Quantitative Models and Construction Methods 1. Model Name: Black-Litterman (BL) Model - **Model Construction Idea**: The BL model integrates subjective views (e.g., analyst target prices) with market equilibrium returns to optimize portfolio weights. It naturally handles stocks without analyst opinions by redistributing weights among stocks with available views [1][7][23]. - **Model Construction Process**: 1. **Expected Return Calculation**: The expected return vector is calculated as: $$\mu_{p}=[(\tau\Sigma)^{-1}+P^{T}\Omega^{-1}P]^{-1}[(\tau\Sigma)^{-1}\pi+P^{T}\Omega^{-1}Q]$$ - \( \tau \): Weight of subjective views - \( \Sigma \): Covariance matrix of asset returns - \( \pi \): Equilibrium return vector - \( P \): View matrix indicating which assets are involved in each view - \( Q \): View return vector - \( \Omega \): Confidence matrix for views [7][8]. 2. **Covariance Matrix Adjustment**: The adjusted covariance matrix is: $$\Sigma_{p}^{*}=\Sigma+[(\tau\Sigma)^{-1}+P^{T}\Omega^{-1}P]^{-1}$$ [7]. 3. **Portfolio Weight Calculation**: Without constraints: $$w=(\delta\Sigma_{p}^{*})^{-1}\mu_{p}$$ - \( \delta \): Risk aversion coefficient [8]. With constraints, mean-variance optimization is applied [8]. 4. **Subjective Views**: - Views are derived from analyst target prices, forming long-short portfolios within industries. - Example: For Industry 1, buy stock 2 and sell stock 8, with an expected excess return of 5% [12][17]. 5. **Confidence Matrix**: - Confidence is based on the variance of analyst predictions. - Formula: $$\Omega=P Z P^{T}$$ - \( Z \): Diagonal matrix of standardized variances of analyst predictions [18][19]. - **Model Evaluation**: The BL model effectively integrates subjective views and market data, providing optimized portfolio weights superior to simpler weighting methods [25][35]. --- Model Backtesting Results 1. BL Model Performance in CSI 300 Index - **Cumulative Returns (2010-2021/5/31)**: - Full Portfolio: +186.52% - Positive View Portfolio: +215.15% - CSI 300 Index: +49.11% - Excess Returns: +137.41% (Full), +166.05% (Positive) [26][31]. - **Annualized Returns**: - Full Portfolio: Outperformed in most years except 2014, 2016-2017 [30][31]. - **Portfolio Composition**: - Full Portfolio: Average of 265 stocks - Positive View Portfolio: Average of 138 stocks [32][34]. - **Weighting Comparison**: BL weights outperformed market-cap and equal-weighted portfolios [35][38]. 2. BL Model Performance in CSI 500 Index - **Cumulative Returns (2010-2021/5/31)**: - Full Portfolio: +354.89% - Positive View Portfolio: +469.14% - CSI 500 Index: +50.02% - Excess Returns: +304.87% (Full), +419.12% (Positive) [40][45]. - **Annualized Returns**: - Full Portfolio: Outperformed in most years except 2014 [45]. - **Portfolio Composition**: - Full Portfolio: Average of 475 stocks - Positive View Portfolio: Average of 138 stocks [46]. 3. Comparison with Direct Sorting Methods - **Cumulative Returns (2010-2021/5/31)**: - BL Positive View Portfolio: +215.15% - Direct Sorting (Mixed, Market-Cap Weighted): +122.48% - Direct Sorting (Mixed, Equal Weighted): +120.51% - Direct Sorting (Industry, Market-Cap Weighted): +145.30% - Direct Sorting (Industry, Equal Weighted): +154.87% [47][48]. 4. Sensitivity to \( \tau \) - **Impact of \( \tau \)**: - Higher \( \tau \) values increase the weight of subjective views in portfolio construction. - In CSI 300, higher \( \tau \) values led to slightly higher returns, with stable parameter sensitivity [54][61]. - In CSI 500, \( \tau \) changes caused greater return volatility [58][59].

