Investment Rating - The report maintains an "Outperform the Market" rating for the company [3][5][23] Core Views - The integration of Guolian and Minsheng Securities is showing initial results, with significant increases in revenue and net profit for the first half of 2025 [1][3] - The company has adjusted its profit forecasts for 2025-2027 upwards by 85.8%, 81.8%, and 71.1% respectively, anticipating net profits of 1.81 billion, 2.00 billion, and 2.14 billion yuan [3][19] - The company is expected to benefit from the synergistic effects of the integration, enhancing its brokerage network, investment banking capabilities, and capital base [3][19] Financial Performance Summary - In the first half of 2025, the company achieved operating revenue of 4.011 billion yuan, a year-on-year increase of 47.4%, and a net profit attributable to shareholders of 1.127 billion yuan, up 166.9% [1] - The company's self-operated business revenue reached 2.097 billion yuan, reflecting a 94.3% year-on-year growth [1] - The brokerage business generated revenue of 905 million yuan, a 22.6% increase year-on-year, while investment banking revenue decreased by 9.6% to 531 million yuan [2] Financial Projections - The company forecasts operating revenues of 10.007 billion yuan, 11.087 billion yuan, and 11.838 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 73.9%, 10.8%, and 6.8% [19][20] - The projected net profits for the same years are 1.806 billion yuan, 2.003 billion yuan, and 2.140 billion yuan, with growth rates of 89.7%, 10.9%, and 6.8% [19][20] - Key financial ratios include a projected PE of 38.5, 34.7, and 32.5 for 2025, 2026, and 2027, and a PB of 2.1, 2.0, and 1.9 for the same years [3][20]

Meeting Details - The fifth session of the supervisory board of Guolian Minsheng Securities Co., Ltd. was held on August 28, 2025, in Wuxi, combining on-site and communication methods [1] - All five supervisors attended the meeting, with two participating via communication [1] - The meeting was chaired by the chairman of the supervisory board, Xue Chunfang, and complied with relevant laws and regulations [1] Resolutions Passed - The supervisory board approved the 2025 semi-annual report with a unanimous vote of 5 in favor, 0 against, and 0 abstentions [2] - The board also approved the comprehensive risk management report for the mid-year with the same voting results [2] - A special report on the storage and actual use of the funds raised in the first half of 2025 was also approved unanimously [2]

Core Viewpoint - The report highlights significant growth in total assets and net income for Guolian Minsheng Securities Co., Ltd. in the first half of 2025, following the acquisition of Minsheng Securities, which has been consolidated into the company's financials [1][7]. Financial Performance - Total assets reached approximately 185.40 billion RMB, an increase of 90.72% compared to the previous year [1]. - Operating income for the period was approximately 4.01 billion RMB, reflecting a substantial increase of 269.40% year-on-year [1]. - Net profit attributable to shareholders was approximately 1.12 billion RMB, marking a significant rise of 1,355.70% compared to the same period last year [1]. - The net profit after deducting non-recurring gains and losses was approximately 1.12 billion RMB, also showing a substantial increase [1]. Shareholder Information - As of the end of the reporting period, the total number of shareholders was 94,627 [2]. - The largest shareholder, Wuxi Guolian Development (Group) Co., Ltd., holds 23.86% of the shares directly and an additional 14.65% indirectly through controlled entities, totaling 38.52% [2]. Debt Issuance - The company has issued various bonds aimed at professional investors, including a bond with a 20% interest rate and a maturity of three years [4][6]. - The company plans to issue additional bonds in 2025, with varying interest rates and maturities [6][7]. Important Events - The company completed the acquisition of control over Minsheng Securities through the issuance of A-shares, which has been included in the consolidated financial statements [7].

Group 1 - The board of directors of Guolian Minsheng Securities held its 28th meeting on August 14, 2025, with all 9 directors present, and the meeting was conducted in accordance with legal and regulatory requirements [1][2] - The board approved the 2025 semi-annual report with a unanimous vote of 9 in favor, 0 against, and 0 abstentions [1][2] - The board also approved the comprehensive risk management report for the mid-year with the same voting results [2] Group 2 - The board approved a special report on the use of raised funds for the first half of 2025, again with unanimous support [2] - The board agreed to revise the basic compliance management system, with the proposal having been pre-reviewed by the risk control committee [2] - The establishment of the Guolian Tongzhi Technology Asset Equity Investment Fund and related transactions was approved, with 6 votes in favor and 3 directors abstaining from the vote due to conflicts of interest [3]

