The first half of 2026 presented a challenging global macro environment, with uneven recoveries across major economies and rising energy prices and inflationary pressures fueled by geopolitical tensions in the Middle East. Hong Kong's stock market lagged behind its global peers during this period, with the Hang Seng Index declining 10.73% and the Hang Seng Tech Index dropping a sharp 18.92%.

However, the flip side revealed a market with rising trading activity and a recovering IPO landscape, as the number of newly listed companies nearly doubled year-on-year and fundraising volumes hit a five-year high for the period. This unique environment of index corrections alongside robust trading volumes put the investment acumen, operational resilience, and business capabilities of Chinese-funded securities firms in Hong Kong to a comprehensive test. Against this backdrop, CISI FIN (06058) delivered a half-year performance report card of considerable substance.

According to data observed, in the first half of 2026, the company achieved operating revenue of HK$596 million, a year-on-year increase of 49.73%. Profit after tax reached HK$138 million, up 33.83% from the prior year, while earnings per share surged by 142% to HK$0.0344. The company attributed this profit growth to the ongoing optimization of its business structure, with significant contributions from core segments such as financial products, investment, and asset management, which collectively enhanced both the scale and quality of overall profitability.

Investment Business Leads Diversified Growth, Navigating Market Cycles

Examining CISI FIN's first-half performance, the most striking aspect is how it clearly demonstrates the ability of a Chinese-funded brokerage to seize structural opportunities amid volatility through a steadfast strategy and differentiated capabilities. Looking at the revenue structure, the primary driver of growth was the financial products and investment business segment. This division generated revenue of HK$499 million during the period, a substantial 122.06% increase year-on-year, lifting its share of total revenue to 83.6% and cementing its position as the undisputed growth engine.

Notably, this achievement carries extra weight given the turbulent market conditions. The group adhered to a neutral-to-cautious risk appetite, optimized its portfolio structure, and pursued global multi-asset allocation. It paired these efforts with currency and interest rate hedging tools while expanding its medium-to-long-term account positions. Derivatives scale grew by 18% year-on-year, with returns bolstered by fixed-income investments, derivatives trading, and gains from equity asset disposals. This approach enabled investment returns to outperform performance benchmarks even in a declining Hong Kong market, further diversifying and strengthening income sources.

Today, investment capability has evolved from being a 'bonus feature' for brokerages to becoming a 'core scoring metric' that determines profit quality. What CISI FIN has demonstrated is a replicable, sustainable profitability model that does not rely on one-way market trends. This ability to thrive across cycles is expected to lay a solid foundation for the company's value reassessment.

While the investment business surged ahead, wealth management, corporate finance, and asset management operations each leveraged their strengths to cultivate differentiated growth drivers in their respective arenas. The wealth management business displayed remarkable counter-cyclical resilience, recording segment results of HK$45.14 million during the period. It continued to serve as a stable profit source for the group, protecting the core business base even in a weakened market trading environment.

At the industry level, the expansion of the Cross-boundary Wealth Management Connect 2.0 and the crackdown on illegal cross-border operations have created a generational opportunity for client migration toward compliant licensed institutions. CISI FIN has capitalized on this by expanding its Wealth Management Connect presence, with new share subscription volumes increasing by over 400% year-on-year. New credit limits for margin financing grew by 281% cumulatively, and institutional client numbers rose by 24%. The company is also advancing its 'Zhiji Wealth Management' buy-side advisory product matrix, transitioning from traditional transaction-based brokerage toward asset allocation services, thereby continuously refining its client structure.

The corporate finance business exhibited a structural characteristic of 'strong equities, stable bonds.' Equity underwriting was particularly impressive, with the company ranking fifth among Chinese-funded brokerages in Hong Kong by deal count. It facilitated equity financing projects for 10 companies, marking a 100% increase in underwriting deals and a substantial 385% surge in underwriting amounts year-on-year. Amid the significant uptick in Hong Kong IPO fundraising, the company's equity underwriting growth substantially outpaced the industry average, showcasing its core competitiveness in securing and executing quality projects. In bond underwriting, the company continued to deepen relationships with core clients and steadily advanced its project pipeline. It ranked eighth among Chinese-funded brokerages in Hong Kong by underwriting amount and retained the top position in Fujian Province for offshore bond underwriting, cementing its regional advantages. Recognizing its outstanding green and sustainable financing capabilities, the company received the 'ESG Underwriter of the Year' award at the DMI 2025 Chinese Offshore Bond Annual Institution Awards, establishing a distinguished brand reputation in green finance.