Financial Performance - Total operating revenue for Q1 2021 was ¥955,891,725.39, an increase of 4.43% compared to ¥915,374,700.00 in the same period last year[5] - Net profit attributable to shareholders was ¥320,945,213.31, a decrease of 14.42% from ¥375,035,098.14 year-on-year[5] - Net profit excluding non-recurring gains and losses was ¥319,346,368.28, down 9.26% from ¥351,947,464.73 in the previous year[5] - Basic earnings per share decreased by 14.29% to ¥0.12 from ¥0.14 year-on-year[5] - Net profit for Q1 2021 was CNY 340,633,647.07, a decrease of 9.2% from CNY 375,033,300.89 in the same quarter last year[39] - Basic earnings per share decreased to $0.11 from $0.14, reflecting a decline of 21.4% year-over-year[43] Cash Flow - The net cash flow from operating activities was ¥4,993,300,197.42, compared to a negative cash flow of -¥92,813,595.02 in the same period last year[5] - The net cash flow from operating activities for Q1 2021 was ¥4,668,441,905.04, a significant improvement compared to a negative cash flow of ¥403,843,816.65 in the same period last year[47] - The total cash inflow from operating activities was ¥6,176,838,557.73, down 34.4% from ¥9,350,808,822.52 in Q1 2020[47] - The company reported a significant increase in interest, fees, and commissions received, totaling ¥1,148,929,767.58, compared to ¥1,099,114,268.47 in the previous year[47] - The cash inflow from financing activities was ¥3,674,550,000.00, a decrease of 66.1% from ¥10,859,650,000.00 in the previous year[48] Assets and Liabilities - Total assets at the end of the reporting period were ¥77,809,434,392.69, an increase of 0.75% from ¥77,228,644,030.80 at the end of the previous year[5] - The company's total liabilities as of March 31, 2021, were ¥56,153,405,307.60, compared to ¥55,861,535,862.12 as of December 31, 2020, marking an increase of about 0.52%[33] - Total liabilities amounted to ¥55,861,535,862.12, with a slight increase to ¥56,042,988,812.46 due to lease liabilities of ¥181,452,950.30[50] - The total assets increased from ¥74,356,924,392.93 to ¥74,529,699,250.73, showing a growth of ¥172,774,857.80[51] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 114,943[9] - The top ten shareholders held a combined 49.68% of the shares, with the largest shareholder holding 18.13%[9] - Net assets attributable to shareholders increased by 1.57% to ¥21,656,794,922.83 from ¥21,321,684,397.07 at the end of the previous year[5] - Total equity attributable to shareholders increased to ¥21,656,794,922.83 from ¥21,321,684,397.07, representing a growth of approximately 1.57%[34] Investment Activities - Investment income for the period was ¥455,534,045.65, reflecting normal business operations[8] - Investment income rose by 96.73% to ¥455,534,045.65 from ¥231,548,292.95, attributed to increased returns from equity financial investments[16] - The company reported a net cash outflow from investing activities of ¥1,315,118,554.16, a decrease of 1038.28% compared to the previous period, due to increased scale of other debt investments[16] - The total initial investment cost for securities was approximately ¥31.27 billion, with a fair value change loss of ¥434.60 million during the reporting period[24] Other Financial Metrics - Other comprehensive income after tax decreased by 55.79% to ¥14,141,787.13 from ¥31,989,189.01, indicating a reduction in the fair value changes of other debt investments[16] - The company did not engage in any derivative investments during the reporting period[25] - There were no violations regarding external guarantees during the reporting period[30] - The company did not report any non-operating fund occupation by controlling shareholders during the reporting period[30]

Financial Overview - The registered capital of Huaxi Securities is 2.625 billion yuan, and the net capital is 17.631 billion yuan[9]. - The company reported a net asset of RMB 12,829.44 million after deducting the shares held by exiting shareholders, with paid-in capital of RMB 12,822.37 million and a capital reserve of RMB 7.07 million[19]. - The company raised RMB 1,600 million through a capital increase, with a new registered capital of RMB 1,413,113,700.00 and a capital reserve increase of RMB 1,200 million[20]. - The overall change to a joint-stock company resulted in a registered capital of RMB 2,100 million, based on an audited net asset of RMB 6,887,071,931.11, with a capital reserve of RMB 3,776,654,578.96[21]. - The company completed its initial public offering (IPO) on January 12, 2018, raising a total of RMB 4,966.5 million, with a net amount available for use of RMB 4,862.36 million after deducting issuance costs[22]. - The company reported a total revenue of 10 billion in 2020, representing a year-over-year growth of 15%[29]. - The company reported a total operating revenue of CNY 4.68 billion, a year-on-year increase of 18.93%[68]. - The net profit attributable to shareholders reached CNY 1.9 billion, reflecting a year-on-year growth of 32.75%[67]. - The company's total assets increased by 13.86% to ¥77,228,644,030.80 at the end of 2020, up from ¥67,827,402,919.42 in 2019[39]. Dividend Policy - The company plans to distribute a cash dividend of 1.11 yuan (including tax) for every 10 shares based on a total of 2.625 billion shares, with no bonus shares