Guotai Junan Securities (601211) Q1 2026 earnings summary

Executive summary

• Revenue surged 58.91% year-over-year to RMB 16.23 billion, driven by active capital markets and expanded business scale post-merger.

• Net profit attributable to shareholders dropped 47.82% year-over-year to RMB 6.39 billion due to a high base last year from negative goodwill related to the merger.

• Operating cash flow turned positive at RMB 54.32 billion, a significant improvement from negative RMB 49.79 billion a year ago.

Financial highlights

• Total assets increased 6.88% from year-end to RMB 2.26 trillion.

• Basic and diluted EPS were RMB 0.36, down 68.97% year-over-year.

• ROE dropped by 4.51 percentage points to 1.95%.

• Net profit excluding non-recurring items rose 73.43% year-over-year.

• Non-recurring gains totaled RMB 677.62 million, mainly from government subsidies.

Outlook and guidance

• Management attributes revenue growth to robust market activity and business expansion, but notes last year’s profit was inflated by one-off negative goodwill.