Category: Finance

Betting Big on Content: CMGE Steers Through Industry Waves with Robust Lineup

The success of Black Myth: Wukong, a game steeped in the Chinese cultural aesthetics, is underscoring the vast potential for top-tier IP games from China and igniting confidence for developing high-quality products with global appeal.

At a recent interim results briefing, CMGE (0302.HK) management noted that “The success of games like Black Myth: Wukong, Wuthering Waves, and Zenless Zone Zero has reinforced our commitment to producing cross-platform blockbusters under the strategy of self-development,  proprietary IP operation, and self-publishing.”

As the Chinese game tycoon with the largest IP portfolio, CMGE is doubling down on leveraging major IPs like Legend of Sword and Fairy and One Piece. With a strong focus on technological innovation, CMGE aims to deliver high-quality, long-lifecycle games that redefine the revenue patterns and outlive industry cycle.

Traveling Light: Lean Operations Drive Steady Profits
On August 28, CMGE unveiled its financial results for the first half of 2024, reporting a total revenue of RMB 1.23 billion, including 14.3% from overseas operations, and an adjusted net loss of RMB 208 million.

The first half of 2024 saw severe challenges and volatility across the game industry. In response, CMGE adopted a more prudent financial approach by accounting for impairments on certain investments, write-downs on prepayments for unlaunched games, and adjustments to non-operating financial assets.

Through this adjustment, CMGE expects to “travel light and pave the way for future profitability. It also shows CMGE’s ongoing commitment to developing premium games anchored by strong IPs.

Despite industry turbulence, CMGE’s core operations have remained profitable throughout the first half of 2024, thanks to its sharp focus on an IP-driven strategy that continuously strengthens  player viscosity. Impressive key operational metrics include 14.392 million MAUs, 47.297 million new registrations, and 1.027 million monthly paying users contributing an ARPPU of 200.2 yuan.

By business segment, publishing was a big revenue driver, generating 1 billion yuan in the first half of 2024. Soul Land: Shrek Academy topped the Apple Store’s free games chart within a month of its debut in January, pulling in a monthly revenue of over 100 million yuan. Fights Break Firmament: Peak Confrontation secured the second spot on the chart within a month of its debut in June, setting the stage for further growth in the second half of the year.

CMGE has made remarkable strides in global expansion, raking in 176 million yuan from overseas publishing, a year-on-year increase of 41.5%. A major contributor to this growth was the release of Legend of Sword and Fairy: Wen Qing an RPG card game based on the popular Legend of Sword and Fairy IP. Launched in December 2023 across Hong Kong, Macau, and Taiwan, the game soared to the top of the Apple App Store’s free charts in all three regions, showcasing the lasting popularity of the Legend of Sword and Fairy series among Chinese-speaking players.

On the R&D front, CMGE reported an R&D revenue of 126 million yuan and an R&D investment of 110 million yuan in the first half of the year. Notably, R&D expenses dropped by 58.71% compared to the same period last year, thanks to the integration of AIGC into game development, which raised efficiency and reduced costs. Meanwhile, CMGE’s highly anticipated Sword and Fairy World is already under final test. Reductions in design and development costs inspire a more optimistic outlook on future profitability.

CMGE is intensifying its focus on the Legend of Sword and Fairy IP, strategically extending its influence into film, animation, and merchandise. This multi-faceted approach has consistently unlocked new revenue streams, enhancing the brand’s value and market presence. In the first half of this year, CMGE’s IP licensing revenue surged to 107 million yuan, marking a substantial 79% year-over-year growth. This impressive performance stems from a series of high-profile adaptations of the Legend of Sword and Fairy series, including Sword and Fairy 4, a TV series produced in collaboration with iQiyi; Sword and Fairy, a TV drama based on Sword and Fairy 6 and developed alongside Shandong Film and TV; and The Return of Xiaoyao, a reinterpretation of Legend of Sword and Fairy coproduced with Tencent Video. These adaptations have not only captivated audiences but also garnered critical acclaim, further solidifying the franchise’s stronghold in the market.

Leveraging its premier IP assets, CMGE has maintained steady growth while strategically streamlining its balance sheet through accounting impairments. This positions the company for renewed momentum in the competitive game industry.

All About the Game: Chinese-Inspired Sword and Fairy World Gears Up for Launch
For CMGE, thriving in shifting market cycles isn’t about short-term wins but about building long-term capabilities. The company’s “product-first” philosophy centers on delivering high-quality games based on top-tier IPs, helping it stand out in a crowded market and avoid the pitfalls of low-quality saturation. As CMGE Chairman Xiao Jian recently stated, “IP is more than just a cultural symbol—it’s a value system and almost a belief. In fact, it has become the cornerstone for creating competitive barriers in the game industry.”

A key example of this strategy is Sword and Fairy World, an open-world RPG rooted in the iconic Legend of Sword and Fairy IP. After more than three years of dedicated endeavor, the game has successfully secured licenses for both PC and mobile platforms, showcasing CMGE’s commitment to excellence.

Sword and Fairy World, a game derived from one of China’s most cherished IPs, features a vast and immersive open-world experience. Spanning 384 square kilometers, the game is rich in traditional Chinese cultural elements, allowing players to explore breathtaking landscapes—from the picturesque scenery of Jiangnan to the majestic peaks of Mount Shu and the mysterious miao regions. As Chinese cultural themes gain traction in gaming, insiders suggest that Sword and Fairy World has a chance of becoming a major hit, potentially rivaling titles like Black Myth: Wukong.

CMGE also employs immense efforts in elevating gameplay, doing all out to create a top-tier open-world RPG. On the one hand, it gives the best play to the cultural connotation of its IPs and keeps adding contents. On the other hand, it also invents new ways of gameplay, having introduced a unique pet collection system inspired by Chinese mythology and fantasy to innovate core gameplay. CMGE continues to upgrade visual fidelity and environmental realism to deliver a more immersive interaction and create a comprehensive, next-level player experience that resonates with both domestic and global audiences.

CMGE is setting a new standard for player immersion by integrating AI-driven NPCs into its upcoming games. These NPCs will react to the environment and engage in conversations that mirror real-world interactions, creating a vibrant, lifelike social ecosystem within the game. Players will also have access to advanced AI-powered customization tools, including facial recognition and voice modulation, allowing for more personalized expressions and interactions and sparking players’ creativity in the virtual world.

Building on the success of the renowned Legend of Sword and Fairy IP, Sword and Fairy World has repeatedly ranked among the “Most Anticipated Games” of 2024. Having successfully passed the first three tests, the game is nearing its final test before a full release later this year. The number of pre-registrations is already approaching 5 million and could surpass 10 million by the time of debut.

CMGE’s focus on IP-driven, premium games is paying off handsomely. By capitalizing on the popular Legend of Sword and Fairy IP and potential video and animated adaptations, CMGE is successfully broadening its audience base, enhancing user viscosity and lowering customer acquisition costs. This strategy positions the company for sustained profitability. A cornerstone of CMGE’s approach is its emphasis on open-world games, a growing industry trend that greatly increases user capacity and game lifecycle. Openness and creativity are set to drive higher player engagement and LTV. The eagerly awaited Sword and Fairy World, CMGE’s upcoming open-world title, will be available across multiple platforms, with the PC version projected to achieve a gross margin near 70%.

Industry analysts forecast that the launch of Sword and Fairy World will notably increase the share of long-cycle products in CMGE’s lineup. This not only highlights the lasting value of the Legend of Sword and Fairy IP， but also redefines the traditional profitability trajectory for games, paving the way for sustained, high-revenue growth. With this forward-thinking strategy, CMGE is primed for enhanced profitability and long-term financial success.

Growth on the Horizon: CMGE’s Strong Pipeline Set to Fuel Expansion
CMGE is ramping up its global expansion and refining its product lineup to bolster the stability and predictability of its long-term growth. With an impressive slate of titles set for the second half of 2024, CMGE is gearing up to enhance its performance reliability.

In the second half of 2024, CMGE’s publishing division will make a significant impact with a series of high-profile IP-based game launches. Key upcoming titles include Soul Land: Space and Time Reversal , Daily Life of Chat Group, Naruto: Konoha Masters, New Romance of the Three Kingdoms: The Legend of Cao Cao, Country Love: Business Life , Chunqiu Mystery, and the casual mini-game Sanqian Huanshi. The recent launch of Soul Land: Shrek Academy in Hong Kong, Macau, and Taiwan on August 22, 2024, soared to the top of the Apple App Store’s free charts in all three regions during its debut week. Looking ahead, CMGE is planning to release Smash and Code: FA in Hong Kong, Macau, and Taiwan and bring Dynasty Warriors: Hegemony to the Japanese market in the second half of the year. With these strategic moves, CMGE aims to solidify its position and drive continued growth across key global regions.

CMGE is betting big on its internal development to fuel growth in the second half of the year. Leading the charge are key titles including Sword and Fairy World and World of Castellan , which will benefit from expanded promotional efforts, alongside a new installment in the iconic franchise, Code: Dark Night Legend. These self-developed games are expected to make a substantial impact on the company’s overall performance.

