Group 1 - The company reported a revenue and other income of HKD 276 million for the six months ending June 30, 2025, with a loss of HKD 283 million, an improvement from a loss of HKD 355 million in the same period of 2024 [1] - Commission and fee income from securities brokerage increased by HKD 29 million or 68.3% to HKD 71.3 million compared to the same period in 2024 [1] - The company completed six IPO projects as overall coordinator and global coordinator/bookrunner during the reporting period [1] Group 2 - The company successfully assisted enterprises in raising a total of USD 11.4 billion through 30 bond issuance projects in the debt capital markets [1] - The total asset management scale reached approximately HKD 20,607.4 million as of June 30, 2025, a 13.5% increase from HKD 18,155.5 million on December 31, 2024 [1] - Asset management and advisory service fee income increased by HKD 1.9 million or 9.7% to HKD 21.9 million compared to the same period in 2024 [1] Group 3 - The company aims to leverage opportunities to strengthen Hong Kong's position as an international financial center, focusing on five key areas: technology finance, green finance, inclusive finance, pension finance, and digital finance [2] - The company emphasizes solidifying its foundation, seeking steady progress, improving quality and efficiency, and strictly controlling risks while enhancing its comprehensive financial service capabilities [2] - The company intends to create value for shareholders and investors by fully utilizing the financial service functions of bank-affiliated securities firms and the advantages of group synergy [2]

交银国际(03329)发布截至2025年6月30日止6个月中期业绩，收益及其他收入2.76亿港元，同比减少 3.11%;股东应占亏损2.83亿港元，同比收窄20.47%;每股亏损0.1港元。 ...

Group 1 - The company reported a revenue and other income of HKD 276 million for the six months ending June 30, 2025, representing a year-on-year decrease of 3.11% [1] - The loss attributable to shareholders was HKD 283 million, which narrowed by 20.47% year-on-year [1] - The loss per share was HKD 0.1 [1]

[Interim Financial Statements](index=1&type=section&id=Interim%20Financial%20Statements) This section presents the condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position, for the interim period [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Simplified%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group's loss for the six months ended June 30, 2025, significantly narrowed compared to the same period last year, primarily due to a substantial reduction in total expenses, despite a slight decrease in revenue and other income | Indicator | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Y-o-Y Change (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue and Other Income | 276,272 | 285,148 | (8,876) | (3.1%) | | Total Expenses | (590,339) | (676,375) | 86,036 | (12.7%) | | Operating Loss | (314,067) | (391,227) | 77,160 | (19.7%) | | Loss Before Tax | (284,870) | (358,524) | 73,654 | (20.5%) | | Loss for the Period Attributable to Equity Holders of the Company | (282,569) | (355,288) | 72,719 | (20.5%) | - The basic/diluted loss per share attributable to equity holders of the Company for the period improved to **HKD 0.10**, compared to **HKD 0.13** in the same period of 2024[5](index=5&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Simplified%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's total comprehensive income loss significantly narrowed, primarily driven by improved fair value changes of debt investments at fair value through other comprehensive income and exchange differences on translation of foreign operations | Indicator | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Y-o-Y Change (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss for the Period | (282,569) | (355,288) | 72,719 | (20.5%) | | Fair Value Changes of Debt Investments at Fair Value Through Other Comprehensive Income | 88,619 | 181,599 | (92,980) | (51.2%) | | Exchange Differences on Translation of Foreign Operations | 91,994 | (77,731) | 169,725 | (218.3%) | | Total Comprehensive Income Attributable to Equity Holders of the Company | (81,254) | (217,943) | 136,689 | (62.7%) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Simplified%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased, but total equity decreased, and net current assets turned into net current liabilities, reflecting changes in the asset and liability structure | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 16,808,855 | 14,515,167 | 2,293,688 | 15.8% | | Total Equity | 801,494 | 882,748 | (81,254) | (9.2%) | | Total Liabilities | 16,007,361 | 13,632,419 | 2,374,942 | 17.4% | | Net Current (Liabilities) / Assets | (579,631) | 3,694,419 | (4,274,050) | (115.7%) | - Total non-current assets increased by **2.6%** to **HKD 4,509,995 thousand**, and total current assets increased by **21.5%** to **HKD 12,298,860 thousand**[7](index=7&type=chunk) - Total non-current liabilities significantly decreased by **56.6%** to **HKD 3,128,870 thousand**, while total current liabilities substantially increased by **100.4%** to **HKD 12,878,491 thousand**[8](index=8&type=chunk) [Notes to the Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Simplified%20Consolidated%20Financial%20Information) This section provides detailed notes to the condensed consolidated financial information, covering general information, accounting policy changes, segment data, revenue, impairment, tax, dividends, loss per share, and specific asset and liability accounts [General Information](index=6&type=section&id=General%20Information) BOCOM International Holdings Company Limited is an investment holding company incorporated in Hong Kong, primarily engaged in securities brokerage, margin financing, corporate finance and underwriting, investment and lending, and asset management and advisory businesses, with Bank of Communications Co., Ltd. as its ultimate controlling company - The Company's principal business is investment holding, with the Group engaged in securities brokerage, margin financing, corporate finance and underwriting, investment and lending, and asset management and advisory businesses[9](index=9&type=chunk) - The parent company and ultimate controlling company is Bank of Communications Co., Ltd., incorporated in China and listed on the Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=Changes%20in%20Accounting%20Policies) The interim financial report follows the accounting policies adopted in the 2024 annual financial statements, with the application of HKAS 21 (Amendment) 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability' having no material impact on the Group - The interim financial report has been prepared in accordance with the same accounting policies adopted in the 2024 annual financial statements, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[11](index=11&type=chunk) - The Group has applied HKAS 21 (Amendment) issued by the Hong Kong Institute of Certified Public Accountants, which had no material impact on the Group[12](index=12&type=chunk)[13](index=13&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group's operations are managed across six segments: brokerage, corporate finance and underwriting, asset management and advisory, margin financing, investment and lending, and other, with varied performance in revenue and profit/loss before tax, where investment and lending contributed most to the total loss, while brokerage achieved profitability - The Group manages its business operations across six segments based on the nature of operations and services provided: brokerage, corporate finance and underwriting, asset management and advisory, margin financing, investment and lending, and other[15](index=15&type=chunk)[16](index=16&type=chunk) Segment Total Revenue and Profit / (Loss) Before Tax Overview (Six Months Ended June 30, 2025) | Segment | Total Revenue (thousand HKD) | Profit / (Loss) Before Tax (thousand HKD) | | :--- | :--- | :--- | | Brokerage | 78,463 | 574 | | Corporate Finance and Underwriting | 10,944 | (28,669) | | Asset Management and Advisory | 28,969 | (5,967) | | Margin Financing | 25,612 | 14,361 | | Investment and Lending | 184,458 | (264,895) | | Other | 48,720 | (274) | | **Total** | **276,272** | **(284,870)** | Segment Total Revenue and (Loss) / Profit Before Tax Overview (Six Months Ended June 30, 2024) | Segment | Total Revenue (thousand HKD) | (Loss) / Profit Before Tax (thousand HKD) | | :--- | :--- | :--- | | Brokerage | 47,797 | (29,653) | | Corporate Finance and Underwriting | 33,717 | (10,878) | | Asset Management and Advisory | 46,171 | (5,649) | | Margin Financing | 33,766 | (28,779) | | Investment and Lending | 55,495 | (337,975) | | Other | 101,972 | 54,410 | | **Total** | **285,148** | **(358,524)** | - Total external customer revenue from Hong Kong was **HKD 279,645 thousand** (2024: HKD 261,375 thousand), while from Mainland China it was **HKD (3,373) thousand** (2024: HKD 23,773 thousand)[18](index=18&type=chunk) [Revenue and Other Income](index=10&type=section&id=Revenue%20and%20Other%20Income) Total revenue and other income slightly decreased, with growth in commission and fee income, but declines in interest income, proprietary trading income (narrowed loss), and other income, particularly reduced exchange gains and computer software service income Revenue and Other Income