In the first half of 2025, 150 securities firms achieved operating revenue of 251 billion yuan, up 23% year-over-year, and net profit of 112.3 billion yuan, up 40% year-over-year. The 42 listed securities companies collectively generated total operating revenue of 251.9 billion yuan in H1 2025, up 31% year-over-year, and achieved net profit attributable to shareholders of 104 billion yuan, up 65% year-over-year.
Against the backdrop of a thriving downstream industry, the performance of major listed companies in the securities IT sector varied significantly. Among six key companies analyzed (Hundsun Technologies, Hithink Royalflush Information Network Co.,Ltd., Fortune Trend, DingDian Software, Great Wisdom, and Goldeneagle Software), Hithink Royalflush Information Network Co.,Ltd. recorded the highest sales expenses and expense ratio in H1 2025, while Fortune Trend had the lowest. Additionally, Hithink Royalflush Information Network Co.,Ltd. was the only company to see its sales expense ratio increase, and it also maintained the highest asset-liability ratio at 33.64% in H1 2025.
**Highest Sales Expenses and Expense Ratio in H1; Sales Expense Growth Exceeds Revenue Growth**
Securities IT vendors are considered integral components of China's securities investment market ecosystem, which primarily consists of investors, securities companies, exchanges, regulatory institutions, and securities technology service providers. Securities IT service providers mainly serve B-end customers such as securities companies and asset management institutions, providing software system support including trading systems. Representative institutions include Hundsun Technologies, Goldeneagle Software, DingDian Software, Fortune Trend, Hithink Royalflush Information Network Co.,Ltd., and Great Wisdom, with the first three companies primarily serving B-end financial institutions and the latter three focusing on C-end investors.
According to the half-year report, Hithink Royalflush Information Network Co.,Ltd.'s main business involves providing various AI-based software products and system maintenance services, financial data services, and intelligent promotion services to institutional clients, while offering AI-based financial information, investment analysis tools, and wealth management product trading services to individual investors.
In H1 2025, Hithink Royalflush Information Network Co.,Ltd. achieved operating revenue of 1.779 billion yuan, up 28.07% year-over-year, and net profit attributable to shareholders of 502 million yuan, up 38.29% year-over-year. Notably, Hithink Royalflush Information Network Co.,Ltd.'s H1 net profit attributable to shareholders was the highest among the six securities IT service providers.
Despite Hithink Royalflush Information Network Co.,Ltd.'s strong H1 performance, its sales expenses and sales expense ratio were both the highest among the six companies. In H1 2025, Hithink Royalflush Information Network Co.,Ltd.'s sales expenses totaled 335 million yuan, with a sales expense ratio of 18.82%, significantly higher than the average sales expense ratio of 10.24% for the other five companies.
The highest sales expense ratio, far exceeding peer companies, indicates that Hithink Royalflush Information Network Co.,Ltd.'s performance is most dependent on marketing activities. This tendency is further evidenced by the fact that the company's sales expense growth exceeded its revenue growth rate during the same period.
In H1 2025, Hithink Royalflush Information Network Co.,Ltd.'s sales expenses reached 335 million yuan, up 38.15% year-over-year, surpassing the revenue growth rate of 28.07% for the same period.
In H1 2025, Hithink Royalflush Information Network Co.,Ltd.'s asset-liability ratio was 33.64%, also the highest among the six companies. Hundsun Technologies, Goldeneagle Software, Great Wisdom, DingDian Software, and Fortune Trend had asset-liability ratios of 31.36%, 27.74%, 23.11%, 14.36%, and 4.37%, respectively.
**Is 8.6 Billion Yuan in Cash Sitting Idle?**
As of the end of H1 2025, Hithink Royalflush Information Network Co.,Ltd. held 8.618 billion yuan in monetary funds (with zero trading financial assets), accounting for 83.41% of total book assets.
This means that over 80% of Hithink Royalflush Information Network Co.,Ltd.'s book assets consist of cash. In H1 2025, the company's interest income was 70 million yuan. With monetary funds of 9.2 billion yuan at the beginning of 2025, the H1 2025 monetary fund yield was approximately 0.79% (calculated as: yield = interest income / (beginning monetary funds + ending monetary funds) / 2).
If the 0.79% yield is annualized, it would be less than 1.6%. Is this utilization rate too low?
Another securities IT service provider, DingDian Software, held 130 million yuan in monetary funds and 819 million yuan in trading financial assets as of the end of H1 2025, totaling 949 million yuan. At the beginning of 2025, its total broad monetary funds were 1.301 billion yuan, with an average of approximately 1.06 billion yuan in broad monetary funds.
In H1 2025, DingDian Software's combined interest income, net investment income, and net fair value changes totaled 13 million yuan, resulting in a broad monetary fund yield of approximately 1.23% and an annualized yield of about 2.46%, exceeding Hithink Royalflush Information Network Co.,Ltd.'s 1.58%.
Hithink Royalflush Information Network Co.,Ltd.'s lower monetary fund yield compared to DingDian Software is primarily due to the company having zero trading financial assets (including wealth management products and securities investments). With over 8.6 billion yuan in monetary funds, why doesn't Hithink Royalflush Information Network Co.,Ltd. purchase wealth management products to improve its monetary fund yield? Whether the company's substantial funds are underutilized remains to be verified.
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