Celebrating its 25th anniversary, with Guorong Securities included in its consolidated financial statements, Western Securities is making its first performance debut! Assets have surpassed the 100 billion mark.

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Celebrating its 25th anniversary, Western Securities has delivered a report card on a key development milestone. On April 1st, the company disclosed its 2025 annual report, achieving operating revenue of 5.99B yuan, a decrease of 10.84% year-over-year; net profit attributable to shareholders of the listed company was 1.75B yuan, up 24.97% year-over-year. As the first annual report after consolidation, Western Securities’ 2025 performance preliminarily demonstrates the effectiveness of integration and operational resilience.

On one hand, revenue from wealth credit and investment banking both saw significant growth, proprietary investments continued to serve as a “ballast stone,” various business segments worked in synergy, and merger and acquisition integration efficiency was fully unleashed; on the other hand, six core advantages have laid a solid foundation for the company’s long-term steady development, especially the strategic support continuously provided by the company’s controlling shareholder and actual controller, Shaanxi Investment Group.

These twenty-five years have been a journey of Western Securities actively seeking change and continuously climbing amid a stable and improving development trend. From its registration in 2001, to listing on the Shenzhen Stock Exchange in 2012 as the 19th listed securities firm, and to completing the acquisition of Guorong Securities’ controlling stake in 2025, over 25 years, the company’s total assets grew from less than 1 billion yuan at inception to over 120B yuan today (2025 total assets: 121.66B yuan, up 26.78%), with net assets surpassing 30 billion yuan. It has become a nationally competitive and regionally prominent comprehensive listed securities firm.

Xu Zhaohui, Party Secretary and Chairman of the company, once mentioned that the twenty-five years of Western Securities is a twenty-five-year journey of resonating with China’s capital market and growing hand in hand. “This trust is our most precious asset and our inexhaustible motivation to move forward bravely.” She candidly said that it is this heavy support that has enabled the enterprise to steadily advance amid market turbulence, continuously enhancing asset scale, profitability, and brand reputation. In January 2026, Western Securities officially launched a new brand image, “Western Bull, as Red as Fire,” further clarifying the development philosophy of strategic, brand, and cultural synergy empowerment.

Twenty-five years is just a milestone; for a securities firm, opportunities are still abundant. The “14th Five-Year Plan” first incorporated the construction of a strong financial nation into its content, making the period a strategic opportunity for comprehensive market reform deepening and accelerating the building of a first-class investment bank. The industry is paying more attention to how Western Securities will respond. Regarding future development and strategies, the annual report also reveals four main measures.

First, the company will continue to deepen its industry transformation focusing on “specializing in core businesses, improving governance, and developing with a clear focus,” promoting the implementation of the “Five Major Articles” of financial services; second, it will strengthen financial services driven by technological and industrial innovation, enhancing comprehensive financial service capabilities; third, the company will persist in digital transformation, strengthening digital intelligence empowerment, and improving operational efficiency and service levels; fourth, through mergers, acquisitions, and international expansion, it will further enhance market position and profitability.

Worth noting is that the dividend plan announced alongside the performance also attracted investor attention—how will the returns be made? How strong will they be? The answers are in place. The company’s profit distribution plan for 2025 proposes a cash dividend of 0.90 yuan per 10 shares (tax included), with a proposed cash dividend payout of 402 million yuan (tax included). Combining this with the mid-term profit distribution plan already implemented in 2025, the total cash dividends for the year amount to 536 million yuan, accounting for 30.54% of the net profit attributable to shareholders in the consolidated financial statements for the year.

Highlight 1: Wealth Credit Segment Becomes the Company’s “Stabilizer”

In 2025, Western Securities’ five major business segments worked together, with the “Big Strategy - Small Units” business model iterating continuously, the integrated financial service chain constantly improving, and core businesses showing structural growth.

Wealth Management: Revenue reached 1.28B yuan, up 30.77%; operating costs were 726 million yuan, with a gross margin of 43.13%.

Proprietary Investment: Revenue was 1.88B yuan, with a gross margin of 89.29%, mainly benefiting from increased gains on financial instrument disposals.

Investment Banking: Revenue was 390 million yuan, up 42.09%; completed 174 bond underwritings and issuances, with an underwriting scale of 63.56B yuan.

Credit Business: Revenue was 569 million yuan, with a gross margin of 91.75%; margin financing and securities lending balance was 12.32B yuan, up 24.39%.

