Zheshang Securities (601878) Q4 2025 earnings summary

Executive summary

• Achieved record financial results in 2025, with revenue and net profit reaching historical highs, driven by robust growth across core business lines and successful integration of newly acquired subsidiaries.

• Completed the acquisition of a controlling stake in Guodu Securities, expanding business scale and market influence.

• Maintained a strong focus on serving the real economy, supporting over ¥1,100 billion in financing for enterprises through equity, bonds, and asset securitization.

• Enhanced digital transformation and innovation, launching AI-driven platforms and expanding into new business areas such as cross-border wealth management and options market making.

Financial highlights

• Operating revenue for 2025 was ¥8.84 billion, up 35.95% year-over-year; net profit attributable to shareholders was ¥2.41 billion, up 24.87%.

• Total assets at year-end reached ¥224.81 billion, a 45.90% increase from the previous year.

• Basic and diluted EPS were both ¥0.53, up from ¥0.49 and ¥0.46, respectively, in 2024.

• Return on equity (ROE) was 6.67%, with a cash dividend payout ratio of 31.96%.

• Operating cash flow was -¥3.29 billion, mainly due to increased lending and other operating outflows.

Outlook and guidance

• 2026 will focus on high-quality growth, digital innovation, and deepening integration of acquired businesses.

• Plans to further strengthen core business lines, expand digital and AI-driven services, and enhance risk management.

• Will continue to support national strategies, technological innovation, and inclusive finance.