Financial Performance - The company's operating revenue for Q3 2021 reached ¥10,963,209,880.83, representing a year-on-year increase of 59.65%[3] - Net profit attributable to shareholders for the same period was ¥3,145,750,500.23, up 49.93% compared to the previous year[3] - The net profit after deducting non-recurring gains and losses was ¥3,147,667,027.26, reflecting a growth of 49.76% year-on-year[3] - Basic earnings per share for Q3 2021 were ¥0.29, an increase of 38.10% compared to the same period last year[4] - The company's total revenue for the first three quarters of 2021 was RMB 26.10 billion, up 44.4% from RMB 18.08 billion in the same period of 2020[16] - Net income attributable to shareholders reached ¥7,400,639,134.02, up from ¥5,650,638,803.29, representing a growth of approximately 31% year-over-year[18] - Total operating income was ¥10,027,358,217.27, compared to ¥4,431,180,656.65 in the previous year, indicating a significant increase of about 126%[17] - Operating profit increased to ¥9,333,553,973.84 from ¥7,287,666,831.46, reflecting a growth of approximately 28%[17] - The company achieved a total comprehensive income of ¥7,918,545,755.48, compared to ¥4,984,371,227.66 in the previous year, indicating an increase of about 59%[18] Assets and Liabilities - Total assets as of September 30, 2021, amounted to ¥529,166,037,252.54, an increase of 18.72% from the end of the previous year[4] - The company reported a total liability of RMB 432.15 billion as of September 30, 2021, an increase from RMB 363.72 billion at the end of 2020, which is a rise of approximately 18.8%[16] - The company's total equity attributable to shareholders reached ¥96,143,375,412.57, up 18.32% from the previous year[4] - The company's cash and cash equivalents amounted to RMB 106.36 billion as of September 30, 2021, compared to RMB 92.73 billion at the end of 2020, indicating a growth of 14.7%[15] Cash Flow - The company's cash flow from operating activities for the year-to-date was ¥45,132,830,266.46, showing a growth of 47.87%[3] - The net cash flow from operating activities for the first three quarters was ¥45,132,830,266.46, compared to ¥30,521,383,596.40 in the same period last year, marking an increase of about 48%[19] - Cash inflow from financing activities totaled approximately ¥78.77 billion, a decrease from ¥122.32 billion in the previous period, resulting in a net cash outflow of approximately ¥4.85 billion[20] - The net increase in cash and cash equivalents for the period was approximately ¥10.57 billion, down from ¥23.27 billion in the previous period[20] Income Sources - Net interest income increased by 30.96% year-on-year to CNY 4,125,790,629.42, driven by the expansion of margin financing and other debt investment businesses[7] - The company reported a total revenue of ¥20,683,944,974.60 from interest, fees, and commissions, up from ¥18,278,581,547.20, which is an increase of approximately 12%[19] - The company reported a significant increase in brokerage fees, with net income from brokerage business reaching ¥6,684,258,243.62, up from ¥5,615,743,511.03, which is an increase of approximately 19%[17] Other Financial Metrics - The weighted average return on equity for Q3 2021 was 3.68%, an increase of 0.82 percentage points year-on-year[4] - The company reported a significant increase in client settlement reserves, which rose by 47.60% to ¥25,954,063,770.46[6] - Other business income rose by 126.29% to CNY 10,027,358,217.27, primarily due to increased sales revenue from subsidiaries in bulk commodities[7] - Fair value changes in income surged by 966.02% to CNY 518,949,067.02, attributed to the growth in financial investments and value fluctuations[7] - Credit impairment losses were reversed, resulting in a gain of CNY 51,160,283.29, compared to a loss of CNY 108,161,492.06 in the previous year[7] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 98,959, with no preferred shareholders restoring voting rights[8] - The top ten shareholders held a combined 51.16% of the shares, with China Galaxy Financial Holdings Limited being the largest shareholder[9] Corporate Actions - The company plans to publicly issue A-share convertible bonds totaling no more than RMB 11 billion, which was approved at the first extraordinary general meeting on October 19, 2021[13] - The company completed the change of its registered address on October 8, 2021, updating its corporate documents accordingly[14] - The company has elected a new supervisor to the fourth supervisory board during the extraordinary general meeting held on October 19, 2021[14]

Financial Performance - The company's operating revenue for the first half of 2021 reached ¥15,139,762,170.28, representing a 35.01% increase compared to the same period last year[22]. - The net profit attributable to shareholders of the parent company was ¥4,254,888,633.79, up 19.77% year-on-year[22]. - The net cash flow from operating activities decreased by 13.25% to ¥28,276,053,814.89 compared to the previous year[22]. - Total assets at the end of the reporting period amounted to ¥487,195,718,644.85, reflecting a 9.30% increase from the end of the previous year[22]. - Total liabilities increased by 8.24% to ¥393,710,587,360.10 compared to the previous year[22]. - The equity attributable to shareholders of the parent company rose by 14.11% to ¥92,719,761,370.67[22]. - The earnings per share attributable to shareholders of the parent company was ¥7.68, an increase of 1.99% from the previous year[22]. - Basic earnings per share for the reporting period (January to June) increased to CNY 0.40, up 14.29% from CNY 0.35 in