东北证券 股票代码：000686 2020年 一季度报告 东北证券股份有限公司 NORTHEAST SECURITIES CO.,LTD. 2020年4月 cninf 5 巨瓣资讯 www.cninfo.com.cn CONTENTS 目录 ○ 重要提示 ………………… …… 01 ○ 公司基本情况 ………………… …… 02 重要事项 …………… ………………… 05 C 财务报表 ………………………… ………… 10 cninf 5 www.cninfo.com.cn 重要提示 ● >> 本公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整，不存在虚假记载、 误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 本报告经公司第九届董事会第十四次会议审议通过。公司13名董事中，实际出席会议的董事13名。除下列董事 外，其他董事亲自出席了审议本报告的董事会会议： | --- | --- | --- | --- | |--------------------|--------------------|--------------------|--------------| | 未亲自 ...

Financial Overview - The total registered capital of Northeast Securities is RMB 2,340,452,915[9]. - The net capital of the company stands at RMB 13,132,950,122.28[9]. - The company's total revenue for 2019 reached ¥7,968,795,586.85, representing a year-over-year increase of 17.53% compared to ¥6,780,105,834.67 in 2018[21]. - Net profit attributable to shareholders was ¥1,007,080,243.05, a significant increase of 234.19% from ¥301,352,976.41 in the previous year[21]. - The net cash flow from operating activities surged to ¥7,828,127,331.59, a remarkable increase of 1194.76% compared to -¥715,055,619.19 in 2018[21]. - The total assets at the end of 2019 were ¥68,217,925,983.72, reflecting a growth of 4.91% from ¥65,022,874,039.77 in 2018[21]. - The total liabilities increased by 6.48% to ¥52,068,101,464.68 from ¥48,899,030,577.60 in the previous year[21]. - The company's basic earnings per share rose to ¥0.43, marking a 230.77% increase from ¥0.13 in 2018[21]. - Cash and cash equivalents at the end of 2019 amounted to ¥18,675,125,693.90, a 61.41% increase from ¥11,569,794,622.18 in 2018[22]. Business Operations - The company operates in various sectors including securities brokerage, investment consulting, and securities underwriting, with no changes in main business during the reporting period[9]. - As of the report date, Northeast Securities has established 140 branches across 68 major cities in 28 provinces, including 41 subsidiaries and 99 securities business departments[16]. - The company has established subsidiaries with specific qualifications, such as private investment fund management and financial futures brokerage, to strengthen its market position[12]. - The company is actively expanding its qualifications across different financial services, positioning itself for future growth and market opportunities[12]. - The company has built a robust marketing network with 140 branches across 68 major cities in China, enhancing its market presence and customer resource accumulation[43]. Risk Management - The company has established a comprehensive risk management system to address market, credit, liquidity, and operational risks[8]. - The risk coverage ratio improved significantly to 260.92%, up by 86.86% from 174.06% in 2018[34]. - The company monitors liquidity risk in real-time, ensuring that available funds cover future external funding needs, with all liquidity indicators in a safe state[123]. - The company has developed a money laundering risk management system, incorporating internal controls and ongoing training to foster a culture of prevention[127]. - The company will continue to face various risks, including market, credit, liquidity, and compliance risks, and will implement measures to mitigate these risks[118]. Shareholder Information - The total number of shares as of December 31, 2019, was 2,340,452,915[143]. - The company did not propose any stock dividends or capital increases during the reporting period[143]. - The cash dividend payout ratio for 2019 was 100% of the total distributable profit[143]. - The independent directors confirmed compliance with the decision-making process regarding the cash dividend policy[140]. - The largest shareholder, Jilin Yatai Group Co., Ltd., holds 30.81% of the shares, totaling 721,168,744 shares, with 629,163,954 shares pledged[194]. Compliance and Legal Matters - The company has not faced any penalties or rectification issues during the reporting period[159]. - The company did not have any major litigation or arbitration cases exceeding RMB 10 million during the reporting period[157]. - The company has confirmed an estimated liability of 3.312 million yuan related to ongoing litigation as of the report date[158]. - The company has ongoing litigation regarding a stock pledge repurchase contract, with a priority claim on 9,887,000 shares of stock, and the execution process is still in progress[158]. - The company has initiated litigation against Ningbo Saike and its guarantor Beijing Saibole Green Science and Technology for the total amount owed, which has been accepted by the Changchun Intermediate People's Court[187]. Corporate Social Responsibility - The company has invested RMB 2.1 million in the "Northeast Securities融•New Hope Public Welfare Fund" to support impoverished students[171]. - A total of 57 registered impoverished individuals have been lifted out of poverty through the company's initiatives[171]. - The company organized a financing platform and training for enterprises in impoverished counties, enhancing their governance structure[169]. - The company received the "Organizational Innovation Award" at the 2019 Jilin Province Poverty Alleviation Awards[171]. - The company continues to implement targeted poverty alleviation plans in Jilin Province, focusing on industrial, consumption, public welfare, and intellectual poverty alleviation efforts[172].

