[Important Notice](index=3&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The report emphasizes the responsibility of the Board of Directors, Supervisory Committee, and senior management for the truthfulness, accuracy, and completeness of the report content, with interim financial information reviewed by Grant Thornton Hong Kong Limited and guaranteed by key executives, while forward-looking statements are not substantive commitments - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the report content and assume legal responsibility[4](index=4&type=chunk) - The interim financial information for the six months ended June 30, 2025, has been reviewed by Grant Thornton Hong Kong Limited[4](index=4&type=chunk) - Chairman Mr. Zhu Yanhui, President Mr. Yin Guohong, and Chief Financial Officer Mr. Sun Hang declare and guarantee the truthfulness, accuracy, and completeness of the interim financial information[5](index=5&type=chunk) [Section I Definitions](index=3&type=section&id=%E7%AC%AC%E4%B8%80%E7%AF%80%20%E9%87%8B%E4%B9%89) This section defines key terms and entities used in the report, including company names, major shareholders, subsidiaries, financial products, and regulatory bodies, ensuring clear understanding of the report content - The Company, Hengtou Securities, refers to a limited company established in China on December 28, 1998, and converted into a joint-stock company under Chinese law on November 3, 2008[7](index=7&type=chunk) - The Reporting Period refers to the six months ended June 30, 2025[10](index=10&type=chunk) - Major shareholders include Baotou Huazi, Financial Street Capital, Financial Street Investment, Financial Street Xihuan Property, Tianfeng Securities, Huifa Technology, and Hongzhi Huitong[7](index=7&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk)[12](index=12&type=chunk) [Section II Company Profile](index=7&type=section&id=%E7%AC%AC%E4%BA%8C%E7%AF%80%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) This section provides the company's basic information, including Chinese and English names, Board of Directors and special committee members, Supervisory Committee members, company secretary, authorized representatives, registered and headquarters addresses, auditors, and H-share listing information, comprehensively presenting the company's organizational structure and general overview - The company's Chinese name is Hengtai Securities Co., Ltd., operating in Hong Kong under the name 'Hengtou Securities'[14](index=14&type=chunk) - The Board of Directors consists of 1 executive director (Chairman Zhu Yanhui), 5 non-executive directors, and 3 independent non-executive directors[15](index=15&type=chunk) - The company's headquarters is located at 12th Floor, Block B, Desheng International Center, No. 83 Deshengmenwai Street, Xicheng District, Beijing, China[19](index=19&type=chunk) [Company Name](index=8&type=section&id=%E4%B8%80.%20%E5%85%AC%E5%8F%B8%E5%90%8D%E7%A8%B1) [Board of Directors](index=8&type=section&id=%E4%BA%8C.%20%E8%91%A3%E4%BA%8B%E6%9C%83) [Supervisory Committee](index=9&type=section&id=%E4%B8%89.%20%E7%9B%A3%E4%BA%8B%E6%9C%83) [Board Secretary](index=9&type=section&id=%E5%9B%9B.%20%E8%91%A3%E4%BA%8B%E6%9C%83%E7%A7%98%E4%B9%A6) [Joint Company Secretaries](index=9&type=section&id=%E4%BA%94.%20%E8%81%AF%E5%B8%AD%E5%85%AC%E5%8F%B8%E7%A7%98%E6%9B%B8) [Authorized Representatives](index=9&type=section&id=%E5%85%AD.%20%E6%8E%88%E6%AC%8A%E4%BB%A3%E8%A1%A8) [China Headquarters](index=9&type=section&id=%E4%B8%83.%20%E4%B8%AD%E5%9C%8B%E7%B8%BD%E9%83%A8) [Hong Kong Business Address](index=9&type=section&id=%E5%85%AB.%20%E9%A6%99%E6%B8%AF%E7%87%9F%E6%A5%AD%E5%9C%B0%E5%9D%80) [Auditor](index=10&type=section&id=%E4%B9%9D.%20%E6%A0%B8%E6%95%B8%E5%B8%AB) [Hong Kong Legal Advisor](index=10&type=section&id=%E5%8D%81.%20%E9%A6%99%E6%B8%AF%E6%B3%95%E5%BE%8B%E9%A1%A7%E5%95%8F) [H Share Registrar](index=10&type=section&id=%E5%8D%81%E4%B8%80.%20H%E8%82%A1%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98%E8%99%95) [H Share Stock Code](index=10&type=section&id=%E5%8D%81%E4%BA%8C.%20H%E8%82%A1%E8%82%A1%E7%A5%A8%E4%BB%A3%E8%99%9F) [Section III Summary of Accounting Data and Financial Indicators](index=11&type=section&id=%E7%AC%AC%E4%B8%89%E7%AF%80%20%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E5%92%8C%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99%E6%91%98%E8%A6%81) This section summarizes the company's key accounting data and financial indicators for the six months ended June 30, 2025, including operating performance, profitability, scale indicators, and risk control indicators, demonstrating significant performance growth and compliance with regulatory risk requirements Key Operating Performance and Profitability Indicators for H1 2025 (RMB thousands) | Indicator | Jan 1, 2025 to Jun 30, 2025 | Jan 1, 2024 to Jun 30, 2024 | YoY Growth/(Decline) | | :--- | :--- | :--- | :--- | | Total Operating Income | 1,665,642 | 1,169,284 | 42.45% | | Profit Before Tax | 314,359 | 75,098 | 318.60% | | Profit for the Period – Attributable to Ordinary Equity Holders of the Company | 240,733 | 53,872 | 346.86% | | Net Cash Generated From/(Used In) Operating Activities | 389,736 | (129,342) | 401.32% | | Basic Earnings Per Share (RMB per share) | 0.0924 | 0.0207 | 346.38% | | Weighted Average Return on Net Assets (%) | 2.86 | 0.67 | Increase of 2.19 percentage points | Scale Indicators for H1 2025 (RMB thousands) | Indicator | June 30, 2025 | December 31, 2024 | Growth/(Decline) from end of previous year | | :--- | :--- | :--- | :--- | | Total Assets | 43,186,520 | 39,981,081 | 8.02% | | Total Liabilities | 34,261,815 | 31,274,058 | 9.55% | | Equity Attributable to Ordinary Equity Holders and Holders of Perpetual Capital Securities | 8,544,448 | 8,295,533 | 3.00% | | Net Assets Per Share Attributable to Ordinary Equity Holders (RMB per share) | 3.28 | 3.18 | 3.14% | | Asset-Liability Ratio (%) | 61.31 | 62.60 | Decrease of 1.29 percentage points | Risk Control Indicators as of June 30, 2025 (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | Regulatory Standard | | :--- | :--- | :--- | :--- | | Net Capital | 5,615,398 | 5,903,665 | Not applicable | | Risk Coverage Ratio | 164.62% | 175.73% | ≥100% | | Capital Leverage Ratio | 24.85% | 23.62% | ≥8% | | Liquidity Coverage Ratio | 175.47% | 182.28% | ≥100% | | Net Stable Funding Ratio | 164.45% | 173.37% | ≥100% | | Net Capital / Net Assets | 65.70% | 71.34% | ≥20% | | Net Capital / Liabilities | 43.31% | 44.21% | ≥8% | | Proprietary Equity Securities and Derivatives / Net Capital | 19.39% | 22.61% | ≤100% | | Proprietary Non-Equity Securities and Derivatives / Net Capital | 166.21% | 147.18% | ≤500% | - During the reporting period, the company's net capital was **RMB 5,615.40 million**, a decrease of **RMB 288.27 million** from the end of 2024, but all risk control indicators met regulatory requirements[33](index=33&type=chunk) [Key Accounting Data and Financial Indicators](index=11&type=section&id=%E4%B8%80.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E5%92%8C%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) [The Company's Net Capital and Other Risk Control Indicators](index=14&type=section&id=%E4%BA%8C.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E6%B7%A8%E8%B3%87%E6%9C%AC%E7%AD%89%E9%A2%A8%E9%9A%AA%E6%8E%A7%E5%88%B6%E6%8C%87%E6%A8%99) [Section IV Management Discussion and Analysis](index=14&type=section&id=%E7%AC%AC%E5%9B%9B%E7%AF%80%20%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides a comprehensive analysis of the company's operating performance, market environment, business development, financial condition, and risk management during the reporting period, demonstrating significant growth in a complex market and active promotion of business transformation and risk management system construction - During the reporting period, the Group achieved total operating income of **RMB 1,665.64 million**, a year-on-year increase of **42.45%**, and net profit of **RMB 209.50 million**, a year-on-year increase of **1,003.21%**[38](index=38&type=chunk) - The company will continuously enhance its business capabilities, promote corporate transformation and upgrading, accelerate the construction of its business brand system, strengthen financial technology empowerment, and improve customer service capabilities[62](index=62&type=chunk) - The company has established a four-tier risk management system including the Board of Directors, Party Committee, management, risk management functional departments, and business departments, and has incorporated all subsidiaries into its comprehensive risk management system[94](index=94&type=chunk) [Economic Environment and Market Conditions During the Reporting Period](index=15&type=section&id=%E4%B8%80.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E7%B6%93%E6%BF%9F%E7%92%B0%E5%A2%83%E5%92%8C%E5%B8%82%E5%9C%B0%E7%8B%80%E6%B3%81) In H1 2025, China's economy remained stable and positive, with GDP growing by **5.30%** year-on-year and moderately loose monetary policy, while the A-share market saw volatile upward movement, increased trading activity, and significant year-on-year growth in total stock and fund transaction volume - In H1 2025, China's Gross Domestic Product (GDP) increased by **5.30%** year-on-year[36](index=36&type=chunk) - China's A-share market showed a volatile upward trend, with the Shanghai Composite Index rising by **2.76%**, the Shenzhen Component Index by **0.48%**, and the ChiNext Index by **0.53%**[37](index=37&type=chunk) - The total transaction volume of stock funds in Shanghai and Shenzhen markets amounted to **RMB 18,878.28 billion**, with Shanghai increasing by **50.80%** and Shenzhen by **76.35%** year-on-year[37](index=37&type=chunk) [Analysis of Principal Business Operations](index=16&type=section&id=%E4%BA%8C.%20%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E6%83%85%E6%B3%81%E5%88%86%E6%9E%90) During the reporting period, all principal business segments achieved positive progress, with significant growth in brokerage and wealth management, breakthroughs in investment banking equity and debt financing, solid performance in investment management product innovation, and substantial revenue increase in proprietary trading through diversified strategies - Brokerage and wealth management business achieved operating income of **RMB 950.77 million**, a **36.19%** increase from the same period in 2024[39](index=39&type=chunk) - Investment banking business achieved operating income of **RMB 92.68 million**, a **41.54%** increase from the same period in 2024[46](index=46&type=chunk) - Proprietary trading business achieved operating income of **RMB 475.12 million**, a **102.99%** increase from the same period in 2024[58](index=58&type=chunk) [Brokerage and Wealth Management Business](index=16&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E7%B6%93%E7%B4%80%E5%8F%8A%E8%B2%A1%E5%AF%8C%E7%AE%A1%E7%90%86%E6%A5%AD%E5%8B%99) Brokerage and wealth management business achieved growth in client numbers and assets under custody, with significantly increased stock and fund trading volume, by optimizing organizational structure, enhancing online services, and improving tiered service systems, while futures brokerage equity reached a new high, wealth management transitioned to a buyer-side model, financial product sales and retention steadily grew, capital intermediary balances remained stable, and asset custody expanded Key Indicators for Brokerage and Wealth Management Business | Indicator | June 30, 2025 | December 31, 2024 | Growth from end of 2024 | | :--- | :--- | :--- | :--- | | Total Clients | 4.1189 million accounts | - | 3.21% | | Total Client Assets Under Custody | RMB 189,284.21 million | - | 5.55% | | Stock and Fund Trading Volume | RMB 1,375,839.14 million | - | Increased by 65.04% from same period in 2024 | | Stock and Fund Market Share | 0.3645% | - | Increased by 0.64% from same period in 2024 | - Wealth management business sold **2,346 financial products**, with a sales volume of **RMB 9,019.66 million** and an end-of-period financial product retention scale of **RMB 19,478.06 million**[43](index=43&type=chunk) - Total scale of asset custody, fund services, and fundraising supervision was **RMB 115,050 million**, with **1 new asset management plan** and **12 new private equity fund custody accounts** added[45](index=45&type=chunk) [Securities Brokerage](index=16&type=section&id=1.%20%E8%AD%89%E5%88%B8%E7%B6%93%E7%B4%80) [Futures Brokerage](index=16&type=section&id=2.%20%E6%9C%9F%E8%B2%A8%E7%B6%93%E7%B4%80) [Wealth Management](index=17&type=section&id=3.%20%E8%B2%A1%E5%AF%8C%E7%AE%A1%E7%90%86) [Capital Intermediation](index=17&type=section&id=4.%20%E8%B3%87%E6%9C%AC%E4%B8%AD%E4%BB%8B) [Asset Custody](index=17&type=section&id=5.%20%E8%B3%87%E7%94%A2%E8%A8%97%E7%AE%A1) [Investment Banking Business](index=18&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E6%8A%95%E8%B3%87%E9%8A%80%E8%A1%8C%E6%A5%AD%E5%8B%99) Investment banking business focused on core clients, achieving progress in both equity and debt financing and NEEQ recommendations, completing **1 listed company financial advisory project** and actively advancing refinancing and M&A, while completing **24 corporate bond projects** with an underwriting scale of **RMB 5,652 million**, and **1 NEEQ declaration project**, **4 financing projects**, and **132 ongoing supervision projects** - Equity financing completed **1 financial advisory project** for a listed company, with multiple refinancing and M&A projects steadily progressing[47](index=47&type=chunk) - Debt business completed **24 corporate bond projects**, with a total underwriting scale of **RMB 5,652 million**[48](index=48&type=chunk) - NEEQ recommendation business completed **1 declaration project**, **4 NEEQ financing projects**, and had **132 ongoing supervision projects** at period-end[49](index=49&type=chunk) [Equity Financing](index=18&type=section&id=1.%20%E8%82%A1%E6%AC%8A%E8%9E%8D%E8%B3%87) [Debt Financing](index=18&type=section&id=2.%20%E5%82%B5%E5%88%B8%E8%9E%8D%E8%B3%87) [NEEQ Recommendation Business](index=18&type=section&id=3.