Guolian Minsheng Securities (1456) Q2 2024 earnings summary

Executive summary

• Total revenue, net investment gains, and other income for H1 2024 were RMB1.84 billion, down 27.01% year-over-year; net profit attributable to shareholders was RMB88 million, down 85.39% year-over-year.

• Total assets increased 7.12% to RMB93.33 billion as of June 30, 2024; equity attributable to shareholders rose 2.79% to RMB18.26 billion.

• The company continued to expand its customer base, adding 119,400 new customers, and advanced its digital and wealth management transformation initiatives.

• The company maintained strong liquidity and stable asset quality despite intensified market volatility and declining activity.

Financial highlights

• Basic and diluted EPS for H1 2024 were RMB0.03, down 85.71% year-over-year.

• Net cash inflow from operating activities was RMB5.40 billion, up 83.32% year-over-year.

• Weighted average return on net assets was 0.48%, down 3.00 percentage points year-over-year.

• Gearing ratio increased to 77.86% from 76.79% at end-2023.

• No interim dividend will be distributed for H1 2024.

Outlook and guidance

• Plans to continue promoting asset deployment-focused business models, deepen digital transformation, and integrate online/offline services in H2 2024.

• Investment banking will focus on expanding IPO and refinancing portfolios, especially on the Science and Technology Innovation Board and ChiNext.

• Asset management aims to enhance product and service systems, risk control, and digitalization.