Tianfeng Securities: The administrative penalty decision has been implemented, with comprehensive and effective rectification, paving the way for steady development and a new chapter.

On March 13, Tianfeng Securities officially announced that it received the “Administrative Penalty Decision” issued by the Hubei Regulatory Bureau of the China Securities Regulatory Commission. The penalty results are consistent with the previous “Notice of Administrative Penalty” and mark the full completion of the regulatory procedures. The company sincerely accepts and resolutely implements the decision. This signifies the complete resolution of historical risks, thorough rectification work has been effectively carried out, and operations are stable and orderly. The company is now ready to move forward and enter a new stage of steady development.

This penalty is part of a comprehensive cleanup of historical issues caused during the period of private shareholders. Since the regulatory investigation began, the company has actively cooperated, clarified facts, and taken responsibility. With the formal issuance of the administrative penalty decision, all regulatory procedures are concluded, and the long-standing burdens that restricted the company’s development have been fully cleared. This cuts ties with past risks and removes key obstacles to high-quality growth.

Since the state-owned assets took control, Tianfeng Securities has focused on governance restructuring, systematically rebuilding its compliance and risk control system: strengthening the Party Committee’s preliminary research, improving the “Three Major and One Large” decision-making mechanism; establishing a compliance review system covering all business lines, and enhancing the transparent management of subsidiaries; strengthening compliance culture, and ensuring all employees bear responsibility for compliance. These efforts have been completed on schedule and have shown effective results, significantly improving the company’s compliance operations.

Market analysts note that this event is an important milestone in Tianfeng Securities’ risk cleanup and has clear industry demonstration significance. Regulatory authorities have imposed penalties in accordance with laws and regulations, with a clear focus on “pursuing the primary culprits and punishing accomplices,” demonstrating a firm commitment to strengthening supervision of securities institutions and cracking down on illegal activities. It also further clarifies the rigid requirements for industry compliance and standardized operations. Relying on state-controlled ownership to achieve governance restructuring and risk clearance, Tianfeng Securities provides a practical reference for similar institutions in the industry to resolve historical burdens and improve governance systems, promoting a shift from passive rectification to proactive compliance, and from scale expansion to quality improvement. A securities analyst stated that risk clearance has opened a new cycle for valuation recovery for Tianfeng Securities, and its investment value is expected to regain market attention.

Currently, Tianfeng Securities has a clear equity structure, effective governance, and normal main business operations, with no substantial impact from this penalty. The company expects to achieve a net profit attributable to shareholders of between 125 million and 185 million yuan in 2025, successfully turning losses into profits—its best performance in recent years. In 2025, the company plans to complete a 4 billion yuan private placement, significantly strengthening its capital base. Under the main theme of compliant operation, the company continues to focus on its core business, with its ability to serve the real economy steadily improving—over the past three years, it has provided nearly 930 billion yuan in financing to the real economy. With strong support from its controlling shareholder, Hongtai Group, Tianfeng Securities has achieved steady progress in performance recovery, capital reinforcement, and serving the real economy, with high-quality transformation and development showing clear results.

Looking ahead, Tianfeng Securities will take this resolution of historical risks as a new starting point, uphold the core principles of compliant and steady development, and continuously improve corporate governance, compliance, risk control, and professional service levels. The company will focus on its main responsibilities, actively integrate into the overall construction of Hubei as a strategic hub, accelerate the development of a financial support system for high-quality growth in Hubei, and contribute Tianfeng’s strength to Hubei’s strategic rise in central China.