Classification (Six Months Ended June 30, 2025) | Category | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Commission and Fee Income | 104,118 | 96,019 | 8,099 | 8.4% | | Interest Income | 155,449 | 162,669 | (7,220) | (4.4%) | | Proprietary Trading Income | (42,335) | (82,593) | 40,258 | (48.7%) | | **Total Revenue** | **217,232** | **176,095** | **41,137** | **23.4%** | | Other Income | 59,040 | 109,053 | (49,993) | (45.8%) | | **Total Revenue and Other Income** | **276,272** | **285,148** | **(8,876)** | **(3.1%)** | - Brokerage commission income increased by **68.3%** to **HKD 71,261 thousand**, while corporate finance and underwriting fees decreased by **67.5%** to **HKD 10,944 thousand**[19](index=19&type=chunk) - Exchange gains within other income decreased from **HKD 38,968 thousand** in the same period of 2024 to **zero** in 2025, with a significant reduction in computer software development and maintenance service income[20](index=20&type=chunk) - As of the end of the reporting period, the total revenue expected to be recognized in the future from customer contracts was **HKD 94,495 thousand**, primarily from corporate finance, asset management, and advisory services, expected to be recognized within one year[21](index=21&type=chunk) [Changes in Impairment Provisions](index=11&type=section&id=Changes%20in%20Impairment%20Provisions) The Group's total impairment provisions slightly increased, with a significant rise in provisions for loans and advances, while provisions for margin client loans and debt investments at fair value through other comprehensive income decreased Changes in Impairment Provisions (Six Months Ended June 30, 2025) | Category | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade Receivables | 350 | 3,729 | (3,379) | (90.6%) | | Margin Client Loans | (895) | 18,011 | (18,906) | (105.0%) | | Loans and Advances | 39,293 | 6,989 | 32,304 | 462.2% | | Debt Investments at Fair Value Through Other Comprehensive Income | 8,815 | 32,995 | (24,180) | (73.3%) | | Other Receivables | 12,446 | (1,924) | 14,370 | (746.9%) | | **Total Impairment Provisions** | **60,009** | **59,800** | **209** | **0.3%** | | Bad Debt Recoveries | (1,416) | (5,807) | 4,391 | (75.6%) | | **Net Changes in Impairment Provisions** | **58,593** | **53,993** | **4,600** | **8.5%** | [Items Deducted from Loss Before Tax](index=12&type=section&id=Loss%20Before%20Tax%20Deductions) The Group's finance costs and staff costs both significantly decreased, contributing to the narrowed loss before tax, while depreciation expenses remained relatively stable Items Deducted from Loss Before Tax (Six Months Ended June 30, 2025) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Finance Costs | 225,583 | 298,259 | (72,676) | (24.4%) | | Staff Costs | 141,123 | 173,673 | (32,550) | (18.7%) | | Depreciation | 57,351 | 61,631 | (4,280) | (6.9%) | | Operating Lease Expenses | 1,364 | 1,972 | (608) | (30.8%) | - The decrease in finance costs primarily resulted from reduced interest expenses on debts under repurchase agreements, bank loans from the ultimate controlling company, and bank loans and overdrafts from other financial institutions[23](index=23&type=chunk) [Income Tax](index=12&type=section&id=Income%20Tax) The Group recognized an income tax credit for the period, primarily due to the impact of deferred tax, with Hong Kong profits tax at 16.5% and China corporate income tax at 25% Income Tax (Six Months Ended June 30, 2025) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Current Tax | 2,045 | 2,320 | | Deferred Tax | (4,346) | (5,556) | | Income Tax Credit Recognized in Profit or Loss | (2,301) | (3,236) | - Hong Kong profits tax is provided at **16.5%**, and the corporate income tax rate for PRC entities is **25%**[24](index=24&type=chunk) [Dividends](index=13&type=section&id=Dividends) The Company neither paid nor declared any dividends for the six months ended June 30, 2025, consistent with the same period last year - The Company neither paid nor declared any dividends for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[26](index=26&type=chunk) [Loss Per Share](index=13&type=section&id=Loss%20Per%20Share) The Company's basic and diluted loss per share both improved, reflecting the narrowed loss for the period, with no potentially dilutive ordinary shares Loss Per Share (Six Months Ended June 30, 2025) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Loss Attributable to Equity Holders of the Company (thousand HKD) | (282,569) | (355,288) | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 2,734,392 | 2,734,392 | | Loss Per Share (HKD per share) | (0.10) | (0.13) | - There were no potentially dilutive ordinary