Huaxin Co., Ltd. 2025 Annual Report Analysis: Net profit attributable to parent increased by 73.98%; net cash outflow from investing activities widened

Core Profitability Indicators Show Significant Growth

Operating Revenue: Up 26.54% Year-on-Year to 2.594 Billion Yuan

In 2025, the company achieved operating revenue of 2.594 billion yuan, an increase of 26.54% compared to the adjusted 2.050 billion yuan in 2024. By business segment, revenue from brokerage, credit, asset management, futures, and other businesses all saw growth, with asset management revenue growing the fastest at 39.04%, mainly due to increased management fees driven by the expansion of asset management business scale; credit business revenue increased by 36.97%, driven by a rise in interest income from the growth of margin financing at the end of the period; brokerage revenue grew by 22.57%, benefiting from increased net income from agency securities trading due to the overall market’s stock fund trading volume growth.

Net Profit Attributable to Parent Company: Up 73.98% Year-on-Year to 636 Million Yuan

In 2025, the net profit attributable to the parent company’s shareholders was 636 million yuan, a substantial increase of 73.98% compared to 365 million yuan in 2024. After deducting non-recurring gains and losses, the net profit attributable to the parent company was 612 million yuan, a year-on-year increase of 69.87%, indicating high profitability quality. The growth in net profit was mainly due to the expansion of revenue scale and a year-on-year decrease of 67.32% in credit impairment losses (with the reversal of impairment losses on bought financial assets during the period).

Earnings Per Share: Basic Earnings Per Share Up 76.47% to 0.60 Yuan

In 2025, the company’s basic earnings per share was 0.60 yuan/share, representing a 76.47% increase from 0.34 yuan/share in 2024; the non-recurring basic earnings per share was 0.58 yuan/share, a year-on-year increase of 70.59%. The growth rate of earnings per share was higher than that of net profit, mainly because there were no capital changes during the year, and profit growth was directly reflected in earnings per share.

Expense Structure Optimized

Business and Management Fees: Up 7.18% Year-on-Year to 1.717 Billion Yuan

In 2025, the company’s business and management fees amounted to 1.717 billion yuan, an increase of 7.18% compared to 1.602 billion yuan in 2024, with a growth rate lower than that of revenue. By item, consultation fees increased significantly year-on-year, mainly due to increased professional service expenses brought about by business expansion; employee compensation, electronic equipment operation fees, and other items showed slight fluctuations, reflecting overall cost control effectiveness.

Sales Expenses: Not Disclosed Separately, Reflected in Overall Expenses

The company did not disclose sales expense details separately, and related sales expenditures are included in business and management fees. From the structure of business and management fees, sales service fees decreased by 5.12% year-on-year, indicating that the company has achieved some success in controlling sales costs.

Management Expenses: Not Disclosed Separately, Reflected in Overall Expenses

The company did not disclose management expense details separately, and related management expenditures are included in business and management fees. Business entertainment expenses decreased by 25.99% year-on-year, reflecting the company’s efforts in controlling internal management costs.

Financial Expenses: Net Interest Income Up 91.55% Year-on-Year to 169 Million Yuan

In 2025, the company’s net interest income was 169 million yuan, an increase of 91.55% compared to 88 million yuan in 2024. The main reasons for this increase were the rise in interest income from lent funds and the decrease in interest expenses on bonds payable, with the growth in interest income from the expansion of margin financing business being the core driving factor.

R&D Expenses: Not Disclosed Separately, Technical Investment Reflected in Costs

The company did not disclose R&D expenses separately, and related financial technology investments are included in electronic equipment operation fees, intangible asset amortization, and other items. In 2025, the company continued to upgrade its trading system, utilizing artificial intelligence technology to empower customer service, with financial technology investments driving a year-on-year increase of 21.43% in electronic equipment operation fees.

R&D Team Supports Business Innovation

The company did not disclose the number and structure of R&D personnel separately, but from the business results, the self-developed “XIN i Intelligent Investment Research Platform” was officially launched, achieving key breakthroughs in multimodal document analysis and semantic retrieval; empowered by financial technology, brokerage business stock fund trading volume grew rapidly, and the asset management business issued multiple MOM products, showing that the company’s R&D team’s investment in financial technology has transformed into business competitiveness.

