Ten years of chasing dreams, eight revisions of the prospectus! Is Dongguan Securities' IPO finally approaching the decisive moment?

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Source: Expert Securities

Eighth update: Highlights and concerns in Dongguan Securities’ IPO prospectus

After half a year, Dongguan Securities has updated its prospectus for the eighth time. This IPO candidate, with over a decade of long-distance running, includes its 2025 performance forecast.

Performance surge

In 2025, Dongguan Securities’ operating income reached 3.39B yuan, up 23.01% year-over-year; net profit attributable to shareholders was 1.25B yuan, up 34.82%. Profit growth significantly outpaced revenue growth, with steady improvement in profit quality.

Looking at main business segments, performance growth shows a clear “hot and cold” divergence: brokerage fee net income was 1.75B yuan, up 43.66%. Net interest income from credit business was 857 million yuan, up 16.20%. Proprietary trading revenue was 488 million yuan, up 14.53%, mainly due to reduced fair value losses. Investment banking net income was 127 million yuan, down 38.19%. Asset management net income was 43 million yuan, down 47.50%.

Amid impressive growth, Dongguan Securities’ business structure issues become more apparent. On one side, traditional channels and capital intermediary businesses are booming; on the other, high-value-added businesses like investment banking and asset management are under pressure, maintaining a reliance on “flying by the seat of their pants.”

Local characteristics

As a comprehensive national securities firm rooted in the core area of the Guangdong-Hong Kong-Macao Greater Bay Area, Dongguan Securities’ “regional gene” is inherently strong.

By the end of 2025, Dongguan Securities had established 101 securities outlets nationwide, with 30 located in Dongguan City, firmly holding its home turf.

Despite ongoing optimization of nationwide layout and reduced regional dependence, local revenue still accounts for a high proportion. From 2023 to 2025, brokerage revenue from Dongguan outlets was 57.46%, 56.15%, and 54.66%, respectively—slightly declining over three years but still over half.

Regarding the “guardrail” of commission rates, Dongguan Securities faces challenges. In 2023, 2024, and 2025, the industry average commission rates were 0.205‰, 0.197‰, and 0.164‰. The company’s average commission rates for those years were 0.223‰, 0.225‰, and 0.197‰, respectively—higher than the industry average but showing a downward trend overall.

State-owned capital increase

Alongside performance growth, Dongguan Securities’ ownership structure has undergone a decisive change.

In June 2025, the CSRC approved Dongguan Securities’ major shareholder change. The actual controlling stake held by Dongguan State-owned Assets Supervision and Administration Commission increased to 75.40%.

Currently, Dongguan Investment Holding Group Co., Ltd. (referred to as: Investment Holding Group) holds 32.90%; Dongguan Development Holding Co., Ltd. (referred to as: Dongguan Holding) holds 27.10%; with a 20% stake. Dongguan Capital Investment Co., Ltd. (referred to as: Investment Capital) holds 15.40%. Guangdong Jinlong Development Co., Ltd. (referred to as: Jinlong Co.) and its controlling shareholder Dongguan New Century Science and Education Expansion Co., Ltd. (referred to as: New Century Science) hold 20% and 4.60%, respectively.

Dongguan State-owned Assets Supervision and Administration Commission, through Investment Holding Group, Dongguan Holding, and Investment Capital, controls a total of 75.40% of Dongguan Securities’ shares, making it the actual controller.

Compensation shift

Along with performance, Dongguan Securities’ relatively “talk-worthy” compensation structure has been revealed, showing distinct characteristics of a listed securities firm.

From 2023 to 2025, the pre-tax salaries of senior management (including CEO, deputy CEO, board secretary, and other core executives) were 2.8716 million yuan, 2.5011 million yuan, and 2.3354 million yuan, respectively—continuously decreasing over three years: a roughly 12.9% decline in 2024 and another 6.6% in 2025, with a total drop of over 18.6% over two years.

Middle management personnel’s average salaries were 645.5k yuan, 620.4k yuan, and 714.3k yuan; in 2025, a significant 15.1% year-over-year increase, showing a rebound.

Frontline staff’s average salaries were 164k yuan, 158.3k yuan, and 193.5k yuan; in 2025, a sharp 22.2% increase, becoming the main driver of overall company-level salary growth. The securities brokerage line’s average salary in 2025 was 186.2k yuan, up 20.8% from 2024, confirming the salary bonuses for frontline staff.

Regarding “salary hikes,” the research department was the biggest winner in 2025, with a 32.4% year-over-year jump, leading by a wide margin. Meanwhile, traditional core businesses like proprietary trading and investment banking only increased by 7.6% and 13.0%, further highlighting differential salary growth.

IPO sprint

For Dongguan Securities, the high growth in 2025 is more like the “final sprint” of a long IPO marathon that has lasted over ten years.

On one hand, it boasts the rare stability of a regional securities firm: state-owned control, compliance excellence, local monopoly, and continuous high performance growth.

On the other hand, it faces the common fate of small- and medium-sized securities firms: a single business structure, insufficient national reach, weak high-value-added businesses, and over-reliance on a single regional market.

The eighth version of the prospectus confirms that Dongguan Securities has the solid conditions and favorable timing for listing. However, the market is more concerned whether, after entering the capital market, Dongguan Securities, armed with fundraising “ammunition,” can break out of Dongguan, move beyond channel businesses, step out of its comfort zone, and truly grow into a nationally recognized, distinctive, and balanced boutique securities firm—this will be the core challenge for its future development.

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