1
(
GDR under the Symbol: HTSC
)
RESULTS ANNOUNCEMENT FOR
THE YEAR ENDED DECEMBER 31, 2024
The Board hereby announces the audited annual results of the Company and its subsidiaries for
the year ended December 31, 2024. This announcement contains the full text of the annual results
announcement of the Company for 2024, which is in compliance with the requirements of the Hong
Kong Listing Rules for the information set out in the preliminary announcement of annual results.
PUBLISHMENT OF THE ANNUAL RESULTS ANNOUNCEMENT AND THE ANNUAL
REPORT
DEFINITIONS
Unless the context otherwise requires, capitalized terms used in this announcement shall have the
same meanings as those defined in the section headed “Definitions” in this announcement.
Huatai Securities Co., Ltd.
March 28, 2025
This 2024 annual results announcement of the Company will be available on the website of London Stock
Exchange (www.londonstockexchange.com), the website of National Storage Mechanism
(data.fca.org.uk/#/nsm/nationalstoragemechanism), and the website of the Company (www.htsc.
com.cn), respectively.
The annual report of the Company for 2024 will be available on the website of London Stock
Exchange (www.londonstockexchange.com), the website of the National Storage Mechanism
(data.fca.org.uk/#/nsm/nationalstoragemechanism) and the website of the Company in due course
on or before April 30, 2025.
2
CONTENTS
Important Notice
.......................................................
3
Definitions
...........................................................
6
CEO’s Letter
..........................................................
11
Company Profile and Key Financial Indicators
................................
14
Management Discussion and Analysis and Report of the Board
...................
26
Corporate Governance
...................................................
121
Environmental and Social Responsibilities
...................................
227
Major Events
..........................................................
246
Changes in Shares and Shareholders
........................................
264
Bonds
...............................................................
280
Index of Documents for Inspection
.........................................
318
Information Disclosure of Securities Companies
...............................
319
Appendix I
Main Business Qualifications
...................................
320
Appendix II
List of Branch Offices and Securities Branches
....................
325
Appendix III
Other Information
..........................................
360
Appendix IV
Information Disclosures Index
................................
361
Financial Report
3
IMPORTANT NOTICE
The Board of Directors, the Supervisory Committee, Directors, Supervisors and senior
management of the Company undertake that the information in this annual report is true,
accurate and complete and contains no false record, misleading statement or material
omission, and assume individual and joint legal liabilities to the information in this report.
This report was considered and approved at the fifteenth meeting of the sixth session of the
Board of the Company.
Directors absent from the meeting
Position of
absent Director
Name of absent Director
Reason for absence
Name of proxy
Director
Chen Zhongyang
Business engagement
Ke Xiang
Director
Liu Changchun
Business engagement
Ke Xiang
Independent Director
Wang Bing
Business engagement
Wang Quansheng
None of the Directors and Supervisors had objections towards this report.
The annual financial report prepared in accordance with the CASBE and the IFRS was
audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP and Deloitte Touche
Tohmatsu, respectively, which issued a standard unqualified audit report to the Company.
Zhang Wei, the person in charge of the Company, Jiao Xiaoning, the person in charge of
accounting, and Zhang Xiaodi, the officer in charge of the accounting office of the Company
(head of accounting department), hereby warrant and guarantee that the financial report
contained in the annual report is true, accurate and complete.
The profit distribution proposal of the Company for the Reporting Period which has been
considered and approved by the Board is as follows: the Company will distribute cash
dividend of RMB0.37 (tax inclusive) per Share. The proposal is subject to approval at the
general meeting of the Company. In addition, the Company has distributed the 2024 interim
cash dividend of RMB0.15 (tax inclusive) per Share in October 2024. The total cash dividend
proposed to be distributed for the Reporting Period is RMB0.52 (tax inclusive) per Share.
4
Forward-looking statements including future plans and development strategies involved in
this annual report do not constitute the Company’s substantive commitments to investors.
The investors are advised to pay attention to investment risks.
There is no non-operating misappropriation of funds of the Company by any controlling
shareholders and their related parties during the Reporting Period.
The Company has not provided any external guarantees in violation of the stipulated
decision-making procedures during the Reporting Period.
During the Reporting Period, there exists no such circumstance that more than half of the
Directors could not guarantee the authenticity, accuracy and integrity of the annual report
disclosed by the Company.
The report is prepared by the Company in both Chinese and English. In the event of any
inconsistency, the Chinese version shall prevail.
5
Warning on Major Risks
Domestic and external macroeconomy and monetary policies, laws and regulations on financial
and securities industries, changing trends in real economy and financial industries and other
factors may all have an impact on the Company’s business. Meanwhile, like other companies in
the securities industry, inherent risks in the securities market such as market volatility and market
liquidity may also affect the Company’s business.
Main risks in business operation faced by the Company include: policy risks arising from national
macro-control measures, changes in laws, regulations, relevant regulatory policies and transaction
rules in capital market and securities industry, which will adversely influence the business of
securities companies; compliance risks arising from business management or professional activities
of the Company or its employees violating laws, regulations or codes, which cause the Company
bearing legal responsibility, being subject to regulatory measures and disciplinary sanctions,
suffering from property or business reputation loss; legal risks arising from the Company’s failure
to abide by provisions and requirements of laws and regulations, which expose the Company to
litigations, compensation and fines and suffer from loss; market risks arising from fluctuations in
risk factors, including stock prices, interest rates, exchange rates and commodities, which make
the Company suffer from loss in assets; credit risks arising from the default of financiers, issuers
or counterparties in financing, investment, trading and other businesses, which make the Company
suffer from loss; liquidity risks arising from the Company’s inability to obtain sufficient funds
at a reasonable cost in time to pay matured debts, fulfil other payment obligations and satisfy
the capital needs for normal business; information technology risks caused by the failure of the
Company’s network and information system to ensure the stable, efficient and safe operation of
transaction and business management in terms of business realization, timely response, solving
capacity and network and data security, resulting from service capability abnormality or data
damage and leakage out of internal or external reasons, which make the Company suffer from
loss; operational risks arising from loss-causing incomplete or problematic internal procedures,
personnel, information technology systems and external incidents; reputational risk of negative
comments on the Company by investors, issuers, regulatory authorities, disciplinary organizations,
the public and the media arising from the Company’s behaviors or external events, and its
employees’ violation of integrity rules, professional ethics, business norms, and industrial rules
and regulations, which may damage the brand value, hinder the normal operation, and even
undermine the market and social stability; money laundering risks arising from the utilization of
the Company’s products or services by criminals to engage in money laundering, terrorist financing
and other activities which lead to negative effects on the Company’s reputation, compliance,
operation and other aspects; model risks that cause adverse consequence or loss to the Company’s
businesses resulting from incorrect or inappropriate model design, development or use; integrity
risks arising from abuse of official power for personal gain by the employees of the Company,
which may cause harm or negative impact to the Company. Besides, with the advancement of the
Company’s internationalization strategy, the Company’s business expands into the United States,
the United Kingdom, Singapore, Vietnam, Japan, Hong Kong and other countries and regions, and
the Company is exposed to more complex market environment and regulatory requirements.
6
DEFINITIONS
In this report, unless the context otherwise requires, the following terms and expressions have the
meanings set forth below:
DEFINITIONS OF CAPITALIZED TERMS AND EXPRESSIONS
A Share(s)
domestic share(s) in the share capital of the Company with
nominal value of RMB1.00 each, which are listed on the Shanghai
Stock Exchange and traded in RMB
APP
Application
Articles of Association
the articles of association of the Company, as amended,
supplemented or otherwise modified from time to time
Bank of Jiangsu
Bank of Jiangsu Co., Ltd. (
江蘇銀行股份有限公司
)
Beijing Stock Exchange
the Beijing Stock Exchange (
北京證券交易所
)
Board or Board of Directors
the board of Directors of the Company
CAGR
compound annual growth rate
CASBE
the China Accounting Standards for Business Enterprises (
中國企
業會計準則
)
China or the PRC
the People’s Republic of China
China Southern Asset
Management
China Southern Asset Management Co., Ltd. (
南方基金管理股份
有限公司
)
Communications Holding
Jiangsu Communications Holding Co., Ltd. (
江蘇交通控股有限
公司
)
Company Law
Company Law of the People’s Republic of China (
《中華人民共和
國公司法》
), as amended from time to time
7
CSRC
the China Securities Regulatory Commission (
中國證券監督管理
委員會
)
Director(s)
director(s) of the Company
FICC
fixed income, currency and commodity
Futures IB Business
a business activity in which securities firms, as commissioned
by futures companies, introduce clients to participate in futures
transactions of futures companies and provide other related
services
GDR
global depository receipt
Govtor Capital
Govtor Capital Group Co., Ltd. (
江蘇高科技投資集團有限公司
)
Group, Our Group, we or us
the Company and its subsidiaries, and their respective
predecessors
Guoxin Group
Jiangsu Guoxin Investment Group Limited (
江蘇省國信集團有
限公司
, formerly known as Jiangsu Guoxin Asset Management
Group Limited (
江蘇省國信資產管理集團有限公司
))
H Share(s)
foreign share(s) in the share capital of the Company with nominal
value of RMB1.00 each, which are listed on the Hong Kong Stock
Exchange and traded in HK dollars
HKEX
Hong Kong Exchanges and Clearing Limited (
香港交易及結算所
有限公司
)
HK$, HKD or HK dollars
the lawful currency of Hong Kong
Hong Kong
the Hong Kong Special Administrative Region of the PRC
Hong Kong Stock Exchange
The Stock Exchange of Hong Kong Limited (
香港聯合交易所有
限公司
)
8
HTSC, Huatai Securities,
our Company, Company or
Parent Company
a joint stock company incorporated in the PRC with limited
liability under the corporate name
華泰證券股份有限公司
(Huatai
Securities Co., Ltd.), converted from our predecessor
華泰證券
有限責任公司
(Huatai Securities Limited Liability Company)
on December 7, 2007, carrying on business in Hong Kong as
“HTSC”, and was registered as a registered non-Hong Kong
company under Part 16 of the Companies Ordinance under the
Chinese approved name of “
華泰六八八六股份有限公司
” and
English name of “Huatai Securities Co., Ltd.”; the H Shares of
which have been listed on the Main Board of the Hong Kong
Stock Exchange since June 1, 2015 (Stock Code: 6886); the A
Shares of which have been listed on the SSE since February 26,
2010 (Stock Code: 601688); and the global depository receipts
of which have been listed on the London Stock Exchange plc
since June 2019 (Symbol: HTSC), unless the context otherwise
requires, including its predecessor
Huatai Asset Management
Huatai Securities (Shanghai) Asset Management Co., Ltd. (
華泰
證券
(
上海
)
資產管理有限公司
), a wholly-owned subsidiary of
Huatai Securities
Huatai Financial Holdings
(Hong Kong)
Huatai Financial Holdings (Hong Kong) Limited (
華泰金融
控股
(
香港
)
有限公司
), a wholly-owned subsidiary of Huatai
International
Huatai Foundation
Jiangsu Huatai Foundation (
江蘇省華泰公益基金會
)
Huatai Futures
Huatai Futures Co., Ltd. (
華泰期貨有限公司
), a wholly-owned
subsidiary of Huatai Securities
Huatai Innovative Investment
Huatai Innovative Investment Co., Ltd. (
華泰創新投資有限公司
),
a wholly-owned subsidiary of Huatai Securities
Huatai International
Huatai International Financial Holdings Company Limited (
華泰
國際金融控股有限公司
), a wholly-owned subsidiary of Huatai
Securities
Huatai-PineBridge
Huatai-PineBridge Fund Management Co., Ltd. (
華泰柏瑞基金管
理有限公司
)
Huatai Purple Gold Investment
Huatai Purple Gold Investment Co., Ltd. (
華泰紫金投資有限責任
公司
), a wholly-owned subsidiary of Huatai Securities
Huatai Securities (USA)
Huatai Securities (USA), Inc. (
華泰證券
(
美國
)
有限公司
), a
wholly-owned subsidiary of Huatai International
Huatai United Securities
Huatai United Securities Co., Ltd. (
華泰聯合證券有限責任公司
),
a wholly-owned subsidiary of Huatai Securities
9
IFRS(s)
the International Financial Reporting Standard(s)
IPO(s)
the initial public offering(s)
IT
information technology
Jiangsu Equity Exchange
Jiangsu Equity Exchange Co., Ltd. (
江蘇股權交易中心有限責
任公司
), a holding subsidiary of Huatai Securities, changed to a
participating subsidiary of Huatai Securities after the Reporting
Period
Jiangsu SASAC
State-owned Assets Supervision and Administration Commission
of Jiangsu Provincial Government (
江蘇省政府國有資產監督管
理委員會
)
Jiangsu Securities
Regulatory Bureau
Jiangsu Securities Regulatory Bureau of the CSRC (
中國證監會
江蘇監管局
)
Listing Rules or Hong Kong
Listing Rules
the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited (as amended, supplemented or
otherwise modified from time to time)
London Stock Exchange or
LSE
the London Stock Exchange plc (
倫敦證券交易所
)
Model Code
the Model Code for Securities Transactions by Directors of Listed
Issuers as set out in Appendix C3 to the Hong Kong Listing Rules
MSCI
Morgan Stanley Capital International Index
NEEQ
the National Equities Exchange and Quotations for small and
medium-sized enterprises
OTC
over-the-counter
PBOC
the People’s Bank of China
QFII
qualified foreign institutional investor
Reporting Period
the year ended December 31, 2024
Securities Law
Securities Law of the People’s Republic of China (
《中華人民共
和國證券法》
), as amended from time to time
10
SFO
the Securities and Futures Ordinance (Chapter 571 of the Laws
of Hong Kong), as amended, supplemented or otherwise modified
from time to time
SFC
the Securities and Futures Commission of Hong Kong (
香港證券
及期貨事務監察委員會
)
Shanghai Brilliance
Shanghai Brilliance Credit Rating & Investors Service Co., Ltd.
(
上海新世紀資信評估投資服務有限公司
)
Shanghai Clearing House
the Interbank Market Clearing House Co., Ltd. (
銀行間市場清算
所股份有限公司
)
Shanghai Stock Exchange or
SSE
the Shanghai Stock Exchange (
上海證券交易所
)
Shenzhen Stock Exchange
the Shenzhen Stock Exchange (
深圳證券交易所
)
Singapore Subsidiary
Huatai Securities (Singapore) Pte. Limited, a wholly-owned
subsidiary of Huatai International
STAR Market
science and technology innovation board of SSE
Supervisor(s)
supervisor(s) of the Company
Supervisory Committee
the supervisory committee of the Company
USD or US dollar
the lawful currency of the United States of America
VAR
value at risk
Wind Information
Wind Information Co., Ltd. (
萬得信息技術股份有限公司
), a
service provider of financial data, information and software in
Mainland China
%
per cent.
In the 2024 Annual Report, any discrepancies between the total shown and the sum of the amounts
listed are due to rounding; and any discrepancies in the change percentages of an item are due to
the difference of currency unit of the item.
11
CEO’S LETTER
Dear Shareholders:
Where ambition guides, even vast oceans can be traversed. This past year has seen the
incubation and development of new quality productive forces (
新質生產力
), particularly in
artificial intelligence, which has been remarkable. Building on advancements in PC and internet
technologies, we now witness the immense potential of disruptive technologies to enhance social
productivity and transform production organization. In this era of global competition, Chinese
enterprises are at the forefront of technological transformation, instilling strong confidence and
momentum into China’s economy and driving a global revaluation of Chinese assets.
Amid the surge of new quality productive forces, the Company prioritizes strategic emerging
industries and future industries such as artificial intelligence, high-end manufacturing, biomedicine,
and green energy, supporting innovative enterprises throughout their lifecycle, creating a seamless
connection between technology, industry, and finance. To meet the distinct needs of increasingly
sophisticated institutional clients, the Company leverages in-depth insights to integrate resources
across the entire business chain. The Company enhances its integrated customer service and
platform operation systems, providing research, trading, and product services tailored to client
requirements. In 2024, the Company’s market competitiveness in serving key institutional client
groups was consistently strengthened. Our rankings for serving top mutual fund and insurance
clients have continued to improve, and our market-making and comprehensive derivatives
services led the industry. For the new generation of individual clients, the Company has adopted a
buyer-side mindset, transitioning from product sales to asset allocation and trading services. The
Company has established professional service capabilities driven by a content platform, resulting in
expanded clients and asset scales. The AUM of equity funds, non-money market funds, and equity
index funds remain at the top of the securities industry.
On the path of innovation and transformation, the Company’s overall strength has
strengthened, with its asset scale and profitability firmly ranking among the top in the sector.
As of the end of 2024, total assets of the Group reached RMB814,270 million, and total equity
attributable to the shareholders of the Company was RMB191,674 million. In 2024, the Group
recorded total revenue, other income and gains of RMB54,285 million, and profit for the year
attributable to the shareholders of the Company of RMB15,351 million. The MSCI ESG rating has
risen to AAA, the highest rating within the global investment banking sector.
Seizing new market opportunities stemming from global value chain restructuring.
The
significant changes in the global industries and economy bring both competition and uncertainties,
yet they also present ample market opportunities for outstanding Chinese enterprises. Emerging
industries, such as high-end manufacturing, TMT (media and telecommunications), and new
energy, continue to strengthen their positions in the global value chain. Global expansion has
become the inherent development logic of advanced manufacturing industry, with leading
enterprises in niche sectors emerging as prominent representatives of Chinese manufacturing.
12
Since the listing of H Shares in 2015, the Company has deeply expanded its international
business layout, gradually developing a global value chain system that covers and interconnects
Mainland China, Hong Kong, Singapore, the US, the UK, and other markets. The Company has
also actively expanded into mature markets such as Japan and emerging markets in Southeast
Asia and the Middle East, building an integrated comprehensive financial service system.
Over the past decade, the Company has supported the global capital operations of enterprises,
focusing on key sectors such as semiconductors, artificial intelligence, autonomous driving, and
consumer industries, which has resulted in several star projects listed on the Hong Kong and US
stock markets. The Company has served institutional clients in global investment and trading,
maintaining a leading market position in key business areas such as equity derivatives and FICC
(fixed income, currency and commodities). Additionally, the Company has served wealth clients
in global asset allocation, launched the “Cross-boundary Wealth Management Connect” (
跨境理財
通
) business as one of the first pilot securities firms, and continuously optimized and iterated the
“ZhangLe Global” (
漲樂全球通
) platform to enhance the client experience.
Enhancing integrated financial services capabilities to support client growth.
For
the Company, internationalization means truly engaging in high-level global competition. By
effectively integrating resources across the entire business chain, including investment banking,
research, trading, brokerage, and wealth management, the Company has accelerated the expansion
of its client service network, continuously covering high-quality assets, enhancing product creation
capabilities, and providing clients with one-stop cross-border comprehensive financial solutions.
To efficiently link assets, clients, and products, the Company is concurrently accelerating
the development of a unified middle and back-office support system, establishing an integrated
compliance and risk-control system for the global market, and optimizing the development and
training mechanism for an international talent team. The Company places particular emphasis
on leveraging its long-accumulated technological strength to construct a global technology
architecture and platform system. In 2024, the Company’s self-developed global trading platform
was officially launched, connecting international financial hubs like Hong Kong, New York,
London, and Singapore. This platform offers customers comprehensive financial asset trading
services for stocks, bonds, funds, structured products, and financial derivatives. In the future, the
Company will continue to enhance the global deployment of fundamental capabilities in areas such
as trading, clearing and settlement, and risk control. Equipped with genuine global capabilities, it
will serve customers around the world, ensuring that the “One Huatai” service can promptly meet
customer needs anytime and anywhere.
Reshaping the AI-driven financial paradigm and exploring new development horizons
with clients.
The historic breakthrough of large language models has ushered in the era of artificial
intelligence. The advent of explosive AI + vertical-category application scenarios is imminent,
and competition across applications, access points, computing power, and cloud services is
intensifying. For the financial industry, upgrading business scenarios is just the beginning. In the
future, we must embrace the reshaping of the service paradigm. By strengthening the fundamental
capabilities of large-scale AI models, the Company is actively exploring the potential to transform
business scenarios with AI-based thinking and technology. Currently, the Company has launched a
large-model platform system that integrates heterogeneous computing, operation management, and
application development. Significant progress has been made in typical scenarios like investment
research, investment advisory, and investment banking. Leveraging intelligent tools, the Company
has enhanced its customer service capabilities and is dedicated to developing next-generation
intelligent applications for the clients of the securities industry.
13
The Company adopts a multi-dimensional “capital + resources” approach to establish
a fintech ecosystem. Through strategic investments, it provides capital support to innovative
enterprises, accelerating the incubation and growth of high-quality fintech companies. By sharing
resources, it opens up Huatai’s business scenarios, enhances the capabilities of ecosystem
partners, and collaborates to facilitate the implementation of emerging technologies. This, in turn,
generates greater value for customers and the industry through the power of the ecosystem. The
era of artificial intelligence is one of human-machine symbiosis and ecosystem co-creation. Only
by maintaining an open-minded stance can we overcome cognitive limitations and broaden our
development horizons.
Each technological wave ushers in a new era of industrial transformation. Technological
advancements bring both challenges and opportunities. Huatai Securities has thrived amidst
continuous transformation, confronting challenges and growing stronger with each encounter. The
Company has evolved alongside outstanding Chinese enterprises and a robust Chinese economy.
Regardless of global changes or market fluctuations, Huatai Securities consistently adheres to a
customer-centered philosophy, continuously refines its core digital transformation capabilities, and
steadfastly pursues globalization. Guided by innovation, we will continue to be the torchbearer
of profound value and the creator of long-term value in the grand innovation propelled by new
technologies. We will accompany our clients into an even more exciting future and contribute the
strength of Huatai to the magnificent journey of China’s economic transformation.
CEO Zhou Yi
March 28, 2025
14
COMPANY PROFILE AND KEY FINANCIAL INDICATORS
I.
COMPANY INFORMATION
Chinese name of the Company
華泰證券股份有限公司
Abbreviation of Chinese name of the Company
華泰證券
English name of the Company
HUATAI SECURITIES CO., LTD.
Abbreviation of English name of the Company
HTSC
Legal representative of the Company
Zhang Wei
Chief Executive Officer and chairman of the
Executive Committee of the Company
Zhou Yi
Authorized representatives of the Company
Zhou Yi, Zhang Hui
Registered capital and net capital of the Company
Unit: Yuan
Currency: RMB
As at the end of
the Reporting Period
As at the end of
the previous year
Registered capital
9,027,302,281.00
9,074,663,335.00
Net capital
94,142,061,443.95
94,076,764,232.03
Qualifications of each business line of the Company
According to the business license issued by Jiangsu Provincial Market Regulation
Administration, the business scope of the Company includes: licensed items: securities
business; securities investment consultancies; sales of public offering securities investment
funds; custody of securities investment fund (Projects that need to be approved by law shall
be carried out upon approval by relevant authorities, and the specific business projects are
subject to the approval results) general items: providing intermediary referrals by securities
company for futures companies (Except for projects that need to be approved by law,
business activities can be conducted independently with the business license in accordance
with the laws)
Please refer to “Appendix I. Main Business Qualifications” in this report for the main
business qualifications of the Company.
15
II.
CONTACT
Secretary of the Board
Name
Zhang Hui
Address
11/F, Building 1, No. 228 Middle Jiangdong Road, Nanjing, Jiangsu
Province, the PRC
Tel.
025-83387272, 83387780, 83389157
Fax
025-83387784
Email
zhanghui@htsc.com
Joint company secretary
Joint company secretary
Name
Zhang Hui
Kwong Yin Ping Yvonne
Address
11/F, Building 1, No. 228 Middle
Jiangdong Road, Nanjing, Jiangsu
Province, the PRC
40th Floor, Dah Sing Financial Centre,
No. 248 Queen’s Road East, Wanchai,
Hong Kong, the PRC
III. BASIC INFORMATION
Registered address of the Company
Historical changes in registered
address of the Company
In July 2015, the Company has completed the change
in business registration, and its registered address
was changed from “No. 90 East Zhongshan Road,
Nanjing, Jiangsu Province, the PRC” to “No. 228
Middle Jiangdong Road, Nanjing, Jiangsu Province,
the PRC”
Office address of the Company
No. 228 Middle Jiangdong Road, Nanjing,
Jiangsu Province, the PRC
Postal code of office address of
the Company
210019
62/F, The Center, 99 Queen’s Road Central,
Company website
https://www.htsc.com.cn
Email
boardoffice@htsc.com
Main exchange
025-83389999
Customer service hotline
95597 or 4008895597
Company fax
025-83387784
Business License Unified Social
Credit Code
91320000704041011J
Index of changes during the
Reporting Period
No change during the Reporting Period
16
IV.
INFORMATION DISCLOSURE AND LOCATION FOR INSPECTION OF
DOCUMENTS
Names and websites of newspapers
for disclosure of annual report
of the Company
China Securities Journal (https://www.cs.com.cn),
Shanghai Securities News (https://www.cnstock.com),
Securities Times (https://www.stcn.com),
Securities Daily (http://www.zqrb.cn)
Websites of the stock exchanges
for disclosure of annual report
of the Company
Shanghai Stock Exchange (https://www.sse.com.cn),
Hong Kong Stock Exchange (https://www.hkexnews.hk),
London Stock Exchange (https://www.londonstockexchange.com)
Location for inspection of annual
report of the Company (A Share)
No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province,
the PRC
Location for inspection of annual
report of the Company (H Share)
No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province,
the PRC;
62/F, The Center, 99 Queen’s Road Central, Hong Kong, the PRC
Index of changes during
the Reporting Period
No change during the Reporting Period
V.
SHARES/DEPOSITORY RECEIPTS OF THE COMPANY
Type of shares/
depository receipts
Stock exchange for listing
Stock name
Stock code
A Share
Shanghai Stock Exchange
華泰證券
601688
H Share
Hong Kong Stock Exchange
HTSC
6886
GDR
London Stock Exchange
Huatai Securities Co., Ltd.
HTSC
The Company did not change the stock name.
VI.
OTHER INFORMATION OF THE COMPANY
(I)
Historical development of the Company, mainly including the reorganization and
capital increases in the previous years
The predecessor of the Company was Jiangsu Securities Company (
江蘇省證券公司
),
which was established in December 1990 as approved by the headquarters of the PBOC,
obtained the business license on April 9, 1991, and officially opened for business
on May 26, 1991. In 1994, the Economic Reform Commission of Jiangsu Province
approved the conversion of the Company to be a directional stock raising company.
In June 1997, the Company changed its name to “
江蘇證券有限責任公司
” (Jiangsu
Securities Co., Ltd.). In 1999, as considered and approved at the general meeting of the
Company and approved by the CSRC on December 9, 1999, the Company changed its
name to “
華泰證券有限責任公司
” (Huatai Securities Limited Liability Company). In
2007, as considered and approved at the general meeting of the Company and approved
by the CSRC on November 29, 2007, the Company was converted into “
華泰證券
股份有限公司
” (Huatai Securities Co., Ltd.) in its entirety. On December 7, 2007,
the Company completed the business registration for such changes. In July 2009, the
Company acquired Xintai Securities Co., Ltd. (
信泰證券有限責任公司
). In February
2010, the Company was successfully listed on the Shanghai Stock Exchange. In June
2015, the Company was listed on the Main Board of the Hong Kong Stock Exchange. In
June 2019, the GDR issued by the Company was listed and traded on the Main Market
of the London Stock Exchange.
17
Major capital changes of the Company:
When it was established on April 9, 1991, the registered capital of the Company was
RMB10,000,000.
The registered capital of the Company increased to RMB202,000,000 in June 1994.
The registered capital of the Company increased to RMB404,000,000 in June 1997.
The registered capital of the Company increased to RMB828,000,000 in May 1998.
The registered capital of the Company increased to RMB850,320,000 in December
1999.
The registered capital of the Company increased to RMB2,200,000,000 in April 2001.
The registered capital of the Company increased to RMB4,500,000,000 in November
2007.
The registered capital of the Company increased to RMB4,815,438,725 on July 30,
2009.
In February 2010, the Company completed its initial public offering of 784,561,275
RMB-denominated ordinary shares (A Shares) on the Shanghai Stock Exchange, after
which the Company’s registered capital was RMB5,600,000,000.
In June 2015, the Company completed its listing on the Main Board of the Hong Kong
Stock Exchange and commenced trading. After the exercise of the over-allotment
option, the Company issued 1,562,768,800 H Shares in total, and the total share capital
of the Company changed to 7,162,768,800 shares. Due to the issuance and listing of
H Shares, the relevant state-owned shareholders transferred 156,276,880 state-owned
shares (A Shares) of the Company held by them to the National Council for Social
Security Fund of the PRC in the form of H Shares, on the basis of 10% of the number of
H Shares issued this time. The changes in share capital structure of the Company were
as follows: 5,443,723,120 A Shares, which accounted for 76.00% of the total number of
shares; and 1,719,045,680 H Shares, which accounted for 24.00% of the total number of
shares.
In August 2018, the Company completed the non-public issuance of 1,088,731,200
RMB-denominated ordinary shares (A Shares) by way of “Non-Public Issuance
to Specific Investors”, after which the Company’s registered capital was
RMB8,251,500,000. The changes in share capital structure of the Company were as
follows: 6,532,454,320 A Shares, which accounted for 79.17% of the total number of
shares; and 1,719,045,680 H Shares, which accounted for 20.83% of the total number of
shares.
In June 2019, the GDR issued by the Company was listed and traded on the Main
Market of the London Stock Exchange. After the exercise of the over-allotment
option, the Company issued 82,515,000 GDR in total, representing the underlying
securities of 825,150,000 A Shares, after which the Company’s registered capital was
RMB9,076,650,000. The changes in share capital structure of the Company were as
follows: 7,357,604,320 A Shares, which accounted for 81.06% of the total number of
shares; and 1,719,045,680 H Shares, which accounted for 18.94% of the total number of
shares.
18
In September 2022, the Company completed the repurchase and cancellation of
1,060,973 restricted A Shares, after which the Company’s registered capital was
RMB9,075,589,027. The changes in share capital structure of the Company were as
follows: 7,356,543,347 A Shares, which accounted for 81.06% of the total number of
shares; and 1,719,045,680 H Shares, which accounted for 18.94% of the total number of
shares.
In September 2023, the Company completed the repurchase and cancellation of
925,692 restricted A Shares, after which the Company’s registered capital was
RMB9,074,663,335. The changes in share capital structure of the Company were as
follows: 7,355,617,655 A Shares, which accounted for 81.06% of the total number of
shares; and 1,719,045,680 H Shares, which accounted for 18.94% of the total number of
shares.
In January 2024, the Company completed the repurchase and cancellation of
45,278,495 restricted A Shares, after which the Company’s registered capital was
RMB9,029,384,840. The changes in share capital structure of the Company were as
follows: 7,310,339,160 A Shares, which accounted for 80.96% of the total number of
shares; and 1,719,045,680 H Shares, which accounted for 19.04% of the total number of
shares.
In September 2024, the Company completed the repurchase and cancellation of
2,082,559 restricted A Shares, after which the Company’s registered capital was
RMB9,027,302,281. The changes in share capital structure of the Company were as
follows: 7,308,256,601 A Shares, which accounted for 80.96% of the total number of
shares; and 1,719,045,680 H Shares, which accounted for 19.04% of the total number of
shares.
19
(II)
Organization Structure of the Company
Organization Structure of HTSC
Office of the Supervisory
Committee
Supervisory Committee
General Meeting
Compliance and Risk
Management Committee
Audit Committee
Development Strategy Committee
Nomination Committee
Remuneration and
Appraisal Committee
Wholly-owned
Subsidiaries
E-Capital Transfer Co., Ltd.
Bank of Jiangsu Co, Ltd.
Huatai-PineBridge Fund Management Co, Ltd.
China Southern Asset Management Co., Ltd.
Jiangsu Equity Exchange Co., Ltd.
Holding
Subsidiaries
Participating
Subsidiaries
Board of Directors
Senior Management
Office of the Board
of Directors
Huatai United Securities Co., Ltd.
Shanghai Shengju Asset Operation and
Management Co., Ltd.
Huatai Futures Co., Ltd.
Huatai Innovation Investment Co., Ltd.
Huatai Purple Gold Investment Co., Ltd.
Huatai International Financial
Holdings Company Limited
Huatai Securities (Shanghai) Asset
Management Co., Ltd.
Branches
Investment Advisory and
Development Department
Platform Operation Department
Financial Products Department
Wealth Management Department
Research Institute
Asset Custody Department
Debt Financing Department
Sales and Trading Department
Margin Financing and
Securities Lending Department
Securities Investment
Department
Financial Innovation
Department
Fixed Income Department
Operating Center
Information Technology
Department
Capital Operation Department
Digital Operation Department
Risk Management Department
Compliance and Legal
Department
Inspection Department
Human Resources Department
Planning and Finance
Department
General Office
Strategy and Development
Department
Party-mass Work Development
General Affairs Department
Securities Branches
Note: In January 2025, Jiangsu Equity Exchange completed the industrial and commercial registration
modification procedures for equity change. Currently, the Company’s shareholding in Jiangsu
Equity Exchange, which is a participating subsidiary of the Company, is 32%.
20
(III) The First-level Onshore and Offshore Subsidiaries of the Company
Unit: Ten Thousand Yuan Currency: RMB
Name of the subsidiary
Address
Date of
establishment
Registered
capital
Responsible
person
Telephone No.
Huatai United Securities
Co., Ltd.
Room 401, Building B7,
Qianhai Shenzhen-Hong Kong
Fund Town, No. 128 Guiwan
Fifth Road, Nanshan Street,
Qianhai Shenzhen-Hong Kong
Cooperation Zone,
Shenzhen, the PRC
1997-9-5
99,748.00
Jiang Yu
010-56839300
Huatai Securities (Shanghai)
Asset Management Co., Ltd.
Room 1222, 6 Jilong Road,
China (Shanghai) Pilot Free
Trade Zone
2014-10-16
260,000.00
Cui Chun
021-28972188
Huatai International Financial
Holdings Company Limited
62/F, The Center, 99 Queen’s
Road Central, Hong Kong,
the PRC
2017-4-5
HK$
10,200,000,002.00
Wang Lei
852-36586000
Huatai Purple Gold Investment
Co., Ltd.
No. 180 Hanzhong Road,
Nanjing, Jiangsu Province,
the PRC
2008-8-12
600,000.00
Cao Qun
025-83389999
Huatai Innovative Investment
Co., Ltd.
No. 234 Wuyi Road,
Changning District,
Shanghai, the PRC
2013-11-21
350,000.00
Sun Ying
010-58034345
Huatai Futures Co., Ltd.
10/F (whole floor),
No. 1 Mingzhu Third Street,
Hengli Town, Nansha District,
Guangzhou, the PRC
1995-7-10
393,900.00
Hu Zhi
020-83901155
Shanghai Shengju
Asset Operation and
Management Co., Ltd.
No. 12 Dongfang Road,
China (Shanghai)
Pilot Free Trade Zone
2009-7-14
12,100.00
Lu Chunguang
021-28972221
Jiangsu Equity Exchange
Co., Ltd.
3/F, Building 10, Financial City,
No. 377 Middle Jiangdong Road,
Jianye District, Nanjing,
Jiangsu Province, the PRC
2013-7-4
20,000.00
Zhang Anzhong
025-89620288
Note: In January 2025, Jiangsu Equity Exchange completed the industrial and commercial registration
modification procedures for equity change. Currently, the Company’s shareholding in Jiangsu
Equity Exchange, which is a participating subsidiary of the Company, is 32%.
21
(IV) Number and Distribution of Securities Branches and Other Branches of the
Company
As of the end of the Reporting Period, the Company has 27 securities branch offices
and 248 securities branches. For details of the number and distribution of branch offices
and securities branches of the Company, please refer to “Appendix II. List of Branch
Offices and Securities Branches” in this report.
Provinces,
Municipalities
and Regions
Number of
Securities
Branches
Provinces,
Municipalities
and Regions
Number of
Securities
Branches
Provinces,
Municipalities and
Regions
Number of
Securities
Branches
Anhui Province
5
Beijing
8
Inner Mongolia
Autonomous Region
3
Hebei Province
1
Fujian Province
4
Guangdong Province
24
Guangxi Zhuang
Autonomous Region
2
Hainan Province
2
Shanxi Province
1
Henan Province
3
Heilongjiang
Province
5
Jilin Province
3
Hubei Province
28
Hunan Province
3
Jiangxi Province
3
Jiangsu Province
93
Liaoning Province
7
Shandong Province
7
Shanghai
17
Sichuan Province
7
Guizhou Province
1
Chongqing
1
Tianjin
4
Gansu Province
1
Shaanxi Province
2
Qinghai Province
1
Xinjiang Uygur
Autonomous Region
1
Ningxia Hui
Autonomous Region
1
Zhejiang Province
10
VII. KEY ACCOUNTING DATA AND FINANCIAL INDICATORS
(I)
Key Accounting Data and Financial Indicators for the Past Three Years
Unit: Thousand Yuan Currency: RMB
Item
2024
2023
Increase/
decrease
(%)
2022
After
adjustment
Before
adjustment
Total revenue, other income and gains
54,285,483
52,260,421
3.87
46,824,372
46,824,372
Profit before income tax
15,352,340
14,204,664
8.08
12,228,038
12,228,038
Profit of this year – attributable to
shareholders of the Company
15,351,162
12,750,633
20.40
11,053,987
11,052,696
Net cash generated from/(used in)
operating activities
34,818,437
(28,475,553)
N/A
70,290,567
70,290,567
Total amount of other comprehensive
income after tax this year
597,755
315,999
89.16
1,195,949
1,195,949
22
Unit: Thousand Yuan Currency: RMB
Item
At the end
of 2024
At the end
of 2023
Increase/
decrease
(%)
At the end of 2022
After
adjustment
Before
adjustment
Total assets
814,270,494
905,508,389
(10.08)
846,570,990
846,567,016
Total liabilities
622,376,573
723,290,957
(13.95)
678,714,380
678,718,307
Total equity attributable to
shareholders of the Company
191,673,902
179,108,367
7.02
165,095,102
165,087,201
Total shareholders’ equity
191,893,921
182,217,432
5.31
167,856,610
167,848,709
Total share capital (shares)
9,027,302,281
9,074,663,335
(0.52)
9,075,589,027
9,075,589,027
Key Financial Indicators
Key financial indicators
2024
2023
Increase/
decrease
(%)
2022
After
adjustment
Before
adjustment
Basic earnings per share (RMB/share)
1.62
1.35
20.00
1.18
1.18
Diluted earnings per share (RMB/share)
1.62
1.33
21.80
1.16
1.16
ROE (%)
9.24
8.12
Increase of
1.12
percentage points
7.49
7.49
Debt-to-assets ratio (%)
Note 1
69.53
76.05
Decrease of
6.52
percentage points
75.81
75.81
Net assets attributable to the
Company’s ordinary shareholders
per share (RMB/share)
Note 2
18.10
16.91
7.02
16.24
16.24
Note 1: Debt-to-assets ratio = (total liabilities – accounts payable to brokerage clients)/(total assets –
accounts payable to brokerage clients).
Note 2: Net assets attributable to the Company’s ordinary shareholders per share were net of the effect of
perpetual bonds.
Description of key accounting data and financial indicators of the Company:
Since January 1, 2023, the Group has applied amendments to IAS 12, and
retrospectively adjusted the accounting statements for previous years. During the
Reporting Period, the application of other new IFRSs and the amendments to IFRSs
has had no material impact on the Group’s financial positions and performance for the
current and prior periods.
23
Net Capital of the Parent Company and Risk Control Indicators
Unit: Yuan Currency: RMB
Item
As of the end of the
Reporting Period
As of the end of the
previous year
Net capital
94,142,061,443.95
94,076,764,232.03
Net assets
160,886,314,922.70
155,053,212,660.64
Risk coverage ratio (%)
362.37
247.80
Net capital/net assets (%)
58.51
60.67
Net capital/liabilities (%)
27.25
22.15
Net assets/liabilities (%)
46.57
36.51
Value of proprietary equity securities and
derivatives/net capital (%)
26.98
28.58
Value of proprietary non-equity securities and
derivatives/net capital (%)
254.96
366.74
Core net capital
69,102,061,443.95
62,717,842,821.35
Supplementary net capital
25,040,000,000.00
31,358,921,410.68
Total risk capital provision
25,979,726,543.44
37,964,151,783.74
Total on-balance and off-balance assets
422,892,295,982.11
507,398,204,994.55
Capital leverage ratio (%)
18.05
13.98
Liquidity coverage ratio (%)
221.41
152.51
Net stable funding ratio (%)
150.36
130.84
During the Reporting Period, main risk control indicators of the Company such as
net capital were all in line with the regulatory requirements, and there were no such
circumstances where the risk control indicators violated the pre-warning standards or
were not in compliance with the provided standards.
(II)
Key Accounting Data and Financial Indicators for the Past Five Years
The financial conditions for the past five years are as follows:
1.
Profitability
Unit: Thousand Yuan Currency: RMB
Item
2024
2023
2022
2021
2020
Total revenue, other income
and gains
54,285,483
52,260,421
46,824,372
51,926,404
40,534,436
Total expenses
41,287,096
40,640,541
35,815,380
38,283,823
31,233,707
Share of profits of associates and
joint ventures
2,353,953
2,584,784
1,219,046
2,629,981
4,203,647
Profit before income tax
15,352,340
14,204,664
12,228,038
16,272,562
13,504,376
Profit of this year – attributable to
shareholders of the Company
15,351,162
12,750,633
11,053,987
13,346,106
10,822,497
24
2.
Assets
Unit: Thousand Yuan Currency: RMB
Item
December 31,
2024
December 31,
2023
December 31,
2022
December 31,
2021
December 31,
2020
Total assets
814,270,494
905,508,389
846,570,990
806,650,833
716,751,235
Total liabilities
622,376,573
723,290,957
678,714,380
654,615,049
584,439,200
Accounts payable to
brokerage clients
184,586,976
144,701,360
152,551,723
147,501,833
136,387,634
Total equity attributable
to shareholders of
the Company
191,673,902
179,108,367
165,095,102
148,422,810
129,071,500
Total equity
191,893,921
182,217,432
167,856,610
152,035,784
132,312,035
Total share capital
(shares)
9,027,302,281
9,074,663,335
9,075,589,027
9,076,650,000
9,076,650,000
3.
Key Financial Indicators
Item
2024
2023
2022
2021
2020
Dividend per share (RMB)
0.52
0.43
0.45
0.45
0.40
Basic earnings per share
(RMB/share)
1.62
1.35
1.18
1.47
1.20
Dilutive earnings per share
(RMB/share)
1.62
1.33
1.16
1.46
1.19
ROE (%)
9.24
8.12
7.49
9.84
8.61
Debt-to-assets ratio (%)
Note 1
69.53
76.05
75.81
76.93
77.20
Net assets attributable to
ordinary shareholders
of the Company per
share (RMB/share)
Note 2
18.10
16.91
16.24
15.25
14.22
Note 1:
Debt-to-assets ratio = (total liabilities – accounts payable to brokerage clients)/(total
assets – accounts payable to brokerage clients).
Note 2:
Net assets attributable to the Company’s ordinary shareholders per share were net of the
effect of perpetual bonds.
25
VIII.
DIFFERENCES IN FINANCIAL DATA PREPARED IN ACCORDANCE WITH
DOMESTIC AND FOREIGN ACCOUNTING STANDARDS
There is no difference between the net profit attributable to shareholders of the Company for
2024 and 2023 and the net assets attributable to shareholders of the Company as of December
31, 2024 and December 31, 2023 set out in the consolidated financial statements prepared
in accordance with the CASBE and in the consolidated financial statements prepared in
accordance with the IFRSs.
IX.
ITEMS MEASURED UNDER FAIR VALUE
Unit: Thousand Yuan Currency: RMB
Name of items
Balance at
the end of
last year
Balance at
the end of
the year
Change in
the current
period
Effect on the
profit of the
current period
in amount
Financial assets at fair value through
profit or loss
413,079,384
301,537,757
(111,541,627)
8,173,351
Equity instruments at fair value through
other comprehensive income
124,506
125,860
1,354
8,800
Debt instruments at fair value through
other comprehensive income
16,262,000
10,135,553
(6,126,447)
613,147
Derivative financial instruments
(621,760)
(952,660)
(330,900)
1,261,866
Financial liabilities at fair value through
profit or loss
52,671,166
40,448,332
(12,222,834)
(1,379,907)
26
MANAGEMENT DISCUSSION AND ANALYSIS AND REPORT OF THE BOARD
I.
DESCRIPTIONS OF OUR INDUSTRY DURING THE REPORTING PERIOD
Our Group conducts business operations in the securities industry, and the operating results
of such industry are closely related to the development trend of the capital market. Principal
businesses of the Group have always been focusing on capital market services, and its
performance is affected by multiple factors such as the domestic and overseas economic
environment, policy environment and market environment. During the Reporting Period, in
response to the needs of domestic and overseas clients, the Group leveraged on its efficient
full business chain system and leading digital financial development capabilities, continued
to enhance its advantage to provide diversified products and services across markets and
cycles, and continuously deepened its service model and operation model transition amidst
the complex and volatile market environment, thus maintaining a momentum of steady
development with positive outlook, with its major financial indicators and market position of
its principal business outperforming most peers in the industry. Details of industry position
of the Group’s principal businesses during the Reporting Period, please refer to the section
headed “Operation Discussion and Analysis” under the “Management Discussion and
Analysis and Report of the Board” in this report.
As China accelerates the strategic deployment of constructing a financial powerhouse,
focuses on advancing high-quality financial development and continues to deepen financial
system reform, it has provided programmatic and directional planning for the capital
market to move towards high-quality development. The construction of the top-level
system of the capital market will be more complete, and its role in servicing the overall
modernization development with Chinese characteristics and the transition and upgrading
of the real economy will be continuously enhanced. With the effective implementation of
the new guideline on strengthening regulation, forestalling risks and promoting the high-
quality development of the capital market (
新
“
國九條
”) and the “1+N” policy system of the
capital market, followed by a package of targeted incremental policies, as well as the solid
progress achieved in the “Five Major Areas of Finance” (
五篇大文章
) of financial work on
the capital market, China embarked on a new round of deepening reform across the capital
market. As the capital market function coordinated with investment and financing continues
to be improved, continuous efforts are made to develop an ecology of capital market that
encourages long-term investment, and the comprehensive service capacity of the multi-level
capital market system has been effectively enhanced. The securities industry is ushering in
a historic opportunity for high-quality development, which will also expose it to new risks
and challenges. Meanwhile, the high level of systematic opening up of the capital market,
the cultivation of first-class investment banks and investment institutions, the moderate
expansion of the space for high-quality institutional capital, as well as the policy guidance
of strengthening the fundamentals of the capital market and tightening supervision and
management, will also guide the securities companies to speed up the transformation and
upgrading of their business and management models, and to focus on the construction of
a professional, integrated and platform-based service system covering the entire life cycle
of their clients and the entire business chain, in order to give full play to their functions as
“service providers” of direct financing, “watchmen” of the capital market and “managers”
of social wealth. In addition, the increasingly complex and volatile internal and external
market environment has put forward higher requirements for integrated customer service and
intensive business operations in the securities industry, and high-quality securities companies
with leading capital strength, outstanding professional capabilities, solid customer base,
sound synergy mechanism, and integrated management and control at home and abroad will
have a greater competitive advantage.
27
II.
DESCRIPTIONS OF OUR BUSINESS DURING THE REPORTING PERIOD
The Group is a leading technology-driven securities group in the industry, with a highly
collaborative business model, a cutting-edge digital platform and an extensive and engaging
customer base. Our principal businesses comprise wealth management business, institutional
services business, investment management business and international business. The Group
constructs a client-oriented organizational structure and mechanism, provides comprehensive
securities and financial services for individual, enterprise and institutional clients from home
and abroad through a platform-based, integrated and international operation mode, and aims
to become a leading investment bank with strong domestic advantages and global influence.
1.
Wealth management business
We provide customers with diversified wealth management services, including
securities, futures and options brokerage, financial products sales, fund investment
advisory business, and capital-based intermediary business through mobile APP,
professional PC platforms, securities and futures subsidiaries and branch offices,
Huatai International and its affiliated overseas subsidiaries, in online and offline
modes, domestic and overseas linkage. For securities, futures and options brokerage,
we mainly execute trades on behalf of our clients in stocks, funds, bonds, futures and
options, etc. to provide trading services. For the financial products sales business, we
mainly provide customers with a variety of financial products sales services and asset
allocation services, and the related financial products are managed by the Group and
other financial institutions. Our fund investment advisory business mainly entails upon
acceptance of clients’ engagement, selecting specific category, amount and timing
of trading of investment funds on behalf of our clients within the scope of clients’
authorization in accordance with terms of agreement and submitting trading applications
including, among others, subscription, redemption and conversion. In respect of capital
based intermediary business, we provide diversified financing services including margin
financing and securities lending as well as stock pledged repurchase. Key performance
drivers to wealth management business include fee and commission income, interest
income, etc.
2.
Institutional services business
With investment banking serving as the traction and institutional sales serving as a link,
we integrate investment banking, institutional investor services and investment trading
business resources to provide various types of corporate and institutional clients with
all-round comprehensive financial services, which mainly include investment banking
business, prime brokerage business, research and institutional sales business and
investment and trading business.
28
(1)
Investment banking business primarily consists of domestic and overseas equity
financing, bond financing, financial advisory, OTC business, etc. For equity
financing business, we provide issuance and underwriting domestic and overseas
IPO, equity refinancing and depository receipts for our clients. For bond financing
business, we provide issuance and underwriting services including various types of
domestic and overseas bond financing and asset securitization for our clients. For
financial advisory business, we provide professional services including industrial
merger and acquisition, share acquisition, financing advisory, corporate restructure
and public offering of REITs for our clients. For OTC business, we provide clients
with NEEQ listing and follow-on financing services, and relevant OTC businesses
engaged in by Jiangsu Equity Exchange. Key performance drivers to investment
banking business include underwriting and sponsorship fees, financial advisory
fees, etc. for stocks, bonds and merger and acquisition business.
(2)
Prime brokerage business mainly includes the provision of asset custody and
fund services for various types of asset management institutions, such as private
and public funds, including settlement, liquidation, reporting and valuation. In
addition, it also provides transactions, margin trading, sales of financial products,
derivatives research and other value-added services for clients of prime brokerage.
Key performance drivers to prime brokerage business include fees for the fund
custody and service business.
(3)
Research and institutional sales business mainly consists of research business and
institutional sales business. For research business, we provide various professional
research and advisory services for clients from home and abroad. For institutional
sales business, we promote and sell diversified securities products and services to
various institutional clients. Key performance drivers to research and institutional
sales business include incomes from services concerning various research and
other institutions.
(4)
Investment and trading business mainly includes equity trading, FICC trading
and OTC derivative transactions. The Group conducts equity, FICC and other
financial instruments transactions, and reduces investment risks and increases
investment returns through various trading strategies and techniques. At the
same time, in order to meet customers’ needs for investment and financing as
well as risk management, we also engage in market making business and OTC
derivatives business. In terms of equity trading, we invest and trade stocks, ETFs
and derivatives, and engage in market making services for stocks in the STAR
Market, financial derivatives and financial products. In terms of FICC trading,
we invest and trade all kinds of FICC and derivatives in the interbank and
exchange bond markets, and engage in market making services for interbank and
exchange markets as well as carbon emissions trading. In terms of OTC derivative
transactions, we develop and trade OTC financial products for customers, mainly
including equity return swaps, OTC options and structured notes. Key performance
drivers to investment and trading business include investment incomes from
equity, FICC products and derivatives, etc.
29
3.
Investment management business
We accept fund entrustments from clients, develop and provide various financial
products for our clients and manage their assets through our professional investment
and research platform as well as our substantial client base, effectively satisfying
their investment and financing needs. Our investment management business mainly
consists of securities firm asset management, private equity fund management and
asset management for fund companies, etc. For securities firm asset management, we
participate in the operation of securities firm asset management business through our
wholly-owned subsidiary Huatai Asset Management; such business includes collective
asset management business, single asset management business, specialized asset
management business and public offering fund management business (which is operated
on a differentiated basis from our public offering fund management business for fund
companies under the Group). For private equity fund management business, we operate
private equity funds business, which includes investment and management of private
equity funds, through our wholly-owned subsidiary Huatai Purple Gold Investment.
For asset management business for fund companies, the Group holds non-controlling
interests in two public offering fund management companies, namely China Southern
Asset Management and Huatai-PineBridge, through which we participate in the
operation of asset management business for fund companies. Key performance drivers
to asset management business include management fee income, investment income, etc.
4.
International business
In overseas markets and with Huatai International as its holding platform for
international business, the Group operates international business through the
wholly-owned subsidiaries of Huatai International including Huatai Financial Holdings
(Hong Kong), Huatai Securities (USA) and the Singapore Subsidiary. Based on the
Hong Kong market, it steadily deploys on the US, Europe, the Southeast Asia and other
major markets.
(1)
The operations of the Group in Hong Kong are mainly conducted by Huatai
Financial Holdings (Hong Kong), a wholly-owned subsidiary of Huatai
International, which comprehensively connects with full business chain system
of the Group and provides one-stop cross-border integrated financial services for
domestic and foreign customers.
(2)
Huatai Securities (USA) owns the US broker-dealer license and the US proprietary
trading license. It also obtained the business qualification for securities trading
with institutional investors in Canada and market access to major stock exchanges
in Europe. It became an introducing broker for US futures products, and was
qualified as a broker and dealer for US Treasuries and a limited underwriting
member of the Nasdaq Stock Market in the United States.
(3)
The Singapore Subsidiary owns the licenses on capital market services and the
waiver of licensing requirements on wealth management advisory issued by
Monetary Authority of Singapore and conducts securities trading and corporate
financing businesses.
Key performance drivers to international business include wealth management income,
investment banking income, investment income, asset management income, etc.
30
III.
AWARDS AND HONORS
(I)
Key awards and honors of the Group
The selection of “2023 Financial Technology Development Award” held by the
People’s Bank of China:
“CAMS Big Data Intelligent Credit Investment Research Platform Project” and
“Jian Fu” (
簡富
), the Digital Due Diligence Platform for Investment Bank, won the
second prize
The selection of “2024 Golden Bull Award for the Securities Industry” (2024
年度證
券業金牛獎
) held by China Securities Journal (
《中國證券報》
):
The Company was awarded “Golden Bull Award for Financial Technology of
Securities Companies” (
證券公司金融科技金牛獎
), etc.
The selection of “Collection of Best Practice Case of Board of Directors of Public
Companies 2024” (2024
年度上市公司董事會最佳實踐案例徵集活動
) held by China
Association for Public Companies:
The Company was awarded “Best Practice Case of Board of Directors of Public
Companies 2024” (2024
年度上市公司董事會最佳實踐案例
), etc.
The selection of “Jinding Award” (
金鼎獎
) held by National Business Daily (
《每日經
濟新聞》
):
The Company was awarded “2024 Outstanding Cultural Construction Case” (2024
年度優秀文化建設案例
), “2024 Best Typical Case of Rural Revitalization” (2024
年
度最佳鄉村振興經典案例
), etc.
31
(II)
Key awards and honors of the business segments of the Company
Wealth
management
business
Shanghai Stock Exchange:
The Company was awarded “2023 Top 10
Options Brokers” (2023
年度十佳期權經紀商
),
etc.
HKEX:
The Company was awarded “2023
Outstanding Broker Award of Hong Kong Stock
Connect” (2023
年度港股通卓越券商獎
), “2023
Outstanding ETF Broker Award of Hong Kong
Stock Connect” (2023
年度港股通
ETF
卓越券商
獎
), “2023 Mainland Broker Award for Long-term
Contributions to Security Data” (2023
年度長期
貢獻證券數據內地券商獎
), etc.
The selection of “2024 Junding Award in China’s
Securities Industry” (2024
年度中國證券業君鼎
獎
) organized by Securities Times (
《證券時報》
):
The Company was awarded “2024 Junding
Award for All-round Wealth Management Broker
in China’s Securities Industry” (2024
年度中國
證券業全能財富經紀商君鼎獎
), “2024 Junding
Award for All-round Digital Transformation in
China’s Securities Industry” (2024
年度中國證券
業數字化轉型全能君鼎獎
), etc.
“ZhangLe Fortune Path” (
漲樂財富通
)
was awarded “2024 Junding Award for Wealth
Management Service Brand in China’s Securities
Industry” (2024
年度中國證券業財富服務品牌君
鼎獎
), “2024 Junding Award for Digital Pioneer
Application in China’s Securities Industry” (2024
年度中國證券業數字化先鋒
APP
君鼎獎
), etc.
The 20th anniversary special selection of the
“Yinghua Award” (
英華獎
) for ETF organized by
China Fund News (
《中國基金報》
):
The Company was awarded “Excellent ETF
Liquidity Service Provider” (
優秀
ETF
流動性服
務商
), “Excellent ETF Seller” (
優秀
ETF
銷售商
),
etc.
Shenzhen Stock Exchange:
The Company was awarded “2023
Outstanding Options Brokers” (2023
年度期權優
秀經紀商
), etc.
The selection of the “Second Session of Golden
Bull Award for Fund Investment Advisory
Institutions” (
第二屆基金投顧機構金牛獎
)
organized by China Securities Journal (
《中國證券
報》
):
The Company was awarded the “Golden Bull
Award for Fund Investment Advisory Institutions”
(
基金投顧機構金牛獎
), etc.
The selection of the “Huazun Award” (
華尊獎
)
organized by Cailian Press (
《財聯社》
):
The Company was awarded “Award for Best
Institution in Wealth Management” (
最佳財富管
理機構獎
), “Award for Best Wealth Management
Practice” (
最佳財富管理實踐獎
), “Award for
Best Investment Advisory Team” (
最佳投顧團隊
獎
), etc.
The selection of the “Jinding Award” (
金鼎獎
)
organized by National Business Daily (
《每日經濟
新聞》
):
The Company was awarded “2024 Most
Comprehensive Wealth Management Broker”
(2024
年度最佳財富管理綜合實力券商
), “2024
Most Distinctive Broker for Fund Investment
Advisory Services” (2024
年度最具特色基金投顧
服務券商
), etc.
The selection of the “2024 Yinghua Award for
Brokers in China” (2024
年度中國券商英華獎
)
organized by China Fund News (
《中國基金報》
):
The Company was awarded “2024
Outstanding Broker Demonstration Institution for
Wealth Management” (2024
年度優秀券商財富
管理示範機構
), “2024 Outstanding Investment
Advisor Demonstration Institution” (2024
年度
優秀投顧示範機構
), “2024 Outstanding Broker
Demonstration Institution for Fintech” (2024
年度
優秀券商金融科技示範機構
), etc.
“ZhangLe Fortune Path” (
漲樂財富通
) was
awarded “2024 Outstanding Broker Application
Demonstration Institution” (2024
年度優秀券商
APP
示範機構
), etc.
32
Institutional
services
business
Shanghai Stock Exchange:
The Company was awarded “Rating A in
Comprehensive Evaluation on Stock Market
Makers on the STAR Market in 2024” (
科創板股
票做市商
2024
年度綜合評價
A
評級
), “Rating
AA in Comprehensive Evaluation on Main Market
Makers for Shanghai-Listed Funds in 2024” (
滬
市上市基金主做市商
2024
年度綜合評價
AA
評級
), “2023 Outstanding Stock Market Maker
on the STAR Market” (2023
年度優秀科創板
股票做市商
), “2023 Outstanding Market Maker
for Funds” (2023
年度優秀基金做市商
), “2023
Outstanding Market Maker for Public REITs”
(2023
年度優秀公募
REITs
做市商
), “2023
Outstanding Market Maker for Bonds and ETFs”
(2023
年度優秀債券
ETF
做市商
), etc.
Huatai United Securities was awarded “2023
Outstanding Supporting Unit for Comprehensive
Services and Consultancy for SOEs” (2023
年度
央企綜合服務諮詢支持傑出單位
), etc.
The selection of the “Seventeenth Session of Best
Investment Bank” (
第十七屆最佳投行
) organized
by NewFortune (
《新財富》
):
Huatai United Securities was awarded “Best
Domestic Investment Bank” (
本土最佳投行
),
“Best Investment Bank in Practicing ESG” (
最
佳踐行
ESG
投行
), “Best Investment Bank in
Equity Underwriting” (
最佳股權承銷投行
), “Best
Investment Bank in Bond Underwriting” (
最佳債
權承銷投行
), “Best IPO Investment Bank” (
最佳
IPO
投行
), “Best Refinancing Investment Bank”
(
最佳再融資投行
), “Best Investment Bank in
Mergers and Acquisitions” (
最佳併購投行
), “Best
Investment Bank in Corporate Bonds” (
最佳公司
債投行
), “Best Investment Bank in Asset-Backed
Securitization (ABS)” (
最佳資產證券化
(ABS)
投
行
), “Best Investment Bank in Serving Overseas
Markets” (
海外市場能力最佳投行
), etc.
The selection of “2024 Junding Award in China’s
Securities Industry” (2024
年度中國證券業君鼎
獎
) organized by Securities Times (
《證券時報》
):
Huatai United Securities was awarded “2024
Junding Award for All-round Investment Banking
in China’s Securities Industry” (2024
年度中國證
券業全能投行君鼎獎
), “2024 Junding Award for
M&As and Reorganization Financial Advisory in
China’s Securities Industry” (2024
年度中國證券
業併購重組財務顧問君鼎獎
), etc.
Shenzhen Stock Exchange:
The Company was awarded “Rating AA in
Evaluation on Liquidity Services for Shenzhen-
Listed Funds in 2024” (
深市基金
2024
年度
流動性服務評價
AA
評級
), “Excellent Fund
Liquidity Service Provider of 2023” (2023
年度
優秀基金流動性服務商
), “Excellent Participant
in the Innovation in Bond Trading Business of
2023” (2023
年度債券交易業務創新優秀參與機
構
), “Excellent Bond Market Making Institution”
(
優秀債券做市機構
), “Excellent Institution for
Cross-Market Bond Trading” (
優秀跨市場債券交
易機構
), etc.
Huatai United Securities was awarded
“Outstanding Intermediary for Fixed Income
Innovative Products of 2023” (2023
年度固定收
益創新產品優秀中介機構
), etc.
The selection of the “SRP China Awards 2023”
organized by Structured Retail Products, a
provider of structured products market consulting:
The Company was awarded “Best
Performance-Securities House”, “Deal of the
Year”, “Best Derivative Manufacturer-Securities
House”, etc.
China Foreign Exchange Trade System:
The Company was awarded “Institution with
Market Influence of the Year” (
年度市場影響力
機構
), “Market Innovative Business Institution”
(
市場創新業務機構
), “Derivatives Innovation
Award” (
衍生品創新獎
), “Automated Trading
Award” (
自動化交易獎
), “Star of Bond Carry
Trade Strategy” (
債券利差交易策略之星
), etc.
The selection of the “Jinding Award” (
金鼎獎
)
organized by National Business Daily (
《每日經濟
新聞》
):
Huatai United Securities was awarded “2024
Best Manager among Brokers and Investment
Banks” (2024
年度券商投行最佳管理人
), “2024
Innovation Leadership Project Award” (2024
年度
創新引領項目獎
), etc.
33
Investment
management
business
Shanghai Stock Exchange:
Huatai Asset Management was awarded
“Outstanding Manager for Asset Securitization
Business for 2023” (2023
年度資產證券化業務優
秀管理人
), etc.
China Southern Asset Management was
awarded “2023 Top Ten ETF Managers” (2023
年
度十佳
ETF
管理人
), etc.
The selection of “2024 Junding Award in China’s
Futures Industry” (2024
年度中國期貨業君鼎獎
)
organized by Securities Times (
《證券時報》
):
Huatai Futures was awarded “2024 Junding
Award for Leading Futures Company in China”
(2024
年度中國領軍期貨公司君鼎獎
), “2024
Junding Award for Outstanding IT Service Futures
Company in China” (2024
年度中國傑出
IT
服務
期貨公司君鼎獎
), etc.
The selection of “ChinaVenture 2023 Annual
Rankings” (
投中
2023
年度榜單
) held by
ChinaVenture Investment:
Huatai Purple Gold Investment was awarded
“Best Chinese Private Equity Investment
Institutions TOP20” (
中國最佳私募股權投資機
構
TOP20), “Best Chinese-funded Private Equity
Investment Institutions TOP20 in China” (
中國最
佳中資私募股權投資機構
TOP20), “Best Chinese
Subsidiaries of Brokers for Private Funds TOP
10” (
中國最佳券商私募基金子公司
TOP10),
“Best Institutions for Investment in Medical
Devices Fields TOP20 in China’s Medical and
Health Service Industry” (
中國醫療及健康服務
產業最佳醫療器械領域投資機構
TOP20), “Best
Institutions for Investment in Medical Services
Fields TOP10 in China’s Medical and Health
Service Industry” (
中國醫療及健康服務產業
最佳醫療服務領域投資機構
TOP10), “Best
Institutions for Investment in Biomedical Fields
TOP30 in China’s Medical and Health Service
Industry” (
中國醫療及健康服務產業最佳生物醫
藥領域投資機構
TOP30), etc.
Shenzhen Stock Exchange:
Huatai Asset Management was awarded
“Outstanding Manager for Special Asset-backed
Plans for 2023” (2023
年度優秀資產支持專項計
劃管理人
), “Outstanding Fixed-income Product
Duration Management Institution” (
優秀固定收益
產品存續期管理機構
), etc.
China Southern Asset Management was
awarded “2023 Outstanding Bond Investment and
Trading Institution” (2023
年度優秀債券投資交易
機構
), “2023 Outstanding ETF Research Support
Award” (2023
年度優秀
ETF
研究支持獎
), etc.
The selection of “2024 Junding Award in China’s
Securities Industry” (2024
年度中國證券業君鼎
獎
) organized by Securities Times (
《證券時報》
):
Huatai Asset Management was awarded “2024
Junding Award for All-round Asset Management
Agency in China’s Securities Industry” (2024
年
度中國證券業全能資管機構君鼎獎
), etc.
The 20th anniversary special selection of the
“Yinghua Award” for ETF organized by China
Fund News (
《中國基金報》
):
China Southern Asset Management was
awarded “Outstanding ETF Manager” (
優秀
ETF
管理人
), etc.
Huatai-PineBridge was awarded “Outstanding
ETF Manager” (
優秀
ETF
管理人
), etc.
The selection of the “Eighth Session of Golden
Bull Award for Equity Investment in China” (
第
八屆中國股權投資金牛獎
) organized by China
Securities Journal (
《中國證券報》
):
Huatai Purple Gold Investment was awarded
“Golden Bull Broker and Outstanding Institution
for Equity Investment” (
金牛券商股權投資卓越
機構
), etc.
34
International
business
The Asset (
《財資》
):
Huatai International was awarded “Best
Corporate and Institutional Advisor (Broker) in
Hong Kong Area” (
香港地區最佳企業和機構顧
問
(
券商類
)), “Best Private Bond Advisor Award”
(
最佳私募債券顧問獎
),“Best IPO (J&T)” (
最
佳
IPO (
極兔
)), “Best Sustainable Bond (Local
Government)” (
最佳可持續債
(
當地政府
)),“Best
Green Bond (Financial Institution)” (
最佳綠
色債
(
金融機構
)), “Best Mobile Brokerage
Application” (
最佳手機券商
APP), “Annual
Multi-asset Management Company” (
年度多資產
資管公司
), etc.
Asian Private Banker (
《亞洲私人銀行家》
):
Huatai International was awarded “Best
Wealth Manager – the Greater Bay Area (
最佳財
富管理機構 － 大灣區
)”, “Best Wealth Manager –
Ultra-high Net Worth Customers (
最佳財富管理
機構 － 超高淨值客戶
)”, “Best Wealth Manager –
Digital Innovation (
最佳財富管理機構 － 數字化
創新
)”, etc.
Euromoney (
《歐洲貨幣》
):
Huatai International was awarded “Best
Securities House in Hong Kong” (
香港地區最佳
投行獎
), “Best for Equities in Hong Kong” (
香港
地區最佳股票業務獎
), etc.
Bloomberg Businessweek (
《彭博商業周刊》
):
Huatai International was awarded
“Outstanding Initial Public Offering Project
Award” (
首次公開招股項目卓越大獎
)”,
“Corporate Financing Excellence Award in the
Greater Bay Area” (
大灣區企業融資卓越大獎
),
“Excellence Award for Digital Innovation” (
數
碼創新卓越大獎
), “Excellence Award for Risk
Management” (
風險管理卓越大獎
), “Excellence
Award for High-net-worth Products/Service” (
高
淨值產品 ╱ 服務卓越大獎
), “Annual Outstanding
Technology Securities Company Award” (
年度
科技證券公司卓越大獎
), “Annual Outstanding
Financial Derivatives Institution Award” (
年度金
融衍生產品機構卓越大獎
), etc.
The selection of the “Fifth Session of Best
Investment Bank” (
第五屆最佳投行
) organized
by Wind:
Huatai Financial Holdings (Hong Kong)
was awarded “Best H-Share IPO Sponsor” (
最
佳港股
IPO
保薦人
), “Best H-Share IPO Global
Coordinator” (
最佳港股
IPO
全球協調人
), “Best
H-Share IPO Bookrunner” (
最佳港股
IPO
賬簿管
理人
), “Best H-Share Refinancing Underwriter”
(
最佳港股再融資承銷商
), “Best Chinese USD
Bond Underwriter” (
最佳中資美元債承銷商
), etc.
35
IV.
ANALYSIS OF CORE COMPETITIVENESSES DURING THE REPORTING PERIOD
(I)
A first-class comprehensive securities group firmly committed to the path of
high-quality development
The Group firmly strode forward with the development of the times and resonated with
national strategies. It focused on its main responsibility and business, strengthened
its functions and positioning, adhered to the principle of integrity and innovation,
proactively seized the opportunities in market reform, strove to build a first-class
investment bank with both local advantages and global influence and continued to
promote the Group’s high-quality development to be at the forefront of the industry.
It has achieved historical breakthroughs in market-based, digital and international
development, embarked on a differentiated development path and ranked among the
leaders in the industry in terms of comprehensive strength. In recent years, the Group
saw its major business continue to improve in terms of volume and scale and market
rankings, and its asset and liability structure continue to optimize, and has made
new breakthroughs in diversified business development and international business
expansion. The asset size and profitability of the Group ranked in the forefront of the
industry. The Group maintained its leading position in the industry in terms of the
development of wealth management, investment banking, investment and trading and
other core businesses. The unique and differentiated advantages of asset management
business continued to strengthen; and overseas business has become an important
growth engine, ranking it the top place among Chinese-funded securities firms in terms
of comprehensive strength. As the first international securities group listed in Shanghai,
Hong Kong and London, the Group has developed the first-class brand image with wide
influence and recognition in domestic and overseas markets. The MSCI ESG rating of
the Company has maintained the highest level among domestic securities companies
since 2021 and raised from AA to AAA in 2024, achieving two consecutive years of
level-up to the highest rating in the global investment banking industry. During the
Reporting Period, Standard & Poor’s kept the long-term issuer rating of “BBB+” with
stable prospect for the Group and its subsidiary Huatai International, which is the
highest level among Chinese-funded securities companies.
(II) Platform-based, integrated and international service systems covering the full
business chains
The Group always adheres to the original intention of customer services and the
fundamentals of financial services, focuses on the financial needs and changes of
individual, institutional and corporate customers, and continuously promotes the
upgrading of organization with “One Customer” internally, “One Huatai” externally
and the “integrated operation” internally and externally. Following the policy of
giving priority to the “Five Major Areas of Finance” (
五篇大文章
) of financial
work, it focuses on building a platform-based, integrated and international system
covering the full business chains and a new development model. In the field of
wealth management customer services, following the core direction of creating value
for customers, the Group has established and improved the vertically integrated
operation system and development model driven by the headquarters and linked with
the headquarters and branches, optimized and enhanced its customer management
capability, and continuously strengthened its classified and tiered service system for
customers. It stuck to build its content platform-driven professional service capability,
36
and actively explored and advanced the integration of new artificial intelligence
technology with its wealth management business, consolidating and strengthening the
leading position and professional brand influence of wealth management services in
the industry. In the field of institutional customer services, the Group continued to
cement the base of the globally integrated institutional service platform, and made
every effort to enhance its professional financial capabilities in asset pricing, research,
trading and product creation, so as to better meet the service needs of institutional
clients in cross-border investment and trading, and to continue to expand and deepen
its customer service. In the field of corporate customer services, it always served
corporate growth with perspectives and logics of industry, constantly strengthened
industrial insight, asset knowledge and pricing ability, and actively built a globalized
asset and industrial network. Through constantly tapping into TMT, general health,
energy and environmental protection, high-end manufacturing and other key industrial
ecosystems, it fully improved comprehensive services in domestic and overseas markets
on various products, facilitated the development and global expansion of various
outstanding enterprises and actively served the development of the real economy and
the establishment of modern industrial systems, contributing more Huatai power in
supporting the development of new productive forces.
(III) Technology development advantages continuously leading digital financial reform
of the industry
Technology empowerment has been the core competitiveness developed by the Group
for years with key inputs and a main development line leading its transformation
and transcendence. In 2019, the Group firstly initiated the comprehensive digital
transformation in the industry, resolutely took the path of platform-based business
development and adopted digital thinking and means to fully transform business
and management models and facilitate the implementation of the digital operation
thinking in all levels of pre-, middle-and post ends. Meanwhile, it joined all parties
in building an open ecosystem and developing fintech platforms and products at the
industry level. Through transformation practice and capability accumulation, the
Group has developed technology into the differentiated development feature leading
the digital financial reform in the industry as well as the core driver to improving
value creation capability and market competitiveness. Relying on the industry-leading
independent research and development capability on information technology and the
innovation capability on digital products, the Group continuously promoted the deep
integration of business with technology. In terms of the platform-based business, the
Group developed industry-leading retail and institutional customer service systems
centered on “Zhang Le” (
漲樂
) and “Xing Zhi” (
行知
), built a series of business
work platforms with industry foresight such as “AORTA” (
聊
TA), “QingCloud” (
青
雲
), “Investment Banking Cloud” (
投行雲
) and “Capital Management Cloud” (
資管
雲
), and constructed “CAMS”, “FICC Elephant Trading Platform” (FICC
大象交易平
台
), “Securities Lending Path” (
融券通
), “RIS” (
睿思
) and a series of other important
platforms that led industry innovation and development in key areas such as trading
and investment research, which effectively facilitated the reshaping of business models
and developed distinctive market leading advantages in various business areas. In terms
of application intelligence, the Group actively embraced and deployed cutting-edge AI
technology, accelerated the construction of large model capabilities and large model
platform systems, and continuously explored the creation of value applications in
typical scenarios, thereby being equipped with basic capabilities in application building,
model management and production deployment, and initially achieving application
37
and implementation in multiple scenarios such as intelligent research reports,
intelligent research and development and intelligent investment advisory. In terms of
internationalization empowerment, the Group continued to strengthen the platform
capability support for the international deployment expansion of key businesses,
actively promoted the construction of an integrated next-generation trading system
both at home and abroad, and its self-developed Global Trading Platform (GTP) had
officially been put into operation.
(IV) International development capability at the leading edge of high-level two-way
opening up
Based on the advantages of local resources in China and leveraging on its deep
understanding of the Chinese market and assets, the Group fully seized strategic
opportunities in the continuous deepening of the high-level opening up. In the course
of deepening services for domestic customers in “going global” and overseas customers
in “coming to China”, the Company steadily expanded its business layout in global
mainstream markets and key regions, and actively promoted the integrated operation
and management of its main businesses both at home and abroad. With the Hong
Kong market as the bridgehead and cross-border businesses as drivers, the Group
vigorously developed the capital market intermediary business and fully enhanced the
comprehensive financial service capability on cross-border and integrated operation,
embarking on a differentiated path of international development. The Group grasped
strategic opportunities in deepening the opening and interconnection of the Chinese
capital market to step up its pace of going global and became the first Chinese company
issued GDRs through the Shanghai-London Stock Connect and listed on the London
Stock Exchange. It established Huatai Securities (USA) and the Singapore Subsidiary,
obtained various key business licenses in major overseas markets. In recent year in
particular, the Group further expanded its presence in mature markets such as Japan
and emerging markets such as Vietnam, and gradually developed a global value chain
system with the coverage and interconnected development of the Mainland, Hong
Kong, the US, the UK, Singapore and other markets in Asia, Europe and America. It
continuously deepened its participation and influence in major international markets and
significantly enhanced the execution capability on integrated projects covering different
markets, assets and products. It stands among the leading Chinese-funded securities
firms in Hong Kong in terms of overall strength and walks in the forefront in going
global among Chinese-funded securities firms. In recent years, the Group’s international
business effectively responded to the impacts of the complicated and changeable
environment in international markets and maintained the development momentum with
steady progress against the market trend. Going global has become a new engine driving
the Group’s high-level development and opening up room for growth.
(V)
Comprehensive compliance and risk control systems with professional and digital
accumulation
The Group always adheres to the development concept that “compliance is the bottom
line and risk management is the capability”, deepens the building of capabilities on
digital compliance and risk control and management and strives to implement and
improve the integrated and group-level compliance and risk management structure
and system. With the target of “three-dimensional compliance management with
risk as the orientation and data as the basis” and leveraging on “driven by data,
unified platform and empowering business”, the Group firstly promoted the building
38
of digital compliance in the industry to develop the basis for the professional and
efficient digital compliance capability. It continuously strengthens the construction of
three-dimensional compliance, vigorously explores the establishment of cross-border
and integrated compliance control systems, comprehensively solidifies the integrated
compliance management mechanism of the Group, constantly improves the compliance
value creation capability and cements the compliance bottom line in international
development. Meanwhile, the Group adheres to the risk management culture targeting
stability and long-term development, upholds the risk management concept with full
participation, coverage and penetration, and continues to improve the comprehensive
risk management system adapting to the integrated and international development of
the full business chains. It strives to enhance the Group’s risk management capabilities
in both domestic and overseas markets, strengthens the risk management mechanism
and control measures, focuses on the research and development and iteration of risk
management tools, and enhances risk management capabilities across the board with the
empowerment of platform. The Group follows the market closely and keeps abreast of
business, takes active prevention measures, strengthens risk management and control
in high-risk areas and key businesses, enhances the foresight and effectiveness of risk
management, and safeguards the bottom line of business risks to ensure the sound
development of the business.
(VI) Development platform empowering overall growth of first-class and professional
talents
The Group always adheres to the “people-oriented” concept, continuously stimulates the
vitality of talents and constantly upgrades the value of talents. It constructs an integrated
platform for the comprehensive growth and development of talents, establishes a
professional talent cultivation and development system based on the platform, focuses
on the introduction of outstanding talents and increasingly improves the talent richness
to facilitate the common growth of outstanding talents with organizations and convert
talent advantages into core competitive advantages. The Group continuously improves
the mechanism of market-oriented selection and employment and effectively carries
out the tenure system and contractual management of senior management. Senior
management members practically conduct exploration with a forward-looking horizon
and lead all staff of Huatai to constantly create new chapters in development and
vigorously promote the advancement and progress in the development of the Group. The
Group insists on implementing the strategy of building a strong enterprise with talents,
always adheres to the talent selection and appointment mechanism with the orientation
of capabilities and contributions, establishes and improves the all-round, multi-layered
and three-dimensional talent supply chain systems and talent cultivation mechanisms
with the characteristics of Huatai. The Group insists on cultivating outstanding young
talents in the market and practice, actively gathers a number of industry leading talents
to build a team of high-quality managers and professionals with international vision and
cross-border business experience, and works to fully stimulate and maintain the vitality
of the talent team. Meanwhile, the Group proactively guides employees to constantly
enhance awareness on rules, cherish occupational reputation, carry forward professional
spirit and abide by business ethics to refresh the fine tradition of the staff the Huatai
in continuous iteration and development and provide solid guarantees of talents to the
strategic advancement of the Group.
39
(VII) Cultural value system with positive and win-win spirit for common progress
After over 30 years of development, the Group has achieved transformation and
advancement towards an international securities group. Culture has been the spiritual
force in its development and the value orientation leading to its growth and progress.
Bearing in mind the mission and responsibility and upholding patriotism, Huatai people
dare to pioneer, to compete for the first and to make breakthroughs with concerted
efforts despite the environment. After years of integration and evolving, the Company
gradually developed the cultural characteristics of “technology empowerment,
innovation and initiative” and an “open and inclusive” cultural atmosphere. The
Company insists on improving the “hard strength” in development with the “soft
power” in culture and deeply establishes and implements the corporate spirit of
“openness, inclusiveness, innovation, struggle and responsibility”. In recent years,
the Company actively cultivated financial culture with Chinese characteristics and
deeply practiced the cultural concepts of the securities industry. In combination with
its own development conditions and led by the establishment of a featured cultural
brand system, it solidly advanced cultural construction and developed the cultural value
systems and the cultural work systems with internal cohesion, external brand as well as
distinctive features through system building, themed activities, publicity and training,
awards and other forms. Meanwhile, the Company developed the cultural and brand
matrix with the integration of Party building culture, technology culture, compliance
culture and risk culture, and continuously enhanced the internal and external recognition
and penetration of culture, achieving the deep integration of cultural building with
corporate governance, development strategies and development models as well as the
organic combination with the overall development of people, the historical and cultural
inheritance and the building of professional capabilities. Through the continuous
promotion of the Company’s cultural and value systems and the constant forging of the
spiritual force, it shaped the grounding for the steady and long-term development of the
Company’s businesses, making the positive and win-win spirit an important guarantee
to the development of the Company in different cycles and the establishment of
international competitiveness, and consolidating the cultural foundation for high-quality
development and establishment of a first-class investment bank.
40
V.
OPERATION DISCUSSION AND ANALYSIS
Unit: Thousand Yuan Currency: RMB
Segment
Segment
revenue
and other
income
and gains
Segment
expenses
Segment
results
Segment
profit
margin
(%)
Year-on-
year
change of
segment
revenue
and other
income
and gains
(%)
Year-on-
year
change of
segment
expenses
(%)
Year-on-year
change of
segment
profit margin
Wealth management business
23,808,741
(17,586,912)
6,221,829
26.13
2.07
5.73
Decrease of 2.55
percentage points
Institutional services business
8,169,556
(7,172,421)
997,160
12.21
(22.56)
(9.30)
Decrease of 12.83
percentage points
Investment management business
2,659,847
(1,530,117)
362,631
13.63
(20.81)
(3.71)
Decrease of 39.95
percentage points
International business
18,193,615
(11,260,104)
6,942,152
38.16
40.59
5.74
Increase of 20.61
percentage points
Others (including offset)
1,453,724
(3,737,542)
828,568
57.00
(30.32)
(3.19)
Increase of 18.55
percentage points
Segment total
54,285,483
(41,287,096)
15,352,340
28.28
3.87
1.59
Increase of 1.10
percentage points
(I)
Overall operation conditions
In 2024, against the backdrop of a global economy full of challenges and variables,
China’s economy demonstrated strong resilience and stability in general. Solid
progress was achieved in high-quality development and efforts were made to speed
up fostering new productive forces. At the same time, the Third Plenary Session of
the 20th CPC Central Committee and the new guideline on strengthening regulation,
forestalling risks and promoting the high-quality development of the capital market (
新
“
國九條
”) have mapped out the direction of the reform and development of China’s
capital market, bringing both new opportunities and challenges to the operation
and development of securities companies. In the face of the complex internal and
external business environment, the Group adhered to its functional positioning, and
closely followed the “1+N” policy system of the capital market to serve the national
strategic goals. It consolidated the foundation for high-quality development, adhered
to its customer-centric principle, and made concrete efforts in the “Five Major
Areas of Finance” (
五篇大文章
) of financial work. Moreover, it firmly deepened
the “two-pronged” (
雙輪驅動
) development strategy of wealth management and
institutional services empowered by science and technology, continued to strengthen
the strategic layout of its international business, built its core competitiveness through
the cycle, and constructed a sound customer service system linking the whole business
chain. Key initiatives included: in terms of wealth management, the Group took
“creating value for customers” as the core, made further progress in constructing an
integrated customer management system in a hierarchical manner, and solidified the
middle platform of finance and platform-based operation system, striving to enhance
professional wealth management service capabilities; in terms of institutional services,
41
the Group, in response to policy and market changes and to meet the demands for
financial services of institutional customers, focused on enhancing multi-product,
full-chain, and full cycle operation capabilities for comprehensive customer value
through platform-based empowerment and international expansion; in terms of corporate
customer services, focusing on national strategic emerging industries, the Group fully
integrated the service resources across the entire business chain, promoted continuous
improvements in corporate governance and operation quality with professional services,
and actively empowered the modernization of industrial system and the accelerated
development of new productive forces; in terms of international development, the Group
further expanded its presence in mature and emerging markets, actively assisted Chinese
customers to “go global” and “bring in” overseas customers with its cross-border
integrated comprehensive service system, so as to better serve the high-level opening
up of finance; in terms of digital finance, the Group continued to promote the building
of platform capabilities in each area and overseas layout and operation, continuously
expanded new business and operating models by relying on technological empowerment,
built an open technological cooperation ecosystem, actively explored the application
of AI technology in professional financial service scenarios, and unleashed new
momentum created by the integration of “business + technology”. Meanwhile, the Group
further promoted comprehensive risk management and full compliance management,
implemented intensive and refined operation and management, and continuously
consolidated the foundation for higher quality and efficiency and steady development.
During the Reporting Period, the Group’s operation results reached a record high and its
overall strength continued to rank among the top among leading securities companies,
with high-quality development continuing to deepen.
In 2025, the Group will focus on the main business of capital market service, adhere
to the main responsibility of providing financial services to the real economy, and
firmly deepen the “two-pronged” core development strategy of wealth management
and institutional services empowered by science and technology. It will accelerate the
iterative upgrading of the business model, taking into account the continuously evolving
financial service demands of individual, corporate and institutional clients, and make
every effort to build an integrated and comprehensive service capability covering major
global markets and with synergies across the business chain. It will unleash the in-depth
value of its clients and business, and continue to make progress in terms of revenue
capacity, financial technology strength and international development level.
(II) Wealth management business
1.
Market environment
In recent years, China’s wealth management market has shown a development
trend of continuous expansion of scale, increasingly complex competitive
landscape and continuous innovation of products and services. Under the new
policy, market and technology environment, the underlying logic of asset
allocation and service model of the wealth management industry is undergoing a
profound evolution. Buyer side investment consultants are paying more attention
to meeting customers’ deep-seated wealth management needs and improving
customer experience in all aspects; “Cross-boundary Wealth Management
Connect” (
跨境理財通
) has entered the 2.0 stage, expanding the channels and
categories of offshore asset allocation for more customers; and the accelerated
iteration and application of new technologies represented by AI are profoundly
affecting the development trend of the wealth management industry.
42
In 2024, the A shares market curbed before an upsurge, presenting an overall
pattern of shock and differentiation. According to the statistics from Wind
Information, the total turnover in the A share market was RMB257.01 trillion,
representing a year-on-year increase of 21.17%. As the development of margin
financing and securities lending business became increasingly standardized, the
market size increased, and the balance of margin financing and securities lending
business across the market was RMB1,864.583 billion, representing a year-on-year
increase of 12.94% according to the statistics from Wind Information. For fund
investment advisory business, with more diversified business models, the business
enjoyed a considerable development potential. According to the statistics from the
Asset Management Association of China, in the second half of 2024, the existing
scale of equity funds of top 100 fund sales institutions was RMB4,851.8 billion,
the existing scale of funds in non-monetary markets was RMB9,536.7 billion, and
the existing scale of stock index funds was RMB1,703.9 billion. With a sounder
product system in place, the domestic futures market exhibited steady growth in its
trading scale. According to the statistics from the China Futures Association, the
total turnover of the futures markets across the country was RMB619.26 trillion,
representing a year-on-year increase of 8.93%. Given increasingly diversified
and personalized customer demands and more intense competition from peers
and other industries, it is necessary for wealth management institutions to build
a refined customer management system, a brand-based product operation system
and a professional investment advisory service system to provide customers with
all-asset, full-cycle and integrated financial services and continue to expand the
space for sustainable development. At the same time, it is also important to take
the initiative to embrace new technologies and integrate into the new ecosystem,
steadily promote the innovation of service models and operation modes, and
actively explore new space for development.
2.
Operational measures and achievements
(1)
Securities, futures and options brokerage business and wealth management
service
During the Reporting Period, the Group proactively adapted to changes
in the market environment and customers’ needs and worked on building
an operation system based on customer classification and stratification to
create professional and brand-based services that target groups such as mass
customers, wealth management customers, high-net-worth customers and
entrepreneurial customers. It actively promoted the efficient response and
precise delivery of its services, thereby expanding the scale of customers
and assets. The Group consistently updated the construction of financial
middle platform to actively build a high-quality and matrix-type content
service system driven by a professional financial kernel. It continuously
improved the service system of professional investment tools and strategies,
and accumulated new driving forces for business development to create
differentiated advantages in inclusive financial services. The Group
actively promoted the development of vertically integrated customer-centric
operations, created a service-driven customer growth model and built a
customer growth strategy with integrated financial services as its core
competitiveness. Moreover, it continued to optimize its customer structure,
deepened its customer group management ability, and pushed for the
43
realization of customers’ entire-life-cycle service companion. It continued
to expand its cross-border business opportunities and constantly enhance
its cross-border financial service capabilities, and was approved as one of
the first batch of securities companies to participate in the “Cross-boundary
Wealth Management Connect” (
跨境理財通
) business on a pilot basis, with
the cross-border integrated business linkage mechanism further optimized.
It has established a sound investment advisory service system featuring both
standardized paradigm and personalized advantages, continuously improved
professional training, platform empowerment and incentive guidance
mechanism, and actively built a professional and high-quality investment
advisory team to continuously enhance the effective coverage of clients and
the depth of asset allocation. According to internal statistics, as of the end
of the Reporting Period, the number of the Company’s staff registered for
carrying out securities investment consultancy (investment advisory) with
the Securities Association of China was 3,480.
The Group gave full play to its financial expertise and fintech advantages,
continued to improve its digital and intelligent wealth management platform,
and constantly optimized its platform-based operation strategy and service
system. On the basis of the empowerment of the financial capability middle
platform, the Group empowered clients and investment consultants in
terms of investment research, content, operation and marketing, as well as
compliance control, which has effectively enhanced the content quality and
professional kernel of the investment advisory services, and provided clients
with asset allocation services that integrate resources from the entire business
chain. During the Reporting Period, for “ZhangLe Fortune Path”, the Group
continued to deepen the application of AI technology, continuously enriched
the core customer service scenarios, made efforts to improve the special
services such as ETF projects, asset allocation and “Investment-leading
Officers” (
領投官
), and upgraded and iterated the branded “i Kan” (i
看
)
financial content platform, further improving the platform-based content
service system and customer operation model, and effectively enhancing
customers’ professional trading and financial service experience.
The Group continued to maintain its advantages in trading services based
on advanced platforms. In terms of ETF business, it actively created tools
covering various product options, product analysis and trading strategies
to guide clients in long-term allocation and improve their investment
experience. In terms of stock options brokerage business, it continued to
enhance its trading support capabilities, continued to cultivate qualified
investors and strengthened risk management, thus maintaining its leading
position of this business in the market.
For the futures brokerage business, as of the end of the Reporting Period,
Huatai Futures had 9 futures branches and 42 futures branches in total
covering 4 municipalities directly under the Central Government and 17
provinces in China, being the agent of 146 types of futures. The Group
continued to strengthen the link between its securities and futures businesses,
with 244 securities branches permitted to be engaged in Futures IB Business
as of the end of the Reporting Period.
44
(2)
Financial product sales and fund investment advisory business
During the Reporting Period, the Group proactively constructed an integrated
asset allocation service system based on buyers’ perspective with meeting
customers’ needs for diversified wealth management as the guidance,
professional investment and research of financial products as the cornerstone
and intelligence and platform as business drivers, coordinated and promoted
the development of financial product sales, allocation, fund investment
advisory and other business and provided customers with diversified
portfolio strategies and products allocation solutions. According to internal
statistics, during the Reporting Period, the number of financial products
held (except for the cash management product “Tian Tian Fa” (
天天發
))
was 16,760, and their sales scale (except for the cash management product
“Tian Tian Fa” (
天天發
)) was RMB503.991 billion. The fund investment
advisory business grew steadily, with a business scale of RMB18.079 billion
as at the end of the Reporting Period. According to the statistics from the
Asset Management Association of China (
中國證券投資基金業協會
) in the
second half of 2024, the Company’s equity public funds maintained a scale
of RMB120.2 billion, the funds in the non-monetary market maintained a
scale of RMB166.6 billion, and the equity index funds maintained a scale of
RMB108.7 billion, all ranking second in the securities industry.
During the Reporting Period, with the focus on the differentiated and
multi-level demands of classified and stratified customers for asset allocation
and with the buyer side investment advisory business as the core, the Group
continued to enrich and improve the supply system of financial products. It
established an allocation supply matrix for buyer side investment advising
based on various dimensions, continued to enhance the product selection
and risk prevention and control capabilities, and provided multi-dimensional
solutions from the selection of single products to the allocation of strategies
and tailor-made allocation. It further improved the buyer side investment
advisory allocation system, intensified the research and application of
diversified assets allocation, and optimized the “Worry-free Families” (
省
心家族
) allocation service, providing open selection service for publicly
offered products through “Worry-free Choice” (
省心選
), strategy service
based on publicly offered funds through “Worry-free Investment” (
省心投
),
and personalized allocation solutions for customers through “Worry-free
Enjoyment” (
省心享
). It continuously optimized the advisory service system
of buyer-side investment advising, fostered the “Investment-leading Officers”
(
領投官
) service model, provided professional support with the asset
allocation service platform as the base, and continuously improved its ability
in three-dimensional companion services covering the entire business cycle
to enhance customer experience. It enhanced the capability construction of
digital platforms, continued to build the core middle platform system for
buyer-side investment advising, established an open factor research and
strategy algorithm platform, and iteratively upgraded the account diagnosis
and asset allocation tools; it actively explored the application scenarios of AI
large model-enabled product allocation, and enhanced the business support of
investment research to investment advisors through the full connection with
investment advisor service workflows, so as to enhance the overall business
efficiency and capability of empowerment.
45
(3)
Capital-based intermediary business
During the Reporting Period, for its capital-based intermediary business,
the Group actively responded to changes in business rules and the market
environment, and continued to build a customer-oriented and integrated
securities financial ecosystem delivering products and covering all
operations. It strengthened intelligent risk control and conducted its business
in a compliant and prudent manner; and it constructed a service system
covering the entire lifecycle of customers through digitalization, and built up
a core business advantage by responding efficiently to customers’ requests
through the linkage of the entire business chain. For its margin financing
business, the Group continued to deepen customer operation on a classified
and stratified basis and constantly optimized service solutions and service
tools to effectively promote customer acquisition and revenue growth, thus
achieving steady growth in business market share; and for its securities
lending business, it fully implemented the requirements of regulatory
policies, strengthened the supervision of customers’ trading behaviors and
continuously improved the internal control mechanism, so as to consolidate
the base of compliance. According to the regulatory statement data, as of the
end of the Reporting Period, the balance of margin financing and securities
lending business of the Parent Company was RMB130.107 billion, ranking
second in the industry, and the integral maintenance guarantee ratio was
259.50%. The pending repurchase balance of stock pledged repurchase
business was RMB16.201 billion in total, with an average fulfillment
guarantee ratio of 235.21%, among which, the pending repurchase balance
of on-balance-sheet business was RMB3.980 billion, with an average
fulfillment guarantee ratio of 232.21%; while the pending repurchase balance
of off-balance-sheet business was RMB12.221 billion.
3.
Prospect for 2025
For wealth management business, the Group will adhere to the core of “creating
value for customers” and continue to optimize and iterate platform functions and
business scenarios to promote empowerment of its financial capability middle
platform and upgrading of its service capability. It will deepen and refine customer
operation capability, actively explore new customer growth models guided by
professional content and operation services and leverage on the comprehensive
financial services to satisfy the diversified investment needs of customers and
practically enhance customers’ service experience. The Group will fully harness its
strengths in the entire business chain, deepen the implementation of the classified
and stratified customer service system, strengthen the integrated domestic and
overseas operation model and supporting operation capabilities, build a content
service matrix covering the multiple needs of customers, and take the opportunity
of the “Cross-boundary Wealth Management Connect” (
跨境理財通
) to actively
create a new ecosystem of domestic and overseas wealth management services.
It will actively build a differentiated training and professional certification
system throughout the entire life cycle of investment advisors, aiming to set
up a professional investment advisory team for clients. It will continuously
optimize the buyer side investment advisor business model and effectively
enhance the effectiveness of wealth management services to provide clients with
entire-life-cycle operation companion services. Taking advantage of the Group’s
46
financial expertise and fintech strength, the Group will seize the opportunity of
AI development to promote the continuous construction of the financial capability
middle platform and in-depth professional empowerment, through which it will
effectively identify customers’ needs and match their investment service strategies,
continue to build up professional service capabilities driven by the content
platform, and facilitate the operation of wealth management business and service
coverage.
For the financial product sales and the fund investment advisory businesses, the
Group will integrate resources in the entire business chains, actively expand the
basic capabilities of its digital platform and continuously enhance the operation
and service system construction of its buyer side investment consultancy
business. In this regard, it will continue to explore and push the incubation of
“Investment-leading Officers” (
領投官
), expand and upgrade its cross-border
product lines, work on building up a full-spectrum product matrix, and enhance
the professional investment research and asset allocation service capabilities of
its investment consultants in multiple dimensions, in order to provide customers
with diversified solutions for financial product allocation and intensify customer
companion services to improve their investment experience.
For the capital-based intermediary business, the Group will continue to deepen the
integrated securities and financial ecosystem, optimize differentiated marketing
policies and diversified marketing tools, build up platform service capabilities
in a forward-looking manner, enrich the business system and enhance customer
stickiness. For its margin financing business, the Group will continue to refine
its customer transaction services, establish an all-round financing customer
service system, keep enhancing customers’ experience with platform services and
innovative products, and press ahead institutional financing through the whole
business chain; and for its securities lending business, the Group will continue
to strictly adhere to the compliance bottom line and implement regulatory
requirements, so as to maintain the steady development of its business in a
regulated manner.
(III) Institutional services business
1.
Market environment
In 2024, most of the major indexes in the domestic stock market showed picking
up. The Wind All China Index rose by 10.00%, CSI 300 rose by 14.68%, the
Shanghai Composite Index rose by 12.67% and the Shenzhen Component Index
rose by 9.34%; the bond market continued the upward trend amid fluctuations,
with the CSI Aggregate Bond Index and the China Bond Composite Full-price
(Aggregate) Index increased by 8.82% and 4.98%, respectively. In the face of
the new changes in the market environment, with the effective implementation of
the new guideline on strengthening regulation, forestalling risks and promoting
the high-quality development of the capital market (
新
“
國九條
”) and the “1+N”
policy system of the capital market, the development and growth of patient capital
and the encouraged entering of medium-and long-term capital into the market,
the ecosystem of capital market development continued to be reshaped. The
increasingly integrated, differentiated and cross-border clients’ demand has also
put forward higher requirements on the development of the institutional service
business, while at the same time, the cooperation and service models between
47
securities companies and various institutions have also been changing profoundly.
Accurate identification of customers’ demands and provision of full-chain,
integrated and customized service solutions will become important directions for
upgrading the service business of institutions to a higher level.
In 2024, China’s equity financing market experienced an overall decline in its
scale. According to the statistics from Wind Information, fund raised on the
full caliber, including IPOs, additional offering and share allotment, totaled
RMB312.967 billion, representing a year-on-year decrease of 69.69%, among
which, funds raised from IPOs were RMB66.280 billion, representing a year-on
year decrease of 81.54%; and funds raised from refinancing were RMB246.687
billion, representing a year-on-year decrease of 63.38%. The bond financing
market maintained a growth momentum with the total amount of bond issuance of
RMB79,862.476 billion, representing a year-on-year increase of 12.41%. M&A
market transaction activity declined, but there has been a significant increase
in the number of deals in the pipeline and the first disclosure of reconstructing
proposals since the fourth quarter. According to the statistics from Zero2IPO
Research Center private placement department (
清科研究中心私募通
), the
number of M&A cases in the M&A market in China was 2,335, representing a
year-on-year decrease of 12.02% and the amount of transactions was RMB600.090
billion, representing a year-on-year decrease of 39.06%. With the rolling out of the
“Sixteen Measures for the Capital Market to Serve the High-level Development
of Technology Enterprises” (
支持科技十六條
), “Eight Measures on Deepening
Reform of the SSE STAR Market to Serve Technological Innovation and
Development of New Productive Forces” (
科創板八條
), “Opinions on Deepening
Market Reform through Merger, Acquisition and Restructuring of Listed
Companies” (
併購六條
) and other measures and policies, high-quality resources
in the market continued to gather in the field of new productive forces. A
securities company will have a more significant competitive advantage if it could
grasp the development logic of emerging industries and future industries with a
global vision, improve the comprehensive service system covering the needs of
enterprises in their entire life cycle, and promote the improvement of both quality
and efficiency of the real economy and the development of new productive forces.
2.
Operational measures and achievements
(1)
Investment banking business
During the Reporting Period, aiming to serve the high-quality development
of the real economy, the Group developed its business with providing
support for the self-reliance in advanced technology and the development
of new productive forces as the original and ultimate objectives, focused
on high quality customers to provide domestic and overseas integrated
platform-based services covering the entire business chain, thus enhancing its
overall market competitiveness and actively building a first-class investment
banking service system boasting with local strengths and international
perspective. In the evaluation on the quality of securities firms’ practices in
investment banking, bond business and financial advisory businesses in 2024
released by the Securities Association of China, Huatai United Securities
was rated A in terms of each category.
48
Consolidated data
Currency: RMB
Categories of Issuance
2024
2023
Times of
lead underwriting
(time)
Lead
underwriting
amount
(in RMB10
thousand)
Times of
lead underwriting
(time)
Lead
underwriting
amount
(in RMB10
thousand)
Issue of new shares
9
853,812.05
20
1,735,477.09
Additional issue of new shares
8
768,133.85
31
3,778,198.31
Allotment of shares
–
–
1
58,536.44
Issue of bonds
2,726
68,030,238.22
2,569
66,618,500.08
Total
2,743
69,652,184.12
2,621
72,190,711.92
Note:
The above data are from the regulatory statements, while the statistical caliber is
the issuance completion date of the project; preferred shares are included in the
additional newly issued shares; bonds issuance includes treasury bonds, enterprise
bonds, corporate bonds (including exchangeable bonds), convertible bonds,
short-term financing bonds and medium-term notes, etc., but it excludes asset-backed
securitization projects.
①
Equity financing business
During the Reporting Period, the equity financing business adhered
to the entire business chain strategy of focusing on industries,
making regional layout and deeply exploring customers, maintaining
its leading position in terms of the ranking and market share in the
industry. Focusing on serving new productive forces and technological
innovation, it has completed a number of financing projects with
market influence and sponsored in 2 of the top 10 IPO projects and
participated in 2 of the top 10 refinancing projects in the whole
market. According to the statistics from Wind Information, the
Group’s equity lead-underwriting amount (including IPOs, additional
offerings, allotment of shares, preferred shares, convertible bonds and
exchangeable bonds) was RMB54,897 million, ranking second in the
industry; its A-share IPO lead-underwriting amount was RMB8,538
million, ranking second in the industry; its IPO lead-underwriting
numbers in the STAR Market and ChiNext were 3 and 4, respectively,
with lead-underwriting amounts of RMB2.784 billion and RMB3.022
billion respectively, both ranking first in the industry.
②
Bonds financing business
During the Reporting Period, the bonds financing business continuously
adhered to serving the high-quality development of the real economy.
On the basis of strict risk control, it fully utilized its full license
advantage, actively cultivated core customer groups and maintained its
position in the industry. The Group actively served national strategies,
focused on leading quality clients and promoted the issuance of green
49
bonds and technological innovation bonds, underwriting a total of 59
green bonds with RMB15.698 billion and 136 technological innovation
bonds with RMB35.013 billion. According to the statistics from Wind
Information, the Group’s lead-underwriting amount of full variety
bonds was RMB1,296.048 billion, ranking third in the industry.
According to the statistics from the Securities Association of China,
the actual bidding for local government bonds won by the Company
amounted to RMB34,558 million and the actual binding for areas won
by the Company was 33, both ranking first in the industry.
③
Financial advisory business
During the Reporting Period, the Group actively kept abreast of policy
changes and industry trends, supported listed companies for quality
development and insisted on serving technological innovation and
new productive forces by practically carrying out diversified financial
advisory business. The Group leveraged on its M&A and restructuring
business as an opportunity to provide differentiated service to
customers, strengthened its M&A and restructuring business brand
and enhanced the stickiness of its quality customers in the industry.
According to the statistics of public information disclosed by listed
companies, the number of auditing restructuring projects disclosed for
the first time for which the Group acted as the independent financial
adviser was 4, ranking first in the industry. During the Reporting
Period, the Group continued to lead the innovation of domestic and
overseas M&A with its professional ability, completing the 3Peak
restructuring project using directional convertible bonds as payment
instruments, which was the first case after the new regulations on
directional convertible bonds, and the acquisition of Minsheng
Securities by Guolian Securities, which was the first market-based
M&A project among securities companies after the Central Financial
Work Conference. It completed cross-border M&A projects such as the
acquisition of a subsidiary of SK Chemicals in South Korea by Yako
Technology, the acquisition of an oil and gas equipment manufacturer
in Singapore by Nanjing Develop Advanced Manufacturing Co., Ltd.,
empowering Chinese enterprises to expand into the global market.
④
OTC business
During the Reporting Period, the Group actively leveraged on the
connection path between the NEEQ and the Beijing Stock Exchange,
fully displayed the integrated advantage as a large investment bank and
continued to provide technological innovation-based growth enterprises
with multi-layered capital market services. During the Reporting
Period, the Group completed four projects listing on the NEEQ, three
projects receiving consent letters for listing and four projects under
review for listing. Jiangsu Equity Exchange constantly strengthened
compliance and risk management, continued to build a comprehensive
investment and financing service platform, actively promoted the
regional equity market systems and business innovation pilots,
officially set up a special board for “specialized and sophisticated
50
enterprises that produce new and unique products”, and implemented
the transfer business of shares of private equity and venture capital.
The business scenarios for stock options were continuously enriched,
and the incubation service system for listing and board transfer was
optimized and improved, so were the diversified and comprehensive
financial service capabilities. As of the end of the Reporting Period,
16,948 enterprises have been listed and displayed (of which 1,226
were on the special board for “specialized and sophisticated enterprises
that produce new and unique products”). It had 82,213 investors of
all types, and it raised RMB24.299 billion for enterprises through
financing during the Reporting Period.
(2)
Prime brokerage (PB) business
During the Reporting Period, the Group efficiently integrated the resources
of the full business chains, enhanced technology empowerment relying on
the digital and platform-based development strategy, gave full play to the
data value of underlying assets, and provided the institutional customer
base with integrated and entire-life-cycle comprehensive financial services,
with an aim to build up the core competitiveness based on operation. As
of the end of the Reporting Period, the Group had 13,159 fund products in
custody and the total size of fund in custody reached RMB419.782 billion.
We provided administration services to 19,151 fund products (including
1,159 products from Huatai Asset Management), of which the service scale
reached RMB1,190.810 billion (including the business scale of Huatai Asset
Management of RMB417.598 billion). According to the statistics from the
Asset Management Association of China (
中國證券投資基金業協會
) in the
fourth quarter of 2024, the Group ranked the fourth in the industry in terms
of the number of products filed under the private fund custody business.
(3)
Research and institutional sales business
During the Reporting Period, in terms of research business, the Group
firmly promoted the transformation of business models and continued to
improve the research team allocation and the research service system and
continuously deepened the cooperation efficiency of the entire business
chain. It focused on leading institutional customers, deeply tapped into the
research value, and carried out multi-dimensional research service activities
to facilitate the high-quality development of business. The Group adhered to
the international business strategy, continued to strengthen the construction
of overseas service platforms, continuously improved the matrix of overseas
research series products and reach carriers, effectively expanded the service
coverage of clients and targets in key overseas regions, and promoted the
layout of cross-border research services in a multi-dimensional manner.
It continuously upgraded and iterated the digital platform, constantly
consolidated the application of investment and research foundation,
continued to optimize functions such as intelligent research reports, further
improved the production and management processes of research reports,
continuously enhanced the quality and efficiency of the research business
and digital operation capabilities, and strove to strengthen the empowerment
of the research business. The Group has actively carried out various forms
51
of research service activities, including releasing 12,311 research reports
(including those in English), organizing 56,373 research roadshow services
and 878 thematic teleconferences, and holding investment strategy summits,
investors exchanges and other featured and thematic meetings.
In terms of the institutional sales business, the Group deeply aligned it
to the diversified needs of institutional investors, continuously enriched
institutional service products and contents, and continued to promote the
construction of institutional investor working platform and trading platform,
so as to consolidate an integrated and platform-based institutional customer
service system in the whole business chain; it accelerated the international
process by actively broadening its presence in the overseas market, and took
advantage of team synergy and resource endowment both at home and abroad
to continue to build up a differentiated competitive advantage. It strove to
build the brand power and market influence of its business, with its service
ranking of leading strategic customers rising against the trend. During the
Reporting Period, the volume of sub-position transactions for the public
funds was RMB1,311.732 billion.
(4)
Investment and trading business
①
Equity trading business
During the Reporting Period, the Group actively adapted to changes
in the market and regulatory environment, continuously iterated and
upgraded its multi-level, specialized and multi-strategy investment
and trading system on absolute gains. With big data trading business,
macro-hedging business and innovative investment business as the
core, it constantly improved its platform-based business system and
business model, so as to effectively enhance its professional investment
and trading capacity and risk control capability. The Group actively
built a trading-centric business system, constructed and improved a
three-dimensional quantitative monitoring framework of “market +
strategy”, and continuously strengthened the market adaptability and
risk-resistant capability of its quantitative strategies, so as to fully
grasp market opportunities. It continued to improve the depth and
foresight of its investment research, further standardized its investment
framework system and continued to enhance its core investment
research capabilities. It continued to exploit the field of cutting-edge
IT technology to further consolidate the technological barriers of the
platform, constantly optimize the performance of the investment trading
business platform and facilitate the accumulation of investment and
research capability and the improvement of process management. In
terms of the market making and trading business, the Group focused on
the updating and iteration of market making and trading strategies and
systems, actively expanded the boundary of market making business,
continuously explored business coordination models and improved
risk control systems, thus maintaining sound business operation. As
of the end of the Reporting Period, the Group has filed a total of 126
52
market-making stocks for the market making of stocks on the STAR
Market and provided market making services for a total of 589 ETF
funds and 42 REITs funds for the market making of listed funds, both
ranking among the top in the market.
②
FICC trading business
During the Reporting Period, the Group proactively promoted the
construction of a cross-border integrated platform, upgraded and
iterated its transaction service capacity and financial product supply
capability, and continuously empowered its business development to
serve the real economy and high-level opening up. In terms of the
fixed-income proprietary investment business, the Group practiced an
absolute return strategy, focused on strategy research and development
and upgrading and forging of core trading and pricing capabilities,
and adjusted trading strategies and asset positions in accordance with
market dynamics, so as to continue to stabilize profitability. In terms
of market making business, it focused on building a “systematic,
automated and strategic” market making system for spot bonds and
obtained the qualification as a preferred quoter in iDeal and an auto
market maker in Xbond for spot bonds, with market making quotation
channels increasingly enriched, market marking service boundary
expanded and the scale of market making for major varieties ranking at
the forefront of the industry. In terms of bulk commodity and foreign
exchange business, the Group continuously strengthened research on
strategies and transactions, put into practice overseas bond hedging
trading business, and constructed the ability to provide diversified
carbon financial products and trading services for both domestic and
overseas markets, with the foundation for diversified development
continuously solidified. As for the FICC Elephant Trading Platform
(FICC
大象交易平台
), the Group actively built an integrated framework
featuring research, model strategy, trading risk control and customer
service, with the digital level of strategy research and development
comprehensively upgraded and the FICC trading model reshaped and
optimized. According to the statistics from the Securities Association
of China, the scale of credit protection tools created by the Group was
RMB4,680 million, ranking first in the industry.
③
OTC derivatives trading business
During the Reporting Period, the Group adhered to the principle of
“aiming at serving the real economy and being guided by satisfaction of
customers’ risk management needs” in conducting its OTC derivatives
trading business, continued to deepen integrated compliance and risk
control, emphasized on professional capacity building, and continued to
cultivate its core competencies in hedging transactions, product design
and pricing, and customer service, so as to continuously consolidate
the foundation of its main responsibilities and business. It steadily
enhanced its business innovation capability, upgraded and optimized
its product structure, and continuously solidified its transaction
53
advantages. It also effectively expanded the depth and breadth of its
customer coverage, actively explored growth points for transactions
in offshore markets, and provided customers with a full range of
derivatives trading services with more diversified investment and
risk management tools. Furthermore, the Group improved its digital
and platform-based service system at a faster pace, actively built its
transaction-driven, customer-demand oriented and platform-enabled
core competencies, and facilitated the accumulation, upgrading and
transformation of its core business competencies. According to the data
calibers in the regulatory statement SAC agreement, as of the end of
the Reporting Period, the Group had 7,868 income swap transaction
business contracts with an ongoing size of RMB84.699 billion; the
Group had 1,867 OTC option trading business contracts with an
ongoing size of RMB134.558 billion. During the Reporting Period,
the Group issued 2,891 income receipts through the China Securities
Internet System and OTC market, with a total amount of RMB32.061
billion.
3.
Prospect for 2025
For investment banking business, based on its profound insights into industries,
enterprises and assets, the Group will give full play to the traction of the entire
business chain and to the role of the Group as a portal for quality assets, so as to
continuously enhance its core competitive advantages in market-based innovation
and cross-border integration and synergy, and build up a first-class investment
banking service capability with international competitiveness. With firm focus
on key industries, it will expand the layout of strategic emerging industries and
future industries, accommodate customers’ domestic and overseas financial
service needs with full-market and full-cycle services covering all products
and business chains, and build a globalized industrial network to give effective
support to Chinese enterprises in their overseas layout, and provide better services
to the real economy and the development of new productive forces. In terms of
equity financing business, the Group will continue to strengthen the strategy of
industry focus and regional cultivation, actively build quality projects with market
influence, and promote the leading market share in relevant industries and regions.
In terms of bond financing business, the Group will continue to improve its value
judgement ability to continuously enhance the quality of its projects and improve
customer selection criteria, focus on quality customers, and strictly control
business risks. In terms of the M&A and restructuring financial advisory business,
the Group will give full play to its business advantages, actively expand its license
and non-license business, strengthen its business brand by setting up market
benchmark cases, and enhance the stickiness of industrial quality clients.
For research and institutional sales business, the Group will focus on the changing
needs of key institutional clients, continue to increase the breadth and depth of
customer coverage, optimize and improve the classified and stratified institutional
service system that integrates the whole business chain, and continue to deepen
the platform-based empowerment and systemic division of labor. It will steadily
promote its international strategy, actively build a global institutional customer
network and an internationalized institutional product system, and make efforts
54
on building integrated and comprehensive financial service capability across on
– and off-market and domestic and offshore markets, so as to further enhance its
industry position and market influence.
For investment trading business, the Group will continue to build platform-based
and systematic investment and trading capabilities, improve the customer-oriented
business structure and service system, practically upgrade and transform toward
the orientation of enhancing asset pricing rights and productization of trading
capabilities and constantly boost the core competitiveness. In terms of equity
trading business, the Group will continue to be based on the three core business
lines of big data trading, macro hedging and innovative investment, consolidate
the advantageous business barriers, expand new markets, enrich new varieties
and develop new strategies. It will actively lay out the overseas market, continue
to promote the construction of systems and platforms to be internationalized and
intelligent, and enhance the core ability to obtain scaled, diversified and absolute
returns. In terms of FICC trading business, the Group will continue to practice the
cross-border integration strategy, promote the integration of domestic and overseas
businesses and overall balance sheet planning, actively explore new directions
for business growth, continue to build an integrated FICC trading platform, and
continuously improve the transaction pricing capability and investment research
capability. In terms of OTC derivatives trading business, the Group will strengthen
the construction of the digital platform, continue to enhance the professional
trading and hedging capabilities and full-chain customer service capabilities,
continuously optimize the product design, actively expand the overseas business,
continue to consolidate the competitive advantages of differentiation, and provide
high-quality services to meet the demands of customers for risk management and
asset allocation.
(IV) Investment management business
1.
Market environment
In recent years, China’s asset management industry has been expanding in its
scale, and indexing investment has been developing rapidly. At the same time,
with the further promotion of the reform of fees for public funds, the continuous
improvement of the requirements for the standardized operation of private
funds and the full implementation of the personal pension system, the industry
has entered into a new period of high-quality transformation and development,
with a new pattern of business development featuring in-depth competition and
cooperation and improved quality and efficiency taking its form at a faster pace.
According to the statistics from Asset Management Association of China (
中
國證券投資基金業協會
), as of the end of the fourth quarter of 2024, the total
amount of asset management products of fund management companies and their
subsidiaries, securities companies and their subsidiaries, futures companies and
their subsidiaries and private fund management institutions was RMB72.85
trillion, among which, the amount of public funds was RMB32.83 trillion and the
amount of private asset management products of securities companies and their
subsidiaries was RMB6.10 trillion. With the arrival of a low-interest rate era, in
order to become a first-class investment institution, we must return to the origin
of asset management services, adhere to the investor-oriented approach and focus
on enhancing active management capabilities, and more importantly, we should
55
provide customers with high-quality product series with more comprehensive
risk-return characteristics and richer categories by optimizing the product
structure, innovating the investment strategies and enhancing the service level, so
as to create differentiated competitive advantages.
In 2024, the private equity market as a whole continued its downward trend,
with capital further gathered to strategic emerging industries and technology
enterprises. Meanwhile, with the introduction of policies such as “Policy Measures
to Promote High-quality Development of Venture Capital Investment” (
創投十
七條
) and “New Policy on Central Enterprise Venture Capital Fund” (
央企創
投基金新政
), the “fund-raising, investment, management and exit” (
募投管退
)
process continued to circulate. A new market ecosystem of “long-term capital for
long investment” (
長錢長投
) is expected to gradually take shape. According to
the statistics from Zero2IPO Research Center private placement department, in
2024, 3,981 new funds were raised in China’s equity investment market, with a
total fundraising amount of RMB1,444.929 billion, representing a year-on-year
decrease of 20.80%; and there were 8,407 investment cases (after eliminating
cases with extreme value) in China’s equity investment market, with a total
investment amount of RMB603.647 billion, representing a year-on-year decrease
of 10.35%. With the increasing improvement of regulatory rules on private funds,
it is more necessary for private equity institutions to uphold long-termism, insist
on investing in companies at an early stage, companies with small size, companies
with long-term prospects and companies with strong technology, cultivate patient
capital to sustainably empower enterprises to develop, and expand new investment
models and create distinctive strengths in supporting the development of new
productive forces.
2.
Operational measures and achievements
(1)
Asset management business of securities companies
During the Reporting Period, Huatai Asset Management, a wholly-owned
subsidiary of the Group, actively adapted to changes in the market and
regulatory environment. Always adhering to the customer-oriented
philosophy and the development mission of providing quality service to
the real economy, it gave full play to the distinctive resource advantages of
asset management as a securities company, strengthened the differentiated
development endowment, and consolidated the platform-based infrastructure
capacity. Moreover, it highly focused on key business directions,
continuously upgraded the service system of the whole business chain
and satisfied the asset management needs of customers throughout their
life cycle, so as to foster differentiated core competitiveness. It firmly
advanced the platform-based and differentiated development strategies on
business, made good use of the Group’s advantages in customer resources,
continuously explored new business growth points and constantly adjusted
the business structure. In terms of investment asset management business,
it actively built an integrated and large-scale investment research system,
continuously enriched the product layout, and empowered the exploration
and transformation of customer value in the whole business chain. In
terms of investment bank asset management business, it deeply exploited
internal resources and built-up service capacity in collaboration with the
56
whole industry chain to increase the coverage of key clients and promote
the revitalization of strategic clients’ assets. According to the regulatory
statement data, as of the end of the Reporting Period, the total asset
management scale of Huatai Asset Management was RMB556.267 billion,
representing a significant increase compared with the end of the previous
year. According to statistics from Wind Information, during the Reporting
Period, Huatai Asset Management, acting as the program manager, issued
154 enterprises’ ABS projects, ranking first in the industry; and the issuance
scale was RMB131.971 billion, ranking second in the industry. During the
Reporting Period, Huatai Asset Management promoted the completion of
the issuance and listing of Baowan Logistics REIT and Jianye High-tech
Investment REIT projects, and by acting as the fund manager and special
program manager, it continuously improved its ability to provide full-chain
services in the REITs business.
During the Reporting Period, for asset management business of securities
companies, the Group strictly controlled risks and continued to enhance its
active investment management capability and client service capability by
continuously developing core competitiveness on platform-based operation
and integration. It actively built scaled and differentiated product systems
covering different risk-return characteristics. For the collective asset
management business, a total of 291 collective asset management plans were
under management and the total management scale was RMB63.271 billion.
In respect of the single asset management business, a total of 599 single
asset management plans were under management and the total management
scale was RMB156.232 billion. In respect of specialized asset management
business, a total of 269 specialized asset management plans were under
management and the total management scale was RMB198.095 billion. In
respect of the public fund management business, we managed 43 public
fund products in total with an aggregated management scale of RMB138.669
billion.
57
The scale of the securities companies’ asset management business is as
follows:
Unit: 100 million Yuan
Currency: RMB
Business type
2024
2023
Collective asset management business
632.71
534.18
Single asset management business
1,562.32
1,307.51
Specialized asset management business
1,980.95
1,954.02
Public fund management business
1,386.69
959.38
Note:
The above data are from the regulatory statements.
(2)
Private equity fund management business
During the Reporting Period, for the private equity fund management
business, the Group focused on key industry research based on its
advantages, deeply deployed on key industries, appropriately adjusted the
principle of fund allocation, raised the standards on the selection of projects
and actively sought diversified withdrawal paths from invested enterprises.
Meanwhile, it continued to explore cooperation opportunities within the
ecosystem, strengthened the partnership with large SOEs, leading enterprises
in the industries and listed companies to steadily expand the scale of fund
management, increasingly improve the market competitiveness and steer
more resource elements towards new productive force. As of the end of
the Reporting Period, Huatai Purple Gold Investment and its secondary
subsidiaries as managers have filed a total of 32 private equity investment
funds with the Asset Management Association of China (
中國證券投資基
金業協會
), with a total subscription amount of RMB63.839 billion and a
total paid-up capital of RMB47.778 billion. During the Reporting Period, the
above-mentioned private equity investment funds implemented a total of 37
investment projects with a total investment amount of RMB1.964 billion.
(3)
Asset management business of fund companies
During the Reporting Period, with adherence to equal emphasis on
compliance management and business development, fund companies under
the Group continuously stepped up efforts on product research and business
innovation, strengthened the forward-looking layout on featured products,
constantly deepened the whole process service system and fully displayed
the advantages in the integration of all businesses under the investment and
research system to increasingly enhance the comprehensive capabilities on
cross-cycle and diversified asset allocation and continue to maintain the
58
increase in the total scale of assets under management. China Southern
Asset Management continuously optimized product layout and business
system, proactively established value-creating capabilities supported by
intelligent and platform-based operation. As of the end of the Reporting
Period, the total assets under its management amounted to RMB2,470.503
billion, among which the asset size of mutual funds business amounted to
RMB1,319.381 billion. Huatai-PineBridge kept on optimizing its product
design and investment strategy, and enriched its product categories, with
significant growth in the size of index funds. As of the end of the Reporting
Period, the total assets under its management amounted to RMB688.208
billion, among which the asset size of mutual funds business amounted
to RMB669.186 billion. According to the statistics of the Shanghai and
Shenzhen Stock Exchanges, as of the end of the Reporting Period, the scale
of the broad-based index fund CSI 300ETF under Huatai-PineBridge was
RMB359.627 billion, ranking first among all non-monetary ETFs on the
Shanghai and Shenzhen Stock Exchanges. During the Reporting Period,
China Southern Asset Management and Huatai-PineBridge were approved
to issue the first batch of Saudi ETFs in the PRC to track the FTSE Saudi
Arabia Index in the form of ETF cross-listing. (The profit or loss from equity
investments of China Southern Asset Management and Huatai-PineBridge
were included under other segments in the segment report)
(4)
Asset management business of futures companies
During the Reporting Period, Huatai Futures, a wholly-owned subsidiary
of the Group, with the objectives of maintaining high-quality development
and comprehensively enhancing the overall competitiveness of its business,
continued to improve the effectiveness of compliance, risk control and
management, and continuously enriched the system of derivative-featured
products centered on customers’ needs. It further deepened capability of
derivatives-featured asset management, accelerated the digital transformation
of its operation, actively created a new model of business development and
effectively met the differentiated risk preferences and asset allocation needs
of its customers. As of the end of the Reporting Period, Huatai Futures
managed a total of 30 asset management plans which were in the duration
period. The total asset management scale was RMB888,450,600, and the
futures equity scale was RMB538,675,800.
59
(5)
Alternative investment business
The Group carried out alternative investment business through its
wholly-owned subsidiary Huatai Innovative Investment. During the
Reporting Period, Huatai Innovative Investment fully improved business
synergy and efficiency, focused on the development of FINTECH equity
investment and the co-investment business of the STAR Market, and steadily
explored the co-investment business of the ChiNext and the strategic
placement business of the Beijing Stock Exchange according to regulatory
policies and the Group’s business layout. As of the end of the Reporting
Period, there were 38 subsisting investment projects with an investment
scale of RMB1,778,226,800. The investment attributes mainly include
co-investment on the STAR Market and equity investment.
3.
Prospect for 2025
The asset management business of securities companies will continue to rely on
the system of the entire business chain of the Group. The Group will give full
play to the genetic advantages as an investment bank, open up domestic and
overseas channels through the whole chain, and actively promote the international
expansion of business. Further efforts will be made to strengthen digital
application capability and continuously enhance active management capability. It
will reach out to the demand for diversified asset allocation via WeFund, tap into
the existing assets with REITs and ABS, and seek for incremental growth through
cross-border business, so as to cultivate differentiated core competitiveness and
enlarge the scale of client assets. Adhering to the “customer-oriented” philosophy
and with the investment asset management and the asset management services
on investment banking as drivers, the Group will provide one-stop and first-class
investment products, asset allocation and overall financial service solutions to
empower its customers in their asset management service journey. In respect of the
investment asset management business, it will take into account market analysis
as well as the customers’ need to continuously market the existing products and
launch new products, which cover various strategies and cater for various risk
appetites. In terms of investment bank asset management business, it will attach
importance to high-quality development, actively seize the new development
pattern to upgrade and transform to high-quality asset allocation.
In respect of the private equity fund management business, the Group will
proactively leverage the guiding effect of patient capital, build a new model of
business operation across the board, steadily expand the scale of fund management
and continuously enhance the investment management capability. Attention will
be paid to the research of key sectors and key regions and efforts will be made
to strengthen long-term capital cooperation with large institutions and industrial
leaders, expand the layout of strategic emerging industries, and enhance the
capacity of industrial integration and M&A. The Group will improve and optimize
the post-investment management system, continuously strengthen the ability to
diversify the withdrawal from investment projects and continuously increase the
level of post-investment management.
60
In respect of the asset management business of fund companies, the Group
will continue to strengthen compliance risk control and management and talent
team building. It will upgrade and iterate its digital and intelligent systems and
platforms, continue to improve its product layout and investment strategy, and
comprehensively promote the product-led business empowerment system and
technology-driven core competence construction. By continuously optimizing the
all-process and refined customer companion service system, it aims to enhance its
core capability in investment research and ability in value creation.
In respect of the asset management business of futures companies, the Group will
continue to iterate and expand the functions of the digital platform, constantly
consolidate the core competitiveness of investment research and operation
management, and actively build up derivatives-featured asset management
business. It will also continuously enrich the derivatives-featured products system,
steadily push forward international development, and make efforts to enhance the
cross-border trading service capability and product research capability, so as to
guarantee the high-quality development of business.
In respect of the alternative investment business, we will constantly improve
the system, mechanism and operational process, deepen the construction of
the FINTECH ecosystem, and prudently promote the development of equity
investment, the follow-on investment on the STAR Market, and other new
businesses, and improve capital usage efficiency and return on assets.
(V)
International business
1.
Market environment
In 2024, the global economy was experiencing a slow recovery, but featuring
with insufficient momentum and divergent growth. Meanwhile, scientific and
technological innovations represented by artificial intelligence were speeding
up global industrial revolution, which also gave rise to new opportunities and
space for development. Thanks to favorable domestic and international policies
and optimized market mechanism, the performance of the Hong Kong secondary
market showed an overall gradual uptick in oscillations, with the Hang Seng Index
up by 17.67% and the Hang Seng Tech Index up by 18.70%. According to the
statistics from Wind Information, the turnover in the Hong Kong stock market was
HK$24.75 trillion, representing a year-on-year increase of 29.31%. The size of
funds raised through IPOs in the Hong Kong primary market experienced strong
growth, while the refinancing scale continued to decline. The funds raised through
IPOs in the market were HK$88.147 billion, representing a year-on-year increase
of 90.24%. The funds raised upon listing were HK$87.513 billion, representing
a year-on-year decrease of 7.51%. The US secondary market recorded a strong
performance with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq
up by 12.88%, 23.31% and 28.64%, respectively. According to the statistics from
Wind Information, the turnover in the US stock market was USD111.00 trillion,
representing a year-on-year increase of 25.54%. The US primary market showed
vitality and an increasing trend of the financing scale. The size of funds raised
through IPOs in the market was USD40.811 billion, representing a year-on-year
increase of 49.66%. The scale of additional offerings was USD136.056 billion,
representing a year-on-year increase of 45.44%.
61
In recent years, China kept pacing up the high-level opening up in the capital
market. With policy innovation and systemic opening up, facilitating reforms
of cross-border investment and financing were gradually implemented and
cross-border interconnection was deepened. Against the backdrop of the profound
restructuring of the global supply chain and the significant growth in the demand
of Chinese enterprises to go overseas, the international process of Chinese-funded
securities companies has entered a new stage, which have gradually built up a
financial service network covering the whole world through systemic layout and
regional cultivation. At present, overseas market has become an important area
for Chinese-funded securities companies to expand their business presence, secure
new growth points and enhance their competitive strength, which also puts forward
higher requirements for the management and control ability of Chinese-funded
securities companies in integrated domestic and overseas operations. For a
securities company that wish to establish a first-class investment bank, it is
essential to better serve domestic customers in “going global” and overseas
customers in “coming to China”, to participate more in the global and regional
financial markets, and to polish core competence in the practice of international
competition.
2.
Operational measures and achievements
During the Reporting Period, as the Group’s holding platform for international
business, Huatai International fully aligned to the Group’s whole business chain
system, adhered to the customer-centric approach, consolidated its position as
a capital market intermediary, and optimized the cross-border comprehensive
financial service ecosystem. Relying on the Group’s advantages in platform and
digitization, Huatai International improved its management level in all aspects
and strictly controlled risks; it steadily pushed forward international layout and
continued to build core competitiveness for medium – and long-term development
and through cycles, with its influence in the overseas market continued to expand.
During the Reporting Period, a subsidiary under Huatai International was granted
securities trading code from the Vietnam Securities Market Regulatory Authority,
and Huatai Financial Holdings (Hong Kong) registered as a lead underwriter
in the Tokyo PRO-BOND market. As of the end of the Reporting Period, all
financial indicators of Huatai International ranked steadily among the top tier of
Chinese-funded securities firms in Hong Kong.
(1)
Business in Hong Kong
The Group’s business in Hong Kong adhered to its origins as a brokerage
firm providing agency service, and with cross-border business as the starting
point, built all-dimensional comprehensive cross-border financial service
platform systems. Despite the volatile market environment, it continued
to deepen its business systems including the equity business platform,
fixed-income business platform, wealth management platform, fund and
asset management platform and flagship investment banking business
with its advanced platform strength and effective risk control capabilities,
seeing that a number of business lines leading the industry. For the equity
derivatives business, the Group kept upgrading its globalization and all-asset
trading capabilities, which has covered major on-market and OTC asset
categories, and actively explored markets such as Japan, South Korea,
62
France, the Netherlands and Sweden; for the stock sales and transactions
business, the Group focused on one-stop and comprehensive cross-border
financial services on “spot equities + cross-border prime brokerage”, with
its long-term fund coverage capability maintaining at a high level, its
RMB-HKD dual-currency counter market making business covering all 24
market making subjects, and its market share in terms of turnover continuing
to increase, ranking in the first tier of the market; for FICC business, it
gave full play to its advantages in market foresight and risk control, led
business innovation with customer demand, improved its international
layout, and continued to build a platform-driven business ecosystem model,
thus realizing cross-market and cross-variety expansion, and preliminarily
establishing a 24-hour global trading platform that connects Hong Kong,
the United States and Singapore; for the wealth management business,
the Group continuously improved online and offline platform-based and
integrated operation and strengthened its diversified product sales channels
to customers, which has significantly increased the on-market business
for high-net-worth customers and obviously optimized the quality of
customer acquisition of the “ZhangLe Global” (
漲樂全球通
) platform, and
it formally launched the “Cross-boundary Wealth Management Connect”
business, which has strengthened the effect of cross-border linkage; for the
fund business, on one hand, the Group carried out active post-investment
management over the private equity investment business, continued to
expand its international business and deeply explored high-quality potential
investment opportunities, and on the other hand, it continued to push
forward business transformation of the asset management business and
continuously improved its active management capability and product design
and supply capacity, with a number of fund products launched during the
year to effectively meet the diversified investment needs of customers; for
the investment banking business, the Group closely followed the market
dynamics, responded to hot project trends and favorable policies and actively
built up core competitiveness through cycles. Based on internal and external
statistics and during the Reporting Period, Huatai Financial Holdings (Hong
Kong) sponsored seven Hong Kong IPO projects, ranking third in the market
in terms of the number of projects sponsored.
63
(2)
Huatai Securities (USA)
With the approval of the US Financial Industry Regulatory Authority, Huatai
Securities (USA) obtained the broker-dealer license in 2019 and obtained
qualification for proprietary trading in 2020. It obtained the business
qualification for securities trading with institutional investors in Canada
in 2021, obtained market access to major stock exchanges in Europe in
2022 and became an introducing broker for US futures products in 2023.
During the Reporting Period, it was qualified as a broker and dealer for US
Treasuries and a limited underwriting member of the Nasdaq Stock Market
in the United States. During the Reporting Period, Huatai Securities (USA)
officially launched its FICC business, actively undertook institutional
agency business in Hong Kong area, constantly expanded the variety of
products and market channels of FICC trading as an agency for customers
and continuously optimized the cross-border linkage and coordination
mechanism, providing integrated services to global investors. During the
Reporting Period, as an underwriter, as a lead underwriter, Huatai Securities
(USA) assisted Haidilao (
海底撈
) and Pony.ai to successfully land on the US
capital market.
(3)
Singapore Subsidiary
Singapore Subsidiary obtained the licenses on capital market services and
the waiver of licensing requirements on wealth management advisory issued
by Monetary Authority of Singapore in 2023 and conducts securities trading
and corporate financing businesses in Singapore in compliance with laws and
regulations. During the Reporting Period, Singapore Subsidiary spared no
effort in fulfilling its international development strategy, continued to deepen
its international layout, and served the high-level opening up of finance
with a cross-border integrated and comprehensive business system. For
equity derivatives business, it actively promoted customer access and trading
agreement signing and completed the opening of several brokerage accounts.
Singapore Subsidiary steadily promoted commodity futures market-making
business for the commodity business, and incorporated a number of
Southeast Asian countries, including Singapore, as targets for its bond
market-making business. For investment banking business, it focused on
providing comprehensive financial services and was committed to providing
overseas investors with products and services with Chinese characteristics.
For wealth management business, it tapped into customers’ needs, actively
explored opportunities for cooperation, effectively strengthened brand
awareness and market influence, and gave support in expanding customer
resources.
64
3.
Prospect for 2025
The Group will fully embark on a new round of international development, build
value creation competitiveness as a first-class investment bank, and extend the
comprehensive business advantages and core competencies accumulated in the
domestic market to the international market, so as to continue to expand new
room for development. Huatai International will keep to its international strategy
and continue to deepen its global layout. It will constantly tap into customers’
needs, build an integrated service system and create one-stop service capability.
Moreover, relying on platform-based operation, it will effectively improve the
synergy and efficiency in the full business chain that covers multiple markets,
empower business growth with digitization, and strictly control risks in order to
increasingly improve market competitiveness and the position in the industry.
For the business in Hong Kong, the Group will continue to consolidate its
intermediary positioning in the cross-border capital market and provide customers
with one-stop financial services. For equity derivatives business, the Group will
continue to solidify its business strengths, and leverage its expertise to grasp
global business opportunities and strengthen the levels of customer services; for
stock sales and trading business, the Group will effectively enhance the breadth
and depth of customer coverage, continuously enrich diversified products based
on customer needs, and continue to rely on the platform-based strategy to enhance
trading capabilities; for FICC business, the Group will promote domestic and
overseas integration and build a business ecosystem driven by customer service
with market making transaction as the core, product services as the carrier and
supported by platform-based systems; for wealth management business, the Group
will continue to improve the platform-based operation and system construction
for customers, enrich the product trading varieties, establish a customer-centric
service ecosystem, and realize the domestic and overseas linkage and coverage
of customers; for fund business, the Group will continue to strictly control risks,
implement the fund-based business operation and actively seized global market
opportunities to constantly improve product system and improve service level; for
investment banking business, the Group will give full play to the advantages in
onshore and offshore integration, expand the coverage of customers and projects
in key areas and proactively capture opportunities in outbound markets such as
Southeast Asia.
