NSC(SH:601990)2020-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 1,319,724,830.83, representing a 31.66% increase compared to CNY 1,002,404,979.62 in the same period last year[24]. - The net profit attributable to shareholders of the parent company reached CNY 524,731,933.73, a 36.70% increase from CNY 383,854,900.18 in the previous year[24]. - The total assets at the end of the reporting period were CNY 42,365,236,548.17, up 17.49% from CNY 36,058,606,742.76 at the end of the previous year[24]. - The total liabilities increased by 24.38% to CNY 30,912,856,856.12 from CNY 24,853,738,942.18 year-over-year[24]. - The basic earnings per share for the first half of 2020 was CNY 0.16, reflecting a 33.33% increase compared to CNY 0.12 in the same period last year[25]. - The weighted average return on equity rose to 4.63%, an increase of 1.07 percentage points from 3.56% in the previous year[25]. - The company's net capital at the end of the reporting period was CNY 9,787,869,119.01, up from CNY 9,666,972,089.34 at the end of the previous year[26]. - The risk coverage ratio improved to 451.23% from 433.97% year-over-year[26]. Business Operations and Services - The company’s business scope includes securities brokerage, investment consulting, and asset management among others[11]. - The company has been granted various qualifications for its business operations, including online securities commission and stock underwriting[11]. - The company obtained qualifications for various financial services, including margin trading and securities lending, in 2012, expanding its business scope significantly[15]. - The company has maintained its membership qualifications with major financial associations, including the Shanghai Stock Exchange and Shenzhen Stock Exchange, ensuring its operational credibility[19]. - The company has been actively expanding its service capabilities, including the approval for conducting private fund comprehensive custody services in 2015[18]. - The company engaged in various financial services including securities brokerage, investment banking, and asset management, contributing to its revenue growth[29]. Risk Management - Nanjing Securities faces significant risks including policy risk, market risk, credit risk, liquidity risk, and operational risk, which are detailed in the report[5]. - The company has established a comprehensive risk management framework covering all departments and subsidiaries, addressing various risk types including policy, credit, liquidity, market, and operational risks[55]. - The company is implementing measures to control policy risks through improved governance and compliance management[57]. - Credit risk is managed by enhancing client credit assessments and implementing transaction counterparty limits[59]. - Liquidity risk is controlled through dynamic monitoring of risk indicators and stress testing mechanisms[59]. - The company has a structured approach to risk management, including a five-tier risk management organization and a risk control indicator system centered on net capital[56]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 201,367[87]. - The top ten unrestricted shareholders held a total of 1,000,000,000 shares, with 南京紫金投资集团有限责任公司 holding 895,380,564 shares, accounting for 27.14%[89][91]. - 南京新工投资集团有限责任公司 held 249,617,964 shares, representing 7.57% of the total shares[91]. - 南京市交通建设投资控股（集团）有限责任公司 owned 209,671,691 shares, which is 6.36% of the total[91]. Corporate Governance - The company appointed Tianheng Certified Public Accountants as the auditor for the 2020 financial report and internal control audit[67]. - The company’s third board of directors consists of 10 non-independent directors and 5 independent directors, reflecting a structured governance approach[95]. - The company has appointed new executives, including Jiang Nian Nan as Chief Engineer and Chief Information Officer, and Liu Ning as Chief Financial Officer[96]. Social Responsibility - The company actively engaged in poverty alleviation efforts, particularly in Tongxin County, Ningxia, contributing to its exit from the poverty list[74]. - The company invested a total of 165,000 RMB in poverty alleviation initiatives during the reporting period[75]. - The company supported two industrial development poverty alleviation projects with an investment of 40,000 RMB[76]. - The company provided financial assistance to 25 impoverished students during the reporting period[76]. Financial Position - The company's total assets as of June 30, 2020, amounted to CNY 42.365 billion, an increase from CNY 36.059 billion at the end of 2019[115]. - The company's total liabilities reached CNY 30.913 billion, up from CNY 24.854 billion at the end of 2019, indicating a growth of 24.83%[114]. - The company's equity attributable to shareholders increased to CNY 11.336 billion as of June 30, 2020, compared to CNY 11.092 billion at the end of 2019, showing a growth of 2.20%[115]. Cash Flow and Financing - The net cash flow from operating activities was a net outflow of CNY 1,745,759,820.26, a significant decrease from a net inflow of CNY 1,693,218,698.39 in the previous year, representing a change of -203.10%[44]. - The net cash flow from financing activities increased to CNY 3,738,894,643.25, up CNY 823,190,849.75 or 28.23% year-on-year, primarily due to increased cash from bond issuance[44]. - The company reported a significant increase in cash and cash equivalents, with a net increase of CNY 1,920,664,490.16, compared to CNY 4,526,050,899.51 in the first half of 2019[124]. Accounting Policies - The company prepares its financial statements based on the going concern assumption, ensuring sufficient operating funds for at least 12 months from the approval date of the financial statements[138]. - The financial statements comply with the requirements of the accounting standards, accurately reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows[140]. - The company utilizes the equity method for accounting for investments in subsidiaries and joint ventures, ensuring proper recognition of assets and liabilities[143]. Investment and Capital Management - The company has allocated 10% of its after-tax profit to statutory reserves after offsetting previous losses, with additional allocations for general risk and trading risk reserves[193]. - The company recognizes that financial assets and liabilities can be offset in the balance sheet if certain legal rights and settlement plans are met[158]. - The company has established methods for determining expected credit losses for receivables and contract assets, aligning with the standards set in the financial instruments section[160][162].