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DFZQ Interim / Quarterly Report 2025
50931_rns_2025-09-25_b3826328-dd9b-40db-98ec-f71370076a56.pdf
Interim / Quarterly Report
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东方证券
—DFZQ—
(A joint stock company incorporated in the People's Republic of China with limited liability under the Chinese corporate name "东方证券股份有限公司" and carrying on business in Hong Kong as "東方證券" (in Chinese) and "DFZQ" (in English))
Stock code: 03958
2025
Interim Report
Important Notice
I. The Board, the Supervisory Committee and its Directors, Supervisors and senior management of the Company warrant that the information contained herein is true, accurate and complete and there are no false representations, misleading statements contained in or material omissions from this interim report, and severally and jointly accept legal liability.
II. This report was considered and approved at the 8th meeting of the sixth session of the Board and the 4th meeting of the sixth session of the Supervisory Committee of the Company. All Directors and Supervisors of the Company attended the meetings and no Director or Supervisor has raised any objection to this report.
III. The 2025 interim financial report of the Company, prepared in accordance with the International Financial Reporting Standards ("IFRSs"), was reviewed by KPMG. Unless otherwise stated, all financial information in this report is denominated in RMB.
IV. Mr. Gong Dexiong, the chairman of the Company, Mr. Shu Hong, the accounting chief, and Mr. You Wenjie, the person-in-charge of the accounting department (head of accounting), warrant the truthfulness, accuracy and completeness of the financial report set out in the interim report.
V. The profit distribution proposal or proposal on transfer of capital reserve fund into share capital for the Reporting Period approved by the Board
The 2025 interim profit distribution plan of the Company: Based on the total share capital of the Company as at the record date for the dividend distribution, a cash dividend of RMB1.20 (inclusive of tax) for every 10 shares will be distributed to A Shareholders and H Shareholders whose names appear on the register of members on the record date for the dividend distribution.
According to the relevant provisions of the Guidelines of Shanghai Stock Exchange of Self-Regulation for Listed Companies No.7 – Repurchase of Shares and other relevant regulations, the A Shares in the Company's designated securities account for repurchase of the Company shall not be entitled to dividend distribution. Based on the Company's total share capital of 8,496,645,292 shares as at June 30, 2025, after deducting 61,546,481 shares from the Company's repurchase account as at the disclosure date of the report, the total amount of cash dividends to be distributed is RMB1,012,211,857.32, accounting for 29.23% of the consolidated net profit attributable to owners of the Parent Company during the first half of 2025.
VI. Risk representation of the forward-looking statements
Forward-looking statements, including future plans and development strategies, may be contained in this report. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Neither the Company nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information. Investors are advised to pay attention to such investment risks involved and not place undue reliance on forward-looking statements.
Interim Report 2025 DFZQ
Important Notice
VII. No appropriation of funds on a non-operating basis by the Company's controlling shareholders or their respective related parties has occurred during the Reporting Period.
VIII. The Company did not provide any external guarantee in violation of the stipulated decision-making procedures during the Reporting Period.
IX. There is no situation where more than half of the Directors of the Company are unable to guarantee the truthfulness, accuracy and completeness of the interim report disclosed by the Company.
X. Material risk warnings
General economic and political conditions, such as macroeconomic and monetary policies, laws and regulations on the financial and securities industries, upward and downward trends in the market, business and financial sectors, currency and interest rate fluctuations, availability of short-term and long-term market funding sources and financing cost, could affect the business of the Company. As a securities company, the business of the Company is directly affected by the inherent risks associated with the securities markets, including market volatility, changes in investment sentiment, fluctuations in trading volume, liquidity changes, and the creditworthiness or the perceived creditworthiness of the securities industry in the marketplace.
Risks in business operation faced by the Company mainly include: policy risks from national macro-control measures, changes in laws, regulations, relevant regulatory policies and transaction rules in securities industry, which will adversely affect the business of securities companies; the risk of unexpected potential loss in value due to changes in share prices, interest rates, exchange rates, etc. in the securities market; the risk of loss caused to the Company due to failure of the debtor or counterparty to meet its contractual obligations or changes in credit quality; the operational risk due to inadequate internal processes, employee errors and misconduct, information system failure and defects, and external events; the liquidity risk of not being able to obtain sufficient funds in a timely manner and at a reasonable cost to pay debts as they fall due, meet other payment obligations and meet the funds required for normal business operations; the risk of inability of the Company's information technology system to provide normal services, affecting the normal operation of the Company's business; the risk of discontinuity of the Company's business or information security due to inadequate protection and backup measures for information technology systems and key data; the risk of negative perception of the Company's reputation resulting from its operations, management and other actions or external events; and the money laundering risk from the utilization of the Company's products or services by criminals to engage in money laundering activities which lead to negative effects on the Company's legal, reputation, compliance, operation and other aspects. In addition, like other financial institutions, the Company is inevitably exposed to a certain degree of compliance risk, legal risk and ethical risk in the course of operation and management. For these types of risks, the Company has implemented a comprehensive risk management system that fully covers such risks, and has specified relevant responsible departments, established corresponding management systems and implemented corresponding technical measures.
Interim Report 2025 DFZQ
Important Notice
The Company has described the risks such as market risk, credit risk and liquidity risk in detail in this report. Please refer to the contents of the potential risks and prevention measures of the Company in the section entitled Report of the Board for details.
XI. Chinese and English versions of this report are provided by the Company. In the event of any discrepancy between the Chinese and English versions, the Chinese version shall prevail.
XII. Unless otherwise stated, all analysis and explanations contained in this report are prepared on a consolidated basis.
Interim Report 2025 DFZQ
CONTENTS
Page
5 Section I Definitions
8 Section II Company Profile and Key Financial Indicators
20 Section III Report of the Board
77 Section IV Corporate Governance, Environment and Society
91 Section V Significant Events
130 Section VI Changes in Shares and Information on Shareholders
136 Section VII Bonds
153 Section VIII Information Disclosures of Securities Company
154 Report on Review of Condensed Consolidated Interim Financial Report
156 Condensed Consolidated Statement of Profit or Loss
157 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
158 Condensed Consolidated Statement of Financial Position
160 Condensed Consolidated Statement of Changes in Equity
162 Condensed Consolidated Statement of Cash Flows
166 Notes to the Unaudited Condensed Consolidated Interim Financial Statements
Section I Definitions
In this report, unless the context otherwise requires, the following terms shall have the meanings as follows:
Definitions of the frequently used terms
"A Share(s)" the domestic shares of the Company with a nominal value of RMB1 each, which are listed and traded on the SSE
"Articles of Association" the articles of association of DFZQ
"Board" or "Board of Directors" the board of directors of DFZQ
"China Galaxy Securities" China Galaxy Securities Co., Ltd. (中國銀河證券股份有限公司)
"China Universal" China Universal Asset Management Company Limited (匯添富基金管理股份有限公司), an investee company of the Company
"Company" or "the Company" or "Parent Company" or "DFZQ" 東方證券股份有限公司
"Company Law" the Company Law of the People's Republic of China
"Corporate Governance Code" the Corporate Governance Code set out in Appendix C1 to the Hong Kong Listing Rules
"CSDCC" China Securities Depository and Clearing Corporation Limited (中國證券登記結算有限責任公司)
"CSRC" the China Securities Regulatory Commission
"Director(s)" the director(s) of DFZQ
"Dongguan Securities" Dongguan Securities Co., Ltd. (東莞證券股份有限公司)
"Everbright Securities" Everbright Securities Company Limited (光大證券股份有限公司)
"FICC" fixed Income, currencies and commodities
"GF Securities" GF Securities Co., Ltd. (廣發證券股份有限公司)
Interim Report 2025 DFZQ
Section I Definitions
“Group” or “the Group” or “We”
DFZQ and its subsidiaries
“H Share(s)”
the overseas listed foreign shares of the Company with a nominal value of RMB1 each, which are listed and traded in Hong Kong dollars on the Hong Kong Stock Exchange
“Hong Kong”
the Special Administrative Region of Hong Kong of the PRC
“Hong Kong Listing Rules”
the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited
“Hong Kong Stock Exchange”
The Stock Exchange of Hong Kong Limited
“IPO”
initial public offering
“Model Code”
the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Hong Kong Listing Rules
“NEEQ”
National Equities Exchange and Quotations (全國中小企業股份轉讓系統)
“Orient Finance Holdings”
Orient Finance Holdings (Hong Kong) Limited (東方金融控股(香港)有限公司), a wholly-owned subsidiary of the Company
“Orient Futures”
Orient Securities Futures Co., Ltd. (上海東證期貨有限公司), a wholly-owned subsidiary of the Company
“Orient Investment Banking”
Orient Securities Investment Banking Co., Ltd. (東方證券承銷保薦有限公司), the Company has completed the absorption of and merger with Orient Investment Banking in September 2024
“Orient Securities Asset Management”
Shanghai Orient Securities Asset Management Co., Ltd. (上海東方證券資產管理有限公司), a wholly-owned subsidiary of the Company
“Orient Securities Capital Investment”
Shanghai Orient Securities Capital Investment Co., Ltd. (上海東方證券資本投資有限公司), a wholly-owned subsidiary of the Company
“Orient Securities Innovation”
Shanghai Orient Securities Innovation Investment Co., Ltd. (上海東方證券創新投資有限公司), a wholly-owned subsidiary of the Company
Interim Report 2025 DFZQ
Section I Definitions
“Orient Securities International” Orient Securities International Financial Group Co., Ltd. (東證國際金融集團有限公司), a wholly-owned subsidiary of Orient Finance Holdings
“PRC” or “China” the People’s Republic of China and for the purpose of this report, excluding Hong Kong, the Macau Special Administrative Region of the PRC and Taiwan
“Reporting Period” January 1, 2025 to June 30, 2025
“RMB, RMB’000, RMB’0000, RMB million, RMB100 million” Renminbi Yuan, Renminbi’000, Renminbi’0000, Renminbi million, Renminbi 100 million (unless otherwise specified)
“Securities Law” the Securities Law of the People’s Republic of China
“SFC” Hong Kong Securities and Futures Commission
“SFO” the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
“Shanghai Bureau of the CSRC” the Shanghai Securities Regulatory Bureau of the China Securities Regulatory Commission
“Shenergy Group” Shenergy (Group) Company Limited (申能(集團)有限公司)
“SSE” the Shanghai Stock Exchange
“SSE Composite Index” Shanghai Stock Exchange Stock Price Composite Index
“Supervisor(s)” the supervisor(s) of DFZQ
“Supervisory Committee” the supervisory committee of DFZQ
“SZSE” the Shenzhen Stock Exchange
“SZSE Component Index” Shenzhen Stock Exchange Component Index
“Western Securities” Western Securities Co., Ltd. (西部證券股份有限公司)
Special Note: The figures presented in this report may differ slightly in the last digit from the sum of the relevant individual items due to rounding.
Interim Report 2025 DFZQ
Interim Report 2025 DFZQ
Section II Company Profile and Key Financial Indicators
I. CORPORATE INFORMATION
Chinese name of the Company
東方證券股份有限公司
Chinese abbreviation of the Company
東方證券
English name of the Company
ORIENT SECURITIES COMPANY LIMITED
English abbreviation of the Company
DFZQ
Legal representative of the Company
Gong Dexiong
General manager of the Company
Lu Dayin
Authorized representatives of the Company
Gong Dexiong, Wang Rufu
Joint company secretaries
Wang Rufu, Ngai Wai Fung
Company's Registered Capital and Net Capital
Unit: Yuan Currency: RMB
| As at the end of the Reporting Period | As at the end of last year | |
|---|---|---|
| Registered capital | 8,496,645,292.00 | 8,496,645,292.00 |
| Net capital | 57,480,610,892.61 | 53,848,274,965.67 |
Business scope of the Company:
Licensed items: securities business; securities investment advisory; securities firms providing intermediary services for futures firms. (Any business subject to approval according to law may only be operated with the approval of the competent authorities, and the specific business activities are subject to the approval documents or licenses issued by the competent authorities) General items: securities financial advisory service. (Except any business subject to approval according to law, the Company may conduct business within the scope set forth in the business license at its sole discretion according to law)
Section II Company Profile and Key Financial Indicators
Qualification for each individual business of the Company
| No. | Name of business qualification | Approving authority and approval number |
|---|---|---|
| 1 | Permit to operate securities and futures business | CSRC (No. 913100001322947763) |
| 2 | Entry qualification for national inter-bank lending market and bonds market to conduct lending, bonds purchase, spot transaction of bonds and bonds repurchase business | Monetary Policy Department of the People's Bank of China (Yin Huo Zheng [2000] No. 108) |
| 3 | Qualification for conducting online securities commissioning | CSRC (Zheng Jian Xin Xi Zi [2001] No. 8) |
| 4 | Qualification for conducting distribution business of open-ended securities investment funds | CSRC (Zheng Jian Ji Jin Zi [2004] No. 50) |
| 5 | Qualification for conducting SSE Fund Connect business | SSE Membership Department (SSE [2005]) |
| 6 | Qualification for conducting underwriting business of short-term financing bills | People's Bank of China (Yin Fa [2005] No. 275) |
| 7 | Pilot securities companies conducting relevant innovative businesses | Securities Association of China (Zhong Zheng Xie Han [2004] No. 266) |
| 8 | Qualification for conducting share transfer agency business | Securities Association of China (Zhong Zheng Xie Han [2006] No.158) |
| 9 | Qualification for conducting quotation and transfer business | Securities Association of China (Zhong Zheng Xie Han [2006] No.173) |
| 10 | Dealer qualification for Integrated Electronic Platform of Fixed-income Securities of Shanghai Stock Exchange | SSE (Shang Zheng Hui Zi [2007] No. 45) |
| 11 | Approval of brokerage business qualification on financial futures | CSRC (Zheng Jian Qi Huo Zi [2007] No. 351) |
| 12 | Qualification of Type A clearing participants of China Securities Depository and Clearing Corporation Limited | CSDCC (Zhong Guo Jie Suan Han Zi [2008] No. 25) |
| 13 | Qualification for clearing business of financial futures transaction | CSRC (Zheng Jian Xu Ke [2008] No. 684) |
| 14 | Qualification for trial operation of direct investment business | CSRC (Ji Gou Bu Bu Han [2009] No. 475) |
| 15 | Qualification for provision of intermediary and referral services to futures companies | CSRC (Hu Zheng Jian Ji Gou Zi [2010] No. 132) |
Interim Report 2025 DFZQ
Section II Company Profile and Key Financial Indicators
| No. | Name of business qualification | Approving authority and approval number |
|---|---|---|
| 16 | Establishment of wholly-owned subsidiary, Shanghai Orient Securities Asset Management Co., Ltd. and qualification for conducting securities assets management business | CSRC (Zheng Jian Xu Ke [2010] No. 518) |
| 17 | Permit to operate securities and futures business | CSRC (No. 91310000555998513B) |
| 18 | Qualification for conducting margin financing and securities lending business | CSRC (Zheng Jian Xu Ke [2010] No. 764) |
| 19 | Type 1 Licence – Dealing in securities | Securities and Futures Commission of Hong Kong (CENo. AVD362) |
| 20 | Type 2 Licence – Dealing in futures contracts | Securities and Futures Commission of Hong Kong (CENo. AWD036) |
| 21 | Type 4 Licence – Advising on securities | Securities and Futures Commission of Hong Kong (CENo. AVH864) |
| 22 | Type 9 Licence – Asset management | |
| 23 | Type 6 Licence – Advising on corporate finance | Securities and Futures Commission of Hong Kong (CENo. BDN128) |
| 24 | Qualification for implementation of the securities broker system | CSRC (Hu Zheng Jian Ji Gou Zi [2010] No. 514) |
| 25 | Establishment of Citi Orient Securities Co., Ltd., qualification for conducting investment banking business | CSRC (Zheng Jian Xu Ke [2011] No. 2136) |
| 26 | Qualification for trial operation of dealer-quoted collateralized bond repurchase business | CSRC (Ji Gou Bu Bu Han [2012] No. 20) |
| 27 | Qualification for provision of integrated services to insurance institutional investors | China Insurance Regulatory Commission (Zi Jin Bu Han [2012] No. 4) |
| 28 | Qualification for conducting securities repurchase agreement transaction business | CSRC (Ji Gou Bu Bu Han [2012] No. 481) |
| SSE (Shang Zheng Hui Zi [2012] No. 167) | ||
| SZSE (Shen Zheng Hui [2013] No. 15) | ||
| 29 | Qualification for investment manager of insurance funds | China Insurance Regulatory Commission (Zi Jin Bu Han [2012] No. 4) |
| 30 | Qualification for the pilot securities lending financing business and securities refinancing business | China Securities Finance Corporation Limited (Zhong Zheng Jin Han [2012] No. 149 and Zhong Zheng Jin Han [2012] No. 153) |
| 31 | Qualification for assets management business | CSRC (Zheng Jian Xu Ke [2012] No. 1501) |
| 32 | Qualification for conducting special institutional client business of insurance institutions | China Insurance Regulatory Commission (Notice on Conducting Special Institutional Client Business of Insurance Institutions) |
Interim Report 2025 DFZQ
Section II Company Profile and Key Financial Indicators
| No. | Name of business qualification | Approving authority and approval number |
|---|---|---|
| 33 | Permit to operate securities and futures business | CSRC (No. 91310000132110914L) |
| 34 | Qualification for financial products distribution business | Shanghai Bureau of the CSRC (Hu Zheng Jian Ji Gou Zi [2013] No. 52) |
| 35 | Qualification for conducting brokerage business in National Equities Exchange and Quotations Co., Ltd. as host broker | National Equities Exchange and Quotations Co., Ltd. (Gu Zhuan Xi Tong Han [2013] No. 44) |
| 36 | Conducting comprehensive custodian business for private equity fund (limited partnership) | CSRC (Ji Gou Bu Bu Han [2013] No. 174) |
| 37 | Qualification for conducting pilot consumption and payment service of securities funds of clients | CSRC (Ji Gou Bu Bu Han [2013] No. 207) |
| 38 | Qualification for collateralized stock repurchase business | SSE (Shang Zheng Hui [2013] No. 77) |
| SZSE (Shen Zheng Hui [2013] No. 60) | ||
| 39 | Qualification for conducting securities pledge registration agency business | CSDCC (Confirmation on Qualification for Securities Pledge Registration Agency Business) |
| 40 | Qualification for management business of publicly offered securities investment fund | CSRC (Zheng Jian Xu Ke [2013] No. 1131) |
| 41 | Qualification for equity-based return swaps and OTC options business | Securities Association of China (Zhong Zheng Xie Han [2013] No.923) |
| 42 | Qualification for conducting pilot securities refinancing business | China Securities Finance Corporation Limited (Zhong Zheng Jin Han [2013] No. 227) |
| 43 | Qualification for brokerage business of marketable securities in foreign currencies | Shanghai Bureau of State Administration of Foreign Exchange (Shang Hai Hui Fu [2014] No. 15) |
| 44 | License of Securities Business in Foreign Currency | State Administration of Foreign Exchange (SC201102) |
| 45 | Qualification for conducting market maker business in National Equities Exchange and Quotations Co., Ltd. as host broker | National Equities Exchange and Quotations Co., Ltd. (Gu Zhuan Xi Tong Gong Gao [2014] No. 54, Gu Zhuan Xi Tong Han [2014] No. 707) |
| 46 | Qualification of first batch participants in the inter-institutional private fund products quotation and service system | China Securities Capital Market Development Monitoring Centre Company Limited (List of Participants of Quotation System First Batch) |
| 47 | Permit to conduct Shanghai-Hong Kong Stock Connect business | SSE (Shang Zheng Han [2014] No. 626) |
Interim Report 2025 DFZQ
Section II Company Profile and Key Financial Indicators
| No. | Name of business qualification | Approving authority and approval number |
|---|---|---|
| 48 | Qualification for pilot OTC market business | Securities Association of China (Zhong Zheng Xie Han [2014] No. 632) |
| 49 | Qualification for pilot proprietary business of gold spot contract | CSRC (Fund Institution Supervision Department Letter [2014] No. 1876) |
| 50 | Pilot online securities business | Securities Association of China (Announcement on List of Securities Companies Conducting Pilot Online Securities Business (No. 3)) |
| 51 | Qualification for underwriting business of debt financing instruments of non-financial institutions | National Association of Financial Market Institutional Investors (Announcement of National Association of Financial Market Institutional Investors [2014] No. 16) |
| 52 | Qualification of options transaction participants of Shanghai Stock Exchange and permit to operate stock and options brokerage and proprietary operations; qualification for options clearing business | SSE (Shang Zheng Han [2015] No. 61) |
| 53 | Qualification for conducting transfer and deposit service of clients’ margin | China Securities Depository and Clearing Corporation Limited (Zhong Guo Jie Suan Han Zi [2015] No. 11) |
| China Securities Investor Protection Fund Corporation (Zheng Bao Han [2015] No. 67) | ||
| 54 | Qualification for stock and options market making business | CSRC (Zheng Jian Xu Ke [2015] No. 163) |
| 55 | Qualification for conducting quotation business for debt financing instruments of non-financial institutions | National Association of Financial Market Institutional Investors (Zhong Shi Xie Bei [2015] No. 32) |
| 56 | Qualification for sales of securities investment fund | Shanghai Bureau of the CSRC (Hu Zheng Jian Xu Ke [2015] No. 61) |
| 57 | Qualification for funds sales business | CSRC (No. 000000519) |
| 58 | Contractor of service in relation to private equity fund business | Asset Management Association of China |
| 59 | Qualification for issue of short-term financing bills | CSRC (Ji Gou Bu Han [2015] No. 3337) |
| 60 | Permit to conduct Southbound Trading business under the Shenzhen-Hong Kong Stock Connect | SZSE (Shen Zheng Hui [2016] No. 326) |
| 61 | Qualification for company conducting pilot market making business for quotation system | China Securities Internet System Co., Ltd. (Zhong Zheng Bao Jia Han [2016] No. 185) |
Interim Report 2025 DFZQ
Section II Company Profile and Key Financial Indicators
| No. | Name of business qualification | Approving authority and approval number |
|---|---|---|
| 62 | Qualification for inter-bank Gold Price Asking Transactions | Shanghai Gold Exchange (Shang Jin Jiao Fa [2017] No. 81) |
| 63 | Qualification of stock options transaction participants of Shanghai Stock Exchange | SSE (Shang Zheng Han [2017] No. 165) |
| 64 | Authorization for pledge-type dealer-quoted repurchase transactions of Shenzhen Stock Exchange | SZSE (Shen Zheng Hui [2017] No. 371) |
| 65 | Qualification for primary market makers of SSE 50ETF Options | SSE (Shang Zheng Han [2018] No. 430) |
| 66 | Qualification of the custodian business for securities investment funds | CSRC (Zheng Jian Xu Ke [2018] No. 1686) |
| 67 | Qualification for conducting securities underwriting business (only including government bonds such as treasury bonds, local government bonds, financial bonds of policy banks, financing instruments governed by the National Association of Financial Market Institutional Investors (including but not limited to debt financing instruments of non-financial institutions)) | Shanghai Bureau of the CSRC (Hu Zheng Jian Xu Ke [2019] No. 8) |
| 68 | Qualification for primary market makers of SSE listed funds business | SSE (Shang Zheng Han [2019] No. 101) |
| 69 | Qualification for credit derivatives business (inter-bank market credit risk relieving instruments, stock exchange market credit risk relieving instruments and other credit derivatives selling business approved by regulatory authorities) | CSRC (Ji Gou Bu Han [2019] No. 463) |
| 70 | Qualification for market making business of treasury bond futures | CSRC (Ji Gou Bu Han [2019] No. 1023) |
| 71 | Standard pilot for Internet investment account | Securities Association of China (Zhong Zheng Xie Han [2019] No.185) |
| 72 | Authorisation for trading of stock option business on SZSE | SZSE (Shen Zheng Hui [2019] No. 470) |
| 73 | Qualification for commodity options market making business | CSRC (Ji Gou Bu Han [2019] No. 3058) |
Interim Report 2025 DFZQ
Section II Company Profile and Key Financial Indicators
| No. | Name of business qualification | Approving authority and approval number |
|---|---|---|
| 74 | Qualification for stock index options market making business | CSRC (Ji Gou Bu Han [2019] No. 3067) |
| 75 | Qualification for Shanghai and Shenzhen 300 ETF option primary market maker business on SZSE | SZSE (Shen Zheng Hui [2019] No. 483) |
| 76 | Qualification for Shanghai and Shenzhen 300 ETF option primary market maker business on SSE | SSE (Shang Zheng Han [2019] No. 2300) |
| 77 | Qualified domestic institutional investor | CSRC (Zheng Jian Xu Ke [2019] No. 1470) |
| 78 | Operation Qualification of Settlement and Sale of Foreign Exchange Business | State Administration of Foreign Exchange (Hui Fu [2020] No. 10) |
| 79 | Qualification for Foreign Exchange Agency Business | State Administration of Foreign Exchange (Hui Zong Bian Han [2020] No. 482) |
| 80 | Qualification for Fund Investment Advisory Business | Securities and Fund Institution Supervision Department (Ji Gou Bu Han [2021] No. 1686) |
| 81 | Qualification for Proprietary Trading of Carbon Emission Rights | CSRC (Ji Gou Bu Han [2023] No. 100) |
| 82 | Securities Underwriting and Sponsorship | CSRC (Zheng Jian Xu Ke [2023] No. 425) |
| 83 | Capital Markets Services License (Securities and Futures Activities) of Singapore Subsidiary of Orient Futures | Monetary Authority of Singapore (CMS100869) |
| 84 | Central Bank Swap Facility Business Qualification | CSRC (Ji Gou Si Han [2024] No. 1878) |
In addition, the Company is a member of the Securities Association of China, SSE, SZSE, National Debt Association of China and Shanghai Gold Exchange. It is also a clearing participant of CSDCC and a member of the Asset Management Association of China.
Interim Report 2025 DFZQ
Section II Company Profile and Key Financial Indicators
II. CONTACT PERSONS AND CONTACT METHODS
| Secretary to the Board | Representative of securities affairs | |
|---|---|---|
| Name | Wang Rufu | Li Tingting |
| Correspondence address | 11/F, No. 119 South Zhongshan Road, Huangpu District, Shanghai, the PRC | 11/F, No. 119 South Zhongshan Road, Huangpu District, Shanghai, the PRC |
| Tel | +86-021-63325888 | +86-021-63325888 |
| Fax | +86-021-63326010 | +86-021-63326010 |
| [email protected] | [email protected] |
III. BASIC INFORMATION
| Registered address | Orient Securities Building, No. 119 South Zhongshan Road, Huangpu District, Shanghai, the PRC |
|---|---|
| Business address | Orient Securities Building, No. 119 South Zhongshan Road, Huangpu District, Shanghai, the PRC |
| 2-6/F, 9/F, 12/F, 14/F, 19/F, 23-27/F, 32/F, 37/F and 38/F, Building 2, No. 318 South Zhongshan Road, Huangpu District, Shanghai, the PRC | |
| Postal code of business address | 200010 |
| Place of business in Hong Kong | 28-29/F, No. 100 Queen's Road Central, Central, Hong Kong |
| Company website | www.dfzq.com.cn |
| [email protected] | |
| Investor relations hotline | +86-021-63326373 |
| Customer service hotline for brokerage business | 95503 |
Interim Report 2025 DFZQ
Interim Report 2025 DFZQ
Section II Company Profile and Key Financial Indicators
IV. INFORMATION DISCLOSURE AND PLACE FOR INSPECTION
| Newspapers designated by the Company for information disclosure | China Securities Journal (www.cs.com.cn) |
|---|---|
| Shanghai Securities News (www.cnstock.com) | |
| Securities Daily (www.zqrb.cn) | |
| Securities Times (www.stcn.com) | |
| Websites for publication of interim reports | www.sse.com.cn (SSE) |
| www.hkexnews.hk (Hong Kong Stock Exchange) | |
| Place where the interim reports of the Company are available | 11/F, Orient Securities Building, No. 119 South Zhongshan Road, Huangpu District, Shanghai, the PRC |
V. BRIEF INFORMATION ON SHARES OF THE COMPANY
| Type of shares | Stock exchange of listing | Stock abbreviation | Stock code |
|---|---|---|---|
| A Shares | SSE | 東方證券 | 600958 |
| H Shares | Hong Kong Stock Exchange | DFZQ | 03958 |
VI. OTHER RELEVANT INFORMATION
| Domestic accounting firm appointed by the Company | Name | KPMG Huazhen LLP (畢馬威華振會計師事務所(特殊普通合夥)) |
|---|---|---|
| Office address | 25/F, Tower 2, Plaza 66, No. 1266 West Nanjing Road, Shanghai, China | |
| Name of the signing accountants | Zhang Nan, Ni Yi | |
| Overseas accounting firm appointed by the Company | Name | KPMG (畢馬威會計師事務所) |
| Office address | 8/F, Prince’s Building, 10 Chater Road, Central, Hong Kong | |
| Name of the signing accountant | Pang Shing Chor Eric | |
| Chief Risk Officer and Chief Compliance Officer | Jiang Helei | |
| Legal Advisor to the Company as to the PRC law | Grandall Law Firm (Shanghai) | |
| Legal Advisor to the Company as to Hong Kong law | Clifford Chance | |
| A Share Registrar | Shanghai Branch of CSDCC | |
| H Share Registrar | Computershare Hong Kong Investor Services Limited |
Section II Company Profile and Key Financial Indicators
VII. KEY ACCOUNTING DATA AND FINANCIAL INDICATORS OF THE COMPANY
(i) Key Accounting Data
Unit: '000 Currency: RMB
| Items | From January to June 2025 | From January to June 2024 | The current period as compared with the previous period (%) |
|---|---|---|---|
| Operating results | |||
| Revenue, other income and gains | 12,324,631 | 9,725,722 | 26.72 |
| Profit before income tax | 4,293,630 | 2,271,075 | 89.06 |
| Profit for the period – attributable to shareholders of the Company | 3,463,071 | 2,111,371 | 64.02 |
| Net cash (used in)/generated from operating activities | (12,843,799) | 514,675 | -2,595.52 |
| Earnings per share (RMB/share) | |||
| Basic earnings per share | 0.40 | 0.24 | 66.67 |
| Diluted earnings per share | N/A | N/A | N/A |
| Indicators of profitability | |||
| Weighted average returns on net assets (%) | 4.27 | 2.66 | Increase of 1.61 percentage points |
Interim Report 2025 DFZQ
Section II Company Profile and Key Financial Indicators
Unit: '000 Currency: RMB
| Items | June 30, 2025 | December 31, 2024 | As at the end of the Reporting Period as compared with as at the end of last year (%) |
|---|---|---|---|
| Indicators of scale | |||
| Total assets | 437,358,182 | 417,736,375 | 4.70 |
| Total liabilities | 352,523,191 | 336,336,559 | 4.81 |
| Account payables to brokerage clients | 120,249,508 | 113,637,365 | 5.82 |
| Equity attributable to shareholders of the Company | 84,832,083 | 81,396,740 | 4.22 |
| Share capital ('000 shares) | 8,496,645 | 8,496,645 | 0.00 |
| Net assets per share attributable to shareholders of the Company (RMB/share) | 10.06 | 9.62 | 4.57 |
| Gearing ratio (%)^{Note} | 73.25 | 73.20 | Increase of 0.05 percentage point |
Note: Gearing ratio = (Total liabilities – Account payables to brokerage clients – Funds payable to securities issuers)/(Total assets – Account payables to brokerage clients – Funds payable to securities issuers)
Interim Report 2025 DFZQ
Section II Company Profile and Key Financial Indicators
(ii) Net Capital and Risk Control Indicators of the Parent Company
Unit: '000 Currency: RMB
| Items | As at the end of the Reporting Period | As at the end of last year |
|---|---|---|
| Net capital | 57,480,611 | 53,848,275 |
| Net assets | 78,790,815 | 75,847,513 |
| Risk coverage rate (%) | 436.72 | 373.48 |
| Capital gearing ratio (%) | 18.59 | 18.13 |
| Liquidity coverage ratio (%) | 192.24 | 202.82 |
| Net stable funding ratio (%) | 139.38 | 148.83 |
| Net capital/net assets (%) | 72.95 | 71.00 |
| Net capital/liabilities (%) | 26.34 | 25.68 |
| Net assets/liabilities (%) | 36.10 | 36.17 |
| Proprietary equity-based securities and its derivatives/net capital (%) | 26.06 | 24.80 |
| Proprietary non-equity securities and its derivatives/net capital (%) | 323.07 | 365.23 |
Note: All data above have been calculated based on the financial information prepared in accordance with the China Accounting Standards for Business Enterprises ("CASBE"). The indicators as at the end of the period were compiled in accordance with the Provisions on the Calculation Standards for Risk Control Indicators of Securities Companies (《證券公司風險控制指標計算標準規定》) ([2024] No. 13) issued by the CSRC. The indicators as at the end of last year have been restated using the same criteria.
VIII. DIFFERENCES BETWEEN IFRSS AND CASBE
Net profits for January to June 2025 and January to June 2024, and net assets as at June 30, 2025 and December 31, 2024 as stated in the consolidated financial statements of the Company prepared in accordance with CASBE are consistent with those prepared in accordance with IFRSs.
Interim Report 2025 DFZQ
Section III Report of the Board
I. EXPLANATIONS ON THE INDUSTRY AND PRINCIPAL BUSINESSES ENGAGED BY THE COMPANY DURING THE REPORTING PERIOD
In the first half of 2025, despite the disruptions caused by adverse factors such as the China-U.S. tariff war, the Party Central Committee with Comrade Xi Jinping at its core has strengthened overall leadership over economic work. All regions and departments have made concerted efforts to overcome difficulties, and various macro policies have worked in synergy. As a result, the economy has shown a positive trend, social confidence has been continuously boosted, high-quality development has been advanced solidly, and the overall social situation has remained stable. Domestic demand continued to recover as driven by the expansionary fiscal policies, reductions in the required reserve ratio and interest rates in the financial sector as well as the trade-in program for consumer goods and other measures, showing that the Chinese economy got off to a strong start. Meanwhile, industrial upgrading and technological innovation continued to enhance economic development quality, and hotspots kept emerging in areas such as DeepSeek and humanoid robots, driving steady progress in economic restructuring. This not only strengthens confidence in the effectiveness of national governance and the shift from old to new growth drivers, but also positions China as an important anchor of certainty in the current international landscape.
China's capital market is making steady progress under the dual drivers of reform deepening and vitality stimulation. There has been a flurry of policy actions. At the policy level, further measures have been introduced to stabilize the market and expectations. At the beginning of the year, the Action Plan for Promoting the High-Quality Development of Capital Market Indexed Investment was launched. In the middle of the year, a series of measures were rolled out successively, including the Action Plan for Promoting the High-Quality Development of Publicly Offered Funds, the revision of the rules on major asset restructurings of listed companies, significant reforms to the STAR Market through the introduction of the "1+6" initiatives as well as the activation of the third set of listing standards for the ChiNext Board, which have continuously optimized the market environment supporting innovation. In the meantime, "maintaining stability and vitality in the capital market" has become the consistent policy priority. While working to consolidate the positive momentum of the market, the government also focuses on boosting trading activity and vigorously promoting the entry of medium- and long-term funds into the market, in a bid to establish a virtuous cycle of "increasing returns, inflowing funds, and stable market". Ultimately, it will serve the high-quality development of the real economy, especially new quality productive forces. In terms of market performance, the A share market as a whole fluctuated within a relatively narrow range, but generally showed an upward trajectory. The SSE Composite Index rose by 2.76%, the SZSE Component Index increased by 0.48%, the ChiNext Index climbed slightly by 0.53%, and the BSE 50 Index led the pack with a cumulative gain of 39.45%.
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As the securities industry accelerated its transformation toward high-quality development and the capital market continued to deepen reforms, securities firms demonstrated the characteristics of "steady progress with structural differentiation". Leading securities firms consolidated their advantages through mergers and acquisitions and restructuring, while small and medium-sized securities firms actively focused on niche strategies. On the one hand, securities firms have actively responded and supported scientific and technological innovation and the development of new quality productive forces by accelerating their business expansion in areas such as equity financing and science and technology innovation bonds. On the other hand, benefiting from the rebound of the market and the rising trading activity, the scale of the brokerage, proprietary trading, margin financing and securities lending businesses has increased, effectively enhancing profitability.
The Company is a comprehensive securities company established under the CSRC's approval, which provides all-round, one-stop financial services covering securities, futures, asset management, investment banking, investment consultancy and securities research. Adhering to its mission of serving the national strategy and supporting real economy development, the Company focuses on five major areas including technology finance, green finance, inclusive finance, pension finance and digital finance, takes "collectivization, digitalization, and internationalization" as strategic drivers and maintains a customer-centric approach while comprehensively deepening reforms and promoting transformational development. The Company has established three major business systems, namely, comprehensive wealth management, comprehensive investment banking and comprehensive institutional business, and developed four major business segments, namely, wealth and asset management, investment banking and alternative investments, institutions and sales trading, international and other businesses. These business systems and segments have fostered differentiated competitive advantages in asset management, wealth management, futures business and proprietary investment. The Company's revenue model primarily comprises fee and commission income, interest income from providing financial products or services to customers, and investment income from securities or equity investments.
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The specific business segment structure is as follows:
| Wealth and asset management | Investment banking and alternative investments | Institutions and sales trading | International and other businesses |
|---|---|---|---|
| ■ wealth management | ■ investment banking | ■ proprietary investment | ■ international business |
| ■ asset management | ■ alternative investments | ■ client-oriented services | ■ other business |
| ■ futures business | ■ market-making business | ||
| ■ research services | |||
| ■ custodian business |
The wealth and asset management segment mainly provides clients with services such as securities brokerage, financial products, investment advisory, margin financing and securities lending, asset management as well as futures business.
The investment banking and alternative investments segment mainly includes services provided to customers such as stock underwriting and sponsoring, bond underwriting, financial advisory, and diversified corporate solutions as well as alternative investments.
The institutions and sales trading segment mainly consists of proprietary investment, client-oriented services, market-making business, research services and custodian business. Among them, proprietary investment includes investment transactions such as in equity, fixed income, commodities and foreign exchange; client-oriented services include OTC derivatives and FICC agency services.
The international and other businesses segment mainly includes the international business and other businesses. Among them, the international business mainly relies on overseas platforms such as Orient Finance Holdings, Orient Securities International and their subsidiaries, as well as the Singapore subsidiary of Orient Futures for business layout, and conducts businesses such as securities and futures brokerage, asset management, investment banking, and margin financing.
II. MANAGEMENT DISCUSSION AND ANALYSIS
In the first half of 2025, the Company actively advanced the implementation of its new three-year strategic plan, with the goal of building a first-class modern investment bank. It focused on the three major areas of comprehensive wealth management, comprehensive investment banking and comprehensive institutional business, and by pursuing a strategy of differentiation and specialization, and upholding the dual drivers of steady operations and quality improvement and efficiency enhancement, it achieved coordinated growth in scale, efficiency, and quality, with business development maintaining a positive trajectory.
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(i) Wealth and asset management
1. Wealth management
The Company conducts wealth management business mainly through the wealth management committee and its subordinate first-level departments and branches. During the Reporting Period, the Company optimized the organizational structure of its wealth management committee, adhered to the principle of "collaboration between headquarters and branches + in-depth cultivation of regions", established four branches in Shanghai, Beijing, Fujian and Shenzhen, constructed a client-centered wealth management integrated service platform, and continued to promote the in-depth transformation of its wealth management business towards a "buy-side investment adviser" model and provide support in organizational structure for the efficiency of capital market to serve inclusive finance and pension finance. By strategically developing innovative business models and diversified business scenarios that are closely aligned with the interests of investors, the Company has made every effort to build an all-round business synergy matrix covering securities trading agency, publicly offered products distribution, publicly offered fund investment advisory, institutional wealth management, private wealth management, and personal pension.
(1) Securities brokerage business
In the first half of 2025, the A share market exhibited a volatile yet stabilizing trend with structural divergence. Macroeconomic policies remained accommodative, liquidity stayed reasonably ample, and investor confidence gradually recovered. Trading activity in the equity market increased steadily, supporting resilient growth in securities brokerage operations. According to Wind Data, as at the end of the first half of 2025, the SSE Composite Index increased by 2.76%; the SZSE Component Index increased by 0.48% and STAR Market 50 Index rose by 9.93% driven by the "new quality productive forces" theme, particularly in artificial intelligence, smart manufacturing, and advanced materials. Publicly offered fund issuance maintained stable momentum with improved product structure, while ETFs continued to expand. Bond funds and pension-target funds sustained steady growth.
Interim Report 2025 DFZQ
Section III Report of the Board
In terms of customer base development, at the end of the Reporting Period, the Company had a total of 172 securities branches, covering 86 cities; the Company had 3.139 million customer capital accounts, representing an increase of 7.52% from the beginning of the year; and total assets under custody amounted to RMB959.3 billion, representing an increase of 9.21% from the beginning of the year. The Company implemented a strategy focused on the North Star metrics of "AUM + MAU", guiding branch networks to proactively adjust business models. We organized multiple performance-driven campaigns and "Good Start" specialized marketing initiatives to incentivize branches and employees, promoting the reasonable growth in customer scale and steady improvement in quality. We highly emphasized and continued to deepen our strategic deployment in trading services through technology-driven resource integration to establish our core competitiveness. A fully functional, user-friendly standardized trading platform was developed, complemented by customized solutions for professional institution clients including quantitative private funds and QFIIs. During the Reporting Period, the Company added 228 thousand new client accounts and attracted RMB24.5 billion in newly onboarded assets, representing a year-on-year increase of 90% and 45%, respectively. Branches' market share in equity and fund trading reached 1.35%, representing an increase of 0.44 percentage point year-on-year.
In terms of product sales, the Company has actively expanded various channels. It has been selected as a key cooperative securities firm by multiple banks, jointly carried out marketing activities during peak season with depository institutions, vigorously implemented brand promotion, and enhanced the Company's influence. Focusing on the key directions of its business, the Company has optimized its product matrix, enriched the agency sales of publicly offered fund, launched a total of more than 100 private equity products, and launched a preferred fund brand "Orient Winner 50", which provides customized wealth management solutions. In addition, the Company has also actively developed ETF portfolio strategies, and built an ETF tool platform, so as to enhance the promotion of ETF business, with remarkable results achieved. During the Reporting Period, the Company successfully issued the first ETF securities settlement product with a fundraising scale of RMB623 million, and achieved fundraising scale of RMB478 million for the floating-rate products of Orient Securities Asset Management. During the Reporting Period, the sales scale of non-monetary products amounted to RMB11.728 billion, representing an increase of 24.54% as compared with the same period last year. As at the end of the Reporting Period, the holding size of non-monetary products was RMB56.583 billion, representing an increase of 1.36% from the beginning of the year.
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The following table sets forth the types and amounts of all the financial products the Group distributed during the periods indicated, including Over-the-Counter (OTC) products:
| (in RMB100 million) | January – June 2025 | January – June 2024 |
|---|---|---|
| Publicly offered funds (including monetary funds) | 873.50 | 541.62 |
| Trust schemes | 19.87 | 20.76 |
| Private equity investment fund products | 4.76 | 1.08 |
| Other financial products | 8.60 | 21.29 |
| Total | 906.74 | 584.75 |
In terms of private wealth management, during the Reporting Period, the Company continued to advance the initial offering and ongoing marketing of private fund products. It successfully rolled out six types of previously untapped strategies, including index-linked floating return products, quantitative hedge funds, CTA, A500 Enhanced Index Funds, CSI 1000 Enhanced Index Funds, and Fixed Income+. This initiative essentially established a private fund product system covering low, medium, and high risk-return profiles, thereby significantly enriching and refining the Company's private fund product offerings. As at the end of the Reporting Period, the Company had 8,985 retail high-net-worth clients, representing an increase of 12.13% from the beginning of the year, and the total size of assets reached RMB207.025 billion, representing an increase of 11.28% from the beginning of the year.
In terms of securities investment advisory, the Company continuously strengthened its investment advisory brand recognition and expanded its market influence. During the Reporting Period, the Company launched a pilot program for its securities investment advisory business, collaborating with relevant departments to conduct comprehensive staff training and selection, gradually establishing a professional and influential securities investment advisory team. The Company launched an investment advisory section within its APP, realizing the online operation of the entire process including product development, review, client contracting and service delivery. The Company also initiated the development of a securities investment advisory platform, completed the first phase of the project, and established three basic operational functions of the platform, namely personnel management, product management, and fee management.
Interim Report 2025 DFZQ
Section III Report of the Board
In terms of trading support, during the Reporting Period, the Company successfully shifted to and launched its next-generation low-latency centralized trading system, covering accounts, over-the-counter trading, options trading, securities settlement trading, margin financing and securities lending, and centralized trading businesses, comprehensively improving its business processing efficiency, customer service experience, and trading performance indicators. By focusing on customers, the Company enriched its trading tools and enhanced its service matrix. It has promoted professional program trading services and deployed a pre-trade risk control platform, introduced algorithmic strategies and launched the "Winner T0" strategy within its APP, integrated and optimized professional trading systems to enhance service efficiency; improved the performance of intelligent and premium quotation systems to meet customers' diversified needs. The Company also improved the securities settlement system and realized the trading of ETF securities settlement products, and provided comprehensive trading support for QFII clients and domestic clients, facilitating the introduction of new business lines. Furthermore, it promoted options and IB businesses, strengthening business synergy with the subsidiary Orient Futures.
In terms of digital finance, focusing on scenario applications and APP function optimization, the Company enhanced digital operation capabilities, and was committed to building a digital wealth management model empowered by technology and driven by investment advisory services. During the Reporting Period, centering on customer needs, it comprehensively improved the service capabilities of core scenarios such as market condition, trading, wealth management, and accounts on the Oriental Winner APP. It created one-stop intelligent trading services for wealth management, launched services such as the Winner T0 strategic trading tool, Winner 50 fund strategy pool, investment advisory zone and Winner account, so as to enhance customers' investment efficiency and sense of gain. Moreover, it dynamically matched customer needs to provide customized services, offering customers an exclusive experience.
In the future, the Company will strive to give full play to its role as a social wealth manager, focus on customer base management, deepen the construction of the three-force mechanism of "headquarters driving, policy penetration and branch capacity", and build a co-constructed, co-governed, and shared digital wealth management ecosystem centered on the four transformation elements of customers, products, teams, and channels. It will promote the growth of customer scale and quality through acquiring high-quality customers, high-efficiency conversion, and retaining customers with high-value returns. It will improve the development of buy-side investment advisory services, anchored by robust investment capabilities and precise advisory services, and take the implementation of "quick-win projects" as a breakthrough to form an O2O synergy between online and offline channels. In addition, the Company will continuously improve the "headquarters-branch-business department" three-level structure management model, transforming to a regional comprehensive operation model led by branch companies.
