香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部 份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 China Industrial Securities International Financial Group Limited 興證國際金融集團有限公司 （於開曼群島註冊成立之有限公司） 6058 （股份代號： ） 截至二零二三年六月三十日止六個月 中期業績公告 興證國際金融集團有限公司（「本公司」）董事會（「董事會」）宣佈本公司及其附屬公司 （統稱「本集團」）截至二零二三年六月三十日止六個月之未經審核簡明綜合業績， 連同比較數字如下： ...

Financial Performance - The company reported a total revenue of HKD 258.00 million for the year ended December 31, 2022, a decrease of 59.5% compared to HKD 636.37 million in 2021[21]. - The net loss for the year was HKD 297.40 million, a significant decline of 841.8% from a profit of HKD 40.09 million in the previous year[21]. - Brokerage commission and fee income fell by 25.1% to HKD 157.80 million, while corporate finance service income dropped by 44.7% to HKD 45.71 million[9]. - The group's operating revenue for the year ended December 31, 2022, was HKD 258.00 million, a decrease of 59.46% compared to HKD 636.37 million in 2021[30]. - The group reported a net loss after tax of HKD 297.40 million for the year ended December 31, 2022, compared to a net profit of HKD 40.09 million in 2021[30]. - Revenue from brokerage services decreased by 25.15%, corporate finance services by 44.67%, asset management services by 40.48%, margin financing services by 68.52%, and financial products and investment business by 97.81%[30]. Assets and Liabilities - Total assets decreased by 25.7% to HKD 12.47 billion from HKD 16.79 billion in 2021[14]. - The company's equity attributable to ordinary shareholders declined by 11.6% to HKD 2.99 billion[14]. - As of December 31, 2022, total assets decreased by 25.74% to HKD 12,472.18 million from HKD 16,794.80 million in 2021[42]. - The group's total liabilities decreased by 31.68% to HKD 8,477.30 million from HKD 12,407.61 million in the previous year[42]. Economic Impact - The Hong Kong economy contracted by 3.5% in 2022, impacting the capital markets significantly[21]. - The Hang Seng Index and the Hang Seng China Enterprises Index fell by 15.5% and 18.59% respectively during the year[21]. - Despite challenges, the mainland China's GDP grew by 3% in 2022, highlighting a stable economic performance compared to other major economies[21]. - The average daily trading volume of Hong Kong stocks decreased by 25.08% to HKD 124.9 billion in 2022[32]. Business Strategy and Goals - The group aims to enhance its international professional platform and strengthen its wealth management and institutional business pillars in 2023[26]. - The group plans to optimize its internal sales resources and upgrade its institutional business development model in 2023[26]. - The group will continue to focus on compliance and strict risk control while enhancing revenue and profit structure in 2023[26]. Awards and Recognition - The group has received multiple awards, including the Bloomberg Businessweek 2022 Wealth Management "Outstanding Award" and the "Best Wealth Management Award" from Zhitong Finance[35]. Risk Management - The group has established a comprehensive risk management framework involving the board of directors, management, risk management committee, and various departments to ensure effective risk control[52]. - The group has implemented a three-line defense risk management structure to enhance the efficiency and effectiveness of risk management operations[53]. - The group closely monitors credit risk exposure and conducts regular stress tests to mitigate potential losses from credit defaults[55]. - The liquidity risk management system is in place to ensure sufficient funds are available to meet obligations and operational needs[56]. - The group has set market risk limits and regularly reviews market strategies to adapt to changes in performance and market conditions[59]. - The operational risk management framework aims to reduce the frequency and impact of operational risk events through robust internal controls and procedures[60]. - Business continuity management mechanisms are established to ensure stable operations during unexpected events[61]. - The group has established a robust compliance and legal risk management framework, continuously monitoring and optimizing policies to align with changing regulations[63]. Corporate Governance - The company emphasizes high standards of business ethics and corporate governance in all its operations[152]. - The board consists of seven members, with three being female, reflecting a gender diversity policy[164]. - The company has adopted a board diversity policy to enhance effectiveness, considering factors such as gender, age, and professional experience[164]. - The company has adhered to the corporate governance code throughout the year[151]. - The board is responsible for overseeing the effectiveness of the group's risk management and internal control systems[191]. Shareholder Communication - The company emphasizes effective communication with shareholders through annual and special general meetings, providing a platform for dialogue with the board[196]. - The company maintains a commitment to transparency, ensuring shareholders have access to accurate and comprehensive information[194]. - Shareholder communication policies are designed to facilitate active engagement and informed decision-making by shareholders[194]. Dividends and Remuneration - The company did not declare any dividends for the year, maintaining a basic loss per share of HKD 0.0744[9]. - The board did not recommend any final dividend for the year ended December 31, 2022, consistent with the previous year[90]. - The company has adopted a dividend policy ensuring that the total annual dividend will not be less than 40% of the net profit attributable to the owners for that year[197]. - The remuneration policy for directors includes salary, pension contributions, and other benefits, reviewed regularly based on market levels and company performance[112]. Financing Agreements - The company has established multiple financing agreements over the years, indicating a reliance on external financing to support operations and growth[115][116][117][120]. - The company is actively managing its financing structure to ensure compliance with ownership requirements to avoid defaults[119][120].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部 分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 China Industrial Securities International Financial Group Limited 興證國際金融集團有限公司 （於開曼群島註冊成立之有限公司） 6058 （股份代號： ） 截至二零二二年十二月三十一日止年度的 全年業績公告 業績 興證國際金融集團有限公司（「本公司」）董事（「董事」）會（「董事會」）宣佈本公司及其 附屬公司（統稱為「本集團」）於截至二零二二年十二月三十一日止年度之綜合業績， 連同截至二零二一年十二月三十一日止年度之比較數字如下： ...