Core Viewpoint - The company plans to establish the Guolian Tongzhi Fund in collaboration with its affiliate, Guolian Life Insurance, with a total fund size of RMB 12.2 billion, aimed at private equity investments in smart technology and new productivity sectors [1][5][12] Summary by Sections Transaction Overview - Guolian Tongbao Capital Investment Co., Ltd., a wholly-owned subsidiary of the company, will contribute RMB 480 million to the fund, while Guolian Life Insurance will contribute RMB 740 million, making it a limited partner [1][5] - The fund will focus on private equity investments in the fields of new productivity and smart technology, expanding the company's private equity business management scale and generating investment returns and management fee income [1][5][12] Related Party Information - Guolian Life Insurance is a company controlled by Guolian Group, which holds a 33.33% stake in it, and has a historical connection with the company through board member relationships [2][4] - As of June 30, 2025, Guolian Life Insurance reported total assets of RMB 388.62 billion and a net asset of RMB 39.04 billion, with a net loss of RMB 2.36 billion for the first half of 2025 [4][5] Fund Structure and Management - The fund will be structured as a limited partnership, with Guolian Tongbao as the general partner and fund manager, and Guolian Life as the limited partner [5][6] - The fund's management fee is set at 0.5% per year of the total capital contributions during the investment period, which lasts for three years, followed by a four-year exit period [6][7] Investment Strategy - The fund aims to invest primarily in unlisted companies within China, focusing on direct or indirect equity investments to achieve capital appreciation [9][10] - An investment decision-making committee and an advisory committee will be established to oversee investment activities [9][10] Impact on the Company - The establishment of the Guolian Tongzhi Fund is expected to enhance the company's private equity asset management capabilities, increase brand recognition, and provide long-term investment returns through collaboration with insurance funds [11][12]

Fundraising Overview - The company raised a total of RMB 1,999,999,995.07 through the issuance of 208,550,573 shares at a price of RMB 9.59 per share, with a net amount of RMB 1,970,895,307.90 after deducting issuance costs [1][7] - The funds were deposited into a designated account on February 26, 2025, and verified by an accounting firm [1] Fund Usage Status - As of June 30, 2025, the raised funds had not been utilized, with a remaining balance of RMB 1,979,332,538.10 in the fundraising account [2] - The company has established a fundraising management system to ensure the proper use and supervision of the raised funds [2] Fund Management Agreements - The company signed tripartite and quadripartite agreements with various banks to ensure the secure storage and management of the raised funds [3] Fund Allocation and Investment - There have been no changes in the investment projects funded by the raised capital as of June 30, 2025 [5] - The company has not used idle funds for temporary working capital, cash management, or investment in related products [5] Compliance and Disclosure - The company confirms that the disclosure of the fundraising usage aligns with the actual usage, with no issues of timeliness or accuracy in the reported information [5]

Core Viewpoint - The first half report of Guolian Minsheng after the merger shows significant performance growth, with a substantial increase in revenue and net profit compared to the previous year [1][5][22]. Financial Performance - In the first half of 2025, the company achieved an operating income of 4.01 billion yuan, a year-on-year increase of 269.40%, and a net profit attributable to shareholders of 1.13 billion yuan, up 1185% [5][6]. - Total assets reached 185.40 billion yuan, growing by 90.72% from the end of the previous year, while net assets attributable to shareholders increased by 174.90% to 51.09 billion yuan [2][5]. Business Segments - The company reported significant growth across various business segments, with brokerage and wealth management, investment banking, credit trading, and securities investment all exceeding 100% year-on-year growth, while asset management and investment business saw a decline [5][6]. - Securities investment emerged as the largest revenue contributor, generating 1.69 billion yuan, a staggering increase of 14,052.11% year-on-year, accounting for over 40% of total revenue [6][7]. Brokerage and Wealth Management - Brokerage business revenue reached 900 million yuan, up 223.8%, representing 22.6% of total revenue excluding other business income [6][7]. - The total number of clients increased by 117,600, bringing the cumulative total to 3.46 million, with financial product sales reaching 870.20 billion yuan [7][19]. Investment Banking - The investment banking segment saw a revenue increase of 214.94% to 544 million yuan, with notable performance in equity financing, completing six projects with a total underwriting amount of 2.62 billion yuan [10][11]. - The company ranked 8th in the number of equity underwriting cases and 5th in underwriting revenue within the industry [11]. Asset Management - The asset management and investment business reported a revenue decline, with income of 294 million yuan, down 8.23% year-on-year [15][16]. - The company’s asset management scale reached 2.965 trillion yuan, a year-on-year increase of 137.5% [15][18]. Private Equity Investment - The private equity investment business showed weakness, with efforts to establish new funds and complete fundraising for nine funds, totaling 26.89 billion yuan in subscribed capital [19][20]. - The establishment of the Guolian Tongzhi Fund aims to enhance the private equity business and expand management scale [20]. Strategic Integration - The merger of Guolian and Minsheng is expected to enhance overall competitiveness, with initial signs of successful integration reflected in the performance results [22]. - The company is in a strategic expansion phase, focusing on enhancing its investment banking, research, and asset management capabilities [22].