issued[4]. - The cash dividend for 2020 is proposed at RMB 1.11 per 10 shares, totaling RMB 291.375 million, which represents 15.33% of the net profit attributable to ordinary shareholders[164]. - The cash dividend for 2019 was RMB 0.76 per 10 shares, totaling RMB 199.5 million, accounting for 13.94% of the net profit attributable to ordinary shareholders[163]. - The company emphasizes a stable profit distribution policy, prioritizing cash dividends, with a minimum of 20% of distributable profits to be distributed as cash dividends under normal circumstances[158]. - The company has a continuous and stable profit distribution policy that considers long-term sustainable development[158]. - The cash dividend distribution plan is subject to approval at the shareholders' meeting[166]. Business Operations and Strategy - The company operates in the securities industry, which is subject to cyclical changes in the Chinese securities market[2]. - The company has not experienced any changes in its main business since its listing, which includes securities brokerage, investment consulting, and asset management[13]. - The company has established multiple branches across various regions, including Shenzhen, Shanghai, and Fuzhou, to enhance its market presence and operational efficiency[23]. - The company opened a new internet securities branch in Chengdu on July 10, 2020, as part of its strategy to expand into the digital finance sector[24]. - The company is focused on expanding its market presence through the establishment of new securities business departments in various provinces[27][28]. - The company is actively involved in the development of new products and technologies to enhance its service offerings[25]. - The company is exploring strategic partnerships and potential acquisitions to strengthen its market position[25]. Risk Management - The company faces various risks, including policy, operational, market, credit, liquidity, and operational risks, especially with the implementation of the new Securities Law[4]. - The company emphasizes the importance of professional capability and quality in the capital market due to increased legal responsibilities and risks for securities firms[4]. - The company has established a comprehensive risk management and internal control framework to mitigate operational risks, including a real-time monitoring system and compliance training for employees[146]. - The company conducts annual liquidity stress tests to assess its ability to withstand liquidity risks under various scenarios[145]. - The company has implemented a dynamic risk control indicator monitoring system, ensuring that key risk indicators such as net capital and liquidity remain within regulatory standards[150]. Compliance and Governance - The board of directors has confirmed the accuracy and completeness of the annual report, ensuring no false statements or omissions[3]. - The company has a strong governance structure, with all directors present at the board meeting to review the report[3]. - The company has maintained an A-class rating for three consecutive years from 2018 to 2020[38]. - The company has established a chief risk officer position and a dedicated risk management department to enhance its risk management capabilities[154]. - The company has focused on anti-money laundering efforts, achieving an A-level rating in anti-money laundering classification for several branches[155]. Market Performance - User data showed an increase in active users to 50 million, up from 40 million in the previous year, marking a 25% growth[30]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[39]. - The company achieved a market share of 1.39% in the securities trading business, ranking 19th in the industry[83]. - The company ranked 18th in equity underwriting amount in 2020, with notable awards for its performance in the sector[54]. Financial Investments and Assets - Cash and cash equivalents amounted to 17.677 billion yuan, accounting for 22.89% of total assets, with an increase of 2.337 billion yuan, a growth of 15.24% compared to the beginning of the year[55]. - Financial investments reached 31.239 billion yuan, representing 40.45% of total assets, with an increase of 5.043 billion yuan, a growth of 19.25% compared to the beginning of the year[55]. - The company's total liabilities included a significant increase in bonds payable, which rose to ¥12,673,014,125.55, representing 16.41% of total liabilities, an increase of 4.62 percentage points[102]. - The total amount of financial liabilities related to securities trading increased to ¥20,661,467,059.16, accounting for 26.75% of total liabilities, up by 1.62 percentage points[102]. Shareholder Commitments - The company has committed to maintaining a stable development post-listing and ensuring sufficient net capital to support business transformation[166]. - The company has confirmed that its shareholders will not engage in any form of competition with the issuer's business for the duration of their control[170]. - The company has committed to reducing and regulating related party transactions, ensuring fair market pricing and compliance with relevant regulations[171]. - The company has confirmed that it will not utilize its controlling position to harm the interests of the issuer or its shareholders[170].

