Guotai Junan Securities Co Ltd

CITIC Securities released its 2026 interim report, with first-half revenue reaching 49.692 billion yuan, up 50 percent year on year, and net profit attributable to the parent company of 23.343 billion yuan, up 69.6 percent, temporarily ranking first among brokerages that have disclosed results. Guotai Haitong and CSC Financial ranked second and third, with all three brokerages posting first-half revenue above 10 billion yuan. A total of nine listed brokerages or their parent companies have disclosed interim express reports, and another two have disclosed performance flash reports. Except for Jinlong Shares, all other brokerages that have disclosed results saw both first-half revenue and net profit rise, with net profit attributable to the parent company generally increasing by more than 20 percent. CICC analyst Wang Siyue forecasts that in the first half of this year, 42 listed brokerages will achieve combined net profit attributable to the parent company of 142.5 billion yuan, up 50 percent year on year.

Guotai Haitong released its 2026 interim report, with net profit attributable to the parent company at 20.26 billion yuan, up 28.74% from the same period last year. Total operating revenue was 47.163 billion yuan, up 97.56% year-on-year. Net cash inflow from operating activities was 67.921 billion yuan, up 409.95% year-on-year. The company's latest asset-liability ratio was 84.49%, ROE was 5.43%, and diluted earnings per share was 1.14 yuan.

Guotai Haitong announced plans to distribute a cash dividend of 0.3 yuan per share before tax, with an estimated total payout of 5.254 billion yuan, accounting for 25.93% of net profit attributable to the parent company.

Guotai Haitong released its 2026 semi-annual report, achieving operating revenue of 47.163 billion yuan, up 97.56% year on year, and net profit attributable to owners of the parent of 20.26 billion yuan, up 28.74% year on year. The company plans to distribute a cash dividend of 3.0 yuan per 10 shares, before tax, to A-share and H-share shareholders, with a total proposed cash dividend of 5.254 billion yuan, before tax, accounting for 25.93% of first-half 2026 net profit attributable to the parent. Second-quarter net profit was 13.871 billion yuan, first-quarter net profit was 6.388 billion yuan, and second-quarter net profit rose 117% quarter on quarter.

