Chinese People Holdings (0681.HK) Q2 2025 Earnings Report

Executive Summary - QQ2 2025 performance highlights a meaningful rebound in revenue with meaningful earnings growth supported by a favorable mix and a strong liquidity position. Revenue for the quarter was 614.0 million CNY, up on a year-over-year basis by 92.95% (YoY) and flat-to-very modest quarter-on-quarter growth (QoQ 100.00% as per provided metrics). Gross profit reached 74.7 million CNY, yielding a gross margin of 12.17%. EBITDA stood at 27.2 million CNY with an EBITDA margin of approximately 4.44%, while operating income was 14.8 million CNY (2.41% operating margin). Net income was 32.1 million CNY, driving a net margin of 5.23% and an EPS of 0.0036 CNY. A notable contributor to bottom-line profitability was a substantial “Other income” line of 29.3 million CNY, which more than offset the modest operating profitability, underscoring earnings quality that is partly driven by non-operating items.

The balance sheet remains exceptionally liquid. Cash and cash equivalents stood at 561.4 million CNY, with total cash and short-term investments of 741.4 million CNY. The company reported total debt of 92.0 million CNY and net debt of -469.4 million CNY, indicating a net cash position and ample liquidity to fund capex, working capital needs, or potential strategic opportunities. The current ratio is a comfortable 2.06 and the quick ratio 1.81, supporting resilience in a regulated, capital-intensive sector.

Valuation and competitive positioning suggest the stock trades at very modest multiples relative to regional peers (P/E ~0.89x, P/B ~0.088x; EV multiple negative). This unusual pricing reflects a combination of cash-rich balance sheet, relatively small market capitalization, and potential concerns about sustainability of non-operating income. Management commentary (where available) is not included in the provided data; hence, the forward-looking view focuses on sector dynamics, liquidity-driven optionality, and the substantial cash holdings that could support dividends, buybacks, or strategic investments if capital allocation policy evolves.