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As listed companies are intensively disclosing their semi-annual reports, the operating performance data of the controlling and shareholding fund companies in the first half of the year are announced one by one.

With the release of the 2024 semi-annual reports of Great Wall Securities, Guoyuan Securities, and China Post Fund, which is listed on the New Third Board, yesterday, as of August 27, 22 fund companies have disclosed their operating data for the first half of 2024.

Overall, only 5 out of the 22 companies achieved year-on-year revenue growth in the first half of this year, and 4 achieved year-on-year net profit growth. Some companies experienced increased revenue but no increased profit, or increased net profit while revenue declined. As of now, only 3 companies have achieved year-on-year growth in revenue and net profit.

Among the 17 fund companies that saw a year-on-year decline in net profit, 10 saw a year-on-year decline of more than 30%. In terms of net profit ranking, as of now, 7 fund companies have a net profit of more than 100 million yuan, a decrease of 3 year-on-year; 2 fund companies were in a loss in the first half of the year.

7 fund companies' net profits exceeded 100 million yuan

Among the above-mentioned fund companies that have disclosed their operating results, seven fund companies had a net profit of more than 100 million yuan in the first half of this year, which is three fewer than the same period last year.

China Asset Management temporarily leads with a net profit of 1.062 billion yuan, and is the only fund company with a net profit of more than 1 billion yuan as of August 26. In the first half of this year, China Asset Management achieved operating income of 3.669 billion yuan, which is slightly lower than the same period last year, with revenue and net profit down by 1.13% and 1.21% respectively.

Following closely behind is GF Fund. In the first half of this year, GF Fund achieved a net profit of 822 million yuan and operating income of 3.191 billion yuan. However, compared with the same period last year, net profit and operating income fell by 32.36% and 26.41% respectively.

In terms of the scale of non-commodity public funds under management, according to Wind data, as of the end of June this year, Hua Xia Fund and GF Fund ranked second and third in the industry in terms of management scale, an increase of 134.248 billion yuan and 112.6 billion yuan respectively from the end of last year.

Invesco Great Wall Fund, which Great Wall Securities holds a 49% stake in, ranked third with a net profit of 481 million yuan, a year-on-year decrease of 25.69%; its operating income in the first half of this year was 1.678 billion yuan, a year-on-year decrease of 17.56%. Great Wall Fund, which Great Wall Securities holds a 47.06% stake in, also had a net profit of more than 100 million yuan in the first half of this year, reaching 127 million yuan, a year-on-year increase of 7.05%; its operating income in the first half of this year was 525 million yuan, a year-on-year decrease of 9.58%.

Penghua Fund achieved a net profit of 382 million yuan in the first half of this year, a year-on-year decrease of 21.72%; operating income was 1.789 billion yuan, a year-on-year decrease of 15.51%. As of the end of June 2024, Penghua Fund's asset management scale was 1.2 trillion yuan (excluding subsidiaries), of which the public fund management scale was 939 billion yuan, an increase of 16.44% from the beginning of the year, and the asset management scale remained in the first echelon of the industry.

The net profits of two bank-affiliated fund companies, Industrial Bank Fund and PuRong Ansheng Fund, also exceeded 100 million yuan in the first half of the year.

Among them, Industrial Bank Fund's revenue in the first half of the year was 535 million yuan, a year-on-year decrease of 18.2%; net profit was 167 million yuan, a year-on-year decrease of 37.45%. Industrial Bank's 2024 semi-annual report mentioned that during the reporting period, Industrial Bank Fund continued to enrich its retail bond funds, and equity funds established a product strategy based on "absolute returns". At the same time, it increased its overseas asset allocation efforts to enrich investors' investment options. In the first half of 2024, the scale of public funds managed by Industrial Bank Fund increased by 20.80% to 316.324 billion yuan; the scale of non-money funds under management was 217.735 billion yuan, an increase of 12.88% from the end of the previous year.

PuRong Anxin Fund achieved operating income of 624 million yuan and net profit of 133 million yuan, down 1.42% and 20.83% year-on-year respectively.

