The first interim earnings forecast from a futures company has been released.

On the evening of July 7, Nanhua Futures Co.,Ltd. (603093.SH, 02691.HK) issued a preliminary profit increase announcement for the first half of 2026. The company projects its net profit attributable to shareholders to be in the range of 375 million to 405 million yuan, representing an increase of 144 million to 174 million yuan compared to the same period last year, a year-on-year rise of between 62.16% and 75.13%.

For the same period, the company expects its adjusted net profit, excluding non-recurring gains and losses, to be between 377 million and 407 million yuan, a year-on-year increase of 62.65% to 75.59%. Basic earnings per share are projected to be 0.53 to 0.58 yuan, up 39.47% to 52.63% from the prior year.

The announcement notes that in the first half of 2025, Nanhua Futures achieved a net profit of 231 million yuan, an adjusted net profit of 232 million yuan, and basic earnings per share of 0.38 yuan.

Regarding the reasons for the projected profit growth, the company stated in the announcement that during the reporting period, factors such as geopolitical conflicts, fluctuating overseas interest rate expectations, and diverging supply and demand in commodity markets have driven increased volatility in both domestic and international markets. This has led to a sustained release of risk management demand from corporate entities.

Nanhua Futures focuses on four main business segments: overseas financial services, futures brokerage, risk management, and wealth management. Aligning with industry trends of internationalization, institutionalization, and industrial integration, the company has built its competitive edge through comprehensive financial service capabilities, enhancing client retention and improving its overall profitability.

Notably, the overseas financial services business made a significant contribution to the company's overall performance. The advantages of its proprietary clearing system layout continued to be prominent, with its trading clearing efficiency and fund security consistently attracting industrial and institutional clients, thereby generating incremental business.

Currently, Nanhua Futures holds trading membership qualifications at 19 major global exchanges and clearing qualifications at 15. The scale of overseas client equity continues to grow. Following the company's listing on the Main Board of The Stock Exchange of Hong Kong in December 2025, the raised capital effectively bolstered the capital base for its overseas business development, further unlocking business potential and significantly driving the improvement of the company's overall operating performance.

The announcement also cautioned that the forecasted figures are preliminary estimates. The specific and accurate financial data will be subject to the company's officially disclosed 2026 interim report, and investors are advised to be mindful of investment risks.

Overall, the first-half performance of Nanhua Futures continues the growth momentum seen last year.

The company's 2025 annual report showed full-year revenue of 13.88 billion yuan, a year-on-year increase of 2.45%. Net profit attributable to shareholders was 486 million yuan, up 6.18% year-on-year, while adjusted net profit was 489 million yuan, a rise of 7.67%. Basic earnings per share for 2025 were 0.80 yuan, an increase of 6.67%, with a weighted average return on equity of 11.30%.

As of the end of 2025, Nanhua Futures' total assets stood at 65.473 billion yuan, a growth of 33.99% from the end of the previous year. Shareholders' equity attributable to the parent company was 5.596 billion yuan, an increase of 35.98%.

For the first quarter of 2026, the company reported revenue of 433 million yuan, a year-on-year surge of 60.66%, and a net profit attributable to shareholders of 205 million yuan, skyrocketing 138.82% year-on-year. By the end of Q1 2026, the company's total assets had reached 78.121 billion yuan, a 19.32% increase from the end of the previous year.

According to its official website, Nanhua Futures was founded in 1996 with a registered capital of 718 million yuan. It was among the first batch of comprehensive clearing members of the China Financial Futures Exchange.

The company listed on the Shanghai Stock Exchange in August 2019 and on the Main Board of the Hong Kong Stock Exchange in December 2025. Its primary business activities include commodity futures brokerage, financial futures brokerage, futures investment consulting, asset management, and securities investment fund distribution, positioning itself as a global financial derivatives service platform. It currently operates 11 branches, 3 wholly-owned subsidiaries, and 28 sales offices, with approximately a thousand employees.

In a separate announcement also released on the evening of July 7, Nanhua Futures stated that, to further optimize its sales network layout, integrate operational resources, and enhance overall service efficiency, it has decided to close its Harbin sales office. All related business will be transferred to its Heilongjiang branch.

On the compliance front, available information indicates that during the first half of 2026, Nanhua Futures and related personnel were subject to multiple regulatory actions.

On April 3, the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission issued a warning letter to the company. The action was taken due to failures in effectively implementing internal control systems related to procurement, which resulted in losses, and inadequate management of certain employee conduct. The regulatory measure was recorded in the securities and futures market integrity archive.

On the same day, the same regulatory body issued a warning letter to Jia Xiaolong, the General Manager of Nanhua Futures, holding him responsible for management oversight of the aforementioned violations. This action was also recorded in the integrity archive.

Earlier, on February 11, the Zhejiang Regulatory Bureau issued a decision identifying Zhang Zhe as an unsuitable candidate for certain roles. The investigation found that during his tenure as a branch head and later as a Vice President of Nanhua Futures from 2015 to 2023, Zhang Zhe exploited his position to obtain improper benefits from the company by fabricating introducing intermediary links and service contracts.

The regulatory body stated that Zhang Zhe was deemed unsuitable and is prohibited from holding positions as a director, supervisor, senior manager, or branch head at a futures company, or from performing the duties of such roles, for a period of 10 years from the date of the decision.

Despite the release of the positive earnings forecast, Nanhua Futures' A-share price closed at a 13-month low on the following trading day. As of the market close on July 8, the company's A-shares ended at 17.2 yuan per share, down 1.32%, marking the lowest closing price since June 4, 2025. Its Hong Kong shares closed at HK$6.1 per share, up 1.49%.