On the evening of August 18, multiple listed companies on the Shanghai and Shenzhen stock exchanges released important announcements. Shenzhen Sunxing's wholly-owned subsidiary plans to invest in a high-end aluminum-based new materials project, with a planned capacity of 100,000 tons of high-end aluminum-based new materials and a first-phase investment of 400 million yuan to build an annual production line of 20,000 tons for demonstration. Luopu Skin plans to acquire a 51% stake in Mengying Technology to enter the equipment manufacturing sector. Jintian Copper is planning to spin off its controlling subsidiary Ketian Magnetics for listing. Yabang Chemical plans to publicly list and transfer 100% equity and creditor's rights of Daobo Chemical. In terms of performance, GigaDevice's net profit in the first half of the year was 6.857 billion yuan, up 1091.5% year-on-year; Puya Semiconductor's net profit attributable to the parent was 827 million yuan, up 1929.65%; Bluetrum's net profit was 480 million yuan, up 265.77%; Zhuzhou Smelter Group's net profit was 1.948 billion yuan, up 232.75%; Shandong Fiberglass's net profit was 29.2277 million yuan, up 234.89%; Yunhan Core City's net profit grew 207.69% year-on-year; Tunan Co., Ltd.'s net profit grew 167.92%; Tianshan Aluminum's net profit was 4.177 billion yuan, up 100.44%; China Securities's net profit was 7.639 billion yuan, up 69.44%; Haohua Energy's net profit grew 66.14%; Xingtong Co., Ltd.'s net profit grew 57.11%; Hengda New Materials' net profit grew 57.29%; Tianfu Communication's net profit grew 33.92%; Railway Track's net profit grew 32.38%; Guotai Haitong's net profit grew 28.74%; Huiquan Beer's net profit grew 23.26%; Jintian Copper's net profit grew 18.44%; Tibet Summit's net profit grew 18.03%; Focus Media's net profit grew 17.39%; Tebao Bio's net profit grew 11.37%; Jiangsu Financial Leasing's net profit grew 9.27%; Bank of Nanjing's net profit attributable to the parent was 13.65 billion yuan, up 8.17%; Rewei Co., Ltd.'s net profit grew 1.76%. China Unicom's net profit was 4.139 billion yuan, down 34.8% year-on-year; Huaneng Power International's net profit was 6.586 billion yuan, down 28.89%; Fuyao Glass's net profit was 3.97 billion yuan, down 17.37%; Shangtai Technology's net profit was 400 million yuan, down 16.6%; Shede Spirits' net profit was 145 million yuan, down 67.26%; Leyard's net profit was 69.1521 million yuan, down 59.74%; Zhongnan Culture's net profit was 30.587 million yuan, down 49.85%; Sunong Agricultural Development's net profit fell 32.48% year-on-year; H&T's net profit was 240 million yuan, down 32.23%; Guoguang Co., Ltd.'s net profit fell 20.39%; Jiahua Co., Ltd.'s net profit fell 9.03%; Tubao's net profit fell 7.67%; Hangmin Co., Ltd.'s net profit was 300 million yuan, down 4.59%. In terms of shareholding changes, Kangmeite shareholder Suzhou Yixing Tianxia plans to reduce its stake by no more than 1%; Jieya Co., Ltd.'s Mingyuan Fund and its concert parties plan to reduce their combined stake by no more than 4.99%; Espressif Systems' actual controller proposed a share buyback of 100 million to 200 million yuan; Huiyun Titanium obtained special financing support of no more than 22 million yuan for share repurchase. In terms of major contracts, Yakang Co., Ltd.'s subsidiary signed a computing power service procurement contract worth 868 million yuan; Hanhe Cable won a bid of about 717 million yuan for a China Southern Power Grid project; Beijing Creative Distribution Automation won a bid of about 304 million yuan for a China Southern Power Grid project; Dongwei Technology signed a sales contract worth 163 million yuan; PowerChina's newly signed contract value in the first seven months was 640.456 billion yuan, down 13% year-on-year.

Guotai Haitong Securities plans to privatise Guotai Junan International through a scheme of arrangement via its wholly-owned subsidiary Guotai Haitong Financial Holdings Limited, at a cancellation price of HK$3.00 per share, representing a premium of approximately 44.2% over the last closing price of HK$2.08 before suspension. This privatisation is the second Hong Kong-listed brokerage platform under Guotai Haitong to initiate delisting, following Haitong International's withdrawal in 2024, marking a substantive phase in the integration of its overseas businesses. Upon completion, Guotai Junan International will become a wholly-owned subsidiary of Guotai Haitong and delist from the Hong Kong Stock Exchange, with the required cash consideration in the order of tens of billions of Hong Kong dollars. Guotai Junan International reported total revenue of HK$6.23 billion and net profit after tax of HK$1.345 billion for 2025, representing year-on-year growth of 41% and 287% respectively, achieving its best-ever performance. The privatisation aims to resolve business overlap issues arising from the coexistence with Haitong International, enhance management efficiency, and consolidate overseas resources.

Guotai Haitong Securities showcased its latest AI fintech innovations during the 2026 World Artificial Intelligence Conference in Shanghai. The company hosted an AI-themed forum that gathered nearly 1,000 public sector representatives, business leaders and experts, where it unveiled its AI-Ready financial large language model, the Lingxi 3.0 AI investment companion application, and the Vintex enterprise version investment service platform. These AI tools have already been applied in more than 260 scenarios across six categories of institutional users, serving over 400 million investors. The broker also released a report on global AI trends and expressed optimism that quality AI firms could list on China's STAR Market and ChiNext board to access funding for sci-tech innovations.

Guotai Haitong has received approval from the China Securities Regulatory Commission to publicly issue corporate bonds with a total face value of up to 80 billion yuan to professional investors. The approval is a registration-based issuance permit, allowing Guotai Haitong to issue the bonds in tranches within the validity period.

