Oriental Securities Co., Ltd. (DFZQ) reported a sharp earnings contraction for the third quarter ended 30 September 2026, as weaker performance in institutional & sales trading, investment banking and alternative investments cut into revenue.

Quarterly highlights • Operating income fell 44.54% year on year to RMB 2.61 billion. • Total profit declined 60.24% to RMB 0.87 billion. • Net profit attributable to shareholders dropped 47.78% to RMB 0.86 billion, translating into basic EPS of RMB 0.10 (-47.37%).

Nine-month performance • Operating income slipped 4.23% to RMB 12.17 billion. • Total profit edged down 0.97% to RMB 6.42 billion. • Net profit attributable to shareholders rose 5.25% to RMB 5.38 billion, lifting basic EPS to RMB 0.63 (+6.78%). • Net operating cash inflow surged 291.49% to RMB 7.03 billion, driven mainly by higher cash received from other operating activities.

Balance-sheet movements (vs. end-2025) • Total assets expanded 7.86% to RMB 525.12 billion, supported by a 35.72% rise in cash and bank balances to RMB 151.95 billion as customer deposits increased. • Derivative financial assets and liabilities contracted sharply (-75.07% and ‑71.52%, respectively), reflecting lower fair-value positions. • Financial assets acquired under resale agreements grew 145.77% to RMB 3.29 billion, while debt investments fell 71.28% to RMB 0.45 billion due to maturities. • Other liabilities climbed 43.51% to RMB 11.58 billion; undistributed profits advanced 34.18% to RMB 14.19 billion. • Shareholders’ equity reached RMB 86.55 billion, up 4.68%.

Capital adequacy and liquidity (parent company) • Net capital increased to RMB 61.65 billion; the risk coverage ratio improved to 453.84% from 372.89%. • Liquidity coverage ratio rose to 276.52% (173.04% at year-end 2025), and the net stable funding ratio stood at 156.33%. All risk control indicators complied with CSRC requirements.

Non-recurring items • Nine-month non-recurring gains totalled RMB 99.28 million, mainly government grants of RMB 140.87 million, partly offset by impairment and disposal losses.

Corporate actions DFZQ is proceeding with the planned acquisition of an 94.0% stake in Shanghai Securities Co., Ltd. via a share issue and cash payment. The transaction has secured approvals from shareholders, the Shanghai SASAC, Hong Kong’s Takeovers Executive (whitewash waiver) and the Shanghai Stock Exchange’s M&A Review Committee. Regulatory approvals from the China Securities Regulatory Commission and other authorities are pending.

Shareholder structure As of 30 September 2026, DFZQ had 187,456 ordinary shareholders. The largest holder, Shenergy (Group) Company Limited, owned 26.63% of shares, followed by HKSCC Nominees Limited with 12.09%.

Outlook While third-quarter earnings were pressured by weaker revenue streams, DFZQ’s year-to-date profit growth, strengthened liquidity and higher risk coverage provide a buffer as the company navigates market volatility and advances its strategic acquisition of Shanghai Securities.