Executive Summary
Weihai Bank’s QQ2 2025 quarter demonstrates a robust operating earnings profile, with revenue and operating income both amounting to 2.5318 billion CNY. The notable caveat is a substantial negative other income/expenses line (-1.0871 billion CNY), which drives a pre-tax profit of 1.4447 billion CNY and a net income of 1.1276 billion CNY, translating to a net margin of 44.54%. Year-over-year metrics show notable improvements: revenue +114.8%, operating income +337.7%, net income +145.9%, and EPS +223.7%. On the balance sheet and liquidity side, the bank exhibits marked funding stress with liquidity ratios reported at 0.147x (current and quick) and a cash ratio of 0.086x, signaling funding and concentration risks despite the strong quarterly earnings print. Valuation remains attractive on conventional multiples (P/E ~3.55x, P/B ~0.525x), yet the market appears to price in liquidity and earnings durability risk. Absent a material improvement in non-operating income stability and balance sheet liquidity, the sustainability of the earnings stream and the earnings multiple remain a key area of focus for investors.
Key Performance Indicators
Key Insights
Revenue: 2,531,816,000 CNY; Gross Profit: 2,531,816,000 CNY; Operating Income: 2,531,816,000 CNY; Income Before Tax: 1,444,735,000 CNY; Net Income: 1,127,572,000 CNY; EPS: 0.19 CNY. YoY: Revenue +114.78%; Operating Income +337.66%; Net Income +145.86%; EPS +223.68%. QoQ: Revenue growth 0.00%; Net income growth 0.00% (quarterly data limited to a single QQ2 print). Valuation: P/E 3.55x; P/B 0.525x; P/S 6.33x; Dividend Payout 3.77%; Dividend Yield 0.27%. Profitability: Net Margin 44.54%; Pretax Mar...
Financial Highlights
Revenue: 2,531,816,000 CNY; Gross Profit: 2,531,816,000 CNY; Operating Income: 2,531,816,000 CNY; Income Before Tax: 1,444,735,000 CNY; Net Income: 1,127,572,000 CNY; EPS: 0.19 CNY. YoY: Revenue +114.78%; Operating Income +337.66%; Net Income +145.86%; EPS +223.68%. QoQ: Revenue growth 0.00%; Net income growth 0.00% (quarterly data limited to a single QQ2 print). Valuation: P/E 3.55x; P/B 0.525x; P/S 6.33x; Dividend Payout 3.77%; Dividend Yield 0.27%. Profitability: Net Margin 44.54%; Pretax Margin 57.06%. Liquidity: Current Ratio 0.147x; Quick Ratio 0.147x; Cash Ratio 0.086x. Leverage and efficiency: Debt/Equity 1.658x; Asset Turnover 0.0052; Equity Multiplier 15.84x. Cash Flow: Operating Cash Flow per Share -2.04; Free Cash Flow per Share -2.15; Cash per Share 5.40.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.53B |
114.78% |
0.00% |
| Gross Profit |
2.53B |
114.78% |
0.00% |
| Operating Income |
2.53B |
337.66% |
0.00% |
| Net Income |
1.13B |
145.86% |
0.00% |
| EPS |
0.19 |
223.68% |
0.00% |
Key Financial Ratios
operatingProfitMargin
100%
operatingCashFlowPerShare
$-2.04
freeCashFlowPerShare
$-2.15
dividendPayoutRatio
3.77%
Management Commentary
No earnings call transcript was provided for QQ2 2025 in the supplied data. Management commentary and quotes could not be incorporated. Once transcript data is available, key themes should be grouped by strategy, operations, and market conditions with contextual quotes.
Forward Guidance
No formal forward guidance was disclosed in the QQ2 2025 materials. Given the results, investors should monitor: (1) stabilization of the non-operating income line to assess sustainability of post-tax earnings, (2) liquidity management and deposit funding to address the very low liquidity ratios, (3) asset quality indicators and provisioning trends in a regional banking environment, and (4) net interest income sensitivity to policy rates and balance sheet mix. In the absence of explicit targets, the plausibility of achieving any near-term growth or margin targets depends on improving core deposit funding, stabilizing non-interest income, and maintaining prudent credit risk controls.