Huatai Securities (USA) will actively seize cross-border business opportunities,
continuously expand business layout, constantly improve the business
collaboration capabilities and expand the depth and breadth of the coverage over
global institutional investors. It will continuously improve stocks and the platform
and product systems of the FICC cross-border trading for customers as an agent,
actively broaden service radiation channels and provide all-round services to meet
the asset allocation and risk hedging needs of global investors.
65
Singapore Subsidiary will continue to devote itself to enhancing its brand
influence in Southeast Asia. For investment banking business, it will further
develop the local market, constantly expand the capital market in Southeast Asia,
and actively promote the development of its business. For wealth management
business, it will improve and optimize its infrastructure and business team to
provide customers with comprehensive services, and help realize the appreciation
of their investments and the inheritance of their wealth. For institutional business,
it will comprehensively broaden its business presence, continuously expand
the scope of commodity trading, and enhance the global trading capabilities of
Singapore as a regional center.
(VI) Digital development
1.
Digital finance development strategy
Focusing on the technology-based strategic orientation of “building technology
as the core competency of the Company”, the Group thoroughly practices the
important mission of “creating value by profession”. Following the two main lines
of internationalization and intelligence, it speeds up the construction of digital
capabilities for international business, works on enhancing the intelligent level
of key platforms, continues to promote the iteration and optimization of business
platforms, and continues to consolidate the resilience of the digital infrastructure,
so as to push forward the digital transformation with high quality. The Group
is committed to fully transforming its scientific and technological advantages
into the business value by strengthening its strategic coordination and traction,
improving its assessment and governance system, cultivating talents in key areas,
cementing the root for organizational culture, reinforcing its investment in science
and technology innovation, and promoting the in-depth integration of science and
technology with its business.
2.
Major measures and results in digital transformation during the Reporting Period
During the Reporting Period, focusing on the four overall targets of digital
transformation, namely, to achieve “client’s success, business innovation,
operation optimization and employee empowering”, the Group advanced the
intelligent enhancement of its business platform in an orderly manner, focused on
empowering the high-quality expansion of its international business, and promoted
the Company’s comprehensive digitalization to a new level.
In terms of “enabling client’s success”, “ZhangLe Fortune Path” (
漲樂財富通
)
continued to build the middle platform with financial capabilities, empowered
with professional service capabilities in the four areas of investment research,
content, marketing and operation, and improved content operation efficiency
based on AI capabilities in short video production and live streaming by digital
characters. The one-stop institutional customer service platform “Xing Zhi” (
行
知
) released version 5.0, focusing on the core demands of four types of key
customer groups, and continuing to create intelligent, self-service and personalized
platform experience. The Onboarding platform for institutional customers covered
the whole process of due diligence, contract signing and account opening, which
has achieved full coverage of the business lines of headquarters and overseas
institutions.
66
In terms of “business innovation”, focusing on customer value and market trends,
the cross-border prime brokerage platform has created a cross-boundary prime
brokerage system that integrates trading, securities financing and risk control
capabilities to meet the diversified trading demands of domestic and overseas
institutional customers in an all-round way; the FICC trading platform has
completed the construction of market-making and customer service capacity with
high quality, and preliminarily built a global trading system.
In terms of “operation optimization”, the intelligent investment research platform
was upgraded with an intelligent research report system through the large model,
which has empowered the whole chain of investment research to improve quality
and efficiency. The core system of the “Investment Banking Cloud” platform
was reshaped, enabling the Group to be the first securities company with a fully
self-developed core system in the investment banking sector. The Group upgraded
intelligent audit, intelligent Q&A and other AI applications to empower business
to improve quality and reduce risk. For the risk management platform, it deepened
professional risk quantitative research and management capacity building, and
improved platform-based support for international business risk management.
In terms of “employee empowering”, “AORTA” (
聊
TA), the intelligent investment
consulting platform, focused on building a classified and stratified customer base
operation system and established a supporting team and platform capability base to
improve service quality and coverage; “Qing Cloud” (
青雲
), the sales management
platform for institutional customers, deepened client and employee profiles and
continued to promote integrated sales operations at home and abroad with data as
the driving force.
(VII) Business innovation and its effects on the Company
’
s business performance, future
development and risk control
During the Reporting Period, the Company constantly carried out business innovation
activities, promoted the innovation of business, products, services and management
modes, and constantly improved its innovation ability. The development of innovative
business is a supplement to the existing product lines and business scope, which
can effectively release business space, expand client resources and revenue sources,
enhance profitability, as well as improve customer structure and business model, meet
customers’ full and diversified business needs, and further enhance brand influence.
During the Reporting Period, the Company continued to improve the management
mechanism on new businesses and the construction of relevant system functions, paid
closer attention to the backtracking and implementation of control measures, enhanced
the identification and assessment of new risk points in the course of developing new
business, and continuously improved the quality of new business assessment and
management.
During the Reporting Period, the Company was granted another qualification of
“Cross-boundary Wealth Management Connect” business pilot to facilitate cross-border
investment by residents of the Guangdong-Hong Kong-Macao Greater Bay Area.
It also obtained market-making qualifications for some commodity futures/option
varieties on Dalian Commodity Exchange, Zhengzhou Commodity Exchange and
Guangzhou Futures Exchange to provide liquidity to the market. Based on the risk
67
profile of its business, the Company comprehensively identified and evaluated potential
business risks and strengthened management and control over key links and key risks,
establishing a business risk control mechanism. The Company has formulated various
risk control indicators in accordance with its business characteristics to control risk
exposure, position limits, etc., and further improved the system construction and
control mechanism supporting the market-making business, so as to incorporate the
new business into the risk management system and ensure the smooth operation of the
business.
(VIII)
There were no significant changes in the Company
’
s operation status during
the Reporting Period and there were no matters that had or expected to have
significant influence in the future on the Company
’
s operation during the
Reporting Period
VI.
MAJOR OPERATIONS DURING THE REPORTING PERIOD
As of December 31, 2024, on a consolidated statements basis, total assets of the Group
amounted to RMB814,270,494 thousand, representing a year-on-year decrease of 10.08%;
total equity attributable to shareholders of the Company amounted to RMB191,673,902
thousand, representing a year-on year increase of 7.02%; total revenue, other income and
gains amounted to RMB54,285,483 thousand, representing a year-on-year increase of
3.87%; and profit for the year attributable to shareholders of the Company amounted to
RMB15,351,162 thousand, representing a year-on-year increase of 20.40%.
(I)
Main businesses analysis
1.
Analysis table of the changes in relevant items of the income statement and the
cash flow statement
Unit: Thousand Yuan
Currency: RMB
Item
Amount for
the current
period
Amount for
the same
period of
last year
Change
percentage
(%)
Total revenue, other income and gains
54,285,483
52,260,421
3.87
Total expenses
(41,287,096)
(40,640,541)
1.59
Profit before income tax
15,352,340
14,204,664
8.08
Profit for the year attributable to the
shareholders of the Company
15,351,162
12,750,633
20.40
Net cash generated from/(used in)
operating activities
34,818,437
(28,475,553)
N/A
Net cash generated from/(used in)
investing activities
20,496,121
(6,264,467)
N/A
Net cash (used in)/generated from
financing activities
(59,670,326)
17,961,792
N/A
Net decrease in cash and
cash equivalents
(4,355,768)
(16,778,228)
N/A
68
2.
Revenue, other income and gains
As of December 31, 2024, the Group recorded total revenue, other income and
gains of RMB54,285 million, representing a year-on-year increase of 3.87%, in
which:
(1)
Fee and commission income recorded a year-on-year decrease of 8.88% to
RMB17,259 million, accounting for 31.79%, mainly due to the decrease
in income from asset management business, underwriting and sponsorship
business.
(2)
Interest income recorded a year-on-year decrease of 7.21% to RMB13,561
million, accounting for 24.98%, mainly due to the decrease in interest
income from margin financing and securities lending.
(3)
Net investment gains recorded a year-on-year increase of 24.25% to
RMB14,501 million, accounting for 26.71%, mainly due to the increase in
revenue from the Group’s investment business.
(4)
Other income and gains recorded a year-on-year increase of 27.45% to
RMB8,964 million, accounting for 16.51%, mainly due to the increase in
income from sales of bulk commodity of the Group.
Unit: Thousand Yuan
Currency: RMB
Item
2024
2023
Increase/decrease
Amount
Ratio
Amount
Ratio
Amount
Ratio
Fee and commission
income
17,259,336
31.79%
18,940,982
36.24%
(1,681,646)
(8.88)%
Interest income
13,560,994
24.98%
14,615,232
27.97%
(1,054,238)
(7.21)%
Net investment gains
14,500,758
26.71%
11,670,400
22.33%
2,830,358
24.25%
Other income and gains
8,964,395
16.51%
7,033,807
13.46%
1,930,588
27.45%
Total revenue, other
income and gains
54,285,483
100.00%
52,260,421
100.00%
2,025,062
3.87%
69
3.
Total expenses
As of December 31, 2024, the Group’s total expenses were RMB41,287 million,
representing a year-on-year increase of 1.59%, mainly due to the increase in other
operating expenses, in which:
(1)
Fee and commission expenses amounted to RMB4,311 million, representing
a year-on-year decrease of 0.40%, mainly due to the decrease in expenses of
asset management business, underwriting and sponsorship business.
(2)
Interest expenses amounted to RMB10,856 million, representing a year-on-
year decrease of 20.54%, mainly due to the decrease in interest expenses on
placements from banks and other financial institutions.
(3)
Staff costs amounted to RMB10,075 million, representing a year-on-year
increase of 7.50%, mainly due to the increase in accrued staff costs of the
Group.
(4)
Other expenses mainly include depreciation and amortisation expenses,
tax and surcharges as well as impairment losses under expected credit loss
model, net of reversal and other operating expenses.
Unit: Thousand Yuan
Currency: RMB
Item
2024
2023
Increase/decrease
Amount
Ratio
Amount
Ratio
Amount
Ratio
Fee and commission
expenses
(4,310,977)
10.44%
(4,328,290)
10.65%
17,313
(0.40)%
Interest expenses
(10,856,424)
26.29%
(13,662,909)
33.62%
2,806,485
(20.54)%
Staff cost
(10,074,621)
24.40%
(9,371,842)
23.06%
(702,779)
7.50%
Depreciation and
amortization expenses
(1,774,611)
4.30%
(1,856,409)
4.57%
81,798
(4.41)%
Tax and surcharges
(179,417)
0.43%
(187,664)
0.46%
8,247
(4.39)%
Other operating expenses
(13,844,777)
33.53%
(11,644,373)
28.65%
(2,200,404)
18.90%
Impairment losses under
expected credit loss
model, net of reversal
(246,269)
0.60%
410,946
(1.01)%
(657,215)
(159.93)%
Total expenses
(41,287,096)
100.00%
(40,640,541)
100.00%
(646,555)
1.59%
70
4.
Analysis of segment revenue, other income and gains and segment expenses
(1)
Analysis of segment revenue, other income and gains
Unit: Thousand Yuan
Currency: RMB
Business segment
Segment
revenue,
other
income and
gains for
the current
period
Percentage
of total
segment
revenue,
other
income and
gains for
the current
(%)
Segment
revenue,
other
income and
gains for
the same
period of
last year
Percentage
of total
segment
revenue,
other
income and
gains for
the same
period of
last year
(%)
Increase or
decrease in
percentage of
total segment
revenue, other
income and
gains as
compared to
the same period
of last year
Wealth management business
23,808,741
43.86
23,324,795
44.63
Decrease of 0.77
percentage point
Institutional services business
8,169,556
15.05
10,549,352
20.19
Decrease of 5.14
percentage points
Investment management business
2,659,847
4.90
3,358,823
6.43
Decrease of 1.53
percentage points
International business
18,193,615
33.51
12,941,308
24.76
Increase of 8.75
percentage points
Others (including offset)
1,453,724
2.68
2,086,143
3.99
Decrease of 1.31
percentage points
During the Reporting Period, on a consolidated basis, the Group recorded
revenue, other income and gains of RMB54,285 million in total, representing
a year-on-year increase of 3.87%. Among the principal business segments,
segment revenue from wealth management business of the Group increased
by RMB484 million as compared to the same period of last year, while
as influenced by the market, segment revenue from institutional services
business and investment management business decreased by RMB2,380
million and RMB699 million as compared to the same period of last year,
respectively, and international business segment maintained a favorable
growth, with revenue increasing by RMB5,252 million as compared to the
same period of last year.
71
(2)
Changes in the scope of consolidation due to changes in shareholding of
major subsidiaries during the Reporting Period
For changes in the scope of consolidation due to changes in shareholding
of major subsidiaries during the Reporting Period, please refer to “24.
Investments in subsidiaries” of “Notes to the Consolidated Financial
Statements” in “Independent Auditor’s Report and Consolidated Financial
Statements” of this report.
(3)
Analysis on segment expenses
Unit: Thousand Yuan
Currency: RMB
Business segment
Segment
expenses for
the current
period
Percentage
of total
segment
expenses for
the current
period (%)
Segment
expenses for
the same
period of
last year
Percentage
of total
segment
expenses for
the same
period of
last year (%)
Increase or
decrease in
percentage of
total segment
expenses as
compared to
the same period
of last year
Wealth management business
(17,586,912)
42.60
(16,634,272)
40.93
Increase of 1.67
percentage points
Institutional services business
(7,172,421)
17.37
(7,907,900)
19.46
Decrease of 2.09
percentage points
Investment management business
(1,530,117)
3.71
(1,589,098)
3.91
Decrease of 0.20
percentage point
International business
(11,260,104)
27.27
(10,648,760)
26.20
Increase of 1.07
percentage points
Others (including offset)
(3,737,542)
0.09
(3,860,511)
9.50
Decrease of 9.41
percentage points
In terms of expenses of each business segment as a percentage of total
expenses of the Group, expenses of wealth management business and
international business segments increased by 1.67 percentage points and
1.07 percentage points, respectively, and expenses of institutional services
business and investment management business segments decreased by 2.09
percentage points and 0.20 percentage point, respectively.
72
5.
Information of R&D personnel
During the Reporting Period, the Group continued to deepen the strategy on digital
transformation, firmly focused on the technology-based strategic orientation of
“building technology as the core competency of the Company”, further solidified
the construction of technology organizations and constantly established scientific
and flexible organizational systems and talent development systems, achieving
the quality development of R&D team. As of the end of the Reporting Period, the
R&D personnel of the Group amounted to 3,337, representing 19.67% of the total
staff of the Group.
As of the end of the Reporting Period, the information of R&D personnel of the
Group is as follows
1
:
Number of R&D personnel of the
Company
3,337
Percentage of the number of R&D
personnel to the Company’s total
number of employees (%)
19.67
Education composition of R&D personnel
Education composition category
Number of education composition
Doctor
15
Master
1,465
Bachelor
1,457
Junior college graduate and below
59
Age composition of R&D personnel
Age composition category
Number of age composition
<30
1,031
≥30-<40
1,680
≥40-<50
234
≥50
51
1
Note:
Due to the internal policies of corporations in the United States, the above statistics of education and age
composition do not include those of employees of corporations in the United States.
73
6.
Cash flow
Unit: Thousand Yuan
Currency: RMB
Item
Amount
for the
current period
Amount
for the same
period of
last year
Amount
of increase
or decrease
Percentage of
increase or
decrease (%)
Net cash generated from/(used in)
operating activities
34,818,437
(28,475,553)
63,293,990
N/A
Net cash generated from/(used in)
investing activities
20,496,121
(6,264,467)
26,760,588
N/A
Net cash (used in)/generated from
financing activities
(59,670,326)
17,961,792
(77,632,118)
N/A
Net decrease in cash and cash
equivalents
(4,355,768)
(16,778,228)
12,422,460
N/A
During the Reporting Period, the net decrease in cash and cash equivalents of the
Group was RMB4,356 million, in which:
(1)
Net cash generated from operating activities was RMB34,818 million,
representing an increase of RMB63,294 million as compared to the same
period of last year, mainly due to the decrease in financial instruments at fair
value through profit or loss for the current period.
(2)
Net cash generated from investing activities was RMB20,496 million,
representing an increase of RMB26,761 million as compared to the same
period of last year, mainly due to the increase in the proceeds from disposal
of financial instruments at fair value through other comprehensive income
and the increase in the proceeds from disposal of subsidiaries for the current
period.
(3)
Net cash used in financing activities was RMB59,670 million, representing a
decrease of RMB77,632 million as compared to the same period of last year,
mainly due to the decrease in cash received from the issuance of long-term
bonds for the current period.
74
7.
Detailed description of significant changes in the Group
’
s business types,
components or sources of profit
Unit: Thousand Yuan
Currency: RMB
Item
Amount for
the current
period
Amount for
the same
period of
last year
Year-on-year
change (%)
Principal reason
Total revenue, other income
and gains
54,285,483
52,260,421
3.87
Increase in net investment gains, other
income and gains
Total expenses
(41,287,096)
(40,640,541)
1.59
Increase in other operating expenses
Operating profit
12,998,387
11,619,880
11.86
Increase in total revenue, other income and
gains
Profit before income tax
15,352,340
14,204,664
8.08
Increase in total revenue, other income and
gains
Profit for the year
15,518,874
13,036,260
19.04
Increase in total revenue, other income and
gains
Among which: profit for the
year attributable to
shareholders of the Company
15,351,162
12,750,633
20.40
Increase in total revenue, other income and
gains
Item
Balance as
at the end of
the period
Balance as at
the beginning
of the period
Year-on-year
change (%)
Principal reason
Total assets
814,270,494
905,508,389
(10.08)
Decrease in financial assets
Total liabilities
622,376,573
723,290,957
(13.95)
Decrease in long-term bonds and financial
assets sold under repurchase agreements
Total shareholders’ equity
191,893,921
182,217,432
5.31
Realization of profit for the year
75
(II)
Analysis of key items of consolidated statement of financial position
1.
General description of consolidated statement of financial position
Unit: Thousand Yuan
Currency: RMB
Item
As at December 31, 2024
As at December 31, 2023
Increase/decrease
Amount
Ratio
Amount
Ratio
Amount
Ratio
Non-current assets
Property and equipment
6,489,412
0.80%
6,519,710
0.72%
(30,298)
(0.46)%
Investment properties
182,131
0.02%
136,284
0.02%
45,847
33.64%
Goodwill
51,342
0.01%
3,419,332
0.38%
(3,367,990)
(98.50)%
Land use rights and other
intangible assets
2,035,899
0.25%
7,515,260
0.83%
(5,479,361)
(72.91)%
Interest in associates
21,446,915
2.63%
19,496,027
2.15%
1,950,888
10.01%
Interest in joint ventures
999,113
0.12%
1,299,405
0.14%
(300,292)
(23.11)%
Debt instruments at
amortised cost
40,854,764
5.02%
45,404,582
5.01%
(4,549,818)
(10.02)%
Financial assets held under
resale agreements
199,610
0.02%
–
–
199,610
–
Debt instruments at
fair value through other
comprehensive income
5,938,076
0.73%
15,207,952
1.68%
(9,269,876)
(60.95)%
Equity instruments at
fair value through other
comprehensive income
125,860
0.02%
124,506
0.01%
1,354
1.09%
Financial assets at fair
value through profit or
loss
5,292,149
0.65%
7,952,021
0.88%
(2,659,872)
(33.45)%
Refundable deposits
33,451,298
4.11%
40,544,278
4.48%
(7,092,980)
(17.49)%
Deferred tax assets
1,591,926
0.20%
702,722
0.08%
889,204
126.54%
Other non-current assets
240,951
0.03%
311,789
0.03%
(70,838)
(22.72)%
Total non-current assets
118,899,446
14.60%
148,633,868
16.41%
(29,734,422)
(20.01)%
76
Item
As at December 31, 2024
As at December 31, 2023
Increase/decrease
Amount
Ratio
Amount
Ratio
Amount
Ratio
Current assets
Accounts receivable
5,587,233
0.69%
9,743,761
1.08%
(4,156,528)
(42.66)%
Other receivables,
prepayments and other
current assets
2,880,227
0.35%
2,539,985
0.28%
340,242
13.40%
Margin accounts receivable
132,546,005
16.28%
112,341,094
12.41%
20,204,911
17.99%
Debt instruments at
amortised cost
6,938,958
0.85%
4,712,230
0.52%
2,226,728
47.25%
Financial assets held under
resale agreements
15,028,791
1.85%
12,460,232
1.38%
2,568,559
20.61%
Debt instruments at fair value
through other
comprehensive income
4,197,477
0.52%
1,054,048
0.12%
3,143,429
298.22%
Financial assets at fair value
through profit or loss
296,245,608
36.38%
405,127,363
44.74%
(108,881,755)
(26.88)%
Derivative financial assets
9,991,125
1.23%
16,259,881
1.80%
(6,268,756)
(38.55)%
Clearing settlement funds
11,136,758
1.37%
9,129,266
1.01%
2,007,492
21.99%
Cash held on behalf of
brokerage clients
170,880,569
20.99%
137,210,295
15.15%
33,670,274
24.54%
Cash and bank balances
39,521,458
4.85%
46,296,366
5.11%
(6,774,908)
(14.63)%
Held-for-sale assets
416,839
0.05%
–
–
416,839
–
Total current assets
695,371,048
85.40%
756,874,521
83.59%
(61,503,473)
(8.13)%
Total assets
814,270,494
100.00%
905,508,389
100.00%
(91,237,895)
(10.08)%
Current liabilities
Short-term bank loans
3,362,980
0.54%
11,478,573
1.59%
(8,115,593)
(70.70)%
Short-term debt
instruments issued
28,852,939
4.64%
25,475,507
3.52%
3,377,432
13.26%
Placements from other
financial institutions
30,113,661
4.84%
39,536,527
5.47%
(9,422,866)
(23.83)%
Accounts payable to
brokerage clients
184,586,976
29.66%
144,701,360
20.01%
39,885,616
27.56%
Employee benefits payable
4,589,013
0.74%
4,151,439
0.57%
437,574
10.54%
Other payables and accruals
75,436,419
12.12%
113,884,799
15.75%
(38,448,380)
(33.76)%
Contract liabilities
104,692
0.02%
177,500
0.02%
(72,808)
(41.02)%
Current tax liabilities
179,973
0.03%
493,520
0.07%
(313,547)
(63.53)%
Financial assets sold under
repurchase agreements
121,048,168
19.45%
144,056,149
19.92%
(23,007,981)
(15.97)%
Financial liabilities at fair
value through profit or loss
33,474,911
5.38%
43,710,135
6.04%
(10,235,224)
(23.42)%
Derivative financial liabilities
10,943,785
1.76%
16,848,878
2.33%
(5,905,093)
(35.05)%
Long-term bonds due
within one year
41,787,436
6.71%
44,803,489
6.19%
(3,016,053)
(6.73)%
Held-for-sale liabilities
75,402
0.01%
–
–
75,402
–
Total current liabilities
534,556,355
85.89%
589,317,876
81.48%
(54,761,521)
(9.29)%
Net current assets
160,814,693
–
167,556,645
–
(6,741,952)
(4.02)%
Total assets less current
liabilities
279,714,139
–
316,190,513
–
(36,476,374)
(11.54)%
77
Item
As at December 31, 2024
As at December 31, 2023
Increase/decrease
Amount
Ratio
Amount
Ratio
Amount
Ratio
Non-current liabilities
Derivative financial liabilities
–
–
32,763
–
(32,763)
(100.00)%
Long-term bonds
73,671,381
11.84%
115,012,512
15.90%
(41,341,131)
(35.94)%
Long-term bank loans
–
–
647,052
0.09%
(647,052)
(100.00)%
Non-current employee
benefits payable
6,116,922
0.98%
6,431,780
0.89%
(314,858)
(4.90)%
Deferred tax liabilities
476,548
0.08%
1,960,663
0.27%
(1,484,115)
(75.69)%
Financial liabilities at fair
value through profit or loss
6,973,421
1.12%
8,961,031
1.24%
(1,987,610)
(22.18)%
Other payables and accruals
581,946
0.09%
927,280
0.13%
(345,334)
(37.24)%
Total non-current liabilities
87,820,218
14.11%
133,973,081
18.52%
(46,152,863)
(34.45)%
Net assets
191,893,921
–
182,217,432
–
9,676,489
5.31%
Shareholders’ equity
Share capital
9,027,302
4.70%
9,074,663
4.98%
(47,361)
(0.52)%
Other equity instruments
28,300,000
14.75%
25,700,000
14.10%
2,600,000
10.12%
Treasury share
(100,545)
(0.05)%
(1,064,173)
(0.58)%
963,628
(90.55)%
Reserves
105,753,021
55.11%
102,967,146
56.51%
2,785,875
2.71%
Retained profits
48,694,124
25.38%
42,430,731
23.29%
6,263,393
14.76%
Total equity attributable to
shareholders of the
Company
191,673,902
99.89%
179,108,367
98.29%
12,565,535
7.02%
Non-controlling interests
220,019
0.11%
3,109,065
1.71%
(2,889,046)
(92.92)%
Total shareholders’ equity
191,893,921
100.00%
182,217,432
100.00%
9,676,489
5.31%
78
As of December 31, 2024, total non-current assets of the Group amounted
to RMB118,899 million, representing a decrease of RMB29,734 million as
compared to the beginning of the year, which was mainly due to the decrease in
debt instruments at fair value through other comprehensive income, refundable
deposits, land use rights and other intangible assets, debt instruments at amortised
cost and goodwill of RMB9,270 million, RMB7,093 million, RMB5,479 million,
RMB4,550 million and RMB3,368 million, respectively. As of December 31,
2024, total non-current liabilities of the Group amounted to RMB87,820 million,
representing a decrease of RMB46,153 million as compared to the beginning of
the year, which was mainly due to the decrease in long-term bonds of RMB41,341
million.
As of December 31, 2024, total current assets of the Group amounted to
RMB695,371 million, representing a decrease of RMB61,503 million as compared
to the beginning of the year, which was mainly due to the decrease in financial
assets at fair value through profit or loss of RMB108,882 million. As of December
31, 2024, total current liabilities of the Group amounted to RMB534,556 million,
representing a decrease of RMB54,762 million as compared to the beginning of
the year, which was mainly due to the decrease in other payables and accruals
and financial assets sold under repurchase agreements of RMB38,448 million and
RMB23,008 million, respectively.
2.
Major restricted assets as of the end of the Reporting Period
As of the end of the Reporting Period, major restricted assets of the Group
totaled RMB179,467,651 thousand, including cash and bank balances, financial
assets at fair value through profit or loss, debt investment at amortised cost, debt
instruments at fair value through other comprehensive income and interest in
associates. Except for the above assets, no major assets of the Group were seized,
detained, frozen, mortgaged or pledged so that they could or could not be realized,
or could not be used to pay the debts only under a certain condition. There was no
circumstance or arrangement under which the major assets were occupied, used or
benefited or the disposal of them was limited.
3.
Contingent liabilities
For contingent liabilities during the Reporting Period, please refer to “58.
Outstanding litigations” to the “Notes to the Consolidated Financial Statements”
under the “Independent Auditor’s Report and Consolidated Financial Statements”
of this report.
79
4.
Description of changes in the measurement of assets measured at fair value and
prime assets
Fair value refers to the price received for selling one asset or the price payable for
transferring one liability by a market participant in an orderly transaction on the
measurement date.
When estimating the fair value, the Group considers the characteristics that the
market participants consider when they price the related assets or liabilities on
the measurement date (including the asset status and the limitation on selling or
using the assets), and adopts the currently available valuation techniques that are
supported by adequate available data and other information. The main valuation
techniques used include the market approach, income approach and cost approach.
The impact of gains and losses of changes in fair value on the Group’s profit
during the Reporting Period is as follows:
Unit: Thousand Yuan
Currency: RMB
Item
Impact
on profit
for 2024
Impact
on profit
for 2023
Financial assets at fair value through profit
or loss
(3,901,985)
7,235,361
Financial liabilities at fair value through profit
or loss
28,452
257,689
Derivative financial instruments
(988,058)
(6,518,537)
Total
(4,861,591)
974,513
80
5.
Structure and quality of assets
As of December 31, 2024, total shareholders’ equity of the Group amounted to
RMB191,894 million, representing an increase of RMB9,676 million or 5.31% as
compared to that as of the end of 2023, which was mainly due to the realization of
profit retention by the Group during the Reporting Period.
The asset structure of the Group continued to be optimized and the assets
maintained good quality and liquidity. As of December 31, 2024, total assets of the
Group amounted to RMB814,270 million, representing a decrease of RMB91,238
million or 10.08% as compared to the beginning of the year. Specifically,
cash and bank balances, cash held on behalf of brokerage clients and clearing
settlement funds of the Group amounted to RMB221,539 million, accounting for
27.21% of the total assets; margin accounts receivable amounted to RMB132,546
million, accounting for 16.28% of the total assets; financial assets at fair value
through profit or loss amounted to RMB301,537 million, accounting for 37.03%
of the total assets; debt instruments at amortised cost, debt instruments at fair
value through other comprehensive income and equity instruments at fair value
through other comprehensive income amounted to a total of RMB58,055 million,
accounting for 7.13% of the total assets; property and equipment, investment
properties and other intangible assets accounted for 1.07% of the total assets. Most
of the assets have strong cashability. The Group’s assets have strong liquidity and
the asset structure is reasonable.
During the Reporting Period, the Group’s debt-to-assets ratio decreased. As of
December 31, 2024, the total liabilities of the Group amounted to RMB622,377
million, representing a decrease of RMB100,914 million or 13.95% as compared
to the beginning of the year. The debt-to-assets ratio was 69.53% (excluding the
impact of customer funds), representing a decrease of 6.52 percentage points as
compared to the beginning of the year.
As of December 31, 2024, the Group obtained funds through borrowings and debt
financing instruments. As of the end of the Reporting Period, the total principal
of the placements from other financial institutions of the Group amounted to
RMB177,788 million. Details are shown as follows:
Unit: Thousand Yuan
Currency: RMB
Borrowings and debt financing plans
As of December
31, 2024
Placement from China Securities Finance Corporation Limited
–
Placement from other financial institutions
30,113,661
Short-term borrowings
3,362,980
Short-term financing funds payable
28,852,939
Long-term borrowings
–
Bonds payable
115,458,817
Total principal
177,788,397
81
Borrowings and debt financing with a financing maturity of more than one year
were RMB115,459 million, accounting for 64.94%. Among them, programs with
a financing maturity of one to two years were RMB7,674 million, those with a
financing maturity of two to five years were RMB107,755 million, and those with
a financing maturity of over five years were RMB30 million. Borrowings and
debt financing with a financing maturity of less than one year were RMB62,330
million, accounting for 35.06%.
As of December 31, 2024, the Group’s borrowings and debt financing with
fixed interest rate were RMB177,788 million. In particular, the balance of short-
term borrowings was RMB3,363 million with no long-term borrowings incurred
during the year; the balance of placement from other financial institutions was
RMB30,114 million; the balance of income receipts with fixed interest rate was
RMB15,250 million; the balance of corporate bonds was RMB92,051 million; the
balance of subordinated debts was RMB14,402 million; and the balance of foreign
debts was RMB22,609 million.
As of December 31, 2024, cash and cash equivalents of the Group amounted to
RMB56,033 million, of which RMB cash and cash equivalents accounted for
72.92%.
As of December 31, 2024, the Group’s short-term bank borrowings included
balance of credit borrowings of RMB2,983 million, and that of pledge borrowings
of RMB380 million.
As of December 31, 2024, the Group had no long-term bank borrowings.
6.
Analysis of profitability
In 2024, the Group firmly implemented the “two-pronged” (
雙輪驅動
) core
strategy of wealth management and institutional services under technology
empowerment, and constantly unleashed development momentum with its
operating results improving steadily. Its comprehensive strength soundly ranked in
the forefront of the industry.
82
7.
Explanations on the changes in the scope of consolidation of the statements
For details of the explanations on the changes in the scope of consolidation of
the statements of the Group, please refer to “24. Investment in Subsidiaries” to
the “Notes to the Consolidated Financial Statements” under the “Independent
Auditor’s Report and Consolidated Financial Statements” of this report.
8.
Analysis of income tax policy
During the Reporting Period, the Company’s income tax was subject to the
Corporate Income Tax Law of the PRC (
《中華人民共和國企業所得稅法》
) and
the Enforcement Regulations of Corporate Income Tax Law of the PRC (
《中華人
民共和國企業所得稅法實施條例》
). The calculation and payment methods of the
income tax shall be subject to the Announcement of the State Administration of
Taxation on Issuing the Measures for the Consolidated Collection of Corporate
Income Tax on Trans-regional Business Operations (Announcement [2012] No. 57
of the State Administration of Taxation) (
《國家稅務總局關於印發
<
跨地區經營匯
總納稅企業所得稅徵收管理辦法
>
的公告》
(
國家稅務總局公告
[2012]57
號
)). The
income tax rate applicable to the Company and its domestic subsidiaries is 25%.
The Company enjoys the preferential policy of calculating and deducting research
and development expenses, and the profit tax rate applicable to the Hong Kong
subsidiary of the Company is 16.5%. Other overseas subsidiaries of the Company
are subject to income taxes at tax rates applicable in their jurisdictions.
83
9.
Analysis of financing channels and financing capacity
Financing
channels
The Company, taking into account the market environment
and its own demand, carried out financing in the domestic
through stock exchanges, interbank market, counter market and
other markets according to relevant policies and regulations.
The Company’s short-term financing channels included
credit lending, bond repurchasing, short-term corporate
bonds, income credential and margin refinancing, etc. The
Company’s medium and long-term financing channels include
issuing corporate bonds, subordinated bonds and perpetual
subordinated bonds, etc. Meanwhile, the Company can also
introduce offshore funds through the issuance of overseas
bonds and medium-term notes as well as bank loans to support
the business development of the Company.
Liquidity
management
policies and
measures
The Company has always attached great importance to liquidity
management. As for funds management, it adhered to the
principle of “full amount concentrated, allocated in a unified
way, valued by classification and monitored timely”. In terms
of management and development strategies, it paid attention to
matching business scale with liabilities. Based on reasonable
asset allocation and diversified debt financing, the Company
ensured reasonable matching of duration, scale of assets and
liabilities and proper liquidity.
The Company followed the general principles of
comprehensiveness, prudency, predictiveness for liquidity
risk management according to the centralized management
and stratified prevention and control management model,
established a liquidity risk management system based on
comprehensive risk management framework, set up and
improved the liquidity risk management system in line with
the Company’s strategy, and implemented liquidity risk
management policy with the preference for “steadiness and
safety”. The Company ensured there is no liquidity risk that
would cause significant impacts on sustainable operation, so
as to fully guarantee the steady and safe development of the
business of the Company.
84
To ensure its liquidity safety, the Company has adopted
various measures mainly including: 1) constantly improving
the capital position management, strengthening the daytime
liquidity monitoring system, and enhancing daytime liquidity
risk control by keeping abreast of capital usage in business
and day-time payment progress in a timely manner, so as
to further strengthen liquidity risk prevention and control;
2) strengthening the management for the matching between
durations of assets and liabilities and establishing high-quality
current asset reserves, ensuring financing to be more diverse
and stable; 3) constantly consolidating the construction of
the treasury management platform, and strengthening the
capabilities of the information system to identify, measure,
monitor and control liquidity risks, in order to ensure that the
liquidity risks are measurable, controllable and tolerable; 4)
analyzing supervisory indicators of cash flow and liquidity risk
under certain stress scenarios to evaluate the tolerance level
of the Company for liquidity risks and analyzing the stress
test results to constantly improve the Company’s response
capacity to liquidity risks; 5) continuously strengthening
the management on the liquidity risk of subsidiaries and
the vertical management on the liquidity risk of overseas
subsidiaries to improve subsidiaries’ response capacity to
liquidity risks and the Group’s prevention and control of
liquidity risks; 6) organizing the formulation, exercise and
evaluation of a liquidity risk contingency plan, in order to
improve the Company’s emergency capacity for liquidity risks;
and 7) improving the liquidity risk reporting system, so as
to ensure that the management is able to keep abreast of the
Group’s liquidity risk level and management situation.
During the Reporting Period, the Company’s liquidity coverage
ratio (LCR) and net stable funding ratio (NSFR) continued
to meet regulatory requirements and maintained enough safe
space.
85
Analysis of
financing
capability and
financing
strategy
The Company has operated in compliance with regulations,
enjoyed a sound reputation as well as strong capital strength,
profitability and debt repayment ability, maintained good
cooperation relationships with commercial banks, and
had sufficient bank credit. As of the end of the Reporting
Period, the total credit line obtained by the Company from
commercial banks amounted to approximately RMB720
billion, demonstrating strong short-term and medium-to-long
term financing abilities. As of the end of the Reporting Period,
after assessment by China Lianhe Credit Rating Co., Ltd., the
credit rating of the Company was AAA and the credit rating
outlook is stable. After comprehensive assessment by Shanghai
Brilliance, the credit rating of the Company was AAA and the
credit rating outlook is stable. After comprehensive assessment
by Standard & Poor’s, the long-term credit rating of the
Company was BBB+ and the credit rating outlook is stable.
After comprehensive assessment by Moody’s, the long-term
credit rating of the Company was Baa1 and the credit rating
outlook is stable.
The Company carried out and continuously optimized and
adjusted its financing planning by taking into account the
market environment and its business demands, to ensure the
balance of the Company’s assets and liabilities structure and
improve the overall efficiency of capital allocation. Meanwhile,
the Company maintained the research on the interest rate and
exchange rate markets and utilized corresponding financial
instruments to avoid risks.
Contingencies
and their impact
on the financial
situation of
the Company
–
86
(III) Analysis of industry operation
For details of the analysis of industry operation, please refer to “Management
Discussion and Analysis and Report of the Board” in this report.
(IV) Analysis of investments
Overall analysis of external equity investments
As of the end of the Reporting Period, the Group’s investment in associates amounted
to RMB21,447 million, representing an increase of RMB1,951 million or 10.01% as
compared to RMB19,496 million at the beginning of the period; and the investment
in joint ventures amounted to RMB999 million, representing a decrease of RMB300
million or 23.09% as compared to RMB1,299 million at the beginning of the period.
For details of the overall situation of the Group’s external equity investment, please
refer to “25. Interest in associates” and “26. Interest in joint ventures” to the “Notes to
the Consolidated Financial Statements” under the “Independent Auditor’s Report and
Consolidated Financial Statements” in this report.
1.
Significant equity investment of the Company
For significant equity investment of the Company, please refer to “24. Investment
in Subsidiaries” to the “Notes to the Consolidated Financial Statements” under
the “Independent Auditor’s Report and Consolidated Financial Statements” of this
report.
2.
The Company had no significant non-equity investment
3.
Financial assets measured at fair value
Unit: Thousand Yuan
Currency: RMB
Item
Balance at
the end of
last year
Balance at
the end of
this year
Investment
income
during the
Reporting
Period
The changed
amount of
fair value
during the
Reporting
Period
Financial assets at fair value through profit
or loss
413,079,384
301,537,757
12,075,336
(3,901,985)
Equity instruments at fair value through other
comprehensive income
124,506
125,860
8,800
(15)
Debt instruments at fair value through other
comprehensive income
16,262,000
10,135,553
101,101
91,080
Derivative financial instruments
(621,700)
(952,660)
2,249,924
(988,058)
4.
There was no major asset restructuring and integration by the Company during the
Reporting Period
87
(V)
Sales of significant assets and equities by the Company during the Reporting
Period
1.
Transfer of 20% equity interest in Jiangsu Equity Exchange
During the Reporting Period, the Resolution on the Transfer of 20% Equity
Interest in Jiangsu Equity Exchange Co., Ltd. was considered and approved at
the fourteenth meeting of the sixth session of the Board of the Company. The
Company proposed to transfer its 20% equity interest in Jiangsu Equity Exchange
to Jiangsu Jincai Investment Co., Ltd. (
江蘇金財投資有限公司
), and authorized
the senior management of the Company to handle relevant matters involved in
this transfer in accordance with laws and regulations. After the Reporting Period,
Jiangsu Equity Exchange completed the industrial and commercial registration
modification procedures for equity change. Currently, the Company’s shareholding
in Jiangsu Equity Exchange, which is a participating subsidiary of the Company,
is 32%.
2.
Disposal of the entire equity interests in AssetMark Financial Holdings, Inc., a
holding subsidiary in the United States
During the Reporting Period, the Resolution on the Disposal of the Entire Equity
Interests in a Holding Subsidiary in the United States, AssetMark Financial
Holdings, Inc., by Way of Direct Agreement was considered and approved at the
ninth meeting of the sixth session of the Board of the Company. The Company
proposed to dispose of the entire 50,873,799 ordinary shares of AssetMark
Financial Holdings, Inc. held by Huatai International Investment Holdings
Limited, an overseas wholly-owned subsidiary of the Company, by way of overall
disposal through direct agreement. During the Reporting Period, the Company
completed the transaction of selling all of its equity interest in AssetMark
Financial Holdings, Inc., a holding subsidiary in the United States, and the final
transaction consideration under the transaction amounted to USD1,793,301,400.
From September 5, 2024, New York time, the Company ceased to hold any equity
interest in AssetMark Financial Holdings, Inc.
(VI) There was no other major disposal, acquisition, replacement or stripping of assets,
or bankruptcy or reorganization, merger or division, restructuring or other similar
situations of the Company during the Reporting Period
88
(VII) Analysis of Key Subsidiaries
Unit: Ten Thousand Yuan
Currency: RMB
Company name
Shareholding
percentage
of the Company
Registered
capital
Total assets
Net assets
Operating
revenue
Total profit
Net profit
Huatai United Securities Co., Ltd.
100%
99,748.00
629,154.58
449,896.34
160,105.40
(32,598.32)
(24,398.92)
Main businesses: securities underwriting and sponsorship (excluding treasury bonds, non-financial corporate debt financing instruments
and financial bond underwriting); financial advisory for securities trading and investment related activities; other businesses approved by
the CSRC.
Huatai Securities (Shanghai) Asset
Management Co., Ltd.
100%
260,000.00
1,040,709.01
946,549.80
174,630.38
113,813.45
88,150.81
Main businesses: securities asset management; publicly offered securities investment funds management. (Businesses that need to be
approved by law shall be carried out upon the approval of relevant authorities)
Huatai International Financial Holdings
Company Limited
100%
HK$
10,200,000,002.00
HK$
148,729,969,900
HK$
24,215,543,900
HK$
20,063,144,300
HK$
7,492,978,700
HK$
7,164,960,800
Main business: holding company
Huatai Purple Gold Investment Co., Ltd.
100%
600,000.00
1,156,248.09
955,428.11
(62,071.05)
(79,126.43)
(58,726.11)
Main businesses: equity investment, debt investment, other fund investments associated with equity investment and debt investment;
investment consulting and investment management for equity investment and debt investment, and financial consulting. (Businesses that
need to be approved by law shall be carried out upon the approval of relevant authorities)
89
Company name
Shareholding
percentage
of the Company
Registered
capital
Total assets
Net assets
Operating
revenue
Total profit
Net profit
Huatai Innovative Investment Co., Ltd.
100%
350,000.00
418,911.79
379,660.47
210.64
(17,808.78)
(12,550.59)
Main businesses: General items: Investment activities with own capital; investment management; hotel management branch operation;
fitness and leisure activities branch operation; laundry services branch operation; typing and copying service branch operation; parking
lot service branch operation; conference and exhibition service branch operation; tourism development project planning and consultation
branch operation; ticketing agency service branch operation. (Except for items subject to approval in accordance with the law, the
business activities shall be carried out on their own in accordance with the business license). Permitted items: accommodation service
branch operation; catering service branch operation; food sales branch operation; high-risk sports (swimming) branch operation. (Items
subject to approval in accordance with the law, the business activities shall be carried out upon the approval of the relevant departments,
and specific business items shall be subject to the approval documents or permits of the relevant departments)
Huatai Futures Co., Ltd.
100%
393,900.00
6,057,640.16
509,901.11
587,920.16
21,497.77
15,880.09
Main businesses: commodities futures brokerage, financial futures brokerage, futures investment consultancy, asset management and fund
sales. (Businesses that need to be approved by law shall be carried out upon the approval of relevant authorities)
Jiangsu Equity Exchange Co., Ltd.
52%
20,000.00
42,719.98
35,179.77
2,575.24
(1,034.64)
244.83
Main businesses: provision of premises, facilities and services for approved listing, registration, custody, trading, financing, settlement,
transfer, dividend distribution and pledge of equity interests, bonds, assets and related financial products and financial derivatives of
unlisted companies, organization and monitoring of trading activities, issuance of market information, trading of listed products in the
trading market as an agent, and provision of consultation services for market participants. (Businesses that need to be approved by law
shall be carried out upon the approval of relevant authorities)
China Southern Asset Management Co., Ltd.
41.16%
36,172.00
1,759,833.55
1,267,467.81
752,260.46
312,388.31
235,159.93
Main businesses: fund raising, fund sales, asset management and other businesses approved by the securities regulatory authority under
the State Council.
Huatai-PineBridge Fund Management Co., Ltd.
49%
20,000.00
385,053.74
227,467.90
231,333.47
97,152.84
72,990.50
Main businesses: fund raising, fund sales, asset management and other businesses approved by the CSRC.
90
Company name
Shareholding
percentage
of the Company
Registered
capital
Total assets
Net assets
Operating
revenue
Total profit
Net profit
Bank of Jiangsu Co., Ltd.
5.03%
1,835,132.4463
395,181,400.00
31,333,859.70
8,081,500.00
4,126,800.00
3,325,816.13
Main businesses: deposits taking from the general public; granting short-term, medium-term and long-term loans; handling domestic
settlements; handing acceptance and discounting of negotiable instruments; issuing financial bonds; acting as an agent for the issue,
honoring and underwriting of government bonds and underwriting of short-term financing bills; buying and selling government bonds,
financial bonds, corporate bonds; engaging in interbank lending; providing letter of credit services and guaranty; acting as an agent
for receipts/payments and insurance business, wealth management, fund sales, precious metal sales, receipts/payments and custody of
collective fund trust scheme; provision of safe deposit boxes; handing entrusted deposits and loans; bank card services; foreign currency
deposits; foreign currency loans; foreign exchange remittances; currency exchange; settlement and sales of foreign exchange, acting as an
agent for forward settlement and sales of foreign exchange; international settlement; proprietary trading and agency for trading of foreign
exchange; interbank foreign exchange lending; trading or acting as an agent for trading in foreign currency securities other than stocks;
credit investigation, consultation and witness services; online banking, and other services approved by the banking regulatory bodies and
relevant authorities. (Businesses that need to be approved by law shall be carried out upon the approval of relevant authorities)
Notes: 1.
In January 2025, Jiangsu Equity Exchange completed the industrial and commercial registration modification procedures for equity change. Currently, the
Company
’
s shareholding in Jiangsu Equity Exchange, which is a participating subsidiary of the Company, is 32%.
2.
The financial data of the Bank of Jiangsu was extracted from the Announcement by Bank of Jiangsu Co., Ltd. on Preliminary Financial Data for the Year
of 2024 disclosed by it.
91
(VIII)
Structured entities controlled by the Company
The structured entities consolidated by the Group mainly refer to the asset management
plans with the Group concurrently serving as the manager or investment advisor and
the investor. The Group carries out a comprehensive assessment of whether the Group
will be significantly affected by variable returns due to the return which the Group is
entitled to for the shares held by it and its remuneration as the manager or investment
advisor of the asset management plan, and according to which, determines whether the
Group is the main responsible party for the asset management plan. As at December 31,
2024, the Group has consolidated 55 structured entities with its total assets reaching
RMB35,722,533,451.62. The book value of the equity of the above consolidated
structured entities held by the Group amounted to RMB32,309,061,587.10. In 2024, the
Group did not provide financial assistance to the above structured entities.
(IX) Other information
1.
Establishment and disposal of subsidiaries by the Company during the Reporting
Period
For details of the establishment and disposal of subsidiaries by the Company
during the Reporting Period, please refer to “24. Investment in Subsidiaries” to
the “Notes to the Consolidated Financial Statements” under the “Independent
Auditor’s Report and Consolidated Financial Statements” of this report.
2.
The establishment and disposal of the Company
’
s securities branch offices and
securities branches during the Reporting Period
During the Reporting Period, the Company relocated and renamed 6 securities
branch offices, and no securities branch offices were newly established or
cancelled; 5 securities branch was newly established and 27 securities branches
were relocated and renamed, and no securities branch was cancelled.
As of the end of the Reporting Period, the Company has 27 securities branch
offices and 248 securities branches. For details, please refer to “Appendix II. List
of Branch Offices and Securities Branches” in this report.
(1)
Relocation and rename of securities branch offices during the Reporting
Period
No.
Name before relocation
and change of name
Name after relocation
and change of name
Address after relocation
and change of name
Issue date
of license
1
Fujian Branch of
Huatai Securities
Fujian Branch of
Huatai Securities
Units 10D, 10C Block A, Tefang
Portman Wealth Center, No. 81
Zhanhong Road, Siming District,
Xiamen
July 31, 2024
92
No.
Name before relocation
and change of name
Name after relocation
and change of name
Address after relocation
and change of name
Issue date
of license
2
Shandong Branch of
Huatai Securities
Shandong Branch of
Huatai Securities
Rooms 2101, 2102, 2103, 2104, Block
A, Yinfeng Fortune Plaza, No. 1 West
Long’ao Road, Longdong Street, Lixia
District, Jinan City, Shandong
Province
September 3, 2024
3
Yangzhou Branch of
Huatai Securities
Yangzhou Branch of
Huatai Securities
2015, 2016, 2017, 2113, 2114, 2115,
2116, 2117, 2118, 2201, 2202, 2219,
2220, 2221, 2222, 2223, 2224,
Block 6, Changjian Square, No.276
Jinghuacheng Road, Hanjiang District,
Yangzhou City
September 19, 2024
4
Xuzhou Branch of
Huatai Securities
Xuzhou Branch of
Huatai Securities
1-1601, Building 6 (previously 9), Area
3, Financial Service Center, Huaihai
Economic Zone, No. 1 Qinjun Road,
Yunlong District, Xuzhou City
November 1, 2024
5
Zhenjiang Branch of
Huatai Securities
Securities Branch of
Huatai Securities in
Huangshan South Road,
Zhenjiang
Rooms 101, 201, 301, Block 1,
Huangshan Yaju, No. 6 Huangshan
South Road, Zhenjiang City, Jiangsu
Province
November 13, 2024
6
Yunnan Branch of
Huatai Securities
Yunnan Branch of
Huatai Securities
2505B-2508, 25/F, China Merchants
Bank Tower, No. 1 Chongren Street,
Wuhua District, Kunming, Yunnan
Province
December 26, 2024
(2)
Newly established securities branches during the Reporting Period
No.
Name of Securities Branches
Address
Issue Date of License
1
Securities Branch of Huatai Securities in
Dongguan International Trade Center
Room 3303, Building 2, International
Trade Center, No. 1 Hongfu East
Road, Dongcheng Street, Dongguan City,
Guangdong Province
January 15, 2024
2
Securities Branch of Huatai Securities in
Zhongshan East Road, Ningbo
Room 1906, No. 1800 Zhongshan East
Road, Shops No. 223 and No. 225 on
Songxia Street, Fuming Street, Yinzhou
District, Ningbo City, Zhejiang Province
January 22, 2024
3
Securities Branch of Huatai Securities in
Jianguo Road, Beijing
Unit 02, inside 501, 5/F, No. 77, Jianguo
Road, Chaoyang District, Beijing
April 25, 2024
4
Securities Branch of Huatai Securities in
Qingyun Street, Yiwu
1-2/F, Nos. 656, 658, 660, Qingyun Street,
Choucheng Street, Yiwu City, Zhejiang
Province
July 3, 2024
5
Securities Branch of Huatai Securities in
Binjiang Avenue, Pudong New District,
Shanghai
Room 101, 1/F Lobby, No. 12 Dongfang
Road, China (Shanghai) Pilot Free Trade
Zone
December 3, 2024
93
(3)
Relocation and rename of securities branches during the Reporting Period
No.
Name before relocation
and change of name
Name after relocation
and change of name
Address after relocation
and change of name
Issue date
of license
1
Securities Branch of Huatai
Securities in Wenyi
North Road, Xi’an
Securities Branch of
Huatai Securities in
Zhuque Street, Xi’an
18/F, Xindi City, CapitaMall, No. 64
West Section of South Second Ring
Road, Yanta District, Xi’an City,
Shaanxi Province
January 8, 2024
2
Securities Branch of Huatai
Securities in Zhenzhu
South Road, Lishui
Securities Branch of
Huatai Securities in
Zhenzhu North Road,
Lishui
No. 218-13, Zhenzhu North Road,
Economic Development Zone, Lishui
District, Nanjing City, Jiangsu
Province
January 9, 2024
3
Securities Branch of Huatai
Securities in Wenchang
West Road, Yangzhou
Securities Branch of
Huatai Securities in
Changjian Center,
Museum Road,
Yangzhou
6-2001, 2002, 2019, 2020, 2021, 2022,
2023, 2024, 20/F, Changjian Center,
No. 364 Museum Road, Hanjiang
District, Yangzhou City
January 9, 2024
4
Securities Branch of Huatai
Securities in Wulipai,
Yueyang
Securities Branch of
Huatai Securities in
Yueyang Avenue,
Yueyang
Rooms 1818, 1819, 1820, Building 4,
Wanxiang Ruicheng, No. 219
Yueyang Avenue West, Yueyanglou
District, Yueyang City
January 12, 2024
5
Securities Branch of Huatai
Securities in Xinhua East
Street, Saihan District,
Hohhot
Securities Branch of
Huatai Securities in
Xinhua East Street,
Hohhot
No. 1, 1-2/F, Orient Restaurant, West
Area of Tuanjie Community, Xinhua
East Street, Yingxin Road, Xincheng
District, Hohhot City, Inner Mongolia
Autonomous Region
February 1, 2024
6
Securities Branch of Huatai
Securities in Taiping
South Road, Taicang
Securities Branch of
Huatai Securities in
Taiping South Road,
Taicang
1-2/F, Building 1, No. 36 Taiping South
Road, Chengxiang Town, Taicang City
February 1, 2024
7
Securities Branch of Huatai
Securities in Chengde
North Road, Huaiyin,
Huai’an
Securities Branch of
Huatai Securities in
Fuyu Road, Huai’an
Room 101, Block 1, No. 3 Fuyu
Road, Economic and Technological
Development Zone, Huai’an
February 1, 2024
8
Securities Branch of Huatai
Securities in Yuncheng
West Road, Guangzhou
Securities Branch of
Huatai Securities in
Yuncheng East Road,
Guangzhou
Units 201, 202, 203, 204, 205, No. 561
Yuncheng East Road, Baiyun District,
Guangzhou City
February 2, 2024
9
Securities Branch of Huatai
Securities in Liuting
Street, Ningbo
Securities Branch of
Huatai Securities in
Liuting Street, Ningbo
1-15, 3-29, 3-30, 3-31, 3-32, 3-33,
3-34 of No. 230, Liuting Street,
Haishu District, Ningbo City,
Zhejiang Province
April 16, 2024
94
No.
Name before relocation
and change of name
Name after relocation
and change of name
Address after relocation
and change of name
Issue date
of license
10
Securities Branch of Huatai
Securities in Zhongshan
East Road, Ningbo
Securities Branch of
Huatai Securities in
Zhongshan East Road
Room 1906, No. 1800 Zhongshan East
Road, Shops No. 223 and No. 225
on Songxia Street, Fuming Street,
Yinzhou District, Ningbo City,
Zhejiang Province
April 17, 2024
11
Securities Branch of Huatai
Securities in Supu Road,
Nanchang
Securities Branch of
Huatai Securities
in Yanjiang North
Avenue, Nanchang
2# Hotel of Peace International Hotel,
Rooms 107, 803 and 804 of Office
Building, No. 69, Yanjiang North
Road, Donghu District, Nanchang
City, Jiangxi Province
April 22, 2024
12
Securities Branch of Huatai
Securities in Guangrong
Street, Shenyang
Securities Branch of
Huatai Securities in
Guangrong Street,
Shenyang
(0300) No. 23, Guangrong Street, Heping
District, Shenyang City, Liaoning
Province
April 22, 2024
13
Securities Branch of Huatai
Securities in Qiushi
Road, Hangzhou
Securities Branch of
Huatai Securities
in Xueyuan Road,
Hangzhou
Units 02/03/04-1, 13/F above ground,
Building 9, Huanglong International
Center, No.77 Xueyuan Road, Cuiyuan
Street, Xihu District, Hangzhou City,
Zhejiang Province
April 23, 2024
14
Securities Branch of Huatai
Securities in Changhong
North Road, Xiangyang
Securities Branch of
Huatai Securities in
Hanjiang North Road,
Xiangyang
Block 1, Wall Street, No. 115 Hanjiang
North Road, Fancheng District,
Xiangyang City, Hubei Province
May 20, 2024
15
Securities Branch of Huatai
Securities in Xianxia
Road, Changning
District, Shanghai
Securities Branch of
Huatai Securities in
Rushan Road, Pudong
New District, Shanghai
Area A of Ground Floor and Area B of
Second Floor, Nos. 229, 231, Rushan
Road, China (Shanghai) Pilot Free
Trade Zone
June 7, 2024
16
Securities Branch of Huatai
Securities in Huanshi
East Road, Guangzhou
Securities Branch of
Huatai Securities
in Haizhu Plaza,
Guangzhou
04, 05, 06, 25/F, No. 13 Qiaoguang West
Road, Yuexiu District, Guangzhou
City
July 17, 2024
17
Securities Branch of Huatai
Securities in West
Avenue, Zhouzhuang
Town, Jiangyin
Securities Branch of
Huatai Securities
in West Avenue,
Zhouzhuang Town,
Jiangyin
No. 628 Zhouzhuang West Avenue,
Zhouzhuang Town, Jiangyin City
July 22, 2024
18
Securities Branch of Huatai
Securities in Renmin
East Road, Suining,
Xuzhou
Securities Branch of
Huatai Securities in
Suihe North Road,
Suining, Xuzhou
Southeast Corner, 1/F, Building 2,
Business Service Center, New
Economic and Technology Park,
No. 223 Suihe North Road, Suining
County, Xuzhou City, Jiangsu
Province
August 26, 2024
95
No.
Name before relocation
and change of name
Name after relocation
and change of name
Address after relocation
and change of name
Issue date
of license
19
Securities Branch of Huatai
Securities in Zhongxin
Avenue, Taizhou
Securities Branch of
Huatai Securities in
Zhongxin Avenue,
Taizhou
Room 801, Block 2, Yuanjing Center,
Baiyun Street, Jiaojiang District,
Taizhou City, Zhejiang Province
September 3, 2024
20
Securities Branch of Huatai
Securities in Tianfu
Avenue, Chengdu
Securities Branch of
Huatai Securities
in Tianfu Avenue,
Chengdu
Nos. 1401 and 04 (self-numbered), 14/
F, Block 1, No. 588 Middle Section of
Tianfu Avenue, Hitech Zone, Chengdu
City, China (Sichuan) Pilot Free Trade
Zone
September 11,
2024
21
Securities Branch of Huatai
Securities in Middle
Renmin Road, Jingjiang
Securities Branch of
Huatai Securities
in Fuyang Road,
Jingjiang
101, Block A3, Financial Business
District, No. 2 Fuyang Road, Jingjiang
City
November 1, 2024
22
Securities Branch of Huatai
Securities in Heping
Road, Xuzhou
Securities Branch of
Huatai Securities in
Qinjun Road, Xuzhou
1-104, Building 6 (previously 9), Area
3, Financial Service Center, Huaihai
Economic Zone, No. 1 Qinjun Road,
Yunlong District, Xuzhou City
November 1, 2024
23
Securities Branch of Huatai
Securities in Lianhe
Road, Dalian
Securities Branch of
Huatai Securities in
Gangxing Road, Dalian
Rooms 01, 02 & 03-1, 13/F, Exchange
Square, No. 40 Gangxing Road,
Zhongshan District, Dalian City,
Liaoning Province
November 26,
2024
24
Securities Branch of Huatai
Securities in Guobin
Road, Yangpu District,
Shanghai
Securities Branch of
Huatai Securities
in Feihong Road,
Hongkou District,
Shanghai
Units 2803, 2804, 2805, 2806, Building
1, No. 118, Feihong Road, Hongkou
District, Shanghai
December 13,
2024
25
Securities Branch of Huatai
Securities in Yongle
Road, Wuxi
Securities Branch of
Huatai Securities in
Hefeng Road, Wuxi
102-2, 103-2, Building 1, Huiye Business
Plaza, No. 32 Hefeng Road, Xinwu
District, Wuxi City
December 25,
2024
26
Securities Branch of Huatai
Securities in Wuluo
Road, Wuhan
Securities Branch of
Huatai Securities
in Zhongbei Road,
Wuhan
Nos. 02, 03, 05, 10, 37/F (42/F of
elevator), Block T1, and Part Shop
No. 7, 1/F, Block T3, Phase II of
Changchenghui, No. 9 Zhongbei Road,
Wuchang District, Wuhan City, Hubei
Province
December 25,
2024
27
Securities Branch of Huatai
Securities in Huanghe
Road, Shanghai
Securities Branch of
Huatai Securities in
Longqi Road, Xuhui
District, Shanghai
Rooms 0101 & 0102, 1/F, and Room
0501, 5/F (actually 4/F), Block 1, No.
158, Longqi Road, Xuhui District,
Shanghai
December 31,
2024
96
3.
Standardization of accounts such as unqualified accounts, judicially frozen
accounts, risk disposal accounts, and pure fund accounts
As of December 31, 2024, the Company had 3,929 unqualified securities accounts,
3,744 judicially frozen securities accounts, 82,229 risk disposal securities
accounts, and 753,972 pure capital accounts.
Account standardization has reached the following quality standards: (1) Except
for restricted use of dormant securities accounts, remaining unqualified securities
accounts, judicially frozen accounts, risk disposal accounts, etc., the accounts
engaging in normal trading activities are all qualified accounts. (2) Regular
comparison of funds and securities account information was made to verify the
consistency of key information such as customer names and numbers to prevent
the addition of unqualified accounts. Key information inconsistencies due to
special circumstances such as differences in information rules between the
depository bank and the registered company or unusual word processing have been
explained on a case-by-case basis.
Relevant measures for long-term and standardized management of accounts: (1)
The daily management of accounts was strengthened and the real-name system
requirements for account business were strictly implemented. Through face
recognition technology, combined with ID card readers, public security network
verification, mobile phone number verification by relevant operator, the Group has
strengthened investor identity information identification, continued to innovate
account management measures and improve standard long-term management
mechanisms of accounts. (2) Based on the construction of the Company’s
comprehensive account management system, the Group has solidified the service
support capabilities of its operation stack. The Group continuously optimized its
integrated management platform of customers’ basic information and its integrated
agreement management platform, upgraded customers’ file management system,
strengthened the management of business handling files of customer accounts
through Internet channels, and continued to do its best in the physical and
electronic management of customer account business files.
VII. DISCUSSION AND ANALYSIS OF THE COMPANY’S FUTURE DEVELOPMENT
(I)
Competition landscape and trend of the industry
At present, China is facing global changes interwoven with a new round of
technological revolution, industrial reshaping and economic transition, while the
transformation of old growth divers of the macro economy and industrial development
into new ones is speeding up. With the release of the new guideline on strengthening
regulation, forestalling risks and promoting the high-quality development of the capital
market (
新
“
國九條
”) and the “1+N” policy system, the capital market has entered a new
stage of comprehensive deepening of reform, accelerating high-quality development on
the basis of strong supervision and risk prevention. The key role and pivotal function of
the capital market will become more prominent in promoting the development of new
productive forces, supporting the construction of a modernized industrial system and
serving the high-quality development of the real economy, and the securities industry
will usher in a new round of opportunities for transformation and development. At
the same time, there are multiple complexities and uncertainties in global economic
performance and financial market development, which will also bring new challenges to
the development of the securities industry.
97
First, a new round of reform and opening-up in the capital market will push the
securities industry into a new stage of high-quality development. The new guideline on
strengthening regulation, forestalling risks and promoting the high-quality development
of the capital market (
新
“
國九條
”) outlines the reform blueprint, the meeting of the
Political Bureau of the CPC Central Committee proposes to “vigorously boost the
capital market”, and the central bank introduces two innovative monetary policy tools
and a series of other key policies, which will effectively solidify the institutional
foundation for the long-term healthy development of the capital market, and promote
a positive cycle of “capital-investment-assets”. In the process of accelerating the
reform and opening-up in the capital market and deepening comprehensive reform in
investment and financing in the capital market, the high-quality development of the
securities industry has accelerated and expanded in depth, and the financial functions
of the “service provider” for direct financing, the “gatekeeper” for the capital market,
and the “manager” of social wealth will be more fully utilized. Guided by the policies
of differentiated and classified supervision, including building first-class investment
banks and investment institutions, and optimizing the calculation of risk control
indexes of securities companies, high-quality securities companies will embrace an
effectively expanded room for capital, whose efficiency of capital utilization will be
significantly enhanced, and such companies will become better and stronger through
business innovation, organization innovation, M&As and reorganization, etc.; small and
medium-sized securities companies will rely on their own resource endowments and
professional capabilities to achieve specialized and differentiated development.
Second, the transformation and upgrading of business models has placed higher demands
on the core professional competence of the securities industry. Under new policies and
market environment, the underlying logic of the capital market and the development
of the securities industry is undergoing profound changes. It is more important for
securities companies to adhere to the customer-oriented philosophy, deeply cultivate the
differentiated and diversified needs of customers, continue to make efforts in optimizing
and upgrading the business and service models as well as improving and polishing the
core competencies, and strive to promote transformation in several aspects: in terms of
enterprise customer services, based on the logic of industrial development, securities
companies should enhance their insights into underlying assets, build multi-product and
multi-market comprehensive service capability systems around the objective needs of
the entire lifecycle of enterprises, and help enterprises to grow and expand; in terms
of institutional customer services, securities companies should fully integrate their
business resources, enhance their investment research and pricing capabilities, and more
fully satisfy the needs of institutional investors for comprehensive financial services; in
terms of wealth customer services, securities companies should continue to strengthen
their buyer-side investment advisory business models and provide more professional
and high-quality trading and asset allocation services, so as to create professional values
in different cycles for their customers. On this basis, a more balanced business structure
and stronger risk prevention capabilities will become the cornerstone for the stable
development of securities companies.
98
Third, technology empowerment and digital transformation will facilitate the reform of
the development model of the securities industry. Digital transformation has become
a core driver for reforms in the operation, service and business models of brokers.
Currently, the accelerated development of artificial intelligence technology represented
by generative AI is reshaping the service model and underlying logic of the securities
industry. The securities industry is entering a new era in which technology empowers
profound changes in business development and management operations. Against the
backdrop of continuous enrichment and popularization of artificial intelligence and other
new technological application scenarios, the promotion of comprehensive digitization
and greater intelligence of the front, middle and back ends with data elements as the
underlying driver will bring about an all-round reshaping of the upgrading of business
models, innovation of business models and enhancement of management efficiencies
for securities companies. Digital transformation has become an irreversible trend in
the securities industry. Promoting the in-depth integration of technology with business
development will become an important tool for securities companies to enhance their
value creation and market competitiveness.
Fourth, enhanced international deployment and expansion will open up new
development opportunities for the securities industry. In recent years, with the
development and transformation of China’s economy, Chinese enterprises are
accelerating their overseas deployment and actively promoting global capital operations,
and the global asset allocation for residents’ wealth and institutional investors has
also become a major trend, resulting in the continuous growth of customers’ demand
for cross-border investment and financing. At the same time, the policy efforts for
high-level financial openness are increasing, the two-way opening of markets, products
and institutions is continuously advancing, and a number of policies and initiatives,
such as the improvement and deepening of the interconnection mechanism of the capital
market and the implementation of the “Cross-boundary Wealth Management Connect”
pilot, have been successively introduced, all of which provide favorable conditions
for the deepening of the cross-border business development and the international
deployment of securities companies. Putting more effort into the development and
deployment of overseas business and continuously enhancing core capabilities when
participating in international market competition have become the inevitable direction
and important choice for building a first-class investment bank.
99
(II) The Company
’
s development strategy
1.
Strategic vision: Striving to become a first-class investment bank with both
domestic advantages and global influence.
2.
Service philosophy: Being customer-oriented, and upholding “One Customer”
internally and “One Huatai” externally, to be accountable to all clients,
shareholders, staff and society to achieve harmony and unity.
3.
Strategic orientation: By adhering to the development philosophy of serving the
country and people as a financial institution and the idea of customer orientation,
focusing on its principal business of capital market services, the Group adheres
to the right path and seeks for innovation, pursuing advancement in the course
of revolution, and devoting efforts to creating a brand-new business model
of two-pronged, cross-border linkage and ecological interaction of wealth
management and institutional services with technology empowerment; enhancing
platform-based, integrated and international development; implementing a
differentiated competitive tactic of “investment banking gene + full business
chain” to build core competitiveness of future-oriented and cycle-spanning
digital and intelligent development and develop significant leading edge and
brand influence in key customer groups, key industries and key regions with an
commitment to being a pioneer of industry reform and innovation and a promoter
of sustainable development; maintaining its industry-leading position in terms of
quality development, better performing the strategic responsibilities to serve the
quality development of the real economy and finance, facilitate the construction of
modern industry system and create professional an social value.
(III) Business operation plan
Please refer to “Management Discussion and Analysis and Report of the Board” in this
report.
(IV) The Company
’
s capital needs to sustain the current business and complete the
ongoing investment projects
During the Reporting Period, all businesses of the Company were carried out in an
orderly manner. Due to its business nature as a securities company, the Company
has a huge capital demand, which changes with market fluctuations. The Company
continuously enhances capital management, improves efficiency in resources allocation,
constantly diversifies financing varieties, expands financing channels and reasonably
arranges financing maturity to guarantee the capital needs for various businesses. As of
the end of the Reporting Period, the total balance of onshore and offshore long-term and
short-term borrowings, bonds payable, short term financing funds payable, placement
from other financial institutions and financial assets sold under repurchase agreements
of the Company was RMB298.837 billion. The Company will continue to enhance
onshore and offshore capital management and select appropriate financing instruments
to raise funds based on the needs in business development. It will continue to explore
new financing varieties and methods, improve the financing capability and optimize
the capital structure of the Company to guarantee the fund demand for business
development.
100
(V)
Potential risks
1.
Overview of risk management
The Company attached great importance to risk management. According to
regulatory requirements and the actual situation of business development, the
Company established a relatively comprehensive overall risk management system
based on the core concepts of full staff engagement, full coverage and full
penetration. The Company has a solid and effective risk management framework
with clearly defined responsibilities and staff at all levels performing their duties
effectively; the Company worked out a risk appetite and tolerance system, which is
organically integrated with the development strategy, and established a multi-level
comprehensive risk management system covering all aspects of business
operation and management; in addition, the Company vigorously promoted the
construction of group-wide risk-management technology system and established
centralized, time-based, quantitative and penetrable pillars for risk management
technologies, to improve the effectiveness of risk management of the Group and
further strengthen the Group’s overall risk identification, quantitative evaluation
and risk control capabilities. The Company incorporated its subsidiaries into the
overall risk management system of the Group and explored the construction of an
effective risk management model for subsidiaries. The overall risk management
system of the Company ran effectively, which earnestly guaranteed the continuous
and healthy development of various businesses of the Company.
During the Reporting Period, the Company focused on the eternal theme of risk
prevention and control, and comprehensively promoted various risk management
efforts under the guidance of its internationalization strategy. The Company
insisted on focusing on key businesses and high-risk areas, strengthened the
effectiveness of the implementation of key risk control measures, built risk
management capabilities that go deep into the essence of the business, and
enhanced the foresight capabilities in risk identification and prevention and
mitigation, so as to safeguard the high-quality and smooth development of its
business. The Company continued to consolidate and improve its risk management
system and mechanisms, enhanced its risk management and control capability
in the whole business process, deepened the capital-intensive orientation,
strengthened the traction of risk management assessment, and promoted the
risk culture of moving forward with steady progress. The Company integrated
the strength of science and technology, comprehensively upgraded its risk
management platform, further built a risk measurement capability base, and
enhanced its ability to monitor and accurately measure risks in a forward-looking
manner.
101
2.
Risk management structure
Board of Directors
Supervisory Committee
Senior Management
Chief Risk Officer
All Branches
All Subsidiaries
Risk Management
Department
Capital Operation
Department
Information
Technology
Department
Other Departments
Other Professional
Risk Management
Department
Strategic
Development
Department
The risk management organizational structure of the Company covers five major
parts: the Board and Compliance and Risk Management Committee; Supervisory
Committee; the Senior Management; Risk Management Department and other risk
management departments; other departments, branches and subsidiaries.
The Board is ultimately responsible for overall risk management and is
responsible for reviewing and approving the basic system relating to the overall
risk management of the Company, approving the risk appetite, risk tolerance and
major risk limits of the Company, and reviewing periodic risk assessment reports
of the Company. The Compliance and Risk Management Committee is set up by
the Board to undertake risk management responsibilities including reviewing and
making recommendations on overall risk management targets and fundamental
policies; evaluating and making recommendations on the risks of major decisions
which require the Board’s review, as well as the solutions to these risks; reviewing
and making recommendations on risk assessment reports which require the
Board’s review. The Supervisory Committee of the Company is responsible for
supervising overall risk management, supervising and inspecting the Board and
the senior management on the performance of their duties of risk management,
and urging them to make rectifications. Based on the authorization and approval
of the Board and the operation objectives of the Company, the senior management
is specifically responsible for the implementation of risk management and assumes
the primary responsibility for overall risk management. The chief risk officer
of the Company is responsible for leading the overall risk management of the
Company.
102
The Company appoints the risk management department to perform the overall risk
management duties and take the lead in managing the market risk, credit risk and
operational risk of the Company; appoints the capital operation department to take
the lead in managing the liquidity risk of the Company; appoints the information
technology department to take the lead in managing the information technology
risk of the Company; and appoints the strategic development department to take
the lead in managing the reputation risk of the Company. Other departments,
branches and subsidiaries of the Company are responsible for the management of
various risks in their respective lines, implementing various policies, procedures
and measures formulated by the Company and each risk management department,
accepting guidance from each risk management department and assigning the risk
management duties and implementation responsibilities. The audit department
incorporates overall risk management into the audit scope, makes independent
and objective reviews and evaluation on the adequacy and effectiveness of overall
risk management, and is responsible for taking the lead or entrusting external
professional institutions to evaluate the overall risk management system of the
Company regularly.
3.
Market Risk
Market risk refers to the risk of asset loss of the Company resulting from
fluctuations in risk factors, including stock prices, interest rates, exchange rates
and commodities.
During the Reporting Period, the global capital market fluctuated significantly
due to the combined effects of multiple complexities. The Company adhered to
the concept of value creation through trading and risk control through hedging,
actively controlled its risk exposure and managed the market risk of holding assets
through various risks control measures. The Company continuously optimized the
unified risk limitation system and controlled business risks from various aspects,
such as Market Value at Risk (VAR), stop-loss, stress testing, sensitivity, etc. The
Company continued to improve its stress testing system and regularly calculated
the impacts of various extreme risks, identified and evaluated tail risk resilience.
In respect of investments in equity securities, given market volatility, the Company
managed market risks through various manners such as risk exposure control,
derivatives hedging and diversification of investment subjects, and actively
explored trading opportunities while ensuring the risks of assets controllable. In
respect of fixed-income securities investment, the Company effectively hedged
market risk with interest rate derivatives and adjusted the position structure to
respond to the impacts of interest rate fluctuations on the term and structure of
investment portfolios, and actively sought opportunities for pricing deviations
to enhance overall income while controlling overall duration, basis point value
and VAR value. In respect of derivatives business, the Company adopted market
neutral strategy for the OTC derivatives business and controlled the Greeks values
(such as Delta, Gamma, Vega, etc.) exposure risks within acceptable limits. It
created profit opportunities with risks under control.
103
Market Value at Risk (VAR) of the Company
Unit: Ten Thousand Yuan
Currency: RMB
Forward-looking Period: 1 day; Confidence: 95%; Historical Analogical Method
The Company
The Group
As at the
end of 2024
As at the
end of 2023
As at the
end of 2024
As at the
end of 2023
Equity-sensitive
Financial
Instruments
6,466
7,448
14,184
11,140
Interest-sensitive
Financial
Instruments
4,844
4,092
4,813
4,147
Commodity-sensitive
Financial
Instruments
1,369
989
1,958
957
Overall Portfolio
Risk Value
7,757
7,731
14,140
10,821
Source: Internal statistics of the Company.
During the Reporting Period, Sequence Descriptive Statistics of Market Value
at Risk (VAR) of the Company
Unit: Ten Thousand Yuan
Currency: RMB
Forward-looking Period: 1 day; Confidence: 95%; Historical Analogical Method
At the
beginning of
the period
At the end
of the period
Maximum
value
Minimum
value
The Group
10,821
14,140
17,868
8,358
The Company
7,731
7,757
14,038
5,983
Source: Internal statistics of the Company.
104
4.
Credit risk
Credit risk refers to the risk of loss of the Company that may result from the
default of a financing party or issuer or counterparty in financing, investment,
trading and other businesses.
During the Reporting Period, amidst the volatile macro-economic situation at home
and abroad, market competition within the industry intensified. The Company
kept abreast of regulatory policy developments and continued to strengthen the
whole process of credit risk management to ensure the smooth development of
its business. During the Reporting Period, the Company’s exposure to credit risk
was generally controllable and no significant credit risk events occurred. With
respect to financing business, the Company implemented stringent management
measures through continuous monitoring over risky customers and risky assets
and timely risk mitigation. It optimized the response mechanism for individual
stock delisting risks, intensified the management of business counter-cyclical
adjustments, flexibly adjusted the risk structure of the business to keep routine
business risks under control and prevent bottom-line risks. With respect to
investment business, the Company continued to optimize and improve the unified
management system and systematic construction of credit bond subjects for the
Group’s various business lines. It strengthened the whole process management
measures such as access management, analysis and pre-warning of bond positions,
and normalized screening and disposal of risky securities, while at the same time,
it adjusted the risk management plan in a timely manner according to changes in
the regulatory policies of the key industries, so as to enhance the effectiveness
of the Group’s prevention and control of credit risks exposed by issuers. With
respect to trading business, the Company constantly optimized and improved the
unified management system and systematic construction of counterparties at the
Group level by implementing strict counterparty credit management mechanism.
It strengthened continuous monitoring during the duration and annual review
mechanism, and enhanced the effectiveness of risk management in the whole
process of the business. With respect to guaranteed settlement business, the
Company continued to improve the front-end control and promote the systematic
construction of the design of risk indicators, and strengthened the ability of risk
event handling and risk transmission management.
5.
Liquidity risk
Liquidity risk refers to the risk that the Company cannot obtain sufficient funds
at reasonable costs in time to repay due debts, perform other payment obligations
and meet the capital requirements for carrying out businesses as normal.
The Company has always attached importance to liquidity safety, preferred
a “sound and safe” liquidity risk preference, followed the general principle
of comprehensiveness, importance, applicability, effectiveness, prudence and
foresight, and continued to strengthen the identification, measurement, monitoring
and control mechanisms of liquidity risks through a management model of
centralized management and stratified prevention and control, to improve the
Company’s liquidity risk management level. On the basis of controlling overall
liquidity risks, the Company identified potential liquidity risks of all business
lines from the source by new business evaluation process and regular analysis
105
of existing liquidity risk, and proposed targeted control measures. The Company
has established a liquidity indicator analysis framework including cash flow,
and appropriately set risk limits and implemented daily monitoring through the
information technology system, to improve monitoring frequency and control
level of liquidity risks. The Company regularly and occasionally conducted
special stress tests on liquidity risks, and took targeted measures to improve the
Company’s liquidity risk resilience. In order to ensure that liquidity needs can be
met in a timely manner under stress, the Company has established a high-quality
liquid asset reserve of an appropriate scale based on risk preferences. At the
same time, it has expanded its debt financing channels and quotas from multiple
perspectives, and continued to improve the Company’s general and emergency
financing capabilities. The Company established liquidity risk emergency plans,
carried out regular drills and continuously improved its liquidity risk emergency
managing mechanism according to the Company’s condition. In addition, the
Company constantly strengthened its subsidiary liquidity risk management with the
consolidation supervision pilot as an effective means, to improve the subsidiaries’
response capability to liquidity risks and the Group’s prevention and control
level of overall liquidity risks. During the Reporting Period, the Company’s
liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) continued to
remain at a level that can meet regulatory requirements and far beyond the safety
requirements.
6.
Operational risks
Operational risk refers to risk on losses caused by inadequate or problematic
internal procedures, personnel, information technology systems and external
events.
During the Reporting Period, the Company comprehensively promoted the
implementation of the Guidelines on Operational Risk Management for Securities
Companies within the Group, revised internal systems, optimized and improved
the supporting management mechanism, strengthened collaborative management
of operational risks and internal information sharing, and continued to improve
the operational risk management system. The Company focused on important
businesses and major areas to carry out assessments and inspections, strengthened
the identification of operational risk points and processes with inadequate control,
and enhanced the quality and efficiency in discovering issues and preventing risks;
it organized to sort out business continuity plans and emergency response plans,
and carried out emergency response drills to further improve the Company’s level
of ensuring business continuity; and it continued to optimize the construction of
systems and platforms, consolidate the platform-based control system and enhance
the ability of closed-loop control and management of operational risks.
106
7.
Compliance risk
Compliance risk refers to exposure to property loss or business reputation loss
as a result of bearing legal responsibility, supervisory measures or disciplinary
sanctions imposed on securities companies due to violation of laws, regulations
and standards by operational management or professional conduct performed by
securities companies or their employees.
During the Reporting Period, the Company thoroughly implemented the new
guideline on strengthening regulation, forestalling risks and promoting the high-
quality development of the capital market (
新
“
國九條
”) and the “1+N” policy
requirements on the capital market, continuously optimized the compliance
management system from system, concept, method and other dimensions, and
made efforts to realize the work objective of “seeing clearly, managing well
and doing a good job” by preventing minimal risks at an early stage, so as to
continuously build a core competitive advantage in compliance. The Company
strengthened business synergy in support of business innovation and enhanced
understanding of business nature to facilitate the stable implementation of new
business and new models; it enhanced compliance inspections to focus on key
business and key processes and follow up on the implementation of corrections; it
improved the Group’s integrated compliance management mechanism, especially
for overseas subsidiaries, and strengthened compliance synergy and control
among Group members; it comprehensively promoted the ability development
of stereoscopic compliance and digital compliance system, built a base for
professional and efficient digital compliance capacity, and further enhanced the
internal research level for core systems; it built a long-term management and
control mechanism for clean and compliant business development by carrying
out warning education and integrity and compliance culture construction for all
employees in key lines and positions, improved the system and regulations on
employees’ investment behavior by clarifying management responsibilities in
accordance with the principle of “whoever manages, whoever is responsible for”,
enhancing internal monitoring and self-inspection and self-correction by technical
means, optimizing the closed-loop accountability mechanism and ensuring that
non-compliant behavior will be handled strictly with “zero tolerance”; it further
established the lawyer team to raise the execution quality of cases agency
and litigation preservation; and it continuously enhanced the capacity of the
compliance personnel team, so as to better empower the business development in a
compliant manner and enhance the ability to create compliance value.
8.
Money laundering risk
Money laundering risk refers to the risk from the utilization of the Company’s
products or services by criminals to engage in money laundering activities,
terrorist financing and other activities, which lead to negative effects on the
Company in terms of operation, reputation, compliance and other aspects.
During the Reporting Period, the Company strictly fulfilled the anti-money
laundering and counter-terrorist financing obligations of financial institutions
and thoroughly implemented the new Anti-Money Laundering Law and the
work requirements of the relevant regulatory authorities. It incorporated money
laundering risks into the comprehensive risk management system, organized to
carry out self-assessment of the Company’s exposure to money laundering risk,
107
revised the Company’s internal control system for anti-money laundering in
accordance with the latest amended anti-money laundering laws and regulations,
and improved classification and categorized management mechanism of customer
money laundering risk. Furthermore, the Company organized and implemented
customer due diligence, preservation of customer identification information and
transaction records, suspicious transactions reporting, monitoring on money
laundering and sanctioning risk lists, etc. It also promoted the upgrading and
renovation of the anti-money laundering system by digital means, and continued
to improve the suspicious transaction monitoring system. Meanwhile, the
Company launched anti-money laundering publicity and training in various forms,
strengthened internal supervision and inspection, and continued to enhance the
level of money laundering risk management.
9.
Information technology risk
Information technology risk refers to exposure to losses caused by the failure
of the network and information system to ensure the stable, efficient and safe
operation of transaction and business management in terms of business realization,
timely response, solving capacity and network and data security, resulting from
service capability abnormality or data damage and leakage out of internal or
external reasons.
The Company establishes and improves its information technology risk
management system, and keeps improving the information technology risk
management mechanism. During the Reporting Period, the Company strengthened
risk prevention and control in key areas, carried out in-depth investigation and
remediation of hidden dangers, continuously enhanced risk monitoring and early
warning, and solidly promoted the publicity of risk culture to further enhance
its information technology risk management capability and effectiveness. The
Company comprehensively implemented the network security accountability
system and established and improved network and information security technology
guarantee system. The Company formulated an emergency management system for
network security incidents, established and continuously improved the contingency
plan for information system emergencies, and regularly organized drills. During
the Reporting Period, the Company held firm to the bottom line of security, and
important information systems operated smoothly, thus providing a solid guarantee
for the successful development of the Company’s businesses.
10.
Reputational risk
Reputational risk refers to the risk of negative publicity from investors, issuers,
regulators, self-regulatory organizations, the public and the media on the Company
due to its actions or external events and violations of integrity regulations,
professional ethics, business norms and conventions by its staff, thereby damaging
its brand value, disadvantaging its normal operation, and even affecting the market
stability and social stability.
During the Reporting Period, the Company’s reputational risk management
mechanism was running steadily without the occurrence of any significant
reputational risk events. Focusing on its strategy and key business, the Company
continued to intensify its precaution, monitoring and handling reputational risks,
108
which created a good public sentiment for the Company’s development. At
the same time, the Company continued to strengthen group management, prior
management and fast response mechanisms, further enhancing its awareness on
preventing and the ability on response to reputational risk.
11.
Model risk
Model risk refers to the risk of adverse consequences or loss to the Company’s
business resulting from incorrect or inappropriate model design, development or
use.
During the Reporting Period, the Company continued to improve risk management
mechanisms based on the life cycle of models and constantly promoted model risk
management and control by approaches and measures including model validation,
assessment and monitoring during events. The Company continuously developed
and improved the model risk management system adaptive to its own business
development while optimizing the model information database, and established the
function of model version number management based on the platform. During the
Reporting Period, the Company had no major model risk events.
12.
Implementation of overall risk management of the Company during the Reporting
Period
The Company attached great importance to overall risk management. Adhering
to the risk management culture on stability and long-term development and
with controlling risks, improving efficiency and promoting development as the
targets of risk management, the Company sticks to the core risk management idea
with high engagement, full coverage and deep penetration and the management
approach of collectivization, specialization and platformization and continuously
enhances the core competitiveness on risk management.
For the full coverage of risks, the comprehensive risk management of the
Company covers all domestic and overseas subsidiaries, branches and
business lines for major risk types. The Company raised clear requirements to
subsidiaries on issues including the construction of the risk management system,
risk management policies and indicator system, risk management personnel
allocation and assessment and risk reports, and set up differentiated rules for
risk management. All risk management departments of the Company fulfilled the
management responsibility on market risk, credit risk, liquidity risk, operational
risk, reputational risk and information technology risk through in-depth linkage
and conducted risk identification, prudent assessment, dynamic monitoring, and
timely reporting and response for all risks and businesses before, during and after
each operation.
For the surveillance of risks, the Company continued to improve the promptness
and accurate presentation of risk surveillance and analysis. The Company further
implemented its business strategies, continued to deepen the multi-dimensional
and multi-layered risk limitation system with top-to-bottom breakdown and
bottom-to-top summarization and achieved accurate calculation, dynamic
monitoring and timely alarming on risk indicators through platformization to speed
up in realizing integrated and real-time risk monitoring in the Group.
109
For the measurement of risks, the Company continuously improved the model risk
management to develop core technological competitiveness on risk measurement.
The Company carried out evaluation and verification of valuation model and risk
measurement model, and continuously perfected and iterated the measurement
model and built the bottom of technological competence to improve the accuracy
of measurement results and provide measurable technological and fundamental
guarantees for risk management.
For the analysis of risks, the Company established and improved a multi-level risk
reporting system, and further strengthened the breadth and depth of risk analysis,
so as to ensure the timely and effective transfer of risk information among various
levels and departments. The Company increased investment in pressure tests,
continued to improve the establishment of the pressure test system and systematic
functions, enriched pressure test factors and scenario library, optimized analysis
function, further integrated and consolidated the bottom capability on pressure
test.
For risk response, the Company has, based on risk monitoring and analysis results,
formulated certain response strategies including risk avoidance, reduction, transfer
and tolerance matched with different risk appetites and established reasonable
and effective response mechanisms on asset impairment, risk hedging, capital
supplement, scale adjustment, asset and liability management. At the same
time, the Company developed practical risk and crisis response mechanisms
and schemes and continuously improved them through regular exercises to
enhance the capability of the Company on preventing, reacting and resolving
risks. The Company continued to consolidate the systematic implementation of
front-end control and achieve process-based rules and platform-based processes to
practically prevent risks.
The Company provided sufficient support and protection for its comprehensive
risk management in aspects of cultivating a culture, developing policies,
increasing investment, improving the system and recruiting talents. The Company
continued to carry out themed training on risk management and risk management
culture publicity activities covering all employees and intensified efforts in
the publicity and penetration of risk management and the depth of reaching
among all employees. The Company further implemented and optimized risk
management assessments, giving full play to the guiding role of risk assessment.
The Company established a three-dimensional risk management system covering
basic systems, management guidelines and implementation rules and developed
a regular evaluation and revision mechanism for the system, through which the
implementation of the system was included into risk assessment. The Company
attached great importance to risk management and information technology system
construction, and implemented guarantees of resources on risk management and
the establishment of systems. It adhered to the concept of digital transformation,
accumulated risk management capability through systems and platforms
and continuously established a cross-border and integrated platform for risk
management with group-wide coverage and deep penetration, empowering risk
management. The Company intensified its efforts in training and engaging risk
management personnel, enabling the risk management personnel of the Company
continuously meet regulatory requirements.
110
13.
The investment of the Company in compliance risk control during the Reporting
Period
The Company’s investments in compliance risk control mainly include: investment
in compliance risk control personnel, daily operating costs of compliance risk
control and investment in the construction of compliance risk control related
systems. In 2024, on a Parent Company basis, the total investment in compliance
risk control of the Company amounted to RMB685,339,700.
14.
The investment of the Company in information technology during the Reporting
Period
The Company’s investments in information technology mainly include: IT capital
expenditure, daily expenses for operation and maintenance of IT, leasing and
depreciation cost of computer rooms, circuit leasing cost and remuneration of IT
personnel. In 2024, on Parent Company basis, the total investment in information
technology of the Company amounted to RMB2,447,932,700.
(VI) Establishment of the monitoring and complementary mechanism of the Company
’
s
dynamic risk control indicators
1.
Establishment of the monitoring and complementary mechanism of the dynamic
risk control indicators
The dynamic risk control index monitoring and replenishment mechanism is one
of the important measures for the Company to control risks. During the Reporting
Period, with full data, complete functions and normal operation, the dynamic
monitoring system for risk control indicators of the Company can effectively
support the monitoring on the net capital, liquidity and other risk control indicators
of the Company. The Company continuously improved the dynamic monitoring
mechanism for risk control indicators mainly based on net capital and liquidity
and assigned full-time operators to conduct daily monitoring and pre-warning
responses. With stricter corporate monitoring standards as the monitoring
threshold based on the regulatory standards and pre-warning standards for risk
control indicators specified by the CSRC, the Company launched a corresponding
reporting route and response plan according to different pre-warning level and
ensured that the net capital, liquidity and other risk control indicators always
comply with the regulatory requirements. The Company constantly optimized
the function of the net capital and liquidity dynamic monitoring system to ensure
that the dynamic monitoring system can effectively support the monitoring of the
Company’s net capital, liquidity and other risk control indicators.
The Company has established a dynamic complementary mechanism for net capital
and liquidity. The Company’s complementary pathways of net capital include but
are not limited to capital fund raising for increase in capital and share, issuance of
subordinated bonds, compression of highly-risky investment types and scale, and
reduction or suspension of profit distribution, etc. The Company’s complementary
pathways of liquidity include but are not limited to external financing (interbank
borrowing, bond repurchase, corporate bond, subordinated debt, short-term
financing bill, income receipts, refinancing integrated fund, etc.), realization of
part of the liquid reserve, control or adjustment of business scale, etc.
111
2.
Conditions of risk control indicators triggering the pre-warning criteria or not
conforming to the required standards, and corrective measures adopted and
rectification effects during the Reporting Period
During the Reporting Period, the Company conducted prospective estimation or
pressure tests of risk control indicators for profit distribution, capital increase in
and guarantee provision to subsidiaries, engagement in new businesses and other
major events. The above-mentioned matters were implemented under the condition
that the analysis and test results meet the regulatory requirements. During the
Reporting Period, the main risk control indicators of the Company were all in line
with the regulatory requirements, and there were no such circumstances where
the risk control indicators violated the pre-warning standards or were not in
compliance with the standards provided.
VIII. THERE WERE NO CIRCUMSTANCES IN THE COMPANY’S FAILURE TO
MAKE DISCLOSURE IN ACCORDANCE WITH THE STANDARDS DUE TO
THE INAPPLICABILITY OF THE STANDARDS REQUIREMENTS OR SPECIAL
REASONS INCLUDING NATIONAL SECRETS AND TRADE SECRETS
IX.
OTHER DISCLOSURES
(I)
Share capital
For the Company’s share capital for the year ended December 31, 2024, and the details
of changes therein, please refer to “Changes in Shares and Shareholders” in this report.
(II)
Arrangement of pre-emptive rights
According to the provisions of the PRC laws and the Articles of Association, none of
the shareholders of the Company has any pre-emptive rights.
(III) Cancellation of A Shares and reduction of registered capital
On November 24, 2023, the 2023 Second Extraordinary General Meeting, the
2023 Third A Share Class Meeting and the 2023 Third H Share Class Meeting of
the Company considered and approved the Resolution on the Cancellation of the
Repurchased A Shares and Reduction of Registered Capital by the Company, pursuant
to which the Company was approved to cancel the remaining repurchased A Shares
of 45,278,495 shares. During the Reporting Period, the Company completed the
cancellation of repurchased A Shares of 45,278,495 shares, completed the industrial
and commercial registration modification for reduction in registered capital, and
obtained the renewed business license issued by Jiangsu Provincial Market Regulation
Administration. Upon the cancellation, the registered capital of the Company was
RMB9,029,384,840, and the share capital structure of the Company changed to:
7,310,339,160 A Shares, representing 80.96% of the total share capital; 1,719,045,680
H Shares, representing 19.04% of the total share capital.
On June 20, 2024, the 2023 Annual General Meeting, the 2024 First A Share Class
Meeting and the 2024 First H Share Class Meeting of the Company considered and
approved the Resolution on Repurchase and Cancellation of Part of the Restricted A
Shares of the Company, pursuant to which the Company was approved to repurchase
112
and cancel part or all of the restricted A Shares granted to 175 persons but subject to
selling restriction due to non-fully fulfillment of condition of individual performance
by incentive participants, release or termination of employment with the Company
and other circumstances, 2,082,559 shares in total. During the Reporting Period, the
Company completed the repurchase and cancellation of 2,082,559 restricted A Shares,
completed the industrial and commercial registration modification for reduction
in registered capital, and obtained the renewed business license issued by Jiangsu
Provincial Market Regulation Administration. Upon the cancellation, the registered
capital of the Company was RMB9,027,302,281, and the share capital structure of the
Company changed to: 7,308,256,601 A Shares, representing 80.96% of the total share
capital; 1,719,045,680 H Shares, representing 19.04% of the total share capital.
(IV) Sufficient public float
As at the latest practicable date before printing of this annual report, based on the
information available to the public and as far as the Directors are aware of, the Directors
believe that the Company’s public float satisfies the requirements for minimum public
float under Rule 8.08 of the Hong Kong Listing Rules.
(V)
Directors
’
interests in competing business with the Company
None of the Directors of the Company has any interest in the business that competes or
is likely to compete, either directly or indirectly, with the business of the Company.
(VI) Service contracts of Directors and Supervisors
None of the Directors and Supervisors of the Company has entered into any service
contract with the Company or its subsidiaries which shall be compensated (except for
statutory compensation) upon termination within one year.
(VII) Directors
’
and Supervisors
’
interests in material contracts, transactions or
arrangements
During the Reporting Period, the Directors or Supervisors of the Company or entities
that are connected to them did not have material interests, whether directly or indirectly,
in any material contract, transaction or arrangement entered into by the Company or its
subsidiaries.
(VIII)
Permitted indemnity provision-liability insurance for Directors, Supervisors and
senior management
As authorized in 2014 annual general meeting, the Company has provided liability
insurance for Directors, Supervisors, senior management, and other relevant competent
persons. Appropriate insurance coverage has been arranged for Directors, Supervisors
and senior management of the Company against potential legal actions and liabilities
that arise from performing their duties to reasonably avoid management and legal risks
113
faced by Directors, Supervisors and senior management of the Company and to promote
the full discharge of duties by the Directors, Supervisors and senior management of the
Company.
(IX) Profile of Directors, Supervisors and senior management
For profiles of Directors, Supervisors and senior management of the Company, please
refer to “Primary work experience” under “Changes in shareholding structure and
remuneration of current and resigned Directors, Supervisors and senior management
during the Reporting Period” in “Directors, Supervisors and Senior Management” in the
section headed “Corporate Governance” in this report.
(X)
Remuneration policy
For the remuneration and share incentive scheme of Directors, Supervisors and senior
management of the Company, please refer to “Changes in shareholding structure and
remuneration of current and resigned Directors, Supervisors and senior management
during the Reporting Period” and “Remuneration of the Directors, Supervisors and
Senior Management” under “Directors, Supervisors and Senior Management” in the
section headed “Corporate Governance” in this report.
(XI)
Share option scheme
The Company did not establish any share option scheme.
(XII)
Major customers and suppliers
The Group provides services to a wide range of institutional and individual clients
across various sectors. The Group’s clients range from public customers, wealth clients,
high-net-worth individuals, institutional clients to corporate clients, who are primarily
located in China. The successful listing in Hong Kong and London and smooth
implementation of its deployment strategies in the international market will facilitate
the Group in carrying out its overseas operations, exploring customer resources and
boosting for further development of the Group’s businesses. In 2024, the revenue
attributable to the five largest clients of the Group accounted for less than 30% of the
total operating revenue of the Group.
The Group has no major supplier due to the nature of its business.
(XIII)
Relationship with employees, customers, suppliers and persons with important
relationships
For details of the employees’ remuneration and training plans of the Company, please
refer to “Remuneration policy” and “Training programs” under “Information about the
Staff of the Parent Company and Major Subsidiaries at the end of the Reporting Period”
in the section headed “Corporate Governance” in this report. For the relationship
between the Company and its major customers and suppliers, please refer to “Major
customers and suppliers” under “Other Disclosures” in the section headed “Management
Discussion and Analysis and Report of the Board” in this report.
114
(XIV)
Business review
For analysis of business using key financial performance indicators, please refer to
“Company Profile and Key Financial Indicators” of this report.
(XV)
Corporate governance
For the corporate governance condition of the Company, please refer to “Corporate
Governance” of this report.
(XVI)
Tax relief
1.
Shareholders of A Shares
According to the provisions in the Notice on Issues Regarding Differentiated
Individual Income Tax Policy for Dividends and Bonuses of Listed Company
(Cai Shui [2015] No. 101) (
《關於上市公司股息紅利差別化個人所得稅政策有
關問題的通知》
(
財稅
[2015] 101
號
)) and the Notice on Issues Regarding the
Implementation of Differentiated Individual Income Tax Policy for Dividends and
Bonuses of Listed Company (Cai Shui [2012] No. 85) (
《關於實施上市公司股息
紅利差別化個人所得稅政策有關問題的通知》
(
財稅
[2012] 85
號
)) jointly issued
by the Ministry of Finance, State Administration of Taxation and the CSRC, for
individual shareholders of the Company, if the term of shareholding (a period
from the date when the individual acquires the listed shares on public offering
and transferring markets to the date one day before the shares are transferred
and settled) is within one month (inclusive), all the dividend and bonus incomes
thereof are counted as taxable income at the effective tax rate of 20%; if the term
of shareholding is between one month and one year (inclusive), temporarily, 50%
of the dividend and bonus incomes are counted as taxable income at the effective
tax rate of 10%; if the term of shareholding exceeds one year, temporarily, the
dividend and bonus incomes are exempted from individual income taxes. When
dividends and bonus incomes are distributed by a listed company, such company,
temporarily, shall not withhold or pay any individual income taxes on behalf of
the individuals whose term of shareholding is within one year (inclusive); instead,
the taxable incomes shall be calculated by a securities registration and settlement
company based on the term of shareholding when the individual transfers those
shares and the Company shall withhold and pay the taxes through the securities
registration and settlement company. For dividend and bonus incomes obtained
by securities investment funds from listed companies, the individual income taxes
thereof are calculated and levied pursuant to the provisions in the document of Cai
Shui [2012] No. 85.
For QFII, according to the provisions in the Notice on Issues Regarding
Withholding and Payment of Corporate Income Taxes when PRC Resident
Enterprises Distribute Dividends, Bonuses and Interests to the QFII (Guo Shui
Han [2009] No. 47) (
《關於中國居民企業向
QFII
支付股息、紅利、利息代扣
代繳企業所得稅有關問題的通知》
(
國稅函
[2009] 47
號
)) issued by the State
Administration of Taxation, the listed company withholds and pays corporate
income taxes at a uniform tax rate of 10%. If the dividend and bonus incomes
obtained by QFII shareholders are entitled to the treatment as stipulated in
tax treaties (arrangements), application for tax refund can be submitted to the
115
governing tax authority after the acquisition of such dividends and bonuses
according to regulations.
According to the provisions in the Notice on Tax Policy Regarding Shanghai
Hong Kong Stock Connect Pilot Programs (Cai Shui [2014] No. 81) (
《關於滬港股
票市場交易互聯互通機制試點有關稅收政策的通知》
(
財稅
[2014] 81
號
)) issued
by the Ministry of Finance, State Administration of Taxation and the CSRC, for
the dividend and bonus incomes obtained by investors (including enterprises and
individuals) on Hong Kong market from investing in A Shares listed on Shanghai
Stock Exchange, the implementation of differentiated taxation is suspended before
Hong Kong Securities Clearing Company Limited meets the conditions to provide
CSDC with the investors’ identifications, terms of shareholding and other specific
data. The listed company withholds and pays the income taxes at the tax rate
of 10%, which should be duly declared to the governing taxation authority. For
Hong Kong investors who are tax residents of foreign countries that have entered
a tax treaty with the PRC specifying an income tax rate for dividend and bonus
incomes below 10%, the enterprises or individuals can, by themselves or entrust a
withholding agent to apply to the governing tax authorities of the listed company
for the treatment as stipulated in such tax treaties. The governing tax authorities
should refund the taxes according to the discrepancy between the levied taxes
and taxes payable based on the rate specified in the tax treaty after verifying and
approving the application.
For the qualified investors who invest in the GDR issued by the Company on
London Stock Exchange and comply with the relevant domestic and foreign
regulatory rules (GDR Investors), according to the Corporate Income Tax Law of
the PRC (
《中華人民共和國企業所得稅法》
) and other relevant tax regulations,
the Company shall withhold and pay income taxes at a tax rate of 10%. Citibank
and National Association, as the nominal holders of domestic basic A Shares
corresponding to GDR, receive the cash dividends distributed by the Company.
If the dividend and bonus incomes obtained by GDR Investors are entitled to the
treatment as stipulated in relevant tax treaties (arrangements), applications can be
submitted to the governing tax authority according to regulations.
For other institutional investors, the taxes on their dividends and bonus incomes
shall be paid on their own.
2.
Shareholders of H Shares
According to the provisions in the Notice by the State Administration of Taxation
on Issues Regarding the Administration of Individual Income Tax Collection
after the Annulment of Document Guo Shui Fa [1993] No. 045 (Guo Shui Han
[2011] No. 348) (
《國家稅務總局關於國稅發
[1993] 045
號文件廢止後有關個
人所得稅徵管問題的通知》
(
國稅函
[2011] 348
號
)), for the dividend and bonus
incomes acquired by individual shareholders as overseas residents from the
issuance of shares in Hong Kong by domestic non-foreign investment enterprises,
the withholding agent shall legally withhold and pay the individual income
taxes according to item “interest, dividend and bonus income”. For the issuance
of shares in Hong Kong by domestic non-foreign investment enterprises, the
individual shareholders as overseas residents can enjoy relevant tax preferences
according to the provisions in the tax treaty signed by the country to which
116
the resident identity belongs and the PRC and in the tax arrangements between
Mainland China and Hong Kong (Macao). According to relevant tax treaties
and tax arrangements, the tax rates for dividends are normally 10%. To simplify
administration of tax collection, when the domestic non-foreign investment
enterprises issuing shares in Hong Kong distribute dividends and bonuses, the
individual income taxes are generally withheld at the tax rate of 10% without
application. If the dividend tax rate is not 10%, individual income taxes shall
be withheld as per the following provisions: (1) for residents subject to tax rate
below 10% pursuant to relevant treaties, the withholding agent can apply related
treatment under such treaties on behalf of the residents and the governing tax
authority will refund the additional tax payments after approving the application;
(2) for residents subject to tax rate over 10% but lower than 20% pursuant to
relevant treaties, when the withholding agent distributes dividend and bonus, the
individual income tax shall be withheld and paid at the actual tax rate specified in
the treaties and application for approval is not necessary; (3) for residents from the
country which did not enter into any tax treaty with the PRC and other situations,
when the withholding agent distributes dividend and bonus, the individual income
tax shall be withheld and paid at the tax rate of 20%.
According to the provisions in the Notice on Issues regarding Withholding of
Enterprise Income Taxes when PRC Resident Enterprises Distribute Dividends
to Overseas Non-resident Enterprise shareholders of H Shares (Guo Shui Han
[2008] No. 897) (
《關於中國居民企業向境外
H
股非居民企業股東派發股息代
扣代繳企業所得稅有關問題的通知》
(
國稅函
[2008] 897
號
)) issued by the State
Administration of Taxation, when Chinese resident enterprises distribute annual
dividends to overseas non-resident enterprise shareholders of H Shares for 2008
and subsequent years, the corporate income tax shall be withheld and paid at the
uniform tax rate of 10%.
According to the provisions in the Notice on Tax Policy Regarding Shanghai
Hong Kong Stock Connect Pilot Programs (Cai Shui [2014] No. 81) (
《關於滬
港股票市場交易互聯互通機制試點有關稅收政策的通知》
(
財稅
[2014] 81
號
))
and the Notice on Tax Policy Regarding Shenzhen-Hong Kong Stock Connect
Pilot Programs (Cai Shui [2016] No. 127) (
《關於深港股票市場交易互聯互通
機制試點有關稅收政策的通知》
(
財稅
[2016] 127
號
)) issued by the Ministry
of Finance, State Administration of Taxation and the CSRC, for dividends and
bonuses acquired by Mainland individual investors by investing in listed H Shares
on the Hong Kong Stock Exchange via Shanghai-Hong Kong Stock Connect or
Shenzhen-Hong Kong Stock Connect, such H Share companies shall withhold
the individual income tax at a tax rate of 20%. For dividends and bonuses
acquired from Mainland securities investment funds by investing in listed shares
on the Hong Kong Stock Exchange via Shanghai-Hong Kong Stock Connect or
Shenzhen-Hong Kong Stock Connect, the individual income tax shall be levied as
per above regulations. For dividends and bonuses acquired by Mainland enterprise
investors by investing in listed shares on the Hong Kong Stock Exchange via
Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect,
such H Share companies shall not withhold any income taxes on the dividends and
bonuses, and such income tax shall be declared and paid by the enterprises on their
own. Meanwhile, for the dividends and bonuses acquired by Mainland resident
enterprises for continuous holding of H Shares for 12 months, the corporate
income tax shall be exempted according to laws.
117
According to the current practices of Inland Revenue Department of Hong Kong,
no tax shall be levied for dividends distributed by the Company in Hong Kong.
The shareholders of the Company shall pay relevant taxes and/or be entitled to tax
reliefs according to the above provisions.
(XVII)
Environmental policies and performance of the Company
For the environmental policies and performance of the Company, please refer to
“Environmental and Social Responsibilities” in this report.
(XVIII)
Compliance with relevant laws and regulations
As a public company listed at home and abroad, the Company abides, in a strict manner,
by the requirements of the laws, regulations and normative documents of domestic and
foreign places where the Company is listed including the Company Law, Securities
Law, Regulation on the Supervision and Administration of Securities Companies, Rules
for Governance of Securities Companies, Code of Corporate Governance for Listed
Companies in China, Corporate Governance Code in Appendix C1 of Hong Kong
Listing Rules and the Articles of Association. The Company established and perfected
its rules and regulations to standardize the operation of the Company, and devoted
itself to maintaining and improving its sound market image. Please refer to “Suspected
Violations of Laws and Regulations by, Punishment on and Rectification of the
Company and its Directors, Supervisors, Senior Management, Controlling Shareholders
and de facto Controllers” in the section headed “Major Events” in this report for the
punishment and public denouncement received by the Company during the Reporting
Period.
(XIX)
Reserves and distributable reserves
For changes in reserves and distributable reserves, please refer to the “Consolidated
Statement of Changes in Equity” and “55. Share capital, reserves and retained profits”
to the “Notes to the Consolidated Financial Statements” under the “Independent
Auditor’s Report and Consolidated Financial Statements” of this report.
(XX) Property and equipment and investment properties
For changes in properties and equipment and investment properties of the Group during
the year, please refer to “20. Property and equipment” and “21. Investment properties”
to the “Notes to the Consolidated Financial Statements” under the “Independent
Auditor’s Report and Consolidated Financial Statements” of this report. As at
December 31, 2024, the Group did not own any investment properties or properties for
development and/or for sale with one or more ratio (as defined in the Rule 14.04(9) of
the Hong Kong Listing Rules) over 5%.
(XXI)
Management contract
No contracts concerning the management and administration of the whole or any
substantial part of the business of the Company were entered into or existed during the
year ended December 31, 2024.
118
(XXII)
Donations
The Company actively performed its social responsibilities in 2024 by investing
RMB28,513,900 (2023: RMB44,566,500) in public activities including public service
advertising and charitable contribution.
(XXIII)
Five-year financial highlight
For the highlight of operating results, assets and liabilities of the Group in the past five
financial years, please refer to “Key Accounting Data and Financial Indicators for the
Past Five Years” under “Key Accounting Data and Financial Indicators” in the section
headed “Company Profile and Key Financial Indicators” in this report. This summary
does not constitute a part of the audited consolidated financial statements.
(XXIV)
Auditors
1.
Upon approval by the Company’s 2021 Annual General Meeting held on June
22, 2022, the Company employed Deloitte Touche Tohmatsu Certified Public
Accountants LLP as the audit service institute of the Company and its holding
subsidiaries for the 2022 annual financial statements and internal control to
issue A Share audit report, internal control audit report and GDR audit report;
and employed Deloitte Touche Tohmatsu as the audit service institute for the
Company’s H Shares to issue H Share audit report. The audit fee amounted to
RMB4.20 million (of which the internal control audit fee was RMB0.35 million).
In 2022, Deloitte Touche Tohmatsu Certified Public Accountants LLP issued a
standard unqualified opinion audit report on the annual financial report prepared
by the Company in accordance with the China Accounting Standards for Business
Enterprises. Certified public accountants Hu Xiaojun and Han Jian signed the
report; Deloitte Touche Tohmatsu issued a standard unqualified opinion audit
report on the annual financial report prepared by the Company in accordance with
the International Financial Reporting Standards. Certified public accountant Eric
Tong signed the report.
2.
Upon approval by the Company’s 2022 Annual General Meeting held on June
30, 2023, the Company employed Deloitte Touche Tohmatsu Certified Public
Accountants LLP as the audit service institute of the Company and its holding
subsidiaries for the 2023 annual financial statements and internal control to
issue A Share audit report, internal control audit report and GDR audit report;
and employed Deloitte Touche Tohmatsu as the audit service institute for the
Company’s H Shares to issue H Share audit report. The audit service fee was
capped at RMB4.60 million (of which the internal control audit fee was RMB0.40
million). In 2023, Deloitte Touche Tohmatsu Certified Public Accountants LLP
issued a standard unqualified opinion audit report on the annual financial report
prepared by the Company in accordance with the China Accounting Standards
for Business Enterprises. Certified public accountants Hu Xiaojun and Han Jian
signed the report; Deloitte Touche Tohmatsu issued a standard unqualified opinion
audit report on the annual financial report prepared by the Company in accordance
with the International Financial Reporting Standards. Certified public accountant
Eric Tong signed the report.
119
3.
Upon approval by the Company’s 2023 Annual General Meeting held on June
20, 2024, the Company employed Deloitte Touche Tohmatsu Certified Public
Accountants LLP as the audit service institute of the Company and its holding
subsidiaries for the 2024 annual financial statements and internal control to
issue A Share audit report, internal control audit report and GDR audit report;
and employed Deloitte Touche Tohmatsu as the audit service institute for the
Company’s H Shares to issue H Share audit report. The audit service fee was
capped at RMB4.60 million (of which the internal control audit fee was RMB0.40
million). In 2024, Deloitte Touche Tohmatsu Certified Public Accountants LLP
issued a standard unqualified opinion audit report on the annual financial report
prepared by the Company in accordance with the China Accounting Standards
for Business Enterprises. Certified public accountants Hu Xiaojun and Han Jian
signed the report; Deloitte Touche Tohmatsu issued a standard unqualified opinion
audit report on the annual financial report prepared by the Company in accordance
with the International Financial Reporting Standards. Certified public accountant
Chu Wai Chung signed the report.
4.
Upon approval by the Company’s fifteenth meeting of the sixth session of the
Board of Directors held on March 28, 2025, the Company proposed to employ
Deloitte Touche Tohmatsu Certified Public Accountants LLP as the audit service
institute of the Company and its holding subsidiaries for the 2025 annual financial
statements and internal control to issue A Share audit report, internal control audit
report and GDR audit report; and employ Deloitte Touche Tohmatsu as the audit
service institute for the Company’s H Shares to issue H Share audit report. The
audit service fee was capped at RMB4.98 million (of which the internal control
audit fee was RMB0.40 million). This issue is yet to be approved at the 2024
Annual General Meeting of the Company.
There have been changes in the auditor of the Company in the past three years.
According to the Administrative Measures for Selection and Appointment of
Accounting Firms by State-owned Financial Enterprises (Cai Jin [2020] No. 6)
(
《國有金融企業選聘會計師事務所管理辦法》
(
財金
[2020] 6
號
)) issued by the
Ministry of Finance, the service term of the accounting firm previously appointed
by the Company expired after the completion of the audit on the 2021 Annual
Report. On June 22, 2022, the Resolution on the Change of the Accounting
Firm of the Company for 2022 was considered and approved at the 2021 Annual
General Meeting, which approved the Company to engage Deloitte Touche
Tohmatsu Certified Public Accountants LLP as the audit service institute for
the 2022 annual accounting statements and internal control audit services of the
Company and its controlled subsidiaries, and issued the A Share Audit Report, the
Internal Control Audit Report and the GDR Audit Report, and appoint Deloitte
Touche Tohmatsu as the H Share audit service institute of the Company and issue
the H Share Audit Report.
(XXV)
Review of Annual Results
This annual financial report has been audited. The Audit Committee under the Board of
Directors has reviewed the Company’s audited annual financial statement and annual
report as of December 31, 2024, and did not raise any objections to the accounting
policy and convention adopted by the Company.
120
(XXVI)
Publication of the Annual Report
This annual report will be released on the Company’s website (www.htsc.com.cn) and
the HKEXnews website (www.hkexnews.hk).
The 2024 annual report of the Company which contains all the information required
by the Hong Kong Listing Rules will be published on the HKEXnews website
(www.hkexnews.hk) and the Company’s website (www.htsc.com.cn), and will be
dispatched to the shareholders of H Shares of the Company by the means of receipt of
communications they selected.
By order of the Board
Zhang Wei
Chairman
March 28, 2025
121
CORPORATE GOVERNANCE
I.
DESCRIPTION OF CORPORATE GOVERNANCE
As a public company listed in both domestic and overseas, the Company has been operating
business in a standard manner and in strict compliance with the requirements set forth in
the laws, regulations and normative documents of the PRC and the overseas jurisdiction
where the shares of the Company are listed, and has made continuous efforts to maintain
and enhance the good image of the Company in the market. The Company keeps improving
its corporate governance structure, compliance risk control and internal control system
according to the requirements under the Company Law, the Securities Law, the Regulations
on Supervision and Management of Securities Companies, the Rules for Governance of
Securities Companies, the Rules for Corporate Governance of Listed Companies, the
Corporate Governance Code as set out in Appendix C1 to the Hong Kong Listing Rules
and other relevant laws and regulations as well as the Articles of Association, in order to
establish a modern corporate system, and shape a corporate governance structure where
checks and balances among the general meeting, the Board, the Supervisory Committee and
the operation management are maintained, with each of them being separated from the other
and performing its own functions and responsibilities corresponding to its position within the
specified terms of reference, thereby ensuring all the operational activities of the Company
are carried out smoothly and in accordance with relevant laws and regulations.
(I)
Corporate Governance
During the Reporting Period, the Company conducted its operations and management
in a standard and orderly manner. Various rules and regulations have been formulated
and continuously refined in strict compliance with the requirements of laws, regulations
and normative documents to regulate the Company’s operations. During the Reporting
Period, the Company amended and improved the Articles of Association, which
was considered and approved by the general meeting of the Company, in light of
cancellation of the remaining repurchased A Shares by the Company and repurchase
and cancellation of part of the restricted A Shares under the equity incentive scheme
of the Company. Meanwhile, in order to strengthen the management of inside
information, maintain the confidentiality of inside information, ensure fair information
disclosure and protect the legitimate rights and interests of investors, the Company
amended and improved the System regarding Insider Registration, Management and
Confidentiality (
《內幕信息知情人登記管理及保密制度》
) in compliance with the
Regulatory Guidelines for Listed Companies No. 5 – Registration and Management
System for Insider Information of Listed Companies (
《上市公司監管指引第
5
號－上
市公司內幕信息知情人登記管理制度》
), the Guidelines No. 2 of the Shanghai Stock
Exchange for Self-Regulation of Listed Companies – Information Disclosure Affairs
Management (
《上海證券交易所上市公司自律監管指引第
2
號 － 信息披露事務管理》
)
as well as relevant laws, regulations, departmental rules, normative documents and in
light of the actual situation of the Company; and in order to strengthen the management
of the Shares of the Company held by Directors, Supervisors and senior management
of the Company and the changes thereof, the Company amended and improved the
Administrative System regarding the Shares of the Company Held by Directors,
Supervisors and Senior Management in compliance with the Interim Measures for the
Administration of Shareholding Reduction by Shareholders of Listed Companies (
《上市
公司股東減持股份管理暫行辦法》
), the Rules for the Management of Shares Held by
Directors, Supervisors and Senior Management of Listed Companies and the Changes
thereof (
《上市公司董事、監事和高級管理人員所持本公司股份及其變動管理規則》
)
issued by the CSRC and the Guidelines No. 15 of the Shanghai Stock Exchange for
122
Self-Regulation of Listed Companies – Shareholding Reduction by Shareholders and
Directors, Supervisors and Senior Management (
《上海證券交易所上市公司自律監管指
引第
15
號 － 股東及董事、監事、高級管理人員減持股份》
) as well as relevant laws,
regulations, departmental rules, normative documents and in light of the actual situation
of the Company. These amendments to the rules have been considered and approved
by the Board of the Company. In addition, during the Reporting Period, as considered
and approved by the Board, the Supervisory Committee and the general meeting of
the Company, the Company made adjustments to the composition of the sixth session
of the Board, the Supervisory Committee and the special committees thereof to fully
leverage on professional strengths and improve decision efficiency and decision level.
Through the establishment and improvement as well as the full implementation of the
above systems, the Company’s governance structure and level have been continuously
standardized and improved.
The convening, holding and voting procedures of the general meeting, the Board and
the Supervisory Committee of the Company were standard, legal and valid, and the
Company disclosed truthful and accurate information in a complete, timely and fair
manner. The Company carried out investor relationship management in a standard and
professional manner, and carried out inside information management and registration
of insiders in strict compliance with the requirements of the System regarding Insider
Registration and Management and Confidentiality of the Company and other relevant
rules. The Company adhered to the principle of scientificity, standardization and
transparency when practicing corporate governance. During the Reporting Period,
the Company was rated with the highest rating of A in the 2023-2024 Information
Disclosure Evaluation on Listed Companies organized by the SSE; was honored as the
Best Practice Case in the 2024 Best Practice Case Collections for Board of Directors
of Public Companies organized by China Association for Public Companies, and was
honored as the Best Practice Case in the 2024 Best Practice Case Collections for Board
Office of Public Companies organized by China Association for Public Companies. At
the same time, the secretary of the Board of the Company was rated as 5A in the 2024
Performance Evaluation of the Secretary of the Board of Directors of Listed Companies
organized by China Association for Public Companies. In addition, with its remarkable
ESG governance practice, in 2024, the annual MSCI ESG rating of the Company rose to
AAA from AA, achieving two consecutive years of advancement to the highest rating in
the global investment banking industry.
1.
Shareholders and the General Meeting
The shareholders’ general meeting is the organ of the highest authority of the
Company, and the shareholders exercise their rights through the shareholders’
general meeting. The Company convenes and holds shareholders’ general meetings
in strict accordance with the relevant provisions of the Articles of Association
and the Rules of Procedures for General Meetings to ensure the equal status of all
shareholders, in particular the minority shareholders, and enable them to exercise
their rights completely. The largest shareholder and the de facto controller of
the Company exercised their rights in accordance with the laws, regulations
and the Articles of Association, and neither directly or indirectly intervened in
the decisions and operations of the Company beyond the general meeting nor
appropriated any fund of the Company or requested the Company to provide any
external guarantee. The Company was completely independent from its largest
shareholder and de facto controller in terms of staff, assets, finance, organization
and business.
123
2.
Directors and the Board
The election and change of Directors were in strict compliance with the Articles
of Association. The number and composition of the Board conformed to the
requirements of the relevant laws and regulations. The Board has continuously
improved its rules of procedures. All the Board meetings were duly convened
and held, and all voting procedures at the meetings were legal and valid. The
Company has established the Working System for Independent Directors, and all
the independent Directors have independently and objectively worked to protect
the legitimate rights and interests of the Company and its shareholders, and played
a role of check and balance in the decision-making process of the Board. The
Board has the following mechanism in place to ensure independent views and
input from Directors are conveyed to the Board. Meanwhile, the Board reviews the
implementation and effectiveness of this mechanism every year: The Board of the
Company includes 5 independent non-executive Directors, representing more than
1/3 of the Board. Each year, all independent Directors of the Company submit an
annual performance report to the Board and the shareholders’ general meeting for
consideration, and disclose relevant information on their positions in other listed
companies or organizations in the annual report. The Company has established
Special Committees under the Board that are responsible to the Board and
submit the voting results of the meetings to the Board, among which the majority
members of the Audit Committee and the Nomination Committee are independent
Directors who host the posts of chairman. All members of the Remuneration and
Appraisal Committee are independent Directors. The Nomination Committee is
responsible for reviewing the structure, size and composition of the Board each
year, reviewing and making recommendations on the qualifications of Directors
and senior management and reviewing the independence of independent non-
executive Directors and other matters.
The Company ensures that independent Directors have the right to information
equivalent to that of other Directors and are provided with the necessary working
conditions to perform their duties, and for matters that need to be decided by the
Board, the Company shall notify independent Directors in advance pursuant to
statutory limit of time and provide true, accurate and sufficient information at the
same time. If independent Directors consider that the information is insufficient,
they may request the Company to supplement.
All Directors of the Company are able to perform their duties with due diligence
in accordance with the relevant regulations to safeguard the interests of the
Company and all shareholders.
124
There is no financial, business, family or other significant/related relationship
between the Directors, Supervisors and senior management of the Company.
The Company believes that the increasing diversity of the Board is one of the
key factors that help support its strategic objectives and maintain sustainable
development. Therefore, the Company has, when determining the composition of
the Board, adopted the following measures to maintain or enhance its balance and
diversity:
(1)
consider the diversity of Board members in several aspects, including but
not limited to gender, age, cultural and educational background, professional
experience, skills, knowledge and popularity in service. The determination
of the members should be based on the value of the candidates and the
contribution that they could make to the Board. All nominations of the
Board should be in the principle of “merit-based”. When the candidates are
selected, the benefits from the diversity of Board members should be taken
into full consideration according to their objective conditions.
(2)
The Nomination Committee will report annually on the diversified
composition of the Board in the annual report, inspect the implementation of
the abovementioned policy on diversification of Board members and review
such policy every year so as to ensure its effectiveness.
In 2022, the Company set up the sixth session of the Board of Directors, with
members including strategic Shareholder representatives introduced through the
non-public issuance of A Shares, forming a Board with diversified composition
and complementary advantages.
As of the end of the Reporting Period, the composition of the Board of the
Company is as follows:
By age group
Aged 50 and below: 4 persons; aged 51-55: 4 persons; aged 56-60: 4 persons;
aged over 60: 1 person
By category of Directors
Executive Directors: 3 persons; non-executive Directors: 5 persons; independent
non-executive Directors: 5 persons
By gender
Female Director: 1 person; male Directors: 12 persons
125
Professional background
Finance, economics, accounting, laws, business administration, economic
management, enterprise management, industrial economics, electronic
communication, social sciences, etc.
The Board considers that the current composition of the Board during the
Reporting Period is diversified regarding skills, gender, experience and knowledge.
However, after the resignation of Ms. Yin Lihong, an executive Director of the
Company, on March 14, 2025, the Company will identify suitable candidate to
serve as the Director pursuant to relevant requirements, in order to re-meet the
requirement under Rule 13.92 of the Hong Kong Listing Rules regarding diversity
of the Board. The nomination policy of the Company can ensure that the Board
will have potential alternate candidates to continue the diversity of the Board.
3.
Supervisors and the Supervisory Committee
The election and change of the Supervisors were in strict compliance with
the Articles of Association. The number and composition of the Supervisory
Committee conformed to the requirements of the relevant laws and regulations.
The Supervisory Committee has continuously improved its rules of procedure.
All the meetings of the Supervisory Committee were duly convened and held,
and all voting procedures at the meetings were legal and valid. The Supervisory
Committee is responsible to the general meeting. Based on the principle of being
responsible to all shareholders, the Supervisory Committee effectively supervised
the legality and compliance of the Company’s finance and the performance
of duties by the Board and the management of the Company. All Supervisors
diligently performed their duties, attended all meetings of the Supervisory
Committee and sat in the meetings of the Board as non-voting delegates, made
reports to the general meeting and submitted its work report.
4.
Senior Management of the Company
The election and change of the senior management were in strict compliance with
the Articles of Association. The procedures for appointment of senior management
complied with the Company Law and the Articles of Association. The Company
has formulated the Terms of Reference of the CEO and the Executive Committee
and the Terms of Reference of the Secretary to the Board and other rules and
regulations. The senior management of the Company conducted operations
and performed their duties legally and diligently in accordance with the laws,
regulations and authorizations of the Board, in order to maximize shareholders’
benefits and social benefits.
126
5.
Information Disclosure and Transparency of the Company
The Company disclosed information in a truthful, accurate, complete and timely
manner in strict compliance with the requirements of laws, rules and relevant
regulations, and ensured that all shareholders had an equal access to the relevant
information of the Company, thereby ensuring the transparency of the Company.
The Company strengthened the management of inside information, worked to
ensure the confidentiality of inside information, and safeguarded the principle of
fairness in information disclosure in strict compliance with the System regarding
Insider Registration and Management and Confidentiality of the Company. The
Board designated the secretary to the Board to be responsible for the Company’s
information disclosure, and the Office of the Board also assisted the secretary
in information disclosure. Meanwhile, the Company also arranged dedicated
personnel to answer telephone enquiries of investors and questions from
investors via e-mails and the SSE interactive E-platform, actively interacted with
institutional investors during their visits and surveys or telephone interviews,
regularly held results presentation and online briefing on the results, proactively
attended strategy seminars and investment forums held by domestic or overseas
financial institutions and updated in a timely manner information on the “Investor
Relations” column on the Company’s website.
6.
Stakeholders
The Company gave full respects to the shareholders, customers, staff and
other stakeholders and protected their legitimate rights and interests from the
perspective of system building and in each link of business operation, ensured the
development of the Company in a sustainable, harmonious, healthy and standard
way, in order to achieve all-win results for the Company and all stakeholders, thus
maximizing the Company’s profits and social benefits.
During the Reporting Period, according to the requirements of the regulatory
departments, the Company further improved its organizational structure,
institutional building and strengthened management of inside information, and
ensured that the actual status of the corporate governance of the Company
complied with the requirements of the normative documents published by the
CSRC regarding the corporate governance of listed companies. Meanwhile, the
Company strictly complied with all the code provisions as set out in the Corporate
Governance Code, and met most of the recommended best practices in the
Corporate Governance Code.
(II)
Formulation and Implementation of Insider Registration and Management System
The Company formulated the System regarding Insider Registration and Management
and Confidentiality in April 2010 in accordance with the requirements of relevant laws
and regulations, normative documents and the Articles of Association and in light of the
actual situation of the Company, which was considered and approved at the seventeenth
meeting of the first session of the Board, in order to strengthen the management of
inside information, maintain the confidentiality of inside information, ensure fair
information disclosure and protect the legitimate rights and interests of investors.
127
In December 2011, according to the Provisions on the Establishment of an Insider
Registration and Management System by Listed Companies (CSRC Announcement
[2011] No. 30) (
《關於上市公司建立內幕信息知情人登記管理制度的規定》
(
證監會
公告
[2011]30
號
)) by the CSRC, the Circular on Filing Records of Insiders by Listed
Companies (Shang Zheng Gong Han [2011] No. 1501) (
《關於做好上市公司內幕信息知
情人檔案報送工作的通知》
(
上證公函
[2011]1501
號
)) by the Shanghai Stock Exchange
and other relevant requirements issued by regulators, the Company made amendments
to the System Regarding Insider Registration and Management and Confidentiality,
which were considered and approved at the seventh meeting of the second session of the
Board.
In March 2015, in order to meet the relevant regulatory requirements regarding the
listing of the H Shares of the Company, the Company made amendments to the System
Regarding Insider Registration and Management and Confidentiality, which were
considered and approved at the sixteenth meeting of the third session of the Board.
In March 2019, for consistency with the Articles of Association, the Company made
amendments to the System regarding Insider Registration and Management and
Confidentiality, which was considered and approved at the twentieth meeting of the
fourth session of the Board.
In August 2020, according to the revised Securities Law, the Guidelines on Insiders
Reporting by Listed Companies of the SSE as well as relevant laws, regulations and
normative documents, the Company made amendments to the System regarding Insider
Registration and Management and Confidentiality, which was considered and approved
at the seventh meeting of the fifth session of the Board.
In March 2024, pursuant to the Regulatory Guidelines for Listed Companies No. 5 –
Registration and Management System for Insider Information of Listed Companies,
the Guidelines No. 2 of the Shanghai Stock Exchange for Self-Regulation of Listed
Companies – Information Disclosure Affairs Management as well as relevant laws,
regulations, departmental rules, normative documents, the Company amended the
System regarding Insider Registration, Management and Confidentiality, which was
considered and approved at the seventh meeting of the sixth session of the Board of the
Company.
During the Reporting Period, the Company made more efforts to maintain the
confidentiality of inside information, performed its obligation of insider registration,
management and confidentiality diligently, kept records of the names of insiders
who had accessed to the inside information at the stage of negotiation, planning,
demonstration and consultation and contracting as well as in the processes of reporting,
delivery, preparation, auditing, resolution and disclosing before its final disclosure in
strict compliance with the requirements of System regarding Insider Registration and
Management and Confidentiality, and kept records of information relating to insiders
and memos of progress of major events, in order to effectively prevent insider dealing
and properly carry out information disclosure.
During the Reporting Period, the Company organized internal investigation into the
dealing of shares and derivatives of the Company by insiders, and found that none
of the holders of inside information had made use of inside information in share
transactions before any significant-price-sensitive-nature information disclosure that
may affect the share price of the Company, and the Company has not received any
punishment or administrative measure imposed by regulatory departments due to the
possible involvement in insider dealing.
128
(III) Corporate Governance Policies and the Board
’
s Responsibilities for Corporate
Governance
The Company has been in strict compliance with the Hong Kong Listing Rules, and
followed all the principles in the Corporate Governance Code to be its own corporate
governance policies. In respect of the corporate governance function, the terms of
reference of the Board shall at least include:
(1)
to formulate and review the corporate governance policies and practices of the
Company;
(2)
to review and monitor the training and continuous professional development of the
Directors and the senior management;
(3)
to review and monitor the Company’s policies and practices on compliance with
laws and regulatory requirements;
(4)
to formulate, review and monitor the code of conduct and compliance manual (if
any) applicable to monitor employees and Directors;
(5)
to review the Company’s compliance with the Corporate Governance Code and
disclosure in the Corporate Governance Report.
(IV) Securities Transactions by Directors, Supervisors and Employees
During the Reporting Period, the Company adopted the Model Code as set out in
Appendix C3 to the Hong Kong Listing Rules as the code of conduct for securities
transactions of the Company by all Directors and Supervisors. According to the
domestic regulatory requirements, the Company convened the thirteenth meeting
of the third session of the Board on November 25, 2014 to consider and approve
the Administrative System regarding the Shares of the Company Held by Directors,
Supervisors and Senior Management (the “Administrative System”) in order to regulate
the holding and dealing in the shares of the Company by Directors, Supervisors
and senior management. On March 6, 2015, the Company made amendments to the
Administrative System in order to meet the relevant regulatory requirements regarding
the listing of H Shares of the Company, which were considered and approved at the
sixteenth meeting of the third session of the Board. On October 28, 2022, the Company
made amendments to the Administrative System, which were considered and approved
at the twenty-seventh meeting of the fifth session of the Board of the Company. On
December 20, 2024, the Company made amendments to the Administrative System in
order to strengthen the management of the Shares of the Company held by Directors,
Supervisors and senior management of the Company and the changes thereof, which
were considered and approved at the fourteenth meeting of the sixth session of the
Board of the Company. The compulsory provisions contained in the Administrative
System are stricter than those under the Model Code. Having made all enquiries
with Directors, Supervisors and senior management, the Company confirmed that all
Directors, Supervisors and senior management had strictly complied with the relevant
requirements under the Administrative System and Model Code during the Reporting
Period. The Board of the Company will, on a regular or irregular basis, carry out
inspection on corporate governance and operation of the Company, in order to ensure
the relevant provisions under the Hong Kong Listing Rules are well observed and
to protect the interests of the shareholders. Please refer to “Changes in shareholding
structure and remuneration of current and resigned Directors, Supervisors and
senior management during the Reporting Period” under “Directors, Supervisors and
Senior Management” under “Corporate Governance” in this report for details of the
shareholding of the Directors, Supervisors and senior management of the Company.
129
II.
SPECIFIC MEASURES TAKEN BY THE CONTROLLING SHAREHOLDERS
AND DE FACTO CONTROLLERS OF THE COMPANY TO ENSURE THE
INDEPENDENCE OF THE COMPANY IN TERMS OF ASSETS, PERSONNEL,
FINANCE, ORGANIZATION AND BUSINESS, AND THE SOLUTIONS, WORK
PROGRESS AND FOLLOW-UP WORK PLANS THAT INFLUENCE THE
INDEPENDENCE OF THE COMPANY
The shareholding structure of the Company is relatively decentralized without controlling
shareholders. The de facto controller of the Company is Jiangsu SASAC. Since its inception,
the Company has been operating in strict compliance with relevant laws and regulations
including the Company Law and the Securities Law as well as the requirements of the
Articles of Association. The Company is completely separated from its shareholders in
respect of business, staff, assets, organization and finance, owns a complete business system
and is capable of operating independently in the market.
1.
Information about the independence of business
In accordance with the requirements of the Company Law and the Articles of
Association, the Company conducts business on its own pursuant to the law within the
operating scope approved by the CSRC, and has obtained various business materials
required for securities business operation with an independent and complete business
system and the ability of self-operation. Its business operation is not controlled or
affected by its shareholders or related parties. The Company can compete in the market
independently. Shareholders and related parties of the Company did not breach the
Company’s working procedures or intervene in the Company’s internal management or
the making of its operational decisions.