Orient Securities announced that it plans to acquire 100% equity of Shanghai Securities held by Bailian Group, Guotai Haitong, and other counterparties through the issuance of A-shares and cash payment, with a transaction consideration of 25.12 billion yuan. Of this, the share consideration is 23.55 billion yuan and the cash consideration is 1.57 billion yuan. The share issuance price is 10.29 yuan per share, totaling approximately 2.289 billion shares.

On the evening of July 27, multiple listed companies on the Shanghai and Shenzhen exchanges released announcements. Orient Securities plans to acquire 100% equity of Shanghai Securities for 25.12 billion yuan, with share consideration of 23.55 billion yuan and cash consideration of 1.57 billion yuan. Guotai Junan Securities has been approved to publicly issue corporate bonds to professional investors totaling no more than 80 billion yuan. China Energy Engineering Corporation signed new contracts worth 513.188 billion yuan in the first half of the year, down 33.81% year-on-year; PowerChina signed new contracts worth 619.893 billion yuan in the first half, down 9.73% year-on-year. Shenhuo Coal Industry and Power reported first-half net profit of 4.781 billion yuan, up 151.06% year-on-year; Dongfang Precision reported first-half net profit of 3.846 billion yuan, up 867.75% year-on-year, and plans to distribute a cash dividend of 2 yuan per 10 shares. Foxconn Industrial Internet plans to repurchase shares worth 1 billion to 2 billion yuan, and iFlytek plans to repurchase shares worth 100 million to 200 million yuan. A controlled subsidiary of Changxin Bochuang signed a long-term cooperation agreement for the sale of optical fiber and cable worth approximately 4.5 billion yuan. In addition, ST Hengxin has been placed under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws, and a controlled subsidiary of Beingmate has suspended production due to typhoon and rainstorm, with some assets suffering losses.

The China Securities Regulatory Commission has officially issued the 2026 securities company classification evaluation results. Among the 106 participating entities, 53 were rated Category A, 42 Category B, and 11 Category C, with 14 brokerages achieving the AA rating. This year's evaluation marks the second comprehensive assessment under the capital market's '1+N' policy framework. The proportions of Category A, B, and C companies stand at 50%, 40%, and 10% respectively, with the distribution across tiers remaining stable. The evaluation system covers four major areas: risk management capability, ongoing compliance status, business development, and special initiatives. The special indicators focus on functional performance, professional competence, compliance bottom lines, and industry ecosystem. Notably, industry mergers and acquisitions have been included for the first time as a special bonus item, guiding brokerages to become better and stronger through market-oriented means. This echoes the current wave of industry consolidation, such as CICC's share swap merger with Dongxing Securities and Cinda Securities, and the release of integration effects from Guotai Haitong. On the compliance front, full coverage and strict supervision have been further strengthened, with stricter point deductions for employee misconduct. At the same time, indicators such as cultural development and prudent compensation continue to be emphasized, promoting high-quality development in the industry.

