Guotai Haitong 2026 Q1 Report Released: Revenue and Net Profit (Excluding Non-Recurring Items) Surge, Subsidiary Merger Accelerates

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The much-anticipated first quarter report of Guotai Haitong Securities was officially released on the evening of April 24.

The performance report shows that in the first quarter of this year, Guotai Haitong achieved operating revenue of 16.232 billion yuan, a year-on-year increase of 58.91%; net profit attributable to equity holders of the parent company after deducting non-recurring gains and losses was 5.711 billion yuan, a year-on-year increase of 73.43%. Total assets steadily climbed to 2.26 trillion yuan. However, the company's net profit attributable to the parent company showed a year-on-year decline due to the high base effect from last year's merger.

An announcement released that same evening also showed that the board of Guotai Haitong approved proposals for the merger of its alternative investment subsidiaries Guojun Zhengyu and Haitong Innovation, as well as the merger of private equity investment subsidiaries Haitong Kaiyuan and Guojun Venture Investment. Previously, two of Guotai Haitong’s asset management subsidiaries and two futures company subsidiaries had initiated mergers in July last year and April 20 this year, respectively. Since the beginning of this year, the pace of subsidiary integration under Guotai Haitong has clearly accelerated.

Core business profitability is on an upward trajectory

Financial data show that in the first quarter of 2026, Guotai Haitong achieved operating revenue of 16.232 billion yuan, a significant increase of 58.91% from 10.215 billion yuan in the same period last year.

During the reporting period, net profit attributable to the owners of the parent company was 6.388 billion yuan, a year-on-year decrease of 47.82%. The quarterly report gives a clear explanation for this apparent decline: it was due to the huge "negative goodwill" generated in last year's absorption and merger of Haitong Securities (first quarter of 2025), which resulted in unusually high non-operating income in the prior year.

Excluding the impact of the above-mentioned non-recurring gains and losses, the net profit attributable to the parent company after deducting non-recurring items—the figure better reflecting the core business performance—reached 5.711 billion yuan, a substantial year-on-year increase of 73.43%. The weighted average return on equity (ROE) after deducting non-recurring items also increased by 0.05 percentage points year-on-year to 1.74%. This indicates that after stripping out accounting effects from the initial merger, Guotai Haitong’s actual profitability and main business remain on an upward path.

Growth rates of different business segments vary

Regarding the performance of specific business segments at Guotai Haitong, the overall trend is growth, but at varying rates.

In brokerage business: Net brokerage fee income in the first quarter reached 4.727 billion yuan, a year-on-year increase of 78.23%. According to the report, this was mainly due to a year-on-year increase in equity trading volume in the first quarter and the expansion of brokerage business scale after the merger with Haitong Securities.

In asset management business: Net asset management fee income reached 176 million yuan, a year-on-year increase of 50.50%, mainly due to effective expansion of group asset and fund management scale following the merger.

In net interest income: Net interest income in the first quarter was 1.76 billion yuan, more than doubling with a year-on-year growth rate of 153.74%, primarily due to growth in finance leasing and margin financing and securities lending business post-merger.

In investment and proprietary business: Despite lower absolute investment gains due to market conditions (down from 7.088 billion yuan to 1.696 billion yuan), gains from fair value changes in derivative financial instruments improved significantly, shifting from a loss of 2.961 billion yuan last year to a gain of 4.485 billion yuan this year, highlighting notable improvement in derivatives investment business.

Two more types of subsidiaries announced to start mergers

Announcements released on the same day show Guotai Haitong is continuing to accelerate subsidiary integration.

Specifically, its alternative investment subsidiary Haitong Innovation will absorb and merge Guojun Zhengyu. After the merger, Haitong Innovation will take over all assets, liabilities, business, personnel, contracts, qualifications, accounts, and other rights and obligations of Guojun Zhengyu. The company will be renamed “Guotai Haitong Zhengyu Investment Co., Ltd.”

Meanwhile, the private equity subsidiary Haitong Kaiyuan will merge and control Guojun Venture Investment, with all shares of Guojun Venture Investment to be transferred free of charge to Haitong Kaiyuan by Guotai Haitong. After the merger, Haitong Kaiyuan will be renamed “Guotai Haitong Kaiyuan Investment Co., Ltd.” Guojun Venture Investment will become a wholly-owned subsidiary of Guotai Haitong Kaiyuan.

The two mergers employ different approaches, showcasing Guotai Haitong’s diversified thinking in integrating subsidiaries.

A Guotai Haitong spokesperson said that the merger of Haitong Innovation and Guojun Zhengyu will not interfere with the independent operation of the portfolio companies, nor will it adversely affect their normal production, business operations, or development. Through the merger, the two alternative investment subsidiaries will integrate investment research capabilities, project resources, and compliance risk control to achieve scale operations and reduce costs, and improve investment returns through professional management, thus building differentiated competitive advantages.

The spokesperson added that the original businesses of Haitong Kaiyuan and Guojun Venture Investment will continue as usual, with all signed contracts, agreements, and legal documents remaining effective and unaffected by the merger. Going forward, Haitong Kaiyuan and Guojun Venture Investment will continue to enhance their professional capabilities, always prioritizing investor interests and continuing to serve the national strategy and create financial returns.

Official announcement of new board secretary

In the series of announcements on the evening of April 24, Guotai Haitong also officially announced the new board secretary. The company’s current board secretary, Nie Xiaogang, resigned from the position due to job arrangements but continues to serve as executive director, vice president, and chief risk officer. At the same time, the board appointed Xu Lan as the new board secretary.

According to the resume, Xu Lan is currently general manager of Guotai Haitong Strategic Clients Department, deputy director of the Integration Work Office, chairman, and general manager of Guotai Junan Zhengyu Investment Co., Ltd. Since joining Guotai Haitong in July 2008, Xu has served as the administrative head of the Financial Industry Department in the Investment Banking Division, administrative head of the Financial and Technology Group in the Investment Banking Division, co-administrative head of the Comprehensive Executive Group–Party Committee Office, administrative head of the Financial Advisory Department, deputy general manager of the Strategic Clients Department, co-general manager of the Investment Banking Division, general manager of the Strategic Clients Department, and vice chairman and general manager of Guotai Junan Zhengyu Investment Co., Ltd.

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