NSC(SH:601990)2018-08-27 16:00Financial Performance - The company's operating revenue for the first half of the year was CNY 637,171,877.18, a decrease of 6.30% compared to the same period last year[35]. - The net profit attributable to shareholders of the parent company was CNY 186,344,485.29, down 23.17% year-on-year[35]. - The net cash flow from operating activities was CNY 418,382,125.68, reflecting a significant decline of 63.92% compared to the previous year[35]. - Total assets increased to CNY 25,481,945,516.60, representing an 8.43% growth from the end of the previous year[36]. - The total liabilities rose to CNY 14,904,780,534.44, marking a 5.70% increase year-on-year[36]. - The basic earnings per share decreased to CNY 0.08, down 20.00% from the same period last year[37]. - The weighted average return on equity fell to 1.97%, a decrease of 0.63 percentage points compared to the previous year[37]. - The company's net capital at the end of the reporting period was CNY 8,411,363,528.32, an increase from CNY 7,416,833,648.53 at the end of the previous year[37]. - The liquidity coverage ratio was 628.14%, down from 742.43% at the end of the previous year[37]. Business Operations - The company continues to engage in various financial services including securities brokerage, investment banking, and asset management[41]. - The company's securities brokerage business generated revenue of 511.85 million RMB, with a gross margin of 65.23%, showing a decrease of 1.50% year-on-year[52]. - The investment banking business saw a significant increase in revenue, reaching 83.80 million RMB, up 104.75% year-on-year, with a gross margin of 57.23%[52]. - The company opened 10 new branches and relocated 2 existing offices during the reporting period, bringing the total number of securities business offices to 95[53]. - The company maintained a strong regional presence, with 49.47% of its branches located in Jiangsu province, which is one of the wealthiest regions in China[47]. Risk Management - The company faces significant risks including policy risk, market risk, credit risk, liquidity risk, and operational risk, which are closely tied to the domestic macroeconomic environment and capital market trends[7]. - The company's management emphasizes the importance of risk management strategies to mitigate potential impacts from market fluctuations and regulatory changes[7]. - The company has established a risk management system that includes sensitivity analysis and stress testing to assess market risk exposure[75]. - Credit risk is managed through strict client credit assessments and dynamic management of credit limits in financing and margin trading[77]. - The company has a liquidity risk control mechanism based on net capital and dynamic monitoring to ensure compliance with regulatory requirements[78]. Share Capital and Ownership - The registered capital of Nanjing Securities remained at CNY 2,473,999,503, while net capital increased to CNY 8,411,363,528.32 from CNY 7,416,833,648.53, reflecting a growth of approximately 13.4%[14]. - Nanjing Securities issued 27,502 million new shares on June 1, 2018, increasing total share capital to 2,749,019,503 shares, with the registration change pending completion[15]. - The total share capital increased from 2,473,999,503 shares to 2,749,019,503 shares after the issuance of 27,502,000 new shares[110]. - The proportion of limited sale shares decreased from 100% to 90% following the issuance of new shares[109]. - The largest shareholder, Nanjing Zijin Investment Group, holds 746,150,470 shares, accounting for 27.14% of the total shares[113]. Compliance and Governance - The board of directors and senior management affirm the accuracy and completeness of the financial report, taking responsibility for any misstatements or omissions[4]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties during the reporting period[7]. - The company has committed to not transferring or entrusting the management of its shares for 36 months post-IPO, ensuring stability in shareholding[88]. - The company will avoid and minimize related party transactions, ensuring fairness and transparency in all dealings[89]. - The company has confirmed that there are no legal or regulatory conflicts with its business operations, ensuring compliance with industry standards[89]. Community Engagement and Social Responsibility - The company reported a total funding of 54.86 million RMB for poverty alleviation efforts during the reporting period[98]. - A total of 18 registered impoverished individuals were helped to escape poverty through the company's initiatives[98]. - The company provided vocational skills training to 100 individuals as part of its employment transfer poverty alleviation efforts[99]. - The company has been recognized as an "Advanced Unit in Poverty Alleviation Work" by Tongxin County for its efforts in poverty alleviation[101]. - The company plans to continue its partnership with Tongxin County, focusing on industrial poverty alleviation and attracting more enterprises for local investment and project development[103]. Financial Instruments and Accounting Policies - The company adheres to the accounting policies and estimates as per the enterprise accounting standards, ensuring the financial statements reflect a true and complete picture of its financial status[176]. - The company recognizes income, expenses, and profits from subsidiaries or businesses acquired during the reporting period in the consolidated profit statement[183]. - The company recognizes the difference between the disposal price and the net asset share of the subsidiary in the consolidated financial statements as other comprehensive income before losing control[186]. - Financial instruments include financial assets, financial liabilities, and equity instruments, classified at initial recognition based on the company's intent and ability to hold them[192]. - The company assesses the carrying value of financial assets at the balance sheet date for impairment[200].