Financial Performance - For the six months ended September 30, 2024, the company's revenue was HKD 448,778,000, a decrease of 6.0% compared to HKD 477,376,000 for the same period in 2023[2] - Interest income calculated using the effective interest method was HKD 140,284,000, down from HKD 147,056,000, representing a decline of 4.9%[2] - The company's operating profit for the period was HKD 448,226,000, slightly down from HKD 453,012,000, a decrease of 1.7%[5] - Profit before tax increased to HKD 343,641,000, up 3.9% from HKD 330,833,000 in the previous year[5] - Net profit for the period was HKD 312,024,000, compared to HKD 303,627,000, reflecting a growth of 2.3%[5] - Basic and diluted earnings per share for the period were both 18.38 cents, an increase from 17.89 cents in the previous year[5] - The company reported a total comprehensive income of HKD 448,778 for the six months ended September 30, 2024, compared to HKD 477,376 in the previous year, indicating a decrease of approximately 6.0%[24] - The company's profit attributable to equity shareholders for the six months ended September 30, 2024, was HKD 312,024,000, compared to HKD 303,627,000 for the same period in 2023, representing a growth of 0.13%[46] - Basic earnings per share increased to 18.38 cents for the six months ended September 30, 2024, up from 17.89 cents in the previous year, reflecting a growth of 2.73%[46] Assets and Liabilities - Total current assets as of September 30, 2024, were HKD 7,908,283,000, an increase from HKD 6,886,049,000[7] - Total liabilities increased to HKD 6,893,551,000 from HKD 5,577,431,000, indicating a rise of 23.6%[7] - The company's total assets decreased to HKD 1,196,191,000 from HKD 1,444,275,000, a decline of 17.2%[9] - The company reported a net asset value of HKD 1,196,191,000 as of September 30, 2024, down from HKD 1,444,275,000[9] - The total accounts receivable as of September 30, 2024, was HKD 7,180,720,000, compared to HKD 6,349,686,000 as of March 31, 2024, showing an increase of 13.06%[49] - The total accounts payable increased significantly to HKD 3,665,774,000 as of September 30, 2024, from HKD 1,702,548,000 as of March 31, 2024, reflecting an increase of 115.5%[55] - The company reported total bank loans of HKD 3,099,348,000 as of September 30, 2024, down from HKD 3,775,000,000 as of March 31, 2024, a decrease of 17.9%[58] - The fair value of collateral pledged to banks for loans was HKD 5,632,468,000 as of September 30, 2024, compared to HKD 5,933,698,000 as of March 31, 2024, indicating a decrease of 5.08%[59] Revenue Streams - Total reported segment revenue for the six months ended September 30, 2024, was HKD 448,563, a decrease from HKD 477,208 for the same period in 2023, representing a decline of approximately 6.4%[23] - Brokerage commission income increased to HKD 222,666 for the six months ended September 30, 2024, compared to HKD 234,856 in the prior year, reflecting a decrease of about 5.0%[21] - Commission income from securities brokerage was HKD 135.5 million, an increase of 9.6% from HKD 123.6 million in the previous year, accounting for 30.2% of total revenue[74] - The group recorded a significant increase of 381.9% in commission income from IPO brokerage, reaching HKD 0.906 million compared to HKD 0.188 million in the previous year[77] Expenses and Costs - The company incurred financial costs of HKD 104,585 for the six months ended September 30, 2024, down from HKD 122,179 in the previous year, representing a decrease of approximately 14.4%[37] - Operating expenses decreased by 1.7% to HKD 300.2 million from HKD 305.4 million in the previous year[82] - Employee costs increased by 15.6% to HKD 73,301,000 in 2024 from HKD 63,388,000 in 2023[83] - Advertising and promotional expenses rose by 24.8% to HKD 7,469,000 in 2024 compared to HKD 5,983,000 in 2023[83] Market Conditions and Strategies - Hong Kong's GDP growth forecast for 2024 is between 2.5% and 3.5%, primarily driven by domestic demand recovery and tourism revival[61] - The ongoing geopolitical tensions and economic uncertainties have negatively impacted investor sentiment in Hong Kong, leading to a wave of brokerage closures[61] - The company remains optimistic about future market opportunities and aims to maximize returns for shareholders[66] - The company has implemented promotional strategies such as commission-free trading for new customers and cash rebates for margin trading, which contributed to the increase in customer accounts and trading activity[66] - The company continues to invest in marketing resources despite market challenges, focusing on both online and offline promotions to attract customers[66] Customer Metrics - The company recorded a net profit of HKD 312 million during the period, with the number of customer accounts increasing to 571,170 as of September 30, 2024[66] - The total number of customer accounts increased by 2.8% to 571,170, up from 555,568 accounts as of September 30, 2023[71] - Customer assets rose by 11.6% to approximately HKD 59.5 billion, compared to HKD 53.3 billion as of September 30, 2023[71] Technology and Innovation - The group continues to invest heavily in optimizing online trading channels and enhancing security measures to meet the rising demand for fintech solutions[68] - The introduction of a 24-hour direct payment service allows clients to deposit and trade globally at any time, breaking traditional industry norms[91] - The group is actively developing new global financial products to meet increasing investor demand, including a focus on U.S. stocks[89] - The company has launched a pre-market trading feature for U.S. stocks on its "Yao Cai Bao Bao" app, responding to increased interest in U.S. markets[90] - The group has invested significantly in upgrading its online trading systems, conducting large-scale tests to ensure efficiency and stability, including simulations at ten times the current peak trading volume of the Hong Kong Stock Exchange[94] Compliance and Governance - The company has fully complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules during the reporting period[117] - The company maintains a low credit risk due to its policy of requiring collateral from cash and margin clients before executing any purchase transactions[105] - The company regularly monitors its liquidity needs and ensures compliance with borrowing covenants to maintain sufficient cash reserves[109] Awards and Recognition - The group has received multiple awards, including "Best Retail Broker" from the Hong Kong Stock Exchange and "Outstanding Partner for 2024" from the Chicago Mercantile Exchange, highlighting its strong market presence and brand recognition[92]

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之內容概不負責，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之任何損失承擔任何責任。 茲提述耀才證券金融集團有限公司 (「本公司」) 日期為二零二四年十一月十三日的 公告（「該公告」）。 本公司董事會 (「董事會」) 謹此澄清，董事會會議日期應為二零二四年十一月二十 六日(星期二)，而非二零二四年十一月二十五日(星期一)。除上文所披露者，該公告 內所有其他資料保持不變。 承董事會命 耀才證券金融集團有限公司 執行董事兼行政總裁 許繹彬 香港，二零二四年十一月十四日 於本公告日期，董事會由執行董事葉茂林先生（主席）、許繹彬先生（行政總裁）、陳永誠 先生；以及獨立非執行董事余韌剛先生、司徒維新先生、凌國輝先生及黃婷婷小姐組成。 BRIGHT SMART SECURITIES & COMMODITIES GROUP LIMITED 耀才證券金融集團有限公司 ( 於開曼群島註冊成立之有限公司 ) (股份代號: 1428) 澄清公告 董事會會議召開日期 ...

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之內容概不負責，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之任何損失承擔任何責任。 耀才證券金融集團有限公司 (「本公司」) 董事會 (「董事會」) 謹此宣佈將於二零 二四年十一月二十五日 (星期一) 召開董事會會議，藉以審議及通過 (其中包括) 本 公司及其附屬公司截至二零二四年九月三十日止六個月之中期業績及其發佈，以及 考慮派發中期股息 (如有)。 ( 於開曼群島註冊成立之有限公司 ) (股份代號: 1428) 董事會會議召開日期 BRIGHT SMART SECURITIES & COMMODITIES GROUP LIMITED 耀才證券金融集團有限公司 承董事會命 耀才證券金融集團有限公司 執行董事兼行政總裁 許繹彬 香港，二零二四年十一月十三日 於本公告日期，董事會由執行董事葉茂林先生（主席）、許繹彬先生（行政總裁）、陳永誠 先生；以及獨立非執行董事余韌剛先生、司徒維新先生、凌國輝先生及黃婷婷小姐組成。 ...