%20%E6%96%B0%E4%B8%89%E6%9D%BF%E6%8E%A8%E8%96%A6%E6%A5%AD%E5%8B%99) [Investment Management Business](index=19&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%20%E6%8A%95%E8%B3%87%E7%AE%A1%E7%90%86%E6%A5%AD%E5%8B%99) Investment management business operating income decreased by **12.85%** year-on-year, with asset management issuing **2 fixed-income** and **1 FOF collective asset management plans** through enhanced research and product innovation, achieving positive growth in fixed-income product performance, while Xinhua Fund launched **two new equity index products** with AUM growing by **7.68%** year-on-year, Hengtai Capital managed **2 private equity funds** totaling **RMB 2,900 million**, and alternative investments strengthened post-investment management with **22 direct investment projects** - Investment management business achieved operating income of **RMB 132.08 million**, a **12.85%** decrease from the same period in 2024[51](index=51&type=chunk) - Asset management business issued **2 fixed-income** and **1 FOF collective asset management plans**, with an end-of-period total scale of **RMB 15,333.40 million**[52](index=52&type=chunk) - Xinhua Fund managed **47 public funds**, with assets under management of **RMB 53,206 million**, a year-on-year increase of **7.68%**[54](index=54&type=chunk) - Hengtai Capital managed **2 private equity funds**, with a fund management scale of **RMB 2,900 million**[55](index=55&type=chunk) [Asset Management](index=19&type=section&id=1.%20%E8%B3%87%E7%94%A2%E7%AE%A1%E7%90%86) [Fund Management](index=20&type=section&id=2.%20%E5%9F%BA%E9%87%91%E7%AE%A1%E7%90%86) [Private Equity Investment](index=20&type=section&id=3.%20%E7%A7%81%E5%8B%9F%E8%82%A1%E6%AC%8A%E6%8A%95%E8%B3%87) [Alternative Investment](index=20&type=section&id=4.%20%E5%8F%A6%E9%A1%9E%E6%8A%95%E8%B3%87) [Proprietary Trading Business](index=21&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%20%E8%87%AA%E7%87%9F%E4%BA%A4%E6%98%93%E6%A5%AD%E5%8B%99) Proprietary trading business achieved operating income of **RMB 475.12 million**, a **102.99%** year-on-year increase, by building a tiered equity investment system focusing on core assets and high-dividend/growth assets, utilizing quantitative tools and stock index futures to enhance returns, while fixed income business managed trading pace, increased allocation to high-grade credit bonds, and actively engaged in interest rate derivatives, and multi-strategy investment capitalized on Beijing Stock Exchange opportunities to increase equity exposure - Proprietary trading business achieved operating income of **RMB 475.12 million**, a **102.99%** increase from the same period in 2024[58](index=58&type=chunk) - Equity investment business built a tiered equity investment system, focusing on core assets, high-dividend, and growth assets, enhancing return stability through A-share, H-share high-dividend investments, and quantitative/stock index futures tools[58](index=58&type=chunk) - Fixed income business achieved favorable returns by rapidly reducing long-duration bond positions, increasing allocation to high-grade credit bonds, and engaging in interest rate derivatives trading[59](index=59&type=chunk) - Multi-strategy investment business capitalized on the high-elasticity opportunities in the Beijing Stock Exchange market, increasing equity exposure, and conducted preliminary preparations for commodity futures investments[59](index=59&type=chunk) [Outlook and Future Plans](index=22&type=section&id=%E4%B8%89.%20%E5%89%8D%E6%99%AF%E5%8F%8A%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) The company anticipates continued deepening of capital market reforms, accelerated integration in the securities industry with leading institutions consolidating faster, requiring small and medium-sized brokers to differentiate, while traditional brokerage will shift to a buyer-side advisory model, investment banking will focus on key national strategies, asset management will optimize its structure, and fintech will be fully leveraged, with the company committed to Party building, governance improvement, risk control, business capability enhancement, transformation, and differentiated competitive advantages - Industry Outlook: Capital market reforms continue to deepen, securities industry integration accelerates, leading institutions will consolidate faster, and small and medium-sized brokers need to focus on differentiated operations[61](index=61&type=chunk) - Brokerage business will accelerate its transformation to a buyer-side advisory model, and investment banking will focus on the 'Five Key Articles' guidelines, deeply participating in the cultivation of new quality productive forces through innovative models such as M&A integration and industrial chain matchmaking[61](index=61&type=chunk) - Company Development Plan: Adhere to Party building leadership, improve corporate governance, strengthen compliance and risk control foundations, enhance internal control management, launch talent renewal projects, and improve operational efficiency[62](index=62&type=chunk) - In terms of business, the company will continuously enhance its business capabilities, promote corporate transformation and upgrading, accelerate the construction of its business brand system, strengthen financial technology empowerment, and improve customer service capabilities[62](index=62&type=chunk) [Industry Development Outlook](index=22&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E8%A1%8C%E6%A5%AD%E7%99%BC%E5%B1%95%E5%89%8D%E6%99%AF) [Company Development Plan](index=23&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E5%85%AC%E5%8F%B8%E7%99%BC%E5%B1%95%E8%A6%8F%E5%8A%83) [Financial Statement Analysis](index=24&type=section&id=%E5%9B%9B.%20%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%88%86%E6%9E%90) During the reporting period, the company's profitability significantly improved, with substantial growth in total operating income and net profit attributable to the parent company, while asset structure remained stable with increases in total assets and liabilities, and asset-liability ratio and financial leverage multiples remained relatively stable, with debt financing meeting funding needs, good liquidity management, improved operating and investing cash flows, and financing cash outflows, with no changes in major accounting policies Profitability Overview | Indicator | H1 2025 | H1 2024 | YoY Growth/(Decline) | | :--- | :--- | :--- | :--- | | Total Operating Income | RMB 1,665.64 million | RMB 1,169.28 million | 42.45% | | Net Profit Attributable to Shareholders of the Company | RMB 240.73 million | RMB 53.87 million | 346.86% | | Earnings Per Share | RMB 0.0924 | RMB 0.0207 | 346.38% | | Weighted Average Return on Net Assets | 2.86% | 0.67% | Increase of 2.19 percentage points | Asset Structure and Liability Level | Indicator | June 30, 2025 | December 31, 2024 | Growth/(Decline) from end of 2024 | | :--- | :--- | :--- | :--- | | Total Assets | RMB 43,186.52 million | RMB 39,981.08 million | 8.02% | | Total Liabilities | RMB 34,261.82 million | RMB 31,274.06 million | 9.55% | | Equity Attributable to Ordinary Equity Holders and Holders of Perpetual Capital Securities | RMB 8,544.45 million | RMB 8,295.53 million | 3.00% | | Asset-Liability Ratio | 61.31% | 62.60% | Decrease of 1.29 percentage points | | Financial Leverage Multiple | 2.70 times | 2.81 times | Decrease of 3.91% | - Cash flow situation: Net cash from operating activities turned positive, net cash from investing activities significantly increased, and net cash from financing activities shifted from inflow to outflow[69](index=69&type=chunk) [Analysis of Profitability During the Reporting Period](index=24&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E7%9B%88%E5%88%A9%E8%83%BD%E5%8A%9B%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) [Asset Structure and Asset Quality](index=24&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E8%B3%87%E7%94%A2%E7%B5%90%E6%A7%8B%E5%92%8C%E8%B3%87%E7%94%A2%E5%93%81%E8%B3%AA) [Financing Channels and Capacity](index=25&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%20%E8%9E%8D%E8%B3%87%E6%B8%A0%E9%81%93%E5%92%8C%E8%9E%8D%E8%B3%87%E8%83%BD%E5%8A%9B) [Liquidity Level Management](index=25&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%20%E6%B5%81%E5%8B%95%E6%80%A7%E6%B0%B4%E5%B9%B3%E7%AE%A1%E7%90%86) [Cash Flow Situation](index=25&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%20%E7%8F%BE%E9%87%91%E6%B5%81%E8%BD%89%E6%83%85%E5%86%B5) [Changes in Major Accounting Policies](index=25&type=section&id=%EF%BC%88%E5%85%AD%EF%BC%89%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E6%9B%B4%E6%83%85%E5%86%B5) [Branch Offices and Subsidiaries](index=26&type=section&id=%E4%BA%94.%20%E5%88%86%E6%94%AF%E6%A9%9F%E6%A7%8B%E3%80%81%E5%AD%90%E5%85%AC%E5%8F%B8%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **7 branch offices** and **102 securities brokerage outlets**, with **5 outlets completing relocation**, while **4 securities brokerage outlets were upgraded to branch offices** and **1 branch office completed a change in business scope**, and major subsidiaries Hengtai Futures and Xinhua Fund completed registered capital changes, and Hengtai Xianfeng completed a change in legal representative - As of the end of the reporting period, the company had **7 branch offices** and **102 securities brokerage outlets**, with **5 outlets completing relocation**[71](index=71&type=chunk)[72](index=72&type=chunk) - **4 securities brokerage outlets were upgraded to branch offices**, including Shandong Branch, Shanghai First Branch, Shanghai Second Branch, and Zhejiang Branch[73](index=73&type=chunk) - Hengtai Futures completed the industrial and commercial registration for a change in registered capital from **RMB 125 million** to **RMB 228.0303 million**[76](index=76&type=chunk) - Xinhua Fund completed the industrial and commercial registration for a change in registered capital from **RMB 217.50 million** to **RMB 627.75641 million**, with the company's shareholding ratio changing from **58.62%** to **52.99%**[76](index=76&type=chunk) [Branch Offices and Securities Brokerage Outlets](index=26&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E5%88%86%E5%85%AC%E5%8F%B8%E3%80%81%E8%AD%89%E5%88%B8%E7%87%9F%E6%A5%AD%E9%83%A8%E6%83%85%E5%86%B5) [Subsidiaries](index=28&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E6%83%85%E5%86%B5) [Significant Financing Activities](index=28&type=section&id=%E5%85%AD.%20%E9%87%8D%E5%A4%A7%E8%9E%8D%E8%B3%87%E6%83%85%E6%B3%81) During the reporting period, the company did not undertake equity financing, with major debt financing including the issuance of income certificates raising a cumulative **RMB 1.35 billion** and borrowing **RMB 150 million** in subordinated debt, while as of the end of the reporting period, outstanding income certificates totaled **RMB 1.58 billion**, outstanding subordinated bonds **RMB 1.50 billion**, and outstanding corporate bonds **RMB 1.95 billion** - During the reporting period, the company had no equity financing activities[74](index=74&type=chunk) - The company issued income certificates raising a cumulative **RMB 1.35 billion**, and as of June 30, 2025, the outstanding balance of income certificates was **RMB 1.58 billion**[75](index=75&type=chunk) - The company borrowed subordinated debt raising a cumulative **RMB 150 million**, and as of June 30, 2025, the outstanding balance of subordinated debt was **RMB 150 million**[80](index=80&type=chunk) - As of June 30, 2025, the outstanding balance of subordinated bonds was **RMB 1.50 billion**, and the outstanding balance of corporate bonds was **RMB 1.95 billion**[78](index=78&type=chunk)[79](index=79&type=chunk) [Equity Financing](index=28&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E8%82%A1%E6%AC%8A%E8%9E%8D%E8%B3%87) [Major Debt Financing](index=28&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E4%B8%BB%E8%A6%81%E5%82%B5%E5%8B%99%E8%9E%8D%E8%B3%87) [Significant Investment Activities](index=29&type=section&id=%E4%B8%83.%20%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%83%85%E5%86%B5) During the reporting period, the company had no significant investment activities - During the reporting period, the company had no significant investment activities[81](index=81&type=chunk) [Significant Asset Acquisitions, Disposals, External Guarantees, Mortgages, Pledges, and Material Contingent Liabilities](index=30&type=section&id=%E5%85%AB.%20%E9%87%8D%E5%A4%A7%E8%B3%87%E7%94%A2%E6%94%B6%E8%B3%BC%E3%80%81%E5%87%BA%E5%94%AE%E5%8F%8A%E5%B0%8D%E5%A4%96%E6%93%8D%E4%BF%9D%E3%80%81%E6%8A%B5%E6%8A%BC%E3%80%81%E8%B3%AA%E6%8A%BC%E5%92%8C%E9%87%8D%E5%A4%A7%E6%88%96%E6%9C%89%E8%B2%A0%E5%80%B5%E6%83%85%E6%B3%81) During the reporting period, the company had no significant asset acquisitions, disposals, or business combinations, nor any material contingent liabilities, but provided a guarantee for Xinhua Fund, with real estate and **50% equity** in Hengtai Changcai serving as counter-guarantees - During the reporting period, the company had no significant asset acquisitions, disposals, or business combinations, nor any material contingent liabilities[82](index=82&type=chunk) - The company mortgaged or pledged a residential property, an office property, and **50% equity** in Hengtai Changcai to Financial Street Investment as counter-guarantees for the amounts guaranteed by Financial Street Investment under the execution settlement agreement, guarantee agreement, and letter of guarantee[83](index=83&type=chunk)[84](index=84&type=chunk) [Risk Management](index=31&type=section&id=%E4%B9%9D.%20%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The company has established a comprehensive risk management system covering credit, market, liquidity, compliance, operational, and reputational risks, with corresponding strategies and measures, and during the reporting period, continuously improved risk management systems, organizational structure, information technology systems, and indicator frameworks, while strengthening talent development and response mechanisms to ensure all risk indicators meet regulatory requirements - The company's main operating risks include credit risk, market risk, liquidity risk, compliance risk, operational risk, and reputational risk[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - The company has established a four-tier risk management system including the Board of Directors, Party Committee, management, risk management functional departments, and business departments, and has incorporated all subsidiaries into its comprehensive risk management system[94](index=94&type=chunk) - The company has established a risk appetite indicator system centered on net capital and liquidity, covering market risk, credit risk, operational risk, and concentration risk, and regularly assesses its tolerance through stress tests and other methods[96](index=96&type=chunk) [Principal Operating Risks and Countermeasures](index=31&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E5%85%AC%E5%8F%B8%E7%B6%93%E7%87%9F%E7%9A%84%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%92%8C%E5%B0%8D%E7%AD%96) [Credit Risk](index=31&type=section&id=1.