NOTIFICATION LETTER 通知信函 Dear Non-Registered Holder(Note 1) , 22 August 2025 China Industrial Securities International Financial Group Limited (the "Company") – Notice of publication of 2025 Interim Report (the "Current Corporate Communications") on the Company's website . The English and Chinese versions of the Company's Current Corporate Communications are available on the Company's website at www.xyzq.com.hk and the website of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") at www.hkexnews ...

China Industrial Securities International Financial Group Limited 興證國際金融集團有限公司 If you for any reason have difficulty in receiving email notification or gaining access to the Website Version of the Corporate Communications and would like to receive the Current Corporate Communication and all future Corporate Communications in printed form, please complete, sign the enclosed Change Request Form and return it to the Company's branch share registrar in Hong Kong, Tricor Investor Services Limited ("Branch Share ...

Financial Performance - For the six months ended June 30, 2025, the total revenue was HKD 398,252,267, a decrease of 4.1% compared to HKD 418,874,972 for the same period in 2024[9] - Commission and fee income increased to HKD 160,282,624, up 13.5% from HKD 141,299,173 year-on-year[9] - Interest income rose significantly to HKD 117,922,649, representing a 61.9% increase from HKD 72,773,734 in the previous year[9] - Net trading and investment income decreased to HKD 120,046,994, down 41.3% from HKD 204,802,065 in the prior year[9] - The profit before tax for the period was HKD 123,250,609, an increase of 27.2% compared to HKD 96,802,222 in 2024[9] - The net profit for the period was HKD 102,931,754, up 16.0% from HKD 88,669,217 year-on-year[9] - Basic and diluted earnings per share decreased to HKD 0.0142 from HKD 0.0182 in the previous year[9] - The total comprehensive income for the period was HKD 174,106,819, an increase of 34.5% from HKD 129,333,500 in 2024[12] - The profit for the period was HKD 102,931,754, compared to HKD 88,669,217 in the previous period, reflecting a growth of approximately 16%[18][19] Assets and Liabilities - Non-current assets decreased from HKD 37,006,105 to HKD 26,837,593, a decline of approximately 27.5%[14] - Current assets increased significantly from HKD 14,768,665,732 to HKD 18,459,411,393, representing a growth of about 25.5%[14] - Total liabilities rose from HKD 10,316,187,272 to HKD 15,106,326,112, an increase of approximately 46.5%[14] - The company's net asset value increased slightly from HKD 4,236,078,453 to HKD 4,323,935,272, a growth of about 2.1%[16] - The total equity attributable to ordinary shareholders increased from HKD 3,236,078,453 to HKD 3,323,935,272, a growth of about 2.7%[16] Cash Flow - For the six months ended June 30, 2025, the net cash used in operating activities was HKD (225,780,701), compared to a net cash generated of HKD 201,072,605 in the same period of 2024[22] - The company incurred a net cash outflow from investing activities of HKD (1,804,430,772) for the six months ended June 30, 2025, compared to a net cash inflow of HKD 502,474,098 in the same period of 2024[22] - The company’s cash flow from financing activities showed a net inflow of HKD 2,225,112,457 for the six months ended June 30, 2025, compared to a net outflow of HKD (1,064,604,674) in the same period of 2024[22] Dividends - The company declared dividends amounting to HKD 40,000,000 during the period[18] - The final dividend for the year ending December 31, 2024, is HKD 0.01 per share, totaling HKD 40,000,000, approved for distribution for the six months ending June 30, 2025[47] - The company has no interim dividend declared for the six months ending June 30, 2025[48] Financial Instruments and Investments - The total financial assets measured at fair value through profit or loss as of June 30, 2025, is HKD 6,294,458,544, an increase of approximately 43.5% from HKD 4,384,118,101 as of December 31, 2024[51] - The total financial assets measured at fair value through other comprehensive income as of June 30, 2025, is HKD 5,466,977,543, up from HKD 4,941,786,306 as of December 31, 2024, indicating an increase of about 10.6%[54] - The total debt investments measured at amortized cost as of June 30, 2025, is HKD 2,296,756,482, significantly higher than HKD 775,157,315 as of December 31, 2024, marking an increase of approximately 195%[55] Risk Management - The group faces credit risk due to potential defaults by debtors or counterparties, with a risk management committee in place to monitor and update credit risk policies[132] - The group has established liquidity risk management procedures to ensure compliance with capital requirements and to manage potential liquidity risks effectively[133] - Market risk is managed through established policies and procedures, with regular reviews and adjustments to market strategies based on performance and market conditions[137] - The group has a comprehensive operational risk management framework to minimize the frequency and impact of operational risk events, supported by a structured management system[138] Shareholder Information - As of June 30, 2025, the major shareholder, 兴证（香港）金融控股有限公司, holds 2,365,291,644 shares, representing approximately 59.13% of the total shareholding[147] - 嘉实资本管理有限公司 and its controlled entities collectively hold 293,232,000 shares, accounting for 7.33% of the total shareholding[147] Corporate Governance - No directors or major shareholders have interests in any competing businesses as of June 30, 2025[153] - The company has no disclosures of interests or positions from any individuals other than directors and executives as of June 30, 2025[150] - There are no changes in the interests of directors or executives that require disclosure under the relevant regulations as of June 30, 2025[150]