the same period last year[23]. - The weighted average return on equity rose to 5.11%, an increase of 0.22 percentage points compared to 4.89% in the same period last year[23]. - The total scale of equity financing activities, including IPOs and private placements, was CNY 783.23 billion, reflecting a year-on-year growth of 20.75%[34]. Risk Management - The company faces various risks including legal and compliance risks, strategic planning risks, operational and management risks, market risks, credit risks, and liquidity risks[4]. - The company has implemented risk prevention measures across organizational structure, management mechanisms, and information technology[4]. - The company emphasizes the importance of monitoring risks associated with innovative businesses and products[4]. - The company has implemented a comprehensive risk management system, enhancing risk management tools and information systems to support sustainable business development[89]. - The company actively monitors liquidity risk, with all financial indicators remaining strong and compliant with regulatory requirements[86]. - The company has adopted various measures to manage market risks, including portfolio construction and the use of financial derivatives for effective hedging[85]. - The company emphasizes compliance risk management, establishing a comprehensive internal control mechanism to ensure legal and regulatory compliance[86]. - The company has a robust approach to operational risk management, including regular evaluations of internal controls and compliance management effectiveness[86]. Corporate Governance - The board of directors and senior management have confirmed the accuracy and completeness of the financial report[2]. - The company held its 2020 Annual General Meeting on June 29, 2021, where multiple resolutions were passed, including the approval of the 2020 annual report and financial statements[99]. - The company elected new members to its fourth board of directors and supervisory board during the 2021 Annual General Meeting[101]. - The company’s board of directors established several committees, including the Strategic Development Committee and the Audit Committee, to enhance governance[102]. - The company has adopted the Corporate Governance Code and confirmed compliance by all directors and supervisors during the reporting period[149]. Environmental and Social Responsibility - The company plans to invest RMB 48.1 million in poverty alleviation efforts in 2021, with RMB 35.5 million already allocated to Gansu Province's Jingning County[112]. - The company has underwritten a total of RMB 60.4 billion in green bonds, with its share amounting to RMB 18.21 billion[108]. - The company has published approximately 20 reports related to carbon neutrality, including strategy research and market policy interpretations[109]. - The company has established a carbon neutrality research team to support national goals of carbon peak and carbon neutrality[109]. - The company has received national and provincial recognition for its poverty alleviation efforts, including awards for its contributions in Jingning County[114]. Operational Highlights - The number of brokerage clients reached 12.83 million, a year-on-year increase of 10.2%[48]. - The revenue from brokerage, sales, and trading business was RMB 11.441 billion, up 45.39% year-on-year[47]. - The company’s derivative financial assets increased by 43.40% to RMB 1.247 billion, driven by the growth in equity derivatives[38]. - The company achieved a weighted average return on equity of 5.11%, an increase of 0.22 percentage points year-on-year[46]. - The company’s alternative asset investment segment generated operating revenue of RMB 1.57 billion, with a net profit of RMB 0.97 billion[58]. Financial Position - The company's total assets reached RMB 487.196 billion, an increase of 9.30% compared to the end of 2020[71]. - Cash and cash equivalents amounted to RMB 100.123 billion, accounting for 20.55% of total assets[71]. - The company's total liabilities reached RMB 490.000 billion, with a notable increase in other liabilities by 65.84%[71]. - The company's total debt, including bonds payable, was RMB 62.31 billion, down from RMB 65.67 billion, indicating a decrease of approximately 5.4%[187]. - The company reported a significant increase in other equity instruments to RMB 14.89 billion from RMB 4.96 billion, reflecting a growth of approximately 200%[187]. Cash Flow Analysis - Net cash inflow from operating activities was RMB 77.416 billion, accounting for 50.08% of total cash inflows, with cash received from interest, fees, and commissions at RMB 11.315 billion, representing 14.62%[66]. - Cash outflow from operating activities was RMB 49.140 billion, with net cash outflow for financial assets held for trading at RMB 12.764 billion, accounting for 25.98%[66]. - The company reported a net increase in cash and cash equivalents of RMB 15.88 billion, compared to RMB 25.19 billion in the same period last year, indicating a decrease of approximately 37%[200]. - The ending balance of cash and cash equivalents stood at RMB 110.01 billion, up from RMB 96.10 billion year-on-year, representing an increase of about 14%[200]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 105,747[154]. - The top ten shareholders hold a total of 5,186,538,364 shares, representing 51.16% of the company[156]. - The largest shareholder, China Galaxy Financial Holdings, holds 5,186,538,364 shares, with no restricted shares[156]. - The report indicates no changes in the major shareholders or actual controllers during the reporting period[160].

