China Galaxy Securities (6881) investor relations material

Executive summary

• Revenue for H1 2026 rose 18.75% year-over-year to RMB22.32 billion, with net profit attributable to owners up 20.18% to RMB7.80 billion and basic EPS at RMB0.66, up 22.22% year-over-year.

• Total assets increased 23.92% from year-end 2025 to RMB1.06 trillion, and equity attributable to owners rose 5.36% to RMB155.70 billion.

• The Board proposed an interim cash dividend of RMB1.50 per 10 shares, totaling RMB1.64 billion, subject to shareholder approval.

• The company maintained strong risk control, meeting all regulatory risk indicators and reporting a gearing ratio of 78.54%.

Financial highlights

• Wealth management revenue grew 32.07% year-over-year to RMB9.78 billion; institutional business revenue surged 79.52% to RMB1.95 billion; international business revenue increased 48.46% to RMB3.05 billion.

• Investment trading revenue declined 22.66% year-over-year to RMB5.00 billion.

• Net cash flow from operating activities was negative RMB35.56 billion, a significant increase in outflows compared to negative RMB4.38 billion in H1 2025, mainly due to increased advances to customers and financial asset purchases.

• Weighted average return on net assets improved to 6.00% from 5.16% a year earlier.

• Commission and handling fee income surged 47.91% year-over-year to RMB6.94 billion, and interest income grew 15.33% to RMB7.56 billion.

Outlook and guidance

• Management expects China's economy to remain stable in H2 2026, with capital market reforms and increased market activity supporting continued industry growth.

• The company will focus on technology finance, green finance, and digital transformation, aiming for high-quality, balanced business development and enhanced risk management.