2020年半年度 经营业绩报告 August 2020
Stock code: 600958. SH, 3958.HK Disclaimers
This document is prepared by Orient Securities Company Limited (hereinafter referred to as the “ and is only for use at the results presentation of the Company. The information contained herein has not been independently verified No representations or warranties are made (either explicitly or implicitly) in this document, and you may not rely on the accuracy, fairness or completeness of the information contained herein The information and opinions contained herein are the statements and opinions on the day of the meeting, and are subject to change without prior notice and will not be updated or amended to reflect any developments that may arise after the day of presentation Neither the Company nor any of its affiliates, consultants or representatives disclaim any liability whatsoever for any actual or consequential loss or damages howsoever arising from the provision and use of any information contained herein The Company may change, modify or amend the contents of this document in any way without notice to any person regarding such changes, modifications or amendments. This document contains statements that constitute forward looking statements These statements may be identified by words such as “ expect”,“ plans”,“ will”,“ “ anticipate”, “intended” or words of similar meaning and intention These forward looking statements are based on numerous assumptions regarding the Company’s operations and other factors, and many of which are outside the control of the Company and are subject to significant risks and uncertainties These forward looking statements are not guarantees of future results and involve risks and uncertainties, and it is possible that the actual results may differ from those indicated in forward looking statements due to various factors and assumptions The Company has no obligation and is not committed to amending the forward looking statements contained herein to reflect future events or circumstances Therefore, you are advised not to place undue reliance on any forward looking statements. This document does not constitute an offer to sell, an offer to issue or an offer to purchase or subscribe any securities of the Company, its holding company or its subsidiaries in any jurisdiction, or an inducement to engage in investment activities, nor does it form part of the above and shall not be interpreted as any of the above. This document is highly confidential and is distributed to you only for the purpose of providing you with the information and for your own use only, and shall not be reproduced, reprinted or redistributed to any other person in any way without the prior written consent of the Company Securities laws in numerous jurisdictions restrict or prohibit unauthorized reproduction, reprint or redistribution of this document 2 目 录 1
CONTENTS 2
3
4
3 GENERAL 1 OVERVIEW
4 Market Environment in H1 2020
Performance of Key Indicators Average Daily Share Turnover
SSE Composite Index -2.15% SZSE Component Index 14.97% Average daily trading volume Average daily trading volume
Hang Seng Composite Index -6.97% ChinaBond - Total Full Price (Total Value) Index 0.84% in A-share market in H-share market (RMB100 million) (HKD100 million) 20.00% 7,579.72
10.00% 5,873.61 20.03% 0.00% 29.05% 2020-01 2020-02 2020-03 2020-04 2020-05 2020-06 -10.00%
-20.00%
-30.00% 1H2019 1H2020
Securities Financing Business Financing Situation
(RMB100 million) Margin Balance Scale of Collateralized Stock Equity Financing Scale Corporate Bonds and Enterprise Bonds 12,000 Highest: RMB1,163,768 million (RMB100 million) Financing Scale Daily average (RMB100 million) (RMB100 million) in H2 2019： 11,000 RMB949,938 million 4,311.46 18,198.15
Daily average 10,000 in H1 2020： 16.45% 5.91% 12,071.26 RMB1,079,591 million 50.76% 3,602.17 9,000 Lowest: RMB892,579 million
8,000 2019-07 2019-09 2019-11 2020-01 2020-03 2020-05 20191231 20200630 1H2019 1H2020 5 Industry Situation
Operating Income Composition of Securities Industry Industry Assets
(RMB trillion) Net Interest Income Net Interest Income Asset Management Net Capital Asset Management 12.82% 12.92% Total Assets Net Assets 7.12% 6.70% Investment Consultation Securities Investment Consultation 0.95% Investment 0.93% Revenue Securities Underwriting Securities 10.61% Financial Advisory (Inclusive of and Sponsorship Investment 2.77% 3.47% change in fair Business Revenue 3.09% Securities value) 10.36% (Inclusive of Underwriting and change in 34.68% Financial Advisory Sponsorship fair value) 1.50% Business 32.93% 8.27% Securitis Brokerage Securitis Brokerage （including trading （including trading Others seat leasing income) Others seat leasing income) 8.58% 24.51% 10.15% 24.81% 1H2019 1H2020 Customers’ Transaction Settlement Fund Amount Total Principal Sum of Funds Under Revenues of Securities Industry (Including The Credit Trading Fund) Management
