In the mid-term performance, a "Davis Double Play" occurred, with Guolian Minsheng's net profit increasing by 11.85 times, focusing on allocations in non-ferrous metals and pharmaceuticals

What is called the "Davis Double Hit"?

Please see, on the evening of August 28, Guolian Minsheng released its semi-annual report for 2025.

The report shows that Guolian Minsheng achieved an operating income of 4.011 billion yuan in the first half of the year, a year-on-year increase of 269.40%; the net profit attributable to shareholders of the company was 1.127 billion yuan, a year-on-year increase of 1185.19%.

From the perspective of specific businesses, Guolian Minsheng's brokerage and wealth management business, as well as its securities investment business, achieved significant revenue growth, with a more pronounced year-on-year increase.

The semi-annual report revealed that Guolian Minsheng's business team, in the first half of 2025, used dividend value stock allocation as a shield and selected growth stocks as a spear, fully capturing the market's upward trend since the second quarter, focusing on allocations in industries such as non-ferrous metals, pharmaceuticals, and military industry, achieving high investment returns, with yields significantly outperforming the CSI 300 Index.

Such a large-scale strategic increase in positions is also rare in the current brokerage industry.

Net Profit Growth of 11 Times

During the reporting period, Guolian Minsheng achieved an operating income of 4.011 billion yuan, a year-on-year increase of 269.40%; the net profit attributable to shareholders of the company was 1.127 billion yuan, a year-on-year increase of 1185.19%.

As of June 30, 2025, Guolian Minsheng Group's total assets were 185.397 billion yuan, an increase of 90.72% compared to December 31, 2024; the equity attributable to shareholders of the company was 51.088 billion yuan, an increase of 174.90% compared to December 31, 2024.

Significant Contribution from Investment Income

In terms of operating income, the net income from fees and commissions, investment income, and fair value changes showed significant growth.

In particular, investment income and fair value changes amounted to 2.099 billion yuan, an increase of 1.722 billion yuan year-on-year, with a growth rate of 456.88%, mainly due to increased gains from the disposal of financial instruments and a decrease in fair value changes of derivative financial instruments.

The net income from fees and commissions was 1.861 billion yuan, an increase of 1.074 billion yuan year-on-year, with a growth rate of 136.38%, mainly due to increased income from the company's brokerage and investment banking businesses.

The net interest income was 27 million yuan, an increase of 116 million yuan year-on-year, mainly due to the expansion of business scale after the consolidation of newly added subsidiaries.

Significant Growth in Brokerage and Wealth Management Business, Investment Business

Looking at the main business by industry, the brokerage and wealth management business, as well as the securities investment business, achieved significant revenue growth, with a more pronounced year-on-year increase.

The brokerage and wealth management business achieved revenue of 1.195 billion yuan, a year-on-year increase of 215.76%; the investment banking business achieved revenue of 544 million yuan, a year-on-year increase of 214.94%; the asset management and investment business achieved revenue of 294 million yuan, a year-on-year decrease of 8.23%; the credit trading business achieved revenue of 300 million yuan, a year-on-year increase of 136.10%; the securities investment business achieved revenue of 1.687 billion yuan, a year-on-year increase of 14052.11%

Key Allocation in Non-ferrous Metals, Pharmaceuticals, and Military Industries

In terms of stock proprietary trading (equity securities investment business), Guolian Minsheng's semi-annual report shows that they adhere to the value investment philosophy, focusing on fundamental research while balancing risk and return to conduct business steadily.

In the first half of 2025, the securities investment business revolves around a barbell strategy, using dividend value stocks as a shield and selecting growth stocks as a spear, fully capturing the market's upward trend since the second quarter, with a key allocation in non-ferrous metals, pharmaceuticals, and military industries, achieving high investment returns that significantly outperformed the CSI 300 Index.

In the fixed income business, the company consistently upholds a prudent investment approach and a client-centric business philosophy. In investment trading, they optimize the portfolio structure and strictly control credit risk to achieve stable returns; as bond yields fluctuate at low levels, they increase investment in market-making trading business, providing liquidity services to clients while achieving stable returns.

In the equity derivatives business, the company continuously deepens product innovation to meet clients' investment and allocation needs in the domestic market. The quantitative investment business adheres to an absolute return positioning, strengthens risk control, and focuses on building investment research capabilities and strategy iteration. The market-making business focuses on fulfilling social responsibility, actively applying for qualifications in stock options market-making and listed securities market-making trading, providing high-quality liquidity to the market.

New Customer Count of 117,600

In terms of brokerage and wealth management business, during the reporting period, Guolian Minsheng continued to promote the transformation of buy-side investment advisory into broad wealth management, constructing a tiered service system and business model for different customer categories.

For retail clients, they utilize tools such as fund advisory to determine strategy combinations based on market trends, guiding long-term asset allocation; for high-net-worth clients, they shift the sales model to create diversified customized combination strategies, enhancing asset resilience against volatility and improving overall return levels.

At the same time, they expand traffic entry points by leveraging new trading models and intelligent trading service tools; for institutional clients, from the perspective of meeting their comprehensive needs, they optimize clients' risk-return levels through fund advisory, institutional wealth management platforms, and other means with diversified strategies.

During the reporting period, the client scale continued to grow, with a new customer count of 117,600, bringing the total number of clients to 3.4559 million; the company's financial product sales scale (excluding cash management products) reached 87.02 billion yuan, with a financial product balance of 31.436 billion yuan at the end of the period. As of the end of the reporting period, the fund advisory balance was 9.708 billion yuan