Financial Performance - Operating revenue for Q3 2019 reached ¥2,367,283,373.05, representing a year-on-year increase of 13.79%[2] - Net profit attributable to shareholders was ¥278,173,862.75, reflecting a significant increase of 1,143.78% year-on-year[2] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥274,093,809.16, up 1,412.30% compared to the same period last year[2] - Basic earnings per share for the reporting period was ¥0.12, an increase of 1,100.00% year-on-year[2] - The company's net profit rose by 214.85% to ¥884,772,136.33, driven by revenue growth[9] - Net profit for Q3 2019 reached RMB 280,633,243.96, significantly up from RMB 22,525,108.95 in the same period last year, marking a growth of 1,146.5%[23] - Net profit reached RMB 884,772,136.33, a significant increase from RMB 281,017,113.08 in Q3 2018, representing a growth of 214.5%[25] - The total comprehensive income for the quarter was RMB 702,947,857.51, compared to a loss of RMB -259,913,261.72 in the previous year, showcasing a turnaround in financial performance[26] Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥64,584,932,354.84, a decrease of 0.67% compared to the end of the previous year[2] - The company's total share capital as of the last trading day before disclosure was 2,340,452,915 shares[3] - The company's total liabilities increased by 48.95% to ¥10,977,647,042.01, primarily due to an increase in subordinated debt[9] - As of September 30, 2019, total liabilities amounted to RMB 48.01 billion, a decrease of 1.8% from RMB 48.90 billion on December 31, 2018[20] - The company's total assets were RMB 60.21 billion as of September 30, 2019, compared to RMB 60.91 billion at the end of 2018, reflecting a decline of 1.2%[21] - Total liabilities amounted to ¥46,657,082,016.01, showing a decrease of ¥32,660,141.26 compared to the previous period[33] Cash Flow - The company reported a net cash flow from operating activities of ¥2,739,185,424.60, which is an increase of 157.28% year-on-year[2] - Cash flow from operating activities generated a net inflow of RMB 2,739,185,424.60, compared to RMB 1,064,681,202.20 in the previous year, showing a significant improvement[27] - The net cash flow from operating activities for the current period is ¥2,742,368,076.09, a significant increase from ¥618,526,065.09 in the previous period[28] - The total cash inflow from financing activities reached ¥18,491,860,000.00, compared to ¥14,446,152,955.20 in the prior period, indicating a growth of approximately 28.3%[28] Investments and Financial Instruments - The company's derivative financial assets increased by 624.52% to ¥13,087,052.00, reflecting an increase in investment in derivative financial instruments[9] - The company reported a net profit from securities investments for the period was RMB 970,185,798.60[15] - The financial investments totaled CNY 27,721,983,191.11, with an increase of CNY 263,149,400.17 compared to the previous period[32] Shareholder Information - The top ten shareholders held a total of 30.81% of the shares, with Jilin Yatai Group Co., Ltd. being the largest shareholder[5] - The company did not have any overdue commitments from controlling shareholders or related parties during the reporting period[14] - There were no instances of non-operational fund occupation by controlling shareholders or related parties during the reporting period[18] Operational Developments - The company established a new branch in Beijing for fixed income securities trading, approved on July 25, 2019[10] - The company completed the relocation of three business outlets during the reporting period[10] - The company plans to continue expanding its market presence and enhancing its product offerings in the upcoming quarters[23]

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 3,879,881,169.27, representing an increase of 88.05% compared to CNY 2,056,700,776.11 in the same period last year[11]. - The net profit attributable to shareholders of the listed company reached CNY 589,740,750.22, a significant increase of 137.25% from CNY 248,576,087.92 in the previous year[11]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 576,907,744.95, up 147.51% from CNY 233,088,232.73 year-on-year[11]. - The net cash flow from operating activities was CNY 4,293,010,292.01, an increase of 63.28% compared to CNY 2,629,247,555.92 in the same period last year[11]. - The total operating profit for the first half of 2019 was RMB 767,968,543.10, reflecting a significant increase of 154.62% from RMB 301,618,804.43 in the first half of 2018[50]. - The company reported a significant increase in other business income, which reached RMB 1,914,469,207.24, compared to RMB 814,025,946.08 in the previous year[165]. - The total operating revenue for the first half of 2019 reached RMB 1,569,094,426.78, a significant increase of 93.5% compared to RMB 811,042,387.25 in the same period of 2018[166]. - Net profit for the first half of 2019 was RMB 494,522,774.85, up 223.5% from RMB 152,937,828.29 in the first half of 2018[166]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 72,620,361,603.57, reflecting an increase of 11.68% from CNY 65,022,874,039.77 at the end of the previous year[11]. - The total liabilities amounted to CNY 56,326,175,937.11, which is a 15.19% increase from CNY 48,899,030,577.60 at the end of the previous year[11]. - The net assets attributable to shareholders of the listed company were CNY 15,212,799,472.66, showing a slight increase of 1.18% from CNY 15,035,425,060.52 at the end of the previous year[11]. - The company's total assets at the end of the reporting period amounted to ¥68,538,334,590.46, reflecting a 12.52% increase from the end of the previous