Financial Performance - The total assets of Southwest Securities International amounted to approximately HKD 97.9 million, with net liabilities of about HKD 48.3 million[13]. - The company recorded a net loss of approximately HKD 11.2 million for the year, which is a reduction of about HKD 4.7 million or 29.6% compared to the previous year[21]. - The brokerage and margin financing business recorded revenue of approximately HKD 0.1 million for the year, consistent with the previous year[22]. - The corporate finance segment did not generate any revenue this year, compared to HKD 5.5 million in 2023[23]. - Asset management revenue was approximately HKD 0.9 million this year, while there was no revenue recorded in the previous year[25]. - The trading business generated net revenue of approximately HKD 0.1 million, a significant decrease from HKD 25.6 million in 2023[27]. - Other income for the year was approximately HKD 10.2 million, down from HKD 24.9 million in 2023, primarily due to a decline in bank interest income[29]. - Employee costs for the year were approximately HKD 19.7 million, down from HKD 25.6 million in 2023, reflecting a strategic adjustment in workforce allocation[31]. - Financial costs decreased to approximately HKD 10.3 million, a reduction of HKD 21.5 million or 67.6% compared to HKD 31.8 million in 2023[33]. - The group reported a consolidated loss of approximately HKD 11,216,000 for the year ending December 31, 2024[188]. Business Strategy and Development - The company aims to enhance its comprehensive service capabilities by leveraging opportunities in interconnectivity expansion, green finance, and digital transformation[19]. - The company plans to focus on core business advantages and integrate into the national development strategy to share opportunities with clients and shareholders[15]. - The company will continue to support high-quality development as a key task in the upcoming years[15]. - The company is actively exploring new business opportunities and aims to expand its client base and business prospects in financial advisory, asset management, and brokerage services[35]. Compliance and Governance - The company will strengthen compliance culture and implement ESG principles to contribute to the prosperity of Hong Kong's financial industry[19]. - The company has set effective management policies and internal control systems regarding environmental, social, and governance issues[55]. - The company emphasizes high standards of anti-corruption practices to maintain operational transparency and integrity[58]. - The group has maintained a commitment to high standards of transparency and accountability, ensuring no significant violations of bribery, extortion, fraud, or money laundering laws were found this year[60]. - The board of directors is committed to maintaining high standards of corporate governance to protect and enhance shareholder value[145]. - The company has adopted a standard code for securities trading by directors, ensuring compliance and ethical conduct among its leadership[147]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to monitor specific aspects of the company’s affairs[164]. Financial Position and Liquidity - As of December 31, 2024, the total cash and bank balance was approximately HKD 91.8 million, down from HKD 604.0 million in 2023[36]. - The current ratio was approximately 0.7 times, compared to 0.9 times in 2023, indicating a decline in liquidity[36]. - The group had a net current liability of approximately HKD 48,920,000 and a capital deficit of approximately HKD 48,293,000[188]. - The group has loans totaling approximately HKD 138,532,000 due on June 30, 2025, including HKD 126,771,000 from the controlling shareholder's term loan and HKD 11,761,000 from the revolving loan[188]. - The board has considered the group's cash flow situation and potential financial support from the controlling shareholder, Xizheng International Investment, to ensure operational continuity until March 31, 2026[192]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to expanding its disclosure scope regarding environmental, social, and governance performance[50]. - The environmental, social, and governance report covers the performance for the year ending December 31, 2024[49]. - The company has implemented energy-saving measures, including using energy-efficient appliances and regular maintenance of electrical systems[111]. - The company has established a green procurement policy, prioritizing suppliers that minimize environmental impact[97]. - The company has developed a climate policy to manage risks associated with climate change, integrating it into its risk management processes[104]. - The company has not reported any significant incidents of non-compliance with environmental laws and regulations in 2024[101]. Employee and Workforce Management - As of December 31, 2024, the company had a total of 30 employees, with a gender distribution of 53% male and 47% female[75]. - Employee turnover rate for the year was 23.1%, while the hiring rate was 20%[79]. - The company maintains a 100% full-time employment structure, with no part-time or temporary workers[84]. - The company has established a competitive compensation system based on fairness and market levels, regularly reviewing salaries in line with market conditions and inflation[88]. - Employee training on anti-money laundering was conducted, with 28 participants attending a seminar in October 2024, and all new employees required to complete online tests within their first month[60]. Risk Management - The group has established a robust internal control system to manage compliance and legal risks, with a three-line defense mechanism in place for risk management[194]. - Key risks identified include market risk, credit risk, liquidity risk, and operational risk, with market risk primarily affecting trading and asset management businesses[200]. - The group employs risk exposure metrics, concentration levels, and loss limits to mitigate excessive investment risks[200]. - Credit risk exposure is mainly associated with margin financing, fixed income financial assets, and securities lending arrangements[200]. - The group has enhanced monitoring and management of liquidity risk to ensure normal payment and settlement operations[200].

