I. The Board of Directors, the Supervisory Committee, Directors, Supervisors and senior management of the Company
undertake that the information in this annual report is true, accurate and complete and contains no false record,
misleading statement or material omission, and assume individual and joint legal liabilities to the information in this
report.
II. This report was considered and approved at the twenty-first meeting of the fifth session of the Board of the Company.
III. Director(s) absent from the meeting
IV. None of the Directors and Supervisors had objections towards this report.
V. The annual financial report prepared in accordance with the CASBE and the IFRS was audited by KPMG Huazhen LLP and
KPMG, respectively, which issued a standard unqualified audit report to the Company.
VI. Zhang Wei, the person in charge of the Company, Jiao Xiaoning, the person in charge of accounting, and Fei Lei,
the officer in charge of the accounting office of the Company (head of accounting department), hereby warrant and
guarantee that the financial report contained in the annual report is true, accurate and complete.
VII. The profit distribution proposal or the reserve capitalization proposal for the Reporting Period have been considered
and approved by the Board.
According to the 2021 annual financial statements of the Company, the net profit of the Parent Company for 2021 reached
RMB8,588,552,010.70. According to relevant provisions of the Company Law, Securities Law, Financial Rules for Financial
Enterprises
(
《金融企業財務規則》)
and the Articles of Association, the Company had appropriated 10% statutory surplus
reserve, 10% general risk reserve and 10% trading risk reserve of RMB2,576,565,603.21 in total, after which the profit available
for distribution for the year was RMB6,011,986,407.49. Taking into account the balance of undistributed profit in previous
years, the accumulated profit available for distribution to investors as at the end of 2021 was RMB20,003,532,244.85.
According to relevant requirements of the CSRC, gains arising from the fair value changes in distributable profit of securities
companies shall not be used for cash distribution to shareholders. As at the end of December 2021, the accumulated fair
value changes in distributable profit of the Parent Company were RMB1,911,124,925.20, after deduction of which as required,
the profit of the Parent Company available for distribution to investors in cash amounted to RMB18,092,407,319.65.
After comprehensive consideration of factors such as the interests of shareholders and the development of the Company,
the 2021 profit distribution proposal of the Company is as follows:
1. The Company will distribute cash dividend of RMB4.50 (tax inclusive) per 10 shares based on the Company’s existing total
share capital of 9,076,650,000 shares after deducting 45,278,495 shares deposited in the special account for securities
repurchase and 1,060,973 A Shares to be repurchased and cancelled (i.e. on the basis of 9,030,310,532 shares), with the total
cash dividend of RMB4,063,639,739.40 (tax inclusive), representing 30.45% of net profit attributable to the shareholders of the
Parent Company on a consolidated basis for 2021.
According to relevant provisions of the Guidelines of Self-regulation of Companies Listed on Shanghai Stock Exchange No. 7
– Repurchase of Shares
(《上海證券交易所上市公司自律監管指引第 7 號－回購股份》)
, the amount of share repurchases effected
by a company in a year shall be deemed as cash dividends and be counted in the calculation of the cash dividend
payout ratio for the year. Accordingly, based on the amount of share repurchases effected by the Company for 2021 of
RMB48,959,144.00 (excluding transaction costs), the total cash dividend amounted to RMB4,112,598,883.40, representing
30.81% of net profit attributable to the shareholders of the Parent Company on a consolidated basis for 2021.
If the total share capital of the Company changes as a result of repurchase and cancellation of shares granted in the
equity incentive during the period from the disclosure date of this proposal to the record date of the implementation of
IMPORTANT NOTICE
Position of absent Director Name of absent Director
Reasons for absence
Name of proxy
Director
Chen Yongbing Business engagement Ding Feng
Director Hu Xiao Business engagement Zhang Wei
Director Wang Tao Business engagement Zhang Wei
HUATAI SECURITIES
004
the dividend distribution, the Company intends to maintain the distribution ratio per share unchanged and adjust the total
distribution accordingly. The remaining profits available for distribution to investors will be carried forward to the next year.
2. Cash dividend is denominated and declared in RMB and paid to holders of A Shares (including the depositary of GDRs)
and the investors of Southbound Trading in RMB and to holders of H Shares (excluding the investors of Southbound Trading)
in HKD. The actual distribution amount in HKD shall be calculated at the rate of average basic exchange rate of RMB against
HKD issued by the PBOC five business days prior to the date of the 2021 Annual General Meeting of the Company.
VIII. Forward-looking statements including future plans and development strategies involved in this annual report do not
constitute the Company’s substantive commitments to investors. The investors are advised to pay attention to investment
risks.
IX. There is no non-operating misappropriation of funds of the Company by any controlling shareholders and their related
parties during the Reporting Period.
X. The Company has not provided any external guarantees in violation of the stipulated decision-making procedures
during the Reporting Period.
XI. During the Reporting Period, there exists no such circumstance that more than half of the Directors could not guarantee
the authenticity, accuracy and integrity of the annual report disclosed by the Company.
XII. The report is prepared by the Company in both Chinese and English. In the event of any inconsistency, the Chinese
version shall prevail.
XIII. Warning on Major Risks
General economic and political conditions such as macroeconomy and monetary policies, laws and regulations
influencing financial and securities industries, rising and falling trends in commercial and financial industries, inflation,
exchange rate fluctuations, availability of long and short-term market capital sources, funds raising costs and interest rate
levels and fluctuations may have an impact on the Company’s business. Besides, like other companies in the securities
industry, inherent risks in the securities market, such as market volatility and trading volume, may also affect the Company’s
business. The Company cannot guarantee the sustainability of favorable politics, economy and market conditions.
Main risks in business operation faced by the Company include: policy risks from national macro-control measures,
changes in laws, regulations, relevant regulatory policies and transaction rules in securities industry, which will adversely
influence the business of securities companies; compliance risks from business management or professional activities
violating laws, regulations or codes, which cause the Company being punished by laws, being taken regulatory measures,
suffering from property loss or reputation loss; legal risks from failure to abide by provisions and requirements in laws and
regulations, which make the Company face litigations, compensation, and fines and suffer from loss; market risks from
fluctuations in market prices (interest rates, exchange rates, stock prices, commodity prices, etc.), which make the Company
suffer from loss in assets; credit risks from default of products or debt issuers or counterparties (customers), which make the
Company suffer from loss; liquidity risks from inability to obtain sufficient funds at reasonable cost to pay matured debts,
fulfil other payment obligations and satisfy the capital needs for normal business; information and technology risks such as
various technical failure or data leakage of the Company’s information system from internal and external reasons, which
consequently cause loss as the information system is impossible to guarantee the stability, high-efficiency and safety of
transactions and business management in business realization, response speed, processing capacity, data encryption and
so on; operational risks from incomplete or problematic internal procedures, personnel or systems or external incidents,
which cause loss; reputation risks from business operation, management and other behaviors or external incidents which
lead to negative judgement on the Company from relevant media; 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. Besides, with the advancement of the
Company’s internationalization strategy, the Company’s business will enter the United States, the United Kingdom, Hong
Kong and other countries and regions, and the Company will face more complex market environment and regulatory
requirements.
005
Financial Report and
Documents for Inspection
Corporate Governance
About Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
DEFINITIONS
In this report, unless the context otherwise requires, the following terms and expressions have the meanings set forth below:
DEFINITIONS OF CAPITALIZED TERMS AND EXPRESSIONS
A Share(s)
domestic share(s) in the share capital of the Company with nominal value of RMB1.00
each, which are listed on the Shanghai Stock Exchange and traded in RMB
AoP Assets on Platform
APP application
Articles of Association
the articles of association of the Company, as amended, supplemented or otherwise
modified from time to time
AssetMark AssetMark Financial Holdings, Inc.
Bank of Jiangsu Bank of Jiangsu Co., Ltd. (
江蘇銀行股份有限公司
)
Board or Board of Directors the board of Directors of the Company
Beijing Stock Exchange the Beijing Stock Exchange
( 北京證券交易所 )
CASBE the China Accounting Standards for Business Enterprises (
中國企業會計準則
)
China or the PRC the People’s Republic of China
China Southern Asset Management China Southern Asset Management Co., Ltd. (
南方基金管理股份有限 公司
)
Communications Holding
Jiangsu Communications Holding Co., Ltd. (
江蘇交通控股有限公司
)
Company Law
Company Law of the People’s Republic of China (
《中華人民共和國公司法》
), as amended
from time to time
CSI 300 Index
an index consisting of 300 index sample stocks which are most representative selected
by the Shanghai Stock Exchange and the 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
FICC fixed income, currency and commodity
Fintech financial technology
Future IB Business
a business activity in which securities firms, as commissioned by futures companies,
introduce clients to participate in futures transactions of futures companies and
provide other related services
GDR global depository receipt
Govtor Capital Govtor Capital Group Co., Ltd. (
江蘇高科技投資集團有限公司
)
Group, Our Group, we or us the Company and its subsidiaries, and their respective predecessors
Guoxin Group
Jiangsu Guoxin Investment Group Limited
( 江蘇省國信集團有限公司
, formerly known as
Jiangsu Guoxin Asset Management Group Limited
( 江蘇省國信資產管理集團有限公司 ))
H Share(s)
foreign share(s) in the share capital of the Company with nominal value of RMB1.00
each, which are listed on the Hong Kong Stock Exchange and traded in HK dollars
HKEX Hong Kong Exchanges and Clearing Limited (
香港交易及結算所有限公司
)
HK$, HKD or HK dollars the lawful currency of Hong Kong
Hong Kong the Hong Kong Special Administrative Region of the PRC
Hong Kong Stock Exchange The Stock Exchange of Hong Kong Limited
( 香港聯合交易所有限公司 )
HTSC, Huatai Securities, our Company,
Company or Parent Company
a joint stock company incorporated in the PRC with limited liability under the corporate
name
华泰证券股份有限公司
(Huatai Securities Co., Ltd.), converted from our predecessor
华泰证券有限责任公司
(Huatai Securities Limited Liability Company) on December 7, 2007,
carrying on business in Hong Kong as “HTSC”, and was registered as a registered non-
Hong Kong company under Part 16 of the Companies Ordinance under the Chinese
approved name of “
華泰六八八六股份有限公司
” and English name of “Huatai Securities
Co., Ltd.”; the H Shares of which have been listed on the main board of Hong Kong Stock
Exchange since June 1, 2015 (Stock Code: 6886); the A Shares of which have been listed
on the SSE since February 26, 2010 (Stock Code: 601688); and the global depository
receipts of which have been listed on the London Stock Exchange plc since June 2019
(Symbol: HTSC), unless the context otherwise requires, including its predecessor
Huatai Asset Management
Huatai Securities (Shanghai) Asset Management Co., Ltd. (
華泰證券
(
上海
)
資產管理有限
公司
), a wholly-owned subsidiary of the Company
Huatai Financial Holdings (Hong Kong)
Huatai Financial Holdings (Hong Kong) Limited (
華泰金融控股
(
香港
)
有限公司
), a wholly-
owned subsidiary of Huatai International
Huatai Futures
Huatai Futures Co., Ltd. (
華泰期貨有限公司
), a holding subsidiary of the Company
HUATAI SECURITIES
006
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 International
Huatai International Financial Holdings Company Limited (
華泰國際金融控股有限公司
), 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
)
Huatai Purple Gold Investment
Huatai Purple Gold Investment Co., Ltd. (
華泰紫金投資有限責任公司
), a wholly-owned
subsidiary of the Company
Huatai Securities (USA)
Huatai Securities (USA), Inc. (
華泰證券（美國）有限公司
), a wholly-owned subsidiary of
Huatai International
Huatai United Securities
Huatai United Securities Co., Ltd. (
華泰聯合證券有限責任公司
), a holding subsidiary of the
Company
IFRS the International Financial Reporting Standards
IPO the initial public offering
IT information technology
Jiangsu Equity Exchange
Jiangsu Equity Exchange Co., Ltd. (
江蘇股權交易中心有限責任公司
), a holding subsidiary
of the Company
Jiangsu SASAC
State-owned Assets Supervision and Administration Commission of Jiangsu Provincial
Government (
江蘇省政府國有資產監督管理委員會
)
Jiangsu Securities Regulatory Bureau Jiangsu Securities Regulatory Bureau of the CSRC (
中國證監會江蘇監管局
)
Listing Rules or Hong Kong Listing Rules
the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong
Limited (as amended, supplemented or otherwise modified from time to time)
London Stock Exchange plc or LSE the London Stock Exchange plc (
倫敦證券交易所
)
Model Code
the Model Code for Securities Transactions by Directors of Listed Issuers as set out in
Appendix 10 to the Hong Kong Listing Rules
MSCI Morgan Stanley Capital International Index
NEEQ the National Equities Exchange and Quotations for medium and small-sized enterprises
NMAU the number of monthly active users
OTC over-the-counter
PBOC the People’s Bank of China
QDII qualified domestic institutional investor
QFII qualified foreign institutional investor
Reporting Period the year ended December 31, 2021
Securities and Futures Ordinance or SFO
the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as
amended, supplemented or otherwise modified from time to time
SFC the Securities and Futures Commission of Hong Kong (
香港證券及期貨事務監察委員會
)
Shanghai Brilliance
Shanghai Brilliance Credit Rating & Investors Services Co., Ltd.(
上海新世紀資信評估投資服
務有限公司
)
Shanghai Clearing House the Interbank Market Clearing House Co., Ltd. (
銀行間市場清算所股份有限公司
)
Shanghai Stock Exchange or SSE the Shanghai Stock Exchange (
上海證券交易所
)
Shenzhen Stock Exchange the Shenzhen Stock Exchange (
深圳證券交易所
)
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
SSF the National Council for Social Security Fund of the PRC (
全國社會保障基金理事會
)
STAR Market science and technology innovation board of the SSE
Supervisor(s) supervisor(s) of the Company
Supervisory Committee the supervisory committee of the Company
TAMP
Turn-key Asset Management Platform, a technological platform providing services
such as investment products and strategies, assets portfolio management, customer
relationship management and asset custody, as well as corporate operation
USD, US$ or US dollar the lawful currency of the United States of America
VAR value at risk
Wind Information
Wind Information Co., Ltd. (
萬得資訊技術股份有限公司
), a service provider of financial
data, information and software in Mainland China
% per cent.
In the 2021 Annual Report, any discrepancies between the total shown and the sum of the amounts listed are due to rounding; and
any discrepancies in the change percentages of an item are due to the difference of currency unit of the item.
007
Financial Report and
Documents for Inspection
Corporate Governance
About Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
Dear Shareholders:
Times are like fire and test gold. The COVID-19 epidemic still
raged globally in the past year and the external environment
became increasingly complicated and severe. Meanwhile,
the new round of technology and industrial revolution never
stopped advancing forward and the capital market under
the registration-based IPO system sped up in transformation
towards a mature market. In the era with challenges and
uncertainties, all staff of Huatai maintained our resilience
and forged ahead with courage. We devoted to current
development and explored opportunities. We also braved in
transcending the moment to embrace the new future at a new
height.
During our responses to the wave of digitalization, we always
remain true to our original aspirations to create value for
customers and achieve common growth with customers. We
vigorously developed “ZhangLe Fortune Path” (
漲樂財富通
)
when the mobile Internet was in full swing nine years ago and
led the historical reform of the retail business in the industry.
We firstly initiated the full digital transformation three years ago
and unswervingly transformed business and management
models. We promote technology empowerment from partial
breakthroughs to overall coverage and speed up in unleashing
the energy of the platform-based operation. As more and
more customers consider Huatai as the prioritized institute
for continuous services, the ideal on empowering customers
through platforms is gradually coming true. Our overall
business performance set a historical high in the previous
year and our comprehensive domestic and overseas strength
soundly ranked in the forefront of the industry. As of the end of
2021, total assets of the Group amounted to RMB806,651 million
and total equity attributable to shareholders of the Company
amounted to RMB148,423 million. In 2021, the Group recorded
revenue and other income of RMB51,926 million and a profit
for the year attributable to shareholders of the Company of
RMB13,346 million.
The figures in financial reports only represent the past
achievements. In the times with uncertainties, the biggest
certainty we can seize is to maintain the focus on common
growth with customers, keep the vitality on synergizing with the
market and continuously evolve in self-iterations. We deeply
believe that there are no shortcuts in building a world-class
investment bank and the pursuit for creating differentiated
value is an endless process. In the environment full of changes,
advantages will be replaced by trends. Today’s fences will
become barriers tomorrow if we “lie flat”. As a participant in
the securities industry, Huatai constantly reshapes itself under
the wave of digitalism. It directly faces the pain points in its
development and breaks through path reliance to explore
more new paths and new opportunities in the development of
the industry in the future. The technology-empowered “two-
pronged” development strategy of wealth management and
institutional services provides strong driving forces for us to
make breakthroughs in the industry. Standing at a higher
starting point, Huatai will more resolutely advance towards
self-iteration and lead the reform in the future again with an
open concept and the new model of platform-based and
ecological operation.
Achieving value creation by facilitating customers’
success
In the times with various uncertainties and fluctuations in
market sentiment, we profoundly sensed the strong demands
of customers for professional financial service capabilities.
Despites market changes, Huatai remained true to its original
aspirations and missions to create long-term value for
customers and achieve common growth with customers by
gathering platform resources and focusing on the origin of
serving customers to tide over difficulties with our customers.
Facing the huge and diversified individual customer
groups with 20 million people, we have been considering
how to make “personalized” professional financial
services possible. As a result, we have established the dual-
platform service ecosystem with “ZhangLe Fortune Path” (
漲
樂財富通
) and “AORTA” (
聊
TA) to empower customers on
one end and empower investment consultants on the other,
and build lifecycle services changing with time. The newly-
released “ZhangLe Fortune Path 8.0” (
漲樂財富通
8.0) achieved
breakthroughs and attempted to perceive and respond
to customer demands more acutely and agilely through
personalized posting of diversified contents and refined
operation, so that “warm” and “prompt” services can be
delivered directly. “AORTA” rapidly improved the “capabilities”
of investment consultants through series of utility tools and
matched appropriate and outstanding investment consultants
for more high-quality customers. With our unremitting efforts
in creating new value for customers, we have won long-term
trust from more high-quality customer groups.
The demands of institutional customer groups showed an
increasingly comprehensive, customized and cross-border
trend. Internally, we broke through barriers on organizational
and service capabilities and integrated resources in the whole
HUATAI SECURITIES
008
HUATAI SECURITIES
CEO'S LETTER
business chain covering investment banking, research, trading
and securities lending. Externally, we continued to establish the
“Xing Zhi” (
行知
) platform for institutional investors, the global
unified trading platform and the business platform for various
institutional services to provide customers with integrated
financial solutions and constantly expand and deepen the
ecosystem of financial institutions and corporate customers.
After over two years of iteration, the “Xing Zhi” platform has
established a new efficient and interactive bridge among
investors, listed companies and experts in industries and
formed a leading institutional service brand in the industry. As
the first securities lending and trading platform in the market,
the “Securities Lending Path” (
融券通
) was upgraded again
last year, which not only efficiently linked more upstream and
downstream securities borrowing and lending institutions
but also provided more customers with more efficient and
transparent services through the open and sharing platform
resources and information. The market share of our securities
lending business has increased by over 20% by the end of the
previous year. To meet customers’ comprehensive demands
for global asset allocation and hedging transactions, our
institutional business has gradually expanded from the
Mainland to Hong Kong and the US and mastered the changes
in customer demands in Southbound and Northbound Tradings
through leveraging on the cross-border and integrated
linkage. Our derivatives business and cross-border business
maintained the leading position in the industry. As an important
link for serving corporate customers, the investment banking
business deeply explored in key industries representing the
orientation of China’s economic development and continuously
served leading enterprises in industries to achieve common
growth with new leading enterprises in the future. It ranked the
top place in the industry in terms of the scale of the stocks and
bonds underwriting business.
Achieving breakthroughs in development boundaries
with data and platforms
The financial industry is a ship sailing on the ocean of data.
How to understand the law of big data and build the internal
logic of big data is crucial in determining the course of the
ship. Data coordination and reshaping and vitalizing data
with technology are pain points and difficulties in the digital
transformation of the industry. On the basis of promoting data
governance, Huatai advanced the enhancement of data
capabilities through platform-based and ecological models
and enabled us to better serve our customers and the market
with data as the engine.
We have comprehensively upgraded the data middle office
into the intelligent middle office, conducted the organic
integration of big data capability and artificial intelligence
technology and built the product matrix covering intelligent
recommendation, intelligent public opinions and intelligent
trading through gathering massive data on market
conditions, industries and enterprises, allowing personalized
recommendation services and investment consulting services
to fully cover individual clients and professional data services
and intelligent services to fully extend to institutional clients.
Meanwhile, the capability of the intelligent platform has been
continuously enhanced by businesses in the high-frequent
interactions. It has constantly accumulated business data,
improved the knowledge graph and become a guide for us to
accompany our customers in depth.
In the times of artificial intelligence, data accumulate on
platforms while platforms continuously expand and upgrade
their capabilities and achieve spiral growth through self-
iterations on the basis of data. Our credit analysis and
management platform has completed the full coverage
of intelligent grading and reports on 29 industries and
upgraded the credit study and quantitative rating, asset
pricing, quantitative trading strategies and other modules,
which comprehensively improved the credit management
capability of the Group. The intelligent research platform
firstly achieved the online production of the whole process
from research frameworks, valuation models to reports in
China, which will become the base for the Group’s investment
research capability in the future. Leveraging on the platform-
based operation, we will also conduct the organic integration
of various capabilities on research, pricing, trading and
product creation and accurately output them to individual and
institutional customer service systems.
Platforms full of vitality are characterized by capabilities
on breaking business barriers and connecting data islands
horizontally, achieving empowerment, reducing burdens and
promoting coordinated and synergistic development vertically
and improving the operation efficiency. “Openness” is the due
meaning in the development of platforms. No matter for our
customer platforms or the “Securities Lending Path”, the big
trading platform for the FICC business and other business
platforms, the credit analysis and management and other
capability middle offices and even our digital employees
and other guarantee platforms, we adhere to the concept
of openness and security to cooperate with more customers
and strategic partners in the operation of new scenarios, the
improvement of new technologies and the iteration of new
capabilities. Huatai wishes to build high-level ecosystems with
business and data interactions together with its customers and
strategic partners to drive data with businesses and empower
businesses with data.
Developing more extensive influence through sustainable
development
Huatai Securities, in its 30s and bearing the expectations of
various parties, has never profoundly felt that the sustainable
development is closely connected to the growth of each of
our organizations and individuals like this. Our sustainable
development depends on the fully unleashing of innovation
vitality by over 14,000 employees. Nearly 1/3 of Huatai’s
employees were born in the 1990s and a group of young
people have stood out after endeavors in the market.
Meanwhile, the extensive application of digital employees will
free more employees from simple and repeated work and
allow them to focus on innovative work for the better display
of their gifts. Under an open and inclusive cultural atmosphere,
each of Huatai employees with creativity, resilience and sense
of responsibility is “shining” in different industries.
The ESG (environmental, social and governance) has become
a new benchmark on fully improving the healthy development
of Huatai. We established the sustainable development
strategy on “finance + technology + green”, guided capital and
sci-tech input in charity and allowed such values to penetrate
into the routine work of each staff. We have developed a more
complete ESG governance system, incorporated ESG into the
risk control mechanism, aligned consensus across business
lines and practiced the principle of responsible investment to
support the development of green industries through direct
financing and equity investment. We sponsored a foundation
on charity with donations in the end of the previous year,
through which we wished to gather various capitals and
professional advantages and focus on rural revitalization,
green development and other key industries to contribute new
solutions to sustainable development. With our outstanding
performance in relevant industries, our MSCI ESG rating was
raised to level A in the previous year, the highest level among
domestic securities companies.
The global pattern has been speeding up in reshaping in
an unprecedented manner since this year. For Huatai, it is
extremely important to keep respectful with responsibilities
in mind, maintain the continuous “creativity” from 0 to 1 and
the continuous “motivation” from 1 to 10 and create value
for customers through platform empowerment. Facing the
upcoming wave of reform and the orientation of the surging
tide becoming clearer, we are more confident that each step
we made will become a new step for the industries.
CEO: Zhou Yi
March 30, 2022
009
Financial Report and
Documents for Inspection
Corporate Governance
About Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
I. COMPANY INFORMATION
Registered capital and net capital of the Company
According to the business license issued by Jiangsu Provincial Market
Regulation Administration, the 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 financial bonds) only), securities investment consulting,
intermediary introduction business for futures companies, 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
metals spot contracts and proprietary business for spot gold contracts,
stock options market making business, other business activities approved
by the CSRC. (Projects that need to be approved by law shall be carried
out upon approval by relevant authorities)
Please refer to “Appendix I: Main Business Qualifications” in this report for
the main business qualifications of the Company.
Qualifications of each of the business lines of the Company
Chinese name of the Company
Abbreviation of Chinese name of the
Company
English name of the Company
Abbreviation of English name of the
Company
华泰证券股份有限公司
華泰證券
HUATAI SECURITIES CO., LTD.
HTSC
Legal representative of the Company
Chief Executive Officer and chairman
of the Executive Committee of the
Company
Authorized representatives of the
Company
As at the end of the
Reporting Period
Registered
capital
Net capital
As at the end of the
previous year
9,076,650,000.00
9,076,650,000.00
82,314,070,326.70
67,909,921,047.21
Unit: Yuan Currency: RMB
Zhang Wei
Zhou Yi
Zhou Yi, Zhang Hui
HUATAI SECURITIES
010
Company Profile
HUATAI SECURITIES
II. CONTACT
Secretary of the Board
Name Zhang Hui
Address 11/F, Building 1, No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, the PRC
Tel. 025-83387272, 83387780, 83389157
Fax 025-83387784
Email zhanghui@htsc.com
Joint company secretary Joint company secretary
Name Zhang Hui Kwong Yin Ping Yvonne
Address
11/F, Building 1, No. 228 Middle Jiangdong Road,
Nanjing, Jiangsu Province, the PRC
40th Floor, Dah Sing Financial Centre, No. 248
Queen’s Road East, Wanchai, Hong Kong, the
PRC
III. BASIC INFORMATION
Registered address of the Company No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, the PRC
Historical changes in registered
address of the Company
In July 2015, the Company has completed the change in business
registration, and its registered address was changed from “No. 90
East Zhongshan Road, Nanjing, Jiangsu Province, the PRC” to “No. 228
Middle Jiangdong Road, Nanjing, Jiangsu Province, the PRC”
Office address of the Company No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, the PRC
Postal code of office address of the
Company
210019
Principal place of business in Hong
Kong
Room 4201, 42/F, The Center, 99 Queen’s Road Central, Hong Kong
the PRC
Company website http://www.htsc.com.cn
Email boardoffice@htsc.com
Main exchange 025-83389999
Customer service hotline 95597 or 4008895597
Company fax 025-83387784
Business License Unified Social
Credit Code
91320000704041011J
Brief of Index inclusion SSE 50 Index, CSI 300 Index, MSCI China Share Index
Index of changes during the
Reporting Period
No changes during the Reporting Period
011
Financial Report and
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Operating Analysis
and Strategies
ANNUAL REPORT 2021
IV. INFORMATION DISCLOSURE AND LOCATION FOR INSPECTION OF
DOCUMENTS
Names and websites of newspapers
for disclosure of annual report of the
Company
China Securities Journal ( https://www.cs.com.cn), Shanghai
Securities News ( https://www.cnstock.com), Securities Times
( http://www.stcn.com), Securities Daily ( http://www.zqrb.cn)
Websites of the stock exchanges for
disclosure of annual report of the
Company
Shanghai Stock Exchange (http://www.sse.com.cn), Hong
Kong Stock Exchange (http://www.hkexnews.hk), London Stock
Exchange (https://www.londonstockexchange.com)
Location for inspection of annual report of
the Company (A Share)
No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, the
PRC; Shanghai Stock Exchange
Location for inspection of annual report of
the Company (H Share)
No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, the
PRC; Room 4201, 42/F, The Center, 99 Queen’s Road Central,
Hong Kong, the PRC
Index of changes during the Reporting
Period
No changes during the Reporting Period
V. SHARES/DEPOSITORY RECEIPTS OF THE COMPANY
VI. OTHER INFORMATION OF THE COMPANY
Type of shares/
depository receipts Stock exchange for listing Stock name Stock code
A Share Shanghai Stock Exchange
華泰證券
601688
H Share Hong Kong Stock Exchange HTSC
6886
GDR London Stock Exchange Huatai Securities Co., Ltd.
HTSC
The Company did not change the stock name.
(I) Historical development of the Company, mainly including the reorganization and
capital increases in the previous years
The predecessor of the Company was Jiangsu Securities Company (
江蘇省證券公司
), which was established
in December 1990 as approved by the headquarters of the PBOC, obtained the business license on April 9,
1991, and officially opened for business on May 26, 1991. In 1994, the Economic Reform Commission of Jiangsu
Province approved the conversion of the Company to be a directional stock raising company. In June 1997,
the Company changed its name to “
江蘇證券有限責任公司
” (Jiangsu Securities Co., Ltd.). In March 1999, the
Company changed its name to “
华泰证券有限责任公司
” (Huatai Securities Limited Liability Company), and
approved by the CSRC, the Company was converted into “
华泰证券股份有限公司
” (Huatai Securities Co.,
Ltd.) in its entirety on November 29, 2007. On December 7, 2007, the Company completed the business
registration for such changes. In July 2009, the Company acquired Xintai Securities Co., Ltd. (
信泰證券有限
責任公司
). In February 2010, the Company was successfully listed on the Shanghai Stock Exchange. In June
2015, the Company was listed on the Main Board of the Hong Kong Stock Exchange. In June 2019, the GDR
issued by the Company was listed and traded on the Main Market of the London Stock Exchange.
HUATAI SECURITIES
012
Major capital increases of the Company:
When it was established on April 9, 1991, the registered capital of the Company was RMB10,000,000.
The registered capital of the Company increased to RMB202,000,000 in June 1994.
The registered capital of the Company increased to RMB404,000,000 in June 1997.
The registered capital of the Company increased to RMB828,000,000 in May 1998.
The registered capital of the Company increased to RMB850,320,000 in December 1999.
The registered capital of the Company increased to RMB2,200,000,000 in April 2001.
The registered capital of the Company increased to RMB4,500,000,000 in November 2007.
The registered capital of the Company increased to RMB4,815,438,725 on July 30, 2009.
In February 2010, the Company completed its initial public offering of 784,561,275 RMB-denominated ordinary
shares (A Shares) on the Shanghai Stock Exchange, after which the Company’s registered capital was
RMB5,600,000,000.
In June 2015, the Company completed its listing on the Main Board of the Hong Kong Stock Exchange and
commenced trading. After the exercise of the over-allotment option, the Company issued 1,562,768,800
H Shares in total, and the total share capital of the Company changed to 7,162,768,800 shares. Due to the
issuance and listing of H Shares, the relevant state-owned shareholders transferred 156,276,880 state-
owned shares (A Shares) of the Company held by them to SSF in the form of H Shares, on the basis of 10%
of the number of H Shares issued this time. The changes in share capital structure of the Company were as
follows: 5,443,723,120 A Shares, which accounted for 76% of the total number of shares; and 1,719,045,680 H
Shares, which accounted for 24% of the total number of shares.
In August 2018, the Company completed the non-public issuance of 1,088,731,200 RMB-denominated
ordinary shares (A Shares) by way of “Non-Public Issuance to Specific Investors”, after which the Company’s
registered capital was RMB8,251,500,000. The changes in share capital structure of the Company were as
follows: 6,532,454,320 A Shares, which accounted for 79% of the total number of shares; and 1,719,045,680 H
Shares, which accounted for 21% of the total number of shares.
In June 2019, the GDR issued by the Company was listed and traded on the Main Market of the London
Stock Exchange. After the exercise of the over-allotment option, the Company issued 82,515,000 GDR in
total, representing the underlying securities of 825,150,000 A Shares, after which the Company’s registered
capital was RMB9,076,650,000. The changes in share capital structure of the Company were as follows:
7,357,604,320 A Shares, which accounted for 81% of the total number of shares; and 1,719,045,680 H Shares,
which accounted for 19% of the total number of shares.
013
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About Us
Operating Analysis
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ANNUAL REPORT 2021
Officeofthe
SupervisoryCommittee
Supervisory
Committee
Wholly-owned
Subsidiaries
Holding
Subsidiaries
Participating
Subsidiaries
OfficeoftheBoard
ofDirectors
(II) Organization Structure of the Company
General Meeting
General Affairs
Department
Party-mass Work
Development
Inspection
Department
ComplianceandLegal
Department
RiskManagement
Department
HumanResources
Department
Huatai Securities (Shanghai) Asset
Management Co., Ltd.
Huatai International Financial Holdings
Company Limited
Huatai Purple Gold Investment Co., Ltd.
Huatai Innovation Investment Co., Ltd.
Huatai United Securities Co., Ltd.
Huatai Futures Co., Ltd.
Jiangsu Equity Exchange Co., Ltd.
China Southern Asset
Management Co., Ltd.
Bank of Jiangsu Co, Ltd.
E-Capital Transfer Co., Ltd.
Securities Branches
Huatai-PineBridge Fund
Management Co, Ltd.
PlanningandFinance
Department
DigitalOperation
Department
InformationTechnology
Department
CapitalOperation
Department
AssetCustody
Department
SalesandTrading
Department
SecuritiesInvestment
Department
FinancialInnovation
Department
FixedIncome
Department
FinancialProducts
Department
NetworkFinance
Department
WealthManagement
Department
Branches
DebtFinancing
Department
Margin Financing and Securities
Lending Department
Strategy and Development
Department
General Office
OperatingCenter
RescarchInstitute
ComplianceandRisk ManagementCommittee
AuditCommittee
DevelopmentStrategyCommittee
NominationCommittee
Remunerationand Appraisal Committee
Board of Directors
Senior Management
HUATAI SECURITIES
014
(III) The First-level Onshore and Offshore Subsidiaries of the Company
Name of the
subsidiary Address
Date of
establishment
Registered
capital
Responsible
person
Telephone
No.
Huatai Securities
(Shanghai) Asset
Management Co., Ltd.
Room 1222, 6 Jilong Road, China
(Shanghai) Pilot Free Trade Zone
October 16,
2014
260,000.00 Cui Chun
021-
28972188
Huatai International
Financial Holdings
Company Limited
62/F, The Center, 99 Queen’s
Road Central, Hong Kong, the PRC
April 5, 2017
HK$
10,200,000,002.00
Wang Lei
852-
36586000
Huatai Purple Gold
Investment Co., Ltd.
No. 180 Hanzhong Road, Nanjing,
Jiangsu Province, the PRC
August 12,
2008
600,000.00 Cao Qun
025-
83389999
Huatai Innovative
Investment Co., Ltd.
Room 701-8 to 701-11, 7/F, Block
28, Fengsheng Hutong, Xicheng
District, Beijing, the PRC
November 21,
2013
350,000.00 Sun Ying
010-
58034345
Huatai United
Securities Co., Ltd.
401, Building B7, Qianhai
Shenzhen-Hong Kong Fund
Town, No. 128 Guiwan Fifth
Road, Nanshan Street,
Qianhai Shenzhen-Hong Kong
Cooperation Zone, Shenzhen, the
PRC
September 5,
1997
99,748.00 Jiang Yu
010-
56839300
Huatai Futures Co., Ltd.
20/F, Li Feng Building, 761
Dongfeng Eastern Road, Yuexiu
District, Guangzhou, the PRC
July 10, 1995 160,900.00 Hu Zhi
020-
83901155
Jiangsu Equity
Exchange Co., Ltd.
3/F, Building 10, Financial City,
No. 377 Middle Jiangdong Road,
Jianye District, Nanjing, Jiangsu
Province, the PRC
July 4, 2013 20,000.00 Sun Hanlin
025-
89620288
Unit: Ten Thousand Yuan Currency: RMB
015
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ANNUAL REPORT 2021
(IV) Number and Distribution of Securities Branches and Other Branches of the Company
As of the end of the Reporting Period, the Company has 28 branch offices and 245 securities branches. For
details of the number and distribution of branch offices and securities branches of the Company, please
refer to “Appendix II: List of Branch Offices and Securities Branches” in this report.
Provinces,
Municipalities and
Regions
Number of
Securities
Branches
Provinces,
Municipalities and
Regions
Number of
Securities
Branches
Provinces,
Municipalities and
Regions
Number of
Securities
Branches
Anhui Province 5 Beijing 6
Inner Mongolia
Autonomous Region
3
Hebei Province 1 Fujian Province 4 Guangdong Province 23
Guangxi Zhuang
Autonomous Region
2 Hainan Province 2 Shanxi Province 1
Henan Province 3 Heilongjiang Province 5 Jilin Province 3
Hubei Province 29 Hunan Province 3 Jiangxi Province 3
Jiangsu Province 95 Liaoning Province 7 Shandong Province 7
Shanghai 16 Sichuan Province 7 Guizhou Province 1
Chongqing 1 Tianjin 4 Gansu Province 1
Shaanxi Province 2 Qinghai Province 1
Xinjiang Uygur
Autonomous Region
1
Ningxia Hui
Autonomous Region
1 Zhejiang Province 8 - -
HUATAI SECURITIES
016
VII. OTHER INFORMATION
(I) Accounting Firms
Accounting firm engaged by
the Company (domestic)
Name KPMG Huazhen LLP
Office address
8/F, KPMG Tower, Oriental Plaza, 1 East Chang’an
Avenue, Dongcheng District, Beijing, the PRC
Name of the signatory accountant Cheng Hailiang, Qian Ruwen
Accounting firm engaged by
the Company (Hong Kong)
Name
KPMG
Registered PIE Auditor under the Hong Kong Financial
Reporting Council Ordinance
Office address
8th Floor, Prince’s Building, 10 Chater Road, Central,
Hong Kong, the PRC
Name of the signatory accountant Lee Lok Man
Accounting firm engaged
by the Company (United
Kingdom)
Name KPMG Huazhen LLP
Office address
8/F, KPMG Tower, Oriental Plaza, 1 East Chang’an
Avenue, Dongcheng District, Beijing, the PRC
Name of the signatory accountant Cheng Hailiang
(II) Legal Advisors
Legal advisor engaged by the
Company (domestic)
Name King & Wood Mallesons
Office address
18th Floor, East Tower, World Financial Center, No. 1, Middle
East 3rd Ring Road, Chaoyang District, Beijing, the PRC
Legal advisor engaged by the
Company (overseas)
Name Clifford Chance
Office address
27/F, Jardine House 1 Connaught Place, Central, Hong Kong,
the PRC
(III) Share registrars
Share registrar for A Share
Name
China Securities Depository and Clearing Corporation
Limited, Shanghai Branch
Office address
No. 188 Yanggao South Road, Pudong New Area,
Shanghai, the PRC
Share registrar for H Share
Name Computershare Hong Kong Investor Services Limited
Office address
Shops 1712-1716, 17th Floor, Hopewell Center, 183
Queen’s Road East, Wanchai, Hong Kong, the PRC
017
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ANNUAL REPORT 2021
I. KEY ACCOUNTING DATA AND FINANCIAL INDICATORS
(I) Key Accounting Data and Financial Indicators for the Past Three Years
Unit: Thousand Yuan Currency: RMB
Unit: Thousand Yuan Currency: RMB
Item
2021
2020Increase/
decrease (%) 2019
Total revenue and other gains
51,926,404
40,534,436 28.10 32,436,781
Profit before income tax
16,272,562
13,504,376 20.50 11,585,965
Profit of this year-attributable to
shareholders of the Company
13,346,106
10,822,497 23.32 9,001,644
Net cash used in operating activities
(65,337,094)
(13,868,924) N/A (3,594,637)
Total amount of other comprehensive
income after tax this year
(626,084)
(539,317) N/A 634,281
Item
At the end
of 2021
At the end
of 2020
Increase/
decrease (%)
At the end
of 2019
Total assets
806,650,833
716,751,235 12.54 562,180,638
Total liabilities
654,615,049
584,439,200 12.01 436,525,930
Total equity attributable to
shareholders of the Company
148,422,810
129,071,500 14.99 122,537,479
Total equities
152,035,784
132,312,035 14.91 125,654,708
Total share capital (shares)
9,076,650,000
9,076,650,000 – 9,076,650,000
HUATAI SECURITIES
018
Summary of the
Results
HUATAI SECURITIES
(II) Key financial indicators
Key financial indicators Increase/decrease (%) 2019
2021
2020Basic earnings per share (RMB/share)
1.47
1.20 22.50 1.04
Diluted earnings per share (RMB/share)
1.46
1.19 22.69 1.03
ROE (%)
9.84
8.61
Increase of 1.23
percentage points
7.94
Debt-to-assets ratio (%)
76.93
77.20
Decrease of 0.27
percentage point
73.40
Net assets attributable to the Company’s
ordinary shareholders per share (RMB/share)
15.25
14.22 7.24 13.50
Note: Debt-to-assets ratio = (total liabilities-accounts payable to brokerage clients)/(total assets-accounts payable to brokerage clients)
(III) Net Capital of the Parent Company and Risk Control Indexes
Unit: Yuan Currency: RMB
Item
As of the end of the
Reporting Period
As of the end of the
previous year
Net capital
82,314,070,326.70
67,909,921,047.21
Net assets
126,702,081,824.87
111,971,511,426.66
Risk coverage ratio (%)
246.45
236.68
Net capital/net assets (%)
64.97
60.65
Net capital/liabilities (%)
21.42
21.86
Net assets/liabilities (%)
32.97
36.04
Value of proprietary equity securities and
derivatives/net capital (%)
49.80
49.91
Value of proprietary non-equity securities and
derivatives/net capital (%)
291.29
296.70
Core net capital
58,314,070,326.70
62,909,921,047.21
Supplementary net capital
24,000,000,000.00
5,000,000,000.00
Total risk capital provision
33,399,876,683.34
28,693,100,276.16
Total on-balance and off-balance assets
422,846,924,915.98
333,759,265,959.88
Capital leverage ratio (%)
15.99
21.08
Liquidity coverage ratio (%)
169.68
230.31
Net stable funding ratio (%)
126.98
130.22
019
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(IV) Key Performance Indicators
Total Equity attributable to shareholders of the
Company
Profit for the period–attributable to shareholders
of the Company
Source: Regular reports of the Company Source: Regular reports of the Company
Unit: 100 Million Yuan Currency: RMB Unit: 100 Million Yuan Currency: RMB
807. 8 5
106.97
873.36
92.77
843.57
62.71
1,033.94
50.33
1,290.71
108.22
1,225.37
90.02
1,484.23
133.46
2015 2015
2016 2016
2017 2017
2018 2018
2019 2019
2020 2020
2021 2021
1,500
1,200
900
600
300
0
150
120
90
60
30
0
HUATAI SECURITIES
020
Explanations: The data of equity and fund
trading volume is quoted from the statistics
of members of the Shanghai Stock Exchange
and the Shenzhen Stock Exchange, and the
business ranking of equity and fund trading is
quoted from Company’s internal statistics; the
number of monthly active users of ZhangLe
Fortune Path and its ranking are quoted from
the statistics of Analysys in December 2021; the
balance of margin financing and securities
lending is quoted from the regulatory
statements of the Company and the business
ranking of margin financing and securities
lending is quoted from Company’s internal
statistics; the holding scale and ranking
of non-money market funds are quoted
from the statistics from Asset Management
Association of China as of the fourth quarter
of 2021; the amount and ranking of equity
underwriting and bond underwriting are
quoted from Wind; the number and amount
of merger, acquisition and reorganization
and its ranking are quoted from the statistics
of merger, acquisition and reorganization
transactions approved and registered by the
CSRC based on the information available to
the public; the total asset management scale
is quoted from the regulatory statements of
Huatai Asset Management; average monthly
scale of private equity funds of private equity
subsidiaries and its ranking are quoted
from the statistics from Asset Management
Association of China as of the fourth quarter
of 2021; the issuing number and total amount
of enterprise asset securitization and its
ranking are quoted from Wind; AssetMark AoP
are quoted from the internal statistics of the
Company as of the end of the fourth quarter
of 2021; the market share of AssetMark and its
ranking are quoted from Cerulli Associates
and the TAMP industrial analysis on relevant
public information as of the end of the
third quarter of 2021; for the terms without
special illustration, the information is from the
statistics by the end of the Reporting Period
and the statistics for the Reporting Period.
Market ranking
Market ranking
Market ranking
Market ranking
Market ranking
Market ranking
Market ranking
Market ranking
Market ranking
Market ranking
Market ranking
WEALTH
MANAGEMENT
BUSINESS
INSTITUTIONAL
SERVICES
BUSINESS
INVESTMENT
MANAGEMENT
BUSINESS
INTERANTIONAL
BUSINESS
Equity and fund trading volume
RMB
The number of monthly active
users of ZhangLe Fortune Path
Balance of margin financing
and securities lending business
RMB
RMB
Equity underwriting amount
RMB
Bond underwriting amount
RMB
Number of merger, acquisition
and reorganization
(
approved and registered by CSRC
)
Amount of merger, acquisition
and reorganization
(
approved and registered by CSRC
)
RMB
RMB
Average monthly scale of private
asset under active management
RMB
The number of enterprise asset
securitization issuance
Scale of enterprise asset
securitization issuance
RMB
AssetMark AoP
USD
The market share of AssetMark
42.29
trillion
176.247
billion
931.103
billion
137.699
billion
93.2
billion
9
137
64.893
billion
167.112
billion
518.573
billion
41.982
billion
11.1%
93.488
billion
3
3
3 33
4
1
1
32
32
Holding scale of non-money
market funds
Total asset management scale
11.0181
million
021
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(V) Key Accounting Data and Financial Indicators for the Past Five Years
The financial conditions for the past five years are as follows:
1. Profitability
2. Assets
Unit: Thousand Yuan Currency: RMB
Unit: Thousand Yuan Currency: RMB
Item 2019 2018 2017
2021
2020Total revenue and other gains
51,926,404
40,534,436 32,436,781 24,506,734 31,323,372
Total expenses
38,283,823
31,233,707 23,577,265 19,017,372 20,278,706
Share of profits of associates
and joint ventures
2,629,981
4,203,647 2,726,449 959,309 539,978
Profit before income tax
16,272,562
13,504,376 11,585,965 6,448,671 11,584,644
Profit of this year-attributable to
shareholders of the Company
13,346,106
10,822,497 9,001,644 5,032,738 9,276,520
Item
December 31,
2021
December 31,
2020
December 31,
2019
December 31,
2018
December 31,
2017
Total assets
806,650,833
716,751,235 562,180,638 368,665,874 381,482,540
Total liabilities
654,615,049
584,439,200 436,525,930 263,916,270 292,892,628
Accounts payable to brokerage
clients
147,501,833
136,387,634 89,817,920 59,492,176 67,335,545
Total equity attributable to
shareholders of the Company
148,422,810
129,071,500 122,537,479 103,393,577 87,335,938
Total equity
152,035,784
132,312,035 125,654,708 104,749,604 88,589,912
Total share capital (shares)
9,076,650,000
9,076,650,000 9,076,650,000 8,251,500,000 7,162,768,800
3. Key Financial Indicators
Item 2019 2018 2017
2021
2020Dividend per share (RMB)
0.45
0.40 0.30 0.60
Note 1
–
Basic earnings per share (RMB/share)
1.47
1.20 1.04 0.66 1.30
Dilutive earnings per share (RMB/share)
1.46
1.19 1.03 0.66 1.30
ROE (%)
9.84
8.61 7.94 5.32 10.56
Debt-to-assets ratio (%)
Note 2
76.93
77.20 73.40 66.12 71.80
Net assets attributable to ordinary shareholders
of the Company per share (RMB/share)
15.25
14.22 13.50 12.53 12.19
Note 1: According to the resolution passed at the 2018 first extraordinary general meeting of the Company, the Company has implemented
the 2018 interim profit distribution plan by distributing a cash dividend of RMB3.00 (tax included) per 10 shares based on the total share capital
of 8,251,500,000 shares, with a total cash dividend of RMB2,475,450,000.00. Meanwhile, according to the resolution passed at the 2018 Annual
General Meeting of the Company, the Company has implemented the 2018 annual profit distribution plan by distributing a cash dividend of
RMB3.00 (tax included) per 10 shares based on the total share capital of 9,076,650,000 shares, with a total cash dividend of RMB2,722,995,000.00.
Note 2: Debt-to-assets ratio = (total liabilities-accounts payable to brokerage clients)/(total assets-accounts payable to brokerage clients)
HUATAI SECURITIES
022
Unit: Thousand Yuan Currency: RMB
Name of items
Balance at the
end of last year
Balance at the
end of the year
Change in the
current period
Effect on the profit
of the current
period in amount
Financial assets at fair
value through other
comprehensive income
15,946,372 9,477,837 (6,468,535) 787,799
Financial assets at fair
value through profit or loss
291,807,112 355,259,172 63,452,060 19,593,532
Derivative financial
instruments
(6,103,473) 4,604,583 10,708,056 (8,550,140)
Financial liabilities at fair
value through profit or loss
15,381,530 31,122,918 15,741,388 (336,603)
There is no difference between the net profit attributable to shareholders of the Company for 2021 and 2020
and the net assets attributable to shareholders of the Company as of December 31, 2021 and December 31,
2020 set out in the consolidated financial statements prepared in accordance with the CASBE and in the
consolidated financial statements prepared in accordance with the IFRSs.
II. DIFFERENCES IN FINANCIAL DATA PREPARED IN ACCORDANCE
WITH DOMESTIC AND FOREIGN ACCOUNTING STANDARDS
III. ITEMS MEASURED UNDER FAIR VALUE
023
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ANNUAL REPORT 2021
026
Our Group conducts business operations in the securities industry of which the operating income and
profit levels are highly dependent on the securities market trend and characterized by strong periodicity
and fluctuations. Our Group’s securities related businesses are dependent on and also benefit from the
economic growth and the development and performance of the capital market in the PRC, and are
also influenced by various factors including economic environment, regulatory environment, investor
sentiment and international market. The Group has maintained strong overall competitiveness with capital
scale, profitability, business strength and risk management capabilities ranking the top in the industry.
Details of industry position of the Group’s principal businesses during the Reporting Period, please refer
to “Management Discussion and Analysis and Report of the Board” in the section headed “Management
Discussion and Analysis” of this report.
In recent years, under the wave of digital transformation, the accelerated reform and opening up of capital
market in China has imposed underlying impacts on the development ecology of capital market and the
competitive landscape of the securities industry in all aspects. With the promulgation and implementation of
the new Securities Law, the merger of the Main Board and the SME (small and medium enterprises) Board of
the Shenzhen Stock Exchange, together with the newly launched Beijing Stock Exchange, the implementation
of the new delisting rules, the full implementation of the registration system reform in the future and the
steady advance of institutional two-way opening of the financial market system, it will facilitate the capital
market infrastructure system to be more mature and established, while the capital market will embrace
increasing attractiveness and international competitiveness. The securities industry will be presented with
multiple strategic development opportunities such as increased trading activity in issuance, business
expansion and upgrading, and growing demand for wealth management and institutional services, which
implies that securities companies equipped with truly core capabilities of modern investment banks will
win the initiative in future development and transformation. At the same time, against increasingly complex
internal and external market environment, and the accelerated deepening in the reform and opening up of
the capital market led by the full implementation of registration system, securities companies are exposed
to higher requirements in core professional capabilities and risk control.
The Group is a leading technology-driven securities group in China, with a highly collaborative business
model, a cutting-edge digital platform and an extensive and engaging customer base. Our principal
businesses comprise wealth management business, institutional services business, investment
management business and international business. The Group constructs a client-based organizational
I. DESCRIPTIONS OF OUR INDUSTRY DURING THE REPORTING PERIOD
II. DESCRIPTIONS OF OUR BUSINESS DURING THE REPORTING PERIOD
HUATAI SECURITIES
030
Summary of the
Company's Business
HUATAI SECURITIES
Strategic
Vision
Striving to Become a First-Class Investment Bank
With Both Domestic Advantages and Global Influence
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Wealth management Institutional services
Investment managementInternational business
Maintaining leadership in services
and platforms
Providing customers with first-class
comprehensive integrated financial
services
Developing outstanding asset
management brand
Helping customers grasp the
opportunities of international
asset allocation
Fintech Empowerment
Wealth
management
business
We provide customers with diversified wealth management services, including securities, futures and options brokerage,
financial products sales, fund investment advisory business, and capital-based intermediary business through mobile APP,
professional PC platform, subsidiaries and securities futures branch offices, Huatai International and its affiliated overseas
subsidiaries, in the mode of online and offline, domestic and overseas linkage. For securities, futures and options brokerage,
we mainly execute trades on behalf of our clients in stocks, funds, bonds, futures and options, etc. to provide trading services.
For financial products sales business, we mainly provide customers with a variety of financial products sales services and
asset allocation services, and the related financial products are managed by the Group and other financial institutions. Our
fund investment advisory business mainly involves upon acceptance of clients’ engagement, selecting specific category,
amount and timing of trading of investment funds on behalf of our clients within the scope of clients’ authorization in
accordance with terms of agreement and submitting trading applications including, among others, subscription, redemption
and conversion. In respect of capital-based intermediary business, we provide diversified financing services including margin
financing and securities lending as well as stock pledged lending. Key performance drivers to wealth management business
include fee and commission income, interest income, etc.
Institutional
services
business
With institutional sales serving as a link, we integrate investment banking, institutional investor services and investment
trading business resources to provide various types of corporate and institutional clients with all-round comprehensive
financial services, which mainly include investment banking business, prime brokerage business, research and institutional
sales business and investment and trading business.
(1) Investment banking business primarily consists of equity underwriting, debt underwriting, financial advisory, OTC business,
etc. For equity underwriting business, we provide IPO and equity refinancing services for our clients. For debt underwriting
business, we provide various types of bond financing services for our clients. For financial advisory business, we provide
clients with mergers-oriented financial advisory services based on industrial layout with a strategic point of view. For OTC
business, we provide clients with NEEQ listing and follow-on financing services, and relevant OTC businesses engaged in by
Jiangsu Equity Exchange. Key performance drivers to investment banking business include underwriting and sponsorship
fees, advisory fees, etc.
(2) Prime brokerage business mainly includes the provision of asset custody and fund services for various types of asset
management institutions, such as private and public funds, including settlement, liquidation, reporting and valuation. In
addition, it also provides margin trading, sales of financial products and other value-added services for clients of prime
brokerage. Key performance drivers to prime brokerage business include fees for fund custody and service business.
(3) Research and institutional sales business mainly consists of research business and institutional sales business. For
research business, we provide various professional research and advisory services for clients. For institutional sales business,
we promote and sell securities products and services to clients. Key performance drivers to research and institutional sales
business include incomes from services concerning various research and financial products.
(4) Investment and trading business mainly includes equity trading, FICC trading and OTC derivative transaction. The Group
conducts equity, FICC and other financial instruments transactions with its own funds, and reduces investment risks and
increases returns through various trading strategies and techniques. At the same time, in order to meet customers’ needs
for investment and financing as well as risk management, we also engage in market making business and OTC derivatives
business. In terms of equity trading, we invest and trade stocks, ETFs and derivatives, and engage in market making services
for financial products. In terms of FICC trading, we invest and trade all kinds of FICC and derivatives in the interbank and
exchange bond markets, and engage in the inter-bank bond market and bond connect market making services. In terms
of OTC derivative transactions, we develop and trade OTC financial products for customers, mainly including equity return
swaps, OTC options and structured notes. Key performance drivers to investment and trading business include various
investment incomes from equity, FICC products and derivatives, etc.
structure and mechanism, provides comprehensive securities and financial services for individual and
institutional clients through an organic online-offline synergy, and aims to become a leading investment
bank with strong domestic advantages and global influence.
031
Financial Report and
Documents for Inspection
Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
Investment
management
business
We accept fund entrustments from clients, develop and provide various financial products for our clients and manage
their assets through our professional investment and research platform as well as our substantial client base, effectively
satisfying their investment and financing needs. Our investment management business mainly consists of securities firm
asset management, private equity fund management and asset management for fund companies, etc. For securities firm
asset management, we participate in the operation of securities firm asset management business through our wholly-
owned subsidiary Huatai Asset Management; such business includes collective asset management business, single
asset management business, specialized asset management business and public offering fund management business
(which is operated on a differentiated basis from our public offering fund management business for fund companies
under the Group). For private equity fund management business, we operate private equity funds business, which includes
investment and management of private equity funds, through our wholly-owned subsidiary Huatai Purple Gold Investment.
For asset management business for fund companies, the Group holds non-controlling interests in two public offering fund
management companies, namely China Southern Asset Management and Huatai-PineBridge, through which we participate
in the operation of asset management business for fund companies. Key performance drivers to asset management
business include management fee, performance fee, investment income, etc.
International
business
The Group operates international business covering various countries and regions including Hong Kong and the United States
through its wholly-owned subsidiary Huatai International, and the wholly-owned subsidiaries of Huatai International including
Huatai Financial Holdings (Hong Kong), AssetMark and Huatai Securities (USA).
The operations of the Group in Hong Kong are mainly conducted by Huatai Financial Holdings (Hong Kong), a wholly-owned
subsidiary of Huatai International, primarily including equity business platform, fixed-income business platform, individual
financial platform, fund platform and flagship investment banking business. Through the equity business platform, we
conduct trading, design and sales of cross-border equity derivatives, providing capital-based intermediary services in
respect of various equity capital for our clients, and provide universal integrated financial services covering both domestic
and overseas markets and various industries for institutional clients around the globe. Through the fix-income business
platform, we carry out investment and trading of a variety of FICC and derivative instruments and provide FICC solutions
for all product categories, such as sales, trading and market making services to various institutional clients. Through the
individual financial platform, we provide brokerage, margin financing and wealth management services in respect of
different categories of assets around the globe for our clients, satisfying their multi-level and comprehensive financial needs.
In respect of the fund platform, we provide customized solutions in fields such as leveraged buyout, strategic M&A, pre-
listing financing and business expansion for our clients through the Greater Bay Area Fund under our management; the
China Concept Stock Return Fund focuses on mid to late-stage investment, cross-border M&A and split and privatization
investment opportunities in industries with growth potential. For flagship investment banking business, aiming to establish a
full-service and cross-border investment banking platform system, we provide both Chinese and international customers
with equity and debt underwriting and sponsoring services, as well as financial advisory services. In September 2019, Huatai
Financial Holdings (Hong Kong) obtained its membership of the London Stock Exchange and completed the registration as
a UK Cross-border Conversion Agency for Shanghai-London Stock Connect GDRs on the Shanghai Stock Exchange, thus is
capable of providing clients with the whole-process services of the issuance and trade of GDRs. In December 2020, Huatai
Financial Holdings (Hong Kong) became the first financial institution in Asia that obtained the qualification as market maker
of the London Stock Exchange. In December 2021, Huatai Financial Holdings (Hong Kong) was formally admitted as the
member of Turquoise under the London Stock Exchange Group.
The Group completed the acquisition of AssetMark in 2016. AssetMark is a leading turn-key asset management platform
in the United States and a third-party financial service institution that provides a series of services and an advanced
and convenient technology platform for investment advisors in respect of investment strategies and asset portfolios
management, customer relations management and asset custody. In July 2019, AssetMark completed its listing on the New
York Stock Exchange in the United States. In July 2021, AssetMark completed the acquisition of Voyant to further optimize
its technology platform and operating environment and thus maintain its leading position among the turn-key asset
management platforms.
In September 2018, Huatai Securities (USA) was registered in Delaware, USA as a foreign wholly-owned subsidiary of Huatai
International, aiming to promote the development of international business. In June 2019, upon approval from the US Financial
Industry Regulatory Authority, Huatai Securities (USA) obtained the US broker-dealer license. In 2020, it obtained the US
proprietary trading license.
Key performance drivers to international business include brokerage commission, underwriting sponsorship fee, advisory fee,
interest income asset management fee, etc.
HUATAI SECURITIES
032
Wealth management business
Shanghai Stock Exchange:
The Company was awarded “2020 Top 10
Options Brokers” (2020
年度十佳期權經紀商
)
The selection of “2021 Financial Institutions of
Excellent Competitiveness” (2021
卓越競爭力金融機
構
) held by China Business:
The Company was awarded “Securities
Company for Wealth Management of Excellent
Competitiveness” (
卓越競爭力財富管理證券公司
)
Analysys A10 Digital Summit (
易觀
A10
數字峰會
):
“ZhangLe Fortune Path” (
漲樂財富通
) was awarded
“2021 Outstanding Digital Application”(2021
年度卓越
數字應用
)
The selection of “2020-2021 Fintech Award” (2020-
2021
年度金融科技獎
) organized by The Asset:
“ZhangLe Global” (
漲樂全球通
) was recognized
as “Best Mobile Brokerage Application (Hong Kong
Area)” (
香港地區最佳手機券商
APP)
The data from Analysys:
“ZhangLe Fortune Path” (
漲樂財富通
) ranked top
in the industry in terms of NMAU by the end of 2021
The selection of the “Sixth Session of Broker APP List”
(
第六屆券商
APP
風雲榜
) organized by Sina Finance:
“ZhangLe Fortune Path” (
漲樂財富通
) was recognized
as “Top 10 APP Award of the Year” (
年度十佳
APP), “Best
Wealth Management Platform APP” (
最佳財富管理平台
APP), “Best Intelligent Service APP” (
最佳智能服務
APP)
and “Users’ Favorite APP” (
最受用戶喜愛
APP)
The selection of “2020 Fintech Awards” (2020
年金融科
技大獎
) organized by ETnet, a professional financial
information platform:
“ZhangLe Global” (
漲樂全球通
) was awarded
“Trading System-Outstanding Comprehensive Stock
Trading Mobile APP” (
交易系統－傑出全方位股票交易流
動應用程式
)
III. AWARDS AND HONORS
(I) Key awards and honors of the Group
(II) Key awards and honors of the business segments of the Company
The selection of “Best Practice Case of Office of Board of Directors of Public Companies 2021” (2021
年度上市
公司董辦最佳實踐案例
) organized by China Association for Public Companies:
The Company was awarded “Best Practice Case of Office of Board of Directors of Public Companies
2021”
The selection of “Evergreen Awards” (
長青獎
) organized by Caijing Magazine:
The Company was awarded “2021 Evergreen Awards • Green Award for Sustainable Development” (2021
年長青獎－可持續發展綠色獎
)
The selection of “China ESG Golden Awards 2021” (2021
年度中國
ESG
金責獎
) organized by Sina Finance:
The Company was awarded “Best Securities Company for Responsible Investment Award” (
責任投資最佳
證券公司獎
)
033
Financial Report and
Documents for Inspection
Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
Institutional services business
Shanghai Stock Exchange:
Huatai United Securities was awarded “2020
Outstanding Underwriter of Corporate Bonds”
(2020
年度公司債券優秀承銷商
), “2020 Outstanding
Underwriter of Corporate Bond Innovative Products”
(
2020
年度公司債券創新產品優秀承銷商
), “2020 Excellent
Trust Manager” (2020
年度優秀受託管理人
), etc.
The selection of “2021 Junding Award for Investment
Banks in China’s Securities Industry” (2021
年中國證
券業投資銀行君鼎獎
) organized by Securities Times:
Huatai United Securities was awarded “Junding
Award for All-round Investment Bank in China’s
Securities Industry” (
中國證券業全能投行君鼎獎
)
,“Junding
Award for Independent Financial Advisor in China’s
Securities Industry” (
中國證券業獨立財務顧問君鼎獎
),
“Junding Award for STAR Market Investment Bank in
China’s Securities Industry”(
中國證券業科創板投行君
鼎獎
), etc.
The selection of the “Second Session of Investment
Bank Most Respected by Listed Companies” (
第二
屆最受上市公司尊敬的投行
) organized by Securities
Times:
Huatai United Securities was awarded “Top
10 Investment Banks Most Respected by Listed
Companies” (
最受上市公司尊敬的十佳投行
), “IPO
Investment Bank Most Respected by Listed
Companies” (
最受上市公司尊敬的
IPO
投行
),
“M&A Investment Bank Most Respected by Listed
Companies” (
最受上市公司尊敬的併購投行
), “Bond
Investment Bank Most Respected by Listed
Companies” (
最受上市公司尊敬的債券投行
), etc.
National Business Daily:
The Company was awarded “Most Influential
Custody Broker of the Year”
Shenzhen Stock Exchange:
Huatai United Securities was awarded “2020
Outstanding Bond Duration Management Institution”
(2020
年度優秀債券存續期管理機構
), etc.
The selection of the “Fourteenth Session of Best
Investment Bank” (
第十四屆最佳投行
) organized by
Xin Cai Fu(
《新財富》
):
Huatai United Securities was awarded “Best
Domestic Investment Bank” (
本土最佳投行
), “Best
Investment Bank in Equity Underwriting” (
最佳股權承
銷投行
), “Best Investment Bank in Bond Underwriting”
(
最佳債權承銷投行
), “Best IPO Investment Bank” (
最
佳
IPO
投行
), “Best Refinancing Investment Bank” (
最
佳再融資投行
), “Best Investment Bank in Mergers and
Acquisitions” (
最佳併購投行
), “Best Investment Bank
in Serving Overseas Markets” (
海外市場能力最佳投行
),
“Most Innovative Investment Bank” (
最具創新能力投行
),
etc.
The selection of “Institutional Investor • Caixin All –
China Research Team Awards” (
機構投資者
•
財新資本
市場分析師成就獎
) in 2021:
The Company was awarded “Best Analyst Team
(Mainland China) No. 3” (
最佳分析師團隊
(
大陸
)
第三
名
), “Best Analyst Team (Overseas) No. 7” (
最佳分析
師團隊
(
海外
)
第七名
), “Best Sales Teams (Mainland
China) No. 2” (
最佳銷售團隊
(
大陸
)
第二名
), “Best
Sales Teams (Overseas) No. 8” (
最佳銷售團隊
(
海外
)
第八名
), etc.
Financial Times:
The Company was awarded “Best Asset Custody
Securities Company of the Year” (
年度最佳資產託管證
券公司
)
HUATAI SECURITIES
034
Investment management business
Shanghai Stock Exchange:
Huatai Asset Management was awarded
“Excellent Manager for Asset Securitization
Business for 2020” (2020
年度資產證券化業務優秀管
理人
), “Excellent Manager for Asset Securitization
Innovative Business for 2020” (2020
年度資產證券化
創新業務優秀管理人
) and “2020 Special Award for
Epidemic Prevention and Control” (2020
年度疫情防
控專項獎
)
Shenzhen Stock Exchange:
Huatai Asset Management was awarded
“Outstanding Innovative Agency for Fixed-Income
Business for 2020” (2020
年度優秀固定收益業務創新機
構
)
The selection of the “2021 Golden Bull Award for
China’s Securities Industry” (2021
中國證券業金牛獎
)
held by China Securities Journal:
Huatai Asset Management was awarded “2021
Golden Bull Broker of Collective Asset Manager”
(2021
金牛券商集合資產管理人
)
The selection of “2021 Yinghua Prize for Brokers on
Asset Management in China” (2021
中國券商資管英華
獎
) organized by China Fund News:
Huatai Asset Management was awarded “Prize
for Best Chinese Fixed-Income Brokers on Asset
Management” (
中國最佳固收類券商資管獎
), the “Prize
for Best ABS Brokers on Asset Management” (
中國最
佳
ABS
券商資管獎
) and the “Prize for Best Innovative
Product of Chinese Brokers on Asset Management”
(
中國最佳券商資管創新產品獎
)
The selection of the “List of Eastmoney for the
Year of 2020” (2020
東方財富風雲榜
) organized by
Eastmoney.com (
東方財富網
):
Huatai Futures was awarded “Best Futures Asset
Management” (
最佳期貨資管
)
The selection of “ChinaVenture Awards for 2020” (
投
中
2020
年度榜
) held by ChinaVenture Investment:
Huatai Purple Gold Investment was awarded “Best
Chinese Subsidiaries of Brokers for Private Funds TOP
10” (
中國最佳券商私募基金子公司
TOP10), “Best Chinese
Private Equity Investment Institutions Top 20” (
中國
最佳中資私募股權投資機構
TOP20), “Best China Private
Equity Investment Institutions Top 50” (
中國最佳私募股
權投資機構
TOP50), “Best Institutions for Investment in
Biomedical Fields TOP 20” (
最佳生物醫藥領域投資機構
TOP20), etc.
Shanghai Stock Exchange:
Huatai-PineBridge was awarded “Top Ten ETF
Managers” (
十佳
ETF
管理人
)
China Securities Journal:
Huatai Purple Gold Investment was awarded
“Golden Bull Brokers for Equity Investment” (
金牛券商
股權投資優勝機構
)
China Southern Asset Management was awarded
“Golden Bull Fund Company for Passive Investment of
2020”(2020
年被動投資金牛基金公司獎
)
Huatai-PineBridge was awarded “Golden Bull
Fund Company for Passive Investment” (
被動投資金牛
基金公司
)
Shanghai Securities News:
China Southern Asset Management was awarded
“Golden Fund • TOP Bond Funds Return on Fund
Managers for 2020” (2020
年度金基金
•
債券投資回報基
金管理公司獎
)
Huatai-PineBridge was awarded “2020 Golden
Fund • Fund Management Company for Passive
Investment Award” (2020
年度金基金
•
被動投資基金管
理公司獎
)
21st Century Business Herald:
China Southern Asset Management was awarded
“Golden Sail Award–Outstanding Fund Management
Company for 2021” (
金帆獎－
2021
年度卓越基金管理公司
)
035
Financial Report and
Documents for Inspection
Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
International business
The selection of “Annual Awards”
(
年度獎項
)
organized
by PDI (Private Debt Investor), an internationally
renowned private debt industry magazine:
Huatai International was awarded “Deal of
the Year in Asian Pacific Area for 2020” (2020
年
度亞太區最佳項目
) and “Best Real Estate Private
Debt Investment Fund Manager in Asian Pacific
Area for 2020” (2020
年度亞太區最佳地產私募債權投
資基金管理人
)
The Selection of “2021 Financial Institution
Awards” (
2021
金融機構大獎
) organized by Bloomberg
Businessweek/Chinese Edition:
Huatai International was awarded “Outstanding
Securities Company Award” (
證券公司傑出大獎
),
“Risk Management Excellence Award” (
風險管理傑
出大獎
), “Excellence Award for Digital Innovation”
(
數碼創新卓越大獎
), “Outstanding Initial Public
Offering Project Award” (
首次公開招股項目卓越大獎
)
and “Corporate Financing Excellence Award (the
Greater Bay Area of the PRC)” (
企業融資卓越大獎
(
中
國大灣區
))
The selection of “2021 China Financing Awards”
(2021
年中國融資大獎
) held by China Financing:
Huatai International was awarded “Star
Investment Bank in Capital Market” (
資本市場明
星投行
)
The selection of “China Securities Golden Bauhinia
Award” (
中國證券金紫荊獎
) organized by Hong Kong
Ta Kung Wen Wei Media Group:
Huatai International was awarded “Best Chinese
Broker” (
最佳中資券商
)
The paid-in capital of Huatai Financial Holdings
(Hong Kong) amounted to HK$10.2 billion, and its
capital scale ranked among the top in Hong Kong
The selection of “Stock Connect Awards for 2020”
(2020
年度滬深港通獎項
) organized by HKEX:
Huatai Financial Holdings (Hong Kong) was
awarded “Top Breakthrough Broker of the Year 2020”
at HKEX Stock Connect Award (2020
滬深港通交投躍升
經紀商大獎
)
Cerulli Associates and other public information:
As of the end of the third quarter of 2021,
AssetMark occupied a market share of 11.1% in the
TAMP industry in the United States, ranking the third
HUATAI SECURITIES
036
IV. ANALYSIS OF CORE COMPETITIVENESSES DURING THE REPORTING
PERIOD
(I) A technology-driven pioneer in China’s securities industry transformation
The Group has been maintaining a high level of resources investment in information technology for many years, and
comprehensively promoting the Group’s digital transformation focusing on the overall target of “client’s success,
business innovation, operation optimization and employee empowering”, and is committed to thoroughly transforming its
business and management model with digital thinking and platforms. It strove to build a leading self-developed system
for information technology research and development to achieve co-creation of technology and business through all-
round technology empowerment, and create business model innovation driven by digitalization and advantages of
the whole business chain with platform-based support. Meanwhile, with equity investment serving as a link, the Group
focused on outstanding technological innovation companies to accelerate the construction of the fintech ecosystem
and actively established presence in cutting-edge sectors, such as big data, artificial intelligence, blockchain, cloud
computing, RPA security and 5G. In the field of wealth management, the Group constantly developed and strengthened
the mobile finance strategy with a commitment to building personalized wealth management platforms with the aim
of mobilization, digitalization and intellectualization; and leveraged the “AORTA” (
聊
TA) platform to empower front-line
employees, effectively increasing customer scale and activity. In the field of institutional services, Taking “Xing Zhi 2.0” (
行
知
2.0), our self-developed digital platform serving institutional customers, as the guide, Securities Lending Path (
融
券通
), credit analysis management system (CAMS system) and INCOS cloud platform combined all links of institutional
services, continuously innovating customer experience, improving service efficiency and promoting the continuous
extension of customer ecology. On the basis of various advanced digital middle office systems developed in-house,
the Company continuously advanced the development of platforms such as FICC trading platform and distributed fast
trading platforms to expedite the establishment of cores of trading and enhance pricing capabilities. During the Reporting
Period, the Company launched Securities Lending Path 3.0 (
融券通
3.0) to move toward open connection from efficient
empowerment, which promoted the innovative development of securities lending business and the continuous expansion
of the scale of securities lending. The Company introduced an integrated trading platform covering both the domestic and
overseas markets to provide customers with full business support at home and abroad, thus creating excellent transaction
services. Moreover, the Company created Data Intelligence Middle Platform 3.0 (
數智中台
3.0) to build an integrated
data infrastructure platform. The technical competency and talent team the Group developed through independent
research and development over the years have laid a solid foundation for the building of platform-based and systematic
competitive advantages.
(II) The open digital wealth management platform provides efficient and professional services to mass
customers
The Group has established one of the most dynamic wealth management platforms in China’s securities industry with
20.00 million customers. Drawing on advanced wealth management service system and experiences at home and abroad,
the Group accelerated the development of wealth management business from product, service, procedure, technology
platform and other aspects. The Group’s wealth management business has formed a platform-based development
model driven by its headquarters. The Group launched “ZhangLe Fortune Path” (
漲樂財富通
), a mobile service platform, for
our clients, and “AORTA” (
聊
TA), a cloud platform, for investment advisor. The two platforms strengthened their functions,
deepened their coordination, and efficiently and accurately empowered front-line investment advisors through iterations
and upgrades. As of the end of the Reporting Period, the cumulative download volume of “ZhangLe Fortune Path” (
漲樂財富
通
) was 65.3196 million. According to the statistics of Analysys, the NMAU of “ZhangLe Fortune Path” (
漲樂財富通
) amounted
to 11.0181 million as at the end of December 2021, ranking the first among all APPs of securities companies. During the
Reporting Period, the Group as one of the first batch of securities companies which obtained the pilot qualification for fund
investment advisory business, our fund investment advisory business has realized rapid development, and our product
research, strategic operation and companion service systems have been continuously improving.
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(III) First-class investment banking business with systematic services for clients and high-quality
development
With fully seizing the opportunities in China’s economic transformation and upgrading and in-depth reform of capital
market centering on the full implementation of registration system, the Group continued to speed up industrial layout,
actively implemented the strategy of platformization and ecologicalization with investment banking customer-centric,
and gave full play of securitized assets as a traffic portal by taking advantage of the big platform covering the whole
business chain. At the same time, the Group continuously enhanced the linkage and coordination between the investment
banking business and other various businesses to build an ecosystem for institutional customer services with the
integration of “buyers + sellers + research institutes”. The Group constantly provided new and old customers with domestic
and overseas integrated professional investment banking services while going deep into the industry to successfully
explore and acquire a number of high-quality customers in key industries. The Group retained its leading position in
serving technology innovation with 109 IPO accepted under the STAR Market and the ChiNext registration system, which
ranked the third in the market. In 2021, with the launch of public REITs, a major innovative product in the market, the Group
actively promoted relevant business and successfully advanced the first batch of public REITs launched to market. For
the M&A and restructuring business, the Group focused on advancing benchmark large-scale and innovative projects
and actively explored continuous services for customers, maintaining its leading position in the industry. Since 2012, the
total transactions of M&A and restructuring of the Group, being approved by and registered with the CSRC, reached 150,
ranking the first in the market. During the Reporting Period, the Group’s lead-underwriting amount of full variety bonds was
RMB931.103 billion, ranking the third in the industry. The full implementation of the registration-based IPO system and the
increase in the proportion of direct financing will be the theme of the capital market in 2022. Relying on increasingly active
equity and debt financing and industrial consolidation activities in the capital market, the Group will embrace sound
development opportunities.
(IV) Comprehensive asset management platform with both scale and innovation advantages
Relying on the large customer base and advantage in the whole business chain resources, the Group has established
one of the leading asset management platforms in the industry by giving full play to its abilities in exploring investment
bank assets, risk pricing and product design. The total amount of assets under asset management business ranked the
forefront of the industry with continuous improvement in the capability and scale of active management. As of the end
of 2021, the scale of asset management was RMB518.573 billion, and the scale of active management further increased.
Our management products cover major asset categories forming a product system with a considerable scale and wide
coverage, which helped the Group build significant operational advantages and market influence. The Group focused
on the characteristics of brokers, systematically created “basic products + specialized products”, strengthened the two-
way driving of the Group and established the output model of asset-end products to broaden the size of products and
meet different needs of the Group, retail customers and high-net-worth customers in the market for product forms and
risk return. Meanwhile, through customized services featuring multiple assets and multiple strategies, the Group provided
a basket of customized comprehensive financial services for institutional customers, which met customers’ needs for
product forms, liquidity and returns through competitive fixed-income products as well as featured products such as FoF
and MoM. The Group is a leader of ABS product designs in the industry, and has set a benchmark for the industry through
constant innovation in underlying assets, transaction structure and other aspects. It has issued multiple notes in areas
such as epidemic control and prevention, and green finance to support real economy projects, with the business scale
continuously ranking the top in the industry.
HUATAI SECURITIES
038
(V) Acceleration in global layout and creation of cross-border ecology to march toward a new stage of high-
quality development
The Group always adheres to the strategy of constantly expanding its international business layout along with the international
development of customers, and offers global resources to its customers through continuous deepening of integrated cross-
border linkage and enhancing the comprehensive cross-border financial services platform system, to better serve the overseas
expansion of Chinese customers and the domestic investment of international investors. During the Reporting Period, the
international rating agency Standard & Poor’s raised the credit rating to “BBB+” from “BBB” for the Company and its subsidiary
Huatai International, and maintained the rating of “A-2” for short-term issuer. During the Reporting Period, leveraging on the
Group’s domestic resources and taking cross border as the starting point, Huatai International returned to the origin of brokers
and focused on the development of capital-based intermediary. It deeply cultivated the integrated platform-based and cross-
border service ecosystem with customer-oriented business concept through effective domestic and overseas linkage, business
synergy, strengthened risk control and platform operations, so as to promote the healthy development of various businesses.
At the same time, during the Reporting Period, Huatai Financial Holdings (Hong Kong) continued to deepen its “4+1” business
platform system with the equity business platform, fixed-income business platform, individual financial platform, fund platform
and flagship investment banking business, which facilitated its differentiated competitive advantages. As of the end of the
Reporting Period, the asset scale of Huatai International exceeded HK$200 billion with continual improvement of comprehensive
strength and ranking at the forefront of Chinese securities companies in Hong Kong. During the Reporting Period, Huatai
Financial Holdings (Hong Kong) was formally admitted as the member of Turquoise under the London Stock Exchange Group,
emerging as the largest securities company in Asian in terms of asset scale with dual memberships of the London Stock
Exchange and Turquoise, which enhanced the ability of the Company to conduct international development and participate in
mainstream international capital markets. During the Reporting Period, Huatai International participated in and completed 6 IPO
sponsored–projects and ranked the fifth among Chinese securities companies in Hong Kong in terms of the amount sponsored.
In addition, AssetMark has always maintained independence in operation and completed the acquisition of Voyant during the
Reporting Period. It kept a steady growth in the asset scale under management with its leading business model and advanced
technology platform, consolidated industry leadership, and constantly increased the Group’s international business revenue.
(VI) Comprehensive risk management featuring professional and platform advantages
The Group has a sound risk management culture and clear risk management objectives, and “stability” is always an
important part of the core values of the Group. The Group is committed to forging an onshore and offshore integrated
risk management system with adhering to the core risk management philosophy of high engagement, full coverage
and deep penetration and taking collectivization, specialization and platformization as the main approach. The Group
has accumulatively established an effective risk management framework, procedures and measures that adapt to the
international development of the Company’s businesses with focus on developing the abilities of professional forward-
looking risk evaluation and risk identification capability. It promoted the penetration of risk control on key business and
areas at home and abroad to dynamically monitor and early warning, and rapidly response to risks. Attaching great
importance to the application of advanced IT technology in risk management, the Group solidified various risk control
processes and key nodes with technology to build a risk management workflow driven by technology systems and data
on an on-going basis. During the Reporting Period, the Group comprehensively upgraded the framework for building
integrated risk management platform with outbound extending to achieve integrated technical support onshore and
offshore, and promote the transformation of the risk management model and improve efficiency empowered by
technology.
(VII) Top-ranking talent team and diversified shareholding structure
The consistent development of market-based systems and mechanisms is a key driving force for the continuous
transformation and transcendence of the Group. The Group’s professional manager system has been implemented for
two years, and it has built a contractual, market-oriented and professional operation and management team. The new
operation and management team has broad vision, rich experience and strong business capabilities, and is leading
the Company to open up a new development situation. The Group is deeply rooted in the corporate culture gene of
“technology empowerment, innovation and initiative”, and continuously enriches and deepens the cultural connotation
of “openness, inclusiveness, innovation, struggle and responsibility”, accumulating lasting power and vitality for the in-
depth promotion of the “two-pronged”
( 雙輪驅動 )
strategy. Focusing on optimizing talent structure and improving talent
effectiveness, the Group is committed to building a platform-based talent development model towards the professional,
high-caliber, younger and international talents, in bid to promote the growth of talents together with the organization
and transform its talent advantage into a core competitive advantage. The Group has established and improved a
mechanism for the selection and appointment of talents based on ability and contribution, established a market-
oriented employment mechanism and compensation incentive mechanism. During the Reporting Period, the Company
implemented the restricted share incentive scheme for senior and middle management and core staff, which fully
demonstrated the concept of benefits and risks sharing with employees, and pursuit of sustainable development together,
so as to further stimulate the vitality of market-oriented organizations. Since 2018, the Group has started the reformation
of mixed ownership and brought in important strategic investors, established a more diversified shareholding structure.
The diversified and balanced structure of shareholders and the Board has effectively enhanced the transparency of the
corporate governance and presented new concepts and new strategic resources for the Group’s future development.
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ANNUAL REPORT 2021
042
MANAGEMENT DISCUSSION
AND ANALYSIS and Report
of the Board
I. OPERATION DISCUSSION AND ANALYSIS
Unit: Thousand Yuan Currency: RMB
Segment
Segment
revenue
and other
income
Segment
expenses
Segment
results
Segment
profit
margin
(%)
Year-
on-year
change of
segment
revenue
and other
income
(%)
Year-
on-year
change of
segment
expenses
(%)
Year-on-year
change of
segment profit
margin
Wealth
management
business
26,159,829 (18,549,453) 7,610,376 29.09 34.31 30.51
Increase of 2.06
percentage
points
Institutional
services
business
12,495,351 (7,574,761) 4,930,421 39.46 18.72 17.86
Increase of 0.41
percentage
point
Investment
management
business
4,162,162 (1,290,760) 3,420,097 82.17 2.26 (26.50)
Decrease
of 40.41
percentage
points
International
business
7,892,395 (6,463,785) 1,430,109 18.12 42.19 22.18
Increase of 13.43
percentage
points
Others
(including
offset)
1,216,667 (4,405,064) (1,118,441) (91.93) 33.47 24.19
Increase of 30.81
percentage
points
Segment total 51,926,404 (38,283,823) 16,272,562 31.34 28.10 22.57
Decrease of
1.98 percentage
points
HUATAI SECURITIES
Total size and year-on-year growth rate of investable
assets held by individuals in China
Number and year-on-year growth rate of high net worth
individuals with investable assets over RMB10 million
Unit: trillion yuan Currency: RMB
Unit: ten thousand people
Unit: % Unit: %
(I) Wealth management business
1. Market environment and industry trend of wealth management business
(1) The in-depth development of the wealth management market in China drove business
transformation and upgrading and the space for development in the wealth management industry
was broad
The wealth management institutions with outstanding business capabilities and mature service systems
will embrace development opportunities, due to the continuous release of the potential of China’s real
economy, the steady advancement of financial supply-side structural reform, the development and
improvement of a multi-level capital market, the increasing supply of financial investment products and the
continuous growth of total social wealth, the optimization of asset allocation structures of residents as well
as the increasing demand for professional investment advisory. Obtaining customers’ minds based on the
service model of branding, content marketing and platform operation will become the key to the success
of the wealth management business of securities companies in the future. According to the statistics of
China Merchants Bank’s private wealth report, as of the end of 2021, the overall scale of investable assets
held by individuals in China reached approximately RMB268 trillion, representing an increase of 11.20% from
the end of 2020; the number of high-net-worth individuals with personal investable assets of over RMB10
million reached approximately 2.96 million, representing an increase of 12.98% from the end of 2020. Under
the background of construction a new dual-cycle development pattern, market-wide registration reform,
increased industry penetration rate in wealth management and increased demand for specialized business,
etc., wealth management institutions that focus on building an innovation-driven wealth management
business ecosystem, forge wealth management service capabilities on the whole business chain, enhance
the customer-centric service concept, deeply understand diversified customer needs, and pay attention
to customer’s full life cycle, full category product and services are expected to continue to expand their
competitive advantages and provide all-round and comprehensive financial services for customers.
129.00
241.00
268.00
2015
2016
2017
2018
2019
2020
2021
300
250
200
150
100
50
0
30%
20%
10%
0%
165.00
190.00
20.50%
20.50%
27. 91%
27. 91%
13.94%
13.94%
1.06%
1.06%
11.20%
11.20%
200.00
5.26%
5.26%
CAGR
+12.96%
188.00
188.00
126.00
262.00
296.00
220.00
158.00
197.0 0
2015
2016
2017
2018
2019
2020
2021
300
250
200
150
100
50
0
30%
20%
10%
0%
CAGR
+15.30%
5.35%
5.35%
19.09%
19.09%
12.98%
12.98%
18.35%
18.35%
11.68%
11.68%
187. 0 0
187. 0 0
25.40%
25.40%
Source: China Merchants Bank's private wealth report Source: China Merchants Bank's private wealth report
Total size of investable assets
Number of high net worth individuals
Year-on-year growth rate
Year-on-year growth rate
(2) Changes in clients’ demands and market competition trends continuously promoted the
enhancement of the wealth management service capability of securities companies
With the continuous advancement of the comprehensive deepening reform of the capital market, the
continuous expansion of the new pattern of two-way opening of the financial market, the accelerated
penetration of Fintech into the securities industry, and the increasingly fierce market competition, wealth
management institutions are facing diversified wealth management demands of customers and stricter
requirements on whole-process experience. Building a wealth management service model under the
045
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(3) Fintech empowerment and digital transformation reshape the operation and management model
and lead the iterative upgrade of the wealth management industry
In recent years, securities companies have proactively grasped the new trend of the continuous expansion
of Fintech application scenarios and the accelerated penetration of digitalization, by empowering all
links of the wealth management business value chain through Fintech application innovation, building
a digital, platform-based and ecological new wealth management service model, so as to realize the
synergy, integration and sharing of internal and external resources and build a business model that
integrates technology and business in an all-round way. Moreover, securities companies continued to
optimize customer experience, improve business process, enhance operating efficiency, create new
drivers for business growth and enhance the capabilities of securities companies in providing customers
with professional, intelligent, and integrated financial services. Fintech and digital transformation have
become basic driving forces to evolution of the financial ecosystem and strategic commanding heights
for the competitiveness of securities companies, which will profoundly change the business model,
business structure and operation systems of securities companies and will be the core driving force to the
development of the securities industry in the next strategic cycle. In particular, the prevention and control of
the COVID-19 epidemic has further deepened the demand for online financial services and the integration of
Fintech with business scenarios will be closer. The inevitable choice of a large domestic securities company
to build differentiated competitive advantages and achieve continuous innovation in business models is
to use Fintech empowerment, fully advance digital transformation, reshape business development with
new ecosystem, continuously improving the wealth management business system and increasingly
enhancing the wealth management service capability have become important directions for the strategic
transformation of securities companies. During the Reporting Period, the domestic stock market index hiked
with the Wind All China Index rose by 9.17%, the Shanghai Composite Index rose by 4.80%, the Shenzhen
Component Index rose by 2.67%, and the ChiNext Index rose by 12.02%; in terms of major international indexes,
the S&P 500 rose by 26.89%, the Nasdaq rose by 21.39%, the Dow Jones Industrial Average rose by 18.73% and
the FTSE 100 rose by 14.30%. In the context of continuously strengthened linkages between domestic and
foreign capital markets, gradually improved regulatory policies and market mechanisms, and constantly
expanded wealth management instruments and product supply, the complexity of asset allocation
services is increasing, and clients have more recognized the allocation opinions and the value of services
of professional wealth management institutions with global vision and international competitiveness. The
expansion of pilot institutions of fund investment advisory business and the opening of pilot optimization
of account management function of securities companies will promote the accelerated upgrading of the
wealth management business model. Financial institutions which firmly transform towards a comprehensive
business model with coordinated development of multiple businesses, continuously improve professional
asset allocation service capabilities, and creating long-term value for customers will have a better chance
to gain an advantage in future competition.
9.17%
26.89%
4.80%
21.39%
2.67%
18.73%
12.02%
14.30%
15%
12%
9%
6%
3%
0%
30%
25%
20%
15%
10%
5%
0%
Trends of major international indexes in 2021
Source: WindSource: Wind
SSE
Composite
Index
Wind All
China
Index
Shenzhen
Component
Index
ChiNext
Price
Index
S&P
500
NASDAQ
Index
Dow Jones
Industrial Average
FTSE
100
Trends of major China-related indexes in 2021
HUATAI SECURITIES
046
2. Operational measures and achievements of wealth management business
(1) Securities, futures and options brokerage business
During the Reporting Period, the Group deeply concentrated on the wealth management demand of
customers, focused on building the new structure of wealth management business platform and operation
model, constantly expanded the business coverage and continuously expanded the size of customers and
customer assets, further improving the market influence of the wealth management business. It continued
to build the development advantage with the linkage of dual platforms, namely the “ZhangLe Fortune Path”
(
漲樂財富通
) platform and the “AORTA” (
聊
TA) platform, and formed a closed business loop to continuously
strengthen the capability of platforms in empowering customers and investment advisory and enhance
the customer stickiness and the activeness of platforms. With the integrated operation of platforms as the
core and the contents as key drivers, the Group paid attention to traffic operation and customer operation,
improved the full-cycle customer operation chain and continuously enhanced the capability on traffic
undertaking and transformation and the full-cycle service operation of customers. Based on the customer
hierarchical and grading system and their differentiated needs, it also continued to build a professional
investment consultant team and comprehensively enhanced the professional capabilities with asset
allocation services as the core, so as to expand the width and depth of investment advisory services.
The Group continuously promoted innovation in products and services of the “ZhangLe Fortune Path” (
漲樂
財富通
) platform and newly launched the content operation model with short videos and live broadcasts as
carriers and actively built the new platform of the “personalized” ZhangLe Fortune Path towards customers,
fully improving the level of customer services and constantly consolidating the leading position in the
industry. During the Reporting Period, “ZhangLe Fortune Path” (
漲樂財富通
) had a download volume of 7.2432
million, with a cumulative download volume of 65.3196 million since its launch; the number of accounts
opened by mobile terminal customers was 2.5995 million, accounting for 99.42% of all accounts; 96.13% of
trading customers used “ZhangLe Fortune Path” (
漲樂財富通
) to conduct transactions. According to the
statistics of Analysys Think Tanks (
易觀智庫
), during the Reporting Period, the average monthly activity of
“ZhangLe Fortune Path” (
漲樂財富通
) was 8.9131 million. As of the end of the Reporting Period, the monthly
activity was 11.0181 million, ranking the first among securities company apps, which means “ZhangLe Fortune
Path” (
漲樂財富通
) has continued to play its important role as the core platform carrier of the Group’s wealth
management business. At the same time, the Group promoted the construction of “ZhangLe Global” (
漲樂全
球通
) platform in an orderly manner and continuously consolidated the basic trading service capability of
the platform, and be committed to providing customers with one-stop investment management services
for global assets. The cumulative download volume of “ZhangLe Global” (
漲樂全球通
) was 927,300 since its
launch. During the Reporting Period, the average monthly activity was 103,100.
technology, strive to build open and win-win digital new ecosystems and provide customers with all-round
wealth management services.
296.54
84.22%
84.83%
87. 24%
88.33%
90.25%
93.00%
94.76%
94.51%
532.43
583.96
663.69
755.03
889.66
891.31
2015
2018Q2 2018Q4
2019Q2 2019Q4
2020Q2 2020Q4
2021Q42021Q22016
2017
2018
2019
2020
2021
1,000
800
600
400
200
0
100%
90%
80%
70%
60%
CAGR
+20.13%
Average NMAU of “ZhangLe Fortune Path”
Proportion of the number of users trading through
“ZhangLe Fortune Path”
Source: Statistics from Analysys Source: Internal statistics from the Company
Unit: ten thousand
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The Group further strengthened its advantages in trading services based on advanced platforms. According
to the statistics of members of the Shanghai and Shenzhen Stock Exchanges, the Group’s equity and fund
trading volume totaled RMB42.29 trillion, ranking the first place in the industry. As of the end of the Reporting
Period, according to internal statistics, the total assets of client accounts reached RMB5.40 trillion.
Note: In view of the fact that Wind Information no longer collects and publishes its member trading volume data, the data of trading volume
in 2020 and 2021 are cited from the Shanghai and Shenzhen Stock Exchange members’ statistics in which the fund data do not include trading
volume of money market funds on the Shanghai Stock Exchange.
2021 2020
Type of securities
Agency transaction amount
(in RMB100 million)
Type of securities
Agency transaction amount
(in RMB100 million)
Stocks
392,026.40
Stocks 316,393.11
Funds
30,889.85
Funds 25,494.38
Debentures
386,057.90
Debentures 345,299.16
Total
808,974.15
Total 687,186.65
Data of agency transaction amount
Currency: RMB
During the Reporting Period, the Southbound Trading business went steadily, with the number of clients
increasing steadily and the services continuing to be deepened. For the Southbound Trading business under
Shanghai-Hong Kong Stock Connect, there were 64.3 thousand authorized users in total. For the Southbound
Trading business under Shenzhen-Hong Kong Stock Connect, there were 66.3 thousand authorized users
in total. In terms of stock options brokerage business, the Group has further boost efforts in technology
support, optimized the trading platform system, strengthened online and offline linkage services to improve
the intelligent operation, and therefore the business has continued to maintain its market leading edge.
According to the statistics of the Shanghai Stock Exchange, the Group’s stock option brokerage business at
the Shanghai Stock Exchange ranked the first in the industry in terms of trading volume and market share
during the Reporting Period.
For the futures brokerage business, Huatai Futures continued to optimize its outlet layout. As of the end of the
Reporting Period, there were 9 branches and 41 futures branches in total covering 4 municipalities directly
CAGR
+19.14%
CAGR
+29.96%
Total assets of client accounts
14.27
2.46
20.57
3.35
34.19
4.74
42.29
5.40
12.41
45.16
24.52
19.01
2021 2021
2018 2018
2019 2019
2020 2020
2017
2016
2014
2015
50
40
30
20
10
0
6
5
4
3
2
1
0
1 111 1 1 1 1
Equity fund trading volume
Unit: trillion yuan Currency: RMB Unit: trillion yuan Currency: RMB
Source: Regular reports of the Company Source: Regular reports of the CompanyTrading volume
Market
ranking
AUM
HUATAI SECURITIES
048
(2) Financial product sales and fund investment advisory business
During the Reporting Period, the Group promoted the business development of financial products centered
on customer needs from multiple angles. Through the professional and digital large-scale asset research
system, strategy research and development system, product research and evaluation system, product and
fund investment advisory service system and based on the comprehensive platform-based operation, the
Group provided customers with strategic portfolios and financial products that meet their risk and return
needs, and met customers’ multi-level wealth management needs. The Group actively integrated internal
and external resources, strengthened the layered and hierarchical customer service model and formed
multi-level investment solutions with fund investment advisory, private fund portfolio and product selection
as subjects covering public and private fund portfolios and products to meet the investment demands of
different customer groups. According to internal statistics, the number of financial products held (except
for the cash management product “Tian Tian Fa”
( 天 天 發 ))
was 7,181, and their sales scale (except for the
cash management product “Tian Tian Fa”
( 天 天 發 ))
was RMB759.418 billion, which has increased steadily.
According to the statistics from the Asset Management Association of China
( 中國證券投資基金業協會 )
as
of the fourth quarter of 2021, the Group’s shares and hybrid public funds maintained a scale of RMB85,000
million, and the public funds in the non-money market maintained a scale of RMB93,200 million, both
ranking the second in the industry.
During the Reporting Period, in terms of fund investment advisory business, the Group strengthened and
improved the strategic investment and research system, operation promotion system, service system and
related system platforms, continuously optimized customer service scenarios and customer service plans,
built life-cycle companion service systems for customers and continuously improved customer coverage
and satisfaction through continuous customers operations. It also continued to improve the strategic
investment and research infrastructure, built a buy-side investment and research system integrating asset
research, allocation research and fund research, optimized and diversified strategy portfolio models. The
Group strengthened the construction of a digitized empowerment platform, adopted the agile development
model and actively built a strategy and product investment and research system to achieve the full
coverage of customer and product services and effectively improve the overall business efficiency and
capability. The Group promoted the comprehensive operation of the fund investment advisory business and
the revenue from the fund investment advisory business increased rapidly. As of the end of the Reporting
Period, according to internal statistics, the fund investment advisory business authorized assets amounted
to RMB19.511 billion and the number of customers was 722,100.
under the Central Government and 16 provinces in China, being the agent of 91 types of futures. During
the Reporting Period, Huatai Futures (excluding clearing members) realized an agency trading volume of
730.4848 million lots with a transaction amount of RMB67,951,422 million. The Group’s futures IB business
increased consistently, with 230 securities branches permitted to be engaged in futures IB business and the
total number of futures IB business customers reaching 55,547 as of the end of the Reporting Period.
(3) Capital-based intermediary business
During the Reporting Period, the Group adhered
to the customer-oriented operation philosophy,
responded to customers’ feedbacks in a timely
manner, continuously diversified marketing and
service models, built a matrix customer service
system, enhanced differentiated and professional
service capabilities, and constantly improved
the risk management and control system to
consolidate business competition advantage.
Relying on the cooperation and linkage across the
entire business chain, it led digital transformation
through platform construction, continuously
enhanced the securities lending business operation
and management capability, consolidated the
671.25
1,241.23
435.15
588.13
551.43
661.14
2019
2020
2021
2018
2017
2016
2015
1,500
1,200
900
600
300
0
8%
6%
4%
2%
0%
5.63%
5.63%
5.87%
5.87%
5.73%
5.73%
5.76%
5.76%
6.59%
6.59%
7.6 7%
7.6 7%
7.52 %
7. 52%
1,376.99
1,376.99
CAGR
+13.01%
Scale of margin financing and securities lending business
Source: Regular reports of the Company
Balance Market share
Unit: 100 million yuan Currency: RMB
049
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foundation for the development of securities sources, expanded the scale of the securities pools, constantly
improved customers’ service experience and achieved business extension and empowerment with the
securities lending business as the trigger. The Group released the “Securities Lending Path 3.0” (
融券通
3.0),
further advanced the construction of the open platform for securities lending, integrated various customer
terminals such as “Xing Zhi” and “Wind” and continuously optimized the new model of digital operation of
the securities lending industry. During the Reporting Period, the capital-based intermediary business of
the Group showed good development momentum, the scale of margin financing and securities lending
business increased steadily. The market share continued to increase, the securities lending business
maintained the sound development momentum, and the stock pledged repurchase business structure was
optimized to make business risks controllable. According to the regulatory statement data, as of the end
of the Reporting Period, the balance of margin financing and securities lending business of the Company
was RMB137.699 billion, with a year-on-year increase of 10.94% and a market share of 7.52%, and the integral
maintenance guarantee ratio was 312.02%. Among them, the balance of securities lending business
was RMB24.705 billion, with a market share of 20.56%. The pending repurchase balance of stock pledged
repurchase business was RMB43.899 billion in total, with an average fulfillment guarantee ratio of 302.99%.
Among them, the pending repurchase balance of on-balance-sheet business was RMB5.990 billion, with an
average fulfillment guarantee ratio of 311.68%; while the pending repurchase balance of off-balance-sheet
business was RMB37.909 billion.
3. Prospect of wealth management business for 2022
Wealth management business carries the strategic functions of the Group to gather and accumulate
customer resources and assets on a large scale. In 2022, the Group will continue to seize the strategic
opportunities for the in-depth development of the wealth management market, rely on the dual-end
platform and ecosystem operation for customers and investment advisors, further expand the size of
customers and customers’ assets through the integrated operation driven by the headquarters with the
coordination of the headquarters and branches, promote its transformation into a full life cycle service and
asset allocation service model for customers and continue to build new competitive edges for the future.
For wealth management business, the Group will continue to implement the philosophy of technology
empowerment and platform-based operation, increase investment on technology and contents and
promote high-quality business development with the refined, differentiated and intelligent operation and
professional online and offline synergy. It will continue to focus on operation as the core, maintain the
business idea of “gathering traffic with contents, accumulating traffic with private traffic and magnifying
traffic with operation”, build the traffic ecosystem with an open thinking, improve the operation efficiency
with platform empowerment and consolidate the competitive advantages with the improvement of staff
performance through professional division of work. The Group will continue to optimize the classified and
378.14
314.56
438.99
539.04
908.75
690.26
389.28
2015 2015
2016 2016
2017 2017
2018 2018
2021
2020
20192019
2020
2021
1,000
800
600
400
200
0
400%
350%
300%
250%
200%
370.33%
245.28%
237.95%
231.67%
267.70 %
287.4 6%
302.99%
302.99%
272.82%
272.82%
337.76 %
337.76 %
304.35%
304.35%
339.23%
339.23%
314.66%
314.66%
302.93%
312.02%
Scale of stock pledged repurchase business
Overall guarantee ratio and average fulfilment
guarantee ratio
Unit: 100 million yuan Currency: RMB
Source: Regular reports of the Company
Pending repurchase balance
Source: Regular reports of the Company
Overall guarantee ratio of margin financing and securities lending business
Average fulfilment guarantee ratio of stock pledged repurchase business
HUATAI SECURITIES
050
hierarchical service system on investment advisory, optimize outstanding investment advisory service
models and build professional and three-dimensional investment advisory teams through platform
empowerment to comprehensively improve the efficiency of investment advisory services. It will deepen
digital development strategies, fully upgrade the service capability of the “personalized” “ZhangLe Fortune
Path” (
漲樂財富通
) platform and consolidate and optimize the capability on the operation of the “AORTA”
(
聊
TA) platform to build the refined, digital and systematic operation system and continuously enhance
customer stickiness and satisfaction.
For the financial product sales business, the Group will consistently enrich the classified and hierarchical
product supply and services, iterate and optimize the investment and research model, upgrade the large-
scale asset rating framework and enhance the response to diversified customer demands and operation
capacity to support the continuous growth in the customer scale and asset. It will step up efforts in the
operation and marketing of the fund investment advisory business, continue to diversify strategic portfolios,
practically enhance the product research and investment capabilities and actively explore internal and
external customer groups to continuously optimize operation and service systems and enhance the profit
experience of customers.
For the capital-based intermediary business, the Group will continue to be customer-oriented, continuously
strengthen the construction of the marketing service system to improve the efficiency of business operation.
It will focus on differentiated competitions on the ability to obtain sources of securities, the customer service
capability and the application of Fintech to further improve the quality of business development. We will put
more efforts in providing resources, improve the digital operation platform, deepen the cooperation across
the business chain, continue to promote the iteration and upgrading of the “Securities Lending Path”
(
融券通
) platform and create an integrated securities pool at home and abroad, on and off the market.
We will vigorously build an open and efficient ecosystem in the securities lending industry and continuously
reinforce the brand advantage of the “Securities Lending Path” (
融券通
).
(II) Institutional services business
1. Market environment and industry trend of institutional services business
(1) The transformation and upgrading of real economies and the comprehensive deepening reform of the
capital market have provided greater potentials for the display of integrated advantages of institutional
services business
With the consolidation and expansion of the stable
recovery of China’s economic development, the
supply-side structural reform and the innovation-
driven development strategy are further advanced,
the strategic position of the capital market in
serving the high-quality development of the
economy continues to rise, in which the market
vitality and driving force will be further released,
the institutional service business will have an
opportunity to achieve leap-forward development,
providing institutional clients with a full range of
high-quality comprehensive financial services
will become an important manifestation of the
core competitiveness of securities companies.
Against the background of the promulgation and
implementation of the new Securities Law, the
merger of Shenzhen Stock Exchange’s main board
and SME (small and medium enterprises) board,
the official opening of Beijing Stock Exchange, the
establishment and improvement of the normalized
2020
2021
2019
2018
2017
2016
2015
25,000
20,000
15,000
10,000
5,000
0
Statistics of stock issuance
Unit: 100 million yuan Currency: RMB
Notes:
1. Source: Wind;
2. The statistical coverage includes IPO, additional offering (including
issuance of shares for purchasing assets), share allotment, preferred
shares, convertible bonds and exchangeable bonds;
3. The statistical caliber of Wind is issuance date.
Funds raised from the IPO
Funds raised from preferred shares
Funds raised from additional o
ff
ering
Funds raised from convertible bonds
Funds raised from share allotment
Funds raised from exchangeable bonds
051
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(2) The development trend of institutionalization, increased concentration, and internationalization
of market participants have set higher standards for institutional services business of securities
companies
Institutional investors are becoming the main force in the capital market, with the establishment and
improvement of the multi-tiered capital market, the development and growth of domestic and foreign
professional institutional investors, the marketization operation of domestic social security funds, insurance
funds, and bank wealth management funds, the lowering market entry barriers for foreign capital, the
increased indirect participation of individual investors in securities market investment through financial
products, the development and application of new technologies and the more obvious influence of the
institutional market. Driven by the accelerated transformation and upgrading of China’s macro economy,
the comprehensively and deeply advancing of the reform of the capital market system and the policy
orientation of promoting fund development, the trend of residents’ wealth allocation towards financial
assets is continuously enhanced, the scale of mutual and private funds hit a new high with the market
influence continuously enhanced and the process of institutionalization of the capital market sped up,
which have raised higher requirements on the capabilities of securities companies in providing integrated
and professional financial services. In addition, in the context of the accelerated formation of a new pattern
delisting mechanism, the implementation of the registration system reform and the promotion in the whole
market step by step in recent years, the capital market has initiated a new stage with the full optimization of
fundamental systems and the reform and development for the full restructuring of the market ecosystem,
which presents the increasingly mature market-based issuance and underwriting mechanisms and
the investment banking business of securities companies faces high-level transformation strategic
opportunities, securities companies with outstanding business capabilities, rich project reserves and mature
integrated operation will achieve more progresses in business and income. In the future, with the deepening
of China’s capital market reform and the building of the new pattern of the multi-tiered capital market
with dislocation development and orderly competition, the capital market will fully display the function
of resource allocation and provide financial services to enterprises in different stages of development.
The securities industry will embrace historical development opportunities with the improvement of
the market width and depth. Securities companies with the ability to better capture macroeconomic
trends and development opportunities in the reform of the capital market, improve the comprehensive
service capabilities across the entire business chain in an all-around way, promote the comprehensive
transformation and upgrading of the business system and create long-term value for their clients will face
more business opportunities.
2015 2015
2016 2016
2017 2017
2018 2018
2019 2019
2020 2020
2021 2021
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
15,000
12,000
9,000
6,000
3,000
0
60,000
50,000
40,000
30,000
20,000
10,000
0
500
400
300
200
100
0
Notes:
1. Source: Wind;
2. The statistical coverage includes government bonds, local government bonds,
NCD, financial bonds, enterprise bonds, corporate bonds, mediumterm notes,
short-term financing bonds, dedicated instruments, bonds issued by international
institutions, bonds issued by government-supported agencies, asset-backed
securities, convertible bonds and exchangeable bonds;
3. The statistical caliber of Wind is issuance date.
Notes:
1. Source: Wind;
2. The statistical caliber of Wind is the reorganization transactions of
material assets disclosed by A-share listed companies.
Statistics of bond issuance
Statistics of material assets reorganization of the Company
Unit: 100 million yuan Currency: RMB Unit: 100 million yuan Currency: RMB
Issue amount Transaction amountNumber of issuance Number of transactions
HUATAI SECURITIES
052
of high-level two-way opening of the capital market, the classified supervision of securities companies, the
implementation of the “whitelist” (
白名單
) system and the establishment of aircraft carrier-level securities
companies, superior market resources are speeding up in flowing into superior institutes and the strength
polarization in the industry is increasingly obvious. The provision of comprehensive financial services to
customers based on platform empowerment and efficient integration of onshore and offshore business
resources will be the key in the new round competition on the institutional services business of securities
companies. In the future, large-scale securities companies with advantages in systematic institutional
services, differentiated and international institutional service capacities as well as advantages in institutional
customer base, professional talent team and brand influence will obtain more development opportunities.
(3) The sustainable development of institutional services business of securities companies requires
strong risk management capabilities as the foundation
With the manifestations and transmission channels of financial risks becoming more and more complex
and the risk management being increasingly difficult in recent years, it is key for securities companies to
achieve more steady and sustainable development to improve the comprehensive risk management
structure based on their own development strategies and business development and establish effective
pre-risk control procedures, complete risk management systems and strong cultural systems on risks.
Securities companies must continuously improve risk supervision mechanisms, establish and improve
the risk management system across all business chains, continuously optimize the risk management
system and procedure design and enhance the professionalism and penetration of risk management to
comprehensively improve risk management capabilities, effectively prevent, manage and defuse financial
risks and enhance core competitive advantages. The prevention and management of financial risks requires
securities companies to continuously optimize the organizational structure and operational process of risk
management, continue to improve the professional and platform-based comprehensive risk management
mechanism to achieve centralized monitoring, analysis and full process control of risk information. Defusing
financial risks requires securities companies to effectively utilize the financial derivatives market while
possessing strong capital strength. Based on the continuous improvement in professional capabilities such
as valuation, pricing and trading, securities companies should deepen the coverage and penetration of
professional risk management to the entire business process, enhance the professionalism, perspectiveness
and proactiveness of risk management strategies and control measures and earnestly seize new
opportunities in the high-end development of institutional services business coupled with their unique risk
management service value and differentiated financial product innovation and design capability.
2. Operational measures and achievements of institutional services business
(1) Investment banking business
During the Reporting Period, the Group firmly grasped significant opportunities in deepening the reform
of the capital market and continued to promote the full-service business chain strategy. Adhering to
the customer-oriented operation philosophy and towards the direction of industry focus, regional layout
and customer demand exploration, the Group strengthened domestic and overseas, on-exchange
and OTC cross-market synergy, comprehensively improved the full-range product service ability and
the comprehensive service quick response ability and achieved outstanding results in all sectors of the
investment banking business.
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①
Equity underwriting business
During the Reporting Period, the equity underwriting business maintained platform-based and integrated
operation with high-quality customers as the center, deeply explored regional development, focused on
industries, actively built a business system with the multi-dimensional integration of industries, regions
and products and achieved full results in business deployment. According to the statistics from Wind
Information, the Group’s equity lead underwriting amount (including the initial public offering, follow-on
offering, allotment of shares, preferred shares, convertible bonds, exchangeable bonds) was RMB176.247
billion, ranking the fourth in the industry; and the convertible bonds lead underwriting amount was
RMB47.263 billion, ranking the first in the industry. According to the statistics of stock exchanges, as of the
end of the Reporting Period, the accumulated number of registration-based IPOs in the STAR Market and the
ChiNext of the Group was 109, ranking the third in the industry.
Note: The above data are from the regulatory statements, while the statistical caliber is the issuance completion date of the project; preferred
shares are included in the additional newly issued shares; bonds issuance includes treasury bonds, enterprise bonds, corporate bonds (including
exchangeable bonds), convertible bonds, short-term financing bonds and medium-term notes, etc., but it excludes asset-backed securitization
projects.
Consolidated data
Currency: RMB
Categories of
Issuance
Times of lead
underwriting (time)
Lead underwriting amount
(in RMB10 thousand)
Lead underwriting income
(in RMB10 thousand)
Current
Period
Accumulated
over the years
Current
Period
Accumulated
over the years
Current
Period
Accumulated
over the years
Issue of new
shares
32 227 3,599,489.71 18,470,069.91 192,087.76 883,565.15
Additional
issue of new
shares
35 251 6,016,955.00 40,867,389.22 41,459.62 310,338.30
Allotment of
shares
2 34 495,302.83 2,162,160.55 1,504.49 22,637.37
Issue of bonds 1,766 3,671 60,007,326.06 198,134,436.47 119,532.41 541,398.07
Total 1,835 4,183 70,119,073.60 259,634,056.15 354,584.28 1,757,938.89
2021 2021
2020 2020
2019 2019
2018 2018
2017 2017
2015 2015
2016 2016
100
80
60
40
20
0
2,000
1,500
1,000
500
0
1 3 344 53 33 33 3 3 4
CAGR
+5.09%
1,308.40
1,578.70
1,105.72
1,384.66
1,384.66
1,320.95
1,475.46
1,762.47
86
74
69
39
49
77
98
CAGR
CAGR
+2.20%
+2.20%
Number and ranking of equity underwriting
Amount and ranking of equity underwriting
Notes:
1. Source: Wind;
2. The statistical coverage includes IPO, additional offering (including ancillary financing and placement subscribed with assets), share
allotment, preferred shares, convertible bonds and exchangeable bonds;
3. The statistical caliber of Wind is issuance date, while the statistical caliber of the Company's regulatory reporting is payment date. Therefore,
there are differences
between the data from Wind and the statistical data from the Company.
Number of equity underwriting
Amount of equity underwriting
Market
ranking
Market
ranking
Unit: 100 million yuan Currency: RMB
HUATAI SECURITIES
054
②
Bonds underwriting business
During the Reporting Period, the bonds underwriting business gave full play to its all-license edge and all-
round business advantages of equity-debt linkage, achieving continuous breakthroughs in professional
teams. It actively built benchmark projects and focused on products such as local government bonds
and financial bonds with the number of customer groups further increased, the customer structure further
optimized, the regional market share further expanded, product layout making achievements and the
business scale achieving remarkable growth. According to the statistics from Wind Information, the Group’s
lead-underwriting amount of full variety bonds was RMB931.103 billion, ranking the third in the industry.
Number and ranking of bond underwriting
2021 2021
2020 2020
2019 2019
2018 2018
2017 2017
2015 2015
2016 2016
2,500
2,000
1,500
1,000
500
0
10,000
8,000
6,000
4,000
2,000
0
76 4 3 7 8 7 5 3
CAGR
+50.20%
CAGR
+64.67%
3,356.47
9,311.03
5,669.63
811.08
1,978.24
2,016.00
2,043.40
110
274
329
432
1,086
1,826
2,193
Notes:
1. Source: Wind;
2. The statistical coverage includes local government bonds, policy-bank bonds, non-policy financial bonds (including securities corporate
bonds), enterprise bonds, corporate bonds, medium-term notes, short-term financing bonds (including ultra short-term financing bonds),
dedicated instruments, bonds issued by international institutions, bonds issued by government-supported agencies, asset-backed securities,
convertible bonds, exchangeable bonds and other bonds;
3. The statistical caliber of Wind is issuance date, while the statistical caliber of the Company's regulatory reporting is payment date. Besides, the
statistical coverage of Wind is different from that of regulatory reporting. Therefore, there are differences between the data from Wind and the
statistical data from the Company. For the
calculation method of issuing number, the statistical caliber of Wind is different from that of regulatory reporting.
Number of bond underwriting
Amount and ranking of bond underwriting
Unit: 100 million yuan Currency: RMB
Amount of bond underwriting
Market
ranking
Market
ranking
③
Financial advisory business
During the Reporting Period, in terms of the M&A and restructuring, the financial advisory business seized
the historical opportunity of SOEs reform and focused on capabilities on the identification of high-value
transaction opportunity and deal-making, and vigorously developed customer continuous services, thus
maintaining the leading position of the M&A and restructuring business and continuously expanding the
market share. Based on the public statistics of the CSRC and stock exchanges, the number of M&A and
restructuring projects disclosed and accepted with the Group acting as the independent financial advisor
during the Reporting Period was 16 and 16, respectively, ranking the first in the industry in terms of the
number of reserve M&A and restructuring projects. Nine institutions are registered with and approved by
the CSRC to conduct M&A and restructuring transactions, ranking the third in the industry with a transaction
amount of RMB64.893 billion, ranking the third in the industry.
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④
OTC business
During the Reporting Period, the Group fully displayed the integrated advantage of a large investment
bank, closely followed the businesses on Beijing Stock Exchange and continued to provide technological
innovation-based growth enterprises with complete capital market services. During the Reporting Period,
the Group provided continuous overseeing services for 23 listed companies, completed one public issuance
of stocks and the inclusion in the NEEQ Select as the main underwriter, one acquisition on the NEEQ, one
private issuance of stocks under review and one public issuance of stocks and the listing on Beijing Stock
Exchange under review. Jiangsu Equity Exchange, a holding subsidiary of the Group, continued to improve
compliance and risk control systems, actively innovated debt financing products, expanded financing
service methods and financing channels, deepened digital transformation, adhered to the empowerment
of Fintech, improved the efficiency of the whole business chain, enhanced and upgraded the capability
to provide comprehensive financial services for small, medium and micro enterprises. As of the end of the
Reporting Period, the Group has had 11,376 enterprises listed and displayed, 140 enterprises purely under
custody, 233 membership units, and 77,417 investors of all types, and it raised RMB6.924 billion for enterprises
through financing during the Reporting Period.
(2) Prime brokerage (PB) business
During the Reporting Period, the Group earnestly implemented the service philosophy with customer
operation as the core. Relying on the platform-based and ecological development strategies, the Group
facilitated the digital transformation and the improvement of the operation efficiency, practiced the
customer-oriented full-chain service system, moved forward the development of the prime brokerage (PB)
business in a systematic way centered on the comprehensive financial service needs of the customer’s full
life cycle and actively explored diversified realization. As of the end of the Reporting Period, the Group had
7,819 fund products in custody and the total size of fund in custody reached RMB391.751 billion. We provided
administration services to 9,958 fund products (including 789 products from our asset management
subsidiary), of which the service scale reached RMB997.548 billion (including the business scale of asset
management subsidiary of RMB444.856 billion). According to the statistics from Asset Management
Association of China (
中國證券投資基金業協會
), as of the end of the fourth quarter of 2021, the Group ranked
the fourth in the industry in terms of the number of products filed under the private fund custody business.
Amount, number and ranking of merger, acquisition and reorganization
Currency: RMB
2015 2016 2017 2018 2019 2020
2021
Number 29 21 11 15 14 9
9
Ranking by number
1 1 5 3 1 2 3
Transaction amount (in
RMB100 million)
1,007.31 1,889.53 413.04 1,104.27 1,280.65 504.19
648.93
Ranking by transaction
amount
3 2
4
1 1 2 3
Source: The number, scale and ranking of merger, acquisition and reorganization transactions collected based on public information and approved by the CSRC.
HUATAI SECURITIES
056
(3) Research and institutional sales business
During the Reporting Period, in terms of research business, the Group firmly promoted the transformation
of business models and actively practiced the full business chain to consistently improve business synergy
and efficiency, expand the breadth and depth of research, improve the effectiveness of research service
docking and proactively build the market influence of research brands. It deeply explored the digital
transformation of business and continued to build and establish intelligent research platforms. Supported
by “RIS” and the “Xing Zhi” (
行知
) platform, it facilitated the transformation of business and management
models into digital and platform-based models and constantly improved the business consistency and
working efficiency. Focusing on leading domestic institutional customers, the Group continued to boost
supports to Hong Kong and overseas markets, completed the establishment of the interconnection system
for research products, facilitated the integrated production process of research reports and continuously
built the cross-border research service system. Centering on customers, in terms of the institutional sales
business, the Group classified and concentrated on the demands of key customer groups for financial
services, actively integrated the full-service chain resources and built the customer-driven and product-
driven service matrix for institutional sales and trading. It deeply connected the diversified demands of
institutional investors and continuously promoted the construction, optimization and iteration of the “Xing
Zhi” (
行知
) service platform, institutional customer CRM system and other digital platforms to build an
ecosystem with coordinated development of customers. The Group has actively carried out various forms of
research service activities, including releasing 9,572 research reports, organizing 17,309 research roadshow
services and 764 thematic teleconferences, and holding 19 strategy meetings, summit forums and thematic
meeting online or through the integration of online and offline means. During the Reporting Period, the
volume of sub-position transactions for the public fund was approximately RMB1,431.339 billion.
(4) Investment and trading business
①
Equity trading business
During the Reporting Period, the Group made ongoing efforts to resolutely promote business transformation
to a trading business model, stuck to the de-directionalization, continued to expand the breadth, depth
and intensity of fundamental research on equity, constantly improved investment decision-making and risk
management systems and actively explored diversified trading strategies and means. It continued to speed
up in the expansion of innovative business models, constantly enriched the business structure, focused on
the enhancement and expansion of the performance of business platforms and built equity investment
and trading systems with core competitiveness and sustainable development by relying on platform
307
734
934
1,589
1,897
2,727
2,642
3,465
3,678
5,309
4,444
6,481
7,8 19
9,958
2019
2020
20192020
2021 2021
2018 2018
2017 2017
2016 2016
2015 2015
541.22
9,653.45
733.05
8,490.65
1,311.89
2,458.27
8, 587. 61
9,0 67. 3 3
3, 917.51
9,975.48
4,000
3,000
2,000
1,000
0
10,000
8,000
6,000
4,000
2,000
0
CAGR
+55.98%
CAGR
+7.51%
272.01
272.01
6,458.48
6,458.48
497.21
497.21
9,241.03
9,241.03
Source: Regular reports of the Company Source: Regular reports of the Company
Number of fund custody products and business scale
of fund custody
Number of fund service products and business scale
of fund services
Unit: 100 million yuan Currency: RMB Unit: 100 million yuan Currency: RMB
Amount of custody business Amount of service business
Number Number
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empowerment on business development. It actively built cross-market, multi-tiered, three-dimensional and
diversified business systems based on the interconnected development of platforms and explored the law
of market operation to effectively identify market opportunities and risks and support the trading business.
The Group attached great importance to the research & application of advanced technologies such as
big data and artificial intelligence, actively build integrated business platform and the big data transaction
business system with great varieties, multi cycles and strategies, improved the trading model of macro
hedging transactions, and promoted the improvement of its transaction scale and profitability.