shares, and thus diluted loss per share was the same as basic loss per share[28](index=28&type=chunk) [Loans and Advances](index=13&type=section&id=Loans%20and%20Advances) The Group's net loans and advances significantly decreased, primarily due to a substantial decline in the current portion, despite an increase in impairment provisions Loans and Advances (As of June 30, 2025) | Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Loans and Advances | 748,003 | 1,210,764 | (462,761) | (38.2%) | | Less: Impairment Provisions | (570,572) | (535,775) | (34,797) | 6.5% | | **Net Loans and Advances** | **177,431** | **674,989** | **(497,558)** | **(73.7%)** | | Non-current Portion | 27,588 | 11,568 | 16,020 | 138.5% | | Current Portion | 149,843 | 663,421 | (513,578) | (77.4%) | [Trade Receivables](index=14&type=section&id=Trade%20Receivables) The Group's trade receivables significantly increased, primarily from securities and futures trading business, with the vast majority being current (not overdue) amounts Trade Receivables (As of June 30, 2025) | Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate Finance and Underwriting Business | 16,600 | 2,627 | 13,973 | 532.0% | | Securities and Futures Trading Business | 1,664,293 | 910,073 | 754,220 | 82.9% | | Less: Impairment Provisions | (1,059) | (709) | (350) | 49.4% | | **Net Trade Receivables** | **1,679,834** | **911,991** | **767,843** | **84.2%** | - Of the trade receivables, **HKD 1,674,033 thousand** were current (not overdue), indicating a healthy aging structure[30](index=30&type=chunk) [Other Receivables and Prepayments](index=15&type=section&id=Other%20Receivables%20and%20Prepayments) The Group's other receivables and prepayments significantly increased, primarily due to a substantial rise in other receivables Other Receivables and Prepayments (As of June 30, 2025) | Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Other Receivables | 846,437 | 345,591 | 500,846 | 144.9% | | Less: Impairment Provisions | (64,886) | (63,723) | (1,163) | 1.8% | | **Net Other Receivables** | **781,551** | **281,868** | **499,683** | **177.3%** | | Prepayments | 74,077 | 20,829 | 53,248 | 255.6% | | **Total** | **855,628** | **302,697** | **552,931** | **182.7%** | [Margin Client Loans](index=15&type=section&id=Margin%20Client%20Loans) Net margin client loans decreased, primarily due to a reduction in gross margin loans, despite a significant decrease in impairment provisions Margin Client Loans (As of June 30, 2025) | Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Margin Client Loans | 660,282 | 995,220 | (334,938) | (33.7%) | | Less: Impairment Provisions | (15,629) | (161,978) | 146,349 | (90.4%) | | **Net Margin Client Loans** | **644,653** | **833,242** | **(188,589)** | **(22.6%)** | [Trade Payables](index=15&type=section&id=Trade%20Payables) The Group's trade payables significantly increased, primarily due to a substantial rise in amounts payable for client trade settlements Trade Payables (As of June 30, 2025) | Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Clients - Trade Settlements | 1,230,595 | 624,690 | 605,905 | 97.0% | | Clearing Houses | 120,043 | 3,181 | 116,862 | 3673.7% | | Brokers | 142,472 | 230,850 | (88,378) | (38.3%) | | **Total** | **1,493,110** | **858,721** | **634,389** | **73.9%** | - Settlement terms for client trade payables are typically two or three business days after the trade date or specific terms agreed with clients, brokers, or clearing houses[36](index=36&type=chunk) [Business Review](index=16&type=section&id=Business%20Review) This section provides a comprehensive review of the Group's business segments, including overall performance, securities brokerage, margin financing, corporate finance, asset management, investment and lending, and research activities [Overall Business Performance](index=16&type=section&id=Overall%20Business%20Performance) As a full-service securities company, the Group narrowed its loss in the first half of 2025 from **HKD 355.3 million** in the same period of 2024 to **HKD 282.6 million**, indicating an improvement in operating performance - The Group's loss for the first half of 2025 was **HKD 282.6 million**, a reduction from **HKD 355.3 million** in the same period of 2024[38](index=38&type=chunk) - One of the Group's core competitive advantages is providing comprehensive financial services and products to meet diverse client investment and financing needs[38](index=38&type=chunk) [Securities Brokerage and Margin Financing](index=16&type=section&id=Securities%20Brokerage%20and%20Margin%20Financing) Securities brokerage commission and fee income significantly increased, with a notable contribution from