Shandong International Trust Co., Ltd. Issues Significant Profit Warning for FY2025

Key Highlights

• Profit Warning Issued: Shandong International Trust Co., Ltd. (Stock Code: 1697) has issued a profit warning for the financial year ended 31 December 2025.
• Sharp Decline in Net Profit: The Group expects to record a net profit of approximately RMB55 million for FY2025, representing a significant decrease of about 61% compared with the corresponding period in 2024.
• Main Cause: The substantial decrease in profit is mainly attributed to a year-on-year reduction in revenue from certain securities investments, impacted by fluctuations in the capital markets, which led to a notable decline in the Company’s proprietary business income.
• Trust Business Remains Stable: Despite the challenging market environment, revenue generated from the Company’s core trust business remained stable during the period, as the Company continued to pursue the transformation of its trust operations.
• Preliminary and Unaudited Figures: The profit warning is based on a preliminary assessment of unaudited management accounts and the information available as of now. The figures have not yet been confirmed, reviewed, or audited by the Company’s auditors nor reviewed by the audit committee.
• Official Financial Results Pending: The Company will publish its official annual results for FY2025 by the end of March 2026.
• Board Composition: The Board includes Mr. Yue Zengguang (Chairperson and Executive Director), Mr. Chen Liuyi and Mr. Chen Xuebin (Non-executive Directors), and Mr. Zheng Wei, Ms. Zhang Haiyan, and Ms. Liu Wanwen (Independent Non-executive Directors).

Investor Impact & Price Sensitive Information

• Substantial Earnings Drop: A 61% decline in net profit is substantial and indicates considerable pressure on the Company’s earnings, primarily due to volatile capital markets affecting proprietary investment returns. This could negatively impact investor sentiment and share price in the short term.
• Stability in Trust Business: The trust business, which is at the core of the Company’s operations, has maintained stability. This may offer some reassurance to long-term investors concerned about business fundamentals.
• Risk of Further Adjustments: As the results are based on unaudited management accounts and may be subject to adjustments, there is potential for further revisions when the audited results are published, adding a layer of uncertainty.
• Upcoming Disclosure: Shareholders and potential investors are urged to carefully review the annual results announcement for FY2025, which will be released by the end of March 2026. Any further negative adjustments could have additional impact on the share price.

Detailed Analysis

Shandong International Trust Co., Ltd. has formally notified the market of an expected sharp decline in its annual earnings for the year ending 31 December 2025. According to the Company’s preliminary unaudited management accounts, net profit is anticipated to be approximately RMB55 million, down by about 61% from the previous year.

The primary driver behind this substantial drop is a reduction in revenue from certain securities investments, a result of ongoing fluctuations and instability in the capital markets. These market conditions have significantly affected the Company’s proprietary business income stream, which historically has been an important contributor to overall profitability.

Despite these challenges, the Company has continued to push forward with its strategic transformation of the trust business. The management reports that revenues from trust activities have remained stable, which may indicate that the Company’s core business is relatively resilient even amidst broader market volatility.

It is critical for investors to note that the figures provided are preliminary and unaudited. The actual results may differ after the completion of the audit process and review by the audit committee. Shareholders are advised to monitor upcoming disclosures closely, as any negative revisions could further affect the Company’s share price.

The Board of Directors, led by Chairperson Mr. Yue Zengguang, reiterates the importance of reviewing the official annual results, which are expected to be published by the end of March 2026. Investors should be prepared for potential volatility in the stock price until the final audited numbers are made available.

Conclusion

The announcement of a significant profit decline is a material event for Shandong International Trust Co., Ltd. and is likely to be closely watched by market participants. Investors are encouraged to stay informed and exercise caution pending the release of the audited financial statements.

Disclaimer: This article is based on a company announcement and publicly available information. It is not investment advice. Investors should conduct their own due diligence or consult with a financial advisor before making any investment decisions. The information herein may be subject to change after the release of the audited financial results.

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