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(2) Fund investment advisory business
In the first half of 2025, residents' financial management needs gradually recovered, accompanied by a notable increase in appetite for equity asset allocation. Against the backdrop of ongoing regulatory efforts to promote the high-quality development of the industry, the fund investment advisory business advanced steadily. The concept of "buy-side investment adviser" gained increasing recognition among investors, who showed a growing expectation for professional guidance and stable returns, thereby laying a more solid foundation for the long-term development of fund investment advisory business.
During the Reporting Period, the Company remained committed to its "customer-centric" philosophy and focused on enhancing its product offerings, investment strategies, and service capabilities to drive the high-quality growth of its fund investment advisory business:
Firstly, the portfolio strategy system is improving. A total of 28 portfolio strategies were launched under the fund investment advisory business, covering three major product lines: namely the "Yue" series, the "Ding" series, and the customised series, which fully meet the diverse and personalised investment needs of customers. This has gradually shaped a service model centred on standardised portfolios, complemented by customised solutions.
Secondly, the scale and customer base remained stable. As at the end of the Reporting Period, the holding size of fund investment advisory business amounted to RMB14.925 billion and the number of existing clients amounted to 110.4 thousand with a client retention rate of 52.83%, a reinvestment rate of 75.95% and an average service usage duration of 805 days, indicating continued improvement in long-term client satisfaction.
Thirdly, investment research and advisory services have been continuously strengthened. Leveraging the "Dongfang Morning Brief (東方早知道)" morning meeting as a platform, the Company continued to enhance its investment research service mechanism by fostering collaboration between the research department and front-line business teams, thereby optimising advisory strategies and upgrading the client engagement framework.
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In the future, the Company will continue to adhere to the core principles of "buy-side investment adviser", further strengthening portfolio research and strategy development, enriching its product and style offerings, and enhancing differentiated service capabilities. At the same time, the Company will continue to reinforce team building and system support, and advance the transformation of fund investment advisory business from "product-based delivery" to "solution-based delivery". The Company aims to build a leading integrated fund investment advisory service platform in the industry, providing clients with professional, prudent, and long-term asset allocation services.
(3) Credit trading business
During the Reporting Period, market performance was marked by upward volatility, with the size of margin financing fluctuating accordingly and securities lending volumes showing a slight increase. As at the end of the Reporting Period, the market balance of margin financing and securities lending amounted to RMB1,850.452 billion, representing a decrease of 0.76% from the end of last year. Among them, the balance of margin financing amounted to RMB1,838.149 billion, representing a decrease of 0.86% from the end of last year; the balance of securities lending amounted to RMB12.304 billion, representing an increase of 17.88% from the end of last year.
In terms of the margin financing and securities lending business, the Company upheld the "three goods and three excellences" principles, with a focus on serving high-net-worth clients, improving the pricing mechanism for margin financing, responding proactively to branch-level needs, and expanding its client and business base. The Company continued to iterate its new-generation trading system, introducing credit conditional orders for clients and building a smart credit data platform. Risk management was further enhanced through optimised collateral management and strengthened intelligent risk controls, ensuring stable business operations and the security of client assets. As at the end of the Reporting Period, the balance of margin financing and securities lending of the Company amounted to RMB26.916 billion, and the market share was 1.45%, with an average maintenance guarantee ratio of 278.44%.
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In terms of the collateralized stock business, the Company continued to adhere to the principles of "risk control and scale reduction" and made every effort to promote the risk disposal of the collateralized stock business. As at the end of the Reporting Period, the outstanding balance of the Company's collateralized stock business amounted to RMB2.778 billion, all of which was contributed with proprietary funds, representing a decrease of 4.11% from the end of last year, and the risk was further eliminated.
In the future, the Company will create a new growth point in profitability through structural optimisation, refined management, and strengthened risk control. Meanwhile, the Company will continue to promote the risk mitigation and liquidation of collateralized stock business.
2. Asset management
The Company mainly engages in securities asset management business through Orient Securities Asset Management, a wholly-owned subsidiary of the Company; engages in fund management business through China Universal, an associate of which the Company is the largest shareholder holding 35.412% of the shares; and engages in private equity investment business through Orient Securities Capital Investment, a wholly-owned subsidiary of the Company.
(1) Securities asset management business
In the first half of 2025, the A-share market showed a pattern of volatility and recovery with frequent industry rotating; the bond market initially declined but then rebounded, accompanied by a narrowing of credit spreads. Opportunities and challenges coexisted in the asset management industry. On the one hand, it must adapt to the new landscape marked by heightened uncertainty in global major asset classes, persistently declining product rates, and continuously expanding fund supply; On the other hand, the introduction of policies such as the Action Plan for Promoting the High-Quality Development of Public Funds (《推動公募基金高質量發展行動方案》) promotes the transformation of the industry from scale-focused to prioritizing investor returns, which may reshape competition pattern and development mode of the industry. How to achieve high-quality development in uncertainty becomes a topic for various asset management organizations.
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During the Reporting Period, Orient Securities Asset Management promoted its transformation and development at a faster pace. In terms of investment and research system, the platform-based, integrated and multi-strategy construction was actively promoted. In terms of product system, a comprehensive market-aligned review was conducted to further improve the product matrix. In terms of sales system, it improved service capabilities through demand-driven client segmentation and tailored product strategies, shifting from personnel-driven to strategy-driven models.
During the Reporting Period, Orient Securities Asset Management's several products have registered outstanding results, contributing to the stabilization and rebound of the overall management scale. In particular, Dong Fang Hong Core Value (東方紅核心價值) raised RMB1.991 billion, rendering it the first floating rate fund that completed fundraising for reaching the limit for fundraising scale, and its fundraising scale ranked first among all equity-oriented hybrid funds at initial offering during the Reporting Period; Dong Fang Hong Yingfeng FOF (東方紅盈豐FOF) raised more than RMB6.5 billion, which is the largest FOF product launched in recent 3 years as at the end of the Reporting Period and the largest publicly offered fund issued during the Reporting Period. The company has profound traditional businesses with long-term outperformance in active equity, leading bond investment capabilities and outstanding performance in fixed income and long-term results. Emerging businesses exhibit robust performance, with dividend low volatility index ranking the first among the best and FOF products registering outstanding performance. As at the end of the Reporting Period, the absolute return of equity-based funds was 80.32% for the last ten years, ranking second in the industry (source: Galaxy Securities Fund Research Center – Long-term Assessment Ranking of Capability in Active Management of Equity Investment). The absolute rate of return of fixed income funds for the last seven years was 35.98%, ranking among the top 20% in the industry (source: Guotai Haitong Securities Research Institute – Performance Rankings of Equity and Fixed Income Assets of Fund Managers).
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As at the end of the Reporting Period, the total scale of assets under the entrusted management of Orient Securities Asset Management amounted to RMB233.781 billion, and a total of 271 products were managed. Among them, the management scale of publicly offered funds was RMB179.136 billion, and a total of 116 products were managed. The following table sets forth the scale of assets under management (AUM) of the Company by product type:
| (in RMB100 million) | As at June 30, 2025 | As at December 31, 2024 |
|---|---|---|
| Collective asset management scheme | 208.80 | 203.07 |
| Single asset management scheme | 280.66 | 246.53 |
| Specialized asset management scheme | 56.99 | 54.40 |
| Publicly offered funds issued by securities dealers | 1,791.36 | 1,661.69 |
| Total | 2,337.81 | 2,165.68 |
Going forward, Orient Securities Asset Management will focus on the development strategy of dual-engine strategy driven by public and private funds. Through continuous improvement of product line layout, promotion of multi-dimensional investment and research capability building, optimization of capital structure and customer service capabilities, as well as such internal management mechanisms as continuous intensive cost reduction, enhancement of fintech empowerment, and strengthening the stable operation of compliance and risk control system. These efforts aim to boost operating performance, achieve steady growth in the Company's operations, and consolidate its industry competitiveness.
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(2) Fund management business
In the first half of 2025, “a package of financial policies to support stabilizing the market and expectations” was continuously rolled out, with medium- and long-term funds accelerating their entry into the market, supporting the stabilization and revitalization of the capital market. In terms of the industry, the Action Plan for Promoting the High-Quality Development of Public Funds (《推動公募基金高質量發展行動方案》) was implemented, drawing a clear blueprint for the future of the publicly offered funds industry. According to statistics from the Asset Management Association of China, as at the end of June 2025, the net asset value of publicly offered funds managed by publicly offered funds management institutions amounted to RMB34.39 trillion, representing an increase of 4.75% over the end of last year.
In accordance with the requirements of the “Year of Reform and Progress” in 2025, China Universal adheres to the business philosophy of “all for the long term” and the value of “customer first”, and steadily moves towards the goal of building a first-class investment institution. On the basis of regularized investment, it continues to build a people-oriented multi-strategy investment system, strengthens the focus on performance benchmarks, and effectively improves investor returns. Meanwhile, China Universal actively increased the scale and proportion of equity investments, continuously improved its active equity fund product line, and launched the first batch of new-type floating fee funds; it kept improving equity index product lines such as the STAR Market series, Stock Connect series, and free cash flow series, and actively supported the development of new productive forces. It continues to improve its customer service system, accurately matches customer needs, and provides good consultative companionship and services. It successfully issued two public REITs: China Universal Jiuzhoutong Pharmaceutical Warehousing and Logistics REIT (匯添富九州通醫藥倉儲物流REIT) is the first national pharmaceutical warehousing and logistics REIT, and China Universal Shanghai Real Estate
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Rental Housing REIT (匯添富上海地產租賃住房 REIT) is the first national REITs project involving the conversion of commercial properties to guaranteed rental housing, fully demonstrating the functional positioning of publicly offered funds in serving people's livelihood security and the real economy. China Universal Shanghai and Shenzhen 300ETF entered the Brazilian market, becoming the first ETF connectivity product between SSE and Brazil's B3 (Brasil Bolsa Balcão) (巴西證券期貨交易所) and marking China Universal's new chapter of internationalization and strengthening global strategic cooperation. China Universal attaches great importance to digital finance development, continuously promotes the intelligent transformation and upgrading of business, took the lead in the industry to complete the private deployment of the DeepSeek series of open-source models, and successfully launched the "DeepSeek in Cash Treasure (DeepSeek in 現金寶)" service.
As at the end of the Reporting Period, the total assets under management of China Universal amounted to approximately RMB1.26 trillion, representing an increase of over 8.7% from the beginning of the year, of which, the scale of publicly offered funds excluding monetary funds reached approximately RMB550 billion, representing an increase of approximately 11% from the beginning of the year. During the Reporting Period, China Universal launched a total of 22 publicly offered funds with an aggregate issuance scale of approximately RMB11.2 billion, continuously enriching its product and strategy matrix.
In the future, China Universal will resolutely adhere to the guidance of the Action Plan for Promoting High-Quality Development of Public Funds《(推動公募基金高質量發展行動方案》，expedite the development of a first-class investment institution, strengthen core investment research capabilities, and enhance investor service capabilities. Taking the productization of products and services as a key focus, it will comprehensively improve the professional level of asset management and solution design, conduct in-depth analysis of changes in the market environment and customer needs, respond quickly to connect with services, and upgrade digitalization and AI capabilities. It will also strive to enhance organizational and team management, and accelerate the achievement of strategic goals. Moreover, it will stay true to its founding mission, live up to trust, and substantially enhance investor returns, taking concrete actions to advance high-quality development.
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(3) Private equity investment fund
In 2025, China's capital market deepens fundamental institutional reforms, accelerating the establishment of a multi-tiered market system to support technological innovation and a policy framework encouraging sustained investment of long-term funds. A series of favorable policies are implemented, including expanding the science and technology innovation bonds, promoting the entry of insurance capital into the market, and issuing new rules on mergers and acquisitions. These measures, coupled with the recovery of the IPO market and the active performance of the M&A market, will inject new momentum into the primary market.
Orient Securities Capital Investment focused its efforts on two key areas, technological innovation and mergers and acquisitions. On the fundraising side, the Company emphasized the strategic significance of fund-of-funds, collaborated with outstanding managers, and expanded the scale of its fund-of-funds business in an orderly manner. It also strongly supported its business teams in establishing merger and acquisition funds. On the investment side, the Company conducted in-depth analysis of industry dynamics, focused on high-quality sectors such as semiconductors, robotics and AI, new energy, military and aerospace, and biopharmaceuticals, and made precise investments in the upstream and downstream of the industrial chain. Additionally, it integrated resources from business teams, quality control, and risk management to strengthen post-investment management, ensuring timely and effective risk warnings. By adhering to the principle of "retreating to advance", it actively explored diversified exit strategies, and resolutely liquidated risky assets.
As at the end of the Reporting Period, Orient Securities Capital Investment managed 58 funds with a total scale of RMB18.910 billion, with 4 new funds added, involving a new scale of RMB1.180 billion. There were 128 projects under investment, with an investment amount of RMB7.029 billion, including 5 listed projects. During the Reporting Period, IPO applications of 2 target companies were approved, while IPO applications of other 3 target companies were submitted and accepted for review.
In the future, Orient Securities Capital Investment will actively respond to the national call, closely focus on the two main themes of scientific and technological innovation and mergers and acquisitions by guiding private equity investment funds to invest in the field of scientific and technological innovation. This will help create a favorable financial ecosystem that supports scientific and technological innovation, which supports science and technology enterprises to grow and thrive.
Section III Report of the Board
3. Futures business
The Company mainly engages in futures business through Orient Futures, a wholly-owned subsidiary of the Company.
In the first half of 2025, international uncertainty intensified, and the futures industry showed a significant divergence. On a unilateral basis, the cumulative trading volume of China's futures market has reached 4.076 billion lots and the trading volume has amounted to RMB339.73 trillion, representing a year-on-year increase of 17.82% and 20.68%, respectively. From a sector perspective, capital flows highlighted risk-averse demand, with the precious metals sector leading gains. The year-on-year growth rate of gold futures delivery amounts surged to 529.41%. The China Financial Futures Exchange accounted for 33.13% of total market turnover, with the primary growth drivers being 30-year government bond futures, the CSI 1000 index futures, and the Shanghai-Shenzhen 300 index futures. Futures companies are facing multiple challenges, including stricter regulation, intensified competition, reduced exchange rebates, and declining interest income.
Orient Futures actively responded to challenges in the external environment by implementing multiple measures to promote business development and management optimization. In terms of business, Orient Futures steadily expanded its brokerage business, risk management services, and digital transformation. First, it improved its customer structure, consolidated and expanded its brokerage business. By continuously introducing different types of customer groups, such as financial institutions, industrial customers, and high-net-worth individuals, the Company expanded its business scale and consolidated its operating foundation, thereby achieving effective growth in market share. Second, it accelerated its overseas expansion to provide global clients with personalized risk hedging and investment solutions, thereby enhancing its global market competitiveness. Third, it advanced financial technology-enabled industrial services through four major financial technology innovation platforms, including Finoview Intelligent Investment Research Platform (繁微智能投研平台), Orient Swift Trans-Action Platform High-speed Trading System (東方雨燕極速交易系統), CommoSmart Commodity Trade Management Platform (大宗精靈商品貿易平台), and Zhida All-Scenario APP (智達全場景應用程序). These initiatives aimed to continuously improve overall business efficiency and service quality while enhancing client satisfaction. In terms of internal management, Orient Futures has strengthened risk and compliance management, optimized operational processes, reduced operational costs, and improved resource utilization. Additionally, Orient Futures actively responded to national calls by supporting agricultural development through public welfare initiatives and deeply engaging in the national rural revitalization strategy. As at the end of June, Orient Futures ranked third in the industry in terms of market share of agency trading volume and customer equity scale, and ranked fourth in the industry in terms of net profit.
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Orient Futures will continue to adhere to its principles of prudent management and innovative development, striving to become a first-class integrated derivatives service provider with whole life-cycle risk management capabilities, research and technology-driven intelligent service capabilities, and international resource integration and coordination capabilities.
(ii) Investment banking and alternative investments
1. Investment banking
The Company mainly engages in investment banking business through the investment banking management committee and its first-tier departments, as well as the fixed income business department.
(1) Equity financing business
During the first half of 2025, the A-share market demonstrated renewed vitality amid deepening policy reforms. With the implementation of the Implementation Plan for Promoting the Entry of Long- and Medium-term Capital into the Market («關於推動中長期資金入市工作的實施方案»), coupled with synergistic advancement of the STAR Market's “1+6” policy package and the ChiNext’s third set of listing standards, the multi-tiered capital market has undergone a comprehensive upgrade in its service ecosystem for technology and innovation-oriented enterprises. The total issuance volume in the A-share primary market reached RMB762.836 billion, representing a year-on-year increase of 403%. Market dynamics continued to optimize under the deepening reform policies.
During the Reporting Period, the Company completed 10 equity financing transactions. According to Wind, our issuance volume ranked sixth in the industry. Among these transactions, the Company acted as a lead underwriter of 1 IPO project and 9 follow-on offerings. Guided by the commitment to advancing high-quality financial development, the Company continued to refine its industrial investment banking model and strengthen its ability to serve high-caliber technology and innovation enterprises. During the Reporting Period, its client base spanned multiple sectors, including capital-market services, advanced manufacturing, TMT and new materials.
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In the future, the Company will focus on two strategic areas – technology and energy, and by leveraging policy guidance and industry trends, will further strengthen its differentiated competitive edge. In hard technology, the Company will prioritise key industries such as next-generation information technology, biopharmaceuticals, advanced manufacturing and new materials to deliver comprehensive financial solutions throughout the entire life cycle of technology and innovation enterprises. In the energy sector, the Company, building on the industrial ecosystem and resources of Shenergy Group, will capitalise on its competitive advantages and strive to establish itself as a distinctive brand in energy investment banking.
(2) Bond financing business
During the Reporting Period, the total issuance scale of all types of bonds in the entire market amounted to RMB44.68 trillion, representing a year-on-year increase of 17%. Among them, the issuance scale of interest rate bonds was RMB16.97 trillion, representing a year-on-year increase of 38%, and the issuance scale of credit bonds was RMB27.72 trillion, representing a year-on-year increase of 6%. The policy on municipal investment bonds continued to tighten with the issuance scale decreasing by 13% year-on-year, and the net financing amount was negative with an expanding decline. The policy support for industrial bonds has increased. The People's Bank of China and the China Securities Regulatory Commission jointly issued policies to encourage the issuance of technology innovation bonds, and the proportion of industrial bond financing has continued to rise.
According to Wind data statistics, the total underwriting size of the Company's bond underwriting business in the first half of the year was RMB277.948 billion, representing a year-on-year increase of 28.00%, ranking 9th in the market.
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In terms of interest rate bonds, the Company continued to expand its underwriting business and the total underwriting volume rose 48.08% year-on-year. The business ranking improved and the Company ranked first among securities dealers in the underwriting of book-entry interest-bearing treasury bonds and financial bonds issued by China Development Bank (CDB) and Agricultural Development Bank of China (ADBC). As one of the only two Class A underwriters of book-entry interest-bearing treasury bonds among securities firms, the Company underwrote more than RMB170 billion of government bonds during the Reporting Period, of which over 18% was special government bonds, directly supporting China's "Major National Strategies and Security Capability in Key Areas" and "Large-scale Equipment Renewal and Trade-in of Consumer Goods" initiatives.
In terms of bonds for science and technology innovation, the Company leveraged its own advantages and actively participated in and underwrote bonds for science and technology innovation issued by multiple enterprises. Among them, the Company helped CDB successfully issue its first bonds for science and technology innovation, ranking among the top in underwriting volume among securities firms. It has taken practical actions to increase support for the capital demand for sci-tech innovation purposes and contributed to the continuous reduction of financing costs.
In addition, the Company vigorously explored other special bond varieties, and underwrote and issued multiple green bonds, corporate bonds for rural revitalisation, small and micro-enterprise financial bonds, corporate bonds for small and micro-enterprises, financial bonds for Agriculture, Rural Areas and Farmers and sustainable linked bonds. These issuances provided dedicated funding for major projects in technology innovation, green carbon neutrality initiatives, and rural revitalisation, thereby supporting the high-quality development of the real economy. Adhering to a prudent and compliant operating philosophy with rigorous risk control, the Company maintained a zero-default track record across all bond projects.
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The table below sets forth the breakdown of bonds underwritten by the Company as the lead underwriter:
| (in RMB100 million) | January – June 2025 | January – June 2024 |
|---|---|---|
| Corporate debentures: | ||
| Number of underwriting as the lead underwriter | 195 | 172 |
| Amount underwritten as the lead underwriter | 603.40 | 577.69 |
| Corporate bonds: | ||
| Number of underwriting as the lead underwriter | 0 | 2 |
| Amount underwritten as the lead underwriter | 0 | 3.77 |
| Financial bonds: | ||
| Number of underwriting as the lead underwriter | 50 | 23 |
| Amount underwritten as the lead underwriter | 482.76 | 221.12 |
| Asset-backed securities: | ||
| Number of underwriting as the lead underwriter | 24 | 45 |
| Amount underwritten as the lead underwriter | 50.67 | 61.28 |
| Debt financing instruments of non-financial enterprises: | ||
| Number of underwriting as the lead underwriter | 97 | 91 |
| Amount underwritten as the lead underwriter | 241.97 | 238.80 |
| Local government bonds: | ||
| Number of underwriting as the lead underwriter | 91 | 77 |
| Amount underwritten as the lead underwriter | 128.30 | 171.29 |
| Total: | ||
| Number of underwriting as the lead underwriter | 457 | 410 |
| Amount underwritten as the lead underwriter | 1,507.09 | 1,273.95 |
In the future, the Company will continue to adhere to the three linkage service model: "investment + investment banking + investment research", deeply tapping the diversified financing needs of customers, providing clients with full-chain, full-cycle comprehensive financial services, improving the quality and efficiency of customer service and ability of execution of innovations. At the same time, the Company remains committed to cultivating relationships with high-quality regional clients while expanding coverage in key national strategic zones, thereby driving steady growth in both business scale and competitive positioning.
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(3) Financial advisory services
Since the introduction of policies such as the "Eight Measures for Sci-Tech Innovation" (科創八條) and "Six Measures for M&A" (併購六條) to encourage M&A and restructuring, the M&A market has continued to recover, showing active trading. In the first half of 2025, the number of major asset restructuring plans and draft proposals initially disclosed in the A-share market exceeded 80 and 60, respectively, approximately 2-3 times the figure recorded during the same period last year.
The Company actively responded to the policy call by placing strong importance on M&A and restructuring-related financial advisory services. Multiple measures have been implemented to expand business scale and enhance market positioning, including but not limited to strengthening brand development and establishing benchmark projects; focusing on sci-tech innovation-driven M&As, with a strategic emphasis on sectors representing new quality productive forces; continuing to deepen expertise in industrial M&As and leveraging its traditional strengths in cross-border M&As. The Company has demonstrated strong execution capabilities in large-scale M&A transactions, most notably serving as the independent financial advisor to Guotai Junan to merge with Haitong Securities, which was the largest A + H bilateral market absorption merger in the history of China's capital market, and the largest M&A project in the international investment banking sector since 2008. In terms of technological innovation M&A, the Company has successfully facilitated or completed multiple high-profile deals, including advising Sanyou Medical (a listed company on the STAR Market) on its acquisition of Shuimu Tianpeng, assisting RoboTouch (a ChiNext-listed firm) in its acquisition of Germany's ficonTEC, and guiding Ferrotec (another ChiNext company) in its acquisition of Fulehua. The Company is also actively advancing several industrial M&A projects involving clients such as Huakang Pharmaceutical and Delphi Automotive. Furthermore, the Company also continues to support multiple listed companies in their transformation through M&As focused on new quality productive forces and cross-border transactions.
The Company will remain focusing on industrial M&A and cross-border M&A, and participating in M&A transactions with significant scale and market influence. In addition, the Company will also actively develop innovative business opportunities such as the transfer of control rights of listed companies and financial advisory services for bankruptcy reorganization, through which it will give priority to obtaining business opportunities for the future capital operation of listed companies; it will pay attention to the internationalization needs of its high quality listed company clients, and provide comprehensive financial services through domestic and overseas linkage to meet the clients' needs for financing in overseas markets and global strategic layout.
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2. Alternative investments
The Company primarily engages in alternative investments business through Orient Securities Innovation, a wholly-owned subsidiary of the Company.
During the Reporting Period, the primary market maintained its cautious stance, while the secondary market stabilized after experiencing phased volatility. The special assets market continued to expand, leading to a narrowing of the excess returns across the industry.
Orient Securities Innovation conducted in-depth research and analysis of macroeconomic conditions, industry trends, and risk-return characteristics of various assets, dynamically optimizing asset allocation across different maturities, risk levels and return objectives to continuously enhance return stability. In the equity investment business, through its strategic focus on "investing in early, small-sized and hard-core technology enterprises", it injected new momentum into domestic industrial upgrading and strengthening supply chain resilience. The company consistently explored investment opportunities with clear exit paths, including strategic placements and private placements of listed companies. It diligently implemented post-investment management for existing projects, focusing on facilitating exits through methods such as transfers, mergers and acquisitions, and share repurchases by major shareholders. As at the end of the Reporting Period, Orient Securities Innovation had 105 existing equity investment projects with an aggregate balance of RMB4.390 billion, and had participated in 10 co-investment projects on the STAR Market with a total investment of RMB549 million. In the special assets investment business, the company pursued progress amid changes, continuously exploring innovative business opportunities while deepening professional judgment capabilities. It strengthened active project management and value enhancement capabilities, improved digitalization of post-investment management, and expanded diversified cooperation networks and exit channels. Adopting a prudent allocation approach during market downturns, it captured structural investment opportunities. As at the end of the Reporting Period, Orient Securities Innovation had 31 existing special asset investment projects with an aggregate balance of RMB2.271 billion.
Looking ahead, Orient Securities Innovation will focus on the principle of "professional specialization, differentiated breakthroughs, and prudent operations". It will deepen its engagement in equity investment business and special assets investment business, enhance the incremental contribution from innovative businesses, strengthen risk management, and achieve high-quality development.
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(iii) Institutional and sales trading
1. Proprietary investment
The Company conducts both equity and non-equity proprietary investment businesses primarily through the securities investment business department and the fixed income business department.
In the first half of 2025, the market experienced significant volatility due to the impact of tariff wars, showing an overall slight increase. The CSI 300 Index rose by 0.03%, the SSE Composite Index increased by 2.76%, the SZSE Component Index grew by 0.48%, and the ChiNext Index climbed by 0.53%. In the bond market, yields initially rose before declining, with overall minor fluctuations. The yield on 10-year treasury bonds decreased by 3bp to approximately 1.65%, while the yield on 10-year CDB bond fell by 4bp to around 1.69%. The total price index of ChinaBond dropped by 0.65%, and the comprehensive price index of ChinaBond declined by 0.14%.
In terms of equity proprietary trading, the Company strengthened its layout of "multi-asset, multi-strategy and all-weather" investment and adhered to the concept of "prosperity value". Through effective dynamic asset allocation and refined investment, it effectively controlled drawdowns and achieved relatively strong performance contributions overall. Specifically, the high-dividend strategy focused on high-quality individual stocks with solid fundamentals, dynamically optimizing the portfolio structure in response to changes in prosperity levels; the trading investment strategy was proactive and effective, delivering favorable absolute returns with low volatility; continuous optimization of quantitative models was pursued, with innovative deployment of market-neutral multi-strategies; the swap facility dedicated accounts maintained stable operations.
In terms of proprietary non-equity, the fixed income investments maintained stable growth in scale while continuing to optimize the portfolio structure. During the Reporting Period, the Company's interest rate swap trading volume increased by 221.32% year-on-year, and non-equity ETF trading volume grew by 158% year-on-year. The Company ranked among the top securities firms in terms of spot securities trading volume in the interbank market, total trading volume of bonds and the interest rate swap trading volume. The proprietary operations of bulk commodity business effectively enhanced returns through optimized asset allocation across low-, medium- and high-risk strategies; carbon finance innovation businesses were successively implemented, boosting trading activity in the carbon market with transaction volume increasing nearly fivefold year-on-year; while the proprietary foreign exchange trading continuously diversified its strategies by reducing directional exposure and achieving steady income growth. Over the years, the Company has independently developed the Super Investment Management Platform (SIMP), which has achieved full-asset strategy pricing and automated trading, ensuring timely, efficient, secure and stable transaction processes. Through the application of AI and other technologies, it has significantly improved investment and trading efficiency.
Section III Report of the Board
In the future, for proprietary equity business, the Company will continue to strengthen research on market trends and various investment assets, and actively seek to increase trading investment assets when market conditions are expected to improve. Centered on the layout of "multi-asset, multi-strategy and all-weather" investment and guided by the "prosperity value" philosophy, it will expand weakly correlated strategies to diversify absolute return sources and achieve steady sustainable returns. For proprietary non-equity investments, it will further promote refined investment operations, adhere to non-directional transformation by shifting from traditional allocation strategies to more flexible and diversified trading strategies, with a focus on "fixed income + investment opportunities"; enhance credit risk prevention and control, incorporate ESG into the investment research framework, and emphasize green bond investments; intensify efforts to advance the SIMP system development and explore applications of AI large language models in proprietary investments.
2. Client-oriented business
The Company mainly conducts client-oriented business through the financial derivatives department and the fixed income business department.
During the Reporting Period, client-oriented business continued to grow amid industry standardization and intensifying competition. Firstly, the regulatory policies remained steady growth with a healthy secondary market creating favorable operating conditions. Secondly, financial institutions generally increased their investment in client-oriented business, accelerating product innovation and intensifying the market competition. Meanwhile, high-quality economic and market development has catalyzed new business directions while clients' demand for various financial products is also rising rapidly, providing new opportunities for the development of client-oriented business.
In respect of OTC derivatives, the Company enhanced risk controls, reduced the proportion of volatile businesses so as to improve the stability of returns. Meanwhile, through in-depth client needs analysis and strengthened post-trade management, the Company drove profit growth. Optimized group synergy and business models and brokerage business launched in collaboration with the wealth management committee, effectively achieved premium resource integration and significantly increased business revenue. Specifically, in terms of the OTC options business, it significantly reduced the Greeks exposure and tail risks, with a significant increase in the proportion of low-risk transactions and the transaction volume reaching RMB5.963 billion during the Reporting Period; as for the total return swaps business, it focused on low-risk business models, with index enhancement products maintaining stable profitability. During the Reporting Period, the transaction volume reached RMB21.174 billion, representing a year-on-year increase of 22.33%.
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In terms of the FICC agency business, client-oriented revenue and its proportion were further enhanced. During the Reporting Period, the equity-bond-commodity strategy index business demonstrated rapid growth. Breakthroughs were made in customized service models for financial institutions. Foreign exchange operations remained stable while continuously expanding business scenarios, diversifying trading strategies, and broadening counterparty networks, driving steady profit growth. Investment advisory business recorded steady growth both in terms of revenue and scale, with performance in line with customer needs.
In the future, the Company will continue to enhance the efficiency of its OTC derivatives business, deepen analysis for institutional customers' needs, and strengthen cross-departmental collaboration mechanisms to increase collaborative revenue. For OTC options, it will strictly control overall business scale and risk exposure while enriching product lines and cultivating new growth drivers. Total return swaps business will develop more diversified product systems, improve the diversity and effectiveness of monitoring metrics, and enhance operational efficiency. FICC customer services will continue expanding business scope and product varieties, collaborating with branch offices and overseas subsidiaries to extend service coverage, so as to advance the development of client-oriented services.
3. Market-making business
The Company conducts equity and non-equity market-making business mainly through the securities investment business department, the financial derivatives business department, and the fixed income business department.
During the Reporting Period, the People's Bank of China and the CSRC jointly announced matters on supporting the issue of sci-tech innovation bonds and launched the "Technology Board" in the bond market, introducing measures to enrich technology innovation bond product systems and improve supporting mechanisms. Bond ETFs entered a significant growth phase, with market size approaching RMB400 billion as at the end of the Reporting Period. Securities companies actively participated in ETF ecosystem development, driving rapid demand for bond ETF market-making services. The equity ETF segment maintained strong momentum, creating favorable conditions for scaling equity market-making business.
Section III Report of the Board
The Company was engaged in stock market-making business and provided market-making services to SMEs listed on the STAR Market, the NEEQ, and the Beijing Stock Exchange. During the Reporting Period, for the STAR Market, the Company refined single-stock market-making strategies and risk management, providing services for 10 stocks and earning a Category A rating as a market maker for the STAR Market from the Shanghai Stock Exchange. For the Beijing Stock Exchange projects, the Company maintained stable operations with rigorous selection of high-quality targets for market making and strategic placements, achieving returns that significantly outperformed the BSE 50 Index.
The Company is a full-licensed main market-maker for equity options, ranking among the top in the industry in terms of trading volume with all varieties basically remained AA ratings, and maintaining the level of the first echelon in the industry. The number of funds for which the Company conducts market-making has reached over 310, with an increase of over 29% as compared with that of the end of last year, and most of its varieties remained AA/A ratings on the SSE, while its collaboration programs on A500ETF significantly enhanced capital intermediary business. In terms of market-making for commodity futures and commodity options, the Company achieved outstanding performance in some of its varieties and actively expanded the width and depth of its commodity asset market-making business. The Company achieved sound development in its market-making business and adhered to independent development of core system through continuous full-chain optimization, hardware upgrades, and strategy iteration. The business sustained a robust profit model positively correlated with market volume and volatility, achieving substantial year-on-year growth in its market-making business during the Reporting Period.
The Company has maintained a leading position in bond market-making business. During the Reporting Period, the market-making of financial bonds of the three major policy banks continuously remained among the top two in the market; In the Shanghai Stock Exchange, the market-making of interest rate bonds and corporate bonds ranked first and fourth respectively in the whole market, and SZSE interest rate bonds and credit bonds were both rated Class A ratings. The trading volume of quotations to overseas clients through Bond Connect and Global Connect ranked among the top in the market, and that of Swap Connect achieved a year-on-year increase of 184%. To seize opportunities in the ETF market, the Company intensified its ETF market-making efforts. It provided market-making services for 17 bond ETFs and 1 gold ETF during the Reporting Period, representing an increase of 10 compared to that of last year, with trading volume rising 158% year-on-year; the ETFs under its market-making services consistently received ratings above Class A every month. Furthermore, in response to the construction of the "Sci-Tech Innovation Board" for the bond market, the Company offered a package of services for sci-tech innovation bonds. It provided market-making quotes for 174 sci-tech innovation bonds during the Reporting Period, nearly double the number from the same period last year, becoming
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the only market maker in the industry that has continuously provided market making and quotes for all three CDB Sci-Tech Innovation Bonds since their listing. The Company also took the lead in launching the "Orient Securities Yangtze River Delta Sci-Tech Innovation Bond Basket (東方證券長三角地區科創債籃子)" and the "Orient Securities CDB Sci-Tech Innovation Bond Basket (東方證券國開科創債籃子)" to enhance the liquidity of sci-tech innovation bonds through various means, fostering deep integration of technology and finance, and effectively supporting high-quality development in the technology innovation sector.
In the future, the Company will enhance its capabilities of investment research and increase the coverage of companies on the STAR Market and the Beijing Stock Exchange, as well as deepen research into market making strategies. The Company will enhance the advantages of equity option market-making business, increase the investment in system and development resources, seize the market opportunities to rapidly enhance the industry influence of its product assets, and prepare for cross-border assets business while promoting its fund market-making business into the top tier. Bond market-making will be guided by client demand, empowered by technology, to sustain comprehensive industry leadership.
4. Research services
The Company primarily provides securities research and other services through the securities research institute.
In the first half of 2025, the Action Plan for Promoting High-Quality Development of Public Funds (《推動公募基金高質量發展行動方案》) was officially issued, outlining a comprehensive path for reform and development in the public fund industry, promoting a shift from scale-focused to return-focused development, which will have a far-reaching impact on the entire industry ecosystem. As part of this, the securities research business urgently requires greater research depth, enhanced service intensity, and broader innovation to effectively navigate the changing landscape.
During the Reporting Period, the securities research institute significantly improved its research quality and capabilities by implementing a tripartite approach focusing on team building, research system construction, and research planning management. The Company actively strengthened research planning capabilities, establishing a securities research framework guided by macroeconomics, centered on strategy, and grounded in industry and company analysis, striving to deepen insights into financial markets and contribute to capital market development. Concurrently, the Company enhanced client research services and research compliance controls, improving the daily operational efficiency of the institute.
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The securities research institute is committed to strengthening internal and external services. Internally, the Company empowers investment banking business with industry research, institutional business with securities research, and wealth management business with wealth research. On the external front, the Company actively expanded its client base beyond public funds to include diverse institutional clients such as banks, insurance companies, and private funds.
During the Reporting Period, the Company published 832 research reports, and provided 9,548 online and offline research roadshows for institutional customers. The Company achieved a revenue of RMB128 million from public offering commissions (including special accounts, social security, and annuity seats), with a trading volume of publicly offered funds accounting for 2.26%.
In the future, the securities research institute will develop into a comprehensive research institute with equal emphasis on three major sectors, being industrial think tank research, industry securities research, and global wealth research, instead of the previous model of relying solely on securities research, to provide more comprehensive services to various clients and internal departments. Meanwhile, the Company will continue to strengthen research in green finance and technological innovation to serve national strategic initiatives.
5. Custody business
The Company conducts its custody business primarily through its custodian business department.
During the Reporting Period, the asset under custody of the industry continued to grow, while fund management fees and custody fees further declined. The number of small and medium-sized private funds being liquidated increased significantly amid fierce market competition, raising the operational requirements for custodians. Custodian institutions accelerated their expansion into value-added areas such as intelligent operations and data services, further enhancing their capabilities in intelligent and digital operations.
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The Company has continuously improved its process systems to faithfully fulfill its custodian duties and effectively safeguard the legitimate rights and interests of investors. By deepening internal collaboration mechanisms within the group, strengthening business empowerment for branch institutions, and establishing a categorized and tiered service system, the Company has optimized front-middle-back office service chains, enhanced both standardized and customized service capabilities, and consistently improved customer satisfaction. Through digitalization, the Company has reinforced risk control measures and refined a grid-based risk prevention system. As at the end of the Reporting Period, the scale of securities custody and outsourcing services increased by 8% compared to the beginning of the year, demonstrating steady and positive business development.
Looking ahead, the Company will intensify its focus on client needs, enhance group-wide collaboration, and proactively build a business ecosystem to deliver services with distinctive Eastern characteristics. We will accelerate the expansion of our ETF custody business, closely aligning with market dynamics and investor demand to inject new vitality into business growth. Concurrently, we will rigorously strengthen our compliance and risk control framework, expedite the development of a digital custody system, and continuously elevate the digital capabilities and operational efficiency of our custody services.
(iv) International and other businesses
The Company conducts international business mainly through its wholly-owned subsidiaries, Orient Finance Holdings, Orient Securities International and their subsidiaries, as well as the Singapore subsidiary of Orient Futures.
During the Reporting Period, the Hong Kong economy overall demonstrated signs of recovery, with notable improvements in market activity. In the first half of the year, the Hang Seng Index rose by 20%, while the China USD Bond Aggregate Index and Investment Grade Index gained 3.9% and 3.7%, respectively. However, the international environment remains complex and challenging, with geopolitical conflicts continuing to escalate and competition among major powers becoming more intense. In particular, fluctuations in tariff policies in April caused severe turmoil in capital markets, adding uncertainty to the recovery process.
As the Company's international business platform, Orient Securities International has established various wholly-owned subsidiaries licensed by the SFC to make a comprehensive layout in businesses including securities and futures brokerage, asset management, investment banking, and financial markets. During the Reporting Period, its Hong Kong subsidiaries overall demonstrated a positive trend of "steady progress and improvements in both quality and efficiency". The intermediary business made comprehensive progress,
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becoming a key driver of business growth, and achieved continuous optimization and improvement in its profit structure. Among which, the brokerage business accelerated wealth management transformation by capitalizing on the rising trend in Hong Kong's primary and secondary markets, improving customer quality and base, and actively exploring high-net-worth clients, as well as bond, family office, and trust clients. Its custodial client assets grew 25% year-to-date and Hong Kong stock trading volume doubled year-on-year. The asset management business adopted a client-oriented approach, achieving a steady growth in scale of 14% and obtained approval from the SFC to provide virtual asset advisory services to professional investors under its existing Type 4 license. The investment banking business demonstrated remarkable results from its integrated cross-border operating model, completing the underwriting of 45 bond projects with total underwriting amount increasing by 2 times year-on-year. In equity capital markets, the Company completed the underwriting for the Hong Kong IPO listing of Auntea Jenny, contributing to a surge of 4.5 times year-on-year in our total underwriting amount. The proprietary investment business in financial markets has reinforced its investment model focusing on configuration, maintaining a portfolio structure with high credit ratings and achieving favorable investment returns. Sales transactions are mainly driven by client needs, with the number of clients continuing to grow rapidly and the types and scale of financial services and products expanding in an orderly manner.
The Singapore subsidiary of Orient Futures has been actively advancing its international expansion, systematically developing brokerage operations across Southeast Asia, South America, and select European regions to steadily broaden its business footprint. Despite facing highly volatile market conditions, the subsidiary has maintained overall business stability through operational innovation and flexible management strategies. The Company has launched an overseas version of its Finoview intelligent investment research platform, providing global clients with comprehensive data integration and in-depth research support for international products. Simultaneously, it has strengthened its cross-border service capabilities, enhancing its competitive edge in offering clients integrated domestic and international business solutions.
Looking ahead, the Company will advance its internationalization strategy in a systematic and pragmatic manner. Orient Securities International remains committed to building core competencies and enhancing synergistic efficiencies, adhering to strict compliance standards, strengthening client base, enhancing business capabilities, and promoting in-depth integration of domestic and overseas businesses, in order to maintain good profitability and promote the quality development of international businesses. Meanwhile, the Singapore subsidiary of Orient Futures will concentrate on three strategic pillars, namely, agile adaptation to market changes, technology-driven efficiency enhancement, and rigorous risk segregation. By expanding licensing capabilities and global footprint, the subsidiary aims to deliver more comprehensive multi-asset financial products and services to clients worldwide.
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Section III Report of the Board
III. ANALYSIS ON CORE COMPETITIVENESS DURING THE REPORTING PERIOD
Excellent party building culture. The Company's party committee has always adhered to the concept of "party building and corporate culture as productivity", and has led and safeguarded high-quality development with high-quality party building. At present, the Company's party committee is the only Party Committee of a securities company in China that has been awarded the title of National Advanced Grassroots Party Organization by the Organization Department of the CPC Central Committee, which is a profound source of the Company's adherence to the political nature of the work of the financial industry and the people-oriented nature. The Company was awarded honorary titles such as the Flag Party Organization (紅旗黨組織) of the Shanghai State-owned Assets Supervision and Administration Commission, the Shanghai State-owned Enterprise Party Building Brands (上海國企黨建品牌) and the first batch of innovative practice bases for grassroots party construction of the Shanghai State-owned Assets Supervision and Administration Commission System (首批市國資委系統基層黨建創新實踐基地).
Unique shareholder resources. Shenergy Group, the largest Shareholder of the Company, has given strong and unwavering support to the Company. The background of the shareholders in energy industry strongly enhances the Company's political position and visionary thinking in serving the real economy, guarding the national energy security and financial security, and implementing the "dual-carbon" strategy. This is a natural advantage for the Company to specialize in "energy investment banking and green investment banking". Currently, the Company has issued a green finance action plan, and established a Green Finance Research Institute for promoting the deep integration of energy and finance, and further solidifying the foundation for the development of green finance.
Long-term brand strength. After years of cultivation, the Company has built a brand with a long-term advantage in areas including asset management, publicly offered funds, fixed income, and futures brokerage. The operating results of Orient Securities Asset Management rank high in the industry, and the "Dong Fang Hong (東方紅)" brand enjoys a good reputation in the market; China Universal has developed stable and top-class comprehensive capabilities and has ranked among the top in the industry in terms of size of active equity business. The Company's fixed-income business has delivered solid long-term results, and its interest rate bond underwriting, bond market-making and trading have always ranked among the top in the market, while its carbon finance business has developed innovatively; by strengthening the application of financial technology, Orient Futures maintains a competitive market share.
Professional talent team. The Company has consistently attached great importance to building a strong talent team and is firmly committed to the strategy of "strengthening the company through talents", and transformed talent, the "primary resource", into the "primary driving force" for high-quality development. The Company has strengthened the talent-related policies and supporting mechanisms, deepened the work chain of "attracting, cultivating, utilizing and retaining" talents, enhanced internal training and external recruitment, continuously introduced, cultivated, employed and retained key talents, leading talents and high-end talents, and built a comprehensive and excellent team of financial cadres and talents with "purity, professionalism and combat effectiveness", so as to provide solid talent support for high-quality development.
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Effective compliance and risk control. The Company has always adhered to the operating concept of "compliance as the foundation, risk control as the core", with a steady compliance and risk control culture as the core, sound systems as the basis and professional management tools as the support. Thus, a closed-loop compliance and risk management system of "culture – people – systems – tools" has been formed. Our compliance and risk management work has been sound and effective, and no significant illegal or non-compliance incidents occurred during the Reporting Period, with risk control indicators remaining at a relatively safe level. We have received the classification evaluation of Class A securities company for 16 consecutive years (AA rating of Class A for 4 consecutive years) and been included in the "White List" of securities companies.
