The most insightful securities firm semi-annual report appears, "new force" Guolian Securities "vibrant words"

On August 30, Guolian Securities disclosed its 2024 interim report.

As a "new force" in the industry, Guolian Securities has been innovating and advancing its business with rare courage in recent years. In this interim report, it also has many novel expressions different from its peers.

In the "Management Discussion and Analysis" section, Guolian Securities mentioned that in 2024, the domestic and international macroeconomic environment is complex, with global economic growth momentum shifting. The economic momentum in the United States gradually declined from the strong growth in 2023, the European economy warmed from the edge of recession, and the global inflation situation continued to remain differentiated.

Guolian Securities also mentioned: From the perspective of the securities industry competition landscape, in recent years, the net profit growth rate of top securities firms has been significantly better than the industry average, and the overall net profit volatility of top brokerages is smaller, demonstrating a more resilient profitability across cycles.

In April 2024, the China Securities Regulatory Commission proposed moderately broadening the capital space for high-quality institutions, supporting top institutions to become stronger through mergers and acquisitions, organizational innovation, and other means. A new round of supply-side reforms in the securities industry from top to bottom has begun, and the industry landscape will evolve faster.

At the same time, in terms of industry development, the China Securities Regulatory Commission proposed guiding small and medium-sized institutions to combine shareholder characteristics, regional advantages, resource endowments such as talent reserves, and professional capabilities to refine their operations and achieve distinctive and differentiated development, pointing the way for the growth of regional securities firms.

Guolian Securities also mentioned in the interim report that the company has "unique geographical advantages," "dual listing of A+H shares to enhance the company's market competitiveness and risk resistance," "an experienced management team in the industry," as well as "prudent, efficient operational management, and careful risk control" as advantages.

The interim report also shows that during the reporting period, Guolian Securities' operating income was 1.086 billion yuan, a year-on-year decrease of 39.91%; net profit attributable to shareholders was 88 million yuan, a year-on-year decrease of 85.39%.

Furthermore, the brokerage and wealth management business achieved revenue of 378 million yuan, a year-on-year increase of 1.36%; investment banking business achieved revenue of 173 million yuan, a year-on-year decrease of 42.76%; credit trading business achieved revenue of 127 million yuan, a year-on-year decrease of 17.07%; securities investment business achieved revenue of 12 million yuan, a year-on-year decrease of 98.41%.

The brokerage and wealth management business, which accounts for the largest proportion of main business income (nearly 35%), achieving slight growth is quite challenging. Among them, asset management and investment business are relatively bright spots for growth. During the period, the asset management and investment business achieved revenue of 321 million yuan, a year-on-year increase of 98.31%.

Additionally, during the reporting period, Guolian added 119,400 new clients, with a total cumulative client base of 1.8558 million, a year-on-year increase of 10.06%.

As of the end of the reporting period, the total number of signed clients for fund investment advisory services was 319,400, a year-on-year increase of 13.35%, with authorized account assets under management of 6.958 billion yuan, which remained relatively stable year-on-year, and a total of 30 cooperation channels were launched In terms of financial product sales, the company is increasing the assessment of product holdings to guide the sales concept towards a more allocation-oriented approach. During the reporting period, the company's financial product sales volume (excluding the "Cash Plus" cash management product) was 9.647 billion yuan, a decrease of 14.24% year-on-year, with financial product holdings at the end of the period at 19.37 billion yuan, basically flat year-on-year.

The announcement indicates that Guolian Securities does not plan to distribute profits or convert reserves into share capital for the first half of 2024