Hong Kong stocks; however, margin financing interest income decreased despite an increase in margin client accounts, due to a reduction in average monthly loan balances - Securities brokerage commission and fee income was **HKD 71.3 million** (H1 2025), an increase of **HKD 29.0 million** or **68.3%** compared to the same period in 2024[39](index=39&type=chunk) Securities Brokerage Commission Details by Product Type (Six Months Ended June 30) | Product Type | 2025 (million HKD) | 2025 (%) | 2024 (million HKD) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong Stocks | 58.1 | 81.5 | 25.5 | 60.3 | | Non-Hong Kong Stocks | 4.8 | 6.7 | 4.5 | 10.6 | | Bonds | 5.1 | 7.2 | 9.2 | 21.8 | | Other | 3.3 | 4.6 | 3.1 | 7.3 | | **Total** | **71.3** | **100.0** | **42.3** | **100.0** | - The number of margin client accounts increased to **9,761**, but margin loan interest income was **HKD 25.6 million**, a decrease of **HKD 8.2 million** or **24.1%** compared to the same period in 2024[41](index=41&type=chunk)[43](index=43&type=chunk) - Average monthly margin loan balance decreased from **HKD 1,067.4 million** as of December 31, 2024, to **HKD 983.3 million** as of June 30, 2025[43](index=43&type=chunk) [Corporate Finance and Underwriting](index=18&type=section&id=Corporate%20Finance%20and%20Underwriting) Despite a recovery in Hong Kong's IPO market with significant growth in new listings and total funds raised, the Group's corporate finance and underwriting service commission and fee income significantly decreased, completing six IPO main board listings and 30 bond issuance projects during the period - Corporate finance and underwriting service commission and fee income was **HKD 10.9 million** (H1 2025), a **67.5%** decrease from **HKD 33.7 million** in the same period of 2024[45](index=45&type=chunk) - In the first half of 2025, a total of **42** new shares were listed on the Stock Exchange, with total IPO funds raised amounting to **HKD 107.06 billion**, representing year-on-year increases of **40.00%** and **701.32%** respectively[45](index=45&type=chunk) - The Group completed **six** IPO main board listing projects as overall coordinator, global coordinator/bookrunner, and **30** bond issuance projects, assisting enterprises in raising a total of **USD 11.4 billion**[45](index=45&type=chunk) [Asset Management and Advisory](index=18&type=section&id=Asset%20Management%20and%20Advisory) The Group's Assets Under Management (AUM) increased, and it successfully launched its first public USD money market fund; asset management and advisory service fee income slightly rose, but proprietary trading income was zero - As of June 30, 2025, total Assets Under Management (AUM) was approximately **HKD 20,607.4 million**, an increase of **13.5%** compared to December 31, 2024[48](index=48&type=chunk) - Asset management and advisory service fee income was **HKD 21.9 million** (H1 2025), an increase of **9.7%** compared to the same period in 2024[48](index=48&type=chunk) - Successfully launched BOCOM International Money Market Fund (USD), the Group's first public USD money market fund approved by the Hong Kong SFC for sale in Hong Kong[47](index=47&type=chunk) - BOCOM Dragon Core Growth Fund achieved a return of **15.41%**, outperforming the Hang Seng Index by **5.17 percentage points** during the same period[47](index=47&type=chunk) [Investment and Lending](index=19&type=section&id=Investment%20and%20Lending) The Group's investment and lending business focuses on strategic emerging industries and short-to-medium duration bonds, with a slight increase in loan interest income and a significant narrowing of proprietary trading losses; the loan portfolio is concentrated in real estate, finance, and manufacturing, with high exposure to the top five clients - Interest income from loans and advances and financial assets at fair value through other comprehensive income was **HKD 129.8 million** (H1 2025), an increase of approximately **0.7%** compared to the same period in 2024[51](index=51&type=chunk) - Proprietary trading loss was **HKD 42.3 million** (H1 2025), a reduction of **HKD 50.3 million** compared to the same period in 2024[51](index=51&type=chunk) - Total loans granted by the Group to its top five clients amounted to **HKD 727 million**, representing **97.2%** of the Group's total loans granted during the reporting period, with **HKD 330 million** granted to the single largest client[50](index=50&type=chunk) Investment Balances by Asset Type for Equity and Fixed Income Investment Business (As of June 30, 2025) | Asset Type | June 30, 2025 (million HKD) | 2025 (%) | December 31, 2024 (million HKD) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Fixed