[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides crucial disclaimers, defines key terms, and highlights major operational risks [Important Notice](index=2&type=section&id=Important%20Notice) The company's board, supervisory board, and senior management ensure the report's accuracy and completeness, with no profit distribution planned for the period and unaudited financial statements - The company's management guarantees the truthfulness, accuracy, and completeness of the report content[2](index=2&type=chunk) - The company's 2019 semi-annual financial report is unaudited by an accounting firm[2](index=2&type=chunk) - The company plans no cash dividends, bonus shares, or capital increase from capital reserves during the reporting period[2](index=2&type=chunk) [Definitions](index=4&type=section&id=Definitions) This chapter defines key terms and company abbreviations used in the report, including the company itself, subsidiaries, major shareholders, and other related parties, providing a foundation for understanding the report content - Clarifies that "the Company" refers to Guohai Securities Co., Ltd., and "Reporting Period" is from January 1 to June 30, 2019[5](index=5&type=chunk) [Major Risk Warning](index=6&type=section&id=Major%20Risk%20Warning) The company advises investors to be aware of major operational risks, including market, credit, liquidity, operational, reputational, and money laundering risks, with established internal controls to manage them - The company's main operational risks include market risk, credit risk, liquidity risk, operational risk, reputational risk, and money laundering risk[7](index=7&type=chunk) [Company Profile and Key Financial Indicators](index=7&type=section&id=Company%20Profile%20and%20Key%20Financial%20Indicators) This section introduces Guohai Securities Co., Ltd., its business scope, and presents key financial performance and risk control indicators for the reporting period [Company Profile](index=7&type=section&id=Company%20Profile) Guohai Securities Co., Ltd. (stock code: 000750) is a comprehensive securities company listed on the Shenzhen Stock Exchange, with a broad business scope including brokerage, investment advisory, underwriting, and asset management - The company's stock abbreviation is Guohai Securities, stock code **000750**, listed on the Shenzhen Stock Exchange[8](index=8&type=chunk) - The company's business scope includes diversified services such as securities brokerage, investment advisory, underwriting and sponsorship, proprietary trading, asset management, and margin financing and securities lending[10](index=10&type=chunk) [Key Accounting Data and Financial Indicators](index=9&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first half of 2019, the company achieved significant growth in revenue and net profit, with total assets increasing, while some net capital risk control indicators slightly declined 2019 H1 Key Financial Data (Consolidated Statements) | Indicator | Jan-Jun 2019 (Yuan) | Jan-Jun 2018 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,862,532,301.41 | 986,917,713.84 | 88.72% | | **Net Profit Attributable to Parent** | 388,455,983.55 | 102,050,173.39 | 280.65% | | **Net Profit Attributable to Parent (Excl. Non-recurring)** | 386,908,767.18 | 101,504,095.19 | 281.18% | | **Basic Earnings Per Share (Yuan/share)** | 0.09 | 0.02 | 350.00% | | **Weighted Average Return on Net Assets** | 2.83% | 0.74% | Increased by 2.09 percentage points | | **Net Cash Flow from Operating Activities (Yuan)** | 4,683,957,798.20 | -635,697,893.81 | Not applicable | | **Total Assets (Yuan)** | 70,474,222,813.86 | - | 11.57% (vs. beginning of year) | | **Net Assets Attributable to Parent (Yuan)** | 13,889,227,932.73 | - | 2.33% (vs. beginning of year) | Parent Company Core Risk Control Indicators (June 30, 2019) | Indicator | Period-end Value | Change from Beginning of Year | Regulatory Standard | | :--- | :--- | :--- | :--- | | **Risk Coverage Ratio** | 222.61% | Decreased by 33.93 percentage points | ≥100% | | **Capital Leverage Ratio** | 19.81% | Decreased by 0.75 percentage points | ≥8% | | **Liquidity Coverage Ratio** | 185.40% | Decreased by 5.17 percentage points | ≥100% | | **Net Stable Funding Ratio** | 166.40% | Decreased by 55.44 percentage points | ≥100% | [Company Business Overview](index=16&type=section&id=Company%20Business%20Overview) This section details the company's main business segments and analyzes its core competitive advantages, including regional strength and financial bond underwriting leadership [Main Businesses](index=16&type=section&id=Main%20Businesses) The company's core operations span retail wealth management, corporate financial services, sales and trading, investment management, and credit businesses, with significant assets under management - The company's business is divided into five major segments: retail wealth management, corporate financial services, sales and trading, investment management, and credit business[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)[28](index=28&type=chunk) - Retail wealth management business: As of the end of the reporting period, the company had established **129** securities branches, with **71** in Guangxi, ranking first in market share[24](index=24&type=chunk) - Investment management business: As of the end of the reporting period, the company's entrusted asset management scale was **CNY 111.60 billion**; controlling subsidiary Guohai Franklin Fund Management's public fund management scale was **CNY 26.57 billion**; wholly-owned subsidiary Guohai Innovation Capital's asset management scale was **CNY 16.52 billion**[27](index=27&type=chunk)[28](index=28&type=chunk) [Core Competitiveness Analysis](index=19&type=section&id=Core%20Competitiveness%20Analysis) The company's core strengths include its strategic location in Guangxi, leading position in financial bond underwriting, market-oriented management, enhanced capital strength, and clear strategic planning - As the only listed comprehensive securities company in Guangxi, the company has maintained the top market share in the local market for many years, demonstrating significant regional and brand advantages[31](index=31&type=chunk)[32](index=32&type=chunk) - Financial bond underwriting is a core advantage, with the company consistently ranking among the top securities firms for underwriting financial bonds from China Development Bank, Agricultural Development Bank, and Export-Import Bank[32](index=32&type=chunk) - The company has established a market-oriented operating and management mechanism and rapidly enhanced its capital strength through multiple capital injections, laying a foundation for transformation and development[33](index=33&type=chunk) [Discussion and Analysis of Operations](index=22&type=section&id=Discussion%20and%20Analysis%20of%20Operations) This section provides an