Investment Rating - The investment rating for Huatai Securities is "Buy" and is maintained [10]. Core Views - In the first half of 2025, Huatai Securities experienced significant growth in performance, with operating income reaching 16.22 billion yuan, a year-on-year increase of 31.0%, and net profit attributable to shareholders of 7.55 billion yuan, up 42.2% year-on-year [7][8]. - The company's return on equity (ROE) improved by 1.12 percentage points to 4.3% [7]. - The brokerage business rebounded with a stable market share in margin trading, while the asset management layout is leading, with direct investment and alternative subsidiaries turning profitable [2][8]. - Investment returns have significantly improved, with a notable increase in investment yield due to the expansion of funds and bonds [2][8]. - Huatai Securities has solidified its advantages in investment banking, with a significant increase in equity and bond underwriting scale [2][8]. - The company is a pioneer in financial technology, successfully developing leading platforms such as "Zhangle Wealth" and "Xingzhi," which are expected to continue generating positive effects in wealth management and fintech [2][8]. Summary by Sections Financial Performance - In H1 2025, Huatai Securities achieved operating income of 16.22 billion yuan and net profit of 7.55 billion yuan, with a year-on-year increase of 31.0% and 42.2% respectively [7][8]. - The weighted average ROE increased to 4.3%, up 1.12 percentage points year-on-year [7]. Business Segments - Brokerage income reached 3.75 billion yuan, up 37.8% year-on-year, while investment banking income was 1.17 billion yuan, up 25.4% [8]. - Asset management AUM was 627 billion yuan, a 12.7% increase from the beginning of the year, with a net profit of 710 million yuan, up 47.2% year-on-year [8]. - The company’s trading financial assets increased by 19.0% to 359.1 billion yuan, with significant allocations to funds and bonds [8]. Market Position - Huatai Securities maintained a stable market share in margin trading at 6.9% and a market share of 6.8% in brokerage services [8]. - The company’s equity and bond underwriting amounts reached 49 billion yuan and 666.6 billion yuan, respectively, with year-on-year increases of 150.7% and 24.3% [8].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 （於中華人民共和國註冊成立之股份有限公司， 中文公司名稱為華泰證券股份有限公司，在香港以HTSC名義開展業務） （股份代號：6886） 海外監管公告 本公告乃根據上市規則第13.10B條規則作出。 茲載列本公司在上海證券交易所網站刊登之《華泰證券股份有限公司2025年半年 度報告》，僅供參閱。 釋義 於本公告，除文義另有所指外，下列詞彙具有以下涵義。 「本公司」 指 於中華人民共和國以華泰證券股份有限公司的公司名稱註冊 成立的股份有限公司，於2007年12月7日由前身華泰證券有 限責任公司改制而成，在香港以「HTSC」名義開展業務，根 據公司條例第16部以中文獲准名稱「華泰六八八六股份有限 公司」及英文公司名稱「Huatai Securities Co., Ltd.」註冊為註 冊非香港公司，其H股於2015年6月1日在香港聯合交易所 有限公司主板上市（股票代碼：6886），其A股於2010年2月 26日在 ...

Core Viewpoint - The rise of AI technology in the securities industry is transforming business operations, with firms like Huatai Securities leading the way through significant technological investments and innovations [1][4][6]. Group 1: Technological Investment and Development - Huatai Securities has established four major R&D bases in Nanjing, Shanghai, Beijing, and Shenzhen, with a leading scale of R&D personnel and investment in the industry [3][4]. - The company plans to invest over 1 billion yuan in technology in 2024, alongside other major firms like CITIC Securities and Guotai Junan [4]. - R&D personnel account for over 20% of Huatai Securities' total workforce, indicating a strong commitment to technological development [4]. Group 2: AI and Digital Transformation - Huatai Securities has initiated the exploration and application of large model technology in financial business scenarios, strategically waiting for application maturity before investing heavily [6]. - The company has implemented digital employees that work 24/7, significantly enhancing operational efficiency and reducing human error in tasks such as report production and compliance checks [8][9]. Group 3: Business Empowerment through Technology - Technology has significantly empowered Huatai Securities' wealth management, investment banking, and institutional business lines, leading to notable improvements in service delivery and operational efficiency [9][10]. - In wealth management, the introduction of intelligent customer service has enabled 24/7 online support, enhancing customer engagement and service efficiency [10]. - The investment banking sector has benefited from a fully self-developed platform, "Investment Banking Cloud," which streamlines processes and enhances compliance and risk management [10][11]. Group 4: Innovative Products and Platforms - Huatai Securities has developed innovative platforms such as the CAMS credit analysis management system and the FICC Elephant platform, which leverage big data and AI for comprehensive market coverage and risk management [11]. - These platforms support the firm's transition to a fully digitalized strategy trading and quantitative investment risk management approach [11].