Core Viewpoint - Despite global economic slowdown and rising geopolitical risks, Hong Kong's capital market shows remarkable vitality and resilience, with 兴证国际 (Xingzheng International) actively seizing opportunities for growth and strategic transformation [1] Group 1: Financial Performance - For the six months ending June 30, 2025, the company reported a revenue of HKD 398.25 million, a decrease of 4.92% year-on-year, while net profit after tax rose by 16.08% to HKD 102.93 million, indicating effective cost control and resource allocation [2] - The company's corporate financing service revenue surged by 84.89% to HKD 90.08 million, driven by a 120.37% increase in debt securities placement, underwriting, and syndication commissions, totaling HKD 85.24 million [2] - The company completed 105 bond underwriting projects with a total underwriting scale of USD 1.112 billion, a year-on-year increase of 13% [2][4] Group 2: Business Expansion and Strategy - The company has integrated its business expansion with the national "dual carbon" strategy, leading the industry in green finance practices by underwriting 34 green bonds with a financing scale exceeding HKD 60.7 billion [3] - In the wealth management sector, the company saw a significant increase in client activity, with trading volume in Hong Kong stocks rising by 71% year-on-year to approximately HKD 34.7 billion [5] - The company is focusing on enhancing its asset management capabilities, with its flagship product, "China Core Asset Fund," achieving a net value growth of 16.7% in the first half of the year [7] Group 3: Future Outlook - Looking ahead to the second half of 2025, the company aims to capitalize on structural opportunities in digital assets, cross-border finance, and green finance, which are expected to provide long-term stable returns for shareholders [8] - The company plans to leverage the evolving regulatory framework for digital assets to gain a competitive edge and extend its value chain [9] - Wealth management will enter a phase of refined operations and structural upgrades, focusing on institutional clients and enhancing cross-border advisory capabilities [10] - The company aims to strengthen its market position in green finance, driven by the "dual carbon" goals, and expand its market share through branding and awards recognition [11]