year[12]. - The total liabilities at the end of the reporting period were ¥54,184,625,549.63, which is a 16.13% increase compared to the end of the previous year[12]. - The company's asset-liability ratio, excluding client transaction settlement funds, was 71.89%, an increase compared to the beginning of the year, primarily due to the issuance of subordinated debt[52]. Earnings and Profitability - Basic earnings per share were CNY 0.25, up 127.27% from CNY 0.11 in the same period last year[11]. - Diluted earnings per share also stood at CNY 0.25, reflecting the same growth of 127.27% compared to CNY 0.11 in the previous year[11]. - The weighted average return on net assets was 3.90%, an increase of 2.30% from 1.60% in the same period last year[11]. - The company recorded a total profit of RMB 782,832,587.28, an increase of 149.0% from RMB 314,686,809.96 in the first half of 2018[165]. - The net profit attributable to the parent company was RMB 589,740,750.22, up 137.0% from RMB 248,576,087.92 in the first half of 2018[165]. Cash Flow - The net cash flow from operating activities for the first half of 2019 was RMB 4,293,010,292.01, an increase of 63.3% compared to RMB 2,629,247,555.92 in the same period of 2018[167]. - Total cash inflow from operating activities decreased to RMB 10,366,439,150.74, down 11.7% from RMB 11,740,569,421.71 in the first half of 2018[167]. - Cash outflow from operating activities decreased significantly to RMB 6,073,428,858.73, a reduction of 33.1% compared to RMB 9,111,321,865.79 in the previous year[167]. - The ending cash and cash equivalents balance increased to RMB 17,814,612,032.73, compared to RMB 14,989,288,859.18 at the end of the first half of 2018[167]. Business Segments and Operations - The company aims to enhance its position as a comprehensive financial service provider focusing on small and medium-sized enterprises[18]. - The company plans to continue expanding its business segments, including retail, investment banking, and asset management, to meet diverse client needs[19]. - The company operates 48 branches and 103 securities business departments, covering 67 major cities across 28 provinces, providing a robust marketing network[24]. - The company’s asset management business has stabilized and is showing signs of recovery in active management scale[27]. - Securities brokerage revenue increased by 23.39% year-on-year, with an operating profit margin up by 8.37%[30]. Risk Management - The company has established a comprehensive risk management system to ensure compliance and effective risk control[25]. - The company has identified various risks including market risk, credit risk, liquidity risk, operational risk, compliance risk, and money laundering risk, and is enhancing its risk management framework[63][65]. - The company is implementing measures to strengthen market risk management, including diversified asset allocation and the use of VAR for quantifying market risks[67]. - Credit risk management is being improved through internal credit ratings and strict approval processes to mitigate potential losses[68]. - The company has strengthened liquidity risk management by monitoring financing sources and liquidity assets in real-time, ensuring that available funds cover future external funding needs[69]. Shareholder and Corporate Governance - During the reporting period, the company held two shareholder meetings with participation rates of 47.42% and 44.98% respectively, indicating active shareholder engagement[74]. - The company reported no significant litigation or arbitration matters exceeding 10 million yuan that would impact its financial status during the reporting period[77]. - The company has ongoing litigation related to stock pledge agreements and is actively pursuing legal remedies for breaches of contract[78]. - The company has not reported any significant adverse impact on its operational capabilities or debt repayment abilities due to the increase in borrowings[159]. Social Responsibility and Community Engagement - The company has implemented a "one county, one enterprise" assistance action to support poverty alleviation in Jilin Province[97]. - The company organized volunteer activities to provide educational support and financial literacy education to impoverished students[98]. - The company invested a total of 2.32 million yuan in poverty alleviation efforts, including 2.12 million yuan for improving educational resources in impoverished areas[99]. - The company aims to enhance industrial poverty alleviation by providing financial support to enterprises in impoverished counties, facilitating their access to multi-level capital markets[100]. Regulatory Compliance and Legal Matters - The company faced a penalty from the China Securities Regulatory Commission, with a fine of 1.8 million CNY imposed on Da Xin Accounting Firm for audit misconduct[121]. - The company has not reported any significant penalties or rectifications during the reporting period[89]. - The company has initiated legal actions to recover financial advisory fees and principal from Shandong Haiyibao Aquatic Products Co., Ltd., totaling 162.45 million yuan[83]. Financial Instruments and Accounting Policies - The company has made changes to its accounting policies in accordance with the revised financial instrument standards issued by the Ministry of Finance[110]. - The company’s fundraising from the 2019 subordinated bonds was used to adjust its debt structure and invest in high-security, liquid financial products[146]. - The company has established measures for debt repayment assurance, including not distributing profits to shareholders and postponing major investments if unable to repay[151].

