Group 1: Industry Trends - The future of wealth management and investment banking in the Chinese securities industry shows good growth potential, particularly with the establishment of the Sci-Tech Innovation Board [1] - The Chinese securities industry's concentration has been on the rise since 2015, with the market share of the top six listed brokers reaching nearly 51% in the first three quarters of 2018 [2] - The shift towards wealth management is a significant trend, requiring firms to provide comprehensive financial services [2] Group 2: Company Strategy - The company aims to become a securities firm with a focus on fixed income and asset management, as outlined in its 2018-2020 development plan [2] - The company is restructuring its brokerage business to enhance its wealth management capabilities, focusing on product, client, and team improvements [2] - The company emphasizes a client-centered management philosophy to build a future-oriented client management system [2] Group 3: Market Competition - The entry of internet giants into the securities industry has not yet brought revolutionary changes, but firms are leveraging fintech to enhance customer service and marketing [2] - The company recognizes the importance of adapting to technological advancements in the industry [2] Group 4: Risk Management - Derivatives are seen as a crucial component for managing portfolio risks, with the company focusing on bond derivatives for effective hedging [1]

Group 1: Shareholder Structure and Governance - The company has no controlling shareholder or actual controller, with the top five shareholders being a mix of state-owned, private, and collective enterprises, ensuring effective checks and balances in corporate governance [33] - The company currently has no plans for stock buybacks despite a significant drop in stock price [33] Group 2: Financial Performance - For the first three quarters of 2021, the company's consolidated operating revenue increased by 16.53% compared to the same period last year [33] - The company has not disclosed its full-year performance yet, but it is expected to be announced in related announcements [33] Group 3: Business Development and Strategy - The establishment of the Beijing Stock Exchange is seen as a significant opportunity for the company to provide professional financial services to innovative small and medium-sized enterprises [33] - The company aims to become a securities firm with a focus on asset management and fixed income, emphasizing a customer-centric approach and enhancing brand influence [34] Group 4: Technological Advancements - The company is actively investing in financial technology and has developed a three-year plan to enhance its technological capabilities [35] - It integrates various technologies such as cloud computing, big data, and artificial intelligence to improve operational efficiency and customer value [35] Group 5: Sustainable Development Initiatives - The company has become a leader in ESG practices in China, being the first domestic securities firm to join the UN-supported Principles for Responsible Investment [35] - It has initiated various measures to promote sustainable development, including establishing the first domestic ESG research institute [35] Group 6: Market Environment and Future Outlook - The current environment for domestic securities firms is characterized by comprehensive reforms, presenting significant opportunities for the capital market [36] - The company plans to continue focusing on its strategic direction of being a securities firm with fixed income characteristics while enhancing its customer base and asset scale [36]

Main Financial Data [Key Accounting Data and Financial Indicators](index=1&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company faced significant performance pressure in Q3 and YTD 2022, with total operating revenue and net profit declining, despite an 8.54% growth in total assets | Indicator | YTD as of Reporting Period End (CNY) | YTD YoY Change | | :--- | :--- | :--- | | Total Operating Revenue | 1,911,553,194.42 | -20.90% | | Net Profit Attributable to Shareholders of Listed Company | 340,504,746.79 | -45.53% | | Net Cash Flow from Operating Activities | -1,222,003,611.15 | -139.46% | | Basic Earnings Per Share (CNY/share) | 0.08 | -46.67% | | Weighted Average Return on Net Assets | 2.34% | Decrease of 2.08 percentage points | | Total Assets (CNY) | 46,831,835,550.28 | 8.54% (Compared to End of Prior Year) | | Total Equity Attributable to Shareholders of Listed Company (CNY) | 14,569,140,058.71 | 1.04% (Compared to End of