“Strategy is not predicting the future. Instead, it’s about making decisions today to be ready for an uncertain tomorrow,” analysts emphasize, channeling Peter F. Drucker’s wisdom. CMGE exemplifies this with a robust IP-driven, product-first strategy. By honing in on high-quality game development, the company is building a unique competitive moat to secure long-term stability and eventually outlive industry cycle.

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Hong Kong Services Sector Set for Mainland Sustainability Windfall

  • New HKTDC-ACCA research details China trends and local opportunities

A new report has found that 99% of mainland-based businesses have made a commitment towards sustainable investment over the next three years. Hong Kong has emerged as their first choice for sourcing the necessary range of related professional services.

The findings come as part of Seizing Opportunities in China’s Sustainable Investment, a joint research report published today by the Hong Kong Trade Development Council (HKTDC) and the Association of Chartered Certified Accountants (ACCA).

Hong Kong: Key facilitator of sustainable development
The report was compiled after the two organisations surveyed 283 companies on their medium-term sustainability objectives. The research programme, which also included in-depth interviews with key industry representatives, aimed to evaluate the progress made by China-based businesses, as they align themselves with the Central Government’s environmental priorities and explore the possibilities offered by green financing.

Commenting on the significance of the survey, Irina Fan, Director of HKTDC Research, said: ‘As Asia’s leading green finance hub, Hong Kong has the potential to make a significant and lasting impact on Mainland China’s move to an ever more sustainable and environmentally friendly future.’

‘With the city’s own progress to establishing itself as an international green finance and technology centre gathering pace, it is gratifying to see that its success to date is being widely recognised across the mainland. This vote of confidence confirms we are on the right trajectory to work with businesses throughout the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), within China as a whole and along the Belt and Road countries/economies.’

Christina So, Head of ACCA Hong Kong and GBA Lead, said: ‘This study has delivered invaluable insights into the evolution of sustainable business practices in China, making it an essential reference tool for anyone looking to explore business opportunities throughout the country. It also underscores the need for a high standard of competence and a clear understanding of the sustainability agenda among finance and accounting professionals, something that we at ACCA are committed to delivering.’

Healthy sustainable business practices
Another key research finding was that the vast majority of survey participants are prioritising meeting the government’s policy objectives in the environmental impact space, especially with regard to substantially reducing carbon emissions.

Many companies also highlighted other benefits of adopting greener business practices, including enhanced access to green finance and establishing positive brand values on an international basis.

Barriers to sustainable investment
Despite the overwhelmingly upbeat sentiment with regard to adopting and implementing green protocols, many research respondents also reported ongoing challenges. These challenges are often slowing the rate at which agreed measures can be fully actioned. Chief among these concerns are cost pressures – cited by 82% of respondents – with an expectation that any return on investment in enhanced sustainability practices may not be evident in the short term.

While many respondents were enthusiastic about exploring green financing, there was also uncertainty over how best to access these channels. Regardless of this, some 70% of respondents agreed that they were considering using a green financing channel to meet their future needs.

Responding to the challenges facing the mainland business community, Wing Chu, Principal Economist of the HKTDC, said: ‘Despite the cost pressures highlighted, a major proportion of corporations is committed to investing in sustainability practices as a way to generate long-term value.’

‘Interestingly, only a smaller fraction currently perceives the lack of knowledge and talent as challenges. However, they are keen on tapping into green financing to address their future needs. This approach is especially noteworthy, as numerous corporations are set to expand their investment in China and are committed to executing this growth sustainably.’

Opportunities in green financing
The awareness of green financing options in China is still relatively low, with some 47%-56% of respondents indicating a lack of familiarity with many of the available options. Some 71% of respondents, however, maintained that they were willing to make wider use of green financing channels, including green loans and green bonds, while reducing their reliance on traditional financing options.

Detailing how the local professional services sector has evolved to meet these challenges, Sam Chen, Regional Lead, Policy & Insights for ACCA China, said: ‘As businesses increasingly prioritise sustainable practices, understanding the local context and utilising green funding and technology has become crucial. There is now a wider understanding that a comprehensive approach to sustainability is essential, if businesses are to progress towards a more sustainable future, while continuing to deliver in value terms.’

Respondents and interviewees for this research report were drawn from ACCA’s member community in China, which comprises finance professionals across a variety of key sectors, working at the forefront of an ever-changing business landscape.

To further capture the green opportunities along the region, the Government of the Hong Kong Special Administrative Region (HKSAR) and the HKTDC are organising the ninth edition of the Belt and Road Summit, which will be held at the Hong Kong Convention and Exhibition Centre on 11-12 September.

The event will gather green and ESG experts to facilitate knowledge exchange and cooperation on green development and sustainable finance, while showcasing Hong Kong’s green industry capabilities globally. Under the theme of Building a Connected, Innovative and Green Belt and Road, there will be thematic breakout sessions on green development, infrastructure and financing.

Seizing Opportunities in China’s Sustainable Investment (full report):
https://research.hktdc.com/en/article/MTc5MTE4NzAzOQ

Photo download: https://bit.ly/3z7laqv

The HKTDC and the ACCA today jointly released a research report entitled Seizing Opportunities in China’s Sustainable Investment. The press conference was chaired by (from right to left): Wing Chu, Principal Economist of the HKTDC; Irina Fan, Director of HKTDC Research; Christina So, Head of Hong Kong and GBA Lead, ACCA; and Sam Chen, Regional Lead, Policy & Insights – China, ACCA

Media enquiries

Yuan Tung Financial Relations:

Anson WongTel: (852) 3428 3413Email: awong@yuantung.com.hk
Louise SongTel: (852) 3428 5691Email: lsong@yuantung.com.hk

HKTDC’s Communications & Public Affairs Department:

Clayton LauwTel: (852) 2584 4472Email: clayton.y.lauw@hktdc.org
Agnes WatTel: (852) 2584 4554Email: agnes.ky.wat@hktdc.org

ACCA

Jacqueline LamTel: (852) 2973 1106Email: jacqueline.lam@accaglobal.com

HKTDC Media Room: http://mediaroom.hktdc.com

About HKTDC
The Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong’s trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit: www.hktdc.com/aboutus.     

About ACCA
We are ACCA (the Association of Chartered Certified Accountants), a globally recognised professional accountancy body providing qualifications and advancing standards in accountancy worldwide.    

Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 252,500 members and 526,000 future members in 180 countries. 

ACCA now has over 29,000 members and 125,000 future members in China, with representative offices and contact points in 11 cities including Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Shenyang, Qingdao, Wuhan, Changsha, Hong Kong SAR and Macau SAR.

ACCA’s unwavering commitment to building sustainable economies is at the heart of our global vision. Through our policy positions and insights, we strive to inform and influence decision-makers, promote ethical and responsible business practices, and support the transition to a better future.    

Find out more at accaglobal.com/hk or follow ACCA Hong Kong on social media: www.facebook.com/ACCA.HongKong | www.instagram.com/acca_hk | www.linkedin.com/showcase/acca-hong-kong | WeChat ID: ACCA_China

Far East Consortium’s Hotels Division Expands Singapore Portfolio

– with New Joint Venture Acquisition

Dorsett Changi City Singapore

Hong Kong-headquartered and listed Far East Consortium International Limited’s (FEC, Stock Code: 35.HK) hotel operations and management arm, Dorsett Hospitality International (DHI), is pleased to announce its latest strategic investment. DHI has recently entered into a new joint venture, ‘Dorsett Atelier Capital Heeton Changi’, with partners. DHI will lead and add value by leading the remodelling and development of the property, asset management, as well as rebranding the property as ‘Dorsett Changi City Singapore’.

Ms. Winnie Chiu, BBS, JP, Chairperson and Executive Director of DHI as well as Executive Director and Joint Managing Director of FEC said, “FEC and DHI are committed to forming strategic partnerships with like-minded investors to drive growth and create value for stakeholders. DHI is a proven partner with a strong track record for end-to-end hospitality developments, from site acquisition and advisory, property transformation and upgrade, to ongoing business operations.

“This new joint venture marks the beginning of DHI’s new investment strategy, leveraging an asset-light model whereby acting as a minority equity partner and contributing our extensive experience and strong track record not only provides our partners with a more secure alternative for hotel investment, but also enables FEC to use its balance sheet more effectively,” Ms. Chiu added.

“We are not only a hotel management company but also an owner, so interest of the owner is always our priority,” Ms. Chiu said.

Dorsett Changi City Singapore will be DHI’s third property in the city state; 8 other new developments across Hong Kong, Australia and the United Kingdom are on the horizon.

DHI is a global, fully-integrated hotel group with comprehensive expertise across the entire hotel lifecycle, from deal sourcing and design to construction, whether through greenfield, brownfield, or conversion projects, to asset management, including pre-opening, ongoing operations, and maximising yield through to exit.

