兴证国际(06058) - 2025 - 中期业绩

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's total revenue slightly decreased, but profit for the period and total comprehensive income significantly grew, indicating improved profitability Overview of Statement of Profit or Loss For the six months ended June 30, 2025, the Group's total revenue slightly decreased year-on-year, but profit for the period and total comprehensive income both achieved significant growth, indicating improved profitability | Indicator | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Commission and Fee Income | 160,282,624 | 141,299,173 | 13.44% | | Interest Income | 117,922,649 | 72,773,734 | 62.04% | | Net Trading and Investment Income | 120,046,994 | 204,802,065 | -41.38% | | Total Revenue | 398,252,267 | 418,874,972 | -4.92% | | Profit for the Period | 102,931,754 | 88,669,217 | 16.08% | | Basic and Diluted Earnings Per Share | 0.0142 | 0.0182 | -22.00% | - Despite a 4.92% year-on-year decrease in total revenue, profit for the period increased by 16.08%, demonstrating improved cost control and efficiency[4] Overview of Other Comprehensive Income The Group's other comprehensive income significantly increased in the first half of 2025, primarily due to fair value changes of equity instruments designated at fair value through other comprehensive income | Indicator | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Other Comprehensive Income for the Period, After Tax | 71,175,065 | 40,664,283 | 75.04% | | Total Comprehensive Income for the Period | 174,106,819 | 129,333,500 | 34.62% | - Fair value changes of equity instruments designated at fair value through other comprehensive income increased from HK$26,021,792 in 2024 to HK$46,050,894 in 2025[5] Condensed Consolidated Statement of Financial Position The Group's total assets significantly increased, driven by debt investments and current financial assets, while liabilities also rose Asset Structure As of June 30, 2025, the Group's total assets significantly increased, driven primarily by a substantial rise in debt investments measured at amortized cost and current financial assets at fair value through profit or loss | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 2,441,685,200 | 964,100,192 | 153.26% | | Current Assets | 18,459,411,393 | 14,768,665,732 | 24.99% | | Total Assets | 20,901,096,593 | 15,732,765,924 | 32.85% | - Non-current debt investments measured at amortized cost increased by 220% from HK$690,934,760 to HK$2,210,958,551[6] - Current financial assets at fair value through profit or loss increased by 43.7% from HK$4,373,209,742 to HK$6,284,497,750[6] Liabilities and Equity Structure The Group's total liabilities significantly increased, driven by repurchase agreements and bank borrowings, leading to a decrease in net current assets and current ratio, and a substantial rise in the gearing ratio. Nevertheless, total equity attributable to ordinary shareholders still grew | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Current Liabilities | 15,106,326,112 | 10,316,187,272 | 46.43% | | Non-current Liabilities | 1,470,835,209 | 1,180,500,199 | 24.59% | | Total Liabilities | 16,577,161,321 | 11,496,687,471 | 44.19% | | Net Assets | 4,323,935,272 | 4,236,078,453 | 2.07% | | Equity Attributable to Ordinary Shareholders | 3,323,935,272 | 3,236,078,453 | 2.71% | - Net current assets decreased by 24.69% to HK$3,353.09 million, and the current ratio decreased from 1.4 times to 1.2 times[7][45] - Total bank borrowings increased by 91.29% to HK$5,014.30 million, and the gearing ratio increased from 212% to 295%[7][45][46] Notes to the Condensed Consolidated Financial Statements This section details the Group's general information, accounting policies, revenue breakdown, segment performance, and financial statement components 1. General Information The Company, incorporated in the Cayman Islands, primarily operates in Hong Kong, offering brokerage, margin financing, corporate finance, asset management, and financial product investment services, with its ultimate holding company being Industrial Securities Co., Ltd - The Company was incorporated in the Cayman Islands on July 21, 2015, with its principal place of business in Hong Kong[9] - The Group primarily engages in providing brokerage services, margin financing services, corporate finance services, asset management services, and financial products and investments[9] - The ultimate holding company is Industrial Securities Co., Ltd., listed on the Shanghai Stock Exchange in China[9] 2. Basis of Preparation and Changes in Accounting Policies This interim financial information is prepared in accordance with HKAS 34 and adopts the same accounting policies as the 2024 annual financial statements, with new HKFRS amendments having no significant impact on the interim condensed consolidated financial statements - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants[10] - The accounting policies adopted are consistent with those of the 2024 annual consolidated financial