Financial Performance - Total operating revenue for the first half of 2020 reached ¥1,419,841,661.44, an increase of 19.95% compared to ¥1,183,696,286.05 in the same period last year[17] - Net profit attributable to shareholders was ¥422,114,974.67, representing a significant increase of 102.02% from ¥208,946,806.85 in the previous year[17] - The net profit after deducting non-recurring gains and losses was ¥415,948,577.22, up 100.87% from ¥207,071,792.43 year-on-year[17] - Basic earnings per share increased to ¥0.12, doubling from ¥0.06 in the same period last year[17] - The weighted average return on equity rose to 4.58%, an increase of 2.16 percentage points compared to 2.42% in the previous year[17] - The total operating profit for the reporting period reached 531,108,322.58 CNY, an increase of 88.89% compared to 281,172,604.94 CNY in the same period last year[84] Assets and Liabilities - Total assets at the end of the reporting period were ¥35,637,141,765.71, a slight increase of 0.18% from ¥35,574,027,476.36 at the end of the previous year[17] - Total liabilities decreased by 1.04% to ¥25,789,333,212.14 from ¥26,059,796,110.94 at the end of the previous year[17] - The net assets attributable to shareholders increased by 3.70% to ¥9,378,201,836.97 from ¥9,043,512,154.22 at the end of the previous year[17] - Total assets decreased by 0.91% to ¥32,755,600,382.83 from the end of the previous year[18] - Total liabilities decreased by 2.51% to ¥23,588,937,552.53 from the end of the previous year[18] - Total equity increased by 3.45% to ¥9,166,662,830.30 from the end of the previous year[18] Cash Flow - The net cash flow from operating activities was ¥1,499,232,889.99, down 51.82% from ¥3,111,856,871.85 in the same period last year[17] - Cash and cash equivalents decreased by 33.20% to ¥1,803,403,659.51 from ¥2,699,743,009.35, influenced by comprehensive changes in operating, investing, and financing activities[74] - The company's financing activities generated a net cash flow of ¥332,430,698.61, a significant improvement from a negative cash flow of ¥448,405,015.08 in the previous period[74] - The company's investment activities generated a net cash flow of -¥28,694,829.76, reflecting adjustments in investment strategies[74] Investment and Asset Management - The company achieved total revenue of 1.42 billion yuan, representing a year-on-year growth of 19.95%, and a net profit attributable to shareholders of 422 million yuan, up 102.02% year-on-year[45] - As of June 30, 2020, the company's asset management business had a total entrusted management scale of 1260.93 billion yuan, a decrease of 325.84 billion yuan compared to the end of 2019[46] - The company’s public fund management subsidiary, Chuangjin Hexin, reported a total entrusted management amount of 3968.48 billion yuan, an increase of 18.53% compared to the end of the previous year[50] - The total entrusted management funds at the end of the reporting period reached ¥39,684,798.29, an increase of 18.5% from ¥33,480,239.33 in the previous year[53] - The average entrusted management funds during the period was ¥37,631,196.97, compared to ¥34,479,030.53 in the previous year, reflecting a growth of 6.2%[54] Risk Management - The company has identified significant risks including market risk, credit risk, operational risk, liquidity risk, reputation risk, and money laundering risk[116] - The company has established a comprehensive anti-money laundering internal control mechanism and organizational framework[129] - The company has implemented measures to monitor suspicious transactions and prevent money laundering risks during customer account opening and transaction processes[129] - The company has adopted a risk management approach that includes risk identification, assessment, and control measures across all business processes[126] Shareholder Commitments - The actual controller, Shouchuang Group, committed to notify the company three trading days in advance before reducing its shares, with a reduction limit of 25% of its total shares held within two years after the lock-up period[134] - The company and its major shareholders promised to ensure that no unfair benefits are transferred to other entities or individuals[136] - The company will publicly disclose reasons for any failure to fulfill commitments and apologize to shareholders and the public[137] - Major shareholders agreed to not transfer their shares in First Capital until violations are corrected[137] Corporate Governance - The company has established a diverse equity structure with no controlling shareholder, promoting effective corporate governance and sustainable development[39] - The company has not engaged in any major asset or equity sales during the reporting period[104] - The company has not utilized any fundraising during the reporting period[102] Community Engagement - The company has been recognized as a "Gold Medal Caring Enterprise" for its poverty alleviation efforts in Pingjiang County, Hunan Province[179] - The company donated 3 million yuan to the Hubei Charity Federation for pandemic relief efforts[181] - The company plans to establish 1-2 additional Dream Centers or remote education systems to support quality education in impoverished areas[180] - The company is committed to continuing its poverty alleviation initiatives, focusing on industrial, educational, and consumption poverty alleviation strategies[180]

