Shanxi Securities Company Limited

Company Profile

（I）Cultivating Shanxi market to establish regional reputation The Company takes "Cultivate Shanxi, Serve Shanxi" as its own responsibility, closely docked with Shanxi's strategy in energy transformation, industrial upgrading and moderate diversification, builds a comprehensive financial service system for the entire chain and life-cycle, and continues to improve the quality and efficiency for serving Shanxi's economy. During the reporting period, it kept consolidating the dominant position of various businesses in Shanxi, ranking first among securities firms in the province's corporate (enterprise) bond underwriting for the sixth consecutive year, and ranking first among securities firms for the fourth consecutive year in the province's local government bond underwriting, completing all 2 A-share follow-on financing in the province (as per date of listing) and the first NEEQ Market listing through the "Greenlight Passage" of the Shanxi Equity Exchange Center, continuing to coach about 45% of the NEEQ Market enterprises in the province, and using diversified financial consulting business for corporate finance deals, Market Value Management, etc. and provided a package services and solutions. During the reporting period, the Company continued to build an angel fund matrix in the province and accelerate the cultivation of new-quality productivity with the power of long-term capital and patient capital. (II) Centralization to ensure business collaboration and synergy Shanxi Financial Investment Holdings Limited, the controlling shareholder of the Company, is a province-level fully licensed large-scale financial holding group integrating banking, securities, insurance, trust, fund, guarantee, futures, factor market and other financial services. As a core subsidiary of Shanxi Financial Investment Holdings, the Company can efficiently collaborate with sibling companies in related fields, share resources, and provide clients with one-stop financial solutions. The company has built an integrated operation and management system capturing both parent and subsidiaries, strengthened domestic and foreign business collaboration, enhanced the total-control of the parent in terms of capital, internal control, human resources, financial management, etc., improved the professional caliber of subsidiaries, and gave full play to the advantages of the overall platform. (III) Leveraging tech advancement to deepen digital transition The Company adheres to its strategic engine of digital transformation, continues to improve the tech-driven governance structure, and builds a unique self-developed ecosystem. During the reporting period, the Company took "digital intelligence leadership" as the core and accelerated the transformation of its business model in an all-round way. In-depth implementation of the "14th Five-Year Plan" fintech plan to build an "agile, efficient and secure" IT governance model. Through linkage between the global data platform and the AI large model engine, IT resource management is driven into a new stage of integrated collaboration of "software and hardware, cloud, and network research". Focusing on the three core tracks, namely wealth management, FICC and asset management, it realized the digital reshaping of the entire value chain. Through refined client portraits, automated transaction execution and intelligent research/reporting systems, the response speed and operational efficiency of the middle and back office was improved by a large margin, empowering agile business growth. With rich accumulation in fintech, the Company has won the "Financial Technology Development Award" by the People's Bank of China for four consecutive years, and technology is gradually transforming into a core competitive advantage that drives the Company's high-quality development. (IV) Effective risk control to ensure integrated business through vertical and pierce-through management The Company adheres to the philosophy of "integrity, stability, efficiency, standardization and innovation", has a steady style, keeps aware of red-lines and bottom-line, and continues to establish and improve a pierce-through vertical management that integrates internal control system with compliance management, risk management, audit into a holistic function, covering the whole process of all activities of the parent and subsidiary before, during and after the event. During the reporting period, the Company continued to strengthen internal control and compliance management, and the risk control indicators with net capital and liquidity as the core, and continued to meet regulatory requirements. The overall risk was controllable, with no major risk events occurred, and all business operations were stable and orderly, building a solid line of defense for development. (V) CCP team building to nurture a healthy corporate culture The Company always adheres to the Party's leadership throughout the whole process of corporate governance, so that the Party's leadership and enterprise development resonate at the same frequency, and the Party's leadership and corporate culture are integrated and symbiotic. By actively practicing the sector culture of "compliance, integrity, professionalism and stability", the value pursuit of "righteousness to control profit", the work spirit of "cooperation and inclusiveness", and the core driving force of "pursuing excellence", it is forming a high degree of ideological consensus and action consciousness among all cadres and employees, and have become the source of endless momentum for differentiated and high-quality development. The company deeply implements the concept of green development, establishes an ESG management system, and continuously optimizes and improves the ESG management framework. And the Company has been awarded the "2025 Sustainable Development Excellent Practice Cases of Listed Companies" by the China Association of Listed Companies for the fifth consecutive year, and has been awarded the Shenzhen Stock Exchange's China Securities ESG Rating AA and Wind ESG Rating A.