Huaxing Capital Holdings (01911) announced interim results. Profit attributable to owners of 404.72 million yuan decreased by 37.72% year-on-year

According to the Zhitong Finance App, Huaxing Capital Holdings (01911) announced its 2026 interim results. Total revenue was about 412 million yuan, a year-on-year decrease of 3.05%; total revenue and net investment income were about 494 million yuan, an increase of 8.2% over the previous year. Profit attributable to company owners was 404.72 million yuan, a year-on-year decrease of 37.72%; adjusted net profit attributable to company owners was 10.989 million yuan, turning a loss into a profit over the previous year.

The growth momentum of investment banking business increased markedly in the first half of 2026. During the reporting period, the investment banking business achieved total revenue of about 91 million yuan, an increase of 31.4% over the previous year. Artificial intelligence and physical intelligence are still important areas of business advantage. A total of 18 related transactions were completed in the first half of 2026, accounting for 75% of the number of private equity financing projects and about 76% of the transaction scale. At the same time, business coverage was further extended to emerging frontier directions such as AI4S (scientific intelligence), brain-computer interface, quantum computing, and commercial aerospace. In terms of mergers and acquisitions and cross-border capital market business, the Group continues to accumulate project and execution experience around industrial integration and strategic transactions, and further enrich Hong Kong and US stock IPOs, refinancing, ATMs and other capital market products and service scenarios. Through continuous optimization of team structure and resource allocation, investment banking business operating costs were reduced by 17.4% year-on-year, and operating profits were regained during the reporting period. Business growth and operational efficiency improvements are gradually being transformed into more sustainable profitability.

The investment management business continues to focus on project exits, DPI increases, and the redemption of ancillary benefits. As of June 30, 2026, the Group's asset management scale was approximately 26.8 billion yuan. During the reporting period, the fund completed the total or partial withdrawal of several projects, with an withdrawal amount of about 1.1 billion yuan. In addition to listing and exit, the Group continued to promote asset exits through various methods such as repurchases, mergers and acquisitions, and primary market share transfers. The number of unlisted exit projects already accounted for more than half of the total number of withdrawn projects during the reporting period. As the withdrawal process continues to advance, 5 of the 11 main funds and several project funds have now exceeded 100% DPI, and have crossed the threshold yield to achieve ancillary benefits. In the first half of 2026, the Group registered about 150 million yuan of ancillary equity, and has achieved a total of about 1.4 billion yuan in ancillary equity. As of the end of the reporting period, total unrealized ancillary equity was about 1.2 billion yuan, corresponding to net ancillary equity of about 300 million yuan. During the reporting period, the total revenue and net investment income of the investment management business was approximately $188 million, and stable operating profit was maintained. At the same time, the Group continues to streamline its operating structure and improve management efficiency. Related operating expenses have declined markedly over the same period last year, and resource allocation is in line with the current fund management scale.

Huaxing Securities further demonstrated the effectiveness of optimizing the business structure and improving operating efficiency during the reporting period. In the first half of 2026, Huaxing Securities's total revenue and net investment income was about 181 million yuan, an increase of 40.3% over the previous year, and achieved operating profit of about 8.4 million yuan, laying a solid foundation for achieving profit throughout the year. The retail and brokerage business continued to grow rapidly, achieving revenue of approximately $78 million in the first half of 2026, an increase of 36% over the previous year. By the end of the reporting period, Duoduojin App had accumulated about 640,000 registered users, up 12% from the end of 2025, the number of customers increased 11% from the end of 2025, the customer asset size increased 23% from the end of 2025, and the customer base and asset accumulation continued to grow. The asset management business maintained rapid growth driven by investment and research capabilities and product system construction, and the wealth management business also started steadily during the reporting period. At the same time, Huaxing Securities continues to optimize the allocation of its own funds, diversify risks through multi-asset and multi-strategy methods such as fixed income, FOF (portfolio funds), and quantification, improve the efficiency of capital use, and continue to deepen the research business of hard technology investment banks and specialized institutions. With the collaborative development of key businesses, the revenue structure of Huaxing Securities has been further optimized, and its operating quality and profit resilience have continued to improve.