Financial Performance - Total revenue for the six months ended June 30, 2022, was HKD 93,195,343, a decrease from HKD 425,750,172 in the same period of 2021[15] - The company reported a loss of HKD 198,345,423 for the six months ended June 30, 2022, compared to a profit of HKD 53,831,260 in the same period of 2021[15] - Commission and fee income decreased to HKD 100,560,756 from HKD 151,048,768 year-on-year, representing a decline of approximately 33.4%[15] - Interest income for the period was HKD 18,595,371, down from HKD 73,719,676 in the previous year, indicating a decrease of about 74.8%[15] - The company incurred total operating expenses of HKD 80,873,385, compared to HKD 92,955,332 in the prior year, reflecting a reduction of approximately 13%[15] - The basic loss per share for the period was HKD (0.0496), compared to earnings per share of HKD 0.0135 in the same period last year[15] - The company’s total comprehensive loss for the period amounted to HKD 206,170,874, contrasting with a total comprehensive income of HKD 53,831,260 in the prior year[15] - Total revenue and other income for the six months ended June 30, 2022, was HKD 100,560,756, a decrease of 33.5% from HKD 151,048,768 in the same period of 2021[46] - The company reported a pre-tax loss of HKD 198,903,690 for the six months ended June 30, 2022, compared to a pre-tax profit of HKD 62,405,692 in the previous year[62] - The company reported a loss attributable to ordinary shareholders of HKD (198,345,423) for the six months ended June 30, 2022, compared to a profit of HKD 53,831,260 for the same period in 2021[69] Assets and Liabilities - Non-current assets decreased from HKD 76,002,382 to HKD 55,135,437, a decline of approximately 27.4%[19] - Accounts receivable increased significantly from HKD 1,518,484,994 to HKD 2,051,743,599, representing a growth of about 35%[19] - Current liabilities decreased from HKD 10,039,601,724 to HKD 10,514,235,059, an increase of approximately 4.7%[19] - Total equity decreased from HKD 4,387,197,972 to HKD 4,181,027,098, a decline of around 4.7%[22] - Cash and cash equivalents decreased from HKD 5,458,957,080 to HKD 4,479,497,967, a reduction of approximately 17.9%[19] - The company's net asset value decreased from HKD 6,393,158,345 to HKD 6,207,344,193, a decline of about 2.9%[19] - The company’s total liabilities increased from HKD 10,039,601,724 to HKD 10,514,235,059, an increase of about 4.7%[19] - The company’s deferred tax assets increased from HKD 121,593,827 to HKD 126,135,961, an increase of approximately 3.5%[19] - Total assets increased by 1.62% to HKD 17,066.22 million, while total liabilities rose by 3.85% to HKD 12,885.19 million as of June 30, 2022[162] Cash Flow and Financing - For the six months ended June 30, 2022, the net cash used in operating activities was HKD (862,795,844), compared to HKD (692,946,987) for the same period in 2021, representing an increase of approximately 24.5%[32] - The net cash used in financing activities was HKD (112,141,494), a significant decrease from HKD 2,562,504,287 in the same period of 2021[32] - The company raised bank loans amounting to HKD 750,000,000 during the period, compared to HKD 44,694,144,990 in the previous year[32] - The company reported a decrease in interest paid, which was HKD (55,092,067) compared to HKD (116,402,907) in the previous year, indicating a reduction of approximately 52.7%[32] - The company’s cash flow from operating activities included interest received of HKD 112,368,113, down from HKD 181,735,906 in the previous year, a decrease of approximately 38.2%[32] Revenue Breakdown - Brokerage service revenue decreased by 43.63% to HKD 68.43 million, primarily due to low investor trading activity amid market volatility[152] - Corporate finance revenue increased by 27.13% to HKD 20.43 million, driven by a 68.76% rise in debt securities placement and underwriting commissions[156] - Asset management revenue fell by 13.77% to HKD 11.71 million, with total assets under management at HKD 7,295 million as of June 30, 2022[157] - Loan and financing revenue dropped by 76.12% to HKD 15.62 million, reflecting a strategic reduction in low-quality margin financing[158] - Financial products and investment recorded a loss of HKD 22.99 million, a decline of 110.99% from a profit of HKD 209.28 million in 2021[159] Risk Management and Compliance - The group maintains a neutral and prudent risk appetite, focusing on sustainable development and compliance with risk control standards[175] - The group emphasizes the importance of a comprehensive risk management framework, which includes a three-line defense model to ensure effective risk management execution[177] - The group has established liquidity risk management policies to identify, monitor, and mitigate potential liquidity risks, ensuring compliance with applicable legal requirements[179] - The group faces market risks related to adverse changes in exchange rates, interest rates, and financial asset prices, with established policies to monitor and control these risks[184] - The group has implemented an operational risk management framework to reduce the frequency and impact of operational risk events, covering all departments and personnel[185] - The compliance management framework includes three lines of defense to ensure adherence to legal regulations and to provide compliance advice for various business plans[189] Shareholder Information - As of June 30, 2022, the largest shareholder, 兴证（香港）金融控股有限公司, holds 2,077,337,644 shares, representing 51.93% of the total shares[198] - 嘉实资本管理有限公司 and its affiliates collectively hold 293,232,000 shares, accounting for 7.33% of the total shares[198] - China Credit Trust Co., Ltd holds 40% of the total issued share capital of Jiashi Fund Management Co., Ltd[199] - Jiashi Fund Management Co., Ltd holds 75% of the total issued share capital of Jiashi Capital Management Co., Ltd[199] - Chen Jiaquan owns 70% of the total issued share capital of Chongye Holdings Limited[199] - Chen Jiaquan is the sole director of Haokang Financial Holdings Group Limited[199] - Yang Zhiying is considered to have an interest in all shares owned by Chen Jiaquan according to the Securities and Futures Ordinance[200]