(RMB trillion) (RMB100 million) (RMB trillion) Operating Incomes Net Profit
-12.95% 19.26% 19.71% 24.73%
6 The Company’s Operating Results in H1 2020
(RMB100 million)
19.14% 26.16% 2.96% 0.91%
Note: The Company's financial data are all from A-share interim report (same as below) 7 BUSINESS 2 OVERVIEW
8 Business Overview
Proprietary trading Alternative Investment 01 Securities Sales and Trading Securities research Asset management
Investment 02 Fund management Management Private equity investment Securities brokerage Futures brokerage 03 Brokerage and Securities Financing Securities financing Others Equity underwriting
Investment Banking 04 Debt underwriting Financial advisory Treasury business
Overseas business 05 Headquarters and Others Fintech 9 Revenue Structures of Business Segments and Changes
Investment Investment Banking, 5.53% Management, 16.11% Brokerage and Securities Sales Brokerage and Securities Financing, and Trading, Securities Sales and Securities Financing, 63.55% 26.09% Trading, 16.97% 56.28%
Investment Investment Banking, Managemen t, 16.62% 6.36% Changes in Segment Revenue (RMB100 million)
14.39 Securities Sales and Trading 84.39% 26.53
13.66 Investment Management 23.69% 16.89 Brokerage and 53.89 Securities Financing 6.19% 57.22
5.40 Investment Banking 4.25% 5.63
-2.53 Headquarters and Others --- -4.60
Note: Consolidation and offsetting factors were not considered when calculating segment revenue and its proportion. 10 Securities Sales and Trading: Excellent Investment Research Capabilities
Fixed Income Investment Business Financial Derivatives Business Alternative Investment Research Institute (RMB million) 99,071.53 in total Adhering to the concept of 9,339.61 Increasing investment diversity value investment 2,396.01 Stock The Company adhered to the concept of 1.31% The Company actively diversified its investment value investment, tapped into the study of Fund business and expanded to overseas investment, 90.65% 9.43% the industry and individual stocks; at the 86.85% quantitative investment and other fields, thereby Bond 86,041.14 same time, the Company implemented a 2.42% laying a solid foundation for reducing the impact Others strict dynamic trailing stop-loss of unilateral market fluctuations on its investment mechanism according to the volatility portfolio. 1,294.77 characteristics of the stock market, and 20200630 flexibly adjusted its positions based on market trends. Thanks to the investment and research advantages and reasonable 98,341.95 in total Enhanced the quality of stop-loss mechanism, the Company market-making business 6,948.16 achieved sound absolute returns during During the Reporting Period, the Company 2,553.75 the Reporting Period. Stock continued to optimize the stock investment 2.60% portfolio on the NEEQ, promoted the initial Fund 90.27% public offering of high-quality enterprises and the 7.07% 87,906.29 Bond 89.39% application for the PNTB, further enhanced the 0.95% Others quality of market-making business, as of the end of the Reporting Period, over ten projects in which the Company held positions met the 933.75 20191231 public offering conditions of the PNTB. 11 Securities Sales and Trading: Excellent Investment Research Capabilities
Equity Investment Business Financial Derivatives Business Alternative Investment Research Institute (RMB million) 99,071.53 in total 9,339.61 Trading volume of spot bonds in the inter- 2,396.01 bank market Stock 1.31% YoY growth 50.2% Fund 90.65% 9.43% 86.85% Trading volume of the market-making Bond 86,041.14 2.42% business in the inter-bank market Others YoY growth 58.9% 1,294.77 Gold and bulk 20200630 Foreign exchange Fixed income commodities business 98,341.95 in total The Company consolidated its core The Company carried out various The Company successively obtained the competitiveness in investment and proprietary trading businesses, membership of foreign exchange 6,948.16 research, timely adjusted the position settlement and sales in the inter-bank including arbitrage, trend, gold structure of fixed-income proprietary foreign exchange market and membership 2,553.75 ETF market making, hedging, Stock trading business while strengthening the of foreign currency lending in the inter- 2.60% credit risk management of bonds and lending and options in several bank foreign exchange market, and maintained its leading position in the completed the infrastructure construction Fund 90.27% exchange markets. 89.39% 7.07% 87,906.29 industry in terms of scale and performance. of foreign exchange transactions. At Bond present, it has routinely carried out spot 0.95% Others It led the industry and derivative transactions of proprietary foreign exchange settlement and sales, in market-making It won six honors for gold options, with a steady increase in scale and 933.75 and Bond Connect including the 2019 "Outstanding gradually enriched strategies. 20191231 transactions. Special Member Award" 12 Securities Sales and Trading: Excellent Investment Research Capabilities