IV. PRINCIPAL OPERATIONS DURING THE REPORTING PERIOD
As at the end of the Reporting Period, total assets of the Company amounted to RMB437.358 billion, representing an increase of 4.70% from the end of last year, equity attributable to shareholders of the Company amounted to RMB84.832 billion, representing an increase of 4.22% from the end of last year, and net capital of the Parent Company amounted to RMB57.481 billion, representing an increase of 6.75% from the end of last year. During the Reporting Period, profit for the period attributable to shareholders of the Company amounted to RMB3.463 billion, representing an increase of 64.02% year-on-year, and revenue and other income amounted to RMB12.325 billion, representing an increase of 26.72% year-on-year. Among the revenue and other income: Wealth and asset management realized RMB5.052 billion, accounting for 37.28% of the total; investment banking and alternative investments realized RMB0.993 billion, accounting for 7.32% of the total; institutions and sales trading realized RMB5.055 billion, accounting for 37.31% of the total; international and other businesses realized RMB2.451 billion, accounting for 18.08% of the total. (Consolidation and offsetting factors were not considered when calculating segment revenue and other income, segment expenses and their proportions. The same approach is adopted below)
Unit: '000 Currency: RMB
| Business segment | Segment revenue and other income | Segment expenses | Principal businesses by segments | |||
|---|---|---|---|---|---|---|
| Profit margin (%) | Change in segment revenue and other income over the same period of last year (%) | Change in segment expenses over the same period of last year (%) | Change in profit margin over the same period of last year | |||
| Wealth and asset management | 5,052,448 | 4,338,381 | 15.68 | 15.53 | (1.46) | Increased by 10.90 percentage points |
| Investment banking and alternative investments | 992,555 | 401,781 | 65.30 | 33.42 | (37.54) | Increased by 50.61 percentage points |
Section III Report of the Board
Unit: '000 Currency: RMB
| Business segment | Segment revenue and other income | Segment expenses | Principal businesses by segments | |||
|---|---|---|---|---|---|---|
| Profit margin (%) | Change in segment revenue and other income over the same period of last year (%) | Change in segment expenses over the same period of last year (%) | Change in profit margin over the same period of last year | |||
| Institutions and sales trading | 5,055,255 | 2,225,288 | 55.98 | 29.89 | 7.85 | Increased by 9.00 percentage points |
| International and other businesses | 2,450,635 | 2,623,761 | 1.34 | (28.20) | 23.73 | Decreased by 35.65 percentage points |
(i) Major items in consolidated statement of profit or loss
1 Revenue, other income and gains
During the Reporting Period, the Group achieved revenue, other income and gains of RMB12.325 billion, representing an increase of RMB2.599 billion and an increase of 26.72% year-on-year. The change in revenue and other income was mainly due to year-on-year increases in investment gains on proprietary business revenue, fee income from brokerage and investment banking services, as well as a year-on-year decrease in expenses such as credit impairment losses.
Where,
Commission and fee income amounted to RMB5.129 billion, accounting for 41.62% and representing an increase of 14.94%, mainly due to increases in fee income from securities and futures brokerage business and underwriting fee income from investment banking business;
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Interest income amounted to RMB2.765 billion, accounting for 22.43% and representing a decrease of 0.40%, mainly due to decreases in interest income from proprietary bond investment, interest income from financial assets held under resale agreements, and interest income from interbank deposits;
Net investment gains amounted to RMB4.020 billion, accounting for 32.62% and representing an increase of 76.69%, mainly due to increase in net investment gains from holding and disposing of financial assets;
Other income and gains amounted to RMB0.410 billion, accounting for 3.33% and representing an increase of 93.85%, mainly due to increase in net foreign exchange gains.
Structures of the Group's revenue, other income and gains for the Reporting Period are set out below:
Unit: '000 Currency: RMB
| Item | From January to June 2025 | From January to June 2024 | Changes | |||
|---|---|---|---|---|---|---|
| Amount | Proportion (%) | Amount | Proportion (%) | Amount | Proportion (%) | |
| Commission and fee income | 5,129,012 | 41.62 | 4,462,488 | 45.88 | 666,524 | 14.94 |
| Interest income | 2,765,256 | 22.43 | 2,776,347 | 28.55 | (11,091) | -0.40 |
| Net investment gains | 4,020,355 | 32.62 | 2,275,382 | 23.40 | 1,744,973 | 76.69 |
| Other income and gains | 410,008 | 3.33 | 211,505 | 2.17 | 198,503 | 93.85 |
| Total revenue and other gains | 12,324,631 | 100.00 | 9,725,722 | 100.00 | 2,598,909 | 26.72 |
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2 Total expenses
During the Reporting Period, expenses of the Group amounted to RMB8.373 billion, representing an increase of RMB0.693 billion and an increase of 9.03% year-on-year, mainly due to:
Where,
Staff costs amounted to RMB2.477 billion, representing an increase of 31.90%, mainly due to the increase in staff costs that are fluctuated in line with business revenue;
Interest expenses amounted to RMB2.303 billion, representing an increase of 10.60%, mainly due to increases in interest expenses on financial assets sold under repurchase agreements issued and interest expenses on interbank lending;
Commission and fee expenses amounted to RMB2.243 billion, representing an increase of 13.20%, mainly due to increase in fees from securities and futures brokerage business;
Depreciation and amortization expenses amounted to RMB391 million, representing a decrease of 3.09%, mainly due to decrease in depreciation of property and equipment;
Other expenses, including operating costs and taxes and surcharges, totaled RMB962 million, representing an decrease of 5.99%, mainly due to decrease in business-related operating expenses;
Credit impairment losses amounted to RMB-4 million, mainly due to decrease in credit impairment losses related to collateralized stock repurchase business accrued during the period.
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The components of total expenses of the Group during the Reporting Period are set out as follows:
Unit: '000 Currency: RMB
| Item | From January to June 2025 | From January to June 2024 | Changes | |
|---|---|---|---|---|
| Amount | Proportion (%) | |||
| Staff costs | 2,477,036 | 1,877,911 | 599,125 | 31.90 |
| Interest expenses | 2,303,021 | 2,082,326 | 220,695 | 10.60 |
| Commission and fee expenses | 2,242,901 | 1,981,346 | 261,555 | 13.20 |
| Depreciation and amortization expenses | 391,226 | 403,693 | (12,467) | -3.09 |
| Other expenses | 961,873 | 1,023,106 | (61,233) | -5.99 |
| Credit impairment losses | (3,765) | 312,138 | (315,903) | -101.21 |
| Other impairment losses | 271 | (1,115) | 1,386 | N/A |
| Total | 8,372,563 | 7,679,405 | 693,158 | 9.03 |
3 Cash flows
During the Reporting Period, the Company recorded a net decrease of RMB0.047 billion in cash and cash equivalents. Details were as follows:
(1) Net cash used in operating activities amounted to RMB12.844 billion, which was mainly attributable to:
i. RMB27.664 billion of net cash outflow as a result of increase in financial assets at fair value through profit or loss and derivative financial assets;
ii. RMB1.318 billion of cash outflow as a result of payment of tax and interest;
iii. RMB1.204 billion of net cash outflow as a result of increase in trade receivables, other receivables and prepayments.
Section III Report of the Board
(2) Net cash from investment activities was RMB13.973 billion, which was mainly attributable to:
i. RMB11.649 billion of net cash inflow as a result of investment in and disposal of financial investments;
ii. RMB2.264 billion of net cash inflow as a result of dividends and interest received from investments.
(3) Net cash used in financing activities amounted to RMB1.176 billion, which was mainly attributable to:
i. RMB1.016 billion of net cash outflow as a result of interest paid on debt securities, short-term payables and borrowings;
ii. RMB0.843 billion of net cash outflow as a result of dividends paid to shareholders and holders of other equity instrument.
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(ii) Analysis on major items of consolidated statement of financial position
1 Analysis on major items of consolidated statement of financial position
As at the end of the Reporting Period, total assets of the Group amounted to RMB437.358 billion, total liabilities amounted to RMB352.523 billion, and total equity amounted to RMB84.835 billion.
The components of items of consolidated statement of financial position of the Group are set out below:
Unit: '000 Currency: RMB
| Item | As at the end of June 2025 | Proportion (%) | As at the end of 2024 | Proportion (%) | Changes | |
|---|---|---|---|---|---|---|
| Amount | Proportion (%) | |||||
| Total assets | 437,358,182 | 417,736,375 | 19,621,807 | 4.70 | ||
| Cash and bank balances | 96,696,398 | 22.11 | 103,093,101 | 24.68 | (6,396,703) | -6.20 |
| Clearing settlement funds | 19,845,992 | 4.54 | 15,177,207 | 3.63 | 4,668,785 | 30.76 |
| Deposits with exchanges and non-financial institutions | 31,263,450 | 7.15 | 27,654,365 | 6.62 | 3,609,085 | 13.05 |
| Derivative financial assets | 3,526,185 | 0.81 | 1,965,131 | 0.47 | 1,561,054 | 79.44 |
| Advances to customers | 27,765,643 | 6.35 | 28,047,525 | 6.71 | (281,882) | -1.01 |
| Account receivables | 1,824,289 | 0.42 | 973,364 | 0.23 | 850,925 | 87.42 |
| Financial assets held under resale agreements | 3,015,069 | 0.69 | 3,984,103 | 0.95 | (969,034) | -24.32 |
| Financial assets at fair value through profit or loss | 116,338,016 | 26.60 | 90,189,331 | 21.59 | 26,148,685 | 28.99 |
| Debt instruments at fair value through other comprehensive income | 94,429,620 | 21.59 | 110,519,911 | 26.46 | (16,090,291) | -14.56 |
| Equity instruments at fair value through other comprehensive income | 26,629,092 | 6.09 | 19,634,600 | 4.70 | 6,994,492 | 35.62 |
| Debt instruments measured at amortised cost | 1,575,495 | 0.36 | 1,586,905 | 0.38 | (11,410) | -0.72 |
| Deferred tax assets | 676,590 | 0.15 | 1,490,513 | 0.36 | (813,923) | -54.61 |
| Investments in associates | 6,060,012 | 1.39 | 6,128,123 | 1.47 | (68,111) | -1.11 |
| Right-of-use assets | 975,138 | 0.22 | 1,072,423 | 0.26 | (97,285) | -9.07 |
| Investment properties | 5,521 | 0.00 | 30,936 | 0.01 | (25,415) | -82.15 |
| Property and equipment | 2,572,291 | 0.59 | 2,602,196 | 0.62 | (29,905) | -1.15 |
| Other intangible assets | 240,895 | 0.06 | 272,393 | 0.07 | (31,498) | -11.56 |
| Goodwill | 32,135 | 0.01 | 32,135 | 0.01 | 0 | 0.00 |
| Other assets | 3,886,351 | 0.89 | 3,282,113 | 0.79 | 604,238 | 18.41 |
Section III Report of the Board
Unit: '000 Currency: RMB
| Item | As at the end of June 2022 | Proportion (%) | As at the end of 2024 | Proportion (%) | Changes | |
|---|---|---|---|---|---|---|
| Amount | Proportion (%) | |||||
| Total liabilities | 352,523,191 | 336,336,559 | 16,186,632 | 4.81 | ||
| Placements from banks and financial institutions | 29,327,263 | 8.32 | 39,194,625 | 11.65 | (9,867,362) | -25.18 |
| Short-term financing bills payable | 4,130,895 | 1.17 | 5,678,905 | 1.69 | (1,548,010) | -27.26 |
| Account payables to brokerage clients | 120,249,508 | 34.11 | 113,637,365 | 33.79 | 6,612,143 | 5.82 |
| Financial assets sold under repurchase agreements | 100,150,319 | 28.41 | 85,916,300 | 25.54 | 14,234,019 | 16.57 |
| Financial liabilities at fair value through profit or loss | 20,185,009 | 5.73 | 14,708,501 | 4.37 | 5,476,508 | 37.23 |
| Derivative financial liabilities | 3,803,744 | 1.08 | 1,092,582 | 0.32 | 2,711,162 | 248.14 |
| Contract liabilities | 48,569 | 0.01 | 44,877 | 0.01 | 3,692 | 8.23 |
| Income tax payable | 200,661 | 0.06 | 93,183 | 0.03 | 107,478 | 115.34 |
| Accrued staff costs | 2,734,220 | 0.78 | 2,370,667 | 0.70 | 363,553 | 15.34 |
| Borrowings | 1,748,727 | 0.50 | 1,549,417 | 0.46 | 199,310 | 12.86 |
| Lease liabilities | 959,876 | 0.27 | 1,058,950 | 0.31 | (99,074) | -9.36 |
| Bonds payable | 59,190,632 | 16.79 | 60,734,318 | 18.06 | (1,543,686) | -2.54 |
| Deferred tax liabilities | 44,241 | 0.01 | 218 | 0.00 | 44,023 | 20194.04 |
| Other liabilities | 9,749,527 | 2.77 | 10,256,651 | 3.05 | (507,124) | -4.94 |
| Total equity | 84,834,991 | 81,399,816 | 3,435,175 | 4.22 |
Note: Percentages for assets and liabilities refer to the share in total assets and the share in total liabilities respectively.
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2 Assets
As at the end of the Reporting Period, total assets of the Group amounted to RMB437.358 billion, representing an increase of RMB19.622 billion from the end of last year and an increase of 4.70%, mainly due to increases in financial asset at fair value through profit or loss and equity instruments at fair value through other comprehensive income. Among the assets of the Group, cash and bank balances, clearing settlement funds, and deposits with exchanges and financial institutions amounted to RMB147.806 billion, representing an increase of RMB1.881 billion from the end of last year and accounting for 33.80% of total assets; financial investments and derivative financial assets amounted to RMB242.498 billion, representing an increase of RMB18.603 billion from the end of last year and accounting for 55.45% of total assets; advances to customers, reverse repurchase agreements, and account receivables amounted to RMB32.605 billion, representing a decrease of RMB400 million from the end of last year and accounting for 7.45% of total assets; investments in associates, property and equipment, and others amounted to RMB14.449 billion, representing a decrease of RMB462 million from the end of last year and accounting for 3.30% of total assets. During the Reporting period, the Company maintained stable asset size with reasonable structure and sufficient liquidity.
3 Overseas assets
The size of overseas assets amounted to RMB15.405 billion, accounting for 3.54% of the total assets.
4 Liabilities
As at the end of the Reporting Period, total liabilities of the Group amounted to RMB352.523 billion, representing an increase of RMB16.187 billion from the end of last year and an increase of 4.81%. Excluding account payables to brokerage business, gearing ratio was 73.25%, representing an increase of 0.05 percentage point from the end of last year. Among the liabilities of the Group, borrowings, short-term debt instruments, placements from banks and financial institutions, debt securities issued, and repurchase agreements amounted to RMB194.548 billion, representing an increase of RMB1.474 billion from the end of last year and accounting for 55.19% of total liabilities; financial liabilities at fair value through profit or loss and derivatives financial liabilities amounted to RMB23.989 billion, representing an increase of RMB8.188 billion from the end of last year and accounting for 6.80% of total liabilities; account payables to brokerage clients amounted to RMB120.250 billion, representing an increase of RMB6.612 billion from the end of last year and accounting for 34.11% of total liabilities; accrued staff costs, current tax liabilities, contract liabilities, and others amounted to RMB13.737 billion, representing a decrease of RMB87 million from the end of last year and accounting for 3.90% of total liabilities.
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5 Borrowings and bond financing
As at the end of the Reporting Period, the Company's total borrowings and bond financing were RMB94.398 billion. Set out below is the breakdown of borrowings and bond financing of the Company as at the end of the Reporting Period:
Unit: '000 Currency: RMB
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Debt securities issued | 59,190,632 | 60,734,318 |
| Borrowings | 1,748,727 | 1,549,417 |
| Short-term debt instruments | 4,130,895 | 5,678,905 |
| Placements from banks and financial institutions | 29,327,263 | 39,194,625 |
| Total | 94,397,517 | 107,157,265 |
For details of interest rate and maturity profiles of borrowings and bonds financing, please refer to Notes 35, 36, 40 and 41 to the attached financial statements.
Save for the liabilities disclosed in this report, as at the end of the Reporting Period, the Company had no outstanding mortgage, charges, bonds, other debt capital, liabilities under acceptance or other similar indebtedness, lease purchase and finance lease commitment, guarantee or other material contingent liabilities.
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(iii) Analysis on investments
1 Overall analysis on external equity investments
As at the end of the Reporting Period, investment in associates of the Group amounted to RMB6.060 billion, representing a decrease of RMB68 million from the end of last year and a decrease of 1.11%, mainly due to the declaration of dividends of RMB255 million, a net decrease in investment in associates of RMB136 million, and recognition of investment gains of RMB342 million under the equity method. Please refer to Note 29 to the attached financial statements for the details of the Group’s external equity investment.
(1) During the Reporting Period, the Company had no material equity investments
(2) During the Reporting Period, the Company had no material non-equity investments
(3) During the Reporting Period, there was no material investment held by the Group or future plans for material investments or acquisition of capital assets, and none of each individual investment held by the Group constituted 5% or above of the total assets of the Group as at the end of the Reporting Period
(4) Financial assets at fair value
Unit: '000 Currency: RMB
| Items | Investment cost as at the end of the Period | Book value as at the end of the Period | Net amount purchased or sold during the Reporting Period | Changes in fair value during the Reporting Period | Net investment income during the Reporting Period |
|---|---|---|---|---|---|
| 1. Financial assets at fair value through profit or loss | 114,830,449 | 116,338,016 | 25,492,513 | 527,180 | 2,822,680 |
| 2. Debt instruments at fair value through other comprehensive income | 91,677,444 | 94,429,620 | (16,505,132) | 3,755,579 | 1,517,399 |
| 3. Equity instruments at fair value through other comprehensive income | 24,193,251 | 26,629,092 | 6,323,205 | 673,954 | 620,017 |
| 4. Derivative financial instruments | (148,386) | (277,559) | (371,321) | (483,959) | (844,083) |
Section III Report of the Board
(iv) Material assets and equity acquisition and disposal
During the Reporting Period, the Group had no material disposal of assets and equity. Save as disclosed in this report, the Company did not make any material acquisition or disposal of subsidiaries, associates or joint ventures during the Reporting Period.
(v) Analysis on major subsidiaries and associates
1 Major subsidiaries
Unit: 100 million Currency: RMB
| Company name | Company type | Principal businesses | Registered capital | Total assets | Net assets | Operating income | Operating profit | Net profit |
|---|---|---|---|---|---|---|---|---|
| Orient Futures | Wholly-owned subsidiary | Commodity futures brokerage, financial futures brokerage, futures investment consultancy, asset management and fund sales. | 48 | 952.34 | 63.88 | 8.15 | 3.22 | 2.63 |
| Orient Securities Capital Investment | Wholly-owned subsidiary | Establishment of direct investment funds, equity investments of enterprises, or investment of other funds related to equity investment, provision of financial advisory services to clients in respect of equity investment and other businesses permitted by the CSRC. | 40 | 43.88 | 43.26 | 0.74 | 0.37 | 0.33 |
| Orient Securities Asset Management | Wholly-owned subsidiary | Securities asset management and management of publicly offered securities investment funds. | 3 | 49.15 | 43.01 | 6.67 | 2.38 | 1.99 |
| Orient Securities Innovation | Wholly-owned subsidiary | Venture capital, financial products investment, investment management and investment consultancy. | 75 | 91.07 | 88.31 | 3.23 | 2.80 | 2.23 |
| Orient Finance Holdings | Wholly-owned subsidiary | Investment holding, and operation of types 1, 2, 4, 6 and 9 regulated activities by the SFC pursuant to SFO, covering securities brokerage, futures brokerage, asset management, investment banking and financial market, through establishment of various subsidiaries and licensed sub-subsidiaries. | 27.54 | 142.05 | 12.59 | 2.30 | 1.13 | 1.02 |
Note: The currency of the relevant data of the Company's wholly-owned subsidiary, Orient Finance Holdings, is all Hong Kong dollars.
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2 Major investee companies of the Company
China Universal Asset Management Company Limited has a registered capital of RMB133 million and its 35.412% equity interests is held by the Company. As at the end of the Reporting Period, total assets of China Universal amounted to RMB14.682 billion, and its net assets amounted to RMB10.823 billion. In the first half of 2025, its operating income (income from principal business) amounted to RMB2.341 billion, the profit from principal business amounted to RMB611 million, and net profit amounted to RMB480 million.
Its principal businesses are fund raising, fund sales, asset management and other businesses permitted by the CSRC.
Note: The above data are all based on financial information prepared in accordance with CASBE.
(vi) Structured Entities Controlled by the Company
The Company incorporated certain structured entities into the consolidation scope, including asset management plans and funds managed and invested by the Company. The Company mainly judges its control over structured entities by three factors, namely, whether it has power over the structured entities, whether it is entitled to variable returns through participation in the activities of structured entities, and whether it has the ability to use the power over structured entities to influence the amount of returns.
As at the end of the Reporting Period, the Company had a total of 45 structured entities with a total net assets of RMB20.993 billion included in the consolidated statement scope. During the Reporting Period, there was an increase and a decrease of 8 structured entities in the consolidated statement scope, respectively.
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Details of structured entities incorporated into the consolidation scope during the period:
Unit: '000 Currency: RMB
| Structured entities incorporated into the consolidation scope | As at the end of June 2025 or from January to June 2025 |
|---|---|
| Total assets | 21,499,281 |
| Total liabilities | 506,391 |
| Total net assets | 20,992,890 |
| Operating income | 1,175,973 |
| Net profit | 1,157,277 |
Note: The accounting data of the above-mentioned structured entities are all based on the CASBE.
(vii) Scope of Consolidation of the Statements
-
As compared with the beginning of the year, the Group added 8 structured entities into its scope of consolidation during the Reporting Period, which include 2 structured entities newly consolidated by the Group, 3 structured entities newly consolidated by Orient Futures and 3 structured entities newly consolidated by Orient Finance Holdings.
-
As compared with the beginning of the year, the Group reduced 12 entities into its scope of consolidation during the Reporting Period, which include 4 subsidiaries and 2 structured entities reduced by Orient Finance Holdings, 1 structured entity reduced by Orient Securities Asset Management, 2 structured entities reduced by Orient Futures and 3 structured entities reduced by Orient Securities Innovation. The reasons for the reductions include changes in shareholding resulting in loss of control, liquidation and deregistration, cease of operation and transfer.
Section III Report of the Board
V. OTHER DISCLOSURES
(i) Potential Risks
With the strategic goal of establishing a sound comprehensive risk management system and risk management capability that are in line with the Company's own development strategy, the Company is committed to carrying out reasonable and effective risk control based on an actionable management system, sound organizational structure, reliable information technology system, quantitative risk indicator system, professional talent team and effective risk response mechanism. The Company has established a comprehensive risk management system covering various aspects such as organization, business and risk types: in terms of organization, the scope of risk management covers all departments, branches and subsidiaries of the Company; in terms of business, it covers proprietary investment, credit business, investment banking, asset management, wealth management and various other businesses; in terms of risk types, the risk management covers market risk, credit risk, liquidity risk, operational risk, money laundering risk, technology risk, reputational risk and other special risk types.
The Company promotes a stable risk culture, and has established a risk management system in line with the development of the Company according to relevant laws and regulations and the Company's Articles of Association and based on the actual situation of the Company. It has also established an organizational structure based on the "three lines of defense" for comprehensive risk management, and established a hierarchical authorization system and an approval mechanism for new businesses. It sets risk appetite, risk tolerance and risk thresholds at the beginning of each year, and divides the thresholds into different levels, thereby maintaining a scientific and effective risk indicator system. The Company has established a graded warning and tracking mechanism for various risk indicators, including risk control indicators, to monitor and provide warning of risk indicators through the corresponding risk management systems. The Company has also established a reasonable risk management reporting mechanism, a compliance risk control inspection and resolution mechanism, and a performance evaluation mechanism that reflects the effectiveness of risk management.
1 Market risk
Market risk mainly refers to the risk of losses incurred by the Company due to changes in market prices, and can be categorized into stock price risk, interest rate risk, exchange rate risk and commodity price risk, which refers to risks which the Company is exposed to due to the fluctuation in stock prices, interest rate, exchange rate and commodity prices respectively.
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Section III Report of the Board
Based on the overall business strategy and with the participation of the Board, the management and all staff, the Company accurately identifies, prudently assesses, dynamically monitors, timely responds and entirely manages the market risks in the Company's operation. Relevant committees are established under the Board and the management, and each business department, branch and subsidiary perform their respective duties of market risk management. The Company's business departments, branches and subsidiaries are the first line of defense against market risks, while the risk management department of the Company is responsible for coordinating the overall market risk management of the Company.
The Company manages market risks with focus on net capital, liquidity management and risk tolerance, implements overall management on risk control indicators relating to capital, scale, gearing and risk exposure according to specific level and module, and implements refined management on market risk exposure from the perspective of product type, portfolio, model and hedging to control market risks within a tolerable and reasonable range and align business returns with risk levels.
The Company has established a system covering the Group's allocation of assets and liabilities and market risk limits, reflecting the Company's overall market risk appetite and risk tolerance. The Company has established a hierarchical risk limit authorization system which classifies the limit indicators by major business types and assigns to different business departments from top to bottom to implement effective controls over various businesses and products so as to ensure the risk level to be within risk appetite set by the Company. Risk limits may be adjusted in accordance with market changes and indicator warnings during the year.
The Company closely follows the macro-economic indicators and trends, and significant economic policies and development. The Company also evaluates the potential systemic risk of investment as may be caused by changes in macro-economic factors, and adjusts its investment strategies based on regular monitoring of market risk indicators. The Company establishes decision-making, implementation and accountability systems relating to material issues and develops contingency plans for different predictable extreme situations, under which material risks will be categorized and managed according to the level of severity.
The Company adopts daily mark-to-market, concentration analysis and quantitative risk model to manage business scale, risk exposure, establishes trailing stop-loss mechanisms, identifies the key factors affecting investment portfolio returns through sensitivity analysis, and evaluates the tolerance of investment portfolios to extreme market fluctuations by using scenario analysis and stress testing.
Interim Report 2025 DFZQ
Section III Report of the Board
During the Reporting Period, the Company strengthened research on the market, tracked changes in prices, monitored exchange rate risk exposure, proactively managed its proprietary trading positions according to dynamic market fluctuations and effectively controlled the market risks by reasonably using various derivatives for hedging and mitigation. At the end of the Reporting Period, the VaR of the Company's overall market risk was RMB316 million (95%, 1 day).
2 Credit risk
Credit risk mainly refers to the risk of loss due to default by the financier, counterparty or issuer. The Company's primary credit risks are categorized into the following three aspects: the first is direct credit risk, i.e. the risk arising from the issuer's failure to fulfill contractual obligations; the second is counterparty risk, i.e. the risk arising from a breach of contract by the counterparty and financier in a derivatives transaction or securities financing transaction; the third is settlement risk, i.e. the risk arising from a breach of contract during the settlement and delivery of a transaction. To summarize, this occurs when the Company fulfills its delivery obligation, but the counterparty breaches the contract.
The Board and relevant committees thereunder, the Supervisory Committee, the management and relevant committees thereunder, the Chief risk officer, all relevant departments, branches and subsidiaries of the Company are required to fulfill their respective credit risk management responsibilities, with business units, branches and subsidiaries serving as the first line of defense in credit risk management while the risk management department assumes overall responsibility for coordinating the Company's credit risk management activities.
All business units, branches, and subsidiaries engaged in credit risk-related activities must operate strictly within the Company's credit risk management framework and fulfill their respective responsibilities. The Company has implemented limit management on credit risk according to regulatory requirements and risk management needs, set credit risk limits based on the Company's risk tolerance and net capital to control the quality of credit assets and credit risk concentration, and realized refined management on credit risk exposure. In the course of business, the Company strictly complied with the credit risk limit approved by the Company, and established a daily monitoring mechanism for limit indicators to effectively control credit risk.
Interim Report 2025 DFZQ
Section III Report of the Board
The Company has established its respective credit risk management system with regard to financing parties, counterparties and issuers from the perspective of business practices. The Company has enhanced evaluation of quality and risks and implemented credit risk management through means including contract review and monitoring of transactions and public sentiment. The Company pays great attention to possible non-compliance in the transaction and has developed corresponding risk control and countermeasures. The Company has enhanced analysis on the fundamentals of issuers and counterparties, and established the corporate internal scoring system for credit risk, and implemented internal rating, credit management, concentration management, client management, stress tests, early warning, risk reporting and other functions through the credit risk management system, thus strengthening its credit risk management and enhancing credit risk management capabilities. In addition, with respect to OTC derivative transactions, the Company has set the margin deposit ratio for counterparties and rule restrictions on the transaction, applied scientific methods to measure counterparty credit risk exposure, and conducted credit management. Counterparty credit risk exposure was controlled through measures such as daily mark-to-market, margin calls, forced liquidation, and credit limit monitoring. In credit trading business, the Company has established mechanisms of credit rating assessment for clients, credit facilities management, collateral management and supervisory reporting, used the extension of the trading period as a means of in-process management, and handled risk projects through mandatory close-out mechanism and legal proceedings. In addition, the Company has established the unified business and customer management mechanism based on external guidelines and in line with the Company's actual business development, to carry out unified measurement, monitoring and management of the relevant business, improve the Company's and the Group's credit management system and further refine credit risk management.
Interim Report 2025 DFZQ
Section III Report of the Board
3 Liquidity risk
Liquidity risk refers to the risk that the Company cannot obtain sufficient funds at a reasonable cost in time to pay its debts when falling due, fulfill other payment obligations and meet the capital demand for normal business development.
According to the regulatory requirements including the Guideline on Liquidity Risk Management of Securities Companies (《證券公司流動性風險管理指引》) and for the purpose of its own risk management, the Company continuously refines the liquidity risk management system and internal management system and has dedicated personnel responsible for dynamic monitoring, pre-warning, analysis and reporting of the Company's liquidity risk. During the Reporting Period, the Company completed the transformation of its liquidity risk management system towards domestically developed information technology applications, enabling the effective identification, measurement, monitoring and control of liquidity risk through the information system. The Company carefully determines the qualitative principles and quantitative criteria of liquidity risk appetite at the beginning of each year, and has established a limit assessment and adjustment mechanism to implement limit management of liquidity risk and conduct monitoring and reporting of compliance with limits, and ensured that the Company's liquidity coverage ratio and net stable funding ratio continued to meet regulatory requirements. The Company possesses a strong credit profile and stable financing channels. For management of daily liquidity position, the Company reserves sufficient high-quality liquid assets, and monitors cash flow shortfall on a daily basis to ensure the smooth operation of the Company's business and the timely repayment of liabilities as they fall due. The Company conducts regular liquidity stress testing and emergency exercise, analyses the results of the stress tests to identify risk spots and vulnerabilities, and applies the results of the stress tests in the Company's relevant decision-making processes. During the Reporting Period, the Company continued to put more efforts into liquidity risk management of subsidiaries, improved the liquidity risk management capabilities of subsidiaries and the whole liquidity risk control level of the Group.
Interim Report 2025 DFZQ
Section III Report of the Board
4 Operational risk
Operational risk refers to risk of losses which may be caused by weakness or problem existing in internal procedures, staff and information technology systems as well as by external events.
During the Reporting Period, the Company continuously improved its operational risk management systems by formulating the Administrative Rules on Operational Risk Event and Loss Data Collection of DFZQ (《東方證券股份有限公司操作風險事件與損失數據收集管理細則》), the Administrative Rules on Operational Risk Key Risk Indicators of DFZQ (《東方證券股份有限公司操作風險關鍵風險指標管理細則》), and the Administrative Rules on Operational Risk and Control Self-Assessments of DFZQ (《東方證券股份有限公司操作風險與控制自我評估管理細則》). This established an institutional administrative system centered on the Company's Measures for Operational Risk Management, supported by the three rules. The Company established an operational risk identification and assessment mechanism to conduct risk and control self-assessment on a regular and ad hoc basis; and set up a system of key risk indicators to conduct dynamic and continuous monitoring of various types of operational risk-related information and indicators to analyze the operational risk situation; established a mechanism for the collection and management of operational risk events and loss data for the comprehensive and sustainable identification, collection, summary, analysis and reporting of operational risks loss data. Through its operational risk administrative system, the Company executes the identification, assessment, monitoring, and reporting of operational risks.
Interim Report 2025 DFZQ
Section III Report of the Board
5 Money laundering and terrorism financing risk
Money laundering risk refers to the risk that the products or services of companies are manipulated by criminals to engage in money laundering activities, which will adversely affect the Company in terms of legal compliance, reputation, compliance and operation.
During the Reporting Period, the Company thoroughly implemented the new Anti-Money Laundering Law, accelerated the enhancement of its anti-money laundering decision-making and coordination mechanisms, and advanced key initiatives including customer due diligence, suspicious transaction identification, targeted anti-money laundering preventive measures, system effectiveness evaluations, anti-money laundering publicity, training, inspection and assessment. These efforts propelled the Company's anti-money laundering transformation toward full alignment with the overarching principle of a risk-based approach. Firstly, the Company continuously refined the senior management's deliberation and decision-making processes for major anti-money laundering matters and strengthened cross-functional coordination efficacy of the Company's anti-money laundering task force, comprehensively elevating the systematic execution of anti-money laundering operations. Secondly, the Company intensified identification and management of high-risk customers, with prioritized focus on risk sectors. Thirdly, the Company established a framework for continuous due diligence, clarifying operational requirements and risk control measures to strengthen "full lifecycle" money laundering risk prevention for customers. Fourthly, the Company conducted dedicated evaluations of anti-money laundering system effectiveness and continuously optimized suspicious transaction monitoring indicator models based on industry characteristics and business realities to enhance detection efficiency. Fifthly, the Company focused on upgrading mechanisms for anti-money laundering performance evaluations, publicity, training, and inspections, and implemented multi-tiered targeted anti-money laundering inspections, training, and assessments to steadily improve operational effectiveness. Sixthly, the Company successfully co-hosted the 2025 Shanghai Securities Association Anti-money Laundering Knowledge Competition, reinforcing anti-money laundering risk culture, fostering enterprise-wide engagement in money laundering risk management, and contributing to a safer, more robust financial market environment.
Interim Report 2025 DFZQ
Section III Report of the Board
6 Technology risk
Technology risk refers to adverse situations arising from the use of computer hardware, software, networks and other systems in the Company's business activities through information technology, including program errors, system downtime, software defects, operational mistakes, hardware failures, insufficient capacity, network vulnerabilities and data leakage. These risks not only include technical defects and vulnerabilities, but also cover various aspects of information security management, such as system construction, system operation and maintenance and information security protection.
The Company fully recognizes the importance of management, prevention and control of information technology risks in protecting our information assets, ensuring business continuity and maintaining information security. In terms of information technology governance, the Company has established an IT governance system with Information Technology Governance (信息技術治理) as the top-level design, defining governance objectives, organizational structure and mechanisms. The Information Technology Governance Committee is responsible for formulating and reviewing IT governance objectives, development plans and annual budgets, as well as assessing the approval, investment, priority and major issues of key IT projects. Supporting management processes and operational guidelines such as Software Management Measures (軟件管理辦法), Software Project Management Standards (軟件項目管理規範) and Engineering Project Operation Guideline (工程項目作業指導書) have been formulated, forming a governance system that covers guidance, standardization and practical implementation. During the Reporting Period, to enhance the refinement of architecture management, the Company prepared Classification Standards and Specifications for IT System Structure Management of 東方證券股份有限公司 (東方證券股份有限公司IT系統架構管理分級標準規範), aiming to address the lack of system classification standards and inconsistent structure management. Meanwhile, in response to the requirements of the group-wide management strategy, professional operation and penetrating management, the Company incorporated the Management Checklist of Subsidiaries into the information (子公司管理清單) technology governance framework to strengthen group-level management.
Interim Report 2025 DFZQ
Section III Report of the Board
In terms of data security management, the Company has established an institutional framework centered on the Data Governance Measures of 東方證券股份有限公司 (《東方證券股份有限公司數據治理辦法》), clarifying governance principles, organizational responsibilities and issue-handling mechanisms. Supporting specialized systems covering data security, data quality and data standards have been formulated to ensure effective implementation from principles to operations. During the Reporting Period, the Company revised Data Security Management Specifications of 東方證券股份有限公司 (《東方證券股份有限公司數據安全管理規範》), incorporating requirements such as data minimization principle and protection of personal information rights. The Company conducted confidentiality self-inspections and rectifications. Relevant improvements include adding prominent labels on the login interfaces of office and email systems, adding uploaded attachment with a prominent sign of prohibiting the processing of state secrets, as well as integrating confidentiality clause in contract templates to clarify that contracts are managed as work secrets. The Company continuously improved the client privacy policy, actively carried out security certifications, and strengthened the protection of clients' personal information. Furthermore, the Company revised Guidelines for Cross-Border Data Management of 東方證券股份有限公司 (《東方證券股份有限公司數據跨境管理指引》), specifying the scope and implementation methods of cross-border data. The Company also has implemented the organizational mechanisms and implementation pathways for cross-border data and personal information impact assessments in accordance with the Compliance Guidelines for Promoting and Regulating Cross-Border Data in the Financial Industry (《促進和規範金融業數據跨境流動合規指南》) and the Personal Information Protection Law (《個人信息保護法》).
In terms of system operation and maintenance, cybersecurity, and emergency management, the Company has obtained ISO20000 and ISO27001 certifications, and established a relatively complete operation and maintenance service management system as well as an information security management system. The Company has deployed multiple supporting operation and maintenance tool systems, covering monitoring, process control, automated operations and control, configuration management, intelligent analysis and visualization, which comprehensively enhance its integrated digital and intelligent operation management capabilities, thus ensuring the smooth development of the Company's business. In the field of network and information security, the Company has established an overall security security infrastructure framework, security management and security training systems, and security operations, data security, and development security platforms. Guided by the principle of "stable infrastructure, refined systems, and robust platforms," the Company continuously promoted cybersecurity capabilities through normalized security operations and index-based management, ensuring the overall stable and controllable operation. This approach has enhanced both the efficiency and quality of security operations. The Company conducted regular emergency drills to evaluate the scientific validity and practicality of contingency plans and strengthen cross-departmental and cross-hierarchical collaboration capabilities, thereby improving employees' emergency response skills and emergency treatment capabilities.
Interim Report 2025 DFZQ
Section III Report of the Board
In daily operations, the system access rights are strictly configured in accordance with established procedures to ensure proper approval, documentation, and traceability. The Company conducts annual supplier evaluations and implements detailed management guidelines to enforce comprehensive risk management for outsourced personnel throughout the process. The compliance, risk control, and internal audit departments conduct annual inspections, assessments, or audits for the IT management function, with a third-party audit firm performing a dedicated IT management audit every three years. Identified issues from internal and external inspections and audits are assigned to designated personnel for remediation to mitigate risks.
7 Reputational risk
Reputation risk mainly refers to the risk that due to the Company's operation or external events, and the violation of honest practice requirements, professional ethics, business norms, industry rules and regulations and other related behaviours by the staff, resulting in negative reviews of the Company by investors, issuers, regulatory authorities, self-regulatory organisations, the general public and the media, thereby damaging the brand value, adversely affecting the normal operation of the Company, and even affecting market stability and social stability.
During the Reporting Period, the Company did not encounter any material public sentiment events that had an impact on the reputation of the Company, certain sensitive events had been addressed efficiently and appropriately. The Company's reputation risk management is mainly reflected in the following aspects:
(1) Further strengthen supervision on public sentiment by introducing AI-powered disambiguation capabilities, significantly enhancing the accuracy and efficiency of sentiment monitoring. Through natural language processing technology, the monitoring system is able to more precisely identify and analyze information in complex contextual scenarios. For self-media platforms, the system has been upgraded with image OCR function to effectively recognize text information against complex backgrounds, thereby expanding the monitoring scope and strengthening capabilities for capturing multi-channel and multi-category information.
Interim Report 2025 DFZQ
Section III Report of the Board
(2) The Company has established a six-in-one incident handling mechanism for monitoring, reporting, response, information dissemination, evaluation and improvement, and external reporting. Through the perfect public opinion reporting mechanism, the Company effectively carries out early warning, prevention and control of reputational risk, manages reputational risk, and incorporates reputational risk management into the Company's internal audit scope.
(3) Establishing a comprehensive system for reporting public sentiment. Monthly briefings on public sentiment are sent to senior management of the Company and relevant situations are reported to the Board of the Company and higher-level entities through relevant departments to ensure that the Board and the management are aware of the level of reputational risk of the Company in a timely manner. For unexpected sensitive public sentiment, a special report on the analysis of public sentiment (usually in the form of a daily report) will be prepared and sent to the leaders and relevant departments of the Company in a timely manner.
(4) The reputation of staff members is incorporated into the human resources management system, and in the process of staff recruitment and subsequent staff management, appraisal and promotion, the human resources management department, together with the department responsible for reputational risk management, will examine and assess the historical reputation of staff members and use it as an important basis for judgement.
In addition, like other financial institutions, the Company is inevitably exposed to certain degree of compliance risks during the operation and management process. The comprehensive risk management system implemented by the Company has fully covered such type of risk, the corresponding responsible departments have been specified, the corresponding management systems have been established and the corresponding technical measures have been implemented.
The Company has formulated corresponding risk management policies and measures to identify and evaluate the above risks, sets appropriate risk limits and internal control processes, continuously monitors the above risks through reliable management and information systems, and strives to maintain such risks to be measurable, controllable and tolerable.
Interim Report 2025 DFZQ
Interim Report 2025 DFZQ
Section III Report of the Board
VI. THE COMPANY FAILED TO DISCLOSE INFORMATION ACCORDING TO THE STANDARDS DUE TO SPECIAL REASONS, E.G. NON-APPLICABILITY TO THE STANDARDS OR STATE SECRETS AND TRADE SECRETS AND THE DESCRIPTION OF RELEVANT REASONS
The Company belongs to the financial securities industry, proprietary securities investment is the main business of the Company, the relevant securities position involves commercial confidentiality, and the Company has already disclosed the overall situation of proprietary securities investment in the relevant section, therefore, it has not disclosed the details in the standard format.
Section IV Corporate Governance, Environment and Society
I. CHANGES OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
| Name | Position | Particulars of changes |
|---|---|---|
| Xie Weiqing | Non-executive Director | Resignation |
Explanation on changes of Directors, Supervisors and senior management of the Company
On July 18, 2025, Mr. Xie Weiqing ceased to serve as a non-executive Director and a member of the audit committee of the Board of the Company due to work adjustment.
II. DIRECTORS, SUPERVISORS AND OTHER INFORMATION
(i) Dealings in Securities by Directors, Supervisors and Relevant Employees
The Company has adopted the standards set out in the Model Code as the code of conduct regarding the securities transactions conducted by all Directors and Supervisors. Based on the specific enquiries of the Directors and Supervisors, all Directors and Supervisors confirmed that during the Reporting Period, all Directors and Supervisors have strictly complied with the standards stipulated in the Model Code. The Company also sets guidelines on the trading of securities by relevant employees (as defined in the Hong Kong Listing Rules), which are not less exacting than the Model Code. During the Reporting Period, the Company found no breaches of the relevant guidelines by the relevant employees. During the Reporting Period, no current or former Directors, Supervisors or senior management of the Company held shares or share options, or were granted restricted shares of the Company.
(ii) Material Changes in Relevant Information of Directors and Supervisors
- Mr. Lu Weiming, a vice chairman and an executive Director of the Company, has ceased to serve as a director of Orient Finance Holdings (Hong Kong) Limited since April 2025, and has served as the chairman of China Universal Asset Management Co., Ltd. since July 2025.
- Mr. Lu Dayin, an executive Director and vice president (in charge of affairs) of the Company, has ceased to serve as the chief information officer of the Company since January 2025, and has served as the chairman of Orient Finance Holdings (Hong Kong) Limited since April 2025.
- Mr. Xie Weiqing, a non-executive Director of the Company, has ceased to serve as an executive director of Shenergy Group Business Service Co., Ltd. since April 2025, and has served as the chief financial officer of Shanghai Lingang Economic Development (Group) Co., Ltd. since April 2025. He has ceased to serve as the general manager of Finance Department of Shenergy (Group) Company Limited and a director of Shenergy Company Limited since May 2025, and has ceased to serve as a director of China Pacific Insurance (Group) Co., Ltd. and a director of China Pacific Life Insurance Co., Ltd. since June 2025.
Interim Report 2025 DFZQ
Section IV Corporate Governance, Environment and Society
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Mr. Ren Zhixiang, a non-executive Director of the Company, has served as the chairman of Zhejiang Zheneng Financial Leasing Co., Ltd. and the chairman of Shanghai Puneng Financial Leasing Co., Ltd. since January 2025, and has ceased to serve as a director of Zhejiang Fuzhe Investment Co., Ltd. since May 2025.
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Mr. Wu Hong, an independent non-executive Director of the Company, has served as a lawyer of Shanghai SG & CO Lawyers since January 2025.
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Ms. Du Xinhong, a shareholder representative Supervisor of the Company, has ceased to serve as the chairman of Shenergy Group Finance Co., Ltd. since June 2025.
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Mr. Shen Guangjun, a shareholder representative Supervisor of the Company, has ceased to serve as a director of China Shanghai Foreign Trade (Group) Co., Ltd. since January 2025 and the deputy chief accountant of Shanghai Construction Group Co., Ltd. since June 2025, and has served as the chief financial officer of Shanghai Construction Group Co., Ltd. since June 2025.
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Ms. Ding Yan, an employee representative Supervisor of the Company, has ceased to serve as a supervisor of Great Wall Fund Management Co., Ltd. since June 2025, and has served as a supervisor of China Universal Asset Management Company Limited since July 2025.
Save as disclosed above, in accordance with Rule 13.51B(1) of the Hong Kong Listing Rules, there was no material change in the information of Directors, Supervisors or chief executives of the Company.
(iii) Service Contracts of Directors and Supervisors
The Company has not entered and does not recommend entering into any service contracts with any Directors or Supervisors in their respective capacity as Director/Supervisor (except those that expire or may be terminated by the employer within one year without payment of compensation (other than statutory compensation)).
Interim Report 2025 DFZQ
Section IV Corporate Governance, Environment and Society
(iv) Employees and Remuneration Policy
As at June 30, 2025, the Company had a total of 8,082 employees (including brokers), including 6,086 in the Parent Company and 1,996 in its wholly-owned and controlling subsidiaries.
The Company implements a market-oriented and performance-based remuneration system to ensure that remuneration aligns with the value of positions, performance contributions and market levels. The Company always adheres to the concept of stable operation, and closely integrates remuneration management with risk management. It has formulated an incentive and restraint mechanism that aligns with risk levels, characteristics and duration to ensure the effective implementation of comprehensive risk management. This approach ensures effective coordination between the remuneration restraint mechanism and compliance management, preventing compliance risks arising from excessive and short-term incentives. The Company incorporates professional conduct, honest practice, compliance and risk control, social responsibility performance, quality of customer services and long-term interests of shareholders into its remuneration management. At the same time, it establishes and improves remuneration management system tailored to business characteristics, enhancing its ability to serve the real economy and national strategies. The Company practices the industry culture of "compliance, integrity, professionalism and stability", and integrates it into remuneration management. We rely on high-quality talents with both integrity and ability to create value for the Company and the society, and promote the sustainable development of the Company and the industry. The Company has continued to deepen the two-way linkage between remuneration, economic benefits and labour efficiency levels, continuously optimised and standardized the order of income distribution, deepened the performance concept of value contribution and performance output and continued to improve the performance incentive mechanism and improve its incentive and restraint mechanisms.
Pursuant to the applicable laws and regulations, the Company enters into a labour contract with each of its employees to establish an employment relationship. The labour contract contains the provisions relating to a contract term, working hours, rest and vacation, labour remuneration and insurance benefits, labour protection and conditions, as well as modification and termination of the contract.
