Nanhua Futures(SH:603093) Sou Hu Cai Jing·2025-04-26 04:53Core Viewpoint - Nanhua Futures reported a significant decline in revenue for Q1 2025, with a 46.2% year-on-year drop to 534 million yuan, while net profit saw a slight increase of 0.13% to 85.7383 million yuan [1][2] Financial Performance - The revenue decline is attributed to the adoption of net method for revenue recognition in commodity trading, which does not affect net profit [2] - Core business performance is under pressure, with net commission income down 22.7% to 107 million yuan and net interest income down 20.5% to 143 million yuan [2] - Other business income fell by 60.9% to 270 million yuan, a decrease of 420 million yuan year-on-year [2] Wealth Management - As of the end of Q1, the asset management scale of Nanhua Fund decreased to 11.806 billion yuan, a drop of 45.2% year-on-year, primarily due to market fluctuations in the bond sector [2] Cost Management - The company managed to reduce management expenses from 172 million yuan to 156 million yuan, resulting in a net profit margin increase of 3.52% to 32% [2] Cash Flow - Operating cash flow saw a drastic decline of 354% to -11.758 billion yuan, with cash outflows related to operations increasing significantly [3] IPO and Capital Strategy - Nanhua Futures is accelerating its IPO process in Hong Kong, having submitted its application on April 17, aiming to enhance its capital structure and competitiveness in overseas markets [4] - The company views its overseas business as a crucial growth area, with overseas revenue reaching 654 million yuan in 2024, a 15.32% increase [4] - Since its A-share listing in 2019, Nanhua Futures has raised capital multiple times to support its expansion, including a recent 1.2 billion yuan convertible bond issuance plan [4][5] Overall Business Outlook - Despite profit growth, overall revenue has been declining, indicating a need for capital replenishment to expand overseas market operations [5]