Net Profit Attributable To Parent Company Surges by Nearly 70%; CSC’s Semi-Annual Report Shows Broad-Based Strength

Among the four top-tier securities firms known as the "Three Zhongs and One Hua," CSC has historically maintained a low profile. However, its latest semi-annual report is certainly worth noting.

CSC (Stock Code: 601066) released its 2026 semi-annual report, showing that in the first half of 2026, the company achieved operating revenue of RMB 16.229 billion, a year-on-year increase of 51.11%; Net Profit Attributable To Parent Company amounted to RMB 7.639 billion, a year-on-year increase of 69.44%. Both revenue and net profit recorded robust growth.

Considering that CSC completed its role as joint sponsor and lead underwriter for Changxin Technology, the leader in the memory storage sector, in the second half of the year—a deal that will bring substantial underwriting income and related derivative gains—the company’s future performance holds significant "room for imagination."

Investment Banking: Multiple Metrics Rank Among Top Three in the Industry

In the investment banking segment, the business generated operating revenue of RMB 1.113 billion during the reporting period, a slight year-on-year decrease of 0.86%.

In equity financing, the company completed 16 A-share equity financing projects during the reporting period, with a total underwriting amount of RMB 27.748 billion, ranking 4th and 3rd in the industry, respectively. It also completed three convertible bond projects with an underwriting amount of RMB 4.289 billion, ranking 3rd and 2nd in the industry, respectively. As of the end of the reporting period, the company had 38 IPO projects under review, ranking 3rd in the industry.

In debt financing, the company completed 2,355 lead underwriting projects during the reporting period, with a total underwriting amount of RMB 834.217 billion, both figures ranking 3rd in the industry. Among these, it underwrote 838 corporate bond projects with an amount of RMB 300.539 billion, both ranking 3rd in the industry. In financial advisory services, the company completed three major asset restructuring projects for A-share listed companies during the reporting period, ranking 5th in the industry by number of deals, with a transaction value of RMB 39.699 billion, ranking 4th in the industry. Notably, it assisted Hongchuang Holdings in completing the largest-ever private enterprise restructuring project in the history of the A-share market.

Wealth Management: Breakthroughs in New Accounts and Product Scale

In the wealth management segment, the business generated operating revenue of RMB 4.666 billion during the reporting period, a year-on-year increase of 26.83%.

Specifically, in brokerage and wealth management services, which serve as the "business foundation," the company acquired 2.0265 million new securities brokerage clients during the reporting period, a year-on-year increase of 143.92%. By the end of the reporting period, the cumulative number of clients exceeded 19 million. The total scale of financial products under custody surpassed RMB 477 billion. The scale of buyer-side customized services grew by 266.94% year-on-year, and investment advisory income increased by 143.52% year-on-year during the reporting period.

In margin financing and securities lending, the balance stood at RMB 108.614 billion at the end of the reporting period, an increase of 27.61% from the end of the previous year, with a market share of 3.60%. The number of margin financing and securities lending accounts reached 229,000, an increase of 5.76% from the end of the previous year. In repurchase agreements, the principal balance of stock pledge repurchase transactions stood at RMB 4.913 billion as of the end of the reporting period.

Trading and Institutional Client Services: Performance Up 94% Year-on-Year

The trading and institutional client services segment is the company’s largest source of revenue.

During the reporting period, this segment generated operating revenue of RMB 9.072 billion, a year-on-year increase of 94.12%. In prime brokerage services, the number of active clients on the company’s Prime Brokerage (PB) system reached 26,969 as of the end of the reporting period, a year-on-year increase of 30.20%.

In custody services, the company added 24 new public mutual fund custody accounts during the reporting period, ranking first in the industry. As of the end of the reporting period, the scale of public mutual funds under custody was RMB 298.454 billion, ranking among the top three in the industry.

In alternative investments, CSC Investment completed 21 investment projects during the reporting period, with a total investment amount of RMB 770 million. Additionally, the company’s bond sales volume remained firmly within the top three in the market.

Asset Management: Entrusted Scale Reaches RMB 625.6 Billion

In the asset management segment, the business generated operating revenue of RMB 905 million during the reporting period, a year-on-year increase of 41.14%.

In securities asset management, the scale of funds under management entrusted by clients reached RMB 625.575 billion as of the end of the reporting period, a year-on-year increase of 28.92%.

In fund management, CSC Fund, as the fund manager, launched the first batch of commercial real estate public REITs nationwide and the first such product in Beijing—the CSC Shounong Commercial REIT. As of the end of the reporting period, the asset management scale of CSC Fund was RMB 172.696 billion, including a public fund management scale of RMB 104.153 billion.

In private equity investment, CSC Capital added RMB 4.501 billion in new fund management scale during the reporting period, ranking 4th among private equity subsidiaries of securities firms. It completed project investments totaling RMB 1.913 billion, a year-on-year increase of 91.49%. As of the end of the reporting period, it managed 86 registered funds, with a fund management scale exceeding RMB 82.4 billion.

Dividends and Future Outlook: More Than Just Current Highlights

Regarding dividends, the company’s 2026 interim profit distribution plan proposes a cash dividend of RMB 2.90 (tax inclusive) for every 10 shares, based on the total share capital of 7.757 billion shares as of June 30, 2026. This plan is still subject to approval by the shareholders’ meeting.

Furthermore, the company’s underwriting strengths in the technology sector will continue to exert influence in the second half of 2026. CSC has already completed its role as joint sponsor and lead underwriter for Changxin Technology, the largest weighted technology stock by market capitalization in the A-share market. The resulting benefits, including underwriting fees and derivative gains from alternative co-investments, are expected to materialize gradually in the future.