%20%E4%BF%A1%E7%94%A8%E9%A2%A8%E9%9A%AA) [Market Risk](index=31&type=section&id=2.%20%E5%B8%82%E5%A0%B4%E9%A2%A8%E9%9A%AA) [Liquidity Risk](index=32&type=section&id=3.%20%E6%B5%81%E5%8B%95%E6%80%A7%E9%A2%A8%E9%9A%AA) [Compliance Risk](index=32&type=section&id=4.%20%E5%90%88%E8%A6%8F%E9%A2%A8%E9%9A%AA) [Operational Risk](index=32&type=section&id=5.%20%E6%93%8D%E4%BD%9C%E9%A2%A8%E9%9A%AA) [Reputational Risk](index=33&type=section&id=6.%20%E8%81%B2%E8%AA%89%E9%A2%A8%E9%9A%AA) [Construction of the Company's Risk Management System and Implementation of Comprehensive Risk Management](index=33&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E5%85%AC%E5%8F%B8%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E9%AB%94%E7%B3%BB%E5%BB%BA%E8%A8%AD%E5%8F%8A%E5%85%A8%E9%9D%A2%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E8%90%BD%E5%AF%A6%E6%83%85%E5%86%B5) [Management System Aspects](index=33&type=section&id=1.%20%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E6%96%B9%E9%9D%A2) [Organizational Structure Aspects](index=34&type=section&id=2.%20%E7%B5%84%E7%B9%94%E6%9E%B6%E6%A7%8B%E6%96%B9%E9%9D%A2) [Information Technology Aspects](index=34&type=section&id=3.%20%E4%BF%A1%E6%81%AF%E6%8A%80%E8%A1%93%E6%96%B9%E9%9D%A2) [Indicator System Aspects](index=34&type=section&id=4.%20%E6%8C%87%E6%A8%93%E9%AB%94%E7%B3%BB%E6%96%B9%E9%9D%A2) [Talent Team Aspects](index=35&type=section&id=5.%20%E4%BA%BA%E6%89%8D%E9%9A%8A%E4%BC%8D%E6%96%B9%E9%9D%A2) [Response Mechanism Aspects](index=35&type=section&id=6.%20%E6%87%89%E5%B0%8D%E6%A9%9F%E5%88%B6%E6%96%B9%E9%9D%A2) [Section V Other Significant Matters](index=36&type=section&id=%E7%AC%AC%E4%BA%94%E7%AF%80%20%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A0%85) This section discloses the company's significant non-financial matters during the reporting period, including profit distribution plans, absence of equity incentive schemes, progress in major litigation (Qinghui Leasing case first-instance ruling revoked and remanded for retrial), auditor re-appointment, compliance with corporate governance code, and the operation of the Board of Directors and Supervisory Committee, demonstrating the company's efforts in compliance and governance - The 2024 profit distribution plan was no profit distribution, and there is no profit distribution proposal for H1 2025[100](index=100&type=chunk) - During the reporting period, the company had no share option schemes or equity incentive plans[101](index=101&type=chunk) - In the dispute case concerning the Qinghui Leasing Phase I Asset-Backed Special Plan managed by the company, the Supreme People's Court ruled in the second instance to revoke the first-instance ruling and instructed the Beijing High People's Court to conduct a retrial[106](index=106&type=chunk) - The company re-appointed Grant Thornton Certified Public Accountants (Special General Partnership) and Grant Thornton Hong Kong Limited as its domestic and overseas auditors for 2025[107](index=107&type=chunk) - During the reporting period, the company strictly complied with all code provisions of the Corporate Governance Code[108](index=108&type=chunk) [Profit Distribution and Profit Distribution Plan](index=36&type=section&id=%E4%B8%80.%20%E5%88%A9%E6%BD%A4%E5%88%86%E9%85%8D%E5%8F%8A%E5%88%A9%E6%BD%A4%E5%88%86%E9%85%8D%E9%A0%90%E6%A1%88) [Execution of 2024 Annual Profit Distribution Plan](index=36&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%202024%E5%B9%B4%E5%BA%A6%E5%88%A9%E6%BD%A4%E5%88%86%E9%85%8D%E6%96%B9%E6%A1%88%E5%9F%B7%E8%A1%8C%E6%83%85%E5%86%B5) [2025 Interim Profit Distribution Plan](index=36&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%202025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E5%88%A9%E6%BD%A4%E5%88%86%E9%85%8D%E6%96%B9%E6%A1%88) [Share Option Schemes or Equity Incentive Plans](index=36&type=section&id=%E4%BA%8C.%20%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83%E6%88%96%E8%82%A1%E6%AC%8A%E6%BF%80%E5%8B%B5%E8%A8%88%E5%8A%83%E6%83%85%E5%86%B5) [Major Litigation and Arbitration Matters](index=36&type=section&id=%E4%B8%89.%20%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A0%85) [New Major Litigation and Arbitration Matters During the Reporting Period](index=36&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E6%96%B0%E5%A2%9E%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A0%85) [Previous Years' Major Litigation and Arbitration Matters with Subsequent Progress](index=36&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E6%9C%89%E5%BE%8C%E7%BA%8C%E9%80%B2%E5%B1%95%E7%9A%84%E4%BB%A5%E5%89%8D%E5%B9%B4%E5%BA%A6%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A0%85) [Appointment of Auditor](index=37&type=section&id=%E5%9B%9B.%20%E8%81%98%E4%BB%BB%E6%A0%B8%E6%95%B8%E5%B8%AB%E6%83%85%E5%86%B5) [Compliance with Corporate Governance Code](index=37&type=section&id=%E4%BA%94.%20%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) [Corporate Governance Status](index=38&type=section&id=%E5%85%AD.%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E6%83%85%E5%86%B5) [Shareholders' Meeting](index=38&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E8%82%A1%E6%9D%B1%E5%A4%A7%E6%9C%83) [Operation of the Board of Directors and Board Committees](index=38&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E8%91%A3%E4%BA%8B%E6%9C%83%E5%B0%88%E9%96%80%E5%A7%94%E5%93%A1%E6%9C%83%E9%81%8B%E4%BD%9C%E6%83%85%E5%86%B5) [Operation of the Supervisory Committee](index=39&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%20%E7%9B%A3%E4%BA%8B%E6%9C%83%E9%81%8B%E4%BD%9C%E6%83%85%E5%86%B5) [Compliance with the Model Code](index=39&type=section&id=%E4%B8%83.%20%E9%81%B5%E5%AE%88%E3%80%8A%E6%A8%99%E6%BA%96%E5%AE%88%E5%88%99%E3%80%8B) [Directors' and Supervisors' Service Contracts](index=39&type=section&id=%E5%85%AB.%20%E8%91%A3%E4%BA%8B%E5%8F%8A%E7%9B%A3%E4%BA%8B%E6%9C%8D%E5%8B%99%E5%90%88%E7%B4%84) [Directors' and Supervisors' Rights to Acquire Shares or Debentures](index=39&type=section&id=%E4%B9%9D.%20%E8%91%A3%E4%BA%8B%E5%8F%8A%E7%9B%A3%E4%BA%8B%E8%B3%BC%E5%85%A5%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E5%88%B8%E8%AD%89%E7%9A%84%E6%AC%8A%E5%88%A9) [Section VI Share Changes and Shareholder Information](index=40&type=section&id=%E7%AC%AC%E5%85%AD%E7%AF%80%20%E8%82%A1%E4%BB%BD%E8%AE%8A%E5%8B%95%E5%8F%8A%E8%82%A1%E6%9D%B1%E6%83%85%E5%86%B5) This section details the interests and short positions of major shareholders and their associates in the company's shares as of June 30, 2025, as well as the shareholdings of directors, supervisors, and senior management, confirming that neither the company nor its subsidiaries purchased, redeemed, or sold any listed securities during the reporting period - As of June 30, 2025, Huarong Comprehensive Investment held **569,895,304 domestic shares**, representing **21.8806%** of the company's total issued shares[119](index=119&type=chunk) - Financial Street Investment and its associates (Financial Street Capital, Xicheng District SASAC) collectively held **781,367,619 domestic shares**, representing **29.9999%** of the company's total issued shares[119](index=119&type=chunk) - Tianfeng Securities held **440,618,114 domestic shares**, representing **16.9171%** of the company's total issued shares[119](index=119&type=chunk) - During the reporting period, none of the company's directors, supervisors, and chief executive had any disclosable interests or short positions in the shares, related shares, or debentures of the company or any of its associated corporations[122](index=122&type=chunk) - During the reporting period, neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities[123](index=123&type=chunk) [Interests and Short Positions of Major Shareholders and Other Persons in the Company's Shares and Related Shares](index=40&type=section&id=%E4%B8%80.%20%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) [Interests and Short Positions of Directors, Supervisors, and Chief Executive in Shares, Related Shares, and Debentures of the Company and Associated Corporations](index=42&type=section&id=%E4%BA%8C.%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E6%96%BC%E5%85%AC%E5%8F%B8%E5%8F%8A%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E8%AD%89%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%92%8C%E6%B7%A1%E5%80%89) [Purchase, Redemption or Sale of the Company's Listed Securities](index=42&type=section&id=%E4%B8%89.%20%E8%B3%BC%E8%B2%B7%E3%80%81%E8%B4%96%E5%9B%9E%E6%88%96%E5%87%BA%E5%94%AE%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) [Section VII Directors, Supervisors, Senior Management, and Employees](index=43&type=section&id=%E7%AC%AC%E4%B8%83%E7%AF%80%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E5%8F%8A%E5%93%A1%E5%B7%A5%E6%83%85%E5%86%B5) This section reports changes in the company's directors, supervisors, and senior management, including new appointments, resignations, and information updates, and details the total number of employees, compensation policy (emphasizing incentives and constraints, deferred payment, and clawback mechanisms), and comprehensive employee training programs as of the end of the reporting period, reflecting the company's commitment to talent management and development - Mr. Pang Jiemin was appointed as a non-executive director of the Fifth Board of Directors, and Mr. Yu Lei resigned[125](index=125&type=chunk) - Mr. Yang Jinliang was appointed as the company's Vice President[127](index=127&type=chunk) - As of the end of the reporting period, the Group had a total of **2,491 employees**, including **2,075 employees** at the company and **416 employees** at subsidiaries[130](index=130&type=chunk) - The company has established a compensation management mechanism that unifies incentives and constraints, combines fairness and efficiency, and includes deferred payment and clawback mechanisms for compensation distribution[130](index=130&type=chunk) - During the reporting period, the company organized and implemented **41 internal and external training sessions**, with a total of **7,849 participants**, achieving **100% training coverage**[131](index=131&type=chunk) [Changes in Directors, Supervisors, and Senior Management](index=43&type=section&id=%E4%B8%80.%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E8%AE%8A%E5%8B%95%E6%83%85%E5%86%B5) [Changes in Directors](index=43&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E8%91%A3%E4%BA%8B%E8%AE%8A%E5%8B%95%E6%83%85%E5%86%B5) [Changes in Supervisors](index=43&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E7%9B%A3%E4%BA%8B%E8%AE%8A%E5%8B%95%E6%83%85%E5%86%B5) [Changes in Senior Management](index=43&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%20%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E8%AE%8A%E5%8B%95%E6%83%85%E5%86%B5) [Changes in Directors' and Supervisors' Information](index=43&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%20%E8%91%A3%E4%BA%8B%E5%8F%8A%E7%9B%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E6%9B%B4) [Employees, Compensation Policy, and Training](index=44&type=section&id=%E4%BA%8C.%20%E5%91%A1%E5%B7%A5%E3%80%81%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96%E5%8F%8A%E5%9F%B9%E8%A8%93%E6%83%85%E5%86%B5) [Independent Review Report](index=44&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) Grant Thornton Hong Kong Limited reviewed Hengtou Securities' interim financial information for the six months ended June 30, 2025, concluding that nothing came to their attention to suggest the interim financial information was not prepared, in all material respects, in accordance with International Accounting Standard 34 'Interim Financial Reporting' - Grant Thornton Hong Kong Limited has reviewed the interim financial information of Hengtou Securities and its subsidiaries for the six months ended June 30, 2025[134](index=134&type=chunk) - The scope of review is substantially less than that of an audit conducted in accordance with Hong Kong Standards on Auditing, and accordingly, no audit opinion is expressed[135](index=135&type=chunk) - Based on the review, nothing has come to the auditor's attention that causes them to believe that the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 'Interim Financial Reporting'[136](index=136&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=46&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the condensed consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, and the comparative period in 2024, reflecting significant growth in the company's total operating income, profit before tax, profit for the period, and earnings per share Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Item | Jan 1, 2025 to Jun 30, 2025 | Jan 1, 2024 to Jun 30, 2024 | | :--- | :--- | :--- | | Total Operating Income | 1,665,642 | 1,169,284 | | Profit Before Tax | 314,359 | 75,098 | | Profit for the Period | 209,500 | 18,994 | | Profit for the Period – Attributable to Ordinary Equity Holders of the Company | 240,733 | 53,872 | | Total Comprehensive Income for the Period | 217,682 | 33,616 | | Basic and Diluted Earnings Per Share | RMB 0.0924 | RMB 0.0207 | - Fee and commission income increased from **RMB 572,872 thousand** in the same period of 2024 to **RMB 838,699 thousand** in the same period of 2025[139](index=139&type=chunk) - Net investment income increased from **RMB 187,962 thousand** in the same period of 2024 to **RMB 258,674 thousand** in the same period of 2025[139](index=139&type=chunk) [Condensed Consolidated Statement of Financial Position](index=48&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement provides the condensed consolidated financial position as of June 30, 2025, and December 31, 2024, showing the composition and changes in the company's assets, liabilities, and equity, with increases in both total assets and total liabilities, and a steady rise in equity attributable to ordinary equity holders Condensed Consolidated Statement of Financial Position (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 43,186,520 | 39,981,081 | | Total Liabilities | 34,261,815 | 31,274,058 | | Equity Attributable to Ordinary Equity Holders of the Company | 8,544,448 | 8,295,533 | | Total Equity | 8,924,705 | 8,707,023 | - Cash held on behalf of brokerage clients increased from **RMB 16,178,519 thousand** as of