截至二零二四年三月三十一日止年度之 全年業績公告 | --- | --- | --- | --- | |------------|-------|------------|------------| | | | | | | | | 二零二四年 | 二零二三年 | | | 附註 | 千元 | 千元 | | 經營溢利 | | 864,903 | 806,397 | | 財務成本 | 7(a) | (259,855) | (114,202) | | 除稅前溢利 | 7 | 605,048 | 692,195 | | 所得稅 | 8 | (46,206) | (71,600) | | 年內溢利 | | 558,842 | 620,595 | 其後可能重新分類至損益的項目 — 匯兌儲備 (333) 285 基本（仙） 9 32.93 36.56 攤薄（仙） 9 32.93 36.56 二零二四年 二零二三年 附註 千元 千元 物業、廠房及設備 112,094 88,667 無形資產 5,783 5,783 遞延稅項資產 3,761 801 其他應收款項、按金及預付款項 15,530 2,941 其他資產 55,239 ...

Interim Financial Results [Consolidated Comprehensive Income Statement](index=1&type=section&id=1.1%20Consolidated%20Comprehensive%20Income%20Statement) The Group's revenue increased by 0.9% to HKD 440 million, with profit for the period up 31.4% to HKD 303.6 million, driven by reduced finance costs and higher margin financing interest income Key Data from Consolidated Comprehensive Income Statement (For the six months ended September 30) | Indicator | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :----------------------- | :------------------- | :------------------- | :------------- | | Revenue | 440,016 | 436,239 | 0.9% | | Operating Profit | 453,012 | 307,616 | 47.3% | | Profit Before Tax | 330,833 | 262,186 | 26.2% | | Profit for the Period | 303,627 | 231,084 | 31.4% | | Basic Earnings Per Share | 17.89 cents | 13.61 cents | 31.4% | | Finance Costs | (122,179) | (45,430) | 168.9% | | Other Net Losses | (15,887) | (30,722) | -48.3% | [Consolidated Statement of Financial Position](index=3&type=section&id=1.2%20Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2023, total assets grew to HKD 8.05 billion, but net current assets and the current ratio declined, while increased bank borrowings led to a significant rise in the gearing ratio Key Data from Consolidated Statement of Financial Position (As of September 30) | Indicator | 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | Change (%) | | :----------------------- | :------------------- | :----------------------------- | :--------- | | Total Assets | 8,050,790 | 7,729,370 | 4.2% | | Total Liabilities | (6,861,730) | (5,994,956) | 14.4% | | Total Equity | 1,189,060 | 1,734,414 | -31.5% | | Cash and Cash Equivalents | 400,866 | 504,531 | -20.6% | | Net Current Assets | 1,053,410 | 1,603,532 | -34.3% | | Current Ratio | 1.2 times | 1.3 times | -7.7% | | Gearing Ratio | 435.7% | 254.2% | 71.4% | [Notes to Interim Financial Report](index=5&type=section&id=1.3%20Notes%20to%20Interim%20Financial%20Report) This section details the financial report's preparation basis, accounting policy changes, segment performance, revenue, other gains/losses, tax, EPS, dividends, and accounts/borrowings [Basis of Preparation](index=5&type=section&id=1.3.1%20Basis%20of%20Preparation) - This interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[45](index=45&type=chunk) [Changes in Accounting Policies](index=5&type=section&id=1.3.2%20Changes%20in%20Accounting%20Policies) - The Group has applied certain amendments issued by the Hong Kong Institute of Certified Public Accountants, including amendments to HKAS 8 and HKAS 12, which had no significant impact on the current period's results and financial position[30](index=30&type=chunk)[31](index=31&type=chunk)[46](index=46&type=chunk) - The HKICPA issued new guidance on the accounting impact of abolishing the MPF offsetting long service payment mechanism, and the Group has assessed and decided to change the relevant accounting policies, expected to be applied retrospectively in the financial statements for the year ending March 31, 2024[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[77](index=77&type=chunk) [Segment Reporting](index=7&type=section&id=1.3.3%20Segment%20Reporting) - The Group's business is divided into three reportable segments: securities brokerage, commodities and futures brokerage, and spot gold trading, with segment performance assessed by profit before finance costs and tax (EBIT)[35](index=35&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[57](index=57&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) Reportable Segment Revenue and Profit (For the six months ended September 30) | Segment | 2023 Revenue (HKD thousands) | 2023 EBIT (HKD thousands) | 2022 Revenue (HKD thousands) | 2022 EBIT (HKD thousands) | | :----------------------------- | :--------------------------- | :------------------------ | :--------------------------- | :------------------------ | | Securities Brokerage | 331,843 | 378,571 | 308,052 | 245,730 | | Commodities and Futures Brokerage | 104,805 | 64,713 | 124,262 | 55,733 | | Spot Gold Trading | 3,200 | 1,831 | 3,509 | 2,137 | | **Total** | **439,848** | **445,115** | **435,823** | **303,600** | [Revenue](index=11&type=section&id=1.3.4%20Revenue) Revenue by Major Categories (For the six months ended September 30) | Revenue Category | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--------------------------------- | :------------------- | :------------------- | :------------- | | Brokerage Commissions | 234,599 | 299,589 | -21.7% | | Margin Financing Interest Income | 201,770 | 132,300 | 52.5% | | Spot Gold Trading Income | 3,200 | 3,509 | -8.8% | | Leveraged Foreign Exchange Trading Income | 425 | 605 | -29.8% | | IPO Financing Interest Income | 22 | 236 | -90.7% | | **Total Revenue** | **440,016** | **436,239** | **0.9%** | [Other Income](index=12&type=section&id=1.3.5%20Other%20Income) Other Income Details (For the six months ended September 30) | Income Category | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :-------------------------------------------- | :------------------- | :------------------- | :------------- | | Interest Income calculated using effective interest method | 147,056 | 46,745 | 214.6% | | Interest Income calculated using other methods | 19,960 | 19,082 | 4.6% | | Handling and Clearing Fees | 37,360 | 43,114 | -13.3% | | Dividend Income | 1,860 | 2,075 | -10.4% | | Government Grants | — | 2,615 | -100.0% | | Miscellaneous Income | 5,879 | 6,784 | -13.3% | | **Total** | **212,115** | **120,415** | **76.1%** | [Other Net Losses](index=13&type=section&id=1.3.6%20Other%20Net%20Losses) Other Net Losses Details (For the six months ended September 30) | Loss Category | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :---------------------------------------------- | :------------------- | :------------------- | :------------- | | Realized/Unrealized Losses on Financial Assets at FVTPL | (8,531) | (15,819) | -46.0% | | Net Foreign Exchange Losses | (7,350) | (14,165) | -48.1% | | Loss on Disposal of Property, Plant and Equipment | (9) | (67) | -86.6% | | Error Trades | (20) | (13) | 53.8% | | Others | 23 | (658) | -103.5% | | **Total** | **(15,887)** | **(30,722)** | **-48.3%** | [Profit Before Tax](index=14&type=section&id=1.3.7%20Profit%20Before%20Tax) Finance Costs and Other Operating Expenses (For the six months ended September 30) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :---------------------------------------- | :------------------- | :------------------- | :------------- | | Finance Costs | 122,179 | 45,430 | 168.9% | | Other Operating Expenses | 83,981 | 103,401 | -18.8% | | - Advertising and Promotion Expenses | 5,983 | 7,233 | -17.3% | | - Brokerage Commissions, Handling and Clearing Fees | 38,911 | 51,948 | -25.1% | | - Information and Communication Expenses | 19,527 | 23,122 | -15.5% | [Income Tax](index=15&type=section&id=1.3.8%20Income%20Tax) Income Tax Expense (For the six months ended September 30) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :---------------------------- | :------------------- | :------------------- | :------------- | | Total Tax Expense for the Period | 27,206 | 31,102 | -12.5% | | Provision for Hong Kong Profits Tax | 29,268 | 33,051 | -11.5% | | Deferred Tax | (2,062) | (1,949) | 5.8% | [Earnings Per Share](index=16&type=section&id=1.3.9%20Earnings%20Per%20Share) Earnings Per Share (For the six months ended September 30) | Indicator | 2023 (cents) | 2022 (cents) | | :------------------- | :----------- | :----------- | | Basic Earnings Per Share | 17.89 | 13.61 | | Diluted Earnings Per Share | 17.89 | 13.61 | - There were no dilutive potential ordinary shares during the period, thus diluted earnings per share were the same as basic earnings per share[95](index=95&type=chunk) [Dividends](index=16&type=section&id=1.3.10%20Dividends) - The Board did not recommend the payment of an interim dividend for the six months ended September 30, 2023 (2022: nil)[96](index=96&type=chunk) [Accounts Receivable](index=17&type=section&id=1.3.11%20Accounts%20Receivable) Accounts Receivable Details (As of September 30) | Accounts Receivable Category | 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | | :-------------------------------- | :------------------- | :----------------------------- | | Receivables from Clearing Houses, Brokers and Dealers | 1,489,309 | 1,123,268 | | Receivables from Cash Clients | 381,121 | 382,430 | | Receivables from Margin Clients | 5,531,798 | 5,466,015 | | Receivables from IPO New Shares | 8,330 | — | | **Total** | **7,410,558** | **6,971,713** | - Receivables from cash clients are collateralized by a securities portfolio with a total market value of **HKD 1.81 billion** (March 31, 2023: HKD 2.18 billion), which management believes to be fully recoverable[71](index=71&type=chunk) - Margin loans from margin clients are