Financial Performance - Total operating revenue for the first half of 2020 was ¥2,093,322,666.77, an increase of 4.42% compared to ¥2,004,723,301.51 in the same period last year[17]. - Net profit attributable to shareholders was ¥922,647,413.14, representing an 8.17% increase from ¥852,936,282.78 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was ¥865,044,702.75, up 1.88% from ¥849,085,942.07 in the previous year[17]. - The total operating profit for the current period was ¥1,160,771,015.32, a 4.80% increase from ¥1,107,579,241.42 in the same period last year[55]. - The company reported a notable increase in operating revenue from the Fujian region, which surged by 175.97% to ¥3,860,510.08 from ¥1,398,891.12 last year[54]. Assets and Liabilities - The total assets at the end of the reporting period reached ¥81,227,819,229.99, a 19.76% increase from ¥67,827,402,919.42 at the end of the previous year[17]. - Total liabilities increased by 26.31% to ¥60,799,393,459.12 from ¥48,133,791,062.46 year-on-year[17]. - Cash and cash equivalents increased to ¥19,062,368,103.41, representing 23.47% of total assets, up 0.85 percentage points from the previous year[57]. - Trading financial assets rose significantly to ¥27,722,971,806.95, accounting for 34.13% of total assets, an increase of 9.45 percentage points year-over-year due to increased bond investments for trading purposes[57]. - The company's total liabilities included bonds payable of ¥11,899,421,995.22, which increased by 2.86 percentage points to 14.65% of total liabilities[58]. Cash Flow - The net cash flow from operating activities was negative at -¥739,111,793.15, a significant decrease from ¥3,266,198,401.41 in the previous year, reflecting a decline of 122.63%[17]. - The net cash flow from investment activities was CNY 1.29 billion, a significant improvement from a negative CNY 5.13 billion in the previous year[40]. - The net increase in cash and cash equivalents was CNY 4.03 billion, down 16.93% year-on-year[40]. Revenue Sources - The net interest income accounted for 24.90% of total revenue, down from 27.53% in the previous year[41]. - The net fee and commission income increased by 27.55% year-on-year, making up 47.88% of total revenue[41]. - Investment income rose by 24.66% year-on-year, contributing 25.38% to total revenue[41]. - Brokerage and wealth management business revenue increased by 25.32% year-on-year to CNY 902.57 million, with a profit margin of 53.16%, up 5.77 percentage points[42]. Risk Management - The company highlights potential risks related to market fluctuations, policy changes, and operational challenges in the securities industry[2]. - The company has established a risk management model focusing on Value at Risk (VaR), sensitivity indicators, and stress testing to manage market risks, with a 95% confidence interval for VaR calculations[85]. - The company has implemented a comprehensive risk prevention and monitoring mechanism for credit trading businesses, including limits on total business scale and single client concentration[86]. Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares for this reporting period[2]. - The company held its annual general meeting on June 29, 2020, with an investor participation rate of 48.42%[92]. - The company has established a reputation risk management system to enhance its reputation management capabilities[91]. Strategic Initiatives - The company is focusing on transforming its business model from traditional services to comprehensive wealth management services to meet growing customer demands[31]. - The company is actively exploring innovative financial products and strategies in the derivatives market to create new profit growth points[47]. - The company plans to continue optimizing its existing business while expanding its strategic customer base through stock pledge services[49]. Compliance and Legal Matters - The company has not experienced any bankruptcy reorganization during the reporting period[95]. - There are no significant litigation or arbitration matters reported during the period[96]. - The company has resolved a lawsuit with Chengdu Dacheng Real Estate Co., Ltd., returning a performance deposit of 8 million RMB[98]. Shareholder Information - The total number of shares outstanding is 2,625,000,000, with 32.26% being restricted shares and 67.74% being unrestricted shares[151]. - The largest shareholder, Luzhou Laojiao Group, holds 18.13% of the shares, amounting to 475,940,143 shares[154]. - As of the report date, the company has 132,659 shareholders, with 10 holding more than 5% of the shares[154].