In accordance with the applicable laws and regulations, the Company establishes various social insurance schemes (pension insurance, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance) and housing provident fund for its employees. It made contributions to the above social insurance and housing provident fund on time and in full. Meanwhile, the Company, in accordance with the applicable PRC regulations, also established a corporate annuity system and supplementary medical insurance system to provide employees with supplementary pension and medical benefits.
Interim Report 2025 DFZQ
Section IV Corporate Governance, Environment and Society
(v) Training Programs
During the Reporting Period, the Company continued to focus on the medium and long-term mission of "focusing on capacity building and systematically creating a strong engine for talent development", and by taking into consideration of its strategic objectives, the evolving needs of leadership development at various levels, and industry culture-building requirements, the Company implemented diversified training programs with distinctive characteristics, including flagship initiatives such as the Inaugural Political Education Training Program for Cadres, the "Orient Spark" internal trainer development program, and the "Orient Securities Forum" exchange and sharing platform. Through continuous innovation in training forms and an unwavering focus on value creation, the Company had effectively strengthened the political competency and operational execution capabilities of our leadership teams, while significantly enhancing participants' sense of professional achievement and organizational value.
III. OTHER INFORMATION ON CORPORATE GOVERNANCE
As a public company listed in both Mainland China and Hong Kong, the Company has operated its business in a standard manner and in strict compliance with the requirements under the relevant laws, regulations and regulatory documents in the places where the shares of the Company are listed. The Company has made great efforts to maintain and improve its good image in the market. During the Reporting Period, the Company strictly complied with the requirements under the Company Law, the PRC Securities Law, the Promulgation of the Regulations on the Supervision and Administration of Securities Companies, the Rules for Governance of Securities Companies, the Code of Corporate Governance for Listed Companies, the Corporate Governance Code and other relevant laws and regulations as well as the Articles of Association, and the corporate governance standards were continuously improved. The governance structure of "general meeting of Shareholders, the Board, the Supervisory Committee and senior management" of the Company ensured clear separation of powers and duties, effective balance of authority and scientific decisions, and therefore guaranteed the scientific and regulated operation of the Company. The Company kept on optimizing the establishment of the internal control management system, which enhanced the integrity, reasonableness and effectiveness of the internal control function. For a long time, the Company has been working on the continuous enhancement of the corporate governance structure and system building.
Interim Report 2025 DFZQ
Section IV Corporate Governance, Environment and Society
During the Reporting Period, the operation and management of the Company were standardized and orderly, enabling the Company to continuously optimize its rules and procedures in strict compliance with the relevant requirements under laws and regulations and regulatory documents. During the Reporting Period, in order to further improve corporate governance, the Company revised its Articles of Association and formulated governance policies such as the Market Value Management System and the Administrative Measures for Supervision by the Board of Directors, in accordance with relevant regulations and the Company's actual circumstances. During the Reporting Period, the Company convened one general meeting, five meetings of the Board, two meetings of the Supervisory Committee, two meetings of the Strategic Development Committee, four meetings of the Compliance and Risk Management Committee, one meeting of the Remuneration and Nomination Committee, three meetings of the Audit Committee, and one special meeting of Independent Directors. The convening procedures and voting procedures of the general meetings, Board meetings and meetings of the Supervisory Committee of the Company were legal and valid. During the Reporting Period, the Company continuously strengthened the investor relationship management and information disclosure, hence the investor relationship management was regulated and professional, and the information disclosed was true, accurate, complete, timely and fair, which enhanced the transparency of the Company continuously. By the formulation, continuous improvement and effective implementation of systems, the corporate governance structure of the Company became more standardized and the level of corporate governance kept on improving. There was no discrepancy between the actual corporate governance of the Company and the requirements of the Company Law and relevant regulations of the CSRC. In addition, the Company strictly complied with all code provisions set out in Part 2 of the Corporate Governance Code and met most of the requirements for the recommended best practices set out in Part 2 of the Corporate Governance Code. There was no discrepancy between the actual corporate governance of the Company and the requirements of the Company Law, relevant regulations of the CSRC and the Corporate Governance Code.
(i) Shareholders and general meetings
The Company convened and held general meetings in strict compliance with the requirements under the Articles of Association and Rules of Procedure for Shareholders' General Meetings, to ensure that all shareholders were treated equally and were able to fully exercise their rights.
Interim Report 2025 DFZQ
Section IV Corporate Governance, Environment and Society
(ii) Directors and the Board
The Company appointed and changed its Directors in strict compliance with the provisions of the Articles of Association. The composition and qualification of the Directors were in compliance with the applicable laws and regulations. As at the end of the Reporting Period, the Board comprised 15 Directors, among whom three were executive Directors, six were non-executive Directors, five were independent non-executive Directors, and one was employee representative Director. All Directors are able to perform their duties in due diligence and protect the interests of the Company and the shareholders as a whole. The Strategic Development Committee, Audit Committee, Compliance and Risk Management Committee, Remuneration and Nomination Committee of the Board were assigned specific duties, clear authorization and responsibilities, and operated in high efficiency. The Audit Committee and the Remuneration and Nomination Committee were chaired by an independent non-executive Director, and with over half of the members being independent non-executive Directors; the convenor of the special meeting of Independent Directors shall be the chairman of Audit Committee of the Board.
The Audit Committee was established under the Board, which is in compliance with the relevant requirements of the CSRC, SSE and Hong Kong Listing Rules. As at the end of the Reporting Period, the Audit Committee comprised five members, namely, Mr. Zhu Kai, Mr. Xie Weiqing, Mr. Shi Lei, Mr. Feng Xingdong and Mr. Chan Hon. Mr. Xie Weiqing resigned from his position as a member of the Audit Committee on July 18, 2025. The Audit Committee is mainly responsible for facilitating communication between the internal and external auditors of the Company, supervision and review of the audit process, and provision of professional advice to the Board. The Audit Committee has reviewed and confirmed the 2025 interim financial report of the Company.
(iii) Supervisors and Supervisory Committee
The Supervisory Committee of the Company currently comprises seven Supervisors, among whom three are employee representative Supervisors and four are shareholder representative Supervisors. The qualification of the Supervisors and the composition of the Supervisory Committee are in compliance with relevant laws and regulations. All Supervisors of the Company are able to perform their duties in due diligence, take accountability to shareholders, monitor the legality and compliance of the duty performance of the finance department, Board members and senior management of the Company, and provide recommendations and suggestions to the Board and senior management regarding relevant matters.
Interim Report 2025 DFZQ
Section IV Corporate Governance, Environment and Society
(iv) Senior management
Procedures for the appointment of the senior management of the Company are in compliance with the rules under the Company Law and the Articles of Association. The senior management of the Company conducts business in compliance with laws, regulations and authorizations from the Board, with a view to maximizing shareholders' value and social benefits.
(v) Investors' relationship management work progress
The Company attaches great importance to investor relations management. By upholding the work philosophy of "Sincerity, Professionalism and Compliance", the Company has actively engaged in various investor relations activities to enhance investors' understanding and recognition of the Company's investment value. The Company has established a comprehensive set of rules and regulations, including the Market Value Management System and the Investor Relations Management Measures, to create a multi-dimensional investor communication platform that integrates on-site meetings, telephone calls, and online interactions. On one hand, the Company utilizes various communication methods such as general meetings, results presentations, investor meetings, investor site visits, and roadshows, as well as communication platforms including the "Investor Relations" section of the Company website, E-interactive platform launched by the SSE, investor hotline, email, and investor relations social media accounts to ensure sufficient interaction with various investors, promptly address their concerns, and effectively protect their interests. On the other hand, the Company diligently listens to market feedback, regularly relays investor suggestions to the management, and works collaboratively with investors to promote high-quality development.
In the first half of 2025, the Company successfully held its 2024 annual and 2025 first quarter results presentation. The annual results presentation was conducted through a combination of video and online interactive formats, actively showcasing the Company's business direction and competitive advantages to enhance market confidence. Furthermore, the Company organized 2 analyst meetings, participated in 19 brokerage strategy conferences, received a total of 11 on-site and online surveys, carried out centralized roadshows in Beijing, Shanghai, Hong Kong and elsewhere, reaching 279 domestic and overseas analysts and institutional investors, and answered hundreds of calls on the investor hotline to patiently address investor inquiries and respond to market concerns. During the Reporting Period, the Company won various awards including the "Best Practice in Listed Company Investor Relations Management" by the China Association for Public Companies, which effectively enhanced the Company's market reputation and influence.
Interim Report 2025 DFZQ
Section IV Corporate Governance, Environment and Society
During the Reporting Period, the Company held results presentations and was invited to participate in securities dealers' strategy meetings and other exchange activities as follows:
| Date of event | Communication methods | Communication targets | Communication content |
|---|---|---|---|
| January 8, 2025 | On-site communication | Investors invited to the 2025 annual strategy meeting of Eastmoney Securities | The Company's operation, business characteristics and highlights, long-term development strategy, etc. |
| February 13, 2025 | On-site communication | Investors invited to the 2025 spring listed companies conference of Kaiyuan Securities | |
| February 13, 2025 | On-site communication | Investors invited to the 2025 spring listed company exchange meeting of Shenwan Hongyuan | |
| February 18, 2025 | On-site communication | Investors invited to the 2025 spring strategy meeting of Guotai Junan | |
| February 19, 2025 | On-site communication | Investors invited to the 2025 listed company exchange meeting of Founder Securities | |
| February 26, 2025 | On-site communication | Investors invited to the industrial forum of GF Securities | |
| February 28, 2025 | On-site communication | 2025 Capital market summit of Guolian Minsheng Securities | |
| March 31, 2025 | Teleconference | 2024 Annual results presentation of DFZQ | |
| April 11, 2025 | Video and online interaction | 2024 Annual results presentation of DFZQ | |
| May 7, 2025 | On-site communication | Investors invited to the 2025 summer strategy meeting of Guohai Securities | |
| May 8, 2025 | On-site communication | Investors invited to the 2025 interim strategy meeting of Western Securities |
Interim Report 2025 DFZQ
Section IV Corporate Governance, Environment and Society
| Date of event | Communication methods | Communication targets | Communication content |
|---|---|---|---|
| May 13, 2025 | Teleconference | Investors invited to the 2025 A Share Company Day of Citigroup | |
| May 14, 2025 | On-site communication | Investors invited to the 2025 interim listed company exchange meeting of SDIC Securities | |
| May 15, 2025 | Online interaction | 2025 Group results briefing of annual report of listed companies in Shanghai and the briefing on the first quarterly results of 2025 | |
| May 27, 2025 | On-site communication | Investors invited to the 2025 interim investment strategy meeting of Guolian Minsheng | |
| May 28, 2025 | On-site communication | Investors invited to the 2025 interim listed company exchange meeting of Everbright Securities | |
| May 29, 2025 | On-site communication | Investors invited to the 2025 capital market forum of CITIC Securities | |
| June 5, 2025 | On-site communication | Investors invited to the 2025 interim strategy meeting of Huatai Securities | |
| June 5, 2025 | On-site communication | Investors invited to the 2025 interim strategy meeting of Guotai Haitong | |
| June 12, 2025 | On-site communication | Investors invited to the 2025 capital market summer strategy meeting of Shenwan Hongyuan | |
| June 24, 2025 | On-site communication | Investors invited to the 2025 interim strategy meeting of Sinolink Securities | |
| June 26, 2025 | On-site communication | Investors invited to the 2025 interim strategy meeting of Eastmoney Securities |
Interim Report 2025 DFZQ
85
Section IV Corporate Governance, Environment and Society
During the Reporting Period, the Company maintained communication with securities dealer analysts, institutional investors for research surveys and roadshows were as follows:
| Date of event | Method of communication | Communication targets | Content of communication |
|---|---|---|---|
| January to June 2025 | on-site communication, teleconferencing, etc. | Guotai Haitong Securities, Shenwan Hongyuan Securities, China Merchants Securities, Industrial Securities, China Dragon Securities, Caitong Securities, Sinolink Securities, Western Securities, Goldman Sachs, Citigroup, BofA Securities, CLSA, Bloomberg, China Southern Asset Management, Bosera Asset Management, Harvest Fund, China Life Asset, New China Asset, Point 72 Asset, etc. | The Company’s operation, business characteristics and highlights, long-term development strategy, etc. |
(vi) Information disclosure
The Company properly carried out information disclosure and was able to disclose relevant information in a manner that was true, accurate, complete, timely and fair and in strict accordance with the applicable laws, regulations and regulatory documents in the PRC and Hong Kong where its shares are listed. According to relevant information disclosure rules such as the Regulatory Guidelines for Listed Companies No. 5 – Insider Registration and Management System of Listed Companies and the Rules on the Supervision of Funds Raised by Listed Companies issued by the CSRC and the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange, the Guidelines of Shanghai Stock Exchange of Self-Regulation for Listed Companies No. 2 – Management of Information Disclosure and Guidelines of Shanghai Stock Exchange of Self-Regulation for Listed Companies No. 5 – Transactions and Related Transactions issued by the SSE, the Company reviewed its management system and adjusted relevant regulations and rules of the Company accordingly.
Interim Report 2025 DFZQ
Section IV Corporate Governance, Environment and Society
IV. PROPOSAL ON PROFIT DISTRIBUTION OR CONVERSION OF CAPITAL RESERVE FUND INTO SHARE CAPITAL
Proposal on profit distribution or conversion of capital reserve fund into share capital during the first half of year
| Whether to distribute or transfer or not | Yes |
|---|---|
| Dividend for every 10 shares (RMB) (inclusive of tax) | 1.20 |
Explanation on the Proposal on Profit Distribution or Conversion of Capital Reserve Fund into Share Capital
Pursuant to the authorisation granted at the Company's 2024 annual general meeting in respect of the distribution of the interim profit for 2025, the eighth meeting of the sixth session of the Board considered and approved the 2025 Interim Profit Distribution Proposal of the Company. For the first half of 2025 profit distribution plan of the Company: Based on the total share capital of the Company on the record date of the dividend distribution, a cash dividend of RMB1.20 (inclusive of tax) for every 10 shares will be distributed to A Shareholders and H Shareholders who are registered on the record date of the dividend distribution. This profit distribution plan is not subject to approval by the general meeting. The Company will distribute the 2025 interim cash dividend within two months from the date of the Board meeting.
In accordance with the relevant provisions of the Guidelines of Shanghai Stock Exchange of Self-Regulation for Listed Companies No. 7 – Repurchase of Shares, the A shares of the Company in the designated securities account for repurchase of the Company shall not be entitled to dividend distribution. Based on the Company's total share capital of 8,496,645,292 shares as at June 30, 2025, after deducting 61,546,481 shares in the repurchase account as at the disclosure date of the report, the total amount of cash dividends to be distributed is RMB1,012,211,857.32, accounting for 29.23% of the net profit attributable to the owners of the Parent Company in the first half of 2025 consolidated statements.
The Company will disclose in a separate announcement, among other things, further details regarding the expected timetable and arrangement for closure of register of H Shareholders in respect of the proposed payment of interim dividend for the purpose of ascertaining shareholders' entitlement to the payment of interim dividend by the Company.
Interim Report 2025 DFZQ
Section IV Corporate Governance, Environment and Society
V. THE COMPANY'S SHARE INCENTIVE SCHEME, EMPLOYEE STOCK OWNERSHIP PLAN OR OTHER EMPLOYEE INCENTIVES AND THEIR IMPACTS
H Share Employee Stock Ownership Plan of the Company
1. Overview of the H Share employee stock ownership plan
In order to establish and improve the benefit co-sharing mechanism between employees and the Company, improve the cohesion among employees and the competitiveness of the Company, attract and retain quality talents, promote the long-term, sustainable and healthy development of the Company, and maximize the interests of the Company, shareholders and employees, the Company implemented the H Share employee stock ownership plan in 2020.
At the 20th meeting of the 4th session of the Board, the 15th meeting of the 4th session of the Supervisory Committee and the 2020 first extraordinary general meeting, the Proposal in relation to the Employee Stock Ownership Plan (Draft) and Abstracts of 東方證券股份有限公司 and the Proposal in relation to the Authorization to the Board to Fully Handle Matters Related to the Employee Stock Ownership Plan were considered and approved. On July 7, 2020, the 4th plenary meeting of the third session of the employee congress of the Company was convened, at which the Proposal in relation to the Employee Stock Ownership Plan (Draft) and Abstracts of 東方證券股份有限公司 was considered and approved. The actual number of participants in the employee stock ownership plan of the Company is 3,588. The total amount of funds raised is RMB316,657,000, of which the subscription amount of Directors, Supervisors and senior management personnel of the Company accounts for 8.27% of the total amount of the employee stock ownership plan. The funds of the employee stock ownership plan shall be paid by the employees with their lawful remunerations, self-raised funds and other sources as permitted under the laws and regulations. China Universal was entrusted to manage the employee stock ownership plan as the asset management agency.
On July 23, 2020, the first meeting of the holders of the Company's employee stock ownership plan was convened through online voting, at which the Proposal on the Election of Members of the Employee Stock Ownership Plan Management Committee of 東方證券股份有限公司 and the Proposal on Authorizing the Employee Stock Ownership Plan Management Committee of 東方證券股份有限公司 to Handle Matters Related to the Employee Stock Ownership Plan were considered and approved.
Interim Report 2025 DFZQ
Section IV Corporate Governance, Environment and Society
The H Share employee stock ownership plan of the Company has completed the acquisition of all subject shares and relevant transfer and registration on December 24, 2020. In particular, “DFZQ ESOP Single Asset Management Scheme No. 1” and “DFZQ ESOP Single Asset Management Scheme No. 2” acquired a total of 65,906,800 H Shares of the Company in the secondary market, accounting for 0.942% of the total share capital of the Company and 6.417% of the H Share capital of the Company, at total consideration of RMB0.30 billion, and the remaining fund will be used for liquidity management.
According to the Employee Stock Ownership Plan of 東方證券股份有限公司, the lock-up period of the subject shares purchased under the H Share employee stock ownership plan of the Company shall be 12 months, which expired on December 24, 2021. The Company’s H Share employee stock ownership plan shall have a term of 5 years commencing from the date of consideration and approval of this Employee Stock Ownership Plan at the general meeting of the Company (July 13, 2020). The term of the Employee Stock Ownership Plan may be extended upon consideration at a meeting of the holders of the Employee Stock Ownership Plan and submission to the Board of the Company for approval. If the term of the Employee Stock Ownership Plan is not validly extended upon expiry, the Employee Stock Ownership Plan shall be terminated automatically.
- Total number of shares held under the employee stock ownership plan during the Reporting Period and as a percentage of the total share capital of the Company
The H Share employee stock ownership plan has expired and terminated on July 12, 2025, and no longer holds any H Shares of the Company.
- Sources of funds for implementation of the plan during the Reporting Period
The funds of the employee stock ownership plan shall be paid by the employees with their lawful remunerations, self-raised funds and other sources as permitted under the laws and regulations.
- Change of asset management agency during the Reporting Period
During the Reporting Period, there was no change of asset management agency of the Company’s employee stock ownership plan.
Interim Report 2025 DFZQ
Section IV Corporate Governance, Environment and Society
-
Disposal of shares held by the holders of the employee stock ownership plan when they resign, retire, decease, or are no longer suitable for participating in the stock ownership plan or other disposal other than those mentioned above
During the Reporting Period, the Company acted strictly in accordance with the provisions of the employee stock ownership plan in the event that the holders become unsuitable to participate in the employee stock ownership plan during the validity period of the plan. -
Changes in the composition of the management committee of the employee stock ownership plan
During the Reporting Period, there was no change in the composition of the management committee of the employee stock ownership plan of the Company.
The Company had no other incentive measures during the Reporting Period.
VI. INFORMATION ON CONSOLIDATING AND EXPANDING THE RESULTS OF POVERTY ALLEVIATION AND RURAL REVITALIZATION
During the Reporting Period, the Company actively responded to the national call and the latest policy requirements, including the Securities Association of China of "work on further strengthening rural revitalization by the securities industry", thoroughly implemented the spirit of relevant documents, deeply consolidated the achievements in poverty alleviation and promoted rural revitalization in various aspects such as industry assistance, public welfare assistance and consumption-driven support.
As at the end of the Reporting Period, the Company and its subsidiaries had signed twinning assistance agreements with 50 areas, including Morin Banner in Inner Mongolia, Wufeng County in Hubei Province, Funing County in Yunnan Province and Qiongzhong County in Hainan Province to continuously facilitate rural revitalization. During the Reporting Period, the Company and its subsidiaries invested a total of approximately RMB2.3459 million in consolidating poverty alleviation results and promoting rural revitalization and carried out a total of 21 projects of various types, including 1 industry assistance project, 1 financial assistance project, 3 public welfare assistance projects, 4 consumption assistance projects and 11 knowledge-based assistance project and 1 cultural assistance project.
In the future, the Company will continue to implement the rural revitalization strategy, continuously improve the mechanism and processes of assistance work, proactively facilitate full rural revitalization and promote sustainable development in rural areas through various means such as industry assistance, financial assistance, educational assistance and ecological assistance.
Interim Report 2025 DFZQ
Section V Significant Events
I. PERFORMANCE OF UNDERTAKINGS
(i) Undertakings made by the Company's de facto controller, shareholders, related parties, acquirers, the Company and other related undertakers during the Reporting Period or subsisting in the Reporting Period
| Background of undertaking | Type of undertaking | Covenantor | Content of undertaking | Date of undertaking | Subject to expiry | Validity period of undertaking | Whether strictly performed in a timely manner | If not performed in a timely manner, describe the specific reasons | If not performed in a timely manner, describe plans in the next step |
|---|---|---|---|---|---|---|---|---|---|
| Undertakings in relation to initial public offering | To solve the problem of industry competition | Shenergy Group | Shenergy Group has issued the Commitment Letter of Avoiding industry competition to the Company and undertook that it and the companies and enterprises under its direct or indirect control would not participate in any form of business or operation that compete or might compete with the Company and its subsidiaries. | February 8, 2014 | Yes | After the public offering and listing of A Shares of the Company | Yes | / | / |
Interim Report 2025 DFZQ
Section V Significant Events
| Background of undertaking | Type of undertaking | Covenantor | Content of undertaking | Date of undertaking | Subject to expiry | Validity period of undertaking | Whether strictly performed in a timely manner | If not performed in a timely manner, describe the specific reasons | If not performed in a timely manner, describe plans in the next step |
|---|---|---|---|---|---|---|---|---|---|
| To solve the problem of related party transactions | Shenergy Group | Shenergy Group and the companies and enterprises under its direct or indirect control will take every effort to avoid and regulate related party transactions with DFZQ and its subsidiaries; for those related party transactions that cannot be avoided or are necessary, the price of the related party transactions will be determined in accordance with the principles of fairness, openness and equity to ensure the fairness of the related party transactions. If Shenergy Group breaches the above undertaking to regulate related party transactions with the issuer, Shenergy Group shall cease to receive shareholders' dividends from the issuer from the date of the breach of the relevant undertaking and shall not transfer its shares in the issuer until the corresponding measures have been taken and implemented in accordance with the above undertaking; if the issuer or other investors suffer loss as a result of the failure to comply with the undertaking to regulate the related party transactions, compensation shall be made to the issuer or other investors in accordance with relevant laws. | February 8, 2014 | Yes | After the public offering and listing of A Shares of the Company | Yes | / | / |
Interim Report 2025 DFZQ
Section V Significant Events
| Background of undertaking | Type of undertaking | Covenantor | Content of undertaking | Date of undertaking | Subject to expiry | Validity period of undertaking | Whether strictly performed in a timely manner | If not performed in a timely manner, describe the specific reasons | If not performed in a timely manner, describe plans in the next step |
|---|---|---|---|---|---|---|---|---|---|
| Undertakings in relation to refinancing | To remediate immediate return | Shenergy Group | The undertaking regarding the effective implementation of the immediate return remedial measures for the Company's the Rights Issue. Shenergy Group has undertaken not to interfere with the Company's operation and management activities beyond its authority and not to embezzle the interests of the Company. | March 24, 2021 | Yes | During the period when Shenergy Group remains as the largest shareholder | Yes | / | / |
II. NO APPROPRIATION OF FUNDS ON A NON-OPERATING BASIS BY THE COMPANY'S CONTROLLING SHAREHOLDER OR OTHER RELATED PARTIES HAS OCCURRED DURING THE REPORTING PERIOD.
III. DURING THE REPORTING PERIOD, THE COMPANY DID NOT PROVIDE ANY NON-COMPLIANCE GUARANTEE.
Interim Report 2025 DFZQ
Interim Report 2025 DFZQ
Section V Significant Events
IV. MATERIAL LITIGATIONS AND ARBITRATIONS
During the Reporting Period, the Company was not involved in any material litigations or arbitrations that involves claims of over RMB10 million and accounting for more than 10% of the absolute value of the Company's net assets as audited in the latest financial statements, which shall be disclosed in accordance with the requirements under the SSE Listing Rules. The Company did not have matters commonly questioned by the media during the Reporting Period.
Currency: RMB
| Plaintiff | Defendant | Category of the litigation and arbitration | Reason | Amount involved | Progress |
|---|---|---|---|---|---|
| DFZQ | Qingdao Yaxing Industry Co., Litigation Ltd. (青島日産實業有限公司) and its guarantor, Qingdao Yiweide Trading Co., Ltd. (青島恒維德商貿有限公司) | Ltd. conducted the share collateralized repurchase transaction with the Company by the shares of "Datong Tui (大通道)" (formerly known as "Shenzhen Capstone (深大通)" held by it since March 2016. Such transaction was guaranteed by Qingdao Yiweide Trading Co., Ltd.(青島恒維德商貿有限公司) by providing real estate as collateral. The above-mentioned transaction has been in default. | Principal of RMB653 million and interest, default penalty, and other expenses for the realization of creditors' rights are payable but unpaid. | According to the enforcement certificates issued by the notary public's office to Qingdao Yaxing, an enforcement case was filed in the Shenzhen Intermediate Court in August 2022. In October 2022, the Shenzhen Intermediate Court issued a disposal ruling. In November 2022, Qingdao Yaxing filed an objection to the enforcement, after which the court agreed the Company to continue to enforcement on the guarantee provided by the Company on its own credit. In January 2023, the pledged shares were listed for auction. In February 2023, the first auction of the pledged shares failed. In June 2023, the court ordered a second auction of the pledged shares. Subsequently, the second auction of the pledged shares failed. In July 2023, the Shenzhen Intermediate Court ruled to terminate the enforcement procedure, and subsequently the application for resumption of enforcement will be made upon the completion of the board transfer. |
In July 2023, the Company filed a lawsuit with the Shanghai Financial Court regarding the real estate mortgaged by the guarantor, Qingdao Yiweide Trading Co., Ltd. In August 2024, the Company received a favorable first instance judgment. The defendant applied for an appeal subsequently. In October 2024, the Shanghai Higher People's Court delivered the second instance judgment, which upheld the original judgment. An enforcement case was filed in January 2025. In May 2025, the Company received a ruling on the realization of the mortgaged land.
Section V Significant Events
| Plaintiff | Defendant | Category of the litigation and arbitration | Reason | Amount involved | Progress |
|---|---|---|---|---|---|
| DFZQ | Zhu Lanying and Qingdao Yiweide Trading Co., Ltd. (青島信義德商貿有限公司), the guarantor | Litigation | Zhu Lanying conducted the share collateralized repurchase transaction with the Company by the shares of "Datong Tui (大通底)" (formerly known as "Shenzhen Capstone (深大通)" held by her since March 2016. Such transaction was guaranteed by Qingdao Yiweide Trading Co., Ltd. by providing real estate as collateral. The abovementioned transaction has been in default. | Principal of RMB346 million and interest, default penalty, and other expenses for the realization of creditors' rights are payable but unpaid. | According to the enforcement certificates issued by the notary public's office to Zhu Lanying, an enforcement case was filed in the Shenzhen Intermediate Court in September 2022. In June 2023, the pledged shares delisted. In November 2023, the Court ruled to terminate the enforcement procedure as the pledged shares were still at the evaluation stage and could not be disposed of and there were no property clues available for enforcement. Subsequently, the application for resumption of execution will be made upon the completion of the board transfer. |
In July 2023, the Company filed a lawsuit with the Shanghai Financial Court regarding the real estate mortgaged by the guarantor, Qingdao Yiweide Trading Co., Ltd. In August 2024, the Company received a favorable first instance judgment. The defendant applied for an appeal subsequently. In October 2024, the Shanghai Higher People's Court delivered the second instance judgment, which upheld the original judgment. An enforcement case was filed in January 2025. In May 2025, the Company received a ruling on the realization of the mortgaged land. |
Interim Report 2025 DFZQ
95
Section V Significant Events
| Plaintiff | Defendant | Category of the litigation and arbitration | Reason | Amount involved | Progress |
|---|---|---|---|---|---|
| DFZQ | Jiang Jian and Qingdao Yiwede Trading Co., Ltd. (青島信義德商貿有限公司), the guarantor | Litigation | Jiang Jian conducted the share collateralized repurchase transaction with the Company by the shares of "Datong Tui (大通道)" (formerly known as "Shenzhen Capstone (深大通)") held by him since June 2016, with Qingdao Yiweide Trading Co., Ltd. providing property mortgage guarantees. The above-mentioned transaction has been in default. | Principal of RMB261 million and interest, default penalty, and other expenses for the realization of creditors' rights are payable but unpaid. | According to the enforcement certificates issued by the notary public's office to Jiang Jian, an enforcement case was filed in the Shenzhen Intermediate Court in September 2022. In February 2023, the Company received the auction ruling. In June 2023, the pledged stocks were delisted. In December 2023, the Court ruled to terminate the enforcement procedure as the pledged shares were still at the evaluation stage and could not be disposed of and there were no property clues available for enforcement. Subsequently, the application for resumption of execution will be made upon the completion of the board transfer. |
| In July 2023, the Company filed a lawsuit with the Shanghai Financial Court regarding the properties mortgaged by the guarantor Qingdao Yiweide Trading Co., Ltd. In August 2024, a first instance judgment in favor of the Company was received, which was subsequently appealed by the counterparty. The Shanghai High People's Court delivered a second-instance judgment in October 2024, which upheld the original verdict. The enforcement case was filed in January 2025, and in May 2025, the Company received the ruling on the realization of the mortgaged land. |
Interim Report 2025 DFZQ
Section V Significant Events
| Plaintiff | Defendant | Category of the litigation and arbitration | Reason | Amount involved | Progress |
|---|---|---|---|---|---|
| DFZQ | Zhuhai Zhongzhu Group Co., Ltd. (珠湾中珠集團股份有限公司) and Zhuhai S.E.Z. Dezheng Group Co., Ltd. (珠湾經濟特區德正集團有限公司), the guarantor | Litigation | Zhuhai Zhongzhu Group Co., Ltd. conducted the share collateralized repurchase transaction with the Company by the shares of "ST Zhongzhu (ST 中珠)" (formerly known as "Zhongzhu Medical (中珠醫療)") held by it since November 2017, which was guaranteed by Zhuhai S.E.Z. Dezheng Group Co., Ltd. with its immovable assets. The above-mentioned transaction has been in default. | Principal of RMB461 million and interest, default penalty, and other expenses for the realization of creditors' rights are payable but unpaid. | In April 2021, the lawsuit was filed in the Shanghai Financial Court. In February 2022, a first instance judgment in favor of the Company was received. In March 2022, the defendant filed an appeal. In September 2022, the Shanghai High Court issued the second instance judgment, which upheld the original verdict. In November 2022, the enforcement case was accepted by the Shanghai Financial Court. In April 2023, the disposal of all the pledged shares on the new bulk trading platform was completed. In June 2023, the Company received the enforcement payment. In August 2023, the auction of the collateral was initiated, but after multiple rounds of unsuccessful auctions, the Company received the final ruling at the end of February 2024. In May 2024, an application was made to the Shanghai Financial Court for resumption of enforcement. In February 2025, the Company continued to communicate with the Court to promote matters related to the disposal of mortgaged properties. |
| Guangdong Guangzhou Daily Media Co., Ltd. (廣東廣州日報傳媒股份有限公司) | DFZQ | Litigation | Orient Investment Banking served as the independent financial advisor for Guangdong Guangzhou Daily Media Co., Ltd.'s acquisition of 100% equity in Shanghai Champs Advertising Media Co., Ltd. (上海香榭麗廣告傳媒股份有限公司) in 2014. Guangzhou Daily Media filed a lawsuit on the grounds of service contract disputes. | It returned financial advisory fees, compensation for losses, and legal costs totaling RMB328 million, along with related litigation expenses. | In November 2024, the Company received the litigation documents from the Shanghai Financial Court. The Company has engaged a litigation attorney to prepare for the defense, and as of the end of the Reporting Period, the Company has not yet received a notice of trial. |
Interim Report 2025 DFZQ
97
Section V Significant Events
| Plaintiff | Defendant | Category of the litigation and arbitration | Reason | Amount involved | Progress |
|---|---|---|---|---|---|
| DFZQ | Xinjiang Maiquer Group Co., Ltd. (新疆泰唐霸集團有限責任公司) and Xinjiang Hengjia Property Co., Ltd. (新疆恒住房地產開發有限公司), the guarantor | Litigation | Xinjiang Maiquer Group Co., Ltd. conducted the share collateralized repurchase transaction with the Company by the shares of "Maiquer (泰唐霸)" held by it since March 2015, which was guaranteed by Xinjiang Hengjia Property Co., Ltd. through a mortgage over its real estate assets. The above-mentioned transaction has been in default. | Principal of RMB303 million and interest, default penalty, and other expenses for the realization of creditors' rights are payable but unpaid. | The lawsuit was filed in the Shanghai Financial Court in August 2022. In July 2023, the court ruled in favour of the Company in the first instance judgment. The counterparty appealed in August 2023. In September 2023, a second instance judgment was filed in Shanghai High Court. In November 2023, the Company received a second instance judgment: the appeal was dismissed, upholding the original judgment, and the first instance judgment has come into effect. In December 2023, the case was filed with enforcement procedure. From February to March 2024, as per the court's request, coordinated lawyers conducted on-site due diligence on the mortgaged real estate under the name of the party subject to enforcement and submitted newly retrieved pledged shares inquiry receipts to the court. In May 2024, the Company received the ruling on the auction of the shares involved in the case. From July to September 2024, the pledged shares were successfully auctioned. As the mortgaged immovable assets under Maiquer's name were collectively disposed of by the Changji Intermediate Court, in October 2024, the Company submitted an application for participation in the distribution to both the Changji Intermediate Court and the Shanghai Financial Court. In November 2024, the enforcement payments from the auction transactions of the pledged shares were received. In December 2024, a final ruling was received. The Company proposed to apply for the resumption of execution to advance the disposal of the mortgaged immovable assets under Hengjia's name and to follow up on the valuation and distribution of the mortgaged immovable assets under Maiquer's name. In April 2025, the Company submitted an application for resumption of enforcement to the Shanghai Financial Court. |
Interim Report 2025 DFZQ
Section V Significant Events
| Plaintiff | Defendant | Category of the litigation and arbitration | Reason | Amount involved | Progress |
|---|---|---|---|---|---|
| DFZQ | Shanghai Yutai Dengshuo Investment Center (Limited Partnership) (上海鄞泰昱砺份資中心(有限合夥)) and the guarantors, being Shanghai Fuxing Industrial Group Co., Ltd. (上海阜興實業集團有限公司) and Shanghai Yutai Investment Management Co., Ltd. (上海鄞泰份資管理有限公司) | Litigation | Shanghai Yutai Dengshuo Investment Center (Limited Partnership) conducted the share collateralized repurchase transaction with the Company by the shares of "Blivex (保力新)" (formerly known as "Jianrui Woneng (堅瑞沃諾)") held by it in September 2016 and Shanghai Fuxing Industrial Group Co., Ltd. and Shanghai Yutai Investment Management Co., Ltd. provided the joint guarantee. The above-mentioned transaction has been in default. | Principal of RMB170 million and interest, default penalty, and other expenses for the realization of creditors' rights are payable but unpaid. | According to the enforcement certificates issued by the notary public's office to Yutai Dengshuo and Fuxing Industrial, the case was filed with enforcement procedure in Shanghai No.2 Intermediate People's Court in August 2018. By early 2020, partial repayment was enforced through the courts. In May 2024, the Company sent a petition to the Shanghai No.2 Intermediate People's Court for an enforcement objection. In March 2025, the Company confirmed the status of the enforcement objection with the judge of the Shanghai No.2 Intermediate People's Court. In March 2020, the Company filed a lawsuit against Shanghai Yutai Investment Management Co., Ltd. (上海鄞泰份資管理有限公司), the guarantor, in the Shanghai Financial Court in respect of the disposal of the underpaid part of the pledged shares. Due to the involvement of the principal debtors, Yutai Dengshuo and Fuxing Industrial, in other cases, the Shanghai Financial Court has adjourned the hearing of the Yutai Investment guarantee contract litigation. In June 2023, the guarantee contract litigation was assigned to the Jing'an District Court. |
Interim Report 2025 DFZQ
Section V Significant Events
| Plaintiff | Defendant | Category of the litigation and arbitration | Reason | Amount involved | Progress |
|---|---|---|---|---|---|
| DFZQ | Zeng Zhuo and Cai Xiaoru (蔡小弥), the guarantor | Litigation | Zeng Zhuo conducted the share collateralized repurchase transaction with the Company by the shares of "Xinning Logistics (新華物流)" held by him since July 2016, with Cai Xiaoru providing guarantee and stock pledge collateral. The above-mentioned transaction has been in default. | Principal of RMB166 million and interest, default penalty, and other expenses for the realization of creditors' rights are payable but unpaid. | In respect of the notarized transactions, according to the enforcement certificates issued by the notary public's office to Zeng Zhuo, the case was filed with enforcement procedure in Suzhou Kunshan District Court in November 2021. In November 2022, the Kunshan Court ruled to sell the pledged shares by auction. In December 2022, the auction was completed. From June 2023 to January 2024, the court successively granted a portion of enforcement payment to the Company. |
In respect of the unnotarized transactions, in November 2021, an application was filed with the Shenzhen Futian District Court to realise the security interest. In January 2022, the court ruled that the pledged shares be sold by auction and the Company has priority in repayment with the auction proceeds. In May 2022, the application for enforcement against Zeng Zhuo for realisation of security interest was filed with the Kunshan Court, and shall be handled together with the above case of enforcing the notarized debt instruments.
A lawsuit was filed against Cai Xiaoru, the guarantor in this case, regarding the stock pledge contract. The lawsuit was filed in the Shanghai Financial Court in August 2023. In August 2024, the court ruled in favour of the Company in the first instance judgment. In October 2024, the case was filed with enforcement procedure. In June 2025, the Shanghai Financial Court put up for auction on Taobao the stocks used by Cai Xiaoru as collateral: the judicial auction is scheduled to be held in July 2025.
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Section V Significant Events
| Plaintiff | Defendant | Category of the litigation and arbitration | Reason | Amount involved | Progress |
|---|---|---|---|---|---|
| DFZQ | Xu Leilei | Litigation | Xu Leilei conducted the share collateralized repurchase transaction with the Company by the restricted shares of "Roral Group" held by her since November 2016. The above-mentioned transaction has been in default. | Principal of RMB119 million and accrued interest, delayed interest, default penalty, liquidated damages, and other expenses for the realization of creditors' rights are payable but unpaid. | According to the enforcement certificates issued by the notary public's office to Xu Leilei, an enforcement case was filed in Beijing No. 3 Intermediate People's Court in October 2019. In December, an enforcement settlement agreement was reached between the Company and the party subject to enforcement. However, because of his/her failure to repay according to the agreement, the Company applied for resumption of execution in January 2020, and the Nanning Intermediate People's Court (the first sealing court for the pledged shares) temporarily did not transfer the right of disposal on the grounds that the first case had not been concluded. The case of first sealing involving the performance compensation dispute between Royal Group and Xu Leilei entered a retrial procedure in September 2020. The Company participated as a third-party defendant. In February 2021, the Nanning Intermediate People's Court ruled that the Company held a valid pledge right over the disputed shares, and Royal Group was entitled to claim cash compensation from Xu Leilei for the portion of shares it could not repurchase. Royal Group appealed the decision. In November 2021, the Guangxi High Court issued a second-instance judgment, stating that the Company's pledge right could not prevent Royal Group's request to repurchase the shares at RMB1. In December 2021, the Company applied for a retrial with the Supreme Court and filed an enforcement objection with the Nanning Intermediate People's Court regarding the refusal to transfer the execution. In July 2022, the Supreme Court issued a retrial ruling. Although the retrial application was dismissed on procedural grounds, the Supreme Court explicitly affirmed that the Company's pledge right took precedence over the creditor's right. In September 2022, the Company received a ruling from the Nanning Intermediate People's Court on the execution objection: the court, based on the Supreme Court's ruling, supported the Company and revoked the execution ruling in the case. In November 2022, Royal Group filed a petition for reconsideration of the execution objection ruling. |
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Section V Significant Events
| Plaintiff | Defendant | Category of the litigation and arbitration | Reason | Amount involved | Progress |
|---|---|---|---|---|---|
| In April 2023, the Guangxi High Court issued a reconsideration ruling on the execution objection, overturning the Nanning Intermediate People's Court's ruling in favor of the Company. In June 2023, the Company submitted materials for execution supervision to the Supreme Court regarding the reconsideration ruling. In April 2024, the Company received a Notice of Enforcement Supervision from the Supreme Court, indicating that the case had been assigned to the Enforcement Bureau of Guangxi High Court for further review, pending feedback on the results. In March 2025, Royal Group announced that the subject pledged shares held by Xu Leilei were compulsorily transferred to the Company's share repurchase account via court enforcement and would be submitted for cancellation procedures. Upon receipt of such information, the Company immediately filed an enforcement objection with the Nanning Intermediate People's Court and concurrently served CSDC with a notice stating its intention to raise an enforcement objection and demanding the cessation of cooperation in the unlawful share cancellation. In April 2025, Royal Group further announced that the subject pledged shares had been cancelled. In the same month, the Nanning Intermediate People's Court accepted the enforcement objection case. The Company also petitioned the Trial Division and the Enforcement Bureau of the Supreme Court respectively. In May 2025, the Supreme Court Enforcement Bureau notified the Company that the petition fell within the enforcement-related petition jurisdiction of the Nanning Intermediate People's Court and had been referred to its Enforcement Bureau for handling. |
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Section V Significant Events
| Plaintiff | Defendant | Category of the litigation and arbitration | Reason | Amount involved | Progress |
|---|---|---|---|---|---|
| DFZQ | Nantong Hongxiang Equity Investment Partnership (Limited Partnership) (南通泓荆县餐饮资金和企业) | Litigation | Nantong Hongxiang Equity Investment Partnership (Limited Partnership) conducted the stock-pledged repurchase transaction with the Company with the shares of "R Global 1 (R 现现 1)" (formerly known as "Shangying Global (商高现 1)") held by it since October 2016. The above-mentioned transaction has been in default. | Principal of RMB117 million and interest, default penalty, and other expenses for the realization of creditors' rights are payable but unpaid. | According to the enforcement certificates issued by the notary public's office to Nantong Hongxiang, an enforcement case was filed in the Shanghai Financial Court in December 2023. In March 2024, the Company received the enforcement ruling on the conversion of shares. In May 2024, the Shanghai Financial Court announced the auction of the pledged shares. In June 2024, the auction of pledged shares failed. In July 2024, a ruling on debt repayment with shares was received. In August 2024, the pledged shares were registered and transferred to the Company's name. In September 2024, the Company received a final ruling. In December 2024, the Company applied to the Shanghai Financial Court to add Nantong Hongxiang's general partner as the person subject to enforcement, holding them jointly and severally liable for the unpaid debts under this case; and applied to add two limited partners as persons subject to enforcement, holding them jointly and severally liable for repayment within the scope of their unpaid registered capital. Subsequently, the application for enforcement objection was accepted and filed. In February 2025, the Company received the ruling on adding persons subject to enforcement made by the Shanghai Financial Court. In June 2025, the Shanghai Financial Court reopened the enforcement case, included the three persons subject to enforcement in the list of persons subject to enforcement for breach of trust, imposed measures to restrict their high consumption, and initiated measures to investigate and control the properties under their names. |
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| Plaintiff | Defendant | Category of the litigation and arbitration | Reason | Amount involved | Progress |
|---|---|---|---|---|---|
| Orient Finance Holdings | China Vered Asset Management (Hong Kong) Limited (中雅資產管理)香港)有限公司) | Litigation | In 2016, Orient Finance Holdings invested in the SVF (Shareholder Value Fund) of China Prosperity (中民股東價值基金). In 2020, the fund's management underwent a change in shareholders, with China Prosperity Financial (中民金融) being renamed China Vered Financial (中雅金融), and the management entity changing from China Prosperity Asset Management (CPAM)(中民資管) to China Vered Asset Management (CVAM)(中雅資管). In May 2021, Orient Finance Holdings submitted a full redemption request to the fund manager, which CVAM failed to process. In June 2022, Orient Finance Holdings filed a lawsuit against CVAM for breaching the fund management contract by not fulfilling the full redemption request. | Principal of USD17.00 million is payable but unpaid. | In June 2022, Orient Finance Holdings formally filed a lawsuit against CVAM and the fund. Following a preliminary hearing in September 2023, the court ruled in favor of Orient Finance Holdings's request, ordering CVAM to submit an internal investigation report. CVAM has since appealed this court order. In March 2024, the appeal from CVAM was dismissed, and Orient Finance Holdings received the investigation report. As at the end of the Reporting Period, both parties had exchanged litigation documents, and Orient Finance Holdings proceeded with evidence collection and preparation of witness testimonies, with the formal trial scheduled to take place in 2026. |
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Section V Significant Events
V. VIOLATION OF LAWS AND REGULATIONS BY, PUNISHMENT ON AND RECTIFICATION OF THE LISTED COMPANY AND ITS DIRECTORS, SUPERVISORS, SENIOR MANAGEMENT, CONTROLLING SHAREHOLDERS AND DE FACTO CONTROLLER
The Company has no controlling shareholders or de facto controllers. During the Reporting Period, the Company and its Directors, Supervisors and senior management were not investigated by competent authorities, taken compulsory measures by judicial organs or discipline inspection departments, transferred to judicial authorities or investigated for criminal responsibilities, filed for investigation or administrative punishment by CSRC, banned from the market, recognized as inappropriate candidates, given major administrative punishment by other administrative departments such as environmental protection, safety supervision and taxation departments, or publicly condemned by stock exchanges.
