ZhongAn Online P C (6060.HK) Q3 2024 Earnings Report

ZhongAn Online P&C Insurance Co. Ltd. delivered a robust QQ3 2024 operating performance, with revenue of 8.9075 billion CNY and an impressive operating income of 7.7784 billion CNY, translating into an operating margin of 87.32%. This reflects strong core underwriting profitability and favorable mix of insurance products. However, the reported net income was 273.99 million CNY, hampered by a substantial non-operating item: total other income/expenses net of -7.3709 billion CNY. After tax, the company reported net income of 273.99 million CNY, masking the strength of its core business. YoY, revenue rose 16.7%, and operating income surged roughly 4,557% driven by the operating scale, while net income declined by 85.8% YoY due to the large non-operating burn, with a QoQ rebound in net income of 887.96% as the prior period benefited from different non-cash items. Free cash flow remained healthy at 475.68 million CNY, and liquidity stayed solid with cash and cash equivalents of about 1.467 billion CNY and a current ratio of 1.084x. The balance sheet shows a total asset base of 45.285 billion CNY, with long-term debt of 6.912 billion CNY and net debt of 5.445 billion CNY, supported by a substantial accumulated other comprehensive income of 16.996 billion CNY. Management commentary is not included in the provided transcript, so qualitative guidance and quotes from the earnings call are not captured here. Overall, investors should focus on the resilience of the core underwriting business and monitor the trajectory of non-operating items and OCI exposures that can materially influence reported earnings.