Shanxi Securities has received a no-objection letter from the China Securities Regulatory Commission for its 1 billion Hong Kong dollar capital injection into its Hong Kong subsidiary, Shanxi Securities International. It becomes the seventh Chinese brokerage to disclose progress on capital increases for Hong Kong subsidiaries since 2026. Top-tier brokers are investing even more aggressively. CITIC Securities plans to raise 16 billion yuan through an H-share issuance, with all proceeds retained offshore. Guotai Junan and Haitong Securities have announced a 9 billion yuan capital injection into their Hong Kong financial holding platform. Huatai Securities and GF Securities previously injected 9 billion Hong Kong dollars and 6.101 billion Hong Kong dollars respectively into their Hong Kong subsidiaries. Leading institutions are pouring tens of billions of yuan into strengthening their offshore business foundations. Small and medium-sized brokers are also accelerating their efforts. The Hong Kong subsidiary capital increase plans of Soochow Securities and Huaan Securities have received regulatory approval, with amounts of 2 billion Hong Kong dollars and 500 million Hong Kong dollars respectively. China Great Wall Securities’ Hong Kong subsidiary has obtained three types of regulated licenses, and Northeast Securities’ Hong Kong subsidiary has completed registration. Shanxi Securities International, under Shanxi Securities, has established three business lines: FICC, cross-border investment banking, and distinctive asset management. Its net profit surged 239.36 percent year-on-year in 2025, making it a typical case of a small or medium-sized broker successfully building a profitable offshore business model. Data from the Securities Association of China shows that by the end of 2025, 34 mainland brokers had set up 36 overseas subsidiaries, with total assets of offshore platforms reaching 1.94 trillion Hong Kong dollars, up nearly 32 percent year-on-year. Total operating revenue for the full year reached 45.233 billion Hong Kong dollars, up 6.15 percent year-on-year. The contribution from top brokers’ offshore businesses continues to rise. CICC’s overseas revenue accounted for 29.46 percent of its total, CITIC Securities rose to 20.73 percent, and Guotai Junan and Haitong Securities jumped from 6.7 percent to 15.2 percent. A research report from Soochow Securities shows that in 2025, the return on equity of top brokers’ overseas subsidiaries generally exceeded the group’s overall level. CITIC Securities’ overseas subsidiary achieved an ROE of 25.3 percent, CICC’s was 15.9 percent, and Huatai, GF, and Guotai Junan and Haitong Securities were all above 12 percent. A McKinsey report points out that the acceleration of Chinese companies’ globalization, rising demand for global asset allocation from residents and institutions, and structural optimization opportunities in the global pricing of Chinese assets are the core drivers for brokers to increase their overseas presence. The non-bank financial team at Soochow Securities believes that the internationalization of Chinese brokers is still in its early stages, and in the future, overseas business is expected to upgrade from a marginal supplementary segment to a core growth pole. Lu Hao, co-lead analyst for the non-bank financial sector at CITIC Securities, stated that with broader global market boundaries and higher asset return levels, the overseas business will continue to unleash a pulling effect on the overall profitability of brokerage groups. Bo Xiaoxu, non-bank analyst at AVIC Securities, added that developing international business can effectively diversify the risk of single-market volatility and optimize the revenue structure.

Six Chinese financial firms involved in the $8.6 billion initial public offering of China's largest memory chip maker, ChangXin Memory Technologies, are set to earn at least $41 million in fees, according to CXMT's filings. The fee rate is 0.48% of the IPO proceeds, significantly below the average fee rate of 4.52% for IPOs on China's yuan-denominated stock market so far in 2026. If CXMT raises $8.6 billion, it would be the largest IPO on China's yuan-denominated stock market, surpassing Semiconductor Manufacturing International Corporation's listing in 2020. The IPO is being led by China Securities and CICC, with other participants including China Merchants Securities, Guotai HaiTong Securities, Guoyuan Securities, and Huatai United Securities, a subsidiary of Huatai Securities.

As of July 15, 21 listed brokers have released their 2026 first-half performance forecasts, with 20 reporting positive results. CITIC Securities expects its net profit attributable to shareholders of the parent company to be at least approximately 23.343 billion yuan, continuing to lead listed brokers. Guotai Haitong follows closely, with an estimated net profit of 20.003 billion to 20.511 billion yuan. Huatai Securities, GF Securities, and China Merchants Securities all anticipate net profit floors exceeding 10 billion yuan, at approximately 11.324 billion, 11 billion, and 10 billion yuan respectively. In terms of growth, Tianfeng Securities expects its net profit to increase by 429.03 percent year-on-year, ranking first among brokers that have disclosed forecasts. Additionally, Xiangcai Co., Ltd., Huachuang Yunxin, Zhongtai Securities, and Huaan Securities expect their net profits to double year-on-year. The industry as a whole is improving, with A-share trading volume in the first half of 2026 rising 95 percent year-on-year, and revenue from brokerage, proprietary trading, and other businesses expected to grow significantly.

