Guotai Haitong Securities Co., Ltd. (02611) reported a total asset impairment provision of RMB1,629.79 million from October to December 2025, exceeding 10% of the audited net profit attributable to equity holders for 2024. The impairment consists of RMB1,603.97 million in credit loss expenses and RMB25.82 million in other asset impairments, reducing the Group’s total profit and net profit attributable to equity holders by RMB1,629.79 million and RMB1,187.25 million, respectively.
A significant allocation of credit loss expenses was made for long-term receivables (RMB727.40 million) and finance lease receivables (RMB161.53 million), linked to the leasing business added through the merger with Haitong Securities. This business adopts a profit model that balances risk control and asset quality, with impairment provisions determined based on changes in credit risk and the latest assessments of collectibility.
Other key items include provisions for other loans and receivables, financial assets held under resale agreement, margin accounts receivable, and other debt investments. The provisions are calculated using Probability of Default/Loss Given Default methods or individual impairment assessments, in line with relevant accounting policies and regulations for business combinations under non-common control.
The figures remain subject to audit. The company has advised investors to exercise caution when interpreting these preliminary assessments, as final results may differ upon completion of the annual audit.
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