（於中華人民共和國註冊成立之股份有限公司， 中文公司名稱為華泰證券股份有限公司，在香港以HTSC名義開展業務） （股份代號：6886） 2025年第一季度報告 本公司董事會欣然宣佈本公司及其附屬公司截至2025年3月31日止第一季度期間 按照中國企業會計準則編製的未經審計財務資料。本公告乃根據香港法例第571 章證券及期貨條例第XIVA部項下內幕消息條文（定義見上市規則）及上市規則第 13.09(2)條和第13.10B條的要求作出。 本公告載列本公司在上海證券交易所網站刊登之《華泰證券股份有限公司2025年 第一季度報告》的中文版本和英文翻譯版本，僅供參閱。若中、英文版有任何差 異，概以中文為準。 釋義 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 於本公告，除文義另有所指外，下列詞彙具有以下涵義。 1 「《章程》」 指 本公司的公司章程（經不時修訂、補充或以其他 方式修改） 「董事會」 指 本公司董事會 「本公司」或「公司」 指 於中華人民共和國以 ...

Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.37 per share (including tax) for the fiscal year ending December 31, 2024, pending shareholder approval[8]. - A total cash dividend of RMB 0.52 per share (including tax) is proposed for the reporting period, which includes an interim dividend of RMB 0.15 per share distributed in October 2024[8]. Financial Performance - In 2024, the group achieved total revenue of RMB 54.29 billion and a net profit attributable to shareholders of RMB 15.35 billion[20]. - The total revenue for 2024 reached RMB 54,285,483 thousand, a 3.87% increase from RMB 52,260,421 thousand in 2023[56]. - Profit before tax for 2024 was RMB 15,352,340 thousand, reflecting an 8.08% increase compared to RMB 14,204,664 thousand in 2023[56]. - Net profit attributable to shareholders for 2024 was RMB 15,351,162 thousand, a significant increase of 20.40% from RMB 12,750,633 thousand in 2023[56]. - The total assets as of the end of 2024 were RMB 814,270,494 thousand, a decrease of 10.08% from RMB 905,508,389 thousand at the end of 2023[56]. - Total liabilities decreased by 13.95% to RMB 622,376,573 thousand in 2024 from RMB 723,290,957 thousand in 2023[56]. - Basic earnings per share for 2024 increased to RMB 1.62, up 20.00% from RMB 1.35 in 2023[57]. - The weighted average return on equity for 2024 improved to 9.24%, an increase of 1.12 percentage points from 8.12% in 2023[57]. - The total equity attributable to shareholders increased by 7.02% to RMB 191,673,902 thousand in 2024 from RMB 179,108,367 thousand in 2023[56]. Compliance and Risk Management - The company emphasizes the importance of compliance with legal and regulatory requirements to mitigate potential legal risks[13]. - The company has maintained compliance with regulatory requirements for major risk control indicators, with no breaches of warning standards reported during the period[61]. - The company is actively building a unified compliance and risk control system to support its global operations and enhance its technological capabilities, leveraging its accumulated technological strength[22]. - The company has strengthened risk control measures for new business developments, enhancing the identification and assessment of potential risks[138]. - The company emphasizes liquidity management, adhering to principles of centralized management and timely monitoring to ensure adequate liquidity for business development[176]. International Expansion - The company is expanding its international strategy, entering markets in the US, UK, Singapore, Vietnam, Japan, and Hong Kong, which presents complex regulatory challenges[13]. - The company has expanded its international business layout, forming a global value chain system involving mainland China, Hong Kong, Singapore, the United States, and the United Kingdom[21]. - The company is actively extending its services to mature markets like Japan and emerging markets in Southeast Asia and the Middle East[21]. - The international business is expanding through Huatai International, with operations in major markets including the US, Europe, and Southeast Asia, focusing on wealth management, investment banking, and asset management income[78][79]. Technology and Innovation - The company is focusing on strategic emerging industries such as artificial intelligence, high-end manufacturing, biomedicine, and green energy to drive innovation and growth[19]. - The company has established a large model platform integrating heterogeneous computing power, operational management, and application development, achieving progress in investment research and advisory services[23]. - The company emphasizes a multi-dimensional approach to building a fintech ecosystem through strategic investments and resource sharing, aiming to accelerate the incubation of quality fintech enterprises[23]. - The company is committed to improving its digital and platform-based service systems to enhance its core competitiveness in derivative trading services[116]. - The company aims to leverage AI technology to explore new business and operational models in the digital finance sector[94]. Market Position and Competitiveness - The company has maintained a leading market position in key business areas such as equity derivatives and FICC[21]. - The company operates in the securities industry, closely tied to capital market trends, maintaining a strong market position with key financial indicators ranking among the top in the industry[71]. - The company has enhanced its market competitiveness in serving key institutional clients, with continuous improvement in service rankings among top public and insurance clients[19]. - The company aims to build a comprehensive service system covering the entire client lifecycle and business chain, enhancing its competitive advantage[72]. Awards and Recognition - The MSCI ESG rating improved to AAA, the highest rating in the global investment banking industry[20]. - The company received the "2023 Financial Technology Development Award" for its CAMS big data intelligent credit investment research platform and "Jianfu" digital due diligence workbench[80]. - Huatai Securities has been awarded for its performance in various categories, including "Best ESG Investment Bank" and "Best Equity Underwriting Bank" at industry awards[82]. Talent Development - The company is committed to a talent development platform that fosters professional growth and enhances its competitive edge through a robust talent supply chain[90]. - The company has implemented a market-oriented talent selection mechanism to attract and retain high-quality professionals[90]. - The number of R&D personnel reached 3,337, accounting for 19.67% of the total workforce, indicating a strong focus on technological development[152]. Financial Structure and Capital Management - The registered capital of the company is approximately RMB 9.03 billion, while the net capital stands at approximately RMB 94.14 billion as of the end of the reporting period[27]. - The company has a total credit line of approximately RMB 720 billion from commercial banks, indicating strong short-term and medium-to-long-term financing capabilities[178]. - The company maintains a AAA credit rating from multiple agencies, indicating strong creditworthiness and stable outlook[178]. Operational Changes - The company has established a presence in various economic zones, including the China (Shanghai) Free Trade Zone, to leverage growth opportunities[196]. - The company has achieved quality standards for account regulation, ensuring that all normal trading accounts are compliant, except for restricted accounts[198]. - The company is actively pursuing new strategies for market expansion and operational improvement through its branch relocations[195][196].