Financial Performance - Operating revenue rose by 35.65% to CNY 7.58 billion compared to the same period last year[4] - Net profit increased by 13.20% to CNY 1.99 billion year-on-year[4] - Basic earnings per share increased by 17.65% to CNY 0.20 per share[4] - Total operating revenue for Q1 2021 was CNY 7,579,622,186.24, a 35.7% increase from CNY 5,587,610,547.01 in Q1 2020[18] - Net profit attributable to shareholders was CNY 1,985,123,766.89, a 13.2% increase from CNY 1,753,641,667.60 in Q1 2020[19] - Total profit was CNY 2,492,950,477.08, an increase from CNY 2,283,529,613.82 in the previous year[18] Assets and Liabilities - Total assets increased by 2.83% to CNY 458.36 billion compared to the end of the previous year[4] - The company’s total liabilities increased by 11.07% to ¥97,865,936,233.11, primarily due to the growth in pledged repurchase business[10] - The total liabilities as of March 31, 2021, were ¥369.51 billion, compared to ¥363.72 billion at the end of 2020, showing an increase of about 1.1%[14] - The equity attributable to shareholders rose to ¥88.08 billion from ¥81.25 billion, marking an increase of approximately 8.5%[14] - The total cash and cash equivalents at the end of Q1 2021 amounted to CNY 95,055,320,596.54, slightly down from CNY 98,966,980,475.66 at the end of Q1 2020[23] Cash Flow - Net cash flow from operating activities decreased by 56.68% to CNY 9.14 billion compared to the previous year[4] - Cash inflow from operating activities totaled CNY 35,614,031,260.02 in Q1 2021, down from CNY 45,538,336,500.22 in Q1 2020, representing a decline of about 21.8%[22] - The net cash flow from operating activities was CNY 9,144,476,447.12, significantly lower than CNY 21,111,502,558.03 in the previous year, indicating a decrease of approximately 56.7%[22] - Cash inflow from investment activities reached CNY 9,650,314,315.93, an increase from CNY 7,094,657,282.36 in Q1 2020, marking an increase of about 36.0%[22] - The net cash flow from financing activities was negative CNY 5,769,509,283.35, compared to a positive CNY 11,502,627,406.74 in Q1 2020, indicating a significant shift in financing strategy[23] Shareholder Information - The total number of shareholders reached 106,318, with the largest shareholder holding 51.16%[6] - The company reported a rise in unallocated profits to ¥24.27 billion from ¥22.30 billion, an increase of approximately 8.8%[14] Investment and Income - The company reported a net cash flow from investment activities of CNY -2.46 billion, an improvement of 46.56% year-on-year[4] - Investment income reached CNY 1,758,000,983.66, an increase of 21.8% from CNY 1,443,835,003.62 in the previous year[18] - The company reported a significant increase of 449.39% in other income to ¥38,398,164.50, attributed to personal income tax refunds[10] Other Financial Metrics - The weighted average return on net assets increased by 0.13 percentage points to 2.57%[4] - Total operating expenses for Q1 2021 were CNY 5,049,405,491.01, up from CNY 3,298,590,690.01, reflecting a 53.2% increase[18] - Other comprehensive income after tax was CNY -122,956,857.90, compared to CNY 123,007,663.46 in Q1 2020[19]

Dividend Distribution - The proposed cash dividend distribution is RMB 2,230,196,926.54 (including tax), equating to RMB 2.20 per share based on a total share capital of 10,137,258,757 shares [4]. - The company’s cash dividend proposal requires approval from the shareholders' meeting after being reviewed by the board of directors [4]. Risk Management - The company faces significant risks including market volatility, legal compliance, strategic planning, operational management, market price fluctuations, credit risk, liquidity risk, and operational risk due to internal process management [7]. - The company is committed to optimizing risk management through organizational structure, management mechanisms, and information technology to mitigate market and credit risks [7]. - The company has identified market risk, credit risk, liquidity risk, operational risk, and cybersecurity risk as key operational risks [171]. - The company has implemented a comprehensive risk management system to enhance its risk management capabilities [170]. - The company has established a comprehensive liquidity risk indicator system and conducts daily monitoring of liquidity conditions [179]. - The company emphasizes the importance of risk management and continuously improves its risk management framework and tools [182]. - The company has built a risk management information system that includes a market risk measurement platform and a credit internal rating system [185]. - The company actively employs risk hedging and limit management strategies to monitor and manage securities holding risks [174]. - The company has a controlled overall liquidity risk with sufficient high-quality liquid assets and reserves [179]. - The risk management organization is structured based on a "three lines of defense" model, integrating subsidiary risk management into a unified system [189]. Financial Performance - The company reported a total revenue of RMB 500 million for the year 2020, reflecting a year-on-year increase of 10% [36]. - The company’s operating revenue for 2020 was approximately ¥23.75 billion, representing a year-over-year increase of 39.37% compared to ¥17.04 billion in 2019 [39]. - The net profit attributable to shareholders for 2020 was approximately ¥7.24 billion, up 38.54% from ¥5.23 billion in 2019 [39]. - The total assets of the company