Shenwan Hongyuan Group Co., Ltd. recently disclosed its 2025 annual report. The financial report shows that, benefiting from a significant increase in trading activity in the A-share market during 2025, the company achieved annual operating revenue of 24.256 billion yuan, a year-on-year increase of 30.29%. Net profit attributable to shareholders of the listed company reached 9.507 billion yuan, surging 82.46% year-on-year, marking a new high in operating performance in recent years.
However, the company's performance showed considerable volatility on a quarterly basis. Data indicates that for the first to fourth quarters of 2025, Shenwan Hongyuan's net profit attributable to shareholders was 1.977 billion yuan, 2.307 billion yuan, 3.732 billion yuan, and 1.491 billion yuan, respectively. While the third quarter's net profit peaked for the year, the fourth quarter saw a sharp sequential decline of 56.5%, representing the lowest quarterly profit for the entire year.
The company's annual report did not provide a specific explanation for the significant quarterly fluctuations. Market analysis suggests that trading enthusiasm in the A-share market cooled during the fourth quarter. Furthermore, the company's net gains/losses on fair value changes turned negative in that quarter, which likely had a substantial adverse impact on its performance.
Analyzing the revenue composition, the combined total of "investment income + net gains/losses on fair value changes" for 2025 was 14.935 billion yuan, accounting for 61.57% of operating revenue. This proportion increased from 59.73% in the previous year. In contrast, net fee and commission income was 8.477 billion yuan, with its share of revenue decreasing from 35.86% to 34.95%.
Within this segment, net fee income from asset management and fund management business fell 7.81% year-on-year, dropping from 796 million yuan to 734 million yuan. The company attributed this primarily to a decline in fee income from its fund management business. This contraction is noteworthy, especially against the backdrop of a general recovery in the industry's asset management scale.
Shenwan Hongyuan also faces challenges in compliance and risk control. The annual report reveals that several of its subsidiaries received regulatory fines or disciplinary actions during 2025. The issues involved multiple areas, including investment banking, asset management, and compliance management at branch offices.
Specifically, in March 2025, Shenwan Hongyuan's underwriting subsidiary was publicly reprimanded by the Shanghai Stock Exchange for insufficient verification regarding the identification of R&D personnel and the accuracy of R&D expenditures in the IPO sponsorship project for Guohong Tool System (Wuxi) Co., Ltd. Two sponsor representatives were banned from practice for six months.
In July 2025, Shenwan Hongyuan Western Securities was administratively penalized by the People's Bank of China Xinjiang Uygur Autonomous Region Branch for failures such as not implementing enhanced due diligence measures for high-risk customers as required and not conducting manual analysis and identification of abnormal transactions. Later, in October of the same year, its Wujiaqu Zhenxing Street branch received a warning letter from the Xinjiang Regulatory Bureau of the China Securities Regulatory Commission for issues including delegating client solicitation to bank staff.
Regarding asset management, in August 2025, Shenwan Hongyuan Asset Management received a warning letter from the Shanghai Regulatory Bureau of the CSRC due to non-standard investment management practices in private asset management business and insufficient active management of certain private asset management plans. Subsequently, in October 2025, Shenwan Hongyuan Securities received another warning letter from the same bureau for failing to disclose major events of certain private asset management products to investors within the stipulated period and for not conducting post-investment inspections as required by internal policies.