2.
Information about the independence of the staff
The Company set up a dedicated human resources department, and established
independent and complete systems for labor employment, personnel management, salary
management and social security. The Directors, Supervisors, and senior management
of the Company were selected and employed in compliance with relevant requirements
of the Company Law, the Securities Law, the Measures for the Supervision and
Administration of Directors, Supervisors, Senior Management Officers and Practitioners
of Securities Fund Operating Institutions and the Articles of Association. The current
Directors, Supervisors and senior management of the Company meet the corresponding
qualifications. The senior management of the Company held no positions in its largest
shareholder and de facto controller and other enterprises under its control. The Company
adopts an appointment system for the senior management, a labor contract system for all
staff, and enters into Labor Contract with all the staff in accordance with the law. The
Company owns independent rights for labor employment and its staff are independent
from the shareholders and enterprises under their control without any interference from
the shareholders.
130
3.
Information about the integrity of the assets
The Company owns main business qualifications, land, real estate, vehicles and other
operating equipment required for business operation. The above assets are subject to
no mortgage, pledge or other guarantees, and the Company is the legal owner of these
assets. The assets of the Company are independent from its largest shareholder and
other shareholders. As of the end of the Reporting Period, the Company provided no
guarantees for the debts of any of its shareholders and their subsidiaries by using its
assets or reputation as the collateral. The Company had full control and use right over
its assets, and there had been no circumstance under which the interests of the Company
were damaged due to the largest shareholder’s occupation of any of its assets and funds.
4.
Information about organizational independence
In strict compliance with the requirements of the Company Law and the Articles of
Association, the Company has set up a sound corporate governance structure, under
which the general meeting, the Board of Directors, the Supervisory Committee, the
senior management and relevant operating management departments have been formed.
The general meeting, the Board of Directors, the Supervisory Committee and the
senior management are in good operation and exercise their respective functions and
powers pursuant to the law. The Company owns an independent and complete system
for securities business operation and management, and conducts business on its own.
The organizations are set up and run in compliance with the relevant requirements of
the CSRC. The existing offices and premises of the Company are totally separate from
its shareholders without the circumstances of sharing organizations with them or their
direct intervention in the Company’s business activities.
5.
Information about financial independence
As required by the Accounting Standards for Business Enterprises and the Financial
Systems of Securities Firms, the Company has established an independent financial
accounting and management system, set up an independent accounting department, and
employed independent financial accountants. The chief financial officer and financial
personnel of the Company held no positions in its shareholders. The Company has
opened an independent bank account, applied for an independent tax registration and
paid taxes in accordance with laws and regulations. The Company shared no accounts
and taxes with its shareholders and related parties.
As of the end of the Reporting Period, the Company provided no guarantees for its
shareholders and other related parties. During the Reporting Period, the Company
experienced no peer competition and related-party transactions resulted from
shareholding reform, features of the industry and national policies or mergers and
acquisitions.
131
CONTROLLING SHAREHOLDERS, DE FACTO CONTROLLERS AND OTHER
UNITS UNDER THEIR CONTROL ENGAGED IN SAME OR SIMILAR BUSINESSES
AS THE COMPANY AND IMPACTS OF HORIZONTAL COMPETITIONS OR
SIGNIFICANT CHANGES IN HORIZONTAL COMPETITIONS ON THE COMPANY,
SOLUTIONS ADOPTED, SOLVING PROGRESS AND SUBSEQUENT SOLUTIONS
In July 2010 and with the approval of the People’s Government of Jiangsu Province, Jiangsu
SASAC decided to transfer the state-owned equities in Jiangsu Sainty International Group
Limited to Guoxin Group, the largest shareholder of the Company. Guoxin Group directly
and indirectly held 78.5% equities of Jintai Futures Co., Ltd., and became the controlling
shareholder of Jintai Futures Co., Ltd. Jintai Futures Co., Ltd. is principally engaged in
commodities futures brokerage, financial futures brokerage, futures investment consultancy
and asset management, which has horizontal competition with Huatai Futures, a subsidiary by
the Company.
To avoid the abovementioned horizontal competition, on June 10, 2014, the Company
organized the convening of the sixth meeting of the third session of the Board and the fourth
meeting of the third session of the Supervisory Committee, which considered and approved
the Resolution on Avoiding Horizontal Competition in Futures Businesses Between Jiangsu
Guoxin and Huatai Securities and submitted to the 2014 second extraordinary general meeting
convened on June 26, 2014 for consideration and approval. Meanwhile, the independent
Directors of the Company expressed independent opinions on the resolution. They believed
that such horizontal competition has no significant effect on the operation and development
of Huatai Securities and the interests of minority shareholders and the resolution is in line
with relevant regulations of the CSRC and beneficial to the legitimate interests of investors,
small and medium investors in particular, and meets the requirements of Huatai Securities on
maximizing shareholders’ interests.
On June 27, 2014, Guoxin Group re-signed the Letter of Undertaking on Waiving Horizontal
Competition and Conflict of Interests based on relevant regulations and the requirements
of the resolutions at the 2014 second extraordinary general meeting of the Company. For
the details of the announcement on the change of such undertaking, please refer to the
announcement (Lin No. 2014-047) on the performance and change of undertaking by the
Company’s shareholder dated June 28, 2014.
132
III.
BRIEF INTRODUCTIONS TO THE GENERAL MEETINGS
Meeting
Convening
date
Resolutions
Enquiry index of the websites
designated for publication of
the resolutions
Date of
disclosure
of the
publication of
the resolutions
Status
2023 Annual
General
Meeting
June 20, 2024
1.
To consider the 2023 Work Report of the Board
of the Company;
2.
To consider the 2023 Work Report of the
Supervisory Committee of the Company;
3.
To consider the 2023 Final Financial Report of
the Company;
4.
To consider the Resolution on the 2023 Annual
Report of the Company;
5.
To consider the Resolution on the 2023 Profit
Distribution Plan of the Company;
6.
To consider the Resolution on Proposal to the
General Meeting to Authorize the Board to
Decide on the Interim Profit Distribution for
2024;
7.
To consider the Resolution on the Estimated
Ordinary Transactions with Related Parties of
the Company for 2024;
8.
To consider the Resolution on the Estimated
Investment Amount for the Proprietary Business
of the Company for 2024;
9.
To consider the Resolution on the Re-
appointment of the Accounting Firms of the
Company for 2024 ;
10. To consider the Report on Performance of Duties
of the Independent Non-executive Directors of
the Company for 2023;
11. To consider the Resolution on the Election
of Mr. Lo Kin Wing Terry as an Independent
Non-executive Director of the Sixth Session of
the Board of the Company;
12. To consider the Resolution on the Election of
Mr. Lv Wei as a Non-employee Representative
Supervisor of the Sixth Session of the
Supervisory Committee of the Company;
13. To consider the Resolution on Repurchase and
Cancellation of Part of the Restricted A Shares
by the Company;
14. Debriefing of the Report on Performance
Assessment and Remuneration of the Directors
of the Company for 2023;
https://www.sse.com.cn
https://www.hkexnews.hk
https://www.londonstockexchange.com
https://www.htsc.com.cn
June 21, 2024
All resolutions
were
considered
and approved.
133
Meeting
Convening
date
Resolutions
Enquiry index of the websites
designated for publication of
the resolutions
Date of
disclosure
of the
publication of
the resolutions
Status
15. Debriefing of the Report on Performance
Assessment and Remuneration of the
Supervisors of the Company for 2023;
16. Debriefing of the Report on Performance
of Duties, Performance Assessment and
Remuneration of the Senior Management of the
Company for 2023.
2024 First
A Share
Class Meeting
June 20, 2024
To consider the Resolution on Repurchase and
Cancellation of Part of the Restricted A Shares by
the Company.
https://www.sse.com.cn
https://www.hkexnews.hk
https://www.londonstockexchange.com
https://www.htsc.com.cn
June 21, 2024
The resolution
was
considered
and approved.
2024 First
H Share Class
Meeting
June 20, 2024
To consider the Resolution on Repurchase and
Cancellation of Part of the Restricted A Shares by
the Company.
https://www.sse.com.cn
https://www.hkexnews.hk
https://www.londonstockexchange.com
https://www.htsc.com.cn
June 21, 2024
The resolution
was
considered
and approved.
Description of general meetings
None of the shareholders of the Company are holders of preference shares with voting rights
recovered. Therefore, none of the extraordinary general meetings was convened by holders
of preference shares with voting rights restored, nor was any general meeting proposed to
be convened, convened or chaired by the holders of preference shares with voting rights
recovered during the Reporting Period.
134
IV.
DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
(I)
Changes in shareholding structure and remuneration of current and resigned
Directors, Supervisors and senior management during the Reporting Period
Currency: RMB
Unit: Ten thousand shares
Name
Position
Gender
Age
Start of
the term
of office
Expiration
of the term
of office
Number of
Shares
held at
the beginning
of the year
Number of
Shares held
at the end
of the year
Changes in
shareholding
during the
year
Reason
for change
Total pre-tax
remuneration
received
from the
Company during
the Reporting
Period
(Ten
Thousand Yuan)
Whether
received
remuneration
from any
connected
party of
the Company
or not
Zhang Wei
Chairman
Male
60
2019-12-16
2025-12-29
–
–
–
–
81.24
No
Zhou Yi
Executive Director
Male
55
2007-12-06
2025-12-29
72.00
72.00
–
–
144.00
No
Employee
representative
Director
2022-12-30
2025-12-29
Chief executive
officer,
Chairman of
the Executive
Committee
2019-10-29
2025-12-29
Ding Feng
Non-executive
Director
Male
56
2018-10-22
2025-12-29
–
–
–
–
–
Yes
Chen Zhongyang
Non-executive
Director
Male
57
2022-06-22
2025-12-29
–
–
–
–
–
Yes
Ke Xiang
Non-executive
Director
Male
50
2021-02-08
2025-12-29
–
–
–
–
–
Yes
Liu Changchun
Non-executive
Director
Male
50
2023-11-24
2025-12-29
–
–
–
–
–
Yes
Zhang Jinxin
Non-executive
Director
Male
53
2022-12-30
2025-12-29
–
–
–
–
–
No
Wang Jianwen
Independent
non-executive
Director
Male
50
2020-06-18
2025-12-29
–
–
–
–
24.00
No
Wang Quansheng
Independent
non-executive
Director
Male
56
2022-06-22
2025-12-29
–
–
–
–
24.00
No
Peng Bing
Independent
non-executive
Director
Male
52
2022-12-30
2025-12-29
–
–
–
–
24.00
No
Wang Bing
Independent
non-executive
Director
Male
46
2022-12-30
2025-12-29
–
–
–
–
24.00
No
Lo Kin Wing Terry
Independent
non-executive
Director
Male
65
2024-06-20
2025-12-29
–
–
–
–
14.00
No
Gu Chengzhong
Employee
representative
Supervisor
Male
59
2019-04-26
2025-12-29
–
–
–
–
109.44
No
Chairman of
the Supervisory
Committee
2021-10-29
2025-12-29
135
Name
Position
Gender
Age
Start of
the term
of office
Expiration
of the term
of office
Number of
Shares
held at
the beginning
of the year
Number of
Shares held
at the end
of the year
Changes in
shareholding
during the
year
Reason
for change
Total pre-tax
remuneration
received
from the
Company during
the Reporting
Period
(Ten
Thousand Yuan)
Whether
received
remuneration
from any
connected
party of
the Company
or not
Lv Wei
Supervisor
Male
36
2024-06-20
2025-12-29
–
–
–
–
–
Yes
Yu Lanying
Supervisor
Female
53
2018-10-22
2025-12-29
–
–
–
–
–
Yes
Zhang Xiaohong
Supervisor
Female
57
2019-12-16
2025-12-29
–
–
–
–
–
Yes
Zhou Hongrong
Supervisor
Female
52
2022-12-30
2025-12-29
–
–
–
–
–
Yes
Wang Ying
Employee
Supervisor
Female
45
2019-12-16
2025-12-29
–
–
–
–
100.32
No
Wang Juan
Employee
Supervisor
Female
46
2021-10-29
2025-12-29
–
–
–
–
65.16
No
Han Zhencong
Member of the
Executive
Committee,
Chief
information
officer
Male
57
2022-04-08
2025-12-29
60.00
60.00
–
–
111.90
No
Sun Hanlin
Member of the
Executive
Committee
Male
59
2019-12-16
2025-12-29
60.00
60.00
–
–
115.20
No
Jiang Jian
Member of the
Executive
Committee
Male
58
2019-12-16
2025-12-29
60.00
60.00
–
–
115.20
No
Zhang Hui
Member of the
Executive
Committee
Male
49
2019-12-16
2025-12-29
60.00
60.00
–
–
111.90
No
Secretary of
the Board
2017-04-26
2025-12-29
Chen Tianxiang
Member of
the Executive
Committee
Male
46
2020-02-18
2025-12-29
60.00
60.00
–
–
115.20
No
Jiao Xiaoning
Chief financial
officer
Female
54
2020-03-05
2025-12-29
50.00
50.00
–
–
145.20
No
Jiao Kai
General legal
counsel
Male
50
2019-12-16
2025-12-29
50.00
50.00
–
–
145.20
No
Chief compliance
officer
2020-02-17
2025-12-29
Wang Chong
Chief risk officer
Male
53
2017-03-16
2025-12-29
50.00
50.00
–
–
204.00
No
Sun Yan
Director of human
resources
Female
53
2022-12-30
2025-12-29
8.00
8.00
–
–
109.92
No
Yin Lihong
Executive Director
(resigned)
Female
54
2022-06-22
2025-03-14
–
–
–
–
73.08
No
Tse Yung Hoi
Independent
non-executive
Director
(resigned)
Male
72
2022-12-30
2024-06-20
–
–
–
–
12.00
No
Li Chongqi
Supervisor
(resigned)
Female
47
2022-12-30
2024-06-20
–
–
–
–
–
No
Total
/
/
/
/
/
530.00
530.00
–
/
1,868.96
/
136
Notes:
1.
On April 29, 2024, the Board of the Company received a written resignation report from Mr.
Tse Yung Hoi, an independent non-executive Director. Mr. Tse Yung Hoi has proposed to resign
from his positions as an independent non-executive Director of the sixth session of the Board of
the Company and as a member of the Audit Committee of the Board due to work reasons. As the
resignation of Mr. Tse Yung Hoi will cause the proportion of independent non-executive Directors
of the Company to the total members of the Board to be less than one-third, Mr. Tse Yung Hoi has
promised to continue to perform his duties until the date when a new independent non-executive
Director is appointed. There is no disagreement between Mr. Tse Yung Hoi and the Board of
the Company, and there is no matter in relation to his resignation that needs to be notified to the
shareholders of the Company. Mr. Tse Yung Hoi has also confirmed that he is not a party involved
in any on-going or pending litigation or dispute against the Company.
2.
According to the relevant requirements of the Rules for Governance of Securities Companies (
《證
券公司治理準則》
) promulgated by the CSRC and the Articles of Association, Shareholder(s)
severally or jointly holding no less than 3% of the outstanding voting shares of the Company
may recommend candidates for Supervisors (non-employee representative Supervisors) to the
Supervisory Committee.
As Guoxin Group, a shareholder holding more than 3% of the outstanding voting shares of the
Company, has nominated Mr. Lv Wei as a candidate for non-employee representative Supervisor of
the sixth session of the Supervisory Committee, Ms. Li Chongqi will cease to be a non-employee
representative Supervisor of the sixth session of the Supervisory Committee due to business
commitments. There is no disagreement between Ms. Li Chongqi and the Supervisory Committee,
and there is no matter in relation to her resignation that needs to be notified to the shareholders of
the Company.
3.
On June 20, 2024, the Resolution on the Election of Mr. Lo Kin Wing Terry as an Independent
Non-executive Director of the Sixth Session of the Board and the Resolution on the Election of
Mr. Lv Wei as a Non-employee Representative Supervisor of the Sixth Session of the Supervisory
Committee were considered and approved at the 2023 Annual General Meeting of the Company.
From June 20, 2024, Mr. Lo Kin Wing Terry performed his duty as an independent non-executive
Director of the sixth session of the Board of the Company succeeding Mr. Tse Yung Hoi for a term
until the end of the term of the current session of the Board; Mr. Lv Wei performed his duty as a
Supervisor of the sixth session of the Supervisory Committee of the Company succeeding Ms. Li
Chongqi for a term until the end of the term of the current session of the Supervisory Committee.
4.
On March 14, 2025, the Board of the Company received a written resignation report from Ms.
Yin Lihong, an executive Director. Ms. Yin Lihong has proposed to resign from her positions as
an executive Director of the sixth session of the Board of the Company and as a member of the
Nomination Committee of the Board due to work adjustment, upon which she no longer holds any
position in the Company. Ms. Yin Lihong has no unfulfilled public commitments or obligations,
there is no disagreement between her and the Board of the Company, and there is no matter
in relation to her resignation that needs to be notified to the shareholders and creditors of the
Company. Ms. Yin Lihong has also confirmed that she is not a party involved in any on-going or
pending litigation or dispute against the Company.
5.
The aforesaid figures on total pre-tax remuneration represent the remuneration accrued and
distributed for 2024 earned by Directors, Supervisors and senior management of the Company
during the period in which they held relevant positions; and it was implemented in accordance with
relevant policies of competent authorities and the Company’s relevant remuneration assessment
system.
6.
The final remuneration distributed for 2024 for Directors, Supervisors and senior management who
received compensation from the Company is still in the process of confirmation, and the rest will
be disclosed separately after confirmation.
7.
The remuneration of the Directors that are the persons in charge of provincial financial enterprises
shall be implemented in accordance with the Interim Measures for the Administration of
Remuneration of Persons in Charge of Provincial Financial Enterprises in Jiangsu Province (
《江蘇
省省管金融企業負責人薪酬管理暫行辦法》
).
137
Name
Primary work experience
Zhang Wei
Master of business administration, senior economist and senior engineer.
He once worked in Jiangsu Electronic Industry Research Institute (
江
蘇省電子工業綜合研究所
) and Jiangsu Electronic Industry Bureau.
He worked as secretary to the board of directors and assistant general
manager, deputy general manager, general manager and deputy secretary
of the party committee of Jiangsu Hiteker High-tech Co., Ltd. (
江蘇宏
圖高科技股份有限公司
). He also served as director, general manager,
deputy secretary of the party committee, secretary of the party committee
and chairman of the board of Govtor Capital Group Co., Ltd. (
江蘇高
科技投資集團有限公司
). Mr. Zhang has been the secretary of the party
committee of the Company since March 2019 and has been chairman
of the Board of Directors of the Company since December 2019 with a
term of office in current session of the Board from December 2022 to
December 2025.
Zhou Yi
Bachelor of computer communications. Mr. Zhou once served as the
chairman of the board of directors of Jiangsu Bei’er Communication
System Co., Ltd. (
江蘇貝爾通信系統有限公司
) and Nanjing Xinwang
Telecom Tech Co., Ltd. (
南京欣網視訊科技股份有限公司
). He joined
the Company in August 2006, and once served as deputy secretary of
the party committee, President, secretary of the party committee, the
chairman of the Board of Directors and party committee member of the
Company, etc. He has been a Director of the Company since December
2007, and has been chief executive officer and chairman of the Executive
Committee of the Company since October 2019 with a term of office in
current session of the Board and the senior management from December
2022 to December 2025.
138
Name
Primary work experience
Ding Feng
Master of business administration and senior accountant. He served
as accountant of the finance department of China Songhai Industrial
Corporation (
中國嵩海實業總公司
) in Xiamen Special Economic Zone
from August 1990 to November 1992; chief accountant of the finance
department of China North Industries Corporation Xiamen Branch (
中
國北方工業廈門公司
) from December 1992 to September 1995; deputy
section chief of the finance department of Jiangsu International Trust
and Investment Company (
江蘇省國際信託投資公司
) from October
1995 to August 2002; project manager of the finance department of
Guoxin Group from August 2002 to September 2004; head of the finance
department (manager assistant) and deputy general manager of Jiangsu
International Trust Corporation Limited (
江蘇省國際信託有限責任公司
)
from September 2004 to December 2009; deputy general manager of the
finance department of Guoxin Group from December 2009 to December
2010; (standing) vice president of Jiangsu Guoxin Group Finance Co.,
Ltd. (
國信集團財務有限公司
) from December 2010 to December 2011;
president and deputy secretary of the Party Committee of Jiangsu Guoxin
Group Finance Co., Ltd. from January 2012 to March 2018; the general
manager of finance department of Guoxin Group from March 2018
to December 2024; and the deputy secretary of the Party Committee
and director of Jiangsu International Trust Corporation Limited from
December 2024 to March 2025. He has been the deputy secretary of
the Party Committee, a director and the general manager of Jiangsu
International Trust Corporation Limited since March 2025. He has been
a Director of the Company since October 2018 with a term of office in
current session of the Board from December 2022 to December 2025.
Chen
Zhongyang
Master’s degree in highway, urban road and airport engineering and is
a senior engineer of the researcher rank. He served as a staff member
and the Deputy Section Chief (presiding over the work) of the Planning
Division of the Jiangsu Expressway Command Office from June 1992 to
November 2000; and the deputy manager (presiding over the work) of the
Operation and Development Department of Jiangsu Jinghu Expressway
Co., Ltd. (
江蘇京滬高速公路有限公司
) from November 2000 to August
2001; an employee (senior engineer), the Deputy Director and Director
of the Road Assets and Interests Section of Jiangsu Communications
Industry Group Co., Ltd. (
江蘇交通產業集團有限公司
) from August
2001 to October 2004; the Deputy Director of the Operation Safety
Department, Deputy Director of the Engineering Technology Department,
Deputy Director of the Engineering Technology Department, Deputy
Director of the Expansion Project Office, Director of the Expansion
Project Office, Deputy Director of the Engineering Technology
Department, and Director of Corporate Management and Legal Affairs
Department of Jiangsu Communications Holding Co., Ltd. (
江蘇交通控
股有限公司
) from October 2004 to November 2017; the Chairman, Party
Secretary and General Manager, and Chairman and Party Secretary of
Jiangsu Jinghu Expressway Co., Ltd. from November 2017 to April 2019;
the Party Secretary and Director of Jiangsu Expressway Operation and
Management Center (
江蘇省高速公路經營管理中心
) and the assistant
to the General Manager of Jiangsu Communications Holding Co., Ltd.
from April 2019 to July 2020. He has been the Deputy General Manager
and member of the Party Committee of Jiangsu Communications Holding
Co., Ltd. since July 2020 (concurrently served as the general counsel
from December 2022 to September 2023). He has served as a Director of
the Company since June 2022 with a term of office in current session of
the Board from December 2022 to December 2025.
139
Name
Primary work experience
Ke Xiang
Doctoral degree in corporate management and senior engineer. From
August 1996 to October 2002, he successively served as staff member
of the infrastructure investment division, staff member and deputy
senior staff member of the agriculture division of Jiangsu Provincial
Department of Finance. From October 2002 to August 2020, he worked
at Jiangsu Communications Holding Co., Ltd. and successively served as
assistant to the director of the office, deputy director of the office, deputy
director of the operation and safety department, deputy director of the
Toll Management Center of Expressway Network of Jiangsu Province,
director of the Information Center and deputy director of the office,
director of the development strategy and policy regulation research
office, deputy director of the investment and development department,
director of the strategic research office, deputy director of the corporate
management and legal affairs department, and director of the strategic
planning department. Since August 2020, he has been deputy general
manager and member of the party committee of Govtor Capital Group
Co., Ltd. Since November 2020, he has been deputy general manager,
member of the party committee and general counsel of Govtor Capital
Group Co., Ltd. He has been a Director of the Company since February
2021 with a term of office in current session of the Board from December
2022 to December 2025.
Liu Changchun
Master’s degree in national economy and is a senior political engineer.
He served as a cadre, staff member and senior staff member of the
Counsellors’ Office of Jiangsu Provincial People’s Government from
August 1996 to July 2003; senior staff member of the General Division
of the Elderly Cadre Bureau of Jiangsu Provincial Committee from
July 2003 to August 2004; senior staff member, principal staff member
and deputy director of the General Division (Policy and Regulations
Division) of the office of the State-owned Assets Supervision and
Administration Commission of Jiangsu Provincial People’s Government
(Party Committee Office) from August 2004 to January 2015; deputy
general manager (department general manager level), general manager
of the strategic planning department, director of the Party Committee
office, secretary to the board of directors, director of the office of the
board of directors, general manager of the human resources department
(organization department of the Party Committee) and deputy director of
the Inspection Work Office of the Party Committee of SOHO Holdings
from January 2015 to August 2020; vice president, member of the Party
Committee and secretary to the board of directors of Jiangsu SOHO
Holdings Group Co., Ltd. from August 2020 to September 2020; the vice
president, a member of the Party Committee, secretary to the board of
directors and general counsel of Jiangsu SOHO Holdings Group Co., Ltd.
from September 2020
to September 2024; deputy secretary of the
Party Committee of Jiangsu Port Group Co., Ltd. (
江蘇省港口集
團有限公司
) from September 2024 to December 2024; and has
served as deputy secretary of the Party Committee and director of
Jiangsu Port Group Co., Ltd. since December 2024
. He has served
as a Director of the Company since November 2023 with a term of office
in current session of the Board from December 2022 to December 2025.
140
Name
Primary work experience
Zhang Jinxin
Doctoral degree in industrial economics. From July 1994 to September
1997, he served as intern researcher in the Institute of Occupational
Medicine of the General Research Institute of Coal Science (
煤炭科學
研究總院職業醫學研究所
); from March 2000 to September 2001, he
served as analyst in the development strategy department of Lenovo
Group Limited; from July 2005 to September 2017, he served as the
lecturer and associate professor of accounting and deputy head of the
accounting department at the School of Economics and Management
of Beijing Jiaotong University; from September 2017 to June 2023, he
has served as the deputy general manager of the research and planning
department of Chengtong Fund Management Company Limited (
誠通
基金管理有限公司
) from June 2023 to present, he has served as the
general manager of the research and planning department of Chengtong
Fund Management Company Limited. He has served as a Director of the
Company since December 2022 with a term of office in current session
of the Board from December 2022 to December 2025.
Wang Jianwen
Doctoral degree in civil and commercial law. From August 1998 to May
2006, he taught at Nanjing Tech Law School. From May 2006 to May
2016, he taught at Hohai University School of Law. From May 2016
to April 2021, he has been a professor, doctor-postgraduate supervisor
and dean at the College of Humanities and Social Sciences of Nanjing
University of Aeronautics and Astronautics, and has been a professor and
doctor-postgraduate supervisor at the Law School of Nanjing University
and the director of the Competing Policy and Corporate Compliance
Research Center of Nanjing University since May 2021. He successively
served as member of the legal expert pool of Jiangsu Provincial
Party Committee (first session and second session), decision-making
advisory expert of the thirteenth session of the Standing Committee of
Jiangsu Provincial People’s Congress, legal advisor of Jiangsu Political
Consultative Conference (first session and second session), non-
permanent member of the selection committee of judges and prosecutors
of Jiangsu Province (second session and third session), associate
expert of the leader group of the Jiangsu Provincial Administration
of Market Regulation, specially invited advisory expert of Nanjing
Intermediate People’s Court, legal advisor of Nanjing Qinhuai District
Party Committee and other positions. He has been an independent non-
executive Director of the Company since June 2020 with a term of office
in current session of the Board from December 2022 to December 2025.
141
Name
Primary work experience
Wang
Quansheng
Doctoral degree in business management. He served as a teaching
assistant in the Information Center of the Business School of Nanjing
University from September 1993 to August 1995; a lecturer in the
Information Center of the Business School of Nanjing University from
September 1995 to March 2001; an associate professor and the Deputy
Dean of the Department of E-commerce of the Business School of
Nanjing University from April 2001 to September 2008; an associate
professor and the Dean of the Department of E-commerce of the Business
School of Nanjing University from September 2008 to December
2010; a professor and the Dean of the Department of E-commerce of
the Business School of Nanjing University from January 2011 to July
2013; a professor and the Dean of the Department of Marketing and
E-commerce of the Business School of Nanjing University from July
2013 to September 2016; and a professor and the Deputy Dean of the
Management School of Nanjing University from September 2016 to
November 2020. He has been a professor and the Deputy Dean of the
Business School of Nanjing University since November 2020. He has
served as an independent non-executive Director of the Company since
June 2022 with a term of office in current session of the Board from
December 2022 to December 2025.
Peng Bing
Doctoral degree in international law. From July 1993 to August 1994,
he served as employee of Chuzhou Sub-branch, Anhui Branch of the
Industrial and Commercial Bank of China; from April 2000 to July 2005,
he served as lecturer at the Law School of Peking University; from July
2005 to July 2017, he served as associate professor at the Law School of
Peking University; from July 2017 to present, he has served as professor
at the Law School of Peking University. At present, he concurrently
serves as arbitrator of Shenzhen Court of International Arbitration,
arbitrator of Beijing Arbitration Commission, mediator of Shenzhen
Securities and Futures Dispute Resolution Centre, and vice president
and secretary general of China Business Law Society. He has served as
an independent non-executive Director of the Company since December
2022 with a term of office in current session of the Board from December
2022 to December 2025.
Wang Bing
Doctoral degree in accounting. From July 2007 to December 2011, he
served as lecturer in the Department of Accounting of Nanjing University
Business School; from December 2011 to December 2016, he served
as associate professor in the Department of Accounting of Nanjing
University Business School; from December 2016 to January 2022,
he served as associate professor and secretary of the party branch of
the Department of Accounting of Nanjing University Business School;
from January 2022 to December 2022, he served as associate professor,
deputy head of the Department and secretary of the party branch of the
Department of Accounting of Nanjing University Business School; from
December 2022 to January 2024, he served as professor, deputy head of
the Department and secretary of the party branch of the Department of
Accounting of Nanjing University Business School; from January 2024
to present, he has served as professor and deputy head of the Department
of the Department of Accounting of Nanjing University Business School.
He has served as an independent non-executive Director of the Company
since December 2022 with a term of office in current session of the
Board from December 2022 to December 2025.
142
Name
Primary work experience
Lo Kin Wing
Terry
Bachelor’s degree in sociology. From August 1982 to December 1988,
he served as the manager of the actuarial department of American
International Assurance Company, Limited; from December 1988 to
August 1994, he served as the actuary of East Asia Aetna Insurance
Company Limited; from August 1994 to December 1995, he served
as the financial controller of HSBC Life Insurance Company Limited
(Hong Kong); from December 1995 to February 2006, he served as
the CEO of Hang Seng Life Limited; from January 1996 to December
2007, he served as the CEO of HSBC Life Insurance Company Limited
(Hong Kong); from December 2007 to June 2009, he served as the
person in charge of HSBC Life Insurance Company Limited (China) (in
preparation); from June 2009 to November 2012, he served as the CEO
of HSBC Life Insurance Company Limited (China); from July 2013 to
November 2013, he served as the vice president of BOC Group Life
Assurance Company Limited (Hong Kong); from November 2013 to
September 2019, he served as the executive president of BOC Group Life
Assurance Company Limited (Hong Kong); from October 2013 to March
2020, he served as a consultant to BOC Group Life Assurance Company
Limited (Hong Kong). He has been an independent non-executive
Director of the Company since June 2024 with a term of office in the
current session of the Board from December 2022 to December 2025.
Gu Chengzhong
Master’s degree in coastal engineering. He once worked in Nanjing
Public Security Bureau. He joined the Company in May 1998, and once
worked as the general manager of Nanjing branch of the Company.
He has been the general manager of the compliance and legal affairs
department of the Company since January 2019 and an Employee
Representative Supervisor of the Company since April 2019. He has
been the chairman of Supervisory Committee of the Company since
October 2021 with a term of office in current session of the Supervisory
Committee from December 2022 to December 2025.
143
Name
Primary work experience
Lv Wei
Master’s degree in information technology management. From June 2013
to November 2018, he successively served as a staff member, deputy
principal staff member and principal staff member of the Foreign Funds
Utilization Audit Division of Nanjing Special Commissioner’s Office
of the National Audit Office; from November 2018 to March 2023, he
successively served as the principal staff member, first-level principal
staff member and deputy director of the Financial Audit Division of
Nanjing Special Commissioner’s Office of the National Audit Office;
from March 2023 to August 2024, he served as the deputy general
manager of the Audit Department of Jiangsu Guoxin Investment Group
Limited (
江蘇省國信集團有限公司
); since August 2024, he has been
the deputy general manager of Jiangsu Investment Management Co. Ltd
(
江蘇省投資管理有限責任公司
). He has served as Supervisor of the
Company since June 2024 with a term of office in the current session of
the Supervisory Committee from December 2022 to December 2025.
Yu Lanying
Master’s degree in industrial economics, a principal senior accountant
and certified public accountant. She served at the finance department
of Nanjing Runtai Industrial Trading Company (
南京潤泰實業貿
易公司
) from August 1993 to August 1996. She pursued master’s
studies of industrial economics in Nanjing University of Science and
Technology (
南京理工大學
) from September 1996 to April 1999,
served at the finance and audit department of Jiangsu United Trust
and Investment Company (
江蘇聯合信託投資公司
) from May 1999
to December 2002. She worked at the finance and audit division of
Jiangsu Communications Industry Group Co., Ltd. (
江蘇交通產業集團
有限公司
) from January 2003 to September 2004, the finance and audit
department of Jiangsu Communications Holding Co., Ltd. (
江蘇交通控
股有限公司
) from October 2004 to May 2008. She successively served
as the deputy manager (in charge of work), manager of the finance and
accounting division, deputy chief financial officer (departmental level),
chief financial officer and member of the Party Committee of Jiangsu
Expressway Company Limited (
江蘇寧滬高速公路股份有限公司
) from
June 2008 to November 2016. She served as the deputy general manager,
chief financial officer and member of the Party Committee of Jiangsu
Expressway Company Limited from November 2016 to March 2018,
head of the audit and risk control department of Jiangsu Communications
Holding Co., Ltd. from March 2018 to August 2018 and has served as
head of the audit and risk control department and supervisor of audit
center of Jiangsu Communications Holding Co., Ltd. from August 2018
to November 2019, head of the financial management department of
Jiangsu Communications Holding Co., Ltd. since November 2019 to
June 2022, assistant to the general manager and head of the financial
management department of Jiangsu Communications Holding Co., Ltd.
from June 2022 to August 2023, and chief accountant and member of
the party committee of Jiangsu Communications Holding Co., Ltd. since
August 2023. She has served concurrently as Supervisor of the Company
since October 2018, with a term of office in current session of the
Supervisory Committee from December 2022 to December 2025.
144
Name
Primary work experience
Zhang Xiaohong
Master’s degree in business administration and is an international
business operator. Ms. Zhang served as the export sales manager of
Nanjing Native Produce and Animal Byproducts Import and Export Co.,
Ltd. (
南京市土產畜產進出口股份公司
) from August 1989 to April
1997; assistant to the manager and manager of Jiangsu Xinsu Investment
Management Co., Ltd. (
江蘇鑫蘇投資管理有限公司
) from April 1997 to
November 2000; manager of Jiangsu Venture Capital Co., Ltd. (
江蘇省
創業投資有限公司
) from
December
2000 to May 2005; senior manager,
deputy general manager of the asset management department, general
manager of the asset management department and general manager of
the investment operations department of Govtor Capital Group Co., Ltd.
(
江蘇高科技投資集團有限公司
) from May 2005 to July 2020; and vice
general manager of Govtor Capital Group Co., Ltd. since July 2020. She
has served as a Supervisor of the Company since December 2019, with
a term of office in current session of the Supervisory Committee from
December 2022 to December 2025.
Zhou Hongrong
College degree in financial accounting and international trade and is a
principal senior accountant. From August 1993 to May 2003, she served
as clerk of the garment finance division and deputy section chief of the
garment finance and accounting division of the asset finance department
of Jiangsu Silk Import & Export Group Co. Ltd.; from May 2003 to
January 2010, she served as deputy section chief of the garment finance
and accounting division, deputy section chief of the second accounting
division, deputy section chief of the light textile finance and accounting
division, and head of the light textile finance and accounting division
of the finance department of Jiangsu SOHO International Group Corp.;
from January 2010 to March 2012, she served as assistant to the general
manager of the asset and finance department of Jiangsu Silk Group
Corporation; from March 2012 to December 2020, she served as deputy
general manager of asset and finance department and general manager of
asset and finance department of Jiangsu SOHO Holdings Group Co., Ltd.;
from December 2020 to present, she has served as vice president and
member of the party committee of Jiangsu SOHO Holdings Group Co.,
Ltd.; from August 2023 to present, she has served as chief accountant
and party committee member of Jiangsu SOHO Holdings Group Co., Ltd.
She has served as Supervisor of the Company since December 2022 with
a term of office in current session of the Supervisory Committee from
December 2022 to December 2025.
145
Name
Primary work experience
Wang Ying
Master’s degree in public administration. She once worked in the
organization department of the Municipal Committee of Yangzhong and
the Municipal Party Committee of Youth League in Yangzhong, and once
served as deputy division chief of the public working division, deputy
division chief of the Party construction work division and deputy division
chief of the enterprise leadership personnel management division of
the State-owned Assets Supervision and Administration Commission of
Jiangsu Provincial People’s Government, etc. She joined the Company in
January 2016, and has served as the head of the Communist Party union
working department of the Company since April 2016, an Employee
Representative Supervisor of the Company since December 2019, and
the chairman of labor union of the Company since December 2021, with
a term of office in current session of the Supervisory Committee from
December 2022 to December 2025.
Wang Juan
Master of scientific socialist legal system construction. She once
worked in the Publicity Department of the CPC Jiangsu Provincial
Committee, and once served as a deputy director (presiding over the
work), the head of the Communist Party union working department of
the General Administration Department of Jiangsu Cultural Investment &
Management Group Co., Ltd., etc., during which, she once also served as
an executive director and the general manager of Jiangsu Zijin Cultural
and Creative Industry Development Company Limited. From July 2020
to February 2023, she served as the deputy director of the Office of the
Company. She has been the Employee Representative Supervisor of
the Company since October 2021, and the director of the Office of the
Company since February 2023, with a term of office in current session of
the Supervisory Committee from December 2022 to December 2025.
146
Name
Primary work experience
Han Zhencong
Doctor of management science and engineering and is a senior economist.
He served as a member of the Leading Party Members’ Group and deputy
general manager of China Telecom Jiangsu Company Limited (
中國電
信江蘇公司
); the secretary of the Leading Party Members’ Group and
general manager of China Telecom Heilongjiang Company Limited; the
general manager of the government and enterprise customer business
division of China Telecom, and the secretary of the Party Committee and
general manager of China Telecom Zhejiang Company Limited, etc. He
joined the Company in December 2019 and has been a member of the
Executive Committee and the chief information officer of the Company
since April 2022 with a term of office in current session of the senior
management from December 2022 to December 2025.
Sun Hanlin
Master of business administration, Mr. Sun once worked at Jiangsu
Branch of the PBOC. He joined the Company in August 1997,
and worked as the chief of human resources division, chief of the
organization department, general manager of the human resources
department, secretary of the discipline inspection commission, chief
inspection officer, a member of the Party Committee and vice president
of the Company, etc. He has been a member of Executive Committee
of the Company since December 2019 with a term of office in current
session of the senior management from December 2022 to December
2025.
147
Name
Primary work experience
Jiang Jian
Master of agricultural economics and management. Mr. Jiang once
worked at Nanjing Agricultural University (
南京農業大學
). He joined
the Company in December 1994, and once served as the deputy general
manager of the investment banking head office, the general manager of
the asset management head office, general manager of the investment
banking business Nanjing head office, director of investment banking
business and general manager of Nanjing head office, the secretary to the
Board of Directors, vice president and a member of the Party Committee
of the Company, etc. He has been a member of Executive Committee
of the Company since December 2019 with a term of office in current
session of the senior management from December 2022 to December
2025.
Zhang Hui
Doctor of technology economics and management. He joined the
Company in February 2003, and once served as a senior manager of the
asset management head office, deputy general manager of the business
office at Nantong Yaogang Road, the general manager of the business
office at Shanghai Ruijin First Road, deputy general manager of securities
investment department, the general manager of the general affairs
department, the general manager of the human resources department
and head of the organization department of the Party Committee of the
Company. He has been the secretary to the Board of Directors since April
2017, a member of the Executive Committee since December 2019 and
party committee member of the Company since July 2022, with a term of
office in current session of the senior management from December 2022
to December 2025.
148
Name
Primary work experience
Chen Tianxiang
Master’s degree in control science and engineering. Mr. Chen once
worked at Eastcom Co., Ltd. (
東方通信股份有限公司
) and Nanjing
Xinwang Telecom Tech Co., Ltd. (
南京欣網視訊科技股份有限公司
). He
joined the Company in September 2007, and once served as the deputy
general manager of the head office of brokerage business, deputy general
manager of the internet finance department (in charge of work), general
manager of the internet finance department of the Company, etc. He
has been a member of the Executive Committee of the Company since
February 2020, with a term of office in current session of the senior
management from December 2022 to December 2025.
Jiao Xiaoning
Master’s degree of accounting, an accountant. She once worked at
Industrial and Commercial Bank of China Beijing Branch as well as the
accounting department of Ministry of Finance (
財政部
). She once served
as deputy inspector and deputy director of the accounting department of
the CSRC, etc. She joined the Company in January 2020 and has been
the chief financial officer of the Company since March 2020, with a term
of office in current session of the senior management from December
2022 to December 2025.
Jiao Kai
Doctor of finance. Mr. Jiao was once the director of board of governors
office and deputy director of executive office, director of CPC Committee
Office and director of board of supervisors office, director of Beijing
center, general manager of membership department of Shanghai Stock
Exchange, etc. He joined the Company in December 2019 serving as the
general legal counsel of the Company and has been the chief compliance
officer and general legal counsel of the Company since February 2020
with a term of office in current session of the senior management from
December 2022 to December 2025.
149
Name
Primary work experience
Wang Chong
Master of computer and finance. Mr. Wang once worked at the treasury
department/global financial marketing department of Bank of China (
中
國銀行
), the London Branch of Bank of China, JP Morgan (UK), China
International Capital Corporation (UK) Limited (
中國國際金融有限公司
(
英國
)). He joined the Company in December 2014, and once served as
general manager of risk management department of the Company. He has
been the chief risk officer of the Company since March 2017 with a term
of office in current session of the senior management from December
2022 to December 2025.
Sun Yan
Bachelor of statistics. She joined the Company in August 1994, and once
served as the compensation and benefits manager of the human resources
department, the assistant to the general manager of the human resources
department and the deputy general manager of the human resources
department of the Company, etc. She has been the general manager of
the human resources department and head of the organization department
of the Party Committee of the Company since March 2019; and director
of human resources of the Company since December 2022. She has been
a member of the party committee of the Company since October 2023
with a term of office in current session of the senior management from
December 2022 to December 2025.
150
(II)
Employment of Directors, Supervisors and senior management at present and those
retired during the Reporting Period
1.
Employment at the Shareholders
’
companies
Name of employee
Name of
the Shareholder’s companies
Position
Commencement of
the term of office
Expiration of
the term of office
Ding Feng
Jiangsu Guoxin Investment
Group Limited
General manager of the
finance department
March 8, 2018
December 18, 2024
Chen Zhongyang
Jiangsu Communications
Holding Co., Ltd.
Deputy general manager,
party
committee member
June 8, 2020
–
Ke Xiang
Govtor Capital
Group Co., Ltd.
Deputy general manager,
party
committee member
August 17, 2020
–
General legal counsel
November 11, 2020
–
Liu Changchun
Jiangsu SOHO Holdings
Group Co., Ltd.
Vice president,
party committee member
August 14, 2020
September 27, 2024
Secretary to
the board of directors
May 25, 2017
–
General legal counsel
September 28, 2020
–
Lv Wei
Jiangsu Guoxin Investment
Group Limited
Deputy general manager of
the audit department
March 17, 2023
August 5, 2024
Yu Lanying
Jiangsu Communications
Holding Co., Ltd.
Chief accountant, party
committee member
August 28, 2023
–
Zhang Xiaohong
Govtor Capital Group
Deputy general manager
July 8, 2020
–
Zhou Hongrong
Jiangsu SOHO Holdings
Group Co., Ltd.
Party committee member
Chief accountant
December 10, 2020
August 23, 2023
–
–
Explanation of the
employment at
the Shareholders’
Companies
Nil
151
2.
Employment at other companies
Name of
employee
Name of other companies
Position
Commencement of
the term of office
Expiration of
the term of office
Zhou Yi
Huatai Financial Holdings (Hong Kong)
Limited
Director
November 28, 2006
–
AssetMark Financial Holdings, Inc.
Director
October 31, 2016
September 5, 2024
CSOP Asset Management Limited (
南方東
英資產管理有限公司
)
Chairman
November 7, 2017
–
China Southern Asset Management Co.,
Ltd. (
南方基金管理股份有限公司
)
Chairman
May 27, 2022
–
Huatai Securities (Singapore) Pte. Limited
Director
September 20, 2022
–
Ding Feng
Jiangsu United Credit Service Co., Ltd. (
江
蘇省聯合征信有限公司
)
Director
June 14, 2019
November 27, 2024
Jiangsu Guoxin Credit Financing Guarantee
Co., Ltd. (
江蘇省國信信用融資擔保有
限公司
)
Director
August 12, 2019
–
Zking Property & Casualty Insurance Co.,
Ltd. (
紫金財產保險股份有限公司
)
Director
February 20, 2021
–
Lian Life Co., Ltd. (
利安人壽股份有限公
司
)
Director
February 8, 2023
–
Jiangsu International Trust Corporation
Limited (
江蘇省國際信託有限責任公司
)
Vice chairman
March 22, 2024
December 19, 2024
Deputy secretary
of the party
committee,
director, general
manager
(proposed)
December 19, 2024
–
Chen Zhongyang
Jinling Hotel Co., Ltd. (
金陵飯店股份有限
公司
)
Director
May 25, 2021
June 12, 2024
Ke Xiang
Jiangsu Addor Huijing Asset Management
Co., Ltd. (
江蘇毅達匯景資產管理有限
公司
)
Director
November 4, 2020
–
Jiangsu Govtor Asset Management Co., Ltd.
(
江蘇高投資產管理有限公司
)
Director, general
manager
December 8, 2020
–
Jiangsu Fenghai New Energy Seawater
Desalination Development Co., Ltd. (
江
蘇豐海新能源淡化海水發展有限公司
)
Director
December 18, 2020
–
Liu Changchun
Jiangsu Port Group Co., Ltd.
Deputy secretary
of the party
committee
September 27, 2024
–
Director
December 3, 2024
–
152
Name of
employee
Name of other companies
Position
Commencement of
the term of office
Expiration of
the term of office
Zhang Jinxin
Shanxi Jinbo Bio-Pharmaceutical Co., Ltd.
(
山西錦波生物醫藥股份有限公司
)
Independent director
March 12, 2020
–
Beijing Tiandetai Technology Company
Limited (
北京天德泰科技股份有限公司
)
Independent director
April 28, 2020
May 14, 2024
Gkht (Beijing) Medical Technology Co.,
Ltd. (
國科恒泰
(
北京
)
醫療科技股份有限
公司
)
Independent director
December 12, 2022
–
Chengtong Fund Management Company
Limited (
誠通基金管理有限公司
)
General manager
of the research
and planning
department
June 5, 2023
–
Wang Jianwen
Changshu Feifan Metalwork Co., Ltd. (
常熟
非凡新材股份有限公司
)
Independent director
April 15, 2021
–
Law School of Nanjing University
Professor
May 1, 2021
–
Tongfu Microelectronics Co., Ltd. (
通富微
電子股份有限公司
)
Independent director
December 16, 2021
–
Nanjing Xinjiekou Department Store Co.,
Ltd. (
南京新街口百貨商店股份有限公
司
)
Independent director
January 17, 2023
–
Trinapower Co., Ltd. (
天合富家能源股份有
限公司
)
Independent director
April 23, 2023
–
Wang Quansheng
Business School of Nanjing University
Professor
December 31, 2010
–
Deputy dean
November 30, 2020
–
Nanjing Iron & Steel Co., Ltd.
(
南京鋼鐵股份有限公司
)
Independent director
June 30, 2022
–
Peng Bing
Law School of Peking University
Professor
April 1, 2000
–
Bank of Tianjin Co., Ltd.
Independent director
January 27, 2025
–
Wang Bing
HIT Welding Industry Co., Ltd. (
哈焊所華
通
(
常州
)
焊業股份有限公司
)
Independent director
June 1, 2019
March 19, 2024
Kuangda Technology Group Co. Ltd.
(
曠達科技集團股份有限公司
)
Independent director
May 12, 2020
–
Jiangsu Jiuwu High-Tech Co., Ltd.
(
江蘇久吾高科技股份有限公司
)
Independent director
June 20, 2022
–
Department of Accounting of the Business
School of Nanjing University
Professor
December 31, 2022
–
Lo Kin Wing
Terry
Insurance Authority (Hong Kong)
Non-executive
director
December 28, 2021
–
Gu Chengzhong
Huatai Purple Gold Investment Co., Ltd.
(
華泰紫金投資有限責任公司
)
Supervisor
January 18, 2019
–
Jiangsu Equity Exchange Co., Ltd.
(
江蘇股權交易中心有限責任公司
)
Supervisor
March 18, 2020
January 20, 2025
153
Name of
employee
Name of other companies
Position
Commencement of
the term of office
Expiration of
the term of office
Lv Wei
Jiangsu Software Industry Co., Ltd. (
江蘇
省軟件產業股份有限公司
)
Director
July 20, 2023
–
Jiangsu Coastal Gas Pipeline Co., Ltd. (
江
蘇省沿海輸氣管道有限公司
)
Chairman of the
supervisory
committee
August 2, 2023
–
Jiangsu Guoxin Group (Ningguo) Pumped
Storage Power Generation Co., Ltd. (
江
蘇省國信集團
(
寧國
)
抽水蓄能發電有限
公司
)
Chairman of the
supervisory
committee
September 22, 2023
November 29, 2024
Hong Kong Broadsino Investment Co., Ltd.
Chairman of the
supervisory
committee
October 30, 2023
–
Jiangsu Investment Management Co., Ltd.
(
江蘇省投資管理有限責任公司
)
Deputy general
manager
August 5, 2024
–
Wuxi Innovation Investment Group Co.,
Ltd. (
無錫市創新投資集團有限公司
)
Director
January 17, 2025
–
Yu Lanying
Jiangsu Re-guarantee Group Co., Ltd.
(
江蘇省信用再擔保集團有限公司
)
Supervisor
May 27, 2018
August 12, 2024
Jiangsu Salt Industry Group Co., Ltd.
(
江蘇省鹽業集團有限責任公司
)
Chairman of the
supervisory
committee
December 3, 2018
–
Jiangsu Jinsuzheng Investment and
Development Co., Ltd.
(
江蘇金蘇證投資發展有限公司
)
Director
December 3, 2018
–
Bank of Nanjing Co., Ltd.
(
南京銀行股份有限公司
)
Director
September 16, 2020
January 8, 2024
Jiangsu Financial Leasing Co., Ltd.
(
江蘇金融租賃股份有限公司
)
Director
February 7, 2024
–
Bank of Jiangsu Co., Ltd. (
江蘇銀行股份有
限公司
)
Director
May 17, 2024
–
Jiangsu Railway Group Co., Ltd. (
江蘇省
鐵路集團有限公司
)
Chairman of the
supervisory
committee
June 21, 2024
–
Zhang Xiaohong
Jiangsu Talent Innovation and Venture
Service Center Co., Ltd.
(
江蘇省人才創新創業服務中心
有限公司
)
Legal representative,
executive director
and general
manager
October 9, 2019
–
Jiangsu Govtor Asset Management Co., Ltd.
(
江蘇高投資產管理有限公司
)
Legal representative,
chairman
August 26, 2021
–
Jiangsu Xinxin Retail Innovation Fund
(Limited Partnership) (
江蘇新新零售創
新基金
(
有限合夥
))
Designated
representative of
executive partner
August 26, 2021
–
Jiangsu Govtor Innovation Investment Co.,
Ltd. (
江蘇高投創新投資有限責任公司
)
Legal representative,
executive director
April 18, 2023
–
Jiangsu Addor Equity Investment Fund
Management Co., Ltd.
(
江蘇毅達股權投資基金管理有限公司
)
Supervisor
June 26, 2023
–
154
Name of
employee
Name of other companies
Position
Commencement of
the term of office
Expiration of
the term of office
Jiangsu Strategic and Emerging Industries
Parent Fund Co., Ltd. (
江蘇省戰略性新
興產業母基金有限公司
)
Supervisor
September 21, 2023
–
Wuxi Zhanxin Private Fund Management
Co., Ltd. (
無錫戰新私募基金管理有限
公司
)
Director
August 16, 2024
–
Han Zhencong
Huatai International Financial Holdings
Company Limited (
華泰國際金融控股有
限公司
)
Director
October 2, 2024
–
Sun Hanlin
Jiangsu Equity Exchange Co., Ltd. (
江蘇股
權交易中心有限責任公司
)
Legal representative,
chairman
March 1, 2021
March 6, 2024
Jiang Jian
Bank of Jiangsu Co., Ltd. (
江蘇銀行股份有
限公司
)
Director
May 16, 2012
–
Zhang Hui
China Southern Asset Management Co.,
Ltd. (
南方基金管理股份有限公司
)
Director
October 18, 2016
–
Chen Tianxiang
Huatai Securities (Shanghai) Asset
Management Co., Ltd. (
華泰證券
(
上海
)
資產管理有限公司
)
Director
March 30, 2018
–
Jiao Xiaoning
AssetMark Financial Holdings, Inc.
Chairman
April 21, 2020
September 5, 2024
Huatai Securities (Shanghai) Asset
Management Co., Ltd. (
華泰證券
(
上海
)
資產管理有限公司
)
Director
August 10, 2020
–
Huatai International Financial Holdings
Company Limited (
華泰國際金融控股有
限公司
)
Director
October 2, 2024
–
Wang Chong
Huatai International Financial Holdings
Company Limited (
華泰國際金融控股有
限公司
)
Director
February 28, 2018
–
Huatai Financial Holdings (Hong Kong)
Limited (
華泰金融控股
(
香港
)
有限公司
)
Chief risk officer
July 30, 2018
–
Huatai Securities USA Holdings, Inc.
Director
September 28, 2018
–
Huatai Securities (USA), Inc.
Director
September 28, 2018
–
Tse Yung Hoi
BOCI-Prudential Asset Management
Limited
Chairman
January 24, 2003
–
BOCOM International Holdings Company
Limited
Independent director
June 26, 2014
–
Qianhai Financial Holding Limited
Independent director
July 21, 2014
March 1, 2024
Vico International Holdings Limited
Independent director
January 16, 2018
March 1, 2024
Li Chongqi
Jiangsu Railway Group Co., Ltd.
Director
May 20, 2020
June 21, 2024
(
江蘇省鐵路集團有限公司
)
Chief accountant,
party committee
member
August 28, 2023
–
Jiangsu Radio and Television Information
Network Investment Company Limited
(
江蘇省廣播電視信息網絡投資有限公
司
)
Vice chairman
May 20, 2020
–
Explanation of
other jobs
Nil
155
(III) Remuneration of the Directors, Supervisors and senior management
Currency: RMB
Decision-making
procedures of
remuneration of the
Directors, Supervisors
and senior management
The Remuneration and Appraisal Committee of the Board
is responsible for advising the Board on the remuneration
structure and policies of the Directors and senior
management of the Company. The Board makes decisions
on matters relating to the remuneration of and reward and
punishment of senior management in accordance with
relevant policies, and matters relating to the remuneration
of Directors and Supervisors shall be determined at the
general meeting.
Whether the Director
abstains from
discussion on his/her
remuneration at the
Board meeting
Yes
Recommendation
on salaries of the
Directors, Supervisors
and senior management
from the Remuneration
and Appraisal
Committee or the
special meeting of the
independent Directors
On March 27, 2025, the Remuneration and Appraisal
Committee of the sixth session of the Board of the
Company considered and approved the Report on
Performance Assessment and Remuneration of the
Supervisors of the Company for 2024 and the Report on
Performance of Duties, Performance Assessment and
Remuneration of the Senior Management of the Company
for 2024 at its 2025 first meeting, and agreed to submit
these two resolutions to the Board of the Company for
consideration.
The basis for determining
the remuneration of the
Directors, Supervisors
and senior management
The external Directors and external Supervisors of the
Company do not receive remuneration from the Company;
standard of remuneration of the independent Directors is
determined with reference to that of the listed peers and
based on actual situation of the Company; remuneration
of internal Directors, employee representative Supervisors
and the senior management applies relevant policies of
competent authorities and the remuneration assessment
system of the Company, and determined in accordance
with the Company’s operation, job responsibilities and the
result of annual and tenure performance, as it is linked to
position and performance.
156
Actual payments of
remuneration of the
Directors, Supervisors
and senior management
Please refer to “Changes in shareholding structure
and remuneration of current and resigned Directors,
Supervisors and senior management during the Reporting
Period” in this report for details.
Total remuneration
actually obtained by all
Directors, Supervisors
and senior management
at the end of the
Reporting Period
Please refer to “Changes in shareholding structure
and remuneration of current and resigned Directors,
Supervisors and senior management during the Reporting
Period” in this report for details.
(IV) Changes in Directors, Supervisors and senior management
Name
Position
Change
Reason for Change
Lo Kin Wing
Terry
Independent non-executive
Director
Elected
Elected at the 2023 annual general meeting
Lv Wei
Supervisor
Elected
Elected at the 2023 annual general meeting
Yin Lihong
Executive Director
Resigned
Due to work adjustment, she will no longer
serve as an executive Director of the
Company
Tse Yung Hoi
Independent non-executive
Director
Resigned
Due to work reasons, he will no longer serve as
an independent non-executive Director of the
Company
Li Chongqi
Supervisor
Resigned
Due to work reasons, she will no longer serve
as a Supervisor of the Company
Notes:
1.
On April 29, 2024, the Board of the Company received a written resignation report from Mr. Tse
Yung Hoi, an independent non-executive Director. Mr. Tse Yung Hoi has proposed to resign as
an independent non-executive Director of the sixth session of the Board of the Company and a
member of the Audit Committee of the Board due to work reasons. As the resignation of Mr. Tse
Yung Hoi will cause the proportion of independent non-executive Directors of the Company to the
total members of the Board to be less than one-third, Mr. Tse Yung Hoi has promised to continue
to perform his duties until the date when a new independent non-executive Director is appointed.
There is no disagreement between Mr. Tse Yung Hoi and the Board of the Company, and there
is no matter in relation to his resignation that needs to be notified to the shareholders of the
Company. Mr. Tse Yung Hoi has also confirmed that he is not a party involved in any on-going or
pending litigation or dispute against the Company.
157
2.
According to the relevant requirements of the Rules for Governance of Securities Companies (
《證
券公司治理準則》
) promulgated by the CSRC and the Articles of Association, Shareholder(s)
severally or jointly holding no less than 3% of the outstanding voting shares of the Company
may recommend candidates for Supervisors (non-employee representative Supervisors) to the
Supervisory Committee.
As Guoxin Group, a shareholder holding more than 3% of the outstanding voting shares of the
Company, has nominated Mr. Lv Wei as a candidate for non-employee representative Supervisor of
the sixth session of the Supervisory Committee, Ms. Li Chongqi will cease to be a non-employee
representative Supervisor of the sixth session of the Supervisory Committee due to business
commitments. There is no disagreement between Ms. Li Chongqi and the Supervisory Committee,
and there is no matter in relation to her resignation that needs to be notified to the shareholders of
the Company.
3.
On June 20, 2024, the Resolution on the Election of Mr. Lo Kin Wing Terry as an Independent
Non-executive Director of the Sixth Session of the Board and the Resolution on the Election of
Mr. Lv Wei as a Non-employee Representative Supervisor of the Sixth Session of the Supervisory
Committee were considered and approved at the 2023 Annual General Meeting of the Company.
From June 20, 2024, Mr. Lo Kin Wing Terry performed his duty as an independent non-executive
Director of the sixth session of the Board of the Company succeeding Mr. Tse Yung Hoi for a term
until the end of the term of the current session of the Board; Mr. Lv Wei performed his duty as a
Supervisor of the sixth session of the Supervisory Committee of the Company succeeding Ms. Li
Chongqi for a term until the end of the term of the current session of the Supervisory Committee.
4.
Mr. Lo Kin Wing Terry obtained the legal advice as required under Rule 3.09D of the Hong Kong
Listing Rules on June 20, 2024, and has confirmed that he understood his obligations as a director
of the Company.
5.
On March 14, 2025, the Board of the Company received a written resignation report from Ms.
Yin Lihong, an executive Director. Ms. Yin Lihong has proposed to resign from her positions as
an executive Director of the sixth session of the Board of the Company and as a member of the
Nomination Committee of the Board due to work adjustment, upon which she no longer holds any
position in the Company. Ms. Yin Lihong has no unfulfilled public commitments or obligations,
there is no disagreement between her and the Board of the Company, and there is no matter
in relation to her resignation that needs to be notified to the shareholders and creditors of the
Company. Ms. Yin Lihong has also confirmed that she is not a party involved in any on-going or
pending litigation or dispute against the Company.
Save as disclosed above, the Company did not appoint or dismiss any Director,
Supervisor or senior management during the Reporting Period. Meanwhile, there is no
change of information about the Directors, Supervisors and chief executives which shall
be disclosed pursuant to Rule 13.51(2) of the Hong Kong Listing Rules.
(V)
As of the end of the Reporting Period, none of the incumbent Directors, Supervisors
and senior management or Directors, Supervisors or senior management who left
office during the Reporting Period had been subject to any penalty imposed by the
securities regulatory authorities during the last three years.
158
V.
MEETINGS OF THE BOARD CONVENED DURING THE REPORTING PERIOD
Meeting
Convening date
Meeting form and place
Meeting motion
Status
The seventh Meeting
of the Sixth Session
of the Board
March 28, 2024
By means of onsite & video
meetings.
Address: Large Conference
Room, Floor 12, Building 1,
Huatai Securities Square, No.
228, Middle Jiangdong Road,
Nanjing; Conference Room 6,
Floor 18, Building A, China
Pacific Insurance Plaza, No.
28 Fengsheng Alley, Xicheng
District, Beijing; Simulated
Video Conference Room,
Shanghai Branch Office of
Huatai Securities, Floor 25, Poly
Plaza, No. 18, Dongfang Road,
Pudong New Area, Shanghai;
Simulated Video Beijing
Conference Room, Huatai
Financial Holdings (Hong Kong)
Limited, 62/F, The Center, 99
Queen’s Road Central, Hong
Kong.
1.
To consider the 2023 Work Report of the Senior Management of the Company;
2.
To consider the 2023 Final Financial Report of the Company;
3.
To consider the 2024 Financial Budget Report of the Company;
4.
To consider the Proposal on the 2023 Profit Distribution of the Company;
5.
To consider the 2023 Work Report of the Board of the Company;
6.
To consider the Resolution on the 2023 Annual Report of the Company;
7.
To consider the Resolution on the 2023 Annual Compliance Report of the
Company;
8.
To consider the Resolution on the 2023 Annual Risk Management Report of the
Company;
9.
To consider the Resolution on the 2023 Annual Internal Control Evaluation Report
of the Company;
10.
To consider the Resolution on the Special Report on Information Technology
Management and Network and Information Security Management of the Company
for 2023;
11.
To consider the Resolution on the 2023 Corporate Social Responsibility Report of
the Company;
12.
To consider the Proposal on the estimated ordinary transactions with related
parties of the Company for 2024;
13.
To consider the Proposal on the estimated investment amount for the proprietary
business of the Company for 2024;
14.
To consider the Internal Audit Work Plan of the Company for 2024;
15.
To consider the Resolution on the Re-appointment of the Accounting Firms for
2024 of the Company;
16.
To consider the Resolution on Amendments to the Administrative Measures for
System Construction of Huatai Securities Co., Ltd.;
17.
To consider the Resolution on Amendments to the System regarding Insider
Registration, Management and Confidentiality of Huatai Securities Co., Ltd.;
18.
To consider the Report on Performance Assessment and Remuneration of Directors
of the Company for 2023;
19.
To consider the Report on Execution of Duty, Performance Assessment and
Remuneration of the Senior Management of the Company for 2023;
20.
To consider the Report on Performance of Duties of the Independent Directors of
the Company for 2023;
21.
To consider the Resolution on Convening the 2023 Annual General Meeting of the
Company;
22.
Debriefing of the Report on Independence Self-examination by the Independent
Directors of the Company;
23.
Debriefing of the Special Opinions of the Board of the Company on Independence
of the Independent Directors;
24.
Debriefing of the Report on Performance of Duties by the Audit Committee of the
Board of the Company for 2023;
25.
Debriefing of the Evaluation Report on Performance of Duties by the Annual
Audit Accounting Firm for 2023 of the Company;
All resolutions were
considered and
approved.
159
Meeting
Convening date
Meeting form and place
Meeting motion
Status
26.
Debriefing of the Report on Performance of Supervisory Duties by the Annual
Audit Accounting Firm for 2023 of the Audit Committee of the Board of the
Company;
27.
Debriefing of the Work Report of the Chief Compliance Officer of the Company
for 2023;
28.
Debriefing of the Work Report on Anti-money Laundering of the Company for
2023;
29.
Debriefing of the Report on Internal Audit of the Company for 2023;
30.
Review of the Report on Net Capital and Other Risk Control Indicators of the
Company for 2023.
The Eighth Meeting of
the Sixth Session of
the Board
April 12, 2024
By means of teleconference.
1.
To consider the Resolution on Fulfilment of Conditions for Release from Selling
Restriction of the Second Lock-up Period under the Restricted Share Incentive
Scheme of A Shares of the Company;
2.
To consider the Resolution on Repurchase and Cancellation of Part of the
Restricted A Shares by the Company;
3.
To consider the Resolutions on Addition to Agenda of the 2023 Annual General
Meeting of the Company and Convening the 2024 First A Share Class Meeting
and the 2024 First H Share Class Meeting.
All resolutions were
considered and
approved.
The Ninth Meeting of
the Sixth Session of
the Board
April 25, 2024
By means of onsite & video
meetings.
Address: Large Conference
Room, Floor 12, Building 1,
Huatai Securities Square, No.
228, Middle Jiangdong Road,
Nanjing; Conference Room 6,
Floor 18, Building A, China
Pacific Insurance Plaza, No.
28 Fengsheng Alley, Xicheng
District, Beijing; Simulated
Video Conference Room,
Shanghai Branch Office of
Huatai Securities, Floor 25, Poly
Plaza, No. 18, Dongfang Road,
Pudong New Area, Shanghai;
Simulated Video Beijing
Conference Room, Huatai
Financial Holdings (Hong Kong)
Limited, 62/F, The Center, 99
Queen’s Road Central, Hong
Kong.
To consider the Resolution on Disposal of the Entire Equity Interests in AssetMark
Financial Holdings, Inc. (a Holding Subsidiary in the United States) through Direct
Agreement.
The resolution was
considered and
approved.
160
Meeting
Convening date
Meeting form and place
Meeting motion
Status
The Tenth Meeting of
the Sixth Session of
the Board
April 29, 2024
By means of onsite & video
meetings.
Address: Large Conference
Room, Floor 12, Building 1,
Huatai Securities Square, No.
228, Middle Jiangdong Road,
Nanjing; Conference Room 6,
Floor 18, Building A, China
Pacific Insurance Plaza, No.
28 Fengsheng Alley, Xicheng
District, Beijing; Simulated
Video Conference Room,
Shanghai Branch Office of
Huatai Securities, Floor 25, Poly
Plaza, No. 18, Dongfang Road,
Pudong New Area, Shanghai;
Simulated Video Beijing
Conference Room, Huatai
Financial Holdings (Hong Kong)
Limited, 62/F, The Center, 99
Queen’s Road Central, Hong
Kong.
1.
To consider the Resolution on the First Quarterly Report of the Company for
2024;
2.
To consider the Proposal on the Election of an Independent Non-executive
Director of the Sixth Session of the Board of the Company;
3.
To consider the Resolution on Proposal to the General Meeting to Authorize the
Board to Decide on the Interim Profit Distribution for 2024;
4.
To consider the Resolution on Addition to Agenda of the 2023 Annual General
Meeting of the Company.
All resolutions were
considered and
approved.
The Eleventh Meeting
of the Sixth Session
of the Board
June 20, 2024
By means of teleconference.
1.
To consider the Resolution on the 2024 Action Plan of “Corporate Value and
Return Enhancement” of the Company;
2.
To consider the Resolution on the Formulation of the Internal Audit Management
System of Huatai Securities Co., Ltd.;
3.
To consider the Resolution on the Adjustment to the Composition Plan of Certain
Special Committees of the Sixth Session of the Board of the Company.
All resolutions were
considered and
approved.
161
Meeting
Convening date
Meeting form and place
Meeting motion
Status
The Twelfth Meeting
of the Sixth Session
of the Board
August 30, 2024
By means of onsite & video
meetings.
Address: Large Conference
Room, Floor 12, Building 1,
Huatai Securities Square, No.
228, Middle Jiangdong Road,
Nanjing; Conference Room 6,
Floor 18, Building A, China
Pacific Insurance Plaza, No.
28 Fengsheng Alley, Xicheng
District, Beijing; Simulated
Video Conference Room,
Shanghai Branch Office of
Huatai Securities, Floor 25, Poly
Plaza, No. 18, Dongfang Road,
Pudong New Area, Shanghai;
Simulated Video Beijing
Conference Room, Huatai
Financial Holdings (Hong Kong)
Limited, 62/F, The Center, 99
Queen’s Road Central, Hong
Kong.
1.
To consider the Resolution on the 2024 Interim Report of the Company;
2.
To consider the Resolution on Adjustment to the Repurchase Price Applicable to
the Restricted Share Incentive Scheme of A Shares of the Company;
3.
To consider the Resolution on Interim Profit Distribution of the Company for
2024;
4.
Review of the Report on Net Capital and Other Risk Control Indicators of the
Company for the first half of 2024.
All resolutions were
considered and
approved.
162
Meeting
Convening date
Meeting form and place
Meeting motion
Status
The Thirteenth
Meeting of the
Sixth Session of the
Board
October 30, 2024
By means of onsite & video
meetings.
Address: Large Conference
Room, Floor 12, Building 1,
Huatai Securities Square, No.
228, Middle Jiangdong Road,
Nanjing; Conference Room 6,
Floor 18, Building A, China
Pacific Insurance Plaza, No.
28 Fengsheng Alley, Xicheng
District, Beijing; Simulated
Video Conference Room,
Shanghai Branch Office of
Huatai Securities, Floor 25, Poly
Plaza, No. 18, Dongfang Road,
Pudong New Area, Shanghai;
Simulated Video Beijing
Conference Room, Huatai
Financial Holdings (Hong Kong)
Limited, 62/F, The Center, 99
Queen’s Road Central, Hong
Kong.
1.
To consider the Resolution on the Third Quarterly Report of the Company for
2024;
2.
To consider the Resolution on Amendments to the Basic System for Anti-Money
Laundering and Anti-Terrorism Financing of Huatai Securities Co., Ltd.
All resolutions were
considered and
approved.
The Fourteenth
Meeting of the
Sixth Session of the
Board
December 20, 2024
By means of teleconference.
1.
To consider the Resolution on the transfer of 20% equity interest in Jiangsu Equity
Exchange Co., Ltd.;
2.
To consider the Resolution on Amendments to the Administrative System
regarding the Shares of the Company Held by Directors, Supervisors and Senior
Management of Huatai Securities Co., Ltd.;
3.
To consider the Resolution on Amendments to the Remuneration Management
System of Huatai Securities Co., Ltd.
All resolutions were
considered and
approved.
Note: Details of relevant announcements on the resolutions of the Board can be found on the website
of the Shanghai Stock Exchange (https://www.sse.com.cn), the HKEXnews website of the HKEX
(https://www.hkexnews.hk) and our Company’s website (https://www.htsc.com.cn) and China Securities
Journal, Shanghai Securities News, Securities Daily as well as Securities Times.
163
VI.
MEETINGS OF THE SUPERVISORY COMMITTEE CONVENED DURING THE
REPORTING PERIOD
Meeting
Convening date
Meeting form and place
Meeting motion
Status
The Sixth Meeting
of the Sixth
Session of the
Supervisory
Committee
March 28, 2024
By means of on-site &
video meetings.
Address: Small Conference
Room, Floor 12, Building
1, Huatai Securities Square,
No. 228 Middle Jiangdong
Road, Nanjing.
1.
To consider the 2023 Work Report of the Supervisory Committee
of the Company;
2.
To consider the Proposal on the 2023 Profit Distribution of the
Company;
3.
To consider the resolution on the 2023 Annual Report of the
Company;
4.
To consider the resolution on the 2023 Annual Internal Control
Evaluation Report of the Company;
5.
To consider the Report on Performance Assessment and
Remuneration of the Supervisors of the Company for 2023;
6.
Debriefing of the Report on Internal Audit of the Company for
2023;
7.
Debriefing of the Internal Audit Work Plan of the Company for
2024.
All resolutions
were
considered
and
approved.
The Seventh
Meeting of the
Sixth Session of
the Supervisory
Committee
April 12, 2024
By means of
teleconference.
1.
To consider the Resolution on Fulfilment of Conditions for Release
from Selling Restriction of the Second Lock-up Period under the
Restricted Share Incentive Scheme of A Shares of the Company;
2.
To consider the Resolution on Repurchase and Cancellation of Part
of the Restricted A Shares by the Company.
All resolutions
were
considered
and
approved.
The Eighth
Meeting of the
Sixth Session of
the Supervisory
Committee
April 29, 2024
By means of on-site &
video meetings.
Address: Small Conference
Room, Floor 12, Building
1, Huatai Securities Square,
No. 228 Middle Jiangdong
Road, Nanjing.
1.
To consider the Resolution on the First Quarterly Report of the
Company for 2024;
2. To consider the Proposal on the Election of a Supervisor of the Sixth
Session of the Supervisory Committee of the Company.
All resolutions
were
considered
and
approved.
The Ninth Meeting
of the Sixth
Session of the
Supervisory
Committee
August 30, 2024
By means of on-site &
video meetings.
Address: Small Conference
Room, Floor 12, Building
1, Huatai Securities Square,
No. 228 Middle Jiangdong
Road, Nanjing.
1.
To consider the Resolution on the 2024 Interim Report of the
Company;
2.
To consider the Resolution on Adjustment to the Repurchase Price
Applicable to the Restricted Share Incentive Scheme of A Shares
of the Company;
3.
To consider the Resolution on Interim Profit Distribution of the
Company for 2024.
All resolutions
were
considered
and
approved.
The Tenth Meeting
of the Sixth
Session of the
Supervisory
Committee
October 30, 2024
By means of on-site
meeting.
Address: Small Conference
Room, Floor 12, Building
1, Huatai Securities Square,
No. 228 Middle Jiangdong
Road, Nanjing.
To consider the Resolution on the Third Quarterly Report of the
Company for 2024.
The resolution
was
considered
and
approved.
Note: Details of relevant announcements on the resolutions of the Supervisory Committee can be found on the
website of the Shanghai Stock Exchange (https://www.sse.com.cn), the HKEXnews website of the HKEX
(https://www.hkexnews.hk) and our Company’s website (https://www.htsc.com.cn) and China Securities
Journal, Shanghai Securities News, Securities Daily as well as Securities Times.
164
VII. PERFORMANCE OF DUTIES OF DIRECTORS
(I)
Attendance of Directors at Board Meetings and General Meetings
Attendance at Board meetings
Attendance
at general
meetings
Name of
Director
Whether
or not
he/she is an
independent
Director
Times of
attendance
at Board
meetings
during
the year
Attendance
in person
Attendance
by means of
teleconference
Attendance
by proxy
Absence
Whether
or not
he/she failed
to attend
the meeting
in person
for two
consecutive
times
Times of
attendance
at general
meetings
Zhang Wei
No
8
8
3
–
–
No
3
Zhou Yi
No
8
8
3
–
–
No
–
Ding Feng
No
8
8
3
–
–
No
3
Chen
Zhongyang
No
8
7
3
1
–
No
–
Ke Xiang
No
8
7
3
1
–
No
3
Liu Changchun
No
8
5
3
3
–
Yes
3
Zhang Jinxin
No
8
8
3
–
–
No
3
Wang Jianwen
Yes
8
7
3
1
–
No
3
Wang
Quansheng
Yes
8
8
3
–
–
No
3
Peng Bing
Yes
8
7
3
1
–
No
3
Wang Bing
Yes
8
5
3
3
–
No
3
Lo Kin Wing
Terry
Yes
4
4
2
–
–
No
–
Yin Lihong
(resigned)
No
8
7
3
1
–
No
3
Tse Yung Hoi
(resigned)
Yes
4
4
1
–
–
No
3
Number of Board meetings held within the year
8
Of which: Number of on-site meetings
–
Number of meetings held by teleconference
3
Number of meetings held on-site and via teleconference
5
Note: During the Reporting Period, Mr. Liu Changchun failed to attend the Board meetings in person
for two consecutive times due to business engagement but appointed other Directors in writing to
exercise the voting rights on his behalf.
165
(II)
No Objections Raised by Directors to Relevant Matters of the Company During the
Reporting Period
(III) Others
1.
Board of Directors and the Operation Management
(1)
Composition of the Board
According to the relevant regulations of the Articles of Association, the
Board shall be composed of 13 Directors, with the number of independent
Directors accounting for at least 1/3 of the total number. On December 30,
2022, as elected at the 2022 First Extraordinary General Meeting of the
Company, and according to the election by the congress of workers and
staff of the Company, the Company formed the sixth session of the Board.
As of the end of the Reporting Period, there were 13 members in the Board,
including 3 executive Directors (Mr. Zhang Wei, Mr. Zhou Yi, Ms. Yin
Lihong), 5 non-executive Directors (Mr. Ding Feng, Mr. Chen Zhongyang,
Mr. Ke Xiang, Mr. Liu Changchun, Mr. Zhang Jinxin) and 5 independent
non-executive Directors (Mr. Wang Jianwen, Mr. Wang Quansheng, Mr.
Peng Bing, Mr. Wang Bing, Mr. Lo Kin Wing Terry).
The Directors are elected or changed via the general meeting and shall
formally take office from the date on which their appointments are approved
by the general meeting. A Director shall serve a term of three years.
Directors are eligible for re-election upon the expiration of their terms.
However, the successive terms of independent non-executive Directors may
not be more than 6 years. According to relevant regulations of Rule 3.13 of
the Hong Kong Listing Rules, the Company has received the annual written
confirmation from each independent non-executive Director with regards
to his/her independence. Based on these confirmations and the relevant
information available to the Board, the Company continues to confirm their
independence.
The Company covered liability insurance for Directors, Supervisors and
senior management and other related staff held responsible according to the
authorization of the 2014 Annual General Meeting, to protect them from
the compensation liabilities that may arise from performing their duties and
to reasonably avoid management risk and legal risk which the Directors,
Supervisors and senior management may be exposed to, and to encourage
them to earnestly fulfill their duties and responsibilities.
166
(2)
Duties and Responsibilities of the Board
The Board is the decision-making body of the Company and is accountable
to the general meeting. According to the Articles of Association, the Board
shall exercise the following major functions and powers: to convene general
meetings and report work to general meetings; to carry out the resolutions
of the general meetings; to resolve on the business & investment plans of
the Company; to prepare annual financial budget plan and final accounting
plan of the Company; to prepare profit distribution plan and loss remedy
plan of the Company; to formulate proposals of the Company on increasing
or decreasing the registered capital, issuing bonds or other securities and
the listing plan; to formulate plans for material acquisition, purchase of
shares of the Company, merger, division, dissolution or transformation of the
Company; to determine, within the authority granted by the general meeting,
such matters as external investment, acquisition and disposal of assets, asset
mortgage, external guarantee, entrusted wealth management, related-party
transactions, external donations, etc.; to decide on the establishment of the
Company’s internal management organizations; to determine the appointment
or dismissal of the chief executive officer, secretary to the Board and other
senior management of the Company, and to decide the matters on their
remuneration and rewards as well as penalties; to determine the appointment
or dismissal of the senior management of the Company including member of
Executive Committee, chief financial officer, chief compliance officer, chief
risk officer and chief information officer according to the nominations by
the president, and to decide the matters on their remuneration and rewards as
well as penalties; to set up the basic management system of the Company; to
formulate the proposals for any amendment to the Articles of Association;
to manage the Company’s information disclosure; to be responsible for the
strategic decision of the objectives and planning of cultural construction,
and direct the Company to strengthen its cultural construction; to propose to
the general meeting the appointment or replacement of the accounting firms
which provide audit services for the Company; to listen to the work reports
of the Executive Committee and review its work; to decide the Company’s
compliance management objectives and assume the responsibility for the
effectiveness of compliance management, including but not limited to:
considering and approving the basic system for compliance management and
the annual compliance report, evaluating the effectiveness of compliance
management, urging to solve problems in compliance management,
establishing the mechanism for direct communication with the chief
compliance officer, guaranteeing the chief compliance officer’s assessment
on the senior management, various departments and branches, subsidiaries at
all levels, Compliance Department and compliance management personnel;
to formulate the risk control system of the Company; to determine Directors’
remunerations and distribution plan thereof; to decide to purchase Company’s
shares due to the circumstances specified in the Articles of Association; and
to exercise other functions and powers authorized by laws, administrative
regulations, departmental rules or the Articles of Association.
167
(3)
Duties and Responsibilities of the Operation Management
The Operation Management is responsible for the concrete implementation
of the development strategies and policies passed by the Board as well
as the daily operation and management of the Company. The Operation
Management is the supreme operation management body established by
the Company for implementation of the routes and policies determined by
the Board, and shall exercise the following functions and powers according
to the Articles of Association: to carry out Company’s operation policies
determined by the Board and decide on material matters during the operation
and management of the Company; to formulate and implement the financial
budget plan of the Company; to formulate final accounting plan, profit
distribution plan and loss remedy plan of the Company; to formulate the
registered capital change plans and bonds insurance plans of the Company;
to formulate plans for merger, division, change and dissolution of the
Company; to formulate Company’s business plans and plans for investment,
financing and disposal of assets, and report to the Board for approval
according to authorization; to formulate Company’s plan for establishment
of internal management bodies; to deploy and implement various works for
cultural construction; to prepare and approve the employee benefits plans and
promotion and demotion plans; and to exercise other functions and powers
authorized by the Board.
(4)
Implementation by the Board of Resolutions Passed at General Meetings
1)
On February 8, 2021, the Resolution on General Mandate for
Domestic and Overseas Debt Financing Instruments of the Company
was considered and approved at the Company’s first extraordinary
general meeting of 2021. According to the resolution, after being
approved by Approval for the Registration of Public Issuance of
Perpetual Subordinated Corporate Bonds by Huatai Securities Co.,
Ltd. to Professional Investors (Zheng Jian Xu Ke [2023] No. 1537)
of the CSRC, the Company publicly issued one tranche of perpetual
subordinated corporate bonds totaling RMB2.6 billion during the
Reporting Period.
2)
On February 8, 2021, the Resolution on General Mandate for Domestic
and Overseas Debt Financing Instruments of the Company was
considered and approved at the Company’s first extraordinary general
meeting of 2021. According to the resolution, after being approved
by Approval for the Registration of Public Issuance of Short-term
Corporate Bonds by Huatai Securities Co., Ltd. to Professional
Investors (Zheng Jian Xu Ke [2023] No. 414) of the CSRC, the
Company publicly issued four tranches of short-term corporate bonds
totaling RMB16.8 billion during the Reporting Period.
168
3)
On November 24, 2023, the Resolution on the Cancellation of the
Repurchased A Shares and Reduction of Registered Capital by the
Company was considered and approved at the Company’s second
extraordinary general meeting of 2023, third A Share class meeting
of 2023 and third H Share class meeting of 2023. According to the
resolution, during the Reporting Period, the Company completed the
cancellation of 45,278,495 repurchased A Shares.
4)
On June 20, 2024, the Resolution on Repurchase and Cancellation
of Part of the Restricted A Shares by the Company was considered
and approved at the Company’s 2023 Annual General Meeting, 2024
First A Share Class Meeting and 2024 First H Share Class Meeting.
According to the resolution, during the Reporting Period, the Company
completed the repurchase and cancellation of 2,082,559 restricted A
Shares.
5)
On June 20, 2024, the Resolution on the 2023 Profit Distribution Plan
of the Company was considered and approved at the 2023 Annual
General Meeting of the Company. According to the resolution, during
the Reporting Period, the 2023 profit distribution of the Company was
made by way of cash dividends, and the Company distributed cash
dividend of RMB0.43 (tax inclusive) per share based on the Company’s
total share capital of 9,029,384,840 shares prior to the implementation
of the plan, with the total cash dividend of RMB3,882,635,481.20 (tax
inclusive). During the Reporting Period, the profit distribution plan has
been completed.
6)
On June 20, 2024, the Resolution on Proposal to the General Meeting
to Authorize the Board to Decide on the Interim Profit Distribution for
2024 was considered and approved at the 2023 Annual General Meeting
of the Company. According to the resolution, during the Reporting
Period, the Resolution on Interim Profit Distribution of the Company
for 2024 was considered and approved at the twelfth meeting of the
sixth session of the Board of the Company, pursuant to which the 2024
interim profit distribution of the Company was made by way of cash
dividends, and the Company distributed cash dividend of RMB0.15
(tax inclusive) per share based on the Company’s total share capital of
9,027,302,281 shares prior to the implementation of the plan, with the
total cash dividend of RMB1,354,095,342.15 (tax inclusive). During
the Reporting Period, the profit distribution plan has been completed.
169
7)
On June 20, 2024, the Resolution on the Estimated Ordinary
Transactions with Related Parties of the Company for 2024 was
considered and approved at the Company’s 2023 Annual General
Meeting. For details of the actual performance of ordinary transactions
with related parties of the Company during the Reporting Period
according to the resolution, please refer to “Major Related-party
Transactions” under “Major Events” in this report.
8)
On June 20, 2024, the Resolution on the Estimated Investment Amount
of the Company’s Proprietary Business for 2024 was considered and
approved at the Company’s 2023 Annual General Meeting. According
to the resolution, during the Reporting Period, related business
indicators of the Company were controlled within the authorized scope
of the shareholders’ general meeting.
9)
On June 20, 2024, the Resolution on the Re-appointment of the
Accounting Firms of the Company was considered and approved at the
Company’s 2023 Annual General Meeting. According to the resolution,
during the Reporting Period, the Company appointed Deloitte Touche
Tohmatsu Certified Public Accountants LLP to handle 2024 annual
financial statements and internal control auditing services for the
Company and its holding subsidiaries, and to issue the audit report of A
shares, internal control audit report and GDR audit report; the Company
also appointed Deloitte Touche Tohmatsu for auditing services of H
Shares for the Company, and to issue the audit report of H Shares.
(5)
Training of Directors
The Company attaches great importance to the ongoing training of Directors,
to ensure that the Directors form an appropriate understanding of the
operation of the Company and its business and they understand their duties
and responsibilities as directors as required by the CSRC, the Shanghai Stock
Exchange, the Hong Kong Stock Exchange, and as stipulated in the Articles
of Association and other relevant laws and regulatory requirements. During
the Reporting Period, the Company’s Directors attached great importance
to updating professional knowledge and skills, to adapt to the needs of the
development of the Company. In addition to participation in regular trainings
held by regulatory organizations and self-regulatory organizations and
complete required ongoing trainings, the Office of the Board also prepared
the Work Newsletter of the Company regularly and sent it to the Directors to
enable them to understand the latest policies and regulations and industrial
trends and enhance their knowledge and understanding of the culture and
operation of the Company. In addition, the Company continuously improved
the internal work procedures, established the multi-level information
communication mechanism, and set up the information communication
platform, in order to ensure the access to information for Directors to
perform their duties and constantly improve their overall performance
capability.
170
During the Reporting Period, the main trainings of the Directors of the
Company were as follows:
Director Name
Date
Organizer
Content
Training Location
Zhang Wei
2024-4-22
Organization
Department of
Jiangsu Provincial
Committee of the
CPC
Online special session on “Improvement
of Technological Innovation
Mechanism for Enterprises”
Nanjing, Jiangsu
2024-5-24
China Capital Market
Institute
Exchange training on FINTECH
innovation in the capital market
Nanjing, Jiangsu
2024-11-11
Securities Association
of China
Interpretation of the Measures for
the Administration of Cybersecurity
and Information Security in
the Securities and Futures Industries
Nanjing, Jiangsu
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Nanjing, Jiangsu
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Nanjing, Jiangsu
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Nanjing, Jiangsu
Zhou Yi
2024-5-27
Clifford Chance
HKEX’s Enforcement Bulletin
Nanjing, Jiangsu
2024-8-29
Clifford Chance
Introduction to latest regulatory laws
in the Hong Kong capital market
Nanjing, Jiangsu
2024-10-30
Securities Association
of China
Interpretation of the Measures for
the Administration of Cybersecurity
and Information Security in
the Securities and Futures Industries
Nanjing, Jiangsu
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Nanjing, Jiangsu
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Nanjing, Jiangsu
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Nanjing, Jiangsu
Ding Feng
2024-5-27
Clifford Chance
HKEX’s Enforcement Bulletin
Nanjing, Jiangsu
2024-8-29
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-6
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Nanjing, Jiangsu
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Nanjing, Jiangsu
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Nanjing, Jiangsu
171
Director Name
Date
Organizer
Content
Training Location
Chen Zhongyang
2024-5-27
Clifford Chance
HKEX’s Enforcement Bulletin
Nanjing, Jiangsu
2024-8-29
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-6
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Nanjing, Jiangsu
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Nanjing, Jiangsu
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Nanjing, Jiangsu
Ke Xiang
2024-5-27
Clifford Chance
HKEX’s Enforcement Bulletin
Nanjing, Jiangsu
2024-8-29
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-6
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Nanjing, Jiangsu
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Nanjing, Jiangsu
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Nanjing, Jiangsu
Liu Changchun
2024-5-27
Clifford Chance
HKEX’s Enforcement Bulletin
Nanjing, Jiangsu
2024-8-29
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-6
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Nanjing, Jiangsu
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Nanjing, Jiangsu
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Nanjing, Jiangsu
172
Director Name
Date
Organizer
Content
Training Location
Zhang Jinxin
2024-5-27
Clifford Chance
HKEX’s Enforcement Bulletin
Beijing
2024-8-29
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Beijing
2024-11-6
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Beijing
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Beijing
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Beijing
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Beijing
Wang Jianwen
2024-1-26
China Association for
Public Companies
Training on capacity building of
independent directors
Nanjing, Jiangsu
2024-4-3
China Association for
Public Companies
Implementation cases of new rules for
independent directors and tips for their
performance of duties
Nanjing, Jiangsu
2024-5-27
Clifford Chance
HKEX’s Enforcement Bulletin
Nanjing, Jiangsu
2024-8-29
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-6
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Nanjing, Jiangsu
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Nanjing, Jiangsu
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Nanjing, Jiangsu
Wang Quansheng
2024-1-26
China Association for
Public Companies
Training on capacity building of
independent directors
Nanjing, Jiangsu
2024-4-3
China Association for
Public Companies
Implementation cases of new rules for
independent directors and tips for their
performance of duties
Nanjing, Jiangsu
2024-5-27
Clifford Chance
HKEX’s Enforcement Bulletin
Nanjing, Jiangsu
2024-7-31 to
2024-8-1
Shanghai Stock
Exchange
2024 third phase follow-up training for
independent directors of listed companies
Beijing
2024-8-29
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-6
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Nanjing, Jiangsu
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Nanjing, Jiangsu
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Nanjing, Jiangsu
173
Director Name
Date
Organizer
Content
Training Location
Peng Bing
2024-1-26
China Association for
Public Companies
Training on capacity building of
independent directors
Beijing
2024-4-3
China Association for
Public Companies
Implementation cases of new rules for
independent directors and tips for their
performance of duties
Beijing
2024-5-27
Clifford Chance
HKEX’s Enforcement Bulletin
Beijing
2024-7-31 to
2024-8-1
Shanghai Stock
Exchange
2024 third phase follow-up training for
independent directors of listed companies
Beijing
2024-8-29
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Beijing
2024-11-6
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Beijing
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Beijing
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Beijing
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Beijing
Wang Bing
2024-1-26
China Association for
Public Companies
Training on capacity building of
independent directors
Nanjing, Jiangsu
2024-4-3
China Association for
Public Companies
Implementation cases of new rules for
independent directors and tips for their
performance of duties
Nanjing, Jiangsu
2024-5-27
Clifford Chance
HKEX’s Enforcement Bulletin
Nanjing, Jiangsu
2024-7-31 to
2024-8-1
Shanghai Stock
Exchange
2024 third phase follow-up training for
independent directors of listed companies
Beijing
2024-8-29
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-6
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Nanjing, Jiangsu
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Nanjing, Jiangsu
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Nanjing, Jiangsu
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Nanjing, Jiangsu
174
Director Name
Date
Organizer
Content
Training Location
Lo Kin Wing
2024-4-15 to
2024-4-19
Shanghai Stock
Exchange
Training on performance of duties of
Independent Directors
Hong Kong
2024-6-20
Clifford Chance
Memorandum on directors’ responsibilities
under Hong Kong Laws and Regulations
Hong Kong
Memorandum in relation to related-party
transactions and notifiable transactions
2024-8-29
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Hong Kong
2024-11-6
Clifford Chance
Introduction to latest regulatory laws in
the Hong Kong capital market
Hong Kong
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Hong Kong
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Hong Kong
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Hong Kong
Yin Lihong
2024-11-25 to
2024-12-3
China Association for
Public Companies
Special training on “Typical Cases
Analysis of Violations of Laws and
Regulations of Listed Companies”
Nanjing, Jiangsu
2024-12-26
Huatai Securities Co.,
Ltd.
Anti-corruption training
Nanjing, Jiangsu
2024-12-30
Huatai Securities Co.,
Ltd.
Highlights of amendments to the new
Anti-Money Laundering Law
Nanjing, Jiangsu
Tse Yung Hoi
2024-1-26
China Association for
Public Companies
Training on capacity building of
independent directors
Hong Kong
2024-4-3
China Association for
Public Companies
Implementation cases of new rules for
independent directors and tips for their
performance of duties
Hong Kong
2024-5-27
Clifford Chance
HKEX’s Enforcement Bulletin
Hong Kong
2.
Chairman and Chief Executive Officer
Chairman and Chief Executive Officer are two different positions, and according
to the provisions of the Articles of Association, the chairman is the legal
representative of the Company, responsible for managing the operations of the
Board, ensuring that the Board acts in compliance with the best interests of the
Company, ensuring the effective operation of the Board, ensuring that the Board
has fulfilled its due duties and discussions about all significant and appropriate
matters are held so that Directors get accurate, timely and explicit data. Chief
Executive Officer manages the daily work of the Company, attends Board
meetings, reports to the Board and exercises the functions and powers according
to the responsibility scope of the Chief Executive Officer.
175
According to provisions of Rule C.2.1 of Corporate Governance Code, the roles
of the chairman of the board and chief executive shall be separate and should not
be performed by the same individual at the same time. On December 30, 2022,
at the first meeting of the sixth session of the Board, the Company elected Mr.
Zhang Wei as the chairman of the sixth session of the Board and continued to hire
Mr. Zhou Yi as the Chief Executive Officer and the Chairman of the Executive
Committee of the Company. The Board thinks that this management structure is
effective and has enough checks and balances for the Company’s operation.
3.
Non-executive Directors
As of the end of the Reporting Period, the Company has 5 non-executive Directors
and 5 independent non-executive Directors. For details of their terms of office,
please refer to “Changes in shareholding structure and remuneration of current
and resigned Directors, Supervisors and senior management during the Reporting
Period” under “Directors, Supervisors and senior management” under “Corporate
Governance” in this report.
4.
Performance of Duties by Independent Non-executive Directors
(1)
Works regarding periodic reports
In the annual report compilation process, all independent non-executive
Directors of the Company have performed full duties according to the
requirements of the CSRC and the provisions of the Working System for
Independent Directors of the Company.
On January 18, 2024, at the first meeting of the Audit Committee of the
sixth session of the Board of the Company for 2024, the Audit Committee
listened to the report of annual audit work arrangement of A+H+G Share and
pre-audit work for 2023 of the Company made by relevant personnel from
Deloitte, and made discussion and communication with relevant personnel
from Deloitte. Two out of the three members in the Audit Committee
are independent non-executive Directors, who put forward opinions and
suggestions to the supplement and perfection of the Auditing Plan of the
Company for 2023 from different perspectives in their roles as members of
the Audit Committee and as independent non-executive Directors.
On February 28, 2024, at the second meeting of the Audit Committee of the
sixth session of the Board for 2024, the Audit Committee considered and
approved the Resolution on the Auditing Plan of the Company for 2023.
Two out of the three members in the Audit Committee are independent
non-executive Directors, who examined the Auditing Plan of the Company
for 2023 from different perspectives in their roles as members of the Audit
Committee and as independent non-executive Directors.
176
On March 26, 2024, at the third meeting of the Audit Committee of the
sixth session of the Board for 2024, the Audit Committee examined the
Company’s Annual Financial Statement in 2023, Annual Report in 2023 and
its Summary, Annual Internal Control Evaluation Report in 2023, Report
on Performance of Duties by the Audit Committee of the Board in 2023,
the Report on Performance of Supervisory Duties by the Annual Audit
Accounting Firm for 2023 of the Audit Committee of the Board and Internal
Audit Work Plan in 2024, etc., reviewed the “Key Audit Matters” and other
important issues involved in the Company’s 2023 Annual Audit Report, and
listened to the report on the internal audit work of the Company in 2023.
Two out of the three members in the Audit Committee are independent
non-executive Directors, who examined relevant resolutions and gave
opinions from different perspectives in their roles as members of the Audit
Committee and as independent non-executive Directors.
On July 29, 2024, at the sixth meeting of the Audit Committee of the sixth
session of the Board for 2024, the Audit Committee listened to the report
on the review of 2024 interim financial statements of the Company’s H+G
Shares and the audit plan of the Company’s 2024 A+H+G Share annual
report made by relevant personnel from Deloitte, and made discussion
and communication with relevant personnel from Deloitte. Two out of
the three members in the Audit Committee are independent non-executive
Directors, who made discussions, exchanged views and made comments
and suggestions from different perspectives in their roles as members of the
Audit Committee and as independent non-executive Directors.
(2)
Consideration on related-party transactions
On March 26, 2024, the first meeting of the special meetings of independent
Directors of the sixth session of the Board of the Company for 2024 and the
third meeting of the audit committee of the sixth session of the Board of the
Company for 2024 considered and approved the Proposal on the Estimated
Ordinary Transactions with Related Parties of the Company for 2024,
respectively. The relevant transactions with related parties were fair, the
transaction prices of which were determined with adherence to the market
pricing principle without prejudice to the interests of the Company; the
relevant related-party transactions were all derived in the ordinary operation
of the Company and would help carry out the businesses of the Company
and bring certain income to the Company; the procedures for approval for
relevant related-party transactions complied with relevant laws, regulations
and normative documents as well as the Articles of Association and the
Management System for Related-party Transactions of the Company.
177
(3)
Other performance of duties
On March 26, 2024, the first meeting of the special meetings of independent
Directors of the sixth session of the Board of the Company for 2024
also considered and approved the Report on Performance of Duties of
the Independent Directors of the Company for 2023 and the Report on
Independence Self-examination by the Independent Directors of the
Company.
VIII.
SPECIAL COMMITTEES UNDER THE BOARD
(I)
Members of the special committees of the Board
Five special committees, namely, Development Strategy Committee, Compliance
and Risk Management Committee, Audit Committee, Nomination Committee and
Remuneration and Appraisal Committee were established under the Board, members of
which as of the end of the Reporting Period were as follows:
The Development Strategy Committee (a total of five members): Zhang Wei, Zhou Yi,
Chen Zhongyang, Liu Changchun and Zhang Jinxin and Mr. Zhang Wei is the chairman
(convener) of the Development Strategy Committee;
The Compliance and Risk Management Committee (a total of three members): Zhou
Yi, Ke Xiang and Wang Jianwen and Mr. Zhou Yi is the chairman (convener) of the
Compliance and Risk Management Committee;
The Audit Committee (a total of three members with the independent non-executive
Directors accounting for more than 1/2): Wang Bing, Ding Feng and Lo Kin Wing
Terry and Mr. Wang Bing is the chairman (convener) of the Audit Committee;
The Nomination Committee (a total of three members with the independent
non-executive Directors accounting for more than 1/2): Wang Quansheng, Yin Lihong
and Peng Bing and Mr. Wang Quansheng is the chairman (convener) of the Nomination
Committee;
The Remuneration and Appraisal Committee (a total of three members, all are
independent non-executive Directors): Wang Quansheng, Peng Bing and Wang Bing and
Mr. Wang Quansheng is the chairman (convener) of the Remuneration and Appraisal
Committee.
178
(II)
Performance of duties by the special committees of the Board
1.
Development Strategy Committee of the Board
The major duties of the Development Strategy Committee of the Board include:
1. Understanding and grasping the overall situation of the Company’s operation;
2. Understanding, analyzing and grasping the current situation of international
and domestic industries; 3. Understanding and grasping the relevant domestic
policies; 4. Studying the short-term, medium-term and long-term development
strategies of the Company or relevant issues; 5. Providing consultancy advice on
the Company’s long-term development strategies, major investments, reforms
and other major decisions, and promoting the deep integration of the Company’s
cultural concept and the Company’s development strategies; 6. Considering and
approving the special research reports on development strategies; 7. Publishing
daily research reports in a regular or irregular manner; 8. Other duties assigned by
the Board.
During the Reporting Period, the Development Strategy Committee of the Board
convened a total of two meetings, the details of which were as follows:
Meeting name
Convening date
Meeting contents
Important comments
and suggestions
Other conditions
on execution of duty
The first meeting of the
Development Strategy
Committee of the sixth
session of the Board for
2024
March 27, 2024
To consider the 2023 Work
Report of the Senior
Management of the
Company.
The Development Strategy
Committee considered
and approved the
resolution at the
meeting.
The meeting was
convened by way of
teleconference.
The second meeting of the
Development Strategy
Committee of the sixth
session of the Board for
2024
June 3, 2024
To consider the Resolution
on the 2023 Report on
the Implementation of
Construction of Corporate
Culture.
The Development Strategy
Committee considered
and approved the
resolution at the
meeting.
The meeting was
convened by way of
teleconference.
Attendance of members of the Development Strategy Committee at the meetings
held during the Reporting Period was as follows:
Name
Attendance in person/
Number of meetings
requiring attendance
Zhang Wei
2/2
Zhou Yi
2/2
Chen Zhongyang
2/2
Liu Changchun
2/2
Zhang Jinxin
2/2
179
2.
Compliance and Risk Management Committee of the Board
The main duties of the Compliance and Risk Management Committee of the
Board include: 1. Reviewing and making recommendations on the overall targets
and fundamental policies of compliance management and risk management; 2.
Reviewing and making recommendations on the setup of compliance management
and risk management bodies and their duties; 3. Evaluating and making
recommendations on the risks of major decisions which require the Board’s review
as well as the solutions to these risks; 4. Reviewing and making recommendations
on the compliance reports and risk assessment reports that require the Board’s
review; 5. Other duties prescribed in the Articles of Association.
During the Reporting Period, the Compliance and Risk Management Committee of
the Board convened three meetings, the details of which were as follows:
Meeting name
Convening date
Meeting content
Important comments
and suggestions
Other conditions on
execution of duty
The first meeting of the
Compliance and Risk
Management Committee of the
sixth session of the Board for
2024
March 27, 2024
1. To consider and approve
the Resolution on the
Annual Compliance
Report of the Company
in 2023;
2. To consider and
approve the Resolution
on the Annual Risk
Management Report of
the Company in 2023;
3. To consider and approve
the Resolution on the
2023 Annual Internal
Control Evaluation
Report of the Company;
4. To consider and approve
the Resolution on
Amendments to the
Administrative Measures
for System Construction
of Huatai Securities Co.,
Ltd.
The Compliance and
Risk Management
Committee considered
and approved the
resolutions at the
meeting.
The meeting was
convened by way of
teleconference.
The second meeting of the
Compliance and Risk
Management Committee of the
sixth session of the Board for
2024
August 29, 2024
To consider and approve
the Resolution on
the 2024 Interim
Compliance Report of
the Company.
The Compliance and
Risk Management
Committee considered
and approved the
resolutions at the
meeting.
The meeting was
convened by way of
teleconference.
The third meeting of the
Compliance and Risk
Management Committee of the
sixth session of the Board for
2024
October 29, 2024
To consider and approve
the Resolution on
Amendments to the
Basic System for Anti-
Money Laundering
and Anti-Terrorism
Financing of Huatai
Securities Co., Ltd.
The Compliance and
Risk Management
Committee considered
and approved the
resolutions at the
meeting.
The meeting was
convened by way of
teleconference.
180
Attendance of members of the Compliance and Risk Management Committee at
the meetings held during the Reporting Period was as follows:
Name
Attendance in person/
Number of meetings
requiring attendance
Zhou Yi
3/3
Ke Xiang
3/3
Wang Jianwen
3/3
3.
Audit Committee of the Board
The main duties of the Audit Committee of the Board include: 1. Supervising
and guiding the audit work. It shall manage and guide the internal audit
work planning and audit team construction, regularly listen to and review the
comprehensive report of audit work, annual audit plan and important audit reports,
make judgements on the truthfulness, accuracy and completeness of the audited
financial report, and submit them to the Board for reviewing. It shall supervise
the Company’s financial statement and the completeness of the Company’s annual
report and account, interim report and quarterly report and review statements as
well as major opinions on financial declaration in reports. The Committee shall pay
special attention to the following matters:
①
Changes in accounting policies and
practices;
②
Matters concerning significant judgment;
③
Significant adjustments
due to the audit;
④
Assumptions of on-going operations of the Company and
its qualified opinions;
⑤
Compliance with the accounting standards; and
⑥
Compliance with the listing rules or relevant laws and regulations of the listing
place where the financial reporting shall be made; 2. Proposing the engagement or
changing of external audit institutions and supervising the professional conduct of
external audit institutions, so as to ensure the coordination of internal and external
auditors. Moreover, it shall also ensure that the internal audit institution is given
enough resources for operation and appropriate status within the Company and
check and supervise its validity; 3. Considering and putting forward suggestions
for the appointment, reappointment, remuneration, appointment terms and any
other issues about the resignation or dismissal of external auditors. It shall hold the
position as the main representative between the Company and the external auditor
and supervise their relationship; 4. Discussing with the external auditors about the
nature, scope and relevant responsibility of audit and frequently check if the audit
procedure is valid and whether the external auditor is objective and independent
before carrying out the audit work; 5. Checking the Explanation Letter on Audit
offered by external auditors to the management and any major doubts put forward
by the auditors to the management about the accounting record, financial account
or monitoring system as well as the response of the management and ensure that
the Board can timely reply to issues put forward in the Explanation Letter on
Audit offered by external auditors to the management; 6. Checking and monitoring
the Company’s financial supervision, risk management and internal monitoring
system and check the financial and accounting policies and practices of the
Company and its subsidiaries; 7. Discussing the risk management and internal
supervision system with the management so as to ensure that the management has
performed its duty and established a valid internal supervision system; studying
the important investigation results and responses of the management related to
risk management and internal supervision system actively or as assigned by the
181
Board of Directors; 8. Reporting the above issues to the Board; 9. Checking the
Company’s following arrangement: Employees of the Company may secretly raise
concerns on irregular conducts about financial reporting, internal monitoring,
or other aspects. The Audit Committee shall ensure that there is appropriate
arrangement for the Company to make fair and independent investigation and take
appropriate actions on such issues; 10. Studying other projects defined by the
Board; 11. Other responsibilities according to the Articles of Association or the
Listing rules or laws and regulations of the place where the Company is listed.
During the Reporting Period, the Audit Committee of the Board convened eight
meetings in total, the details of which were as follows:
Meeting name
Convening date
Meeting contents
Important comments
and suggestions
Other conditions
on execution of duty
The first meeting of the Audit
Committee of the sixth
session of the Board for
2024
January 18, 2024
To listen to the report of annual
audit work arrangement
of A+H+G Share and pre-
audit work for 2023 of the
Company made by relevant
personnel from Deloitte,
and to make discussion and
communication with relevant
personnel from Deloitte.
The Audit Committee
listened to the report,
and also suggested that
the audit work should
focus on the valuation
under the changing
circumstances of
different capital markets.
The meeting was
convened by way
of on-site & video
meetings.
The second meeting of the
Audit Committee of the
sixth session of the Board
for 2024
February 28, 2024
To consider and approve the
Resolution on the Auditing
Plan of the Company for
2023.
The Audit Committee
considered and approved
the resolution at the
meeting.
The meeting was
convened by way of
teleconference.
182
Meeting name
Convening date
Meeting contents
Important comments
and suggestions
Other conditions
on execution of duty
The third meeting of the
Audit Committee of the
sixth session of the Board
for 2024
March 26, 2024
1.
To consider the Final
Financial Report of the
Company for 2023;
2.
To consider the Financial
Budget Report of the
Company for 2024;
3.
To consider the Proposal on
the Profit Distribution of the
Company for 2023;
4.
To consider the Resolution
on the Annual Financial
Statements of the Company
for 2023;
5.
To consider the Proposal
on the Annual Report of the
Company for 2023 and its
Summary;
6.
To consider the Resolution
on the Internal Control
Assessment Report of the
Company for 2023;
7.
To consider the Proposal
on the Estimated Ordinary
Transactions with Related
Parties of the Company for
2024;
8.
To consider the Proposal
on the Re-appointment of
the Accounting Firms of the
Company;
9.
To consider the Report on
Performance of Duties of
Audit Committee under the
Board of the Company for
2023;
10. To consider the Evaluation
Report on Performance of
Duties by the Annual Audit
Accounting Firm for 2023 of
the Company;
11. To consider the Report on
Performance of Supervisory
Duties by the Annual Audit
Accounting Firm for 2023 of
the Audit Committee of the
Board of the Company;
The Audit Committee
considered and approved
the resolutions at the
meeting, and also
suggested to strengthen
the digitalization of the
audit work.
The meeting was
convened by
way of on-site &
video meetings.
Members of the
Audit Committee
considered and
listened to the
report on the
operations and
financial situation
of the Company
for 2023 and
communicated with
senior management
of the Company and
staff from Deloitte.
183
Meeting name
Convening date
Meeting contents
Important comments
and suggestions
Other conditions
on execution of duty
12. To consider the Special
Audit Report on Related
Party Transactions of the
Company for 2023;
13. To consider the Special
Audit Report on the Use
of Proceeds, Provision of
Guarantees and Related-
party Transactions and
Other Major Events of the
Company in 2023;
14. To consider the Report on
Internal Audit of Anti-money
Laundering of the Company
for 2023;
15. To consider the Work Plan
for the Internal Audit of the
Company for 2024;
16. To review the Important
Matters Involved in the “Key
Audit Matters” as Set Out in
the Annual Audit Report of
the Company for 2023;
17. Debriefing the Report
on Internal Audit of the
Company for 2023.
The fourth meeting of the
Audit Committee of the
sixth session of the Board
for 2024
April 26, 2024
1.
To consider the Resolution
on the Financial Statements
for January to March 2024 of
the Company;
2.
To consider the Resolution
on Proposal to the General
Meeting to Authorize the
Board to Decide on the
Interim Profit Distribution
for 2024.
The Audit Committee
considered and approved
the resolutions at the
meeting.
The meeting was
convened by way
of on-site & video
meetings.
The fifth meeting of the Audit
Committee of the sixth
session of the Board for
2024
June 19, 2024
To consider and approve
the Resolution on the
Formulation of the Internal
Audit Management System
of Huatai Securities Co., Ltd.
The Audit Committee
considered and approved
the resolution at the
meeting.
The meeting was
convened by way of
teleconference.
184
Meeting name
Convening date
Meeting contents
Important comments
and suggestions
Other conditions
on execution of duty
The sixth meeting of the
Audit Committee of the
sixth session of the Board
for 2024
July 29, 2024
To listen to the report on the
review of 2024 interim
financial statements of the
Company’s H+G Share and
the Company’s 2024 A+H+G
Share annual audit plan made
by relevant personnel from
Deloitte, and to discuss and
communicate with relevant
personnel from Deloitte.
The Audit Committee
listened to the report,
and also suggested to pay
attention to the internal
control of new business
changes during the
Reporting Period. Staff
from Deloitte advised
that precautionary
measures had been put in
place.
The meeting was
convened by way
of on-site & video
meetings.
185
Meeting name
Convening date
Meeting contents
Important comments
and suggestions
Other conditions
on execution of duty
The seventh meeting of the
Audit Committee of the
sixth session of the Board
for 2024
August 28, 2024
1.
To consider and approve the
Resolution on the Financial
Statement of the Company in
the First Half of 2024;
2.
To consider and approve the
Resolution on Interim Report
of the Company in 2024;
3.
To consider and approve the
Resolution on Interim Profit
Distribution of the Company
for 2024;
4.
To consider and approve the
Special Audit Report on the
Use of Proceeds, Provision
of Guarantees and Related-
party Transactions and
Other Major Events of the
Company in the First Half of
2024.
The Audit Committee
considered and approved
the resolutions at the
meeting.
The meeting was
convened by
way of on-site &
video meetings.
Members of the
Audit Committee
considered and
listened to the
report on the
operations and
financial situation
of the Company
for the first half-
year of 2024 and
communicated with
senior management
of the Company and
staff from Deloitte.
The eighth meeting of the
Audit Committee of the
sixth session of the Board
for 2024
October 29, 2024
To consider and approve the
Resolution on the Financial
Statements for January to
September of 2024 of the
Company.
The Audit Committee
considered and approved
the resolution at the
meeting.
The meeting was
convened by way of
teleconference.
Attendance of the members of the Audit Committee at the meetings held during
the Reporting Period was as follows:
Name
Attendance in person/
Number of meetings
requiring attendance
Wang Bing
8/8
Ding Feng
8/8
Lo Kin Wing Terry
3/3
Tse Yung Hoi
5/5
Note: On June 30, 2024, the eleventh meeting of the sixth session of the Board considered and
approved the Resolution on the Adjustment to the Composition Plan of Certain Special
Committees of the Sixth Session of the Board of the Company, where the members of the
Audit Committee were adjusted to be Mr. Wang Bing, Mr. Ding Feng and Mr. Lo Kin Wing
Terry, and Mr. Wang Bing is the chairman (convener) of the Audit Committee.
186
4.
Nomination Committee of the Board
The main duties of the Nomination Committee of the Board include: 1. Reviewing
the structure, headcount and composition (including skills, knowledge and
experience) of the Board at least once each year and making recommendations
regarding any proposed changes in the Board in line with the Company’s
strategies; 2. Considering and making suggestions on the criteria and procedures
for the selection of Directors and senior management members; 3. Searching for
qualified candidates for Director and senior management, and selecting from
the list of candidates nominated by Directors or making recommendations to the
Board; 4. Reviewing and making suggestions on the qualification requirements for
Directors and senior management; 5. Assessing the independence of independent
non-executive Directors; 6. Making recommendations to the Board on the
appointment or reappointment of Directors and succession planning for Directors
(in particular the Chairman and the Chief Executive Officer); and 7. Other
responsibilities stipulated in the Articles of Association or as required by the
Board.
The procedures to nominate and criteria to select and recommend candidates for
directorship and senior management are: in accordance with the provisions of
the Company Law, the Securities Law, the Rules for the Independent Directors
of Listed Companies (
《上市公司獨立董事規則》
) of the CSRC, Measures for the
Supervision and Administration of Directors, Supervisors, Senior Management
Officers and Practitioners of Securities Fund Operating Institutions (
《證券基金
經營機構董事、監事、高級管理人員及從業人員監督管理辦法》
), the Hong
Kong Listing Rules of the Hong Kong Stock Exchange and other relevant laws,
regulations and the Articles of Association, the Nomination Committee under
the Board shall base on the Company’s actual situation, study the criteria for
election of the Company’s senior management officers including directors,
the chief executive officer and others, the procedures for selection and term
of the office and submit such resolution once made to the Board for approval.
It then follows and implements the resolution. Selection procedures are: 1.
the Nomination Committee shall actively exchange opinions with the relevant
departments of the Company, study the Company’s requirements for the senior
management officers including directors, the chief executive officer and others
and shall prepare materials in written form; 2. the Nomination Committee may
search for the candidates for the senior management officers including directors,
the chief executive officer and others both from and within the Company and
a controlling (shareholding) enterprise, and out of the Company; 3. to collect
data of the natural condition of the preliminarily screened candidate and his/her
morality, ability, diligence and performance, and prepare written information; 4.
to obtain the consent of the nominee regarding the nomination or else the nominee
cannot act as a candidate for a senior management officer including a director,
the chief executive officer and others; 5. to convene a meeting of the Nomination
Committee and to examine the qualifications of the preliminarily selected
candidates based on the appointment criteria for senior management officers
including directors, the chief executive officer and others; 6. one to two months
prior to the election of new directors and appointment of new senior management
187
officers including the chief executive officer and others, to submit to the Board
the suggestion on the candidates for directors and the candidates for newly hired
senior management officers including the chief executive officer and others and
the relevant materials; 7. other follow-up work is to be carried out pursuant to the
decision and feedback of the Board.
During the Reporting Period, the Nomination Committee of the Board convened
two meetings in total, the details of which were as follows:
Meeting name
Convening date
Meeting contents
Important comments
and suggestions
Other conditions on
execution of duty
The first meeting of the
Nomination Committee of the
sixth session of the Board for
2024
April 10, 2024
To consider and approve
the Resolution on
the Election of an
Independent Non-
executive Director of
the Sixth Session of the
Board of the Company.
The Nomination
Committee
considered and
approved the
resolution at the
meeting.
The meeting was
convened by way
of teleconference.
The second meeting of the
Nomination Committee of the
sixth session of the Board for
2024
December 31, 2024
To consider and
approve the Report
on Performance of
Duties of Nomination
Committee under the
Board of the Company
for 2024.
The Nomination
Committee
considered and
approved the
resolution at the
meeting.
The meeting was
convened by way
of teleconference.
Attendance of the members of the Nomination Committee at the meetings held
during the Reporting Period:
Name
Attendance in person/
Number of meetings
requiring attendance
Wang Quansheng
2/2
Peng Bing
2/2
Yin Lihong
2/2
188
5.
Remuneration and Appraisal Committee of the Board
The main duties of the Remuneration and Appraisal Committee of the
Board include: 1. Reviewing and providing opinions on the appraisal and
remuneration management system for Directors and senior management,
and making recommendations to the Board on the Company’s overall policy
and structure for the remuneration of the Directors and senior management,
and on the establishment of a formal and transparent procedure to develop
remuneration policy; 2. Reviewing and approving the management’s remuneration
proposals with reference to the Board’s corporate goals and objectives; 3.
Conducting assessment on and making recommendations to the Directors and
senior management: making recommendations on the remuneration packages,
including benefits in kind, pensions and compensation payments (including
any compensation payable for loss or termination of office or appointment), for
certain executive Directors and senior management, and making recommendations
to the Board on the remuneration of non-executive Directors; 4. Considering
salaries paid by comparable companies, time commitment and responsibilities
and engagement condition elsewhere in the Group; 5. Reviewing and approving
compensation payable to executive Directors and senior management for any loss
or termination of office or appointment to ensure that it is consistent with the
relevant contractual terms. In case of inconsistency with the relevant contractual
terms, the compensation shall be fair and not be excessive; 6. Reviewing and
approving compensation arrangements relating to dismissal or removal of Directors
for misconduct to ensure that they are consistent with the contractual terms.
In case of inconsistency with the relevant contractual terms, the compensation
shall be reasonable and appropriate; and 7. Ensuring that no Director or any of
his/her associates is involved in determining their own remuneration; 8. Other
responsibilities stipulated in the Articles of Association.
189
During the Reporting Period, the Remuneration and Appraisal Committee of the
Board convened four meetings, the details of which were as follows:
Meeting name
Convening date
Meeting contents
Important comments
and suggestions
Other conditions on
execution of duty
The first meeting of the
Remuneration and Appraisal
Committee of the sixth session
of the Board for 2024
March 27, 2024
1. To consider and
approve the Report on
Performance Assessment
and Remuneration of
the Directors of the
Company in 2023;
2. To consider and approve
the Report on Execution
of Duty, Performance
Assessment and
Remuneration of the
Senior Management of
the Company in 2023.
The Remuneration
and Appraisal
Committee considered
and approved the
resolutions at the
meeting.
The meeting was
convened by way of
teleconference.
The second meeting of the
Remuneration and Appraisal
Committee of the sixth session
of the Board for 2024
April 10, 2024
To consider and approve
the Resolution on
Fulfilment of Conditions
for Release from Selling
Restriction of the
Second Lock-up Period
under the Restricted
Share Incentive Scheme
of A Shares of the
Company.
The Remuneration and
Appraisal Committee
considered and
approved the resolution
at the meeting.
The meeting was
convened by way
of on-site & video
meetings.
The third meeting of the
Remuneration and Appraisal
Committee of the sixth session
of the Board for 2024
August 29, 2024
To consider and approve
the Resolution in
Relation to the
Performance Plan and
Target of the Company’s
Senior Management for
2024.
The Remuneration and
Appraisal Committee
considered and
approved the resolution
at the meeting.
The meeting was
convened by way of
teleconference.
The fourth meeting of the
Remuneration and Appraisal
Committee of the sixth session
of the Board for 2024
December 19, 2024
To consider and approve
the Resolution on
Amendments to
the Remuneration
Management System of
Huatai Securities Co.,
Ltd.
The Remuneration and
Appraisal Committee
considered and
approved the resolution
at the meeting.
The meeting was
convened by way of
teleconference.
190
Attendance of the members of the Remuneration and Appraisal Committee at the
meetings held during the Reporting Period:
Name
Attendance in person/
Number of meetings
requiring attendance
Wang Quansheng
4/4
Peng Bing
4/4
Wang Bing
4/4
IX.
PERFORMANCE OF DUTIES OF SUPERVISORS
The Supervisory Committee is the Company’s supervisory body and is accountable to the
Shareholders’ general meeting. The Supervisory Committee is responsible for supervising
the financial activities and internal control of the Company, and supervising the legality and
compliance of the performance of duties by the Board of Directors, operating management
and its members in accordance with the Company Law and the Articles of Association.
In 2024, the Supervisory Committee of the Company complied with the relevant provisions
of the Company Law, the Securities Law, the Rules of Procedures for the Supervisory
Committee under the Articles of Association and other relevant regulations, to conscientiously
perform and independently exercise the supervisory powers and duties of the Supervisory
Committee. In the spirit of being responsible to all shareholders, the Supervisory Committee
effectively supervised the Company’s operating activities, financial position, major decisions
of the Board of Directors and the legality and compliance of the performance of duties by
operating management. It actively protects the interests of the Company and the shareholders,
and escorts the healthy development of the Company.
(I)
Performance of duties by Supervisors
During the Reporting Period, the Supervisory Committee of the Company held 5
meetings in total. For relevant information, please refer to “Meetings of the Supervisory
Committee Convened During the Reporting Period” in this section.
191
During the Reporting Period, all the Supervisors of the Company attended the meetings
of the Supervisory Committee, the Board of Directors, and the Shareholders’ general
meetings, the details of which were as follows:
Attendance at meetings of the Supervisory Committee
Name of
Supervisor
Position
Number of
meetings of
Supervisory
Committee
requiring
attendance
Attendance
in person
Attendance
in the way of
teleconference
Attendance
by proxy
Absence
Whether or
not he/she
failed
to attend
the meeting
in person
for two
successive
times
Attendance
at Board
meeting
Attendance
at
the general
meeting
Gu
Chengzhong
Chairman of the
Supervisory
Committee,
employee
representative
Supervisor
5
5
1
–
–
No
5
3
Lv Wei
Supervisor (appoonted
on june 20, 2024)
2
1
–
1
–
No
1
–
Yu Lanying
Supervisor
5
5
1
–
–
No
4
3
Zhang
Xiaohong
Supervisor
5
4
1
1
–
No
3
–
Zhou
Hongrong
Supervisor
5
5
1
–
–
No
4
–
Wang Ying
Employee representative
Supervisor
5
5
1
–
–
No
5
3
Wang Juan
Employee representative
Supervisor
5
4
1
1
–
No
4
3
Li Chongqi
Supervisor (resigned)
3
2
1
1
–
No
1
–
Number of meetings of Supervisory Committee convened during the year
5
Of which: number of meetings held on-site
1
number of meetings in the way of teleconference
1
number of meetings held on-site and in the way of teleconference
3
192
(II)
Independent opinions of the Supervisory Committee
During the Reporting Period, the Supervisory Committee convened 5 meetings in total
throughout the year, at which 14 proposals and reports were considered or heard. The
Supervisors sat in the Board meetings and general meetings of the Company, monitored
the decision-making process on material matters on a real-time basis, kept abreast of
the senior management’s implementation of the decisions made by the Board through
carefully reading the reports of the Company, including Work Newsletter (monthly)
and Brief Report on Audit Work (quarterly) and conducting onsite investigations and
surveys on the Company’s branches. On this basis, the Supervisory Committee gave
independent opinions on the Company’s relevant matters as follows:
1.
Legal operation
During the Reporting Period, the Company was under legal operation in
compliance with relevant laws and regulations such as the Company Law, the
Securities Law and the Articles of Association as well as the requirements of the
Company’s systems. Major operational decisions of the Company were reasonable,
and the decision-making procedures were lawful. The Company established a
relatively sound internal management system and internal control system, under
which various regulations were effectively implemented. During the Reporting
Period, the Supervisory Committee found no conduct violating laws, regulations,
the Articles of Association or damaging the interests of the Company and its
shareholders made by Directors and senior management of the Company when
performing their duties, and there were no material risks in the Company.
2.
Financial conditions of the Company
During the Reporting Period, the Supervisory Committee of the Company
regularly convened meetings of the Supervisory Committee to review quarterly
reports, interim reports, annual financial reports, annual evaluation reports on
internal control and other documents of the Company, and checked the business
and financial conditions of the Company. The Supervisory Committee believed
that the financial report of the Company for 2024 had been audited by Deloitte
Touche Tohmatsu Certified Public Accountants LLP which had issued a standard
audit report without qualified opinions. The Company’s financial statements were
prepared in compliance with the relevant requirements of the ASBE, which truly
reflected the financial conditions and operational achievements of the Company.
Regular reports were prepared and reviewed in compliance with relevant laws,
regulations and various requirements of the CSRC, the contents of which were
true, accurate and complete to reflect the actual conditions of the Company.
3.
Implementation of the System regarding Insider Registration and Management and
Confidentiality
During the Reporting Period, the Company amended the System regarding Insider
Registration and Management and Confidentiality of Huatai Securities Co., Ltd. in
accordance with relevant laws and regulations and carried out the registration and
management of insider information in an orderly manner pursuant to the policies.
There were no incidents found in the Company in violation of insider registration
and management and confidentiality obligation.
193
4.
Related-party transactions
During the Reporting Period, the related-party transactions of the Company were
fair and reasonable, and no circumstances impairing interests of the Company
and shareholders have been found. When the Board of Directors of the Company
considered related matters, affiliated directors abstained from voting, and the
voting procedures were legal and valid.
5.
Use of funds raised
During the Reporting Period, the Company successfully issued 5 tranches of short-
term corporate bonds with a total scale of RMB16.8 billion; issued one tranch of
perpetual subordinated bonds with a total scale of RMB2.6 billion; issued overseas
medium-term notes with a total scale of USD593 million. During the Reporting
Period, the Company issued 2,891 income certificates with a total scale of
RMB32.061 billion. As of the end of the Reporting Period, 372 income certificates
continued to exist with a total scale of RMB20.241 billion. The funds raised from
the corporate bonds have been fully utilised, which is conformed to the purpose,
utilisation plan and other agreements as undertaken in the prospectus.
6.
Implementation of share incentive scheme
During the Reporting Period, the Supervisory Committee considered the
Resolution on Fulfilment of Conditions for Release from Selling Restriction of the
Second Lock-up Period under the Restricted Share Incentive Scheme of A Shares
of the Company and issued its written review opinions. The conditions for release
from selling restriction of the second lock-up period under the Restricted Share
Incentive Scheme of A Shares of the Company have been fulfilled, which was in
compliance with the requirements under the Restricted Share Incentive Scheme of
A Shares of Huatai Securities Co., Ltd. without compromising the interests of the
Company and the shareholders.
During the Reporting Period, the Supervisory Committee considered the
Resolution on Repurchase and Cancellation of Part of the Restricted A Shares
of the Company and issued its written review opinions. The repurchase and
cancellation of part of the restricted A Shares of the Company and relevant
consideration procedures were in compliance with the requirements under the
laws, regulations and normative documents such as the Administrative Measures
on Share Incentives of Listed Companies as well as the Articles of Association
and the Restricted Share Incentive Scheme of A Shares of the Company without
compromising the interests of the Company and the shareholders.
194
During the Reporting Period, the Supervisory Committee considered the
Resolution on Adjustment to the Repurchase Price Applicable to the Restricted
Share Incentive Scheme of A Shares of the Company and issued its written review
opinions. The adjustment to the repurchase price applicable to the restricted
A Shares of the Company, which was made by the Board of the Company in
accordance with the authorization of the general meeting, was in compliance with
requirements under the laws, regulations and normative documents such as the
Administrative Measures on Share Incentives of Listed Companies (
《上市公司股
權激勵管理辦法》
) and the Incentive Scheme; and the procedures of consideration
were in compliance with laws and regulations without any prejudice to the
interests of the Company and the Shareholders.
7.
Review of relevant reports
(1)
Written reviews and opinions on the annual report of the Company for 2024
prepared by the Board of Directors were as follows:
The annual report of the Company for 2024 was prepared and reviewed
in compliance with the relevant laws, regulations and requirements of
regulatory authorities, the contents of which were true, accurate and
complete and could reflect the actual conditions of the Company.
(2)
The Supervisory Committee of the Company reviewed the Assessment
Report on Internal Control of the Company for 2024, and had no objections
to the contents therein.
X.
RISKS FOUND BY THE SUPERVISORY COMMITTEE IN THE COMPANY
The Supervisory Committee had no objections towards the matters under supervision during
the Reporting Period.
XI.
ESTABLISHMENT AND IMPLEMENTATION OF INTERNAL CONTROL SYSTEM
DURING THE REPORTING PERIOD
(I)
Statement of the Board
In accordance with the requirements of the corporate internal control standard
system, it is the responsibility of the Board of the Company to establish, improve and
effectively implement internal control, assess its effectiveness and truthfully disclose
the assessment report on internal control. The Supervisory Committee oversees
the establishment and implementation of internal control by the Board. The senior
management is responsible for organizing and steering the day-to-day operation
of corporate internal control. The Board of Directors, the Supervisory Committee,
Directors, Supervisors and senior management of the Company undertake that the
internal control assessment report contains no false record, misleading statement or
material omission, and assume individual and joint legal liabilities to the authenticity,
accuracy and integrity of this report.
195
The objective of internal control of the Company is to reasonably ensure the legality
and compliance of the operation and management, the security of the assets, and the
truthfulness and completeness of the financial report and its relevant information, to
improve operating efficiency and effectiveness, and to promote the accomplishment
of the development strategy. Due to the inherent limitations of internal control, only
reasonable assurance can be provided for the achievement of the above objectives. In
addition, internal control may become inappropriate or the level of compliance with
control policies and procedures may become lower due to the changes of situation, so
it subjects to certain risks to speculate the effectiveness of internal control in the future
based on the results of internal control evaluation.
(II)
Structure of the internal control system
The Board of Directors has set up special committees such as the Compliance and
Risk Management Committee, the Audit Committee and the Development Strategy
Committee to comprehensively monitor the effective implementation of internal control
and self-evaluation of internal control. The Company established the leading group for
the construction and continuous optimization of internal control to comprehensively
lead internal control standardized project construction and continuously promote
the improvement of the internal control system. The Company designates Risk
Management Department, Planning and Finance Department, Inspection Department,
Legal Compliance Department, etc. as internal control management departments and
all departments as internal control implementation departments to fully cooperate with
the improvement and self-assessment of the internal control system, actively rectify
defects in internal control and give feedback on rectification results as required. The
Inspection Department shall be responsible for conducting internal control evaluation
independently and implementing internal audit and assessment independently on the
Company’s internal control measures annually.
196
(III) Construction and improvement of the internal control system
The Company strictly follows the Company Law, the Securities Law, Regulation
on Supervision and Administration of Securities Firms (
《證券公司監督管理條例》
),
Guidelines for Internal Control of Securities Firms (
《證券公司內部控制指引》
), Basic
Internal Control Norms for Enterprises (
《企業內部控制基本規範》
), the implementation
guidelines for enterprise internal control and other regulatory requirements, and
continually improves the corporate governance structure, compliance risk control
system and internal control management system. The Company practices internal
control management methods, constantly enhances the ability to restrict itself and
effectively prevents and resolves various risks so as to ensure the continuous, stable and
rapid development of various businesses thereof. The Company makes clear the internal
control organizational structure and division of responsibilities, and the leading group
for internal control construction and continuous optimization supervises and promotes
the internal control construction of the Company. The Company’s whole businesses,
departments, branches and all staff are involved in internal control, throughout each
link from decision-making, implementation, supervision to feedback. Based on
regulatory requirements and business development, the Company continued to improve
various internal control management systems and constantly established and improved
internal control systems appropriate to the scale and complexity of the business of the
Company. Starting from prudent operation and identification, prevention and resolution
of risks, the Company established and continued to improve a multi-level internal
control evaluation mechanism comprising regular and irregular self-evaluation of the
effectiveness of internal control, evaluation of the effectiveness of internal control by
internal audit department and independent evaluation by external auditors, so as to
continuously strengthen the overall internal control.
(IV) Operation of the internal control system
With a focus on the regulatory requirements, development strategies and operation
objectives, the Company continued to deepen the operation of the internal control
system. The Company regularly or irregularly carried out a review and update of the
system to ensure the comprehensiveness, prudence, effectiveness and applicability of the
system and standards, so as to avoid blank or loopholes. The Company strengthened its
risk review, assessment, examination, management and control in material institutions,
major businesses and key fields to guarantee the risks are measurable, controllable
and bearable. It deepened the establishment of the business continuity management
mechanism and improved the systems of emergency management; and actively
conducted publicity and trainings to strengthen the internal control culture publicity.
The Company continued to deepen the analysis and rectification tracking of control
deficiencies and improved the effectiveness of the design and implementation of control
measures by conducting regular and irregular self-assessments of the effectiveness of
internal controls and evaluation of the effectiveness of internal controls.
197
(V)
Basis for the assessment of internal control
The Company organizes to conduct internal control assessment according to the
corporate internal control standard system and the Guidelines for Internal Control
of Securities Firms (
《證券公司內部控制指引》
) and Rules for the Preparation and
Reporting of Information Disclosure by Listed Issuers of Securities No. 21 – General
Provisions on the Annual Internal Control Assessment Report (
《公開發行證券的公司
信息披露編報規則第
21
號 － 年度內部控制評價報告的一般規定》
) issued by the CSRC
and other relevant laws, regulations and regulatory rules.
(VI) Internal control defect and its identification
According to the identification requirements for major defects, important defects and
general defects as stipulated by the internal control system of enterprises, the Board of
the Company, in consideration of such factors as the scale of the Company, industrial
characteristics, risk appetite and risk tolerance, distinguished financial report internal
control from non-financial report internal control and determined the internal control
defects applicable to the Company and its specific identification standards, which were
consistent with those of the previous years.
A material defect refers to a combination of one or more controlling defects that could
cause the enterprise to deviate significantly from its control objectives; a significant
defect refers to a combination of one or more controlling defects that is less severe
and has less economic consequences than a material defect, but may still cause the
enterprise to deviate from its control objectives; general defects refer to defects other
than material defects and significant defects.
(VII) The Company
’
s internal control effectiveness assessment
According to the Basic Internal Control Norms for Enterprises (
《企業內部控制基本規
範》
) and its provisions in its supporting guidelines and other regulatory requirements
on internal control as well as the Company’s internal control system and assessment
methods, we have assessed the Company’s internal control effectiveness on December
31, 2024 (base date of internal control assessment report) based on the daily supervision
and specialized supervision of internal control, and have issued the Annual Internal
Control Evaluation Report for 2024. The Company considered its risk management and
internal control systems effective and adequate.
The main businesses and matters included in the evaluation scope of the Company’s
internal control include: internal environment, risk assessment, control activities,
information and communication, internal supervision, as well as incompatible position
separation control, authorization and approval control, accounting system control,
property protection control, budget control, operation analysis control and performance
appraisal control involved in the control activities. High-risk areas we focused on
include: brokerage business, financial product sales and fund investment advisory
business, margin financing and securities lending and stock pledge businesses, equity
trading business, FICC trading business, OTC derivatives trading business, investment
banking business, funds custody and service business, research business, financial
management, information technology, compliance and legal affairs, related-party
transactions, internal control of subsidiaries and other key fields, as well as the liquidity
risk, market risk, credit risk, operational risk, reputation risk, information technology
risk, compliance risk, legal risk and integrity risk that have significant impact on the
Company’s operation and management.
