东方证券(03958) - 2025 - 中期业绩

Important Notice This section outlines key disclosures including profit distribution, forward-looking statements, management's responsibility, and major risks Profit Distribution Plan The company's board has approved the 2025 interim profit distribution plan, proposing a cash dividend of RMB 1.20 (tax inclusive) per 10 shares to A-share and H-share holders, totaling approximately RMB 1.012 billion, representing 29.23% of the net profit attributable to parent company shareholders for the first half 2025 Interim Profit Distribution Plan | Indicator | Amount/Ratio | | :--- | :--- | | Cash dividend per 10 shares | RMB 1.20 (tax inclusive) | | Total proposed cash dividend | RMB 1,012,211,857.32 | | % of H1 net profit attributable to parent company shareholders | 29.23% | - A-shares in the company's share repurchase special account will not participate in dividend distribution[5] Risk Statement for Forward-Looking Statements The report may contain forward-looking statements, and investors should be aware of associated investment risks, not over-relying on them, as the company is not obligated to update or revise such statements publicly - Forward-looking statements (e.g., future plans and development strategies) in the report carry investment risks, and the company is not obligated to update them[5] Board of Directors, Supervisory Committee, and Management Statement The company's board, supervisory committee, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the interim report content, assuming individual and joint legal responsibility - The company's Board, Supervisory Committee, and management declare the interim report content is true, accurate, and complete, assuming legal responsibility[6] - The 2025 interim financial report has been reviewed by KPMG, with data presented in RMB[6] Major Risk Disclosures The company's operations are influenced by macroeconomic factors, policies, and market fluctuations, facing inherent risks such as policy, market, credit, operational, liquidity, IT, reputation, and money laundering risks - The company's business is directly affected by macroeconomic conditions, financial policies, and capital market fluctuations[8] - Key risks include: policy risk, market risk, credit risk, operational risk, liquidity risk, information technology risk, reputation risk, and money laundering risk[9] - The company has established a comprehensive risk management system to cover and manage these risks[9] Section 1 Definitions This section provides definitions of common terms used throughout the report to ensure clarity and accurate understanding Definitions of Common Terms This section defines common terms used in the report, including share types (A-shares, H-shares), company entities (Orient Securities, Group subsidiaries), regulatory bodies, laws, and business types, ensuring accurate report understanding - Defines core terms such as A-shares, H-shares, Board of Directors, Company/Our Company/Parent Company/Orient Securities, Group/Our Group/We[17][18] - Clarifies the reporting period as January 1, 2025, to June 30, 2025[19] - Specifically notes that data in the report may have rounding differences[19] Section 2 Company Profile and Key Financial Indicators This section provides an overview of the company's fundamental information, including registration details, contact information, stock overview, and key financial performance metrics Company Information This section presents the company's basic registration details, legal representative, registered capital, and net capital, along with a detailed list of 84 business licenses covering securities, futures, asset management, and investment banking - Company Chinese name: 东方证券股份有限公司, English abbreviation: DFZQ[20] - Legal Representative: Gong Dexiong, General Manager: Lu Dayin[20] Company Registered Capital and Net Capital | Indicator | End of Current Reporting Period (RMB) | End of Previous Year (RMB) | | :--- | :--- | :--- | | Registered Capital | 8,496,645,292.00 | 8,496,645,292.00 | | Net Capital | 57,480,610,892.61 | 53,848,274,965.67 | - The company has a broad business scope, including securities business, securities investment consulting, futures introducing broker business, and holds 84 business licenses[23][24][25][26][27][28][29][30] Contact Persons and Information This section provides contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, faxes, and email addresses, for investor communication - Board Secretary is Wang Rufeng, Securities Affairs Representative is Li Tingting, both located at 11th Floor, 119 South Zhongshan Road, Huangpu District, Shanghai, China[31] Brief Introduction to Basic Information This section outlines the company's registered and office addresses (including Hong Kong business address), website, email, and investor relations and brokerage customer service hotlines, providing essential contact and operational details - The company's registered and office address is Orient Securities Building, 119 South Zhongshan Road, Huangpu District, Shanghai, China, with a Hong Kong business address at 100 Queen's Road Central[32] - The company website is www.dfzq.com.cn, and the investor relations hotline is +86-021-63326373[32] Information Disclosure and Document Availability This section lists the company's selected information disclosure newspapers and their website addresses, as well as the location where the interim report is available, ensuring transparency and accessibility of information - Company information disclosure newspapers include China Securities Journal, Shanghai Securities News, Securities Daily, and Securities Times[33] - The interim report is published on the SSE (www.sse.com.cn) and HKEX (www.hkexnews.hk) websites[33] Company Stock Overview This section provides the listing exchanges, stock abbreviations, and stock codes for the company's A-shares and H-shares, facilitating investor inquiry into trading information Company Stock Information | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-share | SSE | Orient Securities | 600958 | | H-share | HKEX | Orient Securities | 03958 | Other Relevant Information This section discloses information on the domestic and international accounting firms, signing accountants, Chief Risk Officer and Compliance Director, domestic and international legal advisors, and A-share and H-share share registrars - The company engages KPMG Huazhen LLP (domestic) and KPMG (international) for auditing[35] - The Chief Risk Officer and Compliance Director is Jiang Helei[35] Key Accounting Data and Financial Indicators In H1 2025, the company's operating performance grew significantly, with revenue and other income increasing by 26.72% to RMB 12.325 billion, and net profit attributable to shareholders rising by 64.02% to RMB 3.463 billion Key Accounting Data (Consolidated) | Item | Jan-Jun 2025 (RMB '000) | Jan-Jun 2024 (RMB '000) | Current Period vs. Prior Period (%) | | :--- | :--- | :--- | :--- | | Revenue, other income and gains | 12,324,631 | 9,725,722 | 26.72 | | Profit before income tax | 4,293,630 | 2,271,075 | 89.06 | | Profit for the period－attributable to parent company shareholders | 3,463,071 | 2,111,371 | 64.02 | | Net cash (used in)/generated from operating activities | (12,843,799) | 514,675 | -2,595.52 | | Basic earnings per share (RMB/share) | 0.40 | 0.24 | 66.67 | | Weighted average return on net assets (%) | 4.27 | 2.66 | Increase of 1.61 percentage points | Scale Indicators (Consolidated) | Item | Jun 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | End of Current Period vs. End of Prior Year (%) | | :--- | :--- | :--- | :--- | | Total Assets | 437,358,182 | 417,736,375 | 4.70 | | Total Liabilities | 352,523,191 | 336,336,559 | 4.81 | | Equity attributable to parent company shareholders | 84,832,083 | 81,396,740 | 4.22 | | Net assets per share attributable to parent company shareholders (RMB/share) | 10.06 | 9.62 | 4.57 | | Asset-liability ratio (%) | 73.25 | 73.20 | Increase of 0.05 percentage points | Parent Company Net Capital and Risk Control Indicators | Item | End of Current Reporting Period (RMB '000) | End of Previous Year (RMB '000) | | :--- | :--- | :--- | | Net Capital | 57,480,611 | 53,848,275 | | Risk Coverage Ratio (%) | 436.72 | 373.48 | | Capital Leverage Ratio (%) | 18.59 | 18.13 | | Liquidity Coverage Ratio (%) | 192.24 | 202.82 | | Net Stable Funding Ratio (%) | 139.38 | 148.83 | Differences in Accounting Data under Domestic and International Accounting Standards The company's consolidated financial statements prepared under China Accounting Standards and International Financial Reporting Standards show no differences in net profit for January-June 2025 and net assets as of June 30, 2025, and December 31, 2024 - There are no differences in the company's net profit and net asset data under domestic and international accounting standards[42] Section 3 Board of Directors' Report This section provides a comprehensive overview of the company's industry, business operations, core competencies, and key financial performance during the reporting period Industry and Principal Business Overview In H1 2025, China's economy improved with capital market reforms, and the securities industry transformed towards high-quality development, with the company leveraging its "group-based, digital, international" strategy to build three major business systems - In H1 2025, China's economy improved, capital market reforms deepened, and the A-share market generally trended upwards, with the Beijing Stock Exchange 50 Index leading[43][44][45] - The securities industry accelerated its transformation towards high-quality development, with leading brokers expanding through M&A, and smaller brokers seeking specialized development[45] - The company is positioned as a comprehensive securities firm, offering full-range services including securities, futures, asset management, and investment banking[45] - Strategic drivers: Centered on “group-based, digital, and international”[45] - Business systems: Building large wealth, large investment banking, and large institutional business systems[47] - Business segments: Creating four major segments: wealth and asset management, investment banking and alternative investments, institutional and sales & trading, and international and other businesses[48] - Profit model: Through fee and commission income, interest income, investment gains, etc[48] Discussion and Analysis of Operations In H1 2025, the company actively implemented its new three-year strategic plan, focusing on wealth management, investment banking, and institutional services, achieving coordinated development in scale, efficiency, and quality across all business segments - The company, aiming to be a first-class modern investment bank, actively advanced its new three-year strategic plan, focusing on wealth management, investment banking, and institutional services, achieving coordinated development in scale, efficiency, and quality[49] Wealth and Asset Management Wealth and asset management segment continued to deepen its "buyer-side advisory" model, with steady growth in client base and assets under custody, and strong performance across fund advisory, brokerage asset management, private equity, and futures businesses - The company optimized its organizational structure for wealth management, establishing four branches to build a client-centric comprehensive service platform and advance towards a “buyer-side advisory” model[50] Wealth Management Wealth management business developed steadily amidst A-share market stabilization, with client accounts growing 7.52% to 3.139 million and assets under custody increasing 9.21% to RMB 959.3 billion - As of the end of the reporting period, the company's total client accounts reached 3.139 million, a 7.52% increase from the beginning of the year[52] - Total assets under custody were RMB 959.3 billion, a 9.21% increase from the beginning of the year[52] - New clients increased by 228,000, and new account assets introduced were RMB 24.5 billion, up 90% and 45% year-on-year, respectively[52] - Branch equity