Fortune Trend(SH:688318) Hua Xia Shi Bao·2025-12-18 00:18Core Viewpoint - Wealth Trend (688318.SH) plans to use idle self-owned funds not exceeding RMB 1.7 billion for external investments, raising market concerns about cash flow and compliance with regulations [1][4]. Investment Authorization - The board approved an investment authorization for the general manager to use up to RMB 1.7 billion for external investments within 12 months, ensuring fund safety and compliance [2][4]. Compliance and Fund Composition - The investment authorization complies with relevant regulations and does not require shareholder approval, as it involves self-owned funds, not raised funds [4][3]. The total assets exceed RMB 3.8 billion, and the investment does not exceed 50% of total assets or market value [4]. Investment Strategy - The investment will focus on fixed income products, non-fixed income products, and equity assets, with strict risk control measures in place [4][5]. A funds management committee oversees the investment process to ensure safety and compliance [5]. Financial Performance - For Q3 2025, the company reported total revenue of RMB 198 million, a year-on-year decline of 5.71%, while net profit increased by 27.91% to RMB 184 million [6][7]. The revenue drop is attributed to reduced demand from financial institutions, while net profit growth is due to increased cash management income and cost control [7]. Cash Flow Concerns - Operating cash flow decreased by 40.75% year-on-year, raising concerns about potential cash flow crises due to ongoing large-scale investments [8]. The decline is linked to lower bank deposit income and increased upfront cash expenditures for business growth [8]. Market Reaction - The company's stock price fell over 27% from its peak of RMB 180.86 in late August to RMB 131.92 by mid-December, influenced by broader market trends in the fintech sector [10][11]. Future Development Strategy - In 2026, the company aims to expand its B-end business, enhance product development in bonds, and strengthen its securities information service, with a focus on AI as a strategic direction [12]. The company plans to leverage its advantages to enhance user engagement and competitive strength [12].