Everbright Securities Company (601788) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 4.18 billion, down 32.29% year-over-year; net profit attributable to shareholders was RMB 1.39 billion, down 41.87% year-over-year.

• All major business clusters saw revenue declines, with wealth management contributing 48% of total revenue, followed by asset management (12%), institutional clients (13%), investment trading (10%), and corporate finance (11%).

• Performance was impacted by lower equity financing, reduced trading activity, and increased market volatility.

• The company maintained a strong capital position and liquidity, with risk control indicators meeting regulatory requirements.

• Focused on core financial services, supporting new productive forces, and enhancing risk management and product offerings.

Financial highlights

• Operating income: RMB 4.18 billion, down 32.29% year-over-year.

• Net profit attributable to shareholders: RMB 1.39 billion, down 41.87% year-over-year.

• Basic EPS: RMB 0.26, down 45.83% year-over-year.

• Total assets: RMB 237.08 billion, down 8.68% from year-end 2023.

• Net cash flow from operating activities: RMB 14.71 billion, up 1,268% year-over-year.

Outlook and guidance

• The company will focus on customer-centric transformation in wealth management, risk control, and product innovation in H2 2024.

• Corporate finance will emphasize compliance and support for strategic industries, while asset management will prioritize absolute return products and risk management.

• Continued focus on core business and risk management amid challenging market conditions.