China International Capital (3908) Q2 2024 earnings summary

Executive summary

• Total revenue and other income for H1 2024 was RMB14,892.4 million, down 20.0% year-over-year, with profit attributable to shareholders at RMB2,228.1 million, a 37.4% decrease; EPS was RMB0.394, down 41.2%.

• Weighted average return on net assets fell to 2.1% from 3.8% in H1 2023.

• The Board proposed an interim cash dividend of RMB434.45 million (RMB0.90 per 10 shares), subject to shareholder approval.

• The company maintained a strong capital position, with net capital of RMB46,437.2 million as of June 30, 2024, up 5.2% from year-end 2023.

• The company continues to focus on technology, green, inclusive, pension, and digital finance, aiming to strengthen its leadership.

Financial highlights

• Total assets as of June 30, 2024: RMB599,104.4 million, down 4.0% from December 31, 2023; total equity attributable to shareholders rose 1.0% to RMB105,631.5 million.

• Net cash generated from operating activities was RMB10,653.3 million, a significant improvement from net cash used of RMB10,791.4 million in H1 2023.

• Gearing ratio decreased to 79.5% from 80.6% at year-end 2023.

• EBITDA for H1 2024 was RMB8,469.5 million, down 16.4% year-over-year.

• Total expenses decreased 14.0% to RMB12,448.8 million; profit before income tax dropped 40.5% to RMB2,456.7 million.

Outlook and guidance

• The company will focus on supporting technology, green, inclusive, pension, and digital finance in H2 2024.

• Plans to strengthen project pipeline, product portfolio, and risk management, and maintain leadership in REITs and debt financing.

• Will continue to pursue high-quality development, digital transformation, and international expansion.

• Plans include expanding private placement business, developing new financial products, and deepening cross-border capabilities.