Financial Performance - The company achieved a total revenue of HKD 636.37 million for the year ended December 31, 2021, representing a 10.3% increase from HKD 576.70 million in 2020[25]. - The net profit for the year was HKD 40.09 million, a significant turnaround from a net loss of HKD 492.54 million in 2020, marking an increase of 108.1%[25]. - Commission and fee income from brokerage services rose to HKD 210.82 million, up 14.0% from HKD 184.97 million in the previous year[9]. - Income from corporate finance services decreased by 36.1% to HKD 82.62 million, down from HKD 129.28 million in 2020[9]. - Interest income from loans and financing services fell by 36.6% to HKD 95.61 million, compared to HKD 150.83 million in 2020[9]. - The net profit margin improved to 6.3% from a negative 85.4% in the previous year, reflecting a 91.7% change[18]. - The return on equity (ROE) for the year was 1.2%, a significant recovery from a negative 13.6% in 2020[18]. - The group achieved a revenue of HKD 636.37 million for the year ended December 31, 2021, representing a year-on-year increase of 10.3% from HKD 576.70 million in 2020[35]. - The net profit after tax for the group was HKD 40.09 million, a significant recovery from a net loss of HKD 492.54 million in 2020[35]. - Brokerage service revenue increased by 14.0% to HKD 210.82 million, up from HKD 184.97 million in the previous year[40]. - The group's asset management business saw a 12.5% increase in revenue, while corporate financing services revenue decreased by 36.1%[35]. - The group's financial products and investment income surged by 160.6% to HKD 214.22 million, compared to HKD 82.20 million in 2020[46]. Asset and Liability Management - The company's total assets decreased by 8.0% to HKD 16.79 billion from HKD 18.26 billion in the previous year[18]. - The total underwriting amount for USD bonds was USD 1,363 million, with a market share of 0.66%, representing a growth of 19.38% year-on-year, ranking 7th among Chinese brokers[41]. - Total assets decreased by 8.0% to HKD 16,794.80 million, while total liabilities decreased by 16.8% to HKD 12,407.61 million as of December 31, 2021[47]. - The capital-to-equity ratio decreased by approximately 43.1% to 1.181, down from 2.076 in the previous year[50]. - The group's net cash inflow was HKD 3,172.73 million, a significant improvement from a cash outflow of HKD 3,073.73 million in 2020[48]. Business Strategy and Development - The group plans to optimize its business structure and aims for sustainable growth in revenue and profit, aligning with the national "14th Five-Year Plan"[30]. - The group plans to enhance its business development, focusing on wealth management and institutional business, while exploring alternative investment opportunities[51]. - The group has established a neutral and moderately conservative internal control management culture, enhancing its operational service capabilities through financial technology[27]. Risk Management - The group has established a comprehensive risk management framework involving the board of directors, management, risk management committee, and various departments to ensure effective risk control[60]. - The group implements a risk appetite and limit management system, maintaining a neutral to conservative risk preference to identify and assess potential risks related to credit, liquidity, market, and operations[60]. - The group closely monitors credit risk exposure and conducts regular stress tests to mitigate potential losses from clients failing to meet obligations[61]. - The liquidity risk management system is designed to identify, monitor, and mitigate potential liquidity risks, ensuring compliance with applicable legal requirements[64]. - The group actively manages market risk by setting limits and regularly reviewing market strategies to adapt to changes in performance and market conditions[65]. - The group has implemented an operational risk management framework that covers all departments and activities, ensuring that operational risks are monitored and controlled[67]. Corporate Governance - The board of directors consists of seven members, including one non-executive director, three executive directors, and three independent non-executive directors[157]. - The company has complied with the corporate governance code, with the exception of a few deviations noted during the year[153]. - The audit committee has reviewed the audited consolidated financial statements for the year ended December 31, 2021[149]. - The company has established a code of conduct for directors' securities trading, confirming compliance with the standard code[173]. - The chairman and CEO roles are clearly separated, with distinct responsibilities outlined in writing[167]. - The company has adopted a board diversity policy considering factors such as gender, age, cultural background, and professional experience[164]. - The audit committee includes one non-executive director and two independent non-executive directors, ensuring compliance with corporate governance standards[176]. Human Resources - The total number of full-time employees increased to 210, with total compensation amounting to HKD 159.93 million, down from HKD 169.96 million in 2020[55]. - The company provides necessary training for newly appointed directors to ensure understanding of operations and responsibilities[168]. - The remuneration committee reviewed the compensation of directors and made recommendations regarding service contracts for two executive directors[181]. Related Party Transactions - The company has ongoing related party transactions with 兴证（深圳） and has adhered to pricing policies as per the relevant guidelines[134]. - The company has extended the service agreement with 兴证（深圳） for an additional three years, with proposed annual caps of HKD 59 million, HKD 94 million, and HKD 145 million for the years ending December 31, 2022, 2023, and 2024 respectively[129]. - The company has confirmed compliance with the non-competition agreement established with its controlling shareholders[138]. Leadership and Management - Mr. Huang, appointed as a non-executive director, has over 21 years of experience in the financial services industry[75]. - Mr. Li, the CEO, has over 18 years of experience in the financial services sector and has held multiple key positions in various subsidiaries[77]. - Ms. Zeng, with over 15 years of experience in financial services, previously served as the Chief Financial Officer of the company[81]. - Ms. Zhang, appointed as the Chief Financial Officer, has over 13 years of experience in the financial services industry[82]. - Ms. Hong, an independent non-executive director, has over 43 years of experience in the accounting industry[86]. - Mr. Tian, an independent non-executive director, has over 21 years of experience in the financial services sector[87].

