Zheng Quan Shi Bao·2025-10-30 20:13Core Viewpoint - The merger between Xiangcai Co. and Dazhihui is progressing, with both companies reporting significant financial improvements in their Q3 2025 results, indicating a potential rise in their market position among internet brokerages [2][5]. Financial Performance - Xiangcai Co. reported a total revenue of 6.55 billion yuan in Q3 2025, a year-on-year increase of 43.77%, and a net profit of 3 billion yuan, reflecting a 315.25% growth [3]. - For the first three quarters, Xiangcai Co. achieved a cumulative revenue of 17.99 billion yuan, up 16.15%, and a net profit of 4.42 billion yuan, which is a 203.39% increase compared to the previous year [3]. - Dazhihui, while still in a loss position, showed signs of improvement with a revenue of 5.64 billion yuan in the first three quarters, an 8.78% increase, and a reduced net loss of 29.56 million yuan, narrowing the loss by over 80% compared to the previous year [4]. Merger Progress - The merger plan, announced on March 29, 2025, is moving forward, with key milestones achieved, including the approval of the merger draft by Xiangcai Co.'s temporary shareholders' meeting in October 2025 [5][8]. - The merger will involve a stock swap, where Xiangcai Co. will issue A-shares to acquire all shares of Dazhihui, leading to Dazhihui's delisting and Xiangcai Co. assuming all of its assets and liabilities [5][6]. - A financing plan of up to 8 billion yuan is being prepared to support the merged entity's business integration and development, focusing on financial technology and digitalization projects [6]. Market Position and Industry Context - The merger is expected to elevate the combined entity's revenue and net profit above that of Zhinancai, positioning it as the second-largest internet brokerage in China [2][7]. - The trend of mergers in the industry, such as Zhinancai's acquisition of Maigao Securities and Dongfang Caifu's acquisition of Tongxin Securities, highlights the potential of the "financial technology platform + brokerage license" model [7]. - Xiangcai Co. emphasizes the importance of balancing specialization, technological advancement, and capitalization for survival amid increasing competition from leading brokerages and emerging internet platforms [7].