[Important Notice](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board and management guarantee the report's accuracy and completeness, noting the Q3 financial report is unaudited - The company's board of directors, supervisory board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this report and assume legal responsibility[2](index=2&type=chunk) - The company's 2019 third-quarter financial report is unaudited by an accounting firm[2](index=2&type=chunk) [Company Profile](index=3&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section outlines the company's key financial performance, indicators, and shareholder structure for the reporting period [Key Accounting Data and Financial Indicators](index=3&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company reported strong Q1-Q3 2019 growth, with revenue up 40.89% and net profit attributable to parent company surging 176.30%, demonstrating significantly improved profitability 2019 Q1-Q3 and Q3 Key Financial Indicators | Indicator | Year-to-Date (2019) | Prior Year Period | YoY Change | Current Period (Q3 2019) | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 1,777,270,774.64 | 1,261,490,125.39 | 40.89% | 593,574,488.59 | 494,461,584.05 | 20.04% | | Net Profit Attributable to Parent Company (Yuan) | 346,354,394.25 | 125,353,403.50 | 176.30% | 137,407,587.40 | 53,160,475.17 | 158.48% | | Basic Earnings Per Share (Yuan/share) | 0.10 | 0.04 | 150.00% | 0.04 | 0.02 | 100.00% | | Weighted Average Return on Net Assets | 3.97% | 1.41% | Up 2.56 percentage points | 1.56% | 0.60% | Up 0.96 percentage points | Key Asset and Liability Indicators at Period-End | Indicator | End of Current Period (2019-09-30) | End of Prior Year (2018-12-31) | Change | | :--- | :--- | :--- | :--- | | Total Assets (Yuan) | 34,877,660,054.83 | 33,564,250,086.69 | 3.91% | | Net Assets Attributable to Listed Company Shareholders (Yuan) | 8,871,026,792.32 | 8,802,333,606.65 | 0.78% | - The company retrospectively adjusted prior period accounting data due to the implementation of new financial instrument standards and Ministry of Finance financial statement format requirements[4](index=4&type=chunk)[6](index=6&type=chunk) - Total non-recurring gains and losses for the reporting period amounted to **2.52 million Yuan**, primarily from government subsidies[8](index=8&type=chunk) [Shareholder Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) The company had 233,831 common shareholders at period-end, with top three holding 15.18%, 13.27%, and 7.06%, and partial share pledges by the largest and fourth-largest shareholders - As of the end of the reporting period, the company had a total of **233,831 common shareholders**[10](index=10&type=chunk) Top Three Shareholders' Holdings | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Huaxi Xinyu Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 15.18% | 531,588,400 | | Beijing Capital Group Co., Ltd. | State-Owned Legal Person | 13.27% | 464,686,400 | | Zhejiang Hangmin Industrial Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 7.06% | 247,171,786 | - The largest shareholder, Huaxi Xinyu Investment Co., Ltd., pledged **510,618,400 shares**, and the fourth-largest shareholder, Nengxing Holdings Group Co., Ltd., pledged **191,599,930 shares**[10](index=10&type=chunk) [Significant Events](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section details significant financial data changes, key event progress, and the company's financial assets measured at fair value [Analysis of Significant Changes in Financial Data and Indicators](index=7&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) The company experienced significant changes in financial data and indicators due to business scale and new financial instrument standards, impacting both asset and profit components Balance Sheet Key Item Changes and Reasons | Item | Period-End Balance (Yuan) | Change from Year-Start | Reason for Change | | :--- | :--- | :--- | :--- | | Monetary Funds | 7,480,802,687.94 | 43.56% | Primarily due to increased client funds | | Funds Lent | 3,869,742,539.19 | 63.36% | Primarily due to increased scale of funds lent | | Financial Assets Purchased Under Resale Agreements | 1,722,692,539.91 | -63.66% | Primarily due to decreased scale of bond repurchase and stock pledge repurchase businesses | | Funds Borrowed | 405,562,083.33 | -79.72% | Primarily due to decreased interbank borrowings | | Client Funds for Securities Trading | 6,973,264,487.75 | 46.11% | Primarily due to increased brokerage client settlement funds | Income Statement Key Item Changes and Reasons | Item | Current Period Amount (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | | Net Income from Investment Banking Fees | 252,637,876.49 | 63.74% | Primarily due to increased net income from securities underwriting business | | Fair Value Change Gains | 217,979,362.35 | - | Primarily due to increased fair value change gains from trading financial assets | | Income Tax Expense | 64,036,786.51 | 364.46% | Primarily due to increased profit | | Minority Interest Income | 49,968,803.52 | 632.43% | Primarily due to increased net profit of controlled subsidiaries in the current period | [Progress of Significant Events](index=8&type=section&id=%E4%BA%8C%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company completed a significant subsidiary capital increase and bond issuance, appointed a new CIO, and observed share reduction plans by major shareholders - The company completed a **1.8 billion Yuan** capital increase for its wholly-owned subsidiary, Shenzhen First Capital Innovation Capital Management Co., Ltd., raising its registered capital to **3 billion Yuan**[16](index=16&type=chunk)[18](index=18&type=chunk) - Shareholders Zhejiang Hangmin, Nengxing Holdings, and Huaxi Xinyu all disclosed and implemented share reduction plans, with some plans still ongoing[18](index=18&type=chunk) - In August 2019, the company successfully issued **500 million Yuan** in 3-year subordinated bonds for securities companies, with a coupon rate of **5.5%**[19](index=19&type=chunk) - The company appointed Mr. He Jiang as its Chief Information Officer, and his qualification has been approved by regulatory authorities[19](index=19&type=chunk) [Financial Assets Measured at Fair Value](index=10&type=section&id=%E5%9B%9B%E3%80%81%E4%BB%A5%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E8%AE%A1%E9%87%8F%E7%9A%84%E9%87%91%E8%9E%8D%E8%B5%84%E4%BA%A7) As of the reporting period end, the company held **15.56 billion Yuan** in financial assets measured at fair value, predominantly in bonds, funded by proprietary capital Financial