Its proven track record of creating value is highlighted by the acquisition of a Singapore hotel property in 2019 through a joint venture partnership. The property was subsequently rebranded as Dao by Dorsett Aparthotel in 2022, which led to its GOP doubling in the first year after rebranding, resulting in a 25% increase in valuation.

About Far East Consortium International Limited

Far East Consortium International Limited (“FEC”, together with its subsidiaries, the “Group”) has been listed on the Hong Kong Stock Exchange since 1972 (HKEx Stock Code: 35.HK). The Group is mainly engaged in property development and investment, hotel development and management, car park operations and facilities management, securities and financial product investment. The Group adopts the diversified regional strategy and the “Asian Wallet” strategy with business covering Hong Kong, Mainland China, Australia, New Zealand, Malaysia, Singapore, the United Kingdom and other European countries.

FEC official website: www.fecil.com.hk

About Dorsett Hospitality International
Dorsett Hospitality International is one of the fastest-growing hotel groups in Asia. With 54 properties in 22 major cities across Mainland China, Hong Kong, Australia, the UK, Malaysia,

Singapore, Japan and Europe, we offer a diverse international footprint alongside our strategic partners Palasino Group and AGORA Hospitality Group. Our four core brands – Dorsett Hotels, Dao by Dorsett, d.Collection and Silka Hotels – aim to provide exceptional guest experiences while making positive impacts in our local communities. Additional properties are in the development pipeline.

Dorsett Hospitality International official website: www.dorsett.com

The 18th Frost & Sullivan Growth, Innovation and Leadership Summit, China: A Huge Success

The 18th Frost & Sullivan Growth, Innovation and Leadership Summit and the 3rd New Investment Event (NIE 2024), was held in Shanghai from August 27-30, 2024, co-hosted by LeadLeo. With the theme of “Converging Innovation, Gathering Strength, Shaping a Quality-Driven Future”, NIE 2024 hosted a plenary session and six themed forums bringing together insights from across the industry ecosystem of corporates, academia, research institutes, investors, and media organizations. The aim of the event was to explore growth opportunities , new markets, and drivers of China’s economy in the new era. Frost & Sullivan has hosted its Growth, Innovation and Leadership Summit for over 30 years globally, and 2024 marked the 18th successful year of China hosting the Event.

This year, the summit focused on key trending topics such as New Quality Productive Forces (“New quality productive forces” refers to productivity led by technological innovation that breaks away from the traditional mode of economic growth and development pathway. Adding technological content to productivity, it has the characteristics of high-end technology, high efficiency as well as high quality and quantity), Brand Globalization, Life Sciences, Changing Consumption Patterns, Food & Beverage, ESG, “AI +” and Intelligent Manufacturing, among others. Attended by over 3,000 delegates, the Conference facilitated in-depth discussions leveraging Frost & Sullivan’s insights on various Industries and the global capital markets. It offered optimal growth solutions for enterprises to survive and thrive through transformation.

David Frigstad, Global Chairman of Frost & Sullivan, shared insights on the transformative power of the Intelligence Revolution shaping the global economy. He emphasized that we are living in a time where advancements in technology, particularly in advanced manufacturing, robotics, and artificial intelligence, have the potential to significantly improve productivity and create important new opportunities for businesses worldwide. David believes that Chinese companies, with their expertise in manufacturing and successful integration of cutting-edge technologies, are uniquely positioned to become leading global players. To seize these opportunities, he encourages Chinese companies to build robust ecosystems across the entire value chain, from supply chains to customer engagement, marketing, and technological innovation, and to forge strategic partnerships that will drive success in the evolving global market.

As the world embarks on a path of monumental transformation, deeply impacting various industries, Aroop Zutshi, Global Managing Partner and Executive Board Member of Frost & Sullivan, highlighted the dual nature of these changes – a blend of challenges and nascent growth opportunities, with sustainable development at the core. At the forefront of this global shift, China stands as a leader, propelling global economic growth through its enterprises that are forging world-class products and solutions. He expressed Frost & Sullivan’s earnest desire to witness an increasing number of Chinese companies ascending to prominence globally. He further emphasized that a thriving capital market signifies the proliferation of growth avenues, fostering the realization of this aspiration. Amidst this paradigm shift, Frost & Sullivan remains committed to guiding businesses through the intricate landscape of growth opportunities, leveraging its robust Growth Pipeline Engine and FrostRadar insights. By empowering enterprises with actionable strategies, best practices, and a robust ecosystem, Frost & Sullivan aims to facilitate a seamless transformational growth journey for companies navigating the complexities of today’s dynamic market.

Dr. Neil Wang, Global Partner and Greater China Chairman of Frost & Sullivan highlighted China’s remarkable economic growth over the past 40 years of reform. He emphasized the need for exploring unique development paths to achieve greater breakthroughs, particularly focusing on the cultivation of new quality productive forces, which was a key theme of the conference. Drawing on Frost & Sullivan’s 60+ years’ experience, global data, insights, and extensive analytics on future trends in industries like AI, intelligent manufacturing, and life sciences, Dr. Neil Wang showcased the company’s commitment to predicting and guiding China’s growth opportunities. He also noted Frost & Sullivan’s pivotal role in facilitating the globalization of Chinese enterprises and promoting brand building in line with national strategies. Finally, he reiterated the conference’s dedication to fostering international cooperation and shared growth prospects, marking a successful continuation of Frost & Sullivan’s global summit tradition.

About Frost & Sullivan
The Transformation Growth Journey Company

For over 60 years, Frost & Sullivan has been a global leader for its role in growth advisory. We help corporate leaders, and governments to navigate economic changes and identify disruptive technologies, megatrends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success.

Media Contact
Company Name: Frost & Sullivan
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Address: Room 2504, Wheelock Square, No.1717 West Nanjing Road, Jing’an District, Shanghai
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GF Securities Announces its 2024 Interim Results

– Firmly Focused on the Main Responsibilities and Business
– With Continuous Improvement of Comprehensive Strength and Acceleration of High-quality Development

GF Securities Co., Ltd. (GF Securities or the Company, together with its subsidiaries within the scope of its consolidated financial statements (subsidiaries), the Group; HKSE: 1776; SZSE: 000776) announced its interim results for the six months ended 30 August 2024 (the Reporting Period). During the Reporting Period, under the guidance of the Board of Directors, the management of the Company led all staff to carry out key work to focus on enhancing core business capabilities, cultivating new quality competitiveness, improving comprehensive service capabilities and boosting resource allocation efficiency, as a result of which, the Company’s operating results achieved stable development with a total revenue and other income of RMB17,136  million, and a net profit attributable to owners of the Company of RMB4,362 million. As of 30 June, 2024, the Group’s total asset amounted to RMB689,328 million, representing an increase of 1.05 % as compared to the end of 2023 ; and equity attributable to owners of the Company amounted to RMB140,703 million, representing an increase of 3.67% as compared to the end of 2023.

As one of the first batch of pilot comprehensive management brokerages selected by the CSRC, GF Securities possesses licenses for a full range of services involved in four business segments, including investment banking, wealth management, trading and institution, and investment management. The Group has successively set up futures subsidiaries, public fund subsidiaries, private fund subsidiaries, alternative investment subsidiaries and asset management subsidiaries. With its unique value concept and pragmatic entrepreneurial style, the Company has built up a full-service chain with comprehensive layout and strong strength. In respect  of regional development, the Company based in Guangdong and serves the whole country, connecting domestically and internationally, forges a leading national brokerage with a long-term vision and an open mind. Against this backdrop, the Company has maintained main operating indicators ranking among the top securities companies in China for many consecutive years, and established its leading advantages in various key business segments.

Wealth Management Business Continues to Lead under Ongoing and Deepening Transformation

The Company has taken the lead in proposing wealth management transformation and has currently been equipped with excellent financial product research, sales capabilities and professional asset allocation capabilities. The Company had more than 4,400 securities investment advisors, ranking No. 1 in the industry (in terms of parent company caliber), striving to provide precise wealth management services to different clients.

In the first half of 2024, the Company focused on strengthening the construction of investment research and professional investment & advisory service capabilities, continuing to build a differentiated product and service supply system, and promote the transformation of wealth management business into an investor-oriented buy-side investment advisory business to enhance investors’ sense of gain. In the domestic market, as of the end of June 2024, the total balance of financial products sold by the Company on a commission basis exceeded RMB220 billion, representing an increase of 4.00% as compared to the end of last year while the sales amount of financial products on the Yitaojin E-commerce platform (including Cash Return  and Taojin Market  amounted to RMB116.918 billion. In the overseas market, the Group further diversified its product offerings and continued to transform into wealth management with net sales income and balance of financial products and commissions for multi-market transactions achieving a year-on-year growth. In addition, the market share (in terms of trading volume and trading amount of futures) of GF Futures, the wholly-owned subsidiary of the Group, achieved year-on-year growth. GF Futures (Hong Kong) was awarded the Most Active Chinese Commodity Futures Broker of 2023 by the Singapore Exchange.

