,845,576,581.08 in the previous year[4] - The net cash flow from operating activities was CNY 19,638,354,003.46, reflecting a 20.02% increase from CNY 16,361,892,923.70 in the same period last year[4] - The basic earnings per share remained at CNY 0.08, unchanged from the previous year[4] - The diluted earnings per share also remained at CNY 0.08, unchanged from the previous year[5] - The company's net profit for the first quarter of 2020 is not explicitly stated but is implied to be positive based on the growth in equity and assets[22] Assets and Liabilities - The total assets at the end of the reporting period were CNY 416,188,402,779.67, a 7.12% increase from CNY 388,537,264,595.61 at the end of the previous year[4] - The net assets attributable to shareholders of the listed company were CNY 84,866,440,625.95, which is a 2.00% increase from CNY 83,206,189,813.84 at the end of the previous year[4] - Total liabilities reached RMB 329.67 billion, up from RMB 303.71 billion, indicating a growth of approximately 8.5%[21] - The company's equity attributable to shareholders increased to RMB 84.87 billion from RMB 83.21 billion, representing a growth of about 2%[21] Cash Flow - The net cash flow from operating activities for Q1 2020 was RMB 19,638,354,003.46, an increase of 20.5% compared to RMB 16,361,892,923.70 in Q1 2019[25] - Total cash inflow from operating activities was RMB 28,458,759,863.27, slightly down from RMB 29,305,970,702.91 in the same period last year[25] - The net cash flow from investing activities was negative at RMB -12,578,519,604.90, a significant decrease from RMB 1,206,088,972.34 in Q1 2019[25] - Cash inflow from financing activities totaled RMB 24,308,158,133.87, compared to RMB 14,144,287,000.00 in Q1 2019, indicating a 71.5% increase[25] - The ending cash and cash equivalents balance was RMB 118,692,393,934.32, up from RMB 104,439,036,890.71 at the end of Q1 2019[25] - The company reported a net increase in cash and cash equivalents of RMB 11,101,980,313.50 for the quarter[25] Investments and Financial Instruments - Derivative financial assets increased by 92.70% to RMB 928,517,736.63 due to the expansion of options business investments[9] - Investment income decreased by 30.76% to RMB 981,616,169.19, reflecting a decline in returns from trading financial assets[9] - The fair value change of government bond futures contracts resulted in a profit of RMB 49.63 million, while interest rate swaps incurred a loss of RMB 76.83 million, and stock index futures resulted in a loss of RMB 84.33 million[15] - The total initial investment in derivatives was RMB 17,875.44 million, with a year-end investment amount of RMB 19,967.00 million, which is 235.27% of the company's net assets[17] - The company reported a total loss of RMB 26.06 million from derivative investments during the reporting period[17] Regulatory Compliance and Management - The company has complied with regulatory requirements for derivative investments, ensuring that risks are controllable and that there are no violations harming the interests of the company and its shareholders[16] - The company has not experienced any significant changes in accounting policies or principles regarding derivative investments compared to the previous reporting period[15] - The company appointed Xu Zhibin as the new general manager, completing the registration change on January 20, 2020[10] Other Financial Metrics - The company received government subsidies amounting to CNY 23,599,051.26, primarily for fiscal support[6] - The weighted average return on net assets decreased by 0.27 percentage points to 2.36% from 2.63% in the previous year[4] - Customer deposits rose to RMB 70.99 billion from RMB 62.49 billion, marking an increase of about 13.9%[21] - The total financial investments, including trading financial assets, amounted to RMB 116.83 billion, slightly up from RMB 115.23 billion, indicating a growth of about 1.4%[21] - Total operating expenses were ¥5,228,721,728.28, up from ¥3,043,608,556.20, indicating an increase of around 72%[23] - Other comprehensive income after tax for the parent company shareholders was a loss of ¥327,133,777.38, compared to a gain of ¥1,150,205,660.03 in the same period last year[23]

Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.80 per 10 shares, totaling RMB 2,003,195,564.80, based on a total share capital of 25,039,944,560 shares as of December 31, 2019[2]. - The company's retained earnings after the dividend distribution will be RMB 1,217,347,642.66, which will be carried forward to the next fiscal year[2]. - The cash dividend for 2017 was also RMB 1,126,797,228.00, representing 24.50% of the net profit of RMB 4,599,683,411.82[139]. - The cash dividend for 2018 was RMB 1,126,797,228.00, which accounted for 27.09% of the net profit of RMB 4,160,188,689.17[139]. - The net profit attributable to shareholders for 2019 is RMB 5,735,412,391.33, with the cash dividend representing 34.93% of this profit[139]. - The company will withhold a 20% personal income tax on dividends paid to mainland individual investors through the Shenzhen-Hong Kong Stock Connect[143]. - The company has implemented a unified withholding tax rate of 10% for dividends distributed to overseas H-share non-resident shareholders[143]. - The company has confirmed that the cash dividend distribution will occur within two months after the shareholders' meeting, expected no later than August 31, 2020[145]. - The company has a cash dividend policy that requires at least 30% of the average distributable profit over three consecutive years to be distributed in cash[135]. - The company maintains a continuous and stable profit distribution policy, prioritizing cash dividends when there are no major investment plans[135]. Financial Performance - Total revenue and other income for 2019 reached RMB 33,251,541,000, representing a 37.92% increase from RMB 24,109,617,000 in 2018[26]. - Profit