December 31, 2024, to **RMB 19,271,204 thousand** as of June 30, 2025[142](index=142&type=chunk) - Accounts payable to brokerage clients increased from **RMB 16,700,618 thousand** as of December 31, 2024, to **RMB 20,121,543 thousand** as of June 30, 2025[143](index=143&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=51&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement presents the condensed consolidated changes in equity for the six months ended June 30, 2025, and the comparative period in 2024, reflecting the impact of profit for the period and other comprehensive income attributable to ordinary equity holders on total equity, as well as the appropriation to general risk reserves Condensed Consolidated Statement of Changes in Equity (RMB thousands) | Item | Jan 1, 2025 | Profit for the Period | Other Comprehensive Income for the Period | Total Comprehensive Income for the Period | Appropriation to General Risk Reserve | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Attributable to Ordinary Equity Holders of the Company | 8,295,533 | 240,733 | 8,182 | 248,915 | - | 8,544,448 | | Non-controlling Interests | 411,490 | (31,233) | - | (31,233) | - | 380,257 | | Total Equity | 8,707,023 | 209,500 | 8,182 | 217,682 | - | 8,924,705 | - Undistributed profits attributable to ordinary equity holders of the company increased from **RMB 1,473,953 thousand** as of January 1, 2025, to **RMB 1,708,228 thousand** as of June 30, 2025[146](index=146&type=chunk) - General risk reserve increased from **RMB 1,073,607 thousand** as of January 1, 2025, to **RMB 1,080,065 thousand** as of June 30, 2025[146](index=146&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=52&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This statement presents the condensed consolidated cash flows for the six months ended June 30, 2025, and the comparative period in 2024, showing net cash from operating activities turning positive, a significant increase in net cash from investing activities, and net cash from financing activities shifting from inflow to outflow Condensed Consolidated Statement of Cash Flows (RMB thousands) | Item | Jan 1, 2025 to Jun 30, 2025 | Jan 1, 2024 to Jun 30, 2024 | | :--- | :--- | :--- | | Net Cash Generated From/(Used In) Operating Activities | 389,736 | (129,342) | | Net Cash Generated From/(Used In) Investing Activities | 305,507 | (409,316) | | Net Cash (Used In)/Generated From Financing Activities | (850,352) | 613,992 | | Net (Decrease)/Increase in Cash and Cash Equivalents | (155,109) | 75,334 | | Cash and Cash Equivalents at End of Period | 2,086,770 | 2,109,677 | - Net cash from operating activities increased by **RMB 519.08 million** year-on-year[69](index=69&type=chunk) - Net cash from investing activities increased by **RMB 714.83 million** year-on-year[69](index=69&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=53&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated financial statements, covering key information such as basis of preparation, changes in accounting policies, detailed income and expense items, asset and liability composition, cash flows, significant commitments, contingent liabilities, related party transactions, segment reporting, and fair value measurement, offering in-depth background and explanations for understanding the financial statements - The interim financial information is prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the Listing Rules of the Hong Kong Stock Exchange[148](index=148&type=chunk) - For the six months ended June 30, 2025, fee and commission income from securities brokerage business was **RMB 544,618 thousand**, and from underwriting and sponsorship business was **RMB 66,631 thousand**[155](index=155&type=chunk) - As of June 30, 2025, financial assets at fair value through profit or loss totaled **RMB 9,983,470 thousand**, and financial assets at fair value through other comprehensive income totaled **RMB 2,073,637 thousand**[216](index=216&type=chunk) - Segment reporting shows brokerage and wealth management business income of **RMB 950,768 thousand**, investment banking income of **RMB 92,678 thousand**, proprietary trading income of **RMB 475,119 thousand**, and investment management income of **RMB 132,083 thousand**[210](index=210&type=chunk) [Basis of Preparation](index=54&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) [Adoption of New and Revised International Financial Reporting Standards](index=54&type=section&id=2.%20%E6%8E%A1%E7%B4%8D%E6%96%B0%E8%A8%82%E5%8F%8A%E7%B6%93%E4%BF%AE%E8%A8%82%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87) [Fee and Commission Income](index=56&type=section&id=3.%20%E6%89%8B%E7%BA%8C%E8%B2%BB%E5%8F%8A%E4%BD%A3%E9%87%91%E6%94%B6%E5%85%A5) [Interest Income](index=57&type=section&id=4.%20%E5%88%A9%E6%81%AF%E6%94%B6%E5%85%A5) [Net Investment Income](index=57&type=section&id=5.%20%E6%8A%95%E8%B3%87%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) [Other Income and Gains](index=58&type=section&id=6.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) [Fee and Commission Expenses](index=58&type=section&id=7.%20%E6%89%8B%E7%BA%8C%E8%B2%BB%E5%8F%8A%E4%BD%A3%E9%87%91%E6%94%AF%E5%87%BA) [Interest Expenses](index=59&type=section&id=8.%20%E5%88%A9%E6%81%AF%E6%94%AF%E5%87%BA) [Staff Costs](index=59&type=section&id=9.%20%E5%93%A1%E5%B7%A5%E6%88%90%E6%9C%AC) [Depreciation and Amortization](index=60&type=section&id=10.%20%E6%8A%98%E8%88%8A%E5%8F%8A%E6%94%A4%E9%8A%B7) [Other Operating Expenses](index=60&type=section&id=11.%20%E5%85%B6%E4%BB%96%E7%B6%93%E7%87%9F%E6%94%AF%E5%87%BA) [Asset Impairment Losses, Net](index=61&type=section&id=12.%20%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E6%90%8D%E5%A4%B1%EF%BC%8C%E6%B7%A8%E9%A1%8D) [Income Tax Expense](index=61&type=section&id=13.%20%E6%89%80%E5%BE%97%E7%A8%85%E6%94%AF%E5%87%BA) [Earnings Per Share](index=62&type=section&id=14.%20%E6%AF%8F%E8%82%A1%E6%94%B6%E7%9B%8A) [Property and Equipment](index=62&type=section&id=15.%20%E7%89%A9%E6%A5%AD%E5%8F%8A%E8%A8%AD%E5%82%99) [Right-of-Use Assets](index=62&type=section&id=16.%20%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) [Other Non-Current Assets](index=63&type=section&id=17.%20%E5%85%B6%E4%BB%96%E9%9D%9E%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2) [Amounts Due from Margin Clients](index=64&type=section&id=18.%20%E6%87%89%E6%94%B6%E8%9E%8D%E8%B3%87%E5%AE%A2%E6%88%B6%E6%AC%BE%E9%A0%85) [Other Current Assets](index=65&type=section&id=19.%20%E5%85%B6%E4%BB%96%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2) [Loans to a Financial Institution](index=67&type=section&id=20.%20%E5%90%91%E4%B8%80%E9%96%93%E9%87%91%E8%9E%8D%E6%A9%9F%E6%A7%8B%E6%8B%86%E5%87%BA%E8%B3%87%E9%87%91) [Financial Assets Purchased Under Resale Agreements](index=68&type=section&id=21.%20%E8%B2%B7%E5%85%A5%E8%BF%94%E5%94%AE%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) [Financial Assets at Fair Value Through Other Comprehensive Income](index=69&type=section&id=22.%20%E4%BB%A5%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) [Financial Assets at Fair Value Through Profit or Loss](index=70&type=section&id=23.%20%E4%BB%A5%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E7%95%B6%E6%9C%9F%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) [Cash Held on Behalf of Brokerage Clients](index=70&type=section&id=24.%20%E4%BB%A3%E7%B6%93%E7%B4%80%E6%A5%AD%E5%8B%99%E5%AE%A2%E6%88%B6%E6%8C%81%E6%9C%89%E7%9A%84%E7%8F%BE%E9%87%91) [Cash and Cash Equivalents](index=71&type=section&id=25.%20%E7%8F%BE%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E7%AD%89%E5%83%B9%E7%89%A9) [Debt Instruments](index=71&type=section&id=26.%20%E5%82%B5%E5%8B%99%E5%B7%A5%E5%85%B7) [Accounts Payable to Brokerage Clients](index=76&type=section&id=27.%20%E6%87%89%E4%BB%98%E7%B6%93%E7%B4%80%E6%A5%AD%E5%8B%99%E5%AE%A2%E6%88%B6%E8%B3%B4%E6%AC%BE) [Other Liabilities](index=77&type=section&id=28.%20%E5%85%B6%E4%BB%96%E8%B2%A0%E5%80%B5) [Financial Assets Sold Under Repurchase Agreements](index=78&type=section&id=29.%20%E8%B3%A3%E5%87%BA%E5%9B%9E%E8%B3%BC%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E6%AC%BE) [Share Capital](index=79&type=section&id=30.%20%E8%82%A1%E6%9C%AC) [Commitments](index=79&type=section&id=31.%20%E6%89%BF%E6%93%94) [Provisions for Compensation and Litigation Claims](index=81&type=section&id=32.%20%E8%B3%A0%E5%84%9F%E8%A8%88%E6%8F%90%E5%8F%8A%E8%A8%B4%E8%A8%9F%E8%B3%A0%E5%84%9F%E6%AC%BE) [Related Party Transactions and Balances](index=82&type=section&id=33.%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93%E5%8F%8A%E9%A4%98%E9%A1%8D) [Segment Reporting](index=84&type=section&id=34.%20%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) [Fair Value Measurement](index=87&type=section&id=35.%20%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F) [Approval of Financial Statements](index=93&type=section&id=36.%20%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E6%A0%B8%E5%87%86)

FF301 本月底法定/註冊股本總額： RMB 2,604,567,412 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 恒投證券 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 其他類別 (請註明) | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | N/A | 說明 | 內資股 | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,153,721,412 RMB | | | 1 RMB | | 2,153,721,412 | | 增加 / 減少 (-) | | | | | | RMB | | | | 本月底結存 | | | 2,153,721,412 RMB | | | 1 RMB | | 2,1 ...

Group 1 - The "Second Golden Unicorn Best Investment Advisor Selection" event is currently ongoing, organized by Sina Finance in collaboration with Yinhua Fund, aiming to identify outstanding investment advisors and enhance the investment advisory IP construction [1] - The monthly ranking data for August shows that the top investment advisor in the public fund simulation configuration group is Wu Dayao from Guoyuan Securities, achieving a monthly return of 31.32% [1][2] - The second and third positions are held by Hong Xiaowei from Founder Securities with a return of 26.25% and Zhang Kun from GF Securities with a return of 23.07% respectively [1][2] Group 2 - The top 100 rankings for the public fund simulation configuration group for August include notable advisors such as Zhang Yefeng from Guotai Junan Securities with a return of 22.88% and Liu Jiafeng from Guoxin Securities with a return of 21.04% [2][3] - The performance of the top advisors indicates a competitive environment in the investment advisory sector, with several advisors achieving returns above 20% [2][3] - The rankings reflect the effectiveness of different investment strategies employed by various advisors across multiple securities firms [1][2]

Core Viewpoint - 恒泰证券 has shown significant financial recovery in the first half of 2025, with a notable increase in net profit and revenue compared to the previous year, indicating a positive turnaround under the leadership of its current chairman, Zhu Yanhui [1][4]. Financial Performance - The net profit attributable to shareholders for the first half of 2025 is approximately 241 million RMB, representing a 346.86% increase year-on-year [1]. - Total operating revenue, including interest and investment income, is about 1.67 billion RMB, reflecting a year-on-year growth of 42.45% [1]. - The net cash generated from operating activities is around 390 million RMB, showing a substantial increase of 401.32% compared to the previous year [1]. - The return on equity (ROE) stands at 2.86%, a significant increase of 2.19 percentage points year-on-year [1]. Revenue Structure - The revenue breakdown includes commission income of 839 million RMB, interest income of 353 million RMB, net investment income of 259 million RMB, and other income of 215 million RMB [4]. - The total profit for the first half of 2025 is 314 million RMB, with net profit attributable to shareholders at 241 million RMB [4]. Management Changes - Zhu Yanhui has been the chairman since December 2022, and under his leadership, the company has seen a continuous improvement in net profit after a period of losses from 2020 to 2022 [2][5]. - The management transition has been rapid, with Zhu Yanhui also taking on the role of acting president shortly after his appointment [5]. Shareholder Structure - In September 2022, Tianfeng Securities transferred a 9.5754% stake in 恒泰证券 to Beijing Huarong Comprehensive Investment Co., Ltd., marking a shift in the major shareholder to a state-owned entity [5][10]. - Beijing Huarong, a subsidiary of Beijing Financial Street Group, currently holds 21.88% of the shares, indicating a strong state-owned background in the company's ownership structure [10]. Challenges and Compliance Issues - Despite the recovery, 恒泰证券 faces structural challenges, including high sensitivity to investment volatility, with significant unrealized gains contributing to profits [12]. - The company has also encountered compliance issues, as evidenced by a recent penalty from the Shanxi Securities Regulatory Bureau for improper business incentive distribution, highlighting the need for improved internal controls [12].

Core Viewpoint - The second "Golden Kylin Best Investment Advisor" selection is underway, focusing on identifying outstanding investment advisors in wealth management, with various competitions including stock simulation trading and public fund simulation allocation [1]. Group 1: Stock Simulation Trading - The top performer in the stock simulation trading for the week of August 18 to August 24 is Huang Rui from Nanjing Securities, achieving a weekly return of 18.73% [2]. - Lin Yanyu from China Merchants Securities ranks second with a return of 17.90%, while Chen Bingyin from Guosheng Securities comes in third with a return of 16.21% [2]. Group 2: ETF Simulation Trading - In the ETF simulation trading group, Zhang Yefeng from Guotai Haitong Securities leads with a weekly return of 15.68%, followed by Hong Xiaowei from Founder Securities with 15.62%, and Sheng Shaopeng from Everbright Securities with 13.54% [3][4]. Group 3: Public Fund Simulation Allocation - The top performer in the public fund simulation allocation is Hong Xiaowei from Founder Securities with a return of 14.18%, closely followed by Wu Dayao from Guoyuan Securities at 14.15%, and Zhang Kun from GF Securities at 13.38% [6]. - Zhang Yefeng from Guotai Haitong Securities also participated in this category, achieving a return of 10.05% [6]. Group 4: Social IP Service Evaluation - In the social IP service evaluation, Lin Doucan from Huayuan Securities, Li Hui from Western Securities, and Wang Hantang from Huaan Securities are the top three performers [6].