overview of the company's operational performance, detailed analysis of main business segments, asset and liability status, investment activities, and risk management strategies [Overview](index=22&type=section&id=Overview) In the first half of 2019, the company achieved strong operating results, with operating revenue increasing by 88.72% and net profit attributable to shareholders surging by 280.65% 2019 H1 Performance Overview | Indicator | Amount (Ten Thousand Yuan) | YoY Growth | | :--- | :--- | :--- | | **Operating Revenue** | 186,253.23 | 88.72% | | **Total Profit** | 55,733.92 | 245.88% | | **Net Profit Attributable to Parent** | 38,845.60 | 280.65% | [Main Business Analysis](index=22&type=section&id=Main%20Business%20Analysis) In H1 2019, sales and trading business was the largest revenue contributor with significant growth, while investment management and retail wealth management also grew, but credit and corporate finance services declined 2019 H1 Operating Revenue Composition | Business Segment | Operating Revenue (Ten Thousand Yuan) | Proportion of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | **Sales and Trading Business** | 55,810.51 | 29.96% | 694.30% | | **Investment Management Business** | 47,260.24 | 25.37% | 64.89% | | **Retail Wealth Management Business** | 41,209.74 | 22.13% | 8.70% | | **Credit Business** | 14,559.08 | 7.82% | -67.58% | | **Corporate Financial Services Business** | 5,703.32 | 3.06% | -13.36% | - Net cash flow from operating activities significantly turned positive from **CNY -635.69 million** in the same period last year to **CNY 4.68 billion**, primarily due to increased net funds from repurchase business and net cash received from agency securities trading[37](index=37&type=chunk)[43](index=43&type=chunk) [Assets and Liabilities Status](index=35&type=section&id=Assets%20and%20Liabilities%20Status) As of June 30, 2019, total assets increased by 11.57% to **CNY 70.47 billion**, with significant reclassification of financial asset accounts due to new accounting standards, and liabilities rising due to repurchase and agency trading funds - Due to the implementation of new financial instrument accounting standards from January 1, 2019, the company's balance sheet accounts underwent significant adjustments, with several financial asset accounts being reclassified[69](index=69&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) - Monetary funds increased by **35.25%** from the beginning of the year, mainly due to increased deposits from agency securities trading at period-end[73](index=73&type=chunk) - Funds from financial assets sold under repurchase agreements and agency securities trading funds increased by **24.06%** and **38.31%** respectively from the beginning of the year, serving as the main drivers of liability growth[74](index=74&type=chunk) [Investment Status Analysis](index=41&type=section&id=Investment%20Status%20Analysis) During the reporting period, the company made new equity investments of **CNY 60 million**, primarily focusing on bond investments which constitute the majority of its financial asset portfolio Financial Asset Investment Status (June 30, 2019) | Asset Category | Initial Investment Cost (Yuan) | Period-end Book Value (Yuan) | | :--- | :--- | :--- | | **Bonds** | 22,409,860,915.16 | 22,430,065,761.28 | | **Funds** | 1,178,200,494.64 | 1,166,781,877.52 | | **Stocks** | 670,117,292.30 | 633,931,623.73 | | **Others** | 676,508,380.30 | 748,461,991.23 | [Operating Performance of Major Subsidiaries](index=43&type=section&id=Operating%20Performance%20of%20Major%20Subsidiaries) During the reporting period, major subsidiaries performed well, with Guohai Innovation Capital being the largest profit contributor, followed by Guohai Franklin Fund and Guohai Liangshi Futures Major Subsidiary Operating Performance (Jan-Jun 2019) | Company Name | Operating Revenue (Ten Thousand Yuan) | Net Profit (Ten Thousand Yuan) | | :--- | :--- | :--- | | **Guohai Innovation Capital Investment Management Co., Ltd.** | 11,432.04 | 4,805.55 | | **Guohai Franklin Fund Management Co., Ltd.** | 15,173.85 | 4,460.11 | | **Guohai Liangshi Futures Co., Ltd.** | 39,006.55 | 2,267.43 | [Risk Management](index=44&type=section&id=Risk%20Management) The company manages market, credit, liquidity, operational, reputational, money laundering, and subsidiary risks through diversified investments, hedging, and a four-level comprehensive risk management system - The company's main risks include market risk, credit risk, liquidity risk, operational risk, reputational risk, money laundering risk, and subsidiary risk[83](index=83&type=chunk)[84](index=84&type=chunk) - As of June 30, 2019, the overall maintenance guarantee ratio for margin financing and securities lending business was **243.89%**, and the overall performance guarantee ratio for stock pledge repurchase business was **173.11%**, indicating controllable credit risk for financing businesses[90](index=90&type=chunk) - The company has established a four-level comprehensive risk management organizational system and utilizes quantitative tools like VaR and sensitivity analysis to enhance risk management[85](index=85&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) [Significant Matters](index=63&type=section&id=Significant%20Matters) This section covers the company's commitment fulfillment, ongoing litigation, regulatory penalties and rectifications, and significant related party transactions during the reporting period [Commitments](index=63&type=section&id=Commitments) During the reporting period, the company and related parties strictly fulfilled commitments made during acquisitions, asset restructuring, and refinancing, with no overdue unfulfilled commitments - During the reporting period, the company and related parties had no overdue unfulfilled commitments[107](index=107&type=chunk) - Major committing parties, such as Guangxi Investment Group, pledged to ensure the company's independence in assets, finance, organization, business, and personnel, avoid horizontal competition, and regulate related party transactions[108](index=108&type=chunk)[109](index=109&type=chunk) [Litigation Matters](index=70&type=section&id=Litigation%20Matters) While no major litigation occurred, the company is involved in several ongoing lawsuits primarily related to private bond defaults and stock pledge repurchase contract breaches, with some cases resolved or ongoing without forming provisions - As a manager, the company filed a lawsuit regarding the "Jiangsu Zhonglian Logistics" private bond default case, with the court ruling the issuer and guarantor to pay **CNY 50 million** in principal and interest[116](index=116&type=chunk) - The company is involved in multiple lawsuits concerning stock pledge repurchase transaction contract defaults, with involved principal amounts ranging from tens of millions to hundreds