CGS(SH:601881)2018-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 4,306,633,395.93, a decrease of 24.03% compared to CNY 5,668,641,541.89 in the same period of 2017[24]. - The net profit attributable to shareholders for the first half of 2018 was CNY 1,311,046,156.12, down 37.93% from CNY 2,112,212,271.46 in the previous year[24]. - The basic earnings per share for the first half of 2018 was CNY 0.13, a decrease of 38.10% from CNY 0.21 in the same period of 2017[25]. - The weighted average return on equity for the first half of 2018 was 2.01%, down 1.37 percentage points from 3.38% in the previous year[25]. - The company's total revenue decreased by 24.03% year-on-year to ¥4,306,633,395.93, with a gross margin of 39.68%, down 6.57 percentage points[88]. Assets and Liabilities - The total assets as of June 30, 2018, amounted to CNY 263,172,619,020.43, reflecting a 3.28% increase from CNY 254,814,966,451.09 at the end of 2017[24]. - The total liabilities increased by 4.38% to CNY 198,250,066,933.95 as of June 30, 2018, compared to CNY 189,928,532,783.68 at the end of the previous year[24]. - The company's cash and cash equivalents at the end of the period were ¥58,854,809,362.45, accounting for 22.36% of total assets[89]. - The group's total liabilities reached RMB 198.250 billion, with self-owned liabilities at RMB 130.815 billion, resulting in a debt-to-asset ratio of 66.83% after excluding certain liabilities[92]. Risk Management - The company faces significant risks including market volatility, legal compliance, and operational risks due to changes in business models and technologies[5]. - The company emphasizes risk management strategies across organizational structure, management mechanisms, and information technology to mitigate identified risks[5]. - The company has a robust internal control mechanism to manage operational risks, ensuring a healthy operational environment for business development[107]. - The company has established a comprehensive liquidity risk management system, focusing on asset-liability mismatch and cash flow forecasting[108]. - The company has completed the construction of several risk management systems, including market risk measurement and liquidity risk management systems[111]. Business Operations - The company operates 472 securities branches across 31 provinces, making it the securities company with the largest branch network in China[46]. - The company aims to become a leading comprehensive securities firm by enhancing its dual-driven business model and expanding its overseas operations[38]. - The company has established business relationships with 84 fund companies and expanded its institutional sales to include 14 QFII and RQFII clients[59]. - The company’s financing and securities lending services provided leverage to clients, enhancing their financing capabilities[33]. - The company’s investment banking services generated significant revenue through underwriting and advisory fees, supporting its position in the market[34]. Regulatory Compliance - The report is unaudited, and the board of directors guarantees the accuracy and completeness of the financial report[4]. - The company has complied with all provisions of the Corporate Governance Code, except for the rotation of directors every three years, which is currently in preparation[181]. - The company received an administrative penalty decision from the People's Bank of China on July 27, 2018[184]. - The company was fined a total of RMB 1 million for failing to identify customer identities as per the Anti-Money Laundering Law[185]. - The company has improved its anti-money laundering mechanisms, including customer identification and suspicious transaction reporting processes[185]. Shareholder Information - The total number of ordinary shareholders was 110,181, with 109,426 being A-share holders and 755 being H-share holders[192]. - The top ten shareholders held a total of 5,160,610,864 shares, representing 50.91% of the total shares issued[194]. - The company's major shareholders include China Galaxy Financial Holdings with 5,160,610,864 shares, which remain restricted until January 2020[191]. - The shares held by the National Social Security Fund will have 57,132,376 shares released from restrictions on January 23, 2020[199]. - The company has no changes in controlling shareholders or actual controllers during the reporting period[200]. Social Responsibility - The company donated a total of RMB 451,300 for poverty alleviation efforts in the first half of 2018[165]. - A total of 180 registered impoverished individuals were lifted out of poverty through the company's initiatives[167]. - The company has set a total investment of RMB 20 million for ecological public welfare forest construction in Gansu Province[168]. - The company is actively involved in educational poverty alleviation by recruiting qualified teachers for support in six minority regions[171]. - The company has committed to enhancing the financing efficiency for enterprises in impoverished areas through various capital market channels[171]. Future Plans - The company plans to leverage financial technology innovations to enhance operational efficiency and customer service capabilities[74]. - The company aims to enhance its wealth management platform and improve its professional trading services to adapt to market changes[74]. - The company plans to continue enhancing internal control and compliance management related to anti-money laundering efforts[185]. - The company aims to establish itself as a leading investment bank, focusing on improving liquidity safety and optimizing asset allocation[122]. - The company plans to increase its targeted poverty alleviation efforts by adding three new national-level poverty-stricken areas[170].