Orient Securities and Shanghai Securities Merger Approved by Shareholders for RMB 25.12 Billion

On August 24, 2026, Orient Securities Co. , Ltd. held its second extraordinary shareholders' meeting and the first A-share and H-share class meetings of 2026. According to the resolutions announcement released that evening, the merger and restructuring transaction plan between Orient Securities and Shanghai Securities, along with a series of related proposals, were all approved with high votes, with all resolutions passing with over 99% support. Related shareholders abstained from voting on the transaction-related proposals as required, and all resolutions were also subject to separate vote counting for small and medium investors.

Under the transaction plan, Orient Securities will acquire 100% of Shanghai Securities through a combination of issuing shares and paying cash. The transaction consideration is RMB 25.12 billion, implying a valuation of approximately 1.25 times price-to-book. The A-share issue price is RMB 10.29 per share. The project was suspended in April for major matters, the first board meeting in May disclosed the transaction plan, the second board meeting in July released the merger report, and shareholder approval was completed in August, taking more than 120 days in total.

Based on financial data as of the end of the first quarter of 2026, after the merger, Orient Securities' total assets will exceed RMB 600 billion. The total number of wealth management client accounts will rise from the current 3.29 million to more than 5 million, with the number of high-net-worth clients (those with assets above RMB 3 million) increasing by more than 50%. The combined branch network will total approximately 250 outlets, including 77 securities branches in Shanghai, ranking first in the industry, and 163 branches in the Yangtze River Delta region, ranking second. Shanghai Securities holds a fund rating business qualification, and only four domestic securities firms currently possess this qualification. Its rating system has published more than 60 issues of fund ratings.

Orient Securities' H1 2026 earnings forecast shows revenue of RMB 9.56 billion, up 19.49% year-on-year; net profit of RMB 4.518 billion, up 30.46%; and return on equity of 5.5%, up 1.23 percentage points. Orient Securities Asset Management's entrusted scale reached RMB 286.8 billion at the end of 2025, up 32.4% year-on-year; its associate China Universal Fund saw non-money market public fund scale exceed RMB 680 billion, up 37%; and the fund advisory business had a retained scale of RMB 17.2 billion, with a reinvestment rate of 76.28%.