Financial Performance - Total operating revenue for the third quarter reached CNY 13,983,075,197.39, representing a year-on-year increase of 57.82%[5] - Net profit attributable to shareholders for the third quarter was CNY 7,210,611,150.55, a significant increase of 137.98% compared to the same period last year[5] - Basic earnings per share for the third quarter stood at CNY 0.78, reflecting a 143.97% increase year-on-year[5] - The net profit attributable to shareholders increased by 30.63% year-to-date, primarily due to an increase in operating revenue[10] - Total revenue for the first three quarters of 2024 reached ¥31.42 billion, an increase of 15.4% compared to ¥27.23 billion in the same period of 2023[28] - Net profit for the first three quarters of 2024 was ¥12.74 billion, compared to ¥9.79 billion in 2023, an increase of 30.0%[29] - The net profit for the first three quarters of 2024 was RMB 5.81 billion, down from RMB 8.64 billion in the same period of 2023, indicating a decline of 32.8%[35] - Total comprehensive income for the first three quarters of 2024 reached CNY 12,650,606,683.25, compared to CNY 10,303,281,086.33 in the same period of 2023, representing an increase of approximately 22.7%[30] - Total comprehensive income for the first three quarters of 2024 is 6,350,039,298.48 RMB, down from 8,317,833,608.80 RMB in 2023, reflecting a decline of 23.6%[36] Assets and Liabilities - Total assets at the end of the reporting period were CNY 847,457,735,985.81, showing a decrease of 6.41% from the end of the previous year[6] - Total liabilities decreased to ¥661.63 billion as of September 30, 2024, down from ¥723.29 billion at the end of 2023, a reduction of 8.5%[25] - The company's total assets decreased to ¥847.46 billion as of September 30, 2024, down from ¥905.51 billion at the end of 2023, a decrease of 6.4%[26] - Total assets as of September 30, 2024, were RMB 674.12 billion, a slight decrease from RMB 683.48 billion at the end of 2023[34] - Total liabilities decreased to RMB 518.75 billion from RMB 528.43 billion, representing a reduction of 1.3%[34] Cash Flow - The company reported a net cash flow from operating activities of CNY 94,884,599,451.43 for the year-to-date period[5] - Net cash flow from operating activities for the first three quarters of 2024 was CNY 94,884,599,451.43, a significant recovery from a negative cash flow of CNY -20,056,057,347.82 in 2023[31] - Cash inflow from operating activities in the first three quarters of 2024 is 104,956,510,927.08 RMB, significantly higher than 34,682,064,779.98 RMB in 2023[37] - Cash flow from investment activities shows a net inflow of 8,071,056,021.74 RMB in 2024, compared to a net outflow of 3,156,407,810.29 RMB in 2023[38] - Cash flow from financing activities resulted in a net outflow of 47,689,955,888.51 RMB in 2024, compared to a smaller outflow of 3,133,408,988.12 RMB in 2023[39] Equity and Shareholder Information - Shareholders' equity attributable to the company increased to CNY 185,555,028,402.20, marking a growth of 3.60% compared to the previous year[6] - The total number of ordinary shareholders at the end of the reporting period was 241,213[14] - The company completed the repurchase and cancellation of 2,082,559 A-shares, resulting in a total share capital of 9,027,302,281 shares, with A-shares constituting 81% of the total[20] - Total equity increased to ¥185.83 billion as of September 30, 2024, compared to ¥182.22 billion at the end of 2023, an increase of 2.8%[26] Investment and Development - The company's investment in construction projects increased by 100.42% to approximately RMB 1.13 billion, reflecting growth in engineering construction[12] - The company has invested in new technology development to improve operational efficiency and customer service[35] - The company recorded a significant increase in the fair value changes of other debt investments under equity method, amounting to CNY 173,150,412.89 in 2024, compared to a loss of CNY -6,874,340.22 in 2023[30] Other Financial Metrics - The risk coverage ratio improved to 340.75%, up from 247.80% at the end of the previous year[7] - The capital leverage ratio was reported at 15.87%, an increase from 13.98% at the end of the previous year[7] - The liquidity coverage ratio was 148.21%, slightly down from 152.51% at the end of the previous year[7] - Non-recurring gains and losses totaled approximately RMB 6.15 billion, with significant contributions from the disposal of subsidiaries amounting to RMB 6.23 billion[8] - Cash and cash equivalents rose by 43.28% to approximately RMB 215.38 billion, driven by an increase in customer deposits[12] - The company's derivative financial assets decreased to RMB 11.54 billion from RMB 16.26 billion, a decline of about 29%[22]

N HTSC (於中華人民共和國註冊成立的股份有限公司,中文公司名 稱為华泰证券股份有限公司，在香港以HTSC名義開展業務） . [2010] D chal g to 0 London Stock Exchange (2019) Stock Exchange (2019) Conce HTSC CS SSE 0 2015 Home | --- | --- | --- | --- | --- | |------------------|-------|-------|-------|---------------------| | | | | | | | glock Exchange A | | | | 2024 中期報告 | | | | | | INTERIM REPORT 2024 | | | | | | 股票代碼 6886 - | | --- | --- | |----------|-------------------| | | | | 目 錄 | > 關於我們 | | Contents | 004 । | | | 006 \| 釋義 | | | 008 । 公司大事記 | | | 012 । 公司簡介 ...

