ZhongAn Online P C (1ZO.VI) Q4 2024 Earnings Report

ZhongAn Online P&C Insurance Co Ltd reported QQ4 2024 revenue of 8.908 billion CNY, up 16.7% year over year, with operating income of 7.778 billion CNY and an operating margin of approximately 87.3%. The quotient of non-operating items, however, weighed heavily on the net result: total other income and expenses were negative by 7.371 billion CNY, producing a net income of 274 million CNY and a net margin near 3.1% for the quarter. This divergence underscores a significant one-off/non-operating drag that obscured a strong core operating performance. On the balance sheet, ZhongAn maintained a solid asset base and a robust equity position, with total assets of about 45.28 billion CNY and total stockholders’ equity of about 20.93 billion CNY. The company generated positive operating cash flow of 564.3 million CNY and free cash flow of 475.7 million CNY, supported by modest capital expenditures and ongoing investment activity. Leverage remains moderate, with total debt around 7.12 billion CNY and a debt-to-capitalization ratio near 0.254, while cash and short-term investments totaled roughly 13.78 billion CNY combined (cash 1.47 billion and short-term investments 11.32 billion). Looking forward, the near-term earnings trajectory appears sensitive to non-operating items and investment performance rather than revenue growth alone. Management commentary (where available in the transcript data) and industry dynamics suggest a continued emphasis on scale through insurtech-driven distribution, data analytics, and product diversification. Investors should monitor normalization of non-operating items, underwriting profitability trends, and the trajectory of investment returns as key catalysts for a more durable earnings path.