Equity Investment Business Fixed Income Investment Business Alternative Investment Research Institute (RMB million) 99,071.53 in total ★ The active quantitative investment secured impressive performance and the intelligent trading business achieved stable income 9,339.61
2,396.01
Stock 1.31%
Fund 90.65% 9.43% 1 2 86.85% 86,041.14 Bond 2.42% Others
1,294.77 The Company actively participated in the market-making business of the exchanges and obtained business licenses 20200630
Shanghai and Shenzhen Shanghai and Shenzhen 300ETF Cotton yarn futures of 98,341.95 in total options of the Shenzhen Stock Exchange 300ETF options Gold options Zhengzhou Commodity Exchange 6,948.16 4 8 2 6 2,553.75 Stock 2.60% 7 Fund 90.27% 1 3 9 7.07% 5 Bond 89.39% 87,906.29 CFFEX Shanghai and Shenzhen 300 stock 0.95% SSE listed funds index options Silver futures of Others SSE 50ETF options Rebar futures the Shanghai Futures Exchange
933.75 The Company actively explored the potential of over-the-counter derivatives trading business, in an effort to contributed 20191231 stable income. 13 Securities Sales and Trading: Excellent Investment Research Capabilities
Equity Investment Business Fixed Income Investment Business Financial Derivatives Business
► Commission income: During the Reporting Period As at the end of the Reporting Period
1 ► Public offering commissions (including special accounts, RMB100 social security and annuity PCS million seats): RMB212 million
PCS RMB100 million ► Market share：
Investment projects Investment amount Existing business Existing scale
During the Reporting Period, 5 new equity investments totaling RMB138 Researchers Published million were added； a total of One of the existing projects applied for IPO of the PNTB； Will constantly search for pre-IPO projects with good cost performance in the research reports future and seize the opportunities of Sci-Tech Innovation Board and GEM. With analyst qualification With investment consultancy qualification
Actively participated in the strategic placement of Sci-Tech Innovation Board, with Promote the development of investment banking, wealth management and other a cumulative follow-up investment scale of RMB43 million. businesses through researches, and provide high-value services for industrial capital in a broader sense. Note: The Company engages in alternative investment business through Orient Securities Innovation Investment, a wholly-owned subsidiary of the Company. 14 Investment Management: Maintain Industry Leading Position
Fund Management - China Universal Private Equity Investment - ORIENT SECURITIES CAPITAL
(RMB million) 230,979.59 in total The net income of the entrusted asset management 222879.35 in total business of Orient Securities Asset Management 56,060.81 No. 2 ranked second in the industry 48,466.07 21.75% 24.27% 29,079.87 46.84% 35,045.61 10,239.06 Focused on improving the core competitiveness driven by both “professional 55.37% 15,955.69 58.71% investment research + professional services”, and maintained the leading position in 15.72% 23.77% 12.59% terms of the medium and long-term investment performance. 135,599.85 7.16% 123,411.98 4.43% The scale of entrusted asset management reached RMB230.98 billion, of which the scale of active management accounted for 99.51% 20191231 20200630 Collective asset management scheme Specialized asset management scheme The absolute rate of return of equity fund for the latest five years was 65.93%, which ranked in the forefront Targeted asset management scheme Publicly offered funds issued by securities dealer of the industry During the Reporting Period, Orient Securities Asset Management won 12 , including： The absolute rate of return of fixed income fund for the latest three years was 16.73%, which ranked in the The Stock Investment Return Fund Management Company Award of the “Golden Fund” Award forefront of the industry From 2005 to the end of th the Reporting Period, the The 15 Top Ten Star Fund Companies The average annualized The Five-Year Sustainable Return Star Fund Company average annualized rate of rate of return of CSI The Active Equity Investment Star Fund Company return of equity products 300 Index was 10.80% actively managed by th Orient Securities Asset The 17 Equity Investment Golden Bull Fund Company Management was 20.12% 15 Investment Management: Maintain Industry Leading Position