Prior Year) | [Non-recurring Gains and Losses Items and Amounts](index=2&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) YTD, non-recurring gains and losses totaled **46.57 million CNY**, primarily from government grants, with financial instrument gains/losses from securities operations classified as recurring | Item | YTD as of Reporting Period End Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 132,909.70 | | Government Grants Recognized in Current Period P&L | 62,454,556.29 | | Other Non-operating Income and Expenses | 19,726,279.69 | | Less: Income Tax Impact | 20,578,436.41 | | Less: Impact on Minority Interests (After Tax) | 15,160,660.42 | | **Total** | **46,574,648.85** | - As a securities operating institution, the company's gains from holding and disposing of financial investment and derivative instruments are considered ordinary business activities, thus fair value changes and investment income are not disclosed as non-recurring gains and losses[5](index=5&type=chunk) [Analysis of Changes in Key Financial Indicators and Reasons](index=2&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%20Analysis%20of%20Changes%20in%20Key%20Financial%20Indicators%20and%20Reasons) YTD declines in net profit and EPS were primarily due to decreased total operating revenue; negative operating cash flow resulted from comprehensive changes in financial assets, client funds, repurchase, and lending | Indicator | Change Percentage | Reason for Change | | :--- | :--- | :--- | | Net Profit Attributable to Shareholders of Listed Company | -45.53% | Primarily due to the year-over-year decrease in the company's total operating revenue during the current period | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses | -52.58% | Primarily due to the year-over-year decrease in net profit attributable to shareholders of the listed company during the current period | | Net Cash Flow from Operating Activities | -139.46% | Primarily due to the comprehensive impact of changes in financial assets held for trading, client funds for securities trading, repurchase business funds, and funds lent out during the current period | Shareholder Information [Common Shareholder Holdings](index=3&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20Total%20Number%20of%20Common%20Shareholders%2C%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%2C%20and%20Top%20Ten%20Shareholders%27%20Holdings%20Table) As of the reporting period end, the company had **241,133** common shareholders, with Beijing Capital Group Co Ltd (12.72%) and Huaxi Xinyu Investment Co Ltd (6.72%) as top holders, and some major shareholder holdings were pledged - As of the reporting period end, the company had a total of **241,133** common shareholders[8](index=8&type=chunk) | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Beijing Capital Group Co Ltd | State-owned Legal Entity | 12.72% | 534,686,400 | | Huaxi Xinyu Investment Co Ltd | Domestic Non-state-owned Legal Entity | 6.72% | 282,520,966 | | Beijing Jingguorui State-owned Enterprise Reform and Development Fund (Limited Partnership) | Other | 4.99% | 210,119,900 | | Beijing Capital Agribusiness Group Co Ltd | State-owned Legal Entity | 4.99% | 210,119,900 | | Zhejiang Hangmin Industrial Group Co Ltd | Domestic Non-state-owned Legal Entity | 3.34% | 140,435,869 | - Among major shareholders, Beijing Capital Group Co Ltd pledged **232,343,200** shares, and Huaxi Xinyu Investment Co Ltd pledged **126,850,000** shares[8](index=8&type=chunk) - Shareholders Huaxi Xinyu Investment Co Ltd and Tang Tianshu participated in margin trading and securities lending business[9](index=9&type=chunk) Other Significant Matters [Changes in Branch Offices](index=4&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20Branch%20Office%20Matters) The company optimized its branch network by establishing a new securities business department, upgrading four existing departments to branch companies, and relocating and renaming one in Hangzhou - During the reporting period, the company established a new securities business department, 'First Capital Securities Co Ltd Foshan Shunde Guotai South Road Securities Business Department'[10](index=10&type=chunk)[11](index=11&type=chunk) - The company upgraded four securities business departments in Chongqing, Hefei, Wuhan, and Fuzhou to branch companies, expanding their business scope accordingly[12](index=12&type=chunk)[13](index=13&type=chunk) - Hangzhou Xihu International Science and Technology Building Securities Business Department relocated and was renamed Hangzhou Jinhua South Road Securities Business