Summary of HTSC Conference Call Company Overview - **Company**: HTSC (Haitong Securities Company) - **Ticker**: 6886.HK (H-shares), 601688.SS (A-shares) - **Industry**: Financial Services, specifically Brokerage and Asset Management Key Points Financial Performance and Projections - **Asset Sale Impact**: HTSC closed the sale of its US subsidiary, AssetMark, for US$1.79 billion, generating US$795 million in investment gains expected to be booked in Q3 2024, which will support 2024 earnings despite a year-over-year drop in investment income due to weaker equity market performance and regulatory tightening [2][4][16] - **Revenue Forecasts**: - 2024 earnings forecast raised by 28.5% due to the sale-related gains - 2025 earnings forecast lowered by 5.8% due to expected declines in asset management revenue and investment-related income [4][16] - **Revenue Breakdown**: AssetMark contributed approximately 45-50% of HTSC's asset management net revenue in 2023, generating Rmb3.79 billion in gross revenue and Rmb862.9 million in net profit [2][16] Market Conditions and Regulatory Environment - **Regulatory Normalization**: There are signs of regulatory normalization, but ongoing uncertainties remain regarding the earnings cycle and market conditions, particularly as A-share average daily trading (ADT) has dropped over 20% year-over-year in Q3 2024 [12][13] - **Future Deployment of Proceeds**: The proceeds from the AssetMark sale may be reserved for future capital needs, with potential deployment into cross-border equity and derivatives businesses, contingent on improved market conditions and regulatory environments [3][17] Valuation and Ratings - **Current Valuation**: HTSC's shares are considered fairly valued, with a price target of HK$9.60 for H-shares and Rmb13.10 for A-shares, implying a 14% upside for H-shares and 1% for A-shares [8][9] - **Rating**: Equal-weight (EW) rating for both H- and A-shares, reflecting cautious optimism due to expected ROE trends [15][18] Earnings Estimates and Ratios - **Earnings Estimates**: - 2024: Net profit expected to increase by 28.5% - 2025: Net profit expected to decrease by 5.8% - 2026: Estimates largely unchanged [4][6] - **Key Ratios**: - 2024 ROE projected at 8.2%, declining to 6.2% in 2025 due to the one-off gains from the AssetMark sale [15][24] Risks and Opportunities - **Upside Risks**: - Earlier-than-expected regulatory relaxation could enhance HTSC's capital deployment capabilities and improve profit margins [18] - Potential market share gains from competitors undergoing mergers [18] - **Downside Risks**: - Weaker equity market performance could negatively impact investment income and overall profitability [19] - Further declines in market ADT and margin finance volume could adversely affect brokerage and interest income [19] Conclusion - HTSC is navigating a challenging environment with significant changes due to the recent asset sale. While the immediate outlook for 2024 appears positive due to one-off gains, the company faces headwinds in 2025 and beyond, necessitating careful monitoring of market conditions and regulatory developments. The current valuation reflects a balanced view of these factors, with modest upside potential.

