Dongfang Securities Co., Ltd. (operating in Hong Kong as “DFZQ”) released its unaudited first-quarter 2026 report, delivering solid top- and bottom-line growth and a sharp turnaround in operating cash flow.

Revenue and Earnings • Operating income rose 5.29% year on year to RMB 4.09 billion, driven by stronger fee, commission and interest income. • Total profit climbed 14.59% to RMB 2.01 billion. • Net profit attributable to shareholders increased 10.55% to RMB 1.59 billion; basic EPS improved to RMB 0.19, up 18.75%. • After stripping out RMB 97.44 million of non-recurring gains—mainly government grants—core net profit advanced 5.83% to RMB 1.49 billion. • Return on equity edged up 0.15 ppt to 1.94%.

Revenue Composition and Cost Dynamics • Net fee and commission income expanded 22.6% to RMB 1.79 billion, supported by brokerage, investment banking and asset-management businesses. • Net interest income surged 82.4% to RMB 402 million, reflecting a reduction in funding costs. • Investment gains reached RMB 2.06 billion, up 18.0%, while fair-value changes swung to a RMB 257.71 million loss from a prior-year gain, tempering overall revenue growth. • Business and administrative expenses declined 8.4% to RMB 2.03 billion, contributing to the profit uplift.

Balance-Sheet Expansion and Risk Metrics • Total assets grew 6.08% from end-2025 to RMB 516.48 billion. • Shareholders’ equity increased 2.58% to RMB 84.82 billion. • Net capital rose 10.4% quarter on quarter to RMB 59.10 billion, lifting the risk coverage ratio to 424.47% from 372.89%. Liquidity coverage improved to 224.40%, while the net stable funding ratio climbed to 143.34%.

Cash Flow Rebound • Operating activities generated RMB 11.27 billion in net cash, reversing a RMB 4.74 billion outflow in the prior-year period. • Robust inflows reflected higher trading agency receipts and a decline in repurchase balances. • Cash and cash equivalents at quarter-end stood at RMB 130.17 billion, up RMB 32.46 billion since year-end.

Key Balance-Sheet Movements • Clearing settlement funds rose 47.6% to RMB 34.62 billion owing to higher client balances. • Short-term financial bills payable nearly doubled to RMB 12.54 billion, and bonds payable increased 9.5% to RMB 79.32 billion, indicating active capital-markets financing. • Derivative financial assets and liabilities dropped 69.4% and 68.2%, respectively, reflecting reduced positions.

Corporate Development On 19 April 2026 the company disclosed a potential plan to acquire 100% of Shanghai Securities Co., Ltd. through an A-share issuance combined with cash payment. Trading in DFZQ’s A shares was suspended from 20 April for up to ten trading days to facilitate due-diligence and planning. The transaction remains at a preliminary stage and is subject to market conditions, regulatory approvals and final agreement terms.