After the suspension of review, the performance fundamentals of Xiangcai Securities and Great Wisdom were disclosed simultaneously.

(Source: Caixin)

          Xiangcai Securities' net profit attributable to the parent company has surged, while DaZhihui continues to incur losses. Earlier, the merger process between the two parties was put on hold.            

As the A-share earnings season is in full swing, on March 20, Xiangcai Co., Ltd. (600095.SH) and DaZhihui (601519.SH), two closely related listed companies, disclosed their annual reports for 2025 on the same day.

However, just before the earnings report was released on March 14, the much-anticipated capital operation between the two parties faced setbacks. The stock-swap merger of DaZhihui by Xiangcai Co. Ltd.'s subsidiary, Xiangcai Securities Co., Ltd. (hereinafter referred to as “Xiangcai Securities”), was suspended by the Shanghai Stock Exchange due to issues regarding the validity period of the data.

With the annual reports released, the performance backdrop of both companies has become clear. According to financial industry reporting standards, Xiangcai Securities achieved total operating revenue of 2.012 billion yuan for 2025, an increase of 21.94% year-on-year; the net profit attributable to the parent company reached 530 million yuan, up 118.08% year-on-year. DaZhihui reported operating revenue of 827 million yuan, a year-on-year increase of 7.23%, with a net loss attributable to the parent company of 44.0257 million yuan, which is a significant reduction in loss compared to the 2024 loss of 201 million yuan.

Performance backdrop unveiled

On March 20, DaZhihui was the first to disclose its annual report. According to the company’s previous earnings forecast, it expected a net loss attributable to the parent company in 2025 to be between -34 million and -50 million yuan, and a net loss after deducting non-recurring gains and losses to be between -69 million and -85 million yuan. In the annual report, these two figures were finalized at -44.0257 million yuan and -77.7965 million yuan, respectively.

DaZhihui stated in its annual report: “This period saw some business revenue growth compared to the same period last year. The company continues to promote cost reduction and efficiency improvement, leading to a significant decrease in costs and expenses; however, the revenue growth is still insufficient to cover costs.”

From the perspective of industry segments, its financial information service sector generated operating revenue of 821 million yuan, a year-on-year increase of 7.71%, while operating costs decreased by 3.55% year-on-year; its live streaming platform business generated operating revenue of 3.1086 million yuan, a year-on-year decrease of 29.49%.

By product, the financial information and data mobile terminal service system is the fastest-growing product in terms of performance, with operating revenue increasing by 38.57% year-on-year. In contrast, the insurance brokerage business saw a year-on-year decline in operating revenue of 35.05%.

Additionally, DaZhihui stated: “During the reporting period, the company continued to increase investment in cutting-edge areas such as artificial intelligence, distributed computing, and large models.” However, according to the company’s R&D expenses, its R&D expenses for 2025 amounted to 185 million yuan, a year-on-year decrease of 16.26%.

From the annual report of Xiangcai Co., Ltd., in 2025, in addition to the growth in both revenue and net profit, by the end of 2025, its total assets reached 40.37 billion yuan, an increase of 15.27% compared to the beginning of the year; net assets attributable to the parent company were 9.702 billion yuan, up 5.86% compared to the beginning of the year; net capital was 8.308 billion yuan, an increase of 8.22% compared to the beginning of the year.

The report noted that in 2025, Xiangcai Securities’ commission income and investment advisory business income both achieved historically good levels.

Merger put on hold

Latest data shows that Xiangcai Co., Ltd. is the second-largest shareholder of DaZhihui. On March 16, 2025, Xiangcai Co., Ltd. and DaZhihui both announced they were planning a major asset restructuring. On September 22 of the same year, Xiangcai Co., Ltd. disclosed that the audit and due diligence for the acquisition of DaZhihui had been completed. However, on March 14, 2026, the transaction was suspended by the Shanghai Stock Exchange.

On March 15, both Xiangcai Co., Ltd. and DaZhihui issued announcements stating that, due to the valuation data in the application documents being expired on that day, and the most recent audited financial statements expiring on March 31, the data update work is currently in preparation, and the Shanghai Stock Exchange has suspended the review of this transaction.

According to previous reports, as early as 2014, DaZhihui had previously planned a restructuring with Xiangcai Securities, which is now under Xiangcai Co., Ltd., but that collaboration failed due to violations of information disclosure regulations and other reasons leading to investigations.

According to the announcement, this transaction still requires approval from the Shanghai Stock Exchange and the consent of the China Securities Regulatory Commission for registration before it can be formally implemented. There is still uncertainty regarding whether it will pass the review, obtain registration, and the timing of final approval and registration.

From the performance perspective, Xiangcai Securities has significantly improved its profitability, while DaZhihui, although still not turning a profit, has greatly narrowed its loss. Whether the two will successfully collaborate remains a focal point of market attention.