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Section V Significant Events
During the Reporting Period, the Company was subject to administrative and regulatory measures taken by the CSRC as follows:
On June 3, 2025, the Hubei Securities Regulatory Bureau issued the Decision on Taking Regulatory Interview Measures against DFZQ Wuhan Sanyang Road Securities Branch ([2025] No. 39) (《關於對東方證券股份有限公司武漢三陽路證券營業部採取監管談話措施的決定》([2025]39號)). The decision stated out that Wuhan Sanyang Road Securities Branch failed to take effective measures to strictly regulate employees' business conduct. The former head of the branch, failed to perform his duties in accordance with the Company's regulations and illegally provided securities investment advice to clients. Certain employees were found to have illegally engaged in unauthorized securities transactions on behalf of clients. These acts violated the provisions of Item 4 of Article 6 of the Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies (Revised in 2020) (CSRC Order No. 166) (《證券公司和證券投資基金管理公司合規管理辦法(2020年修訂)》(證監會令第166號)). Accordingly, it was decided to take administrative regulatory measures of regulatory interview against the branch. The Company has taken disciplinary measures against the former head of the branch, including removal from office and demotion (he has since left the Company). Going forward, the Company will actively implement rectification measures, further strengthen the management of branch institutions, and effectively prevent compliance risks.
VI. EXPLANATIONS ON CREDIT WORTHINESS OF THE COMPANY AND ITS CONTROLLING SHAREHOLDERS AND DE FACTO CONTROLLER DURING THE REPORTING PERIOD
The Company's largest shareholder is Shenergy Group. During the Reporting Period, the Company maintained excellent creditworthiness and there were no cases such as non-performance of an effective court judgment or any large obligation or liability remaining unpaid passed its maturity date.
VII. MATERIAL RELATED PARTY/CONNECTED TRANSACTIONS
During the Reporting Period, the Group had no significant related party transactions and there were no non-operating related credits and debts.
The related party transactions set out in note 48 to the consolidated financial statements in this report do not constitute non-exempt connected transactions under Chapter 14A of the Hong Kong Listing Rules, except that the transactions entered into by the Company with Shenergy Group and its associates constitute continuing connected transactions under Chapter 14A of the Hong Kong Listing Rules and the Company has complied with the requirements of Chapter 14A of the Hong Kong Listing Rules. Apart from the continuing connected transactions above, the Company did not have any other connected transactions that are required to be disclosed under Chapter 14A of the Hong Kong Listing Rules during the Reporting Period.
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Section V Significant Events
(i) Related party transactions/non-exempt connected transactions related to daily operation
- Continuing related party/connected transactions under the Connected Transaction Framework Agreement
Reference is made to the announcement of the Company dated March 27, 2024 in relation to the continuing connected transactions. The Company entered into the continuing connected transactions under framework agreement with Shenergy Group on March 27, 2024 in relation to the Company and its subsidiaries and Shenergy Group and its associates for a period from January 1, 2024 to December 31, 2026. As at the date of this report, Shenergy Group holds approximately 26.63% of the issued share capital of the Company. According to Rule 14A.07(1) of the Hong Kong Listing Rules, Shenergy Group and its associates are connected persons of the Company. During the Reporting Period, the Company carried out related party/connected transactions in strict compliance with the "Proposal Regarding the Projected Routine Related Party Transactions of the Company in 2025" considered and approved at the 2024 annual general meeting and the "Resolution on the Signing of the 2024-2026 Connected Transaction Framework Agreement with Shenergy (Group) Company Limited" considered and approved at the 33rd meeting of the fifth session of the Board, and relevant terms are fair and reasonable and in the interests of the listed issuer and its shareholders as a whole. The relevant implementation is set out in the following table:
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Section V Significant Events
Unit: 0'000 Currency: RMB
| Type of transaction | Items of transaction | Brief description of related business or matters | Related party/ connected person | Projected annual cap | Actual amount |
|---|---|---|---|---|---|
| Securities and financial services | Total income received by the Group for the provision of securities and financial services to Shenergy Group and its associates | The Group obtains revenue in form of fees and commissions for providing services such as securities trading agency, futures, securities underwriting, financial advisory and other services. | 12,000.00 | 158.60 | |
| Total expenditures paid by the Group for receiving securities and financial services provided by Shenergy Group and its associates or providing Shenergy Group and its associates with securities and financial services | Interest paid by the Group for services, including securities trading agency, futures, repurchases, income certificates, etc., and fees for receiving insurance services. | Shenergy Group and its associates | 8,000.00 | 81.21 | |
| Purchase of goods and services | Total expenses paid by the Group for purchase of goods and services from Shenergy Group and its associates | The Group receives its services such as property management, gas supply and information services. | 6,000.00 | 1,394.22 |
Note: In the first half of 2025, the continuing related party/connected transactions between the Group and Shenergy Group and its associates accounted for a small proportion of the Company's similar transactions.
Pursuant to Rule 14A.71 of the Hong Kong Listing Rules, details of other transactions under the Connected Transaction Framework Agreement, including the content of the transactions, pricing policies, internal control measures, etc., are set out in 3 Transaction categories and pricing policies for related party/connected transactions and 4 Internal control measures for related party/connected transactions (including continuing connected transactions) in this section.
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2 Other related party/connected transactions
During the Reporting Period, the Company carried out related party transactions in strict compliance with the annual transaction amount caps stipulated in the “Proposal Regarding the Projected Routine Related Party Transactions of the Company in 2025” considered and approved at the 2024 annual general meeting. The relevant implementation is set out in the following table:
Unit: 0'000 Currency: RMB
| Items of transaction | Related parties | Brief description of related business or matters | Projected amount | Actual amount |
|---|---|---|---|---|
| Fee and commission income | China Universal Asset Management Company Limited | The Group obtains fee and commission income for providing services such as securities and futures brokerage, financial consulting, and securities underwriting to related parties. | Due to the difficulty in predicting transaction volume, calculations are based on actual amounts. | 831.84 |
| Chengtay Financial Leasing (Shanghai) Co., Ltd | 64.34 | |||
| Great Wall Fund Management Co., Ltd. | 11.55 | |||
| Related/Connected natural person | 3.57 | |||
| Interest income | Chengtay Financial Leasing (Shanghai) Co., Ltd | The Group obtains interest income for the period during which it holds the bonds issued by related parties. | Due to the difficulties in predicting the holding size and period of bonds, calculations are based on actual amounts. | 80.52 |
| Shanghai Construction Group Co., Ltd. | 60.42 | |||
| China Zheshang Bank Co., Ltd. | 44.50 | |||
| Ningbo Development & Investment Group Co., Ltd. | 0.24 | |||
| Investment gains | China Zheshang Bank Co., Ltd. | The Group obtains revenue from purchase of the securities, funds, insurance products, and others issued by related parties. | Due to the difficulties in predicting the size of and revenue from purchase of securities and various products, calculations are based on actual amounts. | 76.39 |
| APT Medical Inc. | 12.17 | |||
| Shanghai Construction Group Co., Ltd. | (38.21) |
Section V Significant Events
| Items of transaction | Related parties | Brief description of related business or matters | Projected amount | Actual amount |
|---|---|---|---|---|
| Other business revenue | Shenergy Hongkong Holding Limited | The Group obtains income for office services to related parties. | Due to the uncertainty of business development, calculations are based on actual amounts. | 158.11 |
| Interest expenses | Shanghai Construction Group Co., Ltd. | The Group pays interest on client funds deposited for securities and futures brokerage services provided to related parties, or interest for borrowings. | Due to the difficulties in predicting the size of borrowings and client funds, calculations are based on actual amounts. | 0.78 |
| China Universal Asset Management Company Limited | 0.10 | |||
| Related/Connected natural person | 0.71 | |||
| Business and management fees | State Grid Shanghai Municipal Electric Power Company | The Group pays fees for electricity and services purchased from related parties. | Due to the difficulty in predicting transaction volume, calculations are based on actual amounts. | 130.20 |
| China Zheshang Bank Co., Ltd. | 15.39 | |||
| China Universal Asset Management Company Limited | 0.10 |
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Section V Significant Events
| Items of transaction | Related parties | Brief description of related business or matters | Projected amount | Actual amount |
|---|---|---|---|---|
| Securities transaction | China Securities Credit Investment Co., Ltd. | 20,000.00 | ||
| Chengtay Financial Leasing (Shanghai) Co., Ltd | 15,999.76 | |||
| Great Wall Fund Management Co., Ltd. | The Group incurs investment costs on its holding of financial assets including stocks, bonds issued by related parties as at the end of the period. | Due to the uncertainty of the occurrence and size of business, calculations are based on actual amounts. | 3,456.86 | |
| China Pacific Life Insurance Co., Ltd. | 1,001.20 | |||
| China Pacific Insurance (Group) Co., Ltd. | 215.41 | |||
| Shanghai Construction Group Co., Ltd. | 105.88 | |||
| China Zheshang Bank Co., Ltd. | 18.86 | |||
| Shanghai Zhenhua Heavy Industries Co., Ltd. | 13.49 | |||
| APT Medical Inc. | 0.03 |
Notes:
(1) The inter-group transactions and the transactions with their parent companies of the subsidiaries who have a control relationship and are incorporated in the Company's consolidated financial statements were offset.
(2) In the first half of 2025, the related party transactions between the Group and other related parties accounted for a small proportion of the Group's similar transactions.
(3) The related/connected natural persons include: natural persons who directly or indirectly hold more than 5% of the shares of the listed company; Directors, Supervisors and senior management of the Company; close family members of the above-mentioned persons. All the applicable percentage ratios for aforesaid transactions calculated fall below the de minimis threshold as stipulated under Rule 14A.76(1) of the Hong Kong Listing Rules, these transactions therefore have been fully exempted from all of the reporting, annual review, announcement, circular and independent shareholders' approval requirements under Chapter 14A of the Hong Kong Listing Rules.
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Section V Significant Events
3 Transaction categories and pricing policies for related-party/connected transactions
The Group expects to conduct transactions involving securities and financial products and intermediary services with related parties/connected parties, specific transaction categories and pricing policies are as follows:
3.1 Securities and financial services
Securities and financial products services include but not limited to, the following services: securities, futures brokerage; sales of securities and financial products; underwriting and sponsoring; financial consultation; entrusted asset management; foreign exchange settlement and sales services; securities financing business; asset custody; insurance and securities and financial advisory and consultation, etc.
The pricing principles for securities and financial products services are determined by the parties based on the relevant service fees and in accordance with the relevant applicable laws and regulations with reference to the prevailing market rates. In particular:
- Securities and futures brokerage services – As the commission rate for brokerage services is generally transparent and standardized in the market, such rate shall be determined after arm’s length negotiations between the parties with reference to the requirements of relevant laws and regulations, the commission rate applicable to independent third parties and the estimated size of broker transaction;
- Securities and financial products sales services – Factors determining service fees include market prices, industry practices and total sales of financial products with reference to the level of fees charged by the Group for sales of products of similar types and nature;
- Underwriting and sponsoring services – The underwriting and sponsoring services market is highly competitive and the service rates and related fees are highly transparent and standardized. The service fees shall be determined after arm’s length negotiations between the parties with reference to the requirements of relevant laws and regulations, taking into account various factors, including prevailing market conditions, the size of the proposed issue, general market rates for recent issues of similar nature and size, and the fees applicable to independent third parties for similar services;
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-
Financial consultation services – The fees for financial consultation services are highly transparent and standardized in the market, and shall be determined after arm’s length negotiations between the parties with reference to the requirements of relevant laws and regulations, taking into account factors such as prevailing market conditions, the nature and scale of the transaction and the fees applicable to independent third parties for similar services;
-
Entrusted asset management services – The rates for asset management services are highly transparent and standardized in the market, and the service fees will be determined after arm’s length negotiations between the parties with reference to the requirements of relevant laws and regulations, taking into account factors such as the size of the entrusted assets, the complexity of providing specific services and the fees applicable to independent third parties for similar services;
-
Foreign exchange settlement and sale services – The transaction exchange rate for the settlement and sale of foreign exchange services shall be determined after arm’s length negotiations between the parties, taking into account factors such as the prevailing exchange rates in the interbank foreign exchange market, the scale of the transaction and the exchange rate standards applicable to independent third parties for similar services;
-
Securities financing services – The fees for securities financing business services shall be determined after arm’s length negotiations between the parties with reference to the fees applicable to independent third parties;
-
Asset custody services – The fees for asset custody services shall be determined by fair negotiations with reference to the prevailing market rates for transactions of similar type and scale;
-
Insurance services – The fees for insurance services are highly transparent and standardized in the market. Taking into account the prevailing market rates of comparable insurance schemes, the Company performs different procurement and bidding processes based on different target prices to determine the reasonableness of the prices, which are determined after arm’s length negotiations between the parties with reference to the market rates; and
-
Securities and financial advisory and consultation and other securities and financial services – The fees for such services shall be determined after arm’s length negotiations between the parties in accordance with relevant applicable laws and regulations, with reference to the prevailing market price, the nature of the transaction, the costs of services to each party and the fees applicable to independent third parties for similar services.
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Section V Significant Events
3.2 Securities and financial products transactions
Securities and financial products transactions include, but are not limited to, the following transactions: 1. transactions related to equity products, non-equity products and their derivatives: including, but not limited to, stocks, bonds, funds, trusts, wealth management products, asset management plans, asset securitization products, swaps, futures, options, forwards and other financial products; 2. transactions related to financing: the financing activities between financial institutions, including, but not limited to, interbank lending; repurchase; cross holding of debt instruments such as income certificates, short-term financing bills, subordinated bonds and corporate bonds; and 3. other securities and financial products transactions as permitted by the regulatory authorities.
The pricing policies for securities and financial products transactions shall be determined by mutual agreement in accordance with the requirements of relevant applicable laws and regulations and with reference to the prevailing market rates. In particular:
- Securities and financial products transactions are mainly conducted through the interbank bond market and exchanges (including exchange-traded bond markets and futures exchanges). The pricing of such transactions is subject to relevant laws and regulations and under strict supervision and shall be conducted at prevailing market prices.
The subscription of securities and financial products is conducted in accordance with the subscription price and conditions of the products; on-market transactions of securities and financial products shall be conducted at the then applicable market prices or market rates of that type of securities and financial products; the over-the-counter ("OTC") and other transactions of securities and financial products shall be conducted by mutual negotiation based on the then applicable market price or market rates for that type of securities and financial products; if there is no prevailing market price or market rate applicable for that type of securities and financial products, the price or rate for that transaction shall be the price or rate negotiated by both parties in accordance with the arm's length principle.
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Section V Significant Events
- For borrowing and lending among financial institutions, transactions shall be conducted with reference to the Shanghai Interbank Offered Rate at the prevailing rates quoted in the interbank money market, and pricing shall comply with relevant laws and regulations and be subject to strict supervision.
The financing-related transactions of the Group are negotiated and determined by both parties based on the then applicable market rates and prices of independent transaction parties of that type.
3.3 Purchase of goods and acceptance of services
The purchase of goods and acceptance of services include, but are not limited to, the following services: receiving goods and services such as electricity, town gas, natural gas, gas stoves, gas appliances and gas kitchen equipment; and receiving property management, gas transmission and distribution, gas project planning, design and construction, labor services, research and consultancy, training, lease of property and other services.
The pricing basis for the purchase of goods and acceptance of services is determined after arm's length negotiations in accordance with the requirements of relevant applicable laws and regulations with reference to the prevailing market prices and on normal commercial terms. The Group has reached an agreement in principle with Shenergy Group and its associates on relevant pricing mechanism and the prices will be determined as follows: 1. Should there be a government pricing directive, the government directive price shall prevail; or 2. In the absence of any government pricing directive currently applicable, the government directive price previously promulgated by the competent government authority shall be adopted as the basic price and adjusted with reference to the procurement or service costs of Shenergy Group and its associate; the price as adjusted by item 2 above shall be fair and reasonable.
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Section V Significant Events
4 Internal control measures for related party/connected transactions (including continuing connected transactions)
The Group has formulated internal guidelines and policies on related party/connected transactions which provide detailed regulations on key aspects such as identification, initiation, pricing, decision-making and disclosure of related party/connected transactions and set out the approval procedures for related party/connected transactions.
The terms of transactions (including pricing terms) of the proposed securities and financial services, securities and financial products transactions and purchase of goods and services shall be similar to those provided by/available to independent third parties for similar services and shall be subject to the same internal selection, approval and monitoring procedures and pricing policies as those applicable to independent third parties.
The departments or subsidiaries of the Company that conducted the related party/connected transactions shall review the necessity, reasonableness, and fairness of the pricing of the related party/connected transactions, and are responsible for monitoring whether the actual transaction amount exceeds the annual cap, and properly maintaining and storing any documents and records related to related party/connected transactions; the compliance department of the Company reviews the compliance of the proposed related party/connected transactions; the Board office, the planned financial management department and other relevant departments of the Company regularly compile the data to ensure that the actual amount does not exceed the annual cap and remind relevant departments to manage and control the related party/connected transactions; the audit department of the Company conducts annual audit on the actual related party/connected transactions.
The independent non-executive Directors and auditors of the Company will review the continuing related party/connected transactions of the Company on an annual basis, and the Board (including the independent non-executive Directors) and Supervisory Committee shall confirm that the terms of the transactions are fair and reasonable and on normal commercial terms or better terms in the ordinary course of business of the Group and in the interests of the Company and the shareholders as a whole. The Company's auditors shall confirm that the continuing connected transactions (1) have been approved by the Board of Directors of the listed issuer; (2) have been conducted in accordance with the pricing policy of the listed issuer group in all material respects; (3) have been conducted in accordance with the agreements of relevant transactions in all material respects; and (4) have not exceeded the caps.
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Section V Significant Events
(ii) During the Reporting Period, the Company had no related party/connected transactions incurred as a result of acquisition or disposal of assets or equity interests.
(iii) During the Reporting Period, the Company had no material related party/connected transactions in relation to joint external investment.
(iv) During the Reporting Period, the Company had no credits and debts with related/connected parties.
(v) During the Reporting Period, there was no financial business between the Company and related/connected financial companies, the Company's controlling financial companies and related/connected parties.
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Section V Significant Events
VIII. MATERIAL CONTRACTS AND PERFORMANCE
(i) Custody, contracting and leasing matters
During the Reporting Period, the Company had no material custody, contracting or leasing matters.
(ii) Material guarantees which have been performed and not yet been performed during the Reporting Period
Unit: 100 million Currency: RMB
External guarantees of the Company (excluding guarantees to its subsidiaries)
Total amount of guarantees provided during the Reporting Period
(excluding guarantees for subsidiaries) 0.00
Total balance of guarantees provided at the end of the Reporting Period (A) (excluding guarantees for subsidiaries) 0.00
Guarantees provided by the Company for subsidiaries
Total amount of guarantees provided for subsidiaries during the Reporting Period 22.91
Total balance of guarantees provided for subsidiaries at the end of the Reporting Period (B) 149.70
Total amount of guarantees provided by the Company (including those provided for subsidiaries)
Total amount of guarantees (A+B) 149.70
Percentage of total guarantees over net assets of the Company (%) 18.39
Including:
-
Amount of guarantees provided for shareholders, de facto controllers and their related parties (C) 0.00
-
Amount of debt guarantees directly or indirectly provided for parties with gearing ratio exceeding 70% (D) 149.70
-
Amount of total guarantees exceeding 50% of net assets (E) 0.00
-
Total amount of above three types of guarantees (C+D+E) 149.70
Explanations on outstanding guarantees subject to joint liabilities
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Unit: 100 million Currency: RMB
Explanations on guarantees
As at the end of the Reporting Period, the Company and its wholly-owned subsidiaries provided guarantees for its wholly-owned subsidiaries was RMB14.970 billion. Details of the guarantees are as follows:
- Orient Finance Holdings, a wholly-owned subsidiary of the Company, provided guarantee for the credit facility of USD30 million entered into between Orient Securities International, a wholly-owned subsidiary of Orient Finance Holdings, and Ping An Bank.
- The Company provided guarantee for the credit facility of USD65 million entered into between Orient Finance Holdings, a wholly-owned subsidiary of the Company, and Nanyang Commercial Bank Ltd.
- The Company provided full guarantee for the principal and interest of USD300 million bonds issued by Orient Zhisheng Limited, a wholly-owned subsidiary of Orient Finance Holdings, a wholly-owned subsidiary of the Company.
- Orient Finance Holdings, a wholly-owned subsidiary of the Company, provided a guarantee of up to USD500 million for the transactions conducted by Orient Securities International, its wholly-owned subsidiary, under the Global Master Repurchase Agreement (GMRA)/International Swaps and Derivatives Association (ISDA) Agreement.
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Section V Significant Events
Unit: 100 million Currency: RMB
-
Orient Finance Holdings, a wholly-owned subsidiary of the Company, provided a guarantee of up to USD150 million for the transactions conducted by Orient International Investment Products Limited, its wholly-owned subsidiary, under the Global Master Repurchase Agreement (GMRA)/International Swaps and Derivatives Association (ISDA) Agreement.
-
Orient Finance Holdings, a wholly-owned subsidiary of the Company, provided a guarantee of up to USD1 billion for Orient International Investment Products Limited, its wholly-owned subsidiary, to issue structured notes.
Note: The amount of guarantees denominated in USD was converted at the spot exchange rate of USD1 to RMB7.1586 as at the end of June 2025.
(iii) During the Reporting Period, the Company had no other disclosable material contracts which were not disclosed.
Section V Significant Events
IX. DESCRIPTION OF OTHER SIGNIFICANT EVENTS
(i) Implementation assessment report on “corporate value and return enhancement” action plan
In the first half of 2025, the Company actively implemented the requirements under the action plan of “corporate value and return enhancement” and effectively carried out key measures with a focus on improving operational quality and efficiency, enhancing shareholder returns, optimizing investor relations management, and strengthening the quality of information disclosure with relatively good results achieved.
The Company focuses on building a first-class modern investment bank and steadily promoted the implementation of its new three-year strategic plan. With the focus on the three major business systems of comprehensive wealth management, comprehensive investment banking and comprehensive institutional business, it adhered to a development path of differentiation and specialization and further advanced business transformation and upgrading, promoting the coordinative development in collectivization, digitalization, and internationalization. By utilizing the dual drivers of steady operations and quality improvement and efficiency enhancement, the Company achieved sustained good performance. For details on business development and operational data, please refer to Section III “Management Discussion and Analysis” of this report.
The Company always upholds the principle of “investor-oriented” and insists on focusing on shareholder returns by continuously implementing a stable and predictable cash dividend policy. The implementation of the Company’s profit distribution plan for the year 2024 was accomplished on June 27, 2025. Together with the 2024 interim dividend, the total cash dividend for 2024 of the Company amounted to RMB1.478 billion, accounting for 44.12% of the annual net profit attributable to the Parent Company. The 2025 Interim Profit Distribution Proposal has been reviewed and approved by the Board, proposing a cash dividend of RMB1.20 (inclusive of tax) for every 10 shares, with an expected total distribution of RMB1.012 billion, accounting for 29.23% of the net profit attributable to the Parent Company for the first half of 2025.
In the face of fluctuations in the capital market, the Company actively fulfills its responsibilities as a financial enterprise by promptly initiating the second share repurchase to stabilize market expectations and boost investor confidence. On May 6, 2025, the Board of the Company approved the second share repurchase plan. As at August 5, 2025, this repurchase was fully completed, with a total of 26,703,157 A Shares repurchased through centralized bidding, representing 0.3143% of the total share capital of the Company, for an aggregate consideration of RMB250 million. With two rounds of repurchase, the Company has repurchased a total of 61,546,481 shares.
Interim Report 2025 DFZQ
Section V Significant Events
The Company continuously improves the long-term management mechanism for market value and actively builds a virtuous cycle between market value and enterprise value. In March 2025, the Company formulated the Market Value Management System, which systematically clarifies the comprehensive effectiveness of the market value management toolbox in legally and compliantly using diversified methods such as mergers and acquisitions, equity incentives, cash dividends, investor relations management, information disclosure, and share repurchase to enhance a company's investment value to a level that it can reasonably reflect the Company's intrinsic quality and long-term development potential. In terms of investor relations management, the Company continuously expands communication channels and enhances interaction quality and effectiveness. In the first half of 2025, the Company held 2 results briefings and 2 analyst meetings, participated in 19 brokerage strategy meetings, and received a total of 11 on-site and online surveys. It carried out two regional roadshows in Beijing and Hong Kong, during which it fully engaged with various investors through communication platforms such as SSE e-Interaction, investor hotlines, and emails, striving to enhance market confidence. The Company was awarded "Best Practice in Listed Company Investor Relations Management" by the China Association for Public Companies, which effectively enhanced the Company's market reputation and influence.
In terms of information disclosure, the Company strictly complies with regulatory requirements and continuously enhances compliance awareness and information disclosure quality. In the first half of 2025, the Company completed the preparation of regular reports and interim announcements with high quality, focusing on investor concerns, continuously optimizing system construction, and effectively improving the transparency and readability of its information disclosure. The 2024 annual report of the Company was restructured around the new three-year strategic goals, highlighting core strengths and introducing visual charts to significantly enhance the report's visual appeal and readability. The 2024 sustainability report of the Company systematically showcased the Company's performance in ESG areas such as green finance, corporate governance, employee care, and public welfare commitment, actively building a transparent, sustainable, and responsible corporate image.
During the Reporting Period, the Company made solid progress on the implementation of its action plan of "corporate value and return enhancement", further solidifying the foundation for the Company's quality development. The Company will always adhere to value creation as its core, continuously strengthening the dual drivers of development quality and return capability, and constantly improving the level of shareholder returns to create tangible and sustainable long-term value for investors.
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Section V Significant Events
Looking ahead, the Company will continue to deepen the implementation of regulatory requirements such as the new "Nine Guidelines" and strive to contribute more in the construction of a financial powerhouse and the development of Shanghai as an international financial center by staying focused on fulfilling its strategic vision of "providing top-notch financial services to customers, creating a first-rate development platform for employees, delivering superior investment value for shareholders, and becoming a first-class modern investment bank with domestic competitiveness and international influence".
(ii) The establishment and disposal of the Company's branches and subsidiaries during the Reporting Period
- The securities branches
During the Reporting Period, the Company established 3 new branches, cancelled 10 securities branches, and completed the change of address of 12 branches and the intra-city relocation of 9 branches. As at the end of the Reporting Period, the Company had 4 securities branch companies and 168 securities branches.
Details of new branches are as follows:
| No. | Name of branch | Address |
|---|---|---|
| 1 | DFZQ Beijing Branch | Room 1610-1611 in 1601, 16/F, Building 1, No. 8 |
| Beichen East Road, Chaoyang District, Beijing | ||
| 2 | DFZQ Fujian Branch | Room 1911, No. 134 Jinzhong Road, Huli District, |
| Xiamen City, Fujian Province | ||
| 3 | DFZQ Shenzhen Branch | Unit 2002, Funde Sino Life Insurance Building, No. 1001 Fuzhong 1st Road, Futian District, Shenzhen, Guangdong Province |
Section V Significant Events
In addition, DFZQ Shanghai Jing'an District Urumqi North Road Securities Branch has been upgraded to DFZQ Shanghai Branch.
The closure of branches are as follows:
| No. | Name of branch | Address |
|---|---|---|
| 1 | DFZQ Fushun Suihua Road Securities Branch | No. 45 West Section of Suihua Road, Dongzhou District, Fushun, Liaoning Province |
| 2 | DFZQ Jiujiang Changjiang Avenue Securities Branch | Unit 108/109, Block 2, Xinhu Chaisang Spring Zone 2, No. 358 Changjiang Avenue, Jiujiang Economic and Technological Development Zone, Jiujiang, Jiangxi Province |
| 3 | DFZQ Weihai Shichang Avenue Securities Branch | Room-1, No. 99A, Shichang Avenue, Weihai, Shandong Province |
| 4 | DFZQ Changchun Ziyou Road Securities Branch | Room 110, Block B, The First International Centre, No. 3999 Ziyou Road, Er'dao District, Changchun, Jilin Province |
| 5 | DFZQ Nanjing Mochou Lake East Road Securities Branch | No. 8-3 Mochou East Road, Jianye District, Nanjing, Jiangsu Province |
| 6 | DFZQ Jiangyin Renmin East Road Securities Branch | 1/F, No. 112 & 2/F, No. 108, 110, 112, Renmin East Road, Jiangyin, Jiangsu Province |
| 7 | DFZQ Langfang Art Avenue Securities Branch | No. 409 Art Avenue (No. 101, 1/F, Unit 1, Block 28, Peacock Huijingxuan), Guangyang District, Langfang, Hebei Province |
| 8 | DFZQ Tianjin Nanma Road Securities Branch | No. 1201 Nanma Road, Nankai District, Tianjin |
| 9 | DFZQ Guilin Renmin Road Securities Branch | No. 1-2-1 & 1-2-3, Block 1, 2/F, Dashijie Main Building, Renmin Road, Lingui Town, Lingui County, Guilin, Guangxi Zhuang Autonomous Region |
| 10 | DFZQ Beihai Chating Road Securities Branch | No. 1205-1207, Fuyu Building, No. 31 Chating Road, Beihai, Guangxi Zhuang Autonomous Region |
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Section V Significant Events
Details of the change of address of branches are as follows:
| No. | Name of branch | The change of address |
|---|---|---|
| 1 | DFZQ Huzhou Zhicheng Road Securities | 18-2-05, 18-2-06, 18-2-07, and 18-2-08, Building 18, Aishan Plaza, Zhicheng Road, Aishan Subdistrict, Wuxing District, Huzhou, Zhejiang Province |
| 2 | DFZQ Hangzhou Shixin North Road Securities Branch | Room 1001 (self-declaration), Block 1, Dongfang Zhizun International Center, Ningwei Subdistrict, Xiaoshan District, Hangzhou, Zhejiang Province |
| 3 | DFZQ Baoding Ruixiang Avenue Securities Branch | No. 1966-8 Ruixiang Avenue, Lianchi District, Baoding, Hebei Province |
| 4 | DFZQ Dongying Fuqian Avenue Securities Branch | No. 2201-2206 & 2217-2220, 22F, Block 1, Huali Financial Plaza, No. 128 Fuqian Street, Dongying District, Dongying, Shandong Province |
| 5 | DFZQ Xuchang Xudu Road Securities Branch | 2/F, No. 1, Block A, Huitong Commercial Garden, South of Xudu Road & West of Zhihui Avenue, Dongcheng District, Xuchang, Henan Province |
| 6 | DFZQ Urumqi Nanhu Road Securities Branch | No. 4 & 5, 3/F, Building Construction Mansion, No. 133 Nanhu Road, Shuimogou District, Urumqi, Xinjiang |
| 7 | DFZQ Beijing Anli Road Securities Branch | No. 301, 3/F, Building 27, No. 8 Beichen East Road, Chaoyang District, Beijing |
| 8 | DFZQ Wuhu Beijing East Road Securities Branch | No. 501, Jinghu Star, No. 1 Beijing Middle Road, Fanluoshan Subdistrict, Jinghu District, Wuhu, Anhui Province |
| 9 | DFZQ Beijing Xueyuan Road Securities Branch | Rooms 01-07, 12/F, Block B, Techart Plaza, No. 30 Xueyuan Road, Haidian District, Beijing |
| 10 | DFZQ Jincheng Securities Branch | Shop 3, Block 2, Taifu Xinju, No. 2308 Hongxing East Street, Cheng District, Jincheng, Shanxi Province |
| 11 | DFZQ Xuzhou Securities Branch | No. 101-1, Wenyuan Building, Jiangsu Normal University Science & Technology Park, No. 59 Heping Road, Yunlong District, Xuzhou, Jiangsu Province |
| 12 | DFZQ Shanghai Jiading District Jinsha Road Securities Branch | 1/F, No. 1 & 3 Jinsha Road, Jiading District, Shanghai |
Section V Significant Events
The intra-city relocation of branches are as follows:
| No. | Original name of branch | Current name of branch | Relocated address |
|---|---|---|---|
| 1 | DFZQ Zhuzhou Jianshe South Road Securities Branch | DFZQ Zhuzhou Yangtze North Road Securities Branch | 1st Floor, Changsha Huatian Hotel East Wing, No. 1 Yangtze North Road, Tianyuan District, Zhuzhou, Hunan Province |
| 2 | DFZQ Haikou Jinlong Road Securities Branch | DFZQ Haikou Jinlong Road Securities Branch | Rooms 1007, 1008, 1009 & 1010, 10/F, Yilong Plaza Complex, No. 15 Jinlong Road, Jinmao Street, Longhua District, Haikou, Hainan Province |
| 3 | DFZQ Fuzhou Wusi Road Securities Branch | DFZQ Fuzhou Wusi Road Securities Branch | 17F, Southwest Side, Donghuang Building, No. 109 Wusi Road, Gulou District, Fuzhou, Fujian Province |
| 4 | DFZQ Quanzhou Jinhuai Street Securities Branch | DFZQ Quanzhou Jinhuai Street Securities Branch | Room 702, Block A, Gas Building, No. 25 Jinhuai Street, Fengze District, Quanzhou, Fujian Province |
| 5 | DFZQ Xi’an Tangyan Road Securities Branch | DFZQ Xi’an Keji Road Securities Branch | Room 10903, Building 1, Digital Tower, High-Tech International Business Center, Hi-Tech Zone, Xi’an, Shaanxi Province |
| 6 | DFZQ Qingdao Miaoling Road Securities Branch | DFZQ Qingdao Xianxialing Road Securities Branch | Rooms 07 & 08, 12A/F, Tower 2 Guoxin Financial Center, No. 31 Xianxialing Road, Laoshan District, Qingdao, Shandong Province |
| 7 | DFZQ Ningbo Zhongxing Road Securities Branch | DFZQ Ningbo Baohua Street Securities Branch | No. 6-4, No. 77 Baohua Street, Yinzhou District, Ningbo, Zhejiang Province |
| 8 | DFZQ Xi’an Weiyang Road Securities Branch | DFZQ Xi’an Weiyang Road Securities Branch | Room 11801, Tower A, Zhongdeng Building No. 138-1 Weiyang Road, Xi’an, Shaanxi Province |
| 9 | DFZQ Shanghai Pudong New Area Xinchuan Road Securities Branch | DFZQ Shanghai Pudong New Area Chuansha Road Securities Branch | Units 1002 & 1003, 10/F, Building A, Chuansha Enterprise Center Phase 1, No. 5788 Chuansha Road, Pudong New Area, Shanghai |
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Section V Significant Events
2. Futures branches
During the Reporting Period, the Company established 1 new branch, and completed the intra-city relocation of 3 branches. As at the end of the Reporting Period, the Company had 13 futures subsidiaries and 36 futures branches.
Details of the new establishment are as follows:
| No. | Name of branch | Address |
|---|---|---|
| 1 | Xinjiang Business Department of Orient Securities Futures Co., Ltd. | Rooms 1508-1 & 1509, 2# Office Building, Financial Tower, No. 791 Kunlun East Street Shuimogou District, Urumqi, Xinjiang |
Details of the intra-city relocation of branches are as follows:
| No. | Name of branch | Relocated address |
|---|---|---|
| 1 | Zhengzhou Business Department of Orient Securities Futures Co., Ltd. | Rooms 1801 & 1802, Future Building, No. 69 Weilai Road, Jinshui District, Zhengzhou, Henan Province |
| 2 | Changsha Business Department of Orient Securities Futures Co., Ltd. | Rooms 1428 & 1429, Kaibin Commercial Plaza, No. 419 Shaoshan Middle Road, Yuhua District, Changsha, Hunan Province |
| 3 | Shenzhen Business Department of Orient Securities Futures Co., Ltd. | Units 1410-1411, ICC Tower, No. 168 Fuhua 3rd Road, Fu'an Community, Futian Street, Futian District, Shenzhen, Guangdong Province |
Interim Report 2025 DFZQ
Section V Significant Events
(iii) Explanations on share repurchase
To safeguard the value of the Company and shareholders' equity, the Repurchase Plan of A Shares of the Company through Centralised Price Bidding was considered and approved at the 6th meeting of the sixth session of the Board of the Company on May 6, 2025. On August 5, 2025, a total of 26,703,157 A Shares of the Company were repurchased by the Company through centralized bidding transaction via the trading system of the Shanghai Stock Exchange, accounting for 0.3143% of the total share capital of the Company. The total amount of funds paid was RMB250,088,870.47 (excluding transaction fees), with the lowest trading price of RMB9.19 per share and the highest trading price of RMB9.76 per share. The monthly reports of the Company during the repurchase period are as follows:
Unit: Yuan Currency: RMB
| Month of repurchase | Number of repurchase (share) | Lowest trading price per Share | Highest trading price per Share | Total funds (excluding transaction fees) |
|---|---|---|---|---|
| May 2025 | 25,624,457 | 9.19 | 9.55 | 239,589,939.47 |
| June 2025 | 1,078,700 | 9.71 | 9.76 | 10,498,931.00 |
As at the end of the Reporting Period, the Company had cumulatively repurchased 61,546,481 A Shares. If the Company fails to complete the sale of the shares repurchased within 3 years after the completion of the repurchase, such portion of shares repurchased shall be cancelled upon completion of the relevant procedures, and the Company's total share capital and circulating non-restricted shares will be reduced accordingly.
Save as disclosed above, neither the Company nor any of its subsidiaries repurchased, sold or redeemed listed securities (including the sale of treasury shares) of the Company or its subsidiaries during the half year ended June 30, 2025.
Section V Significant Events
(iv) Implementation of profit distribution
The implementation of the Company's profit distribution plan for the year 2024 was accomplished on June 27, 2025. Based on the total share capital of the Company as at the record date for the dividend distribution, a cash dividend of RMB1.00 (inclusive of tax) for every 10 Shares has been distributed to A Shareholders and H Shareholders whose names appear on the register of members on the record date for the dividend distribution.
According to the relevant provisions of the Guidelines of Self-regulation of Companies Listed on the Shanghai Stock Exchange No. 7 – Repurchase of Shares and other relevant regulations, the A Shares in the Company's designated securities account for repurchase of the Company shall not be entitled to dividend distribution. Based on the Company's total share capital of 8,496,645,292 shares as at the record date for cash dividend distribution after deducting 60,467,781 shares from the Company's repurchase account as at the record date, the total amount of cash dividends distributed amounted to RMB843,617,751.10, accounting for 25.18% of the consolidated net profit attributable to owners of the Parent Company in 2024. The Company has distributed an interim cash dividend of RMB634,635,147.60 in 2024, and the total cash dividends distributed in 2024 amounted to RMB1,478,252,898.70, accounting for 44.12% of the consolidated net profit attributable to owners of the Parent Company in 2024.
(v) Subsequent events
Other than those disclosed in Note 50 of the financial statements in this report, the Company had no other material events subsequent to June 30, 2025 and up to the date of this report.
Interim Report 2025 DFZQ
Section VI Changes in Shares and Information on Shareholders
I. CHANGES IN SHARE CAPITAL
During the Reporting Period, there were no changes in the total number of shares or the share capital structure of the Company.
II. INFORMATION ON SHAREHOLDERS
(i) Total number of shareholders:
Total number of holders of ordinary shares as at the end of the Reporting Period (accounts) 179,259
(ii) Table of shareholdings of the top ten shareholders and the top ten shareholders of circulating shares (or shareholders not subject to restriction on sales) as at the end of the Reporting Period
Unit: Share
| Name of shareholder
(Full name) | Shareholdings of the top ten shareholders (excluding shares lent under the margin financing) | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | Changes in number of shares during the Reporting Period | Number of shares held as at the end of the Reporting Period | Percentage (%) | Number of restricted shares held | Pledged, flagged or frozen Status of shares | Number of shares | Nature of shareholders |
| Shenergy (Group) Company Limited | 0 | 2,262,428,700 | 26.63 | 0 | Nil | - | State-owned legal person |
| HKSCC Nominees Limited | -90,000 | 1,026,934,744 | 12.09 | 0 | Unknown | - | Off-shore legal person |
| Shanghai Haiyan Investment Management Company Limited | 0 | 423,186,126 | 4.98 | 0 | Nil | - | State-owned legal person |
| Shanghai United Media Group | 0 | 309,561,060 | 3.64 | 0 | Nil | - | State-owned legal person |
| Hong Kong Securities Clearing Company Limited | 11,463,781 | 274,947,519 | 3.24 | 0 | Nil | - | Off-shore legal person |
| China Post Group Corporation Limited | 0 | 228,791,342 | 2.69 | 0 | Nil | - | State-owned legal person |
| China Securities Finance Corporation Limited | 0 | 227,872,800 | 2.68 | 0 | Nil | - | State-owned legal person |
| Zhejiang Energy Capital Holdings Limited (原能資本控股有限公司) | 0 | 177,625,600 | 2.09 | 0 | Nil | - | State-owned legal person |
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Section VI Changes in Shares and Information on Shareholders
Shareholdings of the top ten shareholders (excluding shares lent under the margin financing)
| Name of shareholder
(Full name) | Changes in number of shares during the Reporting Period | Number of shares held as at the end of the Reporting Period | Percentage (%) | Number of restricted shares held | Pledged, flagged or frozen | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | Status of shares | Number of shares | Nature of shareholders |
| Shanghai Jinqiao Export Processing Zone Development Co., Ltd. (上海金樵出口加工區開發股份有限公司) | 0 | 124,328,872 | 1.46 | 0 | Nil | - | State-owned legal person |
| Industrial and Commercial Bank of China Limited – Huatai-PineBridge CSI 300 Exchange-traded Open-ended Index Securities Investment Fund (中國工商銀行股份有限公司－華泰柏瑞溪深 300 交易型開放式指數證券投資基金) | 2,722,656 | 93,023,287 | 1.09 | 0 | Nil | - | Other |
Interim Report 2025 DFZQ
Section VI Changes in Shares and Information on Shareholders
Shareholdings of the top ten shareholders of non-restricted shares (excluding the shares lent under the margin financing)
| Name of shareholder | Number of circulating non-restricted shares held | Type and number of shares Type | Number |
|---|---|---|---|
| Shenergy (Group) Company Limited | 2,262,428,700 | RMB ordinary shares | 2,262,428,700 |
| HKSCC Nominees Limited | 1,026,934,744 | Overseas listed foreign shares | 1,026,934,744 |
| Shanghai Haiyan Investment Management Company Limited | 423,186,126 | RMB ordinary shares | 423,186,126 |
| Shanghai United Media Group | 309,561,060 | RMB ordinary shares | 309,561,060 |
| Hong Kong Securities Clearing Company Limited | 274,947,519 | RMB ordinary shares | 274,947,519 |
| China Post Group Corporation Limited | 228,791,342 | RMB ordinary shares | 228,791,342 |
| China Securities Finance Corporation Limited | 227,872,800 | RMB ordinary shares | 227,872,800 |
| Zheneng Capital Holdings Limited (浙能資本控股有限公司) | 177,625,600 | RMB ordinary shares | 177,625,600 |
| Shanghai Jinqiao Export Processing Zone Development Co., Ltd. (上海金橋出口加工區開發股份有限公司) | 124,328,872 | RMB ordinary shares | 124,328,872 |
| Industrial and Commercial Bank of China Limited – Huatai – PineBridge CSI 300 Exchange-traded Open-ended Index Securities Investment Fund (中國工商銀行股份有限公司－華泰柏瑞滬深 300 交易型開放式指數證券投資基金) | 93,023,287 | RMB ordinary shares | 93,023,287 |
| Special repurchase account of the top ten shareholders | N/A | ||
| Voting by proxy, as proxy or abstention of voting rights by the above shareholders | N/A | ||
| Related party relationship or parties acting in concert among above shareholders | N/A |
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Section VI Changes in Shares and Information on Shareholders
III. DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
(i) During the Reporting Period, there were no changes in the shareholdings of existing and resigned Directors, Supervisors and senior management.
(ii) During the Reporting Period, no equity incentives were granted to the Directors, Supervisors or senior management.
IV. DURING THE REPORTING PERIOD, THERE WERE NO CHANGES OF CONTROLLING SHAREHOLDERS OR DE FACTO CONTROLLER OF THE COMPANY.
V. DURING THE REPORTING PERIOD, THE COMPANY DID NOT HAVE ANY MATTERS RELATING TO PREFERENCE SHARES.
Interim Report 2025 DFZQ
Section VI Changes in Shares and Information on Shareholders
VI. SUBSTANTIAL SHAREHOLDERS AND OTHER PERSONS' INTERESTS AND SHORT POSITIONS IN THE SHARES AND UNDERLYING SHARES
As at June 30, 2025, to the best knowledge of the Company and its Directors, having made all reasonable enquiries, the following substantial shareholders and other parties (excluding the Directors, Supervisors and chief executive of the Company) had interests or short positions in the Shares or underlying shares of the Company, which is required to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO and has been entered in the register kept by the Company according to Section 336 of the SFO:
| Name of shareholders | Type of share | Nature of interests | Number of shares (Note 1) | Approximate percentage of total share capital of relevant class in issue of the Company (%) (Note 2) | Approximate percentage of total share capital in issue of the Company (%) (Note 2) |
|---|---|---|---|---|---|
| Shenergy (Group) Company Limited | A Share | Beneficial owner | 2,262,428,700 (L) | 30.29 | 26.63 |
| China National Tobacco Corporation (Note 3) | A Share | Interests in controlled corporation | 423,186,126 (L) | 5.67 | 4.98 |
| Shanghai Tobacco (Group) Company (Note 3) | A Share | Interests in controlled corporation | 423,186,126 (L) | 5.67 | 4.98 |
| Shanghai Haiyan Investment Management Company Limited (Note 3) | A Share | Beneficial owner | 423,186,126 (L) | 5.67 | 4.98 |
| Shanghai Wealspring Asset Management Co., Ltd. (上海寧泉資產管理有限公司) | H Share | Investment manager | 98,224,800 (L) | 9.56 | 1.16 |
| Zhu Lijia (Note 4) | H Share | Interests in controlled corporation | 94,940,800 (L) | 9.24 | 1.12 |
| Sun Hongyan (Note 4) | H Share | Interests in controlled corporation | 94,940,800 (L) | 9.24 | 1.12 |
| Hung Jia Finance Limited (Note 4) | H Share | Interests in controlled corporation | 94,940,800 (L) | 9.24 | 1.12 |
| Kaiser Century Investments Limited (Note 4) | H Share | Beneficial owner | 94,940,800 (L) | 9.24 | 1.12 |
| Bank of Communications Co., Ltd. (Note 5) | H Share | Interests in controlled corporation | 93,991,600 (L) | 9.15 | 1.11 |
| Bank of Communications (Nominee) Company Limited (Note 5) | H Share | Interests in controlled corporation | 93,991,600 (L) | 9.15 | 1.11 |
| BOCOM International Asset Management Limited (Note 5) | H Share | Interests in controlled corporation | 93,991,600 (L) | 9.15 | 1.11 |
| BOCOM International Holdings Company Limited (Note 5) | H Share | Interests in controlled corporation | 93,991,600 (L) | 9.15 | 1.11 |
| BOCOM International Global Investment Limited (Note 5) | H Share | Beneficial owner | 93,991,600 (L) | 9.15 | 1.11 |
Interim Report 2025 DFZQ
Section VI Changes in Shares and Information on Shareholders
Notes:
- (L) represents the long position.