At the end of June 2024, the Company had 356 branches and business departments nationwide, with a presence in 31 provinces, municipalities, and autonomous regions across the PRC. The number and coverage ratio of business outlets in the nine cities of the Pearl River Delta in the Guangdong-Hong Kong-Macao Greater Bay Area ranked No. 1 in the industry, providing a wide range of market reach for the Company’s business and laying important support for customer accumulation and service.

Continuous Development of Insitutional Business with Outstanding Research Capabilies Empowerment

The Company actively seizes the opportunities of reform on the investment, financing and trading, gives full play to the role of research in empowering and promoting the Company’s core business, integrates resources to provide comprehensive solutions for institutional customers, improves institutional customer service capabilities and institutional customer service systems, and continues to expand institutional business.

In the first half of 2024, the market-making business of the Company continued to be in the first echelon of the market, providing market-making services for more than 700 funds and all ETF options of the SSE and SZSE, and market-making services for CSI 300 stock index options and CSI 1000 stock index options of the China Financial Futures Exchange. The Company issued 44,559 private equity products through the China Securities Inter-agency Quotation System and OTC market, with a total amount of RMB338.330 billion. The Company became the lead market maker for stock index options of the China Financial Futures Exchange, and was granted the SSE’s 2023 Stock Option Market Development Contribution Award (Outstanding Option Market Maker Award and Contribution to New Option Varieties Award), the SZSE’s 2023 Outstanding ETF Liquidity Provider Award and Outstanding Option Market Maker Award, and the CFFEX’s 2023 Outstanding Stock Index Option Market Maker Award (Bronze Award). As the end of June 2024, the Company provided market-making services to 47 NEEQ enterprises while its bond market-making business created the “GF Securities Pearl River Delta ESG Sustainable Development Local Debt Basket ” to help market institutions actively participate in the green economy construction and sustainable development in the Pearl River Delta through portfolio investment.

At the same time, as a primary dealer of OTC derivatives business with professional advantages in derivatives pricing and trading, the Company continued to strengthen the construction of team and system, enhanced product creation, strategy innovation and trading and sales capabilities, and diversified and expanded its product system, types of underlying products and revenue structure, so as to continuously provide institutional customers with asset allocation and risk management solutions through OTC derivatives.

The Group continued to promote the research-driven business model and gave full play to the empowerment and promotion effect of research on the Company’s core business. As of the end of June 2024, the Group’s equity research covered 28 industries and 993 A-share listed companies in mainland China, and 154 Hong Kong and overseas listed companies. The Company achieved research results based on digital means such as GF research portal and mini programs, continued to explore in the direction of intelligence, and strived to build a multiplatform, multi-channel and multi-dimensional customer service system. During the Reporting Period, the industrial research institute of the Company continued to build an ecosystem of production, learning, research, investment and financial integration, empowered the development of various business segments, provided research support for policy formulation and industrial planning of government departments, and explored the establishment of industrial incubation and transformation cooperation mechanism with key scientific research universities to play a role as a bridge of “technology-finance-industry.

The outstanding research capacity of the Company enjoys a high reputation in the industry and received numerous honors. The Company has received the New Fortune Domestic Best Research Teams and the New Fortune Most Influential Research Institution  for consecutive years from 2017 to 2023, and Top 5 Golden Bull Research Institution  award by China Securities Industry Analyst Golden Bull Award  for consecutive years. Meanwhile, it ranked in the forefront in the selection of Sell-side Analyst Crystal Ball Award , Best Analyst of Shanghai Securities News, the Golden Kirin  Best Analyst of Sina Finance and the Gold Analysts of the 21st Century .

Continuous Improvement of Investment Banking Business with Outstanding Functionalities

Guided by customer demand, the Company has built an investment banking service system with a full business chain throughout the life cycle. During the Reporting Period, the Company actively implemented the national strategies and regulatory policies by adhering to the fundamental purpose of serving the real economy with finance and giving priority to functionality; focused on serving the development of new productive forces and national strategic emerging industries by deeply exploring “specialized, sophisticated, distinctive and innovative” enterprises and effectively fulfilled its responsibility as a “gatekeeper” in the capital market.

In respect of domestic equity financing, as of the end of June 2024, the Company sponsored 43 companies listed on the NEEQ as the lead brokerage, of which 76.74% were “specialized, sophisticated, distinctive and innovative” enterprises. In respect of overseas equity financing, the Company completed two Hong Kong IPO projects including one IPO project as a sponsor with an issue size of HK$1.046 billion, ranking third in the market; completed two refinancing projects with an underwritten amount of HK$4.881 billion; and its equity financing business in Hong Kong ranked third among Chinese-based securities companies in terms of the total issuance size of IPOs and refinancing projects equally distributed among all underwriters, according to the statistics of Dealogic.

In respect of bond and financing business, the Company attached great importance to serving national strategies and facilitated technological innovation enterprises to develop new productive forces; steadily enhanced its market position through leveraging the Group’s synergistic advantages, consistently expanding key regions, strengthening internal assessment mechanism and other measures, on the basis of a strict control of business development risk; and actively practices ESG to promote the green and lowcarbon development through bond and financing business. During the Reporting Period, the Company acted as the lead underwriter for 293 tranches of bonds, representing a year-on-year increase of 70.35%, with a lead underwritten amount of RMB152.428 billion, representing a year-on-year increase of 64.63%; acted as the lead underwriter for 52 tranches of various science and technology innovation bonds with an underwritten amount of RMB19.128 billion; and acted as the lead underwriter for 4 tranches of various low-carbon transformation and green bonds with an underwritten amount of RMB1.088 billion. In respect of Chinese offshore bond business, 33 bonds were issued with an underwritten amount of US$5.617 billion.

In respect of financial advisory business, centered around the guidance of national industrial policies, financial policies and regional development policies, the Company practiced the business model of “One Guangfa” by holding a forum on merger and acquisition of new productive forces and building a merger and acquisition business ecosystem to provide customers with multi-level and all-round comprehensive services, promoting the orderly circulation of assets and capital. During the Reporting Period, the Company completed two projects in major asset restructuring and financial advisory business that had industry and regional influence, involving a total transaction amount of approximately RMB12.851 billion; and completed one overseas equity transaction, involving a transaction amount of approximately HK$1.098 billion. Two transactions in which the Company acted as buyer’s financial advisor were awarded the 2023-2024 Top Ten Domestic M&A Golden Whistle Award.

In the future, GF Securities will continuously commit to its corporate values of “inquisitiveness and integrity” and carry forward its excellent cultural genes of an “army of doctors”, with knowledge as the guarantee and professionalism as the cornerstone, continue to deepen and consolidate the Company ‘s outstanding location advantage  in the Guangdong-Hong Kong-Macao Greater Bay Area and other places, deploy long-term strategies to well develop business with higher standard, accelerate high-quality development and contribute to serving the real economy.

Fosun Pursues Solid Business Development with Predictable Profit

On 28 August 2024, Fosun International (HKG: 0656) announced its 2024 interim results. During the reporting period, its revenue continued to grow, reaching RMB97.84 billion. Industrial operation profit maintained growth, reaching RMB3.47 billion, and profit attributable to owners of the parent was RMB720 million.

Guo Guangchang, Chairman of Fosun International, said at the results presentation on the morning of 29 August, “In the first half of the year, although the macro environment remained challenging, we resolutely executed our strategy of focusing on core businesses, developing industry-leading companies and products in the industries where we have formed advantages. Such strategy has been proven effective in general. Looking ahead, we will remain focus on innovation and globalization, while focusing on asset-light operations, driving long-term development with competitive core strengths.”

Since the beginning of 2024, the domestic economic recovery has been rocky and the international market has remained volatile, which has brought challenges to Chinese companies including Fosun. Fosun steadfastly pushed forward its strategic focus, driving development with core strengths, achieving quality and efficiency improvement in core industries, and maintaining a solid asset base.

Analysts believe that, based on Fosun’s interim results, Fosun’s focus on the core industries in the household consumption sector and its proactive approach to driving innovation and globalization have further reinforced its business foundation, resulting in predictable stable profits. Additionally, over the past two years, Fosun has actively pursued asset-light operations, optimized asset portfolio, and continued to reduce leverage. These efforts have resulted in abundant cash reserves and a stronger financial cushion, which are expected to prompt the market to reassess Fosun’s value.

Staying ahead in globalization and innovation, reinforcing business foundation to develop industry-leading companies and products      

In the first half of the year, Fosun’s four core subsidiaries, namely Fosun Pharma, Yuyuan, Fosun Insurance Portugal, and Fosun Tourism Group (“FTG”), achieved total revenue of RMB72.17 billion, accounting for 74% of the Group’s total revenue. Fosun’s strategy of focusing on core businesses has shown increasing benefits, with its advantages in core industries such as pharmaceuticals, tourism, consumption, and insurance continue to be strengthened.

With years of effort in the aforementioned sectors, Fosun has developed a number of industry-leading companies and products.