Financial Performance - The company's operating revenue for Q1 2019 was ¥2,275,771,875.87, representing a 140.70% increase compared to the same period last year[2] - Net profit attributable to shareholders was ¥567,906,600.98, a significant increase of 327.30% year-over-year[2] - Basic earnings per share (EPS) was ¥0.24, up 300.00% from ¥0.06 in the same quarter last year[2] - Total profit increased by 341.89% to ¥764,626,447.74 from ¥173,035,841.19, driven by significant revenue growth[8] - Net profit for Q1 2019 was RMB 582.63 million, compared to RMB 139.54 million in the same period last year, indicating a year-over-year increase of about 318%[23] - The company reported a total comprehensive income of RMB 600.60 million, compared to a loss of RMB 71.62 million in the previous year[23] Cash Flow - The net cash flow from operating activities reached ¥5,432,534,138.01, marking a remarkable increase of 916.02% compared to the previous year[2] - Total cash inflow from operating activities reached CNY 13,844,075,023.55, compared to CNY 8,653,060,284.79 in the prior year, indicating a year-over-year increase of about 60%[25] - Cash outflow from operating activities was CNY 8,411,540,885.54, slightly higher than CNY 8,118,374,404.13 from the previous year, reflecting a 3.6% increase[25] - The net cash flow from investing activities was negative at CNY -178,630,030.96, a decline from a positive CNY 136,116,853.64 in the same quarter last year[25] - Cash inflow from financing activities totaled CNY 4,158,520,000.00, down from CNY 6,500,000,000.00 in the previous year, representing a decrease of approximately 36%[26] Assets and Liabilities - Total assets at the end of the reporting period were ¥72,473,147,207.04, an increase of 11.46% from the end of the previous year[2] - The total liabilities increased to ¥55,944,890,776.26 from ¥48,899,030,577.60, representing a growth of approximately 14.2%[20] - The total owner's equity increased to ¥16,528,256,430.78 from ¥16,123,843,462.17, showing a rise of about 2.5%[20] - The total amount of client funds deposits rose to ¥11,886,620,092.56 from ¥7,621,682,243.91, an increase of approximately 56.5%[21] - The total assets reached ¥72,473,147,207.04, up from ¥65,022,874,039.77, indicating an increase of about 11.2%[20] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 105,950, with the top ten shareholders holding significant stakes[5] - The largest shareholder, Jilin Yatai Group Co., Ltd., held 30.81% of the shares, amounting to 721,168,744 shares[5] - The total equity attributable to shareholders increased to ¥15,434,700,048.12 from ¥15,035,425,060.52, reflecting a growth of about 2.7%[20] Investment and Income - The company reported investment income from trading financial assets and derivatives of ¥86,185,209.71, and fair value changes of ¥970,058,046.41, both classified as regular income due to the nature of the business[4] - Other business income increased by 178.84% to ¥865,686,475.12 from ¥310,461,562.94, reflecting growth in futures and spot trading business revenue[8] - The fair value change income surged to RMB 970.06 million, compared to RMB 92.10 million in the previous year, marking an increase of over 950%[23] Employee Compensation - Employee compensation payable rose by 32.07% to ¥897,022,021.19 from ¥679,227,555.34, indicating an increase in payable employee wages[7] - The company's employee compensation liabilities increased to ¥897,022,021.19 from ¥679,227,555.34, marking a rise of about 32.2%[20] Compliance and Governance - The company has not reported any significant litigation or arbitration matters exceeding ¥10 million during the reporting period[12] - The company did not undergo an audit for the first quarter report[33]

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion in Q3 2023[22]. - The company’s operating revenue for 2018 was ¥6,780,105,834.67, representing a 37.40% increase compared to ¥4,926,111,998.63 in 2017[26]. - The net profit attributable to shareholders for 2018 was ¥301,352,976.41, a decrease of 54.82% from ¥666,946,558.98 in 2017[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥249,595,942.64, down 61.43% from ¥647,204,991.44 in 2017[26]. - The net cash flow from operating activities for 2018 was -¥715,055,619.19, a significant decline from ¥4,500,970,534.71 in 2017, representing a 115.89% decrease[26]. - The basic earnings per share for 2018 was ¥0.28, a decrease of 53.57% compared to ¥0.13 in 2017[26]. - The diluted earnings per share for 2018 was also ¥0.28, reflecting the same percentage decrease of 53.57% from ¥0.13 in 2017[26]. - The weighted average return on equity for 2018 was 1.96%, down from 4.26% in 2017, indicating a decline of 2.30%[26]. - The company reported a net profit of ¥311,954,563.76 for the year, down 55.61% from the previous year[30]. - The company's net profit for 2018 was RMB 301 million, significantly impacted by changes in margin requirements and trading asset scales[58]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 1.00 per 10 shares, totaling RMB 234,045,291.50, based on a total share count of 2,340,452,915 as of December 31, 2018[2]. - The cash dividend for 2017 was also CNY 1.00 per share, amounting to CNY 234.0453 million, which accounted for 35.09% of the net profit[124]. - The company has maintained a consistent cash dividend policy over the past three years, with the same amount distributed each year[123]. - The company declared a cash dividend of 1.00 CNY per 10 shares, totaling 234,045,291.50 CNY, which represents 100% of the distributable profit[125]. Risk Management - The company emphasizes the importance of risk management, addressing market, credit, liquidity, compliance, and operational risks through a comprehensive risk management system[6]. - The company has issued a risk warning regarding forward-looking statements in the annual report, advising investors to maintain awareness of potential risks[2]. - The company has established a risk control monitoring system centered on net capital and liquidity, ensuring compliance with regulatory