Tonghuashun Q1 Profit Doubles; CSFC Reduces Stake After 8 Years

Tonghuashun (stock code 300033) reported Q1 2026 net profit of 256 million yuan, more than doubling year-over-year by 112.58%, according to the company’s first-quarter report released on April 22, 2024. Revenue reached 1.053 billion yuan, up 40.81% compared to the same period last year.

Q1 2026 Financial Performance

The company’s basic earnings per share reached 0.34 yuan, a 112.50% increase year-over-year. Total assets as of the end of Q1 2026 stood at 17.833 billion yuan, up 12.63% from 15.833 billion yuan at the end of 2025.

In its earnings announcement, Tonghuashun attributed the growth to continued capital market activity and increased user demand for financial information services. The company also noted that deeper integration of its products with large language model technology has improved product competitiveness, driving revenue increases.

2025 Full-Year Results

Tonghuashun’s strong performance continued from 2025, when the company achieved net profit of 3.205 billion yuan, up 75.79% year-over-year. Full-year 2025 revenue totaled 6.029 billion yuan, representing 44% growth. Basic earnings per share for 2025 were 5.96 yuan, up 75.81% year-over-year.

Total assets at the end of 2025 reached 15.833 billion yuan, up 44.24% from 10.977 billion yuan at the end of 2024. The company proposed a dividend distribution of 5.1 yuan per 10 shares plus a 4.0-share transfer bonus, totaling 2.742 billion yuan in cash dividends.

Business Segment Revenue Breakdown (2025)

Advertising and internet promotion services generated the largest share of revenue in 2025, accounting for 57.43% of total revenue, or 3.462 billion yuan, with year-over-year growth of 70.98%.

Value-added telecommunications services contributed 32.35% of total revenue, generating 1.951 billion yuan with 20.71% year-over-year growth. Software sales and maintenance services contributed 3.99 billion yuan (6.62% of total revenue, +12.12% YoY). Fund sales and other transaction fees generated 2.17 billion yuan (3.60% of total revenue, +14.24% YoY).

CSFC Stock Reduction — First in 8+ Years

A significant development emerged in Q1 2026: China Securities Finance Corporation (CSFC), a “national team” institution, reduced its Tonghuashun holdings by 3.0178 million shares, marking the first reduction since Q3 2017, according to Wind data.

CSFC’s stake declined from 1.10% (5.8875 million shares) at the end of 2025 to 0.53% (2.8697 million shares) at the end of Q1 2026.

Historically, CSFC first appeared in Tonghuashun’s top ten shareholders in Q2 2017 with a 0.95% stake (5.0911 million shares). In Q3 2017, CSFC reduced its position to 0.79%, cutting holdings by 4.2599 million shares. However, by Q4 2017, CSFC increased its stake back to 1.10% (5.8875 million shares), a level it maintained for over 8 years until the Q1 2026 reduction.

Shareholder Structure and Stock Performance

As of Q1 2026, three shareholders held stakes exceeding 5%: Yi Zheng (36.13%), Ye Qiongjiou (11.11%), and Hangzhou Kaisun Technology Co., Ltd. (8.83%).

It is worth noting that in September 2025, founder Yi Zheng announced a reduction plan—the first since the company’s 2009 IPO. However, on September 9, 2025, Tonghuashun announced that Yi Zheng had decided to terminate the plan early, citing various factors. The company stated at that time: “Since the company’s listing on December 25, 2009, the actual controller Yi Zheng has never reduced his shareholding over the past 16 years.”

At market close on April 22, Tonghuashun stock closed at 246.74 yuan per share, up 0.39% on the day.

Company Background

Founded in 2001 and headquartered in Hangzhou Future Science City, Tonghuashun is China’s first internet-based financial information services company to go public. The company is the only national information technology pilot program unit in the industry and currently employs approximately 5,000 people. It is a leading provider of internet financial information services in China and one of the largest suppliers of online securities trading systems.

Tonghuashun’s service platforms cover multiple customer segments in the securities market. On the institutional side, the company serves over 90% of domestic securities companies and has expanded to numerous public funds, private funds, banks, insurance companies, government agencies, research institutions, and listed companies.