For example, in the first half of this year, Fosun Pharma, which ranks second among the top 100 pharmaceutical companies in China, was selected as one of top 20 global pharmaceutical companies in terms of pipeline scale for the third consecutive year. Shanghai Henlius is the first Chinese profitable innovative biopharmaceutical company listed in Hong Kong, with multiple independently developed monoclonal antibody biosimilars that are driving the rapid development of China’s biopharmaceutical industry. Its first blockbuster product, HANLIKANG, is the first domestic biosimilar approved for marketing. Fosun Insurance Portugal holds the largest market share in the Portuguese insurance market and ranks among the leaders in the insurance sector across Portuguese-speaking regions globally. Easun Technology, in the intelligent manufacturing segment, is a global leading automation and digitalization company.

In addition, in the Happiness business segment, Club Med, a subsidiary of FTG, is the global leader that offers exquisite “all-inclusive” holidays. Atlantis Sanya is the leading integrated high-end tourism destination in China, helping to usher Hainan tourism into the 3.0 era. Laomiao Gold, a subsidiary of Yuyuan, is a China time-honored brand and a nationally renowned jewelry brand. These industry-leading companies and products have helped Fosun consolidate its leading position in related sectors.

For Fosun, steady and profitable growth is driven by two factors: innovation and globalization.

Amid the current domestic economic “involution”, “going global” has become a “must-do” for businesses. Fosun, which began its globalization journey as early as 2007, has become one of the benchmark global companies rooted in China. It has also established a profound industrial presence in more than 35 countries and regions worldwide.

During its 17-year globalization journey, Fosun has achieved many successful projects and faced various challenges. Most importantly, this experience has allowed Fosun to develop globalization capabilities that rare among domestic companies. In addition, it has allowed Fosun to connect different markets, industries, and resources globally, achieving global presence, operations and development, while continuously enhancing its global operation capabilities.

This is further illustrated by the following data, the Group’s overseas revenue for the first half of 2024 reached RMB45.87 billion, representing a year-on-year increase of 4%, and accounting for 47% of total revenue. Nearly half of the revenue came from overseas, which is rare among Chinese companies.

More importantly, Fosun has actively driven the empowerment and synergy of its corporate ecosystem in the course of globalization. Its domestic and overseas member companies have made significant progress in global research and development (R&D), business expansion, operations, and investment and financing.

For example, HANQUYOU, independently developed by Fosun’s subsidiary Shanghai Henlius, received marketing approval from the United States (U.S.) Food and Drug Administration (FDA), making it a “Chinese” monoclonal antibody biosimilar approved in China, the European Union (EU), and the U.S. HANLIKANG, China’s first biosimilar, received marketing approval from the Peruvian General Directorate of Medicines, Supplies and Drugs (DIGEMID) in Peru, making it the third self-developed drug of Shanghai Henlius to be approved for overseas marketing after HANQUYOU and HANSIZHUANG.

Moreover, Club Med, a subsidiary of FTG that operates 67 resorts worldwide, achieved a record-high business volume of RMB8.89 billion in the first half of 2024, representing a year-on-year increase of 10.3%. Club Med’s business in the Europe, Middle East and Africa (EMEA) region and the Americas continued to grow, and its business in Asia-Pacific region recovered significantly. In May 2024, Club Med signed an agreement in Oman for the launch of its first resort in the Middle East.

Fosun Insurance Portugal, which began its operations in Portugal, has been actively expanding into overseas markets. In the first half of 2024, it achieved business growth domestically and internationally. The contribution from overseas markets further increased, with international business recording premiums of EUR885 million, accounting for over 30% of the total premiums; the net profit of international business was approximately EUR51 million, accounting for over 40%.

Easun Technology, a global leading automation and digitalization company under Fosun, has also been advancing its overseas expansion. In the first half of 2024, it achieved new overseas orders of RMB3.99 billion, with a significant increase in orders from the U.S. market, reaching RMB750 million, more than doubling year-on-year.

Innovation is also a core competence that Fosun has accumulated over a long period of time and has always adhered to. During the reporting period, Fosun invested a total of RMB3.5 billion to deepen its technological and innovation capabilities. Its integrated innovation model under a global vision has become more mature, resulting in a number of ground-breaking achievements that are steadily generating profits and driving Fosun’s growth.

In terms of innovative drug R&D, Fosun Pharma has 4 products with a total of 9 indications were approved for marketing; 4 products with a total of 9 indications had entered the pre-launch approval stage/key clinical stage; and 9 products (by indication) have been approved to conduct clinical trials. Shanghai Henlius’ independently developed and manufactured innovative biologics continue to make breakthroughs. The world’s first anti-PD-1 monoclonal antibody for the first-line treatment of small cell lung cancer (SCLC), HANSIZHUANG, has been approved for 4 indications, benefiting over 75,000 patients. It has also been out-licensed to over 70 countries and regions, including the U.S., Europe, Southeast Asia, the Middle East, and North Africa. In addition, the new indication for SUKEXIN, a new generation of oral thrombopoietin receptor agonist (TPO-RA), has been approved by the National Medical Products Administration (NMPA).

New progress has also been made in the deployment of cutting-edge medical devices and innovative therapies. In June 2024, Intuitive Fosun Headquarters Industrial Base was inaugurated in Shanghai. It is the largest integrated R&D, production and training base of Intuitive Surgical in the Asia-Pacific region, significantly accelerating the localization of the da Vinci surgical robot. Intuitive Fosun’s Ion robotic bronchoscopy was approved by the NMPA in March this year and was launched in July 2024.

“Asset-light operations” taking shape, poised for revaluation

Benefitting from the strong support in its business operations, Fosun’s financials have also continued to improve. During the reporting period, Fosun continuously optimized its asset portfolio, continuously reduced leverage, and maintained a sound financial position. As of 30 June 2024, the Group’s adjusted total debt-to-capital ratio was 50.2%, maintaining a downward trend since 2020. Adjusted NAV was HK$17.4 per share, indicating that Fosun International’s current share price is significantly undervalued.

Meanwhile, Fosun has actively strengthened its financial cushion and maintained ample cash reserves. As of 30 June 2024, Fosun International’s cash and bank balances and term deposits reached RMB109.55 billion, representing an increase of RMB17.1 billion compared to the end of 2023. In the 17 years since its listing, Fosun has accumulatively paid out HK$25.6 billion in dividends, with the dividend payout ratio gradually increasing to over 20% in the past five years.

In June 2024, the international rating agency S&P fully recognized the effectiveness of Fosun’s financial strategy and affirmed its rating outlook as “stable”.

While achieving stable profits through ongoing innovation and globalization, Fosun has also responded to the new market environment by streamlining its business. It has progressively exited some non-core industries and has actively advanced its asset-light strategy, which is now taking shape.

In May 2024, Fosun sold all of its 99.74% stake in the German private bank HAL, which attracted market attention. After the completion of the transaction, Fosun will no longer hold any shares in HAL, but will retain the HAFS asset servicing business, managing approximately EUR100 billion in assets in an asset-light operation model.

In the tourism sector, Fosun’s asset-light operation model has achieved remarkable results, with IPs such as Club Med, Atlantis Sanya, and Taicang Alps becoming benchmarks in the domestic tourism industry. In the first half of 2024, 85% of Club Med resorts adopted a leasing and management model, with the proportion of self-owned resorts declining to 15%.

In April 2024, the AMAZE Snow Mountain Camp, FTG’s new IP in Lijiang Club Med Resort, quickly became a hit after its opening, driving significant occupancy increases at the nearby Club Med Lijiang Resort and Joy Holiday Hotel Lijiang.

In June 2024, FTG joined hands with the Taicang Municipal Government to build the phase II of Taicang Alps Resort, a one-stop ice and snow-themed urban tourist destination. The phase II project, with a total investment of over RMB5 billion, is funded by the Taicang Municipal Government and operated and managed by FTG. The successful operation of the Alps Snow Live has provided confidence and momentum for the phase II project, which is expected to set several world records in ski resorts.

Fosun has also joined hands with partners to set up a number of industry funds to drive the future of advantageous industries. In March 2024, leveraging its leading advantages in biomedicine, Fosun Pharma joined hands with Shenzhen Guidance Fund and seven other investors to jointly establish a RMB5.0 billion biomedical industry fund, with all proceeds to be invested in biomedical, cells, genes, etc. Shanghai Fujian Equity Investment Fund Management, a subsidiary of Fosun Pharma, was selected through public selection process in Shenzhen to exclusively manage this fund. In April this year, the Shenzhen Municipal Government and Fosun signed a strategic cooperation framework agreement, both parties will further strengthen cooperation in areas such as biomedicine, cultural and sports tourism, and fashionable consumption.

In addition, Fosun Capital, together with Wuhan Innovation Investment and Wuhan Fund, established a RMB3.0 billion industry fund with an initial scale of RMB1.1 billion in April 2024. This is the first batch of market-oriented fund invested by Hubei Province since the establishment of the RMB20.0 billion government guidance fund, mainly focusing on the four major sectors of new generation information technology, dual carbon, intelligent manufacturing, and consumption.

