China Industrial Securities International Financial : INTERIM REPORT 2023

興證國際金融集團有限公司

China Industrial Securities International Financial Group Limited

(Incorporated in the Cayman Islands with limited liability) Stock code : 6058

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CREATE THE FUTURE

WITH WISDOM

Interim Report 2023

Contents

Corporate Information	2
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income	3
Condensed Consolidated Statement of Financial Position	4
Condensed Consolidated Statement of Changes in Equity	6
Condensed Consolidated Statement of Cash Flows	7
Notes to the Condensed Consolidated Financial Statements	8
Management Discussion and Analysis	32
Other Information	39

Interim Report 2023

1

Corporate Information

BOARD OF DIRECTORS

Non-executive Director

Mr. Hu Pingsheng (Chairman)

Executive Directors

Mr. Cai Junzheng (Chief Executive Officer)

Ms. Zeng Yanxia (Retired on 10 May 2023)

Ms. Zhang Chunjuan

Independent Non-executive Directors

Ms. Hong Ying

Mr. Tian Li

Mr. Qin Shuo

BOARD COMMITTEES

Audit Committee

Ms. Hong Ying (Chairlady)

Mr. Hu Pingsheng

Mr. Tian Li

Remuneration Committee

Mr. Tian Li (Chairman)

Mr. Hu Pingsheng

Mr. Qin Shuo

Nomination Committee

Mr. Hu Pingsheng (Chairman)

Mr. Tian Li

Mr. Qin Shuo

COMPANY SECRETARY

Ms. Tsang Wing Man

AUTHORISED REPRESENTATIVES

Ms. Zhang Chunjuan

Ms. Tsang Wing Man

AUDITOR

KPMG

Public Interest Entity Auditor registered in accordance with the Financial Reporting Council Ordinance

REGISTERED OFFICE

PO Box 1350

Windward 3, Regatta Office Park

Grand Cayman KY1-1108

Cayman Islands

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

32/F, Infinitus Plaza

199 Des Voeux Road Central

Hong Kong

HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE

Tricor Investor Services Limited

17/F, Far East Finance Centre

16 Harcourt Road

Hong Kong

CAYMAN ISLANDS SHARE REGISTRAR

Tricor Services (Cayman Islands) Limited

Third Floor Century Yard

Cricket Square, P.O. Box 902

Grand Cayman, KY1-1103

Cayman Islands

PRINCIPAL BANKERS

Bank of China (Hong Kong) Limited Industrial Bank Co., Ltd., Hong Kong Branch

The Hongkong and Shanghai Banking Corporation Limited Standard Chartered Bank (Hong Kong) Limited

CMB Wing Lung Bank Limited

Shanghai Pudong Development Bank Co., Ltd., Hong Kong Branch China Everbright Bank Co., Ltd., Hong Kong Branch

Chiyu Banking Corporation Limited

China Minsheng Bank Corp., Ltd., Hong Kong Branch Nanyang Commercial Bank, Limited

China Zheshang Bank Co., Ltd, Hong Kong Branch

WEBSITE

www.xyzq.com.hk

STOCK CODE

6058

2	China Industrial Securities International Financial Group Limited

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

The board of directors (the "Board") of China Industrial Securities International Financial Group Limited (the "Company") announces the unaudited condensed consolidated results of the Company and its subsidiaries (collectively the "Group") for the six months ended 30 June 2023 together with the comparative figures as follows:

		For the six months ended 30 June
		2023	2022
	Notes	HK$	HK$
		Unaudited	Unaudited
Commission and fee income	3	95,510,693	100,560,756
Interest revenue	3	46,076,263	18,595,371
Net trading and investment income	3	109,749,041	(25,960,784)
Total revenue	3	251,335,997	93,195,343
Other income	3	91,378,729	25,168,023
Finance costs		(106,064,274)	(79,161,928)
Commission and fee expenses		(24,627,198)	(19,703,701)
Staff costs	5	(71,318,719)	(80,873,385)
Other operating expenses		(69,496,980)	(78,355,198)
Impairment losses on financial assets	5	1,113,516	(44,720,352)
Other gains or losses	5	2,572,188	(14,452,492)
Profit/(loss) before taxation	5	74,893,259	(198,903,690)
Taxation	6	(12,699,278)	558,267

Profit/(loss) for the period attributable to:

• Holder of ordinary shares of the Company
• Holder of other equity instruments of the Company

62,193,981 (198,345,423)

62,193,981 (198,345,423)

--

Other comprehensive income
Item that will not be reclassified to profit or loss:
- Equity instruments designated at fair value through other comprehensive income
- Changes in fair value	19,735,892	(7,825,451)
Item that may be reclassified subsequently to profit or loss:
- Debt investments at fair value through other comprehensive income
- Changes in fair value	3,184,100	-
Other comprehensive income for the period, net of tax	22,919,992	(7,825,451)

Total comprehensive income for the period attributable to:

• Holder of ordinary shares of the Company
• Holder of other equity instruments of the Company

85,113,973 (206,170,874)

85,113,973 (206,170,874)

--

Earnings/(loss) per share attributable to ordinary equity holders of the Company
Basic (expressed in HK$)	8	0.0155	(0.0496)

The notes on pages 8 to 31 form part of this interim financial report.

Interim Report 2023

3

Condensed Consolidated Statement of Financial Position

		As at	As at
		30 June	31 December
		2023	2022
		HK$	HK$
	Notes	Unaudited	Audited
Non-current assets
Property and equipment		30,916,540	33,462,873
Intangible assets		12,079,043	11,726,329
Financial assets at fair value through profit or loss	9	19,605,897	24,726,511
Debt investments at amortised cost	11	230,725,727	214,953,954
Reverse repurchase agreements		-	92,947,167
Statutory deposits		17,319,232	17,395,812
Deferred tax assets		124,268,672	133,464,944
Deposits, other receivables and prepayments		7,770,246	14,858,045
		442,685,357	543,535,635
Current assets
Accounts receivable	12	1,264,879,172	1,167,456,618
Reverse repurchase agreements		90,314,245	-
Financial assets at fair value through profit or loss	9	4,668,832,046	2,818,655,977
Financial assets at fair value through other comprehensive income	10	3,544,952,684	2,174,690,074
Statutory deposits		13,758,385	16,785,992
Deposits, other receivables and prepayments		87,605,395	169,308,298
Tax receivable		3,361,882	3,707,080
Bank balances - trust accounts		2,813,608,131	2,874,093,301
Bank balances - general accounts and cash		2,068,536,811	2,703,948,516
		14,555,848,751	11,928,645,856
Current liabilities
Accounts payable	14	3,405,733,526	3,150,506,807
Accruals and other payables		28,299,968	32,034,528
Amount due to a fellow subsidiary		2,397,213	1,316,280
Contract liabilities		5,001,476	5,356,160
Tax payable		3,853,172	695,364
Financial liabilities at fair value through profit or loss	13	45,673,629	50,926,422
Repurchase agreements		2,498,514,675	1,958,527,621
Bank borrowings	15	1,752,973,134	1,000,907,152
Bonds	16	2,092,005,538	-
Lease liabilities		8,024,346	16,305,095
Other liabilities		160,035,128	180,720,209
		10,002,511,805	6,397,295,638
Net current assets		4,553,336,946	5,531,350,218

4	China Industrial Securities International Financial Group Limited