Bright Smart Securities & Commodities Group Limited — Earnings Release 2025

Jan 7, 2025

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited (the "Stock Exchange") take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

耀才證券

BRIGHT SMART SECURITIES

香港交易所上市公司（1428）

BRIGHT SMART SECURITIES & COMMODITIES GROUP LIMITED

耀才證券金融集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1428)

PRELIMINARY FINANCIAL DATA FOR THE FIRST NINE MONTHS OF YEAR 2024/25

This announcement is made by Bright Smart Securities & Commodities Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board (the "Board") of directors (the "Directors" and each a "Director") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and its potential investors that based on the preliminary assessment of the latest unaudited consolidated management accounts of the Group for the first nine-month period of year 2024/25 (i.e. from 1 April 2024 to 31 December 2024) (the "Period"), the Group's unaudited consolidated net profit after tax was approximately HK$476 million, representing an increase of approximately 8% as compared to that for the corresponding period last year of approximately HK$442 million. As of 31 December 2024, the total number of our client accounts has reached 579,135.

The investment sentiment in Hong Kong's financial industry has not improved since the epidemic. No matter in terms of the transaction volume or growth rate, it has been much lower than before. The single-day transaction volume once shrank to less than HK$80 billion, lagging behind other important financial countries in the world. The investors have lost confidence and investment appetite in the Hong Kong stock market. The China and Hong Kong stock markets were in the darkest period. In mid-September, a "timely rain" suddenly came to moisten the Hong Kong stock market. First, the U.S. Federal Reserve finally announced a 0.5% interest rate cut on 18 September. Hong Kong banks also followed suit by cutting interest rates, which means that the high interest rate cycle that lasted for more than four years has come to an end for the time being. After the Hong Kong stock market also ushered in the good news of the first interest rate cut, the Hang Seng Index ("HSI") finally exceeded the 18,300-point mark, and transactions began to improve. The single-day transaction volume exceeded approximately HK$150 billion, starting to show some improvement. While investors are still doubtful about whether Hong Kong stocks can turn around, the market has received another great news. On the eve of the 75th National Day, China has successively launched measures to save the weak economy, and this time the market

---

has taken them as rescue measures. It is generally believed that it is different from the past because most measures are aimed at activating the capital market as the primary goal. By improving the liquidity of the capital market, the relinquishing domestic demand problem will be improved. As the market generally believed that this was a targeted measure, the Shanghai Composite Index immediately rose to its highest level over recent years. Hong Kong stocks, which have been relying on the rise of A-shares and waiting for domestic measures to rescue the market, also rebounded. The upward trend has been the strongest since end of May 2022. The HSI once rose above 23,000 points, and transactions hit a new single-day transaction high in Hong Kong's history of HK$620.7 billion. The China stock market and Hong Kong stock market suddenly recovered from the decline of the past three years, and their momentum is unprecedented.

The Group has been rooted in Hong Kong for nearly 30 years. While Hong Kong's economy was in adversity, the Group still adhered to an aggressive business philosophy and continued to invest more resources in publicity strategies with widespread online and offline advertisements. Although the stock markets in many other regions outperformed Hong Kong in terms of the trend and transaction volume in the past, the Group has adopted the business philosophy of "taking what others do not want". At a time when Hong Kong stocks were still in the doldrums, the Group's marketing team has never abandoned the Hong Kong market, and launched a number of products in response to market changes as well as various innovative and timely offers for Hong Kong stock trading (e.g. "New customer reward as high as HK$20,000", "1-month genuine zero commission for trading Hong Kong stock and A-shares and lifetime waiver of platform charge for new clients", "free real-time quotes (LV1) of Hong Kong stocks for all customers", "margin interest rebate up to HK$16,800 for new clients" and "transfer your stocks to Bright Smart to get up to 100 shares of Tencent"); and for futures trading (e.g. "up to US$800 reward for futures trading", "1Divide5 futures account", etc.), as well as for US stocks trading such as "reward of 2 shares of Manchester United Plc (MANU:US)", "commission of only US$0.008 per share for US stock trading" and "a flat interest rate for margin financing as low as 4.78%". As the trading volume of Hong Kong stocks began to drastically improve in mid-September, the performance and the number of customers have shot up accordingly. As the trading volume of Hong Kong stocks hit a record high of HK$620.7 billion, the Group's trading volume marched forward in tandem and also hit a new high.

However, just when investors thought that the trend of the Hong Kong stock market could "catch up with the Japan and the United States markets", the China stock market, which has always had a close relationship with the Hong Kong stock market as "lip and teeth", failed to sustain regardless of the transaction volume or the upward trend, and the Hong Kong stock market also lost its strength, with the HSI once falling back below 20,000 points, and transaction volume shrinking again. According to statistics, approximately 40 securities firms have withdrawn from the Hong Kong market from January to the end of December 2024, and over 90 local securities firms have ceased operations in the past three years. It is expected that the wave of closure of securities firms would remain.

Stepping into 2025, the Group firmly believes that the Hong Kong economy will improve with China's rounds of various rescue measures, and the capital market will also see the dawn, hence the China and Hong Kong stock markets will also benefit. In future, the Group will uphold its business philosophy of "sowing in gloomy days and reaping in bloomy days". All employees will always stick to their posts, continue to be proactive in the market, and never miss any opportunity, striving to strive for maximum returns for our shareholders.

2

---

Information contained in this announcement is only a preliminary assessment made by the Board with reference to the latest unaudited consolidated management accounts of the Group and the information currently available, which has not been reviewed by the auditors and the audit committee of the Company.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board
Bright Smart Securities & Commodities Group Limited
Hui Yik Bun
Executive Director and Chief Executive Officer

Hong Kong, 7 January 2025

As at the date of this announcement, the Board comprises Mr. Yip Mow Lum (Chairman), Mr. Hui Yik Bun (Chief Executive Officer), Mr. Chan Wing Shing, Wilson as Executive Directors; and Mr. Yu Yun Kong, Mr. Szeto Wai Sun, Mr. Ling Kwok Fai, Joseph and Ms. Wong Ting Ting, Priscilla as Independent Non-executive Directors.

3