Financial Performance - Total revenue for the six months ended June 30, 2021, was HKD 425,750,172, an increase of 4.5% compared to HKD 405,921,643 for the same period in 2020[11]. - Customer commission and fee income decreased to HKD 151,048,768, down 15.2% from HKD 177,879,148 in the previous year[11]. - Interest income fell to HKD 73,719,676, a decrease of 25.5% compared to HKD 99,064,775 in 2020[11]. - Investment income and net gains amounted to HKD 200,981,728, an increase of 55.8% from HKD 128,977,720 in the prior year[11]. - The group reported a profit before tax of HKD 62,405,692, compared to a loss of HKD 324,501,345 in the same period last year[11]. - The net profit for the period was HKD 53,831,260, a significant recovery from a loss of HKD 285,841,245 in 2020[11]. - Basic earnings per share for the period was HKD 0.0135, compared to a loss per share of HKD 0.0715 in the previous year[11]. - The pre-tax profit for the period was HKD 62,405,692, a significant recovery from a pre-tax loss of HKD 324,501,345 in the previous year[57]. - Net profit turned positive at HKD 53.83 million, a significant increase of HKD 339.67 million year-on-year[161]. Assets and Liabilities - Non-current assets decreased to HKD 363,884,298 from HKD 455,303,277 as of December 31, 2020[15]. - Current assets increased significantly, with accounts receivable rising to HKD 6,347,443,645 from HKD 3,481,413,395[15]. - Total liabilities increased to HKD 13,933,099,679 from HKD 12,576,672,689 as of December 31, 2020[15]. - As of June 30, 2021, the company's net asset value increased to HKD 4,400,935,593 from HKD 3,347,104,333 as of December 31, 2020, representing a growth of approximately 31.4%[18]. - The total equity attributable to the owners of the company improved to HKD 4,400,935,593, compared to HKD 3,347,104,333 in the previous year, indicating a significant recovery in financial health[23]. - The total liabilities as of June 30, 2021, included bonds of HKD 2,341,150,134, which were not present in the previous year's report, indicating new debt issuance[18]. - The cumulative losses decreased to HKD (832,979,496) from HKD (886,810,756) year-over-year, showing a reduction in accumulated losses[23]. - The company’s total reserves amounted to HKD 3,400,935,593 as of June 30, 2021, compared to HKD 3,347,104,333 at the beginning of the year, reflecting a slight increase in overall reserves[23]. - Total assets increased by 25.93% to HKD 22,999.41 million as of June 30, 2021[172]. - Total liabilities rose by 24.68% to HKD 18,598.47 million as of June 30, 2021[172]. Cash Flow and Financing - The company reported a net cash outflow from operating activities of HKD (692,946,987) for the six months ended June 30, 2021, compared to HKD (104,129,975) in the same period of 2020, reflecting a deterioration in cash flow management[28]. - Financing activities generated a net cash inflow of HKD 2,562,504,287, a substantial increase compared to a net cash outflow of HKD (375,595,286) in the previous year, indicating improved financing conditions[28]. - The company issued perpetual securities amounting to HKD 1,000,000,000 during the reporting period, enhancing its capital structure[28]. - The company’s cash and cash equivalents at the end of the reporting period stood at HKD 4,154,195,135, down from HKD 4,841,244,697 a year earlier, indicating a decline in liquidity[28]. - The group reported accounts payable to the immediate holding company of HKD 2,290,734,000 as of June 30, 2021, slightly up from HKD 2,286,899,000 as of December 31, 2020[107]. - The group issued a three-year secured bond of $300 million in February 2021, with net proceeds used to repay short-term bank loans[174]. Revenue Segments - The brokerage segment continues to be a key revenue driver, with significant contributions from securities and futures brokerage commissions[54]. - The brokerage segment generated revenue of HKD 121,543,353, while the asset management segment contributed HKD 23,873,717, indicating strong performance across divisions[55]. - User data showed a notable increase in client activity, with brokerage revenue rising from HKD 83,964,664 in the first half of 2020 to HKD 121,403,047 in the first half of 2021, marking a growth of approximately 44.4%[59]. - Corporate finance revenue decreased by 80.85% to HKD 16.07 million, primarily due to intensified industry competition and a strategic shift to improve project quality[165]. - Asset management revenue grew by 35.82% to HKD 13.58 million, with total assets under management increasing by 27.73% to HKD 9,334 million[167]. - Financial products and investment revenue rose by 40.32% to HKD 209.28 million, attributed to a conservative investment strategy amid market uncertainties[169]. Risk Management - The group maintains a neutral to conservative risk appetite and emphasizes strict internal control management to support business development amid economic uncertainties[175]. - The group has established a comprehensive risk management framework, including a three-line defense model to ensure effective risk management execution[183]. - The group actively monitors credit risk and has implemented a tiered authorization mechanism for credit approvals to mitigate potential losses[187]. - The group has developed liquidity risk management policies to ensure sufficient funding for obligations and business operations, utilizing various financing channels[188]. - The group has established policies and procedures to monitor and control market risks, including interest rates, exchange rates, stock prices, and commodity prices[190]. Management and Governance - The remuneration and short-term benefits for key management personnel increased from HKD 14,173,461 to HKD 24,142,616, representing a growth of approximately 70%[150]. - The group has established a reputation risk management mechanism to identify, assess, and mitigate potential reputation risks, ensuring no major reputation risk events occurred during the reporting period[196]. - As of June 30, 2021, the group’s directors and senior management held shares in the company, with Huang Yilin owning approximately 0.06% (2,264,384 shares) and Wang Xiang owning approximately 0.20% (8,131,197 shares)[199].