- As at June 30, 2025, the Company has issued 8,496,645,292 shares in total, including 7,469,482,864 A Shares and 1,027,162,428 H Shares.
- Shanghai Haiyan Investment Management Company Limited is wholly owned by Shanghai Tobacco (Group) Co., Ltd., which in turn is wholly owned by China National Tobacco Corporation. Therefore, each of China National Tobacco Corporation and Shanghai Tobacco (Group) Co., Ltd. is deemed to be interested in the shares of the Company held by Shanghai Haiyan Investment Management Company Limited under the SFO.
- Kaiser Century Investments Limited is owned as to 100% by Hung Jia Finance Limited. Hung Jia Finance Limited is owned as to 50% by each of Mr. Zhu Lijia and his spouse Ms. Sun Hongyan. Therefore, each of Mr. Zhu Lijia, Ms. Sun Hongyan and Hung Jia Finance Limited is deemed to be interested in the shares of the Company held by Kaiser Century Investments Limited under the SFO.
- BOCOM International Global Investment Limited is wholly owned by BOCOM International Asset Management Limited. BOCOM International Asset Management Limited is wholly owned by BOCOM International Holdings Company Limited, which in turn is wholly owned by Bank of Communications (Nominee) Company Limited. Bank of Communications (Nominee) Company Limited is wholly owned by Bank of Communications Co., Ltd. Therefore, each of Bank of Communications Co., Ltd., Bank of Communications (Nominee) Company Limited, BOCOM International Holdings Company Limited and BOCOM International Asset Management Limited is deemed to be interested in the shares of the Company held by BOCOM International Global Investment Limited under the SFO.
Save as disclosed above, as at June 30, 2025, none of the other substantial shareholders or other parties has any interests or short positions in the shares or underlying shares of the Company which are required to be recorded in the register required to be kept pursuant to Section 336 of the SFO.
VII. DIRECTORS', SUPERVISORS' AND CHIEF EXECUTIVES' INTERESTS AND SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES OR DEBENTURES OF THE COMPANY AND ITS ASSOCIATED CORPORATIONS
As at June 30, 2025, according to the information available to the Company and so far as the Directors are aware, none of the Directors, Supervisors or chief executive of the Company had interests and short positions in the shares, underlying shares or debentures of the Company or its associated corporations (as defined under Part XV of the SFO), which were required to 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 are 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 entered in the register referred to therein, or would be required, pursuant to the Model Code, to be notified to the Company and the Hong Kong Stock Exchange.
Interim Report 2025 DFZQ
Section VII Bonds
I. CORPORATE DEBENTURES (INCLUDING CORPORATE BONDS) AND DEBT FINANCING INSTRUMENTS OF NON-FINANCIAL ENTERPRISES
(i) Corporate debentures (including corporate bonds)
- Basic information of corporate bonds
Unit: 100 million Currency: RMB
| Name of bonds | Abbreviation | Code | Date of issuance | Dated date | The latest resale date after August 31, 2025 | Maturity date | Bonds balance | Interest rate (%) | Repayment of principal and interest | Trading venue | Lead underwriter | Trustee | Investor suitability arrangements (if any) | Trading mechanism | Risk of termination of listing and trading |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 Short-term Corporate Bonds publicly issued by DFZQ (for professional investors) (second tranche) | 25 Orient Securities S2 | 242858. SH | 2025-05-07 | 2025-05-09 | - | 2025-11-05 | 20 | 1.71 | Principal and interest to be repaid upon maturity in one lump sum | SSE | GF Securities and CHina Galaxy Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2022 Corporate Bonds publicly issued by DFZQ (for professional investors) (third tranche) | 22 Orient Securities 138727. SH 04 | 2022-12-12 | 2022-12-14 | - | 2025-12-14 | 35 | 3.4 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | Orient Investment Banking and CHina Galaxy Securities | CHina Galaxy Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No | |
| 2025 Corporate Bonds publicly issued by DFZQ (for professional investors) (first tranche) | 25 Orient Securities 242271. SH 01 | 2025-01-09 | 2025-01-13 | - | 2026-01-15 | 20 | 1.64 | Principal and interest to be repaid upon maturity in one lump sum | SSE | GF Securities and Western Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No | |
| 2025 Short-term Corporate Bonds publicly issued by DFZQ (for professional investors) (third tranche) | 25 Orient Securities S3 | 243376. SH | 2025-07-22 | 2025-7-24 | - | 2026-01-20 | 20 | 1.61 | Principal and interest to be repaid upon maturity in one lump sum | SSE | GF Securities, Everbright Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
Interim Report 2025 DFZQ
Section VII Bonds
| Name of bonds | Abbreviation | Code | Date of issuance | Dated date | The latest resale date after August 31, 2025 | Maturity date | Bonds balance | Interest rate (%) | Repayment of principal and interest | Trading venue | Lead underwriter | Trustee | Investor suitability arrangements (if any) | Trading mechanism | Risk of termination of listing and trading |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 Corporate Bonds publicly issued by DFZQ (for professional investors) (first tranche) (Type 2) | 23 Orient Securities | 138918. SH 02 | 2023-02-17 | 2023-02-21 | - | 2026-02-21 | 25 | 3.13 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | Orient Investment Banking and China Galaxy Securities | China Galaxy Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2021 Subordinated Bonds publicly issued by DFZQ (for professional investors) (second tranche) (Type 2) | 21 Orient Securities | 175994. SH C3 | 2021-04-14 | 2021-04-16 | - | 2026-04-16 | 15 | 4.2 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | Orient Investment Banking | Dongguan Securities | For institutional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2023 Subordinated Bonds publicly issued by DFZQ (first tranche) | 23 Orient Securities | 115292. SH C1 | 2023-04-20 | 2023-04-24 | - | 2026-04-24 | 30 | 3.3 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | Orient Investment Banking, GF Securities and Western Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2023 Corporate Bonds publicly issued by DFZQ (for professional investors) (third tranche) | 23 Orient Securities | 115403. SH 04 | 2023-05-22 | 2023-05-24 | - | 2026-05-24 | 30 | 2.9 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | Orient Investment Banking and China Galaxy Securities | China Galaxy Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2023 Subordinated Bonds publicly issued by DFZQ (for professional investors) (second tranche) | 23 Orient Securities | 115763. SH C2 | 2023-08-08 | 2023-08-10 | - | 2026-08-10 | 30 | 3.08 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | Orient Investment Banking, GF Securities and Western Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
Interim Report 2025 DFZQ
Section VII Bonds
| Name of bonds | Abbreviation | Code | Date of issuance | Dated date | The latest resale date after August 31, 2025 | Maturity date | Bonds balance | Interest rate (%) | Repayment of principal and interest | Trading venue | Lead underwriter | Trustee | Investor suitability arrangements (if any) | Trading mechanism | Risk of termination of listing and trading |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 Subordinated Bonds publicly issued by DFZQ (for professional investors) (third tranche) (Type 1) | 23 Orient Securities | 240151. SH C3 | 2023-10-26 | 2023-10-30 | - | 2026-10-30 | 28 | 3.3 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities and Western Securities | GF Securities | For professional investors | Matching, dick-to-trade, quote request, auction and negotiation | No |
| 2023 Subordinated Bonds publicly issued by DFZQ (for professional investors) (fourth tranche) | 23 Orient Securities | 240318. SH C5 | 2023-11-21 | 2023-11-23 | - | 2026-11-23 | 20 | 3.18 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities and Western Securities | GF Securities | For professional investors | Matching, dick-to-trade, quote request, auction and negotiation | No |
| 2024 Corporate Bonds publicly issued by DFZQ (for professional investors) (first tranche) | 24 Orient Securities | 240544. SH 01 | 2024-01-23 | 2024-01-25 | - | 2027-01-25 | 18 | 2.73 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities and Western Securities | GF Securities | For professional investors | Matching, dick-to-trade, quote request, auction and negotiation | No |
| 2022 Corporate Bonds publicly issued by DFZQ (for professional investors) (first tranche) (Type 2) | 22 Orient Securities | 137548. SH 02 | 2022-07-19 | 2022-07-21 | - | 2027-07-21 | 15 | 3.18 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | Orient Investment Banking and China Galaxy Securities | China Galaxy Securities | For professional investors | Matching, dick-to-trade, quote request, auction and negotiation | No |
| 2017 Corporate Bonds publicly issued by DFZQ | 17 Orient Bonds | 143233. SH | 2017-08-02 | 2017-08-03 | - | 2027-08-03 | 40 | 4.98 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | Orient Investment Banking | Dongguan Securities | For qualified investors | Matching, dick-to-trade, quote request, auction and negotiation | No |
| 2022 Corporate Bonds publicly issued by DFZQ (for professional investors) (second tranche) | 22 Orient Securities | 137725. SH 03 | 2022-08-23 | 2022-08-25 | - | 2027-08-25 | 20 | 3 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | Orient Investment Banking and China Galaxy Securities | China Galaxy Securities | For professional investors | Matching, dick-to-trade, quote request, auction and negotiation | No |
Interim Report 2025 DFZQ
Section VII Bonds
| Name of bonds | Abbreviation | Code | Date of issuance | Dated date | The latest resale date after August 31, 2025 | Maturity date | Bonds balance | Interest rate (%) | Repayment of principal and interest | Trading venue | Lead underwriter | Trustee | Investor suitability arrangements (if any) | Trading mechanism | Risk of termination of listing and trading |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 Corporate Bonds publicly issued by DFZQ (for professional investors) (fifth tranche) (sustainability-linked) | 24 Orient Securities | 241955. SH 08 | 2024-11-19 | 2024-11-21 | - | 2027-11-21 | 20 | 2.15 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities and Western Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2023 Corporate Bonds publicly issued by DFZQ (for professional investors) (second tranche) | 23 Orient Securities | 115092. SH 03 | 2023-03-17 | 2023-03-21 | - | 2028-03-21 | 16 | 3.32 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | Orient Investment Banking and China Galaxy Securities | China Galaxy Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2025 Corporate Bonds for Science and Technology Innovation publicly issued by DFZQ (for professional investors) (first tranche) | 25 Orient Securities | 242817. SH K1 | 2025-05-09 | 2025-05-13 | - | 2028-05-13 | 10 | 1.69 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2025 Corporate Bonds publicly issued by DFZQ (for professional investors) (second tranche) | 25 Orient Securities | 243540. SH 02 | 2025-08-12 | 2025-08-14 | - | 2028-08-14 | 25 | 1.88 | Interest payable annually and principal to be repaid upon maturity in one lump sum | SSE | GF Securities, China Galaxy Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2023 Subordinated Bonds publicly issued by DFZQ (for professional investors) (third tranche) (Type 2) | 23 Orient Securities | 240152. SH C4 | 2023-10-26 | 2023-10-30 | - | 2028-10-30 | 7 | 3.5 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities and Western Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2024 Subordinated Bonds publicly issued by DFZQ (for professional investors) (first tranche) | 24 Orient Securities | 241168. SH C1 | 2024-06-24 | 2024-06-26 | - | 2029-06-26 | 20 | 2.33 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities, Western Securities and Everbright Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2024 Subordinated Bonds publicly issued by DFZQ (for professional investors) (second tranche) | 24 Orient Securities | 241210. SH C2 | 2024-07-04 | 2024-07-08 | - | 2029-07-08 | 25 | 2.31 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities, Western Securities and Everbright Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
Interim Report 2025 DFZQ 139
Section VII Bonds
| Name of bonds | Abbreviation | Code | Date of issuance | Dated date | The latest resale date after August 31, 2025 | Maturity date | Bonds balance | Interest rate (%) | Repayment of principal and interest | Trading venue | Lead underwriter | Trustee | Investor suitability arrangements (if any) | Trading mechanism | Risk of termination of listing and trading |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 Corporate Bonds publicly issued by DFZQ (for professional investors) (second tranche) (Type 1) | 24 Orient Securities | 241377. SH 02 | 2024-08-06 | 2024-08-08 | - | 2029-06-08 | 10 | 2.05 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities and Western Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2024 Corporate Bonds publicly issued by DFZQ (for professional investors) (third tranche) (Type 1) | 24 Orient Securities | 241508. SH 04 | 2024-08-21 | 2024-08-23 | - | 2029-08-23 | 30 | 2.18 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities and Western Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2024 Corporate Bonds publicly issued by DFZQ (for professional investors) (fourth tranche) (Type 1) | 24 Orient Securities | 241712. SH 06 | 2024-10-15 | 2024-10-17 | - | 2029-10-17 | 30 | 2.28 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities and Western Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2025 Subordinated Bonds publicly issued by DFZQ (for professional investors) (first tranche) (Type 2) | 25 Orient Securities | 242595. SH C2 | 2025-03-13 | 2025-03-17 | - | 2030-03-17 | 22 | 2.45 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities, Western Securities and Everbright Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2025 Perpetual Subordinated Bonds publicly issued by DFZQ (for professional investors) (first tranche) Note | 25 Orient Securities | 243639. SH Y1 | 2025-08-21 | 2025-08-25 | - | 2030-08-25 | 30 | 2.35 | Interest payable annually if the issuer does not exercise the right of deferred payment of interest. | SSE | GF Securities, China Galaxy Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
| 2024 Corporate Bonds publicly issued by DFZQ (for professional investors) (second tranche) (Type 2) | 24 Orient Securities | 241380. SH 03 | 2024-08-06 | 2024-08-08 | - | 2034-08-08 | 20 | 2.3 | Interest to be paid annually, principal to be repaid upon maturity in one lump sum | SSE | GF Securities and Western Securities | GF Securities | For professional investors | Matching, click-to-trade, quote request, auction and negotiation | No |
Interim Report 2025 DFZQ
Section VII Bonds
Note: Every five interest-accruing years constitute a repricing period of the bond. At the end of each repricing period, the Company is entitled to extend such tranche of bonds by one repricing period (i.e. for another period of 5 years) or redeem such tranche of bonds in full.
- The triggering and performance of the Company or investor option terms, investor protection terms
The Company's "20 Orient Securities Y1" was issued with an issuer option of renewal and without an investor option of resale. The Company decided not to exercise the issuer option of renewal of such tranche of bonds. For the issuer right of deferral of interest payment, as the "2024 Profit Distribution Proposal of the Company" was considered and approved at the 2024 annual general meeting of the Company held in May 2025, which was a mandatory interest payment event as stipulated in the prospectus of "20 Orient Securities Y1", the Company has made full and timely payment of the current interest on the bonds. The issuer option of redemption upon satisfaction of certain conditions has not been triggered before redemption of such tranche of bonds upon maturity. The Company completed the redemption of such tranche of bonds on August 26, 2025.
The Company's "25 Orient Securities Y1" is issued with an issuer option of renewal and without an investor option of resale. As of the date of disclosure of this report, the issuer option of renewal has yet to become exercisable. For the issuer right of deferral of interest payment, the interest payment date has not yet arrived as of the date of disclosure of this report. The issuer option of redemption upon satisfaction of certain conditions has not been triggered as at the date of disclosure of this report.
-
During the Reporting Period, there was no change in the Company's domestic and international credit rating.
-
The implementation of and changes in guarantees, repayment plans and other repayment supporting measures and impacts thereof during the Reporting Period
| Current status | Implementation | Is there any change | Situation after the change | Reason for the change | Whether the change has been approved by competent authorities | Impact of the change on rights and interests of bonds investors |
|---|---|---|---|---|---|---|
| The relevant terms and measures remain consistent with the agreements set out in the prospectus and other offering documents at the time of issuance of bonds. | The Company strictly adheres to the commitments and agreements outlined in the prospectus and other offering documents, and diligently implements the debt repayment plan and related debt repayment safeguard measures. | No | N/A | N/A | N/A | N/A |
Interim Report 2025 DFZQ
Section VII Bonds
(ii) Proceeds from Corporate Bonds
- Basic information
Unit: 100 million Currency: RMB
| Name of bonds | Bond abbreviation | Whether it is a specialized variety of bond | Types of special category bond | Total proceeds | Balance of proceeds at the end of the Reporting Period | Balance of special account for proceeds at the end of the Reporting Period |
|---|---|---|---|---|---|---|
| 241955. SH | 24 Orient Securities 08 | Yes | Sustainability-linked bonds | 20.00 | 0.00 | 0.00 |
| 242271. SH | 25 Orient Securities 01 | No | – | 20.00 | 0.00 | 0.00 |
| 242595. SH | 25 Orient Securities C2 | No | – | 22.00 | 0.00 | 0.00 |
| 242857. SH | 25 Orient Securities S1 | Yes | Short-term corporate bonds | 20.00 | 0.00 | 0.00 |
| 242858. SH | 25 Orient Securities S2 | Yes | Short-term corporate bonds | 20.00 | 0.00 | 0.00 |
| 242617. SH | 25 Orient Securities K1 | Yes | Corporate bonds for science and technology innovation | 10.00 | 1.00 | 1.00 |
Interim Report 2025 DFZQ
Interim Report 2025 DFZQ
143
Section VII Bonds
2. Use of proceeds
(1). The actual use of proceeds (excluding temporary replenishment of liquidity)
Unit: 100 million Currency: RMB
| Bond code | Bond abbreviation | Actual amount of proceeds utilized during the Reporting Period | Repayment amount of interest-bearing debts (excluding bonds of the Company) | Repayment amount of bonds of the Company | Replenishment amount of liquidity | Amounts involved in fixed asset project investment | Amounts involved in equity investments, debt investments, or asset acquisitions | Amount of other uses |
|---|---|---|---|---|---|---|---|---|
| 241955. SH | 24 Orient Securities 08 | 9.00 | 0.00 | 9.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 242271. SH | 25 Orient Securities 01 | 20.00 | 0.00 | 20.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 242595. SH | 25 Orient Securities C2 | 22.00 | 0.00 | 11.00 | 11.00 | 0.00 | 0.00 | 0.00 |
| 242857. SH | 25 Orient Securities S1 | 20.00 | 0.00 | 0.00 | 20.00 | 0.00 | 0.00 | 0.00 |
| 242858. SH | 25 Orient Securities S2 | 20.00 | 0.00 | 0.00 | 20.00 | 0.00 | 0.00 | 0.00 |
| 242617. SH | 25 Orient Securities K1 | 9.00 | 0.00 | 3.00 | 0.00 | 0.00 | 0.00 | 6.00 |
Section VII Bonds
(2). The use of proceeds for repayment of corporate bonds and other interest-bearing debts
| Bond code | Bond abbreviation | Specific circumstances of repayment of corporate bonds | Specific circumstances of repayment of other interest-bearing debts (excluding corporate bonds) |
|---|---|---|---|
| 241955. SH | 24 Orient Securities 08 | RMB900 million was used to repay the principal of 22 Orient Securities C1 | N/A |
| 242271. SH | 25 Orient Securities 01 | RMB1,600 million was used to repay its own funds utilized for replacing and repaying the principal of 22 Orient Securities C1; and RMB400 million was used to repay the principal of 23 Orient Securities 01 | N/A |
| 242595. SH | 25 Orient Securities C2 | RMB1,100 million is intended to be used to replace its own funds utilized for repaying the principal of 23 Orient Securities 01 | N/A |
| 242617. SH | 25 Orient Securities K1 | RMB300 million was used to replace its own funds utilized for repaying the principal of 24 Orient Securities S1 | N/A |
Interim Report 2025 DFZQ
Section VII Bonds
(3). The use of proceeds for replenishment (excluding temporary replenishment of liquidity herein)
| Bond code | Bond abbreviation | Specific circumstances of replenishment of liquidity |
|---|---|---|
| 242595. SH | 25 Orient Securities C2 | RMB1.1 billion was transferred to the Company's basic account for replenishment of liquidity |
| 242857. SH | 25 Orient Securities S1 | RMB2 billion was transferred to the Company's basic account for replenishment of liquidity |
| 242858. SH | 25 Orient Securities S2 | RMB2 billion was transferred to the Company's basic account for replenishment of liquidity |
(4). The use of proceeds for other purposes
| Bond code | Bond abbreviation | Specific circumstances of other purposes |
|---|---|---|
| 242617. SH | 25 Orient Securities K1 | RMB600 million was allocated to investments in the field of science and technology innovation or to replace relevant investment expenditures in this field made within the 12 months prior to the issuance |
Interim Report 2025 DFZQ
Section VII Bonds
3. Compliance of use of proceeds
| Bond code | Bond abbreviation | Use of proceeds agreed in the prospectus | Actual use of proceeds (including actual use and temporary replenishment of liquidity) as at the end of the Reporting Period | Whether the actual use is consistent with the agreed use (including the uses agreed in the prospectus and those after compliant changes) | Compliance of the use of proceeds and management of the special account for proceeds during the Reporting Period | Whether the use of proceeds complies with local government debt management regulations |
|---|---|---|---|---|---|---|
| 241955. SH | 24 Orient Securities 08 | Repayment of the principal of matured bonds of the Company and supplement to working capital | Repayment of the principal of matured bonds of the Company and supplement to working capital | Yes | Yes | Not involved |
| 242271. SH | 25 Orient Securities 01 | Repayment of the principal of matured bonds of the Company | Repayment of the principal of matured bonds of the Company | Yes | Yes | Not involved |
| 242595. SH | 25 Orient Securities C2 | Repayment of the principal of matured bonds of the Company and supplement to working capital | Repayment of the principal of matured bonds of the Company and supplement to working capital | Yes | Yes | Not involved |
| 242857. SH | 25 Orient Securities S1 | Supplement to working capital | Supplement to working capital | Yes | Yes | Not involved |
| 242858. SH | 25 Orient Securities S2 | Supplement to working capital | Supplement to working capital | Yes | Yes | Not involved |
| 242617. SH | 25 Orient Securities K1 | No less than 70% of the proceeds was allocated to investments in the field of science and technology innovation or to replace relevant investment expenditures in this field made within the 12 months prior to the issuance, while the remaining proceeds will be used to repay the principal of matured corporate bonds | RMB600 million was exclusively used to support businesses in the field of science and technology innovation through forms such as equity, bonds, and fund investments, or to replace relevant investment expenditures in this field made within the 12 months prior to the issuance, RMB300 million was used to replace its own funds utilized for repaying the principal of matured corporate bonds, and the remaining RMB100 million has not yet been utilized | Yes | Yes | Not involved |
Interim Report 2025 DFZQ
Interim Report 2025 DFZQ
Section VII Bonds
(iii) Other matters on special category bonds
1. The Company as the issuer of perpetual corporate bonds
Unit: 100 million Currency: RMB
| Bond code | 175032.SH |
|---|---|
| Bond abbreviation | 20 Orient Securities Y1 |
| Bond balance | 50.00 |
| Information on renewal | – |
| Information on interest rate spike | There was no interest rate spike during the Reporting Period. |
| Information on interest deferral | There were no interest deferrals during the Reporting Period. |
| Information on mandatory interest payment | As the Profit Distribution Proposal of the Company for the Year 2024 was considered and approved at the 2024 annual general meeting of the Company held in May 2025, it constituted a mandatory interest payment event as agreed in the prospectus of the current bonds, the Company has paid the current interest on the bonds on time and in full. |
| Whether it is still included in equity and the related accounting treatment | Included in equity instruments |
| Other matters | N/A |
Note: As at the end of the Reporting Period, the outstanding balance of the bonds was RMB5,000 million, which has been fully redeemed on August 26, 2025.
147
Interim Report 2025 DFZQ
Section VII Bonds
- The Company is the issuer of science and technology innovation corporate bonds or innovation and entrepreneurship corporate bonds
Unit: 100 million Currency: RMB
The issuer entity category applicable to the current bonds Financial institution
Bond code 242617.SH
Bond abbreviation 25 Orient Securities K1
Bond balance 10.00
Progress of science and technology innovation projects As at the end of the Reporting Period, RMB900 million of the proceeds from the current bonds has been utilized. Among which, RMB300 million was used to replace its own funds utilized for repaying the principal of 24 Orient Securities S1, RMB200 million was invested in science and technology innovation bonds (STI bonds), and RMB400 million was used to provide market-making services for STI bonds.
Effect of promoting the development of science and technology innovation By increasing primary and secondary market investments in STI bonds, and expanding the scale of market-making business for such bonds, we aim to redirect financial resources toward the sci-tech innovation sector. This initiative seeks to enhance the market liquidity, investment appeal, and market recognition of STI bonds, thereby reducing financing and trading costs associated with STI bonds, and supporting financial services in promoting science and technology innovation.
Other matters N/A
Interim Report 2025 DFZQ
Section VII Bonds
3. Other matters on specialized corporate bonds
Unit: 100 million Currency: RMB
| Bond code | 241955.SH |
|---|---|
| Bond abbreviation | 24 Orient Securities 08 |
| Bond balance | 20.00 |
| Sustainability key performance indicator (KPI) | For the key performance indicator (KPI) of the current bonds, the scale of the ESG-related bonds invested with the issuer's own funds was selected. As at the end of 2024, the Company's position in ESG-related bonds invested with its own funds amounted to RMB3,426 million. |
| Sustainability performance target (SPT) | The sustainability performance target (SPT) for the current bonds is an annualized compound growth rate of not less than 15% (inclusive) in the position of the ESG-related bonds invested with its own funds at the end of 2025 compared to the end of 2023, i.e. not less than RMB3,345 million. As at the end of 2024, the Company's position in ESG-related bonds invested with its own funds amounted to RMB3,426 million, representing an annualized compound growth rate of 35.47% from the end of 2023. |
| Achievement of SPT | The time for validation has not been reached and there is currently no impact on the structure of the bonds. |
| Issuance of evaluation opinion or certification report and major content of assessment or certification | China Credit Green Gold Technology (Beijing) Co., Ltd. issued the 2024 verification and assessment report on April 18, 2025, with the contents of the assessment including, but not limited to, the performance results of the linked targets for the previous year, the achievement of sustainability benefits, and the impact of the performance results of the linked targets on the structure of the bonds. |
| Other matters | Nil |
Interim Report 2025 DFZQ
Section VII Bonds
(iv) Significant events relating to corporate bonds during the Reporting Period
- Non-operating fund occupation and intercompany borrowings
As at the beginning of the Reporting Period, the balance of non-operating fund occupation and intercompany borrowings to other parties in the Company's consolidated account receivables that are not directly attributable to production and operations (hereinafter referred to as non-operating fund occupation and intercompany borrowings) was nil.
As at the end of the Reporting Period, the balance of outstanding non-operating fund occupation and intercompany borrowings was nil.
- Liabilities
(1). Interest-bearing debt and its changes
1.1 Debt structure of the Company
As at the beginning and the end of the Reporting Period, the balance of interest-bearing debts of the Company (on a non-consolidated basis) was RMB200.667 billion and RMB205.791 billion, respectively, representing a year-on-year change of 2.55% in the balance of interest-bearing debts during the Reporting Period.
Unit: 100 million Currency: RMB
| Category of interest-bearing debts | Overdue | Maturity period
Within 1 year (inclusive) | Over 1 year (exclusive) | Total amount | Proportion of amount in interest bearing debts (%) |
| --- | --- | --- | --- | --- | --- |
| Corporate credit bonds | – | 217.23 | 388.16 | 605.39 | 29.42 |
| Other interest-bearing debts | – | 1,432.24 | 20.28 | 1,452.52 | 70.58 |
| Total | – | 1,649.47 | 408.44 | 2,057.91 | 100.00 |
As at the end of the Reporting Period, among the existing corporate credit bonds of the Company, the balance of corporate debentures was RMB60.539 billion, the balance of corporate bonds was nil, and the balance of debt financing instruments of non-financial enterprises was nil.
Interim Report 2025 DFZQ
Interim Report 2025 DFZQ
151
Section VII Bonds
1.2 Structure of consolidated interest-bearing debts of the Company
As at the beginning and the end of the Reporting Period, the balance of interest-bearing debts of the Company within the scope of the Company's consolidated statements was RMB208.536 billion and RMB214.733 billion, respectively, representing a year-on-year change of 2.97% in the balance of interest-bearing debts during the Reporting Period.
Unit: 100 million Currency: RMB
| Category of interest-bearing debts | Overdue | Maturity period
Within 1 year (inclusive) | Over 1 year (exclusive) | Total amount | Proportion of amount in interest bearing debts (%) |
| --- | --- | --- | --- | --- | --- |
| Corporate credit bonds | – | 238.89 | 388.16 | 627.05 | 29.20 |
| Loans from banks | – | 12.81 | 4.66 | 17.47 | 0.81 |
| Loans from non-bank financial institutions | – | 0.02 | – | 0.02 | 0.00 |
| Other interest-bearing debts | – | 1,481.50 | 21.29 | 1,502.79 | 69.99 |
| Total | – | 1,733.22 | 414.11 | 2,147.33 | 100.00 |
As at the end of the Reporting Period, among the existing corporate credit bonds of the Company, the balance of corporate bonds was RMB62.705 billion, the balance of enterprise bonds was nil, and the balance of debt financing instruments of non-financial enterprises was nil.
1.3 Overseas bonds
As at the end of the Reporting Period, the balance of overseas bonds issued within the scope of the Company's consolidated statements was USD0.303 billion, and the principal amount maturing within 1 year (inclusive) was USD0.3 billion.
Section VII Bonds
(v) Key accounting data and financial indicators
Unit: '000 Currency: RMB
| Major indicators | As at the end of the Reporting Period | As at the end of last year | Increase or decrease as at the end of the Reporting Period as compared with the end of last year (%) | Reasons for change |
|---|---|---|---|---|
| Current ratio | 0.89 | 0.83 | 7.23 | Increase in current assets |
| Quick ratio | 0.89 | 0.83 | 7.23 | Increase in quick assets |
| Gearing ratio (%) | 73.25 | 73.20 | Increase of 0.05 percentage point | Increase in liabilities |
| Reporting Period (January to June) | Corresponding period of last year | Increase or decrease in the Reporting Period as compared with the corresponding period of last year (%) | Reasons for change | |
| Net profit after deducting non-recurring gains or losses | 3,373,840 | 2,019,409 | 67.07 | Increase in net profit |
| EBITDA to total debts ratio | 0.03 | 0.03 | 0.00 | N/A |
| Interest coverage ratio | 2.88 | 2.11 | 36.49 | Increase in total profit |
| Cash interest coverage ratio | -6.47 | -6.75 | N/A | Decrease in net outflow of operating cash |
| EBITDA interest coverage ratio | 3.06 | 2.32 | 31.90 | Increase in EBITDA before profit |
| Loan repayment rate (%) | 100.00 | 100.00 | 0.00 | N/A |
| Interest repayment ratio (%) | 100.00 | 100.00 | 0.00 | N/A |
Note: Gearing ratio = (Total liabilities – Account payables to brokerage clients – Funds payable to securities issuers)/(Total assets – Account payables to brokerage clients – Funds payable to securities issuers)
II. DURING THE REPORTING PERIOD, THE COMPANY HAD NO CONVERTIBLE CORPORATE DEBENTURES
Interim Report 2025 DFZQ
Section VIII Information Disclosures of Securities Company
I. RELEVANT INFORMATION ON MATERIAL ADMINISTRATIVE LICENSES OF THE COMPANY
| No. | Issued by | Title of document | Number of document | Issuing date |
|---|---|---|---|---|
| 1 | CSRC | Approval Regarding the Registration of Short-term Corporate Bonds Publicly Issued by 東方證券股份有限公司 to Professional Investors | CSRC Approval [2025] No. 369 | February 27, 2025 |
| 2 | CSRC | Approval Regarding the Registration of Perpetual Subordinated Bonds Publicly Issued by 東方證券股份有限公司 to Professional Investors | CSRC Approval [2025] No. 370 | February 27, 2025 |
| 3 | CSRC | Approval Regarding the Registration of Corporate Bonds Publicly Issued by 東方證券股份有限公司 to Professional Investors | CSRC Approval [2025] No. 800 | April 15, 2025 |
Interim Report 2025 DFZQ
Report on Review of Condensed Consolidated Interim Financial Report
To the Board of Directors of Orient Securities Company Limited
(Incorporated in the People's Republic of China with limited liability)
INTRODUCTION
We have reviewed the accompanying interim financial report set out on pages 156 to 232, which comprises the condensed consolidated statement of financial position of Orient Securities Company Limited (the "Company") and its subsidiaries (collectively, the "Group") as at 30 June 2025 and the related condensed consolidated statement of profit or loss, statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the six-month period ended at 30 June 2025 and explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of an interim financial report to be in compliance with the relevant provisions thereof and IAS 34, Interim Financial Reporting, issued by the International Accounting Standards Board. The directors of the Company are responsible for the preparation and presentation of the interim financial report in accordance with IAS 34 Interim Financial Reporting.
Our responsibility is to express a conclusion, based on our review, on the interim financial report and to report our conclusion 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.
SCOPE OF REVIEW
We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the International Auditing and Assurance Standards Board. A review of the interim financial report consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly we do not express an audit opinion.
Interim Report 2025 DFZQ
Report on Review of Condensed Consolidated Interim Financial Report
CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial report as at 30 June 2025 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting.
KPMG
Certified Public Accountants
8th Floor, Prince's Building
10 Chater Road
Central, Hong Kong
29 August 2025
Interim Report 2025 DFZQ
Condensed consolidated statement of profit or loss
For the six months ended 30 June 2025 - unaudited
(Expressed in thousands of Renminbi, unless otherwise stated)
| Note | Six months ended 30 June | ||
|---|---|---|---|
| 2025 | |||
| (Unaudited) | 2024 | ||
| (Unaudited) | |||
| (Restated) | |||
| Revenue | |||
| Commission and fee income | 6 | 5,129,012 | 4,462,488 |
| Interest income | 7 | 2,765,256 | 2,776,347 |
| 7,894,268 | 7,238,835 | ||
| Net investment gains | 8 | 4,020,355 | 2,275,382 |
| Other income, gains and losses, net | 9 | 410,008 | 211,505 |
| Total revenue, other income and net gains and losses | 12,324,631 | 9,725,722 | |
| Depreciation and amortisation | 10 | (391,226) | (403,693) |
| Staff costs | 11 | (2,477,036) | (1,877,911) |
| Commission and fee expenses | (2,242,901) | (1,981,346) | |
| Interest expenses | 12 | (2,303,021) | (2,082,326) |
| Other operating expenses | 13 | (961,873) | (1,023,106) |
| Impairment losses under expected credit loss model, net of reversal | 14 | 3,765 | (312,138) |
| Other impairment losses | (271) | 1,115 | |
| Total expenses | (8,372,563) | (7,679,405) | |
| Share of results of associates | 341,562 | 224,758 | |
| Profit before income tax | 4,293,630 | 2,271,075 | |
| Income tax expense | 15 | (830,727) | (159,397) |
| Profit for the period | 3,462,903 | 2,111,678 | |
| Attributable to: | |||
| Equity holders of the Company | 3,463,071 | 2,111,371 | |
| Non-controlling interests | (168) | 307 | |
| 3,462,903 | 2,111,678 | ||
| Earnings per share attributable to shareholders of the Company | |||
| (Expressed in RMB Yuan per share) | |||
| - Basic | 16 | 0.40 | 0.24 |
The accompanying notes form part of this interim financial report.
Interim Report 2025 DFZQ
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the six months ended 30 June 2025 - unaudited
(Expressed in thousands of Renminbi, unless otherwise stated)
| Six months ended 30 June | ||
|---|---|---|
| 2025 | ||
| (Unaudited) | 2024 | |
| (Unaudited) | ||
| Profit for the period | 3,462,903 | 2,111,678 |
| Other comprehensive income, net of income tax: | ||
| Items that will not be reclassified subsequently to profit or loss: | ||
| Fair value gain on investments in equity instruments at fair value through other comprehensive income | 673,971 | 609,405 |
| Hedging instruments for fair value hedges | - | (27,897) |
| Income tax relating to items that will not be reclassified to profit or loss | (167,446) | (145,541) |
| 506,525 | 435,967 | |
| Share of other comprehensive income of associates | (6,165) | - |
| Subtotal | 500,360 | 435,967 |
| Items that may be reclassified subsequently to profit or loss: | ||
| Fair value gain on debt instruments measured at fair value through other comprehensive income | 2,232,314 | 2,275,562 |
| - net fair value changes during the period | (1,523,265) | (1,427,137) |
| - reclassification adjustment to profit or loss on disposal | ||
| Charge for impairment losses for debt instruments measured at fair value through other comprehensive income | 3,530 | 12,085 |
| Income tax relating to items that may be reclassified subsequently to profit or loss | (162,131) | (218,152) |
| 550,448 | 642,358 | |
| Share of other comprehensive income of associates, net of related income tax | (5,901) | (1,249) |
| Exchange differences arising on translation | 19,017 | (5,237) |
| Others | 8,195 | - |
| Subtotal | 571,759 | 635,872 |
| Other comprehensive income for the period, net of income tax | 1,072,119 | 1,071,839 |
| Total comprehensive income for the period | 4,535,022 | 3,183,517 |
| Attributable to: | ||
| Equity holders of the Company | 4,535,190 | 3,183,210 |
| Non-controlling interests | (168) | 307 |
| 4,535,022 | 3,183,517 |
The accompanying notes form part of this interim financial report.
Interim Report 2025 DFZQ
Condensed Consolidated Statement of Financial Position
As at 30 June 2025 – unaudited
(Expressed in thousands of Renminbi, unless otherwise stated)
| Note | As at 30 June 2025 (Unaudited) | As at 31 December 2024 (Audited) (Restated) | |
|---|---|---|---|
| Cash and bank balances | 17 | 96,696,398 | 103,093,101 |
| Clearing settlement funds | 19 | 19,845,992 | 15,177,207 |
| Deposits with exchanges and financial institutions | 20 | 31,263,450 | 27,654,365 |
| Derivative financial assets | 21 | 3,526,185 | 1,965,131 |
| Advances to customers | 22 | 27,765,643 | 28,047,525 |
| Account receivables | 23 | 1,824,289 | 973,364 |
| Reverse repurchase agreements | 24 | 3,015,069 | 3,984,103 |
| Financial assets at fair value through profit or loss | 25 | 116,338,016 | 90,189,331 |
| Debt instruments at fair value through other comprehensive income | 26 | 94,429,620 | 110,519,911 |
| Equity instruments at fair value through other comprehensive income | 27 | 26,629,092 | 19,634,600 |
| Debt instruments measured at amortised cost | 28 | 1,575,495 | 1,586,905 |
| Investments in associates | 29 | 6,060,012 | 6,128,123 |
| Right-of-use assets | 975,138 | 1,072,423 | |
| Investment properties | 5,521 | 30,936 | |
| Property and equipment | 32 | 2,572,291 | 2,602,196 |
| Other intangible assets | 240,895 | 272,393 | |
| Goodwill | 32,135 | 32,135 | |
| Deferred tax assets | 33 | 676,590 | 1,490,513 |
| Other assets | 34 | 3,886,351 | 3,282,113 |
| Total assets | 437,358,182 | 417,736,375 |
The accompanying notes form part of this interim financial report.
Interim Report 2025 DFZQ
Condensed Consolidated Statement of Financial Position
As at 30 June 2025 – unaudited
(Expressed in thousands of Renminbi, unless otherwise stated)
| | Note | As at
30 June
2025
(Unaudited) | As at
31 December
2024
(Audited) |
| --- | --- | --- | --- |
| Placements from banks and financial institutions | 35 | 29,327,263 | 39,194,625 |
| Short-term debt instruments | 36 | 4,130,895 | 5,678,905 |
| Account payables to brokerage clients | 37 | 120,249,508 | 113,637,365 |
| Repurchase agreements | 38 | 100,150,319 | 85,916,300 |
| Financial liabilities at fair value through profit or loss | 39 | 20,185,009 | 14,708,501 |
| Derivative financial liabilities | 21 | 3,803,744 | 1,092,582 |
| Contract liabilities | | 48,569 | 44,877 |
| Current tax liabilities | | 200,661 | 93,183 |
| Accrued staff costs | | 2,734,220 | 2,370,667 |
| Borrowings | 40 | 1,748,727 | 1,549,417 |
| Lease liabilities | | 959,876 | 1,058,950 |
| Debt securities issued | 41 | 59,190,632 | 60,734,318 |
| Deferred tax liabilities | 33 | 44,241 | 218 |
| Other liabilities | 42 | 9,749,527 | 10,256,651 |
| Total liabilities | | 352,523,191 | 336,336,559 |
| Share capital | 43 | 8,496,645 | 8,496,645 |
| Treasury stock | | (561,002) | (310,896) |
| Other equity instrument | 45 | 5,000,000 | 5,000,000 |
| Reserves | 46 | 61,870,413 | 60,059,496 |
| Retained earnings | | 10,026,027 | 8,151,495 |
| Equity attributable to equity holders of the Company | | 84,832,083 | 81,396,740 |
| Non-controlling interests | | 2,908 | 3,076 |
| Total equity | | 84,834,991 | 81,399,816 |
| Total equity and liabilities | | 437,358,182 | 417,736,375 |
Approved and authorised for issue by the Board of Directors on 29 August 2025.
Gong Dexiong
Chairman of the Board
Lu Dayin
Executive Director
The accompanying notes form part of this interim financial report.
Interim Report 2025 DFZQ
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2025 - unaudited
(Expressed in thousands of Renminbi, unless otherwise stated)
Equity attributable to equity holders of the Company
| Note | Reserves | Non-controlling interests | Total equity | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Share capital | Treasury stock | Other equity instrument | Capital reserve | Surplus reserve | General reserve | Investment revaluation reserve | Translation reserve | Hedge reserve | Retained earnings | Subtotal | ||||
| As at 1 January 2025 | 8,496,645 | (310,896) | 5,000,000 | 39,534,520 | 5,032,049 | 13,249,808 | 2,232,418 | 8,745 | 1,956 | 8,151,495 | 81,396,740 | 3,076 | 81,399,816 | |
| Profit/(loss) for the period | - | - | - | - | - | - | - | - | - | 3,463,071 | 3,463,071 | (168) | 3,462,903 | |
| Other comprehensive income for the period | - | - | - | - | - | - | 1,053,102 | 19,017 | - | - | 1,072,119 | - | 1,072,119 | |
| Total comprehensive income for the period | - | - | - | - | - | - | 1,053,102 | 19,017 | - | 3,463,071 | 4,535,190 | (168) | 4,535,022 | |
| Repurchase of A shares | - | (250,106) | - | - | - | - | - | - | - | - | (250,106) | - | (250,106) | |
| Appropriation to surplus reserve | - | - | - | - | 62,761 | - | - | - | - | (62,761) | - | - | - | |
| Appropriation to general reserve | - | - | - | - | - | 684,302 | - | - | - | (684,302) | - | - | - | |
| Distribution to holders of other equity instrument | 44 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Dividends recognised as distribution | 44 | - | - | - | - | - | - | - | - | - | (843,446) | (843,446) | - | (843,446) |
| Transfer to retained earnings for cumulative fair value change of equity instruments at fair value through other comprehensive income upon disposal | - | - | - | - | - | - | (14) | - | (1,956) | 1,970 | - | - | - | |
| Other | - | - | - | (6,295) | - | - | - | - | - | - | (6,295) | - | (6,295) | |
| As at 30 June 2025 (Unaudited) | 8,496,645 | (561,002) | 5,000,000 | 39,528,225 | 5,094,810 | 13,934,110 | 3,285,506 | 27,762 | - | 10,026,027 | 84,832,083 | 2,908 | 84,834,991 |
The accompanying notes form part of this interim financial report.
Interim Report 2025 DFZQ
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2025 - unaudited
(Expressed in thousands of Renminbi, unless otherwise stated)
| Equity attributable to equity holders of the Company | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Note | Share capital | Treasury stock | Other equity instrument | Reserves | Retained earnings | Subtotal | Non-controlling interests | Total equity | |||||
| Capital reserve | Surplus reserve | General reserve | Investment revaluation reserve | Translation reserve | |||||||||
| As at 1 January 2024 | 8,496,645 | (299,780) | 5,000,000 | 39,534,520 | 4,618,006 | 12,134,542 | 489,687 | 2,190 | 12,325 | 8,757,396 | 78,745,531 | 14,666 | |
| Profit for the period | - | - | - | - | - | - | - | - | - | 2,111,371 | 2,111,371 | 307 | |
| Other comprehensive income for the period | - | - | - | - | - | - | 1,098,000 | (5,237) | (20,924) | - | 1,071,839 | - | |
| Total comprehensive income for the period | - | - | - | - | - | - | 1,098,000 | (5,237) | (20,924) | 2,111,371 | 3,183,210 | 307 | |
| Repurchase of A shares | - | (11,116) | - | - | - | - | - | - | - | - | (11,116) | - | |
| Appropriation to surplus reserve | - | - | - | - | 295,657 | - | - | - | - | (295,657) | - | - | |
| Appropriation to general reserve | - | - | - | - | - | 662,846 | - | - | - | (662,846) | - | - | |
| Distribution to holders of other equity instrument | 44 | - | - | - | - | - | - | - | - | - | (237,500) | (237,500) | - |
| Dividends recognised as distribution | 44 | - | - | - | - | - | - | - | - | - | (1,269,270) | (1,269,270) | - |
| Transfer to retained earnings for cumulative fair value change of equity instruments at fair value through other comprehensive income upon disposal | - | - | - | - | - | - | 32,806 | - | - | (32,806) | - | - | |
| Other | - | - | - | - | - | - | - | - | 4,253 | (4,253) | - | (4,133) | |
| As at 30 June 2024 (Unaudited) | 8,496,645 | (310,896) | 5,000,000 | 39,534,520 | 4,913,663 | 12,797,388 | 1,620,493 | (3,047) | (4,346) | 8,366,435 | 80,410,855 | 10,840 |
The accompanying notes form part of this interim financial report.
