Yuexiu Capital forecasts significant profit jump despite impairment provisions

Guangzhou Yuexiu Financial Holdings Group (Yuexiu Capital) forecasts a 70-80% increase in net profit attributable to shareholders for the first three quarters of 2025, reaching between CNY 2,922.10 million and CNY 3,093.98 million. This growth is attributed to improved investment returns and increased power generation from new energy businesses. The company also projects a 94-118% rise in net profit attributable to shareholders for Q3 2025, ranging from CNY 1,363.65 million to CNY 1,535.54 million.

A significant factor is the reclassification of its holdings in Beijing Holdings Company and New Sky Green Energy Company from transactional financial assets to long-term equity investments, following the appointment of its executives to their respective boards. This change is expected to generate one-time gains of approximately CNY 2,022 million and CNY 298 million, increasing Q3 2025 net profit by CNY 1,047 million and CNY 134 million, respectively. However, Yuexiu Capital also anticipates a provision for asset impairment and credit impairment losses of CNY 1,400 million to CNY 1,600 million for the first three quarters, reducing net profit by approximately CNY 720 million to CNY 820 million.