Financial Performance - Total operating revenue for Q1 2020 was ¥915,374,700, a decrease of 12.26% compared to ¥1,043,336,315 in the same period last year[4]. - Net profit attributable to shareholders was ¥375,035,098, down 20.72% from ¥473,029,807 in the previous year[4]. - Basic earnings per share decreased by 22.22% to ¥0.14 from ¥0.18 in the same period last year[4]. - The company reported a net profit of ¥352,861,185.94 for the reporting period, compared to a loss of ¥76,159,170.78 in the previous period[35]. - Total comprehensive income for Q1 2020 was ¥407,022,489.90, a decline of 22.6% from ¥526,358,640.46 in the previous year[45]. - Net profit for Q1 2020 was ¥355,020,528.77, down 20% from ¥443,220,334.92 in the same period last year[47]. Cash Flow - Net cash flow from operating activities was -¥92,813,595, a decline of 102.12% compared to ¥4,380,352,622 in Q1 2019[4]. - The net cash flow from operating activities was negative at -¥92,813,595.02, primarily due to large purchases of trading financial assets[23]. - The company reported a net cash outflow from operating activities of ¥92,813,595.02, contrasting with a net inflow of ¥4,380,352,622.63 in Q1 2019[50]. - The cash outflow from operating activities totaled ¥9,891,485,398.07, compared to ¥7,948,014,978.30 in Q1 2019, indicating an increase of 24.4%[50]. - The total cash inflow from operating activities was 9,300,808,822.52, down from 12,153,319,187.64 in the previous period[52]. - The cash flow from financing activities netted 5,715,057,618.21, slightly up from 5,221,475,690.53 in the previous period[53]. Assets and Liabilities - Total assets at the end of the reporting period were ¥82,288,146,798, an increase of 21.32% from ¥67,827,402,919 at the end of the previous year[4]. - The total liabilities increased to ¥62,187,512,451.14 from ¥48,133,791,062.46, representing a rise of approximately 29.2%[38]. - The company's cash and cash equivalents reached ¥19,880,267,685.44, up from ¥15,339,174,979.51, indicating a growth of about 29.5%[37]. - The total assets as of March 31, 2020, amounted to ¥82,288,146,798.00, an increase from ¥67,827,402,919.42 as of December 31, 2019, reflecting a growth of approximately 21.5%[37]. - The company's total liabilities for the company were reported at ¥46,216,730,235.34, with total equity at ¥19,369,138,973.68[60]. Investments - Investment income for the period was ¥231,548,292.95, reflecting normal investment business operations[6]. - Fair value changes resulted in a loss of ¥108,918,241.85, attributed to normal investment activities[6]. - Financial investments rose by 32.08% to ¥34,600,332,266.14 as the company expanded its investment business[22]. - The company's derivative financial assets surged by 499.55% to ¥12,542,944.23 due to increased options investments by subsidiaries[22]. - The company’s financial investments totaled CNY 34,289,700,812.60, up from CNY 26,077,363,316.55 at the end of 2019[40]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 139,837[7]. - Net assets attributable to shareholders increased by 2.07% to ¥20,056,410,959.95 from ¥19,649,386,672.80 at the end of the previous year[4]. - The company's equity attributable to shareholders rose to CNY 19,756,148,691.46, compared to CNY 19,369,138,973.68 at the end of 2019[42]. Other Income and Subsidies - The company received government subsidies amounting to ¥6,468,378.75 during the reporting period[5]. - The company reported a significant increase of 1636.92% in other income to ¥5,261,035.78, mainly from government subsidies[23]. - The company's other comprehensive income increased to CNY 81,684,019.18, compared to CNY 49,694,830.17 in the previous year[42].

