EPS of $-0.13 decreased by 155.3% from previous year
Gross margin of 100.0%
Net income of -27.02M
"" -
Bank of Jiujiang Co Ltd (6190.HK) QQ2 2025 Results – Revenue Decline Amid Expense Surge with Margin Pressures
Executive Summary
- Q2 2025 revenue of 549.05 million CNY and gross profit of 549.05 million CNY imply a reported gross margin of 100%, but cost-of-revenue data is not disclosed, suggesting a data quality anomaly or a quarter with unusual accounting. The quarter was dominated by a substantial rise in operating expenses, which led to an operating loss of 828.94 million CNY and a net loss of 27.02 million CNY.
- The results reflect a dramatic QoQ deterioration in profitability, with Q1 2025 showing positive earnings (net income of 391.02 million CNY in the quarterly dataset) and Q2 2025 swinging to a net loss. On a YoY basis, net income declined by about 120.8%, while revenue fell roughly 23% from the prior-year period, signaling meaningful earnings volatility and a fragile earnings base for a regional lender.
- From a valuation and liquidity perspective, the stock trades with a very low price-to-book (0.0182x) and has a reported cash per share of 53.02 CNY, suggesting a large perceived cushion relative to market price if profitability improves. However, the firm also reports a negative net margin (-4.92%) and a negative operating margin (-1.51x), underscoring structural earnings pressure. The balance-sheet indicators in the dataset show zero debt ratios, a feature that warrants closer scrutiny given the bank’s operating losses and cash generation signals.
- Management commentary is not captured in the provided data, and no forward guidance was disclosed in the QQ2 2025 data. Investors should monitor cost discipline, loan growth with credit quality, capital adequacy, and funding stability as the primary drivers of the near-term trajectory for Bank of Jiujiang.
Revenue and profitability snapshot (Q2 2025 vs prior periods)
- Revenue: 549,052,000 CNY; YoY: -23.25%; QoQ: 100.00%
- Gross Profit: 549,052,000 CNY; Gross Margin: 100.00%; YoY: -23.25%; QoQ: 100.00%
- Operating Income: -828,938,000 CNY; Margin: -1.51x; YoY: large negative swing (data shows -5060.06%); QoQ: -100.00%
- Net Income: -27,019,000 CNY; Net Margin: -4.92%; YoY: -120.79%; QoQ: -100.00%
- EPS: -0.13 CNY; Weighted Avg Shares: 211,927,022; Diluted EPS: -0.13 CNY
- Cash per Share: 53.02 CNY; Price to Book: 0.0182x; P/E (negative earnings): -3.44x; Net Profit Margin: -4.92%
- Asset Turnover: 0.00211x; Operating Cash Flow per Share: 0.00 (not reported); ROE: -0.13%; ROA: -0.01%
Notes:
- Data quality caveat: several lines (e.g., cost of revenue, certain line items) are missing or not disclosed in the presented dataset, which constrains precise interpretation of margins and cost structure. The 100% gross margin with null cost-of-revenue commonly signals an incomplete reconciliation in the disclosure or an unusual quarter.
- The “four quarters” data show a large quarter-to-quarter swing (Q1 2025 positive net income; Q2 2025 negative), underscoring earnings volatility for a regional lender in the current environment.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
549.05M
-23.25%
100.00%
Gross Profit
549.05M
-23.25%
100.00%
Operating Income
-828.94M
-5 060.06%
-100.00%
Net Income
-27.02M
-120.79%
-100.00%
EPS
-0.13
-155.32%
-100.00%
Key Financial Ratios
grossProfitMargin
100%
operatingProfitMargin
-151%
netProfitMargin
-4.92%
returnOnAssets
-0.01%
returnOnEquity
-0.13%
priceToBookRatio
0.02
priceEarningsRatio
-3.44
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript was provided in the dataset. Consequently, there are no management quotes or theme-based highlights to extract from a transcript in this file.
—
—
Forward Guidance
There is no explicit forward guidance included in the QQ2 2025 filing. Given the material margin compression and a substantial rise in operating expenses, near-term visibility hinges on:
- Cost discipline and SG&A rationalization to restore operating profitability.
- Revenue stability and growth in core banking activities (retail, SME, and corporate lending) with attention to credit quality.
- Balance-sheet resilience through capital adequacy and liquidity management in a shifting rate and funding environment.
- Digital channel optimization to improve efficiency and customer acquisition costs.
Overall, investors should monitor quarterly progression in operating expenses, any disclosed loan loss provisions or credit quality signals, and changes in capital and funding structure that could sustain an earnings recovery or further deterioration.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
6190.HK Focus
1.00%
-1.51%
-0.13%
-3.44%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Base-case view: The stock trades at an exceptionally low multiple to book value and presents a potential value opportunity if the bank completes meaningful cost reductions and stabilizes revenue growth. The near-term sequence shows a sharp Q2 2025 profitability deterioration despite a large cash cushion, implying the current valuation reflects earnings risk and data gaps more than an imminent turnaround.
- Catalysts to watch: (1) evidence of SG&A and cost-of-revenue normalization, (2) any improvement in quarterly revenue consistency across core banking lines, (3) disclosed credit provisioning and asset-quality signals, (4) capital adequacy and liquidity metrics in subsequent filings.
- If management demonstrates discipline on cost control and stabilizes revenue, the stock could re-rate from the current P/B around 0.018x toward a more conventional range for regional banks once profitability returns to a positive trajectory. However, the risks are material: continued losses, data quality concerns, and macro headwinds could delay any meaningful multiple expansion.
Key Investment Factors
Growth Potential
Growth potential depends on cost containment, improved operating efficiency, and a potential rebound in revenue from core banking activities. If SG&A can be disciplined and revenue growth resumes in retail and SME segments, the bank could begin to normalize margins from negative to breakeven and beyond.
Profitability Risk
Key risks include persistent negative earnings, high operating expense base relative to revenue, data quality concerns (missing cost-of-revenue and other line items), macroeconomic headwinds in China, asset quality deterioration, and potential regulatory shifts affecting regional banks. The absence of a disclosed loan loss provision or credit metrics adds to execution risk.
Financial Position
Liquidity appears robust on a per-share basis (cash per share of 53.02 CNY) with an extremely low price-to-book. However, the reported negative profitability, questionable data reconciliations (e.g., 100% gross margin with no cost-of-revenue disclosed), and lack of debt data raise questions about the sustainability of the balance sheet and the adequacy of capital for growth and risk absorption.
SWOT Analysis
Strengths
High cash per share (53.02 CNY) indicating liquidity cushion
Historical diversification across banking segments (corporate, retail, financial market) and a broad product suite
Extremely low price-to-book ratio (0.0182x) could imply substantial upside potential if profitability stabilizes
Weaknesses
Material operating losses in Q2 2025 (operating loss of 828.94m CNY)
Negative net income and net margin (-4.92%) highlighting earnings fragility
Missing/disclosed cost-of-revenue data casting doubt on margin integrity
Very low asset turnover (0.00211x) suggesting underutilized assets or scale inefficiencies