Core Insights - The company reported total operating income of RMB 1.666 billion for the six months ending June 30, 2025, representing a year-on-year increase of 42.45% [1] - Profit attributable to ordinary shareholders reached RMB 241 million, a significant increase of 346.86% year-on-year, with earnings per share at RMB 0.0924 [1] Business Development - The company has adjusted and improved its organizational structure, enhancing the support and empowerment role of its headquarters for branch institutions [1] - There is a focus on deepening online service capabilities, aiming to upgrade traditional marketing models to digital and intelligent formats [1] - The company is committed to establishing a tiered service system for wealth management clients and expanding multi-channel customer acquisition methods [1] Customer Growth and Performance - During the reporting period, the company opened 143,900 new accounts, bringing the total customer base to 4.1189 million, a growth of 3.21% compared to the end of 2024 [1] - Total customer custody assets reached RMB 189.284 billion, reflecting a growth of 5.55% from the end of 2024 [1] - The trading volume of stock-based funds was RMB 1.375839 trillion, an increase of 65.04% year-on-year, with a market share of 0.3645%, up 0.64% from the same period in 2024 [1]

Core Insights - The company reported total operating income of RMB 1.666 billion for the six months ending June 30, 2025, representing a year-on-year increase of 42.45% [1] - Profit attributable to ordinary shareholders reached RMB 241 million, a significant year-on-year increase of 346.86% [1] - Earnings per share stood at RMB 0.0924 [1] Business Development - The company has adjusted and improved its organizational structure, enhancing the support and empowerment role of its headquarters for branch offices [1] - There is a focus on deepening online service capabilities, aiming to upgrade traditional marketing models to digital and intelligent formats [1] - The company is committed to establishing a tiered service system for wealth management clients and expanding multi-channel customer acquisition methods [1] Customer Growth and Performance - The company opened 143,900 new accounts, bringing the total customer base to 4.1189 million, a growth of 3.21% compared to the end of 2024 [1] - Total customer custody assets reached RMB 189.284 billion, reflecting a growth of 5.55% from the end of 2024 [1] - The trading volume of stock-based funds was RMB 1.375839 trillion, an increase of 65.04% year-on-year [1] - The market share of stock-based funds stood at 0.3645%, up by 0.64% compared to the same period in 2024 [1]

Group 1 - The core point of the article is that 恒投证券 (Hengtou Securities) reported significant growth in its financial performance for the six months ending June 30, 2025, with total operating revenue reaching 1.666 billion RMB, representing a year-on-year increase of 42.45% [1] - The company's profit for the same period was 241 million RMB, showing a remarkable year-on-year growth of 346.86% [1] - The basic earnings per share for 恒投证券 was reported at 0.0924 RMB per share [1]

[Important Notice](index=3&type=section&id=Important%20Notice) The Board, Supervisory Committee, and senior management guarantee the interim report's accuracy, reviewed by Grant Thornton (Hong Kong) and presented in RMB, with forward-looking statement risk reminders [Overview](index=3&type=section&id=Important%20Notice-Overview) The Board, Supervisory Committee, and senior management guarantee the interim report's accuracy, reviewed by Grant Thornton (Hong Kong) and presented in RMB, with forward-looking statement risk reminders - Report content guaranteed by Board, Supervisory Committee, and senior management, approved by relevant meetings[7](index=7&type=chunk) - Interim financial information reviewed by Grant Thornton (Hong Kong) Limited in accordance with HKSRS 2410[7](index=7&type=chunk) - Data presented in **RMB** unless otherwise specified[7](index=7&type=chunk) - Forward-looking statements regarding future plans and strategies do not constitute a substantive commitment to investors, who are reminded of investment risks[9](index=9&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section defines key terms used in the report, covering company names, shareholders, subsidiaries, regulatory bodies, financial products, and business activities for clear understanding [Key Terms](index=4&type=section&id=Section%20I%20Definitions-Key%20Terms) This section defines key terms used in the report, covering company names, shareholders, subsidiaries, regulatory bodies, financial products, and business activities for clear understanding - "The Company", "Company", "Hengtou Securities" refers to the joint-stock company established in China on December 28, 1998, approved to operate in Hong Kong under the name "Hengtou Securities" on April 27, 2015, with its H shares listed on the Main Board of the Hong Kong Stock Exchange[10](index=10&type=chunk) - "End of the Reporting Period" refers to **June 30, 2025**, and "Reporting Period" refers to the **six months ended June 30, 2025**[10](index=10&type=chunk)[13](index=13&type=chunk) - Major subsidiaries include Hengtai Capital Investment Co., Ltd., Hengtai Changcai Securities Co., Ltd., Hengtai Futures Co., Ltd., Hengtai Pioneer Investment Co., Ltd., and Xinhua Fund Management Co., Ltd[12](index=12&type=chunk)[13](index=13&type=chunk) - "Margin Financing and Securities Lending" is defined as the business activity of lending funds to clients for purchasing listed securities or lending listed securities for selling, and collecting collateral[13](index=13&type=chunk) [Section II Company Profile](index=8&type=section&id=Section%20II%20Company%20Profile) This section provides the company's basic information, including names, board and supervisory committee composition, specialized committees, secretaries, authorized representatives, addresses, website, email, and auditors [Basic Information](index=8&type=section&id=Section%20II%20Company%20Profile-Basic%20Information) This section provides the company's basic information, including names, board and supervisory committee composition, specialized committees, secretaries, authorized representatives, addresses, website, email, and auditors - The company's Chinese name is Hengtai Securities Co., Ltd., operating in Hong Kong under the name "Hengtou Securities"[17](index=17&type=chunk) - The Board of Directors consists of **1 executive director** (Mr. Zhu Yanhui as Chairman), **5 non-executive directors**, and **3 independent non-executive directors**[18](index=18&type=chunk) - The Board has four specialized committees: Strategy and Investment Decision Committee, Risk Control and Supervision Committee, Audit Committee, and Remuneration and Nomination Committee[18](index=18&type=chunk) - The company's auditors are Grant Thornton (Hong Kong) Limited (International) and Grant Thornton (Special General Partnership) (Domestic)[23](index=23&type=chunk) [Section III Summary of Accounting Data and Financial Indicators](index=11&type=section&id=Section%20III%20Summary%20of%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved significant performance growth, with total operating revenue up **42.45%** and profit attributable to ordinary equity holders up **346.86%**, indicating a robust financial position [Key Accounting Data and Financial Indicators](index=11&type=section&id=Section%20III%20Summary%20of%20Accounting%20Data%20and%20Financial%20Indicators-Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved significant performance growth, with total operating revenue up **42.45%** and profit attributable to ordinary equity holders up **346.86%**, indicating a robust financial position Key Accounting Data and Financial Indicators (For the six months ended June 30, 2025) | 項目 | 2025年1月1日至2025年6月30日 (RMB '000) | 2024年1月1日至2024年6月30日 (RMB '000) | 本期比上期增長╱（下降） | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,665,642 | 1,169,284 | 42.45% | | Profit Before Tax | 314,359 | 75,098 | 318.60% | | Profit for the Period Attributable to Ordinary Equity Holders of the Company | 240,733 | 53,872 | 346.86% | | Net Cash Generated From/(Used In) Operating Activities | 389,736 | (129,342) | 401.32% | | Basic Earnings Per Share (RMB/share) | 0.0924 | 0.0207 | 346.38% | | Diluted Earnings Per Share (RMB/share) | 0.0924 | 0.0207 | 346.38% | | Weighted Average Return on Net Assets (%) | 2.86 | 0.67 | 增加2.19個百分點 | Scale Indicators (As of June 30, 2025) | 項目 | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | 本期末比上年期末增長╱（下降） | | :--- | :--- | :--- | :--- | | Total Assets | 43,186,520 | 39,981,081 | 8.02% | | Total Liabilities | 34,261,815 | 31,274,058 | 9.55% | | Accounts Payable to Brokerage Clients | 20,121,543 | 16,700,618 | 20.48% | | Equity Attributable to Ordinary Equity Holders and Holders of Perpetual Capital Securities | 8,544,448 | 8,295,533 | 3.00% | | Total Share Capital ('000 shares) | 2,604,567 | 2,604,567 | 0.00% | | Net Assets Per Share Attributable to Ordinary Equity Holders (RMB/share) | 3.28 | 3.18 | 3.14% | | Asset-Liability Ratio (%) | 61.31 | 62.60 | 減少1.29個百分點 | [The Company's Net Capital and Other Risk Control Indicators](index=14&type=section&id=Section%20III%20Summary%20of%20Accounting%20Data%20and%20Financial%20Indicators-The%20Company%27s%20Net%20Capital%20and%20Other%20Risk%20Control%20Indicators) As of June 30, 2025, net capital decreased to **RMB 5,615.40 million**, but all risk control indicators met regulatory requirements, demonstrating sound risk management Net Capital and Risk Control Indicators (RMB '000) | 項目 | 2025年6月30日 | 2024年12月31日 | 監管標準 | | :--- | :--- | :--- | :--- | | Net Capital | 5,615,398 | 5,903,665 | Not applicable | | Of which: Core Net Capital | 5,465,398 | 5,153,665 | Not applicable | | Subordinate Net Capital | 150,000 | 750,000 | Not applicable | | Net Assets | 8,547,167 | 8,274,815 | Not applicable | | Sum of Various Risk Capital Reserves | 3,411,162 | 3,359,516 | Not applicable | | Risk Coverage Ratio | 164.62% | 175.73% | ≥100% | | Capital Leverage Ratio | 24.85% | 23.62% | ≥8% | | Liquidity Coverage Ratio | 175.47% | 182.28% | ≥100% | | Net Stable Funding Ratio | 164.45% | 173.37% | ≥100% | | Net Capital/Net Assets | 65.70% | 71.34% | ≥20% | | Net Capital/Liabilities | 43.31% | 44.21% | ≥8% | | Net Assets/Liabilities | 65.92% | 61.97% | ≥10% | | Proprietary Equity Securities and Derivatives/Net Capital | 19.39% | 22.61% | ≤100% | | Proprietary Non-Equity Securities and Derivatives/Net Capital | 166.21% | 147.18% | ≤500% | - As of June 30, 2025, the Company's net capital was **RMB 5,615.40 million**, a decrease of **RMB 288.27 million** from the end of 2024[36](index=36&type=chunk) - During the reporting period, all risk control indicators, including net capital, met regulatory requirements[36](index=36&type=chunk) [Section IV Management Discussion and Analysis](index=15&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis) This section analyzes the economic environment, market conditions, main business operations, financial performance, future outlook, and risk management strategies during the reporting period [Economic Environment and Market Conditions During the Reporting Period](index=15&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Economic%20Environment%20and%20Market%20Conditions%20During%20the%20Reporting%20Period) In H1 2025, China's economy remained stable with **5.30% GDP growth**, while the A-share market showed an upward trend with significantly increased trading activity - In the first half of 2025, China's GDP grew by **5.30%** year-on-year[39](index=39&type=chunk) - In the first half of 2025, national industrial value added above designated size increased by **6.40%** year-on-year, service industry value added increased by **5.50%** year-on-year, and total retail sales of consumer goods increased by **5.00%** year-on-year[39](index=39&type=chunk) - During the reporting period, China's A-share market showed an upward trend, with the Shanghai Composite Index rising by **2.76%**, the Shenzhen Component Index by **0.48%**, and the ChiNext Index by **0.53%**[40](index=40&type=chunk) - The total trading volume of stocks and funds in Shanghai and Shenzhen markets amounted to **RMB 188.78 trillion**, an increase from the same period in 2024, with Shanghai increasing by **50.80%** and Shenzhen by **76.35%**[40](index=40&type=chunk) [Analysis of Main Business Operations](index=16&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations) The Group achieved substantial growth in operating revenue and net profit, with strong performance in brokerage, investment banking, and proprietary trading, while investment management revenue decreased Group Operating Performance (For the six months ended June 30, 2025) | 指标 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,665.64 | 1,169.28 | 42.45% | | Net Profit | 209.50 | 18.99 | 1,003.21% | [Brokerage and Wealth Management Business](index=16&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations-Brokerage%20and%20Wealth%20Management%20Business) Brokerage and wealth management revenue grew **36.19%** to **RMB 950.77 million**, driven by expanded client base, increased AUM, and robust financial product sales Brokerage and Wealth Management Business Operating Revenue | 业务 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 950.77 | 698.13 | 36.19% | - The securities brokerage business opened **143,900 new accounts**, bringing the total client count to **4.1189 million**, a **3.21%** increase from the end of 2024; total client assets under management reached **RMB 189,284.21 million**, an increase of **5.55%**[43](index=43&type=chunk) - Stock and fund trading volume was **RMB 1,375,839.14 million**, a **65.04%** increase from the same period in 2024; market share for stocks and funds was **0.03645%**, an increase of **0.00064%** from the same period in 2024[43](index=43&type=chunk) - The wealth management business sold **2,346 financial products**, with a sales scale of **RMB 9,019.66 million**; as of the end of the reporting period, the financial product holding scale was **RMB 19,478.06 million**[46](index=46&type=chunk) - The capital intermediary business's margin financing and securities lending balance was **RMB 5,500.31 million**[47](index=47&type=chunk) - The total scale of asset custody, fund services, and fundraising supervision was **RMB 115,050 million**[48](index=48&type=chunk) [Investment Banking Business](index=18&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations-Investment%20Banking%20Business) Investment banking revenue grew **41.54%** to **RMB 92.68 million**, with progress in equity financing, bond financing, and NEEQ listing recommendations Investment Banking Business Operating Revenue | 业务 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 92.68 | 65.48 | 41.54% | - Equity financing completed **1 financial advisory project** for a listed company, with multiple refinancing and M&A restructuring projects steadily advancing[50](index=50&type=chunk) - Bond financing completed **24 corporate bond projects**, with a total underwriting scale of **RMB 5,652 million**[51](index=51&type=chunk) - NEEQ listing recommendation business completed **1 declaration project** and **4 financing projects**; as of the end of the reporting period, there were **132 ongoing supervision projects**[52](index=52&type=chunk) [Investment Management Business](index=19&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations-Investment%20Management%20Business) Investment management revenue decreased **12.85%** to **RMB 132.08 million** due to AUM decline, despite good fixed-income product performance and Xinhua Fund's AUM growth Investment Management Business Operating Revenue | 业务 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 132.08 | 151.56 | -12.85% | - Total asset management scale was **RMB 15,333.40 million**, including collective asset management plans of **RMB 3,763.53 million**, single asset management plans of **RMB 2,389.28 million**, and asset-backed securities special plans of **RMB 9,180.59 million**[55](index=55&type=chunk) - Xinhua Fund managed **47 public funds**, with an AUM of **RMB 53,206 million**, a **7.68%** year-on-year increase[57](index=57&type=chunk) - Hengtai Capital managed **2 private equity funds**, with a fund management scale of **RMB 2,900 million**[58](index=58&type=chunk) - Hengtai Pioneer