Just before the National Day holiday, Shenwan Hongyuan Group Co., Ltd. entered into a strategic cooperation agreement with Shanghai Rural Commercial Bank.

Senior executives from both organizations attended the signing ceremony, including Shanghai Rural Commercial Bank Chairman Xu Li and Shenwan Hongyuan Group Chairman Liu Jian.

In his remarks, Chairman Liu Jian emphasized that as a state-owned financial enterprise rooted in Shanghai, Shenwan Hongyuan Group aims to leverage its comprehensive "research + investment + investment banking" professional services. The company plans to collaborate with Shanghai Rural Commercial Bank's regional expertise to create synergies, focusing particularly on fintech cooperation and actively participating in the integrated development of the Yangtze River Delta region.

The East China region remains a priority for Shenwan Hongyuan Group. According to its 2025 interim report, the company operates 142 securities branches in East China, generating revenue of 2.217 billion yuan during the period, representing a 39.08% year-over-year increase. Operating profit in the region reached 1.434 billion yuan, surging 111.84% compared to the previous year.

From a regional distribution perspective, Shenwan Hongyuan Group primarily focused on expanding its North China footprint in the first half of the year. The number of securities branches in this region grew from 14 in the first half of 2024 to 17 in the first half of 2025, adding three new locations.

However, profitability in North China has been disappointing. During the first half, the region generated revenue of 179 million yuan, declining 14.17% year-over-year, making it the only region to experience revenue contraction. Operating profit stood at 77.95 million yuan, also falling 14.98% compared to the same period last year.

Nevertheless, regional adjustments have not impacted Shenwan Hongyuan Group's overall profitability performance.

In the first half, the company achieved consolidated operating revenue of 11.695 billion yuan, up 44.44% year-over-year, while net profit attributable to shareholders reached 4.284 billion yuan, representing a substantial 101.32% increase.

Fee and commission income totaled 3.683 billion yuan, accounting for 31.49% of total revenue and growing 29.58% year-over-year. This increase primarily resulted from market factors that boosted net fee income from brokerage services and investment banking operations.

Moreover, Shenwan Hongyuan Group's investment income surged dramatically. The company recorded investment income of 7.71 billion yuan in the first half, an increase of 5.752 billion yuan compared to the previous year, representing growth of 293.76%. This substantial gain was mainly attributed to increased profits from disposing of trading financial assets.

However, the company reported negative fair value changes. Fair value change gains and losses amounted to negative 29.923 million yuan during the period, contrasting with positive 3.229 billion yuan in the same period last year.

As a leading securities firm in the industry, Shenwan Hongyuan Group excels in investment banking, research, and consulting services, though performance varies across its controlled subsidiaries.

During the first half, Shenwan Hongyuan Securities, responsible for securities operations, achieved net profit of 4.727 billion yuan. In contrast, Shenwan Hongyuan Securities Underwriting and Sponsorship, handling securities underwriting and sponsorship services, reported a net loss of 15.6149 million yuan. Shanghai Shenyin Wanguo Securities Research Institute, focused on securities investment consulting, posted a net loss of 8.6663 million yuan.

Alongside revenue growth, Shenwan Hongyuan Group's operating expenses also increased. Operating expenses totaled 5.679 billion yuan in the first half, up 20.36% year-over-year. Business and management expenses reached 5.419 billion yuan, rising 18.62% compared to the previous year.

As of June 30, 2025, Shenwan Hongyuan Group employed 11,552 staff members (including dispatched workers and securities representatives), representing an increase of five employees from the end of the previous year.

Analysis reveals that during the first half of 2025, the total pre-tax compensation for directors, supervisors, and senior management at Shenwan Hongyuan Group was 4.9619 million yuan, down 1.5962 million yuan from 6.5581 million yuan in the same period last year.

The report indicates that final compensation figures are still under review, with remaining portions to be disclosed once confirmed.