Interim Results Announcement for the Six Months Ended June 30, 2017

243 Pages·2012·1.68 MB·English

Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing
Company Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or
completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole
or any part of the contents of this announcement.
(A joint stock company incorporated in the People’s Republic of China with limited liability under the
Chinese corporate name 華泰證券股份有限公司 and carrying on business in Hong Kong as HTSC)
(Stock Code: 6886)
Interim Results Announcement
for the Six Months Ended June 30, 2017
The Board is pleased to announce the unaudited interim results of the Company and its subsidiaries
for the six months ended June 30, 2017. This announcement, containing the full text of the interim
report for 2017 of the Company, complies with the relevant requirements of the Hong Kong Listing
Rules in relation to information to accompany preliminary announcement of interim results.
The publication of interim results announcement and interim report
This results announcement will be published on the websites of Hong Kong Stock Exchange
(www.hkexnews.hk) and the Company (www.htsc.com.cn), respectively.
The interim report of the Company for 2017 will be dispatched to H Share Shareholders and will
also be available at the websites of Hong Kong Stock Exchange and the Company in due course.
Definitions
Unless otherwise stated, capitalized terms used in this announcement shall have the same meanings
as those defined in the section headed “Definitions” in the interim report for 2017 of the Company
as set out in this announcement.
By order of the Board
Zhou Yi
Chairman
Jiangsu, PRC, August 11, 2017
As of the date of this announcement, the Board of Directors comprises Mr. ZHOU Yi as an executive Director; Ms. PU Baoying,
Mr. GAO Xu, Mr. CHEN Ning, Mr. XU Feng, Mr. XU Qing and Mr. ZHOU Yong as non-executive Directors; and Mr. CHEN
Chuanming, Mr. LIU Hongzhong, Mr. LEE Chi Ming, Mr. YANG Xiongsheng and Ms. LIU Yan as independent non-executive
Directors.
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IMPORTANT NOTICE
I. The Board of Directors, the Board of Supervisors, Directors, Supervisors and senior
management of the Company undertake that the information in this interim report is true,
accurate and complete and contains no false record, misleading statement or material
omission, and assume individual and joint legal liabilities to the truthfulness, accuracy and
completeness of the information in this report.
II. The 2017 interim report of the Company has been considered and approved at the eighth
meeting of the fourth session of the Board of the Company. The meeting required 12
Directors be present at the meeting, and 9 Directors attended the meeting finally. Ms.
Pu Baoying and Mr. Xu Qing, the Company’s non-executive Directors, and Mr. Chen
Chuanming, the Company’s independent non-executive Director were not present at
the meeting in person. Among which, Ms. Pu Baoying appointed Mr. Chen Ning (the
Company’s non-executive Director) in writing for voting on behalf of her, Mr. Xu Qing
appointed Mr. Zhou Yi (the Company’s executive Director and chairman of the Board)
in writing for voting on behalf of him, and Mr. Chen Chuanming appointed Mr. Yang
Xiongsheng (the Company’s independent non-executive Director) in writing for voting on
behalf of him. None of the Directors had objections towards the 2017 interim report of the
Company.
III. The unaudited interim financial report for 2017 of the Company has been prepared in
accordance with the International Financial Report Standards and reviewed by KPMG in
accordance with Hong Kong Standard on Review Engagements.
IV. Zhou Yi, officer in charge of the Company, Shu Ben’e, officer in charge of accounting
of the Company, and Fei Lei, officer in charge of the accounting office of the Company
(head of accounting department), hereby warrant and guarantee that the financial report
contained in the interim report is true, accurate and complete.
V. The profit distribution plan or the conversion plan of reserves to share capital for the
Reporting Period considered by the Board
The Board of the Company has not proposed any profit distribution plan or any conversion plan
of capital reserves to share capital during the review of the interim report for the first half of
2017.
VI. Risk Statement with respect to the forward-looking statements
Any forward-looking statements such as future plans and development strategies contained in
this interim report do not constitute any substantive commitments by the Company to investors.
Investors should pay attention to investment risks.
VII. There is no non-operating misappropriation of funds of the Company by any of the
controlling shareholders and their related parties.
