Executive Summary
- ZhongAn Online P&C Insurance delivered a robust top-line in Q2 2025, with revenue of 15.77 billion CNY, up 77.1% year over year, reflecting strong growth in its online insurance platform and scale advantages.
- Core operating profitability remained solid, as indicated by operating income of 13.47 billion CNY and an operating margin of 0.854. Net income stood at 0.668 billion CNY with a net margin of 0.0423, underscoring a substantial contribution from non-operating items to the reported pre-tax result.
- A material non-operating item, net total other income/expenses of -12.73 billion CNY, dominated pre-tax earnings, highlighting the sensitivity of reported results to non-core items and investment-related effects. Excluding or normalizing this item would materially alter the pre-tax and net outcomes.
- The balance sheet remains conservatively leveraged with a debt ratio of 6.37% and a debt/equity ratio of 0.128, complemented by substantial liquidity indicators (cash per share ~7.34 CNY; operating cash flow per share ~0.722 CNY; free cash flow per share ~0.405 CNY). The company exhibits strong cash generation relative to equity, supporting potential capital deployment.
- Relative to peers in the dataset, ZhongAn shows competitive operating margins and solid revenue growth, but investors should monitor the sustainability of non-operating income and regulatory/regulatory-compliance headwinds in China’s insurtech landscape.
Key Performance Indicators
Key Insights
Revenue (Q2 2025): 15,772,983,000 CNY; Gross Profit: 15,772,983,000 CNY; Operating Income: 13,467,545,000 CNY; Net Income: 667,568,000 CNY; EPS: 0.46 CNY; Weighted Avg Shares: 1,483,484,444; Net Margin: 4.23%; Operating Margin: 85.38%; Pretax Margin: 4.69%; Effective Tax Rate: 9.82%; ROA: 1.54%; ROE: 3.10%; ROCE: 31.0%; Debt Ratio: 6.37%; Debt/Equity: 0.128; Cash per Share: 7.34 CNY; Operating Cash Flow per Share: 0.722 CNY; Free Cash Flow per Share: 0.405 CNY; Capex Coverage: 2.28x; Price/Earni...
Financial Highlights
Revenue (Q2 2025): 15,772,983,000 CNY; Gross Profit: 15,772,983,000 CNY; Operating Income: 13,467,545,000 CNY; Net Income: 667,568,000 CNY; EPS: 0.46 CNY; Weighted Avg Shares: 1,483,484,444; Net Margin: 4.23%; Operating Margin: 85.38%; Pretax Margin: 4.69%; Effective Tax Rate: 9.82%; ROA: 1.54%; ROE: 3.10%; ROCE: 31.0%; Debt Ratio: 6.37%; Debt/Equity: 0.128; Cash per Share: 7.34 CNY; Operating Cash Flow per Share: 0.722 CNY; Free Cash Flow per Share: 0.405 CNY; Capex Coverage: 2.28x; Price/Earnings: 9.25x; Price/Book: 1.146x; Price/Sales: 1.567x; Gross Margin: 100.0%; Operating Margin: 85.38%; Net Income Margin: 4.23%; QoQ changes: Revenue QoQ 0.00%; Net Income QoQ 0.00%; YoY changes: Revenue +77.07%; Gross Profit +77.07%; Operating Income +73.14%; Net Income +143.64%; EPS +142.11%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
15.77B |
77.07% |
0.00% |
| Gross Profit |
15.77B |
77.07% |
0.00% |
| Operating Income |
13.47B |
73.14% |
0.00% |
| Net Income |
667.57M |
143.64% |
0.00% |
| EPS |
0.46 |
142.11% |
0.00% |
Key Financial Ratios
operatingProfitMargin
85.4%
operatingCashFlowPerShare
$0.72
freeCashFlowPerShare
$0.41
Management Commentary
- Management commentary not publicly available in the provided data; no earnings-call transcript was supplied for QQ2 2025. As a result, quantitative synthesis relies on the disclosed financials and peer context rather than verbatim management quotes.
Forward Guidance
- No explicit forward guidance was disclosed in the provided data for QQ2 2025. Given the current disclosure, investors should focus on the trajectory of core insurance operations, sustainable growth in online distribution, and the stabilization of non-operating items affecting pre-tax income.
- Potential drivers include continued scale of the online insurance platform, cross-selling across product lines, and cost discipline in technology-enabled underwriting and claims processing. Key factors to monitor: evolution of the non-operating income/expense line (investment gains/losses, impairment charges), regulatory developments affecting insurtech models, competitive dynamics in China’s P&C space, and the pace of new product launches and partnerships.
- Long-horizon resistance to macro headwinds and capital allocation efficiency will influence the durability of margins and cash generation. Management focus on maintaining low leverage and healthy liquidity will be important for funding potential strategic initiatives without material funding risk.