Shenwan Hongyuan Group Co (000166) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 10.88 billion, down 11.14% year-over-year; net profit attributable to shareholders was RMB 2.13 billion, down 43.22%.

• Basic EPS was RMB 0.08, a 46.67% decrease year-over-year; ROE was 2.09%, down 1.76 percentage points.

• The company maintained a leading position in the industry, focusing on core securities business and comprehensive financial services.

Financial highlights

• Operating income: RMB 10.88 billion (–11.14% YoY); net profit: RMB 2.86 billion (–32.96% YoY).

• Net profit attributable to shareholders: RMB 2.13 billion (–43.22% YoY); adjusted net profit (excluding non-recurring items): RMB 2.06 billion (–41.88% YoY).

• Operating cash flow: –RMB 20.26 billion (vs. +RMB 48.24 billion in H1 2023).

• Total assets: RMB 607.39 billion (–4.41% from end-2023); net assets attributable to shareholders: RMB 101.85 billion (+1.70%).

• Non-recurring gains: RMB 63.54 million, mainly from government subsidies.

Outlook and guidance

• The company expects continued pressure on investment banking due to tightened IPO and refinancing, but sees long-term opportunities from economic recovery and capital market reforms.

• Plans to accelerate transformation to a client-centered model, enhance internationalization, and strengthen risk management.