statements, except for the initial adoption of amendments to Hong Kong Financial Reporting Standards[11] - The adoption of HKAS 21 (Amendment) "The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability" had no significant impact on the interim condensed consolidated financial statements[12] 3. Revenue and Other Income The Group's revenue sources are diversified, including commission and fee income, interest income, and net trading and investment income. In the first half of 2025, corporate finance commission income grew significantly, while net trading and investment income decreased Revenue Source Analysis | Revenue Category | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Commission and Fee Income | 160,282,624 | 141,299,173 | 13.44% | | Interest Income | 117,922,649 | 72,773,734 | 62.04% | | Net Trading and Investment Income | 120,046,994 | 204,802,065 | -41.38% | | Total Revenue | 398,252,267 | 418,874,972 | -4.92% | - Placement, underwriting, and sub-underwriting commission income (debt securities) from corporate finance increased by 120.37% from HK$38,682,565 in 2024 to HK$85,240,629 in 2025[13] - Interest income from financial institutions decreased by 24.99% from HK$95,264,428 in 2024 to HK$71,563,816 in 2025[16] 4. Segment Reporting The Group reports results by business segments including wealth management, corporate finance, asset management, and financial products and investments. In the first half of 2025, corporate finance segment revenue and results grew significantly, while financial products and investments segment revenue and results decreased - The Group's operating segments include wealth management, corporate finance, asset management, financial products and investments, and others[18] Segment Revenue and Results (First Half 2025) | Segment | Revenue (HKD) | Results (HKD) | | :--- | :--- | :--- | | Wealth Management | 78,540,086 | 71,522,648 | | Corporate Finance | 90,079,806 | 58,764,177 | | Asset Management | 6,936,386 | (10,658,375) | | Financial Products and Investments | 224,573,515 | (15,929,680) | | Others | – | 19,551,839 | | Consolidated Total | 398,252,267 | 123,250,609 | - Corporate finance segment revenue increased by 84.89% year-on-year, with results growing from HK$10,925,062 in 2024 to HK$58,764,177 in 2025[19][20] - Financial products and investments segment revenue decreased by 14.50% year-on-year, with results turning from a profit of HK$10,986,709 in 2024 to a loss of HK$15,929,680 in 2025[19][20] 5. Profit Before Tax Profit before tax achieved significant growth, primarily influenced by decreased staff costs, reduced reversal of impairment losses on financial assets, and increased other income Profit Before Tax Components | Item | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Staff Costs | 90,122,845 | 101,204,007 | | Reversal of Impairment Losses on Financial Assets | (2,056,386) | (11,239,922) | | Other Gains or Losses | (52,826,614) | 735,234 | - Staff costs decreased by 11.05% year-on-year, from HK$101,204,007 to HK$90,122,845[22] - Exchange gains turned from a loss of HK$1,120,980 in 2024 to a gain of HK$60,830,488 in 2025[22] 6. Taxation The Group's tax expense significantly increased, primarily due to a rise in deferred tax, while the Hong Kong profits tax rate remained unchanged Tax Expense | Tax Category | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Hong Kong Profits Tax: Current | 701,091 | 1,745,811 | | Hong Kong Profits Tax: Deferred Tax | 19,617,764 | 6,387,194 | | Total Tax | 20,318,855 | 8,133,005 | - Deferred tax significantly increased by 207.14% from HK$6,387,194 in 2024 to HK$19,617,764 in 2025[24] - The Hong Kong profits tax rate remained at 16.5%, with the first HK$2,000,000 for qualifying corporations taxed at 8.25%[24] 7. Dividends The Company distributed a final dividend for the 2024 financial year but did not declare an interim dividend for the first half of 2025 - A final dividend of HK$0.01 per ordinary share, totaling HK$40,000,000 for the year ended December 31, 2024, was distributed in the first half of 2025[25] - The Board did not declare any interim dividends for the six months ended June 30, 2025, and 2024[26] 8. Earnings Per Share Basic earnings per share attributable to ordinary shareholders of the Company was HK$0.0142, a decrease from the prior period, with no dilutive potential ordinary shares Earnings Per Share Calculation | Indicator | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | 102,931,754 | 88,669,217 | | Less: Allocation to Other Equity Instrument Holders | (46,250,000) | (15,800,000) | | Profit for the Period Attributable to Ordinary Shareholders of the Company | 56,681,754 | 72,869,217 | | Weighted Average Number of Ordinary Shares | 4,000,000,000 | 4,000,000,000 | | Basic Earnings Per Share | 0.0142 | 0.0182 | - Profit for the period attributable to ordinary shareholders of the Company decreased by 22.1% year-on-year, leading to a decrease in basic earnings per share[27] - For the six months ended June 30, 2025, there were no dilutive potential ordinary