②
FICC trading business
During the Reporting Period, the Group gave full display to the comprehensive and diversified operation
advantages of the FICC business system, achieved multi-dimensional breakthroughs in structural
innovation, layout optimization and target expansion for the product system with customers as the center
and satisfied customers’ demands for asset allocation and risk management in an all-round way. In terms
of fixed-income proprietary investment business, it practiced the management model of hedge fund
portfolios under the de-directionalized rotation of general categories of assets, actively sought excess
absolute gains based on the volatility and maintained steady growth in proprietary investment revenue. As
for bulk commodity business and foreign exchange business, the Group continuously promoted strategic
trading research, constantly improved the functions of agency for foreign exchange trading systems
and actively built core investment trading and pricing capabilities. It was approved to participate in the
“Southbound Trading” business and implemented the first trading as an agent for settlement and sales
of foreign exchange, stably enhancing the business capability. The Group continued to advance the
digital business transformation, constantly optimized the business functions and modules of the HEADS
elephant platform (HEADS
大象平台
), upgraded and built the core capabilities of the CAMS (credit analysis
management system) and enhanced the investment trading and risk management capabilities in a
systematic and platform-based manner. According to statistics from Wind Information, during the Reporting
Period, the delivery volume of bonds of the Group ranked the fourth in the industry.
③
OTC derivatives trading business
During the Reporting Period, the Group strived to build a customer-oriented over-the-counter derivatives
business system. It built the core competitiveness with the building of the core trading capability as the
original business, differentiated advantages with the establishment of systems as supports and the
integrated risk control system with professional risk control as drivers to continuously enhance the capability
on differentiated and innovative product design and strengthen the capabilities on investment trading,
digital operation, facing customer operation and integrated risk control. It achieved the accumulation,
upgrading and transformation of core business capabilities with the platform-based construction, fully
empowered business development and deeply docked institutional service systems and customer
demands. According to the regulatory statement data, as of the end of the Reporting Period, the Group had
6,862 income swap transaction business contracts with an amount of RMB152.609 billion; the Group had 1,753
OTC option trading business contracts with an amount of RMB122.163 billion. During the Reporting Period,
the Group issued 3,879 private placement products through the China Securities Internet System and OTC
market, with a total amount of RMB66.233 billion.
3. Prospect of institutional services business for 2022
In terms of the institutional services business, the Group is devoted to providing industrial and financial
institutional customers with full-business chain services. It is a key strategic sector for the Group to advance
towards high-quality development. In 2022, the Group will continue to classify and focus on key customer
groups’ demands for financial services, continuously promote the systemic service model, consistently
strengthen business synergy mechanisms, implement comprehensive operation of customer value and
build a new model of services for institutional customers based on the platform, product and ecosystem to
achieve mutual empowerment and common growth with customers.
HUATAI SECURITIES
058
For investment banking business, we will focus on key regions and industries, deeply serve leading industrial
customers and enhance the integrated capabilities on coordinated services across the market and
various products. At the same time, we will continue to advance the platform-based business and the
digital transformation, establish the platform-based big system on investment banking with high-quality
customers as the core and build a more efficient and competitive ecosystem on investment banks with the
focus on the lifecycle demands of customers on all business chains. In terms of equity underwriting business,
the Group will continueto grasp the historical opportunities under the capital market reform and the full
implementation of the registration-based IPO system, focus on development in key regions and delve
into the industry. Moreover, the Group will increase the number of high-quality customers and continue to
enhance the integrated capabilities on coordinated services across the market and various products. In
terms of the equity underwriting business, the Group will continue to deeply root in regional development
and rely on the platform-based advantages to consistently improve the marketing development
capabilities; meanwhile, it will continue to pay attention to products and enhance the professional service
capabilities. For the financial advisory business, the Group will further consolidate the service capabilities
on innovative and complicated projects, maintain the market reputation and recognition on the M&A and
restructuring business as the benchmark business and intensify the capabilities on serving SOEs to build
M&A transactions with market influence.
For prime brokerage business, we will rely on the service system covering the full business chain and
Fintech advantages, continue to strengthen customer operation, optimize customer services in a
classified and hierarchical manner, further expand the size of customer groups, constantly promote digital
transformation and build competitive advantages through platform empowerment to provide customers
with comprehensive services and achieve diversified realization of business value.
For research and institutional sales business, we will continue to improve the integrated domestic and
overseas system on institutional customer services, focusing on building the professional team with
comprehensive service ability and steadily promote digital construction and operation to fully expand the
dimension of service contents and the depth of services of the systematic work platform and build all-
dimensional and one-stop financial service ecosystem with the focus on the demands of institutional
investor.
For investment trading business, we will continue to build platform-based and systematic investment and
trading capabilities, practically upgrade to the goal of mastering asset pricing rights and productization of
trading capabilities, actively build future-oriented core competitiveness, and further promote diversification
of profit models. For the equity trading business, the Group will comprehensively upgrade the macro
hedging transaction ability and improve the system of big data strategies. It will deeply develop and
innovate the investment business, comprehensively promote the digital construction and focus on building
a professional equity investment and trading system based on the resources platform and the platform
of IT systems. For FICC trading business, the Group will continue to strengthen the systematic business
construction and development, upgrade and improve the functions of the HEADS elephant platform
(HEADS
大象平台
) and the CAMS (credit analysis management system), continuously advance the digital
transformation of business and continue to enhance the platform-based advantages and trading and
pricing capabilities to promote high-level business transformation. For OTC derivatives trading business,
the Group will leverage on first-mover advantages in business, the advantages in the systems with market
competitiveness and the outstanding capabilities on business innovation, trading hedge, product design
and pricing, risk control and compliance operation to build differentiated competitive advantages through
platform-based operation.
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Source: Asset Management Association of China
Unit: trillion yuan Currency: RMB Unit: %
(III) Investment management business
1. Market environment and industry trend of investment management business
(1) Asset management business systems were increasingly improved and the industry entered into a
new stage with the full implementation of new regulations on asset management
Driven by various factors such as the financial environment, regulatory policies, customer demands, Fintech
and digital transformation and with the increasingly improvement of systems with new regulations on
asset management as the core, the structural reform of the asset management industry in China was
continuously deepened. The public offering transformation of massive collective products was accelerated;
the mutual funds business became new development focus of asset management institutions; the vitality
in product innovation was continuously generated; and the asset management business entered into
a new stage of returning to its original intention of founding, standardizing development, and in-depth
integration. Under the new development pattern of the asset management industry on the tracks of
high-quality development and sustainable development, various asset management institutions should
continuously enhance the active management capability, build differentiated core competitiveness,
actively seek new business development directions and strategic layouts, and continue to build a full-
range, rich and complete product system, and investment strategies with a global perspective. According
to the statistics from Asset Management Association of China (
中國證券投資基金業協會
), as of the end
of the fourth quarter of 2021, the total amount of asset management business of fund management
companies and their subsidiaries, securities
companies, futures companies and private fund
management institutions was approximately
RMB67.87 trillion, among which, the amount of
private asset management business of securities
companies and their subsidiaries was RMB8.24
trillion. For the asset management business of
large comprehensive securities companies, they
will continue to create differentiated investment
management, refined asset pricing and
comprehensive risk management capabilities,
build a professional asset management platform
to integrate high-quality business resources,
and commit to providing customers with multi-
level and comprehensive high-quality investment
products, asset allocation and overall financial
solutions based on the in-depth understanding of
client needs and structural changes as well as the
collaboration of full business chain and integrated
professional advantages.
Scale and year-on-year growth rate of private asset
management business of securities companies and
their subsidiaries
Private asset management business scale
year-on-year grow rate of private asset management business scale
2016
2015
11.89
10.83
8.55
8.24
2017
2018
2019
2020
2021
20
15
10
5
0
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
47. 8 6%
47. 8 6%
-3.98%
-3.98%
-20.85%
-20.85%
-18.94%
-18.94%
-21.05%
-21.05%
-3.63%
-3.63%
16.88
16.88
13.36
13.36
17. 58
17. 58
HUATAI SECURITIES
060
Source: Statistics from PEdata of Zero2IPO Research Source: Statistics from PEdata of Zero2IPO Research
Unit: 100 million yuan Currency: RMB Unit: 100 million yuan Currency: RMBUnit: % Unit: %
(2) China’s equity investment market performed actively on the whole with increasingly advantages
of top companies and overall improved industrial concentration
With the improvement of market infrastructure, the perfection of industrial regulatory systems, the
enhancing of differentiated regulatory mechanisms, the optimization of registration and filing procedures
and the deepening of the digital transformation, China’s equity investment market embraced historical
development opportunities. The market environment for fundraising was continuously improved, the
enthusiasm on the investment market was increasingly enhanced and the market exit channels were
smoother. At the same time, competition for high-quality projects was fierce, and there was increasing
advantages in top tier institutions. Market funds were gathering to top tier institutions, which have strong
professional capabilities and resource integration capabilities, and the ecological pattern in the industry was
further reshaped. According to the statistics from Zero2IPO Research Center private placement department,
in 2021, 6,979 new funds were raised in China’s equity investment market, with a fundraising amount of
RMB2,208.519 billion, representing an increase of 84.47% over 2020; and there were 12,327 investment cases
in China’s equity investment market, with an investment amount of RMB1,422.870 billion, representing an
increase of 60.39% over 2020. In the long run, with the increasingly consolidated trend of economic recovery,
the comprehensive deepening of the reform of the capital market, the gradual improvement of the multi-
level market system, the full optimization of the fundamental market systems and the continuous perfection
of the industrial ecosystem and under the background of the official opening of Beijing Stock Exchange and
the full implementation of the registration-based IPO system in the future in particular, the equity investment
market is playing a fundamental and strategic role in promoting innovative capital, in the formation of an
innovative economy and supporting scientific and technological innovation of enterprises. There is much
room for the growth of equity investment business. But the securities company’s private equity investment
business will leverage advantages in full business chains, rely on professional and three-dimensional
investment management systems and continue to enhance all-round and comprehensive service
capabilities. We will actively create core business competitiveness, thus effectively improving the efficiency
of serving real economy.
The number and amount of fund raising in the equity
investment market in the PRC and the year-on-year
growth rate
The number and amount of investment cases in the
equity investment market in the PRC and the year-on-
year growth rate
2015
2016
20152016
2017 2017
2018 2018
2019 2019
2020 2020
2021 2021
25,000
20,000
15,000
10,000
5,000
0
15,000
12,000
9,000
6,000
3,000
0
100%
80%
60%
40%
20%
0%
-20%
-40%
100%
80%
60%
40%
20%
0%
-20%
-40%
Fund raising amount The amount of investment cases
Year-on-year growth rate of fund raising amount Year-on-year growth rate of the amount of investment cases
74.69%
74.69%
62.59%
62.59%
-6.56%
-6.56%
10,788.06
7,6 30.9 4
22,085.19
8,871.49
14,228.70
-25.55%
-25.55%
84.47%
84.47%
12,111.49
12,111.49
5,254.96
5,254.96
7,4 49 .10
7, 4 49.10
-29.26%
-29.26%
16.26%
16.26%
60.39%
60.39%
Fund
raising
amount
The
amount of
investment
cases
2,970
8,365
2,438
9,124
3,574
10,144
3,637
10,021
2,710
8,234
3,478
7,5 59
6,979
12,327
30.46%
30.46%
-3.79%
-3.79%
7,8 49.4 8
12,444.04
11,972.14
11,972.14
17,888.72
17,888.72
13,712.05
13 ,317.41
-10.93%
-10.93%
41.75%
41.75%
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2. Operational measures and achievements of investment management business
(1) Asset management business of securities companies
During the Reporting Period, under the background of the implementation of new asset management rules
entering a critical period, Huatai Asset Management, a wholly-owned subsidiary of the Group, actively
adapted to regulatory changes, capitalized on the advantage of full-service business chain resources,
focused on building a digital and ecological operation model, continuously improved the integrated asset
management business platform, comprehensively improved investment and research capability, pricing
capabilities and risk control efficiency, vigorously innovated forms of products, business development
and customer service models to provide customers with a full life cycle, comprehensive financial service
solutions for the entire business chain. According to the regulatory statement data, as of the end of the
Reporting Period, the total asset management scale of Huatai Asset Management was RMB518.573 billion.
According to statistics from Wind Information, the issuance scale of enterprises’ ABS (asset-backed
securitization) of Huatai Asset Management during the Reporting Period was RMB167.112 billion, ranking the
third in the industry.
During the Reporting Period, for asset management business of securities companies, we focused on the
overall size and quality of asset management and sped up in transformation towards active management.
The active investment management capability was continuously enhanced and the proportion in the
size of active management was further expanded. Meanwhile, leveraging the product design capabilities
and pricing advantages, we actively built scaled and differentiated product systems covering different
risk-return characteristics. For the collective asset management business, we effectively implemented
transformation under new regulations and completed the transformation of “Tian Tian Fa” (
天天發
) public
fund, a key product. A total of 182 collective asset management plans were under management and
the total management scale was RMB69.618 billion. In respect of the single asset management business,
we accelerated the exploration of net worth entrusted business and continuously promoted business
transformation. A total of 428 single asset management plans were under management and the total
management scale was RMB180.456 billion. In respect of specialized asset management business, we
launched various ABS projects on carbon neutrality to contribute to the construction of the low-carbon and
energy-saving ecosystem. A total of 179 specialized asset management plans were under management
and the total management scale was RMB194.782 billion. In respect of the public fund management
business, we actively created net-value wealth management solutions for investors with different liquidity
needs and managed 23 public fund products in total with aggregated management scale of RMB73.717
billion.
The table below sets forth the scale and income of the securities companies’ asset management business:
Currency: RMB
Item
2021
2020
Entrusted scale
(in RMB100 million)
Net income
(in RMB10 thousand)
Entrusted scale
(in RMB100 million)
Net income
(in RMB10 thousand)
Collective asset
management
business
696.18 147,568.17
1,324.84 153,409.49
Single asset
management
business
1,804.56 28,200.79
3,087.13 34,960.34
Specialized asset
management
business
1,947.82 12,211.97
1,262.86 9,839.69
Public fund
management
business
737.17 13,546.34
240.71 13,327.56
Note: The above data are from the regulatory statements.
HUATAI SECURITIES
062
(2) Private equity fund management business
During the Reporting Period, for the private equity fund management business, the Group continuously
optimized the business structure system, continued to strengthen industrial research, strengthened the in-
depth layout of key areas and gave full play to the advantages of the Group as a large platform, so as to
continuously enhance professional investment management capabilities. Meanwhile, it actively promoted
the raising of new funds, maintained the partnership with investment institutions on funds, consistently
explored high-quality projects in the industry and
continuously accumulated project reserves for the
investment business. As of the end of the Reporting
Period, Huatai Purple Gold Investment and its
secondary subsidiaries as managers have filed a
total of 22 private equity investment funds with the
Asset Management Association of China (
中國證券
投資基金業協會
), with a total subscription amount
of RMB50.845 billion and a total paid-up capital of
RMB41.774 billion. During the Reporting Period, the
above-mentioned private equity investment funds
implemented a total of 36 investment projects with
a total investment amount of RMB1,161,568,400, all of
which were equity investment projects. According
to the statistics of the Asset Management
Association of China (
中國證券投資基金業協會
), as
of the fourth quarter of 2021, Huatai Purple Gold
Investment ranked the third in the industry in terms
of average monthly scale of private equity.
2021 2021
2019 2019
2020 2020
2018 2018
2017 2017
2015 2015
2016 2016
150
120
90
60
30
0
2,000
1,500
1,000
500
0
3 63 32 35 43 24 43 3
10
105.67
25
248.55
37
463.52
40
638.58
73
84
931.72
137
1,671.12
CAGR
+54.69%
CAGR
+58.43%
908.91
908.91
Issuing number and ranking of enterprise ABS
(asset-backed securities)
Issuing scale and ranking of enterprise ABS (asset-backed
securities)
Source: Wind Source: Wind
Number of issuance Issuing scale
Unit: 100 million yuan Currency: RMB
Ranking
by number
Ranking
by scale
2021
2018
2019
2020
2017
2016
60
50
40
30
20
10
0
49.20
56.58
26.46
23.52
28.17
11.62
33
64
40
36
32
59
Number and amount of investment programs with
private equity investment funds
Source: Regular reports of the Company
Amount of investment programs
Number
Unit: 100 million yuan Currency: RMB
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(3) Asset management business of fund companies
During the Reporting Period, with adherence to equal emphasis on compliance management and business
development, fund companies under the Group continuously stepped up efforts on product research and
business innovation, optimized and adjusted the layout of product lines, intensified business linkage and
focused on improving the construction of intelligent systems. The market recognition and reputation and
the business competitiveness were increasingly improved, the size of assets under management expanded
rapidly and the investment performance generally remained stable. As for asset management business
of China Southern Asset Management, as of the end of the Reporting Period, the total assets managed
by China Southern Asset Management amounted to RMB1,580.245 billion. Among which, China Southern
Asset Management managed a total of 274 funds in its mutual funds business, the total asset size of which
amounted to RMB1,056.395 billion, and the total asset size of private funds business amounted to RMB523.850
billion. As for asset management by Huatai-PineBridge, as of the end of the Reporting Period, the total assets
managed by Huatai-PineBridge amounted to RMB258.251 billion. Specifically, Huatai-PineBridge managed a
total of 103 funds in its mutual funds business, the total asset size of which amounted to RMB244.387 billion,
and the total asset size of private funds business amounted to RMB13.864 billion. (The profit or loss from
equity investments of China Southern Asset Management and Huatai-PineBridge were included under other
segments in the segment report)
(4) Asset management business of futures companies
During the Reporting Period, Huatai Futures, a holding subsidiary of the Group, constantly intensified
the integration of internal resources and business collaboration and continued to advance the digital
transformation, so as to continuously improve its professional services, intelligent management and
business innovation capability, and establish a complete customer service system on asset management.
It was devoted to providing high-quality products and full-process service experiences and meeting the
differentiated risk appetites and asset allocation demands of customers. As of the end of the Reporting
Period, Huatai Futures managed a total of 20 asset management plans which were in the duration period.
The total asset management scale was RMB2,749,983,700, and the futures equity scale was RMB479,648,900.
(5) Alternative investment business
The Group carried out alternative investment business through its wholly-owned subsidiary Huatai
Innovative Investment. During the Reporting Period, Huatai Innovative Investment continued to improve
its internal management system and mechanism, focused on Fintech equity investment and the co-
investment business of the STAR Market, and steadily explored the co-investment business of the ChiNext
and the strategic placement business of the NEEQ according to regulatory requirements and business
layout. As of the end of the Reporting Period, there were 51 subsisting investment projects with an investment
scale of RMB2,273.6210 million. The investment attributes mainly include co-investment on the STAR Market
and equity investment.
3. Prospect of investment management business for 2022
The investment management business plays the dual strategic roles of asset manager and asset services
supplier. It is an important area for the Group’s financial product innovation and client asset management.
In 2022, the Group will continue to display professional capabilities in asset discovery, risk pricing and
product creation, fully leverage resources advantages in full business chains, and actively build scaled and
featured financial product system with full varieties to meet the differentiated demands of customers. It
will build a first-class investment management platform to continuously reinforce its leading position in the
industry.
The asset management business of securities companies will continue to rely on the resources of the
entire business chain, focus on technological empowerment, and allow digital transformation to drive
the reshaping of the business system and the management processes. The Group will improve the risk
control system covering full business chains, continuously optimize the business layout based on strategic
orientations and build professional, industrial and systematic investment research capabilities led by
HUATAI SECURITIES
064
investment research. It will vigorously expand internal and external channels, improve the customer
hierarchical and grading service system, consistently optimize the product management mechanism
and enrich the diversified product system to continuously consolidate the market influence and brand
recognition.
In respect of private equity fund management business, the Group will rely on its good management
capability and historical results, actively maintain the partnership with large SOEs, local government
platforms, banking, insurance and other institutions on funds and increasingly expand the size of fund
management. It will seize the opportunities under the comprehensive deepening reform of the capital
market, continue to focus on advantageous business sectors, deepen industrial research, actively explore
high-quality projects in the industry and build the ecosystem of key industries to further consolidate the
industry influence on key sectors.
In respect of the asset management business of fund companies, we will continue to improve the
compliance management and control system and talent team building, constantly advance the digital
and intelligent transformation to lead business development and management reform, and strive to
enhance investment research professional capabilities. We will continue to maintain the exploration of
new businesses and the development of new products, build multi-layered, distinctive and differentiated
product lines and continuously optimize the business structure to practically enhance our overall asset
management scale and investment performance.
In respect of the asset management business of futures companies, we will implement the full business
chain development strategies, proactively integrate internal and external investment research resources,
improve the decision-making and management mechanism on investment and enhance the research
and judgment capabilities on strategic iteration to continuously improve product management and risk
management and control capabilities and promote the transformation, innovation and development of
business models by relying on Fintech innovation and platform empowerment.
In respect of alternative investment business, we will constantly improve investment management and
business development model, speed up in the construction of the Fintech ecosystem, and prudently
promote the development of equity investment, the co-investment of the STAR Market, and other new
businesses, effectively prevent and mitigate various risks and steadily improve capital usage efficiency and
return on assets.
(IV) International business
1. Market environment and industry trend of international business
(1) The in-depth development of the institutional opening up of the capital market accelerated the
internationalization of securities industry, and clients’ demand for cross-border services promoted the
international service capabilities of securities companies
Against the background of continuously advancing the high-level two-way institutional opening of the
capital market in China in recent years, the two-way investment mechanism on cross-border securities
in the capital market is increasingly optimized. The interconnection of onshore and offshore markets is
effectively expanded and the two-way opening product systems in the capital market are continuously
improved. The channels for overseas listing of domestic enterprises are constantly expanded and cross-
border businesses are more diversified. The capital market had the new value proposition of being a
platform connecting onshore and offshore financial and industrial resources and building a hub with dual-
cycle systems. The securities industry ushered in historic and major development opportunities and the
internationalization of securities companies will also further advance. Currently, as clients’ demands for
cross-border integrated financial services are growing, and global asset allocation continues to increase,
international business has become a front field for large securities companies to expand development
space, increase new profit growth points and promote business structure upgrading. Securities companies
should actively seize the strategic opportunities in increasingly deepening the two-way opening of the
capital market, firmly implement cross-border integrated operation management across all business
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chains, highlight the building of the virtuous cycle mechanism on domestic and overseas resources,
continue to deepen cross-border business cooperation and collaboration and increasingly enhance the
international operation and management capabilities to better provide domestic and global customers
with all-dimensional and one-stop international resources allocation and investment and financing
resolutions.
(2) Good growth momentum of the independent channel of the US wealth management industry is
favorable for the long-term development of the TAMP market
From the perspective of the overall industry development, the current wealth management industry in the US
mainly consists of the “independent” channel (registered investment advisors, hybrid and the independent
broker-dealers, insurance broker-dealers etc.) and the “traditional” channel (national and regional broker-
dealers, bank broker-dealers and wirehouse advisors, etc.). In the wealth management industry, the
market share of the “independent” channel grows faster than that of the “traditional” channel and such
trend sustains. According to the statistics of Cerulli, the market size of independent channels is expected
to increase from USD10.8 trillion to USD14.4 trillion from 2020 to 2025 and the market share will expand from
42% to 47%. According to the statistics of PriceMetrix, 75% of the investment advisors’ revenue came from
management fees in 2020, which was a record level relative to commissions and the transformation of the
charging model from commissions to management fees was continuously promoted. From the perspective
of business development trends, the funds from investors are being transferred to investment products
with lower costs and fees. The TAMP industry can keep empowering and fueling the wealth management
business through leading Fintech development, which can bring the cost advantage of scale to customers
and help them grasp booming development opportunities. According to the statistics of Cerulli, from 2015 to
2020, the compound annual growth rate of the TAMP market was 15.6%, which was significantly higher than
that of the overall investment advisory market, which was 9.3% for the same period.
2. Operational measures and achievements of international busines
During the Reporting Period, as the Group’s holding platform for international business, Huatai International
was fully integrated into the full business chain system of the Group. It deeply promoted the construction
of cross-border comprehensive financial service platform, so as to consolidate the intermediary business
capability in the capital market through cross-border linkage, business collaboration, intensified risk
control and platform-based operation, maintaining outstanding performance growth and continuously
enhancing the influence in overseas markets. As of the end of the Reporting Period, total asset size of Huatai
International reached nearly HK$200 billion, ranking it among the leading Chinese-funded securities firms in
Hong Kong with its comprehensive strength continuing to improve.
(1) Business in Hong Kong
The Group’s business in Hong Kong adhered to the original business of the brokerage firm, with cross-border
business as the starting point, built an all-dimensional and comprehensive cross-border financial service
platform and seized strategic development opportunities under global uncertainties, achieving leapfrog
growth in performance. During the Reporting Period, the business platform systems including the equity
business platform, fixed-income business platform, individual financial platform, fund platform and flagship
investment banking business continued to deepen with outstanding differentiated competitive advantages.
For the equity derivatives business, the Group has utilized the advantages of the Group platform to
continuously enhance the allocation of bulk assets, bulk commodity trading and the interconnection among
securities pools at home and abroad, on and off the market; for the stock sales and transactions business,
the Group continued to advance the construction of prime brokerage platforms and provided domestic
and overseas institutional investors with one-stop and comprehensive cross-border financial services on
“Spot bonds + Synthetic PB + QFII” with various operational indicator ranking high in the market; for FICC
business, the Group sped up in the construction of digital platforms, optimized cross-border business
models, undertook diversified customer demands and achieved the coverage of all FICC categories. At the
same time, it actively hedged risk exposure and effectively resisted market fluctuations; for retail and online
financial businesses, the Group has continuously optimized the functions and operating capability of the
“ZhangLe Global” (
漲樂全球通
) platform, focused on high-quality customer acquisition, diversifying traffic
HUATAI SECURITIES
066
attraction and enhancing conversion to fully transform towards customer operation and asset allocation;
for the private wealth management business, the Group has upgraded product functions, trading systems,
account management and other modules in all dimensions and continuously improved the platform-
based private banking system to provide comprehensive financial services throughout the life cycle; for
the fund business, the Group has continued to enhance the active management capability and promote
full-process management on “fundraising, investment, management and sales” to build reputation and
influence in the industry; in respect of asset management business, the Group actively mastered changes in
customer demands, focused on smoothening business chains on cross-border investment and constantly
diversified product categories, significantly improving the business breadth and depth; for the investment
banking business, the Group paid attention to the changes in customer demands, focused on big health,
property management and big consumption industries, actively provided domestic and overseas equity
and bond services and built a customer-centric and comprehensive cross-border investment banking
platform. It sponsored six IPOs in the Hong Kong stock market, ranking top 5 among Chinese securities
companies in Hong Kong.
During the Reporting Period, the Group’s business in Hong Kong maintained healthy and balanced business
development. As for securities trading, Huatai Financial Holdings (Hong Kong) achieved the total assets
under custody of HK$72.076 billion and the total stocks trading volume of HK$328.447 billion; as for advising
on securities, it provided research reports and advisory services for customers; as for advising on corporate
finance, it participated in 23 listing and placing projects and 79 bond issue projects with the total amount
of trading and issuance of about HK$26.377 billion; as for financing for securities deposits, the accumulated
credit amount was HK$1.826 billion. Besides, during the Reporting Period, Huatai Financial Holdings (Hong
Kong) also completed 10 financial advisory projects. In December 2021, Huatai Financial Holdings (Hong
Kong) officially became a member of Turquoise under the LSE Group, making it a securities company with
the largest asset scale in Asia with dual memberships of the LSE and Turquoise and further consolidating its
capabilities on international development and participating in mainstream international capital markets.
(2) AssetMark
AssetMark’s mission is to make a difference in the
lives of independent investment advisors and the
investors they serve. The highlights of AssetMark’s
core business include a fully integrated platform
with compelling technology, personalised and
scalable services and curated investment function.
Such clear business strategies guided AssetMark
to define its short-term and long-term goals.
AssetMark designs and aligns its strategies to
things that matter most to advisors and that
differentiate it in the TAMP marketplace. According
to Cerulli Associates and other public information,
as of the end of the third quarter of 2021,
AssetMark’s market share in the US TAMP industry
was 11.1%, ranking the third in the industry.
During the Reporting Period, AssetMark maintained stable growth in the size of asset management through
leading business models and advanced technology platforms, continuously consolidating its leading
position in the industry and constantly increasing the business revenue. As of the end of the Reporting Period,
the total platform assets of AssetMark reached USD93.488 billion, representing an increase of approximately
25.45% from the end of 2020; the AssetMark platform served an aggregate of 8,649 independent investment
advisors, of whom, 2,858 active investment advisors manage assets of more than USD5 million, representing
an increase of approximately 12.70% from the end of 2020; the total investor households served by the
AssetMark platform reached nearly 210,000, representing an increase of approximately 12.30% from the
end of 2020. During the Reporting Period, 811 investment advisors signed new contracts with AssetMark. In
addition, AssetMark completed the acquisition of Voyant, a Fintech company, in July 2021, further enhancing
its technological strength in the segment
.
2021
2018
2019
2020
2017
2016
1,000
800
600
400
200
0
322.51
424
448.55
616.08
745.20
934.88
CAGR
+23.72%
Assets on Platform (AoP) of AssetMark
Source: Regular reports of the Company
AoP
Unit: US$100 million
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(3) Huatai Securities (USA)
With the US broker-dealer license approved by the Financial Industry Regulatory Authority, Huatai Securities
(USA) was eligible to conduct broker-dealer business in the US in 2019, including securities underwriting,
securities brokerage for institutional investors, M&A and financial advisory, etc. It obtained qualification for
proprietary trading in 2020 and obtained the business qualification for securities trading with institutional
investors in Canada in 2021. During the Reporting Period, Huatai Securities (USA) continued to improve
its system and platform construction and introduce US institutional investors, actively promoted the
underwriting of equity securities, global equity distribution and the development of the cross-border equity
trading business. The cross-border linkage and coordination mechanism of U.S. domestic businesses and
Hong Kong businesses has been continuously optimized, the cross-border equity trading business has
been continuously expanded and the overall trading volume of stocks by customers has been effectively
improved. During the Reporting Period, Huatai Securities (USA) completed a total of 2 IPO projects in the US
stock market.
3. Prospect of international business for 2022
International business is a bridge for the Group to build an onshore and offshore integrated platform as
well as a new engine for the high-level development and profit creation of the Group. In 2022, the Group
will continue to deepen the cross-border integrated management mechanism, constantly strengthen the
effective linkage of teams, platforms and resources and focus on developing the cross-market capital
service ability to provide customers with onshore and offshore integrated comprehensive financial services
and fully improve the competitiveness and influence of the international business.
Huatai International will rely on the advantages on scale effect, enhance the resource integration function of
the international business holding platform, strengthen business collaboration, deeply root in the customer-
oriented integrated and platform-based cross-border service ecosystem, diversify product chains and full-
process customer services, strengthen the pre-risk management and control capability and actively build
the high-quality and comprehensive cross-border platform system.
For the business in Hong Kong, the Group will continue to focus on customer needs, consolidate the
intermediary positioning of the cross-border capital market and provide customers with one-stop financial
services through implementing business strategies such as domestic and overseas integration, equity and
debt integration, complementation of institutional business and retail business, and first-level and second-
Investment Solutions
Technology Platform
Compliance Support
Adviser Service
Custody
Thoroughly vetted sets of solutions
from leading third-party asset
managers, strategists and in-house
investment management team
provides optionality, streamlines
work and maximizes advisers’ time
with their clients
Compelling and fully integrated
platform designed to reduce costs
and streamline processes while
supporting the adviser and investor
lifecycle
AssetMark provides advisers with
compliance support through
portfolio monitoring and risk
profiling tools that help mitigate risk
Highly tenured sales, service and
operations professionals support
advisers across their business
Open architecture custodial
platform provides flexibility
AssetMark
Service Platform
HUATAI SECURITIES
068
level linkage. For equity derivatives business, it will continue to improve the business capabilities, strengthen
the levels of customer services in all dimensions and expand profit channels; for stock sales and trading
business, while focusing on leading customer groups, the Group will expand the coverage of foreign-funded
institutions, constantly tap into the depth of products and continue to promote the construction of cross-
border prime brokerage platforms to form a virtuous cycle system on securities pools, traffic attraction and
customer acquisition; for FICC business, the Group will rely on platforms to promote scaled, systematic and
digital operation, enhance cross-border linkage, first-level and second-level linkage and the exploration
in asset innovation and provide customers with one-stop cross-border FICC business services; for retail
and online financial business, the Group will deepen the intelligent service function of “ZhangLe Global” (
漲
樂全球通
), perfect distinctive financial products and improve the efficiency in customer development; for
private wealth management business, it will focus on customer services, strengthen platform-based service
and product systems, highlight customer portrait and expand the coverage of customer groups; for fund
business, it will improve the fund platform management capability, continuously promote first-level and
second-level linkage and the “investment linkage” (
投投聯動
) and leverage on the resources advantage
across the full industrial chain to improve the management scale and brand recognition; for the asset
management business, it will continue to focus on cross-border linkage, interdisciplinary collaboration and
the development of new products to intensify and strengthen the comprehensive business capabilities; for
investment banking business, the Group will deepen the strategy of advancing IPO, re-financing and M&As
in parallel, deeply explore leading domestic enterprises and new economy industries and actively strive for
star projects.
AssetMark will continue to hold onto the core business highlights, build an integrated technology platform,
improve customizable and scaled services, and strengthen advanced investment management
capabilities. AssetMark will continue to deepen cooperation with the existing investment advisors, and will
at the same time also focus on customers’ needs, provide differentiated services and assist customer
growth to further expand the investment consulting customer base. It will establish programs on financial
health, actively explore empowering investment advisory with cutting-edge technology and provide in-
depth services to meet the changing demands of customers. It will vigorously expand customer channels
and devote to improving the operation efficiency and reducing operational risks through promoting scale-
based business and the practice of the listed company in performing social responsibilities. In addition,
AssetMark will continue to focus on high-quality strategic M&A opportunities to promote extensive growth.
Huatai Securities (USA) will continue to improve the team building, maintain the business relationship with
US institutional investors, strengthen the linkage and collaboration with domestic and Hong Kong business
teams, actively expand the categories of products and businesses, increase FICC business lines, effectively
balance compliance and risk management requirements and provide all-dimensional services to meet
customers’ demands for asset allocation.
(V) Business innovation and its effects on the Company’s business performance,
future development and risk control
During the Reporting Period, the Company constantly carried out business innovation activities, promoted
the innovation of new businesses, new products, services and management modes, and constantly
improved its innovation ability. The development of innovative business is a supplement to the existing
product lines and business scope, which can effectively release business space, expand client resources
and revenue sources, enhance profitability, as well as improve customer structure and business model,
meet customers’ full and diversified business needs, and further enhance brand influence.
During the Reporting Period, the Company continued to improve the risk management mechanism on new
businesses and enhanced risk assessment on new businesses to guarantee that the risks on new businesses
are measurable, controllable and bearable. The Company actively participated in investment and trading
businesses of new publicly offered REITs products and provided liquidity market-making services for
such products. According to risk characteristics of specific business, the Company has developed and
established a risk control mechanism that covers placing, market making and relevant over-the-counter
derivatives business of publicly offered REITs and includes measures on concentration control, risk exposure
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ANNUAL REPORT 2021
control and target management for publicly offered REITs, to support steady business development.
During the Reporting Period, the Company obtained the market making qualification on certain commodity
futures on Dalian Commodity Exchange and Shanghai Futures Exchange and actively participated in market
making on commodity futures and provided liquidity services for commodity futures. The Company further
improved the establishment of ancillary systems on market making and the management and control
mechanism covering risk exposure and business scale and included new categories into the management
system to ensure that all businesses could be carried out constantly and steadily on the premise that
related risks are measurable, controllable and bearable.
As of December 31, 2021, on a consolidated basis, total assets of the Group amounted to RMB806.651 billion,
representing a year-on-year increase of 12.54%; total equity attributable to shareholders of the Company
amounted to RMB148.423 billion, representing a year-on-year increase of 14.99%; total revenue and other
income amounted to RMB51.926 billion, representing a year-on-year increase of 28.10%; and profit for the
year attributable to shareholders of the Company amounted to RMB13.346 billion, representing a year-on-
year increase of 23.32%.
(VI) There were no significant changes in the Company’s operation status during
the Reporting Period and there were no matters that had or expected to have
significant influence in the future on the Company’s operation during the Reporting
Period
II. MAJOR OPERATIONS DURING THE REPORTING PERIOD
1. Analysis table of the changes in relevant items of the income statement and the cash flow statement
(I) Main businesses analysis
Unit: Thousand Yuan Currency: RMB
Item
Amount for
the current
period
Amount for
the same period
of last year
Change
percentage (%)
Total revenue and other income
51,926,404
40,534,436 28.10
Total expenses
(38,283,823)
(31,233,707) N/A
Profit before income tax
16,272,562
13,504,376 20.50
Profit for the year attributable to the
shareholders of the Company
13,346,106
10,822,497 23.32
Net cash used in operating activities
(65,337,094)
(13,868,924) N/A
Net cash used in investing activities
(262,042)
(13,451,545) N/A
Net cash generated from financing
activities
44,205,373
26,850,070 64.64
Net decrease in cash and cash
equivalents
(21,365,763)
(470,399) N/A
HUATAI SECURITIES
70
2. Income and other gains
As of December 31, 2021, the Group recorded income and other gains of RMB51,926 million, representing a
year-on-year increase of 28.10%, in which:
(1) Fee and commission income recorded a year-on-year increase of 20.95% to RMB22,325 million,
accounting for 42.99%, mainly due to the increase in charges income from securities and futures brokerage
business and underwriting and sponsorship business.
(2) Interest income recorded a year-on-year increase of 34.45% to RMB14,741 million, accounting for 28.39%,
mainly due to the increase in the Group’s income from margin financing and securities lending business.
(3) Net investment gains recorded a year-on-year increase of 10.94% to RMB11,271 million, accounting for
21.71%, mainly due to the increase in revenue from the Group’s investment business.
(4) Other income and gains recorded a year-on-year increase of 276.50% to RMB3,589 million, accounting
for 6.91%, mainly due to the increase in income from sales of bulk commodities.
Unit: Thousand Yuan Currency: RMB
Item
2021
2020 Increase/Decrease
Amount Ratio
Amount Ratio Amount Ratio
Fee and commission income
22,325,343 42.99%
18,457,811 45.54% 3,867,532 20.95%
Interest income
14,741,059 28.39%
10,963,881 27.05% 3,777,178 34.45%
Net investment gains
11,271,371 21.71%
10,159,587 25.06% 1,111,784 10.94%
Other income and gains
3,588,631 6.91%
953,157 2.35% 2,635,474 276.50%
Total revenue and other
income
51,926,404 100.00%
40,534,436 100.00% 11,391,968 28.10%
3. Total expenses
As of December 31, 2021, the Group’s total expenses were RMB38,284 million, representing a year-on-year
increase of 22.57%, mainly due to the increase in staff costs and interest expenses, in which:
(1) Fee and commission expenses amounted to RMB5,653 million, representing a year-on-year increase of
16.57%, mainly due to the increase in expenses from securities and futures brokerage business.
(2) Interest expenses amounted to RMB10,990 million, representing a year-on-year increase of 31.48%, mainly
due to the increase in the relevant finance costs during the Reporting Period as a result of the larger debt
financing scale as compared to the same period of last year.
(3) Staff costs amounted to RMB11,357 million, representing a year-on-year increase of 9.17%, mainly due to
the increase in accrued staff costs as a result of the income growth in the Group.
(4) Other expenses mainly include depreciation and amortisation expenses, tax and surcharges as well as
(reversal of)/provision for asset impairment loss and other operating expenses.
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Unit: Thousand Yuan Currency: RMB
Item
2021
2020 Increase/Decrease
Amount Ratio
Amount Ratio Amount Ratio
Fee and commission
expenses
(5,652,709) 14.77%
(4,849,322) 15.53% (803,387) 16.57%
Interest expenses
(10,990,375) 28.71%
(8,358,703) 26.76% (2,631,672) 31.48%
Staff cost
(11,357,194) 29.67%
(10,403,649) 33.31% (953,545) 9.17%
Depreciation and
Amortization expenses
(1,432,645) 3.74%
(1,341,384) 4.29% (91,261) 6.80%
Tax and surcharges
(239,895) 0.63%
(209,157) 0.67% (30,738) 14.70%
Other operating expenses
(8,062,817) 21.05%
(4,765,630) 15.26% (3,297,187) 69.19%
Impairment loss on
financial assets
(548,188) 1.43%
(1,306,208) 4.18% 758,020 (58.03)%
Other asset impairment
(loss)/reversal
– –
346 – (346) (100.00)%
Total expenses
(38,283,823) 100.00%
(31,233,707)
100.00% (7,050,116) 22.57%
4. Analysis of income and other gains and expenses
(1) Analysis of segment income and other gains
Unit: Thousand Yuan Currency: RMB
Business segment
Segment
income and
other gains
for the current
period
Percentage of
total segment
income and
other gains
for the current
period (%)
Segment income
and other gains
for the same
period of last
year
Percentage of
total segment
income and other
gains for the
same period of
last year (%)
Increase or decrease
in percentage of total
segment income
and other gains as
compared to the same
period of last year
Wealth
management
business
26,159,829 50.38
19,477,433 48.05
Increase of 2.33
percentage points
Institutional
services business
12,495,351 24.06
10,524,711 25.96
Decrease of 1.90
percentage points
Investment
management
business
4,162,162 8.02
4,070,097 10.04
Decrease of 2.02
percentage points
International
business
7,892,395 15.20
5,550,607 13.69
Increase of 1.51
percentage points
Others (including
offset)
1,216,667 2.34
911,588 2.26
Increase of 0.08
percentage point
HUATAI SECURITIES
72
During the Reporting Period, on a consolidated basis, the Group recorded income and other gains of
RMB51,926 million in total, representing a year-on-year increase of 28.10%. Among the principal business
segments, income and other gains from wealth management, institutional services, investment
management and international business increased year-on-year by RMB6,682 million, RMB1,971 million,
RMB92 million and RMB2,342 million, respectively.
In terms of income structure, the business structure of the Group has continued to be optimized. The income
from wealth management business segment accounted for 50.38% of the Group’s revenue, representing an
increase in proportion of 2.33 percentage points, mainly because the Group recorded an increase in both
margin financing and securities lending and sales of commodity futures and the business transformation
continued to advance due to the relatively active trading of the stock market; revenue from the institutional
service business segment recorded a year-on-year increase of 18.72%, but the proportion decreased by 1.90
percentage points as the growth rate was slightly lower than that of the Group’s revenue; the proportion
of the investment management business segment decreased by 2.02 percentage points due to due to
a slight decline in scale and revenue as a result of the continuous deepening of the de-channelization
transformation of the securities asset management business; and the income from international business
segment accounted for 15.20% of the Group’s revenue, representing an increase in proportion of 1.51
percentage points, mainly attributable to the improved results of Huatai Financial Holdings (Hong Kong).
(2) Analysis on segment expenses
Unit: Thousand Yuan Currency: RMB
Business segment
Segment
expenses for the
current period
Percentage of
total segment
expenses for the
current
period (%)
Segment
expenses for the
same period of
last year
Percentage of
total segment
expenses for the
same period of
last year (%)
Increase or decrease
in percentage of total
segment expenses as
compared to the same
period of last year
Wealth
management
business
(18,549,453) 48.45
(14,213,154) 45.51
Increase of 2.94
percentage points
Institutional
services business
(7,574,761) 19.79
(6,426,891) 20.58
Decrease of 0.79
percentage point
Investment
management
business
(1,290,760) 3.37
(1,756,231) 5.62
Decrease of 2.25
percentage points
International
business
(6,463,785) 16.88
(5,290,461) 16.94
Decrease of 0.06
percentage point
Others (including
offset)
(4,405,064) 11.51
(3,546,970) 11.35
Increase of 0.16
percentage point
In terms of expenses of each business segment as a percentage of total expenses of the Group, expenses
of wealth management business segment increased by 2.94 percentage points, mainly due to the increase
in fee expenses of brokerage business, interest expenses and cost of commodity sales business; expenses
of institutional services business segment, investment management business segment and international
business segment decreased by 0.79 percentage point, 2.25 percentage points and 0.06 percentage point.
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Unit: Thousand Yuan Currency: RMB
Item
Amount for the
current period
Amount for the
same period
of last year
Amount of
increase or
decrease
Percentage of
increase or
decrease (%)
Net cash used in operating
activities
(65,337,094)
(13,868,924) (51,468,170) N/A
Net cash used in investing
activities
(262,042)
(13,451,545) 13,189,503 N/A
Net cash generated from
financing activities
44,205,373
26,850,070 17,355,303 64.64
Net decrease in cash and cash
equivalents
(21,365,763)
(470,399) (20,895,364) N/A
During the Reporting Period, the net decrease of cash and cash equivalent of the Group was RMB21,366
million, in which:
5. Information of R&D personal
Focusing on the main development thread of the Group and implementing the two-pronged strategy
empowered by technology, the Company strived to forge technology as its core competitiveness, in bid
to achieve the vision of “building a world-class technology organization”. During the Reporting Period, the
Group continued to make heavy investment in science and technology to achieve scale expansion, which
further increased the number and enhanced the quality of scientific and technical personnel, optimized
the staff structure and increased the ratio of research and development personnel, so as to build a future-
oriented technology talent team. As of the end of the Reporting Period, the R&D personal of the Group
amounted to 3,169, representing 22.05% of the total staff of the Group.
As of the end of the Reporting Period, the information of R&D personnel of the Group is as follows:
6. Cash flow
1
Note: Due to the internal policies of corporations in the United States, the above statistics of education
composition of the R&D personnel do not include those of AssetMark.
Education composition
1
Doctor 12
Master 947
Bachelor 2,050
Junior college graduate 56
High school diploma or less –
Age composition
<30 1,681
≥30-<40 1,253
≥40-<50 158
≥50-<60 74
≥60 3
HUATAI SECURITIES
74
(1) Net cash used in operating activities was RMB65,337 million, mainly due to an increase in financial
instruments at fair value through profit or loss of RMB59,417 million as a result of the increase in the scale of
investment and trading business resulting in a capital outflow during the period.
(2) Net cash used in investing activities was RMB2,620 million, representing a decrease of RMB13,190 million
over the previous year, mainly due to a lower increase in the business scale of investing activities than that
of the previous year.
(3) Net cash generated from financing activities was RMB44,205 million, representing an increase of
RMB17,355 million over the previous year, mainly due to the issuance of debt financing instruments and
perpetual bonds.
Unit: Thousand Yuan Currency: RMB
Item
Amount for
the current
period
Amount for
the same period
of last year
Year-on-year
change (%) Principal reason
Total revenue and other
gains
51,926,404
40,534,436 28.10
Increase in fee and commission
income and net investment gains
Total expenses
(38,283,823)
(31,233,707) N/A
Increase in interest expenses, staff
costs and fee and commission
expenses
Operating profit
13,642,581
9,300,729 46.68
Increase in total revenue and
other gains
Profit before income tax
16,272,562
13,504,376 20.50
Increase in total revenue and
other gains
Profit for the year
13,600,893
10,870,446 25.12
Increase in total revenue and
other gains
Among which: profit for
the year attributable
to shareholders of the
Company
13,346,106
10,822,497 23.32
Increase in total revenue and
other gains
Total assets
806,650,833
716,751,235 12.54
Increase in cash held on behalf
of brokerage clients and margin
accounts receivable
Total liabilities
654,615,049
584,439,200 12.01
Increase in accounts payable to
brokerage clients and long-term
bonds
Total shareholders’
equity
152,035,784
132,312,035 14.91
Profit retention and issuance of
perpetual bonds during the year
7. Detailed description of significant changes in the Group’s business types, components or sources of
profit
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(II) Analysis of key items of consolidated statement of financial position
1. General description of consolidated statement of financial position
Item
As at December 31, 2021
As at December 31, 2020 Increase/decrease
Amount Ratio
Amount Ratio Amount Ratio
Non-current assets
Property and equipment
5,178,222 0.64%
5,014,084 0.70% 164,138 3.27%
Investment properties
294,008 0.04%
408,338 0.06% (114,330) (28.00)%
Goodwill
2,836,429 0.35%
2,260,945 0.32% 575,484 25.45%
Land use rights and other
intangible assets
6,790,673 0.84%
5,276,069 0.74% 1,514,604 28.71%
Interest in associates
18,269,459 2.26%
17,691,161 2.47% 578,298 3.27%
Interest in joint ventures
1,749,065 0.22%
1,641,846 0.23% 107,219 6.53%
Debt investment at
amortised cost
25,299,666 3.14%
19,230,660 2.68% 6,069,006 31.56%
Financial assets at fair
value through other
comprehensive income
5,020,422 0.62%
14,401,106 2.01% (9,380,684) (65.14)%
Financial assets at fair
value through profit or
loss
9,896,339 1.23%
9,229,523 1.29% 666,816 7.22%
Refundable deposits
27,627,129 3.42%
24,763,790 3.46% 2,863,339 11.56%
Deferred tax assets
654,651 0.08%
339,502 0.05% 315,149 92.83%
Other non-current assets
282,227 0.03%
283,320 0.04% (1,093) (0.39)%
Total non-current assets 103,898,290 12.88%
100,540,344 14.03% 3,357,946 3.34%
Current assets
Accounts receivable
10,287,174 1.28%
9,095,561 1.27% 1,191,613 13.10%
Other receivables and
prepayments
2,122,246 0.26%
1,131,408 0.16% 990,838 87.58%
Margin accounts
receivable
116,942,245 14.50%
102,574,007 14.31% 14,368,238 14.01%
Debt investment at
amortised cost
7,121,850 0.88%
11,180,848 1.56% (4,058,998) (36.30)%
Financial assets held
under resale agreements
11,751,970 1.46%
19,536,413 2.73% (7,784,443) (39.85)%
Unit: Thousand Yuan Currency: RMB
HUATAI SECURITIES
76
Item
As at December 31, 2021
As at December 31, 2020 Increase/decrease
Amount Ratio
Amount Ratio Amount Ratio
Financial assets at fair
value through profit or
loss
345,362,833
42.81%
282,577,589 39.42% 62,785,244 22.22%
Financial assets at fair
value through other
comprehensive income
4,457,415 0.55%
1,545,266 0.22% 2,912,149 188.46%
Derivative financial assets
15,247,805 1.89%
7,295,357 1.02% 7,952,448 109.01%
Clearing settlement funds
8,580,941 1.06%
6,988,396 0.98% 1,592,545 22.79%
Cash held on behalf of
brokerage clients
143,640,263 17.81%
124,635,007 17.39% 19,005,256 15.25%
Cash and bank balances
37,237,801 4.62%
49,651,039 6.93% (12,413,238) (25.00)%
Total current assets
702,752,543
87.12%
616,210,891 85.97% 86,541,652 14.04%
Total assets
806,650,833
100.00%
716,751,235 100.00% 89,899,598 12.54%
Current liabilities
Short-term bank loans
8,492,290 1.30%
11,299,859 1.93% (2,807,569) (24.85)%
Short-term debt
instruments issued
53,598,658 8.19%
43,951,388 7.52% 9,647,270 21.95%
Placements from other
financial institutions
14,018,721 2.14%
4,815,236 0.82% 9,203,485 191.13%
Accounts payable to
brokerage clients
147,501,833 22.53%
136,387,634 23.34% 11,114,199 8.15%
Employee benefits
payable
5,757,598 0.88%
4,156,895 0.71% 1,600,703 38.51%
Other payables and
accruals
106,620,755 16.29%
105,880,311 18.12% 740,444 0.70%
Contract liabilities
265,637 0.04%
92,366 0.02% 173,271 187.59%
Current tax liabilities
1,245,374 0.19%
1,275,589 0.22% (30,215) (2.37)%
Financial assets sold
under repurchase
agreements
130,710,001 19.97%
139,899,968 23.94% (9,189,967) (6.57)%
Financial liabilities at fair
value through profit or
loss
28,289,462 4.32%
12,196,234 2.09% 16,093,228 131.95%
Derivative financial
liabilities
10,643,222 1.63%
13,398,830 2.29% (2,755,608) (20.57)%
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ANNUAL REPORT 2021
Item
As at December 31, 2021
As at December 31, 2020 Increase/decrease
Amount Ratio
Amount Ratio Amount Ratio
Long-term bonds due
within one year
35,372,308 5.40%
11,428,893 1.96% 23,943,415 209.50%
Total current liabilities 542,515,859 82.88%
484,783,203 82.95% 57,732,656 11.91%
Net current assets 160,236,684 –
131,427,688 – 28,808,996 21.92%
Total assets less current
liabilities
264,134,974
–
231,968,032 – 32,166,942 13.87%
Non-current liabilities
Long-term bonds
97,966,119 14.97%
85,624,295 14.65% 12,341,824 14.41%
Long-term bank loans
722,816 0.11%
475,414 0.08% 247,402 52.04%
Long-term employee
benefits payable
7,057,339 1.08%
6,974,615 1.19% 82,724 1.19%
Deferred tax liabilities
2,619,161 0.40%
2,545,647 0.44% 73,514 2.89%
Financial liabilities at fair
value through profit or
loss
2,833,456 0.43%
3,185,296 0.55% (351,840) (11.05)%
Other payables and
accruals
900,299 0.13%
850,730 0.15% 49,569 5.83%
Total non-current
liabilities
112,099,190 17.12%
99,655,997 17.05% 12,443,193 12.49%
Net assets 152,035,784 100.00%
132,312,035 100.00% 19,723,749 14.91%
Shareholders’ equity
Share capital
9,076,650 5.97%
9,076,650 6.86% – –
Other equity instruments
9,996,425 6.58%
– – 9,996,425 –
Treasury share
(1,231,547) (0.81)%
(1,626,546) (1.23)% 394,999 –
Reserves
95,021,503 62.50%
92,622,778 70.00% 2,398,725 2.59%
Retained profits
35,559,779 23.39%
28,998,618 21.92% 6,561,161 22.63%
Total equity attributable
to shareholders of the
Company
148,422,810 97.62%
129,071,500 97.55% 19,351,310 14.99%
Non-controlling interests
3,612,974 2.38%
3,240,535 2.45% 372,439 11.49%
Total shareholders’ equity 152,035,784 100.00%
132,312,035 100.00% 19,723,749 14.91%
HUATAI SECURITIES
78
As of December 31, 2021, total non-current assets of the Group amounted to RMB103,898 million, representing
an increase of RMB3,358 million as compared to the beginning of the year, which was mainly due to the
increase of RMB2,863 million in refundable deposits. As of December 31, 2021, total non-current liabilities of
the Group amounted to RMB112,099 million, representing an increase of RMB12,443 million as compared to
the beginning of the year, which was mainly due to the increase in long-term bonds of RMB12,342 million.
As of December 31, 2021, total current assets of the Group amounted to RMB702,753 million, representing
an increase of RMB86,542 million as compared to the beginning of the year, which was mainly due to
the increase in margin accounts receivable of RMB14,368 million, the increase in the total amount of debt
investment at amortised cost, financial assets at fair value through other comprehensive income and
financial assets at fair value through profit or loss of RMB61,638 million as compared to the beginning of
the year, the increase in cash held on behalf of brokerage clients of RMB19,005 million, and the decrease
in cash and bank balances of RMB12,413 million. As of December 31, 2021, total current liabilities of the
Group amounted to RMB542,516 million, representing an increase of RMB57,733 million as compared to the
beginning of the year, which was mainly due to the increase in accounts payable to brokerage clients of
RMB11,114 million, the increase in short-term debt instruments issued and long-term bonds due within one
year of RMB9,647 million and RMB23,943 million, respectively.
2. Major restricted assets as of the end of the Reporting Period
As of the end of the Reporting Period, major restricted assets of the Group totaled RMB157,634,377 thousand,
including cash and bank balances, financial assets at fair value through profit or loss, financial assets at fair
value through other comprehensive income, debt investment at amortised cost and interest in associates.
Except for the above assets, no prime assets of the Group were seized, detained, frozen, mortgaged or
pledged so that they could or could not be realized, or could not be used to pay the debts only under a
certain condition. There was no circumstance or arrangement under which the prime assets were occupied,
used or benefited or the disposal of them was limited.
3. Description of changes in the measurement of assets measured at fair value and prime
assets
Fair value refers to the price received for selling one asset or the price payable for transferring one liability
by a market participant in an orderly transaction on the measurement date.
When estimating the fair value, the Group considers the characteristics that the market participants
consider when they price the related assets or liabilities on the measurement date (including the asset
status and the limitation on selling or using the assets), and adopts the currently available valuation
techniques that are supported by adequate available data and other information. The main valuation
techniques used include market approach, income approach and cost approach.
The impact of gains and losses of changes in fair value on the Group’s profit during the Reporting Period is
as follows:
Unit: Thousand Yuan Currency: RMB
Item
Impact on profit for 2021
Impact on profit for 2020Financial assets at fair value
through profit or loss
(8,812,676)
5,633,455
Financial liabilities at fair value
through profit or loss
118,087
(954,692)
Derivative financial instruments
9,003,658
(7,426,886)
Total
309,069
(2,748,123)
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4. Structure and quality of assets
As of December 31, 2021, total shareholders’ equity of the Group amounted to RMB152,036 million,
representing an increase of RMB19,724 million or 14.91% as compared to that of the end of 2020, which was
mainly due to the effects of issuance of perpetual bonds by the Group during the Reporting Period.
The asset structure of the Group continued to optimize and our assets quality and liquidity remained sound.
As of December 31, 2021, total assets of the Group amounted to RMB806,651 million, representing an increase
of RMB89,900 million or 12.54% as compared to the beginning of the year. Specifically, cash and bank
balances, cash held on behalf of brokerage clients and clearing settlement funds of the Group amounted
to RMB189,459 million, accounting for 23.49% of the total assets; margin accounts receivable amounted to
RMB116,942 million, accounting for 14.50% of the total assets; financial assets at fair value through profit or loss
amounted to RMB355,259 million, accounting for 44.04% of the total assets; debt investment at amortised
cost and financial assets at fair value through other comprehensive income amounted to RMB41,899 million,
accounting for 5.19% of the total assets; property and equipment, investment properties and other intangible
assets accounted for 1.52% of the total assets. Most of the assets have strong cashability. The Group’s assets
have strong liquidity and the asset structure is reasonable.
During the Reporting Period, the Group’s debt-to-assets ratio has decreased. As of December 31, 2021,
the liabilities of the Group amounted to RMB654,615 million, representing an increase of RMB70,176 million
or 12.01%. The debt-to-assets ratio was 76.93% (excluding the impact of customer funds), representing a
decrease of 0.27 percentage point as compared to the beginning of the year.
As of December 31, 2021, the Group obtained funds through borrowings and debt financing instruments. As
of the end of the Reporting Period, total principal of the placements from other financial institutions of the
Group amounted to RMB210,171 million. Details are shown as follows:
Borrowings and debt-financing with a financing maturity of more than one year were RMB98,689 million,
accounting for 46.96%. Among them, programs with a financing maturity of one to two years were
RMB28,750 million, those with a financing maturity of two to five years were RMB62,674 million and those with
a financing maturity of more than five years were RMB7,265 million. Borrowings and debt-financing with a
financing maturity of less than one year were RMB111,482 million, accounting for 53.04%.
As of December 31, 2021, the Group’s borrowings and debt financing with fixed interest rate were RMB206,833
million. In particular, the balance of short-term borrowings was RMB8,492 million; the balance of placement
from other financial institutions was RMB14,019 million; the balance of income receipts with fixed interest rate
was RMB915 million; the balance of corporate bonds was RMB155,164 million; the balance of subordinated
debts was RMB14,394 million; and the balance of foreign debts was RMB13,849 million.
As of December 31, 2021, cash and cash equivalents of the Group amounted to RMB45,929 million, of which
RMB cash and cash equivalents accounted for 70.62%.
Unit: Thousand Yuan Currency: RMB
Borrowings and debt financing plans
As of December 31, 2021
Placement from China Securities Finance Corporation Limited
–
Placement from other financial institutions
14,018,721
Short-term borrowings
8,492,290
Short-term financing funds payable
53,598,658
Long-term borrowings
722,816
Bonds payable
133,338,427
Total principal 210,170,912
HUATAI SECURITIES
80
As of December 31, 2021, all of the Group’s short-term bank loans were credit borrowings.
As of December 31, 2021, all of the Group’s long-term bank loans were credit borrowings.
5. Analysis of profitability
In 2021, the Group firmly implemented the “two-pronged” (
雙輪驅動
) development strategy of wealth
management and institutional services with technology empowerment, and continuously enhanced its
digital operation capability. Its main businesses have been growing steadily throughout the year and its
comprehensive strength soundly ranked in the forefront of the industry.
6. Explanations on the changes in the scope of consolidation of the statements
For details of the explanations on the changes in the scope of consolidation of the statements of the Group,
please refer to Note 24 to the financial statements of this report headed “Investment in Subsidiaries”.
7. Analysis of income tax policy
During the Reporting Period, the Company’s income tax was subject to the Corporate Income Tax Law of the
PRC (
《中華人民共和國企業所得稅法》
) and the Enforcement Regulations of Corporate Income Tax Law of the
PRC (
《中華人民共和國企業所得稅法實施條例》
). The calculation and payment methods of the income tax shall
be subject to the Announcement of the State Administration of Taxation on Issuing the Measures for the
Consolidated Collection of Corporate Income Tax on Trans-regional Business Operations (Announcement
[2012] No. 57 of the State Administration of Taxation) (
《國家稅務總局關於印發
<
跨地區經營匯總納稅企業所得稅
徵收管理辦法
>
的公告》
(
國家稅務總局公告
[2012]57
號
)). The income tax rate applicable to the Company and
its domestic subsidiaries is 25%. The Company enjoys the preferential policy of calculating and deducting
research and development expenses, and the profit tax rate applicable to the Hong Kong subsidiary of the
Company is 16.5%. Other overseas subsidiaries of the Company are subject to income taxes at tax rates
applicable in their jurisdictions.
81
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and Strategies
ANNUAL REPORT 2021
Financing
channels
In terms of financing methods, the Company has two financing channels, equity financing and debt
financing. In terms of financing maturity, the Company’s short-term financing channels included
credit lending via interbank market, bond repurchasing via interbank market and stock exchange
market, issuing short-term financing bills, short-term corporate bonds, issuing income credential via
quotation and service system for inter-institutional private equity products and self-built counter
market, carrying out margin refinancing and income rights financing in relation to margin financing
and securities lending from banks and other financial institutions, etc., and the Company’s medium
and long-term financing channels included issuing corporate bonds, private corporate bonds,
financial bonds, subordinated debt, perpetual subordinated debt and equity refinancing, etc. In
addition, the Company can also introduce foreign currency funds through the issuance of overseas
bonds and medium-term notes as well as syndicated loan to support the business development
of the Company. After years of effective efforts, the Company explored and established the
short, medium and long-term diversified financing channels, which played a key role in the rapid
development process of the Company’s business.
Liquidity
management
policies and
measures
The Company has always attached great importance to liquidity management. As for funds
management, it adhered to the principle of “full amount concentrated, allocated in a unified
way, valued by classification and monitored timely”. In terms of management and development
strategies, it paid attention to matching business scale with liabilities. Based on reasonable asset
allocation and diversified debt financing, the Company ensured reasonable matching of duration,
scale of assets liabilities and proper liquidity.
The Company followed the general principles of comprehensiveness, prudency, predictiveness for
liquidity risk management according to the centralized management and hierarchical prevention
and control management model, established a liquidity risk management system based on
comprehensive risk management framework, as well as a sound liquidity risk management system
appropriate to the Company’s strategy, and implemented liquidity risk management policy with
the preference for “steadiness and safety”. The Company ensured no liquidity risk that would
cause significant impacts on sustainable operation, so as to fully guarantee the steady and safe
development of the business of the Company.
In order to ensure its liquidity, the Company has adopted various measures mainly including: 1)
constantly improving the capital planning system, establishing a daytime liquidity monitoring system
and realizing a daytime monitoring of the management of capital position and cash flow through
platforms, so as to ensure the security of daytime liquidity; 2) strengthening the management for
the matching between durations of assets and liabilities and establishing high-quality current asset
reserves, in order to enhance the diversity and stability of financing; 3) upgrading and transforming
the treasury management platform, and achieving effective identification, measurement,
monitoring and controlling on liquidity risks through information system, in order to ensure that the
liquidity risks are measurable, controllable and tolerable; 4) analyzing supervisory indicators of cash
flow and liquidity risk under certain stress scenarios to evaluate the tolerance level of the Company
for liquidity risks and analyzing the stress test results to constantly improve the Company’s response
capacity for liquidity risks; 5) leveraging the consolidation supervision to strengthen the subsidiary
liquidity risk guidance and to implement vertical management for overseas subsidiaries’ fund and
liquidity risks while also to propose a package of management and control measures for core risk
points to improve subsidiaries’ response capacity for liquidity risks and the Group’s prevention and
control for liquidity risks; 6) organizing the formulation, exercise and evaluation of a liquidity risk
contingency plan, in order to improve the Company’s emergency capacity for liquidity risks; and 7)
improving the liquidity risk reporting system, so as to ensure that the management is able to keep
abreast of the Group’s liquidity risk level and management situation.
8. Analysis of financing channels and financing capacity
HUATAI SECURITIES
82
Analysis of
financing
capability
and financing
strategy
The Company has operated in compliance with regulations, enjoyed sound reputation as well as
strong capital strength, profitability and debt repayment ability, maintained good cooperation
relationships with commercial banks, and had sufficient bank credit. As of the end of the Reporting
Period, the total credit line obtained by the Company from commercial banks exceeded RMB480
billion, demonstrating a strong short-term and medium-to-long term financing abilities. As of the
end of the Reporting Period, after assessment by China Lianhe Credit Rating Co., Ltd., the credit rating
of the Company was AAA and the credit rating outlook is stable. After comprehensive assessment
by Shanghai Brilliance Credit Rating & Investors Service Co., Ltd., the credit rating of the Company
was AAA and the credit rating outlook is stable. After comprehensive assessment by Standard
& Poor’s, the credit rating of the Company was BBB+ and the credit rating outlook is stable. After
comprehensive assessment by Moody’s, the credit rating of the Company was Baa1 and the credit
rating outlook is stable. As a listed securities dealer, the Company can also meet the fund demand
for long-term development by means such as equity refinancing.
Taking into consideration both liquidity and profitability, the Company held a certain number of
fixed-income products. Interest rate changes will bring direct impact to the interest income of the
cash and the market price and investment income of the bond investment held by the Company.
Margin financing and securities lending and other capital-based intermediary business, corporate
debt financing and other businesses which directly relate to interest rates may directly impact
corresponding interest income and financing interest expenses. At the same time, the Company’s
stock investment was also indirectly affected by interest rate changes. In addition, as the Company
has registered overseas subsidiaries whose capital is contributed in foreign currency, the Company
holds foreign currency funds and assets, and the changes of exchange rate will have certain
impact on the Company’s financial situation. The Company optimized the distribution of assets and
liabilities structure by timely adjusting all kinds of asset structure, strengthened the research on the
interest rate and exchange rate market, and used appropriate interest rate, exchange rate and
other derivative financial tools to avoid risks and reduce the influence of these factors.
Contingencies
and their
impacts on
the financial
situation of the
Company
–
(III) Analysis of industry operation
For details, please refer to “Management Discussion and Analysis and Report of the Board” in this report.
(IV) Analysis of investments
1. Overall analysis of external equity investments
As of the end of the Reporting Period, the Group’s investment in associates amounted to RMB18,269 million,
representing an increase of RMB578 million or 3.27% as compared to RMB17,691 million at the beginning of
the period; and the investment in joint ventures amounted to RMB1,749 million, representing an increase of
RMB107 million or 6.52% as compared to RMB1,642 million at the beginning of the period. For details of the
overall situation of the Group’s external equity investment, please refer to Note 25 “Interest in associates”
and Note 26 “Interest in joint ventures” to the financial statements in this report.
(1) The Company had no significant equity investment
(2) The Company had no significant non-equity investment
(3) Financial assets measured at fair value
83
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Unit: Thousand Yuan Currency: RMB
Item
Balance at the
end of last year
Balance at the
end of this year
Investment
income during the
Reporting Period
The changed
amount of fair
value during the
Reporting Period
Financial assets at fair
value through other
comprehensive income
15,946,372
9,477,837
518,313 (582,699)
Financial assets at fair
value through profit or loss
291,807,112
355,259,172
28,406,208 (8,812,676)
Derivative financial
instruments
(6,103,473)
4,604,583
(17,553,798) 9,003,658
2. Information about the use of raised funds
(1) Overview of the use of raised funds
①
Overview of the use of funds raised from the issuance of A Shares
(a) Information about the use of funds raised from the Initial Public Offering of A Shares
Under the Approval for the Initial Public Offering by Huatai Securities Co., Ltd. (Zheng Jian Xu Ke [2010]
No. 138) (
《關於核准华泰证券股份有限公司首次公開發行股票的批覆》
(
證監許可
[2010] 138
號
)) issued by the
CSRC, the Company publicly issued 784,561,275 ordinary shares in RMB to the public on February 9, 2010,
each stock of which was RMB1.00 at an offering price of RMB20.00, and the total amount of funds raised
was RMB15,691,225,500.00. The raised funds after deducting the underwriting fee and sponsoring fee of
RMB130,000,000.00 amounted to RMB15,561,225,500.00, which were all in place on February 12, 2010, and
verified by Jiangsu Talent Certified Public Accountants with the capital verification report (Tian Heng Yan Zi
(2010) No. 009) issued. As of December 31, 2012, all the principal of the funds raised from the IPO was used up
and the accumulative amount of RMB15.681 billion of the raised funds (including interest of raised funds of
RMB119.8082 million) were used. All of the accounts designated for the use of raised funds of the Company
had been cancelled with settlement of interests.
(b)Information about the use of funds raised from the Non-Public Issuance of A Shares
Upon the Approval for the Non-Public Issuance of Shares by Huatai Securities Co., Ltd. (Zheng Jian Xu Ke
[2018] No. 315) (
《關於核准华泰证券股份有限公司非公開發行股票的批覆》
(
證監許可
[2018] 315
號
)) issued by the
CSRC, the Company completed the non-public issuance of 1,088,731,200 RMB-denominated ordinary shares
(A Shares) in July 2018, each with a nominal value of RMB1.00 at an offering price of RMB13.05 and the total
amount of funds raised was RMB14,207,942,160.00. After deducting the issuing fees of RMB74,736,488.79
related to the non-public offering (including underwriting sponsorship fee, attorney fee, accountant fee,
information disclosure fee, issuance registration fee, stamp duty and other fees), the net funds raised were
RMB14,133,205,671.21, which were all in place on July 31, 2018 and were verified by KPMG Huazhen LLP with
the capital verification report (KPMG Huazhen Yan Zi No. 1800286) issued. As of December 31, 2019, all the
funds raised from the Non-Public Issuance of the Company were used up and the accumulative amount
of RMB14.184 billion of the raised funds (including interest income generated by raised funds) was used.
Accounts designated for the use of raised funds of the Company have been cancelled.
②
Overview of the use of funds raised from the issuance of H Shares
Approved by the CSRC, the Company completed the issuance of H Shares in 2015. Funds raised from the
issuance of H Shares were verified by KPMG Huazhen LLP with the capital verification report (KPMG Huazhen
Yan Zi No. 1501031) issued. According to the Capital Verification Report issued by KPMG Huazhen LLP, the net
(4) There was no major asset restructuring and integration by the Company during the Reporting
Period
HUATAI SECURITIES
84
funds raised from the initial public issuance of H Shares in 2015 were RMB30,587,689,604.94 (excluding related
listing fees), and raised funds after deducting the underwriting and issuing fees were RMB30,015,054,696.76.
As of December 31, 2020, all the funds raised from the H Share issuance of the Company were used up and
the accumulative amount of RMB30.666 billion of the raised funds (including interest income generated by
raised funds) was used and relevant accounts have been cancelled.
③
Overview of the use of funds raised from the issuance of GDRs
Upon the Approval for Issuance and Admission of Global Depository Receipts on London Stock Exchange
by Huatai Securities Co., Ltd. (Zheng Jian Xu Ke [2018] No. 1993) (
《關於核准华泰证券股份有限公司發行全球存託
憑證並在倫敦證券交易所上市的批覆》
(
證監許可
[2018] 1993
號
)) issued by the CSRC, the Company completed
the total issuance of 82,515,000 GDRs in June 2019, each of which at an offering price of USD20.50 and the
total amount of funds raised was USD1,691,557,500.00. After deducting the issuing fees of USD39,961,513.72
related to the GDR offering, the net funds raised were USD1,651,595,986.28, equivalent to RMB11,313,036,931.20
at the central parity of RMB against the U.S. dollar on the date when transferred to the account. The
abovementioned funds raised were all in place on June 28, 2019 and were verified by KPMG Huazhen LLP with
the capital verification report (KPMG Huazhen Yan Zi No. 1900393) issued.
During the Reporting Period, there were surplus funds of RMB128,629,875.52 (calculated at the exchange
rate at the end of 2020) carried forward from 2020, all of which were used for supporting the internal and
external growth of international business during the Reporting Period. The usage of the funds raised was
consistent with that agreed in the GDR prospectus.
As of the end of the Reporting Period, the Company, with respect to its GDRs, has used raised funds of:
RMB3,547,720,085.15, calculated at actual exchange rate on the date of settlement of foreign currency,
for continuous investment in the existing main businesses, deeply cultivating the business sectors such
as wealth management, institutional services and investment management, and further promoting the
business transformation and upgrading; RMB1,000,000,000.00, calculated at actual exchange rate on the
date of settlement of foreign currency, for supplementing working capital and meeting general enterprise
purposes; USD1,013,928,574.46 for supporting the internal and external growth of international business,
and expanding overseas strategic layout. As of December 31, 2021, planned use of the Company’s funds
raised from the issuance of GDRs was consistent with that agreed in the GDR prospectus with no change.
All the funds raised from the GDR offering of the Company were used up and relevant accounts have been
cancelled.
Unit: Ten Thousand Yuan Currency: RMB
Raising
year
Raising
method
Total amount
of raised
funds
Total amount
of raised
funds used in
the Reporting
Period
Total amount
of raised
funds used
accumulatively
Total
amount of
raised funds
yet to be
used
Usage and
whereabouts
of raised funds
unused
2019 GDR offering 1,131,303.69 12,862.99 1,158,666.14 – –
2018
Non-Public
offering
(A Shares)
1,420,794.22 – 1,418,421.26 – –
2015
Initial offering
(H Shares)
3,058,768.96 – 3,066,604.63 – –
2010
Initial offering
(A Shares)
1,556,122.55 – 1,568,103.37 – –
Total – 7,166,989.42 12,862.99 7,211,795.40 – –
Notes to the overview of the use of raised funds
–
Overview of the use of raised funds
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ANNUAL REPORT 2021
(2) There was no commitment in raised funds of the Company during the Reporting Period
(3) There was no change in raised funds of the Company during the Reporting Period
3. Projects not funded by raised funds
During the Reporting Period, the Company did not have any project funded by non-raised funds whose
total investment was more than 10% of the audited net assets of the Company as at the end of the previous
year.
(V) There were no sales of significant assets or equities by the Company during the
Reporting Period
(VI) There was no bankruptcy or restructuring, merger or division, major disposal,
acquisition, replacement or stripping of assets or restructuring of other companies
by the Company during the Reporting Period
(VII) Analysis of Key Subsidiaries
HUATAI SECURITIES
86
Unit: Ten Thousand Yuan Currency: RMB
Company name
Shareholding percentage
of the Company Registered capital Total assets Net assets Operating revenue Total profit Net profit
Huatai Securities
(Shanghai) Asset
Management Co., Ltd.
100% 260,000.00 1,128,068.48 954,576.64 235,674.44 168,946.85 127,428.88
Main businesses: securities asset management; publicly offered securities investment funds management. (Businesses that need to be approved by law shall be carried out
upon the approval of relevant authorities).
Huatai International
Financial Holdings
Company Limited
100% HK$ 10,200,000,002.00 14,108,135.22 1,325,933.30 630,266.24 145,441.04 117,617.30
Main business: holding company.
Huatai Purple Gold
Investment Co., Ltd.
100% 600,000.00 1,622,692.63 1,150,228.66 93,542.54 82,305.93 63,292.02
Main businesses: equity investment, debt investment, other fund investments associated with equity investment and debt investment; investment consulting and investment
management for equity investment and debt investment, and financial consulting. (Businesses that need to be approved by law shall be carried out upon the approval of
relevant authorities).
Huatai Innovative
Investment Co., Ltd.
100% 350,000.00 419,023.46 353,549.63 109,486.43 96,888.11 73,108.50
Main businesses: project investment, investment management, sale of precious metal, hotel management; the followings are permitted to be operated only by branches:
accommodation, catering services, sale of foods, fitness services, swimming pool, laundry collection, typing and copying, motor vehicle public parking services, conference
services, undertaking exhibitions, tourism information consultation, ticket agent service. (1. Public fund-raising shall not be conducted without approval by relevant authorities;
2. trading activities of securities products and financial derivatives shall not be publicly carried out; 3. no loans shall be granted; 4. no guarantee shall be provided to any other
enterprises except for its invested enterprises; promises shall not be made to investors that the principal of their investments will not be subject to any loss or that they will get a
minimum return; enterprises shall independently select business items and carry out operations according to law; businesses that need to be approved by law shall be carried
out in accordance with the approved contents upon the approval of relevant authorities; business activities classified as prohibited or restricted items by industrial policies of
this city shall not be carried out).
Huatai United Securities
Co., Ltd.
99.92% 99,748.00 827,715.45 488,528.91 391,017.07 104,868.94 78,663.17
Main businesses: securities underwriting and sponsorship (excluding treasury bonds, non-financial corporate debt financing instruments and financial bond underwriting);
financial advisory for securities trading and investment related activities; other businesses approved by the CSRC.
Huatai Futures Co., Ltd.
60% 160,900.00 5,223,073.41 334,162.34 403,743.95 50,382.58 36,750.23
Main businesses: commodities futures brokerage, financial futures brokerage, futures investment consultancy, asset management and fund sales. (Businesses that need to be
approved by law shall be carried out upon the approval of relevant authorities).
Jiangsu Equity
Exchange Co., Ltd.
52% 20,000.00 50,577.15 40,483.71 11,250.82 6,175.97 4,638.60
Main businesses: provision of premises, facilities and services for approved listing, registration, custody, trading, financing, settlement, transfer, dividend distribution and pledge
of equity interests, bonds, assets and related financial products and financial derivatives of unlisted companies, organization and monitoring of trading activities, issuance of
market information, trading of listed products in the trading market as an agent, and provision of consultation services for market participants. (Businesses that need to be
approved by law shall be carried out upon the approval of relevant authorities).
China Southern Asset
Management Co., Ltd.
41.16% 36,172.00 1,415,904.41 865,654.31 760,661.17 282,774.09 216,297.46
Main businesses: fund raising, fund sales, asset management and other businesses approved by the securities regulatory authority under the State Council.
Huatai-PineBridge Fund
Management Co., Ltd.
49% 20,000.00 240,866.64 151,816.82 149,524.63 55,763.93 41,284.14
Main businesses: fund raising, fund sales, asset management and other businesses approved by the CSRC.
Bank of Jiangsu Co.,
Ltd.
5.63% 1,154,445.00 261,839,000.00 19,713,326.90 6,377,100.00 2,647,600.00 2,055,873.50
Main businesses: deposits taking from the general public; granting short-term, medium-term and long-term loans; handling domestic settlements; handing acceptance and
discounting of negotiable instruments; issuing financial bonds; acting as an agent for the issue, honoring and underwriting of government bonds and underwriting of short-term
commercial papers; buying and selling government bonds, financial bonds, corporate bonds; engaging in interbank lending; providing letter of credit services and guaranty;
acting as an agent for receipts/payments and insurance business, wealth management, fund sales, precious metal sales, receipts/payments and custody of collective fund
trust scheme; provision of safe deposit boxes; handing entrusted deposits and loans; bank card services; foreign currency deposits; foreign currency loans; foreign exchange
remittances; currency exchange; settlement and sales of foreign exchange, acting as an agent for forward settlement and sales of foreign exchange; international settlement;
proprietary trading and agency for trading of foreign exchange; interbank foreign exchange lending; trading or acting as an agent for trading in foreign currency securities
other than stocks; credit investigation, consultation and witness services; online banking, and other services approved by the banking regulatory bodies and relevant authorities.
(Businesses that need to be approved by law shall be carried out upon the approval of relevant authorities).
Notes: The financial data of the Bank of Jiangsu was extracted from its express report of 2021 annual results. The data of net assets represents owner’s equity attributable to shareholders of the listing company, and the data of net profit represents net profit
attributable to shareholders of the listing company.
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(VIII) Structured entities controlled by the Company
The structured entities consolidated by the Group mainly refer to the asset management plans with the
Group as the manager or investment advisor and the investor. The Group carries out a comprehensive
assessment as to whether the Group will be significantly affected by variable returns due to the return
which the Group is entitled to for the shares held by it and its remuneration as the manager or investment
advisor of the asset management plan, and according to which, determines whether the Group is the main
responsible person for the asset management plan. As at December 31, 2021, the Group has consolidated 34
structured entities whose assets reached RMB29,375,007,858.58 in total. The amount of the trading financial
assets in the balance sheet, which embodies the equity of the Group in the above consolidated structured
entities, was RMB28,328,912,700.12.
(IX) Other information
1. Establishment and disposal of subsidiaries by the Company during the Reporting Period
(1) Establishment and disposal of subsidiaries by the Company during the Reporting Period
For details of the establishment and disposal of subsidiaries by the Company during the Reporting Period,
please refer to Note 24 to the financial statements of this report headed “Investment in Subsidiaries”.
(2) Capital increase in Huatai International during the Reporting Period
According to the Letter on the Proposed Capital Increase by Huatai Securities Co., Ltd. to Hong Kong
Subsidiary (
《關於华泰证券股份有限公司擬向香港子公司增資有關事項的函》
) issued by the CSRC and the Resolution
on the Increase of Registered Capital of Huatai International Financial Holdings Company Limited, a wholly-
owned subsidiary of the Company (
《關於增加公司全資子公司華泰國際金融控股有限公司註冊資本金的議案》
)
considered and approved by the Board of Directors of the Company, the Company resolved to increase
capital of HK$1.4 billion to Huatai International Financial Holdings Company Limited, its wholly-owned
subsidiary. During the Reporting Period, the capital increase of HK$1.4 billion to Huatai International Financial
Holdings Company Limited was completed with the registered capital changed to HK$10,200,000,002.
2. The establishment and disposal of the Company’s branches and securities branches during
the Reporting Period
During the Reporting Period, the Company relocated one branch, and no branches were newly established
or cancelled; 2 securities branches were newly established and 39 were relocated, and no securities
branches were cancelled.
As of the end of the Reporting Period, the Company has 28 branch offices and 245 securities branches. For
details, please refer to “Appendix II: List of Branch Offices and Securities Branches” in this report.
(1) Relocation of branch during the Reporting Period
No. Name of branches Address after relocation Issue Date of License
1
Huatai Securities
Sichuan Branch
Rooms 2503, 2504, 2505, 2506, 2507 and 2508,
Building 1-1-25, China Overseas Chinese Financial
Center, No. 33, Jiaozi Avenue, Hitech Zone, Chengdu,
China (Sichuan) Pilot Free Trade Zone
November 16, 2020
HUATAI SECURITIES
88
(2) Newly established securities branches during the Reporting Period
(3) Relocation of securities branches during the Reporting Period
No.
Name of Securities
Branches Address
Date of
establishment Business scope
1
Securities
Branch of Huatai
Securities in
Ganzhou M&A
Fund Park
Shops 1-1#, 1-10#,
2-1#, 2-10#, Building
1, Yangming
International Centre,
Zhangjiang New
District, Zhanggong
District, Ganzhou,
Jiangxi
May 25, 2021
Securities brokerage; securities investment
consulting; securities underwriting (limited
to underwriting of government bonds,
debt financing instruments of non-
financial enterprises and financial bonds
(including policy-bank bonds) only);
margin financing and securities lending;
agency sale of securities investment
funds; agency sale of financial products.
2
Securities
Branch of Huatai
Securities in
Dongfang Road,
Pudong New
District, Shanghai
Rooms 03-04, 15/
F (The actual floor
is 03 – 04,12/F), No.
18 Dongfang Road,
China (Shanghai)
Pilot Free Trade
Zone
July 22, 2021
Securities brokerage; securities investment
consulting; securities underwriting (limited
to underwriting of government bonds,
debt financing instruments of non-
financial enterprises and financial bonds
(including policy-bank bonds) only; and
limited to underwriting); margin financing
and securities lending; agency sale of
securities investment funds; agency sale
of financial products.
No.
Name of the branch before
relocation
Name of the branch after
relocation Address after relocation
Issue Date
of License
1
Securities Branch of Huatai
Securities in Dongfang
Road, Danyang, Zhenjiang
Securities Branch of Huatai
Securities in Fenghuang
Road, Danyang, Zhenjiang
No. 16-1 to 16-3 Fenghuang
Road, Development Zone,
Danyang
January 12,
2021
2
Securities Branch of Huatai
Securities in Renmin Middle
Road, Nantong
Securities Branch of Huatai
Securities in Renmin Middle
Road, Nantong
East Half of Jinxin Mansion,
No. 79 Renmin Middle Road,
Chongchuan District, Nantong
January 12,
2021
3
Securities Branch of Huatai
Securities in Renmin South
Road, Chengdu
Securities Branch of Huatai
Securities in Renmin South
Road, Chengdu
Room 703, 7/F, Unit 1, Building
1, New Hope Mansion, No. 45
Section 4, Renmin South Road,
Wuhou District, Chengdu
January 25,
2021
4
Securities Branch of Huatai
Securities in Haide Third
Avenue, Shenzhen
Securities Branch of
Huatai Securities in China
Resources Building, Keyuan
South Road, Shenzhen
Rooms L1805-L1806 China
Resources Building, No. 2666
Keyuan South Road, Haizhu
Community, Yuehai Sub-
district, Nanshan District,
Shenzhen
January 25,
2021
5
Securities Branch of Huatai
Securities in Wangyuan
South Road, Fengxian
District, Shanghai
Securities Branch of Huatai
Securities in Wangyuan
South Road, Fengxian
District, Shanghai
No. 46, 47, 48 and 49 Miaojing
New Village, Fengxian District,
Shanghai
January 27,
2021
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No.
Name of the branch before
relocation
Name of the branch after
relocation Address after relocation
Issue Date
of License
6
Securities Branch of Huatai
Securities in Xinnan First
Avenue, High and New-
tech Zone, Shenzhen
Securities Branch of
Huatai Securities in China
Resources Land Building,
Shennan Avenue, Shenzhen
Rooms 2904, 2905 and 2906,
Block D, China Resources Land
Building, No. 19 Kefa Road,
Dachong Community, Yuehai
Sub-district, Nanshan District,
Shenzhen
January 27,
2021
7
Securities Branch of Huatai
Securities in Qingnian
Road, Xuzhou
Securities Branch of Huatai
Securities in Huaihai East
Road, Xuzhou
No. 165, 1/F; Rooms 2102-2105,
Unit A, Suning Plaza, No. 29
Huaihai East Road, Gulou
District, Xuzhou
March 8,
2021
8
Securities Branch of Huatai
Securities in Shanghai East
Road, Nantong
Securities Branch of Huatai
Securities in Shanghai East
Road, Nantong
Room 101, Building 2, Jinhai
Garden, Development Zone,
Nantong
March 5,
2021
9
Securities Branch of Huatai
Securities in Kaifeng North
Road, Zhongjiang County,
Deyang
Securities Branch of Huatai
Securities in Diamond Plaza,
Changjiang West Road,
Deyang
Units A2, A3, A4, A5, A6, 5/F,
Building 1, Diamond Plaza, No.
29 Section 2, Changjiang West
Road, Deyang, Sichuan
March 31,
2021
10
Securities Branch of Huatai
Securities in Guangzhou
Road, Nanjing
Securities Branch of Huatai
Securities in Wenlan Road,
Nanjing
No. 6 Wenlan Road, Xianlin
Higher Education Mega
Center, Qixia District, Nanjing
April 7, 2021
11
Securities Branch of Huatai
Securities in Zhongshan
North Road, Nanjing
Securities Branch of Huatai
Securities in Zhenghe
Middle Road, Nanjing
Room 902, 9/F, Building
D, Nanjing Yangtze River
International Shipping Center,
No. 118 Zhenghe Middle Road;
No. 3-15-2 Yongning Street,
Gulou District, Nanjing
April 19, 2021
12
Securities Branch of Huatai
Securities in Zhongtai Road,
Nanning
Securities Branch of Huatai
Securities in Minzu Avenue,
Nanning
Rooms 702-704, 7/F, South
Office Building, Nanning China
Resources Center, No. 136-5
Minzu Avenue, Qingxiu District,
Nanning
April 29,
2021
13
Securities Branch of Huatai
Securities in Jiefang Road,
Nanjing
Securities Branch of Huatai
Securities in Daguang Road,
Nanjing
Room 202A, Guanghua
Mansion, No. 39 Daguang
Road, Qinhuai District, Nanjing
May 25,
2021
14
Securities Branch of Huatai
Securities in Tianhe East
Road, Guangzhou
Securities Branch of Huatai
Securities in Xingmin Road,
Guangzhou
Rooms 906-911, The Third of
No. 222 Xingmin Road, Tianhe
District, Guangzhou
May 28,
2021
15
Securities Branch of Huatai
Securities in Tibet South
Road, Shanghai
Securities Branch of Huatai
Securities in Huangpi South
Road, Huangpu District,
Shanghai
Units 01B, 02, 03, 05, 06, 3/F,
Block A, Building 4, No. 1, Lane
838, Huangpi South Road,
Huangpu District, Shanghai
June 17, 2021
16
Securities Branch of Huatai
Securities in Hongri Avenue,
Lianshui, Huaian
Securities Branch of Huatai
Securities in Hongri Avenue,
Lianshui, Huaian
Room 104, Building Z02, Xin Lian
Yi Pin, Zhong Lian One City,
Lianshui County, Huaian
June 17, 2021
HUATAI SECURITIES
90
No.
Name of the branch before
relocation
Name of the branch after
relocation Address after relocation
Issue Date
of License
17
Securities Branch of Huatai
Securities in Yongning
Avenue, Wuxue
Securities Branch of Huatai
Securities in Minzhu Road,
Wuxue
Shops 101-104 and Shops
201-203, Building 3, Guoding
Mansion, No. 138-17 Minzhu
Road, Wuxue, Hubei
June 17, 2021
18
Securities Branch of Huatai
Securities in Gannan Road,
Lanzhou
Securities Branch of Huatai
Securities in Donggang
West Road, Lanzhou
4/F, Changye Golden Villa,
No. 621 Donggang West Road,
Chengguan District, Lanzhou,
Gansu
June 24,
2021
19
Securities Branch of Huatai
Securities in Beijing Middle
Road, Jingzhou
Securities Branch of Huatai
Securities in Jiangjin Middle
Road, Jingzhou
No. 14, 1-2/F, Building 2,
Champs Elysees, Jiangjin
Middle Road, Shashi District,
Jingzhou
June 22,
2021
20
Securities Branch of Huatai
Securities in Qingjiang
Avenue, Yidu
Securities Branch of Huatai
Securities in Changjiang
Avenue, Yidu
No. 167 Changjiang Avenue,
Lucheng, Yidu
July 7, 2021
21
Securities Branch of
Huatai Securities in
Huatai Securities Building,
Zhongshan East Road,
Nanjing
Securities Branch of
Huatai Securities in
Huatai Securities Building,
Zhongshan East Road,
Nanjing
25/F, No. 90 Zhongshan East
Road, Nanjing
August 7,
2021
22
Securities Branch of Huatai
Securities in Xinhua West
Street, Yinchuan
Securities Branch of Huatai
Securities in Yinjiaqu North
Street, Yinchuan
Room 101, Commercial Building
No. 1, Jinhai Mingyue Garden,
No. 65 Yinjiaqu North Street,
Jinfeng District, Yinchuan,
Ningxia Hui Autonomous
Region
August 16,
2021
23
Securities Branch of Huatai
Securities in Xingzheng
Road, Zhongshan
Securities Branch of Huatai
Securities in Zhongshan 5th
Road, Zhongshan
The Second of Block 1, 1/F,
Building 3, Zima Pentium Plaza,
No. 2 Zhongshan 5th Road,
East District, Zhongshan
August 11,
2021
24
Securities Branch of Huatai
Securities in Wusi Street,
Xining
Securities Branch of Huatai
Securities in Xinning Road,
Xining
Rooms 59-147, 3/F, Building 5,
Hexin Center, No. 23 Xinning
Road, Chengxi District, Xining,
Qinghai
September
9, 2021
25
Securities Branch of Huatai
Securities in Shennan
Avenue, Shenzhen
Securities Branch of Huatai
Securities in Shennan
Avenue, Shenzhen
Room 2501A, Building B,
Donghai International Center
(Phase I), No. 7888 Shennan
Avenue, Donghai Community,
Xiangmihu Sub-district, Futian
District, Shenzhen
September
24, 2021
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No.
Name of the branch before
relocation
Name of the branch after
relocation Address after relocation
Issue Date
of License
26
Securities Branch of Huatai
Securities in Youyi Avenue,
Wuhan
Securities Branch of Huatai
Securities in Youyi Avenue,
Wuhan
Rooms 03-04, 1/F, Unit 3,
Building 1, Vanke Jinyu Huafu,
No. 29 Fangji Road, Yangyuan
Street, Wuchang District,
Wuhan
September
16, 2021
27
Securities Branch of Huatai
Securities in Jiangbeizui,
Chongqing
Securities Branch of Huatai
Securities in Jiangbeizui,
Chongqing
Rooms 1502-1503, 15/F, Unit
2, No. 9 Juixianyan Square,
Jiangbei District, Chongqing
October 11,
2021
28
Securities Branch of Huatai
Securities in Ali Cloud
Building, Houhai, Shenzhen
Securities Branch of Huatai
Securities in Zhongxin Road,
Houhai, Shenzhen
Units 1203, 1205 and 1206,
Xizhilang Building, No. 3033
Zhongxin Road, Weilan Coast
Community, Yuehai Sub-
district, Nanshan District,
Shenzhen
October 19,
2021
29
Securities Branch of
Huatai Securities in
Caochangmen Street,
Nanjing
Securities Branch of Huatai
Securities in Qingliangmen
Street, Nanjing
Room 1901, No. 39
Qingliangmen Street, Gulou
District, Nanjing
October 26,
2021
30
Securities Branch of Huatai
Securities in Jiefang Road,
Jinan
Securities Branch of Huatai
Securities in Jiefang Road,
Jinan
Floor 1 East, Dongyuan Building,
No. 30 Jiefang Road, Lixia
District, Jinan
October 29,
2021
31
Securities Branch of Huatai
Securities in Qianhai,
Shenzhen
Securities Branch of Huatai
Securities in Qianhai,
Shenzhen
Rooms 101, 102, 201, 202, 301,
402, Building B7, Qianhai
Shenzhen-Hong Kong Fund
Town, No. 128 Guiwan 5th
Road, Nanshan Sub-district,
Qianhai Shenzhen-Hong Kong
Cooperation Zone, Shenzhen
December
15, 2021
32
Securities Branch of Huatai
Securities in Donghe
District, Baotou
Securities Branch of Huatai
Securities in Huanghe
Street, Baotou
No. 87 Huanghe Street, Rare
Earth Development Zone,
Baotou, Inner Mongolia
Autonomous Region
December
13, 2021
33
Securities Branch of Huatai
Securities in Chuangxin
Avenue, Hefei
Securities Branch of Huatai
Securities in Chuangxin
Avenue, Hefei
Room 102, Bona Building, No.
2777 Chuangxin Avenue, High-
tech District, Hefei
December
9, 2021
34
Securities Branch of Huatai
Securities in Chaoyang
North Road, Shiyan
Securities Branch of Huatai
Securities in Chaoyang
Middle Road, Shiyan
No. 29 Middle Chaoyang Road,
Maojian District, Shiyan
December
16, 2021
35
Securities Branch of Huatai
Securities in Huahai East
Road, Huaian
Securities Branch of Huatai
Securities in Huahai East
Road, Huaian
Shops 1004-1006, HSBC Central
Plaza and Room 801-814,
Building 1, HSBC Central Plaza,
Huaian,
December
14, 2021
HUATAI SECURITIES
92
No.
Name of the branch before
relocation
Name of the branch after
relocation Address after relocation
Issue Date
of License
36
Securities Branch of Huatai
Securities in Hubu Street,
Nanjing
Securities Branch of Huatai
Securities in Minzhi Road,
Nanjing
12/F, Building N, Nanjing
Zendai Himalaya Center, No. 2
Minzhi Road, Yuhuatai District,
Nanjing
December
14, 2021
37
Securities Branch of Huatai
Securities in Renmin Road,
Rudong, Nantong
Securities Branch of Huatai
Securities in Jianghai Road,
Rudong, Nantong
South to 4/F, Room 101, Central
Plaza, No. 2 Jianghai East
Road, Chengzhong Sub-
district, Rudong County
December
14, 2021
38
Securities Branch of Huatai
Securities in Minzu Avenue,
Wuhan
Securities Branch of Huatai
Securities in Minzu Avenue,
Wuhan
No. 1 Minzu Avenue, Hongshan
District, Wuhan
December
28, 2021
39
Securities Branch of Huatai
Securities in Pusi Road,
Nanjing
Securities Branch of Huatai
Securities in Pukou Avenue,
Nanjing
Room 3004, Building 1, No. 11
Pukou Avenue, Jiangpu Sub-
district, Pukou District, Nanjing
December
29, 2021
3. Standardization of accounts such as unqualified accounts, judicially frozen accounts, risk
disposal accounts, and pure fund accounts
As at December 31, 2021, the Company had 4,139 unqualified securities accounts, 2,724 judicially frozen
securities accounts, 84,309 risk disposal securities accounts, and 721,538 pure capital accounts.
Account standardization has reached the following quality standards: (1) Except for restricted use of
dormant securities accounts, remaining unqualified securities accounts, judicially frozen accounts, risk
disposal accounts, etc., the accounts engaging in normal trading activities are all qualified accounts. (2)
Regular comparison of funds and securities account information was made to verify the consistency of key
information such as customer names and numbers to prevent the addition of unqualified accounts. Key
information inconsistencies due to special circumstances such as differences in information rules between
the depository bank and the registered company or unusual word processing have been explained on a
case-by-case basis.
Relevant measures for long-term and standardized management of accounts: the daily management of
accounts was strengthened and the real-name system requirements for account business was strictly
implemented. Through face recognition technology, combined with ID card readers, public security network
verification, mobile phone number verification by relevant operator, the Group has strengthened investor
identity information identification. It further improved the customer file management system, built a unified
management platform by protocol, promote the optimisation of comprehensive account management
functions, and continue to improve the long-term management mechanism for standardized accounts.
III. DISCUSSION AND ANALYSIS OF THE COMPANY’S FUTURE DEVELOPMENT
(I) Competition landscape and trend of the industry
At present, the long-term upward trend of China’s economy continues to consolidate. Under the major
strategic deployment of accelerating the establishment of a new “dual circulation” development pattern in
which domestic economic cycle plays a leading role with both the domestic and international economic
cycles promoting each other, the capital market plays an increasingly prominent hub role in promoting
the high circulation among technology, capital and the real economy, and the securities industry, as an
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important participant in the capital market, will also embrace major strategic opportunities and broad
development opportunities.
First, the comprehensive deepening of the reform of the capital market will provide a broader development
space for the securities industry. In recent years, the comprehensive deepening reform of the capital market
has accelerated, and market-oriented reform measures have been implemented one after another. With
increasing inclusiveness in the capital market system and steady enhancement of the competitiveness
of market entities, the positive trend of the market ecology has been continually consolidated. Under the
policy background of officially implementing the new Securities Law, comprehensively implementing the
registration system reform, increasing the proportion of direct financing, and establishing a normalized
delisting mechanism, the capital market in China has initiated a new stage with the full optimization of
fundamental systems and the reform and development for the full restructuring of the market ecosystem.
Moreover, the securities industry will continue to benefit from the policy dividends released by the capital
market reform.
Second, the new pattern of institutional two-way opening up will drive the securities industry to transform
in the direction of high-quality development. Under the background of accelerating two-way opening up,
the supply of products and supporting systems for cross-border investment will continue to be enriched
and cross-border investment channels will continue to be optimized and expanded. The adjustment and
differentiation in the industry’s competitive landscape will promote securities companies to accelerate the
enhancement of comprehensive strength, optimize products and improve capabilities on serving the real
economy and investors. Oriented by customer needs, we will actively expand the depth and breadth of our
business and services, build a systematic and platform-based comprehensive strength, and transform to a
comprehensive financial service provider with complete business chain, industrial chain and service chain,
which has become the only way for large securities companies to achieve high-quality development.
Third, digital and intelligent transformation will reshape the business operation model and service
ecology of the securities industry. In recent years, with highly value in and widely application of Fintech in
the securities industry, leading financial institutions at home and abroad have increased investment in
technological innovation, seized the development opportunities brought about by Fintech empowerment,
built an open and integrated Fintech development ecosystem, and promoted a comprehensive upgrade of
the customer service system to create core competitive advantage. With active utilization of digitalization
and intelligent thinking to comprehensively transform business models and management modes, we have
achieved the in-depth integration of Fintech and business development, which will be an effective way for
securities companies to enhance comprehensive financial service capabilities and establish a new round
of innovative growth models.
(II) The Company’s development strategy
1. Strategic vision: Striving to become a first-class investment bank with both domestic advantages and
global influence, and a financial institution with international competitiveness, brand influence and system
importance.
2. Values and operation philosophy: By adhering to the core values of “high efficiency, integrity, stability and
innovation” and committing to the operation philosophy of “centered on customer services, oriented by
customers’ needs and purposed on customer satisfaction”, to be accountable to all clients, shareholders,
staff and society to achieve harmony and unity.
3. Strategic orientation: By adhering to the development ideas of marketization and openness and relying
on platform-based operation as the core to create a brand-new business model of two-pronged, cross-
border linkage and ecological interaction of wealth management and institutional services with technology
empowerment; implementing a differentiated competitive tactic of “investment banking gene + full
business chain” and with high-level investment in strategic fields to build core competitiveness of future-
oriented digital and intelligent development and develop significant leading edge and brand influence in
key customer groups, key industries and key regions with an commitment to being a pioneer of industry
reform and innovation and a promoter of sustainable development to become a first-class investment
bank with innovative vitality and technological characteristics.
HUATAI SECURITIES
94
(III) Business operation plan
Please refer to “Management Discussion and Analysis and Report of the Board” in this report.
(IV) The Company’s capital needs to sustain the current business and complete the
ongoing investment projects
As of the end of the Reporting Period, the Company was at the forefront of the industry in terms of total
assets, net assets, net capital and other indicators. The Company has built an assets & liabilities and
liquidity management system that not only meets the Company’s strategy and regulatory requirements but
is also favourable for the development of businesses through constantly optimizing allocation of assets and
liabilities. During the Reporting Period, the Company enhanced the management of capital, liabilities and
business within the industry, improved its financing ability, optimized the structure of assets and liabilities
and lower the financing costs by constantly expanding the financing sources and various bond financing
channels. The Company realized liquidity matching of major assets and liabilities by enhancing the liquidity
arrangement of assets to guarantee the balance of gross volume and reasonable structure of the assets
and liabilities of the Company and realize dynamic equilibrium of security, mobility and profitability, so as to
ensure that the capital strength of the Company matches its status in the industry.
(V)Potential risks (including the implementation of overall risk management and
the investment in compliance risk control and information technology)
1. Overview of risk management
The Company attached great importance to risk management. According to regulatory requirements
and the actual situation of business development, the Company established a relatively comprehensive
overall risk management system based on the core concepts of full staff engagement, full coverage
and full penetration. The Company has a solid and effective risk management framework with clearly
defined responsibilities and staff at all levels performing their duties effectively; the Company worked
out a risk appetite and tolerance system, which is organically integrated with the development strategy,
and established a multi-level comprehensive risk management system covering all aspects of business
operation and management; in addition, the Company vigorously promoted the construction of group-wide
risk-management technology system and established centralized, time-based, quantitative and penetrable
pillars for risk management technologies, to improve the effectiveness of risk management of the Group
and further strengthen the Group’s overall risk identification, quantitative evaluation and risk control
capabilities. The Company incorporated its subsidiaries into the overall risk management system of the
Group, explored the construction of effective risk management model for subsidiaries, vigorously deepened
the management mindset of centralized and unified professional risk lines on a look through basis, and
built a professional risk management system. The overall risk management system of the Company ran
effectively, which earnestly guaranteed the continuous and healthy development of various businesses of
the Company.
During the Reporting Period, with focuses on business risks management and control and leveraging
consolidated statement supervision, the Company comprehensively pushed forward various risk
management tasks in a digital manner. The Company further strengthened risk assessment and control in
key businesses and areas by thoroughly investigating the sources of business risks, and enhanced business
forward-looking analysis and bottom-line control. The Company further strengthened the construction of
cross-border integrated risk management system to provide solid safeguard for the internationalization
of the Group. Furthermore, the Company adhered to technology empowerment, promoted the digital
transformation of risk management to create a systematic, platform-based and integrated risk
management platform at home and abroad and continuously improved capabilities and efficiency on risk
management and control.
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2. Risk management structure
Board of Directors
Senior ManagementChief Risk Officer
Other
Departments
All
Branches
All
Subsidiaries
Supervisory
Committee
The risk management organizational structure of the Company covers five major parts: the Board and
Compliance and Risk Management Committee; Supervisory Committee; the Senior Management and
Risk Control Committee; Risk Management Department and various professional risk management
departments; other departments, branches and subsidiaries.
The Board is ultimately responsible for the overall risk management and is responsible for reviewing and
approving the basic system relating to the overall risk management of the Company, approving the risk
appetite, risk tolerance and major risk limits of the Company, and reviewing periodic risk assessment
reports of the Company. The Compliance and Risk Management Committee is set up by the Board to
undertake risk management responsibilities including reviewing and making recommendations on overall
risk management targets and fundamental policies; evaluating and making recommendations on the risks
of major decisions which require the Board’s review, as well as the solutions to these risks; reviewing and
making recommendations on risk assessment reports which require the Board’s review.
The Supervisory Committee of the Company is responsible for supervising overall risk management,
supervising and inspecting the Board and the senior management on the performance of their duties of
risk management, and urging them to make rectifications. Based on the authorization and approval of the
Board and the operation objectives of the Company, the senior management is specifically responsible
for the implementation of risk management and assumes the primary responsibility for overall risk
management. Upon authorization of the senior management, the Risk Control Committee under the senior
management is mainly responsible for the decision-making on risk management matters in the course of
operation and authorizing on risk undertakings in various business lines. Chief risk officer of the Company is
responsible for leading the overall risk management of the Company.
The Company appoints the risk management department to perform the overall risk management duties
and take the lead in managing the market risk, credit risk and operational risk of the Company; appoints
the capital operation department to take the lead in managing the liquidity risk of the Company; appoints
the information technology department to take the lead in managing the information technology risk
of the Company; and appoints the strategic development department to take the lead in managing
the reputation risk of the Company. Other departments, branches and subsidiaries of the Company are
responsible for the management of various risks in their respective lines, implementing various policies,
procedures and measures formulated by the Company and various leading professional risk management
departments, accepting guidance from various leading risk management departments and assigning the
Risk
Management
Department
Capital
Operation
Department
Information
Technology
Department
Strategic
Development
Department
Other
Professional
Risk
Management
Department
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risk management duties and implementation responsibilities. The audit department incorporates overall
risk management into the audit scope, makes independent and objective review and evaluation on the
adequacy and effectiveness of overall risk management, and is responsible for taking the lead or entrusting
external professional institutions to evaluate the overall risk management system of the Company regularly.
3. Market Risk
Market risk refers to the risk of asset loss of the Company resulting from fluctuations in risk factors, including
stock prices, interest rates, exchange rates and commodities.
The Company adhered to the concept of creating value through transactions, controlling risks through
hedging in controlling risk exposures, and managed the market risk of holding assets through various risks
control measures. The Company has built up a unified risk limitation system to control business risks from
various aspects, such as Market Value at Risk (VAR), stop-loss, stress testing, sensitivity, etc. The Company
also established a pressure testing system to identify and prevent various extreme risks and continuously
improve risk response capabilities. In respect of investments in equity securities, the Company continued to
promote investment transformation towards diminishing orientation, and flexibly adjusted hedging positions
according to market changes, while ensuring the downside risks of assets controllable. In respect of fixed-
income securities investment, the Company strictly control duration of credit bond portfolios and effectively
hedged interest rate risk of bond portfolio with interest rate swaps, treasury futures and other interest rate
derivatives. In respect of derivatives business, the Company adopted market neutral strategy for both
OTC derivatives business and market making business for exchange-traded options, and controlled the
Greeks values (such as Delta, Gamma, Vega, etc.) exposure risks within acceptable limits. In respect of OTC
derivatives business, the Company established management standards such as incorporating targets into
transaction list, performance guarantee ratio of counterparty, the liquidity and concentration of transaction
targets, etc., to effectively prevent market risks and counterparty default risk.
Market Value at Risk (VAR) of the Company
Currency: RMB
Forward-looking Period: 1 day; Confidence: 95%; Historical Analogical Method; Unit (Ten Thousand Yuan)
The Company The Group
As at the
end of 2021
As at the
end of 2020
As at the
end of 2021
As at the
end of 2020
Equity-sensitive Financial
Instruments
15,177
6,711
25,047
14,726
Interest-sensitive Financial
Instruments
2,298
4,887
2,528
6,498
Commodity-sensitive
Financial Instruments
201
153
294
236
Overall Portfolio Risk Value
15,803
8,844
26,175
18,691
Source: Internal statistics of the Company
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During the Reporting Period, Sequence Descriptive Statistics of Market Value at Risk (VAR) of the
Company
Source: Internal statistics of the Company
Currency: RMB
Forward-looking Period: 1 day; Confidence: 95%; Historical Analogical Method; Unit (Ten Thousand Yuan)
At the beginning
of the period
At the end of
the period
Maximum
value
Minimum
value
The Group 17,656 26,175 26,573 11,303
The Company 8,170 15,803 19,892 5,964
4. Credit risk
Credit risk refers to the risk of asset loss of the Company resulting from the default of a product or bond
issuer or counterparty (customer).
In terms of financing business, during the Reporting Period, the Company’s margin financing and
securities lending business has, benefited from active market transactions, grown consistently. The
Company implemented strict customer and target management, continuous dynamic monitoring, timely
risk resolution and other full-process control measures to control business credit risks and to keep the
amount to be recovered for the margin financing and securities lending business remained at a low level.
Meanwhile, during the Reporting Period, the Company researched and established a business risk response
mechanism for overheating markets, and improved the management system and retrospective inspection
requirements for various types of differentiated customers and large customers; in addition, the Company
prudently carried out stock pledge business, and strengthened business risk review to strictly control
business risk exposure. In terms of bond investment business, the Company has established a unified
management system for issuers, through which it can achieve aggregate monitoring of the total investment
of the same issuer in all business units of the Group. Moreover, the Company further improved the bottom-
line control over credit bond investment in key industries to enhance the monitoring and pre-warning of
bond positions. In terms of counterparty management, during the Reporting Period, the Company promoted
the establishment of a unified management system for counterparties by further expanding the coverage
of the unified management of counterparty credit lines at the Group level, in bid to incorporating all the
entrusted funds for asset management into the unified management of the Group’s counterparties.
5. Liquidity risk
Liquidity risk refers to the risk that the Company cannot obtain sufficient funds at reasonable costs in time
to repay due debts, perform other payment obligations and meet the capital requirements for carrying out
ordinary businesses.
The Company has always attached importance to liquidity safety, preferred a “sound and safe” liquidity risk
preference, followed the general principle of comprehensiveness, importance, applicability, effectiveness,
prudence and foresight, and continued to strengthen the identification, measurement, monitoring and
control mechanisms of liquidity risks through a management model of centralized management and
hierarchical prevention and control, to improve the Company’s liquidity risk management capability. On
the basis of controlling overall liquidity risks, the Company identified potential liquidity risks of all business
lines by regular analysis of existing liquidity risk and ad-hoc new business assessment and proposed
targeted control measures. The Company has established a liquidity indicator analysis framework including
cash flow, and appropriately set risk limits and implemented daily monitoring through the information
technology system, to improve the monitoring frequency and control level of liquidity risks. At the same
time, the Company continued to improve the capital planning system by strengthening capital position
management and establishing a liquidity daytime monitoring system to keep abreast of capital usage
in business and day-time payment progress in a timely manner, further moving forward the frontline of
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liquidity risk prevention and control. The Company regularly and occasionally conducted special stress tests
on liquidity risks to assess the Company’s liquidity risk tolerance under stress from the perspective of cash
flow and liquidity indicators, and took targeted measures to improve the Company’s liquidity risk resilience.
In order to ensure that liquidity needs can be met in a timely manner under stress, the Company has
established high-quality liquid asset reserve of an appropriate scale based on risk preferences. At the same
time, it has expanded its debt financing channels and quotas from multiple perspectives, and continued
to improve the Company’s emergency financing capabilities. In addition, the Company leveraged the
consolidation supervision to strengthen the subsidiary liquidity risk guidance, in particularly to conduct
vertical management on its Hong Kong subsidiaries with emphasizes on their liquidity management, to
improve the subsidiaries’ response capability to liquidity risks and the Group’s prevention and control of
overall liquidity risks. During the Reporting Period, the Company’s liquidity coverage ratio (LCR) and net
stable funding ratio (NSFR) continued to remain at a level that can meet regulatory requirements and far
beyond the safety requirements.
6. Operational risks
Operational risk refers to risk on the Company’s losses caused by inadequate or problematic internal
procedures, personnel, system or external events.
During the Reporting Period, the Company continued to strengthen the accuracy and precision of
operational risk identification and improved the quality and effectiveness of the Group’s operational
risk control with various channels. The Company, taking horizontal common areas and vertical cross-
departmental processes as the starting point, broke down barriers between departments and focused
on the mechanism optimization and improvement driven by mutual problems. The Company analyzed
rules on risk identification in terms of key business and important links, strengthened the reverse proactive
identification of operational risks; carried out cleansing and remodeling of essential data based on
operational risk management tools and further refined control requirements for the three major tools.
Moreover, the Company also continued to improve the risk management mechanism for new businesses,
enhanced its quality control and traceability management, constantly directed subsidiaries to further
improve management mechanism on new businesses from aspects of materials and evaluation content,
retrospective management and evaluation template for new businesses; and made efforts to improve
the normalized and standardized management of business continuity to enhance the effectiveness of
disruption prevention and control and emergency response.
7. Compliance risk
Compliance risk refers to exposure to property loss or business reputation loss as a result of bearing
legal responsibility, supervisory measures or disciplinary sanctions imposed on securities companies
due to violation of laws, regulations and standards by operational management or professional conduct
performed by securities companies or their employees.
During the Reporting Period, the Company continued to improve its compliance management system in
terms of system development, working mechanism and staff management, so as to effectively promote the
full coverage of compliance management. The Company was one of the first to promote the construction
of “digital compliance” through various measures, and gradually pursued the independent control of the
core compliance system. The Company accelerated the development of stereoscopic compliance, kept up
with innovation trends and regulatory dynamics, and prudently carried out compliance reviews to promote
the stable implementation of new businesses and new products; proactively researched and actively
promoted compliance control of key businesses through compliance assessment, process arrangement,
prompt supervision, and meeting attendance. In addition, the Company also continued to optimize the
management mechanism for ethical conduct of staff to accelerate the construction of industry culture, and
enhanced control on staff investment behavior to promote professional integrity; intensified compliance
inspections based on problems and risks, focused on key businesses and latent risks, and continued to track
and implement rectification status; and improved the group-wide compliance management mechanism,
in particularly its overseas subsidiaries to strengthen compliance communication and control among
members of the Group.
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8. Information technology risk
Information technology risk refers to exposure to losses caused by the failure of the information system to
continuously ensure the stable, efficient and safe operation of transaction and business management in
terms of business realization, timely response, solving capacity and data security, resulting from technical
problems or data leakage out of internal or external reasons.
The business lines and the middle and back office management of the Company are highly depended on
the information technology system, which has become the key support to the operation of businesses of
the Company. During the Reporting Period, the Company continued to increase investment in information
technology to improve the management system and process of information technology risks and
strengthened the investigation and governance for information technology risks, further improving the
effectiveness of risk management. The Company formulates information system emergency technical plans
for information system and emergency response procedures for information security incident, and conducts
regular or irregular assessments and drills. During the Reporting Period, the Company’s information system
was operated safely and stably. No major information technology risk events occurred.
9. Reputational risk
Reputational risk mainly refers to exposure to risks that are detrimental to the normal operation of the
Company exposed by the negative judgments from relevant media caused by the Company’s operation,
management and other conducts or external events.
During the Reporting Period, the Company’s reputational risk management mechanism was running steadily
without occurrence of any significant reputational risk events. Focusing on its strategy and key business,
the Company continued to intensify its monitoring and handling of reputational risks, which created a good
public sentiment for the Company’s development. At the same time, the Company strengthened group
management, prior management and internal publicity, further enhancing its awareness on preventing and
the ability on response to reputational risk.
10. Model risk
Model risk refers to the risk of adverse consequence or loss to the Company’s businesses resulting from
incorrect or inappropriate model design, development or use.
During the Reporting Period, the Company established risk management policies and mechanisms based
on the life cycle of model and constantly promoted model risk management and control by approaches
and measures including model validation, assessment and monitoring. The Company continuously
developed and improved the model risk management system adaptive to its own business development
while optimizing risk management system and organizational structure as well as the model’s information
and data management module function. The Company’s model risk management was operated safely and
stably. No major model risk events occurred.
11. Implementation of overall risk management of the Company during the Reporting Period
During the Reporting Period, according to the actual situation of the Company and industrial regulatory
requirements, the Company continued to improve the overall risk management system and continuously
deepened the implementation of various requirements on the overall risk management. The Company was
approved to formally implement the pilot project of consolidated statement supervision, under which, the
Company, in accordance with regulatory regulations and requirements, continuously carried out various
tasks to further enhance the Company’s risk management and control capabilities.
For the full coverage of risks, the Company established and improved a comprehensive risk management
system of the Group with “high engagement, full coverage and deep penetration” as the core idea, and with
“collectivization, specialization and platformization” as the main approach. The current risk management
of the Company has already covered all subsidiaries (domestically and globally), branches and business
lines for major risk types. The Company established a risk management system for subsidiaries by
combining centralized management and control and hierarchical authorization, raised clear requirements
HUATAI SECURITIES
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to subsidiaries on issues including the construction of the risk management system, risk management
policies and indicator system, risk management personnel allocation and assessment and risk reports,
and set up differentiated and detailed rules for risk management. The risk management department of
the Company arranged specialized risk management personnel for various business lines and conducted
risk identification, monitoring, assessment, decisions, response and reporting before, during and after
each operation. For managing market risk, credit risk, liquidity risk, operational risk, reputational risk and
information technology risk, the Company has assigned leading management departments for each of
them. The coverage of various professional risk management has reached the level of subsidiaries.
For the surveillance of risks, the Company continued to improve the promptness and effectiveness of risk
surveillance and monitoring. The Company established a multi-level indicator and limitation system for
risk appetite, risk tolerance, professional risk and business risk, and accurately calculated, dynamically
monitored and timely alerted risk indicators with systematic methods. During the Reporting Period, the
Company continuously promoted the system construction relating to risk indicator monitoring functions,
and realized the centralized and unified monitoring on various risk indicators.
For the measurement of risks, the Company realized the measurement on the market, credit and liquidity
risks, and continuously strengthened the risk measurement model management. During the Reporting
Period, the Company regularly carried out evaluation and verification of valuation pricing model and risk
measurement model, and continuously perfected the measurement model to improve the accuracy of
measurement results. The Company further strengthened the management of the valuation pricing model
and the risk measurement model to effectively control the model risk.
For the analysis of risks, the Company established a multi-level risk reporting system, which clarified
the reporting mechanism and procedure requirements, and further strengthened the depth and
comprehensiveness of risk analysis during the Reporting Period, so as to ensure the timely and effective
transfer of risk information among various levels and departments. The Company set up a relatively
comprehensive pressure testing system. The Company’s pressure test covers capital regulatory indicators,
financial indicators and all risk quotation indicators and has been applied throughout the procedures of
day-to-day risk management. During the Reporting Period, the Company further perfected and enriched
the library of stress test scenarios, and strengthened the research on the trigger mechanism of irregular
stress tests, which has been applied to various management decisions of the Company.
For risk response, the Company has, based on risk assessment and alert results, formulated certain
response strategies including risk avoidance, reduction, transfer and tolerance matched with different risk
appetites, and adopted response measures such as asset impairment, risk hedging, capital supplement,
scale adjustment, asset and liability management. At the same time, the Company developed practical
response mechanisms and schemes for various risks, which could ensure the Company has the capability
to react to and resolve various risks it encounters.
The Company provided support and protection for its comprehensive risk management in aspects of
cultivating a culture, developing policies, increasing investment, improving the system and recruiting talents.
The Company attached great importance to the construction of risk management culture and strengthened
the promotion of risk management ideas. During the Reporting Period, the Company continued to carry out
risk management training and risk management culture publicity activities covering all employees, and
further promoted the implementation and optimization of the risk management assessment mechanism
of the Group, giving full play to the guiding role of risk assessment. The Company established a three-
dimensional risk management system at the Board of Directors level, senior management level and
business level, and developed a regular evaluation and revision mechanism for the system, through
which the implementation of the system was included into the risk assessment. The Company attached
great importance to risk management and information technology system construction, and provided
sufficient resources to support and protect the risk management and system improvement. The Company
emphasized the effective combination of risk management and information technology system, and
firmly followed the direction of digital transformation to push forward its establishment of a platform for
risk management technology with group-wide coverage and deep penetration, empowering the risk
management. The Company intensified its efforts in training and engaging risk management personnel,
enabling the risk management personnel of the Company continuously meet regulatory requirements.
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12. The investment of the Company in compliance risk control during the Reporting Period
(VI) Establishment of the monitoring and complementary mechanism of the
Company’s dynamic risk control indicators
1. Establishment of the monitoring and complementary mechanism of the dynamic risk
control indicators
The dynamic risk control index monitoring and replenishment mechanism is one of the important measures
for the Company to control risks. During the Reporting Period, the Company solidly pushed forward
the monitoring and pre-warning of various risk control indicators, continuously improved the dynamic
monitoring mechanism for risk control indicators mainly based on net capital and liquidity and assigned
full-time operators to conduct daily monitoring, duly report and handle various abnormalities; with stricter
corporate monitoring standards as the monitoring threshold, formed a three-stage risk control indicator
monitoring standard based on the regulatory standards and pre-warning standards for dynamic risk
The investment of the Company in compliance
risk control
The investment of the Company in IT
2021
2021
2020
2020
2019
2019
2018
2018
80,000
60,000
40,000
20,000
0
250,000
200,000
150,000
100,000
50,000
0
The amount of total investment
The amount of total investment
22,176.49
108,499.71
38,731.34
142,460.61
45,200.28
64,815.59
176,478.19
CAGR
+42.98%
CAGR
+27.10%
222,756.04
The Company attached great importance to its
compliance operation and risk management by
continuously enhancing the construction of the
compliance risk control system, optimizing the
composition of compliance risk control personnel,
and increasing investment in the construction of
the compliance risk control system to improve our
professional abilities in compliance risk control with
technology as the driving force. The Company’s
investments in compliance risk control mainly
include: investment in compliance risk control
personnel, the daily operating costs of compliance
risk control and investment in construction of
compliance risk control related systems. In 2021,
on Parent Company basis, the total investment in
compliance risk control of the Company amounted
to RMB648,155,900.
