Profit Distribution - The proposed profit distribution plan for 2019 includes a cash dividend of RMB 1.40 per 10 shares, totaling approximately RMB 386.11 million, which accounts for 31.63% of the net profit attributable to shareholders[7]. - The cash dividend distribution for 2018 was RMB 1.10 per 10 shares, totaling RMB 303.38 million, representing 30.10% of the net profit attributable to shareholders[181]. - The company has established a three-year shareholder return plan (2018-2020) to ensure a stable dividend mechanism[178]. - As of December 31, 2019, the company's distributable profits amounted to RMB 3.12 billion[181]. - The company’s profit distribution policy is compliant with industry regulations and provides a clear decision-making process for dividend distribution[179]. - The company will adjust the per-share distribution ratio if there are changes in total share capital before the equity distribution date[182]. - The company has not proposed any cash profit distribution plan despite having positive distributable profits during the reporting period[183]. Financial Performance - The company reported a total revenue of 1.2 billion in 2019, representing a year-over-year growth of 15%[39]. - In 2019, the company's operating income reached CNY 3,973,389,371.74, representing a year-on-year increase of 19.88% compared to CNY 3,314,496,768.38 in 2018[44]. - The net profit attributable to shareholders of the parent company was CNY 1,220,698,859.37, up 21.10% from CNY 1,008,047,034.40 in the previous year[44]. - The company achieved net income of CNY 1.04 billion in 2019, with a net profit attributable to the parent company of CNY 8.44 billion[64]. - The wealth management business generated 1.521 billion RMB in revenue, accounting for 38.29% of total operating income, with a year-on-year growth of 12.70%[76]. - The proprietary trading business saw revenue rise by 38.97% year-on-year, contributing 698.88 million RMB, or 17.59% of total revenue[76]. - The investment banking segment reported revenue of RMB 786,205,967.64, growing by 37.06% compared to the previous year[117]. Risk Management - The company faces significant risks related to macroeconomic conditions and capital market fluctuations, which could impact its operational performance[10]. - The company has implemented measures to mitigate risks, including optimizing business processes and enhancing organizational structure[10]. - The company has maintained a consistent approach to risk management, with no significant changes from the previous year[10]. - The company has established a comprehensive risk management system, continuously improving its risk control mechanisms to ensure stable business development[69]. - The company has implemented strict investment research and approval processes to manage market risk, including exposure limits and stress testing[158]. - The company has established an internal credit evaluation mechanism to control credit risk associated with bond investments and has implemented a diversified investment strategy[160]. - The company emphasizes liquidity risk management by monitoring the maturity structure of assets and liabilities and establishing a liquidity risk limit and early warning system[161]. Business Expansion - The company has expanded its business scope to include securities brokerage, investment consulting, and asset management services[18]. - The company has been actively involved in market expansion, evidenced by its membership in multiple trading centers and qualification for various financial services[18]. - The company aims to leverage its extensive network of securities business departments to capture a larger market share in the financial services sector[38]. - The company is focused on enhancing its service offerings through the establishment of new business locations in various provinces[38]. - The company is actively pursuing international expansion through the establishment of overseas subsidiaries and partnerships, aiming to tap into new growth areas[149]. Regulatory Compliance - Deloitte Huayong issued a standard unqualified audit report for the company[6]. - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties[9]. - The company’s financial performance is closely tied to the regulatory environment and market trends in the securities industry[10]. - The company has established a comprehensive compliance management system with a four-level organizational structure, including the board of directors, compliance director, legal department, and compliance personnel from subsidiaries[164]. Financial Instruments and Standards - The company implemented new financial instrument standards effective from January 1, 2019, impacting the classification and measurement of financial assets[186]. - The company’s financial assets are now categorized into three main types based on cash flow characteristics and management business models[187]. - The expected credit loss model replaced the incurred loss model, leading to an increase in credit loss provisions to RMB 799,660,381.62 from RMB 377,867,282.73[197]. - The total amount of financial assets measured at fair value decreased by RMB 12,733,307,151.79 due to reclassification adjustments[199]. Market Position - The company has established a significant presence in the securities market, with a total of 70 business locations, indicating a robust operational footprint[38]. - The company completed 9 IPO projects and 14 equity refinancing projects in 2019, ranking 10th in the industry for the number of lead underwriting[92]. - The company’s bond underwriting amount reached 40.58 billion yuan in 2019, a year-on-year increase of 147.61%[96]. - The top 10 securities companies accounted for 41.82% of the industry's revenue and 52.95% of its net profit in 2019, showing a concentration of market power[147]. Technology and Innovation - The company invested 150 million in R&D for new technologies, focusing on AI and machine learning[39]. - The company successfully launched the 198 Comprehensive APP, which won multiple awards and saw a 48.13% increase in trading volume compared to the previous year[81]. - The application of financial technology is increasingly reshaping the competitive landscape of the financial industry, enhancing customer experience and operational efficiency[150]. - The company is enhancing its financial technology capabilities to build a digital platform that supports sustainable and efficient business operations, improving operational efficiency and risk control capabilities[155].