Assets Measured at Fair Value (Period-End) | Asset Category | Period-End Amount (Yuan) | | :--- | :--- | | Equity | 535,084,072.27 | | Stocks | 996,570,792.12 | | Funds | 833,869,364.08 | | Bonds | 12,596,572,570.20 | | Trust Products | 223,759,688.22 | | Other | 374,350,364.23 | | **Total** | **15,560,206,851.12** | [Financial Statements](index=12&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's unaudited consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements, and explains adjustments [Financial Statements](index=12&type=section&id=%E4%B8%80%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This chapter presents the company's unaudited consolidated and parent company financial statements, highlighting stable asset growth and significant profitability improvement in Q1-Q3 2019 [Consolidated Balance Sheet](index=12&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2019, total assets reached **34.88 billion Yuan**, up 3.91% from year-start, with total liabilities at **25.55 billion Yuan** and parent company equity at **8.87 billion Yuan** Consolidated Balance Sheet Key Items | Item | September 30, 2019 (Yuan) | December 31, 2018 (Yuan) | | :--- | :--- | :--- | | Total Assets | 34,877,660,054.83 | 33,564,250,086.69 | | Total Liabilities | 25,547,785,082.73 | 24,400,225,811.02 | | Total Equity Attributable to Parent Company Owners | 8,871,026,792.32 | 8,802,333,606.65 | [Consolidated Income Statement](index=15&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1-Q3 2019, the company achieved total operating revenue of **1.78 billion Yuan**, up 40.89%, and net profit attributable to parent company shareholders of **346 million Yuan**, a 176.30% surge Consolidated Income Statement Key Items (January-September 2019) | Item | January-September 2019 (Yuan) | January-September 2018 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,777,270,774.64 | 1,261,490,125.39 | 40.89% | | Operating Profit | 457,009,365.52 | 134,103,936.81 | 240.79% | | Net Profit Attributable to Parent Company Shareholders | 346,354,394.25 | 125,353,403.50 | 176.30% | | Basic Earnings Per Share (Yuan/share) | 0.10 | 0.04 | 150.00% | [Consolidated Cash Flow Statement](index=19&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In Q1-Q3 2019, net cash flow from operating activities significantly improved to **2.31 billion Yuan** from a **1.21 billion Yuan** outflow in the prior year, with period-end cash and cash equivalents at **9.09 billion Yuan** Consolidated Cash Flow Statement Summary (January-September 2019) | Item | January-September 2019 (Yuan) | January-September 2018 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 2,308,334,090.39 | -1,206,627,478.30 | | Net Cash Flow from Investing Activities | 53,490,559.54 | -197,199,138.13 | | Net Cash Flow from Financing Activities | -11,641,560.94 | 54,559,970.14 | | Period-End Cash and Cash Equivalents Balance | 9,088,276,871.17 | 6,786,584,814.97 | [Explanation of Financial Statement Adjustments](index=22&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E8%B0%83%E6%95%B4%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company adopted new financial instrument standards and revised financial statement formats effective January 1, 2019, resulting in retrospective adjustments to opening financial statements, mainly reclassifying financial assets and impacting equity - The company began implementing new financial instrument standards and new financial enterprise financial statement formats on January 1, 2019[46](index=46&type=chunk)[47](index=47&type=chunk) - The accounting policy change led to adjustments in the consolidated balance sheet as of January 1, 2019, for example, reclassifying "financial assets measured at fair value through profit or loss" and "available-for-sale financial assets" to new items such as "trading financial assets" and "other equity instrument investments"[41](index=41&type=chunk) - This adjustment impacted the opening owner's equity in the consolidated statements, with retained earnings decreasing by **365 million Yuan**, other comprehensive income increasing by **225 million Yuan**, and total equity attributable to parent company owners decreasing by **252 million Yuan**[42](index=42&type=chunk)[43](index=43&type=chunk)

[Important Notices, Table of Contents and Definitions](index=2&type=section&id=Section%201%20Important%20Notices%2C%20Table%20of%20Contents%20and%20Definitions) [Important Notices](index=2&type=section&id=Important%20Notices) The company's management guarantees the truthfulness, accuracy, and completeness of this unaudited semi-annual report, which plans no profit distribution - The company's responsible persons and accounting heads guarantee the authenticity, accuracy, and completeness of this semi-annual financial report[2](index=2&type=chunk) - The company's H1 2019 financial report has **not been audited** by an accounting firm[2](index=2&type=chunk) - The company plans **no cash dividend, bonus shares, or capitalization of public reserves** for the first half of 2019[2](index=2&type=chunk) - The report highlights cyclical risks in the securities industry and other operational risks such as market, credit, and liquidity risks[2](index=2&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) The report comprises eleven sections covering the company's basic information, financial data, business overview, operational analysis, and other core content [Definitions](index=4&type=section&id=Definitions) This section defines key terms used in the report, including company abbreviations, major shareholders, regulators, and core business segments [Company Profile and Key Financial Indicators](index=5&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Profile](index=5&type=section&id=I.