Income Securities | 7,327.5 | 70.9 | 5,876.8 | 67.0 | | Equity Investments | 19.7 | 0.2 | 48.3 | 0.6 | | Funds | 2,986.6 | 28.9 | 2,838.1 | 32.4 | [Research](index=21&type=section&id=Research) The research team focuses on forward-looking and thematic research strategies, covering nine major industry sectors, aiming to uncover company value, strengthen group synergy, and enhance market competitiveness - The research team focuses on forward-looking and thematic research strategies, committed to full industry chain coverage of trending sectors, identifying sector and company value[55](index=55&type=chunk) - As of June 30, 2025, the research team covered **nine** major industry sectors and related listed company stocks[55](index=55&type=chunk) [Financial Performance Overview](index=22&type=section&id=Financial%20Performance%20Overview) This section provides a summary of the Group's financial performance, highlighting segment revenue contributions and overall loss reduction [Segment Revenue Summary](index=22&type=section&id=Segment%20Revenue%20Summary) The Group's total revenue and other income slightly decreased, but segment performance varied, with significant revenue growth in brokerage and investment and lending segments, while corporate finance and underwriting, asset management and advisory, margin financing, and other segments experienced revenue declines Total Revenue and Other Income Breakdown by Segment (Six Months Ended June 30) | Segment | 2025 (million HKD) | 2024 (million HKD) | Y-o-Y Change (million HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Brokerage | 78.5 | 47.7 | 30.8 | 64.6% | | Corporate Finance and Underwriting | 11.0 | 33.7 | (22.7) | (67.4%) | | Asset Management and Advisory | 21.9 | 29.9 | (8.0) | (26.8%) | | Margin Financing | 25.6 | 33.8 | (8.2) | (24.3%) | | Investment and Lending | 90.6 | 38.0 | 52.6 | 138.4% | | Other | 48.7 | 102.0 | (53.3) | (52.3%) | | **Total** | **276.3** | **285.1** | **(8.8)** | **(3.1%)** | - The Group's loss for the six months ended June 30, 2025, was approximately **HKD 282.6 million**, compared to a loss of **HKD 355.3 million** in the same period of 2024, representing a **20.5%** narrowing of the loss[56](index=56&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the Group's liquidity, financial resources, and capital structure, including cash balances, gearing ratio, and information on acquisitions, disposals, major investments, asset pledges, capital commitments, and contingent liabilities [Liquidity, Financial Resources and Gearing Ratio](index=22&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Gearing%20Ratio) The Group's cash and bank balances increased, but net current assets turned into net current liabilities, and the current ratio decreased; total borrowings increased, leading to a significant rise in the gearing ratio, yet the Board considers liquidity to be adequate - Cash and bank balances increased by **HKD 171.0 million** to **HKD 1,748.9 million** (December 31, 2024: HKD 1,577.9 million)[57](index=57&type=chunk) - Net current assets decreased by **HKD 4,274.0 million**, turning into net current liabilities of **HKD 579.6 million** (December 31, 2024: net current assets of HKD 3,694.4 million)[57](index=57&type=chunk) - The current ratio was approximately **1.0 times** (December 31, 2024: 1.6 times)[57](index=57&type=chunk) - Total borrowings amounted to **HKD 13,465.8 million** (December 31, 2024: HKD 11,649.0 million), and the gearing ratio (calculated as total borrowings divided by total equity) was **1,680.1%** (December 31, 2024: 1,319.6%)[57](index=57&type=chunk)[59](index=59&type=chunk) [Significant Acquisitions and Disposals](index=23&type=section&id=Significant%20Acquisitions%20and%20Disposals) During the reporting period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[60](index=60&type=chunk) [Major Investments Held](index=23&type=section&id=Major%20Investments%20Held) During the reporting period, the Group did not hold any major investments - During the reporting period, the Group held no major investments[61](index=61&type=chunk) [Pledge of Group Assets](index=23&type=section&id=Group%20Assets%20Pledged) As of June 30, 2025, the Group had no assets pledged - As of June 30, 2025, no Group assets were pledged[62](index=62&type=chunk) [Capital Commitments](index=23&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no significant capital commitments - As of June 30, 2025, the Group had no significant capital commitments[63](index=63&type=chunk) [Contingent Liabilities](index=23&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[64](index=64&type=chunk) [Outlook and Other