shares outstanding, thus diluted earnings per share was the same as basic earnings per share[27] 9. Trade and Other Receivables The Group's total trade and other receivables increased, with a significant rise in receivables from brokers in financial products and investments, while secured margin loans substantially decreased, along with a corresponding reduction in impairment provisions Trade and Other Receivables Analysis | Receivables Category | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Secured Margin Loans (Net) | 448,752,025 | 617,639,954 | -27.34% | | Securities Trading Business (Excluding Margin Loans) | 286,520,551 | 231,205,758 | 23.93% | | Futures and Options Contracts Trading Business | 190,341,927 | 126,212,265 | 50.81% | | Financial Products and Investments Business | 425,699,022 | 165,722,217 | 156.87% | | Total Trade and Other Receivables | 1,379,177,656 | 1,171,860,830 | 17.69% | - Impairment provision for secured margin loans decreased from HK$533,674,166 as of December 31, 2024, to HK$202,619,663 as of June 30, 2025[28] - The normal settlement period for trade receivables from corporate finance and asset management businesses is within one month to one year after service provision[30] 10. Trade and Other Payables The Group's total trade and other payables significantly increased, driven by amounts due to clients and brokers in securities trading and financial products and investments, reflecting increased business activity Trade and Other Payables Analysis | Payables Category | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Securities Trading Business | 2,562,254,437 | 1,742,810,386 | 47.02% | | Futures and Options Contracts Trading Business | 370,847,385 | 336,877,496 | 10.09% | | Financial Products and Investments Business | 620,150,994 | 166,422,915 | 272.64% | | Total Trade and Other Payables | 3,553,252,834 | 2,246,110,797 | 58.11% | - Amounts due to clients in securities trading business increased from HK$1,736,296,194 to HK$2,451,051,391[34] - Amounts due to brokers in financial products and investments business significantly increased from HK$149,564,486 to HK$608,959,100[34] - Amounts due to the immediate holding company in the Group's securities trading business increased to HK$7,032,085 from HK$4,050,272 at the end of last year[35] Management Discussion and Analysis This section reviews market conditions, the Group's overall performance, detailed business segment results, financial position, liquidity, and future outlook I. Market Review In the first half of 2025, despite a global economic slowdown, Hong Kong's capital market performed strongly, with new share fundraising ranking first globally and the Hang Seng Index showing leading gains, solidifying its status as an international financial center - In the first half of 2025, Hong Kong's IPO market raised HK$107.1 billion, a seven-fold year-on-year increase, ranking first globally[36] - The Hang Seng Index ranked among the top global major stock markets with a gain of nearly 20%[36] - The average daily turnover of Hong Kong stocks was HK$240.2 billion, an increase of approximately 118% compared to the same period in 2024[36] II. Performance and Overview The Group's operating revenue decreased by 4.92% year-on-year in the first half of 2025, but net profit after tax increased by 16.08%, primarily due to efficient internal management and strong growth in corporate finance business Group Overall Performance Overview | Indicator | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 398.25 million | 418.87 million | -4.92% | | Net Profit After Tax | 102.93 million | 88.67 million | 16.08% | - Operating revenue from corporate finance services increased by 84.89% year-on-year, while revenue from wealth management, asset management, and financial products and investments businesses all decreased[37] III. Business Review This section provides a detailed review of the Group's major business segments, highlighting strong performance in corporate finance, while wealth management, asset management, and financial products and investments businesses experienced revenue declines Wealth Management Wealth management business revenue decreased by 22.24% year-on-year, primarily due to lower brokerage service commissions and margin financing interest income, despite increased client Hong Kong stock trading volume and cross-border wealth management connect product sales Wealth Management Business Revenue | Revenue Category | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Wealth Management Business Revenue | 77.89 million | 100.17 million | -22.24% | | Brokerage Service Commission and Fee Income | 64.49 million | 85.22 million | -24.33% | | Margin Financing Interest Income | 13.40 million | 14.94 million | -10.31% | - Client Hong Kong stock trading volume was approximately HK$34.7 billion, an increase of approximately 71% year-on-year[39] - Cross-border Wealth Management Connect product sales were nearly HK$0.9 billion, an increase of approximately 11% year-on-year[39] Corporate