Q4 Earnings Surge Accounts for 62% of Annual Profit
Tonghuashun's 2025 financial performance was overwhelmingly driven by a powerful fourth quarter. The company generated 2.768 billion yuan in revenue and 1.999 billion yuan in net profit in Q4 alone, representing 46% of annual revenue and 62% of annual profit, respectively. This performance indicates a dramatic acceleration, with Q4's net profit being 1.8 times the combined total of the first three quarters. The surge aligns with the renewed activity in the A-share market that began in late 2024 and gained momentum through 2025, boosting demand for Tonghuashun's advertising, value-added services, and fund distribution businesses.
The firm's cash generation mirrored this trend, with operating activities producing a net cash flow of 3.774 billion yuan for the year, a 63% increase. The company's return on equity (ROE) also strengthened significantly, rising 13.74 percentage points to 38.54%, underscoring improved profitability.
Company Announces Dividend of 51 Yuan Per 10 Shares
In response to its strong earnings, Tonghuashun announced a substantial shareholder return plan. The company proposed a cash dividend of 51 yuan (inclusive of tax) for every 10 shares held. Alongside the cash payout, it plans to issue 4 new shares for every 10 existing shares via a capital reserve transfer. This move distributes a significant portion of the year's record profits directly back to investors. The dividend follows a 75.81% increase in basic earnings per share, which climbed to 5.96 yuan from 3.39 yuan in 2024, placing Tonghuashun among the top-tier A-share technology companies for shareholder returns.
AI Strategy and Dual-Client Model Drive Growth
Tonghuashun's growth is supported by its dual-pronged strategy targeting both institutional and retail clients, reinforced by advancements in artificial intelligence. For institutional clients, the company's iFinD terminal has enhanced its data processing and report generation capabilities. For retail users, the 'WenCai' AI investment assistant has been upgraded, improving the precision of its automated Q&A and strategy tools. The company is also deepening its AI expertise by developing its own financial large language model and collaborating with academic institutions. This focus on technology, combined with a highly concentrated ownership structure where management holds over 65%, ensures strategic consistency and a strong alignment of interests with shareholders.
