南华期货(603093) - 2024 Q2 - 季度财报

Important Notice This section provides crucial disclaimers and assurances regarding the accuracy and forward-looking statements within the report - The company has no profit distribution or capital reserve conversion plan for the first half of 2024[3] - Forward-looking statements in this report, including future plans, development strategies, and business plans, do not constitute actual commitments to investors; investors are advised to be aware of the risks[4] - The company's business is highly correlated with the domestic and international macroeconomic environment and capital market trends, facing significant risks such as market risk, credit risk, operational risk, and information system risk[5] - Any discrepancies between totals and the sum of their components in this report are due to rounding[6] - The company's Board of Directors, Board of Supervisors, and its directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content and assume legal responsibility[7] - This semi-annual report is unaudited[7] Section I Definitions This section defines key terms, abbreviations, and entities used throughout the report, including company names, regulatory bodies, and reporting periods - Company, Nanhua Futures refers to Nanhua Futures Co., Ltd[11] - Reporting period refers to January-June 2024, and the end of the reporting period refers to June 30, 2024[11] - Abbreviations for regulatory and trading institutions such as the China Securities Regulatory Commission (CSRC), China Futures Association (CFA), major futures exchanges, and stock exchanges are listed[11] - The controlling shareholder, Hengdian Group Holdings Co., Ltd., and the actual controller, Dongyang Hengdian Community Economic Enterprise Federation, are specified[11] - Detailed names and abbreviations of major domestic and international subsidiaries, such as Nanhua Capital, Nanhua Fund, and Grand China International, are listed[11] Section II Company Profile and Key Financial Indicators This section presents the company's fundamental information, including its legal structure, key personnel, business licenses, and a summary of its main financial performance and position indicators I. Company Information This section details Nanhua Futures Co., Ltd.'s basic information, including legal representatives, general manager, registered capital and net capital, and comprehensive business qualifications across its domestic and international subsidiaries - The company's legal representative is Luo Xufeng, and the general manager is Jia Xiaolong[13] Registered Capital and Net Capital | Indicator | End of Current Reporting Period (yuan) | End of Previous Year (yuan) | | :--- | :--- | :--- | | Registered Capital | 610,065,893 | 610,065,893 | | Net Capital | 1,520,035,195.19 | 1,518,044,877.01 | - The company holds major business qualifications including commodity futures brokerage, financial futures brokerage, futures investment consulting, asset management, and mutual fund sales agency[14] - Domestic subsidiary Nanhua Capital possesses qualifications for warehouse receipt services, cooperative hedging, basis trading, pricing services (OTC derivatives), market-making, and hazardous chemical operations[16][17][18][19] - Domestic subsidiary Nanhua Fund holds business qualifications for fund raising, sales, asset management, and specific client asset management[19] - Overseas subsidiary Grand China International and its affiliates hold diversified financial service licenses in Hong Kong, USA, Singapore, and the UK, covering futures brokerage, asset management, securities trading, and clearing membership[20][21][23][24][25][27] II. Contact Persons and Information This section provides detailed contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, faxes, and email addresses Contact Persons and Information | | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Zhong Yiqiang | Yu Fengduo | | Contact Address | Room 1201, Hengdian Building, Shangcheng District, Hangzhou, Zhejiang Province | Room 1201, Hengdian Building, Shangcheng District, Hangzhou, Zhejiang Province | | Phone | 0571-87833551 | 0571-87833551 | | Fax | 0571-88385371 | 0571-88385371 | | Email | nanhua-ir@nawaa.com | nanhua-ir@nawaa.com | III. Brief Introduction to Changes in Basic Information This section briefly states that the company's registered and office addresses changed in October 2021 from Xihu Avenue to Hengdian Building in Shangcheng District, Hangzhou, with other basic information remaining unchanged - The company's registered and office addresses have been changed to Rooms 301, 401, 501, 701, 901, 1001, 1101, and 1201, Hengdian Building, Shangcheng District, Hangzhou[29] - The company's website is http://www.nanhua.net, and its email address is nanhua-ir@nawaa.com[29] IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations This section discloses the company's designated information disclosure newspapers as "Shanghai Securities News" and "Securities Times," the website for semi-annual reports as the Shanghai Stock Exchange website, and the report custody location as the company's Board Office Information Disclosure and Document Custody Locations | Item | Content | | :--- | :--- | | Company's selected newspapers for information disclosure | Shanghai Securities News, Securities Times | | Website address for semi-annual report publication | http://www.sse.com.cn | | Company's semi-annual report custody location | Board Office, 12th Floor, Hengdian Building, Shangcheng District, Hangzhou, Zhejiang Province | V. Brief Introduction to Company Shares This section briefly introduces the company's stock listing information, including stock type, listing exchange, stock abbreviation, and stock code Company Shares Overview | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | Former Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Nanhua Futures | 603093 | Not applicable | VII. Company's Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for the first half of 2024, showing a 16.14% year-on-year decrease in operating revenue but a 36.73% increase in net profit attributable to parent company shareholders Key Accounting Data (Jan-Jun) | Key Accounting Data | Current Reporting Period (Jan-Jun) (yuan) | Prior Period (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,637,505,189.71 | 3,145,282,203.41 | -16.14 | | Net Profit Attributable to Parent Company Shareholders | 230,183,757.68 | 168,353,399.71 | 36.73 | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-recurring Items) | 228,593,446.59 | 161,126,463.42 | 41.87 | | Net Cash Flow from Operating Activities | 2,553,054,337.19 | 1,681,898,165.52 | 51.80 | | Other Comprehensive Income | 22,972,700.19 | 45,794,508.55 | -49.84 | Key Accounting Data (Period-end) | Key Accounting Data | End of Current Reporting Period (yuan) | End of Previous Year (yuan) | Period-end YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 41,324,380,752.05 | 36,325,522,383.33 | 13.76 | | Total Liabilities | 37,398,276,354.45 | 32,612,603,010.07 | 14.67 | | Equity Attributable to Parent Company Shareholders | 3,916,252,916.43 | 3,703,377,667.90 | 5.75 | | Total Owners' Equity | 3,926,104,397.60 | 3,712,919,373.26 | 5.74 | Key Financial Indicators (Jan-Jun) | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.38 | 0.28 | 35.71 | | Diluted Earnings Per Share (yuan/share) | 0.38 | 0.28 | 35.71 | | Basic EPS After Non-recurring Gains/Losses (yuan/share) | 0.37 | 0.26 | 42.31 | | Weighted Average Return on Net Assets (%) | 6.03 | 4.93 | Increased by 1.10 percentage points | | Weighted Average Return on Net Assets After Non-recurring Gains/Losses (%) | 5.99 | 4.72 | Increased by 1.27 percentage points | Parent Company's Net Capital and Risk Control Indicators (Period-end) | Item | End of Current Reporting Period (yuan) | End of Previous Year (yuan) | | :--- | :--- | :--- | | Net Capital | 1,520,035,195.19 | 1,518,044,877.01 | | Ratio of Net Capital to Total Risk Capital Reserve (%) | 207 | 246 | | Ratio of Net Capital to Net Assets (%) | 48 | 47 | | Ratio of Liquid Assets to Liquid Liabilities (%) | 605 | 511 | | Ratio of Liabilities to Net Assets (%) | 26 | 28 | | Settlement Reserve Amount | 412,324,897.02 | 1,169,693,947.75 | IX. Non-recurring Gains and Losses Items and Amounts This section lists the company's non-recurring gains and losses items and their amounts for the first half of 2024, totaling 1,590,311.09 yuan, primarily from disposal of non-current assets and fair value changes of financial instruments Non-recurring Gains and Losses Item and Amount | Non-recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets, including the write-back of impairment provisions | 123,309.71 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains or losses from disposal of financial assets and liabilities, excluding those related to effective hedging activities in normal business operations | 468,858.83 | | Other non-operating income and expenses apart from the above | 1,504,884.65 | | Less: Income tax impact | 501,494.35 | | Impact on minority interests (after tax) | 5,247.75 | | Total | 1,590,311.09 | Section III Management Discussion and Analysis This section provides an in-depth analysis of the company's industry, core competencies, operational performance, and financial status during the reporting period, along with a discussion of key risks and mitigation strategies I. Explanation of the Company's Industry and Main Business Operations during the Reporting Period In the first half of 2024, the global economic environment was complex, with volatile commodity markets highlighting the importance of futures and derivatives; China's futures market maintained stable development with expanding product varieties and increasing institutional and industrial participation - From January to June 2024, the national futures market's cumulative trading volume reached 3.46 billion lots, with a cumulative turnover of 281.51 trillion yuan[38] - China's exchanges have listed a total of 133 futures and related derivatives, covering major sectors of the national economy such as agriculture, metals, energy, chemicals, shipping, and finance[38] - The institutionalization and industrialization of futures market participants continue to advance, gradually enhancing their effectiveness in serving the real economy[39] - The company's main businesses include futures brokerage, wealth management, risk management, overseas financial services, and futures investment consulting[40] II. Analysis of Core Competitiveness The company's core competitiveness stems from its comprehensive derivatives business licenses, robust risk control and compliance systems, experienced management team, and growing financial technology capabilities, enabling a multi-business synergistic financial service platform - The company has initially formed a comprehensive financial service platform integrating spot and futures, on-exchange and OTC, public and private funds, domestic and international operations, and online and offline services[44] - The company has 11 branches and 28 business departments nationwide, is a member of SHFE, DCE, ZCE, CFFEX, GFEX, INE, and also a trading participant of SSE and SZSE[44] - Grand China International has completed its layout in four international cities: Hong Kong (China), Chicago (USA), Singapore, and London (UK), covering the three major time zones of Asia, Europe, and North America[45] - The company has established a four-tier risk management organizational structure comprising the Board of Directors, Board Special Committees, Chief Risk Officer, operating management, and business departments, and has consistently received an A-class AA rating for many consecutive years[45][47] - The company's senior management team is characterized by rich management experience, strong business capabilities, and a younger workforce; Chairman Luo Xufeng has been recognized as the "Best Helmsman of Chinese Futures Companies" for many consecutive years[47] - The company continuously promotes the development of technology finance and digital finance, independently developing key technological products such as the Nanhua High-Speed Trading System (NHTD), Data Interconnection Platform, APP, Futures-Spot Trading Risk Management System, and Shenghua Derivatives System[47] III. Discussion and Analysis of Operating Performance In the first half of 2024, the company achieved steady business growth, with futures brokerage client equity reaching 25.77 billion yuan, risk management business adding 32.47 billion yuan in notional principal for OTC derivatives, and Nanhua Fund's AUM reaching 21.42 billion yuan - As of June 30, 2024, the company's domestic futures brokerage client equity reached 25.77 billion yuan[50] - OTC derivatives business added 32.47 billion yuan in notional principal, with 59 'Insurance + Futures' projects implemented, totaling 1.097 billion yuan in notional principal[51] - Basis trading business accumulated 1.975 billion yuan in new basis trade volume[51] - Market-making business covers 33 varieties, achieving a trading volume of 83.75 billion yuan from January to June 2024[52] - As of the end of June 2024, Nanhua Fund's AUM was 21.42 billion yuan, and the company's asset management business scale was 198 million yuan[53] - Overseas financial services business obtained clearing qualifications from the ICE-US exchange, further enhancing its clearing memberships at mainstream exchanges[54] IV. Key Operating Performance during the Reporting Period This section analyzes the company's key operating performance during the reporting period, including changes in financial statement items, asset and liability status, and analysis of major controlled and investee companies (I) Analysis of Main Business This section analyzes