Overview of company’s profile:
Nanhua Futures Co. Ltd. [603093:CH] is a Chinese financial company that focuses mainly in operating of futures businesses. Some of the businesses conducted by the company are commodity futures brokerage, financial futures brokerage, futures investment, asset management, and fund distribution services. Through its subsidiary (Zhejiang Nanhua Capital Management Co., Ltd.) engages in other businesses such as the conducting of OTC derivatives business, basis trade, market making operations and other related businesses. The company’s business activities are vastly conducted within the Chinese domestic regions and overseas as well. Nanhua Futures was formed and incorporated in May 1996 while its headquarter is located at Hangzhou, China. The executive leader of the company is Luo Xufeng with up to 997 other employees currently working for the company.
Overview of major financials in Fy19 and beyond:
Since the last ten years, the company’s financial performance report has been steadily and consistently improving despite the increase in the number of companies operating in the financial business. The economic development and improvement of the rapid population growth is strongly propelling the futures business. The management of the company released its financial performance report for the Fy19 period highlighting strong improvement in most of the major financials of the company. The financial data that was reported by reuters reported that some of the major financials of the company performed as follows;
Total revenue: The financial result posted that the company’s total revenue during that period strongly increased to CNY9.51 billion which shows a strong growth by 51.84% year-on-year when compared and analyzed from the CNY4.58 billion that was reported in the Fy18’s financial result.
Total operating expenses: The financial data also revealed that the company’s total operating expenses increased strongly to CNY9.40 billion which shows a strong growth by 52.97% year-on-year when compared and analyzed from the CNY4.42 billion that was reported in the Fy18’s financial result.
Total debt: The report also showed that the company’s debt rate increased significantly to CNY1.15 billion which shows a strong growth by 29.73% year-on-year when compared and analyzed from the CNY814.20 million that was reported in the Fy18’s financial result.
Performance in 3Q20 period:
The company’s financial performance was not affected by the outbreak of the pandemic period as the revenue and other financials surged significantly. According to the 3Q20 financial report, the company’s revenue generated from business decreased significantly to CNY2.50 billion which shows a negative growth by 29.73% year-on-year when compared and analyzed from the CNY2.75 billion that was reported in the Fy18’s financial result. This performance still 34.43% below the CNY3.82 billion that was reported in the 3Q19’s financial data. Currently, the company is making plans on opening more branches in other Chinese regions that is not covered up by them.