%20Company%20Profile) First Capital Securities Co, Ltd (stock code: 002797) is a securities company listed on the Shenzhen Stock Exchange, with Liu Xuemin as its legal representative | Item | Content | | :--- | :--- | | Stock Ticker | First Capital | | Stock Code | 002797 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Liu Xuemin | [Key Accounting Data and Financial Indicators](index=6&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved significant performance growth in H1 2019, with operating revenue up 54.32% to ¥1.18 billion and net profit attributable to parent up 189.43% to ¥209 million H1 2019 Key Financial Data (Consolidated) | Indicator | Current Period | Prior Year Period (Adjusted) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 1,183,696,286.05 | 767,028,541.34 | 54.32% | | Net Profit Attributable to Shareholders (Yuan) | 208,946,806.85 | 72,192,928.33 | 189.43% | | Net Cash Flow from Operating Activities (Yuan) | 3,111,856,871.85 | 266,171,403.80 | 1,069.12% | | Basic Earnings Per Share (Yuan/Share) | 0.06 | 0.02 | 200.00% | | Weighted Average Return on Equity | 2.42% | 0.82% | +1.60 p.p. | | **Period-End Indicators** | **End of Current Period** | **End of Prior Year (Adjusted)** | **Change from Prior Year-End** | | Total Assets (Yuan) | 35,198,796,334.30 | 33,564,250,086.69 | 4.87% | | Net Assets Attributable to Shareholders (Yuan) | 8,733,533,414.92 | 8,802,333,606.65 | -0.78% | - The company retrospectively adjusted prior-year accounting data due to the adoption of new financial instrument standards and revised financial statement formats[10](index=10&type=chunk)[14](index=14&type=chunk) [Non-recurring Profit and Loss Items and Amounts](index=7&type=section&id=VI.%20Non-recurring%20Profit%20and%20Loss%20Items%20and%20Amounts) Non-recurring profit and loss for the period totaled ¥1.88 million, primarily from government subsidies, while fair value changes from financial instruments were classified as recurring H1 2019 Non-recurring Profit and Loss Items | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 67,063.66 | | Government Grants Included in Current Profit/Loss | 3,080,476.67 | | Other Non-operating Income and Expenses | -205,346.05 | | Less: Income Tax Impact | 735,548.57 | | Less: Minority Interest Impact (After Tax) | 331,631.29 | | **Total** | **1,875,014.42** | [Parent Company's Net Capital and Risk Control Indicators](index=8&type=section&id=VII.%20Parent%20Company's%20Net%20Capital%20and%20Risk%20Control%20Indicators) The parent company's risk control indicators remained robust and improved, with net capital reaching ¥6.48 billion and key metrics like risk coverage ratio showing enhanced risk resilience Parent Company's Key Risk Control Indicators | Item | End of Current Period | End of Prior Year | Change | | :--- | :--- | :--- | :--- | | Net Capital (Yuan) | 6,476,676,450.54 | 6,026,628,141.26 | 7.47% | | Risk Coverage Ratio | 174.80% | 146.92% | +27.88 p.p. | | Capital Leverage Ratio | 16.55% | 15.26% | +1.29 p.p. | | Liquidity Coverage Ratio | 184.87% | 161.51% | +23.36 p.p. | | Net Stable Funding Ratio | 160.86% | 159.52% | +1.34 p.p. | [Company Business Overview](index=9&type=section&id=Section%203%20Company%20Business%20Overview) [Principal Activities](index=9&type=section&id=I.%20Principal%20Activities%20of%20the%20Company%20during%20the%20Reporting%20Period) The company provides diversified financial services across five main segments: asset management, fixed income, investment banking, securities brokerage and credit, and private equity - The company's main business is divided into five segments: - **Asset Management**: Includes securities firm asset management, public funds, and segregated account business - **Fixed Income**: Covers underwriting, sales, and investment trading - **Investment Banking**: Primarily equity, debt financing, and financial advisory through subsidiary YCYT - **Securities Brokerage and Credit**: Offers brokerage, margin financing, and stock pledge services, plus futures via YCQH - **Private Equity Fund Management & Alternative Investment**: Conducted through subsidiaries YCTZ and CYCX[20](index=20&type=chunk)[21](index=21&type=chunk) [Major Changes in Key Assets](index=9&type=section&id=II.%20Major%20Changes%20in%20Key%20Assets) Key assets changed significantly, with cash and margin funds increasing due to client deposits and business expansion, while new accounting standards created a ¥15.06 billion trading financial assets category Major Asset Changes | Asset Item | Period-End Balance (Billion Yuan) | Change from Prior Year-End (Billion Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 9.68 | +2.73 | +39.27% | | Margin Accounts | 3.50 | +1.13 | +47.54% | | Trading Financial Assets | 15.06 | +15.06 | N/A | | Financial Assets Purchased under Resale Agreements | 2.52 | -2.22 | -46.85% | [Core Competitiveness Analysis](index=10&type=section&id=III.%20Core%20Competitiveness%20Analysis) The company's core competitiveness lies in its comprehensive asset management system, strong brand in the fixed income market, and a supportive corporate culture - The company's strategic goal is to become "a securities company with fixed income characteristics and asset management as its core"[25](index=25&type=chunk) - The comprehensive asset management business integrates securities firm asset management, public funds, and private equity fund management, focusing on fixed income and active management[25](index=25&type=chunk) - The **fixed income business has a strong brand advantage**, being one of only five securities firms with "National Interbank Bond Market Maker" status, with cash bond trading volume in the top tier for over 10 years[26](index=26&type=chunk)[27](index=27&type=chunk) - The company has cultivated an "open, innovative, inclusive, and collaborative" corporate culture and established market-oriented human resources policies, supporting its sustainable development[28](index=28&type=chunk) [Discussion and Analysis of Operations](index=12&type=section&id=Section%204%20Discussion%20and%20Analysis%20of%20Operations) [Overview](index=12&type=section&id=I.