of millions of Yuan, all having entered judicial proceedings[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) [Penalties and Rectification](index=76&type=section&id=Penalties%20and%20Rectification) The company received a warning letter from Jiangsu Securities Regulatory Bureau for inadequate supervision of issuer's fundraising use, which has been rectified, with no other major penalties or investigations during the period - The company received a warning letter from Jiangsu Securities Regulatory Bureau for inadequate supervision of the issuer's fundraising use and has completed rectification[125](index=125&type=chunk) [Significant Related Party Transactions](index=77&type=section&id=Significant%20Related%20Party%20Transactions) Related party transactions primarily involved routine operations like brokerage and underwriting services, repurchase interest expenses, and a joint equity investment fund established by a subsidiary with a major shareholder's affiliate - Wholly-owned subsidiary Guohai Innovation Capital jointly established an equity investment fund with Guangxi Investment Capital, an affiliate of the largest shareholder, with Guohai Innovation Capital contributing **CNY 60 million**, accounting for **20%**[130](index=130&type=chunk) [Share Changes and Shareholder Information](index=86&type=section&id=Share%20Changes%20and%20Shareholder%20Information) This section details the company's share capital stability, shareholder structure, and the change in controlling shareholder during the reporting period [Share Changes](index=86&type=section&id=Share%20Changes) During the reporting period, the company's total share capital remained unchanged at 4,215,541,972 shares, with an extremely small proportion of restricted shares - During the reporting period, the company's total number of shares and share capital structure remained unchanged[148](index=148&type=chunk) [Shareholder Information](index=87&type=section&id=Shareholder%20Information) As of the end of the reporting period, the company had 193,206 common shareholders, with Guangxi Investment Group Co., Ltd. as the largest shareholder, and a relatively high concentration of state-owned legal entities among the top ten Top Ten Common Shareholders' Shareholding (June 30, 2019) | Rank | Shareholder Name | Number of Shares Held (shares) | Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | | 1 | Guangxi Investment Group Co., Ltd. | 941,959,606 | 22.34 | | 2 | Guangxi Ronggui Logistics Group Co., Ltd. | 220,546,903 | 5.23 | | 3 | Zhuzhou State-owned Assets Investment Holding Group Co., Ltd. | 183,750,000 | 4.36 | | 4 | Guangxi Guidong Electric Power Co., Ltd. | 158,443,568 | 3.76 | | 5 | Guangxi Wuzhou Zhongheng Group Co., Ltd. | 120,756,361 | 2.86 | | 6 | China Securities Finance Corporation Limited | 99,076,455 | 2.35 | | 7 | Guangxi Investment Group Financial Holdings Co., Ltd. | 94,992,157 | 2.25 | | 8 | Central Huijin Asset Management Co., Ltd. | 64,254,450 | 1.52 | | 9 | Guangxi Financial Investment Group Co., Ltd. | 55,136,726 | 1.31 | | 10 | Guangxi Paipu Chuangying Investment Center (Limited Partnership) | 40,287,769 | 0.96 | [Change in Controlling Shareholder or Actual Controller](index=88&type=section&id=Change%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) During the reporting period, Guangxi Investment Group Co., Ltd. became the company's actual controller through gratuitous state-owned equity transfer, holding a combined **31.58%** stake - Through gratuitous state-owned equity transfer, Guangxi Investment Group collectively holds **31.58%** of the company's equity, becoming the new actual controller[154](index=154&type=chunk)[155](index=155&type=chunk) [Directors, Supervisors, and Senior Management Information](index=90&type=section&id=Directors%2C%20Supervisors%2C%20and%20Senior%20Management%20Information) This section outlines the stable shareholding of directors, supervisors, and senior management, along with recent personnel appointments [Shareholding Changes and Personnel Changes of Directors, Supervisors, and Senior Management](index=90&type=section&id=Shareholding%20Changes%20and%20Personnel%20Changes%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, shareholdings of directors, supervisors, and senior management remained largely stable, with new appointments for Vice President and Chief Information Officer pending regulatory approval - During the reporting period, shareholdings of the company's directors, supervisors, and senior management remained unchanged[158](index=158&type=chunk) - The company newly appointed Yang Liping as Vice President and Wen Li as Chief Information Officer, with their qualifications pending regulatory approval[159](index=159&type=chunk) [Company Bonds Information](index=92&type=section&id=Company%20Bonds%20Information) This section provides details on the company's outstanding corporate and subordinated bonds, their repayment status, and credit ratings [Company Bond Basic Information and Repayment Status](index=92&type=section&id=Company%20Bond%20Basic%20Information%20and%20Repayment%20Status) As of the reporting period, the company had five outstanding bonds totaling approximately **CNY 11.14 billion**, all listed on the Shenzhen Stock Exchange, with timely interest payments and stable AA+ credit ratings Outstanding Corporate and Subordinated Bonds Overview | Bond Abbreviation | Bond Code | Maturity Date | Bond Balance (Ten Thousand Yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | | 15 Guohai Bond | 112244 | 2020-05-08 | 195,865.68 | 6.00% | | 15 Guohai 01 | 118917 | 2020-02-13 | 256,800.00 | 6.30% | | 17 Guohai C1 | 118959 | 2020-03-23 | 279,000.00 | 5.70% | | 17 Guohai C2 | 118967 | 2020-08-28 | 206,000.00 | 5.80% | | 18 Guohai C1 | 118990 | 2021-12-12 | 175,000.00 | 5.71% | - During the reporting period, the company timely and fully paid annual interest for "15 Guohai Bond", "15 Guohai 01", and "17 Guohai C1"[160](index=160&type=chunk) - China Chengxin Securities Rating and China Chengxin International Credit Rating both maintained the company's corporate credit rating at **AA+**, with a stable outlook[163](index=163&type=chunk) [Financial Report](index=97&type=section&id=Financial%20Report) This section contains the company's unaudited 2019 semi-annual consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and detailed notes [Financial Statements](index=97&type=section&id=Financial%20Statements) This chapter includes the company's unaudited 2019 semi-annual consolidated and parent company financial statements, along with comprehensive notes detailing accounting policies, changes, and financial instrument information - The company's 2019 semi-annual financial report is unaudited[172](index=172&type=chunk) - Effective January 1, 2019, the company adopted new financial instrument standards, adjusting the classification, measurement, and impairment models of financial assets, impacting opening retained earnings and other comprehensive income[277](index=277&type=chunk) [Catalogue of Reference Documents](index=238&type=section&id=Catalogue%20of%20Reference%20Documents) This section lists the available reference documents, including signed financial statements and all publicly disclosed documents from the reporting period [Reference Documents](index=238&type=section&id=Reference%20Documents) This chapter lists available reference documents, including financial statements signed and sealed by the legal representative, chief accountant, and head of accounting department, as well as all publicly disclosed documents and semi-annual reports published in other securities markets during the reporting period - Reference documents include financial statements signed and sealed by management and all publicly disclosed documents from the reporting period[569](index=569&type=chunk)