Information](index=24&type=section&id=Outlook%20and%20Other%20Information) This section outlines the Group's future outlook amidst global economic challenges and opportunities, along with other relevant information including securities transactions, corporate governance, audit committee review, and key definitions [Outlook](index=24&type=section&id=Outlook) The Group anticipates global economic challenges in the second half of 2025, with potential for marginal improvement; China's economy will continue rebalancing domestic and external demand, while Hong Kong, as an international financial center, will play a crucial role, and the Company will seize opportunities to focus on 'Technology Finance, Green Finance, Inclusive Finance, Pension Finance, and Digital Finance' to enhance its comprehensive financial service capabilities - The global economic growth outlook for the second half of 2025 still faces multiple challenges but is expected to see marginal improvement[65](index=65&type=chunk) - China's economy will continue its rebalancing of domestic and external demand, with macroeconomic policies providing a confidence anchor and support for technological innovation, green transformation, and industrial upgrading[65](index=65&type=chunk) - Hong Kong will leverage its role as an international financial center bridge, with new vitality injected into emerging businesses such as RMB internationalization, green finance, and technology finance[65](index=65&type=chunk) - The Company will focus on the five key areas of 'Technology Finance, Green Finance, Inclusive Finance, Pension Finance, and Digital Finance,' concentrating on new quality productive forces to enhance its comprehensive financial service capabilities[65](index=65&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section covers the Company's non-purchase, sale, or redemption of listed securities during the reporting period, compliance with the Corporate Governance Code, the Audit Committee's review of interim financial information, and reiterates no interim dividend declaration - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[66](index=66&type=chunk) - The Company has complied with all code provisions set out in Part 2 of the Corporate Governance Code under the Listing Rules[67](index=67&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group with management and KPMG, and has reviewed the interim report[68](index=68&type=chunk) - The Company did not pay or declare any dividends for the six months ended June 30, 2025[69](index=69&type=chunk) [Definitions](index=25&type=section&id=Definitions) This section provides definitions for key terms used in the announcement to ensure a clear understanding of the report's content - This section provides definitions for **22** key terms, including 'Bank of Communications Group', 'Assets Under Management', 'Board', 'Bank of Communications', 'Company', 'Corporate Governance Code', 'Directors', and 'Group'[72](index=72&type=chunk)[73](index=73&type=chunk)[75](index=75&type=chunk)

Core Viewpoint - The report from CMB International raises the target price for Link REIT to HKD 49.8, indicating that the impact of interest rate cuts is expected to outweigh rental adjustments [1] Group 1: Financial Performance - In Q1 of FY2026, Link REIT's retail property portfolio sales decreased by 0.8% year-on-year, slightly underperforming compared to the overall market growth of 0.4% in Hong Kong, primarily due to the influence of e-commerce free services on non-essential goods transactions [1] - Despite the sales decline, Link REIT maintained high occupancy rates for both retail and office properties in Q1 of FY2026 [1] Group 2: Rental and Dividend Forecasts - The latest forecast for rental adjustments indicates a negative low single-digit percentage, which may lead to a slight decrease in revenue for FY2026 [1] - CMB International has slightly reduced the per unit dividend forecasts for FY2026 and FY2027 by approximately 1.5% and 2.9% respectively, while also introducing forecasts for FY2028 [1]