VIII. The Company has not provided any guarantees in favor of others in violation of the
decision-making procedures.
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IX. The interim report of the Company is prepared in both Chinese and English. In the event
of any inconsistency, the Chinese version should prevail.
X. Warning on major risks
The general economic and political conditions such as macroeconomic and monetary
policies, legislation and regulations affecting the financial and securities industries, upward
and downward trends in the business and financial sectors, inflation, currency fluctuations,
availability of short-term and long-term market funding sources, cost of funding and the level
and volatility of interest rates may affect the Company’s business. On the other hand, like other
companies in the securities industry, the Company’s business is also affected by the inherent
risks associated with the securities markets, such as market volatility and fluctuations in the
trading volume. The Company can provide no assurance that the favorable political, economic
and market conditions will be sustained.
The risks the Company faces in its operation mainly include: policy risk that has adverse effect
on the operation of the securities companies caused by the change of the laws and regulations,
regulatory policies and trading rules relevant to the securities industry upon implementation
of national macro-control measures; compliance risk that imposes legal sanctions, regulatory
measures, asset loss or reputation loss on the Company due to violation of laws, rules or
standards by operational management or professional conduct; legal risk that causes losses
to the Company for lawsuits, compensation and penalties caused by failing to comply with
laws, regulations and requirements; market risk that results in losses of the Company’s assets
as a result of the fluctuations of market prices such as interest rate, exchange rate, share price
and commodity price; credit risk that results in the losses of the Company’s assets caused
by the defaults of commodity or bond issuers and counterparties (clients); liquidity risk of
failure to get timely capital injection under reasonable cost to repay due debts, fulfill other
payment obligations or satisfy the capital needs for normal business development; information
technology risk that causes losses due to various technical breakdowns or data disclosure in
the Company’s information system for internal or external problems, making the transactions
and business management not be able to carry out stably, efficiently and safely in the aspects
of service fulfillment, response speed, processing ability and data encryption; operational risk
that causes losses to the Company resulting from inadequate or problematic internal processes,
staff, systems or external events and reputational risk of negative assessment from relevant
media regarding the Company’s operation, management and other conducts or external events.
In addition, with the advancement of the Company’s internationalization strategy, the Company
expanded its businesses into regions such as the United States and Hong Kong, thus facing
more complicated market environment and regulatory requirements.
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CONTENTS
Chapter 1 Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Chapter 2 Company Profile and Key Financial Indicators. . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Chapter 3 Summary of the Company’s Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Chapter 4 Management Discussion and Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Chapter 5 Major Events and Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Chapter 6 Changes in Ordinary Shares and Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Chapter 7 Directors, Supervisors, Senior Management and Staff . . . . . . . . . . . . . . . . . . . . . 104
Chapter 8 Corporate Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Chapter 9 Interim Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Chapter 10 Index of Documents for Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Chapter 11 Information Disclosure of Securities Companies. . . . . . . . . . . . . . . . . . . . . . . . . . 113
Appendix Information Disclosures Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
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Chapter 1 Definitions
In this report, unless the context otherwise requires, the following terms and expressions have the
meanings set forth below:
DEFINITIONS OF CAPITALIZED TERMS AND EXPRESSIONS
“A Share(s)” Domestic share(s) in the share capital of the Company with
nominal value of RMB1.00 each, which are listed on the
Shanghai Stock Exchange and to be subscribed for and traded
in RMB
“A Shareholder(s)” holder(s) of A Shares
“APP” Application
“Articles of Association” the articles of association of the Company, as amended from
time to time
“AssetMark” AssetMark Financial Holdings, Inc.