directly invested in **22 projects**[59](index=59&type=chunk) [Proprietary Trading Business](index=21&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations-Proprietary%20Trading%20Business) Proprietary trading revenue grew **102.99%** to **RMB 475.12 million**, achieving strong returns from equity, fixed-income, and multi-strategy investments in A-share and Beijing Stock Exchange markets Proprietary Trading Business Operating Revenue | 业务 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 475.12 | 234.06 | 102.99% | - Equity investment business achieved stable dividend and growth returns by building a multi-layered equity investment system, focusing on core assets, high-dividend stocks, and growth assets[61](index=61&type=chunk) - Fixed-income business captured trading opportunities amidst bond market volatility, reduced long-duration bond positions, increased allocation to high-grade credit bonds, and actively engaged in interest rate derivative trading, yielding good returns[62](index=62&type=chunk) - Multi-strategy investment business capitalized on high-elasticity opportunities in the Beijing Stock Exchange market, increasing equity exposure, and made preliminary preparations for commodity futures investments[62](index=62&type=chunk) [Outlook and Future Plans](index=22&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Outlook%20and%20Future%20Plans) The company anticipates deepening capital market reforms and accelerated industry consolidation, planning to enhance governance, risk control, and operational efficiency, while driving business transformation and leveraging financial technology for differentiated advantages - Capital market reforms continue to deepen, and securities industry consolidation is accelerating, with leading securities firms expected to integrate faster, while small and medium-sized firms need to adopt differentiated operating strategies[63](index=63&type=chunk)[64](index=64&type=chunk) - The securities industry's traditional brokerage business is accelerating its transformation towards a buyer-side investment advisory model, investment banking will focus on "five major articles" guidance, and asset management will revolve around structural optimization, capability upgrading, and differentiated competition[64](index=64&type=chunk) - The company will continuously enhance business capabilities, promote transformation and upgrading, accelerate the construction of its business brand system, strengthen financial technology empowerment, improve client service capabilities, and develop segmented business capabilities to form differentiated competitive advantages[65](index=65&type=chunk) - Future plans include deepening refined client operations, strengthening investment advisory business development, exploring new proprietary trading profit models (such as options, ETF arbitrage, convertible bond investments), enriching asset management product strategies, and focusing investment banking business on new energy, new technology, and high-end manufacturing industries[65](index=65&type=chunk) [Financial Statement Analysis](index=24&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Financial%20Statement%20Analysis) The Group's profitability significantly improved, with substantial growth in total operating revenue and net profit attributable to shareholders, while asset and liability structures remained stable, and operating cash flow turned positive Profitability Indicators (For the six months ended June 30, 2025) | 指标 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,665.64 | 1,169.28 | 42.45% | | Net Profit Attributable to Ordinary Equity Holders of the Company | 240.73 | 53.87 | 346.86% | | Earnings Per Share (RMB) | 0.0924 | 0.0207 | 346.38% | | Weighted Average Return on Net Assets (%) | 2.86 | 0.67 | 增加2.19个百分点 | Asset and Liability Situation (As of June 30, 2025) | 指标 | 2025年6月30日 (RMB million) | 2024年12月31日 (RMB million) | 变化 | | :--- | :--- | :--- | :--- | | Total Assets | 43,186.52 | 39,981.08 | 增长8.02% | | Total Liabilities | 34,261.82 | 31,274.06 | 增长9.55% | | Equity Attributable to Ordinary Equity Holders and Holders of Perpetual Capital Securities | 8,544.45 | 8,295.53 | 增长3.00% | | Asset-Liability Ratio (%) | 61.31 | 62.60 | 减少1.29个百分点 | | Financial Leverage Ratio | 2.70 | 2.81 | 下降3.91% | - The asset structure remained stable, with cash assets accounting for **54.66%**, financing assets for **13.40%**, and financial investment assets for **27.92%**[67](index=67&type=chunk) - The company diversified its debt financing channels through issuing income certificates, re-lending, and borrowing subordinated debt, and obtained substantial comprehensive credit lines from multiple banks[70](index=70&type=chunk) Cash Flow Movement (For the six months ended June 30, 2025) | 现金流类型 | 2025年 (RMB million) | 2024年 (RMB million) | 同比变化 (RMB million) | | :--- | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 389.74 | -129.34 | 增加519.08 | | Net Cash From/(Used In) Investing Activities | 305.51 | -409.32 | 增加714.83 | | Net Cash From/(Used In) Financing Activities | -850.35 | 613.99 | 减少1,464.34 | | Cash and Cash Equivalents at End of Period | 2,086.77 | 2,109.68 | 减少22.91 | - During the reporting period, there were no changes to the Company's major accounting policies[73](index=73&type=chunk) [Branches and Subsidiaries](index=26&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Branches%20and%20Subsidiaries) The company had **7 branches** and **102 brokerage offices**, with relocations, upgrades, and changes in registered capital or legal representatives for key subsidiaries - As of the end of the reporting period, the company had a total of **7 branches** and **102 securities brokerage offices**[74](index=74&type=chunk) - During the reporting period, **5 securities brokerage offices** completed relocation, with no new establishments or cancellations[75](index=75&type=chunk) - **4 securities brokerage offices** were upgraded to branches, including Shandong Branch, Shanghai First Branch, Shanghai Second Branch, and Zhejiang Branch[76](index=76&type=chunk) - Hengtai Futures completed a change in registered capital, from **RMB 125 million** to **RMB 228.0303 million**[79](index=79&type=chunk) - Xinhua Fund completed a change in registered capital, from **RMB 217.50 million** to **RMB 627.756410 million**, with the Company's shareholding ratio changing from **58.62%** to **52.99%**[79](index=79&type=chunk) [Significant Financing Activities](index=28&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Significant%20Financing%20Activities) No equity financing occurred; debt financing included **RMB 1.35 billion** in income certificates and **RMB 150 million** in subordinated debt, with outstanding balances of **RMB 1.58 billion**, **RMB 1.50 billion**, and **RMB 1.95 billion** respectively - During the reporting period, the company had no equity financing[77](index=77&type=chunk) Issuance of Income Certificates (For the six months ended June 30, 2025) | 名称 | 发行规模 (RMB hundred million) | 发行利率 | 期限 (天) | 发行日 | 到期日 | | :--- | :--- | :--- | :--- | :--- | :--- | | Hengchuang Taifu No. 59 | 3.00 | 2.30% | 91 | 2025-1-22 | 2025-4-23 | | Hengchuang Taifu No. 60 | 4.00 | 2.80% | 356 | 2025-2-11 | 2026-2-2 | | Hengchuang Taifu No. 61 | 3.00 | 2.40% | 91 | 2025-3-28 | 2025-6-27 | | Hengchuang Taifu No. 62 | 3.00 | 2.40% | 90 | 2025-4-29 | 2025-7-28 | | Hengfu No. 41 | 0.50 | 2.60% | 347 | 2025-6-13 | 2026-5-26 | - During the reporting period, the company raised a total of **RMB 1.35 billion** through the issuance of income certificates; as of June 30, 2025, the outstanding balance of unexpired income certificates was **RMB 1.58 billion**[78](index=78&type=chunk) - During the reporting period, the company did not issue subordinated bonds; as of June 30, 2025, the outstanding balance of unexpired subordinated bonds was **RMB 1.50 billion**[81](index=81&type=chunk) - During the reporting period, the company did not issue corporate bonds; as of June 30, 2025, the outstanding balance of unexpired corporate bonds was **RMB 1.95 billion**[82](index=82&type=chunk) Borrowing of Subordinated Debt (For the six months ended June 30, 2025) | 名称 | 借入规模 (RMB hundred million) | 借款利率 | 期限 (年) | 起息日 | 到期日 | | :--- | :--- | :--- | :--- | :--- | :--- | | Subordinated Debt | 1.50 | 4.00% | 5 | 2025-5-15 | 2030-5-14 | - During the reporting period, the company borrowed a total of **RMB 150 million** in subordinated debt; as of June 30, 2025, the outstanding balance of unexpired subordinated debt was **RMB 150 million**[83](index=83&type=chunk) [Significant Investment Activities](index=29&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Significant%20Investment%20Activities) During the reporting period, the company did not engage in any significant investment activities - During the reporting period, there were no significant investment activities[84](index=84&type=chunk) [Significant Asset Acquisitions, Disposals, External Guarantees, Mortgages, Pledges, and Significant Contingent Liabilities](index=30&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Significant%20Asset%20Acquisitions%2C%20Disposals%2C%20External%20Guarantees%2C%20Mortgages%2C%20Pledges%2C%20and%20Significant%20Contingent%20Liabilities) No significant asset acquisitions, disposals, or mergers occurred; no major contingent liabilities, but counter-guarantees for Xinhua Fund and pledged properties/subsidiary equity were in place - During the reporting period, the Company did not engage in any significant asset acquisitions, disposals, or corporate mergers; nor did it incur any significant contingent liabilities or other matters affecting its financial position and operating results[85](index=85&type=chunk) - The company provided a counter-guarantee for Xinhua Fund, pledging residential property in Building 2, Unit 1, Courtyard 6, Dongjing Road, Xicheng District, Beijing (appraised value approximately **RMB 130 million**) and the Manshi Shangdu office and commercial complex on Hailaer East Street, Xincheng District, Hohhot, Inner Mongolia Autonomous Region (appraised value approximately **RMB 120 million**) to Financial Street Investment as collateral[86](index=86&type=chunk)[87](index=87&type=chunk) - **50% equity** and derivative interests of Hengtai Changcai (a wholly-owned subsidiary of the Company) (appraised value approximately **RMB 550 million**) were also used as collateral[87](index=87&type=chunk) [Risk Management](index=31&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Risk%20Management) The company established a comprehensive risk management system covering credit, market, liquidity, compliance, operational, and reputational risks, ensuring regulatory compliance and continuous enhancement - The main risks in the company's operations include credit risk, market risk, liquidity risk, compliance risk, operational risk, and reputational risk[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) - The company has established and regularly revises systems such as the "Hengtai Securities Co., Ltd. Comprehensive Risk Management Measures" and the "Hengtai Securities Co., Ltd. Risk Management Culture Manual"[96](index=96&type=chunk) - The company has established a four-level risk management system including the Board of Directors, Party Committee, management, risk management functional departments, and business departments, and has incorporated all subsidiaries into the comprehensive risk management system[97](index=97&type=chunk) - The company has established a risk appetite indicator system centered on net capital and liquidity, covering market risk, credit risk, operational risk, and concentration risk[99](index=99&type=chunk) - The company's Risk Management Department has established professional teams in four secondary departments: market risk, credit risk, operational risk, and comprehensive risk, with risk management personnel having over three years of relevant work experience accounting for over **2%** of all headquarters employees[101](index=101&type=chunk) - The company has established working mechanisms such as dynamic net capital monitoring, risk authorization, regular risk reporting, regular stress testing, and risk scheduling meetings, and has developed emergency response plans for major risks and emergencies[102](index=102&type=chunk) [Section V Other Important Matters](index=36&type=section&id=Section%20V%20Other%20Important%20Matters) This section covers profit distribution, share option plans, significant litigation, auditor appointments, corporate governance code compliance, company governance, and directors' and supervisors' securities trading and share acquisition rights [Profit Distribution and Profit Distribution Plan](index=36&type=section&id=Section%20V%20Other%20Important%20Matters-Profit%20Distribution%20and%20Profit%20Distribution%20Plan) The company's 2024 profit distribution plan involved no distribution, and there is no plan for H1 2025 - The Company's 2024 profit distribution plan was to make no profit distribution, which was approved at the Annual General Meeting on May 16, 2025[103](index=103&type=chunk) - The Company has no profit distribution plan for the first half of 2025[103](index=103&type=chunk) [Share Option Schemes or Equity Incentive Plans](index=36&type=section&id=Section%20V%20Other%20Important%20Matters-Share%20Option%20Schemes%20or%20Equity%20Incentive%20Plans) During the reporting period, the company had no share option schemes or equity incentive plans, nor any implementation thereof - During the reporting period, the company had no share option schemes or equity incentive plans, nor any implementation thereof[104](index=104&type=chunk) [Significant Litigation and Arbitration Matters](index=36&type=section&id=Section%20V%20Other%20Important%20Matters-Significant%20Litigation%20and%20Arbitration%20Matters) No new significant litigation or arbitration occurred; a previous dispute saw the Supreme People's Court overturn a first-instance ruling and remand the case for retrial - During the reporting period, there were no new significant litigation or arbitration matters[105](index=105&type=chunk) - In the dispute concerning the Qinghui Leasing Phase I Asset-Backed Special Plan managed by the company, the Supreme People's Court, on June 30, 2025, overturned the first-instance ruling and instructed the Beijing High People's Court to hear the case[109](index=109&type=chunk) - The case involves the company suing Qinghui Leasing and Hongyuan Petrochemical in 2018, with total claims amounting to approximately **RMB 530 million**[107](index=107&type=chunk) [Appointment of Auditors](index=37&type=section&id=Section%20V%20Other%20Important%20Matters-Appointment%20of%20Auditors) The company re-appointed Grant Thornton (Special General Partnership) as its 2025 domestic auditor and Grant Thornton (Hong Kong) Limited as its 2025 international auditor - The Company re-appointed Grant Thornton (Special General Partnership) as its 2025 domestic auditor[110](index=110&type=chunk) - The Company re-appointed Grant Thornton (Hong Kong) Limited as its 2025 international auditor[110](index=110&type=chunk) [Compliance with Corporate Governance Code](index=37&type=section&id=Section%20V%20Other%20Important%20Matters-Compliance%20with%20Corporate%20Governance%20Code) The company strictly complied with all Corporate Governance Code provisions and will continue to review and enhance its corporate governance practices - During the reporting period, the Company strictly complied with all code provisions contained in Part Two of the Corporate Governance Code[111](index=111&type=chunk) - The company will continue to review and enhance its corporate governance practices to ensure compliance with the Corporate Governance Code[111](index=111&type=chunk) [Corporate Governance Status](index=38&type=section&id=Section%20V%20Other%20Important%20Matters-Corporate%20Governance%20Status) Shareholders held **3 meetings**, the Board held **5 meetings** reviewing **27 proposals**, and specialized committees operated normally; the Supervisory Committee held **1 meeting**, reviewing **7 proposals** - During the reporting period, the General Meeting of Shareholders held **3 meetings**[112](index=112&type=chunk) - The Board of Directors consists of **9 directors** and has four specialized committees: Strategy and Investment Decision Committee, Risk Control and Supervision Committee, Audit Committee, and Remuneration