Core Viewpoint - Despite the overall weaker performance of Hong Kong stocks compared to A-shares since the second quarter, the company remains optimistic about the current market trend in Hong Kong, asserting that the AH premium is not necessarily bound for "mean reversion" in the short term [1][4]. Market Dynamics - The influx of "new economy" companies from A-shares to Hong Kong is expected to enrich the distribution of listed companies in both markets, broadening the investment options for funds [1][4]. - The anticipated interest rate cuts by the Federal Reserve, along with the stabilization of the Hong Kong dollar, may alleviate the expectations of liquidity tightening in the Hong Kong market [1][4]. - There is still room for further allocation of southbound funds, which have significantly flowed into the market this year [1][4]. AH Premium Analysis - The continuous decline of the Hang Seng AH Premium Index since the beginning of the year has led some investors to use it as a timing indicator for the two markets. However, the company argues that using the AH premium index to represent the relative performance of the two markets may be misleading [2]. - The limited number of companies and market capitalization of AH-listed firms, which are primarily in cyclical and defensive sectors, contributes to this discrepancy [2]. - The historical average of the AH premium index has fluctuated between 120-130 since the launch of the Shanghai-Hong Kong Stock Connect, indicating that the current levels still have room for movement [2]. Liquidity Factors - The core determinant of the AH premium level is the liquidity difference between the two markets, with the Hong Kong market having a more developed short-selling mechanism and higher trading costs impacting investor returns [2]. - The increasing proportion of southbound funds is expected to compress the discount space of Hong Kong stocks, as institutional investors account for over 60% of trading volume [2]. Profitability and Dividend Yield - The relative growth rates of profits and changes in dividend yields between the two markets are crucial short-term factors influencing the AH premium [3]. - When the net profit improvement of Chinese companies listed in Hong Kong exceeds that of A-shares, the AH premium tends to converge [3]. - High dividend yields, particularly those exceeding 4%, are associated with a noticeable decline in the AH premium, as they help offset liquidity discounts [3].

Investment Rating - The investment rating for the company is "Buy" (maintained) for both A and H shares [7]. Core Views - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 4.011 billion RMB, up 269% year-on-year, and net profit attributable to shareholders at 1.127 billion RMB, up 1185% year-on-year [1]. - The core driver of profit growth is attributed to a substantial increase in investment income, which reached 2.097 billion RMB, a year-on-year increase of 459% [2]. - The acquisition of Minsheng Securities has strengthened the company's investment banking capabilities and expanded its wealth management client base [3]. Summary by Sections Financial Performance - The company achieved a net investment banking income of 531 million RMB, a year-on-year increase of 214% [3]. - The underwriting amount for equity financing was 2.62 billion RMB, with IPO underwriting amounting to 1.52 billion RMB, significantly up from 295 million RMB in the same period last year [3]. - The asset management net income was 357 million RMB, a year-on-year increase of 14% [4]. Investment Forecast and Valuation - The earnings per share (EPS) for 2025-2027 are projected to be 0.45, 0.50, and 0.58 RMB respectively, with significant upward adjustments due to the acquisition of Minsheng Securities [5]. - The target price is set at 16.56 RMB for A shares and 9.07 HKD for H shares, reflecting a price-to-book (PB) ratio of 1.8 for A shares and 0.9 for H shares [5]. - The company is expected to maintain a strong market position with a projected net profit of 2.561 billion RMB in 2025, representing a year-on-year increase of 544.3% [11].

Core Viewpoint - Guolian Minsheng reported significant growth in revenue and net profit for the first half of the year, indicating strong performance and strategic initiatives in the financial sector [1][3]. Financial Performance - In the first half of the year, Guolian Minsheng achieved operating revenue of 4.011 billion yuan, a year-on-year increase of 269.40% [3]. - The net profit attributable to shareholders reached 1.127 billion yuan, reflecting a remarkable year-on-year growth of 1185.19% [3]. - Basic earnings per share were reported at 0.2 yuan [3]. - Total assets as of June 30, 2025, amounted to 185.397 billion yuan, up 90.72% from the end of 2024 [3]. - Shareholder equity increased to 51.088 billion yuan, a growth of 174.90% compared to the end of 2024 [3]. Business Segments - The securities investment business became the largest revenue contributor, generating 1.687 billion yuan, a staggering increase of 14052.11% year-on-year [3]. - Brokerage and wealth management, as well as investment banking businesses, both saw over 200% growth, with revenues of 1.195 billion yuan and 544 million yuan, respectively [3]. - Credit trading business revenue reached 300 million yuan, up 136.10% [3]. - Asset management and investment business experienced a decline, with revenue of 294 million yuan, down 8.23% year-on-year [3]. Customer Growth and Financial Products - The company added 117,600 new clients in the first half of the year, bringing the total client base to 3.4559 million [4]. - The sales scale of financial products (excluding cash management products) reached 87.02 billion yuan, with a financial product retention amount of 31.436 billion yuan at the end of the period [4]. - The scale of fund advisory business continued to grow, with a retained scale of 9.708 billion yuan by the end of the reporting period [4]. New Fund Establishment - Guolian Minsheng announced plans to establish the Guolian Tongzhi Fund in partnership with Guolian Life Insurance, with a total fund size of 1.22 billion yuan [5][6]. - Guolian Tongbao, a wholly-owned subsidiary, will contribute 480 million yuan, accounting for 39.34% of the fund, while Guolian Life will contribute 740 million yuan, representing 60.66% [6]. - The fund will focus on private equity investments in new productivity and smart technology sectors, aiming to enhance the company's private equity business management scale and investment returns [6].