standards throughout the reporting period[112]. - The company has implemented a dynamic monitoring mechanism for risk control indicators, with specific standards and warning thresholds set for net capital and liquidity[112]. - The company has developed a comprehensive risk management framework, emphasizing risk identification, assessment, response, monitoring, and reporting[113]. - The company has established a four-level, three-line defense risk management organizational structure to enhance oversight and risk management effectiveness[114]. - The company has implemented a risk preference management system, with risk limits established and monitored across various business lines[115]. - The company has strengthened its risk management foundation by hiring specialized personnel and enhancing its risk management information systems[115]. - The company emphasizes a risk culture where "risk management is everyone's responsibility," integrating it into the overall corporate culture[116]. Corporate Governance - The company’s board of directors consists of 13 members, all of whom attended the meeting to approve the annual report[1]. - The company’s organizational structure is designed to comply with the Company Law and Securities Law, ensuring effective governance[16]. - The company has a dedicated research and consulting branch located in Shanghai, established on January 29, 2013[16]. - The company’s governance structure is aimed at maintaining compliance and operational effectiveness in the financial sector[16]. - The company has adhered to commitments regarding the reduction and regulation of related party transactions, ensuring fair and legal procedures[128]. - The company has maintained compliance with all commitments made by its directors and senior management[129]. Market Position and Expansion - The company aims to enhance its position as a comprehensive financial service provider focusing on small and medium-sized enterprises, with a diversified business model including retail, investment banking, trading, and asset management[41][42]. - The company continues to focus on expanding its branch network to improve customer access and operational efficiency[17]. - The company has established a diversified financial service platform with a focus on customer needs, enhancing its competitive edge in the market[47]. - The company is actively enhancing its financing capabilities and improving the efficiency of fund utilization, while also investing in financial technology to support stable operations[52]. - The company is committed to expanding its international presence and accelerating its globalization efforts[101]. Legal and Compliance Issues - The company has not experienced any non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[129]. - The company has not faced any situations that could lead to suspension or termination of its listing following the annual report disclosure[133]. - The company has not engaged in any asset or equity acquisition or sale transactions during the reporting period[157]. - The company has no significant related party transactions that could harm the interests of the company and its shareholders[157]. - The company has not provided any external guarantees during the reporting period[160]. Social Responsibility and Community Engagement - The company actively supports poverty alleviation efforts, focusing on industry, consumption, and education[165]. - A total of 1.2 million RMB is planned to be invested in the "Northeast Securities Inspirational Class" over three years to assist students from impoverished households[166]. - The company has established a "headquarters + localization + full industry chain" team to support enterprises in poverty-stricken areas[165]. - The company has implemented intellectual poverty alleviation initiatives to enhance the capabilities of local governments and enterprises in poverty alleviation[167]. - The company donated 47,000 CNY to improve educational resources in impoverished areas, including 45,000 CNY for supplies for left-behind children[170].

Financial Performance - Operating revenue for Q3 2018 reached CNY 2.08 billion, a 43.93% increase year-on-year[3] - Net profit attributable to shareholders decreased by 93.22% to CNY 22.37 million in Q3 2018[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 94.42% to CNY 18.12 million[3] - The weighted average return on net assets was 0.15%, down by 1.95% compared to the same period last year[3] - Cash flow from operating activities decreased by 57.71% to CNY 1.06 billion for the year-to-date[3] - Investment income decreased by 32.60% to approximately 711.83 million, reflecting a decline in securities investment returns[14] - Other business income increased by 69.25% to approximately 2.28 billion, supported by growth in Bohai Futures' spot business[14] - Asset impairment losses surged by 699.99% to approximately 115.45 million, primarily due to increased impairment losses on available-for-sale financial assets and inventory[14] - The company’s net profit for the year is expected to remain stable without significant fluctuations compared to the previous year[26] Assets and Shareholder Information - Total assets increased by 5.70% to CNY 63.35 billion compared to the end of the previous year[3] - The number of ordinary shareholders at the end of the reporting period was 112,670[8] - The largest shareholder, Jilin Yatai Group, holds 30.81% of the shares, totaling 721,168,744 shares[10] - The total number of shares outstanding is 2,340,452,915, with a fully diluted earnings per share of CNY 0.1158[4] - Accounts receivable decreased by 44.19% to approximately 331.34 million from 593.66 million, indicating a reduction in funds in transit[14] - Deferred tax assets increased by 45.52% to approximately 468.57 million due to a decline in the fair value of available-for-sale financial assets[14] - Other assets rose by 83.85% to approximately 2.42 billion, attributed to an increase in inventory from the futures subsidiary's spot trading[14] Financing Activities - The company