198
According to the identification results of major defects in financial report internal
control, on the base date of internal control assessment report, the Company does
not have major defects in financial report internal control. The Board of Directors
thinks that the Company has maintained effective financial report internal control in
all major aspects according to the enterprise internal control standardized system and
requirements in relevant regulations.
According to the identification results of major defects in non-financial report internal
control, on the base date of internal control assessment report, the Company is not
aware of major defects in non-financial report internal control.
(VIII)
Work plan for internal control in 2025
In 2025, the Company will continuously promote internal control optimize work. The
key contents include referring to and implementing new regulatory and industrial
requirements and improving the execution effectiveness of management and control
measures with focus on normalizing and deepening special evaluation and examination
as well as enhancing the efficiency of management and control tools; improving the
process control and the ability to identify risks, improving monitoring indicators system
and enhancing the insurmountability of management and control; and deepening the
establishment of internal control and management culture and intensifying training and
publicity.
XII. MANAGEMENT AND CONTROL OF SUBSIDIARIES DURING THE REPORTING
PERIOD
Adhering to the philosophy of collective, specialized and platform-based management, the
Company incorporated its onshore and offshore subsidiaries into the comprehensive risk
management system. During the Reporting Period, the Company continued to enhance the
refined management and control ability, continuously integrated risk data and information of
the Group, further enhanced the unified risk measuring, monitoring and analysis capability
of the Group and normally urged subsidiaries to implement the unified rules of the Group
to ensure that the risks of subsidiaries are measurable, controllable and bearable under the
overall risk preference of the Group.
XIII. INFORMATION ABOUT THE INTERNAL CONTROL AUDITING REPORT
When disclosing the annual report for 2024, the Company will also disclose the 2024 Annual
Internal Control Evaluation Report of Huatai Securities Co., Ltd. and the Internal Control
Audit Report of Huatai Securities Co., Ltd. at the same time, which will be published on
the website of the Shanghai Stock Exchange (www.sse.com.cn), the HKEXnews website of
the HKEX (www.hkexnews.hk) and the Company’s official website (www.htsc.com.cn) on
March 29, 2025.
Whether to disclose the internal control audit report: Yes
Type of opinion on the audit report on internal control: Standard unqualified opinion
199
XIV. RECTIFICATION OF PROBLEMS DISCOVERED IN SPECIAL SELF-INSPECTION
ACTIONS ON LISTED COMPANIES GOVERNANCE
During the Reporting Period, the Company was not involved in relevant self-inspection and
rectification.
XV. BUILDING OF THE COMPLIANCE MANAGEMENT SYSTEM OF THE COMPANY
AND THE INSPECTION AND AUDIT FINISHED BY THE COMPLIANCE AND
INSPECTING DEPARTMENT DURING THE REPORTING PERIOD
The Company always places emphasis on the corporate culture of operation in compliance
with laws and regulations, and carries out strict management and prudent and standard
operation. During the Reporting Period, in accordance with the relevant laws and regulations
and the regulatory requirements, the Company further improved the compliance management
system, perfected the organizational structure for compliance management, and continued to
deepen the compliance management of the Company to keep continuous and standardized
development of the Company’s various businesses.
(I)
Organizational Structure for Compliance Management
Since its establishment, the Company has been adjusting and improving the
organizational structure for compliance management and the relevant systems
based on the changes of the market environment and regulatory requirements and
the development needs of business. According to the Measures for the Compliance
Management of Securities Companies and Securities Investment Fund Management
Companies (
《證券公司和證券投資基金管理公司合規管理辦法》
) (hereinafter
referred to as the “Measures”) issued by the CSRC, the Company further clarified
the compliance duties of the Board of Directors, Supervisory Committee, senior
management, chief compliance officer, and responsible persons of all departments,
all branches and subsidiaries at all levels (hereinafter referred to collectively as “all
subordinate units”) in the Articles of Association and the basic compliance management
system. The current compliance organizational system comprehensively reflects the
basic requirements of the Measures for “full compliance” and “starting compliance
management from the senior management”, and a resultant force situation of sound
compliance management organizational structure, clear positioning of responsibilities at
all levels and full compliance is basically created.
200
The Board of Directors is the supreme decision-making body for compliance
management of the Company, which bears ultimate responsibility for the effectiveness
of compliance management, decides on the compliance management objectives and
is responsible for the effectiveness of compliance management of the Company;
the Compliance and Risk Management Committee under the Board of Directors is
responsible for overseeing the overall risk management of the Company and controlling
the risks within a reasonable range to ensure that the internal management system,
business rules, significant decisions and main business activities of the Company are
in compliance with laws and regulations and the risks are controllable and bearable;
the Supervisory Committee is responsible for supervising the compliance management
and the performance of compliance management duties by Directors and senior
management; the senior management assumes the major responsibilities for compliance
management, implements the compliance management objectives of the Company and
is responsible for the whole company’s compliance management; responsible persons
of all subordinate units are responsible for their units’ operations in accordance with
laws and regulations; all the staff of the Company are responsible for the compliance of
the operational matters and professional conducts within the range of their operational
activities.
The chief compliance officer is in charge of the compliance of the Company, conducts
audit, inspection and supervision on the compliance of the management and professional
conducts of the Company and its staff, and helps the operation management effectively
identify and manage compliance risks. The chief compliance officer is a member of
the Company’s senior management, and is appointed by the Board of Directors. The
chief compliance officer does not hold any concurrent posts or take charge of any
departments that conflict with his/her compliance management duties.
The Company has established a Legal Compliance Department to assist the chief
compliance officer in performing specific compliance management duties, mainly
including: establishment of the compliance management system of the Company;
compliance training, inspection and guidance; assessment and unified disposal of
compliance risks; compliance review and compliance reports; cooperation with
external compliance supervision and management institutions; anti-money laundering
and Chinese Wall; establishment of the legal system of the Company; review of legal
documents; handling of legal affairs; assessment of and consultation on legal risks.
All departments and branches of the Company have their own compliance officers.
A compliance officer is mainly responsible for the compliance management work of
the unit he/she belongs to, carrying out timely and effective supervision, inspection,
assessment and reporting on the implementation of compliance policies and procedures
by such unit and its staff, and is responsible for the unit’s communication and
exchange of information with the Legal Compliance Department and other compliance
management work.
201
The Company further strengthened the vertical management on compliance of branches,
established a three-dimensional compliance management mechanism, promoted the
construction of digital compliance, and deepened the effective integration of business
and compliance. Each branch of the Company has established and improved various
compliance management systems and mechanisms in accordance with their own actual
situations. The Company established the management measures for compliance of
subsidiaries, which made detailed arrangements for basic principles, organizational
structure and working mechanism of compliance management of the subsidiaries, and
established a sound compliance management system appropriate to the group strategy
on the basis of ensuring the independence of the subsidiaries’ legal representatives.
(II)
Compliance System Building of the Company
The Company continued to improve the compliance management system and formed
various compliance management systems, including the Compliance Management
System (2017 Revision), Measures for the Compliance Management of Subsidiaries
(2020 Revision), Daily Working Measures for Compliance Management (2020
Revision), Measures for Management of Compliance Management Personnel (2020
Revision) and Measures for the Implementation of Compliance Accountability.
During the Reporting Period, the Company formulated or amended compliance systems
such as the Contract Management System, the Administrative Measures on Securities
Investment Behaviors of Staff, the Basic System for Anti-Money Laundering and Anti-
Terrorism Financing, the System for Prompt Reporting of Significant Events, the
Measures on Handling Business Complaints from Customers, and the Guidelines on
Compliance Management of Proxy Sales of Private Financial Products, which further
optimized the compliance control system and the anti-money laundering management
system.
(III) Implementation of the Compliance Management Mechanism
Since the full implementation of the compliance management system, the Company
saw continuous improvement of its compliance management work, explored to build
up the “core competitiveness in terms of compliance” and saw significant improvement
in the standardization of operations. During the Reporting Period, by adhering to the
work objective of “seeing clearly, managing well and doing a good job”, the Company
consolidated the fundamentals in collaboration with various businesses, continued
to strengthen business synergy to support business innovation, iterated and upgraded
the digital compliance capabilities. It effectively implemented the new Anti-Money
Laundering Law (
《反洗錢法》
), made solid efforts to prevent the risks of economic
sanction and export control, and continued to enhance the management of employees’
behaviors in securities investment, so as to empower the business to speed up the
building of a core competitive advantage in compliance.
202
(IV) Information about Inspection Carried out by the Compliance Department during
the Reporting Period
During the Reporting Period, the compliance department of the Company continued to
carry out targeted inspections on key businesses and key processes, and organized and
launched compliance inspections on fund custody and service business, compliance
inspections on financial product proxy sale and introduction, compliance inspections
on stock options brokerage business of branches, special compliance inspections on
subsidiaries and special inspections on anti-money laundering, etc. as well as continued
to follow up on the progress of rectification and improvement work.
(V)
Progress of Audit Work of the Audit Department during the Reporting Period
During the Reporting Period, the Company’s Audit Department improved the audit
mechanism, optimized the project process, strengthened team building and deepened
technological empowerment, striving to build a “centralized, unified, overall,
authoritative and efficient” supervision system, and actively fulfilling the work
requirements of “acting like the arms employing the fingers, like a shadow following
the body and like a thunder through the ear”. It carried out inspections and evaluation
on the establishment and implementation of the internal control mechanisms of each
department and subsidiary, and each branch and securities business department of the
Company, the legality and compliance of business operation, operating guarantee,
client services, anti-money laundering and innovative business, as well as the accuracy
of financial revenue and expenditure and accounting calculation, ensuring all works
to comply with the quality control requirements and contributing to the strategy
implementation and steady operation of the Company.
During the Reporting Period, the Company’s Audit Department served the classified
and stratified customer service system that links the whole business chain, continued
to expand the scope of audit supervision in depth and width without leaving any area
undiscovered, ensuring that audits are carried out in an overall and rigorous manner
and that violations must be held accountable. During the Reporting Period, it completed
190 audit items, including 17 regular and General Managers’ departure audits on
business and management departments, including the research institute, asset custody
department, financial products department, securities investment department, wealth
management department, fixed income department, debt financing department, margin
financing and securities lending department, sales and trading department, platform
operation department, investment advisor development department, financial innovation
department, central trading room, office; 11 regular and senior management’ departure
audits on branches, including Huatai Futures, Huatai United Securities, Huatai Asset
Management, Huatai Innovative Investment, Huatai Purple Gold Investment, Huatai
International and Jiangsu Equity Exchange; 22 departure and mandatory leave audits
on General Managers of branches, including those in Yancheng, Yunnan, Yangzhou,
Changzhou, Shenzhen, Nanjing, Xuzhou,
Zhenjiang, Jiangxi, Tianjin, Wuxi, Zhejiang,
Sichuan, Shandong, Shanghai, Anhui, Hubei, Hunan, Beijing, Suzhou and Taizhou;
127 departure and mandatory leave audits on General Managers of securities branches,
including those in Beijing Yonghe Palace, Xisanhuan in Beijing, Suzhou Street in
203
Beijing, Century Avenue of Pudong New District in Shanghai, Huanghe Road in
Shanghai, Raffles Square of Huangpu District in Shanghai, Huanshi East Road in
Guangzhou, Zhujiang West Avenue in Guangzhou, Yuncheng East Road in Guangzhou,
Yitian Road in Shenzhen, Zhongxin Road of Houhai in Shenzhen, Zhenghe Middle
Road in Nanjing, Zhimaying in Nanjing, Changjiang Road in Nanjing, Ganjiang West
Road in Suzhou and Xinshi Road in Suzhou; 13 special audits including assessment
of the effectiveness of corporate compliance management, corporate internal control
evaluation, effectiveness evaluation of the dynamic monitoring system for corporate risk
control indicators, evaluation of corporate anti-money laundering, specific securities
investment and funds custody and service business, specific funds sales business,
specific related-party transactions, specific corporate system operation and maintenance
as well as security management and special key matters in 2023. As of the end of the
Reporting Period, audit reports have been issued for 182 audit items; 575 audit opinions
and suggestions were put forward; according to the Implementing Rules for Penalties of
Illegal Behaviors Discovered in Audit of Huatai Securities Co., Ltd., suggestions were
made on penalties for 126 person-times and the penalty amounted to RMB185,000, to
reinforce the accountability constraints and achieve a warning effect. As of the end
of the Reporting Period, 503 audit issues had reached the deadline for rectification
(one month after the issuance of the document), and 481 of them had been rectified,
representing a rectification completion rate of 95.63%. All units under auditing actively
coordinated in the auditing process and the audit opinions and suggestions were
recognized by units under auditing and their responsible persons.
During the Reporting Period, the Company’s Audit Department promoted the
improvement of the audit quality control mechanism with reference to new external
regulations. On the one hand, against the background of formal implementation of
the Guidelines for Internal Audit of Securities Firms (
《證券公司內部審計指引》
), the
Internal Audit Management System (
《內部審計管理制度》
) was formulated to clarify
the positioning of internal audit functions and basic work requirements from five
aspects, namely, organizational structure and personnel management, terms of reference,
implementation of work procedures, application of results and audit accountability;
and with respect to audit projects that involved a large number of personnel in key
positions which accounted for a high proportion, the Measures for Internal Audit of
Personnel in Key Positions (
《關鍵崗位人員內部審計辦法》
) was amended to refine
the scope of audit and clarify the direction of audit. On the other hand, focusing on
improving work quality and optimizing audit quality and process control, a dedicated
task force was set up to formulate the Administrative Measures on Internal Audit
Quality Control (
《內部審計質量控制管理辦法》
), which aims to establish a mechanism
for the operation of integrated, coherent and consistent audit processes, including audit
planning, organization and implementation, review and examination, and supervision
and rectification, and build a mechanism for the allocation of resources and elements
that matches the audit duties and responsibilities.
204
During the Reporting Period, the Company’s Audit Department strengthened the
scenario empowerment of audit work based on platform construction. On the one hand,
it improved online audit management by refreshing the audit platform, with a brand-
new audit work platform put into full use for audit projects after completion of the
first phase of functional construction of the new audit system, and while meeting the
needs of project implementation, more process-oriented and convenient functions have
been under continuous construction around the OKR target. On the other hand, based
on audit data specifications, it enhanced use of data analysis, further improved data
demand management specifications of the audit data mart, made full use of various
data governance tools available in the Company’s digital intelligence middle platform
to carry out data governance and integration, and continued to expand scenarios for
use of data analysis. In addition, it widely mobilized audit staff to stimulate innovation
based on audit needs, and explored various segmented audit scenarios with the help of
the Company’s competition resources or intelligent tools, with the two objectives of
“empowering business development” and “empowering audit quality and efficiency”.
During the Reporting Period, the Company’s Audit Department continued to promote
the application of audit results, giving equal emphasis to the “latter part” of audit
rectification and the “former part” of revealing problems by auditing, ensuring the
planning, promoting and implementing work to be done in an integrated way. On
the one hand, it strengthened personnel allocation to rectification and supervision,
improved the design of rectification tracking process, developed and launched an audit
rectification function module based on the audit work platform, and connected the
module with a project implementation module to realize an automated task delivery
mechanism for initial audit rectification; it kept track of issues that had not been
properly rectified on an ongoing basis, and made rectification and supervision work
more practical and detailed, so that it could implement the online life-cycle management
of the audit issues from discovery to rectification. On the other hand, it tapped into
the value of issues, implemented results transformation and kept normalized delivery
of reports to the operating management and compliance and risk control departments,
sending specifically gathered reports to relevant units for their work reference; it put
forward specific recommendations to relevant units to promote prevention and control
from the source; as for general and typical issues, it compiled and delivered analysis
reports on auditing issues, and sent audit briefs to the whole company to prevent the
“broken windows effect”.
205
XVI. INFORMATION ABOUT THE STAFF OF THE PARENT COMPANY AND MAJOR
SUBSIDIARIES AS AT THE END OF THE REPORTING PERIOD
(I)
Information about the staff
Number of staff employed by the parent company
11,441
Number of staff employed by major subsidiaries
5,523
The total number of staff employed
16,964
Number of retired staff of the parent company and its major
subsidiaries that need to be paid for the cost
232
Profession Composition
Profession
Number of staff
Operation professionals
10,997
Operation support professionals
2,630
Research and development professionals
3,337
Total
16,964
Education
Level of education
Number (persons)
Doctor
164
Master
7,561
Bachelor
6,724
Junior college graduate and below
881
Total
15,330
Note: Due to the internal policies of corporations in the United States, the above statistics do not include
those of employees of corporations in the United States. Number of the Group’s staff includes
dispatched workers and brokers etc.
As of the end of the Reporting Period, the Group had a total of 10 members of senior
management, of whom 8 were male and 2 were female. The Group had 8,506 male
employees and 6,824 female employees in total, representing 44.5% being female
employees (Note: Due to the internal policies of US companies, the gender structure
statistics do not include US company employees). The Board is of the opinion that
the Company has achieved gender diversity among its employees (including senior
management), and is not aware of any factors or circumstances which make achieving
gender diversity across the workforce more challenging or less relevant.
The Company issued the “Statement of Rights and Benefits of Huatai Securities
Co., Ltd.” (
《
華泰證券
股份有限公司權益及福利聲明》
) on the official website of
the Company, which explicitly advocates employee diversity and ensures that the
employment and career development of employees are not affected by any factors such
as race, faith, gender, religion, nationality, ethnicity, age, marital status and social
status.
206
(II) Remuneration policy
The Company implements the concept of stable operation, closely integrates
compensation management with risk management, pays attention to the bottom-line
requirements of compliance and fully considers the impact of market cycle fluctuations,
industry characteristics and the Company’s business development trends. The Company
integrated the cultural concept of “compliance, integrity, professionalism and stability”
into its compensation management and continued to improve its remuneration
management system compatible with its operation performance, business nature, level
of contribution, compliance and risk control, and social culture, as well as established
and improved a sound remuneration incentive and restraint mechanism to promote
high-quality and sustainable development of the Company and the industry.
The Company attached importance to the linkage between remuneration and benefits,
took into account both internal fairness and external competitiveness of incentives, and
established a remuneration and incentive allocation mechanism that is linked to the
Company’s overall benefits, guided by the results of the comprehensive appraisal, and
matched with compliance and risk management. Staff remuneration of the Company
consists of fixed salary, rank-based allowances, performance bonus, medium and long-
term incentives and benefit plans, etc. The Company has established and implemented
the restricted share incentive scheme of A Shares in accordance with national laws and
regulations, which established a sound medium and long-term incentive and restraint
mechanism to gather core talents.
Pursuant to relevant laws and regulations, the Company makes full payments to social
insurances and housing fund accounts for staff in accordance with laws. Meanwhile,
the Company has established the supplementary medical insurance plan and enterprise
annuity plan to improve supplementary medical care and retirement treatment of staff.
(III) Training programs
In line with the development trend of industry innovation and transformation, the
Company continued to centralize its training on the aspects including ideological and
political, industry culture, comprehensive quality, professional ability, professional
ethics and international vision and its annual training plan was implemented smoothly.
The Company launched ideological and political education and securities industry
culture training to promote the integration of theories, culture building and talent
cultivation; formulated education and training programs for cadres, and carried out
three types of in-depth training on improving theoretical literacy, political competence
and duty performance; and organized series of training projects on career development
such as the “BAL” project for managers, the “HIPO” project for skilled employees and
the “STAR” project for new employees to support employees’ career development;
implemented business trainings on wealth management, institutional business, financial
technology, compliance and risk control and etc. to improve employees’ professional
capabilities and strengthen their professional ethics; and rolled out a trend forum
program to broaden the international horizon of employees and strengthen domestic
and overseas interconnections. In addition, the Company effectively utilized the cloud
learning platform and continuously optimized its functions to improve employees’ user
experience. During the Reporting Period, the Company organized 513 live broadcast
training sessions on the platform. 1,032,500 participants studied through the platform
and completed 366,900 hours of learning with an average of 36.85 hours for each
participant.
(IV) During the Reporting Period, there was no labor outsourcing by the Company.
207
XVII.
SHARE INCENTIVE SCHEME, EMPLOYEE STOCK OWNERSHIP PLAN OR
OTHER EMPLOYEE INCENTIVES MEASURES AND THEIR IMPLICATION
On February 8, 2021, a series of resolutions including the Resolution on the Restricted Share
Incentive Scheme of A Shares of Huatai Securities Co., Ltd. (Draft) and its Summary was
considered and approved at the Company’s first extraordinary general meeting of 2021.
On March 23, 2021, upon consideration and approval at the fourteenth meeting of the fifth
session of the Board of Directors of the Company, the Company made adjustment to the
Restricted Share Incentive Scheme of A Shares and agreed to grant restricted A Shares to the
incentive participants, and the grant date was determined to be March 29, 2021. For details,
please refer to the announcements of the Company dated December 31, 2020 and March 23,
2021.
(I)
Summary of the Share Incentive Scheme
1.
Purposes
The Company has formulated the Incentive Scheme in accordance with the
relevant requirements of the Company Law, the Securities Law, the Trial Measures
on Implementation of Share Incentive Schemes by State-owned Listed Companies
(Domestic) (Guo Zi Fa Fen Pei [2006] No. 175) (
《國有控股上市公司
(
境內
)
實施
股權激勵試行辦法》
(
國資發分配
[2006]175
號
)), the Notice on Issues concerning
Regulating the Implementation of the Share Incentive Schemes by State-Owned
Listed Companies (Guo Zi Fa Fen Pei [2008] No. 171) (
《關於規範國有控股上
市公司實施股權激勵制度有關問題的通知》
(
國資分配
[2008]171
號
)), Opinions
on Supporting Share Repurchase by Listed Companies (CSRC Announcement
[2018] No. 35) (
《關於支持上市公司回購股份的意見》
(
中國證監會公告
[2018]35
號
)) and The Administrative Measures on Incentive Scheme of Listed Companies
(CSRC Decree No. 148) (
《上市公司股權激勵管理辦法》
(
中國證監會令第
148
號
)). The main purposes of implementing the Incentive Scheme are as follows: (1)
to deepen and implement the mixed-ownership reform of state-owned enterprises;
(2) to stabilize and enhance the Company’s value; (3) to advocate the concept of
joint and sustainable development of both the Company and the individual; (4) to
establish and improve the long-term incentive and restriction mechanism of the
Company.
2.
Scope of the Incentive Participants
The incentive participants granted under the Incentive Scheme shall include
directors and senior management officers and other core key employees of the
Company, but exclude non-executive Directors (including independent Directors)
and Supervisors of the Company. All of the incentive participants are employed
with the Company (including branches) or wholly-owned or majority-controlled
subsidiaries.
208
3.
Interests Proposed to be Granted under the Share Incentive Scheme
The Restricted A Shares proposed to be granted to the incentive participants under
the Incentive Scheme shall be not more than 45,640,000 shares, representing
0.50% of the total share capital of the Company at the end of the Reporting Period.
The source of shares is the ordinary A shares repurchased from the secondary
market by the Company. The grant price shall be RMB9.10 per share and shall
not be lower than the higher of 50% of the average trading price of the A Shares
for the last trading day preceding the date of the Share Incentive Scheme and 50%
of the average trading price of the A Shares for either the last 20 trading days,
60 trading days or 120 trading days immediately preceding the Share Incentive
Scheme.
4.
Validity Period of the Share Incentive Scheme and Arrangement of Lock-up
Period
The validity period of the Incentive Scheme shall commence from the date of
completion of registration of the granted Restricted Shares and end on the date
when all the Restricted Shares granted to the incentive participants are fully
unlocked (excluding those subject to voluntary lock-up or reduction restriction
over Directors and senior management) or repurchased and deregistered, for a
maximum of six years. As of the disclosure date of this report, the remaining term
of the Incentive Scheme is approximately two years and one month.
The lock-up period of the Restricted Shares granted under the Incentive Scheme
is 24 months from the date of completion of registration for the grant of the
corresponding portion of the Restricted Shares, and the unlocking period and
unlocking schedule of each period of the Restricted Shares granted is set out
below:
Unlocking
Arrangement
Unlocking Period
Unlocking
proportion
The first
unlocking period
Commencing from the first trading day upon
the expiry of 24 months from the date of
completion of registration for the grant of the
corresponding portion of the Restricted Shares
to the last trading day of 36 months from the
date of completion of registration for the grant
of the Restricted Shares
33%
The second
unlocking period
Commencing from the first trading day upon
the expiry of 36 months from the date of
completion of registration for the grant of the
corresponding portion of the Restricted Shares
to the last trading day of 48 months from the
date of completion of registration for the grant
of the Restricted Shares
33%
209
Unlocking
Arrangement
Unlocking Period
Unlocking
proportion
The third
unlocking period
Commencing from the first trading day upon
the expiry of 48 months from the date of
completion of registration for the grant of the
corresponding portion of the Restricted Shares
to the last trading day of 60 months from the
date of completion of registration for the grant
of the Restricted Shares
34%
(II)
Particulars of the Grant under the Share Incentive Scheme
On April 7, 2021, the Company received the Certificate of Registration of Changes in
Securities issued by China Securities Depository and Clearing Corporation Limited
Shanghai Branch to set out the record date being April 6, 2021 and granted 45,488,000
Restricted A Shares to 810 eligible incentive participants at the grant price of RMB9.10
per Share. The Company has completed the registration of the grant of the restricted
A Shares. For details, please refer to the announcement of the Company dated April 7,
2021.
(III) Subsequent Development of the Share Incentive Scheme during the Reporting
Period
1.
Release from Selling Restriction of the Second Lock-up Period under the
Restricted Share Incentive Scheme of A Shares of the Company and Listing of
Relevant Shares
The eighth meeting of the sixth session of the Board and the seventh meeting of
the sixth session of the Supervisory Committee of the Company held on April
12, 2024 considered and approved the Resolution on Fulfilment of Conditions
for Release from Selling Restriction of the Second Lock-up Period under the
Restricted Share Incentive Scheme of A Shares of the Company respectively. The
Company has completed the relevant procedures for release from selling restriction
of 13,269,954 restricted shares held by 731 incentive participants in accordance
with relevant regulations, the above-mentioned Shares were released from selling
restriction and were listed for trading on May 16, 2024.
The closing price of A
Shares as at the trading date preceding to the release of selling restriction (i.e.
May 15, 2024) was RMB13.73 per share.
2.
Repurchase and Cancellation of Part of the Restricted A Shares
The eighth meeting of the sixth session of the Board, the seventh meeting of
the sixth session of the Supervisory Committee of the Company held on April
12, 2024 and the 2023 Annual General Meeting, the 2024 First A Share Class
Meeting, and the 2024 First H Share Class Meeting of the Company held on June
20, 2024 considered and approved the Resolution on Repurchase and Cancellation
of Part of the Restricted A Shares of the Company, respectively. The Company
repurchased and canceled part or all of 2,082,559 restricted shares granted to 175
persons but subject to selling restriction due to non-fully fulfillment of condition
of individual performance by incentive participants, release or termination of
employment with the Company and other circumstances.
210
During the Reporting Period, changes in the restricted A Shares granted under the
Share Incentive Scheme are as follows:
Participant
Number Locked
at the Beginning
of the Period
Number Newly
Granted
Number
Unlocked
Number
Cancelled
Cancellation
Price
Number Locked
at the End
of the Period
Zhou Yi
482,400
–
237,600
–
–
244,800
Five highest remuneration
individuals
381,900
–
188,100
–
–
193,800
Other incentive participants
28,414,092
–
12,844,254
2,082,559
7.37
13,487,279
Total
29,278,392
–
13,269,954
2,082,559
7.37
13,925,879
(IV) There was no share incentive granted to the Directors and senior management
during the Reporting Period.
(V)
Appraisal mechanism for the senior management and the establishment and
implementation of incentive mechanism during the Reporting Period
During the Reporting Period, the Company comprehensively promoted the tenure
system and contractual management of the operating management, and organized
senior management to sign the annual operating performance responsibility letter. The
Company followed the principle of sharing goals, comprehensively benchmarking the
market and attaching equal importance to incentives and restrictions in carrying out
annual performance appraisal on senior management. Appraisal on senior management
adopts the target appraisal on key performance indicators. The performance indicators
are related not only to the annual operating goals of the Company but also reflect the
orientation of compliance operation as well as the emphasis and difficulties of relevant
work charged by such individual. The performance indicators and target value on senior
management are determined by the Board based on the Company’s annual operation
strategies, the characteristics of the Company, the market environment and others. The
Board determines the level of annual appraisal and remuneration allocation of senior
management at the end of the year after comprehensively considering the Company’s
annual operating goals, the completion of relevant work charged by the senior
management and the special annual compliance appraisal.
211
XVIII.
PROPOSAL OF PROFIT DISTRIBUTION OR CAPITALIZATION FROM CAPITAL
RESERVE
(I)
Formulation, implementation or adjustment of cash dividend policy
Article 261 of the Articles of Association has clarified the Company’s profit
distribution policy, the decision-making process for the profit distribution plan and the
decision-making process for adjustments of the profit distribution policy. The policy
of the Company’s profit distribution is: “The Company shall focus on generating a
reasonable investment return to the investors and implements continual and steady
policy of profit distribution; the Company’s profit distribution shall not exceed
the scope of accumulated distributable profits nor impair the Company’s continual
operational capability; the Company may distribute dividends in form of cash, shares
or a combination of cash and shares. Except for the special condition under which the
Company plans to conduct material investments or make major cash expenses within
the next twelve months, or other conditions that may result in the fact that the Company
fails to comply with the regulatory requirements regarding net capital, the Company
shall distribute its dividends in form of cash if the Company’s profits for the current
year and its accumulated non-distributed profits are positive; for the last three years,
the Company’s accumulated profits distributed in form of cash shall not be less than
30% of the annual average distributable profit realized for the last three years; upon
the proposal by the Board of Directors and approval by the general meeting, an interim
dividend distribution may be made in the form of cash; the Company may distribute
dividends in the form of shares based on the annual profits and cash flow status and
subject to the satisfaction of the lowest ratio for cash dividend and the reasonableness
of the Company’s equity scale.”
For the last three years (including the Reporting Period), the Company did not have
any plan or proposal regarding capitalization from capital reserve to share capital. The
details of the profit distribution plan or proposal of ordinary shares of the Company
over the last three years (including the Reporting Period) were as follows:
In 2022, the Company distributed cash dividend of RMB4.50 (tax inclusive) per
10 shares based on the Company’s total share capital of 9,075,589,027 shares after
deducting 45,278,495 A Shares deposited in the special account for securities
repurchase and 925,692 A Shares to be repurchased and cancelled (i.e. on the basis
of 9,029,384,840 shares), with the total cash dividend of RMB4,063,223,178.00 (tax
inclusive), representing 36.76% of net profit attributable to the shareholders of the
Parent Company on a consolidated basis for 2022.
In 2023, the Company distributed cash dividend of RMB0.43 (tax inclusive) per
share based on the Company’s total share capital of 9,029,384,840 shares prior to the
implementation of the plan, with the total cash dividend of RMB3,882,635,481.20 (tax
inclusive), representing 30.45% of net profit attributable to the shareholders of the
Parent Company on a consolidated basis for 2023.
In 2024 Interim, the Company distributed cash dividend of RMB0.15 (tax inclusive)
per share based on the Company’s total share capital of 9,027,302,281 shares prior to
the implementation of the plan, with the total cash dividend of RMB1,354,095,342.15
(tax inclusive), representing 25.50% of net profit attributable to the shareholders of the
Parent Company on a consolidated basis for the half year of 2024.
212
In 2024, after comprehensive consideration of factors such as the interests of
shareholders and the development of the Company, the 2024 profit distribution proposal
of the Company is as follows:
1.
The Company will distribute cash dividend of RMB0.37 (tax inclusive) per Share
based on the Company’s total share capital as of the end of the Reporting Period
of 9,027,302,281 shares, with the total cash dividend of RMB3,340,101,843.97
(tax inclusive). The Company effected the interim profit distribution for 2024,
which is a cash dividend of RMB0.15 (tax inclusive) per Share, with the total
cash dividend of RMB1,354,095,342.15 (tax inclusive). The aggregate cash
dividend (including distributed interim cash dividend) of the Company for the
year amounted to RMB4,694,197,186.12 (tax inclusive), resulting in an aggregate
cash dividend of RMB0.52 (tax inclusive) per Share, representing 30.58% of net
profit attributable to the shareholders of the listed company in the consolidated
statements for the year of 2024.
If the total share capital of the Company changes as a result of repurchase and
cancellation of shares granted in the equity incentive during the period from the
disclosure date of this proposal to the record date of the implementation of the
dividend distribution, the Company intends to maintain the distribution ratio per
share unchanged and adjust the total distribution accordingly. The remaining
profits available for distribution to investors will be carried forward to the next
year.
2.
Cash dividend is denominated and declared in RMB and paid to holders of A
Shares (including the depositary of GDRs) and the investors of Southbound
Trading in RMB and to holders of H Shares (excluding the investors of
Southbound Trading) in HKD or RMB. Holders of H Shares (excluding the
investors of Southbound Trading) will be given the option to elect to receive
all (save in the case of HKSCC Nominees Limited, which may elect to receive
all or part of its entitlement) of the dividend in HKD or RMB. Further details
with respect to dividend currency election will be announced in due course. The
actual distribution amount in HKD shall be calculated at the rate of average basic
exchange rate of RMB to HKD issued by the PBOC five business days prior to the
date of the 2024 Annual General Meeting of the Company.
Upon consideration and approval of the profit distribution proposal of the Company for
2024 at the 2024 Annual General Meeting of the Company, the Company will distribute
the cash dividend for 2024 before August 31, 2025.
(II)
Particulars of cash dividend policy
Whether it is in compliance with the requirements of the Articles of
Association or the resolutions of general meetings
√Yes
□
No
Whether the dividend distribution criteria and proportion are
well defined and clear
√Yes
□
No
Whether the relevant decision-making procedures and mechanism are complete
√Yes
□
No
Whether the independent directors fulfil their duties and play their roles
√Yes
□
No
Whether the minority shareholders have the opportunities to sufficiently voice
their opinions and make requests, and whether their legal interests are fully
protected
√Yes
□
No
213
(III) Proposal of profit distribution and share capital increase by way of transfer from
capital reserves during the Reporting Period
Unit: Yuan
Currency: RMB
Number of bonus shares per 10 shares (share)
–
Dividends per 10 shares (Yuan) (tax inclusive)
5.20
Number of increased shares per 10 shares (share)
–
Amount of cash dividends (tax inclusive)
4,694,197,186.12
Net profit attributable to the shareholders of ordinary shares of
the Company in the consolidated statement
14,635,336,947.13
Percentage of amount of cash dividends to net profit attributable
to the shareholders of ordinary shares of the Company in the
consolidated financial statements (%)
32.07
Amount for repurchase of shares under cash included
in cash dividends
–
Total amount of dividends (tax inclusive)
4,694,197,186.12
Ratio of total amount of dividends to net profit attributable to
ordinary shareholders of the listed company in consolidated
statements (%)
32.07
Note:
Net profit attributable to ordinary shareholders of the listed company is net profit attributable
to shareholders of the listed company after deducting the effect of dividends from other equity
instruments and restricted share bonuses. For details, please refer to “19. Basic and diluted
earnings per share” to the “Notes to the Consolidated Financial Statements” under the “Independent
Auditor’s Report and Consolidated Financial Statements” of this report. Based on net profit
attributable to shareholders of the listed company for the year, the percentage of cash dividend for
the year was 30.58%.
(IV) Cash dividends for the last three accounting years
Unit: Yuan
Currency: RMB
Total amount of cash dividends for the last three accounting years
(tax inclusive) (1)
12,640,055,845.32
Total amount for repurchase and cancellation for the last three
accounting years (2)
–
Total amount of cash dividends and that for repurchase and
cancellation for the last three accounting years (3)=(1)+(2)
12,640,055,845.32
Average annual net profit amount for
the last three accounting years (4)
13,051,927,051.72
Cash dividend payout ratio for the last three
accounting years (%) (5)=(3)/(4)
96.84
Net profit attributable to ordinary shareholders of the listed
company in consolidated statements for
the latest accounting year
14,635,336,947.13
Undistributed profit as at the year end of the parent
company’s statements for the latest accounting year
26,611,438,102.44
214
XIX. OTHER INFORMATION
(I)
Company Secretary
Mr. Zhang Hui is one of the joint company secretaries of the Company, while
Ms. Kwong Yin Ping Yvonne, senior vice president of SWCS Corporate Services
Group (Hong Kong) Limited, is the joint company secretary fulfilling the relevant
qualification requirements of the Hong Kong Listing Rules. The company secretary is
mainly responsible for facilitating the operation of the Board, ensuring the effective
communication between the members of the Board and the observation of the policies
and procedures of the Board, and ensuring the compliance with the Hong Kong Listing
Rules and other regulations by the Company. Any Director can discuss with, seek
advice from and obtain information from the company secretary. The primary contact
person for Ms. Kwong Yin Ping Yvonne at the Company is Mr. Zhang Hui.
Each of Mr. Zhang Hui and Ms. Kwong Yin Ping Yvonne has complied with the
requirements of Rule 3.29 of the Hong Kong Listing Rules by receiving relevant
professional training for no less than 15 hours during the Reporting Period.
(II)
Responsibilities of the Directors and Auditors in respect of the Accounts
The following statement of responsibilities of Directors regarding the financial
statements shall be read in conjunction with the responsibility statement of the certified
public accountants included in the audit report of this report. Each responsibility
statement shall be understood separately.
The Board of Directors confirmed that it took responsibility for the preparation of the
annual report of the Group for the year ended December 31, 2024.
The Board of Directors is responsible for presenting a clear and well-defined assessment
of the annual and interim reports, stock price sensitive information, and other matters
that need to be disclosed according to the Hong Kong Listing Rules and other
regulatory provisions. The management has provided relevant and necessary explanation
and information for the Board of Directors so that the Board of Directors could make
informed assessment on the financial data and position of the Group for examination
and approval at the Board meetings.
To the knowledge of all Directors, the Company does not face any events or situations
of significant uncertainty likely to give rise to the significant doubt of the Company’s
capability of sustainable operations. In addition, the Company has arranged appropriate
insurance cover for the legal actions and liabilities which the Directors, Supervisors and
senior management may be exposed to.
215
For the purposes of the United Kingdom’s Financial Conduct Authority’s Transparency
Rule 4.1.12(3), each Director (whose names and functions are listed on page 134 of
this report) of the Company, to the best of their knowledge, confirm the following two
points, respectively:
(a)
the financial statements, prepared in accordance with the applicable set of
accounting standards, give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Company and the undertakings included in the
consolidation taken as a whole; and
(b)
the management report (being this annual report, excluding the financial statements
referred to above (on pages 8-193 of the financial report attached to this report)
and the independent auditor’s report thereon (on pages 1-7 of the financial report
attached to this report)) includes a fair review of the development and performance
of the business and the position of the Group and the undertakings included in the
consolidation taken as a whole, together with a description of the principal risks
and uncertainties that the Group faces.
(III) Performance Assessment Results for Directors and Supervisors
During the Reporting Period, the Directors and Supervisors of the Company had abided
by the relevant provisions of laws, administrative laws and regulations as well as
the Articles of Association, and performed their duties and obligations honestly and
diligently.
All the Directors of the Company have performed their statutory duties honestly,
faithfully and diligently in compliance with laws. They have attended Board meetings,
various meetings of special committees and special meetings for independent directors
in accordance with relevant provisions, considered each proposal seriously, offered
advice and suggestions on significant strategic decisions and plans, important
investment and financing projects, business innovations, related-party transactions,
compliance management and internal control, system construction, appointment of
senior management, performance assessment, enterprise cultural construction and social
responsibilities of the Company, and acted as professional gatekeepers on such issues,
which ensured those material decisions to be scientific and standardized as well as the
sustainable and innovative development of the Company, and preserved the interests of
the shareholders practically.
All the Supervisors of the Company have performed their statutory duties honestly,
faithfully and diligently in compliance with laws. They have attended the meetings of
the Supervisory Committee in accordance with relevant provisions, attended the Board
meetings, considered each proposal carefully, supervised and inspected the legality of
operation, material decisions and important business activities as well as the financial
position of the Company, actively protected the legal interests of the Company and its
shareholders, promoted the legal operation and standardized management, and ensured
the sound development of the Company.
For details on the performance of duties of the Company’s Directors and Supervisors,
please refer to the “Performance of Duties of Directors” and “Performance of Duties of
Supervisors” under this section in this report.
216
(IV) Communication with Shareholders
The shareholders’ general meeting is the organ of the highest authority of the Company,
and the shareholders exercise their rights through the shareholders’ general meeting.
The Company convenes and holds shareholders’ general meetings in strict accordance
with the relevant provisions of the Articles of Association and the Rules of Procedures
for General Meetings to ensure the equal status of all shareholders, in particular the
minority shareholders, and enable them to exercise their rights completely.
The Company pays great attention to the shareholders’ opinions and advice, actively
and regularly carries out various investor relations activities to keep communication
with shareholders and meet their reasonable needs timely. The Company has formulated
a series of relatively perfect rules and regulations such as the Administrative System
Regarding Investor Relationship, to manage investor relationship in accordance with the
standards, systems and procedures.
The Company’s Administrative System Regarding Investor Relationship, namely the
shareholder communication policy of the Company, was reviewed and amended by the
Board on October 28, 2022 to ensure implementation and effectiveness. The Company
confirms that the current Administrative System Regarding Investor Relationship,
namely the shareholder communication policy of the Company, is effectively
implemented by the following measures:
The provisions set out in the Administrative System Regarding Investor Relationship
are designed to ensure that shareholders of the Company, including individual and
institutional investors (collectively, “shareholders”) and, where appropriate, securities
analysts and potential investors, have full and equal access to information about the
Company in due course, thus to help the effective performance of shareholders’ rights,
to enhance communication between shareholders and the Company, and to increase their
understanding and recognition of the Company.
The main channels through which the Company communicates information to its
shareholders are the regular reports, announcements and circulars published on the
websites of the SSE, the HKEXnews website of Hong Kong Stock Exchange, the
website of LSE and the official website of the Company. In addition, the Company
has developed good interaction and communication with its shareholders by means of
holding regular results announcement meetings, opening a service hotline, setting up
an investor relations column on the website of the Company and conducting on-site
research and receptions to ensure timely communication of the relevant information
about the Company to Shareholders and relevant parties.
The Board of Directors of the Company is willing to listen to shareholders’ advice and
encourages shareholders to attend the general meetings to ask the Board of Directors or
the management directly about any doubts they may hold. Shareholders may convene
extraordinary general meetings or submit interim proposals to general meetings
according to the procedures set out in Article 84 and Article 89 of the Articles of
Association, which were published on the website of the Shanghai Stock Exchange, the
HKEXnews website of the HKEX and the Company’s official website. The Company
will arrange for the Board of Directors to answer the shareholders’ questions at its
annual general meeting for 2024.
217
(V)
Investor Relations
The Board of Directors of the Company attached great importance to investor
relations management and was committed to promoting the creation of an open,
transparent, inclusive and sharing atmosphere for investor interaction, and to effectively
safeguarding the legitimate rights and interests of investors. The Company planned,
arranged and organized various activities to manage investor relations with a strong
sense of responsibility, including coordinating on-site interviews to the Company, and
keeping in contact with regulatory authorities, investors, intermediary agencies and
news media and so on.
During the Reporting Period, the Company timely updated information on the “Investor
Relations” column on the Company’s website, and answered inquiries from investors
of the interactive e-platform on the website of the Shanghai Stock Exchange. The
Company has received 42 times of onsite investigations and surveys or telephone
interviews from approximately 229 researchers and investors such as securities
companies and funds companies at home and abroad in the whole year. The Company
also carried out daily consultation work seriously for investors and answered their
questions in detail. Meanwhile, to assist the issuance of the periodic reports, the
Company held 2 presentations for operating performance and 3 online briefings on
performance, and proactively attended strategy seminars and investment forums held
by domestic or foreign financial institutions. It attended 10 strategy seminars and
investment forums during the Reporting Period and maintained full communications
with investors and researchers on issues such as the development trend of the industry,
operational results of the Company as well as its business development strategy, which
effectively promoted investors’ and researchers’ understanding of the business condition
and result performance of the Company, completely marketed the development
advantages of the Company, and correctly guided market expectations. The Company
persisted in inducing and analyzing various questions proposed by investors to improve
the professionalism, normalization and the quality of investor relations management of
the Company.
218
The Company’s reception of investigations and surveys, communications and
participation in strategy seminars and investment forums held by domestic or overseas
financial institutions in the year of 2024 are as follows:
No.
Date of reception
Meeting name
Way of reception
Guests
Major topics
discussed and
information
provided
1
January 4, 2024
Institutional
investigations and
surveys
Onsite interview
Guosen Securities
(1 person)
Business highlights,
operations
and financial
performance, and
long-term strategic
planning of the
Company.
2
January 8 to 9,
2024
UBS Greater China
Conference
Onsite interview
UBS Securities, Principal Global
Investors, Fullerton Fund
Management, JP Morgan
Asset Management, eQ Asset
Management, Point 72, Infini
Capital Management, Blackrock,
etc. (17 persons)
3
January 11, 2024
Institutional
investigations and
surveys
Onsite interview
Zheshang Securities, Harvest Fund,
Huachuang Captive, China
Asset Management, Starock
Investment, JF SmartInvest,
Taikang Funds, ZhongAn
Insurance, etc. (11 persons)
4
January 11, 2024
Institutional
investigations and
surveys
Telephone interview
Founder Securities, Pengyang
AMC, Zhong Ou AMC,
Tianhong Asset Management,
China Securities, CICC
Fund, ICBCCS, China Asset
Management, etc. (15 persons)
5
January 12, 2024
Institutional
investigations and
surveys
Telephone interview
BofA Securities, Schroders, Citadel
Investment, Pinpoint Fund,
Marshall Wace, Ruitong Asset
Management, Oaktree Capital
Management (8 persons)
6
January 16, 2024
Institutional
investigations and
surveys
Telephone interview
Citibank, Abu Dhabi Investment
Authority, AllianceBernstein,
Mirae Asset Management,
China Investment Corporation
(CIC), Citadel International,
Millennium Capital
Management, Nanshan Life (8
persons)
7
January 22, 2024
Institutional
investigations and
surveys
Telephone interview
HSBC, Bank of China (Hong
Kong), Citadel Investment,
China Investment Corporation
(CIC), HSBC Jintrust Fund,
Pinpoint Asset Management,
Metlife China (9 persons)
219
No.
Date of reception
Meeting name
Way of reception
Guests
Major topics
discussed and
information
provided
8
January 30, 2024
Institutional
investigations
and surveys
Telephone interview
Fullgoal Fund (1 person)
9
March 29, 2024
Presentation for
2023 Annual
Results of HTSC
Video and telephone
interview
UBS Securities, CITIC Securities,
CICC, Morgan Stanley, J.P.
Morgan, HSBC, BofA Securities,
Citibank, Founder Securities
(more than 800 persons)
10
April 3, 2024
Institutional
investigations
and surveys
Video interview
Wellington (1 person)
11
April 9, 2024
Institutional
investigations
and surveys
Onsite interview
Cinda Securities (2 persons)
12
April 15, 2024
Institutional
investigations
and surveys
Teleconference
GF Securities, HuaAn Funds (2
persons)
13
April 16, 2024
Institutional
investigations
and surveys
Teleconference
GF Securities, Point72, M&G,
HSBC Jintrust, Harvest Fund (5
persons)
14
April 17, 2024
Institutional
investigations
and surveys
Onsite interview
Hongsike Asset Management,
Ningbo Zhiyuan Investment,
Shenzhen Wanchuan Fund,
Fanhai Investment (8 persons)
15
April 17, 2024
Institutional
investigations
and surveys
Teleconference
GF Securities, Penghua Fund, E
Fund, ICBCCS (4 persons)
16
April 18, 2024
Institutional
investigations
and surveys
Teleconference
GF Securities, Guotai Fund (2
persons)
17
April 19, 2024
Institutional
investigations
and surveys
Teleconference
GF Securities, BOC Investment
Management (2 persons)
18
May 7, 2024
Institutional
investigations
and surveys
Teleconference
GF Securities, Millennium Capital,
HSBC Life Insurance, Industrial
Bank, Chasing Securities,
Kaiyuan Securities, Yuekai
Securities, Manulife Fund,
Rongtong Fund, etc. (23 persons)
19
May 8, 2024
2024 spring-summer
strategy forum of
Founder Securities
Onsite interview
Founder Securities, TF Asset
Management, China Life
Investment, etc. (7 persons)
220
No.
Date of reception
Meeting name
Way of reception
Guests
Major topics
discussed and
information
provided
20
May 9, 2024
2024 interim
strategy forum
of Changjiang
Securities
Onsite interview
Changjiang Securities, BlackRock,
China Universal Asset
Management, etc. (8 persons)
21
May 13, 2024
Institutional
investigations
and surveys
Onsite interview
Zhong Ou AMC (2 persons)
22
May 14, 2024
Institutional
investigations
and surveys
Teleconference
BlackRock, BofA Securities (2
persons)
23
May 17, 2024
Institutional
investigations
and surveys
Onsite interview
CICC (2 persons)
24
June 4, 2024
Institutional
investigations
and surveys
Onsite interview
Sinolink Securities (1 person)
25
June 5, 2024
Institutional
investigations
and surveys
Onsite interview
Guotai Junan (1 person)
26
June 6, 2024
CITIC Securities
2024 Capital
Market Forum
Onsite interview
CITIC Securities, Zhida Asset
Management, Taofu Asset
Management, Harvest Fund,
Zhong Ou AMC, Wealspring
Asset, Caitong Asset
Management, Yinhua Fund,
ABC-CA Fund, Golden Nest
Capital, Wanjia Asset, Broad
Asset (14 persons)
27
June 14, 2024
Zheshang Securities
2024 Second Quarter
Meeting of Exchange
on Major Holdings
of Institutions
Onsite interview
Zheshang Securities, Changjiang
Asset Management, Zhongcai
Merchants Investment,
Hongchou Investment
(4 persons)
28
July 9, 2024
Institutional
investigations
and surveys
Onsite interview
Cinda Securities, Taikang Asset
Management (4 persons)
29
July 9, 2024
Institutional
investigations
and surveys
Telephone interview
J.P. Morgan (1 person)
30
July 15, 2024
Institutional
investigations
and surveys
Onsite interview
BofA Securities, APS, CIC Hong
Kong, Millennium, Aberdeen
plc, GSAM, Morgan Stanley
Asset Management, Point72 (9
persons)
221
No.
Date of reception
Meeting name
Way of reception
Guests
Major topics
discussed and
information
provided
31
July 26, 2024
Institutional
investigations
and surveys
Telephone interview
Prudential plc (1 person)
32
September 2, 2024
Presentation for
2024 Interim
Results of HTSC
Video and telephone
interview
Morgan Stanley, UBS Securities,
BofA Securities, Goldman,
Guotai Junan, CLSA, GF
Securities, China Merchants
Bank, Citadel Asia Limited,
Greenwoods Asset, DBS, CITIC
Securities, ICBC International,
etc. (more than 500 persons)
33
September 9, 2024
The 31st CITIC
CLSA Investors’
Forum
Onsite interview
Aequitas Investments IFSC Pri,
Alquity Investment Management
Limited, Columbia Threadneedle
Inv, Matthews Asia, Robeco
AM, Millennium Partners Group,
NAN FUNG GROUP, TD
AM, Aberdeen Group, CIC (11
persons)
34
September 10, 2024
Institutional
investigations
and surveys
Telephone interview
GF Securities, Brilliance Capital
Management Ltd, Wealspring
Asset Management, Hedao Asset
Management, Ren Bridge Asset
Management, HSBC Life, Orient
Securities Asset Management,
etc. (19 persons)
35
September 19, 2024
Institutional
investigations
and surveys
Onsite interview
Fullgoal Fund (1 person)
36
September 19, 2024
Institutional
investigations
and surveys
Onsite interview
ICBCCS (1 person)
37
September 19, 2024
Institutional
investigations
and surveys
Onsite interview
Changjiang Securities (2 persons)
38
September 20, 2024
Institutional
investigations
and surveys
Onsite interview
GF Securities, CITIC Asset
Management, CCB Principal
Asset Management (4 persons)
39
September 24, 2024
Institutional
investigations
and surveys
Onsite interview
Industrial Securities (1 person)
222
No.
Date of reception
Meeting name
Way of reception
Guests
Major topics
discussed and
information
provided
40
September 24, 2024
Institutional
investigations
and surveys
Teleconference
Founder Securities, Life Insurance,
Futurus Vessel, Taikang Asset,
Orient Securities Proprietary,
Zheshang Fund, Pacific Asset
Management, CICC Fund,
Everbright PGIM, HSBC
Jintrust, Haojun Investment (12
persons)
41
September 27, 2024
UBS Asia Pacific
Finance, Fintech
and Real Estate
Company Day
Onsite interview
UBS Securities, CIC (2 persons)
42
October 8, 2024
Institutional
investigations
and surveys
Teleconference
Greenwoods Asset (2 persons)
43
November 5, 2024
Citi China Investment
Summit 2024
Onsite interview
Citibank, Pedder Street Investment
Management, Turiya Advisor
Asia, Citadel International
Equities (5 persons)
44
November 6, 2024
Institutional
investigations
and surveys
Teleconference
Sinolink Securities, Hongde
Fund, Guangdong Guangjin
Investment, Shanghai Chaos
Investment, New China Fund,
Cathay Securities Investment
Trust, Shanghai Wealspring
Asset Management, Heji
Investment Fund, China Asset
Management, etc. (13 persons)
45
November 6, 2024
Institutional
investigations
and surveys
Teleconference
Guosen Securities, Dawn Petrel
Asset, Shanghai Homey Asset
Management (6 persons)
46
November 7, 2024
Institutional
investigations
and surveys
Teleconference
GF Securities, Wealspring Asset,
Pinpoint Investment, Point72,
China Merchants Fund,
HZBANK Wealth Management,
Sumitomo Mitsui Asset
Management (SMAM), etc. (27
persons)
47
November 11, 2024
Institutional
investigations
and surveys
Teleconference
BofA Securities, HSBC (2 persons)
223
No.
Date of reception
Meeting name
Way of reception
Guests
Major topics
discussed and
information
provided
48
November 13, 2024
CITIC Securities
2025 Capital
Market Annual
Conference
Onsite interview
CITIC Securities, E Fund, CLSA,
China Re Asset Management,
Shanghai Qingxi Industrial
Development, Shenzhen
Qianhai Xinuo, Point72, Dehui
Investment (11 persons)
49
November 14, 2024
Institutional
investigations
and surveys
Teleconference
BofA Securities, Morgan Stanley
Investment Management,
AllianceBerstein, CIC Hong
Kong, BEA Union Investment
Management, Victory Capital
Management, Pinpoint Fund (7
persons)
50
November 15, 2024
Institutional
investigations
and surveys
Teleconference
Prudential plc (1 person)
51
November 15, 2024
Institutional
investigations
and surveys
Onsite interview
Fullgoal Fund (1 person)
52
December 13, 2024
Institutional
investigations
and surveys
Onsite interview
Huachuang Securities (1 person)
53
December 16, 2024
Institutional
investigations
and surveys
Onsite interview
CICC (2 persons)
54
December 19, 2024
Forecast – GF
Securities Closed-
door Exchange
Meeting of Listed
Companies 2025 (
預
見
2025
廣發証券上
市公司閉門交流會
)
Onsite interview
HSBC Jintrust, BOSC Asset
Management, Zhong Ou AMC
Company, PICC Asset, China
Asset Management, AIA
Life, Heng An Standard Life
Insurance, etc. (17 persons)
(VI) Corporate Cultural Construction
The Company strives to become a first-class investment bank with both domestic
advantages and global influence, always adheres to “high efficiency, integrity,
stability and innovation”, is committed to the service philosophy of “One Customer”
internally and “One Huatai” externally, spares no effort in being accountable to all
clients, shareholders, staff and society to achieve harmony and unity. The Company
continuously strengthened the cultural characteristics of “technology empowerment,
innovation and initiative”, gradually cultivating an “open and inclusive” cultural
atmosphere that is “positive and innovative” and let the corporate spirit of “openness,
inclusiveness, innovation, dedication and responsibility” be internalized within and
manifested in actions.
224
The Reporting Period marked a year for the Company to go further in cultural
construction. In addition to continuously practicing the cultural concept and following
the Ten Elements of Cultural Construction of the Securities Industry (
《證券行業文化建
設十要素》
), the Code of Ethics for Securities Practitioners (
《證券從業人員職業道德準
則》
) and other documents, the Company mainly focused on the requirements of “Five
Musts and Five Don’ts (“
五要五不
”)” on financial culture with Chinese characteristics
and made deployment to implement relevant work. During the Reporting Period, the
Company issued the Guiding Opinions on Implementation of Major Decisions and
Deployments of the Party Central Committee Concerning Acceleration of Building a
Financial Powerhouse and High-Quality Development of Finance (
《貫徹落實黨中央關
於加快金融強國建設和金融高質量發展重大決策部署的指導意見》
), which provides
clear guidelines for the Company to enhance the quality and efficiency of its financial
services for the real economy, to do a good job in “Five Major Areas of Finance (“
五
篇大文章
”)” and to put into practice the financial culture with Chinese characteristics.
The Company convened a special meeting on cultural construction and considered
the Work Progress of Huatai Securities in Doing a Good Job in “Five Major Areas of
Finance” and Putting into Practice the Financial Culture with Chinese Characteristics
(
《華泰證券紮實做好
“
五篇大文章
”,
踐行中國特色金融文化的工作進展》
), which
further clarifies the direction for the Company to follow the relevant requirements,
profoundly put into practice the “five musts and five don’ts” on financial culture with
Chinese characteristics, and firmly stick to the road of developing finance with Chinese
characteristics.
The Company focused on integrating cultural construction into its operation and
development, translating the advantages of corporate culture into the value creation
strengths to serve the real economy, and coexisting with the economy and society
to achieve common prosperity and integrated development. The Company organized
and carried out corporate culture promotion and publicity activities through various
effective methods and channels within and beyond the Company via online and offline
manners, and the content publicized were highly consistent with the Company’s
cultural connotations and business management philosophy. The Company launched
publicity activities under the theme of “Carrying Forward Financial Culture with
Chinese Characteristics” and published relevant articles in mainstream media such as
People’s Daily Online Jiangsu Channel, China Securities Journal, Xinhua Daily, etc.
Moreover, the Company carried out various activities such as the initiative of “Actively
Cultivating and Carrying Forward Financial Culture with Chinese Characteristics” and
series propaganda in risk culture month for all employees, conducted training under
the theme of “Bearing in Mind Responsibility and Discipline and Setting Standards to
Contribute to Nation Rejuvenation in the Future” (
知責明紀立標尺強國有我啟未來
)
for young employees, and convened the commendation ceremony of “Shining Huatai, A
Promising Future” (
星光華泰閃耀未來
), to specifically inspire and motivate employees
to consciously practice the cultural concepts of the industry and the Company. The
Company also worked to build differentiated cultural brands with innovative thinking.
Through organizing special projects such as convening series cultural salon activities,
producing open courses on behavioral finance, and introducing excellent cultural
construction cases to the case pool of leading universities and colleges, the Company
constantly enhanced its professional influence in various fields, further strengthened the
cultural identity of its employees, and promoted its steady development.
225
The Company always attaches importance to the feedback from internal and external.
It carries out “Employee Reception Day” activities online and offline every month,
and put in place a special post named “Freely Talk Inner Voices, Offer Help with
Same Empathy” (
暢談心聲共情同力
) in the special column of “Colleague Bar (
同事
吧
)”, an instant messaging APP online, to optimize regular interactive communication
mechanism between the Company’s leaders and employees. Meanwhile, a sound
and effective feedback supervision system has been established to strengthen the
communication and feedback for relevant issues.
The Company pays attention to the establishment and optimization of financial and
non-financial reward measures for cultural construction, with organizations, systems,
personnel, funds and platform put in place to foster a virtuous working mechanism led
by the headquarter, cooperated by the Group and participated by all staff. During the
Reporting Period, the Company carried out various commending activities to stimulate
talents to be innovative and vigorous, improve their value and empower their growth;
at the same time, the Company also adopted effective measures to encourage its staff
to participate in the trainings in relation to culture and professional ethics, so as to help
its staff develop the awareness of conscious protection of state’s financial safety and
enhancement on social responsibility.
In the new journey of serving high-quality development, the Company has continuously
demonstrated its new role, new performance and new image, and constantly enhanced
its cultural influence and industry reputation. During the Reporting Period, the Company
was awarded 2024 Jinding Award of “Outstanding Cultural Construction Case” by
National Business Daily, its “Tai Youth” Party building culture case was selected in
the “2023 Annual Report on Cultural Construction of the Securities Industry” (
《
2023
年證券行業文化建設年報》
), and the “Research on Prevention of Integrity Risks of
Investment Banking Business and Construction of Integrity Culture” (
《投資銀行業
務廉潔風險防範與廉潔文化建設研究》
) launched by the Company was awarded the
First Prize of 2024 Outstanding Research Results of Ideological and Political Work and
Cultural Construction of the Financial System of China (2024
年全國金融系統思想政
治工作和文化建設優秀調研成果一等獎
).
(VII) Independence of the Auditor
According to the relevant provisions in Rule 19A.31 of the Hong Kong Listing Rules,
annual accounts should be audited by a prestigious certified public accountant (whether
it is an individual, a firm or a company), who (whether it is an individual, a firm or
a company) also should be independent of the Chinese issuer to the extent that its
independent procedures should be substantially the same as those specified in the
statements on independence issued in the Companies Ordinance or by the International
Federation of Accountants. According to the relevant provisions in Rule D.3.3 of the
Corporate Governance Code as set out in Appendix C1 to the Hong Kong Listing Rules,
the Audit Committee should review and monitor the independence and objectiveness
of external auditors as well as the validity of the auditing process in accordance with
applicable standards. During the Reporting Period, the Company re-appointed Deloitte
Touche Tohmatsu Certified Public Accountants LLP as the auditors of A Shares and
Deloitte Touche Tohmatsu as the auditors of H Shares. The Audit Committee had
carried out necessary review and supervision to ensure the independence between the
firms and the Company.
226
(VIII)
Auditor
’
s remuneration
For auditor’s audit service fee during the Reporting Period, please refer to “Auditors”
under “Other Disclosures” in the section headed “Management Discussion and Analysis
and Report of the Board” in this report.
During the Reporting Period, the Company and its subsidiaries employed Deloitte
(including other members within the Deloitte network) to provide non-auditing services,
such as agreed procedures and advisory service, and the fees for such non-auditing
services were RMB1.8974 million.
(IX) During the Reporting Period, there were no changes to the Company
’
s management
measures for information disclosure.
227
ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES
I.
ENVIRONMENTAL INFORMATION
Currency: RMB
Establishment of environmental protection-
related mechanisms
Yes
Investment in environmental protection funds
during the Reporting Period (unit: Ten Thousand Yuan)
396.98
(I)
The Company and its major subsidiaries are not in the list of attention units
discharging pollutants published by the environmental protection authority
(II)
Description of the environmental protection of enterprises excluding attention units
discharging pollutants
1.
During the Reporting Period, the Company was not subject to any administrative
penalty arising from environmental issues
2.
Other environmental information with reference to disclosures of attention units
discharging pollutants
The Company is a financial company, which is not in the list of attention units
discharging pollutants and their major subsidiaries published by the environmental
protection authority. The Company entrusts qualified third-party organizations
to conduct inspections for the wastewater, exhaust gases and noises of the
headquarters office every year. All inspections are in line with the national
standards.
228
(III) Relevant information beneficial to protecting ecosystem, preventing pollution and
performing environmental responsibilities
The Company actively responds to the Nanjing Municipal Domestic Waste Management
Regulations and sets waste sorting points on each floor. It publicizes the concepts
and practice on waste sorting among staff through pasting posters on waste sorting
and playing videos on waste sorting repeatedly in elevators to create an atmosphere
of “waste sorting with all participation” and form a habit of actively sorting and
consciously putting waste among employees. The Company disposed waste by
upholding the concept of “waste recycling and value innovation”, encouraged reuse of
waste materials and entrusted qualified units for the recycling and treatment of non-
hazardous and hazardous wastes and wastewater. The Company discharged office
wastewater into the municipal sewage pipeline to be disposed of by the municipal
wastewater treatment plant, and required the property management center to clear
and transport office waste. Electronic waste, light tubes, toners, cartridges and other
hazardous waste entrusted to qualified units for recycling, disposal or reuse by the
recycling party. The Company optimized the allocation of fixed asset resources and
improved the utilization rate of existing assets to avoid idle waste. The Company used
the original finishes of offices as much as possible to reduce non-necessary depletion
and consumption, and transferred idle physical assets to other units in need for use
through the physical asset system, so as to enhance the efficiency of asset utilization.
During the year, a total of 1,899 equipment was transferred.
As specified in the vehicle management system by the Company, new energy vehicles
shall be given priority when purchasing vehicles for corporate affairs and operation of
the Company to practice low-carbon and environmental operation. The underground
garage of Huatai Securities Square is equipped with charging piles for new energy
vehicles to encourage employees to practice green commuting and advocate green and
environmental concepts.
The Company has established and continues to optimize its energy management system,
using the digital platform to provide targeted guidance for the commencement of energy
conservation work. At present, the energy management system carries out statistical
analysis of the electricity consumption of all electrical equipment in Huatai Securities
Square by area, function (air-conditioners, elevators, lighting, kitchen electricity, etc.)
and time (year-on-year, quarter-on-quarter/month-on-month), automatically generates
statistical data charts and realizes the visualization of the trend of energy consumption,
which makes it easier to determine the peaks and valleys of electricity consumption,
improve the level of energy-saving operation and management, enhance the efficiency
of management and the efficiency of energy utilization, and effectively promote energy
saving and emission reduction.
The Company promoted paperless office based on the OA system, the electronic
signature platform, intelligent business travelling and other platforms, and used
environmental-friendly paper for business card production and report printing. The
Company actively advanced online procurement, with multiple systems for procurement,
contract and payment operating in parallel to fully realize the whole process of online
and standardized procurement of office supplies and promotional items, significantly
reducing the use of paper materials in the whole process.
229
(IV) Measures adopted for reducing its carbon emission during the Reporting Period
and their effects
Adoption of carbon reduction measures
Yes
Reduction of carbon dioxide equivalent emissions
(unit: tons)
56.46
Type of carbon reduction measures (e.g. use of clean
energy for power generation, use of carbon reduction
technologies in the production process, R&D and
production of new products that help reduce carbon
emissions, etc.)
Use of clean energy for
power generation
and carbon reduction
technologies in data
centers
230
Detailed description
Principal methods
Specific measures
Adopting clean energy
•
Reduced carbon emissions of office areas through various
measures such as sunlight induced lighting device system,
air-conditioning ice storage air system, underfloor air
distribution system and intelligent lighting control in the
office areas.
•
Headquarters of the Company are equipped with
photovoltaic power generation systems, generating 89,841
kWh of electricity in 2024 with photovoltaic power
generation systems.
Promoting energy
conservation and
emission reduction
•
Optimized and upgraded the energy management system,
regularly analyzed the energy consumption and enhanced
the control over energy consumption.
•
Continuously promoted energy-saving renovation.
Certain precision air conditioners with significant cooling
capacity decline have been modified by frequency
conversion and fans installation, reducing energy
consumption by approximately 22%. For some overheated
areas, renovation was made to their return airflow to
optimize the return airflow and improve the efficiency of
cooling capacity utilization.
•
The air conditioning system used ice storage cold air, the
underfloor air distribution system and other technologies,
which gave full play to the energy conservation efficiency
of low-temperature air distribution.
•
Universally applied low-energy LED lighting in office
lighting to achieve significant savings in electricity
consumption for daily office lighting.
•
Used video meeting systems to reduce the number of on-
site meetings and carbon emissions from business travel.
•
Practiced the concept of garden office, expanded the
area of greenery planting, adopted new construction
materials and followed the concept of green, novelty and
environmental protection.
•
Carried out asset allocation, recycled office supplies such
as computers.
231
Principal methods
Specific measures
Advocating green
travel
•
Formulated relevant documents such as the
Administrative Rules for Motor Vehicles and gave
priority to purchasing new energy vehicles.
•
Installed new energy charging piles for new energy
vehicles and electric vehicles in underground garages of
office parks to encourage green modes of travel.
Green data center
•
Built a low-carbon data center through measures such as
improving the heat dissipation efficiency of equipment
and renovating air-conditioning rooms for light and heat
insulation.
•
With the goal of creating a green data center, Huatai
Securities Square Data Center continued to take various
measures to improve energy efficiency from pre-
construction to post-operation.
•
In terms of resource deployment, the Company continued
to promote cloud-based business, with approximately 440
physical servers offloaded in 2024.
Green office buildings
•
Huatai Securities Square received the LEED-NC Gold
Certification issued by the United States Green Building
Council (USGBC), demonstrating the recognition for its
resource and energy use efficiency.
•
In 2024, the Company actively and consistently
implemented energy saving and emission reduction
policies, and constructed a new R&D center in accordance
with the criteria for China Green Building Three Stars and
sponge city, whose comprehensive energy-conservation
building standard is ≥65%.
Strengthening
emergence
management
•
Established and improved emergency management
measures, implemented a 24-hour duty and accident
information reporting system for security personnel, and
purchased emergency equipment to effectively minimize
the impact of extreme weather on company operations.
232
II.
SOCIAL RESPONSIBILITIES
The Company is a financial company in Shanghai, Hong Kong and London. While disclosing
its 2024 Annual Report, the Company will also disclose the 2024 Corporate Social
Responsibility Report of Huatai Securities Co., Ltd., which will be published on the website
of SSE (www.sse.com.cn), the HKEXnews website of HKEX (www.hkexnews.hk), the
website of LSE (www.londonstockexchange.com) and the website of the Company (www.
htsc.com.cn) on March 29, 2025.
In 2024, in the ESG rating of Morgan Stanley Capital
International (MSCI), the MSCI ESG rating of the Company
rose from AA to AAA, realizing upgrades for two consecutive
years and achieving the highest rating in the global investment
banking industry.
Rating
The highest rating in
the global investment
banking industry
Currency: RMB
External donations, public welfare projects
Number/Content
Description
Total investment (Ten Thousand Yuan)
1,553.41
Total investment in public welfare and charity
projects of the Company
Of which: Funds (Ten Thousand Yuan)
1,553.41
Total investment in public welfare and charity
projects of the Company
Material equivalent
(Ten Thousand Yuan)
–
–
Number of persons benefited (people)
–
Please refer to the description below this table
Description: The Company deeply cultivates the “One Commonweal Heart of Huatai One Yangtze River”
ecological conservation program, and continuously carried out biodiversity protection, with approximately 7,000
persons benefited from the program. Through the “Streamlet Action – ‘One Yangtze River’ Subsidy Scheme
on Environmental Protection Activities for College Students”, the “Little Step” Support Program for Young
Movers under the “One Yangtze River” and the Research and Improvement Workshop of Talents for Sustainable
Development under the “One Yangtze River”, the Company built a targeted cultivation system for the growth
of talents at various stages in the environmental protection and public welfare industries, with approximately
300 persons benefited. The Company gathered more partners to contribute to the diversified driving force for
sustainable development through the Huatai Foundation. In 2024, the Huatai Foundation participated in the
evaluation of social organizations in Jiangsu Province for the first time, and was awarded the highest rating of
5A.
233
(I)
Strengthening ESG Governance to Improve System Efficiency
1.
Deepening ESG Concepts
With the goal of becoming a “leader in sustainable development in the securities
industry”, the Company made concrete efforts in the “Five Major Areas of
Finance” (
五篇大文章
) of financial work by deeply integrating ESG concept
into its strategy, operation management and business practices, actively built a
sustainable governance system, strengthened its ESG governance capability, and
continuously promoted the process of its own sustainable development.
Responsibility Principles
of Huatai Securities
Respect of Society
Satisfaction of Shareholders
Pride of Employees
Trust of Customers
The Company always places its customers
at the center and strives to create value for
its customers, so as to win their trust with
high-quality financial services.
The Company values people that are both
talented and morally respectable, for whom
it has built a systematic and all-round career
development platform and fostered an
optimistic corporate culture, so as to achieve
common growth with its employees.
The Company standardizes its corporate
governance structure and attaches great
importance to risk management and
compliant operation, aiming to achieve a
stable increase in asset value and ensure
sustainable returns to its shareholders.
The Company values the harmonious development
of the financial system and the society, gives full
play to its professional strengths to facilitate social
advances. It also actively participates in social
welfare promotion and green development,
fulfilling its responsibilities as a corporate citizen.
2.
ESG Management Structure
The Company has integrated ESG factors into its development strategy, set up
an ESG Committee under the direct leadership and management of the Board
of Directors and senior management of the Company, continued to optimize
its ESG management structure, constructed a highly efficient and collaborative
ESG management mechanism with the linkage between upper and lower levels,
and comprehensively enhanced the systematicness and effectiveness of its
ESG management. The Company established a professional ESG management
team under the ESG Committee and arranged ESG working officers in relevant
departments of the headquarters and in subsidiaries to perform the prescribed
duties, thereby forming an ESG management system with clear division, clear
responsibilities and efficient operations to ensure the solid promotion and effective
implementation of ESG works.
234
ESG Management Structure of Huatai Securities
Board of
Directors
Senior
management
ESG Committee
(with the CEO serving as the chairman and the
Secretary to the Board as the deputy-chairman)
Permanent members
(persons-in-charge of relevant
departments and subsidiaries)
Professional
members
ESG Management Team
Persons-in-charge of other
relevant departments and
subsidiaries and backbone
members with expertise knowledge
and professional capabilities in ESG
Fixed Income Department
Research Institute
Human Resources
Department
Risk Management
Department
Strategy and
Development Department
Huatai United
Securities
Huatai Asset
Management
Huatai International
Huatai Purple Gold
Investment
Supervision le
vel
•
Fully supervise ESG-related af
fairs
Management le
vel
•
Formulate ESG strategies for the Company
•
Evaluate the importance of ESG-related affairs
which will be taken into consideration in
b
usiness operations
•
Supervise the implementation and progress
of ESG strategies
•
Identify ESG-related opportunities and risks
Execution le
vel
•
Actual implementation of
ESG-related work
3.
ESG Management Systems
The Company continued to improve its ESG management system and made
commitments in terms of safeguarding employees’ rights and interests,
improvement of employee ethics, supplier management, data and information
protection, and responsible investment, etc. In 2024, with reference to relevant
national environmental protection laws and regulations, the Company compiled
and issued the Sustainable Investment and Financing Policy for Environment-
Sensitive Industries of the Company (
《公司環境敏感型行業可持續發展投融資
理念》
), which elaborates the Company’s principles of sustainable investment and
financing in environment-sensitive industries, such as agriculture, forestry and
mining, and fully reflects the Company’s concrete actions to integrate the ESG
concept into its investment and financing business. As of the end of the Reporting
Period, the Company had totally issued 9 statements and announcements relating
to ESG, for details of which, please refer to the “Sustainability – Statements and
Announcements” column in the official website of Huatai Securities.
235
(II) Building a Modernized Governance System to Ensure Long-term Stable
Development
In strict compliance with the requirements of relevant laws and regulations such as the
Company Law of the People’s Republic of China, the Securities Law of the People’s
Republic of China and the Rules for Corporate Governance of Listed Companies,
the Company has established a structure of modern enterprise organization and an
operation mechanism with the General Meeting, the Board of Directors, the Supervisory
Committee and the senior management. The Rules of Procedures for General Meetings,
the Rules of Procedures for the Board of Directors, the Rules of Procedures for the
Supervisory Committee and the Terms of Reference of the CEO and the Executive
Committee were developed and improved. It follows the principles of independent
operation, effective checks and balances, mutual cooperation and coordinated operation
of various governance bodies and improves the operation mechanism of the Meetings
and the management to improve its corporate governance efficiency.
In strict compliance with the Administrative Measures for Information Disclosure
of Listed Companies (
《上市公司信息披露管理辦法》
) issued by the CSRC and
other relevant legal norms and requirements, the Company continuously improved
its information disclosure policies and systems. To regulate information disclosure
practices, and ensure the legality and compliance of all aspects of its information
disclosure processes, the Board of Directors has formulated and improved a series of
systems and management methods, such as the Management Measures for Information
Disclosure and the System regarding Insider Registration and Management and
Confidentiality, so as to disclose all information in a truthful, accurate, complete
and timely manner, and to ensure that all shareholders have equal access to relevant
information of the Company.
By fully implementing the new guideline on strengthening regulation, forestalling
risks and promoting the high-quality development of the capital market (
新
“
國九條
”)
and the “1+N” policy requirements of the capital market, the Company continuously
improves its compliance policies and systems and strictly controls risks across all areas.
In 2024, in accordance with the latest laws, regulations, and regulatory requirements,
the Company further refined its compliance framework. It developed and improved
internal rules and regulations in various domains, including comprehensive compliance
management, OTC derivatives, proxy sale of financial products, anti-money laundering,
management and control of programmed transactions, and legal proceedings. These
efforts ensure that all types of business would be “well operated” with risks “visible and
controllable”.
The suppliers of Company mainly include those related to IT hardware, IT software,
products for project construction, comprehensive materials, products for Internet
marketing and promotion, information products and relevant services. The Company
strictly complies with the laws and regulations such as the Tendering and Bidding Law
of the People’s Republic of China (
《中華人民共和國招標投標法》
) and the Government
Procurement Law of the People’s Republic of China (
《中華人民共和國政府採購法》
),
and has formulated rules and policies such as the Procurement Management Measures of
Huatai Securities Co., Ltd. and the Code of Conduct on Suppliers of Huatai Securities
Co., Ltd., which put forward clear requirements for suppliers in terms of compliance
and ethics standards, anti-corruption, environmental protection and employees’ interests.
It improves the management policies and systems of the supply chain to regularize and
standardize the procurement process.
236
The Company complied with various requirements on financial marketing publicity and
product advertisement stipulated by the Advertisement Law of the People’s Republic
of China (
《中華人民共和國廣告法》
), the Notice on Further Standardizing Financial
Marketing Publicity (
《關於進一步規範金融營銷宣傳行為的通知》
), the Measures for
Supervision and Administration of the Sales Organizations of Securities Investment
Funds in Public Offering (
《公開募集證券投資基金銷售機構監督管理辦法》
) and
the Interim Regulations on the Administration of Publicity and Referral Materials of
Securities Investment Funds in Public Offering (
《公開募集證券投資基金宣傳推介
材料管理暫行規定》
), and formulated and implemented the Administrative Measures
for Marketing Publicity Activities (
《規範營銷宣傳管理辦法》
) and the Administrative
Measures for Proxy Sale of Financial Products (
《金融產品代銷管理辦法》
). The
company consistently adheres to a rigorous and compliant approach, striving to deliver
the highest quality and most authentic service experience to its clients. It strictly
manages marketing and referral materials and activities from marketing staff, and
specifies the standard of publicity materials from preparation, review and use, as well as
the special requirements on the code of conduct on marketing and publicity marketing
of financial products. The Company has established diversified information channels,
including the “Publicity and Information Disclosure” column and the “ZhangLe Fortune
Path”. It continues to refine its internal control systems for financial product advertising
and marketing management, strengthening internal supervision and risk prevention.
(III) Implementing Responsible Finance to Hold the Bottom Line of Risk Prevention
and Control
The Company strengthened ESG risk management construction, formulated and
implemented the evaluation system of ESG due diligence system for clients. The
Guidelines for Due Diligence on Clients’ Environmental, Social and Corporate
Governance (ESG) (the “Clients’ ESG Due Diligence Guidelines”) set up evaluation
indicators and scoring rules with operability on environmental, social and governance
aspects, specified the identification, tracking and escalation mechanism for clients’
ESG risks in financing, private equity investment and investment banking businesses,
effectively identified, analyzed and managed possible ESG risks of clients and
prevented the conversion of clients’ ESG risks into the credit risk of the Company.
The Company continued to improve technology on ESG risk and optimize the ESG key
functional module of the CAMS system. As a supplement to traditional credit analysis,
relevant ESG factors have been incorporated into the CAMS credit analysis framework.
Through a combination of big data, natural language processing (NLP) technologies,
big models and manual rules, the Company established a multi-dimensional alarming
system covering public opinions, announcements and self-constructed special data. The
CAMS system has established a linkage mechanism with negative ESG-related public
opinions and credit qualification scores. The triggering of ESG alarming signals will
affect the entity credit qualification scores and further affect the investment access
decision based on scores.
237
The Company has integrated the ESG concept into its long-term development strategy,
and actively promotes the in-depth integration of ESG and the principles of responsible
investment to facilitate the orderly development of the Company’s sustainable
investment and financing business. Based on the Responsible Investment Statement
of Huatai Securities Co., Ltd. (2021 Revision), the Company further optimized
the organizational structure and management system of responsible investment. In
the process of investment, the Company has included ESG factors in screening on
investment targets, analysis of the investment and research team, approval and decision-
making of the investment decision-making committee and continuously improved
the investment decision-making mechanism with ESG considerations integrated. The
Company clearly requires relevant business units to incorporate ESG factors into
the full process of group-wide equity investment business, fixed-income investment
business, private equity investment and equity investment in alternative investment
business. It includes three important factors, namely environmental responsibility, social
responsibility and corporate governance, as restrictive indexes, into regular investment
decision-making, comprehensively practicing the philosophy of responsible investment.
(IV) Innovating Green Finance to Strengthen Layout for Sustainable Development
The Company focused on serving the national “dual carbon” goal and made great
efforts in green finance by supporting new energy enterprises to go public, innovating
green financial services and contributing to the green transformation of the economy.
The Company focused on giving full play to its comprehensive service capabilities in
investment banking, investment trading, product creation and risk management, actively
responding to the green financial needs of real enterprises.
The Company continued to facilitate green bond business to support the development
of green industrial projects. In 2024, Huatai United Securities served 5 new energy,
energy conservation and environmental protection related enterprises to complete
equity financing, with the green equity underwriting scale reaching RMB4.048 billion;
successfully issued of 59 green bonds, with an underwriting scale of RMB15.698
billion, making Huatai United Securities the vanguard and main force of green bond
underwriting and issuance in China. Huatai Asset Management deeply tapped into
“Carbon Neutrality” and green asset securitization. In terms of servicing green finance,
it has issued a total of 7 products, with a scale of over RMB8.0 billion.
The Company actively participated in the establishment and development of national
and regional carbon markets, building carbon financial products and trading service
systems for both domestic and international markets, to enhance carbon market liquidity
and efficiency and strongly support the green and high-quality development of the real
economy. In 2024, the Company engaged in trading of carbon emission allowances and
China Certified Emission Reduction (CCER) in regional carbon markets in Guangdong,
Shanghai, Beijing, Shenzhen, Hubei and etc. In 2024, the Company was awarded the
2023 “Carbon Finance Practice Award” by Shanghai Environment and Energy Exchange
and the “Market Pioneer Award” by Hubei Carbon Emission Exchange, evidencing the
Company’s positive contribution to the expansion of carbon finance business as well as
the deepening and improvement of China’s carbon market.
238
(V)
Holding Firm to Product Responsibility and Enhancing Quality Assurance
The Company enhanced its innovation-driven development, strengthened the application
of digital technology in financial area, promoted the organic integration of business
philosophy and digital transformation, and improved the digital transformation
measurement system. The Company placed technological empowerment as its core
competitiveness. Based on the strategy of “Digital China”, the Company firmly
followed the path of platform development, deepened the supportive role of technology
to business development, actively embraced cutting-edge technology, and continuously
released the integrated value of “business + technology”. In 2024, the Company’s
“CAMS Intelligent Credit Investment and Research Platform leveraging Big Data
(CAMS
大數據智能信用投研平台
)” and “Jianfu (
簡富
)”, an investment banking digital
due diligence workstation, were both awarded the Second Prize in the 2023 Financial
Technology Development Award by the People’s Bank of China.
Adhering to the customer-oriented approach, the Company deepened the “two-pronged”
(
雙輪驅動
) strategy, promoted the organizational upgrading of “One Customer”
internally and “One Huatai” externally, and built up a sound customer service system
with full business chain. Meanwhile, the Company actively implemented relevant
requirements of the regulatory authorities for investor protection and investor education,
innovated the operation model of investor education services, and continuously carried
out investor education content and event promotion with classified and stratified refined
services, so as to establish an investor education service system with wide coverage and
strong support. In 2024, Huatai Securities Nanjing National Investor Education Base
was awarded “Excellent” rating by the CSRC for the year 2023-2024. The Company’s
investor education services received an A grade in the investor education evaluation
assessment of brokerage firms organized by the SAC, the SSE, the SZSE and the
NEEQ.
The Company has always attached great importance to data information security and
customer privacy protection, strictly abided by the Data Security Law of the People’s
Republic of China (
《中華人民共和國數據安全法》
), the Personal Information Protection
Law of the People’s Republic of China (
《中華人民共和國個人信息保護法》
), the
Measures for the Administration of Cybersecurity and Information Security in the
Securities and Futures Industries (
《證券期貨業網絡和信息安全管理辦法》
) and other
laws, regulations and regulatory requirements, and issued the Statements of Huatai
Securities Co., Ltd. on Data and Information Protection (
《
華泰證券股份有限公司
數
據及信息保護聲明》
). The Company has built a more robust information security and
privacy protection mechanism by strengthening data governance, privacy protection and
cybersecurity prevention and control, and transaction security protection, etc.
239
(VI) Empowering the Growth of Employees to Jointly Construct a Community of
Shared Future
The Company strictly abides by relevant national laws and regulations such as the
Labor Law of the People’s Republic of China (
《中華人民共和國勞動法》
), the Labor
Contract Law of the People’s Republic of China (
《中華人民共和國勞動合同法》
), the
Employment Promotion Law of the People’s Republic of China (
《中華人民共和國就業
促進法》
) and other laws and regulations, provides equal employment opportunities to
employees, resolutely opposes employment discrimination, and ensures that employees’
employment and career development are not affected by any factors such as race,
faith, gender, religion, nationality, ethnicity, age, marital status and social status. The
Company focuses on talent development strategy, adheres to the recruitment principles
of openness and equality, scientific selection, and moral integrity, and introduces
diversified talents through campus recruitment, social recruitment, internal recruitment,
and other flexible and diverse recruitment methods to enhance the depth of talents.
The Company attaches great importance to the growth and development of employees.
It has established a cultivation and development system covering the whole life cycle
of employee growth and launched the cultivation programs of “Seaworthiness Program
– Sailing Program – Voyage Program – Pilot Program” matching the corresponding
development system. It also had a growth path covering “newcomer – business backbone
– composite elite – management generalist” to meet the development needs of talents
at different stages. The Company continued to build the HTalent talent development
system with the ability of cultivating international investment bankers, adding value to
customers and digital transformation, strengthened the Group’s integrated management
both at home and abroad, and comprehensively upgraded employee training system.
Based on the “HTalent Talent Training and Development System”, a talent training
system which can cover the entire career path of an employee across the whole business
chain, the Company integrates the training resources for the professional competence
of each business both at home and abroad, and provides employees with an internal
talent development system and growth path that is consistent with the Group’s concepts
and synergistic with its methodology, empowering the growth of whole career general
capacity of employees.
240
(VII)
Fulfilling Social Responsibilities and Deepening Engagement in Public Welfare
Initiatives
1.
Assisting in ecological protection
The Company actively responds to the requirements of the China National
Biodiversity Conservation Strategy and Action Plan (2023-2030) (
《中國生物多樣
性保護戰略與行動計劃（
2023-2030
年）》
) issued by the Ministry of Ecology and
Environment, taking the initiative to serve the national strategy of “Comprehensive
Protection of Yangtze River” and the policy initiative of deepening “Collaboration
between the Eastern and the Western Regions”. Taking advantage of the “One
Commonweal Heart of Huatai One Yangtze River” ecological environment
protection program, it carried out work in relation to biodiversity conservation,
committed to protecting the biodiversity of the Yangtze River Basin. Over the
past six years, the project has extended its main coverage from the source of the
Yangtze River to the middle and lower reaches of the river, and its content has
been extended from key species protection and community development to a wider
range of areas such as youth talent development and public education.
In 2022, the “Independent Commitments by Non-State Actors” of the Company
with the theme of “One Yangtze River One World” was officially included in the
database of the United Nations Convention on Biological Diversity (CBD) “Action
Agenda”. Over the past two years, the Company has actively joined hands with
various parties to carry out biodiversity protection, responded to the “Kunming-
Montreal Global Biodiversity Framework” (
《昆明 － 蒙特利爾全球生物多樣性
框架》
) reached at the 15th meeting of the UN Conference of the Parties to the
Convention on Biological Diversity (CBD COP15) and led employees, customers,
partners, the public and other groups to widely understand and participate in
the protection of biodiversity to facilitate the progress of biodiversity as a main
stream.
2.
Promoting educational equity
Since its establishment in 2016, the “One Commonweal Heart of Huatai One
Tomorrow” rural education program of the Company has aimed to drive the
comprehensive development of children in need and promote educational equity,
covering rural schools and children in need in Qinghai, Yunnan, Hubei, Anhui,
Jiangsu and other places. The program has been dedicated to improving the mental
health and overall quality of left-behind children, mobilizing the efforts of various
parties to improve the living conditions of children in need, through quality
education, family care, volunteer services and other diversified public welfare
models, helping healthy growth of left-behind children. As of the end of 2024,
the program has benefited 146,116 children, 13,990 teachers, and has brought in
165,702 donations amounting to RMB3.2720 million for assisting a total of 1,355
children in financial difficulties.
241
(VIII)
Responding to Climate Change and Building a Robust Management System
The Company has been responding to the challenges and opportunities brought by
climate change and has been attaching great importance to the management of climate
risks. In 2024 Corporate Social Responsibility Report of Huatai Securities Co., Ltd.,
with reference to the requirements under the Implementation Guidance for Climate
Disclosures under ESG Framework issued by HKEX and the International Financial
Reporting Sustainability Disclosure Standards 2 – Climate-related Disclosures (IFRS
S2) issued by the International Sustainability Standards Board (ISSB), and the
recommendation framework of the former Task Force on Climate-related Financial
Disclosure (TCFD), the Company identified, analyzed and took responding measures
for climate risks and opportunities related to its operations, including climate-related
risk management, strategy, risk management, metrics and targets and potential financial
impact analysis, so as to ensure the effective and orderly implementation of climate-
related actions.
Summary of climate-related disclosures by TCFD
Governance
•
The Board of Directors of the Company is responsible for
comprehensively supervising climate risk
✓
Taking in charge of the overall supervision of ESG
matters including climate change topics, including
supervising, directing and reviewing climate change-
related management approaches, policies, strategies,
objectives, action plans, risks and opportunities and
other major decisions and their implementation;
✓
Assuming overall responsibility for the Company’s
climate risk management, regularly reviewing
climate risk management strategies, objectives,
risks and opportunities, action plans and other
major decisions and paying particular attention to
resolutions on climate change.
P15-18, P63-
69 of 2024
Corporate Social
Responsibility
Report of Huatai
Securities Co., Ltd.
242
•
The ESG Committee is the decision-making and
deliberative body for ESG work
✓
Responsible for formulating and reviewing
strategies, goals and other major decisions related to
environmental protection, climate change and other
sustainable development;
✓
Responsible for determining the importance of
climate change issues, and identifying risks and
opportunities of climate;
✓
Responsible for the construction and management of
climate-related mechanism, and coordination of the
overall implementation of climate change strategies.
•
The ESG management team is accountable to the ESG
Committee and responsible for the implementation and
promotion of environmental and climate change-related
policies
✓
The implementation of climate risk management
strategy, statistics of energy and resource
consumption, and the accounting of greenhouse gas
emissions.
•
All business departments and subsidiaries jointly promote
the implementation of climate change actions
✓
Explicitly responsible for the specific implementation
of the work related to climate change issues,
so as to ensure the solid progress and effective
implementation of the work on climate change
actions.
•
The Company exercises the voting right externally and
states its concerns about resolutions on climate change,
including but not limited to carbon neutrality goals, actions
on carbon emission reduction and response to climate-
related substantial and transformation risks
✓
Approving relevant resolutions in principle and
incorporating relevant regulatory policies on climate
change, relevant systems of the Company on climate
change, the impacts of climate change risks on the
operation and finance of the Company as well as
the measures of the Company on identifying and
responding to risks into consideration.
243
Strategy
•
Carrying out the identification, evaluation and analysis of
climate-related risks and opportunities
•
Determining the climate-related risks and opportunities
which are material for the Company’s business and
operations
•
Gradually improving the top-level design for managing
climate risks and opportunities
P63-69 of 2024
Corporate Social
Responsibility
Report of Huatai
Securities Co., Ltd.
Risk
management
•
Based on its business and strategy, and combined with
expert opinions, the Company evaluates climate-related
risks and opportunities. Moreover, the Company constructs
a climate-related risk and opportunity matrix based on the
assessment results and identifies the materiality of the risks
and opportunities based on their probability and degree of
impact, while also improves the mechanism for climate-
related risks and opportunities on an on-going basis
P63-69 of 2024
Corporate Social
Responsibility
Report of Huatai
Securities Co., Ltd.
Metrics and
targets
•
As a financial enterprise, the Company consumes energy
and discharges carbon mainly for daily office work in the
course of operations, involving energy such as electricity,
natural gas, petrol used for company owned vehicles and
diesel used for diesel generators
✓
Implementing various energy conservation and
emission reduction measures such as adopting
renewable energy sources, promoting recycling,
reducing paper consumption and advocating green
and low-carbon travel, so as to reduce energy
consumption and carbon emissions.
•
The Company conducts statistics and analysis of total
carbon emissions and energy consumption and intensity
to assess the management on climate change issue and
accordingly formulate improvement scheme to promote
energy conservation and emission reduction
✓
With taking 2021 as the base year, the Company has
set carbon emission and energy management targets,
and will track and report on the progress of such
targets on an annual basis.
P63-69, P70-73,
P121-123 of 2024
Corporate Social
Responsibility
Report of Huatai
Securities Co., Ltd.
244
III. DETAILS ON CONSOLIDATION AND EXPANSION OF THE RESULTS OF
POVERTY ALLEVIATION, RURAL REVITALIZATION AND OTHER WORK
Currency: RMB
Poverty alleviation and rural revitalization project
Number/Content
Description
Total investment (Ten Thousand Yuan)
1,297.98
Total investment in poverty
alleviation and rural
revitalization projects
Of which: Funds (Ten Thousand Yuan)
1,297.98
Total investment in poverty
alleviation and rural
revitalization projects
Material equivalent (Ten Thousand Yuan)
–
–
Number of persons benefited (people)
160,106
Accumulative number of
beneficiaries under rural
education programs such as
“One Commonweal Heart of
Huatai One Tomorrow”
Forms of poverty alleviation (such as industrial
alleviation, employment alleviation, education
alleviation, etc.)
Industrial alleviation,
employment
alleviation, education
alleviation, etc.
Supporting industrial development
at the support targets,
supporting the construction of
factories for local agriculture,
establishing agricultural risk
coverage, and continuously
serving rural livelihood
foundation; continuously
carrying out the “One
Tomorrow” rural education
program; implementing
a consumption assistance
program, and proactively
purchasing consumption
assistance products of the
support targets
245
The Company takes serving rural revitalization as a major development task and a major
people’s livelihood task, and fully integrates the Group’s advantageous resources to orderly
advance the five key areas of rural revitalization, including industry, talent, culture, ecology
and organization, in order to serve the national goal of building a strong agricultural country.
In terms of organizational coverage, the Company established a robust organizational
mechanism for rural revitalization, where major leaders personally carried on research,
subordinate leaders gave specific guidance, and specially-assigned personnel of functional
departments took charge. The Company insisted on the selection of young backbone staff
with good political quality, strong working ability, commitment and responsibility as the
assistance team members and serving as the “first secretary” in the village, contributing
strong momentum to rural development. In terms of consumption assistance, the Company
and its subsidiaries actively purchased and sold agricultural and sideline products from
poverty-stricken areas and other underdeveloped areas, with a cumulative purchase amount
of RMB9,231,400. In addition, the Company continuously deepened the construction of long-
term support projects in Nangqian County, Yushu Tibetan Autonomous Prefecture, Qinghai
Province, provided substantial support for the development of healthcare industry in Tibetan
areas, renovated and upgraded the dialysis ward of Nangqian County People’s Hospital, and
built Children’s Homes at local schools, to provide material aid and nature education support
for children in difficulty.
In six places of five provinces, including Suqian in Jiangsu Province, Jinzhai and Yuexi in
Anhui Province, Enshi in Hubei Province, Lancang in Yunnan Province and Yushu in Qinghai
Province, the Company carried out the “One Tomorrow” rural education program in a deep-
going way, conducted voluntary services and public welfare activities for visiting children
in need. The program provides targeted voluntary services for left-behind children and
teachers, in conjunction with the characteristics and differentiated needs of various schools.
By integrating resources from multiple parties, the program invites experts in psychology,
education, sociology, intangible culture and ecology to contribute professional strengths
to rural education. In addition, the Company set up dream centers in schools that meet the
hardware and software conditions to help the growth of left-behind children. Since 2018, the
Company has launched seven consecutive sponsorship programs for children in need, raising
funds for children in schools sponsored by the “One Commonweal Heart of Huatai One
Tomorrow” rural education program in Yushu of Qinghai, Enshi of Hubei, Jinzhai and Yuexi
of Anhui, Suqian of Jiangsu, and other places.
246
MAJOR EVENTS
I.
PERFORMANCE OF UNDERTAKINGS
Undertakings of de facto controllers, Shareholders, related parties, purchasers of the
Company, the Company and other undertaking-related parties made or remained
effective during the Reporting Period
Background of
undertaking
Type of
undertaking
Undertaking
party
Content of undertaking
Date of
undertaking
Any
deadline for
performance
or not
Duration of
undertaking
Strictly
performed
in a timely
manner
or not
Other
undertakings
made to minority
Shareholders
of the Company
To solve
horizontal
competition
Guoxin Group
Guoxin Group and its subsidiaries
or associated companies shall not
engage in or conduct any business
which may compete with the primary
business of Huatai Securities in
any way (including but not limited
to self-operated, joint-ventured or
associated) at any time in the future
(except for Jintai Futures Co., Ltd.).
For any opportunities to conduct,
engage in or invest in any business
that may compete with the business
of Huatai Securities available to
Guoxin Group and its subsidiaries or
associated companies, Guoxin Group
will give such opportunities to Huatai
Securities (except for Jintai Futures
Co., Ltd.).
June 27, 2014
No
Long term
Yes
II.
THERE WAS NO NON-OPERATING MISAPPROPRIATION OF FUNDS OF THE
COMPANY BY ANY CONTROLLING SHAREHOLDERS AND OTHER RELATED
PARTIES DURING THE REPORTING PERIOD
247
III. THE COMPANY HAD NO GUARANTEES IN VIOLATION OF REGULATIONS
DURING THE REPORTING PERIOD
IV.
STANDARD UNQUALIFIED OPINION AUDIT REPORT WAS PREPARED BY THE
ACCOUNTING FIRM OF THE COMPANY
V.
ANALYSIS AND EXPLANATION FROM THE COMPANY ON THE REASONS AND
IMPACT OF THE CHANGE OF ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES OR CORRECTION OF MAJOR ACCOUNTING ERRORS
(I)
Analysis and explanation from the Company on the reasons and impact of the
change of accounting policies and accounting estimates
For the change of accounting policies and accounting estimates during the Reporting
Period, please refer to “Change of Significant Accounting Policies and Accounting
Estimates” under “Significant Accounting Policies and Accounting Estimates” under
“Financial Report” in this report.
(II)
The Company made no correction of major accounting errors
248
VI.
APPOINTMENT AND REMOVAL OF ACCOUNTING FIRM
Unit: Ten Thousand Yuan
Currency: RMB
Currently employed
Name of the domestic accounting firm
Deloitte Touche Tohmatsu Certified
Public Accountants LLP
Remuneration of the domestic accounting firm
318
Audit duration of the domestic accounting firm
3 years
Name of certified public accountants of the
domestic accounting firm
Hu Xiaojun, Han Jian
Continued duration of auditing services by certified
public accountants of the domestic accounting firm
3 years
Name of the overseas accounting firm
Deloitte Touche Tohmatsu
Remuneration of the overseas accounting firm
138
Audit duration of the overseas accounting firm
3 years
Name
Remuneration
Accounting firm for the auditing of
internal controls
Deloitte Touche
Tohmatsu Certified
Public Accountants
LLP
Please refer to the
description below
this table
Description of appointment and removal of accounting firm
During the Report Period, upon consideration and approval at the Company’s 2024 Annual
General Meeting, the Company continued employing Deloitte Touche Tohmatsu Certified
Public Accountants LLP as the audit service institute of the Company and its holding
subsidiaries for the 2024 annual financial statements and internal control to issue A Share
audit report, internal control audit report and GDR audit report; and employed Deloitte
Touche Tohmatsu as the audit service institute for the Company’s H Shares to issue H Share
audit report. The audit service fee was capped at RMB4.60 million (of which the internal
control audit fee was RMB0.40 million).
VII. THE COMPANY HAD NO RISKS OF SUSPENSION OF LISTING, TERMINATION
OF LISTING, BANKRUPTCY AND RESTRUCTURING
249
VIII. MATERIAL LITIGATION AND ARBITRATION
During the Reporting Period, there were no material litigation and arbitration of the Company
with amount involving more than RMB10 million and accounting for more than 10% of
the absolute value of the audited net assets of the Company for the latest period, which are
required to be disclosed by the Rules Governing the Listing of Stocks on the Shanghai Stock
Exchange. As of the end of the Reporting Period, litigations and arbitrations of the Company
that had been disclosed and had progress are as follows:
1.
Securities investment fund transaction dispute among the Company and Zhaoxin
Company, etc.
In March 2024, the Company received a lawsuit document from Shenzhen Intermediate
People’s Court. According to the lawsuit, Zhejiang Zhaoxin Investment Management
Co. Ltd. (
浙江兆信投資管理有限公司
) (“Zhaoxin Company”) suffered losses from
its investment with a private fund product managed by it as the manager in another
private fund product. Zhaoxin Company filed a lawsuit in court against the managers,
custodians and other relevant parties of the relevant underlying funds, demanding each
of the defendants to jointly compensate for its losses totaling RMB623,324,129.95.
At present, Shenzhen Intermediate People’s Court has accepted the case and the
Company has engaged a lawyer to represent it to respond to the lawsuit. In light of the
jurisdictional objection filed by the defendants, on July 1, 2024, Shenzhen Intermediate
People’s Court made the first-instance ruling that the case shall be transferred to the
jurisdiction of Chengdu-Chongqing Financial Court. Zhaoxin Company disagreed
with the ruling and filed an appeal. On October 22, 2024, the High People’s Court of
Guangdong Province made the second-instance ruling of upholding the first-instance
ruling that the case shall be transferred to the jurisdiction of Chengdu-Chongqing
Financial Court.
2.
Tort liability disputes among the Company and Zhejin Company, etc.
In June 2024, the Company received a lawsuit document from Hangzhou Intermediate
People’s Court. According to the lawsuit, Ningbo Zhejin Steel Co., Ltd. (
寧波浙金鋼
材有限公司
) (“Zhejin Company”) suffered losses from its investment in a trust plan,
thus Zhejin Company sued to the court and demanded the product service agency, fund
manager and custodians of the underlying fund invested by the trust plan to jointly
compensate for its loss of the principal, interest loss and the attorney’s fee, etc., totaling
RMB100,086,666.67. The Company is one of the product custodians of the underlying
fund. At present, Hangzhou Intermediate People’s Court has accepted the case. The
Company has engaged a lawyer to represent it to respond to the lawsuit. In light of
the jurisdictional objection filed by the defendants, on September 24, 2024, Hangzhou
Intermediate People’s Court made the first-instance ruling that the case shall be
transferred to the jurisdiction of Ningbo Intermediate People’s Court. On December 9,
2024, the High People’s Court of Zhejiang Province made the second-instance ruling of
upholding the first-instance ruling that the case shall be transferred to the jurisdiction of
Ningbo Intermediate People’s Court.
250
3.
Performance dispute between Yili Fund, a fund under Huatai Purple Gold
Investment, and Der Group and its de facto controller, Ru Jiyong
Yili Su Xin Investment Fund Partnership (Limited Partnership) (
伊犁蘇新投資基金合
夥企業
(
有限合夥
)) (“Yili Fund”), a fund under Huatai Purple Gold Investment, filed
an application for arbitration with the Nanjing Arbitration Commission in June 2020,
requesting Ru Jiyong, the de facto controller of Der Group Co. Ltd. (
德爾集團有限公
司
) (“Der Group”) to fulfil his obligation to repurchase the equity interest in Henan
Yiteng New Energy Technology Co., Ltd. (
河南義騰新能源科技有限公司
) (“Henan
Yiteng”) held by Yili Fund pursuant to the agreement entered into between the parties
in relation to the investment in Henan Yiteng. The Nanjing Arbitration Commission
held hearings on August 19, 2022, February 24, 2023 and October 7, 2023. In light of
the bankruptcy and the cancellation of industry and commerce registration of Henan
Yiteng, Yili Fund filed a new application for arbitration with the Nanjing Arbitration
Commission on February 7, 2024, demanding Ru Jiyong to undertake the corresponding
payment obligations. On February 20, 2024, the Nanjing Arbitration Commission
accepted the aforesaid arbitration application from Yili Fund. The Nanjing Arbitration
Commission issued a decision letter on June 24, 2024, stating that the arbitration
proceedings in this case were suspended due to Ru Jiyong’s claim for confirmation
of the validity of the arbitration agreement, which had been accepted by Suzhou
Intermediate People’s Court and no ruling had been made yet. On September 24, 2024,
Suzhou Intermediate People’s Court made a ruling of approving the withdrawal of
the claim by Ru Jiyong. Therefore, on September 29, 2024, the Nanjing Arbitration
Commission ruled to resume the arbitration proceedings. On November 8, 2024, the
case was heard before the Nanjing Arbitration Commission. On February 8, 2025, a
ruling from the Nanjing Arbitration Commission was received, which supported all
requests of Yili Fund.
On November 11, 2022, Yili Fund filed a lawsuit against Der Group with the People’s
Court of Jianye District, Nanjing, requesting Der Group to be liable for the losses
incurred by Yili Fund resulting from the invalid guarantee of pledge of shares of Der
Future (with damages of RMB275,966,101, of which, the loss of investment principal
amounted to RMB142,372,881 and the loss of interest amounted to RMB133,593,220).
On November 28, 2022, the People’s Court of Jianye District, Nanjing froze 54,919,622
shares of Der Future held by Der Group upon the application of Yili Fund. The case
was then transferred to Ili Kazakh Autonomous Prefecture Branch of the High People’s
Court of Xinjiang Uygur Autonomous Region (the “Ili Court”), and the Ili Court held
a hearing on September 8, 2023 and issued a civil ruling on October 18, 2023, holding
that the case had to be based on the outcome of the Nanjing Arbitration Case, and
ordered a stay of the litigation accordingly. Due to the requirements on time limits
for case trial, Yili Fund filed an application for withdrawal of the case with the Ili
Court, which issued a ruling agreeing to the withdrawal of the case on May 21, 2024.
At the same time, Yili Fund applied to the Ili Court for pre-litigation preservation and
resubmitted its application to file the case. On September 9, 2024, the Ili Court made
a ruling, rejecting the objection application filed against the jurisdiction of the case by
Der Group Co. Ltd., and Der Group filed an appeal against the ruling. On November
7, 2024, the Xinjiang High Court made a ruling, rejecting the appeal against the
jurisdictional objection filed by Der Group.
251
4.
Performance dispute between Yili Fund, a fund under Huatai Purple Gold
Investment, and Su Yashuai
The project of J-Tech CNC Technology Co., Ltd. (
嘉泰數控科技股份有限公司
)
(“J-Tech CNC”) invested by Yili Fund, a fund under Huatai Purple Gold Investment,
has triggered the repurchase and cash compensation obligations of Su Yashuai,
the de facto controller of J-Tech CNC, due to the failure to fulfill the performance
commitments and listing targets as stipulated in the investment agreement, which has
resulted in a performance dispute. In October 2023, Yili Fund filed an application for
litigation to the People’s Court of Jianye District, Nanjing. The People’s Court of Jianye
District has accepted the case and commenced the trial on January 15, 2024. On April
18, 2024, the People’s Court of Jianye District issued a civil judgment in favor of Yili
Fund’s claim for the consideration for share repurchase, which consisted of the principal
amount of RMB80,059,100 as well as the repurchase premium (calculated at an interest
rate of 10% per annum until the date of actual payment of the consideration for share
repurchase); and adjusted the liquidated damages claimed by us, which was calculated
on a base amount of RMB80,059,100 and at the one-year Loan Prime Rate standard
published by the National Interbank Funding Center from September 13, 2022 until the
date of actual settlement. By the expiration of the appeal period, the opponent had not
filed an application for appeal and the first instance judgment had become effective.
Yili Fund submitted the filing materials with the Executive Bureau of People’s Court of
Jianye District on June 12, 2024 for compulsory execution, and the People’s Court of
Jianye District filed a case in August 2024; On December 30, 2024, Yili Fund received
the award of termination of execution served by the People’s Court of Jianye District.
5.
Bill dispute of Huafu Xiamen Bank No. 1 Targeted Assets Management Plan of
Huatai Securities (
華泰證券華福廈門銀行
1
號定向資產管理計劃
)
In October 2016 and March 2017, Xiamen Bank Co., Ltd., the client of Huafu Xiamen
Bank No. 1 Targeted Assets Management Plan of Huatai Securities (hereinafter
referred to as “Huafu Xiamen Bank No. 1 (
華福廈門銀行
1
號
)”), filed a lawsuit of
contract dispute at Fujian Higher People’s Court for the bill dispute of Huafu Xiamen
Bank No. 1, with Shenzhen Branch of Bank of Ningbo Co., Ltd. as the defendant. The
total amount of the underlying bill was RMB950 million. Huatai Asset Management
participated in the lawsuit as a third party. On June 26, 2018, Fujian Higher People’s
Court made the first-instance judgment in favor of Xiamen Bank’s main litigation claim,
and on December 12, 2020, the Supreme People’s Court made the second-instance
judgment to reject the appeal and upheld the original judgment. After the second-
instance judgment became effective, Shenzhen Branch of Bank of Ningbo fulfilled the
judgment payment to Xiamen Bank. In 2023, the applicant, Shenzhen Branch of Bank of
Ningbo, filed an application for retrial on the grounds that there were new evidence and
facts in the case which were sufficient to overturn the second-instance judgment, which
was accepted by the Supreme People’s Court on July 11, 2023. On December 9, 2024,
the Supreme Court issued Civil Rulings of (2024) Zui Gao Fa Min Zai No. 272 and No.
273, ruling to revoke Civil Judgements of (2016) Min Min Chu No. 108 and (2017) Min
Min Chu No. 31 issued by Fujian Higher People’s Court and Civil Judgements of (2019)
Zui Gao Fa Min Zhong No. 190 and (2019) Zui Gao Fa Min Zhong No. 191 issued by
the Supreme People’s Court, and remanded the case to Fujian Higher People’s Court for
a retrial.
252
IX.
SUSPECTED VIOLATIONS OF LAWS AND REGULATIONS BY, PUNISHMENT ON
AND RECTIFICATION OF THE COMPANY AND ITS DIRECTORS, SUPERVISORS,
SENIOR MANAGEMENT, CONTROLLING SHAREHOLDERS AND DE FACTO
CONTROLLERS
1.
In March 2024, Hubei Securities Regulatory Bureau issued the Decision on Taking
Measures by Issuing a Warning Letter to Huatai United Securities Co., Ltd., Liu Wei
and Zhang Zhanpei ([2024] No. 14) (
《關於對華泰聯合證券有限責任公司、劉偉、張
展培採取出具警示函措施的決定》
([2024]14
號
)) to Huatai United Securities, pointing
out that Huatai United Securities failed to carry out effective supervision over the
financial accounting and funds raising of Hubei Huaqiang High-tech Co., Ltd. (
湖北
華強科技股份有限公司
) (“Huaqiang High-tech”), and that the relevant descriptions in
the report issued were not tally with the facts, and failed to reflect the non-compliance
issues of Huaqiang High-tech in a true and accurate manner. Hubei Securities
Regulatory Bureau took administrative regulatory measures by issuing a warning letter
to Huatai United Securities and the relevant personnel in accordance with Article
64 of the Administrative Measures for the Sponsorship Business of the Issuance and
Listing of Securities (
《證券發行上市保薦業務管理辦法》
). Huatai United Securities has
pursued corresponding internal accountability in accordance with the corporate system,
and requested the responsible departments to conduct a comprehensive review on the
continuous supervision and workflow of the sponsorship business projects, to perform
their duties conscientiously and diligently, and to prevent the recurrence of similar
incidents.
2.
In April 2024, Jiangsu Securities Regulatory Bureau issued the Decision on Ordering
Huatai Securities Co., Ltd. to Take Rectification Regulatory Measures ([2024] No.
74) (
《關於對
華泰證券股份有限公司
採取責令改正監管措施的決定》
([2024]74
號
)),
pointing out that the Company failed to put in place compliance and risk control
gatekeeping for part of its proprietary business, failed to fulfill its obligations of
managing and supervising the appropriateness of some of its clients, failed to manage
the qualifications of its practitioners and failed to improve the internal control over its
follow-on investment business. The Company attached great importance to the above
issues and has organised relevant departments to effectively carry out rectifications and
regulations around various aspects such as regimes, processes and systems.
253
3.
In April 2024, Shenzhen Securities Regulatory Bureau issued the Decision on Taking
Measures by Issuing a Warning Letter to the Securities Branch of Huatai Securities Co.,
Ltd. in Shennan Avenue, Shenzhen ([2024] No. 77) (
《關於對
華泰證券股份有限公司
深圳深南大道證券營業部採取出具警示函措施的決定》
([2024]77
號
)) to the Securities
Branch of the Company in Shennan Avenue, Shenzhen, pointing out that the Securities
Branch in Shennan Avenue, Shenzhen cooperated with external organisations to hold a
customer training and exchange meeting in 2019, which involved explanations on the
securities market trends and other related contents, yet the Branch failed to conduct
compliance review on the activities, agenda, contents and qualifications of the lecturers.
The Securities Branch in Shennan Avenue, Shenzhen had carried out rectifications
in respect of the issues pointed out in the letter, and the Company had also further
strengthened the management of branches by way of assessment and accountability.
4.
In April 2024, Jiangsu Securities Regulatory Bureau issued the Decision on Ordering
Huatai Securities Co., Ltd. to Take Rectification Regulatory Measures ([2024] No. 85)
(
《關於對
華泰證券股份有限公司
採取責令改正監管措施的決定》
([2024]85
號
)) to the
Company, pointing out that the Company failed to manage the trading behaviors of its
clients in carrying out its margin financing and securities lending business; and failed to
continuously supervise its clients to standardise their issuance behaviors in the course
of carrying out the business of non-financial corporate debt financing instruments in the
inter-bank bond market. In response to the above-mentioned issues, the Company has
organised relevant departments and branches to actively carry out rectifications, and
further optimised the governing mechanisms in relevant areas.
5.
In May 2024, Yunnan Securities Regulatory Bureau issued the Decision on Taking
Measures by Issuing a Warning Letter to Huatai Securities Co., Ltd., Yunnan Branch
(Decisions on Administrative Regulatory Measures [2024] No. 7) (
《關於對
華泰證券
股份有限公司
雲南分公司採取出具警示函措施的決定》
(
行政監管措施決定書
[2024]7
號
)) to Yunnan Branch of the Company, pointing out that Yunnan Branch of the
Company failed to deal with investor complaints and disputes in a timely and proper
manner. Yunnan Branch had dealt with the relevant investor complaints and disputes
in a proper manner, and the Company had continuously optimised the complaint and
dispute prevention and resolution mechanisms.
254
6.
In May 2024, Shanghai Securities Regulatory Bureau issued the Decision on Taking
Measures by Issuing a Warning Letter to Huatai Securities (Shanghai) Assets
Management Co., Ltd. (Hu Zheng Jian Jue [2024] No. 213) (
《關於對華泰證券
(
上海
)
資產管理有限公司採取出具警示函措施的決定》
(
滬證監決
[2024]213
號
)) to Huatai
Asset Management, pointing out that Huatai Asset Management had the following
deficiencies: firstly, the funds invested for relief purposes under the asset management
plan for supporting the development of private enterprises did not reach the prescribed
proportion, reflecting a lack of prudence and diligence in the Company’s operations;
secondly, the due diligence on counterparties was inadequate, and there was a failure
to conduct prudent investigation on counterparties in the process of handling the
stock pledged repurchase business for individual clients. Huatai Asset Management
attached great importance to and sincerely accepted the issues pointed out in the above-
mentioned warning letter, formulated a clear rectification plan and completed the
rectifications. Huatai Asset Management would take this as an opportunity to further
promote the robust development of various businesses in a prudent and diligent manner.
7.
In June 2024, the Shanghai Stock Exchange issued the Decision on Issuing Regulatory
Warning to Huatai United Securities Co., Ltd., Sponsor Representatives Xia Junfeng
and Wang Yi ([2024] No.34) (
《關於對華泰聯合證券有限責任公司、保薦代表人
夏俊峰、汪怡予以監管警示的決定》
([2024]34
號
)) to Huatai United Securities,
pointing out that Huatai United Securities failed to fulfill the obligation of prudent
verification in respect of the flow of funds to overlapping supplier by the affiliated
company of Zhejiang Arcana Power Sports Tech Co., Ltd. (
浙江力玄運動科技股份
有限公司
), and failed to prudently assess the income-related verification opinions of
the reporting accountant and other circumstances. The Shanghai Stock Exchange, in
accordance with the Rules Governing the Review of Issuance and Listing of Stocks
on the Shanghai Stock Exchange (
《上海證券交易所股票發行上市審核規則》
) and
other relevant provisions, took the self-disciplinary measures of regulatory warning
against Huatai United Securities and the relevant personnel. Huatai United Securities
pursued corresponding internal accountability in accordance with the corporate system
and required the responsible departments to conduct comprehensive inspections on the
project management, risk identification and control and other matters of sponsorship
business, so as to further improve the adequacy and prudence of due diligence.
255
8.
In October 2024, Shenzhen Securities Regulatory Bureau issued the Decision on
Taking Measures by Issuing a Warning Letter to Huatai United Securities Co., Ltd.
([2024] No. 203) (
《關於對華泰聯合證券有限責任公司採取出具警示函措施的決定》
([2024] 203
號
)) to Huatai United Securities, pointing out that Huatai United Securities
failed to conduct adequate due diligence for certain bonds underwritten by it, failed
to strictly fulfill continuous supervision obligations, failed to conduct businesses
while adhering to integrity and other issues. Shenzhen Securities Regulatory Bureau
took administrative regulatory measures by issuing a warning letter to Huatai United
Securities in accordance with the Measures for the Administration of Information
Disclosure Concerning Corporate Credit Bonds (
《公司信用類債券信息披露管理辦
法》
). Huatai United Securities has conducted a serious review based on the above
issues, further strengthened the adequacy of due diligence and information disclosure,
rigorously fulfilled its ongoing supervision obligations, and clarified relevant cost-
bearing requirements, to prevent recurrence of similar issues.
9.
In November 2024, Jiangsu Securities Regulatory Bureau issued the Decision on
Ordering Huatai Securities Co., Ltd. Zhenjiang Branch to Take Rectification Regulatory
Measures ([2024] No. 218) (
《關於對
華泰證券股份有限公司
鎮江分公司採取責令改
正監管措施的決定》
([2024]218
號
)) to the former Zhenjiang Branch of the Company,
pointing out that staff of such branch and its subordinate business departments had
illegally sold financial products. The Company has organised relevant branches to
conduct self-inspection and rectification, and further enhanced standardised management
of financial product sales processes.
10.
In November 2024, Jiangsu Securities Regulatory Bureau issued the Decision on
Taking Regulatory Measures by Issuing a Warning Letter to Huatai Securities Co.,
Ltd. ([2024] No. 230) (
《關於對
華泰證券股份有限公司
採取出具警示函監管措施的決
定》
([2024]230
號
)) to the Company, pointing out that the Company had the following
deficiencies: firstly, the Company conducted OTC options transactions with non-
professional institutional investors and failed to effectively monitor the percentage of
purchase of OTC options for involved products in the relevant process; secondly, the
Company failed to implement adequate compliance management on certain branches,
resulting in situations of conducting business in a non-compliant manner, such as
staff provided test answers to clients, conducted securities transactions on clients’
behalf, and assisted non-professional institutional investors in conducting OTC options
transactions. The Company has organised relevant departments and branches to conduct
self-inspection and rectification, and improved standardised operations in relevant
areas through optimizing systems and mechanisms as well as strengthening promotion,
guidance and training.
256
11.
In November 2024, the Shanghai Stock Exchange issued the Decision on Issuing
Regulatory Warning to Huatai United Securities Co., Ltd. and Sponsor Representatives
Liu Lu, Chen Weiya and Huang Fei ([2024] No. 63) (
《關於對華泰聯合證券有限責任公
司和保薦代表人劉鷺、陳維亞、黃飛予以監管警示的決定》
([2024] 63
號
)) to Huatai
United Securities, pointing out that Huatai United Securities failed to perform sufficient
verification on the internal controls over R&D investments and sales personnel’s capital
flows of the issuer during the sponsorship work for Nanjing Shineking Biotech Co., Ltd.
The Shanghai Stock Exchange, in accordance with the Rules Governing the Review of
Issuance and Listing of Stocks on the Shanghai Stock Exchange (
《上海證券交易所股票
發行上市審核規則》
) and other relevant provisions, took the self-disciplinary measures
of regulatory warning against Huatai United Securities and the relevant personnel.
Huatai United Securities pursued corresponding internal accountability in accordance
with the corporate system and required the responsible departments to conduct a
comprehensive review on the project management, working processes and other matters
of the sponsorship business, so as to continuously improve business capabilities and
work quality.
12.
In December 2024, Zhejiang Securities Regulatory Bureau issued the Decision on
Taking Measures by Issuing a Warning Letter to Huatai United Securities Co., Ltd.
([2024] No. 300) (
《關於對華泰聯合證券有限責任公司採取出具警示函措施的決定》
([2024]300
號
)) to Huatai United Securities. The aforesaid warning letter determined
that Huatai United Securities failed to effectively supervise the management and use of
issuers’ accounts designated for raised funds and failed to diligently and conscientiously
perform its duties of continuously supervising the raised funds in the course of entrusted
management of issuers of relevant corporate bonds. Zhejiang Securities Regulatory
Bureau took administrative regulatory measures by issuing a warning letter to Huatai
United Securities in accordance with the Administrative Measures for Issuance and
Trading of Corporate Bonds (
《公司債券發行與交易管理辦法》
). Upon receipt of the
aforesaid letter in January 2025, Huatai United Securities has pursued corresponding
internal accountability in accordance with the corporate system, and requested the
responsible departments to seriously study the corporate management system, to
conduct a comprehensive review on project management, risk identification and control,
to perform their duties conscientiously and diligently, and to prevent the recurrence of
similar incidents.
Save for the foregoing, none of the Company and its Directors, Supervisors, senior
management, shareholders holding over 5% of equity interest or de facto controllers were
investigated by competent authorities, imposed with coercive measures by a judiciary
authority or disciplinary department, transferred to a judicial authority or held criminally
liable, banned from accessing to the market, identified as unsuitable persons, punished by
other administrative departments or publicly condemned by a stock exchange.
X.
INTEGRITY OF THE COMPANY AND ITS CONTROLLING SHAREHOLDERS AND
DE FACTO CONTROLLERS DURING THE REPORTING PERIOD
During the Reporting Period, the Company and its de facto controllers maintained good faith
with no cases such as non-performance of effective court judgment or overdue of relatively
large liability.
257
XI.
MAJOR RELATED-PARTY TRANSACTIONS
Details on the related-party transactions under the relevant accounting standards can be found
in Note 59 to the consolidated financial statements in this report. The Company confirmed
that the related-party transactions were not qualified as the “connected transactions” or the
“continuing connected transactions” as defined in Chapter 14A of the Hong Kong Listing
Rules (as the case may be), or were in compliance with the disclosure requirements under
Chapter 14A of the Hong Kong Listing Rules.
XII. MATERIAL CONTRACTS AND PERFORMANCE THEREOF
(I)
The Company was not engaged in any custody, contracting or leasing
(II) Guarantees
Unit: 100 million Yuan
Currency: RMB
External guarantees of the Company (excluding the guarantees for subsidiaries)
Total amount of guarantees during the Reporting Period
(excluding the guarantees for subsidiaries)
–
Total balance of guarantees at the end of the Reporting Period (A)
(excluding the guarantees for subsidiaries)
–
Guarantees of the Company and its subsidiaries for its subsidiaries
Total amount of guarantees for subsidiaries during the Reporting Period
111.23
Total balance of guarantees for subsidiaries at the end of the Reporting Period (B)
323.36
Total guarantee amount of the Company (including the guarantees for subsidiaries)
Total guarantee amount (A+B)
323.36
Percentage of the total guarantee amount to net assets of the Company (%)
16.85
Among which:
Amount of guarantees provided for shareholders, de facto controllers
and their related parties (C)
–
Amount of debt guarantees provided directly or indirectly for the
guaranteed objects with an asset-liability ratio of more than 70% (D)
272.84
Excess amount of the total guarantee over 50% of the net assets (E)
–
Total amount of the three guarantees mentioned above (C+D+E)
272.84
Undue guarantees with joint
and several liabilities
Bearing the principal, interest and other expenses of the bonds
258
Explanations on
guarantees
1.
Guarantees Provided by the Company
(1)
In 2017, as considered and approved at the fifth meeting of the
fourth session of the Board and the 2016 Annual General Meeting of
the Company, the Company provided a net capital guarantee with the
maximum amount of RMB1.9 billion to Huatai Asset Management.
The net capital guarantee of RMB1.9 billion has not been utilized
during the Reporting Period.
(2)
In 2018, as considered and approved at the sixteenth meeting of the
fourth session of the Board, the Company provided a net capital
guarantee with the maximum amount of RMB2.0 billion to Huatai
United Securities. The net capital guarantee will be available from
July 1, 2019. In 2022, Shenzhen Securities Regulatory Bureau
approved the Company to adjust the amount of the commitment on
the provision of net capital guarantee to Huatai United Securities in
2019 from RMB2.0 billion to RMB1.0 billion from June 21, 2022.
As at the end of the Reporting Period, the Company provided a net
capital guarantee with a total amount of RMB1.0 billion to Huatai
United Securities.
(3)
In 2020, as considered and approved at the seventh meeting of
the fifth session of the Board, the Company provided a liquidity
guarantee with a maximum amount of RMB2.0 billion to Huatai
United Securities, which had not been utilized during the Reporting
Period.
(4)
In 2021, as considered and approved at the eleventh meeting of the
fifth session of the Board and the 2021 First Extraordinary General
Meeting of the Company, the persons authorized by the general
mandate to issue onshore and offshore debt financing instruments of
the Company may sign relevant agreements, and the Company (as
the guarantor) has entered into a guarantee agreement with Citicorp
International Limited (as the trustee), to provide an unconditional
and irrevocable guarantee for USD1,300 million bonds and
additional USD100 million bonds issued by Pioneer Reward Limited,
a subsidiary of Huatai International. Among them, USD900 million
bonds were due for repayment in April 2024 and the corresponding
guarantee was automatically terminated.
(5)
In 2022, the Company (as the guarantor) entered into a guarantee
agreement with Citicorp International Limited (as the trustee), to
provide an unconditional and irrevocable guarantee for USD1,000
million bonds and RMB5,000 million bonds issued by Pioneer
Reward Limited, a subsidiary of Huatai International.
259
(6)
In 2023, the Company (as the guarantor) entered into a guarantee
agreement with Hongkong and Shanghai Banking Corporation
Limited (as the trustee), to provide an unconditional and irrevocable
guarantee for USD1,600 million bonds issued by Pioneer Reward
Limited, a subsidiary of Huatai International.
2.
Guarantees Provided by the Subsidiaries
During the Reporting Period, Huatai International and its
subsidiaries had provided guarantees for the benefits of their
subsidiaries in connection with their business operations, which are
mainly guarantees for corporate bonds and guarantees for medium-
term notes. The aggregate guaranteed amount was approximately
RMB11.123 billion as of the end of the Reporting Period.
In addition, Huatai International and its subsidiaries provided
guarantees, some of which were unlimited, for various International
Swaps and Derivatives Association Agreements (ISDA), Global
Master Repurchase Agreements (GMRA), Global Master Securities
Lending Agreements (GMSLA) and Broker-Dealer Agreements. The
above-mentioned unlimited guarantees were issued in accordance
with normal international banking and capital market practices,
which allowed the banks and other financial institutions which
Huatai International and its subsidiaries deal with to support large
market events and fluctuating requirements, therefore ensuring
Huatai International and its subsidiaries not constrained in the
normal course of business. Since Huatai International and its
subsidiaries are limited companies, the absolute maximum exposure
of these guarantees in aggregate would be limited to the respective
net assets of Huatai International and its subsidiaries.
3.
The aforesaid amount of debt guarantees provided directly or
indirectly for the guaranteed objects with an asset-liability ratio of
more than 70% was RMB27.284 billion, including: 1) guarantee
provided by the Company to Pioneer Reward Limited, a subsidiary
of Huatai International, for the issuance of USD3.1 billion bonds
and RMB5.0 billion bonds; 2) the guarantee provided by Huatai
International and its subsidiaries to meet the needs of the business
operation of their subsidiaries.
(III) Other material contracts
1.
According to the Rules Governing the Listing of Stocks on the Shanghai Stock
Exchange (
《上海證券交易所股票上市規則》
) and the Standards for the Contents
and Formats of Information Disclosure by Companies Offering Securities to the
Public No. 2 – Contents and Formats of Annual Report
《
(
公開發行證券的公司
信息披露內容與格式準則第
2
號 － 年度報告的內容與格式》
), the Group did not
enter into material contracts during the Reporting Period.
260
2.
The progress of relevant significant contracts disclosed during the Reporting
Period is as follows:
During the Reporting Period, the Construction Contract for the Work of Section I
of the Interior Decoration and Renovation of the Plaza of Huatai Securities (
《華
泰證券廣場室內裝飾裝修一標段工程施工合同》
) was performed normally, and
the Company had paid the contract price of RMB1,285,100 in accordance with the
contract. As of the end of the Reporting Period, the Company had made contract
payments of RMB138,177,900 in accumulation (excluding social insurance
premium paid on behalf, etc.), and the contract had been completely performed.
XIII. EXPLANATION ON PROGRESS IN USE OF FUNDS RAISED
All funds raised from the issuance of shares by the Company have been used up before the
Reporting Period.
XIV. DESCRIPTION OF OTHER MAJOR EVENTS THAT HAVE SIGNIFICANT IMPACTS
ON INVESTORS TO MAKE VALUE JUDGMENTS AND INVESTMENT DECISIONS
(I)
Change of shareholdings in subsidiaries
For details of change of shareholdings in subsidiaries during the Reporting Period,
please refer to “Major disposal of assets and shareholdings by the Company during
the Reporting Period” under “Major Operations during the Reporting Period” under
“Management Discussion and Analysis and Report of the Board” in this report.
(II)
Description of major events of the subsidiaries
1.
Huatai Purple Gold Investment
During the Reporting Period, Huatai Purple Gold Investment initiated the
establishment of Nantong Huatai Intelligent Manufacture and Technology
Industries Investment Partnership (Limited Partnership) (
南通華泰智造科技產
業投資合夥企業
(
有限合夥
)). As of the end of the Reporting Period, the total
subscription scale of such fund amounted to RMB820 million. Huatai Purple
Gold Investment, as a fund manager, an executive partner and a general partner,
contributed RMB250 million.
During the Reporting Period, Huatai Purple Gold Investment initiated the
establishment of Chengdu Huatai Tianfu Digital Intelligence Venture Capital
Partnership (Limited Partnership) (
成都華泰天府數智創業投資合夥企業
(
有限合
夥
)). As of the end of the Reporting Period, the total subscription scale of such
fund amounted to RMB501 million. Huatai Purple Gold Investment, as a fund
manager, an executive partner and a general partner, contributed RMB1 million.
261
During the Reporting Period, the total subscription scale of Nanjing Huatai
Xingong Industries Investment Fund (Limited Partnership) (
南京華泰新工產業投
資基金
(
有限合夥
)), established by Huatai Purple Gold Investment, increased from
RMB800 million to RMB920 million. As of the end of the Reporting Period, the
total subscription scale of such fund amounted to RMB920 million. Huatai Purple
Gold Investment, as a fund manager, an executive partner and a general partner,
contributed RMB250 million.
During the Reporting Period, the cancellation of industry and commerce
registration of Shengdao (Nanjing) Equity Investment Management Co., Ltd. (
盛
道
(
南京
)
股權投資管理有限公司
), a controlled subsidiary of Huatai Purple Gold
Investment, was completed.
During the Reporting Period, the cancellation of industry and commerce
registration of Shanghai Ruisi Investment (Limited Partnership) (
上海瑞肆投資中
心
(
有限合夥
)) managed by Huatai Purple Gold Investment, was completed.
2.
Huatai Asset Management
During the Reporting Period, the general manager of Huatai Asset Management
changed from Mr. Nie Tingjin to Mr. Jiang Xiaoyang.
3.
Huatai International
During the Reporting Period, Mr. Han Zhencong and Ms. Jiao Xiaoning served as
the directors of Huatai International.
During the Reporting Period, subsidiaries of Huatai International obtained the
following business qualifications:
(1)
Huatai Financial Holdings (Hong Kong) obtained the underwriting
qualification for the TOKYO PRO-BOND Market issued by the Tokyo Stock
Exchange of Japan.
(2)
A wholly-owned subsidiary of Huatai International was granted a stock
transaction code by stock market regulatory authorities in Vietnam, which
enabled such company to directly conduct transactions as a qualified
overseas investor in the Hochiminh Stock Exchange and Hanoi Stock
Exchange in Vietnam.
(3)
Huatai Securities (USA), Inc., a wholly-owned subsidiary of Huatai
International, obtained approval from the Nasdaq Stock Market in the United
States to add limited underwriting membership, which enabled such company
to assist initially listed companies with underwriting transactions.
262
4.
Jiangsu Equity Exchange
During the Reporting Period, the chairman of Jiangsu Equity Exchange changed
from Mr. Sun Hanlin to Mr. Zhang Anzhong.
(III) For other major events disclosed by the Company on China Securities Journal,
Shanghai Securities News, Securities Times, Securities Daily and the website of the
SSE (www.sse.com.cn) during the Reporting Period, please refer to Appendix IV.
Information Disclosures Index.
XV. MAIN OFF-BALANCE SHEET ITEMS THAT MAY AFFECT THE COMPANY’S
FINANCIAL SITUATION AND OPERATING RESULTS
For the main off-balance sheet items that may affect the Company’s financial situation and
operating results, please refer to “Guarantees” under “Material Contracts and Performance
Thereof” under “Major Events” in this report.
XVI. IMPORTANT MATTERS AFTER THE BALANCE SHEET DATE
(I)
Changes in Directors of the Company
On March 14, 2025, the Board of the Company received a written resignation report
from Ms. Yin Lihong, an executive Director. Ms. Yin Lihong has proposed to resign
from her positions as an executive Director of the sixth session of the Board of the
Company and as a member of the Nomination Committee of the Board due to work
adjustment, upon which she no longer holds any position in the Company. In accordance
with the relevant provisions of the Company Law and the Articles of Association, Ms.
Yin Lihong’s resignation did not result in the number of members of the Board of the
Company falling below the statutory minimum, nor did it affect the normal operation
of the Board of the Company. Her resignation took effect on the date on which her
resignation report was delivered to the Board.
(II)
Proposal or resolution on annual distribution
Please refer to “Important Notice” in this report.
(III) Material investment and financing activities
Please refer to “Description on Other Events after the Balance Sheet Date” under
“Events after the Balance Sheet Date” under “Financial Report” in this report.
(IV) Material litigation and arbitration
After the Reporting Period, the Company did not have any material litigation and
arbitration.
(V)
Business combination or disposal of subsidiary
In January 2025, the industrial and commercial registration modification procedures
for the transfer of its 20% equity interest in Jiangsu Equity Exchange to Jiangsu
Jincai Investment Co., Ltd. by the Company had been completed. The Company’s
shareholding in Jiangsu Equity Exchange, which is a participating subsidiary of the
Company, changed to 32%.
263
(VI) Relocation of securities branches
No.
Name before
relocation
Name after
relocation
Address after
relocation
Issue date
of license
1
Securities Branch in
South Street, Liyang
Securities Branch
in South Street,
Liyang
103, No. 628 Nanda
Street, New Century
Plaza, Licheng
Street, Liyang City
January 14, 2025
2
Securities Branch
in Ronghui Road,
Macheng
Securities Branch in
Jintong Avenue,
Macheng
No. 1-01, 1/F and
No. 2-01, 2/F
for commercial
purposes, Block 4,
Yingyuan Health
City, West of
Jintong Avenue,
Macheng Economic
Development Zone,
Huanggang City,
Hubei Province
January 14, 2025
3
Securities Branch in
Yonghe Temple,
Beijing
Securities Branch in
Yonghe Temple,
Beijing
501, 502, 512, 515
and 516, 5/F,
Building 2, 116,
1/F and 216, 2/F,
Building 1, No. 28
Andingmen East
Street, Dongcheng
District, Beijing
City
January 23, 2025
(VII) Other situations that might materially affect the financial position, results of
operation and cash flow of the Company after the Reporting Period
The Company had no other situations that might materially affect the financial position,
results of operation and cash flow of the Company after the Reporting Period.
