A certain state-owned enterprise trust issues profit warning: net profit down 61%!

On March 16, Shandong International Trust Co., Ltd. (referred to as “Shandong Guoxin,” stock code: 01697.HK) issued a “Profit Warning”:

It is expected that the Group will achieve a net profit of approximately RMB 55 million for the year ending December 31, 2025, representing a decrease of about 61% compared to the same period in 2024. The Board anticipates that this decline is mainly due to fluctuations in the capital markets, which have led to a decrease in gains from securities investments held by the company. Additionally, the company’s inherent business income has declined year-on-year. In 2025, the company will continue to deepen its transformation of trust business, maintaining stable trust business income.

Looking back at recent performance, Shandong Guoxin’s profitability has been under continuous pressure and gradually declining, with the dual impact of industry transformation and market volatility becoming increasingly evident.

Data shows that in 2021, the company’s net profit remained at a high level of RMB 469 million. In 2022, it sharply fell by 40.3% to RMB 280 million; in 2023, net profit further decreased to RMB 159 million, down 43.2% year-on-year; in 2024, the decline narrowed to 9.98%, with net profit at RMB 143 million. However, the profit forecast for 2025 indicates a significant decline again, reaching the lowest level in nearly five years.

Regarding the reasons for the substantial drop in net profit in 2025, Shandong Guoxin explicitly stated in the announcement that it is mainly affected by fluctuations in the capital markets. The gains from securities investments held by the company have decreased year-on-year, and inherent business income has also declined. As two core business segments of a trust company, the performance of inherent and trust businesses directly determines the company’s overall profitability.

It is noteworthy that despite the overall decline in performance, Shandong Guoxin continues to make efforts in transforming its trust business.

By December 2025, the company launched the first pension consumption prepayment fund trust in Shandong Province, extending the prepayment fund trust model to the elderly care service sector, establishing a dual supervision framework of “trustee + custodian,” effectively preventing fund misappropriation risks, and demonstrating the company’s transformation efforts in serving people’s livelihood.

In addition, the company has made progress in standardized business and family trusts. As of June 2025, the scale of Shandong Guoxin’s family trusts reached RMB 61.927 billion, an increase of 19.3% from the beginning of the year. The transformation results are gradually becoming evident, but in the short term, they have not yet effectively offset the performance pressure caused by the decline in inherent business.

Public information shows that Shandong Guoxin was established in 1987 and listed on the Main Board of the Hong Kong Stock Exchange in 2017. It is an important trust institution in Shandong Province, mainly operating through two major segments: trust business and inherent business. Its operations cover Jinan, Qingdao, Beijing, Shanghai, and other cities, focusing on serving the real economy and people’s livelihood. In recent years, Shandong Guoxin has continuously improved its institutional system, optimized its business structure, and promoted the return of trust business to its core. However, faced with fluctuations in the capital markets and intensified industry competition, the company still faces significant pressure on profitability.

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