N O T I F I C AT I O N L E T T E R 通 知 信 函 Dear Registered Shareholders, BOCOM International Holdings Company Limited (the "Company") – Publication of the 2025 Interim Report (the "Current Corporate Communications") The Current Corporate Communications of the Company have been published in English and Chinese languages and are available on the Company's website at www.bocomgroup.com and the HKEXnews's website at www.hkexnews.hk. For new registered shareholders (i.e. if you previously have not received the C ...

Financial Performance - For the first half of 2025, the company reported a loss attributable to shareholders of HKD 282.6 million, an improvement from a loss of HKD 355.3 million in the same period of 2024, representing a reduction of approximately 20.4%[13]. - The group reported a loss of approximately HKD 282.6 million for the six months ended June 30, 2025, compared to a loss of HKD 355.3 million in the same period of 2024[29]. - Operating loss improved to HKD 314,067,000 from HKD 391,227,000, reflecting a reduction of 19.7% year-over-year[69]. - The pre-tax loss for the six months ended June 30, 2025, was HKD 284,870,000, compared to a pre-tax loss of HKD 358,524,000 for the same period in 2024, showing an improvement of approximately 20.5%[91]. - Basic loss per share for the period was HKD 0.10, compared to HKD 0.13 for the previous year, indicating a reduction in loss per share[105]. Revenue and Income - The company's securities brokerage and margin financing business generated commission and fee income of HKD 71.3 million, an increase of HKD 29.0 million or 68.3% compared to HKD 42.3 million in the first half of 2024[14]. - Commission and fee income increased to HKD 104,118,000 from HKD 96,019,000, representing a growth of 8.9% year-over-year[69]. - Total revenue and other income decreased slightly to HKD 276,272,000 from HKD 285,148,000, a decrease of 3.0% year-over-year[69]. - The asset management and advisory segment generated revenue of HKD 28,969,000 for the six months ended June 30, 2025, compared to HKD 46,171,000 for the same period in 2024, a decline of approximately 37.3%[91]. - Interest income from loans and advances for the six months ended June 30, 2025, was HKD 129.8 million, an increase of approximately 0.7% from HKD 128.9 million in the same period of 2024[26]. Assets and Liabilities - As of June 30, 2025, total assets amounted to HKD 16,809 million, while total equity attributable to shareholders was HKD 883 million, resulting in a net asset value per share of HKD 0.32[4]. - The total amount raised from initial public offerings (IPOs) in the first half of 2025 was HKD 107.06 billion, an increase of 701.32% compared to the same period in 2024[19]. - Total assets under management reached approximately HKD 20,607.4 million as of June 30, 2025, representing a 13.5% increase from HKD 18,155.5 million as of December 31, 2024[22]. - The group's total borrowings amounted to HKD 13,465.8 million as of June 30, 2025, up from HKD 11,649.0 million on December 31, 2024[35]. - The group's net current assets decreased by HKD 4,274.0 million to a net current liability of HKD 579.6 million as of June 30, 2025, compared to net current assets of HKD 3,694.4 million on December 31, 2024[35]. Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2025, was HKD 768,384,000, compared to a net cash generated of HKD 645,479,000 in the same period of 2024, indicating a significant decline in cash flow[78]. - The company’s cash flow from financing activities for the six months ended June 30, 2025, was a net cash inflow of HKD 1,611,155,000, contrasting with a net cash outflow of HKD 1,212,576,000 in the same period of 2024[78]. - The company incurred financing costs of HKD 225,583,000 for the six months ended June 30, 2025, down from HKD 298,259,000 in the same period of 2024, representing a reduction of approximately 24.3%[77]. - The financing cost decreased by 24.4%, primarily due to a decline in average interest rates[31]. - The company paid interest expenses of HKD 197,199,000 for the six months ended June 30, 2025, compared to HKD 258,177,000 in the previous year, reflecting a decrease of approximately 23.6%[78]. Risk Management - The company has implemented a comprehensive risk management plan focusing on credit risk, market risk, and liquidity risk to mitigate potential adverse impacts on financial performance[141]. - The risk management department collaborates closely with operational units to identify and assess various risks, ensuring compliance with board-approved policies[142]. - The company conducted thorough due diligence on potential clients, including background checks and financial assessments, to manage credit risk effectively[143]. - The overall risk management strategy emphasizes the unpredictability of financial markets and aims to reduce potential negative impacts on the company's financial performance[141]. - The risk management department is responsible for reporting any significant risk events to senior management and the risk management committee for further action[145]. Shareholder Information - As of June 30, 2025, the major shareholder, Bank of Communications, holds 2,000,000,000 shares, representing 73.14% of the total issued shares[55]. - No dividends were declared or paid for the six months ending June 30, 2025, consistent with the previous year[63]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2025[57]. - The company has adopted the Corporate Governance Code as its governance framework and has complied with all relevant provisions during the reporting period[58]. - There were no agreements signed that would allow directors to acquire shares or debt securities of the company during the six months ending June 30, 2025[54]. Market Conditions - The Hong Kong capital market performed well, with the Hang Seng Index recording a 20% increase in the first half of 2025, positioning it among the top global markets[12]. - The company is navigating a complex global macroeconomic environment, with China's GDP growing by 5.3% year-on-year in the first half of 2025, showcasing resilience amid external challenges[12]. - The outlook for the second half of 2025 indicates potential marginal improvement in global economic growth, driven by trade negotiations and fiscal stimulus policies[51]. - The company aims to enhance its financial services capabilities by focusing on technology finance, green finance, inclusive finance, pension finance, and digital finance[51]. - The company aims to enhance its licensed business capabilities, focusing on providing comprehensive financial services to meet diverse client investment and financing needs[13].