Financial Performance - Operating revenue for Q3 2018 was CNY 500.07 million, down 36.69% compared to the same period last year[6] - Net profit attributable to shareholders for Q3 2018 was CNY 26.05 million, a significant decrease of 87.19% year-over-year[6] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 17.15 million, down 91.37% from the previous year[6] - Basic earnings per share for Q3 2018 were CNY 0.01, a decrease of 80.00% compared to the same period last year[6] - The weighted average return on equity was 0.19%, down 1.28 percentage points year-over-year[6] - The net income attributable to shareholders of the parent company decreased by 77.18% to CNY 128,100,983.74 from CNY 561,245,156.75[17] - The net commission income from brokerage business decreased by 21.26% to CNY 410,755,454.26 due to a decline in trading volume in the securities market[16] - The investment banking business net income decreased by 61.59% to CNY 141,486,996.04 due to a reduction in underwriting activities[16] - The company's interest income turned negative, reporting a net loss of CNY 410,386,093.85, attributed to decreased interest income from interbank placements and increased interest expenses[16] - The total assets impairment loss increased by 289.89% to CNY 39,127,453.55 compared to CNY 10,035,583.80 in the previous year[17] - The company's other business income increased by 37.37% to CNY 196,783,546.64, driven by higher income from futures company spot trading[16] Assets and Liabilities - Total assets as of September 30, 2018, were CNY 64.52 billion, a decrease of 2.25% compared to the end of 2017[6] - Total liabilities amounted to CNY 50.45 billion, reflecting a decline of 2.59% year-over-year[6] - As of September 30, 2018, the company's loaned funds decreased by 34.19% to CNY 4,177,196,340.48 compared to CNY 6,347,818,093.59 at the end of 2017[16] - The company's available-for-sale financial assets increased by 69.94% to CNY 9,964,939,291.23 from CNY 5,863,633,118.89[16] - The company reported a decrease in employee compensation payable by 59.78% to CNY 208,715,967.56 from CNY 518,909,578.94[16] - The company’s total liabilities increased, with borrowed funds rising by 31.58% to CNY 5,000,000,000.00 from CNY 3,800,000,000.00[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 147,540[11] - The largest shareholder, Guangxi Investment Group Co., Ltd., held 22.34% of the shares, totaling 941,959,606 shares[11] Legal Matters - The company is involved in multiple lawsuits related to defaults on financial agreements, including a claim for 180 million yuan in principal and approximately 1.68 million yuan in interest from a stock repurchase agreement[25] - The company has initiated legal proceedings against various parties for breaches of stock pledge agreements, with claims totaling 47 million yuan in principal and 250.54 thousand yuan in interest[28] - As of August 21, 2018, one defendant has repurchased 12.9 million yuan of the total 35.1 million yuan owed under a stock repurchase agreement, with ongoing litigation to recover the remaining amount[26] - The company has successfully obtained court orders to freeze assets valued at 181.68 million yuan related to various legal disputes[25][28] - The company is actively pursuing legal remedies for defaults on multiple asset management plans, with no expected liabilities recognized as of the report date[20][21] - The company has filed for property preservation in several cases, resulting in asset freezes to secure potential recoveries[27][28] - The company has reported no significant progress in ongoing litigation as of the report date, with several cases still pending court hearings[21][22][23] - The company initiated a lawsuit on October 17, 2018, against a defendant for failing to repurchase or supplement pledged stocks, seeking the return of principal amounting to CNY 173.4 million and interest of approximately CNY 886,300[30] Strategic Initiatives - The company signed multiple strategic cooperation agreements in August 2018 with banks, including Guilin Bank and Liuzhou Bank, to enhance its retail business strategy[35] - The company received approval on July 2, 2018, to amend important provisions of its articles of association, indicating regulatory compliance and governance improvements[36] - The company reported no significant asset acquisitions, sales, or mergers during the reporting period, maintaining a stable operational structure[30] Market Influence - The company is unable to accurately estimate cumulative net profit changes for the year due to significant fluctuations in the securities market[40] - The company’s financial performance is heavily influenced by market volatility, necessitating timely disclosures of monthly financial information to investors[40] - The company’s total revenue from securities brokerage services was CNY 2,149.27 million in the third quarter of 2018, with no significant change compared to the previous year[32] - The company’s financial advisory income reached CNY 45.28 million, representing 0.62% of similar transactions in the same period[33] Investment Performance - Total assets amounted to approximately 21.68 billion, with a fair value change of -122.44 million during the period[43] - The company reported a total investment income of approximately 452.49 million, with a significant decrease in stock and fund values[43] - The fair value change for stocks was -35.16 million, while funds experienced a decrease of -10.28 million[43] - The total purchase amount for stocks was approximately 9.41 billion, and total sales reached about 10.18 billion[43] - The company’s bond investments totaled approximately 18.66 billion, with a fair value change of -109.60 million[43] - Other investments reported a fair value change of 1.05 million, with total purchases of approximately 1.51 billion[43] - The company did not engage in derivative investments during the reporting period[45] Miscellaneous - There were no external guarantees or non-operating fund occupations reported by major shareholders[46] - The company did not conduct any commissioned financial management activities during the reporting period[44] - No research or communication activities were recorded during the reporting period[45]