Asset Management: Revenue was 137 million yuan, gross margin 3.49%; management scale was 36.42 billion yuan, with mutual fund products accounting for 49.81%.

Under the combined scope of wealth management and credit business, the full-year revenue was 1.85B yuan, up 25.12%, becoming the company’s “stabilizer.” Western Securities states that the company’s wealth credit segment adheres to “investor-centered” principles, practicing a strategy centered on “Research-Investment-Consulting,” actively developing ETF business, enhancing buy-side advisory capabilities, deepening investor protection efforts, and continuously expanding brand influence. Meanwhile, it explores business innovation and technological empowerment, continuously broadening income sources and solidifying the business foundation.

Among these, the 30.77% revenue growth in wealth management has become one of the core engines driving overall revenue increase, reflecting significant achievements in customer service, product layout, and channel development within the wealth management business line. Customer asset deposits and revenue-generating capabilities continue to improve.

Looking back at 2025, leveraging online and offline channels and nationwide branch deployment, the company expanded inclusive finance clients, opening over 200,000 new accounts, a 72% increase. Institutional client service capabilities were continuously strengthened, with algorithmic trading and private equity ecosystem services implemented, and institutional assets exceeded 1 trillion yuan, up 26%.

Additionally, the product and service matrix was further refined, forming three major brand service systems: “Smart Choice 50” stock research, “Preferred 30” asset allocation, and “E-Select 50” ETF advisory. The scale of publicly offered funds increased by 6.16% year-over-year, agency distribution income rose 28.26%, and the scale of equity ETFs grew 24.42%, with buy-side advisory capabilities continuously enhanced.

In the credit sector, revenue grew 14.06% year-over-year, maintaining steady expansion, reflecting the company’s balanced risk management and business scale growth, while steadily contributing stable cash flow.

The annual report shows that by the end of 2025, the balance of margin financing and securities lending was 12.32B yuan, up 24.39%; the initial amount of stock pledge repurchase transactions was 2.97B yuan, with 1.7B yuan from proprietary funds and 1.28B yuan from asset management products.

Notably, this year, Western Securities obtained approval from the China Securities Regulatory Commission for the pilot qualification to optimize account management functions, further improving credit service capabilities and qualifications. The company used fintech tools to improve service efficiency, refined operations to enhance customer stickiness, and balanced business scale with risk control.

Highlight 2: Investment Banking Achieves Remarkable Growth, Revenue Surges Over 40%

The investment banking segment’s revenue increased by 42.09% year-over-year, the highest among all segments, demonstrating significant enhancement in project reserves, underwriting, and market competitiveness. As a core pillar of the securities firm, the value of investment banking is further highlighted, attracting considerable attention.

In equity business, the company reported nine new equity projects filed, one refinancing, three M&A projects; two IPO projects on the Beijing Stock Exchange were under exclusive sponsorship and underwriting approval. At year-end, nine equity projects were under review, with 15 IPO projects in guidance. The company actively participated in provincial enterprise listings, formulating tailored capital operation plans to assist state-owned enterprise asset revitalization and industrial upgrades.

In bonds, the company achieved breakthroughs, obtaining approval as a primary underwriter in the interbank market, expanding growth space. A total of 174 bonds were underwritten, with a scale of 63.56B yuan, up 61.11% and 14.24% respectively, maintaining the top regional market share in Shaanxi Province.

Innovative products saw notable results, with 20 tech innovation bonds, 2 green bonds, 3 low-carbon transition bonds, 2 small and micro enterprise support bonds, 2 “Belt and Road” bonds, and 1 rural revitalization bond issued throughout the year. The first nationwide tourism industry linked bonds “25 Shaanxi Travel Y1,” Shaanxi’s first high-growth industry bond, and the Northwest’s first corporate CMBS were successfully issued, continuously enhancing service to the real economy.

Highlight 3: Proprietary Trading Continues to Play the “Ballast Stone” Role, Maxing Out Contribution

The proprietary investment segment achieved revenue of 1.88B yuan, continuing to serve as a “ballast stone” for income, another highlight of the annual report.

In 2025, the company’s equity business focused on high-dividend assets, improving OCI strategies, target pool construction, and position-building plans, increasing portfolio allocation ratios to gain both dividend and capital gains. Fixed income operations responded to declining interest rates by expanding the “Fixed Income+” strategy, increasing allocations to convertible bonds, exchangeable bonds, REITs, and overseas bonds, strengthening rate bond trading, and maintaining a prudent investment style. Derivatives trading and market-making activities balanced functionality and profitability, leveraging licenses for market makers and OTC traders to enhance client services and proprietary investments, with strict market risk controls.

