Founder Securities (601901) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥3.72 billion, down 8.18% year-over-year; net profit attributable to shareholders was ¥1.35 billion, down 6.15% year-over-year.

• Total assets reached ¥224.93 billion, up 1.12% from year-end 2023; net assets were ¥47.59 billion, up 3.24%.

• The company maintained a strong capital base and risk control, with a risk coverage ratio of 260.21% and a capital leverage ratio of 15.63%.

• Proposed interim cash dividend of ¥0.48 per 10 shares, totaling up to ¥395 million, pending shareholder approval.

Financial highlights

• Operating income: ¥3.72 billion, down 8.18% year-over-year.

• Net profit attributable to shareholders: ¥1.35 billion, down 6.15% year-over-year.

• Basic and diluted EPS: ¥0.16, down 5.88% year-over-year.

• Net cash flow from operating activities: -¥14.01 billion, a significant decrease from ¥5.53 billion in H1 2023.

• Total assets: ¥224.93 billion, up 1.12% from year-end 2023; total liabilities: ¥177.34 billion, up 0.56%.

Outlook and guidance

• Will continue to focus on profit growth and value enhancement, emphasizing high-quality development and operational efficiency.

• Plans to strengthen core wealth management, enhance product sales, and upgrade advisory systems to increase market share.

• Investment and trading will leverage fixed income strengths, enhance research, and control risks.

• Asset management aims for rapid growth in public funds and robust private equity management.