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