Hongta Securities Wealth Management experiences high growth, vigorously expanding the investment advisory product system, with AI large models being implemented.

Financial Associated Press March 28 (Reporter Zhao Xinrui) Hongta Securities disclosed its 2025 annual report on March 27, achieving an operating income of 2.434 billion yuan, a year-on-year increase of 37.76%; the net profit attributable to shareholders of the parent company was 1.214 billion yuan, a year-on-year increase of 58.84%, and the company has maintained a 23-year profit record.

In terms of shareholder returns, the company plans to distribute a cash dividend of 751 million yuan for the year 2025, in addition to the mid-term cash dividend already distributed of 236 million yuan, making the total cash dividend for 2025 reach 987 million yuan. The total amount of repurchase plus dividends accounts for as much as 92.84% of the net profit attributable to shareholders of the parent company, setting a new historical high. The company has maintained a dividend payout ratio of over 90% for the past three years, with cumulative dividends of 2.862 billion yuan since its listing.

In terms of business structure, all three main operating segments of the company achieved year-on-year growth. Specifically, the proprietary investment business generated revenue of 1.748 billion yuan, a year-on-year increase of 28.04%, benefiting from the effectiveness of the company’s non-directional transformation of its proprietary investment business; the wealth management business generated revenue of 581 million yuan, with a year-on-year growth rate of 70.35%; and the institutional service business generated revenue of 292 million yuan, a year-on-year increase of 35.05%.

Certain business segments of Hongta Securities faced pressure. The annual report shows that other business income for the year 2025 amounted to 2.1237 million yuan, a year-on-year decrease of 43.38%, mainly due to Hongta Futures not engaging in insurance + futures business. Meanwhile, net interest income was 380 million yuan, slightly down 7.97% from the same period in 2024.

Proprietary, fee, and commission net income contribute to revenue growth

During the reporting period, Hongta Securities’ operating income was 2.434 billion yuan, an increase of 667 million yuan year-on-year, with a growth rate of 37.76%.

From the main reasons for the changes, it benefited from the company’s further enhancement of the scientificity and effectiveness of asset allocation, continuously promoting the non-directional transformation of proprietary investment business, optimizing the asset-liability structure and content, and continuously improving asset quality, with the combined gains from fair value changes of financial assets and investment income increasing by 566 million yuan year-on-year.

At the same time, Hongta Securities’ investment banking and wealth management light capital businesses also became another important factor contributing to revenue growth. The company’s net income from fees and commissions for 2025 reached 419 million yuan, an increase of 131 million yuan compared to 288 million yuan in the same period, representing a growth rate of 45.25%.

Proprietary investment business’s non-directional transformation

As the segment contributing the most to revenue growth, Hongta Securities’ non-directional transformation of its proprietary investment business is continuously deepening.

Specifically, the company’s fixed income proprietary investment has achieved investment returns by flexibly adjusting the asset structure, scale, and duration of the portfolio. In terms of FICC construction, on one hand, it strengthens research on overseas fixed income markets, exploring differentiated investment opportunities in the global fixed income market; on the other hand, it actively applies for new businesses and new products, reserves investment strategies, and improves investment varieties and methods.

The innovation and derivatives investment business focuses on non-directional businesses, including public REITs investment and over-the-counter derivative investments linked to major asset indices.

It is worth noting that the company’s market-making business qualifications for the Beijing Stock Exchange have passed inspection and an application has been submitted to the China Securities Regulatory Commission, with progress on the application ongoing.

Wealth management business vigorously expands investment advisory product system

Among the three main business segments, the wealth management business has the most prominent revenue growth, achieving revenue of 581 million yuan in 2025, a year-on-year increase of 70.35%.

In 2025, Hongta Securities vigorously expanded its investment advisory product system. At the same time, by combining its own advantages and characteristics in wealth management, it continues to create a wealth management business with its own characteristics in collaboration with asset management, securities research, futures, public funds, and other business lines. Deepening internal collaboration and exploring external channels are also key operational focuses for the company’s wealth management business this year.

Investment banking business builds differentiated advantages, focusing on exchangeable corporate bonds and intellectual property securitization products

In the investment banking business, Hongta Securities has increased its support for financing services in the field of technological innovation, using exchangeable corporate bonds as a link. In 2025, it issued a total of seven exchangeable corporate bonds, including leading the underwriting of an 800 million yuan technology innovation exchangeable corporate bond for Yuntianhua Group.

Hongta Securities also made multiple efforts in the field of broker-dealer private placements. Firstly, as the main underwriter, it completed the A-share stock issuance project for Nanjing Securities to specific objects; secondly, as a co-underwriter, it completed the A-share stock issuance project for Zhongtai Securities to specific objects.

The asset securitization business focuses on the niche track of intellectual property securitization, creating differentiated competitive advantages and successfully issuing asset securitization products labeled with intellectual property and technological innovation. During the reporting period, the Shanghai branch continued to strengthen deep cooperation with strategic clients, successfully issuing the second supply chain asset securitization product.

Large model “Hongta Smart Inquiry” mini program launched

While disclosing its 2025 performance, Hongta Securities also released its sustainable development report, which also deserves attention for its layout in the field of technology empowerment.

In 2025, the company continued to promote the integration of business intelligence upgrades and management systems, building an intelligent application platform, an integrated management system, and a self-developed digital platform for party building, achieving dual improvements in operational efficiency and service quality.

In terms of large models, the company launched the “Hongta Smart Inquiry” mini program, integrating the AI Q&A knowledge base into core business processes such as wealth management, customer service, and compliance risk control, establishing a lightweight, replicable large model application model.

Additionally, the self-developed “Hongxin Casting Tower” comprehensive management platform was officially launched in 2025 and obtained software copyright.

In 2026, it will further strengthen competitive advantages in niche fields

Looking ahead to 2026, Hongta Securities will further strengthen its competitive advantages in niche fields, focusing on advancing two major business directions.

First, deepen asset-liability management and the non-directional transformation of proprietary investment. Improve management mechanisms such as FTP and human assessment for non-directional transformation of proprietary investment, promoting the continuous enhancement of core strategy capacity within the overall framework of asset allocation.

Second, strengthen the construction of wealth management capabilities. First, enhance the cultivation of investment advisors through personnel classification training and continuously expand the service radius of excellent investment advisors, and launch more outstanding investment advisory products; second, take the reform of relevant regulations for public fund distribution as an opportunity to promote the reform of the public product sales system.