Financial Performance - For the year ending December 31, 2024, the company reported total revenue of HKD 1,132,000, a significant decrease of 96.4% compared to HKD 31,192,000 in 2023[3]. - Other income for the same period was HKD 10,242,000, down 58.8% from HKD 24,886,000 in 2023[3]. - The company incurred a net loss of HKD 11,216,000 for 2024, an improvement of 29.5% compared to a loss of HKD 15,943,000 in 2023[4]. - Basic and diluted loss per share for 2024 was HKD 0.306, compared to HKD 0.435 in 2023, indicating a 29.5% reduction in loss per share[4]. - The group reported a pre-tax loss of HKD 11,216,000 for the year ending December 31, 2024, compared to a pre-tax loss of HKD 15,943,000 in 2023, indicating an improvement of approximately 29%[36]. - The group recorded a pre-tax loss of approximately HKD 11.2 million for the year, a decrease of about HKD 4.7 million or 29.6% compared to the previous year's pre-tax loss of approximately HKD 15.9 million[62]. - The group did not declare or recommend any dividends for the year ending December 31, 2024, consistent with the previous year[39]. - The group has no significant contingent liabilities as of December 31, 2024, consistent with 2023[78]. Current Financial Position - As of December 31, 2024, the company's cash and bank balances were HKD 91,789,000, a decrease of 84.8% from HKD 603,964,000 in 2023[5]. - The company reported total current liabilities of HKD 146,148,000, down 80.5% from HKD 746,794,000 in 2023[5]. - The company has a net current liability position of HKD 48,920,000 as of December 31, 2024, compared to HKD 37,990,000 in 2023[5]. - The current ratio (current assets to current liabilities) was approximately 0.7 times, down from 0.9 times in 2023[75]. - As of December 31, 2024, the group had a net current liability of approximately HKD 48,920 thousand and a capital deficiency of approximately HKD 48,293 thousand[96]. - The direct holding company loan of approximately HKD 138,532 thousand is due for repayment on June 30, 2025[96]. Going Concern and Financial Support - The company has significant uncertainty regarding its ability to continue as a going concern due to a net loss and current liabilities exceeding current assets[11]. - The company is reliant on continued financial support from its parent company to address its liquidity issues[12]. - The company is facing significant uncertainty regarding its ability to continue as a going concern, dependent on the financial capability of its major shareholder, Western Securities International Investment, to ensure sufficient operating funds until March 31, 2026[13]. - As of the date of the report, Western Securities International Investment has confirmed its intention to provide sufficient financial support to maintain the company's operations until March 31, 2026[16]. - The company has extended the maturity of its major shareholder's term loans and revolving loans from June 30, 2025, to March 27, 2026[16]. Revenue Breakdown - The revenue from brokerage and margin financing was HKD 99,000 in 2024, down from HKD 103,000 in 2023[28][29]. - Corporate finance revenue dropped to HKD 0 in 2024 from HKD 5,522,000 in 2023, reflecting a complete absence of IPO sponsorship and underwriting fees[28][29]. - Asset management revenue increased to HKD 936,000 in 2024 from HKD 0 in 2023, showing growth in this segment[28][29]. - Trading income from securities was HKD 97,000 in 2024, a decrease from HKD 25,567,000 in 2023[28][29]. - The total income from other sources was HKD 10,242,000 in 2024, compared to HKD 24,886,000 in 2023, indicating a decline[28][29]. - Interest income from other sources decreased to HKD 6,604,000 in 2024 from HKD 23,982,000 in 2023, a drop of approximately 72%[33]. Impairment and Credit Losses - The net expected credit loss for financial assets was HKD 19,980,000 in 2024, a significant increase from HKD 1,890,000 in 2023[28][29]. - The total expected credit loss for margin clients was HKD 513,355,000 in 2024, with no changes in the estimation techniques used[43]. - The total impairment loss for accounts receivable from margin clients was HKD 513,698,000 in 2024, compared to HKD 533,695,000 in 2023, indicating a reduction of about 3.8%[40]. - The group recorded a write-off of accounts receivable amounting to approximately HKD 20,096,000 due to court orders as of December 31, 2024 (2023: HKD 1,566,000)[49]. Financial Reporting Standards - The adoption of the revised Hong Kong Financial Reporting Standards is not expected to have a significant impact on the company's financial performance and position[17]. - The company has not early adopted any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[18]. - The new Hong Kong Financial Reporting Standard No. 18, effective from January 1, 2027, will introduce new presentation and disclosure requirements for financial statements[19]. - The company is currently assessing the impact of adopting Hong Kong Financial Reporting Standard No. 18, but it has not yet determined whether it will have a significant effect on the consolidated financial statements[20]. - The company has confirmed that the revised standards will not materially affect its financial situation[20]. - The company is preparing for the implementation of various new and revised financial reporting standards, with expected effective dates ranging from 2025 to 2027[21]. Corporate Governance and Compliance - The company has complied with all corporate governance code provisions during the year, except for the separation of the roles of Chairman and CEO[90]. - The independent auditor confirmed that the consolidated financial statements reflect a true and fair view of the group's financial position as of December 31, 2024[95]. - The audit committee reviewed the performance for the year ended December 31, 2024[97]. - The annual report for 2024 will be sent to shareholders and published on the company's website[99]. - The company's shares have been suspended from trading since March 4, 2024, until further notice[100].

