Hongye Futures and Ruida Futures both disclosed their 2025 annual reports on the same day. Why is there a significant divergence in their performance?

Ask AI · What are the specific reasons behind Hedging Industry Futures’ core business downturn?

Everyday Economic News reporter: Wen Duo    Everyday Economic News editor: Huang Bowen

While the futures industry as a whole saw a recovery in 2025, Hedging Industry Futures (SZ001236, share price 9.68 yuan, market cap 9.76B yuan) still turned in an annual “report card” that doesn’t look very good.

According to the company’s 2025 annual report disclosed on the evening of March 31, 2025, it achieved total operating revenue of 288 million yuan, down 20.53% year over year, and net profit attributable to shareholders was 3.9927 million yuan, down 86.61% year over year.

According to the annual report, the company’s profit decline was driven by decreases in multiple key business indicators, including net commission income from brokerage business and interest income from customers’ funds deposits. This stands in sharp contrast to the 16.14% year-on-year growth in overall industry net profit disclosed by the China Futures Industry Association for 2025.

On the same day, Reach Futures (SZ002961, share price 22.46 yuan, market cap 10.71B yuan) also released its 2025 annual report.

Hedging Industry Futures’ 2025 net profit attributable to shareholders fell 86.61% year over year

In 2025, during the reporting period, the company achieved total operating revenue of 288 million yuan, compared with 362 million yuan in 2024 (adjusted), representing a decline of 20.53%.

The decline on the profit side was even more pronounced. In 2025, net profit attributable to shareholders was only 3.9927 million yuan; compared with 29.8262 million yuan in 2024 (adjusted), it fell 86.61% year over year. Net profit after deducting non-recurring items was 4.1848 million yuan, with the decline also reaching 84.23%.

According to data released by the China Futures Industry Association, in 2025, 150 futures companies nationwide cumulatively realized net profit of 11.00 billion yuan, up 16.14% year over year, ending the consecutive decline trend from 2022 to 2024. Against the backdrop of an overall rebound in the industry, Hedging Industry Futures’ performance clearly failed to keep pace.

Judging from the segmented data of principal businesses, the decline in core revenue is the main reason behind the company’s sharp drop in net profit.

First, the brokerage business—which serves as the company’s “stabilizing cornerstone”—faces challenges. During the reporting period, the group’s net brokerage commission income was 167 million yuan, down 3.80% from 173 million yuan in 2024. At the same time, interest income from customers’ funds deposits was 47.4905 million yuan, down 44.37% from 85.3616 million yuan in 2024.

In 2025, the year-on-year decline in Hedging Industry Futures’ overall net interest income also reached 34.20%. In its annual report, the company explained that this was mainly due to lower interest rates this year.

Second, the asset management business also shrank. As of the end of 2025, the company’s asset management scale was 1.06B yuan, while the figure was 16.11B yuan at the end of 2024. Affected by this, the income realized from the asset management business was 2.9866 million yuan, down 50.24% from 6.0019 million yuan in 2024.

In addition, the risk management business and financial asset investment business also performed poorly. For the risk management business, full-year operating revenue was 42.05M yuan, down 15.88% year over year. In terms of financial asset investment, although overall it delivered steady returns, the total of investment gains and gains from fair value changes was 20.3061 million yuan, down 27.72% year over year.

Despite the company’s profit squeeze in 2025, Hedging Industry Futures is committed to repaying shareholders. It plans to distribute cash dividends of 0.04 yuan for every 10 shares to all shareholders (including tax). Based on this, the company plans to distribute total cash dividends of 4.0311 million yuan (including tax).

Based on 2025 annual net profit attributable to shareholders of 3.9927 million yuan, this cash dividend amount is 100.96% of net profit attributable to shareholders.

In the annual report, the company stated that this profit distribution proposal comprehensively considered the company’s current operating conditions and future development needs. The proposal is aimed at ensuring the normal operation of the company’s production and business activities, enhancing its ability to withstand risks, and better safeguarding the long-term interests of all shareholders. This proposal will be implemented only after approval by the company’s shareholders’ meeting.

Reach Futures’ 2025 net profit attributable to shareholders increased 42.95% year over year

On the same day, Reach Futures also released its 2025 annual report.

In 2025, Reach Futures achieved operating revenue of 1.23B yuan, up 23.20%; and achieved net profit attributable to shareholders of 547 million yuan, up 42.95%.

In terms of business structure, in 2025 Reach Futures’ asset management business revenue increased 81.34% year over year. Meanwhile, revenue from its futures brokerage business and risk management business increased 15.70% and 14.19% year over year, respectively.

During the reporting period, Reach Futures’ parent company added 13,842 new customers, including 769 new institutional customers. As of the end of 2025, the customer margin balance for the parent company totaled 20.02B yuan, of which institutional customer margin totaled 14.7B yuan, accounting for 73.39% of the company’s total customer margin balance. Futures brokerage business commission income (parent company basis) was 475 million yuan, up 19.82%.

On this basis, Reach Futures plans to distribute cash dividends of 2.30 yuan for every 10 shares to all shareholders (including tax), and expects to distribute total cash dividends of 110 million yuan.

Daily Economic News