Plutus Financial Group Ltd (NASDAQ: PLUT)

Plutus Financial Group Limited is a holding company incorporated under the laws of the Cayman Islands that provides financial services through its Hong Kong operating subsidiaries, Plutus Securities Limited and Plutus Asset Management Limited. The company offers securities dealing and brokerage services, margin financing, underwriting and placing services, asset management, and investment advisory services to customers in Hong Kong and internationally. Its operations are conducted primarily through licensed entities regulated by the Securities and Futures Commission of Hong Kong.

Plutus Financial Group Limited generates revenue through multiple financial service lines. Plutus Securities Limited earns commissions from securities dealing and brokerage services based on transaction value, handling fees for IPO subscriptions, interest income from margin financing, and underwriting and placing commissions from equity and debt offerings. Plutus Asset Management Limited receives management fees, subscription fees, and performance fees from discretionary accounts and funds under management, as well as investment advisory fees based on asset values. Revenue is recognized on a trade-date basis for brokerage services and at the point in time when underwriting and placing services are rendered.

The company operates through the following segments: Plutus Securities Limited and Plutus Asset Management Limited.

• Plutus Securities Limited provides securities dealing and brokerage services for trading in securities on the Hong Kong stock exchange, offers margin financing services to customers with collateralized loans, and delivers underwriting and placing services for initial public offerings, equity placements, and debt issuances.

• Plutus Asset Management Limited offers asset management services through external discretionary accounts and segregated portfolio funds, including fixed income and mortgage-backed funds and hedge funds, and provides investment advisory services to customers seeking research analysis and investment thesis development.

Plutus Financial Group Limited operates in a competitive financial services industry in Hong Kong, facing competition from larger international banks and financial institutions with greater resources. Its competitive strengths include a wide range of financial services through an integrated platform, a solid and diverse customer base comprising listed companies and high net worth individuals, an experienced management team with over 15 years of industry experience, and effective risk management and internal control systems that have resulted in no disciplinary actions from the Securities and Futures Commission since licensing.

The company serves a diverse customer base that includes listed companies and initial public offering listing applicants in Hong Kong, private companies, high net worth individuals, and retail individuals. As of December 31, 2024, Plutus Securities Limited had 110 retail individual customers, 14 high net worth individuals, and 3 private companies, while Plutus Asset Management Limited had 17 high net worth individuals and 11 private company customers. Specific customer names are not disclosed in the filing.