We are a leading futures company in the PRC, providing global financial services to clients. According to the F&S Report, we ranked 8th among all futures companies in the PRC by total revenue in 2024, and 1st among all non-financial institution-related futures companies in the PRC by total revenue in 2024. The principal focus of our Group lies in the provision of futures and derivatives services, both within the PRC and in international markets. Leveraging our understanding of the needs of both Chinese and overseas clients developed through our decades of experience, coupled with our insights into global financial and derivatives markets, we offer comprehensive and customized derivatives and risk management services to industrial clients, financial institutions, and individual investors; and we also strive to offer more diverse wealth management services to investors both in China and abroad.
Founded in 1996 and headquartered in Hangzhou, China, we have, over the years, focused on business development, the application of technology, the delivery of professional services and the strengthening of internal controls. We began as a PRC futures brokerage service provider, and have since developed into a comprehensive, global financial services platform. Our offerings include PRC futures brokerage, PRC risk management service, PRC wealth management, and overseas financial services, covering the value chain of futures and derivatives.
We believe that futures and derivatives markets play a crucial role in the economy and financial system by facilitating price discovery, risk management, and resource allocation. These markets are intricately linked to enterprises, investors, and consumers, contributing to operational stability, commodity circulation, and the stabilization of supply and prices. The PRC government actively encourages the utilization of futures and derivatives markets to support the real economy by optimizing commodity futures for agriculture, manufacturing, and green development, enhancing financial futures to stabilize capital markets, and promoting international market expansion.
We have executed a diversification strategy encompassing various service types, cross-national coverage, and diverse asset classes. This strategy has culminated in forming a comprehensive financial services product network under a globalized framework. Specifically:
‧ Global Network: Since 2006, we have been one of the first PRC futures companies to implement an internationalization strategy. Leveraging our overseas branch network in major financial hubs, we extend our reach across Asia, North America, and Europe, delivering round-the-clock cross-market trading services. By integrating our PRC and overseas platforms, we manage to mitigate the impact of any single market on our operations.
‧ Diverse Business Mix: We maintain a comprehensive and diversified business layout, covering the key value chains of the futures and derivatives markets. Our product mix covers a diverse range of asset classes, including futures and spot commodities (including agricultural, industrial, energy and chemical, and metals) as well as equity and fixed-income securities. From trade execution to risk management, and from wealth management to overseas financial services, we provide end-to-end coverage of these value chains, building a robust business framework.
‧ Exchange-traded and OTC Products. We integrate exchange-traded and OTC transactions to cater for diverse client needs, demonstrating our capability to consolidate and allocate a wide range of products, accurately identify market and client demands, and deliver professional, customized risk management services.
‧ Mutual funds and Private Products. We offer both mutual fund products and asset management services. By combining publicly and privately offered products under our wealth management umbrella, we strive to serve clients with varying risk appetites and investment needs.
‧ Futures and Spot Products. Our PRC risk management services business plays a pivotal role in supporting the real economy through its integrated spot and futures operations. We operate within the industrial value chain through our service offerings, helping enterprises manage market risks.
‧ Online and Offline. We offer seamless customer experience by integrating online platforms with our branch network. Clients benefit from personalized services at branches while enjoying convenient access to trading and support through our online channels.
We were among the first companies established in China’s futures industry, contributing to its evolution from early stages to a mature market. Compared with overseas financial service providers, we enjoy strong trust among Chinese industrial and institutional clients in cross-border derivatives. The number of corporate registered clients of our PRC futures brokerage business increased steadily from 4,266 as of December 31, 2022 to 4,672 as of December 31, 2023, representing year-on-year growth of 9.5%. This further increased to 5,089 as of December 31, 2024, representing year-on-year growth of 8.9%, and to 5,279 in the six months ended June 30, 2025, representing a growth of 3.7%. The number of financial institution registered clients of our PRC futures brokerage business increased from 1,140 as of December 22, 2022 to 1,488 as of December 31, 2023, representing year-on-year growth of 30.5%. This further increased to 1,770 as of December 31, 2024, representing year-on-year growth of 19.0%, and to 1,872 in the six months ended June 30, 2025, representing a growth of 5.8%. As of December 31, 2024, client equity of our PRC futures brokerage reached RMB31.6 billion, up 65.4% from that of December 31, 2022, as compared to a CAGR of 1.9% of the China’s futures industry. As of December 31, 2022, 2023 and 2024 and June 30, 2025, total client equity from our overseas futures, securities, and leveraged foreign exchange brokerage services stood at approximately HK$11.9 billion, HK$12.5 billion, HK$13.8 billion, and HK$17.8 billion, respectively, while our overseas asset management business had an AUM of approximately HK$2.0 billion, HK$2.3 billion, HK$2.5 billion, and HK$3.4 billion, respectively.
We have established a IT infrastructure that is pivotal in our business operations, corporate governance, and risk management. We have been recognized with accolades that highlight our leadership in leveraging technology for excellence and innovation. Our technology infrastructure offers significant advantages, notably the client-centric Nanhua Futures App. We leverage innovative systems such as the fifth-generation NHTD trading system and the Ruihua Risk Management Services Business Risk Control System for high-frequency monitoring and robust risk management. Additionally, our global data center network comprises over 150 server cabinets, ensuring secure and efficient trading. Our resilient data center architecture, featuring a “two-location, three-center” setup, enhances operational stability and cybersecurity.
With our cross-national network, our business mix and our technology capabilities, we have achieved financial growth over the Track Record Period. Our profit for the year rose from RMB245.9 million in 2022 to RMB458.0 million in 2024, reflecting a CAGR of 36.5%. Our profit for the period remained stable, amounting to RMB230.5 million for the six months ended June 30, 2024 and RMB231.3 million for the six months ended June 30, 2025. Our weighted average ROE demonstrated improvement and continued resilience during the Track Record Period, reaching 7.75%, 11.46%, 11.71%, 6.03%, and 5.51% in 2022, 2023, and 2024 and for the six months ended June 30, 2024 and 2025, respectively.
Source: Nanhua Futures (02691) Prospectus (IPO Date : 2025/12/12) |