Soochow Securities H1 Net Profit Up 25.32% to RMB 2.42 Billion

Soochow Securities' 2026 interim report showed first-half operating revenue of RMB 5.751 billion, up 29.88% year on year, and net profit attributable to shareholders of RMB 2.420 billion, up 25.32%, a record high and ranking 15th among listed securities firms. Basic earnings per share were RMB 0.49, and weighted average return on equity was 5.53%, up 1.00 percentage point year on year.

By business line, investment trading generated revenue of RMB 2.501 billion, accounting for 43.48% of total revenue; wealth management contributed RMB 2.382 billion, or 41.41%; investment banking brought in RMB 577 million, or 10.03%; and asset management added RMB 255 million, or 4.43%.

In wealth management, total client numbers grew 10.38% from end-2025, and client assets reached RMB 1.16 trillion, up RMB 312.123 billion, or 36.61%. Shanghai and Shenzhen A-share stock and fund trading volume was RMB 6.62 trillion, up 96.74% year on year, while securities brokerage net revenue rose 53.17% to RMB 1.363 billion. Buyer-side advisory clients and assets grew 37.42% and 35.60% from end-2025, respectively. Financial product distribution (excluding money market funds) reached RMB 36.753 billion in held assets, up 33.63% from end-2025, with private fund holdings up 37.96%. Margin financing and securities lending balances were RMB 34.153 billion, up 21.94% from end-2025, with an overall maintenance ratio of 337.06%.

Soochow Futures recorded cumulative trading volume of RMB 9.21 trillion, up 37.84% year on year, and average daily client equity of RMB 23.662 billion, up 62.30%.

In investment banking, the company completed six A-share equity financing mandates in the first half, including five IPOs (four on the Beijing Stock Exchange) and one refinancing. It ranked fourth in IPO sponsorship and underwriting by number of deals, third in Beijing Stock Exchange IPOs, and first in Jiangsu region IPO sponsorship market share. It filed eight A-share IPO applications, ranking 12th, and continued to supervise 267 New Third Board companies, including 105 at the innovation layer. In bond underwriting, it completed over 360 projects with total underwriting scale exceeding RMB 100 billion, including over 40 special-purpose bonds (technology, green and low-carbon transition-linked, SME support, and rural revitalization) totaling over RMB 12 billion. Asset securitization deals included rail transit REITs and talent rental housing REITs, including the first approved rail transit REIT nationally and Jiangsu's first talent rental housing REIT.

In international business, Soochow Securities International and Soochow Securities Singapore facilitated two Hong Kong listings and completed 25 offshore bond projects with issuance scale of nearly USD 2.6 billion.

Investment trading revenue rose 18.52% year on year to RMB 2.501 billion, with operating profit of RMB 2.126 billion and an operating margin of 85.02%. Equity proprietary trading focused on stability and absolute returns, increasing allocation to high-dividend assets and participating in technology and Suzhou-related investments. Fixed income maintained a dual strategy of allocation and trading. In alternative investments, Soochow Innovation Capital focused on hard-tech sectors such as commercial aerospace, robotics, and semiconductors, posting first-half revenue of RMB 323 million and net profit of RMB 239 million.

Asset management revenue rose 18.44% year on year to RMB 255 million, accounting for 4.43% of total revenue, with an operating margin of 18.64%. Net asset value under management reached RMB 72.527 billion, with 38 new collective and single-asset products launched, and net asset management fee income up 11.93% year on year. Soochow Fund held public fund assets of RMB 65.830 billion, up 34.94% from end-2025; non-money market funds reached RMB 46.299 billion, up 66.22%; equity funds totaled RMB 27.114 billion, up 77.53%; and combined public and private mandate funds reached RMB 69.351 billion, up 33.37%. Soochow Venture Capital set up new funds with total committed capital exceeding RMB 2.4 billion, managed funds with committed capital over RMB 20 billion, and supported over 10 hard-tech companies through direct investment.

The company is advancing its acquisition of an 83.68% stake in Donghai Securities. The transaction was approved by an extraordinary shareholders' meeting on June 18, accepted by the Shanghai Stock Exchange on June 25, and the company completed its response to the review inquiry letter on August 25.