SWHY(000166)2023-08-30 16:00Financial Performance - Revenue for the reporting period was RMB 12,239,516,642.10, a decrease of 4.52% compared to the same period last year[14] - Net profit attributable to shareholders of the listed company was RMB 3,747,733,668.18, an increase of 11.48% year-on-year[14] - Net cash flow from operating activities reached RMB 48,244,730,960.61, a significant increase of 89.07% compared to the previous year[14] - Total assets amounted to RMB 638,776,832,740.51, showing a 4.19% increase from the end of the previous year[14] - Basic earnings per share were RMB 0.15, representing a 15.38% increase compared to the same period last year[14] - The company's parent company revenue was RMB 1,040,638,584.94, a sharp decrease of 66.75% year-on-year[15] - Parent company net profit was RMB 885,309,696.61, a 70.77% decrease compared to the same period last year[15] - Consolidated revenue for the first half of 2023 was RMB 12.24 billion, a decrease of 4.52% year-on-year[39] - Net profit attributable to shareholders of the parent company was RMB 3.748 billion, an increase of 11.48% year-on-year[39] - Basic earnings per share were RMB 0.15, an increase of 15.38% year-on-year[39] - Weighted average return on equity (ROE) was 3.85%, an increase of 0.38 percentage points year-on-year[39] - Total operating income for the company was RMB 12,239,516,642.10, a decrease of 4.52% compared to the same period last year[106] - Enterprise finance segment achieved an operating income of RMB 2,214,111,671.61, with a year-on-year increase of 76.16%[106] - Personal finance segment reported an operating income of RMB 4,075,409,730.72, a decrease of 7.58% compared to the previous year[106] - Institutional services and trading segment generated an operating income of RMB 5,343,176,985.37, down 16.08% year-on-year[106] - Investment management segment saw an operating income of RMB 606,818,254.40, a decrease of 22.72% compared to the same period last year[106] - Total operating profit for the company was RMB 5,013,992,093.73, an increase of 21.19% year-on-year[108] Risk Management - The report includes detailed descriptions of potential market risks, credit risks, liquidity risks, operational risks, policy risks, legal compliance risks, innovative business risks, reputation risks, and exchange rate risks[2] - The company has implemented a unified internal rating system and strengthened credit risk management for business entities[131] - Liquidity risk management includes dynamic monitoring of liquidity indicators and regular stress testing[132] - Operational risks are addressed through system improvements, staff training, and enhanced risk assessment mechanisms[133] - Policy risks are mitigated by closely monitoring regulatory changes and adjusting risk control policies accordingly[134] - The company conducts regular liquidity risk emergency drills to enhance crisis response capabilities[132] - Market risk management includes optimizing quantitative risk indicators and conducting stress tests[130] - The company focuses on improving the credit quality of bond investments and monitoring liquidity conditions[131] - The company has strengthened its compliance culture and legal training to mitigate legal and compliance risks, including anti-money laundering measures and regulatory inspections[135] - The company has established specialized committees to review and manage innovation business risks, ensuring risk control and steady development of new products and services[136] - The company has integrated reputation risk management into its comprehensive risk management system, with mechanisms for risk identification, assessment, and emergency response[137] - The company manages foreign exchange risk through hedging strategies, with a low net foreign currency exposure relative to total business exposure[138] Corporate Governance - The report mentions the company's compliance with the "Corporate Governance Code" and "Standard Code" as per the Hong Kong Listing Rules[6] - The company's financial statements are signed by the company's legal representative, executive director, general manager, CFO, and head of the planning and finance department[2] - The company has a well-defined corporate governance structure, adhering to legal and regulatory requirements, and has established various internal control systems[140] - The 2022 annual general meeting saw a 63.14% participation rate, with all proposed resolutions, including the 2022 financial report and profit distribution plan, being approved[141] - The company's board of directors consists of 11 members, including executive, non-executive, and independent non-executive directors, ensuring diversified governance[142] - The executive committee members as of the reporting date include Liu Jian (Chairman), Huang Hao (Vice Chairman),任全胜, and刘越[143] - Liu Jian, the Chairman of Shenwan Hongyuan Group, holds a Ph.D. in Monetary Banking from the People's Bank of China Graduate School and is a certified public accountant[144] - Chen Hanwen, an independent non-executive director, has extensive academic experience, including roles at Xiamen University and the University of International Business and Economics[145] - Zhao Lei, an independent non-executive director, has a strong background in law and finance, with roles at Southwest University of Political Science and Law and the Chinese Academy of Social Sciences[146] - Fang Rongyi, the Chairman of the Supervisory Board, has held key financial and regulatory positions, including at the People's Bank of China and Shenwan Hongyuan Securities[147] Business Strategy and Operations - The company's semi-annual report for 2023 covers the period from January 1, 2023, to June 30, 2023[9] - The report has not been audited, but it has been reviewed by PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers in accordance with Chinese and international review standards[2] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the first half of 2023[2] - The company's subsidiaries include Shenwan Hongyuan Securities, Hongyuan Wealth, Hongyuan Wisdom, Hongyuan Futures, and Shenwan Hongyuan International, among others[5][6] - The report highlights the company's focus on fixed income, currency, and commodities (FICC) as part of its business strategy[6] - The company's A-shares are listed on the Shenzhen Stock Exchange, and its H-shares are listed on the Hong Kong Stock Exchange[5] - The report emphasizes the company's commitment to environmental and social responsibility, as outlined in the "Environment and Social Responsibility" section[3] - The company maintains a leading position in the securities industry, leveraging its dual-structure advantage of "investment holding group + securities subsidiary"[23] - The company's business model remains unchanged, focusing on four main areas: corporate finance, personal finance, institutional services & trading, and investment management[26] - The company has a comprehensive business layout, covering securities, investment, funds, and futures, providing diversified financial products and services[40] - The company has a strong regional advantage, with strategic layouts in Shanghai, Xinjiang, and other key regions, aligning with national development strategies[35] - The company has established a robust risk management system, ensuring compliance and effective control of operational risks[36] - The company has a well-developed talent mechanism, focusing on market-oriented human resource development and employee growth[37] - The company is increasing its investment in information technology, focusing on digital transformation and financial technology applications[21] - The company plans to leverage the comprehensive registration system reform to enhance its capital market services and support the real economy in 2023[139] Awards and Recognitions - Shenwan Hongyuan Group won the "Best IR Hong Kong Company (A+H Shares)" award at the 6th New Fortune Best IR Awards[27] - Shenwan Hongyuan Securities received the "Excellent ETF Sales" and "Outstanding REITs Liquidity Provider" awards from the Shenzhen Stock Exchange in 2022[27] - The company was awarded the "Outstanding Market Maker (Soybean No. 2 Options)" and "Advanced Market Maker (Corn Futures)" by the Dalian Commodity Exchange in 2022[28] - Shenwan Hongyuan Securities won the "Best Asset Management Quantitative Team" award at the 2023 China Financial Institutions Annual Summit[28] - Shenwan Investment was recognized as the "Best Fund of Funds" at the PEAS 2022 Annual Equity Investment Awards[29] - Shenwan Futures received the "Outstanding Member Platinum Award" and "Risk Management Service Award (Stock Index Futures)" from the China Financial Futures Exchange[29] - The company was awarded the "Excellent Member Gold Award" and "Outstanding Institutional Service Award" by the Dalian Commodity Exchange[29] - Shenwan Hongyuan Securities was honored with the "Best Investment Advisor Team Award" and "Best Public Fund Allocation Award" by New Fortune in 2023[28] - The company received the "Outstanding Options Market Maker Award" from the Zhengzhou Commodity Exchange[29] - Shenwan Hongyuan Securities was awarded the "Corporate Governance Special Contribution Award" at the 18th China Listed Companies Board of Directors Golden Roundtable Awards[27] - The company has received multiple awards, including the "Best A-share IPO Underwriter" and "Best A-share Equity Underwriter" from WIND[30] - The company has been recognized for its ESG practices, ranking 5th in the "Best ESG Investment Bank" category by New Wealth[31] Capital and Liquidity Management - Core net capital increased by 7.44% to RMB 59.27 billion compared to the end of the previous year[18] - Net capital rose by 5.58% to RMB 85.59 billion, while total assets increased by 6.95% to RMB 556.43 billion[18] - Risk coverage ratio improved by 7.88 percentage points to 265.18%[18] - Liquidity coverage ratio decreased by 42.86 percentage points to 169.26%[18] - The company's net capital to net assets ratio increased slightly by 0.36 percentage points to 75.81%[18] - The company's liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) both meet regulatory standards[132] - The company's monetary funds amounted to RMB 118,136,348,346.12, accounting for 18.49% of total assets[109] - Trading financial assets decreased by 4.95 percentage points to 40.56% of total assets, amounting to RMB 259,118,634,727.58[109] - Other equity instrument investments increased significantly by 6.71 percentage points to 7.04% of total assets, totaling RMB 44,973,098,793.68[109] - Short-term borrowings decreased to 1,780,974,064.70 RMB, a 0.28% change from the previous period[110] - Short-term financing liabilities decreased to 17,927,067,920.54 RMB, a 2.81% change from the previous period[110] - Trading financial liabilities increased to 12,773,892,493.42 RMB, a 2.00% change from the previous period[110] - Derivative financial liabilities increased to 5,153,144,125.70 RMB, a 0.81% change from the previous period[110] - Repurchase financial assets increased to 159,477,887,776.78 RMB, a 24.97% change from the previous period[110] - Client margin deposits increased to 102,429,488,175.33 RMB, a 16.04% change from the previous period[110] - Payables increased to 43,210,796,446.48 RMB, a 6.76% change from the previous period[110] - Bonds payable decreased to 149,604,800,950.93 RMB, a 23.42% change from the previous period[110] - Long-term and short-term debt structure analysis shows total liabilities of 170,351,525,294.06 RMB, with 63.79% being long-term and 36.21% being short-term[116] - Long-term equity investment decreased to 3,821,296,112.54 RMB, a 