13. The investment of the Company in information technology during the Reporting Period
The Company has always valued innovation in information technology, adhered to the concept of “return
to the origin of financial services with technology
empowerment to achieve the co-creation of
technology and business” and focused on the
target of “client’s success, business innovation,
operation optimization and employee empowering”
to comprehensively promote the Company’s digital
transformation and strive to creating a leading core
technology competitiveness in the forefront of the
industry. The Company’s investments in information
technology mainly include: IT capital expenditure,
daily expenses for operation and maintenance
of IT, leasing and depreciation cost of computer
rooms, circuit leasing cost and remuneration of IT
personnel. In 2021, on Parent Company basis, the
total investment in information technology of the
Company amounted to RMB2,227,560,400.
Source: Regular reports of the Company
Source: Regular reports of the Company
Unit: Ten Thousand Yuan Currency: RMB
Unit: Ten Thousand Yuan Currency: RMB
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control indicators specified by the CSRC, to launch corresponding reporting route and response plan
according to different pre-warning level and ensure that the net capital, liquidity and other risk control
indicators always comply with the regulatory requirements; constantly optimized the function of the net
capital and liquidity dynamic monitoring system to ensure that the dynamic monitoring system can
effectively support the monitoring of the Company’s net capital, liquidity and other risk control indicators.
The Company has established a dynamic complementary mechanism for net capital and liquidity. The
Company’s complementary pathways of net capital include but not limited to capital fund raising for
increase in capital and share, issuance of subordinated bonds, compression of highly-risky investment
types and scale, and reduction or suspension of profit distribution, etc. The Company’s complementary
pathways of liquidity include but not limited to external financing (interbank borrowing, bond repurchase,
corporate bond, short-term corporate bond, subordinated debt, short-term financing bill, income receipts,
refinancing integrated fund, gold lease, etc.), realization of part of the liquid reserve, control or adjustment of
business scale, etc.
2. Conditions of risk control indicators triggering the pre-warning criteria or not conforming to
the required standards, and corrective measures adopted and rectification effects during the
Reporting Period
During the Reporting Period, the Company conducted prospective estimation or pressure tests of risk control
indicators for profit distribution, capital increase in and guarantee provision to subsidiaries, engagement
in new businesses and other major events. The above-mentioned matters were implemented under the
condition that the analysis and test results meet the regulatory requirements. During the Reporting Period,
main risk control indicators of the Company were all in line with the regulatory requirements, and there were
no such circumstances where the risk control indicators violated the pre-warning standards or were not in
compliance with the provided standards.
IV. THERE WERE NO CIRCUMSTANCES IN THE COMPANY ’S FAILURE
TO MAKE DISCLOSURE IN ACCORDANCE WITH THE STANDARDS DUE
TO INAPPLICABILITY OF THE STANDARDS REQUIREMENTS OR SPECIAL
REASONS INCLUDING NATIONAL SECRETS AND TRADE SECRETS AND
THE EXPLANATIONS OF REASONS THEREOF
(I) Share capital
For the Company’s share capital for the year ended December 31, 2021 and the details of changes therein,
please refer to “Changes in Shares and Shareholders” in this report.
(II) Arrangement of pre-emptive rights
According to the provisions of the PRC laws and the Articles of Association, none of the shareholders of the
Company has any pre-emptive rights.
(III) Repurchase of shares by the Company
In active response to the policies of the national government and regulatory authorities, according to the
requirements of relevant laws, regulation and normative documents and based on the confidence in the
sustainable and steady development of the Company in the future and the reasonable judgment on the
stock value of the Company, the Company repurchased A shares from the secondary market as source of
V. OTHER DISCLOSURES
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shares for the restricted share incentive scheme in an effort to enhance investors’ confidence, safeguard
shareholders’ rights and interests, and at the same time, deepen the mixed-ownership reform, establish a
market-oriented mechanism for benefits and risks sharing with employees, and further stimulate the vitality
of the Company. For the repurchase of shares by the Company, please refer to “Changes in Shares and
Shareholders” and “Specific Implementation of Share Repurchase in the Reporting Period” in this report.
(IV) Sufficient public float
As at the latest practicable date before printing of this annual report, based on the information available
to the public and as far as the Directors are aware of, the Directors believe that the Company’s public float
satisfies the requirements for minimum public float under Rule 8.08 of the Hong Kong Listing Rules.
(V) Directors’ interests in competing business with the Company
None of the Directors of the Company has any interest in business that competes or is likely to compete,
either directly or indirectly, with the business of the Company.
(VI) Service contracts of Directors and Supervisors
According to rules 19A.54 and 19A.55 of the Hong Kong Listing Rules, the Company has entered into a
contract with each of the Directors and Supervisors in respect of (among other matters) compliance of
relevant laws and regulations, as well as the Articles of Association and provisions on arbitration. Save as
disclosed above, none of the Directors or Supervisors of the Company has entered into or is proposed to
enter into any service contracts with the Company in their respective capacities as Directors/Supervisors
(other than contracts expiring or terminable by the employers within one year without the payment of
compensation other than statutory compensation).
(VII) Directors’ and Supervisors’ interests in material contracts, transactions or
arrangements
During the Reporting Period, the Directors or Supervisors of the Company or entities that are connected to
them did not have material interests, whether directly or indirectly, in any material contract, transaction or
arrangement entered into by the Company or its subsidiaries.
(VIII) Permitted indemnity provision–liability insurance for Directors, Supervisors
and senior management
As authorized in 2014 annual general meeting, the Company has provided liability insurance for Directors,
Supervisors, senior management, and other relevant competent persons. Appropriate insurance coverage
has been arranged for Directors, Supervisors and senior management of the Company against potential
legal actions and liabilities that arise from performing their duties to reasonably avoid management and
legal risks faced by Directors, Supervisors and senior management of the Company and to promote the full
discharge of duties by the Directors, Supervisors and senior management of the Company.
(IX) Profile of Directors, Supervisors and senior management
For profiles of Directors, Supervisors and senior management of the Company, please refer to “Primary work
experience” under “Changes in shareholding structure and remuneration of current and resigned Directors,
Supervisors and senior management during the Reporting Period” in “Directors, Supervisors and Senior
Management” in the section headed “Corporate Governance” in this report.
(X) Remuneration policy
For the remuneration and share incentive scheme of Directors, Supervisors and senior management of the
Company, please refer to “Changes in shareholding structure and remuneration of current and resigned
Directors, Supervisors and senior management during the Reporting Period” and “Remuneration of the
Directors, Supervisors and Senior Management” under “Directors, Supervisors and Senior Management” in
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the section headed “Corporate Governance” in this report.
(XI) Share option scheme
The Company did not establish any share option scheme.
(XII) Major customers and suppliers
The Group provides services to a wide range of institutional and individual clients across various sectors. The
Group’s clients range from retail customers, wealth clients, high-net-worth individuals, institutional clients to
corporate clients, who are primarily located in China. The successful listing in Hong Kong and London and
smooth implementation of its deployment strategies in the international market will facilitate the Group in
carrying out its overseas operations, exploring customer resources and boosting for further development of
the Group’s businesses. In 2021, the revenue attributable to the five largest clients of the Group accounted
for less than 30% of the total operating revenue of the Group.
The Group has no major supplier due to the nature of its business
(XIII) Relationship with employees, customers, suppliers and persons with important
relationships
For details of the employees’ remuneration and training plans of the Company, please refer to “Remuneration
policy” and “Training programs” under “Information about the Staff of the Parent Company and Major
Subsidiaries at the end of the Reporting Period” in the section headed “Corporate Governance” in this report.
For the relationship between the Company and its major customers and suppliers, please refer to “Major
customers and suppliers” under “Other Disclosures” in the section headed “Management Discussion and
Analysis and Report of the Board” in this report.
(XIV) Business review
For analysis of business using key financial performance indicators, please refer to “Company Profile and
Key Financial Indicators” of this report.
(XV) Corporate governance
For the corporate governance condition of the Company, please refer to “Corporate Governance” of this
report.
(XVI)Tax relief
1. Shareholders of A Shares
According to the provisions in the Notice on Issues Regarding Differentiated Individual Income Tax Policy
for Dividends and Bonuses of Listed Company (Cai Shui [2015] No. 101) (
《關於上市公司股息紅利差別化個人
所得稅政策有關問題的通知》
(
財稅
[2015] 101
號
)) and the Notice on Issues Regarding the Implementation of
Differentiated Individual Income Tax Policy for Dividends and Bonuses of Listed Company (Cai Shui [2012]
No. 85) (
《關於實施上市公司股息紅利差別化個人所得稅政策有關問題的通知》
(
財稅
[2012] 85
號
)) jointly issued
by the Ministry of Finance, State Administration of Taxation and the CSRC, for individual shareholders of
the Company, if the term of shareholding (a period from the date when the individual acquires the listed
shares on public offering and transferring markets to the date one day before the shares are transferred
and settled) is within one month (inclusive), all the dividend and bonus incomes thereof are counted as
taxable income at the effective tax rate of 20%; if the term of shareholding is between one month and one
year (inclusive), temporarily, 50% of the dividend and bonus incomes are counted as taxable income at the
effective tax rate of 10%; if the term of shareholding exceeds one year, temporarily, the dividend and bonus
incomes are exempted from individual income taxes. When dividends and bonus incomes are distributed
by a listed company, such company, temporarily, shall not withhold or pay any individual income taxes
on behalf of the individuals whose term of shareholding is within one year (inclusive); instead, the taxable
incomes shall be calculated by a securities registration and settlement company based on the term of
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shareholding when the individual transfers those shares and the Company shall withhold and pay the taxes
through the securities registration and settlement company. For dividend and bonus incomes obtained by
securities investment funds from listed companies, the individual income taxes thereof are calculated and
levied pursuant to the provisions in the document of Cai Shui [2012] No. 85.
For QFII, according to the provisions in the Notice on Issues Regarding Withholding and Payment of
Corporate Income Taxes when PRC Resident Enterprises Distribute Dividends, Bonuses and Interests to the
QFII (Guo Shui Han [2009] No. 47) (
《關於中國居民企業向
QFII
支付股息、紅利、利息代扣代繳企業所得稅有關問
題的通知》
(
國稅函
[2009] 47
號
)) issued by State Administration of Taxation, the listed company withholds
and pays corporate income taxes at a uniform tax rate of 10%. If the dividend and bonus incomes obtained
by QFII shareholders are entitled to the treatment as stipulated in tax treaties (arrangements), application
for tax refund can be submitted to the governing tax authority after the acquisition of such dividends and
bonuses according to regulations.
According to the provisions in the Notice on Tax Policy Regarding Shanghai-Hong Kong Stock Connect Pilot
Programs (Cai Shui [2014] No. 81) (
《關於滬港股票市場交易互聯互通機制試點有關稅收政策的通知》
(
財稅
[2014] 81
號
))
issued by the Ministry of Finance, State Administration of Taxation and the CSRC, for the dividend and bonus
incomes obtained by investors (including enterprises and individuals) on Hong Kong market from investing
in A Shares listed on Shanghai Stock Exchange, the implementation of differentiated taxation is suspended
before Hong Kong Securities Clearing Company Limited meets the conditions to provide CSDC with the
investors’ identifications, terms of shareholding and other specific data. The listed company withholds
and pays the income taxes at the tax rate of 10%, which should be duly declared to the governing taxation
authority. For Hong Kong investors who are tax residents of foreign countries that have entered a tax treaty
with the PRC specifying an income tax rate for dividend and bonus incomes below 10%, the enterprises or
individuals can, by themselves or entrust a withholding agent to apply to the governing tax authorities of
the listed company for the treatment as stipulated in such tax treaties. The governing tax authorities shall
refund the taxes according to the discrepancy between the levied taxes and taxes payable based on the
rate specified in the tax treaty after verifying and approving the application.
For the qualified investors who invest in the GDR issued by the Company on London Stock Exchange and
comply with the relevant domestic and foreign regulatory rules (GDR Investors), according to the Corporate
Income Tax Law of the PRC (
《中華人民共和國企業所得稅法》
) and other relevant tax regulations, the Company
shall withhold and pay income taxes at a tax rate of 10%. Citibank and National Association, as the nominal
holders of domestic basic A Shares corresponding to GDR, receive the cash dividends distributed by the
Company. If the dividend and bonus incomes obtained by GDR Investors are entitled to the treatment as
stipulated in relevant tax treaties (arrangements), applications can be submitted to the governing tax
authority according to regulations.
For other institutional investors, the taxes on their dividends and bonus incomes shall be paid on their own.
2. Shareholders of H Shares
According to the provisions in the Notice by the State Administration of Taxation on Issues Regarding the
Administration of Individual Income Tax Collection after the Annulment of Document Guo Shui Fa [1993] No.
045 (Guo Shui Han [2011] No. 348) (
《國家稅務總局關於國稅發
[1993] 045
號文件廢止後有關個人所得稅徵管問題
的通知》
(
國稅函
[2011] 348
號
)), for the dividend and bonus incomes acquired by individual shareholders
as overseas residents from the issuance of shares in Hong Kong by domestic non-foreign investment
enterprises, the withholding agent shall legally withhold and pay the individual income taxes according
to item “interest, dividend and bonus income”. For the issuance of shares in Hong Kong by domestic non-
foreign investment enterprises, the individual shareholders as overseas residents can enjoy relevant tax
preferences according to the provisions in the tax treaty signed by the country to which the resident identity
belongs and the PRC and in the tax arrangements between Mainland China and Hong Kong (Macao).
According to relevant tax treaties and tax arrangements, the tax rates for dividends are normally 10%. To
simplify administration of tax collection, when the domestic non-foreign investment enterprises issuing
shares in Hong Kong distribute dividends and bonuses, the individual income taxes are generally withheld
at the tax rate of 10% without application. If the dividend tax rate is not 10%, individual income taxes shall be
withheld as per the following provisions: (1) for residents subject to tax rate below 10% pursuant to relevant
treaties, the withholding agent can apply related treatment under such treaties on behalf of the residents
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and the governing tax authority will refund the additional tax payments after approving the application;
(2) for residents subject to tax rate over 10% but lower than 20% pursuant to relevant treaties, when the
withholding agent distributes dividend and bonus, the individual income tax shall be withheld and paid at
the actual tax rate specified in the treaties and application for approval is not necessary; (3) for residents
from the country which did not enter into any tax treaty with the PRC and other situations, when the
withholding agent distributes dividend and bonus, the individual income tax shall be withheld and paid at
the tax rate of 20%.
According to the provisions in the Notice on Issues regarding Withholding of Enterprise Income Taxes when
PRC Resident Enterprises Distribute Dividends to Overseas Non-resident Enterprise shareholders of H Shares
(Guo Shui Han [2008] No. 897) (
《關於中國居民企業向境外
H
股非居民企業股東派發股息代扣代繳企業所得稅有關
問題的通知》
(
國稅函
[2008] 897
號
)) issued by the State Administration of Taxation, when Chinese resident
enterprises distribute annual dividends to overseas non-resident enterprise shareholders of H Shares for
2008 and subsequent years, the corporate income tax shall be withheld and paid at the uniform tax rate of
10%.
According to the provisions in the Notice on Tax Policy Regarding Shanghai-Hong Kong Stock Connect Pilot
Programs (Cai Shui [2014] No. 81) (
關於滬港股票市場交易互聯互通機制試點有關稅收政策的通知
(
財稅
[2014] 81
號
))
issued by the Ministry of Finance, State Administration of Taxation and the CSRC, for dividends and bonuses
acquired by Mainland individual investors by investing in listed H Shares on the Hong Kong Stock Exchange
via Shanghai-Hong Kong Stock Connect, such H Share companies shall withhold the individual income
tax at a tax rate of 20%. For dividends and bonuses acquired from Mainland securities investment funds
by investing in listed shares on the Hong Kong Stock Exchange via Shanghai-Hong Kong Stock Connect,
the individual income tax shall be levied as per above regulations. For dividends and bonuses acquired by
Mainland enterprise investors by investing in listed shares on the Hong Kong Stock Exchange via Shanghai-
Hong Kong Stock Connect, such H Share companies shall not withhold any income taxes on the dividends
and bonuses, and such income tax shall be declared and paid by the enterprises on their own. Meanwhile,
for the dividends and bonuses acquired by Mainland resident enterprises for continuous holding of H Shares
for 12 months, the corporate income tax shall be exempted according to laws.
According to the current practices of Inland Revenue Department of Hong Kong, no tax shall be levied for
dividends distributed by the Company in Hong Kong.
The shareholders of the Company shall pay relevant taxes and/or be entitled to tax reliefs according to the
above provisions.
(XVII) Environmental policies and performance of the Company
For the environmental policies and performance of the Company, please refer to “Environment and Social
Responsibility” in this report.
(XVIII) Compliance with relevant laws and regulations
As a public company listed at home and abroad, the Company abides, in a strict manner, by the
requirements of the laws, regulations and normative documents of domestic and foreign places where
the Company is listed including the Company Law, Securities Law, Regulation on the Supervision and
Administration of Securities Companies, Rules for Governance of Securities Companies, Code of Corporate
Governance for Listed Companies in China, Corporate Governance Code and Corporate Governance
Report in Appendix 14 of Hong Kong Listing Rules and the Articles of Association. The Company established
and perfected its rules and regulations to standardize the operation of the Company, and devoted itself
to maintaining and improving its sound market image. Please refer to “Suspected Violations of Laws and
Regulations by, Punishment on and Rectification of the Company and its Directors, Supervisors, Senior
Management, Controlling Shareholders and de facto Controllers” in the section headed “Major Events” in this
report for the punishment and public denouncement received by the Company during the Reporting Period.
(XIX) Reserves and distributable reserves
Please refer to the consolidated statements of changes in equity and Note 54 to the financial statements of
this report for changes in reserves and distributable reserves.
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(XX) Property and equipment and investment properties
Changes in properties and equipment and investment properties of the Group during the year are set out
separately in Notes 20 and 21 to the consolidated financial statements. As at December 31, 2021, the Group
did not own any investment properties or properties for development and/or for sale with one or more ratio
(as defined in the Rule 14.04(9) of the Hong Kong Listing Rules) over 5%.
(XXI) Management contracts
No contracts concerning the management and administration of the whole or any substantial part of the
business of the Company were entered into or existed during the year ended December 31, 2021.
(XXII) Donations
The Company actively performed its social responsibilities in 2021 by investing a total of RMB46,001,600 (2020:
RMB32,408,100) in public activities including public service advertising and charitable contribution.
(XXIII) Five-year financial highlight
For the highlight of operating results, assets and liabilities of the Group in the past five financial years, please
refer to “Key Accounting Data and Financial Indicators for the Past Five Years” under “Key Accounting Data
and Financial Indicators” in the section headed “Company Profile and Key Financial Indicators” in this report.
This summary does not constitute a part of the audited consolidated financial statements.
(XXIV) Auditors
1. Upon approval by the Company’s 2018 Annual General Meeting held on June 26, 2019, the Company
employed KPMG Huazhen LLP as the audit service institute of the Company and its holding subsidiaries
for the 2019 annual financial statements and internal control to issue A Share audit report and internal
control audit report; and employed KPMG as the audit service institute of the Company’s H Share to issue H
Share audit report. The audit service fee was capped at RMB5.50 million. In 2019, KPMG Huazhen LLP issued
a standard unqualified opinion audit report on the annual financial report prepared by the Company in
accordance with the China Accounting Standards for Business Enterprises. Certified public accountants
Cheng Hailiang and Qian Ruwen signed the report; KPMG issued a standard unqualified opinion audit report
on the annual financial report prepared by the Company in accordance with the International Financial
Reporting Standards. Certified public accountant Pang Shing Chor Eric signed the report.
2. Upon approval by the Company’s 2019 Annual General Meeting held on June 18, 2020, the Company
employed KPMG Huazhen LLP as the audit service institute of the Company and its holding subsidiaries for
the 2020 annual financial statements and internal control to issue A Share audit report, internal control audit
report and GDR audit report; and employed KPMG as the audit service institute for the Company’s H Shares
to issue H Share audit report. The audit service fee was capped at RMB6.00 million. In 2020, KPMG Huazhen LLP
issued a standard unqualified opinion audit report on the annual financial report prepared by the Company
in accordance with the China Accounting Standards for Business Enterprises. Certified public accountants
Cheng Hailiang and Qian Ruwen signed the report; KPMG issued a standard unqualified opinion audit report
on the annual financial report prepared by the Company in accordance with the International Financial
Reporting Standards. Certified public accountant Lee Lok Man signed the report.
3. Upon approval by the Company’s 2020 Annual General Meeting held on June 22, 2021, the Company
employed KPMG Huazhen LLP as the audit service institute of the Company and its holding subsidiaries for
the 2021 annual financial statements and internal control to issue A Share audit report, internal control audit
report and GDR audit report; and employed KPMG as the audit service institute for the Company’s H Shares
to issue H Share audit report. The audit service fee was capped at RMB6.00 million (of which the internal
control audit fee was capped at RMB0.50 million). In 2021, KPMG Huazhen LLP issued a standard unqualified
opinion audit report on the annual financial report prepared by the Company in accordance with the China
Accounting Standards for Business Enterprises. Certified public accountants Cheng Hailiang and Qian
Ruwen signed
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the report; KPMG issued a standard unqualified opinion audit report on the annual financial report prepared
by the Company in accordance with the International Financial Reporting Standards. Certified public
accountant Lee Lok Man signed the report.
4. Upon approval by the Company’s twenty-first meeting of the fifth session of the Board of Directors held on
March 30, 2022, the Company proposed to employ Deloitte Touche Tohmatsu Certified Public Accountants
LLP as the audit service institute of the Company and its holding subsidiaries for the 2022 annual financial
statements and internal control to issue A Share audit report, internal control audit report and GDR audit
report; and employ Deloitte Touche Tohmatsu as the audit service institute for the Company’s H Shares to
issue H Share audit report. The audit service fee was RMB4.20 million (of which the internal control audit fee
was RMB0.35 million). This issue is yet to be approved at the 2021 Annual General Meeting of the Company.
There has been no change in auditor of the Company in any of the past three years.
(XXV) Auditor’s remuneration
For auditor’s audit service fee during the Reporting Period, please refer to “Auditors” under “Other Disclosures”
in the section headed “Management Discussion and Analysis and Report of the Board” in this report.
During the Reporting Period, the Company employed KPMG Huazhen LLP to provide non-auditing services,
such as agreed procedures and advisory service, and the fees for such non-auditing services were RMB1.63
million.
(XXVI) Review of Annual Results
This annual financial report has been audited. The Audit Committee under the Board of Directors has
reviewed the Company’s audited annual financial statement and annual report as of December 31, 2021,
and did not raise any objections to the accounting policy and convention adopted by the Company.
(XXVII) Publication of the Annual Report
This annual report will be released on the Company’s website (www.htsc.com.cn) and the HKEXnews website
(www.hkexnews.hk).
The 2021 annual report of the Company which contains all the information required by the Hong Kong Listing
Rules will be sent to shareholders and published on the Company’s website (www.htsc.com.cn) and the
HKEXnews website (www.hkexnews.hk).
By order of the Board
Zhang Wei
Chairman
March 30, 2022
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I. DESCRIPTION OF CORPORATE GOVERNANCE
As a public company listed in both domestic and overseas, the Company has been operating business
in a standard manner and in strict compliance with the requirements set forth in the laws, regulations
and regulatory documents of the PRC and the overseas jurisdiction where the shares of the Company
are listed, and has made continuous efforts to maintain and enhance the good image of the Company
in the market. The Company keeps improving its corporate governance structure, compliance risk control
and internal control system according to the requirements under the Company Law, the Securities Law,
the Regulations on Supervision and Management of Securities Companies, the Rules for Governance of
Securities Companies, the Rules for Corporate Governance of Listed Companies, the Corporate Governance
Code and Corporate Governance Report (the relevant code is set out on https://en-rules.hkex.com.hk/
sites/default/files/net_file_store/new_rulebooks/h/k/HKEX4476_3828_VER10.pdf) as set out in Appendix 14
to the Hong Kong Listing Rules and other relevant laws and regulations as well as the Articles of Association,
in order to establish a modern corporate system, and shape a corporate governance structure where
checks and balances among the general meeting, the Board, the Supervisory Committee and the operation
management are maintained, with each of them being separated from the other and performing its own
functions and responsibilities corresponding to its position within the specified terms of reference, thereby
ensuring all the operational activities of the Company are carried out smoothly and in accordance with
relevant laws and regulations.
(I) Corporate governance
During the Reporting Period, the Company conducted its operations and management in a standard
and orderly manner. Various rules and regulations have been formulated and continuously refined in
strict compliance with the requirements of laws, regulations and regulatory documents to regulate
the Company’s operations. During the Reporting Period, to further improve corporate governance, the
Company amended and improved the Rules of Procedures for General Meetings in accordance with the
Securities Law (
《證券法》
), the Reply of the State Council on the Adjustment of the Provisions Applicable
to the Notice Period of Convening General Meetings of Shareholders and Other Matters Applicable to the
Companies Listed Abroad (
《國務院關於調整適用在境外上市公司召開股東大會通知期限等事項規定的批覆》
), Code
of Corporate Governance for Listed Companies (
《上市公司治理準則》
), Guidelines for Articles of Association
of Listed Companies (
《上市公司章程指引》
), Rules Governing the Listing of Stocks on the Shanghai Stock
Exchange (
《上海證券交易所股票上市規則》
) and other relevant laws, regulations, regulatory documents and
the Articles of Association and in light of the Company’s actual condition, which was considered and
HUATAI SECURITIES
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CORPORATE
GOVERNANCE
HUATAI SECURITIES
approved at the general meeting of the Company. In addition, during the Reporting Period, as considered
and approved by the Board and at the general meeting and according to the election at the congress of
workers and staff of the Company, the Company adjusted the members of the fifth session of the Board, the
Supervisory Committee and the special committees of the Board to fully display professional advantages
and improve the decision-making efficiency and level. Through the establishment and improvement as well
as the full implementation of the above systems, the Company’s governance structure and level have been
continuously standardized and improved.
The convening, holding and voting procedures of the general meeting, the Board of Directors and the
Supervisory Committee of the Company were standard, legal and valid, and the Company disclosed
truthful and accurate information in a complete, timely and fair manner. The Company carried out investor
relationship management in a standard and professional manner, and carried out inside information
management and registration of insiders in strict compliance with the requirements of the System
regarding Insider Registration and Management and Confidentiality of the Company and other relevant
rules. The Company adhered to the principle of scientificity, standardization and transparency when
practicing corporate governance. During the Reporting Period, the Company was once again rated Class
A Level AA in the assessment of securities firms conducted by the CSRC in 2021, was rated as the highest
level A in the 2020-2021 information disclosure evaluation of listed companies organized by the Shanghai
Stock Exchange, and won the Best Practice Case Award in the 2021 Best Practice Case for Board Office of
Public Companies organized by China Association for Public Companies. In addition, with its outstanding
performance in environmental, social and corporate governance, the Company’s MSCI ESG rating in 2021
jumped from BBB to A, achieving an improvement for three consecutive years, currently the highest rating
for a domestic securities company and the first A rating in the domestic securities industry.
1. Shareholders and the General Meeting
The shareholders’ general meeting is the organ of the highest authority of the Company, and the
shareholders exercise their rights through the shareholders’ general meeting. The Company convenes and
holds shareholders’ general meetings in strict accordance with the relevant provisions of the Articles of
Association and the Rules of Procedures for General Meetings to ensure the equal status of all shareholders,
in particular the minority shareholders, and enable them to exercise their rights completely. The largest
shareholder and the de facto controller of the Company exercised their rights in accordance with the laws,
regulations and the Articles of Association, and neither directly or indirectly intervened in the decisions and
operations of the Company beyond the general meeting nor appropriated any fund of the Company or
requested the Company to provide any external guarantee. The Company was completely independent
from its largest shareholder and de facto controller in terms of staff, assets, finance, organization and
business.
2. Directors and the Board
The election and change of Directors were in strict compliance with the Articles of Association. The number
and composition of the Board conformed to the requirements of the relevant laws and regulations. The
Board has continuously improved its rules of procedures. All the Board meetings were duly convened and
held, and all voting procedures at the meetings were legal and valid. The Company has established the
Working System for Independent Directors, and all the independent Directors have independently and
objectively worked to protect the legitimate rights and interests of the Company and its shareholders, and
played a role of check and balance in the decision-making process of the Board. All Directors performed
their respective responsibilities with due diligence in accordance with relevant requirements, and worked to
protect the interests of the Company and all shareholders
.
There is no financial, business, family or other significant/related relationship between the Directors,
Supervisors and senior management of the Company.
The Company believes that the increasing diversity of the Board is one of the key factors that help support
its strategic objectives and maintain sustainable development. Therefore, the Company should, when
determining the composition of the Board, consider the diversity of Board members in several aspects,
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including but not limited to gender, age, cultural, educational background, professional experience, skills,
knowledge and popularity in service. The determination of the members should be based on the value of
the candidates and the contribution that they could make to the Board. All nominations of the Board should
be in the principle of “merit-based”. When the candidates are selected, the benefits from the diversity
of Board members should be taken into full consideration according to their objective conditions. The
Nomination Committee will report annually on the diversified composition of the Board in the annual report,
inspect the implementation of the abovementioned policy on diversification of Board members and review
such policy in due course so as to ensure its effectiveness.
In 2019, the Company set up the fifth session of the Board of Directors, with members including strategic
Shareholder representatives introduced through the non-public issuance of A Shares, forming a Board with
diversified composition and complementary advantages.
3. Supervisors and the Supervisory Committee
The election and change of the Supervisors were in strict compliance with the Articles of Association. The
number and composition of the Supervisory Committee conformed to the requirements of the relevant
laws and regulations. The Supervisory Committee has continuously improved its rules of procedure. All the
meetings of the Supervisory Committee were duly convened and held, and all voting procedures at the
meetings were legal and valid. The Supervisory Committee is responsible to the general meeting. Based on
the principle of being responsible to all shareholders, the Supervisory Committee effectively supervised the
legality and compliance of the Company’s finance and the performance of duties by the Board and the
management of the Company. All Supervisors diligently performed their duties, attended all meetings of the
Supervisory Committee and sat in the meetings of the Board as non-voting delegates, made reports to the
general meeting and submitted its work report.
4. Senior Management of the Company
The election and change of the senior management were in strict compliance with the Articles of
Association. The procedures for appointment of senior management complied with the Company Law
and the Articles of Association. The Company has formulated the Terms of Reference of the CEO and
the Executive Committee and the Terms of Reference of the Secretary to the Board and other rules and
regulations. The senior management of the Company conducted operations and performed their duties
legally and diligently in accordance with the laws, regulations and authorizations of the Board, in order to
maximize shareholders’ benefits and social benefits.
5. Information Disclosure and Transparency of the Company
The Company disclosed information in a truthful, accurate, complete and timely manner in strict
compliance with the requirements of laws, rules and relevant regulations, and ensured that all shareholders
Professional background: Finance, economics, accounting, laws, business administration, economic
management, enterprise management, public administration, electronic communication, monetary
banking, etc.
As of the end of the Reporting Period, the composition of the Board of the Company is as follows:
By age group
By category
of Directors
By gender
Aged 50 and below
aged 51-55 aged 56-60 aged over 60
Executive Directors non-executive Directors independent non-executive Directors
Female Directors male directors
5 persons
3 persons
3 persons 10 persons
5 persons 5 persons
3 persons 3 persons 2 persons
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had an equal access to the relevant information of the Company, thereby ensuring the transparency of
the Company. The Company strengthened the management of inside information, worked to ensure the
confidentiality of inside information, and safeguarded the principle of fairness in information disclosure
in strict compliance with the System regarding Insider Registration and Management and Confidentiality
of the Company. The Board designated the secretary to the Board to be responsible for the Company’s
information disclosure, and the Office of the Board also assisted the secretary in information disclosure.
Meanwhile, the Company also arranged dedicated personnel to answer telephone enquiries of investors
and questions from investors via e-mails and the SSE interactive E-platform, actively interacted with
institutional investors during their on-site surveys, and set up maintained an investor relations section on the
Company’s website.
6. Stakeholders
The Company gave full respects to the shareholders, customers, staff and other stakeholders and
protected their legitimate rights and interests from the perspective of system building and in each link of
business operation, ensured the development of the Company in a sustainable, harmonious, healthy and
standard way, in order to achieve all-win results for the Company and all stakeholders, thus maximizing the
Company’s profits and social benefits.
During the Reporting Period, according to the requirements of the regulatory departments, the Company
further improved its organizational structure, institutional building and strengthened management of inside
information, and ensured that the actual status of the corporate governance of the Company complied with
the requirements of the regulatory documents published by the CSRC regarding the corporate governance
of listed companies. Meanwhile, the Company strictly complied with all the code provisions as set out in the
Corporate Governance Code and Corporate Governance Report, and met most of the recommended best
practices in the Corporate Governance Code.
(II) Formulation and Implementation of Insider Registration and Management
System
The Company formulated the System regarding Insider Registration and Management and Confidentiality
in April 2010 in accordance with the requirements of relevant laws and regulations, regulatory documents
and the Articles of Association and in light of the actual situation of the Company, which was considered
and approved at the seventeenth meeting of the first session of the Board, in order to strengthen the
management of inside information, maintain the confidentiality of inside information, ensure fair information
disclosure and protect the legitimate rights and interests of investors.
In December 2011, according to the Provisions on the Establishment of an Insider Registration and
Management System by Listed Companies (CSRC Announcement [2011] No. 30) (
《關於上市公司建立內幕信
息知情人登記管理制度的規定》
(
證監會公告
[2011] 30
號
)) by the CSRC, the Circular on Filing Records of Insiders
by Listed Companies (Shang Zheng Gong Han [2011] No. 1501) (
《關於做好上市公司內幕信息知情人檔案報送
工作的通知》
(
上證公函
[2011] 1501
號
)) by the Shanghai Stock Exchange and other relevant requirements
issued by regulators, the Company made amendments to the System Regarding Insider Registration and
Management and Confidentiality, which were considered and approved at the seventh meeting of the
second session of the Board.
In March 2015, in order to meet the relevant regulatory requirements regarding the listing of the H Shares
of the Company, the Company made amendments to the System Regarding Insider Registration and
Management and Confidentiality, which were considered and approved at the sixteenth meeting of the
third session of the Board.
In March 2019, for consistency with the Articles of Association, the Company made amendments to the
System regarding Insider Registration and Management and Confidentiality, which was considered and
approved at the twentieth meeting of the fourth session of the Board.
In August 2020, according to relevant requirements of the revised Securities Law, the Guidelines on Insiders
Reporting by Listed Companies of the SSE as well as relevant laws, regulations and regulatory documents,
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the Company made amendments to the System regarding Insider Registration and Management and
Confidentiality, which was considered and approved at the seventh meeting of the fifth session of the Board.
During the Reporting Period, the Company made more efforts to maintain the confidentiality of inside
information, performed its obligation of insider registration, management and confidentiality diligently, kept
records of the names of insiders who had accessed to the inside information at the stage of negotiation,
planning, demonstration and consultation and contracting as well as in the processes of reporting, delivery,
preparation, auditing, resolution and disclosing before its final disclosure in strict compliance with the
requirements of System regarding Insider Registration and Management and Confidentiality, and kept
records of information relating to insiders and memos of progress of major events, in order to effectively
prevent insider dealing and properly carry out information disclosure.
During the Reporting Period, the Company organized internal investigation into the dealing of shares and
derivatives of the Company by insiders, and found that none of the holders of inside information had made
use of inside information in share transactions before any significant-price-sensitive-nature information
disclosure that may affect the share price of the Company, and the Company has not received any
punishment or administrative measure imposed by regulatory departments due to the implementation of
the Insider Registration and Management System or the possible involvement in insider dealing.
(III) Corporate Governance Policies and the Board’s Responsibilities for Corporate
Governance
The Company has been in strict compliance with the Hong Kong Listing Rules, and followed all the principles
in the Corporate Governance Code and the Corporate Governance Report to be its own corporate
governance policies. In respect of the corporate governance function, the terms of reference of the Board
shall at least include:
(1) to formulate and review the corporate governance policies and practices of the Company;
(2) to review and monitor the training and continuous professional development of the Directors and the
senior management;
(3) to review and monitor the Company’s policies and practices on compliance with laws and regulatory
requirements;
(4) to formulate, review and monitor the code of conduct and compliance manual (if any) applicable to
monitor employees and Directors;
(5) to review the Company’s compliance with the Corporate Governance Code and disclosure in the
Corporate Governance Report.
(IV) Securities Transactions by Directors, Supervisors and Employees
During the Reporting Period, the Company adopted the Model Code for Securities Transactions by Directors
of Listed Issuers as set out in Appendix 10 to the Hong Kong Listing Rules as the code of conduct for securities
transactions of the Company by all Directors and Supervisors. According to the domestic regulatory
requirements, the Company convened the thirteenth meeting of the third session of the Board on November
25, 2014 to consider and approve the Administrative System regarding the Shares of the Company Held
by Directors, Supervisors and Senior Management (the “Administrative System”) in order to regulate the
holding and dealing in the shares of the Company by Directors, Supervisors and senior management. On
March 6, 2015, the Company made amendments to the Administrative System in order to meet the relevant
regulatory requirements regarding the listing of the H Shares of the Company, which were considered and
approved at the sixteenth meeting of the third session of the Board. The compulsory provisions contained
in the Administrative System are stricter than those under the Model Code. Having made all enquiries with
Directors, Supervisors and senior management, the Company confirmed that all Directors, Supervisors
and senior management had strictly complied with the relevant requirements under the Administrative
System and Model Code during the Reporting Period. The Board of the Company will, from time to time,
carry out inspection on corporate governance and operation of the Company, in order to ensure the
HUATAI SECURITIES
116
relevant provisions under the Hong Kong Listing Rules were well observed and to protect the interests of the
shareholders. Please refer to “Changes in shareholding structure and remuneration of current and resigned
Directors, Supervisors and senior management during the Reporting Period” under “Directors, Supervisors
and Senior Management” under “Corporate Governance” in this report for details of the shareholding of the
Directors, Supervisors and senior management of the Company.
II. SPECIFIC MEASURES TAKEN BY THE CONTROLLING SHAREHOLDERS
AND DE FACTO CONTROLLERS OF THE COMPANY TO ENSURE THE
INDEPENDENCE OF THE COMPANY IN TERMS OF ASSETS, PERSONNEL,
FINANCE, ORGANIZATION AND BUSINESS, AND THE SOLUTIONS, WORK
PROGRESS AND FOLLOW-UP WORK PLANS THAT INFLUENCE THE
INDEPENDENCE OF THE COMPANY
The shareholding structure of the Company is relatively decentralized without controlling shareholders. The
de facto controller of the Company is Jiangsu SASAC. Since its inception, the Company has been operating
in strict compliance with relevant laws and regulations including the Company Law and the Securities
Law as well as the requirements of the Articles of Association. The Company is completely separated from
its shareholders in respect of business, staff, assets, organization and finance, owns a complete business
system and is capable of operating independently in the market.
1. Information about the independence of business
In accordance with the requirements of the Company Law and the Articles of Association, the Company
conducts business on its own pursuant to the law within the operating scope approved by the CSRC, and
has obtained various business materials required for securities business operation with an independent
and complete business system and the ability of self-operation. Its business operation is not controlled or
affected by its shareholders or related parties. The Company can compete in the market independently.
Shareholders and related parties of the Company did not breach the Company’s working procedures or
intervene in the Company’s internal management or the making of its operational decisions.
2. Information about the independence of the staff
The Company set up a dedicated human resources department, and established independent and
complete systems for labor employment, personnel management, salary management and social security.
The Directors, Supervisors, and senior management of the Company were selected and employed in
compliance with relevant requirements of the Company Law, the Securities Law, and the Measures for
the Supervision and Administration of the Professional Qualifications of Directors, Supervisors and Senior
Management of Securities Firms and the Articles of Association. The current Directors, Supervisors and senior
management of the Company meet the corresponding qualifications. The senior management of the
Company held no positions in its largest shareholder and de facto controller and other enterprises under its
control. The Company adopts an appointment system for the senior management, a labor contract system
for all staff, and enters into Labor Contract with all the staff in accordance with the law. The Company owns
independent rights for labor employment and its staff is independent from the shareholders and enterprises
under their control without any interference from the shareholders.
3. Information about the integrity of the assets
The Company owns main business qualifications, land, real estate, vehicles and other operating equipment
required for business operation. The above assets are subject to no mortgage, pledge or other guarantees,
and the Company is the legal owner of these assets. The assets of the Company are independent from its
largest shareholder and other shareholders. As of the end of the Reporting Period, the Company provided
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no guarantees for the debts of any of its shareholders and their subsidiaries by using its assets or reputation
as the collateral. The Company had full control and use right over its assets, and there had been no
circumstance under which the interests of the Company were damaged due to the largest shareholder’s
occupation of any of its assets and funds.
4. Information about organizational independence
In strict compliance with the requirements of the Company Law and the Articles of Association, the
Company has set up a sound corporate governance structure, under which the general meeting, the
Board of Directors, the Supervisory Committee, the management and relevant operating management
departments have been formed. The general meeting, the Board of Directors, the Supervisory Committee
and the management are in good operation and exercise their respective functions and powers pursuant
to the law. The Company owns an independent and complete system for securities business operation
and management, and conducts business on its own. The organizations are set up and run in compliance
with the relevant requirements of the CSRC. The existing offices and premises of the Company are totally
separate from its shareholders without the circumstances of sharing organizations with them or their direct
intervention in the Company’s business activities.
5. Information about financial independence
As required by the Accounting Standards for Business Enterprises and the Financial Systems of Securities
Firms, the Company has established an independent financial accounting and management system, set
up an independent accounting department, and employed independent financial accountants. The chief
financial officer and financial personnel of the Company held no positions in its shareholders. The Company
has opened an independent bank account, applied for an independent tax registration and paid taxes in
accordance with laws and regulations. The Company shared no accounts and taxes with its shareholders
and related parties.
As of the end of the Reporting Period, the Company provided no guarantees for its shareholders and other
related parties. During the Reporting Period, the Company experienced no peer competition and related-
party transactions resulted from shareholding reform, features of the industry and national policies or
mergers and acquisitions.
CONTROLLING SHAREHOLDERS, DE FACTO CONTROLLERS AND OTHER UNITS UNDER THEIR CONTROL
ENGAGED IN SAME OR SIMILAR BUSINESSES AS THE COMPANY AND IMPACTS OF HORIZONTAL
COMPETITIONS OR SIGNIFICANT CHANGES IN HORIZONTAL COMPETITIONS ON THE COMPANY,
SOLUTIONS ADOPTED, SOLVING PROGRESS AND SUBSEQUENT SOLUTIONS:
In July 2010 and with the approval of the People’s Government of Jiangsu Province, Jiangsu SASAC decided
to transfer the state-owned equities in Jiangsu Sainty International Group Limited to Guoxin Group, the
largest shareholder of the Company. Guoxin Group directly and indirectly held 78.5% equities of Jintai
Futures Co., Ltd. and became the controlling shareholder of Jintai Futures Co., Ltd. Jintai Futures Co., Ltd.
is principally engaged in commodities futures brokerage, financial futures brokerage, futures investment
consultancy and asset management, which has horizontal competition with Huatai Futures, a subsidiary by
the Company.
To avoid the abovementioned horizontal competition, on June 10, 2014, the Company organized the
convening of the sixth meeting of the third session of the Board and the fourth meeting of the third session
of the Supervisory Committee, which considered and approved the Resolution on Avoiding Horizontal
Competition in Futures Businesses Between Jiangsu Guoxin and Huatai Securities and submitted to the
2014 second extraordinary general meeting convened on June 26, 2014 for consideration and approval.
Meanwhile, the independent Directors of the Company expressed independent opinions on the resolution.
They believed that such horizontal competition has no significant effect on the operation and development
of Huatai Securities and the interests of minority shareholders and the resolution is in line with relevant
regulations of the CSRC and beneficial to the legitimate interests of investors, small and medium investors
in particular, and meets the requirements of Huatai Securities on maximizing shareholders’ interests.
HUATAI SECURITIES
118
On June 27, 2014, Guoxin Group re-signed the Letter of Undertaking on Waiving Horizontal Competition
and Conflict of Interests based on relevant regulations and the requirements of the resolutions at the 2014
second extraordinary general meeting of the Company. For the details of the announcement on the change
of such undertaking, please refer to the announcement (Lin No. 2014-047) on the performance and change
of undertaking by the Company’s shareholder dated June 28, 2014.
III. BRIEF INTRODUCTIONS TO THE GENERAL MEETINGS
Meeting
Convening
date Resolutions
Enquiry index of
the websites designated
for publication of the
resolutions
Date of
disclosure
of
the
publication
of the
resolutions Status
2021 First
Extraordinary
General
Meeting
February 8,
2021
1. To consider and approve the election of Mr. Ke
Xiang as a non-executive Director of the fifth session
of the Board;
2. To consider and approve the resolution on the
general mandate for the Company’s domestic and
foreign debt financing instruments;
3. To consider and approve the resolution on
amendments to the Rules of Procedures of General
Meetings of Huatai Securities Co., Ltd.;
4. To consider and approve the resolution on the
Restricted Share Incentive Scheme of A Shares of
Huatai Securities Co., Ltd. (Draft) and its Summary;
5. To consider and approve the resolution on the
Administrative Measures for the Restricted Share
Incentive Scheme of A Shares of Huatai Securities
Co., Ltd.;
6. To consider and approve the resolution on the
Administrative Measures for the Implementation and
Appraisal of the Restricted Share Incentive Scheme
of A Shares of Huatai Securities Co., Ltd.;
7. To consider and approve the resolution on the
Proposed Grant of Authorization by the General
Meeting to the Board to Handle Matters in relation to
the Restricted Share Incentive Scheme of A Shares
of the Company.
http://www.sse.com.cn
http://www.hkexnews.hk
http://www.
londonstockexchange.com
http://www.htsc.com.cn
February 9,
2021
All resolutions
were
considered
and
approved
2020
Annual
General
Meeting
June 22,
2021
1. To consider and approve the 2020 Work Report of
the Board;
2. To consider and approve the 2020 Work Report of
the Supervisory Committee;
3. To consider and approve the 2020 Final Financial
Report;
4
.
To consider and approve the resolution on the
2020 Annual Report of the Company;
5. To consider and approve the resolution on the
2020 Profit Distribution of the Company;
6. To consider and approve the resolution on the
estimated ordinary transactions with related parties
of the Company for 2021;
7. To consider and approve the resolution on the
estimated investment amount for the proprietary
business of the Company for 2021;
8. To consider and approve the resolution on
the reappointment of the accounting firm of the
Company;
9. To consider and approve the resolution on the
election of an independent non-executive Director
of the fifth session of the Board of the Company;
10. Debriefing of the Work Report of Independent
Directors of the Company for 2020;
11. Debriefing of the Report on Performance
Assessment and Remuneration of the Directors of
the Company in 2020;
12. Debriefing of the Report on Performance
Assessment and Remuneration of the Supervisors of
the Company for 2020;
13. Debriefing of the Report on Execution of Duty,
Performance Assessment and Remuneration of
Senior Management of the Company for 2020.
http://www.sse.com.cn
http://www.hkexnews.hk
http://www.
londonstockexchange.com
http://www.htsc.com.cn
June 23,
2021
All resolutions
were
considered
and
approved
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Description of general meetings
During the Reporting Period, the Company held two general meetings in total, the details of which were as follows:
The 2021 first extraordinary general meeting of the Company, with on-site & network voting methods adopted, was held at Renaissance
Nanjing Olympic Centre Hotel (No. 139, Aoti Street, Jianye District, Nanjing). The general meeting was organized by the Board of Directors and
hosted by the Chairman – Mr. Zhang Wei. Certain Directors, Supervisors and the secretary to the Board attended the meeting and certain
senior management of the Company and witnessing lawyers employed by the Company and relevant personnel of Computershare Hong
Kong Investor Services Limited sat in the meeting. The meeting was convened and held, and its voting method was in conformity with relevant
regulations such as the Company Law and the Articles of Association and so on. Details of relevant announcements on the resolutions of the
general meeting can be found on the website of the Shanghai Stock Exchange (http://www.sse.com.cn), the HKEXnews website of the HKEX (http://
www.hkexnews.hk), the website of the London Stock Exchange (http://www.londonstockexchange.com) and our Company’s website (http://www.
htsc.com.cn) and China Securities Journal, Shanghai Securities News, Securities Daily and Securities Times published on February 9, 2021.
The 2020 Annual General Meeting of the Company, with on-site & network voting methods adopted, was held at Renaissance Nanjing Olympic
Centre Hotel (No. 139, Aoti Street, Jianye District, Nanjing). The general meeting was organized by the Board of Directors and hosted by the
Chairman – Mr. Zhang Wei. Certain Directors, Supervisors and the secretary to the Board attended the meeting and certain senior management
of the Company and witnessing lawyers employed by the Company and relevant personnel of Computershare Hong Kong Investor Services
Limited sat in the meeting. The meeting was convened and held, and its voting method was in conformity with relevant regulations such as the
Company Law and the Articles of Association and so on. Details of relevant announcements on the resolutions of the general meeting can be
found on the website of the Shanghai Stock Exchange (http://www.sse.com.cn), the HKEXnews website of the HKEX (http://www.hkexnews.hk),
the website of the London Stock Exchange (http://www.londonstockexchange.com) and our Company’s website (http://www.htsc.com.cn) and
China Securities Journal, Shanghai Securities News, Securities Daily and Securities Times published on June 23, 2021.
None of the shareholders of the Company are holders of preference shares with voting rights recovered. Therefore, none of the extraordinary
general meetings was convened by holders of preference shares with voting rights restored, nor was any general meeting proposed to be
convened, convened or chaired by the holders of preference shares with voting rights recovered during the Reporting Period.
(I) Changes in shareholding structure and remuneration of current and resigned
Directors, Supervisors and senior management during the Reporting Period
IV. DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
Unit: Ten thousand shares Currency: RMB
Name Position (note) Gender Age
Start of the
term of office
Expiration
of the term
of office
Number
of Shares
held at the
beginning
of the year
Number of
Shares held
at the end
of the year
Changes in
shareholding
during the
year
Reason
for change
Total pre-tax
remuneration
received from
the Company
during the
Reporting
Period (RMB
Ten Thousand
Yuan)
Whether
received
remuneration
from any
connected
party of the
Company
or not
Zhang Wei Chairman Male 57 2019-12-16 2022-12-15 – – - – 177.12 No
Zhou Yi
Executive Director
Male 52
2007-12-06 2022-12-15
- 72.00 72.00
Share
incentive
456.25 No
Chief executive
officer, Chairman
of the Executive
Committee
2019-10-29 2022-12-15
Ding Feng
Non-executive
Director
Male 53 2018-10-22 2022-12-15 – – – – – Yes
Chen
Yongbing
Non-executive
Director
Male 47 2018-10-22 2022-12-15 – – – – – Yes
Ke Xiang
Non-executive
Director
Male 47 2021-02-08 2022-12-15 – – – – – Yes
Hu Xiao
Non-executive
Director
Female 42 2018-10-22 2022-12-15 – – – – – No
Wang Tao
Non-executive
Director
Male 53 2019-12-16 2022-12-15 – – – – – Yes
Zhu Xuebo Executive Director Male 59 2018-10-22 2022-12-15 – – – – – Yes
Chen
Chuanming
Independent non-
executive Director
Male 64 2016-03-18 2022-12-15 – – – – 24.00 Yes
Liu Yan
Independent non-
executive Director
Female 48 2016-12-21 2022-12-15 – – – – 24.00 No
HUATAI SECURITIES
120
Name Position (note) Gender Age
Start of the
term of office
Expiration
of the term
of office
Number
of Shares
held at the
beginning
of the year
Number of
Shares held
at the end
of the year
Changes in
shareholding
during the
year
Reason
for change
Total pre-tax
remuneration
received from
the Company
during the
Reporting
Period (RMB
Ten Thousand
Yuan)
Whether
received
remuneration
from any
connected
party of the
Company
or not
Chen
Zhibin
Independent non-
executive Director
Male 56 2018-06-13 2022-12-15 – – – – 24.00 Yes
Wang
Jianwen
Independent non-
executive Director
Male 47 2020-06-18 2022-12-15 – – – – 24.00 No
Au King Chi
Independent non-
executive Director
Female 62 2021-06-22 2022-12-15 – – – – 14.00 No
Gu
Chengzhong
Employee
Representative
Supervisor
Male 56
2019-04-26 2022-12-15
– – – – 523.07 No
Chairman of
the Supervisory
Committee
2021-10-29 2022-12-15
Zhang Ming
Supervisor Male 47 2019-12-16 2022-12-15 – – – – – Yes
Yu Lanying Supervisor Female 50 2018-10-22 2022-12-15 – – – – – Yes
Zhang
Xiaohong
Supervisor Female 54 2019-12-16 2022-12-15 – – – – – Yes
Fan
Chunyan
Supervisor Female 45 2019-12-16 2022-12-15 – – – – – No
Wang Ying
Employee
Representative
Supervisor
Female 42 2019-12-16 2022-12-15 – – – – 377.61 No
Wang Juan
Employee
Representative
Supervisor
Female 43 2021-10-29 2022-12-15 – – – – 98.20 No
Li Shiqian
Member of
the Executive
Committee
Male 53 2020-03-10 2022-12-15 – 60.00 60.00
Share
incentive
291.60 No
Sun Hanlin
Member of
the Executive
Committee
Male 56 2019-12-16 2022-12-15 – 60.00 60.00
Share
incentive
366.32 No
Jiang Jian
Member of
the Executive
Committee
Male 55 2019-12-16 2022-12-15 – 60.00 60.00
Share
incentive
366.32 No
Zhang Hui
Member of
the Executive
Committee
Male 46
2019-12-16 2022-12-15
– 60.00 60.00
Share
incentive
411.10 No
Secretary to the
Board of Directors
2017-04-26 2022-12-15
Chen
Tianxiang
Member of
the Executive
Committee
Male 43 2020-02-18 2022-12-15 – 60.00 60.00
Share
incentive
419.50 No
Jiao
Xiaoning
Chief financial
officer
Female 51 2020-03-05 2022-12-15 – 50.00 50.00
Share
incentive
395.80 No
Jiao Kai
Chief compliance
officer
Male 47
2020-02-17 2022-12-15
– 50.00 50.00
Share
incentive
410.12 No
General legal
counsel
2019-12-16 2022-12-15
Wang
Chong
Chief risk officer Male 49 2017-03-16 2022-12-15 – 50.00 50.00
Share
incentive
412.20 No
Xu Qing
Non-executive
Director
(resigned)
Male 49 2016-06-07 2021-02-08 – – – – – Yes
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Name Position (note) Gender Age
Start of the
term of office
Expiration
of the term
of office
Number
of Shares
held at the
beginning
of the year
Number of
Shares held
at the end
of the year
Changes in
shareholding
during the
year
Reason
for change
Total pre-tax
remuneration
received from
the Company
during the
Reporting
Period (RMB
Ten Thousand
Yuan)
Whether
received
remuneration
from any
connected
party of the
Company
or not
Lee Chi
Ming
Independent non-
executive Director
(resigned)
Male 68 2015-04-30 2021-06-22 – – – – 12.00 No
Zhai Jun
Employee
Supervisor
(resigned)
Male 47
2019-04-26 2021-10-29
– – – – 484.30 Yes
Chairman of
the Supervisory
Committee
(resigned)
2020-02-18 2021-10-29
Total / / / / / – 522.00 522.00 / 5,311.51 /
Notes:
1. On February 8, 2021, the Resolution in relation to the Election of Mr. Ke Xiang as a Non-executive Director of the Fifth Session of the Board of the
Company was considered and approved at the 2021 First Extraordinary General Meeting of the Company, pursuant to which Mr. Ke Xiang was
elected as a non-executive Director of the fifth session of the Board of the Company. Mr. Ke Xiang has replaced Mr. Xu Qing to serve as a non-
executive Director of the fifth session of the Board of the Company from February 8, 2021, and his term of office shall be ended at the end of the
term of the current session of the Board.
2. On April 7, 2021, the Company received the Certificate of Registration of Changes in Securities issued by China Securities Depository and
Clearing Corporation Limited Shanghai Branch to set out the record date being April 6, 2021 and granted 45,488,000 Restricted A Shares to 810
eligible incentive participants. The incentive participants granted under the Incentive Scheme include the Directors, senior management and
other core key employees of the Company, but exclude the non-executive Directors (including independent Directors) and Supervisors of the
Company. The Company has completed the registration of the grant of the Restricted A Shares.
3. On June 22, 2021, the Resolution on the Election of an Independent Non-executive Director of the Fifth Session of the Board of the Company
was considered and approved at the 2020 Annual General Meeting of the Company, pursuant to which Ms. Au King Chi was elected as an
independent non-executive Director of the fifth session of the Board of the Company. Ms. Au King Chi has replaced Mr. Lee Chi Ming to serve
as an independent non-executive Director of the fifth session of the Board of the Company from June 22, 2021, and her term of office shall be
ended at the end of the term of the current session of the Board.
4. On October 29, 2021, the Supervisory Committee of the Company received the written resignation application from Mr. Zhai Jun, the chairman
of the Supervisory Committee and the Employee Representative Supervisor. Due to the change of work arrangement, Mr. Zhai Jun has tendered
his resignation as the Chairman of the fifth session of the Supervisory Committee and the Employee Representative Supervisor of the Company.
On the same day, the Supervisory Committee of the Company received a Notice on the Election Results for New Employee Representative
Supervisor of the Fifth Session of the Supervisory Committee from the Employee Representatives’ Meeting of the Company, at which Ms. Wang
Juan was elected as the Employee Representative Supervisor for the fifth session of the Supervisory Committee of the Company. Ms. Wang Juan
replaced Mr. Zhai Jun from October 29, 2021 in performing the duties of Employee Representative Supervisor of the fifth session of the Supervisory
Committee of the Company, until the end of the term of the fifth session of the Supervisory Committee. On the same day, the Company
convened the eleventh meeting of the fifth session of the Supervisory Committee and resolved to elect Mr. Gu Chengzhong as the Chairman of
the fifth session of the Supervisory Committee of the Company. Mr. Gu Chengzhong replaced Mr. Zhai Jun from October 29, 2021 in performing
the duties of the Chairman of the fifth session of the Supervisory Committee of the Company, until the end of the term of the fifth session of the
Supervisory Committee.
5. According to the Securities Law and the CSRC’s Announcement on Various Issues in relation to the Cancellation or Adjustment of Certain
Administrative Approval Projects of Securities Companies (CSRC Announcement [2020] No. 18) (
《關於取消或調整證券公司部分行政審批項目等事項的公
告》
(
證監會公告
[2020] 18
號
)), senior management of securities companies no longer need regulatory authorities to approve their qualifications
before taking office. Mr. Han Zhencong will serve as a member of the Company’s executive committee and chief information officer (concurrently)
after fulfilling the filing of his qualifications as a manager of a securities company, and his remuneration applies the remuneration assessment
system of the Company.
6. Mr. Zhu Xuebo, an executive director of the Company, received remuneration from China Southern Asset Management.
7. Total pre-tax remuneration received by Directors, Supervisors and senior management from the Company during the Reporting Period was
implemented in accordance with relevant policies of governing authorities and the Company’s relevant remuneration assessment and deferred
compensation system, which include deferred payment of remuneration for the prior year.
8. Total pre-tax remuneration received from the Company during the Reporting Period excluded pension insurance, enterprise annuity and
restricted equity incentive.
9. The remuneration of the Directors that are the persons in charge of provincial financial enterprises shall be implemented in accordance with
the Interim Measures for the Administration of Remuneration of Persons in Charge of Provincial Financial Enterprises in Jiangsu Province (
《江蘇省
省管金融企業負責人薪酬管理暫行辦法》
).
HUATAI SECURITIES
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Name Primary work experience
Zhang Wei
Master of business administration, senior engineer and senior economist. He once worked in
Jiangsu Electronic Industry Research Institute (
江蘇省電子工業綜合研究所
). He also served as
cadre at department level of Jiangsu Electronic Industry Bureau and the deputy director of
Asset Management Division. He worked as secretary to the board of directors and assistant
general manager, deputy general manager, general manager and deputy secretary of the
party committee of Jiangsu Hiteker High-tech Co., Ltd. (
江蘇宏圖高科技股份有限公司
). He also
served as director, general manager, deputy secretary of the party committee, secretary of
the party committee and chairman of the board of Govtor Capital Group Co., Ltd. (
江蘇高科
技投資集團有限公司
). Mr. Zhang served as secretary of the party committee of the Company
from March 2019 to December 2019 and has been chairman of the Board of Directors and
secretary of the party committee of the Company since December 2019 with a term of office
in this session of Board from December 2019 to December 2022.
Zhou Yi
Bachelor of computer communications. Mr. Zhou once taught at Jiangsu Posts &
Telecommunications School (
江蘇省郵電學校
); engaged in technology management at the
Telecommunications Center of Jiangsu Posts & Telecommunications Bureau (
江蘇省郵電管
理局電信中心
) and administrative management at Jiangsu Mobile Communication Co., Ltd.
(
江蘇移動通信有限公司
); served as the chairman of the board of directors of Jiangsu Bei’er
Co., Ltd. (
江蘇貝爾有限公司
) and Nanjing Xinwang Telecom Tech Co., Ltd. (
南京欣網視訊科技股
份有限公司
), deputy general manager of Shanghai Beier Fortune Communications Company
(
上海貝爾富欣通信公司
), director and deputy secretary of the party committee of Huatai
Securities Limited Liability Company (
华泰证券有限责任公司
) from August 2006 to February
2007 and director, president and deputy secretary of the party committee of the same
company from February 2007 to December 2007. Mr. Zhou served as Director, President
and deputy secretary of the party committee of the Company from December 2007 to
October 2011; Director, President and secretary of the party committee of the Company from
November 2011 to June 2016; chairman of the Board of Directors, President, and secretary of
the party committee of the Company from June 2016 to March 2019; chairman of the Board
of Directors, President and party committee member of the Company from March 2019 to
October 2019; chairman of the Board of Directors, chief executive officer, chairman of the
Executive Committee and party committee member of the Company from October 2019
to December 2019, and has been Director, chief executive officer, chairman of the Executive
Committee and party committee member of the Company since December 2019 with a
term of office in this session of Board from December 2019 to December 2022.
Ding Feng
Master of business administration and senior accountant. He served as assistant accountant
of the finance department of China Songhai Industrial Corporation (
中國嵩海實業總公司
) in
Xiamen Special Economic Zone from August 1990 to November 1992; chief accountant of the
finance department of China North Industries Corporation Xiamen Branch (
中國北方工業廈門公
司
) from December 1992 to September 1995; deputy section chief of the finance department
of Jiangsu International Trust and Investment Company (
江蘇省國際信託投資公司
) from
October 1995 to August 2002; deputy project manager of the finance department of Guoxin
Group from August 2002 to September 2004; head of the finance department (manager
assistant) and deputy general manager of Jiangsu International Trust Corporation Limited
(
江蘇省國際信託有限責任公司
) from September 2004 to December 2009; deputy general
manager of the finance department of Guoxin Group from December 2009 to December
2010; vice president of Jiangsu Guoxin Group Finance Co., Ltd. (
國信集團財務有限公司
) from
December 2010 to December 2011; president and deputy secretary of the Party Committee of
Jiangsu Guoxin Group Finance Co., Ltd. from January 2012 to March 2018; and has served as
the general manager of finance department of Guoxin Group since March 2018. He has been
a Director of the Company since October 2018 with a term of office from December 2019 to
December 2022.
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Chen
Yongbing
Bachelor of economic management. He served as clerk and staff member of the enterprise
division of State-owned Assets Administration Bureau of Jiangsu Provincial Government (
江蘇省
國有資產管理局
) from August 1996 to November 2000; a staff member of the Administrative Office
of State-owned Assets of the Department of Finance of Jiangsu Province (
江蘇省財政廳國有資產
管理辦公室
) from November 2000 to January 2002; senior staff member of the Administrative
Office of State-owned Assets of the Department of Finance of Jiangsu Province from January
2002 to March 2004; cadre at sub-section level of Jiangsu SASAC from March 2004 to June
2004; senior staff member of the Division of Enterprise Reform and Development (
企業改革發展
處
) of Jiangsu SASAC from June 2004 to January 2005; principal staff member of the Division
of Enterprise Reform and Development of Jiangsu SASAC from January 2005 to December
2009; principal staff member of the Division of Enterprise Development and Reform (
企業發
展改革處
) of Jiangsu SASAC from December 2009 to May 2014; deputy director of the Division
of Enterprise Development and Reform of Jiangsu SASAC from May 2014 to October 2016;
deputy head of the investment and development department of Jiangsu Communications
Holding Co., Ltd. from October 2016 to January 2018; has served as head of the investment
and development department of Jiangsu Communications Holding Co., Ltd. from January
2018 to September 2020; has served as head of the development and reform department of
Jiangsu Communications Holding Co., Ltd. from September 2020 to September 2021; and has
served as party committee member and deputy general manager of China Eastern Airlines
Jiangsu Limited (
中國東方航空江蘇有限公司
) since September 2021. He has been a Director
of the Company since October 2018 with a term of office in this session of Board from
December 2019 to December 2022.
Ke Xiang
Doctoral degree in corporate management and senior engineer. From August 1996 to
October 2002, he successively served as staff member of the infrastructure investment
division, staff member and deputy senior staff member of the agriculture division of Jiangsu
Provincial Department of Finance. From October 2002 to August 2020, he worked at Jiangsu
Communications Holding Company Limited and successively served as assistant to the
director of the office, deputy director of the office, deputy director of the operation and
safety department, deputy director of the Toll Management Center of Expressway Network
of Jiangsu Province, director of the Information Center and deputy director of the office,
director of the development strategy and policy regulation research office, deputy director
of the investment and development department, director of the strategic research office,
deputy director of the corporate management and legal affairs department, and director
of the strategic planning department. Since August 2020, he has been deputy general
manager, member of the party committee and general counsel of Govtor Capital Group Co.,
Ltd. He has been a Director of the Company since February 2021 with a term of office in this
session of Board from December 2019 to December 2022.
Hu Xiao
Master of business administration. Ms. Hu served as accountant of KPMG Huazhen LLP from
September 2002 to July 2003; assistant analyst of the stock research department of China
International Capital Corporation Limited from July 2003 to July 2006; manager and then
vice president of Citigroup Global Markets Asia Limited from July 2008 to July 2012; vice
president and then director of Merrill Lynch (Asia Pacific) Limited from July 2012 to March
2017; and has successively served as director of the strategic investment department and
managing director of Alibaba Group Holding Limited since March 2017. She has been Director
of the Company since October 2018 with a term of office in this session of Board from
December 2019 to December 2022.
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Name Primary work experience
Wang Tao
Master of politics and economics. He successively served as assistant to president of
Shenzhen Branch of China Construction Bank and deputy general manager of the finance
and accounting department of the head office of China Construction Bank from June 1989.
He joined the head office of China Merchants Bank as general manager of the finance and
accounting department of the head office in June 2014, and has served as general manager
of the retail credit department of the head office since December 2016. He has also served
as director of inclusive financial service center of the head office since February 2018. He
has been in charge of the establishment of CMB Wealth Management Company Limited
(
招銀理財有限責任公司
) since July 2019 and has been director and president of CMB Wealth
Management Company Limited since November 2019. He has been Director of the Company
since December 2019 with a term of office in this session of Board from December 2019 to
December 2022.
Zhu Xuebo
Bachelor of monetary banking. Mr. Zhu worked at Nanjing Artillery Academy and Jiangsu
Branch of the People’s Bank of China. He joined Huatai Securities in March 2001 and
successively served as general manager of human resources department, head of
organization department of the Party Committee and assistant to the president, etc. He
served as deputy secretary of the Party Committee of the Company from March 2013 to
December 2020, and has served as deputy secretary of the Party Committee of China
Southern Asset Management Co., Ltd. since December 2020. He has been Director of the
Company since October 2018 with a term of office in this session of Board from December
2019 to December 2022.
Chen
Chuanming
Doctor of business management, a professor. In 1978, Mr. Chen was selected by the Ministry
of Education of China to study social and economic management at the University of Brittany
in France (
法國上布列塔尼大學
). He was assigned to work at the Institute of World Economics and
Politics of Chinese Academy of Social Sciences after returning to China in 1981. He has been
teaching at Nanjing University since December 1982, during which he studied for the Doctoral
degree in economics at the School of Economics of Nankai University from September 1990
to June 1993. Currently, he serves as professor of Nanjing University Business School, and
concurrently as vice chairman of Chinese Institute of Business Administration and Jiangsu
Association of Science and Technology Innovation. He has served as independent non-
executive Director of the Company since March 2016 with a term of office in this session of
Board from December 2019 to December 2022.
Liu Yan
Master of comparative law, with qualification as a lawyer both in China and the United States
(New York State). Ms. Liu joined Beijing Tian Yuan Law Firm in 1995 and has been partner of
Tian Yuan Law Firm since 2002. She has been independent non-executive Director of the
Company since December 2016 with a term of office in this session of Board from December
2019 to December 2022.
Chen Zhibin
Doctor of management (accounting), a postdoctoral fellow in accounting and professor and
doctoral student supervisor of the Faculty of Finance and Accounting at Southeast University.
Mr. Chen also serves as managerial accounting consultant to the Ministry of Finance and
vice director of the governmental accounting committee of the Accounting Society of China.
He has been independent non-executive Director of the Company since June 2018 with a
term of office in this session of Board from December 2019 to December 2022.
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Name Primary work experience
Wang
Jianwen
Ph.D. degree in civil and commercial law. From August 1998 to May 2006, he taught at Nanjing
Tech Law School. From May 2006 to May 2016, he taught at Hohai University School of Law.
From May 2016 to April 2021, he has been a professor, doctor-postgraduate supervisor and
dean at the College of Humanities and Social Sciences of Nanjing University of Aeronautics
and Astronautics, and has been a professor at the Law School of Nanjing University since
May 2021. He currently serves as a managing director of China Commercial Law Society,
the vice president and secretary-general of Jiangsu Commercial Law Society (
江蘇省法學會商
法學研究會
), and concurrently as a member of the legal experts’ pool of Jiangsu Provincial
Committee of the Communist Party of China, a decision-making consulting expert of The
Standing Committee of Jiangsu Provincial People’s Congress. He has been independent
non-executive Director of the Company since June 2020 with a term of office in this session
of Board from December 2019 to December 2022.
Au King Chi
Master’s degree in public administration. She served as the Administrative Officer of the
former Council Administration of the Hong Kong Government from August 1982 to November
1982; the Administrative Officer of the former City and New Territories Administration of the
Hong Kong Government from November 1982 to September 1983; the Administrative Officer
of the former Medical and Health Department of the Hong Kong Government from July 1984
to January 1986; the Assistant Secretary for Education of the former Education Commission
of the Hong Kong Government from January 1986 to April 1987; the Assistant Secretary for
Culture, Leisure, Municipal Services in the former Culture, Leisure, Municipal Services Branch
of the Hong Kong Government from April 1987 to January 1988; the Assistant Secretary
for the Securities Review Committee of the Hong Kong Government from January 1988 to
June 1988; the Assistant Secretary for Monetary Affairs and the Principal Assistant Secretary
for Monetary Affairs of the former Monetary Affairs Branch of the Hong Kong Government
from June 1988 to October 1991 successively; the Principal Assistant Secretary for Trade
and Industry of the former Trade and Industry Branch of the Hong Kong Government from
October 1991 to June 1995; the Deputy Director and the Press Secretary to the Chief Executive
of the Information Services Department of the Hong Kong Government (later the Information
Services Department of the Government of the Hong Kong Special Administrative Region)
from July 1996 to March 1999 successively; the Deputy Secretary for Financial Services
Bureau of the Government of the Hong Kong Special Administrative Region from March
1999 to August 2004; the Deputy Secretary for Housing, Planning and Lands Bureau of the
Government of the Hong Kong Special Administrative Region from August 2004 to May 2006;
the Commissioner for Tourism of the Economic Development and Labour Bureau of the
Government of the Hong Kong Special Administrative Region from May 2006 to December
2008; the Permanent Secretary for Financial Services and the Treasury of the Government
of the Hong Kong Special Administrative Region from January 2009 to December 2014. She
currently holds various positions, including a member of the Executive Committee of the
Youth Outreach, an honorary member of the Hong Kong Committee of the United Nations
Children’s Fund, a member of the Management Committee of Endeavour Education Centre
Limited, an honorary fellow of the Hong Kong Securities and Investment Institute and a
member of the Advisory Committee on Corruption of the Independent Commission Against
Corruption of Hong Kong Special Administrative Region. She has been an independent non-
executive Director of the Company since June 2021 with a term of office in this session of
Board from December 2019 to December 2022.
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Name Primary work experience
Gu
Chengzhong
Master’s degree in coastal engineering. From July 1990 to May 1998, he worked in Nanjing
Public Security Bureau. From May 1998 to November 2005, he worked in the technical
supervision office, head office of brokerage management, and Nanjing Hanzhong Road
securities business office of Huatai Securities Limited Liability Company (
华泰证券有限责任
公司
). From November 2005 to January 2019, he served as a deputy general manager (in
charge of work) and general manager of Xi’an North Wenyi Road securities business office,
general manager of Xi’an regional center securities business office, general manager of
Nanjing Ruijin Road securities business office, and general manager of Nanjing branch
of Huatai Securities. He has been the general manager of the compliance and legal
department of the Company since January 2019 and an Employee Representative Supervisor
of the Company since April 2019. He has been the chairman of Supervisory Committee of
the Company since October 2021 with a term of office in this session of the Supervisory
Committee from December 2019 to December 2022.
Zhang Ming
Master’s degree, a senior accountant. He worked at the finance department of Yangzhou No.
2 Power Plant Company Limited (
揚州第二發電有限公司
) from August 1995 to June 1998, served
as the general ledger of the finance department, deputy director of finance department,
director of finance department, deputy chief accountant and head of finance department
of Yangzhou No. 2 Power Plant Company Limited from July 1998 to December 2009; deputy
general manager of the finance department of Jiangsu Guoxin Investment Group (
江蘇省
國信集團
) from December 2009 to December 2016; deputy general manager, chief financial
officer and general manager (chief at group departmental level) of the finance department
of Jiangsu Guoxin Corporation Limited (
江蘇國信股份有限公司
) as well as secretary of the
board from December 2016 to August 2019, and general manager, party committee member,
chief accountant of the finance department of Jiangsu Guoxin Investment Group since
August 2019. Since December 2019, he has been the Supervisor of the Company, with a term
of office in this session of the Supervisory Committee from December 2019 to December
2022.
Yu Lanying
Master’s degree in industrial economics, a principal senior accountant. She served at the
finance department of Nanjing Runtai Industrial Trading Company (
南京潤泰實業貿易公司
)
from August 1993 to August 1996. She pursued master’s studies of industrial economics in
Nanjing University of Science and Technology (
南京理工大學
) from September 1996 to April
1999, served at the finance and audit department of Jiangsu United Trust and Investment
Company (
江蘇聯合信託投資公司
) from May 1999 to December 2002. She worked at the finance
and audit division of Jiangsu Communications Industry Group Co., Ltd. (
江蘇交通產業集團有限
公司
) from January 2003 to September 2004, the finance and audit department of Jiangsu
Communications Holding Co., Ltd. (
江蘇交通控股有限公司
) from October 2004 to May 2008.
She successively served as the vice manager (in charge of work), manager of the finance
and accounting division, deputy chief financial officer (departmental level), chief financial
officer and Party Committee member of Jiangsu Expressway Company Limited (
江蘇寧滬
高速公路股份有限公司
) from June 2008 to November 2016. She served as the deputy general
manager, chief financial officer and Party Committee member of Jiangsu Expressway
Company Limited from November 2016 to March 2018, head of the audit and risk control
department of Jiangsu Communications Holding Co., Ltd. from March 2018 to August 2018
and has served as head of the audit and risk control department and supervisor of audit
center of Jiangsu Communications Holding Co., Ltd. from August 2018 to November 2019
and head of the financial management department of Jiangsu Communications Holding
Co., Ltd. since November 2019. She has served concurrently as Supervisor of the Company
since October 2018, with a term of office in this session of the Supervisory Committee from
December 2019 to December 2022.
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Name Primary work experience
Zhang
Xiaohong
Master’s degree in business administration. Ms. Zhang served as the export sales business
manager of Nanjing Native Produce and Animal Byproducts Import and Export Co., Ltd. (
南京
市土產畜產進出口股份有限公司
) from August 1989 to April 1997; manager assistant and manager
of Jiangsu Xinsu Investment Management Co., Ltd. (
江蘇鑫蘇投資管理有限公司
) from April
1997 to November 2000; department manager of Jiangsu Venture Capital Co., Ltd. (
江蘇省
創業投資有限公司
) from November 2000 to May 2005; senior investment manager, deputy
general manager of the asset management department, general manager of the asset
management department and general manager of the investment operations department
of Govtor Capital Group Co., Ltd. (
江蘇高科技投資集團有限公司
) from May 2005 to July 2020;
and vice general manager of Govtor Capital Group Co., Ltd. since July 2020. She has served
as a Supervisor of the Company since December 2019, with a term of office in this session of
the Supervisory Committee from December 2019 to December 2022.
Fan Chunyan
College degree in financial accounting. Ms. Fan served as the director assistant of the
settlement center of the headquarter of Suning.com Group Co., Ltd. from February 2002 to
February 2004; deputy general manager and financial director for the Guangzhou region
of Suning.com Group Co., Ltd. from February 2004 to August 2011; executive deputy general
manager for the Guangzhou Region and assistant to the executive president of the regional
headquarter of South China of Suning.com Group Co., Ltd. from August 2011 to January 2013;
executive vice president of the e-commerce operation headquarter and executive vice
president of the operation headquarter of Suning.com Group Co., Ltd. from January 2013
to September 2014; vice president of Suning Retail Group (
蘇寧零售集團
) and president of
Internet Platform Company (
互聯網平台公司
) from August 2016 to January 2018; and has
served as vice president of Suning Retail Group and president of Internet Platform Company
as well as general manager of the customer service management center since January
2018. She served as a Director of the Company from October 2018 to December 2019. She has
been a Supervisor of the Company since December 2019 with a term of office in this session
of the Supervisory Committee from December 2019 to December 2022.
Wang Ying
Master’s degree in public administration. She worked in the organization department of the
Municipal Committee of Yangzhong and the Municipal Party Committee of Youth League in
Yangzhong from August 2000 to June 2004. From June 2004 to January 2016, she worked at
the State-owned Assets Supervision and Administration Commission of Jiangsu Provincial
People’s Government, successively serving as the principal staff member of the enterprise
leadership personnel management division, principal staff member of the administrative
office, deputy division chief of the public working division, deputy division chief of the Party
construction work division and deputy division chief of the enterprise leadership personnel
management division, etc. She joined Huatai Securities in January 2016 and has been serving
as the head of the Communist Party union working department of the Company since April
2016. She has been an Employee Representative Supervisor of the Company since December
2019, chairman of labor union of the Company since December 2021, with a term of office in
this session of the Supervisory Committee from December 2019 to December 2022.
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Name Primary work experience
Wang Juan
Master of scientific construction of socialist legal system. From August 1997 to November
2015, she worked in the Publicity Department of the CPC Jiangsu Provincial Committee;
from November 2015 to November 2016, she served as a deputy director of the General
Administration Department of Jiangsu Cultural Investment & Management Group Co.,
Ltd.; from November 2016 to January 2019, she served as a deputy director of the General
Administration Department of Jiangsu Cultural Investment & Management Group Co., Ltd.
(presiding over the work since July 2017), as well as an executive director and the General
Manager of Jiangsu Zijin Cultural and Creative Park Operation and Management Company
Limited; from January 2019 to October 2019, she served as a deputy director (presiding
over the work) of the General Administration Department of Jiangsu Cultural Investment &
Management Group Co., Ltd.; from October 2019 to July 2020, she served as the director of
the Party-Masses Work Department of Jiangsu Cultural Investment & Management Group
Co., Ltd; since July 2020, she has been the Deputy Director of the Office of the Company;
since October 2021, she has been the Employee Representative Supervisor of the Company,
with a term of office in this session of the Supervisory Committee from December 2019 to
December 2022.
Li Shiqian
Doctor of business economics. He used to be a cadre of supervision bureau, chief officer
and deputy director of financial audit division of the internal auditing department, deputy
director of general office information division of the PBOC, deputy director of the news and
information division of the general office, deputy director and director of the financial and
accounting department audit division, director of audit division of the first division of the
supervisory administration bureau in China Banking Regulatory Commission (
中國銀行業監督管理
委員會
), member of Party Committee and secretary of the discipline inspection commission
of Xinjiang Office of China Banking Regulatory Commission, deputy director of the disposal
of illegal fund raising office and deputy director of city bank supervision department of the
CBRC. He was deputy director of the city commercial bank supervision department of China
Banking and Insurance Regulatory Commission (
中國銀行保險監督管理委員會
) from September
2018 to May 2019, the monitor of the city commercial bank supervision department of the
CBIRC from May 2019 to June 2019, and first class monitor of the city commercial bank
supervision department of the CBIRC from June 2019 to December 2019. He joined Huatai
Securities in December 2019 and has been a member of Executive Committee of the
Company since March 2020 with a term of office in this session of senior management from
December 2019 to December 2022.
Sun Hanlin
Master of business administration. Mr. Sun once worked as a clerk, officer and deputy chief
of the cadre section of human resources division of Jiangsu Branch of the PBOC; deputy
chief (presiding) and chief of human resources division of Jiangsu Securities Company
(
江蘇省證券公司
); chief of human resources division, chief of the organization department,
general manager of the human resources department, secretary of the discipline inspection
commission, chief inspection officer, a member of the Party Committee and vice president
of Huatai Securities Limited Liability Company (
华泰证券有限责任公司
). He was vice president,
secretary of the discipline inspection commission and a member of the Party Committee of
the Company from December 2007 to December 2015. He was vice president and a member
of the Party Committee of the Company from December 2015 to November 2019. He was vice
president of the Company from November 2019 to December 2019, and has been a member
of Executive Committee of the Company since December 2019 with a term of office in this
session of senior management from December 2019 to December 2022.
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Jiang Jian
Master of agricultural economics and management. Mr. Jiang once taught at Nanjing
Agricultural University (
南京農業大學
). He worked at Jiangsu Securities Company (
江蘇省證券
公司
) as an employee of the human resources division, chief of the training and education
section of the human resources division, deputy general manager of the stock affairs
department under the investment banking head office, deputy general manager of No. 1
investment banking department, senior manager of No. 1 investment banking department,
deputy general manager of the investment banking head office and general manager of
the issuance department, general manager of the asset management head office, general
manager of the investment banking business Nanjing head office, director of investment
banking business and general manager of Nanjing head office, assistant to the president
and general manager of Shanghai head office, assistant to the president, secretary to
the Board of Directors, assistant to the president and general manager of institutional
customer service department, vice president and secretary to the Board of Directors, and a
member of the Party Committee. He was vice president, secretary to the Board of Directors
and a member of the Party Committee of the Company from December 2007 to April 2017,
vice president and a member of the Party Committee of the Company from April 2017 to
November 2019 and vice president of the Company from November 2019 to December 2019.
He has been a member of Executive Committee of the Company since December 2019 with
a term of office in this session of senior management from December 2019 to December
2022.
Zhang Hui
Doctor of technology economics and management. Mr. Zhang once worked at Dongcheng
District Personnel Exchange Service Center of Beijing (
北京東城區人才交流服務中心
), Brilliance
Group (
華晨集團
) Shanghai Office, Tongshang Holdings Co., Ltd. (
通商控股有限公司
) and
Beijing Lianchuang Investment and Management Co., Ltd. (
北京聯創投資管理有限公司
). He
served as a senior manager of the asset management head office of Huatai Securities
and deputy general manager of the business office at Nantong Yaogang Road. Mr. Zhang
served as the general manager of the business office at Shanghai Ruijin First Road, deputy
general manager of securities investment department of the Company; general manager
of the Company’s general affairs department from July 2012 to January 2016; general
manager of the human resources department and head of the organization department
of the Party Committee of the Company from January 2016 to April 2017; secretary to the
Board of Directors, general manager of the human resources department and head of the
organization department of the Party Committee of the Company from April 2017 to March
2019; and secretary to the Board of Directors of the Company from March 2019 to December
2019. He has been a member of the Executive Committee and secretary to the Board of
Directors of the Company since December 2019, with a term of office in this session of senior
management from December 2019 to December 2022.
Chen
Tianxiang
Master’s degree in control science and engineering. Mr. Chen once was an engineer of
Eastcom Co., Ltd. (
東方通信股份有限公司
), project manager of Nanjing Xinwang Telecom
Tech Co., Ltd. (
南京欣網視訊科技股份有限公司
), senior engineer of the information technology
department, website operation manager of customer service center, head of network
marketing team and assistant to general manager of financial service center of Huatai
Securities. He served as the deputy general manager of the head office of brokerage
business of the Company from April 2015 to August 2015; deputy general manager of the
internet finance department of the Company (in charge of work) from August 2015 to June
2017; and general manager of the internet finance department of the Company since June
2017. He has been a member of the Executive Committee of the Company since February
2020, with a term of office in this session of senior management from December 2019 to
December 2022.
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Name Primary work experience
Jiao Xiaoning
Master’s degree of accounting, an accountant. She once was a cadre of Industrial and
Commercial Bank of China Limited (
中國工商銀行股份有限公司
) Beijing Branch as well as a
cadre, deputy chief clerk and chief clerk of the comprehensive division of the accounting
department of Ministry of Finance (
財政部
). She served as the deputy division chief
of the second division of standards of the accounting department of Ministry of Finance,
investigator of the second division of the system from November 2003 to November 2009;
a cadre, investigator, director and leading cadre of the system division of the accounting
department of the CSRC from November 2009 to January 2014; deputy inspector and deputy
director of the accounting department of the CSRC from January 2014 to January 2020.
She joined Huatai Securities in January 2020 and has been the chief financial officer of the
Company since March 2020, with a term of office in this session of senior management from
December 2019 to December 2022.
Jiao Kai
Doctor of finance. Mr. Jiao was once the manager and director assistant of trading operation
department, director assistant and deputy director of trading management department,
deputy director of executive office and general manager’s secretary, and director of board
of governors office and deputy director of executive office of Shanghai Stock Exchange. He
served as the director of board of governors office and deputy director of executive office,
director of CPC Committee Office and director of board of supervisors office of Shanghai
Stock Exchange from January 2013 to March 2014; director of Beijing center of Shanghai Stock
Exchange from March 2014 to February 2017; general manager of membership department of
Shanghai Stock Exchange from February 2017 to December 2019. He joined Huatai Securities
in December 2019 serving as the general legal counsel of the Company and has been the
chief compliance officer of the Company since February 2020 with a term of office in this
session of senior management from December 2019 to December 2022.
Wang Chong
Master of computer and finance. Mr. Wang served as the principal staff member of the
treasury department/global financial marketing department of Bank of China (
中國銀行
)
from July 1995 to March 2003; middle office chief of internal risk control for European treasury
operations at the London Branch of Bank of China from March 2003 to May 2007; leader of
interest rate derivative product and fixed income risks team of J.P. Morgan Securities (JP
摩根
證券
) from June 2007 to January 2010; risk compliance officer of China International Capital
Corporation (UK) Limited (
中國國際金融有限公司
(
英國
)) from January 2010 to November
2014. He has been general manager of risk management department of the Company from
December 2014 to January 2022 and chief risk officer of the Company since March 2017 with
a term of office in this session of senior management from December 2019 to December
2022.
Explanation of other information
During the Reporting Period, Mr. Han Zhencong was a member of the Executive Committee (proposed) and chief information officer (proposed)
of the Company, and his main work experience is as follows: Mr. Han Zhencong, Doctor of management science and engineering. He served as
a secretary of student affairs office, teacher, deputy secretary of Youth League Committee, director of educational affairs section and director
of teaching and research office and vice-principal of Jiangsu Post and Telecommunications School (
江蘇省郵電學校
). He also served as deputy
director of Jiangsu Telecom Staff Training Center (
江蘇省電信職工培訓中心
), manager of enterprise planning department, office director, general
manager of Wuxi Branch, deputy general manager, member of the Leading Party Members’ Group of China Telecom Jiangsu Company Limited
(
中國電信江蘇公司
). He was the general manager and secretary of the Leading Party Members’ Group of China Telecom Heilongjiang Company
Limited from September 2009 to February 2012. He was the general manager of the government and enterprise customer business division of
China Telecom from February 2012 to July 2016, and was the general manager and secretary of the Party Committee of China Telecom Zhejiang
Company Limited from July 2016 to December 2019. He joined HTSC in December 2019 and was proposed to be a member of the Executive
Committee and the chief information officer of the Company.
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About Us
Operating Analysis
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ANNUAL REPORT 2021
(II) Employment of Directors, Supervisors and senior management at present and
those retired during the Reporting Period
1. Employment at the Shareholders’ companies
Name of
employee
Name of the
Shareholder’s
companies Position
Commencement
of the term of
office
Expiration of the
term of office
Ding Feng
Jiangsu Guoxin
Investment Group
Limited
General manager of the
finance department
March 8, 2018
Chen Yongbing
Jiangsu
Communications
Holding Co., Ltd.
Head of the
development and
reform department
September 23, 2018
September 22,
2021
Ke Xiang
Govtor Capital Group
Co., Ltd.
Deputy general
manager, party
committee member,
general legal counsel
August 17, 2020
Zhang Ming
Jiangsu Guoxin
Investment Group
Limited.
Party committee
member, chief
accountant
October 18, 2020
Yu Lanying
Jiangsu
Communications
Holding Co., Ltd.
Head of the financial
management
department
November 22, 2019
Zhang Xiaohong
Govtor Capital Group
Co., Ltd.
Deputy general
manager
July 8, 2020
Xu Qing
Jiangsu Re-guarantee
Group Co., Ltd. (
江蘇省
信用再擔保集團有限公司
)
Party committee
member, chairman
of the supervisory
committee
August 18, 2020
Zhai Jun
Jiangsu Re-guarantee
Group Co., Ltd. (
江蘇省
信用再擔保集團有限公司
)
Party committee
member, vice president
July 17, 2021
Explanation of the
employment at
the Shareholders’
Companies
Nil
HUATAI SECURITIES
132
2. Employment at other companies
Name of
employee Name of other companies Position
Commencement
of the term of
office
Expiration of
the term of
office
Zhang Wei
Zking Property & Casualty Insurance Co.,
Ltd. (
紫金財產保險股份有限公司
)
Chairman of
the supervisory
committee
May 15, 2009
February 24,
2021
Zhou Yi
CSOP Asset Management Limited (
南方
東英資產管理有限公司
)
Chairman
November 7,
2017
AssetMark Financial Holdings, Inc. Director October 31, 2016
Huatai Financial Holdings (Hong Kong)
Limited
Director
November 28,
2006
China Southern Asset Management Co.,
Ltd. (
南方基金管理股份有限公司
)
Director May 19, 2021
Ding Feng
Jiangsu United Credit Service Co., Ltd. (
江
蘇省聯合徵信有限公司
)
Director June 14, 2019
Jiangsu Guoxin Credit Financing
Guarantee Co., Ltd (
江蘇省國信信用融資
擔保有限公司
)
Director August 12, 2019
Zking Property & Casualty Insurance Co.,
Ltd. (
紫金財產保險股份有限公司
)
Director
February 20,
2021
Chen
Yongbing
Jiangsu Yunshan Capital Management
Co., Ltd. (
江蘇雲杉資本管理有限公司
)
Chairman & Legal
representative
May 6, 2020
October 29,
2021
Jiangsu Expressway Company Limited
(
江蘇寧滬高速公路股份有限公司
)
Director April 8, 2018 May 11, 2021
Jiangsu Railway Group Co., Ltd. (
江蘇省
鐵路集團有限公司
)
Director May 17, 2018
Jiangsu Port Group Co., Ltd. (
江蘇省港口
集團有限公司
)
Director July 9, 2018
Jiangsu Financial Leasing Co., Ltd. (
江蘇
金融租賃股份有限公司
)
Supervisor March 17, 2018
Jiangsu United Credit Service Co., Ltd. (
江
蘇省聯合徵信有限公司
)
Director June 26, 2019
Lian Life Insurance Co., Ltd. (
利安人壽保險
股份有限公司
)
Director
November 18,
2020
Ke Xiang
Jiangsu Addor Huijing Asset
Management Co., Ltd. (
江蘇毅達匯景資產
管理有限公司
)
Director
November 4,
2020
Jiangsu Govtor Asset Management Co.,
Ltd. (
江蘇高投資產管理有限公司
)
Director
December 8,
2020
Suzhou Jinling Nanlin Hotel Co., Ltd. (
蘇
州金陵南林飯店有限責任公司
)
Director April 1, 2017
October 28,
2021
Jiangsu Fenghai New Energy Seawater
Desalination Development Co., Ltd. (
江
蘇豐海新能源淡化海水發展有限公司
)
Director
November 25,
2020
Jiangsu Wanhao Real Estate
Development Co., Ltd. (
江蘇萬豪房地產開
發有限公司
)
Legal representative,
chairman
March 26, 2021
October 18,
2021
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ANNUAL REPORT 2021
Name of
employee Name of other companies Position
Commencement
of the term of
office
Expiration of
the term of
office
Hu Xiao
Alibaba Group Holding Limited
Managing director
of strategic
investment
department
January 1, 2020
Tianxianpei (Shanghai) Technology Co.,
Ltd. (
天鮮配
(
上海
)
科技有限公司
)
Director
November 11,
2019
September 5,
2021
Shanghai Wanxiang Culture
Development Co., Ltd. (
上海萬象文化發展
有限公司
)
Director May 22, 2019 April 20, 2021
Shanghai Wanxiang Culture Distribution
Co., Ltd. (
上海萬象文化配送有限公司
)
Director May 7, 2019
Guangzhou Wanzhixiang Logistics Co.,
Ltd. (
廣州萬之象物流有限公司
)
Director June 21, 2019 June 10, 2021
Dianwoba Holdings Limited Director May 30, 2020
YTO Express Group Co., Ltd. (
圓通速遞股
份有限公司
)
Director
February 25,
2021
Jiangsu Kangzhong Auto Parts Co., Ltd.
(
江蘇康眾汽配有限公司
)
Director
September 30,
2021
Wang Tao
CMB Wealth Management Company
Limited (
招銀理財有限責任公司
)
Director and
president
November 1,
2019
Zhu Xuebo
China Southern Asset Management Co.,
Ltd. (
南方基金管理股份有限公司
)
Deputy secretary of
the Party Committee
December 10,
2020
Chen
Chuanming
Nanjing University
Professor of Business
School
November 1,
2006
Nanjing Iron & Steel Co., Ltd. (
南京鋼鐵股
份有限公司
)
Independent
director
May 6, 2016
GCL System Integration Technology Co.,
Ltd. (
協鑫集成科技股份有限公司
)
Independent
director
March 31, 2016
Febuary 9,
2021
Shanghai Dehui Group Co., Ltd. (
上海德
匯集團有限公司
)
Independent
director
March 1, 2016
Leysen Jewelry Co., Ltd. (
萊紳通靈珠寶股
份有限公司
)
Director May 14, 2019
December 15,
2021
Liu Yan
Beijing Tian Yuan Law Firm (
北京市天元律
師事務所
)
Partner January 1, 2002
Huaxin Cement Co., Ltd. (
華新水泥股份有
限公司
)
Independent
director
September 26,
2014
April 23, 2021
WuXi Pharma Tech Co., Ltd. (
無錫藥明康
德新藥開發股份有限公司
)
Independent
director
March 17, 2017
HUATAI SECURITIES
134
Name of
employee Name of other companies Position
Commencement
of the term of
office
Expiration of
the term of
office
Chen Zhibin
Southeast University
Professor of School
of Economics and
Management
July 1, 2012
Jiangsu Phoenix Publishing & Media
Corporation Limited (
江蘇鳳凰出版傳媒股
份有限公司
)
Independent
director
May 10, 2018
Jiangsu Sainty Corp., Ltd. (
江蘇舜天股份
有限公司
)
Independent
director
May 15, 2020
Bank of Jiangsu Co., Ltd. (
江蘇銀行股份有
限公司
)
External supervisor October 10, 2020
Jiangsu Jiangnan Rural Commercial
Bank Co., Ltd. (
江蘇江南農村商業銀行股份
有限公司
)
Independent
director
October 15, 2021
Wang
Jianwen
Nanjing University of Aeronautics and
Astronautics
Professor, doctor-
postgraduate
supervisor and
dean of the College
of Humanities and
Social Sciences
May 20, 2016 April 30, 2021
Nanjing University
Professor of the Law
School
May 1, 2021
Changshu Feifan Metalwork Co., Ltd (
常
熟非凡新材股份有限公司
)
Independent
director
April 15, 2021
Tongfu Microelectronics Co., Ltd. (
通富微
電子股份有限公司
)
Independent
director
December 16,
2021
Zhang Ming
Jiangsu Guoxin Corporation Limited (
江
蘇國信股份有限公司
)
Supervisor August 20, 2019
Jiangsu International Trust Corporation
Limited (
江蘇省國際信託有限責任公司
)
Director August 28, 2019
Jiangsu International Talents Advisory
Services Co., Ltd. (
江蘇省國際人才諮詢服
務有限公司
)
Director
February 20,
2016
February 4,
2021
Jiangsu Sainty Corp., Ltd. (
江蘇舜天股份
有限公司
)
Supervisor July 12, 2019
Suzhou Industrial Park Co., Ltd. (
蘇州工業
園區股份有限公司
)
Supervisor June 24, 2015
Tongmei Datang Tashan II Power
Generation Company Limited (
同煤大唐
塔山第二發電有限責任公司
)
Director
September 17,
2019
February 4,
2021
Yangzhou No. 2 Power Plant Company
Limited (
揚州第二發電有限責任公司
)
Director June 5, 2018
February 4,
2021
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Name of
employee Name of other companies Position
Commencement
of the term of
office
Expiration of
the term of
office
Zhang Ming
Jiangsu Guoxin Yangzhou Power
Generation Co., Ltd. (
江蘇國信揚州發電有
限責任公司
)
Director June 5, 2018
February 4,
2021
China Eastern Airlines Jiangsu Limited
(
中國東方航空江蘇有限公司
)
Director
December 30,
2020
Jiangsu Guoxin Group Finance Co., Ltd.
(
江蘇省國信集團財務有限公司
)
Director
December 24,
2020
Yu Lanying
Jiangsu Expressway Company Limited
(
江蘇寧滬高速公路股份有限公司
)
Chairman of
the supervisory
committee
April 8, 2018 May 11, 2021
Jiangsu Re-guarantee Group Co., Ltd.
(
江蘇省信用再擔保集團有限公司
)
Supervisor May 27, 2018
Jiangsu Salt Industry Group Co., Ltd. (
江
蘇省鹽業集團有限責任公司
)
Chairman of
the supervisory
committee
December 3,
2018
Jiangsu Jinsuzheng Investment and
Development Co., Ltd. (
江蘇金蘇證投資發
展有限公司
)
Director
December 3,
2018
Bank of Nanjing Co., Ltd. (
南京銀行股份有
限公司
)
Director
September 16,
2020
Zhang
Xiaohong
Jiangsu Addor Equity Investment Fund
Management Co., Ltd. (
江蘇毅達股權投資
基金管理有限公司
)
Director March 10, 2021
Jiangsu Proprietary Technology
Exchange Center Co., Ltd. (
江蘇省技術產
權交易市場有限公司
)
Director January 5, 2018
Jiangsu Talent Innovation and Venture
Service Center Co., Ltd. (
江蘇省人才創新
創業服務中心有限公司
)
Legal representative,
director
September 9,
2019
Jiangsu Govtor Asset Management Co.,
Ltd. (
江蘇高投資產管理有限公司
)
Legal representative,
chairman
August 26, 2021
Jiangsu Xinxin Retail Innovation Fund
(Limited Partnership) (
江蘇新新零售創新
基金
(
有限合夥
))
Designated
representative of
executive partner
August 26, 2021
Jiangsu Govtor Venture Capital
Management Co., Ltd. (
江蘇高投創業投資
管理有限公司
)
Legal representative,
chairman
December 13,
2021
Fan
Chunyan
Suning.com Group Co., Ltd.
Vice president of
Suning Retail Group
and president of
Internet Platform
Company
August 16, 2016
General
manager of the
customer service
management
center
January 29, 2018
HUATAI SECURITIES
136
Name of
employee Name of other companies Position
Commencement
of the term of
office
Expiration of
the term of
office
Gu
Chengzhong
Huatai Purple Gold Investment Co., Ltd.
(
華泰紫金投資有限責任公司
)
Supervisor January 18, 2019
Jiangsu Equity Exchange Co., Ltd. (
江蘇
股權交易中心有限責任公司
)
Supervisor March 18, 2020
Sun Hanlin
Jiangsu Equity Exchange Co., Ltd. (
江蘇
股權交易中心有限責任公司
)
Chairman March 1, 2021
Jiang Jian
Bank of Jiangsu Co., Ltd. (
江蘇銀行股份有
限公司
)
Director May 16, 2012
Zhang Hui
China Southern Asset Management Co.,
Ltd. (
南方基金管理股份有限公司
)
Director October 18, 2016
Chen
Tianxiang
Huatai Securities (Shanghai) Asset
Management Co., Ltd. (
華泰證券
(
上海
)
資產管理有限公司
)
Director March 30, 2018
Jiao
Xiaoning
AssetMark Financial Holdings, Inc. Chairman April 21, 2020
Huatai Securities (Shanghai) Asset
Management Co., Ltd. (
華泰證券
(
上海
)
資產管理有限公司
)
Director August 10, 2020
Wang
Chong
Huatai International Financial Holdings
Company Limited (
華泰國際金融控股有限
公司
)
Director
February 28,
2018
Huatai Financial Holdings (Hong Kong)
Limited (
華泰金融控股
(
香港
)
有限公司
)
Chief risk officer July 30, 2018
Huatai Securities USA Holdings, Inc. Director
September 28,
2018
Huatai Securities (USA), Inc. Director
September 28,
2018
Xu Qing
Jiangsu Addor Equity Investment Fund
Management Co., Ltd. (
江蘇毅達股權投資
基金管理有限公司
)
Supervisor February 9, 2017
February 10,
2021
Lee Chi
Ming
Benington Capital Partners Limited (
柏
寧頓資本有限公司
)
Managing partner
and director
February 11, 2020
DIT Group Limited (
中民築友智造科技集
團有限公司
) (formerly known as China
Minsheng Drawin Technology Group
Limited (
中民築友科技集團有限公司
)
Independent non-
executive director
December 30,
2014
Chung Ying Theatre Company (HK)
Limited (
中英劇團有限公司
)
Director
December 10,
2015
Cango Inc.
Independent non-
executive director
July 31, 2018
Wanlian Securities Co., Ltd. (
萬聯證券股
份有限公司
)
Independent
director
April 12, 2019
Explanation
of other
jobs
Nil
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(III) Remuneration of the Directors, Supervisors and senior management
(IV) Changes in Directors, Supervisors and senior management
Decision-making procedures
of remuneration of the
Directors, Supervisors and
senior management
The Remuneration and Appraisal Committee of the Board is responsible
for advising the Board on the remuneration structure and policies of the
Directors and senior management of the Company. The Board makes
decisions on matters relating to the remuneration of and reward and
punishment of senior management in accordance with relevant policies,
and matters relating to the remuneration of Directors and Supervisors
shall be determined at the general meeting.
The basis for determining the
remuneration of the Directors,
Supervisors and senior
management
The external Directors and external Supervisors of the Company do not
receive remuneration from the Company; standard of remuneration of
the independent Directors is determined with reference to that of the
listed peers and based on actual situation of the Company; remuneration
of internal Directors, employee Supervisors and the senior management
applies relevant policies of governing authorities and the remuneration
assessment system of the Company, and determined in accordance with
job responsibilities and the result of annual performance, as it is linked to
position and performance.
Actual payments of
remuneration of the Directors,
Supervisors and senior
management
Please refer to “Changes in shareholding structure and remuneration
of current and resigned Directors, Supervisors and senior management
during the Reporting Period” in this report for details
Total remuneration actually
obtained by all Directors,
Supervisors and senior
management at the end of
the Reporting Period
Approximately RMB53.1151 million
Name Position Change Reason for Change
Ke Xiang Non-executive Director Elected
Elected at the First Extraordinary General
Meeting in 2021
Au King Chi Independent Director Elected
Elected at the 2020 Annual General
Meeting
Gu
Chengzhong
Chairman of the Supervisory
Committee
Elected Elected by the Supervisory Committee
Wang Juan Employee Representative Supervisor Elected
Elected by the congress of workers and
staff
Xu Qing Non-executive Director Resigned
Due to work arrangements, he will no
longer serve as a non-executive Director
of the Company
Lee Chi Ming Independent Director Resigned
Due to the expiration of his term of
office, he will no longer serve as an
independent Director of the Company
Zhai Jun
Chairman of the Supervisory
Committee, Employee
Representative Supervisor
Resigned
Due to work arrangements, he will
no longer serve as Chairman of
the Supervisory Committee and an
employee Supervisor of the Company
HUATAI SECURITIES
138
Notes:
1. On February 8, 2021, the Company considered and approved the Resolution on the Election of Mr. Ke Xiang as a Non-executive Director of the
Fifth Session of the Board of the Company at the first extraordinary general meeting in 2021, and elected Mr. Ke Xiang as a non-executive Director
of the fifth session of the Board of the Company. Mr. Ke Xiang has replaced Mr. Xu Qing to serve as a non-executive Director of the fifth session of
the Board of the Company from February 8, 2021 to the end of the term of the current session of the Board.
2. On June 22, 2021, the Resolution on the Election of an Independent Non-executive Director of the Fifth Session of the Board of the Company
was considered and approved at the 2020 Annual General Meeting of the Company, pursuant to which Ms. Au King Chi was elected as an
independent non-executive Director of the fifth session of the Board of the Company. Ms. Au King Chi has replaced Mr. Lee Chi Ming to serve as
an independent non-executive Director of the fifth session of the Board of the Company from June 22, 2021, and her term of office shall be ended
at the end of the term of the current session of the Board. Upon the retirement of Mr. Lee Chi Ming, the Audit Committee of the Board of the
Company only comprises two members, which temporarily shall not comply with the Rule 3.21 of the Listing Rules that (i) the Audit Committee
shall have at least three members, (ii) the majority of its members shall be independent non-executive directors and (iii) the chairman shall
be an independent non-executive director as required. Save for the above, the retirement of Mr. Lee Chi Ming did not cause the number of
members of the Board of the Company to fall below the statutory minimum quorum, and did not affect the normal operation of the Company
and the Board of the Company. On June 29, 2021, the seventeenth meeting of the fifth session of the Board of the Company has considered and
approved the Resolution in relation to the proposal on adjustment to the composition of certain special committees under the fifth session of
the Board of the Company. After the adjustment to the composition of the Audit Committee, the Audit Committee of the Board of the Company
comprises three members, which has fully complied with the requirements of the three aforementioned rules.
3. On October 29, 2021, the Supervisory Committee of the Company received the written resignation application from Mr. Zhai Jun, the chairman
of the Supervisory Committee and the Employee Representative Supervisor. Due to the change of work arrangement, Mr. Zhai Jun has tendered
his resignation as the Chairman of the fifth session of the Supervisory Committee and the Employee Representative Supervisor of the Company.
On the same day, the Supervisory Committee of the Company received a Notice on the Election Results for New Employee Representative
Supervisor of the Fifth Session of the Supervisory Committee from the Employee Representatives’ Meeting of the Company, at which Ms. Wang
Juan was elected as the Employee Representative Supervisor for the fifth session of the Supervisory Committee of the Company. Ms. Wang Juan
replaced Mr. Zhai Jun from October 29, 2021 in performing the duties of Employee Representative Supervisor of the fifth session of the Supervisory
Committee of the Company, until the end of the term of the fifth session of the Supervisory Committee. On the same day, the Company
convened the eleventh meeting of the fifth session of the Supervisory Committee and resolved to elect Mr. Gu Chengzhong as the Chairman of
the fifth session of the Supervisory Committee of the Company. Mr. Gu Chengzhong replaced Mr. Zhai Jun from October 29, 2021 in performing
the duties of the Chairman of the fifth session of the Supervisory Committee of the Company, until the end of the term of the fifth session of the
Supervisory Committee.
Save as disclosed above, the Company did not appoint or dismiss any Director, Supervisor and senior
management during the Reporting Period. Meanwhile, there is no change of information about the Directors,
Supervisors and chief executives which shall be disclosed pursuant to Rule 13.51(2) of the Listing Rules.
(V) As of the end of the Reporting Period, none of the incumbent Directors,
Supervisors and senior management or Directors, Supervisors or senior
management who resigned from office during the Reporting Period had been
subject to any penalty imposed by the securities regulatory authorities during the
last three years
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ANNUAL REPORT 2021
Meeting
Convening
date Meeting form and place Meeting motion Status
The Twelfth
Meeting of the
Fifth Session of
the Board
January
29, 2021
By means of teleconference
To consider the resolution on the Establishment of Industrial Fund by
Huatai Purple Gold Investment Co., Ltd., a wholly-owned subsidiary of the
Company.
The resolution
was
considered
and approved
The Thirteenth
Meeting of the
Fifth Session of
the Board
February
8, 2021
By means of teleconference
To consider the resolution on Adjustment to the Composition of Certain
Special Committees of the Fifth Session of the Board of the Company.
The resolution
was
considered
and approved
The
Fourteenth
Meeting of the
Fifth Session of
the Board
March 23,
2021
By means of onsite & video meetings.
Address: Large Conference Room, Floor
12, Building 1, Huatai Securities Square,
No. 228, Middle Jiangdong Road, Nanjing;
Medium Conference Room, Beijing
Branch Office of Huatai Securities, Floor 18,
Building A, China Pacific Insurance Plaza,
No. 28 Fengsheng Alley, Xicheng District,
Beijing; Simulated Video Conference
Room, Shanghai Branch Office of Huatai
Securities, Floor 25, Poly Plaza, No. 18,
Dongfang Road, Pudong New Area,
Shanghai; Simulated Video Conference
Room, Shenzhen Branch Office of Huatai
Securities, 42/F, Fund Mansion, No. 5999
Yitian Road, Shenzhen; Simulated Video
London Conference Room, Huatai
Financial Holdings (Hong Kong) Limited,
62/F, The Center, 99 Queen’s Road Central,
Hong Kong.
1. To consider the 2020 Work Report of the Senior Management of the
Company;
2. To consider the 2020 Final Financial Report of the Company;
3. To consider the 2021 Financial Budget Report of the Company;
4. To consider the proposal on the 2020 profit distribution of the
Company;
5. To consider the resolution on the Provision for Impairment of Assets;
6. To consider the 2020 Work Report of the Board of the Company;
7. To consider the resolution on the 2020 Annual Report of the Company;
8. To consider the resolution on the 2020 Annual Compliance Report of
the Company;
9. To consider the resolution on the 2020 Annual Risk Management Report
of the Company;
10. To consider the resolution on the 2020 Annual Internal Control
Evaluation Report of the Company;
11. To consider the resolution on the Special Report on Information
Technology Management of the Company for 2020;
12. To consider the resolution on the 2020 Corporate Social Responsibility
Report of the Company;
13. To consider the proposal on the estimated ordinary transactions with
related parties of the Company for 2021;
14. To consider the proposal on the estimated investment amount for the
proprietary business of the Company for 2021;
15. To consider the Internal Audit Work Plan of the Company for 2021;
16. To consider the resolution on the reappointment of the accounting
firm by the Company;
17. To consider the Resolution in Relation to the Adjustment to the
Restricted Share Incentive Scheme of A Shares of the Company;
18. To consider the Resolution on Granting Restricted A Shares to the
Incentive Participants;
19. To consider the Report on Performance Assessment and Remuneration
of Directors of the Company for 2020;
20. To consider the Report on Execution of Duty, Performance Assessment
and Remuneration of the Senior Management of the Company for 2020;
21. To consider the resolution on convening the 2020 Annual General
Meeting of the Company;
22. Debriefing of the Work Report of Independent Directors of the
Company for 2020;
23. Debriefing of the Report on Performance of Duties by the Audit
Committee of the Board of the Company for 2020;
24. Debriefing of the Work Report of the Chief Compliance Officer of the
Company for 2020;
25. Debriefing of the Work Report on Anti-money Laundering of the
Company for 2020;
26. Debriefing of the Report on Internal Audit of the Company for 2020;
27. Review of the Report on Net Capital and Other Risk Control Indicators
of the Company for 2020.
All resolutions
were
considered
and approved
V. MEETINGS OF THE BOARD CONVENED DURING THE REPORTING
PERIOD
HUATAI SECURITIES
140
Meeting
Convening
date Meeting form and place Meeting motion Status
The Fifteenth
Meeting of the
Fifth Session of
the Board
April 29,
2021
By means of onsite & video meetings.
Address: Large Conference Room, Floor
12, Building 1, Huatai Securities Square,
No. 228, Middle Jiangdong Road, Nanjing;
Conference Room No. 3, Research
Institute, Beijing Branch Office of Huatai
Securities, Floor 9, Building A, China Pacific
Insurance Plaza, No. 28 Fengsheng Alley,
Xicheng District, Beijing; Simulated Video
Conference Room, Shanghai Branch
Office of Huatai Securities, Floor 25, Poly
Plaza, No. 18, Dongfang Road, Pudong
New Area, Shanghai; Simulated Video
Conference Room, Shenzhen Branch
Office of Huatai Securities, 42/F, Fund
Mansion, No. 5999 Yitian Road, Shenzhen;
Simulated Video London Conference
Room, Huatai Financial Holdings (Hong
Kong) Limited, 62/F, The Center, 99
Queen’s Road Central, Hong Kong.
1. To consider the resolution on the First Quarterly Report of the Company
for 2021;
2. To consider the resolution on Using Part of the Shares of Bank of
Jiangsu Co., Ltd. as Deposits for Margin and Securities Refinancing.
All resolutions
were
considered
and approved
The Sixteenth
Meeting of the
Fifth Session of
the Board
May 20,
2021
By means of teleconference
1. To consider the proposal on the election of independent non-executive
Directors of the fifth session of the Board of the Company;
2. To consider the proposal to increase the agenda for the 2020 Annual
General Meeting of the Company.
All resolutions
were
considered
and approved
The
Seventeenth
Meeting of the
Fifth Session of
the Board
June 29,
2021
By means of teleconference
1. To consider the resolution on the “14th Five-Year” Strategic Development
Plan of the Company;
2. To consider the resolution on Adjustment to the Composition of Certain
Special Committees of the Fifth Session of the Board of the Company.
All resolutions
were
considered
and approved
The Eighteenth
Meeting of the
Fifth Session of
the Board
August 27,
2021
By means of onsite & video meetings.
Address: Large Conference Room,
Floor 12, Building 1, Huatai Securities
Square, No. 228, Middle Jiangdong Road,
Nanjing; Conference Room No. 3, Huatai
Securities, Floor 9, Building A, China Pacific
Insurance Plaza, No. 28 Fengsheng Alley,
Xicheng District, Beijing; Simulated Video
Conference Room, Shanghai Branch
Office of Huatai Securities, Floor 25, Poly
Plaza, No. 18, Dongfang Road, Pudong
New Area, Shanghai; Simulated Video
Conference Room, Shenzhen Branch
Office of Huatai Securities, 42/F, Fund
Mansion, No. 5999 Yitian Road, Shenzhen;
Simulated Video Beijing Conference
Room, Huatai Financial Holdings (Hong
Kong) Limited, 62/F, The Center, 99
Queen’s Road Central, Hong Kong.
1. To consider the resolution on the 2021 Interim Report of the Company;
2. Examination on the Report on Net Capital and Other Risk Control
Indicators of the Company for the First Half of 2021.
The resolution
was
considered
and approved
The
Nineteenth
Meeting of the
Fifth Session of
the Board
October
29, 2021
By means of onsite & video meetings.
Address: Large Conference Room,
Floor 12, Building 1, Huatai Securities
Square, No. 228, Middle Jiangdong Road,
Nanjing; Conference Room No. 3, Huatai
Securities, Floor 9, Building A, China Pacific
Insurance Plaza, No. 28 Fengsheng Alley,
Xicheng District, Beijing; Simulated Video
Conference Room, Shanghai Branch
Office of Huatai Securities, Floor 25, Poly
Plaza, No. 18, Dongfang Road, Pudong
New Area, Shanghai; Simulated Video
Conference Room, Shenzhen Branch
Office of Huatai Securities, 42/F, Fund
Mansion, No. 5999 Yitian Road, Shenzhen;
Simulated Video Singapore Conference
Room, Huatai Financial Holdings (Hong
Kong) Limited, 42/F, The Center, 99
Queen’s Road Central, Hong Kong.
To consider the Resolution on the Third Quarterly Report of the Company
for 2021.
The resolution
was
considered
and approved
The Twentieth
Meeting of the
Fifth Session of
the Board
December
1, 2021
By means of teleconference
1. To consider the resolution on the establishment of a foundation;
2. To consider the resolution on the amendments to the Administrative
Measures for External Donations of Huatai Securities Co., Ltd.;
3. To consider the resolution on the acquisition of 100% equity interest in
Shanghai Shengju Asset Operation and Management Co., Ltd. (
上海盛鉅資
產經營管理有限公司
).
All resolutions
were
considered
and approved
Note: Details of relevant announcements on the resolutions of the Board can be found on the website of the Shanghai Stock Exchange
(http:// www.sse.com.cn), the HKEXnews website of the HKEX (http://www.hkexnews.hk) and our Company’s website (http://www.htsc.com.cn)
and China Securities Journal, Shanghai Securities News, Securities Daily as well as Securities Times.
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VI. MEETINGS OF THE SUPERVISORY COMMITTEE CONVENED
DURING THE REPORTING PERIOD
Meeting
Convening
date Meeting form and place Meeting motion Status
The Seventh
Meeting
of the Fifth
Session
of the
Supervisory
Committee
February
2, 2021
By means of on-site meeting.
Small Conference Room, Floor 12,
Building 1, Huatai Securities Square, No.
228 Middle Jiangdong Road, Nanjing.
To consider the resolution on the Publicity and the Verification Opinion of the
Incentive Participants of the Restricted Share Incentive Scheme of A Shares
of the Company.
The
resolution
was
considered
and
approved
The Eighth
Meeting
of the Fifth
Session
of the
Supervisory
Committee
March 23,
2021
By means of on-site meeting.
Small Conference Room, Floor 12,
Building 1, Huatai Securities Square, No.
228 Middle Jiangdong Road, Nanjing.
1. To consider the 2020 Work Report of the Supervisory Committee;
2. To consider the proposal on the 2020 Profit Distribution of the Company;
3. To consider the resolution on the Provision for Impairment of Assets;
4. To consider the resolution on the 2020 Annual Report of the Company;
5. To consider the resolution on the 2020 Annual Internal Control Evaluation
Report of the Company;
6. To consider the Resolution in Relation to the Adjustment to the Restricted
Share Incentive Scheme of A Shares of the Company;
7. To consider the Resolution on Granting Restricted A Shares to the Incentive
Participants;
8. To consider the Report on the Performance Assessment and Remuneration
of Supervisors of the Company for 2020;
9. Debriefing of the Report on Internal Audit of the Company for 2020;
10. Debriefing of the Internal Audit Work Plan of the Company for 2021.
All
resolutions
were
considered
and
approved
The Ninth
Meeting
of the Fifth
Session
of the
Supervisory
Committee
April 29,
2021
By means of on-site meeting.
Small Conference Room, Floor 12,
Building 1, Huatai Securities Square, No.
228 Middle Jiangdong Road, Nanjing.
To consider the resolution on the First Quarterly Report of the Company for
2021.
The
resolution
was
considered
and
approved
The Tenth
Meeting
of the Fifth
Session
of the
Supervisory
Committee
August 27,
2021
By means of on-site meeting.
Small Conference Room, Floor 12,
Building 1, Huatai Securities Square, No.
228 Middle Jiangdong Road, Nanjing.
To consider the resolution on the 2021 Interim Report of the Company.
The
resolution
was
considered
and
approved
The Eleventh
Meeting
of the Fifth
Session
of the
Supervisory
Committee
October
29, 2021
By means of on-site meeting.
Small Conference Room, Floor 12,
Building 1, Huatai Securities Square, No.
228 Middle Jiangdong Road, Nanjing.
1. To consider the Resolution on the Third Quarterly Report of the Company
for 2021;
2. To consider the resolution on the election of chairman of the Fifth Session
of the Supervisory Committee of the Company.
All
resolutions
were
considered
and
approved
Note: Details of relevant announcements on the resolutions of the Supervisory Committee can be found on the website of the Shanghai Stock
Exchange (http://www.sse.com.cn), the HKEXnews website of the HKEX (http://www. hkexnews.hk) and our Company’s website (http://www.htsc.
com.cn) and China Securities Journal, Shanghai Securities News, Securities Daily as well as Securities Times.
HUATAI SECURITIES
142
VII. PERFORMANCE OF DUTIES OF DIRECTORS
(I) Attendance of Directors at Board Meetings and General Meetings
Name of
Director
Whether
or not he/
she is an
independent
Director
Attendance at Board meetings
Attendance
at general
meetings
Times of
attendance
at Board
meetings
during
the year
Attendance
in person
Attendance
by means of
teleconference
Attendance
by proxy
Absence
Whether
or not he/
she
failed to
attend the
meeting in
person for
two
consecutive
times
Times of
attendance
at general
meetings
Zhang Wei No 9 9 5 – – No 2
Zhou Yi No 9 9 5 – – No –
Ding Feng No 9 7 5 2 – No 1
Chen
Yongbing
No 9 6 5 3 – Yes 2
Ke Xiang No 8 7 4 1 – No –
Hu Xiao No 9 7 5 2 – No –
Wang Tao No 9 6 5 3 – Yes –
Zhu Xuebo No 9 9 5 – – No 1
Chen
Chuanming
Yes 9 9 5 – – No 1
Liu Yan Yes 9 7 5 2 – No –
Chen Zhibin Yes 9 9 5 – – No 1
Wang
Jianwen
Yes 9 9 5 – – No 2
Au King Chi Yes 4 4 2 – – No –
Xu Qing No 1 1 1 – – No –
Lee Chi Ming Yes 5 5 3 – – No –
Explanation on Directors who failed to attend the Board meetings in person twice in succession
During the Reporting Period, Mr. Chen Yongbing and Mr. Wang Tao failed to attend the Board meetings in person for two consecutive times due
to business engagement but appointed other Directors in writing to exercise the voting rights on their behalf.