Core Insights - The article highlights the significant milestones of Bloomberg's 30th anniversary in mainland China and Huatai Securities' 10th anniversary of its Hong Kong listing, emphasizing their roles in the evolution of China's financial market [1] - The discussion between Bloomberg's Asia-Pacific President and Huatai Securities' CEO focuses on internationalization strategies, technological advancements, and future outlooks for the financial industry [1][10] Group 1: Internationalization Journey and Experience - Over the past decade, Hong Kong's financial market has transformed significantly, with IPO sizes expected to double by 2025, reaching over $22 billion, and wealth management expected to grow to $23 trillion by 2030 [1] - Huatai Securities recognized the need for internationalization over ten years ago, driven by China's economic growth and the evolving role of securities firms in capital markets [2] - The company identified gaps compared to international investment banks and developed a strategy focused on cross-border transactions to enhance pricing power and trading capabilities [2][4] Group 2: Technological Advancement Driving Business Development - Huatai Securities has prioritized technology since 2009, launching a mobile app to capitalize on the internet wave, and has continued to innovate in financial technology [6][7] - In 2017, the company initiated the development of two core platforms: HEADS for trading capabilities and CAMS for credit risk management, enhancing their operational efficiency and risk management [7][8] - The company has embraced a comprehensive digital transformation, integrating AI into various business functions, which is seen as a crucial step in their ongoing evolution [8] Group 3: Future Outlook and Strategic Vision - Huatai Securities views its internationalization journey as just beginning, with a focus on supporting Chinese enterprises expanding globally [10][11] - The company aims to enhance its international presence by recruiting talent with global perspectives and integrating domestic and international operations [11] - Over the past decade, Huatai has facilitated nearly 600 financing activities for enterprises, raising approximately $280 billion, but acknowledges that this is only a starting point for their international ambitions [11]

Core Viewpoint - The article emphasizes the role of digital finance as a strong engine for innovation and upgrading within the financial system, highlighting Huatai Securities' commitment to leveraging technology to enhance financial services and create value for society [1][2][12]. Group 1: Investment in Digital Finance - Huatai Securities ranks among the top in the securities industry for total investment in digital construction, driven by a belief in the efficiency, openness, and symbiosis of the digital finance era [2][12]. - The company has consistently integrated technological considerations into decision-making processes, recognizing the potential for industry transformation through technology since initiating its digital transformation in 2019 [4][12]. Group 2: Technological Advancements - Huatai Securities has developed a series of technological milestones, including the launch of mobile financial applications and trading platforms, demonstrating a history of aligning business growth with technological progress [3][5]. - The company is actively exploring the application of AI, big data, and low-latency technologies across various financial services, while also focusing on independent research and development in key areas [7][8]. Group 3: Breaking Down Barriers - The challenge of digital transformation in the financial industry is identified as breaking down information flow barriers, which have historically served as protective measures for financial institutions [8][10]. - Huatai Securities has embraced an open ecosystem approach, enhancing connectivity with clients and partners to create a larger scale and better services through collaborative innovation [9][10]. Group 4: Governance and Risk Management - The company has established a comprehensive governance system for data management, ensuring multi-departmental collaboration and a clear set of rules for data management to maximize the value of data elements [11]. - Huatai Securities has built a self-developed platform for investment banking that supports comprehensive online management and compliance, contributing to stable and high-quality business development [11].