Financial Performance - The group recorded revenue and other income of approximately HKD 8.3 million for the six months ended June 30, 2024, compared to approximately HKD 32.8 million for the same period in 2023, representing a decline of about 74.7%[19] - The group reported a pre-tax loss of approximately HKD 16.0 million for the six months ended June 30, 2024, compared to a pre-tax loss of approximately HKD 5.6 million for the same period in 2023, indicating an increase in losses[19] - The trading business recorded net revenue of approximately HKD 0.1 million, a significant decrease from approximately HKD 17.9 million for the same period in 2023, reflecting a decline of about 99.4%[23] - The corporate finance segment did not record any revenue during the review period, compared to approximately HKD 5.0 million for the same period in 2023[21] - The asset management business did not generate any revenue during the review period, similar to the previous year[22] - The company reported a total revenue of HKD 8,318,000 for the six months ended June 30, 2024, compared to HKD 8,173,000 in the same period of 2023, reflecting a year-on-year increase of approximately 1.77%[36] - The total expenses for the period amounted to HKD 24,365,000, leading to a pre-tax loss of HKD 16,047,000, compared to a loss of HKD 5,561,000 in the previous year[43] - The company reported a net loss attributable to shareholders of HKD 16,047 million for the six months ended June 30, 2024, compared to a loss of HKD 5,561 million for the same period in 2023[70] Revenue Sources - The brokerage and margin financing business generated revenue of approximately HKD 0.1 million during the review period, consistent with the same period in 2023[20] - The company generated brokerage commission income of HKD 48,000, a slight decrease from HKD 49,000 in the previous year[54] - The company did not record any income from IPO sponsorship fees, which was HKD 3,700,000 in the prior year[54] - The company reported total income from other sources of HKD 97,000, a decrease from HKD 17,888,000 in the previous year[54] Financial Position - As of June 30, 2024, the total cash and bank balances were approximately HKD 81.3 million, down from HKD 604.0 million as of December 31, 2023, with a current ratio of 0.6 times[29] - The company has no outstanding bank loans and no bank standby credit as of June 30, 2024, maintaining a stable financial position[30] - The company’s current liabilities exceeded current assets, resulting in a net current liability of HKD 53,979,000 as of June 30, 2024[37] - The company’s total assets less current liabilities stood at HKD (53,124,000) as of June 30, 2024, compared to HKD (37,077,000) at the end of 2023[38] - The company has a significant amount of liabilities due, including HKD 128,451,000 owed to a direct holding company, which is due for repayment by December 31, 2024[46] - The company’s reserves decreased from HKD (983,259,000) at the end of 2023 to HKD (999,306,000) as of June 30, 2024[38] Cash Flow - The company recorded a net cash outflow from operating activities of HKD 522,852,000, significantly higher than the cash inflow of HKD 6,689,000 in the same period last year[43] - The cash and bank balances held in trust accounts amounted to approximately HKD 17,667 thousand as of June 30, 2024, down from HKD 114,635 thousand on December 31, 2023[91] Strategic Focus - The company has strategically reallocated resources to develop its financial advisory services in response to the challenging corporate finance environment[21] - The company plans to continue developing its financial advisory business and explore new opportunities in the bond capital markets, which began operations in December 2021[28] - The company aims to diversify its income sources through asset management services for high-net-worth clients, establishing relationships with major banks[28] - The company is focusing on enhancing risk management and concentrating on high-quality fixed income investments as part of its investment strategy[23] Market Outlook - The economic outlook for China remains cautiously optimistic, with expectations of continued monetary policy support to bolster economic recovery in the second half of 2024[17] - The Hong Kong market is showing signs of improvement, with government policies aimed at stimulating economic recovery and enhancing capital flow between markets[18] Employee and Cost Management - Employee costs for the review period were approximately HKD 11.5 million, down from HKD 14.0 million for the six months ended June 30, 2023, due to adjustments in the company's strategic development plan[25] - Financial costs decreased to approximately HKD 6.3 million, a reduction of about HKD 10.3 million or 62.0% from HKD 16.6 million for the six months ended June 30, 2023[27] Corporate Governance - The company has adopted and complied with the corporate governance code as per the listing rules to protect shareholder interests and enhance corporate value[112] - The company will continue to provide monthly updates to shareholders and potential investors regarding the progress of its comprehensive offer following the recent agreement with a major shareholder[28] Related Party Transactions - For the six months ending June 30, 2024, the company reported related party transactions totaling HKD 4,940,000 in salaries and allowances for key management personnel, a decrease from HKD 5,337,000 in 2023[97] - The company has provided a loan of HKD 120,000,000 to its controlling shareholder at a fixed interest rate of 6.1475%, due by December 31, 2024[98] Shareholder Information - The company’s major shareholder, West Securities Investment, holds 2,713,469,233 shares, representing 74.10% of the voting rights[107] - Mr. Huang entered into a share purchase agreement with West International Investment to acquire 2,713,469,233 shares as of June 21, 2024[108] Compliance and Trading Status - The company’s shares have been suspended from trading since March 4, 2024, until compliance with the resumption guidance issued by the stock exchange[117]

Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of HKD 145,000, a significant decrease of 99.4% compared to HKD 22,913,000 for the same period in 2023[1]. - The company incurred a pre-tax loss of HKD 16,047,000, compared to a loss of HKD 5,561,000 in the previous year, reflecting a year-over-year increase in losses of 188.5%[2]. - The total expenses for the period were HKD 24,365,000, down 36.5% from HKD 38,351,000 in the prior year[1]. - The basic and diluted loss per share for the period was HKD 0.438, compared to HKD 0.152 in the same period last year, representing an increase of 187.5%[2]. - The company reported a total loss before tax of 16,047,000 HKD, reflecting the financial challenges faced during the period[14]. - The group recorded revenue and other income of approximately HKD 8.3 million for the review period, compared to HKD 32.8 million for the six months ended June 30, 2023[35]. - The group reported a pre-tax loss of approximately HKD 16.0 million for the review period, compared to a loss of HKD 5.6 million for the six months ended June 30, 2023[35]. Financial Position - The company reported a net cash and bank balance of HKD 81,292,000 as of June 30, 2024, a decrease of 86.5% from HKD 603,964,000 at the end of 2023[3]. - Current liabilities net value stood at HKD (53,979,000), indicating a deterioration compared to HKD (37,990,000) at the end of 2023[3]. - The company has a capital deficit of approximately HKD 53,124,000 as of June 30, 2024, compared to HKD 37,077,000 at the end of 2023[4]. - The company’s total assets less current liabilities amounted to HKD (53,124,000) as of June 30, 2024, compared to HKD (37,077,000) at the end of 2023[3]. - The company has received a revolving loan of approximately HKD 5,349,000 from its controlling shareholder to support daily operations[6]. - The company is facing significant uncertainty regarding its ability to continue as a going concern due to its financial position and reliance on continued financial support from its controlling shareholder[6]. Revenue Sources - The total revenue from customer contracts for the six months ended June 30, 2024, was 145,000 HKD, compared to 22,913,000 HKD for the same period in 2023, indicating a significant decline[9]. - The brokerage and margin financing segment generated external customer revenue of 48,000 HKD, while the trading segment reported 97,000 HKD for the same period[14]. - The company’s corporate finance segment reported no revenue for the current period, compared to 3,700,000 HKD in the previous year[10]. - The total income from other sources, including interest income, was 97,000 HKD, down from 17,892,000 HKD in the previous year[10]. - The group’s proprietary trading business generated net revenue of approximately HKD 0.1 million, significantly lower than HKD 17.9 million for the six months ended June 30, 2023[39]. Cost Management - The company’s financial costs amounted to 3,279,000 HKD, contributing to the overall loss reported[14]. - The financial costs for the company amounted to HKD 7,736,000 for the six months ended June 30, 2024, compared to HKD 16,576,000 in the previous year, showing a reduction of approximately 53.3%[15]. - Financial costs for the review period amounted to approximately HKD 6.3 million, a decrease of about HKD 10.3 million or 62.0% compared to HKD 16.6 million for the six months ended June 30, 2023[43]. Employee and Operational Changes - The group employed a total of 30 employees as of June 30, 2024, down from 36 employees as of June 30, 2023[51]. - The group has suspended direct operations in the futures and options business since May 20, 2022, to enhance cost efficiency[36]. - The group is strategically reallocating resources to develop financial advisory services in response to challenges in the corporate finance environment[37]. Governance and Compliance - The company has adopted and complied with the corporate governance code as per the listing rules, ensuring high standards of corporate governance to protect shareholder interests[52]. - During the review period, the company confirmed that all directors adhered to the standards set forth in the securities trading code[53]. - The audit committee has reviewed the accounting principles and practices adopted by the group, discussing internal controls and financial reporting matters[55]. - Ernst & Young resigned as the company's auditor on July 7, 2021, and was replaced by Shinewing (HK) CPA Limited, which must be reappointed at the annual general meeting[56]. Future Outlook - The company plans to continue developing its financial advisory business and explore new opportunities in the bond capital market business initiated in December 2021[44]. - The company aims to improve its business and financial performance through a conditional agreement to purchase approximately 74.1% of its issued shares[44]. - The group will provide monthly updates to shareholders and potential investors regarding the latest developments of the comprehensive offer[45]. - The Hong Kong government has implemented several policies to stimulate economic recovery, which may positively impact the group's operations[34].

Environmental Impact - The total greenhouse gas emissions for 2023 amounted to approximately 31.09 tons of CO2 equivalent, with 1.07 tons attributed to direct emissions from gasoline consumption by company vehicles[30]. - The total greenhouse gas emissions amounted to 31.09 tons of CO2 equivalent, with Scope 1 emissions at 1.07 tons and Scope 2 emissions at 30.02 tons[49]. - The total energy consumption of the company was 47,595.86 kWh, with electricity accounting for 44,149 kWh[49]. - The company generated a total of 0.8 tons of non-hazardous waste, with 0.46 tons of paper consumed, of which 0.14 tons were recycled[37]. - The company aims for a recycling rate of ≥90% for waste paper, toner cartridges, and batteries as part of its waste management strategy[46]. - The company has set a five-year target to reduce greenhouse gas emissions, electricity consumption, water usage, and paper consumption[45]. - The company actively participates in the Water Supplies Department's water efficiency labeling scheme, using 100% water-using appliances with a first-class efficiency label[46]. - The company has implemented measures to reduce unnecessary energy usage, including timely shutdown of office equipment when not in use[38]. - The company promotes environmental awareness among employees through visible signage and information dissemination[41]. - The company continues to adhere to national and local environmental laws and regulations, ensuring compliance in emissions and waste management without any significant legal impacts reported in 2023[200]. - The company has implemented measures to protect the environment in accordance with applicable laws and regulations throughout 2023[200]. - No significant events of non-compliance with environmental laws and regulations were reported, indicating a strong commitment to environmental protection measures[200]. - The company has not encountered any major incidents related to air and greenhouse gas emissions, water and land pollution, or waste generation that would impact its operations[200]. - The company continues to monitor and adapt to the latest environmental regulations to ensure compliance and sustainability[200]. Employee Health and Safety - The company has not recorded any workplace injury cases in the current year, nor in the past three years, and has not encountered any significant issues related to employee health and safety regulations[19]. - The company has maintained a zero-tolerance policy towards any form of discrimination in employment decisions and workplace practices[15]. - The employee turnover rate for males is 70%, while for females it is 62.5%[8]. - The total number of employees decreased from 45 to 33, with a notable reduction in the under-30 age group from 10 to 