changes in the company's key financial statement items, noting a 153.43% year-on-year decrease in investment income due to reduced futures closing gains in risk management, and a 51.80% increase in net cash flow from operating activities due to increased client equity Analysis Table of Changes in Financial Statement Items | Item | Current Period (yuan) | Prior Period (yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -73,560,760.14 | 137,676,532.83 | -153.43 | Primarily due to reduced futures closing gains in the company's risk management business | | Net Exposure Hedging Income | 8,968,282.76 | -51,938,088.93 | N/A | Primarily due to increased holding gains/losses on hedged items in risk management business | | Fair Value Change Income | 86,110,190.11 | -108,849,270.07 | N/A | Primarily due to increased holding gains/losses on futures in the company's risk management business | | Exchange Gains | -3,835,591.12 | -2,440,557.26 | N/A | Primarily due to exchange rate fluctuations of non-functional currencies of overseas subsidiaries | | Credit Impairment Losses | 21,617,787.08 | 34,676,104.73 | -37.66 | Primarily due to a year-on-year decrease in the increase of monetary margin receivables in the current period | | Asset Impairment Losses | -1,198,030.92 | 3,945,081.66 | -130.37 | Decrease in contract performance costs and reversal of bad debt provisions at the end of the current period | | Non-operating Income | 3,862,782.66 | 871,550.33 | 343.21 | Primarily due to recovery of previously recognized losses | | Income Tax Expense | 40,727,550.43 | 25,184,396.00 | 61.72 | Primarily due to a year-on-year increase in total profit for the current period | | Net Cash Flow from Operating Activities | 2,553,054,337.19 | 1,681,898,165.52 | 51.80 | Primarily due to a significant increase in client equity in the current period | | Net Cash Flow from Investing Activities | -637,934,613.41 | 249,726,030.02 | -355.45 | Primarily due to a significant increase in fixed deposits in the current period | | Net Cash Flow from Financing Activities | -167,847,955.34 | 64,625,442.76 | -359.72 | Primarily due to a decrease in bank loans and an increase in repayments of maturing debts in the current period | (III) Analysis of Assets and Liabilities This section details changes in the company's asset and liability status, with total assets reaching 41.32 billion yuan and total liabilities 37.40 billion yuan, both increasing year-on-year, and overseas assets accounting for 28.37% of total assets Changes in Assets and Liabilities | Item Name | Period-end Amount (yuan) | Period-end % of Total Assets | Prior Year-end Amount (yuan) | Prior Year-end % of Total Assets | Period-end YoY Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Settlement Reserve | 43,180,846.74 | 0.10 | 15,683,847.86 | 0.04 | 175.32 | Primarily due to increased trading volume in overseas securities business | | Monetary Margin Receivable | 12,107,339,900.30 | 29.30 | 9,035,656,922.51 | 24.87 | 34.00 | Primarily due to increased client equity leading to increased receivables from exchanges | | Accounts Receivable Financing | - | 0.00 | 4,690,000.00 | 0.01 | -100.00 | Primarily due to no bank acceptance bills at the end of the current period | | Inventory | 273,009,490.25 | 0.66 | 112,021,505.67 | 0.31 | 143.71 | Primarily due to an increase in the spot scale of basis trading at the end of the current period | | Trading Financial Liabilities | 107,263,022.21 | 0.26 | 65,001,912.35 | 0.18 | 65.02 | Primarily due to an increase in derivative liabilities | | Contract Liabilities | 69,924,279.19 | 0.17 | 29,611,101.87 | 0.08 | 136.14 | Primarily due to an increase in deposits received for unexecuted spot contracts | | Other Payables | 1,072,466,887.85 | 2.60 | 1,898,534,899.40 | 5.23 | -43.51 | Primarily due to a decrease in performance bonds received from clients for derivative financial instruments | - Total overseas assets amounted to 11.72 billion yuan, accounting for 28.37% of total assets[59] Major Asset Restrictions as of the End of the Reporting Period | Item | Period-end Book Balance (yuan) | Restriction Type | Reason for Restriction | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 22,918,776.92 | Frozen | Business frozen funds, lease contract deposits, risk reserves | | Trading Financial Assets | 1,964,231,539.85 | Pledged, Frozen | Government bond funds and money market funds pledged to exchanges as margin; securities investment funds held for a period of no less than 3 years | | Inventory | 129,919,489.87 | Pledged | Pledged through warehouse receipts to offset exchange margin | (IV) Analysis of Investment Status This section primarily describes the company's financial assets measured at fair value, with specific details provided in the notes to the financial report - Information on financial assets measured at fair value is detailed in Note XIV of the financial report, Section X of this report[63] (VI) Analysis of Major Controlled and Investee Companies This section analyzes the operating performance of the company's major controlled and investee companies, including Nanhua Capital with 2.36 billion yuan in total assets and 3.28 million yuan in net profit, Nanhua Fund with 159.39 million yuan in total assets and 337,900 yuan in net profit, and Grand China International with 11.72 billion yuan in total assets and 200.23 million yuan in net profit Operating Performance of Major Controlled and Investee Companies | Company Name | Registered/Paid-in Capital | Total Assets (million yuan) | Net Assets (million yuan) | Operating Revenue (million yuan) | Net Profit (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Nanhua Capital | 700 million yuan | 2,364.81 | 712.65 | 1,977.60 | 3.28 | | Nanhua Fund | 250 million yuan | 159.39 | 148.98 | 32.56 | 0.34 | | Grand China International | 826 million HKD | 11,722.61 | 1,544.65 | 321.02 | 200.23 | (VII) Information on Structured Entities Controlled by the Company As of June 30, 2024, five structured entities managed and invested by the company, including Nanhua Futures Yuanheng No. 2 Single Asset Management Plan, are consolidated into the company's financial statements due to the company's substantive rights and expected variable returns exceeding 30% - As of June 30, 2024, the company and its subsidiaries, as managers of asset management plans, invested in Nanhua Futures Yuanheng No. 2 Single Asset Management Plan, Nanhua All-Star FOF Collective Asset Management Plan, Nanhua Tongzhou No. 1 Collective Asset Management Plan, Nanhua Yuanheng Balance No. 1 Collective Asset Management Plan, and Nanhua Commodity No. 1 Collective Asset Management Plan, all of which are included in the company's consolidated financial statements[67][68] - The basis for consolidation is that the company possesses substantive rights and expects variable returns with a comprehensive yield greater than 30% through