Capital Securities Co.LTD(SH:601136)2023-08-24 16:00Capital Structure and Financial Performance - The registered capital increased to CNY 2,733,333,800 as of June 30, 2023, compared to CNY 2,460,000,000 at the end of the previous year[17]. - The net capital decreased to CNY 10,657,069,965.49 as of June 30, 2023, down from CNY 11,392,197,418.15 at the end of the previous year, representing a decline of approximately 6.43%[17]. - The company did not propose any profit distribution plan or capital reserve transfer to increase share capital during the reporting period[5]. - The company's operating revenue for the first half of 2023 reached ¥850,010,555.37, representing a 12.08% increase compared to ¥758,398,300.70 in the same period of 2022[35]. - The net profit attributable to shareholders of the parent company was ¥275,030,597.87, up 13.46% from ¥242,394,910.08 year-on-year[35]. - The total assets as of June 30, 2023, amounted to ¥41,771,224,497.41, reflecting a 4.90% increase from ¥39,820,575,017.37 at the end of 2022[36]. - The total liabilities increased by 7.69% to ¥29,841,932,856.06 from ¥27,709,756,669.39 at the end of 2022[36]. - The total equity attributable to shareholders of the parent company decreased by 1.50% to ¥11,913,747,651.58 from ¥12,095,234,720.63 at the end of 2022[36]. - The company's cash and cash equivalents decreased by 25.98% to ¥4,773,485,508.65 from ¥6,449,031,455.18[46]. - The company's interest income turned negative at ¥-49,798,364.62, a decline of 379.05% from ¥17,845,795.53 in the previous year[46]. - The company's investment income decreased by 29.78% to ¥342,942,891.02 from ¥488,397,044.27 year-on-year[46]. - The company's short-term financing payables surged by 72.00% to ¥2,978,041,098.20 from ¥1,731,399,911.56[46]. - The company reported a significant increase in accounts receivable, which rose by 220.38% to ¥777,147,253.44 from ¥242,571,860.63[46]. - The company's net profit attributable to shareholders after deducting non-recurring gains and losses for the first half of 2023 was ¥273,281,606.22, representing a 17.67% increase compared to ¥232,237,687.92 in the same period last year[195]. - The asset-liability ratio increased to 66.76% at the end of the reporting period, up from 64.67% at the end of the previous year, reflecting a 3.24% rise[195]. - The company's cash interest coverage ratio was reported at -22.6061, a significant decrease from -14.9182, primarily due to a reduction in net cash flow from operating activities[195]. - The company's total liabilities amounted to ¥29,841,932,856.06, an increase from ¥27,709,756,669.39 at the end of the previous year[199]. - The company's current ratio was 1.4439, slightly down from 1.4808 at the end of the previous year, indicating a 2.49% decrease[195]. - The company's EBITDA interest coverage ratio decreased to 1.9815 from 2.0654, reflecting a 4.06% decline[195]. - The company has no changes in its debt repayment plans or other debt security measures during the reporting period, and all measures have been effectively executed[193]. Risk Management and Compliance - The company has established an effective internal control system and risk management framework to mitigate various risks, including market, credit, liquidity, operational, compliance, reputational, and information technology risks[8]. - The company emphasizes the importance of risk awareness in its forward-looking statements, advising investors to be cautious of investment risks[6]. - The company faces various risks including market risk, credit risk, liquidity risk, operational risk, compliance risk, reputational risk, and information technology risk[105]. - The company has implemented a diversified investment strategy to manage market risks associated with equity securities, including the use of stock index futures for hedging[107]. - Credit risk management focuses on high credit-rated products, with a strategy to monitor and control risks in fixed income investment transactions[108]. - The company has established a liquidity risk monitoring system centered on liquidity coverage ratio and net stable funding ratio, with daily monitoring to maintain sufficient liquidity asset reserves[109]. - During the reporting period, all liquidity indicators met regulatory standards, and no liquidity risk events occurred[110]. - The company has implemented a comprehensive risk management system, including 29 risk management policies covering various types of risks such as credit, market, and operational risks[117]. - The risk management organizational structure consists of a four-tier system, with the board of directors being the highest decision-making body responsible for overall risk management[119]. - The company has not experienced any significant operational risk events during the reporting period, thanks to a robust internal control policy and procedures[111]. - The company has developed a liquidity risk management emergency plan to effectively address liquidity risk events and minimize potential harm[110]. - The company has enhanced its compliance management system, focusing on training and optimizing compliance assessment indicators across all departments[112]. - The company has made significant investments in information technology to improve system stability and data security, including the completion of domestic encryption modifications for its online trading systems[115]. - The company has established a reputation risk management mechanism that operates smoothly, with no major reputation risk events reported during the period[114]. - The company conducts regular liquidity risk stress tests to ensure it can meet liquidity needs under pressure scenarios[109]. - The company has established a comprehensive risk management system, focusing on reducing operational and procedural risks to enhance overall operational efficiency[124]. - The risk management department is led by the Chief Risk Officer and is responsible for monitoring, assessing, and reporting the company's overall risk levels[120]. - The company has implemented a risk control indicator system centered on net capital and liquidity, with early warning standards set at 120% for minimum requirements and 80% for maximum limits[124]. - The company has developed a professional risk management talent pool, ensuring that at least 2% of headquarters