Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.01 per 10 shares, totaling RMB 878,349,207.41 based on 8,696,526,806 shares as of June 30, 2024[2] - The company will not allocate statutory surplus reserves for the 2024 interim period and will not issue bonus shares or convert capital reserves into share capital[2] - The cash dividend will be paid in RMB to A-share shareholders and in HKD to H-share shareholders, with the HKD amount calculated based on the average RMB to HKD exchange rate five working days prior to the board meeting[2] Risk Management - The company faces risks including regulatory changes, credit risk, market risk, operational risk, liquidity risk, reputational risk, and currency risk due to international operations[5] - The company has implemented measures to mitigate risks through organizational structure, system frameworks, risk management culture, and IT systems[5] - The company has established a comprehensive risk management framework consisting of five levels, including strategic arrangements by the board of directors, supervision by the board of supervisors, risk management decisions by senior management and the risk management committee, risk control by relevant functional departments, and direct management by various departments, branches, and subsidiaries[102] - The company has developed a scientific economic capital management model, covering market risk, credit risk, and operational risk, with internal models for market and credit risk economic capital measurement, and uses Basel Accord standard methods for operational risk measurement[107] - The company has implemented a comprehensive stress testing mechanism, regularly conducting stress tests on liquidity risk, credit risk, market risk, and net capital risk limits to assess changes in operations and risk conditions under extreme scenarios[108] - The company has established a risk management culture, integrating risk control and compliance into its corporate culture, and conducts professional training and activities to promote risk management awareness among all employees[109] - The company has developed a smart integrated group risk management platform, CMS-RISK, which enables T+1 cross-border, global, and multi-currency vertical risk management for the parent and subsidiary companies[110] - The platform integrates over ten risk management subsystems, including risk cockpit, market risk management, credit risk management, and operational risk management, achieving unified login and permission management[110] - The platform focuses on ensuring accurate calculation and submission of regulatory reports and effective internal risk monitoring and measurement analysis[110] - The company uses VaR (Value at Risk) as the primary tool for measuring market risk, with a 1-day, 95% confidence level VaR as the main indicator[117] - VaR models incorporate risk factors such as equity, interest rate, commodity, and currency risks, and consider diversification effects within portfolios[117] - Stress testing is used to assess potential losses under extreme market conditions, complementing VaR calculations[118] - The company continuously improves VaR models by adding new market risk factors and optimizing calculation methods[117] - For illiquid investment portfolios, such as equity investments, the company assumes a certain percentage decline in asset value to estimate potential impacts[117] - The risk management department monitors market risk exposure daily, monthly, and quarterly, generating reports and issuing warnings when risk limits are approached or exceeded[115] - The company employs a unified market risk management system across all markets and currencies, with both global and localized risk management approaches[113] - The company conducts sensitivity analysis on specific risk factors such as interest rates and exchange rates to assess potential impacts on its asset-liability portfolio[119] - The company has established a risk limit management system across various business departments, lines, and trading strategies to control profit and loss fluctuations and market risk exposure[120] - Credit risk management includes setting multi-level credit risk limits, internal credit ratings, collateral quantitative management, and credit risk measurement models[123][124][125][126] - The company uses internal credit rating models and systems to assess borrowers and bond issuers, applying these ratings to business authorization, limit calculation, and risk monitoring[124] - Collateral management includes a negative list mechanism, discount rate grading model tools, and regular adjustments to collateral scope and discount rates to ensure debt security[125] - Credit risk measurement models consider factors such as customer structure, single debt amount, loan term, and collateral concentration to calculate potential default losses[126] - The company's Board Risk Management Committee is responsible for reviewing and approving credit risk preferences, while the Risk Management Committee oversees the overall risk management of credit-related businesses[127] - The company has established a multi-level business authorization management system for financing businesses such as margin trading, stock pledge repurchase, and agreed repurchase securities trading, with comprehensive risk management measures including customer due diligence, credit approval, and dynamic adjustment of collateral[128] - The company has implemented a comprehensive operational risk management framework, including risk identification, monitoring, and event management mechanisms to mitigate risks related to internal fraud, external fraud, and IT system failures[132][133][134] - To manage liquidity risk, the company maintains a reserve of high-quality liquid assets, including government bonds and policy financial bonds, and has established a liquidity contingency management plan[137] - The company