Net profit margin 75%! Eastmoney: Exercise restraint, empower retail investors

Source: Market Momentum (Shizhi Fengyun)

A bull market—brokers’ sweet honey.

Author | Guantao

Editor | Xiaobai

What’s considered extremely high-quality performance growth? On the evening of March 19, East Money (300059.SZ) set an example for the entire brokerage sector with a 2025 annual report that can only be described as explosive.

The annual report shows that in 2025, East Money’s total revenue was 16.068 billion yuan, up 38.46% year over year. However, what truly made Fengyun’er amazed was its profitability—although 16 billion yuan in revenue is not comparable to many top-tier brokerages, attributable net profit still reached 12.085 billion yuan, up 25.75% year over year, hitting a record high.

This means that in 2025, East Money’s net profit margin exceeded 75%. This performance also proves the “high gross margin, high profit elasticity” gene of the internet platform, engraved in its bones, and it essentially writes the words “explosive” right on its forehead.

What’s interesting is that, due to the recent continued decline in the stock price, some retail investors left a comment in the stock forum at dawn: “Since the performance is good, don’t let it drop every day. Please give your trusting investors some return.”

It’s already common knowledge that brokerage-sector行情 has been good these two years. So what different information does East Money’s annual report reveal?

The annual report shows that in 2025, East Money’s brokerage business and fund-share transaction volume was 38.46 trillion yuan. The total cumulative trading value of A-shares in 2025 was 420.21 trillion yuan. Based on this, East Money’s share is approximately 9.2%.

Looking at the structure of revenue growth, financial e-commerce services are fund distribution business, and financial data services correspond to the Choice software; they grew 25.18% and 11.99% year over year, respectively, and have not yet outpaced the overall revenue growth rate.

Meanwhile, securities services revenue increased 47.59% year over year. This is mainly what we commonly refer to as brokerage business and margin trading and securities lending. The “Lhasa regiment” camp really lives up to its reputation. Relying on the dual traffic pools of “East Money website + 天天基金 (TianTian Fund),” East Money can be said to have pushed the advantage of retail trading scenarios to a new height.

(2025 annual report)

Securities services business income is accounted for using the net method, and its gross margin is inherently 100%. The fund distribution business’s gross margin is 93.01%. The business attributes themselves form the foundation of East Money’s extremely high net profit.

(2025 annual report)

In addition, the 2.65 billion yuan of investment income also makes a positive contribution to improving the net profit margin. Does that mean East Money is also really great at trading stocks on its own? The answer may disappoint you.

Although at the end of 2025, East Money’s carrying value of single financial assets was as high as 190.505 billion yuan, most of it is made up of debt claims, bank wealth-management products, and funds. Stocks and NEEQ products are only 3.26 billion yuan, accounting for just 3%, which is about 200 million yuan less than at the end of 2024.

(2025 annual report)

Besides trading financial assets, East Money also has debt investments of 803 million yuan, other debt investments of 7.331 billion yuan, and other equity instrument investments of 5.425 billion yuan—but mainly local government bonds, corporate bonds, and government bonds.

That’s really interesting: as the largest retail investor gathering hub in A-shares, East Money provides countless retail investors with rich emotional value and technical tools, and yet it also rakes in 75.21% of net profit with retail investors flocking around it.

However, even though it’s overflowing with cash, it shows extreme restraint when it comes to making money by trading stocks.

Correspondingly, in 2025, East Money’s operating net cash flow was a cumulative net outflow of 10.222 billion yuan. Without saying, it must be lending the money out through margin trading and securities lending to bold investors to get them rich trading.

Disclaimer: This report (article) is based on the listed company’s publicly disclosed information—stemming from the company’s nature as a public company and its statutory duties—such as, but not limited to, interim announcements, periodic reports, and official interactive platforms, as the core basis; Market Momentum aims for the report (article)’s contents and viewpoints to be objective and fair, but does not guarantee their accuracy, completeness, timeliness, etc.; The information or opinions stated in this report (article) do not constitute any investment advice. Market Momentum shall not bear any responsibility for any actions taken based on this report.

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