Interim Report 2025 DFZQ
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2025 - unaudited
(Expressed in thousands of Renminbi, unless otherwise stated)
| Six months ended 30 June | ||
|---|---|---|
| 2025 | ||
| (Unaudited) | 2024 | |
| (Unaudited) | ||
| OPERATING ACTIVITIES | ||
| Profit before income tax | 4,293,630 | 2,271,075 |
| Adjustments for: | ||
| Interest expenses | 2,303,021 | 2,082,326 |
| Share of results of associates | (341,562) | (224,758) |
| Depreciation and amortisation | 391,226 | 403,693 |
| Impairment losses under expected credit loss model, net of reversal | (3,765) | 312,138 |
| Other impairment losses | 271 | (1,115) |
| Losses/(gains) on disposal of property and equipment, right-of-use assets and investment properties | 1,569 | (20,222) |
| Foreign exchange gains, net | (233,551) | (15,269) |
| Net realised gains and income arising from financial assets at fair value through profit or loss | - | (103,323) |
| Net realised gains and income arising from debt instruments at fair value through other comprehensive income | (2,885,690) | (2,825,970) |
| Dividend income arising from equity instruments at fair value through other comprehensive income | (620,017) | (277,596) |
| Net realised losses arising from financial liabilities at fair value through profit or loss | 92,008 | 60,510 |
| Net realised gains and interest income from debt instruments measured at amortised cost | (23,640) | (23,704) |
| Unrealised fair value change of financial assets at fair value through profit or loss | (527,180) | 310,096 |
| Unrealised fair value change of financial liabilities at fair value through profit or loss | (350,781) | (32,791) |
| Unrealised fair value change of derivative financial instruments | 481,350 | (967,955) |
| Other net investment gains | - | (29,569) |
| Operating cash flows before movements in working capital | 2,576,889 | 917,566 |
The accompanying notes form part of this interim financial report.
Interim Report 2025 DFZQ
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2025 - unaudited
(Expressed in thousands of Renminbi, unless otherwise stated)
| Six months ended 30 June | ||
|---|---|---|
| 2025 | ||
| (Unaudited) | 2024 | |
| (Unaudited) | ||
| Operating cash flows before movements in working capital | 2,576,889 | 917,566 |
| Decrease/(increase) in advances to customers | 280,936 | (2,108,682) |
| Decrease in reverse repurchase agreements | 971,874 | 1,344,131 |
| Increase in financial assets at fair value through profit or loss and derivative financial assets | (27,663,909) | (1,959,611) |
| (Increase)/decrease in restricted deposits and deposits with exchanges and financial institutions | (834,381) | 688,406 |
| (Increase)/decrease in bank balances and clearing settlement funds held on behalf of customers | (753,297) | 15,976,603 |
| Increase in account receivables and other assets | (1,203,558) | (408,391) |
| (Decrease)/increase in other liabilities and contract liabilities | (300,641) | 972,389 |
| Increase/(decrease) in account payables to brokerage clients | 6,612,143 | (15,980,484) |
| Increase/(decrease) in financial liabilities at fair value through profit or loss and derivatives financial liabilities | 4,569,584 | (632,792) |
| Increase in repurchase agreements | 14,153,869 | 3,008,348 |
| (Decrease)/increase placements from banks and other financial institutions | (9,935,238) | 37,669 |
| Cash (used in)/generated from operations | (11,525,729) | 1,855,152 |
| Income taxes paid | (194,880) | (236,379) |
| Interest paid | (1,123,190) | (1,104,098) |
| Net cash (used in)/generated from operating activities | (12,843,799) | 514,675 |
The accompanying notes form part of this interim financial report.
Interim Report 2025 DFZQ
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2025 - unaudited
(Expressed in thousands of Renminbi, unless otherwise stated)
| Note | Six months ended 30 June | ||
|---|---|---|---|
| 2025 | |||
| (Unaudited) | 2024 | ||
| (Unaudited) | |||
| INVESTING ACTIVITIES | |||
| Dividends and interest received from investments | 2,263,695 | 2,193,926 | |
| Proceeds on disposal of property and equipment and investment properties | 6,459 | 162,358 | |
| Proceeds on disposal or redemption of: | |||
| financial assets at fair value through profit or loss | - | 11,346,603 | |
| equity instruments at fair value through other comprehensive income | 833,548 | 443,432 | |
| debt instruments at fair value through other comprehensive income | 192,738,622 | 159,421,512 | |
| debt instruments measured at amortised cost | - | - | |
| Capital injection in associates | (35,000) | - | |
| Purchases of: | |||
| financial assets at fair value through profit or loss | - | (10,635,748) | |
| equity instruments at fair value through other comprehensive income | (7,154,069) | (7,487,227) | |
| debt instruments at fair value through other comprehensive income | (174,769,326) | (153,799,229) | |
| Purchases of property and equipment and other intangible assets | (133,168) | (125,430) | |
| Proceeds from disposal of or capital reduction from associates and others | 221,787 | 149,524 | |
| Cash outflow from hedging instrument | - | (5,671) | |
| Net cash generated from investing activities | 13,972,548 | 1,664,050 |
The accompanying notes form part of this interim financial report.
Interim Report 2025 DFZQ
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2025 - unaudited
(Expressed in thousands of Renminbi, unless otherwise stated)
| Note | Six months ended 30 June | ||
|---|---|---|---|
| 2025 | |||
| (Unaudited) | 2024 | ||
| (Unaudited) | |||
| FINANCING ACTIVITIES | |||
| Proceeds from issuance of debt securities, short-term financing | |||
| bills payable and income certificates designated at fair value | |||
| through profit and loss | 21,943,538 | 13,895,867 | |
| Repayments on debt securities issued, short-term financing | |||
| bill payables and income certificates designated at fair value | |||
| through profit and loss | (21,039,717) | (19,354,125) | |
| Proceeds from borrowings | 4,290,333 | 1,048,166 | |
| Repayments of borrowings | (4,064,963) | (1,491,102) | |
| Repayments of lease liabilities | (180,287) | (180,479) | |
| Dividends paid to shareholders | (843,446) | (1,269,270) | |
| Interest paid on debt securities issued, short-term | |||
| financing bills payable and income certificates designated | |||
| at fair value through profit and loss | (980,868) | (1,038,949) | |
| Interest paid on borrowings | (35,541) | (43,319) | |
| Interest paid on lease liabilities | (14,594) | (16,740) | |
| Payment for repurchase of A-shares | (250,106) | (11,116) | |
| Payments on capital returned to non-controlling shareholders | - | (4,133) | |
| Net cash used in financing activities | (1,175,651) | (8,465,200) | |
| Net decrease in cash and cash equivalents | (46,902) | (6,286,475) | |
| Cash and cash equivalents at beginning of the period | 18 | 19,744,675 | 23,090,236 |
| Effect of foreign exchange rate changes | 340,391 | (6,235) | |
| Cash and cash equivalents at end of the period | 18 | 20,038,164 | 16,797,526 |
The accompanying notes form part of this interim financial report.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
1. GENERAL INFORMATION
東方證券股份有限公司, formerly known as Orient Securities Limited Liability Company (東方證券有限責任公司), was a limited liability company established on 10 December 1997. On 8 October 2003, upon approval from the China Securities Regulatory Commission ("CSRC") and the Shanghai Municipal Government, Orient Securities Limited Liability Company was converted into a joint stock limited liability company, and was renamed as 東方證券股份有限公司 (the "Company"). On 23 March 2015, the Company became listed on the Shanghai Stock Exchange with the stock code of 600958. On 8 July 2016, the Company became listed on The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") with the stock code of 03958.
The registered office of the Company is located at Orient Securities Building, No. 119, South Zhongshan Road, Shanghai, the People's Republic of China ("PRC").
The Company and its subsidiaries (the "Group") are principally engaged in securities and futures brokerage, margin financing and securities lending, securities investment advisory, securities proprietary trading, asset management, agency sale of financial products, securities underwriting and sponsorship, and other business activities approved by the CSRC.
The condensed consolidated interim financial statements are presented in Renminbi ("RMB"), which is also the functional currency of the Company.
2. BASIS OF ACCOUNTING
These interim financial statements for the six months ended 30 June 2025 have been prepared in accordance with IAS 34, "Interim Financial Reporting", as well as with all applicable disclosures required by the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.
The condensed consolidated interim financial information should be read in conjunction with the Group's last annual consolidated financial statements as at and for the year ended 31 December 2024 ("last annual financial statements"). They do not include all of the information required for a complete set of financial statements prepared in accordance with International Financial Reporting Standards ("IFRS"). However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in Group's financial position and performance since the last annual financial statements.
The interim financial report has been prepared in accordance with the same accounting policies adopted in last annual financial statements, except for the accounting policy changes that are expected to be reflected in the 2025 annual financial statements. Details of any changes in accounting policies are set out in Note 4.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
3. USE OF JUDGEMENTS AND ESTIMATES
The preparation of condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, and income and expenses. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainties were the same as those that applied to the Group’s consolidated financial statements for the year ended 31 December 2024.
4. CHANGES IN ACCOUNTING POLICIES
Except as described below, the accounting policies applied in these interim financial statements are the same as those applied in the Group’s consolidated financial statements as at and for the year ended 31 December 2024.
(i) The Group has applied the amendments to IAS 21, The effects of changes in foreign exchange rates – Lack of exchangeability issued by the International Accounting Standards Board (“IASB”) to this interim financial report for the current accounting period. The amendments do not have a material impact on this interim report as the Group has not entered into any foreign currency transactions in which the foreign currency is not exchangeable into another currency.
(ii) Voluntary Change in Accounting Policy
The Group voluntarily made a change in accounting policy related to physical settlement of contracts to buy or sell bulk commodities that fail the own-use exception. Previously, for contracts involving the sale of bulk commodities, the Group recognised sales revenue and cost of sales when the customer obtained the control of the commodity. Considering the practical guidance issued by the relevant regulatory authority and the economic substance of these transactions, effective on 1 January 2025, such transactions are accounted for as settlement of the sales contracts without recognising any sales revenue or cost of sales. The impact of this change in accounting policy has been applied retrospectively, and comparative figures have been adjusted accordingly.
The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
5. SEGMENT REPORTING
Information reported to the Board of Directors, being the chief operating decision maker (hereinafter refer to as the "CODM") of the Company, for the purposes of resource allocation and assessment of segment performance focuses on the nature of products sold and services provided by the Group, which is also consistent with the Group's basis of organisation, whereby the businesses are organised and managed separately as individual strategic business units that offer different products and serve different markets. Segment information is measured in accordance with the accounting policies and measurement criteria adopted by each segment when reporting to CODM, which are consistent with the accounting and measurement criteria in the preparation of the condensed consolidated interim financial statements. The inter-segment revenue and expenses arising from internal use of funds are determined by internal transfer price. In 2024, the management of the Group began to allocate resources and assess the segment's performance based on the updated operating segment classification. Comparative figures are re-presented accordingly.
Specifically, the Group's reportable and operating segments are as follows:
(a) The Wealth and Asset Management segment primarily includes services such as securities brokerage, financial products distribution, investment advisory services, margin financing and securities lending, futures business, and asset management services;
(b) The Investment Banking and Alternative Investment segment includes equity underwriting and sponsorship, bond underwriting, financial advisory services, corporate diversified solutions, and alternative investment businesses;
(c) The Institutional and Sales Trading segment consists of proprietary investments, client-driven businesses, market-making activities, research services, and custody services. Proprietary investments involve trading in equities, fixed income, commodities, and foreign exchange. Client-driven business includes OTC derivatives and FICC-based client services (Fixed Income, Currencies, and Commodities);
(d) The International and Other Operations segment mainly focuses on international business conducted through overseas subsidiaries and platforms, including securities and futures brokerage, asset management, investment banking, and margin financing operations. Other non-core business activities are also included in this category.
Inter-segment transactions, if any, are conducted with reference to the prices charged to third parties and there was no change in the basis during the six months ended 30 June 2025 and 2024.
Segment profit/loss represents the profit earned/loss incurred by each segment without allocation of income tax expenses. This is the measure reported to the CODM for the purposes of resource allocation and performance assessment.
Segment assets/liabilities are allocated to each segment. Inter-segment balances eliminations mainly include amount due from/to another segment arising from activities carried out by one segment for another segment.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
5. SEGMENT REPORTING (Continued)
The segment information provided to the CODM for the six months ended 30 June 2025 and 2024 are as follows:
Operating segment
| | Wealth
and asset
management
RMB 000 | Investment
banking and
alternative
investment
RMB 000 | Institutional
and sales
trading
RMB 000 | International
and other
operations
RMB 000 | Segment
total
RMB 000 | Eliminations
RMB 000 | Consolidated
total
RMB 000 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| For the six months ended 30 June 2025 | | | | | | | |
| Unaudited | | | | | | | |
| Segment revenue and results | | | | | | | |
| Segment revenue and net investment gains | 4,955,993 | 981,347 | 4,956,461 | 2,245,319 | 13,139,120 | (1,224,497) | 11,914,623 |
| Segment other income, gains and losses, net | 96,455 | 11,208 | 98,794 | 205,316 | 411,773 | (1,765) | 410,008 |
| Segment revenue, other income and
net gains and losses | 5,052,448 | 992,555 | 5,055,255 | 2,450,635 | 13,550,893 | (1,226,262) | 12,324,631 |
| Segment expenses | (4,338,381) | (401,781) | (2,225,288) | (2,623,761) | (9,589,211) | 1,216,648 | (8,372,563) |
| Segment results | 714,067 | 590,774 | 2,829,967 | (173,126) | 3,961,682 | (9,614) | 3,952,068 |
| Share of results of associates | 78,304 | 57,378 | - | 205,880 | 341,562 | - | 341,562 |
| Profit/(loss) before income tax | 792,371 | 648,152 | 2,829,967 | 32,754 | 4,303,244 | (9,614) | 4,293,630 |
| As at 30 June 2025 | | | | | | | |
| Unaudited | | | | | | | |
| Segment assets and liabilities | | | | | | | |
| Segment assets | 182,403,335 | 9,658,881 | 200,069,820 | 71,500,019 | 463,632,055 | (26,273,873) | 437,358,182 |
| Segment liabilities | 136,902,078 | 344,033 | 137,071,700 | 85,543,419 | 359,861,230 | (7,338,039) | 352,523,191 |
| For the six months ended 30 June 2025 | | | | | | | |
| Unaudited | | | | | | | |
| Other segment information | | | | | | | |
| Amounts included in the measure of segment
profit or loss or segment assets: | | | | | | | |
| Depreciation and amortisation | 214,634 | 21,861 | 27,898 | 129,854 | 394,247 | (3,021) | 391,226 |
| Charge for impairment losses | 68,444 | (259) | 3,642 | (75,321) | (3,494) | - | (3,494) |
| Capital expenditure | 181,971 | 2,054 | 192 | 91,165 | 275,382 | - | 275,382 |
Interim Report 2025 DFZQ
170 Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
5. SEGMENT REPORTING (Continued)
Operating segment (Continued)
| Wealth and asset management RMB'000 | Investment banking and alternative investment RMB'000 | Institutional and sales trading RMB'000 | International and other operations RMB'000 | Segment total RMB'000 | Eliminations RMB'000 | Consolidated total RMB'000 | |
|---|---|---|---|---|---|---|---|
| For the six months ended 30 June 2024 | |||||||
| Unaudited | |||||||
| Segment revenue and results | |||||||
| Segment revenue and net investment gains | 4,283,213 | 677,266 | 3,892,403 | 3,357,819 | 12,210,701 | (2,696,484) | 9,514,217 |
| Segment other income, gains and losses, net | 90,250 | 66,667 | (566) | 55,154 | 211,505 | - | 211,505 |
| Segment revenue, other income and net gains and losses | 4,373,463 | 743,933 | 3,891,837 | 3,412,973 | 12,422,206 | (2,696,484) | 9,725,722 |
| Segment expenses | (4,402,831) | (643,303) | (2,063,294) | (2,120,616) | (9,230,044) | 1,550,639 | (7,679,405) |
| Segment results | (29,368) | 100,630 | 1,828,543 | 1,292,357 | 3,192,162 | (1,145,845) | 2,046,317 |
| Share of results of associates | 238,418 | 8,623 | - | (29,825) | 217,216 | 7,542 | 224,758 |
| Profit/(loss) before income tax | 209,050 | 109,253 | 1,828,543 | 1,262,532 | 3,409,378 | (1,138,303) | 2,271,075 |
| As at 30 June 2024 | |||||||
| Unaudited | |||||||
| Segment assets and liabilities | |||||||
| Segment assets | 155,615,236 | 12,587,158 | 168,232,270 | 55,211,439 | 391,646,103 | (24,099,249) | 367,546,854 |
| Segment liabilities | 105,574,052 | 2,326,265 | 112,030,689 | 71,634,854 | 291,565,860 | (4,440,701) | 287,125,159 |
| For the six months ended 30 June 2024 | |||||||
| Unaudited | |||||||
| Other segment information | |||||||
| Amounts included in the measure of segment profit or loss or segment assets: | |||||||
| Depreciation and amortisation | 216,035 | 26,330 | 27,286 | 134,042 | 403,693 | - | 403,693 |
| Charge for impairment losses | 297,240 | 82 | 12,806 | 895 | 311,023 | - | 311,023 |
| Capital expenditure | 312,411 | 1,317 | 8,248 | 644,427 | 966,403 | - | 966,403 |
The Group's non-current assets are mainly located in the PRC (country of domicile). The Group's revenue are substantially derived from its operations in the PRC.
The Group has no single customer which contributes to 10 percent or more of the Group's revenue for the six months ended 30 June 2025 and 2024.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
6. COMMISSION AND FEE INCOME
| Six months ended 30 June | ||
|---|---|---|
| 2025 RMB'000 (Unaudited) | 2024 RMB'000 (Unaudited) | |
| Commission on securities dealing, broking and handling fee income | 1,311,610 | 962,319 |
| Asset and fund management fee income | 644,632 | 744,134 |
| Underwriting, sponsors and financial advisory fee income | 770,408 | 591,701 |
| Commission on futures and options contracts dealing, broking and handling fee income | 2,194,848 | 1,964,447 |
| Consultancy fee income | 45,682 | 38,373 |
| Others | 161,832 | 161,514 |
| Total | 5,129,012 | 4,462,488 |
7. INTEREST INCOME
| Six months ended 30 June | ||
|---|---|---|
| 2025 RMB'000 (Unaudited) | 2024 RMB'000 (Unaudited) | |
| Advances to customers | 620,657 | 533,493 |
| Financial assets held under resale agreements | 40,612 | 70,321 |
| Deposits with exchanges and financial institutions and bank balances | 706,616 | 749,374 |
| Interest income from debt instruments measured at amortised cost | 23,640 | 23,704 |
| Interest income from debt instruments at fair value through other comprehensive income ("FVOCI") | 1,368,291 | 1,399,036 |
| Others | 5,440 | 419 |
| Total | 2,765,256 | 2,776,347 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
8. NET INVESTMENT GAINS
| Six months ended 30 June | ||
|---|---|---|
| 2025 | ||
| RMB'000 | ||
| (Unaudited) | 2024 | |
| RMB'000 | ||
| (Unaudited) | ||
| Net realised gains from disposal of debt instruments at FVOCI | 1,517,399 | 1,426,934 |
| Net realised gains from disposal of financial assets at fair value through profit or loss ("FVTPL") | 1,212,312 | 621,473 |
| Net realised losses arising from financial liabilities at FVTPL | (214,741) | (430,059) |
| Net realised losses arising from derivative financial instruments | (362,733) | (816,739) |
| Dividend income from equity instruments at FVOCI | 620,017 | 277,596 |
| Dividend income and interest income from financial assets at FVTPL | 1,083,188 | 1,023,760 |
| Unrealised fair value change of financial assets at FVTPL | 527,180 | (310,096) |
| Unrealised fair value change of financial liabilities at FVTPL | 350,781 | 32,791 |
| Unrealised fair value change of derivative financial instruments | (481,350) | 411,273 |
| Others | (231,698) | 38,449 |
| Total | 4,020,355 | 2,275,382 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
9. OTHER INCOME, GAINS AND LOSSES, NET
| Six months ended 30 June | ||
|---|---|---|
| 2025 RMB'000 (Unaudited) | 2024 RMB'000 (Unaudited) | |
| Foreign exchange gains, net | 233,551 | 15,269 |
| Rental income | 851 | 2,152 |
| Government grants | 121,295 | 125,286 |
| Others | 54,311 | 68,798 |
| Total | 410,008 | 211,505 |
10. DEPRECIATION AND AMORTISATION
| Six months ended 30 June | ||
|---|---|---|
| 2025 RMB'000 (Unaudited) | 2024 RMB'000 (Unaudited) | |
| Depreciation of property and equipment | 134,645 | 143,551 |
| Depreciation of right-of-use assets | 179,241 | 179,421 |
| Depreciation of investment properties | 256 | 3,416 |
| Amortisation of other intangible assets | 77,084 | 77,305 |
| Total | 391,226 | 403,693 |
11. STAFF COSTS
Staff costs mainly include salaries, bonus and allowances amounting to RMB2,129 million and RMB1,533 million for the period ended 30 June 2025 and 2024 respectively.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
12. INTEREST EXPENSES
| Six months ended 30 June | ||
|---|---|---|
| 2025 | ||
| RMB’000 | ||
| (Unaudited) | 2024 | |
| RMB’000 | ||
| (Unaudited) | ||
| Account payables to brokerage clients | 23,624 | 43,058 |
| Financial assets sold under repurchase agreements | 873,466 | 750,484 |
| Borrowings | 35,325 | 44,354 |
| Placements from banks and financial institutions | 362,531 | 249,087 |
| Short-term financing bills payable | 74,162 | 35,624 |
| Debt securities issued | 919,319 | 942,934 |
| Lease liabilities | 14,594 | 16,785 |
| Total | 2,303,021 | 2,082,326 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
13. OTHER OPERATING EXPENSES
| Six months ended 30 June | ||
|---|---|---|
| 2025 RMB'000 (Unaudited) | 2024 RMB'000 (Unaudited) | |
| Products distribution expenses | 191,769 | 229,158 |
| Electronic equipment operating expenses | 179,359 | 171,079 |
| Administrative expenses | 109,692 | 127,966 |
| Communication expenses | 107,252 | 133,481 |
| Stock exchanges management fees | 67,116 | 60,978 |
| Tax and surcharges | 51,075 | 41,866 |
| Sundry expenses | 45,510 | 54,664 |
| Advisory expenses | 39,305 | 57,275 |
| Business travel expenses | 39,055 | 52,003 |
| Securities and futures investor protection funds | 33,772 | 31,229 |
| Entertainment expenses | 26,537 | 30,771 |
| Auditor's remuneration | 3,973 | 5,949 |
| Short-term leases and low value assets rental expenses | 4,900 | 5,437 |
| Donation | 3,365 | 2,979 |
| Others | 59,193 | 18,271 |
| Total | 961,873 | 1,023,106 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
14. IMPAIRMENT LOSSES UNDER EXPECTED CREDIT LOSS MODEL, NET OF REVERSAL
| Six months ended 30 June | ||
|---|---|---|
| 2025 RMB'000 (Unaudited) | 2024 RMB'000 (Unaudited) | |
| Expected credit losses ("ECL") in respect of | ||
| - Reverse repurchase agreements | 67,216 | 301,764 |
| - Advances to customers | 1,028 | 185 |
| - Account receivables and other receivables | (75,798) | (2,160) |
| - Debt instruments at FVOCI | 3,527 | 12,343 |
| - Debt instruments measured at amortised cost | 262 | 6 |
| Total | (3,765) | 312,138 |
15. INCOME TAX EXPENSE
| Six months ended 30 June | ||
|---|---|---|
| 2025 RMB'000 (Unaudited) | 2024 RMB'000 (Unaudited) | |
| Current tax: | ||
| - PRC Enterprise Income Tax | 280,544 | 232,245 |
| - Hong Kong Profits Tax | 10,116 | 2,997 |
| 290,660 | 235,242 | |
| Adjustments in respect of current income tax in relation to prior years: | ||
| - PRC Enterprise Income Tax | 10,205 | (4,654) |
| Deferred tax | 529,862 | (71,191) |
| Total | 830,727 | 159,397 |
Under the Enterprise Income Tax of the PRC and its Implementation Regulation (the "EIT Law"), the tax rate of the Group's PRC subsidiaries is 25%.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
16. EARNINGS PER SHARE
The calculation of basic earnings per share attributable to shareholders of the Company is as follows:
| Six months ended 30 June | ||
|---|---|---|
| 2025 | ||
| (Unaudited) | 2024 | |
| (Unaudited) | ||
| Earnings for the purpose of basic earnings per share (RMB'000): | ||
| Profit for the period attributable to equity holders of the Company | 3,463,071 | 2,111,371 |
| Less: profit attributable to holders of perpetual subordinated bond | (117,774) | (118,750) |
| Subtotal | 3,345,297 | 1,992,621 |
| Number of shares (in thousand): | ||
| Number of issued shares on 1 January | 8,461,802 | 8,463,159 |
| Effect of treasury stock (Note 43) | (4,271) | (1,131) |
| Weighted average number of ordinary shares in issue | 8,457,531 | 8,462,028 |
| Basic earnings per share (RMB Yuan) | 0.40 | 0.24 |
For the six months ended 30 June 2025 and 2024, there were no potential ordinary shares in issue.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated
Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
17. CASH AND BANK BALANCES
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| House accounts | 16,686,986 | 19,127,541 |
| including: restricted bank deposits (Note a) | 1,725,834 | 2,095,282 |
| Cash held on behalf of clients (Note b) | 80,009,412 | 83,965,560 |
| Total | 96,696,398 | 103,093,101 |
Cash and bank balances comprise cash on hand and demand deposits which bear interest at the prevailing market rates.
Note a: The restricted bank deposits as of 30 June 2025 and 31 December 2024 included pledged bank deposits and other restricted bank deposits.
Note b: The Group maintains bank accounts to hold customers' deposits arising from normal business transactions. The Group has recognised the corresponding amount in account payables to brokerage clients (Note 37).
18. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise the following:
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Cash and bank balances | 16,656,115 | 19,064,050 |
| Clearing settlement funds | 7,700,656 | 7,741,316 |
| Less: clearing settlement funds of
Shanghai Orient Securities Futures Co., Ltd. | (16,000) | (16,000) |
| bank deposits with original maturity of more than three months | (2,576,773) | (4,949,409) |
| restricted bank deposits | (1,725,834) | (2,095,282) |
| Total | 20,038,164 | 19,744,675 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Fenminbi, unless otherwise stated)
19. CLEARING SETTLEMENT FUNDS
| | As at
30 June
2025
RMB’000
(Unaudited) | As at
31 December
2024
RMB’000
(Audited) |
| --- | --- | --- |
| Clearing settlement funds held with clearing houses for: | | |
| House accounts | 7,700,656 | 7,741,316 |
| Clients | 12,145,336 | 7,435,891 |
| Total | 19,845,992 | 15,177,207 |
20. DEPOSITS WITH EXCHANGES AND FINANCIAL INSTITUTIONS
| | As at
30 June
2025
RMB’000
(Unaudited) | As at
31 December
2024
RMB’000
(Audited) |
| --- | --- | --- |
| Trading deposits | 29,834,658 | 26,331,883 |
| Credit deposits | 52,669 | 42,396 |
| Performance deposits | 1,376,123 | 1,280,086 |
| Total | 31,263,450 | 27,654,365 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
21. DERIVATIVE FINANCIAL INSTRUMENTS
As at 30 June 2025 (Unaudited)
| | Notional amounts
RMB'000 | Fair Value Assets
RMB'000 | Liabilities
RMB'000 |
| --- | --- | --- | --- |
| Non-hedging instruments | | | |
| Interest rate derivatives | | | |
| Interest rate swaps | 1,618,125,160 | 171,561 | 165,281 |
| Treasury bond futures | 69,802,197 | 1,940 | 869 |
| Collar options | 4,532,775 | 565 | 23,062 |
| Equity derivatives | | | |
| Stock index futures | 8,758,575 | – | – |
| Equity linked derivatives | 4,093,250 | 32,650 | 168,016 |
| Stock index options | 17,019,369 | 67,620 | 203,592 |
| Equity total return swap | 5,096,369 | 62,068 | 126,062 |
| Credit derivatives | | | |
| Credit default swaps | 1,158,000 | 10,331 | 127 |
| Other derivative instruments | | | |
| Non-equity total return swap | 12,168,053 | 143,350 | 115,810 |
| Foreign exchange options | 24,140,454 | 19,412 | 71,002 |
| Foreign exchange swaps | 100,348,973 | 74,575 | 55,339 |
| Foreign exchange forwards | 942,145 | 118 | 18 |
| Commodity futures | 20,317,862 | – | – |
| Commodity options | 46,717,522 | 1,348,264 | 1,428,983 |
| Gold swaps | 20,191,036 | 889 | – |
| Commodity forwards | 26,158,964 | 1,592,842 | 1,445,583 |
| Gold deferred contracts | 80,157 | – | – |
| Standard bond forward | 40,000 | – | – |
| Total | 1,979,690,861 | 3,526,185 | 3,803,744 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
21. DERIVATIVE FINANCIAL INSTRUMENTS (Continued)
As at 31 December 2024 (Audited)
| Notional amounts RMB'000 | Fair Value Assets RMB'000 | Liabilities RMB'000 | |
|---|---|---|---|
| Non-hedging instruments | |||
| Interest rate derivatives | |||
| Interest rate swaps | 1,285,074,700 | 123,774 | 109,530 |
| Treasury bond futures | 50,406,459 | – | 4,383 |
| Collar options | 3,070,211 | 773 | 57,873 |
| Equity derivatives | |||
| Stock index futures | 11,411,133 | – | – |
| Equity linked derivatives | 5,622,847 | 410,504 | 25,773 |
| Stock index options | 3,756,767 | 23,084 | 109,391 |
| Equity total return swap | 5,262,757 | 72,157 | 239,300 |
| Credit derivatives | |||
| Credit default swaps | 1,033,000 | 12,472 | 382 |
| Other derivative instruments | |||
| Non-equity total return swap | 6,142,612 | 28,082 | 37,559 |
| Foreign exchange options | 9,602,268 | – | 62,268 |
| Foreign exchange swaps | 52,222,313 | 18,375 | 3,421 |
| Foreign exchange forward | 2,876,689 | 273,937 | 153,016 |
| Commodity futures | 11,949,734 | – | – |
| Commodity options | 26,422,322 | 719,682 | 252,241 |
| Gold swaps | 5,436,650 | 2,689 | – |
| Commodity forwards | 15,614,518 | 279,602 | 37,445 |
| Gold deferred contracts | 14,196 | – | – |
| Standard bond forward | 260,000 | – | – |
| Total | 1,496,179,176 | 1,965,131 | 1,092,582 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
22. ADVANCES TO CUSTOMERS
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Loans to margin clients | 27,779,466 | 28,060,402 |
| Less: impairment allowance | (13,823) | (12,877) |
| Total | 27,765,643 | 28,047,525 |
The movements of the impairment allowance are set out below:
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| At the beginning of the period/year | 12,877 | 55,900 |
| Charge for the period/year, net | 1,028 | 732 |
| Write off | - | (44,171) |
| Exchange differences | (82) | 416 |
| At the end of the period/year | 13,823 | 12,877 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
22. ADVANCES TO CUSTOMERS (Continued)
As at 30 June 2025 (Unaudited)
| 12-month ECL RMB'000 | Lifetime ECL (not credit-impaired) RMB'000 | Lifetime ECL (credit-impaired) RMB'000 | Total RMB'000 | |
|---|---|---|---|---|
| Impairment allowance | 2,581 | 962 | 10,280 | 13,823 |
As at 31 December 2024 (Audited)
| 12-month ECL RMB'000 | Lifetime ECL (not credit-impaired) RMB'000 | Lifetime ECL (credit-impaired) RMB'000 | Total RMB'000 | |
|---|---|---|---|---|
| Impairment allowance | 2,599 | 95 | 10,183 | 12,877 |
The credit facility limits for margin clients are determined by the discounted market value of the collateral securities accepted by the Group.
The loans to margin clients which are secured by the underlying cash collateral (Note 37) and pledged securities are interest bearing. The Group maintains a list of approved securities for margin lending at a specified loan-to-collateral ratio. Any excess in the lending ratio will trigger a margin call when the customers have to make up the difference.
Loan to margin clients were secured by the customers' securities and cash collateral, which were pledged to the Group as collateral. The undiscounted market values of pledged securities amounted to approximately RMB90,224 million and RMB87,211 million as at 30 June 2025 and 31 December 2024, respectively.
The directors of the Company are of the opinion that the aging analysis does not give additional value in view of the nature of the securities margin financing business. As a result, no aging analysis is disclosed.
The amount of advances to customers pledged due to the repurchase agreements was RMB2,965 million and RMB2,961 million as at 30 June 2025 and 31 December 2024, respectively.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
23. ACCOUNT RECEIVABLES
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Account receivables from/related to: | | |
| – Clearing house | 360,664 | 478,763 |
| – Brokers | 972,345 | 119,404 |
| – Asset management fee and trading seats commission | 325,081 | 295,631 |
| – Advisory and investment banking commission | 173,692 | 86,978 |
| Subtotal | 1,831,782 | 980,776 |
| Less: impairment allowance | (7,493) | (7,412) |
| Total | 1,824,289 | 973,364 |
Aging analysis of account receivables from the revenue recognition dates is as follows:
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Within 1 year | 1,808,375 | 959,172 |
| Between 1 and 2 years | 3,818 | 4,937 |
| Between 2 and 3 years | 9,329 | 6,490 |
| Over 3 years | 2,767 | 2,765 |
| Total | 1,824,289 | 973,364 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated
Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
23. ACCOUNT RECEIVABLES (Continued)
The movements of the impairment allowance are set out below:
| | As at
30 June
2023
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| At the beginning of the period/year | 7,412 | 4,139 |
| Charge for the period/year, net | 90 | 3,219 |
| Write off for the period/year | – | – |
| Exchange differences | (9) | 54 |
| At the end of the period/year | 7,493 | 7,412 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
24. REVERSE REPURCHASE AGREEMENTS
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Analysed by collateral type: | | |
| – Stocks | 3,007,090 | 3,128,897 |
| – Bonds | 2,470,991 | 3,350,182 |
| Others | 2,709 | 2,470 |
| Subtotal | 5,480,790 | 6,481,549 |
| Less: impairment allowance | (2,465,721) | (2,497,446) |
| | 3,015,069 | 3,984,103 |
| Analysed by market: | | |
| – Stock exchanges | 3,588,647 | 3,829,101 |
| – Inter-bank market | 1,889,434 | 2,649,978 |
| Others | 2,709 | 2,470 |
| Less: impairment allowance | (2,465,721) | (2,497,446) |
| Total | 3,015,069 | 3,984,103 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
24. REVERSE REPURCHASE AGREEMENTS (Continued)
The movements of the impairment allowance are set out below:
| As at 30 June 2025 RMB'000 (Unaudited) | As at 31 December 2024 RMB'000 (Audited) | |
|---|---|---|
| At the beginning of the period/year | 2,497,446 | 4,889,101 |
| Charge for the period/year, net | 67,216 | 387,807 |
| Transfer out for the period/year | (98,941) | (2,714,462) |
| Write off for the period/year | – | (65,000) |
| At the end of the period/year | 2,465,721 | 2,497,446 |
As at 30 June 2025 (unaudited)
| 12-month ECL RMB'000 | Lifetime ECL (not credit-impaired) RMB'000 | Lifetime ECL (credit-impaired) RMB'000 | Total RMB'000 | |
|---|---|---|---|---|
| Impairment allowance | – | – | 2,465,721 | 2,465,721 |
As at 31 December 2024 (audited)
| 12-month ECL RMB'000 | Lifetime ECL (not credit-impaired) RMB'000 | Lifetime ECL (credit-impaired) RMB'000 | Total RMB'000 | |
|---|---|---|---|---|
| Impairment allowance | – | – | 2,497,446 | 2,497,446 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
25. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Analysed by type: | | |
| – Debt securities (Note a) | 60,288,448 | 38,990,482 |
| – Equity securities | 7,764,703 | 7,142,556 |
| – Mutual funds | 26,434,926 | 22,280,883 |
| – Other investments (Note b) | 21,849,939 | 21,775,410 |
| Total | 116,338,016 | 90,189,331 |
| Analysed as: | | |
| – Listed | 30,604,262 | 24,059,150 |
| – Unlisted | 85,733,754 | 66,130,181 |
| Total | 116,338,016 | 90,189,331 |
Note a: Debt securities include convertible bonds with contractual terms giving rise to cash flows that are not solely payments of principal and interest on the principal outstanding. Accordingly, they are measured at FVTPL.
Note b: Other investments mainly represent investments in collective asset management schemes issued and managed by the Group, perpetual instruments, wealth management products issued by banks and targeted asset management schemes (or trust investments) managed by non-bank financial institutions.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Fenminbi, unless otherwise stated)
26. DEBT INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
| | As at
30 June
2023
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Analysed by type: | | |
| – Government bonds | 21,321,727 | 27,245,279 |
| – Bonds issued by policy banks | 714,948 | 5,225,684 |
| – Bonds issued by commercial banks and other financial institutions | 6,329,665 | 6,415,593 |
| – Other debt securities (Note) | 66,063,280 | 71,633,355 |
| Total | 94,429,620 | 110,519,911 |
| Analysed as: | | |
| – Listed | 42,787,204 | 57,438,259 |
| – Unlisted | 51,642,416 | 53,081,652 |
| Total | 94,429,620 | 110,519,911 |
Note: Other debt securities mainly comprise bonds and notes issued by corporates.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
26. DEBT INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (Continued)
The movements of the impairment allowance are set out below:
| As at 30 June 2025 RMB'000 (Unaudited) | As at 31 December 2024 RMB'000 (Audited) | |
|---|---|---|
| At the beginning of the period/year | 243,305 | 174,122 |
| Charge for the period/year, net | 3,527 | 69,509 |
| Write off for the period/year | – | (375) |
| Exchange difference | (121) | 49 |
| At the end of the period/year | 246,711 | 243,305 |
As at 30 June 2025 (unaudited)
| 12-month ECL RMB'000 | Lifetime ECL (not credit-impaired) RMB'000 | Lifetime ECL (credit-impaired) RMB'000 | Total RMB'000 | |
|---|---|---|---|---|
| Impairment allowance | 29,795 | – | 216,916 | 246,711 |
As at 31 December 2024 (audited)
| 12-month ECL RMB'000 | Lifetime ECL (not credit-impaired) RMB'000 | Lifetime ECL (credit-impaired) RMB'000 | Total RMB'000 | |
|---|---|---|---|---|
| Impairment allowance | 78,701 | – | 164,604 | 243,305 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Fenminbi, unless otherwise stated)
27. EQUITY INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
| | As at
30 June
2023
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Analysed by type: | | |
| – Equity securities (Note a) | 12,253,884 | 10,847,983 |
| – Perpetual instruments (Note b) | 11,643,271 | 7,669,118 |
| – Others | 2,731,937 | 1,117,499 |
| Total | 26,629,092 | 19,634,600 |
| Analysed as: | | |
| – Listed (Note c) | 16,748,830 | 13,037,514 |
| – Unlisted (Note d) | 9,880,262 | 6,597,086 |
| Total | 26,629,092 | 19,634,600 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
27. EQUITY INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (Continued)
Note a: The above equity investments include those ordinary shares of the entities listed on the Shanghai Stock Exchange, the Shenzhen Stock Exchange, the Hong Kong Stock Exchange and those equity securities traded on National Equities Exchange and Quotations (the "NEEQ"). These investments are not held for trading, instead, they are held for long-term strategic purposes. The Group has elected to designate these investments in equity instruments as at FVOCI as they believe that recognising short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Group's strategy of holding these investments for long-term purposes and realising their performance potential in the long run.
Besides, some of the above equity investments represent the Group's equity interest in private entities established in the PRC. The directors of the Company have elected to designate these investments in equity instruments as at FVOCI for the strategy of holding these investments for long-term purposes.
In the current year, the Group disposed of certain investments in equity securities traded on the equity investments listed on stock exchanges as these investments no longer meet the investment objective of the Group.
Note b: Those perpetual instruments are equity instruments which are not held for trading. Instead, they are held for long-term strategic purposes. The Group has elected to designate these perpetual instruments as at FVOCI as it believes that recognising short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Group's strategy of holding these investments for long-term purposes and realising their dividend income in the long run.
Note c: Securities traded on stock exchanges are included in the "Listed" category.
Note d: The unlisted perpetual instruments were traded on inter-bank market.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Fenminbi, unless otherwise stated)
28. DEBT INSTRUMENTS MEASURED AT AMORTISED COST
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Analysed by type: | | |
| – Government bonds | 957,543 | 957,620 |
| – Bonds issued by commercial banks and other financial institutions | 435,815 | 440,548 |
| – Other debt securities (Note a) | 182,470 | 188,808 |
| Less: impairment allowance | (333) | (71) |
| Total | 1,575,495 | 1,586,905 |
| Analysed as: | | |
| – Listed | 1,139,680 | 1,146,357 |
| – Unlisted (Note b) | 435,815 | 440,548 |
| Total | 1,575,495 | 1,586,905 |
Note a: Other debt securities mainly comprise bonds and notes issued by corporates.
Note b: The unlisted debt securities were traded on inter-bank market.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
28. DEBT INSTRUMENTS MEASURED AT AMORTISED COST (Continued)
The movements of the impairment allowance are set out below:
| As at 30 June 2025 RMB’000 (Unaudited) | As at 31 December 2024 RMB’000 (Audited) | |
|---|---|---|
| At the beginning of the period/year | 71 | 62 |
| Charge of the period/year, net | 262 | 9 |
| At the end of the period/year | 333 | 71 |
As at 30 June 2025 (unaudited)
| 12-month ECL RMB’000 | Lifetime ECL (not credit-impaired) RMB’000 | Lifetime ECL (credit-impaired) RMB’000 | Total RMB’000 | |
|---|---|---|---|---|
| Impairment allowance | 333 | - | - | 333 |
As at 31 December 2024 (audited)
| 12-month ECL RMB’000 | Lifetime ECL (not credit-impaired) RMB’000 | Lifetime ECL (credit-impaired) RMB’000 | Total RMB’000 | |
|---|---|---|---|---|
| Impairment allowance | 71 | - | - | 71 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
29. INVESTMENTS IN ASSOCIATES
| | As at
30 June
2025
RMB’000
(Unaudited) | As at
31 December
2024
RMB’000
(Audited) |
| --- | --- | --- |
| Cost of investments in associates | 2,189,006 | 2,337,290 |
| Share of post-acquisition profits and other comprehensive income,
net of dividends received | 4,279,723 | 4,199,279 |
| Less: impairment allowance (Note a) | (408,717) | (408,446) |
| Total | 6,060,012 | 6,128,123 |
Note a: The impairment allowance of investments in associates as at 30 June 2025 and 31 December 2024 related to 2 associates invested by the Group.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
29. INVESTMENTS IN ASSOCIATES (Continued)
At the end of each reporting period, the Group had the following significant associate accounted for using the equity method:
| Name of associate | Place and date of establishment | Equity interest held by the Group | ||
|---|---|---|---|---|
| As at 30 June 2025 (Unaudited) | As at 31 December 2024 (Audited) | Principal activities | ||
| 匯添富基金管理股份有限公司 | ||||
| China Universal Asset Management | ||||
| Company Limited ("China Universal") | PRC | |||
| 3 February 2005 | 35.41% | 35.41% | Fund management |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
29. INVESTMENTS IN ASSOCIATES (Continued)
The summarised consolidated interim financial information of China Universal, which is an individually significant associate to the Group that is accounted for using equity method, prepared in accordance with IFRSs, is set out below:
China Universal
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Total assets | 14,682,170 | 14,352,665 |
| Total liabilities | 3,859,429 | 3,575,013 |
| Net assets | 10,822,741 | 10,777,652 |
| | Six months ended June 30 | |
| --- | --- | --- |
| | 2025
RMB'000
(Unaudited) | 2024
RMB'000
(Unaudited) |
| Total revenue | 2,340,847 | 2,222,323 |
| Profit for the period | 479,877 | 689,748 |
| Other comprehensive income | (5,889) | 3,413 |
| Total comprehensive income | 473,988 | 693,161 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
29. INVESTMENTS IN ASSOCIATES (Continued)
China Universal (Continued)
Reconciliation of the above consolidated interim financial information to the carrying amount of the interest in above associate recognised in the financial statements is as follows:
| | As at
30 June
2025
RMB’000
(Unaudited) | As at
31 December
2024
RMB’000
(Audited) |
| --- | --- | --- |
| Equity attributable to equity holders of the associate | 10,822,741 | 10,777,652 |
| Proportion of equity interests held by the Group | 35.41% | 35.41% |
| Carrying amount | 3,832,336 | 3,816,237 |
Aggregate information of other associates that are not individually material:
| Six months ended June 30 | ||
|---|---|---|
| 2025 | ||
| RMB’000 | ||
| (Unaudited) | 2024 | |
| RMB’000 | ||
| (Unaudited) | ||
| The Group’s share of profits/(losses) | 171,637 | (19,482) |
| The Group’s share of other comprehensive income | (9,980) | 360 |
| The Group’s share of total comprehensive income | 161,657 | (19,122) |
| As at | ||
| 30 June | ||
| 2025 | ||
| RMB’000 | ||
| (Unaudited) | As at | |
| 31 December | ||
| 2024 | ||
| RMB’000 | ||
| (Audited) | ||
| Aggregate carrying amount of the Group’s interests in these associates | 2,227,676 | 2,311,887 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements For the six months ended 30 June 2025 (Expressed in thousands of Renminbi, unless otherwise stated)
30. INTERESTS IN UNCONSOLIDATED STRUCTURED ENTITIES
30.1 Structured entities set up and managed by the Group
The Group served as the investment manager of structured entities (including funds, asset management schemes and limited partnerships), therefore had power over them during the periods. Except for the structured entities the Group has consolidated as disclosed in Note 31, based on the assessment, these structured entities are not controlled by the Group. The Group therefore did not consolidate these structured entities.
The total net assets of unconsolidated funds, asset management schemes and limited partnerships managed by the Group amounted to RMB270,590 million and RMB247,085 million as at 30 June 2025 and 31 December 2024, respectively. The Group classified the investments in unconsolidated funds, asset management schemes and limited partnership managed by the Group as financial assets at FVTPL and investments in associates as at 30 June 2025 and 31 December 2024. As at 30 June 2025 and 31 December 2024, the carrying amounts of the Group's interests in unconsolidated funds, asset management schemes and limited partnerships were RMB2,725 million and RMB3,000 million, respectively, which approximates the maximum risk exposure to the Group. The fund management fee income from the unconsolidated funds, asset management schemes and limited partnerships managed by the Group for the six months ended 30 June 2025 and 2024, were RMB645 million and RMB744 million, respectively.
The table below shows the carrying amount of unconsolidated funds, asset management schemes and limited partnership in which the Group acted as investment manager and held interests and its maximum exposure to loss in relation to those interests as at 30 June 2025 and 31 December 2024.