Number of Board meetings held within the year 9
Of which: Number of on-site meetings -
Number of meetings held by teleconference 5
Number of meetings held on-site and via teleconference 4
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(II) No Objections Raised by Directors to Relevant Matters of the Company
(III) Others
1. Board of Directors and the Operation Management
(1) Composition of the Board
According to the relevant regulations of the Articles of Association, the Board shall be composed of 13
Directors, with the number of independent Directors accounting for at least 1/3 of the total number. On
December 16, 2019, the fifth session of the Board was elected in the Company’s first extraordinary general
meeting in 2019. During the Reporting Period, as considered and approved at the first extraordinary general
meeting in 2021 and the 2020 Annual General Meeting of the Company, the Company made adjustments
to the fifth Board members. As of the end of the Reporting Period, there were 13 members in the Board,
including 3 executive Directors (Mr. Zhang Wei, Mr. Zhou Yi, Mr. Zhu Xuebo), 5 non-executive Directors (Mr.
Ding Feng, Mr. Chen Yongbing, Mr. Ke Xiang, Ms. Hu Xiao, Mr. Wang Tao) and 5 independent non-executive
Directors (Mr. Chen Chuanming, Ms. Liu Yan, Mr. Chen Zhibin, Mr. Wang Jianwen, Ms. Au King Chi).
The Directors are elected or changed via the general meeting and shall formally take office from the date
on which their appointments are approved by the general meeting. A Director shall serve a term of three
years. Directors are eligible for re-election upon the expiration of their terms. However, the successive terms
of independent non-executive Directors may not be more than 6 years. According to relevant regulations
of Rule 3.13 of the Hong Kong Listing Rules, the Company has received the annual written confirmation
from each independent non-executive Director with regards to his/her independence. Based on these
confirmations and the relevant information available to the Board, the Company continues to confirm their
independence.
The Company covered liability insurance for Directors, Supervisors and senior management and other
related staff held responsible according to the authorization of the 2014 annual general meeting, to protect
them from the compensation liabilities that may arise from performing their duties and to reasonably avoid
management risk and legal risk which the Directors, Supervisors and senior management may be exposed
to, and to encourage them to earnestly fulfill their duties and responsibilities.
(2) Duties and Responsibilities of the Board
The Board is the decision-making body of the Company and is accountable to the general meeting.
According to the Articles of Association, the Board shall exercise the following major functions and powers: to
convene general meetings and report work to general meetings; to carry out the resolutions of the general
meetings; to resolve on the business & investment plans of the Company; to prepare annual financial
budget plan and final accounting plan of the Company; to prepare profit distribution plan and loss remedy
plan of the Company; to formulate proposals of the Company on increasing or decreasing the registered
capital, issuing bonds or other securities and the listing plan; to formulate plans for material acquisition,
purchase of shares of the Company, merger, division, dissolution or transformation of the Company; to
determine, within the authority granted by the general meeting, such matters as external investment,
acquisition and disposal of assets, asset mortgage, external guarantee, entrusted wealth management,
related-party transactions, etc.; to decide on the establishment of the Company’s internal management
organizations; to appoint or dismiss the Company’s chief executive officer and secretary to the Board; to
appoint or dismiss other senior management of the Company including member of Executive Committee,
chief financial officer, chief compliance officer, chief risk officer and chief information officer according to
the nominations by the president, and to decide the matters on their remuneration and rewards as well
as penalties; to set up the basic management system of the Company; to formulate the proposals for any
amendment to the Articles of Association; to manage the Company’s information disclosure; to propose to
the general meeting the appointment or replacement of the accounting firms which provide audit services
for the Company; to listen to the work reports of the Executive Committee and review its work; to decide
the Company’s compliance management objectives and assume the responsibility for the effectiveness
HUATAI SECURITIES
144
of compliance management, including but not limited to: considering and approving the basic system for
compliance management and the annual compliance report, evaluating the effectiveness of compliance
management, urging to solve problems in compliance management, establishing the mechanism for direct
communication with the chief compliance officer, guaranteeing the chief compliance officer’s assessment
on the senior management, various departments and branches, subsidiaries at all levels, Compliance
Department and compliance management personnel; to formulate the risk control system of the Company;
to determine Directors’ remunerations and distribution plan thereof; to decide to purchase Company’s
shares due to the circumstances specified in the Articles of Association of the Company; and to exercise
other functions and powers authorized by laws, administrative regulations, departmental rules or the Articles
of Association.
(3) Duties and Responsibilities of the Operation Management
The Board is responsible for overall strategies and governance of the Company, and the Operation
Management is responsible for the concrete implementation of the development strategies and
policies passed by the Board as well as the daily operation and management of the Company. The
Operation Management is the supreme operation management body established by the Company
for implementation of the routes and policies determined by the Board, and shall exercise the following
functions and powers according to the Articles of Association: to carry out Company’s operation policies
determined by the Board and decide on material matters during the operation and management of
the Company; to formulate and implement the financial budget plan of the Company; to formulate final
accounting plan, profit distribution plan and loss remedy plan of the Company; to formulate the registered
capital change plans and bonds insurance plans of the Company; to formulate plans for merger, division,
change and dissolution of the Company; to formulate Company’s business plans and plans for investment,
financing and disposal of assets, and report to the Board for approval according to authorization; to
formulate Company’s plan for establishment of internal management bodies; to prepare and approve the
employee benefits plans and promotion and demotion plans; and to exercise other functions and powers
authorized by the Board.
(4) Implementation by the Board of Resolutions Passed at General Meetings
1) On February 8, 2021, the Resolution on General Mandate for Domestic and Overseas Debt Financing
Instruments of the Company was considered and approved at the Company’s first extraordinary general
meeting of 2021. According to the resolution, after being approved by Approval for the Registration of Public
Issuance of Corporate Bonds by Huatai Securities Co., Ltd. to Professional Investors (Zheng Jian Xu Ke [2020]
No. 2057) of the CSRC, the Company publicly issued nine tranches of corporate bonds totaling RMB38.5
billion during the Reporting Period.
2) On February 8, 2021, the Resolution on General Mandate for Domestic and Overseas Debt Financing
Instruments of the Company was considered and approved at the Company’s first extraordinary general
meeting of 2021. According to the resolution, during the Reporting Period, Pioneer Reward Limited, a
subsidiary of Huatai International (an overseas wholly-owned subsidiary of the Company) issued one
tranche of USD bonds totaling USD1.4 billion.
3) On February 8, 2021, the Resolution on General Mandate for Domestic and Overseas Debt Financing
Instruments of the Company was considered and approved at the Company’s first extraordinary general
meeting of 2021. According to the resolution, after being approved by the Notice on the Matter regarding
Maximum Outstanding Balance of Short-term Debentures of Huatai Securities Co., Ltd. (Yin Shi Chang [2019]
No. 132) from the Financial Market Department of the People’s Bank of China, during the Reporting Period, the
Company issued six tranches of short-term debentures in aggregate with totaling RMB20 billion.
4) On February 8, 2021, the Resolution on General Mandate for Domestic and Overseas Debt Financing
Instruments of the Company was considered and approved at the Company’s first extraordinary general
meeting of 2021. According to the resolution, after being approved by Approval for the Registration of Public
Issuance of Subordinated Bonds by Huatai Securities Co., Ltd. to Professional Investors (Zheng Jian Xu Ke
[2020] No. 2599) of the CSRC, the Company publicly issued one tranche of subordinated bonds totaling
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RMB9 billion during the Reporting Period.
5) On February 8, 2021, the Resolution on General Mandate for Domestic and Overseas Debt Financing
Instruments of the Company was considered and approved at the Company’s first extraordinary general
meeting of 2021. According to the resolution, after being approved by Approval for the Registration of Public
Issuance of Perpetual Subordinated Corporate Bonds by Huatai Securities Co., Ltd. to Professional Investors
(Zheng Jian Xu Ke [2021] No. 2918) of the CSRC, the Company publicly issued three tranches of perpetual
subordinated corporate bonds totaling RMB10 billion during the Reporting Period.
6) On February 8, 2021, the Resolution on General Mandate for Domestic and Overseas Debt Financing
Instruments of the Company was considered and approved at the Company’s first extraordinary general
meeting of 2021. According to the resolution, after being approved by Approval for the Registration of Public
Issuance of Short-term Corporate Bonds by Huatai Securities Co., Ltd. to Professional Investors (Zheng Jian
Xu Ke [2020] No. 1904) of the CSRC, the Company publicly issued ten tranches of short-term corporate
bonds totaling RMB40 billion during the Reporting Period.
7) On February 8, 2021, a series of resolutions including the Resolution on the Restricted Share Incentive
Scheme of A Shares of Huatai Securities Co., Ltd. (Draft) and its Summary was considered and approved
at the Company’s first extraordinary general meeting of 2021. According to the resolution, the Company
completed the registration for the grant of restricted A Shares during the Reporting Period.
8) On June 22, 2021, the Resolution on the 2020 Profit Distribution Plan of the Company was considered and
approved at the Company’s 2020 Annual General Meeting. According to the resolution, during the Reporting
Period, the Company distributed cash dividend of RMB4.00 (tax inclusive) per 10 shares based on the
Company’s existing total share capital of 9,076,650,000 shares after deducting the A Shares deposited in the
special account for securities repurchase and temporarily not used in the equity incentive scheme, with the
total cash dividend of RMB3,612,548,602.00. During the Reporting Period, the profit distribution plan has been
completed.
9) On June 22, 2021, the Resolution on the Estimated Ordinary Transactions with Related Parties of the
Company for 2021 was considered and approved at the Company’s 2020 Annual General Meeting. For
details of the actual performance of ordinary transactions with related parties of the Company during the
Reporting Period according to the resolution, please refer to “Material Related-party Transactions” under
“Major Events” in this report.
10) On June 22, 2021, the Resolution on the Estimated Investment Amount of the Company’s Proprietary
Business for 2021 was considered and approved at the Company’s 2020 Annual General Meeting. According
to the resolution, during the Reporting Period, related business indicators of the Company were controlled
within the authorized scope of the shareholders’ general meeting.
11) On June 22, 2021, Resolution on the Re-appointment of the Accounting Firm of the Company was
considered and approved at the Company’s 2020 Annual General Meeting. According to the resolution,
during the Reporting Period, the Company continued to appoint KPMG Huazhen LLP to handle 2021 annual
financial statements and internal control auditing services for the Company and its holding subsidiaries,
and to issue the audit report of A shares, internal control audit report and GDR audit report; the Company
also appointed KPMG for auditing services of H Shares for the Company, and to issue the audit report of H
Shares.
(5) Training of Directors
Trainings are provided to Directors on an on-going basis. The Company attaches great importance
to the ongoing training of Directors, to ensure that the Directors form an appropriate understanding of
the operation of the Company and its business and they understand their duties and responsibilities as
directors as required by the CSRC, the Shanghai Stock Exchange, the Hong Kong Stock Exchange, and as
stipulated in the Articles of Association and other relevant laws and regulatory requirements. During the
Reporting Period, the Company’s Directors attached great importance to updating professional knowledge
and skills, to adapt to the needs of the development of the Company. In addition to participation in regular
trainings held by regulatory organizations and self-regulatory organizations and complete required ongoing
HUATAI SECURITIES
146
trainings, the Office of the Board also prepared the Work Newsletter of the Company regularly and sent it
to the Directors to enable them to understand the latest policies and regulations and industrial trends and
enhance their knowledge and understanding of the culture and operation of the Company. In addition,
the Company continuously improved the internal work procedures, established the multi-level information
communication mechanism, and set up the information communication platform, in order to ensure the
access to information for Directors to perform their duties and constantly improve their overall performance
capability.
During the Reporting Period, the main trainings of the Directors of the Company were as follows:
Director
Name Date Organizer Content
Training
Location
Zhang
Wei
2021-02-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-04-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-05-26
Jiangsu Securities
Regulatory Bureau,
Jiangsu Association
for Public Companies
Topics on “key minority” for listed
companies – training on non-compliance
cases including insider dealing and market
manipulation
Nanjing, Jiangsu
(network video
training)
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Nanjing, Jiangsu
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Nanjing, Jiangsu
Zhou Yi
2021-02-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-04-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Nanjing, Jiangsu
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Nanjing, Jiangsu
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Director
Name Date Organizer Content
Training
Location
Ding
Feng
2021-02-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-04-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-05
Jiangsu Securities
Regulatory Bureau,
Jiangsu Association
for Public Companies
Training on special ratification of
non-compliance in relation to stock
transactions
Nanjing, Jiangsu
(network video
training)
2021-11-17 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Nanjing, Jiangsu
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Nanjing, Jiangsu
Chen
Yongbing
2021-02-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-04-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Nanjing, Jiangsu
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Nanjing, Jiangsu
Ke Xiang
2021-02-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-04-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-05
Jiangsu Securities
Regulatory Bureau,
Jiangsu Association
for Public Companies
Training on special ratification of
non-compliance in relation to stock
transactions
Nanjing, Jiangsu
(network video
training)
HUATAI SECURITIES
148
Director
Name Date Organizer Content
Training
Location
Ke Xiang
Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Nanjing, Jiangsu
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Nanjing, Jiangsu
Hu Xiao
2021-02-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Shanghai
2021-04-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Shanghai
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Shanghai
2021-11-17 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Shanghai
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Shanghai
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Shanghai
Wang
Tao
2021-02-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Shenzhen
2021-04-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Shenzhen
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Shenzhen
2021-11-17 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Shenzhen
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Shenzhen
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Shenzhen
Zhu
Xuebo
2021-02-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Shenzhen
2021-04-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Shenzhen
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Shenzhen
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Director
Name Date Organizer Content
Training
Location
Zhu
Xuebo
2021-11-17 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Shenzhen
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Shenzhen
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Shenzhen
Chen
Chuanming
2021-02-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-04-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Nanjing, Jiangsu
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Nanjing, Jiangsu
2021-12-17
China Association for
Public Companies
Training on legal liabilities and risk
precaution for independent directors of
listed companies
Nanjing, Jiangsu
(network video
training)
Liu Yan
2021-02-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Beijing
2021-04-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Beijing
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Beijing
2021-11-17 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Beijing
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Beijing
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Beijing
2021-12-17
China Association for
Public Companies
Training on legal liabilities and risk
precaution for independent directors of
listed companies
Beijing (network
video training)
HUATAI SECURITIES
150
Director
Name Date Organizer Content
Training
Location
Chen
Zhibin
2021-02-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-04-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-12
to 2021-11-
19
Shanghai Stock
Exchange
Following-up training for independent
directors of listed companies
Nanjing, Jiangsu
(network video
training)
2021-11-17 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Nanjing, Jiangsu
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Nanjing, Jiangsu
2021-12-17
China Association for
Public Companies
Training on legal liabilities and risk
precaution for independent directors of
listed companies
Nanjing, Jiangsu
(network video
training)
Wang
Jianwen
2021-02-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-04-23 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Nanjing, Jiangsu
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Nanjing, Jiangsu
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Nanjing, Jiangsu
2021-12-17
China Association for
Public Companies
Training on legal liabilities and risk
precaution for independent directors of
listed companies
Nanjing, Jiangsu
(network video
training)
Au King
Chi
2021-06-16
Hong Kong Securities
and Investment
Institute
Training on latest regulatory policies of
Hong Kong banking system
Hong Kong
2021-07-06 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Hong Kong
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and Strategies
ANNUAL REPORT 2021
Director
Name Date Organizer Content
Training
Location
Au King
Chi
2021-07-07
to 2021-07-
09
Shanghai Stock
Exchange
Qualification training for independent
directors of companies listed on the Main
Board
Hong Kong
(network video
training)
2021-08-06
Hong Kong Securities
and Investment
Institute
Relevant policies and measures of Hong
Kong International Finance Centre
Hong Kong
2021-10-22
and 2021-
10-29
Practising
Governance Limited
Training on macro environment, regulation
updates and ESG etc.
Hong Kong
2021-11-17 Clifford Chance
Introduction to latest regulatory laws in the
Hong Kong capital market
Hong Kong
2021-11-17
Financial Reporting
Council of Hong Kong
Training on non-compliance cases of
financial statements of companies listed
on the Stock Exchange
Hong Kong
2021-11-23
Huatai Securities Co.,
Ltd.
Training on regulations in relation to stock
transactions by directors, supervisors and
senior management
Hong Kong
2021-12-17
China Association for
Public Companies
Training on legal liabilities and risk
precaution for independent directors of
listed companies
Hong Kong
(network video
training)
2. Chairman and Chief Executive Officer
Chairman and Chief Executive Officer are two different positions, and according to the provisions of the
Articles of Association, the chairman is the legal representative of the Company, responsible for managing
the operations of the Board, ensuring that the Board acts in compliance with the best interests of the
Company, ensuring the effective operation of the Board, ensuring that the Board has fulfilled its due duties
and discussions about all significant and appropriate matters are held so that Directors get accurate, timely
and explicit data. Chief Executive Officer manages the daily work of the Company, attends Board meetings,
reports to the Board and exercises the functions and powers according to the responsibility scope of the
Chief Executive Officer.
According to provisions of Rule A.2.1 (renumbered as Rule C.2.1 with effect from January 1, 2022) of Corporate
Governance Code, the roles of the chairman and chief executive shall be separate and should not be
performed by the same individual at the same time. On December 16, 2019, at the first meeting of the
fifth session of the Board, the Company elected Mr. Zhang Wei as the chairman of the fifth session of the
Board and continued to hire Mr. Zhou Yi as the Chief Executive Officer and the Chairman of the Executive
Committee of the Company. The Board thinks that this management structure is effective and has enough
checks and balances for the Company’s operation.
3. Non-executive Directors
As of the end of the Reporting Period, the Company has 5 non-executive Directors and 5 independent non-
executive Directors. For details of their terms of office, please refer to “Changes in shareholding structure
and remuneration of current and resigned Directors, Supervisors and senior management during the
Reporting Period” under “Directors, Supervisors and senior management” under “Corporate Governance” in
this report.
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4. Performance of Duties by Independent Non-executive Directors
(1) Works regarding periodic reports
In the annual report compilation process, all independent non-executive Directors of the Company have
performed full duties according to the requirements of the CSRC and the provisions of the Working System
for Independent Directors of the Company.
On January 19, 2021, at the first meeting of the Audit Committee of the fifth session of the Board for 2021, the
Audit Committee listened to the report on the arrangement of audit progress of the audit work in 2020, the
focus of annual audit and the situation of pre-audit made by relevant personnel from KPMG Huazhen LLP,
and made discussion and communication with relevant personnel from KPMG Huazhen LLP. Two out of the
three members in the Audit Committee are independent non-executive Directors, who put forward opinions
and suggestions to the supplement and perfection of the Auditing Plan of the Company for 2020 from
different perspectives in their roles as members of the Audit Committee and as independent non-executive
Directors.
On February 26, 2021, at the second meeting of the Audit Committee of the fifth session of the Board for 2021,
the Audit Committee considered and approved the Resolution on the Auditing Plan of the Company for
2020. Two out of the three members in the Audit Committee are independent non-executive Directors, who
examined the Auditing Plan of the Company for 2020 from different perspectives in their roles as members
of the Audit Committee and as independent non-executive Directors.
On March 19, 2021, at the third meeting of the Audit Committee of the fifth session of the Board for 2021, the
Audit Committee examined the Company’s Annual Financial Statement in 2020, Annual Report in 2020,
Annual Internal Control Evaluation Report in 2020, Report on Performance of Duties by the Audit Committee
of the Board in 2020 and Internal Audit Work Plan in 2021, etc., reviewed the “Key Audit Matters” and other
important issues involved in the Company’s 2020 Annual Audit Report, and listened to the report on the
internal audit work of the Company in 2020. Two out of the three members in the Audit Committee are
independent non-executive Directors, who examined relevant resolutions and gave opinions from different
perspectives in their roles as members of the Audit Committee and as independent non-executive Directors.
On August 3, 2021, at the fifth meeting of the Audit Committee of the fifth session of the Board for 2021, the
Audit Committee listened to the report on the 2021 mid-term review of the Company’s H+G Shares and
the audit plan of the Company’s 2021 A+H+G Share annual report made by relevant personnel from KPMG
Huazhen LLP, and made discussion and communication with relevant personnel from KPMG Huazhen LLP.
Two out of the three members in the Audit Committee are independent non-executive Directors, who made
discussions, exchanged views and made comments and suggestions from different perspectives in their
roles as members of the Audit Committee and as independent non-executive Directors.
(2) Consideration on related-party transactions
On March 23, 2021, all the independent non-executive Directors of the Company gave independent opinions
on the Proposal on the Ordinary Transactions with Related Parties of the Company for 2021. They were of the
opinion that the relevant related-party transactions were fair with reference to the market price for pricing
the transactions without compromising the interests of the Company and other shareholders; the relevant
related-party transactions were all derived in the ordinary operation of the Company and would help carry
out the businesses of the Company and bring certain income to the Company; the procedures for approval
for relevant related-party transactions complied with relevant laws, regulations and regulatory documents
as well as the Articles of Association and the Management System for Related-party Transactions of the
Company.
(3) Other performance of duties
On March 23, 2021, all the independent non-executive Directors of the Company gave special clarification
and independent opinions on external guarantees carried out by the Company in 2020, gave special
clarification and independent opinions on fund intercourse between the Company and the controlling
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ANNUAL REPORT 2021
shareholders and other related parties, gave independent opinions on the Proposal on Profit Distribution
of the Company in 2020, gave independent opinions on Annual Internal Control Evaluation Report of
the Company in 2020, gave independent opinions on the re-appointment of the accounting firm, gave
independent opinions on the provision for impairment of assets of the Company and gave independent
opinions on the adjustment to the restricted share incentive scheme of A Shares and the grant thereunder
of the Company. On May 20, 2021, all the independent non-executive Directors of the Company gave
independent opinions on the nomination of Ms. Au King Chi as the candidate for an independent non-
executive Director of the fifth session of the Board of the Company.
VIII. SPECIAL COMMITTEES UNDER THE BOARD
(I) Members of the special committees of the Board
Five special committees, namely, Development Strategy Committee, Compliance and Risk Management
Committee, Audit Committee, Nomination Committee and Remuneration and Appraisal Committee were
established under the Board, members of which were as follows:
The Development Strategy Committee (a total of five members): Zhang Wei, Zhou Yi, Chen Yongbing, Hu
Xiao and Wang Tao and Mr. Zhang Wei is the chairman (convener) of the Development Strategy Committee;
The Compliance and Risk Management Committee (a total of three members): Zhou Yi, Ke Xiang and Wang
Jianwen and Mr. Zhou Yi is the chairman (convener) of the Compliance and Risk Management Committee;
The Audit Committee (a total of three members with the independent non-executive Directors accounting
for more than 1/2): Chen Zhibin, Ding Feng and Au King Chi and Mr. Chen Zhibin is the chairman (convener)
of the Audit Committee;
The Nomination Committee (a total of three members with the independent non-executive Directors
accounting for more than 1/2): Chen Chuanming, Zhu Xuebo and Liu Yan and Mr. Chen Chuanming is the
chairman (convener) of the Nomination Committee;
The Remuneration and Appraisal Committee (a total of three members, all are independent non-executive
Directors): Chen Chuanming, Liu Yan and Chen Zhibin and Mr. Chen Chuanming is the chairman (convener)
of the Remuneration and Appraisal Committee.
(II) Performance of duties by the special committees of the Board
1. Development Strategy Committee of the Board
The major duties of the Development Strategy Committee of the Board include: 1. Understanding and
grasping the overall situation of the Company’s operation; 2. Understanding, analyzing and grasping the
current situation of international and domestic industries; 3. Understanding and grasping the relevant
domestic policies; 4. Studying the short-term, medium-term and long-term development strategies of the
Company or relevant issues; 5. Providing consultancy advice on the Company’s long-term development
strategies, major investments, reforms and other major decisions; 6. Considering and approving the special
research reports on development strategies; 7. Publishing daily research reports in a regular or irregular
manner; 8. Other duties assigned by the Board.
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During the Reporting Period, the Development Strategy Committee of the Board convened a total of two
meetings, the details of which were as follows:
Attendance of members of the Development Strategy Committee of the Board at the meetings held during
the Reporting Period:
Session
Convening
date Meeting contents
Important comments
and suggestions
Other conditions on
execution of duty
The first meeting of the
Development Strategy
Committee of the fifth
session of the Board for
2021
June 29,
2021
To consider the
Resolution on the “14th
Five-Year” Strategic
Development Plan of
the Company
The Development
Strategy Committee
considered and
approved the
resolution at the
meeting
The meeting was
convened by way of
communication
The second meeting
of the Development
Strategy Committee of
the fifth session of the
Board for 2021
November
29, 2021
To consider the
Resolution on
Sponsoring a
Foundation and
the Resolution on
Amendments to
the Administration
Measures for
Donations of Huatai
Securities Co., Ltd.
The Development
Strategy Committee
considered and
approved the
resolutions at the
meeting
The meeting was
convened by way of
communication
Name Position
Attendance in person/Number of
meetings requiring attendance
Zhang Wei (chairman and convener) Chairman 2/2
Zhou Yi Executive Director 2/2
Chen Yongbing Non-executive Director 2/2
Hu Xiao Non-executive Director 2/2
Wang Tao Non-executive Director 2/2
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2. Compliance and Risk Management Committee of the Board
The main duties of the Compliance and Risk Management Committee of the Board include: 1. Reviewing and
making recommendations on the overall targets and fundamental policies of compliance management
and risk management; 2. Reviewing and making recommendations on the setup of compliance
management and risk management bodies and their duties; 3. Evaluating and making recommendations
on the risks of major decisions which require the Board’s review as well as the solutions to these risks; 4.
Reviewing and making recommendations on the compliance reports and risk assessment reports that
require the Board’s review; 5. Other duties prescribed in the Articles of Association.
During the Reporting Period, the Compliance and Risk Management Committee of the Board convened two
meetings, the details of which were as follows:
Session
Convening
date Meeting contents
Important comments
and suggestions
Other conditions
on execution of
duty
The first meeting of the
Compliance and Risk
Management Committee
of the fifth session of the
Board for 2021
March 22,
2021
1. To consider the Resolution
on the Annual Compliance
Report of the Company in
2020
2. To consider the
Resolution on the Annual
Risk Management Report of
the Company in 2020
3. To consider the Resolution
on Annual Internal Control
Evaluation Report of the
Company in 2020
The Compliance and
Risk Management
Committee
considered and
approved the
resolutions at the
meeting
The meeting
was convened
by way of
communication
The second meeting of
the Compliance and Risk
Management Committee
of the fifth session of the
Board for 2021
August 26,
2021
To consider the Resolution
on the Company’s 2021
Interim Compliance Report
The Compliance and
Risk Management
Committee
considered and
approved the
resolution at the
meeting
The meeting
was convened
by way of
communication
Attendance of members of the Compliance and Risk Management Committee at the meetings held during
the Reporting Period:
Note: The fifth session of the Board convened the thirteenth meeting on February 8, 2021, and considered and approved the Resolution on the
Adjustment to the Composition of Certain Special Committees under the Fifth Session of the Board of the Company. According to the resolution,
Zhou Yi, Ke Xiang and Wang Jianwen became members of the Compliance and Risk Management Committee, and Mr. Zhou Yi is the chairman
(convener) of the Compliance and Risk Management Committee.
Name Position
Attendance in person/Number of
meetings requiring attendance
Zhou Yi (chairman and convener) Executive Director 2/2
Ke Xiang Non-executive Director 2/2
Wang Jianwen
Independent non-executive
Director
2/2
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3. Audit Committee of the Board
The main duties of the Audit Committee of the Board include: 1. Supervising and guiding the audit work.
It shall manage and guide the internal audit work planning and audit team construction, regularly listen
to and review the comprehensive report of audit work, annual audit plan and important audit reports,
make judgements on the truthfulness, accuracy and completeness of the audited financial report, and
submit them to the Board for reviewing. It shall supervise the Company’s financial statement and the
completeness of the Company’s annual report and account, interim report and quarterly report and
review statements as well as major opinions on financial declaration in reports. The Committee shall pay
special attention to the following matters:
①
Changes in accounting policies and practices;
②
Matters
concerning significant judgment;
③
Significant adjustments due to the audit;
④
Assumptions of on-going
operations of the Company and its qualified opinions;
⑤
Compliance with the accounting standards;
and
⑥
Compliance with the listing rules or relevant laws and regulations of the listing place where the
financial reporting shall be made; 2. Proposing the engagement or changing of external audit institutions
and supervising the professional conduct of external audit institutions, so as to ensure the coordination
of internal and external auditors. Moreover, it shall also ensure that the internal audit institution is given
enough resources for operation and appropriate status within the Company and check and supervise its
validity; 3. Considering and putting forward suggestions for the appointment, reappointment, remuneration,
appointment terms and any other issues about the resignation or dismissal of external auditors. It
shall hold the position as the main representative between the Company and the external auditor and
supervise their relationship; 4. Discussing with the external auditors about the nature, scope and relevant
responsibility of audit and frequently check if the audit procedure is valid and whether the external auditor
is objective and independent before carrying out the audit work; 5. Checking the Explanation Letter on
Audit offered by external auditors to the management and any major doubts put forward by the auditors
to the management about the accounting record, financial account or monitoring system as well as the
response of the management and ensure that the Board can timely reply to issues put forward in the
Explanation Letter on Audit offered by external auditors to the management; 6. Checking and monitoring
the Company’s financial supervision, risk management and internal monitoring system and check the
financial and accounting policies and practices of the Company and its subsidiaries; 7. Discussing
the risk management and internal supervision system with the management so as to ensure that the
management has performed its duty and established a valid internal supervision system; studying the
important investigations results and responses of the management related to risk management and
internal supervision system actively or as assigned by the Board of Directors; 8. Reporting the above issues
to the Board; 9. Checking the Company’s following arrangement: Employees of the Company may secretly
raise concerns on irregular conducts about financial reporting, internal monitoring, or other aspects. The
Audit Committee shall ensure that there is appropriate arrangement for the Company to make fair and
independent investigation and take appropriate actions on such issues; 10. Studying other projects defined
by the Board; 11. Other responsibilities according to the Company’s Articles of Association or the Listing rules
or laws and regulations of the place where the Company is listed.
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During the Reporting Period, the Audit Committee of the Board convened seven meetings, the details of
which were as follows:
Session
Convening
date Meeting contents
Important comments
and suggestions
Other conditions on
execution of duty
The first
meeting of
the Audit
Committee
of the fifth
session of the
Board for 2021
January 19,
2021
To listen to the report on the
progress of the audit work in
2020, the focus of annual audit
and the situation of pre-audit
made by relevant personnel
from KPMG Huazhen LLP, and to
discuss and communicate with
relevant personnel from KPMG
Huazhen LLP
Committee member
Lee Chi Ming inquired
about key audit matters
and the work focus.
Committee member
Ding Feng advised
the Company to
pay attention to the
transfer registration
date of the share
allotment of the Bank
of Jiangsu. Committee
member Chen Zhibin
inquired about the
audit arrangements
on subsidiaries in
the United States.
Relevant personnel
of KPMG Huazhen LLP
and the Planning and
Finance Department
of the Company made
detailed explanations.
The meeting was
convened by way
of on-site & video
meetings
The second
meeting of
the Audit
Committee
of the fifth
session of the
Board for 2021
February
26, 2021
To consider the Resolution
on the Auditing Plan of the
Company for 2020
The Audit Committee
considered and
approved the resolution
at the meeting
The meeting was
convened by way of
communication
HUATAI SECURITIES
158
Session
Convening
date Meeting contents
Important comments
and suggestions
Other conditions on
execution of duty
The third
meeting of
the Audit
Committee
of the fifth
session of the
Board for 2021
March 22,
2021
1. To consider the Final Financial
Report of the Company for 2020
2. To consider the Financial
Budget Report of the Company
for 2021
3. To consider the Proposal on
the Profit Distribution Plan of the
Company for 2020
4. To consider the Resolution on
the Provision for Impairment of
Assets
5. To consider the Resolution on
the Annual Financial Statements
of the Company for 2020
6. To consider the Proposal
on the Annual Report of the
Company for 2020
7. To consider the Resolution on
the Internal Control Assessment
Report of the Company for 2020
8. To consider the Proposal on
the Anticipation of Related-Party
Transactions of the Company
for 2021
9. To consider the Proposal
on the Re-appointment of the
Company’s Accounting Firm;
10. To consider the Report on
Performance of Duties of Audit
Committee under the Board of
the Company for 2020
11. To consider the Work Plan
for the Internal Audit of the
Company for 2021
12. To review the Important
Matters Involved in the “Key
Audit Matters” as Set Out in
the Annual Audit Report of the
Company for 2020
13. Debriefing in Relation to the
Internal Audit Report of the
Company for 2020
The Audit Committee
considered and
approved the resolutions
at the meeting.
Committee member
Lee Chi Ming inquired
about the impact of the
opening of the domestic
securities market and
the recognition of audit
reports by the HKEX and
advised the Company
to further improve
the coordination
mechanism on internal
audit and external
audit and adopt
more technologies
to empower audit so
as to provide better
guarantees to the
compliance operation
of the Company.
Committee member
Ding Feng inquired
about the performance
growth of AssetMark,
assumptions on
annual budget and
the audit range of the
audit department.
Committee member
Chen Zhibin inquired
about audit expenses,
audit of related-party
transactions and the
target and positioning
of internal audit.
Relevant personnel
of KPMG Huazhen LLP
and the Planning and
Finance Department
of the Company made
detailed explanations.
The meeting was
convened by way
of on-site & video
meetings
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Session
Convening
date Meeting contents
Important comments
and suggestions
Other conditions on
execution of duty
The fourth
meeting of
the Audit
Committee
of the fifth
session of the
Board for 2021
April 28,
2021
To consider the Resolution on
the Financial Statements for
January to March 2021 of the
Company
The Audit Committee
considered and
approved the resolution
at the meeting.
The meeting was
convened by way of
communication
The fifth
meeting of
the Audit
Committee
of the fifth
session of the
Board for 2021
August 3,
2021
To listen to the report on the
2021 mid-term review of the
Company’s H+G Share and the
Company’s 2021 A+H+G Share
annual audit plan made by
relevant personnel from KPMG
Huazhen LLP, and to discuss and
communicate with relevant
personnel from KPMG Huazhen
LLP
The Audit Committee
considered and
approved the resolution
at the meeting.
Committee member
Ding Feng inquired
about the impact of the
additional information
disclosures from Chinese
companies seeking
a listing on U.S. stock
exchanges by the US
Securities and Exchange
Commission. Committee
member Au King Chi
advised the Company
to pay attention to US
restrictions on overseas
investments by US
investors and inquired
the margin financing
and securities lending
department about the
disposal of academic
course training stocks.
Relevant personnel
of KPMG Huazhen LLP
and the Planning and
Finance Department
of the Company made
detailed explanations.
The meeting was
convened by way
of on-site & video
meetings
The sixth
meeting of
the Audit
Committee
of the fifth
session of the
Board for 2021
August 26,
2021
1. To consider the Resolution on
the Financial Statement of the
Company in the First Half of 2021
2. To consider the Resolution on
Interim Report of the Company
in 2021
The Audit Committee
considered and
approved the resolution
at the meeting.
The meeting was
convened by way of
communication
HUATAI SECURITIES
160
Session
Convening
date Meeting contents
Important comments
and suggestions
Other conditions on
execution of duty
The seventh
meeting of
the Audit
Committee
of the fifth
session of the
Board for 2021
October 28,
2021
To consider the Resolution on
the Financial Statements for
January to September of 2021 of
the Company
The Audit Committee
considered and
approved the resolution
at the meeting.
The meeting was
convened by way of
communication
Attendance of the members of the Audit Committee at the meetings held during the Reporting Period is as
follows:
Note: The fifth session of the Board convened the seventeenth meeting on June 29, 2021, and considered and approved the Resolution on the
Adjustment to the Composition of Certain Special Committees under the Fifth Session of the Board of the Company. According to the resolution,
Chen Zhibin, Ding Feng and Au King Chi became members of the Audit Committee, and Mr. Chen Zhibin is the chairman (convener) of the Audit
Committee.
4. Nomination Committee of the Board
The main duties of the Nomination Committee of the Board include: 1. Reviewing the structure, headcount
and composition (including skills, knowledge and experience) of the Board at least once each year and
making recommendations regarding any proposed changes in the Board in line with the Company’s
strategies; 2. Considering and making suggestions on the criteria and procedures for the selection of
Directors and senior management members; 3. Searching for qualified candidates for Director and
senior management, and selecting from the list of candidates nominated by Directors or making
recommendations to the Board; 4. Reviewing and making suggestions on the qualification requirements
for Directors and senior management; 5. Assessing the independence of independent non-executive
Directors; 6. Making recommendations to the Board on the appointment or reappointment of Directors and
succession planning for Directors (in particular the chairman and the president); 7. Other responsibilities
stipulated in the Articles of Association or as required by the Board.
Name Position
Attendance in person/Number of
meetings requiring attendance
Chen Zhibin (chairman and convener)
Independent non-executive
Director
7/7
Ding Feng Non-executive Director 7/7
Au King Chi
Independent non-executive
Director
3/3
Lee Chi Ming
Independent non-executive
Director (resigned)
4/4
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Session
Convening
date Meeting contents
Important comments
and suggestions
Other conditions on
execution of duty
The first meeting
of the Nomination
Committee of the
fifth session of the
Board for 2021
May 20,
2021
To consider the Resolution
in Relation to the Election
of an Independent Non-
executive Director of the
Fifth Session of the Board of
the Company
The Nomination
Committee considered
and approved the
resolution at the meeting
The meeting was
convened by way of
communication
The second
meeting of the
Nomination
Committee of the
fifth session of the
Board for 2021
December
30, 2021
To consider the Resolution in
Relation to the Election of an
Executive Director of the Fifth
Session of the Board of the
Company
The Nomination
Committee considered
and approved the
resolution at the meeting
The meeting was
convened by way of
communication
During the Reporting Period, the Nomination Committee of the Board convened two meetings, the details of
which were as follows:
5. Remuneration and Appraisal Committee of the Board
The main duties of the Remuneration and Appraisal Committee of the Board include: 1. Reviewing and
providing opinions on the appraisal and remuneration management system for Directors and senior
management, and making recommendations to the Board on the Company’s overall policy and structure
for the remuneration of the Directors and senior management, and on the establishment of a formal and
transparent procedure to develop remuneration policy; 2. Reviewing and approving the management’
remuneration proposals with reference to the Board’s corporate goals and objectives; 3. Conducting
assessment on and making recommendations to the Directors and senior management: making
recommendations on the remuneration packages, including benefits in kind, pensions and compensation
payments (including any compensation payable for loss or termination of office or appointment), for
certain executive Directors and senior management, and making recommendations to the Board on
the remuneration of non-executive Directors; 4. Considering salaries paid by comparable companies,
time commitment and responsibilities and engagement condition elsewhere in the Group; 5. Reviewing
and approving compensation payable to executive Directors and senior management for any loss or
termination of office or appointment to ensure that it is consistent with the relevant contractual terms.
In case of inconsistency with the relevant contractual terms, the compensation shall be fair and not be
excessive; 6. Reviewing and approving compensation arrangements relating to dismissal or removal
Attendance of the members of the Nomination Committee at the meetings held during the Reporting
Period:
Name Position
Attendance in person/Number of
meetings requiring attendance
Chen Chuanming (chairman and
convener)
Independent non-executive
Director
2/2
Zhu Xuebo Executive Director 2/2
Liu Yan
Independent non-executive
Director
2/2
HUATAI SECURITIES
162
Session
Convening
date Meeting contents
Important comments
and suggestions
Other conditions on
execution of duty
The first
meeting of the
Remuneration
and Appraisal
Committee of the
fifth session of the
Board for 2021
March 22,
2021
1. To consider the Report on
Performance Assessment
and Remuneration of the
Directors of the Company in
2020
2. To consider the Report
on Execution of Duty,
Performance Assessment
and Remuneration of the
Senior Management of the
Company in 2020
The Remuneration and
Appraisal Committee
considered and
approved the resolutions
at the meeting
The meeting was
convened by way of
communication
The second
meeting of the
Remuneration
and Appraisal
Committee of the
fifth session of the
Board for 2021
August 26,
2021
To consider the Resolution in
Relation to the Performance
Plan and Target of
the Company’s Senior
Management for 2021
The Remuneration and
Appraisal Committee
considered and
approved the resolution
at the meeting
The meeting was
convened by way of
communication
During the Reporting Period, the Remuneration and Appraisal Committee of the Board convened two
meetings, the details of which were as follows:
Attendance of the members of the Remuneration and Appraisal Committee at the meetings held during
the Reporting Period:
Name Position
Attendance in person/Number of
meetings requiring attendance
Chen Chuanming (chairman and
convener)
Independent non-executive
Director
2/2
Liu Yan
Independent non-executive
Director
2/2
Chen Zhibin
Independent non-executive
Director
2/2
of Directors for misconduct to ensure that they are consistent with the contractual terms. In case of
inconsistency with the relevant contractual terms, the compensation shall be reasonable and appropriate;
7. Ensuring that no Director or any of his/her associates is involved in determining their own remuneration; 8.
Other responsibilities stipulated in the Articles of Association.
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IX. PERFORMANCE OF DUTIES OF SUPERVISORS
The Supervisory Committee is the Company’s supervisory body and is accountable to the Shareholders’
general meeting. The Supervisory Committee is responsible for supervising the financial activities and
internal control of the Company, and supervising the legality and compliance of the performance of duties
by the Board of Directors, operating management and its members in accordance with the Company Law
and the Articles of Association.
In 2021, the Supervisory Committee of the Company strictly complied with the relevant provisions of the
Company Law, the Securities Law and the Company’s Articles of Association, the Rules of Procedures for
the Supervisory Committee and other relevant regulations, to conscientiously perform and independently
exercise the supervisory powers and duties of the Supervisory Committee. In the spirit of being responsible
to all shareholders, the Supervisory Committee effectively supervised the Company’s operating activities,
financial position, major decisions of the Board of Directors and the legality and compliance of the
performance of duties by operating management. It actively protects the interests of the Company and the
shareholders, and escorts the healthy and long-term development of the Company.
(I) Performance of duties by Supervisors
During the Reporting Period, the Supervisory Committee of the Company held 5 meetings. For relevant
information, please refer to “VI. Meetings of the Supervisory Committee Convened During the Reporting
Period” in this section.
During the Reporting Period, all the supervisors of the Company attended the meetings of the Supervisory
Committee, the Board of Directors, and the Shareholders’ general meetings, the details of which were as
follows:
Name of
Supervisor
Attendance at meetings of the Supervisory Committee
Attendance
at Board
meeting
Attendance
at the
general
meeting
Number of
meetings of
Supervisory
Committee
requiring
attendance
Attendance
in person
Attendance
in the way of
teleconference
Attendance
by proxy
Absence
Whether or not
he/ she failed
to attend the
meeting in
person for two
successive
times
Attendance
times
Gu
Chengzhong
5 5 – – –
No
4 2
Zhang Ming
5 1 – 4 –
Yes
– –
Yu Lanying
5 3 – 2 –
No
2 –
Zhang
Xiaohong
5 4 – 1 –
No
3 1
Fan
Chunyan
5 2 – 3 –
Yes
2 –
Wang Ying
5 5 – – –
No
4 2
Wang Juan
1 1 – – –
No
1 –
Zhai Jun
4 3 – 1 –
No
2 2
HUATAI SECURITIES
164
(II) Independent opinions of the Supervisory Committee
During the Reporting Period, the Supervisory Committee convened 5 meetings in total in the whole year, at
which 15 proposals and reports were considered. The Supervisors sat in the Board meetings and general
meetings of the Company, monitored the decision-making process on material matters on a real-time
basis, kept abreast of the management’s implementation of the decisions made by the Board through
carefully reading the reports of the Company, including Work Newsletter (monthly) and Brief Report on Audit
Work (quarterly). On this basis, the Supervisory Committee gave independent opinions on the Company’s
relevant matters as follows:
1. Legal operation
During the Reporting Period, the Company was under legal operation in compliance with relevant laws
and regulations such as the Company Law, the Securities Law and the Articles of Association as well as the
requirements of the Company’s systems. Major operational decisions of the Company were reasonable,
and the decision-making procedures were lawful. The Company established a relatively sound internal
management system and internal control system, under which various regulations were effectively
implemented. During the Reporting Period, the Supervisory Committee found no conducts violating laws,
regulations, the Articles of Association or damaging the interests of the Company and its shareholders
made by Directors and senior management of the Company when performing their duties, and there were
no material risks in the Company.
2. Financial conditions of the Company
During the Reporting Period, the Supervisory Committee of the Company regularly convened meetings
of the Supervisory Committee to review quarterly reports, interim reports, annual financial reports, annual
evaluation reports on internal control and other documents of the Company, and checked the business and
financial conditions of the Company. The Supervisory Committee believed that the financial report of the
Company for 2021 had been audited by KPMG Huazhen LLP which had issued a standard audit report without
qualified opinions. The Company’s financial statements were prepared in compliance with the relevant
requirements of the ASBE, which truly reflected the financial conditions and operational achievements of the
Company. Regular reports were prepared and reviewed in compliance with relevant laws, regulations and
various requirements of the CSRC, the contents of which were true, accurate and complete to reflect the
actual conditions of the Company.
3. Implementation of the System regarding Insider Registration and Management and
Confidentiality
The Company established the System regarding Insider Registration and Management and Confidentiality
of Huatai Securities Co., Ltd. in accordance with relevant laws and regulations. During the Reporting Period,
the Company carried out the registration and management of insider information in an orderly manner
pursuant to the policies. There were no incidents found in the Company in violation of insider registration
and management and confidentiality obligation.
4. Related-party transactions
During the Reporting Period, the related-party transactions of the Company were fair and reasonable, and
Note: During the Reporting Period, Mr. Zhang Ming and Ms. Fan Chunyan failed to attend meetings of the Supervisory Committee in person for two
consecutive times due to business engagement but appointed other supervisors in writing to exercise the voting right on their behalf.
Number of meetings of Supervisory Committee convened during the year 5
Of which: number of meetings held on-site 5
number of meetings in the way of teleconference -
number of meetings held on-site and in the way of teleconference -
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no circumstances impairing interests of the Company and shareholders have been found. When the Board
of Directors of the Company considered related matters, independent directors expressed independent
opinions, affiliated directors abstained from voting, and the voting procedures were legal and valid.
5. Use of funds raised
1) Under the Approval for Issuance and Admission of Global Depository Receipts on the London Stock
Exchange plc by Huatai Securities Co., Ltd. (Zheng Jian Xu Ke [2018] No. 1993) (
《關於核准华泰证券股份有限公
司發行全球存託憑證並在倫敦證券交易所上市的批覆》
(
證監許可
[2018] 1993
號
)) issued by the CSRC, in June 2019,
the Company completed the issuance of 82,515,000 GDRs in total. After deducting the issuing fees, the net
funds raised were US$1,651,595,986.28, which was converted into RMB11,313,036,931.20 at the central parity of
RMB against USD as at the date when the proceeds were received. The abovementioned proceeds have
been all in place as at June 28, 2019 and have been verified by KPMG Huazhen LLP with the KPMG capital
verification report (Yan Zi No. 1900393).
As of the end of the Reporting Period, the funds raised from GDR of the Company were used as below:
RMB3,547,720,085.15 was used to continuously investing in the Company’s current principal businesses,
developing various business segments including wealth management, institutional services, investment
management, and promoting its business transformation and upgrade; RMB1,000,000,000.00 was used to
supplementing working capital and for general corporate purposes; and USD1,013,928,574.46 was used for
supporting the internal and external growth of international business, and expanding overseas strategic
layout. As of December 31, 2021, the planned usage of the Company’s funds raised from issuance of GDRs
was consistent with that disclosed in the GDR prospectus without change. Funds raised from GDR of the
Company were fully utilized, and deregistration procedures for relevant account have been completed.
2) During the Reporting Period, the Company successfully issued nine tranches of corporate bonds of
RMB38.5 billion in total; issued ten tranches of short-term corporate bonds of RMB40 billion in total; issued
one tranche of subordinated bonds of RMB9 billion; issued three tranches of perpetual subordinated bonds
of RMB10 billion; issued six tranches of short-term financing bonds with an accumulative scale of RMB20
billion; issued USD bonds and USD medium-term notes with a total scale of USD1.922 billion. During the
Reporting Period, the Company issued 3,879 income certificates in total with a scale of RMB66.233 billion. As
of the end of the Reporting Period, 872 income certificates continued to exist with a scale of RMB15.363 billion.
All the use of funds raised was consistent with the content disclosed in the prospectus.
6. Share incentive scheme
During the Reporting Period, the Supervisory Committee reviewed the Restricted Share Incentive Scheme
of A Shares of Huatai Securities Co., Ltd. (Draft) and relevant information, verified the list of incentive
participants, subsequent adjustments to the restricted share incentive scheme of A Shares of the Company,
the list of proposed incentive participants and the satisfaction of conditions for the incentive participants
to be granted the equity, and expressed its verification opinions. The incentive scheme is beneficial to
the sustainable development of the Company, and there is no apparent prejudice to the interests of
the Company and all shareholders. The incentive participants are legally and validly qualified, and the
procedures are in compliance with laws and regulations.
7. Review of relevant reports
1) Written reviews and opinions on the annual report of the Company for 2021 prepared by the Board of
Directors were as follows:
The annual report of the Company for 2021 was prepared and reviewed in compliance with the relevant
laws, regulations and requirements of regulatory authorities, the contents of which were true, accurate and
complete and could reflect the actual conditions of the Company.
2) The Supervisory Committee of the Company reviewed the Assessment Report on Internal Control of the
Company for 2021, and had no objections to the contents therein.
HUATAI SECURITIES
166
X. RISKS FOUND BY THE SUPERVISORY COMMITTEE IN THE COMPANY
XI. INFORMATION ABOUT THE STAFF OF THE PARENT COMPANY AND
MAJOR SUBSIDIARIE AS AT THE END OF THE REPORTING PERIOD
(I) Information about the staff
The Supervisory Committee had no objections towards the matters under supervision during the Reporting
Period.
(II) Remuneration policy
The Company attaches importance to external competitiveness and internal fairness of salary incentive,
and implements a remuneration distribution system based on market standards and weighted by
performance evaluation. Staff remuneration of the Company consists of fixed salary, performance bonus,
share incentive and employee benefits. The Company has established and implemented the restricted
share incentive scheme of A Shares in accordance with national laws and regulations, which established
a sound medium and long-term incentive and restraint mechanism, and created a market-oriented
institutional mechanism and development platform to gather core talents.
Note: Due to the internal policies of corporations in the United States, the above statistics do not include those of AssetMark. Number of staff
includes dispatched workers and brokers etc.
Number of staff employed by the parent company 10,506
Number of staff employed by major subsidiaries 3,866
The total number of staff employed 14,372
Number of retired staff of the parent company and its major subsidiaries that
need to be paid for the cost
226
Profession Composition
Profession Number of staff
Operation professionals 9,728
Operation support professionals 1,475
Research and development professionals 3,169
Total 14,372
Education
Level of education Number (persons)
Doctor 140
Master 5,080
Bachelor 6,927
Junior college graduate and below 1,351
Total 13,498
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Pursuant to relevant laws and regulations, the Company makes full payments to social insurances and
housing fund accounts for staff in accordance with laws. Meanwhile, the Company has established the
supplementary medical insurance plan and enterprise annuity plan to improve supplementary medical
care and retirement treatment of staff.
(III) Training programs
In line with the development trend of industry innovation and transformation, the Company continued
to centralize its training on the aspects including professional ability, management capability, business
innovation, technology empowerment and international horizon and its annual training plan was
implemented smoothly. The Company actively responded to the pandemic and organized and carried out
various online and offline professional development trainings such as the BAL Star Battle Camp (BAL
星戰
營
) for managers, the HIPO project for potential employees and the HTSC STAR project for new employees.
It organized business trainings on investment advisory on public and private products, institutional RM
and compliance with business departments. To support the technology empowerment strategy, the
Company established digital talent cultivation systems and launched digital talent training programs at
different levels. Among them, the “HIPO-Talent Program” fintech talent training project is to cultivate leading
fintech professionals with first-rate professionalism, technological capability and leadership. In addition,
the Company effectively utilized the cloud learning platform and optimized its functions to improve staff
experience. It organized 480 live broadcast training sessions on the platform. 1,300,000 participants studied
through the platform and completed 320,000 hours of learning with an average of 41 hours for each
participant.
(IV) No labor outsourcing
XII. PROPOSAL OF PROFIT DISTRIBUTION OR CAPITALIZATION FROM
CAPITAL RESERVE
(I) Formulation, implementation or adjustment of cash dividend policy
Article 262 of the Articles of Association has clarified the Company’s profit distribution policy, the decision-
making process for the profit distribution plan and the decision-making process for adjustments of the
profit distribution policy. The policy of the Company’s profit distribution is: “The Company shall focus on
generating a reasonable investment return to the investors and implements continual and steady policy of
profit distribution; the Company’s profit distribution shall not exceed the scope of accumulated distributable
profits nor impair the Company’s continual operational capability; the Company may distribute dividends
in form of cash, shares or a combination of cash and shares. Except for the special condition under which
the Company plans to conduct material investments or make major cash expenses within the next twelve
months, or other conditions that may result in the fact that the Company fails to comply with the regulatory
requirements regarding net capital, the Company shall distribute its dividends in form of cash if the
Company’s profits for the current year and its accumulated non-distributed profits are positive; for the last
three years, the Company’s accumulated profits distributed in form of cash shall not be less than 30% of
the annual average distributable profit realized for the last three years; upon the proposal by the Board of
Directors and approval by the general meeting, an interim dividend distribution may be made in the form
of cash; the Company may distribute dividends in the form of shares based on the annual profits and cash
flow status and subject to the satisfaction of the lowest ratio for cash dividend and the reasonableness of
the Company’s equity scale.”
For the last three years (including the Reporting Period), the Company did not have any plan or proposal
regarding capitalization from capital reserve to share capital. The details of the profit distribution plan or
proposal of ordinary shares of the Company over the last three years (including the Reporting Period) were
as follows:
HUATAI SECURITIES
168
In 2019, the Company distributed cash dividend of RMB3.00 (tax inclusive) per 10 shares based on the
Company’s total share capital of 9,076,650,000 shares after deducting the number of shares held in the
special account for repurchase of the Company after the closing of the record date of holders of A Shares
for the profit distribution, with the total cash dividend of RMB2,701,394,989.80, representing 30.01% of net profit
attributable to the shareholders of the Parent Company on a consolidated basis for 2019.
In 2020, the Company distributed cash dividend of RMB4.00 (tax inclusive) per 10 shares based on the
Company’s total share capital of 9,076,650,000 shares after deducting the A Shares deposited in the
Company’s special account for securities repurchase and temporarily not used in the equity incentive
scheme, with the total cash dividend of RMB3,612,548,602.00, representing 33.38% of net profit attributable to
the shareholders of the Parent Company on a consolidated basis for 2020. According to relevant provisions
of the Guidelines of Self-regulation of Companies Listed on Shanghai Stock Exchange No. 7 – Repurchase of
Shares (
《上海證券交易所上市公司自律監管指引第
7
號－回購股份》
), the amount of share repurchases effected
by a company in a year shall be deemed as cash dividends and be counted in the calculation of the cash
dividend payout ratio for the year. Accordingly, based on the amount of share repurchases effected by
the Company for 2020 of RMB1,626,402,152.88 (excluding transaction costs), the total cash dividend of the
Company in 2020 amounted to RMB5,238,950,754.88, representing 48.41% of net profit attributable to the
shareholders of the Parent Company on a consolidated basis for 2020.
In 2021, after comprehensive consideration of factors such as the interests of shareholders and the
development of the Company, the 2021 profit distribution proposal of the Company is as follows:
1. The Company will distribute cash dividend of RMB4.50 (tax inclusive) per 10 shares based on the
Company’s existing total share capital of 9,076,650,000 shares after deducting 45,278,495 A Shares
deposited in the special account for securities repurchase and 1,060,973 A Shares to be repurchased and
cancelled (i.e. on the basis of 9,030,310,532 shares), with the total cash dividend of RMB4,063,639,739.40 (tax
inclusive), representing 30.45% of net profit attributable to the shareholders of the Parent Company on a
consolidated basis for 2021. The remaining profit available for distribution to investors will be carried forward
to the next year. According to relevant provisions of the Guidelines of Self-regulation of Companies Listed
on Shanghai Stock Exchange No. 7 – Repurchase of Shares (
《上海證券交易所上市公司自律監管指引第
7
號－
回購股份》
), the amount of share repurchases effected by a company in a year shall be deemed as cash
dividends and be counted in the calculation of the cash dividend payout ratio for the year. Accordingly,
based on the amount of share repurchases effected by the Company for 2021 of RMB48,959,144.00 (excluding
transaction costs), the total cash dividend amounted to RMB4,112,598,883.40, representing 30.81% of net profit
attributable to the shareholders of the Parent Company on a consolidated basis for 2021.
If the total share capital of the Company changes as a result of repurchase and cancellation of shares
granted in the equity incentive during the period from the disclosure date of this proposal to the record
date of the implementation of the dividend distribution, the Company intends to maintain the distribution
ratio per share unchanged and adjust the total distribution accordingly. The remaining profits available for
distribution to investors will be carried forward to the next year.
2. Cash dividend is denominated and declared in RMB and paid to holders of A Shares (including the
depositary of GDRs) and the investors of Southbound Trading in RMB and to holders of H Shares (excluding
the investors of Southbound Trading) in HKD. The actual distribution amount in HKD shall be calculated at
the rate of average basic exchange rate of RMB issued by the PBOC five business days prior to the date of
the 2021 Annual General Meeting of the Company.
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(II) Particulars of cash dividend policy
Whether it is in compliance with the requirements of the Articles of Association
or the resolutions of general meetings
√Yes No
Whether the dividend distribution criteria and proportion are well-defined and
clear
√Yes No
Whether the relevant decision-making procedures and mechanism are
complete
√Yes No
Whether the independent directors fulfil their duties and play their roles √Yes No
Whether the minority shareholders have the opportunities to sufficiently voice
their opinions and make requests, and whether their legal interests are fully
protected
√Yes No
Summary of event Inspection indexes
On December 31, 2020, the eleventh meeting of the fifth session of the Board
and the sixth meeting of the fifth session of the Supervisory Committee of the
Company have considered and approved the Resolution on the Restricted
Share Incentive Scheme of A Shares of the Company (the “Incentive Scheme”),
respectively, and agreed to submit it to the general meeting of the Company
for consideration. On February 2, 2021, the Incentive Scheme was approved
by the Jiangsu Provincial Government State-owned Assets Supervision and
Administration Commission. On February 8, 2021, the 2021 First Extraordinary
General Meeting of the Company has considered and approved the relevant
resolution on the Incentive Scheme.
Announcements No. Lin
2021-001, 2021-015, 2021-
016
On March 23, 2021, the fourteenth meeting of the fifth session of the Board
and the eighth meeting of the fifth session of the Supervisory Committee of
the Company have considered and approved the Resolution in Relation to
the Adjustment to the Restricted Share Incentive Scheme of A Shares of the
Company and the Resolution on Granting Restricted A Shares to the Incentive
Participants, respectively. The Company was of the view that the grant
conditions under the Incentive Scheme have been satisfied, and determined
March 29, 2021 as the grant date.
Announcements No. Lin
2021-029, 2021-030
XIII. SHARE INCENTIVE SCHEME, EMPLOYEE STOCK OWNERSHIP PLAN
OR OTHER EMPLOYEE INCENTIVES MEASURES AND THEIR IMPLICATION
(I) Incentives disclosed in ad hoc announcements and without subsequent
development or changes
HUATAI SECURITIES
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(II) Incentives not disclosed in ad hoc announcements or with subsequent
development
Other incentive measures
For the employee incentive measures adopted by AssetMark, a controlled company of the Group, please
refer to Note 62(b) Share-based payments of an overseas subsidiary to the consolidated financial
statements in this report.
(III) Share incentive granted to the Directors and senior management during the
Reporting Period
Summary of event Inspection indexes
On April 7, 2021, the Company received the Certificate of Registration of
Changes in Securities issued by China Securities Depository and Clearing
Corporation Limited Shanghai Branch to set out the record date being April
6, 2021 and granted 45,488,000 Restricted A Shares to 810 eligible incentive
participants at the Grant Price of RMB9.10 per Share. The incentive participants
granted under the Incentive Scheme include the Directors, senior management
and other core key employees of the Company, but exclude the non-executive
Directors (including independent Directors) and Supervisors of the Company.
The Company has completed the registration of the grant of the Restricted A
Shares.
Announcement No. Lin
2021-032
Name Position
Number of
restricted
Shares held
at the
beginning of
the year
Number of
restricted
Shares
newly
granted
during the
Reporting
Period
Grant price
of restricted
Shares (RMB)
Unlocked
Shares
Locked
Shares
Number of
restricted
Shares held
at the end
of the period
Market
price at the
end of the
Reporting
Period
(RMB)
Zhou Yi
Director and senior
management
– 72.00 9.10 – 72.00 72.00 17.76
Li Shiqian
Senior
management
– 60.00 9.10 – 60.00 60.00 17.76
Sun Hanlin
Senior
management
– 60.00 9.10 – 60.00 60.00 17.76
Jiang Jian
Senior
management
– 60.00 9.10 – 60.00 60.00 17.76
Zhang Hui
Senior
management
– 60.00 9.10 – 60.00 60.00 17.76
Chen
Tianxiang
Senior
management
– 60.00 9.10 – 60.00 60.00 17.76
Jiao
Xiaoning
Senior
management
– 50.00 9.10 – 50.00 50.00 17.76
Jiao Kai
Senior
management
– 50.00 9.10 – 50.00 50.00 17.76
Wang
Chong
Senior
management
– 50.00 9.10 – 50.00 50.00 17.76
Total
/
– 522.00 / – 522.00 522.00 /
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(IV) Appraisal mechanism for the senior management and the establishment and
implementation of incentive mechanism during the Reporting Period
During the Reporting Period, the performance appraisal on the Company’s senior management was
carried out on a yearly basis in the principle of sharing goals, comprehensively benchmarking the market
and attaching equal importance to incentives and restrictions. The appraisal adopts the target appraisal
on key performance indicators. The performance indicators are related not only to the annual operating
goals of the Company but also reflect the orientation of compliance operation as well as the emphasis and
difficulties of relevant work charged by such individual. The performance indicators and target value on
senior management are determined by the Board based on the Company’s annual operation strategies,
the characteristics of the Company and the market environment. The Board determines the level of
annual appraisal of senior management and the distribution of remuneration at the end of the year after
comprehensively considering the Company’s annual operating goals, the completion of relevant work
charged by the senior management member and the special annual compliance appraisal.
The Remuneration and Appraisal Committee proposes the amount of reward and the form of incentives
for senior management based on the completion of the Company’s annual operating goals and the
performance indicators of senior management as well as the Company’s policies on remuneration
distribution and submits them to the Board for study and determination after approving by vote.
XIV. ESTABLISHMENT AND IMPLEMENTATION OF INTERNAL CONTROL
SYSTEM DURING THE REPORTING PERIOD
(I) Statement of the Board
As required by the internal control standard system of the Company, the Company has strengthened
and refined its corporate governance structure, compliance and risk control system and internal control
management system. A corporate governance structure with checks and balances has been formed,
which features the separation among the Shareholders’ general meeting, the Board, the Supervisory
Committee and senior management. Under such structure, all operating management members perform
their functions and duties within respective responsibilities and authorization, ensuring the prudent and
standardized operation of the Company. The Company convenes and holds shareholders’ general
meetings in strict accordance with the Articles of Association, the Rules of Procedures for General Meetings
and other relevant provisions to strictly perform its obligations of information disclosure, protect the right
to know of all shareholders, and thus to ensure the standard and transparent operation of Shareholders’
general meetings. Meanwhile, the Company also strictly regulated its relationships with shareholders, de
facto controllers and related parties to ensure its operational independence.
The objective of internal control of the Company is to reasonably ensure the legality and compliance of
the operation and management, the security of the assets, and the truthfulness and completeness of the
financial report and its relevant information, to improve operating efficiency and effectiveness, and to
promote the accomplishment of the development strategy. Due to the inherent limitations of internal control
and the fact that it is designed to manage rather than eliminate the risk of failure to achieve business
objectives, only reasonable assurance can be provided for the achievement of the above objectives. In
addition, internal control may become inappropriate or the level of compliance with control policies and
procedures may become lower due to the changes of situation, so it subjects to certain risks to speculate
the effectiveness of internal control in the future based on the results of internal control evaluation.
(II) Structure of the internal control system
The Board of Directors has set up special committees such as the Compliance and Risk Management
Committee, the Audit Committee and the Development Strategy Committee to comprehensively monitor
the effective implementation of internal control and self-evaluation of internal control. The Company
HUATAI SECURITIES
172
established internal control construction and a continuous optimization leading group to comprehensively
lead internal control standardized project construction and continuously promote the improvement of the
internal control system. The Company designates Risk Management Department, Planning and Finance
Department, Inspection Department, Legal Compliance Department, etc. as internal control management
departments and all departments as internal control implementation departments to fully cooperate
with the improvement and self-assessment of the internal control system, actively rectify defects in
internal control and give feedback on rectification results as required. The Inspection Department shall be
responsible for conducting internal control evaluation independently and implementing internal audit and
assessment independently on the Company’s internal control measures annually.
(III) Construction and improvement of the internal control system
The Company strictly follows the Company Law of the PRC, Securities Law of the PRC, Guidelines for Internal
Control of Securities Firms, Regulation on Supervision and Administration of Securities Firms, Basic Internal
Control Norms for Enterprises, Implementation Guidelines for Enterprise Internal Control and other laws
and regulations, and improves the corporate governance structure, compliance risk control system and
internal control management system. The Company practices internal control management methods,
constantly enhances its ability to restrict itself and effectively prevents and resolves various risks so as to
ensure the continuous, stable and rapid development of various businesses thereof. The Company makes
clear the internal control organizational structure and division of responsibilities and sets up internal control
construction and a continuous optimization leading group to supervise and promote the internal control
construction of the Company. The Company’s whole businesses, departments, branches and all staff are
involved in internal control, throughout each link from decision-making, implementation, supervision to
feedback. The Company formulated relevant systems in a timely manner based on business development,
and carried out a review and update on relevant management systems for authorization management,
external donations, investors interests protection and self-evaluation on money-laundering risks, and online
account opening, stock option brokerage business, fund service business, public fund classification business
and other relevant business management systems, so as to ensure that the system and procedures
comply with the principles of comprehensiveness, prudence, effectiveness, timeliness and the like, so as to
avoid blank or loopholes in the system and procedures. Starting from prudent operation and identification,
prevention and resolution of risks, the Company established risk matrixes for all businesses and develops
clear control measures to check the effectiveness of control measures with regular assessment.
(IV) Operation of the internal control system
With a focus on the regulatory requirements, development strategies and operation objectives,
the Company continued to deepen the operation of the internal control system and promoted the
comprehensive digital transformation to build its core competitiveness of platform-based, systematic, and
digitized operations. The Company regularly or irregularly carried out a review and update of the system
based on business development, to ensure that the system and procedures comply with the principles of
comprehensiveness, prudence, effectiveness, timeliness and the like, so as to avoid blank or loopholes in the
system and procedures. The Company strengthened its risk review, assessment, management and control
in key businesses and fields to guarantee the risks are measurable, controllable and bearable. It deepened
the establishment of the business continuity management mechanism and improved the systems of
emergency proposals; and actively conducted communications and trainings to strengthen the internal
control culture publicity. Starting from prudent operation and identification, prevention and resolution of
risks, the Company established a multi-level internal control evaluation mechanism, including regular and
irregular self-assessment on the effectiveness of internal control, the evaluation on the effectiveness of
internal control by the internal audit departments and the independent evaluation by the external auditors
to consistently deepen the analysis on high residual risk points and control defects and the rectification and
tracking on internal control defects and improve the effectiveness of the design and effectiveness of control
measure.
The business management departments supervise the development of various businesses from the
perspective of operation management and compliance management. The Compliance and Legal
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Department, the Risk Management Department and the Inspection Department work together from different
perspectives to conduct regular and irregular inspections, evaluations and reports on the establishment
and implementation of the internal control system of each business and management department of the
Company. The management of the Company attaches great importance to the reports and suggestions
from the internal control functions and actively takes measures to rectify the problems found, so as to avoid
the occurrence of business risks and errors to the greatest extent, and enhance the effectiveness of internal
control management.
(V) Basis for the assessment of internal control
The Company organizes to conduct internal control assessment according to the corporate internal control
standard system and the Guidelines for Internal Control of Securities Firms (
《證券公司內部控制指引》
) and
Rules for the Preparation and Reporting of Information Disclosure by Listed Issuers of Securities No.21 –
General Provisions on the Annual Internal Control Assessment Report (
《公開發行證券的公司信息披露編報規則第
21
號－年度內部控制評價報告的一般規定》
) issued by the CSRC, the Guidelines of the Shanghai Stock Exchange
for Internal Control of Listed Companies (
《上海證券交易所上市公司內部控制指引》
) issued by the Shanghai
Stock Exchange and other relevant laws, regulations and regulatory rules.
(VI) Internal control defect and its identification
According to the identification requirements for major defects, important defects and general defects as
stipulated by the internal control system of enterprises, the Board of the Company, in consideration of such
factors as the scale of the Company, industrial characteristics, risk appetite and risk tolerance, distinguished
financial report internal control from non-financial report internal control and determined the internal
control defects applicable to the Company and its specific identification standards, which were consistent
with those of the previous years.
A material defect refers to a combination of one or more controlling defects that could cause the enterprise
to deviate significantly from its control objectives; a significant defect refers to a combination of one or
more controlling defects that is less severe and has less economic consequences than a material defect,
but may still cause the enterprise to deviate from its control objectives; general defects refer to defects
other than material defects and significant defects.
(VII) The Company’s internal control effectiveness assessment
According to the Basic Norms of Internal Control and its provisions in its supporting guidelines and
other regulatory requirements on internal control as well as the Company’s internal control system and
assessment methods, we have assessed the Company’s internal control effectiveness on December 31,
2021 (base date of internal control assessment report) based on the daily supervision and specialized
supervision of internal control, and has issued the Annual Internal Control Evaluation Report for 2021.
The Company conducts reviews on the effectiveness of its risk management and internal supervision
system once a year. The main businesses and matters included in the evaluation scope of the Company’s
internal control include: internal environment, risk assessment, control activities, information and
communication, internal supervision, as well as incompatible position separation control, authorization and
approval control, accounting system control, property protection control, budget control, operation analysis
control and performance appraisal control involved in the control activities. High risk areas we focused
on include: current business and basic function management, namely FICC business, financial innovation
business, securities investment business, margin financing and securities lending business, research and
consulting business, network finance business, wealth management business, financial products business,
asset custody business, bond financing business, investment banking business, futures business, asset
management business, information technology, operation management, financial management, related-
party transactions, subsidiary management and other fields, as well as the liquidity risk, market risk, credit
risk, operational risk, reputation risk, information technology risk, compliance risk, legal risk and integrity risk
that have significant impact on the Company’s operation and management.
HUATAI SECURITIES
174
According to the identification results of major defects in financial report internal control, on the base date
of internal control assessment report, the Company does not have major defects in financial report internal
control.
The Board of Directors thinks that the Company has maintained effective financial report internal control
in all major aspects according to the enterprise internal control standardized system and requirements in
relevant regulations.
According to the identification results of major defects in non-financial report internal control, on the base
date of internal control assessment report, the Company does not have major defects in non-financial
report internal control.
(VIII) Work plan for internal control in 2022
In 2022, the Company will continuously promote internal control self-assessment and optimize work scheme
and supervise the implementation. The key contents include: continuously implementing and deepening
internal control management with focus on deepening special review and enhancing the efficiency of
management and control tools; further improving the level of refinement of internal control management
with data and scenarios as drivers; improving the process control and the ability to identify reverse risks
and enhancing the insurmountability of management and control; boosting the automation of control
measures and the identification and evaluation of risk points and advancing digital business process and
operation management; and deepening the establishment of internal control and management culture
and intensifying training and publicity.
XV. MANAGEMENT AND CONTROL OF SUBSIDIARIES DURING THE
REPORTING PERIOD
XVI. INFORMATION ABOUT THE INTERNAL CONTROL AUDITING REPORT
The Company incorporated all subsidiaries into the comprehensive risk management system. It continued
to deepen and improve the Group’s comprehensive risk management system with high engagement,
full coverage and deep penetration as the core idea and advanced all risk management work with the
philosophy of collectivization, specialization and platformization. It established the concentrated and unified
management thinking on professional risk lines of all subsidiaries and all subsidiaries were covered by all
professional risk management requirements at the Group level.
During the Reporting Period, the Company optimized the overall risk management framework of subsidiaries,
enhanced the refined management and control ability and amended risk management systems and
differentiated management rules of subsidiaries. In the principle of hierarchical authorization, the Company
carried out independent risk assessment and approval on significant risk projects or key matters of
subsidiaries and conducted penetration management and control on subsidiaries’ business risks. It
continuously integrated the Group’s risk data and information to constantly improve the data accuracy and
timeliness and enhance the risk monitoring and warning ability at the Group level.
When disclosing the annual report for 2021, the Company will also disclose the 2021 Annual Internal Control
Evaluation Report of Huatai Securities Co., Ltd. and the Internal Control Audit Report of Huatai Securities Co.,
Ltd. at the same time, which will be published on the website of the Shanghai Stock Exchange (www.sse.com.
cn), the HKEXnews website of the HKEX (www.hkexnews.hk) and the Company’s official website (www.htsc.
com.cn) on March 31, 2022.
Whether to disclose the internal control audit report: Yes
Type of opinion on the audit report on internal control: Standard unqualified opinion
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XVII. RECTIFICATION OF PROBLEMS DISCOVERED IN SPECIAL SELF-
INSPECTION ACTIONS ON LISTED COMPANIES GOVERNANCE
XVIII. BUILDING OF THE COMPLIANCE MANAGEMENT SYSTEM OF
THE COMPANY AND THE INSPECTION AND AUDIT FINISHED BY
THE COMPLIANCE AND INSPECTING DEPARTMENT DURING THE
REPORTING PERIOD
Under the requirements of the Announcement Regarding Implementation of Special Actions on Listed
Companies Governance issued by the CSRC, the Company conducted careful review and searching based
on the list of items for special self-inspection on listed companies governance and discovered no problems
to be rectified.
The Company always places emphasis on the corporate culture of operation in compliance with laws and
regulations, and carries out strict management and prudent and standard operation. During the Reporting
Period, in accordance with the relevant laws and regulations and the regulatory requirements, the Company
further established a sound compliance management system, improved the organizational structure for
compliance management, and continued to strengthen the compliance management of the Company to
keep continuous and standardized development of the Company’s various businesses.
(I) Organizational Structure for Compliance Management
Since its establishment, the Company has been adjusting and improving the organizational structure for
compliance management and the relevant systems based on the changes of the market environment
and regulatory requirements and the development needs of business. According to the Measures for
the Compliance Management of Securities Companies and Securities Investment Fund Management
Companies (hereinafter referred to as the “Measures”) issued by the CSRC in 2017, the Company further
clarified the compliance duties of the Board of Directors, Supervisory Committee, senior management, chief
compliance officer, and responsible persons of all departments, all branches and subsidiaries at all levels
(hereinafter referred to collectively as “all subordinate units”) in the Articles of Association and the basic
compliance management system. The current compliance organizational system comprehensively reflects
the basic requirements of the Measures for “full compliance” and “starting compliance management from
the senior management”, and a resultant force situation of sound compliance management organizational
structure, clear positioning of responsibilities at all levels and full compliance is basically created.
The Board of Directors is the supreme decision-making body for compliance management of the Company,
which bears ultimate responsibility for the effectiveness of compliance management, decides on the
compliance management objectives and is responsible for the effectiveness of compliance management
of the Company; the Compliance and Risk Management Committee under the Board of Directors is
responsible for overseeing the overall risk management of the Company and controlling the risks within
a reasonable range to ensure that the internal management system, business rules, significant decisions
and main business activities of the Company are in compliance with laws and regulations and the risks
are controllable and bearable; the Supervisory Committee is responsible for supervising the compliance
management and the performance of compliance management duties by Directors and senior
management; the senior management assumes the major responsibilities for compliance management,
implements the compliance management objectives of the Company and is responsible for the whole
company’s compliance management; responsible persons of all subordinate units are responsible for their
units’ operations in accordance with laws and regulations; all the staff of the Company are responsible for
the compliance of the operational matters and professional conducts within the range of their operational
activities.
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The chief compliance officer is in charge of the compliance of the Company, conducts audit, inspection
and supervision on the compliance of the management and professional conducts of the Company and
its staff, and helps the operation management effectively identify and manage compliance risks. The
chief compliance officer is a member of the Company’s senior management, and is appointed by the
Board of Directors. The chief compliance officer does not hold any concurrent posts or take charge of any
departments that conflict with his/her compliance management duties.
The Company has established a Legal Compliance Department to assist the chief compliance officer in
performing specific compliance management duties, mainly including: establishment of the compliance
management system of the Company; compliance training, inspection and guidance; assessment
and unified disposal of compliance risks; compliance review and compliance reports; cooperation with
external compliance supervision and management institutions; anti-money laundering and Chinese Wall;
establishment of the legal system of the Company; review of legal documents; handling of legal affairs;
assessment of and consultation on legal risks.
All departments and branches of the Company have their own compliance officers. A compliance officer
is mainly responsible for the compliance management work of the unit he/she belongs to, performing
such duties as carrying out timely and effective supervision, inspection, assessment and reporting on
the implementation of compliance policies and procedures by such unit and its staff, and is responsible
for the unit’s communication and exchange of information with the Legal Compliance Department and
other compliance management work. During the Reporting Period, the Company further optimized the
compliance management mode of its branches, deepened the vertical management of the branches’
compliance management teams, strengthened the compliance risk management work of the branches,
ensured the branches’ compliance teams to perform their duties independently, and strived to prevent
compliance risks of front-line businesses from the source.
The Company established the management measures for compliance of subsidiaries, which made
detailed arrangements for basic principles, organizational structure and working mechanism of compliance
management of the subsidiaries, and established a sound compliance management system appropriate
to the group strategy on the basis of ensuring the independence of the subsidiaries’ legal representatives.
Meanwhile, the Company established a special compliance management information reporting
mechanism, and all subsidiaries shall report on the operation of compliance management quarterly and
report on any major risk or abnormal situation timely after the event so that the Company can grasp
the compliance risk management and control of its subsidiaries timely; the Company established a
mechanism for regular meetings between compliance chiefs of the parent company and subsidiaries
to call together compliance chiefs of the subsidiaries to hold regular meetings quarterly and unblock the
communication mechanism between the Group’s compliance chiefs and the Compliance Department, and
built an important platform of notifying the Group’s compliance risk events, sharing supervision information,
exchanging key and difficult points of the compliance management work and forming a resultant force
for compliance management; and the Company improved the compliance conversation system and
mechanism to strengthen the audit and filing of important compliance systems of subsidiaries, and carried
out special compliance inspection on relevant subsidiaries to implement the compliance management
mechanism of subsidiaries.
(II) Compliance System Building of the Company
The Company continued to improve the compliance management system and formed various compliance
management systems, including the Compliance Management System of Huatai Securities Co., Ltd. (2017
Revision), Measures for the Compliance Management of Subsidiaries (2020 Revision), Daily Working Measures
for Compliance Management (2020 Revision), Measures for Management of Compliance Management
Personnel (2020 Revision) and Measures for the Implementation of Compliance Accountability.
During the Reporting Period, the Company formulated the Administrative Measures for Preventing and
Combating Illegal Fundraising and Illegal Securities Activities, and amended certain internal control systems
such as the Management System for Abnormal Securities Transaction Behaviors of Customers of Stock
Exchanges and the Administrative Measures for Self-evaluation on Money-laundering Risks, which further
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optimized the construction of compliance system.
(III) Implementation of the Compliance Management Mechanism
Since the full implementation of the compliance management system, the Company saw continuous
improvement of its compliance management work, and continued to benefit from observance with the
philosophy of “Creating Value through Compliance Management” and saw significant improvement in the
standardization of operations. During the Reporting Period, the Company deepened the effective integration
of business and compliance, and focused on key business links to build an embedded compliance
management and control mechanism with penetration and coverage. The Compliance Department
provided all branches with comprehensive compliance consultation, put forward recommendations on
common issues in time and monitored and gave guidance over the rectification and improvement of
relevant systems and procedures by relevant departments; carried out compliance review comprehensively,
clarified the front-line compliance review responsibilities.
(IV) Information about Inspection Carried out by the Compliance Department
during the Reporting Period
During the Reporting Period, the Company’s Compliance Department carried out special on-site inspections
of the offices of some branches, completed special anti-money laundering inspections of relevant business
lines, carried out special inspections of implementation of the study of new regulations for business
and special inspections of OTC derivatives compliance, and continuously followed up the progress of
rectification.
(V) Progress of Audit Work of the Audit Department during the Reporting Period
During the Reporting Period, the Company’s Audit Department closely focused on the strategic
transformation of digital transformation, deepened the concept of digital operation, insisted on enhancing
audit with technology and actively explored audit innovation. It vigorously empowered audit with digital
staff to improve the audit efficiency. Under the new situation with the comprehensive implementation of
the Audit Law and the full display of the important role of audit supervision, the Company firmly focused on
“development, reform, rule of law and anti-corruption” in deploying audit work and practically implemented
risk management work in the principle of accurate thinking. The Company effectively carried out inspections
and evaluation on the establishment and implementation of the internal control mechanisms of each
department and subsidiary, and each branch and securities business department of the Company, the
legality and compliance of business operation, operating guarantee, client services, anti-money laundering
and innovative business, as well as the accuracy of financial revenue and expenditure and accounting
calculation, evaluated the risks on business and operation and revealed the weaknesses and defects
in operation management. It better completed the working tasks for the whole year and made its own
contributions to the Company’s innovative development.
Based on the annual operational targets and regulatory requirements, the Company’s Audit Department
overcame the regional outbreak and reoccurrence of the pandemic during the Reporting Period, adjusted
the manners of working and arranged various projects to adopt new types of audit such as “remote + on-
site” and “video + materials” through the appropriate allocation of audit resources and the optimization of
audit means. It connected the units under auditing to conduct remote communications on uncertain points
through online video meetings and Link working groups and achieved the homogeneous management of
off-site data analysis and on-site audit, well completing the tasks of audit projects. During the Reporting
Period, it completed 172 audit items in total, including regular auditing for 17 business and management
departments such as the research institute, securities investment department, fixed income department,
debt financing department, sales and trading department, network finance department, securities margin
trading department, financial innovation department, capital management department, central trading
room, wealth management department, financial product department, asset custody department,
operation center, information technology department, risk management department and offices; regular
auditing and auditing for departure of chairmen, presidents and board secretaries for 8 subsidiaries
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such as Huatai Futures, Huatai United Securities, Huatai Asset Management, Huatai Innovative Investment,
Huatai Purple Gold Investment, Huatai International, Jiangsu Equity Exchange and Huatai United Securities;
auditing for the departure and mandatory leave of general managers of 18 branches in Guangdong, Hubei,
Yunnan, Shanghai, Shandong, Yangzhou, Sichuan, Zhenjiang, Zhejiang, Nanjing, Yancheng, Shenzhen, Hunan,
Nantong, Taizhou, Changzhou, Hubei and Beijing; auditing for the departure and mandatory leave of general
managers of 116 securities branches in Changjiang Road, Nanjing, Wuluo Road, Wuhan, Renmin Middle Road,
Nantong, Yushi Street, Nanjing, Wuding Road, Shanghai, Jianguo West Road, Xuzhou, Jiefang East Road,
Hangzhou, Xiahe Road, Xiamen, Yaogang Road, Nantong, Qiushi Road, Hangzhou, Shennan Avenue, Shenzhen
and Renmin Road, Suzhou; 13 special audits including assessment report on the effectiveness of corporate
compliance management, corporate internal control evaluation, effectiveness evaluation of the dynamic
monitoring system for corporate risk control indicators, evaluation of corporate anti-money laundering,
specific compliance of branches in Xiamen, specific securities investment and funds custody and service
business, specific funds sales business, specific related-party transactions, special IT auditing and IT risk
assessment, special comprehensive auditing on information technology management, special report
on the application of smart business travels, special report on project construction and rectification and
tracking of problems discovered in audit items. Audit reports have been issued for 166 audit items; 555 audit
opinions and suggestions were put forward and 493 problems were rectified, with a rectification completion
rate of 88.83%; 562 problems discovered in the previous auditing were tracked and 520 problems were
rectified, with a rectification completion rate of 92.53%; according to the Implementing Rules for Penalties
of Illegal Behaviors Discovered in Audit of Huatai Securities Co., Ltd., suggestions were made on penalties
for 109 person-times in 109 units and the penalty amounted to RMB165,500. All units under auditing actively
coordinated in the auditing process and the audit opinions and suggestions were recognized by units under
auditing and their responsible persons.
During the Reporting Period, the Audit Department of the Company firmly focused on the digital
transformation strategy and actively explored innovation in audit means under the environment of
informatization. It sought to expand means for the implementation and application of big data audit,
enhanced the digital thinking, promoted the concept of digital audit and continuously upgraded and built
the audit management platform with the combination of data application and process management. It
advanced the collection, accumulation and governance of data required in auditing, docked the middle
office for data and certain data of the brokerage business, compliance, risk control and financial systems,
established the audit database and improved the quality of data application through the continuous
improvement of data varieties. Meanwhile, it focused on inspection points with the orientation of risks and
integrated digitalization into routine audit. The contents of auditing covered business operation activities,
financial accounting and management, the establishment and implementation of internal control, the
completion of operating targets, the implementation of responsibilities on improving Party’s work style and
building clean government and abiding by regulations on integrity, the rectification of problems discovered
in previous audits as well as other matters, achieving the full coverage of audit targets and contents.
In order to further expand the breadth and depth of audit supervision, the Audit Department of the Company
established an audit mechanism with “one punishment, two steps and three feedbacks” and strived to
achieve the audit effect of identifying problems, promoting rectification, fixing up existing issues and
preventing future problems. It advanced the long-term responsibility mechanism on the implementation
of the rectification of problems discovered in audits, arranged special staff to create the list of problems
and rectification accounts based on each unit and item and “eliminate the number based on accounts”. It
irregularly “reviewed” problems discovered in the current and previous periods and confirmed with the units
responsible for rectification one by one to follow the latest rectification progress and results. It gradually
cleared historical issues to be rectified to ensure that no issues are left and all problems are rectified
earnestly and seriously. It implemented and supervised the closed-loop management of rectification and
increased punishment on a few repeated problems to promote audit rectification with accountability. The
Audit Department continued to implement the regular reporting mechanism on problems discovered in
audit and publicized typical, universal and tendentious problems discovered in audit through the publication
of the Brief Report on Audit Work on a quarterly basis to ensure that once the key link is grasped, everything
falls into place. It reminded relevant units to carry out self-inspections and self-rectifications and draw
inferences about other cases from one instance to display the effect of systems. It reviewed and analyzed
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the problems discovered in audits during the year and their rectification as well as the implementation of
the penalties one by one and summarized them to formulate a special annual report. It achieved the results
as anticipated in rectifying errors, improving defects, standardizing management and improving efficiency
and effect through the rectification and tracking of audit problems in previous years.
Adhering to the philosophy of strengthening audit with technology, the Audit Department of the Company
optimized audit means, improved the audit coverage and strengthened audit supervision. It further
refined all audit rules and systems, firmly focused on solving prominent problems closely based on its own
conditions and advanced the theme of innovative development. It vigorously promoted digital construction,
advanced audit management, intensified audit efforts in key businesses and strived to provide better
support to operation and management.
The Party branch of the Audit Department of the Company deepened the prevention and control of integrity
risk and integrated Party building and integrity with audit. It displayed the role of Party members as pioneers
and models, coordinated the application of various audit methodologies and procedures and carried out
inspections on integrity risk points, effectively preventing risks on ethics, laws and corruption.
XIX. OTHER INFORMATION
(I) Company Secretary
Mr. Zhang Hui is one of the joint company secretaries of the Company, while Ms. Kwong Yin Ping Yvonne,
manager of SWCS Corporate Services Group (Hong Kong) Limited, is the joint company secretary fulfilling
the relevant qualification requirements of the Hong Kong Listing Rules. The company secretary is mainly
responsible for facilitating the operation of the Board, ensuring the effective communication between the
members of the Board and the observation of the policies and procedures of the Board, and ensuring the
compliance with Hong Kong Listing Rules and other regulations by the Company. Any Director can discuss
with, seek advice from and obtain information from the company secretary. The primary contact person for
Ms. Kwong Yin Ping Yvonne at the Company is Mr. Zhang Hui.
Each of Mr. Zhang Hui and Ms. Kwong Yin Ping Yvonne has complied with the requirements of Rule 3.29 of
the Hong Kong Listing Rules by receiving relevant professional training for no less than 15 hours during the
Reporting Period.
(II) Responsibilities of the Directors and Auditors in respect of the Accounts
The following statement of responsibilities of Directors regarding the financial statements shall be read in
conjunction with the responsibility statement of the certified public accountants included in the audit report
of this report. Each responsibility statement shall be understood separately.
The Board of Directors confirmed that it took responsibility for the preparation of the annual report of the
Group for the year ended December 31, 2021.
The Board of Directors is responsible for presenting a clear and well-defined assessment of the annual and
interim reports, stock price sensitive information, and other matters that need to be disclosed according to
the Hong Kong Listing Rules and other regulatory provisions. The management has provided relevant and
necessary explanation and information for the Board of Directors so that the Board of Directors could make
informed assessment on the financial data and position of the Group for examination and approval at the
Board meetings.
To the knowledge of all Directors, the Company does not face any events or situations of significant
uncertainty likely to give rise to the significant doubt of the Company’s capability of sustainable operations.
In addition, the Company has arranged appropriate insurance cover for the legal actions and liabilities
which the Directors, Supervisors and senior management may be exposed to.
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For the purposes of the United Kingdom’s Financial Conduct Authority’s Transparency Rule 4.1.12(3), each
Director of the Company (whose names and functions are listed on page 120 of this report), to the best of
his or her knowledge, confirms the following two points:
(a) the financial statements, prepared in accordance with the applicable set of accounting standards,
give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the
undertakings included in the consolidation taken as a whole; and
(b) the management report (being this annual report, excluding the financial statements referred to above
(on pages 247-389 of this report) and the independent auditor’s report thereon (on pages 238-246 of this
report)) includes a fair review of the development and performance of the business and the position of the
Group and the undertakings included in the consolidation taken as a whole, together with a description of
the principal risks and uncertainties that the Group faces.
(III) Performance Assessment Results for Directors and Supervisors
During the Reporting Period, the Directors and Supervisors of the Company had abided by the relevant
provisions of laws, administrative laws and regulations as well as the Articles of Association, and performed
their duties and obligations honestly and diligently.
All the Directors of the Company have performed their statutory duties honestly, faithfully and diligently in
compliance with laws. They have attended Board meetings and various meetings of special committees in
accordance with relevant provisions, considered each proposal seriously, offered advice and suggestions
on significant strategic decisions and plans, important investment and financing projects, business
innovations, related-party transactions, compliance management and internal control, system construction,
appointment of senior management, performance assessment, enterprise cultural construction and social
responsibilities of the Company, and acted as professional gatekeepers on such issues, which ensured
those material decisions to be scientific and standardized as well as the sustainable and innovative
development of the Company, and preserved the interests of the shareholders practically.
All the Supervisors of the Company have performed their statutory duties honestly, faithfully and diligently
in compliance with laws. They have attended the meetings of the Supervisory Committee in accordance
with relevant provisions, attended the Board meetings, considered each proposal carefully, supervised
and inspected the legality of operation, material decisions and important business activities as well as
the financial position of the Company, actively protected the legal interests of the Company and its
shareholders, promoted the legal operation and standardized management, and ensured the sound
development of the Company.
For details on the performance of duties of the Company’s Directors and Supervisors, please refer to the
“Performance of Duties of Directors” and “Performance of Duties of Supervisors” under this section in this
report.
(IV) Communication with Shareholders
The shareholders’ general meeting is the organ of the highest authority of the Company, and the
shareholders exercise their rights through the shareholders’ general meeting. The Company convenes and
holds shareholders’ general meetings in strict accordance with the relevant provisions of the Articles of
Association and the Rules of Procedures for General Meetings to ensure the equal status of all shareholders,
in particular the minority shareholders, and enable them to exercise their rights completely.
The Company pays great attention to the shareholders’ opinions and advice, actively and regularly carries
out various investor relations activities to keep communication with shareholders and meet their reasonable
needs timely. The Company has formulated a series of relatively perfect rules and regulations such as the
Administrative System Regarding Investor Relationship, to manage investor relationship in accordance
with the standards, systems and procedures. Meanwhile, the Company has formed good interaction and
communication with the investors by actively using various channels such as existing investor service hotlines, a
special column for investor relations at the Company’s website and reception of on-site researchers.
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The Board of Directors of the Company is willing to listen to shareholders’ advice and encourages
shareholders to attend the general meetings to ask the Board of Directors or the management directly
about any doubts they may hold. Shareholders may convene extraordinary general meetings or submit
interim proposals to general meetings according to the procedures set out in Article 84 and Article 89 of the
Articles of Association, which were published on the website of the Shanghai Stock Exchange, the HKEXnews
website of the HKEX and the Company’s official website. The Company will arrange for the Board of Directors
to answer the shareholders’ questions at its annual general meeting for 2021.
(V) Investor Relations
The investor relations management is one of the most important tasks on the normative development and
legitimate operation of the Company and is highly valued by the Board of the Company. The Company
planned, arranged and organized various activities to manage investor relations with a strong sense of
responsibility, including coordinating on-site interviews to the Company, and keeping in contact with
regulatory authorities, investors, intermediary agencies and news media and so on.
During the Reporting Period, the Company timely updated information on the “Investor Relations” column on
the Company’s website, and answered inquiries from investors of the interactive E-platform on the website
of the Shanghai Stock Exchange. The Company has received 16 times of onsite investigations and surveys or
telephone interviews from approximately 52 researchers and investors such as securities companies and
funds companies at home and abroad in the whole year. The Company also carried out daily consultation
work seriously for investors and answered their questions in detail. Meanwhile, to assist the issuance of the
periodic reports, the Company held 2 presentations for operating performance and 2 online briefings on
performance, and proactively attended strategy seminars and investment forums held by domestic or
foreign securities institutions. It attended 7 strategy seminars and investment forums and accepted the
investigations of approximately 90 investors and researchers during the Reporting Period and maintained
full communications with investors and researchers on issues such as the development trend of the
industry, operational results of the Company as well as its business development strategy, which effectively
promoted investors’ and researchers’ understanding of the business condition and result performance of
the Company, completely marketed the development advantages of the Company, and correctly guided
market expectations. The Company persisted in inducing and analyzing various questions proposed by
institutional investors and researchers to improve the professionalism, normalization and the quality of
investor relations management of the Company.
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No.
Date of
reception
Place of
reception
Way of
reception Guests
Major topics
discussed and
information
provided
1
January
20, 2021
Hong Kong Office
Telephone
interview
Fidelity Funds (1 person-time)
Business
development,
innovative
business
development
and long-term
development
strategy of the
Company, etc.
2
January
20, 2021
Hong Kong Office
Telephone
interview
M&G Asset Management (1 person-
time)
3
January
27, 2021
Hong Kong Office
Telephone
interview
CLSA (1 person-time)
4
March 30,
2021
The headquarters
of the Company
Telephone
interview
Schroders Group (4 person-times)
5
March 30,
2021
The headquarters
of the Company
On-site
interview
Rosefinch Fund, Guotai Asset
Management, Harvest Fund, etc.
(13 person-times)
6
April 8,
2021
Shanghai Office
On-site
interview
Rosefinch Fund (2 person-times)
7
April 12,
2021
Shanghai Office
On-site
interview
APS Asset Management (2 person-
times)
8
April 12,
2021
Shanghai Office
On-site
interview
CPIC AMC (1 person-time)
9
May 12,
2021
Shenzhen Office
Telephone
interview
Fidelity Funds (1 person-time)
10
May 13,
2021
Shenzhen Office
On-site
interview
Dacheng Fund (1 person-time)
11
May 21,
2021
The headquarters
of the Company
On-site
interview
China Merchants Fund (1 person-
time)
12
May 27,
2021
Hong Kong Office
Telephone
interview
HSBC (3 person-times)
13
June 3,
2021
Hong Kong Office
Telephone
interview
Soochow Securities, Ping An Securities
(2 person-times)
14
June 23,
2021
Hong Kong Office
Telephone
interview
Prime Capital, WT Capital, etc.
(14 person-times)
15
August 10,
2021
Hong Kong Office
Telephone
interview
Fidelity Funds (4 person-times)
16
December
7, 2021
Hong Kong Office
Telephone
interview
TengYue Partners (1 person-time)
The Company’s reception of investigations and surveys, communications, and interviews in the full year of
2021:
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No.
Date of
reception Meeting name
Way of
reception Guests
Major topics
discussed and
information
provided
1
January 21,
2021
UBS GCC 2021
Telephone
interview
UBS Wealth Management, APS
Asset Management, Nomura Asset
Management, etc. (18 person-times)
Business
highlights,
operations
and financial
performance,
and long-
term strategic
planning of the
Company
2 June 1, 2021
CITIC
Securities 2021
Capital Market
Forum
On-site
interview
Dacheng Fund, Harvest Fund, Springs
Capital, etc. (28 person-times)
3
November
3, 2021
Citicorp 2021
China Investor
Summit
Telephone
interview
Millennium, CICC AM, Citi (5 person-
times)
4
November
9, 2021
Merrill Lynch
2021 China
Investor
Summit
Telephone
interview
Balyasny, Rays, Well Fargo (10 person-
times)
5
November
10, 2021
CITIC
Securities
2022 Annual
Capital Market
Conference
Telephone
interview
CITIC AMC, China Merchants Securities,
Changjiang Pension, Taikang AMC (11
person-times)
6
November
18, 2021
HTSC 2022
Investment
Summit
Telephone
interview
Taikang AMC, ICBCCS, Springs Capital,
etc. (14 person-times)
7
November
19, 2021
Morgan
Stanley 2021
Asia-Pacific
Investor
Summit
Telephone
interview
UG, GQG, TX Capital, WT Capital
(4 person-times)
The Company’s participation in strategy seminars and investment forums held by domestic or overseas
securities institutions in the full year of 2021 is as follows:
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(VI) Independence of the Auditor
According to the relevant provisions in Rule 19A.31 of the Hong Kong Listing Rules, annual accounts should
be audited by a prestigious certified public accountant (whether it is an individual, a firm or a company),
who (whether it is an individual, a firm or a company) also should be independent of the Chinese issuer
to the extent that its independent procedures should be substantially the same as those specified in
the statements on independence issued in the Companies Ordinance or by the International Federation
of Accountants. According to the relevant provisions in Rule C.3.3 (renumbered as Rule D.3.3 with effect
from January 1, 2022) of the Corporate Governance Code and Corporate Governance Report as set
out in Appendix 14 to the Hong Kong Listing Rules, the Audit Committee should review and monitor the
independence and objectiveness of external auditors as well as the validity of the auditing process in
accordance with applicable standards. During the Reporting Period, the Company continued to engage
KPMG Huazhen LLP as the auditors of A Shares and KPMG as the auditors of H Shares. The Audit Committee
had carried out necessary review and supervision to ensure the independence between the firms and the
Company.
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I. ENVIRONMENTAL INFORMATION
(I) The Company is not in the list of severely polluting units published by the
environmental protection authority
(II) Description of the environmental protection of enterprises excluding attention
units discharging pollutants
1. During the Reporting Period, the Company was not subject to any administrative penalty arising from
environmental issues
2. Other environmental information with reference to disclosures of attention units discharging pollutants
The Company is a financial company, which is not in the list of attention units discharging pollutants
and their major subsidiaries published by the environmental protection authority. The Company entrusts
qualified third-party organizations to conduct inspections for the wastewater, exhaust gases and noises of
the headquarters office every year. All inspections are in line with the national standards.
For possible rainstorms, typhoons and other extreme weather events as a result of climate change, the
Company issues pre-warning alerts and notices to all departments and branches in time and relevant staff
immediately adopt measures on preventing wind and water logging, inspect and clear flood-discharging
facilities and prepare sandbags, raincoats and other emergency equipment. Under extreme weathers,
relevant staff enhance inspections on key areas and parts in preventing wind and water logging and rectify
equipment failure in time.
(III) Relevant information beneficial to protecting ecosystem, preventing pollution
and performing environmental responsibilities
1. The Company actively responds to the Nanjing Municipal Domestic Waste Management Regulations and
sets household waste sorting points on each floor of Huatai Securities Square. It publicizes the concepts and
practice on waste sorting among staff through pasting posters on waste sorting in striking parts of public
places and playing videos on waste sorting repeatedly in elevators to create an atmosphere of “waste
sorting with all participation” and form a habit of actively sorting and consciously putting waste. Office
wastes of the Company are collected and transported by the property management company. Hazardous
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Environment
and Social
Responsibility
HUATAI SECURITIES
wastes such as electronic wastes, light pipes, toner cartridges and ink cartridges are recovered by qualified
entities for further disposal or recycling.
2. According to the Management Measures on Motor Vehicles of the Company, new energy vehicles shall
be given priority when purchasing vehicles for corporate affairs and operation of the Company to practice
low-carbon and environmental operation. The underground garage of Huatai Securities Square is equipped
with charging piles for new energy vehicles and electric motorcycles to encourage employees to practice
green commuting and advocate green and environmental concepts.
3. For the decoration and renovation of business buildings of the Company, it takes measures such
as setting the shortest decoration intervals (decoration and renovation are not allowed for those not
exceeding the shortest decoration intervals except under special circumstances) and improving the quality
of decoration and renovation projects to extend the life of decoration for business buildings, reduce the
frequency of decoration and minimize pollution from decoration and renovation. The Company adopts
new construction materials in decoration and renovation to achieve the integration of environmental
protection and buildings. For curtain walls, interior furnishings and landscapes, it follows green, innovative
and environmental concepts and focuses on the popularization of LED lighting with low energy consumption
in office areas to save lighting power in daily office to the maximum extent. It significantly reduces the
use of paint and other decoration materials and adopts environmental and paint-free materials instead.
Panel furniture is widely adopted for office and it generally eliminates the use of paint furniture. Greater
efforts are made in aerial detection and governance after decoration to improve the air quality in the office
environment so as to create a safe and comfortable office environment for employees.
(IV) Measures adopted for reducing its carbon emission during the Reporting Period
and their effects
1. Green parks
The greening rate of Huatai Securities Square is 27.9%, which is higher than that of general business office
areas. Around the concept of garden-like office, the Company consistently expanded the plantation area
of green plants and focused on reducing carbon emission through creating a multi-level landscape in
addition to developing greening in central area.
Leveraging the solar photovoltaic power generation system, the Company saved 84,199 kWh of electricity
in 2021. Meanwhile, through the sunlight induced lighting device system, the air-conditioning ice storage
system, the floor air supply system, the intelligent lighting control in office areas and other measures, the
Company continuously brought better social benefits to the low carbon economy.
2. Green Office
The Company calls on all employees to integrate the concepts of resources saving and emission reduction
into their work and life and is devoted to minimizing the impact of its own operation on the environment. It
has adopted the following measures to save energy, reduce emission and protect the environment:
(1) Leveraging on the electronic signature platform, the Company continues to promote paperless office
and reduces the use of paper contracts through electronic stamp and electronic signature. The Company
used electronic stamp for over 100,000 times, saving over 3 million sheets of paper.
(2) The Company evaluates the reusability of discarded office devices and encourages reusing of waste
and old materials to reduce unnecessary waste; entrusts a qualified company to recycle and dispose of or
reuse hazardous wastes; requires the property management center to clear and transport office waste to
minimize adverse impacts on environment; discharges wastewater into the municipal sewage pipeline and
transports wastewater to the municipal wastewater treatment plant.
(3) The Company reduces the number of on-site meetings and therefore reduces carbon emissions due
to business travel; prioritizes the purchase of new energy vehicles and encourages green travel to reduce
environmental pollution caused by vehicle exhaust emissions.
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(4) Advocating water saving, the Company uses water-saving sanitary ware to reduce water consumption;
conducts regular maintenance on water equipment to prevent evaporating, emitting, dripping, and leaking;
makes full use of the rainwater recovery system, collects rainwater in the rainy season, and irrigates plants
in the dry season.
3. Green data center
The usable area of the data center of Huatai Securities Square is approximately 3,600 square meters and
was put into production in 2015. With the target of building a green data center from the early construction
to the later operation and maintenance, it has adopted various measures to improve the use efficiency of
energy.
During the construction period, the machine room area adopted the high-efficient cold aisle enclosed
energy-saving technology to improve the heat dissipation efficiency of equipment and enhance the
utilization of cold air. During the nearly six years after being put into production, the data center consistently
reduced energy consumption through technical and management means, such as adding blind plates
to improve the isolation effect of hot and cold aisles; renovating and updating the return louvers of air-
conditioning rooms to reduce resistance in air returning; and conducting fine management on the lighting
system of the machine room.
To further improve the energy efficiency, the operation and maintenance staff carried out comprehensive
analysis on the overall temperature of the data center in 2021. They found that the temperature of
approximately 20% of the cold aisles, which directly face the air supply channels of air conditioners, has
been relatively low for a long time. The return temperature of air-conditioners in the corresponding area
was adjusted 1
℃
higher after various tests and adjustments, accounting for 20% of all air conditioners. The
energy consumption of air conditioners in the data center significantly reduced after the adjustment, having
saved approximately 10,950 kWh of electricity during the year.
II. SOCIAL RESPONSIBILITIES
The Company is a financial company in Shanghai, Hong Kong and London. While disclosing its 2021 Annual
Report, the Company will also disclose the 2021 Corporate Social Responsibility Report of Huatai Securities
Co., Ltd., which will be published on the website of SSE (www.sse.com.cn), the HKEXnews website of HKEX (www.
hkexnews.hk), the website of LSE (www.londonstockexchange.com) and the website of the Company (www.
htsc.com.cn) on March 31, 2022.
In 2021, the Company was granted Grade A
in the ESG rating of Morgan Stanley Capital
International (MSCI), achieving upgrade for
three consecutive years, reaching the highest
level in the domestic securities industry and
surpassing 79% of its peers globally.
the highest level in the domestic
securities industry
A
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1. Social Responsibility Management
Responsibility principles
The Company has always been adhering to its core values of “efficiency, honesty, prudence, and innovation”
and its business philosophy of “centering on customer service, driven by customer demand, and aiming for
customer satisfaction”, integrating ESG standards into the routine businesses of the Company, striving to
create value for customers, shareholders, employees, society and other stakeholders.
The Company always places
its customers at the center and
strives to create value for its
customers, so as to win their
trust with high-quality financial
services.
The Company standardizes its
corporate governance structure
and attaches great importance
to risk management and
compliant operation, aiming to
achieve a stable increase in asset
value and ensure sustainable
returns to its shareholders.
The Company values the
harmonious development
of the financial system and
the society, gives full play to
its professional strengths to
facilitate social advances. It
also actively participates in
social welfare promotion and
green development, fulfilling its
responsibilities as a corporate
citizen.
The Company values people that
are both talented and morally
respectable, for whom it has
built a solid career development
platform and fostered an
optimistic corporate culture, so
as to achieve common growth
with its employees.
Trust of
Customers
Satisfaction of
Shareholders
Pride of
Employees
Respect of
Society
Responsibility
Principles
of Huatai
Securities
Management structure of social responsibility
The Company considers the environmental, social and corporate governance (ESG) as the core driver to
the overall social responsibility performance and a scientific and effective governance structure as the
basis for promoting ESG-related works. Employing ESG management as part of its development strategy,
the Company set up the ESG committee under the senior management to continuously improve its ESG
management structure, established an ESG management mechanism with the linkage between upper and
lower levels and continued to improve the systematicness and effectiveness of its ESG management.
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2. Compliant Operation to Protect the Rights and Interests of All Parties
The Company conscientiously implements the Company Law, the Securities Law, the Standards for the
Governance of Listed Companies (
《上市公司治理準則》
) and other documents and has established a
system of modern enterprise organization and an operation mechanism with the General Meeting, the
Board of Directors, the Supervisory Committee and the senior management. It follows the principles of
independent operation, effective checks and balances, mutual cooperation and coordinated operation of
various governance bodies and continuously improves the operation mechanism of the Meetings and the
management to improve its corporate governance efficiency.
Acted in strict accordance with the Administrative Measures for the Disclosure of Information of Listed
Companies issued by the CSRC and other legal norms and relevant requirements, the Company also
formulated the Management Measures for Information Disclosure, the Internal Reporting System for Material
Information, the System regarding Insider Registration and Management and Confidentiality and other rules
and regulations to provide comprehensive regulation on information disclosure of the Company, so as to
disclose information in a truthful, accurate, complete and timely manner, and ensure that all shareholders
have equal access to relevant information of the Company.
Supervision level
· Fully supervise ESG-related affairs
Management level
· Formulate ESG strategies for the Company
· Evaluate the importance of ESG-
related affairs which will be taken into
consideration in business operations
·Supervise the implementation and
progress of ESG strategies
· Identify ESG-related
opportunities and risks
Execution level
· Actual implementation
of ESG relevant work
Social Responsibility Management Structure
of Huatai Securities
Board of
Directors
Senior
management
ESG Committee
(with the CEO serving as the chairman and the
Secretary to the Board as the deputy-chairman)
ESG Management Team
ESG Management Team
Permanent members
(persons-in-charge of relevant
departments and subsidiaries)
Professional
members
Fixed Income Department
Research Institute
Human Resources Department
Risk Management Department
Strategy and Development Department
Huatai Asset Management
Huatai International
Huatai Purple Gold Investment
Huatai United Securities
Persons-in-charge of other
relevant departments and
subsidiaries and backbone
members with expertise
knowledge and professional
capabilities in ESG
In 2021, the Company was rated Class
AA under Category A according to the
classification of securities companies by
the CSRC in 2021.
AA
In 2021, the Company was rated the
highest-level Class A in the 2020-2021
information disclosure evaluation of
listed companies by the Shanghai Stock
Exchange.
A
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The suppliers of Company mainly include those related to IT hardware, IT software, products for project
construction, comprehensive materials, products for Internet marketing, information products and relevant
services. By strictly following the Tendering and Bidding Law of the People’s Republic of China (
《中華人民共和
國招標投標法》
), the Government Procurement Law of the People’s Republic of China (
《中華人民共和國政府採
購法》
) and other laws and regulations, the Company further optimized management method of suppliers
and created sound supplier cooperation ecosystem.
The Company strictly complies with various requirements on financial marketing publicity and product
advertisement stipulated by the Advertisement Law, the Notice on Further Standardizing Financial Marketing
Publicity, the Measures for Supervision and Administration of the Sales Organizations of Securities Investment
Funds in Public Offering and the Interim Regulations on the Administration of Publicity and Marketing of
Securities Investment Funds in Public Offering and formulated the Administrative Measures for Marketing
Publicity Activities and the Administrative Measures for Proxy Sale of Financial Products, establishing
and improving the internal control systems on the advertising and marketing management of financial
products, continuously strengthening the management of marketing publicity activities and preventing risks
resulting from illicit marketing publicity.
3. Promoting Sustainable Development with Responsible Finance
Strengthening ESG risk management on clients
The clients’ ESG risks include risks on three major aspects, namely environmental, social and corporate
governance. The Company strengthened the clients’ ESG risk management to facilitate the Company
in managing and controlling non-financial risks of clients or projects, prevent the Company from
suffering credit and reputational risks due to clients’ or projects’ ESG issues and promote the sustainable
development of the Company in the long run.
To further improve the clients’ ESG risk management system, the Company amended the Guidelines
for Due Diligence on Clients’ Environmental, Social and Governance (ESG) in 2021, specifying that for
agriculture, biodiversity, energy use, forestry, mining, oil and gas, transport, materials and other industries
with high environmental risks, it shall strengthen due diligence on clients’ ESG risks and industries with high
environmental risks shall meet relevant industrial policies. Meanwhile, the Company released the Reference
Index of Policy Documents on Industries with High Environmental Risks, Biodiversity and Climate Change to
relevant business lines as a supporting instrument in ESG due diligence.
Practicing the concept of responsible investment
With the concept of responsible investment gradually popularized in the market and widely recognized by
domestic and foreign investment institutions, the Company actively responds to domestic and overseas
development trends. The Company amended the Responsible Investment Statement of Huatai Securities
Co., Ltd. In 2021, gradually improved three aspects of responsible investment, namely the organizational
structure and management, research and communication, as well as investment strategy and application,
and strived to prevent investment risks, create economic benefits and enhance social benefits of
investments at the same time.
Under the overall framework of responsible investment, the Company continuously promoted the
application of responsible investment strategies, such as positive screening, negative screening, ESG
integration, sustainability themed investing and impact investment, in the investment business. The
Company actively participated in green bonds investment and impact investment to seek economic
benefits and balance social and environmental benefits.
Huatai Securities Asset Management officially joined the United Nations-supported Principles for
Responsible Investment (UNPRI) in July 2021 and became an asset management subsidiary with the largest
size of asset management among Chinese securities companies in the UNPRI. It will continue the two-way
empowerment on responsible investment from the two ends of investment and financing and build an ESG
investment research framework, carry out the integration of ESG into investment systems and develop ESG-
related investment products under the guidance of the six principles for responsible investment with a view
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to more comprehensively managing investment risks and enhancing sustainable long-term investment
returns by pursuing long-term and value- oriented investments.
Facilitating “carbon neutrality” through financial innovation
The Company has promoted the development of green finance with a high sense of responsibility and
mission, and contributed to the sustainable development of our country’s green finance by supporting the
listing of energy-saving and environmentally friendly companies, the issuance of green bonds, and the
establishment of innovative products and successfully explored in facilitating “carbon peak and carbon
neutrality” through financial innovation. In 2021, Huatai United Securities underwrote 46 green bonds, with a
total financing scale of RMB50,314 million (on a consolidated basis). Huatai Securities Asset Management
issued 6 carbon neutrality and green ABS with an amount of RMB11,010 million.
In April 2021, Huatai United Securities, acting as the joint lead underwriter, facilitated China Energy Investment
Group in issuing the “Tranche 1 Green Corporate Bonds in 2021 of China Energy Investment Group Co., Ltd.
(
國家能源投資集團有限責任公司
) (Special for Carbon Neutrality)”. It is the green bond with the largest scale
among the first batch of green corporate bonds for “carbon neutrality” on the SSE with an issuing scale of
RMB5.0 billion. The proceeds will be mainly used in green projects with carbon emission reduction effects
to facilitate the construction of a clean, low-carbon, safe and efficient energy system and contribute to the
realization of the “carbon peak and carbon neutrality” goals.
The Company also hosted the summit on carbon neutrality and green finance, the finance salon themed
“Green Finance Development in the New Era of Carbon Reduction” and other communication activities on
green finance in 2021, striving to enhance the public awareness on green finance and green development
and jointly promote the healthy development of green finance with all parties.
Serving real economies
The Company actively responds to national strategies and provides science and technology enterprises
with all-round financial services to effectively solve the problems such as huge R&D inputs and poor
profitability and capital liquidity in the preliminary stage of science and technology enterprises and
promote the stable and efficient development of science and technology enterprises. In 2021, Huatai United
Securities successfully promoted 17 companies to log on the STAR Market, ranking the fourth in the number
of enterprises sponsored by us.
The Company is committed to providing professional financial services for high-growth private
enterprises. Focusing on the needs of various stages of enterprise development, Huatai Securities
provides comprehensive full-cycle financial services for the entire industry chain, and grows together
with the enterprises. In 2021, the Company has provided continuous services to companies including
Wingtech Technology, S.F. Holding, CNGR, Trina Solar and HYC, fully supporting the sustainable and healthy
development of private enterprises.
As the only company in China that has both GDR issuer and underwriter experience, the Company is
capable and obliged to conform to the national strategy and made full use of domestic and foreign
resources to provide professional and comprehensive financial services for Chinese companies to “go
global”, and all-round support for building a new pattern of opening capital market to the outside world.
4. Technology Empowering to Provide High-quality Services
Adhering to the concept of “Fintech Empowerment Returning to the Origins of Financial Services for Common
Development of Technology and Business”, the Company continued to promote digital transformation and
improve the efficiency and quality of its own services through fintech empowerment. In 2021, the Company
has continued to deepen the research and application of technologies such as artificial intelligence,
cloud computing and big data and continuously upgraded and updated existing products, making new
breakthroughs in technology innovation, achieving fruitful results and significantly enhancing the platform
capability.
Since the launch of the mobile wealth management terminal “ZhangLe Fortune Path” in 2014, the Company
HUATAI SECURITIES
192
has continued to optimize and upgrade it. In 2021, “ZhangLe Fortune Path” released a total of 28 versions.
With the purposes of developing scenarios and instruments with contents interaction, providing immersive
business handling experience and building featured market transactions and account services, the
Company actively established technology platforms focusing on new trends of wealth management for
customers to comprehensively improve customer services with the improvement of customer interaction
and the expansion of the number of customers and asset size as key points.
5. Support for Employee Development Based on the Concept of “People-Oriented”
The Company strictly observed the Labour Law of the People’ s Republic of China (
《中華人民共和國勞動
法》
), Labour Contract Law of the People’ s Republic of China (
《中華人民共和國勞動合同法》
) and other laws
and regulations, formulated and continuously improved the Employee Management Measures of Huatai
Securities Co., Ltd. and other internal systems to carry out standard management on employment and
dismissal, equal employment, working hours management, rest and holidays and the prevention of child
labour and forced labour.
The Company persisted in the establishment of standard, fair and equal employment and dismissal
procedures, firmly opposed discrimination in employment, equally treated every jobseeker and employee,
and ensured fair employment and occupational development that does not be affected by race, belief, sex,
religion, nationality, ethnic group, age, marital status, disability, social status, etc. In addition, the Company
paid attention to the employment of female candidates and minority ethnic candidates, and provided
equal and fair employment opportunities for female candidates and minority ethnic candidates.
Based on the technology-empowered “two-pronged” strategy and empowering people strategy, the
Company built a talent development system with the quality as an international investment banking
employee should have, customer value-added capabilities and digital transformation capabilities. In 2021,
based on the Measures for Training Management of Huatai Securities Co. Ltd., the Company established
and optimized the talent cultivation system based on the whole life cycle for talent growth and continuously
conducted three series of training programs, namely the Huatai “STAR”, the “HIPO” for core employees and
the “BAL”, fully meeting employees’ development demands in different stages of career.
As of the end of
2021
the “ZhangLe Fortune Path” APP
had been cumulatively
downloaded by
65,319,600
users
In 2021
With average training hours
per capita (for parent
company) of
hours
Staff training attendance
reached
person times
66.81,396,745
Coverage ratio of staff training
reached
100%
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6. Giving Back to the Community so as to Convey the Warmth of Finance
Supporting rural revitalization
The Company actively responses to national strategies by consolidating the achievements in poverty
alleviation and continuously promoting rural revitalization.
The Company has established a service system featuring with the leadership and command of the
management, coordination between different functional departments, specific coordination within
branches, and the active engagement of all subsidiaries with their expertise. The Company has given full
play to its advantages in market industry and financial expertise, injected its capital, technology, talents,
management and other modern production factors into villages with putting major efforts in aspects such
as party building and association building, industrial support, consumer support and public welfare support,
thus to make contribution to the comprehensive revitalization of villages in the new era.
In 2021, the Company was awarded the honorary title of “Advanced Unit for Poverty Alleviation 2020” by the
Old Liberated Area Construction Association, Foundation for Poverty Alleviation and Association for Poverty
Alleviation and Development of Jiangsu Province.
Supporting ecological protection
Huatai Securities launched the campaign “One Commonweal Heart of Huatai One Yangtze River” in 2018
and cooperated with charitable organizations such as the World Wildlife Fund (WWF) and Shan Shui
Nature Conservation Center as well as other private protection authorities, university research institutions
and the public, to jointly protect the biodiversity of the Yangtze River Basin and promote the harmonious
development of the ecological environment.
In 2021, the Company continuously united professional forces, conveyed the warmth of finance, promoted
the dialogue and coordination between ecological protection and the capital market, boosted the strategic
input of green finance and guided capital inflow into public welfare. In the source region of the Yangtze
River, the Company has established a community protection base with a total area of 2,000 square
In September 2021, the “One Commonweal
Heart of Huatai One Yangtze River” project
was selected into the “100+ Biodiversity
Positive Practices and Actions Around
the World” at the 15th meeting of the
UN Conference of the Parties to the
Convention on Biological Diversity (CBD
COP15).
100+
kilometers and constantly improved resolutions on the
ecological protection and the balanced development
of communities. In the middle and lower reaches of
the Yangtze River, the Company and the WWF jointly
launched the project “One Yangtze River Small Fund for
Wildlife Protection” (Phase-II) to support the protection
of nine representative threatened species, including the
Yangtze porpoise and Aythya baeri, and their habitats
by Fudan University and other local institutions, filling
the blankness in the protection of certain threatened
species. In addition, the Company and China
Environmental Protection Foundation jointly launched
a 4K documentary on biodiversity protection, Huatai
Securities Asset Management and the SEE Foundation
launched the first asset management product with the
theme of public welfare and the Company launched
the “One Yangtze River Thousands of Cranes” and other
public welfare campaigns to protect biodiversity in all
aspects.
Practicing charity with love
The Company has launched the “One Commonweal Heart of Huatai One Tomorrow” rural education
program for six consecutive years, subsidizing the construction of software and hardware facilities in 5
schools in Jinzhai and Yuexi in Anhui Province, Enshi, Hubei Province, Suqian, Jiangsu Province and Yushu,
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As of the end of 2021, the “One Commonweal Heart of Huatai One Tomorrow”
ural education program benefited
55,758
children
9,195
teachers
III. DETAILS ON CONSOLIDATION AND EXPANSION OF THE RESULTS OF
POVERTY ALLEVIATION, RURAL REVITALIZATION AND OTHER WORK
“One Company Helps One County” continuously deepened. The Company carried out the “One Company
Helps One County” assistance in pair with Jinzhai County, Anhui Province in October 2016 and Jinzhai County
was lifted from poverty in April 2020. In order to further consolidate the results of poverty alleviation and
summarize the experience on assistance in pair, the Company drafted and published the Research Report
on Regional Economy of Jinzhai County, which introduced the current development conditions of regional
economy, analyzed the difficulties in economic development and proposed forward-looking thinking and
professional suggestions on future development. Giving full play to its professional advantages and based
on the demands in industrial development in Jinzhai Country, the Company coordinated professional
staff to assist in the asset securitization program on the photovoltaic power station in Jinzhai Economic
Development Zone and carry out the coordination and preparation work. It provided “dual support for
aspiration and wisdom” and provided the government of Jinzhai County with “Smooth Learning” services
under the support of the Securities Association of China. With systematic and diversified learning resources,
it can better publicize financial knowledge and empower local financial cadres.
