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 firms 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.
Despite the robust performance in the downstream industry, major listed companies in the securities IT sector (including Hundsun Technologies Inc., Flush, Fortune Trend, Vertex Software, Great Wisdom, and Goldentec) showed mixed performance results. Among them, Hundsun Technologies Inc. had the highest revenue in H1 2025, but its net profit was lower than Flush, and its revenue growth showed a year-over-year decline. Additionally, Hundsun Technologies Inc. had the highest accounts receivable among the six companies and the lowest accounts receivable turnover rate, raising concerns about operational efficiency.
**Profit Growth Without Revenue Growth: Top Four Business Segments All Declined Year-over-Year**
Research indicates that securities IT vendors are an important component of China's securities investment market ecosystem. The securities investment market primarily consists of investors, securities companies, exchanges, regulatory authorities, and securities technology service providers. Securities IT service providers mainly serve B2B clients such as securities companies and asset management institutions, providing software system support including trading systems. Representative companies include Hundsun Technologies Inc., Goldentec, Vertex Software, Fortune Trend, Flush, and Great Wisdom, with the first three companies primarily serving B2B financial institutions and the latter three mainly serving C2C investors.
According to available information, Hundsun Technologies Inc. entered the securities IT sector early, being established in 1995 with its initial main product being the independent stock trading system supplier New Profit Software. After 2006, Hundsun Technologies Inc. expanded its business scope from the four core areas of securities, finance, funds, and futures to markets including banking, insurance, trust, and exchanges.
According to the mid-year report, Hundsun Technologies Inc.'s business is divided into seven major segments: Wealth Technology Services, Asset Management Technology Services, Operations & Institutional Technology Services, Risk & Platform Technology Services, Data Services, Innovation Business, and Corporate Finance, Insurance Core & Financial Infrastructure Technology Services.
In H1 2025, Hundsun Technologies Inc. achieved revenue of 2.426 billion yuan, down 14.44% year-over-year, and realized adjusted net profit attributable to shareholders of 192 million yuan, up 41.89% year-over-year.
Hundsun Technologies Inc. attributed the revenue decline to market conditions affecting overall IT budget tightening among financial institutions, leading to reduced client demand and intensified market competition, with significantly extended client procurement processes including project initiation, decision-making, and acceptance phases. Additionally, the company proactively optimized its business structure by strategically contracting certain non-core businesses.
Looking at business segments, the top four revenue-generating businesses of Hundsun Technologies Inc. all declined year-over-year. In H1 2025, revenue from Wealth Technology Services, Asset Management Technology Services, Operations & Institutional Technology Services, and Risk & Platform Technology Services were 532 million yuan, 488 million yuan, 512 million yuan, and 144 million yuan respectively, down 3.13%, 32.35%, 7.17%, and 33.86% year-over-year respectively.
Among Hundsun Technologies Inc.'s seven business segments, only two segments showed slight revenue growth. Combined with the decline in the four largest segments, Hundsun Technologies Inc. was essentially in an across-the-board contraction mode in the first half of the year.
**Highest Accounts Receivable and Lowest Turnover Rate: Severe Operating Cash Flow Deficit**
Among the six securities IT service providers, Hundsun Technologies Inc., as an established company, enjoys first-mover advantages. In H1 2025, Hundsun Technologies Inc.'s revenue of 2.426 billion yuan ranked first among the six companies, but its net profit was lower than Flush. Flush's H1 2025 adjusted net profit attributable to shareholders was 484 million yuan, representing 251.79% of Hundsun Technologies Inc.'s corresponding figure of 192 million yuan.
From a net profit perspective, Hundsun Technologies Inc. is not only not the leader but also has a significant gap from the leader. While Hundsun Technologies Inc. and Flush have different specialized functions and products, it's undeniable that Hundsun Technologies Inc. has lower profit margins than Flush.
In H1 2025, Hundsun Technologies Inc.'s gross margin was 69.29%, lower than Flush's 86.65%; Hundsun Technologies Inc.'s net margin was 12.28%, lower than Flush's 28.85%.
Despite Hundsun Technologies Inc.'s large revenue scale, it also had the highest accounts receivable and lowest accounts receivable turnover rate. As of the end of H1 2025, Hundsun Technologies Inc.'s accounts receivable book value was 1.138 billion yuan, far exceeding second-ranked Goldentec. Hundsun Technologies Inc.'s H1 2025 accounts receivable turnover rate was 2.32 times, while Goldentec, Vertex Software, Great Wisdom, Flush, and Fortune Trend recorded 3.28 times, 3.05 times, 3.95 times, 40.97 times, and 3.33 times respectively.
Simultaneously, Hundsun Technologies Inc.'s accounts receivable as a percentage of total assets was also the highest among the six companies. As of the end of H1 2025, Hundsun Technologies Inc.'s accounts receivable represented 8.21% of total assets. The corresponding figures for Goldentec, Vertex Software, Great Wisdom, Flush, and Fortune Trend were 5.9%, 6.7%, 5.23%, 0.45%, and 0.91% respectively.
The highest accounts receivable and lowest accounts receivable turnover rate indicate operational efficiency issues at Hundsun Technologies Inc. to some extent.
**Most Severe Operating Cash Flow Deficit: Lowest Current and Quick Ratios**
For most companies, substantial accounts receivable can indirectly impact operating cash flow.
In H1 2025, Hundsun Technologies Inc.'s net cash flow from operating activities was -901 million yuan, severely diverging from its net profit attributable to shareholders of 261 million yuan.
Meanwhile, Hundsun Technologies Inc. had the most severe operating cash flow deficit. Flush, Fortune Trend, Goldentec, Great Wisdom, and Vertex Software recorded net cash flows from operating activities of 1.141 billion yuan, 11 million yuan, -43 million yuan, -96 million yuan, and -127 million yuan respectively.
Current ratio and quick ratio are important indicators for measuring a company's short-term debt repayment capability. In H1 2025, Hundsun Technologies Inc.'s current ratio and quick ratio were 1.15 and 0.98 respectively, ranking last among the six companies and significantly lower than second-to-last Goldentec's 2.55 and 2.26.
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