With the release of Industrial Securities' 2026 interim report, the financial performance of its controlling stake in Xingquan Global Fund (hereafter referred to as Xingquan Fund) has also come to light. On August 19, Industrial Securities published its semi-annual results for 2026, revealing operating revenue of 6.73 billion yuan for the first half, a 24.54% increase year-on-year, alongside a net profit of 2.13 billion yuan, up 60.08%.

As a key profit driver for the parent company, Xingquan Fund delivered an equally impressive performance in the first six months. As of June 30, 2026, the firm reported operating revenue of 2.291 billion yuan and a net profit of 1.012 billion yuan. Compared to the 1.785 billion yuan in revenue and 719 million yuan in net profit recorded during the same period in 2025, this represents growth of roughly 28.3% and 40.7%, respectively.

Looking at assets under management, Xingquan Fund's public fund AUM reached 849.2 billion yuan by the end of June 2026. When including non-public offerings such as segregated accounts, total AUM surpassed 920 billion yuan, marking an increase of over 100 billion yuan within the year. A breakdown of the product mix shows money market funds dominating with a scale of 474.055 billion yuan, contributing the bulk of new asset growth. Bond funds accounted for 204.407 billion yuan, while hybrid funds reached 133.824 billion yuan. Equity funds remained comparatively small at just 11.032 billion yuan. The firm's FOF lineup, totaling 27.174 billion yuan, ranks prominently within the industry, and its pension Y-share holdings are among the top three sector-wide. However, the fee income contribution from this segment remains modest.

Based on second-quarter data for 2026, the combined net profit of Xingquan's 89 funds stood at 33.84 billion yuan for the period, bringing the year-to-date cumulative figure to 106.93 billion yuan. Yet, over a longer timeframe, the volatility in earnings is hard to ignore. In the first quarter of 2026, net profits from the company's public funds totaled 5.713 billion yuan, surging nearly fivefold to 33.84 billion yuan in the second quarter. Still, this has yet to surpass the peak of 38.441 billion yuan seen in the third quarter of 2025. Looking further back, the first quarter of 2024 posted a quarterly loss of 1.689 billion yuan, and the fourth quarter of 2025 recorded a negative return of 2.582 billion yuan. Such dramatic swings in profitability highlight the firm's heavy reliance on equity market beta, leaving the stability of its absolute returns open to question.

In terms of profit contribution from individual products during the first half, Xingquan Herun led the pack with a net profit of 7.442 billion yuan, followed by Xingquan Trend Investment at 4.108 billion yuan and Xingquan Business Model Select at 3.437 billion yuan. These three funds alone generated combined profits approaching 15 billion yuan, underscoring a high concentration of earnings in a handful of flagship products. On the flip side, not all funds delivered positive results. The second-quarter report shows over ten products with negative profits, including Xingquan GangShen Two-Year Holding losing 27.2201 million yuan, Xingquan Jiayi down 31.7313 million yuan, Xingquan Dividend Quantitative Stock A falling 34.4137 million yuan, and Xingquan Xinyue dropping 65.8706 million yuan. Loss-making products are chiefly concentrated in Hong Kong-listed equity themes, dividend strategies, and certain newly launched equity funds.

On the team front, Xingquan Fund employs 46 fund managers, well above the industry average of 26.46. Their average tenure of 5.62 years also slightly exceeds the sector norm of 5.19 years. Notably, the per-manager AUM stands at 18.489 billion yuan, a figure 3.4 times the industry average of 5.408 billion yuan, while each manager oversees an average of 2.02 products, below the sector mean of 2.87. Regarding new issuance activity, Xingquan Fund rolled out 13 products in the first half of 2026, raising a combined 16.209 billion yuan. This already surpasses the seven funds launched throughout all of 2025. Equity products struggled to attract capital, with five funds collectively raising just 1.038 billion yuan, averaging roughly 200 million yuan each. The firm also introduced three FOF products during the period, pulling in 7.3 billion yuan in total.

A look back at historical data shows Xingquan's early entry into the FOF space. In 2020, it launched three FOFs raising 8.605 billion yuan, followed by four in 2021 that gathered 14.259 billion yuan, marking the peak year for FOF issuance. Subsequently, only one FOF was introduced in 2023 and two in 2025, with respective scales of 1.076 billion yuan and 1.559 billion yuan, reflecting a slower cadence. The release of three FOFs in just the first half of 2026 signals an accelerated pace. Overall, whether for equity or FOF products, investor enthusiasm for equity-linked assets remains cautious. The average single-fund size of just 200 million yuan for equity offerings does not align with the firm's strong reputation for active management. While FOFs benefit from policy support for the third pillar of pensions, their near-term contribution to scale is still limited.

On June 27, 2025, the China Securities Regulatory Commission officially approved Xingquan Fund to establish a subsidiary in Singapore, named Xingquan Global Asset Management (Singapore) Pte. Ltd., with a registered capital of 10 million Singapore dollars. From the steady progress of its Singapore arm to the top-three industry ranking in pension Y-share holdings, Xingquan Fund is clearly not content with being a 'small but beautiful' firm. Instead, it aims to go further down the path of 'large and specialized.' Nevertheless, high profit volatility, a reliance on money market funds for scale growth, persistently weak demand for new equity offerings, and losses in certain thematic products all present structural challenges that cannot be overlooked. Against a backdrop of intensifying competition and ongoing fee reforms in the public fund industry, whether the firm can sustain asset growth while smoothing out earnings fluctuations and enhancing the profitability of its multi-strategy products remains a substantive test for the second half of the year and beyond.