CISI FIN (06058) 2026 Interim Report Review: Revenue and net profit achieve high double-digit growth, showcasing resilience in adverse conditions.

In the first half of 2026, the global macroeconomic recovery became increasingly divergent, with geopolitical conflicts in the Middle East driving up energy prices and inflationary pressures. The Hong Kong stock market performed relatively poorly compared to other core global markets. The Hang Seng Index decreased by 10.73%, while the Hang Seng Technology Index plummeted by 18.92%. However, on the flip side, trading activity in the Hong Kong stock market rose against the trend, with the IPO market showing signs of recovery. The number of newly listed companies in the first half of the year nearly doubled year-on-year, and fundraising reached a near five-year high for this period. While the environment may be challenging, the coexistence of index adjustments and active trading presents a comprehensive test for the investment capacity, business resilience, and operational level of Chinese brokerage firms operating in Hong Kong. Against this backdrop, CISI FIN (06058) has delivered a substantial semi-annual performance report. It was observed that in the first half of 2026, the company achieved operating revenue of HKD 596 million, an increase of 49.73% year-on-year; its net profit after tax was HKD 138 million, representing a year-on-year growth of 33.83%; and its earnings per share saw a dramatic rise of 142% year-on-year to HKD 0.0344. The company attributed its profit growth primarily to the optimization of its business structure, which yielded significant contributions from core business segments like financial products, investment, and asset management, thereby enhancing both the overall profit scale and quality of the group. Leading investments fuel diversified business growth, navigating through cyclical volatility Looking at CISI FIN's performance in the first half of the year, the most noteworthy aspect is undoubtedly its clear demonstration of how a Chinese brokerage can leverage a firm strategy and differentiated capabilities to seize structural opportunities amidst volatility. In terms of revenue structure, the standout driver of CISI FIN's performance growth is the financial products and investment business. This segment generated revenue of HKD 499 million during the period, a remarkable increase of 122.06% year-on-year, accounting for 83.6% of total revenue, making it the indisputable engine of growth. It is important to note that this accomplishment is particularly significant in a turbulent market. The group maintained a neutral and relatively conservative risk appetite, optimized its holding structure, and conducted global diversified asset allocation, supporting currency and interest rate hedging tools, while increasing its layout of medium- and long-term accounts. The scale of derivatives grew by 18% year-on-year, boosting investment returns through income from fixed-income investments, derivatives trading, and equity asset disposals, allowing it to outperform performance benchmarks in the declining Hong Kong stock market and further solidifying its income sources. Currently, investment capability has evolved from being a "bonus" for brokerages to becoming a "core factor" in determining profit quality. What CISI FIN demonstrates is a profit-generating ability that does not rely on one-sided market trends and is sustainably replicable; this capability to navigate through cycles is also expected to provide a solid foundation for its value reassessment. While the investment business thrives, wealth management, corporate financing, and asset management have each demonstrated their strengths, nurturing differentiated growth poles in various segments. Among them, the wealth management business exhibited strong counter-cyclical resilience, achieving a segment performance of HKD 45.1365 million during the period, remaining a stable source of profit for the group and maintaining its business base despite a weak market trading environment. At the industry level, the expansion of the cross-border wealth management scheme 2.0 and the rectification of illegal cross-border business have presented migrated customer opportunities for compliant licensed institutions. CISI FIN has also actively expanded its cross-border wealth management business, with the scale of new stock subscriptions increasing by over 400% year-on-year, and the cumulative new credit limit for guarantee financing growing by 281% year-on-year, along with a 24% year-on-year increase in institutional clients, while also advancing the development of its "Self-Managed Wealth" advisory product matrix, transitioning from traditional brokerage to asset allocation services and continuously optimizing its client structure. The corporate financing business manifested a structural characteristic of "strong equity, stable debt." The performance in equity underwriting was particularly impressive, ranking fifth among Chinese brokers in Hong Kong by the number of underwritings, facilitating 10 companies to complete equity financing projects, with the number of underwritings increasing by 100% year-on-year and the underwriting amount skyrocketing by 385% year-on-year. Amidst the significant year-on-year increase in fundraising amounts in the Hong Kong IPO market, the company's growth in equity underwriting substantially surpassed the industry average, showcasing its core competitiveness in obtaining and executing high-quality projects. In terms of bond underwriting, the company has continued to strengthen its core client relationships, steadily advancing its project reserves and implementation, ranking eighth among Chinese brokers in Hong Kong by underwriting amount, while maintaining its position as the top bond underwriter for overseas bonds in Fujian Province, reinforcing its regional advantages