Investment Rating - The report maintains a "Recommendation" rating for Nanhua Futures, with a target price of 30.25 CNY [2][9]. Core Views - Nanhua Futures demonstrated resilience in its overseas business and secured additional clearing licenses, which is expected to enhance its competitive position [2][9]. - The company reported a total revenue of 1.1 billion CNY for H1 2025, a year-on-year decrease of 58.3%, while the net profit attributable to shareholders was 230 million CNY, reflecting a slight increase of 0.5% [2][9]. - The report highlights the impact of regulatory changes on revenue recognition, particularly in the context of net income reporting, which did not affect net profit [9]. Financial Performance Summary - For H1 2025, the company achieved total revenue of 1.1 billion CNY, with a net profit of 230 million CNY [2][9]. - The revenue breakdown shows a decline in net interest income and commission income, with significant drops of 27.8% and 13.9% respectively, while investment income saw a substantial increase of 570.7% [9]. - The domestic business faced challenges with a 29.0% decline in commission income, despite an increase in trading volume and value in the futures market [9]. - The overseas business reported a 9.3% increase in commission income, supported by a favorable high-interest environment and the expansion of clearing licenses [9]. Future Outlook - The company plans to list in Hong Kong, with the raised funds aimed at bolstering the capital of its overseas subsidiaries, which is expected to strengthen its international business [9]. - The report anticipates that Nanhua Futures will benefit from a more regulated industry environment, allowing it to expand its market share due to its established pricing system [9]. - Earnings per share (EPS) forecasts for 2025, 2026, and 2027 are adjusted to 0.86 CNY, 0.91 CNY, and 0.97 CNY respectively, reflecting a cautious outlook amid macroeconomic conditions [9].