Orient Securities Company (600958) Q2 2024 earnings summary

Executive summary

• Net profit attributable to shareholders rose 11.05% year-over-year to RMB 2.11 billion for H1 2024, while operating revenue was RMB 8.571 billion, down 1.42% year-over-year.

• Total assets at period-end were RMB 383.69 billion, up 4.21% from year-end 2023, and shareholders’ equity increased 2.11% to RMB 80.411 billion.

• Basic EPS rose 14.29% to RMB 0.24, and weighted average ROE improved to 2.66%.

• Proposed interim dividend of RMB 0.75 per 10 shares, totaling RMB 634.64 million, representing 30.06% of H1 net profit.

• Focused on high-quality, sustainable growth and enhanced core competitiveness.

Financial highlights

• Operating profit increased 9.92% year-over-year to RMB 21.50 billion.

• Total profit reached RMB 22.71 billion, up 5.78% year-over-year.

• Net cash flow from operating activities was -RMB 17.29 billion.

• Asset-liability ratio was 70.42%, down 0.62 percentage points from year-end 2023.

• Liquidity coverage ratio (parent) was 192.30%, well above regulatory minimum.

Market and industry conditions

• Shanghai Composite Index declined 0.25% and Shenzhen Component Index fell 7.10% in H1 2024.

• A-share average daily trading volume dropped to RMB 862.74 billion from RMB 942.67 billion year-over-year.

• Public mutual fund scale decreased to RMB 27.6 trillion, while issuance increased 19% year-over-year.

• Domestic capital markets remained volatile; regulatory reforms and new policies emphasized high-quality development.

• Industry-wide decline in brokerage and asset management fees; bond market activity robust.