As at 30 June 2025 (unaudited)
| Carrying amount RMB'000 | Maximum exposure RMB'000 | |
|---|---|---|
| Financial assets at fair value through profit or loss | 2,211,668 | 2,211,668 |
| Investments in associates | 513,188 | 513,188 |
| Total | 2,724,856 | 2,724,856 |
Interim Report 2025 DFZQ
200 Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
30. INTERESTS IN UNCONSOLIDATED STRUCTURED ENTITIES (Continued)
30.1 Structured entities set up and managed by the Group (Continued)
As at 31 December 2024 (audited)
| Carrying amount RMB'000 | Maximum exposure RMB'000 | |
|---|---|---|
| Financial assets at fair value through profit or loss | 2,392,114 | 2,392,114 |
| Investments in associates | 607,897 | 607,897 |
| Total | 3,000,011 | 3,000,011 |
30.2 Structured entities set up and managed by third party institutions in which the Group holds an interest
The Group also holds interest in structured entities such as funds, asset management schemes, trust schemes, wealth management products that are issued by banks or other financial institutions and limited partnership. These structured entities are not consolidated by the Group. The nature and purpose of these structured entities are to generate fee income from managing assets on behalf of investors. These vehicles are financed through the issue of units to investors.
The table below shows the carrying amount of unconsolidated funds, asset management schemes, trust schemes, wealth management products and limited partnership in which the third party acted as investment manager and the Group held interests and its maximum exposure to loss in relation to those interests as at 30 June 2025 and 31 December 2024.
As at 30 June 2025 (unaudited)
| Carrying amount RMB'000 | Maximum exposure RMB'000 | |
|---|---|---|
| Financial assets at fair value through profit or loss | 43,238,711 | 43,238,711 |
| Investments in associates | 142,584 | 142,584 |
| Total | 43,381,295 | 43,381,295 |
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
30. INTERESTS IN UNCONSOLIDATED STRUCTURED ENTITIES (Continued)
30.2 Structured entities set up and managed by third party institutions in which the Group holds an interest (Continued)
As at 31 December 2024 (audited)
| Carrying amount RMB’000 | Maximum exposure RMB’000 | |
|---|---|---|
| Financial assets at fair value through profit or loss | 37,295,103 | 37,295,103 |
| Investments in associates | 139,920 | 139,920 |
| Total | 37,435,023 | 37,435,023 |
31. INTERESTS IN CONSOLIDATED STRUCTURED ENTITIES
The Group has consolidated certain structured entities including asset management schemes, funds and limited partnerships. For the structured entities where the Group involves as manager and also as investor, the Group assesses whether the combination of investments it held together with its remuneration creates exposure to variability of returns from the activities of the structured entities that is of such significance that it indicates that the Group is a principal.
Interests in all consolidated asset management schemes, funds and limited partnerships held by the Group amounted to fair value of RMB20,735 million and RMB11,241 million as at 30 June 2025 and 31 December 2024, respectively.
Interests held by other interest holders are included in financial liabilities designated at FVTPL in the condensed consolidated statement of financial position.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
32. PROPERTY AND EQUIPMENT
| Land and buildings RMB 000 | Electronic and communication equipment RMB 000 | Motor vehicles RMB 000 | Office equipment RMB 000 | Leasehold improvements RMB 000 | Construction in progress RMB 000 | Total RMB 000 | |
|---|---|---|---|---|---|---|---|
| Unaudited COST | |||||||
| As at 1 January 2025 | 1,884,009 | 1,216,548 | 35,818 | 157,319 | 737,254 | 772,202 | 4,803,150 |
| Additions | - | 26,668 | 193 | 2,972 | 542 | 58,419 | 88,794 |
| Disposals | - | (25,818) | (877) | (7,510) | - | - | (34,205) |
| Transfer during the period | 37,974 | 36,366 | - | 392 | 33,204 | (73,025) | 34,911 |
| Exchange difference | - | 210 | - | 246 | - | - | 456 |
| As at 30 June 2025 | 1,921,983 | 1,253,974 | 35,134 | 153,419 | 771,000 | 757,596 | 4,893,106 |
| ACCUMULATED DEPRECIATION | |||||||
| As at 1 January 2025 | 447,189 | 955,934 | 31,605 | 119,575 | 646,651 | - | 2,200,954 |
| Charge for the period | 30,743 | 65,731 | 832 | 7,619 | 29,720 | - | 134,645 |
| Eliminated on disposals | - | (21,229) | (850) | (5,723) | - | - | (27,802) |
| Transfer during the period | 12,813 | - | - | - | - | - | 12,813 |
| Exchange difference | - | 157 | - | 50 | (2) | - | 205 |
| As at 30 June 2025 | 490,745 | 1,000,593 | 31,587 | 121,521 | 676,369 | - | 2,320,815 |
| CARRYING VALUES | |||||||
| As at 30 June 2025 | 1,431,238 | 253,381 | 3,547 | 31,898 | 94,631 | 757,596 | 2,572,291 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Fenminbi, unless otherwise stated)
32. PROPERTY AND EQUIPMENT (Continued)
| Land and buildings RMB'000 | Electronic and communication equipment RMB'000 | Motor vehicles RMB'000 | Office equipment RMB'000 | Leasehold improvements RMB'000 | Construction in progress RMB'000 | Total RMB'000 | |
|---|---|---|---|---|---|---|---|
| COST | |||||||
| As at 1 January 2024 | 1,885,041 | 1,177,282 | 39,832 | 158,691 | 701,085 | 765,409 | 4,727,340 |
| Additions | 3,575 | 56,540 | 550 | 6,105 | 9,927 | 78,672 | 155,369 |
| Disposals | - | (59,093) | (4,564) | (9,247) | - | - | (72,904) |
| Transfer during the year | (4,607) | 41,526 | - | 1,731 | 26,242 | (71,925) | (7,033) |
| Exchange difference | - | 293 | - | 39 | - | 46 | 378 |
| As at 31 December 2024 | 1,884,009 | 1,216,548 | 35,818 | 157,319 | 737,254 | 772,202 | 4,803,150 |
| ACCUMULATED DEPRECIATION | |||||||
| As at 1 January 2024 | 386,315 | 872,014 | 33,927 | 113,694 | 582,021 | - | 1,987,971 |
| Charge for the year | 64,066 | 140,923 | 2,106 | 14,429 | 64,721 | - | 286,245 |
| Eliminated on disposals | (3,192) | (57,240) | (4,428) | (8,565) | - | - | (73,425) |
| Transfer during the year | - | - | - | - | - | - | - |
| Exchange difference | - | 237 | - | 17 | (91) | - | 163 |
| As at 31 December 2024 | 447,189 | 955,934 | 31,605 | 119,575 | 646,651 | - | 2,200,954 |
| CARRYING VALUES | |||||||
| As at 31 December 2024 | 1,436,820 | 260,614 | 4,213 | 37,744 | 90,603 | 772,202 | 2,602,196 |
The carrying amount of the Group's property and equipment included leasehold interest in land. As the consideration cannot be allocated reliably between non-lease building element and undivided interest in the underlying leasehold land, therefore, the entire property is classified as property and equipment.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
33. DEFERRED TAXATION
The following is the analysis of the deferred tax balances for financial reporting purposes:
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Deferred tax assets | 676,590 | 1,490,513 |
| Deferred tax liabilities | (44,241) | (218) |
| Total | 632,349 | 1,490,295 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Fennimbi, unless otherwise stated)
33. DEFERRED TAXATION (Continued)
The following are the major deferred tax assets and liabilities recognised and movements during the current period and prior year:
| Financial instruments at FVTPL and derivatives RMB'000 | Accrued staff cost RMB'000 | Financial instruments at FVOCI RMB'000 | Allowance for impairment losses RMB'000 | Other RMB'000 | Total RMB'000 | |
|---|---|---|---|---|---|---|
| As at 1 January 2025 | (387,167) | 532,517 | (657,505) | 1,577,992 | 424,458 | 1,490,295 |
| (Charge)/credit to profit or loss | (185,461) | 6,809 | 1,113 | 57,701 | (410,024) | (529,862) |
| Charge to other comprehensive income | - | - | (327,427) | - | - | (327,427) |
| Transfer out upon disposal of equity instruments at FVOCI | - | - | (657) | - | - | (657) |
| As at 30 June 2025 | (572,628) | 539,326 | (984,476) | 1,635,693 | 14,434 | 632,349 |
| At 1 January 2024 | (617,301) | 334,223 | (81,314) | 1,925,007 | 483,024 | 2,043,639 |
| Credit/(charge) to profit or loss | 225,566 | 148,803 | 16,852 | (347,015) | (58,566) | (14,360) |
| Credit/(charge) to other comprehensive income | 3,150 | - | (607,590) | - | - | (604,440) |
| Transfer out upon disposal of equity instruments at FVOCI | 1,418 | - | 14,547 | - | - | 15,965 |
| Other | - | 49,491 | - | - | - | 49,491 |
| As at 31 December 2024 | (387,167) | 532,517 | (657,505) | 1,577,992 | 424,458 | 1,490,295 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
34. OTHER ASSETS
| | As at
30 June
2025
RMB’000
(Unaudited) | As at
31 December
2024
RMB’000
(Audited) |
| --- | --- | --- |
| Other receivables | 4,397,769 | 4,158,020 |
| Inventories | 1,598,535 | 1,564,301 |
| Prepayments | 270,063 | 242,005 |
| Others | 947,973 | 552,668 |
| Less: impairment allowance | (3,327,989) | (3,234,881) |
| Total | 3,886,351 | 3,282,113 |
The movements of the impairment allowance are set out below:
| | As at
30 June
2025
RMB’000
(Unaudited) | As at
31 December
2024
RMB’000
(Audited) |
| --- | --- | --- |
| At the beginning of the period/year | 3,234,881 | 1,950,440 |
| (Reversal of)/charge for the period/year, net | (75,888) | 52 |
| Transfer in | 98,941 | 2,714,462 |
| Recovery/(write off) for the period/year | 70,057 | (1,430,919) |
| Exchange differences | (2) | 846 |
| At the end of the period/year | 3,327,989 | 3,234,881 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
34. OTHER ASSETS (Continued)
As at 30 June 2025 (unaudited)
| 12-month ECL RMB'000 | Lifetime ECL (not credit-impaired) RMB'000 | Lifetime ECL (credit-impaired) RMB'000 | Total RMB'000 | |
|---|---|---|---|---|
| Impairment allowance | 2,722 | – | 3,325,267 | 3,327,989 |
As at 31 December 2024 (audited)
| 12-month ECL RMB'000 | Lifetime ECL (not credit-impaired) RMB'000 | Lifetime ECL (credit-impaired) RMB'000 | Total RMB'000 | |
|---|---|---|---|---|
| As at 31 December 2024 | 8,483 | – | 3,226,398 | 3,234,881 |
35. PLACEMENTS FROM BANKS AND FINANCIAL INSTITUTIONS
| As at 30 June 2025 RMB'000 (Unaudited) | As at 31 December 2024 RMB'000 (Audited) | |
|---|---|---|
| Placements from banks (Note a) | 23,550,054 | 25,130,563 |
| Placements from China Securities Finance Corporation Limited (Note b) | 5,424,784 | 5,224,352 |
| Placements from Shanghai Gold Exchange (Note c) | 352,425 | 8,839,710 |
| Total | 29,327,263 | 39,194,625 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
35. PLACEMENTS FROM BANKS AND FINANCIAL INSTITUTIONS (Continued)
Note a: As at 30 June 2025, the effective interest rates bearing on the outstanding amount of placements from banks varied from 1.20% to 5.11% (31 December 2024: 1.00% to 5.05%) per annum. The amount of placements from banks were repayable within eight months (31 December 2024: one year) from the end of the reporting period.
Note b: As at 30 June 2025, the effective interest rate of placements from China Securities Finance Corporation Limited varied from 1.68% to 2.18% (31 December 2024: 2.10% to 2.61%) per annum. The amount of placements from China Securities Finance Corporation Limited will be repayable within six months (31 December 2024: within one year) from the end of the reporting period.
Note c: As at 30 June 2025, the effective interest rates of placements from Shanghai Gold Exchange is 2% (31 December 2024: 1.80% to 2.57%) per annum. The amount of placements from Shanghai Gold Exchange were repayable within one month (31 December 2024: within one year) from the end of the reporting period.
36. SHORT-TERM DEBT INSTRUMENTS
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Short-term commercial paper and corporate bonds (Note a) | 4,030,806 | 3,008,107 |
| Income certificates (Note b) | 100,089 | 2,670,798 |
| Total | 4,130,895 | 5,678,905 |
| Analysed by market: | | |
| Stock exchange | 4,030,806 | 3,008,107 |
| Over the counter | 100,089 | 2,670,798 |
| Total | 4,130,895 | 5,678,905 |
Note a: As at 30 June 2025, the yield of the outstanding short-term commercial paper and corporate bond ranged from 1.71% to 1.76% (31 December 2024: 1.99%) per annum.
Note b: As at 30 June 2025, the yields of all the short-term outstanding income certificates issued by the Group ranged from 2.10% to 2.25% (31 December 2024: 2.00% to 2.80%) per annum.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated
Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
37. ACCOUNT PAYABLES TO BROKERAGE CLIENTS
The majority of the account payables balances are repayable on demand except for certain balances representing margin deposits and cash collateral received from clients for their trading activities under the normal course of business. 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 analysis does not give additional value in view of the nature of these businesses.
Account payables to brokerage clients mainly include money held on behalf of clients in the banks and clearing houses by the Group and are interest-bearing at the prevailing market interest rate.
As at 30 June 2025 and 31 December 2024, included in the Group's account payable to brokerage clients were approximately RMB3,917 million and RMB4,464 million, respectively, of margin deposits and cash collateral received from clients for margin financing and securities lending arrangement.
38. REPURCHASE AGREEMENTS
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Analysed by collateral type | | |
| – Bonds | 81,293,869 | 80,198,270 |
| – Funds | 9,807,985 | 1,344,780 |
| – Advances to customers | 2,901,502 | 2,901,947 |
| – Perpetual instruments | 6,146,963 | 1,471,303 |
| Total | 100,150,319 | 85,916,300 |
| Analysed by market | | |
| – Stock exchanges | 46,690,585 | 53,115,946 |
| – Inter-bank market | 45,732,742 | 26,293,066 |
| – Over the counter | 7,726,992 | 6,507,288 |
| Total | 100,150,319 | 85,916,300 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
39. FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
| | As at
30 June
2025
RMB’000
(Unaudited) | As at
31 December
2024
RMB’000
(Audited) |
| --- | --- | --- |
| Debt securities | 5,986,763 | 7,002,742 |
| Designated at fair value through profit or loss | | |
| – Interests attributable to other holders of consolidated structured entities (Note a) | 258,328 | 288,206 |
| – Income certificates (Note b) | 10,670,317 | 6,978,165 |
| – Placements from banks | 2,973,152 | – |
| – Other (Note c) | 296,449 | 439,388 |
| Total | 20,185,009 | 14,708,501 |
Note a: Interests attributable to other holders of consolidated structured entities consist of third-party unitholders' interests in these consolidated structured entities which are recognised as a liability since the Group has the obligation to pay other investors or limited partners upon the maturity dates of the structured entities based on the net asset value and related terms of those consolidated structured entities.
Note b: The income certificates were hybrid contracts containing embedded derivative.
Note c: Other mainly includes structured notes issued by a subsidiary of the Company. The fair value of structured notes is linked to performance of a third-party perpetual bond and asset management schemes. The Group irrevocably designates these financial liabilities as measured at FVTPL to eliminate an accounting mismatch.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
40. BORROWINGS
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Unsecured short-term borrowings repayable within one year | 1,280,479 | 1,081,234 |
| Pledged short-term borrowings | 2,134 | – |
| Pledged long-term borrowings | 466,114 | 468,183 |
| Total | 1,748,727 | 1,549,417 |
As at 30 June 2025, the annual interest rates on the borrowings were in the range of 1.18% to 5.30% (31 December 2024: 3.00% to 5.56%).
41. DEBT SECURITIES ISSUED
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Corporate bonds | 36,525,709 | 34,812,335 |
| Subordinated bonds | 19,982,180 | 20,279,393 |
| Offshore bonds | 2,166,046 | 5,102,574 |
| Income certificates (Note a) | 516,697 | 540,016 |
| Total | 59,190,632 | 60,734,318 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
41. DEBT SECURITIES ISSUED (Continued)
| Issues | Currency | Issue amount (Original currency in million) | Issue amount (RMB in million) | Issue date | Maturity date | Coupon rate |
|---|---|---|---|---|---|---|
| 17-3 Corporate Bond | RMB | 4,000 | 4,000 | 03/08/2017 | 03/08/2027 | 4.98% |
| 22-1 Corporate Bond | RMB | 2,000 | 2,000 | 21/07/2022 | 21/07/2025 | 2.79% |
| 22-2 Corporate Bond | RMB | 1,500 | 1,500 | 21/07/2022 | 21/07/2027 | 3.18% |
| 22-3 Corporate Bond | RMB | 2,000 | 2,000 | 25/08/2022 | 25/08/2027 | 3.00% |
| 22-4 Corporate Bond | RMB | 3,500 | 3,500 | 14/12/2022 | 14/12/2025 | 3.40% |
| 23-2 Corporate Bond | RMB | 2,500 | 2,500 | 21/02/2023 | 21/02/2026 | 3.13% |
| 23-3 Corporate Bond | RMB | 1,600 | 1,600 | 21/03/2023 | 21/03/2028 | 3.32% |
| 23-4 Corporate Bond | RMB | 3,000 | 3,000 | 24/05/2023 | 24/05/2026 | 2.90% |
| 24-1 Corporate Bond | RMB | 1,800 | 1,800 | 25/01/2024 | 25/01/2027 | 2.73% |
| 24-2 Corporate Bond | RMB | 1,000 | 1,000 | 08/08/2024 | 08/08/2029 | 2.05% |
| 24-3 Corporate Bond | RMB | 2,000 | 2,000 | 08/08/2024 | 08/08/2034 | 2.30% |
| 24-4 Corporate Bond | RMB | 3,000 | 3,000 | 23/08/2024 | 23/08/2029 | 2.18% |
| 24-6 Corporate Bond | RMB | 3,000 | 3,000 | 17/10/2024 | 17/10/2029 | 2.28% |
| 24-8 Corporate Bond | RMB | 2,000 | 2,000 | 21/11/2024 | 21/11/2027 | 2.15% |
| 25-1 Corporate Bond | RMB | 2,000 | 2,000 | 13/01/2025 | 15/01/2026 | 1.64% |
| 25-1 Science and Technology Innovation Bond | RMB | 1,000 | 1,000 | 13/05/2025 | 13/05/2028 | 1.69% |
| Subtotal | 35,900 | |||||
| 21-3 Orient Subordinated Bond | RMB | 1,500 | 1,500 | 16/04/2021 | 16/04/2026 | 4.20% |
| 23-1 Orient Subordinated Bond | RMB | 3,000 | 3,000 | 24/04/2023 | 24/04/2026 | 3.30% |
| 23-2 Orient Subordinated Bond | RMB | 3,000 | 3,000 | 10/08/2023 | 10/08/2026 | 3.08% |
| 23-3 Orient Subordinated Bond | RMB | 2,800 | 2,800 | 30/10/2023 | 30/10/2026 | 3.30% |
| 23-4 Orient Subordinated Bond | RMB | 700 | 700 | 30/10/2023 | 30/10/2028 | 3.50% |
| 23-5 Orient Subordinated Bond | RMB | 2,000 | 2,000 | 23/11/2023 | 23/11/2026 | 3.18% |
| 24-1 Orient Subordinated Bond | RMB | 2,000 | 2,000 | 26/06/2024 | 26/06/2029 | 2.33% |
| 24-2 Orient Subordinated Bond | RMB | 2,500 | 2,500 | 08/07/2024 | 08/07/2029 | 2.31% |
| 25-2 Orient Subordinated Bond | RMB | 2,200 | 2,200 | 17/03/2025 | 17/03/2030 | 2.45% |
| Subtotal | 19,700 | |||||
| 22-2 Offshore USD Bond | USD | 300 | 2,089 | 26/10/2022 | 26/10/2025 | 5.125% |
| Subtotal | 2,089 | |||||
| Total | 57,689 |
Note a: The amount represents income certificates issued by the Company with maturities of more than one year. As at 30 June 2025, the outstanding income certificates carried yield from 2.15% to 2.58% (31 December 2024: 2.15% to 2.75%) per annum.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
42. OTHER LIABILITIES
| | As at
30 June
2025
RMB’000
(Unaudited) | As at
31 December
2024
RMB’000
(Audited) |
| --- | --- | --- |
| Other account payables | | |
| - Notes payable | 590,388 | 763,826 |
| - Settlement payables | 531,420 | 133,451 |
| - Payables for underwriting and products distribution fees | 187,515 | 200,151 |
| - Others | 281,338 | 74,826 |
| Other payables and accruals | | |
| - Derivatives deposit received from customers | 6,664,983 | 7,431,639 |
| - Futures risk reserve | 299,570 | 284,829 |
| - Acting underwriting securities | - | 385,000 |
| - Value-added taxes and other taxes | 179,548 | 117,752 |
| - Payables for securities and futures investor protection fund | 32,499 | 29,360 |
| - Others | 982,266 | 835,817 |
| Total | 9,749,527 | 10,256,651 |
43. SHARE CAPITAL
All shares issued by the Company are fully paid common shares. The par value is RMB1. The Company's number of shares issued and their nominal value are as follows:
| | Opening
RMB’000 | Addition
RMB’000 | Closing
RMB’000 |
| --- | --- | --- | --- |
| Registered, issued and fully paid ordinary shares
of RMB1 each: | | | |
| Period ended 30 June 2025 (Unaudited) | 8,496,645 | - | 8,496,645 |
| Year ended 31 December 2024 (Audited) | 8,496,645 | - | 8,496,645 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
43. SHARE CAPITAL (Continued)
On 30 October 2023, the Board of Directors of the Company approved “The Proposal to Repurchase the Company’s A Shares through Centralised Bidding Transaction” to maintain the Company’s market value and to protect the shareholders’ interests. These repurchased stocks could be sold through centralised bidding after 12 months or cancelled after 3 years.
On 6 May 2025, the Board of Directors of the Company approved “The Proposal to Repurchase the Company’s A Shares through Centralised Bidding Transaction” to maintain the Company’s market value and to protect the shareholders’ interests. These repurchased stocks could be sold through centralised bidding after 12 months or cancelled after 3 years. As at 30 June 2025, a total of 26,703,157 A shares have been repurchased through centralised bidding transaction at an aggregated consideration of RMB250 million. The details are as follows:
| Month of Repurchase | No. of Ordinary shares | Prices per share | Aggregate Consideration paid | |
|---|---|---|---|---|
| Highest | Lowest | |||
| November 2023 | 30,844,124 | RMB9.14 | RMB8.81 | RMB277 million |
| December 2023 | 2,642,300 | RMB8.75 | RMB8.18 | RMB22 million |
| January 2024 | 1,356,900 | RMB8.33 | RMB7.99 | RMB11 million |
| May 2025 – June 2025 | 26,703,157 | RMB9.76 | RMB9.19 | RMB250 million |
44. DIVIDENDS
| Six months ended 30 June | ||
|---|---|---|
| 2025 RMB’000 (Unaudited) | 2024 RMB’000 (Unaudited) | |
| Dividends recognised as distribution | 843,446 | 1,269,270 |
| Distribution to holders of other equity instrument | - | 237,500 |
| Total | 843,446 | 1,506,770 |
During the current interim period, a final dividend of RMB1.00 (tax inclusive) per 10 shares in respect of the year ended 31 December 2024 (period ended 30 June 2024: RMB1.50 (tax inclusive) per 10 shares in respect of the year ended 31 December 2023) was proposed by the Board of Directors and approved by the shareholders at the Annual General Meeting of the Company held on 23 May 2025. The aggregate amount of the final dividend declared and paid in the interim period amounted to RMB843,446 thousand (2024: RMB1,269,270 thousand).
During the current interim period, there is no dividend of the Group on perpetual subordinated bond (period ended 30 June 2024: RMB237,500 thousand).
An interim dividend of RMB1.20 (tax inclusive) per 10 shares in respect of the interim period for the six months ended 30 June 2025 (Period for the six months ended 30 June 2024: RMB0.75) was proposed by the Board of Directors.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements For the six months ended 30 June 2025 (Expressed in thousands of Renminbi, unless otherwise stated)
45. OTHER EQUITY INSTRUMENT
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Perpetual subordinated bond | 5,000,000 | 5,000,000 |
The Company issued a perpetual subordinated bond with a principal amount of RMB5 billion in August 2020, with the initial interest rate of 4.75% per annum.
The perpetual subordinated bond is unsecured. The interest rate for perpetual subordinated bond is reset every five years. The reset interest rate is determined as the sum of the current base rate and the initial spread plus 300 basis points. The current base rate is defined as the average yield of 5 years treasury from the bond yield curve published on China Bond website 5 working days before the reset date of interest rate. Upon the maturity of every repricing cycle, the Company has the option to extend the maturity of the bond for another repricing cycle or redeem the bond entirely.
The Company has the option to defer interest payment, except in the event of mandatory interest payments, so that at each interest payment date, the Company may choose to defer the interest payment to the next payment date for the current year as well as all interests and accreted interest already deferred, without being subject to any limitation with respect to the number of deferrals.
The mandatory interest payment events are limited to dividend distributions to ordinary shareholders of the Company and reductions of registered capital within 12 months before the interest payment date.
The perpetual subordinated bond issued by the Company is classified and presented as other equity instrument in the condensed consolidated statement of financial position.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
46. RESERVES
| | As at
30 June
2025
RMB’000
(Unaudited) | As at
31 December
2024
RMB’000
(Audited) |
| --- | --- | --- |
| Capital reserve | 39,528,225 | 39,534,520 |
| Surplus reserve | 5,094,810 | 5,032,049 |
| General reserve | 13,934,110 | 13,249,808 |
| Equity investment revaluation reserve | 1,810,120 | 1,309,773 |
| Debt investment revaluation reserve | 1,434,745 | 890,200 |
| Other investment revaluation reserve | 40,641 | 34,401 |
| Translation reserve | 27,762 | 8,745 |
| Total | 61,870,413 | 60,059,496 |
47. CAPITAL COMMITMENTS AND CONTINGENT LIABILITY
(1) Capital commitments
| | As at
30 June
2025
RMB’000
(Unaudited) | As at
31 December
2024
RMB’000
(Audited) |
| --- | --- | --- |
| Contracted but not provided for | 5,747,641 | 10,723 |
The aforementioned capital commitments mainly represent the securities underwriting commitments of the Group.
(2) Contingent liability
In November 2024, the Company received a legal notice issued by the Shanghai Financial Court in connection with a lawsuit filed by Guangdong Guangzhou Daily Media Co., Ltd. Due to the contract dispute with the Company, the plaintiff is claiming the return of financial advisory fees, compensation for losses, rights – protection costs, totalling RMB328 million, along with related litigation expenses. As of 30 June 2025, the case has not yet come to trial. The management of the Company is of the view that this legal case will not have a material impact on the Group's financial position or operating results at this stage.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated
Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
48. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
(1) Relationship of related parties
Major shareholder of the Company
Following major shareholder holding more than 10% shares of the Company is considered as a related party of the Group:
| Percentage of shares held | ||
|---|---|---|
| As at 30 June 2025 % (Unaudited) | As at 31 December 2024 % (Audited) | |
| 申能(集團)有限公司 | ||
| Shenergy (Group) Company Limited | 26.63 | 26.63 |
Associates
The details of the associates of the Group are set out in Note 29.
Others
Other related parties include members of the Board of Directors, members of the Board of Supervisors and senior management, close family members of such individuals, and entities controlled or significantly influenced by these individuals.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated
Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
48. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (Continued)
(2) Related party transaction and balances
Other than as disclosed elsewhere in these condensed consolidated interim financial statements, the Group had the following material related party transactions and balances:
As at 30 June 2025 and 31 December 2024, the Group had the following material balances with the Company's major shareholder and entities under its control:
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Account payables to brokerage clients | 4,654 | 40,217 |
| Other payables | 2,073 | 794 |
| Other receivables | 908 | – |
For the six months ended 30 June 2025 and 2024, the Group had the following material transactions with the Company's major shareholder and entities under its control:
| Six months ended 30 June | ||
|---|---|---|
| 2025 | ||
| RMB'000 | ||
| (Unaudited) | 2024 | |
| RMB'000 | ||
| (Unaudited) | ||
| Other operating expenses | 14,740 | 10,459 |
| Commission and fee income | 1,586 | 4,742 |
| Other income | 1,581 | – |
| Interest expenses | 14 | 15 |
| Net investment gains | – | 1 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated
Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Fenminbi, unless otherwise stated)
48. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (Continued)
(2) Related party transaction and balances (Continued)
As at 30 June 2025 and 31 December 2024, the Group had the following material balances with its associates:
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Account payables to brokerage clients | 124,681 | 43,224 |
| Other receivables | 6,286 | 3,051 |
| Other account payables | - | 496 |
As at June 30, 2025 and December 31, 2024, the Group had the following material investment balances of securities issued by associates:
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Debt instruments at FVOCI | 91,893 | 90,347 |
| Financial assets at FVTPL | 71,732 | 70,634 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated
Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
48. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (Continued)
(2) Related party transaction and balances (Continued)
For the six months ended 30 June 2025 and 2024, the Group had the following material transactions with its associates:
| Six months ended 30 June | ||
|---|---|---|
| 2025 | ||
| RMB'000 | ||
| (Unaudited) | 2024 | |
| RMB'000 | ||
| (Unaudited) | ||
| Commission and fee income | 25,467 | 12,166 |
| Interest income | 805 | 1,040 |
| Interest expenses | 244 | 31 |
| Other operating expenses | 1 | – |
| Net investment gains | – | 1 |
As at 30 June 2025 and 31 December 2024, the Group had the following material balances with other related parties:
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Account payables to brokerage clients | 23,734 | 3 |
| Other account payables | 132 | 457 |
| Other receivables | 76 | 892 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Fenminbi, unless otherwise stated)
48. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (Continued)
(2) Related party transaction and balances (Continued)
As at June 30, 2025 and December 31, 2024, the Group had the following material investment balances of securities issued by other related parties:
| | As at
30 June
2025
RMB'000
(Unaudited) | As at
31 December
2024
RMB'000
(Audited) |
| --- | --- | --- |
| Financial assets at FVTPL | 524,725 | 682,928 |
| Equity investments at FVOCI | 10,685 | 10,576 |
| Debt instruments at FVOCI | - | 144,030 |
For the six months ended 30 June 2025 and 2024, the Group had the following material transactions with other related parties:
| Six months ended 30 June | ||
|---|---|---|
| 2025 | ||
| RMB'000 | ||
| (Unaudited) | 2024 | |
| RMB'000 | ||
| (Unaudited) | ||
| Interest income | 1,052 | 5,734 |
| Net investment gains | 504 | 9,653 |
| Other operating expenses | 154 | 371 |
| Commission and fee income | 116 | 748 |
| Interest expenses | 8 | 1 |
Interim Report 2025 DFZQ
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
48. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (Continued)
(3) Key management personnel
During the current interim period, the key management personnel of the Company received the pre-tax salary of RMB4.1175 million from the Company. The final remunerations of key management personnel who received remunerations from the Company during the reporting period are still in the process of being confirmed, and the remaining portion will be disclosed after confirmation.
49. FAIR VALUE OF FINANCIAL INSTRUMENTS
For financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
Level 1: Inputs are quoted prices (unadjusted) in active market for identical assets or liabilities that the entity can access at the measurement date;
Level 2: Inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3: Inputs are unobservable inputs for the asset or liability.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
49. FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis
The fair value of financial assets and financial liabilities not measured at fair value on a recurring basis is determined by the active market quotation or in accordance with discounted cash flow method.
The key 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 interest rates, foreign exchange rates and counterparty credit spreads.
The table below summarizes the carrying amounts and expected fair values of those financial assets and liabilities not presented on the Group’s condensed consolidated statement of financial position at their fair values.
| As at 30 June 2025 | As at 31 December 2024 | |||
|---|---|---|---|---|
| Carrying amount RMB’000 (Unaudited) | Fair value RMB’000 (Unaudited) | Carrying amount RMB’000 (Audited) | Fair value RMB’000 (Audited) | |
| Financial asset | ||||
| Debt instruments measured at amortised cost | 1,575,495 | 1,599,652 | 1,586,905 | 1,610,773 |
| Financial liability | ||||
| Debt securities issued | ||||
| - Corporate bonds | 36,525,709 | 37,250,087 | 34,812,335 | 35,716,429 |
| - Subordinated bonds | 19,982,180 | 20,348,076 | 20,279,393 | 20,676,902 |
| - Offshore bonds | 2,166,046 | 2,171,117 | 5,102,574 | 5,060,420 |
| - Income certificates | 516,697 | 516,375 | 540,016 | 539,762 |
| Total | 59,190,632 | 60,285,655 | 60,734,318 | 61,993,513 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
49. FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis (Continued)
As at 30 June 2025 (unaudited)
| | Level 1
RMB'000 | Level 2
RMB'000 | Level 3
RMB'000 | Total
RMB'000 |
| --- | --- | --- | --- | --- |
| Financial asset | | | | |
| Debt instruments measured at amortised cost | – | 1,599,652 | – | 1,599,652 |
| Financial liability | | | | |
| Debt securities issued | – | 60,285,655 | – | 60,285,655 |
As at 31 December 2024 (audited)
| | Level 1
RMB'000 | Level 2
RMB'000 | Level 3
RMB'000 | Total
RMB'000 |
| --- | --- | --- | --- | --- |
| Financial asset | | | | |
| Debt instruments measured at amortised cost | 1,159,317 | 451,456 | – | 1,610,773 |
| Financial liability | | | | |
| Debt securities issued | 56,393,331 | 5,600,182 | – | 61,993,513 |
The fair values of financial assets and financial liabilities included in the Level 2 category above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant input being the discount rate that reflects the credit risk of respective group entities or counterparties.
Except for the above, the directors of the Company consider that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the Group’s condensed consolidated statements of financial position approximate their fair values.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
49. FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
Fair value of financial assets and financial liabilities that are measured at fair value on a recurring basis
If there is a reliable market quote for a financial instrument, the fair value of the financial instrument is measured based on quoted market price. If a reliable quoted market price is not available, the fair value of the financial instrument is estimated using valuation techniques. For the fair value of financial instruments categorised within Level 2, the valuation techniques applied include discounted cash flow, recent transaction price and net asset value method. The significant observable inputs used in the valuation techniques for Level 2 financial instruments include future cash flows estimated based on applying the interest yield curves, net asset values determined with reference to observable (quoted) prices of underlying investment portfolio and adjustments of related expenses, contractual terms, forward interest rates and forward exchange rates.
For financial instruments categorised within Level 3, fair values are determined by using valuation techniques, including valuation methods such as discounted cash flow model, comparable company analysis and recent financing price method. Determinations to classify fair value measures within Level 3 are generally based on the significance of the unobservable inputs to the overall fair value measurement.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
49. FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
Fair value of financial assets and financial liabilities that are measured at fair value on a recurring basis (Continued)
As at 30 June 2025 (unaudited)
| | Level 1
RMB'000 | Level 2
RMB'000 | Level 3
RMB'000 | Total
RMB'000 |
| --- | --- | --- | --- | --- |
| Financial assets: | | | | |
| Debt instruments at FVOCI | | | | |
| – Debt securities | – | 94,385,226 | 44,394 | 94,429,620 |
| Equity instruments at FVOCI | | | | |
| – Equity securities | 12,144,894 | 930 | 108,060 | 12,253,884 |
| – Perpetual instruments | – | 11,643,271 | – | 11,643,271 |
| – Others | 2,726,983 | 4,954 | – | 2,731,937 |
| Financial assets at FVTPL | | | | |
| – Debt securities | 601,775 | 59,637,173 | 49,500 | 60,288,448 |
| – Equity securities | 4,437,842 | 32,401 | 3,294,460 | 7,764,703 |
| – Funds | 8,608,979 | 17,825,947 | – | 26,434,926 |
| – Other investments | – | 18,224,609 | 3,625,330 | 21,849,939 |
| Derivative financial assets | – | 2,276,540 | 1,249,645 | 3,526,185 |
| Total | 28,520,473 | 204,031,051 | 8,371,389 | 240,922,913 |
| Financial liabilities: | | | | |
| Financial liabilities at FVTPL | – | 9,299,083 | 10,885,926 | 20,185,009 |
| Derivative financial liabilities | – | 2,284,104 | 1,519,640 | 3,803,744 |
| Total | – | 11,583,187 | 12,405,566 | 23,988,753 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
49. FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
Fair value of financial assets and financial liabilities that are measured at fair value on a recurring basis (Continued)
As at 31 December 2024 (audited)
| | Level 1
RMB'000 | Level 2
RMB'000 | Level 3
RMB'000 | Total
RMB'000 |
| --- | --- | --- | --- | --- |
| Financial assets: | | | | |
| Debt instruments at FVOCI | | | | |
| – Debt securities | 52,622,444 | 57,839,597 | 57,870 | 110,519,911 |
| Equity instruments at FVOCI | | | | |
| – Equity securities | 10,652,043 | 22,313 | 173,627 | 10,847,983 |
| – Perpetual instruments | 1,247,059 | 6,422,059 | – | 7,669,118 |
| – Others | 1,113,270 | 4,229 | – | 1,117,499 |
| Financial assets at FVTPL | | | | |
| – Debt securities | 11,035,507 | 27,951,601 | 3,374 | 38,990,482 |
| – Equity securities | 3,360,035 | 125,471 | 3,657,050 | 7,142,556 |
| – Funds | 5,395,513 | 16,885,370 | – | 22,280,883 |
| – Other investments | 2,007,416 | 16,593,229 | 3,174,765 | 21,775,410 |
| Derivative financial assets | – | 933,807 | 1,031,324 | 1,965,131 |
| Total | 87,433,287 | 126,777,676 | 8,098,010 | 222,308,973 |
| Financial liabilities: | | | | |
| Financial liabilities at FVTPL | 73,422 | 7,443,633 | 7,191,446 | 14,708,501 |
| Derivative financial liabilities | – | 650,095 | 442,487 | 1,092,582 |
| Total | 73,422 | 8,093,728 | 7,633,933 | 15,801,083 |
In 2025, pursuant to the relevant provisions of the Securities Companies Financial Instruments Valuation Guidelines (2025 Revision) issued by the Securities Association of China, the valuation technique for fixed income investments held by the Group that are listed on securities exchanges or traded on transfer platforms (excluding convertible bonds) was changed from using closing prices to utilising valuation data provided by third-party valuation agencies. Consequently, the fair value hierarchy classification for the aforementioned fixed income investments has been transferred from Level 1 to Level 2.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated
Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
49. FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
Fair value of financial assets and financial liabilities that are measured at fair value on a recurring basis (Continued)
The following table presents the valuation techniques and inputs used for the major financial instruments in Level 3.
| Financial instruments | As at 30 June 2025 RMB'000 (Unaudited) | As at 31 December 2024 RMB'000 (Audited) | Valuation technique(s) and key input(s) | Significant unobservable input(s) | Relationship of unobservable input(s) to fair value |
|---|---|---|---|---|---|
| Equity securities/ Associates | 3,771,805 (asset) | 5,014,477 (asset) | Calculated based on pricing/yield such as price-to-earnings (P/E), price-to-book (P/B) and price-to-sales (P/S) ratio of comparable companies with an adjustment of discount for lack of marketability. | P/E multiples | |
| P/B multiples | |||||
| P/S multiples | |||||
| Discount for lack of marketability | The higher the multiples, the higher the fair value. | ||||
| The higher the discount, the lower the fair value. | |||||
| Equity securities | 85,415 (asset) | 81,641 (asset) | The fair value is determined with reference to the quoted market prices with an adjustment of discount for lack of marketability. This discount is determined by option pricing model. The key input is historical volatility of the share prices of the securities. | Discount for lack of marketability | The higher the discount, the lower the fair value. |
| Equity securities/ Associates | 614,560 (asset) | 72,943 (asset) | Recent transaction price with an adjustment of discount for lack of marketability. | Discount for lack of marketability | The higher the discount, the lower the fair value. |
| Debt securities | 44,394 (asset) | 57,870 (asset) | Future cash flows are discounted by the risk adjusted discount rate of the bonds. | Discount rate | The higher the discount rate, the lower the fair value. |
| Derivative financial instruments | 1,249,645 (asset) | ||||
| 1,519,640 (liability) | 1,031,324 (asset) | ||||
| 442,487 (liability) | The option pricing model is used which applies the option exercise price, the price and volatility of the underlying asset, the option exercise time, and the risk-free interest rate. | The volatility of the underlying asset for option | The higher the volatility, the greater the impact on the fair value. |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Fennimbi, unless otherwise stated)
49. FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
Fair value of financial assets and financial liabilities that are measured at fair value on a recurring basis (Continued)
| Financial instruments | As at 30 June 2025 RMB'000 (Unaudited) | As at 31 December 2024 RMB'000 (Audited) | Valuation technique(s) and key input(s) | Significant unobservable input(s) | Relationship of unobservable input(s) to fair value |
|---|---|---|---|---|---|
| Income certificates designated at FVTPL | 10,670,317 (liability) | 6,978,165 (liability) | The option pricing model is used which applies the option exercise price, the price and volatility of the underlying asset, the option exercise time, and the risk-free interest rate. | The volatility of the underlying asset for option | The higher the volatility, the greater the impact on the fair value. |
| Other investments | 2,605,569 (asset) | ||||
| 47,838 (liability) | 1,839,756 (asset) | ||||
| 51,215 (liability) | The fair value is determined with reference to the net asset value of the underlying investments with an adjustment of discount for the credit risk of various counterparties. | Discount rate | The higher the discount rate, the lower the fair value. | ||
| Interests attributable to other holders of consolidated structured entities | 167,771 (liability) | 162,065 (liability) | Shares of the net value of the structured entities, determined with reference to the net asset value of the structured entities, calculated based on pricing/yield of comparable companies with an adjustment of discount for lack of marketability of underlying investment portfolio and adjustments of related expenses. | P/E multiples | |
| Discount for lack of marketability | The higher the multiples, the higher the fair value. | ||||
| The higher the discount, the lower the fair value. |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
49. FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
Fair value of financial assets and financial liabilities that are measured at fair value on a recurring basis (Continued)
The following table represents the changes in Level 3 financial instruments for the relevant period.
As at 30 June 2025 (unaudited)
| Equity instruments at FVOCI RMB'000 | Debt instruments at FVOCI RMB'000 | Financial assets at FVTPL RMB'000 | Financial liabilities at FVTPL RMB'000 | |
|---|---|---|---|---|
| At the beginning of the period | 173,627 | 57,870 | 6,835,189 | (7,191,446) |
| Changes in fair value recognised in other comprehensive income | (75,862) | (4,407) | – | – |
| Changes in fair value recognised in profit or loss | – | – | 93,337 | 28,835 |
| Additions (Note a) | 39,465 | – | 1,043,645 | (10,356,248) |
| Transfer out of Level 3 (Note b) | (29,170) | – | – | – |
| Disposals | – | (9,069) | (1,002,881) | 6,632,933 |
| At the end of the period | 108,060 | 44,394 | 6,969,290 | (10,885,926) |
| Total (losses)/gains for assets/liabilities held at the end of the period | ||||
| – unrealised losses recognised in other comprehensive income | (45,516) | (8,522) | – | – |
| – unrealised (losses)/gains recognised in profit or loss | – | – | (229,439) | 272,090 |
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Fenminbi, unless otherwise stated)
49. FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
Fair value of financial assets and financial liabilities that are measured at fair value on a recurring basis (Continued)
As at 30 June 2024 (unaudited)
| Equity instruments at FVOCI RMB'000 | Debt instruments at FVOCI RMB'000 | Financial assets at FVTPL RMB'000 | Financial liabilities at FVTPL RMB'000 | |
|---|---|---|---|---|
| At the beginning of the period | 188,359 | – | 8,023,490 | (7,457,974) |
| Changes in fair value recognised in other comprehensive income | (55,152) | – | – | – |
| Changes in fair value recognised in profit or loss | – | – | (1,262,006) | (67,176) |
| Additions (Note a) | 51,588 | 92,443 | 784,052 | (5,565,349) |
| Transfer out of Level 3 (Note b) | – | – | (214,184) | – |
| Disposals | – | – | (225,035) | 5,713,080 |
| At the end of the period | 184,795 | 92,443 | 7,106,317 | (7,377,419) |
| Total (losses)/gains for assets/liabilities held at the end of the period | ||||
| – unrealised losses recognised in other comprehensive income | (16,576) | (6,942) | – | – |
| – unrealised gains/(losses) recognised in profit or loss | – | – | (402,162) | 93,586 |
Note a: These mainly included the issuance of new income certificates containing embedded derivatives, the equity securities traded on the NEEQ with decreased turnover rates and other investments with significant unobservable inputs applied in valuing these investments. The equity securities traded on the NEEQ with decreased turnover rates were transferred from Level 2 to Level 3 in the fair value hierarchy.
Note b: These mainly included equity securities traded on stock exchanges with lock-up periods.
They were transferred from Level 3 to Level 1 when the lock-up period lapsed and became unrestricted.
Interim Report 2025 DFZQ
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2025
(Expressed in thousands of Renminbi, unless otherwise stated)
50. SUBSEQUENT EVENT
(1) Capital increase of subsidiary
On 7 July 2025, the Company completed a capital increase of HKD1 billion to its wholly-owned subsidiary, Orient Finance Holdings (Hong Kong) Limited. The paid-in capital of Orient Finance Holdings (Hong Kong) Limited has been changed from HKD2.754 billion to HKD3.754 billion.
(2) Issuance of corporate bonds
On 22 July 2025, the Company completed the issuance of the third tranche of a corporate bond with total nominal value of RMB2 billion. The corporate bond bears interest at 1.61% per annum with a maturity of 180 days.
On 12 August 2025, the Company completed the issuance of the second tranche of a corporate bond with total nominal value of RMB2.5 billion. The corporate bond bears interest at 1.88% per annum with a maturity of 3 years.
On 21 August 2025, the Company completed the issuance of the first tranche of a perpetual subordinated bond with total nominal value of RMB3 billion. The perpetual subordinated bond bears interest at 2.35% that would be repriced every 5 years. The Company has the option to extend the maturity of the bond for another repricing cycle, or redeem the bond entirely.
(3) Proposed profit distribution
Pursuant to the Board resolution passed on 29 August 2025, it is proposed that cash dividends of RMB1.20 (tax inclusive) be distributed for every 10 shares based on the Company's share capital of 8,496,645 thousand shares as at 30 June 2025 deducting 61,546 thousand shares deposited in the Company's special securities account for repurchase as of 29 August 2025. This proposed distribution of cash dividends is subject to the approval of the Shareholders' general meetings.
Interim Report 2025 DFZQ
东方证券
—DFZQ—