Core Viewpoint - The company is responding to the second round of inquiries regarding its application for issuing convertible bonds, aiming to raise up to 1.2 billion yuan for enhancing various business capabilities and addressing operational funding needs [1][2]. Group 1: Financial Performance - The company reported net profits attributable to shareholders of 246.06 million yuan, 401.85 million yuan, 457.97 million yuan, and 231.25 million yuan over the reporting periods, indicating a steady growth trend [5]. - The company's futures brokerage business revenue was 536 million yuan, 571 million yuan, 494 million yuan, and 191 million yuan during the reporting periods, with a total of 140,800 clients and client equity of 27.347 billion yuan as of June 30, 2025 [7]. - The company's futures brokerage business operating profit fluctuated significantly, with operating revenues of 190.64 million yuan, 493.81 million yuan, and 570.72 million yuan, showing a decrease of 13.48% and an increase of 6.54% in different periods [6][7]. Group 2: Business Segments - The futures brokerage business is a traditional and primary source of profit for the company, with revenue primarily from brokerage fees and client margin interest [6][15]. - The risk management business is crucial for serving the real economy, providing services like forward pricing and basis trading, which help enterprises manage procurement costs and mitigate price volatility risks [18][19]. - The overseas financial services business has shown rapid growth, with client equity in securities, futures, and foreign exchange reaching 17.768 billion HKD, and the business has been providing risk management services to domestic enterprises operating abroad [27][31]. Group 3: Market Position and Strategy - The company has established a strategic layout that radiates nationwide from Zhejiang, focusing on enhancing customer service and expanding its market share in various cities [7][16]. - The company actively increases its marketing efforts and leverages its diversified layout to meet the needs of different customer segments, including risk management services for industrial clients and wealth management for institutional clients [8][19]. - The company’s risk management business has been optimized to enhance liquidity in the futures market, ensuring normal operations through effective market-making strategies [19][24].

Core Viewpoint - The implementation of the Futures and Derivatives Law has significantly enhanced the stability, innovation, and international appeal of China's futures market over the past three years [1][2][3]. Group 1: Market Development - The Futures and Derivatives Law has filled a legal gap in China's futures and derivatives sector, providing essential institutional support for high-quality market development [2]. - A total of 50 new futures and options products have been launched in the past three years, bringing the total number of products in the futures market to 152 [2]. - The expansion of futures and options products has improved risk management tools for enterprises and contributed to the transformation and upgrading of industries [2][8]. Group 2: Internationalization - The law has established a solid legal foundation for the internationalization of the futures market, promoting broader and deeper international engagement [3]. - As of mid-2023, the number of tradable products for Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII) has reached 91, with a significant increase in the number of new products [3]. - The active trading of internationalized products reflects global recognition and trust in China's futures market [4]. Group 3: Service to the Real Economy - The futures market has actively served the real economy, with a total of 2.54 million effective clients as of the first quarter of 2023, marking a 1.8% quarter-on-quarter increase [6]. - The "insurance + futures" projects have expanded significantly, providing risk protection for farmers and supporting local agricultural products [7]. - The diversification of the futures market has led to an increase in the proportion of industry clients' positions in key products, enhancing China's pricing power in global commodity trade [8].

Core Insights - The implementation of the Futures and Derivatives Law has significantly enhanced the stability and innovation of China's futures market over the past three years, leading to increased international appeal and influence [1][2][3] Market Development - The Futures and Derivatives Law has filled a legal gap in China's futures and derivatives sector, providing essential institutional support for high-quality market development [2] - A total of 50 new futures and options products have been launched in the past three years, bringing the total number of products in the futures market to 152 [2] - The expansion of futures and options products has improved risk management tools and strategies for enterprises, contributing to industrial transformation and enhancing national pricing power [2][8] Internationalization - The law has established a solid legal foundation for the internationalization of the futures market, promoting systematic and institutionalized openness [3] - As of mid-2023, the number of tradable products for Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII) has reached 91, with a significant increase in newly added products [3] - Active international trading of futures products reflects global recognition and trust in China's futures market, aiding enterprises in price discovery and risk management [4] Market Participation - The number of effective clients in the futures market has reached 2.54 million, showing a 1.8% quarter-on-quarter increase, with institutional participation significantly rising [6] - The total capital in the futures market is approximately 1.69 trillion yuan, marking a 3.9% increase from the end of 2024 [6] Service to the Real Economy - The "Insurance + Futures" projects have seen significant growth, with investments of 180 million yuan covering over 2.7 million acres and providing nearly 10 billion yuan in risk protection for farmers [7] - These projects are tailored to meet market demands and enhance services for small and medium-sized enterprises, modern agriculture, and green development [7][8]

Core Points - The "Futures and Derivatives Law" has been in effect for three years since its implementation on August 1, 2022, and has led to significant regulatory developments in China's futures market [1][2] - The law addresses fundamental issues in the industry, providing a solid institutional foundation and legal guarantees for the high-quality development of the futures market [2] Regulatory Developments - The China Securities Regulatory Commission (CSRC) has actively promoted the formulation of various regulations, including the "Futures Exchange Management Measures" and "Interim Provisions on Position Management in the Futures Market," to guide the orderly implementation of business rules [1] - The Guangzhou Futures Exchange (GFEX) has taken on the role of a self-regulatory organization, ensuring market supervision and compliance with the law through real-time monitoring and handling of abnormal trading activities [1] Legal Framework - The law explicitly prohibits market manipulation, insider trading, and the dissemination of false or misleading information, establishing clear legal responsibilities for violations, including fines and criminal liability for serious offenses [2] - GFEX is committed to enhancing market monitoring and risk management, cooperating with administrative and judicial departments to combat illegal activities in the futures market [2]