Financial Performance - Brokerage commission and fee income for 2020 was HKD 184,969,148, an increase of 10.2% from HKD 167,797,427 in 2019[8] - Corporate finance service income decreased by 16.5% to HKD 129,278,835 from HKD 154,775,270 in 2019[8] - Total revenue for 2020 was HKD 576,700,171, down 54.3% from HKD 1,261,563,267 in 2019[8] - The company reported a net loss of HKD (492,537,583) for 2020, compared to a loss of HKD (461,859,447) in 2019, reflecting a decrease of 6.6%[8] - The group's operating revenue for the year ended December 31, 2020, was HKD 576.70 million, a decrease of 54.3% compared to HKD 1,261.56 million in 2019[32] - The net loss after tax for the year was HKD 492.54 million, compared to a net loss of HKD 461.86 million in 2019[32] Assets and Liabilities - Total assets as of December 31, 2020, were HKD 18,263,690,895, a decrease of 24.9% from HKD 24,304,672,709 in 2019[16] - Total liabilities decreased by 27.1% to HKD 14,916.59 million as of December 31, 2020, compared to HKD 20,465.03 million in 2019[43] - The company's distributable reserves as of December 31, 2020, amounted to approximately HKD 2,885,778,165[93] Equity and Shareholder Information - Equity attributable to owners of the company was HKD 3,347,104,333, down 12.8% from HKD 3,839,641,916 in 2019[16] - The company’s net asset value per share decreased by 12.5% to HKD 0.84 from HKD 0.96 in 2019[8] - Major shareholder, 兴证（香港）金融控股有限公司, holds 51.93% of the total issued shares, totaling 2,077,337,644 shares[105] - 嘉实资本管理有限公司 and its related entities collectively hold 7.33% of the shares, amounting to 293,232,000 shares[105] Business Segments and Operations - The number of clients in the brokerage segment grew by 24% to 36,301, with total securities trading volume increasing by 25% to HKD 174,479 million[36] - The proportion of fee-based business revenue rose to 60%, an increase of 32 percentage points[23] - The investment banking business saw a 20% growth in bond underwriting, with non-real estate client growth at 9%[23] - The average daily margin financing scale decreased by 46.2% compared to 2019, leading to a 68.4% drop in margin financing interest income[32] - The asset management business achieved significant growth, with the first public fund's scale increasing nearly fivefold, meeting mutual recognition standards[23] Risk Management and Compliance - The group plans to enhance risk management frameworks and invest in information technology to improve real-time risk control[25] - The group closely monitors the margin ratios and loan-to-collateral valuation ratios of its loan and financing clients, taking appropriate measures to mitigate potential losses[57] - The group has established a multi-tiered authorization mechanism and internal policies for managing and approving the use and allocation of capital, setting authorization limits for any commitments or outflows[58] - The group has implemented a robust compliance and legal risk management framework, continuously assessing the severity and causes of identified legal and compliance risks[59] - The group has developed policies and procedures to monitor and control price risks arising from daily business operations, regularly reviewing market risk limits across various business lines[61] Corporate Governance - The management team includes experienced professionals with over 12 years in the financial services industry[76] - The company has appointed independent non-executive directors with extensive backgrounds in accounting and finance, enhancing governance[80] - The company emphasizes the importance of financial management and analysis in its operations, with dedicated teams for these functions[77] - The company is committed to maintaining high standards of corporate governance through its independent board members[80] - The board of directors consists of eight members, including one non-executive director, four executive directors, and three independent non-executive directors[152] Committees and Board Activities - The Audit Committee consists of one non-executive director and two independent non-executive directors, with a meeting attendance rate of 100% for all members[176] - The Remuneration Committee reviewed the remuneration of directors and made recommendations for new executive directors' service contracts, achieving a 100% attendance rate for all members[181] - The Nomination Committee evaluated the structure and composition of the board, ensuring compliance with governance codes, with a 100% attendance rate for all members[186] - The Audit Committee's main responsibilities include reviewing financial reporting procedures and overseeing risk management and internal control systems[175] Miscellaneous - The company has not disclosed any significant suppliers due to the nature of its business activities[95] - The company has not made any charitable donations during the year[133] - The company has established a non-competition agreement with its controlling shareholders to prevent competition in Hong Kong and other regions[130][131] - The company has confirmed compliance with applicable laws and regulations without any significant violations during the year[138] - The financial statements for the year have been audited by KPMG, which was appointed as the auditor after Deloitte's resignation[144][145]

