Western Securities Co. (002673) investor relations material

Executive summary

• Q3 revenue was ¥1.044bn, down 32.46% YoY; net income attributable to shareholders was ¥132.8m, down 71.04% YoY.

• 9M revenue rose 9.12% to ¥4.730bn, while attributable net income fell 6.07% to ¥1.168bn.

• 9M adjusted net income, excluding non-recurring items, was ¥1.155bn, down 6.07% YoY; Q3 adjusted net income was ¥127.5m, down 71.96%.

Financial highlights

• 9M operating revenue was ¥4.730bn versus ¥4.335bn; operating profit was ¥1.612bn versus ¥1.693bn, and net income was ¥1.210bn versus ¥1.265bn.

• 9M basic and diluted EPS were both ¥0.2617, down 6.07% YoY; Q3 EPS was ¥0.0298, down 70.98%.

• Total assets reached ¥136.172bn at Sept. 30, up 11.93% from year-end; attributable equity was ¥30.735bn, up 1.98%.

• 9M net cash from operating activities was -¥3.957bn versus +¥3.032bn YoY.

Segment performance

• Brokerage net fees rose 45.10% to ¥1.422bn; the increase reflected Guorong Securities consolidation and more active market trading.

• Asset management net fees increased 48.52% to ¥150.8m, mainly due to Guorong Securities consolidation.

• Interest income grew 30.34% to ¥1.026bn, reflecting consolidation and higher margin-financing and securities-lending income.

• Investment banking fees were ¥255.2m versus ¥283.3m in the prior-year period.

• Other business revenue fell 40.67% to ¥435.3m and associated costs fell 40.02% to ¥395.0m, mainly due to lower bulk commodity trading.