its shareholdings, management fees, or performance fees in these asset management plans[68] V. Other Disclosures This section details the company's potential market, credit, operational, regulatory, and information system risks, along with the corresponding prevention and mitigation strategies (I) Potential Risks The company faces market risks (e.g., market volatility, client default), credit risks (e.g., counterparty default), operational risks (e.g., internal procedural errors), regulatory risks (e.g., policy changes, compliance issues), and information system risks (e.g., system failures, defects), with overseas operations also exposed to international market and regulatory differences - The company's business is highly correlated with the domestic and international macroeconomic environment and capital market trends, and significant fluctuations in the capital market and adjustments in futures industry regulatory policies will have a major impact on the company's operating performance[5] - Market risks may lead to fluctuations in futures market trading volume, continuous decline in brokerage fee rates, client loss, reduction in client margins, decrease in market share, and client defaults[69] - Credit risk primarily manifests as economic losses due to counterparty failure to fulfill contractual obligations, such as client defaults, or the inability or deliberate default of OTC derivatives counterparties or basis trading spot counterparties[70] - Operational risk refers to the risk of losses incurred by the company due to incomplete or erroneous internal procedures or personnel operations, such as lack of institutional frameworks for key business operations, improper operations, occupational fraud, or violations of laws and regulations[71] - Regulatory risk refers to the risk of legal sanctions, regulatory measures, property losses, or reputational damage incurred by the company due to its or its employees' business management or professional conduct violating laws, regulations, and standards; overseas regulatory differences may lead to sanctions and fines[72][73] - Information system risk refers to the risk of direct or indirect losses due to incomplete or failed systems, which may cause information system failures and affect clients' normal trading[75] 2. Main Risk Prevention Countermeasures and Measures The company implements comprehensive risk prevention strategies, including market risk assessment, dynamic margin adjustments, stop-loss settings, real-time monitoring, credit evaluation, performance bond systems, robust internal procedures, dual-person reviews, compliance training, and multi-center disaster recovery systems for IT - To address market risks, the company conducts comprehensive market risk assessments, promptly adjusts announced margin levels, calculates hedging thresholds for hedged items, sets stop-loss points, and monitors asset price fluctuations in real-time[75] - To address credit risks, the company conducts pre-event risk assessments to understand client creditworthiness, monitors client margin risk levels in real-time, establishes a client evaluation system, and collects performance bonds[76] - To address operational risks, the company establishes a compliant, applicable, and clear daily operational system, formulates strict business processes and authority divisions, employs dual-person review for important positions, and establishes emergency plans[78] - To address regulatory risks, the company continuously establishes and improves its overall internal control system, utilizing modern management systems (such as OA office system, trading risk control system, anti-money laundering system, etc.) for full-process compliance risk monitoring[79] - To address information system risks, the company's IT system construction adheres to industry standards, possesses multiple data centers in Shanghai and Hangzhou, and has co-located data centers at several exchanges, establishing complete trading production backups and heterogeneous trading systems[80][81] Section IV Corporate Governance This section outlines the company's corporate governance structure, including details on shareholder meetings, changes in directors, supervisors, and senior management, and proposals for profit distribution I. Brief Introduction to Shareholder Meetings The company's 2023 Annual General Meeting was held on April 12, 2024, approving key proposals including the annual report, profit distribution, and amendments to the Articles of Association, presided over by Chairman Luo Xufeng - The company's 2023 Annual General Meeting was held on April 12, 2024, using a combination of on-site and online voting[84] - The meeting approved proposals including "Resolution on the Company's <2023 Annual Report> and Summary," "Resolution on 2023 Profit Distribution," and "Resolution on Amending the "[83][84] - The shareholder meeting was presided over by Mr. Luo Xufeng, the company's Chairman, with directors, supervisors, and senior management attending[85] II. Changes in Directors, Supervisors, and Senior Management During the reporting period, there were changes in the company's senior management and independent directors, with Mr. Wang Li resigning as Deputy General Manager and CFO, Ms. Li Li appointed as Financial Officer, and Mr. Guan Qingyou resigning as independent director, replaced by Mr. Xu Lin Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Change | | :--- | :--- | :--- | | Wang Li | Deputy General Manager, CFO | Resigned | | Li Li | Financial Officer | Appointed | | Guan Qingyou | Independent Director | Resigned | | Xu Lin | Independent Director | Elected | III. Profit Distribution or Capital Reserve Conversion Plan The company has no profit distribution or capital reserve conversion plan for the first half of 2024 - The company has no profit distribution or capital reserve conversion plan for the first half of 2024[3][87] Section V Environmental and Social Responsibility This section details the company's environmental protection efforts, green operational practices, and contributions to poverty alleviation and rural revitalization initiatives I. Environmental Information As a financial service company, Nanhua Futures integrates energy-saving and emission-reduction measures into daily operations, utilizing green practices like OA systems and electronic billing, and reported no environmental law violations during the period - As a financial service company, the company's daily operations do not involve manufacturing, and it integrates major energy-saving and emission-reduction measures into its daily office activities[89] - The company advocates green office practices, maximizing the use of information technology to reduce energy consumption, such as developing its own OA office system, widely adopting remote futures account opening, video conferencing, and electronic billing services[90] - During the reporting period, the company was not penalized for violating environmental laws and regulations[90] II. Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization The company actively supports rural revitalization through industrial assistance (59 "Insurance + Futures" projects, 1.097 billion yuan notional principal), educational aid (Ganlin Scholarship Fund), consumption support (99,000 yuan in agricultural product procurement), and establishing a charitable trust - The company established a Rural Revitalization Working Group led by Chairman Luo Xufeng, actively exploring sustainable rural revitalization efforts by leveraging its industry characteristics and advantages[92] - In the first half of 2024, the company completed 59 "Insurance + Futures" projects, with an insured value (notional principal) of 1.097 billion yuan[51][93] - The company initiated and established the Hangzhou Ganlin Scholarship Foundation, which in 2024 supported 51 students from the Nanhua Ganlin Class at Taijiang County National Middle School in Guizhou Province to pass the college entrance exam for undergraduate programs, with 50 admitted to top-tier universities[93][94] - In May 2024, the company purchased 990 units of Tongjiang County agricultural specialty products (zongzi), totaling 99,000 yuan, to provide consumption assistance[95] - In June 2024, the "Shanben Trust · Zhejiang Gold - Nanhua Charitable Trust" was officially established, with the company contributing 1 million yuan for public welfare and charitable activities, including rural revitalization[95] - In the second half of 2024, the company will continue to consolidate poverty alleviation achievements and promote rural revitalization, including industrial assistance, educational support, consumption assistance, and knowledge empowerment[96] Section VI Significant Matters This section covers important corporate events, including the fulfillment of commitments, absence of illegal guarantees, audit arrangements, integrity status, major related-party transactions, and significant contracts I. Fulfillment of Commitments The company's controlling shareholder, Hengdian Holdings, and the actual controller, Enterprise Federation, have strictly fulfilled their commitments regarding resolving horizontal competition and shareholding reduction post-lockup period - Hengdian Holdings committed that during its direct or indirect shareholding in Nanhua Futures, it would not engage in any business that is the same as, similar to, or constitutes substantial competition with Nanhua Futures' business scope, whether through equity participation, control, joint venture, cooperation, or any other means[98] - The Enterprise Federation also committed that during its direct or indirect shareholding in Nanhua Futures, it would not engage in any business that is the same as, similar to, or constitutes substantial competition with Nanhua Futures' business[98][100] - Hengdian Holdings committed that within two years after the expiration of the share lock-up period, the number of shares reduced would not exceed 10% of its total shares in Nanhua Futures at the time of listing, and the reduction price would not be lower than the offering price of this issuance and listing[100] - Directors, supervisors, and senior management committed that during their tenure as directors, senior management, or supervisors of Nanhua Futures, they would not transfer more than 25% of their total shares in the company annually; they also committed not to transfer any shares held within 6 months after their departure[100] III. Illegal Guarantees During the reporting period, the company did not provide any external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company did not provide any external guarantees in violation of prescribed decision-making procedures[8] IV. Semi-Annual Report Audit Status During the reporting period, the company re-appointed Tianjian Certified Public Accountants (Special General Partnership) as its domestic auditor for 2024, which has served the company for 12 years; this semi-annual report is unaudited - During the reporting period, the company re-appointed Tianjian Certified Public Accountants (Special General Partnership) as its domestic auditor for 2024[102] - This accounting firm has provided audit services to the company for 12 years since the share reform in 2012[102] - This semi-annual report is unaudited[7] IX. Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller during the Reporting Period During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled court judgments or significant overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled court judgments or significant overdue debts[102] X. Significant Related-Party Transactions This section discloses the company's significant related-party transactions during the reporting period, including joint external investments and adherence to fair and transparent transaction principles (III) Significant Related-Party Transactions of Joint External Investments The company jointly invested in Zhejiang Honglanmu Investment Management Co., Ltd. with Zhejiang Nanhua Investment Management Co., Ltd. and Chengdu Huli Enterprise Consulting Management Co., Ltd., with Honglanmu having a registered capital of 12.05 million yuan and a net loss of 1.23 million yuan as of the reporting period end Significant Related-Party Transactions of Joint External Investments | Joint Investor | Related Party Relationship | Investee Company Name | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Nanhua Investment Management Co., Ltd., Chengdu Huli Enterprise Consulting Management Co., Ltd. | Other | Zhejiang Honglanmu Investment Management Co., Ltd. | Investment management, asset management | 12,050,000 | 5,122,237.19 | 5,050,050.27 | -1,228,998.30 | - As of the end of the reporting period, Nanhua Futures Co., Ltd. held a 24.896% equity stake in Zhejiang Honglanmu Investment Management Co., Ltd[105] - The company strictly conducts related-party transactions in accordance with relevant requirements, adhering to principles of fairness, openness, and impartiality[106] - During the reporting period, the company's ordinary related-party transactions were executed in accordance with the "Resolution on Estimated Ordinary Related-Party Transactions for the Company in 2024" approved at the company's 2023 Annual General Meeting[106] XI. Significant Contracts and Their Performance This section discloses the company's and its subsidiaries' significant guarantees during the reporting period, totaling 146.03 million yuan, representing 3.72% of the company's net assets, all provided for subsidiaries with a debt-to-asset ratio exceeding 70% 2 Significant Guarantees Performed and Not Yet Performed During the Reporting Period During the reporting period, the company's guarantees for subsidiaries totaled 146.03 million yuan, representing 