18% revenue growth, 43% net profit growth—what gives Huaxin Securities the speed to outpace the industry?

Ask AI · How specifically can AI strategies empower the growth of wealth management businesses?

In proprietary business, Hualin Securities adheres to a steady approach, with outstanding performance in fixed income investments.

Produced by | Zhongfang Network

Reviewed by | Li Xiaoyan

Under the dual waves of deepening reforms in the capital market and the empowerment of new productive forces, the securities industry is accelerating its departure from粗放扩张 (extensive expansion) and moving toward a new stage of high-quality development. As a benchmark for differentiated transformation among small and medium-sized brokerages, Hualin Securities (002945.SZ) delivered an impressive annual report for 2025 on March 31, 2026: revenue and net profit both increased significantly, wealth management core business remained strong, AI brokerage strategies took effect, diversified businesses collaborated actively, driven by both fintech and compliance for稳健 (steady) growth, forging a distinctive development path.

In 2025, Hualin Securities achieved total operating revenue of 1.7B yuan, an 18.34% increase year-over-year; net profit attributable to shareholders was 506 million yuan, a surge of 43.35%, with profit growth far exceeding revenue growth, significantly improving profitability efficiency. Basic earnings per share were 0.19 yuan, up 46.15% year-over-year; weighted average return on net assets was 7.28%, an increase of 1.85 percentage points year-over-year, with profitability and shareholder returns strengthening in tandem.

From an industry perspective, in 2025, 150 brokerages collectively saw a 31.20% increase in net profit year-over-year, with Hualin Securities’ 43.35% profit growth notably outperforming the industry average. Particularly impressive is that the company’s net profit excluding non-recurring gains and losses reached 465 million yuan, a 24.29% increase year-over-year, indicating solid and steady core business growth without relying on non-recurring gains. Meanwhile, the company continued its tradition of high dividend payout, proposing a dividend of 0.57 yuan per 10 shares (tax included), totaling 154 million yuan, accounting for 30.40% of net profit attributable to shareholders. Maintaining a dividend ratio above 30% for six consecutive years, it demonstrates a commitment to “finance for good,” reflecting confidence in long-term value.

Wealth management, as Hualin Securities’ “ballast stone,” contributed 1.15 billion yuan in revenue in 2025, a 28.02% increase, accounting for 68% of total revenue. Operating profit margin rose sharply from 42.19% to 51.69%, leading the industry in profitability quality. Business growth showed a trend of simultaneous online and offline development, with retail and institutional sectors exploding in both directions.

On the retail side, online wealth management revenue reached 475 million yuan, a 31% increase; client asset scale grew 31% year-over-year; new clients increased by 26%, with digital customer acquisition and retention capabilities continuously enhanced. Offline, 101 branches achieved a 93% profitability rate, with regional service network efficiency significantly improved, breaking the industry pain point of traditional brokerages’ offline branches being difficult to profit.

On the institutional side, brokerage business stock and fund trading volume reached 3.42 trillion yuan, a 60% surge year-over-year, with market share steadily rising. The company focused on institutional and high-net-worth client needs, building professional trading systems such as Tianxun QMT and non-convex intelligent trading algorithms. Trading volume from institutional and algorithmic trading soared 128% year-over-year, becoming a core growth driver for brokerage business. Transitioning from a “commission channel” to a “professional trading service provider,” Hualin Securities successfully captured the blue ocean of institutional business.

2025 was a key year for the implementation of Hualin Securities’ “AI brokerage” strategy. Centered on its wholly owned subsidiary Dolphin Technology, which has over 80% of its staff in tech roles, the company developed its own large-scale financial model, constructing a full matrix of intelligent systems such as Dolphin Intelligence Body and Ask Stock Intelligence Body, promoting service mode upgrades from “people seeking services” to “AI proactive companionship.”

The upgraded Dolphin App enables three-step rapid account opening, covering trading, wealth management, social scenes, greatly lowering the threshold for financial services. Simultaneously, the “Hualin Smart Investment” brand, supported by AI large models, offers integrated “investment research - asset allocation - trading” services, with improvements in both precision and efficiency of robo-advisors. Thanks to fintech innovation, the company received multiple industry awards, including “Annual Excellent AI Innovation Brokerage” and “Digital Practice Award for Securities Industry Newcomer,” with its transformation achievements gaining authoritative recognition.

To strengthen core AI capabilities, the company’s electronic equipment operating expenses in 2025 reached 439 million yuan, a 69.11% increase, with重点投入 (key investments) in large model R&D and intelligent computing centers. Although high-density tech investments temporarily compress profits, they lay a solid technological foundation for long-term growth. In 2026, the company will further deepen AI empowerment, promoting generative AI coverage across the entire wealth management chain, building a differentiated core barrier.

In proprietary business, Hualin Securities maintains a稳健 (steady) style, with outstanding fixed income performance, focusing on interest rate bonds and utilizing quantitative tools. As an interbank bond market maker, the annual trading volume of bonds exceeded one trillion yuan. Equity investments focus on high-dividend strategies, effectively controlling drawdowns, maintaining stability amid market volatility.

Alternative investments became a major highlight, with subsidiaries Hualin Innovation focusing on strategic national fields, investing in 12 leading industry companies and 1 industrial fund, totaling 34.2k yuan. In 2025, fair value changes in alternative investments increased significantly, driving the company’s “other” business income to grow over 11 times year-over-year, becoming the second growth curve after wealth management.

In risk control, the company’s net capital was 5.48 billion yuan, with risk coverage ratio at 373.25% and liquidity coverage ratio at 392.92%, all well above regulatory standards, with no重大风险事件 (major risk events) throughout the year. After the earthquake in Shigatse, Tibet, the company promptly donated 1B yuan in funds and supplies, and invested over 6 million yuan in rural revitalization, balancing economic benefits and social responsibility.

Despite impressive results, there are still concerns about Hualin Securities’ development. First, proprietary business is affected by market fluctuations, with revenue down 28.32% in 2025, indicating room for improving stability. Second, AI transformation requires huge investments; the 439 million yuan in tech spending short-term compresses profits, and scaling AI into revenue will take time. Third, industry competition intensifies, with leading brokerages leveraging capital and channels to squeeze smaller firms, requiring Hualin Securities to continuously strengthen its differentiated advantages.

2026 marks the foundation year of Hualin Securities’ new three-year plan. Anchored on the “AI brokerage” core strategy, the company will comprehensively build its AI core capability system. On one hand, it will deepen the Dolphin App ecosystem, iterating AI robo-advisors and Hualin Smart Investment functions, expanding AI applications in research, asset allocation, account diagnostics, and other scenarios; on the other hand, it will focus on improving core business quality and efficiency, strengthening the integration of technology and business, adhering to compliance bottom lines, and creating core competitiveness through a differentiated path.

At this critical juncture of industry transformation, Hualin Securities uses AI as wings and compliance as the foundation, making breakthroughs in wealth management, fintech, and alternative investments. It not only seizes industry benefits from market recovery but also forms unique advantages through forward-looking strategic deployment. In the future, as AI technology is deeply empowered and business structures continue to optimize, the company is expected to steadily advance along the path of high-quality development, providing a “Hualin model” for the transformation of small and medium-sized brokerages.