Seeking development through “East-west Collaboration”. The Company actively responded to the calls
of the Party committee and government of Jiangsu Province, adapted to the changes in the situation
and tasks and deepened the assistance under the east-west collaboration. During the Reporting Period,
it donated RMB500,000 to the pilot program on the environmental renovation in Keziletao Village, Halajun
Township, Atushi City, Kizilsu Kirghiz Autonomous Prefecture, Xinjiang to promote poverty alleviation and rural
revitalization and improve the production and living conditions in border areas. It donated RMB200,000 to
the charity program with the theme of “Jiangsu-Guizhou Targeted Poverty Alleviation • Spring Bud Program”,
which subsidizes poverty-stricken students in Tongren City, Guizhou Province to successfully finish their
studies. It proactively carried out assistance through consumption and procured agricultural and sideline
products with an amount of RMB458,300 from Qinghai and Tibet.
“Village-enterprise Construction” in full swing. Since November 2020, the Company has initiated the “village-
enterprise construction” in 10 villages in 5 cities in middle and north Jiangsu, including 2 villages in Xuzhou, 3
villages in Yancheng, 1 village in Huai’an, 2 villages in Yangzhou and 2 villages in Taizhou. With the target of
“building up foundations in the first year, making development in the second year and gaining results in the
third year”, the Company devoted itself to the village-enterprise cooperation for common development and
contributed to rural revitalization. During the Reporting Period, the Company invested assistance capitals
with a total amount of RMB6.20 million and promoted the implementation of 14 assistance programs, which
vigorously boosted the income growth of the collective economy of villages under the program and led the
villagers in taking the path of common prosperity.
Qinghai Province. According to the differentiated demands of schools, the Company also introduced expert
resources in such aspects as psychology, pedagogy, sociology, tangible cultural heritage and ecology, and
regularly offered services to left-behind children and teachers, including neighborly action, summer training
for class teachers, funding for children in need, natural education and psychological counselling, in order to
continuously improve the specialization of the project.
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I. PERFORMANCE OF UNDERTAKINGS
II. THERE WAS NO NON-OPERATING MISAPPROPRIATION OF FUNDS
OF THE COMPANY BY ANY CONTROLLING SHAREHOLDERS AND
OTHER RELATED PARTIES DURING THE REPORTING PERIOD.
III. THE COMPANY HAD NO GUARANTEES IN VIOLATION OF
REGULATIONS DURING THE REPORTING PERIOD.
Undertakings of de facto controllers, Shareholders, related parties, purchasers
of the Company, the Company and other undertaking-related parties made or
remained effective during the Reporting Period
Background
of
undertaking
Type of
undertaking
Undertaking
party Content of undertaking
Date and
duration of
undertaking
Any
deadline for
performance
or not
Strictly
performed
in a timely
manner or not
Other
undertakings
made to
minority
Shareholders
of the
Company
To solve
horizontal
competition
Guoxin Group
Guoxin Group and its subsidiaries
or associated companies shall not
engage in or conduct any business
which may compete with the primary
business of Huatai Securities in any
way (including but not limited to self-
operated, joint venture or associated) at
any time in the future (except for Jintai
Futures Co., Ltd.). For any opportunities
to conduct, engage in or invest in any
business that may compete with the
business of Huatai Securities available
to Guoxin Group and its subsidiaries or
associated companies, Guoxin Group
will give such opportunities to Huatai
Securities (except for Jintai Futures Co.,
Ltd.).
Issuing date:
June 27, 2014;
expiry date: in a
long term
No Yes
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Major Events
HUATAI SECURITIES
IV. STANDARD UNQUALIFIED OPINION AUDIT REPORT WAS PREPARED
BY THE ACCOUNTING FIRM OF THE COMPANY.
VI. APPOINTMENT AND REMOVAL OF ACCOUNTING FIRM
V. ANALYSIS AND EXPLANATION FROM THE COMPANY ON THE
REASONS AND IMPACT OF THE CHANGE OF ACCOUNTING POLICIES
AND ACCOUNTING ESTIMATES OR CORRECTION OF MAJOR
ACCOUNTING ERRORS
(I) Analysis and explanation from the Company on the reasons and impact of the
change of accounting policies and accounting estimates
For the change of accounting policies and accounting estimates during the Reporting Period, please refer
to note 2. Significant Accounting Policies under Financial Report in this report.
(II) The Company made no correction of major accounting errors
Unit: Ten Thousand Yuan Currency: RMB
Currently employed units
Name of the domestic accounting firm KPMG Huazhen LLP
Remuneration of the domestic accounting firm 332
Audit duration of the domestic accounting firm 8 years
Name of the overseas accounting firm KPMG
Remuneration of the overseas accounting firm 265
Audit duration of the overseas accounting firm 7 years
Name Remuneration
Accounting firm for the
auditing of internal controls
KPMG Huazhen LLP
Please refer to the description
below this table
Description of appointment and removal of accounting firm
During the Reporting Period, as approved at the 2020 Annual General Meeting of the Company, the
Company reappointed KPMG Huazhen LLP to audit the financial statements and conduct internal control
audit of the Company and its holding subsidiaries for 2021 to issue the 2021 audit report and internal control
audit report. The audit service fee was capped at RMB6.00 million.
VII. THE COMPANY HAD NO RISKS OF SUSPENSION OF LISTING,
TERMINATION OF LISTING, BANKRUPTCY AND RESTRUCTURING
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VIII. MATERIAL LITIGATION AND ARBITRATION
During the Reporting Period, there were no material litigation and arbitration of the Company with amount
involving more than RMB10 million and accounting for more than 10% of the absolute value of the audited
net assets of the Company for the latest period, which are required to be disclosed by the Rules Governing
the Listing of Stocks on the Shanghai Stock Exchange.
(I) Litigation and Arbitration Disclosed in Ad hoc Announcements without
Subsequent Development
(II) Litigation and Arbitration not Disclosed in Ad hoc Announcements or with
Subsequent Development
The litigation or arbitration of the Company which was newly raised but has not been disclosed (with an
involved amount of over RMB100 million) or has been disclosed but had progress during the Reporting
Period:
1. Debt dispute between the Company and Sichuan Shengda Group Co., Ltd. (
四川聖達集團有限
公司
)
The interest of corporate bond of Sichuan Shengda Group Co., Ltd. of 2012 (“12 Shengda bond” (12
聖達
債
), bond code: 1280443) was not able to be paid to the Company in full and the principal amount of the
bond was not able to be paid for redemption in full upon maturity. The Company and other creditors jointly
entrusted Chengdu Branch of the Bank of Tianjin Co., Ltd. to lodge litigation at Sichuan Higher People’s Court
on June 7, 2016 according to the decision made in the meeting of bondholders, requesting Sichuan Shengda
Group Co., Ltd. to repay the principal amounts and interests. The total principal amount was RMB300 million,
the interest shall be paid at the coupon rate of 7.25% calculated from December 6, 2014 till the date of
repayment, and the penalty interest shall be paid at the annual interest rate of 3.625% calculated from
December 6, 2015 till the date of repayment (of which RMB50 million was attributable to the Company). The
case was closed through mediation. Sichuan Shengda Group Co., Ltd. agreed to pay the money above,
confirming that Chengdu Branch of Bank of Tianjin Co., Ltd. is entitled to the priority of claim for the money
from disposal of the pledge and that relevant personnel are jointly responsible for liquidation. At present, the
Intermediate People’s Court in Leshan City, Sichuan Province, the executive court, is disposing the pledge,
among which 10 million shares of “GWACG” (stock code: 000835) were auctioned for the second time on
November 21, 2018. The second largest shareholder of GWACG won the equity at RMB42.68 million. In February
Summary and type of event Query indexes
Debt disputes between Huatai United Securities, Stone Group (
四通集
團
) and Stone Group Financial Company (
四通集團財務公司
)
Could be retrieved in the annual
reports for the Year 2011 to 2020
Debt disputes between Huatai United Securities and Beijing Huazi
Syndicated Group (
北京華資銀團集團
)
Could be retrieved in the annual
reports for the Year 2011 to 2020
Debt disputes between Huatai United Securities, China Huacheng
Group Financial Co., Ltd. (
中國華誠集團財務有限責任公司
) and
Huacheng Investment Management Co., Ltd. (
華誠投資管理有限公司
)
Could be retrieved in the annual
reports for the Year 2011 to 2020
Stock pledged repurchase contract dispute under No. 3 Targeted
Assets Management Plan on Capital Innovation of China Merchants
of Huatai Asset Management
Could be retrieved in the annual
report for the Year 2020
A considerable overloss in futures account of Zhang Xiaodong, a
client of Huatai Futures
Could be retrieved in the annual
reports for the Year 2013 to 2020
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2019, the Company received the auction proceeds of approximately RMB7.01 million. Equity of Sichuan
Shengda Hydropower Development Co., Ltd. (
四川聖達水電開發有限公司
) amounting RMB78 million, the
pledge, was publicly auctioned and sold, but the auction failed because no one bid. The creditors agreed
to settle the debt with the equity. After deduction of fees, the court delivered the equity to the execution
applicant, Chengdu Branch of Bank of Tianjin Co., Ltd. on July 12, 2021 to settle the debt of RMB98,948,752.
The disposal of the equity is still in progress, and there is no cash collection yet. As of December 31, 2021, the
principal, interest and penalty interest receivable by the Company from Sichuan Shengda Group Co., Ltd.
were RMB44.5668 million, RMB22.8567 million and RMB10.4042 million, respectively.
2. Dispute over pledged securities repurchase
Matters Descriptions
Dispute over
pledged securities
repurchase between
the Company, Chu
Jinfu, Tang Fujun
and Henan Senyuan
Group Co., Ltd.
Due to the breach of contract on stock pledged repurchase transaction by Chu Jinfu, the
Company filed a lawsuit with the Intermediate People’s Court of Nanjing in July 2020, requesting
the court to order Chu Jinfu to pay the outstanding principal of RMB571.80 million and the
corresponding interest, liquidated damages and the fees on the realization of creditor’s rights,
order Tang Fujun to undertake joint settlement obligations and order that the Company is entitled
to the priority of claim for the money from the discounting, auction or sale of relevant shares,
equity interests and the corresponding dividend pledged to the Company by Chu Jinfu and Henan
Senyuan Group Co., Ltd. (hereinafter referred to as “Senyuan Group”) within the scope of relevant
payment obligations. On June 24, 2021, the Company received the first-instance judgment from
the Intermediate People’s Court of Nanjing, ruling that Chu Jinfu, the defendant, shall repay the
financing principal, the interest and liquidated damages to the Company and pay the lawyer’s fee.
The Company is entitled to the priority of claim for the money from the discounting, auction or sale
of relevant shares, equity interests and the corresponding dividend pledged to the Company by
Chu Jinfu and Senyuan Group within the scope of the above payment obligations. Tang Fujun shall
undertake joint responsibilities on the payment obligations of Chu Jinfu. On July 8, 2021, Senyuan
Group and Tang Fujun appealed to the High People’s Court of Jiangsu Province. On December
23, 2021, the Company received the second-instance judgment from the High People’s Court of
Jiangsu Province, which rejected the appeal and upheld the original judgment.
Dispute over
pledged securities
repurchase between
the Company, Henan
Senyuan Group Co.,
Ltd. and Chu Jinfu
Due to the breach of contract on stock pledged repurchase transaction by Senyuan Group, the
Company filed a lawsuit with the Intermediate People’s Court of Nanjing in July 2020, requesting
the court to order Senyuan Group to pay the outstanding principal of RMB300 million and the
corresponding liquidated damages and the fees on the realization of creditor’s rights, order Chu
Jinfu to undertake joint settlement obligations and order that the Company is entitled to the
priority of claim for the money from the discounting, auction or sale of relevant shares, equity
interests and the corresponding dividend pledged to the Company by Senyuan Group within
the scope of relevant payment obligations. On June 24, 2021, the Company received the first-
instance judgment from the Intermediate People’s Court of Nanjing, ruling that Senyuan Group, the
defendant, shall repay the financing principal and liquidated damages to the Company and pay
the lawyer’s fee. The Company is entitled to the priority of claim for the proceeds from the disposal
of relevant shares, equity interests and the corresponding dividend pledged to the Company by
Senyuan Group within the scope of the above payment obligations. Chu Jinfu shall undertake
joint responsibilities on the above payment obligations of Senyuan Group. On July 8, 2021,
Senyuan Group appealed to the High People’s Court of Jiangsu Province. On December 23, 2021,
the Company received the second-instance judgment from the High People’s Court of Jiangsu
Province, which rejected the appeal and upheld the original judgment.
Dispute over pledged
securities repurchase
between the
Company, Han Hua
and Yang Lijun
Due to the breach of contract on stock pledged repurchase transaction by Han Hua, the Company
filed a lawsuit with the Intermediate People’s Court of Nanjing in August 2020, requesting the
court to order Han Hua to pay the outstanding principal of RMB161,905,600 and the corresponding
interest, liquidated damages and the fees on the realization of creditor’s rights, order Yang
Lijun to undertake joint settlement obligations and order that the Company is entitled to the
priority of claim for the money from the discounting, auction or sale of relevant shares and
the corresponding dividend pledged to the Company by Han Hua within the scope of relevant
payment obligations. On June 16, 2021, the Company received the first instance judgment from
the Intermediate People’s Court of Nanjing, ruling that Han Hua shall pay the amount on the stock
repurchase transaction and liquidated damages to the Company. The Company is entitled to the
priority of claim for the proceeds from the disposal of relevant shares pledged by Han Hua. Yang
Lijun shall undertake joint settlement responsibilities on the debts of Han Hua. The Company has
lodged an application to the Intermediate People’s Court of Nanjing for enforcement.
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Matters Descriptions
Dispute over
pledged securities
repurchase between
the Company, Yang
Lijun and Han Hua
Due to the breach of contract on stock pledged repurchase transaction by Yang Lijun, the
Company filed a lawsuit with the Intermediate People’s Court of Nanjing in September 2020,
requesting the court to order Yang Lijun to pay the outstanding principal of RMB101,268,300 and
the corresponding interest, liquidated damages and the fees on the realization of creditor’s rights,
order Han Hua to undertake joint settlement obligations and order that the Company is entitled
to the priority of claim for the money from the discounting, auction or sale of relevant shares and
the corresponding dividend pledged to the Company by Yang Lijun. On July 12, 2021, the Company
received the first-instance judgment from the Intermediate People’s Court of Nanjing, ruling that
Yang Lijun shall pay the amount on the stock repurchase transaction and liquidated damages to
the Company. The Company is entitled to the priority of claim for the proceeds from the disposal
of relevant shares pledged by Yang Lijun. Han Hua shall undertake joint settlement responsibilities
on the debts of Yang Lijun. The Company has lodged an application to the Intermediate People’s
Court of Nanjing for enforcement.
3. Arbitration on the Dispute in relation to the Master Agreement on Bond Pledge Repurchase
Transactions of Shanghai Stock Exchange between Everbright Securities Company Limited
and the Company
During the Reporting Period, the Company received an arbitration document from Shanghai International
Economic and Trade Arbitration Commission (Shanghai International Arbitration Center). Everbright
Securities Company Limited applied to Shanghai International Economic and Trade Arbitration Commission
for arbitration on the bond pledge repurchase transactions of Shanghai Stock Exchange, requesting the
Company to repay the financing amount under four repurchase transactions under relevant agreements
together with the corresponding interest and liquidated damages with a total amount of RMB240,149,300. As
the Company is not the repurchasing party in the repurchase transactions under the agreements involved
and it is only the dealer of the repurchasing party, the Company has appointed lawyers to respond to the
case. On October 29, 2021, the case was heard at the Shanghai International Economic and Trade Arbitration
Commission. No arbitral award has been received by the Company as of the end of the Reporting Period.
4. Dispute between Huatai United Securities and investors of 16 Bright Oceans Bonds
Bright Oceans Group Co., Ltd. was approved to issue corporate bonds with a nominal value of no more than
RMB2.5 billion (the “16 Bright Oceans Bonds”) to qualified investors in 2015. Huatai United Securities served as
the joint lead underwriter.
(1) Disclosed cases with new developments
On October 26, 2020, Huatai United Securities received a notice of respondence to action from the First
Intermediate People’s Court of Beijing. China Foreign Economy and Trade Trust Co., Ltd., the plaintiff,
believed the bonds have breached contract and there were false and misleading statements or significant
omissions in the Prospectus and the lead underwriter and the joint lead underwriter failed to perform due
diligence obligations. It filed a lawsuit against the issuer, the lead underwriter and the joint lead underwriter,
requesting the issuer to repay a principal of RMB45 million and interest of RMB16,481,126 and requesting the
lead underwriter and the joint lead underwriter to undertake joint responsibilities.
On October 31, 2020, Huatai United Securities received a notice of respondence to action from the First
Intermediate People’s Court of Beijing. Shenzhen Rongtong Capital Management Co., Ltd., the plaintiff, filed a
lawsuit against the issuer, the lead underwriter and the joint lead underwriter, requesting the issuer to repay
a principal of RMB500 million, the interest and the fees on the realization of the creditor’s rights with a total
amount of RMB602.4 million, and requesting the lead underwriter and the joint lead underwriter to undertake
joint responsibilities.
On November 5, 2020, Huatai United Securities received a notice of respondence to action from the First
Intermediate People’s Court of Beijing. CITIC Trust Co., Ltd. (
中信信託有限責任公司
), the plaintiff, filed a lawsuit
against the issuer, the lead underwriter and the joint lead underwriter, requesting the issuer to repay a
HUATAI SECURITIES
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principal of RMB20 million and the interest with a total amount of RMB23,536,400, and requesting the lead
underwriter and the joint lead underwriter to undertake joint responsibilities.
For the above cases, the First Intermediate People’s Court of Beijing has ruled that the three cases shall
be combined for trial and handed over to the Intermediate People’s Court of Harbin. On August 3, 2021, the
Intermediate People’s Court of Harbin served a civil judgment to lawyers of the Company, ruling that the
claims of the three plaintiffs have been effectively settled through bankruptcy and restructuring procedures
and that the debtor-creditor relationship between the plaintiffs and the defendant have been terminated.
Therefore, it rejected the claims of the plaintiffs. As for the first-instance judgment, Shenzhen Rongtong
Capital Management Co., Ltd. did not appeal, and China Foreign Economy and Trade Trust Co., Ltd. and
CITIC Trust Co., Ltd. appealed. As China Foreign Economy and Trade Trust Co., Ltd., the appellant, failed to
pay its lawsuit fees on time, on December 30, 2021, the Higher People’s Court of Heilongjiang Province issued
the Civil Judgment of (2021) Hei Min Zhong No. 2085, and the case was handled as the plaintiff withdrew the
lawsuit. The first-instance judgment shall take effect from the date of service of the judgment. The second
instance of the case with CITIC Trust Co., Ltd. as the appellant was heard on January 21, 2022.
(2) New case
On March 8, 2021, Huatai United Securities received a notice of respondence to action from the First
Intermediate People’s Court of Beijing. China Securities Funds Management Limited, the plaintiff, filed a
lawsuit against the issuer, requesting the issuer to repay the principal and interest of the bond with a
total amount of RMB85,684,579 and requesting the lead underwriter and the joint lead underwriter, the
responsible person on the issuance, the accounting firm and the law firm to undertake joint compensation
responsibilities.
The First Intermediate People’s Court of Beijing made a ruling on April 25, 2021 that the case is handed over
to the Intermediate People’s Court of Harbin. It was because the plaintiff failed to pay its lawsuit fees on
time. On August 25, 2021, the Intermediate People’s Court of Harbin issued the Civil Judgment of (2021) Hei 01
Min Chu No. 1931, and the case was handled as the plaintiff withdrew the lawsuit.
5. Dispute over Magnate project between Huatai United Securities and Postal Savings Bank
For the “Huatai Magnate Light Asset-backed Special Program” (the “Magnate ABS”), Shanghai Fortune HFT
Asset Management Co., Ltd. (
上海富誠海富通資產管理有限公司
) acted as the program manager and Huatai
United Securities acted as the financial consultant.
On September 21, 2020, Shanghai Financial Court issued the Notice of Respondence to Action and served
it to Huatai United Securities on September 25. Since investment in “Magnate ABS” was not fully redeemed,
Postal Savings Bank of China, the plaintiff, requested to order the five defendants to jointly compensate the
plaintiff an investment loss of RMB527 million and interest of RMB72 million (as of June 1, 2020) and order
the lawsuit fees shall be assumed by the five defendants, among which Huatai United Securities was listed
as the fifth defendant. Shanghai Financial Court heard the case three times on July 9, October 25 and
December 24, 2021, respectively. No result of the first-instance judgment was received as of the end of the
Reporting Period.
6. Bond default contract dispute under Huatai collective asset management program of
Huatai Asset Management
On June 24, 2020, Huatai Asset Management, on behalf of the collective asset management program and
as the plaintiff, lodged a civil lawsuit with Shanghai Financial Court on the violation of contract related to “16
Rightway 03” bonds against Rightway Property Development Co., Ltd. (
正源房地產開發有限公司
), the issuer
of the bonds, as the defendant and the amount involved was approximately RMB171 million. The case was
officially accepted and is under first trial. Based on relevant opinions and requirements of the Supreme
People’s Court on bonds review, the case has been transferred to the Intermediate People’s Court of Dalian.
The Intermediate People’s Court of Dalian issued a civil judgment on August 20, 2021, the result thereof
basically all supported the claims of Huatai Asset Management. As for calculation of the principal, interest
and liquidated damages in the first-instance judgment, the defendant filed an appeal. Liaoning High
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People’s Court ruled on December 28, 2021 to uphold the original judgment. Huatai Asset Management shall
proactively promote follow-up executions.
IX. SUSPECTED VIOLATIONS OF LAWS AND REGULATIONS BY,
PUNISHMENT ON AND RECTIFICATION OF THE COMPANY AND ITS
DIRECTORS, SUPERVISORS, SENIOR MANAGEMENT, CONTROLLING
SHAREHOLDERS AND DE FACTO CONTROLLERS
X. INTEGRITY OF THE COMPANY AND ITS CONTROLLING SHAREHOLDERS
AND DE FACTO CONTROLLERS DURING THE REPORTING PERIOD
XI. MAJOR RELATED-PARTY TRANSACTIONS
1. On July 22, 2021, Shanghai Bureau of the CSRC issued the Decision on Ordering of Huatai Securities
(Shanghai) Asset Management Co., Ltd. to Take Rectification Measures (Hu Zheng Jian Jue [2021] No. 104) to
Huatai Asset Management, stating that Huatai Asset Management has insufficient internal control system in
the process of carrying out fixed-income business, the credit risk management mechanism is unsound, and
it fails to accurately identify, prudently assess and wholly manage the credit risks, and some products have
liquidity risks. Huatai Asset Management was ordered to take rectifications and submit a written report to
Shanghai Bureau of the CSRC before August 31, 2021.
In response to the issues raised in (Hu Zheng Jian Jue [2021] No. 104), Huatai Asset Management conducted
comprehensive reviews and took rectifications in a timely manner. Through rectification measures on
several aspects, including bond credit research, product liquidity management, risk control, investment and
research system, the Plan on Risk Control System of Fixed-income Business of Huatai Securities (Shanghai)
Asset Management Co., Ltd. was prepared and implemented. Currently, Huatai Asset Management has
completed its rectifications and submitted a written rectification report to Shanghai Bureau of the CSRC on
August 9, 2021, and obtained the acceptance.
2. Save for the foregoing, none of the Company and its Directors, Supervisors, senior management,
shareholders holding over 5% of equity interest or de facto controllers were investigated by competent
authorities, imposed with coercive measures by a judiciary authority or disciplinary department, transferred
to a judicial authority or held criminally liable, banned from accessing to the market, identified as unsuitable
persons, punished by other administrative departments or publicly condemned by a stock exchange.
During the Reporting Period, the Company and its de facto controllers maintained good faith with no cases
such as non-performance of effective court judgment or overdue of relatively large liability.
Details on the related-party transactions under the relevant accounting standards can be found in note
55 to the financial statements of this report headed “Related party relationships and transactions”. The
Company confirmed that, except for the following transaction, the related-party transactions shown in
notes to the financial statements were not qualified as the “connected transactions” or the “continuing
connected transactions” as defined in Chapter 14A of the Hong Kong Listing Rules (as the case may be), and
those qualified as the connected transactions in Chapter 14A of the Hong Kong Listing Rules were fully in
compliance with the disclosure requirements under Chapter 14A of the Hong Kong Listing Rules.
HUATAI SECURITIES
202
Establishment of a Partnership (Nanjing Huatai Guoxin Medical Investment Partnership (LP))
In order to explore potential investment opportunities and bring benefits and obtain better returns
to shareholders, on December 31, 2020, Huatai Purple Gold Investment (as a general partner and an
executive partner) and Jiangsu Investment Management Co., Ltd. (as a general partner), Nanjing
Industrial Development Fund Co., Ltd. (as a limited partner) and Nanjing Beilian Venture Capital Co., Ltd.
(as a limited partner) entered into a partnership agreement to establish Nanjing Huatai Guoxin Medical
Investment Partnership (LP), which mainly focuses on investing in the medical and health industry, including
biomedicine, medical equipment, medical services and other fields. Pursuant to the partnership agreement,
the total capital contribution by all partners to the partnership shall be RMB3,000,000,000, being initial
subscription scale for the fund and of which, Huatai Purple Gold Investment shall contribute RMB600,000,000.
Huatai Purple Gold Investment serves as the fund manager, providing investment consulting, investment
management and other services to the partnership, and the partnership shall pay the fund management
fee to Huatai Purple Gold Investment. From the date of establishment of the partnership to the expiry of the
thirty-sixth month from the date of establishment of the partnership, the billing base of the management
fee that each partner shall share is the amount of subscribed capital contribution and the rate of 1% per
year; From the day after the expiry of thirty-sixth month from the date of establishment of the partnership, to
the expiry of eighty-fourth month from the date of establishment of the partnership, the billing base of the
management fee that each partner shall share is the original investment cost of the partnership that has
invested but has not yet withdrawn from the investment project, and the rate of 1% per year. On January 29,
2021, the Board of the Company considered and approved the Proposal on the Establishment of Industrial
Fund by Huatai Purple Gold Investment Co., Ltd., a Wholly-owned Subsidiary of the Company (
《關於公司全資
子公司華泰紫金投資有限責任公司投資設立產業基金的議案》
) and the main rights and obligations of Huatai Purple
Gold Investment and Jiangsu Investment Management Co., Ltd. in the partnership agreement will take
effect upon the approval of the Board of the Company and fulfilment of the approval or decision-making
procedures by Jiangsu Investment Management Co., Ltd. For details, please refer to the announcement of
the Company dated January 29, 2021.
Guoxin Group is a substantial shareholder of the Company, holding approximately 14.86% of the entire
issued share capital of the Company on January 29, 2021, and thus is a connected person of the Company
under the Hong Kong Listing Rules. Jiangsu Investment Management Co., Ltd. is a wholly-owned subsidiary
of Guoxin Group, and hence Jiangsu Investment Management Co., Ltd. is an associate of Guoxin Group
and a connected person of the Company under the Hong Kong Listing Rules. Accordingly, the transaction
contemplated under the establishment of the partnership constitutes a connected transaction of the
Company under Chapter 14A of the Hong Kong Listing Rules. As the highest applicable percentage ratio in
respect of the capital contribution for the establishment of the partnership is more than 0.1% but less than
5%, as calculated under Rule 14.07 of the Hong Kong Listing Rules, the establishment of the partnership is
only subject to the reporting and announcement requirements, but exempted from the requirements of
circular and independent shareholders’ approval under Chapter 14A of the Hong Kong Listing Rules. As all
the applicable percentage ratios in respect of the management fees receivable by Huatai Purple Gold
Investment as the fund manager of the partnership are less than 0.1%, as calculated under Rule 14.07 of
the Hong Kong Listing Rules, the collection of the management fees is exempted from the requirements of
reporting, announcement and independent shareholders’ approval under Chapter 14A of the Hong Kong
Listing Rules.
XII. MATERIAL CONTRACTS AND PERFORMANCE THEREOF
(I) Custody, contracting or leasin
During the Reporting Period, the Company was not engaged in any custody, contracting or leasing.
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(II) Guarantees
Unit: 100 Million Yuan Currency: RMB
External guarantees of the Company (excluding the guarantees for subsidiaries)
Total amount of guarantees during the Reporting Period (excluding the guarantees for
subsidiaries)
-
Total balance of guarantees at the end of the Reporting Period (A) (excluding the guarantees for
subsidiaries)
-
Guarantees of the Company and its subsidiaries for its subsidiaries
Total amount of guarantees for subsidiaries during the Reporting Period 90.02
Total balance of guarantees for subsidiaries at the end of the Reporting Period (B) 237.83
Total guarantee amount of the Company (including the guarantees for subsidiaries)
Total guarantee amount (A+B) 237.83
Percentage of the total guarantee amount to net assets of the Company (%) 16.02
Among which:
Amount of guarantees provided for shareholders, actual controllers and their related parties (C) –
Amount of debt guarantees provided directly or indirectly for the guaranteed objects with an
asset-liability ratio of more than 70% (D)
175.83
Excess amount of the total guarantee over 50% of the net assets (E) –
Total amount of the three guarantees mentioned above (C+D+E) 175.83
Undue guarantees with joint and several liabilities
Bearing the principal, interest and other
expenses of the bonds
Conditions of
guarantees
1. Guarantees Provided by the Company
(1) In January 2015, Huatai Asset Management was officially founded. With the steady development of the Company’s asset
management business and the rapid expansion of the scale of asset management, in order to ensure the risk control indicators
of Huatai Asset Management meet the supervisory requirements, the Company’s Shareholders’ meeting reviewed and
approved relevant resolutions respectively on March 30, 2015 and September 13, 2016, approved the Company to offer Huatai
Asset Management a net capital guarantee with the maximum amount of RMB1.2 billion and RMB5.0 billion and promised that,
whenever Huatai Asset Management needs to expand businesses, it will provide cash support within the aforesaid amount
unconditionally.
On December 31, 2020, Shanghai Securities Regulatory Bureau approved the Company to terminate the commitment on the
provision of net capital guarantee with an amount of RMB2.0 billion to Huatai Asset Management. As at the end of the Reporting
Period, the Company provided a total net capital guarantee with the maximum amount of RMB4.2 billion to Huatai Asset
Management.
(2) In 2017, as approved and passed at the fifth meeting of the fourth session of the Board and the 2016 Annual General Meeting
of the Company, the Company provided a net capital guarantee with the maximum amount of RMB1.9 billion to Huatai Asset
Management. The net capital guarantee of RMB1.9 billion has not been utilized during the Reporting Period.
(3) In 2018, as approved and passed at the sixteenth meeting of the fourth session of the Board, the Company provided a net
capital guarantee with the maximum amount of RMB2.0 billion to Huatai United Securities. The net capital guarantee will be
available from July 1, 2019.
(4) In 2019, as considered and approved at the twentieth meeting of the fourth session of the Board, the Company (as the
guarantor) entered into a guarantee agreement with Citicorp International Limited (as the trustee) for the provision of an
unconditional and irrevocable guarantee of USD500 million for the bonds issued by Pioneer Reward Limited, a subsidiary of
Huatai International. In 2020, as considered and approved at the second meeting of the fifth session of the Board, the Company
(as the guarantor) entered into a guarantee agreement with Citicorp International Limited (as the trustee) for the provision of
an unconditional and irrevocable guarantee of USD400 million for the bonds issued by Pioneer Reward Limited, a subsidiary of
Huatai International.
(5) In 2020, as considered and approved at the seventh meeting of the fifth session of the Board, the Company provided a
liquidity guarantee with a maximum amount of RMB2.0 billion to Huatai United Securities, which had not been utilized during the
Reporting Period.
(6) In April 2021, as considered and approved at the eleventh meeting of the fifth session of the Board and the 2021 First
Extraordinary General Meeting of the Company, the persons authorized by the general mandate to issue onshore and offshore
debt financing instruments of the Company may sign relevant agreements, and the Company (as the guarantor) has entered
into a guarantee agreement with Citicorp International Limited (as the trustee), to provide an unconditional and irrevocable
guarantee respectively for USD1,300 million bonds and additional USD100 million bonds issued by Pioneer Reward Limited, a
subsidiary of Huatai International.
2. Guarantees Provided by the Subsidiaries
During the Reporting Period, Huatai International and its subsidiaries had provided guarantees for the benefits of their
subsidiaries in connection with their business operations, which are mainly guarantees for corporate bonds, guarantees for
medium-term notes, and guarantees for transactions with counterparties involving the signing of international swaps and
derivatives association agreements. The aggregate guaranteed amount was approximately RMB2.355 billion as of the end of
the Reporting Period.
3. The aforesaid amount of debt guarantees provided directly or indirectly for the guaranteed objects with an asset-liability
ratio of more than 70% was RMB17.583 billion, including: 1) guarantee provided by the Company to Pioneer Reward Limited, a
subsidiary of Huatai International, for the issuance of USD2.3 billion bonds; 2) the guarantee provided by Huatai International and
its subsidiaries to meet the needs of the business operation of their subsidiaries.
HUATAI SECURITIES
204
(III) Other material contracts
1. According to the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange and the Standards
for the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public No. 2
– Contents and Formats of Annual Report (Revised in 2021) (
《公開發行證券的公司信息披露內容與格式準則第
2
號－
年度報告的內容與格式
(2021
年修訂
)
》
), the Group did not enter into material contracts during the Reporting
Period.
2. There was no progress of relevant material contracts disclosed during the Reporting Period.
XIII. DESCRIPTION OF OTHER MAJOR EVENTS THAT HAVE SIGNIFICANT
IMPACTS ON INVESTORS TO MAKE VALUE JUDGMENTS AND
INVESTMENT DECISIONS
(I) Capital increase in subsidiaries of the Company
For details on capital increase in subsidiaries of the Company during the Reporting Period, please refer to “(IX)
Other information” under “VI. Major Operations during the Reporting Period” under “Management Discussion
and Analysis and Report of the Board” in this report.
(II) Description of major events of the subsidiaries
1. Huatai Purple Gold Investment
During the Reporting Period, the Board of the Company approved the participation of Huatai Purple Gold
Investment in the investment in and establishment of Nanjing Huatai Guoxin Medical Investment Partnership
(Limited Partnership) (
南京華泰國信醫療投資合夥企業
(
有限合夥
)), with a total fund subscription amount of
RMB3,000 million. Huatai Purple Gold Investment, as a fund manager, an executive partner and a general
partner, has contributed RMB600 million. As of the end of the Reporting Period, Huatai Purple Gold Investment
has paid-in capital of RMB240 million.
During the Reporting Period, Huatai Purple Gold Investment initiated the establishment of Huaian Huatai
Yuanhong Technology Venture Capital Partnership (Limited Partnership) (
淮安華泰遠宏科技創業投資合夥企業
(
有限合夥
)), with a total fund subscription amount of RMB500 million. Huatai Purple Gold Investment, as a
fund manager, an executive partner and a general partner, has contributed RMB100 million. As of the end of
the Reporting Period, Huatai Purple Gold Investment has paid-in capital of RMB40 million.
During the Reporting Period, Huatai Purple Gold Investment initiated the establishment of Nanjing Huatai
Zijin Emerging Industry Fund Partnership (Limited Partnership) (
南京華泰紫金新興產業基金合夥企業
(
有限合
夥
)), with a total fund subscription amount of RMB768.625 million. Huatai Purple Gold Investment, as a fund
manager, an executive partner and a general partner, has contributed RMB153.725 million. As of the end of
the Reporting Period, Huatai Purple Gold Investment has paid-in capital of RMB30.745 million.
During the Reporting Period, Huatai Purple Gold Investment has contributed additional RMB87 million to
Jiangsu Purple Gold Cloud Healthy Industry Investment Partnership (Limited Partnership) (
江蘇紫金弘雲健康
產業投資合夥企業
(
有限合夥
)) sponsored and established by it. As of the end of the Reporting Period, Huatai
Purple Gold Investment has paid-in capital of RMB232 million.
During the Reporting Period, Shenzhen Huatai Ruilin No. 1 Equity Management (Limited Partnership) (
深
圳市華泰瑞麟一號股權投資基金合夥企業
(
有限合夥
)) managed by Shenzhen Huatai Ruilin Fund Investment
Management Partnership (Limited Partnership) (
深圳市華泰瑞麟基金投資管理合夥企業
(
有限合夥
)), a holding
subsidiary of Huatai Purple Gold Investment, completed industrial and commercial deregistration.
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2. Huatai International
During the Reporting Period, Huatai International established Taibao Capital Management Co., Ltd. (
泰保資本
管理有限公司
) as its wholly-owned subsidiary in Hong Kong.
During the Reporting Period, AssetMark Financial, Inc., a subsidiary of Huatai International, registered and
established Gossamer Merger Sub, Inc. as its wholly-owned subsidiary, through which it completed the
acquisition of four companies, namely Voyant, Inc., Voyant UK Limited, Voyant Financial Technologies,
Inc. and Voyant Australia Pty Ltd, and completed deregistration of Gossamer Merger Sub, Inc. after the
acquisition.
During the Reporting Period, AssetMark Financial, Inc., a subsidiary of Huatai International, deregistered three
overseas subsidiaries, namely OBS Financial Services, Inc., WBI OBS Financial, LLC and OBS Holdings, Inc.
3. Huatai Futures
During the Reporting Period, Huatai Capital Management (Hong Kong) Limited, an overseas subsidiary
of Huatai Futures, increased its investments in its wholly-owned subsidiaries namely Huatai (Hong Kong)
Futures Limited and Huatai Financial USA, Inc. by HK$6 million and HK$3 million, respectively.
During the Reporting Period, Huatai Futures appointed Mr. Zhao Changtao as the general manager.
4. Jiangsu Equity Exchange
During the Reporting Period, Jiangsu Equity Exchange held a board meeting, at which Mr. Sun Hanlin was
elected as chairman of the third session of the board of directors for a term ending at the expiry of the third
session of the board of directors.
During the Reporting Period, the registered address of Jiangsu Equity Exchange was changed from “11/F,
188 Lushan Road, Nanjing” to “3/F, Building 10, Financial City, No. 377 Middle Jiangdong Road, Jianye District,
Nanjing”.
5. Huatai Innovative Investment
During the Reporting Period, the registered address of Huatai Innovative Investment was changed from
“Room 1501, 15/F, Block 28, Fengsheng Hutong, Xicheng District, Beijing” to “Room 701-8 to 701-11, 7/F, Block 28,
Fengsheng Hutong, Xicheng District, Beijing”.
6. Huatai Asset Management
During the Reporting Period, Huatai Asset Management appointed Mr. Nie Tingjin as the general manager.
(III) Others
The fifth session of the Board convened the twentieth meeting on December 1, 2021, and considered and
approved the Resolution on the Acquisition of 100% Equity Interest in Shanghai Shengju Asset Operation and
Management Co., Ltd. During the Reporting Period, the Company acquired 100% equity interest in Shanghai
Shengju Asset Operation and Management Co., Ltd. by way of public bidding, auction and listing through
Shandong Property Rights Exchange Center, and actually purchased the properties in Building C of Shanghai
Poly Plaza for daily office use. At present, the industrial and commercial registration modification procedures
and the transfer procedures for related assets are still in process.
(IV) For other major events disclosed by the Company on China Securities Journal,
Shanghai Securities News, Securities Times, Securities Daily and the website of the
Shanghai Stock Exchange (www.sse.com.cn) during the Reporting Period, please
refer to Appendix III Information Disclosures Index.
HUATAI SECURITIES
206
XV. MAIN OFF-BALANCE SHEET ITEMS THAT MAY AFFECT THE
COMPANY’S FINANCIAL SITUATION AND OPERATING RESULTS
For the main off-balance sheet items that may affect the Company’s financial situation and operating
results, please refer to “(II) Guarantees” under “XII. Material Contracts and Performance Thereof” under “Major
Events” in this report.
XVI. IMPORTANT MATTERS AFTER THE BALANCE SHEET DATE
(I) Proposal or resolution on annual distribution
Please refer to “Important Notice” in this report.
(II) Material Investment and financing activities
Please refer to note 65 to the financial statements headed “Events after the reporting date” in this report.
(III) Material litigation and arbitration
After the Reporting Period, the Company did not have any material litigation and arbitration.
(IV) Business combination or disposal of subsidiary
After the Reporting Period, the Company did not conduct any business combination or disposal of
subsidiary.
(V) Other situations that might materially affect the financial position, results of
operation and cash flow of the Company after the Reporting Period
The Company had no other situations that might materially affect the financial position, results of operation
and cash flow of the Company after the Reporting Period.
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I. CHANGES IN SHARE CAPITAL
(I) Statement of changes in shares
1. Statement of changes in shares
Before the change Increase/decrease (+, -) of the change After the change
Number
Percentage
(%)
New
shares
issued
Bonus
shares
Shares
converted
from
reserves
Others Subtotal Number
Percentage
(%)
I. Shares subject to
selling restrictions
– – – – – 45,488,000 45,488,000 45,488,000 0.50
1. Shares held by the
state
–
– – – – – – – –
2. Shares held by
state-owned legal
persons
–
– – – – – – – –
3. Shares held by other
domestic investors
–
– – – – – – – –
Including: Shares held
by domestic non-
state-owned legal
persons
–
– – – – – – – –
Shares held by
domestic natural
persons
– – – – – 45,488,000 45,488,000 45,488,000 0.50
4. Shares held by
foreign investors
– – – – – – – – –
Including: Shares held
by overseas legal
persons
– – – – – – – – –
Shares held by
overseas natural
persons
– – – – – – – – –
Unit: Shares
HUATAI SECURITIES
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CHANGES IN SHARES
AND SHAREHOLDERS
HUATAI SECURITIES
Before the change Increase/decrease (+, -) of the change After the change
Number
Percentage
(%)
New
shares
issued
Bonus
shares
Shares
converted
from
reserves
Others Subtotal Number
Percentage
(%)
II. Tradable shares
not subject to selling
restrictions
9,076,650,000 100.00 – – – -45,488,000 -45,488,000 9,031,162,000 99.50
1. Ordinary shares in
RMB
7,357,604,320 81.06 – – – -45,488,000 -45,488,000 7,312,116,320 80.56
2. Domestic listed
foreign shares
– – – – – – – – –
3. Overseas listed
foreign shares
1,719,045,680 18.94 – – – – – 1,719,045,680 18.94
4. Others – – – – – – – – –
III. Total shares
9,076,650,000 100.00 – – – – – 9,076,650,000 100.00
2. Information on changes in shares
During the Reporting Period, the Company completed the registration of the grant of restricted A Shares.
45,488,000 restricted A Shares granted to incentive participants were changed from tradable shares not
subject to selling restrictions to shares subject to selling restrictions, and the source of shares was ordinary
A Shares repurchased by the Company from secondary market.
3. The changes in shares had no impact on earnings per share, net asset value per share or
other financial indicators for the latest year and the latest period
4. Other contents that the Company deemed necessary or the securities regulatory authorities
required to disclose
On July 6, 2021, Guoxin Group notified the Company that Guoxin Group increased its holding of H Shares in
the Company by 2,363,600 H Shares via Southbound Trading, accounting for approximately 0.0260% of the
Company’s total shares. After the increase in shareholding, Guoxin Group held 1,351,597,036 shares of the
Company, accounting for approximately 14.8909% of the Company’s total shares. Guoxin Group intended
to continue to increase its holding of H Shares of the Company via Southbound Trading within the next
six months from the date of the increase in shareholding, with the increased shareholding percentage in
aggregate not less than 0.1102% (10 million shares) of the Company’s total shares and not higher than 0.5%
of the Company’s total shares (inclusive of this increase in shareholding). (See Shanghai Stock Exchange
announcement 2021-045 for details)
On November 22, 2021, Guoxin Group notified the Company that the implementation of the shareholding
increase plan had been completed. During the period from July 6, 2021 to November 22, 2021, Guoxin Group
has increased its holding of H Shares of the Company by 24,248,200 H Shares through Southbound Trading,
accounting for approximately 0.2671% of the Company’s total shares, which reached the lower limit but
did not exceed the upper limit of the shareholding increase plan; the cumulative amount of shareholding
increase was RMB216,501,443.82 (exclusive of service fees). After the increase in shareholding, Guoxin Group
held 1,373,481,636 shares of the Company, accounting for approximately 15.1320% of the total share capital of
the Company. (see Shanghai Stock Exchange announcement 2021-059 for details)
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Name of
shareholder
Number
of shares
subject
to selling
restrictions at
the beginning
of the year
Number
of shares
released
from selling
restrictions
during the
year
Increase in
the number
of shares
subject
to selling
restrictions
during the
year
Number of
shares subject
to selling
restrictions at
the end of the
year
Reasons
for selling
restrictions
Date of
release
from selling
restrictions
Incentive
participants
of restricted A
Shares
- - 45,488,000 45,488,000
Incentive
scheme of
restricted A
Shares
See note for
details
Total - - 45,488,000 45,488,000 / /
Unlocking
Arrangement Unlocking Period
Unlocking
proportion
The first unlocking
period
Commencing from the first trading day upon the expiry of 24 months
from the date of completion of registration for the grant of the
corresponding portion of the restricted shares to the last trading day of
36 months from the date of completion of registration for the grant of
the restricted shares
33%
The second
unlocking period
Commencing from the first trading day upon the expiry of 36 months
from the date of completion of registration for the grant of the
corresponding portion of the restricted shares to the last trading day of
48 months from the date of completion of registration for the grant of
the restricted shares
33%
The third unlocking
period
Commencing from the first trading day upon the expiry of 48 months
from the date of completion of registration for the grant of the
corresponding portion of the restricted shares to the last trading day of
60 months from the date of completion of registration for the grant of
the restricted shares
34%
(II) Changes in shares subject to selling restrictions
Note: The unlocking period and unlocking schedule of each period of the restricted shares granted under the incentive scheme are set out
below:
II. THE ISSUANCE AND LISTING OF SECURITIES
(I) Issuance of securities during the Reporting Period
During the Reporting Period, in order to supplement its working capital and repay its debt financing
instruments, the Company issued the following securities:
Unit: Shares
Types of shares and their
derivative securities Date of issue
Issue
price (or
interest
rate)
Number of
securities issued Date of listing
Number of
securities
permitted to be
listed for trading
Ending date
of the trading
Bonds (including company bonds, corporate bonds and debt financing instruments of non-financial enterprises)
Corporate bonds 2021-01-18 3.58% RMB4.0 billion 2021-01-27 RMB4.0 billion 2024-01-19
Corporate bonds 2021-04-22 3.42% RMB5.0 billion 2021-04-29 RMB5.0 billion 2024-04-25
Corporate bonds 2021-05-13 3.71% RMB6.0 billion 2021-05-26 RMB6.0 billion 2026-05-16
Currency: RMB
HUATAI SECURITIES
210
Types of shares and their
derivative securities Date of issue
Issue
price (or
interest
rate)
Number of
securities issued Date of listing
Number of
securities
permitted to be
listed for trading
Ending date
of the trading
Corporate bonds 2021-05-20 3.28% RMB4.0 billion 2021-05-27 RMB4.0 billion 2024-05-23
Corporate bonds 2021-05-20 3.63% RMB2.0 billion 2021-05-27 RMB2.0 billion 2026-05-23
Corporate bonds 2021-06-10 3.40% RMB2.0 billion 2021-06-21 RMB2.0 billion 2024-06-14
Corporate bonds 2021-06-17 3.45% RMB2.5 billion 2021-06-24 RMB2.5 billion 2024-06-20
Corporate bonds 2021-09-03 3.78% RMB2.7 billion 2021-09-13 RMB2.7 billion 2031-09-06
Corporate bonds 2021-09-03 3.03% RMB1.5 billion 2021-09-13 RMB1.5 billion 2024-09-06
Corporate bonds 2021-10-14 3.99% RMB3.4 billion 2021-10-22 RMB3.4 billion 2031-10-17
Corporate bonds 2021-10-14 3.25% RMB2.1 billion 2021-10-22 RMB2.1 billion 2024-10-17
Corporate bonds 2021-10-21 3.94% RMB1.1 billion 2021-10-28 RMB1.1 billion 2031-10-24
Corporate bonds 2021-10-21 3.22% RMB2.2 billion 2021-10-28 RMB2.2 billion 2024-10-24
Short-term corporate bonds 2021-06-24 2.95% RMB4.0 billion 2021-07-02 RMB4.0 billion 2022-06-27
Short-term corporate bonds 2021-07-07 2.75% RMB2.0 billion 2021-07-15 RMB2.0 billion 2022-02-21
Short-term corporate bonds 2021-07-07 2.87% RMB4.0 billion 2021-07-15 RMB4.0 billion 2022-07-08
Short-term corporate bonds 2021-07-15 2.75% RMB3.0 billion 2021-07-23 RMB3.0 billion 2022-07-18
Short-term corporate bonds 2021-08-05 2.55% RMB4.0 billion 2021-08-13 RMB4.0 billion 2022-02-10
Short-term corporate bonds 2021-08-12 2.51% RMB4.0 billion 2021-08-20 RMB4.0 billion 2022-01-19
Short-term corporate bonds 2021-08-24 2.40% RMB3.0 billion 2021-08-31 RMB3.0 billion 2021-11-08
Short-term corporate bonds 2021-12-02 2.64% RMB2.3 billion 2021-12-10 RMB2.3 billion 2022-06-07
Short-term corporate bonds 2021-12-02 2.70% RMB2.7 billion 2021-12-10 RMB2.7 billion 2022-11-24
Short-term corporate bonds 2021-12-09 2.62% RMB2.0 billion 2021-12-17 RMB2.0 billion 2022-05-12
Short-term corporate bonds 2021-12-17 2.70% RMB1.0 billion 2021-12-27 RMB1.0 billion 2022-09-20
Short-term corporate bonds 2021-12-17 2.75% RMB4.0 billion 2021-12-27 RMB4.0 billion 2022-12-20
Short-term corporate bonds 2021-12-27 2.75% RMB4.0 billion 2022-01-05 RMB4.0 billion 2022-11-28
Subordinated bonds 2021-01-27 4.50% RMB9.0 billion 2021-02-04 RMB9.0 billion 2026-01-28
Perpetual subordinated bonds
2021-09-15 3.85% RMB3.0 billion 2021-09-28 RMB3.0 billion 2026-09-16
Perpetual subordinated bonds
2021-10-26 4.00% RMB5.0 billion 2021-11-03 RMB5.0 billion 2026-10-27
Perpetual subordinated bonds
2021-11-16 3.80% RMB2.0 billion 2021-11-24 RMB2.0 billion 2026-11-17
Short-term financing bonds 2021-01-21 2.48% RMB3.0 billion 2021-01-26 RMB3.0 billion 2021-04-23
Short-term financing bonds 2021-01-25 2.42% RMB3.0 billion 2021-01-28 RMB3.0 billion 2021-04-26
Short-term financing bonds 2021-03-05 2.68% RMB3.0 billion 2021-03-10 RMB3.0 billion 2021-06-04
Short-term financing bonds 2021-06-23 2.40% RMB4.0 billion 2021-06-28 RMB4.0 billion 2021-09-22
Short-term financing bonds 2021-07-13 2.15% RMB4.0 billion 2021-07-16 RMB4.0 billion 2021-10-12
Short-term financing bonds 2021-07-20 2.15% RMB3.0 billion 2021-07-23 RMB3.0 billion 2021-10-19
Information of the issuance of securities during the Reporting Period (for the bonds with different interest
rates in the duration period, please explain separately):
1. Corporate bonds
On January 18, 2021, the Company publicly issued the 2021 Corporate Bonds of Huatai Securities (First
Tranche) (Type I) to professional investors. The amount of the said bonds came to RMB4.0 billion at an issue
price of RMB100 per bond, carrying 3-year fixed rates with a coupon rate of 3.58%. Such bonds were listed
for trading on January 27, 2021. The abbreviation and code of the bonds were “21 Huatai G1” and “175648.SH”,
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respectively, and the amount of the bonds permitted to be listed for trading came to RMB4.0 billion with the
trading ended on January 19, 2024.
On April 22, 2021, the Company publicly issued the 2021 Corporate Bonds of Huatai Securities (Second
Tranche) to professional investors. The amount of the said bonds came to RMB5.0 billion at an issue price of
RMB100 per bond, carrying 3-year fixed rates with a coupon rate of 3.42%. Such bonds were listed for trading
on April 29, 2021. The abbreviation and code of the bonds were “21 Huatai G3” and “188047.SH”, respectively,
and the amount of the bonds permitted to be listed for trading came to RMB5.0 billion with the trading
ended on April 25, 2024.
On May 13, 2021, the Company publicly issued the 2021 Corporate Bonds of Huatai Securities (Third Tranche)
to professional investors. The amount of the said bonds came to RMB6.0 billion at an issue price of RMB100
per bond, carrying 5-year fixed rates with a coupon rate of 3.71%. Such bonds were listed for trading on May
26, 2021. The abbreviation and code of the bonds were “21 Huatai G4” and “188106.SH”, respectively, and the
amount of the bonds permitted to be listed for trading came to RMB6.0 billion with the trading ended on
May 16, 2026.
On May 20, 2021, the Company publicly issued the 2021 Corporate Bonds of Huatai Securities (Fourth
Tranche) to professional investors. The amount of the said bonds came to RMB6.0 billion at an issue price of
RMB100 per bond, carrying 3-year and 5-year fixed rates. The amount of the 3-year bonds came to RMB4.0
billion with a coupon rate of 3.28%, while the amount of the 5-year bonds came to RMB2.0 billion with a
coupon rate of 3.63%. Such bonds were listed for trading on May 27, 2021. The abbreviation and code of the
3-year bonds were “21 Huatai G5” and “188134.SH”, respectively, and the amount of the bonds permitted to
be listed for trading came to RMB4.0 billion with the trading ended on May 23, 2024; the abbreviation and
code of the 5-year bonds were “21 Huatai G6” and “188140.SH”, respectively, and the amount of the bonds
permitted to be listed for trading came to RMB2.0 billion with the trading ended on May 23, 2026.
On June 10, 2021, the Company publicly issued the 2021 Corporate Bonds of Huatai Securities (Fifth Tranche)
(Type I) to professional investors. The amount of the said bonds came to RMB2.0 billion at an issue price of
RMB100 per bond, carrying 3-year fixed rates with a coupon rate of 3.40%. Such bonds were listed for trading
on June 21, 2021. The abbreviation and code of the bonds were “21 Huatai G7” and “188239.SH”, respectively,
and the amount of the bonds permitted to be listed for trading came to RMB2.0 billion with the trading
ended on June 14, 2024.
On June 17, 2021, the Company publicly issued the 2021 Corporate Bonds of Huatai Securities (Sixth Tranche)
(Type I) to professional investors. The amount of the said bonds came to RMB2.5 billion at an issue price of
RMB100 per bond, carrying 3-year fixed rates with a coupon rate of 3.45%. Such bonds were listed for trading
on June 24, 2021. The abbreviation and code of the bonds were “21 Huatai 09” and “188282.SH”, respectively,
and the amount of the bonds permitted to be listed for trading came to RMB2.5 billion with the trading
ended on June 20, 2024.
On September 3, 2021, the Company publicly issued the 2021 Corporate Bonds of Huatai Securities (Seventh
Tranche) to professional investors. The amount of the said bonds came to RMB4.2 billion at an issue price of
RMB100 per bond, carrying 3-year and 10-year fixed rates. The amount of the 3-year bonds came to RMB1.5
billion with a coupon rate of 3.03%, while the amount of the 10-year bonds came to RMB2.7 billion with a
coupon rate of 3.78%. Such bonds were listed for trading on September 13, 2021. The abbreviation and code
of the 3-year bonds were “21 Huatai 11” and “188324.SH”, respectively, and the amount of the bonds permitted
to be listed for trading came to RMB1.5 billion with the trading ended on September 6, 2024; the abbreviation
and code of the 10-year bonds were “21 Huatai 12” and “188325.SH”, respectively, and the amount of the
bonds permitted to be listed for trading came to RMB2.7 billion with the trading ended on September 6, 2031.
On October 14, 2021, the Company publicly issued the 2021 Corporate Bonds of Huatai Securities (Eighth
Tranche) to professional investors. The amount of the said bonds came to RMB5.5 billion at an issue price of
RMB100 per bond, carrying 3-year and 10-year fixed rates. The amount of the 3-year bonds came to RMB2.1
billion with a coupon rate of 3.25%, while the amount of the 10-year bonds came to RMB3.4 billion with a
coupon rate of 3.99%. Such bonds were listed for trading on October 22, 2021. The abbreviation and code of
the 3-year bonds were “21 Huatai 13” and “188874.SH”, respectively, and the amount of the bonds permitted
HUATAI SECURITIES
212
to be listed for trading came to RMB2.1 billion with the trading ended on October 17, 2024; the abbreviation
and code of the 10-year bonds were “21 Huatai 14” and “188875.SH”, respectively, and the amount of the
bonds permitted to be listed for trading came to RMB3.4 billion with the trading ended on October 17, 2031.
On October 21, 2021, the Company publicly issued the 2021 Corporate Bonds of Huatai Securities (Ninth
Tranche) to professional investors. The amount of the said bonds came to RMB3.3 billion at an issue price of
RMB100 per bond, carrying 3-year and 10-year fixed rates. The amount of the 3-year bonds came to RMB2.2
billion with a coupon rate of 3.22%, while the amount of the 10-year bonds came to RMB1.1 billion with a
coupon rate of 3.94%. Such bonds were listed for trading on October 28, 2021. The abbreviation and code of
the 3-year bonds were “21 Huatai 15” and “188926.SH”, respectively, and the amount of the bonds permitted
to be listed for trading came to RMB2.2 billion with the trading ended on October 24, 2024; the abbreviation
and code of the 10-year bonds were “21 Huatai 16” and “188927.SH”, respectively, and the amount of the
bonds permitted to be listed for trading came to RMB1.1 billion with the trading ended on October 24, 2031.
2. Short-term corporate bonds
On June 24, 2021, the Company publicly issued the 2021 short-term Corporate Bonds of Huatai Securities
(First Tranche) (Type II) to professional investors. The amount of the said bonds came to RMB4.0 billion at an
issue price of RMB100 per bond, carrying a 365-day fixed rate with a coupon rate of 2.95%. Such bonds were
listed for trading on July 2, 2021. The abbreviation and code of the bonds were “21 Huatai S2” and “163883.SH”,
respectively, and the amount of the bonds permitted to be listed for trading came to RMB4.0 billion with the
trading ended on June 27, 2022.
On July 7, 2021, the Company publicly issued the 2021 short-term Corporate Bonds of Huatai Securities
(Second Tranche) to professional investors. The amount of the said bonds came to RMB6.0 billion at an issue
price of RMB100 per bond, carrying 228-day and 365-day fixed rates. The amount of the 228-day bonds
came to RMB2.0 billion with a coupon rate of 2.75%, while the amount of the 365-day bonds came to RMB4.0
billion with a coupon rate of 2.87%. Such bonds were listed for trading on July 15, 2021. The abbreviation and
code of the 228-day bonds were “21 Huatai S3” and “163888.SH”, respectively, and the amount of the bonds
permitted to be listed for trading came to RMB2.0 billion with the trading ended on February 21, 2022; the
abbreviation and code of the 365-day bonds were “2021 Huatai S4” and “163889.SH”, respectively, and the
amount of the bonds permitted to be listed for trading came to RMB4.0 billion with the trading ended on July
8, 2022.
On July 15, 2021, the Company publicly issued the 2021 short-term Corporate Bonds of Huatai Securities
(Third Tranche) to professional investors. The amount of the said bonds came to RMB3.0 billion at an issue
price of RMB100 per bond, carrying a 365-day fixed rate with a coupon rate of 2.75%. Such bonds were listed
for trading on July 23, 2021. The abbreviation and code of the bonds were “21 Huatai S5” and “163892.SH”,
respectively, and the amount of the bonds permitted to be listed for trading came to RMB3.0 billion with the
trading ended on July 18, 2022.
On August 5, 2021, the Company publicly issued the 2021 short-term Corporate Bonds of Huatai Securities
(Fourth Tranche) to professional investors. The amount of the said bonds came to RMB4.0 billion at an issue
price of RMB100 per bond, carrying a 186-day fixed rate with a coupon rate of 2.55%. Such bonds were listed
for trading on August 13, 2021. The abbreviation and code of the bonds were “21 Huatai S6” and “188548.SH”,
respectively, and the amount of the bonds permitted to be listed for trading came to RMB4.0 billion with the
trading ended on February 10, 2022.
On August 12, 2021, the Company publicly issued the 2021 short-term Corporate Bonds of Huatai Securities
(Fifth Tranche) to professional investors. The amount of the said bonds came to RMB4.0 billion at an issue
price of RMB100 per bond, carrying a 157-day fixed rate with a coupon rate of 2.51%. Such bonds were listed
for trading on August 20, 2021. The abbreviation and code of the bonds were “21 Huatai S7” and “188591.SH”,
respectively, and the amount of the bonds permitted to be listed for trading came to RMB4.0 billion with the
trading ended on January 19, 2022.
On August 24, 2021, the Company publicly issued the 2021 short-term Corporate Bonds of Huatai Securities
(Sixth Tranche) to professional investors. The amount of the said bonds came to RMB3.0 billion at an issue
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price of RMB100 per bond, carrying a 75-day fixed rate with a coupon rate of 2.40%. Such bonds were listed
for trading on August 31, 2021. The abbreviation and code of the bonds were “21 Huatai S8” and “188658.SH”,
respectively, and the amount of the bonds permitted to be listed for trading came to RMB3.0 billion with
the trading ended on November 8, 2021, and the principal together with the interest was repaid during the
Reporting Period.
On December 2, 2021, the Company publicly issued the 2021 short-term Corporate Bonds of Huatai Securities
(Seventh Tranche) to professional investors. The amount of the said bonds came to RMB5.0 billion at an
issue price of RMB100 per bond, carrying 184-day and 354-day fixed rates. The amount of the 184-day bonds
came to RMB2.3 billion with a coupon rate of 2.64%, while the amount of the 354-day bonds came to RMB2.7
billion with a coupon rate of 2.70%. Such bonds were listed for trading on December 10, 2021. The abbreviation
and code of the 184-day bonds were “21 Huatai S9” and “185092.SH”, respectively, and the amount of the
bonds permitted to be listed for trading came to RMB2.3 billion with the trading ended on June 7, 2022; the
abbreviation and code of the 354-day bonds were “21 Hua S10” and “185101.SH”, respectively, and the amount
of the bonds permitted to be listed for trading came to RMB2.7 billion with the trading ended on November
24, 2022.
On December 9, 2021, the Company publicly issued the 2021 short-term Corporate Bonds of Huatai Securities
(Eighth Tranche) to professional investors. The amount of the said bonds came to RMB2.0 billion at an issue
price of RMB100 per bond, carrying a 151-day fixed rate with a coupon rate of 2.62%. Such bonds were listed
for trading on December 17, 2021. The abbreviation and code of the bonds were “21 Hua S11” and “185135.SH”,
respectively, and the amount of the bonds permitted to be listed for trading came to RMB2.0 billion with the
trading ended on May 12, 2022.
On December 17, 2021, the Company publicly issued the 2021 short-term Corporate Bonds of Huatai
Securities (Ninth Tranche) to professional investors. The amount of the said bonds came to RMB5.0 billion at
an issue price of RMB100 per bond, carrying 274-day and 365-day fixed rates. The amount of the 274-day
bonds came to RMB1.0 billion with a coupon rate of 2.70%, while the amount of the 365-day bonds came
to RMB4.0 billion with a coupon rate of 2.75%. Such bonds were listed for trading on December 27, 2021. The
abbreviation and code of the 274-day bonds were “21 Hua S12” and “185162.SH”, respectively, and the amount
of the bonds permitted to be listed for trading came to RMB1.0 billion with the trading ended on September
20, 2022; the abbreviation and code of the 365-day bonds were “21 Hua S13” and “185158.SH”, respectively,
and the amount of the bonds permitted to be listed for trading came to RMB4.0 billion with the trading
ended on December 20, 2022.
On December 27, 2021, the Company publicly issued the 2021 short-term Corporate Bonds of Huatai
Securities (Tenth Tranche) to professional investors. The amount of the said bonds came to RMB4.0 billion
at an issue price of RMB100 per bond, carrying a 335-day fixed rate with a coupon rate of 2.75%. Such bonds
were listed for trading on January 5, 2022. The abbreviation and code of the bonds were “21 Hua S14” and
“185188.SH”, respectively, and the amount of the bonds permitted to be listed for trading came to RMB4.0
billion with the trading ended on November 28, 2022.
3. Subordinated bonds
On January 27, 2021, the Company publicly issued the 2021 subordinated bonds of Huatai Securities (First
Tranche) to professional investors. The amount of the said bonds came to RMB9.0 billion at an issue price
of RMB100 per bond, carrying a 5-year fixed rate with a coupon rate of 4.50%. Such bonds were listed for
trading on February 4, 2021. The abbreviation and code of the bonds were “21 Huatai C1” and “175721.SH”,
respectively, and the amount of the bonds permitted to be listed for trading came to RMB9.0 billion with the
trading ended on January 28, 2026.
4. Perpetual subordinated bonds
On September 15, 2021, the Company publicly issued the 2021 perpetual subordinated bonds of Huatai
Securities (First Tranche) to professional investors. The amount of the said bonds came to RMB3.0 billion at
an issue price of RMB100 per bond, with a coupon rate of 3.85% and an interest rate repriced every 5 years
for which interest is accruable. Such bonds were listed for trading on September 28, 2021. The abbreviation
HUATAI SECURITIES
214
and code of the bonds were “21 Huatai Y1” and “188785.SH”, respectively, and the amount of the bonds
permitted to be listed for trading came to RMB3.0 billion with the trading ended on September 16, 2026.
On October 26, 2021, the Company publicly issued the 2021 perpetual subordinated bonds of Huatai
Securities (Second Tranche) to professional investors. The amount of the said bonds came to RMB5.0 billion
at an issue price of RMB100 per bond, with a coupon rate of 4.00% and an interest rate repriced every 5 years
for which interest is accruable. Such bonds were listed for trading on November 3, 2021. The abbreviation
and code of the bonds were “21 Huatai Y2” and “188942.SH”, respectively, and the amount of the bonds
permitted to be listed for trading came to RMB5.0 billion with the trading ended on October 27, 2026.
On November 16, 2021, the Company publicly issued the 2021 perpetual subordinated bonds of Huatai
Securities (Third Tranche) to professional investors. The amount of the said bonds came to RMB2.0 billion at
an issue price of RMB100 per bond, with a coupon rate of 3.80% and an interest rate repriced every 5 years
for which interest is accruable. Such bonds were listed for trading on November 24, 2021. The abbreviation
and code of the bonds were “21 Huatai Y3” and “185019.SH”, respectively, and the amount of the bonds
permitted to be listed for trading came to RMB2.0 billion with the trading ended on November 17, 2026.
5. Short-term debt instruments
On January 21, 2021, the Company issued the 2021 first tranche of short-term debt instruments of RMB3.0
billion for a duration of 90 days, at a coupon rate of 2.48%. The debt instruments (“21 Huatai CP001”, code:
072100013.IB) were listed on January 26, 2021 and the amount approved for trading was RMB3.0 billion. The
trading was terminated on April 23, 2021, and the principal together with the interest was repaid during the
Reporting Period.
On January 25, 2021, the Company issued the 2021 second tranche of short-term debt instruments of RMB3.0
billion for a duration of 90 days, at a coupon rate of 2.42%. The debt instruments (“21 Huatai CP002”, code:
072100017.IB) were listed on January 28, 2021 and the amount approved for trading was RMB3.0 billion. The
trading was terminated on April 26, 2021, and the principal together with the interest was repaid during the
Reporting Period.
On March 5, 2021, the Company issued the 2021 third tranche of short-term debt instruments of RMB3.0
billion for a duration of 90 days, at a coupon rate of 2.68%. The debt instruments (“21 Huatai CP003”, code:
072100039.IB) were listed on March 10, 2021 and the amount approved for trading was RMB3.0 billion. The
trading was terminated on June 4, 2021, and the principal together with the interest was repaid during the
Reporting Period.
On June 23, 2021, the Company issued the 2021 fourth tranche of short-term debt instruments of RMB4.0
billion for a duration of 90 days, at a coupon rate of 2.40%. The debt instruments (“21 Huatai CP004”, code:
072100109.IB) were listed on June 28, 2021 and the amount approved for trading was RMB4.0 billion. The
trading was terminated on September 22, 2021, and the principal together with the interest was repaid
during the Reporting Period.
On July 13, 2021, the Company issued the 2021 fifth tranche of short-term debt instruments of RMB4.0 billion
for a duration of 90 days, at a coupon rate of 2.15%. The debt instruments (“21 Huatai CP005”, code: 072100118.
IB) were listed on July 16, 2021 and the amount approved for trading was RMB4.0 billion. The trading was
terminated on October 12, 2021, and the principal together with the interest was repaid during the Reporting
Period.
On July 20, 2021, the Company issued the 2021 sixth tranche of short-term debt instruments of RMB3.0 billion
for a duration of 90 days, at a coupon rate of 2.15%. The debt instruments (“21 Huatai CP006”, code: 072100131.
IB) were listed on July 23, 2021 and the amount approved for trading was RMB3.0 billion. The trading was
terminated on October 19, 2021, and the principal together with the interest was repaid during the Reporting
Period.
6. Offshore bonds
During the Reporting Period, in order to supplement its working capital, Pioneer Reward Limited, a subsidiary
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of Huatai International, completed the issuance of USD bonds with fixed rates of USD1.4 billion, of which
the amount of the 3-year bonds came to USD0.9 billion, while the amount of the 5-year bonds came to
USD0.5 billion. The listing place is the Hong Kong Stock Exchange. The Company provided unconditional and
irrevocable guarantee for the bonds under the issuance.
During the Reporting Period, in order to supplement its working capital and repay its debt financing
instruments, Huatai International Finance Limited, a subsidiary of Huatai International, issued the medium-
term notes of approximately USD522 million in aggregate. Huatai International provided unconditional and
irrevocable guarantee for the medium term note programme.
7. Structured notes
During the Reporting Period, the Company cumulatively issued 3,879 structured notes, with a total amount of
RMB66.233 billion. As of the end of the Reporting Period, the Company had 872 structured notes in duration
period, with an amount of RMB15.363 billion.
(II)Changes in total number of the shares and shareholding structure of the
Company and changes in structure of assets and liabilities of the Company
Please refer to “I. Changes in Share Capital” in this section for the details of changes in total number of the
shares and shareholding structure of the Company.
Please refer to “(II) Analysis of key items of consolidated statement of financial position” under “VI. Major
Operations during the Reporting Period” in “Management Discussion and Analysis and Report of the Board”
of this report for the details of changes in structure of assets and liabilities of the Company.
Among the total number of shareholders of ordinary shares as of the end of the Reporting Period,
shareholders of A Shares came to 276,691 and registered shareholders of H Shares came to 7,349. Among
the total number of shareholders of ordinary shares as of the end of last month (February 28, 2022) prior
to the date on which the annual report shall be disclosed, shareholders of A Shares came to 266,597 and
registered shareholders of H Shares came to 7,318.
III. INFORMATION OF SHAREHOLDERS AND DE FACTO CONTROLLERS
(I) Total number of shareholders
Total number of shareholders of ordinary shares as of the end of the Reporting
Period
284,040
Total number of shareholders of ordinary shares as of the end of last month prior to
the date on which the annual report shall be disclosed
273,915
Total number of shareholders of preferred shares whose rights have been restored
as of the end of the Reporting Period
–
Total number of shareholders of preferred shares whose voting rights have been
restored as of the end of last month prior to the date on which the annual report
shall be disclosed
–
HUATAI SECURITIES
216
(II) Shareholding of top ten shareholders and top ten holders of tradable shares (or
holders of shares not subject to selling restrictions) as of the end of the Reporting
Period
Shareholding of top ten shareholders
Name of shareholder
(in full name)
Increase/
decrease
during the
Reporting
Period
Number of
shares held as
at the end of
the Reporting
Period
Percentage
(%)
Number of
shares held
subject
to selling
restrictions
Pledged, marked or
frozen shares
Nature of
shareholder
Statusof
shares
Number of
shares
HKSCC Nominees
Limited
-152,827,800 1,418,260,727 15.6254 – Nil –
Foreign legal
person
Jiangsu Guoxin
Investment Group
Limited
24,248,200 1,373,481,636 15.1320 – Nil –
State-owned
legal person
Jiangsu
Communications
Holding Co., Ltd.
5,000,000 489,065,418 5.3882 – Nil –
State-owned
legal person
Govtor Capital
Group Co., Ltd.
– 356,233,206 3.9247 – Nil –
State-owned
legal person
Alibaba (China)
Technology Co., Ltd.
– 268,199,233 2.9548 – Nil –
Domestic
non-state-
owned legal
person
Hong Kong
Securities Clearing
Company Limited
-43,927,874 231,491,774 2.5504 – Nil –
Foreign legal
person
Jiangsu SOHO
Holdings Group Co.,
Ltd.
33,139,245 186,544,699 2.0552 – Nil –
State-owned
legal person
China Securities
Finance
Corporation Limited
-93,814,073 152,906,738 1.6846 – Nil – Unknown
Jiangsu Hiteker
High-tech Co., Ltd.
– 123,169,146 1.3570 – Unknown 123,169,146
Domestic
non-state-
owned legal
person
China Construction
Bank Corporation
– Guotai CSI All
Share Securities
Company Trading
Index Securities
Investment Open-
ended Fund
-26,183,787 100,280,374 1.1048 – Nil – Unknown
Unit: Shares
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Operating Analysis
and Strategies
ANNUAL REPORT 2021
Shareholding of top ten holders of shares not subject to selling restrictions
Name of shareholder
Number of tradable
shares not subject to
selling restrictions
Class and number of shares
Class Number
HKSCC Nominees Limited 1,418,260,727 Overseas listed foreign shares 1,418,260,727
Jiangsu Guoxin Investment
Group Limited
1,373,481,636
Ordinary shares in RMB 1,271,072,836
Overseas listed foreign shares 102,408,800
Jiangsu Communications
Holding Co., Ltd.
489,065,418
Ordinary shares in RMB 452,065,418
Overseas listed foreign shares 37,000,000
Govtor Capital Group Co., Ltd. 356,233,206
Ordinary shares in RMB 342,028,006
Overseas listed foreign shares 14,205,200
Alibaba (China) Technology Co.,
Ltd.
268,199,233 Ordinary shares in RMB 268,199,233
Hong Kong Securities Clearing
Company Limited
231,491,774 Ordinary shares in RMB 231,491,774
Jiangsu SOHO Holdings Group
Co., Ltd.
186,544,699
Ordinary shares in RMB 42,829,299
Overseas listed foreign shares 143,715,400
China Securities Finance
Corporation Limited
152,906,738 Ordinary shares in RMB 152,906,738
Jiangsu Hiteker High-tech Co.,
Ltd.
123,169,146 Ordinary shares in RMB 123,169,146
China Construction Bank
Corporation – Guotai CSI All
Share Securities Company
Trading Index Securities
Investment Open-ended Fund
100,280,374 Ordinary shares in RMB 100,280,374
Description of special
repurchase accounts for the top
ten shareholders
There are no special repurchase accounts for the top ten shareholders.
Description of the voting
rights entrusted by the above
shareholders, the voting rights
the above shareholders are
entrusted with and the voting
rights the above shareholders
abstained from
There are no voting rights entrusted by the above shareholders, the
voting rights the above shareholders are entrusted with and the voting
rights the above shareholders abstained from.
Description of the related party
relationships or acting in concert
among the above shareholders
Guoxin Group, Communications Holding, Govtor Capital and Jiangsu
SOHO Holdings Group Co., Ltd. are wholly owned by Jiangsu SASAC.
Apart from the above, the Company is not aware of any related party
relationship among other shareholders or whether such shareholders
are parties acting in concert as specified in the Regulations on the
Takeover of Listed Companies.
Explanation of shareholders of
preferred shares with restored
voting rights and the number of
shares held by them
There are no shareholders of preferred shares of the Company.
Notes:
1. The class of shareholders of ordinary shares in RMB (A Shares) represents the class of accounts held by them registered with Shanghai Branch
of China Securities Depository and Clearing Corporation Limited.
HUATAI SECURITIES
218
2. Among the holders of overseas listed foreign shares (H Shares) of the Company, shares of non-registered shareholders are held by HKSCC
Nominees Limited on their behalf. As of the end of the Reporting Period, Guoxin Group, Communications Holding, Govtor Capital and Jiangsu
SOHO Holdings Group Co., Ltd. acquired, via Southbound Trading, 102,408,800, 37,000,000, 14,205,200 and 143,715,400 H Shares of the Company,
respectively, which are also being held by HKSCC Nominees Limited. These shares are specifically and separately listed at the time of disclosure
of this report; should such shares be included, the actual number of shares held by HKSCC Nominees Limited on their behalf would have been
1,715,590,127, representing 18.90% of the Company’s total shares.
3. Hong Kong Securities Clearing Company Limited is the nominal holder of the A Shares of the Company held by the investors in Northbound
Trading under Shanghai-Hong Kong Stock Connect.
4. Citibank, National Association is the depositary of the Company’s GDRs, and the domestic underlying A Shares represented by the GDRs
are legally registered under its name. According to the statistics provided by the depositary, the Company had a total of 169,885 GDRs in the
duration period as of the end of the Reporting Period, accounting for 0.21% of the approved number for issuance by the CSRC.
Number of shares held by top ten holders of shares subject to selling restrictions and relevant selling
restrictions
Note: The above shares subject to selling restrictions represent the shares granted by the Company to the incentive participants due to the
implementation of incentive scheme of restricted A Shares. Details of listing and trading of shares subject to selling restrictions and selling
restrictions are available in the Incentive Scheme of Restricted A Shares disclosed by the Company on the website of the Shanghai Stock
Exchange on February 9, 2021.
(III) A strategic investor or common legal person who became one of the top ten
shareholders as a result of subscription for new shares allotted to them
During the Reporting Period, the Company did not have any strategic investor or common legal person who
became one of the top ten shareholders as a result of subscription for new shares allotted to them.
No.
Name of holders of
shares subject to
selling restrictions
Number
of shares
held subject
to selling
restrictions
Listing and trading of shares
subject to selling restrictions
Selling restrictions
Permitted time for
listing and trading
Number of additional
shares permitted to
be listed and traded
1 Zhou Yi 720,000 See note for details –
See note for
details
2 Han Zhencong 600,000 See note for details –
See note for
details
3 Li Shiqian 600,000 See note for details –
See note for
details
4 Sun Hanlin 600,000 See note for details –
See note for
details
5 Jiang Jian 600,000 See note for details –
See note for
details
6 Zhang Hui 600,000 See note for details –
See note for
details
7 Chen Tianxiang 600,000 See note for details –
See note for
details
8 Jiao Xiaoning 500,000 See note for details –
See note for
details
9 Jiao Kai 500,000 See note for details –
See note for
details
10 Wang Chong 500,000 See note for details –
See note for
details
Description of the related party
relationships or acting in concert
among the above shareholders
The Company is not aware of any related party relationship or
acting in concert arrangement.
Unit: Shares
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ANNUAL REPORT 2021
IV. CONTROLLING SHAREHOLDERS AND DE FACTO CONTROLLERS
(I) Controlling Shareholders
There are no controlling shareholders with more than 50% shareholding of the Company.
(II) De facto controllers
Name
State-owned Assets Supervision and Administration
Commission of Jiangsu Provincial Government
Person in charge or legal representative Xie Zhengyi
1. Legal Person
2. Framework of the ownership and controlling relationship between the Company and the de
facto Controllers
3. De facto controllers did not control the Company through trust or other asset management
programs
State-owned Assets Supervision and Administration Commission of Jiangsu Provincial Government
Huatai Securities Co.,Ltd.
Jiangsu Guoxin Investment Group Limited
100%
100%
100%
100%
100%
73.20%
10.51%
2.0552%
3.9247%
5.3882%
15.1320%
0.2424%
0.3169%
0.0408%
25.42%
1.0487%
100%
100%
Jiangsu Communications Holding Co.,Ltd.
Jiangsu Coast Development Group Co.,Ltd.
Govtor Capital Group Co.,Ltd.
Jiangsu Overseas Group Co.,Ltd.
Jiangsu SOHO
Holdings Group
Co.,Ltd.
Jiangsu SOHO International Group Corp.
Other provincial
enterprises
Jiangsu Credit Re-guarantee Group Co.,Ltd.
HUATAI SECURITIES
220
VI. OTHER LEGAL-PERSON SHAREHOLDERS WITH MORE THAN 10%
SHAREHOLDING
V. DURING THE REPORTING PERIOD, THERE WERE NO CIRCUMSTANCES
WHERE THE CUMULATIVE NUMBER OF SHARES PLEDGED BY THE
CONTROLLING SHAREHOLDERS OR THE LARGEST SHAREHOLDER AND
PERSONS ACTING IN CONCERT WITH THEM ACCOUNTED FOR MORE
THAN 80% OF THE COMPANY’S SHARES HELD BY THEM
VII. THE COMPANY HAD NO RESTRICTIONS ON SHAREHOLDING
REDUCTION
Unit: 100 million Yuan Currency: RMB
Name of
legal-person
shareholder
Person in
charge or legal
representative
of the unit
Date of
establishment Organization code
Registered
capital
Main businesses or
management activities
Jiangsu
Guoxin
Investment
Group Limited
Xie Zhengyi 2002-02-22 91320000735724800G 300
Investment, management,
operation, transfer of state-
owned capital; enterprise
trusteeship, assets restructuring,
management consultation, house
leasing and other businesses
upon approval.
Remarks
Shares held by HKSCC Nominees Limited are owned by the non-registered holders of H
Shares.
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ANNUAL REPORT 2021
VIII. SPECIFIC IMPLEMENTATION OF SHARE REPURCHASE IN THE
REPORTING PERIOD
Name of share repurchase
plan
Repurchase of A Shares through Centralized Price Bidding
Date of share repurchase
plan disclosed
2020-03-31
Number of shares to
be repurchased and
percentage to the total share
capital (%)
The lower limit of shares to be repurchased is 45,383,250 and the upper
limit is 90,766,500. The percentage to the total share capital is 0.5%-1%.
Amount to be repurchased Not exceeding RMB2.615 billion.
Period to be repurchased
The period of the share repurchase shall be no more than 12 months from
the date when the Board of the Company considers and approves the
repurchase plan of A shares. The repurchase term shall expire in advance
in the event that one of the following conditions occurs: 1. If, during the
repurchase period, the number of shares repurchased or the funds used
for the repurchase reached the cap, the repurchase plan would be fully
implemented and the repurchase period would expire in advance from that
date. 2. If the Board of the Company decided to terminate the repurchase
plan, the repurchase period would expire in advance from the date when
the Board made the termination decision.
Purpose of repurchase
Intended to be used for the source of stocks for the restricted stock
incentive plan.
Shares repurchased
On January 8, 2021, the Company repurchased 2,675,500 A Shares on
the Shanghai Stock Exchange. The maximum repurchase price was
RMB18.48 per share, the lowest repurchase price was RMB18.23 per share
and the total amount of funds used was RMB48,959,144.00 (excluding
transaction costs). As of the end of the Reporting Period, the Company has
repurchased 90,766,495 shares (representing 0.9999999% of total shares),
and completed the repurchase on January 8, 2021.
Number of shares
repurchased as a
percentage of the underlying
shares under the stock
incentive plan (%), if any
45,488,000 restricted A shares granted to incentive participants were all
from the A shares repurchased by the Company.
Progress of the Company
to reduce shareholding of
shares repurchased through
centralized price bidding
Not applicable
Unit: Yuan Currency: RMB
Save as disclosed above, the Company or any of its subsidiaries did not repurchase, sell or redeem any
listed securities of the Company and its subsidiaries for the year ended December 31, 2021.
HUATAI SECURITIES
222
No.
Number of
substantial
shareholders Class of shares Nature of interests
Number of shares
held (share)
Percentage of
the total issued
shares of the
Company (%)
Percentage of
the total issued A
Shares/ H Shares
of the Company
(%)
Long position (Note
2)/ short position
(Note 3)/ shares
available for
lending
1
Jiangsu Guoxin
Investment
Group Limited
A Shares
Beneficial owner
(Note 1)
1,271,072,836 14.00 17.28 Long position
H Shares
(Southbound
Trading)
Beneficial owner
(Note 1)
102,408,800 1.13 5.96 Long position
2
Jiangsu
Communications
Holding Co., Ltd.
A Shares
Beneficial owner
(Note 1)
452,065,418 4.98 6.14 Long position
H Shares
(Southbound
Trading)
Beneficial owner
(Note 1)
37,000,000 0.41 2.15 Long position
3
Jiangsu SOHO
Holdings Group
Co., Ltd.
A Shares
Beneficial owner
(Note 1)
42,829,299 0.47 0.58 Long position
Interests of
controlled
corporations (Note 1)
46,755,432 0.52 0.64 Long position
H Shares
(Southbound
Trading)
Beneficial owner
(Note 1)
143,715,400 1.58 8.36 Long position
Interests of
controlled
corporations (Note 1)
48,428,200 0.53 2.82 Long position
4 Citigroup Inc.
H Shares
Interests of
controlled
corporations,
approved lending
agent (Note 1)
87,668,671 0.97 5.09 Long position
H Shares
Interests of
controlled
corporations (Note 1)
306,400 0.003 0.01 Short position
H Shares
Approved lending
agent (Note 1)
86,524,060 0.95 5.03
Shares available
for lending
IX. SUBSTANTIAL SHAREHOLDERS’ AND OTHER PERSONS’ INTERESTS
AND SHORT POSITIONS IN SHARES AND UNDERLYING SHARES
As of December 31, 2021, as far as the Company and the Directors are aware after having made all
reasonable enquiries, the following persons (other than the Directors, Supervisors or chief executives of the
Company) held interests or short positions in shares or underlying shares which shall be disclosed to the
Company under the provisions of Divisions 2 and 3 of Part XV of the SFO and were recorded in the register
required to be kept by the Company under Section 336 of the SFO:
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Note 1: According to the information disclosed on the websites of HKEX (www.hkex.com.hk) and China Securities Depository and Clearing
Corporation Limited (www.chinaclear.cn). Under Section 336 of the SFO, forms disclosing interests shall be submitted by shareholders of the
Company upon satisfaction of certain conditions. Changes of shareholders’ shareholdings in the Company are not required to inform the
Company and the Hong Kong Stock Exchange unless certain conditions are satisfied. Therefore, there could be differences between substantial
shareholders’ latest shareholdings in the Company and the shareholding information reported to the Hong Kong Stock Exchange.
Jiangsu SOHO Holdings Group Co., Ltd. directly held a long position in 42,829,299 A Shares and 143,715,400 H Shares of the Company, and, through
its controlled corporation (namely Jiangsu SOHO International Group Corp. (
江蘇蘇豪國際集團股份有限公司
)), indirectly held a long position in
46,755,432 A Shares and 48,428,200 H Shares of the Company.
Citigroup Inc., through a series of its controlled corporations, indirectly held a long position in 87,668,671 H Shares of the Company, of which
86,524,060 H Shares were held in the capacity of approved lending agent, and a short position in 306,400 H Shares of the Company
Note 2: A shareholder has a [long position] if such shareholder has interests in shares, including interests through holding, writing or issuing
financial instruments (including derivatives), under which such shareholder (i) has a right to purchase the underlying shares; (ii) is under an
obligation to purchase the underlying shares; (iii) has a right to receive payments if the price of the underlying shares increases; or (iv) has a
right to avoid or reduce a loss if the price of the underlying shares increases; and
Note 3: A shareholder has a [short position] if such shareholder borrows shares under a securities borrowing and lending agreement, or
holds, writes or issues financial instruments (including derivatives) under which such shareholder (i) has a right to require another person to
purchase the underlying shares; (ii) is under an obligation to deliver the underlying shares; (iii) has a right to receive payments if the price of the
underlying shares declines; or (iv) has a right to avoid or reduce a loss if the price of the underlying shares declines.
Save as disclosed above, the Company is not aware of any other person (other than the Directors,
Supervisors and chief executives of the Company) having any interests or short positions in the shares or
underlying shares of the Company as at December 31, 2021, which shall be recorded in the register pursuant
to Section 336 of the SFO.
As of the end of the Reporting Period, details on the restricted shares granted to some Directors of the
Company due to the Company’s implementation of the Restricted Share Incentive Scheme of A Shares are
as follows:
Save as disclosed above, as of December 31, 2021, the Company was not aware of any other Directors,
Supervisors or chief executives of the Company having any interests or short positions in the shares,
underlying shares or debentures of the Company or its associated corporations, which shall be notified
to the Company and the Hong Kong Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO
(including interests or short positions which were taken or deemed to have under such provisions of the
SFO) or which would be required, pursuant to section 352 of the SFO, to be recorded in the register of
interests, or which shall, pursuant to the Model Code, be notified to the Company and the Hong Kong Stock
Exchange.
X. DIRECTORS’, SUPERVISORS’ AND CHIEF EXECUTIVES’ INTERESTS
AND SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES OR
DEBENTURES OF THE COMPANY AND ITS ASSOCIATED CORPORATIONS
No. Name Class of shares Nature of interests
Number of shares
held (share)
Percentage of
the total issued
shares of the
Company (%)
Percentage of
the total issued A
Shares/ H Shares
of the Company
(%)
Long position/
short position/
shares available for
lending
1 Zhou Yi A Shares Beneficial owner
720,000 0.008 0.010
Long position
HUATAI SECURITIES
224
During the Reporting Period, the Company had no preferred shares.
Save the incentive plan stated in “XIII. Share Incentive Scheme, Employee Stock Ownership Plan or Other
Employee Incentives Measures and Their Implication” under “Corporate Governance” in this report, at no
time during the Reporting Period has the Company, its holding companies or any of its subsidiaries or fellow
subsidiaries, entered into any arrangements to enable the Directors and Supervisors to acquire benefits by
means of the purchase of shares in, or debentures of, the Company or any other corporate bodies.
XI. INFORMATION ON PREFERENTIAL SHARES
XII. ARRANGEMENT FOR DIRECTORS AND SUPERVISORS TO PURCHASE
SHARES OR DEBENTURES
225
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ANNUAL REPORT 2021
I. ENTERPRISE BONDS, CORPORATE BONDS AND NON-FINANCIAL
CORPORATE DEBT FINANCING INSTRUMENTS
(I) Enterprise Bonds
During the Reporting Period, the Company did not issue any enterprise bonds.
(II) Corporate Bonds
1. Basic information on corporate bonds
Information on corporate bonds of the Company in duration as at the date on which the annual report was
approved to publish is as follows.
Unit: 100 million Yuan Currency: RMB
Name of bond Abbreviation Code Issue date Value date
Expiration
date Balance
Interest
Rate
(%)
Principal and
interest payment
method
2013 Corporate Bonds of
Huatai Securities Co., Ltd.
(Ten-year bonds)
13 Huatai 02 122262.SH 2013-06-05 2013-06-05 2023-06-05 60 5.10
Principal to
be paid upon
expiration and
interest to be
paid annually
2018 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Qualified Investors (First
tranche) (Type II)
18 Huatai G2 155048.SH 2018-11-22 2018-11-26 2023-11-26 10 4.17
Principal to
be paid upon
expiration and
interest to be
paid annually
2019 Corporate Bonds
of Huatai Securities
Co., Ltd. Publicly Issued
to Qualified Investors
(Second tranche) (Type I)
19 Huatai G3 155358.SH 2019-04-18 2019-04-22 2022-04-22 50 3.80
Principal to
be paid upon
expiration and
interest to be
paid annually
HUATAI SECURITIES
226
BONDS
HUATAI SECURITIES
Name of bond Abbreviation Code Issue date Value date
Expiration
date Balance
Interest
Rate
(%)
Principal and
interest payment
method
2020 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Qualified Investors (First
tranche)
20 Huatai G1 163353.SH 2020-03-24
2020-03-26
2023-03-26 80 2.99
Principal to
be paid upon
expiration and
interest to be
paid annually
2020 Corporate Bonds
of Huatai Securities
Co., Ltd. Publicly Issued
to Qualified Investors
(Second tranche)
20 Huatai G3 163482.SH 2020-04-27
2020-04-29
2025-04-29 35 2.90
Principal to
be paid upon
expiration and
interest to be
paid annually
2020 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Qualified Investors (Third
tranche)
20 Huatai G4 163558.SH 2020-05-19 2020-05-21 2025-05-21 30 3.20
Principal to
be paid upon
expiration and
interest to be
paid annually
2020 Corporate Bonds
of Huatai Securities
Co., Ltd. Publicly Issued
to Qualified Investors
(Fourth tranche) (Type II)
20 Huatai G6 163670.SH 2020-06-16 2020-06-18 2023-06-18 32 3.10
Principal to
be paid upon
expiration and
interest to be
paid annually
2020 Subordinated Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(First tranche)
20 Huatai C1 175409.SH 2020-11-11 2020-11-13 2025-11-13 50 4.48
Principal to
be paid upon
expiration and
interest to be
paid annually
2020 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Fifth tranche)
20 Huatai G7 175473.SH 2020-11-20 2020-11-24 2023-11-24 35 3.90
Principal to
be paid upon
expiration and
interest to be
paid annually
2020 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Sixth tranche) (Type I)
20 Huatai G8 175534.SH 2020-12-07 2020-12-09 2022-12-09 40 3.67
Principal to
be paid upon
expiration and
interest to be
paid annually
2020 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Sixth tranche) (Type II)
20 Huatai G9 175535.SH 2020-12-07 2020-12-09 2023-12-09 40 3.79
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(First tranche) (Type I)
21 Huatai G1 175648.SH 2021-01-18 2021-01-20 2024-01-20 40 3.58
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Subordinated Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(First tranche)
21 Huatai C1 175721.SH 2021-01-27 2021-01-29 2026-01-29 90 4.50
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Second tranche)
21 Huatai G3 188047.SH 2021-04-22 2021-04-26 2024-04-26 50 3.42
Principal to
be paid upon
expiration and
interest to be
paid annually
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Name of bond Abbreviation Code Issue date Value date
Expiration
date Balance
Interest
Rate
(%)
Principal and
interest payment
method
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Third tranche)
21 Huatai G4 188106.SH 2021-05-13 2021-05-17 2026-05-17 60 3.71
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Fourth tranche) (Type I)
21 Huatai G5 188134.SH 2021-05-20 2021-05-24 2024-05-24 40 3.28
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Fourth tranche) (Type II)
21 Huatai G6 188140.SH 2021-05-20 2021-05-24 2026-05-24 20 3.63
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Fifth tranche) (Type I)
21 Huatai G7 188239.SH 2021-06-10 2021-06-15 2024-06-15 20 3.40
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Sixth tranche) (Type I)
21 Huatai 09 188282.SH 2021-06-17 2021-06-21 2024-06-21 25 3.45
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Short-term
Corporate Bonds of
Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(First tranche) (Type II)
21 Huatai S2 163883.SH 2021-06-24 2021-06-28 2022-06-28 40 2.95
One-off
payment of
principal and
interest upon
expiration
2021 Short-term Corporate
Bonds of Huatai Securities
Co., Ltd. Publicly Issued
to Professional Investors
(Second tranche) (Type II)
21 Huatai S4 163889.SH 2021-07-07 2021-07-09 2022-07-09 40 2.87
One-off
payment of
principal and
interest upon
expiration
2021 Short-term
Corporate Bonds of
Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Third tranche)
21 Huatai S5 163892.SH 2021-07-15 2021-07-19 2022-07-19 30 2.75
One-off
payment of
principal and
interest upon
expiration
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Seventh tranche) (Type I)
21 Huatai 11 188324.SH 2021-09-03 2021-09-07 2024-09-07 15 3.03
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Seventh tranche) (Type II)
21 Huatai 12 188325.SH 2021-09-03 2021-09-07 2031-09-07 27 3.78
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Perpetual
Subordinated Bonds of
Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(First tranche)
21 Huatai Y1 188785.SH 2021-09-15 2021-09-17 2026-09-17 30 3.85
Principal to
be paid upon
expiration and
interest to be
paid annually
HUATAI SECURITIES
228
Name of bond Abbreviation Code Issue date Value date
Expiration
date Balance
Interest
Rate
(%)
Principal and
interest payment
method
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Eighth tranche) (Type I)
21 Huatai 13 188874.SH 2021-10-14 2021-10-18 2024-10-18 21 3.25
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Eighth tranche) (Type II)
21 Huatai 14 188875.SH 2021-10-14 2021-10-18 2031-10-18 34 3.99
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Ninth tranche) (Type I)
21 Huatai 15 188926.SH 2021-10-21 2021-10-25 2024-10-25 22 3.22
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Ninth tranche) (Type II)
21 Huatai 16 188927.SH 2021-10-21 2021-10-25 2031-10-25 11 3.94
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Perpetual
Subordinated Bonds of
Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Second tranche)
21 Huatai Y2 188942.SH 2021-10-26 2021-10-28 2026-10-28 50 4.00
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Perpetual
Subordinated Bonds of
Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Third tranche)
21 Huatai Y3 185019.SH 2021-11-16 2021-11-18 2026-11-18 20 3.80
Principal to
be paid upon
expiration and
interest to be
paid annually
2021 Short-term Corporate
Bonds of Huatai Securities
Co., Ltd. Publicly Issued
to Professional Investors
(Seventh tranche) (Type I)
21 Huatai S9 185092.SH 2021-12-02 2021-12-06 2022-06-08 23 2.64
One-off
payment of
principal and
interest upon
expiration
2021 Short-term Corporate
Bonds of Huatai Securities
Co., Ltd. Publicly Issued
to Professional Investors
(Seventh tranche) (Type II)
21 Hua S10 185101.SH 2021-12-02 2021-12-06 2022-11-25 27 2.70
One-off
payment of
principal and
interest upon
expiration
2021 Short-term
Corporate Bonds of
Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Eighth tranche)
21 Hua S11 185135.SH 2021-12-09 2021-12-13 2022-05-13 20 2.62
One-off
payment of
principal and
interest upon
expiration
2021 Short-term
Corporate Bonds of
Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Ninth tranche) (Type I)
21 Hua S12 185162.SH 2021-12-17 2021-12-21 2022-09-21 10 2.70
One-off
payment of
principal and
interest upon
expiration
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Name of bond Abbreviation Code Issue date Value date
Expiration
date Balance
Interest
Rate
(%)
Principal and
interest payment
method
2021 Short-term
Corporate Bonds of
Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Ninth tranche) (Type II)
21 Hua S13 185158.SH 2021-12-17 2021-12-21 2022-12-21 40 2.75
One-off
payment of
principal and
interest upon
expiration
2021 Short-term
Corporate Bonds of
Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(Tenth tranche)
21 Hua S14 185188.SH 2021-12-27 2021-12-29 2022-11-29 40 2.75
One-off
payment of
principal and
interest upon
expiration
2022 Perpetual
Subordinated Bonds of
Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(First tranche)
22 Huatai Y1 185337.SH 2022-01-24 2022-01-26 2027-01-26 27 3.49
Principal to
be paid upon
expiration and
interest to be
paid annually
2022 Corporate Bonds
of Huatai Securities Co.,
Ltd. Publicly Issued to
Professional Investors
(First tranche)
22 Huatai G1 185364.SH 2022-02-10 2022-02-14 2025-02-14 50 2.79
Principal to
be paid upon
expiration and
interest to be
paid annually
Note:
1. Arrangements for investors’ appropriateness:
Targets of the issuance are professional investors who hold A share securities accounts of China Securities Depository and Clearing Corporation
Limited, Shanghai Branch and are in compliance with the requirements of the Administrative Measures for Issuance and Trading of Corporate
Bonds, the Administrative Measures of the Shanghai Stock Exchange for Eligibility of Investors in the Bond Market (
《上海證券交易所債券市場投資
者適當性管理辦法》
), the Administrative Measures for the Eligibility of the Investors of Securities and Future (
《證券期貨投資者適當性管理辦法》
) and
relevant laws and regulations (excluding purchasers subject to prohibition under laws and regulations). Investors shall not subscribe by illegal
use of others’ accounts or fund accounts, or illegally financing or financing for others. Investors subscribing for this tranche of bonds shall
observe relevant laws and regulations and relevant provisions of the CSRC and assume corresponding legal responsibilities on their own.
2. The above corporate bonds are listed on the Shanghai Stock Exchange, which can be traded by bidding, quotation, enquiry and agreement,
and there is no risk of termination of listing and trading.
3. During the Reporting Period, the Company had no overdue bonds.
2. Interest Payment for Bonds during the Reporting Period
Name of bond Redemption and interest payment
16 Huatai G2 Redemption in full as scheduled
16 Huatai G4 Redemption in full as scheduled
18 Huatai G1 Redemption in full as scheduled
20 Huatai G5 Redemption in full as scheduled
20 Huatai S1 Redemption in full as scheduled
20 Huatai S2 Redemption in full as scheduled
20 Huatai S3 Redemption in full as scheduled
20 Huatai S4 Redemption in full as scheduled
21 Huatai S8 Redemption in full as scheduled
13 Huatai 02 Payment of interest in full as scheduled
18 Huatai G2 Payment of interest in full as scheduled
HUATAI SECURITIES
230
3. During the Reporting Period, there were no triggers and execution of issuer’s or investor’s
option clauses or investor protection clauses
4. Intermediary Agency to Provide Services for Bond Issuance and Existing Business
Other intermediary agencies to provide services for the above bond issuance and existing business as blow:
Name of bond Redemption and interest payment
19 Huatai G1 Payment of interest in full as scheduled
19 Huatai G3 Payment of interest in full as scheduled
20 Huatai G1 Payment of interest in full as scheduled
20 Huatai G3 Payment of interest in full as scheduled
20 Huatai G4 Payment of interest in full as scheduled
20 Huatai G6 Payment of interest in full as scheduled
20 Huatai C1 Payment of interest in full as scheduled
20 Huatai G7 Payment of interest in full as scheduled
20 Huatai G8 Payment of interest in full as scheduled
20 Huatai G9 Payment of interest in full as scheduled
Name of
intermediary
agency Office address
Name of signatory
accountant Contact person Contact number
KPMG Huazhen LLP
8/F, KPMG Tower,
Oriental Plaza, No.
1 East Chang’an
Avenue, Beijing
Wang Guobei,
Cheng Hailiang,
Zhang Nan, Qian
Ruwen, Zou Jun
Zhang Nan 021-22123075
Intermediary
agency Name Office address
Lead Underwriter
Huatai United Securities Co., Ltd.
5/F, Building 1, Huatai Securities Square, No. 228
Middle Jiangdong Road, Nanjing
GF Securities Co., Ltd.
37/F, Taikang Insurance Tower, No. 429 North
Nanquan Road, Pudong New Area, Shanghai
Shenwan Hongyuan Securities
Co., Ltd. (Note)
45/F, No. 989 Changle Road, Xuhui District,
Shanghai,
China International Capital
Corporation Limited
China World Office, No. 1 Jianguomenwai Avenue,
Beijing
China Development Bank
Securities Company Limited
1-9/F, No. 29 Fuchengmen Wai Avenue, Xicheng
District, Beijing
China Industrial Securities Co.,
Ltd.
( 興業證券股份有限公司 )
Room 601-605, North Zone, No. 35 Jinshifang
Street, Xicheng District, Beijing
Kaiyuan Securities Co., Ltd.
( 開源
證券股份有限公司 )
5/F, Block B, City Gate, No. 1 Jinye Road, Gaoxin
District, Xi’an, Shaanxi Province
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ANNUAL REPORT 2021
Intermediary
agency Name Office address
Entrusted manager
of bonds
GF Securities Co., Ltd.
37/F, Taikang Insurance Tower, No. 429 North
Nanquan Road, Pudong New Area, Shanghai
Shenwan Hongyuan Securities
Co., Ltd.
45/F, No. 989 Changle Road, Xuhui District,
Shanghai
China International Capital
Corporation Limited
China World Office, No. 1 Jianguomenwai Avenue,
Beijing
Credit rating
agencies
China Lianhe Credit Rating Co.,
Ltd.
17/F, Tower 2, No. 2 Jianguomenwai Avenue,
Chaoyang District, Beijing
Shanghai Brilliance Credit Rating
& Investors Service Co., Ltd.
14/F, Huasheng Mansion, No. 398 Hankou Road,
Shanghai
Law Firm
Zhong Lun Law Firm
28, 31, 33, 36, 37/F, SK Tower, 6A Jianguomenwai
Avenue, Chaoyang District, Beijing
AllBright Law Offices
11/12/F, Shanghai Tower, No. 501 Middle Yincheng
Road, Pudong New Area, Shanghai
King & Wood Mallesons
17-18/F, East Tower, World Financial Center 1, No.
1 Middle East 3rd Ring Road, Chaoyang District,
Beijing
Note:
1. During the Reporting Period, there was no change in the intermediary agencies.
2. Certain bond issuances were underwritten by Shenwan Hongyuan Financing Services Co., Ltd. (hereinafter referred to as “Shenwan Hongyuan
Financing Services”), a subsidiary of Shenwan Hongyuan Securities Co., Ltd. (hereinafter referred to as “Securities Parent Company”). Due to
changes in the business scope of Securities Parent Company, bond underwriting business, except for convertible bonds, of Shenwan Hongyuan
Financing Services was included into the business scope of Securities Parent Company. For the above changes in business scope, relevant
authorities had issued approval. Therefore, the rights and obligations under the agreement entered into by Shenwan Hongyuan Financing
Services have succeeded to by Securities Parent Company.
5. Utilisation of funds raised as at the end of the Reporting Period
As at the end of the Reporting Period, the utilisation of funds raised from bonds in duration of the Company
is as follows:
Unit: 100 million Yuan Currency: RMB
Name of bond
Total amount
of funds raised
Utilised
amount Unutilised amount
Whether conform to the
purpose, utilisation plan
and other agreements
as undertaken in the
prospectus
13 Huatai 02 60.00 60.00 – Yes
18 Huatai G2 10.00 10.00 – Yes
19 Huatai G1 70.00 70.00 – Yes
19 Huatai G3 50.00 50.00 – Yes
20 Huatai G1 80.00 80.00 – Yes
20 Huatai G3
35.00 35.00
– Yes
20 Huatai G4
30.00 30.00
– Yes
HUATAI SECURITIES
232
Name of bond
Total amount
of funds raised
Utilised
amount Unutilised amount
Whether conform to the
purpose, utilisation plan
and other agreements
as undertaken in the
prospectus
20 Huatai G6
32.00 32.00
– Yes
20 Huatai C1
50.00 50.00
– Yes
20 Huatai G7
35.00 35.00
– Yes
20 Huatai G8
40.00 40.00
– Yes
20 Huatai G9
40.00 40.00
– Yes
21 Huatai G1
40.00 40.00
– Yes
21 Huatai C1
90.00 90.00
– Yes
21 Huatai G3
50.00 50.00
– Yes
21 Huatai G4
60.00 60.00
– Yes
21 Huatai G5
40.00 40.00
– Yes
21 Huatai G6
20.00 20.00
– Yes
21 Huatai G7
20.00 20.00
– Yes
21 Huatai 09
25.00 25.00
– Yes
21 Huatai S2
40.00 40.00
– Yes
21 Huatai S3
20.00 20.00
– Yes
21 Huatai S4
40.00 40.00
– Yes
21 Huatai S5
30.00 30.00
– Yes
21 Huatai S6
40.00 40.00
– Yes
21 Huatai S7
40.00 40.00
– Yes
21 Huatai 11
15.00 15.00
– Yes
21 Huatai 12
27.00 27.00
– Yes
21 Huatai Y1
30.00 30.00
– Yes
21 Huatai 13
21.00 21.00
– Yes
21 Huatai 14
34.00 34.00
– Yes
21 Huatai 15 22.00 22.00 – Yes
21 Huatai 16 11.00 11.00 – Yes
21 Huatai Y2 50.00 50.00 – Yes
21 Huatai Y3 20.00 20.00 – Yes
21 Huatai S9 23.00 23.00 – Yes
21 Hua S10 27.00 27.00 – Yes
21 Hua S11 20.00 20.00 – Yes
21 Hua S12 10.00 10.00 – Yes
21 Hua S13 40.00 40.00 – Yes
21 Hua S14 40.00 40.00 – Yes
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According to the requirements of the Administrative Measures for Issuance and Trading of Corporate Bonds,
in order to ensure that the utilisation of funds raised is consistent with the prospectus and to guarantee
the legal rights of bondholders, the Company has set up a special account for the utilisation of funds
raised in supervisory banks, which is subject to the supervision of the supervisory banks. As of the end of
the Reporting Period, the funds raised from the above-mentioned corporate bonds have been fully utilised,
which is consistent with the prospectus, and there is no violation regarding its utilisation.
6. During the Reporting Period, the rating agencies did not make any adjustments to the
ratings.
7. Implementation and Changes of Guarantees, Settlement Plan and other Settlement
Safeguards and their Impact during the Reporting Period
(III) Non-financial corporate debt financing instruments in the inter-bank bond
market
During the Reporting Period, the Company did not issue any non-financial corporate debt financing
instruments in the inter-bank bond market.
(IV) During the Reporting Period, the Company did not record a loss in the
consolidated statements exceeding 10% of the net assets at the end of the previous
year
(V) Interest-bearing Debt (other than bonds) overdue at the end of the Reporting
Period
The Company enjoyed a good reputation, and repaid matured debts and paid interests on time without any
overdue debts during the Reporting Period.
(VI) The Impacts of Non-compliance in Laws and Regulations, the Articles of
Association, the Management Measures for Information Disclosure and Violation of
Relevant Covenants or Undertakings in the Prospectus for Bonds on the Interests of
Bond Investors during the Reporting Period
During the Reporting Period, the Company complied with laws and regulations, the Articles of Association
and the Management Measures for Information Disclosure, strictly performed its obligations of information
disclosure and paid the interest for the bonds on time to protect the legal interest of investors. In addition,
the Company strictly performed the relevant covenants or undertakings in the prospectus for corporate
Current status Implementation
Any
change
The existing corporate bonds of the Company are issued
unsecured and performed the settlement plan in accordance
with the covenants in the prospectus for corporate bonds.
According to the covenants in the prospectus for corporate
bonds, the Company has settlement safeguards in place,
including but are not limited to formulating the Rules
for Meeting of Bondholders, entrusting bond manager,
establishing a special working group for the settlement,
strictly performing the obligations of information disclosure
and setting up a special debt repayment account.
The Company strictly
performed the covenants in
the prospectus in relation to
the settlement plan, paid the
interest for the corporate bonds
on time, and disclosed relevant
information on the Company in
a timely manner to protect the
legal interest of investors.
No
HUATAI SECURITIES
234
bonds, and the usage of the proceeds was in line with the covenants in the prospectus. During the Reporting
Period, the Company did not default on the redemption and interest payment of issued bonds, and
operated stably with satisfactory earnings and there is no risk of the Company failing to make payments on
time in the future.
(VII) Accounting Data and Financial Indicators of the Company for the Past Two
Years Up to the end of the Reporting Period
Note: Customer’s funds are not included in the above indicators.
Unit: Thousand Yuan Currency: RMB
Primary indicators 2021 2020
Year-on-year change
(%)
Reason for
change
Net profit after non-recurring
profit or loss
13,191,627.76 10,619,159.69 24.22
Mainly due to
the decrease
in net cash
flow from
operating
activities
Current ratio 1.41 1.38 2.17
Quick ratio 1.41 1.38 2.17
Gearing ratio (%) 76.93 77.20
Decrease of 0.27
percentage point
EBITDA to total debt ratio (%) 7.54 7.25
Increase of 0.29
percentage point
Times interest earned
2.58 2.72
(5.15)
Times cash-interest earned
(5.28) (0.54)
N/A
Times interest earned of EBITDA 2.71 2.90 (6.55)
Loan repayment ratio (%) 100 100
Interest payment ratio (%) 100 100
II. THE COMPANY HAD NO CONVERTIBLE CORPORATE BONDS
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238
HUATAI SECURITIES
Independent auditor's report
To the shareholders of Huatai Securities Co., Ltd.
(A joint stock company incorporated in the People’s Republic of China with limited liability)
Opinion
We have audited the consolidated financial statements of Huatai Securities Co., Ltd. (the “Company”) and its subsidiaries (the
“Group”) set out on pages 247 to 389, which comprise the consolidated statement of financial position as at 31 December
2021, the consolidated statement of profit or loss, the consolidated statement of profit or loss and other comprehensive
income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then
ended and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the
Group as at 31 December 2021 and of its consolidated financial performance and its consolidated cash flows for the year
then ended in accordance with International Financial Reporting Standards (“IFRSs”) issued by the International Accounting
Standards Board (“IASB”) and have been properly prepared in compliance with the disclosure requirements of the Hong
Kong Companies Ordinance.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards)
(“IESBA Code”) together with any ethical requirements that are relevant to our audit of the consolidated financial
statements in the People’s Republic of China, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
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Assessing the fair value of financial instruments
Refer to Note 61 to the consolidated financial statements and the accounting policies in Note 2(8).
The Key Audit Matter How the matter was addressed in our audit
The valuation of the Group’s financial instruments is based on a combination
of market data and valuation models which often require a considerable
number of inputs.
Many of these inputs are obtained from readily available data for liquid
markets. Where such observable data is not readily available, as in the case
of certain level 2 and level 3 financial instruments, estimates need to be
developed which can involve significant management judgement.
We identified assessing the fair value of financial instruments as a key audit
matter because of the degree of complexity involved in valuing certain
financial instruments and because of the significant degree of judgement
exercised by management in determining the inputs used in the valuation
models.
Our audit procedures to assess the fair value of financial instruments included
the following:
• assessing the design, implementation and operating effectiveness of
key internal controls over the valuation, independent price verification and
valuation model approval for financial instruments;
• assessing the fair values of all financial instruments traded in active markets
by comparing the fair values applied by the Group with publicly available
market data;
• reading investment agreements entered into during the current year, for a
sample of level 2 and level 3 financial instruments to understand the relevant
investment terms and identify any conditions that were relevant to the
valuation of financial instruments;
• engaging our internal valuation specialists to assist us in evaluating the
valuation models used by the Group to value certain level 2 and level 3
financial instruments and to perform, on a sample basis, independent
valuations of level 2 and level 3 financial instruments and compare these
valuations with the Group’s valuations. This included comparing the Group’s
valuation models with our knowledge of current market practice, testing
inputs to the fair value calculations and establishing our own valuation
models to perform revaluations;
• assessing whether the disclosures in the consolidated financial statements
reflected the Group’s exposure to financial instrument valuation risk with
reference to the requirements of the prevailing accounting standards.
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Loss allowances of financial assets measured at amortised cost
Refer to Note 14 to the consolidated financial statements and the accounting policies in Note 2(8).
The Key Audit Matter How the matter was addressed in our audit
The determination of loss allowances using the expected credit loss model
is subject to a number of key parameters and assumptions, including the
identification of loss stages, estimates of probability of default, loss given
default, exposures at default and discount rate, adjustments for forward-
looking information and other adjustment factors. Management judgment
is involved in the selection of those parameters and the application of the
assumptions.
In particular, the determination of the loss allowances is heavily dependent
on the external macro environment and the Group’s internal credit risk
management strategy. The expected credit losses for financial assets
measured at amortised cost are derived from estimates whereby
management takes into consideration historical overdue data, the historical
loss experience and other adjustment factors.
Management also exercises judgement in determining the quantum of loss
given default based on a range of factors. These include available remedies
for recovery, the financial situation of the borrower, the recoverable amount
of collateral, the seniority of the claim and the existence and cooperativeness
of other creditors. When listed stocks are involved as collateral, the loan
balances to collateral ratio and the stock holding concentration of the
borrower, the industry sector and the operation of the issuer, and the liquidity,
restriction on sales and price volatility of the stock will also be taken into
account in the judgement.
Our audit procedures to assess loss allowances of financial assets measured
at amortised cost included the following:
• understanding and assessing the design, implementation and operating
effectiveness of key internal controls of financial reporting over the approval,
recording and monitoring of financial assets measured at amortised cost, the
credit grading process and the measurement of loss allowances;
• with the assistance of our internal specialists, assessing the reliability
of the expected credit loss model used by management in determining
loss allowances, including assessing the appropriateness of the key
parameters and assumptions in the expected credit loss model, including the
identification of loss stages, probability of default, loss given default, exposure
at default, discount rate, adjustments for forward-looking information and
other management adjustments;
• assessing the completeness and accuracy of data used for the key
parameters in the expected credit loss model. For key parameters derived
from internal data relating to original agreements, we compared the total
balance of the financial asset list used by management to assess the
allowances for impairment with the general ledger, selecting samples and
comparing investment information with the underlying agreements and other
related documentation to assess the accuracy of compilation of the asset
list. For key parameters derived from external data, we selected samples to
inspect the accuracy of such data by comparing them with public resources;
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Loss allowances of financial assets measured at amortised cost (continued)
Refer to Note 14 to the consolidated financial statements and the accounting policies in Note 2(8).
The Key Audit Matter How the matter was addressed in our audit
We identified loss allowances of financial assets measured at amortised cost
as a key audit matter because of the inherent uncertainty and management
judgment involved and because of its significance to the financial results and
capital of the Group.
• for key parameters involving judgement, critically assessing input
parameters by seeking evidence from external sources and comparing to
the Group’s internal records. We compared the economic factors used in the
models with market information to assess whether they were aligned with
market and economic development;
• evaluating the validity of management’s assessment on whether the credit
risk of the financial assets has, or has not, increased significantly since initial
recognition and whether the financial assets is credit-impaired by selecting
risk-based samples. On a sample basis, we checked the financial assets
overdue information, understanding the credit situation and the collateral to
loan ratio of the borrowers, the industry sector and the operation of the stock
issuer, and the liquidity, restriction on sales and price volatility of the stock;
• for selected samples of the financial assets measured at amortised cost
that are credit-impaired, evaluating management’s assessment of the value
of the collateral held. We also evaluated the forecast cash flows, challenged
the viability of the Group’s recovery plans and evaluated other credit
enhancements that are integral to the contract terms;
• recalculating the amount of credit loss allowance for 12 month and life
time credit losses using the expected credit loss model based on the above
parameters and assumptions for a sample of financial assets measured at
amortised cost where the credit risk has not, or has, increased significantly
since initial recognition, respectively;
• evaluating whether the disclosures on impairment of financial assets
measured at amortised cost meet the disclosure requirements of prevailing
accounting standards.
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Consolidation of structured entities
Refer to Note 56 to the consolidated financial statements and the accounting policies in Note 2(29)(vi).
The Key Audit Matter How the matter was addressed in our audit
Structured entities are generally created to achieve a narrow and well
defined objective with restrictions around their ongoing activities. The Group
may acquire or retain an ownership interest in, or act as a sponsor of, a
structured entity through issuing or acquiring an asset management scheme,
a wealth management product, an investment fund, a trust scheme or an
asset-backed security.
In determining whether a structured entity is required to be consolidated by
the Group, management is required to consider the power the Group is able
to exercise over the activities of the entity and its exposure to and ability to
influence its own returns from the entity. In certain circumstances the Group
may be required to consolidate a structured entity even though it has no
equity interest therein.
The factors which management needs to consider when determining
whether a structured entity should be consolidated or not are not purely
quantitative and need to be considered collectively.
Our audit procedures to assess the consolidation of structured entities
included the following:
• making enquiries of management and inspecting relevant documents used
by management relating to the judgement process over whether a structured
entity is consolidated or not to assess whether the Group has a robust
process in this regard;
• selecting a sample of structured entities for each key product type and
performing the following procedures for each item selected:
- inspecting the related contracts and internal documents to understand the
purpose of the establishment of the structured entity and the involvement the
Group has with the structured entity and to assess management’s judgement
over whether the Group has the ability to exercise power over the structured
entity;
- evaluating the risk and reward structure of the structured entity including
any capital or return guarantee, commission paid and distribution of the
returns to assess management’s judgement as to exposure, or rights, to
variable returns from the Group’s involvement in such an entity;
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Consolidation of structured entities (continued)
Refer to Note 56 to the consolidated financial statements and the accounting policies in Note 2(29)(vi).
The Key Audit Matter How the matter was addressed in our audit
We identified the consolidation of structured entities as a key audit matter
because it involves significant management judgement in determining
whether a structured entity is required to be consolidated by the Group or
not and because the impact of consolidating a structured entity on the
consolidated statement of financial position could be significant.
• selecting a sample of structured entities for each key product type and
performing the following procedures for each item selected (continued):
- evaluating management’s analysis of the structured entity including
qualitative analysis and calculations of the magnitude and variability
associated with its economic interests in the structured entity to assess
management’s judgement over the Group’s ability to influence its own returns
from the structured entity;
- evaluating management’s judgement over whether the structured entity
should be consolidated or not;
• assessing the disclosures in the consolidated financial statements in relation
to structured entities with reference to the requirements of the prevailing
accounting standards.
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Information other than the consolidated financial statements and auditor’s report thereon
The directors are responsible for the other information. The other information comprises all the information included in the
annual report, other than the consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the consolidated financial statements
The directors are responsible for the preparation of the consolidated financial statements that give a true and fair view
in accordance with IFRSs issued by the IASB and the disclosure requirements of the Hong Kong Companies Ordinance
and for such internal control as the directors determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
The directors are assisted by the Audit Committee in discharging their responsibilities for overseeing the Group’s financial
reporting process.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
This report is made solely to you, as a body, and for no other purpose. We do not assume responsibility towards or accept
liability to any other person for the contents of this report.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.
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Auditor’s responsibilities for the audit of the consolidated financial statements (continued)
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or
the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures,
and whether the consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair presentation..
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision
and performance of the group audit. We remain solely responsible for our audit opinion.
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Auditor’s responsibilities for the audit of the consolidated financial statements (continued)
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence and, where applicable actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance
in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
KPMG Huazhen LLP
Certified Public Accountants
8th Floor, KPMG Tower
Oriental Plaza
1 East Chang An Avenue
Beijing
China
30 March 2022
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Consolidated statement of profit or loss
For the year ended 31 December 2021
ANNUAL FINANCIAL REPORT
The notes on pages 259 to 389 form part of these financial statements.
(Expressed in thousands of Renminbi, unless otherwise stated)
Year ended 31 December
Note
2021
2020
Revenue
Fee and commission income 4
Interest income 5
Net investment gains 6
Total revenue 48,337,773
Other income and gains 7
Total revenue and other income 51,926,404
Fee and commission expenses 8
(5,652,709 )
(4,849,322 )
Interest expenses 9
(10,990,375 )
(8,358,703 )
Staff costs 10
(11,357,194 )
(10,403,649 )
Depreciation and amortisation expenses 11
(1,432,645 )
(1,341,384 )
Tax and surcharges 12
(239,895 )
(209,157 )
Other operating expenses 13
(8,062,817 )
(4,765,630 )
Net provision for impairment loss on financial assets 14
(548,188 )
(1,306,208 )
Net reversal of impairment loss on other assets
Total expenses
(38,283,823 )
(31,233,707 )
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Consolidated statement of profit or loss (continued)
For the year ended 31 December 2021
(Expressed in thousands of Renminbi, unless otherwise stated)
The notes on pages 259 to 389 form part of these financial statements. Details of dividends payable to equity shareholders
of attributable to the profit for the year are set out in Note 54(k).