4[49]. - Employee turnover rate for the year was 46.8%, while the hiring rate was 51.5%[183]. - The company emphasizes a healthy and harmonious work environment, viewing employees as its most valuable asset[185]. - The company provides competitive medical insurance plans, life insurance, disability insurance, and dental care[196]. - The average training hours completed by employees this year are detailed, with a focus on anti-money laundering and compliance-related training[4]. - Training coverage percentage for employees was 88%, with an average training completion time of 2.1 hours per employee[178]. - 100% of senior management employees completed their training, averaging 2.3 hours each[178]. - The distribution of trained employees was 57% general staff, 29% middle management, and 14% senior management[178]. - The average training hours for general staff was 1.4 hours, while middle management averaged 1.9 hours[178]. Financial Performance - The total assets of the group are approximately HKD 710 million, with a net loss of about HKD 16 million for the year, a reduction in loss of approximately HKD 22.5 million compared to 2022[98]. - The group's pre-tax loss decreased by approximately HKD 225.3 million or about 93.4%, from a pre-tax loss of approximately HKD 241.2 million in 2022 to approximately HKD 15.9 million in 2023[103]. - Financial costs for the group were approximately HKD 31.8 million, a decrease of about HKD 25.8 million or approximately 44.8% compared to HKD 57.6 million in 2022[103]. - The group's brokerage and margin financing business recorded revenue of approximately HKD 0.1 million, down from HKD 2.3 million in 2022[104]. - The corporate finance business generated revenue of approximately HKD 5.5 million, a decrease of about 50% from HKD 11.0 million in 2022[110]. - The group's trading activities turned profitable, recording a floating profit of approximately HKD 25.6 million, compared to a net loss of HKD 115.3 million in 2022[107]. - Other income and gains increased to approximately HKD 24.9 million in 2023, up from HKD 8.1 million in 2022, mainly due to rising bank interest income[117]. - Employee costs decreased to approximately HKD 25.6 million in 2023 from HKD 42.6 million in 2022, reflecting a strategic alignment with operational needs[119]. - Financial costs reduced to approximately HKD 31.8 million in 2023, down about 44.8% from HKD 57.6 million in 2022, due to the repurchase of USD bonds[121]. - As of December 31, 2023, the total cash and bank balances amounted to approximately HKD 604.0 million, an increase from HKD 378.1 million in 2022, while the current ratio dropped to approximately 0.9 times from 24.8 times in 2022[124]. - The group did not have any significant capital commitments during the year, consistent with 2022[130]. - There were no significant foreign exchange risk exposures as of December 31, 2023, similar to 2022[131]. Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring high standards of governance to protect shareholder interests[68]. - The board of directors emphasizes the importance of maintaining high corporate governance standards to enhance shareholder value and investor confidence[68]. - The company emphasizes the importance of stakeholder engagement for long-term success, maintaining close communication with key stakeholders including government, shareholders, employees, and customers[155]. - The company has established a comprehensive compliance manual to protect customer data, ensuring that collected information is used solely for its intended purposes[164]. - The company has implemented a complaint handling procedure to manage customer complaints, aiming to respond formally within 30 business days[173]. - The company adheres to the Hong Kong Prevention of Bribery Ordinance, maintaining high standards of anti-corruption practices[162]. - The company encourages reporting of misconduct through a confidential whistleblowing policy, ensuring fair investigations and protection for whistleblowers[162]. - The company has not identified any violations of bribery, extortion, fraud, or money laundering laws that significantly impact its operations during the year[163]. - The company actively monitors customer satisfaction levels to understand customer expectations and needs[171]. - The company has developed internal procedures to ensure high-quality products and services, including a compliance manual and sales handbook[172]. - The company has a backup server in place to prevent data loss and has established a comprehensive emergency plan to enhance response capabilities[172]. Market and Economic Conditions - In 2023, China's GDP grew by 5.2%, slightly above the target of around 5%, marking a recovery of 2.2 percentage points from the previous year[95]. - Hong Kong's GDP increased by 3.2% in 2023, with the unemployment rate falling below 3%, indicating economic resilience[95]. - The Hang Seng Index closed at 17,047 points at the end of 2023, down 13.8% from the end of 2022, marking the lowest level in nearly a decade[95]. - The Consumer Price Index (CPI) in China rose by only 0.2% year-on-year in 2023, reflecting ongoing economic challenges[95]. - The real estate sector in China saw a decline in sales, with the total area of commercial housing sold decreasing by 8.5% year-on-year in 2023[95]. - The Federal Reserve's interest rate hikes are nearing an end, with expectations of potential rate cuts in the second half of 2024, which may create a more favorable environment for global capital markets[96]. - The People's Bank of China announced a 25 basis point reduction in the 5-year LPR to 3.95% on February 20, 2024, to support economic growth[96]. - Geopolitical risks remain significant, with ongoing conflicts such as the Russia-Ukraine war and tensions in the Taiwan Strait impacting global economic recovery[96]. - Future outlook indicates that if the Federal Reserve begins to lower interest rates, it could benefit the global capital markets, including Hong Kong stocks, with a focus on risk control and business restructuring to enhance profitability[123]. Compliance and Ethical Standards - The company has not identified any harmful practices in its operations that could lead to significant legal repercussions[200]. - The company has not reported any misleading or deceptive statements in its advertising and sales materials, reinforcing its commitment to responsible financial services[199]. - The company is dedicated to maintaining transparency and integrity in its communications with investors and clients[199]. - The company emphasizes the importance of accurate and clear communication in advertising, requiring written approval from relevant department heads and regulatory teams before any marketing materials are published[199]. - The procurement system is strict and systematic, ensuring open and equal trading opportunities with suppliers[197]. - The company conducts regular meetings with suppliers to share market information and product updates[198].