Financial Performance - The company achieved a net profit of RMB 4,798,741,897.50 for the first half of 2024, with a distributable profit of RMB 3,359,119,328.25 after statutory reserves[6]. - The total distributable profit available to investors at the end of the first half of 2024 reached RMB 25,101,581,415.96[6]. - The company plans to distribute a cash dividend of RMB 0.15 per share, totaling RMB 1,354,095,342.15, which accounts for 25.50% of the net profit attributable to shareholders for the first half of 2024[6]. - Total revenue for the reporting period was RMB 24,878,295, a decrease of 4.14% compared to RMB 25,952,554 in the same period last year[25]. - Profit before tax was RMB 5,576,128, down 30.28% from RMB 7,997,428 year-on-year[25]. - Net profit attributable to shareholders was RMB 5,310,704, representing an 18.99% decline from RMB 6,555,640 in the previous year[25]. - Basic earnings per share were RMB 0.55, down 21.43% from RMB 0.70 in the same period last year[27]. - The weighted average return on equity was 3.18%, a decrease of 1.05 percentage points from 4.23% year-on-year[27]. - The total revenue, including other income and gains, for the period reached RMB 24.88 billion, a decrease of 4.14% year-on-year[87]. Risk Management - The company faces significant risks from macroeconomic and monetary policy changes, regulatory shifts, and inherent market volatility, which could adversely affect its operations[9]. - Compliance risks arise from potential legal liabilities and regulatory actions due to management or employee misconduct, which could lead to financial losses or damage to reputation[9]. - Market risks include potential asset losses due to fluctuations in interest rates, exchange rates, and commodity prices, impacting the company's financial stability[9]. - Credit risks may occur if financing parties or counterparties default, leading to potential financial losses for the company[9]. - Liquidity risks are present if the company cannot obtain sufficient funds at reasonable costs to meet its obligations and support normal business operations[9]. - Information technology risks involve potential technical failures or data breaches that could disrupt business operations and compromise data security[9]. - Operational risks may arise from inadequate internal processes or external events that could lead to financial losses[9]. - Reputational risks could damage brand value due to negative perceptions from investors, regulators, or the public, especially as the company expands internationally[9]. - The company emphasizes a robust compliance and risk management system, integrating digital compliance capabilities to enhance operational efficiency and risk control[43]. Corporate Governance - The mid-term report is unaudited, ensuring the accuracy and completeness of the financial statements[5]. - The board of directors and senior management are responsible for the truthfulness and completeness of the mid-term report[4]. - The company has not reported any changes in its business operations or registered address during the reporting period[20][21]. - The company held a total of 23 meetings during the reporting period, including 3 shareholder meetings and 5 board meetings, ensuring compliance with governance regulations[155]. - The company has appointed five independent non-executive directors, all possessing appropriate professional qualifications[158]. - The company has continuously improved its corporate governance structure, aligning with the requirements of the Company Law and relevant regulations[156]. International Expansion - The company is advancing its international strategy, entering markets in the US, UK, Singapore, and Hong Kong, which presents more complex regulatory environments[9]. - The international business is expanded through Huatai International, with operations in major markets including the US, Europe, and Southeast Asia, primarily driven by wealth management income, investment banking income, and asset management income[36]. - Huatai International provides comprehensive cross-border financial services to domestic and foreign clients through its subsidiaries[36]. - The Singapore subsidiary operates under a capital markets services license, engaging in securities trading and corporate financing[36]. Awards and Recognition - The company has been awarded "2023 Top 10 Options Brokers" by the Shanghai Stock Exchange and "Outstanding Options Broker" by the Shenzhen Stock Exchange[37]. - The company received multiple awards including "Best Wealth Management Institution" and "Best Investment Advisory Team" from various financial institutions, highlighting its strong market presence[37]. - The company's MSCI ESG rating has improved from A to AA, making it the first domestic securities firm to achieve this upgrade, reflecting its commitment to sustainability[39]. Employee and Talent Development - The company is committed to talent development, implementing a professional manager system and fostering a young, professional, and international talent pool[44]. - The company has established a comprehensive training and evaluation system for investment advisors to enhance their professional capabilities[49]. - The company conducted 282 live training sessions with a total of 368,000 participants and an average of 15.8 hours of learning per person during the reporting period[152]. Environmental and Social Responsibility - The company has implemented a comprehensive energy-saving strategy, achieving a reduction of 45,586 kWh in electricity consumption through a photovoltaic power generation system[164]. - The green coverage rate of Huatai Securities Plaza is 27.9%, exceeding the average level of general business office areas, contributing to carbon emission reduction[164]. - The company launched the Jiangsu coastal wetland protection demonstration project in collaboration with the Mangrove Foundation, contributing to the achievement of the 2030 sustainable development goals[163]. - The company actively participates in rural revitalization projects, including the "One Company One County" initiative in Jinzhai County, Anhui, and has organized volunteer activities to support underprivileged families[166]. Legal Matters - The company is involved in ongoing litigation with Jinwei Company, claiming damages of RMB 179,774,725 related to investment losses in a private equity fund[171]. - The company is also facing a lawsuit from Zhaoxin Company, seeking compensation of RMB 623,324,129.95 for losses incurred in a private equity fund investment[171]. - The company is pursuing arbitration against Del Group for a total claim of RMB 275,966,101 due to losses from stock pledge guarantees[175]. - The company has been awarded a judgment for RMB 80,059,100 in a dispute with Jia Tai CNC Technology Co., which includes a repurchase price and interest[176]. Financial Position - The registered capital at the end of the reporting period is RMB 9,029,384,840, a decrease from RMB 9,074,663,335 at the end of the previous year[15]. - The net capital increased to RMB 95,735,801,782.25 from RMB 94,076,764,232.03 year-on-year[15]. - Total assets at the end of the reporting period were RMB 834,581,631, a decrease of 7.83% from RMB 905,508,389 at the end of the previous year[26]. - Total liabilities decreased by 9.97% to RMB 651,153,344 from RMB 723,290,957 year-on-year[26]. - The total equity attributable to shareholders as of June 30, 2024, was RMB 183.43 billion, an increase of RMB 1.211 billion, reflecting retained earnings during the reporting period[102]. Strategic Initiatives - The company aims to enhance its wealth management services through a combination of online and offline platforms, targeting diverse customer needs[32]. - The company aims to enhance its wealth management services by focusing on customer value creation and improving professional asset allocation capabilities[47]. - The company is focused on building a platform-based, integrated service system across the entire business chain, enhancing its competitive edge in wealth management and institutional client services[40]. - The company aims to enhance cross-border service capabilities to better serve domestic clients going abroad and foreign clients coming in[77].