3.72% of net assets, all for entities with a debt-to-asset ratio exceeding 70%, primarily involving credit guarantees from overseas subsidiaries to their own subsidiaries Total Company Guarantees | Item | Amount (yuan) | | :--- | :--- | | Total guarantees provided to subsidiaries during the reporting period | 146,028,800.00 | | Total outstanding guarantees to subsidiaries at period-end (B) | 146,028,800.00 | | Total guarantees (A+B) | 146,028,800.00 | | Total guarantees as a percentage of the company's net assets (%) | 3.72 | | Debt guarantees provided directly or indirectly to guaranteed entities with a debt-to-asset ratio exceeding 70% (D) | 146,028,800.00 | | Total of the above three guarantee amounts (C+D+E) | 146,028,800.00 | - Explanation of guarantees: These are credit guarantees from overseas subsidiaries to their own subsidiaries, with guarantee agreements signed with banks covering the total credit limit[109] Section VII Changes in Shares and Shareholder Information This section provides an overview of changes in the company's share capital and detailed information about its shareholders, including the top ten shareholders I. Changes in Share Capital During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[113] II. Shareholder Information As of the end of the reporting period, the company had 21,310 common shareholders, with Hengdian Group Holdings Co., Ltd. being the controlling shareholder, holding 69.68% of the shares - As of the end of the reporting period, the total number of common shareholders was 21,310[114] Top Ten Shareholders' Shareholding (Excluding Shares Lent via Securities Refinancing) | Shareholder Name | Period-end Shareholding | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Hengdian Group Holdings Co., Ltd. | 425,120,900 | 69.68 | Domestic Non-State-Owned Legal Person | | Dongyang Henghua Investment Partnership (Limited Partnership) | 24,480,000 | 4.01 | Domestic Non-State-Owned Legal Person | | Zhejiang Hengdian Import & Export Co., Ltd. | 10,000,000 | 1.64 | Domestic Non-State-Owned Legal Person | | Hengdian Group DMEGC Co., Ltd. | 10,000,000 | 1.64 | Domestic Non-State-Owned Legal Person | | Yang Relie | 5,447,200 | 0.89 | Domestic Natural Person | | HKSCC Nominees Limited | 4,613,146 | 0.76 | Other | | Industrial Bank Co., Ltd. - Southern Financial Theme Flexible Allocation Mixed Securities Investment Fund | 2,131,600 | 0.35 | Unknown | | Shanghai Pudong Development Bank Co., Ltd. - CCB CSI 1000 Enhanced Index Initiating Securities Investment Fund | 1,239,800 | 0.20 | Unknown | | Huaxia Bank Co., Ltd. - Huaxia Zhisheng Pioneer Stock Securities Investment Fund (LOF) | 867,600 | 0.14 | Unknown | | Agricultural Bank of China Co., Ltd. - Tianhong CSI 1000 Enhanced Index Securities Investment Fund | 852,300 | 0.14 | Unknown | - Hengdian Holdings is the company's controlling shareholder; Dongyang Henghua is the company's management shareholding platform, with Hengdian Holdings as the general partner; Hengdian Holdings directly holds 50.59% of Hengdian DMEGC's equity; Hengdian Holdings directly and indirectly holds 75.00% of Hengdian Import & Export's equity[118] Section VIII Preferred Shares Information This section confirms the absence of preferred shares related information for the reporting period - During the reporting period, the company had no preferred shares related information[120] Section IX Bonds Information This section details the company's bond issuances, including basic information on sub-bonds, and provides an analysis of interest-bearing debt structure and major liability changes I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments The company issued two tranches of sub-bonds totaling 500 million yuan, with a coupon rate of 4.98% and a 6-year term, including an issuer's redemption option at the end of the third year 1. Basic Information on Corporate Bonds The company issued two tranches of sub-bonds, "22 Nanhua C1" and "22 Nanhua C2," totaling 300 million yuan and 200 million yuan respectively, both with a 4.98% coupon rate and a 6-year term, including an issuer's redemption option at the end of the third year Corporate Bonds Basic Information | Bond Name | Abbreviation | Code | Bond Balance (yuan) | Interest Rate (%) | Maturity Date | | :--- | :--- | :--- | :--- | :--- | :--- | | Nanhua Futures Co., Ltd. 2022 Non-public Issuance of Subordinated Bonds to Professional Investors (Tranche 1) | 22 Nanhua C1 | 194718.SH | 300,000,000 | 4.98 | June 27, 2028 (If the company exercises its redemption option, the maturity date for the redeemed portion of the bonds will be June 27, 2025) | | Nanhua Futures Co., Ltd. 2022 Non-public Issuance of Subordinated Bonds to Professional Investors (Tranche 2) | 22 Nanhua C2 | 182355.SH | 200,000,000 | 4.98 | August 2, 2028 (If the company exercises its redemption option, the maturity date for the redeemed portion of the bonds will be August 2, 2025) | - The company has a redemption option, allowing it to announce whether to exercise the redemption option for each tranche of bonds 30 trading days before the interest payment date of the third interest-bearing year[124] - If the company does not exercise its redemption right, each tranche of bonds will continue for the 4th, 5th, and 6th years, and the coupon rate will be adjusted to the initial coupon rate plus 300 basis points starting from the fourth interest-bearing year[124] (V)Significant Matters Related to Corporate Bonds During the Reporting Period During the reporting period, the company had no non-operating intercompany receivables or fund borrowings; its consolidated interest-bearing debt balance was 882 million yuan, a 20.18% year-on-year decrease, comprising 509 million yuan in corporate credit bonds and 373 million yuan in bank loans - At the beginning and end of the reporting period, the company's consolidated non-operating intercompany receivables and fund borrowings from other parties were both 0 billion yuan[126] - At the beginning and end of the reporting period, the company's consolidated interest-bearing debt balances were 1.105 billion yuan and 882 million yuan, respectively, representing a year-on-year change of -20.18% in interest-bearing debt during the reporting period[130] Company's Consolidated Interest-Bearing Debt Structure | Interest-Bearing Debt Category | Within 6 Months (incl.) (billion yuan) | Over 6 Months (billion yuan) | Total Amount (billion yuan) | Percentage of Total Interest-Bearing Debt (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate Credit Bonds | - | 0.509 | 0.509 | 57.71 | | Bank Loans | 0.362 | 0.011 | 0.373 | 42.29 | | Total | 0.362 | 0.520 | 0.882 | 100.00 | Major Liabilities and Reasons for Their Changes | Liability Item | Period-end Balance (yuan) | 2023 Year-end Balance (yuan) | Change (%) | Explanation for Change Exceeding 30% | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Liabilities | 107,263,022.21 | 65,001,912.35 | 65.02 | Primarily due to an increase in derivative liabilities | | Futures Investor Protection Fund Payable | 327,816.86 | 669,659.70 | -51.05 | Primarily due to lower provision for futures investor protection fund payable in the semi-annual period compared to the full previous year | | Employee Remuneration Payable | 92,697,245.22 | 133,002,463.38 | -30.30 | Primarily due to lower provision for total employee remuneration in the semi-annual period compared to the full previous year | | Contract Liabilities | 69,924,279.19 | 29,611,101.87 | 136.14 | Primarily due to an increase in deposits received for unexecuted spot contracts | | Fees and Commissions Payable | 7,124,137.22 | 4,912,652.58 | 45.02 | Primarily due to an increase in client fee reductions in the current period | | Other Payables | 1,072,466,887.85 | 1,898,534,899.40 | -43.51 | Primarily due to a decrease in performance bonds received from clients for derivative financial instruments | | Other Current Liabilities | 22,031,900.92 | 16,947,708.34 | 30.00 | Primarily due to an increase in the amount of hedged items in basis trading business | | Lease Liabilities | 19,706,660.60 | 14,788,739.24 | 33.25 | Primarily due to an increase in house lease payables for periods longer than one year | | Deferred Income Tax Liabilities | 1,115,659.40 | 2,714,769.20 | -58.90 | Primarily due to a decrease in taxable temporary differences in the current period | | Other Liabilities | 8,400,720.47 | 14,983,014.82 | -43.93 | Primarily due to a decrease in house lease payables due within one year | Section X Financial Report This section presents the company's comprehensive financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes on accounting policies and financial risks II. Financial Statements This section includes Nanhua Futures Co., Ltd.'s consolidated and parent company balance sheets as of June 30, 2024, and consolidated and parent company income statements, cash flow statements, and statements of changes in owners' equity for January-June 2024 Consolidated Balance Sheet (June 30, 2024) | Item | June 30, 2024 (yuan) | December 31, 2023 (yuan) | | :--- | :--- | :--- | | Total Assets | 41,324,380,752.05 | 36,325,522,383.33 | | Total Liabilities | 37,398,276,354.45 | 32,612,603,010.07 | | Total Owners' Equity (or Shareholders' Equity) | 3,926,104,397.60 | 3,712,919,373.26 | Consolidated Income Statement (First Half of 2024) | Item | First Half of 2024 (yuan) | First Half of 2023 (yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 2,637,505,189.71 | 3,145,282,203.41 | | III. Operating Profit (Loss indicated by "-") | 270,038,845.79 | 195,338,022.09 | | IV. Total Profit (Total Loss indicated by "-") | 271,204,223.52 | 193,493,137.15 | | V. Net Profit (Net Loss indicated by "-") | 230,476,673.09 | 168,308,741.15 | | 1. Net Profit Attributable to Parent Company Shareholders (Net Loss indicated by "-") | 230,183,757.68 | 168,353,399.71 | | VII. Total Comprehensive Income | 253,449,373.28 | 214,103,249.70 | | VIII. Earnings Per Share: (I) Basic Earnings Per Share (yuan/share) | 0.38 | 0.28 | Consolidated Cash Flow Statement (First Half of 2024) | Item | First Half of 2024 (yuan) | First Half of 2023 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 2,553,054,337.19 | 1,681,898,165.52 | | Net Cash Flow from Investing Activities | -637,934,613.41 | 249,726,030.02 | | Net Cash Flow from Financing Activities | -167,847,955.34 | 64,625,442.76 | | Net Increase in Cash and Cash Equivalents | 1,741,826,499.80 | 2,003,904,710.91 | | VI. Period-end Balance of Cash and Cash Equivalents | 10,074,881,019.35 | 5,944,764,450.16 | III. Company Basic Information Nanhua Futures Co., Ltd., formerly Nanhua Futures Co., Ltd., was restructured into a joint-stock company in 2012 and listed on the Shanghai Stock Exchange in 2019, with a registered capital of 610.07 million yuan, primarily engaged in futures brokerage, asset management, and investment consulting - Nanhua Futures Co., Ltd., formerly Nanhua Futures Co., Ltd., was restructured into a joint-stock company on October 18, 2012, and listed on the Shanghai Stock Exchange on August 30, 2019[161] - The company's registered capital is 610.065893 million yuan, with a total of 610.065893 million shares[161] - The company operates in the futures industry, primarily providing services such as commodity futures brokerage, financial futures brokerage, futures investment consulting, asset management, and mutual fund sales agency[161] - The company consolidates 24 subsidiaries, including Grand China International Financial Co., Ltd. and Zhejiang Nanhua Capital Management Co., Ltd., as well as 5 structured entities, including Nanhua Futures Yuanheng No. 2 Single Asset Management Plan, into its financial statements for the reporting period[162] IV. Basis for Preparation of Financial Statements The company's financial statements are prepared on a going concern basis, with no significant doubts about its ability to continue as a going concern for the next 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[163] - There are no matters or circumstances that cause significant doubt about the company's ability to continue as a going concern for the next 12 months from the end of the reporting period[164] V. Significant Accounting Policies and Estimates This section details the company's adherence to accounting standards, accounting period, operating cycle, functional currency, materiality, business combinations, consolidated financial statements, financial instrument classification, inventory, contract costs, revenue recognition, government grants, deferred taxes, leases, general risk reserves, segment reporting, and hedge accounting - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, accurately and completely reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows[166] - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, and its operating cycle is short, using 12 months as the liquidity classification standard for assets and liabilities[167][168] - Financial assets are initially classified into three categories: financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, and financial assets measured at fair value through profit or loss[178] - Futures brokerage fee income is recognized when economic benefits related to the transaction can flow into the company, the related income can be reliably measured, and funds are settled with clients for buying and selling futures contracts or with exchanges[232] - The company's commodity trading business involves performance obligations fulfilled at a specific point in time, and commodity trading revenue is recognized when commodity ownership is transferred, payment has been received or a collection voucher obtained, and related economic benefits are likely to flow in[235] - Hedging includes fair value hedges, cash flow hedges, and