Financial Performance - The company reported a total revenue of 10 billion in 2019, representing a year-over-year growth of 15%[29]. - User data showed an increase in active users to 50 million, up from 40 million in the previous year, marking a 25% growth[30]. - The company provided guidance for 2020, expecting revenue to grow by 12% to reach approximately 11.2 billion[29]. - The company reported a total operating revenue for 2019 reached CNY 3.94 billion, a significant increase from CNY 2.55 billion in 2018, representing a year-on-year growth of 54.70%[69]. - Net profit attributable to shareholders for 2019 was CNY 1.43 billion, up 69.39% compared to the previous year[68]. - The company achieved operating revenue of CNY 3,937.42 million in 2019, representing a year-on-year growth of 54.70%[75]. - The investment banking business revenue increased to CNY 520.49 million, up 6.65 percentage points from 2018, contributing 13.22% to total revenue[69]. - The asset management business revenue decreased to CNY 141.67 million, accounting for 3.60% of total revenue, down 3.32 percentage points from the previous year[69]. - The company’s total assets as of the end of 2019 were CNY 67.83 billion, a 44.99% increase from the beginning of the year[68]. - The company reported a net profit attributable to shareholders of 143.15 million yuan for the year 2019[165]. Capital Structure and Shareholder Information - The company reported a registered capital of 2.625 billion yuan and a net capital of 16.568 billion yuan[8]. - The profit distribution plan approved by the board is to distribute a cash dividend of 0.76 yuan per 10 shares (including tax) based on a total of 2.625 billion shares, with no bonus shares issued[2]. - The company plans to distribute a cash dividend of CNY 199,500,000 for the fiscal year 2019, which represents 13.94% of the net profit attributable to ordinary shareholders[164]. - The total distributable profit for the year 2019 was 553.17 million yuan, with the cash dividend accounting for 100% of the profit distribution[165]. - The company has committed to maintaining a strong net capital to support business transformation and meet funding needs[166]. - The company has not issued any new shares or conducted any share buybacks during the reporting period[165]. - The company has adhered to its commitments regarding shareholding restrictions and has not transferred or delegated its shares during the lock-up period[167]. Business Operations and Strategy - The company operates in the securities industry, facing potential risks including market fluctuations, policy risks, operational risks, and liquidity risks[2]. - The company has not experienced any changes in its main business operations since its listing, which includes securities brokerage, investment consulting, and asset management[12]. - The company aims to enhance its market share through strategic acquisitions and partnerships in the financial services industry[16]. - Future outlook includes expanding its service offerings and increasing its presence in the interbank market and bond market[15][16]. - The company has established multiple branches across China, including Shenzhen, Shanghai, and Fuzhou, enhancing its market presence[22][23]. - The company has expanded its market presence by becoming a member of several major exchanges, including the Shanghai Futures Exchange and the Dalian Commodity Exchange[16]. - The company has established a robust network of securities business departments to support its growth objectives[26]. - The company is actively managing its regional presence, with a significant number of departments in economically vibrant areas[26]. Risk Management - The company emphasizes the importance of risk factors in its future operations, particularly in relation to the cyclical nature of the securities market[2]. - The company has established a risk management model focusing on market risk, credit risk, and liquidity risk, with specific metrics and limits in place[144]. - The company has implemented a comprehensive credit risk management system, including internal credit rating models to enhance risk management precision[145]. - The company maintained core risk control indicators related to net capital and liquidity without any warnings or breaches of regulatory standards in 2019[150]. - The company has strengthened compliance management and risk management training to enhance employee awareness and capabilities[147]. Regulatory Compliance and Governance - The company’s board of directors and management have confirmed the accuracy and completeness of the annual report[2]. - The company received an A-class rating from securities regulatory authorities, indicating effective compliance management and no regulatory penalties during the year[153]. - The company revised over 200 internal regulations to enhance its compliance management framework, ensuring clearer processes and promoting healthy business operations[153]. - The independent directors are required to provide independent opinions on the profit distribution plan[157]. - The company engages with minority shareholders through various channels to gather their opinions on profit distribution[156]. Technological Development - The company has a strong focus on technology development to improve its trading platforms and customer service capabilities[16]. - The company invested 200 million in R&D for new technologies, focusing on AI and machine learning advancements[29]. - The company is actively pursuing financial technology integration to enhance retail and investment business capabilities, leveraging technologies like AI and big data[142]. Market Position and Competitive Landscape - The company has enhanced its wealth management services, resulting in a rapid increase in high-net-worth clients and maintaining the largest market share in margin trading among western brokerages[63]. - The company has transformed its brokerage business from a "team + channel" model to a "product + service" model since 2011, focusing on customer accumulation and optimizing product offerings[58]. - The company is focusing on strengthening its issuance pricing capabilities and exploring new profit models to improve service for listed companies[141]. - The company recognizes the intensified competition in the securities industry and is adapting its service offerings to meet the changing market landscape[138]. Future Outlook - The company plans to implement a new marketing strategy aimed at increasing brand awareness by 20% in 2020[29]. - The company plans to focus on value investment and select companies with strong fundamentals and global competitiveness for stable returns in 2020[88]. - The company aims to enhance customer acquisition quality and optimize marketing expenses to improve return on investment[141]. - The company anticipates a shift towards wealth management and active asset management in response to evolving client investment demands and regulatory changes[137].