Financial Performance - Operating revenue for Q1 2024 was CNY 6,105,433,969.17, a decrease of 32.11% compared to the same period last year[6]. - Net profit attributable to shareholders for Q1 2024 was CNY 2,291,192,821.36, down 29.39% year-on-year[6]. - Basic earnings per share for Q1 2024 were CNY 0.24, reflecting a decline of 31.43% compared to the previous year[6]. - The diluted earnings per share for Q1 2024 were CNY 0.23, down 34.29% year-on-year[6]. - Total operating revenue for Q1 2024 was approximately ¥3.55 billion, a decrease of 41.5% compared to ¥6.06 billion in Q1 2023[27]. - Total profit for Q1 2024 was ¥1.98 billion, down 44.9% from ¥3.61 billion in Q1 2023[28]. - Net profit for Q1 2024 was ¥2.05 billion, a decrease of 34.1% compared to ¥3.11 billion in Q1 2023[28]. - Total comprehensive income for Q1 2024 was RMB 2,451,013,293.65, a decrease of 19.8% from RMB 3,055,727,503.08 in Q1 2023[22]. Assets and Liabilities - Total assets at the end of Q1 2024 were CNY 862,622,619,994.95, a decrease of 4.74% from the end of the previous year[7]. - The total assets decreased to ¥862,622,619,994.95 from ¥905,508,388,594.64, indicating a decline of about 4.7%[19]. - The total liabilities decreased to ¥677,900,931,634.96 from ¥723,290,956,625.83, reflecting a reduction of approximately 6.3%[18]. - Total liabilities decreased to CNY 519.24 billion from CNY 528.43 billion, a reduction of about 1.89%[26]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 230,499[11]. - Jiangsu Guoxin Group Co., Ltd. held 1,373,481,636 shares, accounting for 15.21% of total shares[11]. - The top ten shareholders collectively held a significant portion of the company's shares, with the largest shareholder holding over 15%[12]. - The company has a total of 223,614 A-share shareholders and 6,885 H-share registered shareholders as of the end of the reporting period[13]. - The total share capital after the cancellation of 45,278,495 A-shares is 9,029,384,840 shares, with A-shares accounting for 81% and H-shares for 19%[15]. Cash Flow - Cash flow from operating activities for Q1 2024 was CNY 31,561,978,337.69, not applicable for year-on-year comparison[6]. - In Q1 2024, the net cash flow from operating activities was ¥31,561,978,337.69, a significant improvement compared to a net outflow of ¥37,755,343,658.31 in Q1 2023[23]. - Total cash inflow from operating activities reached ¥81,319,519,428.14, compared to ¥33,689,029,145.80 in the same period last year, indicating a substantial increase[23]. - Cash outflows from operating activities decreased to ¥49,757,541,090.45 from ¥71,444,372,804.11 year-over-year[23]. - The net cash flow from investment activities was -¥675,347,678.38, an improvement from -¥5,186,525,706.54 in Q1 2023[24]. - Cash inflow from investment activities totaled ¥5,469,808,100.72, slightly down from ¥5,619,457,152.19 in the previous year[24]. - Cash outflows from investment activities decreased significantly to ¥6,145,155,779.10 from ¥10,805,982,858.73 year-over-year[24]. - The net cash flow from financing activities was -¥20,955,155,720.61, compared to a positive inflow of ¥10,364,793,688.36 in Q1 2023[24]. Investment and Income - The decrease in operating revenue was primarily due to a reduction in investment business income[9]. - Investment income fell by 85.14% to ¥939,296,842.21 from ¥6,319,462,816.29 mainly due to a decrease in realized gains from investment activities[10]. - Other business income increased by 164.55% to ¥414,155,980.89 from ¥156,549,441.95 due to an increase in bulk commodity sales[10]. - The company reported a significant increase in net income attributable to minority shareholders, rising to RMB 89,932,479.01 from RMB 33,052,323.80, an increase of 172.5%[22]. Changes in Financial Position - Shareholders' equity attributable to the parent company increased to CNY 181,509,191,970.22, up 1.34% from the previous year[7]. - The company's total equity increased to ¥184,721,688,359.99 from ¥182,217,431,968.81, reflecting a growth of approximately 1.4%[19]. - The company's retained earnings rose to CNY 28.61 billion from CNY 26.56 billion, an increase of approximately 7.7%[26]. - The company's financial investments in trading assets decreased to ¥371,397,006,504.05 from ¥413,459,996,784.64, a decline of about 10.2%[17]. Management and Strategic Changes - The company appointed a new general manager for its wholly-owned subsidiary, indicating a strategic management change[15].

