Xingzheng International (06058) 2026 Interim Report View: Net revenue and profit achieved high double-digit growth, showing the true character of contrarian growth
In the first half of 2026, the fragmentation of global macroeconomic recovery intensified, the geographical conflict in the Middle East boosted energy prices and inflationary pressure, and the Hong Kong stock market performed relatively poorly in the global core market. The Hang Seng Index fell 10.73% cumulatively, while the Hang Seng Technology Index fell sharply by 18.92%. However, on the other side of the coin, trading activity in the Hong Kong stock market bucked the trend, and the IPO market ushered in a recovery. The number of newly listed companies nearly doubled year-on-year in the first half of the year, and the scale of fund-raising reached a new high for the same period in the past five years.
The pattern of big water and fish, but surging undercurrents. Index adjustments and active transactions coexist. This is a comprehensive test of the investment capacity, business resilience, and level of business expansion of Chinese brokerage firms in Hong Kong. In this context, Xingzheng International (06058) handed over a semi-annual report card full of gold content.
The Zhitong Finance App observed that in the first half of 2026, the company achieved operating income of HK$596 million, up 49.73% year on year; net profit after tax was HK$138 million, up 33.83% year on year; and profit per share increased sharply by 142% year on year to HK$0.0344. The company said that profit growth was mainly due to the results of optimizing the Group's business structure, and the revenue contribution of core business sectors such as financial products and investment and asset management increased significantly, driving the group's overall profit scale and quality to increase simultaneously.
Investments lead diversified business growth and overcome cyclical fluctuations
Looking at Xingzheng International's performance in the first half of the year, the most interesting point is undoubtedly that it clearly shows how Chinese brokerage firms can seize structural opportunities in the midst of fluctuations with firm strategies and the ability to differentiate themselves.
In terms of revenue structure, the “number one seed” driving the growth of Xingzheng's international performance is the financial products and investment business. The segment achieved revenue of HK$499 million during the period, a significant year-on-year increase of 122.06%, and its share of total revenue jumped to 83.6%, becoming the undisputed main engine of growth.
It is worth noting that in a volatile market, the financial content of this achievement is particularly prominent. The Group adheres to a neutral and prudent risk appetite, optimizes position structures, develops global multi-asset allocation, supports exchange rate and interest rate hedging tools, and increases medium- to long-term account layout. The size of derivatives increased 18% year-on-year. Relying on fixed income investments, derivatives trading, and equity asset disposal proceeds to jointly boost investment returns, achieving investment returns that outperform performance benchmarks in the downturn environment of the Hong Kong stock market, further strengthening revenue sources.
Currently, investment ability has gradually gone from being a “bonus item” for brokerage firms to a “core score” that determines profit success. What Xing Zheng International has shown is a kind of profitability that does not rely on unilateral market conditions and can be replicated sustainably. This ability to cross the cycle is also expected to lay a solid foundation for its value revaluation.
While the investment business is making great strides, businesses such as wealth management, corporate finance, and asset management have shown their strengths, nurturing differentiated growth poles on different tracks.
Among them, the wealth management business showed strong countercyclical resilience, achieving a segment performance of HK$45.1365 million during the period. It is still a stable source of profit for the Group, maintaining the basic business market in an environment where the market trading environment is weak. At the industry level, the expansion of Cross-border Wealth Connect 2.0 and the rectification of illegal cross-border business brought opportunities for the era of customer migration to compliant licensed institutions. Xingzheng International also followed the trend and actively expanded the cross-border Wealth Connect business. The IPO subscription scale increased by more than 400% year over year, the cumulative number of new credit lines for guaranteed financial resources increased 281% year over year, and the number of institutional customers increased 24% year over year. At the same time, the “Take Care of Yourself” buyer investment product matrix was promoted. The transformation from traditional trading brokerage to asset allocation services continued to optimize the customer structure.
The corporate financing business shows the structural characteristics of “strong equity and stable debt”. Equity underwriting performance was particularly impressive. The number of underwriters ranked fifth among Chinese brokerage firms in Hong Kong, helping 10 companies complete equity financing projects. The number of underwriters increased 100% year over year, and the underwriting amount increased sharply by 385% year over year. Amid the wave of sharp year-on-year increases in capital raised in the Hong Kong stock IPO market, the growth rate of the company's equity underwriting significantly exceeded the industry average, demonstrating its core competitiveness in obtaining and executing high-quality projects.