Department[14](index=14&type=chunk) [Bond Issuance Status](index=5&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20Bond%20Issuance%20Matters) On August 5, 2022, the company completed a public offering of corporate bonds to professional investors, totaling **1.6 billion CNY**, across two tranches - Pursuant to CSRC approval, on August 5, 2022, the company completed the issuance of 'First Capital Securities Co Ltd 2022 Public Corporate Bonds to Professional Investors (Second Tranche)', totaling **1.6 billion CNY**[15](index=15&type=chunk) Quarterly Financial Statements [Financial Statements](index=5&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20Financial%20Statements) This section presents the company's consolidated balance sheet, income statement, and cash flow statement for the period ending September 30, 2022, reflecting its financial position, operating results, and cash flows [Consolidated Balance Sheet](index=5&type=section&id=1%E3%80%81Consolidated%20Balance%20Sheet) As of September 30, 2022, total assets increased by **8.54%** to **46.83 billion CNY**, driven by financial assets held for trading; total liabilities grew **12.49%** to **31.68 billion CNY**, mainly from repurchase agreements and bonds payable | Key Balance Sheet Items | September 30, 2022 (CNY) | January 1, 2022 (CNY) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **46,831,835,550.28** | **43,147,228,477.52** | **+8.54%** | | Cash and Bank Balances | 8,466,400,023.64 | 8,936,556,654.00 | -5.26% | | Funds Lent Out | 6,200,725,299.95 | 7,481,850,384.38 | -17.12% | | Financial Assets Held for Trading | 20,504,200,775.59 | 16,886,076,520.68 | +21.43% | | **Total Liabilities** | **31,675,413,109.96** | **28,158,078,350.98** | **+12.49%** | | Financial Assets Sold Under Repurchase Agreements | 11,498,737,877.04 | 9,896,623,567.98 | +16.19% | | Client Funds for Securities Trading | 8,684,456,985.52 | 8,743,438,683.21 | -0.67% | | Bonds Payable | 6,098,834,922.90 | 4,188,621,947.63 | +45.61% | | **Total Equity** | **15,156,422,440.32** | **14,989,150,126.54** | **+1.12%** | [Consolidated Income Statement (YTD as of Reporting Period End)](index=7&type=section&id=2%E3%80%81Consolidated%20Income%20Statement%20(YTD%20as%20of%20Reporting%20Period%20End)) In YTD 2022, total operating revenue decreased by **20.90%** to **1.91 billion CNY**, and net profit attributable to parent company shareholders declined by **45.53%** to **341 million CNY**, mainly due to reduced investment income | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | **I. Total Operating Revenue** | **1,911,553,194.42** | **2,416,734,945.29** | **-20.90%** | | Net Fee and Commission Income | 1,293,517,991.21 | 1,248,299,234.37 | +3.62% | | Of which: Net Fee Income from Asset Management Business | 742,845,235.52 | 661,988,961.43 | +12.21% | | Net Interest Income | 157,676,302.07 | 132,148,148.58 | +19.32% | | Investment Income (Losses presented as '-') | 535,516,136.58 | 1,206,305,133.54 | -55.61% | | Gains/Losses from Changes in Fair Value (Losses presented as '-') | -183,135,949.02 | -210,658,199.11 | Loss narrowed | | **III. Operating Profit** | **368,675,398.51** | **834,403,676.94** | **-55.81%** | | **V. Net Profit** | **387,454,827.21** | **692,231,386.25** | **-44.03%** | | Net Profit Attributable to Parent Company Shareholders | 340,504,746.79 | 625,076,328.23 | -45.53% | [Consolidated Cash Flow Statement (YTD as of Reporting Period End)](index=8&type=section&id=3%E3%80%81Consolidated%20Cash%20Flow%20Statement%20(YTD%20as%20of%20Reporting%20Period%20End)) In YTD 2022, net cash flow from operating activities was **-1.22 billion CNY**, a reversal from prior year, mainly due to increased financial assets held for trading; financing activities generated **1.31 billion CNY** net inflow | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | **-1,222,003,611.15** | **3,096,646,256.57** | | Net Cash Flow from Investing Activities | 5,400,781.42 | -384,210,521.78 | | **Net Cash Flow from Financing Activities** | **1,311,441,482.30** | **-49,616,246.23** | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | 1,096,447.56 | -254,211.75 | | **Net Increase in Cash and Cash Equivalents** | **95,935,100.13** | **2,662,565,276.81** | | Cash and Cash Equivalents at Period End | 10,771,091,850.33 | 12,713,548,166.78 | [Audit Opinion](index=9&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20Audit%20Report) The company explicitly stated that the financial information in this quarterly report is unaudited - The company's 2022 third-quarter report is **unaudited**[24](index=24&type=chunk)