Core Viewpoint - The article emphasizes the significant role of digital finance in the innovation and upgrade of the financial system, highlighting Huatai Securities as a pioneer in digital transformation within the industry [1][2]. Group 1: Digital Transformation and Investment - Huatai Securities has consistently invested in technology, establishing a digital operations department in 2019 to drive organizational change [1][2]. - The company ranks among the top in the securities industry for its total investment in digital construction, reflecting its belief in the efficiency and openness of the digital finance era [1][3]. - The firm has developed a new infrastructure for digital finance, focusing on a platform-based and integrated development model [3]. Group 2: Technological Advancements - Huatai Securities has a history of aligning its business with technological advancements, launching various platforms such as the "Zhangle" mobile finance client in 2009 and the "Elephant Platform" for FICC business in 2022 [2][3]. - The company is now leveraging AI and big data technologies to enhance financial services and is committed to independent research and development in key areas [5][7]. Group 3: Ecosystem and Collaboration - The firm promotes an open ecosystem, believing that only through collaboration can larger scales and better services be achieved [7][8]. - Huatai Securities has established a comprehensive self-research platform for investment banking, supporting robust and high-quality development through online processes and compliance management [8]. Group 4: Data Governance and Security - The company has implemented a three-tier data governance system to enhance collaboration across departments and ensure data management rules are clear [8]. - A complete operational monitoring system has been established to ensure security and control, allowing for agile infrastructure operation and comprehensive business oversight [8].

Core Insights - Huatai Securities reported a significant recovery in performance for Q1 2025, with operating revenue of 8.23 billion yuan, up 34.8% year-on-year, and net profit attributable to shareholders of 3.64 billion yuan, up 59.0% year-on-year [1][2] Revenue Breakdown - The company's revenue from various business lines includes brokerage at 1.94 billion yuan (up 42.6%), investment banking at 540 million yuan (down 5.9%), asset management at 420 million yuan (down 61.7%), interest income at 960 million yuan (up 319.5%), and proprietary trading at 3.51 billion yuan (up 66.8%) [2] Market Activity - The average daily trading volume in the market reached 15.2 trillion yuan, an increase of 70.3% year-on-year, with margin trading balance at 1.92 trillion yuan, up 24.8% year-on-year [2] - The company's brokerage income increased to 1.94 billion yuan, with a market share of 7.0%, a slight decrease of 0.15 percentage points from the beginning of the year [2] Asset Management Performance - By the end of Q1 2025, the market's non-monetary fund size was 18.9 trillion yuan, down 1.7% from the beginning of the year, while the company's non-monetary fund management scale was 632.67 billion yuan and 552.26 billion yuan for its subsidiaries, both down approximately 2.4% [3] Investment Banking and Bond Underwriting - The equity financing market saw a contraction, with IPO and refinancing scales down 30.2% and up 60.4% respectively, while bond financing grew by 19.5% [3] - Huatai Securities' IPO and refinancing scales were down 63.7% and up 113.5% respectively, with market shares of 9.3% for IPOs and 4.4% for refinancing [3] Proprietary Trading and Investment Returns - The company's financial asset scale reached 378 billion yuan, up 5.1% from the beginning of the year, with investment income of 3.51 billion yuan, up 66.8% year-on-year, reflecting a strong resilience in investment returns [4] - The annualized investment return rate was 4.6%, an increase of 2.43 percentage points year-on-year [4] Technological Advancements - Huatai Securities is recognized as a pioneer in financial technology, successfully developing leading platforms such as "Zhangle Wealth" and "Xingzhi," which are expected to continue generating positive effects in wealth management and fintech [4] Future Projections - The company forecasts net profits attributable to shareholders of 13.48 billion yuan and 15.06 billion yuan for 2025 and 2026, respectively, with corresponding price-to-book ratios of 0.81 and 0.75 [4]

