Founder Securities (601901) Q3 2024 earnings summary

Executive summary

• Net profit attributable to shareholders for Q3 2024 rose 23.73% year-over-year to RMB 614 million, with a nine-month total of RMB 1.97 billion, up 1.51% year-over-year.

• Operating revenue for Q3 reached RMB 1.71 billion, up 5.97% year-over-year, but nine-month revenue declined 4.15% to RMB 5.43 billion.

• Basic EPS for Q3 was RMB 0.08, up 14.29% year-over-year; nine-month EPS remained at RMB 0.24.

Financial highlights

• Total assets at Q3-end were RMB 237.39 billion, up 6.72% from year-end 2023.

• Shareholders' equity attributable to listed company shareholders reached RMB 47.02 billion, up 3.93% from year-end.

• Net cash flow from operating activities for the nine months was RMB 5.71 billion.

• Investment income for the nine months surged 113.3% year-over-year, while fair value gains dropped 197.2%.

• Non-recurring gains for the nine months totaled RMB 37.09 million, mainly from asset disposals and government subsidies.

Outlook and guidance

• Management highlighted significant volatility in derivative financial assets and liabilities due to market fluctuations.

• Increased scale in financial product investments and proprietary bond lending business noted.