Financial Performance - The company's operating revenue for the first half of 2018 was approximately ¥986.88 million, a decrease of 32.90% compared to ¥1,470.79 million in the same period of 2017[17]. - Net profit attributable to shareholders decreased by 71.49% to ¥102.05 million from ¥357.88 million year-over-year[17]. - The basic earnings per share dropped by 75.00% to ¥0.02 from ¥0.08 in the first half of 2017[17]. - Total assets as of June 30, 2018, were approximately ¥65.56 billion, a slight decrease of 0.68% from ¥66.01 billion at the end of 2017[17]. - The company's total liabilities decreased by 0.52% to ¥51.52 billion from ¥51.79 billion at the end of 2017[17]. - Cash flow from operating activities showed a significant negative net amount of approximately -¥635.70 million, compared to -¥1.95 billion in the same period last year[17]. - The company's total share capital remained unchanged at 4,215,541,972 shares[19]. - The company's net profit margin for the first half of 2018 was significantly impacted by a 97.67% decrease in income tax expenses, which fell to CNY 2,438,924.11 from CNY 104,859,053.90[27]. - The company's total operating profit for the first half of 2018 was approximately ¥986,881,566.76, a decrease of 32.90% compared to ¥1,470,787,777.22 in the same period of 2017[87]. Risk Management - The company faced various risks including market risk, credit risk, liquidity risk, operational risk, and reputation risk, and has established an internal control and risk management system[10]. - The company has established a comprehensive risk management organization structure to centralize and unify risk management, ensuring effective identification, assessment, measurement, monitoring, and disposal of various risks[128]. - The company has implemented a dynamic monitoring system for liquidity risk management, allowing for T+1 day monitoring of liquidity risk regulatory indicators[131]. - The company has developed a comprehensive risk management information system and established risk measurement models to enhance market risk management capabilities[130]. - The company has established a robust anti-money laundering internal control system, with no major violations reported during the reporting period[126]. - The company has implemented a risk management framework that includes a three-line defense system for operational risk management[132]. - The company has continuously optimized its risk reporting mechanism to ensure timely understanding of the company's risk status[129]. - The company has strengthened credit risk management by establishing standards for evaluating counterparties and selecting high-credit-quality bonds for investment[130]. - The company has developed a reputation risk management mechanism to identify, monitor, and control reputation risks effectively[133]. Corporate Governance - The company’s chairman is He Chunmei, and the responsible person for accounting is Tan Zhihua[12]. - The company has a total of 9 directors who participated in the board meeting to approve the report[2]. - The company has not made any substantial commitments regarding future plans, emphasizing the need for investors to recognize associated risks[3]. - The company plans not to distribute cash dividends or issue bonus shares during the reporting period[2]. - The financial report for the first half of 2018 has not been audited by an accounting firm[3]. Business Operations - The company’s business scope includes securities brokerage, investment consulting, and asset management among others[14]. - The company operates from its office located at 46 Binhai Road, Nanning, Guangxi[12]. - The company operates 129 securities branches, with 71 located in Guangxi, holding the largest market share in the region[31]. - The company has provided financial services to over 430 enterprises, including IPOs and refinancing, establishing a specialty in serving small and medium-sized enterprises[33]. - The company maintains a leading position in government and financial bond underwriting, consistently ranking in the top 11 for financial bond underwriting by the China Development Bank[45]. - The company has developed a comprehensive credit business product system, offering a one-stop solution for securities credit financing[38]. - The company has established a multi-channel internet financial service system, enhancing customer experience through online platforms[41]. - The company has a strong brand recognition and loyalty in Guangxi, maintaining the top market share in securities brokerage for many years[44]. Legal Matters - The company is involved in a lawsuit regarding the default of Jiangsu Zhonglian Logistics Co., Ltd. on its private bond issuance, with ongoing proceedings for bankruptcy liquidation[172]. - The company initiated litigation against Yang Yanqing regarding a financial trust contract dispute related to the "Guohai Mingli Shares 1 Asset Management Plan" due to a default issue[174]. - The company has filed a lawsuit to enforce its rights over pledged securities amounting to 7,709,996 shares, with a remaining principal of RMB 2,255.5 million and unpaid interest of RMB 136.28 million[178]. - The company has initiated legal action against a party for failing to fulfill obligations under multiple stock pledge agreements, seeking a total of RMB 13,460 million in principal and associated interest[180]. - The total amount involved in other litigation matters during the reporting period is approximately RMB 681.64 million, which has not formed an estimated liability[182]. Market Conditions - The overall securities market experienced a downturn, with a 12% decrease in industry revenue and a 41% drop in net profit year-on-year[52]. - The company ranked 17th in the industry for both equity underwriting scale and IPO projects under review, despite a challenging market environment[53]. - The company's proactive management led to a 24% increase in revenue from actively managed products in the asset management sector[53]. Compliance and Regulatory Issues - The company received a significant administrative penalty from the China Securities Regulatory Commission (CSRC) in March 2018, requiring corrective actions and increased compliance checks due to issues in its investment banking operations[183]. - The company has no significant administrative penalties or investigations involving its directors, supervisors, or major shareholders during the reporting period[184]. - The company has emphasized the importance of compliance culture and has taken measures to hold accountable those responsible for violations[156].