and Nomination Committee[113](index=113&type=chunk) - During the reporting period, the Board of Directors held **5 meetings**, reviewing **27 proposals**; all specialized committees also held meetings[114](index=114&type=chunk) - The Supervisory Committee consists of **3 supervisors** and held **1 meeting** during the reporting period, reviewing **7 proposals**[118](index=118&type=chunk) [Compliance with the Model Code](index=39&type=section&id=Section%20V%20Other%20Important%20Matters-Compliance%20with%20the%20Model%20Code) The company adopted the Model Code for directors' and supervisors' securities transactions, with all confirming compliance during the reporting period - The company has adopted the Model Code as the code of conduct for directors and supervisors' securities transactions[119](index=119&type=chunk) - All directors and supervisors have confirmed that they have complied with the standards set out in the Model Code throughout the reporting period[119](index=119&type=chunk) [Directors' and Supervisors' Service Contracts](index=39&type=section&id=Section%20V%20Other%20Important%20Matters-Directors%27%20and%20Supervisors%27%20Service%20Contracts) No directors or supervisors have non-terminable service contracts within one year without compensation (excluding statutory compensation) with the company or its subsidiaries - No directors or supervisors have entered into service contracts with the Company or its subsidiaries that are not terminable within one year without compensation (other than statutory compensation)[120](index=120&type=chunk) [Rights of Directors and Supervisors to Acquire Shares or Debentures](index=39&type=section&id=Section%20V%20Other%20Important%20Matters-Rights%20of%20Directors%20and%20Supervisors%20to%20Acquire%20Shares%20or%20Debentures) No directors, supervisors, or their associates acquired rights to company shares or debentures, nor were any arrangements made by the company for such acquisitions - During the reporting period, no directors, supervisors, or their respective spouses or children under 18 years of age acquired rights to shares or debentures of the Company through purchase[121](index=121&type=chunk) - Nor were any arrangements made by the Company or any of its subsidiaries for the Company's directors, supervisors, or their respective spouses or children under 18 years of age to acquire such rights in any other body corporate[121](index=121&type=chunk) [Section VI Changes in Shares and Shareholder Information](index=40&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information) This section details major shareholders' and other persons' interests and short positions in company shares, and interests of directors, supervisors, and chief executives [Interests and Short Positions of Major Shareholders and Other Persons in the Company's Shares and Related Shares](index=40&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information-Interests%20and%20Short%20Positions%20of%20Major%20Shareholders%20and%20Other%20Persons%20in%20the%20Company%27s%20Shares%20and%20Related%20Shares) As of June 30, 2025, major shareholders, including Huarong, Financial Street entities, Xicheng District SASAC, Tianfeng Securities, Baotou Huazi, Huifa Technology, Hongzhi Huitong, and H-share holders, held long positions Major Shareholder Holdings (As of June 30, 2025) | 主要股東名稱 | 股份類別 | 權益性質 | 持有的股份數目（股） | 佔本公司已發行股份總數的概約百分比 (%) | 佔本公司已發行內資股╱H股的概約百分比 (%) | 好倉╱淡倉╱可供借出的股份 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huarong Comprehensive Investment | Domestic Shares | Beneficial Owner | 569,895,304 | 21.8806 | 26.4610 | Long Position | | Financial Street Investment | Domestic Shares | Controlled Corporation Interest | 781,367,619 | 29.9999 | 36.2799 | Long Position | | Xicheng District SASAC | Domestic Shares | Controlled Corporation Interest | 781,367,619 | 29.9999 | 36.2799 | Long Position | | Tianfeng Securities | Domestic Shares | Beneficial Owner | 440,618,114 | 16.9171 | 20.4585 | Long Position | | Baotou Huazi | Domestic Shares | Beneficial Owner | 308,000,000 | 11.8254 | 14.3008 | Long Position | | Huifa Technology | Domestic Shares | Beneficial Owner | 154,000,000 | 5.9127 | 7.1504 | Long Position | | Hongzhi Huitong | Domestic Shares | Beneficial Owner | 123,500,000 | 4.7417 | 5.7343 | Long Position | | Glowing Lane Limited | H Shares | Beneficial Owner | 124,724,000 | 4.7887 | 27.6644 | Long Position | | Ravi Global Limited | H Shares | Beneficial Owner | 123,206,000 | 4.7304 | 27.3277 | Long Position | - As of June 30, 2025, the Company had a total of **2,604,567,412 issued shares**, including **2,153,721,412 domestic shares** and **450,846,000 H shares**[124](index=124&type=chunk) [Interests and Short Positions of Directors, Supervisors and Chief Executive in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=42&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information-Interests%20and%20Short%20Positions%20of%20Directors%2C%20Supervisors%20and%20Chief%20Executive%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, no directors, supervisors, or chief executive held disclosable interests or short positions in the company's or its associated corporations' shares or debentures - As of June 30, 2025, no directors, supervisors, or chief executive of the Company held any interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations that are required to be disclosed under the Securities and Futures Ordinance or the Model Code[125](index=125&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=42&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information-Purchase%2C%20Redemption%20or%20Sale%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, redeemed, or sold any listed securities, and no treasury shares were held at period-end - During the reporting period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[126](index=126&type=chunk) - As of the end of the reporting period, the Company held no treasury shares[126](index=126&type=chunk) [Section VII Directors, Supervisors, Senior Management and Employees](index=43&type=section&id=Section%20VII%20Directors%2C%20Supervisors%2C%20Senior%20Management%20and%20Employees) This section details changes in directors, supervisors, and senior management, along with information on employees, remuneration policies, and training programs [Changes in Directors, Supervisors and Senior Management](index=43&type=section&id=Section%20VII%20Directors%2C%20Supervisors%2C%20Senior%20Management%20and%20Employees-Changes%20in%20Directors%2C%20Supervisors%20and%20Senior%20Management) Mr. Pang Jiemin was appointed non-executive director, Mr. Yu Lei resigned, and Mr. Yang Jinliang was appointed Vice President, with other changes in directors' and supervisors' positions - On January 10, 2025, Mr. Pang Jiemin was appointed as a non-executive director of the Fifth Board of Directors, and Mr. Yu Lei resigned[128](index=128&type=chunk) - During the reporting period, there were no changes in supervisors[129](index=129&type=chunk) - On March 29, 2025, Mr. Yang Jinliang was appointed as Vice President of the company[130](index=130&type=chunk) - Some directors and supervisors had other changes in their positions, for example, Mr. Zhu Yanhui no longer served as a director of Beijing Xicheng Charity Association, and Mr. Li Yanyong no longer served as the legal representative and chairman of Baotou Huazi Industrial Co., Ltd., but served as a senior advisor[131](index=131&type=chunk)[135](index=135&type=chunk) [Employees, Remuneration Policy and Training](index=44&type=section&id=Section%20VII%20Directors%2C%20Supervisors%2C%20Senior%20Management%20and%20Employees-Employees%2C%20Remuneration%20Policy%20and%20Training) The Group had **2,491 employees**; the company established a robust remuneration mechanism with diversified structure, deferred payment, and clawback provisions, providing extensive training with **100%** coverage - As of the end of the reporting period, the Group had a total of **2,491 employees**, including **2,075 employees** of the Company and **416 employees** of subsidiaries[133](index=133&type=chunk) - The company has established a diversified remuneration structure consisting of fixed remuneration, variable remuneration, and benefits, and has implemented a deferred payment mechanism for remuneration distribution and a clawback mechanism for salaries[133](index=133&type=chunk) - In 2025, the company launched and implemented an enterprise annuity plan, further enhancing employee welfare and security[133](index=133&type=chunk) - During the reporting period, the company organized and implemented **41 internal and external training sessions**, with a total of **7,849 participants**, achieving a training coverage rate of **100%**[134](index=134&type=chunk) - The company implemented layered and categorized training programs such as the "Kunpeng Plan" and "Hundred Talents Plan," focusing on the development of talent pipelines for key positions[134](index=134&type=chunk) [Independent Review Report](index=45&type=section&id=Independent%20Review%20Report) Grant Thornton (Hong Kong) Limited reviewed Hengtou Securities' interim financial information for H1 2025, concluding no non-compliance with IAS 34 based on HKSRS 2410 [Introduction and Conclusion](index=45&type=section&id=Independent%20Review%20Report-Introduction%20and%20Conclusion) Grant Thornton (Hong Kong) Limited reviewed Hengtou Securities' interim financial information for H1 2025, concluding no non-compliance with IAS 34 based on HKSRS 2410 - Grant Thornton (Hong Kong) Limited has reviewed the Company's interim financial information for the six months ended June 30, 2025[137](index=137&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants, and its scope is less than an audit, thus no audit opinion is expressed[138](index=138&type=chunk) - Based on the review, nothing has come to the auditor's attention that causes them to believe that the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting"[139](index=139&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=47&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2025, the Group's total operating revenue was **RMB 1,665,642 thousand**, up **42.45%**, with profit for the period significantly growing **1,003.21%** to **RMB 209,500 thousand** [Profit or Loss and Comprehensive Income](index=47&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income-Profit%20or%20Loss%20and%20Comprehensive%20Income) For H1 2025, the Group's total operating revenue was **RMB 1,665,642 thousand**, up **42.45%**, with profit for the period significantly growing **1,003.21%** to **RMB 209,500 thousand** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Fee and commission income | 838,699 | 572,872 | | Interest income | 353,446 | 353,347 | | Net investment income | 258,674 | 187,962 | | Other income and gains | 214,823 | 55,103 | | **Total Operating Revenue** | **1,665,642** | **1,169,284** | | Fee and commission expenses | (118,523) | (74,127) | | Interest expenses | (195,238) | (198,485) | | Staff costs | (604,588) | (362,163) | | Depreciation and amortization | (92,141) | (103,729) | | Taxes and surcharges | (8,662) | (6,694) | | Other operating expenses | (208,881) | (158,110) | | Asset impairment losses, net | (106,746) | (42,409) | | Unrealized fair value loss on financial assets measured at fair value through profit or loss | (16,504) | (148,469) | | **Total Operating Expenses** | **(1,351,283)** | **(1,094,186)** | | **Profit Before Tax** | **314,359** | **75,098** | | Income tax expense | (104,859) | (56,104) | | **Profit for the Period** | **209,500** | **18,994** | Profit for the Period and Comprehensive Income Attributable (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Profit for the period attributable to: | | | | Ordinary equity holders of the Company | 240,733 | 53,872 | | Non-controlling interests | (31,233) | (34,878) | | **Total Profit for the Period** | **209,500** | **18,994** | | Total comprehensive income for the period attributable to: | | | | Ordinary equity holders of the Company | 248,915 | 68,494 | | Non-controlling interests | (31,233) | (34,878) | | **Total Comprehensive Income for the Period** | **217,682** | **33,616** | | Earnings per share (basic and diluted) | RMB 0.0924 | RMB 0.0207 | [Condensed Consolidated Statement of Financial Position](index=49&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased **8.02%** to **RMB 43,186,520 thousand**, total liabilities increased **9.55%** to **RMB 34,261,815 thousand**, and total equity increased to **RMB 8,924,705 thousand** [Assets, Liabilities and Equity](index=49&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position-Assets%2C%20Liabilities%20and%20Equity) As of June 30, 2025, total assets increased **8.02%** to **RMB 43,186,520 thousand**, total liabilities increased **9.55%** to **RMB 34,261,815 thousand**, and total equity increased to **RMB 8,924,705 thousand** Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | 項目 | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | **Total Non-current Assets** | **2,817,668** | **2,411,328** | | Amounts due from financing clients | 5,445,620 | 5,840,304 | | Financial assets measured at fair value through other comprehensive income | 2,073,637 | 2,418,119 | | Financial assets measured at fair value through profit or loss | 9,983,470 | 9,645,475 | | Cash held on behalf of brokerage clients | 19,271,204 | 16,178,519 | | Cash and cash equivalents | 1,759,952 | 1,907,249 | | **Total Current Assets** | **40,368,852** | **37,569,753** | | **Total Assets** | **43,186,520** | **39,981,081** | | Debt instruments (current) | 3,067,462 | 2,420,000 | | Accounts payable to brokerage clients | 20,121,543 | 16,700,618 | | Financial assets sold under repurchase agreements | 3,776,815 | 4,099,600 | | **Total Current Liabilities** | **31,458,996** | **26,978,763** | | Debt instruments (non-current) | 1,923,894 | 3,394,895 | | **Total Non-current Liabilities** | **2,802,819** | **4,295,295** | | **Total Liabilities** | **34,261,815** | **31,274,058** | | **Total Equity** | **8,924,705** | **8,707,023** | | Equity attributable to ordinary equity holders of the Company | 8,544,448 | 8,295,533 | [Condensed Consolidated Statement of Changes in Equity](index=52&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For H1 2025, equity attributable to ordinary equity holders increased from **RMB 8,295,533 thousand** to **RMB 8,544,448 thousand**, primarily due to profit for the period and other comprehensive income [Changes in Equity](index=52&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity-Changes%20in%20Equity) For H1 2025, equity attributable to ordinary equity holders increased from **RMB 8,295,533 thousand** to **RMB 8,544,448 thousand**, primarily due to profit for the period and other comprehensive income Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025) | 項目 | Share Capital (RMB '000) | Share Premium (RMB '000) | Surplus Reserve (RMB '000) | General Risk Reserve (RMB '000) | Trading Risk Reserve (RMB '000) | Investment Revaluation Reserve (RMB '000) | Retained Earnings (RMB '000) | Subtotal Attributable to Ordinary Equity Holders of the Company (RMB '000) | Non-controlling Interests (RMB '000) | Total Equity (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 (audited) | 2,604,567 | 1,665,236 | 682,940 | 1,073,607 | 804,352 | (9,122) | 1,473,953 | 8,295,533 | 411,490 | 8,707,023 | | Profit for the period | – | – | – | – | – | – | 240,733 | 240,733 | (31,233) | 209,500 | | Other comprehensive income for the period | – | – | – | – | – | 8,182 | – | 8,182 | – | 8,182 | | Total comprehensive income for the period | – | – | – | – | – | 8,182 | 240,733 | 248,915 | (31,233) | 217,682 | | Transfer to general risk reserve | – | – | – | 6,458 | – | – | (6,458) | – | – | – | | As of June 30, 2025 (unaudited) | 2,604,567 | 1,665,236 | 682,940 | 1,080,065 | 804,352 | (940) | 1,708,228 | 8,544,448 | 380,257 | 8,924,705 | [Condensed Consolidated Statement of Cash Flows](index=53&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For H1 2025, net cash from operating activities was **RMB 389,736 thousand**, from investing activities **RMB 305,507 thousand**, and used in financing activities **RMB 850,352 thousand**, with period-end cash and cash equivalents of **RMB 2,086,770 thousand** [Cash Flows](index=53&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows-Cash%20Flows) For