China Merchants Securities Co., Ltd. (CMSC) reported a sharp earnings improvement for the six months ended 30 June 2026. Net profit attributable to shareholders jumped 104.87% year-on-year to RMB10.62 billion, while basic earnings per share doubled to RMB1.19. Weighted average ROE rose to 8.22% from 4.18% a year earlier.

Total revenue, other income and gains reached RMB27.27 billion, up 80.86%. Key revenue drivers were: • Wealth management & institutional business: RMB12.47 billion (+39.74%); • Investment & trading: RMB12.75 billion (+164.55%); • Investment banking: RMB0.64 billion (+51.86%); • Investment management: RMB1.30 billion (+131.69%).

Operating expenses climbed 48.15% to RMB14.99 billion, driven mainly by staff costs of RMB6.88 billion (+107.37%) and fee & commission expenses of RMB2.38 billion (+72.61%). Net cash used in operating activities reversed to an outflow of RMB3.64 billion (H1 2025 inflow: RMB17.04 billion), reflecting higher advances to customers. Cash and cash equivalents stood at RMB29.97 billion, up RMB8.81 billion from 31 December 2025.

Financial soundness indicators remained solid: parent-company net capital was RMB87.09 billion; the risk coverage ratio reached 227.55%; capital leverage ratio was 11.48%; and liquidity coverage ratio stood at 152.85%. Total assets increased 15.65% to RMB871.41 billion, while equity attributable to shareholders grew 4.91% to RMB144.79 billion.

The board approved an interim cash dividend of RMB1.67 (tax inclusive) for every 10 shares, with no bonus shares or capitalisation of reserves. The dividend will be distributed based on the share register on the record date to be announced, with payment targeted before 25 October 2026.

All risk control metrics remained within regulatory limits during the period, and the Group reported no major compliance or safety incidents. The interim results are unaudited; KPMG has issued a review report with no modifications.