PACIFIC SECURITIES(SH:601099)2022-08-29 16:00Financial Performance - The company's operating revenue for the first half of the year reached ¥739,873,739.76, representing a 10.12% increase compared to ¥671,859,021.48 in the same period last year[18]. - The net profit attributable to shareholders of the parent company was a loss of ¥77,990,939.06, a significant decline from a profit of ¥137,585,417.88 in the previous year[18]. - The net cash flow from operating activities was negative at ¥304,019,183.59, compared to a positive cash flow of ¥2,870,069,019.76 in the same period last year[18]. - Total assets decreased by 13.47% to ¥17,321,859,098.12 from ¥20,018,538,221.01 at the end of the previous year[18]. - Total liabilities decreased by 25.40% to ¥7,659,238,162.41 from ¥10,267,004,183.98 at the end of the previous year[18]. - The basic earnings per share for the first half of the year was -¥0.011, down from ¥0.020 in the same period last year[19]. - The weighted average return on equity was -0.81%, a decline from 1.42% in the previous year[19]. - The liquidity coverage ratio improved to 556.03% from 413.63% at the end of the previous year, indicating better liquidity management[20]. - The net interest income increased by 70.81% to ¥112,082,600.79 compared to ¥65,619,469.61 in the same period last year[24]. - The company reported a significant increase in other income, which rose by 542.94% to ¥619,350.23 from ¥96,330.28 in the previous year[24]. Risk Management - The company faces significant risks related to the domestic macroeconomic environment and capital market fluctuations, which could adversely affect its operational performance[6]. - The company has detailed its risk factors, including credit risk, market risk, liquidity risk, operational risk, compliance risk, and reputational risk[6]. - The company has established a comprehensive risk management system in accordance with regulatory requirements, involving the board, management, and all employees in risk identification and management[85]. - The board of directors is responsible for overall risk management, including approving risk management policies and assessing risk tolerance levels[85]. - The company has implemented measures to manage credit and market risks, including setting risk indicators and establishing stop-loss mechanisms[88]. - A liquidity risk management framework has been developed, focusing on asset-liability matching and dynamic monitoring of liquidity risk control indicators[89]. - The company has a robust internal control policy to manage operational risks, ensuring independent monitoring and regular assessments of key operational processes[90]. - Compliance risk management is conducted through a dedicated compliance management system, which includes compliance reviews and training[90]. - The company actively tracks macroeconomic conditions and industry practices to adapt its risk response strategies accordingly[90]. - The risk management department is tasked with monitoring and reporting the overall risk level of the company[88]. Corporate Governance - The company has not proposed any profit distribution or capital reserve transfer plans for the half-year period[91]. - The company has not reported any changes in its board or management personnel during the reporting period[91]. - The company has not disclosed any new employee incentive plans or stock ownership plans during the reporting period[91]. - The total number of ordinary shareholders as of the end of the reporting period is 320,497[114]. - The company’s share capital structure has not changed during the reporting period[114]. - The company is awaiting the approval of regulatory authorities for the transfer of shares related to a judicial auction[112]. - Beijing Jiayu Investment Co., Ltd. holds 744,039,975 shares, accounting for 10.92% of total shares, with 580,810,000 shares pledged and 744,039,975 shares frozen[116]. - Dalian Tiansheng Shobo Technology Co., Ltd. holds 292,500,000 shares, representing 4.29% of total shares, with 113,500,000 shares frozen[116]. Community Engagement and Sustainability - The company has implemented measures to reduce carbon emissions and is actively researching the ESG evaluation system to enhance its role as a financial intermediary[94]. - The company has selected 1,086 individuals from 377 households in the targeted poverty alleviation village for detailed assessment, with a focus on identifying and addressing poverty risks[98]. - The company has developed a monitoring and assistance plan to prevent poverty, ensuring no large-scale return to poverty occurs in the targeted area[98]. - The company continues to support rural revitalization efforts, focusing on improving living conditions and