repayable on demand, with insignificant overdue amounts, and are collateralized by securities with a total market value of **HKD 20.88 billion** (March 31, 2023: HKD 22.71 billion)[129](index=129&type=chunk) [Accounts Payable](index=19&type=section&id=1.3.12%20Accounts%20Payable) Accounts Payable Details (As of September 30) | Accounts Payable Category | 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | | :------------------------ | :------------------- | :----------------------------- | | Payables to Cash Clients | 261,283 | 447,948 | | Payables to Margin Clients | 936,234 | 892,294 | | Payables to Clearing Houses | 131,265 | 1,288 | | Payables to Brokers | 247,667 | 122,585 | | **Total** | **1,576,449** | **1,464,115** | - All accounts payable are expected to be settled within one year or are repayable on demand, with no aging analysis disclosed[102](index=102&type=chunk)[131](index=131&type=chunk) [Bank Loans](index=19&type=section&id=1.3.13%20Bank%20Loans) Bank Loans Details (As of September 30) | Loan Category | 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | | :--------------- | :------------------- | :----------------------------- | | Secured Loans | 4,106,000 | 3,465,000 | | Unsecured Loans | 1,075,000 | 944,000 | | **Total** | **5,181,000** | **4,409,000** | - All bank loans are repayable within one year, primarily secured by securities pledged by margin clients, with **HKD 4.106 billion** in utilized bank facilities and re-pledged collateral fair value of **HKD 7.287 billion**[75](index=75&type=chunk)[103](index=103&type=chunk) Management Discussion and Analysis [Market Review](index=20&type=section&id=2.1%20Market%20Review) Global economic challenges, including geopolitical tensions and high interest rates, led to a slow Hong Kong recovery, weak stock market performance, and a decline in IPO fundraising - Global economic recovery was hindered by US-China relations, geopolitical conflicts, and a high-interest rate environment, leading to a slower-than-expected recovery in Hong Kong's economy, with Q2 GDP growing **1.5%** year-on-year, significantly below market expectations[76](index=76&type=chunk) - The Hong Kong stock market remained sluggish, with average daily turnover shrinking and the IPO market performing poorly, as total fundraising in the first three quarters decreased by **15%** year-on-year, falling to eighth globally[136](index=136&type=chunk) - Hong Kong experienced significant talent outflow, impacting productivity and competitiveness across industries, with small and medium-sized brokerages facing closures; **26** securities firms ceased operations in the first three quarters[135](index=135&type=chunk)[137](index=137&type=chunk) [Operating Results](index=22&type=section&id=2.2%20Operating%20Results) Despite market challenges, the Group's revenue grew 0.9% and profit for the period increased 31.4%, primarily driven by margin financing interest income, alongside steady customer growth and platform optimization [Overall Performance](index=22&type=section&id=2.2.1%20Overall%20Performance) Overall Financial Performance for the Period (For the six months ended September 30) | Indicator | 2023 (HKD millions) | 2022 (HKD millions) | YoY Change (%) | | :---------------------------------------- | :------------------ | :------------------ | :------------- | | Revenue | 440.0 | 436.2 | 0.9% | | Profit for the Period | 303.6 | 231.1 | 31.4% | | Total Comprehensive Income Attributable to Equity Holders | 303.3 | 231.5 | 31.0% | - The Group achieved strong results despite challenging market conditions, primarily due to long-term customer support and continuous optimization of its trading platform and product services[137](index=137&type=chunk) [Customer Accounts and Assets](index=23&type=section&id=2.2.2%20Customer%20Accounts%20and%20Assets) Customer Accounts and Assets Data (As of September 30) | Indicator | 2023 | 2022 | Increase (%) | | :-------------------- | :------ | :------ | :----------- | | Total Customer Accounts | 555,568 | 547,742 | 1.4% | | Customer Assets (HKD billions) | 533 | 530 | 0.6% | - The Group actively expanded, implemented seven-day operations, integrated online and offline services, and offered 24-hour account opening, deposits, and trading functions via two major mobile applications, successfully attracting customers and maintaining steady growth[111](index=111&type=chunk) [Revenue Analysis by Business Segment](index=24&type=section&id=2.2.3%20Revenue%20Analysis%20by%20Business%20Segment) Revenue by Business Segment (For the six months ended September 30) | Business Segment | 2023 (HKD thousands) | Share of Total Revenue | 2022 (HKD thousands) | Share of Total Revenue | Increase / (Decrease) (%) | | :--------------------------------- | :------------------- | :--------------------- | :------------------- | :--------------------- | :------------------------ | | Securities Brokerage | 123,612 | 28.1% | 166,273 | 38.1% | (25.7%) | | Hong Kong Futures and Options Brokerage | 61,911 | 14.1% | 63,969 | 14.7% | (3.2%) | | Global Futures Brokerage | 42,636 | 9.7% | 60,104 | 13.8% | (29.1%) | | Precious Metals Trading | 3,200 | 0.7% | 3,509 | 0.8% | (8.8%) | | Leveraged Foreign Exchange Trading | 425 | 0.1% | 605 | 0.1% | (29.8%) | | Stock Options Brokerage | 6,252 | 1.4% | 7,147 | 1.6% | (12.5%) | | IPO Brokerage | 188 | 0.0% | 2,096 | 0.5% | (91.0%) | | IPO Financing Interest Income | 22 | 0.0% | 236 | 0.1% | (90.7%) | | Margin Financing Interest Income | 201,770 | 45.9% | 132,300 | 30.3% | 52.5% | | **Total** | **440,016** | **100.0%** | **436,239** | **100.0%** | **0.9%** | - Margin financing interest income significantly increased by **52.5%** to **HKD 201.8 million**, driven by rising HIBOR, becoming the primary contributor to revenue for the period[145](index=145&type=chunk) - Securities brokerage commission income decreased by **25.7%** to **HKD 123.6 million** due to sluggish Hong Kong stock market turnover; IPO-related business revenue significantly declined by over **90%** due to market contraction[112](index=112&type=chunk)[145](index=145&type=chunk) [Operating Expenses and Net Profit Margin](index=26&type=section&id=2.2.4%20Operating%20Expenses%20and%20Net%20Profit%20Margin) Operating Expenses Details (For the six months ended September 30) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | Increase / (Decrease) (%) | | :---------------------------------------- | :------------------- | :------------------- | :------------------------ | | Staff Costs | 63,388 | 76,235 | (16.9%) | | Amortization and Depreciation | 34,834 | 37,531 | (7.2%) | | Net Expected Credit Losses | 1,029 | 1,149 | (10.4%) | | Finance Costs | 122,179 | 45,430 | 168.9% | | Advertising and Promotion Expenses | 5,983 | 7,233 | (17.3%) | | Auditor's Remuneration | 726 | 800 | (9.3%) | | Brokerage Commissions, Handling and Clearing Fees | 38,911 | 51,948 | (25.1%) | | Information and Communication Expenses | 19,527 | 23,122 | (15.5%) | | Rent, Rates and Building Management Fees | 2,972 | 2,265 | 31.2% | | Legal and Professional Fees | 906 | 856 | 5.8% | | Miscellaneous Expenses | 14,956 | 17,177 | (12.9%) | | **Total** | **305,411** | **263,746** | **15.8%** | - Operating expenses for the period increased by **15.8%** year-on-year to **HKD 305.4 million**, primarily due to a **168.9%** surge in finance costs, although staff costs, advertising, brokerage commissions, and information and communication expenses all decreased[118](index=118&type=chunk)[119](index=119&type=chunk) - The Group's net profit margin increased to **69.0%** (2022: 53.0%), indicating improved profitability[118](index=118&type=chunk) [Proprietary Investment Performance](index=25&type=section&id=2.2.5%20Proprietary%20Investment%20Performance) - As of September 30, 2023, the Group held an investment portfolio of Hong Kong listed securities, bonds, and futures contracts totaling **HKD 58.6 million**, recording an investment loss of **HKD 8.5 million** for the period (2022: HKD 15.8 million loss)[146](index=146&type=chunk) [Future Plans](index=27&type=section&id=2.3%20Future%20Plans) The Group plans to address future market challenges by investing in FinTech, enhancing platform security, diversifying global products, and strengthening investor education to boost competitiveness [Strategic Focus and Market Expansion](index=27&type=section&id=2.3.1%20Strategic%20Focus%20and%20Market%20Expansion) - The Group anticipates that the aftermath of US interest rate hikes, geopolitical issues, RMB exchange rates, and mainland China's property market will continue to impact Hong Kong's economy, emphasizing the need for Hong Kong to strive for self-improvement and rebuild confidence in its stock market[120](index=120&type=chunk) - The Group will continue its "people-oriented" approach, strengthen core FinTech, fully develop integrated online and offline investment services, and continuously seek prime locations to open new branches and expand its sales network[2](index=2&type=chunk)[120](index=120&type=chunk)[152](index=152&type=chunk) - The Group will continue to hold recruitment days to attract elite talent, aiming to enhance service quality and cultivate the next generation of industry professionals[2](index=2&type=chunk) [Technology Enhancement and Security](index=27&type=section&id=2.3.2%20Technology%20Enhancement%20and%20Security) - As a FinTech pioneer, the Group invests significant resources