actively manages funding gaps using tools such as cash flow gap analysis, sensitivity analysis, and stress testing to identify potential risks and adjust funding plans accordingly[137] - The company has diversified its funding channels and balanced debt maturity distribution to avoid risks associated with concentrated debt maturities or over-reliance on a single funding source[137] - The company's net capital reached RMB 82.001 billion as of the end of the reporting period, with all risk control indicators consistently meeting regulatory requirements[140] - The company has established a dynamic monitoring and replenishment mechanism for risk control indicators, including a T+1 monitoring system and automatic early warning functions[140] - The company has implemented a comprehensive reputation risk management strategy, focusing on improving financial services, maintaining customer satisfaction, and preventing major reputation incidents[139] - The company faces reputation risks due to potential violations of professional ethics, business norms, or external events, which could negatively impact its brand value and market stability[138] - The company has established a capital replenishment mechanism through equity financing and subordinated debt issuance to ensure compliance with net capital requirements[140] - The company conducted stress tests and dynamic analysis of risk control indicators to ensure ongoing compliance with regulatory standards[140] Financial Performance - Total revenue and other income decreased by 8.25% year-on-year to RMB 14,362,394 thousand in H1 2024[29] - Net profit attributable to shareholders increased slightly by 0.44% to RMB 4,747,695 thousand in H1 2024[29] - Net cash flow from operating activities surged by 277.10% to RMB 44,085,990 thousand in H1 2024[29] - Total assets decreased by 8.15% to RMB 639,129,527 thousand as of June 2024[29] - Total liabilities decreased by 10.32% to RMB 514,600,038 thousand as of June 2024[30] - Net capital increased to RMB 82,001,064,827.79 as of June 2024, up from RMB 79,370,429,988.47 at the end of 2023[33] - Risk coverage ratio improved to 198.32% as of June 2024, compared to 177.28% at the end of 2023[33] - Revenue and other income totaled RMB 14.362 billion, a decrease of 8.25% year-on-year, while net profit attributable to parent company shareholders was RMB 4.748 billion, an increase of 0.44% year-on-year[41] - The company achieved total revenue and other income of RMB 14.362 billion in the first half of 2024, a decrease of 8.25% year-on-year[73] - Net profit attributable to shareholders was RMB 4.748 billion, a 0.44% increase year-on-year[73] - Fee and commission income decreased by 15.49% to RMB 4.453 billion, with securities and futures brokerage income down 12.96% to RMB 3.493 billion, underwriting and sponsorship income down 40.07% to RMB 259 million, and asset management income down 7.16% to RMB 347 million[74] - Interest income decreased by 7.22% to RMB 5.032 billion, mainly due to a decline in margin trading and securities lending scale and interest rates[75] - Net investment income increased by 21.31% to RMB 4.753 billion, driven by growth in fixed income investment income[75] - Other income and net gains decreased by 88.07% to RMB 124 million, primarily due to a decline in commodity business income from subsidiary China Merchants Futures[75] - Total expenses decreased by 9.52% to RMB 10.145 billion, with fee and commission expenses down 16.93% to RMB 945 million, mainly due to reduced brokerage and futures commission expenses[76] - Interest expenses increased by 1.67% to RMB 4.565 billion, driven by higher interest expenses on repurchase agreements and short-term financing, partially offset by lower bond interest expenses[77] - Employee costs decreased by 3.48% to RMB 3.114 billion, with reductions in salaries, bonuses, pensions, and other social benefits[77] - Wealth management and institutional business revenue decreased by 12.81% to RMB 7.433 billion, while investment and trading revenue increased by 20.15% to RMB 5.648 billion[78] - Total assets decreased by 8.15% to RMB 6.391 trillion, with financial assets decreasing by RMB 50.93 billion and repurchase agreements decreasing by RMB 141.48 billion[80] - Total liabilities decreased by 10.32% to RMB 5.146 trillion, with short-term financing decreasing by RMB 135.85 billion and bonds payable decreasing by RMB 182.37 billion[80] - The company's liabilities include 32.03% from repurchase agreements, short-term borrowings, and interbank borrowings, 17.76% from brokerage client payables, 20.16% from bonds payable, 8.44% from short-term financing payables, and 12.47% from financial liabilities and derivative financial liabilities measured at fair value through profit or loss[81] - The company's asset-liability ratio, excluding brokerage client payables, decreased by 1.62 percentage points to 77.27% as of June 2024[82] - Net cash from operating activities increased by 277.10% to RMB 44.09 billion, while net cash used in investing activities decreased by 902.27% to RMB -10.63 billion, and net cash used in financing activities decreased by 78.14% to RMB -35.33 billion[83] - The company's cash and cash equivalents decreased by RMB 1.87 billion, with net cash from operating activities of RMB 440.86 billion, net cash used in investing activities of RMB 106.28 billion, and net cash used in financing activities of RMB 353.31 billion[84] - Overseas assets amounted to RMB 44.36 billion, accounting for 6.94% of total assets[85] - The company's financial assets measured at fair value include bonds with a closing balance of RMB 27.41 billion, funds with a closing balance of RMB 3.85 billion, and stocks with a closing balance of RMB 2.72 billion[86] Business Operations - The company operates 265 securities business departments and 13 branches in mainland China, with additional operations in Hong Kong, UK, and South