Finance Corporate finance business revenue significantly increased by 84.89% year-on-year, primarily driven by substantial growth in debt securities placement, underwriting, and sub-underwriting commission income, with improved debt underwriting ranking and green bond underwriting scale Corporate Finance Business Revenue | Revenue Category | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Corporate Finance Business Revenue | 90.08 million | 48.72 million | 84.89% | | Debt Securities Placement, Underwriting, and Sub-underwriting Commission Income | 85.24 million | 38.68 million | 120.37% | | Sponsorship Fee Income | 1.05 million | – | N/A | | Equity Underwriting Income | 0.55 million | 0.04 million | 1287.5% | - Ranking for Chinese-funded debt underwriting in Hong Kong improved by three places to sixth, completing 105 bond underwriting projects with a scale equivalent to US$1.112 billion, a 13% year-on-year increase[40] - Underwrote 34 green bonds, with a financing issuance scale exceeding HK$60.7 billion[40] - Successfully assisted six companies in listing in Hong Kong, improving the ranking for Chinese-funded equity underwriting in Hong Kong by seven places to twelfth[41] Asset Management Asset management business revenue decreased by 22.42% year-on-year, despite maintaining an AUM of approximately HK$5.7 billion, with overall stable fund product performance, including a 16.7% net asset value growth for the China Core Asset Fund Asset Management Business Revenue | Indicator | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Asset Management Business Revenue | 5.71 million | 7.36 million | -22.42% | - As of June 30, 2025, there were 26 asset management products with an AUM of approximately HK$5.7 billion[42] - The China Core Asset Fund's net asset value increased by 16.7% in the first half of 2025[42] Financial Products and Investments Financial products and investments revenue decreased by 14.50% year-on-year, with the Group achieving stable annualized returns for fixed income and equity investments under a neutral-to-conservative risk appetite Financial Products and Investments Revenue | Indicator | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Financial Products and Investments Revenue | 224.57 million | 262.64 million | -14.50% | - Cumulative annualized return on fixed income investments was 8.19%, and on equity investments was 13.75%[43] Financial Position As of June 30, 2025, the Group's total assets and total liabilities both significantly increased, reflecting an expansion in business scale Financial Position Overview | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 20,901.10 million | 15,732.77 million | 32.85% | | Total Liabilities | 16,577.16 million | 11,496.69 million | 44.19% | Liquidity, Financial Resources, and Capital Structure The Group's net current assets and current ratio decreased, while bank borrowings and gearing ratio significantly increased, but net cash inflow and bank balances continued to grow Liquidity and Capital Structure | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Current Assets | 3,353.09 million | 4,452.48 million | -24.69% | | Current Ratio | 1.2 times | 1.4 times | -14.29% | | Bank Balances | 2,269.42 million | 1,961.29 million | 15.71% | | Total Bank Borrowings | 5,014.30 million | 2,621.31 million | 91.29% | | Gearing Ratio | 295% | 212% | 39.15% | | Total Equity Attributable to Ordinary Shareholders | 3,323.94 million | 3,236.08 million | 2.71% | - For the six months ended June 30, 2025, the Group's net cash inflow was HK$308.13 million[45] Outlook The Group anticipates maintaining stable operations in the second half of 2025, seizing digital asset opportunities, expanding wealth management and corporate finance, optimizing asset management products, strengthening risk control and talent development, and implementing green finance principles - Seize strategic opportunities from the accelerated iteration in digital assets, systematically planning technology R&D and business reserves[47] - Build a rich and balanced wealth management product matrix, focusing on expanding institutional clients and enhancing cross-border financial service capabilities[47] - Leverage the brand and professional advantages of bond underwriting business to consolidate and enhance market leadership; seize opportunities from the warming Hong Kong stock market, focusing on hot sectors[47] - Adhere to a "neutral-to-conservative" low-volatility investment strategy, strictly controlling risks and capturing market rotation opportunities through diversified investments[47] - Uphold compliance and risk control bottom lines, optimize resource allocation, build a professional, market-oriented, and international talent team, and implement green financial service concepts[47] Other Information This section covers material investments, asset pledges, employee and remuneration policies, contingent liabilities, post-reporting events, and risk management Material Investments and Material Acquisitions or Disposals of Subsidiaries and