Financial Performance - The company reported total revenue of HKD 31,192 thousand for the year ended December 31, 2023, compared to a loss of HKD 102,042 thousand in 2022, indicating a significant recovery[2]. - Other income and gains increased to HKD 24,886 thousand in 2023 from HKD 8,051 thousand in 2022, reflecting a growth of approximately 209%[2]. - The company incurred a net loss of HKD 15,943 thousand for the year, a substantial improvement from a loss of HKD 241,138 thousand in the previous year[12]. - The company reported a pre-tax loss of HKD 15,943,000 for 2023, a significant improvement from a loss of HKD 241,234,000 in 2022[23]. - The group reported a loss of HKD 15,943 thousand for the year 2023, compared to a loss of HKD 241,138 thousand in 2022, indicating a significant improvement[39]. - The basic and diluted loss per share for 2023 was HKD 0.435, a decrease from HKD 6.585 in 2022, reflecting a positive trend in financial performance[39]. - The group recorded a pre-tax loss of approximately HKD 15.9 million for the year, a reduction of about HKD 225.3 million or approximately 93.4% compared to the previous year's pre-tax loss of HKD 241.2 million[131]. Cash and Liquidity - As of December 31, 2023, the company had cash and bank balances of HKD 603,964 thousand, up from HKD 378,104 thousand in 2022, representing a 59.7% increase[13]. - The company’s current liabilities exceeded current assets by HKD 37,990 thousand, indicating potential liquidity challenges[13]. - The company has confirmed that it will have sufficient financial support from its major shareholder to maintain operations until June 30, 2025[27]. - The group’s cash and bank balances totaled approximately HKD 604.0 million as of December 31, 2023, up from approximately HKD 378.1 million in 2022[160]. - The group’s current ratio was approximately 0.9 times, a significant decrease from approximately 24.8 times in 2022[160]. Expenses and Cost Management - Employee costs decreased to HKD 25,626 thousand in 2023 from HKD 42,553 thousand in 2022, a reduction of approximately 39.8%[2]. - Interest expenses on bonds decreased to HKD 30,185,000 in 2023 from HKD 52,858,000 in 2022, reflecting a reduction of approximately 43%[21]. - The financial costs incurred were HKD 18,477 thousand, reflecting the company's operational expenses[76]. - Financial costs for the group decreased to approximately HKD 31.8 million, down about HKD 25.8 million or 44.8% compared to approximately HKD 57.6 million in 2022[149]. - The group’s service fees and commission expenses were approximately HKD 0.2 million, a decrease from approximately HKD 3.8 million in 2022 due to reduced trading volumes[157]. Revenue Sources - Total revenue from external customers in the brokerage and margin financing segment was HKD 2,283 thousand, while corporate finance generated HKD 10,983 thousand, showing varied performance across segments[41]. - The group’s brokerage and margin financing business recorded revenue of approximately HKD 0.1 million, down from approximately HKD 2.3 million in 2022[150]. - The total income from asset management services was reported as HKD 25,567 thousand[76]. - The group has not recorded any revenue from asset management services for the year, consistent with the previous year[139]. - The group recorded guarantee service income of approximately HKD 3.7 million, a decrease of about HKD 2.5 million or approximately 40.3% compared to the previous year's income of HKD 6.2 million[136]. Debt and Financial Obligations - The company has a bond payable of HKD 722,422 thousand due on February 9, 2024, which poses a significant financial obligation[18]. - The company’s total non-current liabilities included no bonds payable in 2023, a decrease from HKD 797,500 thousand in 2022, reflecting a restructuring of debt[4]. - The company’s equity reserves showed a deficit of HKD 983,259 thousand as of December 31, 2023, compared to a deficit of HKD 967,316 thousand in 2022, indicating ongoing financial strain[4]. - The group completed the repurchase of USD 10 million of the 2021 USD bonds during the year[168]. - The company repurchased and canceled USD 10,000,000 of its 2021 USD bonds, leaving a remaining balance of USD 92,500,000 due on February 9, 2024[114]. Operational Changes and Strategy - The group has ceased direct operations in futures and options as of December 2021 to enhance cost efficiency, and has also suspended direct operations in the securities brokerage and margin financing business since May 2022[132]. - The group aims to diversify its asset management revenue sources and has begun developing external asset management services this year[140]. - The group has implemented strategies to control risks and reduce costs while gradually adjusting its business structure to capture market recovery opportunities[159]. - The group plans to enhance management capabilities and expand distribution channels to improve business coverage and product variety[152]. Market and Economic Context - The Chinese economy grew by 5.2% in 2023, slightly exceeding the growth target of around 5%[120]. - The Hang Seng Index closed at 17,047 points at the end of 2023, down approximately 13.8% from the end of 2022, marking a historical decline for four consecutive years[130]. Employee and Operational Metrics - The group employed a total of 33 employees as of December 31, 2023, down from 45 employees in 2022[174]. - The group had no outstanding bank loans as of December 31, 2023, and had a total bank standby credit of zero HKD, down from HKD 80 million in 2022[184].

