Sinolink Securities (600109) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥2.68 billion, down 19.55% year-over-year; net profit attributable to shareholders was ¥454.88 million, down 47.98% year-over-year.

• Decline in performance mainly due to lower income from proprietary investment business.

• Total assets at June 30, 2024, were ¥114.93 billion, down 1.80% from year-end 2023.

• No interim cash dividend; company completed a share buyback and cancellation, using ¥99.99 million, equivalent to 21.98% of H1 net profit.

Financial highlights

• Operating income: ¥2.68 billion, -19.55% year-over-year.

• Net profit attributable to shareholders: ¥454.88 million, -47.98% year-over-year.

• Basic and diluted EPS: ¥0.123, -47.66% year-over-year.

• Net asset value per share: ¥8.73.

• Net cash flow from operating activities: ¥5.38 billion, up 15.44% year-over-year.

Outlook and guidance

• H2 2024 expected to see continued weak recovery in China’s economy; capital markets remain volatile.

• Company will focus on strengthening core businesses, risk management, and digital transformation.

• Emphasis on high-quality development, innovation, and customer-centric strategies.