Year ended 31 December
Note
2021
2020
Operating profit 13,642,581
Share of profit of associates and joint ventures
Profit before income tax 16,272,562
Income tax expense 15
(2,671,669 )
(2,633,930 )
Profit for the year 13,600,893
Attributable to:
Shareholders of the Company
Non-controlling interests
Basic earnings per share
(in Renminbi per share)
19
Diluted earnings per share
(in Renminbi per share)
19
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Consolidated statement of profit or loss
and other comprehensive income
For the year ended 31 December 2021
(Expressed in thousands of Renminbi, unless otherwise stated)
The notes on pages 259 to 389 form part of these financial statements.
Year ended 31 December
Note
2021
2020
Profit for the year 13,600,893
Other comprehensive income for the year
Items that will not be reclassified to profit or loss:
Equity investment at fair value through other
comprehensive income
- Net change in fair value
(504,393 )
Income tax impact
(58,771 )
Items that may be reclassified subsequently to
profit or loss:
Net gain from debt investment at fair
value through other comprehensive income
(49,215 )
Reserve from cash flow hedging instruments
(34,348 )
Share of other comprehensive income of
associates and joint ventures
(55,583 )
Exchange differences on translation of financial
statements in foreign currencies
(263,031 )
(717,314 )
Income tax impact
(3,896 )
Total other comprehensive income for the year, net of tax
18
(626,084 )
(539,317 )
Total comprehensive income for the year 12,974,809
Attributable to:
Shareholders of the Company
Non-controlling interests
(71,314 )
Total 12,974,809
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Consolidated statement of financial position
As at 31 December 2021
(Expressed in thousands of Renminbi, unless otherwise stated)
As at 31 December
Note
2021
2020
Non-current assets
Property and equipment 20
Investment properties 21
Goodwill 22
Land-use rights and other intangible assets 23
Interest in associates 25
Interest in joint ventures 26
Debt investment at amortised cost 27
Financial assets at fair value through other
comprehensive income
28
Financial assets at fair value through profit or loss 30
Refundable deposits 31
Deferred tax assets 32
Other non-current assets 33
Total non-current assets 103,898,290
Current assets
Accounts receivable 34
Other receivables and prepayments 35
Margin accounts receivable 36
Debt investment at amortised cost 27
Financial assets held under resale agreements 29
Financial assets at fair value through profit or loss 30
Financial assets at fair value through other
comprehensive income
28
Derivative financial assets 37
Clearing settlement funds 38
Cash held on behalf of brokerage clients 39
Cash and bank balances 40
Total current assets 702,752,543
Total assets 806,650,833
The notes on pages 259 to 389 form part of these financial statements.
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Consolidated statement of financial position
As at 31 December 2021 (continued)
(Expressed in thousands of Renminbi, unless otherwise stated)
As at 31 December
Note
2021
2020
Current liabilities
Short-term bank loans 42
Short-term debt instruments issued 43
Placements from other financial institutions 44
Accounts payable to brokerage clients 45
Employee benefits payable 46
Other payables and accruals 47
Contract liabilities 48
Current tax liabilities
Financial assets sold under repurchase agreements 49
Financial liabilities at fair value through profit or loss 50
Derivative financial liabilities 37
Long-term bonds due within one year 51
Total current liabilities 542,515,859
Net current assets 160,236,684
Total assets less current liabilities 264,134,974
Non-current liabilities
Long-term bonds 52
Long-term bank loans 53
Non-current employee benefits payable 46
Deferred tax liabilities 32
Financial liabilities at fair value through profit or loss 50
Other payables and accruals 47
Total non-current liabilities 112,099,190
Net assets 152,035,784
The notes on pages 259 to 389 form part of these financial statements.
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Consolidated statement of financial position
As at 31 December 2021 (continued)
(Expressed in thousands of Renminbi, unless otherwise stated)
As at 31 December
Note
2021
2020
Equity
Share capital 54
Other equity instruments 54
Treasury shares 54
(1,231,547 )
(1,626,546 )
Reserves 54
Retained profits 54
Total equity attributable to
shareholders of the Company
Non-controlling interests
Total equity 152,035,784
Approved and authorised for issue by the board of directors on 30 March 2022.
Zhang Wei Zhou Yi
Chairman of the Board,Director Director,Chief Executive Officer,Chairman of the Executive Committee
The notes on pages 259 to 389 form part of these financial statements.
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The notes on pages 259 to 389 form part of these financial statements.
Consolidated statement of changes in equity
For the year ended 31 December 2021
(Expressed in thousands of Renminbi, unless otherwise stated)
Attributable to shareholders of the Company
Reserves
Share
capital
Other equity
instruments
Treasury
shares
Capital
reserve
Surplus
reserve
General
reserve
Fair value
reserve
Cash flow
hedges
reserve
Translation
reserve
Retained
profits Total
Non-
controlling
interests
Total
equity
(Note 54)
(Note 54) (Note 54) (Note 54)
(Note 54)
(Note 54) (Note 54) (Note 37) (Note 54) (Note 54)
As at 1 January 2021 9,076,650 - (1,626,546 ) 70,750,052 5,711,067 15,792,946 605,917 (34,348 ) (202,856 ) 28,998,618 129,071,500 3,240,535 132,312,035
Changes in equity for 2021
Profit for the year
Other comprehensive income
Total comprehensive income
Issue of perpetual bonds
Equity-settled share-based
payments
Capital injection by non-
controlling shareholders
Acquisition of treasury shares
Appropriation to surplus reserve
Appropriation to general reserve
Dividends declared for the year
Other comprehensive income
that has been reclassified to
retained profits
Others
As at 31 December 2021 9,076,650 9,996,425 (1,231,547 ) 70,562,359 6,569,922 18,106,044 223,143 (14,184 ) (425,781 ) 35,559,779 148,422,810 3,612,974 152,035,784
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Consolidated statement of changes in equity
For the year ended 31 December 2021 (continued)
(Expressed in thousands of Renminbi, unless otherwise stated)
The notes on pages 259 to 389 form part of these financial statements.
Attributable to shareholders of the Company
Reserves
Share capital
Treasury
shares
Capital
reserve
Surplus
reserve
General
reserve
Fair value
reserve
Cash flow
hedges reserve
Translation
reserve
Retained
profits Total
Non-
controlling
interests
Total
equity
(Note 54)
(Note 54) (Note 54) (Note 54)
(Note 54)
(Note 54) (Note 37) (Note 54) (Note 54)
As at 1 January 2020
Changes in equity for 2020
Profit for the year - - - - - - - - 10,822,497 10,822,497 47,949 10,870,446
Other comprehensive income - - - - - 212,345 (34,348 ) (598,051 ) - (420,054 ) (119,263 ) (539,317 )
Total comprehensive income - - - - - 212,345 (34,348 ) (598,051 ) 10,822,497 10,402,443 (71,314 ) 10,331,129
Equity-settled share-based
payments
Acquisition of treasury shares - (1,626,546 ) - - - - - - - (1,626,546 ) - (1,626,546 )
Appropriation to surplus reserve - - - 592,376 - - - - (592,376 ) - - -
Appropriation to general reserve - - - - 1,708,519 - - - (1,708,519 ) - - -
Dividends declared for the year - - - - - - - - (2,701,395 ) (2,701,395 ) - (2,701,395 )
Others - - 5 - - - - - - 5 - 5
As at 31 December 2020
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Consolidated statement of cash flows
For the year ended 31 December 2021
(Expressed in thousands of Renminbi, unless otherwise stated)
Year ended 31 December
Note
2021
2020
Cash flows from operating activities:
Profit before income tax
Adjustments for:
Interest expenses
Share of profit of associates and joint ventures
(2,629,981 )
(4,203,647 )
Depreciation and amortisation expenses
Net provision for impairment loss
Expenses recognised from equity-settled share-based payment
Net gains on disposal of property and
equipment and intangible assets
(296 )
(1,455 )
Foreign exchange losses
Dividend income and interest income from financial
assets through other comprehensive income
and debt investment at amortised cost
(1,883,646 )
(1,125,358 )
Net losses arising from derecognition of financial assets
at fair value through other comprehensive income
Net gains arising from derecognition of debt
investment at amortised cost
(46,269 )
(3,567 )
Unrealised fair value changes in financial instruments
through profit or loss
(4,678,762 )
Unrealised fair value changes in derivatives
(10,147,672 )
Excess of interest in the fair value of investee’s identifiable net
assets over investment costs of associates venture acquired
(60,073 )
Operating cash flows before movements in working capital
The notes on pages 259 to 389 form part of these financial statements.
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Consolidated statement of cash flows
For the year ended 31 December 2021 (continued)
(Expressed in thousands of Renminbi, unless otherwise stated)
Year ended 31 December
Note
2021
2020
Cash flows from operating activities (continued):
Increase in refundable deposits
(2,863,339 )
(12,110,250 )
Increase in margin accounts receivable
(14,814,298 )
(34,923,307 )
Increase in accounts receivable, other
receivables and prepayments
(2,284,276 )
(3,729,127 )
Increase in financial assets held under resale agreements
(1,578,867 )
(444,591 )
Increase in financial instruments at fair value
through profit or loss
(59,417,653 )
(30,161,539 )
Decrease in restricted bank deposits
Increase in cash held on behalf of brokerage clients
(18,973,439 )
(41,567,511 )
Increase in accounts payable to brokerage clients
Increase in other payables and accruals
Increase in employee benefits payable and
other non-current liabilities
(Decrease) / increase in financial assets sold
under repurchase agreements
(9,189,967 )
Increase / (decrease) in placements from
other financial institutions
(6,536,368 )
Cash used in from operations
(56,918,466 )
(7,995,139 )
Income taxes paid
(2,894,184 )
(1,961,778 )
Interest paid
(5,524,444 )
(3,912,007 )
Net cash used in operating activities
(65,337,094 )
(13,868,924 )
The notes on pages 259 to 389 form part of these financial statements.
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Consolidated statement of cash flows
For the year ended 31 December 2021 (continued)
(Expressed in thousands of Renminbi, unless otherwise stated)
Year ended 31 December
Note
2021
2020
Cash flows from investing activities:
Proceeds on disposal of property and equipment
Dividends received from associates
Dividend income and interest income from
financial assets through other
comprehensive income and debt investment
at amortised cost
Net losses arising from derecognition of
financial assets at fair value through other
comprehensive income
(100,557 )
(10,601 )
Net gains arising from derecognition of debt
investment at amortised cost
Purchases of property and equipment,
investment properties, land-use rights and other
intangible assets and other non-current assets
(2,953,175 )
(1,007,100 )
Cash paid for acquisition of a subsidiary, net
of cash and bank balances acquired
(803,430 )
(117,832 )
Acquisition of interests in associates, joint
ventures and other investments
(412,745 )
(1,730,752 )
Divestments of associates and joint ventures
Purchase of debt investment at amortised cost
(1,997,103 )
(10,693,105 )
Disposal / (purchase) of financial assets at fair value
through other comprehensive income
(3,324,919 )
Net cash used in investing activities
(262,042 )
(13,451,545 )
The notes on pages 259 to 389 form part of these financial statements.
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Consolidated statement of cash flows
For the year ended 31 December 2021 (continued)
(Expressed in thousands of Renminbi, unless otherwise stated)
Year ended 31 December
Note
2021
2020
Cash flows from financing activities:
Proceeds from issuance of short-term debt instruments
Proceeds from issuance of long-term bonds
Proceeds from issuance of perpetual bonds
Proceeds from / (repayment) of long-term bank loans
(371,748 )
(Repayment of) / proceeds from short-term bank loans
(2,795,165 )
Repayment of debt securities issued
(140,777,597 )
(164,042,119 )
Short-term bank loans interest paid
(126,999 )
(28,235 )
Long-term bank loans interest paid
(22,956 )
(38,130 )
Short-term debt instruments interest paid
(827,947 )
(769,501 )
Long-term bonds interest paid
(3,435,757 )
(2,988,523 )
Dividends paid
(3,612,549 )
(2,701,395 )
Payment of lease liabilities
(462,158 )
(420,344 )
Payment of acquisition of treasury shares
(48,964 )
(1,626,546 )
Cash received from Restricted Share Incentive
Scheme of A Shares
Net cash generated from financing activities 41(b)
Net decrease in cash and cash equivalents
(21,393,763 )
(470,399 )
Cash and cash equivalents at the beginning of the year
Effect of foreign exchange rate changes
(351,288 )
(1,081,966 )
Cash and cash equivalents at the end of the year 41(a)
The notes on pages 259 to 389 form part of these financial statements.
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Notes to the Consolidated Financial Statements
For the year ended 31 December 2021
(Expressed in thousands of Renminbi, unless otherwise stated)
1 General information
Bank of China (“PBOC”), and registered with the Administration for Industry and Commerce of Jiangsu Province on 9 April
1991, with a registered capital of RMB10 million. The Company was renamed as Huatai Securities Limited Liability Company
on 21 December 1999 and then renamed as Huatai Securities Co., Ltd. on 7 December 2007 as a result of the conversion into
a joint stock limited liability company .
The Company publicly issued RMB784,561,275 ordinary shares (the “A shares”) in February 2010, and was listed on the
Shanghai Stock Exchange on 26 February 2010.
In June 2015, the Company issued RMB1,562,768,800 H shares, which were listed on the main board of the Stock Exchange of
Hong Kong Limited (the “Hong Kong Stock Exchange”).
In July 2018, the Company issued RMB1,088,731,200 A shares through private placement.
In June 2019, the Company issued 82,515,000 Global Deposits Receipts (the “GDRs”), representing 825,150,000 new A shares,
and was listed on the London Stock Exchange plc (the “London Stock Exchange”).
As at 31 December 2021 , the Company’s registered capital was RMB9,076,650,000 and the Company has a total of
9,076,650,000 issued shares of RMB1 each.
The Company and its subsidiaries (the “Group”) principally engaged in securities brokerage, securities proprietary trading,
securities underwriting and sponsorship, securities investment advisory, asset management, margin financing and
securities lending, agency sale of financial products, intermediary introduction business for the futures companies, agency
sale and custody of securities investment fund, mutual fund management, brokerage of spot contracts for precious metal
such as gold, proprietary trading of spot contract for gold, direct investment business, alternative investment business,
stock option market making, futures brokerage business and other business activities as approved by the China Securities
Regulatory Commission(“the CSRC”).
2 Significant accounting policies
(1) Statement of compliance
These financial statements have been prepared in accordance with all applicable International Financial Reporting
Standards (“IFRSs”), which collective term includes International Accounting Standards and related interpretations
promulgated by the International Accounting Standards Board (the “IASB”) and the disclosure requirements of the Hong
Kong Companies Ordinance. These financial statements also comply with the applicable disclosure provisions of the Rules
Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (“Listing Rules”). A summary of the significant
accounting policies adopted by the Group are set out below.
The IASB has issued a number of new and revised IFRSs that are first effective for the current accounting period of the
Group. Note 2(3) provides information on any change in accounting policies resulting from initial application of these
developments to the extent that they are relevant to the Group for the current and prior accounting periods reflected in
these financial statements. The revised and new accounting standards and interpretations issued but not yet effective for
the accounting period ended 31 December 2021 are set out in Note 64.
(2) Basis of preparation of the financial statements
The financial statements have been prepared on the historical cost basis except that the following assets and liabilities are
measured at their fair value: financial derivatives, non-derivative financial assets and liabilities at fair value through profit
or loss, financial assets at fair value through other comprehensive income. The methods used to measure fair value are
discussed further in Note 2(8).
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HUATAI SECURITIES
The financial statements are presented in Renminbi (“RMB”), which is the functional currency of the Company. All financial
information presented in RMB has been rounded to the nearest thousand, except when otherwise indicated. The Group
translates the financial statements of subsidiaries from their respective functional currencies into the Group’s functional
currency if the subsidiaries’ functional currencies are not the same as that of the Group.
The preparation of financial statements in conformity with IFRSs requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.
Judgments made by management in the application of IFRSs that have significant effect on the financial statements and
major sources of estimation uncertainty are discussed in Note 2(29).
(3) Changes in accounting policies
The Group has applied the following amendments to IFRSs issued by the IASB to these financial statements for the current
accounting period:
• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, Interest Rate Benchmark Reform – Phase 2
• Amendment to IFRS 16, COVID-19-Related Rent Concessions beyond 30 June 2021
A number of other new standards are also effective from 1 January 2021, but they do not have a material effect on the
Group’s financial statements. Impacts of the adoption of the aforementioned amended IFRSs are discussed below:
(i) Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, Interest Rate Benchmark Reform – Phase 2
The amendments provide targeted reliefs from accounting for changes in the basis for determining contractual cash flows
of financial assets, financial liabilities and lease liabilities as modifications, and discontinuing hedge accounting when an
interest rate benchmark is replaced by an alternative benchmark rate as a result of the reform of interbank offered rates.
(ii) Amendment to IFRS 16, COVID-19-Related Rent Concessions
The Group previously applied the practical expedient in IFRS 16 such that as lessee it was not required to assess whether
rent concessions occurring as a direct consequence of the COVID-19 pandemic were lease modifications, if the eligibility
conditions are met. One of these conditions requires the reduction in lease payments affect only payments originally due
on or before a specified time limit. The 2021 amendment extends this time limit from 30 June 2021 to 30 June 2022.
The Group has early adopted the amendment in this financial year. With the extended time limit, certain rent concessions
that were previously ineligible for the practical expedient because of the original time limit, become eligible. Accordingly,
these rent concessions, which were previously accounted for as lease modifications, are now accounted for as negative
variable lease payments, and are recognised in profit or loss in the period in which the event or condition that triggers
those payments occurred.
None of these developments have had a material effect on how the Group’s results and financial position for the current or
prior periods have been prepared or presented. The Group has not applied any new standard or interpretation that is not
yet effective for the current accounting period.
(4) Basis of consolidation
(i) Business combinations
The Group accounts for business combinations using the acquisition method when the acquired set of activities and
assets meets the definition of a business and control is transferred to the Group (see Note 2(4)(ii)). In determining whether
a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired
includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs.
The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired set of
activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross
assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets.
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(ii) Subsidiaries and non-controlling interests
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed, or has rights, to variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. When
assessing whether the Group has power, only substantive rights (held by the Group and other parties) are considered.
An investment in a subsidiary is consolidated into the consolidated financial statements from the date that control
commences until the date that control ceases. Intra-group balances, transactions and cash flows and any unrealised
gains arising from intra-group transactions are eliminated in full in preparing the consolidated financial statements.
Unrealised losses resulting from intra-group transactions are eliminated in the same way as unrealised gains but only to
the extent that there is no evidence of impairment.
Non-controlling interests represent the equity in a subsidiary not attributable directly or indirectly to the Company, and in
respect of which the Group has not agreed any additional terms with the holders of those interests which would result in
the Group as a whole having a contractual obligation in respect of those interests that meet the definition of a financial
liability.
Non-controlling interests are presented in the consolidated statement of financial position within equity, separately from
equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Group are presented
on the face of the consolidated statement of profit or loss and the consolidated statement of profit or loss and other
comprehensive income as an allocation of the total profit or loss and total comprehensive income for the reporting period
between non-controlling interests and the shareholders of the Company.
Changes in the Group’s interests in a subsidiary that do not result in a loss of control are accounted for as equity
transactions, whereby adjustments are made to the amounts of controlling and non-controlling interests within
consolidated equity to reflect the change in relative interests, but no adjustments are made to goodwill and no gain or loss
is recognised.
When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire interest in that subsidiary, with
a resulting gain or loss being recognised in profit or loss. Any interest retained in that former subsidiary at the date when
control is lost is recognised at fair value and this amount is regarded as the fair value on initial recognition of a financial
asset (see Note 2(8)) or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture
(see Note 2(4)(iii)).
In the Company’s statement of financial position, an investment in a subsidiary is stated at cost less impairment losses (see
Note 2(15)), unless the investment is classified as held for sale (or included in a disposal group that is classified as held for
sale).
(iii) Associates and joint ventures
An associate is an entity in which the Group or Company has significant influence, but not control or joint control, over its
management, including participation in the financial and operating policy decisions.
A joint venture is an arrangement whereby the Group or Company and other parties contractually agree to share control of
the arrangement, and have rights to the net assets of the arrangement.
An investment in an associate or a joint venture is accounted for in the consolidated financial statements under the equity
method, unless it is classified as held for sale (or included in a disposal group that is classified as held for sale) or applied
the exemption from the requirement to apply equity accounting method and measured the investment at fair value
through profit or loss. Under the equity method, the investment is initially recorded at cost, adjusted for any excess of the
Group’s share of the acquisition-date fair value of the investee’s identifiable net assets over the cost of the investment (if
any). Thereafter, the investment is adjusted for the post acquisition change in the Group’s share of the investee’s net assets
and any impairment loss relating to the investment (see Note 2(15)). Any acquisition-date excess over cost, the Group’s
share of the post-acquisition, post-tax results of the investees and any impairment losses for the year are recognised
in profit or loss, whereas the Group’s share of the post-acquisition post-tax items of the investees’ other comprehensive
income is recognised in other comprehensive income.
When the Group’s share of losses exceeds its interest in the associate or the joint venture, the Group’s interest is reduced to
nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or constructive
obligations or made payments on behalf of the investee. For this purpose, the Group’s interest is the carrying amount of
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the investment under the equity method together with the Group’s long-term interests that in substance form part of the
Group’s net investment in the associate or the joint venture.
Unrealised profits and losses resulting from transactions between the Group and its associates and joint venture are
eliminated to the extent of the Group’s interest in the investee, except where unrealised losses provide evidence of an
impairment of the asset transferred, in which case they are recognised immediately in profit or loss.
If an investment in an associate becomes an investment in a joint venture or vice versa, retained interest is not remeasured.
Insteadly, the investment continues to be accounted for under the equity method.
When an investment in an associate or a joint venture is held by, or is held indirectly through, an entity that is a venture
capital organisation, or a mutual fund and similar entities, such investment is measured at fair value through profit or loss
in the Group’s consolidated statement of financial position.
In all other cases, when the Group ceases to have significant influence over an associate or joint control over a joint
venture, it is accounted for as a disposal of the entire interest in that investee, with a resulting gain or loss being recognised
in profit or loss. Any interest retained in that former investee at the date when significant influence or joint control is lost is
recognised at fair value and this amount is regarded as the fair value on initial recognition of a financial asset (see Note
2(8)).
In the Company’s statement of financial position, investments in associates and joint venture of the Company are
accounted for using the equity method, unless it is classified as held for sale (or included in a disposal group that is
classified as held for sale) or applied the exemption from the requirement to apply equity accounting method and
measured the investment at fair value through profit or loss.
(5) Goodwill
Goodwill represents the excess of:
(i) the aggregate of the fair value of the consideration transferred, the amount of any non-controlling interest in the
acquiree and the fair value of the Group’s previously held equity interest in the acquiree; over
(ii) the net fair value of the acquiree’s identifiable assets and liabilities measured as at the acquisition date.
When (ii) is greater than (i), then this excess is recognised immediately in profit or loss as a gain on a bargain purchase.
Goodwill is stated at cost less accumulated impairment losses. Goodwill arising on a business combination is allocated to
each cash-generating unit (“CGU”), or groups of CGUs, that is expected to benefit from the synergies of the combination
and is tested annually for impairment (see Note 2(15)).
On disposal of a CGU during the year, any attributable amount of purchased goodwill is included in the calculation of the
profit or loss on disposal.
(6) Foreign currency
When the Group receives capital in foreign currencies from investors, the capital is translated to RMB at the spot exchange
rate on the date of receipt. Other foreign currency transactions are, on initial recognition, translated to RMB at the spot
exchange rates or the rates that approximate the spot exchange rates on the dates of the transactions.
A spot exchange rate is an exchange rate quoted by the PBOC, the State Administrative of Foreign Exchange or a cross rate
determined based on quoted exchange rates. A rate that approximates the spot exchange rate is a rate determined under
a systematic and rational method, normally the average exchange rate of the current period.
Monetary items denominated in foreign currencies are translated to RMB at the spot exchange rate at the end of the
reporting period. The resulting exchange differences are recognised in profit or loss. Non-monetary items denominated
in foreign currencies that are measured at historical cost are translated to RMB using the foreign exchange rate at the
transaction date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated
using the foreign exchange rate at the date the fair value is determined; the resulting exchange differences are recognised in
profit or loss, except for the differences arising from the translation of equity securities investment designated as at fair value
through other comprehensive income (FVOCI) (except on impairment, in which case foreign currency differences that have
been recognised in other comprehensive income are reclassified to profit or loss), which are recognised as OCI in reserve.
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The assets and liabilities of foreign operation are translated to RMB at the spot exchange rate at the end of reporting
period. The equity items, excluding “retained profits”, are translated to RMB at the spot exchange rates at the transaction
dates. The income and expenses of foreign operation are translated to RMB at the spot exchange rates or the rates that
approximate the spot exchange rates at the transaction dates. The resulting translation differences are recognised in other
comprehensive income, and presented in the foreign currency translation reserve (translation reserve) in equity. Upon
disposal of a foreign operation, the cumulative amount of the translation differences recognised in shareholders’ equity
which relates to that foreign operation is transferred to profit or loss in the period in which the disposal occurs.
(7) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits, and short-term, highly liquid investments, which are
readily convertible into known amounts of cash and are subject to insignificant risk of change in value.
(8) Financial instruments
(i) Recognition and initial measurement
Financial instruments are recognised/derecognised on the date the Group commits to purchase/sell the investment.
Financial instruments are initially stated at fair value plus directly attributable transaction costs, except for those
investments measured at fair value through profit or loss (FVTPL) for which transaction costs are recognised directly in
profit or loss. For an explanation of how the Group determines fair value of financial instruments, see Note 2(8)(iv). Financial
instruments are subsequently accounted for as follows, depending on their classification.
(ii) Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for
managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting
period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at
FVTPL:
– it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
– its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
– it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets; and
– its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present
subsequent changes in the investment’s fair value in OCI. This election is made on an investment-by-investment basis.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.
This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset
that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise..
Financial assets – Business model assessment
The Group makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level
because this best reflects the way the business is managed and information is provided to management.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for
this purpose, consistent with the Group’s continuing recognition of the assets.
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Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are
measured at FVTPL.
Financial assets – Assessment whether contractual cash flows are solely payments of principal and interest
For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition.
‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal
amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and
administrative costs), as well as a profit margin.
In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the
contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that
could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this
assessment, the Group considers:
– contingent events that would change the amount or timing of cash flows;
– terms that may adjust the contractual coupon rate, including variable-rate features;
– prepayment and extension features; and
– terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features).
A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount
substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include
reasonable additional compensation for early termination of the contract. Additionally, for a financial asset acquired at
a discount or premium to its contractual paramount, a feature that permits or requires prepayment at an amount that
substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also
include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value
of the prepayment feature is insignificant at initial recognition.
Financial assets – Subsequent measurement and gains and losses
Financial liabilities – Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is
classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL
are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. The fair
value change of a financial liability designated at FVTPL that is attributable to changes of that financial liability’s credit risk
is to be recognised in OCI (without reclassification to profit or loss). Other financial liabilities are subsequently measured at
amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised
in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
(iii) impairment
The Group recognises loss allowances for Expected Credit Losses (ECLs) on:
Financial assets at FVTPL
These assets are subsequently measured at fair value. Net gains and losses, including any interest or
dividend income, are recognised in profit or loss.
Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective interest method. The
amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses
and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit
or loss.
Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the effective
interest method, foreign exchange gains and losses and impairment are recognised in profit or loss.
Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in
OCI are reclassified to profit or loss.
Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised as income in profit or
loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net
gains and losses are recognised in OCI and are never reclassified to profit or loss.
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– financial assets measured at amortised cost;
– debt investments measured at FVOCI; and
– contract assets.
Debt investment at fair value, FVTPL and equity securities designated at FVOCI (non-recycling), are not subject to the ECL
assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash
shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows
that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is
exposed to credit risk.
In measuring ECLs, the Group takes into account reasonable and supportable information that is available without undue
cost or effort. This includes information about past events, current conditions and forecasts of future economic conditions.
ECLs are measured on either of the following bases:
– 12-month ECLs: these are losses that are expected to result from possible default events within the 12 months after the
reporting date; and
– lifetime ECLs: these are losses that are expected to result from all possible default events over the expected lives of the
items to which the ECL model applies.
Loss allowances for accounts receivables and contract assets are always measured at an amount equal to lifetime ECLs.
ECLs on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience,
adjusted for factors that are specific to the debtors and an assessment of both the current and forecast general economic
conditions at the reporting date.
For all other financial instruments, the Group recognises a loss allowance equal to 12-month ECLs unless there has been
a significant increase in credit risk of the financial instrument since initial recognition, in which case the loss allowance is
measured at an amount equal to lifetime ECLs.
The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at
12-month ECLs:
– debt securities that are determined to have low credit risk at the reporting date; and
– other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the
financial instrument) has not increased significantly since initial recognition.
Significant increases in credit risk
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue
cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical
experience and informed credit assessment and including forward-looking information.
In particular, the following information is taken into account when assessing whether credit risk has increased significantly
since initial recognition:
– failure to make payments of principal or interest on their contractually due dates;
– an actual or expected significant deterioration in a financial instrument’s external or internal credit rating (if available);
– an actual or expected significant deterioration in the operating results of the debtor; and
– existing or forecast changes in the technological, market, economic or legal environment that have a significant adverse
effect on the debtor’s ability to meet its obligation to the Group.
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Depending on the nature of the financial instruments, the assessment of a significant increase in credit risk is performed
on either an individual basis or a collective basis. When the assessment is performed on a collective basis, the financial
instruments are grouped based on shared credit risk characteristics, such as past due status and credit risk ratings.
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt securities at FVOCI
are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the
estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
– significant financial difficulty of the borrower or issuer;
– a breach of contract such as a default;
– the restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise;
– it is probable that the borrower will enter bankruptcy or other financial reorganisations; or
– the disappearance of an active market for a security because of financial difficulties.
Presentation of allowance for ECL in the consolidated statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the
assets.
For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in OCI.
Write-off
The gross carrying amount of a financial asset is written-off when the Group has no reasonable expectations of recovering
a financial asset in its entirety or a portion thereof. The Group expects no significant recovery from the amount written-
off. However, financial assets that are written-off could still be subject to enforcement activities in order to comply with the
Group’s procedures for recovery of amounts due.
Subsequent recoveries of an asset that was previously written-off are recognised as a reversal of impairment in profit or
loss in the period in which the recovery occurs.
(iv) Fair value measurement
If there is an active market for a financial asset or financial liability, the quoted market price without adjusting for
transaction costs that may be incurred upon future disposal or settlement is used to establish the fair value of the financial
asset or financial liability. For a financial asset held or a financial liability to be assumed, the quoted price is the current
bid price. For a financial asset to be acquired or a financial liability assumed, the quoted price is the current asking price.
Quoted prices from an active market are prices that are readily and regularly available from an exchange, dealer, broker,
industry group or pricing service agency, and represent actual and regularly occurring market transactions on an arm’s
length basis.
If no active market exists for a financial instrument, a valuation technique is used to establish the fair value. Valuation
techniques include using recent arm’s length market transactions between knowledgeable, willing parties, reference
to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option
pricing models. Where discounted cash flow technique is used, future cash flows are estimated based on management’s
best estimates and the discount rate used is the prevailing market rate applicable for instrument with similar terms and
conditions at the end of the reporting period. Where other pricing models are used, inputs are based on market data at the
end of the reporting period.
In estimating the fair value of a financial asset and financial liability, the Group considers all factors including, but not
limited to, risk-free interest rate, credit risk, foreign exchange rate and market volatility, that are likely to affect the fair value
of the financial asset and financial liability.
The Group obtains market data from the same market where the financial instrument was originated or purchased.
(v) Derecognition of financial assets and financial liabilities
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Financial assets (or a part of a financial asset or group of financial assets) are derecognised when the financial assets
meet one of the following conditions:
– the contractual rights to the cash flows from the financial asset expire; or
– the Group transfers substantially all the risks and rewards of ownership of the financial assets or where substantially all
the risks and rewards of ownership of a financial asset are neither retained nor transferred, the control over that asset is
relinquished.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, but
retains control, the Group continues to recognise the financial asset and relevant liability to the extent of its continuing
involvement in the financial asset.
The financial liability (or part of it) is derecognised only when the underlying present obligation (or part of it) specified in
the contracts is discharged, cancelled or expired. An agreement between the Group and an existing lender to replace the
original financial liability with a new financial liability with substantially different terms, or a substantial modification of the
terms of an existing financial liability is accounted for as an extinguishment of the original financial liability and recognition
of a new financial liability. The difference between the carrying amount of the derecognised financial liability and the
consideration paid is recognised in profit or loss.
(vi) Offsetting
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial
position when the Group has a legally enforceable right to set off the recognised amounts and the transactions are
intended to be settled on a net basis, or by realising the asset and settling the liability simultaneously.
(vii) Equity instruments
An equity instrument is a contract that proves the ownership interest of the residual assets after deducting all liabilities of
the Group. Considerations received from issuance of equity instruments net of transaction costs are recognised in equity.
Considerations and transaction costs paid by the Group for repurchasing its own equity instruments are deducted from
equity.
(viii) Perpetual bonds
At initial recognition, the Group classifies the perpetual bonds issued as financial liabilities or equity instruments based
on their contractual terms and their economic substance after considering the definition of financial liabilities and equity
instruments.
Perpetual bonds issued that should be classified as equity instruments are recognised in equity based on the actual
amount received. Any distribution of dividends or interests during the instruments’ duration is treated as profit appropriation.
When the perpetual bonds are redeemed according to the contractual terms, the redemption price is charged to equity.
(ix) Derivative financial instruments
Derivative financial instruments are recognised at fair value. At the end of each reporting period the fair value is
remeasured. The gain or loss on remeasurement to fair value is recognised immediately in profit or loss, except where
the derivatives qualify for cash flow hedge accounting or hedges of net investment in a foreign operation, in which case
recognition of any resultant gain or loss depends on the nature of the item being hedged.
(x) Hedge accounting
At the inception of a hedging relationship, the Group formally designates the hedge instruments and the hedged items,
and documents the hedging relationship to which the Group wishes to apply hedge accounting and the risk management
objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument,
the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument’s
effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged
risk. Such hedges are expected to meet the hedge effectiveness in achieving offsetting changes in fair value or cash flows
and are assessed on an ongoing basis to analyse the sources of hedge ineffectiveness which are expected to affect
the hedging relationship in remaining hedging period. If a hedging relationship ceases to meet the hedge effectiveness
requirement relating to the hedge ratio, but the risk management objective for that designated hedging relationship
remains the same, the Group would rebalance the hedging relationship.
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The Group designates such hedged items as debt securities issued with floating interest that expose the Group to the risk of
variability of its cash flows.
Certain derivative transactions, while providing effective economic hedges under the Group’s risk management positions,
do not qualify for hedge accounting and are therefore treated as derivatives held for trading with fair value gains or losses
recognised in profit or loss. Hedges which meet the strict criteria for hedge accounting are accounted for in accordance
with the Group’s accounting policy as set out below.
Fair value hedges
Fair value hedges are hedges of the Group’s exposure to changes in the fair value of a recognised asset or liability or
an unrecognised firm commitment, or an identified portion of such an asset, liability or unrecognised firm commitment,
that is attributable to a particular risk and could affect the profit or loss or other comprehensive income. Among them,
the circumstances affecting other comprehensive income are limited to the hedging for the risk exposure from fair value
change of non-trading equity investment designated as at FVOCI. For fair value hedges, the carrying amount of the hedged
item is adjusted for gains and losses attributable to the risk being hedged, the derivative is remeasured at fair value and
the gains and losses from both are taken to profit or loss or other comprehensive income.
For hedged items recorded at amortised cost, the difference between the carrying value of the hedged item and the face
value is amortised over the remaining term of the original hedge using the effective interest rate method.
When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair
value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain
or loss recognised in profit or loss. The changes in the fair value of the hedging instrument are also recognised in profit or
loss.
The Group discontinues fair value hedge accounting when the hedging relationship ceases to meet the qualifying criteria
after taking into account any rebalancing of the hedging relationship, including the hedging instrument has expired or has
been sold, terminated or exercised. If the hedged items are derecognised, the unamortised fair value is recorded in profit or
loss.
Cash flow hedges
Cash flow hedges are hedges of the Group’s exposure to variability in cash flows that is attributable to a particular risk
associated with a recognised asset or liability, a highly probable forecast transaction or a component of any such item,
and could affect profit or loss. For designated and qualifying cash flow hedges, the effective portion of the gain or loss on
the hedging instrument is initially recognised directly in other comprehensive income. The ineffective portion of the gain or
loss on the hedging instrument is recognised immediately in profit or loss.
When the hedged cash flow affects profit or loss, the gain or loss on the hedging instrument recognised directly in other
comprehensive income is recycled in the corresponding income or expense line of the statement of profit or loss. When
the hedging relationship ceases to meet the qualifying criteria after taking into account any rebalancing of the hedging
relationship, including the hedging instrument has expired or has been sold, terminated or exercised, any cumulative gain
or loss existing in other comprehensive income at that time remains in other comprehensive income until the hedged
forecast transaction ultimately occurs. When a forecast transaction is no longer expected to occur, the cumulative gain or
loss that was reported in other comprehensive income is immediately transferred to profit or loss.
Net investment hedges
Net investment hedge is a hedge of the currency risk of a net investment in a foreign institution operation.
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the
hedging instrument relating to the effective portion of the hedge is recognised directly in other comprehensive income; the
gain or loss relating to the ineffective portion is recognised in profit or loss immediately. Gains and losses accumulated in
other comprehensive income are included in profit or loss when the foreign operation is disposed of as part of the gain or
loss on the disposal.
(9) Margin financing and securities lending
Margin financing and securities lending refer to the lending of funds by the Group to customers for purchase of securities,
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or lending of securities by the Group to customers for securities selling, for which the customers provide the Group with
collateral.
The classification, subsequent measurement and impairment of margin financing receivables is based on policies in Note
2(8). Securities lent are not derecognised when the risk and rewards are not transferred, and interest income from margin
financing receivables and securities lent is recognised using the effective interest rate method.
The collateral is not recognised on the statement of financial position, the transfer of the collateral from counterparties is
only reflected on the statement of financial position if the risks and rewards of ownership are also transferred.
Securities trading on behalf of margin financing or securities lending customers are accounted for as securities brokerage
business.
(10) Financial assets held under resale and sold under repurchase agreements
Financial assets held under resale agreements are transactions where the Group acquires financial assets which will
be resold at a predetermined price at a future date under resale agreements. Financial assets sold under repurchase
agreements are transactions where the Group sells financial assets which will be repurchased at a predetermined price at
a future date under repurchase agreements.
The cash advanced or received is recognised as amounts held under resale or sold under repurchase agreements in the
consolidated statement of financial position. Assets held under resale agreements are recorded in memorandum accounts
as off-balance sheet items. Assets sold under repurchase agreements continue to be recognised in the consolidated
statement of financial position.
The difference between the purchase and resale consideration, and that between the sale and repurchase consideration,
is amortised over the period of the respective transaction using the effective interest method and is included in interest
income and interest expenses, respectively.
(11) Investments in subsidiaries
In the Group’s consolidated financial statements, investments in subsidiaries are accounted for in accordance with the
principles described in Note 2(4).
In the Company’s statement of financial position, investments in subsidiaries are accounted for using the cost method. The
investment is stated at cost less impairment loss (Note 2(15)) in the statements of financial position. Except for declared
but not yet distributed cash dividends or profits distribution that have been included in the price or consideration paid
in obtaining the investments, the Group recognises its share of the cash dividends or profit distribution declared by the
investees as investment income.
(12) Property and equipment and construction in progress
(i) Recognition and measurement
Items of property and equipment are measured at cost less accumulated depreciation and any accumulated impairment
losses (see Note 2(15)). Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the following:
– the cost of materials and direct labour;
– any other costs directly attributable to bringing the assets to a working condition for their intended use;
– when the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and
removing the items and restoring the site on which they are located; and
– capitalised borrowing costs.
Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property and equipment have different useful lives, they are accounted for as separate items
(major components) of property and equipment.
Any gain or loss on disposal of an item of property and equipment (calculated as the difference between the net proceeds
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No depreciation is provided in respect of construction in progress. Depreciation methods, useful lives and residual values
are reviewed at each reporting date and adjusted if appropriate.
(13) Investment property
Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in
the ordinary course of business, use in the production or supply of goods or services or for administrative purposes.
Investment property is accounted for using the cost model and stated in the financial statements at cost less accumulated
depreciation, and impairment losses (see Note 2(15)). The cost of investment property, less its estimated residual value and
accumulated impairment losses, is depreciated using the straight-line method over its estimated useful life, unless the
investment property is classified as held for sale.
Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-
constructed investment property includes the cost of materials and direct labour, any other costs directly attributable to
bringing the investment property to a working condition for their intended use and capitalised borrowing costs.
Types of assets
Estimated
useful lives
Estimated
residual values
Depreciation
rates
Buildings 30 - 35 years 3% 2.77% - 3.23%
Motor vehicles 5 - 8 years 3% 12.13% - 19.40%
Electronic equipment 5 years 3% 19.40%
Furniture and fixtures 5 years 3% 19.40%
Estimated
useful lives
Estimated
residual values
Depreciation
rates
Investment property 30 - 35 years 3% 2.77% - 3.23%
from disposal and the carrying amount of the item) is recognised in profit or loss.
Costs of construction in progress are determined based on the actual expenditures incurred which include all necessary
expenditures incurred during the construction period, borrowing costs eligible for capitalisation and other costs incurred to
bring the asset to its intended use.
Items classified as construction in progress are transferred to property and equipment when such assets are ready for their
intended use.
(ii) Subsequent costs
Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the
expenditure will flow to the Group. Ongoing repairs and maintenance are expensed as incurred.
(iii) Depreciation
Items of property and equipment are depreciated from the date they are available for use or, in respect of self-constructed
assets, from the date that the asset is completed and ready for use.
Depreciation is calculated to write-off the cost of items of property and equipment less their estimated residual values
using the straight-line basis over their estimated useful lives.
Depreciation is generally recognised in profit or loss, unless the amount is included in the carrying amount of another asset.
Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that
the Group will obtain ownership by the end of the lease term.
The estimated useful lives for the current and comparative years of significant items of property and equipment are as
follows:
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Types of assets Estimated useful lives
Existing relationships with broker-dealers Indefinite
Enterprise distribution channel customer relationships Indefinite
Land-use rights 40 - 50 years
Trade names 11 - 20 years
Software and others 2 - 20 years
(14) Land-use rights and other intangible assets
Intangible assets are stated at cost less accumulated amortisation (where the estimated useful life is finite) and
impairment loss (see Note 2(15)). For an intangible asset with finite useful life, its cost less impairment loss is amortised on
the straight-line method over its estimated useful life.
The respective amortisation periods for intangible assets are as follows:
An intangible asset is regarded as having an indefinite useful life and is not amortised when there is no foreseeable limit to
the period over which the asset is expected to generate economic benefits for the Group.
(15) Impairment of non-financial assets
The carrying amounts of the following assets are reviewed at each reporting date to determine whether there is any
indication of impairment:
– property and equipment
– construction in progress
– investment property
– right-of-use asset
– land-use rights and other intangible assets
– equity investment in subsidiaries, associates and joint ventures
– goodwill
– leasehold improvements and long-term deferred expenses
If any such indication exists, then the asset's recoverable amount is estimated. Goodwill and indefinite-lived intangible
assets are tested annually for impairment. An impairment loss is recognised if the carrying amount of an asset or CGU
exceeds its recoverable amount.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For impairment
testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that
are largely independent of the cash inflows of other assets or CGUs. Subject to an operating segment ceiling test, CGUs to
which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the
lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is
allocated to groups of CGUs that are expected to benefit from the synergies of the combination.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first
to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying
amounts of the other assets in the CGU (group of CGUs) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the
extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised.
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(16) Contract assets and contract liabilities
A contract asset represents the Group’s right to consideration in exchange for goods or services that the Group has
transferred to a customer that is not yet unconditional. Contract assets are assessed for ECL in accordance with the policy
set out in Note 2(8)(iii) and are reclassified to receivables when the right to the consideration has become unconditional.
A contract liability is recognised when the customer pays consideration before the Group recognises the related revenue.
A contract liability would also be recognised if the Group has an unconditional right to receive consideration before the
Group recognises the related revenue. In such cases, a corresponding receivable would also be recognised.
For a single contract with the customer, either a net contract asset or a net contract liability is presented. For multiple
contracts, contract assets and contract liabilities of unrelated contracts are not presented on a net basis.
When the contract includes a significant financing component, the contract balance includes interest accrued under the
effective interest method.
(17) Employee benefits
(i) Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service
is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing
plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by
the employee, and the obligation can be estimated reliably.
(ii) Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a
separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined
contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which related
services are rendered by employees.
(iii) Other long-term employee benefits
The Group's net obligation in respect of long-term employee benefits other than pension plans is the amount of future
benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted
to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the
reporting date on corporate bonds, which have a credit rating of at least AA from rating agency, that have maturity dates
approximating the terms of the Group's obligations and that are denominated in the currency in which the benefits are
expected to be paid. The calculation is performed using the projected unit credit method. Any actuarial gains and losses
are recognised in profit or loss in the period in which they arise.
(iv) Termination benefits
Termination benefits are recognised as an expense when the Group is demonstrably committed, without realistic possibility
of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide
termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary
redundancies are recognised as an expense if the Group has made an offer of voluntary redundancy, it is probable that
the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12
months after the reporting date, then they are discounted to their present value.
(18) Share-based payments
(i) Accounting treatment of cash-settled share-based payments
Where the Group receives services from employees by incurring a liability to deliver cash or other assets for amounts that
are determined based on the price of shares or other equity instruments, the service received from employees is measured
at the fair value of the liability incurred. If a cash-settled share-based payment do not vest until the completion of services
for a period, or until the achievement of a specified performance condition, the Group recognises costs or expenses as
services are received, with a corresponding increase in liability, at an amount equal to the fair value of the liability based on
the best estimate of the outcome of vesting. Until the liability is settled, the Group will remeasure the fair value of the liability
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at each balance sheet date and at the date of settlement, with changes recongised in profit or loss for the current period.
When the Group receives services and has the obligation to settle the transaction, but the relevant equity instruments are
issued by the Company’s ultimate parent or its subsidiaries outside the Group, the Group classifies the transaction as cash-
settled.
(ii) Accounting treatment of equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for services received from the employees, the
payment is measured at the fair value of the equity instruments granted to the employees at the grant date. If the equity
instruments granted do not vest until the completion of services for a period, or until the achievement of a specified
performance condition, the Group recognises an amount at each balance sheet date during the vesting period based
on the best estimate of the number of equity instruments expected to vest according to the newly obtained subsequent
information of the changes of the number of the employees expected to vest the equity instruments. The Group measures
the services received at the grant-date fair value of the equity instruments and recognises the costs or expenses as the
services are received, with a corresponding increase in capital reserve.
When the Group receives services, but the Group has no obligation to settle the transaction because the relevant equity
instruments are issued by the Company’s ultimate parent or its subsidiaries outside the Group, the Group also classifies the
transaction as equity-settled.
(19) Income tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except
to the extent that it relates to a business combination, or items recognised directly in equity or in OCI.
(i) Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax
payable also includes any tax liability arising from the declaration of dividends.
(ii) Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
– temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss;
– temporary differences related to investments in subsidiaries, associates and jointly controlled entities to the extent that
the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not
reverse in the foreseeable future; and
– taxable temporary differences arising on the initial recognition of goodwill.
The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group expects,
at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. For investment
property that is measured at fair value, the presumption that the carrying amount of the investment property will be
recovered through sale has not been rebutted.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse,
using tax rates enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and
assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities,
but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised
simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the extent
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that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will
be realised.
(iii) Tax exposures
In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions
and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may
involve a series of judgements about future events. New information may become available that causes the Group to
change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax
expense in the period that such a determination is made.
(20) Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a
lease in IFRS 16.
(i) As a lessee
At commencement or on modification of a contract that contains a lease component, the Group allocates the
consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, for the
leases of property the Group has elected not to separate non-lease components and account for the lease and non-lease
components as a single lease component.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is
initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to
the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the
lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the
right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis
as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any,
and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s
incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources
and makes certain adjustments to reflect the terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
– fixed payments, including in-substance fixed payments;
– variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date;
– amounts expected to be payable under a residual value guarantee; and
– the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional
renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a
lease unless the Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a
change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of
the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it
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will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the
right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Group presents right-of-use assets that do not meet the definition of investment property in ‘property and equipment’
and lease liabilities in ‘other payables and accruals’ in the statement of financial position.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and
short-term leases, including IT equipment. The Group recognises the lease payments associated with these leases as an
expense on a straight-line basis over the lease term.
(ii) As a lessor
At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the
contract to each lease component on the basis of their relative stand-alone prices.
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating
lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks
and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then
it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for
the major part of the economic life of the asset.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It
assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not
with reference to the underlying asset.
If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-
lease as an operating lease.
If an arrangement contains lease and non-lease components, then the Group applies IFRS 15 to allocate the consideration
in the contract.
The Group applies the derecognition and impairment requirements in IFRS 9 to the net investment in the lease (see Note
2(15)). The Group further regularly reviews estimated unguaranteed residual values used in calculating the gross investment
in the lease.
The Group recognises lease payments received under operating leases as income on a straight-line basis over the lease
term as part of ‘other income and gains’.
(21) Provisions and contingent liabilities
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions
are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of
the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably,
the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible
obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are
also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.
(22) Fiduciary activities
The Group acts in a fiduciary activity as a manager, a custodian, or an agent for customers. Assets held by the Group and
the related undertakings to return such assets to customers are recorded as off-balance sheet items as the risks and
rewards of the assets reside with customers.
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(23) Revenue recognition
Income is classified by the Group as revenue when it arises from the provision of services in the ordinary course of the
Group’s business.
Revenue is recognised when control over a service is transferred to the customer at the amount of promised consideration
to which the Group is expected to be entitled, excluding those amounts collected on behalf of third parties. Revenue
excludes value added tax or other sales taxes and is after deduction of any trade discounts.
Where the contract contains a variable consideration, the Group estimates the amount of consideration to which it will be
entitled in exchange for transferring the promised services to a customer and includes in the transaction price some or all
of the variable consideration estimated, such that revenue is only recognised to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur.
Where the contract contains a financing component which provides a significant financing benefit to the customer for
more than 12 months, revenue is measured at the present value of the amount receivable, discounted using the discount
rate that would be reflected in a separate financing transaction with the customer, and interest income is accrued
separately under the effective interest method. Where the contract contains a financing component which provides a
significant financing benefit to the Group, revenue recognised under that contract includes the interest expense accreted
on the contract liability under the effective interest method. The Group takes advantage of the practical expedient of IFRS
15 and does not adjust the consideration for any effects of a significant financing component if the period of financing is 12
months or less.
Further details of the Group’s revenue and other income recognition policies are as follows:
(i) Commission income from brokerage business
Brokerage commission income is recognised on a trade date basis when the relevant transactions are executed. Handling
and settlement fee income arising from brokerage business is recognised when the related services are rendered.
(ii) Underwriting and sponsor fees
Underwriting fee is recognised when the Group has fulfilled its obligations under the underwriting contract.
Depending on contract terms, sponsor fees are recognised progressively over time using a method that depicts the
Group’s performance, or at a point in time when the service is completed.
(iii) Advisory fees
Depending on the nature of the advisory services and the contract terms, advisory fees are recognised progressively over
time using a method that depicts the Group’s performance, or at a point in time when the advisory service is completed.
(iv) Asset management fees
Asset management fees include periodic management fees calculated based on assets under management and
performance-based fees. The fees are recognised progressively over time using a method that depicts the Group’s
performance, to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur.
(v) Other income
Other income is recognised on an accrual basis.
(24) Expenses recognition
(i) Commission expenses
Commission expenses relate mainly to transactions, which are recognised as expenses when the services are received.
(ii) Interest expenses
Interest expenses are recognised based on the principal outstanding and at the effective interest rate applicable.
(iii) Other expenses
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Other expenses are recognised on an accrual basis.
(25) Dividend distribution
Dividends or profit distributions proposed in the profit appropriation plan, which will be authorised and declared after the
end of the reporting period, are not recognised as a liability at the end of the reporting period but disclosed in the notes to
the financial statements separately.
(26) Government grants
Government grants are recognised initially as deferred income at fair value when there is reasonable assurance that they
will be received and the Group will comply with the conditions associated with the grant, and are then recognised in profit
or loss as other income on a systematic basis over the useful life of the asset.
Grants that compensate the Group for expenses incurred are recognised in profit or loss as other income on a systematic
basis in the periods in which the expenses are recognised.
(27) Related parties
(i) A person, or a close member of that person’s family, is related to the Group if that person:
(1) has control or joint control over the Group;
(2) has significant influence over the Group; or
(3) is a member of the key management personnel of the Group or the Group’s parent.
(ii) An entity is related to the Group if any of the following conditions applies:
(1) The entity and the Group are members of the same group (which means that each parent, subsidiary and fellow
subsidiary is related to the others).
(2) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of
which the other entity is a member).
(3) Both entities are joint ventures of the same third party.
(4) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
(5) The entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the
Group.
(6) The entity is controlled or jointly controlled by a person identified in (i).
(7) A person identified in (i)(1) has significant influence over the entity or is a member of the key management personnel of
the entity (or of a parent of the entity).
(8) The entity, or any member of a group of which it is a part, provides key management personnel services to the Group or
to the Group’s parent.
Close members of the family of a person are those family members who may be expected to influence, or be influenced
by, that person in their dealings with the entity.
(28) Segment reporting
Reportable segments are identified based on operating segments which are determined based on the structure of the
Group’s internal organisation, management requirements and internal reporting system. An operating segment is a
component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose
financial performance are regularly reviewed by the Group’s management to make decisions about resource to be
allocated to the segment and assess its performance, and for which financial information regarding financial position,
financial performance and cash flows is available.
Two or more operating segments may be aggregated into a single operating segment if the segments have same or
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similar economic characteristics and are similar in respect of the nature of each products and service, the nature of
production processes, the type or class of customers for the products and services, the methods used to distribute the
products or provide the services, and the nature of the regulatory environment.
Inter-segment revenues are measured on the basis of actual transaction price for such transactions for segment reporting,
and segment accounting policies are consistent with those for the consolidated financial statements.
(29) Significant accounting estimates and judgements
The preparation of financial statements requires management to make estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.
(i) Fair value of financial instruments
As indicated in Note 2(8)(i), financial instruments at fair value through profit or loss and financial assets at fair value through
other comprehensive income are measured at fair value at the end of the year and it is usually possible to determine their
fair values within a reasonable range of estimates.
For part of the above financial instruments, quoted market prices are readily available. However, the determination of
fair value for financial assets and liabilities for which there is no observable market price requires the use of valuation
techniques as described in Note 2(8)(iv). For financial instruments that trade infrequently and have little price transparency,
fair value is less objective, and requires varying degrees of judgment depending on liquidity, concentration, uncertainty of
market factors, pricing assumptions and other risks affecting the specific instrument.
(ii) Measurement of ECL
The following significant judgements are required in applying the accounting requirements for measuring the ECL.
Significant increase of credit risk
As explained in Note 2(8)(iii), ECL are measured as an allowance equal to 12-month ECL for stage 1 assets, or lifetime ECL
assets for stage 2 or stage 3 assets. An asset moves to stage 2 when its credit risk has increased significantly since initial
recognition. In assessing whether the credit risk of an asset has significantly increased, the Group takes into account
qualitative and quantitative reasonable and supportable forward looking information.
Establishing groups of assets with similar credit risk characteristics
When ECLs are measured on a collective basis, the financial instruments are grouped on the basis of shared risk
characteristics. The Group monitors the appropriateness of the credit risk characteristics on an ongoing basis to assess
whether they continue to be similar. This is required in order to ensure that should credit risk characteristics change there is
appropriate re-segmentation of the assets. This may result in new portfolios being created or assets moving to an existing
portfolio that better reflects the similar credit risk characteristics of that group of assets. Assets move from 12-month to
lifetime ECLs when there is a significant increase in credit risk, but it can also occur within portfolios that continue to be
measured on the same basis of 12-month or lifetime ECLs but the amount of ECL changes because the credit risk of the
portfolios differ.
Models and assumptions used
The Group uses various models and assumptions in estimating ECL. Judgement is applied in identifying the most
appropriate model for each type of asset, as well as for determining the assumptions used in these models, including
assumptions that relate to key drivers of credit risk.
Forward-looking information
When measuring ECL the Group uses reasonable and supportable forward looking information, which is based on
assumptions for the future movement of different economic drivers and how these drivers will affect each other.
Probability of default (PD)
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PD constitutes a key input in measuring ECL. PD is an estimate of the likelihood of default over a given time horizon, the
calculation of which includes historical data, assumptions and expectations of future conditions.
Loss given default (LGD)
LGD is an estimate of the loss arising on default. It is based on the difference between the contractual cash flows due
and those that the lender would expect to receive, taking into account cash flows from collateral and integral credit
enhancements.
Loss ratio (LR)
LR represents the Group’s expectation of the likelihood and extent of loss on exposure based on the relevant loan
to collateral ratio. The Group uses historical loss rates based on publicly available information and assesses their
appropriateness.
(iii) Impairment of non-financial assets
Non-financial assets are reviewed regularly to determine whether the carrying amount exceeds the recoverable amount of
the assets. If any such indication exists, an impairment loss is provided.
Since the market price of an asset (the asset group) cannot be obtained reliably, the fair value of the asset cannot be
estimated reliably. In assessing the present value of future cash flows, significant judgements are exercised over the asset’s
selling price, related operating expenses and discounting rate to calculate the present value. All relevant materials which
can be obtained are used for estimation of the recoverable amount, including the estimation of the selling price and
related operating expenses based on reasonable and supportable assumption.
(iv) Depreciation and amortisation
Property and equipment, investment property, intangible assets, leasehold improvements and long-term deferred
expenses are depreciated and amortised using the straight-line method over their estimated useful lives after taking into
account residual values. The estimated useful lives are regularly reviewed to determine the depreciation and amortisation
costs charged in the reporting period. The estimated useful lives are determined based on historical experiences of similar
assets and the estimated technical changes. If there is an indication that there has been a change in the factors used to
determine the depreciation or amortisation, the amount of depreciation or amortisation will be revised.
(v) Income taxes
Determining income tax provisions involves judgement on the future tax treatment of certain transactions. The Group
carefully evaluates tax implications of transactions and tax provisions are set up accordingly. The tax treatment of such
transactions is reconsidered periodically to take into account all changes in tax legislations. Deferred tax assets are
recognised for tax losses not yet used and temporary deductible differences. As those deferred tax assets can only be
recognised to the extent that it is probable that future taxable profit will be available against which the unused tax credits
can be utilised, management’s judgement is required to assess the probability of future taxable profits. Management’s
assessment is constantly reviewed and additional deferred tax assets are recognised if it becomes probable that future
taxable profits will allow the deferred tax assets to be recovered.
(vi) Determination scope of consolidation
All facts and circumstances must be taken into consideration in the assessment of whether the Group, as an investor,
controls the investee. The principle of control includes three elements: (i) power over the investee; (ii) exposure, or rights, to
variable returns from involvement with the investee; and (iii) the ability to use power over the investee to affect the amount
of investors’ returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control listed above.
For asset management schemes where the Group involves as the manager or investment consultant, the Group assesses
whether the combination of investments it holds, if any, together with its remuneration creates exposure to variability of
returns from the activities of the asset management schemes that is of such significance indicating that the Group is a
principal. The asset management scheme shall be consolidated if the Group acts in the role of principal.
280
HUATAI SECURITIES
(i) The income tax rate applicable to the Company and its subsidiaries in the Mainland China is 25% (2020: 25%). The
income tax rate applicable to subsidiaries in Hong Kong is 16.5% (2020: 16.5%). The corporate income tax rate applicable to
subsidiaries in the United States is 21% (2020: 21%). Taxes of other overseas subsidiaries are charged at the relevant local
rates.
Tax type Tax basis Tax rate
Value-added tax (VAT) Output VAT is calculated on product sales and taxable services revenue.
The basis for VAT payable is to deduct input VAT from the output VAT for the
period.
3% - 13%
City maintenance and construction tax Based on value added tax paid 1% - 7%
Education surcharge Based on value added tax paid 2% - 3%
Local Education surcharge Based on value added tax paid 1% - 2%
Income tax Based on taxable profits 25%
(i)
Year ended 31 December
2021
2020
Income from securities brokerage and advisory business
10,783,673
9,198,734
Income from asset management business
5,092,913
4,091,547
Income from underwriting and sponsorship business
4,053,693
3,351,882
Income from futures brokerage business
1,710,672
1,268,196
Income from financial advisory business
504,953
422,499
Other commission income
179,439
124,953
Total
22,325,343
18,457,811
4 Fee and commission income
3 Taxation
The Group’s main applicable taxes and tax rates are as follows:
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(i) For the year ended 31 December 2021 and 31 December 2020, the Group sold certain investment securities measured at
amortised cost. These sales were made because the financial assets no longer met the Group’s investment policy due to a
deterioration in their credit risk.
Year ended 31 December
2021
2020
Interest income from margin financing and securities lending
9,079,183
6,149,310
Interest income from financial institutions
3,874,504
3,243,487
Interest income from debt instruments at amortised cost
966,185
851,854
Interest income from securities-backed lending
330,323
248,120
Interest income from debt instruments at fair value through other
comprehensive income
298,591
272,184
Interest income from other financial assets held under resale
agreements
186,004
190,757
Others
6,269
8,169
Total
14,741,059
10,963,881
5 Interest income
Year ended 31 December
2021
2020
Dividend income and interest income from financial
instruments at fair value through profit or loss
9,332,733
8,695,327
Dividend income from financial assets at fair value
through other comprehensive income
618,870
1,320
Net realised losses from disposal of derivative
financial instruments
(17,553,798)
(10,441,578)
Net realised gains from disposal of financial
instruments at fair value through profit or loss
18,618,785
14,659,676
Net realised losses from disposal of financial instruments
at fair value through other comprehensive income
(100,557)
(10,601)
Net gains arising from derecognition of debt
investment at amortised cost
(i)
46,269
3,567
Unrealised fair value changes of derivative financial
instruments
9,003,658
(7,426,886)
Unrealised fair value changes of financial instruments
at fair value through profit or loss
(8,694,589)
4,678,762
Total
11,271,371
10,159,587
6 Net investment gains
282
HUATAI SECURITIES
7 Other income and gains
Year ended 31 December
2021
2020
Income from commodity sales
3,415,908
1,206,870
Government grants
(i)
270,709
273,423
Rental income
44,481
69,746
Gains on disposal of property and equipment
296
1,455
Excess of interest in the fair value of investee’s identifiable net
assets over investment costs of associates venture acquired
-
60,073
Foreign exchange losses
(282,024)
(821,223)
Others
139,261
162,813
Total
3,588,631
953,157
(i) The government grants were received unconditionally by the Company and its subsidiaries from the local government
where they reside.
Year ended 31 December
2021
2020
Expenses for securities brokerage and
advisory business
3,401,888
2,922,867
Expenses for futures brokerage business
1,051,770
857,101
Expenses for asset management business
983,217
936,597
Expenses for underwriting and sponsorship business
213,002
128,992
Expenses for financial advisory business
1,484
1,462
Other commission expenses
1,348
2,303
Total
5,652,709
4,849,322
8 Fee and commission expenses
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Year ended 31 December
2021
2020
Interest expenses on long-term bonds
4,450,296
2,912,479
Interest expenses on financial assets
sold under repurchase agreements
2,922,914
2,863,130
Interest expenses on placements
1,788,534
737,949
Interest expenses on short-term
debt instruments issued
865,817
903,219
Interest expenses of accounts payable to
brokerage clients
664,432
528,517
Interest expenses on short-term bank loans
114,595
230,169
Interest expenses on lease liabilities
48,242
39,470
Interest expenses on long-term bank loans
22,956
34,295
Others
112,589
109,475
Total
10,990,375
8,358,703
9 Interest expenses
Year ended 31 December
Note
2021
2020
Salaries, bonuses and allowances
9,371,929
8,225,010
Contribution to pension schemes
960,397
863,813
Equity-settled share-based payment expenses 62
243,690
654,134
Other social welfare
781,178
660,692
Total
11,357,194
10,403,649
10 Staff costs
The domestic employees of the Group in the PRC participate in social welfare plans, including pension, medical, housing,
and other welfare benefits, organised and administered by the governmental authorities. The Group also operates a
Mandatory Provident Fund Scheme for all qualifying employees in Hong Kong under the Mandatory Provident Fund Schemes
Ordinance. According to the relevant regulations, the premiums and welfare benefits contributions that should be borne
by the Group are calculated on regular basis and paid to the labour and social welfare authorities. The contributions to the
social security plans are expensed as incurred.
The Group provides its full-time employees in Mainland China and certain countries or jurisdictions outside Mainland
China with relevant pension plans as required by the governments or by local labour laws, including the basic pension
plan in Mainland China, the Mandatory Provident Funds in Hong Kong and other statutory plans in certain countries outside
Mainland China. The Group did not have any forfeited contributions under these pension plans.
The Group also provides an enterprise annuity plan to employees in Mainland China. According to the plan, when an
employee resigns, part of the contributed amount may be returned to the Company’s enterprise annuity account based
on his/her actual working time. Such returned contributions had no impact on the level of annuity contributions for existing
employees. The Group did not utilise any of such forfeited contributions to reduce the existing level of contributions.
284
HUATAI SECURITIES
Year ended 31 December
2021
2020
Amortisation of land-use rights and other intangible assets
477,161
523,708
Depreciation of property and equipment
851,616
709,705
- Right-of-use assets
462,505
374,309
- Other property and equipment
389,111
335,396
Amortisation of leasehold improvements and
long-term deferred expenses
88,859
88,173
Depreciation of investment properties
15,009
19,798
Total
1,432,645
1,341,384
Year ended 31 December
2021
2020
City maintenance and construction tax
109,041
97,179
Education surcharges
79,544
67,986
Others
51,310
43,992
Total
239,895
209,157
12 Tax and surcharges
11 Depreciation and amortisation on expenses
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Year ended 31 December
2021
2020
Cost of commodity sales
3,424,414
1,178,340
IT expenses
1,398,190
597,426
Marketing, advertising and promotion expenses
642,662
428,571
Consulting fees
396,277
257,685
Stock exchange fees
383,240
280,004
Postal and communication expenses
263,386
231,806
Products distribution expenses
130,332
208,705
Securities investor protection funds
126,481
102,376
Utilities
53,575
43,336
Auditors' remuneration
12,823
13,278
Rental expenses
41,020
77,792
Others
1,190,417
1,346,311
Total
8,062,817
4,765,630
13 Other operating expenses
Year ended 31 December
2021
2020
Reversal of impairment losses against cash and bank balances
(273)
(9,749)
Provision for impairment losses against margin accounts receivable
446,060
1,355,580
Reversal of impairment losses against other receivables and
prepayments
(28,750)
(149,505)
(Reversal of) / provision for impairment losses against debt
investment at amortised cost
(12,906)
21,355
Provision for impairment losses against financial assets at
fair value through other comprehensive income
29,105
63,220
Provision for /(reversal of) impairment losses against
financial assets held under resale agreements
80,513
(18,138)
Provision for impairment losses against accounts receivable
34,439
43,445
Total
548,188
1,306,208
14 Net provision for impairment loss on financial assets
286
HUATAI SECURITIES
15 Income tax expense
(a) Taxation in the consolidated income statements represents:
(b) Reconciliation between income tax expense and accounting profit at applicable tax rate:
Year ended 31 December
2021
2020
Current income tax
- Mainland China
2,591,351
2,728,349
- Hong Kong
108,545
-
- Overseas
147,852
124,325
2,847,748
2,852,674
Adjustment in respect of prior years
- Mainland China
7,302
(3,460)
- Hong Kong
8,919
-
- Overseas
-
-
16,221
(3,460)
Deferred tax
Origination and reversal of temporary differences
(192,300)
(215,284)
Total
2,671,669
2,633,930
Year ended 31 December
2021
2020
Profit before income tax
16,272,562
13,504,376
Notional tax calculated using the PRC statutory tax rate
4,068,141
3,376,094
Tax effect of non-deductible expenses
421,300
148,308
Tax effect of non-taxable income
(1,687,773)
(844,011)
Tax effect of unused tax losses not recognised
26,676
21,523
Effect of using the deductible tax losses for which no deferred tax
asset was recognised in previous period
(12,400)
(86,544)
Effect of different tax rates of the subsidiaries
(153,277)
19,327
Adjustment for prior years
16,221
(3,460)
Others
(7,219)
2,693
Actual income tax expense
2,671,669
2,633,930
(1) According to the PRC Corporate Income Tax (“CIT”) Law that took effect on 1 January 2008, the Company and the Group’s
subsidiaries in the Mainland China are subject to CIT at the statutory tax rate of 25%.
(2) Hong Kong profit tax has been provided at the rate of 16.5% on the estimated assessable profits. The federal income
tax of subsidiaries in the United States were provided at the rate of 21%, whereas the states’ income tax are charged at the
applicable local tax rates.
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16 Directors’ and supervisors’ remuneration
The remuneration of directors and supervisors who held office during the reporting period is as follows:
Year ended 31 December 2021
Name
Directors’
fees
Salaries,
allowances and
benefits in kind
Contribution
to pension
schemes
Discretionary
bonuses
Annuity
plan
Share-based
payments Total
Executive directors
Zhang Wei
- 422 38 1,349 176
-
1,985
Zhou Yi
- 1,315 38 3,248 178
1,589
6,368
Zhu Xuebo
- - - - -
-
-
Non-executive
directors
Ding Feng
(1)
- - - - - - -
Chen Yongbing
(1)
- - - - - - -
Ke Xiang
(1)(2)
- - - - - - -
Xu Qing
(1)(3)
- - - - - - -
Hu Xiao
(1)
- - - - - - -
Wang Tao
(1)
- - - - - - -
Independent non-
executive directors
Chen Chuanming
240 - - - - - 240
Liu Hongzhong
(4)
- - - - - - -
Lee Chi Ming
(5)
120 - - - - - 120
Liu Yan
240 - - - - - 240
Chen Zhibin
240 - - - - - 240
Wang Jianwen
(6)
240 - - - - - 240
Au King Chi
(7)
140 - - - - - 140
Supervisors
Zhai Jun
(8)
- 511 32 4,332 124 - 4,999
Zhang Ming
(1)
- - - - - - -
Yu Lanying
(1)
- - - - - - -
Zhang Xiaohong
(1)
- - - - - - -
Fan Chunyan
(1)
- - - - - - -
Gu Chengzhong
(9)
- 856 38 4,375 122 - 5,391
Wang Ying
- 856 38 2,920 95 - 3,909
Wang Juan
(10)
- 532 38 450 84 - 1,104
Total
1,220 4,492 222 16,674 779 1,589 24,976
288
HUATAI SECURITIES
(1) The remunerations of these non-executive directors and supervisors of the Company were borne by its shareholders
and other related parties including Jiangsu Guoxin Investment Group Limited, Jiangsu Communications Holding Company
Limited, CMB Wealth Management Company Limited and Jiangsu Govtor Capital Group Co., Ltd.,etc. No allocation of the
remunerations between these shareholders and the Group has been made during the reporting period.
(2) Appointed as non-executive director on 8 February 2021.
(3) Resigned as non-executive director on 8 February 2021.
(4) Resigned as independent non-executive director on 19 June 2020.
(5) Resigned as independent non-executive director on 22 June 2021.
(6) Appointed as independent non-executive director on 18 June 2020.
(7) Appointed as independent non-executive director on 22 June 2021.
Year ended 31 December 2020
Name
Directors’
fees
Salaries,
allowances and
benefits in kind
Contribution
to pension
schemes
Discretionary
bonuses
Annuity
plan
Share-based
payments Total
Executive directors
Zhang Wei - 371 28 388 134
-
921
Zhou Yi - 1,152 28 1,260 143
-
2,583
Zhu Xuebo - 305 25 586 142
-
1,058
Non-executive
directors
Ding Feng
(1)
- - - - - - -
Chen Yongbing
(1)
- - - - - - -
Xu Qing
(1)(3)
- - - - - - -
Hu Xiao
(1)
- - - - - - -
Wang Tao
(1)
- - - - - - -
Independent non-
executive directors
Chen Chuanming 240 - - - - - 240
Liu Hongzhong
(4)
120 - - - - - 120
Lee Chi Ming
(5)
240 - - - - - 240
Liu Yan 240 - - - - - 240
Chen Zhibin 240 - - - - - 240
Wang Jianwen
(6)
140 - - - - - 140
Supervisors
Zhai Jun
(8)
- 848 51 2,670 98 - 3,667
Zhang Ming
(1)
- - - - - - -
Yu Lanying
(1)
- - - - - - -
Zhang Xiaohong
(1)
- - - - - - -
Fan Chunyan
(1)
- - - - - - -
Gu Chengzhong
(9)
- 828 28 2,661 97 - 3,614
Wang Ying - 772 28 1,725 76 - 2,601
Total 1,220 4,276 188 9,290 690 - 15,664
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(8) Resigned as chairman of the supervisory board on 29 October 2021.
(9) Appointed as chairman of the supervisory board on 29 October 2021.
(10) Appointed as supervisor on 29 October 2021.
There were no amounts paid during the reporting period to the directors and supervisors in connection with their retirement
from employment or compensation for loss of office with the Company, or inducement to join. During the year, there was
no arrangement under which a director or a supervisor who had resigned waived or agreed to waive any remuneration.
17 Individuals with highest emoluments
Of the five individuals with the highest emoluments, none are directors or supervisors whose emoluments are disclosed in
Note 16. The aggregate of the emoluments are as follows:
Year ended 31 December
2021
2020
Salaries and allowances
18,198
14,764
Discretionary bonuses
42,830
35,138
Employer’s contribution to pension schemes
458
462
Share-based payments
56,525
108,130
Total
118,011
158,494
The emoluments with the highest emoluments are within the following bands:
Year ended 31 December
2021
2020
Number of individuals
Number of individuals
HKD9,500,001 to HKD10,000,000
-
-
HKD10,000,001 to HKD15,000,000
-
-
HKD15,000,001 to HKD20,000,000
1
2
HKD20,000,001 to HKD25,000,000
1
-
Over HKD25,000,000
3
3
Total
5
5
No emoluments are paid or payable to these individuals as retirement from employment or as an inducement to join or
upon joining the Company or as compensation for loss of office during the reporting period.
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HUATAI SECURITIES
Year ended 31 December 2020
Before tax Tax expense Net of tax
Net gain from debt investments at FVOCI 77,974 - 77,974
Equity investments at FVOCI:
- Net movement in fair value
reserve (non-recycling)
248,725 (58,771) 189,954
Reserve from cash flow hedging instruments (34,348) - (34,348)
Share of other comprehensive
income of associates and joint ventures
(55,583) - (55,583)
Exchange differences on
translation of financial statements in foreign currencies
(717,314) - (717,314)
Total (480,546) (58,771) (539,317)
Year ended 31 December 2021
Before tax Tax expense Net of tax
Net gain from debt investments at FVOCI
(49,215) (3,896) (53,111)
Equity investments at FVOCI:
- Net movement in fair value
reserve (non-recycling)
(504,393) 122,805 (381,588)
Reserve from cash flow hedging instruments
20,164 - 20,164
Share of other comprehensive
income of associates and joint ventures
51,482 - 51,482
Exchange differences on
translation of financial statements in foreign currencies
(263,031) - (263,031)
Total
(744,993) 118,909 (626,084)
18 Other comprehensive income
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Year ended 31 December
Note
2021
2020
Consolidated net profit attributable to ordinary
shareholders of the Company (in RMB thousands) 19(1)(a)
13,249,590
10,822,497
Weighted average number of ordinary shares
(in thousands) 19(1)(b)
8,985,942
9,027,078
Basic earnings per share attributable to
ordinary shareholders (in RMB per share)
1.47
1.20
19 Basic and diluted earnings per share
(1) Basic earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable to ordinary shareholders of the
Company by the weighted average number of ordinary shares outstanding:
Year ended 31 December
2021
2020
Consolidated net profit attributable to equity
shareholders of the Company
13,346,106
10,822,497
Dividends declared under Restricted Share Incentive
Scheme of A Shares
(18,195)
-
Profit attributable to perpetual subordinated bonds
holders of the Company
(i)
(78,321)
-
Consolidated net profit attributable to ordinary
shareholders of the Company
13,249,590
10,822,497
Year ended 31 December
2021
2020
Number of ordinary shares as at 1 January
9,076,650
9,076,650
Decrease in weighted average number of ordinary shares
(90,708)
(49,572)
Weighted average number of ordinary shares
8,985,942
9,027,078
(a) Consolidated net profit attributable to ordinary shareholders of the Company (in RMB thousands)
(i) For the purpose of calculating basic earnings per ordinary share in respect of the year ended 31 December 2021, RMB78
million (2020: Not applicable) attributable to perpetual subordinated bonds were deducted from profits attributable to
equity holders of the Company.
(b) Weighted average number of ordinary shares (in thousands)
292
HUATAI SECURITIES
Year ended 31 December
2021
2020
Consolidated net profit attributable to ordinary
shareholders of the Company
13,249,590
10,822,497
Diluted adjustments:
Effect of conversion of convertible bonds from the
associate of the Company
(i)
(138,059)
(77,584)
Assumed vesting of shares granted to employees
of a subsidiary
(ii)
(792)
-
Consolidated net profit attributable to ordinary
shareholders of the Company (diluted)
13,110,739
10,744,913
Year ended 31 December
Note
2021
2020
Consolidated net profit attributable to
ordinary shareholders of the Company (diluted)
19(2)(a)
13,110,739
10,744,913
Weighted average number of ordinary
shares outstanding (in thousands)
8,985,942
9,027,078
Diluted earnings per share attributable to ordinary
shareholders (in Renminbi per share)
1.46
1.19
(2) Diluted earnings per share
Diluted earnings per share is calculated as dividing consolidated net profit attributable to ordinary shareholders of the
Company (diluted) by the weighted average number of ordinary shares outstanding:
(a) Consolidated net profit attributable to ordinary shareholders of the Company (diluted) is calculated as follows:
(i) Bank of Jiangsu Co., Ltd. (“Bank of Jiangsu”), the associate of the Company issued convertible bonds in March 2019.
Diluted earnings per share takes into account the potential dilutive impact on the Group’s share of profits of this associate
due to the potential full conversion of bonds to shares.
(ii) The dilutive effect is due to the stock options and restricted stock units issued by AssetMark Financial Holdings, Inc. .
(iii) During 2021, the Company granted Restricted Stock Incentive Scheme of A shares to certain employees. Diluted earnings
per share should take into account both the impact of the cash dividend of the current period distributed to the holders
of restricted shares who are expected to reach the unlocking conditions and estimate number of restricted shares will be
unlocked. After considering the abovementioned impacts, the Restricted Stock Incentive Scheme has an anti-diluted effect
and excluded from the calculation of diluted earnings per share for the year ended 31 December 2021. For the year ended 31
December 2020, the Company had no potentially dilutive shares outstanding.
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20 Property and equipment
Buildings
Motor
vehicles
Electric
equipment
Furniture
and fixtures
Construction
in progress
Right-of-use
assets Total
Cost
As at 1 January 2021
3,778,317 153,956 1,393,319 288,254 36,551 1,797,496 7,447,893
Additions
- 1,640 394,584 66,158 141,329 425,077 1,028,788
Transfer during the year
(Note 33(b))
- - 959 3,529 (81,821) - (77,333)
Transfer in from
investment
properties(Note 21)
142,890 - - - - - 142,890
Disposals
- (4,394) (77,825) (9,425) - (167,983) (259,627)
Transfer to investment
properties (Note 21)
(10,758) - - - - - (10,758)
As at 31 December 2021
3,910,449 151,202 1,711,037 348,516 96,059 2,054,590 8,271,853
Accumulated
depreciation
As at 1 January 2021
(871,680) (106,561) (663,130) (193,919) - (598,519) (2,433,809)
Charge for the year
(109,919) (7,901) (214,463) (56,828) - (462,505) (851,616)
Transfer in from
investment properties
(Note 21)
(38,154) - - - - - (38,154)
Disposals
- 4,264 73,825 7,641 - 138,875 224,605
Transfer to investment
properties (Note 21)
5,343 - - - - - 5,343
As at 31 December 2021
(1,014,410) (110,198) (803,768) (243,106) - (922,149) (3,093,631)
Carrying amount
As at 31 December 2021
2,896,039 41,004 907,269 105,410 96,059 1,132,441 5,178,222
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HUATAI SECURITIES
As at 31 December 2021 and 31 December 2020, included in buildings, there is a carrying amount of RMB44.40 million and
RMB6.56 million, respectively, for which the Group has yet to obtain the relevant land or building certificates.
Buildings
Motor
vehicles
Electric
equipment
Furniture
and fixtures
Construction
in progress
Right-of-use
assets Total
Cost
As at 1 January 2020 3,655,708 155,821 1,148,900 271,929 29,969 1,252,706 6,515,033
Additions
- 6,449 318,220 25,517 87,013 636,051 1,073,250
Transfer during the year
(Note 33(b))
357 - 2,680 3,569 (80,431) - (73,825)
Transfer in from
investment properties
(Note 21)
124,454 - - - - - 124,454
Disposals (2,202) (8,314) (76,481) (12,761) - (91,261) (191,019)
As at 31 December 2020 3,778,317 153,956 1,393,319 288,254 36,551 1,797,496 7,447,893
Accumulated
depreciation
As at 1 January 2020 (742,695) (106,512) (541,368) (172,641) - (283,701) (1,846,917)
Charge for the year (103,792) (8,115) (193,600) (29,889) - (374,309) (709,705)
Transfer in from
investment properties
(Note 21)
(25,618) - - - - - (25,618)
Disposals 425 8,066 71,838 8,611 - 59,491 148,431
As at 31 December 2020 (871,680) (106,561) (663,130) (193,919) - (598,519) (2,433,809)
Carrying amount
As at 31 December 2020 2,906,637 47,395 730,189 94,335 36,551 1,198,977 5,014,084
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As at 31 December
2021
2020
Cost
As at 1 January
644,786
769,459
Additions
-
-
Transfer to property and equipment (Note 20)
(142,890)
(124,454)
Transfer in from property and equipment (Note 20)
10,758
-
Disposals
-
(219)
As at 31 December
512,654
644,786
Accumulated depreciation
As at 1 January
(231,901)
(237,823)
Charge for the year
(15,009)
(19,798)
Transfer in from property and equipment (Note 20)
(5,343)
-
Transfer to property and equipment (Note 20)
38,154
25,618
Disposals
-
102
As at 31 December
(214,099)
(231,901)
Impairment
As at 1 January
(4,547)
(4,547)
Impairment losses for the year
-
-
As at 31 December
(4,547)
(4,547)
Carrying amount 294,008
408,338
As at 31 December 2021 and 31 December 2020, included in investment properties, there is a carrying amount of RMB5.19
million and RMB46.06 million, respectively, for which the Group has yet to obtain the relevant land or building certificates.
21 Investment properties
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HUATAI SECURITIES
Cost
As at 1 January 2021 2,260,945
Acquisition through business combination 633,975
Effect of movements in exchange rates (58,491)
As at 31 December 2021 2,836,429
Impairment losses
As at 1 January 2021 -
Impairment losses -
As at 31 December 2021 -
Carrying amounts
As at 1 January 2021 2,260,945
As at 31 December 2021 2,836,429
22 Goodwill
The Group acquired the investment banking business together with the relevant assets and liabilities, and the interest in
Huatai United Securities Co., Ltd. in 2006. The Group recognised the excess of fair value of the consideration transferred over
the fair value of the net identifiable assets acquired as the goodwill of the investment banking CGU.
The Group acquired the futures brokerage business together with the relevant assets and liabilities, and the interest in
Huatai Futures Co., Ltd. (previously known as Great Wall Futures Co., Ltd.) in 2006. The Group recognised the excess of fair
value of the consideration transferred over the fair value of the net identifiable assets acquired as the goodwill of the
futures brokerage CGU.
The Group acquired the overseas asset management business together with the relevant assets and liabilities, and the
interest in AssetMark Financial Holdings, Inc. in 2016. The Group recognised the excess of fair value of the consideration
transferred over the fair value of the net identifiable assets acquired as the goodwill of the overseas asset management
CGU.
AssetMark Financial Holdings, Inc. acquired 100% of the equity of Global Financial Private Capital, Inc. in April 2019. The
Group recognised the excess of fair value of the consideration transferred over the fair value of the net identifiable assets
acquired as the addition goodwill of the overseas asset management CGU.
AssetMark Financial Holdings, Inc. acquired 100% of the equity of WBI OBS Financial, Inc. in Feburary 2020. The Group
recognised the excess of fair value of the consideration transferred over the fair value of the net identifiable assets
acquired as the addition goodwill of the overseas asset management CGU. In 2021, the Group adjusts its organizational
structrure. AssetMark Financial Holdings, Inc.'s subsidiary, AssetMark, Inc., merged WBI OBS Financial, LLC. Considering this is a
combination under the same control, the goodwill remains unchanged.
AssetMark Financial Holdings, Inc. acquired 100% of the equity of Voyant, Inc. in July 2021. The Group recognised the excess of
fair value of the consideration transferred over the fair value of the net identifiable assets acquired as the addition goodwill
of the overseas asset management CGU.
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As at 31 December
2021
2020
Investment banking
51,090
51,090
Futures brokerage
252
252
Overseas asset management
2,785,087
2,209,603
Total
2,836,429
2,260,945
For the investment banking and futures brokerage CGU, the cash flows generated from each subsidiary acquired are
independent. Therefore, each of these acquired subsidiaries is a separate CGU. For the overseas asset management
CGU, the Group considered that the primary business of Global Financial Private Capital, Inc. acquired in 2019, WBI OBS
Financial, Inc. acquired in 2020 and Voyant, Inc. acquired in 2021 are the same as AssetMark Financial Holdings, Inc., and
they can bring synergies to overseas asset management business. The Group assessed that there was only one CGU within
AssetMark Financial Holdings, Inc.. The Group performed the impairment test for the goodwill generated from each CGU.
(1) Investment banking and futures brokerage CGU
The recoverable amounts of each CGU are determined based on value-in-use calculations, respectively. These calculations
use cash flow projections with reference to financial budgets approved by management covering certain period. Cash-
flows beyond the certain period are extrapolated using an estimated weighted average growth rate, which does not
exceed the long-term average growth rate. As at 31 December 2021, the discount rate used by the investment banking
and futures brokerage CGUs were 20% and 18%, respectively (20% and 18%, respectively, as at 31 December 2020), and the
weighted average growth rate were 5% and 6.6%, respectively (5% and 6.6%, respectively, as at 31 December 2020). The
discount rate and weighted average growth rate reflected the risks and growth expectations of the relevant CGUs. Other
major assumptions for the recoverable amount estimation relate to the estimation of cash inflows / outflows which include
budgeted income and profit margins. Such estimation is based on the CGU’s past performance and management’s
expectations for the market development.
(2) Overseas asset management CGU
The recoverable amount of the CGU has been determined based on fair value less costs of disposal based on the stock
price of AssetMark Financial Holdings, Inc. in New York Stock Exchange as at 31 December 2021.
As at 31 December 2021, the Group performed its annual goodwill impairment test. No impairments were recognised for the
goodwill related to investment banking CGU, futures brokerage CGU and overseas asset management CGU. The Group
believes that appropriate assumptions have been made based on available information. The key assumptions based on
the cash flow projections of the asset groups may change, which may cause the recoverable amounts to be over or below
its book value.
Impairment testing on goodwill
Goodwill is allocated to the Group’s cash-generating units (“CGU”) identified according to operating segment as follows:
298
HUATAI SECURITIES
23 Land-use rights and other intangible assets
Land
use rights
Existing
relationships with
broker-dealers
Enterprise
distribution
channel customer
relationships Trade names
Software
and others Total
Cost
As at 1 January 2021
362,281 3,738,930 - 300,370 2,846,622 7,248,203
Acquisition of subsidiaries
- - 207,716 20,707 167,596 396,019
Additions
1,406,049 - - - 324,973 1,731,022
Disposals
- - - - (1,667) (1,667)
Exchange differences
- (102,733) (5,707) (8,253) (39,037) (155,730)
As at 31 December 2021
1,768,330 3,636,197 202,009 312,824 3,298,487 9,217,847
Accumulated amortisation
As at 1 January 2021
(92,622) - - (87,012) (1,792,500) (1,972,134)
Charge for the year
(24,492) - - (46,907) (405,762) (477,161)
Disposals
- - - - 1,666 1,666
Exchange differences
- - - 2,457 17,998 20,455
As at 31 December 2021
(117,114) - - (131,462) (2,178,598) (2,427,174)
Carrying amount
As at 31 December 2021
1,651,216 3,636,197 202,009 181,362 1,119,889 6,790,673
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Land
use rights
Existing
relationships with
broker-dealers Trade names
Software
and others Total
Cost
As at 1 January 2020 362,281 3,979,783 319,719 2,530,698 7,192,481
Acquisition of subsidiaries - - - 66,563 66,563
Additions - - - 326,147 326,147
Disposals - - - (94) (94)
Exchange differences - (240,853) (19,349) (76,692) (336,894)
As at 31 December 2020 362,281 3,738,930 300,370 2,846,622 7,248,203
Accumulated amortisation
As at 1 January 2020 (85,362) - (53,653) (1,342,009) (1,481,024)
Charge for the year (7,260) - (36,645) (479,803) (523,708)
Disposals - - - 94 94
Exchange differences - - 3,286 29,218 32,504
As at 31 December 2020 (92,622) - (87,012) (1,792,500) (1,972,134)
Carrying amount
As at 31 December 2020 269,659 3,738,930 213,358 1,054,122 5,276,069
Existing relationships with brokers-dealers and enterprise distribution channel customer are regarded as having an
indefinite useful life and are not amortised because there is no foreseeable limit to the period over which the asset is
expected to generate economic benefits for the Group.
As at 31 December 2021, the Group performed its impairment test on the relationships with brokers-dealers based on
the judgment of whether the recoverable amounts of the above individual intangible assets can be reliably estimated.
The recoverable amounts are determined based on value-in-use calculation. The Group uses cash flow projections with
reference to Assetmark Financial Holdings, Inc.’s financial budget approved by management covering a 9-year period and
the discount rate of 15.6%. The current rate has reflected the specific risks of the underlying assets. The cash flows for the
years beyond the financial budget are estimated at the long-term average growth rate of 3.5%.
As at 31 December 2021, the Group performed its impairment test on the Enterprise distribution channel customer
relationships based on the judgment of whether the recoverable amounts of the above individual intangible assets can be
reliably estimated. The recoverable amounts are determined based on value-in-use calculation. The Group uses cash flow
projections with reference to Voyant, Inc.’s financial budget approved by management covering a 10 year period and the
discount rate of 14.5%. The current rate has reflected the specific risks of the underlying assets. The cash flows for the years
beyond the financial budget are estimated at the long-term average growth rate of 2.5%.
Based on management’s impairment assessment of the Group, no impairment loss was recognised for the year ended 31
December 2021 (31 December 2020: Nil).
300
HUATAI SECURITIES
Name of company
Place and date of
Incorporation /
establishment and business
Issued and
fully paid-up
capital
Equity interest held
by the Company
as at 31 December Principal activity
Auditor
(1)
GAAP
2021
2020
2021
2020
Huatai United Securities Co., Ltd.
(4)
PRC
5 September 1997
RMB
997,480,000
99.92%
99.92%
Investment
banking
KPMG PRC
PRC GAAP
KPMG PRC
PRC GAAP
Huatai Futures Co., Ltd.
(4)
PRC
10 July 1995
RMB
1,609,000,000
60.00%
60.00%
Futures
brokerage
KPMG PRC
PRC GAAP
KPMG PRC
PRC GAAP
Huatai Purple Gold Investment Co., Ltd.
(4)
PRC
12 August 2008
RMB
5,200,000,000
100.00%
100.00%
Equity
investment
KPMG PRC
PRC GAAP
KPMG PRC
PRC GAAP
Huatai Financial Holdings (Hong Kong) Limited
(2)
Hong Kong
23 November 2006
HKD
8,800,000,000
100.00%
100.00%
Securities
and futures
brokerage
KPMG
HKFRSs
KPMG
HKFRSs
Huatai International Financial Holdings Co., Ltd.
Hong Kong
5 April 2017
HKD
10,200,000,002
100.00%
100.00%
Holding
company
KPMG
HKFRSs
KPMG
HKFRSs
Huatai Innovative Investment Co., Ltd.
(4)
PRC
21 November 2013
RMB
2,300,000,000
100.00%
100.00%
Alternative
investment
KPMG PRC
PRC GAAP
KPMG PRC
PRC GAAP
Huatai Securities (Shanghai)
Assets Management Co., Ltd.
(4)
PRC
16 October 2014
RMB
2,600,000,000
100.00%
100.00%
Asset
management
KPMG PRC
PRC GAAP
KPMG PRC
PRC GAAP
Shenzhen Huatai Ruilin Equity Management
(Limited Partnership)
(2)(3)(5)
PRC
28 September 2014
RMB
-
31.00%
31.00%
Equity
investment
KPMG PRC
PRC GAAP
KPMG PRC
PRC GAAP
Beijing Huatai Ruihe Medical Industry Investment
(Limited Partnership)
(2)(3)(5)
PRC
1 June 2015
RMB
276,615,840
45.00%
45.00%
Equity
investment
KPMG PRC
PRC GAAP
KPMG PRC
PRC GAAP
24 Investments in subsidiaries
(a) Details of principal subsidiaries
The following list contains only the particulars of subsidiaries which principally affected the results, assets or liabilities of the Group. Unless otherwise stated, the class of shares hold is
ordinary, and the issued and fully paid-up capital is expressed in Renminbi Yuan:
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Name of company
Place and date of
Incorporation /
establishment and business
Issued and
fully paid-up
capital
Equity interest held
by the Company
as at 31 December Principal activity
Auditor
(1)
GAAP
2021
2020
2021
2020
Yili Suxin Investment Fund (Limited Partnership)
(2)(3)(5)
PRC
19 February 2016
RMB
1,810,000,000
24.73%
24.73%
Equity
investment
KPMG PRC
PRC GAAP
KPMG PRC
PRC GAAP
AssetMark Financial Holdings, Inc
.(2)
US
1 January 1996
USD
73,563
69.16%
70.27% Asset management
KPMG LLP
US GAAP
KPMG LLP
US GAAP
Huatai Great Wall Capital Management Co., Ltd.
(2)(4)
PRC
6 December 2013
RMB
650,000,000
100.00%
100.00%
Spread trading and
commodity warrant
trading
KPMG PRC
PRC GAAP
KPMG PRC
PRC GAAP
Huatai Great Wall Investment Management Co., Ltd.
(2)(4)
PRC
3 August 2017
RMB
550,000,000
100.00%
100.00%
Investment
management
KPMG PRC
PRC GAAP
KPMG PRC
PRC GAAP
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(1) Auditors of the respective subsidiaries of the Group are as follows:
- KPMG PRC represents KPMG Huazhen LLP, a firm of certified public accountants registered in PRC;
- KPMG represents KPMG in Hong Kong, a firm of certified public accountants registered in Hong Kong; and
- KPMG LLP represents KPMG in the United States, a firm of certified public accountants registered in the United States.
(2) These subsidiaries are indirectly controlled by the Company.
(3) As at 31 December 2021, the Company indirectly held less than 50% of the equity of Shenzhen Huatai Ruilin Equity
Management (Limited Partnership), Beijing Huatai Ruihe Medical Industry Investment (Limited Partnership) and Yili Suxin
Investment Fund (Limited Partnership). According to the articles of partnership agreement, the Company has the power to
control these funds and has the ability to use the power to affect the Company's variable return amount. Therefore, they
are included in the scope of the consolidated financial statements.
(4) Company with limited liability in Mainland China.
(5) Limited partnership in Mainland China.
(b) Partially-owned subsidiaries with material non-controlling interests
The following tables list out the information relating to Huatai Futures Co., Ltd. and AssetMark Financial Holdings, Inc., the
subsidiaries of the Group which have material non-controlling interest (“NCI”). The summarised financial information
presented below represents the amounts before any inter-company elimination:
Huatai Futures Co., Ltd. AssetMark Financial Holdings, Inc.
2021
2020
2021
2020
NCI percentage
40%
40%
30.84%
29.73%
Assets
52,230,734
42,842,627
8,926,805
7,983,789
Liabilities
(48,889,111)
(39,867,604)
(2,552,832)
(2,078,279)
Net assets
3,341,623
2,975,023
6,373,973
5,905,510
Carrying amount of NCI
1,336,649
1,189,665
1,965,733
1,755,703
Revenue
4,037,439
2,232,482
2,438,905
3,003,554
Profit / (loss) for the year
367,502
220,572
310,176
(355,513)
Other comprehensive income
(1,081)
(3,613)
-
-
Total comprehensive income
366,421
216,959
310,176
(355,513)
Profit / (loss) allocated to NCI
146,569
88,229
95,658
(106,361)
Dividend paid to NCI
-
-
-
-
Cash flows from operating activities
2,937,683
10,104,878
832,095
534,889
Cash flows from investing activities
(261,122)
359,050
(1,038,588)
(347,361)
Cash flows from financing activities
(41,002)
(46,819)
258,673
(352,429)
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(c) Acquisition of subsidiary
Voyant, Inc.
In 2021, the Company’s subsidiary AssetMark Financial Holdings, Inc. acquired all of the issued and outstanding equity
interests of Voyant, Inc. and its subsidiaries. Voyant, Inc. and its subsidiaries are Software-as-a-Service-based financial
planning, wellness and client digital engagement solutions companies that was originally formed in Texas on 29 December
2005 and was converted to a Delaware corporation on 21 November 2008. The Company closed the acquisition and paid
a final purchase price of USD157.10 million (RMB1,016.56 million) with USD132.19 million (RMB855.37 million) cash on hand and
the remaining USD24.91 million (RMB161.19 million) consideration is paid using 994,028 shares of AssetMark Financial Holdings,
Inc.. The equity interest held by the Group is 100% after the acquisition in 2021 July. The Group recognised the excess of the
consideration transferred over the fair value of the net identifiable assets acquired as the goodwill.
The fair values of the identifiable assets and liabilities of Voyant, Inc. as at the date of acquisition were as follows:
Goodwill arose from the acquisition because the cost of the acquisition included a control premium. In addition, the
consideration paid for the acquisition effectively included amounts in relation to the benefit of expected synergies, revenue
growth, and future market development. These benefits are not recognised separately from goodwill because they do not
meet the recognition criteria for identifiable intangible assets.
Since the acquisition, Voyant, Inc. contributed RMB44.54 million to the Group’s revenue and RMB6.65 million losses to the
consolidated profit for the year ended 31 December 2021.
Fair value recognised
as at the date of
acquisition
Cash and bank balances 51,939
Land-use rights and other intangible assets 396,019
Other receivables and prepayments 18,737
Other payables and accruals (13,006)
Deferred tax liability (71,102)
Total identifiable net assets at fair value 382,587
Goodwill arising from acquisition 633,975
Consideration transferred 1,016,562
Less: fair value of net assets acquired (382,587)
Carrying amount of goodwill 633,975
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HUATAI SECURITIES
As at 31 December
2021
2020
Share of net assets
18,269,459
17,691,161
25 Interest in associates
As at 31 December 2021 and 31 December 2020, the Group has pledged the shares of interest in associates with a total book
value of RMB4,133 million and nil to China Securities Finance Corporation Limited (“CSF”) for the purpose of replacement,
respectively.
The following list contains only the particulars of material associates, all of which (except that Bank of Jiangsu has been
listed on the Shanghai Stock Exchange) are unlisted corporate entities whose quoted market price is not available:
All the above associates are accounted for using the equity method in the consolidated financial statements.
(i) For the year ended 31 December 2021, the Company has appointed one director in the board of directors of Bank of
Jiangsu. The Company formulated certain specific implementation measures on the finance and operation policy-making
of Bank of Jiangsu that had a significant influence over it. As of 31 December 2021, Bank of Jiangsu has converted 95,112
shares convertible bonds, accounting for 0.0008% of the total number of ordinary shares issued by Bank of Jiangsu before
the conversion. The equity ratio of Bank of Jiangsu held by the Company was changed from 5.63319% to 5.63318%.
(ii) As at 31 December 2021, the Group holds 48.27% equity interest of Nanjing Huatai Ruilian No.1 Funds Mergers (Limited
Partnership) (“No.1 Funds Mergers”). Pursuant to the limited partnership agreement, the Group is the co-manager of the
fund, which has a significant influence over the fund. Therefore, it is accounted as an associate of the Group.
Proportion of ownership interest
Name of associate
Registered
place
Registered
capital
Group’s effective
interest
Held by the
Company
Held by a
subsidiary
Principal
activity
Bank of Jiangsu
(i)
Nanjing 14,769,628 5.63% 5.63% -
Commercial
banking
China Southern Asset Management
Co., Ltd.
Shenzhen 361,720 41.16% 41.16% -
Fund
management
Nanjing Huatai Ruilian NO.1 Funds
Mergers (Limited Partnership)
(ii)
Nanjing 5,442,000 48.27% - 48.27%
Equity
investment
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2021
2020
Gross amounts of the associate
Assets
2,618,390,000
2,337,893,000
Liabilities
(2,421,256,731)
(2,155,755,443)
Net assets
197,133,269
182,137,557
Revenue
63,771,000
52,026,000
Profit for the year
20,558,735
15,522,021
Other comprehensive income
965,864
(372,384)
Total comprehensive income
21,524,599
15,149,637
Dividend received from the associate
262,912
177,920
Reconciled to the Group’s interest in the associate:
Net assets of the associate attributable to
the parent company
149,464,135
135,275,105
The Group’s effective interest
5.63%
5.63%
The Group’s share of net assets of the associate
8,387,646
7,588,140
Carrying amount in the consolidated
financial statements
8,387,646
7,588,140
2021
2020
Gross amounts of the associate
Assets
14,159,044
12,009,246
Liabilities
(5,502,501)
(4,168,198)
Net assets
8,656,543
7,841,048
Revenue
7,606,612
5,629,639
Profit for the year
2,162,975
1,484,107
Other comprehensive income
(10,689)
(24,743)
Total comprehensive income
2,152,286
1,459,364
Dividend received from the associate
530,548
277,864
Reconciled to the Group’s interest in the associate:
Net assets of the associate attributable to the parent company
8,417,301
7,625,332
The Group’s effective interest
41.16%
41.16%
The Group’s share of net assets of the associate
3,464,561
3,138,587
Carrying amount in the consolidated financial statements
3,464,561
3,138,587
Summarised financial information of Bank of Jiangsu, China Southern Asset Management Co., Ltd. and NO. 1 Funds Mergers
which are individually significant associates to the Group, and reconciled to the carrying amounts in the consolidated
financial statements, are disclosed below:
Bank of Jiangsu
China Southern Asset Management Co., Ltd.
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HUATAI SECURITIES
NO.1 Funds Mergers
Aggregate information of associates that are not individually material:
2021
2020
Gross amounts of the associate
Assets
5,870,306
8,561,102
Liabilities
(4,282)
-
Net assets
5,866,024
8,561,102
Revenue
270,252
3,227,169
Profit for the year
340,154
3,133,644
Other comprehensive income
-
-
Total comprehensive income
340,154
3,133,644
Dividend received from the associate
74,479
45,506
Reconciled to the Group’s interest in the associate:
Net assets of the associate attributable to the parent company
5,866,024
8,561,102
The Group’s effective interest
48.27%
48.27%
The Group’s share of net assets of the associate
2,831,530
4,132,152
Other adjustment
(141,442)
(100,201)
Carrying amount in the consolidated financial statements
2,690,088
4,031,951
2021
2020
Aggregate carrying amount of individually immaterial associates in the
consolidated financial statements
3,727,164
2,932,483
Aggregate amounts of the Group’s share of those associates’ gains
668,310
1,249,837
Other comprehensive income
-
(502)
Total comprehensive income
668,310
1,249,335
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26 Interest in joint ventures
(i) As at 31 December 2021, the Group held 10.00% equity interest of Huatai Merchant (Jiangsu) Capital Market Investment
Fund of Funds (Limited Partnership). Pursuant to the limited partnership agreement, the Group and the third party
contractually agree to share control of the fund and have rights to the net assets of the fund. The directors of the Group
consider the fund is jointly controlled by the Group and the third party, and it is therefore accounted for as joint venture of
the Group.
(i) The Group elected to measure its investment in Huatai International Greater Bay Area Investment Fund, L.P. of RMB823.29
million held through Huatai Financial Holdings (Hong Kong) Limited, a directly wholly-owned subsidiary, at fair value through
profit or loss as management measured the performance of this joint venture on a fair value basis as at 31 December 2021.
The following list contains only the particulars of unlisted joint venture, which is accounted for using the equity method in
the consolidated financial statements is as follow:
As at 31 December
2021
2020
Unlisted investment in a joint venture at fair
value through profit or loss
(i)
823,289
888,195
Unlisted investment in a joint venture
925,776
753,651
Total
1,749,065
1,641,846
Proportion of ownership interest
Name of joint venture
Registered
place
Registered
capital
Group’s effective
interest
Held by the
Company
Held by a
subsidiary
Principal
activity
Huatai Merchants (Jiangsu)
Capital Market Investment Fund
of Funds (Limited Partnership)
(i)
Nanjing 10,001,000 10.00% - 10.00%
Equity
investment
308
HUATAI SECURITIES
27 Debt investment at amortised cost
(a) Analysed by nature:
Non-current
Current
As at 31 December 2021, the Group has pledged debt investment at amortised cost with a total fair value of RMB25,841
million and carrying amount of RMB25,565 million for the purpose of repurchase agreement business (as at 31 December
2020: a total fair value of RMB25,218 million and carrying amount of RMB25,167 million). The fair value of these securities have
taken into account the relevant features including the restrictions.
As at 31 December
2021
2020
Debt securities
25,302,591
19,244,156
Less: impairment losses
(2,925)
(13,496)
Total
25,299,666
19,230,660
Analysed as:
Listed outside Hong Kong
10,987,272
6,342,628
Listed inside Hong Kong
123,799
189,025
Unlisted
14,188,595
12,699,007
Total
25,299,666
19,230,660
As at 31 December
2021
2020
Debt securities
7,134,040
11,195,920
Less: impairment losses
(12,190)
(15,072)
Total
7,121,850
11,180,848
Analysed as:
Listed outside Hong Kong
3,904,501
3,699,647
Listed inside Hong Kong
-
19,356
Unlisted
3,217,349
7,461,845
Total
7,121,850
11,180,848
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(b) Analysis of the movement of provision for impairment losses:
28 Financial assets at fair value through other comprehensive income
(a) Analysed by nature:
Non-current
As at 31 December
2021
2020
At the beginning of the year
28,568
7,213
Charge for the year
65,042
31,922
Reversal of impairment
(77,948)
(10,567)
Written-off
(547)
-
At the end of the year
15,115
28,568
As at 31 December
2021
2020
Equity investment
Equity securities designated at FVOCI
- Unlisted equity securities
163,138
190,143
- Other unlisted equity investment
-
10,488,274
163,138
10,678,417
Debt investment
Debt securities
4,576,580
3,253,698
Loan and advances
280,704
468,991
Total
5,020,422
14,401,106
Analysed as:
Unlisted
2,716,726
11,180,101
Listed inside Hong Kong
1,346,510
2,319,766
Listed outside Hong Kong
957,186
901,239
Total
5,020,422
14,401,106
310
HUATAI SECURITIES
Current
As at 31 December
2021
2020
Debt investment
Debt securities
3,828,594
1,137,014
Loan and advances
628,821
408,252
Total
4,457,415
1,545,266
Analysed as:
Unlisted
661,390
474,435
Listed inside Hong Kong
858,805
604,646
Listed outside Hong Kong
2,937,220
466,185
Total
4,457,415
1,545,266
For the period ended 31 December 2021, the Group disposed some of the financial assets at fair value through other
comprehensive income, as a result of adjustments in its strategy. The accumulated net realised loss of the financial asset
disposed of was RMB443 thousand (for the period ended 31 December 2020: nil).
As at 31 December 2021, the Group has pledged financial assets at fair value through other comprehensive income with
a total fair value of RMB3,396 million to CSF for the purpose of replacement (as at 31 December 2020: nil). The fair value of
these securities have taken into account the relevant features including the restrictions.
As at 31 December 2021, the Group has pledged financial assets at fair value through other comprehensive income with a
total fair value of RMB2,408 million for the purpose of repurchase agreement business (as at 31 December 2020: nil). The fair
values of these securities have taken into account the relevant features including the restrictions.
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29 Financial assets held under resale agreements
(a) Analysed by collateral type:
Current
(b) Analysed by market:
Current
As at 31 December
2021
2020
Debt securities
6,489,324
13,883,007
Equity securities
6,381,423
6,692,818
Less: impairment losses
(1,118,777)
(1,039,412)
Total
11,751,970
19,536,413
As at 31 December
2021
2020
Inter-bank market
2,807,218
840,974
Shenzhen stock exchange
5,079,673
8,716,535
Shanghai stock exchange
2,311,925
10,616,150
Others
2,671,931
402,166
Less: impairment losses
(1,118,777)
(1,039,412)
Total
11,751,970
19,536,413
(c) Analysis of the movement of provision for impairment losses:
As at 31 December
2021
2020
At the beginning of the year
1,039,412
1,057,550
Charge for the year
296,954
268,519
Reversal of impairment
(216,441)
(286,657)
Written-off
(1,148)
-
At the end of the year
1,118,777
1,039,412
312
HUATAI SECURITIES
(d) Analysed by remaining contractual maturities of securities-backed lendings:
(e) Analysed by the stage of ECL of securities-backed lendings:
As at 31 December
2021
2020
Within 1 month
1,357,437
1,631,622
1 to 3 months
836,464
688,997
3 months to 1 year
4,187,522
4,372,199
Less: impairment losses
(1,069,179)
(1,039,412)
Total
5,312,244
5,653,406
As at 31 December 2021
12-month ECL
Lifetime ECL-not
credit impaired
Lifetime ECL-
credit impaired Total
Amortised cost
5,250,484 - 1,130,939 6,381,423
Impairment losses
(12,440) - (1,056,739) (1,069,179)
Carrying amount
5,238,044 - 74,200 5,312,244
Collateral
20,081,029 - 786,652 20,867,681
As at 31 December 2020
12-month ECL
Lifetime ECL-not
credit impaired
Lifetime ECL-
credit impaired Total
Amortised cost 5,047,694 13,510 1,631,614 6,692,818
Impairment losses (11,996) (135) (1,027,281) (1,039,412)
Carrying amount 5,035,698 13,375 604,333 5,653,406
Collateral 16,323,423 17,414 2,039,804 18,380,641
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30 Financial assets at fair value through profit or loss
Non-current
(a) Analysed by type:
(b) Analysed as:
Current
(a) Analysed by type:
As at 31 December
2021
2020
Equity securities
6,487,136
6,019,789
Debt securities
219,793
355,484
Funds
177,098
39,988
Wealth management products
96,888
60,123
Loan and advances
2,915,424
2,754,139
Total
9,896,339
9,229,523
As at 31 December
2021
2020
Equity securities
115,635,048
57,688,801
Debt securities
160,377,098
187,981,318
Funds
49,457,647
24,369,887
Wealth management products
19,197,235
11,241,881
Loan and advances
695,805
1,295,702
Total
345,362,833
282,577,589
As at 31 December
2021
2020
Listed outside Hong Kong
822,231
1,358,266
Unlisted
9,074,108
7,871,257
Total
9,896,339
9,229,523
314
HUATAI SECURITIES
(b) Analysed as:
As at 31 December
2021
2020
Listed outside Hong Kong
162,578,038
138,088,905
Listed inside Hong Kong
35,365,407
18,995,576
Unlisted
147,419,388
125,493,108
Total
345,362,833
282,577,589
As at 31 December 2021 and 31 December 2020, the fund investments with lock-up periods in its investment portfolio held
by the Group are RMB177 million and RMB55 million, respectively. The fair value of these funds have taken into account the
relevant features including the restrictions.
As at 31 December 2021 and 31 December 2020, the listed equity securities held by the Group included approximately
RMB3,967 million and RMB2,447 million of restricted shares, respectively. The restricted shares are listed in the PRC with a
legally enforceable restriction on these securities that prevents the Group to dispose of within the specified period. The fair
value of these securities have taken into account the relevant features including the restrictions.
The equity interest in unlisted securities held by the Group are issued by private companies. The value of the securities is
measured by comparing with comparable companies that are listed and in the same sector or measured by using other
valuation techniques.
Non-current financial assets at fair value through profit or loss investments are expected to be realised or restricted for
sale beyond one year from the end of the respective reporting periods. The fair value of the Group’s investments in unlisted
funds, which mainly invest in publicly traded equities listed in the PRC, are valued based on the net asset values of the funds
calculated by the respective fund managers by reference to their underlying assets and liabilities’ fair values.
The fair value of the Group’s investments in equity securities without restriction, exchange-listed funds and debt securities
are determined with reference to their quoted prices as at reporting date.
As at 31 December 2021 and 31 December 2020, the Group has entered into securities lending arrangement with clients that
resulted in the transfer of financial assets at fair value through profit or loss investments with total fair value of RMB5,156
million and RMB5,426 million to external clients, respectively, which did not result in derecognition of the financial assets. The
fair value of collaterals for the securities lending business is analysed in Note 36(c) together with the fair value of collaterals
of margin financing business.
As at 31 December 2021 and 31 December 2020, the Group has pledged financial assets at fair value through profit or
loss investments with a total fair value of RMB856 million and RMB1,890 million to CSF for the purpose of replacement,
respectively. The fair value of these securities have taken into account the relevant features including the restrictions.
As at 31 December 2021 and 31 December 2020, the Group has pledged financial assets at fair value through profit or loss
investments with a total fair value of RMB110,282 million and RMB113,003 million for the purpose of repurchase agreement
business, bond lending business and derivative business, respectively. The fair values of these securities have taken into
account the relevant features including the restrictions.
As at 31 December 2021 and 31 December 2020, the wealth management products held by the Group included
approximately RMB105 million and RMB233 million of restricted products, respectively. The restricted products are subscribed
by the Group as the fund manager with a legally enforceable restriction on these products that prevents the Group to
dispose of within the specified period.
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31 Refundable deposits
As at 31 December
2021
2020
Deposits with stock exchanges
- China Securities Depository and Clearing Corporation Limited
954,971
1,197,346
- Hong Kong Exchanges and Clearing Limited
1,226
-
- Hong Kong Securities Clearing Company Limited
60,334
44,638
- Hong Kong Stock Exchange
1,495
926
1,018,026
1,242,910
Deposits with futures and commodity exchanges
- China Financial Futures Exchange
12,116,762
10,042,875
- Shanghai Futures Exchange
3,523,566
2,352,019
- Dalian Commodity Exchange
2,955,805
2,737,945
- Zhengzhou Commodity Exchange
2,210,118
1,685,852
- Shanghai International Energy Exchange
503,373
386,069
- Overseas commodity exchange
34,945
50,918
21,344,569
17,255,678
Deposits with other institutions
- China Securities Finance Corporation Limited
1,626,444
4,784,580
- Shanghai Clearing House
456,280
360,142
- Shanghai Gold Exchange
400
400
- Others financial institutions
3,181,410
1,120,080
5,264,534
6,265,202
Total
27,627,129
24,763,790
316
HUATAI SECURITIES
32 Deferred taxation
(a) The components of deferred tax assets / (liabilities) recognised in the consolidated statements of financial position and the movements during
the year are as follows:
Deferred tax arising from:
Provision for
impairment
losses
Employee
benefits
payable
Changes
in fair value of
financial
instruments
measured at FVTPL
Changes
in fair value of
derivative
financial
instruments
Changes
in fair value of
financial
instruments
measured at FVOCI
Intangible
assets
recognised in
the acquisition Others Total
As at 1 January 2021
857,752 1,782,677 (1,283,850) 181,924 (153,312) (1,174,738) (2,416,598) (2,206,145)
Recognised in profit or loss
123,894 28,356 102,227 58,455 - 64,722 (185,354) 192,300
Acquisition of subsidiary
- - - - - (71,102) - (71,102)
Recognised in reserves
(155) - - - 119,064 - 1,528 120,437
As at 31 December 2021
981,491 1,811,033 (1,181,623) 240,379 (34,248) (1,181,118) (2,600,424) (1,964,510)
As at 1 January 2020 548,666 1,648,863 (1,232,786) (78,052) (94,541) (1,250,141) (1,905,984) (2,363,975)
Recognised in profit or loss 309,086 133,814 (51,064) 259,976 - 75,403 (511,931) 215,284
Acquisition of subsidiaries - - - - - - 1,317 1,317
Recognised in reserves - - - - (58,771) - - (58,771)
As at 31 December 2020 857,752 1,782,677 (1,283,850) 181,924 (153,312) (1,174,738) (2,416,598) (2,206,145)
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(b) Reconciliation to the consolidated statement of financial position
(c) Deferred tax assets not recognised
As at 31 December 2021 and 31 December 2020, in accordance with the accounting policy set out in Note 2(19)(ii), the Group
has not recognised unused tax losses of RMB935 million and RMB878 million, respectively, as deferred tax assets, as it is not
probable that future taxable profits against which the losses can be utilised will be available in the relevant tax jurisdiction
and entity. Most of the tax losses will not expire under current tax legislation.
33 Other non-current assets
(a) Analysed by nature:
(b) The movements of leasehold improvements and long-term deferred expenses are as below:
As at 31 December
2021
2020
Net deferred tax assets recognised in the consolidated
statement of financial position
654,651
339,502
Net deferred tax liabilities recognised in the consolidated
statement of financial position
(2,619,161)
(2,545,647)
Total
(1,964,510)
(2,206,145)
As at 31 December
2021
2020
Leasehold improvements and long-term deferred expenses
282,227
283,320
As at 31 December
2021
2020
At the beginning of the year
283,320
260,669
Additions
41,363
36,999
Transfer in from property and equipment (Note 20)
77,333
73,825
Amortisation
(88,859)
(88,173)
Other decrease
(30,930)
-
At the end of the year
282,227
283,320
318
HUATAI SECURITIES
34 Accounts receivable
(a) Analysed by nature:
(b) Analysed by ageing:
As at the end of the reporting period, the ageing analysis of accounts receivable, based on the trade date, is as follows:
(c) Analysis of the movement of provision for impairment losses:
(d) Accounts receivable that is not impaired
Receivables that were neither past due nor impaired relate to a wide range of customers for whom there was no recent
history of default.
The receivables from securities-backed lendings business are not included in accounts receivable.
As at 31 December
2021
2020
Within 1 month
4,894,477
6,109,005
1 to 3 months
711,876
1,774,958
Over 3 months
4,680,821
1,211,598
Total
10,287,174
9,095,561
As at 31 December
2021
2020
At the beginning of the year
63,300
19,855
Charge for the year
55,689
46,245
Reversal
(21,250)
(2,800)
At the end of the year
97,739
63,300
As at 31 December
2021
2020
Accounts receivable of:
- Return swap and OTC options
5,988,041
4,385,953
- Fee and commission
1,859,488
910,563
- Redemption of open-ended fund
1,007,777
940,017
- Brokers, dealers and clearing house
991,861
2,564,670
- Settlement
444,084
168,810
- Subscription receivable
1,646
112,018
- Others
92,016
76,830
Less: impairment losses
(97,739)
(63,300)
Total
10,287,174
9,095,561
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35 Other receivables and prepayments
(a) Analysed by nature:
(1) Other receivables:
The balance of others mainly represents the amount due from non-controlling shareholders of Huatai United Securities Co.,
Ltd., rental deposit, and sundry receivables arising from normal course of business.
Analysis of the movement of provision for other receivables impairment losses:
As at 31 December
2021
2020
Prepayments
822,411
206,754
Other receivables
(1)
488,998
310,993
Interest receivable
(2)
180,664
161,663
Deductable VAT
76,308
56,165
Deferred expenses
25,211
19,425
Dividends receivable
23,217
15,469
Tax refund
-
63,074
Others
505,437
297,865
Total
2,122,246
1,131,408
As at 31 December
2021
2020
Other receivables
1,254,107
1,109,046
Less: impairment losses
(765,109)
(798,053)
Total
488,998
310,993
As at 31 December
2021
2020
At the beginning of the year
798,053
906,380
Charge for the year
108,789
313,481
Reversal of impairment
(140,202)
(421,808)
Written-off
(1,531)
-
At the end of the year
765,109
798,053
320
HUATAI SECURITIES
(2) Interest receivable:
Analysis of the movement of provision for impairment losses of interest receivable:
As at 31 December
2021
2020
Interest receivable
217,610
195,946
Less: impairment losses
(36,946)
(34,283)
Total
180,664
161,663
As at 31 December
2021
2020
At the beginning of the year
34,283
75,461
Charge for the year
11,013
25,683
Reversal of impairment
(8,350)
(66,861)
At the end of the year
36,946
34,283
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36 Margin accounts receivable
(a) Analysed by nature:
(b) Analysis of the movement of provision for impairment losses:
(c) The fair value of collaterals for margin financing and securities lending business is analysed
as followings:
The Group evaluates the collectability of receivable from margin clients based on management’s assessment on the credit
rating, collateral value and the past collection history of each margin client.
As at 31 December
2021
2020
Individuals
107,203,947
92,398,831
Institutions
11,652,609
11,643,427
Less: impairment losses
(1,914,311)
(1,468,251)
Total
116,942,245
102,574,007
As at 31 December
2021
2020
At the beginning of the year
1,468,251
112,671
Charge for the year
1,371,400
1,377,835
Reversal of impairment
(925,340)
(22,255)
At the end of the year
1,914,311
1,468,251
As at 31 December
2021
2020
Fair value of collaterals:
- Equity securities
409,894,030
345,971,252
- Funds
38,617,145
30,090,346
- Cash
17,893,342
15,637,131
- Debt securities
1,103,497
1,578,121
Total
467,508,014
393,276,850
322
HUATAI SECURITIES
37 Derivative financial instruments
Under the daily mark-to-market and settlement arrangement, any gains or losses of the Group’s position in interest
rate swap contracts settled in with Shanghai Clearing House, stock index futures, and treasury futures settled in China
Financial Future Exchanges and certain commodity futures traded through futures companies, were settled daily and the
corresponding receipts and payments were included in “clearing settlement funds”. Accordingly, the net position of the
above contracts was nil as at 31 December 2021 and 31 December 2020.