264
CHANGES IN SHARES AND SHAREHOLDERS
I.
CHANGES IN SHARE CAPITAL
(I)
Statement of changes in shares
1.
Statement of changes in shares
Unit: Shares
Before the change
Increase/decrease (+, -) of the change
After the change
Number
Percentage
(%)
New
shares
issued
Bonus
shares
Shares
converted
from reserves
Others
Subtotal
Number
Percentage
(%)
I. Shares subject to selling restrictions
29,278,392
0.32
–
–
–
-15,352,513
-15,352,513
13,925,879
0.15
1. Shares held by the state
–
–
–
–
–
–
–
–
–
2. Shares held by state-owned
legal persons
–
–
–
–
–
–
–
–
–
3. Shares held by other domestic
investors
29,278,392
0.32
–
–
–
-15,352,513
-15,352,513
13,925,879
0.15
Including: Shares held by domestic
non-state-owned legal
persons
–
–
–
–
–
–
–
–
–
Shares held by domestic
natural persons
29,278,392
0.32
–
–
–
-15,352,513
-15,352,513
13,925,879
0.15
4. Shares held by foreign investors
–
–
–
–
–
–
–
–
–
Including: Shares held by overseas
legal persons
–
–
–
–
–
–
–
–
–
Shares held by overseas
natural persons
–
–
–
–
–
–
–
–
–
II. Tradable shares not subject to
selling restrictions
9,045,384,943
99.68
–
–
–
-32,008,541
-32,008,541
9,013,376,402
99.85
1. Ordinary shares in RMB
7,326,339,263
80.73
–
–
–
-32,008,541
-32,008,541
7,294,330,722
80.80
2. Domestic listed foreign shares
–
–
–
–
–
–
–
–
–
3. Overseas listed foreign shares
1,719,045,680
18.94
–
–
–
–
–
1,719,045,680
19.04
4. Others
–
–
–
–
–
–
–
–
–
III. Total shares
9,074,663,335
100.00
–
–
–
-47,361,054
-47,361,054
9,027,302,281
100.00
2.
Information on changes in shares
On January 10, 2024, the Company cancelled 45,278,495 A shares deposited in
the repo-securities account.
During the Reporting Period, the conditions for lifting the selling restrictions
of the second lock-up period under the Restricted Share Incentive Scheme of A
Shares of the Company have been fulfilled, a total of 13,269,954 restricted Shares
were released from selling restrictions, and were listed for trading on May 16,
2024.
265
During the Reporting Period, the Company repurchased and cancelled part or
all of 2,082,559 restricted A Shares granted to 175 incentive participants but
subject to selling restriction due to non-fully fulfillment of condition of individual
performance, release or termination of employment with the Company and other
circumstances. On September 20, 2024, the Company completed the repurchase
and cancellation of such restricted A Shares, and the total share capital of
the Company changed to 9,027,302,281 Shares, comprising 7,308,256,601 A
shares, representing approximately 80.96% of the total number of shares; and
1,719,045,680 H shares, representing approximately 19.04% of the total number of
shares.
3.
Impact of the change in shares on earnings per share, net asset value per share or
other financial indicators for the latest year and the latest period
In 2024, the total amount of shares decreased by 47,361,054 as the Company
completed the repurchase and cancellation of part of the restricted A Shares. Based
on the weighted average number, basic earnings per share in 2024 were RMB1.62,
diluted earnings per share were RMB1.62.
The net assets per share attributable to owners of the listed company as at the
end of 2024 were RMB21.23. Such net assets per share attributable to owners
of the listed company include perpetual bonds issued by the Company. Net of
the influence of perpetual bonds, net assets per share attributable to ordinary
shareholders of the listed company as at the end of 2024 were RMB18.10.
(II)
Changes in shares subject to selling restrictions
Unit: Shares
Name of shareholder
Number of shares
subject to selling
restrictions at the
beginning of the year
Number of shares
released from
selling restrictions
during the year
Increase in the
number of shares
subject to selling
restrictions
during the year
Number of shares
subject to selling
restrictions at the
end of the year
Reasons for
selling
restrictions
Date of release
from selling
restrictions
Incentive participants of
restricted A Shares
29,278,392
13,269,954
-2,082,559
13,925,879
Incentive scheme
of restricted A
Shares
See note for
details
Total
29,278,392
13,269,954
-2,082,559
13,925,879
/
/
266
Notes:
1.
Pursuant to the requirements under the Restricted Share Incentive Scheme of A Shares of Huatai
Securities Co., Ltd., which was disclosed by the Company on February 9, 2021, if the restricted Shares
granted under the incentive scheme meet the conditions of unlocking after 24 months from the date of
completion of registration of the corresponding granted portion of shares, the incentive participants
may release the restriction in three phases in the next 36 months in the proportion of 33%, 33% and
34%.
The registration date of the restricted Shares under the incentive scheme was April 6, 2021, and the
second lock-up period expired on April 5, 2024. The number of the unlocked Shares was 13,269,954
Shares, and the listing and trading date of the unlocked Shares was May 16, 2024.
2.
On September 20, 2024, the Company completed the repurchase and cancellation of 2,082,559
restricted A Shares.
II.
THE ISSUANCE AND LISTING OF SECURITIES
(I)
Issuance of securities during the Reporting Period
Currency: RMB
Types of shares and
their derivative securities
Date of
issue
Issue price
(or interest
rate)
Number of
securities issued
Date of
listing
Number of
securities
permitted to be
listed for trading
Ending
date of the
trading
Bonds (including enterprise bonds, corporate bonds and debt financing instruments of non-financial enterprises)
Short-term corporate bonds
2024-10-16
1.96%
RMB2.0 billion
2024-10-23
RMB2.0 billion
2025-03-17
Short-term corporate bonds
2024-11-11
1.90%
RMB4.8 billion
2024-11-19
RMB4.8 billion
2025-05-12
Short-term corporate bonds
2024-11-11
1.92%
RMB1.0 billion
2024-11-19
RMB1.0 billion
2025-11-12
Short-term corporate bonds
2024-12-06
1.75%
RMB6.0 billion
2024-12-16
RMB6.0 billion
2025-06-09
Short-term corporate bonds
2024-12-20
1.67%
RMB3.0 billion
2024-12-30
RMB3.0 billion
2025-08-22
Perpetual subordinated
bonds
2024-11-22
2.39%
RMB2.6 billion
2024-12-02
RMB2.6 billion
N/A
267
Information of the issuance of securities during the Reporting Period:
1.
Short-term corporate bonds
On October 16, 2024, the Company publicly issued the 2024 Short-term Corporate
Bonds of Huatai Securities (First Tranche) to professional investors. The amount
of the said bonds came to RMB2.0 billion at an issue price of RMB100 per bond,
carrying a 151-day fixed rate with a coupon rate of 1.96%. Such bonds were listed
for trading on October 23, 2024. The abbreviation and code of the bonds were “24
Huatai S1” and “241764.SH”, respectively, and the amount of the bonds permitted
to be listed for trading came to RMB2.0 billion with the trading to be ended on
March 17, 2025.
On November 11, 2024, the Company publicly issued the 2024 Short-term
Corporate Bonds of Huatai Securities (Second Tranche) to professional investors.
The amount of the said bonds came to RMB5.8 billion at an issue price of
RMB100 per bond, carrying 181-day and 1-year fixed rates. The amount of the
181-day bonds came to RMB4.8 billion with a coupon rate of 1.90%, while the
amount of the 1-year bonds came to RMB1.0 billion with a coupon rate of 1.92%.
Such bonds were listed for trading on November 19, 2024. The abbreviation and
code of the 181-day bonds were “24 Huatai S2” and “241797.SH”, respectively,
and the amount of the bonds permitted to be listed for trading came to RMB4.8
billion with the trading to be ended on May 12, 2025; the abbreviation and code
of the 1-year bonds were “24 Huatai S3” and “241798.SH”, respectively, and the
amount of the bonds permitted to be listed for trading came to RMB1.0 billion
with the trading to be ended on November 12, 2025.
On December 6, 2024, the Company publicly issued the 2024 Short-term
Corporate Bonds of Huatai Securities (Third Tranche) (Type I) to professional
investors. The amount of the said bonds came to RMB6.0 billion at an issue price
of RMB100 per bond, carrying 182-day fixed rates with a coupon rate of 1.75%.
Such bonds were listed for trading on December 16, 2024. The abbreviation and
code of the bonds were “24 Huatai S4” and “242117.SH”, respectively, and the
amount of the bonds permitted to be listed for trading came to RMB6.0 billion
with the trading to be ended on June 9, 2025.
On December 20, 2024, the Company publicly issued the 2024 Short-term
Corporate Bonds of Huatai Securities (Fourth Tranche) to professional investors.
The amount of the said bonds came to RMB3.0 billion at an issue price of
RMB100 per bond, carrying 243-day fixed rates with a coupon rate of 1.67%.
Such bonds were listed for trading on December 30, 2024. The abbreviation and
code of the bonds were “24 Huatai S6” and “242135.SH”, respectively, and the
amount of the bonds permitted to be listed for trading came to RMB3.0 billion
with the trading to be ended on August 22, 2025.
268
2.
Perpetual subordinated bonds
On November 22, 2024, the Company publicly issued the 2024 Perpetual
Subordinated Bonds of Huatai Securities (First Tranche) to professional investors.
The amount of the said bonds came to RMB2.6 billion at an issue price of
RMB100 per bond, with a coupon rate of 2.39% during the first 5 interest-bearing
years, with every 5 interest-bearing years as a repricing cycle. The issuer has the
right to choose to extend the term of the bonds by 1 repricing cycle (that is, to
extend it by 5 years) or choose to settle the payment for the bonds in full at the
end of each repricing cycle. Such bonds were listed for trading on December 2,
2024. The abbreviation and code of the bonds were “24 Huatai Y1” and “242041.
SH”, respectively, and the amount of the bonds permitted to be listed for trading
came to RMB2.6 billion.
3.
Offshore bonds
During the Reporting Period, in order to supplement its working capital and repay
its debt financing instruments, Huatai International Finance Limited, a subsidiary
of Huatai International, issued the medium-term notes of approximately USD593
million in aggregate. Huatai International provided unconditional and irrevocable
guarantee for the medium term note program.
4.
Structured notes
The Company cumulatively issued 2,891 structured notes, with a total amount
of RMB32.061 billion in 2024. As of December 31, 2024, the Company had 372
structured notes in duration period, with an amount of RMB20.241 billion.
269
(II)
Changes in total number of the shares and shareholding structure of the Company
and changes in structure of assets and liabilities of the Company
Please refer to “Changes in Share Capital” in this section for the details of changes in
total number of the shares and shareholding structure of the Company.
Please refer to “Analysis of assets and liabilities” under “Major Operations during the
Reporting Period” in “Management Discussion and Analysis and Report of the Board”
of this report for the details of changes in structure of assets and liabilities of the
Company.
(III) No Existing Shares held by employees during the Reporting Period
III.
INFORMATION OF SHAREHOLDERS AND DE FACTO CONTROLLERS
(I)
Total number of shareholders
Total number of shareholders of ordinary shares as of
the end of the Reporting Period
241,442
Total number of shareholders of ordinary shares as of the end of last
month prior to the date on which the annual report shall be disclosed
225,362
Total number of shareholders of preferred shares whose rights
have been restored as of the end of the Reporting Period
–
Total number of shareholders of preferred shares whose voting rights
have been restored as of the end of last month prior to the date
on which the annual report shall be disclosed
–
Among the total number of shareholders of ordinary shares as of the end of the
Reporting Period, shareholders of A Shares came to 235,072 and registered shareholders
of H Shares came to 6,370. Among the total number of shareholders of ordinary shares
as of the end of last month (February 28, 2025) prior to the date on which the annual
report shall be disclosed, shareholders of A Shares came to 219,021 and registered
shareholders of H Shares came to 6,341.
270
(II) Shareholding of top ten shareholders and top ten holders of tradable shares (or
holders of shares not subject to selling restrictions) as of the end of the Reporting
Period
Unit: Shares
Shareholding of top ten shareholders (excluding lent shares by way of refinancing)
Increase/decrease
Number of shares
held as at the end
Number
of shares
held subject
Pledged, marked or
frozen shares
Nature of
shareholder
Name of shareholder
(in full name)
during the
Reporting Period
of the Reporting
Period
Percentage
(%)
to selling
restrictions
Status of
shares
Number of
shares
Jiangsu Guoxin Investment
Group Limited
–
1,373,481,636
15.21
–
Nil
–
State-owned
legal person
HKSCC Nominees Limited
366,600
1,266,429,848
14.03
–
Nil
–
Foreign legal person
Hong Kong Securities Clearing
Company Limited
193,750,761
540,003,793
5.98
–
Nil
–
Foreign legal person
Jiangsu Communications
Holding Co., Ltd.
–
489,065,418
5.42
–
Nil
–
State-owned
legal person
Govtor Capital Group Co., Ltd.
318,000
356,233,206
3.95
–
Nil
–
State-owned
legal person
Jiangsu SOHO Holdings
Group Co., Ltd.
–
277,873,788
3.08
–
Nil
–
State-owned
legal person
China Securities Finance
Corporation Limited
–
152,906,738
1.69
–
Nil
–
Unknown
Jiangsu SOHO International
Group Corp.
–
135,838,367
1.50
–
Nil
–
State-owned
legal person
Jiangsu Hiteker High-tech
Co., Ltd.
–
123,169,146
1.36
–
Unknown
123,169,146
Domestic
non-state-owned
legal person
Hangzhou Haoyue Enterprise
Management Co., Ltd.
[Note]
-168,119,652
100,079,581
1.11
–
Nil
–
Domestic
non-state-owned
legal person
271
Shareholding of top ten holders of shares not subject to selling restrictions (excluding lent shares by way of refinancing)
Number of
tradable shares
not subject to
Class and number of shares
Name of shareholder
selling restrictions
Class
Number
Jiangsu Guoxin Investment Group Limited
1,373,481,636
Ordinary shares in RMB
1,271,072,836
Overseas listed foreign shares
102,408,800
HKSCC Nominees Limited
1,266,429,848
Overseas listed foreign shares
1,266,429,848
Hong Kong Securities Clearing Company Limited
540,003,793
Ordinary shares in RMB
540,003,793
Jiangsu Communications Holding Co., Ltd.
489,065,418
Ordinary shares in RMB
452,065,418
Overseas listed foreign shares
37,000,000
Govtor Capital Group Co., Ltd.
356,233,206
Ordinary shares in RMB
342,028,006
Overseas listed foreign shares
14,205,200
Jiangsu SOHO Holdings Group Co., Ltd.
277,873,788
Ordinary shares in RMB
76,460,788
Overseas listed foreign shares
201,413,000
China Securities Finance Corporation Limited
152,906,738
Ordinary shares in RMB
152,906,738
Jiangsu SOHO International Group Corp.
135,838,367
Ordinary shares in RMB
41,132,567
Overseas listed foreign shares
94,705,800
Jiangsu Hiteker High-tech Co., Ltd.
123,169,146
Ordinary shares in RMB
123,169,146
Hangzhou Haoyue Enterprise Management Co., Ltd.
100,079,581
Ordinary shares in RMB
100,079,581
Description of special repurchase accounts for the top
ten shareholders
There are no special repurchase accounts for the top ten shareholders.
Description of the voting rights entrusted by the
above shareholders, the voting rights the above
shareholders are entrusted with and the voting
rights the above shareholders abstained from
There are no voting rights entrusted by the above shareholders, the voting
rights the above shareholders are entrusted with and the voting rights the
above shareholders abstained from.
Description of the related party relationships or
acting in concert among the above shareholders
Guoxin Group, Communications Holding, Govtor Capital and Jiangsu
SOHO Holdings Group Co., Ltd. are wholly owned by Jiangsu SASAC.
Jiangsu SOHO Holdings Group Co., Ltd. is the controlling shareholder
of Jiangsu SOHO International Group Corp. Apart from the above, the
Company is not aware of any related party relationship among other
shareholders or whether such shareholders are parties acting in concert as
specified in the Regulations on the Takeover of Listed Companies.
Explanation of shareholders of preferred shares with
restored voting rights and the number of shares
held by them
There are no shareholders of preferred shares of the Company.
Notes:
1.
The class of shareholders of ordinary shares in RMB (A Shares) represents the class of accounts
held by them registered with Shanghai Branch of China Securities Depository and Clearing
Corporation Limited.
2.
Among the holders of overseas listed foreign shares (H Shares) of the Company, shares of
non-registered shareholders are held by HKSCC Nominees Limited on their behalf. As of the end
of the Reporting Period, Guoxin Group, Communications Holding, Govtor Capital, Jiangsu SOHO
Holdings Group Co., Ltd. and Jiangsu SOHO International Group Corp. acquired, via Southbound
Trading, 102,408,800, 37,000,000, 14,205,200, 201,413,000 and 94,705,800 H Shares of the
Company, respectively, which are also being held by HKSCC Nominees Limited. These shares
are specifically and separately listed at the time of disclosure of this report; should such shares be
included, the actual number of shares held by HKSCC Nominees Limited on their behalf would
have been 1,716,162,648, representing approximately 19.01% of the Company’s total shares.
3.
Hong Kong Securities Clearing Company Limited is the nominal holder of the A Shares of the
Company held by the investors in Northbound Trading under Shanghai-Hong Kong Stock Connect.
272
4.
Citibank, National Association is the depositary of the Company’s GDRs, and the domestic
underlying A Shares represented by the GDRs are legally registered under its name. According to
the statistics provided by the depositary, the Company had a total of 105,941 GDRs in the duration
period as of the end of the Reporting Period, accounting for approximately 0.13% of the approved
number for issuance by the CSRC.
5.
Alibaba (China) Technology Co., Ltd. held 268,199,233 A Shares of the Company as at the end
of 2023 and reassigned the entire A Shares of the Company held by it into the name of Hangzhou
Haoyue Enterprise Management Co., Ltd., a subordinate company of Alibaba Group Holding
Limited, by way of spin-off and transfer in January 2024.
Lent shares by way of refinancing by shareholders holding 5% or more of the shares,
top ten shareholders and top ten shareholders of tradable shares not subject to selling
restrictions are as follows:
Unit: Shares
Lent shares by way of refinancing by shareholders holding 5% or more of the shares, top ten shareholders
and top ten shareholders of tradable shares not subject to selling restrictions
Name of shareholder (in full name)
Total number of shares
held through ordinary
account and credit account
as at the beginning of the
Reporting Period
Lent shares by way of
refinancing and
outstanding as at the
beginning of the
Reporting Period
Total number of shares
held through ordinary
account and credit
account as at the end
of the Reporting Period
Lent shares by way of
refinancing and
outstanding as at the end
of the Reporting Period
Total
number
Percentage
(%)
Total
number
Percentage
(%)
Total
number
Percentage
(%)
Total
number
Percentage
(%)
Govtor Capital Group Co., Ltd.
341,710,006
3.7655
318,000
0.0035
342,028,006
3.7888
–
–
Note: Total number of shares presented in the above table is the total number of shares held by such
shareholder through A shares ordinary securities account and A shares credit securities account,
excluding the number of H Shares of the Company held by it.
During the Reporting Period, there was no addition or withdrawal in the top ten
shareholders and top ten shareholders of tradable shares not subject to selling
restrictions of the Company due to shares lent or returned by refinancing.
273
Number of shares held by top ten holders of shares subject to selling restrictions and
relevant selling restrictions:
Unit: Shares
Listing and trading of shares
subject to selling restrictions
No.
Name of holders of shares
subject to selling restrictions
Number
of shares
held subject
to selling
restrictions
Permitted time
for listing
and trading
Number of
additional
shares
permitted to
be listed
and traded
Selling
restrictions
1
Zhou Yi
244,800
See note for details
–
See note for details
2
Han Zhencong
204,000
See note for details
–
See note for details
3
Sun Hanlin
204,000
See note for details
–
See note for details
4
Jiang Jian
204,000
See note for details
–
See note for details
5
Zhang Hui
204,000
See note for details
–
See note for details
6
Chen Tianxiang
204,000
See note for details
–
See note for details
7
Jiao Xiaoning
170,000
See note for details
–
See note for details
8
Jiao Kai
170,000
See note for details
–
See note for details
9
Wang Chong
170,000
See note for details
–
See note for details
10
Incentive participants granted
under the Restricted Share
Incentive Scheme of A Shares
of the Company
(16 individuals)
68,000
See note for details
–
See note for details
Description of the related party
relationships or acting in concert
among the above shareholders
The Company is not aware of any related party relationship or
acting in concert arrangement.
Note: The above shares subject to selling restrictions represent the shares granted by the Company to the
incentive participants due to the implementation of incentive scheme of restricted A Shares. Details
of listing and trading of shares subject to selling restrictions and selling restrictions are available in
the Incentive Scheme of Restricted A Shares disclosed by the Company on the website of the SSE
on February 9, 2021.
As of the end of the Reporting Period, there were totally 16 incentive participants who
held 68,000 restricted A Shares, and were listed as the tenth shareholder subject to
selling restrictions.
(III)
A strategic investor or common legal person who became one of the top ten
shareholders as a result of subscription for new shares allotted to them
During the Reporting Period, the Company did not have any strategic investor or
common legal person who became one of the top ten shareholders as a result of
subscription for new shares allotted to them.
274
IV.
CONTROLLING SHAREHOLDERS AND DE FACTO CONTROLLERS
(I)
Controlling Shareholders
There are no controlling shareholders with more than 50% shareholding of the
Company.
(II) De facto controllers
1
Legal person
Name
State-owned Assets Supervision and
Administration Commission of Jiangsu
Provincial Government
Person in charge or legal
representative of the unit
Xie Zhengyi
275
2
Framework of the ownership and controlling relationship between the Company
and the de facto Controllers
State-owned Assets Supervision and Administration Commission of Jiangsu Provincial Government
75.08%
100%
100%
100%
100%
100%
100%
100%
100%
15.2148%
5.4176%
3.9462%
3.0781%
1.5048%
0.1233%
0.0410%
0.1329%
0.1959%
Jiangsu Guoxin Investment Group Limited
Jiangsu Communications Holding Co., Ltd.
Govtor Capital Group Co., Ltd.
Jiangsu SOHO Holdings Group Co., Ltd.
Jiangsu SOHO International Group Corp.
Jiangsu Suhui Assets Management Co., Ltd.
Jiangsu SOHO Xinzhi Group Co., Ltd.
(
江蘇省蘇豪新智集團有限公司
)
Jiangsu Coast Development
Group Co., Ltd.
Jiangsu Coast Development Investment Co., Ltd.
Huatai Securities Co., Ltd.
Note: During the Reporting Period, the name of Jiangsu Overseas Group Co., Ltd. was changed to
Jiangsu SOHO Xinzhi Group Co., Ltd.
3
De facto controllers did not control the Company through trust or other asset
management programs
276
V.
DURING THE REPORTING PERIOD, THERE WERE NO CIRCUMSTANCES
WHERE THE CUMULATIVE NUMBER OF SHARES PLEDGED BY THE
CONTROLLING SHAREHOLDERS OR THE LARGEST SHAREHOLDER AND
PERSONS ACTING IN CONCERT WITH THEM ACCOUNTED FOR MORE THAN
80% OF THE COMPANY’S SHARES HELD BY THEM
VI.
OTHER LEGAL-PERSON SHAREHOLDERS WITH MORE THAN 10%
SHAREHOLDING
Unit: 100 million Yuan
Currency: RMB
Name of legal-person
shareholder
Person in charge or
legal representative
of the unit
Date of
establishment
Organization code
Registered
capital
Main businesses or
management activities
Jiangsu Guoxin
Investment Group
Limited
Dong Liang
February 22, 2002
91320000735724800G
500
Investment, management, operation,
transfer of state-owned capital; enterprise
trusteeship, assets restructuring,
management consultation, house leasing
and other businesses upon approval.
Remarks
Shares held by HKSCC Nominees Limited are owned by the non-registered holders of H Shares.
VII. THERE WERE NO RESTRICTIONS ON SHAREHOLDING REDUCTION DURING
THE REPORTING PERIOD
VIII.
SPECIFIC IMPLEMENTATION OF SHARE REPURCHASE IN THE REPORTING
PERIOD
Currency: RMB
Name of share repurchase plan
Repurchase and Cancellation of Part of the
Restricted A Shares
Date of share repurchase plan disclosed
April 13, 2024
Number of shares repurchased and
percentage to the total share capital
The total number of the Restricted Shares to be
repurchased and cancelled for this time is 2,082,559,
representing approximately 0.02% of the total share
capital of the Company as at April 13, 2024
Amount of repurchase (Yuan)
15,348,459.83
Period of repurchase
September 20, 2024
Purpose of repurchase
Cancellation
Number of shares repurchased (shares)
2,082,559
Number of shares repurchased as
a percentage of the underlying shares
under the stock incentive plan
4.58%
Progress of the Company to reduce
shareholding of shares repurchased
through centralized price bidding
N/A
277
IX.
SUBSTANTIAL SHAREHOLDERS’ AND OTHER PERSONS’ INTERESTS AND
SHORT POSITIONS IN SHARES AND UNDERLYING SHARES
As of December 31, 2024, as far as the Company and the Directors are aware after having
made all reasonable enquiries, the following persons (other than the Directors, Supervisors
or chief executives of the Company) held interests or short positions in shares or underlying
shares which shall be disclosed to the Company under the provisions of Divisions 2 and 3 of
Part XV of the SFO and were recorded in the register required to be kept by the Company
under Section 336 of the SFO:
No.
Name of
substantial
shareholders
Class of
shares
Nature of
interests
Number of
shares held
(share)
Percentage of
the total
issued
shares of the
Company (%)
Percentage of
the total
issued
A Shares/H
Shares of the
Company (%)
Long
position
(Note 2)
/short
position
(Note 3)
/
shares available
for lending
1
Jiangsu Guoxin
Investment
Group Limited
A Shares
Beneficial owner
1,271,072,836
14.08
17.39
Long position
H Shares
(Southbound
Trading)
Beneficial owner
102,408,800
1.13
5.96
Long position
2
Jiangsu
Communications
Holding
Co., Ltd.
A Shares
Beneficial owner
452,065,418
5.01
6.19
Long position
H Shares
(Southbound
Trading)
Beneficial owner
37,000,000
0.41
2.15
Long position
3
Jiangsu SOHO
Holdings Group
Co., Ltd.
A Shares
Beneficial owner
76,460,788
0.85
1.05
Long position
Interests of
controlled
corporations
44,832,567
0.50
0.61
Long position
H Shares
(Southbound
Trading)
Beneficial owner
201,413,000
2.23
11.72
Long position
Interests of
controlled
corporations
105,835,800
1.17
6.16
Long position
Notes:
1.
Under Section 336 of the SFO, forms disclosing interests shall be submitted by shareholders of the
Company upon satisfaction of certain conditions. Changes of shareholders’ shareholdings in the
Company are not required to inform the Company and the Hong Kong Stock Exchange unless certain
conditions are satisfied. Therefore, there could be differences between substantial shareholders’ latest
shareholdings in the Company and the shareholding information reported to the Hong Kong Stock
Exchange.
Jiangsu SOHO Holdings Group Co., Ltd. directly held a long position in 76,460,788 A Shares and
201,413,000 H Shares of the Company, and, through its controlled corporation (namely Jiangsu SOHO
International Group Corp. (
江蘇蘇豪國際集團股份有限公司
)), indirectly held a long position in
41,132,567 A Shares and 94,705,800 H Shares of the Company; through its controlled corporation
(namely Jiangsu SOHO Xinzhi Group Co., Ltd.), indirectly held a long position in 3,700,000 A Shares
of the Company; through its controlled corporation (namely Jiangsu Suhui Assets Management Co.,
Ltd.), indirectly held a long position in 11,130,000 H Shares of the Company.
278
2.
A shareholder has a “long position” if such shareholder has interests in shares, including interests
through holding, writing or issuing financial instruments (including derivatives), under which such
shareholder (1) has a right to purchase the underlying shares; (2) is under an obligation to purchase the
underlying shares; (3) has a right to receive payments if the price of the underlying shares increases;
or (4) has a right to avoid or reduce a loss if the price of the underlying shares increases.
3.
A shareholder has a “short position” if such shareholder borrows shares under a securities borrowing
and lending agreement, or holds, writes or issues financial instruments (including derivatives) under
which such shareholder (1) has a right to require another person to purchase the underlying shares;
(2) is under an obligation to deliver the underlying shares; (3) has a right to receive payments if the
price of the underlying shares declines; or (4) has a right to avoid or reduce a loss if the price of the
underlying shares declines.
Save as disclosed above, the Company is not aware of any other person (other than the Directors,
Supervisors and chief executives of the Company) having any interests or short positions in the shares
or underlying shares of the Company as at December 31, 2024, which shall be recorded in the register
pursuant to Section 336 of the SFO.
X.
DIRECTORS’, SUPERVISORS’ AND CHIEF EXECUTIVES’ INTERESTS AND
SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES OR DEBENTURES
OF THE COMPANY AND ITS ASSOCIATED CORPORATIONS
As of the end of the Reporting Period, details on the shares held by the Director(s) of the
Company due to the Company’s implementation of the Restricted Share Incentive Scheme of
A Shares are as follows:
No. Name
Class of
shares
Nature of
interests
Number of
shares held
(share)
Percentage
of the total
issued
shares
of the
Company
(%)
Percentage
of the total
issued A
Shares/
H Shares
of the
Company
(%)
Long
position/
short
position/
shares
available
for lending
1
Zhou Yi
A Shares
Beneficial
owner
720,000
0.008
0.010
Long
position
Save as disclosed above, as of December 31, 2024, the Company was not aware of any other
Directors, Supervisors or chief executives of the Company having any interests or short
positions in the shares, underlying shares or debentures of the Company or its associated
corporations, which shall be notified to the Company and the Hong Kong Stock Exchange
pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions
which were taken or deemed to have under such provisions of the SFO) or which would be
required, pursuant to section 352 of the SFO, to be recorded in the register of interests, or
which shall, pursuant to the Model Code, be notified to the Company and the Hong Kong
Stock Exchange.
279
XI.
REPURCHASE, SALE OR REDEMPTION OF THE LISTED SECURITIES OF THE
COMPANY AND ITS SUBSIDIARIES
Save as the repurchase and cancellation of part of the restricted A Shares stated in “Specific
Implementation of Share Repurchase in the Reporting Period” in this section of this report
and “Share Incentive Scheme, Employee Stock Ownership Plan or Other Employee Incentives
Measures and Their Implication” under “Corporate Governance” in this report, the Company
and its subsidiaries have not repurchased, sold or redeemed any listed securities of the
Company and its subsidiaries during the Reporting Period (including sales of treasury shares
(as defined in the Hong Kong Listing Rules)).
As of the end of the Reporting Period, the Company did not hold any treasury shares.
XII. ARRANGEMENT FOR DIRECTORS AND SUPERVISORS TO PURCHASE SHARES
OR DEBENTURES
Save for the incentive plan stated in “Share Incentive Scheme, Employee Stock Ownership
Plan or Other Employee Incentives Measures and Their Implication” under “Corporate
Governance” in this report, at no time during the Reporting Period has the Company,
its holding companies or any of its subsidiaries or fellow subsidiaries, entered into any
arrangements to enable the Directors and Supervisors to acquire benefits by means of the
purchase of shares in, or debentures of, the Company or any other corporate bodies.
XIII.
THE COMPANY HAD NO PREFERRED SHARES
280
BONDS
I.
CORPORATE BONDS (INCLUDING ENTERPRISE BONDS) AND NON-FINANCIAL CORPORATE DEBT FINANCING
INSTRUMENTS
(I)
During the Reporting Period, the Company had no enterprise bonds
(II) Corporate Bonds
1.
Basic information on corporate bonds
Information on corporate bonds of the Company in duration as at the date on which the annual report was approved to
publish is as follows:
Unit: 100 million Yuan
Currency: RMB
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2020 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Qualified Investors (Second tranche)
20 Huatai G3
163482.SH
2020-4-27
2020-4-29
2025-4-29
35
2.90
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
Shenwan Hongyuan
Financing Services, CICC,
CDB Securities
Shenwan
Hongyuan
Securities
For qualified
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
281
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2020 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Qualified Investors (Third tranche)
20 Huatai G4
163558.SH
2020-5-19
2020-5-21
2025-5-21
30
3.20
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
Shenwan Hongyuan
Financing Services, CICC,
CDB Securities
Shenwan
Hongyuan
Securities
For qualified
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2020 Subordinated Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (First tranche)
20 Huatai C1
175409.SH
2020-11-11
2020-11-13
2025-11-13
50
4.48
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC
Shenwan
Hongyuan
Securities
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
282
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2021 Subordinated Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (First tranche)
21 Huatai C1
175721.SH
2021-1-27
2021-1-29
2026-1-29
90
4.50
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC
Shenwan
Hongyuan
Securities
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Third tranche)
21 Huatai G4
188106.SH
2021-5-13
2021-5-17
2026-5-17
60
3.71
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC
Shenwan
Hongyuan
Securities
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Fourth tranche) (Type II)
21 Huatai G6
188140.SH
2021-5-20
2021-5-24
2026-5-24
20
3.63
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC
Shenwan
Hongyuan
Securities
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
283
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Seventh tranche) (Type II)
21 Huatai 12
188325.SH
2021-9-3
2021-9-7
2031-9-7
27
3.78
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC
Shenwan
Hongyuan
Securities
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2021 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (First tranche)
21 Huatai Y1
188785.SH
2021-9-15
2021-9-17
N/A
30
3.85
Interest to be paid
annually under the
condition that the
issuer does not
exercise the right
to defer interest
payments
Huatai United Securities,
CICC
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Eighth tranche) (Type II)
21 Huatai 14
188875.SH
2021-10-14
2021-10-18
2031-10-18
34
3.99
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC
Shenwan
Hongyuan
Securities
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
284
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Ninth tranche) (Type II)
21 Huatai 16
188927.SH
2021-10-21
2021-10-25
2031-10-25
11
3.94
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC
Shenwan
Hongyuan
Securities
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2021 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Second tranche)
21 Huatai Y2
188942.SH
2021-10-26
2021-10-28
N/A
50
4.00
Interest to be paid
annually under the
condition that the
issuer does not
exercise the right
to defer interest
payments
Huatai United Securities,
CICC
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2021 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Third tranche)
21 Huatai Y3
185019.SH
2021-11-16
2021-11-18
N/A
20
3.80
Interest to be paid
annually under the
condition that the
issuer does not
exercise the right
to defer interest
payments
Huatai United Securities,
CICC
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
285
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2022 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (First tranche)
22 Huatai Y1
185337.SH
2022-1-24
2022-1-26
N/A
27
3.49
Interest to be paid
annually under the
condition that the
issuer does not
exercise the right
to defer interest
payments
Huatai United Securities,
CICC
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2022 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Second tranche)
22 Huatai Y2
185388. SH
2022-7-7
2022-7-11
N/A
30
3.59
Interest to be paid
annually under the
condition that the
issuer does not
exercise the right
to defer interest
payments
Huatai United Securities,
CICC
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Fourth tranche)
22 Huatai G4
137780.SH
2022-9-1
2022-9-5
2025-9-5
20
2.52
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities, Kaiyuan
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
286
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Fifth tranche)
22 Huatai G5
137814.SH
2022-9-8
2022-9-13
2025-9-13
30
2.50
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities, Kaiyuan
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2022 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Third tranche)
22 Huatai Y3
137604.SH
2022-10-19
2022-10-21
N/A
35
3.20
Interest to be paid
annually under the
condition that the
issuer does not
exercise the right
to defer interest
payments
Huatai United Securities,
CICC
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Sixth tranche) (Type II)
22 Huatai G7
138598.SH
2022-11-17
2022-11-21
2027-11-21
14
3.18
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities, Kaiyuan
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
287
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Eighth tranche) (Type I)
22 Huatai 10
138709.SH
2022-12-8
2022-12-12
2025-12-12
20
3.35
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities, Kaiyuan
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Eighth tranche) (Type II)
22 Huatai 11
138710.SH
2022-12-8
2022-12-12
2027-12-12
5
3.49
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities, Kaiyuan
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Second tranche) (Type II)
23 Huatai G3
138845.SH
2023-1-12
2023-1-16
2028-1-16
20
3.48
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities, Kaiyuan
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
288
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Third tranche)
23 Huatai G4
138857.SH
2023-2-2
2023-2-6
2026-2-6
45
3.23
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities, Kaiyuan
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Fourth tranche)
23 Huatai G5
138886.SH
2023-2-9
2023-2-13
2028-2-13
40
3.39
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Fifth tranche) (Type I)
23 Huatai G6
138915.SH
2023-2-23
2023-2-27
2026-2-27
15
3.14
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
289
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Fifth tranche) (Type II)
23 Huatai G7
138916.SH
2023-2-23
2023-2-27
2028-2-27
22
3.36
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Sixth tranche) (Type I)
23 Huatai G8
115346.SH
2023-5-8
2023-5-10
2025-7-10
17
2.82
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Sixth tranche) (Type II)
23 Huatai G9
115347.SH
2023-5-8
2023-5-10
2028-5-10
7
3.07
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
290
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Seventh tranche)
23 Huatai 10
115367.SH
2023-8-22
2023-8-24
2026-8-24
20
2.64
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2023 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (First tranche)
23 Huatai Y1
115931.SH
2023-9-6
2023-9-8
N/A
25
3.46
Interest to be paid
annually under the
condition that the
issuer does not
exercise the right
to defer interest
payments
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, CDB Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Eighth tranche) (Type I)
23 Huatai 11
115368.SH
2023-9-19
2023-9-21
2026-9-21
25
2.89
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
291
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Ninth tranche) (Type I)
23 Huatai 13
240068.SH
2023-10-12
2023-10-16
2025-10-16
10
2.8
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Ninth tranche) (Type II)
23 Huatai 14
240069.SH
2023-10-12
2023-10-16
2033-10-16
16
3.35
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2023 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Second tranche)
23 Huatai Y2
240109.SH
2023-10-18
2023-10-20
N/A
40
3.58
Interest to be paid
annually under the
condition that the
issuer does not
exercise the right
to defer interest
payments
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
292
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Tenth tranche) (Type I)
23 Huatai 15
240158.SH
2023-11-2
2023-11-6
2026-8-6
10
2.83
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued
to Professional Investors (Tenth tranche) (Type II)
23 Huatai 16
240159.SH
2023-11-2
2023-11-6
2033-11-6
25
3.3
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China Industrial
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2023 Corporate Bonds of Huatai Securities Co., Ltd. Non-publicly
Issued to Professional Investors (First tranche) (Type II)
23 Huatai F2
253163.SH
2023-11-23
2023-11-27
2026-11-27
28
3.07
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC
Shenwan
Hongyuan
Securities
For professional
investors
One-click-order,
price-enquiry,
bidding and
negotiating
293
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2023 Corporate Bonds of Huatai Securities Co., Ltd. Non-publicly
Issued to Professional Investors (Second tranche) (Type II)
23 Huatai F4
253350.SH
2023-12-13
2023-12-15
2026-12-15
36
3.08
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC
Shenwan
Hongyuan
Securities
For professional
investors
One-click-order,
price-enquiry,
bidding and
negotiating
2024 Short-Term Corporate Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Second tranche) (Type I)
24 Huatai S2
241797.SH
2024-11-11
2024-11-13
2025-5-13
48
1.9
One-off payment of
principal and interest
upon expiration
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC, Caitong
Securities
Shenwan
Hongyuan
Securities
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
294
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2024 Short-Term Corporate Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Second tranche) (Type
II)
24 Huatai S3
241798.SH
2024-11-11
2024-11-13
2025-11-13
10
1.92
One-off payment of
principal and interest
upon expiration
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC, Caitong
Securities
Shenwan
Hongyuan
Securities
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2024 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (First tranche)
24 Huatai Y1
242041.SH
2024-11-22
2024-11-26
N/A
26
2.39
Interest to be paid
annually under the
condition that the
issuer does not
exercise the right
to defer interest
payments
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2024 Short-Term Corporate Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Third tranche) (Type I)
24 Huatai S4
242117.SH
2024-12-6
2024-12-10
2025-6-10
60
1.75
One-off payment of
principal and interest
upon expiration
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC, Caitong
Securities
Shenwan
Hongyuan
Securities
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
295
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2024 Short-Term Corporate Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Fourth tranche)
24 Huatai S6
242135.SH
2024-12-20
2024-12-24
2025-8-24
30
1.67
One-off payment of
principal and interest
upon expiration
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC, Caitong
Securities
Shenwan
Hongyuan
Securities
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2025 Short-Term Corporate Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (First tranche)
25 Huatai S1
242235.SH
2025-1-6
2025-1-8
2025-10-16
32
1.6
One-off payment of
principal and interest
upon expiration
Huatai United Securities,
Shenwan Hongyuan
Securities, CICC, Caitong
Securities
Shenwan
Hongyuan
Securities
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (First tranche) (Type I)
25 Huatai G1
242331.SH
2025-1-23
2025-2-5
2026-4-5
18
1.85
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China
Merchants Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Second tranche) (Type I)
25 Huatai G3
242497.SH
2025-2-25
2025-2-27
2027-2-27
30
2.05
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China
Merchants Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
296
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Second tranche) (Type II)
25 Huatai G4
242498.SH
2025-2-25
2025-2-27
2028-2-27
19
2.05
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China
Merchants Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Third tranche) (Type I)
25 Huatai G5
242532.SH
2025-3-4
2025-3-6
2026-6-6
20
2.05
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China
Merchants Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
297
Name of bond
Abbreviation
Code
Issue date
Value date
Expiration
date
Balance
Interest
Rate (%)
Principal
and interest
payment
method
Lead
underwriter
Entrusted
manager
Arrangements
for investors’
appropriateness
(if any)
Trading
mechanism
2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Third tranche) (Type II)
25 Huatai G6
242533.SH
2025-3-4
2025-3-6
2027-9-6
27
2.05
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China
Merchants Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Fourth tranche)
25 Huatai G7
242601.SH
2025-3-13
2025-3-17
2026-4-17
50
2.03
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China
Merchants Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Fifth tranche)
25 Huatai G8
242602.SH
2025-3-20
2025-3-24
2026-8-24
36
2.02
Interest to be paid
annually and one-off
payment of principal
upon expiration with
the last instalment
of interest to be paid
together with the
principal payment
Huatai United Securities,
CICC, Shenwan Hongyuan
Securities, China
Merchants Securities
CICC
For professional
investors
Matching, one-
click-order,
price-enquiry,
bidding and
negotiating
Notes:
1.
The trading market of the above-mentioned corporate bonds was the Shanghai Stock Exchange.
2.
The above-mentioned corporate bonds were not exposed to the risk of delisting.
3.
None of the above-mentioned corporate bonds had put option provisions, and there will be no put dates after April 30, 2025.
4.
As at the date on which this report was approved to publish, the Group had no bonds for ordinary investors.
298
Interest payment for bonds during the Reporting Period is as follows:
Name of bond
Redemption and interest
payment
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(First tranche)
Interest paid on time and in
full in January 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Second tranche) (Type I)
Interest paid on time and in
full in January 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Second tranche) (Type II)
Interest paid on time and in
full in January 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(First tranche)
Principal repaid and interest
paid on time and in full in
January 2024
2022 Perpetual Subordinated Bonds of Huatai
Securities Co., Ltd. Publicly Issued to
Professional Investors (First tranche)
Interest paid on time and in
full in January 2024
2021 Subordinated Bonds of Huatai Securities
Co., Ltd. Publicly Issued to Professional
Investors (First tranche)
Interest paid on time and in
full in January 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Third tranche)
Interest paid on time and in
full in February 2024
2022 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(First tranche)
Interest paid on time and in
full in February 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Fourth tranche)
Interest paid on time and in
full in February 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Fifth tranche) (Type I)
Interest paid on time and in
full in February 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Fifth tranche) (Type II)
Interest paid on time and in
full in February 2024
2023 Short-term Corporate Bonds of Huatai
Securities Co., Ltd. Publicly Issued to
Professional Investors (Sixth tranche)
Principal repaid and interest
paid on time and in full in
March 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Second tranche)
Principal repaid and interest
paid on time and in full in
April 2024
2020 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Qualified Investors
(Second tranche)
Interest paid on time and in
full in April 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Sixth tranche) (Type I)
Interest paid on time and in
full in May 2024
299
Name of bond
Redemption and interest
payment
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Sixth tranche) (Type II)
Interest paid on time and in
full in May 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Third tranche)
Interest paid on time and in
full in May 2024
2020 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Qualified Investors
(Third tranche)
Interest paid on time and in
full in May 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Fourth tranche) (Type I)
Principal repaid and interest
paid on time and in full in
May 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Fourth tranche) (Type II)
Interest paid on time and in
full in May 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Fifth tranche) (Type I)
Principal repaid and interest
paid on time and in full in
June 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Sixth tranche) (Type I)
Principal repaid and interest
paid on time and in full in
June 2024
2023 Short-term Corporate Bonds of Huatai
Securities Co., Ltd. Publicly Issued to
Professional Investors (Fifth tranche)
Principal repaid and interest
paid on time and in full in
July 2024
2022 Perpetual Subordinated Bonds of Huatai
Securities Co., Ltd. Publicly Issued to
Professional Investors (Second tranche)
Interest paid on time and in
full in July 2024
2022 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Second tranche)
Principal repaid and interest
paid on time and in full in
August 2024
2022 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Third tranche)
Principal repaid and interest
paid on time and in full in
August 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Seventh tranche)
Interest paid on time and in
full in August 2024
2022 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Fourth tranche)
Interest paid on time and in
full in September 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Seventh tranche) (Type I)
Principal repaid and interest
paid on time and in full in
September 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Seventh tranche) (Type II)
Interest paid on time and in
full in September 2024
2023 Perpetual Subordinated Bonds of Huatai
Securities Co., Ltd. Publicly Issued to
Professional Investors (First tranche)
Interest paid on time and in
full in September 2024
300
Name of bond
Redemption and interest
payment
2023 Short-term Corporate Bonds of Huatai
Securities Co., Ltd. Publicly Issued to
Professional Investors (Third tranche)
Principal repaid and interest
paid on time and in full in
September 2024
2022 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Fifth tranche)
Interest paid on time and in
full in September 2024
2021 Perpetual Subordinated Bonds of Huatai
Securities Co., Ltd. Publicly Issued to
Professional Investors (First tranche)
Interest paid on time and in
full in September 2024
2023 Short-term Corporate Bonds of Huatai
Securities Co., Ltd. Publicly Issued to
Professional Investors (Fourth tranche)
Principal repaid and interest
paid on time and in full in
September 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Eighth tranche) (Type I)
Interest paid on time and in
full in September 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Ninth tranche) (Type I)
Interest paid on time and in
full in October 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Ninth tranche) (Type II)
Interest paid on time and in
full in October 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Eighth tranche) (Type I)
Principal repaid and interest
paid on time and in full in
October 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Eighth tranche) (Type II)
Interest paid on time and in
full in October 2024
2022 Perpetual Subordinated Bonds of Huatai
Securities Co., Ltd. Publicly Issued to
Professional Investors (Third tranche)
Interest paid on time and in
full in October 2024
2023 Perpetual Subordinated Bonds of Huatai
Securities Co., Ltd. Publicly Issued to
Professional Investors (Second tranche)
Interest paid on time and in
full in October 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Ninth tranche) (Type I)
Principal repaid and interest
paid on time and in full in
October 2024
2021 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Ninth tranche) (Type II)
Interest paid on time and in
full in October 2024
2021 Perpetual Subordinated Bonds of Huatai
Securities Co., Ltd. Publicly Issued to
Professional Investors (Second tranche)
Interest paid on time and in
full in October 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Tenth tranche) (Type I)
Interest paid on time and in
full in November 2024
2023 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Tenth tranche) (Type II)
Interest paid on time and in
full in November 2024
301
Name of bond
Redemption and interest
payment
2020 Subordinated Bonds of Huatai Securities
Co., Ltd. Publicly Issued to Professional
Investors (First tranche)
Interest paid on time and in
full in November 2024
2021 Perpetual Subordinated Bonds of Huatai
Securities Co., Ltd. Publicly Issued to
Professional Investors (Third tranche)
Interest paid on time and in
full in November 2024
2022 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Sixth tranche) (Type I)
Principal repaid and interest
paid on time and in full in
November 2024
2022 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Sixth tranche) (Type II)
Interest paid on time and in
full in November 2024
2023 Corporate Bonds of Huatai Securities
Co., Ltd. Non-publicly Issued to Professional
Investors (First tranche) (Type II)
Interest paid on time and in
full in November 2024
2022 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Seventh tranche) (Type I)
Principal repaid and interest
paid on time and in full in
December 2024
2022 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Eighth tranche) (Type I)
Interest paid on time and in
full in December 2024
2022 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Eighth tranche) (Type II)
Interest paid on time and in
full in December 2024
2023 Corporate Bonds of Huatai Securities
Co., Ltd. Non-publicly Issued to Professional
Investors (Second tranche) (Type II)
Interest paid on time and in
full in December 2024
2022 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors
(Ninth tranche) (Type I)
Principal repaid and interest
paid on time and in full in
December 2024
302
2.
Triggers and execution of the Company
’
s or investor
’
s option clauses or investor
protection clauses
21 Huatai Y1, 21 Huatai Y2, 21 Huatai Y3, 22 Huatai Y1, 22 Huatai Y2, 22
Huatai Y3, 23 Huatai Y1, 23 Huatai Y2 and 24 Huatai Y1 issued by the Company
are subject to the issuer’s renewal option, issuer’s redemption right, when certain
conditions are met and the right of deferring interest payment. As of the disclosure
date of this report, the aforementioned bonds have not triggered the issuer’s
renewal, interest step-up and redemption option when certain conditions are met
as the exercise date of the issuer’s renewal option and redemption right has not yet
reached.
During the Reporting Period, the Company did not execute the right of deferring
interest payment. The current interests for 21 Huatai Y1, 21 Huatai Y2, 21 Huatai
Y3, 22 Huatai Y1, 22 Huatai Y2, 22 Huatai Y3, 23 Huatai Y1 and 23 Huatai
Y2 have been paid on time and in full. During the 12 months prior to the annual
interest payment date of the aforesaid bonds, the Company triggered a mandatory
interest payment event due to dividend distribution to ordinary shareholders and
reduction of registered capital, details of which can be found in the respective
announcements of the Company.
303
3.
Intermediary agencies to provide services for bond issuance and existing business
Name of intermediary agency
Office address
Name of signatory
accountant
Contact
person
Contact
number
Deloitte Touche Tohmatsu Certified
Public Accountants LLP
30/F, 222 Yan An Road East,
Shanghai
Hu Xiaojun,
Han Jian
Hu Xiaojun
021-61418888
KPMG Huazhen LLP
8/F, KPMG Tower, Oriental Plaza,
No. 1 East Chang’an Avenue,
Beijing
Cheng Hailiang,
Zou Jun
Zhang Nan
021-22123075
Other intermediary agencies to provide services for the above bond issuance and
existing business are as below:
Intermediary
agency
Name
Office address
Contact
person
Contact
number
Lead Underwriter
Huatai United Securities Co.,
Ltd.
5/F, Building 1, Huatai Securities Square,
No. 228 Middle Jiangdong Road,
Nanjing
Wang Chengcheng,
Cui Yue
025-83387750
Shenwan Hongyuan
Securities Co., Ltd.
45/F, No. 989 Changle Road, Xuhui
District, Shanghai
Liu Qiuyan, Zheng
Jianrui
021-33388507
021-33388508
China International Capital
Corporation Limited
33/F, Tower 2, China World Office, No.
1 Jianguomenwai Avenue, Chaoyang
District, Beijing
Liu Liu
010-65051166
China Merchants Securities
Co., Ltd.
No.
111 Fuhua 1st Road, Futian
District, Shenzhen, Guangdong Province
Lin Chiheng, Liu
Chen
0755-83081361
China Development Bank
Securities Company
Limited
1-9/F, No. 29 Fuchengmen Wai Avenue,
Xicheng District, Beijing
Bao Hong
010-88300840
China Industrial Securities
Co., Ltd. (
興業證券股份
有限公司
)
32/F, SK Tower, Building 1, 6A
Jianguomenwai Avenue, Chaoyang
District, Beijing
Tao Jian
13581681404
Kaiyuan Securities Co., Ltd.
(
開源證券股份有限公司
)
2/F, Kaiyuan Securities Wealth
Management Center, No. 62 Furong West
Road, Yanta District, Xi’an, Shaanxi
Province
Xu Mengyuan
029-81208821
Caitong Securities Co., Ltd.
(
財通證券股份有限公司
)
West Tower, Caitong Shuangguan Building,
No. 198 Tianmushan Road, Xihu
District, Hangzhou, Zhejiang Province
Xu Zongxuan,
Zhang Zhening,
Wang Wenxu,
Zhang Yifei
0571-87821802
304
Intermediary
agency
Name
Office address
Contact
person
Contact
number
Entrusted
manager
Central China Securities Co.,
Ltd. (
中原證券股份有限
公司
)
10 Business Outer Ring Road, Zhengdong
New District, Zhengzhou
Gao Lingfang
021-50581985
Shenwan Hongyuan
Securities Co., Ltd.
45/F, No. 989 Changle Road, Xuhui
District, Shanghai
Zheng Jianrui
021-33388507
021-33388508
China International Capital
Corporation Limited
China World Office, No. 1 Jianguomenwai
Avenue, Beijing
Liu Liu
010-65051166
Credit rating
agencies
China Lianhe Credit Rating
Co., Ltd.
17/F, Tower 2, No. 2 Jianguomenwai
Avenue, Chaoyang District, Beijing
Jiang Yujia
010-85679696
Shanghai Brilliance Credit
Rating & Investors
Service Co., Ltd.
14/F, Huasheng Mansion, No. 398 Hankou
Road, Shanghai
Gao Fei
021-63501349-
637
Law firms
JC Master Law Offices
9/F, National Water Resources Building,
No. 70 Qingjiang South Road, Nanjing
Yin Tingting
025-84503333
Zhong Lun Law Firm
22-31/F, South Tower of Building 3,
CP Center, No. 20 Jinhe East Road,
Chaoyang District, Beijing
Guo Zhi
025-69511868
AllBright Law Offices
9, 11, 12/F, Shanghai Tower, No. 501
Middle Yincheng Road, Pudong New
Area, Shanghai
Sun Zuan, Bai Xue
021-20511000
King & Wood Mallesons
17-18/F, East Tower, World Financial
Center 1, No. 1 Middle East 3rd Ring
Road, Chaoyang District, Beijing
Yao Lei
021-24126099
Note: Certain bond issuances were underwritten by Shenwan Hongyuan Financing Services Co.,
Ltd. (hereinafter referred to as “Shenwan Hongyuan Financing Services”). Due to changes
in the business scope of Shenwan Hongyuan Securities Co., Ltd. (hereinafter referred to
as “Shenwan Hongyuan Securities”), the original bond underwriting business, except for
convertible corporate bonds, of Shenwan Hongyuan Financing Services was included into
the business scope of Shenwan Hongyuan Securities. For the above changes in business
scope, relevant authorities had issued approval. Therefore, the original rights and obligations
under the agreement entered into by Shenwan Hongyuan Financing Services have succeeded
to Shenwan Hongyuan Securities.
There were no changes in the above intermediary agencies during the Reporting
Period.
4.
Adjustments to the credit ratings
During the Reporting Period, the rating agencies did not make any adjustments to
the ratings.
305
5.
Changes, variations and implementation of guarantees, debt repayment plan and
other debt repayment guarantee measures and their impact during the Reporting
Period
Current status
Implementation
Any change
As of the end of the Reporting Period,
the existing corporate bonds of the
Company are issued without guarantee
and are subject to the debt repayment
plan in accordance with the covenants
in the prospectuses for corporate bonds.
According to the covenants in the
prospectuses for corporate bonds, the
Company has settlement safeguards
in place, including but not limited
to setting up terms of settlement
safeguards undertaking and relief
measures for the issuer, formulating
the Rules for Meeting of Bondholders,
entrusting bond manager, strictly
performing the obligations of
information disclosure and setting up a
special debt repayment account.
During the Reporting
Period, the Company
strictly performed
the covenants in the
prospectuses in relation
to investor protection
mechanism, paid
the interest and/
or principal for the
corporate bonds in
full as scheduled, and
disclosed relevant
information on the
Company in a timely
manner to protect
the legal interest of
investors.
No
(III) Funds raised from corporate bonds
The corporate bonds involved in the use of funds raised during the Reporting Period,
and the utilization of funds raised is as follows:
1.
Basic information
Unit: 100 million Yuan
Currency: RMB
Code of bond
Abbreviation
of bond
Whether
it is a special
type of bond
Specific
type of special
type of bond
Total
amount of
funds raised
Balance of funds
raised as at
the end of the
Reporting Period
Balance of specific
accounts of funds
raised as at
the end of the
Reporting Period
241764.SH
24 Huatai S1
Yes
Short-term corporate bond
20
–
–
241797.SH
24 Huatai S2
Yes
Short-term corporate bond
48
–
–
241798.SH
24 Huatai S3
Yes
Short-term corporate bond
10
–
–
242041.SH
24 Huatai Y1
Yes
Perpetual subordinated bond
26
–
–
242117.SH
24 Huatai S4
Yes
Short-term corporate bond
60
–
–
242135.SH
24 Huatai S6
Yes
Short-term corporate bond
30
–
–
306
2.
Change and adjustment of use of funds raised
There were no changes in the use of funds raised during the Reporting Period.
3.
Utilization of funds raised
(1)
Actual utilization (excluding temporary replenishment of liquidity here)
Unit: 100 million Yuan
Currency: RMB
Code of bond
Abbreviation
of bond
Actual utilized
amount
of funds
raised during
the Reporting
Period
Repayment of
interest-bearing
debts
(excluding
corporate
bonds)
and amount
involved
Repayment
of corporate
bonds
and amount
involved
Replenishment
of liquidity
and amount
involved
Investments
in fixed
asset projects
and amount
involved
Other use
and amount
involved
241764.SH
24 Huatai S1
20
–
–
20
–
–
241797.SH
24 Huatai S2
48
–
–
48
–
–
241798.SH
24 Huatai S3
10
–
–
10
–
–
242041.SH
24 Huatai Y1
26
–
–
26
–
–
242117.SH
24 Huatai S4
60
–
–
60
–
–
242135.SH
24 Huatai S6
30
–
–
30
–
–
(2)
Funds raised were not utilized for specific projects.
(3)
Funds raised were not used for temporary replenishment of liquidity.
4.
Compliance of utilization of funds raised
Code of bond
Abbreviation
of bond
Actual use of funds raised as
at the end of the Reporting
Period (including actual
utilization and temporary
replenishment of liquidity)
Whether the
actual use is consistent
with the agreed use
(including the agreed
use in the prospectus
and the use after
compliance changes)
Whether the utilization
of funds raised and
the management of
the specific accounts of
funds raised were in
compliance during the
Reporting Period
Whether the
utilization of funds
raised complied with
local government debt
management regulations
241764.SH
24 Huatai S1
Replenishment of working capital
Yes
Yes
N/A
241797.SH
24 Huatai S2
Replenishment of working capital
Yes
Yes
N/A
241798.SH
24 Huatai S3
Replenishment of working capital
Yes
Yes
N/A
242041.SH
24 Huatai Y1
Replenishment of working capital
Yes
Yes
N/A
242117.SH
24 Huatai S4
Replenishment of working capital
Yes
Yes
N/A
242135.SH
24 Huatai S6
Replenishment of working capital
Yes
Yes
N/A
The management and utilization of the accounts of funds raised were in
compliance with the regulations and there was no violation of laws and regulations
during the Reporting Period.
307
(IV) Other matters to be disclosed in respect of special types of bonds
1.
The Company being an issuer of renewable corporate bonds
Unit: 100 million Yuan
Currency: RMB
Code of bond
188785.SH
Abbreviation of bond
21 Huatai Y1
Balance of bond
30
Renewal
The issuer’s renewal option has not been exercised
Interest step-up
Not triggered
Interest deferral
Not triggered
Enforcement of
interest payment
The issuer distributed dividends to ordinary
shareholders and reduced registered capital
during the 12 months prior to the interest
payment date, and the issuer has paid the
current interest on the bonds on time and in full
Whether they are still
included in equity or not
and corresponding
accounting treatment
Yes
Other matters
No
Code of bond
188942.SH
Abbreviation of bond
21 Huatai Y2
Balance of bond
50
Renewal
The issuer’s renewal option has not been exercised
Interest step-up
Not triggered
Interest deferral
Not triggered
Enforcement of
interest payment
The issuer distributed dividends to ordinary
shareholders and reduced registered capital during
the 12 months prior to the interest payment date,
and the issuer has paid the current interest on the
bonds on time and in full
Whether they are still
included in equity or not
and corresponding
accounting treatment
Yes
Other matters
No
308
Code of bond
185019.SH
Abbreviation of bond
21 Huatai Y3
Balance of bond
20
Renewal
The issuer’s renewal option has not been exercised
Interest step-up
Not triggered
Interest deferral
Not triggered
Enforcement of
interest payment
The issuer distributed dividends to ordinary
shareholders and reduced registered capital during
the 12 months prior to the interest payment date,
and the issuer has paid the current interest on the
bonds on time and in full
Whether they are still
included in equity or not
and corresponding
accounting treatment
Yes
Other matters
No
Code of bond
185337.SH
Abbreviation of bond
22 Huatai Y1
Balance of bond
27
Renewal
The issuer’s renewal option has not been exercised
Interest step-up
Not triggered
Interest deferral
Not triggered
Enforcement of
interest payment
The issuer distributed dividends to ordinary
shareholders and reduced registered capital during
the 12 months prior to the interest payment date,
and the issuer has paid the current interest on the
bonds on time and in full
Whether they are still
included in equity or not
and corresponding
accounting treatment
Yes
Other matters
No
Code of bond
185388.SH
Abbreviation of bond
22 Huatai Y2
Balance of bond
30
Renewal
The issuer’s renewal option has not been exercised
Interest step-up
Not triggered
Interest deferral
Not triggered
Enforcement of
interest payment
The issuer distributed dividends to ordinary
shareholders and reduced registered capital during
the 12 months prior to the interest payment date,
and the issuer has paid the current interest on
the bonds on time and in full
Whether they are still
included in equity or not
and corresponding
accounting treatment
Yes
Other matters
No
309
Code of bond
137604.SH
Abbreviation of bond
22 Huatai Y3
Balance of bond
35
Renewal
The issuer’s renewal option has not been exercised
Interest step-up
Not triggered
Interest deferral
Not triggered
Enforcement of
interest payment
The issuer distributed dividends to ordinary
shareholders and reduced registered capital during
the 12 months prior to the interest payment date,
and the issuer has paid the current interest on
the bonds on time and in full
Whether they are still
included in equity or not
and corresponding
accounting treatment
Yes
Other matters
No
Code of bond
115931.SH
Abbreviation of bond
23 Huatai Y1
Balance of bond
25
Renewal
The issuer’s renewal option has not been exercised
Interest step-up
Not triggered
Interest deferral
Not triggered
Enforcement of
interest payment
The issuer distributed dividends to ordinary
shareholders and reduced registered capital during
the 12 months prior to the interest payment date,
and the issuer has paid the current interest on
the bonds on time and in full
Whether they are still
included in equity or not
and corresponding
accounting treatment
Yes
Other matters
No
Code of bond
240109.SH
Abbreviation of bond
23 Huatai Y2
Balance of bond
40
Renewal
The issuer’s renewal option has not been exercised
Interest step-up
Not triggered
Interest deferral
Not triggered
Enforcement of
interest payment
The issuer distributed dividends to ordinary
shareholders and reduced registered capital during
the 12 months prior to the interest payment date,
and the issuer has paid the current interest on
the bonds on time and in full
Whether they are still
included in equity or not
and corresponding
accounting treatment
Yes
Other matters
No
310
Code of bond
242041.SH
Abbreviation of bond
24 Huatai Y1
Balance of bond
26
Renewal
The issuer’s renewal option has not been exercised
Interest step-up
Not triggered
Interest deferral
Not triggered
Enforcement of
interest payment
The issuer distributed dividends to ordinary
shareholders and reduced registered capital during
the 12 months prior to the interest payment date,
and the issuer has paid the current interest on
the bonds on time and in full
Whether they are still
included in equity or not
and corresponding
accounting treatment
Yes
Other matters
No
2.
Matters on other special types of corporate bonds
No.
(V)
Major events in relation to corporate bonds during the Reporting Period
1.
Balance and breakdown of non-operating transaction appropriation and capital
placements
As at the beginning of the Reporting Period, receivable balance of the transaction
appropriation to other parties that were not directly attributable to operation and
the capital placements (the “non-operating transaction appropriation and capital
placements”) of the Group was RMB160,500;
During the Reporting Period, there was no non-compliance of non-operating
transaction appropriation and capital placements by the Group with relevant
agreements or commitments as set out in the prospectuses.
As at the end of the Reporting Period, total outstanding non-operating transaction
appropriation and capital placements of the Group amounted to RMB251,100,
and its percentage to the net assets on a consolidated basis was 0%, which did not
exceed 10% of the net assets on a consolidated basis.
311
2.
Liabilities
(1)
Interest-bearing debts and changes therein
1.1
Debt structure of the Company
As at the beginning and the end of the Reporting Period, the
interest-bearing debt balance of the Company were RMB303.663
billion and RMB250.918 billion, respectively. The interest-bearing debt
balance as at the end of the Reporting Period decreased by 17.37% as
compared to the beginning of the Reporting Period.
Unit: 100 million Yuan
Currency: RMB
Type of
interest-bearing debts
Time to maturity
Total
amount
Proportion
of amount to
Overdue
Within 1 year
(inclusive)
Over 1 year
(exclusive)
interest-bearing
debts (%)
Corporate credit bonds
–
483.23
581.11
1,064.34
42.42
Bank loans
–
–
–
–
–
Loans from non-bank
financial institutions
–
–
–
–
–
Other interest-bearing
debts
–
1,433.93
10.91
1,444.84
57.58
Total
–
1,917.16
592.02
2,509.18
–
Notes:
1.
Other interest-bearing debts include placement from other financial
institutions, financial assets sold under repurchase agreements and etc.
2.
The above interest-bearing debts exclude perpetual subordinated bonds
that were included in other equity instruments with closing principal
amount of RMB28.3 billion and opening principal amount of RMB25.7
billion.
Among the corporate credit bonds of the Company in duration as at
the end of the Reporting Period, the balance of corporate bonds was
RMB106.434 billion, and a total of RMB36.254 billion of corporate
credit bonds will mature or can be sold back between April and
December 2025.
312
1.2
Interest-bearing debt structure of the Group
As at the beginning and the end of the Reporting Period, the
interest-bearing debt balance of the Group were RMB385.987 billion
and RMB303.827 billion, respectively. The interest-bearing debt
balance as at the end of the Reporting Period decreased by 21.29% as
compared to the beginning of the Reporting Period.
Unit: 100 million Yuan
Currency: RMB
Time to maturity
Proportion
of amount to
Type of
interest-bearing debts
Overdue
Within 1 year
(inclusive)
Over 1 year
(exclusive)
Total
amount
interest-bearing
debts (%)
Corporate credit bonds
–
606.16
734.12
1,340.28
44.11
Bank loans
–
33.63
–
33.63
1.11
Loans from non-bank
financial institutions
–
–
–
–
–
Other interest-bearing
debts
–
1,641.69
22.67
1,664.36
54.78
Total
–
2,281.48
756.79
3,038.27
–
Notes:
1.
Other interest-bearing debts include placement from other financial
institutions, financial assets sold under repurchase agreements and etc.
2.
The above interest-bearing debts exclude perpetual subordinated bonds
that were included in other equity instruments with closing principal
amount of RMB28.3 billion and opening principal amount of RMB25.7
billion.
Among the corporate credit bonds of the Group in duration as at
the end of the Reporting Period, the balance of corporate bonds was
RMB106.452 billion, and a total of RMB41.302 billion of corporate
credit bonds will mature or can be sold back between April and
December 2025.
1.3
Offshore bonds
As of the end of the Reporting Period, the balance of offshore bonds
issued by the Group was RMB27.576 billion, and a total of RMB5.047
billion of offshore bonds will mature or can be sold back between April
and December 2025.
313
(2)
As at the end of the Reporting Period, the Group had no overdue
interest-bearing debts or corporate credit bonds with an overdue amount of
more than RMB10 million.
(3)
Major liabilities and reasons for their changes
For major liabilities and reasons for their changes, please refer to “General
description of consolidated statement of financial position” under “Analysis
of key items of consolidated statement of financial position” of “Major
Operations during the Reporting Period” in “Management Discussion and
Analysis and Report of the Board” in this report.
(4)
Prioritized repayments of liabilities against any third person
As of the end of the Reporting Period, there were no prioritized repayments
of liabilities by the Group against any third person.
314
(VI) During the Reporting Period, the Company did not have any non-financial
corporate debt financing instruments in the inter-bank bond market
(VII) During the Reporting Period, the Company did not record a loss in the
consolidated statements exceeding 10% of the net assets at the end of the previous
year
(VIII)
Interest-bearing debt (other than bonds) overdue at the end of the Reporting
Period
The Company enjoyed a good reputation, and repaid matured debts and paid interests
on time without any overdue debts during the Reporting Period.
For details of the issuance and payment of interest for corporate bonds and debt
financing instruments, please refer to “The Issuance and Listing of Securities” under
“Changes in Shares and Shareholders” in this report and “Basic information on
corporate bonds” under “Corporate Bonds” in this section.
(IX) The impacts of non-compliance with laws and regulations, the Articles of
Association, the management measures for information disclosure and violation of
relevant covenants or undertakings in the prospectuses for bonds on the interests
of bond investors during the Reporting Period
During the Reporting Period, the Company complied with laws and regulations, the
Articles of Association and the management measures for information disclosure,
strictly performed its obligations of information disclosure and paid the interest
for the bonds on time to protect the legitimate interest of investors. In addition, the
Company strictly performed the relevant covenants or undertakings in the prospectus
for corporate bonds, and the usage of the funds raised was in line with the covenants
in the prospectus. During the Reporting Period, the Company did not default on the
redemption and interest payment of issued bonds, and operated stably with satisfactory
earnings and there is no risk of the Company failing to make payments on time in the
future.
315
(X)
Accounting data and financial indicators of the Company for the past two years up
to the end of the Reporting Period
Unit: Thousand Yuan
Currency: RMB
Primary indicators
2024
2023
Year-on-year
change (%)
Reason for
the change
Net profit after extraordinary profit
and loss attributable to
shareholders of the listed
company
9,033,781
12,886,560
-29.90
Year-on-year
increase in
extraordinary
profit and loss
due to disposal of
subsidiaries
Current ratio
1.46
1.38
5.80
–
Quick ratio
1.46
1.38
5.80
–
Gearing ratio (%)
69.53
76.05
Decreased by 6.52
percentage points
–
EBITDA to total debt ratio (%)
8.00
6.67
Increased by 1.33
percentage points
–
Times interest earned
2.53
2.10
20.48
–
Times cash-interest earned
3.52
-1.11
N/A
–
Times interest earned of EBITDA
2.71
2.25
20.44
–
Loan repayment ratio (%)
100
100
0.00
–
Interest payment ratio (%)
100
100
0.00
–
Note:
Customer’s funds are not included in the above-mentioned indicators.
II.
THE COMPANY HAD NO CONVERTIBLE CORPORATE BONDS DURING THE
REPORTING PERIOD
316
III. STRUCTURED NOTES
(I)
Matters on structured notes
In 2023, the Company issued a total of 3,563 structured notes through the China Securities
Institutional Trading & Quotation System and OTC market, with a total issuance amount of
RMB21.189 billion. As of December 31, 2023, 1,064 structured notes continued to exist with
a total scale of RMB13.562 billion.
In 2024, the Company issued a total of 2,891 structured notes through the China Securities
Institutional Trading & Quotation System and OTC market, with a total issuance amount of
RMB32.061 billion. A total of 3,583 structured notes were paid, with a total payment amount
of RMB25.382 billion. During the Reporting Period, all of the due structured notes of the
Company were paid as agreed. As of December 31, 2024, 372 structured notes continued to
exist with a total scale of RMB20.241 billion.
(II) Major events
During the Reporting Period, the Company strictly implemented the requirements under the
Guidelines on Information Disclosure of Structured Notes of Securities Companies (
《證券公
司收益憑證信息披露指引》
), and details of disclosures of relevant major events can be found
in “Appendix IV. Information Disclosures Index”.
(III) Risks
1.
Company credit risks
The Company has a robust organizational structure, a sound decision-making
authorization system and a rigorous internal control system. During the Reporting
Period, the Company operated in compliance with regulations, enjoyed a good
reputation as well as strong capital strength, profitability and debt repayment ability.
2.
Liquidity risks
The Company has incorporated structured notes into its overall debt financing
management, made uniform arrangements for the financing limit and maturity structure,
and established a unified limit authorization and management mechanism at the
corporate level to conduct daily monitoring on liquidity gaps to ensure the Company’s
liquidity safety. During the Reporting Period, the liquidity of the Company was in good
condition and due structured notes were paid on time without any liquidity risk.
317
3.
Other risks
The Company has issued floating structured notes, and part of the embedded derivatives
has been integrated into the Company’s derivatives compliance and risk control system
for unified management in all aspects of derivatives design, hedging transactions, risk
exposure and limit management.
Details of risks of the Company can be found in “Potential risks” under “Discussion
and Analysis of the Company’s Future Development” of “Management Discussion and
Analysis and Report of the Board”.
318
INDEX OF DOCUMENTS FOR INSPECTION
Index of Documents
for Inspection
Financial statements carrying the signature and seal of
the Company’s legal representative, person in charge of
accounting and head of accounting department
Audit report carrying the seal of the accounting firm and the
signature and seal of the certified public accountant
Original copies of all documents and announcements of the
Company publicly disclosed during the Reporting Period
Articles of Association
319
INFORMATION DISCLOSURE OF SECURITIES COMPANIES
I.
MAJOR ADMINISTRATIVE APPROVALS OF THE COMPANY
1.
Approval for the Registration of Public Issuance of Corporate Bonds to Professional
Investors by Huatai Securities Co., Ltd. (Zheng Jian Xu Ke [2024] No. 416) dated
March 11, 2024.
2.
Approval for the Registration of Public Issuance of Subordinated Corporate Bonds to
Professional Investors by Huatai Securities Co., Ltd. (Zheng Jian Xu Ke [2024] No.
1109) dated July 31, 2024.
320
APPENDIX
I.
MAIN BUSINESS QUALIFICATIONS
The Company was entitled to become the members of the Shanghai Stock Exchange, the
Shenzhen Stock Exchange and Beijing Stock Exchange, and Securities Association of
China, to engage in the clearing of warrants of China Securities Depository and Clearing
Corporation Limited and to participate in the clearing of China Securities Depository and
Clearing Corporation Limited. Besides, the Company also has the following main business
qualifications:
No.
Type of License
Approval Department
Years
1
National interbank market access qualification
PBOC
January 2000
2
Qualification for online entrusted securities
brokerage business
CSRC
May 2001
3
Qualification for distributing open-end securities
investment funds
CSRC
February 2003
4
Qualification for entrusted investment
management business
CSRC
March 2003
5
Value-added telecommunications business license
Jiangsu Communications
Administration
July 2004
6
Pilot securities firm for relevant innovative
activities
Securities Association
of China
March 2005
7
Qualification for underwriting short-term
financing bills
PBOC
August 2005
8
License for foreign exchange operation in the
securities business
State Administration of
Foreign Exchange
November 2006
9
Foreign exchange registration certificate for
overseas investment
Jiangsu Provincial
Bureau of SAFE
December 2006
10
Qualification for agency business of stock transfer
Securities Association
of China
June 2007
11
Qualification of tier-1 dealer on the integrated
e-platform for fixed income securities
Shanghai Stock Exchange
August 2007
12
Qualified domestic institutional investor (QDII)
qualification for overseas securities investment
management business
CSRC
December 2007
13
Qualification to provide intermediary introduction
business for Great Wall Weiye Futures Co., Ltd.
CSRC
April 2008
14
Qualified investor qualification in block
trade system
Shanghai Stock Exchange
June 2008
15
Qualification to incorporate wholly-owned
specialized subsidiaries to engage in direct
investment business
CSRC
July 2008
16
Obtain a stock index futures trading code and
a hedging limit
China Financial Futures
Exchange
June 2010
17
Pilot program of securities margin trading
CSRC
June 2010
18
Qualification of the dealer for credit risk
mitigation tools and creator for credit risk
mitigation certificates
National Association
of Financial Market
Institutional Investors
December 2010
321
No.
Type of License
Approval Department
Years
19
Change the securities brokerage business (the
business in Jiangsu, Shanghai, Zhejiang, Anhui,
Shandong, Heilongjiang, Jilin, Liaoning,
Beijing, Tianjin, Hebei, Henan, Shaanxi, Shanxi,
Ningxia, Inner Mongolia, Gansu, Xinjiang,
Qinghai only) within the original business
scope to securities brokerage business, change
the securities underwriting and sponsorship
business (the relevant business on the Shanghai
Stock Exchange only) to securities underwriting
business (the underwriting of government bonds,
debt financing instruments of non-financial
enterprises only), and reduce the financial
advisory business relating to securities trading
and securities investment activities
CSRC
August 2011
20
Provide trading seats to insurance institutional
investors
China Insurance
Regulatory Commission
January 2012
21
Pilot program of bonds collateralized quotation
repurchase business
CSRC
January 2012
22
Bonds collateralized quotation repurchase business
Shanghai Stock Exchange
February 2012
23
CSI 300ETF liquidity service provider
Shanghai Stock Exchange
May 2012
24
Innovative brokerage deposit business
CSRC
June 2012
25
Participate in interest rate swap trading by using
the Company’s proprietary funds
Jiangsu Securities
Regulatory Bureau
August 2012
26
Pilot program of margin refinancing
China Securities Finance
Corporation Limited
August 2012
27
Pilot program of agreed repurchase type
securities trading
CSRC
September 2012
28
Lead underwriting business for non-financial
enterprises debt financing instruments in the
interbank market
National Association
of Financial Market
Institutional Investors
November 2012
29
Qualification and transaction code for conducting
arbitrage and speculative trading of CSI 300
index-futures
China Financial Futures
Exchange
December 2012
30
Agency sale of financial products
Jiangsu Securities
Regulatory Bureau
January 2013
31
Qualification for the agreed repurchase type
securities trading business
Shenzhen Stock Exchange
January 2013
32
Pilot comprehensive custody business for private
funds, which can provide comprehensive
custody services, such as asset custody,
settlement, computation of net value, investment
control, custody report and etc., for private
securities investment funds (limited partnership)
Institutional Supervision
Department of the CSRC
February 2013
33
Qualification of margin refinancing business
China Securities Finance
Corporation Limited
February 2013
34
Insurance fund investment manager
China Insurance
Regulatory Commission
March 2013
322
No.
Type of License
Approval Department
Years
35
Operate recommendation and brokerage business
on the National Equities Exchange and
Quotations as the lead securities firm
National Equities Exchange
and Quotations Company
Limited
March 2013
36
Qualification to submit filing materials for
witnessing the opening of customers’ securities
accounts
China Securities
Depository and Clearing
Corporation Limited
April 2013
37
Qualification of financial bonds (including policy
finance bonds) underwriting business
Jiangsu Securities
Regulatory Bureau
June 2013
38
Conducting stock pledge-style repo transaction
business for securities listed on the Shanghai
Stock Exchange or Shenzhen Stock Exchange
Shanghai Stock Exchange
and Shenzhen
Stock Exchange
June 2013
39
Treasury bonds futures business
Jiangsu Securities
Regulatory Bureau
September 2013
40
Qualification to conduct treasury bonds futures
arbitrage and hedging businesses
CSRC and China Financial
Futures Exchange
September 2013
41
Qualification to conduct asset management share
transfer business
Shenzhen Stock Exchange
September 2013
42
Qualification to carry out equity return swaps
business
Securities Association
of China
September 2013
43
Qualification to conduct pre-issuance of treasury
bonds
Shanghai Stock Exchange
October 2013
44
Pass the on-site inspection on stock options
Shanghai Stock Exchange
June 2014
45
Operate market-making business on the National
Equities Exchange and Quotations as a market
maker, namely market-making qualification on
the National Equities Exchange and Quotations
National Equities Exchange
and Quotations Company
Limited
July 2014
46
Trial market maker on the interbank market
National Inter-Bank
Funding Center
July 2014
47
Pilot program of financing by exercising the share
incentive scheme business
Shenzhen Stock Exchange
August 2014
48
Qualification of capital payment services for
clients that could provide various payment
services for investors such as deposits
collection, mobile recharging, online store
consumption, sales return, water fee and credit
card payment
Securities Fund
Supervision Department
of the CSRC
August 2014
49
Qualification of custodian for securities investment
funds
CSRC
September 2014
50
Qualification for pilot operations of Internet-based
securities business
Securities Association of
China
September 2014
51
OTC qualification
Securities Association of
China
September 2014
52
Qualification to conduct Southbound trading under
A Shares trading seats
Shanghai Stock Exchange
October 2014
53
Pilot program on the OTC market
Securities Association of
China
October 2014
323
No.
Type of License
Approval Department
Years
54
Pilot program of restricted securities lending under
share incentive schemes of listed companies
Shenzhen Stock Exchange
December 2014
55
Qualification of practicing on an authentic
basis and brokerage business for stock option
businesses
Shenzhen Stock Exchange
December 2014
56
Qualification for stock option trading participant,
stock option brokerage and proprietary
business trading
Shanghai Stock Exchange
January 2015
57
Qualification for stock options market making
business
CSRC
January 2015
58
Main market maker of SSE 50ETF option
contracts
Shanghai Stock Exchange
January 2015
59
Qualification of standard interest rate swap and
forward centralized settlement of standard bonds
Shanghai Clearing House
April 2015
60
Qualification of participating in the net settlement
of bond trade
Shanghai Clearing House
April 2015
61
Provide private equity with valuation and
calculation service, share registration service,
sales backstage service support and other
outsourcing services, as well as other value-
added services derived from the above services
Asset Management
Association of China
April 2015
62
Qualification of pilot innovative business for one-
way video verification of investors’ identities
China Securities
Depository and Clearing
Corporation Limited
June 2015
63
Permission to conduct Southbound trading under
Shenzhen-Hong Kong stock connect
Shenzhen Stock Exchange
November 2016
64
Agency qualification for subscription, purchasing
and redeeming of gold ETF in spot
Shanghai Gold Exchange
June 2017
65
Pilot program of cross-border business
CSRC
December 2017
66
Qualification of tier-1 dealer on OTC options
CSRC
July 2018
67
Carry out credit derivatives business
CSRC
December 2018
68
Qualification of main market maker of funds
listed on the SSE
Shanghai Stock Exchange
January 2019
69
Conducting credit protection contract business
Shanghai Stock Exchange
February 2019
70
Conducting market making business of treasury
bond futures
CSRC
May 2019
71
Pilot Program of Foreign Exchange Settlement and
Sales Business
State Administration of
Foreign Exchange
August 2019
72
Conducting credit protection certificate business
Shanghai Stock Exchange
December 2019
73
Conducting market making business of commodity
options
CSRC
December 2019
74
Conducting market making business of stock index
options
CSRC
December 2019
75
Conducting pilot fund investment advisory
business
CSRC
February 2020
324
No.
Type of License
Approval Department
Years
76
Conducting agency for trading of foreign exchange
Business
State Administration of
Foreign Exchange
July 2020
77
Conducting market making business of commodity
futures
CSRC
January 2021
78
Conducting pilot business of account management
function optimization
CSRC
November 2021
79
Engaging in “Southbound Trading” business
PBOC
December 2021
80
Qualification for tier-1 dealer on commodity swap
business
Shanghai Futures
Exchange
July 2022
81
Qualification for market making and trading
business of listed securities
CSRC
September 2022
82
Proprietary participation in carbon emissions
trading
CSRC
January 2023
In 2024, the individual business qualifications obtained by the Company mainly include
1
Participation in Securities, Funds and Insurance
Companies Swap Facility (SFISF) business
CSRC
October 2024
2
Pilot participation in the “Cross-boundary Wealth
Management Connect” business
The PBOC Guangdong
Branch, Shenzhen
Branch, the CSRC
Guangdong Regulatory
Bureau, Shenzhen
Regulatory Bureau
November 2024
325
II.
LIST OF BRANCH OFFICES AND SECURITIES BRANCHES
1.
Establishment of Securities Branch Offices of the Company
As of the end of the Reporting Period, the basic information of the establishment of
securities branch offices of the Company is as follows:
Unit: Ten Thousand Yuan
Currency: RMB
No
Name
Address
Date of
establishment
Registered
capital
(or working
capital)
Zip code
Person
in charge
Contact number
Business scope
1
Anhui Branch
6/F & 7/F, Block
A, Feili Shidai
Square Commercial
Complex, No. 310
Suixi Road, Luyang
District, Hefei
August 25,
2014
10,000
230011
Li Jing
0551-64297088
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending; agency sale of securities
investment funds; agency sale of
financial products.
2
Beijing Branch
Room 1501, 15/F,
Block 28,
Fengsheng Hutong,
Xicheng District,
Beijing
May 28,
2010
500
100032
Wang Yujie
010-63211388
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending; agency sale of securities
investment funds; agency sale of
financial products.
3
Changzhou
Branch
No. 9, North
Heping Road,
Changzhou
April 16,
2014
2,000
213003
Yuan Hongbin
0519-81006688
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending; agency sale of securities
investment funds; agency sale of
financial products.
326
No
Name
Address
Date of
establishment
Registered
capital
(or working
capital)
Zip code
Person
in charge
Contact number
Business scope
4
Fujian Branch
Units 10D, 10C
Block A, Tefang
Portman Wealth
Center, No. 81
Zhanhong Road,
Siming District,
Xiamen
September 18,
2014
2,000
361004
Ren Qiaojian
0592-5918981
Securities brokerage; securities
investment consulting; agency
sale of securities investment
funds; margin financing and
securities lending business;
agency sale of financial products;
securities underwriting (limited
to ancillary works such as project
contracting, project information
transmission and recommendation
and customer relationship
maintenance of underwriting of
government bonds, debt financing
instruments of non-financial
enterprises and financial bonds
(including policy-bank bonds)
only).
5
Guangdong
Branch
Units 02 & 03, 36/F,
No. 10 Huaxia
Road, Tianhe
District, Guangzhou
May 19,
2012
500
510620
Liu Yong
020-88830128
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending; agency sale of securities
investment funds; agency sale of
financial products.
6
Henan Branch
No. 16, Nongye
Road East, Jinshui
District, Zhengzhou
April 16,
2014
2,000
450008
Fan Hao
0371-60958336
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
327
No
Name
Address
Date of
establishment
Registered
capital
(or working
capital)
Zip code
Person
in charge
Contact number
Business scope
7
Heilongjiang
Branch
3/F, Block
B, Aocheng
International,
No. 239 Xuanhua
Street, Nangang
District, Harbin,
Heilongjiang
Province
May 28,
2010
500
150001
Wang Haibin
0451-51994000
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products; management
of local business departments.
8
Hubei Branch
24/F, Unit 6,
Building 6-7,
Wuhan 1818 Center
(Phase 2), No. 109
Zhongbei Road,
Shuiguohu Street,
Wuchang District,
Wuhan
March 19,
2012
500
430070
Min Jie
027-87739318
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
ancillary works such as project
contracting, project information
transmission and recommendation
and customer relationship
maintenance of underwriting
of government bonds, debt
financing instruments of non-
financial enterprises and financial
bonds (including policy-bank
bonds) only); margin financing
and securities lending business;
agency sale of securities
investment funds; agency sale of
financial products; management
of securities branches at Hubei of
Huatai Securities Co., Ltd.
9
Hunan Branch
Rooms 1301-1305
& 1313-1316,
Buildings 4 & 5,
Huayuanhua Center,
No 36, Section 2,
Middle Xiangjiang
Road, Tianxin
District, Changsha,
Hunan Province
May 27,
2014
500
410015
Deng Jing
0731-85120568
Securities brokerage; securities
investment consulting; agency
sale of securities investment
funds; margin financing and
securities lending business;
agency sale of financial
products; securities underwriting
and sponsoring (limited to
ancillary works such as project
contracting, project information
transmission and recommendation
and customer relationship
maintenance).
328
No
Name
Address
Date of
establishment
Registered
capital
(or working
capital)
Zip code
Person
in charge
Contact number
Business scope
10
Jiangxi Branch
Shop -3#, No.
101, 1/F, Podium
Building, and Nos.
1603, 1604, 1605,
1606, 1607, 16/F,
Office Building,
Publishing Center,
No. 95 Lijing Road,
Honggutan District,
Nanchang City,
Jiangxi Province
November 3,
2014
500
330002
Zheng
Chengbin
0791-88288255
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; intermediary
introduction business for the
futures companies; agency sale of
financial products; management
of securities branches at Jiangxi.
11
Liaoning Branch
Units 1, 2, 3 and
4, 15/F, Block B,
Enterprise Square,
No. 125 Qingnian
Street, Shenhe
District, Shenyang
City, Liaoning
Province
June 3,
2011
500
110004
Chen Min
024-31881777
Securities brokerage; securities
investment consulting; margin
financing and securities lending
business; agency sale of securities
investment funds; intermediary
introduction business for the
futures companies; agency
sale of financial products;
securities underwriting (limited
to underwriting of government
bonds, debt financing instruments
of non-financial enterprises and
financial bonds (including policy-
bank bonds) only).
12
Nanjing Branch
No. 90 Zhongshan
Road East, Qinhuai
District, Nanjing,
Jiangsu Province
April 9,
2010
2,000
210002
Wang
Yansheng
025-84791077
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
329
No
Name
Address
Date of
establishment
Registered
capital
(or working
capital)
Zip code
Person
in charge
Contact number
Business scope
13
Nantong Branch
Fangtian Building,
No. 6 Yaogang
Road, Nantong,
Jiangsu Province
May 28,
2010
500
226000
Ruan Jing
0513-85529888
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
14
Shandong Branch
Rooms 2101, 2102,
2103, 2104, Block
A, Yinfeng Fortune
Plaza, No. 1 West
Long’ao Road,
Longdong Street,
Lixia District, Jinan
City, Shandong
Province
April 16,
2014
2,000
250061
Xie Feng
0531-55686555
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
15
Shanghai Branch
Room 2201, No.
18 Dongfang Road,
China (Shanghai)
Pilot Free Trade
Zone
May 28,
2010
500
200120
Lu Chunguang
021-28972296
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
16
Shenzhen Branch
8A, Fund Mansion,
No. 5999, Yitian
Road, Lianhua
Street, Futian
District, Shenzhen
March 19,
2012
500
518048
Fei Yangwen
0755-23895899
Securities brokerage; securities
underwriting (limited to
contracting); securities
investment consulting; margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
330
No
Name
Address
Date of
establishment
Registered
capital
(or working
capital)
Zip code
Person
in charge
Contact number
Business scope
17
Sichuan Branch
Rooms 2503, 2504,
2505, 2506, 2507
and 2508, 25/F,
Unit 1, Building
1, China Overseas
Chinese Financial
Center, No. 33,
Jiaozi Avenue,
Hitech Zone,
Chengdu, China
(Sichuan) Pilot Free
Trade Zone
May 19,
2012
500
610091
Li Hui
028-81255398
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
18
Suzhou Branch
4/F & 5/F, No.
102 Xinshi Road,
Canglang District,
Suzhou
May 28,
2010
500
215000
Liu Xiaobing
0512-67579666
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
19
Taizhou Branch
No. 22, Yingchun
Road West, Hailing
District, Taizhou,
Jiangsu Province
August 4,
2014
2,000
225300
Liang Qiuming 0523-86234237
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
331
No
Name
Address
Date of
establishment
Registered
capital
(or working
capital)
Zip code
Person
in charge
Contact number
Business scope
20
Tianjin Branch
Block C-I, 5/F,
North Finance
Building, No. 5
Youyi Avenue,
Hexi District,
Tianjin
May 28,
2010
500
300211
Zhang Feng
022-59657718
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
21
Wuxi Branch
No. 325, Jiefang
Road West, Wuxi,
Jiangsu Province
June 11,
2014
2,000
214000
Geng Kun
0510-82723020
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
22
Northwest Branch
Room 21401,
Unit 2, Building
2, CROSS
Wanxianghui, No.
21 Gaoxin Six
Road, Zhangba
Sub-district Office,
High-Tech Zone,
Xi’an, Shaanxi
Province
August 5,
2019
–
710000
Liu Ming
029-88811161
Securities brokerage; securities
investment consulting; agency
sale of securities investment
funds; margin financing and
securities lending; agency
sale of financial products;
securities underwriting (limited
to underwriting of government
bonds, debt financing instruments
of non-financial enterprises and
financial bonds (including policy
financial bonds) only).
332
No
Name
Address
Date of
establishment
Registered
capital
(or working
capital)
Zip code
Person
in charge
Contact number
Business scope
23
Xuzhou Branch
1-1601, Building 6
(previously 9), Area
3, Financial Service
Center, Huaihai
Economic Zone,
No. 1 Qinjun Road,
Yunlong District,
Xuzhou City
April 16,
2014
2,000
221001
Li Yijun
0516-85695618
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
24
Yancheng Branch
Room 201, Building
6, Financial City,
No. 5 Century
Avenue, Yancheng
City
March 24,
2014
2,000
224002
Dong Kaisong
0515-88216888
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
25
Yangzhou Branch
2015, 2016, 2017,
2113, 2114, 2115,
2116, 2117, 2118,
2201, 2202, 2219,
2220, 2221, 2222,
2223, 2224, Block
6, Changjian
Square, No.276
Jinghuacheng Road,
Hanjiang District,
Yangzhou City
August 4,
2014
2,000
225001
Ji Chunbo
0514-82196688
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
333
No
Name
Address
Date of
establishment
Registered
capital
(or working
capital)
Zip code
Person
in charge
Contact number
Business scope
26
Yunnan Branch
2505B-2508, 25/
F, China Merchants
Bank Tower, No.
1 Chongren Street,
Wuhua District,
Kunming, Yunnan
Province
February 25,
2014
500
650021
He Sijiang
0871-65951990
Securities brokerage; securities
investment consulting; agency
sale of securities investment
funds; margin financing and
securities lending business;
agency sale of financial products;
securities underwriting (limited
to underwriting of government
bonds, debt financing instruments
of non-financial enterprises and
financial bonds (including policy-
bank bonds) only).
27
Zhejiang Branch
Rooms 2801-2808,
Xingguangcheng,
No.1766 Binsheng
Road, Changhe
Street, Binjiang
District, Hangzhou,
Zhejiang Province
March 25,
2013
500
310052
Li Xiang
0571-86698700
Securities brokerage; securities
investment consulting; agency
sale of securities investment
funds; margin financing and
securities lending business;
agency sale of financial products;
securities underwriting (limited
to underwriting of government
bonds, debt financing instruments
of non-financial enterprises and
financial bonds (including policy-
bank bonds) only).
334
2.
Number and Distribution of Securities Branches of the Company
As of the end of the Reporting Period, the number and distribution of securities
branches of the Company are as follows:
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
1
Anhui
Hefei
Securities Branch in
Xiyou Road, Hefei
1/F, Building 5, Commercial
Building of Yiyuan Shijia, No.
888 Xiyou Road, Bijiashan
Street, Shushan District, Hefei
City, Anhui Province
230022
Hu Longqi
0551-65175008
2
Securities Branch in
Chuangxin Road, Hefei
4F, Block C, Chuangxin
Department, No. 2760,
Chuangxin Road, High-tech
District, Hefei City, Anhui
Province
230088
Fan Huijuan
0551-62686969
3
Ma’anshan
Securities Branch in Hudong
Middle Road, Ma’anshan
No. 1046, Hudong Middle
Road, Huashan District,
Ma’anshan City
243000
Gao Guosheng
0555-2963619
4
Chuzhou
Securities Branch in Fengle
Avenue, Chuzhou
Nos. 1112 & 1114,
Commercial Block S3,
No. 1118 Fengle Avenue
(Yutianxia South Garden),
Chuzhou City, Anhui Province
239001
Lu Rudong
0550-3019976
5
Tongling
Securities Branch in Huaihe
Avenue, Tongling
Shop 142, 1/F, No. 203A, 2/F,
Huijin Building, Tongling
Trade Building, Middle
Section of Huaihe Avenue,
Tongguan District, Tongling
City, Anhui Province
244000
Hu Jing
0562-2801988
335
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
6
Beijing
Beijing
Securities Branch in
Dongsanhuan North Road,
Beijing
Units 101 (inside 102),
201, 1-2/F, Building 27,
Dongsanhuan North Road,
Chaoyang District, Beijing
100062
Tang Shengrui
010-59725337
7
Securities Branch in Suzhou
Street, Beijing
Rooms 901, 902, 903, 911,
912, 9/F, Weiya Building, No.
29 Suzhou Street, Haidian
District, Beijing
100080
Feng Chao
010-62523799
8
Securities Branch in
International Finance and
Economy Center,
Xisanhuan, Beijing
103, 1/F and 403, 404, 405,
4/F, No. 87 Xisanhuan North
Road, Haidian District, Beijing
100048
Liu Zhifeng
010-68733735
9
Securities Branch in
Yonghe Temple, Beijing
Room 501, 5/F, Block F,
Room 116, 1/F, & Room
216, 2/F, Block D, No. 28
Andingmen East Street,
Dongcheng District, Beijing
100007
Zhao Youqiang
010-84273989
10
Securities Branch in Yuetan
South Street, Beijing
3/F Wanfeng Yihe Business
Club, No. 12A Yuetan South
Street, Xicheng District,
Beijing
100045
Zhang Zhiqun
010-68058688
11
Securities Branch in Xueyuan
South Road, Beijing
Room 107, 1/F, Room 309,
3/F, No. 62 Xueyuan South
Road, Haidian District, Beijing
100081
Li Minghuan
010-82263313
12
Securities Branch in Tianchen
East Road, Beijing
No. D1003, 10/F (inside 101),
1/F, Building 1, No. 1 Yard,
Tianchen East Road, Chaoyang
District, Beijing
100081
Chen Haojun
18936880087
13
Securities Branch in Jianguo
Road, Beijing
Unit 02, inside 501, 5/F, No.
77, Jianguo Road, Chaoyang
District, Beijing
100081
Zhao Zhe
010-65055695
14
Inner Mongolia
Baotou
Securities Branch in Huanghe
Street, Baotou
No. 87, Huanghe Street, Xitu
Hightech Zone, Baotou City,
Inner Mongolia Autonomous
Region
014040
Cao Mingdong
0472-4136027
15
Securities Branch in Gangtie
Street, Baotou
2/F, No. 15 Gangtie Street,
Qingshan District, Baotou
City, Inner Mongolia
Autonomous Region
014010
Ma Xiaoju
0472-6867886
16
Hohhot
Securities Branch in Xinhua
East Street, Hohhot
No. 1, 1-2/F, Orient
Restaurant, West Area of
Tuanjie Community, Xinhua
East Street, Yingxin Road,
Xincheng District, Hohhot
City, Inner Mongolia
Autonomous Region
010010
Shi Saihua
0471-3251992
336
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
17
Hebei
Shijiazhuang
Securities Branch in Ziqiang
Road, Shijiazhuang
Unit 0-103A, Commercial
Podium of Office Building
(1/F), Zhongjiao Fortune
Center T1/T2, No. 118
Ziqiang Road, Qiaoxi District,
Shijiazhuang City, Hebei
Province
050051
Han Jiancai
0311-66788203
18
Fujian
Fuzhou
Securities Branch in North
Wuyi Road, Fuzhou
19/F, Block 3, Zhengxiang
Center, No. 153 North Wuyi
Road, Shuibu Street, Gulou
District, Fuzhou City
350009
Peng Fei
0591-88035766
19
Quanzhou
Securities Branch in Jinhuai
Street, Quanzhou
Units 705-707, Building 1,
Zhongjun Square, No. 16
Jinhuai Street, Fengze District,
Quanzhou, Fujian Province
362000
Jiang Yongjun
0595-22187188
20
Xiamen
Securities Branch in Xiahe
Road, Xiamen
Rooms 201 & 202, Unit One,
Block B, Haiyi Building,
No. 668 Xiahe Road, Siming
District, Xiamen City
361004
Lv Yuexiang
0592-2997398
21
Zhangzhou
Securities Branch in Shuixian
Avenue, Zhangzhou
Room 101, Room 403, Room
404, Building B, No. 88
Shuixian Street, Longwen
District, Zhangzhou City,
Fujian Province
363000
Liu Huafeng
0596-2900350
337
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
22
Guangdong
Foshan
Securities Branch in Denghu
East Road, Foshan
Units 1203-1206, 12/F, Huaya
Financial Center, No. 8
Denghu East Road, Guicheng
Street, Nanhai District, Foshan
City (subject to domicile
declaration)
528200
Yang Siyu
0757-29808978
23
Guangzhou
Securities Branch in Zhujiang
West Avenue, Guangzhou
17/F (self-edited rooms 05,
06 and 07), No. 15 Zhujiang
West Avenue, Tianhe District,
Guangzhou City
510000
Wu Shiyan
020-37279969
24
Securities Branch in Pazhou
Avenue, Guangzhou
Rooms 2304, 2305, 2306 and
2307, No. 109 Pazhou Avenue,
Haizhu District, Guangzhou
City
510440
Zhu Daoming
020-39213388
25
Securities Branch in Middle
Guangzhou Avenue,
Guangzhou
Rooms 3205 and 3206, No.
307 Middle Guangzhou
Avenue, Yuexiu District,
Guangzhou City
510220
Shi Hongyang
020-37634314
26
Securities Branch in Haizhu
Plaza, Guangzhou
04, 05, 06, 25/F, No. 13
Qiaoguang West Road, Yuexiu
District, Guangzhou City
510060
Liu Li
020-83846159
27
Securities Branch in Xingmin
Road, Guangzhou
Rooms 906-911, No. 222-
3, Xingmin Road, Tianhe
District, Guangzhou
510620
Lin Hao
020-89286707
28
Securities Branch in
Tianhecheng, Guangzhou
Units 03-1, 05, 06 and 07,
36/F, Yuehai Tianhecheng
Building (namely, Tianhecheng
East Tower), No. 208 Tianhe
Road, Tianhe District,
Guangzhou City
510620
Tang Jia
020-22031389
29
Securities Branch in Yuncheng
East Road, Guangzhou
Units 201, 202, 203, 204, 205,
No. 561 Yuncheng East Road,
Baiyun District, Guangzhou
City
510420
Luo Fanglin
020-86273767
338
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
30
Dongguan
Securities Branch in Dongguan
International Trade Center
Room 3303, Building 2,
International Trade Center,
No. 1 Hongfu East Road,
Dongcheng Street, Dongguan
City, Guangdong Province
523000
Wang Lijun
0769-22827993
31
Zhongshan
Securities Branch in
Zhongshan Fifth Road,
Zhongshan
No. 2 of Unit 01, 1/F, Block 3,
Zima Benteng Square, No. 2
Zhongshan Fifth Road, Eastern
District, Zhongshan City
528403
Liao Xiwu
0760-89823338
32
Shantou
Securities Branch in
Changping Road, Shantou
Rooms 103 and 202, North
Tower, China Resources
Building, No. 95 Changping
Road, Longhu District,
Shantou City, Guangdong
Province
515041
Chen Yu
0754-89898179
33
Shenzhen
Securities Branch in Qianhai,
Shenzhen
Rooms 101, 102, 201, 202, 301
and 402, Building B7, Qianhai
Shenzhen-Hong Kong Fund
Town, No. 128 Guiwan Fifth
Road, Nanshan Sub-district,
Qianhai Shenzhen-Hong Kong
Cooperation Zone, Shenzhen
City
518031
Cheng Tao
0755-25889919
34
Securities Branch in Caitian
Road, Shenzhen
1/F & 2/F, Block 3, Fuyuan
Building, No. 2014-9 Caitian
Road, Futian District,
Shenzhen City
518026
Ma Jianmin
0755-82993655
35
Securities Branch in China
Resources Building, Keyuan
South Road, Shenzhen
Rooms L1805 & L1806, China
Resources Building, No. 2666
Keyuan South Road, Haizhu
Community, Yuehai Sub-
district, Nanshan District,
Shenzhen
518059
Li Xiaoshan
0755-86270363
36
Securities Branch in Longgang
Avenue, Shenzhen
101S & 102S, Block 2, Vanke
Times Square, Shangjing
Community, Longcheng
Subdistrict, Longgang District,
Shenzhen City (at the junction
of Longgang Avenue and
Longcheng Avenue)
518172
Ye Qing
0755-85205902
37
Securities Branch in Baidu
International Building, Keyuan
Road, Shenzhen
33/F, East Tower, Baidu
International Building, Xuefu
Road East, Yuehai Street,
Nanshan District, Shenzhen
City
518040
Gao Jian
0755-82531008
339
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
38
Securities Branch in Shennan
Avenue, Shenzhen
Room 2501A, Block B,
Phase I Donghai International
Center, No. 7888 Shennan
Road, Donghai Community,
Xiangmihu Street, Futian
District, Shenzhen City
518040
Cao Mengming
0755-82719339
39
Securities Branch in China
Resources Land Building,
Shennan Avenue, Shenzhen
Rooms 2904, 2905 and 2906,
Block D, China Resources
Land Building, No. 19 Kefa
Road, Dachong Community,
Yuehai Sub-district, Nanshan
District, Shenzhen
518057
Song Tao
0755-25870808
40
Securities Branch in Hongli
Road, Shenzhen
BC, 9/F, Block A, CIS
Commercial Center, No. 1061
Xiangmei Road, Xiangmihu
Street, Futian District,
Shenzhen City
518000
Gu Guoxu
0755-82027636
41
Securities Branch in Fund
Building, Shennan Avenue,
Shenzhen
8B, Fund Building, No. 5999
Yitian Road, Lianhua Street,
Futian District, Shenzhen City
518053
Xiao Kang
0755-23819115
42
Securities Branch in Rongchao
Business Center, Yitian Road,
Shenzhen
Rooms 2201-2212 & 2501-
2512, Building A, Rongchao
Business Center, No.
6003 Yitian Road, Fuxin
Community, Lianhua Street,
Futian District, Shenzhen City
518026
Wu Sheng
0755-83767506
43
Securities Branch in Yitian
Road, Shenzhen
Flats 02, 03, 04, 17/F, China
Travel Service HK Building,
No. 4011 Shennan Avenue,
Futian District, Shenzhen City
518048
Shen Jiayan
0755-82766159
44
Securities Branch in Ping An
Finance Center, Shenzhen
Units 04 and 05, 70/F, Ping
An Finance Center, No.
5033 Yitian Road, Fu’an
Community, Futian Street,
Futian District, Shenzhen City
518041
Wang Shaolian
0755-36996090
45
Securities Branch in Zhongxin
Road, Houhai, Shenzhen
Units 1203, 1205 and 1206,
Xizhilang Building, No. 3033
Zhongxin Road, Weilan Coast
Community, Yuehai Street,
Nanshan District, Shenzhen
518048
Chen Shun
0755-27247971
340
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
46
Guangxi
Nanning
Securities Branch in Minzu
Avenue, Nanning
Rooms 702-704, 7/F, South
Office Building, Nanning
China Resources Center, No.
136-5, Minzu Avenue, Qingxiu
District, Nanning
530029
Lin Lianbin
0771-5570215
47
Wuzhou
Securities Branch in Xidi 3rd
Road, Wuzhou
Business office No. 3-2 and
business apartment Nos. 2801-
2809, 1/F, No. 19 Xidi 3rd
Road, Wuzhou City
543002
Qin Shumin
0774-3862288
48
Hainan
Haikou
Securities Branch in Guoxing
Road, Haikou
Room 3807, 38/F, New Hainan
Building, No. 5 Guoxing Road,
Meilan District, Haikou City,
Hainan Province
570102
He Ruijin
0898-66202789
49
Sanya
Securities Branch in Yingbin
Road, Sanya
Unit 1201, Yangguang
Financial Square, No. 360-1
Yingbin Road, Jiyang District,
Sanya City, Hainan Province
572021
Zhao Yang
0898-88211669
50
Shanxi
Taiyuan
Securities Branch in Changzhi
Road, Taiyuan
Room 301, 3/F, Block
C, Juxin International,
No. 331 Changzhi Road,
Xuefu Industrial Park,
Shanxi Transformation
Comprehensive Reform
Demonstration Zone
030001
Wang Guoqi
0351-7775553
51
Henan
Zhengzhou
Securities Branch in Jingsan
Road, Zhengzhou
Guanghui Building, No. 15,
Jingsan Road, Jinshui District,
Zhengzhou City
450003
Yu Dong
0371-65585009
52
Securities Branch in Nongye
Road, Zhengzhou
No. 101, Floors 1-2, Building
1, No. 16, East Nongye Road,
Jinshui District, Zhengzhou
City
450000
Zhou Rui
0371-60958371
53
Securities Branch in Ruyi West
Road, Zhengzhou
Nos.107 & 305, Kailin
Building, No. 99 Ruyi West
Road, Zhengzhou District
(Zhengdong), Henan Pilot Free
Trade Zone
450008
Xia Mengfei
0371-58670567
341
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
54
Heilongjiang
Harbin
Securities Branch in West 16th
Street, Harbin
No. 15, West 16th Street,
Daoli District, Harbin City,
Heilongjiang Province
150010
Li Yan
0451-51531355
55
Securities Branch in Xuanhua
Street, Harbin
Floors 1-2, Block B, Aocheng
International, No. 239,
Xuanhua Street, Nangang
District, Harbin City
150001
Wang Qishen
0451-51998768
56
Mudanjiang
Securities Branch in Xiyitiao
Road, Mudanjiang
No. 236, Xiyitiao Road, Xi’an
District, Mudanjiang City,
Heilongjiang Province
157001
Ma Xiuhui
0453-8111898
57
Suihua
Securities Branch in
Zhengyang Street, Zhaodong,
Suihua
Zhengyang South 10th Street,
No. 3, Zhaodong, Suihua City,
Heilongjiang Province (Office
of ICBC Zhaodong Branch on
the 2/F)
151100
Sun Peng
0455-8182228
58
Daqing
Securities Branch in Xinchao
Street, Daqing
Commercial Service Building
S10, Xinchao Jiayuan
Community Phase I, Ranghulu
District, Daqing City,
Heilongjiang Province
163400
Zheng Ye
0459-8971477
59
Jilin
Changchun
Securities Branch in Minkang
Road, Changchun
No. 855, Minkang Road,
Nanguan District, Changchun
City
130041
Zhen Maofei
0431-81910599
60
Securities Branch in Ziyou
Avenue, Changchun
No. 1000, Ziyou Avenue,
Chaoyang District, Changchun
City
130021
Guo Jiayin
0431-81919187
61
Jilin
Securities Branch in Jiefang
East Road, Jilin City
Branch No. 7, Dongchang
Complex Building 2, No. 62
Jiefang East Road, Changyi
District, Jilin City, Jilin
Province
132001
Zhou Laiying
0432-65128799
342
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
62
Hubei
Xiaogan
Securities Branch in Zijin
Road, Anlu
No. 1, Zijin Road, Anlu City,
Hubei Province
432600
Zou Yizhao
0712-5231718
63
Securities Branch in Xiyue
Avenue, Dawu
Xiyue Avenue, Dawu County,
Hubei Province
432800
Chen Junhong
0712-7226466
64
Securities Branch in Xiannv
Avenue, Hanchuan
No. 215, Xiannv Avenue,
Hanchuan City, Hubei
Province
431600
Si Guoyao
0712-8296358
65
Securities Branch in
Changzheng Road, Xiaogan
No. 29, Changzheng Road,
Xiaogan City, Hubei Province
432000
Zhang Hongkai
0712-2326827
66
Securities Branch in West
Main Street, Yingcheng
Shop 20, Gucheng Xindu,
Gucheng Avenue, Chengzhong
Street, Yingcheng City,
Xiaogan City, Hubei Province
432400
Zhang Xingxin
0712-3226017
67
Securities Branch in Chaoyang
Road, Yunmeng
No. 1, Chaoyang Road,
Yunmeng County, Hubei
Province
432500
Long Nina
0712-4338338
68
Enshi
Securities Branch in Jingui
Avenue, Enshi
No. 15, Jingui Avenue, Enshi
City, Hubei Province
445000
Feng Bo
0718-8237528
69
Securities Branch in Yezhou
Avenue, Jianshi
No. 109, Yezhou Avenue,
Yezhou Town, Jianshi County
445300
Chen Yan
0718-3230098
70
Securities Branch in Chutian
Road, Badong
No. 5 Chutian Road, Badong
County, Enshi Tujia and Miao
Autonomous Prefecture, Hubei
Province
444300
Zhang Zhenqian
0718-8239026
71
Securities Branch in Fengxiang
Avenue, Laifeng
No. 87, Fengxiang Avenue,
Laifeng County
445700
Zhou Bingjie
0718-6288118
72
Securities Branch in Nanbin
Avenue, Lichuan
Rooms 106 and 107, Block 8,
Nanbin Garden, No. 66 Nanbin
Avenue, Group 1, Wangjiawan
Village, Dongcheng Subdistrict
Office, Lichuan City
445400
Qin Xiqiong
0718-7283339
73
Jingzhou
Securities Branch in Middle
Jiangjin Road, Jingzhou
No. 14, Floor 1-2, Building 2,
Xiangxie Lidu, Middle Jiangjin
Road, Shashi District, Jingzhou
City
434000
Zhou Wenting
0716-8249551
74
Securities Branch in Bijiashan
Road, Shishou
No. 88, Bijiashan Road, Xiulin
Agency, Shishou City
434400
Pan Jianping
0716-7298253
343
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
75
Shiyan
Securities Branch in Chaoyang
Middle Road, Shiyan
No. 29, Chaoyang Middle
Road, Maojian District, Shiyan
City
442000
Wang Lin
0719-8688188
76
Wuhan
Securities Branch in Minzu
Avenue, Wuhan
No. 1 Minzu Avenue,
Hongshan District, Wuhan City
430074
Xu Hui
027-87575660
77
Securities Branch in Jianghan
Road, Wuhan
R1, 1/F and R1-R3, 2/F,
Shipping International Plaza,
No. 250 Jianghan Road,
Jiang’an District, Wuhan City
430032
Li Pan
027-83632286
78
Securities Branch in Youyi
Avenue, Wuhan
Rooms 03 and 04, 1/F, Unit
3, Building 1, Vanke Jinyu
Huafu, No. 29 Fangji Road,
Yangyuan Street, Wuchang
District, Wuhan City
430080
Wang Kai
027-86880966
79
Securities Branch in Gaoxin
Avenue, Wuhan
A103-A111, 1/F and
A205-A208, 2/F, Tower A,
Huigu Building, No. 768
Gaoxin Avenue, Donghu New
Technology Development
Zone, Wuhan City
430060
Zhang Suicui
027-88133377
80
Securities Branch in Zhongbei
Road, Wuhan
Nos. 02, 03, 05, 10, 37/
F (42/F of elevator), Block
T1, and Part Shop No. 7,
1/F, Block T3, Phase II
of Changchenghui, No. 9
Zhongbei Road, Wuchang
District, Wuhan City, Hubei
Province
430070
Liu Hongyan
027-87816068
81
Securities Branch in Xinhua
Road, Wuhan
No. 314, Xinhua Road,
Jianghan District, Wuhan City
430015
Zhang Feng
027-85558889
82
Xiangyang
Securities Branch in Hanjiang
North Road, Xiangyang
Block 1, Wall Street, No.
115 Hanjiang North Road,
Fancheng District, Xiangyang
City, Hubei Province
441000
Li Qiaoni
0710-3278298
83
Huanggang
Securities Branch in Dongmen
Road, Huanggang
Shops 101 & 102, 1/F and No.
201, 2/F, Building 8, No. 91-
36 Dongmen Road, Huangzhou
District, Huanggang City,
Hubei Province
438000
Ning Yi
0713-8613915
84
Securities Branch in Minzhu
Road, Wuxue
Shops 101-104 and 201-203,
Building 3, Guoding Mansion,
No. 138-17 Minzhu Road,
Wuxue City, Hubei Province
435400
Xu Jian
0713-6758589
85
Securities Branch in Ronghui
Road, Macheng
No. 33, Ronghui Road,
Macheng City, Hubei Province
438300
Zou Rui
0713-2772385
344
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
86
Yichang
Securities Branch in Zilong
Road, Dangyang
No. 59, Zilong Road,
Dangyang City, Hubei
Province
444100
Wang Zhenpeng
0717-3252238
87
Securities Branch in Xiling
First Road, Yichang
No. 10, Xiling First Road,
Yichang City
443000
You Jianghua
0717-6229898
88
Securities Branch in
Changjiang Avenue, Yidu
No. 167, Changjiang Avenue,
Lucheng, Yidu City
443300
Hu Dewen
0717-4836899
89
Securities Branch in Park
Road, Zhijiang
Junction of Tuanjie Road and
Park Road, Majiadian, Zhijiang
City
443200
Yang Run
0718-4200539
90
Hunan
Changsha
Securities Branch in Furong
Middle Road, Changsha
Units 30028-30032, Fuxing
Commercial Plaza, No. 303,
Section 1, Furong Middle
Road, Kaifu District, Changsha
City, Hunan Province
410007
Zhan Xiaoqiang
0731-85561098
91
Yueyang
Securities Branch in Tianyue
Avenue, Pingjiang, Yueyang
Beside to the Local Tax
Bureau, Tianyue Avenue,
Pingjiang County, Yueyang
City
414500
Chen Muyuan
0730-6297006
92
Securities Branch in Yueyang
Avenue, Yueyang
Rooms 1818, 1819, 1820,
Building 4, Wanxiang
Ruicheng, No. 219 Yueyang
Avenue West, Yueyanglou
District, Yueyang City
414000
Tang Jingyu
0730-8240599
93
Jiangxi
Nanchang
Securities Branch in Yanjiang
North Avenue, Nanchang
2# Hotel of Peace International
Hotel, Rooms 107, 803 and
804 of Office Building, No.
69, Yanjiang North Road,
Donghu District, Nanchang
City, Jiangxi Province
330006
Wu Di
0791-86270340
94
Securities Branch in Fenghe
Middle Avenue, Nanchang
North side of Room 104
and Room 204, No. 2 Office
and Commerce Building,
Xinghehui Business Center,
No. 1333 Fenghe Middle
Avenue, Honggutan New
District, Nanchang City,
Jiangxi Province
330100
Han Tao
0791-83751699
95
Ganzhou
Securities Branch in M&A
Fund Park, Ganzhou
Shops 1-1, 1-10, 2-1 and
2-10, Building 1, Yangming
International Center,
Zhangjiang New Zone,
Zhanggong District, Ganzhou
City, Jiangxi Province
341000
Liu Jingwei
0797-5886858
96
Jiangsu
Changzhou
Securities Branch in Dongheng
Street, Changzhou
No. 2, Dongheng Street,
Changzhou City
213003
Zou Wenjuan
0519-81000818
345
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
97
Securities Branch in Heping
North Road, Changzhou
No. 9, Heping North Road
213000
Jing Wei
0519-85522173
98
Securities Branch in Taihu
East Road, Changzhou
Nos. 1-10, 11, 12, 26, 27
and 28, Fuchen Park, Taihu
East Road, Xinbei District,
Changzhou City
213000
Yan Yao
0519-86921660
99
Securities Branch in Huayuan
Street, Changzhou
A-101 and 201, No. 137
Huayuan Street, Wujin
District, Changzhou City,
Jiangsu Province
213159
Yang Lu
0519-86600788
100
Securities Branch in Nanhuan
First Road, Jintan
Nos. 109, 110, 111 and 112,
Building 1, Binhe Xingcheng,
Jintan District, Changzhou
City
213200
Yao Haitang
0519-82696969
101
Securities Branch in South
Street, Liyang
No. 91, South Street, Liyang
City
213300
Lin Weinian
0519-85809762
102
Huaian
Securities Branch in East
Huahai Road, Huaian
Shops 1004-1006, and Rooms
801-814, Building 1, Huifeng
Central Plaza, Huaian City
223301
Hu Xi
0517-83907888
103
Securities Branch in Fuyu
Road, Huaian
Room 101, Block 1, No. 3
Fuyu Road, Economic and
Technological Development
Zone, Huaian City
223300
Yu Le
0517-84908988
104
Securities Branch in Hongri
Avenue, Lianshui, Huaian
Rooms 103 and 104, Building
Z02, Xin Lian Yi Pin, Zhong
Lian One City, Lianshui
County, Huaian
223400
Kang Le
0517-82660908
105
Securities Branch in Xiangyu
Avenue, Huai’an District,
Huaian
No. 1007 Xiangyu Avenue,
Huaian District, Huaian City
223200
Li Naigen
0517-85198077
106
Securities Branch in Huaihe
East Road, Xuyi, Huaian
No. 45, Huaihe East Road,
Xucheng Town, Xuyi County,
Huaian City, Jiangsu Province
211700
Wang Xinyan
0517-88215061
346
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
107
Nanjing
Securities Branch in Zhenzhu
North Road, Lishui
No. 218-13, Zhenzhu North
Road, Economic Development
Zone, Lishui District, Nanjing
City, Jiangsu Province
211200
Wu Chunpeng
025-56235323
108
Securities Branch in
Qingliangmen Street, Nanjing
Room 1901, No. 39
Qingliangmen, Gulou District,
Nanjing City
210036
Zhang Haiqiao
025-86586116
109
Securities Branch in
Changjiang Road, Nanjing
1/F & 2/F, No. 99 Changjiang
Road, Nanjing City
210005
Xing Qin
025-84798478
110
Securities Branch in Baota
Road, Gaochun, Nanjing
No. 188-6, Baota Road,
Chunxi Town, Gaochun
District, Nanjing City, Jiangsu
Province
211300
Jiang Lai
025-56816719
111
Securities Branch in Wenlan
Road, Nanjing
No. 6, Wenlan Road, Xianlin
University Town, Qixia
District, Nanjing
210024
Li Boyang
025-58010075
112
Securities Branch in Lushan
Road, Nanjing
No. 168, Lushan Road, Jianye
District, Nanjing City
210029
Yao Yuechuan
025-83539779
113
Securities Branch in Minzhi
Road, Nanjing
12/F, Block N, Nanjing Zendai
Hima Centre, No. 2 Minzhi
Road, Yuhuatai District,
Nanjing
210002
Li Guoping
025-86895618
114
Securities Branch in Tianyuan
East Road, Jiangning, Nanjing
Rooms 801-805, Building
8, Fortune Plaza II, No. 228
Tianyuan East Road, Chunhua
Street, Jiangning, Nanjing City
211100
Hou Jiarui
025-83389130
115
Securities Branch in Daguang
Road, Nanjing
Room 202A, Guanghua
Building, No. 39 Daguang
Road, Qinhuai District,
Nanjing City
210016
Li Ying
025-84636866
116
Securities Branch in
Xiongzhou West Road, Liuhe,
Nanjing
9/F, Building 1, No. 12
Xiongzhou West Road,
Xiongzhou Street, Liuhe
District, Nanjing City
211500
Xie Xiangshun
025-57115051
117
Securities Branch in
Ningshuang Road, Nanjing
12/F, Building A, Yunmi City,
No. 19 Ningshuang Road,
Yuhuatai District, Nanjing
City, Jiangsu Province
210007
Xu Minfeng
025-84480958
347
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
118
The Second Securities Branch
in Zhongshan East Road,
Nanjing
Room 801, Panda Building,
No. 301 Zhongshan East Road,
Xuanwu District, Nanjing City
210008
Jiang Xianming
025-84701234
119
Securities Branch in
Zhimaying, Nanjing
No. 26, Zhimaying, Nanjing
City
210004
Wang Huan
025-52210618
120
Securities Branch in Zhonghua
Road, Nanjing
No. 255, Zhonghua Road,
Nanjing City, Jiangsu Province
210001
Yang Haikun
025-52238618
121
Securities Branch in Huatai
Securities Building, East
Zhongshan Road, Nanjing
25/F, No. 90 East Zhongshan
Road, Qinhuai District,
Nanjing
210009
Xu Yiping
025-84718112
122
Securities Branch in Zhenghe
Middle Road, Nanjing
Room 902, 9/F, Building
D, Nanjing Yangtze River
International Shipping Center,
No. 118, Zhenghe Middle
Road; No. 3-15-2, Yongning
Street, Gulou District, Nanjing
210003
Chu Dongbing
025-83539292
123
Securities Branch in Suyuan
Avenue, Jiangning District,
Nanjing
South Side of 1/F, Block
A1, Jiangning Jiulonghu
International Corporate
Headquarters Park, No. 19
Suyuan Avenue, Jiangning
Economic and Technological
Development Zone, Nanjing
City
210037
Tao Kan
025-83581116
124
Securities Branch in Pukou
Avenue, Nanjing
Room 3004, Building 1, No.
11 Pukou Avenue, Jiangpu
Street, Pukou District, Nanjing
210032
Ma Qiaoping
025-83176012
125
Nan Tong
Securities Branch in
Changjiang Road, Haimen
No. 231, Changjiang Road,
Haimen Town, Haimen City,
Jiangsu Province
226100
Xu Ke
0513-82227766
126
Securities Branch in Middle
Changjiang Road, Hai’an,
Nantong
No. 93, Middle Changjiang
Road, Hai’an Town, Hai’an
County, Nantong City, Jiangsu
Province
226600
Zhai Jiping
0513-88856678
127
Securities Branch in Gongnong
Road, Nantong
Rooms 2404-2405, South
Building, Harmony City, No.
57 Gongnong Road, Nantong
City
226000
Gu Zhun
0513-85126758
128
Securities Branch in Middle
Renmin Road, Nantong
East half of the 2/F, Jinxin
Building, No. 79, Middle
Renmin Road, Chongchuan
District, Nantong City
226001
Wang Yongsheng 0513-85123188
129
Securities Branch in Jianghai
Road, Rudong, Nantong
Southern section of the 4/F,
Room 101, Zhongyang Plaza,
No. 2 East Jianghai Road,
Chengzhong Street, Rudong
County
226400
Shi Shushu
0513-84883333
348
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
130
Securities Branch in Shanghai
East Road, Nantong
Room 101, Block 2,
Jinhaiyuan, Development
Zone, Nantong City
226009
Zhu Bing
0513-85895597
131
Securities Branch in New
Century Avenue, Tongzhou,
Nantong
Office 01B-2, No. 170, New
Century Avenue, High-tech
Zone, Nantong
226300
Ji Xi
0513-81692959
132
Securities Branch in Yaogang
Road, Nantong
No. 6, Yaogang Road, Nantong
City, Jiangsu Province
226006
Sha Fei
0513-85580999
133
Securities Branch in Middle
Renmin Road, Qidong
No. 505, Middle Renmin Road,
Huilong Town, Qidong City,
Jiangsu Province
226200
Yao Liang
0513-83652208
134
Securities Branch in Fushou
Road, Rugao
Rooms 2-1 & 2-2, Complex
Building, Chengjian Jiayuan
Phase III, Rucheng Town,
Rugao City, Jiangsu Province
226500
Jiang Nan
0513-87335888
135
Suzhou
Securities Branch in
Jinshajiang Road, Changshu
No. 18, Jinshajiang Road,
Changshu City, Jiangsu
Province
215500
Zhang Zhen
0512-67579766
136
Securities Branch in
Heilongjiang North Road,
Kunshan
Room 3-1, 1/F and Room
20, 3/F, Building 3, Yujing
Mansion, No. 8 Heilongjiang
North Road, Kunshan
Development Zone
215300
Liu Xinglin
0512-55219166
137
Securities Branch in Ganjiang
West Road, Suzhou
No. 1359, Ganjiang West
Road, Suzhou City, Jiangsu
Province
215004
Lu Renyan
0512-68270515
138
Securities Branch in Heshan
Road, Suzhou
2/F, Building 2, Jinri Jiayuan
(No. 56, Heshan Road),
Hightech Zone, Suzhou City
215000
Zhang Lin
0512-68785488
139
Securities Branch in Renmin
Road, Suzhou
No. 1925, Renmin Road,
Suzhou City, Jiangsu Province
215001
Pan Yi
0512-52895998
140
Securities Branch in East
Suzhou Avenue, Suzhou
29A, Modern Media Plaza,
No. 265 East Suzhou Avenue,
Suzhou Industrial Park
215028
Li Xinran
0512-67248873
141
Securities Branch in Xinshi
Road, Suzhou
No. 102, Xinshi Road,
Canglang District, Suzhou
City, Jiangsu Province
215007
Guo Hengxi
0512-65187816
142
Securities Branch in Taiping
South Road, Taicang
1-2/F, Building 1, No.
36, Taiping South Road,
Chengxiang Town, Taicang
City
215400
Liu Lihong
0512-53589559
349
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
143
Securities Branch in
Guangzhou Road, Shengze
Town, Wujiang
Room 107, Huiying Mansion,
Financial Business Center,
North Side of Chenjiaqiao
Village Road, Xincheng
District, Shengze Town,
Wujiang District, Suzhou City
215228
Fan Xiaofeng
0512-63910061
144
Securities Branch in Middle
Changjiang Road, Jingang
Town, Zhangjiagang
No. 251, Middle Changjiang
Road, Jingang Town,
Zhangjiagang City, Jiangsu
Province
215633
Wang Guohua
0512-56767800
145
Securities Branch in Yangshe
East Road, Zhangjiagang
No. 2, Yangshe Road East
215600
Lu Rong
0512-58127000
146
Securities Branch in Wuzhong
Avenue, Suzhou
Rooms 106, 111,112 on 1/F
and Rooms 202 & 203 on 2/F,
Wuzhong Commercial Center,
Building 1, No. 198 Su Street,
Yuexi Sub-district, Wuzhong
Economic Development Zone,
Suzhou
215104
Sun Qiang
0512-66021886
147
Securities Branch in Gaoxin
Road, Wujiang District,
Suzhou
Nos. 946 and 948, Gaoxin
Road, Songling Town,
Wujiang District, Suzhou City
215200
Zhao Yang
0512-63956208
148
Taizhou
Securities Branch in East
Street, Jiangyan
No. 23, East Avenue, Luotang
Street, Jiangyan District,
Taizhou City, Jiangsu Province
225500
Miao Genping
0523-88209518
149
Securities Branch in Fuyang
Road, Jingjiang
101, Block A3,
Financial
Business District, No. 2
Fuyang Road, Jingjiang City
214500
Wu Haojun
0523-89101088
150
Securities Branch in Guoqing
West Road, Taixing
D106 & D206, Hotel Building
4, Qingyun Garden, Taixing
City, Jiangsu Province
225400
Tao Jin
0523-87095597
151
Securities Branch in Yongding
East Road, Gaogang, Taizhou
2/F, Building 3, No. 288
Yongding East Road, Taizhou
City
225300
Ji Tao
0523-86985597
152
Securities Branch in Middle
Yingwu Road, Xinghua,
Taizhou
No. 198, Middle Yingwu Road,
Xinghua City, Jiangsu province
225700
Cai Li’ang
0523-83256333
350
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
153
Wuxi
Securities Branch in Futai
Road, Jiangyin
5/F, New Baiye Square, No. 8
Futai Road, Jiangyin City
214421
Zhang Ye
0510-86837528
154
Securities Branch in Huandong
Road, Huashi Town, Jiangyin
No. 680, Huandong Road,
Huashi Town, Jiangyin City
214421
Chen Dongdong
0510-81662778
155
Securities Branch in West
Avenue, Zhouzhuang Town,
Jiangyin
No. 628 Zhouzhuang West
Avenue, Zhouzhuang Town,
Jiangyin City
214423
Yan Ming
0510-81660113
156
Securities Branch in Hongqiao
North Road, Changjing Town,
Jiangyin
No. 10, Hongqiao North Road,
Changjing Town, Jiangyin City
214411
Zhou Junning
0510-81662758
157
Securities Branch in Yingxiu
Road, Qingyang Town,
Jiangyin
No. 111, Yingxiu Road,
Qingyang Town, Jiangyin City
214401
Liu Chaohui
0510-86817241
158
Securities Branch in Shenpu
Road, Lingang, Jiangyin
No. 108, Shenpu Road,
Lingang Sub-district, Jiangyin
City
214443
Huang Yaqiu
0510-81666278
159
Securities Branch in Liangqing
Road, Wuxi
1/F, Jiangong Building, No. 56
Liangqing Road, Wuxi City
214000
Lu Yunjie
0510-82768155
160
Securities Branch in Jiefang
West Road, Wuxi
No. 327, Jiefang West Road,
Wuxi City
214000
Tang Kai
0510-82722975
161
Securities Branch in Financial
First Street, Wuxi
101B, No. 15 Financial First
Street, Taihu Street, Binhu
District, Wuxi City
214123
Yi Zilong
0510-85065672
162
Securities Branch in Hefeng
Road, Wuxi
102-2, 103-2, Building 1,
Huiye Business Plaza, No. 32
Hefeng Road, Xinwu District,
Wuxi City
214021
Dong Jun
0510-85045101
163
Securities Branch in Jiefang
East Road, Yixing
No. 177, Jiefang East Road,
Yicheng Sub-district, Yixing
City
214299
Wan Lei
0510-80793526
164
Lianyungang
Securities Branch in Tongguan
South Road, Lianyungang
No. 69, Tongguan South Road,
Haizhou District, Lianyungang
City, Jiangsu Province
222001
Wang Lei
0518-85519068
165
Suqian
Securities Branch in Yongkang
Road, Shuyang, Suqian
Room 101-2-1, Financial and
Insurance Building, South Side
of Suzhou Road and West Side
of Yongkang Road, Shuyang
County, Suqian City
223600
Feng Lingtong
0527-87880259
166
Securities Branch in Hongze
Lake Road, Suqian
No. 581, Hongze Lake Road,
Suqian City
223800
Zhang Yang
0527-84390068
351
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
167
Xuzhou
Securities Branch in Science
Park, Xuzhou
Room 103, 1/F & Rooms 306,
307 and 308, 3/F, Technology
Building, Technology Avenue,
Quanshan District, Xuzhou
City
221006
Zhou Xuehong
0516-85850911
168
Securities Branch in Tangmu
Road, Pei County, Xuzhou
No. 2, Tangmu Road, Pei
County, Xuzhou City, Jiangsu
Province
221600
Shi Zhikun
0516-81202066
169
Securities Branch in Huaihai
East Road, Xuzhou
No. 165, 1F/F and Rooms 2102
– 2105, Unit A, Suning Plaza,
No. 29 Huaihai East Road,
Gulou District, Xuzhou City
221000
Jiao Shuai
0516-83718027
170
Securities Branch in Suihe
North Road, Suining, Xuzhou
Southeast Corner, 1/F,
Building 2, Business Service
Center, New Economic and
Technology Park, No. 223
Suihe North Road, Suining
County, Xuzhou City, Jiangsu
Province
221200
Zhang Lei
0516-88307899
171
Securities Branch in Qinjun
Road, Xuzhou
1-104, Building 6 (previously
9), Area 3, Financial Service
Center,
Huaihai Economic
Zone, No. 1 Qinjun Road,
Yunlong District, Xuzhou City
221116
Xu Xiaonan
0516-83318255
172
Securities Branch in Jianguo
West Road, Xuzhou
Room 109, 1/F & Room 205,
2/F, Block 1A, Fortune Plaza,
No. 75 Jianguo West Road,
Xuzhou City
221000
Zhang Zhengxing 0516-85803998
173
Securities Branch in Daqiao
West Road, Xinyi
No. 8, Daqiao West Road,
Xinyi, Xuzhou City, Jiangsu
Province
221400
Han Chao
0516-88989808
174
Securities Branch in
Zhongyang Avenue, Feng
County, Xuzhou
(Shops 2-10, Mingshi Garden),
No. 5101 Zhongyang Avenue,
Feng County, Xuzhou City,
Jiangsu Province
221700
Sun Chaoxing
0516-66650656
352
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
175
Yancheng
Securities Branch in Renmin
South Road, Dafeng, Yancheng
Rooms 102, 103 and 104,
Building B, Yangguang Mall,
Dafeng District, Yancheng
224100
Shen Zhongqin
0515-83928806
176
Securities Branch in Middle
Hailing Road, Dongtai
Rooms 8017 & 8018, Building
3, Shangye New Village,
No. 78 Middle Hailing Road,
Dongtai
224200
Xi Jing
0515-85105761
177
Securities Branch in South
Hongxing Alley, Binhai,
Yancheng
Room 15-103 and Room 15-
104, No. 15 Commercial and
Residential Building, No.
16 Commercial and Office
Building, Lvdu Jiayuan, No.
29 South Hongxing Alley,
Dongkan Street, Binhai County
224500
Zhou Dehong
0515-87021988
178
Yangzhou
Securities Branch in Pinghuai
Road, Gaoyou, Yangzhou
No. 37, Pinghuai Road,
Gaoyou
225600
Sheng Fuqing
0514-85089721
179
Securities Branch in Yeting
East Road, Baoying, Yangzhou
No. 10, Yeting East Road,
Baoying County
225800
Yu Jie
0514-88259411
180
Securities Branch in South
Longchuan Road, Jiangdu,
Yangzhou
Nos. 220, 222 and 226,
Business Buildings, Longchuan
Road, Zhongyuan Europe City,
Xiannv Town, Jiangdu District,
Yangzhou City
225200
Liu Handong
0514-86534998
181
Securities Branch in Changjian
Center, Museum Road,
Yangzhou
6-2001, 2002, 2019, 2020,
2021, 2022, 2023, 2024, 20/
F, Changjian Center, No.
