Executive Summary
Jinshang Bank delivered a robust QQ2 2025 performance with pronounced year-over-year expansion across revenue, operating income, and net income. Revenue reached 1.9607 billion CNY, up 81.36% from the prior year, while operating income rose 164.05% to 1.0999 billion CNY and net income climbed 190.43% to 1.0524 billion CNY. The quarter benefited from strong earnings momentum and a highly favorable operating margin of approximately 56.1%, underpinning a net margin around 53.7%. Despite the strong profitability, return on equity remains modest at 3.68%, reflecting the bank’s conservative capital base and the very low leverage profile (debt ratio ~3.92%). Valuation appears highly attractive with a price-to-book of ~0.27 and a price-to-earnings around 1.84, signaling potential upside if ROE can be enhanced and shareholder returns meaningfully recognized. Management commentary is not present in the provided transcript data, limiting direct quotes; however, the results imply solid earnings power with limited downside risk from leverage. The absence of a dividend yield (0%) suggests capital reallocation could be a consideration in future periods. Overall, the QQ2 2025 results position Jinshang Bank as a low-leverage, high-margin regional bank with meaningful upside if asset quality, fee-based growth, and capital return strategies align with investor expectations.
Key Performance Indicators
Key Insights
Revenue and profitability: Revenue 1,960,732,000 CNY; YoY +81.36%; QoQ +0.00%. Gross profit 1,960,732,000 CNY; gross margin 100.00% (per data) with cost of revenue not disclosed. Operating income 1,099,888,000 CNY; YoY +164.05%; QoQ +0.00%; Operating margin 56.10%. Net income 1,052,365,000 CNY; YoY +190.43%; QoQ +0.00%; Net margin 53.67%; Earnings per share (EPS) 0.1802 CNY; YoY +190.18%; QoQ +0.00%. Weighted average shares outstanding 5,846,472,222; Diluted 5,838,650,000.
Profitability and eff...
Financial Highlights
Revenue and profitability: Revenue 1,960,732,000 CNY; YoY +81.36%; QoQ +0.00%. Gross profit 1,960,732,000 CNY; gross margin 100.00% (per data) with cost of revenue not disclosed. Operating income 1,099,888,000 CNY; YoY +164.05%; QoQ +0.00%; Operating margin 56.10%. Net income 1,052,365,000 CNY; YoY +190.43%; QoQ +0.00%; Net margin 53.67%; Earnings per share (EPS) 0.1802 CNY; YoY +190.18%; QoQ +0.00%. Weighted average shares outstanding 5,846,472,222; Diluted 5,838,650,000.
Profitability and efficiency: Return on equity 3.68%; return on assets 0.27%; asset turnover 0.00505; fixed asset turnover 1.340; gross margin 100.0% (data indicates full gross profit relative to revenue; interpret with caution given missing cost-of-revenue details). Operating cash flow per share 0.354; free cash flow per share 0.347; cash per share 0.928. Dividend payout ratio effectively 0.00%; dividend yield 0.00%. Price-to-book 0.271; price-to-earnings 1.837; price-to-sales 3.94; price-to-operating cash flow 3.73; price-to-free cash flow 3.82.
Balance sheet and cash flow: Debt ratio 0.0392 (very low leverage); debt-to-equity ~0.532; long-term debt-to-capitalization 0.347; cash conversion and working capital metrics are not fully disclosed. Operating cash flow strength supports ability to fund ongoing lending activity and potential capital allocation changes. The equity multiplier is high at 13.59, indicating a sizable equity base relative to net assets (reflecting low leverage and conservative capitalization).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.96B |
81.36% |
0.00% |
| Gross Profit |
1.96B |
81.36% |
0.00% |
| Operating Income |
1.10B |
164.05% |
0.00% |
| Net Income |
1.05B |
190.43% |
0.00% |
| EPS |
0.18 |
190.18% |
0.00% |
Key Financial Ratios
operatingProfitMargin
56.1%
operatingCashFlowPerShare
$0.35
freeCashFlowPerShare
$0.35
Management Commentary
Note: The earnings transcript data is not provided in the input. As a result, management quotes and themes could not be extracted. If this data becomes available, quotes can be added here grouped by themes such as strategy, operations, and market conditions. Potential themes to monitor in future calls include: (1) asset quality and provisioning levels, (2) loan growth targets and deposit mobilization, (3) fee-based income expansion (treasury, wealth management, and corporate services), (4) capital allocation and potential return of capital to shareholders, and (5) regulatory and macroeconomic considerations affecting regional banks in China.
Forward Guidance
No formal forward guidance was provided in the supplied data for QQ2 2025. Based on the quantitative performance and current macro context, the bank could face a path of moderate loan growth coupled with stable net interest income if funding costs remain contained. Potential drivers include: continued expansion of corporate banking and SME lending in Shanxi, growth in treasury and wealth management-related income, and efficiency gains from SG&A optimization. Risks include a muted credit cycle in China, regulatory tightening, and potential pressure on fee income if competition increases. Investors should monitor management commentary on loan growth targets, deposit mix, reserve levels, and any stated dividend policy or capital return plans to gauge potential upside beyond the current valuation multiple.