Financial Performance - The company's operating revenue for Q1 2018 was approximately ¥587.22 million, representing a decrease of 23.66% compared to ¥769.24 million in Q1 2017[6] - The net profit attributable to shareholders for Q1 2018 was approximately ¥139.97 million, down 36.24% from ¥219.53 million in the same period last year[6] - The basic earnings per share for Q1 2018 was ¥0.03, a decline of 40.00% compared to ¥0.05 in Q1 2017[6] - The total comprehensive income attributable to the parent company decreased by 47.44% to CNY 127,987,391.96 compared to CNY 243,497,512.96 in the previous year[16] Cash Flow and Assets - The net cash flow from operating activities for Q1 2018 was approximately ¥1.47 billion, an increase of 1,532.48% compared to ¥90.22 million in Q1 2017[6] - Total assets as of March 31, 2018, were approximately ¥67.25 billion, reflecting a growth of 1.88% from ¥66.01 billion at the end of 2017[6] - The net assets attributable to shareholders as of March 31, 2018, were approximately ¥13.88 billion, showing a slight increase of 0.93% from ¥13.76 billion at the end of 2017[6] Income and Expenses - Non-operating income and expenses for the reporting period resulted in a total loss of approximately ¥375,732.41[10] - The company's net income from fees and commissions dropped by 87.55% to CNY 19,194,153.19, primarily due to a decrease in underwriting business[15] - Investment income rose by 47.55% to CNY 436,698,633.57, reflecting increased earnings from financial assets held[15] - The company's other comprehensive income after tax decreased significantly, resulting in a net loss of CNY 11,981,062.04[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 151,763[10] - The largest shareholder, Guangxi Investment Group Co., Ltd., held 22.34% of the shares, totaling approximately 941.96 million shares[10] Liabilities and Obligations - The company's payable interest decreased by 45.50% to CNY 338,403,694.89, due to payments made on subordinated bonds and interest certificates[15] - The company's tax payable increased by 22.27% to CNY 63,137,338.06, indicating a rise in corporate income tax obligations[15] Legal Matters - The company reported no significant litigation or arbitration matters during the reporting period[17] - The company is involved in ongoing litigation related to the default of Jiangsu Zhonglian Logistics Co., Ltd. on its 2013 private placement bonds, with the court proceedings still pending as of March 2018[18] - The company has initiated legal action against Baihua Pharmaceutical Group for defaulting on private placement bonds, with a court ruling in favor of the company[31] Investments - The company reported a total investment in stocks of ¥1,734,163,533.61, with a fair value change of -¥19,101,300.60 for the period[35] - The total investment in bonds reached ¥17,074,794,450.54, with a fair value increase of ¥39,221,778.40 during the reporting period[35] - The company’s total assets amounted to ¥20,181,516,011.11, with a net investment income of -¥6,422,904.20 for the period[35] - The company’s investment in funds was ¥812,816,551.49, with a net investment income of ¥4,682,671.80[35] - The company’s other investments totaled ¥559,741,475.47, generating an investment income of ¥40,915,888.64 during the reporting period[35] Regulatory and Operational Impact - The company’s securities business has been adversely affected by regulatory measures from the China Securities Regulatory Commission, impacting its operational performance[32] - The company will disclose monthly financial information to keep investors informed about its operational status as per regulatory requirements[32] - The company is unable to accurately estimate the cumulative net profit change from the beginning of the year to the next reporting period due to significant market fluctuations[32] - The company has no overdue commitments from actual controllers, shareholders, or related parties during the reporting period[32] Other Information - The company has not engaged in any significant asset acquisitions, sales, or mergers during the reporting period[21] - The company has not reported any significant contracts or guarantees during the reporting period[28] - The company has no non-operating debt transactions or guarantees with related parties during the reporting period[25][26] - The company has submitted claims related to the bankruptcy proceedings of Jiangsu Zhonglian Logistics, with the first creditors' meeting scheduled for June 18, 2018[29]

Financial Performance - The company reported a total revenue of $1.5 billion for the fiscal year, representing a 10% increase year-over-year[34]. - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion in Q3 2023[36]. - The company's consolidated revenue for 2017 was approximately ¥2.66 billion, a decrease of 30.73% compared to ¥3.84 billion in 2016[45]. - The net profit attributable to shareholders for 2017 was approximately ¥375.76 million, down 63.00% from ¥1.02 billion in 2016[45]. - The basic earnings per share for 2017 was ¥0.09, a decline of 62.50% from ¥0.24 in 2016[45]. - The company reported a significant decline in both revenue and profit, indicating challenges in market performance and operational efficiency[45]. - The company reported a significant decrease in commission income from brokerage services, down 21.91% to CNY 671,491,606.56, and from investment banking services, down 64.35% to CNY 462,074,451.08[148]. - The investment income for 2017 increased by 41.32% to approximately ¥1.25 billion, indicating successful investment strategies despite overall profit decline[60]. Dividends and Capital Structure - The company plans to distribute a cash dividend of 0.60 RMB per 10 shares, totaling 252,932,518.32 RMB, with remaining undistributed profits of 817,008,126.10 RMB carried forward to the next year[3]. - The company does not plan to distribute stock dividends for the 2017 fiscal year[3]. - The company's total profit distribution plan is based on a total share capital of 4,215,541,972 shares as of December 31, 2017[3]. - The registered capital of Guohai Securities Co., Ltd. increased to RMB 4,215,541,972 after the profit distribution and capital reserve conversion plan was approved in 2016[23]. - The company’s total liabilities increased by 36.49% to ¥10.91 billion from ¥7.99 billion in 2016[61]. Risk Management - The company has established an internal control and risk management system to address market, credit, liquidity, operational, reputational, and money laundering risks[11]. - The company emphasizes the importance of understanding the risks associated with forward-looking statements in its annual report[4]. - The company recognizes various risks, including market, credit, liquidity, operational, and reputational risks, and has established measures to manage and mitigate these risks[188]. - The company has established a comprehensive risk management framework to address operational risks, including enhancing IT systems and supervision mechanisms[200]. Market Presence and Expansion - Guohai Securities has established multiple branches across major cities, including Beijing, Shanghai, and Shenzhen, to enhance market presence[27]. - The company aims to expand its market reach and improve service offerings through strategic investments and partnerships[27]. - The company is in the process of deregistering one of its branches as approved by the Shenzhen Securities Regulatory Bureau[28]. - The company plans to open 50 new retail locations in the next year to enhance customer accessibility[34]. - The company aims to enhance its wealth management ecosystem through an O2O model, integrating online and offline services[64]. Strategic Initiatives - The company completed a strategic acquisition of a smaller competitor for $300 million, enhancing its market position[34]. - The company announced a strategic acquisition of a tech startup for $200 million to bolster its product offerings[36]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of 500 million yuan for potential deals[40]. - The company is actively pursuing qualifications for securities investment fund custody and private investment fund services, enhancing its service capabilities[132]. Operational Efficiency - The gross margin improved to 45%, up from 40% in the previous year, due to cost optimization efforts[34]. - Operational efficiency initiatives have reduced costs by 10%, resulting in improved profit margins[36]. - The company aims to reduce operational costs by 8% through efficiency improvements in the next fiscal year[40]. - The company has implemented robust liquidity risk management strategies, ensuring sufficient liquidity reserves under both normal and stressed conditions[152]. Challenges and Outlook - The company faced challenges such as declining commission rates and trading volumes, prompting a need for strategic reforms in its retail and investment banking sectors[176]. - The company faces significant challenges from macroeconomic uncertainties, including tightening monetary policies in developed countries and rising international trade protectionism[180]. - The company provided guidance for the next fiscal year, expecting revenue to grow by 12% to $1.68 billion[34]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[40].