“Board of Supervisors” the Board of Supervisors of the Company
“Board” or “Board of Directors” the Board of Directors of the Company
“CAGR” Compound annual growth rate
“China Southern Asset China Southern Asset Management Co., Ltd. ( 南方基金管理
Management” 有限公司 )
“China” or “PRC” the People’s Republic of China, excluding, for the purpose of
this interim report, Hong Kong, Macau Special Administrative
Region and Taiwan
“Communications Holding” Jiangsu Communications Holding Company Limited ( 江蘇交
通控股有限公司 )
“Companies Ordinance” the Companies Ordinance (Chapter 622 of the Laws of Hong
Kong) (as amended, supplemented or otherwise modified from
time to time)
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“Company Law” Company Law of the People’s Republic of China ( 中華人
民共和國公司法 ), as amended and adopted by the Standing
Committee of the Tenth National People’s Congress on
October 27, 2005 and effective on January 1, 2006, as
amended, supplemented or otherwise modified from time to
time, which was further amended on December 28, 2013 and
became effective on March 1, 2014
“CSI 300 Index” an index consisting of 300 index sample stocks which are most
representative selected by the Shanghai Stock Exchange and
Shenzhen Stock Exchange jointly with the scale and liquidity
as the basic standards
“CSRC” the China Securities Regulatory Commission ( 中國證券監督
管理委員會 )
“Director(s)” director(s) of the Company
“Group”, “Our Group”, “we” the Company and its subsidiaries, and their respective
or “us" predecessors
“FTSE China A50 Index” A tradable index created by FTSE China Index Limited
through selecting 50 Chinese A-share companies
“H Share(s)” Foreign share(s) in the share capital of the Company with
nominal value of RMB1.00 each, which are listed on the Hong
Kong Stock Exchange and to be subscribed for and traded in
HK dollars
“H Shareholder(s)” holder(s) of H Shares
“HK$”, “HKD” Hong Kong dollars, the lawful currency of Hong Kong
“Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited (香港聯合交易所
有限公司 )
“Hong Kong” the Hong Kong Special Administrative Region of the PRC
“Huatai Asset Management” Huatai Securities (Shanghai) Asset Management Co., Ltd. (華泰
證券 ( 上海 ) 資產管理有限公司 ), a wholly-owned subsidiary
of the Company
“Huatai Financial Holdings Huatai Financial Holdings (Hong Kong) Limited ( 華泰金融
(Hong Kong)” 控股 ( 香港 ) 有限公司 ), a wholly-owned subsidiary of the
Company
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“Huatai Futures” Huatai Futures Co., Ltd. ( 華泰期貨有限公司 ), a holding
subsidiary of the Company
“Huatai Innovative Investment” Huatai Innovative Investment Co., Ltd. (華泰創新投資有限公
司 ), a wholly-owned subsidiary of the Company
“Huatai United Securities” Huatai United Securities Co., Ltd. (華泰聯合證券有限責任公
司 ), a holding subsidiary of the Company
“Huatai Zijin Investment” Huatai Zijin Investment Co., Ltd. ( 華泰紫金投資有限責任公
司 ), a wholly-owned subsidiary of the Company
“Huatai-PineBridge” Huatai-PineBridge Fund Management Co., Ltd. ( 華泰柏瑞基
金管理有限公司 )
“iPad” a line of tablet computers designed and marketed by Apple Inc.
“IPO” the initial public offering
“Jiangsu Equity Exchange” Jiangsu Equity Exchange Co., Ltd. ( 江蘇股權交易中心有限
責任公司 ), a holding subsidiary of the Company
“Jiangsu Guoxin” Jiangsu Guoxin Investment Group Limited ( 江蘇省國信資產
管理集團有限公司 )
“Jiangsu SASAC” State-owned Assets Supervision and Administration
Commission of Jiangsu Provincial Government ( 江蘇省人民
政府國有資產監督管理委員會 )
“Jiangsu Securities Jiangsu Securities Regulatory Bureau of the CSRC ( 中國證監
Regulatory Bureau” 會江蘇監管局 )
“Listing Rules” or the Rules Governing the Listing of Securities on The Stock
“Hong Kong Listing Rules” Exchange of Hong Kong Limited
“Model Code” the Model Code for Securities Transactions by Directors of
Listed Issuers as set out in Appendix 10 to the Hong Kong
Listing Rules
“NEEQ” National Equities Exchange and Quotation ( 全國中小企業股
份轉讓系統 )
“NMAU” the number of monthly active users
“NSSF” the National Council for Social Security Fund of the PRC ( 全
國社會保障基金理事會 )
“OTC” over-the-counter
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“our Company”, a joint stock company incorporated in the PRC with limited
“Company”, liability under the corporate name 華泰證券股份有限公司
“Parent Company”, (Huatai Securities Co., Ltd.), converted from our predecessor
“HTSC” or “Huatai Securities” 華泰證券有限責任公司 (Huatai Securities Limited Liability