Group 1 - The overall consumer market in mainland China is showing a mild recovery in the first half of 2025, with structural differentiation in various segments and three core trends observed: experience-driven consumption leading the way, globalization strategies contributing to revenue growth, and operational efficiency becoming a key factor in profit differentiation [1] Group 2 - Experience-driven consumption is experiencing strong growth, with new generation consumers reshaping consumption logic, leading to significant revenue increases for companies like Pop Mart and Top Toy, which saw year-on-year revenue growth of 204% and 73% respectively [2] - Companies are accelerating their globalization strategies, with overseas revenue contributions increasing significantly. For instance, Midea's overseas revenue grew by 18%, Haier's by 12%, Miniso's by 29%, Pop Mart's by 440%, and Anta's by over 150% [2] Group 3 - Despite a stabilization in revenue for most consumer companies, consumer sentiment remains cautious, leading to soft sales trends in July and August. Competitive pressures and heavy promotions have put pressure on profit margins, particularly in the sports goods sector, where major companies experienced a decline in gross margins [3] - Improving operational efficiency is crucial for enhancing profitability, with leading companies like Yili and China Resources Beer maintaining stable or slightly improved operating profit margins through cost reduction and efficiency enhancement [3]

Core Viewpoint - The report from CMB International raises the target price for SF Express (09699) to HKD 15.4, maintaining a "Buy" rating, indicating that the company is expected to benefit from a rationalization of delivery subsidies and has significant business growth potential in the future [1] Group 1: Financial Projections - CMB International has adjusted the revenue forecasts for SF Express for 2025-2027, projecting a growth of 14%/12%/12%, leading to revenues of RMB 22-30.4 billion, with annual increases of 40%/20%/15% [1] - Profit forecasts for 2025-2027 have been raised by 26%/23%/27%, resulting in projected profits of RMB 340-760 million, with Non-IFRS net profit margins of 1.5%/2%/2.6% [1] Group 2: Business Dynamics - The company is seen as a beneficiary of the ongoing delivery subsidy competition, with expectations that the rationalization of subsidies will enhance its business environment [1] - The collaboration with SF Express is expected to deepen, and the scaling of autonomous vehicle delivery is anticipated to continuously reduce costs [1] Group 3: Operational Efficiency - The company is experiencing a significant improvement in operational efficiency due to increased order density and effective management of quality riders, supported by AI technology [1]