%20Overview) In H1 2019, the company capitalized on market reforms to achieve significant growth, with operating revenue reaching ¥1.18 billion and net profit attributable to parent hitting ¥209 million - The stock market rebound in H1, with the **Shanghai Composite Index rising 19.45%**, provided a favorable environment for the securities business[30](index=30&type=chunk) H1 2019 Performance Overview | Indicator | Amount (Billion Yuan) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 1.18 | 54.32% | | Net Profit Attributable to Parent | 0.21 | 189.43% | - The company's credit business revenue declined due to frequent credit risk events in a downward economic cycle, leading to increased impairment provisions for financial assets[30](index=30&type=chunk) [Analysis of Principal Business](index=12&type=section&id=II.%20Analysis%20of%20Principal%20Business) The company's core businesses progressed well, with breakthroughs in asset management, growth in fixed income, and increased underwriting in investment banking, though brokerage profit margins declined Operating Performance by Business Segment | Business Segment | Operating Revenue (Yuan) | Operating Expenses (Yuan) | Operating Profit Margin | Operating Revenue YoY Change | | :--- | :--- | :--- | :--- | :--- | | Securities Brokerage & Credit | 241,888,026.31 | 396,595,932.53 | -63.96% | -13.50% | | Proprietary Investment & Trading | 125,457,061.54 | 6,944,651.35 | 94.46% | - | | Fixed Income | 147,149,050.71 | 45,529,736.21 | 69.06% | 36.62% | | Investment Banking | 46,488,070.40 | 69,191,398.73 | -48.84% | 103.38% | | Asset Management | 412,410,929.30 | 227,347,950.74 | 44.87% | 45.51% | | PE Fund Management & Alternative Investment | 109,056,340.76 | 48,130,621.09 | 55.87% | 136.29% | [1. Asset Management Business](index=12&type=section&id=1%20%E3%80%81%E8%B5%84%E4%BA%A7%E7%AE%A1%E7%90%86%E4%B8%9A%E5%8A%A1) The asset management business enhanced its active management capabilities, successfully launching China's first intellectual property securitization product - Successfully issued China's first standardized intellectual property securitization product, "Wenke No. 1 ABS", achieving a breakthrough[31](index=31&type=chunk)[32](index=32&type=chunk) Securities Firm Asset Management Scale | Category | June 30, 2019 (Billion Yuan) | Dec 31, 2018 (Billion Yuan) | Change | | :--- | :--- | :--- | :--- | | Collective Asset Management | 4.08 | 4.44 | -8.26% | | Directional/Single Asset Management | 176.50 | 205.70 | -14.20% | | Specialized Asset Management | 1.51 | 0.98 | 54.86% | | **Total** | **182.09** | **211.12** | **-13.75%** | CJS Fund Management Business | Item | H1 2019 | FY 2018 | | :--- | :--- | :--- | | Total AUM at Period-End (Billion Yuan) | 340.85 | 353.91 | | Of which: Public Funds (Billion Yuan) | 15.01 | 15.21 | | Of which: Segregated Accounts (Billion Yuan) | 325.84 | 338.69 | [2. Fixed Income Business](index=14&type=section&id=2%E3%80%81%E5%9B%BA%E5%AE%9A%E6%94%B6%E7%9B%8A%E4%B8%9A%E5%8A%A1) The fixed income business demonstrated strong performance, with product sales value reaching ¥157.08 billion and bond trading volume surging by 57.95% to ¥1.66 trillion Fixed Income Product Sales | Indicator | H1 2019 | H1 2018 | YoY Change | | :--- | :--- | :--- | :--- | | Number of Products Sold | 2,162 | 1,942 | +11.33% | | Sales Value (Billion Yuan) | 157.08 | 124.69 | +25.98% | Fixed Income Product Trading | Product Type | H1 2019 Trading Volume (Billion Yuan) | H1 2018 Trading Volume (Billion Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Bonds | 1,663.96 | 1,053.45 | +57.95% | [3. Investment Banking Business](index=15&type=section&id=3%E3%80%81%E6%8A%95%E8%B5%84%E9%93%B6%E8%A1%8C%E4%B8%9A%E5%8A%A1) The investment banking business, operated by subsidiary YCYT, completed seven projects with a total underwriting value of ¥4.04 billion, an increase from the prior year YCYT Securities Underwriting Business | Issuance Type | of Deals (H1 2019) | Underwriting Value (Million Yuan) | | :--- | :--- | :--- | | Seasoned Equity Offering | 1 | 445.80 | | Corporate Bonds | 5 | 3,297.64 | | Other Fixed Income Products | 1 | 297.00 | | **Total** | **7** | **4,040.44** | [4. Securities Brokerage and Credit Business](index=15&type=section&id=4%E3%80%81%E8%AF%81%E5%88%B8%E7%BB%8F%E7%BA%AA%E5%8F%8A%E4%BF%A1%E7%94%A8%E4%B8%9A%E5%8A%A1) The brokerage business saw growth in assets under custody and margin financing, while the stock pledge business focused on managing existing risks with no new projects - A-share stock trading market share **decreased from 0.46% to 0.40%**[49](index=49&type=chunk) - The scale of the margin financing and securities lending business increased, with a **period-end balance of ¥3.41 billion**[50](index=50&type=chunk) - The stock pledge repurchase business focused on controlling existing risks, with **no new projects initiated in principle**[50](index=50&type=chunk) [5. Private Equity Fund Management & Alternative Investment Business](index=16&type=section&id=5%E3%80%81%E7%A7%81%E5%8B%9F%E8%82%A1%E6%9D%83%E5%9F%BA%E9%87%91%E7%AE%A1%E7%90%86%E4%B8%8E%E5%8F%A6%E7%B1%BB%E6%8A%95%E8%B5%84%E4%B8%9A%E5%8A%A1) The private equity business managed 17 funds with a committed capital of ¥9.47 billion, while the alternative investment arm focused on emerging industries with ¥935 million invested - YCTZ managed 17 funds with a total committed capital of **¥9.47 billion**, focusing on strategic emerging industries and advanced manufacturing[53](index=53&type=chunk) - CYCX, the alternative investment arm, had a cumulative investment of **¥935 million**, concentrating on environmental protection, new energy, and professional technical services[54](index=54&type=chunk) [（三）营业收入构成](index=18&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E8%90%A5%E4%B8%9A%E6%94%B6%E5%85%A5%E6%9E%84%E6%88%90) The company's revenue structure shifted significantly, with fee and commission income remaining the largest contributor, while a positive swing in fair value gains drove overall growth H1 2019 Operating Revenue Composition | Item | Amount (Yuan) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Net Fee and Commission Income | 716,600,293.32 | 60.54% | 44.41% | | Net Interest Income | -57,527,690.96 | -4.86% | - | | Investment Income | 369,778,990.73 | 31.24% | 18.23% | | Gains from Fair Value Changes | 125,232,612.40 | 10.58% | - | | Other Business Income | 29,211,098.20 | 2.47% | -5.27% | | **Total Operating Revenue** | **1,183,696,286.05** | **100.00%** | **54.32%** | - **Gains from fair value changes increased by ¥202 million YoY**, primarily due to gains on trading financial assets[60](index=60&type=chunk) [Analysis of Assets and Liabilities](index=20&type=section&id=IV.