Financial Performance - Total revenue for the six months ended June 30, 2020, was HKD 405,921,643, a decrease of 37.8% compared to HKD 651,905,536 in the same period of 2019[9] - Customer commission and fee income was HKD 177,879,148, down 3.2% from HKD 183,357,227 year-on-year[9] - Interest income decreased by 30.7% to HKD 99,064,775 from HKD 143,013,021 in the previous year[9] - Investment income and net gains or losses were HKD 128,977,720, a significant drop of 60.4% compared to HKD 325,535,288 in 2019[9] - The company reported a loss before tax of HKD 324,501,345, compared to a profit of HKD 148,556,105 in the same period last year[9] - Net loss for the period was HKD 285,841,245, compared to a profit of HKD 131,482,312 in 2019[9] - Basic loss per share was HKD (0.0715), compared to earnings of HKD 0.0329 per share in the previous year[9] - The company reported a net loss of HKD 285,841,245 for the six months ended June 30, 2020, compared to a profit of HKD 131,482,312 for the same period in 2019[19] - The net profit before tax for the six months ended June 30, 2020, was a loss of HKD 285,841,245, compared to a profit of HKD 131,482,312 in the same period in 2019[56] - The group reported a net loss of HKD 285.84 million for the six months ended June 30, 2020, compared to a profit of HKD 131.48 million in 2019[144] Assets and Liabilities - Non-current assets totaled HKD 492,827,888 as of June 30, 2020, an increase from HKD 430,494,046 at the end of 2019[12] - Current liabilities increased to HKD 17,890,437,074 from HKD 16,136,267,645 at the end of 2019[12] - The net asset value of current assets was HKD 6,855,836,568, down from HKD 7,737,911,018 in the previous year[12] - As of June 30, 2020, the company's total non-current liabilities amounted to HKD 3,794,863,785, a decrease of 12.3% from HKD 4,328,763,148 as of December 31, 2019[14] - The company's net asset value decreased to HKD 3,553,800,671 as of June 30, 2020, down 7.4% from HKD 3,839,641,916 at the end of 2019[14] - Total assets increased by 3.84% to HKD 25,239.10 million, while total liabilities rose by 5.96% to HKD 21,685.30 million[153] Cash Flow - Cash and cash equivalents decreased by HKD 518,705,636 to HKD 4,841,244,697 as of June 30, 2020, compared to HKD 7,683,583,033 at the end of June 2019[25] - The company incurred a net cash outflow from operating activities of HKD 104,129,975 for the six months ended June 30, 2020, compared to a net cash inflow of HKD 2,558,524,131 for the same period in 2019[25] - The group's cash outflow for the six months was HKD 518.71 million, with a bank balance of HKD 4,841.24 million as of June 30, 2020[154] Revenue Breakdown - Commission and fee income from brokerage services totaled HKD 83,964,664, down from HKD 90,825,946 in 2019, reflecting a decrease of about 7.5%[36] - Interest income from loans and financing was HKD 78,896,657, compared to HKD 142,760,378 in the previous year, indicating a decline of approximately 44.8%[36] - The asset management segment generated revenue of HKD 20,035,334, down from HKD 9,995,539 in the previous year, indicating a decrease of approximately 50%[44] - The company’s total client commission and fee income from insurance brokerage was HKD 1,014,503, down from HKD 3,199,466 in 2019, a decrease of about 68.3%[36] - Brokerage service revenue decreased by 7.55% to HKD 83.96 million, while corporate finance revenue increased by 0.49% to HKD 83.92 million[146][149] - Asset management revenue grew by 10.78% to HKD 10.00 million, while loan and financing revenue fell by 44.73% to HKD 78.90 million[150][151] - Financial products and investment revenue decreased by 54.22% to HKD 149.15 million due to market volatility[152] Employee and Management Costs - Employee costs for the six months ended June 30, 2020, amounted to HKD 79,198,981, compared to HKD 90,336,866 in the same period in 2019, indicating a reduction in employee expenses[49] - The total remuneration for key management personnel for the six months ended June 30, 2020, was HKD 14,173,461, an increase from HKD 13,295,952 in the same period of 2019[132] Corporate Governance and Compliance - The company did not declare an interim dividend for the six months ended June 30, 2020, following a total dividend of HKD 92,000,000 declared for the previous year[54] - The company has complied with the corporate governance code as per the listing rules for the six months ending June 30, 2020[194] - An audit committee has been established, consisting of one non-executive director and two independent non-executive directors, with the chair being an independent director[195] - The audit committee reviewed the unaudited consolidated results for the six months ending June 30, 2020, and confirmed compliance with applicable accounting standards and legal requirements[195] Risk Management - The group has established a risk management framework to control credit, liquidity, market, and operational risks[167] - The group has implemented a liquidity risk management process to identify and control potential liquidity risks, maintaining compliance with capital requirements[171] - The group closely monitors the margin ratios and loan-to-value ratios of its loan and financing clients to mitigate risks[168] - The group actively assesses foreign exchange risks, particularly from transactions denominated in currencies other than HKD[176] - The group has adopted measures to hedge interest rate risks associated with fixed-rate loans and debt securities[177] Future Outlook - The investment environment for the second half of 2020 is expected to remain challenging, with slow economic recovery anticipated in Hong Kong[158] - The group plans to accelerate business transformation and optimize its business structure, focusing on wealth management and institutional business[158]