H1 2025, net cash from operating activities was **RMB 389,736 thousand**, from investing activities **RMB 305,507 thousand**, and used in financing activities **RMB 850,352 thousand**, with period-end cash and cash equivalents of **RMB 2,086,770 thousand** Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 389,736 | (129,342) | | Net cash generated from/(used in) investing activities | 305,507 | (409,316) | | Net cash (used in)/generated from financing activities | (850,352) | 613,992 | | Net (decrease)/increase in cash and cash equivalents | (155,109) | 75,334 | | Cash and cash equivalents at beginning of period | 2,242,066 | 2,034,205 | | Effect of foreign exchange rate changes | (187) | 138 | | Cash and cash equivalents at end of period | 2,086,770 | 2,109,677 | [Notes to the Condensed Consolidated Financial Statements](index=54&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering preparation basis, new IFRS adoption, and breakdowns of income, expense, asset, and liability items [Basis of Preparation](index=54&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Basis%20of%20Preparation) Interim financial information is prepared per IAS 34 and HKEX Listing Rules, to be read with 2024 annual statements, with data in **RMB thousand** unless specified - The interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the disclosure requirements of the Hong Kong Stock Exchange Listing Rules[151](index=151&type=chunk) - The interim financial data should be read in conjunction with the Group's financial statements for the year ended December 31, 2024[151](index=151&type=chunk) - Unless otherwise specified, the interim financial information is presented in **RMB thousand**[152](index=152&type=chunk) [Adoption of New and Revised International Financial Reporting Standards](index=54&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Adoption%20of%20New%20and%20Revised%20International%20Financial%20Reporting%20Standards) The Group adopted IAS 21 amendment "Lack of Exchangeability" effective January 1, 2025, with no significant impact, and lists other issued but not yet effective IFRS - The Group has adopted the amendment to International Accounting Standard 21 "Lack of Exchangeability" effective January 1, 2025[153](index=153&type=chunk) - The adoption of these revised International Financial Reporting Standards has no significant impact on the interim financial report[154](index=154&type=chunk) - Standards issued but not yet effective include amendments to IAS 18, IAS 19, IFRS 9 and IFRS 7, IFRS 10 and IAS 28, among others[156](index=156&type=chunk) [Fee and Commission Income](index=56&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Fee%20and%20Commission%20Income) For H1 2025, fee and commission income significantly increased to **RMB 838,699 thousand**, primarily driven by securities brokerage, with growth in asset management, underwriting, futures brokerage, and investment advisory Fee and Commission Income Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Securities brokerage business | 544,618 | 364,314 | | Asset management business | 95,994 | 93,099 | | Underwriting and sponsorship business | 66,631 | 35,861 | | Financial advisory business | 21,237 | 22,077 | | Futures brokerage business | 68,469 | 35,663 | | Investment advisory business | 37,051 | 14,317 | | Custody business | 4,699 | 7,541 | | **Total** | **838,699** | **572,872** | - Revenue recognized at a point in time was **RMB 679,718 thousand**, and revenue recognized over time was **RMB 158,981 thousand**[158](index=158&type=chunk) [Interest Income](index=57&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Interest%20Income) For H1 2025, total interest income was **RMB 353,446 thousand**, largely stable year-on-year, primarily from financing activities and deposits with financial institutions Interest Income Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Financing | 182,693 | 168,188 | | Deposits with financial institutions | 143,221 | 145,729 | | Financial assets purchased under resale agreements | 2,136 | 7,485 | | Financial assets measured at fair value through other comprehensive income | 25,396 | 31,204 | | Debt investments at amortized cost | – | 741 | | **Total** | **353,446** | **353,347** | [Net Investment Income](index=57&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Net%20Investment%20Income) For H1 2025, net investment income increased to **RMB 258,674 thousand**, primarily from dividends, interest income on financial assets, and realized gains from disposals Net Investment Income Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Dividend and interest income from financial assets measured at fair value through profit or loss and other comprehensive income | 110,132 | 116,625 | | Net realized gains from disposal of financial assets measured at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, debt investments at amortized cost, and derivative financial instruments | 148,542 | 71,337 | | **Total** | **258,674** | **187,962** | [Other Income and Gains](index=58&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Other%20Income%20and%20Gains) For H1 2025, other income and gains significantly increased to **RMB 214,823 thousand**, mainly due to substantial unrealized fair value gains on financial assets and derivative financial instruments Other Income and Gains Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Exchange losses/(gains), net | (186) | 138 | | Rental income | 2,342 | 2,219 | | Government grants | 2,803 | 2,305 | | Gains on disposal of property and equipment | 126 | 62 | | Unrealized fair value gains on financial assets measured at fair value through profit or loss and derivative financial instruments | 209,372 | 49,616 | | Others | 366 | 763 | | **Total** | **214,823** | **55,103** | [Fee and Commission Expenses](index=58&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Fee%20and%20Commission%20Expenses) For H1 2025, fee and commission expenses increased to **RMB 118,523 thousand**, primarily due to higher expenses in securities brokerage business Fee and Commission Expenses Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Securities brokerage business | 112,604 | 67,383 | | Underwriting and sponsorship business | 5,919 | 5,800 | | Financial advisory business | – | 944 | | **Total** | **118,523** | **74,127** | [Interest Expenses](index=59&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Interest%20Expenses) For H1 2025, interest expenses slightly decreased to **RMB 195,238 thousand**, with major expenditures on debt instruments, borrowings from financial institutions, and financial assets sold under repurchase agreements Interest Expenses Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Accounts payable to brokerage clients | 9,426 | 10,972 | | Borrowings from a financial institution | 31,375 | 27,293 | | Financial assets sold under repurchase agreements | 37,462 | 45,381 | | Finance costs on lease liabilities | 2,033 | 2,940 | | Debt instruments | 108,411 | 104,817 | | Short-term borrowings from direct holding company | 713 | – | | Amounts payable to related companies | 773 | – | | Other investors in consolidated asset management plans | (255) | 7,082 | | Compensation payable | 5,300 | – | | **Total** | **195,238** | **198,485** | [Staff Costs](index=59&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Staff%20Costs) For H1 2025, staff costs significantly increased to **RMB 604,588 thousand**, mainly due to higher short-term benefits and contributions to defined contribution plans Staff Costs Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Short-term benefits | 540,362 | 320,339 | | Termination benefits | 3,356 | 2,545 | | Defined contribution plans | 60,870 | 39,279 | | **Total** | **604,588** | **362,163** | - The Group is required to participate in pension schemes in Chinese jurisdictions and has established an annuity plan, making contributions at a certain percentage of employee salaries[165](index=165&type=chunk) [Depreciation and Amortization](index=60&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Depreciation%20and%20Amortization) For H1 2025, total depreciation and amortization decreased to **RMB 92,141 thousand**, including property and equipment, right-of-use assets, and intangible assets Depreciation and Amortization Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Depreciation: Property and equipment | 18,077 | 22,563 | | Depreciation: Investment properties | 1,088 | 1,076 | | Depreciation: Right-of-use assets | 35,588 | 41,840 | | Amortization: Intangible assets | 31,405 | 31,679 | | Amortization: Leasehold improvements, long-term prepaid expenses and other assets held for debt settlement | 5,983 | 6,571 | | **Total** | **92,141** | **103,729** | [Other Operating Expenses](index=60&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Other%20Operating%20Expenses) For H1 2025, other operating expenses increased to **RMB 208,881 thousand**, primarily due to higher electronic equipment operating costs, postage and communication, and other daily expenses Other Operating Expenses Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Business entertainment expenses | 6,457 | 6,854 | | Travel expenses | 6,256 | 6,371 | | Consulting fees | 11,951 | 9,960 | | Electronic equipment operating costs | 53,719 | 35,476 | | Office miscellaneous expenses | 531 | 802 | | Other commission expenses | 20,066 | 21,726 | | Labor service fees | 17,609 | 15,685 | | Postage and communication expenses | 10,652 | 5,415 | | Litigation compensation | 8,843 | 3,389 | | Short-term lease payments | 3,981 | 14,091 | | Securities investor protection fund | 8,214 | 4,854 | | Utilities and property management fees | 9,243 | 10,191 | | Others | 51,359 | 23,296 | | **Total** | **208,881** | **158,110** | [Asset Impairment Losses, Net](index=61&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Asset%20Impairment%20Losses%2C%20Net) For H1 2025, net asset impairment losses significantly increased to **RMB 106,746 thousand**, mainly due to substantial impairment losses on other current assets, with impairment reversals on financial instruments Asset Impairment Losses, Net Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Financing | 3,598 | 3,755 | | Financial assets purchased under resale agreements | – | 34,890 | | Financial instruments measured at fair value through other comprehensive income | (105,753) | (483) | | Debt investments at amortized cost | – | (674) | | Other current assets | 208,901 | 4,921 | | **Total** | **106,746** | **42,409** | [Income Tax Expense](index=61&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Income%20Tax%20Expense) For H1 2025, income tax expense increased to **RMB 104,859 thousand**, comprising current and deferred tax, with China's corporate income tax at **25%** Income Tax Expense Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Current tax | 70,786 | 1,564 | | Deferred tax | 34,073 | 54,540 | | **Total** | **104,859** | **56,104** | - Provision for China corporate income tax is calculated at the statutory rate of **25%**[170](index=170&type=chunk) [Earnings Per Share](index=62&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Earnings%20Per%20Share) For H1 2025, profit attributable to ordinary equity holders was **RMB 240,733 thousand**, with basic and diluted EPS significantly increasing to **RMB 0.0924**, and no potential dilutive ordinary shares Earnings Per Share Calculation (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Profit for the period attributable to ordinary equity holders of the Company | 240,733 | 53,872 | | Weighted average number of ordinary shares in issue for basic earnings per share calculation ('000 shares) | 2,604,567 | 2,604,567 | | **Basic and diluted earnings per share** | **RMB 0.0924** | **RMB 0.0207** | - For the six months ended June 30, 2025 and 2024, the Company had no potential dilutive ordinary shares, thus diluted earnings per share were the same as basic earnings per share[172](index=172&type=chunk) [Property and Equipment](index=62&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Property%20and%20Equipment) For H1 2025, the Group purchased **RMB 8,990 thousand** in property and equipment and disposed of **RMB 22 thousand** - During the six months ended June 30, 2025, the Group purchased property and equipment amounting to approximately **RMB 8,990 thousand**[173](index=173&type=chunk) - Disposals of property and equipment amounted to approximately **RMB 22 thousand**[173](index=173&type=chunk) [Right-of-Use Assets](index=62&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Right-of-Use%20Assets) For H1 2025, the Group signed **9 new property lease contracts** (2-5 year terms), resulting in new right-of-use assets of **RMB 8,697 thousand** - During the six months ended June 30, 2025, the Group entered into **9 new property lease contracts** with lease terms ranging from two to five years[174](index=174&type=chunk) - New right-of-use assets amounted to **RMB 8,697 thousand**[174](index=174&type=chunk) [Other Non-current Assets](index=63&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Other%20Non-current%20Assets) As of June 30, 2025, total other non-current assets were **RMB 75,277 thousand**, primarily comprising leasehold improvements, long-term prepaid expenses, other assets held for debt settlement, and prepayments Other Non-current Assets Details (As of June 30, 2025) | 項目 | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Leasehold improvements, long-term prepaid expenses and other assets held for debt settlement | 37,640 | 31,749 | |

Core Viewpoint - The 2025 "818 Wealth Management Festival" has commenced early, with multiple securities firms extending their activities and enhancing their service offerings, reflecting a transformation in the brokerage industry's service model from short-term marketing to long-term client engagement [1][5][10]. Group 1: Event Overview - The "818 Wealth Management Festival" has been held annually since 2017, and this year, several brokerage firms, including Heng Tai Securities and Changcheng Securities, have started their activities ahead of the official date [1][3]. - Heng Tai Securities launched its event from August 11 to 22, featuring trading activities and rewards such as cash red envelopes and advisory service coupons [3]. - Changcheng Securities extended its event duration to September 14, compared to the previous year, indicating a trend of longer promotional periods among firms [3][4]. Group 2: Service Model Transformation - The brokerage industry is undergoing a service model transformation, moving from single-point marketing to a strategy focused on continuous client engagement throughout the investment cycle [5]. - The "818 Wealth Management Festival" is evolving into a dual-driven system of "event ignition + long-term operation," aiming to convert short-term marketing activities into ongoing client support [5]. Group 3: Integration of AI Technology - AI has become a central theme in this year's festival, with firms like Guotai Haitong Securities offering immersive AI interactive experiences [6]. - National Gold Securities introduced an "AI Wealth Upgrade Plan" and an investment personality assessment tool to enhance decision-making for investors [6]. - The integration of AI is seen as a competitive advantage, allowing firms to better serve clients and meet personalized investment needs [7]. Group 4: Engagement with Younger Audiences - The festival features a variety of interactive and gamified activities aimed at attracting younger investors, such as competitions and quizzes [8]. - Firms are focusing on understanding real market demands through in-depth research, making the event more relatable and engaging for clients [8]. - Minsheng Securities is launching a game-based approach to enhance user engagement and provide personalized advisory services [8][9]. Group 5: Innovation in Service Offerings - National Gold Minsheng Securities is optimizing decision-making tools with a focus on low-cost and flexible payment models, responding to market demands for simplicity and effectiveness [9]. - Firms are building a comprehensive ecosystem that includes asset allocation, strategy tools, and educational content, moving beyond traditional product sales [9]. - Guangfa Securities is innovating by creating a "scene-based full-link companion ecosystem," integrating professional advisory services with social interaction [9].