Revenue increases by 30%, Shenwan Hongyuan delivers a "rare and hard-won" report card for 2025

Question to AI · How does Shenwan Hongyuan achieve balanced business growth amid increasing industry segmentation?

By 2025, Shenwan Hongyuan stands out in industry competition with unexpectedly strong performance growth, solid financial quality, and clear strategic focus.

Produced by | Zhongfang Network

Reviewed by | Li Xiaoyan

In 2025, the capital market gradually recovers amid volatility, with the securities industry facing a development environment of both opportunities and challenges, and the trend of industry segmentation continues to intensify. As a leading domestic securities firm, Shenwan Hongyuan reports impressive results with double-digit growth in revenue and net profit, and successfully surpasses 24.26B yuan in total assets, delivering a “rare and substantial” annual report card. The company’s high-quality development becomes increasingly steady, steadily advancing toward the strategic goal of “building a first-class investment bank and investment institution.”

In 2025, Shenwan Hongyuan achieves a total consolidated operating income of 9.51B yuan, up 30.29% year-over-year; net profit attributable to shareholders of the listed company reaches 8.48B yuan, an increase of 82.46% year-over-year, ranking among the top in leading securities firms and significantly ahead of industry averages, fully demonstrating the company’s strong endogenous growth momentum. Meanwhile, the company’s scale also makes a leap forward, with total assets surpassing 740 billion yuan by the end of 2025, maintaining a top-tier industry position. Profitability quality is also optimized, with weighted average ROE increasing by over 3.5 percentage points year-over-year, greatly improving capital return efficiency.

To reward investors, the company has launched a generous dividend plan, distributing 0.75 yuan per 10 shares, sharing the company’s growth dividends with shareholders. From the revenue structure perspective, Shenwan Hongyuan has achieved comprehensive growth in core businesses, with net income from fees and commissions reaching 14.94B yuan, up 26.97%; net interest income of 643 million yuan, up 21.78%; and total investment gains and fair value changes reaching 11.2B yuan, an increase of 34.31%. The three core revenue engines are growing rapidly in tandem, laying a solid and diversified foundation for performance growth. Additionally, all four major business segments—principal investment, personal finance, institutional services and trading, and asset management—achieved double-digit growth, with increases of 56.23%, 19.69%, 43.42%, and 18.85%, respectively, clearly showing a balanced growth trend.

The remarkable performance is inseparable from Shenwan Hongyuan’s refined management and deep implementation of cost reduction and efficiency enhancement strategies. In 2025, amid significant expansion of business scale, the company strictly controls operating expenses, which totaled 10.66B yuan, a slight decrease of 0.15% year-over-year, achieving “zero growth” in expenses. Cost control capabilities are particularly prominent in the industry. Of these expenses, over 95% are business and management fees, totaling 7.9B yuan, up only 0.83% year-over-year—far below revenue growth—highlighting effective cost management.

In personnel management, the company continues to optimize its staffing structure, reducing the total number of employees from 11,547 at the end of last year to 11,423, a decrease of over 100. During the same period, employee expenses reached 690k yuan, growing only 2.32% year-over-year. Based on this, the average employee cost is approximately 690k yuan, with per capita profit exceeding 830k yuan, indicating ongoing optimization of input-output efficiency and steady improvement in personnel operational efficiency. Regarding executive compensation, Shenwan Hongyuan maintains a prudent and restrained approach. In 2025, the total pre-tax compensation for directors and senior management was 6.5554 million yuan, with Chairman Liu Jian and General Manager Huang Hao each earning 1.4843 million yuan. The compensation structure is closely tied to company performance, balancing incentives and constraints, fully aligning with industry standards and market expectations.

Amid the overall high growth, Shenwan Hongyuan’s core competitive advantages and business barriers continue to deepen, with differentiated competitiveness increasingly evident. Principal investment has become the main engine driving performance, leveraging excellent research and investment capabilities and rigorous risk control systems to harvest substantial returns amid market fluctuations, serving as a stable “ballast” for the company’s results. Personal finance, i.e., wealth management, has achieved steady growth, supported by nationwide offline branches and professional investment advisory teams. The net income from agency securities trading is impressive, and the company actively invests in fintech, with smart advisory services surpassing one trillion yuan in signed assets, injecting strong momentum into digital transformation and efficiency improvements in wealth management. Institutional services and trading demonstrate strong comprehensive strength, with seat leasing, derivatives, and market-making businesses progressing simultaneously, and market-making services ranking among the industry’s top tier, providing continuous and stable liquidity to the capital market.

At the same time, Shenwan Hongyuan remains aware of structural challenges in its development process and actively takes measures to address them, clearing obstacles for long-term high-quality growth. Although the investment banking business achieved revenue of 830k yuan in 2025, up 11.73%, it ranks relatively behind the four major segments. Facing industry rating fluctuations, the company is focusing on enhancing capabilities in equity and debt financing, financial advisory, and full-chain services, deepening efforts in specialized fields such as Beijing Stock Exchange, STAR Market, and green bonds. In 2025, the scale of equity and debt underwriting exceeded 980 billion yuan, and the company ranked second in the Beijing Stock Exchange sponsorship projects, with initial signs of successful transformation.

Regionally, the company’s East China base remains solid, with revenue reaching 1.58B yuan in 2025, up 26%. In response to the phased decline in revenue and profit in North China, the company proactively optimized its regional layout, increasing the number of securities branches in the region from 14 to 18 within the year, increasing resource investment to support future recovery and development.

In 2025, Shenwan Hongyuan, with unexpectedly strong performance, solid financial quality, and clear strategic focus, successfully stands out in fierce industry competition. The company has precisely grasped the industry benefits of the capital market’s recovery and achieved coordinated improvements in scale, efficiency, and quality through endogenous growth and lean management.

Looking ahead, as the “14th Five-Year Plan” begins and reforms in the capital market deepen, Shenwan Hongyuan will continue to focus on its core businesses, optimize business structure, strengthen technological and compliance-driven development, and accelerate addressing weaknesses and consolidating core competitive advantages. In serving national strategies and empowering the real economy, this veteran securities firm will move forward with a more stable, efficient, and dynamic development posture, confidently aiming to become a first-class investment bank and investment institution.

Personal opinion, for reference only.