%20Analysis%20of%20Assets%20and%20Liabilities) As of period-end, total assets were ¥35.20 billion and total liabilities were ¥26.00 billion, with trading financial assets becoming the largest asset category due to new accounting standards - The adoption of new financial instrument standards led to the reclassification of items like "financial assets at fair value through profit or loss" to new accounts such as "trading financial assets"[72](index=72&type=chunk) Key Balance Sheet Item Changes (vs. Year-End) | Item | Reason for Change | | :--- | :--- | | Cash and Bank Balances (+51.70%) | Primarily due to an increase in client funds | | Margin Accounts (+47.54%) | Primarily due to an increase in the scale of margin financing | | Financial Assets Purchased under Resale Agreements (-46.85%) | Primarily due to a decrease in bond and stock pledge repurchase business | | Borrowings (+50.37%) | Primarily due to an increase in interbank and refinancing borrowings | | Accounts Payable to Brokerage Clients (+47.85%) | Primarily due to an increase in client trading settlement funds | Pledged and Restricted Assets | Item | Book Value at Period-End (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Bank Balances | 50,467,653.74 | Risk reserve funds | | Trading Financial Assets | 8,623,041,878.07 | Collateral for repurchase agreements | | Fixed Assets | 1,608,162.52 | Title certificates not yet obtained | [Investment Analysis](index=24&type=section&id=V.%20Investment%20Analysis) The company's investments, totaling ¥15.14 billion at fair value, were primarily in bonds (¥12.38 billion) and were funded by the company's own capital Financial Assets at Fair Value (Period-End) | Asset Class | Period-End Amount (Yuan) | Funding Source | | :--- | :--- | :--- | | Bonds | 12,375,938,322.90 | Own Funds | | Funds | 847,254,812.07 | Own Funds | | Stocks | 462,404,208.05 | Own Funds | | Trust Products | 118,798,584.35 | Own Funds | | Others | 1,340,083,219.77 | Own Funds | | **Total** | **15,143,485,147.14** | **-** | [Analysis of Major Subsidiaries and Investees](index=28&type=section&id=VII.%20Analysis%20of%20Major%20Subsidiaries%20and%20Investees) The performance of major subsidiaries was mixed, with CYCX, YCTZ, and CJS Fund showing strong profit growth, while YCQH swung to a loss H1 2019 Performance of Major Subsidiaries and Investees | Company Name | Business Nature | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | | First Capital Investment Management Co., Ltd. | Private Equity Fund Management | 28,573,329.09 | 4,853,969.24 | | Shenzhen First Capital Innovation Capital Management Co., Ltd. | Equity Investment | 56,908,666.90 | 27,871,662.13 | | CJS Fund Management Co., Ltd. | Fund Management | 203,707,609.71 | 32,958,578.29 | | First Capital Securities Underwriting and Sponsorship Co., Ltd. | Securities Underwriting & Sponsorship | 58,763,156.66 | -11,272,385.15 | | First Capital Futures Co., Ltd. | Futures Brokerage | 9,743,911.36 | -477,633.97 | | Invesco Great Wall Fund Management Co., Ltd. (Investee) | Fund Management | 1,058,506,078.86 | 333,757,668.61 | - The performance of CYCX, YCTZ, CJS Fund, and YCYT improved significantly due to gains from project exits, increased investment income, and business revenue growth[86](index=86&type=chunk) [Risks and Countermeasures](index=29&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces market, credit, operational, and other risks, which are managed through a comprehensive risk framework including VaR models and internal credit ratings - The company's main risks include: - **Market Risk**: Arising from proprietary investments, affected by interest rates and stock prices - **Credit Risk**: From bond issuers, counterparties, and financing business defaults - **Operational Risk**: Losses from personnel, internal processes, systems, or external events - **Liquidity Risk**: Inability to obtain sufficient funds at a reasonable cost in a timely manner - **Reputational Risk** and **Money Laundering Risk**[88](index=88&type=chunk)[89](index=89&type=chunk) - The company has established a risk management system with measures including risk limits, daily mark-to-market, internal credit ratings, counterparty credit lines, stress testing, and contingency plans[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) [Significant Matters](index=32&type=section&id=Section%205%20Significant%20Matters) [Fulfillment of Shareholder Commitments](index=32&type=section&id=III.%20Fulfillment%20of%20Commitments%20by%20the%20Company's%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20Other%20Relevant%20Parties) Major shareholders' commitments regarding share lock-ups and price stability were fulfilled, while long-term commitments on shareholding reduction and related-party transactions remain in effect - Commitments by major shareholders like Huaxi Xinyu and Capital Group regarding the **36-month lock-up period post-IPO were fulfilled** in May 2019[96](index=96&type=chunk)[97](index=97&type=chunk) - The commitment to stabilize the stock price (within three years of listing) has been fulfilled[96](index=96&type=chunk)[98](index=98&type=chunk) - Long-term commitments regarding share reduction intentions, avoiding competition, and regulating related-party transactions are still in their term and have been strictly followed[96](index=96&type=chunk) [Litigation Matters](index=37&type=section&id=VIII.