CGS(601881)2024-08-29 12:16Financial Performance - The company's operating revenue for the first half of the year (January to June) was ¥17,085,855,660.44, a decrease of 1.88% compared to the same period last year (¥17,413,581,025.97) [25]. - The net profit attributable to shareholders of the parent company was ¥4,387,819,709.63, down 11.16% from ¥4,939,221,804.89 in the previous year [25]. - The net cash flow from operating activities reached ¥73,093,656,595.66, a significant increase of 4,053.57% compared to ¥1,759,780,198.40 in the same period last year [25]. - Total assets at the end of the reporting period amounted to ¥766,309,104,139.09, reflecting a growth of 15.55% from ¥663,205,297,156.44 at the end of the previous year [25]. - The basic earnings per share for the first half of the year was ¥0.35, a decrease of 22.22% compared to ¥0.45 in the same period last year [26]. - The weighted average return on equity decreased to 3.63%, down 1.47 percentage points from 5.10% in the previous year [26]. - The company's total assets reached RMB 766.309 billion, with equity attributable to shareholders amounting to RMB 133.932 billion [40]. - The group achieved operating revenue of RMB 17.086 billion, a year-on-year decrease of 1.88%, and net profit attributable to shareholders was RMB 4.388 billion, down 11.16% year-on-year [40]. Capital Structure and Shareholder Information - The registered capital of China Galaxy Securities increased to RMB 10,934,402,256 as of June 30, 2024, following the conversion of A-share convertible bonds [15]. - The company has not reported any significant changes in its share capital or shareholder structure during the reporting period [8]. - The total number of ordinary shareholders as of the end of the reporting period is 131,306, including 130,664 A-share shareholders and 642 H-share shareholders [171]. - The top ten shareholders hold a total of 5,186,538,364 shares, representing 47.43% of the total shares [172]. - The company confirmed that there are no strategic investors or general legal entities that have become top ten shareholders due to new share placements [176]. Risk Management - The company has established a comprehensive risk prevention system to manage various risks, including legal, compliance, market, credit, and operational risks [6]. - The company emphasizes the importance of monitoring and continuously evaluating business processes to mitigate operational risks [6]. - The overall risk management system has been enhanced, with a focus on market, credit, liquidity, and operational risks, ensuring that risks remain controllable [82][83]. - The company has implemented a unified credit management system to mitigate credit risk and enhance monitoring of client creditworthiness [88]. - The company has established a comprehensive liquidity risk indicator system, ensuring that liquidity risks are monitored and managed effectively [89]. Corporate Governance - The company’s governance structure ensures that all shareholders enjoy equal status and fully exercise their rights during shareholder meetings [107]. - The company strictly adhered to the Corporate Governance Code and met most of the best practice recommendations [161]. - The company has a well-structured governance framework ensuring compliance with laws and regulations [161]. - The company revised its articles of association to enhance corporate governance and comply with updated regulations, which was approved at the annual general meeting on June 28, 2024 [115]. Environmental and Social Responsibility - The company has committed to controlling greenhouse gas emissions and energy consumption at low levels, implementing measures such as installing sensor faucets and optimizing air conditioning settings [122]. - The company has achieved 100% recycling of office equipment consumables, significantly reducing environmental pollution [122]. - The company allocated approximately RMB 6.737 million for poverty alleviation and rural revitalization efforts, including RMB 6 million specifically for projects in Gansu Province [123]. - The company actively participates in ESG research projects to enhance corporate social responsibility and attract responsible investments [121]. Dividend and Financial Planning - The company plans to distribute a mid-year cash dividend of RMB 918,489,789.50 (including tax), which translates to RMB 0.84 per share based on a total share capital of 10,934,402,256 shares as of June 30, 2024 [4]. - The company has maintained its registered capital of RMB 10,137,258,757 since the previous year, indicating stability in its capital structure [15]. - The company aims to enhance its risk management capabilities and maintain compliance to ensure sustainable development amidst a complex economic landscape [38]. Regulatory Compliance - The company received a warning letter from the Beijing Securities Regulatory Bureau on January 11, 2024, due to issues in private fund product-related business [151]. - The company was fined RMB 1.59 million by the People's Bank of China on February 4, 2024, for failing to fulfill customer identity verification obligations [152]. - The company is committed to comprehensive rectification and enhancing internal control mechanisms following regulatory feedback [157]. Business Operations and Market Position - The company holds various business qualifications, including open-ended securities investment fund distribution and margin trading qualifications, enhancing its operational capabilities [17][18]. - The company is focusing on expanding its international business, particularly in Southeast Asia, with a growing presence in markets like Singapore and Malaysia [38]. - The company has established a comprehensive financial service network with 37 branches and 465 securities business offices across 31 provinces, autonomous regions, and municipalities [39].