364 Museum Road, Hanjiang
District, Yangzhou City
225000
Qiao Qi
0514-82982003
182
Securities Branch in Wenchang
Middle Road, Yangzhou
No. 406, Wenchang Middle
Road, Yangzhou City, Jiangsu
Province
225001
Xu Xuefeng
0514-87366418
183
Securities Branch in Zhenzhou
East Road, Yizheng, Yangzhou
No. 101, Zhenzhou East Road,
Zhenzhou Town, Yizheng City,
Jiangsu Province
211400
Xu Yiming
0514-83962098
353
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
184
Zhenjiang
Securities Branch in
Huangshan South Road,
Zhenjiang
Rooms 101, 201, 301, Block
1, Huangshan Yaju, No.
6 Huangshan South Road,
Zhenjiang City, Jiangsu
Province
212000
Wu Jiarong
0511-85037099
185
Securities Branch in Cuizhu
South Road, Yangzhong
No. 235, Cuizhu South
Road, Sanmao Sub-district,
Yangzhong City
212200
Yin Hang
0511-88399933
186
Securities Branch in Guyang
Middle Avenue, Dantu,
Zhenjiang
Rooms 131-133, 236-237, 239,
241, 243, Hengyu Building,
Guyang Middle Avenue, Dantu
District, Zhenjiang City
212000
Xu Rui
0511-85115898
187
Securities Branch in
Fenghuang Road, Danyang,
Zhenjiang
Nos. 16-1 to 16-3, Fenghuang
Road, Development Zone,
Danyang
212300
Hou Yeping
0511-86699772
188
Securities Branch in Huayang
North Road, Jurong, Zhenjiang
No. 1, Huayang North Road,
Huayang Town, Jurong City
212400
Liu Heng
0511-85979998
189
Liaoning
Dalian
Securities Branch in Shengli
East Road, Dalian
Nos. 223 and 231, Market
Street; Nos. 2-1, 2-2 and 2-3,
Unit 1, No. 227 Market Street,
Xigang District, Dalian City,
Liaoning Province
116013
Nie Boshi
0411-82815866
190
Securities Branch in Gangxing
Road, Dalian
Rooms 01, 02 & 03-1, 13/
F, Exchange Square, No. 40
Gangxing Road, Zhongshan
District, Dalian City, Liaoning
Province
116021
Zhang Yuwei
0411-84342688
191
Panjin
Securities Branch in Huibin
Street, Panjin
1#1708-1715, Area E of Blue
Kangqiao, South of Huibin
Street and East of Xiangdao
Road, Xinglongtai District,
Panjin City, Liaoning Province
124010
Wang Fan
0427-3257500
192
Shenyang
Securities Branch in Daxi
Road, Shenyang
No. 187, Daxi Road, Shenhe
District, Shenyang City,
Liaoning Province
110014
Wang Hui
024-31976665
193
Securities Branch in
Guangrong Street, Shenyang
(0300) No. 23, Guangrong
Street, Heping District,
Shenyang City, Liaoning
Province
110003
Liu Xiaoqing
024-31883577
194
Securities Branch in Qingnian
Street, Shenyang
No. 318 (Gate 1) and No.
320 (Annex Building 201),
Qingnian Street, Heping
District, Shenyang City
110004
Zhang Sai
024-31883388
195
Yingkou
Securities Branch in Bohai
Street, Yingkou
No. 16-A-1, Bohai Street East,
Zhanqian District
115000
Tang Wei
0417-3350961
354
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
196
Shandong
Jinan
Securities Branch in Jingqi
Road, Jinan
West Hall, 1F, Runheng
Building, No. 83, Jingqi Road,
Shizhong District, Jinan City
250000
Zhang Qinlei
18660186343
197
Securities Branch in Jiefang
East Road, Jinan
Room 203, 2/F, Podium of
Shandong Port Luhai Logistics
Building, No. 25-6 Jiefang
East Road, Lixia District, Jinan
City
250061
Ji Xiankun
0531-82318318
198
Securities Branch in Jiefang
Road, Jinan
1/F, East Dongyuan Building,
No. 30 Jiefang Road, Lixia
District, Jinan City
250013
Li Shuai
0531-85829568
199
Yantai
Securities Branch in
Changshan Road, Laiyang
No. 32, Changshan Road,
Laiyang City, Shandong
Province
265200
Zang Peng
0535-7999111
200
Securities Branch in South
Street, Yantai
No. 236, South Street, Zhifu
District, Yantai City, Shandong
Province
264000
Wang Xiaodong
0535-2150055
201
Qingdao
Securities Branch in West
Hong Kong Road, Qingdao
No. 79, West Hong Kong
Road, Shinan District,
Qingdao, Shandong Province
266071
Wang Qiang
0532-83861188
202
Linyi
Securities Branch in
Jinqueshan Road, Linyi
Room 101, Block B, Weite
Tianyuan Square, Jinqueshan
Road, Lanshan District, Linyi
City, Shandong Province
276000
Jing Jianfei
0539-7030698
203
Shanghai
Shanghai
Securities Branch in Jiangning
Road, Putuo District, Shanghai
Room 901, No. 1158,
Jiangning Road, Putuo District,
Shanghai
200060
Chen Xiaoxue
021-33532200
204
Securities Branch in West
Guangzhong Road, Jing’an
District, Shanghai
Rooms 1103 & 1105, Nos.
359 & 365, West Guangzhong
Road, Jing’an District,
Shanghai
200435
Bao Jianghao
021-56761987
205
Securities Branch in Feihong
Road, Hongkou District,
Shanghai
Units 2803, 2804, 2805, 2806,
Building 1, No. 118, Feihong
Road, Hongkou District,
Shanghai
200433
Qi Lili
021-33621855
206
Securities Branch in Longqi
Road, Xuhui District, Shanghai
Rooms 0101 & 0102, 1/F, and
Room 0501, 5/F (actually 4/
F), Block 1, No. 158, Longqi
Road, Xuhui District, Shanghai
200003
He Wei
021-63181398
207
Securities Branch in Raffles
Square, Huangpu District,
Shanghai
Room 5003-05 (actual room
numbers are 4403A, 4403B,
4404), No. 268, Central Tibet
Road, Huangpu District,
Shanghai
200042
Shi Cao
021-63550001
208
Securities Branch in Weihai
Road, Jing’an District,
Shanghai
Room 1305, No. 511, Weihai
Road, Jing’an District,
Shanghai
200041
Xu Yixuan
021-62678287
355
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
209
Securities Branch in
Mudanjiang Road, Shanghai
5/F, No. 1508, Mudanjiang
Road, Baoshan District,
Shanghai
201999
Duan Baodong
021-56106616
210
Securities Branch in Wangyuan
South Road, Fengxian District,
Shanghai
Nos. 46, 47, 48 and 49,
Miaojing New Village,
Fengxian District, Shanghai
201400
Yang Junjie
021-67136006
211
Securities Branch in Kaixuan
Road, Changning District,
Shanghai
Room 1701, Building 1,
Changning International
Development Plaza, No. 1388
Kaixuan Road, Changning
District, Shanghai
200120
Hu Shengqi
021-20773068
212
Securities Branch in
Tianyaoqiao Road, Xuhui
District, Shanghai
Rooms 1103, 1105, 1107 and
1109, No. 329, Tianyaoqiao
Road, Xuhui District, Shanghai
200030
Fu Chenjing
021-54254885
213
Securities Branch in Rushan
Road,
Pudong New District,
Shanghai
Area A of Ground Floor and
Area B of Second Floor, Nos.
229, 231, Rushan Road, China
(Shanghai) Pilot Free Trade
Zone
200336
Wang Jie
021-52983009
214
Securities Branch in Wuding
Road, Shanghai
6/F & 7/F, No. 1088, Wuding
Road, Jing’an District,
Shanghai
200040
Zhang Renrong
021-62566063
215
Securities Branch in South
Huangpi Road, Huangpu
District, Shanghai
Units 01B, 02, 03, 05, 06,
3/F, Building A, Block 4, No.
1, Lane 838, South Huangpi
Road, Huangpu District,
Shanghai
200011
Huang Weiqing
021-63356099
216
Securities Branch in Miaojing
Road, Pudong New District,
Shanghai
1-3/F, No. 642, Miaojing Road,
Pudong New District, Shanghai
201299
Miao Cong
021-33825017
217
Securities Branch in Century
Avenue, Pudong New District,
Shanghai
3/F, No. 1229 Century Avenue,
China (Shanghai) Pilot Free
Trade Zone
200120
Luo Fei
021-58392077
218
Securities Branch in Dongfang
Road, Pudong New District,
Shanghai
Rooms 03 and 04, 15/F
(actually Rooms 03 and 04,
12/F), No. 18 Dongfang Road,
China (Shanghai) Pilot Free
Trade Zone
201120
Chen Xiaoyan
021-50711727
219
Securities Branch in Binjiang
Avenue, Pudong New District,
Shanghai
Room 101, 1/F Lobby, No.
12 Dongfang Road, China
(Shanghai) Pilot Free Trade
Zone
201120
Dai Xiang
021-50967056
356
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
220
Sichuan
Chengdu
Securities Branch in Jinhui
West 2nd Street, Chengdu
Room 2103, 21/F, Unit 1,
Building 10, Tianfu Xingu,
No. 399, West Section,
Fucheng Avenue, Hitech Zone,
Chengdu, China (Sichuan)
Pilot Free Trade Zone
610000
Yang Rui
028-87448096
221
Securities Branch in Tianfu
Square, Chengdu
Nos. 02 and 03, 21/F, Unit 1,
Block 1, No. 5 Xiyu Street,
Qingyang District, Chengdu
City, Sichuan Province
610041
Liu Feng
028-85512252
222
Securities Branch in Renmin
South Road, Chengdu
Rooms 1506 and 1507, 15/F,
Unit 1, Building 1, Xinxiwang
Building, No. 45, Renmin
Road South Section IV,
Wuhou District, Chengdu City,
Sichuan Province
610031
Li Huiying
028-85590880
223
Securities Branch in Shujin
Road, Chengdu
Rooms 1901 and 1905, Block
B, Jinsha Wanrui Center, No.
1 Shujin Road, Qingyang
District, Chengdu City
610091
Li Xiao
028-61505176
224
Securities Branch in Tianfu
Avenue, Chengdu
Nos. 1401 and 04 (self-
numbered), 14/F, Block 1, No.
588 Middle Section of Tianfu
Avenue, Hitech Zone, Chengdu
City, China (Sichuan) Pilot
Free Trade Zone
610213
Wang Hongtao
028-85640443
225
Securities Branch in Shixili,
Xipu, Chengdu
Annexes 13 and 14 of No. 68
Yuanlin Road, Xipu Town,
Pidu District, Chengdu City
611731
Shang Guang
028-87843269
226
Deyang
Securities Branch in Diamond
Plaza, Changjiang West Road,
Deyang
A2, A3, A4, A5 and A6, 5/F,
Building 1, Diamond Plaza,
No. 29, Section 2, Changjiang
West Road, Deyang, Sichuan
Province
618100
Huang Wanqing
0838-7201167
357
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
227
Guizhou
Guiyang
Securities Branch in Changling
North Road, Guiyang
(1509, 1510, 1511) 15/F, Unit
(1)1, North Zone, Financial
Business District, Zone B,
Zhongtian Exhibition City,
Changling North Road,
Guanshanhu District, Guiyang
City, Guizhou Province
550001
Shu Mengxiang
0851-86753279
228
Chongqing
Chongqing
Securities Branch in
Jiangbeizui, Chongqing
Rooms 1502 and 1503,
15/F, Unit 2, No. 9 Juxianyan
Square, Jiangbei District,
Chongqing
400084
Xiao Yang
023-68901837
229
Tianjin
Tianjin
Securities Branch in Baidi
Road, Tianjin
No. 240, Baidi Road, Nankai
District
300192
Zhang Haiyan
022-87893469
230
Securities Branch in Erwei
Road, Dongli Development
Zone, Tianjin
Rooms 209-211, 2/F, Caizhi
Building, No. 9, Erwei Road,
Dongli Development Zone,
Tianjin City
300399
Liu Yongjun
022-84373801
231
Securities Branch in Qinjian
Road, Tianjin
Bottom Floor (Business
Area), Yunhan Building, No.
185, Qinjian Road, Hongqiao
District
300130
Wu Yumeng
022-26532286
232
Securities Branch in Huachang
Road, Tianjin
Units 07, 08, 09 and 10, 2/F,
Building 1, No. 40, Huachang
Road, Hedong District, Tianjin
City
300151
Xu Jianguo
022-58811908
233
Gansu
Lanzhou
Securities Branch in Donggang
West Road, Lanzhou
4/F, Changye Golden Villa,
No. 621 Donggang West Road,
Chengguan District, Lanzhou
City, Gansu Province
730000
Fu Jie
0931-8106511
234
Shaanxi
Xi’an
Securities Branch in
Zhuque
Street, Xi’an
18/F, Xindi City, CapitaMall,
No. 64 West Section of South
Second Ring Road, Yanta
District, Xi’an City, Shaanxi
Province
710054
Gan Xinping
029-87889991
235
Securities Branch in Zhangba
East Road, Xi’an
1/F, Jintai Holiday Flower
City, Zhangba East Road,
Yanta District, Xi’an City
710065
Chen Yuwen
029-85587020
236
Qinghai
Xining
Securities Branch in Xinning
Road, Xining
Room 59-147, 3/F, Building 5,
Hexin Center, No. 23, Xinning
Road, Chengxi District, Xining
City, Qinghai Province
810000
Liang Xu
0971-6368338
237
Xinjiang
Yining
Securities Branch in Jiefang
West Road, Yining City
8/F, Jinrong Building, No. 243,
Jiefang West Road, Yining
City
835000
Wang Hui
0999-8986569
358
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
238
Ningxia
Yinchuan
Securities Branch in Yinjiaqu
North Street, Yinchuan
Room 101, Commercial
Building No. 1, Jinhai
Mingyue Garden, No. 65
Yinjiaqu North Street, Jinfeng
District, Yinchuan City,
Ningxia Hui Autonomous
Region
750004
Liu Zhiwei
0951-6019666
239
Zhejiang
Hangzhou
Securities Branch in Jiefang
East Road, Hangzhou
Room 14102, Building 3,
GTland Plaza, Shangcheng
District, Hangzhou City,
Zhejiang Province
310004
Wang Qianwen
0571-28002220
240
Securities Branch in Xueyuan
Road, Hangzhou
Units 02/03/04-1, 13/F above
ground, Building 9, Huanglong
International Center, No.77
Xueyuan Road, Cuiyuan Street,
Xihu District, Hangzhou City,
Zhejiang Province
310007
Jin Yifei
0571-87212722
241
Ningbo
Securities Branch in Liuting
Street, Ningbo
1-15, 3-29, 3-30, 3-31, 3-32
、
3-33, 3-34, No. 230, Liuting
Street, Haishu District, Ningbo
City, Zhejiang Province
315010
Ren Xin
0574-87023678
242
Securities Branch in
Zhongshan East Road, Ningbo
Room 1906, No. 1800
Zhongshan East Road, Shops
No. 223 and No. 225 on
Songxia Street, Fuming Street,
Yinzhou District, Ningbo City,
Zhejiang Province
315000
Li Wenhui
0574-28850168
243
Jinhua
Securities Branch in Qingyun
Street, Yiwu
1-2/F, Nos. 656, 658, 660,
Qingyun Street, Choucheng
Street, Yiwu City, Zhejiang
Province
322000
Wu Hesong
0579-85519698
244
Shaoxing
Securities Branch in Fushan,
Shaoxing
No. 213 (101 & 102), No. 215
(101 & 102) and No. 217 (233,
234 & 236-241), Huancheng
West Road, Shaoxing City,
Zhejiang Province
312000
Qiu Honghong
0575-85222928
245
Wenzhou
Securities Branch in
Yangguang Avenue, Yongjia
Shops 8-13, 1/F, Yangguang
Building, Xinqiao Village,
Jiangbei Sub-district, Yongjia
County, Zhejiang Province
325102
Zheng Keyi
0577-66992188
359
No.
Province
City
Name
Address
Zip code
Person in
charge of
securities
branches
Contact
number of
the person
in charge
246
Zhoushan
Securities Branch in Tiyu
Road, Zhoushan
No. 353, 1/F of No. 355, 1/F of
No. 357, 1/F of No. 359, Tiyu
Road, Qiandao Street, Dinghai
District, Zhoushan City, China
(Zhejiang) Pilot Free Trade
Zone
316100
Zhang Hangqing
0580-3066008
247
Taizhou
Securities Branch in Zhongxin
Avenue, Taizhou
Room 801, Block 2, Yuanjing
Center, Baiyun Street,
Jiaojiang District, Taizhou
City, Zhejiang Province
318000
Chen Huang
0576-89811389
248
Jiaxing
Securities Branch in Fanggong
Road, Jiaxing
Nos. 1115 & 1119, Fanggong
Road, Nanhu District, Jiaxing
City, Zhejiang Province
314000
Wang Guanjie
0573-82862312
360
III. OTHER INFORMATION
(I)
Accounting Firms
Accounting firm
engaged by the
Company
(domestic)
Name
Office address
Name of the
signatory
accountant
Deloitte Touche Tohmatsu
Certified Public Accountants LLP
30/F, 222 Yan An Road East,
Huangpu District, Shanghai, the PRC
Hu Xiaojun, Han Jian
Accounting firm
engaged by the
Company
(Hong Kong)
Name
Office address
Name of the
signatory
accountant
Deloitte Touche Tohmatsu Registered
PIE Auditor under the Accounting and
Financial Reporting Council Ordinance
35/F, One Pacific Place, 88 Queensway,
Hong Kong, the PRC
Zhu Huaizhong
Accounting firm
engaged by the
Company
(United Kingdom)
Name
Office address
Name of the
signatory
accountant
Deloitte Touche Tohmatsu
Certified Public Accountants LLP
30/F, 222 Yan An Road East,
Huangpu District, Shanghai, the PRC
Hu Xiaojun
(II) Legal Advisors
Legal advisor engaged
by the Company
(domestic)
Name
Office address
King & Wood Mallesons
18/F, East Tower, World Financial Center
1 Middle East 3rd Ring Road, Chaoyang
District, Beijing, the PRC
Legal advisor engaged
by the Company
(overseas)
Name
Office address
Clifford Chance
27/F, Jardine House, 1 Connaught Place,
Central, Hong Kong, the PRC
(III) Share Registrars
Share registrar
for A Share
Name
Office address
China Securities Depository and Clearing
Corporation Limited, Shanghai Branch
No. 188 South Yanggao Road, Pudong
New Area, Shanghai, the PRC
Share registrar
for H Share
Name
Office address
Computershare Hong Kong Investor
Services Limited
Shops 1712-1716, 17/F, Hopewell Center,
183 Queen’s Road East, Wanchai,
Hong Kong, the PRC
361
IV.
INFORMATION DISCLOSURES INDEX
1.
During the Reporting Period, the Company disclosed the following matters on China
Securities Journal, Shanghai Securities News, Securities Times and Securities Daily and
on the website of the Shanghai Stock Exchange (www.sse.com.cn):
No.
Date
Announcement
1
2024-01-05
H Share Announcement of HTSC – Monthly Return of Equity Issuer on
Movements in Securities for the month ended December 31, 2023
2
2024-01-10
Announcement by Huatai Securities Co., Ltd. in relation to
Implementation of the Cancellation of the Repurchased A Shares
3
2024-01-11
H Share Announcement of HTSC (Next Day Disclosure Return)
4
2024-01-23
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
5
2024-01-26
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
6
2024-01-27
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
7
2024-01-30
Announcement by Huatai Securities Co., Ltd. on Change of General
Manager of Huatai Securities (Shanghai) Asset Management Co., Ltd.
8
2024-02-02
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
9
2024-02-03
Announcement by Huatai Securities Co., Ltd. on Completion of the
Change in Industrial and Commercial Registration of Registered
Capital and the Amendments to the Articles of Association, Articles
of Association of Huatai Securities Co., Ltd. (Revised in 2024),
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
10
2024-02-06
H Share Announcement of HTSC – Monthly Return of Equity Issuer on
Movements in Securities for the month ended January 31, 2024
11
2024-02-07
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
12
2024-02-08
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
13
2024-02-09
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
362
No.
Date
Announcement
14
2024-02-19
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
15
2024-02-29
Announcement by Huatai Securities Co., Ltd. on Appointment of
General Manager of Huatai Securities (Shanghai) Asset Management
Co., Ltd.
16
2024-03-06
H Share Announcement of HTSC – Monthly Return of Equity Issuer on
Movements in Securities for the month ended February 29, 2024
17
2024-03-16
Announcement by Huatai Securities Co., Ltd. on Change of Chairman
of Jiangsu Equity Exchange Co., Ltd.
18
2024-03-19
H Share Announcement of HTSC (Date of Board Meeting)
19
2024-03-20
Announcement by Huatai Securities Co., Ltd. on Obtaining Approval
by the CSRC for the Registration of Public Issuance of Corporate
Bonds to Professional Investors
20
2024-03-21
Announcement by Huatai Securities Co., Ltd. on the Briefing on the
Annual Results of 2023
21
2024-03-29
2023 Annual Report of Huatai Securities Co., Ltd., 2023 Annual
Report Summary of Huatai Securities Co., Ltd., 2023 Corporate Social
Responsibility Report of Huatai Securities Co., Ltd., Announcement
by Huatai Securities Co., Ltd. on the Resolutions of the Seventh
Meeting of the Sixth Session of the Board, Announcement by Huatai
Securities Co., Ltd. on the Resolutions of the Sixth Meeting of the
Sixth Session of the Supervisory Committee, Announcement by Huatai
Securities Co., Ltd. on Re-appointment of the Accounting Firms,
Announcement on Annual Profit Distribution Plan of Huatai Securities
Co., Ltd. for 2023, Announcement by Huatai Securities Co., Ltd.
on Estimated Ordinary Transactions with Related Parties for 2024,
Report on Performance of Duties by Independent Directors of Huatai
Securities Co., Ltd. for 2023, Report on Performance of Duties by the
Audit Committee of the Board of Huatai Securities Co., Ltd. for 2023,
Annual Internal Control Evaluation Report of Huatai Securities Co.,
Ltd. for 2023, Special Opinions from the Board of Huatai Securities
Co., Ltd. on the Independence of Independent Directors, Evaluation
Report on Performance of Duties by the Annual Audit Accounting
Firm for 2023 of Huatai Securities Co., Ltd., Report on Performance of
Supervisory Duties by the Annual Audit Accounting Firm for 2023 of
the Audit Committee of the Board of Huatai Securities Co., Ltd., 2023
Financial Statements and Audit Report of Huatai Securities Co., Ltd.,
Annual Internal Control Audit Report of Huatai Securities Co., Ltd. in
2023, Special Explanation of Huatai Securities Co., Ltd. on Occupation
of Non-operating Funds and Transaction of Other Associated Funds
for 2023, System regarding Insider Registration and Management and
Confidentiality of Huatai Securities Co., Ltd. (Revised in 2024)
363
No.
Date
Announcement
22
2024-04-03
H Share Announcement of HTSC – Monthly Return of Equity Issuer on
Movements in Securities for the month ended March 31, 2024
23
2024-04-13
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the
Eighth Meeting of the Sixth Session of the Board, Announcement by
Huatai Securities Co., Ltd. on the Resolutions of the Seventh Meeting
of the Sixth Session of the Supervisory Committee, Announcement by
Huatai Securities Co., Ltd. On Fulfilment of Conditions for Release
from Selling Restriction of the Second Lock-up Period under the
Restricted Share Incentive Scheme of A Shares, Announcement by
Huatai Securities Co., Ltd. on Repurchase and Cancellation of Part
of the Restricted A Shares, Legal Opinions from Beijing King &
Wood Mallesons (Nanjing) Law Firm on Fulfilment of Conditions for
Release from Selling Restriction of the Second Unlocking Period and
Repurchase and Cancellation of Part of the Restricted Shares under the
Restricted Share Incentive Scheme of A Shares of Huatai Securities
Co., Ltd.
24
2024-04-18
H Share Announcement of HTSC (Date of Board Meeting)
25
2024-04-26
Announcement by Huatai Securities Co., Ltd. on the Disposal of the
Entire Equity Interests Held in AssetMark Financial Holdings, Inc. (a
Holding Subsidiary in the United States), Announcement by Huatai
Securities Co., Ltd. on the Resolutions of the Ninth Meeting of the
Sixth Session of the Board
26
2024-04-30
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the
Tenth Meeting of the Sixth Session of the Board, Announcement by
Huatai Securities Co., Ltd. on the Resolutions of the Eighth Meeting
of the Sixth Session of the Supervisory Committee, First Quarterly
Report of 2024 of Huatai Securities Co., Ltd., Announcement by Huatai
Securities Co., Ltd. on the Resignation of Independent Non-executive
Director
27
2024-05-08
H Share Announcement of HTSC – Monthly Return of Equity Issuer on
Movements in Securities for the month ended April 30, 2024
28
2024-05-10
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
364
No.
Date
Announcement
29
2024-05-11
Announcement by Huatai Securities Co., Ltd. on Release from Selling
Restriction of the Second Lock-up Period under the Restricted Share
Incentive Scheme of A Shares and Listing
30
2024-05-13
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
31
2024-05-18
Notice of Convening 2023 Annual General Meeting and 2024 First
A Share Class Meeting by Huatai Securities Co., Ltd., Documents of
2023 Annual General Meeting, 2024 First A Share Class Meeting, 2024
First H Share Class Meeting of Huatai Securities Co., Ltd., Statement
and Undertaking of Nominator of Independent Directors of Huatai
Securities Co., Ltd., Statement and Undertaking of Candidate for
Independent Directors of Huatai Securities Co., Ltd., Review Opinions
from Nomination Committee of the Board of Huatai Securities Co.,
Ltd. on Nomination of Candidates for Independent Non-executive
Directors of the Sixth Session of the Board
32
2024-06-06
H Share Announcement of HTSC – Monthly Return of Equity Issuer on
Movements in Securities for the month ended May 31, 2024
33
2024-06-07
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
34
2024-06-12
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance According to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
35
2024-06-21
Announcement by Huatai Securities Co., Ltd. on the Resolutions of
2023 Annual General Meeting, 2024 First A Share Class Meeting and
2024 First H Share Class Meeting, Legal Opinions from King & Wood
Mallesons on 2023 Annual General Meeting, 2024 First A Share Class
Meeting and 2024 First H Share Class Meeting of Huatai Securities
Co., Ltd., Announcement by Huatai Securities Co., Ltd. on Notice to
Creditors Regarding the Repurchase and Cancellation of Part of the
Restricted A Shares to Reduce Registered Capital, Announcement by
Huatai Securities Co., Ltd. on Approval of Qualification as Director,
Announcement by Huatai Securities Co., Ltd. on Approval of
Qualification as Supervisor, Announcement by Huatai Securities Co.,
Ltd. On the Resolutions of the Eleventh Meeting of the Sixth Session
of the Board, 2024 Action Plan of “Corporate Value and Return
Enhancement” of Huatai Securities Co., Ltd.
365
No.
Date
Announcement
36
2024-07-05
H Share Announcement of HTSC – Monthly Return of Equity Issuer on
Movements in Securities for the month ended June 30, 2024
37
2024-07-12
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance according to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
38
2024-07-16
Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-
owned Subsidiary Conducting Issuance according to Medium-term
Notes Plan and with Wholly-owned Subsidiary Providing Guarantee
39
2024-08-06
H Share Announcement of HTSC – Monthly Return of Equity Issuer on
Movements in Securities for the month ended July 31, 2024
40
2024-08-09
Announcement by Huatai Securities Co., Ltd. on Implementation of
Equity Distribution for 2023
41
2024-08-10
Announcement by Huatai Securities Co., Ltd. on Obtaining Approval
by the CSRC for the Registration of Public Issuance of Subordinated
Corporate Bonds to Professional Investors
42
2024-08-21
H Share Announcement of HTSC (Date of Board Meeting)
43
2024-08-23
Announcement by Huatai Securities Co., Ltd. on the Briefing on the
Interim Results of 2024
44
2024-08-31
2024 Interim Report of Huatai Securities Co., Ltd., 2024 Interim
Report Summary of Huatai Securities Co., Ltd., Announcement on
Interim Profit Distribution Plan of Huatai Securities Co., Ltd. for 2024,
Announcement by Huatai Securities Co., Ltd. on Adjustment to the
Repurchase Price Applicable to the Restricted A Shares, Announcement
by Huatai Securities Co., Ltd. on the Resolutions of the Twelfth
Meeting of the Sixth Session of the Board, Announcement by Huatai
Securities Co., Ltd. on the Resolutions of the Ninth Meeting of the
Sixth Session of the Supervisory Committee, Legal Opinions from
Beijing King & Wood Mallesons (Nanjing) Law Firm on Adjustment to
the Repurchase Price under the Restricted Share Incentive Scheme of A
Shares of Huatai Securities Co., Ltd.
45
2024-09-06
H Share Announcement of HTSC – Monthly Return of Equity Issuer
on Movements in Securities for the month ended August 31, 2024,
Announcement by Huatai Securities Co., Ltd. on the Completion of
Disposal of all the Shares Held in AssetMark Financial Holdings, Inc.
(a Holding Subsidiary in the United States)
366
No.
Date
Announcement
46
2024-09-14
Announcement in relation to Implementation of Repurchase and
Cancellation of Part of the Restricted A Shares of Huatai Securities Co.,
Ltd., Legal Opinions from Beijing King & Wood Mallesons (Nanjing)
Law Firm on Relevant Matters on Repurchase and Cancellation of Part
of the Restricted Shares under the Restricted Share Incentive Scheme
of A Shares of Huatai Securities Co., Ltd.
47
2024-09-21
H Share Announcement of HTSC (Next Day Disclosure Return)
48
2024-10-08
H Share Announcement of HTSC – Monthly Return of Equity Issuer on
Movements in Securities for the month ended September 30, 2024
49
2024-10-16
Announcement by Huatai Securities Co., Ltd. on Completion of the
Change in Industrial and Commercial Registration of Registered
Capital and the Amendments to the Articles of Association, Articles
of Association of Huatai Securities Co., Ltd. (Revised for the Second
Time in 2024)
50
2024-10-17
Announcement by Huatai Securities Co., Ltd. on Implementation of
Interim Equity Distribution for 2024
51
2024-10-19
H Share Announcement of HTSC (Date of Board Meeting),
Announcement by Huatai Securities Co., Ltd. on Obtaining Approval
by the CSRC for Participation in the Swap Facility Business
52
2024-10-23
Announcement by Huatai Securities Co., Ltd. on the Briefing on the
Third Quarterly Results of 2024
53
2024-10-31
Third Quarterly Report of 2024 of Huatai Securities Co., Ltd.,
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the
Thirteenth Meeting of the Sixth Session of the Board
54
2024-11-06
H Share Announcement of HTSC – Monthly Return of Equity Issuer on
Movements in Securities for the month ended October 31, 2024
55
2024-12-05
H Share Announcement of HTSC – Monthly Return of Equity Issuer on
Movements in Securities for the month ended November 30, 2024
56
2024-12-21
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the
Fourteenth Meeting of the Sixth Session of the Board, Administrative
System of Huatai Securities Co., Ltd. regarding the Shares of the
Company Held by Directors, Supervisors and Senior Management
(Revised in 2024)
367
2.
During the Reporting Period, the Company disclosed the following matters on the
HKEXnews website of HKEX (www.hkexnews.hk):
No.
Date
Announcement
1
2024-01-04
Monthly Return of Equity Issuer on Movements in Securities for the
month ended December 31, 2023
2
2024-01-09
Announcement in relation to Implementation of the Cancellation of the
Repurchased A Shares
3
2024-01-10
Next Day Disclosure Return
4
2024-01-15
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2024
and Delisting for 2021 Corporate Bonds Publicly Issued to Professional
Investors (First tranche) (Type 1)
5
2024-01-22
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
6
2024-01-23
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2021 Subordinated
Bonds Publicly Issued to Professional Investors (First tranche)
7
2024-01-25
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
8
2024-01-26
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
9
2024-01-29
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Change of General Manager of Huatai Securities
(Shanghai) Asset Management Co., Ltd.
10
2024-01-31
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate
Bonds Publicly Issued to Professional Investors (Third tranche)
11
2024-02-01
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
368
No.
Date
Announcement
12
2024-02-02
Announcement on Completion of the Change of Registered Capital and
the Amendments to the Articles of Association, Articles of Association,
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2022 Corporate
Bonds Publicly Issued to Professional Investors (First tranche),
Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment
for 2023 Corporate Bonds Publicly Issued to Professional Investors
(Fourth tranche), Announcement by Huatai Securities Co., Ltd. on
Indirectly Wholly-owned Subsidiary Conducting Issuance According to
Medium-term Notes Plan and with Wholly-owned Subsidiary Providing
Guarantee
13
2024-02-05
Monthly Return of Equity Issuer on Movements in Securities for the
month ended January 31, 2024
14
2024-02-06
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
15
2024-02-07
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
16
2024-02-08
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
17
2024-02-18
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
18
2024-02-20
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate
Bonds Publicly Issued to Professional Investors (Fifth tranche) (Type
1), Announcement by Huatai Securities Co., Ltd. on 2024 Interest
Payment for 2023 Corporate Bonds Publicly Issued to Professional
Investors (Fifth tranche) (Type 2)
19
2024-02-27
Letter to Registered Shareholders and Reply Form – Arrangement of
Electronic Dissemination of Corporate Communications, Letter to Non-
registered Shareholders and Reply Form – Arrangement of Electronic
Dissemination of Corporate Communications
20
2024-02-28
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Appointment of General Manager of Huatai
Securities (Shanghai) Asset Management Co., Ltd.
21
2024-03-05
Monthly Return of Equity Issuer on Movements in Securities for the
month ended February 29, 2024
369
No.
Date
Announcement
22
2024-03-12
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2024
and Delisting for 2023 Short-term Corporate Bonds Publicly Issued to
Professional Investors (Sixth tranche)
23
2024-03-15
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Change of Chairman of Jiangsu Equity
Exchange Co., Ltd.
24
2024-03-18
Date of Board Meeting
25
2024-03-19
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Obtaining Approval by the CSRC for the
Registration of Public Issuance of Corporate Bonds to Professional
Investors
26
2024-03-20
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on the Briefing on the Annual Results of 2023
27
2024-03-28
Results Announcement for the Year Ended December 31, 2023, Final
Dividend for the Year Ended December 31, 2023, 2023 Corporate
Social Responsibility Report, Overseas Regulatory Announcements –
2023 Annual Report of Huatai Securities Co., Ltd., 2023 Annual Report
Summary of Huatai Securities Co., Ltd., Announcement by Huatai
Securities Co., Ltd. on the Resolutions of the Seventh Meeting of the
Sixth Session of the Board, Announcement by Huatai Securities Co.,
Ltd. on the Resolutions of the Sixth Meeting of the Sixth Session of
the Supervisory Committee, Announcement by Huatai Securities Co.,
Ltd. on Re-appointment of the Accounting Firms, Announcement on
Annual Profit Distribution Plan of Huatai Securities Co., Ltd. for 2023,
Announcement by Huatai Securities Co., Ltd. on Estimated Ordinary
Transactions with Related Parties for 2024, Report on Performance
of Duties by Independent Directors of Huatai Securities Co., Ltd. for
2023, Report on Performance of Duties by the Audit Committee of
the Board of Huatai Securities Co., Ltd. for 2023, Annual Internal
Control Evaluation Report of Huatai Securities Co., Ltd. for 2023,
Special Opinions from the Board of Huatai Securities Co., Ltd. on
the Independence of Independent Directors, Evaluation Report on
Performance of Duties by the Annual Audit Accounting Firm for 2023
of Huatai Securities Co., Ltd., Report on Performance of Supervisory
Duties by the Annual Audit Accounting Firm for 2023 of the Audit
Committee of the Board of Huatai Securities Co., Ltd., 2023 Financial
Statements and Audit Report of Huatai Securities Co., Ltd., Annual
Internal Control Audit Report of Huatai Securities Co., Ltd. in 2023,
Special Explanation of Huatai Securities Co., Ltd. on Occupation of
Non-operating Funds and Transaction of Other Associated Funds for
2023, System regarding Insider Registration and Management and
Confidentiality of Huatai Securities Co., Ltd. (Revised in 2024)
370
No.
Date
Announcement
28
2024-04-02
Monthly Return of Equity Issuer on Movements in Securities for the
month ended March 31, 2024
29
2024-04-12
Announcement in relation to Repurchase and Cancellation of Part of
the Restricted A Shares, Overseas Regulatory Announcements – Legal
Opinions from Beijing King & Wood Mallesons (Nanjing) Law Firm
on Fulfilment of Conditions for Release from Selling Restriction of
the Second Unlocking Period and Repurchase and Cancellation of Part
of the Restricted Shares under the Restricted Share Incentive Scheme
of A Shares of Huatai Securities Co., Ltd., Announcement by Huatai
Securities Co., Ltd. on Fulfilment of Conditions for Release from
Selling Restriction of the Second Lock-up Period under the Restricted
Share Incentive Scheme of A Shares, Announcement by Huatai
Securities Co., Ltd. on the Resolutions of the Seventh Meeting of the
Sixth Session of the Supervisory Committee, Announcement by Huatai
Securities Co., Ltd. on the Resolutions of the Eighth Meeting of the
Sixth Session of the Board
30
2024-04-17
Date of Board Meeting
31
2024-04-22
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2024
and Delisting for 2021 Corporate Bonds Publicly Issued to Professional
Investors (Second tranche), Announcement by Huatai Securities Co.,
Ltd. on 2024 Interest Payment for 2020 Corporate Bonds Publicly
Issued to Qualified Investors (Second tranche)
32
2024-04-25
Discloseable Transaction – Disposal of the Issued Share Capital of
ASSETMARK FINANCIAL HOLDINGS, INC. by Way of Merger,
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on the Resolutions of the Ninth Meeting of the
Sixth Session of the Board
33
2024-04-26
2023 Annual Report, Notification Letter and Request Form to
Registered Shareholders, Notification Letter and Request Form to Non-
registered Holders
34
2024-04-29
First Quarterly Report of 2024, Proposed Change of Independent
Non-executive Director and Proposed Change of Non-employee
Representative Supervisor, Overseas Regulatory Announcements –
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the
Tenth Meeting of the Sixth Session of the Board, Announcement by
Huatai Securities Co., Ltd. on the Resolutions of the Eighth Meeting of
the Sixth Session of the Supervisory Committee
35
2024-04-30
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate
Bonds Publicly Issued to Professional Investors (Sixth tranche) (Type
1), Announcement by Huatai Securities Co., Ltd. on 2024 Interest
Payment for 2023 Corporate Bonds Publicly Issued to Professional
Investors (Sixth tranche) (Type 2)
371
No.
Date
Announcement
36
2024-05-07
Monthly Return of Equity Issuer on Movements in Securities for the
month ended April 30, 2024
37
2024-05-09
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
38
2024-05-10
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on Release from Selling Restriction of the Second
Lock-up Period under the Restricted Share Incentive Scheme of A
Shares and Listing, Announcement by Huatai Securities Co., Ltd. on
2024 Interest Payment for 2021 Corporate Bonds Publicly Issued to
Professional Investors (Third tranche)
39
2024-05-12
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
40
2024-05-14
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2020 Corporate
Bonds Publicly Issued to Qualified Investors (Third tranche)
41
2024-05-17
Notice of 2023 AGM, Notice of the 2024 First H Share Class Meeting,
Circular of 2023 Annual General Meeting, Form of Proxy of Holders
of H Shares for Use at the AGM to be Held on June 20, 2024, Form of
Proxy of Holders of H Shares for Use at the 2024 First H Share Class
Meeting to be Held on June 20, 2024, Notification Letter and Request
Form to Registered Shareholders, Notification Letter and Request
Form to Non-registered Holders, Final Dividend for the Year Ended
December 31, 2023 (Update), Overseas Regulatory Announcements –
Statement and Undertaking of Nominator of Independent Directors of
Huatai Securities Co., Ltd., Statement and Undertaking of Candidate for
Independent Directors of Huatai Securities Co., Ltd., Review Opinions
from Nomination Committee of the Board of Huatai Securities Co.,
Ltd. on Nomination of Candidates for Independent Non-executive
Directors of the Sixth Session of the Board, Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2024
and Delisting for 2021 Corporate Bonds Publicly Issued to Professional
Investors (Fourth tranche) (Type 1), Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2021 Corporate
Bonds Publicly Issued to Professional Investors (Fourth tranche) (Type
2)
372
No.
Date
Announcement
42
2024-06-05
Monthly Return of Equity Issuer on Movements in Securities for the
month ended May 31, 2024
43
2024-06-06
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
44
2024-06-07
Announcement by Huatai Securities Co., Ltd. on Settlement of the
Principal and Interest of 2024 and Delisting for 2021 Corporate Bonds
Publicly Issued to Professional Investors (Fifth tranche) (Type 1)
45
2024-06-11
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
46
2024-06-14
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2024
and Delisting for 2021 Corporate Bonds Publicly Issued to Professional
Investors (Sixth tranche) (Type 1)
47
2024-06-20
Poll Results of 2023 Annual General Meeting, 2024 First A Share
Class Meeting and 2024 First H Share Class Meeting; Distribution
of Final Dividend; Change of Independent Non-Executive Director;
Adjustment to the Composition Plan of the Special Committees of the
Board; and Change of Non-Employee Representative Supervisor, List
of Directors and Their Role and Function, Final Dividend for the Year
Ended December 31, 2023 (Update), 2024 Action Plan of “Corporate
Value and Return Enhancement”, Overseas Regulatory Announcements
– Legal Opinions from King & Wood Mallesons on 2023 Annual
General Meeting, 2024 First A Share Class Meeting and 2024 First
H Share Class Meeting of Huatai Securities Co., Ltd., Announcement
by Huatai Securities Co., Ltd. on Notice to Creditors Regarding the
Repurchase and Cancellation of Part of the Restricted A Shares to
Reduce Registered Capital, Announcement by Huatai Securities Co.,
Ltd. on the Resolutions of the Eleventh Meeting of the Sixth Session of
the Board, Announcement by Huatai Securities Co., Ltd. on Approval
of Qualification as Supervisor, Announcement by Huatai Securities
Co., Ltd. on Approval of Qualification as Director
48
2024-07-02
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2024
and Delisting for 2023 Short-term Corporate Bonds Publicly Issued to
Professional Investors (Fifth tranche)
373
No.
Date
Announcement
49
2024-07-04
Monthly Return of Equity Issuer on Movements in Securities for the
month ended June 30, 2024, Overseas Regulatory Announcement –
Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment
for 2022 Perpetual Subordinated Bonds Publicly Issued to Professional
Investors (Second tranche)
50
2024-07-11
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
51
2024-07-15
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting
Issuance According to Medium-term Notes Plan and with Wholly-
owned Subsidiary Providing Guarantee
52
2024-08-05
Monthly Return of Equity Issuer on Movements in Securities for the
month ended July 31, 2024
53
2024-08-06
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2024
and Delisting for 2022 Corporate Bonds Publicly Issued to Professional
Investors (Second tranche)
54
2024-08-08
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Implementation of Equity Distribution for 2023
55
2024-08-09
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Obtaining Approval by the CSRC for the
Registration of Public Issuance of Subordinated Corporate Bonds to
Professional Investors
56
2024-08-15
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2024
and Delisting for 2022 Corporate Bonds Publicly Issued to Professional
Investors (Third tranche)
57
2024-08-19
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate
Bonds Publicly Issued to Professional Investors (Seventh tranche)
58
2024-08-20
Date of Board Meeting
59
2024-08-22
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on the Briefing on the Interim Results of 2024
60
2024-08-29
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2024
and Delisting for 2021 Corporate Bonds Publicly Issued to Professional
Investors (Seventh tranche) (Type 1), Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2022 Corporate
Bonds Publicly Issued to Professional Investors (Fourth tranche)
374
No.
Date
Announcement
61
2024-08-30
Interim Results Announcement for the Six Months ended June
30, 2024, Announcement on Adjustment to the Repurchase Price
Applicable to the Restricted A Shares, 2024 Interim Profit Distribution,
Interim Dividend for the Six Months ended June 30, 2024, Overseas
Regulatory Announcements – 2024 Interim Report of Huatai Securities
Co., Ltd., 2024 Interim Report Summary of Huatai Securities Co., Ltd.,
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the
Twelfth Meeting of the Sixth Session of the Board, Announcement by
Huatai Securities Co., Ltd. on the Resolutions of the Ninth Meeting of
the Sixth Session of the Supervisory Committee, Legal Opinions from
Beijing King & Wood Mallesons (Nanjing) Law Firm on Adjustment to
the Repurchase Price under the Restricted Share Incentive Scheme of A
Shares of Huatai Securities Co., Ltd.
62
2024-09-02
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2021 Corporate
Bonds Publicly Issued to Professional Investors (Seventh tranche)
(Type 2), Announcement by Huatai Securities Co., Ltd. on 2024
Interest Payment for 2023 Perpetual Subordinated Bonds Publicly
Issued to Professional Investors (First tranche)
63
2024-09-04
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2024
and Delisting for 2023 Short-term Corporate Bonds Publicly Issued to
Professional Investors (Third tranche)
64
2024-09-05
Monthly Return of Equity Issuer on Movements in Securities for the
month ended August 31, 2024, Voluntary Announcement – Completion
of Disposal of All of Shares of AssetMark Financial Holdings, Inc.
65
2024-09-06
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2022 Corporate
Bonds Publicly Issued to Professional Investors (Fifth tranche)
66
2024-09-09
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2021 Perpetual
Subordinated Bonds Publicly Issued to Professional Investors (First
tranche), Announcement by Huatai Securities Co., Ltd. on Settlement
of the Principal and Interest of 2024 and Delisting for 2023 Short-
term Corporate Bonds Publicly Issued to Professional Investors (Fourth
tranche)
67
2024-09-12
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate
Bonds Publicly Issued to Professional Investors (Eighth tranche) (Type
1)
375
No.
Date
Announcement
68
2024-09-13
Announcement in relation to Implementation of Repurchase and
Cancellation of Part of the Restricted A Shares of Huatai Securities
Co., Ltd., Overseas Regulatory Announcement – Legal Opinions from
Beijing King & Wood Mallesons (Nanjing) Law Firm on Relevant
Matters on Repurchase and Cancellation of Part of the Restricted
Shares under the Restricted Share Incentive Scheme of A Shares of
Huatai Securities Co., Ltd.
69
2024-09-20
Next Day Disclosure Return
70
2024-09-27
2024 Interim Report, Notification Letter and Request Form to
Registered Shareholders, Notification Letter and Request Form to Non-
Registered Holders
71
2024-10-07
Monthly Return of Equity Issuer on Movements in Securities for the
month ended September 30, 2024
72
2024-10-09
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2024
and Delisting for 2021 Corporate Bonds Publicly Issued to Professional
Investors (Eighth tranche) (Type 1), Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate
Bonds Publicly Issued to Professional Investors (Ninth tranche) (Type
1), Announcement by Huatai Securities Co., Ltd. on 2024 Interest
Payment for 2023 Corporate Bonds Publicly Issued to Professional
Investors (Ninth tranche) (Type 2)
73
2024-10-14
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2021 Corporate
Bonds Publicly Issued to Professional Investors (Eighth tranche) (Type
2), Announcement by Huatai Securities Co., Ltd. on 2024 Interest
Payment for 2022 Perpetual Subordinated Bonds Publicly Issued
to Professional Investors (Third tranche), Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2023 Perpetual
Subordinated Bonds Publicly Issued to Professional Investors (Second
tranche)
74
2024-10-15
Announcement on Completion of the Change of Registered Capital
and the Amendment to the Articles of Association, the Articles of
Association
376
No.
Date
Announcement
75
2024-10-16
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on Implementation of Interim Equity Distribution
for 2024, Announcement on Coupon Rate of 2024 Short-term Corporate
Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional
Investors (First tranche), Announcement by Huatai Securities Co., Ltd.
on Settlement of the Principal and Interest of 2024 and Delisting for
2021 Corporate Bonds Publicly Issued to Professional Investors (Ninth
tranche) (Type 1)
76
2024-10-18
Date of Board Meeting, Overseas Regulatory Announcements –
Announcement by Huatai Securities Co., Ltd. on Obtaining Approval
by the CSRC for Participation in the Swap Facility Business,
Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment
for 2021 Corporate Bonds Publicly Issued to Professional Investors
(Ninth tranche) (Type 2), Announcement on Issuance Results for 2024
Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (First tranche)
77
2024-10-21
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2021 Perpetual
Subordinated Bonds Publicly Issued to Professional Investors (Second
tranche)
78
2024-10-22
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on the Briefing on the Third Quarterly Results of
2024
79
2024-10-30
Third Quarterly Report of 2024, Overseas Regulatory Announcements –
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the
Thirteenth Meeting of the Sixth Session of the Board, Announcement
by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023
Corporate Bonds Publicly Issued to Professional Investors (Tenth
tranche) (Type 1), Announcement by Huatai Securities Co., Ltd. on
2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to
Professional Investors (Tenth tranche) (Type 2)
80
2024-11-05
Monthly Return of Equity Issuer on Movements in Securities for the
month ended October 31, 2024
81
2024-11-06
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2020 Subordinated
Bonds Publicly Issued to Professional Investors (First tranche)
82
2024-11-11
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2021 Perpetual
Subordinated Bonds Publicly Issued to Professional Investors (Third
tranche)
377
No.
Date
Announcement
83
2024-11-12
Overseas Regulatory Announcements – Announcement on Coupon
Rate of 2024 Short-term Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (Second tranche),
Announcement by Huatai Securities Co., Ltd. on Settlement of the
Principal and Interest of 2024 and Delisting for 2022 Corporate Bonds
Publicly Issued to Professional Investors (Sixth tranche) (Type 1)
84
2024-11-13
Overseas Regulatory Announcement – Announcement on Issuance
Results for 2024 Short-term Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (Second tranche)
85
2024-11-14
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2022 Corporate
Bonds Publicly Issued to Professional Investors (Sixth tranche) (Type
2)
86
2024-11-20
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate
Bonds Non-publicly Issued to Professional Investors (First tranche)
(Type 2)
87
2024-11-22
Overseas Regulatory Announcement – Announcement on Coupon Rate
of 2024 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (First tranche)
88
2024-11-26
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2024
and Delisting for 2022 Corporate Bonds Publicly Issued to Professional
Investors (Seventh tranche) (Type 1), Announcement on Issuance
Results for 2024 Perpetual Subordinated Bonds of Huatai Securities
Co., Ltd. Publicly Issued to Professional Investors (First tranche)
89
2024-12-04
Monthly Return of Equity Issuer on Movements in Securities for the
month ended November 30, 2024
90
2024-12-05
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on 2024 Interest Payment for 2022 Corporate
Bonds Publicly Issued to Professional Investors (Eighth tranche) (Type
1), Announcement by Huatai Securities Co., Ltd. on 2024 Interest
Payment for 2022 Corporate Bonds Publicly Issued to Professional
Investors (Eighth tranche) (Type 2)
91
2024-12-06
Overseas Regulatory Announcement – Announcement on Coupon Rate
of 2024 Short-term Corporate Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Third tranche)
378
No.
Date
Announcement
92
2024-12-09
Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment
for 2023 Corporate Bonds Non-publicly Issued to Professional
Investors (Second tranche) (Type 2)
93
2024-12-10
Announcement on Issuance Results for 2024 Short-term Corporate
Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional
Investors (Third tranche)
94
2024-12-12
Announcement by Huatai Securities Co., Ltd. on Settlement of the
Principal and Interest of 2024 and Delisting for 2022 Corporate Bonds
Publicly Issued to Professional Investors (Ninth tranche) (Type 1)
95
2024-12-20
Overseas Regulatory Announcements – Announcement by Huatai
Securities Co., Ltd. on the Resolutions of the Fourteenth Meeting of the
Sixth Session of the Board, Administrative System of Huatai Securities
Co., Ltd. regarding the Shares of the Company Held by Directors,
Supervisors and Senior Management (Revised in 2024), Announcement
on Coupon Rate of 2024 Short-term Corporate Bonds of Huatai
Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth
tranche)
96
2024-12-24
Overseas Regulatory Announcement – Announcement on Issuance
Results for 2024 Short-term Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (Fourth tranche)
97
2024-12-31
Overseas Regulatory Announcement – Announcement by Huatai
Securities Co., Ltd. on Settlement of the Principal and Interest of 2025
and Delisting for 2023 Corporate Bonds Publicly Issued to Professional
Investors (First tranche)
379
3.
During the Reporting Period, the Company disclosed the following matters on the
website of the London Stock Exchange (www.londonstockexchange.com):
No.
Date
Announcement
1
2024-01-09
IMPLEMENTATION OF CANCELLATION OF PART OF A SHARES
2
2024-02-02
COMPLETION OF THE CHANGE OF REGISTERED CAPITAL,
ARTICLES OF ASSOCIATION
3
2024-03-28
2023 ANNUAL FINANCIAL REPORT, 2023 CORPORATE SOCIAL
RESPONSIBILITY REPORT
4
2024-04-12
REPURCHASE AND CANCELLATION OF PART OF A SHARES
5
2024-04-25
DISPOSAL OF THE ISSUED SHARE CAPITAL OF ASSETMARK
6
2024-04-26
2023 ANNUAL REPORT
7
2024-04-29
FIRST QUARTERLY REPORT OF 2024, PROPOSED CHANGE OF
DIRECTOR AND SUPERVISOR
8
2024-05-17
NOTICE OF AGM AND 2024 FIRST A SHARE CLASS MEETING
9
2024-06-20
RESULTS OF AGM AND A SHARE & H SHARE CLASS MEETING,
LIST OF DIRECTORS AND THEIR ROLE AND FUNCTION
10
2024-08-08
IMPLEMENTATION OF EQUITY DISTRIBUTION FOR 2023
11
2024-08-30
INTERIM RESULTS ANNOUNCEMENT, ADJUSTMENT TO THE
REPURCHASE PRICE OF A SHARES, 2024 INTERIM PROFIT
DISTRIBUTION
12
2024-09-05
COMPLETION OF DISPOSAL OF ASSETMARK
13
2024-09-13
REPURCHASE AND CANCELLATION OF PART OF A SHARES
14
2024-09-27
2024 INTERIM REPORT
15
2024-10-15
COMPLETION OF THE CHANGE OF REGISTERED CAPITAL,
ARTICLES OF ASSOCIATION
16
2024-10-16
IMPLEMENTATION OF 2024 INTERIM EQUITY DISTRIBUTION
17
2024-10-30
THIRD QUARTERLY REPORT OF 2024
HUATAI SECURITIES CO., LTD.
(A joint stock company incorporated in the
People's Republic of China with limited liability)
Independent Auditor's Report and Consolidated
Financial Statements
For the year ended 31 December 2024
(Prepared under International Financial
Reporting Standards)
HUATAI SECURITIES CO., LTD.
INDEPENDENT AUDITOR'S REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CONTENTS
PAGE(S)
INDEPENDENT AUDITOR'S REPORT
1 - 7
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
8
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
9
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
10 - 12
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
13 - 14
CONSOLIDATED STATEMENT OF CASH FLOWS
15 - 17
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
18 - 193
- 1 -
DTT(A)(25)I00005
INDEPENDENT AUDITOR'S REPORT
TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD.
(A joint stock company incorporated in the People's Republic of China with limited liability)
Opinion
We have audited the consolidated financial statements of Huatai Securities Co., Ltd. (the "Company")
and its subsidiaries (collectively referred to as the "Group") set out on pages 8 to 193, which
comprise the consolidated statement of financial position as at 31 December 2024, the
consolidated
statement of profit or loss, the consolidated statement of profit or loss and other comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for
the year then ended, and notes to the consolidated financial statements, including material
accounting policy information and other explanatory information.
In our opinion, the consolidated financial statements give a true and fair view of the consolidated
financial position of the Group as at 31 December 2024, and of its consolidated financial
performance and its consolidated cash flows for the year then ended in accordance with International
Financial Reporting Standards ("IFRS Accounting Standards") issued by the International
Accounting Standards Board ("IASB") and have been properly prepared in compliance with the
disclosure requirements of the Hong Kong Companies Ordinance.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing ("ISAs"). Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Consolidated Financial Statement
s
section of our report. We are independent of the
Group in accordance with the International Ethics Standards Board for Accountants' International
Code of Ethics for Professional Accountants (including International Independence Standards)
("IESBA Code"), and we have fulfilled our other ethical responsibilities in accordance with the
IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
- 2 -
DTT(A)(25)I00005
INDEPENDENT AUDITOR'S REPORT - continued
TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. - continued
(A joint stock company
incorporated
in the People's Republic of China with limited liability)
Key Audit Matters
- continued
Valuations of financial instruments classified under the fair value hierarchy as level 3
The Key Audit Matter
How our audit addressed the key audit
matter
The fair value of the Group's financial
instruments is mainly based on active market
quoted prices or valuation techniques. For level
3
financial
instruments,
including
debt
instruments,
unlisted
equity
investments,
private equity funds and over-the-counter
derivative financial instruments, the Group uses
valuation techniques to measure fair values.
As disclosed in Note 62 to the consolidated
financial statements, as at 31 December 2024,
the fair value of the Group's level 3 financial
assets and financial liabilities amounted to
RMB 9,239 million and RMB 10,632 million,
respectively.
We identified valuation of level 3 financial
instruments as a key audit matter because the
amount involved was significant and the
selection
of
valuation
techniques
and
determination of unobservable inputs required
significant judgements and estimations.
Our procedures in respect of this key audit
matter included the following:
•
Understanding and assessing the process
and key controls relating to the valuation of
level 3 financial instruments and testing the
operating effectiveness of these controls;
•
Evaluating the appropriateness of the
valuation models used by the management
for level 3 financial instruments;
•
On a sample basis, reading the investment
agreements to understand the relevant
investment
terms,
identifying
any
conditions
that
were
relevant
to
the
valuations of these financial instruments
and
assessing
the
application
in
the
valuation;
•
Evaluating,
on
a
sample
basis,
the
appropriateness
of
the
significant
unobservable and observable inputs which
were used for measuring the fair value of
level 3 financial instruments;
•
Where
appropriate,
performing
independent valuations of level 3 financial
instruments, on a sample basis,
and
comparing
these
valuations
with
the
Group's valuations, with the involvement of
our valuation experts.
- 3 -
DTT(A)(25)I00005
INDEPENDENT AUDITOR'S REPORT - continued
TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. - continued
(A joint stock company incorporated in the People's Republic of China with limited liability)
Key Audit Matters
- continued
Measurement of expected credit losses ("ECL") for margin accounts receivable and
securities-backed lendings
The Key Audit Matter
How our audit addressed the key audit
matter
The Group uses an expected credit loss ("ECL")
model to determine the loss allowance for
margin accounts receivable and securities-
backed lendings.
The
management
exercised
significant
judgements and estimations in its assessment of
ECL allowance of margin accounts receivable
and securities-backed lendings. They included
the determination of staging of the relevant
financial assets whether the credit risk had
increased significantly and credit impairment
events had occurred; the determination of key
parameters used in the ECL model, including
loss rate, exposure at default and forward-
looking information for Stage 1 and 2 financial
assets; the determination of recoverable amount
in respect of Stage 3 financial assets based on
value of collateral and repayment ability of
borrowers.
As at 31 December 2024, the Group held
margin accounts receivable of RMB134,312
million,
less
impairment
allowance
of
RMB1,766 million as disclosed in Note 37 to
the consolidated financial statements and
securities-backed
lendings
of
RMB3,539
million, less impairment allowance of RMB488
million as disclosed in Note 30 to the
consolidated financial statements.
We identified the measurement of ECL for the
Group's
margin
accounts
receivable
and
securities-backed lendings as a key audit matter
due to the significance of these assets to the
Group's consolidated financial statements and
the significant management estimations and
judgments required in the measurement.
Our procedures in respect of this key audit
matter included the following:
•
Understanding and assessing the process
and
key
controls
relating
to
the
measurement of ECL for margin accounts
receivable and securities-backed lendings
and testing the operating effectiveness of
these controls;
•
Evaluating the appropriateness of the ECL
model,
the
critical
assumptions
and
parameters used in the model with the
involvement of our internal experts;
•
Evaluating the appropriateness of the
criteria for significant increase in credit risk
("SICR") and financial assets that were
credit impaired determined by management
and, on a sample basis, testing the
application of such criteria to individual
margin accounts receivable and securities-
backed lendings;
•
Examining the correctness of major inputs
to the ECL model for selected samples,
including exposure at default and loss rate,
and the mathematical accuracy of the
calculation of ECL;
•
For credit-impaired financial assets, on a
sample basis, assessing the reasonableness
of
expected
credit
losses
made
by
management based on repayment ability of
borrowers, value of collateral and other
credit enhancements, as appropriate.
- 4 -
DTT(A)(25)I00005
INDEPENDENT AUDITOR'S REPORT - continued
TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. - continued
(A joint stock company incorporated in the People's Republic of China with limited liability)
Key Audit Matters
- continued
Consolidation of structured entities
The Key Audit Matter
How our audit addressed the key audit
matter
The Group held interests as investor and/or
acted as investment manager in various
structured entities including asset management
schemes, investment funds and partnerships.
As disclosed in Note 57, as at 31 December
2024, the total assets of the consolidated
structured entities amounted to RMB 35,723
million
and
the
total
assets
of
the
unconsolidated structured entities sponsored by
the Group amounted to RMB 621,057 million,
respectively.
The Group consolidated the structured entities
which it controlled. The principle of control
sets out the following three elements of control:
(a) power over the investee; (b) exposure, or
rights, to variable returns from involvement
with the investee; and (c) the ability to use
power over the investee to affect the amount of
the investor's returns. The Group considered its
power, arising from the rights entitled directly
or indirectly, over the structured entities, and
assessed
whether
the
combination
of
investments
it
held
together
with
its
remuneration created exposure to variability of
returns from the structured entities that are of
such significance that it indicated the Group
controlled the structured entities and should
consolidated these structured entities.
We identified consolidation of structured
entities as a key audit matter due to the
significant
judgments
applied
by
the
management
in
determining
whether
a
structured
entity
was
required
to
be
consolidated by the Group and the significance
of the impact arising from consolidating these
structured entities to the Group's consolidated
financial statements as a whole.
Our procedures in respect of this key audit
matter included the following:
•
Understanding and assessing the process
and
key
controls
relating
to
the
consolidation of structured entities and
testing the operating effectiveness of these
controls;
•
Selecting samples to perform the following
audit procedures:
-
Checking agreements relating to the
structured entity and understanding the
purpose of its set up; assessing the
appropriateness
of
the
Group's
judgement on the power the Group had
over the structured entity according to
the Group's rights and obligations under
different transaction structures and its
involvement with the structured entity;
-
verifying the analysis on the Group's
variable return which included, but was
not limited to, fixed management fees
and performance fees obtained through
acting as asset manager, as well as the
returns
obtained
from
holding
an
interest in a structured entity;
-
analysing the scope of the Group's
decision-making
power
over
the
structured entity, the substantive rights
held by other participants, the level of
remuneration obtained from providing
asset management services and the risk
of variable return borne by holding
other interests in the structured entity
and, checking the Group's analysis on
the
magnitude
and
variability
of
variable return, assessing whether the
Group acts as principal or agent in the
structured entities;
-
assessing the management's judgment
on the consolidation of structured
entities through carrying out the above
procedures.
- 5 -
DTT(A)(25)I00005
INDEPENDENT AUDITOR'S REPORT
–
continued
TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. - continued
(A joint stock company incorporated in the People's Republic of China with limited liability)
Other Information
The directors of the Company are responsible for the other information. The other information
comprises the information included in the annual report, but does not include the consolidated
financial statements and our auditor's report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we are required to report that fact. We
have nothing to report in this regard.
Responsibilities of Directors and Those Charged with Governance for the Consolidated
Financial Statements
The directors of the Company are responsible for the preparation of the consolidated financial
statements that give a true and fair view in accordance with IFRS Accounting Standards issued by
the IASB and the disclosure requirements of the Hong Kong Companies Ordinance, and for such
internal control as the directors determine is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible for assessing the
Group's ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to
liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting
process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor's report that includes our opinion solely to you, as a body, in accordance with our agreed
terms of engagement, and for no other purpose. We do not assume responsibility towards or accept
liability to any other person for the contents of this report. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect
a material misstatement when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial
statements.
- 6 -
DTT(A)(25)I00005
INDEPENDENT AUDITOR'S REPORT - continued
TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. - continued
(A joint stock company incorporated in the People's Republic of China with limited liability)
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
- continued
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain
professional skepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group's internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors' use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group's ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor's report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor's report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
•
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business units within the Group as a basis for
forming an opinion on the group financial statements. We are responsible for the direction,
supervision and review of the audit work performed for purposes of the group audit. We
remain solely responsible for our audit opinion.
- 7 -
DTT(A)(25)I00005
INDEPENDENT AUDITOR'S REPORT - continued
TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. - continued
(A joint stock company incorporated in the People's Republic of China with limited liability)
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
- continued
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor's report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Deloitte Touche Tohmatsu Certified Public Accountants LLP
Shanghai, People's Republic of China
28 March 2025
HUATAI SECURITIES CO., LTD.
- 8 -
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
Year ended 31 December
Notes
2024
2023
Revenue
Fee and commission income
4
Interest income
5
Net investment gains
6
Other income and gains
7
Total revenue, gains and other income
Fee and commission expenses
8
(4,310,977 )
(4,328,290 )
Interest expenses
9
(10,856,424 )
(13,662,909 )
Staff costs
10
(10,074,621 )
(9,371,842 )
Depreciation and amortisation expenses
11
(1,774,611 )
(1,856,409 )
Tax and surcharges
12
(179,417 )
(187,664 )
Other operating expenses
13
(13,844,777 )
(11,644,373 )
Impairment losses under expected credit
loss model, net of reversal
14
(246,269 )
Total expenses
(41,287,096 )
(40,640,541 )
Operating profit
Share of profit of associates and joint
ventures
Profit before income tax
Income tax expense
15
(1,168,404 )
Profit for the year
Attributable to:
Shareholders of the Company
Non-controlling interests
Earnings per share (Expressed in Renminbi
per share)
19
- Basic
- Diluted
The notes on pages 18 to 193 form part of these consolidated financial statements.
HUATAI SECURITIES CO., LTD.
- 9 -
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
Year ended 31 December
Note
2024
2023
Profit for the year
Other comprehensive income/(expense) for the year
Items that will not be reclassified to profit or loss:
Equity instruments at fair value through other
comprehensive (expense) / income
- Net change in fair value
(15 )
- Income tax impact
(4,760 )
Items that may be reclassified subsequently to
profit or loss:
Net loss from debt instruments at fair value through
other comprehensive income
Fair value gain on hedging instruments designated in
cash flow hedges
(83,916 )
(3,571 )
Share of other comprehensive income of associates
and joint ventures
(40,580 )
Exchange differences on translation of financial
statements in foreign currencies
Income tax impact
(12,120 )
(22,779 )
Other comprehensive income for the year, net of
income tax
18
Total comprehensive income for the year
Attributable to:
Shareholders of the Company
Non-controlling interests
Total
The notes on pages 18 to 193 form part of these consolidated financial statements.
HUATAI SECURITIES CO., LTD.
- 10 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
As at 31 December
Notes
2024
2023
Non-current assets
Property and equipment
20
Investment properties
21
Goodwill
22
Land-use rights and other intangible assets
23
Interests in associates
25
Interests in joint ventures
26
Debt instruments at amortised cost
27
Financial assets held under resale agreements
30
Debt instruments at fair value through other
comprehensive income
28
Equity instruments at fair value through other
comprehensive income
29
Financial assets at fair value through profit or
loss
31
Refundable deposits
32
Deferred tax assets
33
Other non-current assets
34
Total non-current assets
Current assets
Accounts receivable
35
Other receivables, prepayments and other
current assets
36
Margin accounts receivable
37
Debt instruments at amortised cost
27
Financial assets held under resale agreements
30
Debt instruments at fair value through other
comprehensive income
28
Financial assets at fair value through profit or
loss
31
Derivative financial assets
38
Clearing settlement funds
39
Cash held on behalf of brokerage clients
40
Cash and bank balances
41
Assets classified as held for sale
24(c)
Total current assets
Total assets
HUATAI SECURITIES CO., LTD.
- 11 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - continued
AS AT 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
As at 31 December
Notes
2024
2023
Current liabilities
Short-term bank loans
43
Short-term debt instruments issued
44
Placements from other financial institutions
45
Accounts payable to brokerage clients
46
Employee benefits payable
47
Other payables and accruals
48
Contract liabilities
49
Current tax liabilities
Financial assets sold under repurchase
agreements
50
Financial liabilities at fair value through profit
or loss
51
Derivative financial liabilities
38
Long-term bonds due within one year
52
Liabilities associated with assets classified as
held for sale
24(c)
Total current liabilities
Net current assets
Total assets less current liabilities
Non-current liabilities
Derivative financial liabilities
38
Long-term bonds
53
Long-term bank loans
54
Non-current employee benefits payable
47
Deferred tax liabilities
33
Financial liabilities at fair value through profit
or loss
51
Other payables and accruals
48
Total non-current liabilities
Net assets
HUATAI SECURITIES CO., LTD.
- 12 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - continued
AS AT 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
As at 31 December
Note
2024
2023
Equity
Share capital
55
Other equity instruments
55
Treasury shares
55
(100,545 )
(1,064,173 )
Reserves
55
Retained profits
55
Total equity attributable to shareholders of the
Company
Non-controlling interests
Total equity
The notes on pages 18 to 193 form part of these consolidated financial statements.
Approved and authorised for issue by the board of directors on 28 March 2025.
Zhang Wei
Wang Bing
Chairman of the Board,
Director
Director
HUATAI SECURITIES CO., LTD.
- 13 -
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
Attributable to shareholders of the Company
Reserves
Share
capital
Other
equity
instruments
Treasury
shares
Capital
reserve
Surplus
reserve
General
reserve
Fair value
reserve
Cash flow
hedges
reserve
Translation
reserve
Retained
profits
Total
Non-
controlling
interests
Total equity
(Note 55)
(Note 55)
(Note 55)
(Note 55)
(Note 55)
(Note 55)
(Note 55)
(Note 38)
(Note 55)
(Note 55)
As at 1 January 2024
(1,064,173 )
Changes in equity for 2024
Profit for the year
Other comprehensive income / (expense)
for the year
(83,916 )
(36,471 )
Total comprehensive income / (expense)
for the year
(83,916 )
Issue of perpetual subordinated bonds
(2,158 )
Disposal of subsidiaries
(3,025,855 )
(3,025,855 )
Repurchase and cancellation of shares
(47,361 )
(803,789 )
Equity-settled share-based payments
Appropriation to surplus reserve
(889,075 )
Appropriation to general reserve
(2,026,732 )
Dividends declared to ordinary
shareholders for the year
(5,236,731 )
(5,236,731 )
(57,747 )
(5,294,478 )
Dividends payable to perpetual
subordinated bonds
(935,130 )
(935,130 )
(935,130 )
Others
(34,143 )
(14 )
(28 )
(101 )
(34,286 )
As at 31 December 2024
(100,545 )
(44,844 )
HUATAI SECURITIES CO., LTD.
- 14 -
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - continued
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
Attributable to shareholders of the Company
Reserves
Share
capital
Other
equity
instruments
Treasury
shares
Capital
reserve
Surplus
reserve
General
reserve
Fair value
reserve
Cash flow
hedges
reserve
Translation
reserve
Retained
profits
Total
Non-
controlling
interests
Total equity
(Note 55)
(Note 55)
(Note 55)
(Note 55)
(Note 55)
(Note 55)
(Note 55)
(Note 38)
(Note 55)
(Note 55)
As at 1 January 2023
(1,202,324 )
Adjustments
As at 1 January 2023
(1,202,324 )
Changes in equity for 2023
Profit for the year
Other comprehensive income / (expense)
for the year
(3,571 )
Total comprehensive income / (expense)
for the year
(3,571 )
Issue of perpetual subordinated bonds
(4,087 )
Acquisition of non-controlling interests
(7,534 )
(5,373 )
Equity-settled share-based payments
Appropriation to surplus reserve
(1,046,672 )
Appropriation to general reserve
(2,432,201 )
Dividends declared to ordinary
shareholders for the year
(4,063,223 )
(4,063,223 )
(51,810 )
(4,115,033 )
Dividends payable to perpetual
subordinated bonds
(705,430 )
(705,430 )
(705,430 )
Other comprehensive income that has
been reclassified to retained profits
(1,462 )
Others
(926 )
(1,027,890 )
(1,021,179 )
(977,004 )
As at 31 December 2023
(1,064,173 )
The notes on pages 18 to 193 form part of these consolidated financial statements.
HUATAI SECURITIES CO., LTD.
- 15 -
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
Year ended 31 December
Note
2024
2023
Cash flows from operating activities:
Profit before income tax
Adjustments for:
Interest expenses
Share of profit of associates and joint ventures
(2,353,953 )
(2,584,784 )
Depreciation and amortisation expenses
Impairment losses under expected credit loss model,
net of reversal
(410,946 )
Expenses recognised from equity-settled share-based
payment
Net gains arising from disposal of subsidiaries
(6,335,547 )
Gains on disposal of property and equipment
(2,351 )
(2,019 )
Foreign exchange gains
(197,191 )
(669,375 )
Dividend income and interest income from financial
assets through other comprehensive income and debt
instruments at amortised cost
(1,943,376 )
(1,907,369 )
Net (gains) / losses arising from derecognition of
financial assets at fair value through other
comprehensive income
(101,101 )
Net gains arising from other investments
(10,173 )
Net gains arising from acquisition of investment in an
associate
(239,728 )
Unrealised fair value changes in financial instruments
at fair value through profit or loss
(7,493,050 )
Unrealised fair value changes in derivatives
Operating cash flows before movements in working
capital
Decrease in refundable deposits
Increase in margin accounts receivable
(20,449,188 )
(11,687,710 )
Decrease / (Increase) in accounts receivable, other
receivables and prepayments
(2,407,309 )
(Increase) / decrease in financial assets held under
resale agreements
(3,547,957 )
Decrease / (Increase) in financial instruments at fair
value through profit or loss
(48,987,181 )
Decrease in restricted bank deposits
(Increase) / decrease in cash held on behalf of
brokerage clients
(33,623,986 )
Increase / (decrease) in accounts payable to brokerage
clients
(7,850,363 )
(Decrease) / increase in other payables and accruals
(37,148,066 )
HUATAI SECURITIES CO., LTD.
- 16 -
CONSOLIDATED STATEMENT OF CASH FLOWS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
Year ended 31 December
Note
2024
2023
Cash flows from operating activities: - continued
Increase / (decrease) in employee benefits payable
(1,311,734 )
Decrease in financial assets sold under repurchase
agreements
(23,007,981 )
(61,849 )
(Decrease) / increase in placements from other
financial institutions
(9,415,067 )
Cash generated from / (used in) operations
(19,592,447 )
Income taxes paid
(1,551,541 )
(1,533,277 )
Interest paid
(5,280,239 )
(7,349,829 )
Net cash generated from / (used in) operating
activities
(28,475,553 )
Cash flows from investing activities
Proceeds on disposal of property and equipment
Dividends received from associates
Dividend income and interest income from financial
assets through other comprehensive income and debt
instruments at amortised cost
Proceeds from disposal of financial assets at fair value
through other comprehensive income
Proceeds from disposal of debt instruments at
amortised cost
Purchase of property and equipment, investment
properties, other intangible assets and other non-
current assets
(1,806,042 )
(1,676,304 )
Acquisition of interests in associates
(285,868 )
(1,380,177 )
Divestments of associates, joint ventures and other
investments
Proceeds on disposal of a subsidiary
Purchase of debt instruments at amortised cost
(9,547,511 )
(18,729,293 )
Purchase of financial assets at fair value through other
comprehensive income
(3,318,943 )
(14,044,006 )
Net cash generated from / (used in) investing activities
(6,264,467 )
HUATAI SECURITIES CO., LTD.
- 17 -
CONSOLIDATED STATEMENT OF CASH FLOWS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
Year ended 31 December
Note
2024
2023
Cash flows from financing activities:
Proceeds from issuance of short-term debt instruments
Proceeds from issuance of long-term bonds
Proceeds from issuance of perpetual bonds
Proceeds from bank loans
Repayment of bank loans
(12,019,460 )
(8,124,312 )
Repayment of debt securities issued
(76,217,308 )
(67,858,553 )
Short-term bank loans interest paid
(314,768 )
(545,002 )
Long-term bank loans interest paid
(44,278 )
(53,487 )
Short-term debt instruments interest paid
(1,582,413 )
(5,330,291 )
Long-term bonds interest paid
(4,610,987 )
(4,362,411 )
Dividends paid
(6,280,608 )
(4,769,463 )
Payment of lease liabilities
(623,242 )
(662,201 )
Payment on repurchase and cancellation of shares
(15,348 )
(7,637 )
Acquisition of partial interest of a subsidiary
(5,373 )
Cash received from Restricted Share Incentive
Scheme
Net cash (used in) / generated from financing
activities
42(b)
(59,670,326 )
Net decrease in cash and cash equivalents
(4,355,768 )
(16,778,228 )
Cash and cash equivalents at the beginning of the year
Effect of foreign exchange rate changes
Total cash and cash equivalents at the end of the year
42(a)
The notes on pages 18 to 193 form part of these consolidated financial statements.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 18 -
General information
was approved by the People's Bank of China ("PBOC"), and registered with the Administration
for Industry and Commerce of Jiangsu Province on 9 April 1991, with a registered capital of
RMB10 million. The Company was renamed as Huatai Securities Limited Liability Company
on 21 December 1999 and then renamed as Huatai Securities Co., Ltd. on 7 December 2007 as
The Company publicly issued RMB784,561,275 ordinary shares (the "A shares") in February
2010, and was listed on the Shanghai Stock Exchange on 26 February 2010.
In June 2015, the Company issued RMB1,562,768,800 H shares, which were listed on the main
board of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"). Due
to the issuance and listing of H Shares, the relevant state-owned shareholders transferred
156,276,880 state owned A Shares of the Company, representing 10% of the number of H Shares
issued this time, to the National Council for Social Security Fund of the PRC in the form of H
Shares.
In August 2018, the Company completed the non-public issuance of 1,088,731,200 RMB-
denominated ordinary shares (A Shares) by way of "Non-Public Issuance to Specific Investors".
In June 2019, the Company issued 82,515,000 Global Deposits Receipts (the "GDRs"),
representing 825,150,000 new A shares, and was listed on the London Stock Exchange plc (the
"London Stock Exchange").
From September 2022 to December 2024, the Company completed the repurchase and
cancellation of 49,347,719 restricted A shares, and the Company's registered capital has been
reduced by RMB 49,347,719.
As at 31 December 2024, the Company's registered capital was RMB9,027,302,281 and the
Company has a total of 9,027,302,281 issued shares of RMB1 each.
As at 31 December 2024 , the Company has 27 branches and 248 securities business offices.
Please refer to Note 24 for details of subsidiaries of the Company.
securities underwriting and sponsorship, securities investment advisory, asset management,
agency sale of financial products, intermediary introduction business for the futures companies,
agency sale and custody of securities investment fund, mutual fund management, direct
investment business, alternative investment business, futures brokerage business and other
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 19 -
Material accounting policy information
Statement of compliance
The consolidated financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS Accounting Standards") issued by the International
Accounting Standards Board ("IASB"). In addition, the consolidated financial statements
include applicable disclosures required by the Rules Governing the Listing of Securities on The
Stock Exchange of Hong Kong Limited ("Listing Rules") and by the Hong Kong Companies
Ordinance. A summary of the material accounting policy information adopted by the Group are
Application of amendments to IFRS
Accounting Standards
Amendments to IFRS
Accounting Standards that are mandatorily effective for the current
year
In the current year, the Group has applied the following amendments to IFRS Accounting
Standards issued by IASB for the first time, which are mandatorily effective for the Group's
annual period beginning on 1 January 2024 for the preparation of the consolidated financial
statements:
Amendments to IFRS 16 | Lease Liability in a Sale and Leaseback |
Amendments to IAS 1 | Classification of Liabilities as Current or Non-current |
Amendments to IAS 1 | Non-current Liabilities with Covenants |
Amendments to IAS 7 and IFRS 7 | Supplier Finance Arrangements |
The application of the amendments to IFRS Accounting Standards in the current year has had
no material impact on the Group's consolidated financial positions and performance for the
current and prior years and/or on the disclosures set out in these consolidated financial statements.
New and amendments to IFRS
Accounting Standards in issue but not yet effective
The Group has not early applied the following new and amendments to IFRS Accounting
Standards that have been issued but are not yet effective:
Amendments to IFRS 9 and IFRS 7 | Amendments to the Classification and Measurement |
of Financial Instruments 3 | |
Amendments to IFRS 9 and IFRS 7 | Contracts Referencing Nature-dependent Electricity 3 |
Amendments to IFRS 10 and IAS 28 | Sale or Contribution of Assets between an Investor |
and its Associate or Joint Venture 1 | |
Amendments to IFRS Accounting | Annual Improvements to IFRS Accounting |
Standards | Standards - Volume 11 3 |
Amendments to IAS 21 | Lack of Exchangeability 2 |
IFRS 18 | Presentation and Disclosure in Financial Statements 4 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(2)
Application of new and amendments to IFRS
Accounting Standards
- continued
New and amendments to IFRS
Accounting Standards in issue but not yet effective
- continued
- 20 -
1
Effective for annual periods beginning on or after a date to be determined.
2
Effective for annual periods beginning on or after 1 January 2025.
3
Effective for annual periods beginning on or after 1 January 2026.
4
Effective for annual periods beginning on or after 1 January 2027.
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18
Presentation and Disclosure in Financial Statements
, which sets out requirements on
presentation and disclosures in financial statements, will replace IAS 1
Presentation of Financial
Statements
. This new IFRS Accounting Standard, while carrying forward many of the
requirements in IAS 1, introduces new requirements to present specified categories and defined
subtotals in the statement of profit or loss; provide disclosures on management-defined
performance measures in the notes to the financial statements and improve aggregation and
disaggregation of information to be disclosed in the financial statements. In addition, some IAS
1 paragraphs have been moved to IAS 8 and IFRS 7. Minor amendments to IAS 7 Statement of
Cash Flows and IAS 33 Earnings per Share are also made.
IFRS 18, and amendments to other standards, will be effective for annual periods beginning on
or after 1 January 2027, with early application permitted. The application of the new standard is
expected to affect the presentation of the statement of profit or loss and disclosures in the future
financial statements. The Group is in the process of assessing the detailed impact of IFRS 18 on
the Group’s consolidated financial statements.
Except as described above, the directors of the Company anticipate that the application of other
amendments to IFRS Accounting Standards will have no material impact on the consolidated
Basis of preparation of the consolidated financial statements
The consolidated financial statements have been prepared on the historical cost basis except that
the following assets and liabilities are measured at their fair value: financial derivatives, non-
derivative financial assets and liabilities at fair value through profit or loss, financial assets at
fair value through other comprehensive income. The methods used to measure fair value are
discussed further in Note 2(8).
functional currency of the Company. All financial information presented in RMB has been
rounded to the nearest thousand, except when otherwise indicated. The Group translates the
consolidated financial statements of subsidiaries from their respective functional currencies into
the Group's functional currency if the subsidiaries' functional currencies are not the same as that
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
- 21 -
Basis of consolidation
The preparation of consolidated financial statements in conformity with IFRS Accounting
Standards requires management to make judgments, estimates and assumptions that affect the
application of accounting policies and reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and in any
future periods affected.
Judgments made by management in the application of IFRS Accounting Standards that have
significant effect on the consolidated financial statements and major sources of estimation
uncertainty are discussed in Note 2(30).
Business combinations
The Group accounts for business combinations using the acquisition method when the acquired
set of activities and assets meets the definition of a business and control is transferred to the
Group (see Note 2(4)(ii)). In determining whether a particular set of activities and assets is a
business, the Group assesses whether the set of assets and activities acquired includes, at a
minimum, an input and substantive process and whether the acquired set has the ability to
produce outputs.
The Group has an option to apply a 'concentration test' that permits a simplified assessment of
whether an acquired set of activities and assets is not a business. The optional concentration test
is met if substantially all of the fair value of the gross assets acquired is concentrated in a single
Subsidiaries and non-controlling interests
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed,
or has rights, to variable returns from its involvement with the entity and has the ability to affect
those returns through its power over the entity. When assessing whether the Group has power,
only substantive rights (held by the Group and other parties) are considered.
An investment in a subsidiary is consolidated into the consolidated financial statements from the
date that control commences until the date that control ceases. Intra-group balances, transactions
and cash flows and any unrealised gains arising from intra-group transactions are eliminated in
full in preparing the consolidated financial statements. Unrealised losses resulting from intra-
group transactions are eliminated in the same way as unrealised gains but only to the extent that
there is no evidence of impairment.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(4)
Basis of consolidation
- continued
(ii)
Subsidiaries and non-controlling interests - continued
- 22 -
indirectly to the Company, and in respect of which the Group has not agreed any additional terms
with the holders of those interests which would result in the Group as a whole having a
contractual obligation in respect of those interests that meet the definition of a financial liability.
Non-controlling interests are presented in the consolidated statement of financial position within
equity, separately from equity attributable to the shareholders of the Company. Non-controlling
interests in the results of the Group are presented on the face of the consolidated statement of
profit or loss and the consolidated statement of profit or loss and other comprehensive income
as an allocation of the total profit or loss and total comprehensive income for the reporting period
Changes in the Group's interests in a subsidiary that do not result in a loss of control are
accounted for as equity transactions, whereby adjustments are made to the amounts of
controlling and non-controlling interests within consolidated equity to reflect the change in
relative interests, but no adjustments are made to goodwill and no gain or loss is recognised.
When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire
interest in that subsidiary, with a resulting gain or loss being recognised in profit or loss. Any
interest retained in that former subsidiary at the date when control is lost is recognised at fair
value and this amount is regarded as the fair value on initial recognition of a financial asset (see
Note 2(8)) or, when appropriate, the cost on initial recognition of an investment in an associate
or joint venture (see Note 2(4)(iii)).
In the Company's statement of financial position, an investment in a subsidiary is stated at cost
less impairment losses (see Note 2(15)), unless the investment is classified as held for sale (or
Associates and joint ventures
control or joint control, over its management, including participation in the financial and
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(4)
Basis of consolidation
- continued
(iii)
Associates and joint ventures - continued
- 23 -
Investment in an associate or a joint venture is accounted for in the consolidated financial
statements under the equity method, unless it is classified as held for sale (or included in a
disposal group that is classified as held for sale) or applied the exemption from the requirement
to apply equity accounting method and measured the investment at fair value through profit or
loss. Under the equity method, the investment is initially recorded at cost, adjusted for any excess
of the Group's share of the acquisition-date fair value of the investee's identifiable net assets over
the cost of the investment (if any). Thereafter, the investment is adjusted for the post acquisition
change in the Group's share of the investee's net assets and any impairment loss relating to the
investment (see Note 2(15)). Any acquisition-date excess over cost, the Group's share of the
post-acquisition, post-tax results of the investees and any impairment losses for the year are
recognised in profit or loss, whereas the Group's share of the post-acquisition post-tax items of
the investees' other comprehensive income is recognised in other comprehensive income.
When the Group's share of losses exceeds its interest in the associate or the joint venture, the
Group's interest is reduced to nil and recognition of further losses is discontinued except to the
extent that the Group has incurred legal or constructive obligations or made payments on behalf
of the investee. For this purpose, the Group's interest is the carrying amount of the investment
under the equity method together with the Group's long-term interests that in substance form part
of the Group's net investment in the associate or the joint venture.
Unrealised profits and losses resulting from transactions between the Group and its associates
and joint venture are eliminated to the extent of the Group's interest in the investee, except where
unrealised losses provide evidence of an impairment of the asset transferred, in which case they
are recognised immediately in profit or loss.
If an investment in an associate becomes an investment in a joint venture or vice versa, retained
interest is not remeasured. Instead, the investment continues to be accounted for under the equity
method.
When an investment in an associate or a joint venture is held by, or is held indirectly through,
an entity that is a venture capital organisation, or a mutual fund and similar entities, such
investment is measured at fair value through profit or loss in the Group's consolidated statement
of financial position.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(4)
Basis of consolidation
- continued
(iii)
Associates and joint ventures - continued
- 24 -
In all other cases, when the Group ceases to have significant influence over an associate or joint
control over a joint venture, it is accounted for as a disposal of the entire interest in that investee,
with a resulting gain or loss being recognised in profit or loss. Any interest retained in that former
investee at the date when significant influence or joint control is lost is recognised at fair value
and this amount is regarded as the fair value on initial recognition of a financial asset (see Note
2(8)).
In the Company's statement of financial position, investments in associates and joint venture of
the Company are accounted for using the equity method, unless it is classified as held for sale
(or included in a disposal group that is classified as held for sale) or applied the exemption from
the requirement to apply equity accounting method and measured the investment at fair value
Goodwill
Goodwill represents the excess of:
(i)
the aggregate of the fair value of the consideration transferred, the amount of any non-
controlling interest in the acquiree and the fair value of the Group's previously held equity
interest in the acquiree; over
(ii)
the net fair value of the acquiree's identifiable assets and liabilities measured as at the
acquisition date.
When (ii) is greater than (i), then this excess is recognised immediately in profit or loss as a gain
on a bargain purchase.
Goodwill is stated at cost less accumulated impairment losses. Goodwill arising on a business
combination is allocated to each cash-generating unit ("CGU"), or groups of CGUs, that is
expected to benefit from the synergies of the combination and is tested annually for impairment
(see Note 2(15)).
On disposal of a CGU during the year, any attributable amount of purchased goodwill is included
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
- 25 -
Foreign currency
When the Group receives capital in foreign currencies from investors, the capital is translated to
RMB at the spot exchange rate on the date of receipt. Other foreign currency transactions are,
on initial recognition, translated to RMB at the spot exchange rates or the rates that approximate
the spot exchange rates on the dates of the transactions.
A spot exchange rate is an exchange rate quoted by the PBOC, the State Administrative of
Foreign Exchange or a cross rate determined based on quoted exchange rates. A rate that
approximates the spot exchange rate is a rate determined under a systematic and rational method,
normally the average exchange rate of the current period.
Monetary items denominated in foreign currencies are translated to RMB at the spot exchange
rate at the end of the reporting period. The resulting exchange differences are recognised in profit
or loss, except for exchange differences on monetary items receivable from or payable to a
foreign operation for which settlement is neither planned nor likely to occur (therefore forming
part of the net investment in the foreign operation), which are recognised initially in other
comprehensive income and reclassified from equity to profit or loss on disposal or partial
disposal of the Group's interests in associates/joint ventures.
Non-monetary items denominated in foreign currencies that are measured at historical cost are
translated to RMB using the foreign exchange rate at the transaction date. Non-monetary items
denominated in foreign currencies that are measured at fair value are translated using the foreign
exchange rate at the date the fair value is determined; the resulting exchange differences are
recognised in profit or loss, except for the differences arising from the translation of equity
securities investment designated as at fair value through other comprehensive income (FVOCI)
(except on impairment, in which case foreign currency differences that have been recognised in
other comprehensive income are reclassified to profit or loss), which are recognised as OCI in
reserve.
The assets and liabilities of foreign operation are translated to RMB at the spot exchange rate at
the end of reporting period. The equity items, excluding "retained profits", are translated to RMB
at the spot exchange rates at the transaction dates. The income and expenses of foreign operation
are translated to RMB at the spot exchange rates or the rates that approximate the spot exchange
rates at the transaction dates. The resulting translation differences are recognised in other
comprehensive income, and presented in the foreign currency translation reserve (translation
reserve) in equity. Upon disposal of a foreign operation, the cumulative amount of the translation
differences recognised in shareholders' equity which relates to that foreign operation is
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
- 26 -
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits, short term deposits, and
short-term, highly liquid investments, which are readily convertible into known amounts of cash
Financial instruments
(i)
Recognition and initial measurement
Financial instruments are recognised/derecognised on the date the Group commits to
purchase/sell the investment. Financial instruments are initially stated at fair value plus directly
attributable transaction costs, except for those investments measured at fair value through profit
or loss (FVTPL) for which transaction costs are recognised directly in profit or loss. For an
explanation of how the Group determines fair value of financial instruments, see Note 2(8)(iv).
Financial instruments are subsequently accounted for as follows, depending on their
classification.
(ii)
Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI; or
FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Group
changes its business model for managing financial assets, in which case all affected financial
assets are reclassified on the first day of the first reporting period following the change in the
business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and
is not designated as at FVTPL:
-
it is held within a business model whose objective is to hold assets to collect contractual
cash flows; and
-
its contractual terms give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(8)
Financial instruments
- continued
(ii)
Classification and subsequent measurement - continued
- 27 -
A debt instruments is measured at FVOCI if it meets both of the following conditions and is not
designated as at FVTPL:
-
it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling the financial assets; and
-
its contractual terms give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may
irrevocably elect to present subsequent changes in the investment's fair value in OCI. This
election is made on an investment-by-investment basis.
All financial assets not classified as measured at amortised cost or FVOCI as described above
are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the
Group may irrevocably designate a financial asset that otherwise meets the requirements to be
measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would otherwise arise.
The Group makes an assessment of the objective of the business model in which a financial asset
is held at a portfolio level because this best reflects the way the business is managed and
information is provided to management.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition
are not considered sales for this purpose, consistent with the Group's continuing recognition of
the assets.
Financial assets that are held for trading or are managed and whose performance is evaluated on
a fair value basis are measured at FVTPL.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(8)
Financial instruments
- continued
(ii)
Classification and subsequent measurement - continued
- 28 -
Financial assets - Assessment whether contractual cash flows are solely payments of principal
and interest
For the purposes of this assessment, 'principal' is defined as the fair value of the financial asset
on initial recognition. 'Interest' is defined as consideration for the time value of money and for
the credit risk associated with the principal amount outstanding during a particular period of time
and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well
as a profit margin.
In assessing whether the contractual cash flows are solely payments of principal and interest, the
Group considers the contractual terms of the instrument. This includes assessing whether the
financial asset contains a contractual term that could change the timing or amount of contractual
cash flows such that it would not meet this condition. In making this assessment, the Group
considers:
-
contingent events that would change the amount or timing of cash flows;
-
terms that may adjust the contractual coupon rate, including variable-rate features;
-
prepayment and extension features; and
-
terms that limit the Group's claim to cash flows from specified assets (e.g. non-recourse
features).
A prepayment feature is consistent with the solely payments of principal and interest criterion if
the prepayment amount substantially represents unpaid amounts of principal and interest on the
principal amount outstanding, which may include reasonable additional compensation for early
termination of the contract. Additionally, for a financial asset acquired at a discount or premium
to its contractual paramount, a feature that permits or requires prepayment at an amount that
substantially represents the contractual par amount plus accrued (but unpaid) contractual interest
(which may also include reasonable additional compensation for early termination) is treated as
consistent with this criterion if the fair value of the prepayment feature is insignificant at initial
recognition.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(8)
Financial instruments
- continued
(ii)
Classification and subsequent measurement - continued
- 29 -
Financial assets - Subsequent measurement and gains and losses
Financial assets at | These assets are subsequently measured at fair value. Net gains and |
FVTPL | losses, including any interest or dividend income, are recognised in |
profit or loss. | |
Financial assets at | These assets are subsequently measured at amortised cost using the |
amortised cost | effective interest method. The amortised cost is reduced by impairment |
losses. Interest income, foreign exchange gains and losses and | |
impairment are recognised in profit or loss. Any gain or loss on | |
derecognition is recognised in profit or loss. | |
Debt instruments at | These assets are subsequently measured at fair value. Interest income |
FVOCI | calculated using the effective interest method, foreign exchange gains |
and losses and impairment are recognised in profit or loss. Other net | |
gains and losses are recognised in OCI. On derecognition, gains and | |
losses accumulated in OCI are reclassified to profit or loss. | |
Equity investments | These assets are subsequently measured at fair value. Dividends are |
at FVOCI | recognised as income in profit or loss unless the dividend clearly |
represents a recovery of part of the cost of the investment. Other net | |
gains and losses are recognised in OCI and are never reclassified to | |
profit or loss. |
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability
is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated
as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net
gains and losses, including any interest expense, are recognised in profit or loss. The fair value
change of a financial liability designated at FVTPL that is attributable to changes of that financial
liability's credit risk is to be recognised in OCI (without reclassification to profit or loss). Other
financial liabilities are subsequently measured at amortised cost using the effective interest
method. Interest expense and foreign exchange gains and losses are recognised in profit or loss.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(8)
Financial instruments
- continued
- 30 -
Impairment
-
financial assets measured at amortised cost;
-
debt instruments measured at FVOCI;
-
financial guarantee contracts
；
-
contract assets
；
and
-
lease receivables.
Debt instruments at fair value, FVTPL and equity securities designated at FVOCI (non-
recycling), are not subject to the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in
accordance with the contract and the cash flows that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period over
which the Group is exposed to credit risk.
In measuring ECLs, the Group takes into account reasonable and supportable information that
is available without undue cost or effort. This includes information about past events, current
conditions and forecasts of future economic conditions.
ECLs are measured on either of the following bases:
-
12-month ECLs: these are losses that are expected to result from possible default events
within the 12 months after the reporting date; and
-
lifetime ECLs: these are losses that are expected to result from all possible default events
over the expected lives of the items to which the ECL model applies.
Loss allowances for accounts receivables and contract assets are always measured at an amount
equal to lifetime ECLs. ECLs on these financial assets are estimated using a provision matrix
based on the Group's historical credit loss experience, adjusted for factors that are specific to the
debtors and an assessment of both the current and forecast general economic conditions at the
reporting date.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(8)
Financial instruments
- continued
(iii)
Impairment - continued
Measurement of ECLs
- continued
- 31 -
For all other financial instruments, the Group recognises a loss allowance equal to 12-month
ECLs unless there has been a significant increase in credit risk of the financial instrument since
initial recognition, in which case the loss allowance is measured at an amount equal to lifetime
ECLs.
The Group measures loss allowances at an amount equal to lifetime ECLs, except for the
following, which are measured at 12-month ECLs:
-
debt securities that are determined to have low credit risk at the reporting date; and
-
other debt securities and bank balances for which credit risk (i.e. the risk of default
occurring over the expected life of the financial instrument) has not increased
significantly since initial recognition.
Significant increases in credit risk
When determining whether the credit risk of a financial asset has increased significantly since
initial recognition and when estimating ECLs, the Group considers reasonable and supportable
information that is relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the Group's historical experience
and informed credit assessment and including forward-looking information.
In particular, the following information is taken into account when assessing whether credit risk
has increased significantly since initial recognition:
-
failure to make payments of principal or interest on their contractually due dates;
-
an actual or expected significant deterioration in a financial instrument's external or
internal credit rating (if available);
-
an actual or expected significant deterioration in the operating results of the debtor; and
-
existing or forecast changes in the technological, market, economic or legal environment
that have a significant adverse effect on the debtor's ability to meet its obligation to the
Group.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(8)
Financial instruments
- continued
(iii)
Impairment - continued
Significant increases in credit risk
- continued
- 32 -
Despite the aforegoing, the Group assumes that the credit risk on a debt instrument has not
increased significantly since initial recognition if the debt instrument is determined to have low
credit risk at the reporting date. A debt instrument is determined to have low credit risk if (i) it
has a low risk of default, (ii) the borrower has a strong capacity to meet its contractual cash flow
obligations in the near term and (iii) adverse changes in economic and business conditions in the
longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its
contractual cash flow obligations.
Depending on the nature of the financial instruments, the assessment of a significant increase in
credit risk is performed on either an individual basis or a collective basis. When the assessment
is performed on a collective basis, the financial instruments are grouped based on shared credit
risk characteristics, such as past due status and credit risk ratings.
Definition of default
For internal credit risk management, the Group considers an event of default occurs when
information developed internally or obtained from external sources indicates that the debtor is
unlikely to pay its creditors, including the Group, in full (without taking into account any
collateral held by the Group).
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost and
debt securities at FVOCI are credit-impaired. A financial asset is 'credit-impaired' when one or
more events that have a detrimental impact on the estimated future cash flows of the financial
asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
-
significant financial difficulty of the borrower or issuer;
-
a breach of contract such as a default;
-
the restructuring of a loan or advance by the Group on terms that the Group would not
consider otherwise;
-
it is probable that the borrower will enter bankruptcy or other financial reorganisations;
or
-
the disappearance of an active market for a security because of financial difficulties.
-
the purchase or origination of a financial asset at a deep discount that reflects the incurred
credit losses.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(8)
Financial instruments
- continued
(iii)
Impairment - continued
- 33 -
Presentation of allowance for ECL in the consolidated statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross
carrying amount of the assets.
For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in
OCI.
Write-off
The gross carrying amount of a financial asset is written-off when the Group has no reasonable
expectations of recovering a financial asset in its entirety or a portion thereof. The Group expects
no significant recovery from the amount written-off. However, financial assets that are written-
off could still be subject to enforcement activities in order to comply with the Group's procedures
for recovery of amounts due.
Subsequent recoveries of an asset that was previously written-off are recognised as a reversal of
Fair value measurement
If there is an active market for a financial asset or financial liability, the quoted market price
without adjusting for transaction costs that may be incurred upon future disposal or settlement
is used to establish the fair value of the financial asset or financial liability. Quoted prices from
an active market are prices that are readily and regularly available from an exchange, dealer,
broker, industry group or pricing service agency, and represent actual and regularly occurring
market transactions on an arm's length basis.
If no active market exists for a financial instrument, a valuation technique is used to establish
the fair value. Valuation techniques include using recent arm's length market transactions
between knowledgeable, willing parties, reference to the current fair value of another instrument
that is substantially the same, discounted cash flow analysis and option pricing models. Where
discounted cash flow technique is used, future cash flows are estimated based on management's
best estimates and the discount rate used is the prevailing market rate applicable for instrument
with similar terms and conditions at the end of the reporting period. Where other pricing models
are used, inputs are based on market data at the end of the reporting period.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(8)
Financial instruments
- continued
(iv)
Fair value measurement - continued
- 34 -
In estimating the fair value of a financial asset and financial liability, the Group considers all
factors including, but not limited to, risk-free interest rate, credit risk, foreign exchange rate and
market volatility, that are likely to affect the fair value of the financial asset and financial liability.
The Group obtains market data from the same market where the financial instrument was
Derecognition of financial assets and financial liabilities
Financial assets (or a part of a financial asset or group of financial assets) are derecognised when
the financial assets meet one of the following conditions:
-
the contractual rights to the cash flows from the financial asset expire; or
-
the Group transfers substantially all the risks and rewards of ownership of the financial
assets or where substantially all the risks and rewards of ownership of a financial asset
are neither retained nor transferred, the control over that asset is relinquished.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of
the financial asset, but retains control, the Group continues to recognise the financial asset and
relevant liability to the extent of its continuing involvement in the financial asset.
The financial liability (or part of it) is derecognised only when the underlying present obligation
(or part of it) specified in the contracts is discharged, cancelled or expired. An agreement
between the Group and an existing lender to replace the original financial liability with a new
financial liability with substantially different terms, or a substantial modification of the terms of
an existing financial liability is accounted for as an extinguishment of the original financial
liability and recognition of a new financial liability. The difference between the carrying amount
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(8)
Financial instruments
- continued
- 35 -
Offsetting
Financial assets and financial liabilities are offset and the net amount is reported in the
consolidated statement of financial position when the Group has a legally enforceable right to
set off the recognised amounts and the transactions are intended to be settled on a net basis, or
Equity instruments
An equity instrument is a contract that proves the ownership interest of the residual assets after
deducting all liabilities of the Group. Considerations received from issuance of equity
instruments net of transaction costs are recognised in equity. Considerations and transaction
(viii)
Perpetual bonds
At initial recognition, the Group classifies the perpetual bonds issued as financial liabilities or
equity instruments based on their contractual terms and their economic substance after
considering the definition of financial liabilities and equity instruments.
Perpetual bonds issued that should be classified as equity instruments are recognised in equity
based on the actual amount received. Any distribution of dividends or interests during the
instruments' duration is treated as profit appropriation. When the perpetual bonds are redeemed
according to the contractual terms, the redemption price is charged to equity.
Derivative financial instruments
Derivative financial instruments are recognised at fair value. At the end of each reporting period
the fair value is remeasured. The gain or loss on remeasurement to fair value is recognised
immediately in profit or loss, except where the derivatives qualify for cash flow hedge
accounting or hedges of net investment in a foreign operation, in which case recognition of any
resultant gain or loss depends on the nature of the item being hedged.
A derivative is presented as a non-current asset or a non-current liability if the remaining
maturity of the instrument is more than 12 months and it is not due to be realised or settled within
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(8)
Financial instruments
- continued
- 36 -
Hedge accounting
At the inception of a hedging relationship, the Group formally designates the hedge instruments
and the hedged items, and documents the hedging relationship to which the Group wishes to
apply hedge accounting and the risk management objective and strategy for undertaking the
hedge. The documentation includes identification of the hedging instrument, the hedged item or
transaction, the nature of the risk being hedged and how the entity will assess the hedging
instrument's effectiveness in offsetting the exposure to changes in the hedged item's fair value
or cash flows attributable to the hedged risk. Such hedges are expected to meet the hedge
effectiveness in achieving offsetting changes in fair value or cash flows and are assessed on an
ongoing basis to analyse the sources of hedge ineffectiveness which are expected to affect the
hedging relationship in remaining hedging period. If a hedging relationship ceases to meet the
hedge effectiveness requirement relating to the hedge ratio, but the risk management objective
for that designated hedging relationship remains the same, the Group would rebalance the
hedging relationship.
The Group designates such hedged items as debt securities issued with floating interest that
expose the Group to the risk of variability of its cash flows.
Certain derivative transactions, while providing effective economic hedges under the Group's
risk management positions, do not qualify for hedge accounting and are therefore treated as
derivatives held for trading with fair value gains or losses recognised
in profit or loss. Hedges
which meet the strict criteria for hedge accounting are accounted for in accordance with the
Group's accounting policy as set out below.
Fair value hedges
Fair value hedges are hedges of the Group's exposure to changes in the fair value of a recognised
asset or liability or an unrecognised firm commitment, or an identified portion of such an asset,
liability or unrecognised firm commitment, that is attributable
to a particular risk and could affect
the profit or loss or other comprehensive income. Among them, the circumstances affecting other
comprehensive income are limited to the hedging for the risk exposure from fair value change
of non-trading equity investment designated as at FVOCI. For fair value hedges, the carrying
amount of the hedged item is adjusted for gains and losses attributable to the risk being hedged,
the derivative is remeasured at fair value and the gains and losses from both are taken to pro
fit
or loss or other comprehensive income.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(8)
Financial instruments
- continued
(x)
Hedge accounting - continued
Fair value hedges
- continued
- 37 -
For hedged items recorded at amortised cost, the difference between the carrying value of the
hedged item and the face value is amortised over the remaining term of the original hedge using
the effective interest rate method.
When an unrecognised firm commitment is designated as a hedged item, the subsequent
cumulative change in the fair value of the firm commitment attributable to the hedged risk is
recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss.
The changes in the fair value of the hedging instrument are also
recognised in profit or loss.
The Group discontinues fair value hedge accounting when the hedging relationship ceases to
meet the qualifying criteria after taking into account any rebalancing of the hedging relationship,
including the hedging instrument has expired or has been sold, terminated or exercised. If the
hedged items are derecognised, the unamortised fair value is recorded in profit or loss.
Cash flow hedges
Cash flow hedges are hedges of the Group's exposure to variability in cash flows that is
attributable to a particular risk associated with a recognised asset or liability, a highly probable
forecast transaction or a component of any such item, and could affe
ct profit or loss. For
designated and qualifying cash flow hedges, the effective portion of the gain or loss on the
hedging instrument is initially recognised directly in other comprehensive income. The
ineffective portion of the gain or loss on the hedging instrument is recognised immediately in
profit or loss.
When the hedged cash flow affects profit or loss, the gain or loss on the hedging instrument
recognised directly in other comprehensive income is recycled in the corresponding income or
expense line of the statement of profit or loss. When the hedging relatio
nship ceases to meet the
qualifying criteria after taking into account any rebalancing of the hedging relationship,
including the hedging instrument has expired or has been sold, terminated or exercised, any
cumulative gain or loss existing in other comprehensive income at that time remains in other
comprehensive income until the hedged forecast transaction ultimately occurs. When a forecast
transaction is no longer expected to occur, the cumulative gain or loss that was reported in other
comprehensive inco
me is immediately transferred to profit or loss.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(8)
Financial instruments
- continued
(x)
Hedge accounting - continued
- 38 -
Net investment hedges
Net investment hedge is a hedge of the currency risk of a net investment in a foreign institution
operation.
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges.
Any gain or loss on the hedging instrument relating to the effective portion of the hedge is
recognised directly in other comprehensive income; the gain or loss relating to the ineffective
portion is recognised in profit or loss immediately. Gains and losses accumulated in other
comprehensive income are included in profit or loss when the foreign operation is disposed of
Margin financing and securities lending
Margin financing and securities lending refer to the lending of funds by the Group to customers
for purchase of securities, or lending of securities by the Group to customers for securities selling,
for which the customers provide the Group with collateral.
The classification, subsequent measurement and impairment of margin financing receivables is
based on policies in Note 2(8). Securities lent are not derecognised when the risk and rewards
are not transferred, and interest income from margin financing receivables and securities lent is
recognised accordingly.
collateral from counterparties is only reflected on the statement of financial position if the risks
Securities trading on behalf of margin financing or securities lending customers are accounted
Financial assets held under resale and sold under repurchase agreements
Financial assets held under resale agreements are transactions where the Group acquires
financial assets which will be resold at a predetermined price at a future date under resale
agreements. Financial assets sold under repurchase agreements are transactions where the Group
sells financial assets which will be repurchased at a predetermined price at a future date under
repurchase agreements.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(10)
Financial assets held under resale and sold under repurchase agreements
- continued
- 39 -
The cash advanced or received is recognised as amounts held under resale or sold under
repurchase agreements in the consolidated statement of financial position. Assets held under
resale agreements are recorded in memorandum accounts as off-balance sheet items. Assets sold
under repurchase agreements continue to be recognised in the consolidated statement of financial
position.
The difference between the purchase and resale consideration, and that between the sale and
repurchase consideration, is amortised over the period of the respective transaction using the
Investments in subsidiaries
In the Group's consolidated financial statements, investments in subsidiaries are accounted for
in accordance with the principles described in Note 2(4).
In the Company's statement of financial position, investments in subsidiaries are accounted for
using the cost method. The investment is stated at cost less impairment loss (Note 2(15)) in the
statements of financial position. Except for declared but not yet distributed cash dividends or
profits distribution that have been included in the price or consideration paid in obtaining the
investments, the Group recognises its share of the cash dividends or profit distribution declared
Property and equipment and construction in progress
(i)
Recognition and measurement
Items of property and equipment are measured at cost less accumulated depreciation and any
accumulated impairment losses (see Note 2(15)). Cost includes expenditure that is directly
attributable to the acquisition of the asset. The cost of self-constructed assets includes the
following:
-
the cost of materials and direct labour;
-
any other costs directly attributable to bringing the assets to a working condition for their
intended use;
-
when the Group has an obligation to remove the asset or restore the site, an estimate of
the costs of dismantling and removing the items and restoring the site on which they are
located; and
-
capitalised borrowing costs.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(12)
Property and equipment and construction in progress
- continued
(i)
Recognition and measurement - continued
- 40 -
Purchased software that is integral to the functionality of the related equipment is capitalised as
part of that equipment. When parts of an item of property and equipment have different useful
lives, they are accounted for as separate items (major components) of property and equipment.
Any gain or loss on disposal of an item of property and equipment (calculated as the difference
between the net proceeds from disposal and the carrying amount of the item) is recognised in
profit or loss.
Costs of construction in progress are determined based on the actual expenditures incurred which
include all necessary expenditures incurred during the construction period, borrowing costs
eligible for capitalisation and other costs incurred to bring the asset to its intended use.
Items classified as construction in progress are transferred to property and equipment when such
assets are ready for their intended use.
(ii)
Subsequent costs
Subsequent expenditure is capitalised only when it is probable that the future economic benefits
associated with the expenditure will flow to the Group. Ongoing repairs and maintenance are
expensed as incurred.
Depreciation
Items of property and equipment are depreciated from the date they are available for use or, in
respect of self-constructed assets, from the date that the asset is completed and ready for use.
Depreciation is calculated to write-off the cost of items of property and equipment less their
estimated residual values using the straight-line basis over their estimated useful lives.
Depreciation is generally recognised in profit or loss, unless the amount is included in the
carrying amount of another asset. Leased assets are depreciated over the shorter of the lease term
and their useful lives unless it is reasonably certain that the Group will obtain ownership by the
end of the lease term.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(12)
Property and equipment and construction in progress
- continued
(iii)
Depreciation - continued
- 41 -
The estimated useful lives for the current and comparative years of significant items of property
and equipment are as follows:
Estimated | Estimated | Depreciation | |
Types of assets | useful lives | residual values | rates |
Buildings | 30 - 35 years | 3% | 2.77% - 3.23% |
Motor vehicles | 5 - 8 years | 3% | 12.13% - 19.40% |
Electronic equipment | 5 years | 3% | 19.40% |
Furniture and fixtures | 5 years | 3% | 19.40% |
No depreciation is provided in respect of construction in progress. Depreciation methods, useful
Investment property
Investment property is property held either to earn rental income or for capital appreciation or
for both, but not for sale in the ordinary course of business, use in the production or supply of
goods or services or for administrative purposes.
Investment property is accounted for using the cost model and stated in the financial statements
at cost less accumulated depreciation, and impairment losses (see Note 2(15)). The cost of
investment property, less its estimated residual value and accumulated impairment losses, is
depreciated using the straight-line method over its estimated useful life, unless the investment
property is classified as held for sale.
Estimated | Estimated | Depreciation | |
useful lives | residual values | rates | |
Investment property | 30 - 35 years | 3% | 2.77% - 3.23% |
Cost includes expenditure that is directly attributable to the acquisition of the investment
property. The cost of self-constructed investment property includes the cost of materials and
direct labour, any other costs directly attributable to bringing the investment property to a
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
- 42 -
Land-use rights and other intangible assets
Intangible assets are stated at cost less accumulated amortisation (where the estimated useful life
is finite) and impairment loss (see Note 2(15)). For an intangible asset with finite useful life, its
cost less impairment loss is amortised on the straight-line method over its estimated useful life.
The respective amortisation periods for intangible assets are as follows:
Types of assets | Estimated useful lives |
Existing relationships with broker-dealers | Indefinite |
Enterprise distribution channel customer relationships | Indefinite |
Trading seat fee | Indefinite |
Land-use rights | 40 - 50 years |
Trade names | 11 - 20 years |
Software and others | 2 - 14 years |
An intangible asset is regarded as having an indefinite useful life and is not amortised when there
is no foreseeable limit to the period over which the asset is expected to generate economic
Impairment of non-financial assets
The carrying amounts of the following assets are reviewed at each reporting date to determine
whether there is any indication of impairment:
-
property and equipment
-
construction in progress
-
investment property
-
land-use rights and other intangible assets
-
equity investment in subsidiaries, associates and joint ventures
-
goodwill
-
leasehold improvements and long-term deferred expenses
If any such indication exists, then the asset's recoverable amount is estimated. Goodwill and
indefinite-lived intangible assets are tested annually for impairment. An impairment loss is
recognised if the carrying amount of an asset or CGU exceeds its recoverable amount.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(15)
Impairment of non-financial assets
- continued
- 43 -
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value
less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset or CGU. For impairment testing, assets are
grouped together into the smallest group of assets that generates cash inflows from continuing
use that are largely independent of the cash inflows of other assets or CGUs. Subject to an
operating segment ceiling test, CGUs to which goodwill has been allocated are aggregated so
that the level at which impairment testing is performed reflects the lowest level at which goodwill
is monitored for internal reporting purposes. Goodwill acquired in a business combination is
allocated to groups of CGUs that are expected to benefit from the synergies of the combination.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of
CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU
(group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group
of CGUs) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss
is reversed only to the extent that the asset's carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortisation, if no impairment
Non-current assets held for sale
Non-current assets (and disposal groups) are classified as held for sale if their carrying amount
will be recovered principally through a sale transaction rather than through continuing use. This
condition is regarded as met only when the asset (or disposal group) is available for immediate
sale in its present condition subject only to terms that are usual and customary for sales of such
asset (or disposal group) and its sale is highly probable. Management must be committed to the
sale, which should be expected to qualify for recognition as a completed sale within one year
from the date of classification.
When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the
assets and liabilities of that subsidiary are classified as held for sale when the criteria described
above are met, regardless of whether the Group will retain a non-controlling interest in the
relevant subsidiary after the sale.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information - continued
(16)
Non-current assets held for sale
- continued
- 44 -
When the Group is committed to a sale plan involving disposal of an investment, or a portion of
an investment, in an associate or joint venture, the investment or the portion of the investment
that will be disposed of is classified as held for sale when the criteria described above are met,
and the Group discontinues the use of the equity method in relation to the portion that is classified
as held for sale from the time when the investment (or a portion of the investment) is classified
as held for sale.
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of
their carrying amount and fair value less costs to sell, except for financial assets within the scope
of IFRS 9 which continue to be measured in accordance with the accounting policies as set out
Contract assets and contract liabilities
A contract asset represents the Group's right to consideration in exchange for goods or services
that the Group has transferred to a customer that is not yet unconditional. Contract assets are
assessed for ECL in accordance with the policy set out in Note 2(8)(iii) and are reclassified to
receivables when the right to the consideration has become unconditional.
A contract liability is recognised when the customer pays consideration before the Group
recognises the related revenue. A contract liability would also be recognised if the Group has an
unconditional right to receive consideration before the Group recognises the related revenue. In
such cases, a corresponding receivable would also be recognised.
For a single contract with the customer, either a net contract asset or a net contract liability is
presented. For multiple contracts, contract assets and contract liabilities of unrelated contracts
are not presented on a net basis.
When the contract includes a significant financing component, the contract balance includes
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
- 45 -
Employee benefits
(i)
Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are
expensed as the related service is provided. A liability is recognised for the amount expected to
be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or
constructive obligation to pay this amount as a result of past service provided by the employee,
and the obligation can be estimated reliably.
(ii)
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed
contributions into a separate entity and has no legal or constructive obligation to pay further
amounts. Obligations for contributions to defined contribution plans are recognised as an
employee benefit expense in profit or loss in the periods during which related services are
rendered by employees.
(iii)
Other long-term employee benefits
The Group's net obligation in respect of long-term employee benefits other than pension plans
is the amount of future benefit that employees have earned in return for their service in the
current and prior periods. That benefit is discounted to determine its present value, and the fair
value of any related assets is deducted. The discount rate is the yield at the reporting date on
corporate bonds, which have a credit rating of at least AA from rating agency, that have maturity
dates approximating the terms of the Group's obligations and that are denominated in the
currency in which the benefits are expected to be paid. The calculation is performed using the
projected unit credit method. Any actuarial gains and losses are recognised in profit or loss in
the period in which they arise.
Termination benefits
Termination benefits are recognised as an expense when the Group is demonstrably committed,
without realistic possibility of withdrawal, to a formal detailed plan to either terminate
employment before the normal retirement date, or to provide termination benefits as a result of
an offer made to encourage voluntary redundancy. Termination benefits for voluntary
redundancies are recognised as an expense if the Group has made an offer of voluntary
redundancy, it is probable that the offer will be accepted, and the number of acceptances can be
estimated reliably. If benefits are payable more than 12 months after the reporting date, then they
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
- 46 -
Share-based payments
(i)
Accounting treatment of cash-settled share-based payments
Where the Group receives services from employees by incurring a liability to deliver cash or
other assets for amounts that are determined based on the price of shares or other equity
instruments, the service received from employees is measured at the fair value of the liability
incurred. If a cash-settled share-based payment do not vest until the completion of services for a
period, or until the achievement of a specified performance condition, the Group recognises costs
or expenses as services are received, with a corresponding increase in liability, at an amount
equal to the fair value of the liability based on the best estimate of the outcome of vesting. Until
the liability is settled, the Group will remeasure the fair value of the liability at each balance
sheet date and at the date of settlement, with changes recognised in profit or loss for the current
period.
When the Group receives services and has the obligation to settle the transaction, but the relevant
equity instruments are issued by the Company's ultimate parent or its subsidiaries outside the
Group, the Group classifies the transaction as cash-settled.
(ii)
Accounting treatment of equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for services received
from the employees, the payment is measured at the fair value of the equity instruments granted
to the employees at the grant date. If the equity instruments granted do not vest until the
completion of services for a period, or until the achievement of a specified performance
condition, the Group recognises an amount at each balance sheet date during the vesting period
based on the best estimate of the number of equity instruments expected to vest according to the
newly obtained subsequent information of the changes of the number of the employees expected
to vest the equity instruments. The Group measures the services received at the grant-date fair
value of the equity instruments and recognises the costs or expenses as the services are received,
with a corresponding increase in capital reserve.
When the Group receives services, but the Group has no obligation to settle the transaction
because the relevant equity instruments are issued by the Company's ultimate parent or its
Income tax
Income tax expense comprises current and deferred income tax expense. Current tax and
deferred tax is recognised in profit or loss except to the extent that it relates to a business
combination, or items recognised directly in equity or in OCI.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(20)
Income tax
- continued
- 47 -
(i)
Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the year,
using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax
payable in respect of previous years. Current tax payable also includes any tax liability arising
from the declaration of dividends.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
-
temporary differences on the initial recognition of assets or liabilities in a transaction that
is not a business combination and that affects neither accounting nor taxable profit or
loss and at the time of the transaction does not give rise to equal taxable and deductible
temporary differences;
-
temporary differences related to investments in subsidiaries, associates and jointly
controlled entities to the extent that the Group is able to control the timing of the reversal
of the temporary differences and it is probable that they will not reverse in the foreseeable
future; and
-
taxable temporary differences arising on the initial recognition of goodwill.
The measurement of deferred tax reflects the tax consequences that would follow the manner in
which the Group expects, at the end of the reporting period, to recover or settle the carrying
amount of its assets and liabilities. For investment property that is measured at fair value, the
presumption that the carrying amount of the investment property will be recovered through sale
has not been rebutted.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences
when they reverse, using tax rates enacted or substantively enacted at the reporting date.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(20)
Income tax
- continued
(ii)
Deferred tax - continued
- 48 -
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets
on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary
differences to the extent that it is probable that future taxable profits will be available against
which they can be utilised. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
For the purposes of measuring deferred tax for leasing transactions in which the Group
recognises the right-of-use assets and the related lease liabilities, the Group first determines
whether the tax deductions are attributable to the right-of-use assets or the lease liabilities.
For leasing transactions in which the tax deductions are attributable to the lease liabilities, the
Group applies IAS 12 requirements to the lease liabilities and the related assets separately. The
Group recognises a deferred tax asset related to lease liabilities to the extent that it is probable
that taxable profit will be available against which the deductible temporary difference can be
(iii)
Tax exposures
In determining the amount of current and deferred tax, the Group takes into account the impact
of uncertain tax positions and whether additional taxes and interest may be due. This assessment
relies on estimates and assumptions and may involve a series of judgements about future events.
New information may become available that causes the Group to change its judgement regarding
the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in
Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. To assess whether a contract conveys
the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS
16. Such contract will not be reassessed unless the terms and conditions of the contract are
subsequently changed.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(21)
Leases
- continued
- 49 -
(i)
As a lessee
At commencement or on modification of a contract that contains a lease component, the Group
allocates the consideration in the contract to each lease component on the basis of its relative
stand‑alone prices. However, for the leases of property the Group has elected not to separate
non‑lease components and account for the lease and non‑lease components as a single lease
component.
The Group recognises a right‑of‑use asset and a lease liability at the lease commencement date.
The right‑of‑use asset is initially measured at cost, which comprises the initial amount of the
lease liability adjusted for any lease payments made at or before the commencement date, plus
any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying
asset or to restore the underlying asset or the site on which it is located, less any lease incentives
received.
The right‑of‑use asset is subsequently depreciated using the straight‑line method from the
commencement date to the end of the lease term, unless the lease transfers ownership of the
underlying asset to the Group by the end of the lease term or the cost of
the right‑of‑use asset
reflects that the Group will exercise a purchase option. In that case the right‑of‑use asset will be
depreciated over the useful life of the underlying asset, which is determined on the same basis
as those of property and equipment.
In addition, the right‑of‑use asset is periodically reduced by
impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date, discounted using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group
uses its incremental borrowing rate as the discount rate.
The Group determines its incremental borrowing rate by obtaining interest rates from various
external financing sources and makes certain adjustments to reflect the terms of the lease and
type of the asset leased.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(21)
Leases
- continued
(i)
As a lessee - continued
- 50 -
Lease payments included in the measurement of the lease liability comprise the following:
-
fixed payments, including
in‑substance fixed payments;
-
variable lease payments that depend on an index or a rate, initially measured using the
index or rate as at the commencement date;
-
amounts expected to be payable under a residual value guarantee; and
-
the exercise price under a purchase option that the Group is reasonably certain to exercise,
lease payments in an optional renewal period if the Group is reasonably certain to
exercise an extension option, and penalties for early termination of a lease unless the
Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is
remeasured when there is a change in future lease payments arising from a change in an index
or rate, if there is a change in the Group's estimate of the amount expected to be payable under
a residual value guarantee, if the Group changes its assessment of whether it will exercise a
purchase, extension or termination option or if there is a revised in‑substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the
carrying amount of the right‑of‑use asset, or is recorded in profit or loss if the carrying amount
of the right‑of‑use asset has been reduced to zero.
The Group presents right‑of‑use assets that do not meet the definition of investment property in
'property and equipment' and lease liabilities in 'other payables and accruals' in the statement of
financial position.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right‑of‑use assets and lease liabilities for leases of
low‑value assets and short‑term leases, including IT equipment. The Group recognises the lease
payments associated with these leases as an expense on a straight‑
line basis over the lease term.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(21)
Leases
- continued
- 51 -
(ii)
As a lessor
At inception or on modification of a contract that contains a lease component, the Group
allocates the consideration in the contract to each lease component on the basis of their relative
stand-alone prices.
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance
lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers
substantially all of the risks and rewards incidental to ownership of the underlying asset. If this
is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this
assessment, the Group considers certain indicators such as whether the lease is for the major part
of the economic life of the asset.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the
sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-
of-use asset arising from the head lease, not with reference to the underlying asset.
If a head lease is a short-term lease to which the Group applies the exemption described above,
then it classifies the sub-lease as an operating lease.
If an arrangement contains lease and non-lease components, then the Group applies IFRS 15 to
allocate the consideration in the contract.
The Group applies the derecognition and impairment requirements in IFRS 9 to the net
investment in the lease (see Note 2(8)). The Group further regularly reviews estimated
unguaranteed residual values used in calculating the gross investment in the lease.
The Group recognises lease payments received under operating leases as income on a straight-
Provisions and contingent liabilities
A provision is recognised if, as a result of a past event, the Group has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. Provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The unwinding of
the discount is recognised as finance cost.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(22)
Provisions and contingent liabilities
- continued
- 52 -
Where it is not probable that an outflow of economic benefits will be required, or the amount
cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the
probability of outflow of economic benefits is remote. Possible obligations, whose existence will
only be confirmed by the occurrence or non-occurrence of one or more future events, are also
disclosed as contingent liabilities unless the probability of outflow of economic benefits is
(23)
Fiduciary activities
The Group acts in a fiduciary activity as a manager, a custodian, or an agent for customers.
Assets held by the Group and the related undertakings to return such assets to customers are
recorded as off-balance sheet items as the risks and rewards of the assets reside with customers.
Revenue recognition
Revenue is recognised when control over a service is transferred to the customer at the amount
of promised consideration to which the Group is expected to be entitled, excluding those amounts
collected on behalf of third parties. Revenue excludes value added tax or other sales taxes and is
after deduction of any trade discounts.
Where the contract contains a variable consideration, the Group estimates the amount of
consideration to which it will be entitled in exchange for transferring the promised services to a
customer and includes in the transaction price some or all of the variable consideration estimated,
such that revenue is only recognised to the extent that it is highly probable that a significant
reversal in the amount of cumulative revenue recognised will not occur.
Where the contract contains a financing component which provides a significant financing
benefit to the customer for more than 12 months, revenue is measured at the present value of the
amount receivable, discounted using the discount rate that would be reflected in a separate
financing transaction with the customer, and interest income is accrued separately under the
effective interest method. Where the contract contains a financing component which provides a
significant financing benefit to the Group, revenue recognised under that contract includes the
interest expense accreted on the contract liability under the effective interest method. The Group
takes advantage of the practical expedient of IFRS 15 and does not adjust the consideration for
any effects of a significant financing component if the period of financing is 12 months or less.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(24)
Revenue recognition
- continued
- 53 -
Further details of the Group's revenue and other income recognition policies are as follows:
Commission income from brokerage business
Brokerage commission income is recognised on a trade date basis when the relevant transactions
are executed. Handling and settlement fee income arising from brokerage business is recognised
when the related services are rendered.
(ii)
Underwriting and sponsor fees
Underwriting fee is recognised when the Group has fulfilled its obligations under the
underwriting contract.
Depending on contract terms, sponsor fees are recognised progressively over time using a
method that depicts the Group's performance, or at a point in time when the service is completed.
(iii)
Advisory fees
Depending on the nature of the advisory services and the contract terms, advisory fees are
recognised progressively over time using a method that depicts the Group's performance, or at a
point in time when the advisory service is completed.
(iv)
Asset management fees
Asset management fees include periodic management fees calculated based on assets under
management and performance-based fees. The fees are recognised progressively over time using
a method that depicts the Group's performance, to the extent that it is highly probable that a
(v)
Other income
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
- 54 -
Expenses recognition
Commission expenses
Commission expenses relate mainly to transactions, which are recognised as expenses when the
Interest expenses
Interest expenses are recognised based on the principal outstanding and at the effective interest
(iii)
Other expenses
Dividend distribution
Dividends or profit distributions proposed in the profit appropriation plan, which will be
authorised and declared after the end of the reporting period, are not recognised as a liability at
Government grants
Government grants are not recognised until there is reasonable assurance that the Group will
comply with the conditions attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in
which the Group recognises as expenses the related costs for which the grants are intended to
compensate. Specifically, government grants whose primary condition is that the Group should
purchase, construct or otherwise acquire non-current assets are recognised as deferred revenue
in the consolidated statement of financial position and transferred to profit or loss on a systematic
and rational basis over the useful lives of the related assets.
Government grants related to income that are receivable as compensation for expenses or losses
already incurred or for the purpose of giving immediate financial support to the Group with no
future related costs are recognised in profit or loss in the period in which they become receivable.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
- 55 -
Related parties
(i)
A person, or a close member of that person's family, is related to the Group if that person:
(1)
has control or joint control over the Group;
(2)
has significant influence over the Group; or
(3)
is a member of the key management personnel of the Group or the Group's parent.
(ii)
An entity is related to the Group if any of the following conditions applies:
(1)
The entity and the Group are members of the same group (which means that each parent,
subsidiary and fellow subsidiary is related to the others).
(2)
One entity is an associate or joint venture of the other entity (or an associate or joint
venture of a member of a group of which the other entity is a member).
(3)
Both entities are joint ventures of the same third party.
(4)
One entity is a joint venture of a third entity and the other entity is an associate of the
third entity.
(5)
The entity is a post-employment benefit plan for the benefit of employees of either the
Group or an entity related to the Group.
(6)
The entity is controlled or jointly controlled by a person identified in (i).
(7)
A person identified in (i)(1) has significant influence over the entity or is a member of
the key management personnel of the entity (or of a parent of the entity).
(8)
The entity, or any member of a group of which it is a part, provides key management
personnel services to the Group or to the Group's parent.
Close members of the family of a person are those family members who may be expected to
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
- 56 -
Segment reporting
Reportable segments are identified based on operating segments which are determined based on
the structure of the Group's internal organisation, management requirements and internal
reporting system. An operating segment is a component of the Group that engages in business
activities from which it may earn revenues and incur expenses, whose financial performance are
regularly reviewed by the Group's management to make decisions about resource to be allocated
to the segment and assess its performance, and for which financial information regarding
financial position, financial performance and cash flows is available.
Two or more operating segments may be aggregated into a single operating segment if the
segments have same or similar economic characteristics and are similar in respect of the nature
of each products and service, the nature of production processes, the type or class of customers
for the products and services, the methods used to distribute the products or provide the services,
and the nature of the regulatory environment.
Inter-segment revenues are measured on the basis of actual transaction price for such transactions
for segment reporting, and segment accounting policies are consistent with those for the
Significant accounting estimates and judgements
The preparation of financial statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these judgments and estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and in any
future periods affected.
(i)
Fair value of financial instruments
If the market for a financial instrument is not active, the Group determines the fair value by using
valuation technique. Valuation technique makes maximum use of observable market input.
However, where observable market inputs are not available, management makes estimates on
such unobservable market inputs.
(ii)
Measurement of ECL
The following significant judgements are required in applying the accounting requirements for
measuring the ECL.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(30)
Significant accounting estimates and judgements
- continued
(ii)
Measurement of ECL - continued
- 57 -
Significant increase of credit risk
As explained in Note 2(8)(iii), ECL are measured as an allowance equal to 12-month ECL for
Stage 1 assets, or lifetime ECL assets for Stage 2 or Stage 3 assets. An asset moves to Stage 2
when its credit risk has increased significantly since initial recognition. In assessing whether the
credit risk of an asset has significantly increased, the Group takes into account qualitative and
quantitative reasonable and supportable forward looking information.
Establishing groups of assets with similar credit risk characteristics
When ECLs are measured on a collective basis, the financial instruments are grouped on the
basis of shared risk characteristics. The Group monitors the appropriateness of the credit risk
characteristics on an ongoing basis to assess whether they continue to be similar. This is required
in order to ensure that should credit risk characteristics change there is appropriate re-
segmentation of the assets. This may result in new portfolios being created or assets moving to
an existing portfolio that better reflects the similar credit risk characteristics of that group of
assets. Assets move from 12-month to lifetime ECLs when there is a significant increase in credit
risk, but it can also occur within portfolios that continue to be measured on the same basis of 12-
month or lifetime ECLs but the amount of ECL changes because the credit risk of the portfolios
differ.
Models and assumptions used
The Group uses various models and assumptions in estimating ECL. Judgement is applied in
identifying the most appropriate model for each type of asset, as well as for determining the
assumptions used in these models, including assumptions that relate to key drivers of credit risk.
Forward-looking information
When measuring ECL the Group uses reasonable and supportable forward looking information,
which is based on assumptions for the future movements of different economic drivers and how
these drivers will affect each other.
Probability of default (PD)
PD constitutes a key input in measuring ECL. PD is an estimate of the likelihood of default over
a given time horizon, the calculation of which includes historical data, assumptions and
expectations of future conditions.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(30)
Significant accounting estimates and judgements
- continued
(ii)
Measurement of ECL - continued
- 58 -
Loss given default (LGD)
LGD is an estimate of the loss arising on default. It is based on the difference between the
contractual cash flows due and those that the lender would expect to receive, taking into account
cash flows from collateral and integral credit enhancements.
Loss rate (LR)
LR represents the Group's expectation of the likelihood and extent of loss on exposure based on
the relevant loan to collateral ratio. The Group uses historical loss rates based on publicly
available information and assesses their appropriateness.
(iii)
Impairment of non-financial assets
At the end of the reporting period, the carrying amount of non-financial assets are reviewed to
determine whether there is any indication that these assets have suffered an impairment loss. If
any such indication exists, an impairment loss is provided. Goodwill and indefinite-lived
intangible assets are tested annually for impairment.
Since the market price of an asset (the asset group) cannot be obtained reliably, the fair value of
the asset cannot be estimated reliably. In assessing the present value of future cash flows,
significant judgements are exercised over the future cash flows and discounting rates, based on
all relevant materials which can be obtained together with reasonable and supportable
assumptions.
(iv)
Income taxes
Determining income tax provisions requires the Group to estimate the future tax treatment of
certain transactions. The Group evaluates tax implications of transactions in accordance with
prevailing tax regulations and makes tax provisions accordingly. In addition, deferred tax assets
are recognised to the extent that it is probable that future taxable profit will be available against
which the deductible temporary differences can be utilised. This requires significant judgement
on the tax treatments of certain transactions and also significant assessment on the probability
that adequate future taxable profits will be available for the deferred tax assets to be recovered.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
2.
Material accounting policy information
- continued
(30)
Significant accounting estimates and judgements
- continued
- 59 -
(v)
Determination scope of consolidation
All facts and circumstances must be taken into consideration in the assessment of whether the
Group, controls the investee. The principle of control includes three elements: (i) power over the
investee; (ii) exposure, or rights, to variable returns from involvement with the investee; and (iii)
the ability to use power over the investee to affect the amount of investors' returns. The Group
reassesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control listed above.
