Shenwan Hongyuan Group Co., Ltd. released its unaudited first-quarter results for 2026, showing double-digit top- and bottom-line growth driven by stronger brokerage, investment banking and interest income.

Operating Performance • Operating income increased 11.72% year-on-year to RMB 5.93 billion. • Net profit climbed 16.57% to RMB 2.62 billion; profit attributable to shareholders rose 19.15% to RMB 2.36 billion. • Basic and diluted earnings per share came in at RMB 0.09, up 12.50% from the prior-year period. • Weighted average return on equity improved 0.21 percentage point to 2.08%.

Revenue Mix Highlights • Net fee and commission income from brokerage business surged 44.36% to RMB 1.90 billion, reflecting higher agency securities trading volumes. • Net interest income swung from RMB 19 million a year earlier to RMB 0.29 billion, mainly on higher earnings from cash equivalents, settlement reserves and margin financing. • Combined investment income and fair-value gains totaled RMB 3.02 billion, 9.64% lower than the year-ago level, as derivative-related results normalized. • Other business income jumped nearly six-fold to RMB 20.88 million, supported by market-making services. • Foreign-exchange movements produced a loss of RMB 48.24 million versus a loss of RMB 1.27 million a year earlier.

Expense and Impairment Trends • Operating expenses rose 6.17% to RMB 2.66 billion, largely due to higher general and administrative costs. • The group booked a RMB 29.72 million net reversal of credit impairments, compared with a RMB 26.62 million charge in Q1 2025. • An additional RMB 2.46 million of other asset impairment was recognized this quarter.

Cash Flow and Liquidity • Net cash from operating activities fell 47.00% year-on-year to RMB 8.93 billion, mainly reflecting changes in repurchase business volumes and client balances. • Net cash from investing activities swung to an inflow of RMB 8.95 billion, aided by RMB 8.06 billion of investment redemptions. • Financing cash flow recorded an inflow of RMB 5.11 billion, as bond and debt issuance (RMB 44.89 billion) exceeded repayments. • Period-end cash and cash equivalents stood at RMB 211.33 billion, up 12.16% from year-end 2025.

Balance Sheet • Total assets expanded 3.07% quarter-to-date to RMB 764.35 billion. • Total equity attributable to shareholders edged up 2.72% to RMB 114.64 billion. • Financial liabilities held for trading nearly doubled to RMB 21.60 billion, reflecting larger bond short-selling positions. • Deferred tax liabilities rose 553.52% to RMB 0.41 billion, linked to increased taxable temporary differences.

Subsidiary Capital Adequacy (Shenwan Hongyuan Securities) • Net capital rose 4.46% to RMB 93.54 billion, pushing the risk coverage ratio to 400.90% (up 32.14 percentage points). • Liquidity coverage ratio improved to 159.67%; net stable funding ratio reached 149.20%, both comfortably above regulatory thresholds.

Equity Structure The company had 25.04 billion shares outstanding. China Jianyin Investment held 26.34% of total shares, while Central Huijin Investment owned 20.05%. H-share investors, represented by HKSCC Nominees, accounted for 10.00%.

Accounting Policy Update Results for the comparable period in 2025 were retrospectively adjusted following the Ministry of Finance’s guidance on standard warehouse-receipt transactions effective 1 January 2025.

Shenwan Hongyuan Group’s first-quarter performance underscores continued momentum in core brokerage operations and improved funding efficiency, while maintaining robust risk-control metrics across its securities subsidiary.