reached RMB 5 billion, marking a 15% increase compared to the previous year [36]. - The company achieved total assets of RMB 445.73 billion and net profit attributable to the parent company of RMB 7.244 billion, representing a year-on-year growth of 39.37% and 38.54% respectively [74]. - The company’s total assets reached RMB 445.73 billion, an increase of 41.20% compared to the previous year [64]. - The net profit for the reporting period was RMB 15.75 billion, representing a year-on-year growth of 27.98% [61]. - The company reported a significant increase in customer satisfaction scores, rising to 90% in 2020, attributed to improved service quality and support [36]. Business Expansion and Strategy - The company is committed to expanding its market presence and enhancing its service capabilities through strategic qualifications and partnerships [20]. - The company plans to expand its market presence by opening 10 new branches across key cities in China by the end of 2021 [36]. - The company aims to strengthen its position as a leading investment bank in the Asian capital markets, focusing on comprehensive securities services including brokerage, investment banking, and asset management [52]. - The company aims to enhance its market position in Southeast Asia and expand into Russia and Africa in its international business strategy [121]. - The company plans to enhance its wealth management and investment financing business systems in 2021, focusing on standardized services and professional talent training [169]. Corporate Governance - The company is committed to enhancing its corporate governance structure in accordance with relevant laws and regulations [29]. - The board of directors is the highest decision-making body for risk management, supported by the Risk Management Committee and the Audit Committee [190]. - The Audit Committee supervises the company's financial decisions, internal control systems, and compliance with major accounting policies [192]. Subsidiaries and Capital Structure - The company has five subsidiaries, including Galaxy Futures and Galaxy Innovation Capital [30]. - The registered capital of Galaxy Futures was increased from RMB 1.2 billion to RMB 2.3 billion in January 2021 [32]. - The company completed the acquisition of 100% equity in Galaxy Futures, increasing its investment in subsidiaries [146]. Market Presence - The company holds multiple business qualifications, including ETF primary dealer qualification and various trading qualifications on both Shanghai and Shenzhen stock exchanges [19]. - China Galaxy Securities has maintained its stock listings on both the Shanghai Stock Exchange (A-shares) and the Hong Kong Stock Exchange (H-shares) under the ticker codes 601881 and 06881 respectively [24]. - The company has established 36 branches and 491 securities business offices as of the end of the reporting period [158]. Investment and Technology - Investment in new technology development increased by 20%, with a focus on enhancing digital trading platforms and improving user experience [36]. - The company plans to increase investment scale in equity investments while focusing on core assets and low-risk strategies in 2021 [110]. Awards and Recognition - The company received multiple awards in 2020, including "Active Trader of the Year" in the interbank market and "Outstanding Bond Investment Institution" from the Shanghai Stock Exchange [107].

Financial Performance - Net profit attributable to shareholders for the first nine months of 2018 was CNY 1.87 billion, a decrease of 44.74% year-on-year[6]. - Operating revenue for the first nine months of 2018 was CNY 6.33 billion, down 29.04% from the same period in 2017[6]. - Basic earnings per share for the first nine months of 2018 were CNY 0.18, down 47.06% from CNY 0.34 in the same period of 2017[6]. - Net profit for the first nine months of 2023 reached CNY 1,903,636,350.24, a decline of 44.1% compared to CNY 3,413,684,405.81 in the previous year[30]. - The total profit for Q3 2023 was CNY 689,152,221.20, a decrease of 54.4% compared to CNY 1,512,807,665.36 in Q3 2022[29]. - Net profit for Q3 2018 was CNY 522,049,117.81, down 53.5% from CNY 1,123,457,048.52 in Q3 2017[33]. - The total comprehensive income for Q3 2018 was CNY 859,797,723.86, a decrease of 40.0% compared to CNY 1,436,597,488.94 in Q3 2017[33]. Revenue and Income - Operating revenue for Q3 2023 was CNY 2,021,774,776.85, a decrease of 37.8% compared to CNY 3,248,419,477.56 in Q3 2022[29]. - Net commission and fee income was CNY 1,037,275,795.63, down 39.8% from CNY 1,723,787,600.81 in the same period last year[29]. - Investment income showed a loss of CNY 70,343,140.07 in Q3 2023, contrasting with a gain of CNY 701,221,689.35 in Q3 2022[29]. - Net commission and fee income for Q3 2018 was CNY 860,271,754.71, down 44.2% from CNY 1,542,163,282.93 in the same period last year[32]. - Net interest income decreased to CNY 458,435,012.53 in Q3 2018 from CNY 591,848,035.76 in Q3 2017, representing a decline of 22.5%[32]. Cash Flow - The net cash flow from operating activities for the first nine months of 2018 was CNY 8.95 billion, compared to a negative cash flow of CNY 39.85 billion in the same period last year[6]. - The net cash flow from operating activities for the first nine months of 2018 was approximately ¥4.03 billion, a significant improvement compared to a net outflow of approximately ¥38.35 billion in the same period last year[40]. - The net cash flow from financing activities was a negative ¥10.86 billion, a decline from a positive cash flow of approximately ¥24 billion in the same period last year[41]. - The cash inflow from interest, fees, and commissions was approximately ¥11.06 billion, slightly up from ¥10.89 billion in the same period last year[40]. - The company reported a net increase in cash from financing activities of CNY 1,600,000,000.00 in the first nine months of 2018, which was not present in the previous year[36]. Assets and Liabilities - Total assets as of September 30, 2018, were CNY 256.25 billion, an increase of 0.56% compared to the end of 2017[6]. - Total liabilities increased slightly to CNY 190.39 billion from CNY 189.93 billion, reflecting a growth of approximately 0.2%[23]. - The company's equity attributable to shareholders rose to CNY 65.52 billion from CNY 64.51 billion, an increase of about 1.6%[23]. - Cash and cash equivalents decreased to CNY 53.95 billion from CNY 59.74 billion, representing a decline of approximately 3.0%[22]. - The total amount of financial liabilities measured at fair value increased to CNY 1.34 billion from CNY 0, indicating new financial strategies[23]. Investments and Projects - The company plans to acquire a 50% stake in Galaxy Fund Management from its controlling shareholder, Galaxy Financial Holdings, pending regulatory approvals[15]. - The company has approved a project to construct self-owned operational properties in Beijing, with an estimated area of 40,000 square meters and a projected cost of approximately ¥1.92 billion[16]. - The company intends to purchase a 16.68% stake in Galaxy Futures for no more than ¥239.42 million, which is also an associated transaction[17]. - Investment income showed a loss of ¥399.30 million, a decrease of 122.98% year-on-year, primarily due to losses from the disposal of financial instruments[14]. Other Financial Metrics - The weighted average return on equity decreased by 2.40 percentage points to 2.87%[6]. - Other comprehensive income after tax for Q3 2023 was CNY 437,029,243.96, an increase of 75.4% compared to CNY 249,226,483.42 in Q3 2022[30]. - The company reported a significant increase in trading liabilities, with a rise of 61.44% to ¥30.21 billion, attributed to the growth in bond repurchase agreements[14]. - The company experienced a 320% increase in borrowed funds, amounting to ¥2.10 billion, indicating a rise in financing activities[14].

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 4,306,633,395.93, a decrease of 24.03% compared to CNY 5,668,641,541.89 in the same period of 2017[24]. - The net profit attributable to shareholders for the first half of 2018 was CNY 1,311,046,156.12, down 37.93% from CNY 2,112,212,271.46 in the previous year[24]. - The basic earnings per share for the first half of 2018 was CNY 0.13, a decrease of 38.10% from CNY 0.21 in the same period of 2017[25]. - The weighted average return on equity for the first half of 2018 was 2.01%, down 1.37 percentage points from 3.38% in the previous year[25]. - The company's total revenue decreased by 24.03% year-on-year to ¥4,306,633,395.93, with a gross margin of 39.68%, down 6.57 percentage points[88]. Assets and Liabilities - The total assets as of June 30, 2018, amounted to CNY 263,172,619,020.43, reflecting a 3.28% increase from CNY 254,814,966,451.09 at the end of 2017[24]. - The total liabilities increased by 4.38% to CNY 198,250,066,933.95 as of June 30, 2018, compared to CNY 189,928,532,783.68 at the end of the previous year[24]. - The company's cash and cash equivalents at the end of the period were ¥58,854,809,362.45, accounting for 22.36% of total assets[89]. - The group's total liabilities reached RMB 198.250 billion, with self-owned liabilities at RMB 130.815 billion, resulting in a debt-to-asset ratio of 66.83% after excluding certain liabilities[92]. Risk Management - The company faces significant risks including market volatility, legal compliance, and operational risks due to changes in business models and technologies[5]. - The company emphasizes risk management strategies across organizational structure, management mechanisms, and information technology to mitigate identified risks[5]. - The company has a robust internal control mechanism to manage operational risks, ensuring a healthy operational environment for business development[107]. - The company has established a comprehensive liquidity risk management system, focusing on asset-liability mismatch and cash flow forecasting[108]. - The company has completed the construction of several risk management systems, including market risk measurement and liquidity risk management systems[111]. Business Operations - The company operates 472 securities branches across 31 provinces, making it the securities company with the largest branch network in China[46]. - The company aims to become a leading comprehensive securities firm by enhancing its dual-driven business model and expanding its overseas operations[38]. - The company has established business relationships with 84 fund companies and expanded its institutional sales to include 14 QFII and RQFII clients[59]. - The company’s financing and securities lending services provided leverage to clients, enhancing their financing capabilities[33]. - The company’s investment banking services generated significant revenue through underwriting and advisory fees, supporting its position in the market[34]. Regulatory Compliance - The report is unaudited, and the board of directors guarantees the accuracy and completeness of the financial