SHCF(SH:600621)2021-08-27 16:00Financial Performance - Total revenue for the first half of 2021 reached ¥947,792,150.12, an increase of 15.65% compared to ¥819,540,389.76 in the same period last year[23]. - Net profit attributable to shareholders of the listed company was ¥178,922,795.04, a decrease of 68.25% from ¥563,487,718.15 in the previous year[23]. - Net profit excluding non-recurring gains and losses increased by 90.96% to ¥156,946,734.49 from ¥82,189,822.62 year-on-year[23]. - Basic earnings per share decreased by 67.92% to ¥0.17 from ¥0.53 in the same period last year[23]. - The weighted average return on net assets decreased by 6.09 percentage points to 2.59% from 8.68% year-on-year[23]. - The significant decline in net profit was primarily due to the previous year's substantial investment income from the disposal of a 2% stake in Morgan Securities[23]. - The company reported a net profit margin improvement, with net profit for the first half of 2021 being ¥4,051,307.61, compared to a net loss in the same period of 2020[138]. - The company's EBITDA decreased by 45.18% to approximately 474.55 million RMB, mainly due to the previous year's gain from the disposal of a subsidiary[120]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at -¥1,332,899,797.01, a decline of 210.27% compared to ¥1,208,734,927.77 in the same period last year[23]. - The company reported a significant increase in cash flow from financing activities, amounting to ¥1,685,832,639.09, compared to -¥173,431,849.90 in the previous year[48]. - The cash outflow for operating activities totaled 3,920,961,530.19 RMB, a decrease from 3,980,994,910.76 RMB in the same period of 2020[147]. - The total cash inflow from investment activities was 493,013,705.83 RMB, up from 148,365,825.57 RMB year-on-year[149]. - Cash interest coverage ratio fell by 174.12% to -7.01, attributed to a reduction in net cash flow from operating activities[120]. Assets and Liabilities - Total assets as of June 30, 2021, were ¥30,883,731,922.26, representing a 13.26% increase from ¥27,266,933,188.69 at the end of 2020[23]. - Total liabilities rose to ¥23,841,126,144.57, compared to ¥20,242,728,750.04, indicating an increase of about 12.9%[130]. - Current liabilities amounted to ¥20,593,292,864.00, an increase from ¥17,271,936,033.44, which is a growth of around 19.5%[130]. - Short-term financing payables surged by 95.35% to ¥3,686,135,334.40, attributed to increased issuance of short-term profit certificates and financing bonds[52]. - The company's debt-to-asset ratio increased by 6.93% to 65.61%, primarily due to an increase in the scale of liabilities[120]. Business Operations and Strategy - The company continues to optimize its business structure, leading to improved operational performance in its securities business[23]. - The company is transitioning its asset management business towards active management, while also expanding its investment banking capabilities[35]. - The company has implemented a comprehensive training system to enhance its financial technology capabilities[36]. - The company plans to expand its market presence and enhance product offerings in the upcoming quarters, focusing on strategic growth initiatives[138]. Market and Economic Conditions - In the first half of 2021, the A-share market saw a 2.52% increase in the Shanghai Composite Index and a 12.96% increase in the ChiNext Index, indicating a recovery in the domestic economy[29]. - The total market trading volume for equity funds increased by 17.70% year-on-year in the first half of 2021, with total assets of securities companies growing by 21.62%[29]. Risk Management - The company faces significant policy risks due to potential changes in macroeconomic regulations and securities industry laws, which could adversely affect operations[64]. - Market risks are heightened due to fluctuations in asset prices, particularly in equity and fixed-income securities, as well as the evolving derivatives market[65]. - Credit risk is concentrated in bond investments and securities derivatives trading, with increasing complexity due to innovative financing activities[68]. - Liquidity risk is a concern as the company needs to manage its financing and asset-liability structure effectively to meet operational demands[69]. Environmental and Social Responsibility - The company emphasizes environmental protection by implementing strict management during the construction of new offices, including dust reduction measures and the use of green materials[76]. - The company has invested in green office furniture and low-carbon facilities as part of its environmental investment strategy, allocating a portion of the total investment in office decoration projects completed in 2021[76]. - The company’s subsidiary, Huaxin Securities, continues to support poverty alleviation and rural revitalization efforts, providing professional assistance in industry and finance[78]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 75,538[103]. - The top ten shareholders held a total of 634,000,000 shares, representing 60.00% of the total shares[107]. - Shanghai Yidian (Group) Co., Ltd. held 361,974,793 shares, accounting for 34.12% of the total shares[107]. - The company has no new strategic investors or changes in major shareholders during the reporting period[108]. Compliance and Governance - The company has committed to maintaining independent operational management and financial systems for Huaxin Securities, ensuring compliance with relevant laws and regulations[86]. - The company has acknowledged historical issues regarding property rights for certain assets and has committed to addressing these issues without holding the listed company liable for any losses[86]. - The company has not reported any significant changes in its financial audit status[89].