2018 年第三季度报告 公司代码：601198 公司简称：东兴证券 东兴证券股份有限公司 2018 年第三季度报告 1 / 18 | 一、 重要提示 3 | | --- | | 二、 公司基本情况 3 | | 三、 重要事项 5 | | 四、 附录 9 | 2018 年第三季度报告 一、 重要提示 二、 公司基本情况 2.1 主要财务数据 单位：元 币种：人民币 | | | | 单位：元 | 币种：人民币 | | | --- | --- | --- | --- | --- | --- | | 项目 | 本期金额 | | 年初至报告期末金额 | 说明 | | | | （7-9 | 月） | （1-9 月） | | | | 计入当期损益的政府补助，但与公司正 常经营业务密切相关，符合国家政策规 | | | | | | | | 4,359.60 | | 2,507,130.91 | | 无 | | 定、按照一定标准定额或定量持续享受 | | | | | | | 的政府补助除外 | | | | | | | 除上述各项之外的其他营业外收入和支 | -1,565,779.89 | | 1,772,811.32 | | ...

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 1,470,051,891.72, representing a 4.16% increase compared to CNY 1,411,343,024.47 in the same period last year[25]. - The net profit attributable to shareholders of the parent company was CNY 575,843,620.48, a 1.99% increase from CNY 564,588,702.25 year-on-year[25]. - The total assets at the end of the reporting period reached CNY 85,761,997,704.54, marking a 10.26% increase from CNY 77,780,746,289.12 at the end of the previous year[25]. - The total liabilities increased by 12.97% to CNY 66,119,519,796.04 from CNY 58,527,462,905.17 at the end of the previous year[25]. - The basic earnings per share for the first half of 2018 was CNY 0.209, up 1.95% from CNY 0.205 in the same period last year[26]. - The weighted average return on equity decreased to 2.97%, down 0.05 percentage points from 3.02% year-on-year[26]. - The liquidity coverage ratio decreased to 154.06% from 239.83% year-on-year[26]. - The total non-recurring gains and losses amounted to CNY 4,380,486.87 during the reporting period[27]. Capital and Funding - The registered capital of Dongxing Securities remains at CNY 2,757,960,657, unchanged from the previous year-end[15]. - The net capital decreased to CNY 17,840,195,911.37 from CNY 19,608,892,499.77, reflecting a decline of approximately 9.0%[15]. - The company raised a total of 6.636 billion RMB in new borrowings in the first half of 2018, including 5.3 billion RMB from new corporate bonds[127]. - The company issued a total of CNY 20 billion in subordinated bonds, with "16 Dongxing 02" having a coupon rate of 3.68%[156]. - The company has a total outstanding bond balance of RMB 17,079.52 million and a subordinate bond balance of RMB 5 billion[159]. Risk Management - Major risks include market risk, credit risk, liquidity risk, operational risk, and compliance risk, which are closely tied to the domestic macroeconomic environment and capital market fluctuations[6]. - The company emphasizes the importance of regulatory compliance and risk management in its operations to mitigate potential impacts from market volatility[6]. - The risk coverage ratio was 206.31%, down from 230.43% at the end of the previous year[26]. - Credit risk is managed through strict client suitability assessments and internal credit evaluation mechanisms[85]. - Liquidity risk is mitigated by maintaining a robust liquidity management system and holding highly liquid financial instruments[87]. Business Operations - The company holds various business qualifications, including securities brokerage, investment consulting, and asset management, enhancing its operational capabilities[15]. - The report indicates that the company is focused on expanding its service offerings and enhancing its market presence through strategic initiatives[6]. - The company established 5 new branches and 2 new business departments, increasing the total number of branches from 79 to 82[59]. - The company completed 12 equity projects and 15 debt projects, with a total underwriting amount of RMB 290.53 billion, an increase of 25.53% year-on-year[64]. - The company’s investment banking business net income was RMB 3.29 billion, reflecting a growth of 16.01% compared to the previous year[63]. Shareholder and Stock Management - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital during the reporting period[4]. - The company plans to reduce its shareholding in Dongxing Securities by no more than 2% of the total shares each year after the lock-up period expires[101]. - The company will implement measures to stabilize its stock price, including stock buybacks and increasing shareholdings by major shareholders[101]. - The company will disclose specific measures for stabilizing stock prices within 15 trading days after triggering conditions[101]. - A cash dividend of no less than 5% of the distributable profit from the previous fiscal year will be distributed to all shareholders if stabilization measures are not executed[102]. Compliance and Governance - The company has appointed Deloitte Huayong as the financial audit and internal control audit institution for the year 2018[105]. - The company received a warning and a fine of RMB 1,000 from the State Administration of Foreign Exchange for failing to register direct investment stock rights from 2015 to 2016, and has completed the necessary rectification[106]. - The company has committed to maintaining the legal rights of all shareholders and will not engage in actions that harm the interests of Dongxing Securities or its shareholders[104]. - The company has established a compensation mechanism for investors in case of losses due to false statements in the prospectus[103]. - The company has not faced any penalties or investigations involving its directors, supervisors, or senior management during the reporting period[106]. Social Responsibility - The company invested approximately 1.06 million RMB in targeted poverty alleviation efforts during the first half of 2018, conducting 10 visits and assessments[120]. - A total of 1.0583 million RMB was allocated for social poverty alleviation, with 1 million RMB specifically for the poverty alleviation public welfare fund[119]. - The company received the "Outstanding Contribution Award for Poverty Alleviation Work in 2017" from the China Poverty Alleviation Foundation in March 2018[119]. - The company plans to continue its "Financial Poverty Alleviation + Educational Poverty Alleviation" strategy, focusing on four designated poverty-stricken counties in 2018[121].

