China Galaxy Securities (6881) Q4 2025 earnings summary

Executive summary

• Achieved total revenue, gains, and other income of RMB38.34 billion in 2025, up 12.60% year-over-year, with net profit attributable to owners reaching RMB12.52 billion, a 24.81% increase year-over-year.

• Weighted average return on net assets rose to 9.84%, up 1.54 percentage points year-over-year.

• Total assets grew to RMB855.75 billion, up 16.04% from the end of 2024; equity attributable to owners increased by 5.20% to RMB147.78 billion.

• Completed the three-year strategic plan, maintaining a leading industry position and laying a foundation for high-quality development.

Financial highlights

• Commission and handling fee income rose 34.93% to RMB11.39 billion, driven by increased trading volume.

• Net interest income increased 16.48% to RMB4.48 billion, despite a 3.57% decline in total interest income due to lower deposit rates.

• Investment gains and losses reached RMB13.12 billion, up 15.59% year-over-year.

• Operating expenses (excluding commission, interest) increased 13.51% to RMB13.90 billion, mainly due to higher staff costs and impairment losses.

• Net cash flows from operating activities were negative RMB25.51 billion, reflecting increased advances to customers and repurchase agreements.

• Cash dividend for 2025 proposed at RMB2.25 per 10 shares, with total annual cash dividend of RMB3.83 billion, representing 30.57% of net profit.

Outlook and guidance

• 2026 marks the start of a new five-year strategic plan, focusing on high-quality development, serving the real economy, and enhancing international competitiveness.

• Plans to strengthen core capabilities in technology finance, green finance, inclusive finance, pension finance, and digital finance.

• Industry expected to benefit from ongoing capital market reforms, with a focus on professional capability and operational efficiency.