Given the current market environment, it is expected that Fosun will continue to focus on asset-light operations, continuously expand its “circle of friends”, strengthen in-depth cooperation with all parties, and achieve win-win results through complementing each other’s advantages.

Market analysts believe that Fosun has achieved sustained and stable profits leveraging its core strategies of innovation and globalization. In addition, by exiting non-core assets, pursuing asset-light operations, and continuously reducing debt, Fosun has maintained robust financial health, paving the way for a potential market revaluation.

Guo Guangchang believes that in the future, investors will place greater emphasis on the growth of core industries and the stability of cash flow. “One-off asset sales are only short-term solutions. The growth of core businesses is crucial for a company to achieve stable profits.” Fosun aims to build a consumer group centered on core industries, ensuring more predictable business development and profits. At both the group level and within each business unit, Fosun is committed to creating value for its customers and investors that is manageable in terms of risk and promotes steady growth.

Baguio Green Group Announces 2024 Interim Results

– Persistent growth despite external challenges
– Revenue hits historical high for comparable period

Baguio Green Group Limited (Baguio or the Group, HKG: 1397) is pleased to announce its unaudited interim results for the six months ended 30 June 2024 (the Period).

During the Period, the Group’s revenue amounted to approximately HK$1,291.1 million, representing an increase of approximately 16.6% as compared to the same period last year, mainly due to the continued increase in revenue in the cleaning segment together with the waste management and recycling segment. Profit for the Period amounted to approximately HK$25.8 million, representing an increase of approximately 18.5% as compared to the same period last year. The overall gross profit increased by approximately 12.4% to approximately HK$97.1 million.

Business Overview and Prospects
In the first half of 2024, new contracts awarded to the Group amounted to a total of HK$1.48 billion. As a result, the Group’s contracts on hand reached approximately HK$4.60 billion (as of 30 June 2024), representing an increase of approximately 3.8% from approximately HK$4.43 billion as of 31 December 2023, providing strong revenue growth in the second half of 2024 and subsequent years.

The Group’s core business, cleaning services, recorded growth during the Period. Revenue from cleaning services increased by 20.1% to approximately HK$1,034.9 million, accounting for approximately 80.2% of the Group’s total revenue. Gross profit of the cleaning business increased by 7.6% to approximately HK$66.4 million, mainly due to the Group’s new cleaning service contracts with various HKSAR Government (the “Government”) departments and different institutions.

The Group’s Government-related street cleaning services cover a total of seven districts, serving a population of approximately 2.8 million, marking Baguio’s leading position in the Hong Kong cleaning services market. The Group’s Government venue cleaning services for the Food and Environmental Hygiene Department cover seven districts in Hong Kong. In addition, the Group also provided Government market related cleaning services and leisure venues cleaning services, covering several districts in Hong Kong, as well as other cleaning sites such as hospitals, Government clinics, Hong Kong International Airport, schools, housing estates and private institutions, demonstrating that the Group’s professional services are widely recognised.

Waste management and recycling business recorded growth in revenue during the Period which increased by approximately 7.4% to approximately HK$147.3 million, accounting for approximately 11.4% of the Group’s total revenue. Gross profit of the waste management and recycling business increased by approximately 60.7% to approximately HK$19.2 million, mainly due to the “Plastic Recycling Pilot Scheme” entered the harvest period and the related contracts with the Government increased the recycling spots and revenue. During the Period, the Group provided Government-related waste collection services to five districts, serving a population of approximately 1.6 million, and provided collection services for thousands of recycling spots (including plastic, glass bottles, metals, waste paper and food waste) across Hong Kong, and collection services for recycling bins in public places and schools. During the Period, the Group provided Baguio continued to provide plastic collection services for several districts under the Environment Protection Department (“EPD”) Plastic Recycling Pilot Scheme contract. Baguio also provides collection services for Recycling Stations of “GREEN@COMMUNITY”, introduced by the EPD and smart recycling machines, and other institutions in Hong Kong. In addition, the Group also provides the Government with glass bottles collection and management services and food waste collection services in several districts in Hong Kong.

Regarding green technology business, the Group launched a smart recycling system through combination of a number of advanced smart digital technologies and Internet of Things technologies. Through a one-stop management and big data analytics platform, the Group can monitor the real-time situation of the recycling machines, and flexibly deploy transportation according to the amount of recyclables, reducing logistics costs and unnecessary carbon emissions. The Group currently provides smart recycling machines to the EPD and smart food waste recycling machines to private housing estates. At present, smart recycling machines and smart food waste recycling machines are now available in different places of Hong Kong, providing the public with a convenient recycling experience 24 hours a day, and helping to increase the overall recycling volume in Hong Kong. The Government is proactively offering financial aids for private housing estates to install food waste recycling machines through the Recycling Fund and the Environment and Conservation Fund. Under the expected market demand created by the strong advocacy of the Government, it is believed that the Group’s food waste recycling machines and related smart technology business will bring huge business opportunities. With the increasing market demand for smart recycling, the Group plans to seize the opportunity of smart city development, striving to expand the market share of smart recycling machines and smart food waste recycling machines.

In addition, the Government is actively promoting the “Producer Responsibility Scheme on Plastic Beverage Containers and Beverage Cartons”, and plans to table the bill to the Legislative Council for scrutiny this year with a view to introducing it in 2025. Enshrining the principle of “Polluter Pays” and the vision of “Eco-responsibility”, the recycling rate of plastic beverage containers and beverage cartons is expected to have a significant increase. The scheme is expected to directly drive the growth of Baguio’s recycling business and create solid returns from our investment in recycling facilities which creates a strong entry barrier to the competition.

In partnership with Jardine Engineering Corporation Limited, the Pilot Biochar Production Plant at the EcoPark in Tuen Mun was commenced trial operation during the Period. By converting yard waste into high-quality biochar with pyrolysis technology for various applications, the production plant effectively “turns waste into useful resources”.

Hong Kong has made concerted effort to keep pace with international trends in the field of green and sustainable finance, accelerating its progress towards becoming an international green finance hub. To meet the needs of sustainable development, the Group has incorporated sustainability insights into its core businesses and operations and is committed to providing customers with one-stop and diversified green environmental services and sustainable procurement solutions. In the future, Baguio will invest more resources in personnel training and green procurement. Meanwhile, through the provision of waste audit services, the Group provides waste constituent data to help corporate customers understand the amount of generated waste that can be recycled and achieve sustainable development goals.

As for the landscaping business, the Group provided landscaping services for the Kai Tak Sports Park, the Central and Western District Promenade and the Inclusive Park for Pets at Tsun Wen Road in Tuen Mun. In addition, the Group provides landscaping services for a wide range of clients, including large private residences, Government premises, schools, shopping malls, hotels, airports, Hong Kong Science Park, Hong Kong University of Science and Technology and Lingnan University, etc.

For pest management business, the Group continued to provide pest management services in Wong Tai Sin and Tai Po districts during the Period. In addition, the Group provided termite control and monitoring services to 29 monuments under the Antiquities and Monuments Office and 24 temples under the Chinese Temples Committee respectively.

The Government is developing the Northern Metropolis at full speed and a number of public housing estates are scheduled for completion in phases. In particular, intake of tenants at the public housing estates in northern Kwu Tung North and Fanling North New Development Area will commence progressively from 2026. The Northern Metropolis will provide about 500,000 new housing units after fully developed, which is believed to bring opportunities to the Group’s core businesses.

Mr. Ng Wing Hong, Chairman of Baguio, commented, “The Government demonstrates a strong commitment to environmental agenda. Baguio’s core businesses are closely related to the livelihood of the general public and are not affected by the economic environment. Despite the presence of economic headwinds, the Group’s core business continues to demonstrate a growth trajectory.

While the implementation of the Waste Charging was postponed during the Period, the Government has significantly increased its efforts to increase various types of recycling spots through recyclers. For example, the addition of night mobile food waste recycling spots to facilitate citizens’ recycling, with improvement in terms of quality and quantity, which directly brings growth impetus to the Group’s recycling business. Therefore, the postponement of Waste Charging has no adverse impact on the Group’s recycling business, and on the contrary, results in an increase in business. In the long run, waste reduction and recycling will help achieve the Government’s goal of “Zero Landfill”, and benefit the development of the Group’s recycling and green technology businesses.”

Looking forward, the Group will continue to increase the market share of its core businesses and proactively engage in expansion in Hong Kong and beyond. Meanwhile, in line with the development of the Group, it will actively explore potential mergers and acquisitions, joint ventures or new business projects to accelerate future business growth and deliver substantial and long-term returns to shareholders.

For details of the Group’s 2024 interim results announcement, please visit the following website:
http://www.baguio.com.hk/en-US/Investor%20Relations/Announcements%20and%20Notices

– End –

About Baguio Green Group
Established in 1980, Baguio Green Group (HKG: 1397) is one of Hong Kong’s largest integrated environmental services groups. It provides a full spectrum of professional services including professional cleaning, waste collection & recycling, waste management, green technology, organic fertilizer and animal feed production, horticulture & landscaping, and pest control. It serves a wide range of customers in various sectors including Government departments, statutory organizations and multinational corporations. Fully committed to ESG, the Group works relentlessly to advance sustainable development and create a cleaner, greener, healthier city.