annually to expand online trading channels, independently develops trading systems with emergency anti-disconnection features, and offers Hong Kong's first automatic connection service for four major trading systems[167](index=167&type=chunk) - The Group is committed to enhancing online trading security by relocating its central computer equipment to HKEX's central machine room, regularly conducting high-load simulation tests, and implementing "two-factor authentication" security measures[151](index=151&type=chunk) - The Group's computer systems automatically send real-time emails or app push notifications to alert clients about account and transaction activities, while also closely monitoring fraudulent websites and taking legal action against them[124](index=124&type=chunk) [Product Diversification and Investor Education](index=28&type=section&id=2.3.3%20Product%20Diversification%20and%20Investor%20Education) - The Group continuously innovates, offering diversified global financial products including Hong Kong stocks, US stocks, Shanghai-Shenzhen-Hong Kong Stock Connect A-shares, Japanese stocks, Taiwanese stocks, Singaporean stocks, Australian stocks, UK stocks, and various futures products[3](index=3&type=chunk)[149](index=149&type=chunk) - To meet growing investor interest in US stocks, the "Bright Smart Baby APP" added a "US Stock Pre-market Trading" function, and launched a "One Account, Five Futures" service, allowing trading of Hong Kong futures products with **20%** margin[3](index=3&type=chunk)[169](index=169&type=chunk) - The Group collaborated with a renowned Hong Kong bank to launch the HKMA-approved "24-hour (eDDA) Direct Debit Service," enabling round-the-clock deposits and global stock and futures trading[169](index=169&type=chunk) - The Group undertakes the important task of investor education, establishing the "Bright Smart Finance Channel" live broadcast, and actively organizing free investment seminars and simulated competitions to popularize financial knowledge[121](index=121&type=chunk) [Overall Strategy and Outlook](index=30&type=section&id=2.3.4%20Overall%20Strategy%20and%20Outlook) - The Group aims to promote the digitalization and intelligence of client trading services, combining online and offline marketing strategies to reduce costs, increase efficiency, expand client base, enhance client experience, and solidify its industry leadership[170](index=170&type=chunk) - Adhering to the philosophy of "customer-centric, service first," the Group maintains its market positioning of "affordable, high-quality, efficient, and fast," adopting a balanced offensive and defensive strategy, continuously optimizing platform performance, and strengthening promotional efforts[152](index=152&type=chunk) Financial Management [Capital Management](index=32&type=section&id=3.1%20Capital%20Management) The Group maintains ample liquidity and manages its capital structure, ensuring compliance, despite decreased net current assets and increased bank borrowings, with sufficient unutilized bank facilities - The Group maintains ample liquidity, with bank deposits, bank balances, and cash totaling **HKD 400.9 million** as of September 30, 2023 (March 31, 2023: HKD 504.5 million)[7](index=7&type=chunk) - The Group's total bank borrowings amounted to **HKD 5.181 billion** (March 31, 2023: HKD 4.409 billion), primarily bearing interest at floating rates and secured by securities pledged by margin clients[7](index=7&type=chunk) - Unutilized bank facilities amounted to **HKD 16.456 billion** (March 31, 2023: HKD 17.637 billion), with net current assets decreasing by **34.3%** to **HKD 1.0534 billion**, and a current ratio of **1.2 times**[7](index=7&type=chunk) - The Company provided corporate guarantees of **HKD 16.4851 billion** for subsidiaries engaged in securities and futures brokerage businesses, of which **HKD 3.805 billion** has been utilized[174](index=174&type=chunk) - As of September 30, 2023, and March 31, 2023, the Group's assets were not subject to any charges[8](index=8&type=chunk)[154](index=154&type=chunk) [Risk Management](index=33&type=section&id=3.2%20Risk%20Management) The Group employs comprehensive risk management policies, including credit, liquidity, interest rate, foreign currency, and price risks, through strict assessment and monitoring [Credit Risk](index=33&type=section&id=3.2.1%20Credit%20Risk) - Credit risk primarily arises from receivables from clients, brokers, and clearing houses, with management establishing and continuously monitoring credit policies[156](index=156&type=chunk) - All clients undergo individual credit assessments; cash clients are required to deposit margins, and margin clients must pledge securities collateral, with management daily monitoring market conditions and collateral adequacy[10](index=10&type=chunk) - The Group transacts with reputable brokers and clearing houses, resulting in very low credit risk and no significant concentration of credit risk[157](index=157&type=chunk)[175](index=175&type=chunk) [Liquidity Risk](index=34&type=section&id=3.2.2%20Liquidity%20Risk) - The Group regularly monitors liquidity needs, complies with borrowing covenants, and ensures sufficient cash reserves and committed credit facilities to meet both short-term and long-term liquidity requirements[12](index=12&type=chunk) [Interest Rate Risk](index=34&type=section&id=3.2.3%20Interest%20Rate%20Risk) - The Group faces floating interest rate risk primarily from margin loans, bank deposits, and bank borrowings, mitigating this risk by continuously monitoring market interest rate changes and adjusting client interest rates[159](index=159&type=chunk) [Foreign Currency Risk](index=34&type=section&id=3.2.4%20Foreign%20Currency%20Risk) - The Group is exposed to currency risk from financial instruments denominated in USD, RMB, AUD, SGD, JPY, and GBP, but the risk is minor due to the HKD's peg to the USD[178](index=178&type=chunk) - Management daily monitors all foreign currency positions and, when necessary, buys or sells foreign currencies at spot rates to address short-term imbalances[178](index=178&type=chunk) [Price Risk](index=34&type=section&id=3.2.5%20Price%20Risk) - The Group is exposed to price risk from changes in the fair value of financial assets at FVTPL (listed equity investments and futures contracts), as well as price risk from changes in the fair value of collateral for receivables from margin, cash, and IPO clients[14](index=14&type=chunk)[15](index=15&type=chunk)[160](index=160&type=chunk)[179](index=179&type=chunk) Corporate Governance and Other Information [Employees and Remuneration Policy](index=35&type=section&id=4.1%20Employees%20and%20Remuneration%20Policy) As of September 30, 2023, the Group had 198 employees and offers competitive remuneration, bonus schemes, and training to attract and retain talent Number of Employees | Date | Number of Employees | | :------------ | :------------------ | | Sep 30, 2023 | 198 | | Mar 31, 2023 | 206 | - The Group's remuneration policy aims to provide competitive compensation and benefits to recruit, retain, and motivate capable employees, including bonus schemes and appropriate training and development[162](index=162&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=35&type=section&id=4.2%20Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[181](index=181&type=chunk) [Compliance with Corporate Governance Code and Standard Code for Securities Transactions by Directors](index=35&type=section&id=4.3%20Compliance%20with%20Corporate%20Governance%20Code%20and%20Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company fully complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors of Listed Issuers during the period - The Company has fully complied with the Code Provisions of the Corporate Governance Code and Corporate Governance Report set out in Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[17](index=17&type=chunk) - All Directors fully complied with the required standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers during the period[164](index=164&type=chunk) [Publication and Review of Interim Financial Information](index=36&type=section&id=4.4%20Publication%20and%20Review%20of%20Interim%20Financial%20Information) The interim results announcement is published online, with the report to be dispatched to shareholders, and the Audit Committee reviewed the unaudited consolidated results with KPMG - This results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the Company, and the interim report will be dispatched to shareholders in due course[19](index=19&type=chunk)[165](index=165&type=chunk) - The Company's Audit Committee has reviewed the Group's unaudited consolidated results and financial reporting matters of the interim report for the six months ended September 30, 2023, with the external auditor, KPMG[21](index=21&type=chunk)[183](index=183&type=chunk)

加強網上交易安全度 本集團投放大量資源提高網上交易系統處理交易的效率及容量，以滿足客戶 需要。為使網上交易平台更快捷穩定，本集團早前已耗資巨額提升交易系統， 更將電腦中樞設備系統遷往位於將軍澳的港交所中央機樓，並會為所有交易 系統進行大規模測試，包括定期進行比現時港交所高峰期交易量高五倍的模 擬測試，以持續優化現有的證券及期貨交易平台的效率與穩健程度。 網絡技術和移動通信技術已是生活上不可缺少的一部份，互聯網金融迅猛發展， 網上交易安全的問題亦隨之而生。投資者對風險的警覺性愈來愈高，愈來愈重 視網上交易的安全。本集團深明網上交易安全是投資者的首要關注，故一直致 力確保交易的穩健與安全。本集團成功自行研發緊急防斷系統，特設四款交易 平台供買賣全球股票，任君選擇，包括：耀才證券（寶寶）APP、耀才證券(MH) APP、電腦（網頁版）以及電腦（專業版），各大平台既能互相支援，亦可防斷互 – 29 – 補，為客戶提供四重保障。此外，本集團特設3大期貨同2大槓桿式外匯交易平 台，可買賣全球期貨同槓桿式外匯產品，各大平台同時防斷互補，九重保障， 大幅提高安全性。 利率風險 – 33 – 本集團承受的外匯風險主要源自以美元 ...