Financial Performance - The group recorded total revenue of HKD 32.8 million for the six months ended June 30, 2023, compared to a loss of HKD 108.6 million for the same period in 2022, representing a significant recovery [49]. - The net revenue from trading activities reached HKD 17.9 million, a substantial increase of 133.0 million compared to a net loss of HKD 115.1 million in the previous year [49]. - The group reported a pre-tax loss of HKD 5.6 million for the first half of 2023, a notable improvement from a pre-tax loss of HKD 201.6 million in the same period of 2022 [49]. - For the six months ended June 30, 2023, the company reported a loss attributable to equity shareholders of HKD 5,561,000 compared to a loss of HKD 201,619,000 for the same period in 2022, representing a significant improvement [80]. - Total expenses for the period were HKD 38,351,000, down from HKD 93,025,000 in the previous year, indicating a reduction of approximately 58.8% [78]. - The company reported other income and gains of HKD 9,877 thousand for the six months ended June 30, 2023, compared to HKD 1,030 thousand in 2022, representing an increase of approximately 860.77% [128]. Market Conditions - The Hang Seng Index experienced a decline of 4.4% by the end of June 2023, closing at 18,916 points compared to the end of 2022 [48]. - The overall economic environment in Hong Kong showed signs of recovery, driven by strong local demand and tourism, which positively impacted the financial market [43]. - The macroeconomic recovery in China is expected to accelerate in the second half of 2023, improving market expectations and corporate performance [46]. Business Segments - The group’s business encompasses brokerage and margin financing, corporate finance, asset management, and proprietary trading, indicating a diversified revenue stream [49]. - The brokerage and margin financing business recorded revenue of HKD 0.1 million, a significant decrease of HKD 2.0 million or approximately 95.2% compared to the same period in 2022 [50]. - Corporate finance business revenue increased to HKD 5.0 million, up HKD 1.6 million or approximately 47.1% from HKD 3.4 million in the same period last year [51]. - Underwriting and placement service revenue reached HKD 1.3 million, a slight increase of HKD 0.2 million or approximately 18.2% compared to HKD 1.1 million in the previous year [54]. - The trading business recorded a net revenue of HKD 17.9 million, recovering from a net loss of HKD 115.1 million in the same period last year [57]. Cost Management - Financial costs decreased to HKD 16.6 million, down approximately HKD 21.0 million or 55.9% from HKD 37.6 million in the previous year [60]. - Employee costs were HKD 14.0 million, a decrease from HKD 23.7 million in the same period last year [59]. - The company’s employee costs decreased to HKD 14,008,000 from HKD 23,741,000, a reduction of about 41.4% year-on-year [77]. Assets and Liabilities - The company’s cash and bank balances totaled HKD 387.4 million as of June 30, 2023, compared to HKD 378.1 million at the end of 2022 [66]. - As of June 30, 2023, total assets amounted to HKD 720,673,000, down from HKD 807,132,000 as of December 31, 2022, reflecting a decrease of approximately 10.7% [89]. - The company had no outstanding bank loans as of June 30, 2023, consistent with the position at December 31, 2022, and had a total of zero HKD in bank standby credit, down from HKD 80 million at the end of 2022 [124]. - The company had no significant contingent liabilities or capital commitments as of June 30, 2023, consistent with the previous year [69][70]. - There were no significant foreign exchange risks as of June 30, 2023, similar to the situation at the end of 2022 [71]. Human Resources - The company continues to focus on employee development through diverse training programs to enhance skills and competitiveness [72]. - The company is committed to reviewing its human resources policies annually to ensure alignment with management needs and market conditions [72]. - The company employed 36 staff as of June 30, 2023, a reduction from 65 employees as of June 30, 2022, reflecting a decrease of approximately 44.62% [127]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 103,087 thousand, down from HKD 393,683 thousand in 2022, indicating a decrease of about 73.8% [128]. - The net cash used in financing activities was HKD 96,398 thousand for the six months ended June 30, 2023, compared to HKD 494,162 thousand in the same period of 2022, indicating a decrease of about 80.5% [128]. - The cash and cash equivalents increased by HKD 6,689 thousand during the period, compared to a decrease of HKD 101,630 thousand in the previous year [128]. - The company’s total cash and cash equivalents at the end of the period stood at HKD 387,423 thousand, a significant increase from HKD 182,373 thousand at the end of 2022, reflecting an increase of approximately 112% [128].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概 不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的 任何損失承擔任何責任。 Southwest Securities International Securities Limited 西 證 國 際 證 券 股 份 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：812） 截 至2023年6月30日 止 六 個 月 中 期 業 績 公 告 西 證 國 際 證 券 股 份 有 限 公 司（「本 公 司」）董 事（「董 事」）會（「董 事 會」）欣 然 宣佈本公司及其附屬公司（「本集團」）截至2023年6月30日止六個月（「回顧 期」）之 未 經 審 核 中 期 業 績，連 同 截 至2022年6月30日 止 六 個 月 之 比 較 數 字如下： 簡 明 綜 合 損 益 及 其 他 全 面 收 益 表 未經審核 截至6月30日止六個月 2023年 2022年 附註 千港元 千港元 收益 3 22,913 (109,624) 其他收入及收益 5 9,877 1,03 ...

