Issuer Flash: Guotai Haitong Securities Co., Ltd.

Report date: 2026-09-02 Event date: 2026-08-18 Event title: H1 2026 Interim Results

1. Flash Conclusion

Guotai Haitong Securities' H1 2026 results support the existing view of a large, post-merger securities group with higher disclosed parent net capital and reported risk-control ratios, alongside improving underlying operating momentum. Total revenue and other income rose 47.2% year on year to RMB66.9bn, while profit attributable to equity holders rose 28.7% to RMB20.3bn. The comparison is more informative than the headline alone: the prior-year period contained a large bargain-purchase gain from the Haitong merger, whereas H1 2026 growth was driven by fee and commission income, interest income and investment gains.

The group also reported higher parent net capital and a 269.86% risk coverage ratio, with LCR of 290.72% and NSFR of 145.69% at 30 June. The parent capital leverage ratio, however, declined to 17.96% from 19.57% at end-2025. The company states that its parent risk-control indicators complied with applicable CSRC requirements. Group assets grew 18.3% to RMB2.50tn and liabilities grew 19.6%, leaving market-sensitive earnings, repo and collateral funding, trading and derivative exposures, integration execution and legal-entity differences as the central risks.

For holders with recourse to Guotai Haitong itself, the H1 release is supportive of the consolidated credit view, but it does not establish uniform protection for offshore subsidiaries or financing vehicles. Individual bond analysis still requires the issuer, guarantor, guarantee scope, ranking, currency and governing law. The disclosed sale of the Shanghai Securities stake has clearer consideration than at the May announcement, but had not been completed as of the 18 August 2026 interim-report date and should not yet be assumed to deliver capital or earnings benefits.

2. H1 Earnings and Business Mix

Total revenue and other income was RMB66.853bn in H1 2026, up 47.15% year on year. Profit attributable to equity holders of the company was RMB20.260bn, up 28.74%, and operating profit increased 35.74% to RMB24.903bn. The revenue composition indicates broad-based, but still capital-market-sensitive, improvement: fee and commission income increased 72.93% to RMB25.135bn, interest income increased 36.93% to RMB16.691bn and net investment gains increased 155.03% to RMB23.851bn.

The year-on-year comparison should be read with the merger accounting in mind. Other income and gains declined 91.86% because the H1 2025 period included a relatively large bargain-purchase gain from the absorption merger with Haitong. The decline in that non-recurring item constrained the reported profit-growth rate relative to revenue. This supports the interpretation that H1 2026 operating performance was stronger than a mechanical comparison with the merger-affected prior period suggests, while still leaving a short post-merger history from which to assess recurring earnings and cost synergies.

Institution and transaction business generated RMB28.681bn of total revenue and other income, or 42.9% of the total, and wealth management generated RMB27.249bn, or 40.8%. The diversification across client franchise and market businesses is useful, but neither segment removes sensitivity to market volumes, risk appetite, securities valuations and funding conditions. Investment banking contributed RMB2.343bn (3.5%), while investment management and finance lease together contributed roughly 11.2% of total revenue and other income.

3. Capital, Liquidity and Funding Read-Through

At 30 June, consolidated total assets were RMB2.502tn and liabilities RMB2.114tn, up 18.34% and 19.57%, respectively, from year-end 2025. Equity attributable to shareholders rose 12.89% to RMB373.024bn. Parent net capital rose to RMB225.987bn from RMB185.087bn; risk coverage, LCR and NSFR increased to 269.86%, 290.72% and 145.69%, respectively. In contrast, the capital leverage ratio declined to 17.96% from 19.57%. The company states that the full indicator set complied with applicable CSRC requirements; the directional movement is not a statement of a breach or liquidity shortfall.

The quality of the buffer must be read together with the balance-sheet composition. Financial assets sold under repurchase agreements reached RMB529.872bn, up from RMB466.345bn at end-2025. Margin accounts receivable increased 18.11% to RMB299.491bn, while financial assets at fair value through profit or loss rose 16.17% to RMB799.911bn. The company reported net cash used in operating activities of RMB21.498bn, explaining that increases in trading and derivative financial instruments and margin accounts receivable absorbed cash, partly offset by a rise in financing through financial assets sold under repurchase agreements.

These movements do not evidence a liquidity shortfall, but show why headline parent LCR and NSFR are not substitutes for repo tenor, collateral eligibility and haircuts, derivative-margin needs, unencumbered liquidity, and entity- and currency-specific funding. The H1 report does not provide the full legal-entity and currency liquidity ladder required for an offshore-bond conclusion.

4. Integration and the Shanghai Securities Disposal

The results provide continuing evidence of operating scale and integration activity, including further reorganisations of certain asset-management, capital-investment and innovation-investment entities. They do not establish the remaining integration timetable, common-control effectiveness or risk aggregation across legacy platforms and subsidiaries.

The proposed sale of Guotai Haitong's approximately 24.99% interest in Shanghai Securities became more specific. The company states that the price was set at RMB6.277bn following negotiations based on a filed valuation: RMB4.707bn is to be paid in DFZQ shares and RMB1.570bn in cash. The H1 report says the proposed disposal had not been completed as of its date. It may rationalise overlapping Shanghai securities-sector holdings, but the final capital, accounting and earnings consequences should be assessed only after completion and the relevant transaction disclosures.

The report also proposes a cash interim dividend of RMB3.0 per ten shares, representing about 25.93% of H1 profit attributable to equity holders based on the stated eligible share count. This is a use of earnings to monitor alongside retained earnings, parent regulatory capital, risk charges and any subsidiary funding needs; it is not, on its own, evidence of weakening capital protection.

5. Key Numbers

6. What to Watch Next

• The next parent regulatory-capital, risk coverage, LCR and NSFR disclosure, together with the drivers of changes in net capital and risk capital provisions.
• Repo tenor, collateral and funding composition; margin-finance growth; trading and derivative exposures; and any disclosure on entity- or currency-specific liquidity, especially for offshore subsidiaries.
• Recurring fee, interest and investment-income performance, staff and funding costs, dividend payments and evidence of realised merger cost synergies.
• Completion terms, accounting treatment and capital impact of the Shanghai Securities disposal.
• Detailed current rating-agency reports, support assumptions, and issuer- and instrument-specific bond documentation. Shanghai municipal government-related ownership remains a support consideration, not an explicit guarantee.

7. Sources

• Guotai Haitong Securities Co., Ltd., Interim Report 2026, authorised 18 August 2026, HKEX: https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0818/2026081801763.pdf. Used for all H1 financial, regulatory-capital, liquidity, funding, dividend and disposal facts.
• Guotai Haitong Securities Issuer Summary, 21 May 2026. Used for the pre-event credit view and issuer-structure cautions.
• Guotai Haitong Securities Additional Discussion Report: Post-Merger Credit Watchpoints, 21 July 2026. Used only to identify monitoring questions; its analytical stress thresholds are not treated as company disclosures.