A "Mid-Life Securities Firm's" Mid-Year Report: China Merchants Securities Releases its Semi-Annual Report

For a securities firm like China Merchants Securities, which was founded 33 years ago, "middle age" might be an appropriate adjective.

But this "middle-aged" organization, in 2026, "reigned as a young man" and reported a year-on-year growth of 104.87%.

According to China Merchants Securities' 2026 semi-annual report, in the first half of 2026, the company achieved operating revenue of RMB 21.902 billion, a year-on-year increase of 108.19%; net profit attributable to shareholders of the parent company was RMB 10.624 billion, a year-on-year increase of 104.87%, with both revenue and profit more than doubling.

Meanwhile, after deliberation and approval by the company's board of directors, China Merchants Securities also launched its interim profit distribution plan for 2026: a cash dividend of RMB 1.67 (inclusive of tax) per 10 shares to shareholders. After achieving good performance, China Merchants Securities also generously shared dividends with its shareholders.

Best level in the same period in history

Looking at the core financial indicators, in the first half of 2026, the company achieved operating revenue of RMB 21.902 billion, total profit of RMB 13.024 billion, net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses of RMB 10.626 billion, and basic earnings per share of RMB 1.19. All of the above indicators are the best levels in the same period in history.

In addition, the company achieved a weighted average return on net assets of 8.22% in the first half of the year, an increase of 4.04 percentage points year-on-year. As of the end of the reporting period, the company's total assets were RMB 871.408 billion, an increase of 15.65% compared with the end of last year; equity attributable to shareholders of the parent company was RMB 144.785 billion, an increase of 4.91% compared with the end of last year. This reflects that China Merchants Securities did indeed achieve relatively good operating results in the first half of 2026.

Investment and trading business grew by over 300% year-on-year.

Among China Merchants Securities' various businesses, the investment and trading business performed exceptionally well. During the reporting period, this segment achieved operating revenue of RMB 10.891 billion, a year-on-year increase of 325.63%, making it the company's largest source of revenue.

Looking at the specific performance reports, the company achieved investment income of RMB 7.167 billion in the first half of the year, a year-on-year increase of 9.53%; fair value change gains of RMB 6.494 billion, a significant turnaround from a loss of RMB 1.694 billion in the same period last year; and net interest income of RMB 1.54 billion, a year-on-year increase of 144.43%.

Wealth management and institutional business grew by 39.21% year-on-year.

In comparison, the performance of wealth management and institutional businesses was relatively subdued. During the reporting period, China Merchants Securities' wealth management and institutional business segments achieved operating revenue of RMB 8.258 billion, a year-on-year increase of 39.21%. Among them, net brokerage fee income was RMB 5.384 billion, a year-on-year increase of 44.22%.

However, this segment remains the foundation of the company's various businesses. In particular, it includes businesses that directly serve frontline clients, such as brokerage and wealth management, capital intermediation, and comprehensive services for institutional clients, which can be said to support other businesses as well.

In addition, the company's investment management business segment achieved operating revenue of RMB 1.281 billion, a year-on-year increase of 148.65%. The company conducts securities asset management, public fund management and private equity fund management businesses through China Merchants Securities Asset Management and China Merchants Zhiyuan Capital, and holds shares in Bosera Funds and China Merchants Funds.

Investment banking business grew by 50.88% year-on-year.

In investment banking, the segment achieved operating revenue of RMB 608 million during the reporting period, a year-on-year increase of 50.88%. Net fee income from investment banking was RMB 604 million, a year-on-year increase of 50.10%; net fee income from asset management was RMB 405 million, a year-on-year decrease of 7.88%.

In terms of technology and AI, the company attaches great importance to building its financial technology capabilities, focusing on the direction of digital and intelligent development, and actively building an industry-leading "AI securities company". The company is building two major systems centered on customers: "AI + customer service" and "AI + business operations", accelerating the transformation of the China Merchants Securities APP into an "intelligent proactive service" model, and providing digital empowerment tools in multiple scenarios such as investment advisory, investment research, investment, and investment banking.

Overall, by leveraging investment and trading, as well as technology-driven business operations, China Merchants Securities achieved significant growth in both revenue and net profit in the first half of 2026, demonstrating clear growth characteristics of a "middle-aged securities firm".

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