Nanhua Futures (603093) Q3 2024 earnings summary

Executive summary

• Q3 revenue rose 7.08% YoY to RMB1.824bn, while net income attributable to shareholders declined 1.48% to RMB128.1m.

• 9M revenue fell 7.99% YoY to RMB4.461bn; net income grew 20.07% to RMB358.3m, and adjusted net income rose 22.09% to RMB356.1m.

Financial highlights

• Q3 basic and diluted EPS were RMB0.21, flat YoY; 9M EPS was RMB0.59, up 20.41% YoY.

• 9M operating cash flow was RMB6.763bn, up 162.82% YoY, primarily due to a larger increase in customer equity balances than in the prior-year period.

• Total assets reached RMB45.640bn at Sept. 30, up 25.64% from year-end 2023; parent-attributable equity rose 7.19% to RMB3.969bn.

Key financial ratios and metrics

• Weighted average ROE was 3.18% for Q3, down 0.45 percentage points YoY; 9M ROE was 9.33%, up 0.77 percentage points.

• Parent-company net capital was RMB1.462bn versus RMB1.518bn at year-end; net capital/risk capital reserves ratio was 185% versus 246%.

• Liquidity assets/current liabilities ratio was 537% versus 511%; liabilities/net assets ratio remained 28%.

• Settlement reserve balance was RMB830.6m, down from RMB1.170bn at year-end 2023.