China Merchants Securities (CMSC) reported Q1-2026 operating revenue of RMB 6.97 billion, up 47.96% year-on-year, driven primarily by stronger brokerage commissions and proprietary trading results.

Net profit attributable to shareholders reached RMB 3.27 billion, a 41.73% increase over the same period last year. Basic and diluted earnings per share both rose to RMB 0.36, compared with RMB 0.25 a year earlier.

Revenue composition shifted as net fee and commission income advanced 25.27% to RMB 3.16 billion, while net interest income expanded 246.29% to RMB 0.72 billion on higher margin financing spreads and lower debt-financing costs. Investment gains declined 36.40% to RMB 2.11 billion, but were offset by a swing in fair-value changes, which contributed a gain of RMB 1.05 billion versus a loss in the prior-year quarter.

Total operating expenses climbed 38.86% to RMB 3.04 billion, reflecting higher business and administrative costs accompanying revenue growth. Income tax expense almost tripled to RMB 0.55 billion, yielding a profit margin of 46.93%.

Cash flow improved markedly: operating activities generated RMB 19.69 billion in net inflows versus an outflow of RMB 37.21 billion in Q1-2025, mainly due to a RMB 27.62 billion increase in cash from brokerage client payables. Financing activities provided a net inflow of RMB 10.05 billion, supported by RMB 42.63 billion in bond issuance.

As at 31 March 2026, total assets stood at RMB 788.35 billion, 4.63% higher than year-end 2025, while equity attributable to shareholders edged up 2.40% to RMB 141.32 billion. Key regulatory ratios remained solid: net capital amounted to RMB 90.10 billion, producing a risk coverage ratio of 249.78% and a liquidity coverage ratio of 161.47%, all comfortably above domestic regulatory requirements.