Group 1 - The core viewpoint of the report is that the target price for SF Express (09699) has been raised to HKD 15.4, maintaining a "Buy" rating due to its position as a beneficiary in the delivery subsidy war [1] - The report highlights that as subsidies return to rationality, there remains significant business potential for SF Express, supported by deepening business synergies with SF Holdings and the ongoing cost reduction from the scaling of autonomous vehicle deliveries [1] - Based on a significantly better-than-expected revenue growth in the first half of the year, the demand for instant delivery services is expected to accelerate in the third quarter [1] Group 2 - Revenue forecasts for SF Express have been adjusted for 2025-2027, with expected growth rates of 14%/12%/12%, leading to revenues of RMB 22-30.4 billion, representing annual increases of 40%/20%/15% [1] - Profit forecasts for the same period have been raised by 26%/23%/27%, resulting in projected profits of RMB 340 million to 760 million, with Non-IFRS net profit margins of 1.5%/2%/2.6% [1] - The improvements in operational efficiency are attributed to increased order density, effective management of quality riders, and continuous optimization of operating costs aided by AI [1]

Group 1 - The core viewpoint is that multiple well-known brokerages have raised their target prices for Fourth Paradigm (06682), indicating strong confidence in the company's growth potential and unique value in the "AI+" era [1][4] - CMB International raised the target price from 64 HKD to 81 HKD, maintaining a "Buy" rating, with expectations of revenue growth of 7-22% from 2025 to 2027 and a forecast of turning profitable in 2025 and achieving slight profitability in 2026 [1] - Daiwa Securities also reiterated a "Buy" rating, increasing the target price from 58 HKD to 74 HKD, while Huatai Securities raised its target price to 77.89 HKD, highlighting the ongoing scale effects of AI [1] Group 2 - The recent upgrades in ratings for Fourth Paradigm stem from its solid performance and strong future growth expectations, with total revenue reaching 2.626 billion HKD in the first half of 2025, a year-on-year increase of 40.7% [2] - The adjusted net loss attributable to the parent company significantly narrowed by 71.2% year-on-year to 43.7 million HKD, indicating an improvement in profitability [2] - The core business, "Prophet AI Platform," showed particularly strong performance with a revenue increase of 71.9% year-on-year, reaching 2.149 billion HKD, accounting for 81.8% of total revenue [2] Group 3 - The favorable policy environment for AI development, as outlined in the State Council's document on August 26, is expected to benefit Fourth Paradigm's business expansion [3] - The company has positioned itself in AI+ energy storage and Phancy consumer electronics, demonstrating its ability to seize trends [3] - Fourth Paradigm has raised 2.7 billion HKD through placements in the past six months, providing ample funding for R&D and potential acquisitions, which will drive future growth [3]

Core Viewpoint - Multiple well-known brokerages have raised their target prices for Fourth Paradigm (06682), reflecting a consensus on the company's growth potential and unique value in the "AI+" era [1][4]. Group 1: Target Price Adjustments - CMB International raised Fourth Paradigm's target price from HKD 64 to HKD 81, maintaining a "Buy" rating, with expectations of revenue growth of 7-22% from 2025 to 2027 and a forecast of turning profitable in 2025 and achieving slight profitability in 2026 [1]. - Daiwa Securities reiterated a "Buy" rating, increasing its target price from HKD 58 to HKD 74 [1]. - Huatai Securities also joined the bullish sentiment, raising its target price to HKD 77.89, highlighting the ongoing scale effects of the company's AI solutions [1]. Group 2: Performance and Growth Expectations - Fourth Paradigm reported a strong performance in the first half of 2025, with total revenue reaching CNY 2.626 billion, a year-on-year increase of 40.7% [2]. - The adjusted net loss attributable to shareholders significantly narrowed by 71.2% year-on-year to CNY 43.7 million, indicating an improvement in profitability [2]. - The core business, "Prophet AI Platform," showed robust growth with a revenue increase of 71.9% year-on-year, reaching CNY 2.149 billion, accounting for 81.8% of total revenue [2]. Group 3: Policy Support and Financial Position - The recent policy document issued by the State Council on August 26, promoting the "AI+" initiative, creates a favorable environment for AI companies, including Fourth Paradigm [3]. - CMB International noted that this policy will benefit Fourth Paradigm's business expansion, as the company has already made strides in AI+ energy storage and Phancy consumer electronics [3]. - Fourth Paradigm raised HKD 2.7 billion through placements in the past six months, providing ample funding for R&D and potential acquisitions, which will drive future growth [3].