and fund trading market share was 1.35%, an increase of 0.44 percentage points year-on-year[52] - Non-money market product sales amounted to RMB 11.728 billion, a 24.54% increase year-on-year[53] - Non-money market product holdings were RMB 56.583 billion, a 1.36% increase from the beginning of the year[53] Group Financial Product Sales (RMB 100 million) | Product Type | Jan-Jun 2025 | Jan-Jun 2024 | | :--- | :--- | :--- | | Public Funds (incl. money market) | 873.50 | 541.62 | | Trust Plans | 19.87 | 20.76 | | Private Equity Funds | 4.76 | 1.08 | | Other Financial Products | 8.60 | 21.29 | | Total | 906.74 | 584.75 | - Retail high-net-worth clients numbered 8,985, a 12.13% increase from the beginning of the year, with total assets of RMB 207.025 billion, an 11.28% increase from the beginning of the year[54] - The new-generation low-latency centralized trading system was successfully launched, significantly improving business processing efficiency and client service experience[56] - The Orient Winner APP introduced the Winner T0 strategy trading tool, Winner 50 fund strategy pool, and advisory zone services, enhancing client investment efficiency and satisfaction[56] Fund Advisory Business Fund advisory business developed steadily amid recovering demand for household wealth management, launching 28 portfolio strategies, with assets under management reaching RMB 14.925 billion and 110,400 existing clients - Fund advisory business launched 28 portfolio strategies, covering three product lines: “Yue” series, “Ding” series, and customized series[58] - As of the end of the reporting period, fund advisory assets under management reached RMB 14.925 billion[58] - Existing client count was 110,400, with a client retention rate of 52.83% and a re-investment rate of 75.95%[58] Credit Trading Business Credit trading business operated steadily amidst market fluctuations, with margin financing and securities lending balance at RMB 26.916 billion, a market share of 1.45% - As of the end of the reporting period, the total market balance of margin financing and securities lending was RMB 1,850.452 billion, a 0.76% decrease from the end of the previous year[60] - The company's margin financing and securities lending balance was RMB 26.916 billion, with a market share of 1.45% and an average maintenance guarantee ratio of 278.44%[60] - The company's stock pledge business outstanding repurchase balance was RMB 2.778 billion, a 4.11% decrease from the end of the previous year, all funded by proprietary capital[61] - Future plans include cultivating new profit growth points through structural optimization, refined management, and improved risk control measures[61] Asset Management Asset management business is conducted through Orient Asset Management, Huitianfu Fund, and Orient Capital, with AUM stabilizing and growing across public funds, private equity, and brokerage asset management - The company primarily conducts brokerage asset management through its wholly-owned subsidiary Orient Asset Management, fund management through its associate Huitianfu Fund, and private equity investment through its wholly-owned subsidiary Orient Capital[62] (1) Brokerage Asset Management Business Orient Asset Management accelerated its transformation in H1 2025, continuously improving its investment research, product, and sales systems, driving a stabilization and rebound in total AUM to RMB 233.781 billion - Orient Asset Management had several successful product launches, with Orient Red Core Value raising RMB 1.991 billion and Orient Red Yingfeng FOF raising over RMB 6.5 billion[65] - Its equity funds achieved an absolute return of 80.32% over 10 years, ranking 2nd in the industry; fixed-income funds achieved an absolute return of 35.98% over 7 years, ranking among the top 20[65] Orient Asset Management AUM (RMB 100 million) | Product Type | As of Jun 30, 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | Collective Asset Management Plans | 208.80 | 203.07 | | Single Asset Management Plans | 280.66 | 246.53 | | Special Asset Management Plans | 56.99 | 54.40 | | Brokerage Public Funds | 1,791.36 | 1,661.69 | | Total | 2,337.81 | 2,165.68 | (2) Fund Management Business Huitianfu Fund, adhering to the "long-term perspective" philosophy, managed approximately RMB 1.26 trillion in total assets, with non-money market public funds exceeding RMB 550 billion, actively expanding into AI and international markets - As of the end of the reporting period, Huitianfu Fund's total assets under management were approximately RMB 1.26 trillion, an increase of over 8.7% from the beginning of the year[68] - Public fund assets, excluding money market funds, exceeded RMB 550 billion, an increase of approximately 11% from the beginning of the year[68] - During the reporting period, 22 public funds were established, with a total issuance size of approximately RMB 11.2 billion[68] - Successfully issued the first domestic REIT for pharmaceutical warehousing and logistics and the first "commercial-to-rental housing" REITs project in China[69] - Huitianfu CSI 300 ETF launched in the Brazilian market, becoming the first ETF Connect product between the SSE and B3[69] - The company was the first to complete private deployment of the DeepSeek series open-source models and successfully launched the "DeepSeek in Cash宝" service[69] (3) Private Equity Investment Funds Orient Capital focused on tech innovation and M&A, expanding its fund-of-funds business in fundraising and targeting quality sectors like semiconductors, robotics & AI, and new energy in investments - Orient Capital focused on tech innovation and M&A[70] - As of the end of the reporting period, it managed 58 funds with a total AUM of RMB 18.91 billion, adding 4 new funds and RMB 1.18 billion in new scale[70] - It invested in 128 projects with a total investment of RMB 7.029 billion, including 5 existing listed companies[70] - During the reporting period, 2 target companies' IPO applications were approved, and 3 target companies had filed IPO applications and were