Economic Overview - In the first half of 2022, the number of visitors to Hong Kong was only 76,000, representing a 125% increase compared to the previous year, but less than 1% of the pre-pandemic level of almost 35 million visitors in the first half of 2019[12]. - Total retail sales in the first seven months of 2022 decreased by 1.7% compared to the same period last year[12]. - Hong Kong's GDP fell year-on-year by 3.9% in the first quarter and by 1.3% in the second quarter, with the actual GDP growth rate for the year expected to be adjusted downward to between -0.5% and 0.5%[12]. - The consumer price index in September 2022 rose by 4.4% year-on-year, higher than the increase of 1.9% in August[12]. - Excluding one-off government bailouts, the basic inflation rate in September would return to 1.8%[12]. - The Federal Reserve increased interest rates by a total of 3% from January to September 2022, leading to banks in Hong Kong raising the prime rate[12]. - Residential property prices in Hong Kong faced declines due to interest rate hikes and a wave of migration[12]. Financial Performance - For the six months ended September 30, 2022, the Group recorded revenue of HK$436.2 million, a year-on-year decrease of 23.0% from HK$566.5 million[21]. - Profit for the Period was HK$231.1 million, reflecting a decline of 21.6% compared to HK$294.9 million in the previous year[21]. - The average daily turnover for Hong Kong stocks during the Period was approximately HK$113.01 billion, a decrease of approximately 28.7% from HK$158.54 billion in the same period last year[21]. - The Group's total comprehensive income attributable to equity shareholders amounted to HK$231.5 million, a decline of 21.5% from HK$294.8 million in the previous year[21]. - The board of directors does not recommend the payment of any interim dividend for the Period, consistent with the previous year[21]. - The Group recorded revenue of HK$436.2 million, a year-on-year drop of 23.0% from HK$566.5 million[27]. - Commission income from securities brokerage was HK$166.3 million, a decrease of 28.9% year-on-year, accounting for 38.1% of total revenue[28][29]. - Commission income from Hong Kong futures and options brokerage increased by 9.9% to HK$64.0 million, accounting for 14.7% of total revenue[30][31]. - Global futures brokerage commission income rose by 74.1% to HK$60.1 million, representing 13.8% of total revenue[32][35]. - IPO brokerage commission income decreased by 82.5% to HK$2.1 million, with interest income from IPO financing down 99.4% to HK$236,000[33][36]. - Average daily margin borrowings decreased by 36.7% to HK$6.84 billion, with interest income from margin financing at HK$132.3 million, a decrease of 25.6%[34]. - The Group's investment losses from financial assets at fair value through profit or loss were HK$15.8 million, an improvement from a loss of HK$21.6 million in the previous year[39]. - Operating expenses decreased by 15.8% year-on-year to HK$263.7 million, while the net profit margin slightly increased to 53.0% from 52.1%[40]. - Staff costs decreased by 1.3% to HK$76.2 million, while finance costs saw a significant reduction of 44.2% to HK$45.4 million[42]. Client and Market Activity - The number of companies listed in Hong Kong for financing in the first half of the year decreased by 48% year-on-year to 24, with financing amount dropping 92% to HK$17.8 billion[15]. - The Hang Seng Index dropped approximately 50% from its high to low since 2021, hitting a 13-year low below 15,000 points[15]. - The total number of client accounts increased to 538,629, representing a growth of 5.4% from 510,957 as of September 30, 2021, with 27,672 new accounts opened during the period[24][25]. - Client assets decreased by 22.6% to approximately HK$53.0 billion as of September 30, 2022, down from approximately HK$68.5 billion as of September 30, 2021[24][25]. - The average daily trading volume during the period was approximately HK$113.01 billion, a decrease of about 28.7% compared to HK$158.54 billion in the same period last year[23]. Strategic Initiatives - The Group invested heavily in the research and development of one-stop mobile trading apps, BS Securities and BS Futures, anticipating a rapid increase in investor demand for financial technology[21]. - The Group maintained services of physical stores across Hong Kong Island, Kowloon, and New Territories, providing all-round, one-stop, and 24-hour services to investors[17]. - The Group's strategies were adjusted in response to changes in market conditions, aiming to retain customers with high-quality service despite adverse market conditions[17]. - The Group plans to enhance its online trading systems and improve the speed of order placement through regular updates to its trading apps[46]. - The Group aims to expand its branch network by identifying prime locations with high pedestrian traffic, currently operating 14 outlets[46]. - Future strategies include attracting talents, technology, and capital to strengthen the Group's position in the securities industry[43]. - The Group emphasizes the importance of stable and reliable trading channels to avoid disruptions during trading[46]. - The Group is committed to nurturing the next generation of industry elites through regular job fairs, regardless of market conditions[46]. - The Group launched a live streaming channel "Bright Smart Finance Channel" to provide real-time financial information and investor education[49]. - The Group's online trading platforms connect to global markets, offering a wide range of financial products including Hong Kong stocks, US stocks, and various futures[53]. - The Group introduced a "one for five" futures account, allowing investors to trade with a margin of 20%, which has gained popularity since its launch in June[53]. - Significant investments were made in developing two mobile trading apps, BS Securities (Baobao) and BS Futures (Doudou), equipped with AI 3.0 features[55]. - The Baobao app now includes premarket trading for US stocks, allowing clients to trade before 4 PM Hong Kong time[55]. - The Group won seven awards from HKEX, including five "Top Broker" awards, reflecting its strong market position and service quality[58]. - The Group's mobile apps received recognition as "Outstanding One-Stop Mobile Application for Securities and Futures Trading" by industry organizations[58]. - The Group is committed to enhancing financial literacy among the public through various educational initiatives and partnerships with renowned financial institutions[49]. - The introduction of the "24-hour Electronic Direct Debit Authorisation (eDDA) Service" allows clients to deposit and trade anytime, breaking traditional industry constraints[55]. - The Group's efforts in fintech and service upgrades have significantly boosted client confidence and brand reputation in the market[58]. Financial Position and Liquidity - As of September 30, 2022, the Group maintained a strong cash position with total bank deposits, bank balances, and cash amounting to HK$570.7 million, an increase from HK$524.7 million as of March 31, 2022[71]. - The Group's total bank borrowings decreased to HK$4,255.0 million as of September 30, 2022, down from HK$5,162.2 million as of March 31, 2022, resulting in a gearing ratio of 168.0%[71]. - The net current assets of the Group increased by 3.8% to HK$2,384.2 million as of September 30, 2022, compared to HK$2,296.3 million as of March 31, 2022[71]. - The Group's current ratio improved to 1.4 times as of September 30, 2022, compared to 1.3 times as of March 31, 2022[71]. - The Group's unutilized banking facilities amounted to HK$17,825.1 million as of September 30, 2022, compared to HK$16,048.8 million as of March 31, 2022[71]. - The Group's asset-liability ratio was 168.0% as of September 30, 2022, down from 208.9% as of March 31, 2022[74]. - The Group's liquidity position is strong, with unused bank financing of HK$17,825.1 million as of September 30, 2022, compared to HK$16,048.8 million as of March 31, 2022[74]. - Corporate guarantees provided by the Company for banking facilities to subsidiaries amounted to HK$16,492.8 million as of September 30, 2022, up from HK$15,724.5 million as of March 31, 2022[79]. - As of September 30, 2022, the subsidiaries utilized HK$3,525.0 million of the aggregate banking facilities, down from HK$4,063.7 million as of March 31, 2022[81]. - The Group maintains a policy of regular monitoring of liquidity requirements and compliance with loan covenants to ensure sufficient cash reserves[86]. Risk Management - The Group actively manages foreign currency risk by monitoring positions daily and addressing short-term imbalances as necessary[93]. - The Group's interest-bearing assets and liabilities are primarily priced based on floating rates, mainly linked to HIBOR[90]. - The Group is exposed to price risk from listed equity investments and futures contracts classified as financial assets at fair value through profit or loss[95]. - The fair value of accounts receivable from margin, cash, and IPO clients is referenced against the fair value of collaterals, exposing the Group to price risk[96]. - The Group manages foreign currency risk primarily from financial instruments denominated in USD, RMB, AUD, SGD, JPY, and GBP, with daily monitoring of foreign currency positions[94]. Corporate Governance - The company has fully complied with the Corporate Governance Code during the reporting period[113]. - The company confirmed that all directors complied with the Model Code for Securities Transactions during the period[115]. - The interim financial report has been reviewed by KPMG, confirming compliance with the relevant accounting standards[140]. - The Audit Committee, along with external auditor KPMG, reviewed the financial reporting processes and internal control procedures for the six months ended September 30, 2022[111]. Employee and Workforce - The Group's workforce decreased to 217 employees as of September 30, 2022, from 262 employees as of March 31, 2022[93]. - The Group's remuneration policy aims to provide competitive compensation to attract and retain talented employees, including a bonus plan for executives[99].

