The first annual report after the merger of Guotai Junan Securities and Haitong Securities is out: Capital strength ranks first in the industry, with a dividend rate as high as 48%!

On the evening of March 28, Guotai Haitong (stock abbreviation "Guotai Junan") released its 2024 annual report.

In 2024, Guotai Junan and Haitong Securities achieved a strong alliance and complementary advantages through a merger, taking an extremely critical step towards creating a first-class investment bank. According to the financial data of the two companies at the end of 2024, the merged company has total assets of 1.73 trillion yuan and net assets attributable to the parent company of 328.3 billion yuan, with "capital strength ranking first in the industry."

At the same time, Guotai Junan generously distributed dividends. The total amount of cash dividends distributed by Guotai Junan, including the cash dividends already distributed in the interim, exceeds 62.58 yuan (including tax), accounting for 48.05% of the net profit attributable to the parent company in the 2024 consolidated financial statements.

Revenue and Profit Both Increase

The annual report shows that by the end of 2024, Guotai Junan's total consolidated assets approached 1.05 trillion yuan, an increase of 13.22% compared to the end of the previous year; consolidated operating income was 43.397 billion yuan, a year-on-year increase of 20.08%; net profit attributable to the parent company was 13.024 billion yuan, and net profit attributable to the parent company after deducting non-recurring gains and losses was 12.440 billion yuan, representing year-on-year increases of 38.94% and 42.70%, respectively; the return on equity was 8.14%, an increase of 2.12 percentage points year-on-year.

Wealth Management, Institutional and Trading Businesses Flourish

In terms of various businesses, Guotai Junan strengthened customer expansion in wealth management, enhancing the asset allocation capabilities of buyers, maintaining a leading position in securities brokerage, and significantly increasing the scale of product sales and fund advisory services; the investment banking business deepened collaborative mechanisms, fully extending the business chain, with continuous improvement in main business rankings and market share; the institutional and trading business strengthened customer management, optimized trading investment strategies, and continuously enhanced customer service and trading pricing capabilities; the investment management business strengthened research and investment capabilities, promoted product innovation and diversified development, and maintained growth in managed asset scale; the international business optimized the top-level structure, continuously promoted cross-border integration and overseas layout, with excellent performance.

It is worth mentioning that the wealth management business and the institutional and trading business both showed significant year-on-year growth and made substantial contributions to operating income. In particular, the institutional and trading business achieved operating income of 21.353 billion yuan, with a year-on-year increase of over 43%.

In the wealth management business, by the end of the reporting period, the number of Junhong APP users reached 41.6397 million, an increase of 3.0% compared to the end of the previous year, with an average monthly active user count of 8.8471 million, a year-on-year increase of 11.1%. The number of personal fund accounts was 19.3194 million, an increase of 8.3% compared to the end of the previous year, among which the number of affluent and high-net-worth clients increased by 17.9% compared to the end of the previous year. The asset retention scale of the "Junxiang Investment" advisory business reached 26.416 billion yuan, an increase of 107.5% compared to the end of the previous year. During the reporting period, the domestic stock fund trading share was 5.17%, an increase of 0.41 percentage points compared to the previous year; The sales of financial products reached 950.5 billion yuan, a year-on-year increase of 27.7%, while the average monthly holding of financial products was 258.9 billion yuan, a year-on-year increase of 6.9%.

In addition, international business also achieved a year-on-year revenue growth of over 34%.

Cash Dividend Ratio Exceeds 48%

Guotai Junan Securities' profit distribution plan for 2024 is based on the total share capital of the company after deducting the shares held in the repurchase special securities account on the equity registration date of this dividend distribution, with a cash dividend of 2.8 yuan (including tax) distributed to A-share and H-share shareholders for every 10 shares.

Guotai Junan has completed the share exchange absorption merger with Haitong Securities and raised supporting funds on March 14, 2025. If calculated based on the total number of shares issued by the company on the date of the board meeting approving the 2024 profit distribution plan, excluding the shares in the repurchase special securities account, the total cash dividend to be distributed is close to 4.923 billion yuan (including tax).

The total amount of cash dividends distributed by Guotai Junan includes approximately 1.335 billion yuan of cash dividends already distributed in the interim, totaling over 6.258 billion yuan (including tax), accounting for 48.05% of the net profit attributable to the parent company in the consolidated financial statements for 2024.

The company's profit distribution plan for 2024 has been reviewed and approved by the 16th meeting of the 6th Board of Directors and is subject to approval by the company's shareholders' meeting. After the profit distribution proposal for 2024 is approved by the shareholders' meeting, the cash dividend distribution will be carried out within two months from the date of the annual shareholders' meeting.

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