Shouhui Group (2621) H2 2025 earnings summary

Executive summary

• 2025 revenue rose 5.9% YoY to RMB1,469.2m; reported profit was RMB793.6m versus a RMB135.6m loss, while adjusted profit fell 17.1% to RMB200.2m.

• FYP increased 49.9% to over RMB4.5bn and GWP rose 37% to RMB11.2bn; dividend-type product FYP reached RMB1bn, up 341.5%.

• The reported profit swing primarily reflected a RMB619.0m gain from remeasurement of investor financial instruments; IPO conversion transferred those instruments from liabilities to equity.

Financial highlights

• Revenue was RMB1,469.2m, up 5.9% YoY; cost of revenue rose 14.9% to RMB986.4m, outpacing revenue growth.

• Gross profit declined 8.7% to RMB482.9m; gross margin fell to 32.9% from 38.1%.

• Operating profit was RMB224.0m versus RMB256.3m; reported profit was RMB793.6m versus a RMB135.6m loss, including the instrument remeasurement gain.

• Adjusted profit, excluding instrument remeasurement, share-based compensation and listing expenses, decreased 17.1% to RMB200.2m from RMB241.6m.

• Basic EPS was RMB4.70 versus a RMB1.68 loss; diluted EPS was RMB1.00 versus a RMB1.68 loss.

Outlook and guidance

• 2026 priorities include expanding customized products, increasing dividend-product sales, broadening corporate insurance offerings and growing corporate-client premiums.

• Plans include expanding offline branches and agent recruitment, deepening online-offline marketing, and extending partnerships with agencies, brokerages and media/KOL channels.

• Technology priorities include upgrading transaction, marketing and quality systems and expanding AI underwriting, advisory and document-parsing applications; overseas technology and insurance operations will also be explored.