Affiliated Companies For the six months ended June 30, 2025, the Group did not undertake any material investments, acquisitions, or disposals of subsidiaries and affiliated companies - The Group did not undertake any material investments, acquisitions, or disposals of subsidiaries and affiliated companies during the reporting period[48] Pledge of Assets by the Group The Group's pledged assets primarily consist of debt securities used as collateral for repurchase agreements - The Group's pledged assets are primarily debt securities used as collateral for repurchase agreements[49] Employees and Remuneration Policy As of June 30, 2025, the Group's employee count decreased, with a corresponding reduction in total remuneration, and the remuneration policy is reviewed and awarded based on market practice, individual performance, and the Group's financial performance Employee and Remuneration Overview | Indicator | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Number of Full-time Employees | 164 | 224 | -26.8% | | Total Remuneration | 90.12 million HKD | 101.20 million HKD | -11.05% | - Remuneration policy is reviewed periodically based on market practice, with bonuses awarded based on individual performance appraisals, current market conditions, and the Group's financial performance[50] Contingent Liabilities As of the end of the reporting period and the date of this announcement, the Group had no material contingent liabilities - The Group had no material contingent liabilities[51] Events After the Reporting Period As of the date of this announcement, the Board was not aware of any events after the reporting period that would have a material impact on the Group's business or financial performance - The Board was not aware of any material events after the reporting period concerning the Group's business or financial performance[52] Risk Management The Group has established a comprehensive risk management organizational structure and a "three lines of defense" mechanism to identify, assess, monitor, and respond to various risks, including credit, liquidity, market, operational, compliance, legal, and reputational risks, ensuring stable operations and strategic goal achievement Risk Management Structure and Mechanism The Group has a comprehensive risk management organizational structure comprising the Board, management, Risk Management Committee, risk management department, and various departments, implementing a "three lines of defense" risk management governance framework to ensure risks are within reasonable limits - Established a comprehensive risk management organizational structure comprising the Board, management, Risk Management Committee, risk management department, various departments, and subsidiaries[53] - Implemented a "three lines of defense" risk management framework: business units and subsidiaries (first line), risk management department (second line), and audit department (third line)[54] - Implemented risk appetite, limit management, and authorization management systems, adhering to the philosophy of "prudent operation and long-term development"[54] Credit Risk The Group monitors credit risk through its Risk Management Committee and Investment and Financing Business Review Committee, implementing daily mark-to-market, public opinion monitoring, stress testing, and regular impairment measurement to mitigate credit risk - Established a Risk Management Committee and an Investment and Financing Business Review Committee to review and monitor credit risk management policies[55] - Closely monitors credit business risk limit indicators, implements daily mark-to-market and timely warnings, and establishes a public opinion information monitoring mechanism[55] - Conducts regular stress tests and timely provides for expected credit losses in accordance with the latest financial instrument standards[55] Liquidity Risk The Group has established liquidity risk management policies and procedures, ensuring funding needs and regulatory requirements are met through multi-level authorization mechanisms, diversified financing channels, and strict liquidity monitoring (e.g., daily reports, cash flow forecasts, stress tests) - Formulated liquidity risk management policies and procedures, and maintained liquidity and financial resource requirements[56] - Established multi-level authorization mechanisms and internal policies to set authorization limits for commitments or cash outflows[56] - Met financing needs through bank borrowings, bond issuance, and other means, implementing management measures such as daily monitoring reports, future cash flow forecasts, and liquidity stress tests[56] Market Risk The Group monitors and controls market risk by formulating policies and procedures, conducting pre-assessments, setting limits, and regularly reviewing market strategies to address changes in exchange rates, interest rates, and financial asset prices - Formulated policies and procedures to monitor and control market risks arising from business operations[57] - Arranged