Key Takeaways
- Shunhao Shares recorded 2025 revenue of RMB 1.188 billion, down 21.78% year on year, and attributable net profit of RMB 58.94 million, up 30.00%.
- In 2025, adjusted attributable net profit fell 90.53% to RMB 4.14 million, and fourth-quarter attributable net profit turned negative at RMB -8.38 million.
- In Q1 2026, revenue was RMB 291.51 million, down 10.34%, while attributable net profit rose 49.94% to RMB 19.98 million.
- Net cash flow from operating activities in Q1 2026 was RMB 59.41 million, up 288.07% year on year.
- As of the end of 2025, the company’s new tobacco-related entities continued to hold licenses covering e-cigarette contract manufacturing, heated tobacco devices, e-cigarette product manufacturing, and domestic sales by an e-cigarette brand-holding enterprise.
2Firsts, April 29, 2026
According to Shunhao Shares’ 2025 annual report summary, the company recorded 2025 operating revenue of RMB 1.188 billion, down 21.78% year on year. Net profit attributable to shareholders was RMB 58.94 million, up 30.00%, while non-recurring adjusted attributable net profit was RMB 4.14 million, down 90.53%.
2025 revenue fell, while attributable net profit increased
The annual report summary shows that Shunhao Shares had total assets of RMB 2.609 billion at the end of 2025, down 6.67% from the end of 2024. Net assets attributable to shareholders were RMB 1.810 billion, down 4.33%. Net cash flow from operating activities was RMB 135.03 million, down 54.08% year on year.
Basic and diluted earnings per share were both RMB 0.06, versus RMB 0.04 a year earlier, while weighted average return on net assets was 3.20%, up 0.82 percentage points. The company said it does not plan to distribute a cash dividend, bonus shares or capitalization from reserves for 2025.
Fourth-quarter attributable net profit turned negative in 2025
Quarterly figures show that attributable net profit was RMB 13.33 million in the first quarter, RMB 19.98 million in the second quarter, and RMB 34.02 million in the third quarter, but turned negative at RMB -8.38 million in the fourth quarter.
Adjusted attributable net profit was RMB 16.72 million in the first quarter, RMB 12.77 million in the second quarter, RMB -7.35 million in the third quarter, and RMB -17.99 million in the fourth quarter.
Q1 2026 revenue fell 10.34%, while attributable net profit rose 49.94%
The first-quarter 2026 report shows that the company recorded revenue of RMB 291.51 million, compared with RMB 325.13 million a year earlier, down 10.34%. Net profit attributable to shareholders was RMB 19.98 million, compared with RMB 13.33 million in the same period last year, up 49.94%.
Adjusted attributable net profit was RMB 12.85 million, compared with RMB 16.72 million a year earlier, down 23.10%. Net cash flow from operating activities was RMB 59.41 million, compared with RMB 15.31 million a year earlier, up 288.07%.
Basic and diluted earnings per share were both RMB 0.0189, compared with RMB 0.0126 in the prior-year period, while weighted average return on net assets was 1.10%, up 0.40 percentage points.
Non-recurring gains supported first-quarter profit
In the first quarter of 2026, non-recurring profit and loss totaled RMB 7.13 million, mainly including RMB 1.64 million in government subsidies and RMB 5.53 million in fair-value and disposal gains from trading financial assets.
Investment income and fair-value gains increased year on year in Q1
The company disclosed that first-quarter 2026 investment income was RMB 9.31 million, compared with RMB -4.59 million a year earlier, up 302.88%. Fair-value gains were RMB 3.59 million, compared with RMB -2.72 million in the same period last year, up 231.67%.
Financial expenses rose 241.35%, which the company said was mainly due to increased foreign-exchange losses caused by exchange-rate changes.
Operating cash flow growth was mainly linked to recovered deposits and rental income
Shunhao Shares said net cash flow from operating activities rose 288.07% in the first quarter of 2026, mainly because of increased recovered deposits and rental income. Net cash flow from financing activities rose 100.29%, mainly because of increased cash received from borrowings.
The company continued to advance new tobacco operations through subsidiaries and investees
According to the 2025 annual report summary, in the field of new tobacco products, the company continued to conduct relevant business through its own investments and holding subsidiaries, forming a coordinated and standardized industrial system.
Luxinfeng maintained dual licenses for e-cigarette contract manufacturing and heated tobacco devices
As of the end of 2025, the company’s grandchild company Luxinfeng had obtained a tobacco monopoly production enterprise license for e-cigarette contract manufacturing and another tobacco monopoly production enterprise license for heated tobacco device manufacturing, giving it a dual-license structure. The company’s investee Meizhonglian had obtained a tobacco monopoly production enterprise license for e-cigarette product manufacturing, while subsidiary Shunhao Yilong had obtained a tobacco monopoly production enterprise license for domestic sales by an e-cigarette brand-holding enterprise. The company said it actively carried out renewal and replacement applications for e-cigarette licenses during the reporting period.
The first-quarter report also disclosed share repurchase and Guidao Chenguang investment updates
The first-quarter 2026 report said that as of March 31, 2026, the company had repurchased 13.4464 million shares through centralized bidding, representing 1.2685% of total share capital, with total payments of RMB 99.99 million. The report also said the company approved a capital increase of RMB 74.98 million in Beijing Guidao Chenguang Technology in January 2026, raising its stake to 27.8174%, and later, after waiving pre-emptive subscription rights, its stake changed to 23.7756%.
Image source: Shunho
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