promoting sustainable development in the targeted village[96]. - The company has maintained a presence in the targeted village for 158 days, conducting regular assessments and community engagement[97]. - The company planted over 220 ginkgo trees as part of a community beautification initiative, promoting active participation in rural environmental improvement[100]. - A "Red and Black List" evaluation scheme was established to incentivize community involvement in environmental sanitation, focusing on five key areas including waste management and village appearance[101]. - The company is committed to providing material rewards for households ranked on the "Red List" in quarterly evaluations, aiming to boost participation in rural revitalization efforts[101]. Legal Matters - There are ongoing significant litigation matters involving financial loan contract disputes and bond trading disputes, with updates provided in previous announcements[104]. - The company is involved in multiple ongoing lawsuits, with amounts involved including CNY 30,255.29 million and CNY 28,327.77 million for two separate cases related to stock pledge defaults[107]. - The arbitration case against a company for a default involving CNY 2,309.70 million is currently under review, initiated in June 2022[107]. - A lawsuit concerning a default involving CNY 6,100.00 million is also in progress, with the court's decision still pending[107]. - The company has reported a total of CNY 1,474.12 million involved in a trust dispute, which is currently being adjudicated[107]. - As of the report date, the company has completed the execution of an arbitration case against Xianfeng Holdings Group Co., Ltd.[108]. - The company has not faced any penalties or public reprimands during the reporting period[109]. - There have been no significant related party transactions reported during the period[110]. Financial Position - The registered capital of Pacific Securities is CNY 6,816,316,370.00, remaining unchanged from the previous year[12]. - The net capital at the end of the reporting period is CNY 7,574,658,222.28, a decrease of 0.77% from CNY 7,633,843,873.91 at the end of the previous year[12]. - The total assets of the company decreased by 13.47% to CNY 17,321.86 million compared to the end of the previous year[37]. - The equity attributable to shareholders decreased by 0.91% to CNY 9,622.99 million compared to the end of the previous year[37]. - The company’s total liabilities decreased by 7.33% compared to the previous year, with cash and cash equivalents at RMB 57.43 billion, accounting for 33.16% of total assets[59]. - The company’s total liabilities and owner's equity amounted to ¥17,426,348,161.78, down from ¥20,113,020,361.45, reflecting a decrease of about 13.4% year-over-year[128]. - The company’s total equity decreased to ¥9,662,620,935.71 from ¥9,751,534,037.03, a decline of about 0.9% year-over-year[125]. - The total capital stock remained unchanged at CNY 6,816,316,370.00 throughout the reporting period[146]. - The company’s risk reserve was CNY 710,851,244.12 at the end of the first half of 2022, reflecting stability in risk management[148]. Business Operations - The company has a comprehensive range of business qualifications, including securities brokerage, investment consulting, and asset management[12]. - The company has established 100 branches nationwide, covering all provinces except Hong Kong, Macau, and Taiwan[35]. - The company has made progress in investment banking, successfully completing the issuance and listing application for three companies on the Beijing Stock Exchange[37]. - The company’s financing and securities business scale decreased, with a notable decline in stock pledge repurchase business[28]. - The company maintained a stable performance in its securities brokerage business, with revenue and profit indicators remaining stable[27]. - The company plans to enhance its wealth management services and diversify its product offerings to meet various asset allocation needs of investors[44]. - The asset management business saw remarkable growth of 112.08%, with net income reaching 6,219.66 million RMB compared to 2,932.76 million RMB in the previous year[41]. - The investment banking business's net income dropped significantly by 55.11%, falling to 3,914.57 million RMB from 8,719.56 million RMB year-on-year[41]. - The company's credit business reported a revenue of 6,511.93 million RMB, a decrease of 9.00% from the previous year, with a substantial operating loss of 25,628.08 million RMB[45]. - The securities investment business generated an operating revenue of 30,448.78 million RMB, an increase of 57.46% year-on-year, despite facing investment losses in equity markets[48].