Direct hit on Guolian Securities performance briefing: Continuously sticking to annual targets, and the acquisition of Minsheng Securities is still ongoing

On the afternoon of September 20th, Guolian Securities held a 2024 interim performance briefing. Senior executives of the company including Chairman Ge Xiaobo, Vice President and CFO Yin Lei, Board Secretary Wang Jie, and Independent Director Wu Xingyu attended the meeting.

During this performance communication meeting, the senior management of the company disclosed the following important information:

1. Faced with market fluctuations and the resulting impacts, the company is actively responding, with second-quarter performance improving compared to the previous quarter.
2. The acquisition of Minsheng Securities is in progress, and the company will actively seize opportunities for external development.
3. The investment banking subsidiary Huaying Securities will continue to focus on the Beijing Stock Exchange IPO as a key business direction; continuously strengthen equity business development, increase reserves of high-quality refinancing projects, and seize opportunities for mergers and acquisitions.
4. In terms of wealth management business, accelerate the transformation of buyer-side investment advisory, continuously increase high-quality financial wealth management products.

Taking Active Measures to Address Revenue Decline

In the first half of 2024, Guolian Securities achieved operating income of 1.086 billion RMB, a year-on-year decrease of 39.91%; net profit attributable to the company's shareholders was 87.7093 million RMB, a year-on-year decrease of 85.39%. The company achieved operating income of 912 million RMB in the second quarter, with a net profit of 306 million RMB, showing a significant improvement in performance compared to the previous quarter. As of the end of the first half of 2024, the company's total assets were 93.333 billion RMB, an increase of 7.12% from the beginning of the year; equity attributable to the company's shareholders was 18.264 billion RMB, an increase of 2.79% from the beginning of the year.

Ge Xiaobo stated that due to market fluctuations, the performance of listed securities firms in the first half of 2024 was generally under pressure. The decline in performance in the first half of the year was mainly due to the poor performance of the domestic securities market index and trading activity, the decline in investor risk appetite, and the decrease in profitability of the company's securities investment business due to market fluctuations.

In response, the company actively took measures to optimize asset allocation while further strengthening risk control, leading to an improvement in performance in the second quarter.

Approval Needed for the Acquisition of Minsheng Securities

Regarding the progress of acquiring Minsheng Securities, Ge Xiaobo mentioned that on August 8, 2024, the company's board of directors approved the proposal related to this transaction, including the issuance of shares by Guolian Securities to purchase assets and raise matching funds, as well as the related party transaction report (draft) summary. On September 4, the shareholders' meeting reviewed and overwhelmingly approved the aforementioned related proposals.

In the future, this transaction still needs to be approved, approved, or registered by the competent regulatory authorities, and there is uncertainty about whether the aforementioned approvals, approvals, or registrations can be obtained and the time it will take.

If there are any new developments, the company will fulfill its disclosure obligations in a timely manner in accordance with relevant laws and regulations and the requirements of the stock exchange listing rules. After the approval is completed, the company will achieve consolidation through the issuance of shares to purchase assets.

Huaying Securities to Focus on Beijing Stock Exchange IPO

Regarding the strategic planning of future investment banking business, Ge Xiaobo introduced that since the end of August last year, the China Securities Regulatory Commission has strengthened countercyclical adjustments, temporarily tightened IPOs and refinancing, which has had a certain impact on securities companies' investment banking equity business in the short term In recent years, the company's investment banking subsidiary, Huaying Securities, has been adhering to the balanced development of stocks and bonds, continuously optimizing its revenue structure, enriching its project reserves, and maintaining a good development momentum. The number of stock and bond underwriters and the underwriting amount rankings have steadily improved.

In the future, Huaying Securities will continue to focus on the IPO market of the Beijing Stock Exchange, striving to enter the industry's forefront in terms of business rankings. It will continue to strengthen equity business development, increase reserves of high-quality refinancing projects, seize merger and reorganization opportunities, strictly implement full-process management from the project "entrance" to the later stages, continuously improve project and practice quality, effectively serve the high-quality development of the real economy, and accelerate the establishment of a boutique and distinctive investment bank.

Furthermore, the company will continue to promote the construction of a market-oriented mechanism system, continuously improve a human resources management system with company characteristics, and attract and retain outstanding talents.

Actively Seizing Opportunities for Outward Expansion

Regarding the company's future development plans, Secretary of the Board of Directors, Wang Jie, introduced that in the second half of 2024, the company will continue to focus on annual targets, balance long-term development with short-term performance pressure, actively seize opportunities for outward expansion, steadily and efficiently promote the merger and reorganization with Minsheng Securities, and accelerate the enhancement of the company's industry status and overall competitiveness.

At the same time, it will continue to adhere to its core business, enhance competitiveness and service capabilities, continuously improve the quality and efficiency of serving the real economy, and embody the humanistic nature of financial institutions.

In terms of wealth management business, the company will accelerate the transformation of buyer-side investment advisory, continuously increase the supply of high-quality financial wealth management products and services, and help increase residents' property income; in terms of investment banking business, it will effectively fulfill the role of "gatekeeper" in the capital market, promote the improvement of the quality of listed companies, and serve the construction of multi-level capital markets well; in terms of asset management business, it will steadily expand the scale of asset management under the premise of risk control; in terms of financial market business, it will focus on customer needs, enhance the ability to provide diversified and personalized comprehensive trading solutions, and play a leading role as the main force in maintaining market stability