accepted[70] Futures Business Orient Futures actively responded to external challenges, with national futures market trading volume and value increasing by 17.82% and 20.68% respectively in H1 2025, achieving business growth and management optimization - In H1 2025, the national futures market's cumulative trading volume was 4.076 billion lots, with a trading value of RMB 339.73 trillion, increasing by 17.82% and 20.68% year-on-year, respectively[72] - As of end-June, Orient Futures ranked third in brokered trading volume market share and client equity scale, and fourth in net profit[72] - Orient Futures accelerated its overseas expansion, providing personalized hedging and investment solutions for global clients[73] - It promoted financial technology to empower industry services, relying on four major fintech innovation platforms, including the Fanwei Intelligent Investment Research Platform and Orient Swift Extreme Trading System[73] Investment Banking and Alternative Investments The investment banking and alternative investments segment performed actively in H1 2025, with strong bond underwriting, active M&A advisory, and focused "early-stage, small-cap, hard tech" equity investments - The company primarily conducts investment banking through its Investment Banking Management Committee and Fixed Income Business Headquarters, and alternative investments through its wholly-owned subsidiary Orient Innovation[75][83] Investment Banking Investment banking showed new vitality amidst policy reforms, completing 10 equity financing projects and increasing bond underwriting volume by 28.00% to RMB 277.948 billion, ranking 9th - Completed 10 equity financing projects, including 1 IPO and 9 refinancing projects, ranking 6th in issuance volume[76] - Focused on two strategic sectors: technology and energy, with key layouts in new-generation information technology, biomedicine, high-end manufacturing, and new materials[77] - In H1, bond underwriting volume totaled RMB 277.948 billion, a 28.00% increase year-on-year, ranking 9th in the market[78] - Interest rate bond underwriting volume significantly increased by 48.08% year-on-year, with book-entry interest-bearing government bonds, CDB, and ADBC bond underwriting all ranking first among brokers[79] - Actively participated in and underwrote tech innovation bonds issued by several companies, assisting in the successful issuance of CDB's first tech innovation bond[79] - Vigorously developed innovative products such as green bonds, rural revitalization corporate bonds, and small and micro financial bonds[79] Company's Underwriting Details for Various Bonds (RMB 100 million) | Transaction Item | H1 2025 Underwriting Count | H1 2025 Underwriting Amount | H1 2024 Underwriting Count | H1 2024 Underwriting Amount | | :--- | :--- | :--- | :--- | :--- | | Corporate Bonds | 195 | 603.40 | 172 | 577.69 | | Enterprise Bonds | 0 | 0 | 2 | 3.77 | | Financial Bonds | 50 | 482.76 | 23 | 221.12 | | Asset-Backed Securities | 24 | 50.67 | 45 | 61.28 | | Non-Financial Enterprise Debt Financing Instruments | 97 | 241.97 | 91 | 238.80 | | Local Government Bonds | 91 | 128.30 | 77 | 171.29 | | Total | 457 | 1,507.09 | 410 | 1,273.95 | - Actively responded to policy calls, highly valuing M&A financial advisory business, participating in the Guotai Haitong absorption merger project (the largest A+H dual-market absorption merger in China's capital market history)[81] - Focused on tech M&A, assisting in the progress or completion of projects such as Sci-Tech Innovation Board company Sanyou Medical's acquisition of Shuimu Tianpeng[81] Alternative Investments Orient Innovation dynamically optimized asset allocation under a prudent approach, enhancing income stability, with equity investment focusing on "early-stage, small-cap, hard tech" and special asset investments progressing steadily - Orient Innovation's equity investment had 105 existing projects with a total scale of RMB 4.39 billion[83] - Cumulatively participated in 10 STAR Market follow-on investment projects, investing RMB 549 million[83] - Special asset investment business had 31 existing projects with a total scale of RMB 2.271 billion[83] Institutional and Sales & Trading The institutional and sales & trading segment performed steadily in H1 2025, with strong contributions from equity proprietary trading, significant growth in carbon finance, and leading positions in bond market-making - The company primarily conducts equity and non-equity proprietary trading through its Securities Investment Business Headquarters and Fixed Income Business Headquarters, client-driven business through its Financial Derivatives Headquarters and Fixed Income Business Headquarters, market-making through its Securities Investment Business Headquarters, Financial Derivatives Business Headquarters, and Fixed Income Business Headquarters, securities research services through its Securities Research Institute, and custody business through its Custody Business Headquarters[85][88][90][94][96] Proprietary Trading Proprietary trading strengthened its "multi-asset, multi-strategy, all-weather" approach amidst market volatility, with equity proprietary trading contributing well and non-equity proprietary trading showing steady growth and significant increases in interest rate swap and carbon finance trading volumes - Equity proprietary trading strengthened its “multi-asset, multi-strategy, all-weather” approach, achieving good performance contributions[85] - Non-equity proprietary trading saw interest rate swap trading volume increase by 221.32% year-on-year, and non-equity ETF trading volume increase by 158% year-on-year[86] - Carbon finance innovation business trading volume increased by nearly 5 times year-on-year[86] - The company's self-developed Super Investment Management Platform (SIMP) has achieved full asset strategy pricing and automated trading, significantly improving investment and trading efficiency[86] Client-Driven Business Client-driven business continued to develop amidst industry standardization and increased