6.99% decrease from the previous period[118] Investment and Asset Management - The company's asset management plan "Baoying Huiyuanbao No. 10 Collective" has a fair value of RMB 14,309,998,162.74 and a book value of RMB 14,661,361,088.39 at the end of the period[120] - The company's stock investments have a fair value of RMB 220,637,497.86 and a book value of RMB 3,064,234,346.22 at the end of the period[120] - The company's bond investments include "21 Bank of Communications Small and Micro Bond" with a book value of RMB 2,347,332,533.77 and "21 Agricultural Bank of China Small and Micro Bond" with a book value of RMB 1,919,279,177.71[120] - The company's total securities investments at the end of the period amount to RMB 1,548,864,128,992.89[120] - The company issued corporate bonds totaling RMB 2,955,000,000 in 2018, 2021, 2022, and 2023, with RMB 500,000,000 of the 2023 issuance still unused and allocated for debt repayment[123] - The company has no major equity investments or non-equity investments during the reporting period[119] - The company has no major asset or equity sales during the reporting period[124] - The company strictly uses raised funds according to the purposes specified in the prospectus, with unused funds stored in dedicated accounts[123] - The company's asset management scale reached RMB 242.15 billion as of June 30, 2023, with active management scale accounting for 85.53% (RMB 2071.08 billion)[93] - The company's investment management business generated revenue of RMB 607 million in the reporting period[91] - The company's public fund management business oversees approximately 10,980 public fund products with a total net value exceeding RMB 27.69 trillion[97] - The company's large-scale collective public transformation product scale reached RMB 18.859 billion, an increase of 8.48% compared to the end of 2022[93] - The company obtained market-making qualifications for multiple derivatives, including 50ETF options, copper options, and iron ore options, between February and June 2023[90] - The company's ABS underwriting ranked 12th in the market during the reporting period[93] - The company's asset management business saw a decrease in collective asset management scale to RMB 772.62 billion from RMB 1051.73 billion at the end of 2022[94] - The company's single asset management scale decreased to RMB 1212.03 billion from RMB 1445.97 billion at the end of 2022[94] - The company's special asset management scale increased to RMB 436.85 billion from RMB 382.50 billion at the end of 2022[94] - The company launched the "Jinmao Shenwan-Shanghai Jinmao Building-Xinyue Green Asset-Backed Special Plan (Carbon Neutral)", the largest shelf carbon-neutral CMBS in China[95] - The company's public fund investment advisory business has launched 5 categories and 10 portfolio strategies, with an average entrusted assets per client reaching RMB 57,700 and a cumulative reinvestment rate exceeding 75%[98] - The company's public fund investment advisory business has a profit client ratio of nearly 90% for some medium and low-risk portfolios[98] - The company's public fund investment advisory business has allocated over RMB 14 billion in stocks and bonds of small and medium-sized enterprises[98] - The company's total asset management scale exceeded RMB 1.43 trillion as of June 30, 2023[98] - The company's non-monetary public fund asset management scale remains at the forefront of the industry[98] - The company's private fund management business added RMB 1.1 billion in fund management scale and supported small and medium-sized enterprises with RMB 2.818 billion[101] - The company completed 1 IPO project on the STAR Market[101] - The company will focus on the public fund investment advisory business in the second half of 2023, aiming to enhance customer experience and explore business cooperation models with banks and third-party platforms[99] - The company will continue to promote the establishment of specialized and innovative funds and regional funds in the second half of 2023[102] - The company will strengthen investment capacity building and the synergy of "research + investment + investment banking" in the second half of 2023[102] - Buyback and resale financial assets decreased by 49.07% to RMB 8.88 billion, mainly due to a reduction in bond and stock repurchase business[103] - Other equity instrument investments increased by 2,115.72% to RMB 44.97 billion, driven by an increase in non-trading equity investments[103] - Investment income surged by 1,319.44% to RMB 4.08 billion, primarily due to increased gains from the disposal of trading financial assets[103] - Fair value change losses decreased by 49.59% to RMB 2.25 billion, mainly due to reduced gains from derivative financial instruments[103] - Net cash flow from operating activities increased by 89.07% to RMB 48.24 billion, driven by increased cash inflows from the sale of financial instruments held for trading[103] - Net fee and commission income decreased by 12.09% to RMB 3.81 billion, with brokerage business income dropping by 15.40% due to market fluctuations[104] - Investment banking fee income increased by 2.79% to RMB 836.15 million, reflecting improved financial services capabilities[104] - Total investment income and fair value change income reached RMB 6.33 billion, accounting for 51.71% of total revenue, an increase of 33.16% year-on-year[105] - Interest expense decreased by 2.16% to RMB 4.89 billion, mainly due to reduced interest expenses on corporate bonds[105] - Other income, including other gains, exchange losses, and asset disposal income, decreased by 41.79% to RMB 2.19 billion, primarily due to a decline in bulk commodity sales[105] Legal and Compliance - The company's 2023 semi-annual financial report was unaudited[162] - The company renewed its audit contracts with PricewaterhouseCo