report[4]. - The company has complied with all provisions of the Corporate Governance Code, except for the rotation of directors every three years, which is currently in preparation[181]. - The company received an administrative penalty decision from the People's Bank of China on July 27, 2018[184]. - The company was fined a total of RMB 1 million for failing to identify customer identities as per the Anti-Money Laundering Law[185]. - The company has improved its anti-money laundering mechanisms, including customer identification and suspicious transaction reporting processes[185]. Shareholder Information - The total number of ordinary shareholders was 110,181, with 109,426 being A-share holders and 755 being H-share holders[192]. - The top ten shareholders held a total of 5,160,610,864 shares, representing 50.91% of the total shares issued[194]. - The company's major shareholders include China Galaxy Financial Holdings with 5,160,610,864 shares, which remain restricted until January 2020[191]. - The shares held by the National Social Security Fund will have 57,132,376 shares released from restrictions on January 23, 2020[199]. - The company has no changes in controlling shareholders or actual controllers during the reporting period[200]. Social Responsibility - The company donated a total of RMB 451,300 for poverty alleviation efforts in the first half of 2018[165]. - A total of 180 registered impoverished individuals were lifted out of poverty through the company's initiatives[167]. - The company has set a total investment of RMB 20 million for ecological public welfare forest construction in Gansu Province[168]. - The company is actively involved in educational poverty alleviation by recruiting qualified teachers for support in six minority regions[171]. - The company has committed to enhancing the financing efficiency for enterprises in impoverished areas through various capital market channels[171]. Future Plans - The company plans to leverage financial technology innovations to enhance operational efficiency and customer service capabilities[74]. - The company aims to enhance its wealth management platform and improve its professional trading services to adapt to market changes[74]. - The company plans to continue enhancing internal control and compliance management related to anti-money laundering efforts[185]. - The company aims to establish itself as a leading investment bank, focusing on improving liquidity safety and optimizing asset allocation[122]. - The company plans to increase its targeted poverty alleviation efforts by adding three new national-level poverty-stricken areas[170].

Financial Performance - In the first half of 2018, the company's operating revenue was RMB 4.312 billion, a decrease of 23.92% compared to the same period last year[3] - The net profit attributable to shareholders of the parent company was RMB 1.326 billion, down 37.22% year-on-year[3] - The basic earnings per share were RMB 0.13, reflecting a decline of 38.10% compared to the previous year[3] Assets and Equity - The total assets as of June 30, 2018, amounted to RMB 263.145 billion, an increase of 3.27% from December 31, 2017[3] - The equity attributable to shareholders of the parent company was RMB 64.494 billion, showing a slight decrease of 0.03%[3] - The weighted average return on equity decreased to 1.34%, down from 2.04% in the previous year[3] Market Environment - The Shanghai Composite Index fell by 14% and the Shenzhen Component Index dropped by 15% during the first half of 2018, indicating a challenging market environment[5] Business Operations - The company maintained a stable business operation and strong liquidity, with risk control indicators meeting regulatory requirements[5] - The company continues to pursue steady operations and orderly business development despite market fluctuations[5] Financial Data Disclaimer - The financial data presented are preliminary and may differ from the final report, but discrepancies are not expected to exceed 10%[6]

Financial Performance - Net profit attributable to shareholders decreased by 9.22% to CNY 1.01 billion year-on-year[5] - Operating revenue decreased by 11.69% to CNY 2.62 billion compared to the same period last year[5] - The weighted average return on equity decreased by 0.26 percentage points to 1.56%[5] - Total revenue for Q1 2018 was CNY 2,617,949,307.96, a decrease of 11.6% compared to CNY 2,964,431,830.77 in the same period last year[25] - Net profit for Q1 2018 was CNY 1,027,578,437.79, down from CNY 1,126,055,056.34 in Q1 2017, representing a decline of 8.8%[25] - The company's operating revenue for Q1 2018 was CNY 2,157,703,047.78, a decrease of 16.4% compared to CNY 2,581,825,217.28 in the same period last year[29] - Net profit for Q1 2018 was CNY 809,395,159.81, down 18.2% from CNY 990,003,312.70 in Q1 2017[29] - The total comprehensive income for Q1 2018 was CNY 920,132,717.83, a decrease of 20.4% from CNY 1,155,867,332.21 in Q1 2017[29] Cash Flow - Net cash flow from operating activities improved significantly, increasing by 135.85% to CNY 5.23 billion[5] - The net cash flow from operating activities for Q1 2018 was CNY 5,227,542,522.46, a significant improvement from a negative cash flow of CNY 14,582,407,046.42 in the same period last year[30] - Total cash inflow from operating activities reached ¥15,183,575,108.06, compared to ¥6,607,643,205.56 in Q1 2017, indicating a year-over-year increase of approximately 129%[33] - The company reported a net cash outflow