As at 31 December 2021
Notional amount Fair value
Assets Liabilities
Interest rate derivatives
672,114,240 90,322 (1,337,816)
Currency derivatives
53,868,333 479,737 (868,927)
Equity derivatives
593,376,992 13,054,672 (10,585,895)
Credit derivatives
3,648,567 410,318 (68)
Others
88,218,718 1,242,478 (809,954)
Total
1,411,226,850 15,277,527 (13,602,660)
Less: settlement
(29,722) 2,959,438
Net position
15,247,805 (10,643,222)
As at 31 December 2020
Notional amount Fair value
Assets Liabilities
Interest rate derivatives 483,283,684 41,333 (1,165,435)
Currency derivatives 69,388,949 173,507 (227,347)
Equity derivatives 238,259,561 6,724,106 (13,243,909)
Credit derivatives 436,626 202 (10,745)
Others 110,314,868 395,648 (576,535)
Total 901,683,688 7,334,796 (15,223,971)
Less: settlement (39,439) 1,825,141
Net position 7,295,357 (13,398,830)
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Cash flow hedges
The Group’s cash flow hedges consist of interest swap contracts that are used to protect against exposures to variability of
future cash flows.
Among the above derivative financial instruments, those designated hedging instruments in cash flow hedges are set out
below:
Details of the Group’s hedged risk exposures in cash flow hedges and the corresponding effect on equities are as follows:
As at 31 December 2021
Notional amount Fair value
Within 3 months
Over 3 months
but within 1 year
Over 1 year but
within 5 years Over 5 years Total Assets Liabilities
Interest rate derivatives
- - 1,275,160 - 1,275,160 - (14,184)
As at 31 December 2020
Notional amount Fair value
Within 3 months
Over 3 months
but within 1 year
Over 1 year but
within 5 years Over 5 years Total Assets Liabilities
Interest rate derivatives - - 1,304,980 - 1,304,980 - (34,348)
As at 31 December 2021
Carrying amount of hedged items
Effect of hedging
instruments
on other
comprehensive
income during the
year
Accumulated
effect of hedging
instruments
on other
comprehensive
income
Line items in the
statement of
financial position
Assets Liabilities
Bonds
- (2,552,586) 20,164 (14,184) Long-term bonds
As at 31 December 2020
Carrying amount of hedged items
Effect of hedging
instruments
on other
comprehensive
income during the
year
Accumulated
effect of hedging
instruments
on other
comprehensive
income
Line items in the
statement of
financial position
Assets Liabilities
Bonds - (2,611,554) (34,348) (34,348) Long-term bonds
324
HUATAI SECURITIES
38 Clearing settlement funds
39 Cash held on behalf of brokerage clients
The Group maintains segregated deposit accounts with banks and authorised institutions to hold clients’ monies arising
from its normal course of business. The Group has classified the brokerage clients’ monies as cash held on behalf of
brokerage clients under the current assets section of the consolidated statement of financial position, and recognised
the corresponding accounts payable to the respective brokerage clients on the grounds that they are liable for any loss
or misappropriation of their brokerage clients’ monies. In the Mainland China, the use of cash held on behalf of brokerage
clients for their transaction and settlement funds is restricted and governed by the relevant third-party deposit regulations
issued by the CSRC. In Hong Kong, the use of cash held on behalf of brokerage clients is restricted and governed by the
Securities and Futures (Client Money) Rules under the Securities and Futures Ordinance.
40 Cash and Bank balances
(a) Analysed by nature:
Bank balances comprise time and demand deposits which bear interest at the prevailing market rates.
(b) Analysis of the movement of provision for impairment losses:
As at 31 December
2021
2020
Deposits with stock exchanges
- China Securities Depository and Clearing Corporation Limited
8,118,615
6,253,766
- Hong Kong Securities Clearing Company Limited
200,287
600,201
Deposits with other institutions
262,039
134,429
Total
8,580,941
6,988,396
As at 31 December
2021
2020
Cash on hand
208
201
Bank balances
37,238,750
49,652,268
Less: impairment losses
(1,157)
(1,430)
Total
37,237,801
49,651,039
As at 31 December
2021
2020
At the beginning of the year
1,430
11,179
Charge for the year
6,264
1,268
Reversal of impairment
(6,537)
(11,017)
At the end of the year
1,157
1,430
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41 Cash and cash equivalents
(a) Cash and cash equivalents comprise:
The restricted bank deposits include bank deposits with original maturity of more than three months held by the Group,
deposits reserved for VAT payable of asset management plans, minimum liquid capital restriction deposits, risk reserve
deposits and securities underwriting brokerage deposits.
As at 31 December
2021
2020
Cash on hand
208
201
Bank balances
37,203,291
49,570,987
Clearing settlement funds
8,580,920
6,988,285
Financial assets held under resale agreements
within 3 months original maturity
4,191,977
13,474,774
Bond investment within 3 months original maturity
388,187
7,061,738
Less: restricted bank deposits
(4,463,221)
(9,449,572)
Total
45,901,362
67,646,413
326
HUATAI SECURITIES
Short-term
debt
instruments
Long-term
bonds
Short-term
bank loans
Long-term
bank loans
Lease
liabilities
Share
capital
Other equity
instruments
Treasury
shares
Capital
reserve
Retained
profits
Non-
controlling
interests Total
At 1 January 2021
43,951,388 97,053,188 11,299,859 475,414 1,248,799 9,076,650 - (1,626,546) 70,750,052 28,998,618 3,240,535 264,467,957
Changes from financing
cash flows
Proceeds from issuance
129,076,996 56,580,701 - 247,402 - - 9,996,425 - - - - 195,901,524
Repayment of borrowings
(119,467,596) (21,310,001) (2,795,165) - - - - - - - - (143,572,762)
Interest paid
(827,947) (3,435,757) (126,999) (22,956) - - - - - - - (4,413,659)
Payment of lease liabilities
- - - - (462,158) - - - - - - (462,158)
Dividend paid
- - - - - - - - - (3,612,549) - (3,612,549)
Acquisition of treasury
shares
- - - - - - - (48,964) - - - (48,964)
Restricted Share Incentive
Scheme of A Shares
- - - - - - - 413,941 - - - 413,941
Total changes from
financing cash flows
8,781,453 31,834,943 (2,922,164) 224,446 (462,158) - 9,996,425 364,977 - (3,612,549) - 44,205,373
Other changes
Interest expenses
865,817 4,450,296 114,595 22,956 48,242 - - - - - - 5,501,906
New leases
- - - - 395,672 - - - - - - 395,672
Total liability-related other
changes
865,817 4,450,296 114,595 22,956 443,914 - - - - - - 5,897,578
Total equity-related other
changes
- - - - - - - 30,022 (187,693) 10,173,710 372,439 10,388,478
At 31 December 2021
53,598,658 133,338,427 8,492,290 722,816 1,230,555 9,076,650 9,996,425 (1,231,547) 70,562,359 35,559,779 3,612,974 324,959,386
(b) Reconciliation of liabilities arising from financing activities:
The following table details changes in the Group’s liabilities from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are liabilities for
which cash flows were, or future cash flows will be, classified in the consolidated statement of cash flows as cash flows from financing activities.
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Short-term
debt
instruments
Long-term
bonds
Short-term
bank loans
Long-term
bank loans
Lease
liabilities
Share
capital
Treasury
shares
Capital
reserve
Retained
profits
Non-controlling
interests Total
At 1 January 2020 46,425,196 64,616,358 5,724,131 850,997 962,441 9,076,650 - 70,290,533 23,178,411 3,117,229 224,241,946
Changes from financing
cash flows
Proceeds from non-
controlling interests
- - - - - - - - - - -
Proceeds from partially
disposal of a subsidiary
without losing control
- - - - - - - - - - -
Proceeds from issuance 147,192,346 47,079,773 5,564,492 - - - - - - - 199,836,611
Repayment of borrowings (149,724,988) (14,317,131) - (371,748) - - - - - - (164,413,867)
Interest paid (769,501) (2,988,523) (28,235) (38,130) - - - - - - (3,824,389)
Payment of lease liabilities - - - - (420,344) - - - - - (420,344)
Dividend paid - - - - - - - - (2,701,395) - (2,701,395)
Acquisition of treasury shares - - - - - - (1,626,546) - - - (1,626,546)
Total changes from
financing cash flows
(3,302,143) 29,774,119 5,536,257 (409,878) (420,344) - (1,626,546) - (2,701,395) - 26,850,070
Other changes
Interest expenses 903,219 2,912,479 230,169 34,295 39,470 - - - - - 4,119,632
New leases - - - - 667,232 - - - - - 667,232
Others (74,884) (249,768) (190,698) - - - - - - - (515,350)
Total liability-related other
changes
828,335 2,662,711 39,471 34,295 706,702 - - - - - 4,271,514
Total equity-related other
changes
- - - - - -
-
459,519 8,521,602 123,306 9,104,427
At 31 December 2020 43,951,388 97,053,188 11,299,859 475,414 1,248,799 9,076,650 (1,626,546) 70,750,052 28,998,618 3,240,535 264,467,957
328
HUATAI SECURITIES
42 Short-term bank loans
As of 31 December 2021, the interest rates for short-term loans were in the range of 0.8% - 1.35% per annum (as of 31
December 2020: 1.28% - 1.92% per annum).
43 Short-term debt instruments issued
As at 31 December 2021
As at 31 December
2021
2020
Credit loans
8,492,290
11,194,654
Pledged loans
-
105,205
Total
8,492,290
11,299,859
Name
Par value Issuance date Due date Issue amount Nominal interest rate
Original currency Original currency
20 HUATAI G5
RMB2,300,000 18/06/2020 18/06/2021 RMB2,300,000 2.58%
20 HUATAI S1
RMB5,500,000 31/08/2020 31/08/2021 RMB5,500,000 3.10%
20 HUATAI S2
RMB1,500,000 31/08/2020 28/05/2021 RMB1,500,000 3.05%
20 HUATAI S3
RMB5,000,000 11/09/2020 11/08/2021 RMB5,000,000 3.20%
20 HUATAI S4
RMB4,000,000 17/09/2020 17/04/2021 RMB4,000,000 3.15%
20 HUATAI CP010
RMB5,000,000 15/12/2020 15/03/2021 RMB4,000,000 2.94%
21 HUATAI CP001
RMB3,000,000 25/01/2021 25/04/2021 RMB3,000,000 2.48%
21 HUATAI CP002
RMB3,000,000 27/01/2021 27/04/2021 RMB3,000,000 2.42%
21 HUATAI CP003
RMB3,000,000 09/03/2021 07/06/2021 RMB3,000,000 2.68%
21 HUATAI CP004
RMB4,000,000 25/06/2021 23/09/2021 RMB4,000,000 2.40%
21 HUATAI CP005
RMB4,000,000 15/07/2021 13/10/2021 RMB4,000,000 2.15%
21 HUATAI CP006
RMB3,000,000 22/07/2021 20/10/2021 RMB3,000,000 2.15%
21 HUATAI S2
RMB4,000,000 28/06/2021 26/09/2021 RMB4,000,000 2.95%
21 HUATAI S3
RMB2,000,000 09/07/2021 22/02/2022 RMB2,000,000 2.75%
21 HUATAI S4
RMB4,000,000 09/07/2021 09/07/2022 RMB4,000,000 2.87%
21 HUATAI S5
RMB3,000,000 19/07/2021 19/07/2022 RMB3,000,000 2.75%
21 HUATAI S6
RMB4,000,000 09/08/2021 11/02/2022 RMB4,000,000 2.55%
21 HUATAI S7
RMB4,000,000 16/08/2021 20/01/2022 RMB4,000,000 2.51%
21 HUATAI S8
RMB3,000,000 26/08/2021 09/11/2021 RMB3,000,000 2.40%
21 HUATAI S9
RMB2,300,000 06/12/2021 08/06/2022 RMB2,300,000 2.64%
21 HUA S10
RMB2,700,000 06/12/2021 25/11/2022 RMB2,700,000 2.70%
21 HUA S11
RMB2,000,000 13/12/2021 13/05/2022 RMB2,000,000 2.62%
21 HUA S12
RMB1,000,000 21/12/2021 21/09/2022 RMB1,000,000 2.70%
21 HUA S13
RMB4,000,000 21/12/2021 21/12/2022 RMB4,000,000 2.75%
21 HUA S14
RMB4,000,000 29/12/2021 29/11/2022 RMB4,000,000 2.75%
HUATAI B2111
USD50,000 27/11/2020 26/11/2021 USD50,000 0.50%
HUATAI B2112
USD60,000 03/02/2021 28/12/2021 USD60,000 1.35%
HUATAI B2108a
USD20,000 10/02/2021 10/08/2021 USD20,000 1.23%
HUATAI B2203
USD100,000 23/03/2021 21/03/2022 USD100,000 0.35%
HUATAI B2108b
USD35,000 12/05/2021 12/08/2021 USD35,000 0.50%
HUATAI B2112b
USD100,000 02/06/2021 02/12/2021 USD100,000 0.60%
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Name
Book value as at
1 January 2021 Increase Decrease
Book value as at
31 December 2021
RMB
equivalent
RMB
equivalent
RMB
equivalent
RMB
equivalent
20 HUATAI G5
2,331,813 27,527 (2,359,340) -
20 HUATAI S1
5,557,300 113,208 (5,670,508) -
20 HUATAI S2
1,515,375 18,937 (1,534,312) -
20 HUATAI S3
5,053,333 97,634 (5,150,967) -
20 HUATAI S4
4,042,000 37,100 (4,079,100) -
20 HUATAI CP010
5,006,847 29,400 (5,036,247) -
21 HUATAI CP001
- 3,018,345 (3,018,345) -
21 HUATAI CP002
- 3,017,901 (3,017,901) -
21 HUATAI CP003
- 3,019,825 (3,019,825) -
21 HUATAI CP004
- 4,023,671 (4,023,671) -
21 HUATAI CP005
- 4,021,205 (4,021,205) -
21 HUATAI CP006
- 3,015,904 (3,015,904) -
21 HUATAI S2
- 4,059,983 - 4,059,983
21 HUATAI S3
- 2,026,317 - 2,026,317
21 HUATAI S4
- 4,054,931 - 4,054,931
21 HUATAI S5
- 3,037,258 - 3,037,258
21 HUATAI S6
- 4,040,306 - 4,040,306
21 HUATAI S7
- 4,037,785 - 4,037,785
21 HUATAI S8
- 3,014,761 (3,014,761) -
21 HUATAI S9
- 2,304,244 - 2,304,244
21 HUA S10
- 2,705,095 - 2,705,095
21 HUA S11
- 2,002,676 - 2,002,676
21 HUA S12
- 1,000,798 - 1,000,798
21 HUA S13
- 4,003,253 - 4,003,253
21 HUA S14
- 4,000,887 - 4,000,887
HUATAI B2111
323,745 1,434 (325,179) -
HUATAI B2112
- 386,378 (386,378) -
HUATAI B2108a
- 128,025 (128,025) -
HUATAI B2203
- 636,859 - 636,859
HUATAI B2108b
- 223,308 (223,308) -
HUATAI B2112b
- 638,159 (638,159) -
HUATAI B2206
- 639,724 - 639,724
HUATAI B2111b
- 245,586 (245,586) -
HUATAI B2203b
- 245,294 - 245,294
HUATAI B2203c
- 191,212 - 191,212
Structured notes
(1)
20,120,975 65,875,960 (71,384,899) 14,612,036
Total
43,951,388 129,940,890 (120,293,620) 53,598,658
Name
Par value Issuance date Due date Issue amount Nominal interest rate
Original currency Original currency
HUATAI B2206
USD100,000 11/06/2021 09/06/2022 USD100,000 0.70%
HUATAI B2111b
HKD300,000 27/08/2021 26/11/2021 HKD300,000 0.50%
HUATAI B2203b
HKD300,000 07/12/2021 10/03/2022 HKD300,000 0.55%
HUATAI B2203c
USD30,000 29/12/2021 29/03/2022 USD30,000 0.65%
Structured notes
(1)
RMB14,605,615 Note (1) Note (1) RMB14,605,615 Note (1)
330
HUATAI SECURITIES
Name
Book value as at
1 January 2020 Increase Decrease
Book value as at
31 December 2020
RMB
equivalent
RMB
equivalent
RMB
equivalent
RMB
equivalent
19 HUATAI CP005 5,031,401 3,394 (5,034,795) -
19 HUATAI CP006 5,019,637 17,863 (5,037,500) -
19 HUATAI CP007 5,011,043 26,088 (5,037,131) -
20 HUATAI CP001 - 6,039,475 (6,039,475) -
20 HUATAI CP002 - 5,032,582 (5,032,582) -
20 HUATAI CP003 - 3,012,538 (3,012,538) -
20 HUATAI CP004 - 4,022,784 (4,022,784) -
20 HUATAI CP005 - 4,011,036 (4,011,036) -
20 HUATAI CP006 - 4,021,699 (4,021,699) -
20 HUATAI CP007 - 4,021,797 (4,021,797) -
20 HUATAI CP008 - 3,017,012 (3,017,012) -
20 HUATAI CP009 - 4,022,784 (4,022,784) -
20 HUATAI CP010 - 5,006,847 - 5,006,847
20 HUATAI G5 - 2,331,813 - 2,331,813
20 HUATAI S1 - 5,557,300 - 5,557,300
20 HUATAI S2 - 1,515,375 - 1,515,375
20 HUATAI S3 - 5,053,333 - 5,053,333
20 HUATAI S4 - 4,042,000 - 4,042,000
HUATAI B2111 - 323,745 - 323,745
Structured notes
(1)
31,363,115 86,941,216 (98,183,356) 20,120,975
Total 46,425,196 148,020,681 (150,494,489) 43,951,388
Name Par value Issuance date Due date Issue amount Nominal interest rate
Original currency Original currency
19 HUATAI CP005 RMB5,000,000 11/10/2019 09/01/2020 RMB5,000,000 2.83%
19 HUATAI CP006 RMB5,000,000 14/11/2019 12/02/2020 RMB5,000,000 3.05%
19 HUATAI CP007 RMB5,000,000 06/12/2019 05/03/2020 RMB5,000,000 3.02%
20 HUATAI CP001 RMB6,000,000 06/01/2020 05/04/2020 RMB6,000,000 2.80%
20 HUATAI CP002 RMB5,000,000 10/02/2020 10/05/2020 RMB5,000,000 2.65%
20 HUATAI CP003 RMB3,000,000 27/02/2020 27/05/2020 RMB3,000,000 2.39%
20 HUATAI CP004 RMB4,000,000 06/03/2020 04/06/2020 RMB4,000,000 2.31%
20 HUATAI CP005 RMB4,000,000 09/06/2020 28/08/2020 RMB4,000,000 1.90%
20 HUATAI CP006 RMB4,000,000 16/06/2020 14/09/2020 RMB4,000,000 2.20%
20 HUATAI CP007 RMB4,000,000 15/07/2020 13/10/2020 RMB4,000,000 2.55%
20 HUATAI CP008 RMB3,000,000 14/08/2020 12/11/2020 RMB3,000,000 2.62%
20 HUATAI CP009 RMB4,000,000 15/09/2020 14/12/2020 RMB4,000,000 2.70%
20 HUATAI CP010 RMB5,000,000 15/12/2020 15/03/2021 RMB5,000,000 2.94%
20 HUATAI G5 RMB2,300,000 18/06/2020 18/06/2021 RMB2,300,000 2.58%
20 HUATAI S1 RMB5,500,000 31/08/2020 31/08/2021 RMB5,500,000 3.10%
20 HUATAI S2 RMB1,500,000 31/08/2020 28/05/2021 RMB1,500,000 3.05%
20 HUATAI S3 RMB5,000,000 11/09/2020 11/08/2021 RMB5,000,000 3.20%
20 HUATAI S4 RMB4,000,000 17/09/2020 17/04/2021 RMB4,000,000 3.15%
HUATAI B2111 USD50,000 27/11/2020 26/11/2021 USD50,000 0.50%
Structured notes
(1)
RMB20,070,414 Note (1) Note (1) RMB20,070,414 Note (1)
As at 31 December 2020
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(1) In 2021, the Company has issued 3,849 tranches (2020: 3,712 tranches) of structured notes, bearing interest ranging from
2.00% to 6.58% per annum (2020: 2.40% to 6.58% per annum), repayable within 1 year. Structured notes repayable more than
1 year are classified as “Long-term bonds” (Note 52).
44 Placements from other financial institutions
As at 31 December 2021, the placements from banks are unsecured, bearing interest of 0.25% - 3.10% per annum, with
maturities within 132 days (as at 31 December 2020: bearing interest of 0.50% - 3.15% per annum, with maturities within 76
days).
Current
As at 31 December
2021
2020
Placements from banks
14,018,721
4,815,236
45 Accounts payable to brokerage clients
Current
Accounts payable to brokerage clients represent the monies received from and repayable to brokerage clients, which are
mainly held at banks and at clearing houses by the Group. Accounts payable to brokerage clients are interest-bearing at
the prevailing interest rate.
The majority of the accounts payable balances are repayable on demand except where certain accounts payable to
brokerage clients represent monies received from clients for their margin financing activities under normal course of
business, such as margin financing and securities lending. Only the excess amounts over the required margin deposits and
cash collateral stipulated are repayable on demand.
No aging analysis is disclosed as in the opinion of the directors of the Company, the aging analysis does not give additional
value in view of the nature of these businesses.
As at 31 December
2021
2020
Clients’ deposits for brokerage trading
127,624,066
118,432,619
Clients’ deposits for margin financing and securities lending
19,877,767
17,955,015
Total
147,501,833
136,387,634
332
HUATAI SECURITIES
46 Employee benefits payable
Non-current
Current
As at 31 December
2021
2020
Salaries, bonuses and allowance
7,057,339
6,974,615
As at 31 December
2021
2020
Salaries, bonuses and allowance
5,330,529
3,838,638
Contribution to pension scheme
3,371
2,445
Other social welfare
423,698
315,812
Total
5,757,598
4,156,895
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47 Other payables and accruals
Non-current
(1) During the year of 2021, in accordance with the accounting policy set out in Note 2(20)(i), the Group has elected not to
recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases, which amounted to
RMB41 million (2020: RMB78 million).
(2) As at 31 December 2021, the cash flows of lease contracts signed by the Group but lease not yet commenced are
insignificant.
Current
(1) The financial liabilities arising from the consolidated structured entities with underlying investments in money market
and fixed income instruments are classified as other payables and accruals in these consolidated financial statements. It is
because the Group has an obligation to pay other investors upon maturity dates of the structured entities based on the net
book value and related terms of those consolidated asset management schemes. As at 31 December 2021, the decrease of
payables to interest holders of consolidated structured entities mainly results from the decrease of the total assets of the
structured entities consolidated. (See Note 56(a)).
(2) The balance of others mainly represents payable to brokerage agents and sundry payables arising from normal course
of business.
As at 31 December
2021
2020
Lease liabilities
900,299
850,730
As at 31 December
2021
2020
Trade payable
84,166,271
36,314,244
Payable to brokers, dealers and clearing house
13,443,598
5,131,183
Payable to open-ended funds
5,441,731
1,810,719
Other tax payable
790,446
674,394
Restrictive repurchase obligation
395,746
-
Dividend payable of pledged exchangeable bond
372,768
1,178,430
Lease liabilities
330,256
398,069
Fee and commission payable
253,680
260,483
Futures risk reserve
178,120
144,622
Payable to outsourcing service
120,474
87,655
Payable to the securities investor protection fund
68,238
57,173
Payable to interest holders of consolidated structured entities
(1)
44,954
59,032,383
Funds payable to securities issuers
38,747
70,930
Payable for office building construction
35,315
56,571
Redemption payables
26,761
27,215
Dividend payable
13,097
28,192
Others
(2)
900,553
608,048
Total
106,620,755
105,880,311
334
HUATAI SECURITIES
48 Contract liabilities
49 Financial assets sold under repurchase agreements
(a) Analysed by collateral type:
As at 31 December 2021, the Group’s pledged collateral in connection with financial assets sold under repurchase
agreements amounted to RMB144,064 million (as at 31 December 2020: RMB158,284 million).
(b) Analysed by market:
As at 31 December
2021
2020
Advance consideration received from customers
265,637
92,366
As at 31 December
2021
2020
Debt securities
104,067,070
111,403,580
Equity securities
17,565,523
9,631,494
Precious metal
9,077,408
18,564,573
Margin loans receivable backed repurchase
-
300,321
Total
130,710,001
139,899,968
As at 31 December
2021
2020
Shanghai stock exchange
26,817,766
47,838,283
Inter-bank market
60,896,105
45,930,433
Over-the-counter
36,936,138
37,114,141
Shenzhen stock exchange
6,059,992
9,017,111
Total
130,710,001
139,899,968
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50 Financial liabilities at fair value through profit or loss
Non-current
In the consolidated financial statements, the financial liabilities arising from consolidation of structured entities and private
funds with the underlying investments related to listed equity investments in active markets and unlisted equity investments
are designated at fair value through profit or loss by the Group, as the Group has the obligation to pay other investors
or limited partners upon maturity dates of the structured entities based on net book value and related terms of those
consolidated asset management schemes or private equity funds.
As at 31 December 2021 and 31 December 2020, there were no significant fair value changes related to the changes in the
credit risk of the Group, respectively.
Current
As at 31 December
2021
2020
Financial liabilities designated at fair value through profit or loss
2,833,456
3,185,296
As at 31 December
2021
2020
Financial liabilities held for trading
27,171,191
11,469,173
Financial liabilities designated at fair value through profit or loss
1,118,271
727,061
Total
28,289,462
12,196,234
336
HUATAI SECURITIES
51 Long-term bonds due within one year
As at 31 December 2021
Name
Par value Issuance date Due date Issue amount Nominal interest rate
Original currency Original currency
16 HUATAI G2
RMB2,500,000 06/12/2016 06/12/2021 RMB2,500,000 3.78%
16 HUATAI G4
RMB3,000,000 14/12/2016 14/12/2021 RMB3,000,000 3.97%
18 HUATAI C2
RMB2,800,000 10/05/2018 10/05/2021 RMB2,800,000 5.20%
18 HUATAI G1
RMB3,000,000 26/11/2018 26/11/2021 RMB3,000,000 3.88%
19 HUATAI G1
RMB7,000,000 19/03/2019 19/03/2022 RMB7,000,000 3.68%
19 HUATAI G3
RMB5,000,000 22/04/2019 22/04/2022 RMB5,000,000 3.80%
19 HUATAI 02
RMB5,000,000 27/05/2019 27/05/2022 RMB5,000,000 3.94%
19 HUATAI 03
RMB4,000,000 24/10/2019 24/10/2022 RMB4,000,000 3.68%
19 Finance 01
RMB6,000,000 21/08/2019 21/08/2022 RMB6,000,000 3.40%
20 HUATAI G8
RMB4,000,000 09/12/2020 09/12/2022 RMB4,000,000 3.67%
HUATAI B2205
USD500,000 16/05/2019 16/05/2022 USD500,000 3.38%
Structured notes
(1)
RMB613,940 Note (1) Note (1) RMB613,940 Note (1)
Name
Book value as at
1 January 2021 Increase Decrease
Book value as at
31 December 2021
RMB
equivalent
RMB
equivalent
RMB
equivalent
RMB
equivalent
16 HUATAI G2
2,508,601 84,497 (2,593,098) -
16 HUATAI G4
3,006,354 108,368 (3,114,722) -
18 HUATAI C2
2,893,742 48,335 (2,942,077) -
18 HUATAI G1
3,010,179 98,057 (3,108,236) -
19 HUATAI G1
- 7,459,426 (257,600) 7,201,826
19 HUATAI G3
- 5,320,878 (190,000) 5,130,878
19 HUATAI 02
- 5,313,891 (197,000) 5,116,891
19 HUATAI 03
- 4,173,848 (147,200) 4,026,648
19 Finance 01
- 6,277,407 (204,000) 6,073,407
20 HUATAI G8
- 4,155,505 (146,800) 4,008,705
HUATAI B2205
- 3,285,482 (86,888) 3,198,594
Structured notes
(1)
10,017 615,686 (10,344) 615,359
Total
11,428,893 36,941,380 (12,997,965) 35,372,308
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As at 31 December 2020
Name Par value Issuance date Due date Issue amount Nominal interest rate
Original currency Original currency
16 HUATAI G2 RMB2,500,000 06/12/2016 06/12/2021 RMB2,500,000 3.78%
16 HUATAI G4 RMB3,000,000 14/12/2016 14/12/2021 RMB3,000,000 3.97%
17 HUATAI 02 RMB2,000,000 24/02/2017 24/02/2020 RMB2,000,000 4.65%
17 HUATAI 04 RMB6,000,000 15/05/2017 15/05/2020 RMB6,000,000 5.25%
17 HUATAI C2 RMB5,000,000 27/07/2017 27/07/2020 RMB5,000,000 4.95%
18 HUATAI C1 RMB1,000,000 15/03/2018 15/03/2020 RMB1,000,000 5.65%
18 HUATAI C2 RMB2,800,000 10/05/2018 10/05/2021 RMB2,800,000 5.20%
18 HUATAI G1 RMB3,000,000 26/11/2018 26/11/2021 RMB3,000,000 3.88%
HUATAI B2006 USD14,757 30/05/2019 02/06/2020 USD14,757 4.00%
Structured notes
(1)
RMB190,360 Note (1) Note (1) RMB190,360 Note (1)
Name
Book value as at
1 January 2020 Increase Decrease
Book value as at
31 December 2020
RMB
equivalent
RMB
equivalent
RMB
equivalent
RMB
equivalent
16 HUATAI G2 - 2,603,101 (94,500) 2,508,601
16 HUATAI G4 - 3,125,454 (119,100) 3,006,354
17 HUATAI 02 2,078,732 7,750 (2,086,482) -
17 HUATAI 04 6,198,493 105,000 (6,303,493) -
17 HUATAI C2 5,107,815 123,750 (5,231,565) -
18 HUATAI C1 1,044,090 9,497 (1,053,587) -
18 HUATAI C2 - 3,039,342 (145,600) 2,893,742
18 HUATAI G1 - 3,126,579 (116,400) 3,010,179
HUATAI B2006 105,345 3,305 (108,650) -
Structured notes
(1)
182,058 11,448 (183,489) 10,017
Total 14,716,533 12,155,226 (15,442,866) 11,428,893
(1) As at 31 December 2021, RMB615.36 million of structured notes would mature within one year (as at 31 December 2020:
RMB10.02 million).
338
HUATAI SECURITIES
52 Long-term bonds
As at 31 December 2021
Name
Par value Issuance date Due date Issue amount Nominal interest rate
Original currency Original currency
13 HUATAI 02
RMB6,000,000 05/06/2013 05/06/2023 RMB6,000,000 5.10%
18 HUATAI G2
RMB1,000,000 26/11/2018 26/11/2023 RMB1,000,000 4.17%
19 HUATAI G1
RMB7,000,000 19/03/2019 19/03/2022 RMB7,000,000 3.68%
19 HUATAI G3
RMB5,000,000 22/04/2019 22/04/2022 RMB5,000,000 3.80%
19 HUATAI 02
RMB5,000,000 27/05/2019 27/05/2022 RMB5,000,000 3.94%
19 HUATAI 03
RMB4,000,000 24/10/2019 24/10/2022 RMB4,000,000 3.68%
19 Finance 01
RMB6,000,000 21/08/2019 21/08/2022 RMB6,000,000 3.40%
20 HUATAI G1
RMB8,000,000 26/03/2020 26/03/2023 RMB8,000,000 2.99%
20 HUATAI G3
RMB3,500,000 29/04/2020 29/04/2025 RMB3,500,000 2.90%
20 HUATAI G4
RMB3,000,000 21/05/2020 21/05/2025 RMB3,000,000 3.20%
20 HUATAI G6
RMB3,200,000 18/06/2020 18/06/2023 RMB3,200,000 3.10%
20 HUATAI G7
RMB3,500,000 24/11/2020 24/11/2023 RMB3,500,000 3.90%
20 HUATAI G8
RMB4,000,000 09/12/2020 09/12/2022 RMB4,000,000 3.67%
20 HUATAI G9
RMB4,000,000 09/12/2020 09/12/2023 RMB4,000,000 3.79%
20 HUATAI 02
RMB10,000,000 24/07/2020 24/07/2022 RMB10,000,000 3.20%
20 HUATAI C1
RMB5,000,000 13/11/2020 13/11/2025 RMB5,000,000 4.48%
21 HUATAI G1
RMB4,000,000 20/01/2021 20/01/2024 RMB4,000,000 3.58%
21 HUATAI G3
RMB5,000,000 26/04/2021 26/04/2024 RMB5,000,000 3.42%
21 HUATAI G4
RMB6,000,000 17/05/2021 17/05/2026 RMB6,000,000 3.71%
21 HUATAI G5
RMB4,000,000 24/05/2021 24/05/2024 RMB4,000,000 3.28%
21 HUATAI G6
RMB2,000,000 24/05/2021 24/05/2026 RMB2,000,000 3.63%
21 HUATAI G7
RMB2,000,000 15/06/2021 15/06/2024 RMB2,000,000 3.40%
21 HUATAI 09
RMB2,500,000 21/06/2021 21/06/2024 RMB2,500,000 3.45%
21 HUATAI C1
RMB9,000,000 29/01/2021 29/01/2026 RMB9,000,000 4.50%
21 HUATAI 11
RMB1,500,000 07/09/2021 07/09/2024 RMB1,500,000 3.03%
21 HUATAI 12
RMB2,700,000 07/09/2021 07/09/2031 RMB2,700,000 3.78%
21 HUATAI 13
RMB2,100,000 18/10/2021 18/10/2024 RMB2,100,000 3.25%
21 HUATAI 14
RMB3,400,000 18/10/2021 18/10/2031 RMB3,400,000 3.99%
21 HUATAI 15
RMB2,200,000 25/10/2021 25/10/2024 RMB2,200,000 3.22%
21 HUATAI 16
RMB1,100,000 25/10/2021 25/10/2031 RMB1,100,000 3.94%
HUATAIB2205
USD500,000 16/05/2019 16/05/2022 USD500,000 3.38%
HUATAIB2302
USD400,000 12/02/2020 12/02/2023 USD400,000 LIBOR+0.95%
HUATAIB2404
USD900,000 09/04/2021 09/04/2024 USD900,000 1.30%
HUATAIB2604
USD500,000 09/04/2021 09/04/2026 USD500,000 2.00%
Structured notes
(1)
RMB143,400 Note (1) Note (1) RMB143,400 Note (1)
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Name
Book value as at
1 January 2021 Increase Decrease
Book value as at
31 December 2021
RMB
equivalent
RMB
equivalent
RMB
equivalent
RMB
equivalent
13 HUATAI 02
6,171,490 310,785 (306,000) 6,176,275
18 HUATAI G2
1,003,413 41,961 (41,700) 1,003,674
19 HUATAI G1
7,199,048 - (7,199,048) -
19 HUATAI G3
5,129,536 - (5,129,536) -
19 HUATAI 02
5,115,539 - (5,115,539) -
19 HUATAI 03
4,025,007 - (4,025,007) -
19 Finance 01
6,072,453 - (6,072,453) -
20 HUATAI G1
8,177,637 241,673 (239,200) 8,180,110
20 HUATAI G3
3,565,376 102,129 (101,500) 3,566,005
20 HUATAI G4
3,056,359 96,611 (96,076) 3,056,894
20 HUATAI G6
3,250,725 99,540 (99,200) 3,251,065
20 HUATAI G7
3,512,736 137,090 (136,500) 3,513,326
20 HUATAI G8
4,008,066 - (4,008,066) -
20 HUATAI G9
4,008,443 152,019 (151,600) 4,008,862
20 HUATAI 02
10,132,432 160,618 (10,293,050) -
20 HUATAI C1
5,025,058 225,933 (224,000) 5,026,991
21 HUATAI G1
4,137,065 (3,860) 4,133,205
21 HUATAI G3
5,117,432 (4,825) 5,112,607
21 HUATAI G4
6,139,497 (5,791) 6,133,706
21 HUATAI G5
4,080,108 (3,860) 4,076,248
21 HUATAI G6
2,044,128 (1,930) 2,042,198
21 HUATAI G7
2,037,360 (1,930) 2,035,430
21 HUATAI 09
2,545,931 (2,413) 2,543,518
21 HUATAI C1
9,376,680 (9,382) 9,367,298
21 HUATAI 11
1,514,497 (1,027) 1,513,470
21 HUATAI 12
2,732,368 (1,849) 2,730,519
21 HUATAI 13
2,113,972 (436) 2,113,536
21 HUATAI 14
3,427,728 (706) 3,427,022
21 HUATAI 15
2,213,167 (457) 2,212,710
21 HUATAI 16
1,108,042 (228) 1,107,814
HUATAIB2205
3,274,424 - (3,274,424) -
HUATAIB2302
2,611,554 4,635 (63,603) 2,552,586
HUATAIB2404
- 5,780,545 (37,298) 5,743,247
HUATAIB2604
- 3,226,282 (31,879) 3,194,403
Structured notes
(1)
284,999 140,401 (282,000) 143,400
Total
85,624,295 59,308,197 (46,966,373) 97,966,119
340
HUATAI SECURITIES
As at 31 December 2020
Name Par value Issuance date Due date Issue amount Nominal interest rate
Original currency Original currency
13 HUATAI 02 RMB6,000,000 05/06/2013 05/06/2023 RMB6,000,000 5.10%
16 HUATAI G2 RMB2,500,000 06/12/2016 06/12/2021 RMB2,500,000 3.78%
16 HUATAI G4 RMB3,000,000 14/12/2016 14/12/2021 RMB3,000,000 3.97%
18 HUATAI C2 RMB2,800,000 10/05/2018 10/05/2021 RMB2,800,000 5.20%
18 HUATAI G1 RMB3,000,000 26/11/2018 26/11/2021 RMB3,000,000 3.88%
18 HUATAI G2 RMB1,000,000 26/11/2018 26/11/2023 RMB1,000,000 4.17%
19 HUATAI G1 RMB7,000,000 19/03/2019 19/03/2022 RMB7,000,000 3.68%
19 HUATAI G3 RMB5,000,000 22/04/2019 22/04/2022 RMB5,000,000 3.80%
19 HUATAI 02 RMB5,000,000 27/05/2019 27/05/2022 RMB5,000,000 3.94%
19 HUATAI 03 RMB4,000,000 24/10/2019 24/10/2022 RMB4,000,000 3.68%
19 Finance 01 RMB6,000,000 21/08/2019 21/08/2022 RMB6,000,000 3.40%
20 HUATAI C1 RMB5,000,000 13/11/2020 13/11/2025 RMB5,000,000 4.48%
20 HUATAI G1 RMB8,000,000 26/03/2020 26/03/2023 RMB8,000,000 2.99%
20 HUATAI G3 RMB3,500,000 29/04/2020 29/04/2025 RMB3,500,000 2.90%
20 HUATAI G4 RMB3,000,000 21/05/2020 21/05/2025 RMB3,000,000 3.20%
20 HUATAI G6 RMB3,200,000 18/06/2020 18/06/2023 RMB3,200,000 3.10%
20 HUATAI G7 RMB3,500,000 24/11/2020 24/11/2023 RMB3,500,000 3.90%
20 HUATAI G8 RMB4,000,000 09/12/2020 09/12/2022 RMB4,000,000 3.67%
20 HUATAI G9 RMB4,000,000 09/12/2020 09/12/2023 RMB4,000,000 3.79%
20 HUATAI 02 RMB10,000,000 24/07/2020 24/07/2022 RMB10,000,000 3.20%
HUATAIB2205 USD500,000 16/05/2019 16/05/2022 USD500,000 3.38%
HUATAIB2302 USD400,000 12/02/2020 12/02/2023 USD400,000 LIBOR+0.95%
Structured notes
(1)
RMB312,000 Note (1) Note (1) RMB312,000 Note (1)
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Name
Book value as at
1 January 2020 Increase Decrease
Book value as at
31 December 2020
RMB
equivalent
RMB
equivalent
RMB
equivalent
RMB
equivalent
13 HUATAI 02 6,170,097 307,393 (306,000) 6,171,490
16 HUATAI G2 2,507,113 - (2,507,113) -
16 HUATAI G4 3,006,353 - (3,006,353) -
18 HUATAI C2 2,892,934 - (2,892,934) -
18 HUATAI G1 3,009,336 - (3,009,336) -
18 HUATAI G2 1,003,252 41,861 (41,700) 1,003,413
19 HUATAI G1 7,196,883 259,765 (257,600) 7,199,048
19 HUATAI G3 5,128,000 191,536 (190,000) 5,129,536
19 HUATAI 02 5,114,007 198,532 (197,000) 5,115,539
19 HUATAI 03 4,023,800 148,407 (147,200) 4,025,007
19 Finance 01 6,071,533 204,920 (204,000) 6,072,453
20 HUATAI C1 - 5,029,728 (4,670) 5,025,058
20 HUATAI G1 - 8,185,109 (7,472) 8,177,637
20 HUATAI G3 - 3,568,645 (3,269) 3,565,376
20 HUATAI G4 - 3,059,161 (2,802) 3,056,359
20 HUATAI G6 - 3,253,475 (2,750) 3,250,725
20 HUATAI G7 - 3,513,826 (1,090) 3,512,736
20 HUATAI G8 - 4,008,844 (778) 4,008,066
20 HUATAI G9 - 4,009,221 (778) 4,008,443
20 HUATAI 02 - 10,140,808 (8,376) 10,132,432
HUATAIB2205 3,497,217 12,183 (234,976) 3,274,424
HUATAIB2302 - 2,831,582 (220,028) 2,611,554
Structured notes
(1)
279,300 38,000 (32,301) 284,999
Total 49,899,825 49,002,996 (13,278,526) 85,624,295
(1) The Company has issued 30 tranches of long-term structured notes for the year ended 31 December 2021 (as at 31
December 2020: 4 tranches). As at 31 December 2021, 14 tranches of long-term structured notes due within one year are
classified as “Long-term bonds due within one year” (as at 31 December 2020: 2 tranches) (Note 51).
342
HUATAI SECURITIES
53 Long-term bank loans
(a) Analysed by nature:
(b) Analysed by maturity:
As at 31 December
2021
2020
Credit bank loans
722,816
475,414
Less: credit bank loans due within one year
-
-
Total
722,816
475,414
As at 31 December
2021
2020
Maturity within five years
722,816
475,414
Maturity over five years
-
-
Total
722,816
475,414
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54 Share capital, reserves and retained profits
(a) Movements in components of equity
The reconciliation between the opening and closing balances of each component of the Group’s consolidated equity is set out in the consolidated statement of changes in equity. Details
of the changes in the Company’s individual components of equity between the beginning and the end of the year are set out below:
Reserves
Note Share capital
Other equity
instruments Treasury shares Capital reserve Surplus reserve General reserve
Fair value
reserve
Translation
reserve Retained profits Total
As at 1 January 2021 9,076,650 - (1,626,546) 69,229,342 5,711,067 11,634,395 323,174 18,981 17,604,448 111,971,511
Changes in equity for 2021
Profit for the year
- - - - - - - - 8,588,552 8,588,552
Other comprehensive income
- - - - - - (303,036) - - (303,036)
Total comprehensive income
- - - - - - (303,036) - 8,588,552 8,285,516
Issue of perpetual bonds
- 9,989,057 - - - - - - - 9,989,057
Equity-settled share-based
payments
- - 443,963 (326,459) - - - - - 117,504
Acquisition of treasury shares
- - (48,964) - - - - - - (48,964)
Appropriation to surplus reserve
- - - - 858,855 - - - (858,855) -
Appropriation to general reserve
- - - - - 1,718,064 - - (1,718,064) -
Dividends declared for the year
- - - - - - - - (3,612,549) (3,612,549)
Others
- - - 7 - - - - - 7
As at 31 December 2021
63
9,076,650 9,989,057 (1,231,547) 68,902,890 6,569,922 13,352,459 20,138 18,981 20,003,532 126,702,082
344
HUATAI SECURITIES
Reserves
Note Share capital Treasury shares Capital reserve Surplus reserve General reserve Fair value reserve Translation reserve Retained profits Total
As at 1 January 2020
9,076,650 - 69,229,337 5,118,691 10,449,289 203,556 18,981 16,159,562 110,256,066
Changes in equity for 2020
Profit for the year - - - - - - - 5,923,763 5,923,763
Other comprehensive income - - - - - 119,618 - - 119,618
Total comprehensive income - - - - - 119,618 5,923,763 5,923,763 6,043,381
Acquisition of treasury shares - (1,626,546) - - - - - - (1,626,546)
Appropriation to surplus reserve - - - 592,376 - - - (592,376) -
Appropriation to general reserve - - - - 1,185,106 - - (1,185,106) -
Dividends declared for the year - - - - - - - (2,701,395) (2,701,395)
Others - - 5 - - - - - 5
As at 31 December 2020
63 9,076,650 (1,626,546) 69,229,342 5,711,067 11,634,395 323,174 18,981 17,604,448 111,971,511
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(b) Share capital
All shares issued by the Company are fully paid common shares. The par value per share is RMB1. The Company’s number
of shares issued and their nominal value are as follows:
As at 31 December 2021
As at 31 December 2020
Number
of shares Nominal value
Number
of shares Nominal value
(Thousand)
(Thousand)
Registered, issued and fully paid:
A shares of RMB1 each
7,357,604 7,357,604
7,357,604 7,357,604
H shares of RMB1 each
1,719,046 1,719,046
1,719,046 1,719,046
Total
9,076,650 9,076,650
9,076,650 9,076,650
On 1 June 2015, the Company completed its initial public offering of 1,400,000,000 H shares on the Main Board of the Hong
Kong Stock Exchange. On 19 June 2015, the Company partially exercised the over-allotment option and issued 162,768,800 H
shares.
According to the relevant requirements of PRC regulators, existing shareholders of the state-owned shares of the Company
have transferred an aggregate number of 156,276,880 state-owned shares of the Company to the National Social Security
Fund of the PRC, and such shares were then converted into H shares on a one-for-one basis.
In July 2018, the Company completed private placement of issuance of 1,088,731,200 new A shares.
On 20 June 2019, the Company completed its issuance of 75,013,636 GDRs, representing 750,136,360 underlying A shares,
and listed on the London Stock Exchange. On 27 June 2019, the Company exercised the over-allotment option and issued
additional 7,501,364 GDRs, representing 75,013,640 underlying A shares. In total, the Company has issued 82,515,000 GDRs,
representing 825,150,000 new A shares with nominal value of RMB1.00 each. The total paid-up share capital of the Company
after the change is RMB9,076,650,000.
The H shares and GDRs representing A shares rank pari passu in all respects with the existing A shares including the right to
receive all dividends and distributions declared or made.
(c) Other equity instruments
As at 31 December
2021
2020
Perpetual subordinated bonds
9,996,425
-
346
HUATAI SECURITIES
As approved by the CSRC, the Company issued three batches of perpetual subordinated bonds (“21 Huatai Y1”, “21 Huatai Y2”
and “21 Huatai Y3”) with an initial interest rate of 3.85%, 4.00%, 3.80% on 15 September 2021, 26 October 2021 and 16 November
2021, respectively. The perpetual subordinated bonds have no fixed maturity dates and the Company has an option
to redeem the bonds at principal amounts plus any accrued interest on the fifth interest payment date or any interest
payment date afterwards.
The interest rate for perpetual subordinated bonds is fixed in the first 5 years and will be repriced every 5 years. The repriced
interest rate is determined as the sum of the current base rate and the initial spread plus 300bp. The current base rate is
defined as the average yield of 5 years treasury from the interbank fixed rate bond yield curve published on China Bond
webpage 5 working days before the adjustment.
The issuer has the option to defer interest payment, except in the event of mandatory interest payments, so that at each
interest payment date, the issuer may choose to defer the interest payment to the next payment date for the current period
as well as all interest and accreted interest already deferred, without being subject to any limitation with respect to the
number of deferrals. Of which, mandatory interest payment events are limited to dividend distributions to ordinary equity
holders and reductions of registered capital. As of 31 December 2021, the Company does not recognise any interest payable
to the perpetual subordinated bonds in dividend payable.
The perpetual subordinated bonds issued by the Company are classified as equity instruments and presented under equity
in the Group’s statement of financial position.
(d) Treasury shares
As at
1 January 2021
Increase
for the year
Decrease
for the year
As at
31 December 2021
Share repurchase
1,626,546 48,964 (839,708) 835,802
Restricted Share Incentive
Scheme of A Shares
- 413,941 (18,196) 395,745
Total
1,626,546 462,905 (857,904) 1,231,547
On 30 March 2020, the fifth meeting of the fifth session of the Board of the Company approved the Resolution on
Repurchase of A Shares through Centralized Price Bidding, planned to repurchase no less than 45,383,250 A shares and
no more than 90,766,500 A shares in the next 12 months, which will be used for Restricted Share Incentive Scheme of A
Shares. On 8 January 2021, the Company completed the repurchase. During the repurchase period, the Company has
accumulatively made an actual repurchase of 90,766,495 A Shares of the Company.
On 23 March 2021, the Company convened the fourteenth meeting of the fifth session of the Board and the eighth meeting
of the fifth session of the Supervisory Committee, at which the Resolution on Adjustment to the Matters Pertaining to
the Restricted Share Incentive Scheme of A Shares of the Company and the Resolution on Granting Restricted A Shares
to Incentive Participants were considered and approved to set out the Grant Date on 29 March 2021, when 45,488,000
restricted A Shares were granted to 810 eligible Incentive Participants at the Grant Price of RMB9.10 per share. On 30 March
2021, the Company received RMB414 million subscription funds paid by 810 incentive participants. The funds have been
verified by an accounting firm and a capital verification report has been issued.
On 22 June 2021, pursuant to the resolution of the 2020 Annual General Meeting of Shareholders, cash dividend of RMB4.00
(tax included) per 10 shares was distributed based on 9,076,650,000 shares deducting the actual number of shares entitled
to the dividend distribution (exclusive of A shares of the Company in the repurchased securities account). The total
amount of RMB18 million cash dividends was distributed to 810 incentive participants. According to the Restricted Share
Incentive Scheme of A Shares Plan, before the restricted shares unlocked, the incentive participants are eligible to receive
the cash dividend (after tax). If the conditions for unlocking are not satisfied, the Company has the obligation to repurchase
the shares. Due to the dividend is revocable, once the unlocking conditions are not met, the incentive participants need to
return the cash dividend which they have received in waiting period. Therefore, the share repurchase’s obligation is reduced
accordingly by RMB18 million.
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(e) Capital reserve
Capital reserve mainly includes share premium arising from the issuance of new shares at prices in excess of face value
and the difference between the considerations of acquisition of equity interests from non-controlling shareholders and the
carrying amount of the proportionate net assets.
(f) Surplus reserve
Pursuant to the Company Law of the PRC, the Company is required to appropriate 10% of its net profit to the statutory
surplus reserve until the balance reaches 50% of its registered capital.
Subject to the approval of the shareholders, the statutory reserve may be used to offset accumulated losses, or converted
into capital of provided that the balance of the statutory surplus reserve after such capitalisation is not less than 25% of the
registered capital immediately before the capitalisation.
(g) General reserve
General reserve includes general risk reserve and transaction risk reserve.
In accordance with the requirements of the CSRC Circular regarding the Annual Reporting of Securities Companies in 2007
(Zhengjian Jigou Zi [2007] No. 320) issued on 18 December 2007, the Company appropriates 10% of its annual net profit to
the general risk reserve.
In accordance with the requirements of the CSRC Circular regarding the Annual Reporting of Securities Companies in 2007
(Zhengjian Jigou Zi [2007] No. 320) issued on 18 December 2007 and in compliance with the Securities Law, for the purpose
of covering securities trading losses, the Company appropriates 10% from its annual net profit to the transaction risk reserve.
In accordance with the requirements of the CSRC No. 94 Provisional Measures on Supervision and Administration of Risk
Provision of Public Offering of Securities Investment Funds, the Company appropriates 2.5% from its fund custody fee
income to the general risk reserve.
The Company’s subsidiaries appropriate their profits to the general reserve according to the applicable local regulations.
(h) Fair value reserve
The fair value reserve comprises:
- The cumulative net change in the fair value of equity securities designated at FVOCI; and
- The cumulative net change in fair value of debt securities at FVOCI until the assets are derecognised or reclassified. This
amount is adjusted by the amount of loss allowance.
(i) Cash flow hedge reserve
The cash flow hedge reserve comprises the effective portion of the gain or loss on the hedging instrument.
(j) Translation reserve
The translation reserve mainly comprises foreign currency differences arising from the translation of the financial
statements of foreign operations.
(k) Dividends
Pursuant to the resolution of the general meeting of the shareholders dated 22 June 2021, on 6 August 2021, the Company
distributed cash dividends of RMB4.00 (tax inclusive) per 10 shares, totalling RMB3,613 million based on 9,031,371,505 shares,
the actual number of shares entitled to the dividend distribution (exclusive of A shares of the Company in the repurchased
securities account).
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55 Commitments
(a) Capital commitments
Capital commitments outstanding at 31 December 2021 and 31 December 2020 not provided for in the consolidated
financial statements were as follows:
The aforementioned capital commitments mainly represent the securities underwriting commitments of the Group.
56 Interests in structured entities
(a) Interests in structured entities consolidated by the Group
Structured entities consolidated by the Group mainly stand for the asset management schemes where the Group involves
as manager or investment consultant and also as investor. The Group assesses whether the combination of investments it
holds together with its remuneration creates exposure to variability of returns from the activities of the asset management
schemes to a level of such significance that it indicates that the Group is a principal.
As at 31 December 2021 and 31 December 2020, the Group consolidates 34 and 47 structured entities respectively, which are
mainly asset management schemes. As at 31 December 2021 and 31 December 2020, the total assets of the consolidated
structured entities are RMB 29,375 million and RMB96,479 million, respectively, and the carrying amount of interests held by
the Group in the consolidated structured entities are RMB 28,329 million and RMB34,831 million, respectively.
(b) Interests in structured entities sponsored by the Group but not consolidated
Structured entities for which the Group served as general partner or manager, therefore has power over them during the
reporting periods are asset management schemes. Except for the structured entities that the Group has consolidated as
set out in Note 56(a) , the Group’s exposure to the variable returns in the remaining structured entities in which the Group
has interest are not significant. The Group therefore did not consolidate these structured entities.
As at 31 December 2021 and 31 December 2020, the total assets of these unconsolidated structured entities managed by
the Group amounted to RMB521,972 million and RMB542,764 million, respectively. As at 31 December 2021 and 31 December
2020, the carrying amount of interests held by the Group in these unconsolidated structured entities are RMB3,403 million
and RMB1,809 million, respectively.
During the year ended 31 December 2021 and 31 December 2020, income derived from these unconsolidated structured
entities held by the Group amounted to RMB1,458 million and RMB999 million, respectively.
(c) Interests in structured entities sponsored by third party institutions
The types of structured entities sponsored by third party institutions that the Group does not consolidate but in which it
holds interests include funds, asset management schemes, trust schemes, and wealth management products issued
by banks or other financial institutions. The nature and purpose of these structured entities are to generate fees from
managing assets on behalf of investors. These vehicles are financed through the issue of units to investors.
The carrying amount of the related accounts in the consolidated statements of financial position is equal to the maximum
exposure to loss of interests held by the Group in the unconsolidated structured entities sponsored by third party institutions
as at 31 December 2021 and 31 December 2020, which are listed as below:
As at 31 December
2021
2020
Contracted, but not provided for
2,469,201
1,888,359
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As at 31 December 2021
Financial assets at FVTPL Financial assets at FVOCI Total
Funds
49,197,876 - 49,197,876
Wealth management products
16,478,377 74,532 16,552,909
Total
65,676,253 74,532 65,750,785
As at 31 December 2020
Financial assets at FVTPL Financial assets at FVOCI Total
Funds
23,800,198 - 23,800,198
Wealth management products
10,102,553 10,586,865 20,689,418
Total
33,902,751 10,586,865 44,489,616
57 Outstanding litigations
From time to time in the ordinary course of business, the Group is subject to claims and are parties to legal and regulatory
proceedings. As at 31 December 2021 and 31 December 2020, based on the court rulings, advices from legal representatives
and management judgement, no provision had been made to the claim amounts. The Group is of the opinion the final
court judgement will not have a significant impact on the Group’s financial position or operations. As at 31 December 2021,
the major legal actions of the Group as the defendant are listed below:
During the year of 2021, the Company, received the arbitration document from Shanghai International Economic and Trade
Arbitration Commission in 2021. Everbright Securities Co., Ltd. carried out 4 bond-pledge agreement repurchase transactions
with HNA Group Finance Co., Ltd.(“HNA Finance”) in December 2018. After the repurchase transaction expired in June 2019,
HNA Finance failed to fulfill its repurchase obligation and applied for arbitration, requiring the Company, the broker of the
bond pledge agreement repurchase, to repay the relevant financing, interest and liquidated damages. The total claim
amount is RMB240.15 million. At the date of approval of this report, the first instance was held to hear the case on 29 October
2021, and no verdict has been reached as of the date of this report. According to the opinion of the legal representative and
the judgment of the management, the Group has not accrued any estimated liabilities for the claim amount.
During the year of 2020, the Group’s subsidiary Huatai United Securities Co., Ltd. (“Huatai United Securities”) received
the Notice of Legal Action and relevant litigation materials sent by the court. The plaintiffs, China Foreign Economy and
Trade Trust Co., Ltd., Shenzhen Rongtong Capital Management Co., Ltd. and CITIC Trust Co., Ltd., who failed to fully cash its
investment in “2015 public issuance of corporate bonds of Bright Oceans Group Co., Ltd. to qualified investors with no more
than RMB2.5 billion”, sued to the Court to require the lead underwriter of the bond (the first defendant) and Huatai United
Securities, the co-lead underwriter of the bond (the second defendant), to bear joint and several liability for compensation.
The claim amount was RMB23.54 million. At the date of this report, the first instance ruled that Huatai United Securities won
the case and the plaintiff appealed. The second instance was held on 21 January 2022, and no judgment has been made
as of the date of this report. According to the opinion of the legal representative and the judgment of the management, the
Group has not accrued any estimated liabilities for the claim amount.
During the year of 2020, the Group’s subsidiary Huatai United Securities received the Notice of Legal Action and relevant
litigation materials sent by Shanghai Financial Court. The plaintiff, Postal Savings Bank of China Co., Ltd., failed to fully
cash its investment in “Huatai Magnate Light Asset-backed Securities”, sued to the Court to require the manager (the
first defendant), the legal adviser (the second defendant), the rating agency (the third defendant), the issuer (the fourth
defendant) and Huatai United Securities, the financial adviser (the fifth defendant), to bear joint and several liability for
compensation. The claim amount was RMB 598 million. At the date of approval of this report, the first instance was held
three times to hear the case, and no judgment has been made as of the date of this report. According to the opinion of
the legal representative and the judgment of the management, the Group has not accrued any estimated liabilities for the
claim amount.
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(b) Related parties transactions and balances
(i) Transactions between the Group and major shareholders and their subsidiaries:
As at 31 December
2021
2020
Balances at the end of the year:
Financial assets at FVTPL
72,975
341,337
Debt investment at amortised cost
-
62,039
Accounts payable to brokerage clients
50,018
43,407
Other payables and accruals
3,211
3,211
Accounts receivable
598
-
58 Related party relationships and transactions
(a) Relationship of related parties
(i) Major shareholders
The detailed information of the transactions and balances with Group’s major shareholders and their subsidiaries is set out
in Note 58(b)(i).
(ii) Subsidiaries of the Group
The detailed information of the Group’s subsidiaries is set out in Note 24.
(iii) Associates of the Group
The detailed information of the Group’s associates is set out in Note 25.
(iv) Joint ventures of the Group
The detailed information of the Group’s joint ventures is set out in Note 26.
(v) Other related parties
Other related parties can be individuals or enterprises, which include members of the Board of Directors, the Board of
Supervisors and senior management, and close family members of such individuals.
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Year ended 31 December
2021
2020
Transactions during the year:
Fee and commission income
21,663
9,075
Net investment gains
29,134
16,992
Interest income
780
5,011
Interest expenses
-
1,181
During the year of 2021 and 2020, the Group has subscribed the bonds issued by major shareholders amounting to RMB40
million and RMB100 million, respectively.
During the year of 2021 and 2020, the Group has redeemed the bonds issued by major shareholders amounting to RMB363
million and RMB 235 million, respectively.
During the year of 2021 and 2020, the Group has taken placements from other financial institutions with major shareholders
and their subsidiaries for the total amounts of RMB nil and RMB2,500 million, respectively.
(ii) Transactions between the Group and associates:
As at 31 December
2021
2020
Balances at the end of the year:
Cash and bank balances
467,782
277,361
Right-of-use assets
92,992
130,112
Accounts receivable
271,617
138,386
Other receivables and prepayments
1,053
368
Financial assets at FVTPL
9,523
8,681
Accounts payable to brokerage clients
49,609
12,553
Placements from other financial institutions
1,500,330
500,211
Short-term debt instruments issued
-
1,154,502
Lease liabilities
103,195
137,850
Contract liabilities
-
643
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During the year of 2021 and 2020, the Group has redeemed the bonds issued by associates for RMB nil and RMB245 million,
respectively.
During the year of 2021 and 2020, the associates have subscribed the short-term debt instruments issued by the Group for
RMB 454 million and RMB340 million, respectively. The associates have redeemed the short-term debt instruments issued by
the Group for RMB 1,604 million and RMB 62 million, respectively.
During the year of 2021 and 2020, the capital injection made by the Group into the associates are RMB413 million and
RMB889 million, respectively. During the year of 2021 and 2020, the divestment made by the Group from the associates are
RMB1,137 million and RMB1,516 million, respectively.
During the year of 2021 and 2020, the Group has made repurchase agreements with associates for the total amount of
RMB108,865 million and RMB130,925 million, respectively.
During the year of 2021 and 2020, the Group has taken placements from other financial institutions with associates for the
total amount of RMB 89,400 million and RMB98,200 million, respectively.
During the year of 2021 and 2020, the Group has received dividends from associates for the total amounts of RMB1,124 million
and RMB768 million, respectively.
During the year of 2021 and 2020, the Group has paid rental fee to associates for the total amounts of RMB51 million and
RMB32 million, respectively.
(iii) Transactions between the Group and joint ventures:
Year ended 31 December
2021
2020
Transactions during the year:
Fee and commission income
425,218
237,706
Interest income
7,943
7,764
Net investment losses
(11,842)
(31,993)
Fee and commission expenses
-
2,077
Other income and gains
3,238
7,601
Interest expenses
20,931
14,396
During the year of 2021, the capital divestment made by the Group from the joint ventures are RMB58 million. During the year
of 2020, the capital divestment made by the Group from the joint ventures are RMB8 million.
As at 31 December
2021
2020
Balances at the end of the year:
Other receivables and prepayments
1,514
1,514
Accounts receivable
24,000
-
Year ended 31 December
2021
2020
Transactions during the year:
Fee and commission income
19,811
19,811
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(iv) Transactions between the Group and other related parties:
As at 31 December
2021
2020
Balances at the end of the year:
Accounts payable to brokerage clients
41,311
2,817
Year ended 31 December
2021
2020
Transactions during the year:
Fee and commission income
100
49
(c) Key management personnel remuneration
Remuneration for key management personnel of the Group, including amounts paid to the Company’s directors and
supervisors as disclosed in Note 16, is as follows:
Total remuneration is included in “staff costs” (see Note 10).
(d) Applicability of the Listing Rules relating to connected transactions
The related party transactions set out in Note 58(b) which constitute connected transactions or continuing connected
transactions as defined in Chapter 14A of the Listing Rules are exempt from the disclosure requirements in Chapter 14A of
the Listing Rules as they are below the de minimis threshold under Rule 14A.76(1) and 14A.93.
59 Segment reporting
Management manages the business operations by the following segments in accordance with the nature of the operations
and the services provided:
- The wealth management segment engages in the trading of stocks, funds, bonds and futures on behalf of clients, to
provide customers with a variety of financial products sales services and asset allocation services. Moreover, the activities
of providing margin financing, securities lending, securities-backed lendings and sell financial products are included in this
segment.
- The institutional services segment mainly provides investment banking business to clients, research and institutional
sales, equity securities investments and transactions, fixed income investments and transactions, OTC financial products
Year ended 31 December
2021
2020
Short-term employee benefits
- Fees, salaries, allowances and bonuses
53,115
34,619
Post-employment benefits
- Contribution to pension scheme
2,529
2,025
Share-based payments
11,521
-
Total
67,165
36,644
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and transactions.
- The investment management segment mainly consists of asset management, private equity investment, alternative
investments and commodities trading and arbitrage.
- The international business segment mainly includes the overseas business of overseas subsidiaries.
- Other segments include other operations of head office, mainly including interest income, share of profit of associates
and joint ventures, interest expenses of working capitals, and costs and expenses of middle offices and back offices.
(a) Business segments
For the year ended 31 December 2021
Wealth
management
Institutional
services
Investment
management
International
business Others Total
Revenue
- External
23,397,410 12,379,608 3,886,118 7,138,825 1,535,812 48,337,773
- Inter-segment
114,272 17,653 - - 65,973 197,898
Other income and gains
2,648,147 98,090 276,044 753,570 (122,423) 3,653,428
Segment revenue and
other income
26,159,829 12,495,351 4,162,162 7,892,395 1,479,362 52,189,099
Segment expenses
(18,549,453) (7,574,761) (1,290,760) (6,463,785) (4,657,685) (38,536,444)
Segment operating
profit/(loss)
7,610,376 4,920,590 2,871,402 1,428,610 (3,178,323) 13,652,655
Share of profit of
associates and joint
ventures
- 9,831 548,695 1,499 2,069,956 2,629,981
Profit before income tax
7,610,376 4,930,421 3,420,097 1,430,109 (1,108,367) 16,282,636
Interest income
11,868,074 567,861 462,760 537,284 1,335,082 14,771,061
Interest expenses
(5,436,940) (2,969,267) (323,473) (576,712) (1,751,410) (11,057,802)
Depreciation and
amortisation expenses
(511,596) (127,809) (75,196) (380,062) (347,797) (1,442,460)
Net (provision for) /
reversal of impairment
loss on financial assets
(496,097) 61,305 (1,502) (85,964) (25,930) (548,188)
Segment assets
288,840,978 302,178,205 34,903,726 141,457,908 138,156,490 905,537,307
Additions to non-current
segment assets during
the year
226,085 1,194,803 11,436 272,466 1,280,635 2,985,425
Segment liabilities
(285,063,892) (301,729,678) (14,441,230) (128,171,610) (24,095,113) (753,501,523)
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For the year ended 31 December 2020
Wealth
management
Institutional
services
Investment
management
International
business Others Total
Revenue
- External
17,965,074 10,421,451 3,759,466 5,842,220 1,593,068 39,581,279
- Inter-segment
218,956 37,766 - - 43,070 299,792
Other income and gains
1,293,403 65,494 310,631 (291,613) (367,073) 1,010,842
Segment revenue and
other income 19,477,433 10,524,711 4,070,097 5,550,607 1,269,065 40,891,913
Segment expenses
(14,213,154) (6,426,891) (1,756,231) (5,290,461) (3,896,320) (31,583,057)
Segment operating
profit/(loss) 5,264,279 4,097,820 2,313,866 260,146 (2,627,255) 9,308,856
Share of profit of
associates and joint
ventures - 11,986 2,675,170 (63) 1,516,554 4,203,647
Profit before income tax
5,264,279 4,109,806 4,989,036 260,083 (1,110,701) 13,512,503
Interest income
8,439,428 450,740 406,838 616,903 1,093,043 11,006,952
Interest expenses
(3,216,307) (2,831,617) (402,861) (653,087) (1,314,483) (8,418,355)
Depreciation and
amortisation expenses
(394,151) (112,249) (66,568) (322,105) (490,605) (1,385,678)
Net reversal of
impairment loss on
other assets
346 - - - - 346
Net (provision for) /
reversal of impairment
loss on financial assets
(1,324,705) 126,317 18,170 (86,540) (39,450) (1,306,208)
Segment assets
256,640,781 216,306,068 103,238,486 94,398,197 113,821,676 784,405,208
Additions to non-current
segment assets during
the year
227,944 62,686 33,801 1,048,830 474,918 1,848,179
Segment liabilities
(254,171,513) (214,585,003) (67,898,374) (83,388,407) (32,049,876) (652,093,173)
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Reconciliations of segment revenues, profit or loss, assets and liabilities:
For the year ended 31 December 2021 and 31 December 2020, the Group’s customer base is diversified and no customer had
transactions which exceeded 10% of the Group’s revenue.
Year ended 31 December
2021
2020
Revenue
Total revenue and other income for segments
52,189,099
40,891,913
Elimination of inter-segment revenue
(262,695)
(357,477)
Consolidated revenue and other income
51,926,404
40,534,436
Profit
Total profit before income tax for segments
16,282,636
13,512,503
Elimination of inter-segment profit
(10,074)
(8,127)
Consolidated profit before income tax
16,272,562
13,504,376
As at 31 December
2021
2020
Assets
Total assets for segments
905,537,307
784,405,208
Elimination of inter-segment assets
(98,886,474)
(67,653,973)
Consolidated total assets
806,650,833
716,751,235
Liabilities
Total liabilities for segments
(753,501,523)
(652,093,173)
Elimination of inter-segment liabilities
98,886,474
67,653,973
Consolidated total liabilities
(654,615,049)
(584,439,200)
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(b) Geographical segments
The following table sets out information about the geographical location of (i) the Group’s revenue from external customers and (ii) the Group’s property and equipment, investment
properties, goodwill, land-use rights and other intangible assets, interest in associates, interest in joint ventures and other non-current assets (“specified non-current assets”). The
geographical location of customers is based on the location at which the services were provided. The geographical location of the specified non-current assets is based on the physical
location of the asset, in the case of property and equipment and other non-current assets, the location of the operation to which they are allocated, in the case of goodwill, land-use
rights and other intangible assets, and the location of operations, in the case of interest in associates and interest in joint ventures.
Year ended 31 December 2021
Year ended 31 December 2020
Mainland China Overseas Total
Mainland China Overseas Total
Segment Revenue
Revenue from external customers
41,197,449 7,140,324 48,337,773
33,739,122 5,842,157 39,581,279
Other income and gains
2,835,061 753,570 3,588,631
1,244,770 (291,613) 953,157
Total
44,032,510 7,893,894 51,926,404
34,983,892 5,550,544 40,534,436
Year ended 31 December 2021
Year ended 31 December 2020
Mainland China Overseas Total
Mainland China Overseas Total
Specified non-current assets
26,426,848 8,973,237 35,400,085
24,545,028 8,237,489 32,782,517
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60 Financial instruments and risk management
(a) Risk management policies and structure
(i) Risk management policies
In order to enhance the Group’s scientific, standardised and effective management and operation, strengthen the
capability of defending against risks and ensure the continuous, stable and rapid development of the Group’s businesses,
the Group had formulated the Basic System for Risk Management which had been deliberated and approved by the
Board of Directors in accordance with the Securities Law of the People’s Republic of China, the Rules on Supervision over
Securities Companies, the Guidelines on the Internal Control of Securities Companies, the Regulation on Comprehensive
Risk Management of Securities Companies and other relevant regulations in combination with the business operation and
business management. This has clarified the risk management objectives and principles, the risk appetite and risk tolerance
level of the Company as a whole and for different risk types, the risk management procedures, and the relevant resource
assurance and appraisal mechanisms. In terms of operation management, the Group had formulated and issued various
professional risk management guidelines to clearly establish the management processes and measures, risk indicators
and limits for various types of risks; in addition, the Group had also formulated policies such as the Administration Measures
for Risk Control Indicators, the Rules on the Risk Management of Subsidiaries (Trial Implementation) and the Implementation
Plan and Detailed Implementation Rules for Stress Test at the operation level. In the specific business level, the Group had
established business risk management system or risk management manual based on the risk points of different business
areas and business management lines.
The principal types of risk faced by the Group in daily operation mainly include credit risk, liquidity risk, market risk,
operational risk, reputational risk, information technology risk, compliance risk and modelling risk. The Group had formulated
corresponding policies and procedures to identify and analyse these risks, and set up risk indicators, risk limits and internal
risk control processes in combination with the actual circumstances with a view to continuously manage the above risks
through the support of information systems and effective mechanisms.
Risk management is a shared responsibility of all the Group’s employees. The Group continuously enhances the risk
management awareness and risk sensitivity of all its employees through training and assessment to cultivate the risk
management culture.
(ii) Risk governance structure
The risk management structure of the Company covers five major parts: The Board and its Compliance and Risk
Management Committee, Board of Supervisors, Business Operation Management and Risk Control Committee, Risk
Management Department and various professional risk management departments as well as other departments, branches
and subsidiaries.
The board of directors is the highest decision-making body for risk management and assumes ultimate responsibility for
the effectiveness of the Company’s comprehensive risk management system. The Compliance and Risk Management
Committee is set up by the Board to review and make recommendations on the overall risk management targets,
fundamental policies and risk assessment reports; and evaluate and make recommendations on the risks of major
decisions which require the Board’s review as well as the solutions to these major risks. The Board of Supervisors is
responsible for the supervision of overall risk management, supervising and examining the Board and the management on
the performance of their risk management duties and urging them to make rectifications. Based on the authorisation and
approval of the Board and in combination with the operational targets of the Company, the management is specifically
responsible for the implementation of risk management activities, with the Risk Control Committee established under it. The
Chief Risk Officer of the Company is responsible for leading the overall risk management initiatives. The Risk Management
Department is charged with comprehensive risk management duties, it reports to the management and is responsible
for managing the overall risks of the Company, taking the lead in managing market risk, credit risk and operational risk.
Relevant functional departments of the Company are responsible for taking the lead in managing other types of risks
according to their responsibilities and positioning; other departments, branches and subsidiaries of the Company are
responsible for the management of risks in respective lines, implementing policies, procedures and measures formulated
by the Company and risk management departments, accepting the guidance from risk management departments
and the decomposition of risk management and implementation responsibilities by the risk management departments.
The Audit Department is responsible for the review and evaluation of the effectiveness and implementation of the risk
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management procedures of the Company and taking the lead in evaluating the overall risk management system of the
Company.
(b) Credit risk management
Credit risk refers to the risk of asset loss of the Company resulting from the default of a product or bond issuer or
counterparty (customer). The Company has established a credit risk management system covering self-owned capital and
entrusted funding business. The system is applied to all subsidiaries domestic or overseas, and also to the sub-subsidiaries
managed with reference to the subsidiary’s management approach, thereby achieving full credit risk management
coverage.
The Group mainly faced four types of credit risks, namely (i) the risks of suffering from loss in respect of the financing bills
and interests lent out due to customer’s default in financing business; (ii) the risks caused by default of the bond issuer in
bond investment business; (iii) the risks of assets suffering from loss due to the default by the counterparty; (iv) the risks
of loss suffered by the Group arising from payment made on customer’s behalf due to insufficient fund of the customer in
guarantee settlement business.
With respect to financing business, the Group adopted full-process control measures such as stringent customer and
underlying assets management, dynamic monitoring and timely risk mitigation to control the credit risk. During the
reporting period, the market was buoyant and the Company’s margin financing and securities lending business continued
to grow. The Company implemented stringent risk control processes, conducted special risk inspections on margin
financing and securities lending business, strengthened the counter-cyclical management mechanism, and improved the
standard of differentiated customers management. The amount to be recovered remains at a relatively low level.
With respect to bond investment business, the Company established a unified management system for issuers. During
the reporting period, the Company revised and reconstructed the bottom-line control over credit bond investment in key
industries, continued to promote the systematic construction of issuers’ credit risk management modules, and enhanced
the efficiency and pertinence of risk management. At the same time, it also continuously promoted the construction of
implementation of the access mechanism and restriction rules which are linked to rating results of the credit analysis
management system (CAMS system) to improve the consistency of the internal assessment system and enhance the
Group’s overall risk identification and control capabilities.
With respect to counterparty management, the Company promoted the construction of the unified management system
for counterparty, further expanded the coverage of the unified management of counterparty credit line at group level and
built a full counterparty list system in order to strictly control its business risk exposures. At the same time, the Company
continued to promote the systematic construction of counterparty credit risk management, and gradually realised the
platformisation of counterparty management and related processes.
With respect to guarantee settlement business, the Group incorporated it into the counterparty system for unified
management, and at the same time explored ways to enhance the management system and access threshold
for customer qualifications, continued to improve the front-end control of risk indicator design and promoted the
establishment of systematic measures, as well as strengthened its risk event handling and risk transmission control
capabilities.
At the same time, the Company promoted the establishment of a unified customer background penetration management
system within the Group. The Company comprehensively collated and released Key Guidelines for Control of Credit Risk in
Business Operation, and collated the bottom-line measures for strengthening the control of credit risk points. The Company
also continuously refined and improved customer ESG risk management mechanism in accordance with changes in the
external environment, consolidated the unified management system for credit risk, improved the capability to address the
complex external credit business environment, and provided robust risk management control support for the development
of various credit businesses.
The Group provided credit loss allowances for securities-backed lending of financial assets sold under repurchase
agreements. The Group assessed the continuous repayment, solvency and the collateral to loan ratios of the borrowers to
analyse the risk factors and identified the three stages of credit loss allowances of the securities-backed lending assets.
The details are as below:
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Description Stage of credit loss allowances
Collateral to loan ratios above the force liquidation thresholds, with no past
due days
12-month ECL Stage I
Collateral to loan ratios above the force liquidation thresholds, with less than
90 days past due on its contractual payments
Lifetime ECL-not credit impaired Stage II
Collateral to loan ratios below the force liquidation thresholds but above 100%,
with no past due days
Collateral to loan ratios below the force liquidation thresholds but above 100%,
with less than 90 days past due on its contractual payments
Collateral to loan ratios below 100% Lifetime ECL- credit impaired Stage III
Collateral to loan ratios above 100%, with more than 90 days past due on its
contractual payments
Borrowers in default or lawsuit
Borrowers in significant financial difficulties or about to bankruptcy or
undertaking a financial restructuring
The Group set different force liquidation thresholds, normally no less than 130%, for different borrowers and assets.
For assets classified under Stage I and II, the Group assessed credit loss allowances using the risk parameters modeling
approach that incorporated key parameters inclusive of collateral to loan ratios and past due days. The credit loss rate is
0.25% and 1%-4% for assets classified under Stage I and II, respectively.
For credit impaired assets classified under Stage III, the Group assessed credit loss allowances taking into account
the collateral securities under each contract and the financial situation of the borrower. The factors which the Group
considered when assessing the credit loss allowances included but not limited to: the industry sector of the borrower, the
stock price of the collateral securities, the average daily trading volume of the stock, the percentage of goodwill of the
stock issuer, significant risk parameters of the securities, whether the borrowers are the holding shareholders, the liquidity
and restriction on sales, the history of blacklist or defaults of the borrower, the total market pledged ratios of the stock, the
collateral situation, and the credit enhancement measures implemented by the borrower. The Group assessed the above
factors as well as collateral to loan ratios and past due days to evaluate and provide credit loss allowances, ranging from
10% to 100%.
(i) Maximum exposure to credit risk
Maximum exposure to credit risk of the Group without taking account of any collateral and other credit enhancements:
As at 31 December
2021
2020
Debt investment at amortised cost
32,421,516
30,411,508
Refundable deposits
27,627,129
24,763,790
Accounts receivable
10,287,174
9,095,561
Other receivables and prepayments
669,662
472,655
Margin accounts receivable
116,942,245
102,574,007
Financial assets at fair value through other
comprehensive income
9,314,699
5,267,955
Financial assets held under resale agreements
11,751,970
19,536,413
Financial assets at fair value through profit or loss
169,364,439
197,813,082
Derivative financial assets
15,247,805
7,295,357
Clearing settlement funds
8,580,941
6,988,396
Cash held on behalf of brokerage clients
143,640,263
124,635,007
Bank balances
37,237,593
49,650,839
Total maximum credit risk exposure
583,085,436
578,504,570
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The Group’s credit risk exposure of financial instruments for which an ECL allowance is recognised as follows according to
the stage of ECL:
As at 31 December 2021
Impairment and loss allowance
12-month ECL
Lifetime ECL-
not credit impaired
Lifetime ECL-
credit impaired Total
Bank balances
1,157 - - 1,157
Margin accounts receivable
780,028 1,042,276 92,007 1,914,311
Financial assets held under resale
agreements
12,440 - 1,106,337 1,118,777
Accounts receivable
- 97,739 - 97,739
Debt investment measured at
amortised cost
3,480 11,635 - 15,115
Financial assets at fair value through
other comprehensive income
47,736 - 49,374 97,110
Other receivables and prepayments
- 24,565 777,490 802,055
Total
844,841 1,176,215 2,025,208 4,046,264
As at 31 December 2020
Impairment and loss allowance 12-month ECL
Lifetime ECL-
not credit impaired
Lifetime ECL-
credit impaired Total
Bank balances
1,430 - - 1,430
Margin accounts receivable
355,422 996,449 116,380 1,468,251
Financial assets held under resale
agreements 11,996 135 1,027,281 1,039,412
Accounts receivable
- 63,300 - 63,300
Debt investment measured at
amortised cost 2,911 25,657 - 28,568
Financial assets at fair value through
other comprehensive income 68,019 - - 68,019
Other receivables and prepayments
- 25,972 806,364 832,336
Total
439,778 1,111,513 1,950,025 3,501,316
(ii) Risk concentrations
The Group’s maximum credit risk exposure without taking account of any collateral and other credit enhancements, as
categorised by geographical area:
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By geographical area
Mainland China Outside Mainland China Total
31 December 2021
Debt investment at amortised cost
32,192,280 229,236 32,421,516
Refundable deposits
24,549,150 3,077,979 27,627,129
Accounts receivable
8,818,900 1,468,274 10,287,174
Other receivables and
prepayments
497,259 172,403 669,662
Margin accounts receivable
115,449,652 1,492,593 116,942,245
Financial assets at fair value
through other comprehensive
income
5,668,616 3,646,083 9,314,699
Financial assets held under resale
agreements
9,129,894 2,622,076 11,751,970
Financial assets at fair value
through profit or loss
141,200,472 28,163,967 169,364,439
Derivative financial assets
10,086,591 5,161,214 15,247,805
Clearing settlement funds
8,380,654 200,287 8,580,941
Cash held on behalf of brokerage
clients
139,395,629 4,244,634 143,640,263
Bank balances
24,254,221 12,983,372 37,237,593
Total maximum credit risk exposure
519,623,318 63,462,118 583,085,436
By geographical area
Mainland China Outside Mainland China Total
31 December 2020
Debt investment at amortised cost
30,120,021 291,487 30,411,508
Refundable deposits
23,696,138 1,067,652 24,763,790
Accounts receivable
5,960,725 3,134,836 9,095,561
Other receivables and
prepayments 318,079 154,576 472,655
Margin accounts receivable
100,819,185 1,754,822 102,574,007
Financial assets at fair value
through other comprehensive
income - 5,267,955 5,267,955
Financial assets held under resale
agreements 19,134,247 402,166 19,536,413
Financial assets at fair value
through profit or loss 142,528,247 55,284,835 197,813,082
Derivative financial assets
1,454,555 5,840,802 7,295,357
Clearing settlement funds
6,388,195 600,201 6,988,396
Cash held on behalf of brokerage
clients 120,060,010 4,574,997 124,635,007
Bank balances
42,460,402 7,190,437 49,650,839
Total maximum credit risk exposure
492,939,804 85,564,766 578,504,570
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(iii) Credit rating analysis of financial assets
With respect to bond investment business, the Company established a unified management system for issuers for the
aggregated monitoring of the total investment amount of the same issuer for different business units within the Group
through the system and implemented bottom-line control over credit bond investment in key industries. At the same time,
it also continuously promoted the construction of implementation of the access mechanism and restriction rules which are
linked to rating results of the CAMS system to improve the consistency of the internal assessment system and enhance the
Group’s overall risk identification and control capabilities.
(c) Liquidity risk management
Liquidity risk refers to the risk of the Company not being able to obtain sufficient funds at a reasonable cost in time to
meet due debts, perform payment obligations and meet the capital requirements of normal businesses. The Company
established a fully functional liquidity risk management system to identify, measure, monitor, control and report on
its overall liquidity risk to improve the informatisation of liquidity risk management, enhance the capabilities in the
identification, measurement and monitoring of liquidity risk, and strengthen the Company’s ability in addressing liquidity risk.
In addition, the Company also established a right-sized liquidity assets reserves based on the risk appetite and maintained
sufficient liquidity assets with high quality to ensure the satisfaction of liquidity needs under stressful scenarios in a timely
manner.
The following tables show the details of the remaining contractual maturities at the end of the reporting period of the
Group’s non-derivative financial liabilities and derivate financial liabilities. Analysis of non-derivative financial liabilities
are based on contractual undiscounted cash flows (including interest payments computed using contractual rates or, if
floating, based on rates current at the end of the reporting period) and the earliest date the Group can be required to pay:
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HUATAI SECURITIES
As at 31 December 2021
Financial Liabilities
Carrying
amount
Overdue/
repayable on
demand
Less than
1 month
More than 1
month but less
than 3 months
More than 3
months but less
than 1 year
More than 1
year but less
than 5 years
More than
5 years Undated Total
Short-term bank loans
8,492,290 - 3,677,352 4,824,071 - - - - 8,501,423
Short-term debt instruments issued
53,598,658 - 11,887,249 10,933,249 31,316,916 - - - 54,137,414
Placements from other financial institutions
14,018,721 - 13,645,668 236,091 140,547 - - - 14,022,306
Accounts payable to brokerage clients
147,501,833 147,501,833 - - - - - - 147,501,833
Other payables and accruals
106,541,835 104,129,946 811,668 56,313 280,156 1,338,650 1,545 - 106,618,278
Financial assets sold under repurchase
agreements
130,710,001 - 106,860,905 12,815,426 11,174,143 - - - 130,850,474
Derivative financial liabilities
10,643,222 - 1,699,025 1,217,800 6,382,623 1,343,774 - - 10,643,222
Financial liabilities at fair value through profit
or loss
31,122,918 5,558,208 2,272,315 1,577,020 6,353,157 12,740,818 2,621,400 - 31,122,918
Long-term bonds
133,338,427 - 548,200 7,521,028 31,312,783 97,280,227 8,605,300 - 145,267,538
Long-term bank loans
722,816 - - 3,723 11,168 752,596 - - 767,487
Total
636,690,721 257,189,987 141,402,382 39,184,721 86,971,493 113,456,065 11,228,245 - 649,432,893
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As at 31 December 2020
Financial Liabilities
Carrying
amount
Overdue/
repayable on
demand
Less than
1 month
More than 1
month but less
than 3 months
More than 3
months but less
than 1 year
More than 1
year but less
than 5 years
More than
5 years Undated Total
Short-term bank loans 11,299,859 - 6,748,444 3,458,889 1,110,698 - - - 11,318,031
Short-term debt instruments issued 43,951,388 - 8,563,804 12,381,730 23,365,612 - - - 44,311,146
Placements from other financial institutions 4,815,236 - 3,948,126 869,006 - - - - 4,817,132
Accounts payable to brokerage clients 136,387,634 134,493,228 464,729 480,622 958,017 - - - 136,396,596
Other payables and accruals 105,900,966 102,865,940 655,526 86,245 275,905 2,031,340 96,326 - 106,011,282
Financial assets sold under repurchase
agreements
139,899,968 - 118,207,484 6,765,142 15,296,680 - - - 140,269,306
Derivative financial liabilities 13,398,830 - 86,923 2,252,398 1,544,147 9,515,362 - - 13,398,830
Financial liabilities at fair value through profit
or loss
15,381,530 1,176,256 307,786 1,200,000 3,815,036 6,849,314 2,033,138 - 15,381,530
Long-term bonds 97,053,188 - - 521,595 14,257,552 89,641,107 - - 104,420,254
Long-term bank loans 475,414 - - 2,674 8,023 507,504 - - 518,201
Total 568,564,013 238,535,424 138,982,822 28,018,301 60,631,670 108,544,627 2,129,464 - 576,842,308
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HUATAI SECURITIES
(d) Market risk management
Market risk refers to the risk resulting from the movements in market prices such as exchange rates, interest rates and stock
prices, which could have an impact on the income of the Group or the value of financial instruments held by the Group.
The objective of market risk management is to manage and control the market risk within the acceptable range and to
maximise the risk adjusted return.
(i) Interest rate risk
Interest rate risk refers to the risk that movements in market interest rate will cause fluctuation in the Company’s financial
position and cash flow. The Company’s interest-bearing assets mainly include bank balances, clearing settlement
funds, margin accounts receivable, financial assets purchased under resale agreements, refundable deposits and
bond investments; interest-bearing liabilities mainly include short-term bank loans, short-term debt instruments issued,
placements from other financial institutions, financial assets sold under repurchase agreements, accounts payable to
brokerage clients, long-term bonds and long-term bank loans, amongst others.
For financial instruments held on the balance sheet date that expose the Group to fair value interest rate risk, the Group
adopts sensitivity analysis as the primary instrument for monitoring interest rate risk. Sensitivity analysis measures the
effect of any reasonable and potential changes to the interest rate on the net profits and shareholders’ equity under the
assumption that all the other variables remain constant.
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The following tables indicate the assets and liabilities as at the end of the reporting period by the expected next repricing dates or by maturity dates, depending on which is earlier:
As at 31 December 2021
Financial assets
Less than
1 month
More than 1 month
but less than 3
months
More than 3 months
but less than 1 year
More than 1 year but
less than 5 years
More than
5 years Non-interest bearing Total
Investment in a joint venture at fair value
through profit or loss
- - - - - 823,289 823,289
Debt investment at amortised cost
299,958 1,259,997 5,437,854 15,681,423 9,220,654 521,630 32,421,516
Financial assets at fair value through
other comprehensive income
336,207 667,300 3,655,158 3,768,350 741,439 309,383 9,477,837
Financial assets held under resale agreements
6,525,631 837,184 4,353,459 - - 35,696 11,751,970
Refundable deposits
3,235,263 - - - - 24,391,866 27,627,129
Accounts receivable
- - - - - 10,287,174 10,287,174
Other receivables and prepayments
- - - - - 669,662 669,662
Margin accounts receivable
8,002,716 27,380,854 77,263,453 - - 4,295,222 116,942,245
Financial assets at fair value through profit or loss
3,705,934 4,895,760 52,754,191 65,670,791 35,017,149 193,215,347 355,259,172
Derivative financial assets
90,322 - - - - 15,157,483 15,247,805
Clearing settlement funds
8,580,920 - - - - 21 8,580,941
Cash held on behalf of brokerage clients
143,459,329 - - - - 180,934 143,640,263
Cash and bank balances
34,407,577 509,395 2,285,162 - - 35,667 37,237,801
Total
208,643,857 35,550,490 145,749,277 85,120,564 44,979,242 249,923,374 769,966,804
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As at 31 December 2021
Financial assets
Less than
1 month
More than 1 month
but less than 3
months
More than 3 months
but less than 1 year
More than 1 year but
less than 5 years
More than
5 years Non-interest bearing Total
Short-term bank loans
(3,673,889) (4,813,735) - - - (4,666) (8,492,290)
Short-term debt instruments issued
(11,837,978) (10,843,375) (30,637,351) - - (279,954) (53,598,658)
Placements from other financial institutions
(13,638,785) (235,901) (140,265) - - (3,770) (14,018,721)
Accounts payable to brokerage clients
(147,489,797) - - - - (12,036) (147,501,833)
Other payables and accruals
(22,155) (48,904) (258,354) (899,687) (1,456) (105,311,279) (106,541,835)
Financial assets sold under
repurchase agreements
(106,689,609) (12,765,354) (11,025,524) - - (229,514) (130,710,001)
Derivative financial liabilities
(95,196) - - - - (10,548,026) (10,643,222)
Financial liabilities at fair value through
profit or loss
(6,962,429) (1,577,020) (5,579,759) (12,217,046) (311,096) (4,475,568) (31,122,918)
Long-term bonds
- (7,000,000) (27,801,790) (89,119,660) (7,200,000) (2,216,977) (133,338,427)
Long-term bank loans
- - - (722,816) - - (722,816)
Total
(290,409,838) (37,284,289) (75,443,043) (102,959,209) (7,512,552) (123,081,790) (636,690,721)
Net interest rate risk exposure
(81,765,981) (1,733,799) 70,306,234 (17,838,645) 37,466,690 126,841,584 133,276,083
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As at 31 December 2020
Financial assets
Less than
1 month
More than 1 month
but less than 3
months
More than 3 months
but less than 1 year
More than 1 year but
less than 5 years
More than
5 years Non-interest bearing Total
Investment in a joint venture at fair value through
profit or loss - - - - - 888,195 888,195
Debt investment at amortised cost
830,000 1,076,858 9,111,486 14,531,827 4,458,530 402,807 30,411,508
Financial assets at fair value through other
comprehensive income 41,253 437,390 1,042,922 3,368,486 297,106 10,759,215 15,946,372
Financial assets held under resale agreements
14,079,115 887,843 4,542,121 - - 27,334 19,536,413
Refundable deposits
8,036,970 - - - - 16,726,820 24,763,790
Accounts receivable
- - - - - 9,095,561 9,095,561
Other receivables and prepayments
- - - - - 472,655 472,655
Margin accounts receivable
5,913,898 21,191,268 71,987,533 - - 3,481,308 102,574,007
Financial assets at fair value through profit or loss
15,104,737 25,378,016 61,180,681 66,486,061 16,343,392 107,314,225 291,807,112
Derivative financial assets
9,701 - - - - 7,285,656 7,295,357
Clearing settlement funds
6,988,285 - - - - 111 6,988,396
Cash held on behalf of brokerage clients
123,054,069 478,888 952,933 - - 149,117 124,635,007
Cash and bank balances
40,455,931 8,126,624 987,002 - - 81,482 49,651,039
Total
214,513,959 57,576,887 149,804,678 84,386,374 21,099,028 156,684,486 684,065,412
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As at 31 December 2020
Financial liabilities
Less than
1 month
More than 1 month
but less than 3
months
More than 3 months
but less than 1 year
More than 1 year but
less than 5 years
More than
5 years Non-interest bearing Total
Short-term bank loans
(6,735,226) (3,444,926) (1,102,637) - - (17,070) (11,299,859)
Short-term debt instruments issued
(8,518,234) (12,320,750) (22,855,245) - - (257,159) (43,951,388)
Placements from other financial institutions
(3,945,820) (867,812) - - - (1,604) (4,815,236)
Accounts payable to brokerage clients
(134,937,770) (478,888) (952,933) - - (18,043) (136,387,634)
Other payables and accruals
(47,570) (85,388) (265,110) (771,860) (78,870) (104,652,168) (105,900,966)
Financial assets sold under repurchase
agreements (118,061,442) (6,595,357) (14,911,087) - - (332,082) (139,899,968)
Derivative financial liabilities
(54,708) - - - - (13,344,122) (13,398,830)
Financial liabilities at fair value through profit or
loss (517,302) (1,200,001) (3,815,037) (5,696,683) - (4,152,507) (15,381,530)
Long-term bonds
- - (11,310,000) (84,384,410) - (1,358,778) (97,053,188)
Long-term bank loans
- - - (475,414) - - (475,414)
Total
(272,818,072) (24,993,122) (55,212,049) (91,328,367) (78,870) (124,133,533) (568,564,013)
Net interest rate risk exposure
(58,304,113) 32,583,765 94,592,629 (6,941,993) 21,020,158 32,550,953 115,501,399
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Sensitivity analysis
For those financial instruments held by the Group which expose the Group to fair value interest rate risk at the end of the
reporting period, the Group adopts sensitivity analysis to measure the potential effect of changes in interest rates on the
Group’s net profit and equity. Assuming all other variables remain constant and without taking into consideration of the
management’s activities to reduce interest rate risk, interest rate sensitivity analysis is as follows:
The sensitivity analysis above indicates the instantaneous change in the Group’s net profit and equity that would arise
assuming that the change in interest rates had occurred at the end of the reporting period and had been applied to re-
measure those financial instruments held by the Group which expose the Group to fair value interest rate risk at the end
of the reporting period. In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative
instruments held by the Group at the end of the reporting period, the impact on the Group’s net profit and equity is
estimated as an annualised impact on interest expense or income of such a change in interest rates.
(ii) Currency risk
Currency risk is the risk arising from foreign exchange business of the Group, which is attributable to the fluctuation of
foreign exchange rates. Apart from the assets and liabilities held by the Group’s overseas subsidiaries which use Hong
Kong dollars or U.S. dollars as their functional currency, other assets and liabilities denominated in foreign currencies
mainly represent foreign currency cash and bank balances held by domestic enterprises, foreign currency financial assets
and liabilities arising from cross-border business, as well as foreign currency financial assets acquired by subsidiaries. In
respect of assets and liabilities denominated in foreign currencies such as cash and bank balances, clearing settlement
funds, refundable deposits, accounts receivable, cash held on behalf of brokerage clients, accounts payable and long-
term bonds that are not accounted for with their functional currency, the Group has ensured that their net risk exposure are
maintained at an acceptable level by buying or selling foreign currencies at market exchange rates where necessary to
address the short-term imbalances.
Sensitivity of net profit
As at 31 December
Move in yield curve
2021
2020
Up 100 basis points
(2,135,979)
(1,611,464)
Down 100 basis points
2,261,148
1,685,736
Sensitivity of net equity
As at 31 December
Move in yield curve
2021
2020
Up 100 basis points
(2,203,921)
(1,678,900)
Down 100 basis points
2,331,929
1,753,171
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Assuming all other risk variables remained constant and without consideration of risk management measures undertaken
by the Group, a 10% strengthening of the RMB against USD and HKD at the reporting date would have increased / (decreased)
the Group’s equity and net profit by the amount shown below, whose effect is in RMB and translated using the spot rate at
the reporting date:
A 10% weakening of the RMB against the USD and HKD at balance date would have had the equal but opposite effect on
them to the amounts shown above, on the basis that all other variables remained constant.
Due to the above assumptions, the result of sensitivity analysis on exchange rate changes may be different, compared with
the actual changes in the Group’s net profit and equity of may arise with this.
(iii) Price risks
The Group is exposed to equity price changes arising from equity investments concluded in financial instruments at
fair value through profit or loss and financial assets at fair value through other comprehensive income. Price risk the
Group facing is mainly the proportionate fluctuation in the Group’s net profits due to the price fluctuation of the financial
instruments at fair value through profit or loss and the proportionate fluctuation in the Group’s equity due to the price
fluctuation of the financial instruments measured at fair value.
Sensitivity analysis
The analysis below is performed to show the impact on Group’s net profit and equity due to change in the prices of equity
securities by 10% with all other variables held constant.
Sensitivity of net profit
As at 31 December
Currency
2021
2020
USD
1,375,888
98,163
HKD
(594,038)
(500,808)
Sensitivity of net equity
As at 31 December
Currency
2021
2020
USD
495,930
(853,351)
HKD
(699,986)
(611,490)
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Sensitivity of net profit
As at 31 December
2021
2020
Increase by 10%
5,980,478
3,409,244
Decrease by 10%
(5,980,478)
(3,409,244)
Sensitivity of net equity
As at 31 December
2021
2020
Increase by 10%
5,993,347
4,210,964
Decrease by 10%
(5,993,347)
(4,210,964)
The sensitivity analysis indicates the instantaneous change in the Group’s net profit and equity that would arise assuming
that the changes in the stock market index or other relevant risk variables had occurred at the end of the reporting period
and had been applied to re-measure those financial instruments held by the Group which expose the Group to equity
price risk at the end of the reporting period. It is also assumed that the fair values of the Group’s equity investments would
change in accordance with the historical correlation with the relevant stock market index or the relevant risk variables, and
that all other variables remain constant. The analysis is performed on the same basis for 2021 and 2020.
(e) Operational risk management
Operational risk refers to the risk on the Company’s losses caused by inadequate or problematic internal procedures, staff,
system or external events, which lead to inefficient internal procedures, mistakes of staff in operation or failure to strictly
enforce the established procedures. The Risk Management Department takes the lead in managing the operational risk of
the Company. Each risk management departments, business departments and support departments perform operational
risk management in their respective business and management areas according to their segregation of functions.
The Company adopts technological measures to prevent the emergence of operational risks in different business and
management procedures as well as key segments, whilst at the same time strengthens process controls, to ensure
effective implementation of operational risk management policies and systems. The Company carries out self-assessment
of risk and control, monitoring of key risk indicators and gathering of loss data as additional approaches to strengthen the
management of operational risks.
Based on the Basic Standard for Enterprise Internal Control jointly issued by the Ministry of Finance, the CSRC, the National
Audit Office, the China Banking Regulatory Commission and the China Insurance Regulatory Commission as well as its
supporting guidelines and the relevant requirements of the regulatory authorities and the Company, the Company has
developed the risk-based internal control standards and carried out relevant continuous improvement initiatives. It has
combined the self-assessment of operational risk with the self-assessment of internal controls; comprehensively sorted
out and evaluated the inherent risks and control activities in various business processes; tested the effectiveness of control
design and implementation; rectified the internal control weaknesses; comprehensively sorted out and optimised various
business segments, systems and processes of the Company; whilst at the same time supplemented and improved the
risk control matrix and internal control manual; recorded the risk points, key control activities and major business flow
charts in order to ensure that the Company’s internal control measures are properly in place and the effectiveness of risk
management. In addition, the Company has also integrated the management of operational risk and internal controls into
daily operation; participated in the design of system, procedures and plan for new business throughout the entire process;
fully identified and comprehensively evaluated the operational risks; and performed various pre-, middle- and post
management measures such as setting up front-end controls, standardising business processes, creating risk-discovery
indicators and conducting training and inspection in order to implement internal controls at key risk points.
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(f) Capital management
The Group’s objectives of capital management are:
(i) To safeguard the Group’s ability to continue as a going concern so that they can continue to provide returns for
shareholders and benefits for other stakeholders;
(ii) To support the Group’s stability and growth;
(iii) To maintain a strong capital base to support the development of their business; and
(iv) To comply with the capital requirements under the PRC, Hong Kong and the United States regulations.
On 23 January 2020 and 16 June 2020, the revised Rules on Standards for the Calculation of Risk Control Indicators of
Securities Companies and the revised Administrative Measures for Risk Control Indicators of Securities Companies were
issued by the CSRC (“Revised Administrative Measures”). The Company is required to meet the following standards for risk
control indicators on a continual basis from 1 June 2020:
(i) The ratio of net capital divided by the sum of its various risk capital provisions shall be no less than 100% (“Ratio 1”);
(ii) The ratio of net capital divided by net assets shall be no less than 20% (“Ratio 2”);
(iii) The ratio of net capital divided by liabilities shall be no less than 8% (“Ratio 3”);
(iv) The ratio of net assets divided by liabilities shall be no less than 10% (“Ratio 4”);
(v) The ratio of the value of equity securities and derivatives held divided by net capital shall not exceed 100% (“Ratio 5”);
(vi) The ratio of the value of non-equity securities and derivatives held divided by net capital shall not exceed 500% (“Ratio
6”);
(vii) The ratio of core net capital divided by on balance sheet and off balance sheet assets shall be no less than 8% (“Ratio
7”);
(viii) The ratio of high quality liquidity assets divided by net cash outflows for the next 30 days shall be no less than 100%
(“Ratio 8”);
(ix) The ratio of available stable funds divided by required stable funds shall be no less than 100% (“Ratio 9”); and
(x) The ratio of margin financing (including securities lending) divided by net capital shall not exceed 400% (“Ratio 10”).
Net capital refers to net assets minus risk adjustments on certain types of assets as defined in the Revised Administrative
Measures.
As at 31 December 2021 and 31 December 2020, the Company maintained net capital and the above ratios as follows:
Year ended 31 December
2021
2020
Net Capital
82,314,070
67,909,921
Ratio 1
246.45%
236.68%
Ratio 2
64.97%
60.65%
Ratio 3
21.42%
21.86%
Ratio 4
32.97%
36.04%
Ratio 5
49.80%
49.91%
Ratio 6
291.29%
296.70%
Ratio 7
15.99%
21.08%
Ratio 8
169.68%
230.31%
Ratio 9
126.98%
130.22%
Ratio 10
175.89%
194.19%
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Similar to the Company, certain subsidiaries of the Group are also subject to capital requirements under the Mainland
China, Hong Kong and the United States regulatory requirements, respectively. These subsidiaries comply with the capital
requirements during the year ended 31 December 2021 and 31 December 2020.
(g) Transfer of financial assets
The Group transferred financial assets to certain counterparties through repurchase agreements and securities lending.
These securities and margin accounts receivable are not derecognised from the consolidated statement of financial
position because the Group retains substantially all the risks and rewards of these securities and margin accounts
receivable.
The Group entered into repurchase agreements with certain counterparties to sell debt securities classified as financial
assets at fair value through profit or loss, debt investment at amortised cost and margin accounts receivable. Sales and
repurchase agreements are transactions in which the Group sell a security, rights and interests in a margin accounts
receivable and agree to repurchase it at the agreed date and price. The repurchase prices are fixed and the Group is still
exposed to substantially all the credit risks, market risks and rewards of those securities and rights and interests sold. These
securities and margin accounts receivable are not derecognised from the consolidated statement of financial position
because the Group retains substantially all the risks and rewards of these financial assets.
The Group entered into securities lending agreements with clients to lend out its equity securities and exchange-traded
funds classified as financial assets at fair value through profit or loss. As stipulated in the securities lending agreements, the
legal ownership of these equity securities and exchange-traded funds is transferred to the clients. Although the clients are
allowed to sell these securities during the covered period, they have obligations to return these securities to the Group at
specified future dates. The Group has determined that it retains substantially all the risks and interests of these securities
and therefore has not derecognised these securities in the consolidated statement of financial position.
The following tables provide a summary of carrying amounts and fair values of the transferred financial assets that are not
derecognised in their entirety and the associated liabilities:
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As at 31 December 2021
As at 31 December 2020
Financial assets at fair value through profit or loss
Margin accounts
receivable
Debt investment at
amortised cost Total
Sales and repurchase
agreements Securities lending
Margin loans receivable
backed repurchase
Sales and repurchase
agreements
Carrying amount of transferred assets
5,014,218 5,156,319 - 1,097,169 11,267,706
Carrying amount of associated liabilities
(4,635,158) - - (1,019,936) (5,655,094)
Net position
379,060 5,156,319 - 77,233 5,612,612
Financial assets at fair value through profit or loss
Margin accounts
receivable
Debt investment at
amortised cost
Total
Sales and repurchase
agreements
Securities lending
Margin loans receivable
backed repurchase
Sales and repurchase
agreements
Carrying amount of transferred assets
2,649,170 5,426,439 311,411 317,882 8,704,902
Carrying amount of associated liabilities
(2,484,314) - (300,321) (294,586) (3,079,221)
Net position
164,856 5,426,439 11,090 23,296 5,625,681
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61 Fair value information
(a) Fair value of financial instruments
The Group adopts the following methods and assumptions when evaluating fair value:
(i) Financial assets including cash and bank balances, cash held on behalf of brokerage clients, clearing settlement funds,
financial assets held under resale agreements, current debt investment at amortised cost and financial liabilities including
placements from other financial institutions, short-term debt instruments issued, short-term bank loans and financial assets
sold under repurchase agreements are mainly short-term financing or floating interest rate instruments. Accordingly, the
carrying amounts approximate the fair value.
(ii) Financial instruments at fair value through profit or loss, derivatives and financial assets at fair value through other
comprehensive income are stated at fair value unless the fair value cannot be reliably measured. For the financial
instruments traded in active open markets, the Group uses market prices or market rates as the best estimate for their fair
value. For the financial instruments without any market price or market rate, the Group determines the fair value of these
financial assets and financial liabilities by discounted cash flow or other valuation methods.
(iii) The fair value of non-current debt investment at amortised cost investments and long-term bonds are determined with
reference to the available market prices or quotes from brokers or agents. If there is no quoted market price in an active
market, the Group refers to the yield of financial instruments with similar characteristics such as credit risk and maturity, to
estimate the fair value using pricing models or discounted cash flow.
(iv) Accounts receivable, margin accounts receivable, and accounts payable to brokerage clients are within one year.
Accordingly, the carrying amounts approximate the fair value.
(b) Fair value of other financial instruments (carried at other than fair value)
The carrying amount and fair value of debt investment at amortised cost investment, short-term debt instruments issued
and long-term bonds which are not presented at fair value are listed as below:
Carrying amount
As at 31 December
2021
2020
Financial assets
- Debt investment at amortised cost
32,421,516
30,411,508
Total
32,421,516
30,411,508
Financial liabilities
- Short-term debt instruments issued
(53,598,658)
(43,951,388)
- Long-term bonds
(133,338,427)
(97,053,188)
Total
(186,937,085)
(141,004,576)
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Fair value
The fair value of the financial assets and financial liabilities included in the level II and III categories above have been
determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the
most significant inputs being the discount rate that reflects the credit risk of counterparties.
Except for the above, the directors of the Company consider that the carrying amounts of financial assets and financial
liabilities recorded at amortised cost less impairment in the Group’s consolidated statements of financial position
approximate their fair value.
As at 31 December 2021
Level I Level II Level III Total
Financial assets
- Debt investment at amortised cost
- 32,781,490 - 32,781,490
Total
- 32,781,490 - 32,781,490
Financial liabilities
- Short-term debt instruments issued
37,277,709 - 16,325,123 53,602,832
- Long-term bonds
112,667,024 6,100,632 15,447,590 134,215,246
Total
149,944,733 6,100,632 31,772,713 187,818,078
As at 31 December 2020
Level I Level II Level III Total
Financial assets
- Debt investment at amortised cost
9,917,696 20,490,979 - 30,408,675
Total
9,917,696 20,490,979 - 30,408,675
Financial liabilities
- Short-term debt instruments issued
18,490,590 5,009,910 20,444,719 43,945,219
- Long-term bonds
84,601,075 6,085,902 6,180,994 96,867,971
Total
103,091,665 11,095,812 26,625,713 140,813,190
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(c) Fair value hierarchy
The table below analyses financial instruments, measured at fair value at the end of the reporting period, by the level in
the fair value hierarchy into which the fair value measurement is categorised. It does not include fair value information for
financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of
fair value.
As at 31 December 2021
Level I Level II Level III Total
Assets
Financial assets at fair value through
profit or loss
- Debt securities
1,478,884 158,618,052 499,955 160,596,891
- Equity securities
111,833,214 6,166,907 4,122,063 122,122,184
- Funds
48,717,822 916,923 - 49,634,745
- Wealth management products
- 19,294,123 - 19,294,123
- Loan and advances
- - 3,611,229 3,611,229
Financial assets at fair value through
other comprehensive income
- Debt securities
- 8,405,174 - 8,405,174
- Equity securities
- 74,532 88,606 163,138
- Loan and advances
- - 909,525 909,525
Other investment
- Unlisted investment in a
joint venture
- - 823,289 823,289
Derivative financial assets
72,207 12,495,885 2,679,713 15,247,805
Total
162,102,127 205,971,596 12,734,380 380,808,103
Liabilities
Financial liabilities at fair value through
profit or loss
- Financial liabilities held for trading
(523,841) (26,647,350) - (27,171,191)
- Financial liabilities designated at
fair value through profit or loss
(249,712) (95,161) (3,606,854) (3,951,727)
Derivative financial liabilities
(79,678) (8,411,922) (2,151,622) (10,643,222)
Total
(853,231) (35,154,433) (5,758,476) (41,766,140)
380
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As at 31 December 2020
Level I Level II Level III Total
Assets
Financial assets at fair value through
profit or loss
- Debt securities
27,242,316 160,410,227 684,259 188,336,802
- Equity securities
56,248,721 3,653,328 3,806,541 63,708,590
- Funds
23,690,715 719,160 - 24,409,875
- Wealth management products
- 7,499,053 3,802,951 11,302,004
- Loan and advances
- - 4,049,841 4,049,841
Financial assets at fair value through
other comprehensive income
- Debt securities
- 4,390,712 - 4,390,712
- Equity securities
- 10,586,865 91,552 10,678,417
- Loan and advances
- - 877,243 877,243
Other investment
- Unlisted investment in a
joint venture - - 888,195 888,195
Derivative financial assets
117,320 6,775,882 402,155 7,295,357
Total
107,299,072 194,035,227 14,602,737 315,937,036
Liabilities
Financial liabilities at fair value through
profit or loss
- Financial liabilities held for trading
(240,151) (11,229,022) - (11,469,173)
- Financial liabilities designated at
fair value through profit or loss (571,186) (157,153) (3,184,018) (3,912,357)
Derivative financial liabilities
(253,515) (11,636,722) (1,508,593) (13,398,830)
Total
(1,064,852) (23,022,897) (4,692,611) (28,780,360)
For the year ended 31 December 2021 and year ended 31 December 2020, there was a transfer of amount RMB2,509 and
RMB761 million from Level II to Level I due to its lifting of restricted stocks, respectively. For the year ended 31 December 2021
and year ended 31 December 2020, the transfers into or out of Level III fair value measurements were resulted from the
changes of inputs in fair value measurements.
(i) Financial instruments in Level I
The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the
statement of financial position. A market is regarded as active if quoted prices are readily and regularly available from an
exchange, dealer, broker and those prices represent actual and regularly occurring market transactions on an arm’s length
basis. The quoted market price used for financial assets held by the Group is the closing price within bid-ask spread. These
instruments are included in Level I. Instruments included in Level I comprise primarily securities traded on the Shanghai
Stock Exchange and the Shenzhen Stock Exchange classified as financial assets at fair value through profit or loss and the
corresponding liabilities of the securities.
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(ii) Financial instruments in Level II and Level III
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques.
These valuation techniques maximise the use of observable market data where it is available and rely as little as possible
on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is
included in Level II.
If one or more of the significant inputs is not based on observable market data, the instrument is included in Level III.
(iii) Valuation methods for specific investments
As at 31 December 2021 and 31 December 2020, the Group’s valuation methods for specific investments are as follows:
(1) For exchange-listed equity securities, fair value is determined based on the closing price of the equity securities as at
the reporting date within bid-ask spread. For those which has no quoted market price or those with lock-up periods as at
the reporting date, valuation techniques are used to determine the fair value.
(2) For exchange-listed investment funds, fair value is determined based on the closing price within bid-ask spread as at
the reporting date or the most recent trading date. For open-end funds and wealth management products, fair value is
determined by trading price which is based on the net asset value as at the reporting date.
(3) For debt securities listed through exchanges, fair value is determined based on the closing price within bid-ask spread
of the debt securities at the date of statements of financial position.
(4) For debt securities traded through the inter-bank bond market and OTC market, fair value is determined using valuation
techniques.
(5) For unlisted equity securities, wealth management products without quoted bid price in an active market, loan and
advances, gold leasing and OTC derivative financial instruments, fair value is determined using valuation techniques.
382
HUATAI SECURITIES
Financial assets at fair
value through profit or
loss
Other
investment
Financial assets at fair
value through other
comprehensive income
Derivative financial
assets
Financial liabilities
at fair value through
profit or loss
Derivative financial
liabilities Total
As at 1 January 2021
12,343,592 888,195 968,795 402,155 (3,184,018) (1,508,593) 9,910,126
Gains or losses for the year
(1,537,609) (64,906) 10,357 756,736 (563,382) (2,026,714) (3,425,518)
Changes in fair value recognised in
other comprehensive income
- - (9,757) - - 20,164 10,407
Purchases
6,628,925 - 566,508 294,056 - (344,153) 7,145,336
Sales and settlements
(9,201,661) - (537,772) 1,226,766 140,546 1,707,674 (6,664,447)
As at 31 December 2021
8,233,247 823,289 998,131 2,679,713 (3,606,854) (2,151,622) 6,975,904
Total gains or losses for the period
included in profit or loss for assets/
liability held at the end of the
reporting period
(1,809,940) (64,906) - 2,182,267 (165,692) (882,112) (740,383)
(iv) Financial instruments in Level III
The following table shows a reconciliation from the beginning balances to the ending balances for fair value measurement in Level III of the fair value hierarchy:
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Financial assets at fair
value through profit or
loss
Other
investment
Financial assets at fair
value through other
comprehensive income
Derivative financial
assets
Financial liabilities
at fair value through
profit or loss
Derivative financial
liabilities Total
As at 1 January 2020
7,799,347 - 1,088,061 775,442 (2,690,563) (542,972) 6,429,315
Gains or losses for the year
503,144 46,555 158,545 237,494 (695,601) (2,511,145) (2,261,008)
Changes in fair value recognised in
other comprehensive income - - (2,871) - - (34,348) (37,219)
Purchases
8,083,217 841,640 856,485 157,209 - 398,369 10,336,920
Sales and settlements
(4,042,116) - (1,131,425) (767,990) 202,146 1,181,503 (4,557,882)
As at 31 December 2020
12,343,592 888,195 968,795 402,155 (3,184,018) (1,508,593) 9,910,126
Total gains or losses for the period
included in profit or loss for assets/
liability held at the end of the
reporting period 211,830 46,555 - 539,665 (592,401) (1,377,622) (1,171,973)
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For financial instruments in Level III, prices are determined using valuation methodologies such as discounted cash flow
models and other similar techniques. Determinations to classify fair value measures within Level III of the valuation hierarchy
are generally based on the significance of the unobservable inputs to the overall fair value measurement. The following
table presents the related valuation techniques and inputs of the major financial instruments in Level III.
The fair value of the financial instruments in Level III is not significantly sensitive to a reasonable change in these
unobservable inputs.
62 Equity-settled share-based transactions
Financial assets and liabilities
Fair value hierarchy
Valuation technique(s) and
key input(s)
Significant unobservable
input(s)
Relationship of unobservable
input(s) to fair value
Wealth management
products, loan and
advances and private
placement bonds Level III Discounted cash flow model Risk adjusted discount rate
The higher the risk adjusted
discount rate, the lower the
fair value
Unlisted equity investment Level III
Market comparable
companies
Discount for lack of
marketability
The higher the discount, the
lower the fair value
Financial liabilities arising from
consolidation of private
equity funds Level III
Market comparable
companies of the underlying
portfolios
Discount for lack of
marketability
The higher the discount, the
lower the fair value
Over-the-counter derivatives Level III
Black-Scholes option pricing
model
Price volatility of underlying
assets
The higher the price
volatility,the greater the
impact on the fair value
Monte-Carlo option pricing
model
Price volatility of underlying
assets
The higher the price
volatility,the greater the
impact on the fair value
(a) Restricted share incentive scheme of A shares
Note
As at
1 January 2021
Accrued
for the year
Decrease
for the year
As at
31 December 2021
Restricted Share Incentive Scheme of
A Shares
(a) - 98,209 - 98,209
Share-based payments of an
overseas subsidiary
(b) 1,004,839 145,481 - 1,150,320
Total
1,004,839 243,690 - 1,248,529
The Company carried out a Restricted Share Incentive Scheme of A Shares whereby the Company grant restricted A shares
to the Incentive Participants in return for their services. Details of the shares of the scheme as at 31 December 2021 are set
out below:
As at 31 December 2021
Granted during the year
45,488,000
Exercised / unlocked during the year
-
Forfeited during the year
(1,024,973)
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As at 31 December 2021, cumulative amount of RMB98.21 million was recognised in the capital reserve of the Company. The
total expenses recognised for the year ended 31 December 2021 was RMB98.21 million.
The fair value of services received in return for restricted share Incentive scheme is measured by reference to the fair value
of shares. The estimate of the fair value of restricted shares granted is measured based on the closing price of shares at
grant date, which is RMB17.24 per share.
(b) Share-based payments of an overseas subsidiary
On 3 July 2019, AssetMark Financial Holdings, Inc. granted the equity incentive plan (“the 2019 Equity Incentive Plan”). The
2019 Equity Incentive Plan was effective on 17 July 2019, i.e. the effective date of the S-1 registration form of the Initial Public
Offering (“IPO”).
(i) Restricted Stock Awards (RSAs)
On 17 July 2019, AssetMark Financial Holdings, Inc. granted the original holders of Class C Common Unites Restricted Stock
Awards equal to 6,309,049 shares of AssetMark Financial Holdings, Inc. common stock. The Restricted Stock Awards are
subject to the same vesting schedule as the Class C Common Units of AssetMark Holdings, LLC.
(ii) Stock Options
In connection with the IPO, AssetMark Financial Holdings, Inc. issued options to certain officers to acquire an aggregate of
918,981 shares of the common stock, with an exercise price of USD22 per share. Each of these options is scheduled to vest
and become exercisable in substantially equal installments on each of the first three anniversaries of 18 July 2019. AssetMark
Financial Holdings, Inc. uses the Black-Scholes options pricing model to estimate the fair value of Stock Options.
(iii) Restricted Stock Units (RSUs)
In connection with the IPO, AssetMark Financial Holdings, Inc. issued Restricted Stock Units to certain officers covering an
aggregate of 85,737 shares of the common stock. Each of these Restricted Stock Units is scheduled to vest in substantially
equal installments on each of the first three anniversaries of 18 July 2019. During 2020 and 2021 AssetMark Financial Holdings,
Inc. issued RSUs to all officers, certain employees and independent directors of the board, respectively. Most of these RSUs
are scheduled to vest in substantially equal installments on each of the first four anniversaries of the date of grant.
(iv) Stock Appreciation Rights (SARs)
On 9 June 2020, AssetMark Financial Holdings, Inc. issued stock appreciation to certain officers with respect to 831,902 shares
of its common stock under the 2019 Equity Incentive Plan. Each SAR has a strike price equal to the fair market value of the
common stock of AssetMark Financial Holdings, Inc. on the date of grant and is scheduled to vest and become exercisable
insubstantially equal installments on each of the first four anniversaries of 9 June 2020. Upon exercise, each of these SARs
will be settled in shares of AssetMark Financial Holdings, Inc. common stock with a value equal to the excess, if any, of the
fair market value of its common stock measured on the exercise date over the strike price. In July 2021, the Company issued
SARs to certain officers. Each SAR has a strike price equal to the excess, if any, of the fair market value of its common stock
measured on the exercise date over the strike price and is scheduled to vest and become exercisable in substantially equal
installments on each of the first four anniversaries of the date of grant.