Core Viewpoint - The report from CMB International slightly raises the target price for Link REIT (00823) to HKD 49.8 while maintaining a "Buy" rating, citing potential interest rate cuts and inclusion in the Stock Connect as key catalysts in the next 12 months [1] Group 1: Target Price and Ratings - CMB International has adjusted the target price for Link REIT to HKD 49.8, reflecting a slight increase due to anticipated interest rate and discount rate reductions [1] - The firm maintains a "Buy" rating on Link REIT, indicating confidence in the stock's performance [1] Group 2: Financial Projections - The company has slightly lowered its per unit distribution forecasts for the fiscal years 2026 and 2027 by approximately 1.5% and 2.9% respectively, while introducing projections for fiscal year 2028 [1] - The latest operational data shows a year-on-year decline of 0.8% in sales for Hong Kong retail properties in Q1 of fiscal year 2026, which is slightly below the overall market growth of 0.4% [1] Group 3: Market Conditions and Performance - The decline in sales is attributed to the impact of e-commerce free shipping services on non-essential goods transactions [1] - Despite the sales decline, Link REIT maintains a high retail property occupancy rate of 97.6% and an office building occupancy rate of 99.2% [1] - The company anticipates a negative single-digit percentage for the renewal rent adjustment rate, which may lead to a slight decrease in revenue for fiscal year 2026 [1] Group 4: Financing Costs - The company expects recent declines in HIBOR/SORA/BBSY to help reduce financing costs [1]

Core Viewpoint - The report from CMB International slightly raises the target price for Link REIT (00823) to HKD 49.8, maintaining a "Buy" rating, citing potential interest rate cuts and inclusion in the Stock Connect as key catalysts in the next 12 months [1] Group 1: Target Price and Ratings - CMB International has adjusted the target price for Link REIT to HKD 49.8, reflecting a slight increase due to anticipated interest rate and discount rate reductions [1] - The firm maintains a "Buy" rating on Link REIT, indicating confidence in the stock's performance [1] Group 2: Financial Projections - The company has slightly reduced its per unit dividend forecasts for FY2026 and FY2027 by approximately 1.5% and 2.9% respectively, while introducing projections for FY2028 [1] - The anticipated decline in HIBOR/SORA/BBSY is expected to help lower financing costs for the company [1] Group 3: Operational Performance - Link REIT's latest operational data shows a 0.8% year-on-year decline in sales for its Hong Kong retail property portfolio in Q1 FY2026, which is slightly below the overall market growth of 0.4% [1] - The high occupancy rates remain strong, with retail properties at 97.6% and office buildings at 99.2% [1] - The company forecasts a negative single-digit adjustment rate for renewal rents, which may lead to a slight decline in revenue for FY2026 [1]

名创优品上调全年整体收入增长指引至超过25%，内地门店的同店销售全年有望实现同比正增长，并预 期全年经调整经营利润将达36.5亿至38.5亿元，对应同比增长7%至13%。考虑到上半年业绩和近期的销 售趋势，交银国际小幅上调2025年收入预测1%，但下调了2026至27年收入预测2%至4%，基于更加保守 的利润率假设，报告下调了2025至27年调整后净利润预测13%至14%，至28亿至40亿元。 交银国际发布研报称，名创优品(09896)上半年收入同比增长21.1%至93.9亿元人民币(下同)，其中次季 同比增长23.1%，超过此前指引，由海外市场和Top Toy推动。上半年经调整净利润同比微增3%至12.8亿 元，次季经调整净利润率按季改善至13.9%，但仍低于去年同期，受到海外直营店投入的影响。基于16 倍预测市盈率不变(滚动至2026年)，目标价由46.42港元升至48.7港元，维持"买入"评级。 ...

Group 1 - The core viewpoint of the report is that Tuhu-W (09690) is expected to achieve double-digit revenue growth and stable profit margins in the second half of the year, with a potential recovery in profit growth by 2026 [1] - The target price for Tuhu-W has been raised from HKD 21 to HKD 25, based on an 18 times price-to-earnings ratio for 2026, while maintaining a "Buy" rating [1] - In the first half of the year, Tuhu outperformed the industry through consumer insights and supply chain management technology, with revenue showing accelerated year-on-year growth [1] Group 2 - The company managed to improve gross profit margins on a quarter-on-quarter basis despite downward pressure on average transaction value by optimizing product category structure and supply chain management [1] - Operating expense ratios continued to show an optimizing trend, indicating effective cost management [1] - The performance and store opening progress in the first half of 2025 were generally in line with expectations [1]

Core Viewpoint - The report from CMB International indicates that Tuhu-W (09690) is expected to achieve double-digit revenue growth and stable profit margins in the second half of the year, with a potential recovery in profit trends by 2026, leading to an adjustment in valuation based on an 18x P/E ratio for 2026, raising the target price from HKD 21 to HKD 25 while maintaining a "Buy" rating [1] Group 1 - In the first half of the year, Tuhu outperformed the industry through insights from the consumer end and supply chain management technology [1] - The performance and store expansion in the first half of 2025 were generally in line with expectations, with revenue showing accelerated year-on-year growth [1] - Despite downward pressure on average transaction value, Tuhu improved its gross profit margin quarter-on-quarter by optimizing product category structure and supply chain management, while also continuing to optimize operating expense ratios [1]