staff have over three years of relevant experience[122]. - The company has optimized various risk management systems, including the bond trading monitoring system and credit risk management system, to enhance risk identification and response capabilities[125]. - The company has set annual risk limits totaling over 100 items, which are distributed across business lines and departments to ensure risk preferences are integrated into operational decisions[124]. - The company actively participates in project initiation reviews and collaborates with business departments to establish risk control mechanisms[126]. - The company has conducted stress tests and other assessments to evaluate various risks and has organized effective responses to any risk events that occur[126]. Regulatory Compliance and Governance - The company held its annual general meeting on June 20, 2023, where multiple resolutions regarding the 2022 annual report and financial statements were approved[129]. - There have been changes in the board of directors, with two directors resigning due to personal work adjustments[131]. - The company did not propose any profit distribution or capital reserve fund transfer for the half-year period[133]. - The company strictly adheres to environmental protection laws and has not faced any administrative penalties related to environmental issues during the reporting period[136]. - The company organized activities for environmental protection, including tree planting events, with over 60 participants contributing to local green initiatives[137]. - The company implemented measures to reduce carbon emissions, such as energy management in office areas and promoting paperless operations[138]. - The company played a leading role in issuing the first publicly offered rural revitalization corporate bond in Guangxi, which helped alleviate cash flow pressures for local agricultural enterprises[140]. - The company purchased 106,000 yuan worth of consumer assistance products from Xinjiang for employee welfare, supporting local economic development[141]. - The company conducted 15 online teaching sessions for students in Inner Mongolia, benefiting over 800 students and promoting comprehensive development[142]. - The company assisted a weak collective economy village in Beijing, helping it achieve an operational income of 116,400 yuan during the reporting period[143]. - The company received a warning letter from the Beijing Securities Regulatory Commission on March 29, 2023, for insufficient verification of overdue debts related to the issuance of corporate bonds by Beijing Oriental Garden Environment Co., Ltd.[151]. - On May 22, 2023, the company was again issued a warning letter for non-compliance in private asset management business, including inadequate risk assessment and management of research reports[153]. - The company is actively conducting special self-inspection and rectification work to address the issues identified by the regulatory authority[152]. - The company has committed to improving its due diligence system for bond underwriting and enhancing the verification of potential risk events[152]. - The company has implemented compliance accountability for relevant departments and personnel following the regulatory actions[154]. - There were no significant lawsuits or arbitration matters during the reporting period, and no major litigation exceeding RMB 10 million was disclosed[150]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[149]. - The company has made long-term commitments regarding the accuracy of its prospectus and the protection of investor interests[148]. - The company is focused on enhancing internal controls and compliance levels in its asset management and research report operations[154]. Business Operations and Market Presence - The company holds a valid securities and futures business license issued by the China Securities Regulatory Commission on March 8, 2023[18]. - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties during the reporting period[7]. - As of the end of the reporting period, the company has established 17 branches and 49 business departments, with its subsidiary, Shichuang Kyoto Futures, having set up 4 branches[19]. - The company obtained the financing and securities lending trading permission from the Beijing Stock Exchange on February 10, 2023[27]. - On April 7, 2023, the company received the market-oriented securities lending agreement declaration qualification from China Securities Finance Corporation[27]. - Shichuang Kyoto Futures was awarded the "Trading Settlement Membership Certificate" by the China Financial Futures Exchange on May 26, 2023, changing its status from trading member to trading settlement member[27]. - The company holds various qualifications, including online securities commission business qualification and self-operated business participation in stock index futures trading qualification[20]. - The company has qualifications for various financial services, including bond custody and settlement business, and market-making for corporate bonds[23]. - The company is a member of multiple exchanges, including the Shanghai Stock Exchange and Shenzhen Stock Exchange, enhancing its market presence[24]. - The company has been granted qualifications for innovative business trials, such as one-way video verification of investor identity[23]. - The company has a comprehensive range of qualifications for asset management and private fund management through its subsidiaries[25]. - The company is a member of the China Securities Association and has qualifications for various financial instruments, including options and warrants[24]. - The company has expanded its branch network, adding new locations in economically developed regions to strengthen market expansion and customer service[55]. - The company's asset management business generated revenue of 225.60 million yuan, accounting for 26.54% of total revenue[60]. - The scale of the company's private asset management business decreased by 9.01% year-on-year, totaling 6.25 trillion yuan, with single asset management plans down 5.12% and collective plans down 14.72%[62]. - The number of active asset management products reached 585, with a net asset scale of 116.96 billion yuan, reflecting a growth of 9.05% compared to the previous