Financial Performance - Operating revenue for Q3 2017 was ¥780.19 million, a decrease of 33.35% year-over-year, while revenue for the first nine months was ¥2.22 billion, down 22.56%[6] - Net profit attributable to shareholders for Q3 2017 was ¥203.36 million, reflecting a 53.29% decline compared to the same period last year[6] - The basic earnings per share for Q3 2017 was ¥0.05, a decrease of 50.00% from the previous year[6] - The weighted average return on equity for Q3 2017 was 1.47%, down 4.06 percentage points year-over-year[6] - The net profit attributable to shareholders decreased by 42.66% to ¥561,245,156.75 from ¥978,738,555.84, highlighting a decline in overall profitability[19] Assets and Liabilities - Total assets as of September 30, 2017, amounted to ¥68.62 billion, representing a 0.97% increase from the end of 2016[6] - The company reported a net cash flow from operating activities of -¥3.57 billion for the first nine months of 2017[6] - The company reported a 100% increase in borrowed funds, reaching ¥3,000,000,000.00 from ¥1,500,000,000.00, indicating increased leverage in the interbank market[17] - The total liabilities classified as held for sale amounted to ¥7,172,711.90, related to the pending transfer of a 51% stake in Beibu Gulf Stock Exchange[17] - The company’s short-term financing payables increased by 21.86% to ¥3,930,350,000.00 from ¥3,225,400,000.00, reflecting a rise in short-term debt obligations[17] Shareholder Information - The total number of ordinary shareholders as of September 30, 2017, was 159,701[11] - The largest shareholder, Guangxi Investment Group Co., Ltd., held 22.34% of the shares, totaling 941,959,606 shares[11] Investment and Income - Investment income rose by 66.44% to ¥984,647,184.76 compared to ¥591,590,113.41 in the same period last year, reflecting improved returns on financial assets[19] - Other business income increased by 79.53% to ¥143,612,670.26, driven by higher trading volumes in the futures company[19] - The company reported a total investment income of ¥459.68 million, with a net investment return of ¥73.70 million from stocks[41] - The bond investments had a fair value change of ¥93.55 million, with a total investment of approximately ¥15.44 billion[41] - The company’s fund investments had a fair value change of ¥1.66 million, with a total investment of approximately ¥684.38 million[41] Regulatory and Legal Matters - The company faced regulatory measures from the China Securities Regulatory Commission, which may adversely affect its bond underwriting and asset management operations[38] - The company is involved in ongoing litigation related to bond defaults, with recent court rulings favoring the company[36][37] - The company has not engaged in any significant non-operating debt transactions with related parties during the reporting period[27] Corporate Actions and Developments - The company did not report any significant new product developments or market expansion strategies during the quarter[6] - The company did not experience any significant asset acquisitions, disposals, or mergers during the reporting period[24] - The company agreed to transfer 51% equity of Guangxi Beibu Gulf Equity Exchange Co., Ltd. to its largest shareholder, Guangxi Investment Group Co., Ltd.[26] - The company issued subordinated bonds in two phases, raising a total of ¥48.50 billion, with the first phase at ¥27.90 billion and the second phase at ¥20.60 billion[32] - The company recorded interest expenses of ¥7,214,100 for the subordinated bonds issued in March 2017[28] Social Responsibility - The company made a donation of ¥300,000 to support poverty alleviation efforts in Guangxi province during the third quarter[48] - Cumulative donations from the Guangxi Guohai Poverty Alleviation and Education Foundation reached ¥5.35 million from 2006 to September 2017[46] - The company plans to continue supporting poverty alleviation through financing for local enterprises and material assistance in targeted areas[47] - The company actively engaged in social responsibility by sending first secretaries to impoverished villages and improving infrastructure[44] Other Financial Metrics - Non-recurring gains and losses totaled ¥43.67 million, with a net impact on net profit of ¥32.75 million[9] - The company’s other comprehensive income after tax increased to ¥37,794,127.46, compared to a loss of ¥135,090,227.59 in the previous year, indicating a recovery in the value of available-for-sale financial assets[19] - Total assets amounted to approximately ¥18.32 billion, with a fair value change of ¥65.12 million during the period[41] - The total purchase amount for stocks was approximately ¥3.07 billion, while the total sale amount was about ¥2.17 billion[41] - The total investment in other assets was approximately ¥873.03 million, with a fair value change of ¥30,001.34[41]

Financial Performance - Total operating revenue for the first half of 2017 was ¥1,438,013,638.32, a decrease of 15.10% compared to ¥1,693,746,714.85 in the same period of 2016[20]. - Net profit attributable to shareholders was ¥357,883,791.72, down 34.13% from ¥543,346,607.47 in the first half of 2016[20]. - The net profit after deducting non-recurring gains and losses was ¥333,486,602.96, a decline of 38.51% compared to ¥542,366,028.24 in the previous year[20]. - The net cash flow from operating activities was -¥1,947,971,287.18, an improvement from -¥5,299,115,264.16 in the same period last year[20]. - Basic earnings per share for the first half of 2017 were ¥0.08, down 38.46% from ¥0.13 in the same period of 2016[20]. - The weighted average return on equity decreased by 1.49 percentage points to 2.59% from 4.08% in the previous year[20]. - The company's net income for the first half of 2017 was CNY 548.64 million, a decrease of 39.15% compared to CNY 901.55 million in the same period of 2016[30]. - The total profit for the same period was CNY 50,283.14 