Nanhua Futures(SH:603093) Sou Hu Cai Jing·2025-05-09 07:32Core Viewpoint - Nanhua Futures Co., Ltd. has submitted its prospectus to the Hong Kong Stock Exchange, aiming to become the second "A+H" listed futures company in China after Hongye Futures, following a decline in revenue over the past three years [2][8]. Financial Performance - Nanhua Futures reported revenues of RMB 68.23 billion, RMB 62.47 billion, and RMB 57.12 billion for the years 2022, 2023, and 2024, respectively, reflecting a year-on-year decline of 35.11%, 8.45%, and 8.56% [2][9]. - In Q1 2025, the company's revenue fell by 46.20% year-on-year, nearing a halving of its income [12]. - The main revenue source is domestic risk management services, accounting for 87.8%, 80.0%, and 78.5% of total revenue from 2022 to 2024, while overseas financial services increased from 3.4% in 2022 to 11.4% in 2024 [2][10]. Business Structure and Ownership - Nanhua Futures was established in 1996 and underwent several rounds of capital increases, with the current registered capital at RMB 5.1 billion [3][4]. - The company is primarily controlled by Hengdian Group, with a collective ownership structure involving all employees of Hengdian Group [4][5]. - Nanhua Futures operates through its wholly-owned subsidiary, Henghua International, providing overseas financial services across major international financial centers [11][12]. Regulatory Compliance and Challenges - The company has faced multiple regulatory actions and fines from various jurisdictions, including the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission [13][14]. - Recent regulatory issues include failures in margin requirements and internal control deficiencies in asset management practices [14][15].