Financial Performance - The group recorded a net loss of approximately HKD 115.3 million for the year, an increase of about HKD 223.4 million or 206.7% compared to the previous year, which had a net profit of HKD 108.1 million[21]. - The company recorded a net loss of approximately HKD 241 million for the year, an increase in loss of about HKD 182 million compared to the same period in 2021[32]. - The company reported a pre-tax loss of approximately HKD 241.2 million for the year, an increase of about 308.8% compared to a pre-tax loss of HKD 59.0 million in 2021[39]. - The group’s net loss from trading activities for the year was approximately HKD 115.3 million, compared to a net income of HKD 108.1 million in 2021[70]. - The company reported a consolidated loss of approximately HKD 241,138 thousand for the year ended December 31, 2022, with a capital deficit of about HKD 21,134 thousand[189]. Revenue and Business Segments - Revenue from brokerage and margin financing business decreased to approximately HKD 2.3 million, down by about HKD 10.5 million or 82.0%[22]. - Brokerage and margin financing business generated revenue of approximately HKD 2.3 million, down 82.7% from HKD 12.8 million in 2021[40]. - Corporate finance business recorded revenue of approximately HKD 11.0 million, an increase of 25.0% from HKD 8.8 million in 2021, primarily due to an increase in underwriting and placement services[41]. - The overall market turnover decreased significantly, impacting retail investor commission income, which fell to approximately HKD 0.9 million from HKD 5.2 million in 2021, a decline of about 82.7%[41]. - The company’s margin financing interest income dropped to approximately HKD 0.8 million, down 83.3% from HKD 4.8 million in 2021[41]. Market Conditions - The total market capitalization of the Hong Kong securities market decreased by approximately 16% to about HKD 35.7 trillion by the end of 2022[14]. - The average daily trading amount fell by 25.1% year-on-year to approximately HKD 124.9 billion[14]. - The Hong Kong GDP declined by 3.5% in 2022, influenced by factors such as the pandemic and tightening financial conditions[31]. - The Hang Seng Index experienced significant volatility, reaching a high of 25,050 points in February before dropping to a low of 14,597 points in October, and rebounding approximately 35% by the end of December[31]. - The Chinese economy grew by 3.0% in 2022, below the expected growth rate of around 5.5% but still better than most economists' forecasts[31]. Strategic Direction and Adjustments - The group plans to adjust its strategic development direction, continuing to operate futures, options, and securities brokerage businesses in a referral manner[23]. - The group adjusted its investment strategy to focus on high-grade fixed income investments, achieving the expected investment results amid market volatility[26]. - The group aims to optimize its asset management business and explore differentiated development paths in response to macroeconomic challenges[69]. - The group has ceased direct operations in certain business segments to focus resources on its core strengths[65]. - The company plans to seize strategic transformation opportunities in 2023, focusing on risk control and compliance operations[105]. Risk Management and Compliance - The group is committed to compliance operations and risk management to navigate market opportunities and challenges[16]. - The company faces significant financial risks including interest rate risk, credit risk, foreign exchange risk, liquidity risk, and equity price risk[157]. - The company assessed the credit risk management practices and credit provisioning policies related to receivables from margin clients[197]. - The company tested the appropriateness of identifying significant increases in credit risk and categorized risks into three stages, including checking overdue loan data and loan-to-value ratios[197]. - The company evaluated management's judgments and assumptions against external data sources, including default rates published by credit rating agencies[197]. Governance and Corporate Responsibility - The group has implemented effective management policies and internal control systems regarding environmental, social, and governance issues[3]. - The company has maintained a commitment to high standards of anti-corruption practices to ensure transparency and accountability[120]. - The board has implemented a diversity policy to enhance efficiency and corporate governance, considering factors such as gender, age, cultural background, and professional experience[143]. - The company encourages continuous professional development for all directors, ensuring they stay informed about regulatory updates and corporate governance matters[150]. - The company has arranged appropriate insurance for directors and senior personnel to protect against liabilities arising from corporate activities[128]. Financial Position - The total asset value of the company is approximately HKD 809 million, with a net liability of about HKD 21 million[32]. - The group's total cash and bank balances as of December 31, 2022, amounted to approximately HKD 378.1 million, an increase from HKD 285.1 million in 2021[62]. - As of December 31, 2022, the group had no outstanding bank loans and maintained a total bank standby credit of HKD 80.0 million, unchanged from 2021[108]. - The company has zero reserves available for distribution to shareholders as of December 31, 2022[192]. - The company has a significant uncertainty regarding its ability to continue as a going concern due to the upcoming maturity of bonds amounting to HKD 797,500 thousand in February 2024[189].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概 不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的 任何損失承擔任何責任。 Southwest Securities International Securities Limited 西 證 國 際 證 券 股 份 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：812） 截 至2022年12月31日 止 年 度 全 年 業 績 公 告 西 證 國 際 證 券 股 份 有 限 公 司*（「本 公 司」）董 事（「董 事」）會（「董 事 會」）提 呈 本 公 司 及 其 附 屬 公 司（「本 集 團」）截 至2022年12月31日 止 年 度（「本 年 度」） 之綜合全年業績連同截至2021年12月31日止年度之比較數字如下： 綜 合 損 益 及 其 他 全 面 收 益 表 截至2022年12月31日止年度 2022年 2021年 附註 千港元 千港元 收益 2 (102,042) 129,633 其他收入及收益 4 8,051 5,218 (93,991) 1 ...