China Galaxy Securities (6881) Q4 2024 earnings summary

Executive summary

• Achieved total revenue, gains, and other income of RMB46.76 billion in 2024, up 3.99% year-over-year; net profit attributable to owners reached RMB10.03 billion, up 27.31% year-over-year.

• Total assets increased 11.20% to RMB737.47 billion; equity attributable to owners rose 7.68% to RMB140.48 billion.

• Maintained a stable industry position, with strong performance in wealth management, investment banking, institutional, international, and investment trading businesses.

• Continued to implement the 2023-2025 strategic plan, focusing on high-quality development, risk management, and digital transformation.

Financial highlights

• Basic earnings per share: RMB0.81 (up 20.9% year-over-year); weighted average return on net assets: 8.30%.

• Gearing ratio decreased to 75.43% from 75.97% in 2023.

• Net cash flow from operating activities improved to RMB-6.47 billion from RMB-30.19 billion in 2023.

• Commission and handling fee income rose 11.38% to RMB8.44 billion; investment gains and losses surged 50.21% to RMB11.50 billion.

• Interest income declined 2.72% to RMB14.06 billion; net interest income fell 7.55% to RMB3.85 billion.

• Operating expenses (excluding commission, interest, and bulk commodity costs) decreased 2.19% to RMB24.95 billion.

Outlook and guidance

• 2025 is the final year of the current strategic plan, with a focus on balanced development, risk control, and digital transformation.

• The company aims to further enhance its position as a leading modern investment bank, leveraging opportunities in wealth management, investment banking, and international business.

• Market share of large state-owned securities companies expected to increase amid industry consolidation.