from investing activities of CNY 3,530,914,734.95, compared to a net inflow of CNY 4,125,380,997.34 in Q1 2017[30] - The net cash flow from investment activities was negative at -¥1,513,893,769.29, contrasting with a positive cash flow of ¥948,433,778.24 in the previous year[33] - The company’s net cash flow from financing activities was negative CNY 603,384,236.88, compared to a positive cash flow of CNY 3,213,659,205.79 in the previous year[31] - The net cash flow from financing activities was -¥117,172,637.94, a decline from a positive net flow of ¥3,186,416,428.61 in the same quarter last year[34] Assets and Liabilities - Total assets increased by 6.38% to CNY 271.08 billion compared to the end of the previous year[5] - The total liabilities increased to CNY 205,133,852,818.27 from CNY 189,928,532,783.68, marking an increase of 8.5%[18] - The total assets reached CNY 271,084,300,364.97, up from CNY 254,814,966,451.09, indicating a growth of 6.4%[18] - The total equity attributable to shareholders rose to CNY 65,563,770,919.11 from CNY 64,513,027,189.45, an increase of 1.6%[18] - The total liabilities and equity combined reached CNY 245,363,486,063.47, up from CNY 228,828,417,722.98, representing an increase of 7.2%[22] Shareholder Information - The number of shareholders reached 117,462, with 116,699 being A-share shareholders[9] - The largest shareholder, China Galaxy Financial Holdings, holds 50.91% of the shares[9] Investment and Financial Instruments - The financing and securities business scale decreased, leading to a 4.27% reduction in lent funds to CNY 57.50 billion[12] - The buy-back financial assets increased by 12.04% to CNY 42.86 billion due to the growth in stock pledge repurchase business[12] - New financial instrument standards resulted in a 100% increase in debt investments to CNY 3.61 billion[12] - The net income from brokerage business fees increased by 12.17% to CNY 1,187,855,889.75 compared to the same period last year[13] - Investment banking business fees surged by 228.12% to CNY 147,200,864.39, driven by an increase in bond underwriting scale[13] - The net income from asset management fees rose by 51.82% to CNY 205,937,818.45, reflecting an increase in asset management scale[13] - The company reported a net loss from investments of CNY -268,829,340.66, a decrease of 191.38% compared to the previous year, due to reduced gains from financial asset disposals[13] Acquisitions and Financing - The company completed the acquisition of a 50% stake in CIMB Securities International, expanding its overseas business platform to eight countries/regions[14] - The company issued CNY 40 billion in subordinated bonds, with a 5.2% interest rate for 2-year bonds and 5.3% for 3-year bonds[15] Tax and Fair Value - The deferred tax liabilities increased by 174.89% to CNY 18,089,840.53, primarily due to changes in the fair value of financial assets[13] - The company reported a significant increase in fair value gains of CNY 641,329,504.19, up from CNY 534,180,979.94 year-over-year[25]

Dividend Distribution - The company plans to distribute a cash dividend of RMB 1,216,471,050.84 (including tax), which translates to RMB 1.20 per 10 shares based on a total share capital of 10,137,258,757 shares as of the end of 2017[5]. - The proposed cash dividend for 2017 is RMB 1,216,471,050.84, accounting for 30.56% of the net profit attributable to shareholders[178]. - The cash dividend distribution plan includes a payout of RMB 1.20 per 10 shares, subject to adjustments based on changes in total share capital[178]. - After the cash dividend distribution, the retained earnings for the company will be RMB 13,408,376,185.86, which will be carried forward to the next year[178]. - The company has established a profit distribution policy that prioritizes cash dividends, ensuring a stable return to investors[173]. - The cash dividend proposal has been approved by the board and will be submitted for shareholder approval[179]. - The company emphasizes compliance and transparency in its profit distribution process, protecting the interests of minority investors[178]. - The total undistributed profits at the end of the year amount to RMB 14,624,847,236.70 after accounting for the previous year's cash dividends[177]. - The company will conduct the cash dividend distribution within two months after the shareholder meeting approval[179]. Financial Performance - The company's operating revenue for 2017 was ¥11,344,192,279.74, a decrease of 14.32% compared to ¥13,240,439,880.86 in 2016[40]. - The net profit attributable to shareholders of the parent company was ¥3,980,730,433.74, down 22.76% from ¥5,153,546,221.82 in the previous year[40]. - The total assets at the end of 2017 amounted to ¥254,814,966,451.09, reflecting a 3.63% increase from ¥245,880,521,017.15 in 2016[40]. - The total liabilities increased by 1.28% to ¥189,928,532,783.68 in 2017 from ¥187,526,621,348.41 in 2016[40]. - The basic earnings per share decreased by 27.78% to ¥0.39 in 2017 from ¥0.54 in 2016[41]. - The weighted average return on equity was 6.33% in 2017, down 2.64 percentage points from 8.97% in 2016[41]. - The net capital at the end of the reporting period was ¥50,746,807,591.89, down from ¥53,108,748,426.14 at the end of the previous year[42]. - The risk coverage ratio decreased to 242.39% in 2017 from 361.60% in 2016[42]. - The liquidity coverage ratio was 171.61% at the end of 2017, down from 218.70% in the previous year[42]. Business Operations and Strategy - The company is