Core Viewpoint - Huatai Securities has demonstrated impressive performance in recent years, achieving significant revenue and profit growth, driven primarily by its international business expansion and wealth management services [1][2][5]. Financial Performance - In 2024, Huatai Securities reported operating revenue of 41.466 billion yuan, a year-on-year increase of 13.37%, and a net profit attributable to shareholders of 15.351 billion yuan, up 20.40% year-on-year [1][5]. - The company has outperformed the industry average for three consecutive years, with revenue growth rates exceeding the industry average by 5.88 percentage points in 2022 and 11.42 percentage points in 2023 [1][2]. - The operating revenue in 2023 was 36.578 billion yuan, reflecting a 14.19% increase from the previous year, while the net profit for the same year was 12.751 billion yuan, also up 14.19% [5]. Market Position - Huatai Securities has improved its ranking in the industry, moving from fourth place in 2022 to third place in 2024 in terms of operating revenue [2][5]. - The company’s international business has become a significant driver of its revenue growth, contributing 14.34 billion yuan in 2024 [6][7]. International Business Expansion - The international business strategy has been a long-term effort, with Huatai Securities establishing a comprehensive financial service system across multiple regions, including mainland China, Hong Kong, Europe, the United States, and Singapore [7][8]. - The company has made significant strides in the U.S. and London markets, obtaining various licenses and expanding its service offerings, including FICC business and underwriting for companies entering the U.S. capital market [9]. Wealth Management Services - Wealth management services generated revenue of 16.939 billion yuan in 2024, marking a 7.75% increase from 2023, and are the largest revenue source for Huatai Securities [12]. - The company has leveraged its brokerage strengths to enhance its wealth management capabilities, focusing on personalized investment advisory services and a diversified product offering [12][16]. Technological Integration - Huatai Securities has integrated technology into its operations, enhancing its international business and wealth management services through self-developed platforms and AI capabilities [11][16]. - The company has focused on improving customer service and operational efficiency through AI-driven solutions, including smart investment research and automated client onboarding processes [16].

Investment Rating - The investment rating for Huatai Securities is "Buy" and is maintained [9]. Core Insights - Huatai Securities reported significant performance improvement in 2024, primarily driven by investment gains from the sale of AssetMark. The company's securities brokerage business showed steady performance, with a notable improvement in platform activity. The leading position in asset management is evident, with rapid growth in both the scale and profits of its public fund subsidiary. The market share in equity IPOs has significantly increased, and asset management scale has stabilized. The long-term leading layout in wealth management and financial technology is expected to continue generating positive effects [2][6]. Summary by Sections Financial Performance - In 2024, Huatai Securities achieved operating revenue of 41.47 billion yuan, a year-on-year increase of 13.4%, and a net profit attributable to shareholders of 15.35 billion yuan, up 20.4%. The weighted average return on equity increased by 1.12 percentage points to 9.24% [6]. Business Segments - The company reported that, excluding the gains from AssetMark, the net profit attributable to shareholders was 9.02 billion yuan, a decrease of 29.3%. The revenue from brokerage, investment banking, asset management, interest, and proprietary trading was 6.45 billion, 2.10 billion, 4.15 billion, 2.70 billion, and 7.31 billion yuan, respectively, with year-on-year changes of +8.2%, -31.0%, -2.6%, +184.0%, and -48.7% [6]. Brokerage Business - The brokerage business performed steadily, with a market average daily trading volume of 1.06 trillion yuan, an increase of 21.2% year-on-year. The net income from agency trading and seat leasing rose by 15.5% to 5.48 billion yuan. The monthly active users of the company's securities app, Zhangle Wealth, reached 11.5 million, a year-on-year increase of 22.6% [6]. Asset Management - As of the end of 2024, Huatai Securities held equity and bond fund sizes of 120.2 billion and 166.6 billion yuan, respectively, with year-on-year changes of -10.6% and +4.3%. The company’s subsidiaries, Southern Fund and Huatai Baichuan Fund, had non-monetary management scales of 648.5 billion and 565.7 billion yuan, respectively, with year-on-year growth rates of +32.7% and +98.7% [6]. IPO Market Share - In a tightening equity financing environment, the company’s equity IPO, refinancing, and bond underwriting scales were 85.4 billion, 463.6 billion, and 1,289.6 billion yuan, with year-on-year changes of -50.8%, -37.3%, and +4.6%. The corresponding market shares were 12.9%, 20.8%, and 9.1%, with increases of 8.0 percentage points, 10.8 percentage points, and 0.002 percentage points, respectively [6]. Financial Assets and Investment Returns - By the end of 2024, the company reduced its financial asset scale to 359.8 billion yuan, a decrease of 25.0% year-on-year. The estimated static self-operated investment return rate was 2.9%, down 0.79 percentage points year-on-year [6]. Future Outlook - Huatai Securities is positioned as a pioneer in technology-enabled brokerage, successfully developing leading technology platforms such as "Zhangle Wealth" and "Xingzhi". The leading layout in wealth management and financial technology is expected to continue generating positive effects. The projected net profits attributable to shareholders for 2025 and 2026 are 11.81 billion and 13.40 billion yuan, respectively, corresponding to price-to-book ratios of 0.91 and 0.84 [6].