million, down 33.31% compared to the previous year[58]. - The company's operating revenue for the first half of 2017 was ¥1,438,013,638.32, a decrease of 15.10% compared to ¥1,693,746,714.85 in the same period of 2016[60]. - The operating profit for the first half of 2017 was approximately 470.39 million yuan, down 37.49% year-on-year[96]. Assets and Liabilities - Total assets as of June 30, 2017, were ¥66,229,107,353.59, a decrease of 2.55% from ¥67,961,354,951.18 at the end of 2016[20]. - Total liabilities decreased by 3.20% to ¥51,909,081,779.11 from ¥53,627,575,106.16 at the end of 2016[20]. - Cash and cash equivalents decreased by 7.04% to ¥12,153,581,834.96 from ¥13,074,115,949.39 at the end of 2016[23]. - The total equity attributable to shareholders of the parent company slightly decreased by 0.36% to CNY 13,707,773,190.91[26]. - The company's total liabilities decreased by 2.64% to CNY 52.12 billion from CNY 53.54 billion at the end of 2016[33]. - The company's net capital decreased by 1.11% to CNY 13.21 billion from CNY 13.36 billion at the end of 2016[33]. - The company's cash and cash equivalents amounted to ¥12.15 billion, representing 18.35% of total assets, a decrease of 0.89 percentage points from December 31, 2016[98]. - The company's short-term financing payables rose to ¥3.90 billion, reflecting a 20.92% increase from ¥3.23 billion at the end of 2016[106]. - The company's receivables decreased significantly by 96.55%, dropping to ¥91.51 million from ¥2.65 billion at the end of 2016[106]. - The company's available-for-sale financial assets decreased by 27.66%, amounting to ¥2.90 billion compared to ¥4.01 billion at the end of 2016[106]. Revenue Streams - Net commission and fee income fell by 32.40% to CNY 757,879,165.86, with brokerage business fees down 26.67%[27]. - Investment income increased by 61.80% to CNY 590,853,289.55, indicating a strong performance in this area[27]. - Other business income surged by 129.75% to CNY 119,029,977.61, reflecting growth in alternative revenue streams[27]. - The investment banking business revenue dropped by 50.22% to CNY 230.69 million from CNY 463.39 million year-on-year[30]. - The asset management business revenue increased by 49.96% to CNY 78.27 million compared to CNY 52.19 million in the previous year[30]. - The corporate financial services business saw a significant decline in revenue, dropping 53.37% to ¥22,452.81 million from ¥48,147.67 million, with a decrease of 12.82 percentage points in its revenue share[62]. - The sales trading business experienced a revenue increase of 53.50%, reaching ¥24,896.64 million, with an increase of 7.73 percentage points in its revenue share[62]. - Investment management revenue rose by 2.63% to ¥25,954.83 million, with a slight decrease of 5.67 percentage points in its profit margin[67]. Risk Management - The company faced various risks including market risk, credit risk, liquidity risk, operational risk, and reputational risk, and has established an internal control and risk management system[12]. - The company has established a comprehensive risk management system to monitor and control various risks, including market, credit, liquidity, operational, and reputational risks[133]. - The company has implemented a three-line defense structure for operational risk management, enhancing self-control and supervision across various departments[138]. - The company has developed a reputation risk management mechanism, focusing on risk identification, assessment, monitoring, and response[139]. - The company has established a comprehensive liquidity risk management framework, ensuring compliance with regulatory requirements and dynamic monitoring of liquidity risk indicators[137]. - The company has established a long-term mechanism for customer asset protection, utilizing advanced technology for identity verification and risk management[142]. - The company has classified brokerage clients based on their financial status and risk tolerance, providing tailored services to enhance investor protection[144]. Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares during the reporting period[2]. - The financial report for the first half of 2017 has not been audited by an accounting firm[3]. - The company has committed to full disclosure of risk management and compliance information in its periodic reports[166]. - The company has established a new subsidiary, Guilin Jiqi Pharmaceutical Co., Ltd., to receive assets as part of a major asset restructuring[167]. - The company has committed to increase its shareholding in Guohai Securities by up to 2% of the total share capital, with a plan to acquire 9.49922 million shares, representing 2.25% of the total share capital[169]. - The company has not encountered any disputes with creditors that would harm its interests[167]. - The company has no significant litigation or arbitration matters during the reporting period[173]. - The company received regulatory measures from the China Securities Regulatory Commission, including a one-year suspension of bond underwriting and asset management product filing[178]. Community Engagement - The company has been actively involved in poverty alleviation efforts since 2011, focusing on regions such as Laibin City and Baise City, with a total investment of 30 million yuan in 2017 alone[196]. - In July 2017, the company donated 300,000 yuan to Guangxi Ziyuan County to improve the production environment for impoverished communities[200]. - The Guangxi Guohai Poverty Alleviation and Education Foundation, established in November 2006, has raised a total of 5.4357 million yuan for poverty alleviation and disaster relief from 2006 to June 2017[199]. - In the first half of 2017, the foundation supported 30 impoverished students from Guangxi to attend university and assisted 14 primary and secondary school students to complete their studies, with total donations amounting to 330,000 yuan[199].