Western Securities Co. (002673) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 3.33 billion, down 15.39% year-over-year; net profit attributable to shareholders was RMB 653.60 million, down 8.42% year-over-year.

• Decline in revenue mainly due to lower investment banking and commission income, partially offset by growth in asset management fees.

• Cash flow from operating activities improved significantly to RMB 3.46 billion from a negative RMB 26 million in H1 2023.

• Proposed interim cash dividend of RMB 0.10 per 10 shares, totaling RMB 44.70 million.

Financial highlights

• Operating income: RMB 3.33 billion, down 15.39% year-over-year.

• Net profit attributable to shareholders: RMB 653.60 million, down 8.42% year-over-year.

• Basic and diluted EPS: RMB 0.1462, down 8.45% year-over-year.

• Total assets: RMB 94.75 billion, down 1.53% from end-2023; net assets attributable to shareholders: RMB 28.19 billion, up 0.88%.

• Asset management fee income up 82.40% year-over-year; investment banking fee income down 60.49%.

Outlook and guidance

• Management highlights ongoing market volatility and regulatory tightening as key challenges.

• No specific quantitative guidance for Q3 or full-year 2024 due to market uncertainties.

• Focus remains on digital transformation, risk management, and business structure optimization.