Southwest Securities (600369) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥1.19 billion, down 19.09% year-over-year; net profit attributable to shareholders was ¥340 million, down 26.33% year-over-year.

• Total assets at June 30, 2024 were ¥79.59 billion, down 6.00% from year-end 2023; net assets were ¥25.53 billion.

• Basic EPS was ¥0.05, down 28.57% year-over-year; weighted average ROE was 1.33%.

• The board proposes an interim cash dividend of ¥0.1 per 10 shares, totaling ¥66.45 million, pending shareholder approval.

• The company maintained a strong liquidity position and met all regulatory capital requirements.

Financial highlights

• Operating income: ¥1.19 billion, down 19.09% year-over-year.

• Net profit attributable to shareholders: ¥340 million, down 26.33% year-over-year.

• Net cash flow from operating activities: ¥3.05 billion, up 803.02% year-over-year.

• Total assets: ¥79.59 billion, down 6.00% from year-end 2023.

• Total liabilities: ¥54.06 billion, down 8.79% from year-end 2023.

Outlook and guidance

• Brokerage business will focus on expanding client base and digital transformation, aiming to grow AUM and improve customer experience.

• Investment banking will target high-quality projects in equity, M&A, and bond financing, with a focus on regional economic development.

• Asset management will continue to develop customized products and digital risk controls, leveraging regional advantages.

• Proprietary trading will maintain a prudent approach, diversifying across asset classes and strategies.