The Group held interests as investor and/or acted as investment manager in various structured
entities including asset management schemes, investment funds and partnerships. The Group
considered its power, arising from the rights entitled directly or indirectly, over the structured
entities, and assessed whether the combination of investments it held together with its
remuneration created exposure to variability of returns from the structured entities that are of
such significance that it indicated the Group controlled the structured entities and should
Taxation
The Group's main applicable taxes and tax rates are as follows:
Tax type | Tax basis | Tax rate |
Value-added tax (VAT) | Output VAT is calculated on product sales | 3% - 13% |
and taxable services revenue. The basis for | ||
VAT payable is to deduct input VAT from | ||
the output VAT for the period. | ||
City maintenance and | Based on VAT payable | 1% - 7% |
construction tax | ||
Education surcharge | Based on VAT payable | 2% - 3% |
Local Education surcharge | Based on VAT payable | 1% - 2% |
Income tax | Based on taxable profits | 25% (i) |
(i)
The income tax rate applicable to the Company and its subsidiaries in the Mainland China
is 25% (2023: 25%). The income tax rate applicable to subsidiaries in Hong Kong is
16.5% (2023: 16.5%). The federal income tax of subsidiaries in the United States were
provided at the rate of 21% (2023: 21%). Taxes of other overseas subsidiaries are charged
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 60 -
Fee and commission income
Year ended 31 December | ||
2024 | 2023 | |
Income from securities brokerage and advisory business | 8,549,351 | 7,870,599 |
Income from asset management business | 4,810,453 | 6,422,832 |
Income from underwriting and sponsorship business | 1,891,474 | 2,980,061 |
Income from futures brokerage business | 1,561,096 | 1,188,621 |
Income from financial advisory business | 252,241 | 238,015 |
Other commission income | 194,721 | 240,854 |
Total | 17,259,336 | 18,940,982 |
Interest income
Year ended 31 December | ||
2024 | 2023 | |
Interest income from margin financing and securities | ||
lending | 6,773,051 | 7,839,468 |
Interest income from financial institutions | 4,417,006 | 4,325,319 |
Interest income from debt instruments at amortised cost | 1,455,189 | 1,445,973 |
Interest income from securities-backed lendings | 146,181 | 273,945 |
Interest income from debt instruments at fair value through | ||
other comprehensive income | 479,387 | 461,396 |
Interest income from other financial assets held under resale | ||
agreements | 274,953 | 247,544 |
Others | 15,227 | 21,587 |
Total | 13,560,994 | 14,615,232 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 61 -
Net investment gains
Year ended 31 December | ||
2024 | 2023 | |
Dividend income and interest income from financial | ||
instruments at fair value through profit or loss | 8,976,586 | 8,068,148 |
Net realised gains from disposal of subsidiaries | 6,335,547 | - |
Net realised gains/(losses) from disposal of derivative | ||
financial instruments | 2,249,924 | (8,941,901) |
Net realised gains from disposal of financial instruments at | ||
fair value through profit or loss | 1,690,391 | 11,639,856 |
Net realised gains/(losses) from disposal of debt instruments | ||
at fair value through other comprehensive income | 101,101 | (80,389) |
Dividend income from financial instruments at fair value | ||
through other comprehensive income | 8,800 | - |
Unrealised fair value changes of derivative financial | ||
instruments | (988,058) | (6,518,537) |
Unrealised fair value changes of financial instruments at fair | ||
value through profit or loss | (3,873,533) | 7,493,050 |
Other investment gains | - | 10,173 |
Total | 14,500,758 | 11,670,400 |
Other income and gains
Year ended 31 December | ||
2024 | 2023 | |
Income from commodity sales | 7,860,243 | 4,890,072 |
Government grants (i) | 193,172 | 306,922 |
Rental income | 23,335 | 30,709 |
Gains on disposal of property and equipment | 3,930 | 1,525 |
Gain on acquiring interest in an associate | - | 239,728 |
Foreign exchange gain | 750,297 | 1,322,894 |
Others | 133,418 | 241,957 |
Total | 8,964,395 | 7,033,807 |
(i)
The government grants were received unconditionally by the Company and its
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 62 -
Fee and commission expenses
Year ended 31 December | ||
2024 | 2023 | |
Expenses for securities brokerage and advisory business | 2,512,392 | 2,366,556 |
Expenses for futures brokerage business | 1,084,258 | 619,462 |
Expenses for asset management business | 664,112 | 1,158,376 |
Expenses for underwriting and sponsorship business | 46,564 | 180,253 |
Expenses for financial advisory business | 330 | 943 |
Other commission expenses | 3,321 | 2,700 |
Total | 4,310,977 | 4,328,290 |
Interest expenses
Year ended 31 December | ||
2024 | 2023 | |
Interest expenses on long-term bonds | 4,752,586 | 4,876,439 |
Interest expenses on financial assets sold under repurchase | ||
agreements | 3,411,098 | 3,954,529 |
Interest expenses on placements from banks and other | ||
financial institutions | 777,410 | 1,935,432 |
Interest expenses on short-term debt instruments issued | 525,412 | 704,782 |
Interest expenses of accounts payable to brokerage clients | 830,502 | 1,187,166 |
Interest expenses on short-term bank loans | 220,685 | 597,601 |
Interest expenses on lease liabilities | 50,632 | 63,271 |
Interest expenses on long-term bank loans | 34,669 | 59,122 |
Others | 253,430 | 284,567 |
Total | 10,856,424 | 13,662,909 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 63 -
Staff costs
Year ended 31 December | |||
Note | 2024 | 2023 | |
Salaries, bonuses and allowances | 8,025,434 | 7,245,418 | |
Contribution to pension schemes | 899,117 | 942,195 | |
Share-based payment expense | 63 | 101,204 | 187,494 |
Other social welfare | 1,048,866 | 996,735 | |
Total | 10,074,621 | 9,371,842 | |
The domestic employees of the Group in the PRC participate in social welfare plans, including
pension, medical, housing, and other welfare benefits, organised and administered by the
governmental authorities. According to the relevant regulations, the premiums and welfare
benefits contributions that should be borne by the Group are calculated on a regular basis and
paid to the labour and social welfare authorities. The contributions to the social security plans
are expensed as incurred.
The Group provides its full-time employees in Mainland China and certain countries or
jurisdictions outside Mainland China with relevant pension plans as required by the governments
or by local labour laws, including the basic pension plan in Mainland China, the Mandatory
Provident Funds in Hong Kong and other statutory plans in certain countries outside Mainland
China. The Group did not have any forfeited contributions under these pension plans.
The Group also provides an enterprise annuity plan to employees in Mainland China. According
to the plan, when an employee resigns, part of the contributed amount may be returned to the
Company's enterprise annuity account based on his/her actual working time. Such returned
contributions had no impact on the level of annuity contributions for existing employees. The
Group did not utilise any of such forfeited contributions to reduce the existing level of
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 64 -
Depreciation and amortisation expenses
Year ended 31 December | ||
2024 | 2023 | |
Amortisation of land-use rights and other intangible assets | 556,849 | 571,151 |
Depreciation of property and equipment | 1,073,402 | 1,123,754 |
- Right-of-use assets | 547,296 | 590,215 |
- Other property and equipment | 526,106 | 533,539 |
Amortisation of leasehold improvements and long-term | ||
deferred expenses | 136,768 | 151,130 |
Depreciation of investment properties | 7,592 | 10,374 |
Total | 1,774,611 | 1,856,409 |
Tax and surcharges
Year ended 31 December | ||
2024 | 2023 | |
City maintenance and construction tax | 67,642 | 71,367 |
Education surcharges | 49,472 | 52,929 |
Others | 62,303 | 63,368 |
Total | 179,417 | 187,664 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 65 -
Other operating expenses
Year ended 31 December | ||
2024 | 2023 | |
Cost of commodity sales | 7,947,202 | 4,935,251 |
IT expenses | 2,025,726 | 2,283,005 |
Consulting fees | 490,561 | 352,224 |
Marketing, advertising and promotion expenses | 423,647 | 482,319 |
Stock exchange fees | 366,592 | 476,254 |
Postal and communication expenses | 326,875 | 322,632 |
Travel expenses | 318,539 | 377,100 |
Litigation and regulatory matters(Note58) | 176,067 | 700,119 |
Securities investor protection funds | 106,242 | 110,900 |
Utilities | 65,681 | 68,409 |
Products distribution expenses | 54,924 | 55,377 |
Rental expenses | 31,234 | 39,142 |
Auditors' remuneration | 12,578 | 12,022 |
Others | 1,498,909 | 1,429,619 |
Total | 13,844,777 | 11,644,373 |
Impairment losses under expected credit loss model, net of reversal
Year ended 31 December | ||
2024 | 2023 | |
Reversal of impairment losses against cash and bank balances | (190) | (290) |
Provision for impairment losses against cash held on behalf of brokerage clients | 15 | - |
Provision for / (reversal of) impairment losses against | ||
margin accounts receivable | 242,700 | (6,325) |
Provision for impairment losses against other receivables | ||
and interest receivable | 4,453 | 23,917 |
(Reversal of) /provision for impairment losses against debt | ||
instruments at amortised cost | (125) | 367 |
(Reversal of) /provision for impairment losses against | ||
financial assets at fair value through other comprehensive | ||
income | (32,659) | 11,753 |
Reversal of impairment losses against financial assets held | ||
under resale agreements | (36,155) | (485,801) |
Provision for impairment losses against accounts receivable | 68,230 | 45,433 |
Total | 246,269 | (410,946) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 66 -
Income tax expense
(a)
Taxation in the consolidated income statements represents:
Year ended 31 December | ||
2024 | 2023 | |
Current income tax | ||
- Mainland China | 882,656 | 1,080,281 |
- Hong Kong | 73,273 | 128,348 |
- Overseas | 309,284 | 321,369 |
1,265,213 | 1,529,998 | |
Adjustment in respect of prior years | ||
- Mainland China | (27,219) | (28,198) |
Deferred tax | (1,404,528) | (333,396) |
Total | (166,534) | 1,168,404 |
(1)
According to the PRC Corporate Income Tax ("CIT") Law that took effect on 1 January
2008, the Company and the Group's subsidiaries in the Mainland China are subject to
CIT at the statutory tax rate of 25%.
(2)
Hong Kong profits tax has been provided at the rate of 16.5% on the estimated assessable
profits. The federal income tax of subsidiaries in the United States were provided at the
rate of 21%, whereas the states' income tax are charged at the applicable local tax rates.
(3)
As at 31 December 2024, the profits from jurisdictions where the Pillar Two legislation
is enacted or substantially enacted but not yet in effect is less than 0.1 per cent of the
Group's total profits. The Group is continuing to assess the impact of the Pillar Two
income taxes legislation on its future financial performance.
The Group has applied the temporary mandatory exception for recognising and
disclosing deferred tax assets and liabilities for the impacts of the top-up tax and accounts
for it as a current tax when it is incurred.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
15.
Income tax expense
- continued
- 67 -
(b)
Reconciliation between income tax expense and accounting profit at applicable tax rate:
Year ended 31 December | ||
2024 | 2023 | |
Profit before income tax | 15,352,340 | 14,204,664 |
Notional tax calculated using the PRC statutory tax rate | 3,838,085 | 3,551,166 |
Tax effect of non-deductible expenses | 190,172 | 274,688 |
Tax effect of non-taxable income | (2,522,090) | (2,302,220) |
Tax effect of deductible temporary differences or unused | ||
tax losses not recognised | 9,214 | 544 |
Effect of using the deductible tax losses for which no | ||
deferred tax asset was recognised in previous period | (5,054) | (10,033) |
Effect of different tax rates of the subsidiaries | (1,420,405) | (141,529) |
Adjustment in respect of prior years | (27,219) | (28,198) |
Others (Note) | (229,237) | (176,014) |
Income tax expense for the year | (166,534) | 1,168,404 |
Note: The balance of others mainly represents tax impact of dividends to perpetual
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 68 -
Directors' and supervisors' remuneration
The remuneration of directors and supervisors for current year who held office is as follows:
| Year ended 31 December 2024 | |||||
Salaries, allowances | Contribution | ||||
and benefits | to pension | Annuity | |||
Name | Directors' fees | in kind | schemes | plan | Total |
Executive directors | |||||
Zhang Wei | - | 812 | 47 | 219 | 1,078 |
Zhou Yi | - | 1,440 | 47 | 151 | 1,638 |
Yin lihong | - | 731 | 47 | 153 | 931 |
Non-executive directors | |||||
Ding Feng (1) | - | - | - | - | - |
Chen Zhongyang (1) | - | - | - | - | - |
Ke Xiang (1) | - | - | - | - | - |
Zhang Jin Xin (1) | - | - | - | - | - |
Liu Changchun (1)(3) | - | - | - | - | - |
Independent non-executive | |||||
directors | |||||
Wang Jianwen | 240 | - | - | - | 240 |
Wang Quansheng | 240 | - | - | - | 240 |
Peng Bing | 240 | - | - | - | 240 |
Wang Bing | 240 | - | - | - | 240 |
Tse Yung Hoi (5) | 120 | - | - | - | 120 |
Lo Kin Wing Terry (4) | 140 | - | - | - | 140 |
Supervisors | |||||
Gu Chengzhong | - | 1,094 | 47 | 158 | 1,299 |
Li Chongqi (1)(5) | - | - | - | - | - |
Yu Lanying (1) | - | - | - | - | - |
Zhang Xiaohong (1) | - | - | - | - | - |
Zhou Hongrong (1) | - | - | - | - | - |
Wang Ying | - | 1,003 | 47 | 83 | 1,133 |
Wang Juan | - | 652 | 47 | 73 | 772 |
Lv Wei (1)(4) | - | - | - | - | - |
Total | 1,220 | 5,732 | 282 | 837 | 8,071 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
16.
Directors' and supervisors' remuneration
- continued
- 69 -
| Year ended 31 December 2023 | |||||
Salaries, allowances | Contribution | ||||
and benefits | to pension | Annuity | |||
Name | Directors' fees | in kind | schemes | plan | Total |
Executive directors | |||||
Zhang Wei | - | 802 | 46 | 167 | 1,015 |
Zhou Yi | - | 1,440 | 46 | 147 | 1,633 |
Yin lihong | - | 722 | 46 | 148 | 916 |
Non-executive directors | |||||
Ding Feng (1) | - | - | - | - | - |
Chen Zhongyang (1) | - | - | - | - | - |
Ke Xiang (1) | - | - | - | - | - |
Liu Changchun (1)(3) | - | - | - | - | - |
Zhang Jin Xin (1) | - | - | - | - | - |
Hu Xiao (1)(2) | - | - | - | - | - |
Independent non-executive | |||||
directors | |||||
Wang Jianwen | 240 | - | - | - | 240 |
Wang Quansheng | 240 | - | - | - | 240 |
Peng Bing | 240 | - | - | - | 240 |
Wang Bing | 240 | - | - | - | 240 |
Tse Yung Hoi | 240 | - | - | - | 240 |
Supervisors | |||||
Gu Chengzhong | - | 1,079 | 46 | 155 | 1,280 |
Li Chongqi (1) | - | - | - | - | - |
Yu Lanying (1) | - | - | - | - | - |
Zhang Xiaohong (1) | - | - | - | - | - |
Zhou Hongrong (1) | - | - | - | - | - |
Wang Ying | - | 996 | 46 | 80 | 1,122 |
Wang Juan | - | 621 | 46 | 71 | 738 |
Total | 1,200 | 5,660 | 276 | 768 | 7,904 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
16.
Directors' and supervisors' remuneration
- continued
- 70 -
(1)
The remunerations of these non-executive directors and supervisors of the Company
were borne by its shareholders and other related parties including Jiangsu Guoxin
Investment Group Limited, Jiangsu Communications Holdings Co., Ltd., Jiangsu SOHO
Holdings Group Co., Ltd. and Jiangsu Govtor Capital Group Co., Ltd., etc. No allocation
of the remunerations between these shareholders and the Group has been made during
the reporting period.
(2)
Resigned as non-executive director on 19 September 2023.
(3)
Appointed as non-executive director on 24 November 2023.
(4)
Appointed as independent non-executive director or supervisor on 20 June 2024.
(5)
Resigned as independent non-executive director or supervisor on 20 June 2024.
(6)
For the year ended 31 December 2024, in addition to remuneration of directors and
supervisors as disclosed above, the Company recognised share-based payment expense
amounted to RMB 663 thousand, for the restricted shares granted to Zhou Yi under
Restricted Share Incentive Scheme of A Shares (for the year ended 31 December 2023:
RMB1,389 thousand).
The total pre-tax remuneration in the table represents the compensation accrued and paid during
the year 2024 and 2023, respectively, which was received by the directors or supervisors during
their tenure in the relevant positions. The total compensation packages of the directors and
supervisors for the fiscal year 2024 have not been finalised and will be further disclosed when
they are confirmed. The finalised bonus of the directors and supervisors for the fiscal year 2023
are as follows: Zhang Wei 644 thousand, Zhou Yi 2,310 thousand, Yin Lihong 578 thousand,
Gu Chengzhong 2,341 thousand, Wang Ying 1,274 thousand, Wang Juan 1,599 thousand.
There were no amounts paid during the year ended 31 December 2024 to the directors and
supervisors in connection with their retirement from employment or compensation for loss of
office with the Company, or inducement to join. During the year, there was no arrangement
under which a director or a supervisor who had resigned waived or agreed to waive any
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 71 -
Individuals with highest emoluments
Of the five individuals with the highest emoluments, none are directors or supervisors whose
emoluments are disclosed in Note 16. The aggregate of the emoluments are as follows:
Year ended 31 December | ||
2024 | 2023 | |
Salaries and allowances | 12,768 | 11,272 |
Discretionary bonuses | 37,928 | 70,652 |
Employer's contribution to pension schemes | 262 | 82 |
Share-based payments | 525 | 868 |
Total | 51,483 | 82,874 |
The emoluments with the highest emoluments are within the following bands:
Year ended 31 December | ||
2024 | 2023 | |
Number of | Number of | |
individuals | individuals | |
RMB8,000,001 to RMB9,000,000 | 2 | - |
RMB9,000,001 to RMB10,000,000 | 1 | - |
RMB10,000,001 to RMB11,000,000 | 1 | 1 |
Over RMB11,000,000 | 1 | 4 |
Total | 5 | 5 |
No emoluments are paid or payable to these individuals as retirement from employment or as an
inducement to join or upon joining the Company or as compensation for loss of office during the
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 72 -
Other comprehensive income
Year ended 31 December 2024 | |||
Before tax | Tax expense | Net of tax | |
Net gain from debt instruments at FVOCI | 58,221 | (12,120) | 46,101 |
Equity instruments at FVOCI: | |||
- Net movements in fair value reserve | |||
(non-recycling) | (15) | 97 | 82 |
Reserve from cash flow hedging | |||
instruments | (83,916) | - | (83,916) |
Share of other comprehensive income of | |||
associates and joint ventures | 367,987 | - | 367,987 |
Exchange differences on translation of | |||
financial statements in foreign | |||
currencies | 267,501 | - | 267,501 |
Total | 609,778 | (12,023) | 597,755 |
Year ended 31 December 2023 | |||
Before tax | Tax expense | Net of tax | |
Net gain from debt instruments at FVOCI | 106,977 | (22,779) | 84,198 |
Equity instruments at FVOCI: | |||
- Net movements in fair value reserve | |||
(non-recycling) | 17,759 | (4,760) | 12,999 |
Reserve from cash flow hedging | |||
instruments | (3,571) | - | (3,571) |
Share of other comprehensive income of | |||
associates and joint ventures | (40,580) | - | (40,580) |
Exchange differences on translation of | |||
financial statements in foreign | |||
currencies | 262,953 | - | 262,953 |
Total | 343,538 | (27,539) | 315,999 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 73 -
Basic and diluted earnings per share
(1)
Basic earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable to ordinary
shareholders of the Company by the weighted average number of ordinary shares outstanding:
Year ended 31 December | |||
Note | 2024 | 2023 | |
Consolidated net profit attributable to ordinary | |||
shareholders of the Company (in RMB | |||
thousands) | 19(1)(a) | 14,635,336 | 12,167,133 |
Weighted average number of ordinary shares | |||
(in thousands) | 19(1)(b) | 9,009,279 | 8,996,366 |
Basic earnings per share attributable to ordinary | |||
shareholders (in RMB per share) | 1.62 | 1.35 | |
(a)
Consolidated net profit attributable to ordinary shareholders of the Company (in RMB
thousands)
Year ended 31 December | ||
2024 | 2023 | |
Consolidated net profit attributable to equity shareholders of | ||
the Company | 15,351,162 | 12,750,633 |
Dividends declared under Restricted Share Incentive | ||
Scheme of A Shares | (7,960) | (12,507) |
Profit attributable to perpetual subordinated bonds holders | ||
of the Company (i) | (707,866) | (570,993) |
Consolidated net profit attributable to ordinary shareholders | ||
of the Company (Adjusted) | 14,635,336 | 12,167,133 |
(i)
For the purpose of calculating basic earnings per ordinary share in respect of the year
ended 31 December 2024, RMB 708 million (2023: RMB 571million) attributable to
perpetual subordinated bonds were deducted from profits attributable to shareholders of
the Company.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
19.
Basic and diluted earnings per share
- continued
(1)
Basic earnings per share
- continued
- 74 -
(b)
Weighted average number of ordinary shares (in thousands)
Year ended 31 December | ||
2024 | 2023 | |
Number of ordinary shares as at 1 January | 9,074,663 | 9,075,589 |
Decrease in weighted average number of ordinary shares | (65,384) | (79,223) |
Weighted average number of ordinary shares | 9,009,279 | 8,996,366 |
(2)
Diluted earnings per share
Diluted earnings per share is calculated as dividing consolidated net profit attributable to
ordinary shareholders of the Company (diluted) by the weighted average number of ordinary
shares outstanding:
Year ended 31 December | |||
Note | 2024 | 2023 | |
Consolidated net profit attributable to ordinary | |||
shareholders of the Company (diluted) | 19(2)(a) | 14,638,263 | 11,984,829 |
Weighted average number of ordinary shares | |||
outstanding (in thousands) | 19(2)(b) | 9,016,227 | 9,006,563 |
Diluted earnings per share attributable to | |||
ordinary shareholders (in Renminbi per share) | 1.62 | 1.33 | |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
19.
Basic and diluted earnings per share
- continued
(2)
Diluted earnings per share
- continued
- 75 -
(a)
Consolidated net profit attributable to ordinary shareholders of the Company (diluted) is
calculated as follows:
Year ended 31 December | ||
2024 | 2023 | |
Consolidated net profit attributable to ordinary shareholders | ||
of the Company (Adjusted) | 14,635,336 | 12,167,133 |
Diluted adjustments: | ||
Effect of dividends declared under Restricted Stock | ||
Incentive Scheme of A Shares(i) | 7,960 | 12,507 |
Effect of conversion of convertible bonds from the associate | ||
of the Company (ii) | - | (192,227) |
Assumed vesting of shares granted to employees of a | ||
subsidiary (iii) | (5,033) | (2,584) |
Consolidated net profit attributable to ordinary shareholders | ||
of the Company (diluted) | 14,638,263 | 11,984,829 |
(i)
The Group granted Restricted Stock Incentive Scheme of A shares to certain employees
in 2021. Diluted earnings per share should take into account both the impact of the cash
dividend of the current period distributed to the holders of restricted shares who are
expected to reach the unlocking conditions and estimate number of restricted shares
which will be unlocked. After considering the abovementioned impact, the Restricted
Stock Incentive Scheme has a dilutive effect for the year ended 31 December 2024 (2023:
dilutive).
(ii)
Bank of Jiangsu Co., Ltd. ("Bank of Jiangsu"), the associate of the Company issued
convertible bonds in 2019. Diluted earnings per share takes into account the potential
dilutive impact on the Group's share of profits of this associate due to the potential full
conversion of bonds to shares. The convertible bond was fully redeemed and delisted in
October 2023.
(iii)
The dilutive effect is due to the share-based payment schemes of AssetMark Financial
Holdings, Inc. ("AssetMark").
(b)
Weighted average number of ordinary shares outstanding (diluted) is calculated as follows:
Year ended 31 December | ||
2024 | 2023 | |
Weighted average number of ordinary shares at 31 | ||
December | 9,009,279 | 8,996,366 |
Diluted adjustments: | ||
Effect of Restricted Stock Incentive Scheme of A shares | 6,948 | 10,197 |
Weighted average number of ordinary shares(diluted) | 9,016,227 | 9,006,563 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 76 -
Property and equipment
Motor | Electronic | Furniture | Construction | Right-of-use | |||
Buildings | vehicles | equipment | and fixtures | in progress | assets | Total | |
Cost | |||||||
As at 1 January 2024 | 4,848,570 | 156,796 | 2,118,972 | 487,843 | 565,790 | 2,618,734 | 10,796,705 |
Additions | 286 | 686 | 182,403 | 41,811 | 764,068 | 358,395 | 1,347,649 |
Transfer during the year | - | - | 518 | 4,259 | (54,744) | - | (49,967) |
Transfer in from investment | |||||||
properties (Note 21) | 2,163 | - | - | - | - | - | 2,163 |
Disposals | - | (1,790) | (65,211) | (4,524) | - | (289,773) | (361,298) |
Disposal of subsidiaries | - | - | (82,966) | (100,278) | - | (328,811) | (512,055) |
Reclassified as held for sale | - | (1,217) | (3,938) | (744) | - | (7,662) | (13,561) |
As at 31 December 2024 | 4,851,019 | 154,475 | 2,149,778 | 428,367 | 1,275,114 | 2,350,883 | 11,209,636 |
Accumulated depreciation | |||||||
As at 1 January 2024 | (1,392,980) | (102,062) | (1,219,878) | (311,593) | - | (1,250,482) | (4,276,995) |
Charge for the year | (138,159) | (10,752) | (312,865) | (64,330) | - | (547,296) | (1,073,402) |
Transfer in from investment | |||||||
properties (Note 21) | (1,790) | - | - | - | - | - | (1,790) |
Disposals | - | 1,375 | 56,517 | 1,412 | - | 277,395 | 336,699 |
Disposal of subsidiaries | - | - | 68,203 | 54,999 | - | 164,956 | 288,158 |
Reclassified as held for sale | - | 839 | 3,188 | 532 | - | 2,547 | 7,106 |
As at 31 December 2024 | (1,532,929) | (110,600) | (1,404,835) | (318,980) | - | (1,352,880) | (4,720,224) |
Carrying amount | |||||||
As at 31 December 2024 | 3,318,090 | 43,875 | 744,943 | 109,387 | 1,275,114 | 998,003 | 6,489,412 |
Motor | Electronic | Furniture | Construction | Right-of-use | |||
Buildings | vehicles | equipment | and fixtures | in progress | assets | Total | |
Cost | |||||||
As at 1 January 2023 | 4,689,613 | 161,582 | 1,917,816 | 424,009 | 195,750 | 2,515,403 | 9,904,173 |
Additions | 33,595 | 8,154 | 274,094 | 90,614 | 471,520 | 612,601 | 1,490,578 |
Transfer during the year | - | - | 650 | 5,811 | (101,480) | - | (95,019) |
Transfer in from investment | |||||||
properties (Note 21) | 125,660 | - | - | - | - | - | 125,660 |
Disposals | (298) | (12,940) | (73,588) | (32,591) | - | (509,270) | (628,687) |
As at 31 December 2023 | 4,848,570 | 156,796 | 2,118,972 | 487,843 | 565,790 | 2,618,734 | 10,796,705 |
Accumulated depreciation | |||||||
As at 1 January 2023 | (1,202,470) | (92,247) | (945,500) | (271,132) | - | (1,105,441) | (3,616,790) |
Charge for the year | (135,906) | (17,200) | (326,871) | (53,562) | - | (590,215) | (1,123,754) |
Transfer in from investment | |||||||
properties (Note 21) | (54,732) | - | - | - | - | - | (54,732) |
Disposals | 128 | 7,385 | 52,493 | 13,101 | - | 445,174 | 518,281 |
As at 31 December 2023 | (1,392,980) | (102,062) | (1,219,878) | (311,593) | - | (1,250,482) | (4,276,995) |
Carrying amount | |||||||
As at 31 December 2023 | 3,455,590 | 54,734 | 899,094 | 176,250 | 565,790 | 1,368,252 | 6,519,710 |
As at 31 December 2024, included in buildings, there is a carrying amount of RMB 35.27 million
for which the Group has yet to obtain the relevant land or building certificates (as at 31 December
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 77 -
Investment properties
As at 31 December | ||
2024 | 2023 | |
Cost | ||
As at 1 January | 262,472 | 388,132 |
Transfer in from other current assets (Note 36) | 79,925 | - |
Transfer to property and equipment (Note 20) | (2,163) | (125,660) |
As at 31 December | 340,234 | 262,472 |
Accumulated depreciation | ||
As at 1 January | (121,641) | (165,999) |
Charge for the year | (7,592) | (10,374) |
Transfer to property and equipment (Note 20) | 1,790 | 54,732 |
As at 31 December | (127,443) | (121,641) |
Impairment | ||
As at 1 January | (4,547) | (4,547) |
Transfer in from other current assets (Note 36) | (26,113) | - |
As at 31 December | (30,660) | (4,547) |
Carrying amount | 182,131 | 136,284 |
As at 31 December 2024, included in investment properties, there is a carrying amount of RMB
4.00 million, for which the Group has yet to obtain the relevant land or building certificates (as
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 78 -
Goodwill
Cost | |
As at 1 January 2024 | 3,419,332 |
Disposal of subsidiaries | (3,367,990) |
As at 31 December 2024 | 51,342 |
Impairment losses | |
As at 1 January 2024 | - |
Impairment losses | - |
As at 31 December 2024 | - |
Carrying amounts | |
As at 1 January 2024 | 3,419,332 |
As at 31 December 2024 | 51,342 |
Cost | |
As at 1 January 2023 | 3,352,219 |
Adjustment of acquisition through business combination | 14,631 |
Effect of movements in exchange rates | 52,482 |
As at 31 December 2023 | 3,419,332 |
Impairment losses | |
As at 1 January 2023 | - |
Impairment losses | - |
As at 31 December 2023 | - |
Carrying amounts | |
As at 1 January 2023 | 3,352,219 |
As at 31 December 2023 | 3,419,332 |
The Group acquired the investment banking business together with the relevant assets and
liabilities, and the interest in Huatai United Securities Co., Ltd. in 2006. The Group recognised
the excess of fair value of the consideration transferred over the fair value of the net identifiable
assets acquired as goodwill.
The Group acquired the futures brokerage business together with the relevant assets and
liabilities, and the interest in Huatai Futures Co., Ltd. (previously known as Great Wall Futures
Co., Ltd.) in 2006. The Group recognised the excess of fair value of the consideration transferred
over the fair value of the net identifiable assets acquired as goodwill.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
22.
Goodwill
- continued
- 79 -
The Group acquired the overseas asset management business together with the relevant assets
and liabilities, and the interest in AssetMark Financial Holdings, Inc. ("Assetmark") in 2016.
The Group recognised the excess of fair value of the consideration transferred over the fair value
of the net identifiable assets acquired as goodwill. In 2024, Huatai International Investment
Holding Co., Ltd., the wholly-owned overseas subsidiary of the Company, sold all of the
common shares it held in AssetMark, and the relevant goodwill amounting to RMB 3,367,990
thousand is written off accordingly. The details of the disposal transaction are disclosed in Note
24(b).
AssetMark Financial Holdings, Inc. acquired 100% of the equity of Global Financial Private
Capital, Inc. in April 2019. The Group recognised the excess of fair value of the consideration
transferred over the fair value of the net identifiable assets acquired as goodwill of Global
Financial Private Capital, Inc.. In 2024, Huatai International Investment Holding Co., Ltd., the
wholly-owned overseas subsidiary of the Company, sold all of the common shares it held in
AssetMark, and the relevant goodwill is written off accordingly.
AssetMark Financial Holdings, Inc. acquired 100% of the equity of WBI OBS Financial, Inc. in
February 2020. The Group recognised the excess of fair value of the consideration transferred
over the fair value of the net identifiable assets acquired as goodwill of WBI OBS Financial, Inc..
In 2021, the Group adjusts its organizational structure. AssetMark Financial Holdings, Inc. 's
subsidiary, AssetMark, Inc., merged WBI OBS Financial, LLC. Considering this is a
combination under the same control, the goodwill remains unchanged. In 2024, Huatai
International Investment Holding Co., Ltd., the wholly-owned overseas subsidiary of the
Company, sold all of the common shares it held in AssetMark, and the relevant goodwill is
written off accordingly.
AssetMark Financial Holdings, Inc. acquired 100% of the equity of Voyant, Inc. in July 2021.
The Group recognised the excess of fair value of the consideration transferred over the fair value
of the net identifiable assets acquired as goodwill of Voyant, Inc.. In 2024, Huatai International
Investment Holding Co., Ltd., the wholly-owned overseas subsidiary of the Company, sold all
of the common shares it held in AssetMark, and the relevant goodwill is written off accordingly.
AssetMark Financial Holdings, Inc. acquired 100% of the equity of Adhesion Wealth Advisor
Solutions, Inc. in December 2022. The Group recognised the excess of fair value of the
consideration transferred over the fair value of the net identifiable assets acquired as goodwill
of Adhesion Wealth Advisor Solutions, Inc.. During the year of 31 December 2023, the
AssetMark Financial Holdings, Inc. finalized the valuation of identifiable assets and liabilities
and goodwill and completed the acquisition accounting. In 2024, Huatai International
Investment Holding Co., Ltd., the wholly-owned overseas subsidiary of the Company, sold all
of the common shares it held in AssetMark, and the relevant goodwill is written off accordingly.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
22.
Goodwill
- continued
- 80 -
Goodwill is allocated to the Group's cash-generating units ("CGU") identified according to
operating segment as follows:
As at 31 December | ||
2024 | 2023 | |
Investment banking | 51,090 | 51,090 |
Futures brokerage | 252 | 252 |
Overseas asset management | - | 3,367,990 |
Total | 51,342 | 3,419,332 |
For the investment banking and futures brokerage CGU, the cash flows generated from each
subsidiary acquired are independent. Therefore, each of these acquired subsidiaries is a separate
CGU. The Group performed the impairment test for the goodwill generated from each CGU.
(1)
Investment banking and futures brokerage CGU
The recoverable amounts of each CGU are determined based on value-in-use calculations,
respectively. These calculations use cash flow projections with reference to financial budgets
approved by management covering certain period. Cash-flows beyond the certain period are
extrapolated using an estimated weighted average growth rate, which does not exceed the long-
term average growth rate. As at 31 December 2024, the discount rate used by the investment
banking and futures brokerage CGUs were 16.00% and 13.33%, respectively (16.00% and
16.39%, respectively, as at 31 December 2023), and the weighted average growth rate were 5.00%
and 6.60%, respectively (5.00% and 6.60%, respectively, as at 31 December 2023). The discount
rate and weighted average growth rate reflected the risks and growth expectations of the relevant
CGUs.
Other major assumptions for the recoverable amount estimation relate to the estimation of cash
inflows / outflows which include budgeted income and profit margins. Such estimation is based
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 81 -
Land-use rights and other intangible assets
Enterprise | ||||||
Existing | distribution | |||||
relationships | channel | |||||
Land- | with broker- | customer | Software | |||
use rights | dealers | relationships | Trade names | and others | Total | |
Cost | ||||||
As at 1 January 2024 | 1,768,330 | 4,011,405 | 195,859 | 355,792 | 4,696,188 | 11,027,574 |
Additions | - | - | - | - | 601,230 | 601,230 |
Disposals | - | - | - | - | (1,228) | (1,228) |
Disposal of subsidiaries | - | (4,102,171) | (201,988) | (364,190) | (2,631,825) | (7,300,174) |
Reclassified as held for sale | - | - | - | - | (6,122) | (6,122) |
Exchange differences | - | 90,766 | 6,129 | 8,398 | 60,233 | 165,526 |
As at 31 December 2024 | 1,768,330 | - | - | - | 2,718,476 | 4,486,806 |
Accumulated amortisation | ||||||
As at 1 January 2024 | (200,089) | - | - | (203,590) | (3,108,635) | (3,512,314) |
Charge for the year | (41,771) | - | - | (2,950) | (546,639) | (591,360) |
Disposals | - | - | - | - | 1,228 | 1,228 |
Disposal of subsidiaries | - | - | - | 211,481 | 1,479,708 | 1,691,189 |
Reclassified as held for sale | - | - | - | - | 5,297 | 5,297 |
Exchange differences | - | - | - | (4,941) | (40,006) | (44,947) |
As at 31 December 2024 | (241,860) | - | - | - | (2,209,047) | (2,450,907) |
Carrying amount | ||||||
As at 31 December 2024 | 1,526,470 | - | - | - | 509,429 | 2,035,899 |
Enterprise | ||||||
Existing | distribution | |||||
relationships | channel | |||||
Land- | with broker- | customer | Software | |||
use rights | dealers | relationships | Trade names | and others | Total | |
Cost | ||||||
As at 1 January 2023 | 1,768,330 | 3,931,667 | 242,226 | 348,720 | 4,087,137 | 10,378,080 |
Adjustment of acquisition | ||||||
through business | ||||||
combination | - | - | (50,287) | - | - | (50,287) |
Additions | - | - | - | - | 603,829 | 603,829 |
Disposals | - | - | - | - | (44,197) | (44,197) |
Exchange differences | - | 79,738 | 3,920 | 7,072 | 49,419 | 140,149 |
As at 31 December 2023 | 1,768,330 | 4,011,405 | 195,859 | 355,792 | 4,696,188 | 11,027,574 |
Accumulated amortisation | ||||||
As at 1 January 2023 | (158,886) | - | - | (178,508) | (2,600,870) | (2,938,264) |
Charge for the year | (41,203) | - | - | (21,035) | (524,401) | (586,639) |
Disposals | - | - | - | - | 42,097 | 42,097 |
Exchange differences | - | - | - | (4,047) | (25,461) | (29,508) |
As at 31 December 2023 | (200,089) | - | - | (203,590) | (3,108,635) | (3,512,314) |
Carrying amount | ||||||
As at 31 December 2023 | 1,568,241 | 4,011,405 | 195,859 | 152,202 | 1,587,553 | 7,515,260 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 82 -
Investments in subsidiaries
(a)
Details of principal subsidiaries
The following list contains only the particulars of subsidiaries which principally affected the results, assets or liabilities of the Group. Unless otherwise
stated, the class of shares hold is ordinary, and the issued and fully paid-up capital is expressed in Renminbi Yuan:
Place and date of | |||||||
Incorporation / | Issued and fully | Equity interest held by the Company | Auditor (1) | ||||
Name of company | establishment and business | paid-up capital | as at 31 December | Principal activity | GAAP | ||
2024 | 2023 | 2024 | 2023 | ||||
PRC | RMB | Investment | Deloitte PRC | Deloitte PRC | |||
Huatai United Securities Co., Ltd. (4) | 5 September 1997 | 997,480,000 | 100.00% | 100.00% | banking | PRC GAAP | PRC GAAP |
PRC | RMB | Futures | Deloitte PRC | Deloitte PRC | |||
Huatai Futures Co., Ltd. (4) | 10 July 1995 | 3,939,000,000 | 100.00% | 100.00% | brokerage | PRC GAAP | PRC GAAP |
PRC | RMB | Equity | Deloitte PRC | Deloitte PRC | |||
Huatai Purple Gold Investment Co., Ltd. (4) | 12 August 2008 | 5,200,000,000 | 100.00% | 100.00% | investment | PRC GAAP | PRC GAAP |
Hong Kong | HKD | Securities | Deloitte | Deloitte | |||
Huatai Financial Holdings (Hong Kong) Limited (2) | 23 November 2006 | 8,800,000,000 | 100.00% | 100.00% | and futures brokerage | HKFRSs | HKFRSs |
Hong Kong | HKD | Holding | Deloitte | Deloitte | |||
Huatai International Financial Holdings Co., Ltd. | 5 April 2017 | 10,200,000,002 | 100.00% | 100.00% | company | HKFRSs | HKFRSs |
PRC | RMB | Alternative | Deloitte PRC | Deloitte PRC | |||
Huatai Innovative Investment Co., Ltd. (4) | 21 November 2013 | 2,600,000,000 | 100.00% | 100.00% | investment | PRC GAAP | PRC GAAP |
PRC | RMB | Asset | Deloitte PRC | Deloitte PRC | |||
Huatai Securities (Shanghai) Assets Management Co., Ltd. (4) | 16 October 2014 | 2,600,000,000 | 100.00% | 100.00% | management | PRC GAAP | PRC GAAP |
PRC | RMB | Equity | Deloitte PRC | Deloitte PRC | |||
Beijing Huatai Ruihe Medical Industry Investment (Limited Partnership) (2)(3)(5) | 1 June 2015 | - | 45.00% | 45.00% | investment | PRC GAAP | PRC GAAP |
PRC | RMB | Equity | Deloitte PRC | Deloitte PRC | |||
Yili Suxin Investment Fund (Limited Partnership) (2)(3)(5) | 19 February 2016 | 1,348,088,000 | 24.73% | 24.73% | investment | PRC GAAP | PRC GAAP |
US | USD | Asset | KPMG LLP | ||||
AssetMark Financial Holdings, Inc. (2) | 1 January 1996 | 73,563 | - | 68.40% | management | N/A | US GAAP |
PRC | RMB | Spread trading and | Deloitte PRC | Deloitte PRC | |||
Huatai Great Wall Capital Management Co., Ltd. (2)(4) | 6 December 2013 | 650,000,000 | 100.00% | 100.00% | commodity warrant trading | PRC GAAP | PRC GAAP |
PRC | RMB | Investment | Deloitte PRC | Deloitte PRC | |||
Huatai Great Wall Investment Management Co., Ltd. (2)(4) | 3 August 2017 | 550,000,000 | 100.00% | 100.00% | management | PRC GAAP | PRC GAAP |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
24.
Investments in subsidiaries
- continued
(a)
Details of principal subsidiaries
- continued
- 83 -
(1)
Auditors of the respective subsidiaries of the Group are as follows:
-
Deloitte PRC represents Deloitte Touche Tohmatsu Certified Public Accountants LLP, a
firm of certified public accountants registered in PRC;
-
Deloitte represents Deloitte Touche Tohmatsu in Hong Kong, a firm of certified public
accountants registered in Hong Kong;
-
KPMG LLP represents KPMG in the United States, a firm of certified public accountants
registered in the United States.
(2)
These subsidiaries are indirectly controlled by the Company.
(3)
As at 31 December 2024, the Company indirectly held less than 50% of the equity of Beijing
Huatai Ruihe Medical Industry Investment (Limited Partnership) and Yili Suxin Investment
Fund (Limited Partnership). According to the articles of partnership agreement, the Company
has the power to control these funds and has the ability to use the power to affect the Company's
variable return amount. Therefore, they are included in the scope of the consolidated financial
statements.
(4)
Company with limited liability in Mainland China.
(5)
Limited partnership in Mainland China.
(b)
Disposal of subsidiaries
AssetMark Financial Holdings, Inc.
Following the approval at the ninth meeting of the sixth board of directors on 25 April 2024, the
Group intended to sell all 50,873,799 common shares held by its wholly-owned overseas
subsidiary, Huatai International Investment Holdings Limited ("Huatai International"), in
AssetMark.
The Group completed the disposal of all shares of AssetMark held by it on September 5, 2024
(New York time) (the "Closing Date"), with the final consideration for the disoposal of
AssetMark being USD 1,793 million (equivalent to RMB 12,755 million). The Group has ceased
to hold any shares in AssetMark since the Closing Date and AssetMark will no longer be
consolidated by the Group.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
24.
Investments in subsidiaries
- continued
(b)
Disposal of subsidiaries
- continued
AssetMark Financial Holdings, Inc.
- continued
- 84 -
Analysis of assets and liabilities over which control was lost:
As at 5 | |
September | |
2024 | |
Property and equipment | 223,897 |
Goodwill | 3,367,990 |
Land-use rights and other intangible assets | 5,608,985 |
Accounts receivable | 176,623 |
Other receivables, prepayments and other current assets | 205,809 |
Financial assets at fair value through profit or loss | 329,516 |
Cash and bank balances | 1,958,446 |
Employee benefits payable | (212,932) |
Other payables and accruals | (704,838) |
Contract liabilities | (361,230) |
Deferred tax liabilities | (993,715) |
Net assets disposed of | 9,598,551 |
Consideration received: | |
Cash received | 12,754,675 |
Total consideration received | 12,754,675 |
Consideration received | 12,754,675 |
Less: net assets disposed of | (9,598,551) |
Non-controlling interests | 3,025,855 |
Reclassification of cumulative translation reserve | |
upon disposal of Assetmark to profit or loss | 153,568 |
Gain on disposal | 6,335,547 |
Net cash inflow arising on disposal: | |
Cash consideration | 12,754,675 |
Less: cash and cash equivalents disposed of | (1,958,446) |
Net cash inflow arising on disposal | 10,796,229 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
24.
Investments in subsidiaries
- continued
- 85 -
A disposal group held for sale
Following the approval at the 14th meeting of the sixth session of the Board of Directors on
December 20, 2024, the Company agreed to transfer its 20% equity interest in Jiangsu Equity
Exchange Center Co., Ltd. ("Jiangsu Equity Exchange Center") to Jiangsu Jincai Investment Co.,
Ltd. Upon completion of the transaction, the Company’s shareholding in Jiangsu Equity
Exchange Center will be reduced to 32%, resulting in the loss of control over the entity.
Consequently, Jiangsu Equity Exchange Center will become an associate of the Company. As of
the end of the reporting period, the closing of this transaction had not yet been finalized, and the
related procedures were progressing as planned. The assets and liabilities of Jiangsu Equity
Exchange Center have been classified as a disposal group held for sale. The equity transfer was
ultimately completed in January 2025.
The net proceeds from the disposal are expected to exceed the net carrying amount of the relevant
assets and liabilities, and accordingly, no impairment loss has been recognised. The major classes
of assets and liabilities of Jiangsu Equity Exchange Center classified as held for sale are as
follows:
As at 31 | |
December 2024 | |
Property and equipment | 6,455 |
Land-use rights and other intangible assets | 825 |
Accounts receivable | 20 |
Other receivables, prepayments and other current assets | 5,357 |
Financial assets at fair value through profit or loss | 318,042 |
Interests in associates | 63,130 |
Deferred tax assets | 12,901 |
Cash and bank balances | 10,109 |
Total assets classified as held for sale | 416,839 |
Accounts payable to brokerage clients | (8,809) |
Employee benefits payable | (61,989) |
Other payables and accruals | (4,604) |
Total liabilities classified as held for sale | (75,402) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 86 -
Interests in associates
As at 31 December | ||
2024 | 2023 | |
Share of net assets | 21,446,915 | 19,496,027 |
As at 31 December 2024 , the Group has pledged the shares of interest in an associate with a
total book value of RMB 5,214 million to China Securities Finance Corporation Limited ("CSF")
for refinancing and supporting the Group's securities lending business (as at 31 December 2023:
RMB4,649 million).
The following list contains only the particulars of material associates, all of which (except that
Bank of Jiangsu has been listed on the Shanghai Stock Exchange) are unlisted corporate entities
whose quoted market price is not available:
| Proportion of owner ship interest | ||||||||||
Registered | Group's effective | Held by the | Held by a | Principal | ||||||
Name of associate | place | Registered capital | interest | Company | subsidiary | activity | ||||
31/12/2024 | 31/12/2023 | 2024/12/31 | 2023/12/31 | 2024/12/31 | 2023/12/31 | 2024/12/31 | 2023/12/31 | |||
Commercial | ||||||||||
Bank of Jiangsu (i) | Nanjing | 18,351,324 | 18,351,324 | 5.03% | 5.03% | 5.03% | 5.03% | - | - | banking |
China Southern Asset | ||||||||||
Management Co., | Fund | |||||||||
Ltd. | Shenzhen | 361,720 | 361,720 | 41.16% | 41.16% | 41.16% | 41.16% | - | - | management |
All the above associates are accounted for using the equity method in the consolidated financial
statements.
(i)
The Company has appointed one director in the board of directors of Bank of Jiangsu.
The Company exercises significant influence over Bank of Jiangsu by participating in
the formulation of financial and operational policies through the director it has appointed.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
25.
Interests in associates
- continued
- 87 -
Summarised financial information of Bank of Jiangsu and China Southern Asset Management
Co., Ltd. which are individually significant associates to the Group are disclosed below:
Bank of Jiangsu
As at 31 December | ||
2024 | 2023 | |
Gross amounts of the associate | ||
Assets | 3,951,814,000 | 3,403,361,837 |
Liabilities | (3,638,475,403) | (3,144,245,806) |
Net assets | 313,338,597 | 259,116,031 |
Year ended 31 December | ||
2024 | 2023 | |
Revenue | 80,815,000 | 74,293,433 |
Profit for the year | 33,258,161 | 30,013,140 |
Other comprehensive income | 6,872,626 | 1,191,493 |
Total comprehensive income | 40,130,787 | 31,204,633 |
Dividend received from the associate | 716,787 | 426,010 |
Carrying amount in the consolidated financial statements | 11,744,260 | 10,577,267 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
25.
Interests in associates
- continued
- 88 -
China Southern Asset Management Co., Ltd.
As at 31 December | ||
2024 | 2023 | |
Gross amounts of the associate | ||
Assets | 17,598,335 | 13,926,073 |
Liabilities | (4,923,657) | (4,303,783) |
Net assets | 12,674,678 | 9,622,290 |
Year ended 31 December | ||
2024 | 2023 | |
Revenue | 7,522,605 | 6,741,416 |
Profit for the year | 2,351,599 | 2,011,255 |
Other comprehensive income / (expense) | 12,028 | (1,412) |
Total comprehensive income | 2,363,627 | 2,009,843 |
Other adjustment | 806,170 | - |
Dividend received from the associate | - | 492,991 |
Reconciled to the Group's interest in the associate: | ||
Net assets of the associate attributable to the parent | ||
company | 12,334,396 | 9,324,416 |
The Group's effective interest | 41.16% | 41.16% |
The Group's share of net assets of the associate | 5,076,837 | 3,837,930 |
Carrying amount in the consolidated financial | ||
statements | 5,076,837 | 3,837,930 |
Aggregate information of associates that are not individually material:
2024 | 2023 | |
Aggregate carrying amount of individually immaterial | ||
associates in the consolidated financial statements | 4,625,818 | 3,874,991 |
Aggregate amounts of the Group's share of those | ||
associates' gains | (231,374) | 265,093 |
Other comprehensive income | - | - |
Total comprehensive income | (231,374) | 265,093 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 89 -
Interests in joint ventures
As at 31 December | ||
2024 | 2023 | |
Unlisted investment in a joint venture at fair value through | ||
profit or loss (i) | 208,769 | 380,612 |
Unlisted investment in a joint venture | 790,344 | 918,793 |
Total | 999,113 | 1,299,405 |
(i)
As at 31 December 2024, the Group elected to measure its investment in Huatai
International Greater Bay Area Investment Fund, L.P. of RMB208.77 million held
through Huatai Financial Holdings (Hong Kong) Limited, a wholly-owned subsidiary, at
fair value through profit or loss as management measured the performance of this joint
venture on a fair value basis.
The following list contains only the particulars of unlisted joint venture, which is accounted for
using the equity method in the consolidated financial statements, and details of the joint venture
as at 31 December 2024 and 31 December 2023 are as follows:
| Proportion of ownership interest | ||||||
Group's | ||||||
Registered | Registered | effective | Held by | Held by | Principal | |
Name of joint venture | place | capital | interest | the Company | a subsidiary | activity |
Huatai Merchants (Jiangsu) | ||||||
Capital Market Investment | ||||||
Fund of Funds (Limited | Equity | |||||
Partnership) (i) | Nanjing | 10,001,000 | 10.00% | - | 10.00% | investment |
(i)
As at 31 December 2024, the Group held 10.00% equity interest of Huatai Merchants
(Jiangsu) Capital Market Investment Fund of Funds (Limited Partnership). Pursuant to
the limited partnership agreement, the Group and a third party contractually agree to
share control of the fund, and have rights to the net assets of the fund. The directors of
the Group consider the fund is jointly controlled by the Group and the third party, and it
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 90 -
Debt instruments at amortised cost
(a)
Analysed by nature:
Non-current
As at 31 December | ||
2024 | 2023 | |
Debt securities | 40,859,525 | 45,409,678 |
Less: impairment losses | (4,761) | (5,096) |
Total | 40,854,764 | 45,404,582 |
Analysed as: | ||
Listed outside Hong Kong | 19,315,669 | 19,508,797 |
Listed inside Hong Kong | 180,622 | 120,049 |
Unlisted | 21,358,473 | 25,775,736 |
Total | 40,854,764 | 45,404,582 |
Current
As at 31 December | ||
2024 | 2023 | |
Debt securities | 6,939,588 | 4,712,633 |
Less: impairment losses | (630) | (403) |
Total | 6,938,958 | 4,712,230 |
Analysed as: | ||
Listed outside Hong Kong | 3,867,704 | 2,291,361 |
Listed inside Hong Kong | - | 14,921 |
Unlisted | 3,071,254 | 2,405,948 |
Total | 6,938,958 | 4,712,230 |
As at 31 December 2024, the Group has pledged debt instruments at amortised cost with a total
fair value of RMB 33,578 million and carrying amount of RMB 30,930 million for the purpose
of repurchase agreement business and derivative business (as at 31 December 2023: a total fair
value of RMB35,024 million and carrying amount of RMB34,265 million).
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
27.
Debt instruments at amortised cost
- continued
- 91 -
(b)
Analysis of the movements of provision for impairment losses:
As at 31 December | ||
2024 | 2023 | |
At the beginning of the year | 5,499 | 5,132 |
(Reversal)/charge for the year, net | (125) | 367 |
Other changes | 17 | - |
At the end of the year | 5,391 | 5,499 |
28.
Debt instruments at fair value through other comprehensive income
(a)
Analysed by nature:
Non-current
As at 31 December | ||
2024 | 2023 | |
Debt securities | 5,938,076 | 15,027,489 |
Other debt instruments | - | 180,463 |
Total | 5,938,076 | 15,207,952 |
Analysed as: | ||
Listed outside Hong Kong | 271,247 | 2,466,091 |
Listed inside Hong Kong | 360,543 | 1,078,108 |
Unlisted | 5,306,286 | 11,663,753 |
Total | 5,938,076 | 15,207,952 |
Current
As at 31 December | ||
2024 | 2023 | |
Debt securities | 4,197,477 | 1,054,048 |
Total | 4,197,477 | 1,054,048 |
Analysed as: | ||
Listed outside Hong Kong | 845,668 | 271,786 |
Listed inside Hong Kong | - | 782,262 |
Unlisted | 3,351,809 | - |
Total | 4,197,477 | 1,054,048 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
28.
Debt instruments at fair value through other comprehensive income
- continued
(a)
Analysed by nature:
- continued
- 92 -
As at 31 December 2024, the Group has pledged debt instruments at fair value through other
comprehensive income with a total fair value of RMB1,342 million for the purpose of repurchase
agreement business and bond lending business (as at 31 December 2023: RMB2,903 million).
As at 31 December 2024, the fair value of debt instruments at fair value through other
comprehensive income with commitment were RMB1,023million (as at 31 December 2023:
Equity instruments at fair value through other comprehensive income
(a)
Analysed by nature:
Non-current
As at 31 December | ||
2024 | 2023 | |
Equity securities designated at financial assets at fair value | ||
through other comprehensive income | ||
- Unlisted equity securities | 125,860 | 124,506 |
Total | 125,860 | 124,506 |
Analysed as: | ||
Unlisted | 125,860 | 124,506 |
Equity instruments at FVOCI include non-traded equity instruments held by the Group. As the
equity instruments are not held for trading purpose, the Group has designated these investments
as equity instruments at FVOCI.
During the year ended 31 December 2024, the losses from the equity instruments at FVOCI
recognised in other comprehensive income amounted to RMB15 thousand (During the year
ended 31 December 2023: the gains amounted to RMB17,759 thousand). As a result of the
change of investment strategies, the Group disposed certain equity instrument at FVOCI and the
corresponding losses amounted to RMB143 thousand (During the year ended 31 December 2023:
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 93 -
Financial assets held under resale agreements
(a)
Analysed by collateral type:
Non-current
As at 31 December | ||
2024 | 2023 | |
Equity securities | 200,110 | - |
Less: impairment losses | (500) | - |
Total | 199,610 | - |
Current
As at 31 December | ||
2024 | 2023 | |
Debt securities | 12,308,144 | 7,617,629 |
Equity securities | 3,339,156 | 5,495,729 |
Less: impairment losses | (618,509) | (653,126) |
Total | 15,028,791 | 12,460,232 |
(b)
Analysed by market:
Non-current
As at 31 December | ||
2024 | 2023 | |
Shanghai stock exchange | 200,110 | - |
Less: impairment losses | (500) | - |
Total | 199,610 | - |
Current
As at 31 December | ||
2024 | 2023 | |
Inter-bank market | 8,520,557 | 5,238,381 |
Shenzhen stock exchange | 2,760,201 | 3,674,765 |
Shanghai stock exchange | 787,717 | 2,398,939 |
Others | 3,578,825 | 1,801,273 |
Less: impairment losses | (618,509) | (653,126) |
Total | 15,028,791 | 12,460,232 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
30.
Financial assets held under resale agreements
- continued
- 94 -
(c)
Analysis of the movements of provision for impairment losses:
As at 31 December | ||
2024 | 2023 | |
At the beginning of the year | 653,126 | 1,138,413 |
Reversal for the year, net | (36,155) | (485,801) |
Other | 2,038 | 514 |
Total | 619,009 | 653,126 |
(d)
Analysed by remaining contractual maturities of securities-backed lendings:
As at 31 December | ||
2024 | 2023 | |
Within 1 month | 823,232 | 870,766 |
1 to 3 months | 251,808 | 887,085 |
3 months to 1 year | 2,264,116 | 3,737,878 |
Over 1 year | 200,110 | - |
Less: impairment losses | (487,960) | (524,112) |
Total | 3,051,306 | 4,971,617 |
(e)
Analysed by the stage of ECL of securities-backed lendings:
| As at 31 December 2024 | ||||
Lifetime ECL-not | Lifetime ECL- | |||
12-month ECL | credit impaired | credit impaired | Total | |
Amortised cost | 3,060,224 | - | 479,042 | 3,539,266 |
Impairment losses | (8,918) | - | (479,042) | (487,960) |
Carrying amount | 3,051,306 | - | - | 3,051,306 |
Collateral | 8,030,573 | - | - | 8,030,573 |
| As at 31 December 2023 | ||||
Lifetime ECL-not | Lifetime ECL- | |||
12-month ECL | credit impaired | credit impaired | Total | |
Amortised cost | 4,987,546 | - | 508,183 | 5,495,729 |
Impairment losses | (17,279) | - | (506,833) | (524,112) |
Carrying amount | 4,970,267 | - | 1,350 | 4,971,617 |
Collateral | 13,797,117 | - | 296,916 | 14,094,033 |
As at 31 December 2024, the fair value of the collateral of the Group's financial assets held under
resale agreements was RMB 21,431,864 thousand (31 December 2023: RMB22,211,468
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 95 -
Financial assets at fair value through profit or loss
Non-current
(a)
Analysed by type:
As at 31 December | ||
2024 | 2023 | |
Equity securities | 4,387,352 | 6,190,549 |
Mutual funds | 528,732 | 727,238 |
Other debt instruments | 376,065 | 1,034,234 |
Total | 5,292,149 | 7,952,021 |
(b)
Analysed as:
As at 31 December | ||
2024 | 2023 | |
Listed outside Hong Kong | 493,753 | 372,821 |
Unlisted | 4,798,396 | 7,579,200 |
Total | 5,292,149 | 7,952,021 |
Current
(a)
Analysed by type:
As at 31 December | ||
2024 | 2023 | |
Equity securities | 56,499,288 | 123,416,836 |
Debt securities | 171,564,677 | 195,764,277 |
Mutual funds | 60,547,525 | 61,040,090 |
Private funds | 3,548,647 | 22,344,489 |
Wealth management products | 3,756,018 | 1,418,630 |
Other debt instruments | 329,453 | 1,143,041 |
Total | 296,245,608 | 405,127,363 |
(b)
Analysed as:
As at 31 December | ||
2024 | 2023 | |
Listed outside Hong Kong | 119,442,341 | 184,553,142 |
Listed inside Hong Kong | 17,830,773 | 30,595,909 |
Unlisted | 158,972,494 | 189,978,312 |
Total | 296,245,608 | 405,127,363 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
31.
Financial assets at fair value through profit or loss
- continued
Current - continued
(b)
Analysed as:
- continued
- 96 -
As at 31 December 2024, the fund investments with lock-up periods in its investment portfolio
held by the Group are RMB880 million (as at 31 December 2023: RMB772 million).
As at 31 December 2024, the listed equity securities held by the Group included approximately
RMB 710 million of restricted shares (as at 31 December 2023: RMB8,801 million). The
restricted shares are listed in the PRC with a legally enforceable restriction on these securities
that prevents the Group to dispose of within the specified period.
The equity interest in unlisted securities held by the Group are issued by private companies. The
value of the securities is measured by comparing with comparable companies that are listed and
in the same sector or measured by using other valuation techniques.
Non-current financial assets at fair value through profit or loss investments are expected to be
realised or restricted for sale beyond one year from the end of the respective reporting periods.
The fair value of the Group's investments in unlisted funds, which mainly invest in publicly
traded equities listed in the PRC, are valued based on the net asset values of the funds calculated
by the respective fund managers by reference to their underlying assets and liabilities' fair values.
The fair value of the Group's investments in equity securities without restriction, exchange-listed
funds and debt securities are determined with reference to their quoted prices as at reporting date.
As at 31 December 2024, the Group has entered into securities lending arrangement with clients
that resulted in the transfer of financial assets at fair value through profit or loss investments
with total fair value of RMB 1,275 million to external clients (as at 31 December 2023:
RMB1,791 million), which did not result in derecognition of the financial assets. The fair value
of collateral for the securities lending business is analysed in Note 37(c) together with the fair
value of collateral of margin financing business.
As at 31 December 2024, the Group has not pledged financial assets at fair value through profit
or loss investments to CSF for refinancing and supporting the Group's securities lending business
(as at 31 December 2023: RMB15,990 million).
As at 31 December 2024, the Group has pledged financial assets at fair value through profit or
loss investments with a total fair value of RMB 136,355 million for the purpose of repurchase
agreement business, bond lending business and derivative business (as at 31 December 2023:
RMB142,687 million).
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
31.
Financial assets at fair value through profit or loss
- continued
Current - continued
(b)
Analysed as:
- continued
- 97 -
As at 31 December 2024, the wealth management products held by the Group included
approximately RMB 70 million of restricted products(as at 31 December 2023: RMB49 million).
The restricted products are subscribed by the Group as the fund manager with a legally
enforceable restriction on these products that prevents the Group to dispose of within the
Refundable deposits
As at 31 December | ||
2024 | 2023 | |
Deposits with stock exchanges | ||
- Hong Kong Securities Clearing Company Limited | 16,684 | 46,104 |
- China Securities Depository and Clearing Corporation | ||
Limited | 1,682,104 | 1,636,953 |
- Hong Kong Stock Exchange | 71,420 | 25,666 |
- Hong Kong Exchanges and Clearing Limited | 44,028 | 81,106 |
1,814,236 | 1,789,829 | |
Deposits with futures and commodity exchanges | ||
- China Financial Futures Exchange | 10,401,127 | 15,040,738 |
- Shanghai Futures Exchange | 4,385,920 | 4,988,570 |
- Dalian Commodity Exchange | 3,098,634 | 3,837,356 |
- Zhengzhou Commodity Exchange | 2,698,887 | 3,054,381 |
- Shanghai International Energy Exchange | 965,577 | 1,109,516 |
- Other domestic commodity exchange | 537,815 | - |
- Overseas commodity exchange | 52,110 | 53,553 |
22,140,070 | 28,084,114 | |
Deposits with other institutions | ||
- China Securities Finance Corporation Limited | 1,218 | 319,011 |
- Shanghai Clearing House | 814,963 | 1,230,694 |
- Shanghai Gold Exchange | 200 | 400 |
- Others financial institutions | 8,680,611 | 9,120,230 |
9,496,992 | 10,670,335 | |
Total | 33,451,298 | 40,544,278 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 98 -
Deferred taxation
(a)
The components of deferred tax assets / (liabilities) recognised in the consolidated statements of financial position and the movements during the
year are as follows:
Changes in fair | Changes in fair | |||||||
value of | Changes in fair | value of | ||||||
financial | value of | financial | Intangible | |||||
Provision for | Employee | instruments | derivative | instruments | assets | |||
impairment | benefits | measured at | financial | measured at | recognised in | |||
Deferred tax arising from: | losses | payable | FVTPL | instruments | FVOCI | the acquisition | Others | Total |
As at 1 January 2024 | 712,946 | 1,593,378 | (735,042) | (206,845) | (30,969) | (1,193,296) | (1,398,113) | (1,257,941) |
Recognised in profit or loss | 46,919 | 255,301 | 20,766 | 379,681 | - | 11,359 | 690,502 | 1,404,528 |
Disposal of subsidiaries | (286) | (49,267) | 321 | - | - | 1,181,937 | (138,990) | 993,715 |
Reclassified as held for sale | - | (13,747) | 761 | - | - | - | 85 | (12,901) |
Recognised in reserves | 5,437 | - | - | - | (17,460) | - | - | (12,023) |
As at 31 December 2024 | 765,016 | 1,785,665 | (713,194) | 172,836 | (48,429) | - | (846,516) | 1,115,378 |
As at 1 January 2023(Restated) | 840,595 | 1,737,046 | (31,402) | (562,460) | (4,853) | (1,267,508) | (2,310,873) | (1,599,455) |
Recognised in profit or loss | (126,226) | (143,668) | (703,640) | 355,615 | - | 38,555 | 912,760 | 333,396 |
Acquisition of subsidiaries | - | - | - | - | - | 35,657 | - | 35,657 |
Recognised in reserves | (1,423) | - | - | - | (26,116) | - | - | (27,539) |
As at 31 December 2023 | 712,946 | 1,593,378 | (735,042) | (206,845) | (30,969) | (1,193,296) | (1,398,113) | (1,257,941) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
33.
Deferred taxation
- continued
- 99 -
(b)
Reconciliation to the consolidated statements of financial position
As at 31 December | ||
2024 | 2023 | |
Net deferred tax assets recognised in the consolidated | ||
statement of financial position | 1,591,926 | 702,722 |
Net deferred tax liabilities recognised in the consolidated | ||
statement of financial position | (476,548) | (1,960,663) |
Total | 1,115,378 | (1,257,941) |
(c)
Deferred tax assets not recognised
As at 31 December 2024 , in accordance with the accounting policy set out in Note 2(20)(ii), the
Group has not recognised unused tax losses of RMB123 million (as at 31 December 2023:
RMB877 million), as deferred tax assets, as it is not probable that future taxable profits against
which the losses can be utilised will be available in the relevant tax jurisdiction and entity. Most
Other non-current assets
(a)
Analysed by nature:
As at 31 December | ||
2024 | 2023 | |
Leasehold improvements and long-term deferred expenses | 240,951 | 311,789 |
(b)
The movements of leasehold improvements and long-term deferred expenses are as below:
As at 31 December | ||
2024 | 2023 | |
At the beginning of the year | 311,789 | 300,664 |
Additions | 17,440 | 68,385 |
Transfer in from property and equipment | 49,834 | 93,870 |
Amortisation | (136,768) | (151,130) |
Other decrease | (1,344) | - |
At the end of the year | 240,951 | 311,789 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 100 -
Accounts receivable
(a)
Analysed by nature:
As at 31 December | ||
2024 | 2023 | |
Accounts receivable of: | ||
- Brokers, dealers and clearing house | 1,961,690 | 3,172,930 |
- Fee and commission | 1,610,627 | 1,469,110 |
- Return swap and OTC options | 872,561 | 2,894,747 |
- Settlement | 395,144 | 1,494,496 |
- Redemption of open-ended fund | 892,370 | 750,412 |
- Subscription receivable | 1,540 | 571 |
- Others | 33,525 | 76,953 |
Less: impairment losses | (180,224) | (115,458) |
Total | 5,587,233 | 9,743,761 |
(b)
Analysed by ageing:
As at the end of the reporting period, the ageing analysis of accounts receivable, based on the
trade date, is as follows:
As at 31 December | ||
2024 | 2023 | |
Within 1 month | 4,036,738 | 6,666,521 |
1 to 3 months | 125,483 | 663,523 |
Over 3 months | 1,425,012 | 2,413,717 |
Total | 5,587,233 | 9,743,761 |
(c)
Analysis of the movements of provision for impairment losses:
As at 31 December | ||
2024 | 2023 | |
At the beginning of the year | 115,458 | 68,531 |
Charge for the year, net | 68,230 | 45,433 |
Other | (3,464) | 1,494 |
At the end of the year | 180,224 | 115,458 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
35.
Accounts receivable
- continued
- 101 -
(d)
Accounts receivable that is not impaired
Receivables that were neither past due nor impaired were relate to a wide range of customers for
whom there was no recent history of default.
Other receivables, prepayments and other current assets
(a)
Analysed by nature:
As at 31 December | ||
2024 | 2023 | |
Inventory | 1,147,499 | 245,380 |
Prepayments | 427,547 | 698,314 |
Dividends receivable | 292,700 | 1,190 |
Deductable VAT | 221,388 | 82,049 |
Other receivables(1) | 210,805 | 338,953 |
Interest receivable(2) | 8,390 | 64,446 |
Others | 571,898 | 1,109,653 |
Total | 2,880,227 | 2,539,985 |
The balance of others mainly represents prepaid tax and other current assets arising from normal
course of business.
As at 31 December 2024, the Group has pledged inventory with a total amount of RMB966
million for the purpose of derivative business (as at 31 December 2023: RMB125 million).
(1)
Other receivables:
As at 31 December | ||
2024 | 2023 | |
Other receivables | 933,170 | 1,057,147 |
Less: impairment losses | (722,365) | (718,194) |
Total | 210,805 | 338,953 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
36.
Other receivables and prepayments
and other current assets
- continued
(a)
Analysed by nature:
- continued
(1)
Other receivables:
- continued
- 102 -
Analysis of the movements of provision for other receivables impairment losses:
As at 31 December | ||
2024 | 2023 | |
At the beginning of the year | 718,194 | 763,738 |
Charge for the year, net | 4,225 | 16,821 |
Written-off | (37) | (62,365) |
Other | (17) | - |
Total | 722,365 | 718,194 |
(2)
Interest receivable:
As at 31 December | ||
2024 | 2023 | |
Interest receivable | 53,889 | 109,717 |
Less: impairment losses | (45,499) | (45,271) |
Total | 8,390 | 64,446 |
Analysis of the movements of provision for impairment losses of interest receivable:
As at 31 December | ||
2024 | 2023 | |
At the beginning of the year | 45,271 | 38,175 |
Charge for the year, net | 228 | 7,096 |
At the end of the year | 45,499 | 45,271 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 103 -
Margin accounts receivable
(a)
Analysed by nature:
As at 31 December | ||
2024 | 2023 | |
Individuals | 115,911,970 | 98,472,604 |
Institutions | 18,399,659 | 15,389,837 |
Less: impairment losses | (1,765,624) | (1,521,347) |
Total | 132,546,005 | 112,341,094 |
(b)
Analysis of the movements of provision for impairment losses:
As at 31 December | ||
2024 | 2023 | |
At the beginning of the year | 1,521,347 | 1,526,356 |
Charge/(reversal) for the year, net | 242,700 | (6,325) |
Other | 1,577 | 1,316 |
At the end of the year | 1,765,624 | 1,521,347 |
(c)
The fair value of collateral for margin financing and securities lending business is analysed
as follows:
As at 31 December | ||
2024 | 2023 | |
Fair value of collateral: | ||
Equity securities | 329,724,873 | 290,376,975 |
Funds | 16,087,915 | 36,266,977 |
Cash | 9,636,977 | 8,535,007 |
Debt securities | 1,247,809 | 1,354,000 |
Total | 356,697,574 | 336,532,959 |
The Group evaluates the collectability of receivable from margin clients based on management's
assessment on the credit rating, collateral value and the past collection history of each margin
client.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
37.
Margin accounts receivable
- continued
- 104 -
(d)
Analysed by the stage of ECL of margin accounts receivable:
| As at 31 December 2024 | ||||
Lifetime ECL-not | Lifetime ECL- | |||
12-month ECL | credit impaired | credit impaired | Total | |
Amortised cost | 122,541,806 | 11,575,523 | 194,300 | 134,311,629 |
Impairment losses | (640,003) | (964,367) | (161,254) | (1,765,624) |
Carrying amount | 121,901,803 | 10,611,156 | 33,046 | 132,546,005 |
Collateral | 318,540,485 | 37,983,652 | 173,437 | 356,697,574 |
| As at 31 December 2023 | ||||
Lifetime ECL-not | Lifetime ECL- | |||
12-month ECL | credit impaired | credit impaired | Total | |
Amortised cost | 102,465,790 | 11,194,173 | 202,478 | 113,862,441 |
Impairment losses | (560,203) | (843,096) | (118,048) | (1,521,347) |
Carrying amount | 101,905,587 | 10,351,077 | 84,430 | 112,341,094 |
Collateral | 301,195,391 | 35,051,742 | 285,826 | 336,532,959 |
Derivative financial instruments
| As at 31 December 2024 | |||
Fair value | |||
Notional amount | Assets | Liabilities | |
Interest rate derivatives | 1,460,855,341 | 697,426 | (814,414) |
Currency derivatives | 174,069,967 | 1,851,589 | (1,337,738) |
Equity derivatives | 204,986,804 | 6,262,677 | (5,899,597) |
Credit derivatives | 4,374,717 | 13,841 | (10,264) |
Commodity derivatives and others | 368,218,063 | 1,633,079 | (2,965,533) |
Total | 2,212,504,892 | 10,458,612 | (11,027,546) |
Less: settlement | (467,487) | 83,761 | |
Net position | 9,991,125 | (10,943,785) | |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
38.
Derivative financial instruments
- continued
- 105 -
As at 31 December 2023 | |||
Fair value | |||
Notional amount | Assets | Liabilities | |
Interest rate derivatives | 1,644,689,668 | 945,881 | (405,920) |
Currency derivatives | 186,761,759 | 295,866 | (1,474,728) |
Equity derivatives | 474,762,005 | 12,465,246 | (11,396,087) |
Credit derivatives | 10,873,787 | 30,174 | (5,684) |
Commodity derivatives and others | 417,780,134 | 3,319,877 | (3,915,670) |
Total | 2,734,867,353 | 17,057,044 | (17,198,089) |
Less: settlement | (797,163) | 316,448 | |
Net position | 16,259,881 | (16,881,641) | |
Under the daily mark-to-market and settlement arrangement, any gains or losses of the Group's
position in interest rate swap contracts settled in Shanghai Clearing House, stock index futures
and treasury futures settled in China Financial Futures Exchange and certain commodity futures
traded through futures companies, were settled daily and the corresponding receipts and
payments were included in "clearing settlement funds". Accordingly, the net position of the
above contracts was nil as at 31 December 2024 and 31 December 2023.
Cash flow hedges
The Group's cash flow hedges consist of cross currency swap contracts that are used to protect
against exposures to variability of future cash flows.
Among the above derivative financial instruments, those designated hedging instruments in cash
flow hedges are set out below:
| As at 31 December 2024 | |||||||
| Notional amount | Fair value | ||||||
Over 3 months | Over 1 year | ||||||
Within 3 | but within | but within | |||||
months | 1 year | 5 years | Over 5 years | Total | Assets | Liabilities | |
Currency derivatives | - | 3,025,000 | - | - | 3,025,000 | - | (169,081) |
| As at 31 December 2023 | |||||||
| Notional amount | Fair value | ||||||
Over 3 months | Over 1 year | ||||||
Within 3 | but within | but within | |||||
months | 1 year | 5 years | Over 5 years | Total | Assets | Liabilities | |
Currency derivatives | - | - | 3,025,000 | - | 3,025,000 | - | (32,763) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
38.
Derivative financial instruments
- continued
Cash flow hedges
- continued
- 106 -
Details of the Group's hedged risk exposures in cash flow hedges and the corresponding effect
on equities are as follows:
| As at 31 December 2024 | |||||
Effect of hedging | Accumulated effect | ||||
instruments on other | of hedging | ||||
comprehensive | instruments on other | Line items in the | |||
Carrying amount of hedged items | income | comprehensive | statement of | ||
Assets | Liabilities | during the year | income | financial position | |
Bonds | - | (3,048,491) | (83,916) | (44,844) | Long-term bonds |
| As at 31 December 2023 | |||||
Effect of hedging | Accumulated effect | ||||
instruments on other | of hedging | ||||
comprehensive | instruments on other | Line items in the | |||
Carrying amount of hedged items | income | comprehensive | statement of | ||
Assets | Liabilities | during the year | income | financial position | |
Bonds | - | (3,044,890) | (3,571) | 39,072 | Long-term bonds |
During the year ended 31 December 2024, the net losses from the hedging instruments
recognised in other comprehensive income amounted to RMB 83,916 thousand (During the year
ended 31 December 2023: the net losses amounted to RMB3,571 thousand). There was no hedge
Clearing settlement funds
As at 31 December | ||
2024 | 2023 | |
Deposits with stock exchanges | ||
- China Securities Depository and Clearing Corporation | ||
Limited | 6,654,049 | 5,746,776 |
- Hong Kong Securities Clearing Company Limited | 120,296 | 32,488 |
Deposits with other institutions | 4,362,413 | 3,350,002 |
Total | 11,136,758 | 9,129,266 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 107 -
Cash held on behalf of brokerage clients
The Group maintains segregated deposit accounts with banks and authorised institutions to hold
clients' monies arising from its normal course of business. The Group has classified the
brokerage clients' monies as cash held on behalf of brokerage clients under the current assets
section of the consolidated statement of financial position, and recognised the corresponding
accounts payable to the respective brokerage clients on the grounds that they are liable for any
loss or misappropriation of their brokerage clients' monies. In the Mainland China, the use of
cash held on behalf of brokerage clients for their transaction and settlement funds is restricted
and governed by the relevant third-party deposit regulations issued by the CSRC. In Hong Kong,
the use of cash held on behalf of brokerage clients is restricted and governed by the Securities
Cash and Bank balances
(a)
Analysed by nature:
As at 31 December | ||
2024 | 2023 | |
Cash on hand | 186 | 189 |
Bank balances | 39,521,623 | 46,296,689 |
Less: impairment losses | (351) | (512) |
Total | 39,521,458 | 46,296,366 |
Bank balances mainly comprise time and demand deposits which bear interest at the prevailing
market rates.
(b)
Analysis of the movements of provision for impairment losses:
As at 31 December | ||
2024 | 2023 | |
At the beginning of the year | 512 | 833 |
Reversal of impairment for the year | (190) | (290) |
Other Changes | 29 | (31) |
At the end of the year | 351 | 512 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 108 -
Cash and cash equivalents
(a)
Cash and cash equivalents comprise:
As at 31 December | ||
2024 | 2023 | |
Cash on hand | 186 | 189 |
Bank balances | 39,425,490 | 46,203,098 |
Clearing settlement funds | 11,136,758 | 9,129,266 |
Financial assets held under resale agreements within 3 | ||
months original maturity | 6,538,630 | 7,352,535 |
Bond investment within 3 months original maturity | 1,279,718 | 1,436,707 |
Less: restricted bank deposits and bank deposits with | ||
original maturity of more than three months | (2,347,573) | (4,291,466) |
Total | 56,033,209 | 59,830,329 |
As at 31 December 2024, the total amount of bank balances included cash and bank balances
classified as held for sale amounting to RMB10,109 thousand (as at 31 December 2023: nil).
The restricted bank deposits mainly include deposits reserved for VAT payable of asset
management plans, minimum liquid capital restriction deposits and risk reserve deposits.
(b)
Reconciliation of liabilities arising from financing activities:
The following table details changes in the Group's liabilities from financing activities,
including both cash and non-cash changes. Liabilities arising from financing activities are
liabilities for which cash flows were, or future cash flows will be, classified in the consolidated
statement of cash flows as cash flows from financing activities.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
42.
Cash and cash equivalents
- continued
(b)
Reconciliation of liabilities arising from financing activities:
- continued
- 109 -
DRAFT FOR
DISCUSSION
Dividends payable | |||||||
to ordinary | |||||||
shareholders and | |||||||
Short-term debt | Short-term | perpetural | |||||
instruments | Long-term bonds | bank loans | Long-term bank loans | Lease liabilities | subordinated bonds | Total | |
At 1 January 2024 | 25,475,507 | 159,816,001 | 11,478,573 | 647,052 | 1,468,161 | 145,230 | 199,030,524 |
Changes from financing cash flows | |||||||
Proceeds from issuance | 36,075,820 | - | 3,355,750 | - | - | - | 39,431,570 |
Repayment of borrowings | (31,906,954) | (44,310,354) | (11,377,260) | (642,200) | - | - | (88,236,768) |
Interest paid | (1,582,413) | (4,610,987) | (314,768) | (44,278) | - | - | (6,552,446) |
Payment of lease liabilities | - | - | - | - | (623,242) | - | (623,242) |
Dividend paid | - | - | - | - | - | (6,280,608) | (6,280,608) |
Total changes from financing cash | |||||||
flows | 2,586,453 | (48,921,341) | (8,336,278) | (686,478) | (623,242) | (6,280,608) | (62,261,494) |
Other changes | |||||||
Interest expenses | 525,412 | 4,752,586 | 220,685 | 34,669 | 50,632 | - | 5,583,984 |
New leases | - | - | - | - | 346,016 | - | 346,016 |
Dividends declared | - | - | - | - | - | 6,229,608 | 6,229,608 |
Exchange differences | 265,567 | (188,429) | - | 4,757 | - | - | 81,895 |
Others | - | - | - | - | (226,952) | - | (226,952) |
Total other changes | 790,979 | 4,564,157 | 220,685 | 39,426 | 169,696 | 6,229,608 | 12,014,551 |
At 31 December 2024 | 28,852,939 | 115,458,817 | 3,362,980 | - | 1,014,615 | 94,230 | 148,783,581 |
DRAFT FOR
HUATAI SECURITIES CO., LTD.
DISCUSSION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
42.
Cash and cash equivalents
- continued
(b)
Reconciliation of liabilities arising from financing activities:
- continued
- 110 -
Dividends payable | |||||||
to ordinary | |||||||
shareholders and | |||||||
Short-term debt | Short-term | perpetural | |||||
instruments | Long-term bonds | bank loans | Long-term bank loans | Lease liabilities | subordinated bonds | Total | |
At 1 January 2023 | 25,772,604 | 139,419,338 | 7,997,434 | 804,903 | 1,518,585 | 94,230 | 175,607,094 |
Changes from financing cash flows | |||||||
Proceeds from issuance | 43,556,056 | 48,241,623 | 11,377,260 | - | - | - | 103,174,939 |
Repayment of borrowings | (39,227,936) | (28,630,617) | (7,948,720) | (175,592) | - | - | (75,982,865) |
Interest paid | (5,330,291) | (4,362,411) | (545,002) | (53,487) | - | - | (10,291,191) |
Payment of lease liabilities | - | - | - | - | (662,201) | - | (662,201) |
Dividend paid | - | - | - | - | - | (4,769,463) | (4,769,463) |
Total changes from financing cash | |||||||
flows | (1,002,171) | 15,248,595 | 2,883,538 | (229,079) | (662,201) | (4,769,463) | 11,469,219 |
Other changes | |||||||
Interest expenses | 704,782 | 4,876,439 | 597,601 | 59,122 | 63,271 | - | 6,301,215 |
New leases | - | - | - | - | 548,506 | - | 548,506 |
Dividends declared | - | - | - | - | - | 4,820,463 | 4,820,463 |
Exchange differences | 292 | 271,629 | - | 12,106 | - | - | 284,027 |
Total other changes | 705,074 | 5,148,068 | 597,601 | 71,228 | 611,777 | 4,820,463 | 11,954,211 |
At 31 December 2023 | 25,475,507 | 159,816,001 | 11,478,573 | 647,052 | 1,468,161 | 145,230 | 199,030,524 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 111 -
Short-term bank loans
As at 31 December | ||
2024 | 2023 | |
Credit loans | 2,983,239 | 10,549,181 |
Pledged loans | 379,741 | 929,392 |
Total | 3,362,980 | 11,478,573 |
As of 31 December 2024, the interest rates for short-term loans were in the range of 3.30% -
Short-term debt instruments issued
As at 31 December 2024
Nominal | |||||
Name | Par value | Issuance date | Due date | Issue amount | interest rate |
Original currency | Original currency | ||||
23 HUATAI S3 | RMB3,000,000 | 13/11/2023 | 13/9/2024 | RMB3,000,000 | 2.67% |
23 HUATAI S4 | RMB4,000,000 | 20/11/2023 | 20/9/2024 | RMB4,000,000 | 2.65% |
23 HUATAI S5 | RMB2,000,000 | 8/12/2023 | 8/7/2024 | RMB2,000,000 | 2.81% |
23 HUATAI S6 | RMB5,000,000 | 19/12/2023 | 19/3/2024 | RMB5,000,000 | 2.75% |
24 HUATAI S1 | RMB2,000,000 | 18/10/2024 | 18/3/2025 | RMB2,000,000 | 1.96% |
24 HUATAI S2 | RMB4,800,000 | 13/11/2024 | 13/5/2025 | RMB4,800,000 | 1.90% |
24 HUATAI S3 | RMB1,000,000 | 13/11/2024 | 13/11/2025 | RMB1,000,000 | 1.92% |
24 HUATAI S4 | RMB6,000,000 | 10/12/2024 | 10/6/2025 | RMB6,000,000 | 1.75% |
24 HUATAI S6 | RMB3,000,000 | 24/12/2024 | 24/8/2025 | RMB3,000,000 | 1.67% |
HUATAI B2401a | USD25,800 | 13/1/2023 | 12/1/2024 | USD25,800 | 5.00% |
HUATAI B2401b | USD20,000 | 19/1/2023 | 19/1/2024 | USD20,000 | 5.75% |
HUATAI B2402a | USD15,000 | 3/2/2023 | 2/2/2024 | USD15,000 | 0.00% |
HUATAI B2402b | USD20,600 | 6/2/2023 | 5/2/2024 | USD20,600 | 0.00% |
HUATAI B2403a | USD30,000 | 27/3/2023 | 27/3/2024 | USD30,000 | 5.60% |
HUATAI B2405b | HKD475,000 | 5/5/2023 | 3/5/2024 | HKD475,000 | 4.60% |
HUATAI B2406c | USD50,000 | 13/6/2023 | 13/6/2024 | USD50,000 | 5.95% |
HUATAI B2401c | USD27,500 | 18/7/2023 | 18/1/2024 | USD27,500 | 6.17% |
HUATAI B2407a | USD11,000 | 19/7/2023 | 19/7/2024 | USD11,000 | 6.17% |
HUATAI B2401d | HKD100,000 | 19/7/2023 | 19/1/2024 | HKD100,000 | 5.36% |
HUATAI B2401e | USD20,000 | 24/7/2023 | 24/1/2024 | USD20,000 | 6.07% |
HUATAI B2407b | USD19,000 | 27/7/2023 | 26/7/2024 | USD19,000 | 0.00% |
HUATAI B2401h | USD15,000 | 31/7/2023 | 31/1/2024 | USD15,000 | 6.15% |
HUATAI B2401i | HKD100,000 | 31/7/2023 | 31/1/2024 | HKD100,000 | 5.55% |
HUATAI B2407c | USD10,000 | 2/8/2023 | 31/7/2024 | USD10,000 | SOFR + 0.95% |
HUATAI B2408a | USD15,000 | 3/8/2023 | 1/8/2024 | USD15,000 | SOFR + 0.95% |
HUATAI B2408b | USD15,000 | 4/8/2023 | 2/8/2024 | USD15,000 | SOFR + 0.95% |
HUATAI B2408c | USD10,000 | 4/8/2023 | 2/8/2024 | USD10,000 | SOFR + 0.95% |
HUATAI B2408d | USD15,000 | 10/8/2023 | 9/8/2024 | USD15,000 | 6.05% |
HUATAI B2402j | USD30,000 | 18/8/2023 | 21/2/2024 | USD30,000 | 6.14% |
HUATAI B2402k | HKD29,000 | 22/8/2023 | 22/2/2024 | HKD29,000 | 5.50% |
HUATAI B2402l | USD5,800 | 22/8/2023 | 22/2/2024 | USD5,800 | 6.10% |
HUATAI B2409a | USD65,000 | 12/9/2023 | 11/9/2024 | USD65,000 | 6.00% |
HUATAI B2403b | USD18,050 | 22/9/2023 | 22/3/2024 | USD18,050 | 0.00% |
HUATAI B2409b | USD13,150 | 22/9/2023 | 20/9/2024 | USD13,150 | 0.00% |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
44.
Short-term debt instruments issued
- continued
As at 31 December 2024 - continued
- 112 -
Nominal | |||||
Name | Par value | Issuance date | Due date | Issue amount | interest rate |
Original currency | Original currency | ||||
HUATAI B2403c | USD60,000 | 27/9/2023 | 26/3/2024 | USD60,000 | 6.00% |
HUATAI B2409c | RMB400,000 | 28/9/2023 | 24/9/2024 | RMB400,000 | 3.78% |
HUATAI B2404 | USD10,000 | 17/10/2023 | 17/4/2024 | USD10,000 | 6.31% |
HUATAI B2410a | RMB650,000 | 20/10/2023 | 16/10/2024 | RMB650,000 | 3.80% |
HUATAI B2401f | USD16,750 | 25/10/2023 | 25/1/2024 | USD16,750 | 0.00% |
HUATAI B2405c | USD14,500 | 25/10/2023 | 2/5/2024 | USD14,500 | 0.00% |
HUATAI B2407d | USD15,000 | 27/10/2023 | 27/7/2024 | USD15,000 | 6.36% |
HUATAI B2401g | USD10,000 | 27/10/2023 | 27/1/2024 | USD10,000 | 6.27% |
HUATAI B2407e | USD10,000 | 27/10/2023 | 27/7/2024 | USD10,000 | 6.36% |
HUATAI B2411a | USD30,000 | 6/11/2023 | 4/11/2024 | USD30,000 | 0.00% |
HUATAI B2402c | USD18,000 | 7/11/2023 | 7/2/2024 | USD18,000 | 6.30% |
HUATAI B2402g | USD17,000 | 9/11/2023 | 15/2/2024 | USD17,000 | 6.30% |
HUATAI B2402h | USD15,000 | 10/11/2023 | 15/2/2024 | USD15,000 | 6.30% |
HUATAI B2402e | USD10,000 | 10/11/2023 | 9/2/2024 | USD10,000 | 5.87% |
HUATAI B2411b | USD35,000 | 13/11/2023 | 8/11/2024 | USD35,000 | 0.00% |
HUATAI B2402d | USD18,200 | 13/11/2023 | 8/2/2024 | USD18,200 | 0.00% |
HUATAI B2402f | USD20,000 | 14/11/2023 | 14/2/2024 | USD20,000 | 0.00% |
HUATAI B2402i | USD15,460 | 15/11/2023 | 15/2/2024 | USD15,460 | 0.00% |
HUATAI B2405d | USD10,000 | 21/11/2023 | 21/5/2024 | USD10,000 | 6.46% |
HUATAI B2405e | HKD200,000 | 28/11/2023 | 28/5/2024 | HKD200,000 | 6.04% |
HUATAI B2409d | USD95,000 | 6/12/2023 | 6/9/2024 | USD95,000 | 6.00% |
HUATAI B2406d | USD25,000 | 7/12/2023 | 7/6/2024 | USD25,000 | 6.40% |
HUATAI B2406e | USD10,000 | 7/12/2023 | 7/6/2024 | USD10,000 | 6.36% |
HUATAI B2403d | USD40,000 | 8/12/2023 | 8/3/2024 | USD40,000 | 0.00% |
HUATAI B2406f | USD20,000 | 8/12/2023 | 7/6/2024 | USD20,000 | 0.00% |
HUATAI B2407f | USD35,000 | 22/1/2024 | 22/7/2024 | USD35,000 | 5.85% |
HUATAI B2407g | HKD100,000 | 22/1/2024 | 22/7/2024 | HKD100,000 | 5.09% |
HUATAI B2407h | USD60,000 | 25/1/2024 | 25/7/2024 | USD60,000 | 0.00% |
HUATAI B2405f | USD35,000 | 26/1/2024 | 14/5/2024 | USD35,000 | 0.00% |
HUATAI B2405g | RMB100,000 | 1/2/2024 | 10/5/2024 | RMB100,000 | 0.00% |
HUATAI B2405h | HKD81,000 | 2/2/2024 | 16/5/2024 | HKD81,000 | 5.04% |
HUATAI B2405i | USD10,000 | 6/2/2024 | 21/5/2024 | USD10,000 | 5.99% |
HUATAI B2405j | RMB300,000 | 6/2/2024 | 21/5/2024 | RMB300,000 | 3.00% |
HUATAI B2406g | USD20,000 | 7/2/2024 | 7/6/2024 | USD20,000 | 5.97% |
HUATAI B2408e | USD10,000 | 7/2/2024 | 7/8/2024 | USD10,000 | 5.89% |
HUATAI B2408f | RMB200,000 | 8/2/2024 | 8/8/2024 | RMB200,000 | 3.10% |
HUATAI B2408g | USD34,300 | 15/2/2024 | 15/8/2024 | USD34,300 | 5.96% |
HUATAI B2408h | USD20,000 | 15/2/2024 | 15/8/2024 | USD20,000 | 5.85% |
HUATAI B2405k | USD10,000 | 16/2/2024 | 30/5/2024 | USD10,000 | 5.97% |
HUATAI B2411c | USD50,000 | 9/5/2024 | 7/11/2024 | USD50,000 | 6.00% |
HUATAI B2411d | USD50,000 | 10/5/2024 | 8/11/2024 | USD50,000 | 6.00% |
HUATAI B2409e | USD20,000 | 6/6/2024 | 6/9/2024 | USD20,000 | 5.00% |
HUATAI B2409f | USD30,000 | 6/6/2024 | 6/9/2024 | USD30,000 | 5.85% |
HUATAI B2412a | USD42,000 | 11/6/2024 | 11/12/2024 | USD42,000 | 5.81% |
HUATAI B2410b | USD30,000 | 11/7/2024 | 11/10/2024 | USD30,000 | 5.72% |
HUATAI B2410c | USD30,000 | 15/7/2024 | 15/10/2024 | USD30,000 | 5.71% |
Structured notes (1) | RMB12,788,986 | Note (1) | Note (1) | RMB12,788,986 | Note (1) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
44.
Short-term debt instruments issued
- continued
As at 31 December 2024 - continued
- 113 -
Book value as at | Book value as at | |||
1 January | 31 December | |||
Name | 2024 | Increase | Decrease | 2024 |
RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | |
23 HUATAI S3 | 3,010,680 | 53,400 | (3,064,080) | - |
23 HUATAI S4 | 4,012,072 | 70,667 | (4,082,739) | - |
23 HUATAI S5 | 2,003,626 | 28,100 | (2,031,726) | - |
23 HUATAI S6 | 5,004,805 | 22,917 | (5,027,722) | - |
24 HUATAI S1 | - | 2,008,009 | - | 2,008,009 |
24 HUATAI S2 | - | 4,812,160 | - | 4,812,160 |
24 HUATAI S3 | - | 1,002,560 | - | 1,002,560 |
24 HUATAI S4 | - | 6,006,210 | - | 6,006,210 |
24 HUATAI S6 | - | 3,001,077 | - | 3,001,077 |
HUATAI B2401a | 191,563 | 3,331 | (194,894) | - |
HUATAI B2401b | 149,401 | 2,678 | (152,079) | - |
HUATAI B2402a | 105,865 | 1,992 | (107,857) | - |
HUATAI B2402b | 145,320 | 2,804 | (148,124) | - |
HUATAI B2403a | 215,457 | 6,365 | (221,822) | - |
HUATAI B2405b | 442,864 | 14,550 | (457,414) | - |
HUATAI B2406c | 365,627 | 15,646 | (381,273) | - |
HUATAI B2401c | 200,207 | 3,767 | (203,974) | - |
HUATAI B2407a | 80,069 | 3,907 | (83,976) | - |
HUATAI B2401d | 92,848 | 2,258 | (95,106) | - |
HUATAI B2401e | 143,770 | 2,222 | (145,992) | - |
HUATAI B2407b | 130,051 | 6,568 | (136,619) | - |
HUATAI B2401h | 108,958 | 2,216 | (111,174) | - |
HUATAI B2401i | 92,760 | 2,435 | (95,195) | - |
HUATAI B2407c | 71,515 | 3,797 | (75,312) | - |
HUATAI B2408a | 107,254 | 5,715 | (112,969) | - |
HUATAI B2408b | 107,235 | 5,696 | (112,931) | - |
HUATAI B2408c | 71,490 | 3,797 | (75,287) | - |
HUATAI B2408d | 108,645 | 5,720 | (114,365) | - |
HUATAI B2402j | 217,250 | 5,198 | (222,448) | - |
HUATAI B2402k | 491 | 27,109 | (27,600) | - |
HUATAI B2402l | 851 | 42,154 | (43,005) | - |
HUATAI B2409a | 467,832 | 27,983 | (495,815) | - |
HUATAI B2403b | 126,129 | 3,659 | (129,788) | - |
HUATAI B2409b | 89,161 | 5,394 | (94,555) | - |
HUATAI B2403c | 431,221 | 13,080 | (444,301) | - |
HUATAI B2409c | 403,780 | 11,216 | (414,996) | - |
HUATAI B2404 | 71,719 | 2,455 | (74,174) | - |
HUATAI B2410a | 654,445 | 20,052 | (674,497) | - |
HUATAI B2401f | 118,128 | 2,313 | (120,441) | - |
HUATAI B2405c | 100,618 | 3,644 | (104,262) | - |
HUATAI B2407d | 107,402 | 5,600 | (113,002) | - |
HUATAI B2401g | 71,590 | 1,442 | (73,032) | - |
HUATAI B2407e | 71,601 | 3,734 | (75,335) | - |
HUATAI B2411a | 201,570 | 14,145 | (215,715) | - |
HUATAI B2402c | 128,623 | 2,844 | (131,467) | - |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
44.
Short-term debt instruments issued
- continued
As at 31 December 2024 - continued
- 114 -
Book value as at | Book value as at | |||
1 January | 31 December | |||
Name | 2024 | Increase | Decrease | 2024 |
RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | |
HUATAI B2402g | 121,435 | 2,857 | (124,292) | - |
HUATAI B2402h | 107,130 | 2,521 | (109,651) | - |
HUATAI B2402e | 71,365 | 1,583 | (72,948) | - |
HUATAI B2411b | 235,040 | 16,627 | (251,667) | - |
HUATAI B2402d | 128,016 | 2,851 | (130,867) | - |
HUATAI B2402f | 140,531 | 3,279 | (143,810) | - |
HUATAI B2402i | 108,628 | 2,537 | (111,165) | - |
HUATAI B2405d | 71,297 | 2,930 | (74,227) | - |
HUATAI B2405e | 182,247 | 8,538 | (190,785) | - |
HUATAI B2409d | 673,468 | 40,368 | (713,836) | - |
HUATAI B2406d | 177,726 | 7,789 | (185,515) | - |
HUATAI B2406e | 71,086 | 3,144 | (74,230) | - |
HUATAI B2403d | 279,875 | 7,745 | (287,620) | - |
HUATAI B2406f | 137,712 | 6,098 | (143,810) | - |
HUATAI B2407f | - | 259,029 | (259,029) | - |
HUATAI B2407g | - | 94,954 | (94,954) | - |
HUATAI B2407h | - | 431,430 | (431,430) | - |
HUATAI B2405f | - | 251,667 | (251,667) | - |
HUATAI B2405g | - | 100,000 | (100,000) | - |
HUATAI B2405h | - | 76,086 | (76,086) | - |
HUATAI B2405i | - | 73,161 | (73,161) | - |
HUATAI B2405j | - | 302,589 | (302,589) | - |
HUATAI B2406g | - | 146,672 | (146,672) | - |
HUATAI B2408e | - | 74,023 | (74,023) | - |
HUATAI B2408f | - | 203,092 | (203,092) | - |
HUATAI B2408g | - | 254,065 | (254,065) | - |
HUATAI B2408h | - | 148,016 | (148,016) | - |
HUATAI B2405k | - | 73,144 | (73,144) | - |
HUATAI B2411c | - | 370,192 | (370,192) | - |
HUATAI B2411d | - | 370,249 | (370,249) | - |
HUATAI B2409e | - | 145,647 | (145,647) | - |
HUATAI B2409f | - | 218,871 | (218,871) | - |
HUATAI B2412a | - | 310,774 | (310,774) | - |
HUATAI B2410b | - | 218,800 | (218,800) | - |
HUATAI B2410c | - | 218,862 | (218,862) | - |
Structured notes (1) | 2,745,458 | 15,124,024 | (5,846,559) | 12,022,923 |
Total | 25,475,507 | 36,866,800 | (33,489,368) | 28,852,939 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
44.
Short-term debt instruments issued
- continued
- 115 -
As at 31 December 2023
Nominal | |||||
Name | Par value | Issuance date | Due date | Issue amount | interest rate |
Original currency | Original currency | ||||
22 HUATAI F1 | RMB4,000,000 | 17/1/2022 | 17/1/2024 | RMB4,000,000 | 2.75% |
22 HUATAI S2 | RMB5,000,000 | 19/8/2022 | 17/2/2023 | RMB5,000,000 | 1.78% |
23 HUATAI S1 | RMB5,000,000 | 17/3/2023 | 15/9/2023 | RMB5,000,000 | 2.65% |
23 HUATAI S2 | RMB5,000,000 | 23/3/2023 | 25/10/2023 | RMB5,000,000 | 2.65% |
23 HUATAI S3 | RMB3,000,000 | 13/11/2023 | 13/9/2024 | RMB3,000,000 | 2.67% |
23 HUATAI S4 | RMB4,000,000 | 20/11/2023 | 20/9/2024 | RMB4,000,000 | 2.65% |
23 HUATAI S5 | RMB2,000,000 | 8/12/2023 | 8/7/2024 | RMB2,000,000 | 2.81% |
23 HUATAI S6 | RMB5,000,000 | 19/12/2023 | 19/3/2024 | RMB5,000,000 | 2.75% |
HUATAI B2304a | USD100,000 | 7/4/2022 | 6/4/2023 | USD100,000 | 1.50% |
HUATAI B2304b | USD100,000 | 7/4/2022 | 6/4/2023 | USD100,000 | 1.50% |
HUATAI B2304c | USD100,000 | 7/4/2022 | 6/4/2023 | USD100,000 | 1.50% |
HUATAI B2302a | USD50,000 | 27/5/2022 | 28/2/2023 | USD50,000 | 2.81% |
HUATAI B2302b | HKD300,000 | 13/5/2022 | 13/2/2023 | HKD300,000 | 2.15% |
HUATAI B2305a | USD50,000 | 27/5/2022 | 25/5/2023 | USD50,000 | 2.85% |
HUATAI B2306 | USD100,000 | 10/6/2022 | 8/6/2023 | USD100,000 | 2.86% |
HUATAI B2308 | USD15,000 | 10/8/2022 | 9/8/2023 | USD15,000 | 3.00% |
HUATAI B2302d | USD18,000 | 14/11/2022 | 14/2/2023 | USD18,000 | 5.75% |
HUATAI B2302e | HKD300,000 | 14/11/2022 | 14/2/2023 | HKD300,000 | 5.75% |
HUATAI B2302f | USD10,700 | 16/11/2022 | 16/2/2023 | USD10,700 | 0.00% |
HUATAI B2302g | HKD496,000 | 16/11/2022 | 16/2/2023 | HKD496,000 | 5.50% |
HUATAI B2302h | USD5,499 | 18/11/2022 | 17/2/2023 | USD5,499 | 0.00% |
HUATAI B2302i | HKD23,390 | 18/11/2022 | 17/2/2023 | HKD23,390 | 0.00% |
HUATAI B2302j | HKD150,000 | 22/11/2022 | 22/2/2023 | HKD150,000 | 0.00% |
HUATAI B2311 | USD40,000 | 23/11/2022 | 22/11/2023 | USD40,000 | 6.05% |
HUATAI B2302k | USD8,580 | 25/11/2022 | 24/2/2023 | USD8,580 | 0.00% |
HUATAI B2302l | USD100,000 | 29/11/2022 | 27/2/2023 | USD100,000 | 0.00% |
HUATAI B2302m | USD50,000 | 29/11/2022 | 27/2/2023 | USD50,000 | 0.00% |
HUATAI B2303a | USD4,839 | 1/12/2022 | 1/3/2023 | USD4,839 | 0.00% |
HUATAI B2303b | HKD14,000 | 1/12/2022 | 1/3/2023 | HKD14,000 | 0.00% |
HUATAI B2303c | USD10,000 | 6/12/2022 | 3/3/2023 | USD10,000 | 5.70% |
HUATAI B2312 | RMB440,000 | 13/12/2022 | 12/12/2023 | RMB440,000 | 3.49% |
HUATAI B2306b | USD62,000 | 15/12/2022 | 15/6/2023 | USD62,000 | 0.00% |
HUATAI B2306c | USD32,300 | 29/12/2022 | 29/6/2023 | USD32,300 | 5.60% |
HUATAI B2304d | USD30,000 | 13/1/2023 | 13/4/2023 | USD30,000 | 5.00% |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
44.
Short-term debt instruments issued
- continued
As at 31 December 2023 - continued
- 116 -
Nominal | |||||
Name | Par value | Issuance date | Due date | Issue amount | interest rate |
Original currency | Original currency | ||||
HUATAI B2401a | USD25,800 | 13/1/2023 | 12/1/2024 | USD25,800 | 5.00% |
HUATAI B2304e | HKD62,000 | 13/1/2023 | 13/4/2023 | HKD62,000 | 5.34% |
HUATAI B2304f | USD20,000 | 17/1/2023 | 17/4/2023 | USD20,000 | 0.00% |
HUATAI B2304g | USD20,000 | 17/1/2023 | 18/4/2023 | USD20,000 | 5.25% |
HUATAI B2307d | USD20,000 | 17/1/2023 | 18/7/2023 | USD20,000 | 5.00% |
HUATAI B2312a | USD60,000 | 17/1/2023 | 22/12/2023 | USD60,000 | 5.00% |
HUATAI B2307e | HKD200,000 | 17/1/2023 | 18/7/2023 | HKD200,000 | 5.14% |
HUATAI B2401b | USD20,000 | 19/1/2023 | 19/1/2024 | USD20,000 | 5.75% |
HUATAI B2310 | USD50,000 | 19/1/2023 | 19/10/2023 | USD50,000 | 0.00% |
HUATAI B2402a | USD15,000 | 3/2/2023 | 2/2/2024 | USD15,000 | 0.00% |
HUATAI B2308a | USD10,000 | 6/2/2023 | 4/8/2023 | USD10,000 | 5.50% |
HUATAI B2308b | USD47,000 | 6/2/2023 | 7/8/2023 | USD47,000 | 0.00% |
HUATAI B2402b | USD20,600 | 6/2/2023 | 5/2/2024 | USD20,600 | 0.00% |
HUATAI B2308c | USD20,000 | 8/2/2023 | 8/8/2023 | USD20,000 | 5.55% |
HUATAI B2308d | USD100,000 | 9/2/2023 | 9/8/2023 | USD100,000 | 0.00% |
HUATAI B2305b | USD6,600 | 10/2/2023 | 10/5/2023 | USD6,600 | 0.00% |
HUATAI B2308e | USD15,000 | 10/2/2023 | 10/8/2023 | USD15,000 | 0.00% |
HUATAI B2305c | USD13,350 | 17/2/2023 | 17/5/2023 | USD13,350 | 0.00% |
HUATAI B2308h | USD30,000 | 17/2/2023 | 17/8/2023 | USD30,000 | 5.46% |
HUATAI B2305d | USD15,000 | 21/2/2023 | 23/5/2023 | USD15,000 | 5.28% |
HUATAI B2308i | USD100,000 | 21/2/2023 | 18/8/2023 | USD100,000 | 0.00% |
HUATAI B2305e | HKD200,000 | 21/2/2023 | 23/5/2023 | HKD200,000 | 3.82% |
HUATAI B2308f | USD50,000 | 22/2/2023 | 15/8/2023 | USD50,000 | 5.00% |
HUATAI B2306a | USD11,820 | 8/3/2023 | 8/6/2023 | USD11,820 | 0.00% |
HUATAI B2306d | USD20,000 | 10/3/2023 | 9/6/2023 | USD20,000 | 0.00% |
HUATAI B2309b | USD100,000 | 10/3/2023 | 12/9/2023 | USD100,000 | 0.00% |
HUATAI B2403a | USD30,000 | 27/3/2023 | 27/3/2024 | USD30,000 | 5.60% |
HUATAI B2307f | USD17,000 | 19/4/2023 | 19/7/2023 | USD17,000 | 0.00% |
HUATAI B2307g | USD6,300 | 20/4/2023 | 20/7/2023 | USD6,300 | 0.00% |
HUATAI B2307h | USD18,000 | 20/4/2023 | 20/7/2023 | USD18,000 | 0.00% |
HUATAI B2307i | USD20,000 | 24/4/2023 | 21/7/2023 | USD20,000 | 5.55% |
HUATAI B2311a | HKD51,000 | 2/5/2023 | 2/11/2023 | HKD51,000 | 0.00% |
HUATAI B2405b | HKD475,000 | 5/5/2023 | 3/5/2024 | HKD475,000 | 4.60% |
HUATAI B2307a | USD10,000 | 8/5/2023 | 7/7/2023 | USD10,000 | 5.55% |
HUATAI B2311b | USD20,000 | 9/5/2023 | 9/11/2023 | USD20,000 | 5.55% |
HUATAI B2307b | USD40,000 | 10/5/2023 | 11/7/2023 | USD40,000 | 5.55% |
HUATAI B2307c | USD12,500 | 16/5/2023 | 14/7/2023 | USD12,500 | 5.55% |
HUATAI B2311c | USD10,000 | 16/5/2023 | 16/11/2023 | USD10,000 | 5.66% |
HUATAI B2311d | USD5,150 | 19/5/2023 | 17/11/2023 | USD5,150 | 0.00% |
HUATAI B2307j | USD25,427 | 19/5/2023 | 21/7/2023 | USD25,427 | 5.00% |
HUATAI B2311g | HKD200,000 | 23/5/2023 | 24/11/2023 | HKD200,000 | 4.70% |
HUATAI B2307k | HKD100,000 | 29/5/2023 | 28/7/2023 | HKD100,000 | 4.85% |
HUATAI B2307l | USD15,000 | 29/5/2023 | 28/7/2023 | USD15,000 | 5.73% |
HUATAI B2309a | USD15,000 | 6/6/2023 | 6/9/2023 | USD15,000 | 5.88% |
HUATAI B2406c | USD50,000 | 13/6/2023 | 13/6/2024 | USD50,000 | 5.95% |
HUATAI B2308g | HKD250,000 | 14/6/2023 | 15/8/2023 | HKD250,000 | 4.65% |
HUATAI B2309c | USD26,300 | 15/6/2023 | 15/9/2023 | USD26,300 | 0.00% |
HUATAI B2311f | USD39,000 | 23/6/2023 | 22/11/2023 | USD39,000 | 0.00% |
HUATAI B2311h | USD10,500 | 26/6/2023 | 27/11/2023 | USD10,500 | 0.00% |
HUATAI B2309d | USD10,000 | 27/6/2023 | 27/9/2023 | USD10,000 | 5.50% |
HUATAI B2311i | USD25,500 | 30/6/2023 | 30/11/2023 | USD25,500 | 5.50% |
HUATAI B2310a | USD46,600 | 7/7/2023 | 11/10/2023 | USD46,600 | 5.50% |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
44.
Short-term debt instruments issued
- continued
As at 31 December 2023 - continued
- 117 -
Nominal | |||||
Name | Par value | Issuance date | Due date | Issue amount | interest rate |
Original currency | Original currency | ||||
HUATAI B2401c | USD27,500 | 18/7/2023 | 18/1/2024 | USD27,500 | 6.17% |
HUATAI B2310b | USD10,000 | 19/7/2023 | 19/10/2023 | USD10,000 | 5.80% |
HUATAI B2407a | USD11,000 | 19/7/2023 | 19/7/2024 | USD11,000 | 6.17% |
HUATAI B2401d | HKD100,000 | 19/7/2023 | 19/1/2024 | HKD100,000 | 5.36% |
HUATAI B2401e | USD20,000 | 24/7/2023 | 24/1/2024 | USD20,000 | 6.07% |
HUATAI B2310c | HKD200,000 | 26/7/2023 | 26/10/2023 | HKD200,000 | 5.36% |
HUATAI B2407b | USD19,000 | 27/7/2023 | 26/7/2024 | USD19,000 | 0.00% |
HUATAI B2401h | USD15,000 | 31/7/2023 | 31/1/2024 | USD15,000 | 6.15% |
HUATAI B2401i | HKD100,000 | 31/7/2023 | 31/1/2024 | HKD100,000 | 5.55% |
HUATAI B2311j | USD30,000 | 1/8/2023 | 1/11/2023 | USD30,000 | 6.03% |
HUATAI B2407c | USD10,000 | 2/8/2023 | 31/7/2024 | USD10,000 | SOFR+0.95% |
HUATAI B2408a | USD15,000 | 3/8/2023 | 1/8/2024 | USD15,000 | SOFR+0.95% |
HUATAI B2311k | USD12,477 | 3/8/2023 | 3/11/2023 | USD12,477 | 0.00% |
HUATAI B2408b | USD15,000 | 4/8/2023 | 2/8/2024 | USD15,000 | SOFR+0.95% |
HUATAI B2408c | USD10,000 | 4/8/2023 | 2/8/2024 | USD10,000 | SOFR+0.95% |
HUATAI B2312b | USD40,000 | 4/8/2023 | 1/12/2023 | USD40,000 | 6.02% |
HUATAI B2408d | USD15,000 | 10/8/2023 | 9/8/2024 | USD15,000 | 6.05% |
HUATAI B2402j | USD30,000 | 18/8/2023 | 21/2/2024 | USD30,000 | 6.14% |
HUATAI B2311l | USD10,000 | 21/8/2023 | 21/11/2023 | USD10,000 | 6.00% |
HUATAI B2311m | USD45,000 | 22/8/2023 | 22/11/2023 | USD45,000 | 6.05% |
HUATAI B2402k | HKD29,000 | 22/8/2023 | 22/2/2024 | HKD29,000 | 5.50% |
HUATAI B2402l | USD5,800 | 22/8/2023 | 22/2/2024 | USD5,800 | 6.10% |
HUATAI B2409a | USD65,000 | 12/9/2023 | 11/9/2024 | USD65,000 | 6.00% |
HUATAI B2312c | USD30,000 | 18/9/2023 | 18/12/2023 | USD30,000 | 6.06% |
HUATAI B2403b | USD18,050 | 22/9/2023 | 22/3/2024 | USD18,050 | 0.00% |
HUATAI B2409b | USD13,150 | 22/9/2023 | 20/9/2024 | USD13,150 | 0.00% |
HUATAI B2403c | USD60,000 | 27/9/2023 | 26/3/2024 | USD60,000 | 6.00% |
HUATAI B2409c | CNY400,000 | 28/9/2023 | 24/9/2024 | CNY400,000 | 3.78% |
HUATAI B2312d | USD10,340 | 29/9/2023 | 29/12/2023 | USD10,340 | 0.00% |
HUATAI B2404 | USD10,000 | 17/10/2023 | 17/4/2024 | USD10,000 | 6.31% |
HUATAI B2410 | CNY650,000 | 20/10/2023 | 16/10/2024 | CNY650,000 | 3.80% |
HUATAI B2401f | USD16,750 | 25/10/2023 | 25/1/2024 | USD16,750 | 0.00% |
HUATAI B2405c | USD14,500 | 25/10/2023 | 2/5/2024 | USD14,500 | 0.00% |
HUATAI B2407d | USD15,000 | 27/10/2023 | 27/7/2024 | USD15,000 | 6.36% |
HUATAI B2401g | USD10,000 | 27/10/2023 | 27/1/2024 | USD10,000 | 6.27% |
HUATAI B2407e | USD10,000 | 27/10/2023 | 27/7/2024 | USD10,000 | 6.36% |
HUATAI B2411a | USD30,000 | 6/11/2023 | 4/11/2024 | USD30,000 | 0.00% |
HUATAI B2402c | USD18,000 | 7/11/2023 | 7/2/2024 | USD18,000 | 6.30% |
HUATAI B2402g | USD17,000 | 9/11/2023 | 15/2/2024 | USD17,000 | 6.30% |
HUATAI B2402h | USD15,000 | 10/11/2023 | 15/2/2024 | USD15,000 | 6.30% |
HUATAI B2402e | USD10,000 | 10/11/2023 | 9/2/2024 | USD10,000 | 5.87% |
HUATAI B2411b | USD35,000 | 13/11/2023 | 8/11/2024 | USD35,000 | 0.00% |
HUATAI B2402d | USD18,200 | 13/11/2023 | 8/2/2024 | USD18,200 | 0.00% |
HUATAI B2402f | USD20,000 | 14/11/2023 | 14/2/2024 | USD20,000 | 0.00% |
HUATAI B2402i | USD15,460 | 15/11/2023 | 15/2/2024 | USD15,460 | 0.00% |
HUATAI B2405d | USD10,000 | 21/11/2023 | 21/5/2024 | USD10,000 | 6.46% |
HUATAI B2405e | HKD200,000 | 28/11/2023 | 28/5/2024 | HKD200,000 | 6.04% |
HUATAI B2409d | USD95,000 | 6/12/2023 | 6/9/2024 | USD95,000 | 6.00% |
HUATAI B2406d | USD25,000 | 7/12/2023 | 7/6/2024 | USD25,000 | 6.40% |
HUATAI B2406e | USD10,000 | 7/12/2023 | 7/6/2024 | USD10,000 | 6.36% |
HUATAI B2403d | USD40,000 | 8/12/2023 | 8/3/2024 | USD40,000 | 0.00% |
HUATAI B2406f | USD20,000 | 8/12/2023 | 7/6/2024 | USD20,000 | 0.00% |
Structured notes (1) | RMB2,786,805 | Note (1) | Note (1) | RMB2,786,805 | Note (1) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
44.
Short-term debt instruments issued
- continued
As at 31 December 2023 - continued
- 118 -
Book value as at | Book value as at | |||
1 January | 31 December | |||
Name | 2023 | Increase | Decrease | 2023 |
RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | |
22 HUATAI F1 | 4,105,269 | 4,731 | (4,110,000) | - |
22 HUATAI S2 | 5,032,777 | 7,417 | (5,040,194) | - |
23 HUATAI S1 | - | 5,060,551 | (5,060,551) | - |
23 HUATAI S2 | - | 5,069,456 | (5,069,456) | - |
23 HUATAI S3 | - | 3,010,680 | - | 3,010,680 |
23 HUATAI S4 | - | 4,012,072 | - | 4,012,072 |
23 HUATAI S5 | - | 2,003,626 | - | 2,003,626 |
23 HUATAI S6 | - | 5,004,805 | - | 5,004,805 |
HUATAI B2304a | 697,585 | 21,280 | (718,865) | - |
HUATAI B2304b | 697,585 | 21,280 | (718,865) | - |
HUATAI B2304c | 697,585 | 21,280 | (718,865) | - |
HUATAI B2302a | 354,203 | 7,484 | (361,687) | - |
HUATAI B2302b | 271,621 | 4,659 | (276,280) | - |
HUATAI B2305a | 354,025 | 10,148 | (364,173) | - |
HUATAI B2306 | 707,321 | 21,095 | (728,416) | - |
HUATAI B2308 | 105,092 | 4,327 | (109,419) | - |
HUATAI B2302d | 126,321 | 3,015 | (129,336) | - |
HUATAI B2302e | 269,950 | 5,850 | (275,800) | - |
HUATAI B2302f | 74,030 | 1,755 | (75,785) | - |
HUATAI B2302g | 445,902 | 9,804 | (455,706) | - |
HUATAI B2302h | 38,132 | 816 | (38,948) | - |
HUATAI B2302i | 20,749 | 447 | (21,196) | - |
HUATAI B2302j | 132,878 | 3,052 | (135,930) | - |
HUATAI B2311 | 279,817 | 20,584 | (300,401) | - |
HUATAI B2302k | 59,279 | 1,490 | (60,769) | - |
HUATAI B2302l | 690,163 | 18,107 | (708,270) | - |
HUATAI B2302m | 345,082 | 9,053 | (354,135) | - |
HUATAI B2303a | 33,398 | 875 | (34,273) | - |
HUATAI B2303b | 12,390 | 297 | (12,687) | - |
HUATAI B2303c | 69,931 | 1,858 | (71,789) | - |
HUATAI B2312 | 440,604 | 14,710 | (455,314) | - |
HUATAI B2306b | 420,182 | 18,945 | (439,127) | - |
HUATAI B2306c | 225,057 | 10,102 | (235,159) | - |
HUATAI B2304d | - | 215,101 | (215,101) | - |
HUATAI B2401a | - | 191,563 | - | 191,563 |
HUATAI B2304e | - | 56,924 | (56,924) | - |
HUATAI B2304f | - | 141,654 | (141,654) | - |
HUATAI B2304g | - | 143,508 | (143,508) | - |
HUATAI B2307d | - | 145,186 | (145,186) | - |
HUATAI B2312a | - | 444,697 | (444,697) | - |
HUATAI B2307e | - | 185,885 | (185,885) | - |
HUATAI B2401b | - | 149,401 | - | 149,401 |
HUATAI B2310 | - | 354,135 | (354,135) | - |
HUATAI B2402a | - | 105,865 | - | 105,865 |
HUATAI B2308a | - | 72,737 | (72,737) | - |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
44.
Short-term debt instruments issued
- continued
As at 31 December 2023 - continued
- 119 -
Book value as at | Book value as at | |||
1 January | 31 December | |||
Name | 2023 | Increase | Decrease | 2023 |
RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | |
HUATAI B2308b | - | 332,887 | (332,887) | - |
HUATAI B2402b | - | 145,320 | - | 145,320 |
HUATAI B2308c | - | 145,553 | (145,553) | - |
HUATAI B2308d | - | 708,270 | (708,270) | - |
HUATAI B2305b | - | 46,746 | (46,746) | - |
HUATAI B2308e | - | 106,241 | (106,241) | - |
HUATAI B2305c | - | 94,554 | (94,554) | - |
HUATAI B2308h | - | 218,234 | (218,234) | - |
HUATAI B2305d | - | 107,639 | (107,639) | - |
HUATAI B2308i | - | 708,270 | (708,270) | - |
HUATAI B2305e | - | 182,966 | (182,966) | - |
HUATAI B2308f | - | 362,576 | (362,576) | - |
HUATAI B2306a | - | 83,718 | (83,718) | - |
HUATAI B2306d | - | 141,654 | (141,654) | - |
HUATAI B2309b | - | 708,270 | (708,270) | - |
HUATAI B2403a | - | 215,457 | - | 215,457 |
HUATAI B2307f | - | 120,406 | (120,406) | - |
HUATAI B2307g | - | 44,621 | (44,621) | - |
HUATAI B2307h | - | 127,489 | (127,489) | - |
HUATAI B2307i | - | 143,549 | (143,549) | - |
HUATAI B2311a | - | 46,216 | (46,216) | - |
HUATAI B2405b | - | 442,864 | - | 442,864 |
HUATAI B2307a | - | 71,473 | (71,473) | - |
HUATAI B2311b | - | 145,617 | (145,617) | - |
HUATAI B2307b | - | 285,979 | (285,979) | - |
HUATAI B2307c | - | 89,328 | (89,328) | - |
HUATAI B2311c | - | 72,848 | (72,848) | - |
HUATAI B2311d | - | 36,476 | (36,476) | - |
HUATAI B2307j | - | 181,646 | (181,646) | - |
HUATAI B2311g | - | 185,557 | (185,557) | - |
HUATAI B2307k | - | 91,342 | (91,342) | - |
HUATAI B2307l | - | 107,241 | (107,241) | - |
HUATAI B2309a | - | 107,815 | (107,815) | - |
HUATAI B2406c | - | 365,627 | - | 365,627 |
HUATAI B2308g | - | 228,339 | (228,339) | - |
HUATAI B2309c | - | 186,275 | (186,275) | - |
HUATAI B2311f | - | 276,225 | (276,225) | - |
HUATAI B2311h | - | 74,368 | (74,368) | - |
HUATAI B2309d | - | 71,809 | (71,809) | - |
HUATAI B2311i | - | 184,773 | (184,773) | - |
HUATAI B2310a | - | 334,828 | (334,828) | - |
HUATAI B2401c | - | 200,207 | - | 200,207 |
HUATAI B2310b | - | 71,862 | (71,862) | - |
HUATAI B2407a | - | 80,069 | - | 80,069 |
HUATAI B2401d | - | 92,848 | - | 92,848 |
HUATAI B2401e | - | 143,770 | - | 143,770 |
HUATAI B2310c | - | 183,689 | (183,689) | - |
HUATAI B2407b | - | 130,051 | - | 130,051 |
HUATAI B2401h | - | 108,958 | - | 108,958 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
44.
Short-term debt instruments issued
- continued
As at 31 December 2023 - continued
- 120 -
Book value as at | Book value as at | |||
1 January | 31 December | |||
Name | 2023 | Increase | Decrease | 2023 |
RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | |
HUATAI B2401i | - | 92,760 | - | 92,760 |
HUATAI B2311j | - | 215,710 | (215,710) | - |
HUATAI B2407c | - | 71,515 | - | 71,515 |
HUATAI B2408a | - | 107,254 | - | 107,254 |
HUATAI B2311k | - | 88,371 | (88,371) | - |
HUATAI B2408b | - | 107,235 | - | 107,235 |
HUATAI B2408c | - | 71,490 | - | 71,490 |
HUATAI B2312b | - | 288,868 | (288,868) | - |
HUATAI B2408d | - | 108,645 | - | 108,645 |
HUATAI B2402j | - | 217,250 | - | 217,250 |
HUATAI B2311l | - | 71,898 | (71,898) | - |
HUATAI B2311m | - | 323,582 | (323,582) | - |
HUATAI B2402k | - | 491 | - | 491 |
HUATAI B2402l | - | 851 | - | 851 |
HUATAI B2409a | - | 467,832 | - | 467,832 |
HUATAI B2312c | - | 215,691 | (215,691) | - |
HUATAI B2403b | - | 126,129 | - | 126,129 |
HUATAI B2409b | - | 89,161 | - | 89,161 |
HUATAI B2403c | - | 431,221 | - | 431,221 |
HUATAI B2409c | - | 403,780 | - | 403,780 |
HUATAI B2312d | - | 73,235 | (73,235) | - |
HUATAI B2404 | - | 71,719 | - | 71,719 |
HUATAI B2410 | - | 654,445 | - | 654,445 |
HUATAI B2401f | - | 118,128 | - | 118,128 |
HUATAI B2405c | - | 100,618 | - | 100,618 |
HUATAI B2407d | - | 107,402 | - | 107,402 |
HUATAI B2401g | - | 71,590 | - | 71,590 |
HUATAI B2407e | - | 71,601 | - | 71,601 |
HUATAI B2411a | - | 201,570 | - | 201,570 |
HUATAI B2402c | - | 128,623 | - | 128,623 |
HUATAI B2402g | - | 121,435 | - | 121,435 |
HUATAI B2402h | - | 107,130 | - | 107,130 |
HUATAI B2402e | - | 71,365 | - | 71,365 |
HUATAI B2411b | - | 235,040 | - | 235,040 |
HUATAI B2402d | - | 128,016 | - | 128,016 |
HUATAI B2402f | - | 140,531 | - | 140,531 |
HUATAI B2402i | - | 108,628 | - | 108,628 |
HUATAI B2405d | - | 71,297 | - | 71,297 |
HUATAI B2405e | - | 182,247 | - | 182,247 |
HUATAI B2409d | - | 673,468 | - | 673,468 |
HUATAI B2406d | - | 177,726 | - | 177,726 |
HUATAI B2406e | - | 71,086 | - | 71,086 |
HUATAI B2403d | - | 279,875 | - | 279,875 |
HUATAI B2406f | - | 137,712 | - | 137,712 |
Structured notes (1) | 9,065,676 | 702,082 | (7,022,300) | 2,745,458 |
Total | 25,772,604 | 44,261,130 | (44,558,227) | 25,475,507 |
(1)
During the year ended 31 December 2024, the Company has issued 186 tranches of
structured notes, bearing interest ranging from 1.78% to 6.58% per annum, repayable
within 1 year. Structured notes repayable more than 1 year are classified as "Long-term
bonds" (Note 53). (During the year ended 31 December 2023, the Company has issued
182 tranches of structured notes, bearing interest ranging from 2.20% to 6.58% per
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 121 -
Placements from other financial institutions
Current
As at 31 December | ||
2024 | 2023 | |
Placements from banks | 30,113,661 | 39,244,418 |
Placements from refinancing business | - | 292,109 |
Total | 30,113,661 | 39,536,527 |
As at 31 December 2024, the placements from banks are unsecured, bearing interest of 1.40% -
5.17% per annum, with maturities within 114 days (as at 31 December 2023, the placements
from banks are unsecured, bearing interest of 1.00% -6.15% per annum, with maturities within
361 days), and the placements from CSF is nil (as at 31 December 2023: the placements from
CSF are secured by the securities and refundable deposits held by the Group, bearing interest of
2.15%- 2.90%per annum, with maturities within 170 days, and the placements from CSF is
Accounts payable to brokerage clients
Current
As at 31 December | ||
2024 | 2023 | |
Clients' deposits for brokerage trading | 162,456,364 | 129,645,383 |
Clients' deposits for margin financing and securities | ||
lending | 22,130,612 | 15,055,977 |
Total | 184,586,976 | 144,701,360 |
Accounts payable to brokerage clients represent the monies received from and repayable to
brokerage clients, which are mainly held at banks and at clearing houses by the Group. Accounts
payable to brokerage clients are interest-bearing at the prevailing interest rate.
The majority of the accounts payable balances are repayable on demand except where certain
accounts payable to brokerage clients represent monies received from clients for their margin
financing activities under normal course of business, such as margin financing and securities
lending. Only the excess amounts over the required margin deposits and cash collateral stipulated
are repayable on demand.
No aging analysis is disclosed as in the opinion of the directors of the Company, the aging
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 122 -
Employee benefits payable
Non-current
As at 31 December | ||
2024 | 2023 | |
Salaries, bonuses and allowance | 6,116,922 | 6,431,780 |
Current
As at 31 December | ||
2024 | 2023 | |
Salaries, bonuses and allowance | 4,194,639 | 3,744,726 |
Contribution to pension scheme | 203 | 4,284 |
Other social welfare | 394,171 | 402,429 |
Total | 4,589,013 | 4,151,439 |
Other payables and accruals
Non-current
As at 31 December | ||
2024 | 2023 | |
Lease liabilities | ||
1 to 2 years (inclusive) | 296,568 | 572,755 |
2 to 5 years (inclusive) | 251,721 | 282,494 |
After 5 years | 33,657 | 72,031 |
Total | 581,946 | 927,280 |
The Group's leases are mainly land and buildings for operations. Most lease contracts are entered
into terms from 1 year to 5 years.
(1)
During year of 2024, the expenses related to short-term leases and low-value leases of
RMB31 million (2023: RMB39 million) were recognised in profit or loss.
(2)
As at 31 December 2024, the cash flows of lease contracts signed by the Group but lease
not yet commenced are insignificant.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
48.
Other payables and accruals
- continued
- 123 -
Current
As at 31 December | ||
2024 | 2023 | |
Trade payable | 67,027,191 | 98,159,066 |
Payable to brokers, dealers and clearing house | 3,967,684 | 3,841,663 |
Payable to open-ended funds | 1,008,569 | 7,825,379 |
Other tax payable | 344,952 | 168,412 |
Restrictive repurchase obligation | 100,545 | 228,371 |
Lease liabilities | 432,669 | 540,881 |
Fee and commission payable | 42,640 | 110,456 |
Futures risk reserve | 261,750 | 238,043 |
Payable to outsourcing service | 115,275 | 161,898 |
Payable to the securities investor protection fund | 66,545 | 48,563 |
Funds payable to securities issuers | 69,650 | 228,431 |
Payable for office building construction | 20,635 | 24,314 |
Dividend payable | 13,097 | 64,097 |
Accrued liabilities (1) | 746,108 | 570,142 |
Others (2) | 1,219,109 | 1,675,083 |
Total | 75,436,419 | 113,884,799 |
(1)
The balance of accrued liabilities mainly represents the provisions accrued for the
outstanding litigations amounting to RMB746 million. (Note 58).
(2)
The balance of others mainly represents payable to brokerage agents and sundry payables
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 124 -
Contract liabilities
As at 31 December | ||
2024 | 2023 | |
Advance fee and commission | 104,280 | 158,581 |
Advance consideration from commodity trading | 412 | 18,919 |
Total | 104,692 | 177,500 |
Financial assets sold under repurchase agreements
(a)
Analysed by collateral type:
As at 31 December | ||
2024 | 2023 | |
Debt securities | 113,398,845 | 130,284,994 |
Equity securities | 7,649,323 | 13,771,155 |
Total | 121,048,168 | 144,056,149 |
As at 31 December 2024, the Group's pledged collateral in connection with financial assets sold
under repurchase agreements amounted to RMB 154,418 million (as at 31 December 2023:
RMB177,096 million).
(b)
Analysed by market:
As at 31 December | ||
2024 | 2023 | |
Inter-bank market | 73,799,904 | 91,007,974 |
Shanghai stock exchange | 33,351,190 | 39,159,490 |
Shenzhen stock exchange | 13,897,074 | 13,888,685 |
Total | 121,048,168 | 144,056,149 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 125 -
Financial liabilities at fair value through profit or loss
Non-current
As at 31 December | ||
2024 | 2023 | |
Financial liabilities designated at fair value through profit | ||
or loss | 6,973,421 | 8,961,031 |
Current
As at 31 December | ||
2024 | 2023 | |
Financial liabilities held for trading | 26,585,600 | 35,932,137 |
Financial liabilities designated at fair value through profit | ||
or loss | 6,889,311 | 7,777,998 |
Total | 33,474,911 | 43,710,135 |
In the consolidated financial statements, the financial liabilities arising from consolidation of
structured entities and private funds with the underlying investments related to listed equity
investments in active markets and unlisted equity investments are designated at fair value
through profit or loss by the Group, as the Group has the obligation to pay other investors or
limited partners upon maturity dates of the structured entities based on net book value and related
terms of those consolidated asset management schemes or private equity funds.
In the consolidated financial statements, certain structured notes are designated at fair value
through profit or loss by the Group, as the host contracts of structured notes contains embedded
derivatives.
In the consolidated financial statements, certain bonds are designated at fair value through profit
or loss by the Group, as the designation can significantly reduce the accounting mismatch.
As at 31 December 2024 and 31 December 2023, there were no significant fair value changes
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 126 -
Long-term bonds due within one year
As at 31 December 2024
Nominal | |||||
Name | Par value | Issuance date | Due date | Issue amount | interest rate |
Original currency | Original currency | ||||
21 HUATAI G1 | RMB4,000,000 | 2021/01/20 | 2024/01/20 | RMB4,000,000 | 3.58% |
21 HUATAI G3 | RMB5,000,000 | 2021/04/26 | 2024/04/26 | RMB5,000,000 | 3.42% |
21 HUATAI G5 | RMB4,000,000 | 2021/05/24 | 2024/05/24 | RMB4,000,000 | 3.28% |
21 HUATAI G7 | RMB2,000,000 | 2021/06/15 | 2024/06/15 | RMB2,000,000 | 3.40% |
21 HUATAI 09 | RMB2,500,000 | 2021/06/21 | 2024/06/21 | RMB2,500,000 | 3.45% |
21 HUATAI 11 | RMB1,500,000 | 2021/09/07 | 2024/09/07 | RMB1,500,000 | 3.03% |
21 HUATAI 13 | RMB2,100,000 | 2021/10/18 | 2024/10/18 | RMB2,100,000 | 3.25% |
21 HUATAI 15 | RMB2,200,000 | 2021/10/25 | 2024/10/25 | RMB2,200,000 | 3.22% |
22 HUATAI G2 | RMB2,000,000 | 2022/08/15 | 2024/08/15 | RMB2,000,000 | 2.43% |
22 HUATAI G3 | RMB3,000,000 | 2022/08/26 | 2024/08/26 | RMB3,000,000 | 2.33% |
22 HUATAI G6 | RMB3,600,000 | 2022/11/21 | 2024/11/21 | RMB3,600,000 | 2.87% |
22 HUATAI G8 | RMB1,500,000 | 2022/12/05 | 2024/12/05 | RMB1,500,000 | 2.87% |
22 HUATAI 12 | RMB4,000,000 | 2022/12/22 | 2024/12/22 | RMB4,000,000 | 3.24% |
20 HUATAI G3 | RMB3,500,000 | 2020/04/29 | 2025/04/29 | RMB3,500,000 | 2.90% |
20 HUATAI G4 | RMB3,000,000 | 2020/05/21 | 2025/05/21 | RMB3,000,000 | 3.20% |
22 HUATAI G1 | RMB5,000,000 | 2022/02/14 | 2025/02/14 | RMB5,000,000 | 2.79% |
22 HUATAI G4 | RMB2,000,000 | 2022/09/05 | 2025/09/05 | RMB2,000,000 | 2.52% |
22 HUATAI G5 | RMB3,000,000 | 2022/09/13 | 2025/09/13 | RMB3,000,000 | 2.50% |
22 HUATAI 10 | RMB2,000,000 | 2022/12/12 | 2025/12/12 | RMB2,000,000 | 3.35% |
23 HUATAI G1 | RMB4,000,000 | 2023/01/10 | 2025/01/10 | RMB4,000,000 | 2.92% |
23 HUATAI G2 | RMB800,000 | 2023/01/16 | 2025/01/16 | RMB800,000 | 3.00% |
23 HUATAI G8 | RMB1,700,000 | 2023/05/10 | 2025/07/10 | RMB1,700,000 | 2.82% |
23 HUATAI 13 | RMB1,000,000 | 2023/10/16 | 2025/10/16 | RMB1,000,000 | 2.80% |
20 HUATAI C1 | RMB5,000,000 | 2020/11/13 | 2025/11/13 | RMB5,000,000 | 4.48% |
HUATAI B2404 | USD900,000 | 2021/04/09 | 2024/04/09 | USD900,000 | 1.30% |
HUATAI B2503 | USD1,000,000 | 2022/03/03 | 2025/03/03 | USD1,000,000 | 2.38% |
HUATAI B2509 | RMB3,025,000 | 2022/09/14 | 2025/09/14 | RMB3,025,000 | 2.85% |
Structured notes (1) | RMB500,843 | Note (1) | Note (1) | RMB500,843 | Note (1) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
52.
