2018-08-29 16:00Financial Performance - The company's operating revenue for the first half of the year was ¥4,786,159,748.17, a decrease of 18.31% compared to ¥5,859,242,248.15 in the same period last year[33]. - Net profit attributable to shareholders was ¥1,806,617,011.69, down 29.21% from ¥2,552,259,127.57 year-on-year[34]. - The net cash flow from operating activities significantly increased to ¥16,969,563,551.20, a rise of 1,570.88% compared to ¥1,015,607,169.31 in the previous year[34]. - Total assets at the end of the reporting period reached ¥298,078,433,495.62, reflecting a 4.35% increase from the previous year-end[34]. - The basic earnings per share decreased by 40.55% to ¥0.2098 from ¥0.3529 in the same period last year[35]. - The weighted average return on equity dropped to 2.16%, a decrease of 1.72 percentage points compared to 3.88% in the previous year[35]. - The company's net capital at the end of the reporting period was ¥51,515,163,318.53, down from ¥54,180,986,692.26 at the previous year-end[35]. - The liquidity coverage ratio improved to 403.64%, up from 392.17% in the previous year[35]. - Non-recurring gains and losses totaled ¥7,598,972.81, with significant contributions from government subsidies and asset impairment reversals[37]. - The company's receivables increased by 139.50% to ¥1,878,073,530.59, indicating a rise in collection amounts[39]. Business Qualifications and Operations - The registered capital of China Merchants Securities Co., Ltd. remains at RMB 6,699,409,329.00, unchanged from the previous year[20]. - The company obtained the qualification to conduct cross-border business in April 2018, enhancing its operational capabilities[20]. - The company holds membership qualifications with the China Securities Association and both the Shanghai and Shenzhen Stock Exchanges, indicating its compliance and operational readiness[20]. - The company has a total of 34 business qualifications, including various trading and asset management licenses, with the latest being the "Market Making Business" qualification obtained in March 2018[23]. - The company has been expanding its business capabilities, including qualifications for "Third-party Custody Services" and "Margin Financing and Securities Lending" since 2010[22]. - The company has established a comprehensive asset management service, including qualifications for "Qualified Domestic Institutional Investor" and "Securities Asset Management Business" since January 2015[26]. - The company has been actively involved in the futures market, obtaining qualifications for "Futures Contract Trading" and "Futures Investment Consulting" in 2014 and 2011 respectively[23]. - The company has a strong presence in the Hong Kong market through its subsidiary, with qualifications for various securities and asset management services since 2009[23]. - The company has maintained a consistent growth trajectory in its business qualifications, with several key licenses obtained in the past decade[22]. Risk Management - The company faces various risks including regulatory changes, credit risk, market risk, and operational risk, which could impact its business strategies and performance[8]. - The company emphasizes the importance of risk management and has implemented measures to mitigate potential risks across its operations[10]. - The company has established a comprehensive risk management system, including a global market risk management framework and credit risk management tools[53]. - The company is leveraging its strong brand and unique business resources from the China Merchants Group to enhance its market position and capitalize on new business opportunities[54]. - The company has established a comprehensive risk management quantitative indicator system, covering overall risk, market risk, credit risk, operational risk, and liquidity risk[157]. - The company conducts regular stress tests to evaluate liquidity, credit, market risks, and net capital under extreme scenarios, ensuring effective risk assessment[159]. - The company employs Value at Risk (VaR) as the primary tool for measuring market risk, using a 1-day, 95% confidence level to assess potential losses from market price fluctuations[166]. - The company has implemented measures to manage operational risks, including the establishment of a complete operational risk governance framework and management tools[182]. Market Position and Competitive Landscape - The company ranked 9th in stock underwriting amount and 3rd in bond underwriting amount, maintaining a strong competitive position in the market[47]. - The company ranked first in the market with a custody product number market share of 26.45%[77]. - The company ranked third in the market for corporate bond underwriting and first for asset securitization underwriting, with a market share of 13.26%[83]. - The company successfully underwrote several first-of-their-kind products, including the first batch of "Belt and Road" panda bonds and the first long-term rental apartment mortgage-backed securities[83]. Asset Management and Investment - The asset management business net income for the first half of 2018 was 5.45 billion yuan, an increase of 10.77% compared to 4.92 billion yuan in the same period of 2017[90]. - The total asset management scale as of June 30, 2018, was 6,876.64 billion yuan, a decrease of 11.74% from the end of 2017[90]. - The company’s private equity investment arm, 招商致远资本, achieved an asset management scale exceeding 21 billion yuan and an investment scale exceeding 10 billion yuan by the end of the reporting period[92]. - 博时基金's asset management scale reached 846.1 billion yuan, with public fund assets amounting to 533.5 billion yuan, ranking second in the industry for non-monetary public funds[93]. - As of the end of the reporting period, the asset management scale of China Merchants Fund reached CNY 487.8 billion, with public fund assets amounting to CNY 381.4 billion, ranking 8th in the industry for non-monetary public fund scale[94]. Corporate Governance and Compliance - The company has not reported any non-operational fund occupation by controlling shareholders or related parties, ensuring financial integrity[7]. - The report indicates that the financial statements have not been audited, which may affect the reliability of the reported figures[5]. - The company has committed to avoiding competition with its subsidiaries and has adhered to this commitment during the reporting period[191]. - The company has changed its auditing firm to Deloitte Huayong and Deloitte Guan Huang Chen Fang due to the previous auditor exceeding the five-year limit[192]. - There were no significant lawsuits or arbitration matters during the reporting period[194]. - The company has maintained compliance with all court judgments and has no significant overdue debts[194].