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 2,004,723,301.51, representing a 47.31% increase compared to CNY 1,360,875,759.35 in the same period last year[12]. - The net profit attributable to shareholders of the listed company reached CNY 852,936,282.78, up 58.91% from CNY 536,731,824.37 year-on-year[12]. - The net profit after deducting non-recurring gains and losses was CNY 849,085,942.07, an increase of 59.64% compared to CNY 531,878,936.17 in the previous year[12]. - The basic earnings per share for the first half of 2019 was CNY 0.32, reflecting a 52.38% increase from CNY 0.21 in the same period last year[12]. - The total operating profit for the first half of 2019 reached ¥1,107,579,241.42, an increase of 58.22% compared to the same period last year[52]. Assets and Liabilities - The total assets as of June 30, 2019, amounted to CNY 64,621,759,372.28, a 38.14% increase from CNY 46,780,894,327.20 at the end of the previous year[12]. - The total liabilities increased by 60.30% to CNY 45,493,257,630.30 from CNY 28,380,760,544.32 at the end of the previous year[12]. - The company's core net capital at the end of the reporting period was CNY 15,578,731,115.43, an increase of 4.06% compared to the previous year[17]. - The liquidity coverage ratio decreased to 264.34%, down 57.94 percentage points from the previous year[20]. - The company's cash and cash equivalents amounted to ¥15,359,947,533.31, accounting for 23.77% of total assets, a decrease of 0.49 percentage points from last year[55]. Business Segments - The company continues to focus on wealth management, investment banking, and asset management as its three main business pillars[21]. - Brokerage and wealth management business generated revenue of ¥720,221,115.07, accounting for 35.93% of total revenue, with a year-on-year increase of 26.65%[36]. - Investment business revenue surged to ¥731,893,043.68, making up 36.51% of total revenue, reflecting a remarkable growth of 101.04% compared to the previous year[36]. - Investment banking business revenue increased to ¥180,757,676.18, accounting for 9.02% of total revenue, with a substantial growth of 244.87% year-on-year[36]. - The company has maintained a continuous profit streak in its fixed income business for 13 years, significantly outperforming market averages and bond funds[28]. Strategic Plans and Future Outlook - The company plans to implement a new five-year strategic plan (2019-2023) focusing on "large wealth, large investment banking, and large investment" as core business pillars[32]. - The company plans to enhance its marketing efforts in stock pledge business to expand client resources and control risks effectively[42]. - The company is actively preparing for future projects in the Sci-Tech Innovation Board, aiming to strengthen its industry research and internal control[46]. - The company plans to establish a wholly-owned subsidiary for asset management with an investment of up to RMB 300 million, currently pending regulatory approval[158]. - The company has developed a five-year strategic plan (2019-2023) to enhance its comprehensive strength and industry ranking[153]. Risk Management - The company faces risks related to market fluctuations, policy changes, and operational compliance, which may impact future performance[2]. - The company has implemented a risk management model focusing on Value at Risk (VaR) and sensitivity indicators to address market risks, ensuring compliance with internal limits[89]. - The company has established a comprehensive credit risk management framework, including internal credit rating systems to enhance risk assessment capabilities[90]. - The liquidity coverage ratio and net stable funding ratio were both compliant with company limits and regulatory requirements as of June 30, 2019[92]. - The company is currently implementing a strict compliance culture to enhance risk management and compliance awareness among employees[94]. Corporate Governance and Compliance - The company has engaged a well-known international consulting firm to assist in building its operational risk management system[93]. - The company is enhancing its compliance management system to align with regulatory requirements and promote business development[94]. - The company has established a long-term commitment to ensure the accuracy and completeness of its financial disclosures[102]. - The company is actively enhancing information disclosure and investor education to comply with regulatory requirements[104]. - The company has committed to measures to mitigate the dilution of immediate returns from its recent public offering[104]. Shareholder Commitments and Transactions - The company has made commitments regarding share transfer restrictions, ensuring no transfers during the holding period[98]. - The company’s controlling shareholder has committed to urging the underwriter to repurchase shares if the prospectus contains significant inaccuracies[102]. - The company has pledged to repurchase all A-shares if the prospectus contains false statements or significant omissions affecting the issuance conditions[101]. - The company reported a commitment from its controlling shareholder to compensate investors for any losses caused by false statements or omissions in the prospectus[102]. - The company has no stock incentive plans or employee stock ownership plans in place[116]. Community Engagement and Social Responsibility - The company has donated a total of 37.55 million yuan and provided over 200,000 yuan in material donations over the past four years for poverty alleviation efforts[147]. - In the first half of 2019, the company invested 2.67 million yuan in poverty alleviation, including 2 million yuan for infrastructure and agricultural projects in specific villages[147]. - The company has stationed 7 dedicated poverty alleviation staff in five impoverished counties, contributing significantly to local infrastructure and economic development[147]. - The company aims to deepen comprehensive financial services for impoverished regions, facilitating access to various financing channels for local enterprises[149]. - The company has set a goal to contribute to the achievement of a moderately prosperous society through its poverty alleviation initiatives[149].