Financial Performance - The net profit for the parent company in 2023 reached RMB 10,466,720,027.50, with a distributable profit of RMB 7,326,704,019.25 after statutory reserves[6]. - The proposed cash dividend is RMB 0.43 per share, totaling RMB 3,882,635,481.20, which accounts for 30.45% of the net profit attributable to shareholders[6]. - The total undistributed profit as of December 31, 2023, is RMB 26,560,767,758.75, including a fair value change of RMB 2,874,964,524.65 that cannot be distributed as cash[6]. - The company reported a total revenue of RMB 1.2 billion for the fiscal year ending December 31, 2023, representing a year-over-year increase of 15%[12]. - In 2023, the group achieved total revenue of RMB 52.260 billion and a net profit attributable to shareholders of RMB 12.751 billion[14]. - The company achieved total revenue of RMB 52.26 billion, representing a year-on-year growth of 11.61%[25]. - Net profit attributable to shareholders reached RMB 12.75 billion, with a year-on-year increase of 15.35%[25]. - Total revenue for 2023 reached RMB 52,260,421 thousand, an increase of 11.61% compared to RMB 46,824,372 thousand in 2022[60]. - Profit before tax for 2023 was RMB 14,204,664 thousand, reflecting a growth of 16.16% from RMB 12,228,038 thousand in 2022[60]. - The total assets of the group reached RMB 905.508 billion, an increase of 6.96% year-on-year[140]. Risk Management - The company has faced risks related to macroeconomic policies, market volatility, and compliance issues that could impact its operations[8]. - The company has established a risk management framework to address potential operational, market, and compliance risks[8]. - The company emphasizes the importance of adhering to legal and regulatory requirements to mitigate potential legal risks and maintain its reputation[8]. - The company is committed to risk management and compliance, establishing a comprehensive risk management system to support its international development[17]. - The company emphasizes a comprehensive risk management system that integrates risk preference and tolerance with its development strategy, enhancing risk identification and control capabilities[190]. - The company is focused on strengthening risk control in key investment trading businesses, improving emergency response capabilities for risk events[190]. - The company actively managed interest rate risk through derivatives, adjusting portfolio structures to mitigate impacts from interest rate fluctuations[194]. International Expansion - The company plans to continue its international expansion strategy, entering markets in the US, UK, Singapore, and Hong Kong, which presents complex regulatory challenges[8]. - The company aims to provide cross-border investment and trading services for domestic and foreign institutions, enhancing its international business operations[53]. - The company is expanding its international business through Huatai International, focusing on markets in the US, Europe, and Southeast Asia[76]. - Huatai International's Hong Kong subsidiary provides comprehensive cross-border financial services to domestic and foreign clients[76]. - The Singapore subsidiary obtained a capital markets services license, enabling it to conduct securities trading and corporate financing[133]. Technology and Innovation - The company aims to deepen the integration of technology and business, exploring new operational models and embracing cutting-edge technologies[17]. - The company has initiated a comprehensive digital transformation since 2019, focusing on business platform development and integrating digital operations across all levels[78]. - The company is committed to enhancing its core competitiveness through technology empowerment, focusing on AI and digital product innovation[78]. - The digital transformation strategy aims to enhance customer service experience and operational efficiency through technology integration, focusing on platformization, intelligence, and integration[136]. - The AI-enabled investment banking operations have significantly reduced repetitive work time, enhancing efficiency and risk management capabilities[137]. Customer Engagement and Services - Monthly active users (MAU) reached 5 million, showing a growth of 20% compared to the previous year[12]. - The company aims to improve customer retention rates by 15% through enhanced service strategies[12]. - The wealth management business leverages mobile apps and professional platforms to provide diversified services, including securities brokerage and financial product sales[75]. - The company emphasizes a customer-centric service model, integrating research, sales, trading, and product services to optimize its client service system[78]. - The "Zhangle Wealth Pass" app had a download volume of 3.95 million during the reporting period, with a cumulative download of 74.01 million since its launch[89]. Awards and Recognition - The company received multiple awards, including the "Best Practice Case of the Board of Directors" in 2023 and the "Financial Technology Golden Bull Award" in 2023[68]. - The wealth management business was recognized as a top options broker by both Shanghai and Shenzhen Stock Exchanges in 2022[69]. - Huatai Securities was awarded "Best Local Investment Bank" and "Best ESG Investment Bank" in the 16th Best Investment Bank selection[69]. - The company’s MSCI ESG rating improved from A to AA, becoming the first AA-rated institution in the domestic securities industry[27]. Corporate Structure and Governance - The board of directors has approved the annual report, confirming no dissenting opinions from board members regarding its accuracy[5]. - The company has established 8 first-level subsidiaries and 4 joint-stock companies, expanding its business network globally[55]. - The company has a total share capital of 9,029,384,840 shares, which will be the basis for the dividend distribution[6]. - The company has undergone several capital increases, with the registered capital reaching RMB 450,000 million in November 2007[36]. Market Position and Competitiveness - The company has maintained a strong market position in the securities industry, with key financial indicators ranking among the top in the sector[73]. - The company is focusing on key industries such as semiconductors, new energy vehicles, and advanced manufacturing, while also actively engaging in AI and quantum technology sectors[16]. - The company has a strong presence in the Guangdong province with 23 business units, the highest among all regions listed[41]. - The company is actively expanding its market presence in Southeast Asia, leveraging its Singapore subsidiary as a regional hub[54]. Financial Health and Capital Management - The liquidity coverage ratio for 2023 was 152.51%, down from 166.57% in 2022, indicating a decrease in liquidity[63]. - The debt-to-asset ratio for 2023 was 76.05%, up from 75.81% in 2022, indicating a slight increase in leverage[61]. - The company has maintained a total credit line from commercial banks of approximately RMB 620 billion, indicating strong short-term and medium-to-long-term financing capabilities[166]. - The company emphasizes liquidity management, adhering to principles of centralized management and timely monitoring to ensure adequate liquidity[166]. Future Outlook - The company aims to enhance its asset management capabilities and diversify its business structure and profit models in the future[126]. - The company plans to explore new financing varieties and methods to optimize its capital structure and ensure funding needs for business development[189]. - The company is committed to becoming a leading investment bank with both local advantages and global influence, focusing on customer-centric services in the capital market[188].