The asset management business achieved a milestone by surpassing HK$10 billion in assets under management, growing steadily from the end of 2025. CISI FIN continues to refine its 'multi-asset + multi-strategy FOF' product matrix. The equity-focused core product, the China Core Asset Fund, saw steady growth in scale with returns consistently outperforming the Hang Seng China Enterprises Index, while HKD and USD money market funds delivered stable yields. Additionally, the Global Investment Grade Bond Fund received principle approval from the Hong Kong Securities and Futures Commission, achieving full coverage across public fund categories and further enriching the product lineup. Currently, CISI FIN's diversified product system covering fixed income, Hong Kong IPO investments, multi-asset allocation, and FOF strategies is gradually taking shape. This not only provides clients with one-stop asset allocation solutions but also cultivates new growth trajectories for the company's high-quality development.

Solid Financials and Robust Risk Control Framework Strengthen the Growth Foundation

If revenue and profit represent the 'surface' of performance, then asset quality and risk management capabilities are the 'internal' support determining the sustainability of CISI FIN's growth. In the first half of 2026, the company proactively expanded its balance sheet, with total assets increasing by 31.4% from HK$24.6 billion at the end of 2025 to HK$32.32 billion. This ample capital strength and progressively consolidated capital base provided robust support for the expansion of various business lines.

Meanwhile, asset quality continued to improve, with legacy asset risk exposures steadily shrinking. The company focused on the core objective of 'expanding and stabilizing interest margins' by increasing medium-to-long-term account allocations and broadening diversified income channels. This strategy effectively cushioned the impact of market price fluctuations on current-period earnings while consistently capturing excess returns amid volatility. In terms of liquidity management, cash and bank balances reached HK$3.4 billion, up 57% from the beginning of the year, reflecting a significant improvement in cash flow position.

The company strictly adheres to a 'three lines of defense' risk management architecture, implementing comprehensive, end-to-end monitoring of market, credit, and liquidity risks to ensure all risks remain measurable, controllable, and within acceptable limits. These figures confirm that the company's overall growth is built upon cleaner risk exposures and more prudent asset selection. The dynamic balance between balance sheet expansion and risk control, supported by stronger management capabilities, paves the way for continued steady growth ahead.

Looking toward the second half of 2026, the global economy still faces numerous uncertainties, yet volatility also harbors structural opportunities. After deep corrections, the Hong Kong stock market's valuation attractiveness is expected to continue drawing capital inflows, positioning it at a critical juncture of transformation. For CISI FIN, which has already validated its capabilities and charted a clear strategic path, future growth will adhere to the principles of 'steady operations and progressive advancement.' The company plans to accelerate its 'Zhiji Wealth Management' buy-side advisory transformation, deepen cross-border business initiatives, and deliver on its three strategic pillars of 'Wealth Management, Institutional Business, and Investment Banking.'

Specifically, CISI FIN intends to seize opportunities from the Cross-boundary Wealth Management Connect and mutual fund recognition between the two markets, building a differentiated cross-border product shelf. It will leverage research services to drive institutional sales, expand professional investor clientele, and establish a prime brokerage service model. Using the Fujian-Hong Kong Technology Finance Lounge as a core platform, the company aims to create an integrated cross-border investment banking mechanism and continuously reinforce its international business foundation. Concurrently, CISI FIN will maintain its compliance and risk control bottom line, practice green finance principles, optimize resource allocation, and precisely capture the historical opportunities presented by 'Investing in China' and 'China Investing Globally.' The company remains committed to deepening its parent group's international business layout and creating long-term, sustainable value for shareholders.

The capital market's response has already preceded the financial results: ahead of the earnings release, CISI FIN's share price surged over 10% in a single day, rebounding more than 40% from its yearly low, with its price-to-book ratio ranking among the top of Hong Kong-listed Chinese-funded brokerage stocks. This suggests that the market's reassessment of the company's value did not begin with this interim report, but the report has provided the most compelling validation for this process. For CISI FIN, this half-year performance may only be the opening chapter. With the systematic upgrade of its investment capabilities, the diversification and balance of its business structure, the steadfast adherence to risk control boundaries, and the continued realization of its strategic vision, the elevation of its intrinsic value is now highly anticipated, warranting long-term investor optimism.