Asset Management - Orient Securities Asset Management
The total number of Funds under management investment projects Projects under investment
47 171 129 The private asset management business progressed steadily and continued to deepen cooperation with strategic customers such as banks, insurers and wealth management subsidiaries; It continued to expand into the pension business and actively participated in the Exited projects construction of the third pillar system of pension; 42 The e-commerce business further optimized the customer experience of the Cash Treasure platform; Enhanced layout in the international business and proactively conducted cross-border business cooperations; Projects in the pipeline 6 The construction of compliance risk control system RMB13,937 million RMB24,980 million RMB9.2 billion was continuously improved. Management scale Accumulated investment Investment amount amount involved During the Reporting Period, two investment targets applied for listing on the Sci-Tech Innovation Board and China Universal Value Selection, China two of the projects submitted before completed listing on the Sci-Tech Innovation Board Universal Blue Chip Stability, China Top 50 Best Private Equity Investment Institution in China Top 30 Best Chinese-funded Private Equity Investment Institution Universal Consumer Industry and many in China other funds won awards such as Top 10 Best Private Equity Fund Subsidiary of Brokers in China Top 20 Best Investment Institution in Advanced Manufacturing and “Golden Bull Fund” and “Star Fund” High-tech Industry in China 16 Brokerage and Securities Financing：Develop Diversified and Comprehensive Financial Service Platform Securities Financing Futures Brokerage 169 securities branches Covering 82 cities and 31 The market share of the net income of the Company’s securities provinces, autonomous brokerage business was regions and municipalities
directly under the Central The cumulative number of newly opened accounts increased by Government year-on-year, and assets of the newly opened accounts increased by year-on-year
Total assets under the Company's custody Taking advantage of the asset end, the financial products agency sales business has achieved remarkable progress Number of customers Strengthened the strict selection of assets, broadened cooperation channels in addition to Orient Securities Asset Management and China Total assets under custody of high- Universal, and established deep cooperative relations with more high- net-worth customers quality managers in the industry, in an effort to further strengthen the leading edge on the asset end and enhance the layout in investment Number of high-net-worth consultation on the buyside customers Accounting for the total assets of the Company's customers (RMB million)
During the Reporting Period, sales volume of the non-cash products of the Company reached 75,957 1 1,362 356 3,196 up year-on-year In particular, sales volume of China Universal mid-cap value selection hybrid fund reached (before placement) among brokers Collective asset Private equity investment Publicly offered funds management products Trust schemes fund products Other financial products The ownership of equity products ranked at the
17 Brokerage and Securities Financing：Develop Diversified and Comprehensive Financial Service Platform Securities Financing Futures Brokerage
Oriental Winners APP ensured the normal Implements the positioning of institutional brokerage business focusing on quantitative transactions, and provides customers with a series of optimized development of various services such as market support services from strategy generation to transaction execution, software and trends and transactions during the pandemic hardware configuration, etc.;
With the two-way opening of finance, the Company actively expanded its service Actively promoted the online construction to foreign-funded institutions, and steadily developed QFII business, with revenue of buyside investment consultation increasing by 105% year-on-year, achieving full coverage of WFOE customers’ business represented by fund investment services; consultation