Financial Performance - The proposed profit distribution plan for 2017 is to distribute a cash dividend of RMB 1.50 per 10 shares, totaling RMB 413,694,098.55, which accounts for 31.60% of the net profit attributable to the parent company [7]. - The company’s net profit for 2017 was 1.31 billion RMB, a decrease of 3.23% compared to the previous year [79]. - Total operating revenue for 2017 was CNY 3,626,978,660.51, representing a 1.51% increase compared to CNY 3,573,200,156.02 in 2016 [44]. - The net profit attributable to shareholders of the parent company decreased by 3.23% to CNY 1,309,249,598.89 from CNY 1,352,929,314.59 in the previous year [44]. - The comprehensive income for 2017 was CNY 2,539,397.43, a significant recovery from a loss of CNY 710,669,272.81 in 2016 [44]. - The company achieved a net profit of RMB 20.45 billion, RMB 13.53 billion, and RMB 13.09 billion for the years 2015, 2016, and 2017 respectively, demonstrating consistent profitability [139]. Capital Structure and Financing - The company's registered capital remains at RMB 2,757,960,657, while the net capital decreased to RMB 19,608,892,499.77 from RMB 20,022,118,906.82 in the previous year [17]. - The company raised a total of RMB 24 billion from a public bond issuance and RMB 45.80 billion from three private bond issuances during the reporting period [135]. - The company’s total liabilities increased by 32.91% to CNY 2,113,271.02 million, mainly due to the issuance of corporate bonds and subordinated debt [122]. - The company reported a total of 0 RMB in guarantees provided to external parties during the reporting period [197]. - The company has no overdue guarantees or contingent liabilities related to guarantees [197]. Risk Management - The company faces significant risks related to market fluctuations, credit, liquidity, operational, and compliance risks, which could impact its performance [10]. - A comprehensive risk control system will be established to manage market, credit, liquidity, operational, and compliance risks effectively [148]. - The company implemented a net capital replenishment mechanism, adjusting business scale and structure based on regulatory risk control indicators and its risk tolerance [155]. - The company has established measures to protect shareholder rights and ensure compliance with regulatory requirements [170]. - The company has implemented corrective measures to enhance internal controls and compliance following regulatory scrutiny [180]. Business Operations and Strategy - The company has been expanding its service offerings, including securities lending and margin trading, which are crucial for enhancing its market competitiveness [24]. - The company is focused on technological advancements in its trading systems to enhance user experience and operational efficiency [24]. - The company plans to enhance its capital strength and risk resistance through strategic investments and capital increases, following the introduction of strategic investors [68]. - The company aims to transform into a comprehensive financial service provider focusing on wealth management and investment services, leveraging product innovation and cross-financial services [144]. - The company plans to continue optimizing its risk management systems in response to evolving market conditions [154]. Shareholder Relations and Governance - The company is committed to improving investor relations and transparency by regularly disclosing financial performance and strategic initiatives through various media channels [22]. - The cash dividend policy was executed in accordance with regulations, ensuring the protection of minority shareholders' rights [162]. - The company will notify shareholders 3 trading days in advance before any planned share reduction by the controlling shareholder [165]. - The company will bear legal liability for any losses caused to investors due to violations of share lock-up commitments [166]. - The company has committed to compensating investors for losses incurred due to misleading statements or omissions in its prospectus [170]. Market Presence and Growth - The company is actively involved in mergers and acquisitions, as evidenced by the absorption of Shanghai Dazhong by Shanghai Guosheng in 2014, which aimed to consolidate resources and improve operational efficiency [26]. - The overseas business generated revenue of 375 million RMB in 2017, accounting for 10% of the company's total revenue, an increase of nearly 9 percentage points from 2016 [73]. - The company plans to accelerate the development of overseas business, leveraging the gradual opening of capital markets [142]. - The company achieved a market share of 1.02% in the total stock trading volume of 2.28 trillion RMB for the year [92]. - The company plans to continue expanding branch offices in regions such as Xinjiang and Fujian, enhancing its brokerage talent pool and management [95].