Core Viewpoint - The Hong Kong stock market has shown significant growth in 2023, with the Hang Seng Index and Hang Seng Tech Index both rising over 20%, leading to a surge in IPOs and post-listing financing, benefiting brokerage firms like Xingsheng International [1][2] Market Performance - In the first half of 2025, Hong Kong's capital market performed exceptionally well, with a total fundraising amount of HKD 107.1 billion in the new stock market, a sevenfold increase year-on-year, and the Hang Seng Index rising nearly 20% [2] - The average daily trading volume in the Hong Kong stock market reached HKD 240.2 billion, up 118% year-on-year [2] Company Performance - Xingsheng International reported a revenue of HKD 398 million for the first half of 2025, maintaining a steady upward trend, with a net profit of approximately HKD 103 million, a year-on-year increase of 16.08% [2] - The total asset size of the company reached HKD 20.901 billion, a significant increase of 32.85% compared to the end of 2024 [2] Business Segments - The company's main revenue sources include wealth management services, corporate financing services, asset management services, and financial products [2] - Corporate financing emerged as a core growth driver, with revenue increasing by 84.89% year-on-year to HKD 90.08 million [2][3] Bond Underwriting - Xingsheng International's bond underwriting business saw a remarkable performance, with revenue growth of 120.37% to HKD 85.24 million, completing 105 bond underwriting projects with a total scale of USD 1.112 billion, a 13% year-on-year increase [3] - The company ranked sixth in the Hong Kong market for Chinese bond underwriting, reflecting its strong market position [3] Wealth Management - In wealth management, Xingsheng International achieved revenue of approximately HKD 77.89 million, with brokerage commissions and fees contributing HKD 64.49 million and margin interest income of HKD 13.4 million [3] - The company launched promotional policies during the IPO boom, leading to a 71% year-on-year increase in client trading volume in Hong Kong stocks, reaching approximately HKD 34.7 billion [3] Cross-Border Financial Services - The cross-border wealth management business has diversified the company's revenue sources, achieving nearly HKD 900 million in product sales, an increase of about 11% year-on-year [4] - The company aims to enhance its cross-border business advantages and global service capabilities through a robust domestic and international service network [4] Investment Performance - The company's self-managed investment business maintained stability, with asset management revenue of approximately HKD 5.71 million and total managed assets of HKD 5.7 billion [4] - The annualized return rate for fixed income investments was 8.19%, while equity investments achieved an annualized return rate of 13.75% [5] Digital Asset Development - Hong Kong is focusing on the innovation and development of financial technology and digital assets, with regulatory frameworks being established to support virtual asset trading and custody services [6][7] - Xingsheng International is strategically positioning itself to capitalize on opportunities in the digital asset market, aiming to enhance its technological capabilities and business reserves [7][8] Future Outlook - The company plans to strengthen its cross-border financial services and integrate various business lines to enhance revenue growth and stability [8] - Xingsheng International is expected to continue optimizing its diversified business model, which will likely improve its profitability and attract long-term investor interest [8]

Core Insights - The Hong Kong stock market has shown significant growth in 2023, with the Hang Seng Index and Hang Seng Tech Index both rising over 20%, leading to record highs in IPO and post-listing financing [1][2] - The active capital market has positively impacted brokerage firms, enhancing their performance across multiple business lines, particularly benefiting companies like Xingsheng International [1][2] - Xingsheng International has experienced a substantial increase in stock price, nearly doubling since July, reflecting strong market recognition of its value [1] Financial Performance - In the first half of 2025, Xingsheng International reported a revenue of HKD 398 million, maintaining a steady growth trend, with a net profit of approximately HKD 103 million, up 16.08% year-on-year [2] - The company's total assets reached HKD 20.901 billion, a significant increase of 32.85% compared to the end of 2024, indicating robust market competitiveness [2] Business Segments - The corporate financing segment emerged as a key growth driver, with revenue soaring 84.89% to HKD 90.08 million [2] - The bond underwriting business saw remarkable performance, with revenue increasing 120.37% to HKD 85.24 million, completing 105 bond underwriting projects with a total scale of USD 1.112 billion [3] - Wealth management services generated approximately HKD 77.89 million, with a notable 71% increase in client trading volume in Hong Kong stocks [3][4] Strategic Initiatives - Xingsheng International is actively pursuing green finance initiatives, successfully underwriting 34 green bonds with a financing scale exceeding HKD 60.7 billion [3] - The company is expanding its cross-border wealth management services, achieving nearly HKD 900 million in product sales, up about 11% year-on-year [4] - The firm is also enhancing its self-managed investment business, with asset management revenue of approximately HKD 5.71 million and total managed assets of HKD 5.7 billion [4][5] Digital Asset Development - Hong Kong's government is advancing digital asset policies, positioning the region as a leading asset center, which presents new opportunities for brokerage firms [6][7] - Xingsheng International plans to leverage these developments by enhancing its digital asset services and integrating cross-border financial products to meet diverse client needs [7][8] Future Outlook - The company aims to strengthen its cross-border financial services, focusing on sustainable development and risk management to create long-term value for investors [8] - Xingsheng International is expected to optimize its diversified business model, enhancing revenue stability and improving profitability, which could positively influence market perceptions of its growth prospects [8]