Corporate Achievements - The Group was invited by NASDAQ to appear on the huge screen in Times Square, New York, becoming the first Hong Kong-funded securities company to achieve this milestone[10]. - The Group sponsored the Bright Smart Securities Hong Kong Squash Championships 2021, the largest squash competition in Hong Kong, to support the sustainable development of the sports industry[12]. - The Group was awarded the Gold Prize under the ESG Rising Star and Silver Prize under Special Awards at the ESG Achievement Awards 2020, affirming its commitment to sustainable development[13]. - BS Securities (Baobao) and BS Futures (Doudou) were recognized as "Excellent Securities and Futures Trading Apps" at the Elite Enterprise Awards, highlighting the Group's innovation in financial technology[14]. - The Group was awarded the Top 20 Partner for trading over one billion CME Group Micro Contracts by the Chicago Mercantile Exchange, demonstrating its strong industry presence[17]. - The Group was granted the Most Popular Brokerage Brand Award by TVB Weekly, reflecting its reputation for professional and reliable services[22]. - The Group won seven awards at the HKEX Awards 2021/2022, marking a historical high and recognition for contributions to Hong Kong's investment markets[28]. - Awards included Top Broker in various categories such as Equity Index Futures & Options and Stock Futures & Options, highlighting the Group's market leadership[38]. - The Group received multiple awards, including "Most Active Stock Futures Broker" and "Outstanding Social Caring Organisation Award," highlighting its industry recognition[71][75]. Employee Engagement and Social Responsibility - The Group provided preferential treatment to all employees, allowing them to subscribe to five lots of iBond 2021 without deposit and interest fees, recognizing their hard work[11]. - The Group distributed bonuses to all employees, with outstanding employees receiving bonuses up to 37 months, and organized a trip to Disneyland for staff[22]. - The Group's performance remained strong despite challenges, with notable contributions from employees recognized through bonuses and rewards[23]. - The Yip Mow Lum Charity Fund donated HK$10 million to the Hospital Authority in 2022, totaling HK$30 million over three years to support COVID-19 efforts[25]. - The Group's commitment to social responsibility was recognized with multiple awards, including the ESG Achievement Awards[38]. - The Group has been actively involved in charitable activities, donating a total of HK$30 million to the Hospital Authority over three years to support medical workers[75][77]. Market Performance and Economic Outlook - Revenue for the year ended March 31, 2022, was HK$1,068.0 million, a decrease of 16.9% from HK$1,285.2 million in 2021[43]. - Profit for the year was HK$561.5 million, down 20.2% from HK$703.9 million in the previous year[44]. - Basic earnings per share decreased to HK$33.08 from HK$41.47, reflecting a decline of 20.2%[43]. - The final dividend per share was reduced to HK$10.00 from HK$13.00, a decrease of 23.1%[43]. - The economic growth forecast for Hong Kong in 2022 was revised down to 2%-3.5% due to pandemic uncertainties, compared to an expected growth of 6.4% in 2021[45]. - The total number of confirmed COVID-19 cases in Hong Kong exceeded 1.2 million, with over 9,200 deaths reported by the end of April 2022[45]. - The International Monetary Fund cut the global economic growth forecast for 2022 to 4.4%, citing risks from the pandemic resurgence[45]. - Supply chain disruptions in Mainland China have led to increased commodity prices and inflation, impacting economic outlook[48]. - Tensions in Sino-US relations and the ongoing Russia-Ukraine conflict are contributing to an unpredictable international economic environment[49]. - The company anticipates that the Mainland economy will remain robust, supported by fiscal and monetary policies despite global challenges[48]. Client Growth and Trading Activity - The total number of client accounts reached 526,849, reflecting a 9.2% increase from 482,413 accounts as of March 31, 2021[56]. - Client assets, including cash and stocks, decreased by 13.1% year on year to approximately HK$64.5 billion, down from approximately HK$74.2 billion[56]. - The number of downloads of the Baobao and Doudou apps rose by approximately 35% compared to the prior year[59]. - The number of accounts opened through Baobao and Doudou apps increased by approximately 20% compared to the prior year[59]. - The number of orders on the Baobao app was approximately 24 million, representing an increase of approximately 50% compared to the prior year[59]. - The total number of orders on all platforms exceeded 31 million, representing an increase of approximately 47.8% compared to the prior year[59]. - The average daily turnover for the fiscal year was approximately HK$147.50 billion, a decrease of 4.9% from HK$155.06 billion in the prior year[104]. - The total turnover of securities on HKEX for the year was HK$36,431.7 billion, a year-on-year decrease of 4.9%[114]. Financial Performance and Revenue Breakdown - Brokerage commission income fell by 13.0% year on year to HK$690.8 million, compared to HK$793.8 million in the previous year[55]. - Interest income from margin lending increased by 20.2% to HK$326.1 million, up from HK$271.2 million in the prior year[55]. - Commission income from the Group's securities brokerage business was HK$437.2 million, accounting for 40.9% of total revenue, a decrease of 15.5% from the previous year[114]. - Revenue from Hong Kong futures and options brokerage increased to HK$125.0 million, up 3.8% from HK$120.4 million in 2021, representing 11.7% of total revenue[118]. - Interest income from margin financing was HK$37.7 million, a significant decrease of 81.3% from HK$201.7 million in the previous year[112]. - Commission income from IPO brokerage decreased by 71.7% to HK$13.3 million, while interest income from IPO financing dropped by 81.3% to HK$37.7 million[130]. Technology and Innovation - The Group invested heavily in the research and development of mobile trading apps, BS Securities (Baobao) and BS Futures (Doudou), anticipating a rapid increase in investor demand for financial technology[104]. - The Group launched a new service for pre-market trading in U.S. stocks, allowing clients to trade earlier at 4 PM (summer) and 5 PM (winter) Hong Kong time[67]. - The Group is investing in digitalizing investment services with the development of two apps featuring AI 3.0 capabilities[150]. - The Group has developed new features for the Baobao and Doudou apps, including position gain/loss tracking, automatic odd lot selling, and a month-long trading record view[151]. - The Group has implemented a "dual password" security measure for online trading, enhancing client security and compliance with regulatory requirements[158]. - An anti-disruption system has been developed, featuring four trading platforms to ensure seamless trading of global stocks and futures[162]. - The Group's focus on fintech and software development aims to strengthen its core competitiveness and leadership in the industry[156]. Risk Management and Financial Health - The Group's credit risk from receivables is considered low due to individual evaluations based on collateral for all clients, including cash and margin clients[187]. - The Group regularly monitors its liquidity requirements and maintains sufficient cash reserves and committed lines of funding from major financial institutions[191]. - Interest charged on margin and cash clients is based on the cost of funding plus a mark-up, with financial assets primarily at floating rates, indicating minimal interest rate risk[194]. - The Group is exposed to currency risk primarily from financial instruments denominated in multiple currencies, but considers the risk between HKD and USD as insignificant[196]. - The management monitors all foreign currency positions daily to address short-term imbalances and maintain acceptable net exposure levels[200].

