Haitong Securities (600837) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was RMB 12.90 billion, down 42.86% year-over-year due to declines in other business income, net fee and commission income, and investment returns.

• Net loss attributable to shareholders for Q3 2024 was RMB 1.61 billion, a 403.05% decrease compared to the same quarter last year; net loss for the nine-month period was RMB 659 million.

• The company is in the process of a proposed merger, with Guotai Junan Securities planning to absorb Haitong Securities via share swap, pending regulatory approval.

Financial highlights

• Q3 2024 revenue was RMB 4.03 billion, down 28.03% year-over-year.

• Net profit attributable to shareholders for the first nine months was a loss of RMB 659 million, down 115.12% year-over-year.

• Basic and diluted EPS for Q3 were both -0.12 RMB, and -0.05 RMB for the nine-month period.

• Total assets at Q3-end were RMB 693.24 billion, down 8.13% from year-end 2023.

• Net cash flow from operating activities for the nine months was RMB 46.69 billion, a significant improvement from a negative RMB 21.56 billion in the prior year.

Outlook and guidance

• The merger with Guotai Junan Securities is expected to reshape the company's future, subject to internal and regulatory approvals.