%20Litigation%20Matters) The company has no material litigation but is involved in several ordinary lawsuits concerning stock pledge repurchase disputes, some of which are in enforcement - The company is involved in multiple stock pledge repurchase disputes with parties including Hongao Huimu, Foshan Zhongji, and others, involving stocks like "*ST Oupu" and "*ST Feima"[107](index=107&type=chunk)[108](index=108&type=chunk) - Some stock pledge dispute cases have received court rulings permitting the auction or sale of the pledged shares and are currently in the enforcement process[108](index=108&type=chunk) [Other Significant Matters](index=43&type=section&id=XVI.%20Other%20Significant%20Matters) The company advanced its non-public offering of A-shares, established a new Sichuan branch, and received a B-class BB rating from regulators for 2019 - The company's board and shareholders' meeting approved the **non-public offering of A-shares** in April and May 2019, respectively[129](index=129&type=chunk) - A new Sichuan branch was established, and the Shenzhen branch was relocated during the reporting period[130](index=130&type=chunk)[131](index=131&type=chunk)[133](index=133&type=chunk) - The company's **2019 classification and evaluation result was B-class BB**[134](index=134&type=chunk) [Changes in Share Capital and Shareholders](index=48&type=section&id=Section%206%20Changes%20in%20Share%20Capital%20and%20Shareholders) [Changes in Share Capital](index=48&type=section&id=I.%20Changes%20in%20Share%20Capital) The company's share structure changed significantly as 1.58 billion restricted shares, representing 45.22% of total capital, became unrestricted and tradable in May 2019 Share Capital Changes | Share Type | Before Change (Shares) | Change (+/- Shares) | After Change (Shares) | | :--- | :--- | :--- | :--- | | Restricted Shares | 1,583,950,986 | -1,583,950,986 | 0 | | Unrestricted Shares | 1,918,449,014 | +1,583,950,986 | 3,502,400,000 | | **Total Shares** | **3,502,400,000** | **0** | **3,502,400,000** | - The change was due to the expiration of the lock-up period for pre-IPO shares held by five shareholders[144](index=144&type=chunk) [Number of Shareholders and Shareholdings](index=49&type=section&id=II.%20Number%20of%20Shareholders%20and%20Shareholdings) As of period-end, the company had 237,444 common shareholders, with the top four holding a combined 44.23%, and some major shareholders having pledged their shares - The total number of common shareholders at the end of the reporting period was **237,444**[148](index=148&type=chunk) Top Ten Common Shareholders' Holdings | Shareholder Name | Shareholding Ratio | Number of Shares | Share Status | | :--- | :--- | :--- | :--- | | Huaxi Xinyu Investment Co., Ltd. | 15.41% | 539,718,400 | Pledged | | Beijing Capital Group Co., Ltd. | 13.27% | 464,686,400 | - | | Nengxing Holdings Group Co., Ltd. | 8.49% | 297,334,400 | Pledged | | Zhejiang Hangmin Industrial Group Co., Ltd. | 7.06% | 247,171,786 | - | | Tibet Qianning Venture Capital Co., Ltd. | 2.79% | 97,637,938 | - | [Changes in Controlling Shareholder or De Facto Controller](index=50&type=section&id=III.%20Changes%20in%20Controlling%20Shareholder%20or%20De%20Facto%20Controller) The company has no controlling shareholder or de facto controller, and this status remained unchanged during the reporting period - The company has **no controlling shareholder or de facto controller**, and there was no change in this situation during the reporting period[153](index=153&type=chunk) [Information on Corporate Bonds](index=53&type=section&id=Section%209%20Information%20on%20Corporate%20Bonds) [Basic Information on Corporate Bonds](index=53&type=section&id=I.%20Basic%20Information%20on%20Corporate%20Bonds) The company has several corporate and subordinated bonds outstanding, with one bond redeemed during the period and all others having their interest paid on schedule Overview of Outstanding Corporate Bonds | Bond Ticker | Bond Code | Maturity Date | Outstanding Balance (Million Yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | | 16 YC 02 | 112484 | 2021-11-29 | 800.00 | 3.70% | | 16 YC 03 | 112492 | 2020-12-13 | 800.00 | 4.25% | | 16 YC C1 | 118952 | 2021-09-26 | 1,000.00 | 3.69% | | 16 YC C2 | 118954 | 2020-10-25 | 1,200.00 | 3.64% | | 17 YC C1 | 118963 | 2022-08-08 | 600.00 | 5.80% | | 18 YC 01 | 112632 | 2020-01-16 | 600.00 | 5.95% | | 18 YC 02 | 112633 | 2023-01-16 | 200.00 | 6.25% | | 18 YC C1 | 118982 | 2021-07-09 | 600.00 | 6.50% | - The "16 YC 01" bond was redeemed and its principal and interest were fully paid on January 19, 2019[159](index=159&type=chunk) [Corporate Bond Credit Rating Information](index=55&type=section&id=IV.%20Corporate%20Bond%20Credit%20Rating%20Information) The company's credit rating and the ratings of its bonds were maintained by Shanghai Brilliance Credit Rating, reflecting a stable outlook and good solvency - On May 29, 2019, Shanghai Brilliance maintained the **AA+ rating** for "16 YC 02", "16 YC 03", "18 YC 01", and "18 YC 02" in its tracking review[166](index=166&type=chunk) - The tracking review for "18 YC C1" maintained its **AA rating**[166](index=166&type=chunk) [Financial Indicators Related to Solvency](index=56&type=section&id=VIII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators%20for%20the%20Last%202%20Years%20as%20of%20the%20End%20of%20the%20Reporting%20Period) The company's solvency indicators remained robust, with improved liquidity ratios and a significantly higher EBITDA interest coverage ratio, indicating enhanced debt service capacity Key Solvency Indicators | Item | Current Period-End/Period | Prior Year-End/Period | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 156.81% | 149.53% | +7.28 p.p. | | Debt-to-Asset Ratio | 67.32% | 68.17% | -0.85 p.p. | | EBITDA Interest Coverage Ratio | 3.01 | 1.87 | 60.96% | [Financial Report](index=58&type=section&id=Section%2010%20Financial%20Report) [Audit Report](index=58&type=section&id=I.%20Audit%20Report) The company's semi-annual financial report for 2019 is unaudited - The company's semi-annual financial report is unaudited[179](index=179&type=chunk) [Financial Statements](index=58&type=section&id=II.