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].

Financial Performance - The company's total revenue and other income for 2019 reached RMB 15,352.4 million, representing a 13.87% increase compared to RMB 13,482.6 million in 2018[39]. - The pre-tax profit for 2019 was RMB 1,218.9 million, a significant increase of 299.05% from RMB 305.4 million in 2018[39]. - Net profit attributable to shareholders for 2019 was RMB 567.9 million, up 449.68% from RMB 103.3 million in 2018[39]. - The company's basic earnings per share for 2019 was RMB 0.12, reflecting a 449.68% increase from RMB 0.02 in 2018[35]. - The company's total revenue for the securities industry in 2019 reached RMB 360.48 billion, a 35% increase year-on-year, while net profit surged by 85% to RMB 123.10 billion[45]. - The company's overall trading volume in the futures market increased by 37.82% year-on-year, despite a 5.95% decline in net profit across the industry[66]. - The company achieved total revenue and other income of RMB 15.35 billion in 2019, a year-on-year increase of 14%, driven by a 16% increase in commission income to RMB 6.72 billion[113]. Dividend Distribution - The company reported a total cash dividend of RMB 170,599,142.64, distributing RMB 0.37 per share to all A and H shareholders based on a total share capital of 4,610,787,639 shares as of December 31, 2019[3]. - The 2019 profit distribution plan proposed a cash dividend of RMB 0.37 per 10 shares, totaling RMB 170,599,142.64[171]. - The total number of shares for the dividend distribution is 4,610,787,639 shares, including both A-shares and H-shares[171]. - The cash dividend distribution will be conducted within two months after the approval at the 2019 annual general meeting[171]. Compliance and Governance - The financial data disclosed in the report is prepared in accordance with International Financial Reporting Standards and audited by Ernst & Young, receiving a standard unqualified audit opinion[3]. - The company confirmed no non-operating fund occupation by controlling shareholders and their related parties during the reporting period[3]. - The report indicates that there were no violations of decision-making procedures in providing guarantees during the reporting period[3]. - The company has adhered to the "comply or explain" principle in its environmental, social, and governance reporting[169]. - The company has confirmed compliance with non-competition commitments from January 1, 2019, to December 31, 2019[175]. - The domestic accounting firm, Ernst & Young Hua Ming, received a remuneration of RMB 4.18 million for auditing services[178]. - The company reported no significant litigation or arbitration matters exceeding RMB 10 million during the reporting period[180]. Risk Management - The company emphasizes the importance of risk management and compliance to promote high-quality development[138]. - The risk management framework includes four levels: the board of directors, supervisory board, management, and various risk management departments[139]. - The company has established a multi-level risk limit system to manage market risks, including equity price risk, interest rate risk, and exchange rate risk[141]. - The company has implemented an operational risk management framework to enhance accountability and reduce the likelihood of operational risk occurrences[143]. - The liquidity risk management framework includes dynamic adjustments and differentiated management for subsidiaries, ensuring adequate funding for obligations[144]. - The company has developed a robust emergency mechanism for liquidity risk, including maintaining quality asset reserves and expanding financing channels[144]. - The company has established measures to control credit risk exposure, including investment concentration limits and daily market monitoring[142]. Business Operations - The company operates in various sectors including securities brokerage, investment consulting, and margin financing, indicating a diversified business model[11]. - Everbright Securities holds memberships in multiple exchanges, including the Shanghai Stock Exchange and Shenzhen Stock Exchange, enhancing its market presence[12]. - The company operates 14 branches and 266 securities business departments across 129 cities in China[32]. - The company aims to leverage its parent group's resources to enhance its service offerings and capitalize on industry transformation trends[47]. - The company is focused on expanding its wealth management and brokerage services, which are key revenue drivers in its business model[43]. - The company aims to enhance customer service and leverage pricing strategies to expand its customer base and improve asset quality[136]. Capital Structure and Financing - The registered capital of Everbright Securities as of December 31, 2019, is RMB 4,610,787,639, remaining unchanged from the previous year[10]. - The net capital increased to RMB 36,581,036,500.42 as of December 31, 2019, up from RMB 34,420,960,958.84 in 2018, reflecting a growth of approximately 6.3%[10]. - The total amount raised from A-share equity financing in 2019 was RMB 1,532.4 billion, an increase of 27% year-on-year, with IPO fundraising totaling RMB 253.2 billion, up 84%[78]. - The company has 144 pending issuance projects and 80 projects in the approval stage as of December 2019[81]. - The company actively promoted innovative financing projects, including the first domestic innovative ABN project and the first infrastructure REITs project[80]. Social Responsibility and Community Engagement - The company has signed assistance cooperation agreements with five national-level poverty-stricken counties, including Xintian County in Hunan and Xiji County in Ningxia, leading the industry in the number of paired assistance agreements[164]. - A total of 1,599,000 RMB has been allocated for poverty alleviation efforts, helping 46,286 registered impoverished individuals to escape poverty[165]. - The company has invested 1,087.78 million RMB in eight industry development poverty alleviation projects, focusing on agricultural and forestry industries[165]. - The company has provided 60,000 RMB in financial aid to 60 impoverished students as part of its education poverty alleviation initiatives[165]. - A total of 413.67 million RMB has been invested in healthcare resources in impoverished areas to improve medical services[165]. - The company aims to continue exploring new poverty alleviation models in 2020, focusing on precise poverty alleviation strategies in line with national goals[166]. - The company has received multiple awards for its contributions to poverty alleviation, including the "Best Social Contribution Award" at the China Golden Ding Awards in November 2019[165].