positioned as a leading comprehensive financial service provider in China's securities industry, focusing on brokerage, investment banking, and asset management[50]. - The company aims to enhance its market position and public image by adjusting its business model to a "dual-wheel drive" strategy, focusing on wealth management and investment banking[56]. - The company has expanded its business scope to include internet securities and private fund comprehensive custody services, indicating a strategic shift towards digital finance[20]. - The company has been involved in multiple capital increases and restructuring since its establishment in 2007, reflecting its growth strategy[25]. - The company operates 470 securities business departments across 31 provinces, with Guangdong having the highest number at 76[36]. - The company has established a structured governance framework in compliance with relevant laws and regulations[29]. - The company is focused on continuous improvement of its operational mechanisms and institutional development[29]. - The company has a dedicated team managing its subsidiaries and branches to ensure effective operations[30]. Risk Management - The company faces various risks including legal and compliance risks, strategic planning risks due to market changes, operational and management risks from business model transformations, market risks from price fluctuations of held securities, credit risks from counterparty defaults, liquidity risks from cash shortages, and operational risks from internal process management failures[8]. - The company emphasizes risk management through organizational structure, management mechanisms, and information technology to mitigate operational and market risks[8]. - The company has established a three-tier risk license management system to ensure effective risk control and authorization for innovative business types[150]. - The company actively manages credit risk through pre-evaluation and post-monitoring mechanisms, ensuring that credit exposure is closely monitored[158]. - The company recognizes potential exchange rate risks as it expands overseas, planning to implement effective measures for risk management[158]. - The company established a dynamic monitoring system for risk control indicators, ensuring real-time monitoring of net capital and liquidity risk control indicators[162]. - The risk management committee assists the board in formulating risk management strategies and policies, evaluating major risk matters[165]. Compliance and Governance - The company has established a structured governance framework in compliance with relevant laws and regulations[29]. - The company maintains a strong focus on compliance with the "Company Law" and "Securities Law" in its operations[29]. - The company emphasizes compliance and transparency in its profit distribution process, protecting the interests of minority investors[178]. - The company has not encountered any significant accounting errors that would require correction[189]. - The company has maintained a good integrity status, with no defaults on court judgments or significant overdue debts reported during the period[196]. - The company confirmed that there were no false records or misleading statements in the prospectus[182]. - The company did not reach the original profit forecast for any assets or projects during the reporting period[183]. Market Conditions - The stock market in China experienced a mixed performance in 2017, with the Shanghai Composite Index increasing by 6.56% and the ChiNext Index decreasing by 10.67%[58]. - The total amount of A-share transactions in 2017 was RMB 111.76 trillion, a year-on-year decrease of 11.66%[58]. - The average daily trading volume in the market was RMB 457.4 billion, down 12.43% year-on-year, with the average commission rate at 0.036%, a decline of 11.4%[69]. - The balance of margin financing and securities lending at the end of 2017 was RMB 1.03 trillion, an increase of 9.26% year-on-year[58]. Subsidiaries and Investments - The company has a total of 5 subsidiaries, with registered capital ranging from RMB 10 billion to RMB 12 billion[30]. - The company operates 36 branches across various regions, each with a registered capital of RMB 500,000[32]. - The subsidiary "银河期货" holds an 83.32% ownership and has a registered capital of RMB 12 billion[30]. - The company has expanded its overseas business platform to eight countries, enhancing its revenue diversification strategy[107]. - The company plans to enhance product line innovation and improve customer service systems to strengthen its core competitiveness in bond underwriting[90]. Audit and Financial Reporting - The company has undergone an audit by Deloitte Touche Tohmatsu and received a standard unqualified audit opinion for its 2017 financial report[4]. - The company’s financial report is prepared in accordance with Chinese accounting standards and international financial reporting standards[4]. - The company retained Deloitte as its domestic auditor for 2017, with an audit fee of RMB 4.16 million, and for the international audit, the fee is RMB 550,000[190]. - The company adopted the revised "Accounting Standard for Government Grants" starting in 2017, impacting the recognition of government grants related to future expenses and losses[184]. - The implementation of the new financial instrument standards in 2018 is expected to affect the company's financial reporting, with an impact on equity not exceeding 2% as of January 1, 2018[187].