issued short-term financing bonds totaling 2 billion with a term of 91 days and an interest rate of 3.69%[20] - The company completed the issuance of its first short-term corporate bond in 2018 with a scale of RMB 1.5 billion, a term of 365 days, and an issuance interest rate of 4.48%[21] - On October 19, 2018, the company issued corporate bonds to qualified investors with a total scale of RMB 2.5 billion, a term of 3 years, and a coupon rate of 4.50%[22] - The company successfully issued its sixth short-term financing bond on October 22, 2018, with a scale of RMB 2 billion, a term of 88 days, and an interest rate of 3.36%[23] - The company reported a total investment in securities of RMB 21.63 billion, with a fair value of RMB 23.20 billion at the end of the reporting period[29] Corporate Governance and Communication - The company appointed two new vice presidents, effective from the date of the board meeting[18] - The company established 13 new branches across various provinces, all of which are now operational[15] - The company engaged in communication with individual investors regarding industry conditions and operational status from July 2 to September 28, 2018[31] - The company has not experienced any overdue commitments from its actual controllers, shareholders, or related parties during the reporting period[25] - The company has not made any non-operating fund occupation by controlling shareholders or related parties during the reporting period[32] - Non-recurring gains and losses for the year-to-date amounted to CNY 19.73 million[6]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 2,056,700,776.11, a decrease of 2.73% compared to CNY 2,114,401,719.76 in the same period last year[18]. - The net profit attributable to shareholders was CNY 248,576,087.92, down 20.06% from CNY 310,946,599.50 year-on-year[18]. - The net cash flow from operating activities decreased by 28.05% to CNY 2,629,247,555.92, compared to CNY 3,654,407,467.41 in the previous year[18]. - The basic earnings per share decreased by 15.38% to CNY 0.11, down from CNY 0.13 in the same period last year[18]. - The company's net profit margin decreased, with net profit dropping by 40.53% year-on-year to ¥328.61 billion in the first half of 2018[32]. - The total revenue for the first half of 2018 was CNY 2,056,700,776.11, a decrease of 2.73% compared to CNY 2,114,401,719.76 in the same period of 2017[83]. - The operating profit for the first half of 2018 was CNY 295,109,448.47, down 20.80% from CNY 372,602,236.50 in the first half of 2017[85]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 63,083,109,692.59, reflecting a 5.25% increase from CNY 59,938,845,413.66 at the end of the previous year[18]. - The total liabilities increased by 8.27% to CNY 46,698,558,017.08, compared to CNY 43,133,174,721.05 at the end of the previous year[18]. - The company's total assets as of June 30, 2018, amounted to CNY 63,083,109,692.59, with a debt-to-asset ratio of 67.97%, which increased compared to the beginning of the year[86]. - The company's cash and cash equivalents increased to CNY 13,731,757,765.18, representing 21.77% of total assets, up from 18.67% at the end of 2017[87]. - The financial assets measured at fair value increased to CNY 12,032,261,769.52, accounting for 19.07% of total assets, up from 13.32% at the end of 2017[87]. - The total amount of financial liabilities increased from CNY 3,600,576.39 to CNY 10,525,797.20, reflecting a substantial rise in the company's debt obligations[95]. Risk Management - The company has established a comprehensive risk management system to address various risks including market, credit, liquidity, compliance, and operational risks[13]. - The company has implemented a risk management policy framework covering risk identification, assessment, response, and reporting[109]. - Market risk is identified as a significant concern, particularly in investment and asset management businesses, with a focus on managing securities price, interest rate, and exchange rate risks[111]. - Credit risk management is based on internal credit ratings, with measures including due diligence, credit limits, and collateral management to mitigate risks associated with bond investments and credit trading[112][119]. - The company actively monitors liquidity risk, ensuring that available funds and liquid assets can cover future external funding needs, maintaining all liquidity indicators in a safe state[119]. - Compliance risk is managed through improved institutional frameworks, real-time monitoring, and compliance training to enhance employee awareness and prevent legal sanctions[120]. - Operational risk management includes establishing clear responsibilities, conducting comprehensive risk assessments, and enhancing IT governance to mitigate risks from internal processes and external events[121]. Business Operations - The company operates 39 branches and 98 securities business offices across 57 major cities in China, providing extensive marketing channels[39]. - The company is positioned as a comprehensive securities firm focusing on small and medium-sized enterprises, with a diversified service offering[29]. - The company has a diversified financial service platform with a balanced development of its main businesses, enhancing its brand and scale advantages nationwide[37]. - The company completed 3 equity financing projects in the first half of 2018, ranking 12th in IPO underwriting[63]. - The company completed 7 merger and acquisition advisory projects in the first half of 2018, amidst a total of 2,181 transactions in the market, which represented a 10.14% year-on-year increase in transaction value[70]. - The company launched the "Rong e Tong" mobile financial service platform, enhancing user experience and exploring AI applications in the financial sector[59]. Shareholder Engagement and Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares for this reporting period[6]. - The company held its annual shareholders' meeting with a participation rate of 47.18% on April 19, 2018, reflecting