Long-term bonds due within one year
- continued
- 127 -
As at 31 December 2024
Book value as at | Book value as at | |||
Name | 1 January 2024 | Increase | Decrease | 31 December 2024 |
RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | |
21 HUATAI G1 | 4,135,816 | 7,384 | (4,143,200) | - |
21 HUATAI G3 | 5,115,842 | 55,158 | (5,171,000) | - |
21 HUATAI G5 | 4,078,828 | 52,372 | (4,131,200) | - |
21 HUATAI G7 | 2,036,717 | 31,283 | (2,068,000) | - |
21 HUATAI 09 | 2,545,126 | 41,124 | (2,586,250) | - |
21 HUATAI 11 | 1,514,151 | 31,299 | (1,545,450) | - |
21 HUATAI 13 | 2,113,824 | 54,426 | (2,168,250) | - |
21 HUATAI 15 | 2,213,012 | 57,828 | (2,270,840) | - |
22 HUATAI G2 | 2,017,898 | 30,702 | (2,048,600) | - |
22 HUATAI G3 | 3,023,508 | 46,392 | (3,069,900) | - |
22 HUATAI G6 | 3,611,143 | 92,177 | (3,703,320) | - |
22 HUATAI G8 | 1,502,580 | 40,470 | (1,543,050) | - |
22 HUATAI 12 | 4,001,636 | 127,964 | (4,129,600) | - |
20 HUATAI G3 | - | 3,669,503 | (101,500) | 3,568,003 |
20 HUATAI G4 | - | 3,154,606 | (96,000) | 3,058,606 |
22 HUATAI G1 | - | 5,261,756 | (139,500) | 5,122,256 |
22 HUATAI G4 | - | 2,066,255 | (50,400) | 2,015,855 |
22 HUATAI G5 | - | 3,096,831 | (75,000) | 3,021,831 |
22 HUATAI 10 | - | 2,070,097 | (67,000) | 2,003,097 |
23 HUATAI G1 | - | 4,231,409 | (116,800) | 4,114,609 |
23 HUATAI G2 | - | 847,152 | (24,000) | 823,152 |
23 HUATAI G8 | - | 1,778,787 | (47,940) | 1,730,847 |
23 HUATAI 13 | - | 1,033,674 | (28,000) | 1,005,674 |
20 HUATAI C1 | - | 5,253,184 | (224,000) | 5,029,184 |
HUATAI B2404 | 6,388,692 | 67,244 | (6,455,936) | - |
HUATAI B2503 | - | 7,416,677 | (170,846) | 7,245,831 |
HUATAI B2509 | - | 3,135,411 | (86,920) | 3,048,491 |
Structured notes (1) | 504,716 | - | (504,716) | - |
Total | 44,803,489 | 43,751,165 | (46,767,218) | 41,787,436 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
52.
Long-term bonds due within one year
- continued
- 128 -
As at 31 December 2023
Nominal | |||||
Name | Par value | Issuance date | Due date | Issue amount | interest rate |
Original currency | Original currency | ||||
13 HUATAI 02 | RMB6,000,000 | 5/6/2013 | 5/6/2023 | RMB6,000,000 | 5.10% |
18 HUATAI G2 | RMB1,000,000 | 26/11/2018 | 26/11/2023 | RMB1,000,000 | 4.17% |
20 HUATAI G1 | RMB8,000,000 | 26/3/2020 | 26/3/2023 | RMB8,000,000 | 2.99% |
20 HUATAI G6 | RMB3,200,000 | 18/6/2020 | 18/6/2023 | RMB3,200,000 | 3.10% |
20 HUATAI G7 | RMB3,500,000 | 24/11/2020 | 24/11/2023 | RMB3,500,000 | 3.90% |
20 HUATAI G9 | RMB4,000,000 | 9/12/2020 | 9/12/2023 | RMB4,000,000 | 3.79% |
21 HUATAI G1 | RMB4,000,000 | 20/1/2021 | 20/1/2024 | RMB4,000,000 | 3.58% |
21 HUATAI G3 | RMB5,000,000 | 26/4/2021 | 26/4/2024 | RMB5,000,000 | 3.42% |
21 HUATAI G5 | RMB4,000,000 | 24/5/2021 | 24/5/2024 | RMB4,000,000 | 3.28% |
21 HUATAI G7 | RMB2,000,000 | 15/6/2021 | 15/6/2024 | RMB2,000,000 | 3.40% |
21 HUATAI 09 | RMB2,500,000 | 21/6/2021 | 21/6/2024 | RMB2,500,000 | 3.45% |
21 HUATAI 11 | RMB1,500,000 | 7/9/2021 | 7/9/2024 | RMB1,500,000 | 3.03% |
21 HUATAI 13 | RMB2,100,000 | 18/10/2021 | 18/10/2024 | RMB2,100,000 | 3.25% |
21 HUATAI 15 | RMB2,200,000 | 25/10/2021 | 25/10/2024 | RMB2,200,000 | 3.22% |
22 HUATAI G2 | RMB2,000,000 | 15/8/2022 | 15/8/2024 | RMB2,000,000 | 2.43% |
22 HUATAI G3 | RMB3,000,000 | 26/8/2022 | 26/8/2024 | RMB3,000,000 | 2.33% |
22 HUATAI G6 | RMB3,600,000 | 21/11/2022 | 21/11/2024 | RMB3,600,000 | 2.87% |
22 HUATAI G8 | RMB1,500,000 | 5/12/2022 | 5/12/2024 | RMB1,500,000 | 2.87% |
22 HUATAI 12 | RMB4,000,000 | 22/12/2022 | 22/12/2024 | RMB4,000,000 | 3.24% |
HUATAI B2302c | USD400,000 | 12/2/2020 | 12/2/2023 | USD400,000 | LIBOR+0.95% |
HUATAI B2404 | USD900,000 | 9/4/2021 | 9/4/2024 | USD900,000 | 1.30% |
Structured notes (1) | RMB500,843 | Note (1) | Note (1) | RMB500,843 | Note (1) |
Book value as at | Book value as at | |||
Name | 1 January 2023 | Increase | Decrease | 31 December 2023 |
RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | |
13 HUATAI 02 | 6,177,782 | 128,218 | (6,306,000) | - |
18 HUATAI G2 | 1,003,869 | 37,831 | (1,041,700) | - |
20 HUATAI G1 | 8,182,656 | 56,544 | (8,239,200) | - |
20 HUATAI G6 | 3,251,653 | 47,547 | (3,299,200) | - |
20 HUATAI G7 | 3,513,690 | 122,810 | (3,636,500) | - |
20 HUATAI G9 | 4,009,121 | 142,479 | (4,151,600) | - |
21 HUATAI G1 | - | 4,279,016 | (143,200) | 4,135,816 |
21 HUATAI G3 | - | 5,286,842 | (171,000) | 5,115,842 |
21 HUATAI G5 | - | 4,210,028 | (131,200) | 4,078,828 |
21 HUATAI G7 | - | 2,104,717 | (68,000) | 2,036,717 |
21 HUATAI 09 | - | 2,631,376 | (86,250) | 2,545,126 |
21 HUATAI 11 | - | 1,559,601 | (45,450) | 1,514,151 |
21 HUATAI 13 | - | 2,182,074 | (68,250) | 2,113,824 |
21 HUATAI 15 | - | 2,283,852 | (70,840) | 2,213,012 |
22 HUATAI G2 | - | 2,066,498 | (48,600) | 2,017,898 |
22 HUATAI G3 | - | 3,093,408 | (69,900) | 3,023,508 |
22 HUATAI G6 | - | 3,714,463 | (103,320) | 3,611,143 |
22 HUATAI G8 | - | 1,545,630 | (43,050) | 1,502,580 |
22 HUATAI 12 | - | 4,131,236 | (129,600) | 4,001,636 |
HUATAI B2302c | 2,802,824 | 11,082 | (2,813,906) | - |
HUATAI B2404 | - | 6,471,560 | (82,868) | 6,388,692 |
Structured notes (1) | 121,154 | 504,716 | (121,154) | 504,716 |
Total | 29,062,749 | 46,611,528 | (30,870,788) | 44,803,489 |
(1)
As at 31 December 2024, no structured note would mature within one year (as at 31
December 2023: RMB504.72 million).
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 129 -
53.
Long-term bonds
As at 31 December 2024
Nominal | |||||
Name | Par value | Issuance date | Due date | Issue amount | interest rate |
Original currency | Original currency | ||||
20 HUATAI G3 | RMB3,500,000 | 29/4/2020 | 29/4/2025 | RMB3,500,000 | 2.90% |
20 HUATAI G4 | RMB3,000,000 | 21/5/2020 | 21/5/2025 | RMB3,000,000 | 3.20% |
21 HUATAI G4 | RMB6,000,000 | 17/5/2021 | 17/5/2026 | RMB6,000,000 | 3.71% |
21 HUATAI G6 | RMB2,000,000 | 24/5/2021 | 24/5/2026 | RMB2,000,000 | 3.63% |
21 HUATAI 12 | RMB2,700,000 | 7/9/2021 | 7/9/2031 | RMB2,700,000 | 3.78% |
21 HUATAI 14 | RMB3,400,000 | 18/10/2021 | 18/10/2031 | RMB3,400,000 | 3.99% |
21 HUATAI 16 | RMB1,100,000 | 25/10/2021 | 25/10/2031 | RMB1,100,000 | 3.94% |
22 HUATAI G1 | RMB5,000,000 | 14/2/2022 | 14/2/2025 | RMB5,000,000 | 2.79% |
22 HUATAI G4 | RMB2,000,000 | 5/9/2022 | 5/9/2025 | RMB2,000,000 | 2.52% |
22 HUATAI G5 | RMB3,000,000 | 13/9/2022 | 13/9/2025 | RMB3,000,000 | 2.50% |
22 HUATAI G7 | RMB1,400,000 | 21/11/2022 | 21/11/2027 | RMB1,400,000 | 3.18% |
22 HUATAI 10 | RMB2,000,000 | 12/12/2022 | 12/12/2025 | RMB2,000,000 | 3.35% |
22 HUATAI 11 | RMB500,000 | 12/12/2022 | 12/12/2027 | RMB500,000 | 3.49% |
23 HUATAI G1 | RMB4,000,000 | 10/1/2023 | 10/1/2025 | RMB4,000,000 | 2.92% |
23 HUATAI G2 | RMB800,000 | 16/1/2023 | 16/1/2025 | RMB800,000 | 3.00% |
23 HUATAI G3 | RMB2,000,000 | 16/1/2023 | 16/1/2028 | RMB2,000,000 | 3.48% |
23 HUATAI G4 | RMB4,500,000 | 6/2/2023 | 6/2/2026 | RMB4,500,000 | 3.23% |
23 HUATAI G5 | RMB4,000,000 | 13/2/2023 | 13/2/2028 | RMB4,000,000 | 3.39% |
23 HUATAI G6 | RMB1,500,000 | 27/2/2023 | 27/2/2026 | RMB1,500,000 | 3.14% |
23 HUATAI G7 | RMB2,200,000 | 27/2/2023 | 27/2/2028 | RMB2,200,000 | 3.36% |
23 HUATAI G8 | RMB1,700,000 | 10/5/2023 | 10/7/2025 | RMB1,700,000 | 2.82% |
23 HUATAI G9 | RMB700,000 | 10/5/2023 | 10/5/2028 | RMB700,000 | 3.07% |
23 HUATAI 10 | RMB2,000,000 | 24/8/2023 | 24/8/2026 | RMB2,000,000 | 2.64% |
23 HUATAI 11 | RMB2,500,000 | 21/9/2023 | 21/9/2026 | RMB2,500,000 | 2.89% |
23 HUATAI 13 | RMB1,000,000 | 16/10/2023 | 16/10/2025 | RMB1,000,000 | 2.80% |
23 HUATAI 14 | RMB1,600,000 | 16/10/2023 | 16/10/2033 | RMB1,600,000 | 3.35% |
23 HUATAI 15 | RMB1,000,000 | 6/11/2023 | 6/8/2026 | RMB1,000,000 | 2.83% |
23 HUATAI 16 | RMB2,500,000 | 6/11/2023 | 6/11/2033 | RMB2,500,000 | 3.30% |
23 HUATAI F2 | RMB2,800,000 | 27/11/2023 | 27/11/2026 | RMB2,800,000 | 3.07% |
23 HUATAI F4 | RMB3,600,000 | 15/12/2023 | 15/12/2026 | RMB3,600,000 | 3.08% |
20 HUATAI C1 | RMB5,000,000 | 13/11/2020 | 13/11/2025 | RMB5,000,000 | 4.48% |
21 HUATAI C1 | RMB9,000,000 | 29/1/2021 | 29/1/2026 | RMB9,000,000 | 4.50% |
HUATAI B2604 | USD500,000 | 9/4/2021 | 9/4/2026 | USD500,000 | 2.00% |
HUATAI B2503 | USD1,000,000 | 3/3/2022 | 3/3/2025 | USD1,000,000 | 2.38% |
HUATAI B2509 | RMB3,025,000 | 14/9/2022 | 14/9/2025 | RMB3,025,000 | 2.85% |
HUATAI B2608 | USD400,000 | 9/8/2023 | 9/8/2026 | USD400,000 | 5.25% |
HUATAI B2611 | USD800,000 | 29/11/2023 | 29/11/2026 | USD800,000 | SOFR + 0.9% |
Structured notes (1) | RMB3,030,000 | Note (1) | Note (1) | RMB3,030,000 | Note (1) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
53.
Long-term bonds
- continued
As at 31 December 2024 - continued
- 130 -
Book value as at | Book value as at | |||
Name | 1 January 2024 | Increase | Decrease | 31 December 2024 |
RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | |
20 HUATAI G3 | 3,567,318 | - | (3,567,318) | - |
20 HUATAI G4 | 3,058,017 | - | (3,058,017) | - |
21 HUATAI G4 | 6,135,944 | 223,782 | (222,600) | 6,137,126 |
21 HUATAI G6 | 2,042,945 | 72,994 | (72,600) | 2,043,339 |
21 HUATAI 12 | 2,730,840 | 102,230 | (102,060) | 2,731,010 |
21 HUATAI 14 | 3,427,143 | 135,724 | (135,660) | 3,427,207 |
21 HUATAI 16 | 1,107,853 | 43,361 | (43,340) | 1,107,874 |
22 HUATAI G1 | 5,120,528 | - | (5,120,528) | - |
22 HUATAI G4 | 2,015,297 | - | (2,015,297) | - |
22 HUATAI G5 | 3,020,889 | - | (3,020,889) | - |
22 HUATAI G7 | 1,404,717 | 44,576 | (44,520) | 1,404,773 |
22 HUATAI 10 | 2,002,581 | - | (2,002,581) | - |
22 HUATAI 11 | 500,628 | 17,524 | (17,450) | 500,702 |
23 HUATAI G1 | 4,113,345 | - | (4,113,345) | - |
23 HUATAI G2 | 822,900 | - | (822,900) | - |
23 HUATAI G3 | 2,065,894 | 69,841 | (69,600) | 2,066,135 |
23 HUATAI G4 | 4,629,523 | 146,281 | (145,350) | 4,630,454 |
23 HUATAI G5 | 4,117,997 | 136,000 | (135,600) | 4,118,397 |
23 HUATAI G6 | 1,539,132 | 47,358 | (47,100) | 1,539,390 |
23 HUATAI G7 | 2,261,221 | 74,139 | (73,920) | 2,261,440 |
23 HUATAI G8 | 1,730,405 | - | (1,730,405) | - |
23 HUATAI G9 | 713,520 | 21,560 | (21,490) | 713,590 |
23 HUATAI 10 | 2,017,583 | 53,243 | (52,800) | 2,018,026 |
23 HUATAI 11 | 2,518,935 | 72,673 | (72,250) | 2,519,358 |
23 HUATAI 13 | 1,005,417 | - | (1,005,417) | - |
23 HUATAI 14 | 1,610,427 | 53,671 | (53,600) | 1,610,498 |
23 HUATAI 15 | 1,003,315 | 29,197 | (28,300) | 1,004,212 |
23 HUATAI 16 | 2,510,029 | 84,620 | (82,500) | 2,512,149 |
23 HUATAI F2 | 2,808,118 | 85,960 | (85,960) | 2,808,118 |
23 HUATAI F4 | 3,601,796 | 111,953 | (110,880) | 3,602,869 |
20 HUATAI C1 | 5,028,420 | - | (5,028,420) | - |
21 HUATAI C1 | 9,370,679 | 406,805 | (405,000) | 9,372,484 |
HUATAI B2604 | 3,550,894 | 130,349 | (71,904) | 3,609,339 |
HUATAI B2503 | 7,123,519 | - | (7,123,519) | - |
HUATAI B2509 | 3,044,890 | - | (3,044,890) | - |
HUATAI B2608 | 2,876,402 | 201,996 | (151,001) | 2,927,397 |
HUATAI B2611 | 5,685,678 | 452,832 | (360,562) | 5,777,948 |
Structured notes (1) | 3,127,773 | 99,773 | - | 3,227,546 |
Total | 115,012,512 | 2,918,442 | (44,259,573) | 73,671,381 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
53.
Long-term bonds
- continued
- 131 -
As at 31 December 2023
Nominal | |||||
Name | Par value | Issuance date | Due date | Issue amount | interest rate |
Original currency | Original currency | ||||
20 HUATAI G3 | RMB3,500,000 | 29/4/2020 | 29/4/2025 | RMB3,500,000 | 2.90% |
20 HUATAI G4 | RMB3,000,000 | 21/5/2020 | 21/5/2025 | RMB3,000,000 | 3.20% |
21 HUATAI G1 | RMB4,000,000 | 20/1/2021 | 20/1/2024 | RMB4,000,000 | 3.58% |
21 HUATAI G3 | RMB5,000,000 | 26/4/2021 | 26/4/2024 | RMB5,000,000 | 3.42% |
21 HUATAI G4 | RMB6,000,000 | 17/5/2021 | 17/5/2026 | RMB6,000,000 | 3.71% |
21 HUATAI G5 | RMB4,000,000 | 24/5/2021 | 24/5/2024 | RMB4,000,000 | 3.28% |
21 HUATAI G6 | RMB2,000,000 | 24/5/2021 | 24/5/2026 | RMB2,000,000 | 3.63% |
21 HUATAI G7 | RMB2,000,000 | 15/6/2021 | 15/6/2024 | RMB2,000,000 | 3.40% |
21 HUATAI 09 | RMB2,500,000 | 21/6/2021 | 21/6/2024 | RMB2,500,000 | 3.45% |
21 HUATAI 11 | RMB1,500,000 | 7/9/2021 | 7/9/2024 | RMB1,500,000 | 3.03% |
21 HUATAI 12 | RMB2,700,000 | 7/9/2021 | 7/9/2031 | RMB2,700,000 | 3.78% |
21 HUATAI 13 | RMB2,100,000 | 18/10/2021 | 18/10/2024 | RMB2,100,000 | 3.25% |
21 HUATAI 14 | RMB3,400,000 | 18/10/2021 | 18/10/2031 | RMB3,400,000 | 3.99% |
21 HUATAI 15 | RMB2,200,000 | 25/10/2021 | 25/10/2024 | RMB2,200,000 | 3.22% |
21 HUATAI 16 | RMB1,100,000 | 25/10/2021 | 25/10/2031 | RMB1,100,000 | 3.94% |
22 HUATAI G1 | RMB5,000,000 | 14/2/2022 | 14/2/2025 | RMB5,000,000 | 2.79% |
22 HUATAI G2 | RMB2,000,000 | 15/8/2022 | 15/8/2024 | RMB2,000,000 | 2.43% |
22 HUATAI G3 | RMB3,000,000 | 26/8/2022 | 26/8/2024 | RMB3,000,000 | 2.33% |
22 HUATAI G4 | RMB2,000,000 | 5/9/2022 | 5/9/2025 | RMB2,000,000 | 2.52% |
22 HUATAI G5 | RMB3,000,000 | 13/9/2022 | 13/9/2025 | RMB3,000,000 | 2.50% |
22 HUATAI G6 | RMB3,600,000 | 21/11/2022 | 21/11/2024 | RMB3,600,000 | 2.87% |
22 HUATAI G7 | RMB1,400,000 | 21/11/2022 | 21/11/2027 | RMB1,400,000 | 3.18% |
22 HUATAI G8 | RMB1,500,000 | 5/12/2022 | 5/12/2024 | RMB1,500,000 | 2.87% |
22 HUATAI 10 | RMB2,000,000 | 12/12/2022 | 12/12/2025 | RMB2,000,000 | 3.35% |
22 HUATAI 11 | RMB500,000 | 12/12/2022 | 12/12/2027 | RMB500,000 | 3.49% |
22 HUATAI 12 | RMB4,000,000 | 22/12/2022 | 22/12/2024 | RMB4,000,000 | 3.24% |
23 HUATAI G1 | RMB4,000,000 | 10/1/2023 | 10/1/2025 | RMB4,000,000 | 2.92% |
23 HUATAI G2 | RMB800,000 | 16/1/2023 | 16/1/2025 | RMB800,000 | 3.00% |
23 HUATAI G3 | RMB2,000,000 | 16/1/2023 | 16/1/2028 | RMB2,000,000 | 3.48% |
23 HUATAI G4 | RMB4,500,000 | 6/2/2023 | 6/2/2026 | RMB4,500,000 | 3.23% |
23 HUATAI G5 | RMB4,000,000 | 13/2/2023 | 13/2/2028 | RMB4,000,000 | 3.39% |
23 HUATAI G6 | RMB1,500,000 | 27/2/2023 | 27/2/2026 | RMB1,500,000 | 3.14% |
23 HUATAI G7 | RMB2,200,000 | 27/2/2023 | 27/2/2028 | RMB2,200,000 | 3.36% |
23 HUATAI G8 | RMB1,700,000 | 10/5/2023 | 10/7/2025 | RMB1,700,000 | 2.82% |
23 HUATAI G9 | RMB700,000 | 10/5/2023 | 10/5/2028 | RMB700,000 | 3.07% |
23 HUATAI 10 | RMB2,000,000 | 24/8/2023 | 24/8/2026 | RMB2,000,000 | 2.64% |
23 HUATAI 11 | RMB2,500,000 | 21/9/2023 | 21/9/2026 | RMB2,500,000 | 2.89% |
23 HUATAI 13 | RMB1,000,000 | 16/10/2023 | 16/10/2025 | RMB1,000,000 | 2.80% |
23 HUATAI 14 | RMB1,600,000 | 16/10/2023 | 16/10/2033 | RMB1,600,000 | 3.35% |
23 HUATAI 15 | RMB1,000,000 | 6/11/2023 | 6/8/2026 | RMB1,000,000 | 2.83% |
23 HUATAI 16 | RMB2,500,000 | 6/11/2023 | 6/11/2033 | RMB2,500,000 | 3.30% |
23 HUATAI F2 | RMB2,800,000 | 27/11/2023 | 27/11/2026 | RMB2,800,000 | 3.07% |
23 HUATAI F4 | RMB3,600,000 | 15/12/2023 | 15/12/2026 | RMB3,600,000 | 3.08% |
20 HUATAI C1 | RMB5,000,000 | 13/11/2020 | 13/11/2025 | RMB5,000,000 | 4.48% |
21 HUATAI C1 | RMB9,000,000 | 29/1/2021 | 29/1/2026 | RMB9,000,000 | 4.50% |
HUATAI B2404 | USD900,000 | 9/4/2021 | 9/4/2024 | USD900,000 | 1.30% |
HUATAI B2604 | USD500,000 | 9/4/2021 | 9/4/2026 | USD500,000 | 2.00% |
HUATAI B2503 | USD1,000,000 | 3/3/2022 | 3/3/2025 | USD1,000,000 | 2.38% |
HUATAI B2509 | CNH3,025,000 | 14/9/2022 | 14/9/2025 | CNH3,025,000 | 2.85% |
HUATAI B2608 | USD400,000 | 9/8/2023 | 9/8/2026 | USD400,000 | 5.25% |
HUATAI B2611 | USD800,000 | 29/11/2023 | 29/11/2026 | USD800,000 | SOFR + 0.90% |
Structured notes (1) | RMB3,030,000 | Note (1) | Note (1) | RMB3,030,000 | Note (1) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
53.
Long-term bonds
- continued
As at 31 December 2023 - continued
- 132 -
Book value as at | Book value as at | |||
Name | 1 January 2023 | Increase | Decrease | 31 December 2023 |
RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | |
20 HUATAI G3 | 3,566,652 | 102,166 | (101,500) | 3,567,318 |
20 HUATAI G4 | 3,057,447 | 96,570 | (96,000) | 3,058,017 |
21 HUATAI G1 | 4,134,487 | - | (4,134,487) | - |
21 HUATAI G3 | 5,114,197 | - | (5,114,197) | - |
21 HUATAI G4 | 6,134,805 | 223,739 | (222,600) | 6,135,944 |
21 HUATAI G5 | 4,077,517 | - | (4,077,517) | - |
21 HUATAI G6 | 2,042,565 | 72,980 | (72,600) | 2,042,945 |
21 HUATAI G7 | 2,036,063 | - | (2,036,063) | - |
21 HUATAI 09 | 2,544,308 | - | (2,544,308) | - |
21 HUATAI 11 | 1,513,806 | - | (1,513,806) | - |
21 HUATAI 12 | 2,730,676 | 102,224 | (102,060) | 2,730,840 |
21 HUATAI 13 | 2,113,678 | - | (2,113,678) | - |
21 HUATAI 14 | 3,427,081 | 135,722 | (135,660) | 3,427,143 |
21 HUATAI 15 | 2,212,859 | - | (2,212,859) | - |
21 HUATAI 16 | 1,107,833 | 43,360 | (43,340) | 1,107,853 |
22 HUATAI G1 | 5,118,848 | 141,180 | (139,500) | 5,120,528 |
22 HUATAI G2 | 2,017,070 | - | (2,017,070) | - |
22 HUATAI G3 | 3,022,110 | - | (3,022,110) | - |
22 HUATAI G4 | 2,014,753 | 50,944 | (50,400) | 2,015,297 |
22 HUATAI G5 | 3,019,971 | 75,918 | (75,000) | 3,020,889 |
22 HUATAI G6 | 3,610,774 | - | (3,610,774) | - |
22 HUATAI G7 | 1,404,662 | 44,575 | (44,520) | 1,404,717 |
22 HUATAI G8 | 1,502,007 | - | (1,502,007) | - |
22 HUATAI 10 | 2,002,083 | 67,498 | (67,000) | 2,002,581 |
22 HUATAI 11 | 500,556 | 17,522 | (17,450) | 500,628 |
22 HUATAI 12 | 3,999,798 | - | (3,999,798) | - |
23 HUATAI G1 | - | 4,113,345 | - | 4,113,345 |
23 HUATAI G2 | - | 822,900 | - | 822,900 |
23 HUATAI G3 | - | 2,065,894 | - | 2,065,894 |
23 HUATAI G4 | - | 4,629,523 | - | 4,629,523 |
23 HUATAI G5 | - | 4,117,997 | - | 4,117,997 |
23 HUATAI G6 | - | 1,539,132 | - | 1,539,132 |
23 HUATAI G7 | - | 2,261,221 | - | 2,261,221 |
23 HUATAI G8 | - | 1,730,405 | - | 1,730,405 |
23 HUATAI G9 | - | 713,520 | - | 713,520 |
23 HUATAI 10 | - | 2,017,583 | - | 2,017,583 |
23 HUATAI 11 | - | 2,518,935 | - | 2,518,935 |
23 HUATAI 13 | - | 1,005,417 | - | 1,005,417 |
23 HUATAI 14 | - | 1,610,427 | - | 1,610,427 |
23 HUATAI 15 | - | 1,003,315 | - | 1,003,315 |
23 HUATAI 16 | - | 2,510,029 | - | 2,510,029 |
23 HUATAI F2 | - | 2,808,118 | - | 2,808,118 |
23 HUATAI F4 | - | 3,601,796 | - | 3,601,796 |
20 HUATAI C1 | 5,027,690 | 224,730 | (224,000) | 5,028,420 |
21 HUATAI C1 | 9,368,951 | 406,728 | (405,000) | 9,370,679 |
HUATAI B2404 | 6,280,411 | - | (6,280,411) | - |
HUATAI B2604 | 3,491,943 | 129,778 | (70,827) | 3,550,894 |
HUATAI B2503 | 7,000,146 | 291,941 | (168,568) | 7,123,519 |
HUATAI B2509 | 3,041,406 | 89,697 | (86,213) | 3,044,890 |
HUATAI B2608 | - | 2,876,402 | - | 2,876,402 |
HUATAI B2611 | - | 5,685,678 | - | 5,685,678 |
Structured notes (1) | 2,119,436 | 1,359,181 | (350,844) | 3,127,773 |
Total | 110,356,589 | 51,308,090 | (46,652,167) | 115,012,512 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
53.
Long-term bonds
- continued
As at 31 December 2023 - continued
- 133 -
(1)
The Company has not issued long-term structured notes for the year ended 31 December
2024 (for the year ended 31 December 2023: 2 tranches). As at 31 December 2024, no
long-term structured note due within one year is classified as "Long-term bonds due
Long-term bank loans
(a)
Analysed by nature:
As at 31 December | ||
2024 | 2023 | |
Unsecured bank loans | - | 647,052 |
Less: credit bank loans due within one year | - | - |
Total | - | 647,052 |
(b)
Analysed by maturity:
As at 31 December | ||
2024 | 2023 | |
Maturity within five years | - | 647,052 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 134 -
Share capital, reserves and retained profits
(a)
Movements in components of equity
The reconciliation between the opening and closing balances of each component of the Group's consolidated equity is set out in the consolidated
statement of changes in equity. Details of the changes in the Company's individual components of equity between the beginning and the end of the
year are set out below:
| Reserves | |||||||||||
Other equity | Treasury | Capital | Surplus | General | Fair value | Translation | Retained | ||||
Note | Share capital | instruments | shares | reserve | reserve | reserve | reserve | reserve | profits | Total | |
As at 1 January 2024 | 9,074,663 | 25,700,000 | (1,064,173) | 67,999,460 | 8,838,000 | 17,889,908 | 35,605 | 18,981 | 26,560,769 | 155,053,213 | |
Changes in equity for 2024 | |||||||||||
Profit for the year | - | - | - | - | - | - | - | - | 8,890,757 | 8,890,757 | |
Other comprehensive income | - | - | - | - | - | - | 372,834 | - | - | 372,834 | |
Total comprehensive income | - | - | - | - | - | - | 372,834 | - | 8,890,757 | 9,263,591 | |
Issue of perpetual subordinated bonds | - | 2,600,000 | - | (2,698) | - | - | - | - | - | 2,597,302 | |
Equity-settled share-based payments | - | - | 112,478 | 31,852 | - | - | - | - | - | 144,330 | |
Acquisition of treasury shares | (47,361) | - | 851,150 | (803,789) | - | - | - | - | - | - | |
Appropriation to surplus reserve | - | - | - | - | 889,076 | - | - | - | (889,076) | - | |
Appropriation to general reserve | - | - | - | - | - | 1,779,050 | - | - | (1,779,050) | - | |
Dividends declared to ordinary | - | - | - | - | - | - | - | - | (5,236,731) | (5,236,731) | |
shareholders for the year | |||||||||||
Dividends payable to perpetual | - | - | - | - | - | - | - | - | (935,130) | (935,130) | |
subordinated bonds | |||||||||||
Others | - | - | - | (117) | (14) | (29) | - | - | (100) | (260) | |
As at 31 December 2024 | 64 | 9,027,302 | 28,300,000 | (100,545) | 67,224,708 | 9,727,062 | 19,668,929 | 408,439 | 18,981 | 26,611,439 | 160,886,315 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
55.
Share capital, reserves and retained profits
- continued
(a)
Movements in components of equity
- continued
- 135 -
Reserves | |||||||||||
Other equity | Treasury | Capital | Surplus | General | Fair value | Translation | Retained | ||||
Note | Share capital | instruments | shares | reserve | reserve | reserve | reserve | reserve | profits | Total | |
As at 1 January 2023 | 9,075,589 | 19,200,000 | (1,202,324) | 68,927,383 | 7,790,909 | 15,795,052 | 28,164 | 18,981 | 24,000,453 | 143,634,207 | |
Adjustments | - | - | - | - | 419 | 839 | - | - | 2,937 | 4,195 | |
As at 1 January 2023 | 9,075,589 | 19,200,000 | (1,202,324) | 68,927,383 | 7,791,328 | 15,795,891 | 28,164 | 18,981 | 24,003,390 | 143,638,402 | |
Changes in equity for 2023 | |||||||||||
Profit for the year | - | - | - | - | - | - | - | - | 10,466,721 | 10,466,721 | |
Other comprehensive income | - | - | - | - | - | - | 7,441 | - | - | 7,441 | |
Total comprehensive income | - | - | - | - | - | - | 7,441 | - | 10,466,721 | 10,474,162 | |
Issue of perpetual subordinated bonds | - | 6,500,000 | - | (7,148) | - | - | - | - | - | 6,492,852 | |
Equity-settled share-based payments | - | - | 130,514 | 72,582 | - | - | - | - | - | 203,096 | |
Appropriation to surplus reserve | - | - | - | - | 1,046,672 | - | - | - | (1,046,672) | - | |
Appropriation to general reserve | - | - | - | - | - | 2,094,017 | - | - | (2,094,017) | - | |
Dividends declared to ordinary | |||||||||||
shareholders for the year | - | - | - | - | - | - | - | - | (4,063,223) | (4,063,223) | |
Dividends payable to perpetual | |||||||||||
subordinated bonds | - | - | - | - | - | - | - | - | (705,430) | (705,430) | |
Others | (926) | - | 7,637 | (993,357) | - | - | - | - | - | (986,646) | |
As at 31 December 2023 | 64 | 9,074,663 | 25,700,000 | (1,064,173) | 67,999,460 | 8,838,000 | 17,889,908 | 35,605 | 18,981 | 26,560,769 | 155,053,213 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
55.
Share capital, reserves and retained profits
- continued
- 136 -
Share capital
All shares issued by the Company are fully paid common shares. The par value per share is
RMB1. The Company's number of shares issued and their nominal value are as follows:
As at 31 December 2024 | As at 31 December 2023 | |||
Number | Nominal | Number | Nominal | |
of shares | value | of shares | value | |
(Thousand) | (Thousand) | |||
Registered, issued and fully paid: | ||||
A shares of RMB1 each | 7,308,256 | 7,308,256 | 7,355,617 | 7,355,617 |
H shares of RMB1 each | 1,719,046 | 1,719,046 | 1,719,046 | 1,719,046 |
Total | 9,027,302 | 9,027,302 | 9,074,663 | 9,074,663 |
On 1 June 2015, the Company completed its initial public offering of 1,400,000,000 H shares on
the Main Board of the Hong Kong Stock Exchange. On 19 June 2015, the Company partially
exercised the over-allotment option and issued 162,768,800 H shares.
According to the relevant requirements of PRC regulators, existing shareholders of the state-
owned shares of the Company have transferred an aggregate number of 156,276,880 state-owned
shares of the Company to the National Social Security Fund of the PRC, and such shares were
then converted into H shares on a one-for-one basis.
In July 2018, the Company completed private placement of issuance of 1,088,731,200 new A
shares.
On 20 June 2019, the Company completed its issuance of 75,013,636 GDRs, representing
750,136,360 underlying A shares, and listed on the London Stock Exchange. On 27 June 2019,
the Company exercised the over-allotment option and issued additional 7,501,364 GDRs,
representing 75,013,640 underlying A shares. In total, the Company has issued 82,515,000
GDRs, representing 825,150,000 new A shares with nominal value of RMB1.00 each. The total
paid-up share capital of the Company after the change was RMB9,076,650,000.
In 2022, the Company completed the repurchase and cancellation of 1,060,973 restricted A
Shares, after which the Company's registered capital was RMB9,075,589,027 and the total share
capital of the Company was 9,075,589,027 shares of RMB1 each.
In 2023, the Company completed the repurchase and cancellation of 925,692 restricted A Share,
after which the Company's registered capital was RMB9,074,663,335 and the total share capital
of the Company was 9,074,663,335 shares of RMB1 each.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
55.
Share capital, reserves and retained profits
- continued
(b)
Share capita
l
- continued
- 137 -
In January 2024, the Company completed the repurchase and cancellation of 45,278,495 A-share
shares stored in the Company's special securities account, after which the Company's registered
capital was RMB 9,029,384,840 and the total share capital of the Company was 9,029,384,840
shares of RMB1 each.
In September 2024, the Company completed the repurchase and cancellation of 2,082,559
restricted A Share, after which the Company's registered capital was RMB 9,027,302,281 and
the total share capital of the Company was 9,027,302,281 shares of RMB1 each.
The H shares and GDRs representing A shares rank pari passu in all respects with the existing
Other equity instruments
As at 31 December | ||
2024 | 2023 | |
Perpetual subordinated bonds | 28,300,000 | 25,700,000 |
As approved by the CSRC, the Company issued nine batches of perpetual subordinated bonds
("21 Huatai Y1", "21 Huatai Y2", "21 Huatai Y3", "22 Huatai Y1", "22 Huatai Y2", "22 Huatai
Y3","23 Huatai Y1","23 Huatai Y2" and "24 Huatai Y1") with an initial interest rate of 3.85%,
4.00%, 3.80%, 3.49%, 3.59%, 3.20%, 3.46%, 3.58% and 2.39% on 15 September 2021, 26
October 2021, 16 November 2021, 26 January 2022, 11 July 2022, 21 October 2022, 8
September 2023, 20 October 2023 and 26 November 2024, respectively. The perpetual
subordinated bonds have no fixed maturity dates and the Company has an option to redeem the
bonds at principal amounts plus any accrued interest on the fifth interest payment date or any
interest payment date afterwards.
The interest rate for perpetual subordinated bonds is fixed in the first 5 years and will be repriced
every 5 years. The repriced interest rate is determined as the sum of the current base rate and the
initial spread plus 200 or 300bp. The current base rate is defined as the average yield of 5 years
treasury from the interbank fixed rate bond yield curve published on China Bond webpage 5
working days before the adjustment.
The issuer has the option to defer interest payment, except in the event of mandatory interest
payments, so that at each interest payment date, the issuer may choose to defer the interest
payment to the next payment date for the current period as well as all interest and accreted
interest already deferred, without being subject to any limitation with respect to the number of
deferrals. Mandatory interest payment events are limited to dividend distributions to ordinary
equity holders and reductions of registered capital.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
55.
Share capital, reserves and retained profits
- continued
(c)
Other equity instruments
- continued
- 138 -
As the Company declared dividend distribution to ordinary equity holders during the 2023
annual general meeting held on 20 June 2024, the Company has recognised interest payable to
the perpetual subordinated bonds amounted to RMB 935,130 thousand.
The perpetual subordinated bonds issued by the Company are classified as equity instruments
and presented under equity in the Group's statement of financial position.
Treasury shares
As at 31 | ||||
As at 1 January | Increase for | Decrease for | December | |
2024 | the year | the year | 2024 | |
Share repurchase | 835,802 | - | (835,802) | - |
Restricted Share Incentive | ||||
Scheme of A Shares | 228,371 | - | (127,826) | 100,545 |
Total | 1,064,173 | - | (963,628) | 100,545 |
On 24 November 2023, the Company held 2023 Second Extraordinary General Meeting, 2023
Third A Share Class Meeting and 2023 Third H Share Class Meeting, where the resolution on
"
The Company's Cancellation of Repurchased A shares and Reduction of Registered Capital
"
was considered and approved.
It was agreed that the Company would cancel the remaining
repurchased A shares totaling 45,278,495 shares and accordingly reduce the registered capital.
On 10 January 2024, the Company completed the cancellation of the repurchased A shares,
reducing the share capital and registered capital by RMB45.28 million, reducing the capital
reserve by RMB790.52 million, and reducing the treasury shares by RMB835.80 million.
On 12 April 2024, the Board and the Supervisory Committee of the Company respectively
considered and approved the Resolution on Repurchase and Cancellation of Part of the Restricted
A Shares by the Company.
Based on the achievement of performance conditions at the company
level and individual level, the total number of restricted shares that could be unlocked this time
was 13,269,954 shares, which became floating shares not subject to selling restrictions on 16
May 2024, and shares subject to selling restrictions was reduced to 16,008,438 Shares in total.
According to the Restricted Share Incentive Scheme of A Shares Plan, the share repurchase's
obligation was reduced accordingly by RMB103.51 million.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
55.
Share capital, reserves and retained profits
- continued
(d)
Treasury shares
- continued
- 139 -
On 20 June 2024, pursuant to the decision of the 2023 Annual General Meeting, the annual profit
distribution was carried out in the form of cash dividends. A cash dividend of RMB4.30 (tax
included) per 10 shares was distributed to the shareholders. The company's cash dividends for
the 2023 fiscal year were paid on August 16, 2024. In accordance with the rules of the Restricted
Share Incentive Scheme of A Shares, the share repurchase obligation was reduced by RMB6.88
million accordingly.
On 20 June 2024, the 2023 annual general meeting of shareholders of Huatai Securities Co., Ltd.,
the First A share Shareholders' Meeting in 2024 and the First H share Shareholders' Meeting in
2024 reviewed and approved the "Proposal on the Company's Repurchase and Cancellation of
Part of A share Restricted Shares". A total of 2,082,559 A share restricted stocks that had been
granted but not yet released from the restricted sale status by 175 incentive targets were
repurchased and cancelled. The repurchase price was RMB7.37 per share, and the obligation for
stock repurchase was correspondingly reduced by RMB15.35 million.
On 30 August 2024, according to the resolution of the 12th meeting of the 6th session of the
Board of Directors, the Company's interim profit distribution in 2024 was carried out in the form
of cash dividends, with a cash dividend of RMB0.15 per share (tax included) distributed. The
Company's interim cash dividends in 2024 were paid on October 25, 2024. According to the
rules of the Restricted Share Incentive Scheme of A Shares, the obligation for this stock
(e)
Capital reserve
Capital reserve mainly includes share premium arising from the issuance of new shares at prices
in excess of face value and the difference between the considerations of acquisition of equity
interests from non-controlling shareholders and the carrying amount of the proportionate net
assets.
(f)
Surplus reserve
Pursuant to the Company Law of the PRC, the Company is required to appropriate 10% of its
net profit to the statutory surplus reserve until the balance reaches 50% of its registered capital.
Subject to the approval of the shareholders, the statutory reserve may be used to offset
accumulated losses, or converted into capital of provided that the balance of the statutory surplus
reserve after such capitalisation is not less than 25% of the registered capital immediately before
the capitalisation.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
55.
Share capital, reserves and retained profits
- continued
- 140 -
(g)
General reserve
General reserve includes general risk reserve and transaction risk reserve.
In accordance with the requirements of the CSRC Circular regarding the Annual Reporting of
Securities Companies in 2007 (Zhengjian Jigou Zi [2007] No. 320) issued on 18 December 2007,
the Company appropriates 10% of its annual net profit to the general risk reserve.
In accordance with the requirements of the CSRC Circular regarding the Annual Reporting of
Securities Companies in 2007 (Zhengjian Jigou Zi [2007] No. 320) issued on 18 December 2007
and in compliance with the Securities Law, for the purpose of covering securities trading losses,
the Company appropriates 10% from its annual net profit to the transaction risk reserve.
In accordance with the requirements of the CSRC No. 94 Provisional Measures on Supervision
and Administration of Risk Provision of Public Offering of Securities Investment Funds, the
Company appropriates 2.5% from its fund custody fee income to the general risk reserve.
The Company's subsidiaries appropriate their profits to the general reserve according to the
applicable local regulations.
(h)
Fair value reserve
The fair value reserve comprises:
-
The cumulative net changes in the fair value of equity securities designated at FVOCI;
and
-
The cumulative net changes in fair value of debt securities at FVOCI until the assets are
derecognised or reclassified. This amount is adjusted by the amount of loss allowance.
(i)
Cash flow hedges reserve
The cash flow hedges reserve comprises the effective portion of the gain or loss on the hedging
instrument.
(j)
Translation reserve
The translation reserve mainly comprises foreign currency differences arising from the
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
55.
Share capital, reserves and retained profits
- continued
- 141 -
Dividends
Pursuant to the resolution of the general meeting of the shareholders dated 20 June 2024, the
Company was approved to distribute cash dividends of RMB4.30 (tax inclusive) per 10 shares
to the shareholders based on 9,029,384,840 shares, with total cash dividends amounting to
RMB3,883 million(tax inclusive). The cash dividends of the Company were paid on 16 August
2024.
Approved at the 12th meeting of the sixth session of the board of directors on 30 August 2024,
the Company resolved to distribute an interim cash dividend for 2024. Based on the total share
capital of 9,027,302,281 shares outstanding prior to the implementation of the plan, a cash
dividend of RMB 0.15 per share (tax inclusive) will be distributed, amounting to a total cash
distribution of RMB1,354 million (tax inclusive). The interim cash dividends of the Company
Commitments
(a)
Capital commitments
Capital commitments outstanding at 31 December 2024 and 31 December 2023 not provided for
in the consolidated financial statements were as follows:
As at 31 December | ||
2024 | 2023 | |
Contracted, but not provided for | 7,174,588 | 7,156,300 |
The
aforementioned
capital
commitments
mainly
represent
securities
underwriting
commitments, subscribed capital contributions to funds, construction of properties and purchase
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 142 -
Interests in structured entities
(a)
Interests in structured entities consolidated by the Group
Structured entities consolidated by the Group mainly stand for the asset management schemes
where the Group involves as manager and / or as investor. The Group assesses whether the
combination of investments it holds together with its remuneration creates exposure to variability
of returns from the activities of the asset management schemes to a level of such significance
that it indicates that the Group is a principal.
As at 31 December 2024, the Group consolidates 55 structured entities (as at 31 December 2023:
59 structured entities), which are mainly asset management schemes.
As at 31 December 2024,
the total assets of the consolidated structured entities are RMB 35,723 million (as at 31 December
2023: RMB94,908 million), and the carrying amount of interests held by the Group in the
consolidated structured entities are RMB 32,309 million (as at 31 December 2023: RMB86,408
million). For the year ended 31 December 2024 and year ended 31 December 2023, the Group
did not provide financial support to these structured entities.
(b)
Interests in structured entities sponsored by the Group but not consolidated
Structured entities for which the Group served as general partner or manager, therefore has
power over them during the reporting periods are asset management schemes. Except for the
structured entities that the Group has consolidated as set out in Note 57(a), the Group's exposure
to the variable returns in the remaining structured entities in which the Group has interests is not
significant. Besides, the Group did not provide financial support to these structured entities. The
Group therefore did not consolidate these structured entities.
As at 31 December 2024, the total assets of these unconsolidated structured entities managed by
the Group amounted to RMB 621,057 million(as at 31 December 2023: RMB530,502 million).
As at 31 December 2024, the carrying amount of interests held by the Group in these
unconsolidated structured entities are RMB 6,252 million(as at 31 December 2023: RMB7,101
million).
During the year ended 31 December 2024, the Group's profit or loss from these unconsolidated
structured entities including asset management fee and commission income and net investment
losses, amounted to a total gain of RMB 513 million (during the year ended 31 December
2023: asset management fee and commission income and net investment gains amounted to a
total gain of RMB1,576 million)
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
57.
Interests in structured entities
- continued
- 143 -
(c)
Interests in structured entities sponsored by third party institutions
The types of structured entities sponsored by third party institutions that the Group does not
consolidate but in which it holds interests include funds, asset management schemes, trust
schemes, and wealth management products issued by banks or other financial institutions. The
nature and purpose of these structured entities are to generate fees from managing assets on
behalf of investors. These vehicles are financed through the issue of units to investors.
The carrying amount of the related accounts in the consolidated statements of financial position
is equal to the maximum exposure to loss of interests held by the Group in the unconsolidated
structured entities sponsored by third party institutions as at 31 December 2024 and 31 December
2023, which are listed as below:
As at 31 December 2024 | ||
Financial assets | ||
at FVTPL | Total | |
Funds | 60,952,406 | 60,952,406 |
Wealth management products | 7,300,893 | 7,300,893 |
Debt securities | 383,852 | 383,852 |
Total | 68,637,151 | 68,637,151 |
As at 31 December 2023 | ||
Financial assets | ||
at FVTPL | Total | |
Funds | 60,597,720 | 60,597,720 |
Wealth management products | 22,714,060 | 22,714,060 |
Debt securities | 460,035 | 460,035 |
Total | 83,771,815 | 83,771,815 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 144 -
Outstanding litigations
From time to time in the ordinary course of business, the Group is subject to claims and are
parties to legal and regulatory proceedings.
As at 31 December 2024 and 31 December 2023,
based on the court rulings and advices from legal representatives and management judgement,
provision had been made to the claim amounts for the major legal action as listed below.
During the year of 2020, the Group's subsidiary Huatai United Securities Co., Ltd. received the
Notice of Legal Action and relevant litigation materials sent by Shanghai Financial Court. The
plaintiff, Postal Savings Bank of China Co., Ltd., failed to fully cash its investment in "Huatai
Magnate Light Asset-backed Securities", sued to the Court to require the manager (the first
defendant), the legal adviser (the second defendant), the rating agency (the third defendant), the
issuer (the fourth defendant) and Huatai United Securities Co., Ltd., the financial adviser (the
fifth defendant), to bear joint and several liability for the compensation for the plaintiff's
investment loss of RMB527 million and relevant interest. The Shanghai Financial Court made
the judgment of the first instance on 14 April 2023 that Huatai United Securities Co., Ltd. shall
bear joint and several liability. Huatai United Securities Co., Ltd. submitted an application for
appeal, the second-instance trial officially commenced on 26 December 2024, but no verdict
has been rendered as of the approval and issuance date of the financial statements. According to
the opinion of the legal representative and the judgment of the management, the Group has
accrued provision amounting to RMB 675 million for the claim amount.
During the year of 2024, Zhejiang Securities Co., Ltd. and Zhejiang Securities Asset
Management Co., Ltd. filed a tort liability dispute lawsuit against Huatai United Securities Co.,
Ltd. and the manager, alleging that the defendants' improper performance of duties resulted in
substantial losses. The plaintiffs claim joint and several liability for compensation of investment
principal and interest totaling RMB 142 million. The case is currently under trial. According to
the opinion of the legal representative and the judgment of the management, the Group has
accrued provision amounting to RMB 71 million for the claim amount.
As of December 31, 2024, except for the aforementioned cases, the Group is not involved in any
other legal proceedings or arbitrations for which an unfavorable judgment, ruling, or decision, if
rendered, would reasonably be expected to result in a material adverse effect on the Group’s
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 145 -
Related party relationships and transactions
(a)
Relationship of related parties
(i)
Major shareholders
Place of | Registered | Percentage of | Voting | |
Name of the shareholders | registration | share capital | equity interest (%) | rights (%) |
Jiangsu Guoxin | ||||
Investment Group Limited | Nanjing | RMB50 billion | 15.21 | 15.21 |
Jiangsu Communications | ||||
Holdings Co., Ltd. | Nanjing | RMB16.8 billion | 5.42 | 5.42 |
The detailed information of the transactions and balances with Group's major shareholders and
their subsidiaries is set out in Note 59(b)(i).
(ii)
Subsidiaries of the Group
The detailed information of the Group's subsidiaries is set out in Note 24.
(iii)
Associates of the Group
The detailed information of the Group's associates is set out in Note 25.
(iv)
Joint ventures of the Group
The detailed information of the Group's joint ventures is set out in Note 26.
(v)
Other related parties
Other related parties are individuals which include: members of the Board of Directors, the
Board of Supervisors and senior management, and close family members of such individuals.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
59.
Related party relationships and transactions
- continued
- 146 -
(b)
Related parties transactions and balances
Other than as disclosed elsewhere in these consolidated financial statements, the Group had the
following related party transactions and balances:
(i)
Transactions and balances between the Group and major shareholders and their subsidiaries:
As at 31 December | ||
2024 | 2023 | |
Balances at the end of the year: | ||
Right-of-use assets | 142 | - |
Other receivables and prepayments | 43 | 43 |
Financial assets at FVTPL | - | 138,331 |
Accounts payable to brokerage clients | 327,636 | 14,389 |
Other payables and accruals | 3,211 | 3,211 |
Year ended 31 December | ||
2024 | 2023 | |
Transactions during the year: | ||
Fee and commission income | 9,064 | 20,769 |
Net investment gains | 703 | 2,162 |
Operating expense | (3,237) | (199) |
During the year of 2024, the Group has not subscribed the bonds issued by major shareholders
(during the year of 2023: RMB138 million) .
During the year of 2024, the Group has redeemed the bonds issued by major shareholders
amounting to RMB91 million(during the year of 2023: RMB53 million).
During the year of 2024, the Group has paid rental fee to major shareholders and their
subsidiaries for the total amounts of RMB0.18 million(During the year of 2023: nil).
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
59.
Related party relationships and transactions
- continued
(b)
Related parties transactions and balances
- continued
- 147 -
(ii)
Transactions and balances between the Group and associates:
As at 31 December | ||
2024 | 2023 | |
Balances at the end of the year: | ||
Cash and bank balances | 1,240,337 | 1,244,329 |
Right-of-use assets | 66,870 | 17,489 |
Accounts receivable | 109,501 | 111,881 |
Other receivables and prepayments | 3,204 | 2,828 |
Financial assets at FVTPL | 30,559 | 50,510 |
Accounts payable to brokerage clients | 77,858 | 96,223 |
Other payables and accruals | 378 | 1,893 |
Placements from other financial institutions | - | 1,000,383 |
Lease liabilities | 68,342 | 19,078 |
Year ended 31 December | ||
2024 | 2023 | |
Transactions during the year: | ||
Fee and commission income | 244,139 | 311,402 |
Fee and commission expenses | (777) | (682) |
Other income and gains | 3,233 | 2,600 |
Operating expense | (546) | (2,302) |
Interest income | 34,704 | 23,979 |
Interest expenses | (12,413) | (17,544) |
Net investment losses | 3,491 | 7,710 |
During the year of 2024, the Group has subscribed the corporate bond issued by associates for
the total amounts of RMB31 million (during the year of 2023: RMB51 million).
During the year of 2024, the associates have subscribed the non-public corporate bonds issued
by the Group for RMB51 million (during the year of 2023: nil).
During the year of 2024, the capital injection made by the Group into the associates are RMB
211 million (during the year of 2023: RMB1,438 million).
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
59.
Related party relationships and transactions
- continued
(b)
Related parties transactions and balances
- continued
(ii)
Transactions and balances between the Group and associates: - continued
- 148 -
During the year of 2024, the divestment made by the Group from the associates are RMB50
million (during the year of 2023: RMB177 million).
During the year of 2024, the Group has made repurchase agreements with associates for the total
amount of RMB81,389 million (during the year of 2023: RMB89,406 million).
During the year of 2024 , the Group has taken placements from other financial institutions with
associates for the total amount of RMB20,500 million (during the year of 2023: RMB89,320
million).
During the year of 2024, the Group has received dividends from associates for the total amounts
of RMB 1,038 million (during the year of 2023: RMB1,634 million).
During the year of 2024, the Group has paid rental fee to associates for the total amounts of RMB
31 million (during the year of 2023: RMB40 million).
(iii)
Transactions and balances between the Group and joint ventures:
As at 31 December | ||
2024 | 2023 | |
Balances at the end of the year: | ||
Accounts receivable | 8,168 | - |
Accounts payable to brokerage clients | 70,950 | 2,885 |
Year ended 31 December | ||
2024 | 2023 | |
Transactions during the year: | ||
Fee and commission income | 15,772 | 8,525 |
During the year of 2024, the capital injection made by the Group into the joint ventures are
RMB75 million (during the year of 2023: RMB182 million). During the year of 2024, the
divestment made by the Group from the joint ventures are RMB 34 million (during the year of
2023: RMB171 million).
During the year of 2024, the Group has not received dividends from joint venture (during the
year of 2023: RMB22million).
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
59.
Related party relationships and transactions
- continued
(b)
Related parties transactions and balances
- continued
- 149 -
(iv)
Transactions and balances between the Group and other related parties:
As at 31 December | ||
2024 | 2023 | |
Balances at the end of the year: | ||
Accounts payable to brokerage clients | 939 | 5,002 |
Year ended 31 December | ||
2024 | 2023 | |
Transactions during the year: | ||
Fee and commission income | 154 | 77 |
Key management personnel remuneration
During the year ended 31 December 2024, the pre-tax remuneration of current year accrued and
paid to key management personnel of the Company amounted to RMB18.69 million, the total
compensation packages of the key management personnel for the fiscal year 2024 have not been
finalised and will be further disclosed when they are confirmed (the total finalised compensation
packages of the key management personnel for the fiscal year 2023 amounted to RMB48.67
million). This amount includes those payable to the Company's directors and supervisors as
disclosed in Note 16. For the year ended 31 December 2024, the post-employment benefits of
the key management personnel amounted to RMB2.71 million (for the year ended 31 December
(d)
Applicability of the Listing Rules relating to connected transactions
The related party transactions set out in Note 59(b) which constitute connected transactions or
continuing connected transactions as defined in Chapter 14A of the Listing Rules are exempt
from the disclosure requirements in Chapter 14A of the Listing Rules as they are below the de
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 150 -
Segment reporting
Management manages the business operations by the following segments in accordance with the
nature of the operations and the services provided, and the performance measure of business
segments utilised by the Group is profit before income tax:
-
The wealth management segment engages in the trading of stocks, funds, bonds and
futures on behalf of clients, to provide customers with a variety of financial products
sales services and asset allocation services. Moreover, the activities of providing margin
financing, securities lending, securities-backed lendings and sell financial products are
included in this segment.
-
The institutional services segment mainly provides investment banking business to
clients, research and institutional sales, equity securities investments and transactions,
fixed income investments and transactions, OTC financial products and transactions.
-
The investment management segment mainly consists of asset management, private
equity investment, alternative investments and commodities trading and arbitrage.
-
The international business segment mainly includes the overseas business of overseas
subsidiaries.
-
Other segments include other operations of head office, mainly including interest income,
share of profit of associates and joint ventures, interest expenses of working capitals, and
costs and expenses of middle offices and back offices.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
60.
Segment reporting
- continued
- 151 -
(a)
Business segments
For the year ended 31 December 2024
Wealth | Institutional | Investment | International | |||
management | services | management | business | Others | Total | |
Revenue | ||||||
- External | 19,091,303 | 8,254,568 | 2,444,882 | 14,038,765 | 1,491,570 | 45,321,088 |
- Inter-segment | 1,938 | - | - | - | 744,617 | 746,555 |
Other income and gains | 4,715,500 | (85,012) | 214,965 | 4,154,850 | 33,309 | 9,033,612 |
Segment revenue and other | ||||||
income | 23,808,741 | 8,169,556 | 2,659,847 | 18,193,615 | 2,269,496 | 55,101,255 |
Segment expenses | (17,586,912) | (7,172,421) | (1,530,117) | (11,260,104) | (4,569,796) | (42,119,350) |
Segment operating profit / (loss) | 6,221,829 | 997,135 | 1,129,730 | 6,933,511 | (2,300,300) | 12,981,905 |
Share of profit of associates and | ||||||
joint ventures | - | 25 | (767,099) | 8,641 | 3,112,386 | 2,353,953 |
Profit before income tax | 6,221,829 | 997,160 | 362,631 | 6,942,152 | 812,086 | 15,335,858 |
Interest income | 9,364,162 | 1,378,940 | 125,641 | 1,629,306 | 1,368,675 | 13,866,724 |
Interest expenses | (2,981,624) | (3,254,880) | (460,188) | (3,125,104) | (1,367,324) | (11,189,120) |
Depreciation and amortisation | ||||||
expenses | (542,946) | (188,263) | (71,322) | (403,144) | (602,981) | (1,808,656) |
Net reversal of / (provision for) | ||||||
impairment loss on financial | ||||||
assets | (194,720) | 5,011 | (1,503) | (38,485) | (16,572) | (246,269) |
Segment assets | 327,720,741 | 241,651,881 | 42,330,013 | 140,070,224 | 165,201,418 | 916,974,277 |
Additions to non-current | ||||||
segment assets during the year | 151,125 | 222,101 | 21,756 | 257,846 | 1,035,017 | 1,687,845 |
Segment liabilities | (322,892,047) | (237,296,888) | (18,742,412) | (117,355,571) | (28,793,438) | (725,080,356) |
For the year ended 31 December 2023
Wealth | Institutional | Investment | International | |||
management | services | management | business | Others | Total | |
Revenue | ||||||
- External | 19,338,998 | 10,618,400 | 3,040,257 | 10,405,808 | 1,823,151 | 45,226,614 |
- Inter-segment | 539 | - | - | 1,778,984 | 1,779,523 | |
Other income and gains | 3,985,258 | (69,048) | 318,566 | 2,535,500 | 342,500 | 7,112,776 |
Segment revenue and other | ||||||
income | 23,324,795 | 10,549,352 | 3,358,823 | 12,941,308 | 3,944,635 | 54,118,913 |
Segment expenses | (16,634,272) | (7,907,900) | (1,589,098) | (10,648,760) | (4,697,057) | (41,477,087) |
Segment operating profit / (loss) | 6,690,523 | 2,641,452 | 1,769,725 | 2,292,548 | (752,422) | 12,641,826 |
Share of profit of associates and | ||||||
joint ventures | - | (58) | 30,034 | (21,713) | 2,576,521 | 2,584,784 |
Profit before income tax | 6,690,523 | 2,641,394 | 1,799,759 | 2,270,835 | 1,824,099 | 15,226,610 |
Interest income | 10,574,301 | 1,265,381 | 162,001 | 1,242,067 | 1,700,094 | 14,943,844 |
Interest expenses | (4,349,186) | (3,554,129) | (503,181) | (3,787,857) | (1,828,237) | (14,022,590) |
Depreciation and amortisation | ||||||
expenses | (546,262) | (201,901) | (85,673) | (457,062) | (598,367) | (1,889,265) |
Net reversal of / (provision for) | ||||||
impairment loss on financial | ||||||
assets | 485,571 | (9,051) | (110) | (44,423) | (21,041) | 410,946 |
Segment assets | 285,438,957 | 351,844,346 | 28,552,772 | 185,801,651 | 185,514,044 | 1,037,151,770 |
Additions to non-current | ||||||
segment assets during the year | 183,050 | 117,929 | 1,823 | 379,242 | 889,528 | 1,571,572 |
Segment liabilities | (280,739,909) | (347,319,611) | (5,705,664) | (166,977,124) | (54,192,030) | (854,934,338) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
60.
Segment reporting
- continued
(a)
Business segments
- continued
- 152 -
Reconciliations of segment revenues, profit or loss, assets and liabilities:
Year ended 31 December | ||
2024 | 2023 | |
Revenue | ||
Total revenue, gains and other income for segments | 55,101,255 | 54,118,913 |
Elimination of inter-segment revenue | (815,772) | (1,858,492) |
Consolidated revenue, gains and other income | 54,285,483 | 52,260,421 |
Profit | ||
Total profit before income tax for segments | 15,335,858 | 15,226,610 |
Elimination of inter-segment profit | 16,482 | (1,021,946) |
Consolidated profit before income tax | 15,352,340 | 14,204,664 |
As at 31 December | ||
2024 | 2023 | |
Assets | ||
Total assets for segments | 916,974,277 | 1,037,151,770 |
Elimination of inter-segment assets | (102,703,783) | (131,643,381) |
Consolidated total assets | 814,270,494 | 905,508,389 |
Liabilities | ||
Total liabilities for segments | (725,080,356) | (854,934,338) |
Elimination of inter-segment liabilities | 102,703,783 | 131,643,381 |
Consolidated total liabilities | (622,376,573) | (723,290,957) |
For the year ended 31 December 2024 and 31 December 2023, the Group's customer base is
diversified and no customer had transactions which exceeded 10% of the Group's revenue.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
60.
Segment reporting
- continued
- 153 -
(b)
Geographical information
The following table sets out information about the geographical location of (i) the Group's
revenue from external customers and (ii) the Group's property and equipment, investment
properties, goodwill, land-use rights and other intangible assets, interest in associates, interest in
joint ventures and other non-current assets ("specified non-current assets"). The geographical
location of customers is based on the location at which the services were provided. The
geographical location of the specified non-current assets is based on the physical location of the
asset, in the case of property and equipment and other non-current assets, the location of the
operation to which they are allocated, in the case of goodwill, land-use rights and other intangible
assets, and the location of operations, in the case of interest in associates and interest in joint
ventures.
Year ended 31 December 2024 | Year ended 31 December 2023 | |||||
Mainland | Mainland | |||||
China | Overseas | Total | China | Overseas | Total | |
Revenue from external customers | 31,282,323 | 14,038,765 | 45,321,088 | 34,820,806 | 10,405,808 | 45,226,614 |
Other income and gains | 4,809,545 | 4,154,850 | 8,964,395 | 4,498,307 | 2,535,500 | 7,033,807 |
Total | 36,091,868 | 18,193,615 | 54,285,483 | 39,319,113 | 12,941,308 | 52,260,421 |
Year ended 31 December 2024 | Year ended 31 December 2023 | |||||
Mainland | Mainland | |||||
China | Overseas | Total | China | Overseas | Total | |
Specified non-current assets | 30,727,297 | 718,465 | 31,445,762 | 28,603,135 | 10,054,267 | 38,657,402 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 154 -
Financial instruments and risk management
(a)
Risk management policies and structure
(i)
Risk management policies
In order to enhance the Group's scientific, standardised and effective management and operation,
strengthen the capability of defending against risks and ensure the continuous, stable and rapid
development of the Group's businesses, the Group had formulated the Basic System for Risk
Management which had been deliberated and approved by the Board of Directors in accordance
with the Securities Law of the People's Republic of China, the Rules on Supervision over
Securities Companies, the Guidelines on the Internal Control of Securities Companies, the
Regulation on Comprehensive Risk Management of Securities Companies and other relevant
regulations in combination with the business operation and business management. This has
clarified the risk management objectives and principles, the risk appetite and risk tolerance level
of the Group as a whole and for different risk types, the risk management procedures, and the
relevant resource assurance and appraisal mechanisms. In terms of operation management, the
Group had formulated and issued various professional risk management guidelines to clearly
establish the management processes and measures, risk indicators and limits for various types of
risks; in addition, the Group had also formulated policies such as the Administration Measures
for Risk Control Indicators, the Rules on the Risk Management of Subsidiaries, the
Implementation Plan for Stress Test and the Detailed Implementation Rules for Stress Test at
the operation level. In the specific business level, the Group had established business risk
management system or risk management manual based on the risk points of different business
areas and business management lines.
The principal types of risk faced by the Group in daily operation mainly include market risk,
credit risk, liquidity risk, operational risk, information technology risk, reputational risk, model
risk, compliance risk, legal risk, money laundering risk and integrity risk, etc. The Group had
formulated corresponding policies and procedures to identify and analyse these risks, and set up
risk indicators, risk limits and internal risk control processes in combination with the actual
circumstances with a view to continuously manage the above risks through the support of
information systems and effective mechanisms.
Risk management is a shared responsibility of all the Group's employees. The Group
continuously enhances the risk management awareness and risk sensitivity of all its employees
through training and assessment to cultivate the risk management culture.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(a)
Risk management policies and structure
- continued
- 155 -
(ii)
Risk governance structure
The risk management structure of the Company covers five major parts: The Board and its
Compliance and Risk Management Committee, Board of Supervisors, Business Operation
Management and Risk Control Committee, Risk Management Department and various risk
management departments as well as other departments, branches and subsidiaries.
The Board of Directors takes ultimate responsibilities for the Company's comprehensive risk
management. The Compliance and Risk Management Committee is set up by the Board to
review and make recommendations on the overall risk management targets, fundamental policies;
and evaluate and make recommendations on the risks of major decisions which require the
Board's review as well as the solutions to these major risks; and review and make
recommendations on risk assessment reports which require the Board's review. The Board of
Supervisors is responsible for the supervision of overall risk management, supervising and
examining the Board and the management on the performance of their risk management duties
and urging them to make rectifications. Based on the authorisation and approval of the Board
and in combination with the operational targets of the Company, the management is specifically
responsible for the implementation of risk management activities, with the Risk Control
Committee established under it. The Chief Risk Officer of the Company is responsible for
leading the overall risk management initiatives. The Risk Management Department is charged
with comprehensive risk management duties. It reports to the management and is responsible for
managing the overall risks of the Company, taking the lead in managing market risk, credit risk
and operational risk. Relevant functional departments of the Company are responsible for taking
the lead in managing other types of risks according to their responsibilities and positioning. Other
departments, branches and subsidiaries of the Company are responsible for the management of
risks in respective lines, implementing policies, procedures and measures formulated by the
Company and risk management departments, accepting the guidance from risk management
departments and the decomposition of risk management and implementation responsibilities by
the risk management departments.
The Audit Department is responsible for conducting
independent and objective reviews and evaluations of the comprehensiveness and effectiveness
of the risk management, and is also in charge of leading or entrusting external professional
institutions to regularly assess the company's comprehensive risk management system.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
- 156 -
Credit risk management
Credit risk refers to the risk of loss of the Company resulting from the default of borrowers or
bond issuer or counterparty (customer). The Company has established a credit risk management
system covering self-owned capital and entrusted funding business. The system is applied to all
subsidiaries domestic or overseas, and also to the sub-subsidiaries managed with reference to the
subsidiary's management approach, thereby achieving full credit risk management coverage.
The Group mainly faced three types of credit risks, namely (i) the risks of suffering from loss in
respect of the financing bills and interest lent out due to borrower's default in financing business;
(ii) the risks caused by default of the issuer in bond investment business; (iii) the risks of assets
suffering from loss due to the default by the counterparty in transaction business (including
guarantee settlement business).
With respect to credit risk management of financing business, the Group implemented stringent
control measures through continuous monitoring for risky customers and risky assets and timely
risk mitigation. The Company intensified the dynamic counter-cyclical adjustment mechanism,
established a market systemic risk monitoring and handling mechanism and strengthened the
post-credit management of related businesses, in order to control routine business risks, prevent
bottom-line risks and flexibly adjust the business structure.
With respect to credit risk management of issuers, the Company established a unified monitoring
management system for issuers to realize the unified monitoring of credit bond targets for the
Company's various businesses. In the meantime, the Company deepened the credit bonds' risk
management and control in the whole process, established a screening and disposal mechanism
of normalization for risky securities, and continuously to strengthen the monitoring and early
warning mechanism of bond positions, thereby enhancing the effectiveness of the Company's
prevention and control capabilities of credit risk.
With respect to credit risk management of counterparties, the Company constantly promoted the
optimization construction of the unified management system for counterparties, and further
strengthened counterparties' credit management in accordance with internal and external public
sentiment to strictly control tail risks. For guaranteed settlement business, the Company
continued to improve the front-end control of risk indicator design and promoted the
establishment of systematic measures, as well as strengthened its risk event handling and risk
transmission control capabilities.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(b)
Credit risk management
- continued
- 157 -
The Company continued to optimize and improve its unified credit risk management system, in
order to enhance its ability to cope with the complex external credit environment and provide
strong risk control guarantee for the development of various credit businesses. During the
reporting period, the Company did not experience any major credit risk events, and its businesses
operated smoothly.
The Group provided credit loss allowances for securities-backed lendings of financial assets sold
under repurchase agreements. The Group assessed the continuous repayment, solvency and the
collateral to loan ratios of the borrowers to analyse the degree of default risk and identified the
three stages of credit loss allowances of the securities-backed lendings assets. The details are as
below:
Description | Stage of credit loss allowances | |
Collateral to loan ratios above the force liquidation thresholds, | 12-month ECL | Stage 1 |
with no past due days | ||
Collateral to loan ratios above the force liquidation thresholds, | Lifetime ECL-not | Stage 2 |
with less than 90 days past due on its contractual payments | credit impaired | |
Collateral to loan ratios below the force liquidation thresholds but | ||
above 100%, with no past due days | ||
Collateral to loan ratios below the force liquidation thresholds but | ||
above 100%, with less than 90 days past due on its contractual | ||
payments | ||
Collateral to loan ratios below 100% | Lifetime ECL- | Stage 3 |
Collateral to loan ratios above 100%, with more than 90 days past | credit impaired | |
due on its contractual payments | ||
Borrowers in default or lawsuit | ||
Borrowers in significant financial difficulties or about to | ||
bankruptcy or undertaking a financial restructuring | ||
The Group set different
force liquidation thresholds, normally no less than 130%, for different
borrowers and assets.
For assets classified under Stage 1 and Stage 2, the Group assessed credit loss allowances using
the risk parameters modeling approach that incorporated key parameters inclusive of collateral
to loan ratios and past due days. As at 31 December 2024, the average credit loss rate was 0.29%
assets classified under Stage 1 and no asset under Stage 2 (as at 31 December 2023, the average
credit loss rate was 0.35% assets classified under Stage 1 and no asset under Stage 2).
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(b)
Credit risk management
- continued
- 158 -
For credit impaired assets classified under Stage 3, the Group assessed credit loss allowances
taking into account the collateral securities under each contract and the financial situation of the
borrower. The factors which the Group considered when assessing the credit loss allowances
included but not limited to: the industry sector of the borrower, the stock price of the collateral
securities, the average daily trading volume of the stock, the percentage of goodwill of the stock
issuer, significant risk parameters of the securities, whether the borrowers are the holding
shareholders, the liquidity and restriction on sales, the history of blacklist or defaults of the
borrower, the total market pledged ratios of the stock, the collateral situation, and the credit
enhancement measures implemented by the borrower. The Group assessed the above factors as
well as collateral to loan ratios and past due days to evaluate and provide credit loss allowances,
ranging from 10% to 100%.
For margin accounts receivable, the Group classified the exposures into three stages, considering
the collateral coverage ratios as the main indicator, the concentration of positions as the
supplementary index, and taking into account the borrowers' continuous repayment, the total
balance of margin accounts, the liquidity of the collateral and other relevant information. The
Group applied corresponding loss rates for assets at different stages, and calculates the expected
credit loss accordingly.
As at 31 December 2024, the average credit loss rate was 0.52%, 8.33%
and 82.99% for assets
classified under Stage 1, 2 and 3, respectively (as at 31 December 2023, the average credit loss
rate was 0.55%, 7.53% and 58.30% for assets classified under Stage 1, 2 and 3, respectively).
For credit business, when calculating the expected credit loss, the Group identified a number of
indicators from three dimensions: macroeconomic indicators, market environment and asset
quality, taking into account forward-looking information that can be obtained without
unnecessary additional costs or efforts. By constructing the relationship between these specific
indicators and the loss rate, forward-looking adjustments were made to the expected credit loss
of credit business.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(b)
Credit risk management
- continued
- 159 -
Stage 2 | Stage 3 | |||
Stage 1 | Lifetime ECL | Lifetime ECL | ||
Margin accounts receivable | 12m ECL | (not credit impaired) | (credit impaired) | Total ECL |
As at 1 January, 2024 | 560,203 | 843,096 | 118,048 | 1,521,347 |
Changes in the expected credit losses: | ||||
— Transfer to Stage 1 | 176,032 | (175,880) | (152) | - |
— Transfer to Stage 2 | - | - | - | - |
— Transfer to Stage 3 | - | (1,067) | 1,067 | - |
— (Credit)/charged to profit or loss | (96,247) | 298,057 | 40,890 | 242,700 |
— Other | 15 | 161 | 1,401 | 1,577 |
As at 31 December 2024 | 640,003 | 964,367 | 161,254 | 1,765,624 |
Stage 2 | Stage 3 | |||
Financial assets held under | Stage 1 | Lifetime ECL | Lifetime ECL | |
resale agreements | 12m ECL | (not credit impaired) | (credit impaired) | Total ECL |
As at 1 January, 2024 | 17,974 | - | 635,152 | 653,126 |
Changes in the expected credit losses: | ||||
— Transfer to Stage 1 | - | - | - | - |
— Transfer to Stage 2 | - | - | - | - |
— Transfer to Stage 3 | - | - | - | - |
— Credit to profit or loss | (9,085) | - | (27,070) | (36,155) |
— Other | 29 | - | 2,009 | 2,038 |
As at 31 December 2024 | 8,918 | - | 610,091 | 619,009 |
Stage 2 | Stage 3 | |||
Debt instruments at fair value through | Stage 1 | Lifetime ECL | Lifetime ECL | |
other comprehensive income | 12m ECL | (not credit impaired) | (credit impaired) | Total ECL |
As at 1 January, 2024 | 39,022 | - | - | 39,022 |
Changes in the expected credit losses: | ||||
— Transfer to Stage 1 | - | - | - | - |
— Transfer to Stage 2 | - | - | - | - |
— Transfer to Stage 3 | - | - | - | - |
— Credit to profit or loss | (32,659) | - | - | (32,659) |
— Other | (199) | - | - | (199) |
As at 31 December 2024 | 6,164 | - | - | 6,164 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(b)
Credit risk management
- continued
- 160 -
(i)
Maximum exposure to credit risk
Maximum exposure to credit risk of the Group without taking account of any collateral and other
credit enhancements:
As at 31 December | ||
2024 | 2023 | |
Debt instruments at amortised cost | 47,793,722 | 50,116,812 |
Refundable deposits | 33,451,298 | 40,544,278 |
Accounts receivable | 5,587,233 | 9,743,761 |
Other receivables | 219,195 | 403,399 |
Margin accounts receivable | 132,546,005 | 112,341,094 |
Debt instruments at fair value through other comprehensive | ||
income | 10,135,553 | 16,262,000 |
Financial assets held under resale agreements | 15,228,401 | 12,460,232 |
Financial assets at fair value through profit or loss | 173,544,758 | 199,732,670 |
Derivative financial assets | 9,991,125 | 16,259,881 |
Clearing settlement funds | 11,136,757 | 9,129,266 |
Cash held on behalf of brokerage clients | 170,880,569 | 137,210,295 |
Bank balances | 39,521,272 | 46,296,177 |
Assets classified as held for sale | 10,399 | - |
Total maximum credit risk exposure | 650,046,287 | 650,499,865 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(b)
Credit risk management
- continued
(i)
Maximum exposure to credit risk - continued
- 161 -
The Group's credit risk exposure of financial instruments for which an ECL allowance is
recognised as follows according to the stage of ECL:
| As at 31 December 2024 | ||||
Lifetime ECL- | Lifetime ECL- | |||
12-month | not credit | credit | ||
Impairment and loss allowance | ECL | impaired | impaired | Total |
Bank balances | 351 | - | - | 351 |
Cash held on behalf of brokerage | ||||
clients | 15 | - | - | 15 |
Margin accounts receivable | 640,003 | 964,367 | 161,254 | 1,765,624 |
Financial assets held under resale | ||||
agreements | 8,918 | - | 610,091 | 619,009 |
Accounts receivable | - | 131,600 | 48,624 | 180,224 |
Debt instruments at amortised cost | 5,391 | - | - | 5,391 |
Debt instruments at fair value | ||||
through other comprehensive | ||||
income | 6,164 | - | - | 6,164 |
Other receivables and interest | ||||
receivable | 179 | 61,171 | 706,514 | 767,864 |
Total | 661,021 | 1,157,138 | 1,526,483 | 3,344,642 |
| As at 31 December 2023 | ||||
Lifetime ECL- | Lifetime ECL- | |||
12-month | not credit | credit | ||
Impairment and loss allowance | ECL | impaired | impaired | Total |
Bank balances | 512 | - | - | 512 |
Margin accounts receivable | 560,203 | 843,096 | 118,048 | 1,521,347 |
Financial assets held under resale | ||||
agreements | 17,974 | - | 635,152 | 653,126 |
Accounts receivable | - | 115,458 | - | 115,458 |
Debt instruments at amortised cost | 5,499 | - | - | 5,499 |
Debt instruments at fair value | ||||
through other comprehensive | ||||
income | 39,022 | - | - | 39,022 |
Other receivables and interest | ||||
receivable | 393 | 47,358 | 715,714 | 763,465 |
Total | 623,603 | 1,005,912 | 1,468,914 | 3,098,429 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(b)
Credit risk management
- continued
- 162 -
(ii)
Risk concentrations
The Group's maximum credit risk exposure without taking account of any collateral and other
credit enhancements, as categorised by geographical area:
| By geographical area | |||
Outside | |||
Mainland | Mainland | ||
China | China | Total | |
31 December 2024 | |||
Debt instruments at amortised cost | 47,557,179 | 236,543 | 47,793,722 |
Refundable deposits | 25,812,561 | 7,638,737 | 33,451,298 |
Accounts receivable | 2,984,582 | 2,602,651 | 5,587,233 |
Other receivables | 188,154 | 31,041 | 219,195 |
Margin accounts receivable | 130,578,012 | 1,967,993 | 132,546,005 |
Debt instruments at fair value through other | |||
comprehensive income | 6,692,111 | 3,443,442 | 10,135,553 |
Financial assets held under resale agreements | 9,234,426 | 5,993,975 | 15,228,401 |
Financial assets at fair value through profit or loss | 143,564,589 | 29,980,169 | 173,544,758 |
Derivative financial assets | 4,141,156 | 5,849,969 | 9,991,125 |
Clearing settlement funds | 10,505,924 | 630,833 | 11,136,757 |
Cash held on behalf of brokerage clients | 167,622,790 | 3,257,779 | 170,880,569 |
Bank balances | 23,703,274 | 15,817,998 | 39,521,272 |
Assets classified as held for sale | 10,399 | - | 10,399 |
Total maximum credit risk exposure | 572,595,157 | 77,451,130 | 650,046,287 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(b)
Credit risk management
- continued
(ii)
Risk concentrations - continued
- 163 -
| By geographical area | |||
Outside | |||
Mainland | Mainland | ||
China | China | Total | |
31 December 2023 | |||
Debt instruments at amortised cost | 49,866,999 | 249,813 | 50,116,812 |
Refundable deposits | 31,882,359 | 8,661,919 | 40,544,278 |
Accounts receivable | 5,447,675 | 4,296,086 | 9,743,761 |
Other receivables | 300,952 | 102,447 | 403,399 |
Margin accounts receivable | 109,994,638 | 2,346,456 | 112,341,094 |
Debt instruments at fair value through other | |||
comprehensive income | 12,414,774 | 3,847,226 | 16,262,000 |
Financial assets held under resale agreements | 10,787,973 | 1,672,259 | 12,460,232 |
Financial assets at fair value through profit or loss | 169,171,262 | 30,561,408 | 199,732,670 |
Derivative financial assets | 7,966,431 | 8,293,450 | 16,259,881 |
Clearing settlement funds | 6,611,930 | 2,517,336 | 9,129,266 |
Cash held on behalf of brokerage clients | 134,879,413 | 2,330,882 | 137,210,295 |
Bank balances | 29,829,183 | 16,466,994 | 46,296,177 |
Total maximum credit risk exposure | 569,153,589 | 81,346,276 | 650,499,865 |
Liquidity risk management
Liquidity risk refers to the risk of the Group not being able to obtain sufficient funds at a
reasonable cost in time to meet due debts, perform payment obligations and meet the capital
requirements of normal businesses. The Group established a fully functional liquidity risk
management system to identify, measure, monitor, control and report on its overall liquidity risk
to improve the information of liquidity risk management, enhance the capabilities in the
identification, measurement and monitoring of liquidity risk, and strengthen the Group ability in
addressing liquidity risk. In addition, the Group also established a right-sized liquidity assets
reserves based on the risk appetite and maintained sufficient liquidity assets with high quality to
ensure the satisfaction of liquidity needs under stressful scenarios in a timely manner.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(c)
Liquidity risk management
- continued
- 164 -
The following tables show the details of the remaining contractual maturities at the end of the reporting period of the Group's non-derivative financial
liabilities and derivate financial liabilities. Analysis of non-derivative financial liabilities are based on contractual undiscounted cash flows (including
interest payments computed using contractual rates or, if floating, based on rates current at the end of the reporting period) and the earliest date the
Group can be required to pay:
| As at 31 December 2024 | |||||||||
More than | More than | More than | |||||||
Overdue/ | 1 month but | 3 months but | 1 year but | ||||||
Carrying | repayable on | Less than | less than | less than | less than | More than | |||
Financial Liabilities | amount | demand | 1 month | 3 months | 1 year | 5 years | 5 years | Undated | Total |
Short-term bank loans | 3,362,980 | - | 2,273,870 | 1,087,069 | 12,635 | - | - | - | 3,373,574 |
Short-term debt instruments issued | 28,852,939 | - | 3,197,084 | 5,425,790 | 20,714,438 | - | - | - | 29,337,312 |
Placements from other financial | |||||||||
institutions | 30,113,661 | - | 28,301,738 | 1,248,620 | 589,441 | - | - | - | 30,139,799 |
Accounts payable to brokerage clients | 184,586,976 | 184,586,976 | - | - | - | - | - | - | 184,586,976 |
Other payables and accruals | 74,656,220 | 72,385,981 | 1,208,179 | 100,843 | 322,785 | 695,835 | 39,217 | - | 74,752,840 |
Financial assets sold under repurchase | |||||||||
agreements | 121,048,168 | - | 104,293,812 | 6,957,041 | 8,861,069 | 1,185,205 | - | - | 121,297,127 |
Derivative financial liabilities | 10,943,785 | - | 5,216,144 | 2,879,429 | 1,891,877 | 956,016 | 319 | - | 10,943,785 |
Financial liabilities at fair value through | |||||||||
profit or loss | 40,448,332 | 14,000,834 | 1,596,739 | 1,872,196 | 6,987,017 | 19,736,089 | 1,665,071 | - | 45,857,946 |
Liabilities associated with assets | |||||||||
classified as held for sale | 13,328 | 8,809 | - | 659 | 1,995 | 2,003 | - | - | 13,466 |
Long-term bonds | 115,458,817 | - | 5,415,400 | 12,933,454 | 28,488,659 | 60,862,797 | 11,717,160 | - | 119,417,470 |
Long-term bank loans | - | - | - | - | - | - | - | - | - |
Total | 609,485,206 | 270,982,600 | 151,502,966 | 32,505,101 | 67,869,916 | 83,437,945 | 13,421,767 | - | 619,720,295 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(c)
Liquidity risk management
- continued
- 165 -
| As at 31 December 2023 | |||||||||
More than | More than | More than | |||||||
Overdue/ | 1 month but | 3 months but | 1 year but | ||||||
Carrying | repayable on | Less than | less than | less than | less than | More than | |||
Financial Liabilities | amount | demand | 1 month | 3 months | 1 year | 5 years | 5 years | Undated | Total |
Short-term bank loans | 11,478,573 | - | 7,490,289 | 4,018,259 | 7,226 | - | - | - | 11,515,774 |
Short-term debt instruments issued | 25,475,507 | - | 3,374,114 | 8,108,499 | 14,717,440 | - | - | - | 26,200,053 |
Placements from other financial | |||||||||
institutions | 39,536,527 | - | 34,236,630 | 2,559,335 | 2,788,710 | - | - | - | 39,584,675 |
Accounts payable to brokerage clients | 144,701,360 | 144,701,360 | - | - | - | - | - | - | 144,701,360 |
Other payables and accruals | 113,825,742 | 110,539,646 | 1,635,576 | 102,104 | 429,774 | 1,164,412 | 85,632 | - | 113,957,144 |
Financial assets sold under repurchase | |||||||||
agreements | 144,056,149 | - | 126,317,070 | 13,977,152 | 3,486,110 | 2,646,542 | - | - | 146,426,874 |
Derivative financial liabilities | 16,881,641 | - | 9,493,502 | 5,738,758 | 1,300,092 | 335,246 | 14,043 | - | 16,881,641 |
Financial liabilities at fair value through | |||||||||
profit or loss | 52,671,166 | 18,167,058 | 3,274,374 | 2,928,070 | 9,537,915 | 16,652,468 | 2,495,190 | - | 53,055,075 |
Long-term bonds | 159,816,001 | - | 4,920,750 | 1,085,281 | 43,152,379 | 105,349,249 | 11,717,160 | - | 166,224,819 |
Long-term bank loans | 647,052 | - | - | 10,640 | 31,919 | 733,686 | - | - | 776,245 |
Total | 709,089,718 | 273,408,064 | 190,742,305 | 38,528,098 | 75,451,565 | 126,881,603 | 14,312,025 | - | 719,323,660 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
- 166 -
Market risk management
Market risk refers to the risk of asset loss for the Company due to fluctuations in risk factors
such as stock prices, interest rates, exchange rates, and commodities. The objective of market
risk management is to manage and control the market risk within the acceptable range and to
maximise the risk adjusted return.
(i)
Interest rate risk
Interest rate risk refers to the risk that movements in market interest rate will cause fluctuation
in the Group's consolidated financial position and cash flow. The Group's interest-bearing assets
mainly include bank balances, clearing settlement funds, margin accounts receivable, financial
assets purchased under resale agreements, refundable deposits and bond investments; interest-
bearing liabilities mainly include short-term bank loans, short-term debt instruments issued,
placements from other financial institutions, financial assets sold under repurchase agreements,
accounts payable to brokerage clients, long-term bonds and long-term bank loans, amongst
others.
For financial instruments held on the reporting date that expose the Group to fair value interest
rate risk, the Group adopts sensitivity analysis as the primary instrument for monitoring interest
rate risk. Sensitivity analysis measures the effect of any reasonable and potential changes to the
interest rate on the net profits and shareholders' equity under the assumption that all the other
variables remain constant.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(d)
Market risk management
- continued
(i)
Interest rate risk - continued
- 167 -
The following tables indicate the assets and liabilities as at the end of the reporting period by the expected next repricing dates or by maturity dates,
depending on which is earlier:
| As at 31 December 2024 | |||||||
More than 1 | More than 3 | More than | |||||
Less than | month but less | months but less | 1 year but | More than | Non-interest | ||
Financial assets | 1 month | than 3 months | than 1 year | less than 5 years | 5 years | bearing | Total |
Unlisted investment in a joint venture at fair value | |||||||
through profit or loss | - | - | - | - | - | 208,769 | 208,769 |
Debt instruments at amortised cost | 269,990 | 410,455 | 6,167,119 | 11,747,158 | 28,694,296 | 504,704 | 47,793,722 |
Debt instruments at fair value through other | |||||||
comprehensive income | 624,414 | 866,111 | 5,213,898 | 211,894 | 3,120,396 | 98,840 | 10,135,553 |
Equity instruments at fair value through other | |||||||
comprehensive income | - | - | - | - | - | 125,860 | 125,860 |
Assets classified as held for sale | 10,399 | - | - | - | - | 318,042 | 328,441 |
Financial assets held under resale agreements | 11,559,192 | 292,219 | 3,037,614 | 333,951 | - | 5,425 | 15,228,401 |
Refundable deposits | 2,601,703 | - | - | - | - | 30,849,596 | 33,451,299 |
Accounts receivable | - | - | - | - | - | 5,587,233 | 5,587,233 |
Other receivables | - | - | - | - | - | 219,195 | 219,195 |
Margin accounts receivable | 5,052,293 | 13,443,692 | 110,672,925 | 5,543 | 25,854 | 3,345,698 | 132,546,005 |
Financial assets at fair value through profit or loss | 4,963,918 | 8,073,497 | 43,536,438 | 56,636,854 | 58,353,969 | 129,973,081 | 301,537,757 |
Derivative financial assets | 608,203 | - | - | - | - | 9,382,922 | 9,991,125 |
Clearing settlement funds | 11,136,757 | - | - | - | - | - | 11,136,757 |
Cash held on behalf of brokerage clients | 170,669,083 | - | 46,285 | - | - | 165,201 | 170,880,569 |
Cash and bank balances | 31,727,490 | 5,601,238 | 2,086,303 | - | - | 106,427 | 39,521,458 |
Total | 239,223,442 | 28,687,212 | 170,760,582 | 68,935,400 | 90,194,515 | 180,890,993 | 778,692,144 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(d)
Market risk management
- continued
(i)
Interest rate risk - continued
- 168 -
| As at 31 December 2024 | |||||||
More than 1 | More than 3 | More than | |||||
Less than | month but less | months but less | 1 year but | More than | Non-interest | ||
Financial liabilities | 1 month | than 3 months | than 1 year | less than 5 years | 5 years | bearing | Total |
Short-term bank loans | (2,264,814) | (1,078,575) | (12,428) | - | - | (7,163) | (3,362,980) |
Short-term debt instruments issued | (3,131,010) | (5,316,000) | (20,327,750) | - | - | (78,179) | (28,852,939) |
Placements from other financial institutions | (28,282,608) | (1,236,405) | (575,071) | - | - | (19,577) | (30,113,661) |
Accounts payable to brokerage clients | (184,583,358) | - | - | - | - | (3,618) | (184,586,976) |
Other payables and accruals | (22,999) | (98,381) | (311,290) | (548,288) | (33,657) | (73,641,605) | (74,656,220) |
Financial assets sold under repurchase agreements | (104,041,516) | (6,836,593) | (8,752,065) | (1,176,069) | - | (241,925) | (121,048,168) |
Derivative financial liabilities | (760,937) | - | - | - | - | (10,182,848) | (10,943,785) |
Financial liabilities at fair value through profit or loss | (12,197,346) | (1,872,196) | (6,780,054) | (14,533,439) | (154,610) | (4,910,687) | (40,448,332) |
Liabilities associated with assets classified as | |||||||
held for sale | (8,809) | (626) | (1,920) | (1,973) | - | - | (13,328) |
Long-term bonds | (4,800,000) | (12,188,400) | (26,225,000) | (58,950,280) | (11,300,000) | (1,995,137) | (115,458,817) |
Long-term bank loans | - | - | - | - | - | - | - |
Total | (340,093,397) | (28,627,176) | (62,985,578) | (75,210,049) | (11,488,267) | (91,080,739) | (609,485,206) |
Net interest rate risk exposure | (100,869,955) | 60,036 | 107,775,004 | (6,274,649) | 78,706,248 | 89,810,254 | 169,206,938 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(d)
Market risk management
- continued
(i)
Interest rate risk - continued
- 169 -
| As at 31 December 2023 | |||||||
More than 1 | More than 3 | More than | |||||
Less than | month but less | months but less | 1 year but | More than | Non-interest | ||
Financial assets | 1 month | than 3 months | than 1 year | less than 5 years | 5 years | bearing | Total |
Unlisted investment in a joint venture at fair value | |||||||
through profit or loss | - | - | - | - | - | 380,612 | 380,612 |
Debt instruments at amortised cost | 19,997 | 330,129 | 4,272,515 | 17,004,533 | 27,915,484 | 574,154 | 50,116,812 |
Debt instruments at fair value through other | |||||||
comprehensive income | 66,381 | 276,085 | 704,011 | 12,434,424 | 2,546,873 | 234,226 | 16,262,000 |
Equity instruments at fair value through other | |||||||
comprehensive income | - | - | - | - | - | 124,506 | 124,506 |
Financial assets held under resale agreements | 7,678,941 | 914,662 | 3,716,892 | 128,762 | - | 20,975 | 12,460,232 |
Refundable deposits | 2,726,297 | - | - | - | - | 37,817,981 | 40,544,278 |
Accounts receivable | - | - | - | - | - | 9,743,761 | 9,743,761 |
Other receivables | - | - | - | - | - | 403,399 | 403,399 |
Margin accounts receivable | 34,688,633 | 19,190,616 | 53,851,817 | - | - | 4,610,028 | 112,341,094 |
Financial assets at fair value through profit or loss | 8,006,000 | 11,967,448 | 58,371,182 | 67,122,640 | 49,493,564 | 218,118,550 | 413,079,384 |
Derivative financial assets | 945,881 | - | - | - | - | 15,314,000 | 16,259,881 |
Clearing settlement funds | 9,129,266 | - | - | - | - | - | 9,129,266 |
Cash held on behalf of brokerage clients | 137,161,030 | - | - | - | - | 49,265 | 137,210,295 |
Cash and bank balances | 41,190,662 | 1,853,683 | 3,158,240 | - | - | 93,781 | 46,296,366 |
Total | 241,613,088 | 34,532,623 | 124,074,657 | 96,690,359 | 79,955,921 | 287,485,238 | 864,351,886 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(d)
Market risk management
- continued
(i)
Interest rate risk - continued
- 170 -
As at 31 December 2023 | |||||||
More than 1 | More than 3 | More than | |||||
Less than | month but less | months but less | 1 year but | More than | Non-interest | ||
Financial liabilities | 1 month | than 3 months | than 1 year | less than 5 years | 5 years | bearing | Total |
Short-term bank loans | (7,406,019) | (3,964,154) | (7,087) | - | - | (101,313) | (11,478,573) |
Short-term debt instruments issued | (3,311,150) | (7,811,521) | (14,263,031) | - | - | (89,805) | (25,475,507) |
Placements from other financial institutions | (34,219,619) | (2,549,218) | (2,740,314) | - | - | (27,376) | (39,536,527) |
Accounts payable to brokerage clients | (144,695,879) | - | - | - | - | (5,481) | (144,701,360) |
Other payables and accruals | (41,872) | (96,955) | (402,053) | (855,249) | (72,031) | (112,357,582) | (113,825,742) |
Financial assets sold under repurchase agreements | (123,923,219) | (13,897,025) | (3,373,685) | (2,441,046) | - | (421,174) | (144,056,149) |
Derivative financial liabilities | (89,473) | - | - | - | - | (16,792,168) | (16,881,641) |
Financial liabilities at fair value through profit or loss | (17,750,530) | (2,928,070) | (9,333,168) | (16,473,306) | - | (6,186,092) | (52,671,166) |
Long-term bonds | (4,158,100) | (342,743) | (39,774,430) | (101,878,290) | (11,300,000) | (2,362,438) | (159,816,001) |
Long-term bank loans | - | - | - | (647,052) | - | - | (647,052) |
Total | (335,595,861) | (31,589,686) | (69,893,768) | (122,294,943) | (11,372,031) | (138,343,429) | (709,089,718) |
Net interest rate risk exposure | (93,982,773) | 2,942,937 | 54,180,889 | (25,604,584) | 68,583,890 | 149,141,809 | 155,262,168 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(d)
Market risk management
- continued
(i)
Interest rate risk - continued
- 171 -
For those financial instruments held by the Group which expose the Group to fair value interest
rate risk at the end of the reporting period, the Group adopts sensitivity analysis to measure the
potential effect of changes in interest rates on the Group's net profit and equity. Assuming all
other variables remain constant and without taking into consideration of the management's
activities to reduce interest rate risk, interest rate sensitivity analysis is as follows:
Sensitivity of net profit | ||
As at 31 December | ||
Move in yield curve | 2024 | 2023 |
Up 100 basis points | (4,343,453) | (3,983,526) |
Down 100 basis points | 4,990,742 | 4,623,149 |
Sensitivity of net equity | ||
As at 31 December | ||
Move in yield curve | 2024 | 2023 |
Up 100 basis points | (4,409,516) | (4,147,742) |
Down 100 basis points | 5,058,907 | 4,792,250 |
The sensitivity analysis above indicates the instantaneous change in the Group's net profit and
equity that would arise assuming that the change in interest rates had occurred at the end of the
reporting period and had been applied to re-measure those financial instruments held by the
Group which expose the Group to fair value interest rate risk at the end of the reporting period.
In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative
instruments held by the Group at the end of the reporting period, the impact on the Group's net
profit and equity is estimated as an annualised impact on interest expense or income of such a
change in interest rates.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(d)
Market risk management
- continued
- 172 -
(ii)
Currency risk
Currency risk is the risk arising from foreign exchange business of the Group, which is
attributable to the fluctuation of foreign exchange rates. Apart from the assets and liabilities held
by the Group's overseas subsidiaries which use Hong Kong dollars or U.S. dollars as their
functional currency, other assets and liabilities denominated in foreign currencies mainly
represent foreign currency cash and bank balances held by domestic enterprises, foreign currency
financial assets and liabilities arising from cross-border business, as well as foreign currency
financial assets acquired by subsidiaries. In respect of assets and liabilities denominated in
foreign currencies such as cash and bank balances, clearing settlement funds, refundable
deposits, accounts receivable, cash held on behalf of brokerage clients, accounts payable and
long-term bonds that are not accounted for with their functional currency, the Group has ensured
that their net risk exposure are maintained at an acceptable level by buying or selling foreign
currencies at market exchange rates where necessary to address the short-term imbalances.
Assuming all other risk variables remained constant and without consideration of risk
management measures undertaken by the Group, a 10% strengthening of the RMB against USD
and HKD at the reporting date would have increased / (decreased) the Group's equity and net
profit by the amount shown below, whose effect is in RMB and translated using the spot rate at
the reporting date:
Sensitivity of net profit | ||
As at 31 December | ||
Currency | 2024 | 2023 |
USD | (222,714) | (723,668) |
HKD | (340,754) | (1,591,456) |
Sensitivity of net equity | ||
As at 31 December | ||
Currency | 2024 | 2023 |
USD | (222,714) | (723,668) |
HKD | (2,376,794) | (3,276,332) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(d)
Market risk management
- continued
(ii)
Currency risk - continued
- 173 -
A 10% weakening of the RMB against the USD and HKD at balance date would have had the
equal but opposite effect on them to the amounts shown above, on the basis that all other
variables remained constant.
Due to the above assumptions, the result of sensitivity analysis on exchange rate changes may
be different, compared with the actual changes in the Group's net profit and equity of may arise
with this.
(iii)
Price risks
The Group is exposed to equity price changes arising from equity investments concluded in
financial instruments at fair value through profit or loss and financial assets at fair value through
other comprehensive income. Price risk the Group facing is mainly the proportionate fluctuation
in the Group's net profits due to the price fluctuation of the financial instruments at fair value
through profit or loss and the proportionate fluctuation in the Group's equity due to the price
fluctuation of the financial instruments measured at fair value.
Sensitivity analysis
The analysis below is performed to show the impact on Group's net profit and equity due to
change in the prices of equity securities by 10% with all other variables held constant.
Sensitivity of net profit | ||
As at 31 December | ||
2024 | 2023 | |
Increase by 10% | 5,421,007 | 7,169,444 |
Decrease by 10% | (5,421,007) | (7,169,444) |
Sensitivity of net equity | ||
As at 31 December | ||
2024 | 2023 | |
Increase by 10% | 5,430,614 | 7,178,930 |
Decrease by 10% | (5,430,614) | (7,178,930) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(d)
Market risk management
- continued
(iii)
Price risks - continued
- 174 -
The sensitivity analysis indicates the instantaneous change in the Group's net profit and equity
that would arise assuming that the changes in the stock market index or other relevant risk
variables had occurred at the end of the reporting period and had been applied to re-measure
those financial instruments held by the Group which expose the Group to equity price risk at the
end of the reporting period. It is also assumed that the fair values of the Group's equity
investments would change in accordance with the historical correlation with the relevant stock
market index or the relevant risk variables, and that all other variables remain constant. The
(e)
Operational risk management
Operational risk refers to the risk on the Company's losses caused by inadequate or problematic
internal procedures, staff, system or external events, which lead to inefficient internal procedures,
mistakes of staff in operation or failure to strictly enforce the established procedures. The Risk
Management Department takes the lead in managing the operational risk of the Group. Each
department, business department and subsidiary actively perform the operational risk
management in their respective lines and are responsible for the management effect, and bear
the first responsibility. The Company adopts technological measures to prevent the emergence
of operational risks in different business and management procedures as well as key segments,
whilst at the same time strengthens process controls, to ensure effective implementation of
operational risk management policies and systems. The Group carries out self-assessment of risk
and control, monitoring of key risk indicators and gathering of loss data as additional approaches
to strengthen the management of operational risks.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(e)
Operational risk management
- continued
- 175 -
Based on the Basic Standard for Enterprise Internal Control jointly issued by the Ministry of
Finance, the CSRC, the National Audit Office and the Former China Banking and Insurance
Regulatory Commission as well as its supporting guidelines and the relevant requirements of the
regulatory authorities and the Company, the Group has developed the risk-based internal control
standards and carried out relevant continuous improvement initiatives.
It has combined the self-
assessment of operational risk with the self-assessment of internal controls; comprehensively
sorted out and evaluated the inherent risks and control activities in various business processes;
tested the effectiveness of control design and implementation; rectified the internal control
weaknesses; comprehensively sorted out and optimised various business segments, systems and
processes of the Group in order to ensure that the Group internal control measures are properly
in place and the effectiveness of risk management. In addition, the Group has also integrated the
management of operational risk and internal controls into daily operation; participated in the
design of system, procedures and plan for new business throughout the entire process; fully
identified and comprehensively evaluated the operational risks; and performed various pre-,
middle- and post management measures such as setting up front-end controls, standardising
business processes, creating risk-discovery indicators and conducting training and inspection in
order to implement internal controls at key risk points.
Capital management
The Group's objectives of capital management are:
(i)
To safeguard the Group's ability to continue as a going concern so that they can continue
to provide returns for shareholders and benefits for other stakeholders;
(ii)
To support the Group's stability and growth;
(iii)
To maintain a strong capital base to support the development of their business; and
(iv)
To comply with the capital requirements under the PRC, Hong Kong and the United
States regulations.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(f)
Capital management
- continued
- 176 -
On 23 January 2020 and 16 June 2020, the revised Rules on Standards for the Calculation of
Risk Control Indicators of Securities Companies and the revised Administrative Measures for
Risk Control Indicators of Securities Companies were issued by the CSRC ("Revised
Administrative Measures"). The Company is required to meet the following standards for risk
control indicators on a continual basis from 1 June 2020:
(i)
The ratio of net capital divided by the sum of its various risk capital provisions shall be
no less than 100%;
(ii)
The ratio of net capital divided by net assets shall be no less than 20%;
(iii)
The ratio of net capital divided by liabilities shall be no less than 8%;
(iv)
The ratio of net assets divided by liabilities shall be no less than 10%;
(v)
The ratio of the value of equity securities and derivatives held divided by net capital shall
not exceed 100%;
(vi)
The ratio of the value of non-equity securities and derivatives held divided by net capital
shall not exceed 500%;
(vii)
The ratio of core net capital divided by on balance sheet and off balance sheet assets shall
be no less than 8%;
(viii)
The ratio of high quality liquidity assets divided by net cash outflows for the next 30 days
shall be no less than 100%;
(ix)
The ratio of available stable funds divided by required stable funds shall be no less than
100%; and
(x)
The ratio of margin financing (including securities lending) divided by net capital shall
not exceed 400%.
Net capital refers to net assets minus risk adjustments on certain types of assets as defined in the
Administrative Measures.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(f)
Capital management
- continued
- 177 -
As at 31 December 2024 and 31 December 2023, the Company maintained net capital and the
above ratios as follows:
Year ended 31 December | ||
2024 | 2023 | |
Net Capital | 94,142,061 | 94,076,764 |
The ratio of net capital divided by the sum of its various | ||
risk capital provisions | 362.37% | 247.80% |
The ratio of net capital divided by net assets | 58.51% | 60.67% |
The ratio of net capital divided by liabilities | 27.25% | 22.15% |
The ratio of net assets divided by liabilities | 46.57% | 36.51% |
The ratio of the value of equity securities and derivatives | ||
held divided by net capital | 26.98% | 28.58% |
The ratio of the value of non-equity securities and | ||
derivatives held divided by net capital | 254.96% | 366.74% |
The ratio of core net capital divided by on balance sheet | ||
and off balance sheet assets | 18.05% | 13.98% |
The ratio of high quality liquidity assets divided by net | ||
cash outflows for the next 30 days | 221.41% | 152.51% |
The ratio of available stable funds divided by required | ||
stable funds | 150.36% | 130.84% |
The ratio of margin financing (including securities | ||
lending) divided by net capital | 142.72% | 139.45% |
Similar to the Company, certain subsidiaries of the Group are also subject to capital requirements
under the Mainland China, Hong Kong and the United States regulatory requirements,
respectively. These subsidiaries comply with the capital requirements during the year ended 31
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
- 178 -
(g)
Transfer of financial assets
The Group transferred financial assets to certain counterparties through repurchase agreements
and securities lending. These securities are not derecognised from the consolidated statement of
financial position because the Group retains substantially all the risks and rewards of these
securities.
The Group entered into repurchase agreements with certain counterparties to sell debt securities
classified as financial assets at fair value through profit or loss and debt instruments at amortised
cost. Sales and repurchase agreements are transactions in which the Group sell a security, and
agree to repurchase it at the agreed date and price. The repurchase prices are fixed and the Group
is still exposed to substantially all the credit risks, market risks and rewards of those securities
sold. These securities are not derecognised from the consolidated statement of financial position
because the Group retains substantially all the risks and rewards of these financial assets.
The Group entered into securities lending agreements with clients to lend out its equity securities
and exchange-traded funds classified as financial assets at fair value through profit or loss. As
stipulated in the securities lending agreements, the legal ownership of these equity securities and
exchange-traded funds is transferred to the clients. Although the clients are allowed to sell these
securities during the covered period, they have obligations to return these securities to the Group
at specified future dates. The Group has determined that it retains substantially all the risks and
interests of these securities and therefore has not derecognised these securities in the
consolidated statement of financial position.
The following tables provide a summary of carrying amounts and fair values of the transferred
financial assets that are not derecognised in their entirety and the associated liabilities:
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
61.
Financial instruments and risk management
- continued
(g)
Transfer of financial assets
- continued
- 179 -
As at 31 December 2024
Financial assets at fair value through profit or loss | |||
Sales and | |||
repurchase | |||
agreements | Securities lending | Total | |
Carrying amount of transferred assets | 7,136,485 | 1,274,563 | 8,411,048 |
Carrying amount of associated | |||
liabilities | (6,065,887) | - | (6,065,887) |
Net position | 1,070,598 | 1,274,563 | 2,345,161 |
As at 31 December 2023
Financial assets at fair value through profit or loss | |||
Sales and | |||
repurchase | |||
agreements | Securities lending | Total | |
Carrying amount of transferred assets | 1,848,651 | 1,791,118 | 3,639,769 |
Carrying amount of associated | |||
liabilities | (1,733,189) | - | (1,733,189) |
Net position | 115,462 | 1,791,118 | 1,906,580 |
Fair value information
(a)
Fair value of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participations at the measurement date.
(i)
Financial instruments in Level I
The fair value of financial instruments traded in active markets is based on quoted market prices
at the date of the statement of financial position. A market is regarded as active if quoted prices
are readily and regularly available from an exchange, dealer, broker and those prices represent
actual and regularly occurring market transactions on an arm's length basis. The quoted market
price used for financial assets held by the Group is the closing price within bid-ask spread. These
instruments are included in Level I.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
62.
Fair value information
- continued
(a)
Fair value of financial instruments
- continued
- 180 -
(ii)
Financial instruments in Level II
The fair value of financial instruments that are not traded in an active market is determined by
using valuation techniques. These valuation techniques maximise the use of observable market
data where it is available and rely as little as possible on entity specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in Level II.
(iii)
Financial instruments in Level III
If one or more of the significant inputs is not based on observable market data, the instrument is
included in Level III.
(b)
Fair value of other financial instruments (carried at other than fair value)
The fair value of financial assets and financial liabilities not measured at fair value on a recurring
basis is estimated by the active market quotation or determined in accordance with discounted
cash flow method.
The main parameters used in discounted cash flow method for financial instruments held by the
Group that are not measured at fair value on a recurring basis include bond interest rates, foreign
exchange rates and counterparty credit spreads.
The carrying amount and fair value of debt instruments at amortised cost investments, short-term
debt instruments issued and long-term bonds which are not presented at fair value are listed as
below:
Carrying amount
As at 31 December | ||
2024 | 2023 | |
Financial assets | ||
- Debt instruments at amortised cost | 47,793,722 | 50,116,812 |
Total | 47,793,722 | 50,116,812 |
Financial liabilities | ||
- Short-term debt instruments issued | (28,852,939) | (25,475,507) |
- Long-term bonds | (115,458,817) | (159,816,001) |
Total | (144,311,756) | (185,291,508) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
62.
Fair value information
- continued
(b)
Fair value of other financial instruments (carried at other than fair value)
- continued
- 181 -
Fair value
| As at 31 December 2024 | ||||
Level I | Level II | Level III | Total | |
Financial assets | ||||
- Debt instruments at amortised cost | - | 51,458,276 | - | 51,458,276 |
Total | - | 51,458,276 | - | 51,458,276 |
Financial liabilities | ||||
- Short-term debt instruments issued | - | 16,841,267 | 12,022,923 | 28,864,190 |
- Long-term bonds | - | 92,483,912 | 25,836,552 | 118,320,464 |
Total | - | 109,325,179 | 37,859,475 | 147,184,654 |
| As at 31 December 2023 | ||||
Level I | Level II | Level III | Total | |
Financial assets | ||||
- Debt instruments at amortised cost | - | 51,189,494 | - | 51,189,494 |
Total | - | 51,189,494 | - | 51,189,494 |
Financial liabilities | ||||
- Short-term debt instruments issued | - | 14,047,389 | 11,444,324 | 25,491,713 |
- Long-term bonds | - | 129,176,100 | 32,302,564 | 161,478,664 |
Total | - | 143,223,489 | 43,746,888 | 186,970,377 |
The fair value of the financial assets and financial liabilities included in the level II and III
categories above have been determined in accordance with generally accepted pricing models
based on a discounted cash flow analysis, with the most significant inputs being the discount rate
that reflects the credit risk of counterparties.
Except for the above, the directors of the Company consider that the carrying amounts of
financial assets and financial liabilities recorded in the Group's consolidated statement of
financial position approximate their fair value.
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
62.
Fair value information
- continued
- 182 -
(c)
Fair value of financial instruments carried at fair value
The table below analyses financial instruments, measured at fair value at the end of the reporting
period, by the level in the fair value hierarchy into which the fair value measurement is
categorised. It does not include fair value information for financial assets and financial liabilities
not measured at fair value if the carrying amount is a reasonable approximation of fair value.
| As at 31 December 2024 | ||||
Level I | Level II | Level III | Total | |
Assets | ||||
Financial assets at fair value through | ||||
profit or loss | ||||
- Debt securities | 446,496 | 170,876,044 | 242,137 | 171,564,677 |
- Equity securities | 55,932,255 | - | 4,954,385 | 60,886,640 |
- Mutual funds | 56,680,115 | 4,138,639 | 257,505 | 61,076,259 |
- Private funds | - | 3,548,646 | - | 3,548,646 |
- Wealth management products | - | 3,280,955 | 475,063 | 3,756,018 |
- Other debt instruments | - | - | 705,518 | 705,518 |
Debt instruments at fair value through | ||||
other comprehensive income | - | 10,135,553 | - | 10,135,553 |
Equity instruments at fair value | ||||
through other comprehensive | ||||
income | - | 21,109 | 104,751 | 125,860 |
Other investment | ||||
- Unlisted investment in a joint | ||||
venture | - | - | 208,769 | 208,769 |
Derivative financial assets | 350,714 | 7,349,069 | 2,291,342 | 9,991,125 |
Total | 113,409,580 | 199,350,015 | 9,239,470 | 321,999,065 |
Liabilities | ||||
Financial liabilities at fair value | ||||
through profit or loss | ||||
- Financial liabilities held for trading | (1,165,039) | (25,420,561) | - | (26,585,600) |
- Financial liabilities designated at | ||||
fair value through profit or loss | - | (5,062,579) | (8,800,154) | (13,862,733) |
Derivative financial liabilities | (376,897) | (8,735,144) | (1,831,744) | (10,943,785) |
Total | (1,541,936) | (39,218,284) | (10,631,898) | (51,392,118) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
62.
Fair value information
- continued
(c)
Fair value of financial instruments carried at fair value
- continued
- 183 -
| As at 31 December 2023 | ||||
Level I | Level II | Level III | Total | |
Assets | ||||
Financial assets at fair value through | ||||
profit or loss | ||||
- Debt securities | 1,247,948 | 193,929,712 | 586,617 | 195,764,277 |
- Equity securities | 114,529,748 | 8,985 | 15,068,652 | 129,607,385 |
- Mutual funds | 59,389,427 | 2,199,859 | 178,042 | 61,767,328 |
- Private funds | - | 22,344,489 | - | 22,344,489 |
- Wealth management products | - | 1,418,630 | - | 1,418,630 |
- Other debt instruments | - | - | 2,177,275 | 2,177,275 |
Debt instruments at fair value through | ||||
other comprehensive income | - | 16,081,537 | 180,463 | 16,262,000 |
Equity instruments at fair value | ||||
through other comprehensive | ||||
income | - | 18,849 | 105,657 | 124,506 |
Other investment | ||||
- Unlisted investment in a joint | ||||
venture | - | - | 380,612 | 380,612 |
Derivative financial assets | 197,373 | 10,353,460 | 5,709,048 | 16,259,881 |
Total | 175,364,496 | 246,355,521 | 24,386,366 | 446,106,383 |
Liabilities | ||||
Financial liabilities at fair value | ||||
through profit or loss | ||||
- Financial liabilities held for trading | (1,457,566) | (34,474,571) | - | (35,932,137) |
- Financial liabilities designated at | ||||
fair value through profit or loss | (828,545) | (5,031,459) | (10,879,025) | (16,739,029) |
Derivative financial liabilities | (247,954) | (13,176,576) | (3,457,111) | (16,881,641) |
Total | (2,534,065) | (52,682,606) | (14,336,136) | (69,552,807) |
For the year ended 31 December 2024, there were no financial instruments transfer from Level
II to Level I (for the year ended 31 December 2023: Nil).
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
62.
Fair value information
- continued
(c)
Fair value of financial instruments carried at fair value
- continued
- 184 -
(i)
Valuation methods for financial instruments in Level II
Financial assets | Fair value | |
and liabilities | hierarchy | Valuation technique(s) and key input(s) |
Debt securities at fair value | Level II | Future cash flows estimated based on contractual amounts |
through profit or loss | discounted at a rate that reflects the credit risk of the | |
bonds. | ||
Equity securities at fair value | Level II | Recent transaction prices. |
through profit or loss | ||
Funds at fair value through | Level II | Net asset value as published by the fund managers. |
profit or loss | ||
Wealth management products | Level II | Net asset value as published by the managers of products. |
at fair value through profit | ||
or loss | ||
Debt instruments at fair value | Level II | Future cash flows estimated based on contractual amounts |
through other | discounted at a rate that reflects the credit risk of the | |
comprehensive income | bonds. | |
Equity instruments at fair | Level II | Recent transaction prices. |
value through other | ||
comprehensive income | ||
Derivative financial assets/ | Level II | Future cash flows estimated based on forward exchange |
derivative financial | rates (from observable forward exchange rates at the end | |
liabilities | of the reporting period) and contract forward rates, | |
discounted at a rate that reflects the credit risk of various | ||
counterparties; or calculated based on the difference | ||
between the equity return of underlying equity securities | ||
and the fixed income agreed in the swap agreements. | ||
Financial liabilities held for | Level II | Future cash flows estimated based on contractual amounts |
trading | discounted at a rate that reflects the credit risk of the | |
debt instruments. | ||
Financial liabilities | Level II | Calculated based on the fair value of the underlying |
designated at fair value | investments which are debt securities and publicly | |
through profit or loss | traded equity investments in each portfolio. |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
62.
Fair value information
- continued
(c)
Fair value of financial instruments carried at fair value
- continued
- 185 -
(ii)
Valuation methods for Financial instruments in Level III
Significant | Relationship of | |||
Financial assets | Fair value | Valuation | unobservable | unobservable |
and liabilities | hierarchy | technique(s) | input(s) | input(s) to fair value |
Other debt instruments and | Level III | Discounted cash flow | Risk adjusted discount rate | The higher the risk adjusted |
debt securities at fair value | model | and expected cash flow. | discount rate, the lower the | |
through profit or loss | fair value; the higher the | |||
expected cash flow, the higher | ||||
the fair value. | ||||
Unlisted equity securities at | Level III | Market approach, with | Indicators such as P/E and | The higher the discount, |
fair value through profit or | an adjustment or | P/B multiples of | the lower the fair value; the | |
loss | discount for lack of | comparable listed | higher the valuation | |
marketability | companies, and liquidity | multiples, the higher the fair | ||
discount rate. | value. | |||
Funds at fair value | Level III | Black-Scholes option | Indicators such as price | The higher the price volatility, |
through profit or loss | pricing model | volatility of comparable | the higher the discount rate; | |
funds, and discount rate. | the higher the discount rate, | |||
the lower the fair value. | ||||
Debt instruments at fair | Level III | Discounted cash flow | Risk adjusted discount rate | The higher the risk adjusted |
value through other | model | and expected cash flow. | discount rate, the lower the | |
comprehensive income | fair value; the higher the | |||
expected cash flow, the higher | ||||
the fair value. | ||||
Equity instruments at fair | Level III | Market approach, with | Indicators such as P/E and | The higher the discount, the |
value through other | an adjustment or | P/B multiples of | lower the fair value; the | |
comprehensive income | discount for lack of | comparable listed | higher the valuation | |
marketability | companies, and liquidity | multiples, the | ||
discount rate. | higher the fair value. | |||
Unlisted investment in a | Level III | Discounted cash flow | Risk adjusted discount rate | The higher the risk adjusted |
joint venture | model | and expected cash flow. | discount rate, the lower the | |
fair value; the higher the | ||||
expected cash flow, the higher | ||||
the fair value. | ||||
Derivative financial assets/ | Level III | Black-Scholes option | Price volatility of underlying | The higher the price volatility, |
derivative financial | pricing model | assets. | the greater the impact on the | |
liabilities | /Monte-Carlo option | fair value. | ||
pricing model | ||||
Financial liabilities | Level III | Market approach, with | Indicators such as P/E and | The higher the discount, |
designated at fair value | an adjustment or | P/B multiples of | the lower the fair value; the | |
through profit or loss | discount for lack of | comparable listed | higher the valuation | |
marketability of the | companies, and liquidity | multiples, the higher the fair | ||
underlying portfolios | discount rate. | value. | ||
Financial liabilities | Level III | Black-Scholes option | Price volatility of underlying | The higher the price volatility, |
designated at fair value | pricing model | assets. | the greater the impact on the | |
through profit or loss | /Monte-Carlo option | fair value. | ||
pricing model |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
62.
Fair value information
- continued
(c)
Fair value of financial instruments carried at fair value
- continued
- 186 -
(iii)
Financial instruments in Level III
The following table shows a reconciliation from the beginning balances to the ending balances for fair value measurement in Level III of the fair value
hierarchy:
Equity | |||||||||
Debt | instruments | ||||||||
instruments | assets at fair | Financial | |||||||
Financial | at fair value | value through | liabilities at | ||||||
assets at fair | through other | other | fair value | Derivative | |||||
value through | Other | comprehensive | comprehensive | Derivative | through | financial | |||
profit or loss | investment | income | income | financial assets | Total | profit or loss | liabilities | Total | |
As at 1 January 2024 | 18,010,586 | 380,612 | 180,463 | 105,657 | 5,709,048 | 24,386,366 | (10,879,025) | (3,457,111) | (14,336,136) |
Transfer in | 49,537 | - | - | - | - | 49,537 | - | - | - |
Transfer out | (7,307,070) | - | - | - | - | (7,307,070) | - | - | - |
Gains or losses for the year | (2,843,033) | (171,843) | (1,524) | - | (3,009,600) | (6,026,000) | 325,211 | 1,968,392 | 2,293,603 |
Changes in fair value | |||||||||
recognised in other | |||||||||
comprehensive income | - | - | 10,420 | (1,106) | - | 9,314 | - | (136,318) | (136,318) |
Additions | 676,939 | - | - | 400 | 47,598 | 724,937 | (16,786,700) | 317,237 | (16,469,463) |
Sales | (1,833,936) | - | - | - | (67,722) | (1,901,658) | - | (492,533) | (492,533) |
Settlements | (118,415) | - | (189,359) | (200) | (387,982) | (695,956) | 18,540,360 | (31,411) | 18,508,949 |
As at 31 December 2024 | 6,634,608 | 208,769 | - | 104,751 | 2,291,342 | 9,239,470 | (8,800,154) | (1,831,744) | (10,631,898) |
Total gains or losses for the | |||||||||
period included in profit or | |||||||||
loss for assets/liability held at | |||||||||
the end of the reporting | |||||||||
period | (1,604,416) | (171,844) | - | - | (3,418,295) | (5,194,555) | 296,442 | 1,641,673 | 1,938,115 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
62.
Fair value information
- continued
(c)
Fair value of financial instruments carried at fair value
- continued
(iii)
Financial instruments in Level III
- continued
- 187 -
Equity | |||||||||
Debt | instruments | ||||||||
instruments | assets at fair | Financial | |||||||
Financial | at fair value | value through | liabilities at | ||||||
assets at fair | through other | other | fair value | Derivative | |||||
value through | Other | comprehensive | comprehensive | Derivative | through | financial | |||
profit or loss | investment | income | income | financial assets | Total | profit or loss | liabilities | Total | |
As at 1 January 2023 | 20,403,033 | 741,464 | 677,873 | 87,794 | 3,235,282 | 25,145,446 | (9,660,147) | (1,281,649) | (10,941,796) |
Transfer in | 66,381 | - | - | - | - | 66,381 | - | - | - |
Transfer out | (9,737,580) | - | - | - | - | (9,737,580) | - | - | - |
Gains or losses for the year | (43,469) | (360,852) | 1,819 | - | 3,167,323 | 2,764,821 | (483,933) | (1,618,490) | (2,102,423) |
Changes in fair value | |||||||||
recognised in other | |||||||||
comprehensive income | - | - | (5,179) | 17,863 | (31,121) | (18,437) | - | (32,763) | (32,763) |
Additions | 9,511,417 | - | - | - | 21,555 | 9,532,972 | (6,989,522) | 564,316 | (6,425,206) |
Sales | (1,746,812) | - | - | - | (46,394) | (1,793,206) | - | (608,437) | (608,437) |
Settlements | (442,384) | - | (494,050) | - | (637,597) | (1,574,031) | 6,254,577 | (480,088) | 5,774,489 |
As at 31 December 2023 | 18,010,586 | 380,612 | 180,463 | 105,657 | 5,709,048 | 24,386,366 | (10,879,025) | (3,457,111) | (14,336,136) |
Total gains or losses for the | |||||||||
period included in profit or | |||||||||
loss for assets/liability held at | |||||||||
the end of the reporting | |||||||||
period | 391,908 | (360,852) | - | - | 2,487,619 | 2,518,675 | 1,515,251 | (2,030,084) | (514,833) |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
62.
Fair value information
- continued
(c)
Fair value of financial instruments carried at fair value
- continued
(iii)
Financial instruments in Level III
- continued
- 188 -
For the year ended 31 December 2024, the Group's investments in financial assets at fair value
through profit or loss of RMB 49,537 thousand were transferred from Level I to Level III, as the
fair values of these securities were determined using valuation techniques instead of quoted
prices, due to delisting (For the year ended 31 December 2023: RMB66,381 thousand).
For the year ended 31 December 2024, the Group's investments in financial assets at fair value
through profit or loss of RMB7,334 million were transferred from Level III to Level I, as the fair
values of these securities were determined using quoted prices instead of valuation techniques,
Share-based payments
As at | As at | ||||
1 January | Accrued | Decrease | 31 December | ||
Notes | 2024 | for the year | for the year | 2024 | |
Restricted Share Incentive | |||||
Scheme of A Shares | (a) | 180,789 | 31,852 | (108,017) | 104,624 |
Share-based payments of an | |||||
overseas subsidiary | 1,388,553 | 69,352 | (1,457,905) | - | |
Total | 1,569,342 | 101,204 | (1,565,922) | 104,624 | |
As at | As at | ||||
1 January | Accrued | Decrease | 31 December | ||
Notes | 2023 | for the year | for the year | 2023 | |
Restricted Share Incentive | |||||
Scheme of A Shares | (a) | 223,981 | 72,582 | (115,774) | 180,789 |
Share-based payments of an | |||||
overseas subsidiary | 1,273,641 | 114,912 | - | 1,388,553 | |
Total | 1,497,622 | 187,494 | (115,774) | 1,569,342 |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
63.
Share-based payments
- continued
- 189 -
(a)
Restricted share incentive scheme of A shares
The Company carried out a Restricted Share Incentive Scheme of A Shares whereby the
Company grant restricted A shares to the Incentive Participants in return for their services. On
29 March 2021, 45,640,000 restricted A Shares were granted to 813 incentive participants at the
grant price of RMB9.10 per Share. As at 30 March 2021, the Company had in aggregate received
subscription proceeds of RMB413,940,800 from 810 incentive participants. On 30 March 2023,
the Board and the Supervisory Committee of the Company considered and approved that the
total number of restricted shares that can be unlocked is 14,222,943 shares at the end of the first
locking period.
On 12 April 2024, the Board and the Supervisory Committee of the Company
considered and approved that the total number of restricted shares that can be unlocked is
13,269,954 shares at the end of the second locking period (Note 55).
As at 31 December 2024, there are one remaining unlocking periods under the incentive scheme,
the weighted average remaining contractual life of the incentive scheme is 0.25 years.
Details of the scheme as at 31 December 2024 and 31 December 2023 are set out below:
Year ended 31 December | ||
Number of shares | 2024 | 2023 |
Outstanding at the beginning of the year | 27,793,201 | 43,788,054 |
Granted during the year | - | - |
Exercised during the year | - | - |
Forfeited during the year | (799,597) | (1,771,910) |
Unlocked during the year | (13,269,954) | (14,222,943) |
Outstanding at the end of the year | 13,723,650 | 27,793,201 |
Exercisable at the end of the year | 13,723,650 | 27,793,201 |
As at 31 December 2024, cumulative amount of RMB 104.62 million were recognised in the
capital reserve and non-controlling interests of the Group (as at 31 December 2023: RMB180.79
million). The total expenses recognised for the year ended 31 December 2024 were RMB 31.85
(as at 31 December 2023: RMB72.58 million).
For the year ended 31 December 2024, the Company recognised share-based payment expense
amounted to RMB 4.88 million, for the restricted shares granted to the Company's key
management personnel (for the year ended 31 December 2023: RMB10.22 million).
The fair value of services received in return for restricted share Incentive scheme is measured
by reference to the fair value of shares. The estimate of the fair value of restricted shares granted
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 190 -
Company-level statement of financial position
As at 31 December | |||
Note | 2024 | 2023 | |
Non-current assets | |||
Property and equipment | 4,458,811 | 4,187,944 | |
Investment properties | 824,668 | 858,046 | |
Land-use rights and other intangible assets | 853,119 | 833,036 | |
Investments in subsidiaries | 24,728,426 | 24,611,100 | |
Interest in associates | 17,935,690 | 15,486,356 | |
Debt instruments at amortised cost | 40,618,221 | 4,697,309 | |
Financial assets held under resale agreements | 199,610 | - | |
Debt instruments at fair value through other | |||
comprehensive income | 2,317,359 | - | |
Equity instruments at fair value through other | |||
comprehensive income | 39,759 | 52,694 | |
Financial assets at fair value through profit or loss | 518,602 | 542,102 | |
Refundable deposits | 8,022,200 | 13,790,464 | |
Deferred tax assets | 844,145 | - | |
Other non-current assets | 211,190 | 262,158 | |
Total non-current assets | 101,571,800 | 65,321,209 | |
Current assets | |||
Accounts receivable | 2,340,263 | 3,437,465 | |
Other receivables and prepayments | 10,444,530 | 11,057,194 | |
Margin accounts receivable | 130,578,012 | 109,994,639 | |
Debt instruments at amortised cost | 6,938,958 | 45,169,690 | |
Financial assets held under resale agreements | 8,763,800 | 10,262,018 | |
Debt instruments at fair value through other | |||
comprehensive income | 3,351,809 | 11,663,753 | |
Financial assets at fair value through profit or loss | 205,061,120 | 284,201,311 | |
Derivative financial assets | 7,017,269 | 11,313,833 | |
Clearing settlement funds | 13,700,234 | 13,863,172 | |
Cash held on behalf of brokerage clients | 138,397,191 | 102,305,180 | |
Cash and bank balances | 16,697,767 | 14,891,188 | |
543,290,953 | 618,159,443 | ||
Assets classified as held for sale | 104,570 | - | |
Total current assets | 543,395,523 | 618,159,443 | |
Total assets | 644,967,323 | 683,480,652 | |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
64.
Company-level statement of financial position
- continued
- 191 -
As at 31 December | |||
Note | 2024 | 2023 | |
Current liabilities | |||
Short-term debt instruments issued | 28,852,939 | 16,776,642 | |
Placements from other financial institutions | 30,113,661 | 39,536,527 | |
Accounts payable to brokerage clients | 137,719,349 | 95,945,088 | |
Employee benefits payable | 2,697,793 | 2,038,688 | |
Other payables and accruals | 63,966,019 | 88,953,603 | |
Current tax liabilities | 158 | - | |
Financial assets sold under repurchase agreements | 99,120,033 | 116,230,125 | |
Financial liabilities at fair value through profit or | |||
loss | 14,705,969 | 20,737,753 | |
Derivative financial liabilities | 8,767,418 | 11,885,585 | |
Long-term bonds due within one year | 31,474,933 | 38,411,570 | |
Total current liabilities | 417,418,272 | 430,515,581 | |
Net current assets | 125,977,251 | 187,643,862 | |
Total assets less current liabilities | 227,549,051 | 252,965,071 | |
Non-current liabilities | |||
Long-term bonds | 61,356,697 | 92,708,296 | |
Non-current employee benefits payable | 4,564,615 | 4,495,899 | |
Financial liabilities at fair value through profit or | |||
loss | 334,954 | 130,342 | |
Deferred tax liabilities | - | 80,495 | |
Other payable and accruals | 406,470 | 496,826 | |
Total non-current liabilities | 66,662,736 | 97,911,858 | |
Net assets | 160,886,315 | 155,053,213 | |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
64.
Company-level statement of financial position
- continued
- 192 -
As at 31 December | |||
Note | 2024 | 2023 | |
Equity | |||
Share capital | 55(b) | 9,027,302 | 9,074,663 |
Other equity instruments | 28,300,000 | 25,700,000 | |
Treasury shares | (100,545) | (1,064,173) | |
Reserves | 97,048,119 | 94,781,954 | |
Retained profits | 26,611,439 | 26,560,769 | |
Total equity | 160,886,315 | 155,053,213 | |
Approved and authorised for issue by the board of directors on 28 March 2025.
Zhang Wei | Wang Bing |
Chairman of the Board, | Director |
Director |
HUATAI SECURITIES CO., LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Expressed in thousands of Renminbi, unless otherwise stated)
- 193 -
Comparative figures
Events after the reporting date
(a)
Issuance of bonds
From 31 December 2024 to the date of the consolidated financial statements approved and
authorised for issue, the Company has issued 8 corporate bonds with a cumulative amount of
RMB 23,200 million bearing interest of 1.60% to 2.05% per annum. Huatai International Finance
Limited, a subsidiary of Huatai International Financial Holdings Limited, has issued 1 medium-
term note with a cumulative amount of USD50 million.
(b)
Profit distribution plan after accounting periods
In March 2025, based on the Company’s total share capital of 9,027,302,281 shares as at the end
of the reporting period, the Board proposed a cash dividend distribution of RMB0.37 per share
(tax inclusive), amounting to a total cash dividend of RMB3,340 million (tax inclusive). During
2024, the Company had already implemented an interim profit distribution, distributing a cash
dividend of RMB0.15 per share (tax inclusive), totaling RMB 1,354 million (tax inclusive). The
total cash dividends distributed by the Company for the year (including the interim dividends
already allocated) amount to RMB4,694 million (tax inclusive), equivalent to a combined cash
dividend of RMB0.52 per share (tax inclusive), representing 30.58% of the consolidated net
profit attribut
able to the Company’s shareholders in 2024.
The proposal is pending for the
approval of the general meeting of the shareholders. The cash dividends are not recognised as a
liability as at 31 December 2024.
(c)
Disposal of a subsidiary
In January 2025, the Company completed the closing of the transfer of its 20% equity interest in
Jiangsu Equity Exchange Center to Jiangsu Jincai Investment Co., Ltd. Consequently, the
Company's shareholding in Jiangsu Equity Exchange Center has been reduced to 32%, and the