In terms of bond underwriting, the company continues to cultivate core customers and steadily advance project reserves and implementation. The underwriting amount ranks 8th among Chinese brokerage firms in Hong Kong, and ranks 1st in Fujian's overseas debt underwriting ranking. The advantages of deep regional cultivation are unbreakable. With its outstanding green and sustainable financing service capabilities, the company won the “ESG Underwriter of the Year” award in the DMI 2025 Chinese Offshore Debt Annual Institutional Selection, and has established an outstanding brand reputation in the field of green finance.
Meanwhile, the asset management business achieved a landmark leap forward — the scale of asset management surpassed HK$10 billion, a steady increase from the end of 2025. Xingzheng International continues to improve the “multi-asset+multi-strategy FOF” product matrix. The size of China's core asset fund, which is the core equity product, has grown steadily, and the yield continues to outperform the Hang Seng China Enterprise Index. The Hong Kong dollar and US dollar monetary fund earnings are steady. At the same time, global investment-grade bond funds have been approved in principle by the Hong Kong Securities Regulatory Commission, achieving coverage of all categories of public offering products and further enriching the product line. At present, Xingzheng International is gradually forming a diversified product system covering fixed income, Hong Kong stock IPOs, multi-asset allocation and FOF strategies, which not only provides customers with one-stop asset allocation solutions, but also fosters a new growth curve for the company's high-quality development.
Sound finance and improve risk control systems to build a solid foundation for growth
If revenue and profit are the “surface” expression of performance, then asset quality and risk control capabilities are the “internal” support that determines the sustainability of international growth. In the first half of 2026, the company actively expanded its balance and liabilities. Total assets increased from HK$24.6 billion at the end of 2025 to HK$32.317 billion, an increase of 31.4%. Abundant capital strength and a continuously consolidated capital base provided strong support for the expansion of the company's various business lines.
At the same time, the quality of the company's assets continues to improve, and the risk exposure to existing assets continues to shrink. The company increased the medium- to long-term account layout around the core goal of “widening interest spreads and stabilizing interest spreads”, broadened multiple revenue channels, effectively withstood the impact of market price fluctuations on current profit and loss, and continued to obtain excess income in the midst of fluctuations.
In terms of liquidity management, the company's cash and bank balance reached HK$3.4 billion, up 57% from the beginning of the year, and the cash flow situation improved markedly. The company strictly implements the “three lines of defense for risk management” framework, and monitors all categories and processes of market risk, credit risk, and liquidity risk to ensure that risks are within a measurable, controllable and bearable range. This series of data confirms that the company's overall growth is based on cleaner risk exposure and more prudent asset choices, and that table expansion and risk control have achieved a dynamic balance supported by a stronger ability to grasp, which will pave the way for subsequent steady growth.
Looking ahead to the second half of 2026, the global economy is still facing many uncertainties, but there are also structural opportunities in the midst of fluctuations. After undergoing deep adjustments, the Hong Kong stock market's valuation appeal is expected to continue to attract capital attention. Currently, it is in a critical period of “current change.”
For Xingzheng International, which has completed competency verification and a clear strategic path, future growth will adhere to the principle of “steady management, steady progress”, accelerate the transformation of “confidant financial management” buyer investment business, deepen the cross-border business layout, and implement it one by one in the three directions of “big wealth, big institutions, and big investment banks”:
Xingzheng International plans to continue to seize business opportunities such as Cross-border Wealth Management Connect and mutual recognition of funds between the two places, build a differentiated cross-border product shelf, use research services to drive institutional sales, expand the customer base of professional investors, and establish a main broker service model; use the Fujian and Hong Kong Science and Technology Finance Conference Room as the core gripper to create an integrated mechanism for cross-border investment banking and continue to consolidate the foundation for international business development. At the same time, Xingzheng International will continue to adhere to the bottom line of compliance and risk control, implement the concept of green financial services, optimize resource allocation, accurately grasp the historical opportunities of “investing in China” and “investing in China”, continue to deepen the Group's international business layout, and strive to create long-term and sustainable value for shareholders.
The capital market's reaction to this came before the financial report: before the results were released, Xingzheng International's stock price rose by more than 10% in a single day, rebounded more than 40% from its low during the year, and ranked among the highest net market ratios of Chinese brokerage stocks listed in Hong Kong. This means that the market's revaluation of the company's value did not begin with this interim report, but the interim report provided the strongest verification of this process.
As far as Xingzheng International is concerned, the report card for the first half of the year is probably just the beginning: with the system upgrade of its investment capacity, the diversification and balance of its business structure, the rigid adherence to the bottom line of risk control, and the continued implementation of its strategic strength, the rise in its value center can already be expected, and it is worth being optimistic by investors for a long time.