shareholder engagement[126]. - The company has not disclosed any significant undisclosed information during investor communications, ensuring transparency[124]. - The half-year financial report has not been audited, which may impact the perception of financial reliability[129]. - The company’s compliance director was officially appointed on January 8, 2018, ensuring adherence to regulatory standards[176]. Community Engagement and Social Responsibility - The company has committed to providing multi-faceted support for poverty alleviation in Jilin Province, aligning with national poverty alleviation strategies[161]. - The company invested CNY 1 million in a photovoltaic power generation project to support poverty alleviation efforts in Renyi Village, Dongfeng County[170]. - The company donated over CNY 40,000 worth of educational materials to help 390 children fulfill their wishes as part of its educational poverty alleviation initiatives[166]. - The company has signed agreements with four enterprises under the "One County, One Enterprise" initiative and is providing targeted training and guidance for their public listing preparations[170]. - The company plans to invest CNY 400,000 in various public welfare activities to support students from registered impoverished households in four signed poverty-stricken counties[171]. - The company is actively conducting investor education activities in poverty-stricken areas to enhance financial risk awareness among local residents[167]. Legal Matters - Company filed a lawsuit against Shandong Jiulong Ocean Industry Co., Ltd. for a total claim of 162.45 million RMB, including 150 million RMB in bond principal and 12.45 million RMB in interest[136]. - Company has received a court ruling requiring Shandong Jiulong to pay 150 million RMB in bond principal and 12.45 million RMB in interest within ten days of the judgment[136]. - Company is currently applying for an evaluation of the seized property of Dongyu Building, which is expected to aid in debt recovery[141]. - The company is involved in litigation regarding a stock pledge repurchase contract dispute with Jinlong Electromechanical, involving a loan of 66.9 million yuan[194]. - The company is also in litigation concerning a stock pledge repurchase contract with Zhang Yongxia, involving a loan of 388.67 million yuan[195]. - The company reached a settlement with RAAS CHINA, resulting in a supplemental pledge of 23.5 million shares and an initial payment of 3 million yuan towards the principal[198].

Financial Performance - The company's operating revenue for Q1 2018 was ¥945,476,451.54, a decrease of 11.27% compared to ¥1,065,593,378.18 in the same period last year[4] - The net profit attributable to shareholders was ¥132,905,501.51, down 31.26% from ¥193,357,411.04 year-on-year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥125,912,383.83, a decline of 33.18% compared to ¥188,432,395.64 in the previous year[4] - The basic earnings per share decreased by 25.00% to ¥0.06 from ¥0.08 in the same period last year[4] - The cash flow from operating activities was ¥534,685,880.66, down 3.59% from ¥554,599,539.32 in the same period last year[4] Assets and Liabilities - The total assets at the end of the reporting period were ¥62,067,232,392.30, an increase of 3.55% from ¥59,938,845,413.66 at the end of the previous year[4] - The net assets attributable to shareholders decreased by 0.50% to ¥15,592,480,447.22 from ¥15,670,782,678.46 at the end of the previous year[4] - Total liabilities decreased by 31.66% to ¥7,618,483,769.35 from ¥11,147,907,387.81, mainly due to repayment of maturing subordinated debt[14] Income and Expenses - Net interest income increased significantly to ¥34,393,432.94 from ¥43,737.36, a growth of 78,536.28% due to a decrease in interest expenses from reduced debt levels[14] - Investment income decreased by 32.76% to ¥159,645,503.02 from ¥237,439,119.12, attributed to reduced returns on financial asset investments[14] - Fair value changes in income rose to ¥92,100,915.81 from -¥30,244,831.30, marking a 404.52% increase due to appreciation in trading financial assets[14] - Other business income fell by 31.28% to ¥310,461,562.94 from ¥451,784,756.76, primarily due to decreased revenue from subsidiary spot trading operations[14] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 116,789, with the top 10 shareholders holding a combined 30.81% of the shares[9] Financing Activities - The company issued short-term financing bonds totaling ¥20 billion with a maturity of 91 days at a coupon rate of 4.99% on January 16, 2018, and ¥15 billion with a maturity of 88 days at a coupon rate of 4.69% on March 12, 2018[17] - A non-public bond issuance was completed for ¥30 billion with a 3-year term and a coupon rate of 6.10% on January 22, 2018[19] Legal and Compliance - The company is involved in significant litigation regarding a stock pledge repurchase agreement, claiming ¥1.6245 billion in principal and interest, along with ¥16.65 million in unpaid advisory fees[21][23] - The compliance director position was filled by Wang Aibin on January 8, 2018, following approval from the regulatory authority[16] Operational Changes - The company has relocated several branch offices to enhance operational efficiency, with the latest move occurring on March 30, 2018[15] Investor Relations - The company engaged in telephone communications with individual investors from January 3 to March 30, 2018, discussing industry conditions and the company's operational status[28] Securities Investments - The company reported a total investment in securities amounting to approximately RMB 20.56 billion, with a net loss from securities investments of RMB 224.53 million during the reporting period[25] - The company held a total of 17,408,827,624.64 in other securities investments at the end of the reporting period, with a significant portion being in tradable financial assets[27] Non-Recurring Gains - The company reported non-recurring gains of ¥7,024,669.77 after tax, with the majority attributable to non-recurring income from government subsidies[7]

