Guotai Haitong's first annual report after the merger: both revenue and net profit saw significant increases, with total assets exceeding 2.1 trillion.

Cathay Haitong delivers its first annual report following the historic merger.

The annual report shows that in 2025, Cathay Haitong’s total assets exceeded 2.1 trillion, ranking first in the industry. It achieved revenue of RMB 63.1 billion and net profit of RMB 27.8 billion, with both figures seeing substantial growth.

Behind the doubling of performance, on the one hand, both wealth management and investment returns have surged dramatically; on the other hand, the negative goodwill generated during the merger also contributed to profits for the period.

Return on Net Assets Near 10%

According to the financial report, in 2025 Cathay Haitong recorded operating revenue of RMB 63.107 billion, up 87.40% year over year; net profit attributable to owners of the parent company was RMB 27.809 billion, up 113.52% year over year; and net profit after deducting non-recurring gains and losses was RMB 21.388 billion, up 71.93% year over year.

In terms of asset scale, by end-2025, the company’s consolidated total assets reached RMB 2.11 trillion, up 101.80% from the end of the prior year; net assets attributable to the parent were RMB 330.417 billion, up 93.48% from the end of the prior year.

Cathay Haitong’s weighted average return on equity (ROE) was 9.78%, up 1.64 percentage points year over year.

Wealth Management Business Becomes the Mainstay of Revenue

From the revenue structure, both the consolidation effect and the increased activity in the 2025 market trading collectively drove an explosive growth in Cathay Haitong’s various principal businesses.

Wealth management business becomes the absolute mainstay of revenue. For the full year, operating revenue was RMB 24.950 billion, up 114.77% year over year, and the gross margin rose sharply by 14.87 percentage points to 54.01%.

The number of domestic customers reached 39.33 million, and the market share in stock and fund trading was 8.56%, with both ranking first in the industry.

The institutions and transaction business also performed strongly, achieving operating revenue of RMB 19.594 billion, up 43.99% year over year.

Benefiting from an increase in investment returns from trading financial instruments, the company’s investment income for the full year reached RMB 26.700 billion, doubling year over year (+105.07%).

In addition, the investment banking business achieved operating revenue of RMB 4.747 billion, up 60.21% year over year; the asset management business achieved operating revenue of RMB 7.616 billion, up 63.18% year over year. After the merger of Haitong Securities, the newly added finance lease business contributed operating revenue of RMB 5.491 billion in 2025.

Looking Ahead, It Will Accelerate Integration and Integration Efforts

2025 is the “first year of integration” for Cathay Haitong to complete the legal-entity switch and customer migration.

For its forward guidance for 2026, management clearly stated that this will be an enterprising year to kick off a new three-year development plan and further deepen integration and merger synergies.

In terms of the company’s key tasks for the full year, first, it is to推进 in-depth integration and merger efforts, accelerate the integration and development of subsidiaries, and continue to unlock the integration efficiency of the parent company;

Second, it will continuously optimize the synergy and coordination mechanisms, fully enhance service capabilities, improve the customer service system, strengthen core service capabilities, and speed up international development;

Third, it will continue to deepen reforms, unleash internal growth momentum, improve the level of refined management, and firmly implement the “ALL in AI” strategy.

Dividends and Buybacks Total Nearly RMB 10 Billion

The company’s 2025 profit distribution proposal is to use, as the base, the total share capital of the company as of the equity registration date for this dividend and distribution, after deducting the shares held by the company’s repurchase-dedicated securities account, and to distribute cash dividends of RMB 3.5 per 10 shares (including tax) to A-share shareholders and H-share shareholders.

Based on this calculation, the total cash dividend to be distributed is expected to be RMB 6.130 billion (including tax). The total cash dividend the company plans to distribute for the year, including the cash dividends distributed in the 2025 interim period, totals RMB 8.757 billion (including tax).

Adding to the RMB 1.211 billion share repurchases already carried out during the year, the total amount of dividends and buybacks for the full year reaches RMB 9.968 billion, accounting for 35.84% of the company’s net profit attributable to the parent for 2025.

The company’s 2025 profit distribution proposal has already been reviewed and approved at the 12th meeting of the 7th session of the board of directors. It still requires approval by the shareholders’ meeting of the company.

Risk Disclosure and Disclaimer Clauses

        There are risks in the market; investing requires caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situations, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article align with their specific circumstances. Invest at your own risk; responsibility shall be borne by the investor.