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63 Company-level statement of financial position
As at 31 December
Note
2021
2020
Non-current assets
Property and equipment
3,615,505
3,427,464
Investment properties
1,076,056
1,216,252
Land-use rights and other intangible assets
703,870
490,003
Investments in subsidiaries
19,374,962
19,374,962
Interest in associates
14,340,539
11,317,184
Debt investment at amortised cost
25,070,430
18,959,784
Financial assets at fair value through other
comprehensive income
3,045,464
10,540,968
Financial assets at fair value through profit or loss
413,575
973,587
Refundable deposits
11,592,545
9,876,632
Deferred tax assets
95,545
-
Other non-current assets
236,102
254,168
Total non-current assets
79,564,593
76,431,004
Current assets
Accounts receivable
11,111,192
6,872,139
Other receivables and prepayments
6,808,866
6,001,078
Margin accounts receivable
115,449,652
100,819,185
Debt investment at amortised cost
7,121,850
11,160,237
Financial assets at fair value through other
comprehensive income
2,675,847
-
Financial assets held under resale agreements
7,626,638
9,983,827
Financial assets at fair value through profit or loss
244,323,460
182,706,227
Derivative financial assets
12,156,185
7,583,195
Clearing settlement funds
12,162,040
9,535,564
Cash held on behalf of brokerage clients
113,995,438
101,415,279
Cash and bank balances
13,174,219
11,830,586
Total current assets
546,605,387
447,907,317
Total assets
626,169,980
524,338,321
387
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ANNUAL REPORT 2021
As at 31 December
Note
2021
2020
Current liabilities
Short-term debt instruments issued
51,885,570
43,720,163
Placements from other financial institutions
14,018,721
4,815,236
Accounts payable to brokerage clients
109,926,597
100,723,551
Employee benefits payable
2,492,361
1,832,973
Other payables and accruals
79,333,190
35,725,842
Current tax liabilities
340,426
853,166
Financial assets sold under repurchase agreements
102,461,714
120,402,891
Financial liabilities at fair value through profit or loss
3,345,837
-
Derivative financial liabilities
11,156,741
6,906,379
Long-term bonds due within one year
32,173,714
11,419,059
Total current liabilities
407,134,871
326,399,260
Net current assets
139,470,516
121,508,057
Total assets less current liabilities
219,035,109
197,939,061
Non-current liabilities
Long-term bonds
86,457,372
79,734,524
Non-current employee benefits payable
5,405,693
5,619,040
Deferred tax liabilities
-
150,743
Other payable and accruals
469,962
463,243
Total non-current liabilities
92,333,027
85,967,550
Net assets
126,702,082
111,971,511
388
HUATAI SECURITIES
As at 31 December
Note
2021
2020
Equity
Share capital
54(b)
9,076,650
9,076,650
Other equity instruments
9,989,057
-
Treasury shares
(1,231,547)
(1,626,546)
Reserves
88,864,390
86,916,959
Retained profits
20,003,532
17,604,448
Total equity 126,702,082
111,971,511
Approved and authorised for issue by the board of directors on 30 March 2022.
Zhang Wei Zhou Yi
Chairman of the Board,Director Director,Chief Executive Officer,
Chairman of the Executive Committee
Effective for accounting periods beginning on or after
Amendments to IFRS 3, Reference to the Conceptual Framework 1 January 2022
Amendments to IAS 16, Property, Plant and Equipment Proceeds before Intended Use 1 January 2022
Amendments to IAS 37, Onerous Contracts —— Costing of Fulfiling a Contract 1 January 2022
Annual Improvements to IFRSs 2018-2020 Cycle 1 January 2022
Classification of Liabilities as Current or Non-current (Amendments to IAS 1) 1 January 2023
IFRS 17 Insurance Contracts and Amendments to IFRS 17 Insurance Contracts 1 January 2023
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
1 January 2023
Definition of Accounting Estimates (Amendments to IAS 8) 1 January 2023
Deferred Tax related to Assets and Liabilities arising from a Single Transaction
(Amendments to IAS 12)
1 January 2023
Sales or Contribution of Assets between an Investor and its Associate or Joint Venture
(Amendments to IFRS 10 and IAS 28)
Available for optional adoption
64 Possible impact of amendments, new standards and interpretations issued but not yet
effective for the year ended 31 December 2021
Up to date of issue of these financial statements, the IASB has issued a number of amendments, and a new standard, IFRS
17, insurance contracts, which are not yet effective for the year ended 31 December 2021 and have not been adopted in
these financial statements. These developments include the following which may be relevant to the Group.
The Group is in the process of making an assessment what the impact of these amendments is expected to be in the
period of initial application. So far it has been concluded that the adoption of them is unlikely to have a significant impact
on the Group’s results of operations and financial position.
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Operating Analysis
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ANNUAL REPORT 2021
65 Events after the reporting date
(a) Issuance of bonds
On 17 January 2022, the Company has publicly issued 1+1 year corporate bond with a nominal amount of RMB4 billion,
bearing interest at 2.75% per annum to qualified investors.
On 14 February 2022, the Company has publicly issued 3-year corporate bond with a nominal amount of RMB5 billion,
bearing interest at 2.79% per annum to qualified investors.
On 3 March 2022, Pioneer Reward Limited, a subsidiary of Huatai International Financial Holdings Limited, a wholly-owned
subsidiary of the Group, has publicly issued 3-year corporate bond with a nominal amount of USD1 billion, bearing interest
at 2.375% per annum.
On 24 March 2022, Huatai International Finance Limited, a subsidiary of Huatai International Financial Holdings Limited, has
issued four Medium Term Notes, with maturities between 6-month to 9-month, with a total nominal amount of USD300
million, bearing interest of 1.00% to 1.65% per annum.
On 25 March 2022, Huatai International Finance Limited, a subsidiary of Huatai International Financial Holdings Limited, has
issued 6-month Medium Term Note with a total nominal amount of USD50 million, bearing interest at 0.95% per annum.
(b) Issuance of perpetual subordinated bond
On 26 January 2022, the Company issued the perpetual subordinated bond (“22 Huatai Y1) amounting to RMB2.7 billion
with an initial interest rate of 3.49%. The perpetual subordinated bonds have no fixed maturity dates and the Company has
an option to redeem the bonds at principal amounts plus any accrued interest on the fifth interest payment date or any
interest payment date afterwards.
The interest rate for perpetual subordinated bonds is fixed in the first 5 years and will be repriced every 5 years. The repriced
interest rate is determined as the sum of the current base rate and the initial spread plus 300bp. The current base rate is
defined as the average yield of 5 years treasury from the interbank fixed rate bond yield curve published on China Bond
webpage 5 working days before the adjustment.
The issuer has the option to defer interest payment, except in the event of mandatory interest payments, so that at each
interest payment date, the issuer may choose to defer the interest payment to the next payment date for the current period
as well as all interest and accreted interest already deferred, without being subject to any limitation with respect to the
number of deferrals. Of which, mandatory interest payment events are limited to dividend distributions to ordinary equity
holders and reductions of registered capital.
(c) Provision of debt guarantees for contingent liabilities formed and financial implications after
accounting periods
In March 2022, the Company, as guarantor, entered into a guarantee agreement with Citi International Limited (as trustee)
to provide an unconditional and irrevocable guarantee for the USD1 billion Bonds issued by Pioneer Reward Limited, a
subsidiary of the Group. The amount of the guarantee shall not exceed the principal, interest and other related expenses of
the above bonds.
(d) Profit distribution plan after accounting periods
On 30 March 2022, based on the total ordinary shares of 9,076,650,000 of the Company deducting 45,278,495 shares
deposited in the Company's special securities account for repurchase and 1,060,973 A shares to be repurchased and
cancelled (i.e. on the basis of 9,030,310,532 shares), the Board proposed cash dividends of RMB4.50 (tax inclusive) per
10 ordinary shares, with total cash dividend amounting to RMB4,063 million (tax inclusive). The total amount of the
actual dividend distribution will be calculated based on the total number of A shares entitled to dividend distribution on
the registration date of A share shareholders. The proposal is pending for the approval of the general meeting of the
shareholders. The cash dividends are not recognised as a liability as at 31 December 2021.
390
HUATAI SECURITIES
INDEX OF DOCUMENTS FOR INSPECTION
Index of Documents for Inspection
Financial statements carrying the signature and seal of the Company’s legal
representative, person in charge of accounting and head of accounting department
Audit report carrying the seal of the accounting firm and the signature and seal of
the certified public accountant
Original copies of all documents and announcements of the Company publicly
disclosed during the Reporting Period
Articles of Association
Chairman of the Board: Zhang Wei
Date of Submission as Approved by the Board of Directors: March 30, 2022
INFORMATION DISCLOSURE OF SECURITIES COMPANIES
I.MAJOR ADMINISTRATIVE APPROVALS OF THE COMPANY
1. Reply on Opinions Regarding Conducting Commodity Futures Market Making Business by Huatai Securities (Ji Gou Bu Han
[2021] No. 177) dated January 18, 2021;
2. Approval for Restricted Share Incentive Scheme of A Shares of Huatai Futures (Draft) (Su Cai Jin [2021] No. 12) dated
January 29, 2021;
3. Approval for the Registration of Public Issuance of Perpetual Subordinated Corporate Bonds to Professional Investors by
Huatai Securities Co., Ltd. (Zheng Jian Xu Ke [2021] No. 2918) dated September 6, 2021;
4. Letter on the Proposed Capital Increase by Huatai Securities Co., Ltd. to Hong Kong Subsidiary (Ji Gou Bu Han [2021] No.
3320) dated October 28, 2021;
5. Regulatory Opinions on Application for Conducting Pilot Business of Account Management Function Optimization by
Huatai Securities Co., Ltd. (Ji Gou Bu Han [2021] No. 3756) dated November 30, 2021.
II. RESULTS OF CLASSIFICATION BY REGULATORY AUTHORITIES
1. In 2019, the Company was rated Class AA under Category A according to the classification of securities companies.
2. In 2020, the Company was rated Class AA under Category A according to the classification of securities companies.
3. In 2021, the Company was rated Class AA under Category A according to the classification of securities companies.
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ANNUAL REPORT 2021
APPENDIX
I. MAIN BUSINESS QUALIFICATIONS
The Company was entitled to become the members of the Shanghai Stock Exchange, the Shenzhen Stock Exchange and
Beijing Stock Exchange, and Securities Association of China, to engage in the clearing of warrants of China Securities
Depository and Clearing Corporation Limited and to participate in the clearing of China Securities Depository and Clearing
Corporation Limited. Besides, the Company also has the following main business qualifications:
No. Type of License Approval Department Years
1 National interbank market access qualification PBOC January 2000
2 Qualification for online entrusted securities brokerage business CSRC May 2001
3 Qualification for distributing open-end securities investment funds CSRC February 2003
4 Qualification for entrusted investment management business CSRC March 2003
5 Value-added telecommunications business license
Jiangsu Communications
Administration
July 2004
6 Pilot securities firm for relevant innovative activities Securities Association of China March 2005
7 Qualification for underwriting short-term financing bills PBOC August 2005
8 License for foreign exchange operation in the securities business
State Administration of
Foreign Exchange
November 2006
9 Foreign exchange registration certificate for overseas investment Jiangsu Provincial Bureau of SAFE December 2006
10 Qualification for agency business of stock transfer Securities Association of China June 2007
11
Qualification of tier-1 dealer on the integrated e-platform for fixed income
securities
Shanghai Stock Exchange August 2007
12
Qualified domestic institutional investor (QDII) qualification for overseas
securities investment management business
CSRC December 2007
13
Qualification to provide intermediary introduction business for Great Wall Weiye
Futures Co., Ltd.
CSRC April 2008
14 Qualified investor qualification in block trade system Shanghai Stock Exchange June 2008
15
Qualification to incorporate wholly-owned specialized subsidiaries to engage in
direct investment business
CSRC July 2008
16 Obtain a stock index futures trading code and a hedging limit China Financial Futures Exchange June 2010
17 Pilot program of securities margin trading CSRC June 2010
18
Qualification of the dealer for credit risk mitigation tools and creator for credit
risk mitigation certificates
National Association of Financial
Market Institutional Investors
December 2010
19
Change the securities brokerage business (the business in Jiangsu, Shanghai,
Zhejiang, Anhui, Shandong, Heilongjiang, Jilin, Liaoning, Beijing, Tianjin, Hebei,
Henan, Shaanxi, Shanxi, Ningxia, Inner Mongolia, Gansu, Xinjiang, Qinghai only)
within the original business scope to securities brokerage business, change
the securities underwriting and sponsorship business (the relevant business
on the Shanghai Stock Exchange only) to securities underwriting business (the
underwriting of government bonds, debt financing instruments of non-financial
enterprises only), and reduce the financial advisory business relating to securities
trading and securities investment activities
CSRC August 2011
20 Provide trading seats to insurance institutional investors
China Insurance
Regulatory Commission
January 2012
21 Pilot program of bonds collateralized quotation repurchase business CSRC January 2012
22 Bonds collateralized quotation repurchase business Shanghai Stock Exchange February 2012
23 CSI 300ETF liquidity service provider Shanghai Stock Exchange May 2012
24 Innovative brokerage deposit business CSRC June 2012
25
Participate in interest rate swap trading by using the Company’s proprietary
funds
Jiangsu Securities Regulatory Bureau August 2012
26 Pilot program of margin refinancing
China Securities Finance
Corporation Limited
August 2012
27 Pilot program of agreed repurchase type securities trading CSRC September 2012
28
Lead underwriting business for non-financial enterprises debt financing
instruments in the interbank market
National Association of Financial
Market Institutional Investors
November 2012
29
Qualification and transaction code for conducting arbitrage and speculative
trading of CSI 300 index-futures
China Financial Futures Exchange December 2012
30 Agency sale of financial products Jiangsu Securities Regulatory Bureau January 2013
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HUATAI SECURITIES
No. Type of License Approval Department Years
31 Qualification for the agreed repurchase type securities trading business Shenzhen Stock Exchange January 2013
32
Pilot comprehensive custody business for private funds, which can provide
comprehensive custody services, such as asset custody, settlement,
computation of net value, investment control, custody report and etc.,for private
securities investment funds (limited partnership)
Institutional Supervision
Department of the CSRC
February 2013
33 Qualification of margin refinancing business
China Securities Finance
Corporation Limited
February 2013
34 Insurance fund investment manager
China Insurance Regulatory
Commission
March 2013
35
Operate recommendation and brokerage business on the National Equities
Exchange and Quotations as the lead securities firm
National Equities Exchange and
Quotations Company Limited
March 2013
36
Qualification to submit filing materials for witnessing the opening of customers’
securities accounts
China Securities Depository and
Clearing Corporation Limited
April 2013
37
Qualification of financial bonds (including policy finance bonds) underwriting
business
Jiangsu Securities Regulatory Bureau June 2013
38
Conducting stock pledge-style repo transaction business for securities listed on
the Shanghai Stock Exchange or Shenzhen Stock Exchange
Shanghai Stock Exchange
and Shenzhen Stock Exchange
June 2013
39 Treasury bonds futures business Jiangsu Securities Regulatory Bureau September 2013
40
Qualification to conduct treasury bonds futures arbitrage and hedging
businesses
CSRC and China Financial Futures
Exchange
September 2013
41 Qualification to conduct asset management share transfer business Shenzhen Stock Exchange September 2013
42 Qualification to carry out equity return swaps business Securities Association of China September 2013
43 Qualification to conduct pre-issuance of treasury bonds Shanghai Stock Exchange October 2013
44 Pass the on-site inspection on stock options Shanghai Stock Exchange June 2014
45
Operate market-making business on the National Equities Exchange and
Quotations as a market maker, namely market-making qualification on the
National Equities Exchange and Quotations
National Equities Exchange and
Quotations Company Limited
July 2014
46 Trial market maker on the interbank market National Inter-Bank Funding Center July 2014
47 Pilot program of financing by exercising the share incentive scheme business Shenzhen Stock Exchange August 2014
48
Qualification of capital payment services for clients that could provide various
payment services for investors such as deposits collection, mobile recharging,
online store consumption, sales return, water fee and credit card payment
Securities Fund Supervision
Department of the CSRC
August 2014
49 Qualification of custodian for securities investment funds CSRC September 2014
50 Qualification for pilot operations of Internet-based securities business Securities Association of China September 2014
51 OTC qualification Securities Association of China September 2014
52 Qualification to conduct Southbound trading under A Shares trading seats Shanghai Stock Exchange October 2014
53 Pilot program on the OTC market Securities Association of China October 2014
54
Pilot program of restricted securities lending under share incentive schemes of
listed companies
Shenzhen Stock Exchange December 2014
55
Qualification of practicing on an authentic basis and brokerage business for
stock option businesses
Shenzhen Stock Exchange December 2014
56
Qualification for stock option trading participant,stock option brokerage and
proprietary business trading
Shanghai Stock Exchange January 2015
57 Qualification for stock options market making business CSRC January 2015
58 Main market maker of SSE 50ETF option contracts Shanghai Stock Exchange January 2015
59
Qualification of standard interest rate swap and forward centralized settlement
of standard bonds
Shanghai Clearing House April 2015
60 Qualification of participating in the net settlement of bond trade Shanghai Clearing House April 2015
61
Provide private equity with valuation and calculation service, share registration
service, sales backstage service support and other outsourcing services, as well
as other value-added services derived from the above services
Asset Management Association of
China
April 2015
62
Qualification of pilot innovative business for one-way video verification of
investors’ identities
China Securities Depository and
Clearing Corporation Limited
June 2015
63
Permission to conduct Southbound trading under Shenzhen-Hong Kong stock
connect
Shenzhen Stock Exchange November 2016
64
Agency qualification for subscription, purchasing and redeeming of gold ETF in
spot
Shanghai Gold Exchange June 2017
65 Pilot program of cross-border business CSRC December 2017
66 Qualification of tier-1 dealer on OTC options CSRC July 2018
67 Carry out credit derivatives business CSRC December 2018
68 Qualification of main market maker of funds listed on the SSE Shanghai Stock Exchange January 2019
69 Conducting credit protection contract business Shanghai Stock Exchange February 2019
70 Conducting market making business of treasury bond futures CSRC May 2019
71 Pilot Program of Foreign Exchange Settlement and Sales Business
State Administration
of Foreign Exchange
August 2019
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No. Type of License Approval Department Years
72 Conducting credit protection certificate business Shanghai Stock Exchange December 2019
73 Conducting market making business of commodity options CSRC December 2019
74 Conducting market making business of stock index options CSRC December 2019
75 Conducting pilot fund investment advisory business CSRC February 2020
76 Conducting agency for trading of foreign exchange Business
State Administration of Foreign
Exchange
July 2020
In 2021, the individual business qualifications obtained by the Company mainly include
1 Conducting market making business of commodity futures CSRC January 2021
2 Conducting pilot business of account management function optimization CSRC November 2021
3 Engaging in “Southbound Trading” business PBOC December 2021
394
HUATAI SECURITIES
II. LIST OF BRANCH OFFICES AND SECURITIES BRANCHES
1.Establishment of Branch Offices of the Company
As of the end of the Reporting Period, the basic information of the establishment of branch offices of the Company is as
follows:
Unit: Ten Thousand Yuan Currency: RMB
No Name Address
Date of
establishment
Registered
capital (or
working
capital) Zip code
Person in
charge
Contact
number Business scope
1
Anhui
Branch
6 &7F, Block A,
Feilishidai Square
Commercial
Complex, No. 310
Suixi Road, Luyang
District, Hefei
August 25, 2014 10,000 230011 Chen Zhijun 0551-64297088
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending; agency sale of securities
investment funds; agency sale of
financial products.
2
Beijing
Branch
Room 1501, 15/F,
Block 28, Fengsheng
Hutong, Xicheng
District, Beijing
May 28, 2010 500 100032 Zhou Erli 010-63211377
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending; agency sale of securities
investment funds; agency sale of
financial products.
3
Changzhou
Branch
No. 9, North Heping
Road, Changzhou
April 16, 2014 2,000 213003
Yuan
Hongbin
0519-81006688
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending; agency sale of securities
investment funds; agency sale of
financial products.
4
Fujian
Branch
Unit 10D, Block A,
Tefang Portman
Wealth Center, No.81
Zhanhong Road,
Siming District,
Xiamen
September 18,
2014
2,000 361004
Chu
Rentang
0592-2997899
Securities brokerage; securities
investment consulting; agency
sale of securities investment
funds; margin financing and
securities lending business;
agency sale of financial products;
securities underwriting (limited
to ancillary works such as
project contracting, project
information transmission and
recommendation and customer
relationship maintenance of
underwriting of government
bonds, debt financing instruments
of non-financial enterprises and
financial bonds (including policy-
bank bonds) only).
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Unit: Ten Thousand Yuan Currency: RMB
No Name Address
Date of
establishment
Registered
capital (or
working
capital) Zip code
Person in
charge
Contact
number Business scope
5
Guangdong
Branch
Unit 02, 03, 36/F,
No. 10 Huaxia Road,
Tianhe District,
Guangzhou
May 19, 2012 500 510620 Liu Yong 020-88830128
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending; agency sale of securities
investment funds; agency sale of
financial products.
6
Henan
Branch
No. 16, Nongye Road
East, Jinshui District,
Zhengzhou
April 16, 2014 2,000 450008
Tao
Mingqing
0371-89998299
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
7
Heilongjiang
Branch
3/F, Block B, Aocheng
International, No.
239 Xuanhua Street,
Nangang District,
Harbin, Heilongjiang
Province
May 28, 2010 500 150001
Wang Haibin
0451-51994000Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products; management
of local business departments.
8
Hubei
Branch
24/F, Unit 6, Building
6-7, Wuhan 1818
Center (Phase 2), No.
109 Zhongbei Road,
Shuiguohu Street,
Wuchang District,
Wuhan
March 19, 2012 500 430070 Min Jie 027-87739318
Securities brokerage; securities
investment consulting; securities
underwriting (limited to ancillary
works such as project contracting,
project information transmission
and recommendation
and customer relationship
maintenance of underwriting
of government bonds, debt
financing instruments of non-
financial enterprises and financial
bonds (including policy-bank
bonds) only); margin financing
and securities lending business;
agency sale of securities
investment funds; agency sale of
financial products; management
of securities branches at Hubei of
Huatai Securities Co., Ltd.
9
Hunan
Branch
Rooms 1301-1305,
1313-1316, Building 4
and 5, Huayuanhua
Center, No 36,
Section 2, Middle
Xiangjiang Road,
Tianxin District,
Changsha, Hunan
Province
May 27, 2014 500 410015 Deng Jing 0731-85120568
Securities brokerage; securities
investment consulting; agency
sale of securities investment
funds; margin financing and
securities lending business;
agency sale of financial products;
securities underwriting and
sponsoring (limited to ancillary
works such as project contracting,
project information transmission
and recommendation
and customer relationship
maintenance).
396
HUATAI SECURITIES
Unit: Ten Thousand Yuan Currency: RMB
No Name Address
Date of
establishment
Registered
capital (or
working
capital) Zip code
Person in
charge
Contact
number Business scope
10
Jiangxi
Branch
No. 1416,
Jinggangshan
Avenue, Xihu District,
Nanchang, Jiangxi
Province
November 3,
2014
500 330002 Wan Bin 0791-86600577
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only); margin
financing and securities lending
business; agency sale of securities
investment funds; intermediary
introduction business for the
futures companies; agency
sale of financial products;
management of securities
branches at Jiangxi.
11
Liaoning
Branch
Units 1, 2, 3 and 4, 15/
F, Block B, Enterprise
Square, No. 125
Qingnian Street,
Shenhe District,
Shenyang City,
Liaoning Province
June 3, 2011 500 110004 Chen Min 024-31881777
Securities brokerage; securities
investment consulting; margin
financing and securities lending
business; agency sale of securities
investment funds; intermediary
introduction business for the
futures companies; agency
sale of financial products;
securities underwriting (limited
to underwriting of government
bonds, debt financing instruments
of non-financial enterprises and
financial bonds (including policy-
bank bonds) only).
12
Nanjing
Branch
No. 90 Zhongshan
Road East, Qinhuai
District, Nanjing
April 9, 2010 2,000 210002
Wang
Yansheng
025-84791077
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
13
Nantong
Branch
Fangtian Building,
No. 6 Yaogang Road,
Nantong, Jiangsu
Province
May 28, 2010 500 226000 Ren Qiaojian 0513-85529888
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
14
Shandong
Branch
Rooms 2101 & 2104,
21/F, Block A, Yinfeng
Fortune Plaza, No. 1
West Long’ao Road,
Lixia District, Jinan
City
April 16, 2014 2,000 250061 Li Gang 0531-55686555
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
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Unit: Ten Thousand Yuan Currency: RMB
No Name Address
Date of
establishment
Registered
capital (or
working
capital) Zip code
Person in
charge
Contact
number Business scope
15
Shanghai
Branch
Room 2201, No. 18
Dongfang Road,
China (Shanghai)
Pilot Free Trade Zone
May 28, 2010 500 200120
Lu
Chunguang
021-28972296
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
16
Shenzhen
Branch
8A, Fund Mansion,
No. 5999, Yitian
Road, Lianhua
Street, Futian District,
Shenzhen
March 19, 2012 500 518048
Wang
Lianfen
0755-82492098
Securities brokerage; securities
underwriting (limited to
contracting); securities
investment consulting; margin
financing and securities lending
business; agency sale of securities
investment funds; agency sale of
financial products.
17
Sichuan
Branch
Rooms 2503, 2504,
2505, 2506, 2507
and 2508, 25/F,
Unit 1, Building 1,
China Overseas
Chinese Financial
Center, No. 33, Jiaozi
Avenue, Hitech Zone,
Chengdu, China
(Sichuan) Pilot Free
Trade Zone
May 19, 2012 500 610091 Li Hui 028-8125398
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
18
Suzhou
Branch
4/F and 5/F, No.
102 Xinshi Road,
Canglang District,
Suzhou
May 28, 2010 500 215000 Liu Xiaobing 0512-67579666
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
19
Taizhou
Branch
No. 22, Yingchun
Road West, Hailing
District, Taizhou,
Jiangsu Province
August 4, 2014 2,000 225300 Wang Yujie 0523-86234237
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
20
Tianjin
Branch
Block HI on 1/F, and
Block E-I on 5/F,
North Finance
Building, No. 5 Youyi
Avenue, Hexi District,
Tianjin
May 28, 2010 500 300211 Li Yijun 022-59657718
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
398
HUATAI SECURITIES
Unit: Ten Thousand Yuan Currency: RMB
No Name Address
Date of
establishment
Registered
capital (or
working
capital) Zip code
Person in
charge
Contact
number Business scope
21 Wuxi Branch
No. 325, Jiefang
Road West, Wuxi,
Jiangsu Province
June 11, 2014 2,000 214000 Lu Rong 0510-82723020
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
22
Northwest
Branch
Room 21401, Unit 2,
Building 2, CROSS
Wanxianghui, No.
21 Gaoxin Six Road,
Zhangba Sub-
district Office, High
– Tech Zone, Xi’an,
Shaanxi Province
August 5, 2019 – 710000 Gao Hong 029-87897055
Securities brokerage; securities
investment consulting; agency
sale of securities investment
funds; margin financing and
securities lending; agency
sale of financial products;
securities underwriting (limited
to underwriting of government
bonds, debt financing instruments
of non-financial enterprises and
financial bonds (including policy
financial bonds) only).
23
Xuzhou
Branch
No. 104, Block B, 3/F,
Block B, Baolong
Square, West side
of the Government
seat of Yunlong
District, North side of
Heping Ave, Yunlong
District, Xuzhou
April 16, 2014 2,000 221001
Wang
Minsheng
0516-85602988
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
24
Yancheng
Branch
Room 201, Building
6, Financial City, No.
5 Century Avenue,
Yancheng City
March 24, 2014 2,000 224002
Zhang
Tingwen
0515-88216888
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
25
Yangzhou
Branch
No. 406, Wenchang
Middle Road,
Guangling District,
Yangzhou
August 4, 2014 2,000 225001 Ji Chunbo 0514-82196688
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
26
Yunnan
Branch
6/F, Block C,
Dushi Mingyuan
Community, Middle
Renmin Road,
Kunming, Yunnan
Province
February 25,
2014
500 650021 Yin Tianshui 0871-65951973
Securities brokerage; securities
investment consulting; agency
sale of securities investment
funds; margin financing and
securities lending business;
agency sale of financial products;
securities underwriting (limited
to underwriting of government
bonds, debt financing instruments
of non-financial enterprises and
financial bonds (including policy-
bank bonds) only).
399
Financial Report and
Documents for Inspection
Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
Unit: Ten Thousand Yuan Currency: RMB
No Name Address
Date of
establishment
Registered
capital (or
working
capital) Zip code
Person in
charge
Contact
number Business scope
27
Zhejiang
Branch
Rooms 2302,
2304, 2305,
2306 and 2404,
Block 1, Sunyard
International
Creative Center
Building, No. 1750,
Jianghong Road,
Binjiang District,
Hangzhou, Zhejiang
Province
March 25, 2013 500 310052 Wang Jie 0571-86698700
Securities brokerage; securities
investment consulting; agency
sale of securities investment
funds; margin financing and
securities lending business;
agency sale of financial products;
securities underwriting (limited
to underwriting of government
bonds, debt financing instruments
of non-financial enterprises and
financial bonds (including policy-
bank bonds) only).
28
Zhenjiang
Branch
Rooms 101, 201
and 301, Building 1,
Huangshan Yaju, No.
6 Huangshan South
Road, Zhenjiang,
Jiangsu Province
March 24, 2014 2,000 212000
Dong
Kaisong
0511-85037099
Securities brokerage; securities
investment consulting; securities
underwriting (limited to
underwriting of government
bonds, debt financing instruments
of non-financial enterprises
and financial bonds (including
policy-bank bonds) only);
margin financing and securities
lending business; agency sale
of securities investment funds;
agency sale of financial products.
400
HUATAI SECURITIES
2. Number and distribution of Securities Branches
As of the end of the Reporting Period, the number and distribution of securities branches of the Company are as follows:
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
1
Anhui 5
Hefei
Securities Branch in Huaining
Road, Hefei
Rooms 1104 and 1211-1213, Block
C, Landmark Plaza, No. 288,
Huaining Road, Zhengwu District,
Hefei City
230022 Fan Huijuan 0551-65175008
2
Securities Branch in
Chuangxin Road, Hefei
4F, Block C, Chuangxin
Department, No. 2760,
Chuangxin Road, High-tech
District, Hefei City, Anhui Province
230088 Hu Longqi 0551-62686969
3 Ma’anshan
Securities Branch in Hudong
Middle Road, Ma’anshan
No. 1046, Hudong Middle Road,
Huashan District, Ma’anshan City
243000 Gao Guosheng 0555-2963619
4 Chuzhou
Securities Branch in Fengle
Avenue, Chuzhou
Nos. 1112 & 1114, Commercial
Block S3, No. 1118 Fengle Avenue
(Yutianxia South Garden),
Chuzhou City, Anhui Province
239001 Lu Rudong 0550-3019976
5 Tongling
Securities Branch in Huaihe
Avenue, Tongling
Shop 142, 1/F, No. 230A, 2/F, Huijin
Building, Tongling Trade Building,
Middle Section of Huaihe
Avenue, Tongguan District,
Tongling City,
244000 Hu Jing 0562-2801988
6
Beijing 6 Beijing
Securities Branch in
Dongsanhuan North Road,
Beijing
Inner Flat 01, No. 102, 1/F (01), Block
27, Dongsanhuan North Road,
Chaoyang District, Beijing
100062 Wei Na 010-59725337
7
Securities Branch in Suzhou
Street, Beijing
Room 901-903, 9/F Weiya
Building, Block 18, No. 29 Suzhou
Street, Haidian District, Beijing
100080 Li Shuai 010-62523799
8
Securities Branch in
International Finance and
Economy Center, Xisanhuan,
Beijing
Room 403, 4/F, No. 87 Xisanhuan
North Road, Haidian District,
Beijing
100048 Chen Xi 010-68733708
9
Securities Branch in Yonghe
Temple, Beijing
Room 501, 5/F, Block F, Room 116,
1/F,
100007 Zhao Youqiang 010-84273989
10
Securities Branch in Yuetan
South Street, Beijing
& Room 216, 2/F, Block D, No.
28 Andingmen East Street,
Dongcheng District, Beijing
100045 Yang Junpeng 010-68058688
11
Securities Branch in Xueyuan
South Road, Beijing
3/F Wanfeng Yihe Business Club,
No. 12A Yuetan South Street,
Xicheng District, Beijing
100081 Liu Zhifeng 010-82263313
12
Inner
Mongolia 3
Baotou
Securities Branch in
Huanghe Street, Baotou
No. 87, Huanghe Street, Xitu
High-tech Zone, Baotou City,
Inner Mongolia Autonomous
Region
014040 Yin Tao 0472-4136027
13
Securities Branch in Gangtie
Street, Baotou
2/F, No. 15 Gangtie Street,
Qingshan District, Baotou City,
Inner Mongolia Autonomous
Region
014010 Ma Xiaoju 0472-6867886
14 Hohhot
Securities Branch in Xinhua
East Street, Saihan District,
Hohhot
Room 1707, 17/F, Block A, Wanda
Plaza Complex, No. 26, Xinhua
East Street, Saihan District,
Hohhot City, Inner Mongolia
Autonomous Region
010010 Qi Hong 0471-3251997
15 Hebei 1 Shijiazhuang
Securities Branch in Ziqiang
Road, Shijiazhuang
Unit 0-103A, Commercial Podium
of Office Building (1/F), Zhongjiao
Fortune Center T1/T2, No. 118
Ziqiang Road, Qiaoxi District,
Shijiazhuang City, Hebei Province
050051 Han Jiancai 0311-66788203
16
Fujian 4
Fuzhou
Securities Branch in North
Wuyi Road, Fuzhou
19/F, Block 3, Zhengxiang Center,
No. 153 North Wuyi Road, Shuibu
Street, Gulou District, Fuzhou City
350009 Liu Biqing 0591-88037887
17 Quanzhou
Securities Branch in Jiuyi
Street, Quanzhou
4/F, Baiyuan Building, Jiuyi Street,
Licheng District, Quanzhou City
362000 Chen Mingfeng 0595-22187188
18 Xiamen
Securities Branch in Xiahe
Road, Xiamen
Rooms 201 & 202, Block B, Unit
One, Haiyi Building, No. 668 Xiahe
Road, Siming District, Xiamen
City
361004 Cai Hao 0592-2997888
401
Financial Report and
Documents for Inspection
Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
19 Fujian 4 Zhangzhou
Securities Branch in Shuixian
Avenue, Zhangzhou
Room 101, Room 403, Room 404,
Building B, No. 88 Shuixian Street,
Longwen District, Zhangzhou
City, Fujian Province
363000 Liu Huafeng 0596-2900350
20
Guangdong
23
Foshan
Securities Branch in Denghu
East Road, Foshan
Flat A, actually 26/F (nominally
29/F), Block 2, Youbang Financial
Centre, No. 1, Denghu East Road,
Guicheng Street, Nanhai District,
Foshan City
528200 Yang Siyu 0757-29808978
21
Guangzhou
Securities Branch in Zhujiang
West Avenue, Guangzhou
17/F (self-edited rooms 05,
06 and 07), No. 15 Zhujiang
West Avenue, Tianhe District,
Guangzhou City
510000 Zheng Chengbin 020-37279969
22
Securities Branch in Wanda
Plaza, Panyu District,
Guangzhou
Rooms 103, 105, 107, 109, Huizhi
3rd Road, Nancun County, Panyu
District, Guangzhou City
510440 Zhu Daoming 020-39213388
23
Securities Branch in Middle
Guangzhou Avenue,
Guangzhou
Rooms 103, 3205 and 3206, No.
307 Middle Guangzhou Avenue,
Yuexiu District, Guangzhou City
510220 Luo Fanglin 020-84133637
24
Securities Branch in Huanshi
East Road, Guangzhou
Rooms S1201, 1218-23, 12/F, South
Tower, No. 371-375 Huanshi East
Road, Yuexiu District, Guangzhou
City, Guangdong Province
510060 Cheng Feng 020-83853823
25
Securities Branch in Xingmin
Road, Guangzhou
Rooms 906-911, No. 222-3,
Xingmin Road, Tianhe District,
Guangzhou
510620 Lin Hao 020-89286707
26
Securities Branch in
Tianhecheng, Guangzhou
Rooms 3605, 3606, 3607, 36/F,
Yuehai Tianhecheng Building
(namely, Tianhecheng East
Tower), No. 208 Tianhe Road,
Tianhe District, Guangzhou City
510620 Tang Jia 020-22031389
27
Securities Branch in
Yuncheng West Road,
Guangzhou
Rooms 4002, 4003, 4004, No. 888
Yuncheng West Road, Baiyun
District, Guangzhou City
510420 Li Yong 020-86273767
28 Zhongshan
Securities Branch in
Zhongshan Fifth Road,
Zhongshan
No. 2 of Unit 01, 1/F, Block 3,
Zima Benteng Square, No. 2
Zhongshan Fifth Road, Eastern
District, Zhongshan City
528403 Liao Xiwu 0760-89823338
29 Shantou
Securities Branch in
Changping Road, Shantou
Rooms 103 and 202, North Tower,
China Resources Building,
No. 95 Changping Road,
Longhu District, Shantou City,
Guangdong Province
515041 Chen Yu 0754-89898179
30
Shenzhen
Securities Branch in Qianhai,
Shenzhen
Rooms 101, 102, 201, 202, 301
and 402, Building B7, Qianhai
Shenzhen-Hong Kong Fund
Town, No. 128 Guiwan Fifth
Road, Nanshan Sub-district,
Qianhai Shenzhen-Hong Kong
Cooperation Zone, Shenzhen
City
518031 Cheng Tao 0755-25889919
31
Securities Branch in Caitian
Road, Shenzhen
1/F, 2/F, Block 3, Fuyuan Building,
No. 2014-9 Caitian Road, Futain
District, Shenzhen City
518026 Ma Jianmin 0755-82993655
32
Securities Branch in China
Resources Building, Keyuan
South Road, Shenzhen
Rooms L1805 and L1806, China
Resources Building, No. 2666
Keyuan South Road, Haizhu
Community, Yuehai Sub-district,
Nanshan District, Shenzhen
518059 Xiao Kang 0755-23819115
33
Securities Branch in
Longgang Avenue, Shenzhen
102S, Block 2, Vanke Times
Square, Shangjing Community,
Longcheng Sub-district,
Longgang District, Shenzhen City
(at the junction of Longgang
Avenue and Longcheng Avenue)
518172 Gao Jian 0755-85205902
34
Securities Branch in Baidu
International Building,
Keyuan Road, Shenzhen
33/F, East Tower, Baidu
International Building, Xuefu
Road East, Yuehai Street,
Nanshan District, Shenzhen City
518040 Wang Shaolian 0755-82531008
402
HUATAI SECURITIES
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
35
Guangdong
23
Shenzhen
Securities Branch in Shennan
Avenue, Shenzhen
Room 2501A, Block B, Phase I
Donghai International Center,
No. 7888 Shennan Road,
Donghai Community, Xiangmihu
Street, Futian District, Shenzhen
City
518040 Li Chendong 0755-82719339
36
Securities Branch in China
Resources Land Building,
Shennan Avenue, Shenzhen
Rooms 2904, 2905 and 2906,
Block D, China Resources Land
Building, No. 19 Kefa Road,
Dachong Community, Yuehai
Sub-district, Nanshan District,
Shenzhen
518057 Song Tao 0755-25870808
37
Securities Branch in Hongli
Road, Shenzhen
No. BC, 9/F, Block A, CIS
Commercial Center, No. 1061
Xiangmei Road, Xiangmihu
Street, Futian District, Shenzhen
City
518000 Li Xiaoshan 0755-82080300
38
Securities Branch in Fund
Building, Shennan Avenue,
Shenzhen
8B, Fund Building, No. 5999 Yitian
Road, Lianhua Street, Futian
District, Shenzhen City
518053 Cao Mengming 0755-26626388
39
Securities Branch in
Rongchao Business Center,
Yitian Road, Shenzhen
2201-2212, Building A, Rongchao
Business Center, No. 6003 Yitian
Road, Fuxin Community, Lianhua
Street, Futian District, Shenzhen
City
518026 Wu Sheng 0755-83767319
40
Securities Branch in Yitian
Road, Shenzhen
Flats 02, 03, 04, 17/F, China Travel
Service HK Building, No. 4011
Shennan Avenue, Futian District,
Shenzhen City
518048 Yang Dongyang 0755-82766226
41
Securities Branch in Zhuzilin
4th Road, Shenzhen
Flats 10H, 10I, 10J, China Economy
and Trading Building, No. 18 Zizhu
7th Road, Zhulin Community,
Xiangmihu Street, Futian District,
Shenzhen City
518041 Gu Guoxu 0755-82027636
42
Securities Branch in Zhongxin
Road, Houhai, Shenzhen
Units 1203, 1205 and 1206,
Xizhilang Building, No. 3033
Zhongxin Road, Weilan Coast
Community, Yuehai Street,
Nanshan District, Shenzhen
518048 Chen Shun 0755-27247971
43
Guangxi 2
Nanning
Securities Branch in Minzu
Avenue, Nanning
Rooms 702-704, 7/F, South
Office Building, Nanning China
Resources Center, No. 136-5,
Minzu Avenue, Qingxiu District,
Nanning
530029 Li Guangyi 0771-5570013
44 Wuzhou
Securities Branch in Xidi 3rd
Road, Wuzhou
No. 1 of 1/F and Rooms 2801-
2809 of 28/F, No. 19 Xidi 3rd Road,
Wuzhou City
543002 Qin Shumin 0774-3862288
45
Hainan 2
Haikou
Securities Branch in Guoxing
Road, Haikou
Room 3807, 38/F, New Hainan
Building, No. 5 Guoxing Road,
Meilan District, Haikou City,
Hainan Province
570102 He Ruijin 0898-66202789
46 Sanya
Securities Branch in Yingbin
Road, Sanya
Unit 1201, Yangguang Financial
Square, No. 360-1 Yingbin Road,
Jiyang District, Sanya City,
Hainan Province
572021 Zhao Yang 0898-88211669
47 Shanxi 1 Taiyuan
Securities Branch in Tiyu
Road, Taiyuan
No. 58, Tiyu Road, Xiaodian
District, Taiyuan City
030001 Wang Guoqi 0351-7775553
48
Henan 3 Zhengzhou
Securities Branch in Jingsan
Road, Zhengzhou
Guanghui Building, No. 15,
Jingsan Road, Jinshui District,
Zhengzhou City
450003 Shi Qianjin 0371-65585005
49
Securities Branch in Nongye
Road, Zhengzhou
No. 101, Floors 1-2, Building 1, No.
16, East Nongye Road, Jinshui
District, Zhengzhou City
450000 Zhou Rui 0371-60958371
50
Securities Branch in
Zijingshan Road, Zhengzhou
18/F (whole floor), Building
2, Zhengzhou Zhengshang
Lanhai Plaza, Erligang, Zijingshan
Road, Guancheng District,
Zhengzhou City
450008 Xia Mengfei 0371-58670567
403
Financial Report and
Documents for Inspection
Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
51
Heilongjiang 5
Harbin
Securities Branch in West
16th Street, Harbin
No. 15, West 16th Street, Daoli
District, Harbin City, Heilongjiang
Province
150010 Song Fei 0451-51531366
52
Securities Branch in Xuanhua
Street, Harbin
Floors 1-2, Block B, Aocheng
International, No. 239, Xuanhua
Street, Nangang District, Harbin
City
150001 Wang Jixiang 0451-51998768
53 Mudanjiang
Securities Branch in Xiyitiao
Road, Mudanjiang
No. 236, Xiyitiao Road, Xi’an
District, Mudanjiang City,
Heilongjiang Province
157001 Ma Xiuhui 0453-8111898
54 Suihua
Securities Branch in
Zhengyang Street,
Zhaodong, Suihua
2/F Office, ICBC Zhaodong
Branch, Zhengyang South 10th
Street, No. 3, Zhaodong, Suihua
City, Heilongjiang Province
151100 Sun Peng 0455-8182228
55 Daqing
Securities Branch in Xinchao
Street, Daqing
S10, Commercial Service
Building, Phase I Xinchao
Jiayuan Community, Ranghulu
District, Daqing City, Heilongjiang
Province
163400 Zheng Ye 0459-8971477
56
Jilin 3
Changchun
Securities Branch in
Minkang Road, Changchun
No. 855, Minkang Road,
Nanguan District, Changchun
City
130041 Cheng Bo 0431-81910599
57
Securities Branch in Ziyou
Avenue, Changchun
No. 1000, Ziyou Avenue,
Chaoyang District, Changchun
City
130021 Guo Jiayin 0431-81919187
58 Jilin
Securities Branch in Jiefang
East Road, Jilin City
No. 7 Branch, No. 2 Dongchang
Complex Building, No. 62
Jiefang East Road, Changyi
District, Jilin City, Jilin Province
132001 Zhou Laiying 0432-65128799
59
Hubei 29
Xiaogan
Securities Branch in Zijin
Road, Anlu
No. 1, Zijin Road, Anlu City, Hubei
Province
432600 Zou Yizhao 0712-5231718
60
Securities Branch in Xiyue
Avenue, Dawu
Xiyue Avenue, Dawu County,
Hubei Province
432800 Chen Junhong 0712-7226466
61
Securities Branch in Xiannv
Avenue, Hanchuan
No. 215, Xiannv Avenue,
Hanchuan City, Hubei Province
431600 Li Zhihua 0712-8296358
62
Securities Branch in
Changzheng Road,
Xiaogan
No. 29, Changzheng Road,
Xiaogan City, Hubei Province
432000 Zhang Hongkai 0712-2326827
63
Securities Branch in West
Main Street, Yingcheng
No. 22, Building 1 of Gucheng
Xindu, West Main Street,
Yingcheng City
432400 Pan Jianping 0712-3226017
64
Securities Branch in
Chaoyang Road, Yunmeng
No. 1, Chaoyang Road,
Yunmeng County, Hubei
Province
432500 Long Nina 0712-4338338
65
Enshi
Securities Branch in Jingui
Avenue, Enshi
No. 15, Jingui Avenue, Enshi City,
Hubei Province
445000 Feng Bo 0718-8237528
66
Securities Branch in Yezhou
Avenue, Jianshi
No. 109, Yezhou Avenue, Yezhou
Town, Jianshi County
445300 Chen Yan 0718-3230098
67
Securities Branch in
Chutian Road, Badong
No. 5 Chutian Road, Badong
County, Enshi Tujia and Miao
Autonomous Prefecture, Hubei
Province
444300 Wang Xinmao 0718-4332133
68
Securities Branch in
Fengxiang Avenue, Laifeng
No. 87, Fengxiang Avenue,
Laifeng County
445700 Si Guoyao 0718-6288118
69
Securities Branch in Nanbin
Avenue, Lichuan
Rooms 106 and 107, Block 8,
Nanbin Garden, No. 66 Nanbin
Avenue, Group 1, Wangjiawan
Village, Dongcheng Sub-
district Office, Lichuan City
445400 Qin Xiqiong 0718-7283339
70
Jingzhou
Securities Branch in Middle
Jiangjin Road, Jingzhou
No. 14, Floor 1-2, Building 2,
Xiangxie Lidu, Middle Jiangjin
Road, Shashi District, Jingzhou
City
434000 Yu Yanhua 0716-8249551
71
Securities Branch in
Bijiashan Road, Shishou
No. 88, Bijiashan Road, Xiulin
Agency, Shishou City
434400 Zuo Feng 0716-7282593
72 Shiyan
Securities Branch in
Chaoyang Middle Road,
Shiyan
No. 29, Chaoyang Middle Road,
Maojian District, Shiyan City
442000 Xu Jian 0719-8688188
404
HUATAI SECURITIES
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
73
Hubei 29
Shennongjia
Forestry District
Securities Branch in
Shennong Avenue,
Shennongjia
No. 225, Shennong Avenue,
Songbai Town, Shennongjia
Forestry District
442400 Liu Chao 0719-3336276
74
Wuhan
Securities Branch in Minzu
Avenue, Wuhan
No. 1 Minzu Avenue, Hongshan
District, Wuhan City
430074 Xu Hui 027-87575660
75
Securities Branch in
Zhujiang Road, CBD, Wuhan
Room 4, 26/F, Building 5,
Fanhai International SOHO City,
Wangjiadun CBD, Jianghan
District, Wuhan City
430032 Wang Lin 027-83632286
76
Securities Branch in Youyi
Avenue, Wuhan
Rooms 03 and 04, 1/F, Unit 3,
Building 1, Vanke Jinyu Huafu,
No. 29 Fangji Road, Yangyuan
Street, Wuchang District,
Wuhan City
430080 Liu Hongyan 027-86880966
77
Securities Branch in Shouyi
Road, Wuhan
No. 115, Shouyi Road, Wuchang
District, Wuhan City
430060 Li Pan 027-88133377
78
Securities Branch in Wuluo
Road, Wuhan
Room 1F-21 on 1/F and Room
5-13 on 15/F, Building 3, Disiman
International Center, No. 421,
Wuluo Road, Wuchang District,
Wuhan City
430070 Wang Kai 027-87816068
79
Securities Branch in Xinhua
Road, Wuhan
No. 296, Xinhua Street,
Jianghan District, Wuhan City
430015 Zhang Feng 027-85558889
80 Xiangyang
Securities Branch in
Changhong North Road,
Xiangyang
No. 19, Changhong North Road,
High-tech Zone, Xiangyang
City
441000 Zhang Suicui 0710-3278298
81
Huanggang
Securities Branch
in Dongmen Road,
Huanggang
Shop 101, 102, 1/F and No.
201, 2/F, Building 8, No. 91-36
Dongmen Road, Huangzhou
District, Huanggang City, Hubei
Province
438000 Ning Yi 0713-8613915
82
Securities Branch in Minzhu
Road, Wuxue
Shops 101-104 and 201-203,
Building 3, Guoding Mansion,
No. 138-17 Minzhu Road, Wuxue
City, Hubei Province
435400 Li Zhongrun 0713-6758589
83
Securities Branch in
Ronghui Road, Macheng
No. 33, Ronghui Road, Macheng
City, Hubei Province
438300 Zou Rui 0713-2772385
84
Yichang
Securities Branch in Zilong
Road, Dangyang
No. 59, Zilong Road, Dangyang
City, Hubei Province
444100 Zhang Xingxin 0717-3252238
85
Securities Branch in Xiling
First Road, Yichang
No. 10, Xiling First Road, Yichang
City
443000 You Jianghua 0717-6229898
86
Securities Branch in
Changjiang Avenue, Yidu
No. 167, Changjiang Avenue,
Lucheng, Yidu City
443300 Hu Dewen 0717-4836899
87
Securities Branch in Park
Road, Zhijiang
The junction of Tuanjie Road
and Park Road, Majiadian,
Zhijiang City
443200
Wang
Zhenpeng
0718-4200539
88
Hunan 3
Changsha
Securities Branch in Furong
Middle Road, Changsha
Unit 30028-30032, Fuxing
Commercial Plaza, No. 303,
Section 1, Furong Middle Road,
Kaifu District, Changsha City,
Hunan Province
410007 Tang Jingyu 0731-85561098
89
Yueyang
Securities Branch in
Tianyue Avenue, Pingjiang,
Yueyang
Beside to the Local Tax Bureau,
Tianyue Avenue, Pingjiang
County, Yueyang City
414500 Chen Muyuan 0730-6297006
90
Securities Branch in
Wulipai, Yueyang
3/F, Jiamei Building, Wulipai,
Yueyang City
414000 Chen Siyuan 0730-8240599
91
Jiangxi 3
Nanchang
Securities Branch in Supu
Road, Nanchang
No. 111, Supu Road, Donghu
District, Nanchang City, Jiangxi
Province
330006 Han Tao 0791-86270340
92
Securities Branch in Fenghe
Middle Avenue, Nanchang
North side of Room 104 and
Room 204, No. 2 Commerce
Building, Xinghehui Business
Center, No. 1333 Fenghe Middle
Avenue, Honggutan New
District, Nanchang City, Jiangxi
Province
330100 Wu Di 0791-83751699
93 Ganzhou
Securities Branch in M&A
Fund Park, Ganzhou
Shops 1-1, 1-10, 2-1 and
2-10, Building 1, Yangming
International Center,
Zhangjiang New Zone,
Zhanggong District, Ganzhou
City, Jiangxi Province
341000 Liu Jingwei 0797-5886858
405
Financial Report and
Documents for Inspection
Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
94
Jiangsu 95
Changzhou
Securities Branch in
Dongheng Street,
Changzhou
No. 2, Dongheng Street,
Changzhou City
213003 Yang Lu 18106123792
95
Securities Branch in Heping
North Road, Changzhou
No. 9, Heping North Road 213000 Liang Qiuming 0519-86618298
96
Securities Branch in Taihu
East Road, Changzhou
Nos. 1-10, 11, 12, 26, 27 and 28,
Fuchen Park, Taihu East Road,
Xinbei District, Changzhou City
213000 Yao Haitang 0519-86921660
97
Securities Branch in
Middle Yanzheng Avenue,
Changzhou
No. 16, Middle Yanzheng
Avenue, Wujin District,
Changzhou City
213159 Zou Wenjuan 0519-81000818
98
Securities Branch in
Nanhuan First Road, Jintan
Nos. 109, 110, 111 and 112, Building
1, Binhe Xingcheng, Jintan
District, Changzhou City
213200 Gu Zhun 0519-82696969
99
Securities Branch in South
Street, Liyang
No. 91, South Street, Liyang City 213300 Shi Yuefeng 18961106969
100
Huaian
Securities Branch in East
Huahai Road, Huaian
Shops 1004-1006, and Rooms
801-814, Building 1, Huifeng
Central Plaza, Huaian City
223301 Wei Xiang 0517-83907001
101
Securities Branch in
Chengde North Road,
Huaiyin, Huaian
Rooms 2, 3, 4, Building 2,
Chengde Mansion, Huaiyin
District, Huaian City
223300 Yu Le 0517-84908988
102
Securities Branch in Hongri
Avenue, Lianshui, Huaian
Room 104, Building Z02, Xin Lian
Yi Pin, Zhong Lian One City,
Lianshui County, Huaian
223400 Hu Xi 0517-82660908
103
Securities Branch in
Xiangyu Avenue, Huai’an
District, Huaian
No. 1007 Xiangyu Avenue,
Huaian District, Huaian City
223200 Shen Zhongqin 0517-85198077
104
Securities Branch in Huaihe
East Road, Xuyi, Huaian
No. 45, Huaihe East Road,
Xucheng Town, Xuyi County,
Huaian City, Jiangsu Province
211700 Kang Le 0517-88219875
105
Nanjing
Securities Branch in
Zhenzhu South Road, Lishui
Room 6, Building 109,
Guangcheng Oriental City,
No. 99 Zhenzhu South Road,
Yongyang Town, Lishui District,
Nanjing City, Jiangsu Province
211200 Li Guangxiang 025-56235323
106
Securities Branch in
Qingliangmen Street,
Nanjing
Room 1901, No. 39
Qingliangmen, Gulou District,
Nanjing City
210036 Li Guoping 025-86586116
107
Securities Branch in
Changjiang Road, Nanjing
1/F and 2/F, No. 99 Changjiang
Road, Nanjing City
210005 Tian Yu 025-84798478
108
Securities Branch in Baota
Road, Gaochun, Nanjing
No. 158-8, Baota Road, Chunxi
Town, Gaochun District, Nanjing
City, Jiangsu Province
211300 Xing Jiabin 025-56816718
109
Securities Branch in Wenlan
Road, Nanjing
No. 6, Wenlan Road, Xianlin
University Town, Qixia District,
Nanjing
210024 Li Boyang 025-58010075
110
Securities Branch in Lushan
Road, Nanjing
No. 168, Lushan Road, Jianye
District, Nanjing City
210029 Jiang Xianming 025-83539789
111
Securities Branch in Minzhi
Road, Nanjing
12/F, Block N, Nanjing Zendai
Hima Centre, No. 2 Minzhi Road,
Yuhuatai District, Nanjing
210002 Dai Yang 025-86895618
112
Securities Branch in
Tianyuan East Road,
Jiangning, Nanjing
Rooms 801-805, Building
8, Fortune Plaza II, No. 228
Tianyuan East Road, Chunhua
Street, Jiangning, Nanjing City
211100 Li Ying 025-87189130
113
Securities Branch in
Daguang Road, Nanjing
Room 202A, Guanghua
Building, No. 39 Daguang Road,
Qinhuai District, Nanjing City
210016 Zhang Anzhong 025-84620977
114
Securities Branch in
Xiongzhou West Road,
Liuhe, Nanjing
9/F, Building 1, No. 12 Xiongzhou
West Road, Xiongzhou Street,
Liuhe District, Nanjing City
211500 Xie Xiangshun 025-57115051
115
Securities Branch in
Ningshuang Road, Nanjing
12/F, Building A, Yunmi City, No.
19 Ningshuang Road, Yuhuatai
District, Nanjing City, Jiangsu
Province
210007 Xu Minfeng 025-84480958
116
Securities Branch in Yushi
Street, Nanjing
No. 96, Yushi Street, Nanjing
City, Jiangsu Province
210008 Yang Haikun 025-84701234
117
Securities Branch in
Zhimaying, Nanjing
No. 26, Zhimaying, Nanjing City 210004 Chu Dongbing 025-52210618
406
HUATAI SECURITIES
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
118
Jiangsu 95
Nanjing
Securities Branch in
Zhonghua Road, Nanjing
No. 255, Zhonghua Road,
Nanjing City, Jiangsu Province
210001 Wang Huan 025-52230208
119
Securities Branch in Huatai
Securities Building, East
Zhongshan Road, Nanjing
25/F, No. 90 East Zhongshan
Road, Qinhuai District, Nanjing
210009 Geng Kun 025-84718112
120
Securities Branch in
Zhenghe Middle Road,
Nanjing
Room 902, 9/F, Building
D, Nanjing Yangtze River
International Shipping Center,
No. 118, Zhenghe Middle Road;
No. 3-15 – 2, Yongning Street,
Gulou District, Nanjing
210003 Zhang Xiaodi 025-83539281
121
The Third Securities Branch
in Zhongyang Road,
Nanjing
Block 6, No. 399, Zhongyang
Road, Nanjing City, Jiangsu
Province
210037 Xing Qin 025-83581188
122
Securities Branch in Pusi
Road, Nanjing
No. 8-2, Pusi Road, High-tech
Industrial Development Zone,
Nanjing City, Jiangsu Province
210032 Xu Kangze 025-86334012
123
Nan Tong
Securities Branch in
Changjiang Road, Haimen
No. 231, Changjiang Road,
Haimen Town, Haimen City,
Jiangsu Province
226100 Zhu Bing 0513-82227766
124
Securities Branch in Middle
Changjiang Road, Hai’an,
Nantong
No. 93, Middle Changjiang
Road, Hai’an Town, Hai’an
County, Nantong City, Jiangsu
Province
226600 Zhai Jiping 0513-88856678
125
Securities Branch in
Gongnong Road, Nantong
Rooms 2404-2405, South
Building, Harmony City, No. 57
Gongnong Road, Nantong City
226000 Sha Fei 0513-85126758
126
Securities Branch in Middle
Renmin Road, Nantong
Mezzanine floor, East Jinxin
Building, No. 79, Middle Renmin
Road, Chongchuan District,
Nantong City
226001 Fan Ying 0513-85123188
127
Securities Branch in
Jianghai Road, Rudong,
Nantong
Southern section of the 4/F,
Room 101, Zhongyang Plaza,
No. 2 East Jianghai Road,
Chengzhong Street, Rudong
County
226400 Chen Xiaojun 0513-84883333
128
Securities Branch in
Shanghai East Road,
Nantong
Room 101, Block 2, Jinhaiyuan,
Development Zone, Nantong
City
226009 Zhu Bing 0513-85895597
129
Securities Branch in New
Century Avenue, Tongzhou,
Nantong
01B-2 Office, No. 170, New
Century Avenue, High-tech
Zone, Nantong
226300 Ji Xi 0513-81692959
130
Securities Branch in
Yaogang Road, Nantong
No. 6, Yaogang Road, Nantong
City, Jiangsu Province
226006 Xu Ke 0513-85580999
131
Securities Branch in Middle
Renmin Road, Qidong
No. 505, Middle Renmin Road,
Huilong Town, Qidong City,
Jiangsu Province
226200 Yao Liang 0513-83652208
132
Securities Branch in Fushou
Road, Rugao
Rooms 2-1 & 2-2, Complex
Building, Chengjian Jiayuan
Phase III, Rucheng Town, Rugao
City, Jiangsu Province
226500
Wang
Yongsheng
0513-87335888
133
Suzhou
Securities Branch in
Jinshajiang Road,
Changshu
No. 18, Jinshajiang Road,
Changshu City, Jiangsu
Province
215500 Pan Yi 0512-52895998
134
Securities Branch in
Heilongjiang North Road,
Kunshan
3/F, Building 3, No. 8
Heilongjiang North Road,
Kunshan Development Zone,
Jiangsu Province
215300 Liu Xinglin 0512-55219166
135
Securities Branch in
Ganjiang West Road,
Suzhou
No. 1359, Ganjiang West Road,
Suzhou City, Jiangsu Province
215004 Lu Renyan 0512-68270515
136
Securities Branch in Heshan
Road, Suzhou
2/F, Building 2, Jinri Jiayuan (No.
56, Heshan Road), Hightech
Zone, Suzhou City
215000 Liu Xiao 0512-68785488
137
Securities Branch in Renmin
Road, Suzhou
No. 1925, Renmin Road, Suzhou
City, Jiangsu Province
215001 Zhang Zhen 0512-67579766
138
Securities Branch in East
Suzhou Avenue, Suzhou
29A, Modern Media Plaza,
No. 265 East Suzhou Avenue,
Suzhou Industrial Park
215028 Guo Hengxi 0512-67248873
407
Financial Report and
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Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
139
Jiangsu 95
Suzhou
Securities Branch in Xinshi
Road, Suzhou
No. 102, Xinshi Road, Canglang
District, Suzhou City, Jiangsu
Province
215007 Yu Lin 0512-65729996
140
Securities Branch in Taiping
South Road, Taicang
No. 36-1, Taiping South Road,
Chengxiang Town, Taicang
City, Jiangsu Province
215400 Liu Lihong 0512-53589559
141
Securities Branch in
Guangzhou Road, Shengze
Town, Wujiang
Room 107, Huiying Mansion,
Financial Business Center,
North Side of Chenjiaqiao
Village Road, Xincheng District,
Shengze Town, Wujiang District,
Suzhou City
215228 Fan Xiaofeng 0512-63910061
142
Securities Branch in Middle
Changjiang Road, Jingang
Town, Zhangjiagang
No. 251, Middle Changjiang
Road, Jingang Town,
Zhangjiagang City, Jiangsu
Province
215633 Zhang Lin 0512-56767800
143
Securities Branch in
Yangshe East Road,
Zhangjiagang
No. 2, Yangshe Road East,
Zhangjiagang City, Jiangsu
Province
215600 Han Zongxu 0512-58220333
144
Securities Branch in
Wuzhong Avenue, Suzhou
2/F, Wuzhong Commercial
Center, Building 1, No.
198 Su Street, Yuexi Sub-
district, Wuzhong Economic
Development Zone, Suzhou
215104 Sun Qiang 0512-66021886
145
Securities Branch in Gaoxin
Road, Wujiang District,
Suzhou
Nos. 946 and 948, Gaoxin Road,
Songling Town, Wujiang District,
Suzhou City
215200 Zhao Yang 0512-63956208
146
Taizhou
Securities Branch in East
Street, Jiangyan
No. 23, East Avenue, Luotang
Street, Jiangyan District,
Taizhou City, Jiangsu Province
225500 Miao Genping 0523-88209518
147
Securities Branch in Middle
Renmin Road, Jingjiang
No. 150-3, Middle Renmin Road,
Jingjiang City, Jiangsu Province
214500 Dong Jun 0523-89101088
148
Securities Branch in
Guoqing West Road,
Taixing
D106 and D206, Hotel Building 4,
Qingyun Garden, Taixing City,
Jiangsu Province
225400 Tao Jin 0523-87095597
149
Securities Branch in
Jingang South Road,
Gaogang, Taizhou
Room 02, Building 6, Dushi
Jiayuan Phase I, Jingang
South Road, Gaogang District,
Taizhou City, Jiangsu Province
225300 Zhang Zhan 0523-86985597
150
Securities Branch in Middle
Yingwu Road, Xinghua,
Taizhou
No. 198, Middle Yingwu Road,
Xinghua City, Jiangsu province
225700 Cai Li’ang 0523-83256333
151
Wuxi
Securities Branch in Futai
Road, Jiangyin
5/F, New Baiye Square, No. 8
Futai Road, Jiangyin City
214421 Yu Bo 0510-86837528
152
Securities Branch in
Huandong Road, Huashi
Town, Jiangyin
No. 680, Huandong Road,
Huashi Town, Jiangyin City
214421
Chen
Dongdong
0510-81662778
153
Securities Branch in West
Avenue, Zhouzhuang Town,
Jiangyin
No. 318, West Avenue,
Zhouzhuang Town, Jiangyin
City
214423 Yan Ming 0510-81660193
154
Securities Branch in
Hongqiao North Road,
Changjing Town, Jiangyin
No. 10, Hongqiao North Road,
Changjing Town, Jiangyin City
214411 Zhou Junning 0510-81662758
155
Securities Branch in Yingxiu
Road, Qingyang Town,
Jiangyin
No. 111, Yingxiu Road, Qingyang
Town, Jiangyin City
214401 Liu Chaohui 0510-86817241
156
Securities Branch in Shenpu
Road, Lingang, Jiangyin
No. 108, Shenpu Road, Lingang
Sub-district, Jiangyin City
214443 Huang Yaqiu 0510-81666278
157
Securities Branch in
Liangqing Road, Wuxi
1/F, Jiangong Building, No. 56
Liangqing Road, Wuxi City,
Jiangsu Province
214000 Wan Lei 0510-82768155
158
Securities Branch in Jiefang
West Road, Wuxi
No. 327, Jiefang West Road,
Wuxi City
214000 Zhang Ye 0510-82722975
159
Securities Branch in
Financial First Street, Wuxi
Unit 01B, First Floor, No. 11,
Financial First Street, Taihu New
City, Binhu District, Wuxi City
214123 Tang Kai 0510-85065672
160
Securities Branch in Yongle
Road, Wuxi
1/F, Shuili Building, No. 12
Nanhebang, Yongle Road,
Nanchang District, Wuxi City,
Jiangsu Province
214021 You Lingyan 0510-85045101
408
HUATAI SECURITIES
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
161
Jiangsu 95
Wuxi
Securities Branch in Jiefang
East Road, Yixing
No. 177, Jiefang East Road,
Yicheng Sub-district, Yixing
City, Jiangsu Province
214299 Liu Hui 0510-80793526
162 Lianyungang
Securities Branch in
Tongguan South Road,
Lianyungang
No. 69, Tongguan South Road,
Haizhou District, Lianyungang
City, Jiangsu Province
222001 Liu Lei 0518-85519068
163
Suqian
Securities Branch in Beijing
North Road, Shuyang
No. 17 (on the first floor of CCB),
Beijing North Road, Shucheng
Town, Shuyang County
223600 Feng Lingtong 0527-87880259
164
Securities Branch in Hongze
Lake Road, Suqian
No. 581, Hongze Lake Road,
Suqian City
223800 Zhang Yang 0527-84390068
165
Securities Branch in Tiyu
North Road, Sihong, Suqian
Room 103, Building 23, Fuyuan
Tianjun, Tiyu North Road,
Qingyang Town, Sihong
County, Jiangsu Province
(Sihong County Economic
Development Zone, Jiangsu
Province)
223900 Zheng Hai 0527-89889601
166
Securities Branch in Middle
Beijing Road, Siyang,
Suqian
No. 1 Middle Beijing Road,
Zhongxing Town, Siyang
County
223700 Wu Yi 0527-85181112
167
Xuzhou
Securities Branch in
Science Park, Xuzhou
Room 103, 1/F & Rooms 306,
307 and 308, 3/F, Technology
Building, Technology Avenue,
Quanshan District, Xuzhou City
221006 Zhou Xuehong 0516-85850911
168
Securities Branch in
Tangmu Road, Pei County,
Xuzhou
No. 2, Tangmu Road, Pei
County, Xuzhou City, Jiangsu
Province
221600 Luo Wei 0516-81202066
169
Securities Branch in Huaihai
East Road, Xuzhou
No. 165, 1/F and Rooms 2102-
2105, Unit A, Suning Plaza, No.
29 Huaihai East Road, Gulou
District, Xuzhou City
221000 Jiao Shuai 0516-83718027
170
Securities Branch in Renmin
East Road, Suining, Xuzhou
Rooms 104, 205, 206, 214 and
215, Unit 1, Building 1, Hongrui
Jiadi, Renmin East Road,
Suicheng Town, Suining County
221200 Zhang Lei 0516-81307121
171
Securities Branch in Heping
Road, Xuzhou
101-2, Wenyuan Building, No. 59
Heping Road, Yunlong District,
Xuzhou City
221116 Wang Guihang 0516-83538896
172
Securities Branch in
Jianguo West Road, Xuzhou
Room 109, 1/F & Room 205, 2/
F, Block 1A, Fortune Plaza, No.
75 Jianguo West Road, Xuzhou
City
221000 Zhang Hongxing 0516-85803998
173
Securities Branch in Daqiao
West Road, Xinyi
No. 8, Daqiao West Road, Xinyi,
Xuzhou City, Jiangsu Province
221400 Wang Lei 0516-88989808
174
Securities Branch in
Zhongyang Avenue, Feng
County, Xuzhou
(Shops 2-10, Mingshi Garden),
No. 5101 Zhongyang Avenue,
Feng County, Xuzhou City,
Jiangsu Province
221700 Chen Yanzhi 0516-66650130
175
Yancheng
Securities Branch in Renmin
South Road, Dafeng,
Yancheng
Rooms 102, 103 and 104, Building
B, Yangguang Mall, Dafeng
District, Yancheng
224100 Yang Fei 0515-83928806
176
Securities Branch in Middle
Hailing Road, Dongtai
Rooms 8017& 8018, Building 3,
Shangye New Village, No. 78
Middle Hailing Road, Dongtai
224200 Xi Jing 0515-85105761
177
Securities Branch in
Chenghe Road, Funing,
Yancheng
No. 63(C), Chenghe Road,
Funing County
224400 Fu Yacheng 0515-87875111
178
Securities Branch in South
Hongxing Alley, Binhai,
Yancheng
Room 15-103 and Room 15-
104, No. 15 Commercial and
Residential Building, No. 16
Commercial and Office
Building, Lvdu Jiayuan, No. 29
South Hongxing Alley, Dongkan
Street, Binhai County
224500 Zhou Dehong 0515-87021988
179
Yangzhou
Securities Branch in
Pinghuai Road, Gaoyou,
Yangzhou
No. 37, Pinghuai Road, Gaoyou 225600 Guan Yizhi 0514-84666552
180
Securities Branch in
Yeting East Road, Baoying,
Yangzhou
No. 10, Yeting East Road,
Baoying County
225800 Zuo Enlin 0514-88230488
409
Financial Report and
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Operating Analysis
and Strategies
ANNUAL REPORT 2021
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
181
Jiangsu 95
Yangzhou
Securities Branch in South
Longchuan Road, Jiangdu,
Yangzhou
Nos. 220, 222 and 226, Business
Buildings, Longchuan Road,
Zhongyuan Europe City,
Xiannv Town, Jiangdu District,
Yangzhou City
225200 Wang Hongmei 0514-86534998
182
Securities Branch in
Wenchang West Road,
Yangzhou
(Park International Building)
No. 56, Wenchang West
Road, Yangzhou City, Jiangsu
Province
225000 Cheng Li 0514-85863888
183
Securities Branch in
Wenchang Middle Road,
Yangzhou
No. 406, Wenchang Middle
Road, Yangzhou City, Jiangsu
Province
225001 Zhang Jingbao 0514-87055888
184
Securities Branch in
Zhenzhou East Road,
Yizheng, Yangzhou
No. 101, Zhenzhou East Road,
Zhenzhou Town, Yizheng City,
Jiangsu Province
211400 Lu Zaiyan 0514-83962098
185
Zhenjiang
Securities Branch in Cuizhu
South Road, Yangzhong
No. 235, Cuizhu South
Road, Sanmao Sub-district,
Yangzhong City
212200 Ling Qi 0511-88399933
186
Securities Branch in
Guyang Avenue, Dantu,
Zhenjiang
Rooms 101-102, Building 56,
Shengdiyage, Dantu District,
Zhenjiang City
212000 Xu Rui 0511-85115898
187
Securities Branch in
Fenghuang Road, Danyang,
Zhenjiang
Nos. 16-1 to 16-3, Fenghuang
Road, Development Zone,
Danyang
212300 Hou Yeping 0511-86699772
188
Securities Branch in
Huayang North Road,
Jurong, Zhenjiang
No. 8-2, Huayang North Road,
Huayang Town, Jurong City
212400 Xu Kai 0511-85979998
189
Liaoning 7
Dalian
Securities Branch in Shengli
East Road, Dalian
Nos. 2-1, 2-2 and 2-3, Unit 1,
No. 227 Market Street; Nos. 223
and 231, Market Street, Xigang
District, Dalian City, Liaoning
Province
116013 Tang Wei 0411-82815866
190
Securities Branch in Lianhe
Road, Dalian
No. 4, Meiduyuan, Shahekou
District, Dalian City, Liaoning
Province
116021 Jia Jing 0411-84342688
191 Panjin
Securities Branch in Shiyou
Street, Panjin
Jiguanwei, Shiyou Street,
Xinglongtai District, Panjin City
124010 Wang Fan 0427-3257500
192
Shenyang
Securities Branch in Daxi
Road, Shenyang
No. 187, Daxi Road, Shenhe
District, Shenyang City, Liaoning
Province
110014 Wang Hui 024-31976665
193
Securities Branch in
Guangrong Street,
Shenyang
Floors 2-5, No. 23, Guangrong
Street, Heping District,
Shenyang City, Liaoning
Province
110003 Liu Xiaoqing 024-31883577
194
Securities Branch in
Qingnian Street, Shenyang
No. 320 (Building group 201),
Qingnian Street, Heping District,
Shenyang City, Liaoning
Province
110004 Zhang Sai 024-31883388
195 Yingkou
Securities Branch in Bohai
Street, Yingkou
No. 16-A-1, Bohai Street East,
Zhanqian District
115000 Wang Ran 0417-3350961
196
Shandong 7
Jinan
Securities Branch in Jingqi
Road, Jinan
West Hall, 1F, Runheng Building,
No. 83, Jingqi Road, Shizhong
District, Jinan City
250000 Zhang Qinlei 18660186343
197
Securities Branch in Jingshi
Road, Jinan
Rooms C106 & C108, Zone C,
1F and Rooms B200, B202 &
206, Zone B, 2F, Huate Plaza,
No. 17703, Jingshi Road, Lixia
District, Jinan City
250061 Wang Qiang 0531-82318318
198
Securities Branch in Jiefang
Road, Jinan
1/F, East Dongyuan Building, No.
30 Jiefang Road, Lixia District,
Jinan City
250013 Cheng Gaofeng 0531-85829568
199
Yantai
Securities Branch in
Changshan Road, Laiyang
No. 32, Changshan Road,
Laiyang City, Shandong
Province
265200 Zhang Baigang 0535-7999111
200
Securities Branch in Jinhua
Street, Yantai
No. 85, Jinhua Street, Zhifu
District, Yantai City, Shandong
Province
264000 Wang Xiaodong 0535-2150055
201 Qingdao
Securities Branch in West
Hong Kong Road, Qingdao
No. 79, West Hong Kong Road,
Shinan District, Qingdao,
Shandong Province
266071 Cui Junfeng 0532-85713938
410
HUATAI SECURITIES
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
202 Shandong 7 Linyi
Securities Branch in
Jinqueshan Road, Linyi
Room 101, Block B, Weite
Tianyuan Square, Jinqueshan
Road, Lanshan District, Linyi
City, Shandong Province
276000 Jing Jianfei 0539-7030698
203
Shanghai 16 Shanghai
Securities Branch in
Jiangning Road, Putuo
District, Shanghai
Room 901, No. 1158, Jiangning
Road, Putuo District, Shanghai
200060 Huang Weiqing 021-33532200
204
Securities Branch in
Gonghe New Road,
Shanghai
Zones A, B, C, 15/F, No. 5199,
Gonghe New Road, Baoshan
District, Shanghai
200435 Xie Feng 021-56761987
205
Securities Branch in Guobin
Road, Yangpu District,
Shanghai
Rooms 1801-1804, No. 36,
Guobin Road, Yangpu District,
Shanghai
200433 Qi Lili 021-33621855
206
Securities Branch in
Huanghe Road, Shanghai
4/F, No. 333, Huanghe Road,
Huangpu District, Shanghai
200003 He Wei 021-63181398
207
Securities Branch in Raffles
Square, Huangpu District,
Shanghai
Room 5003-05 (actual room
numbers are 4403A, 4403B,
4404), No. 268, Central Tibet
Road, Huangpu District,
Shanghai
200042 Ruan Jing 021-63550001
208
Securities Branch in Weihai
Road, Jing’an District,
Shanghai
Room 1305, No. 511, Weihai
Road, Jing’an District, Shanghai
200041 Xu Yixuan 021-62678287
209
Securities Branch in
Mudanjiang Road,
Shanghai
5/F, No. 1508, Mudanjiang Road,
Baoshan District, Shanghai
201999 Duan Baodong 021-56106616
210
Securities Branch in
Wangyuan South Road,
Fengxian District, Shanghai
Nos. 46, 47, 48 and 49, Miaojing
New Village, Fengxian District,
Shanghai
201400 Yang Junjie 021-67136006
211
Securities Branch in Fushan
Road, Pudong New District,
Shanghai
Rooms 03B-05A, 26/F (actual
floor number: 23/F), No.
388, Fushan Road, China
(Shanghai) Pilot Free Trade
Zone
200120 Wang Yuehao 021-20773068
212
Securities Branch in
Tianyaoqiao Road, Xuhui
District, Shanghai
Rooms 1103, 1105, 1107 and 1109,
No. 329, Tianyaoqiao Road,
Xuhui District, Shanghai
200030 Zhang Renrong 021-54254885
213
Securities Branch in Xianxia
Road, Changning District,
Shanghai
No. 1398-1, Xianxia Road,
Changning District, Shanghai
(Temporary)
200336 Li Zhongyi 021-52983009
214
Securities Branch in
Wuding Road, Shanghai
6/F, 7/F, No. 1088, Wuding Road,
Jing’an District, Shanghai
200040 Xu Shan 021-62566063
215
Securities Branch in South
Huangpi Road, Huangpu
District, Shanghai
Units 01B, 02, 03, 05, 06, 3/F,
Building A, Block 4, No. 1, Lane
838, South Huangpi Road,
Huangpu District, Shanghai
200011 Shi Cao 021-63356099
216
Securities Branch in
Miaojing Road, Pudong
New District, Shanghai
1-3/F, No. 642, Miaojing Road,
Pudong New District, Shanghai
201299 Miao Cong 021-33825017
217
Securities Branch in
Century Avenue, Pudong
New District, Shanghai
Unit 05, 1/F, No. 1229 Century
Avenue, China (Shanghai) Pilot
Free Trade Zone
200120 Huang Wei 021-58392077
218
Securities Branch in
Dongfang Road, Pudong
New District, Shanghai
Rooms 03 and 04, 15/F
(actually Rooms 03 and 04,
12/F), No. 18 Dongfang Road,
China (Shanghai) Pilot Free
Trade Zone
201120 Luo Yihong 021-28972315
219
Sichuan 7 Chengdu
Securities Branch in Jinhui
West 2nd Street, Chengdu
Room 2103, 21/F, Unit 1, Building
10, Tianfu Xingu, No. 399, West
Section, Fucheng Avenue,
Hitech Zone, Chengdu, China
(Sichuan) Pilot Free Trade Zone
610000 Yang Rui 028-87448096
220
The Second Securities
Branch in South First Ring
Road, Chengdu
5/F, BOC Building, No. 45 South
Third
610041 Gao Xiongwei 028-85512252
221
Securities Branch in Renmin
South Road, Chengdu
Rooms 703, 7/F, Unit 1, Building
1, Xinxiwang Building, No. 45,
Renmin Road South Section IV,
Wuhou District, Chengdu City
610031 Li Huiying 028-85590880
411
Financial Report and
Documents for Inspection
Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
222
Sichuan 7
Chengdu
Securities Branch in Shujin
Road, Chengdu
Rooms 301, 302, 410, 411 and 412,
Block C, Jinsha Wanrui Center,
No. 1 Shujin Road, Qingyang
District, Chengdu City
610091 Li Xiao 028-61505176
223
Securities Branch in
Zhengdong Central
Street, Tianfu New District,
Chengdu
Nos. 240, 242, 244 and 246,
Zhengdong Central Street,
Huayang Sub-district, Tianfu
New District, Chengdu City,
Sichuan Province
610213 Wang Hongtao 028-85640443
224
Securities Branch in Shixili,
Xipu, Chengdu
Annexes 13 and 14 of No. 68
Yuanlin Road, Xipu Town, Pidu
District, Chengdu City
611731 Liu Feng 028-87843269
225 Deyang
Securities Branch in
Diamond Plaza,
Changjiang West Road,
Deyang
A2, A3, A4, A5 and A6, 5/F,
Building 1, Diamond Plaza,
No. 29, Section 2, Changjiang
West Road, Deyang, Sichuan
Province
618100 Shang Guang 0838-7201167
226 Guizhou 1 Guiyang
Securities Branch in
Zhonghua North Road,
Guiyang
No. 3, Postal Communications
Production Building, No. 2,
Zhonghua Road North, Yunyan
District, Guiyang City, Guuizhou
Province
550001 Xiong Lihan 0851-84109471
227 Chongqing 1 Chongqing
Securities Branch in
Jiangbeizui, Chongqing
Rooms 1502 and 1503, 15/F, Unit
2, No. 9 Huixianyan Square,
Jiangbei District, Chongqing
400084 He Xiaoping 023-68901837
228
Tianjin 4 Tianjin
Securities Branch in Baidi
Road, Tianjin
No. 240, Baidi Road, Nankai
District
300192 Zhang Haiyan 022-87893469
229
Securities Branch in Erwei
Road, Dongli Development
Zone, Tianjin
Rooms 209-211, 2/F, Caizhi
Building, No. 9, Erwei Road,
Dongli Development Zone,
Tianjin City
300399 Liu Yongjun 022-84373801
230
Securities Branch in Qinjian
Road, Tianjin
Bottom Floor (Business Area),
Yunhan Building, No. 185,
Qinjian Road, Hongqiao District
300130 Xu Jianguo 022-26532286
231
Securities Branch in
Huachang Road, Tianjin
Units 07, 08, 09 and 10, 2/F,
Building 1, No. 40, Huachang
Road, Hedong District, Tianjin
City
300151 Zhang Feng 022-58811908
232 Gansu 1 Lanzhou
Securities Branch in
Donggang West Road,
Lanzhou
4/F, Changye Golden Villa,
No. 621 Donggang West Road,
Chengguan District, Lanzhou
City, Gansu Province
730000 Fu Jie 0931-8106511
233
Shaanxi 2 Xi’an
Securities Branch in Wenyi
North Road, Xi’an
1/F and 6/F, Western Culture
Plaza, No. 11, Wenyi North Road,
Beilin District, Xi’an City, Shaanxi
Province
710054 Jia Gang 029-87889991
234
Securities Branch in
Zhangba East Road, Xi’an
1/F, Jintai Holiday Flower City,
Zhangba East Road, Yanta
District, Xi’an City
710065 Hu Kai 029-85587020
235 Qinghai 1 Xining
Securities Branch in Xinning
Road, Xining
Room 59-147, 3/F, Building 5,
Hexin Center, No. 23, Xinning
Road, Chengxi District, Xining
City, Qinghai Province
810000 Liang Xu 0971-6368338
236 Xinjiang 1 Yining
Securities Branch in Jiefang
West Road, Yining City
8/F, Jinrong Building, No. 243,
Jiefang West Road, Yining City
835000 Wang Hui 0999-8986569
237 Ningxia 1 Yinchuan
Securities Branch in
Yinjiaqu North Street,
Yinchuan
Room 101, Commercial Building
No. 1, Jinhai Mingyue Garden,
No. 65 Yinjiaqu North Street,
Jinfeng District, Yinchuan
City, Ningxia Hui Autonomous
Region
750004 Liu Ming 0951-6019666
238
Zhejiang 8 Hangzhou
Securities Branch in Jiefang
East Road, Hangzhou
Room 901, Dikai Yinzuo, No. 29,
Jiefang East Road, Jianggan
District, Hangzhou City,
Zhejiang Province
310004 Wang Qianwen 0571-28002220
239
Securities Branch in Qiushi
Road, Hangzhou
Rooms 501B and 805, North
Tower, Gongyuan Building, No.
8 Qiushi Road, Xihu District,
Hangzhou City, Zhejiang
Province
310007 Zhu Weizhou 0571-87756088
412
HUATAI SECURITIES
No Province City Name Address Zip code
Person in charge
of securities
branches
Contact number
of person in
charge
240
Zhejiang 8
Ningbo
Securities Branch in Liuting
Street, Ningbo
3/F, Office Building, No. 230,
Liuting Street, Haishu District,
Ningbo City, Zhejiang Province
315010 Ren Xin 0574-87023678
241 Shaoxing
Securities Branch in Fushan,
Shaoxing
No. 213 (101 & 102), No. 215 (101
& 102) and No. 217 (233, 234
& 236-241), Huancheng West
Road, Shaoxing City, Zhejiang
Province
312000
Zhang
Zhengxing
0575-85222916
242 Wenzhou
Securities Branch in
Yangguang Avenue,
Yongjia
No. 8-13, 1/F, Yangguang
Building, Xinqiao Village,
Jiangbei Sub-district, Yongjia
County, Zhejiang Province
325102 Liu Jiexing 0577-66992188
243 Zhoushan
Securities Branch in Jiefang
East Road, Zhoushan
Rooms 802 & 803, No. 166-
1, No. 118, Jiefang East Road,
Dinghai District, Zhoushan City,
Zhejiang Province
316100 Zhang Mingfeng 0580-3066008
244 Taizhou
Securities Branch in
Zhongxin Avenue, Taizhou
Northeast Section, Room 104,
Donggang Complex Office
Building, No. 183, Zhongxin
Avenue, Taizhou City, Zhejiang
Province
318000 Chen Huang 0576-89811389
245 Jiaxing
Securities Branch in
Fanggong Road, Jiaxing
No. 1115, No. 1119, Fanggong
Road, Nanhu District, Jiaxing
City, Zhejiang Province
314000 Jing Wei 0573-82862312
413
Financial Report and
Documents for Inspection
Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
III. INFORMATION DISCLOSURES INDEX
1. During the Reporting Period, the Company disclosed the following matters on China
Securities Journal, Shanghai Securities News, Securities Times and Securities Daily and on the
website of the Shanghai Stock Exchange (www.sse.com.cn):
No Date Announcement
1 2021-01-04
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Eleventh Meeting of the Fifth Session of the Board, Independent
Opinions of Independent Directors of Huatai Securities Co., Ltd. on Nomination of Candidates for Non-executive Directors of the
Company, Announcement by Huatai Securities Co., Ltd. on the Summary of the Restricted Share Incentive Scheme of A Shares (Draft),
Independent Opinions of Independent Directors of Huatai Securities Co., Ltd. on the Restricted Share Incentive Scheme of A Shares (Draft)
of Huatai Securities Co., Ltd. and Relevant Matters, Verification Opinions of the Board of Supervisors of Huatai Securities Co., Ltd. on the
Restricted Share Incentive Scheme of A Shares (Draft) of Huatai Securities Co., Ltd. and Relevant Matters, Administration Measures for
the Evaluation on the Implementation of the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd., Administration
Measures for the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd., Restricted Share Incentive Scheme of A
Shares (Draft) of Huatai Securities Co., Ltd., Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Sixth Meeting of the
Fifth Session of the Supervisory Committee
2 2021-01-06
Announcement by Huatai Securities Co., Ltd. on the Progress of Repurchase of A Shares of the Company through Centralized Price
Bidding
3 2021-01-07 H Share Announcement of HTSC (Monthly Return of Equity Issuer on Movements in Securities for the Month Ended December 31, 2020)
4 2021-01-08
Announcement by Huatai Securities Co., Ltd. on Public Solicitation of Voting Rights by Independent Directors, Notice of 2021 First
Extraordinary General Meeting of Huatai Securities Co., Ltd., Legal Opinions from King & Wood Mallesons (Nanjing) on the Restricted
Share Incentive Scheme of A Shares (Draft) of Huatai Securities Co., Ltd., Document of 2021 First Extraordinary General Meeting of Huatai
Securities Co., Ltd.
5 2021-01-09 H Share Announcement of HTSC (Next Day Disclosure Return)
6 2021-01-12 Announcement by Huatai Securities Co., Ltd. on Results of the Implementation of the Repurchase of A Shares and Changes in Shares
7 2021-01-21
Announcement by Huatai Securities Co., Ltd. on Receiving Reply from the CSRC on Conducting Market Making Business on Commodities
Futures
8 2021-01-27 Announcement by Huatai Securities Co., Ltd. on Issuance Results for 2021 Short-term Debentures (First Tranche)
9 2021-01-29 Announcement by Huatai Securities Co., Ltd. on Issuance Results for 2021 Short-term Debentures (Second Tranche)
10 2021-01-30
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Twelfth Meeting of the Fifth Session of the Board, Indicative
Announcement by Huatai Securities Co., Ltd. on Notes on Attending the 2021 First Extraordinary General Meeting during the Prevention of
the COVID-19 Pandemic, H Share Announcement of HTSC (Connected Transaction – Establishment of a Partnership)
11 2021-02-03
H Share Announcement of HTSC (Monthly Return of Equity Issuer on Movements in Securities for the Month Ended January 31, 2021),
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Seventh Meeting of the Fifth Session of the Supervisory
Committee, Explanations to the Publicity of and Verification Opinions of the Board of Supervisors of Huatai Securities Co., Ltd. on the List
of Incentive Participants under the Restricted Share Incentive Scheme of A Shares, List of Incentive Participants under the Restricted
Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd., Announcement on the Approval of the Restricted Share Incentive
Scheme of A Shares
12 2021-02-09
Self-inspection Report of Huatai Securities Co., Ltd. on Dealing the Stocks of the Company by Insiders under the Restricted Share
Incentive Scheme of A Shares, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the 2021 First Extraordinary General
Meeting, Legal Opinions from King & Wood Mallesons on the 2021 First Extraordinary General Meeting of Huatai Securities Co., Ltd.,
Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd., Administration Measures for the Restricted Share Incentive
Scheme of A Shares of Huatai Securities Co., Ltd., Administration Measures for the Evaluation on the Implementation of the Restricted
Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd., Rules of Procedures for General Meetings of Huatai Securities Co.,
Ltd. (Revised in 2021), Announcement by Huatai Securities Co., Ltd. on Approval of Qualification as Director, Announcement by Huatai
Securities Co., Ltd. on the Resolutions of the Thirteenth Meeting of the Fifth Session of the Board
13 2021-02-10
Announcement by Huatai Securities Co., Ltd. on Accumulative Increase of New Borrowings in Current Year Exceeding Net Assets at the
End of Previous Year by 20%
14 2021-03-04 H Share Announcement of HTSC (Monthly Return of Equity Issuer on Movements in Securities for the Month Ended February 28, 2021)
15 2021-03-12
Announcement by Huatai Securities Co., Ltd. on the Results of the Issuance of the 2021 Short-term Debentures (Third Tranche), H Share
Announcement of HTSC (Date of Board Meeting)
16 2021-03-18 Announcement by Huatai Securities Co., Ltd. on the Briefing on the Annual Results of 2020
414
HUATAI SECURITIES
No Date Announcement
17 2021-03-24
2020 Annual Report of Huatai Securities Co., Ltd., 2020 Annual Report Summary of Huatai Securities Co., Ltd., Annual Internal Control
Evaluation Report of Huatai Securities Co., Ltd. in 2020, Independent Opinion of Independent Directors of Huatai Securities Co., Ltd. on
Matters Concerning 2020 Annual Report of the Company, 2020 Annual Audit Report of Huatai Securities Co., Ltd., Special Explanation
of Huatai Securities Co., Ltd. on Occupation of Non-operating Funds and Transaction of Other Associated Funds for 2020, Report
on Performance of Duties of Independent Directors of Huatai Securities Co., Ltd. in 2020, Corporate Social Responsibility Report of
Huatai Securities Co., Ltd. for 2020, Annual Internal Control Audit Report of Huatai Securities Co., Ltd. in 2020, Report on Performance
of Duties of Audit Committee under the Board of Huatai Securities Co., Ltd. in 2020, Announcement by Huatai Securities Co., Ltd. in
Relation to the Grant of the Restricted A Shares to Incentive Participants under the Restricted Share Incentive Scheme of A Shares,
Legal Opinions from King & Wood Mallesons (Nanjing) on Adjustment to Relevant Matters on the Restricted Share Incentive Scheme
of A Shares of Huatai Securities Co., Ltd. and the Grant, List of Incentive Participants under the Restricted Share Incentive Scheme of
A Shares of Huatai Securities Co., Ltd., Verification Opinions of the Board of Supervisors of Huatai Securities Co., Ltd. on Adjustment to
Relevant Matters on the Restricted Share Incentive Scheme of A Shares and the Grant, Announcement by Huatai Securities Co., Ltd. on
Adjustment to Relevant Matters of the Restricted Share Incentive Scheme of A Shares, Independent Opinions of Independent Directors
of Huatai Securities Co., Ltd. on Adjustment to Relevant Matters of the Restricted Share Incentive Scheme of A Shares and the Grant,
Announcement by Huatai Securities Co., Ltd. in Relation to Provision for Impairment of Assets, Independent Opinions of Independent
Directors of Huatai Securities Co., Ltd. on Provision for Impairment of Assets, Announcement on the Re-appointment of the Accounting
Firm by Huatai Securities Co., Ltd., Announcement by Huatai Securities Co., Ltd. on Anticipation of Ordinary Transactions with Related
Parties in 2021, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Fourteenth Meeting of the Fifth Session of the
Board, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Eighth Meeting of the Fifth Session of the Supervisory
Committee, Announcement on Annual Profit Distribution Plan of Huatai Securities Co., Ltd. in 2020
18 2021-04-01
Summary Report by Huaan Securities and Huatai United Securities on the Continuous Listing of Overseas Listing of AssetMark under
HTSC
19 2021-04-06
Announcement by Huatai Securities Co., Ltd. on the Completion of Changes to the Nature of Shares and the Progress of the Granting of
the Restricted Share Incentive Scheme of A Shares
20 2021-04-08
H Share Announcement of HTSC (Monthly Return of Equity Issuer on Movements in Securities for the Month Ended March 31, 2021),
Announcement by Huatai Securities Co., Ltd. in Relation to Results of the Grant under the Restricted Share Incentive Scheme of A Shares
21 2021-04-13
Announcement by Huatai Securities Co., Ltd. on the Listing of Offshore Bonds on The Stock Exchange of Hong Kong Limited,
Announcement by Huatai Securities Co., Ltd. on Providing Guarantee for the Issuance of Dollar Bonds of Wholly-owned Offshore
Subsidiaries
22 2021-04-20 H Share Announcement of HTSC (Date of Board Meeting)
23 2021-04-22
Announcement by Huatai Securities Co., Ltd. on Providing Guarantee for the Issuance of Dollar Bonds of Wholly-owned Offshore
Subsidiaries, Announcement by Huatai Securities Co., Ltd. on the Listing of Offshore Bonds on The Stock Exchange of Hong Kong Limited
24 2021-04-30
First Quarterly Report of 2021 of Huatai Securities Co., Ltd., Text of First Quarterly Report of 2021 of Huatai Securities Co., Ltd.,
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Fifteenth Meeting of the Fifth Session of the Board
25 2021-05-07 H Share Announcement of HTSC (Monthly Return of Equity Issuer on Movements in Securities for the Month Ended April 30, 2021)
26 2021-05-21
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Sixteenth Meeting of the Fifth Session of the Board, Independent
Opinion of Independent Directors of Huatai Securities Co., Ltd. on Nomination of Candidates for Independent Non-executive Directors
of the Company, Statements of Nominators of Independent Directors of Huatai Securities Co., Ltd., Statements of Candidates for
Independent Directors of Huatai Securities Co., Ltd., Notice of 2020 Annual General Meeting of Huatai Securities Co., Ltd., Document of
2020 Annual General Meeting of Huatai Securities Co., Ltd.
27 2021-06-04 H Share Announcement of HTSC (Monthly Return of Equity Issuer on Movements in Securities for the Month Ended May 31, 2021)
28 2021-06-11
Indicative Announcement by Huatai Securities Co., Ltd. on Notes on Attending the 2020 Annual General Meeting during the Prevention of
the COVID-19 Pandemic
29 2021-06-23
Announcement by Huatai Securities Co., Ltd. on Resolutions of 2020 Annual General Meeting, Legal Opinions from King & Wood
Mallesons on the 2020 Annual General Meeting of Huatai Securities Co., Ltd., Announcement by Huatai Securities Co., Ltd. on Approval of
Qualification as Independent Non-executive Director
30 2021-06-29 Announcement on Issuance Results for 2021 Short-term Debentures of Huatai Securities Co., Ltd. (Fourth Tranche)
31 2021-06-30 Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Seventeenth Meeting of the Fifth Session of the Board
32 2021-07-03 H Share Announcement of HTSC (Monthly Return of Equity Issuer on Movements in Securities for the Month Ended June 30, 2021)
33 2021-07-07
Announcement by Huatai Securities Co., Ltd. on Jiangsu Guoxin Investment Group Limited Increase its Holding of Shares of the
Company
34 2021-07-09 Update Announcement by Huatai Securities Co., Ltd. on Jiangsu Guoxin Investment Group Limited Increase its Holding of Shares
35 2021-07-17 Announcement by Huatai Securities Co., Ltd. on Issuance Results for 2021 Short-term Debentures (Fifth Tranche)
36 2021-07-24 Announcement by Huatai Securities Co., Ltd. on Issuance Results for 2021 Short-term Debentures (Sixth Tranche)
37 2021-07-31
Announcement by Huatai Securities Co., Ltd. on Implementation of Equity Distribution for 2020, Special Legal Opinions from King & Wood
Mallesons (Nanjing) on Differentiated Distribution of Dividends of Huatai Securities Co., Ltd. in 2020
38 2021-08-06 H Share Announcement of HTSC (Monthly Return of Equity Issuer on Movements in Securities for the Month Ended July 31, 2021)
39 2021-08-18 H Share Announcement of HTSC (Date of Board Meeting)
40 2021-08-21 Announcement by Huatai Securities Co., Ltd. on Convening of 2021 Interim Results Briefing
41 2021-08-28
2021 Interim Report of Huatai Securities Co., Ltd., 2021 Interim Report Summary of Huatai Securities Co., Ltd., Announcement by Huatai
Securities Co., Ltd. on the Resolutions of the Eighteenth Meeting of the Fifth Session of the Board
42 2021-09-07 H Share Announcement of HTSC (Monthly Return of Equity Issuer on Movements in Securities for the Month Ended August 31, 2021)
43 2021-09-08
Announcement by Huatai Securities Co., Ltd. on Change in Registered Address of Jiangsu Equity Exchange Co., Ltd., a Holding Subsidiary
of the Company
415
Financial Report and
Documents for Inspection
Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
No Date Announcement
44 2021-09-11
Announcement by Huatai Securities Co., Ltd. on Obtaining Approval of the CSRC for the Registration of Public Issuance of Perpetual
Subordinated Corporate Bonds to Professional Investors
45 2021-09-17
Announcement by Huatai Securities Co., Ltd. on Change in Registered Address of Huatai Innovative Investment Co., Ltd., a Wholly-owned
Subsidiary of the Company
46 2021-09-18
Announcement by Huatai Securities Co., Ltd. on the Appointment of General Manager of Huatai Securities (Shanghai) Asset
Management Co., Ltd.
47 2021-09-25 H Share Announcement of HTSC (Supplemental Announcement of Annual Report for the Year ended December 31, 2020)
48 2021-10-08 H Share Announcement of HTSC (Monthly Return of Equity Issuer on Movements in Securities for the Month Ended September 30, 2021)
49 2021-10-20 H Share Announcement of HTSC (Date of Board Meeting)
50 2021-10-30
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Eleventh Meeting of the Fifth Session of the Supervisory
Committee, Announcement by Huatai Securities Co., Ltd. on Change of Employee Representative Supervisor and Chairman of the
Supervisory Committee, Third Quarterly Report of 2021 of Huatai Securities Co., Ltd.
51 2021-11-04
Announcement by Huatai Securities Co., Ltd. on Receiving Reply from the CSRC on Capital Increase in Huatai International Financial
Holdings Company Limited, a Wholly-owned Subsidiary
52 2021-11-05
H Share Announcement of HTSC (Monthly Return of Equity Issuer on Movements in Securities for the Month Ended October 31, 2021), H
Share Announcement of HTSC (2020 Corporate Annual Report)
53 2021-11-23 Announcement by Huatai Securities Co., Ltd. on Results of Jiangsu Guoxin Investment Group Limited Increase its Holding of Shares
54 2021-12-02 Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Twentieth Meeting of the Fifth Session of the Board
55 2021-12-04 H Share Announcement of HTSC (Monthly Return of Equity Issuer on Movements in Securities for the Month Ended November 30, 2021)
56 2021-12-29 Announcement by Huatai Securities Co., Ltd. on the Capital Increase in Huatai International Financial Holdings Company Limited
416
HUATAI SECURITIES
No Date Announcement
1 2021-01-06
Monthly Return of Equity Issuer on Movements in Securities for the Month ended December 31, 2020, Overseas Regulatory
Announcement – Announcement by Huatai Securities Co., Ltd. on the Progress of Repurchase of A Shares of the Company through
Centralized Price Bidding
2 2021-01-07
Overseas Regulatory Announcement – Document of 2021 First Extraordinary General Meeting of Huatai Securities Co., Ltd., Legal
Opinions from King & Wood Mallesons (Nanjing) on the Restricted Share Incentive Scheme of A Shares (Draft) of Huatai Securities Co.,
Ltd., Announcement by Huatai Securities Co., Ltd. on Public Solicitation of Voting Rights by Independent Directors, Notice of 2021 First
Extraordinary General Meeting of Huatai Securities Co., Ltd., Notification Letter and Request Form to Non-registered Holders, Notification
Letter and Request Form to Registered Shareholders, Form of Proxy for the Solicitation of Voting Rights by Independent Non-executive
Director for Use at the 2021 First Extraordinary General Meeting to Be Held on February 8, 2021, Form of Proxy of Holders of H Shares for
Use at the 2021 First Extraordinary General Meeting to Be Held on February 8, 2021, Notice of the EGM, Election of Non-executive Director,
General Mandate to Issue Onshore and Offshore Debt Financing Instruments of the Company, Amendments to the Rules of Procedures
for General Meetings, Proposed Adoption of the Restricted Share Incentive Scheme of A Shares and Notice of the 2021 First Extraordinary
General Meeting
3 2021-01-08 Next Day Disclosure Return
4 2021-01-11
Results of the Repurchase of A Shares, Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Results of
the Implementation of the Repurchase of A Shares and Changes in Shares
5 2021-01-19
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (First Tranche)
6 2021-01-20
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Receiving Reply from the CSRC on Conducting
Market Making Business on Commodities Futures
7 2021-01-21
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for Public Issuance of 2021
Corporate Bonds to Professional Investors (First Tranche)
8 2021-01-26
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for 2021 Short-term Debentures
(First Tranche)
9 2021-01-28
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for 2021 Short-term Debentures
(Second Tranche), Announcement on Coupon Rate of 2021 Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to
Professional Investors (First Tranche)
10 2021-01-29
Connected Transaction – Establishment of a Partnership, Overseas Regulatory Announcement – Announcement by Huatai Securities
Co., Ltd. on the Resolutions of the Twelfth Meeting of the Fifth Session of the Board, Indicative Announcement by Huatai Securities Co.,
Ltd. on Notes on Attending the 2021 First Extraordinary General Meeting during the Prevention of the COVID-19 Pandemic
11 2021-02-01
Overseas Regulatory Announcement – Announcement on Issuance Results for 2021 Subordinated Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (First Tranche)
12 2021-02-02
Monthly Return of Equity Issuer on Movements in Securities for the Month Ended January 31, 2021, Overseas Regulatory Announcement –
Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Seventh Meeting of the Fifth Session of the Board of Supervisors,
Explanations to the Publicity of and Verification Opinions of the Board of Supervisors of Huatai Securities Co., Ltd. on the List of Incentive
Participants under the Restricted Share Incentive Scheme of A Shares, List of Incentive Participants under the Restricted Share Incentive
Scheme of A Shares of Huatai Securities Co., Ltd., Announcement on the Approval of the Restricted Share Incentive Scheme of A Shares
13 2021-02-08
List of Directors and their Roles and Functions, Poll Results of the 2021 First Extraordinary General Meeting – Change of Non-Executive
Director and Proposal on Adjustment to the Composition of Special Committees under the Board, Overseas Regulatory Announcement
– Self-inspection Report of Huatai Securities Co., Ltd. on Dealing the Stocks of the Company by Insiders under the Restricted Share
Incentive Scheme of A Shares, Administration Measures for the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co.,
Ltd., Rules of Procedures for General Meetings of Huatai Securities Co., Ltd. (Revised in 2021), Announcement by Huatai Securities Co., Ltd.
on the Resolutions of the Thirteenth Meeting of the Fifth Session of the Board, Legal Opinions from King & Wood Mallesons on the 2021
First Extraordinary General Meeting of Huatai Securities Co., Ltd., Administration Measures for the Evaluation on the Implementation of
the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd., Restricted Share Incentive Scheme of A Shares of Huatai
Securities Co., Ltd.
14 2021-02-09
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Accumulative Increase of New Borrowings in
Current Year Exceeding Net Assets at the End of Previous Year by 20%
15 2021-03-03 Monthly Return of Equity Issuer on Movements in Securities for the Month Ended February 28, 2021
16 2021-03-11
Date of Board Meeting, Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on the Results of the
Issuance of the 2021 Short-term Debentures (Third Tranche)
17 2021-03-17 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on the Briefing on the Annual Results of 2020
18 2021-03-19
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2020 Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Qualified Investors (First Tranche) (Type I)
2. During the Reporting Period, the Company disclosed the following matters on the HKEXnews
website of HKEX (www.hkexnews.hk):
417
Financial Report and
Documents for Inspection
Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
No Date Announcement
19 2021-03-23
Corporate Social Responsibility Report of Huatai Securities Co., Ltd. for 2020, Results Announcement for the Year Ended December 31,
2020, Announcement in Relation to Provision for Impairment of Assets, Announcement in Relation to Adjustment to Relevant Matters
on the Restricted Share Incentive Scheme of A Shares of the Company, Announcement in Relation to the Grant of the Restricted A
Shares to Incentive Participants under the Restricted Share Incentive Scheme of A Shares, Overseas Regulatory Announcement – Legal
Opinions from King & Wood Mallesons (Nanjing) on Adjustment to Relevant Matters on the Restricted Share Incentive Scheme of A
Shares of Huatai Securities Co., Ltd. and the Grant, 2020 Internal Control Audit Report of Huatai Securities Co., Ltd., Special Explanation
of Huatai Securities Co., Ltd. on Occupation of Non-operating Funds and Transaction of Other Associated Funds for 2020, Report on
Performance of Duties of Audit Committee under the Board of Huatai Securities Co., Ltd. in 2020, Report on Performance of Duties of
Independent Directors of Huatai Securities Co., Ltd. in 2020, Annual Internal Control Evaluation Report of Huatai Securities Co., Ltd. in 2020,
Independent Opinion of Independent Directors of Huatai Securities Co., Ltd. on Matters Concerning 2020 Annual Report of the Company,
Independent Opinions of Independent Directors of Huatai Securities Co., Ltd. on Provision for Impairment of Assets, Independent
Opinions of Independent Directors of Huatai Securities Co., Ltd. on Adjustment to Relevant Matters on the Restricted Share Incentive
Scheme of A Shares and the Grant, List of Incentive Participants under the Restricted Share Incentive Scheme of A Shares of Huatai
Securities Co., Ltd., Verification Opinions of the Board of Supervisors of Huatai Securities Co., Ltd. on Adjustment to Relevant Matters
on the Restricted Share Incentive Scheme of A Shares and the Grant, Announcement by Huatai Securities Co., Ltd. on Anticipation of
Ordinary Transactions with Related Parties in 2021, Announcement on the Re-appointment of the Accounting Firm by Huatai Securities
Co., Ltd., Announcement on Annual Profit Distribution Plan of Huatai Securities Co., Ltd. in 2020, Announcement by Huatai Securities Co.,
Ltd. on the Resolutions of the Fourteenth Meeting of the Fifth Session of the Board, Announcement by Huatai Securities Co., Ltd. on the
Resolutions of the Eighth Meeting of the Fifth Session of the Board of Supervisors, 2020 Annual Report Summary of Huatai Securities Co.,
Ltd., 2020 Annual Report of Huatai Securities Co., Ltd.
20 2021-03-31
Overseas Regulatory Announcement – Summary Report by Huaan Securities and Huatai United Securities on the Continuous Listing of
Overseas Listing of AssetMark under HTSC
21 2021-04-07
Monthly Return of Equity Issuer on Movements in Securities for the Month Ended March 31, 2021, Overseas Regulatory Announcement –
Announcement in Relation to Results of the Grant under the Restricted Share Incentive Scheme of A Shares, Announcement by Huatai
Securities Co., Ltd. on the Completion of Changes to the Nature of Shares and the Progress of the Granting of the Restricted Share
Incentive Scheme of A Shares
22 2021-04-12
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on the Listing of Offshore Bonds on The Stock
Exchange of Hong Kong Limited, Announcement by Huatai Securities Co., Ltd. on Providing Guarantee for the Issuance of Dollar Bonds of
Wholly-owned Offshore Subsidiaries
23 2021-04-19 Date of Board Meeting
24 2021-04-21
2020 Annual Report, Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Providing Guarantee for the
Issuance of Dollar Bonds of Wholly-owned Offshore Subsidiaries, Announcement by Huatai Securities Co., Ltd. on the Listing of Offshore
Bonds on The Stock Exchange of Hong Kong Limited
25 2021-04-22
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2021 Interest Payment for 2020 Corporate Bonds
Publicly Issued to Qualified Investors (Second Tranche)
26 2021-04-23
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Second Tranche)
27 2021-04-27
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2021
and Delisting for 2018 Non-publicly Issued Subordinated Bonds (Second Tranche) (Category I), Announcement on Issuance Results for
2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second Tranche)
28 2021-04-29
First Quarterly Report of 2021, Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on the Resolutions of
the Fifteenth Meeting of the Fifth Session of the Board
29 2021-05-06 Monthly Return of Equity Issuer on Movements in Securities for the Month Ended April 30, 2021
30 2021-05-14
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Third Tranche)
31 2021-05-18
Overseas Regulatory Announcement – Announcement on Issuance Results for 2021 Corporate Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Third Tranche)
32 2021-05-20
Proposed Change of Independent Non-executive Director, Notice of AGM, Circular of 2020 Annual General Meeting, Form of Proxy
of Holders of H Shares for use at the Annual General Meeting to be Held on June 22, 2021, Notification Letter and Request Form to
Non-Registered Holders, Notification Letter and Request Form to Registered Shareholders, Overseas Regulatory Announcement –
Announcement by Huatai Securities Co., Ltd. on 2021 Interest Payment for 2019 Non-publicly Issued Corporate Bonds (First Tranche)
(Type II), Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Sixteenth Meeting of the Fifth Session of the Board,
Document of 2020 Annual General Meeting of Huatai Securities Co., Ltd., Notice of 2020 Annual General Meeting of Huatai Securities Co.,
Ltd., Independent Opinions of Independent Directors of Huatai Securities Co., Ltd. on Nomination of Candidates for Independent Non-
executive Directors of the Company
33 2021-05-21
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Fourth Tranche)
34 2021-05-25
Overseas Regulatory Announcement – Announcement on Issuance Results for 2021 Corporate Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Fourth Tranche)
35 2021-05-28
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2021 Interest Payment for 2013 Corporate Bonds
(Ten-year Bonds)
36 2021-06-03 Monthly Return of Equity Issuer on Movements in Securities for the Month Ended May 31, 2021
37 2021-06-10
Overseas Regulatory Announcement –Announcement by Huatai Securities Co., Ltd. on 2021 Interest Payment for 2020 Corporate Bonds
Publicly Issued to Qualified Investors (Fourth Tranche) (Type II), Announcement by Huatai Securities Co., Ltd. on Settlement and Delisting
in 2021 for 2020 Corporate Bonds Publicly Issued to Qualified Investors (Fourth Tranche) (Category I), Indicative Announcement by
Huatai Securities Co., Ltd. on Notes on Attending the 2020 Annual General Meeting during the Prevention of the COVID-19 Pandemic
38 2021-06-15
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Fifth Tranche)
418
HUATAI SECURITIES
No Date Announcement
39 2021-06-16
Overseas Regulatory Announcement – Announcement on Issuance Results for 2021 Corporate Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Fifth Tranche)
40 2021-06-18
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Sixth Tranche)
41 2021-06-22
List of Directors and their Roles and Functions, Poll Results of the 2020 Annual General Meeting; Payment of Final Dividend; and Change
of Independent Non-executive Director, Overseas Regulatory Announcement – Legal Opinions from King & Wood Mallesons on the 2020
Annual General Meeting of Huatai Securities Co., Ltd.
42 2021-06-23
Overseas Regulatory Announcement – Announcement on Issuance Results for 2021 Corporate Bonds of Huatai Securities Co., Ltd.
Publicly Issued to Professional Investors (Sixth Tranche)
43 2021-06-25
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Short-term Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (First Tranche)
44 2021-06-28
Overseas Regulatory Announcement – Announcement on Issuance Results for 2021 Short-term Debentures of Huatai Securities Co., Ltd.
(Fourth Tranche)
45 2021-06-29
List of Directors and their Roles and Functions, Adjustment to the Composition of Audit Committee, Overseas Regulatory Announcement
– Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Seventeenth Meeting of the Fifth Session of the Board,
Announcement on Issuance Results for 2021 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional
Investors (First Tranche)
46 2021-07-02 Monthly Return of Equity Issuer on Movements in Securities for the Month Ended June 30, 2021
47 2021-07-06
Announcement on Coupon Rate of 2021 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional
Investors (Second Tranche), Announcement by Huatai Securities Co., Ltd. on Jiangsu Guoxin Investment Group Limited Increase its
Holding of Shares of the Company
48 2021-07-08
Overseas Regulatory Announcement – Update Announcement by Huatai Securities Co., Ltd. on Jiangsu Guoxin Investment Group
Limited Increase its Holding of Shares
49 2021-07-12
Overseas Regulatory Announcement – Announcement on Issuance Results for 2021 Short-term Corporate Bonds of Huatai Securities
Co., Ltd. Publicly Issued to Professional Investors (Second Tranche)
50 2021-07-16
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Short-term Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (Third Tranche), Announcement by Huatai Securities Co., Ltd. on Issuance Results for 2021
Short-term Debentures (Fifth Tranche)
51 2021-07-20
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for Public Issuance of 2021
Short-term Corporate Bonds to Professional Investors (Third Tranche)
52 2021-07-23
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for 2021 Short-term Debentures
(Sixth Tranche)
53 2021-07-30
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Implementation of Equity Distribution for 2020,
Special Legal Opinions from King & Wood Mallesons (Nanjing) on Differentiated Distribution of Dividends of Huatai Securities Co., Ltd. in
2020
54 2021-08-03
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2021
and Delisting for 2020 Short-term Corporate Bonds Publicly Issued to Professional Investors (Second Tranche)
55 2021-08-05 Monthly Return of Equity Issuer on Movements in Securities for the Month Ended July 31, 2021
56 2021-08-06
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Short-term Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (Fourth Tranche)
57 2021-08-10
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for Public Issuance of 2021
Short-term Corporate Bonds to Professional Investors (Fourth Tranche)
58 2021-08-13
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Short-term Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (Fifth Tranche)
59 2021-08-17
Date of Board Meeting, Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for
Public Issuance of 2021 Short-term Corporate Bonds to Professional Investors (Fifth Tranche)
60 2021-08-20 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on the Briefing on the Interim Results of 2021
61 2021-08-25
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Short-term Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (Sixth Tranche)
62 2021-08-27
Interim Results Announcement for the Six Months ended June 30, 2021, Overseas Regulatory Announcement – 2021 Interim Report of
Huatai Securities Co., Ltd., 2021 Interim Report Summary of Huatai Securities Co., Ltd., Announcement by Huatai Securities Co., Ltd. on the
Resolutions of the Eighteenth Meeting of the Fifth Session of the Board, Announcement by Huatai Securities Co., Ltd. on Issuance Results
for Public Issuance of 2021 Short-term Corporate Bonds to Professional Investors (Sixth Tranche)
63 2021-09-06
Monthly Return of Equity Issuer on Movements in Securities for the Month Ended August 31, 2021, Overseas Regulatory Announcement –
Announcement on Coupon Rate of 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Seventh
Tranche)
64 2021-09-07
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Change in Registered Address of Jiangsu Equity
Exchange Co., Ltd., a Holding Subsidiary of the Company
65 2021-09-08
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for Public Issuance of 2021
Corporate Bonds to Professional Investors (Seventh Tranche)
66 2021-09-10
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Obtaining Approval of the CSRC for the
Registration of Public Issuance of Perpetual Subordinated Corporate Bonds to Professional Investors
419
Financial Report and
Documents for Inspection
Corporate GovernanceAbout Us
Operating Analysis
and Strategies
ANNUAL REPORT 2021
No Date Announcement
67 2021-09-16
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Perpetual Subordinated Bonds of Huatai Securities
Co., Ltd. Publicly Issued to Professional Investors (First Tranche), Announcement by Huatai Securities Co., Ltd. on Change in Registered
Address of Huatai Innovative Investment Co., Ltd., a Wholly-owned Subsidiary of the Company
68 2021-09-17
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on the Appointment of General Manager of Huatai
Securities (Shanghai) Asset Management Co., Ltd.
69 2021-09-22
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for Public Issuance of 2021
Perpetual Subordinated Bonds to Professional Investors (First Tranche)
70 2021-09-24 Supplemental Announcement of Annual Report for the Year ended December 31, 2020
71 2021-09-28 2021 Interim Report
72 2021-10-07 Monthly Return of Equity Issuer on Movements in Securities for the Month Ended September 30, 2021
73 2021-10-15
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Eighth Tranche)
74 2021-10-19
Date of Board Meeting, Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for
Public Issuance of 2021 Corporate Bonds to Professional Investors (Eighth Tranche)
75 2021-10-22
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly
Issued to Professional Investors (Ninth Tranche)
76 2021-10-26
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for Public Issuance of 2021
Corporate Bonds to Professional Investors (Ninth Tranche)
77 2021-10-27
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Perpetual Subordinated Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (Second Tranche)
78 2021-10-29
Third Quarterly Report of 2021, Change of Employee Representative Supervisor and Chairman of the Supervisory Committee, Overseas
Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Eleventh Meeting of the Fifth Session
of the Board of Supervisors, Announcement by Huatai Securities Co., Ltd. on Issuance Results for Public Issuance of 2021 Perpetual
Subordinated Bonds to Professional Investors (Second Tranche)
79 2021-11-03
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Receiving Reply from the CSRC on Capital
Increase in Huatai International Financial Holdings Company Limited, a Wholly-owned Subsidiary
80 2021-11-04
Monthly Return of Equity Issuer on Movements in Securities for the Month Ended October 31, 2021, 2020 Corporate Annual Report,
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2021
and Delisting for 2021 Short-term Corporate Bonds Publicly Issued to Professional Investors (Sixth Tranche)
81 2021-11-10
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2021 Interest Payment for 2020 Subordinated
Bonds Publicly Issued to Professional Investors (First Tranche)
82 2021-11-17
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Perpetual Subordinated Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (Third Tranche)
83 2021-11-19
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for Public Issuance of 2021
Perpetual Subordinated Bonds to Professional Investors (Third Tranche), Announcement by Huatai Securities Co., Ltd. on 2021 Interest
Payment for 2018 Corporate Bonds Publicly Issued to Qualified Investors (First Tranche) (Type II), Announcement by Huatai Securities
Co., Ltd. on Settlement of the Principal and Interest of 2021 and Delisting for 2018 Corporate Bonds Publicly Issued to Qualified Investors
(First Tranche) (Category I), Announcement by Huatai Securities Co., Ltd. on 2021 Interest Payment for 2020 Corporate Bonds Publicly
Issued to Professional Investors (Fifth Tranche)
84 2021-11-22
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Results of Jiangsu Guoxin Investment Group
Limited Increase its Holding of Shares
85 2021-12-01
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Twentieth Meeting of the
Fifth Session of the Board
86 2021-12-02
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2021 Interest Payment for 2020 Corporate Bonds
Publicly Issued to Professional Investors (Sixth Tranche) (Type II), Announcement by Huatai Securities Co., Ltd. on 2021 Interest Payment
for 2020 Corporate Bonds Publicly Issued to Professional Investors (Sixth Tranche) (Type I)
87 2021-12-03
Monthly Return of Equity Issuer on Movements in Securities for the Month Ended November 30, 2021, Overseas Regulatory Announcement
– Announcement on Coupon Rate of 2021 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional
Investors (Seventh Tranche)
88 2021-12-07
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for Public Issuance of 2021
Short-term Corporate Bonds to Professional Investors (Seventh Tranche)
89 2021-12-10
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Short-term Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (Eighth Tranche)
90 2021-12-20
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Short-term Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (Ninth Tranche)
91 2021-12-22
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for Public Issuance of 2021
Short-term Corporate Bonds to Professional Investors (Ninth Tranche)
92 2021-12-28
Overseas Regulatory Announcement – Announcement on Coupon Rate of 2021 Short-term Corporate Bonds of Huatai Securities Co.,
Ltd. Publicly Issued to Professional Investors (Tenth Tranche), Announcement by Huatai Securities Co., Ltd. on the Capital Increase in
Huatai International Financial Holdings Company Limited
93 2021-12-30
Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Issuance Results for Public Issuance of 2021
Short-term Corporate Bonds to Professional Investors (Tenth Tranche)
420
HUATAI SECURITIES
No Date Announcement
1 2021-01-04 RESTRICTED SHARE INCENTIVE SCHEME OF A SHARES
2 2021-01-07 NOTICE OF THE FIRST EGM OF 2021
3 2021-01-11 RESULTS OF THE REPURCHASE OF A SHARES
4 2021-01-29 ESTABLISHMENT OF A PARTNERSHIP
5 2021-02-08 LIST OF DIRECTORS AND THEIR ROLE AND FUNCTION, RESULTS OF EGM & DIRECTORATE CHANGE
6 2021-03-23
2020 ANNUAL FINANCIAL REPORT, 2020 CORPORATE SOCIAL RESPONSIBILITY REPORT, THE GRANT OF THE RESTRICTED A SHARES, ADJUSTMENT
TO THE SHARE INCENTIVE SCHEME, PROVISION FOR IMPAIRMENT OF ASSETS
7 2021-04-07 RESULTS OF THE GRANT UNDER INCENTIVE SCHEME
8 2021-04-12 NOTICE OF BOND LISTING
9 2021-04-21 2020 ANNUAL REPORT, NOTICE OF BOND LISTING
10 2021-04-29 FIRST QUARTERLY REPORT OF 2021
11 2021-05-20 NOTICE OF AGM、PROPOSED CHANGE OF INDEPENDENT DIRECTOR
12 2021-06-22 RESULT OF AGM
13 2021-06-29 ADJUSTMENT TO THE COMPOSITION OF AUDIT COMMITTEE
14 2021-07-30 IMPLEMENTATION OF EQUITY DISTRIBUTION FOR 2020
15 2021-08-27 2021 INTERIM RESULTS
16 2021-09-24 SUPPLEMENTAL ANNOUCEMENT OF 2020 ANNUAL REPORT
17 2021-09-28 2021 INTERIM REPORT
18 2021-10-29 THIRD QUARTERLY REPORT OF 2021, CHANGE OF THE SUPERVISORY COMMITTEE
3. During the Reporting Period, the Company disclosed the following matters on the website of
the London Stock Exchange (www.londonstockexchange.com):