Korea[38] - The number of active trading clients reached 18.4306 million, an increase of 7.53% year-on-year, while the size of client assets under custody was RMB 3.60 trillion, a decrease of 3.23% compared to the end of 2023[43] - The average monthly active users (MAU) of the company's app increased by 6.25% year-on-year, ranking 5th in the securities industry, with the highest daily usage time per user in the industry[43] - The financial product balance under the "e招投" service reached RMB 6.314 billion, an increase of 35.61% compared to the end of 2023, with the number of signed clients reaching 70,800, an increase of 20.82%[43] - The number of corporate clients and the size of corporate client assets under custody increased by 4.99% and 6.39% respectively compared to the end of 2023[43] - The total transaction volume of stocks and funds in the Shanghai, Shenzhen, and Beijing markets was RMB 10.64 trillion, a decrease of 18.59% year-on-year, with a market share of 4.59%, down 0.65 percentage points[44] - The net income from financial product distribution was RMB 348 million, an increase of 0.87% year-on-year[44] - The number of wealth management clients with assets under custody of RMB 300,000 or more was 505,100, a decrease of 8.13% year-on-year, with assets under custody of RMB 1.23 trillion, a decrease of 15.17%[44] - The cumulative trading volume of China's futures market was 3.46 billion lots, a decrease of 12.43% year-on-year, with a cumulative trading value of RMB 281.51 trillion, an increase of 7.40%[45] - The client equity of China's futures market was RMB 1.39 trillion, a decrease of 2.09% compared to the end of 2023, while the client equity of CMB Futures was RMB 27.28 billion[45] - Zhaoshang International's Hong Kong stock trading volume reached HKD 73.928 billion, and US stock trading volume reached HKD 85.953 billion in the first half of 2024, with significant year-on-year growth in US stock and bond trading commission income[46] - Zhaoshang International's client asset custody scale increased by 10.53% to HKD 187.831 billion by the end of June 2024 compared to the end of 2023[46] - The A-share market's securities lending scale decreased by 72.54% to RMB 30.322 billion by the end of June 2024 compared to the end of 2023[47] - The company's margin trading balance decreased by 9.47% to RMB 74.923 billion by the end of June 2024 compared to the end of 2023[48] - The company's securities lending balance decreased by 59.28% to RMB 1.391 billion by the end of June 2024 compared to the end of 2023[48] - The company's overseas margin financing scale increased by 31.79% to HKD 3.354 billion by the end of June 2024 compared to the end of 2023[48] - The public fund management scale in the entire market increased by 12.61% to RMB 31.08 trillion by the end of June 2024 compared to the end of 2023[50] - The company's coverage rate of key private fund managers with management scale exceeding RMB 5 billion reached 80% by the end of June 2024[51] - The company's stock research covers 2,607 listed companies domestically and internationally, covering 93% of the total market value of the CSI 300 index components, 94% of the ChiNext index components, and 79% of the STAR Market index components by the end of June 2024[52] - The number of custody and outsourcing products decreased by 3.49% to 41,500, with a scale of RMB 3.28 trillion, down by 5.48% compared to the end of 2023[54] - The company's market share of private fund custody products reached 21.82%, maintaining the industry's top position for ten consecutive years[54] - A-share equity financing market saw a significant decline, with the number of issuances dropping by 66.75% and the total scale decreasing by 81.18% to RMB 100.827 billion[55] - A-share IPO issuance decreased by 86.16% to RMB 30.272 billion, while refinancing dropped by 77.74% to RMB 70.555 billion[55] - Hong Kong market IPO fundraising totaled USD 1.873 billion, down by 19.38%, with equity financing amounting to USD 6.35 billion, a decrease of 45.22%[56] - The company completed 2 Hong Kong IPO projects with underwriting amounts totaling USD 48.89 million[56] - Domestic bond issuance scale reached RMB 21.96 trillion, a year-on-year increase of 1.13%, with credit bond issuance growing by 4.59% to RMB 9.72 trillion[59] - The company's domestic bond underwriting amount increased by 18.41% to RMB 1.71444 trillion, with ABS underwriting amount growing by 57.97%[59] - The company's green bond and technology innovation bond underwriting amount reached RMB 14.938 billion, a year-on-year increase of 71.75%[59] - The company's A-share IPO underwriting amount decreased by 25.23% to RMB 1.636 billion, while refinancing underwriting amount dropped by 25.17% to RMB 3.547 billion[57] - Total bond underwriting amount reached RMB 1,714.44 billion, a year-on-year increase of 18.41%[62] - Global M&A transaction value in H1 2024 was USD 1.94 trillion, up 15% YoY, while China's M&A market transaction value decreased by 23.52% to RMB 717.137 billion[63] - Securities companies' private asset management product scale reached RMB 5.80 trillion by the end of June 2024, up 9.30% from the end of 2023[65] - CMB Asset Management's total AUM reached RMB 302.159 billion by the end of June 2024, a 2.48% increase from the end of 2023[65] - China's equity investment market saw a 22.6% YoY decline in new fund raising to RMB 622.939 billion in H1 2024[67] - CMB Capital completed RMB 1.7 billion in new fund filings and invested RMB 217 million in 3 companies in H1 2024[67] - Total public fund market scale reached RMB 31.08 trillion by the end of June 2024, a 12.61% increase from the end of 2023[68] - Bosera Fund's AUM reached RMB 16,987 billion by the end of June 2024, an 8.55% increase from the end of 2023, with public fund AUM (excluding feeder funds) at RMB 10,773 billion, up 13.44%[69] - Total assets under management of China
招商证券(06099) - 2024 - 中期业绩