SWSC(SH:600369) Sou Hu Cai Jing·2025-09-16 15:16Core Viewpoint - Southwest Securities' overseas subsidiary, Xizheng International Securities, will be delisted due to failure to meet resumption guidelines, marking a significant setback in the company's international strategy [2][3]. Group 1: Company Performance - Xizheng International Securities has accumulated losses exceeding 1 billion HKD over the past decade, with a history of financial struggles leading to its eventual delisting [3][4]. - The company only achieved profitability in 2015 and 2017, with net profits of 0.14 million HKD and 0.01 million HKD respectively, while suffering losses in all other years [4]. - Recent losses include 1.38 million HKD in 2020, 0.59 million HKD in 2021, 2.41 million HKD in 2022, and 0.11 million HKD in the first half of 2023 [4][5]. Group 2: Business Strategy and Future Plans - Southwest Securities plans to use Xizheng International Investment as a platform for cross-border capital operations, focusing on enhancing efficiency and collaboration between domestic and international markets [7]. - The company has indicated that the delisting will allow for a more focused and efficient approach to its overseas business, potentially leading to further equity transfer actions [7][8]. - The decision to divest from Xizheng International Securities is viewed as a necessary and pragmatic move to mitigate ongoing risks and losses [8]. Group 3: Industry Context - The challenges faced by Chinese securities firms in overseas markets highlight issues such as mismatched operational models and insufficient competitive strength against established international players [8][9]. - The experience of Xizheng International Securities serves as a cautionary tale for other firms considering international expansion, emphasizing the need for a tailored approach to foreign markets [9].