2023-08-29 16:00Financial Performance - The company reported no profit distribution or capital reserve transfer to increase share capital for the first half of 2023[4]. - The company's operating revenue for the first half of the year was CNY 31,499,960,023.94, a decrease of 9.70% compared to the same period last year[22]. - The net profit attributable to shareholders of the parent company was CNY 11,305,770,956.89, reflecting a slight increase of 0.98% year-over-year[22]. - The net cash flow from operating activities was CNY 10,608,760,007.57, down 89.73% from the previous year[22]. - Total assets at the end of the reporting period reached CNY 1,425,938,979,597.33, an increase of 8.97% compared to the end of the previous year[22]. - The total liabilities increased by 10.75% to CNY 1,163,082,167,612.37 compared to the end of the previous year[22]. - The basic earnings per share for the first half of the year was CNY 0.75, a decrease of 1.32% from the same period last year[23]. - The weighted average return on equity decreased by 0.37 percentage points to 4.27% compared to the previous year[23]. - The company's total revenue for the first half of 2023 was RMB 31.50 billion, representing a year-on-year decline of 9.70%[76]. - The total operating income for the company was RMB 31.50 billion, a decrease of 9.70% year-on-year, while operating expenses decreased by 16.64%[77]. Risk Management - The company faces major risks including credit risk, market risk, and compliance risk, which are currently the primary risks encountered[4]. - A comprehensive risk management system has been established to ensure risks are measurable, controllable, and bearable[5]. - The company emphasizes the importance of timely adjustments to strategic planning in response to profound changes in domestic and international capital markets[4]. - The report includes a forward-looking statement risk disclaimer, indicating that future plans and strategies do not constitute a substantive commitment to investors[4]. - The company has implemented a comprehensive risk management mechanism to monitor and manage financial, operational, compliance, and legal risks[94]. - The company is focusing on enhancing its compliance and risk control through increased research and investment in information technology[94]. - The company aims to ensure that risk management effectively covers both domestic and international operations[94]. - The risk management framework consists of a three-tier system involving the board of directors, management, and internal control departments[95]. - The board's risk management committee supervises overall risk management and ensures effective risk management plans are in place[96]. - The management is responsible for establishing risk management policies and evaluating the overall risk status regularly[97]. Business Operations - CITIC Securities has expanded its business scope to include a wide range of financial services, such as securities investment consulting and financing[14]. - The company has been approved for various business qualifications, including asset management and securities brokerage, enhancing its operational capabilities[15]. - The company is actively involved in the management of national social security funds and enterprise annuities, indicating its role in institutional investment management[16]. - CITIC Securities has a strong presence in both domestic and international markets, with qualifications for cross-border business operations[15]. - The company serves more than 2,000 of the largest global institutional investors and has a presence in 13 countries, covering over 95% of the global stock market capitalization[33]. - The company has established a comprehensive customer service hotline for brokerage and asset management services, indicating its commitment to client support[18]. - The company has maintained a leading position in various business segments, including investment banking and wealth management, with significant market reputation and brand advantages[31]. - The company has over 13.5 million retail customers and approximately 100,000 corporate and institutional clients, with a network of over 400 branches in China[32]. Market Performance - In the first half of 2023, the company completed 66 A-share underwriting projects with a total underwriting scale of RMB 158.84 billion, maintaining a market share of 23.97%[38]. - The company ranked first in the A-share IPO market with a total underwriting scale of RMB 33.09 billion from 22 projects, representing a market share of 15.78%[39]. - The total bond underwriting scale in the first half of 2023 was RMB 853.21 billion, with a year-on-year growth of 1.81%, capturing 6.34% of the total market[42]. - The company completed 20 overseas equity projects in the first half of 2023, with a total underwriting scale of USD 111.3 million[38]. - The company aims to strengthen its presence in the Hong Kong market and expand its international client base, particularly in Southeast Asia[40]. Corporate Governance - The report was approved by the board of directors with all members present, and no objections were raised[4]. - The company has established a sound corporate governance structure, with independent decision-making processes in place[128]. - The company has committed to maintaining the independence of its operations and financial management, ensuring no illegal interference from its controlling shareholder[124]. - The company will continue to ensure fair pricing in related transactions with its controlling shareholder and its affiliates[125]. - The company has set up independent bank accounts, ensuring no shared accounts with Citic Limited or its controlled enterprises[128]. Social Responsibility - The company invested RMB 15.18 million in building a dormitory for a school in Gansu Province, completing renovations in the first half of 2023[119]. - The company donated RMB 23 million, RMB 12 million, and RMB 3 million to support poverty alleviation in Tibet, Yunnan, and Chongqing respectively in the first half of 2023[119]. - The company aims to expand its "insurance + futures" and "order purchase + futures" projects to other targeted poverty alleviation counties[122]. - The company plans to enhance its rural revitalization efforts in the second half of 2023, focusing on financial investment, equity and debt financing, and financial training[122]. Employee and Talent Management - As of June 30, 2023, the total number of employees in the group is 26,865, with 16,322 in the parent company[110]. - The company has implemented a talent strategy to cultivate competitive young professionals and enhance its international talent pool[34]. Financial Stability - The liquidity coverage ratio improved to 134.61% from 130.53% in the previous year[24]. - The company has maintained a stable liquidity status, with a focus on managing liquidity risk through a liquidity reserve pool and daily monitoring of asset-liability situations[104]. - The company reported a significant increase in the exposure to AAA-rated bonds, which reached RMB 11,987.106 million as of June 30, 2023, compared to RMB 11,709.623 million at the end of 2022[102]. - The company’s cash flow management plan was strictly executed, ensuring compliance with debt obligations[173]. Related Party Transactions - The company has agreed to waive its preemptive rights for a 10% stake in Huaxia Fund Management Co., with a transfer price not less than USD 490 million, as approved on June 28, 2022[142]. - The company reported a related party income of RMB 1,000 thousand, with a minimal effect on overall revenue[141]. - The company has recorded a related party transaction expense of RMB 500 thousand, with a negligible impact on profits[140]. Bond Issuance - The company has issued a total of 25 billion RMB in bonds with an interest rate of 5.10% maturing on June 25, 2025[162]. - The company has consistently issued bonds with varying maturities and interest rates to optimize its capital structure and meet investor demand[165]. - The company issued short-term corporate bonds totaling 40 million RMB with a 2.12% interest rate, maturing on February 21, 2024[171].