Financial Performance - The company reported a total revenue of HKD 1,261.56 million for the year ended December 31, 2019, representing a 24.8% increase from HKD 1,011.05 million in 2018[21]. - The net loss after tax for the year was HKD 461.86 million, compared to a profit of HKD 143.80 million in 2018, indicating a significant decline[21]. - Commission and fee income from brokerage services decreased by 21.0% to HKD 167.80 million, while corporate finance service income fell by 26.8% to HKD 154.78 million[7]. - Asset management service income surged by 87.6% to HKD 36.08 million, reflecting growth in this segment[7]. - Interest income from loans and financing services increased by 11.9% to HKD 479.20 million, indicating a positive trend in lending activities[7]. - Financial products and investment income saw a remarkable increase of 203.0%, reaching HKD 423.72 million[7]. - The company's net profit margin was reported at -36.6%, a drastic change from a positive margin of 14.2% in 2018[15]. - The group achieved a revenue of HKD 1,261.56 million for the year ended December 31, 2019, representing a 24.8% increase from HKD 1,011.05 million in 2018[31]. - The group reported a net loss of HKD 461.86 million for the year ended December 31, 2019, compared to a profit of HKD 143.80 million in 2018[31]. Asset and Liability Management - Total assets as of December 31, 2019, were HKD 24,304.67 million, a 4.1% increase from HKD 23,343.84 million in 2018[15]. - The equity attributable to the company's owners decreased by 12.6% to HKD 3,839.64 million from HKD 4,391.07 million in 2018[15]. - Total liabilities increased by 8.0% to HKD 20,465.03 million as of December 31, 2019, compared to HKD 18,952.77 million in 2018[46]. - Net cash inflow for the year was HKD 3,842.72 million, a substantial increase from HKD 335.86 million in 2018[47]. - The bank balance as of December 31, 2019, was HKD 5,359.95 million, up from HKD 1,517.23 million in 2018[47]. - The capital debt ratio increased by approximately 32.5% to 3.157 as of December 31, 2019, compared to 2.382 in 2018[50]. Business Strategy and Future Plans - The group plans to focus on corporate financing, bond underwriting, institutional sales, wealth management, asset management, and overseas research to achieve organic growth and high-quality development in the coming year[26]. - The group aims to adopt a cautious investment strategy while actively capturing market arbitrage opportunities and quality asset allocation[26]. - The company plans to enhance its wealth management services and optimize online business operations in the future[37]. - The company aims to expand its brand recognition and seek opportunities in new economy sectors and biotechnology for equity financing[41]. - The company plans to enhance the revenue share of fee-based businesses while cautiously developing capital-intensive operations for sustainable growth[52]. Risk Management - The group will continue to optimize its risk management framework and enhance its information technology investments for better real-time risk control[26]. - The compliance department closely monitors the group's licensed business operations to ensure adherence to regulatory requirements and arranges for license renewals before expiration[63]. - The group has established policies and procedures to monitor and control market risks arising from daily business processes, with regular reviews and adjustments to market strategies based on performance and market conditions[64]. - The group primarily faces foreign exchange risk from transactions denominated in currencies other than HKD, with a focus on USD-denominated bond investments and other fixed-income products[65]. - Interest rate risk mainly arises from fixed-rate loans and debt securities, with the group employing tools like U.S. Treasury futures to hedge against this risk[67]. - The group has implemented operational risk management measures, including the establishment of oversight personnel and real-time monitoring systems for trading activities[68]. Corporate Governance - The company has appointed KPMG as its auditor for the first time in 2019, following the resignation of Deloitte[150]. - The board of directors consists of eight members, including one non-executive director, four executive directors, and three independent non-executive directors[155]. - The company has adopted a board diversity policy, considering factors such as gender, age, and professional experience to enhance board effectiveness[165]. - The roles of the chairman and the CEO are clearly separated, with the chairman responsible for leading the board and the CEO overseeing daily operations[166]. - The company is committed to maintaining high standards of corporate governance in the best interests of its shareholders[154]. - The company has established an audit committee, remuneration committee, and nomination committee to ensure compliance with corporate governance standards[180]. Employee and Operational Insights - The total number of full-time employees increased to 219 as of December 31, 2019, from 202 in 2018, with total compensation rising to HKD 232.10 million from HKD 187.04 million[55]. - The group conducts ongoing professional training for employees on compliance topics, including anti-money laundering regulations[63]. - The attendance rate for board meetings was 100% for most directors, with the chairman attending all 8 meetings[161]. Shareholder Information - The major shareholder, 兴证（香港）金融控股有限公司, holds 2,077,337,644 shares, representing approximately 51.93% of the total equity[108]. - 嘉实资本管理有限公司 and its related entities collectively hold 293,232,000 shares, accounting for 7.33% of the total equity[108]. - The revenue from the top five customers accounted for less than 11% of the group's external customer revenue[96]. - The company has no significant reliance on any single customer, ensuring a diversified revenue stream[96].