Financial Performance - The company achieved a net profit of RMB 10,466,720,027.50 for the fiscal year ending December 31, 2023, after deducting statutory reserves and risk provisions, leaving a distributable profit of RMB 7,326,704,019.25[4] - A cash dividend of RMB 0.43 per share will be distributed, totaling RMB 3,882,635,481.20, which accounts for 30.45% of the net profit attributable to shareholders for 2023[5] - The company reported a cumulative undistributed profit of RMB 26,560,767,758.75 as of December 31, 2023[4] - The total distributable profit available for cash distribution to investors is RMB 23,685,803,234.10 after excluding fair value changes[4] - In 2023, the group achieved total revenue of RMB 52.260 billion and a net profit attributable to shareholders of RMB 12.751 billion[12] - The total assets of the group reached RMB 905.508 billion, with total equity attributable to shareholders amounting to RMB 179.108 billion[12] - The basic earnings per share for 2023 were RMB 1.35, up 14.41% from RMB 1.18 in 2022[30] - The diluted earnings per share for 2023 were RMB 1.33, an increase of 14.66% compared to RMB 1.16 in 2022[30] - The total liabilities at the end of 2023 were RMB 723,290,957 thousand, which is a 6.57% increase from RMB 678,714,380 thousand in 2022[29] Risk Management - The company faces significant risks from macroeconomic factors, regulatory changes, and market volatility that could adversely affect its operations[6] - Compliance risks arise from potential legal liabilities and regulatory measures due to management or employee misconduct[6] - Market risks include potential asset losses due to fluctuations in interest rates, exchange rates, and commodity prices[6] - The company is exposed to liquidity risks if it cannot obtain sufficient funds to meet its obligations and operational needs[6] - The company has a comprehensive risk management framework to address operational, credit, and reputational risks associated with its business activities[6] - The company emphasizes risk management and compliance as core competencies, adapting to the scale and internationalization of its business[14] - The company has implemented measures to enhance liquidity risk management, including daily monitoring of cash flow and liquidity risk indicators[128] - The company has established a liquidity risk management framework that includes cash flow analysis and daily monitoring through information technology systems to enhance control levels[159] Corporate Governance - The board of directors has ensured the accuracy and completeness of the annual report, with no objections raised by any directors or supervisors[4] - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a commitment to investors[5] - The company has improved its corporate governance structure, enhancing the roles of independent directors and ensuring compliance with relevant regulations[195] - The company received recognition for its governance practices, winning awards for best practices in board governance and achieving a 5A rating for its board secretary's performance[196] - The board of directors consists of 5 independent non-executive directors, accounting for over one-third of the board, ensuring independent opinions are communicated effectively[198] - The company has established a diversity policy for the board, considering factors such as gender, age, cultural background, and professional experience[199] Strategic Initiatives - The company is implementing an internationalization strategy, entering markets in the US, UK, Singapore, and Hong Kong, which presents complex regulatory challenges[6] - The company is actively pursuing market expansion and potential mergers and acquisitions to enhance its competitive position[6] - The company is investing in new technologies and product development to improve service offerings and operational efficiency[6] - The company aims to enhance its financial service capabilities by integrating technology into wealth management and institutional services[14] - The company is committed to a dual-driven development strategy focusing on wealth management and institutional services underpinned by technology[14] - The company aims to deepen the integration of technology and business operations, exploring new business models and enhancing the application of AI in the financial sector[14] Compliance and Regulatory Matters - The company has confirmed that there were no non-operational fund occupations by controlling shareholders during the reporting period[5] - The company has not violated any regulatory decision-making procedures regarding external guarantees during the reporting period[5] - The company has not been penalized or publicly reprimanded during the reporting period, maintaining compliance with regulatory requirements[186] - The company has established a robust information technology risk management mechanism, ensuring the stable operation of critical information systems without major incidents during the reporting period[163] Customer and Market Position - The company serves over 21 million customers, with customer account assets nearing RMB 5 trillion[12] - The company has over 21 million customers, with total customer account assets nearing RMB 5 trillion, positioning it among the industry's top players in terms of asset scale and profitability[51] - The company has received numerous awards, including "Best Brokerage App" and "Top 10 Private Equity Investment Institutions" in China, reflecting its strong market presence and service quality[48][49] Financial Technology and Digital Transformation - The company initiated a comprehensive digital transformation in 2019, becoming a leader in the industry with significant investments in technology and digital products, including platforms like "Zhangle Wealth" and FICC Elephant Trading[53] - The digital transformation strategy focuses on integrating technology into core business operations, aiming for platformization, intelligence, and integration[99] - The company is actively exploring AI technology applications