Founder Securities(SH:601901)2015-08-28 16:00Financial Performance - Total operating revenue for the first half of 2015 reached ¥5,618,779,550.64, a significant increase of 189.64% compared to the same period last year[28]. - Net profit attributable to shareholders was ¥2,926,052,501.90, reflecting a 273.16% increase year-over-year[28]. - The net cash flow from operating activities surged to ¥21,527,102,725.69, marking a dramatic increase of 3195.95% compared to the previous year[28]. - Basic earnings per share rose to ¥0.36, up 176.92% from ¥0.13 in the same period last year[30]. - The total assets of the company reached ¥175,957,945,520.77, representing a 102.43% increase from the end of the previous year[28]. - The total liabilities increased to ¥141,850,374,188.57, a rise of 152.77% compared to the previous year-end[28]. - The weighted average return on equity improved to 9.15%, an increase of 4.22 percentage points year-over-year[30]. - The company's net capital as of June 30, 2015, was ¥180.84 billion, up 37.62% from ¥131.40 billion at the end of 2014[31]. - The asset-liability ratio increased to 71.22%, up 17.27 percentage points from the previous year[30]. - Cash and cash equivalents rose to ¥72,490,078,653.32, a 221.50% increase compared to the end of 2014[38]. Business Operations - The company holds various qualifications for securities-related businesses, including securities brokerage and asset management[16]. - The company has a comprehensive range of business qualifications, including direct investment and financial product agency[16]. - The company opened 214 branches and increased shareholder accounts and institutional clients by over 700% compared to the previous year[54]. - The internet financial products reached a scale of RMB 7.3 billion, with mobile account openings constituting 95.59% of total openings[54]. - The company plans to continue leveraging various financing channels to enhance its leverage ratio and drive further business growth[46]. - The company expanded its internet finance business, with mobile account openings accounting for 95.59% of total openings and internet financial products reaching a scale of 7.3 billion[67]. - The asset management division launched innovative products, including the first securities-backed asset securitization in the industry[71]. Investments and Financing - The company issued short-term bonds totaling RMB 48 billion during the reporting period, with a total debt financing tool stock of RMB 384.18 billion[52]. - The company raised a total of RMB 228 billion through three issuances of subordinated bonds and RMB 48 billion through two issuances of short-term corporate bonds[153]. - The company decided to invest 15% of its net assets, amounting to RMB 491.68 million, in purchasing blue-chip stock ETFs on July 6, 2015[154]. - The company received approval to pilot equity incentive financing for listed companies, indicating a strategic move towards innovative financing solutions[77]. Legal and Regulatory Matters - The company faced legal disputes, including an arbitration case with Zhengquan Holdings regarding an asset purchase agreement, which involved freezing RMB 1.773 billion in bank deposits across 17 accounts[118]. - The court later lifted the freeze on RMB 1 billion of the company's bank deposits, leaving RMB 773 million still frozen[119]. - The company was ordered by the Beijing High People's Court to repay 238,885,700 yuan in principal and interest to Aerospace Science and Industry Asset Management Co., with a deadline of ten days after the judgment[131]. - The company received a regulatory decision from the Hunan Securities Regulatory Bureau mandating the re-election of all directors and non-employee supervisors by February 16, 2015[146]. - The company is under investigation by the China Securities Regulatory Commission for alleged violations related to customer identity verification[159]. Shareholder Information - The total number of shareholders at the end of the reporting period was 320,250[164]. - The largest shareholder, Beijing Daxing Group Co., Ltd., holds 27.75% of the shares, totaling 2,284,609,852 shares[164]. - The second-largest shareholder, Beijing Zhengquan Holdings Co., Ltd., holds 21.86% of the shares, totaling 1,799,591,164 shares[164]. - A total of 189,850,536 restricted shares were released for trading on August 10, 2015[163]. Management and Governance - The company’s board of directors and supervisory board were restructured, appointing several new members[157]. - The company appointed new executives, including He Qicong as Chairman and He Yagang as President, as part of a board restructuring[175]. - The company has committed to resolving competition issues with Minzu Securities and its subsidiaries within five years following the completion of the major asset restructuring[143]. Audit and Financial Reporting - The financial report for the first half of 2015 has not been audited by an accounting firm, but the management has confirmed its accuracy and completeness[4]. - The audit opinion for the financial statements of the company for 2014 was a non-standard unqualified opinion due to issues related to the acquisition of Minzu Securities, which was not consolidated in the financial statements as control had not been achieved[113]. - The company has not included Minzu Securities in its consolidated financial statements due to lack of control, following disputes among shareholders regarding board elections and integration plans[142].