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides fundamental corporate information, including executive leadership, board committees, and key external partners like auditors and principal bankers [Corporate Executives and Partners](index=3&type=section&id=Corporate%20Executives%20and%20Partners) This section details the company's key corporate information, including board members, registered office, and principal business partners - The company's Chairman is Mr. Yip Mau Lam, and the Chief Executive Officer is Mr. Hui Yuk Bun[6](index=6&type=chunk) - The company's auditor is KPMG[9](index=9&type=chunk) - The company maintains business relationships with several major banks, including Bank of China (Hong Kong), Bank of Communications, Hang Seng Bank, and HSBC[9](index=9&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the market, operating performance, client growth, detailed revenue analysis, investment outcomes, operating expenses, and future strategic plans [Market Review](index=6&type=section&id=MARKET%20REVIEW) Hong Kong's economy recovered amid global improvements, with robust financial markets and significant IPO activity, despite challenges from inflation and geopolitical uncertainties - In the first three quarters of 2021, Hong Kong's total IPO fundraising reached **HK$285.9 billion**, a new high for the period, with full-year projections up to **HK$500 billion**[14](index=14&type=chunk) - As of June 2021, Hong Kong's stock market capitalization grew **39%** year-on-year to **HK$52.8 trillion**, primarily driven by the return of Chinese concept stocks[12](index=12&type=chunk) - In Q2 and Q3, Hong Kong's average daily stock trading volume stabilized at **HK$158.5 billion**, a year-on-year increase of approximately **24%**[14](index=14&type=chunk) - Tightening mainland regulatory policies and ongoing US-China tensions are identified as key uncertainties impacting future market trends[16](index=16&type=chunk)[18](index=18&type=chunk) [Operating Results](index=8&type=section&id=OPERATING%20RESULTS) For the six months ended September 30, 2021, the Group's revenue decreased by **2.8%** to **HK$567 million**, and profit for the period fell **14.8%** to **HK$295 million**, with increased investment in mobile trading applications Operating Results Summary | Metric | Six Months Ended September 30, 2021 | Six Months Ended September 30, 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Revenue** | HK$566.5 million | HK$582.9 million | -2.8% | | **Profit for the Period** | HK$294.9 million | HK$346.1 million | -14.8% | | **Basic Earnings Per Share** | 17.38 HK cents | 20.39 HK cents | -14.8% | | **Interim Dividend** | Not Distributed | Not Distributed | - | - The Group actively responded to market changes by increasing investment in FinTech, focusing on developing the 'Bright Smart Securities (Baobao)' and 'Bright Smart Futures (Doudou)' mobile applications, which successfully attracted hundreds of thousands of investors[23](index=23&type=chunk)[24](index=24&type=chunk) [Total Client Accounts and Assets](index=10&type=section&id=TOTAL%20CLIENT%20ACCOUNTS%20AND%20ASSETS) As of September 30, 2021, the Group's client base expanded, with total client accounts growing **25.9%** year-on-year to approximately **510,000** and total client assets increasing **27.8%** to approximately **HK$68.5 billion**, indicating strong growth in client acquisition and asset management Client Accounts and Assets Summary | Metric | September 30, 2021 | September 30, 2020 | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | **Total Client Accounts** | 510,957 | 405,761 | +25.9% | | **Client Assets** | Approx. HK$68.5 billion | Approx. HK$53.6 billion | +27.8% | - During the reporting period, the Group opened **28,544** new accounts (net of closed accounts)[25](index=25&type=chunk)[26](index=26&type=chunk) [Revenue Analysis](index=11&type=section&id=REVENUE) Total revenue for the period was **HK$567 million**, a slight **2.8%** year-on-year decrease, driven by growth in securities brokerage (**+6.4%**) and margin financing interest income (**+55.9%**), while futures brokerage and IPO-related revenues significantly declined [Revenue Breakdown](index=11&type=section&id=Revenue%20Breakdown) The Group's total revenue decreased by **2.8%** year-on-year, with securities brokerage and margin financing interest income as primary sources, while IPO-related brokerage and financing interest income significantly declined by **44.1%** and **60.9%** respectively Revenue Composition | Revenue Source | 2021 H1 (HK$ '000) | Proportion | 2020 H1 (HK$ '000) | Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Securities Brokerage | 233,969 | 41.3% | 219,990 | 37.7% | +6.4% | | Hong Kong Futures and Options Brokerage | 58,220 | 10.3% | 62,460 | 10.7% | -6.8% | | Global Futures Brokerage | 34,525 | 6.1% | 53,754 | 9.2% | -35.8% | | IPO Brokerage | 11,972 | 2.1% | 21,416 | 3.7% | -44.1% | | IPO Financing Interest | 37,290 | 6.6% | 95,321 | 16.4% | -60.9% | | Margin Financing Interest Income | 177,908 | 31.4% | 114,092 | 19.6% | +55.9% | | **Total** | **566,523** | **100.0%** | **582,891** | **100.0%** | **-2.8%** | [Securities Brokerage](index=12&type=section&id=I.%20Securities%20brokerage) Benefiting from a **22.8%** year-on-year increase in Hong Kong's overall stock market turnover, the Group's securities brokerage commission income grew steadily by **6.4%** to **HK$234 million**, increasing its proportion of total revenue to **41.3%** - Securities brokerage commission income was **HK$234 million**, a year-on-year increase of **6.4%**[31](index=31&type=chunk)[32](index=32&type=chunk) [Hong Kong Futures and Options Brokerage](index=13&type=section&id=II.%20Hong%20Kong%20futures%20and%20options%20brokerage) Due to a contraction in Hong Kong's futures market, with a **14.5%** year-on-year decrease in HKEX derivatives contract turnover, the Group's Hong Kong futures and options brokerage commission income fell **6.8%** to **HK$58.2 million** - Hong Kong futures and options brokerage commission income was **HK$58.2 million**, a year-on-year decrease of **6.8%**[34](index=34&type=chunk)[35](index=35&type=chunk) [Global Futures Brokerage](index=13&type=section&id=III.%20Global%20futures%20brokerage) Global futures brokerage commission income significantly declined by **35.8%** year-on-year to **HK$34.5 million**, with its proportion of total revenue decreasing from **9.2%** to **6.1%** - Global futures brokerage commission income was **HK$34.5 million**, a year-on-year decrease of **35.8%**[36](index=36&type=chunk)[37](index=37&type=chunk) [IPO Brokerage and Financing](index=14&type=section&id=VII.%20IPO%20brokerage%20and%20IPO%20financing) IPO market-related business revenue significantly contracted, with IPO brokerage commission income falling **44.1%** to **HK$12 million** and IPO financing interest income sharply decreasing **60.9%** to **HK$37.3 million** - IPO brokerage commission income decreased by **44.1%** year-on-year to **HK$12 million**[41](index=41&type=chunk)[45](index=45&type=chunk) - IPO financing interest income decreased by **60.9%** year-on-year to **HK$37.3 million**[41](index=41&type=chunk)[45](index=45&type=chunk) [Margin Financing](index=15&type=section&id=VIII.%20Margin%20financing) Margin financing business performed strongly, becoming a key revenue growth driver, with average daily margin loans surging **74.5%** to **HK$10.8 billion**, boosting related interest income by **55.9%** to **HK$178 million** - Margin financing interest income was **HK$177.9 million**, a year-on-year increase of **55.9%**[46](index=46&type=chunk)[48](index=48&type=chunk) - Average daily margin loans increased by **74.5%** year-on-year to **HK$10.8 billion**[46](index=46&type=chunk)[48](index=48&type=chunk) [Investment Loss](index=15&type=section&id=INVESTMENT%20LOSS) During the reporting period, the Group recorded an investment loss of **HK$21.6 million** from financial assets, compared to a **HK$7.2 million** gain in the prior period, with a period-end book value of **HK$60.3 million** for investments - Investment loss from financial assets at fair value through profit or loss (including realized and unrealized losses) was **HK$21.6 million**, compared to a **HK$7.2 million** gain in the prior period[47](index=47&type=chunk)[49](index=49&type=chunk) [Operating Expenses and Net Profit Margin](index=15&type=section&id=OPERATING%20EXPENSES%20AND%20NET%20PROFIT%20MARGIN) Operating expenses decreased by **4.9%** to **HK$313 million**, primarily due to reduced finance costs and advertising, but the net profit margin declined from **59.4%** to **52.1%** due to lower revenue and investment losses Operating Expenses and Net Profit Margin Summary | Metric | 2021 H1 | 2020 H1 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Expenses** | HK$313.4 million | HK$329.6 million | -4.9% | | **Net Profit Margin** | 52.1% | 59.4% | -7.3 percentage points | - The decrease