before tax for 2019 was RMB 6,927,231,000, up 33.54% from RMB 5,187,265,000 in 2018[26]. - Net profit attributable to shareholders for 2019 was RMB 5,735,413,000, a 37.86% increase compared to RMB 4,160,189,000 in 2018[26]. - Basic earnings per share for 2019 were RMB 0.24, an increase of 26.32% from RMB 0.19 in 2018[26]. - The weighted average return on net assets for 2019 was 7.41%, up from 6.19% in 2018, reflecting an increase of 1.22 percentage points[26]. - The company's operational cash flow showed improvement, with a net cash outflow of RMB -1,004,066,000 in 2019, compared to RMB -9,396,995,000 in 2018[26]. - Total assets increased by 11.74% to RMB 388.54 billion at the end of 2019 compared to RMB 347.73 billion at the end of 2018[27]. - The company's total liabilities increased by 9.83% to RMB 303.71 billion at the end of 2019 compared to RMB 276.53 billion at the end of 2018[27]. - The company's total equity attributable to shareholders was RMB 83,206 million, representing a 19.89% increase year-on-year[75]. Corporate Governance - The financial report for 2019 has been audited by KPMG, which issued a standard unqualified opinion[2]. - The board of directors and senior management confirm the accuracy and completeness of the annual report, with no dissenting opinions from the board members[2]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a commitment to investors, highlighting the importance of investment risk awareness[2]. - The company has complied with all provisions of the Corporate Governance Code as per the Hong Kong Listing Rules[131]. - The company has established appropriate insurance arrangements for its directors and senior management against legal liabilities arising from corporate activities[127]. Risk Management - The company has established a comprehensive risk management system to effectively control market, credit, liquidity, and operational risks, ensuring healthy business development[43]. - The company emphasizes comprehensive risk management, building a multi-level risk management organizational structure[123]. - The company has implemented a unified internal evaluation system covering all subsidiaries to enhance credit risk management[110]. - The company has established a multi-level risk control indicator system to manage market risk, including risk tolerance and loss limits[107]. - The company is facing significant market risk challenges due to uncertainties in the domestic and international economic environment and the impact of the COVID-19 pandemic[108]. Business Operations - The company operates through three subsidiaries providing securities services: Shenwan Hongyuan Securities, Shenwan Hongyuan West, and Shenwan Hongyuan Underwriting[16]. - The company operates in four main business segments: corporate finance, personal finance, institutional services and trading, and investment management[32]. - The company's investment management business includes asset management, public fund management, and private fund management services, with no significant changes in the main business model during the reporting period[37]. - The company is actively exploring international business opportunities, leveraging the "Belt and Road" initiative to enhance its investment capabilities[40]. - The company has established qualifications for participating in the interbank bond market, enhancing its trading capabilities[18]. Legal Matters - The company faced a lawsuit from Shanghai Metallurgical Company, claiming RMB 7,182,778.4 in principal and additional interest, totaling approximately RMB 36.2 million[171]. - The company is involved in a contract dispute with Shanghai Zhuxin Industrial Co., requiring the delivery of 30,000 tons of coke, with a first-instance judgment ordering compliance[173]. - The company has initiated legal action against Dalian Detai Holdings for failure to provide suitable relocation housing, seeking a property of 5,000 square meters[174]. - The company is involved in a legal dispute with Dalian Detai regarding a compensation agreement, with a potential economic loss compensation of RMB 53.4659 million and a penalty of RMB 26,732.95[175]. - The company has a pending arbitration case against Cai Xiaoru, with a principal amount of RMB 75.7 million and additional claims for interest and legal fees totaling RMB 490,000[176]. Shareholder Commitments - The company's major shareholder, China Jianyin Investment, holds 60.02% of Hongyuan Securities and has made commitments to avoid unfair transactions and protect minority shareholders' interests[152]. - The commitments include ensuring fair pricing in related transactions and adhering to legal disclosure obligations[153]. - The company is currently fulfilling its commitments regarding the management of related transactions and shareholder rights[154]. - The commitments made by the board and senior management are aimed at ensuring compliance with regulatory requirements and protecting company interests[150]. - The company has pledged to participate in shareholder meetings and exercise rights without seeking undue advantages[154]. Financial Qualifications - The company holds various qualifications including securities brokerage, investment consulting, and asset management, enhancing its operational capabilities in the financial market[17]. - Shenwan Hongyuan has qualifications for trading in multiple financial instruments, including stock options and bonds, which positions it well for market expansion[18]. - The company has qualifications for various derivative products, including credit derivatives and interest rate swaps, which diversify its service offerings[19]. - The company has established qualifications for managing insurance funds, indicating its involvement in the insurance investment sector[19]. - The company has a comprehensive range of qualifications that support its strategic initiatives in market expansion and product development[17].