firmly. Thanks to its outstanding capabilities in green and sustainable financing services, the company won the "2025 Annual ESG Underwriting Institution" award at the DMI annual awards for Chinese offshore bonds, establishing an exceptional brand reputation in the field of green finance. Moreover, the asset management business achieved a milestone, breaking through the HKD 10 billion asset management scale, reflecting steady growth since the end of 2025. CISI FIN has consistently enhanced its product matrix comprising "multi-asset + multi-strategy FOF," with the scale of its core equity productsthe China Core Asset Fundsteadily increasing and yields continuing to outperform the Hang Seng H-Share Index ETF. The performance of its HKD and USD money market funds has also been stable. Simultaneously, global investment-grade bond funds have received conditional approval from the Hong Kong Securities and Futures Commission, achieving coverage of a full range of public offerings and further enriching its product line. Currently, CISI FIN's diversified product system, covering fixed income, Hong Kong IPOs, multi-asset allocation, and FOF strategies, is gradually taking shape, providing clients with one-stop asset allocation solutions and generating new growth curves for the company's high-quality development. Sound finances and a robust risk control system lay a solid growth foundation If revenue and profit represent the "surface" manifestation of performance, then asset quality and risk control capability provide the "internal" support determining the sustainability of CISI FIN's growth. In the first half of 2026, the company actively expanded its asset-liability scale, with total assets rising from HKD 24.6 billion at the end of 2025 to HKD 32.317 billion, an increase of 31.4%. This ample financial strength and continually solidified capital base provide strong support for the expansion of the companys various business lines. At the same time, the companys asset quality has continuously improved, and the risk exposure of its existing assets has been gradually reduced. The company has intensified its layout in medium- and long-term accounts centered on the core goals of "expanding interest spreads and stabilizing interest spreads," broadening multiple income channels, effectively mitigating the impacts of market price fluctuations on current profit and loss, and continuously obtaining excess returns amidst volatility. In terms of liquidity management, the company's cash and bank balances reached HKD 3.4 billion, a 57% increase from the beginning of the year, indicating a significant improvement in cash flow status. The company strictly implements the "three lines of defense" risk management framework, conducting comprehensive and process-wide monitoring of market risk, credit risk, and liquidity risk to ensure that risks remain within measurable, controllable, and bearable limits. This series of data confirms that the company's overall growth is based on cleaner risk exposure and more prudent asset selection, achieving a dynamic balance between expansion and risk control supported by stronger management capabilities to pave the way for subsequent stable growth. Looking ahead to the second half of 2026, the global economy still faces many uncertainties, but amidst these fluctuations, there are also structural opportunities. After undergoing a deep adjustment, the Hong Kong stock market's valuation attractiveness is expected to continue drawing attention from funds, currently standing at a crucial period of "changing circumstances." For CISI FIN, which has completed ability validation and has a clear strategic path, future growth will adhere to the principle of "prudent operation and progress amidst stability," accelerating the transformation of its "Self-Managed Wealth" advisory business, deepening cross-border business layouts, and methodically advancing in the directions of "great wealth, major institutions, and large investment banks": CISI FIN plans to continue seizing business opportunities in cross-border wealth management and mutual recognition of funds between the two regions, construct differentiated cross-border product offerings, leverage research services to drive institutional sales, and expand its professional investor clientele while establishing a prime brokerage service model; using the Min-Hong Technology and Finance Exchange as a core leverage point to create an integrated mechanism for cross-border investment banking, continually solidifying the foundation for international business development. At the same time, CISI FIN will steadfastly uphold compliance and risk management standards, practice the principles of green financial services, optimize resource allocation, accurately grasp historical opportunities to "invest in China" and "Chinese investments," and continue to deepen the group's international business layout, striving to create long-term, sustainable value for shareholders. In response to this, the capital market's reaction has already preceded the financial report: before the earnings release, CISI FINs stock price surged over 10% in a single day, rebounding more than 40% from its low point of the year, and its price-to-book ratio ranked among the top of Chinese brokerages listed in Hong Kong. This indicates that the market's reassessment of the companys value did not start with this interim report, but the report indeed provided the strongest validation for this process. For CISI FIN, the achievements from the first half of the year may just be the prologue: with the systematic upgrade of its investment capabilities, the diversification and balance of its business structure, the rigid adherence to its risk management baseline, and the continued fulfillment of its strategic determination, an elevation of its value center is foreseeable, thus warranting long-term optimism from investors.