As a comprehensive securities company, the company's business covers traditional business types such as securities brokerage, investment banking, securities proprietorship and asset management, and actively develops innovative business. at the same time, through the wholly-owned subsidiary Jushi Venture Capital engaged in private equity fund business, and through the holding subsidiary Nan Securities Futures, Ningxia Stock Exchange Center engaged in futures business, equity trusteeship and other business. The company fully exploits regional business opportunities and has a relatively obvious first-mover advantage in network layout in Jiangsu; at the same time, it has set up 15 branches nationwide, including Ningxia, Shenzhen, Shanghai, Beijing, Yunnan and Chongqing, through talent recruitment localization, shorten the decision-making chain, improve decision-making efficiency, improve the localization level of remote outlets, and actively open up the local market. At present, the company's securities brokerage business in Jiangsu Province has a strong competitive advantage, and established a leading competitive advantage in Ningxia.

The main contents are as follows: (1) as a comprehensive securities company headquartered in Nanjing, the company firmly grasps the opportunity brought by the regional economic development and the rapid development of capital market, and makes a targeted layout of each business. In terms of brokerage business, as of December 31, 2017, the company has 86 securities business departments, of which 42 are located in Jiangsu Province, accounting for 48.84% of the total. On the basis of giving full play to the regional advantages of Jiangsu, the company has set up 15 business departments and 1 branch in Ningxia, with outlets all over most prefecture-level cities in Ningxia. The company has strong pricing power in Ningxia market, and the regional leading competitive advantage is obvious. There are 29 business departments and 6 branches in Beijing, Shanghai, Chongqing, Guangdong, Zhejiang, Yunnan, Fujian, Shandong, Hunan, Shaanxi, Jiangxi and other central cities. The company takes the Yangtze River Delta as the core, Ningxia as the strategic foothold in the central and western regions, and the regional layout of expanding business to the whole country has been formed.

(2) Securities brokerage business, as a channel-driven traditional business, has been the dominant business of the company for many years. The company attaches importance to the development and service of high net worth customers, fully tap the investment and financing needs of customers, introduce external financial products and broaden the sales channels of financial products. At the same time, the company conforms to the investment habits and needs of customers and explores the network marketing model. In addition, the company has established and improved customer classification management, expanded the pilot scale of investment consulting business, unified service marketing, and innovated customer service. According to the statistics of the Securities Industry Association, the net income of corporate agents buying and selling securities ranked 42nd and 43rd respectively in 2015 and 2016, which is the median level of the industry. During the reporting period, the company's securities brokerage business income was 1.910205 billion yuan, 776.9495 million yuan and 568.4425 million yuan respectively, accounting for 63.67%, 51.81% and 41.06% of the current business income, respectively, which is an important source of the company's business income.

(3) the company's innovative business based on margin trading and stock pledge repurchase business is forming a new business driving force. As of December 31, 2017, 84 branches of the company are qualified for margin trading. At the end of each period of the reporting period, the balance of margin trading of the company was 7.887 billion yuan, 5.536 billion yuan and 5.588 billion yuan respectively, and the interest income was 712 million yuan, 448 million yuan and 415 million yuan respectively, accounting for 23.74%, 29.87% and 29.96% of the operating income respectively. At the end of each period of the reporting period, the funds raised by the company's stock pledge repurchase business were 419 million yuan, 880 million yuan and 2.284 billion yuan respectively.