hedges of net investments in foreign operations; for qualifying hedges, hedge accounting methods are applied[249] VI. Taxation This section discloses the company's main tax categories and rates, including VAT, property tax, urban maintenance and construction tax, education surcharges, and corporate income tax, with varying rates for different entities and some subsidiaries enjoying small-profit enterprise tax incentives Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate (%) | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Output tax calculated based on sales of goods and taxable services as per tax laws, minus deductible input tax for the current period, with the difference being VAT payable | 6%, 9%, 13% | | Property Tax | For ad valorem taxation, 1.2% of the remaining value after a one-time deduction of 30% from the original value of the property; for rental taxation, 12% of rental income | 1.2%, 12% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7%, 5% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | | Goods and Services Tax (GST) | Actual amount of turnover tax paid | 9%[Note 1] | | Corporate Income Tax | Taxable income | 25%, 8.25%, 13.5%, 16.5%, 19%, 20%, 30.5%, 17%, 0% | - Heilongjiang Henghua Agricultural Industry Service Co., Ltd. is a small-profit enterprise; according to relevant policies, the portion of annual taxable income not exceeding 3 million yuan is subject to a 25% reduction in taxable income and a 20% corporate income tax rate[255] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on various consolidated financial statement items, including cash, settlement reserves, margin receivables, trading financial assets, inventory, long-term equity investments, fixed assets, intangible assets, deferred tax assets/liabilities, short-term borrowings, margin payables, trading financial liabilities, and owners' equity Details of Cash and Bank Balances by Category | Item | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Cash on Hand | 49,844.40 | 104,387.07 | | Bank Deposits | 22,616,337,896.52 | 20,428,493,405.02 | | Including: Futures Margin Deposits | 20,687,539,789.15 | 18,576,301,605.77 | | Other Cash and Bank Balances | 150,157,490.38 | 67,664,821.37 | | Total | 22,766,545,231.30 | 20,496,262,613.46 | | Including: Total Funds Held Overseas | 5,125,510,173.58 | 4,677,492,616.53 | - As of June 30, 2024, cash and bank balances included 4,000.00 yuan in frozen business funds, 697,144.00 yuan in lease contract deposits, and 22,217,632.92 yuan in risk reserves, all subject to restrictions[259] Details of Settlement Reserve by Category | Category | Book Balance (yuan) | Percentage (%) | Bad Debt Provision (yuan) | Provision Rate (%) | Book Value (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Provision for bad debts by portfolio | 44,757,169.26 | 100 | 1,576,322.52 | 3.52 | 43,180,846.74 | Details of Monetary Margin Receivable by Category | Category | Book Balance (yuan) | Percentage (%) | Bad Debt Provision (yuan) | Provision Rate (%) | Book Value (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Provision for bad debts by portfolio | 12,150,805,352.85 | 100 | 43,465,452.54 | 0.36 | 12,107,339,900.30 | Details of Pledged Margin Receivable | Exchange Name | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Shanghai Futures Exchange | 1,275,392,252.00 | 1,197,251,480.00 | | Zhengzhou Commodity Exchange | 47,098,168.00 | 310,610,416.00 | | Dalian Commodity Exchange | 17,499,328.00 | 245,767,232.00 | | China Financial Futures Exchange | 78,305,699.20 | 67,633,910.40 | | Shanghai International Energy Exchange Co., Ltd. | 31,628,800.00 | 16,006,752.00 | | Guangzhou Futures Exchange | 12,311,100.00 | 1,359,360.00 | | Total | 1,462,235,347.20 | 1,838,629,150.40 | Trading Financial Assets | Item | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Financial assets classified as at fair value through profit or loss | 3,570,100,858.59 | 3,824,226,705.88 | | Including: Debt instrument investments | 1,953,545,539.85 | 2,067,431,181.61 | | Equity instrument investments | 876,861,642.82 | 686,687,375.77 | | Derivative financial assets | 739,693,675.92 | 1,070,104,824.28 | | Bank wealth management products | - | 3,324.22 | | Total | 3,570,100,858.59 | 3,824,226,705.88 | Inventory | Item | Period-end Balance (yuan) | Impairment Provision (yuan) | Book Value (yuan) | | :--- | :--- | :--- | :--- | | Merchandise Inventory | 273,009,490.25 | - | 273,009,490.25 | | Including: Hedged Items | 272,938,458.52 | - | 272,938,458.52 | | Total | 273,009,490.25 | - | 273,009,490.25 | Classification of Long-term Equity Investments | Item | Period-end Book Value (yuan) | Period-beginning Book Value (yuan) | | :--- | :--- | :--- | | Investments in Joint Ventures | 1,387,865.72 | 656,784.70 | | Investments in Associates | 657,514.44 | 1,693,837.14 | | Total | 2,045,380.16 | 2,350,621.84 | Fixed Assets | Item | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Original Cost of Fixed Assets | 316,044,015.31 | 315,115,358.57 | | Less: Accumulated Depreciation | 83,138,189.36 | 72,224,831.45 | | Total Fixed Assets | 232,905,825.95 | 242,890,527.12 | Right-of-Use Assets | Item | Period-end Book Value (yuan) | Period-beginning Book Value (yuan) | | :--- | :--- | :--- | | Buildings and Structures | 30,085,338.50 | 31,313,461.80 | | Total | 30,085,338.50 | 31,313,461.80 | Intangible Assets | Item | Period-end Book Value (yuan) | Period-beginning Book Value (yuan) | | :--- | :--- | :--- | | Land Use Rights | 150,689,319.11 | 153,152,904.71 | | Software | 7,351,521.31 | 8,353,774.47 | | Total | 158,040,840.42 | 161,506,679.18 | Net Deferred Income Tax Assets/Liabilities After Offset | Item | Period-end Offset Amount of Deferred Income Tax Assets and Liabilities (yuan) | Period-end Balance of Deferred Income Tax Assets or Liabilities After Offset (yuan) | | :--- | :--- | :--- | | Deferred Income Tax Assets | 36,992,312.26 | 1,318,667.95 | | Deferred Income Tax Liabilities | 41,912,177.15 | 1,115,659.40 | Assets Restricted by Ownership or Right of Use | Item | Period-end Book Balance (yuan) | Restriction Type | Restriction Details | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 22,914,776.92 | Frozen | Business frozen funds, lease contract deposits, risk reserves | | Trading Financial Assets | 1,964,231,539.85 | Pledged, Frozen | Government bond funds and money market funds pledged to exchanges as margin; securities investment funds held for a period of no less than 3 years | | Inventory | 129,919,489.87 | Pledged | Pledged through warehouse receipts to offset exchange margin | Short-term Borrowing Classification | Item | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Pledged Loans | 130,466,704.00 | 15,120,888.00 | | Guaranteed Loans | 130,000,000.00 | 200,220,458.33 | | Credit Loans | 242,836,912.24 | 394,319,236.42 | | Total | 503,303,616.24 | 609,660,582.75 | Mon