in expenses was primarily due to reductions in finance costs (**-17.8%**), advertising and promotion expenses (**-28.2%**), and information and communication fees (**-12.3%**), partially offset by increases in staff costs (**+20.3%**) and miscellaneous expenses (**+23.0%**)[53](index=53&type=chunk) [Future Plans](index=17&type=section&id=FUTURE%20PLANS) The Group plans an aggressive development strategy, focusing on optimizing digital services, diversifying global financial products, expanding client base through enhanced marketing, and strengthening transaction system security and investor education - Strategic focus includes aligning with China-Hong Kong policies (e.g., Greater Bay Area plan), adopting an aggressive development strategy, and innovating products, services, and market offers to expand the client base[56](index=56&type=chunk)[60](index=60&type=chunk) - Continued investment in FinTech aims to enhance the 'Bright Smart Securities (Baobao)' and 'Bright Smart Futures (Doudou)' apps, including adding US stock pre-market trading and launching '24-hour eDDA Direct Debit Service' to improve client experience[64](index=64&type=chunk)[65](index=65&type=chunk) - Commitment to strengthening online trading security involves relocating the central computer system to HKEX's central data center and implementing security measures like 'two-factor authentication'[70](index=70&type=chunk)[71](index=71&type=chunk) - The company undertakes investor education through its 'Bright Smart Finance Channel' live broadcasts, free investment seminars, and simulated competitions[59](index=59&type=chunk)[61](index=61&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=24&type=section&id=CAPITAL%20STRUCTURE,%20LIQUIDITY%20AND%20FINANCIAL%20RESOURCES) The Group maintains a robust financial position, primarily funded by equity, operating cash flow, and bank borrowings, with ample cash and bank balances, a reduced debt-to-asset ratio, and effective management of various financial risks Capital Structure, Liquidity and Financial Resources Summary | Metric | September 30, 2021 | March 31, 2021 | | :--- | :--- | :--- | | **Bank Deposits, Balances and Cash** | HK$630.7 million | HK$418.5 million | | **Total Bank Borrowings** | HK$7.6208 billion | HK$11.4360 billion | | **Debt-to-Asset Ratio** | 338.3% | 425.7% | | **Net Current Assets** | HK$2.0109 billion | HK$1.9439 billion | | **Current Ratio** | 1.2x | 1.1x | - The Group's credit risk primarily stems from receivables from clients, brokers, and clearing houses, managed through strict credit policies, collateral requirements, and daily monitoring[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - As of September 30, 2021, the Group had **259** employees, with a compensation policy designed to offer competitive remuneration to motivate and retain talent[98](index=98&type=chunk)[100](index=100&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) This section details directors' and major shareholders' interests, and confirms the company's adherence to corporate governance standards [Interests of Directors and Corporate Governance](index=28&type=section&id=Interests%20of%20Directors%20and%20Corporate%20Governance) This section discloses directors' and major shareholders' interests, with Chairman Mr. Yip Mau Lam holding approximately **63.85%** of shares, and confirms the company's full compliance with corporate governance codes and securities dealing standards during the period - Chairman Mr. Yip Mau Lam, through his wholly-owned companies and personal beneficial ownership, collectively holds approximately **63.85%** of the company's issued shares[105](index=105&type=chunk)[107](index=107&type=chunk) - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[102](index=102&type=chunk)[103](index=103&type=chunk) - The company confirmed full compliance with the Corporate Governance Code and the Model Code for Securities Transactions by Directors during the reporting period[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk) - The company's Audit Committee reviewed this interim financial report with external auditor KPMG[117](index=117&type=chunk)[119](index=119&type=chunk) [Financial Statements](index=33&type=section&id=Financial%20Statements) This section presents the consolidated financial statements, including the statement of comprehensive income, financial position, cash flows, and detailed notes [Consolidated Statement of Comprehensive Income](index=33&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended September 30, 2021, the Group reported revenue of **HK$567 million** (**-2.8%** YoY), operating profit of **HK$429 million** (**-14.3%** YoY), and profit after tax of **HK$295 million** (**-14.8%** YoY), with basic earnings per share at **17.38 HK cents** Consolidated Statement of Comprehensive Income Summary | Item (HK$ '000) | 2021 H1 | 2020 H1 | | :--- | :--- | :--- | | Revenue | 566,523 | 582,891 | | Operating Profit | 428,587 | 500,176 | | Profit Before Tax | 347,122 | 401,037 | | Profit for the Period | 294,911 | 346,053 | [Consolidated Statement of Financial Position](index=34&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2021, total assets decreased to **HK$11.839 billion** from **HK$15.858 billion**, primarily due to reduced receivables, while total liabilities decreased to **HK$9.634 billion**, and total equity increased to **HK$2.205 billion** Consolidated Statement of Financial Position Summary | Item (HK$ '000) | September 30, 2021 | March 31, 2021 | | :--- | :--- | :--- | | Total Non-Current Assets | 198,221 | 194,818 | | Total Current Assets | 11,641,036 | 15,663,569 | | Total Current Liabilities | 9,630,139 | 13,719,716 | | Net Current Assets | 2,010,897 | 1,943,853 | | Net Assets | 2,204,869 | 2,130,675 | | Total Equity | 2,204,869 | 2,130,675 | [Condensed Consolidated Cash Flow Statement](index=37&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) Net cash inflow from operating activities was **HK$4.348 billion**, primarily due to reduced receivables, while financing activities resulted in a net outflow of **HK$4.173 billion**, leading to a net increase in cash and cash equivalents of **HK$205 million** to **HK$631 million** at period-end Condensed Consolidated Cash Flow Statement Summary | Item (HK$ '000) | 2021 H1 | 2020 H1 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 4,347,536 | (21,466,443) | | Net Cash from Investing Activities | 30,583 | 82,666 | | Net Cash (Used in)/from Financing Activities | (4,173,255) | 21,301,756 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 204,864 | (82,021) | | Cash and Cash Equivalents at End of Period | 630,658 | 407,312 | [Notes to the Unaudited Interim Financial Report](index=38&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) The notes detail financial statement preparation, accounting policies, and item specifics, highlighting securities brokerage as the primary profit source, adequately collateralized margin client receivables, and significant related party transactions with the controlling shareholder - Segment reporting indicates that securities brokerage is the Group's primary profit source, contributing **HK$424 million** in reportable segment profit (EBIT) during the period[171](index=171&type=chunk) - Receivables from margin clients amounted to **HK$9.03 billion**, collateralized by securities with a total market value of **HK$29.18 billion**[182](index=182&type=chunk)[185](index=185&type=chunk) - The Group has significant related party transactions with companies owned by Director and controlling shareholder Mr. Yip, primarily for office property leases, with right-of-use assets and lease liabilities of **HK$25.47 million** and **HK$25.15 million** respectively[242](index=242&type=chunk)[245](index=245&type=chunk) [Independent Auditor's Review Report](index=68&type=section&id=Independent%20Auditor's%20Review%20Report) This section contains the independent auditor's review report on the interim financial statements [Independent Auditor's Review Report](index=68&type=section&id=Independent%20Auditor's%20Review%20Report_Section) KPMG reviewed this interim financial report under Hong Kong Standard on Review Engagements, noting that the scope is less than an audit, thus no audit opinion is expressed; based on the review, no material non-compliance with HKAS 34 was identified - Review Conclusion: Based on the review, the auditors did not note any matter that causes them to believe the interim financial report is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[259](index=259&type=chunk)[260](index=260&type=chunk)

耀 才 40 證券 BRIGHT SMART SECURITIES 耀才證券金融集團有限公司 Bright Smart Securities & Commodities Group Limited 24 小 時 eDDA 存 款 服 務 2 4 小 時 買 賣 全 球 產 品 | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | (於開曼群島註冊成立之有限公司) | | | | | | | | | (Incorporated in the Cayman Islands with limited liability) | | | | | | | | | 股份代號 Stock Code: 1428 | | | | | | | | | | | | | | | | | | | | | | | | ...