Southwest Securities (600369) H2 2024 earnings summary

Executive summary

• Achieved revenue of RMB 2.57 billion in 2024, up 10.17% year-over-year; net profit attributable to shareholders was RMB 699 million, up 16.13% year-over-year; basic EPS was RMB 0.11, up 22.22% year-over-year.

• Total assets at year-end were RMB 83.25 billion, down 1.68% from the previous year; net assets were RMB 25.81 billion, up 1.58%.

• Cash dividend payout for 2024 totaled RMB 564.83 million, representing 80.76% of net profit attributable to shareholders.

• Maintained strong liquidity and compliance, with no major regulatory violations or overdue debts.

Financial highlights

• Operating income rose 10.17% year-over-year; net profit attributable to shareholders increased 16.13%.

• Operating cash flow was RMB 10.40 billion, a significant turnaround from the previous year.

• Gross margin for brokerage business was 51.54%; investment banking margin was 70.95%.

• ROE (weighted average) was 2.73%, up 0.34 percentage points year-over-year.

• Net capital at year-end was RMB 16.73 billion, up 7.14% year-over-year.

Outlook and guidance

• 2025 will focus on digital transformation, business innovation, and deepening reforms to enhance competitiveness.

• Plans to strengthen core businesses in brokerage, investment banking, asset management, and proprietary trading.

• Will continue to prioritize risk management, compliance, and ESG initiatives.