2020-08-12 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 15,811,889,665, representing a 12.18% increase compared to the same period last year[25]. - The net profit attributable to the parent company's shareholders was CNY 5,453,712,535, an increase of 8.64% year-on-year[25]. - The net cash flow from operating activities decreased significantly by 76.18% to CNY 8,553,264,136 compared to the previous year[25]. - Total assets at the end of the reporting period reached CNY 623,022,245,722, an increase of 11.39% from the end of the previous year[25]. - The total liabilities increased by 16.58% to CNY 481,714,734,697 compared to the previous year[25]. - The basic earnings per share for the first half of 2020 was CNY 0.58, up 7.41% from CNY 0.54 in the same period last year[26]. - The weighted average return on net assets rose to 4.16%, an increase of 0.13 percentage points year-on-year[26]. - The company's net capital at the end of the reporting period was CNY 89,338,264,336, up from CNY 85,971,493,093 at the end of the previous year[27]. - The risk coverage ratio improved to 301.52%, compared to 271.23% in the previous year[27]. - The liquidity coverage ratio increased to 314.52%, up from 258.18% at the end of the previous year[27]. Risk Management - Major risks faced by the company include market risk, credit risk, liquidity risk, operational risk, and reputational risk, with a robust internal control and risk management system in place[5]. - The company has established a dynamic risk control indicator monitoring system to ensure operations are within manageable risk levels[5]. - The company maintains a strong risk management framework, having received an A-class AA regulatory rating from the China Securities Regulatory Commission for 12 consecutive years[35]. - The risk management framework includes a four-tier system involving the board of directors, supervisory board, management, and risk management departments[94]. - The risk management department is responsible for managing market risk, credit risk, operational risk, and liquidity risk, among others[95]. - The company has developed a risk preference system that considers net capital, liquidity, and compliance, with specific risk tolerance indicators established for monitoring and control[98]. - The company has implemented a risk management policy that includes guidelines for different types of risks, such as market, credit, operational, and liquidity risks[97]. - The company actively conducts stress tests to assess potential losses under extreme market conditions, enhancing risk management strategies accordingly[101]. - The company has established a liquidity risk limit system and conducts daily assessments of the liquidity of various financial assets[103]. Corporate Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[5]. - The company has not faced any violations in decision-making procedures regarding external guarantees[5]. - The company has committed to avoiding competition with its controlling shareholder and ensuring compliance with various commitments[113]. - The company appointed KPMG Huazhen as the external auditor for the 2020 fiscal year, replacing Ernst & Young, due to the latter reaching the audit term limit set by the Ministry of Finance[116]. - There were no significant lawsuits or arbitration matters during the reporting period, indicating a stable legal environment for the company[119]. - The company faced regulatory actions, including a warning letter from the Shenzhen Securities Regulatory Bureau for failing to report certain responsibilities, and a fine of HKD 25.2 million from the Hong Kong Securities and Futures Commission for anti-money laundering deficiencies[122]. Shareholder Information - The total number of shares increased to 8,907,948,568 due to the conversion of convertible bonds, with 614 shares converted since July 2019[12]. - The company reported a total of 3,884,079,181 RMB in guarantees, which accounts for 2.94% of the company's net assets[143]. - The company has a balance of 2,034,484,411 RMB in bonds issued by related parties at the end of the period, up from 1,902,757,860 RMB at the beginning of the period, showing an increase of approximately 6.9%[135]. - The company has a balance of 1,586,289,419 RMB in bonds held by related parties at the end of the period, up from 1,019,216,438 RMB at the beginning of the period, indicating an increase of approximately 55.4%[136]. - The company has a remaining balance of CNY 6,999,705,000 in A-share convertible bonds, which could convert into 360,809,536 A-shares if fully converted[162]. - The company’s controlling shareholder's stake will be diluted from 23.05% to 22.15% following the conversion of the convertible bonds[162]. - The company has resolved competition issues with Shanghai Securities through a capital increase, reducing its stake from 51% to 24.99%[166]. - The company’s major shareholder Shanghai International Group holds approximately 2,012,109,666 A shares, representing 26.77% of the A share category and 22.59% of the total issued share capital[191]. Business Operations - The company has established a comprehensive risk management system for innovative businesses, ensuring risks are measurable and controllable[108]. - The company has implemented various measures to ensure business continuity during the COVID-19 pandemic, including remote work and online services[168]. - The company has been approved to issue corporate bonds with a total face value of up to 20 billion RMB, completing the first phase of issuance with a scale of 5 billion RMB at an interest rate of 3.55%[169]. - The company has received qualifications for various business operations, including fund investment advisory and cross-border financing services, enhancing its service capabilities[170]. - The company has established new branches in Hebei, Shaanxi, Hubei, Henan, Shandong, and Liaoning, expanding its operational footprint[177]. - The company has relocated 5 securities business offices and closed 1 during the reporting period, optimizing its branch network[173]. - The company’s total number of securities business offices reached 419, with 343 operated by the company itself[172]. Social Responsibility - The company invested RMB 5 million in the "Hundred Villages Enrichment" project in Shanghai Fengxian District to improve the quality of life for struggling farmers[148]. - A total of 162 impoverished students were supported with an investment of RMB 41.75 million, involving 12 universities[150]. - The "Growing Without Worries" medical insurance project processed 536 claims, totaling RMB 3.03 million in payouts over three years[148]. - The company plans to continue its poverty alleviation efforts in Jiangxi, Sichuan, and Anhui, focusing on financing, industry support, and education improvement[153]. - The total amount invested in targeted poverty alleviation work was RMB 642.45 million[151].