Executive Summary
ZhongAn Online P&C Insurance posted QQ1 2025 revenue of 7.887 billion CNY, with gross profitability essentially matching revenue (gross margin reported at 100%). Core operating profitability remained strong, as operating income reached 6.733 billion CNY and the operating income margin stood at approximately 85.38% of revenue. However, a substantial negative contribution from total other income and expenses net (-6.364 billion CNY) materially dampened pretax earnings, producing a pretax income of 370.1 million CNY and a net income of 333.8 million CNY for the quarter. The result is a striking example of earnings volatility driven by non-operating items rather than core underwriting performance.
Key Performance Indicators
QoQ: -11.46% | YoY:-0.87%
QoQ: -11.46% | YoY:-0.87%
QoQ: -13.43% | YoY:-4.02%
QoQ: 21.82% | YoY:1 103.54%
QoQ: 21.05% | YoY:1 116.93%
Key Insights
Revenue: 7,886,491,500 CNY; YoY change: -0.87%; QoQ change: -11.46%. Gross Profit: 7,886,491,500 CNY; YoY: -0.87%; QoQ: -11.46%; Gross Margin: 100.0% (grossProfit/Revenue).
Operating Income: 6,733,772,500 CNY; YoY: -4.02%; QoQ: -13.43%; Operating Margin: 85.38% (OperatingIncome/Revenue).
Total Other Income/Expenses Net: -6,363,650,500 CNY; Pretax Income: 370,122,000 CNY; Pretax Margin: 4.69%.
Income Tax Expense: 36,338,000 CNY; Net Income: 333,784,000 CNY; Net Margin: 4.23%.
EPS: 0.23 CNY; Weigh...
Financial Highlights
Revenue: 7,886,491,500 CNY; YoY change: -0.87%; QoQ change: -11.46%. Gross Profit: 7,886,491,500 CNY; YoY: -0.87%; QoQ: -11.46%; Gross Margin: 100.0% (grossProfit/Revenue).
Operating Income: 6,733,772,500 CNY; YoY: -4.02%; QoQ: -13.43%; Operating Margin: 85.38% (OperatingIncome/Revenue).
Total Other Income/Expenses Net: -6,363,650,500 CNY; Pretax Income: 370,122,000 CNY; Pretax Margin: 4.69%.
Income Tax Expense: 36,338,000 CNY; Net Income: 333,784,000 CNY; Net Margin: 4.23%.
EPS: 0.23 CNY; Weighted Average Shares Outstanding: 1,483,484,444; Diluted: 1,469,813,000.
Income Before Tax Margin: 4.69%; Net Income Margin: 4.23%; Earnings per Share (diluted): 0.23 CNY.
YoY EPS growth: ~1,116.93%; QoQ EPS growth: ~21.05%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.89B |
-0.87% |
-11.46% |
| Gross Profit |
7.89B |
-0.87% |
-11.46% |
| Operating Income |
6.73B |
-4.02% |
-13.43% |
| Net Income |
333.78M |
1 103.54% |
21.82% |
| EPS |
0.23 |
1 116.93% |
21.05% |
Management Commentary
No transcript data provided in the accompanying materials. As a result, management commentary and verbatim quotes from the QQ1 2025 earnings call could not be incorporated into the highlights. Investors should seek the official earnings call transcript or investor presentation for granular management tone, strategic emphasis, and forward-looking guidance.
Forward Guidance
No formal forward guidance was disclosed in the QQ1 2025 release. Given the material influence of Total Other Income/Expenses Net on quarterly results, investors should watch for any normalization or recurring patterns in non-operating items to gauge true earnings power. Potential catalysts for improvement include: (1) stabilization or recovery of investment/other income items, (2) continued expansion of digital distribution channels and higher underwriting efficiency via insurtech capabilities, (3) product mix shifts toward higher-margin lines or more profitable segments, and (4) cost discipline sustaining a solid operating margin even as scale grows. Key monitoring points: core underwriting profitability (underwriting margin, claims ratio), quarterly trend in other income/expenses, policy growth from online channels, and any disclosed buyback or capital deployment plans.