competition, with OTC options and total return swaps showing significant trading volumes, and FICC client-driven revenue increasing - OTC option business trading volume was RMB 5.963 billion[88] - Total return swap business trading volume was RMB 21.174 billion, a 22.33% increase year-on-year[89] - FICC client-driven revenue and its proportion further increased, achieving breakthroughs in customized financial institution services[89] Market Making Business Market-making business deepened in equities, providing services for STAR Market, NEEQ, and BSE small and medium-sized enterprises, earning an A-rating as a STAR Market stock market maker from the SSE, and maintaining a leading position in bond market-making - The company provided market-making services for 10 STAR Market individual stocks, receiving an A-rating as a STAR Market stock market maker from the SSE[91] - Equity option trading volume ranked among the top in the industry, with all product ratings generally maintaining AA-level[91] - Fund market-making product count reached over 310, an increase of over 29% from the end of the previous year[92] - Market-making for financial bonds of the three policy banks continued to rank among the top two in the industry; SSE bond market-making for interest rate bonds and credit bonds ranked first and fourth, respectively[92] - During the reporting period, market-making was conducted for 17 bond ETFs and 1 gold ETF, with trading volume increasing by 158% year-on-year[93] - Provided market-making quotes for 174 tech innovation bonds, nearly double the number from the same period last year, and created the "Orient Securities Yangtze River Delta Tech Innovation Bond Basket" and "Orient Securities CDB Tech Innovation Bond Basket"[93] Research Services The Securities Research Institute comprehensively enhanced its research capabilities and quality, building a research system with macro as the guide, strategy as the core, and industry/company as the foundation, achieving RMB 128 million in public fund commission revenue - During the reporting period, the company published a total of 832 research reports and provided 9,548 online and offline research roadshows for institutional clients[95] - Achieved public fund commission (including special accounts, social security, and annuity seats) revenue of RMB 128 million, with public fund trading volume accounting for 2.26%[95] Custody Business Custody business continuously improved its process system, deepened internal group synergy, built a classified and tiered service system, and enhanced standardized and personalized service capabilities, with outsourced securities product custody scale increasing by 8% - As of the end of the reporting period, the company's outsourced securities product custody scale increased by 8% from the beginning of the year, with business developing steadily[97] International and Other Businesses International business, conducted through Orient Financial Holdings, Orient International and its subsidiaries, and Orient Futures Singapore subsidiary, showed "steady progress and dual improvement in quality and efficiency" amidst Hong Kong's economic recovery - Hong Kong subsidiaries' overall operations showed a positive trend of “steady progress and dual improvement in quality and efficiency,” with intermediary business becoming the main growth engine[98] - Custody client assets increased by 25% from the beginning of the year, and Hong Kong stock trading volume doubled year-on-year[98] - Asset management business scale increased by 14%, and was approved by the Hong Kong SFC to advise professional investors on virtual assets[99] - Investment banking's integrated domestic and international model achieved significant results, with bond investment banking completing 45 underwriting projects and total underwriting volume increasing by 2 times year-on-year; equity investment banking completed the IPO sponsorship of “Auntie's Tea” in Hong Kong, with Hong Kong IPO underwriting volume increasing by 4.5 times year-on-year[99] - Orient Futures Singapore subsidiary actively promoted international expansion, developing brokerage business in Southeast Asia, South America, and parts of Europe[99] Analysis of Core Competencies The company's core competencies lie in its excellent Party building culture, unique shareholder resources (Shenergy Group background), long-term brand advantages (asset management, public funds, fixed income, futures), professional talent team, and effective compliance and risk control system, all supporting its high-quality development - Excellent Party building culture: The only securities firm Party committee nationwide to be awarded “National Advanced Grassroots Party Organization” by the Organization Department of the CPC Central Committee[101] - Unique shareholder resources: Major shareholder Shenergy Group's energy background helps the company build an “energy investment bank, green investment bank”[101] - Long-term brand advantages: Leading positions in asset management (“Orient Red” brand), public funds (Huitianfu Fund), fixed income (interest rate bond underwriting, bond market making), and futures brokerage (fintech application)[102] - Professional talent team: Firmly advancing the “talent-driven company” strategy, building a financial talent team with “purity, professionalism, and combat effectiveness”[103] - Effective compliance and risk control: Adhering to “compliance-first, risk-based,” continuously rated A-class in securities firm classification for 16 consecutive years (AA-class for 4 consecutive years), and included in the “white list”[103] Key Operating Performance In H1 2025, the company's total assets were RMB 437.358 billion, equity attributable to shareholders RMB 84.832 billion, and parent company net capital RMB 57.481 billion, all increasing from the end of the previous year - As of the end of the reporting period, the company's total assets were RMB 437.358 billion, a 4.70% increase from the end of the previous year[104] - Equity attributable to parent company shareholders