The Company entered into comprehensive strategic cooperative agreements with Accelerated the integration of business in foreign asset managers such as Azimut, Neuberger Berman and BEA Union. various sectors and built multiple mobile terminals such as Oriental Winner Options APP to provide professional services for customers in options and global asset allocation
On the Internet and mobile phone platforms Through the Internet and mobile terminals
Honored as the All-round Securities Broker Junding Award “National Securities Broker Team Junding Award Active brokerage Number of customers trading The online Number of newly opened Investment and Retail Securities Broker Junding Award online accounts as a Education Base” customers as a percentage of transaction amountpercentage of the total number of accounts the total number of customers 18 opened in the same period Brokerage and Securities Financing：Develop Diversified and Comprehensive Financial Service Platform Securities Brokerage
Increase from the Increase from the Increase from the Orient Futures focus on financial technology empowered derivatives and upheld the beginning of the year beginning of the year beginning of the year business strategy of co-development of wealth management, mobile finance, financial product sales, asset management, institutional business, international business and risk ¥ management business. ¥ Scale of customer equity Scale of the total asset management ¥ ¥
Balance of margin financing Balance of securities lending Balance of margin financing and securities and securities lending of the of the Company lending on SSE and the Shenzhen Stock Exchange Company Market share of trading volume Newly opened institutional accounts Decrease from the beginning of the year Decrease from the beginning of the year The Singapore subsidiaries expanded into over-the-counter foreign exchange business with brokerage membership qualification basically covering major futures and options Down 50% exchanges around the world. from the The wholly-owned subsidiary Orient Securities Runhe facilitated enterprises to manage record high operating price risks through warehouse receipt services, basis trade and OTC options in futures and spot markets. During the Reporting Period, Orient Securities Runhe obtained 8 new market-making qualifications for futures and options.
Scale of collateralized stock across the whole market Balance of the Company’s collateralized stock business Gold Award for Outstanding Member Gold Award for Excellent Member Comprehensive Award Outstanding Member Award Outstanding Member & Platinum Award 19 Investment Banking：Various segments are promoted in a steady pace
Lead 76 projects Achieved breakthroughs in debt projects of several large financial institutions such as Shanghai Pudong underwriting Amount: RMB48.857 billion Development Bank, Bank of Communications Book-entry treasury bond underwriting, CDB financial bond underwriting and Agricultural Development Bank financial bond underwriting stood among the top two among brokers; Actively participated in the underwriting of local government bonds, among which the underwriting of local government bonds in SSE and Shenzhen Stock Exchange continued to maintain the second place in the industry.
★ 3 projects under administrative review ★ 8 companies under the supervision 2020 China Bond Financing Team Junding Award Danhua Technology, Boshen and Nasida 8 companies were listed on the NEEQ as 2020 China Bond Project Award innovation stocks under the supervision of ★ Two announced pipeline projects 2020 China Growth Enterprise Market Investment Bank Junding Award Orient Investment Banking Shanghai Phoenix, Yuancheng Gold 2020 China Inter-bank Bond Investment Bank Junding Award ★ 6 met the requirements of the PNTB ★ One cross-border acquisition financial 2020 China Asset Securitization Team Junding Award consultation project 6 met the requirements of the PNTB (only in Acquisition of the equity of Guoxuan Hi-Tech terms of financial indicators), accounting for a by Volkswagen Group higher proportion than the market average
2017 Headquarters and Others: Integration of Financial Technology into the Company's Development
The Company leverages cloud computing, big In 2019, the Company established Orient data and artificial intelligence to extend the Securities Financial Science and Technology digital integrated financial service experience Innovation Research Institute, which was to all customers and employees, so as to cover deeply integrated with various business lines, all business needs such as customer service, management layers and subsidiaries to investment decision-making and risk control strengthen technology research and application. decision-making.