Group 1: Event Details - The company will participate in the 2019 Xinjiang Listed Companies Investor Reception Day on July 26, 2019, from 15:00 to 17:30 [2] - The event will be held online via the "Panjing Roadshow" platform, allowing investors to join remotely [2] - Investors can access the event through the website (http://rs.p5w.net) or the WeChat public account "Panjing Finance" (WeChat ID: p5w2012) [2] Group 2: Company Representatives - The attendees from the company include the Deputy General Manager, Chief Financial Officer, and Board Secretary, Mr. Yang Changyun, and Securities Affairs Representative, Mr. Xu Liang [2] Group 3: Assurance of Information - The company and its board members guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or significant omissions [2]

Financial Performance - The company's operating revenue for Q1 2019 was RMB 5,456,923,622.68, representing an increase of 89.46% compared to RMB 2,880,291,168.95 in the same period last year[5] - Net profit attributable to shareholders was RMB 1,862,235,397.63, up 87.54% from RMB 992,983,065.00 year-on-year[5] - Basic earnings per share rose to RMB 0.08, reflecting a growth of 60.00% from RMB 0.05 in the same quarter last year[5] - Total comprehensive income for the period was RMB 2.99 billion, compared to RMB 811.99 million in the same quarter last year, an increase of 268.5%[24] - The company's operating profit for the quarter was RMB 2.41 billion, compared to RMB 1.29 billion in the previous year, showing an increase of 86.9%[24] - The company reported a significant increase in interest income, reaching RMB 2.62 billion, compared to RMB 2.34 billion in Q1 2018, a growth of 12.1%[24] - The net profit attributable to shareholders was RMB 1.86 billion, a substantial rise from RMB 992.98 million in Q1 2018, indicating an increase of 87.5%[24] Cash Flow - The net cash flow from operating activities reached RMB 16,361,892,923.70, a significant increase of 299.17% compared to RMB 4,098,976,368.87 in the previous year[5] - The net cash flow from operating activities for Q1 2019 was RMB 16,361,892,923.70, a significant increase from RMB 4,098,976,368.87 in Q1 2018[25] - Total cash inflow from operating activities amounted to RMB 29,305,970,702.91, compared to RMB 30,021,315,497.83 in the same period last year[25] - The total cash and cash equivalents at the end of Q1 2019 reached RMB 104,439,036,890.71, up from RMB 93,733,371,954.93 at the end of Q1 2018[25] - The company reported a net increase in cash and cash equivalents of RMB 7,130,692,709.18 for the quarter, compared to RMB 4,735,480,318.40 in the same quarter last year[25] - The cash outflow for operating activities was RMB 12,944,077,779.21, significantly lower than RMB 25,922,339,128.96 in Q1 2018[25] Assets and Liabilities - Total assets at the end of the reporting period were RMB 375,150,996,227.36, an increase of 7.89% from RMB 347,725,034,856.60 at the end of the previous year[5] - The total liabilities amounted to CNY 301,935,733,215.94, compared to CNY 276,529,105,779.02 at the end of 2018[23] - The company's total liabilities decreased by 65.93% for short-term financing to RMB 4,623,292,985.59 from RMB 13,568,269,335.10, due to the repayment of certain bonds and short-term financial instruments[10] - The equity attributable to shareholders of the parent company was CNY 71,433,198,198.35, an increase from CNY 69,399,324,718.23 at the end of 2018[23] Investments - Investment income for Q1 2019 reached RMB 1,417,632,147.76, a significant increase of 87.87% from RMB 754,575,375.08 in Q1 2018[11] - The company’s total purchase amount for the reporting period was RMB 46,426,696.16 million, while the total sale amount was RMB 47,761,841.20 million, resulting in a report period profit of RMB 276,695.05 million[20] - The company’s investment in financial products included a total of RMB 80,000.00 million in a money market fund, with a beginning book value of RMB 70,000.00 million[19] - The company reported a total of RMB 12,951,894.48 million in other securities investments at the end of the reporting period, with a fair value change gain of RMB 23,029.96 million[19] Shareholder Information - The total number of shareholders at the end of the reporting period was 333,973[8] - The largest shareholder, China Jianyin Investment Limited, held 29.27% of the shares, amounting to 6,596,306,947 shares[8] Government Support - The company received government subsidies totaling RMB 20,481,091.85 during the reporting period, primarily for fiscal support and tax refunds[7] Market Conditions - The company is unable to accurately predict its operating performance for the first half of 2019 due to the significant impact of market conditions on its securities business[18] - The company plans to disclose its operating performance for the first half of 2019 after the end of the reporting period, in compliance with regulations[18]