In asset management, the company adhered to a “dual-drive” model of “investment asset management + investment banking asset management,” targeting absolute returns with pure debt products, deepening multi-asset and multi-strategy research, and continuously enriching product lines; focusing on key clients for investment banking asset management, promoting asset revitalization and project implementation, and expanding into inclusive and green finance sectors. Channel development proved effective, with product issuance and scale increasing significantly, and core bank distribution channels growing nearly 50% year-over-year.

Research and consulting strengthened market-oriented capabilities, building a “government-research-enterprise” collaborative ecosystem. The company currently has 31 sell-side research teams covering 26 industries, with a 90% industry coverage rate; published 395 in-depth reports and 2,110 routine reports throughout the year. It hosted AI industry chain training, DeepSeek forums, multiple regional listed company exchanges, and annual strategy meetings, boosting research brand influence. Leading analysts in consumer, machinery, and military industries were introduced to strengthen research capacity. The自主研发的智能决策系统VSignals融合AI技术，开发股票分析、财报总结、区域经济等功能，向多业务线输出研究能力。产业研究院聚焦新质生产力，全年完成研究课题68项，7项获省部级领导批示，多项成果发表于专业期刊，为地方经济与产业布局提供支撑。

Highlight 4: Clarifying Six Core Advantages to Promote Practical Progress

Currently, competition within the securities industry remains highly homogeneous, with business concentration steadily increasing, digital management reforms progressing steadily, and regulatory systems becoming more完善。Top-tier securities firms’ advantages in assets, market share, brand effect, technological reserves, and talent teams are increasingly突出，中小券商在弯道超车方面面临更大压力与挑战。在新时期、新形势和新发展要求的推动下，证券公司正逐步迈向价值竞争之路，系统性提升功能作用将引领行业未来发展方向。

It is evident that the strategic goal of building a strong financial institution through horizontal integration has been actively promoted. The “big and strong” combined with “small and refined” development will inject new connotations into the industry, accelerating the application of AI large models and other intelligent technologies, becoming a new era exploration for high-quality industry development.

Against this backdrop, Western Securities has outlined six core advantages in its annual report to ensure long-term growth.

First, shareholder strength support. The controlling shareholder, Shaanxi Investment Group, is a pilot unit for state-owned capital investment and operation reform under the SASAC of Shaanxi Province, providing strategic support based on the “industry-finance integration” policy. The financial sector is a key component of Shaanxi Investment Group’s “dual-engine” strategy.

Second, efficient governance and decision-making. Led by Party building, the company has improved its corporate governance structure and market-oriented mechanisms, with clear decision-making, execution, and supervision responsibilities, and standardized procedures, enabling rapid response to market changes.

Third, regional resource advantages. Long-term deep engagement in Western markets makes it a core institution in Shaanxi’s financial sector, leveraging regional advantages to serve national strategies and meet corporate financing and residents’ wealth management needs.

Fourth, comprehensive financial service platform. Equipped with full business licenses and high-efficiency coordination, providing one-stop, cross-market financial services for individuals, enterprises, and institutions.

Fifth, clear strategy and assessment. Establishing the goal of “focusing on the West, serving the whole country, and building a first-class comprehensive investment bank,” implementing market-oriented evaluation and accountability mechanisms to improve operational quality and efficiency.

Sixth, compliance, risk control, and system stability. Building a comprehensive compliance and risk management system aligned with business development; advancing digital IT strategies to ensure the security and stable operation of information systems, laying a solid foundation for business activities.

Western Securities states that in the future, it will unwaveringly follow the path of Chinese-style financial development, thoroughly implement the spirit of the 20th National Congress and subsequent plenary sessions, further implement the Central Economic Work Conference and the new “Guo Jiu Tiao” policies, strive to write new “Five Articles” of finance, focus on business transformation, solidify M&A integration, expand overseas business, continuously enhance comprehensive financial services, and fully leverage functions as a “service provider” of direct financing, “gatekeeper” of capital markets, and “wealth manager” of society. Through cross-business collaboration and integrated domestic and international deployment, it aims to achieve sustained growth in operational performance and steady qualitative improvement, accelerating the company’s high-quality development.