was RMB 84.832 billion, a 4.22% increase from the end of the previous year[104] - Parent company net capital was RMB 57.481 billion, a 6.75% increase from the end of the previous year[104] - During the reporting period, the company achieved net profit attributable to parent company shareholders of RMB 3.463 billion, a 64.02% increase year-on-year[104] - Achieved revenue and other income of RMB 12.325 billion, a 26.72% increase year-on-year[104] Segment Revenue and Profit Margin (RMB '000) | Segment | Segment Revenue and Other Income | Segment Expenses | Profit Margin (%) | YoY Change in Segment Revenue and Other Income (%) | YoY Change in Segment Expenses (%) | YoY Change in Profit Margin (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wealth and Asset Management | 5,052,448 | 4,338,381 | 15.68 | 15.53 | (1.46) | Increase of 10.90 | | Investment Banking and Alternative Investments | 992,555 | 401,781 | 65.30 | 33.42 | (37.54) | Increase of 50.61 | | Institutional and Sales & Trading | 5,055,255 | 2,225,288 | 55.98 | 29.89 | 7.85 | Increase of 9.00 | | International Business and Others | 2,450,635 | 2,623,761 | 1.34 | (28.20) | 23.73 | Decrease of 35.65 | - Changes in revenue and other income were primarily due to year-on-year increases in investment gains from proprietary trading, and fee income from brokerage and investment banking, as well as a year-on-year decrease in expenses such as credit impairment losses[108] - Commission and fee income was RMB 5.129 billion, accounting for 41.62% of total revenue, an increase of 14.94%[109] - Net investment gains were RMB 4.020 billion, accounting for 32.62% of total revenue, an increase of 76.69%[110] Revenue, Other Income and Gains Structure (RMB '000) | Item | Jan-Jun 2025 Amount | Jan-Jun 2025 Structure (%) | Jan-Jun 2024 Amount | Jan-Jun 2024 Structure (%) | Change in Amount | Change in Percentage (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commission and Fee Income | 5,129,012 | 41.62 | 4,462,488 | 45.88 | 666,524 | 14.94 | | Interest Income | 2,765,256 | 22.43 | 2,776,347 | 28.55 | (11,091) | -0.40 | | Net Investment Gains | 4,020,355 | 32.62 | 2,275,382 | 23.40 | 1,744,973 | 76.69 | | Other Income and Gains | 410,008 | 3.33 | 211,505 | 2.17 | 198,503 | 93.85 | | Total Revenue and Other Income | 12,324,631 | 100.00 | 9,725,722 | 100.00 | 2,598,909 | 26.72 | - Total expenses were RMB 8.373 billion, a 9.03% increase year-on-year, primarily due to increases in employee costs, interest expenses, and commission and fee expenses[113] - Credit impairment losses were RMB -0.004 billion, mainly due to a decrease in credit impairment losses related to stock pledge repurchase business[113] Total Expenses Structure (RMB '000) | Item | Jan-Jun 2025 | Jan-Jun 2024 | Change in Amount | Change in Percentage (%) | | :--- | :--- | :--- | :--- | :--- | | Employee Costs | 2,477,036 | 1,877,911 | 599,125 | 31.90 | | Interest Expenses | 2,303,021 | 2,082,326 | 220,695 | 10.60 | | Commission and Fee Expenses | 2,242,901 | 1,981,346 | 261,555 | 13.20 | | Depreciation and Amortization | 391,226 | 403,693 | (12,467) | -3.09 | | Other Expenses | 961,873 | 1,023,106 | (61,233) | -5.99 | | Credit Impairment Losses | (3,765) | 312,138 | (315,903) | -101.21 | | Other Impairment Losses | 271 | (1,115) | 1,386 | Not applicable | | Total | 8,372,563 | 7,679,405 | 693,158 | 9.03 | - Net decrease in cash and cash equivalents was RMB 0.047 billion[116] - Net cash used in operating activities was RMB 12.844 billion, primarily due to an increase in financial assets at fair value through profit or loss and derivative financial assets[117] - Net cash generated from investing activities was RMB 13.973 billion, primarily due to net cash inflow from investments and disposal of financial investments[117] - Net cash used in financing activities was RMB 1.176 billion, primarily due to payment of interest on bonds, short-term payables, and borrowings, as well as dividends[117] - As of the end of the reporting period, the Group's total assets were RMB 437.358 billion, total liabilities RMB 352.523 billion, and total equity RMB 84.835 billion[118] - Total assets increased by 4.70%, mainly due to increases in financial assets at fair value through profit or loss and equity instruments at fair value through other comprehensive income[123] - Total liabilities increased by 4.81%, and after deducting accounts payable to brokerage clients, the asset-liability ratio was 73.25%[125] Borrowings and Bond Financing Details (RMB '000) | Item | Jun 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Issued Debt Securities | 59,190,632 | 60,734,318 | | Borrowings | 1,748,727 | 1,549,417 | | Short-term Debt Instruments | 4,130,895 | 5,678,905 | | Funds Borrowed | 29,327,263 | 39,194,625 | | Total | 94,397,517 | 107,157,265 | - The Group's investment in associates was RMB 6.060 billion, a 1.11% decrease from the end of the previous year, mainly due to declared dividends and net decrease in investments by associates, partially offset by investment income recognized under the equity method[128] - During the reporting period, the company had no significant equity or non-equity investments, and no future plans for major investments or capital asset purchases[131] Key Subsidiary Financial Data (RMB 100 million) | Company Name | Company Type | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Orient Futures | Wholly-owned subsidiary | 48 | 952.34 | 63.88 | 8.15 | 3.22 | 2.63 | | Orient Capital | Wholly-owned subsidiary | 40 | 43.88 | 43.26 | 0.74 | 0.37 | 0.33 | | Orient Asset Management | Wholly-owned subsidiary | 3 | 49.15 | 43.01 | 6.67 | 2.38 | 1.99 | | Orient Innovation | Wholly-owned subsidiary | 75 | 91.07 | 88.31 | 3.23 | 2.80 | 2.23 | | Orient Financial Holdings | Wholly-owned subsidiary | 27.54 | 142.05 | 12.59 | 2.30 | 1.13 | 1.02 | - Important associate Huitianfu Fund Management Co., Ltd., in which the company holds a 35.412% equity stake[135] - As of the end of the reporting period, Huitianfu Fund's total assets were RMB 14.682 billion, and net assets were