Core Viewpoint - The Hong Kong stock market is becoming a significant platform for financial institutions to expand globally, with Nanhua Futures set to list on December 22, marking a new phase of development through its "A+H" dual capital platform [1] Group 1: Company Overview - Nanhua Futures, established in 1996, is one of the first companies in China's futures industry and focuses on core businesses in futures and derivatives, becoming a comprehensive global financial service platform [2] - According to Frost & Sullivan, Nanhua Futures ranks eighth among all futures companies in China by total revenue in 2024 and holds the top position among non-financial institution-related futures companies [2] Group 2: Service Offerings - Nanhua Futures has built a comprehensive service system covering the futures and derivatives value chain, including domestic futures brokerage, risk management services, wealth management, and overseas financial services [3] - The product portfolio includes various asset classes such as agricultural products, industrial products, energy, metals, stocks, and fixed income securities, catering to diverse needs of industrial clients, financial institutions, and individual investors [3] Group 3: Global Expansion and Performance - Since 2006, Nanhua Futures has actively pursued internationalization, establishing a business network across major financial centers including Hong Kong, Chicago, Singapore, and London, holding 17 overseas exchange memberships and 14 clearing seats [4] - The number of registered clients in domestic futures brokerage increased from 4,266 in 2022 to 5,279 by mid-2025, while the number of registered financial institution clients rose from 1,140 to 1,872 [4] - Client equity in domestic futures brokerage reached 31.6 billion yuan by the end of 2024, a 65.4% increase from 2022, significantly exceeding the industry’s 1.9% compound annual growth rate [4] Group 4: Financial Performance - Nanhua Futures achieved steady growth in profits, with annual profits increasing from 246 million yuan in 2022 to 458 million yuan in 2024, reflecting a compound annual growth rate of 36.5% [5] - Total assets grew from 34.189 billion yuan at the end of 2022 to 48.863 billion yuan by the end of 2024, with a compound annual growth rate of 19.5% [5] - Return on equity (ROE) improved from 7.75% in 2022 to 11.71% in 2024, with a figure of 5.51% for the first half of 2025 [5] Group 5: Future Outlook - The Chinese futures market is the largest commodity market globally, and with the increasing pace of Chinese enterprises going global, Nanhua Futures is positioned for broader development prospects [6] - The company plans to use the net proceeds from its H-share listing to strengthen its capital base in overseas markets, enhancing its global service network [6] - Nanhua Futures is expected to benefit from market opening incentives and continue leading in the global financial services sector while providing long-term value returns to investors [6]