Western Securities' revenue decreased by more than 10% year-on-year last year, with a decline in revenue from bulk commodity trading business.

Western Securities Co., Ltd. (hereinafter referred to as “Western Securities,” 002673) saw year-on-year revenue decline by more than 10% in 2025.

On the evening of April 1, Western Securities released its “2025 Annual Report.” The report shows that during the reporting period, the company achieved total operating revenue of RMB 5.99B, down 10.84% year on year; net profit attributable to shareholders of listed companies (hereinafter referred to as “net profit”) was RMB 1.75B, up 24.97% year on year; and net profit excluding non-recurring gains and losses was RMB 1.74B, up 25.36% year on year.

In 2025, Western Securities’ basic earnings per share were RMB 0.39 per share, up 25.13% year on year. By the end of 2025, the company’s total assets reached RMB 402M, up 26.78% from the end of 2024.

Regarding profit distribution, in its 2025 annual report, Western Securities stated that it plans to distribute cash dividends of RMB 0.90 per 10 shares to all shareholders (including tax), and to distribute cash dividends totaling RMB 536M (including tax). Combined with the company’s proposed profit distribution plan for 2025 and the interim profit distribution方案 implemented in 2025, the total cash dividends for the full year amount to RMB 1.22B (including tax), accounting for 30.54% of net profit attributable to shareholders of listed companies in the consolidated financial statements for this year. After distributing this cash dividend, the remaining undistributed profits will be carried over to the next fiscal year. In 2025, the company will not distribute bonus shares and will not convert capital reserve funds into share capital.

Meanwhile, looking at single-quarter operating performance, Western Securities’ 2025 revenue and net profit overall showed a trend of increasing quarter by quarter. Specifically, on the revenue side, the revenue for the four quarters was RMB 1.57B, RMB 1.55B, RMB 1.65B, and RMB 291M, respectively.

On the profitability side, for Western Securities from the first to the fourth quarters, net profits were RMB 494M, RMB 459M, RMB 510M, and RMB 1.06B, respectively, and the net profit in the fourth quarter was also the highest point for the year.

Regarding the decline in the company’s revenue last year, Western Securities stated in its 2025 annual report that the change was due to year-on-year decreases in revenue and costs from the bulk commodities trading business.

When it comes to each major operating business, Western Securities’ 2025 annual report also shows that during the reporting period, the operating revenue of its subsidiaries and other businesses decreased by 38.33% year on year.

Western Securities’ 2025 annual report shows that during the reporting period, performance at Western Futures faced pressure. Affected by changes in industry policies and the decline in market interest rates, Western Securities achieved operating revenue of RMB 964M (of which Western Yongtang achieved operating revenue of RMB 4.01B), with average daily client equity of RMB 1.88B, down 22.45% from the same period last year.

At the same time, in 2025, Western Securities’ businesses in proprietary investment and asset management also saw year-on-year declines in operating revenue, decreasing by 8.89% and 18.38%, respectively.

For the proprietary investment business, Western Securities stated in its 2025 annual report that during the reporting period, the company’s proprietary investment segment achieved operating revenue of RMB 137M.

For the asset management business, Western Securities noted that during the reporting period, the company’s asset management business achieved operating revenue of RMB 0.137 billion, with total assets under management of RMB 36.42B. Among them, the company manages 29 single-asset asset management plans, accounting for 20.26% of the scale; 179 collective asset management products, accounting for 49.81% of the scale; and 24 special asset management plans, accounting for 29.93% of the scale.

It is worth mentioning that in 2025, Western Securities completed the acquisition of a controlling stake in Guorong Securities Co., Ltd. (hereinafter referred to as “Guorong Securities”).

On August 15, 2025, the CSRC issued the reply titled “Reply on Approving Guorong Securities Co., Ltd. to Change Its Major Shareholders and Actual Controller, as well as Approving Guorong Fund Management Co., Ltd. and Beijing Capital Futures Co., Ltd. to Change Their Actual Controller.”

The CSRC said it approves Western Securities to become the major shareholder of Guorong Securities, and approves Shaanxi Investment Group Co., Ltd. to become the actual controller of Guorong Securities, Guorong Fund Management Co., Ltd., and Beijing Capital Futures Co., Ltd. It has no objection to Western Securities legally acquiring 1.15B shares of Guorong Securities (representing 64.5961% of the total shares of the company).

From the first disclosure to approval, the merger and acquisition deal of “Western + Guorong” took only 14 months. On June 21, 2024, Western Securities officially kicked off the acquisition of Guorong Securities. At that time, Western Securities’ announcement stated that the company planned to acquire the controlling stake in Guorong Securities by paying cash, based on the company’s own development needs.

According to the latest information on its official website, Western Securities was established in January 2001, registered in Xi’an, Shaanxi Province, with registered capital of RMB 4.47B, and its actual controller is Shaanxi Investment Group Co., Ltd. On May 3, 2012, the company’s initial public offering A-share stocks were listed on the Shenzhen Stock Exchange, making it the 19th listed securities firm in China nationwide.

In terms of branches, Western Securities has more than 100 securities business outlets and brokerage business subsidiaries across the country, and has three wholly owned subsidiaries: Western Futures Co., Ltd., Western Advantage Capital Investment Co., Ltd., and Western Securities Investment (Xi’an) Co., Ltd. The company holds a controlling interest in Western Lede Fund Management Co., Ltd.

As of the afternoon close on April 2, Western Securities’ stock closed at RMB 7.09 per share, down 2.74%.