RMB 10.823 billion; in H1 2025, it achieved a net profit of RMB 0.480 billion[135] - The company included certain structured entities in its consolidated scope, totaling 45 as of the end of the reporting period, with a combined net asset amount of RMB 20.993 billion[137] Other Disclosure Matters Company has established a comprehensive risk management system covering market, credit, liquidity, operational, money laundering, technology, and reputation risks, effectively controlling various risks with no major violations - The company has established a comprehensive risk management system covering organizational, business, and risk dimensions, including market risk, credit risk, liquidity risk, operational risk, money laundering and terrorist financing risk, technology risk, and reputation risk[141] Potential Risks Faced The company's comprehensive risk management system covers seven major risks: market, credit, liquidity, operational, money laundering, technology, and reputation, effectively identifying, assessing, controlling, and responding to them - Market risk: Managed through asset-liability allocation, market risk limit system, dynamic stop-loss mechanisms, sensitivity analysis, scenario analysis, and stress testing[144] - As of the end of the reporting period, the company's overall Market Risk VaR (95%, 1-day) was RMB 316 million[146] - Credit risk: Established a credit risk management system for financing parties, counterparties, and issuers, implementing limit management and strengthening control through internal ratings, credit granting management, concentration management, and stress testing[147][148] - Liquidity risk: Continuously improved the liquidity risk management system and internal management framework, with dedicated personnel responsible for dynamic monitoring, early warning, analysis, and reporting, ensuring liquidity coverage ratio and net stable funding ratio continuously meet regulatory requirements[150][151](index=151&type=chunk] - Operational risk: Continuously improved the operational risk management system, forming an institutional management framework centered on the “Operational Risk Management Measures” and supported by three tool guidelines, establishing an operational risk identification and assessment mechanism[153] - Money laundering and terrorist financing risk: Deeply implemented the new “Anti-Money Laundering Law,” improved anti-money laundering decision-making and coordination mechanisms, strengthened identification and control of high-risk clients, and established a continuous due diligence framework[155] - Technology risk: Established an IT governance system with “Information Technology Governance” as the top-level design, clarifying governance objectives, organizational structure, and mechanisms, and continuously strengthening data security, system operations and maintenance, network security, and emergency management[156][157] - Reputation risk: Strengthened public opinion monitoring, introduced AI disambiguation functions, established a six-in-one incident handling mechanism for monitoring, reporting, response, information release, evaluation, and improvement, and incorporated staff reputation into human resource management[159][162] Explanation of Non-Disclosure According to Standards The company did not disclose details of its proprietary securities investments due to commercial confidentiality, but the overall situation has been disclosed in relevant sections - Details of proprietary securities investments were not disclosed due to commercial confidentiality, but the overall situation has been disclosed in the report[163] Section 4 Corporate Governance, Environment and Society This section details the company's corporate governance structure, changes in key personnel, employee policies, training, and efforts in social responsibility and rural revitalization Changes in Directors, Supervisors, and Senior Management During the reporting period, Mr. Xie Weiqing resigned from his positions as non-executive director and member of the Board's Audit Committee due to work adjustments - Mr. Xie Weiqing resigned from his positions as non-executive director and member of the Board's Audit Committee on July 18, 2025[165] Directors, Supervisors and Other Information The company's directors and supervisors strictly adhered to the "Model Code" for securities transactions, with no violations found, and no service contracts with directors or supervisors that would expire or be terminable within one year - All directors and supervisors strictly complied with the “Model Code” for company securities transactions, with no violations found[166] - Mr. Lu Weiming no longer serves as a director of Orient Financial Holdings (Hong Kong) Limited, and now serves as Chairman of Huitianfu Fund Management Co., Ltd[167] - Mr. Lu Dayin no longer concurrently serves as the company's Chief Information Officer, and now serves as Chairman of Orient Financial Holdings (Hong Kong) Limited[167] - Changes occurred in the concurrent positions of Mr. Xie Weiqing, Mr. Ren Zhixiang, Mr. Wu Hong, Ms. Du Xinhong, Mr. Shen Guangjun, and Ms. Ding Yan[171] - The company has not entered into any service contracts with any director or supervisor that would expire or be terminable by the employer within one year[170] Employees and Remuneration Policy As of June 30, 2025, the company had 8,082 employees, implementing a market-oriented, performance-driven remuneration system closely linked to risk management, and providing comprehensive employee benefits - As of June 30, 2025, the company had 8,082 employees (including brokers)[172] - The company implements a market-oriented, performance-driven remuneration system, closely integrated with risk management[172] - Professional ethics, integrity, compliance and risk control effectiveness, social responsibility fulfillment, client service level, and long-term shareholder interests are incorporated into remuneration management[173] - The company has established various social insurances, housing provident funds, enterprise annuity