For customers with high-frequency trading and quantitative In order to facilitate the Company’s wealth management trading, the Company provides a set of extremely low-latency transformation, the Company establishes an asset allocation and super-fast trading counters for institutional customers investment and research management platform, enhances the through independent research and development Company’s overall institutional customer service and customer acquisition capabilities to form a systematic investment and research service brand for Orient institutional customer. The Company cooperated with industry leading technology enterprises to jointly create an “Orient Brain”, explore the application of AI technologies such as search engine technology in the Company
Shanghai High-tech Achievement Transformation Award in 2020 The first prize of the 2019 Securities and Futures Industry Financial Technology Research and Development Center (Shenzhen). The Company’s big data demonstration project was supported by funds designated for informatization development in Shanghai. The Company cooperated with Shanghai Jiaotong University to set up a joint laboratory of artificial intelligence and financial big data, collaborated with Chinese Academy of Sciences to explore programmable chips, and carried out a school-enterprise cooperation project of “customer value system analysis” with East China University of Science and Technology. 21 FANANCIAL 3 OVERVIEW
22 Revenue and Expenses
RMB100 million 1H2019 1H2020 Change During the first half of 2020, upholding the operation strategy of Interest income 5.19 3.37 -35.13% “growth stabilization, risk control and reform promotion”, the Company pooled concerted efforts towards business operations in Commission and fee income 22.10 28.17 27.50% addition to epidemic containment. During the Reporting Period, the Investment gains 12.10 19.45 60.69% Company registered an operating income of RMB9,625 million, up
Income from changes in fair value 7.57 10.16 34.20% RMB1,546 million or 19.14% year on year. The main reason for the increase in operating income was the growth in businesses Other business income 33.82 34.17 1.01% including securities brokerage, securities proprietary trading business, and asset management.
During the first half of 2020, the Company's operating expenses RMB100 million 1H2019 1H2020 Change came to RMB7,948 million, up RMB1,284 million or 19.27% year on year. The increase in operating expenses was mainly attributable Operation and administrative expense 28.04 31.88 13.72%
to the increase in major operating costs related to income and the Credit impairment loss 4.71 12.90 174.05% year-on-year increase in the provision for impairment of stock pledge repo business. Other business coat 33.57 34.25 2.04%
23 Balance Sheet Structure
Long-term equity Details of the Company’s balance sheet as of 30 June 2020 investment, fixed assets Currencies, clearing and others settlement funds, and 4.15% deposits with exchanges The Group 's total assets stood at RMB270.758 billion,, up RMB7.786 billion or 2.96% year on year. Funds lent, financial assets 27.01% held under resale agreements and account receivables 12.79%
Currencies, clearing settlement funds, and deposits with exchanges amounted to Financial investment and derivative financial assets Assets RMB73.137 billion 56.05% Financial investment and derivative financial assets came to RMB151.764 billion RMB270.758 Funds lent, financial assets held under resale agreements and account receivables billion amounted to RMB34.622 billion Long-term equity investment, fixed assets and others amounted to RMB11.235
Funds for agency securities Payable billion buying and selling and compensation, tax securities underwriting and others 23.14% 2.20% The Group's total liabilities stood at RMB216.27 billion, up RMB7.31 billion or 3.50% year on year. Borrowings, short-term financing bill payables, bond payables and financial assets sold under repurchase Financial liabilities held agreements Borrowings, short-term financing bill payables, bond payables and financial for trading and 67.32% derivative financial Liabilities assets sold under repurchase agreements stood at RMB145.591 billion liabilities Financial liabilities held for trading and derivative financial liabilities amounted 7.34% RMB216.27 to RMB15.866 billion billion Funds for agency securities buying and selling and securities underwriting came After deducting accounts payable to brokerage customers and proceeds from agency 75.31% to RMB50.045 billion securities underwriting, the asset-liability ratio was 75.31%, down 0.44 percentage points Payable compensation, tax and others amounted to RMB4.768 billion from the end of last year. 24 Cash Dividends on Common Shares in the Past Four Years
The Company's Dividend Distribution Scheme for Common Shares in the Past Four Years (Including the Reporting Period)
Cash Dividend Amount (inclusive of tax) Proportion in the Net Profits Attributable to Ordinary Shareholders of the Company Contained in the Consolidated Financial Statements (RMB1 million)
