Zheshang Securities (601878) Q2 2025 earnings summary

Executive summary

• Achieved net profit attributable to shareholders of RMB 1.15 billion in H1 2025, up 46.54% year-over-year, with total revenue down 23.7% to RMB 6.11 billion compared to the same period last year.

• Completed acquisition of a controlling stake in Guodu Securities, consolidating its results and expanding business scale.

• Maintained robust capital adequacy and risk control metrics, with net capital at RMB 25.4 billion and risk coverage ratio at 341.6%.

• Excluding subsidiary spot sales, operating income grew 50.26% year-over-year.

Financial highlights

• Operating profit reached RMB 1.55 billion, a 61.36% increase year-over-year.

• Net profit after deducting non-recurring items was RMB 1.13 billion, up 45.87% year-over-year.

• Earnings per share increased to RMB 0.25, up 25% year-over-year.

• Total assets reached RMB 199.15 billion, up 29.25% from the previous year-end.

• Net cash flow from operating activities improved to -RMB 1.02 billion from -RMB 3.03 billion a year ago.

Outlook and guidance

• Management expects to achieve the “14th Five-Year Plan” targets, leveraging strategic initiatives and market opportunities.

• Will continue to focus on expanding core businesses, risk management, and digital transformation.

• The company capitalized on active trading markets in H1 2025 to achieve strong operational results.