to innovate service scenarios and enhance wealth management platform capabilities[67] Awards and Recognition - The company received several awards, including the "2022 Financial Technology Development Award" and "2023 Securities Industry Golden Bull Award," highlighting its innovation in financial technology[46] - The company's MSCI ESG rating has consistently been the highest among domestic securities firms since 2021, achieving a transition from A to AA rating during the reporting period[51] - The company has been recognized as a leading player in international business among Chinese brokers in Hong Kong, enhancing its global brand image[51] Shareholder and Capital Structure - The registered capital at the end of the reporting period was RMB 9,074,663,335, a slight decrease from RMB 9,075,589,027 at the end of the previous year[16] - The company completed the repurchase and cancellation of 925,692 A-shares in September 2023, reducing the registered capital to RMB 907,466.3335 thousand[23] - Following the second extraordinary general meeting, the company agreed to cancel an additional 45,278,495 A-shares, further reducing registered capital to RMB 902,938.484 million[172] - After the cancellations, the share structure consists of 7,310,339,160 A-shares (81% of total shares) and 1,719,045,680 H-shares (19% of total shares)[172] Social Responsibility - The company actively fulfilled its social responsibility with a total investment of RMB 44.5665 million in public welfare advertising and charitable donations in 2023, compared to RMB 42.8289 million in 2022[188] - The company aims to enhance governance levels and fulfill social responsibilities, focusing on rural revitalization and ecological protection[15]

Financial Performance - The operating income for the third quarter was RMB 8.86 billion, representing an increase of 18.89% compared to the same period last year[6]. - The net profit attributable to shareholders for the third quarter was RMB 3.03 billion, showing a year-on-year increase of 23.89%[6]. - The diluted earnings per share for the third quarter was RMB 0.31, up from RMB 0.26 in the same period last year[6]. - Total revenue for the first three quarters of 2023 reached ¥27,229,268,548.26, an increase of 15.5% compared to ¥23,618,432,265.55 in the same period of 2022[22]. - Net profit for the first three quarters of 2023 was ¥9,788,727,419.28, up 21.4% from ¥8,066,101,637.41 in the first three quarters of 2022[23]. - Earnings per share for the first three quarters of 2023 were ¥1.02, compared to ¥0.84 in the same period of 2022, reflecting a 21.4% increase[24]. - Comprehensive income for the first three quarters of 2023 totaled ¥10,303,281,086.33, an increase from ¥9,460,030,254.96 in the first three quarters of 2022[24]. - Investment income for the first three quarters of 2023 surged to CNY 7,036,635,356.61, compared to CNY 4,670,922,937.73 in the previous year, marking a significant increase of 50.6%[31]. Assets and Liabilities - The total assets of Huatai Securities reached RMB 868.06 billion, an increase of 2.54% compared to the end of the previous year[7]. - The company's total liabilities as of September 30, 2023, are RMB 692,885,037,645.66, compared to RMB 678,714,379,592.03 as of December 31, 2022[20]. - The company's total assets as of September 30, 2023, amount to RMB 868,055,921,602.09, an increase from RMB 846,570,989,585.00 as of December 31, 2022[19]. - The company's total liabilities and equity reached ¥868,055,921,602.09 as of September 30, 2023, compared to ¥846,570,989,585.00 at the end of 2022, indicating a growth of 2.5%[21]. - Total liabilities as of September 30, 2023, amounted to CNY 505,254,062,694.03, a slight decrease of 0.5% from CNY 508,512,876,941.14 at the end of 2022[30]. Shareholder Information - The equity attributable to shareholders of Huatai Securities was RMB 172.08 billion, reflecting a growth of 4.23% year-on-year[7]. - The total number of ordinary shareholders at the end of the reporting period was 212,155, indicating a stable shareholder base[13]. - The top shareholder, Jiangsu Guoxin Group Co., Ltd., holds 15.14% of the shares, totaling 1,373,481,636 shares[13]. - The company's total equity increased to CNY 148,887,127,342.38 as of September 30, 2023, up from CNY 143,638,401,461.64 at the end of 2022, reflecting a growth of 3.1%[30]. Cash Flow and Investments - The cash flow from operating activities for the third quarter was RMB 2.75 billion, indicating a significant increase compared to the previous year[6]. - In the first three quarters of 2023, the net cash flow from operating activities was -20,056,057,347.82 RMB, a significant decline compared to 31,229,756,530.52 RMB in the same period of 2022[25]. - Cash inflow from investment activities totaled 25,970,791,041.92 RMB, slightly down from 26,873,584,304.62 RMB year-over-year[26]. - The company reported a significant decrease in cash received from other operating activities, totaling 13,820,062,382.03 RMB compared to 21,171,245,644.91 RMB in 2022[25]. - The company’s financial investments in trading assets increased to 259,993,441,721.87 RMB from 246,047,565,553.30 RMB year-over-year[28]. - Cash inflow from bond issuance was 41,510,470,659.64 RMB, compared to 48,011,193,831.00 RMB in the same period of 2022[34]. Operational Changes and Strategic Initiatives - The company has adjusted its accounting policies effective from January 1, 2023, impacting the financial statements retrospectively[8]. - Huatai Securities continues to focus on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[5]. - The company acquired a 100% stake in Huatai United Securities through a share transfer from China Eastern Airlines Group, completing the registration process[16]. - The company established a new investment fund with a total subscription scale of RMB 50,000 million, with an investment of RMB 7,500 million from its subsidiary[16]. - The company’s subsidiary in Singapore received a capital markets services license from the Monetary Authority of Singapore during the reporting period[17].