Group 1 - The company's revenue for the first half of 2025 is HKD 398 million, with a net profit after tax of HKD 103 million, representing a year-on-year growth of 16.08% [2] - The corporate financing business revenue saw a significant year-on-year increase of 84.89%, reaching HKD 90.08 million [2] - Income from the placement, underwriting, and sub-underwriting of debt securities grew by 120.37%, amounting to HKD 85.24 million [2] Group 2 - The company plans to focus on strategic opportunities in the digital asset sector and expand its institutional client base and cross-border financial services [2] - There is an intention to accelerate product innovation in asset management and enhance competitiveness in equity financing by seizing opportunities in the Hong Kong stock market [2]

Core Viewpoint - The company reported a significant increase in revenue and profit for the six months ending June 30, 2025, driven by effective internal management and growth in its core enterprise financing business [1] Financial Performance - Total revenue reached HKD 398 million [1] - Shareholder profit amounted to HKD 103 million, representing a year-on-year increase of 16.09% [1] - Basic earnings per share were HKD 0.0142 [1] Business Segments - Revenue from the enterprise financing business was HKD 90.08 million, a substantial increase of 84.89% compared to HKD 48.72 million in 2024 [1]

Group 1 - The core viewpoint of the articles highlights the financial performance of the company, with a reported revenue of 398.25 million HKD and a net profit of 102.93 million HKD for the six months ending June 30, 2025, reflecting a year-on-year growth of 16.08% in profitability [1] - The significant growth in profit is attributed to the company's efficient internal management system, robust asset quality, and increased revenue from core corporate financing activities [1] - Corporate financing revenue reached 90.08 million HKD, marking an impressive year-on-year increase of 84.89%, with debt securities placement, underwriting, and syndication commissions contributing 85.24 million HKD, a 120.37% increase from the previous year [1] Group 2 - Looking ahead to the second half of 2025, the company plans to adhere to a principle of "steady operation and progress," seizing strategic opportunities in the rapidly evolving digital asset sector [2] - The company aims to develop a diverse and balanced wealth management product matrix, focusing on institutional clients and enhancing cross-border financial service capabilities [2] - The company will accelerate the innovation of asset management products to meet diverse client needs, leverage its brand and professional advantages in bond underwriting, and capitalize on the warming of the Hong Kong stock market to enhance business competitiveness [2] - A commitment to a "neutral and stable" low-volatility investment strategy will be maintained, with a focus on risk control and diversified investment types to capture market rotation opportunities [2] - The company emphasizes compliance and risk management, optimizing resource allocation, and building a professional, market-oriented, and international talent pool while adhering to green finance principles for sustainable development [2]

Core Insights - The company reported total revenue of HKD 398 million for the six months ending June 30, 2025, with a net profit attributable to shareholders of HKD 103 million, representing a year-on-year increase of 16.09% [1] - The growth in profit is attributed to the company's efficient internal management system, strong asset quality, and increased revenue from its core corporate financing business [1] - Corporate financing business revenue reached HKD 90.08 million, up 84.89% from HKD 48.72 million in 2024 [1]