Financial Performance - Net profit attributable to shareholders decreased by 8.30% to CNY 277.34 million year-on-year[9] - Operating income declined by 8.75% to CNY 657.52 million compared to the same period last year[9] - Basic earnings per share decreased by 9.09% to CNY 0.10 compared to the previous year[9] - The weighted average return on net assets fell by 0.2 percentage points to 1.43%[9] - Total operating revenue for the first quarter was ¥657,519,868.13, a decrease of 8.7% from ¥720,600,045.29 in the previous period[34] - Net commission and fee income was ¥406,294,723.60, down 6.9% from ¥436,625,694.81 year-over-year[34] - Net profit for the quarter was ¥277,034,497.87, a decline of 9.9% from ¥307,289,063.94[35] - Basic and diluted earnings per share were both ¥0.10, down from ¥0.11 in the previous period[36] - Total comprehensive income for the quarter was ¥232,416,325.84, down from ¥400,122,148.70 year-over-year[35] Assets and Liabilities - Total assets increased by 11.64% to CNY 86.84 billion compared to the end of the previous year[9] - Total liabilities reached ¥67.35 billion, up from ¥58.53 billion, reflecting an increase of around 15.5%[28] - The company's equity attributable to shareholders increased to ¥19.45 billion from ¥19.22 billion, a rise of about 1.2%[28] - The financial assets measured at fair value increased to ¥16.42 billion from ¥14.73 billion, a growth of approximately 11.5%[28] - The total number of shareholders reached 106,735 by the end of the reporting period[12] Cash Flow - Net cash flow from operating activities surged by 253.63% to CNY 5.58 billion year-to-date[9] - The net cash flow from operating activities for Q1 2018 was CNY 5,582,740,932.03, a 253.63% increase compared to CNY 1,578,712,454.28 in Q1 2017[14] - Total cash inflow from operating activities amounted to CNY 8,341,906,808.40, compared to CNY 4,733,412,308.30 in the prior period, indicating a year-over-year increase of about 76.5%[39] - Cash outflow from operating activities decreased to CNY 2,759,165,876.37 from CNY 3,154,699,854.02, reflecting a reduction of approximately 12.5%[39] - The net cash flow from investing activities was negative at CNY -3,740,579,156.16, worsening from CNY -1,580,065,980.46 in the previous period[40] - The net cash flow from financing activities improved to CNY 1,229,412,514.74 from CNY 535,346,321.42, marking an increase of about 129.0%[40] Shareholder Actions and Dividends - The company proposed a cash dividend of CNY 1.50 per 10 shares, totaling CNY 413,694,098.55, which represents 31.60% of the net profit attributable to the parent company for 2017[20] - The controlling shareholder, China Orient, intends to increase its stake in the company, with the total amount for share purchase not less than 30% of the cash dividends received in the previous year[23] - The company plans to implement a cash dividend of no less than 5% of the audited distributable profit from the previous fiscal year, totaling at least 10% of the audited distributable profit from the last fiscal year[24] Investment and Growth - The company reported a total of CNY 1.84 million in non-recurring gains and losses[10] - The company completed a capital increase for its wholly-owned subsidiary, Dongxing Securities (Hong Kong), raising its registered capital from HKD 300 million to HKD 1,499,999,384[15] - The company established seven new branch offices by March 31, 2018, in various cities including Chongqing and Hangzhou[16] - The company reported a significant increase in investment income, indicating potential growth in investment activities despite a decline in net profit[36] Risk and Warnings - There is a warning that the cumulative net profit from the beginning of the year to the next reporting period may experience significant changes compared to the same period last year[26] - The company must disclose the specific reasons for not fulfilling the stabilization measures and may face compensation responsibilities if losses occur to investors[22]