Financial Overview - The company reported a total registered capital of RMB 2,340,452,915 as of December 31, 2017[16]. - The net capital of the company stood at RMB 13,523,966,190.23[16]. - The company’s total revenue for 2017 was approximately ¥4.93 billion, representing a year-over-year increase of 9.91% compared to ¥4.48 billion in 2016[40]. - Net profit attributable to shareholders decreased by 49.28% to approximately ¥666.95 million in 2017 from ¥1.31 billion in 2016[40]. - The basic earnings per share (EPS) fell by 51.72% to ¥0.28 in 2017, down from ¥0.58 in 2016[40]. - The total assets at the end of 2017 were approximately ¥59.94 billion, a decrease of 20.25% from ¥75.16 billion at the end of 2016[40]. - The total liabilities decreased by 26.34% to approximately ¥43.13 billion in 2017 from ¥58.56 billion in 2016[40]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion for the quarter, representing a 20% year-over-year growth[35]. - The company reported a classification evaluation of A Class A-level securities company for 2015 and 2016, and a downgrade to B Class BBB-level for 2017[38][39]. Risk Management - The company emphasizes the importance of risk management, addressing market, credit, liquidity, compliance, and operational risks[13]. - The company has implemented a comprehensive risk management system, maintaining asset quality above regulatory standards and ensuring stable business operations[76][78]. - The risk management framework includes a four-level, three-line defense structure, with clear responsibilities assigned to the board of directors and various committees[186]. - The company faces various risks, including market risk from price fluctuations, credit risk from counterparty defaults, and liquidity risk from funding shortages[192][193][194]. - The company is committed to improving its comprehensive risk management system and strengthening the roles of risk management and compliance departments[198]. Business Operations - The company’s main business has shifted from petroleum and petrochemical sales to securities services, including brokerage and investment consulting[19]. - The company has established multiple subsidiaries, including Dongzheng Rongtong and Dongzheng Rongda, contributing to its market presence[32]. - Northeast Securities has a total of 39 branches as of the report date, enhancing its market presence[29]. - The company operates 39 subsidiaries and 98 securities business departments across 57 major cities in China, providing a robust marketing network[75]. - The company has a continuous supervision responsibility from Dongwu Securities Co., Ltd. during the period from April 22, 2016, to December 31, 2017[38]. Financial Performance - The company’s total equity attributable to shareholders increased slightly by 0.54% to approximately ¥15.67 billion at the end of 2017[40]. - The company’s cash and cash equivalents decreased by 34.80% to approximately ¥11.19 billion at the end of 2017 from ¥17.16 billion at the end of 2016[42]. - The company reported a significant reduction in short-term financing payables, which decreased by 72.61% to approximately ¥2.90 billion in 2017[42]. - The company’s net cash flow from operating activities improved significantly, reaching approximately ¥4.50 billion in 2017, compared to a negative cash flow of ¥16.23 billion in 2016, marking a 127.73% increase[40]. - The company’s operating expenses decreased by 11.40% to RMB 2.08 billion from RMB 2.35 billion in 2016[43]. Future Outlook - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 25% and aiming for $1.875 billion[35]. - The company continues to explore opportunities for mergers and acquisitions to strengthen its market position[32]. - Future guidance indicates a focus on sustainability initiatives, with a commitment to reduce carbon emissions by 30% over the next five years[35]. - The company plans to enhance its financial technology investments to support business innovation and management upgrades, aiming to create a digital, online, and intelligent financial service system[180]. Investment and Capital Management - The company has strong short-term and long-term financing capabilities, supported by a good credit record and comprehensive credit lines from multiple commercial banks[157]. - The company has committed to transparency in the use of raised funds, with detailed reports available on the official information disclosure platform[167]. - The total amount of funds raised for operational capital and other business needs is significant, indicating a strong focus on maintaining liquidity[170]. - The company is actively researching innovative debt financing tools to support business development, including asset-backed securities[153]. Subsidiaries and Investments - The company’s private equity fund subsidiary, Dongzheng Rongtong, managed 8 private equity investment funds with a total paid-in capital of RMB 1.667 billion and an external investment balance of RMB 770 million by the end of the reporting period[126]. - The total scale of Dongzheng Ronghui's asset management business reached RMB 88.359 billion by the end of the reporting period, with a breakdown of RMB 19.417 billion in collective asset management, RMB 66.826 billion in directional asset management, and RMB 2.116 billion in special asset management[134][136]. - The company’s public fund subsidiary, Dongfang Fund, had 44 existing products with a total scale of RMB 20.145 billion, ranking 70th in the industry[137]. Market Position and Competition - The company achieved a trading volume of 2,066.4 billion RMB in AB share funds, maintaining a market share similar to last year and improving its ranking[105]. - The company’s stock trading volume for A shares was 1,746.4 billion RMB, with a market share of 7.77‰, while B shares were 0.7 billion RMB with a market share of 3.58‰[110]. - The company’s Hong Kong Stock Connect business saw significant growth in client numbers and total transaction volume, improving its market share ranking to 33rd[111].