Western Securities' first annual report after acquiring Guorong Securities: Revenue of 5.99B in 2025, down 10%, with declines in proprietary trading and asset management

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Blue Whale News, April 2 (Reporter Hu Jie) Western Securities (002673.SZ) released its first annual report after acquiring Guorong Securities.

According to the financial report, in 2025 Western Securities recorded operating revenue of 5.985 billion yuan, down 10.84% year-on-year; net profit attributable to shareholders was 1.754 billion yuan, up 24.97% year-on-year. The company completed its acquisition of a 64.5961% equity interest in Guorong Securities Co., Ltd. on October 31, 2025. This non-same-control enterprise merger formed goodwill of 1.268 billion yuan.

From the perspective of revenue from principal business segments, Western Securities’ net fee and commission income for the full year was 2.418 billion yuan, up 34.98% year-on-year, mainly due to an increase in net income from securities brokerage business and investment banking business. Investment income was 2.75 billion yuan, up 24.93% year-on-year, mainly due to an increase in gains obtained from disposing of financial instruments. Business management fees were 2.764 billion yuan, up 10.51% year-on-year, mainly due to the acquisition of Guorong Securities.

By business segment, the wealth and credit segment achieved operating revenue of 1.845 billion yuan for the year, up 25.12%. The cumulative number of new accounts opened exceeded 200,000, up 72% year-on-year. The assets under management (AUM) of public funds increased by 6.16% year-on-year. Agency distribution revenue increased by 28.26% year-on-year, and the scale of equity ETFs increased by 24.42% year-on-year. As of the end of December, the balance of margin financing and securities lending business was 12.315 billion yuan, up 24.39% year-on-year.

The proprietary investment segment achieved operating revenue of 1.882 billion yuan, down 8.89% year-on-year.

The investment banking segment achieved revenue of 390 million yuan, up 42.09% year-on-year. In terms of equity-related business, the company successfully got two Beijing Stock Exchange IPO projects, for which it served as the exclusive sponsor and lead underwriter. At year-end, there were 9 equity projects under review and 15 IPO projects under guidance.

In addition, the asset management business achieved operating revenue of 137 million yuan, down 18.38% from the previous year, with total AUM reaching 36.420 billion yuan. Notably, the number and scale of asset management product issuance increased significantly compared with the same period last year. In particular, the AUM of bank-distributed products increased markedly from the end of last year; the AUM of core bank distribution channels grew by nearly 50% year-on-year.

2025 was a key year for Western Securities’ capital operations. On August 14, 2025, the China Securities Regulatory Commission approved Western Securities’ qualification to become a major shareholder of Guorong Securities. In September of the same year, Western Securities formally became the controlling shareholder of Guorong Securities, and its shares held accounted for 64.60% of Guorong Securities’ total share capital.

What should be noted is that the company’s board of directors approved its 2025 profit distribution proposal. It plans to distribute cash dividends of 0.90 yuan per 10 shares to all shareholders (including tax), totaling 402 million yuan. Combined with the interim dividend the company already implemented in 2025, the total cash dividends for 2025 for the full year will reach approximately 536 million yuan, accounting for 30.54% of the net profit attributable to shareholders of listed companies in the company’s consolidated financial statements for the current year. In addition, in 2025, the company repurchased 5.7947 million shares through centralized bidding, paying a total amount of 0.47 billion yuan, to be used for implementing equity incentives or an employee stock ownership plan in the future.