Cash Flow Structure Shows New Characteristics

Operating Cash Flow: Net Inflow of 4.370 Billion Yuan, Down 37.68% Year-on-Year

In 2025, the net cash flow from operating activities was 4.370 billion yuan, a decrease of 37.68% compared to 7.012 billion yuan in 2024. The main reasons were an increase in net outflow of financial instruments held for trading purposes and a decrease in net cash received from agency securities trading, while the net inflow from repurchase business partially offset these impacts.

Investing Cash Flow: Net Outflow of 2.424 Billion Yuan, Expanded Year-on-Year

In 2025, the net cash flow from investing activities was -2.424 billion yuan, with the net outflow scale expanding by 725 million yuan compared to -1.699 billion yuan in 2024. This was mainly due to a decrease of 1.078 billion yuan in cash received from investment recoveries during the period, while new investment expenditures increased.

Financing Cash Flow: Net Inflow of 1.423 Billion Yuan, Up 128.49% Year-on-Year

In 2025, the net cash flow from financing activities was 1.423 billion yuan, an increase of 128.49% compared to 623 million yuan in 2024. This was mainly due to an increase of 2.050 billion yuan in investments received from third-party equity holders during the period, while the scale of debt repayments was controlled.

Facing Multiple Risk Challenges

Market Risk

Fluctuations in market prices (interest rates, exchange rates, stock prices, etc.) may cause losses to the company. In 2025, fluctuations in the equity market and exchange rate changes affected some of the company’s businesses, with foreign exchange gains decreasing by 129.34% year-on-year. The company controls market risk through limit management, risk hedging, and other means, but still needs to cope with uncertainties brought about by macroeconomic and capital market fluctuations.

Credit Risk

Default by financing parties, counterparties, or issuers may lead to losses. Although the company has established a credit risk management system, the expansion of margin financing business scale and increased bond investment scale have correspondingly increased credit risk exposure, requiring continuous strengthening of credit risk monitoring and mitigation.

Operational Risk

Incomplete or problematic internal procedures, personnel, or information technology systems may lead to losses. With increased financial technology investments, system complexity has risen, making it more challenging to prevent operational risks, and the company needs to further optimize internal processes and strengthen employee training and system operation and maintenance.

Liquidity Risk

Inability to obtain sufficient funds in a timely manner at a reasonable cost may affect the company’s operations. In 2025, the company’s liability scale grew, necessitating reasonable matching of asset and liability terms and scales, broadening financing channels, and preventing liquidity risks.

Compensation Situation of Directors, Supervisors, and Senior Executives

During the reporting period, the company’s chairman, Li Jun, received compensation from related parties and did not receive any from the company; the total pre-tax remuneration for director and general manager Yu Yang from the company was 2.8327 million yuan; the total pre-tax remuneration for former deputy general manager and chief accountant Tian Ming was 1.2200 million yuan; the current chief accountant Zhou Chang’e’s total pre-tax remuneration during the reporting period was 220,500 yuan. The compensation levels are generally aligned with the company’s operating performance and industry standards, reflecting the principle of linking compensation with performance.

Core Indicator Comparison of Financial Data Changes

Investment Tips

The company’s performance in 2025 showed significant growth, and the effectiveness of financial technology empowerment is evident, but attention should be paid to potential impacts on performance from market fluctuations, credit risks, liquidity risks, and other factors. Additionally, intensified industry competition and changes in regulatory policies may also affect the company’s future development; investors should comprehensively assess risks and returns and make cautious investment decisions.

Click to view the original announcement>>

Disclaimer: The market carries risks, and investments need to be cautious. This article is automatically published by an AI model based on a third-party database and does not represent the views of Sina Finance. Any information contained in this article is for reference only and does not constitute personal investment advice. Please refer to the actual announcement for any discrepancies. If you have any questions, please contact biz@staff.sina.com.cn.

Massive information and precise interpretation, all in the Sina Finance APP

Editor: Xiao Lang Kuai Bao