2018-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 10,942,263,173.65, a decrease of 14.58% compared to the same period last year[27]. - The net profit attributable to shareholders of the parent company was CNY 3,030,926,355.46, down 24.67% year-on-year[27]. - The net cash flow from operating activities was negative at CNY -11,592,732,605.41, indicating a decline in cash generation[27]. - Total assets increased by 7.20% to CNY 573,220,488,083.88 compared to the end of the previous year[27]. - Total liabilities rose by 9.69% to CNY 444,247,698,053.48, reflecting increased financial obligations[27]. - Basic earnings per share decreased by 25.71% to CNY 0.26 compared to the same period last year[28]. - The weighted average return on equity decreased by 1.01 percentage points to 2.56%[28]. - The comprehensive income total for the first half of 2018 was CNY 2,554,081,337.31, a decline of 44.03% from the previous year[37]. - The company reported a significant increase in receivables, which rose by 69.32% to CNY 12,600,996,253.23[32]. - The total amount of short-term borrowings increased by 22.81% to CNY 37,719,377,336.57[34]. Risk Management - The company faces significant risks including policy risks, compliance risks, credit risks, market risks, operational risks, liquidity risks, and reputational risks[7][8]. - The company has established a compliance management framework to mitigate these risks[128]. - The company closely monitors credit risk associated with its financial products and has implemented strict measures for risk management, including daily monitoring and diversified investments[130]. - Market risk is primarily related to fluctuations in stock prices, interest rates, and exchange rates, with the company employing a diversified investment strategy to manage these risks[133]. - The company has implemented a comprehensive internal control system to mitigate operational risks, including regular self-assessments and evaluations by the audit department[136]. - The company has established a liquidity risk management framework, ensuring that liquidity risk exposure is maintained within reasonable limits through effective monitoring and control mechanisms[138]. - The company has built a multi-level risk management system that covers various risk categories and business lines, enhancing risk identification, assessment, and response processes[143]. Corporate Governance - The company has established a comprehensive governance structure, holding 17 meetings of various committees during the reporting period[191]. - The board of directors consists of 13 members, including 5 independent non-executive directors, ensuring compliance with legal and regulatory requirements[194]. - The company has received approval from the regulatory authority for amendments to its articles of association, enhancing its governance framework[192]. - The compliance director has strictly fulfilled compliance management responsibilities without any violations from shareholders, directors, or senior management[200]. - The company promotes a compliance culture with the philosophy of "compliance for all, starting from management, creating value through compliance, and compliance as the foundation for survival"[200]. Social Responsibility - The company allocated RMB 2.35 million for poverty alleviation efforts, including RMB 225,000 for industry development projects[185]. - The company has established a long-term assistance mechanism with local governments in poverty-stricken areas, focusing on technical support, financial services, and talent exchange[182]. - The company actively engages in social responsibility through various charitable activities, including educational support and community development initiatives[184]. - The company has signed framework agreements for paired assistance with poverty-stricken counties to promote regional economic development[182]. - The company plans to continue its poverty alleviation efforts in the second half of 2018, aiming to support paired impoverished counties in achieving poverty alleviation and enhancing local economic development[188]. Audit and Compliance - The financial report for the first half of 2018 has not been audited[5]. - The company appointed Lixin CPA as the domestic auditor and Deloitte as the international auditor for the 2018 fiscal year[157]. - The company has continuously improved its compliance management in accordance with the requirements of the China Securities Regulatory Commission[200]. - There has been a focus on compliance management across all business lines, enhancing pre-review, monitoring, and post-check processes[200]. Market Position and Operations - The company maintains a leading position in the industry, benefiting from strong capital strength and comprehensive financial service capabilities[44]. - In the first half of 2018, the company ranked third in the number of IPO projects and fourth in equity financing among all investment banks in Hong Kong[51]. - The company completed a total trading volume of 5,154.6 billion CNY in stocks and funds, representing a year-on-year increase of 9.6%[60]. - The company operates 331 securities and futures branches across 30 provinces and municipalities in China[49]. - The company has a customer base of nearly 13 million clients both domestically and internationally as of June 30, 2018[50].