Overall revenue performance is differentiated

Overall, the disclosed operating performance of fund companies in the first half of 2024 is differentiated. Xinyuan Fund, Xingyin Fund, Great Wall Fund, and Changsheng Fund have become the four companies that have achieved positive year-on-year growth in net profit so far. Among them, Xinyuan Fund's net profit in the first half of this year was 37.437 million yuan, a year-on-year increase of 70.78%; Xingyin Fund's net profit increased by 51.67% year-on-year.

The growth in the scale of fixed income products of the two fund companies has significantly raised the company's ranking in non-cash management scale in the first half of this year. The resulting fee income may be one of the reasons for the increase in net profit.

Wind data shows that as of the end of June this year, Xinyuan Fund's non-monetary management scale was 126.917 billion yuan, ranking 37th in the industry, an increase of 25.617 billion yuan from the end of last year, up 8 places, of which the bond fund scale increased by 25.843 billion yuan to 124.212 billion yuan; Xingyin Fund's non-monetary management scale was 71.205 billion yuan at the end of June this year, ranking 59th in the industry, an increase of 7.369 billion yuan from the end of last year, up 1 place, and the bond fund management scale increased by 8.315 billion yuan.

As one of the shareholders of Xingyin Fund, Guomai Technology's 2024 semi-annual report also mentioned that it holds 24% of the shares of Xingyin Fund, and generated investment income of 12.8222 million yuan in the reporting period, an increase of 4.3680 million yuan year-on-year, mainly due to the year-on-year increase in net fee income from Xingyin Fund's asset management business.

The aforementioned Great Wall Fund and Changsheng Fund also achieved positive year-on-year growth in net profit in the first half of this year. The two fund companies also have a high proportion of bond fund scale. Both the scale and ranking of non-cash funds increased in the first half of this year.

On the other end of the ranking, the net profits of nine fund companies in the first half of the year shrank by more than 30% year-on-year, and four of them suffered losses of more than 50%.

In addition, there are two fund companies that suffered losses in the first half of the year. The 2024 semi-annual report of Soochow Securities mentioned that as of the end of June this year, Soochow Fund had a public fund size of 28.731 billion yuan and a special account size of 2.167 billion yuan. The size of public and special accounts increased by nearly 10% compared with the end of last year; the total size of equity funds was 7.522 billion yuan, an increase of 50% compared with the end of last year. However, the company's revenue and net profit both shrank, and the net profit turned from profit to loss compared with the same period last year.

How to deal with the second half of the year?

In response to the general decline in profits in the first half of the year, the semi-annual report also mentioned the strategies of some fund companies in the second half of the year.

For example, the aforementioned Soochow Fund continued to improve its product line in the first half of the year, cultivated fixed income and cash management products, actively responded to market fluctuations, carried out all-round continuous marketing services for featured equity funds, and steadily promoted public REITs. In the second half of the year, they will further strengthen investment research capabilities, optimize investment strategies, and promote steady improvement in product performance and rankings. Actively expand sales channels, transform product performance advantages into growth in management scale, and further expand potential REITs projects in Suzhou and Jiangsu.

Guohai Securities' semi-annual report mentioned that Guohai Franklin Fund will closely follow market changes, continuously increase research efforts, optimize and improve investment methods, adhere to fundamental research-driven, appropriately reverse investment methods, increase investors' sense of gain through long-term stable performance, and establish the company's "bottom-line" brand image in the market. Second, further consolidate the advantages of equity and overseas investment, while improving the fixed income product line and steadily expanding the scale of fixed income.

In addition, the company will further develop high-quality traditional channels and continue to deepen business cooperation with new channels and brokerage channels. It will expand its management scale through IPO and holding cycles, continuously develop institutional clients such as brokerages, trusts, and fund investment advisors, and further develop and maintain third-party sales agencies. It will make full use of shareholder advantages, comprehensively promote the development of international business, and expand new business growth points.