Financial Street Securities released its 2026 interim report showing total operating income of RMB 1.84 billion for the six months to 30 June 2026, up 10.74% year on year. Net profit attributable to ordinary shareholders edged down 0.45% to RMB 239.65 million, pushing basic earnings per share to RMB 0.0920.

Segment performance was mixed. Brokerage and Wealth Management remained the main engine, with revenue surging 32.88% to RMB 1.26 billion on higher client assets and transaction volumes. Investment Banking revenue fell 17.36% to RMB 76.59 million amid softer deal flow. Proprietary Trading generated RMB 345.43 million, down 27.30% as market divergence reduced gains. Investment Management contributed RMB 138.82 million, a 5.10% increase.

Total assets reached RMB 48.15 billion, up 11.97% from end-2025, while total liabilities grew 14.69% to RMB 39.16 billion. Equity attributable to ordinary shareholders rose 1.57% to RMB 8.73 billion. The gearing ratio climbed to 62.60%, from 60.35% at year-end 2025.

Net capital increased to RMB 7.88 billion, lifting the risk coverage ratio to 226.39%, well above the 100% regulatory minimum. Liquidity coverage ratio stayed solid at 173.79%.

Operating cash inflow fell 53.80% to RMB 180.04 million, while investing activities used RMB 359.94 million. Financing inflow rebounded to RMB 564.26 million, supported by the issuance of RMB 950 million in beneficiary certificates and RMB 2.00 billion in new three-year subordinated bonds.

Key operating metrics improved: client assets under custody reached RMB 250.74 billion (+7.01% YTD), the margin financing and securities lending balance stood at RMB 7.40 billion, and total client accounts grew to 4.27 million. Equity financing underwriting totalled RMB 8.98 billion, placing the firm 45th industry-wide.

The board confirmed a cash dividend of RMB 0.015 per share (RMB 39.07 million in aggregate) for FY 2025, paid on 15 July 2026. No interim dividend was proposed for 1H 2026.

Management highlighted continued focus on digital wealth-management transformation, expansion of ETF and quantitative fund services, strengthening of investment banking regional outreach, and disciplined risk controls. The company plans to further refine its asset securitisation franchise and pursue balanced proprietary investment strategies in the second half.

Pending litigation linked to Hualing Asset Management-related private fund defaults continues; provisions of RMB 65.69 million remain after partial settlements.