Financial Performance - Total revenue for the six months ended June 30, 2019, was HKD 651,905,536, an increase of 16.3% compared to HKD 560,306,817 in 2018[14] - Client commission and fee income decreased to HKD 183,357,227, down 27.6% from HKD 253,462,068 in the previous year[14] - Interest income fell to HKD 143,013,021, a decline of 27.5% from HKD 197,382,074 in 2018[14] - Investment income and net gains increased significantly to HKD 325,535,288, up 197.5% from HKD 109,462,675 in the prior year[14] - The pre-tax profit for the period was HKD 148,556,105, representing a 43.8% increase from HKD 103,274,748 in 2018[14] - The total comprehensive income attributable to owners of the company was HKD 131,482,312, compared to HKD 56,673,239 in the previous year, marking a 132.9% increase[14] - Basic earnings per share rose to HKD 0.0329, up from HKD 0.0142 in 2018[14] - The company reported a profit of HKD 131,482,312 for the six months ended June 30, 2019, compared to a profit of HKD 56,673,239 for the same period in 2018, representing an increase of approximately 132.9%[24] Assets and Liabilities - Non-current assets increased to HKD 172,357,956 from HKD 144,588,856 at the end of 2018[18] - Current assets totaled HKD 27,039,702,126, an increase from HKD 23,199,251,461 at the end of 2018[18] - Total liabilities increased to HKD 19,438,641,102 from HKD 15,628,167,181 at the end of 2018[18] - The total equity attributable to the owners of the company increased to HKD 4,432,983,675 as of June 30, 2019, up from HKD 4,391,073,572 at the end of 2018, reflecting a growth of approximately 0.95%[24] - The total non-current liabilities stood at HKD 3,340,435,305 as of June 30, 2019, slightly up from HKD 3,324,599,564 at the end of 2018[20] Cash Flow - As of June 30, 2019, the net cash generated from operating activities was HKD 2,558,524,131, a significant improvement compared to a net cash used of HKD (3,860,549,647) in the same period of 2018[27] - The net cash used in investing activities was HKD (5,696,920) for the six months ended June 30, 2019, compared to HKD (7,271,780) in the same period of 2018, indicating a reduction in cash outflow[27] - The company reported a net cash inflow from financing activities of HKD 3,613,528,992, compared to HKD 4,533,301,919 in the previous year, a decrease of 20.4%[59] - The group reported a significant increase in net cash inflow for the six months ended June 30, 2019, of HKD 6,166.36 million, significantly up from HKD 665.48 million in 2018[165] Dividends - The company paid dividends amounting to HKD 92,000,000 during the reporting period, compared to HKD 120,000,000 in the same period of the previous year[24] - The company declared an interim dividend of HKD 0.023 per share for the six months ended June 30, 2018, totaling HKD 92,000,000, down from HKD 120,000,000 in 2017[74] - The company has not declared an interim dividend for the six months ended June 30, 2019[75] Accounting Standards - The company adopted the revised retrospective method for the initial application of HKFRS 16 on January 1, 2019, which affected the retained earnings adjustment[20] - The interim financial report is prepared in accordance with the Hong Kong Financial Reporting Standards (HKFRS) and reflects the same accounting policies as the 2018 annual financial statements, with changes expected in the 2019 annual financial statements[32] - The Group has adopted HKFRS 16 Leases from January 1, 2019, which introduces a single accounting model for lessees, requiring recognition of right-of-use assets and lease liabilities for all leases, except for short-term leases and low-value assets[36] Employee Costs - Employee costs, including directors' remuneration, totaled HKD 90,336,866 for the six months ended June 30, 2019, up from HKD 61,916,671 in 2018, indicating a rise of about 45.8%[70] - The remuneration for key management personnel for the six months ended June 30, 2019, was HKD 13,295,952, an increase from HKD 9,342,729 for the same period in 2018[142] Financial Risks - The company faces various financial risks including market risk, credit risk, and liquidity risk[111] - The company faces foreign exchange risk primarily from transactions denominated in currencies other than Hong Kong dollars, with a focus on USD-denominated bond investments[184] - The company has implemented measures to hedge interest rate risks associated with fixed-rate loans and debt securities, utilizing tools such as U.S. Treasury futures[185] Shareholder Information - As of June 30, 2019, key executives hold a total of 27,863,828 shares, representing approximately 0.67% of the company's ordinary shares[190] - As of June 30, 2019, the major shareholder, Hong Kong Securities International Financial Holdings Limited, holds 2,076,129,644 shares, representing 51.90% of the total equity[192] - The company’s major shareholder, Hong Kong Securities, is required to maintain at least 51% of the issued share capital to avoid triggering loan repayment clauses[200] Market Conditions - The overall economic growth in Hong Kong is projected to be between 2% and 3% for 2019, influenced by external economic factors[149] - The average daily trading amount in the Hong Kong market decreased by 22.7% to HKD 97.9 billion in the first half of 2019 compared to HKD 126.6 billion in the same period of 2018[152] - The total fundraising amount from IPOs in Hong Kong for the first half of 2019 was HKD 69.5 billion, a 34.7% increase from HKD 51.6 billion in 2018[152]