交银国际发表研究报告指，顺丰同城上半年收入增长速度显著胜于预期，加上第三季的实时配送业务需 求按季提速，多元布局下盈利持续释放。该行上调公司2025至27年的收入预测14%、12%及12%，至220 亿至304亿元，按年分别增长40%、20%及15%；受公司单量密度提升、优质的骑手管理能力及AI加持 下，营运费率持续改善，上调利润预测26%、23%和27%，至3.4亿至7.6亿元，Non-IFRS净利润率分别 为1.5%、2%及2.6%。 该行认为，顺丰同城仍然是外卖补贴战的受益方之一，在未来补贴回归理性，业务空间仍大，考虑到长 期其与顺丰的业务协同持续加深，无人车配送规模化落地持续降低成本，维持公司"买入"评级，又将估 值滚动至明年，对应0.5倍市销率，上调目标价至15.4港元。 ...

业绩亮点：1)同城业务：同城配送服务单量同比增50%+，商家/个人端收入分别增55%/13%。商家端大 幅加速增长得益于餐饮和即时零售市场快速增长下进一步深化KA客户合作，稳定承接快速增长的单 量，茶饮收入同比增105%，商超/医药/母婴等品类实现高双位数增长，拉动非餐场景收入同比增35%。 C端持续拓宽业务场景，新产品"独享专送"收入同比翻3倍，拉动个人端收入增速快于市场。2)最后一公 里配送：收入强劲增长得益于加深末端网络融通，对顺丰速运单量渗透率进一步提升。3)调整后净利润 1.6亿元，已超过去年全年利润，得益于规模效应、客户结构优化以及AI智能化提升运营效率。 交银国际发布研报称，顺丰同城(09699)仍是外卖补贴战的受益方之一，在未来补贴回归理性，业务空 间仍大，考虑到长期其与顺丰的业务协同持续加深，无人车配送规模化落地持续降低成本，该行维持公 司买入评级，该行将估值滚动至2026年，对应0.5倍市销率，上调目标价至15.4港元。 2025H1公司收入102亿元(人民币，下同)，同比增49%，高于该行预期16%，其中同城/最后一公里配送 业务分别增43%/57%，超预期得益于餐饮外卖和即时零售行业快 ...

智通财经APP获悉，交银国际发布研报称，顺丰同城(09699)仍是外卖补贴战的受益方之一，在未来补贴 回归理性，业务空间仍大，考虑到长期其与顺丰的业务协同持续加深，无人车配送规模化落地持续降低 成本，该行维持公司买入评级，该行将估值滚动至2026年，对应0.5倍市销率，上调目标价至15.4港元。 2025H1公司收入102亿元(人民币，下同)，同比增49%，高于该行预期16%，其中同城/最后一公里配送 业务分别增43%/57%，超预期得益于餐饮外卖和即时零售行业快速增长带来配送需求增加。毛利率 6.7%，同比基本保持平稳。调整后净利润同比增139%至1.6亿元，对应净利率1.6%，同比提升约0.6个百 分点。基于显著好于预期的上半年收入增速，以及3季度环比加速提升的即时配送业务需求，该行上调 顺丰同城2025-27年收入14%/12%/12%，至220亿-304亿元，同比增速40%/20%/15%，同时受到公司单量 密度提升、优质的骑手管理能力，以及AI加持下，运营费率的持续优化，该行上调2025-27年利润预测 26%/23%/27%，至3.4亿-7.6亿元，Non-IFRS净利润率分别1.5%/2%/2. ...