Company) on December 7, 2007, carrying on business in Hong
Kong as “HTSC”, and was registered as a registered non-Hong
Kong company under Part 16 of the Companies Ordinance
under the Chinese approved name of “ 華泰六八八六股份有
限公司 ” and English name of “Huatai Securities Co., Ltd.”;
the H Shares of which has been listed on the main board of the
Hong Kong Stock Exchange since June 1, 2015 (Stock Code:
6886); the A Shares of which has been listed on the Shanghai
Stock Exchange since February 26, 2010 (Stock Code:
601688). Unless the context otherwise requires, it includes its
predecessor
“PC” Personal Computer
“related party transaction(s)” has the meaning ascribed to the term “related party
transaction(s)” by the prevailing Shanghai Stock Exchange
Listing Rules, as amended from time to time
“Reporting Period” the period from January 1, 2017 to June 30, 2017
“RMB” or “Renminbi” Renminbi, the lawful currency of the PRC
“Securities and Futures the Securities and Futures Ordinance (Chapter 571 of the
Ordinance” or “SFO” Laws of Hong Kong), as amended, supplemented or otherwise
modified from time to time
“Securities Law” the Securities Law of the People’s Republic of China ( 中華
人民共和國證券法 ), as amended, supplemented or otherwise
modified from time to time
“Shanghai Stock Exchange the Rules Governing the Listing of Stocks on the Shanghai
Listing Rules” Stock Exchange ( 上海證券交易所股票上市規則 )
“Shanghai Stock Exchange” or the Shanghai Stock Exchange ( 上海證券交易所 )
“SSE”
“Shenzhen Stock Exchange” the Shenzhen Stock Exchange ( 深圳證券交易所 )
“SSE 50 Index” an index consisting of 50 index sample stocks with large
scale and good liquidity, which are most representative in the
securities market of Shanghai selected by the Shanghai Stock
Exchange
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“subsidiary(ies)” has the meaning ascribed to it in section 15 of the Companies
Ordinance
“Supervisor(s)” supervisor(s) of the Company
“TAMP” Turn-key Asset Management Platform, a technological
platform providing services such as investment products
and strategies and assets portfolio management, customer
relationship management and asset custody, as well as
corporate operation
“USD” or “US dollar” the lawful currency of the United States of America
“VAR” Value at risk
“Wind Information” Wind Information Co., Ltd., a service provider of financial
data, information and software in Mainland China
In the 2017 Interim Report, any discrepancies between the total shown and the sum of the amounts
listed are due to rounding.
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Chapter 2 Company Profile and Key Financial Indicators
I. COMPANY INFORMATION
Chinese name of the Company 華泰證券股份有限公司
Abbreviation of Chinese name of the Company 華泰證券
English name of the Company HUATAI SECURITIES CO., LTD.
Abbreviation of English name of the Company HTSC
Legal representative of the Company Zhou Yi
President of the Company Zhou Yi
Authorized representatives of the Company Zhou Yi, Zhang Hui
Registered Capital and Net Capital
Unit and Currency: RMB
As at As at
the end of the the end of the
Reporting Period previous year
Registered capital 7,162,768,800 7,162,768,800
Net capital 43,571,425,222.10 45,122,195,552.96
Qualifications of each of the business lines of the Company
During the Reporting Period, the Company acquired the agency qualification for the
subscription, application and redemption in respect of physical trading contracts of ETF for
gold at Shanghai Gold Exchange.
According to the business license issued by the Administration for Industry and Commerce of
Jiangsu Province, business scope of the Company includes: securities brokerage, proprietary
trading of securities, securities underwriting (limited to underwriting of government bonds, debt
financing instruments of non-financial enterprises and financial bonds (including policy-bank
bonds) only), securities investment consulting, intermediary introduction business for futures
company, margin financing and securities lending business, agency sale of financial products,
agency sale of securities investment funds, custodian for securities investment funds, agency
services for gold and other precious metal spot contracts and proprietary business for spot gold
contracts, stock options market making business, other business activities approved by the
CSRC.
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