%20Financial%20Statements) This section provides the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity for H1 2019 [Consolidated Balance Sheet](index=59&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2019, total assets were ¥35.20 billion, total liabilities were ¥26.00 billion, and equity attributable to the parent was ¥8.73 billion [Consolidated Income Statement](index=63&type=section&id=Consolidated%20Income%20Statement) In H1 2019, the company achieved total operating revenue of ¥1.18 billion and a net profit of ¥251 million, driven by growth in fees, investment income, and fair value gains [Consolidated Cash Flow Statement](index=65&type=section&id=Consolidated%20Cash%20Flow%20Statement) Net cash from operating activities was ¥3.11 billion, a significant increase of 1069.12% YoY, while the period-end cash balance stood at ¥9.44 billion [Significant Accounting Policy and Estimate Changes](index=95&type=section&id=(Thirty-five)%20Significant%20Accounting%20Policy%20and%20Estimate%20Changes) The company adopted the new IFRS 9 financial instruments standard from January 1, 2019, leading to significant reclassifications and retrospective adjustments to opening balances - The company adopted the four new financial instrument standards, including "CAS 22 - Recognition and Measurement of Financial Instruments," effective January 1, 2019[281](index=281&type=chunk) - The company implemented the revised financial statement formats for financial enterprises issued by the Ministry of Finance, adjusting the presentation of financial statement items[282](index=282&type=chunk) Impact of First-time Adoption of New Financial Instrument Standards on Opening Balance Sheet (Consolidated) | Item | Pre-adjustment (2018-12-31) | Post-adjustment (2019-01-01) | Adjustment Amount | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Financial assets at FVTPL | 12,171,287,883.28 | 0.00 | -12,171,287,883.28 | | Available-for-sale financial assets | 2,994,195,518.69 | 0.00 | -2,994,195,518.69 | | Trading financial assets | 0.00 | 15,137,079,459.44 | +15,137,079,459.44 | | Other equity instrument investments | 0.00 | 85,816,000.00 | +85,816,000.00 | | **Liabilities** | | | | | Financial liabilities at FVTPL | 1,018,873,271.63 | 0.00 | -1,018,873,271.63 | | Trading financial liabilities | 0.00 | 1,031,553,337.38 | +1,031,553,337.38 | | **Equity** | | | | | Other comprehensive income | -224,750,628.26 | 401,840.32 | +225,152,468.58 | | Retained earnings | 1,644,390,073.76 | 1,278,940,376.86 | -365,449,696.90 |

Financial Performance - Net profit attributable to shareholders was approximately ¥53.16 million, down 51.52% year-on-year[9]. - Operating revenue for the reporting period was approximately ¥494.36 million, an increase of 0.20% compared to the same period last year[9]. - Basic earnings per share were ¥0.015, a decrease of 51.61% compared to the same period last year[9]. - The company reported a net profit attributable to shareholders of ¥125.35 million for the year-to-date, down 58.06% year-on-year[9]. - The net income from investment banking business fees decreased by 37.41% to ¥154,289,720.90, attributed to a decline in underwriting and sponsorship income[21]. - The basic earnings per share decreased by 57.65% to ¥0.036, primarily due to a decline in net profit attributable to shareholders[21]. - The company reported a loss of approximately CNY 52.32 million in fair value changes for the period[30]. - The company’s investment in stocks resulted in a loss of approximately CNY 58.68 million during the period[30]. Cash Flow and Assets - The net cash flow from operating activities was approximately -¥1.47 billion, indicating a significant cash outflow[9]. - The net cash flow from operating activities was negative at ¥-1,206,627,478.30, compared to ¥16,481,675.49 in the previous year, due to an increase in financial asset holdings and net outflow from leasing business[21]. - Total assets at the end of the reporting period were approximately ¥33.05 billion, a decrease of 0.21% compared to the end of the previous year[9]. - Financial assets measured at fair value increased by 36.35% to ¥11,586,261,957.15, mainly due to an increase in financial asset holdings during the period[20]. - The total fair value of financial assets at the end of the period was approximately CNY 14.54 billion, with a total initial investment cost of about CNY 15.01 billion[30]. Shareholder Information - The total number of shareholders at the end of the reporting period was 239,512[15]. - The top shareholder, Huaxi Xinyu Investment Co., Ltd., held 15.41% of the shares, amounting to 539,718,400 shares[15]. Legal and Compliance - The company is currently involved in multiple legal cases, with a total amount in dispute of approximately ¥4 million[25]. - The company has no overdue commitments from controlling shareholders or related parties during the reporting period[26]. - There were no violations regarding external guarantees during the reporting period[31]. - The company has no non-operating fund occupation by controlling shareholders or related parties[32]. Government Support and Subsidies - The company received government subsidies amounting to approximately ¥11.97 million during the reporting period[13]. Borrowings and Liabilities - Short-term borrowings increased significantly by 241.54% to ¥252,400,000.00, primarily due to an increase in short-term borrowings for financing leasing business[20]. Investment Performance - The investment income increased by 37.22% to ¥460,449,817.60, mainly due to gains from trading financial instruments[21]. - The investment in bonds showed a fair value increase of approximately CNY 36.13 million[30]. Investor Relations - The company actively engaged with investors, responding to 66 inquiries via its investor relations channels during the reporting period[34]. Future Outlook - The company did not provide an earnings forecast for 2018 due to the strong correlation between its performance and the fluctuations in the securities market[27].