Nanhua Futures (603093) Q2 2025 earnings summary

Executive summary

• H1 2025 net profit attributable to shareholders was RMB231.3m, up 0.46% YoY; reported revenue fell 58.27% to RMB1.10bn, largely reflecting a change to net revenue presentation for certain risk-management trades, with no net-profit impact.

• Trading activity and client assets expanded across domestic brokerage, risk management, wealth management and overseas services, while fee and net interest income declined YoY.

Financial highlights

• Revenue was RMB1.101bn, down 58.27% YoY; total profit was RMB257.45m, down 5.07%; net profit attributable to shareholders was RMB231.25m, up 0.46%.

• Adjusted for non-recurring items, attributable net profit was RMB231.78m, up 1.40% YoY; basic and diluted EPS were both RMB0.38.

• Net fee and commission income fell 13.88% to RMB234.54m; net interest income fell 27.80% to RMB253.29m.

• Investment income was RMB129.89m versus a loss of RMB73.56m YoY, mainly reflecting higher realized futures gains in risk-management activities.

• Operating cash flow was negative RMB5.11bn versus positive RMB2.55bn, mainly due to increased funds deposited at exchanges.

Outlook and guidance

• Strategy remains focused on coordinated domestic and overseas services, entity-economy support, risk control and expanding international operations; no quantified earnings guidance was stated.

• Post-period plans include an H-share offering of up to 15% of post-issue share capital, before any greenshoe, and a public convertible-bond issue of up to RMB1.2bn; both remained in preparation, with impacts undetermined.