schemes, and supplementary medical insurance schemes for employees[173] Training Programs The company conducts diverse training programs, focusing on political training for cadres, "Orient Spark" internal trainer development, and "Orient Forum" exchange and sharing, to enhance cadres' political literacy and performance capabilities - The company conducts diverse training programs, focusing on political training for cadres, “Orient Spark” internal trainer development, and “Orient Forum” exchange and sharing brands[174] Other Corporate Governance Matters The company strictly adheres to laws and regulations of its listing venues, continuously improving corporate governance to form a "three meetings and one layer" governance structure with clear responsibilities, effective checks and balances, and scientific decision-making - The company strictly complies with laws and regulations of its domestic and overseas listing venues, continuously improving corporate governance, forming a governance structure with clear responsibilities, effective checks and balances, and scientific decision-making[175] - During the reporting period, the “Articles of Association” were revised, and governance systems such as the “Market Value Management System” and “Board of Directors Supervision Work Management Measures” were formulated[176] - 1 general meeting, 5 board meetings, and 2 supervisory committee meetings were held, along with multiple committee meetings, all conducted legally and effectively[176] - The company's Board of Directors consists of 15 directors, including 3 executive directors, 6 non-executive directors, 5 independent non-executive directors, and 1 employee director[178] - The Board has established a Strategy and Development Committee, Audit Committee, Compliance and Risk Management Committee, and Remuneration and Nomination Committee, all operating effectively[178] - The company's Supervisory Committee consists of 7 supervisors, including 3 employee representative supervisors and 4 shareholder representative supervisors, overseeing the company's financial affairs, and the performance of the Board and senior management[179] - Senior management operates legally and compliantly in accordance with laws, regulations, and Board authorization[180] - The company highly values investor relations management, adhering to the philosophy of “sincerity, professionalism, and compliance,” and has established multi-dimensional communication channels[181] - In H1 2025, the company held 2 earnings briefings, 2 analyst conferences, participated in 19 broker strategy conferences, and hosted 11 on-site and online research activities, covering 279 domestic and international analysts and institutional investors[182] - Awarded “Best Practice in Investor Relations Management for Listed Companies” by the China Association for Public Companies[182] - The company diligently performs information disclosure, strictly adhering to laws and regulations of its domestic and overseas listing venues to disclose company information truthfully, accurately, completely, timely, and fairly[186] Profit Distribution or Capital Reserve Conversion Plan The company's board has approved the 2025 interim profit distribution plan, proposing a cash dividend of RMB 1.20 (tax inclusive) per 10 shares to A-share and H-share holders, totaling approximately RMB 1.012 billion, representing 29.23% of the net profit attributable to parent company shareholders for H1 2025 Interim Profit Distribution Plan | Indicator | Amount/Ratio | | :--- | :--- | | Distribution or Conversion | Yes | | Dividend per 10 shares (RMB) (tax inclusive) | 1.20 | | Total proposed cash dividend | RMB 1,012,211,857.32 | | % of H1 2025 net profit attributable to parent company shareholders (consolidated) | 29.23% | - This profit distribution plan does not require shareholder approval, and the company will distribute it within two months from the date of the Board meeting[189] Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company implemented an H-share employee stock ownership plan in 2020, which expired and terminated on July 12, 2025, with no other incentive measures existing during the reporting period - The company implemented an H-share employee stock ownership plan in 2020, with 3,588 participants and a total raised capital of RMB 316.657 million[190][192] - The plan expired and terminated on July 12, 2025, and no longer holds the company's H-shares[193] - During the reporting period, the company had no other incentive measures[198] Consolidating Poverty Alleviation Achievements and Rural Revitalization Efforts During the reporting period, the company actively responded to national calls, continuously focusing on industrial assistance, public welfare assistance, and consumption assistance, deeply advancing the consolidation of poverty alleviation achievements and rural revitalization efforts - The company and its subsidiaries signed pairing assistance agreements with 50 regions, continuously contributing to rural revitalization[199] - During the reporting period, a total of approximately RMB 2.3459 million was invested in 21 projects, including industrial assistance, financial assistance, public welfare assistance, consumption assistance, intellectual assistance, and cultural assistance[199] Section 5 Significant Matters This section details the company's fulfillment of commitments, major litigation, regulatory actions, related-party transactions, significant contracts, and other important post-reporting period events Fulfillment of Commitments The company's actual controller, Shenergy Group, strictly fulfilled its commitments to avoid horizontal competition and regulate related-party transactions during the reporting period, ensuring the company's operational independence and fairness - Shenergy Group has issued a “Commitment Letter to Avoid Horizontal Competition” to the company, pledging not to engage in any business that competes with the company or its subsidiaries[200] - Shenergy Group committed to minimizing and regulating related-party