professionals to discuss and assess relevant market risks before engaging in new transactions or launching new businesses[57] - Established market risk limit indicators and regularly reviewed and adjusted market strategies to optimize investment strategies[57] Operational Risk The Group has established a comprehensive operational risk management framework and mechanism, identifying, assessing, monitoring, and responding to operational risks comprehensively through sound management mechanisms, internal control procedures, risk reporting, and training, also maintaining a business continuity management mechanism - Established an operational risk management framework including the Board, management, Risk Management Committee, Risk Management Department, and various departments[58] - Established sound management mechanisms and effective internal control procedures to identify, assess, and monitor operational risks through risk reports, limit indicators, and control matrices[58] - Established a business continuity management mechanism, with emergency plans and business continuity plans in place, and conducts regular drills[59] Compliance and Legal Risk The Group actively promotes a robust and comprehensive compliance and legal risk management framework, ensuring business operations comply with laws and regulations through its compliance management structure, policies, internal training, and collaboration with external legal advisors - Actively promoted the establishment of a robust and comprehensive compliance and legal risk management framework, formulating relevant policies, procedures, and templates[61] - Established a three-line defense for compliance management, with the Compliance and Legal Department leading policy formulation, providing compliance advice, monitoring licensed business operations, and organizing training[61] - Equipped with dedicated legal personnel, and engaged 5 long-term legal advisors and maintained close cooperation with other external law firms[61] Reputational Risk The Group has established a complete corporate governance structure and reputational risk management mechanism, adhering to principles of prevention first and proactivity, managing reputational risk comprehensively, with no major reputational risk events occurring during the reporting period - Actively promoted the establishment of a reputational risk management mechanism, adhering to principles such as prevention first, proactivity, and timely reporting[62] - Conducts comprehensive management of reputational risk, including event classification, risk identification, risk assessment, risk reporting, risk handling, and risk evaluation[62] - During the reporting period, the Group further improved its reputational risk management system, maintaining stable overall public sentiment with no major reputational risk events[62] Purchase, Sale or Redemption of Listed Securities of the Company and its Subsidiaries For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any listed securities of the Company and its subsidiaries - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any listed securities of the Company and its subsidiaries[63] - The Company held no treasury shares[64] Competing Interests Except for disclosed continuing connected transactions, as of June 30, 2025, no director, controlling shareholder, or their close associates held any interests in businesses competing with the Group's operations - Except for continuing connected transactions disclosed in the prospectus, no director, controlling shareholder, or their close associates held competing interests[65] Directors' Securities Transactions The Company has adopted a code of conduct for directors' securities transactions, and all directors confirmed compliance with this code and the Listing Rules' Model Code during the reporting period - The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[66] - All directors confirmed compliance with the relevant code for the six months ended June 30, 2025[66] Corporate Governance For the six months ended June 30, 2025, the Company complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules - The Company complied with the code provisions contained in the Corporate Governance Code set out in Appendix C1 of the Listing Rules[67] Audit Committee The Company's Audit Committee reviewed the Group's unaudited condensed consolidated results for the six months ended June 30, 2025, confirming compliance with applicable accounting standards, Listing Rules, and other legal requirements - The Audit Committee comprises Mr. Xiong Bo (Non-executive Director) and Mr. Chan Ho Wing and Mr. Tian Li (Independent Non-executive Directors), with Mr. Chan Ho Wing as Chairman[68] - The Audit Committee reviewed the Group's unaudited condensed consolidated results for the six months ended June 30, 2025[68] - The Committee considered that the results complied with applicable accounting standards, requirements of the Listing Rules, and other applicable legal requirements, and that adequate disclosures were made[68]