Xin Lang Cai Jing·2025-12-25 03:17Core Viewpoint - In 2025, China Merchants Securities is undergoing a dual transformation of "downsizing" and "business expansion" amid increasing differentiation in the brokerage industry, with a focus on optimizing personnel structure and enhancing international business capabilities [3][4][10]. Group 1: Financial Performance - In the first three quarters of 2025, the company achieved operating revenue of 18.244 billion yuan, a year-on-year increase of 27.8%, and a net profit attributable to shareholders of 8.871 billion yuan, up 24.1% year-on-year [3][10]. - Despite these growth figures, the performance is relatively weaker compared to other leading brokers, many of which reported revenue and profit growth exceeding 30% [3][10]. Group 2: Personnel and Compensation - As of June 30, 2025, the company reduced its workforce by 1,292 employees, bringing the total to 12,169, which is a significant reduction among top brokers [4][11]. - The total salary expenditure for employees was 2.631 billion yuan, a year-on-year increase of 4.15%, resulting in an approximate average monthly salary of 36,000 yuan per remaining employee [4][11]. - Compensation for key management personnel decreased by 36.43% year-on-year to 4.9819 million yuan, reflecting a trend of declining salaries amid performance pressures [4][11]. Group 3: Business Expansion and Strategy - The company is accelerating its business expansion, with Chairman Huo Da taking on multiple roles to enhance technology and international collaboration [5][12]. - The board approved a capital increase of up to 9 billion Hong Kong dollars for its wholly-owned subsidiary, with 4 billion Hong Kong dollars allocated to its Hong Kong operations, indicating a strategic focus on international business [5][12]. - The international business is seen as a key growth driver, with the company aiming to capture market share in overseas markets, particularly in Hong Kong and Southeast Asia [6][13]. Group 4: Industry Context and Challenges - The brokerage industry is experiencing a significant shift towards wealth management, with a net reduction of 7,330 employees across the sector in the first half of 2025, highlighting the transition from traditional brokerage services [4][11]. - The competitive landscape is intensifying, with leading firms like CITIC Securities and Guotai Junan dominating the market, as the top ten brokers account for 70% of the industry's net profits [6][13]. - The company's strategy of "reducing staff while enhancing efficiency" aligns with industry trends, as it reallocates resources towards technology and international business [6][13].