Huatai Securities Co., Ltd. (HTSC) reported a sharp rebound in the first quarter of 2026, buoyed by active market trading and higher contribution from wealth management, institutional and international businesses.
Revenue and Profitability • Operating revenue rose 41.48 % year-on-year to RMB 10.42 billion. • Net profit attributable to shareholders increased 31.79 % to RMB 4.80 billion, lifting basic earnings per share to RMB 0.51. • Net fee and commission income expanded 47.15 % to RMB 4.37 billion, underpinned by a 50 %-plus jump in brokerage and solid gains in investment banking and asset management. • Investment gains climbed to RMB 4.94 billion, while fair-value changes swung to a RMB 0.29 billion gain from a loss a year ago.
Balance-sheet Expansion • Total assets reached RMB 1.23 trillion, up 13.74 % from end-2025, driven by higher trading assets and a RMB 40.24 billion rise in settlement reserve funds held for clients. • Owners’ equity attributable to shareholders edged up 2.16 % to RMB 211.41 billion. • Trading financial liabilities jumped 45.85 % to RMB 53.12 billion, mainly reflecting a new convertible-bond issuance.
Capital Adequacy and Liquidity • Net capital at the parent company rose to RMB 103.41 billion; the risk coverage ratio improved to 310.47 % from 298.67 %. • Liquidity coverage ratio more than doubled to 409.47 %, while the net stable funding ratio strengthened to 152.57 %. • Capital leverage remained steady at 12.98 %, well above regulatory minimums.
Cash Flow • Operating activities generated RMB 35.91 billion in net inflows, reversing a RMB 10.82 billion outflow in the prior-year quarter, aided by higher brokerage settlement funds and repurchase business.
Cost Trend • Business and administrative expenses rose 37.46 % to RMB 4.32 billion, broadly in line with revenue growth. • Income tax expense more than doubled to RMB 1.06 billion on higher pre-tax earnings.
Corporate Actions During the quarter, shareholders approved a new three-year board mandate and confirmed senior management appointments. In addition, wholly owned subsidiary Huatai Purple Gold Investment launched two equity funds with a combined target size of RMB 7.06 billion, while Huatai Futures injected RMB 267.36 million into its Hong Kong unit to support overseas expansion.
Non-recurring Items Non-recurring gains/losses were negligible at negative RMB 1.35 million, leaving underlying performance essentially unchanged.
Outlook With stronger fee income, a healthier trading book and reinforced capital buffers, HTSC entered the second quarter with ample liquidity and improved risk metrics, positioning the group to capitalise on ongoing market recovery without breaching any regulatory thresholds.
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