On August 29, CITIC Securities held an interim results briefing. Zhang Youjun, chairman of the company, and other senior executives attended.

The 2024 semi-annual report shows that CITIC Securities achieved operating income of 30.183 billion yuan, a year-on-year decrease of 4.18%; net profit to mother was 10.57 billion yuan, a year-on-year decrease of 6.51%.

Zhang Youjun responded to a number of investors' concerns during this briefing session. Shishido has compiled the key points below for the benefit of readers.

Response to mid-term dividends

According to CITIC Securities's mid-term profit distribution plan for 2024, the brokerage firm plans to distribute 2.40 yuan (tax included) for every 10 shares in the form of cash dividends.

At the performance briefing, Zhang Youjun said that since the A-share listing in 2003, CITIC Securities has implemented a cumulative dividend of RMB 81 billion. Over the past 3 years, the company's cash dividend ratio has remained above 30%.

He further pointed out that the company has actively implemented the requirement of “multiple dividends in a year” in the nine new capital market regulations. Yesterday, the board of directors reviewed and approved CITIC Securities's 2024 mid-term profit distribution plan. This time, a total cash dividend of RMB 3.557 billion (tax included) was distributed, accounting for 34.89% of the net profit attributable to common shareholders of listed companies in the 2024 interim consolidated statement. The next step is to be submitted to the shareholders' meeting for consideration.

Discuss public offering fee cuts

Zhang Youjun said at the briefing that the introduction and implementation of new regulations to reduce fees for public funds may have a certain impact on the company's revenue in the short term. However, the company has responded positively. It has formulated a special work plan, adjusted and adapted to the new rules and requirements, insisted on and encouraged value investment and long-term investment, increased the scale of income in multiple ways, and adapted to the new model and requirements of wealth management development.

Commenting on international strategies

According to Hong Kong Financial Reporting Standards, CITIC Securities International recorded total revenue of 0.98 billion US dollars and net profit of 0.23 billion US dollars in the first half of 2024, up 22.2% and 68.4% respectively from the same period last year.

Zhang Youjun responded at the performance briefing: CITIC Securities International's market share and revenue contributions outside Hong Kong have further increased. In terms of product types, CITIC Securities International has insisted on promoting new business and product launch, respectively, launching a Wo Lun market making business in Hong Kong, ETF market making in Hong Kong and Singapore, Indian options trading, and vigorously expanding overseas exchange business.

He also revealed that the company will continue to expand and deepen its market layout in Japan and Southeast Asia, and actively investigate the possibility of business layout in the Middle East region.

First anniversary of being transferred to CITIC Financial Holdings

In July 2023, CITIC Financial Holdings was approved to become the largest shareholder of CITIC Securities. CITIC Financial Holdings has four members, namely China CITIC Bank, CITIC Securities, CITIC Trust, and CITIC Prudential, with total assets of 10 billion yuan.

On the first anniversary of the above incident, Zhang Youjun responded: CITIC Financial Holdings is pushing the company to invest more accurately in resources and strengthen segments with high returns and strong competitiveness; on the other hand, Financial Holdings is also responding positively to the company's development demands, supporting the company to further expand its business scale and enhance its profitability and core competitiveness.