Decoding Nanhua Futures' 2025 Annual Report

As the annual report disclosures enter a busy peak, the futures industry has also received its first set of performance results from a listed futures company.

On the evening of March 27, Nanhua Futures released its 2025 annual report. For the full year, the company recorded operating revenue of RMB 1.388 billion, up 2.45% year over year; attributable net profit of RMB 0.486 billion, up 6.18% year over year, with net profit hitting a record high. By the end of 2025, the company’s total assets reached RMB 65.473 billion, up 33.99% from the end of the previous year.

From the perspective of business segments, in 2025, Nanhua Futures’ business development centered on “serving the real economy and enabling enterprises’ globalization.” Its overseas financial services business became the “backbone” driving performance growth, while its risk management business, as it continued to advance, provided effective solutions to help real-economy enterprises withstand fluctuations in commodity prices.

Overseas financial services become the core engine of growth

In recent years, China’s futures market has connected the world through opening up, linking global industrial chains, supply chains, and value chains, helping Chinese companies participate more deeply in global competition. China’s futures market has also gradually formed mature opening-up models, including direct opening up, participation by Qualified Foreign Institutional Investors (QFII), authorization of settlement prices, and so on, with a regulatory framework and international rules fully aligned.

Against this backdrop, Nanhua Futures “accelerated into the market.” In 2025, its overseas financial services business became the company’s core engine of growth. It recorded operating revenue of RMB 0.758 billion, up 15.79% year over year, accounting for 55% of total revenue, with a gross margin of 66.26%. As of the end of December 2025, the total client equity in the company’s overseas brokerage business was HKD 23.306 billion, and its overseas asset management scale was HKD 4.812 billion.

Meanwhile, compliance and licenses are the core barriers for Nanhua Futures’ globalization layout. Currently, the company’s overseas license framework continues to be upgraded. It has cumulatively obtained 19 member qualifications and 15 clearing member席位 (clearing member seats) including those from the CME Group, LME, HKEX, SGX, and European Intercontinental Exchange, covering all business areas such as futures, securities, asset management, and foreign exchange. It ranks among the first tier of Chinese-funded futures firms.

An equity research report by Soochow Securities believes that, leveraging its first-mover advantage in an internationalization strategy, Nanhua Futures has built distinctive competitiveness, with especially significant advantages in overseas clearing. It is expected to continue unlocking its development potential.

Looking ahead, Nanhua Futures stated in its annual report that its internationalization strategy will rely on its overseas subsidiary Henghua International as its base. Following the overall approach of “deepening in Asia-Pacific, strengthening in Europe and the U.S., and laying out in emerging markets,” it will build a global “multi-center” network in phases. It will also gradually establish a multidimensional international business system of “derivatives + wealth management + securities,” aiming to empower the securities business with derivative capabilities, and to deliver integrated services through coordination between securities and asset management. This will help create unique competitive advantages—extending from its current derivatives trading and clearing capabilities to comprehensive financial services capabilities—ultimately forming a full-chain financial service provider characterized by cross-border derivatives, with coordination among multiple licenses to serve Chinese companies going global.

Risk management blooms across multiple businesses to support the real economy

In financial markets, the futures industry has a natural bloodline relationship with the real economy. In 2025, amid a high-volatility global market environment, real-economy enterprises faced multiple challenges such as price volatility and the reconfiguration of supply chains. The futures market helps firms lock in costs and profits through core tools such as forward pricing and hedging, turning uncontrollable market risks into manageable operating indicators.

Nanhua Futures said that in 2025, the company focused on carrying out basis trading, OTC derivatives, and market-making businesses, and continued to deepen business innovation. Basis trading closely matches the needs of upstream and downstream segments of the industrial chain, precisely enabling real-economy enterprises’ risk management. The OTC derivatives business drives scale growth through “product innovation + scenario expansion,” enabling precise provision of differentiated risk management solution plans to meet the diverse needs of various institutions and investors. The “insurance + futures” innovative service model supports rural revitalization and fulfills social responsibility. At the same time, the company continued to expand the breadth of its market-making business to help improve market liquidity.

Data will eventually “speak for itself.” Nanhua Futures’ 2025 annual report shows that during the reporting period, its OTC derivatives business cumulatively added new notional principal of RMB 74.9 billion. The “insurance + futures” program saw more than 75 entry projects throughout the year, providing RMB 1.881 billion in risk protection to agricultural-related entities, with a cumulative amount of 4.515 million tons of agricultural products undertaken. In addition, the company proactively reduced the scale of spot trading, focusing its business development on the rollout of new products and the cultivation of potential products. It successfully advanced the business implementation of products such as caustic soda, aluminum oxide, platinum, and palladium.

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