Group 1 - The China Securities Regulatory Commission (CSRC) has requested Nanhua Futures (603093.SH) to provide supplementary explanations regarding its overseas business operations and compliance status, as well as the regulatory procedures for using the raised funds to supplement the capital of its overseas subsidiaries [1][2] - Nanhua Futures has submitted its application to the Hong Kong Stock Exchange for a main board listing, with CITIC Securities acting as its sole sponsor [1] - According to a report by Frost & Sullivan, Nanhua Futures ranks 8th among all futures companies in China by total revenue in 2023, and it ranks 1st among all non-financial institution-related futures companies [2] Group 2 - The CSRC has asked for clarification on whether the company's and its subsidiaries' business scope involves areas covered by the "Negative List of Foreign Investment Access (2024 Edition)" and whether they comply with foreign investment access policies before and after the listing [2] - The company is focused on providing comprehensive and customized derivatives and risk management services to industrial clients, financial institutions, and individual investors, while also aiming to offer diversified wealth management services to both domestic and overseas investors [2] - Nanhua Futures ranks 1st among all futures companies in China in terms of overseas revenue for 2023 [2]

Core Viewpoint - Nanhua Futures Co., Ltd. has submitted an application to list on the Hong Kong Stock Exchange, with CITIC Securities as its sole sponsor, after being listed on the Shanghai Stock Exchange [1][4]. Company Overview - Nanhua Futures is a financial services provider based in China, focusing on futures and derivatives, offering customized risk management services to industrial clients, financial institutions, and individual investors [4]. - The company aims to provide diversified wealth management services for both domestic and overseas investors [4]. Products and Services - The main products and services include domestic futures brokerage, risk management services, wealth management in China, and overseas financial services [5]. - As of December 31, 2024, the company's domestic futures brokerage client equity reached RMB 31.6 billion, a 65.4% increase from December 31, 2022, while the compound annual growth rate for the Chinese futures industry was 1.9% [5]. Financial Performance - The company's operating income for 2022, 2023, and 2024 was approximately RMB 6.82 billion, RMB 6.25 billion, and RMB 5.71 billion, respectively [6]. - The annual profit for the same years was approximately RMB 246 million, RMB 403 million, and RMB 458 million [6][11]. - Net commission and fee income for 2022, 2023, and 2024 were RMB 498 million, RMB 612 million, and RMB 542 million, respectively [9]. - Interest income for the same years was RMB 366 million, RMB 605 million, and RMB 726 million, while interest expenses were RMB 39 million, RMB 60 million, and RMB 44 million [9]. Market Position - According to a report by Frost & Sullivan, Nanhua Futures ranked 8th among all futures companies in China by total revenue in 2023 and ranked 1st among non-financial institution-related futures companies [5]. - The company also ranked 1st in overseas income among all futures companies in China in 2023 [5]. Technology and Infrastructure - Nanhua Futures has established a robust and innovative IT infrastructure to enhance business operations, corporate governance, and risk management [6]. - The company utilizes advanced systems for high-frequency monitoring and risk management, ensuring secure and efficient trading through a resilient data center architecture [6].