year[64]. - The investment business revenue was 377.13 million yuan, representing a year-on-year increase of 104.02%[67]. - The fixed income investment trading business achieved revenue of 384.58 million yuan, up 6.57% year-on-year[68]. - The company managed 10 private investment funds with a total scale of 3.67 billion yuan, marking a growth of 3.38%[65]. - The public fund management scale of Zhongyou Chuangye Fund reached 72.46 billion yuan, with 89 active products[66]. - The company ranked 5th in the New Third Board market with 77 companies under market making, including 71 in the innovation layer[72]. - The total investment amount for alternative investment projects was 721.77 million yuan, with 86 ongoing projects[73]. - The company emphasized compliance and risk management, enhancing operational efficiency and management levels[63]. - The company's investment banking business generated revenue of 53.56 million yuan, accounting for 6.30% of total revenue[74]. - In the first half of 2023, the number of companies in the A-share market for equity financing increased by 5.99% year-on-year to 407, while the total financing scale decreased by 10.17% to 662.73 billion yuan[75]. - The company completed 119 recommended listing projects and provided ongoing supervision for 108 listed companies, with 23.15% of these being innovative tier companies[77]. - The company acted as the lead underwriter for 27 bonds, with a total underwriting amount of 8.49 billion yuan, ranking 36th in the industry[78]. - Retail and wealth management business revenue reached 193.84 million yuan, representing 22.80% of total revenue[79]. - The number of new customer accounts opened increased by 82.04% year-on-year to 58,900, with trading volume of 268.85 billion yuan in the first half of 2023[81]. - The company's financing and securities lending customer base grew by 4.81% year-on-year, with a financing balance of 1.91 billion yuan and a maintenance guarantee ratio of 282.45%[82]. - The futures brokerage business recorded a transaction amount of 293.38 billion yuan, a year-on-year increase of 9.68%, with total trading volume up 104.92%[83]. Shareholder Structure and Corporate Governance - As of the end of the reporting period, the total number of ordinary shareholders was 58,021[174]. - The top ten shareholders include Beijing Capital Group with 1,551,690,000 shares (56.77%), Beijing Infrastructure Investment Co., Ltd. with 473,080,000 shares (17.31%), and Beijing Energy Group Co., Ltd. with 227,080,000 shares (8.31%)[176]. - The company reported no changes in total shares and capital structure during the reporting period[172]. - The top three shareholders are all state-owned enterprises, indicating a strong government influence in the company's ownership structure[176]. - The company has not disclosed any significant changes in shareholding or shareholder agreements that would affect voting rights or control[179]. - There are no limited shares available for trading as of the reporting date, indicating full liquidity for the major shareholders[180]. - The company is currently in compliance with regulatory requirements for establishing the asset management subsidiary, although there are risks associated with regulatory approval[169]. - The company has not reported any impacts on earnings per share or net assets due to share changes during the reporting period[172]. - The company has not identified any related party transactions among its top shareholders, ensuring independent decision-making[179]. - The company has locked up 1,551,690,000 shares for 36 months starting from December 12, 2025[181]. - Beijing Infrastructure Investment Co., Ltd. has locked up 473,080,000 shares for 36 months starting from December 12, 2025[181]. - Beijing Energy Group Co., Ltd. has locked up 227,080,000 shares for 36 months starting from December 12, 2025[181]. - Urban Power (Beijing) Investment Co., Ltd. has locked up 151,380,000 shares for 12 months starting from December 12, 2023[181]. - Beijing Anpeng Xingye Investment Co., Ltd. has locked up 56,770,000 shares for 12 months starting from December 12, 2023[181]. - The major shareholders, including Beijing Capital Group, Beijing Infrastructure Investment Co., Ltd., and Beijing Energy Group, are controlled by the Beijing State-owned Assets Supervision and Administration Commission but operate independently[181]. - There are no overlapping personnel among the legal representatives, directors, and senior management of the three state-owned shareholders[181]. - The company does not have any known related party relationships among its top five shareholders[181]. - The company is unaware of any other shareholders' related party relationships or whether they are considered concerted actors under the regulations[181]. - The company has not undergone any changes in controlling shareholders or actual controllers during the reporting period[183]. Debt and Credit Management - The company issued a non-public offering of subordinated bonds in 2020, which matured on May 22, 2023, and was fully repaid along with interest on time[190]. - The company maintained a credit rating of AA+ with a stable outlook as of June 16, 2023, according to Dongfang Jincheng International Credit Rating Co., Ltd[192]. - The company’s "21 Shouzheng C1" bond received a credit rating of AAA, while "21 Shouzheng C2" and "22 Shouzheng C1" bonds were rated AA[192]. - The company plans to issue new subordinated bonds with a total amount of CNY 250.96 million, maturing in April 2026, with an annual interest rate of 10.00%[190]. - The company’s previous subordinated bonds had an interest rate of 4.19% and were issued to professional investors[190]. - The company has a mechanism in place for the payment of principal and interest for its bonds, ensuring investor protection[191]. - The company’s bond trading is subject to regulations, and it has measures to address risks associated with bond termination[191]. - The company’s financial strategies include maintaining a stable credit rating to attract investors and ensure market confidence[192]. - The company has successfully navigated the repayment of its previous debt obligations, reinforcing its financial stability[190]. - The company continues to focus on expanding its bond issuance capabilities to support future growth initiatives[190].