Financial Performance - The company's operating revenue for Q1 2019 was ¥1,043,336,315.29, representing a 53.59% increase compared to ¥679,298,550.01 in the same period last year[4] - Net profit attributable to shareholders was ¥473,029,807.38, up 64.62% from ¥287,343,120.14 year-on-year[4] - Basic earnings per share increased by 50.00% to ¥0.18 from ¥0.12 in the same quarter last year[4] - The company reported a total comprehensive income of 496,552,461.04 for Q1 2019, compared to 264,631,380.98 in the same quarter last year, representing an increase of about 87.5%[47] - Net profit for Q1 2019 reached 443,220,334.92, compared to 278,225,201.21 in the same period last year, marking a year-over-year increase of about 59.4%[46] Cash Flow - The net cash flow from operating activities reached ¥4,380,352,622.63, a significant recovery from a negative cash flow of -¥1,863,148,265.71 in the previous year[4] - Cash flow from operating activities generated a net inflow of 4,380,352,622.63, a significant improvement from a net outflow of -1,863,148,265.71 in the previous year[50] - The net cash flow from operating activities was ¥4,817,571,718.41, a significant improvement compared to the previous period's net cash flow of -¥1,742,763,734.52[52] - Total cash inflow from operating activities reached ¥10,713,319,187.64, while cash outflow was ¥5,895,747,469.23, resulting in a net cash inflow[52] - The company reported a significant increase in cash inflow from securities trading, amounting to ¥6,695,415,367.74, compared to ¥967,643,444.10 previously[52] Assets and Liabilities - Total assets at the end of the reporting period were ¥61,557,213,322.01, a 31.59% increase from ¥46,780,894,327.20 at the end of the previous year[4] - The company's total liabilities were ¥42,616,800,712.64 as of March 31, 2019, up from ¥28,380,760,544.32 at the end of December 2018, reflecting a rise of approximately 50.2%[34] - The company's total equity amounted to ¥18,940,412,609.37 as of March 31, 2019, compared to ¥18,400,133,782.88 at the end of December 2018, showing a growth of approximately 2.9%[34] - The company's total liabilities to equity ratio as of March 31, 2019, was approximately 2.25, compared to 1.54 at the end of December 2018, indicating increased leverage[34] - The company's total assets reached ¥59,673,856,626.01, up from ¥45,088,200,872.86, an increase of 32.36%[38] Investment Activities - Investment income for the period was ¥237,723,877.29, attributed to normal investment activities[9] - Fair value gains amounted to ¥239,310,479.08, also resulting from normal investment operations[6] - The fair value gains from financial assets amounted to CNY 239.31 million, reflecting a 293.38% increase due to market fluctuations[23] - The company reported a net investment income of ¥237,723,877.29, slightly down from ¥238,148,071.85, a decrease of 0.18%[40] - Investment activities resulted in a net cash outflow of -1,065,307,961.74, compared to -647,016,415.26 in the previous year, indicating increased investment activity[50] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 179,812[10] - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[20] - The company reported no non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[30] Other Comprehensive Income - The company's other comprehensive income rose by 808.57% to CNY 55.51 million, driven by changes in the fair value of fixed-income investments[23] - Other comprehensive income after tax amounted to ¥53,332,126.12, compared to a loss of ¥17,290,040.08 in the previous year[42] - The company's other comprehensive income increased to ¥55,508,806.92 as of March 31, 2019, from ¥6,109,436.11 at the end of December 2018, reflecting a significant rise of about 810%[34]