1,398.73 in total
1,049.05 in total 932.32 in total 699.37 in total
40.29% 39.36% 56.81% 43.08%
The average dividend ratio in the past four years from 2016 to 2019 was 44.89% 2016 2017 2018 2019
25 Risk Control Indicators
Net Capital Capital Gearing Ratio (%) Net Stable Funding Ratio (%) (RMB100 million)
401.08 13.04 12.73 134.55 134.17
120 % 9.6% 373.90 100 8% %
20191231 20200630 20191231 20200630 20191231 20200630
Liquidity Coverage Ratio (%) Risk Coverage Ratio (%) Net Capital / Net Assets (%) Net Capital/Liabilities (%)
79.29 265.40 73.19 295.21 226.42 247.69
12% 120% 24% 10% 120% 20% 100% 100%
20191231 20200630 20191231 20200630 20191231 20200630
Note: The above data are calculated by financial information prepared based on Warning line by China Accounting Standards for Business Enterprises. Supervisory line 26 DEVELOPMENT 4 STRATEGY
27 Competitive Advantages of the Company
1. Professional and stable team of talents, 2. Time tested advantageous business, and outstanding investment capacity Talent mechanism that keeps pace with The Times
The Company has outstanding investment capacity. It adheres to the principle of value investing in asset management, The Company has a cohesive, stable, aggressive and inclusive senior fund management, fixed-income business, securities investment and other investment businesses, and has gone through management team. With an average of 17 years in provision of service many rounds of bull and bear markets. Its performance has been industry-leading for a long time, and its investment brand for the Company by members of its senior management team, they have enjoys a good market reputation. deep understanding of and profound management experience in the securities and financial industry.
The Company has a professional, and stable business team. Our business team has 4. Promotion of Party building culture, and further enhancement of Party building accumulated extensive experience through culture years of struggle in the market, improved its
professional ability, achieved excellent The Company attaches great importance to Party building and the building of corporate performance and formed our business brand. culture, adheres to the concept that "Party building and corporate culture define productivity", and continues to strengthen the foundation with Party building and enhance cohesion with culture. 3. Larger development space amid innovative transformation, and effective compliance risk control to ensure sound operations
The Company has complete innovation qualifications, and innovative businesses accounted for more than 30% of the Company's income. Some innovative businesses have generated brand effects and gained first-mover advantages, and The Company's "Happy Home" theme practice activity was many innovative business projects have won innovation awards. appraised as "Shanghai State-owned Enterprise Party
Each Building Brand". The Company again won Forbes' "2019 businesses In H1, no material violations and risk incidents and no Risk Management Best Employer in the World" and received the highest MSCI Each information system security incidents occurred in the Company, Fully departments coverage ESG Rating among 31 Chinese peer companies. so sound business operations were ensured. Compliance Internal Management Control Branches
All staff 28 Strategic objectives of the Company
To become a modern investment bank with first-class core competitiveness in the industry that provides integrated financial services to customers
Refine the market-oriented mechanism Enhance refined management All-round Group risk management Strengthen the application of technical tools Optimize talent selection and promotion mechanism Build a digital and intelligent comprehensive financial service platform Strengthen asset and liability management and build an offshore cash management platform Strictly implement the governance requirements of A+H listed companies √Improve the compliance management system of the Group and improve the informatization level of compliance management √Establish risk management information Consolidate and improve businesses advantages system Open up new space for growth √Enhance risk management capability in risk identification and assessment, monitoring, measurement, analysis, and response
Keep stable leverage, asset size and Group ROE level Make up disadvantages with brokerage business Promote the rapid development of investment banking Strengthen the ideological construction of the Group Enhance corporate cultural strength Deepen the transformation of innovation and the integration of industry and √Adhere to value-based service innovation transformation finance √Strengthen social responsibility and enhance brand image Promote the international strategic layout √Strengthen cultural communication and deepen the construction of "family" cultural carriers 29 Stock code: 600958. SH, 3958.HK Scan the code to follow the "Orient Securities Investor Contact Information: 86 21 63326373 Relations Platform" to promptly gain important [email protected] information of the Company