2023-08-30 16:00Financial Performance - The company achieved operating revenue of 16.968 billion RMB and net profit attributable to shareholders of 3.830 billion RMB for the first half of 2023[68]. - The company's operating revenue for the first half of 2023 reached ¥16,968,366,973.04, representing a 40.18% increase compared to the same period last year[39]. - The net profit for the first half of 2023 was ¥3,924,731,802.09, a decrease of 12.11% compared to ¥4,465,360,883.37 in the same period last year[45]. - The total comprehensive income for the first half of 2023 was ¥4,720,291,858.73, representing a 4.35% increase year-on-year[45]. - The company reported a 15% increase in total revenue for the first half of 2023, reaching approximately 1.5 billion RMB compared to the same period last year[31]. - The net profit attributable to shareholders of the parent company was ¥3,829,634,781.60, a decrease of 19.51% year-on-year[39]. - The net cash flow from operating activities was negative at ¥10,742,192,791.84, a decline of 162.04% compared to the previous year[39]. - The company's net income from fees and commissions decreased by 18.26% to 3.544 billion RMB compared to the same period in 2022[68]. - The company’s investment income turned positive at 1.926 billion RMB, compared to a loss of 778.81 million RMB in the previous year[68]. - The company’s operating costs rose to 11.80 billion RMB, reflecting an 88.54% increase year-on-year[116]. Risk Management - The company faces significant risks including legal compliance risks, credit risks, market risks, operational risks, liquidity risks, and reputational risks[17]. - The company emphasizes a comprehensive risk management framework, focusing on compliance, risk identification, assessment, monitoring, and response[135]. - The company has established a comprehensive credit risk management system, focusing on risk identification, assessment, measurement, monitoring, reporting, and response[147]. - The company has implemented a diversified investment strategy to control investment scale and adjust risk exposure effectively, mitigating market risks[151]. - The company has established a liquidity risk management framework that includes daily monitoring and analysis of liquidity indicators, ensuring liquidity risks are measurable and controllable[155]. - The company has strengthened its compliance management mechanisms, focusing on key areas such as anti-money laundering and regulatory adherence[141]. - The company has implemented a "risk-based" anti-money laundering and counter-terrorism financing risk management strategy, enhancing its management system and promoting a culture of risk management[142]. - The company has established a three-tier risk control indicator system to dynamically monitor and provide early warnings for potential risks[135]. - The company actively conducts stress tests to evaluate the impact of extreme risks and has developed emergency response plans for significant risk events[135]. - The company's market risk management system utilizes a Value at Risk (VaR) model with a 95% confidence level and a 1-day horizon, maintaining the risk value at less than 0.2% of the company's net assets[152]. Corporate Governance - The board of directors and supervisory board guarantee the truthfulness and completeness of the semi-annual report[14]. - The company has confirmed compliance with the "Standard Code" for securities trading by all directors and supervisors from January 1 to June 30, 2023[189]. - The company has established a corporate annuity plan to provide supplementary pension security for employees[194]. - The company has implemented a performance-oriented compensation system, which includes fixed salary, performance pay, and benefits[194]. - The company has made significant changes in its board and supervisory personnel, with multiple resignations and appointments throughout 2023[190][191]. - The company is committed to maintaining transparency and compliance throughout its leadership transitions, ensuring stakeholder confidence[186]. - The company has established four committees under the board, including the development strategy and ESG management committee, which is chaired by the chairman[200]. - The audit committee has 5 members and is responsible for overseeing internal and external audits, confirming the mid-year performance and financial report as of June 30, 2023[200]. - The company ensures equal rights for all shareholders in accordance with its articles of association and shareholder meeting rules[200]. Strategic Initiatives - The company continues to focus on expanding its market presence and enhancing its product offerings[27]. - The company is actively pursuing new strategies for growth, including potential mergers and acquisitions[27]. - The company is expanding its market presence by entering the North Exchange for margin trading services, which was approved in February 2023[32]. - The company has launched new financial products, including a personal pension fund sales qualification obtained in November 2022, aimed at enhancing its product portfolio[32]. - The company is focusing on risk management strategies, particularly in credit derivatives and interest rate swaps, to mitigate potential financial risks[32]. - The company is committed to enhancing compliance and risk control systems across all business lines, ensuring high-quality development[162]. - The company plans to strengthen its high-end industry leadership function in the investment banking sector and optimize internal and external collaboration mechanisms in the second half of 2023[162]. - The wealth management business accelerated the establishment of a comprehensive service system, enhancing investor protection and building a strategic customer service framework[160]. Market Position and Client Engagement - The company has over 2.3 million clients both domestically and internationally, supported by a wide network of 340 branches in China and international presence in 15 countries[71]. - As of June 2023, the company had 17.77 million wealth management clients, a 4.3% increase from the end of the previous year, with a total asset under custody of 3.16 trillion yuan, up 5.8%[78]. - The company's "e Haitong Finance" APP had over 5.5 million monthly active users, maintaining a leading position in the industry[75]. - In the first half of 2023, the company's new client acquisition increased by 29.3%, with new client assets growing by 193.4%[78]. - The total trading volume for stocks was 6.65 trillion yuan, while fund trading volume reached 1.60 trillion yuan, resulting in a combined trading volume of 8.25 trillion yuan in the first half of 2023[79]. Compliance and Audit - The financial report for the first half of 2023 has not been audited, with opinions provided by PwC and Deloitte[15]. - The company assures the accuracy and completeness of the financial report, with key personnel confirming the report's integrity[15]. - The company did not report any instances of more than half of the directors being unable to guarantee the report's accuracy[16]. - The audit committee reviewed and confirmed the group's mid-year performance and financial report without objections to the accounting policies used[200]. Employee and Talent Development - The company has a total of 12,262 employees, with 6,865 in the parent company and 5,397 in subsidiaries[194]. - The company has focused on talent development through various training programs, including the "Dolphin Plan" for fresh graduates and the "Starfish Plan" for new employees[195]. - The company has implemented a performance-oriented compensation system, which includes fixed salary, performance pay, and benefits[194].