Guotai Haitong released its semi-annual earnings preview, expecting first-half core net profit attributable to the parent of nearly 20 billion yuan, a year-on-year increase of about 1.7 times. Second-quarter core net profit alone is about 14 billion yuan, up roughly 2.5 times year-on-year, with quarterly ROE hitting a ten-year high. At the industry level, the non-bank sector's second-quarter earnings growth is highly certain, with brokerages and insurers expected to continue strong profit gains. As of July 3, the Securities Companies Index traded at about 1.4 times book, near the 31st percentile of the past decade, while the CSI 300 Non-Bank Index traded at about 1.2 times book, near the 11th percentile, diverging from actual fundamentals and presenting a valuation repair opportunity during the interim reporting season. In the second half, high-profile hard-tech IPOs will list in clusters, benefiting brokerages across the entire chain of sponsorship, co-investment, and direct investment. Top brokerages' ROE could trend toward 15 percent, opening up medium- to long-term valuation re-rating potential. Among related products, the E Fund Securities ETF has a latest size of about 4.4 billion yuan, the E Fund Hong Kong Securities ETF is the only ETF in the market tracking the Hong Kong Securities Index with a latest size of about 19.7 billion yuan, and the E Fund Securities and Insurance ETF has a latest size of about 14.5 billion yuan.

Guotai Haitong has taken the lead in disclosing its 2026 half-year performance forecast, estimating net profit attributable to parent company shareholders for the first half at 20.003 billion yuan to 20.511 billion yuan, a year-on-year increase of 27% to 30%. Net profit after deducting non-recurring items is projected at 19.249 billion yuan to 19.757 billion yuan, surging 164% to 171% year-on-year, setting a new record high for the company's half-year performance. For the second quarter alone, net profit attributable to parent is expected to be 13.615 billion yuan to 14.123 billion yuan, skyrocketing 290% to 304% year-on-year, and up 113% to 121% from the first quarter's 6.388 billion yuan. Deducted net profit is forecast at 13.538 billion yuan to 14.046 billion yuan, up 240% to 252% year-on-year, and a sharp increase of 137% to 146% quarter-on-quarter. The second quarter's deducted net profit already accounts for over 70% of the total first-half deducted profit. The strong performance is mainly driven by the release of post-merger synergies, with significant year-on-year growth in revenue from wealth management, investment banking, institutional and trading services, and investment management. Notably, the investment banking division led the industry with 13 IPO sponsorship mandates.

On the evening of July 3, several listed companies on the Shanghai and Shenzhen stock exchanges released significant positive announcements. Pengding Holding plans to raise no more than 9.6 billion yuan through a private placement for AI server and high-speed optical module high-density interconnect laminate projects. JPT plans to acquire all equity of NEOPTICS PTE. LTD. for 1.12 million Singapore dollars; the target company is engaged in the research, development, production, and sales of optical devices. Shenhao Technology and its subsidiaries plan to purchase servers from multiple suppliers, with the total contract amount expected not to exceed 2 billion yuan, to provide computing power leasing services to customers. Taihe Technology stated it is concentrating on advancing electronic chemical projects such as photoresist resins and high-purity solvents. Longsys expects a net profit of 9.2 billion to 11 billion yuan in the first half of 2026, a year-on-year increase of 62,204% to 74,394%, mainly benefiting from the storage industry boom, renewal of wafer supply agreements, and innovation in on-device AI storage technology. Huafu Fashion expects a net profit of 160 million to 200 million yuan in the first half of the year, a year-on-year increase of 537.51% to 696.88%, mainly due to rising cotton prices and increased investment income. Guotai Junan Securities released its first half-year performance forecast for brokerages, expecting a net profit attributable to the parent company of 20.003 billion to 20.511 billion yuan in the first half of the year, a year-on-year increase of 164% to 171%, setting a new record high for half-year performance. Dongyue Silicone expects a net profit of 424 million to 444 million yuan in the first half of the year, a year-on-year increase of 904.88% to 952.28%, benefiting from rising prices of silicone products and declining raw material costs. Hangzhou Cable expects a net profit of approximately 360 million to 400 million yuan in the first half of the year, a year-on-year increase of 852.03% to 957.82%, with both volume and price increases in demand for optical fiber products. A controlled subsidiary of Digital China won the bid for a Huawei intelligent computing server procurement project of a large state-owned commercial bank, with an estimated amount of 371 million yuan, supplying Digital China KunTai supernode servers.