On the evening of April 28, CICC disclosed its first-quarter report. The data shows that the renowned securities firm achieved revenue of RMB 5.721 billion in Q1 2025, a year-on-year increase of 47.69%, with net profit reaching RMB 2.042 billion, up 64.85% YoY. CICC attributed the revenue growth to increased net gains from financial instrument investments and higher net fee and commission income.
Brokerage business rose by 50% YoY. According to the report, CICC’s net brokerage commission income surged over 56% YoY, from RMB 831 million in the same period last year to RMB 1.298 billion. Net asset management fee income for Q1 was RMB 308 million, up 15.22% YoY. In contrast, CICC’s investment banking business remained “weak,” declining by 10 percentage points YoY. Investment returns were a highlight. CICC reported investment income and fair value change gains of RMB 3.407 billion for the period, compared to RMB 1.847 billion in the same period last year, marking an 84.44% YoY increase. This was primarily due to higher net gains from financial instruments measured at fair value. The firm’s balance sheet revealed that its trading financial assets reached RMB 285.434 billion by the end of Q1. Derivatives performance dipped. CICC’s Q1 foreign exchange gains fell 56% YoY, which the report attributed to fluctuations in gains/losses from foreign exchange derivative transactions used to hedge foreign currency exposure. Typically, companies use derivatives like futures and options to mitigate currency risks. This suggests CICC’s overseas operations saw some setbacks in Q1. Employee costs rose quietly. Notably, CICC’s business and management expenses increased 37% YoY in Q1, driven by higher employee costs as the group’s operating performance improved compared to 2024. A review of the 2024 annual report showed business and management expenses at RMB 14.3 billion, down RMB 1.521 billion (9.61%) from 2023, reflecting reduced employee costs amid weaker performance. Headcount also declined by 677 by the end of 2024. Non-operating income soared 5200%. CICC’s Q1 non-operating income reached RMB 32.09 million, a staggering 5200% YoY increase.CICC explained that the increase was attributed to gains unrelated to daily business operations, with no further details provided.
Additionally, Q1 non-operating expenses surged by 688%, primarily due to increased provisions for contingent liabilities from pending litigation. Risk Warning and Disclaimer: Market investments carry risks. This article does not constitute personal investment advice nor considers individual users’ specific investment objectives, financial situations, or needs. Users should evaluate whether any opinions, views, or conclusions herein align with their particular circumstances. Investment decisions based on this content are made at one’s own risk.