Reitar Logtech Holdings Limited (RITR) Successfully Listed on Nasdaq

Reitar Logtech Holdings Limited (Reitar Logtech) (NASDAQ: RITR) has officially listed on the Nasdaq stock market on August 23, 2024. This marks an important milestone in the company’s internationalization, also signifies Reitar Logtech’s commitment to driving the formation of smart logistics ecosystem, injecting new momentum into the industry.

Founded in 2015, Reitar Logtech provides end-to-end logistics solutions by integrating real estate, logistics operations, and innovative technologies through two main segments:

1. Asset management and consulting services – They source and develop logistics properties, enhance asset value through technology, and connect with suitable logistics operators.

2. Construction management and engineering design – They provide project management services for logistics property development.

Reitar Logtech’s one-stop model allows them to deeply understand customer needs, provide tailored solutions, lower operating costs, and optimize overall logistics operations. As a pioneer in the PLT (property + logistics technology) space in Hong Kong with over 20 years of industry expertise and strong relationships with key players.

The company serves both logistics operators (3PLs) and capital partners investing in logistics real estate projects. Reitar Logtech help 3PLs with property procurement, licensing, and strategic planning. The company help capital partners to source, develop, and manage logistics assets to maximize value. Reitar Logtech’s integrated approach and deep industry knowledge are their key competitive advantages in the concentrated Hong Kong logistics services market.

Reitar Logtech raised funds through its initial public offering (IPO) to accelerate product R&D, expand its global business footprint, and continuously optimize service quality. Going forward, Reitar Logtech will strive to consolidate its leadership position in the smart logistics field, partnering with global partners to drive the digital transformation of the supply chain, and lead the smart logistics industry into a new era of development, creating greater value for customers.

Sunshine Insurance Announces 2024 Interim Results

– Operating Results and Value Creation Improved in Stability
– and the Foundation for High-Quality Development Continued to be Consolidated

2024 Interim Results Highlights:
– GWPs increased by 12.8% YoY to RMB76.46 billion;
– Insurance revenue increased by 4.4% to RMB31.49 billion;
– Net profit attributable to equity owners of the parent increased by 8.6% to RMB3.14 billion;
– Embedded value was RMB112.64 billion, up 8.2% from the end of last year on a comparable basis;
– The annualised comprehensive investment yield was 7.2% and the annualised total investment yield was 3.6%;
– As of the end of June 2024, the number of active customers was approximately 30.784 million.

Sunshine Insurance Group Company Limited (Sunshine Insurance or the Company, and its subsidiaries collectively the Group; HKG: 6963) announces the unaudited interim results of the Company and its subsidiaries (the Group) for the six months ended 30 June 2024.

In the first half of 2024, China’s national economy operated in overall stability, achieving progress amid stability. New growth drivers accelerated, and high-quality development gained new strides. The insurance industry, as an important part of the economic system, exhibited a positive development trend, with supply and demand driving the continuous growth of market size. As the only listed traditional insurance company among the 205 mainland insurance companies established in this century, the Group seized the opportunities arising from economic improvement and the increasing demand for insurance. The Group promoted steady growth across various businesses, continuously enhanced its value creation capability and maintained a good development momentum. During the Reporting Period, the gross written premiums of the Group were RMB76.46 billion, representing a year-on-year increase of 12.8%, and the insurance revenue reached RMB31.49 billion, representing a year-on-year increase of 4.4%. The net profit attributable to equity owners of the parent was RMB3.14 billion, representing a year-on-year increase of 8.6%. The embedded value of the Group was RMB112.64 billion, up 8.2% from the end of the previous year. The annualised total investment yield of 3.6% and annualised comprehensive investment yield of 7.2%. As of the end of June 2024, the Group’s active customers were 30.784 million.

The further consolidation of core business realized the leap in its value creation capability

In the first half of 2024, the Group firmly adhered to the path of high-quality development and high-value growth, and continued to promote the “New Sunshine Strategy” with “Technological Sunshine”, “Valuable Sunshine” and “Caring Sunshine” as the core. It created the unique core competitiveness of Sunshine through model innovation. As a result, the operating results achieved steady growth, the value creation capability saw a leap, the core competence of the main business of insurance has been further stabilized and enhanced, and the overall market competitiveness of the Group has been effectively improved.

In terms of life insurance business, Sunshine Life kept pursuing value-oriented development, steadily implemented the strategy of “New Sunshine”, thereby continuously consolidating the advantage of diversified channel development and achieving initial efforts in the transformation and development of sales-force. Meanwhile, Sunshine Life strengthened the linkage between assets and liabilities, while it also upgraded and optimized product and service system. The operation showed a positive momentum of “steady improvement” and “improving quality while maintaining stability”. During the Reporting Period, GWPs reached RMB51.76 billion, a year-on-year increase of 12.9%; the value of new business was RMB3.75 billion, a year-on-year increase of 39.9%; the GWPs from the individual insurance channel amounted to RMB13.69 billion, a year-on-year growth of 25.5%, of which, FYRPs amounted to RMB3.58 billion, a year-on-year growth of 18.5%; In terms of worksite marketing, FYRPs increased by 42.7% year-on-year. The synergistic development of multiple channels has resulted in rapid growth in overall value, a steady recovery in effective manpower and a sustained increase in agent productivity.

In terms of property and casualty insurance business, Sunshine P&C adhered to the development concept of “seeking progress amidst quality”, and solidly pushed forward the implementation of the “New Sunshine” strategy, and continuously consolidated a solid foundation for high-quality development. During the Reporting Period, Sunshine P&C achieved the stable growth of business, continued to optimized its business structure and maintained a good quality. The original premium income (OPI) was RMB24.65 billion, representing a year-on-year increase of 12.4%; the proportion of non-automobile insurance premiums was 46.1%, representing a year-on-year increase of 4.8 percentage points; the proportion of personal vehicle premiums to the automobile insurance was 62.4%, representing a year-on-year increase of 1.5 percentage points. The underwriting combined ratio was 99.1% and the underwriting profit was RMB0.2 billion.

In terms of asset management, the Group upholds the philosophy of long-term value investment, and continuously optimizes the asset-liability management system. By harnessing the full-range investment qualifications and diversified investment capabilities, the Company maintains a clear strategic focus to develop the strategic asset allocation. Furthermore, it keeps enhancing its investment research capacity and carry out tactical asset allocation scientifically and flexibly under the premise of strictly managing investment risks, to create long-term, stable, and sustainable investment performance for insurance funds. During the Reporting Period, the Group’s investment performance remained stable. And achieved total investment income of RMB8.33 billion, reflecting a year-on-year increase of 8.2%, with annualised total investment yield of 3.6% and annualised comprehensive investment yield of 7.2%.

The digital transformation continued to be deepened with customer experience and operational efficiency improved consistently
Technology is a key force in promoting the development of the financial industry and an important source of power for economic development. During the Reporting Period, in order to improve customer experience, improve operational efficiency and management, the Company made great efforts on “artificial intelligence+”, achieved breakthroughs in AI applications in key areas, and continued to deepen its digital transformation.

In terms of sales support, it optimized and upgraded the property and casualty insurance as well as life insurance sales management platform. The property insurance set up a fully online closed-loop process for main non-automobile products from quotes to issuance, improved the digital closed-loop of marketing activities and empowered the per capita productivity improvement and efficiency. The life insurance “Know Your Insurance ” assisted agents in providing customers with coverage planning and product recommendations. In terms of customer service, the Group continuously improved its online customer service platform. The online rate of property insurance value-added service reached 96.3%. The online rate of life insurance preservation services was 96.4%. In terms of management empowerment, the Group built an intelligent risk control system across the Group, improved “non-automobile data mortality table ” system with regard to property and casualty insurance, and improved non-automobile insurance risk pricing capabilities; with regard to the life insurance, the Group created a total of 354 online risk monitoring indicators, which effectively prevented risks.

Furthermore, the Group strengthened the availability of AI data and the construction of the Sunshine Zhengyan big model, which has been further applied in customer service, intelligent claims settlement, smart office and other scenarios. Customer service robots provided customers with services such as policy search, automobile insurance claims reporting, and life insurance follow-ups, achieving a customer satisfaction rate of 90.2% on non-human service. The usage rate of the document classification and visual injury identification functions for smart claims in personal injury assessments within property insurance exceeded 80%, with a document classification accuracy rate of 95.6%. The Sunshine Office GPT has been used a total of 1.02 million times, covering 84% of employees.

The “Caring Sunshine” strategy further advanced and customer-centric mindset has been effectively implemented
“All for customers” is the business value upheld by Sunshine Insurance, and it is also the starting point of creating the “Caring Sunshine” strategy. In order to further promote the “Caring Sunshine” strategy, in the first half of 2024, Sunshine Life continued to promote the “Matrix Plan” with focus on the “three/five/seven ” product system, and to enrich the connotation of the “three/five/seven ” product system, continuously meeting the needs for insurance products in customers’ different life stages. In terms of health protection, the Group launched the exclusive term critical illness insurance for children, the high-end accident medical insurance for children and the maternal and child medical insurance to meet the health protection needs of specific groups of customers’ families and further expand the coverage of customers. In terms of aged care and wealth inheritance, the Group accelerated the layout of participating insurance products to meet customers’ differentiated savings needs. In terms of products supported by national policy, the Group enriched the supply of products such as tax-advantaged health insurance and personal pension, and promoted the policy-oriented commercial insurance to benefit more customers.

Furthermore, Sunshine Life continued to strengthen the construction of “Caring Sunshine” service system. The Group improved the service design capability from the customers’ perspective, and met the core service needs of customers. Meanwhile, in terms of service management, the Group continuously improved the efficiency of customer service, for example, promoting the service mechanism of “listening to customers”, expanded and upgraded the “customer experience officer” team, and continuously improved the capability to provide straight-through services to customers.

Sunshine P&C continues to deepen the research on customer needs, and is committed to establishing a convenient customer service system and practicing the service motto of “making services the reason for customers to choose Sunshine”. In terms of individual customers, the Group continued to deepen the customer-segmented differentiated business management system and continuously provided customers with a richer differentiated product portfolio and personalized service experience to further enhance customer stickiness. In the first half of 2024, the renewal rate of personal vehicle insurance customers was 64.2%, representing continuous year-on-year increase. The proportion of non-automobile insurance products purchased by individual auto insurance customers reached 55.5%, representing a year-on-year increase of 7.6 percentage points. In terms of group customers, the Group continued to promote the implementation of the “Partnership Action” risk management service. In the first half of 2024, the Group provided technology-based loss mitigation and professional risk consulting services to 8,595 corporate customers and upgraded and created a full-scale risk management service model of “insurance + technology + service” to assist customers in improving their capabilities of risk management.

Actively practiced sustainable development and fully supported real economy and green transformation
Actively pursuing sustainable development and earnestly fulfilling social responsibilities are the core values of an enterprise and the key to its long-term development. In the first half of 2024, the Group took an active part in serving national strategies, continuously enhanced its support for the real economy in quality and efficiency, provided a total of RMB50.4 trillion of risk protection for the real economy, and offered more than RMB420 billion of financial support. Particularly, the Group provided risk protection of nearly RMB220 billion to approximately 18,000 micro and small enterprises; the Group offered agriculture risk protection of RMB35.3 billion, paid out claims of RMB150 million and benefited approximately 44,000 rural households; the Group provided risk protection of RMB60.2 billion for 331 “Belt and Road” projects, involving 67 countries in “Belt and Road” construction; the Group provided risk protection of approximately RMB32.6 billion for 406 sci-tech enterprises.

In the meanwhile, the Group was contributing to the green transformation and the realisation of harmonious coexistence, and continued to enrich its green insurance product and service system. In the first half of 2024, the Group provided nearly RMB8 trillion of green insurance protection for 1.22 million enterprises and individuals and offered claims support of approximately RMB2.3 billion. The Group actively responded to climate change to enhance its climate resistance. At the same time, the Group continuously improved its sustainable investment framework and policies. As of the end of June 2024, the balance of sustainable investments nearly reached RMB55 billion, of which green investment exceeded RMB19 billion.

In addition, the Group actively fulfilled its social responsibilities and participated in public the welfare. The Group gave full play to the advantages of the main business of insurance and medical resources, and actively organized and participated in various public the welfare activities in the fields of helping the student and helping the elderly. As of the end of June 2024, Sunshine Insurance built 74 “BoAi” schools in 24 provinces across the country and trained a total of 20,397 rural doctors through the “Plan to Promote Competence of 10,000 Rural Doctors”. The Group sincerely cared for employees and their families, with an accumulated amount of RMB540 million parent-supporting subsidies granted to a total of 44,182 employees.

With its strong comprehensive strength and positive development momentum, on 16 August, Hang Seng Indexes Company announced its latest quarterly review results, and the Group was successfully included in the HSMSI. This change will be implemented after the market close on 6 September, 2024, and will take effect on 9 September, 2024. According to a research report by CICC, Sunshine Insurance Group is expected to be included in the Hong Kong Stock Connect due to its adherence to high standards and outstanding operating performance.

Being included in the HSCI marks a significant milestone. On one hand, it represents market recognition of Sunshine Insurance’s performance and development potential, helping to enhance the Group’s visibility in the capital markets and insurance sector. On the other hand, based on its solid fundamentals, it will attract more investors to increase their allocation to the Group’s stock, thereby improving trading liquidity.

In the second half of 2024, China will further deepen the reform through focusing on promoting a Chinese path to modernization and thoroughly explore domestic demand potential. Therefore, the economy is expected to show a sustained recovery and positive trend. In the long run, the general trend of long-term positive development of China’s economy has not changed, and the insurance industry is ushering in historic opportunities for high-quality development and will play an irreplaceable and important role.

Looking ahead, the Group will adhere to its founding aspiration of “establishing a respected century-old enterprise” and maintain its focus on core business areas. The Group steadfastly promote the “New Sunshine Strategy”, align with national policy directions and industry development trends, and actively make efforts on the five aspects including scientific and technological finance, green finance, inclusive finance, elderly care finance and digital finance. By precisely serving national strategies, supporting the real economy, and ensuring social the well-being, the Group will efficiently leverage its professional insurance advantages. It will continuously enhance Sunshine’s core competitiveness, advance high-quality development, and achieve high-value growth, injecting wisdom and vitality into the creation of a grand blueprint for a strong financial nation and the high-quality development of the financial industry.

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About Sunshine Insurance Group Company Limited
Sunshine Insurance Group Company Limited is a fast-growing private insurance service group in China. Since its establishment, the Group has prioritized value creation as its core business, dedicated to providing clients with professional risk protection and comprehensive service solutions. The Group carries out life and health insurance business through Sunshine Life, property and casualty insurance business through Sunshine P&C, and manages insurance funds through Sunshine AMC. As of 30 June 2024, the Group has been ranked among the top 500 Chinese enterprises by the China Enterprise Confederation for 13 consecutive years, entitled as one of the “Top 500 Valuable Brands in China” by the World Brand Lab for 13 consecutive years, and is also one of the five insurance companies in China that have been recognized as the well-known trademark in China and selected by Brand Finance as one of “Top 100 Most Valuable Insurance Brands”.

BankPozitif’s Chairman Dr. Erkan Kork: Turkiye Will Continue to Attract Qualified Investments

Türkiye received $4.7 billion in international direct investment in the first six months of this year. The Netherlands, the USA, Germany, Ireland, Norway, and the United Kingdom were the countries from which Türkiye received the most investment capital.

BankPozitif’s Chairman, Dr. Erkan Kork

Commenting on the issue, BankPozitif Chairman Dr. Erkan Kork stated that despite the global decline in international direct investments, Türkiye has performed better, saying, “Our country is attracting significant investments from global actors with its entrepreneurial business culture, young population, and competitive products and services. Over the last 20 years, Türkiye has become a country that attracts 1% of the world’s investments annually. The goal is to increase this rate to 1.5% by working even harder. Türkiye is not far from this target with the political stability provided by our President Recep Tayyip Erdogan, the reforms implemented, infrastructure investments, and investor-friendly policies. Under the vision and determined stance of our Minister of Treasury and Finance, Mr. Mehmet Simsek, our country is on the path to becoming a center for international investments.”

“It would be no surprise to hear news of new investments”
Noting that Türkiye would achieve a much different picture with price stability, Kork said, “Türkiye Cumhuriyet Merkez Bankası Governor Fatih Karahan and his team are, so to speak, working tirelessly day and night. The improvement in the current account balance is evident. Recently, with the increase in our reserves and the correct steps taken, the Turkish Lira has reached an attractive position. Achieving price stability opens the door to the process leading to financial stability. In a country where there is financial stability, the appetite for investment is high,” he said.

“Large-scale investments will come in the fintech sector”
Dr. Erkan Kork stated that Türkiye would continue to attract qualified investments, especially those focused on the export of goods and services, saying, “The total value of international direct investment inflows to our country since 2002 has exceeded $268 billion. The investments received in the first six months of 2024 accounted for 28% of the current account deficit. This rate will increase further. Türkiye, which is a production, logistics, and management center for international investors, will continue to attract technology investments, particularly in fintech and e-commerce. I believe that capital inflows will continue not only from Europe and the USA but also from the Gulf countries,” Dr. Kork said.

About BankPozitif
Operating in the field of digital banking, BankPozitif is a Turkey-based financial institution that enables individuals and businesses to carry out their financial transactions quickly and efficiently through a single digital platform. The bank offers digital investment banking with personalized financial solutions and innovative technologies for its customers. 

Source: BankPozitif [https://www.bankpozitif.com.tr]

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