Executive Summary
Weihai Bank reported QQ3 2024 revenue of CNY 1,178,789,000, up 13.05% year over year (YoY) and down 1.21% quarter over quarter (QoQ). The company generated an operating income of CNY 578,493,500, translating to an operating margin of approximately 49.1% on revenue, while net income reached CNY 458,616,500 and basic earnings per share (EPS) of CNY 0.0587. The net income YoY growth of 36.6% reflects an improving bottom line despite a softer QoQ rhythm in the third quarter. However, ROE remains modest at about 1.59%, signaling underutilization of capital relative to broader Chinese banking peers.
From a balance sheet perspective, Weihai Bank continues to exhibit strong liquidity with cash and cash equivalents of CNY 13.33B and a current ratio of 1.37, supported by total assets of CNY 441.46B against liabilities of CNY 410.67B and equity of CNY 28.90B. The long-term debt load stands at CNY 14.70B, with net debt of roughly CNY 1.36B, indicating a conservative capital structure. Cash flow was negative from operations (approx. CNY -0.54B) as working capital and other non-cash items influenced near-term cash generation, while financing activities provided constructive funding (approx. CNY 6.20B) to offset significant investing outlays (approx. CNY -6.39B). The quarterly free cash flow was negative by about CNY -0.201B, consistent with the investment trajectory evident in non-current assets and strategic capability build.
Overall, the QQ3 2024 result set suggests a bank transitioning toward growth through broadened fee-based and wealth management opportunities, while maintaining prudent liquidity and capital discipline. Investors should monitor profitability normalization (ROE uplift), balance sheet quality, and the cadence of investment-led cash outflows versus financing-driven liquidity support.
Key Performance Indicators
QoQ: -21.52% | YoY:15.31%
QoQ: -14.63% | YoY:36.58%
Key Insights
Revenue: CNY 1,178,789,000; YoY +13.05%, QoQ -1.21%
Gross Profit: CNY 1,178,789,000; YoY +13.05%, QoQ -1.21%
Operating Income: CNY 578,493,500; YoY +15.31%, QoQ -21.52%
Net Income: CNY 458,616,500; YoY +36.58%, QoQ -14.63%
EPS: CNY 0.0587; YoY +4.45%, QoQ -34.63%
Net Income Margin: 0.389
Operating Margin: 0.491
Pre-tax Margin: 0.4626; Income Before Tax: CNY 545,255,000
Tax Expense: CNY 40,311,000; Effective Tax Rate: 7.39%
ROE: 1.59%
Current Ratio: 1.37; Cash Ratio: 1.37; Quick Ratio: 1.37
Total...
Financial Highlights
Revenue: CNY 1,178,789,000; YoY +13.05%, QoQ -1.21%
Gross Profit: CNY 1,178,789,000; YoY +13.05%, QoQ -1.21%
Operating Income: CNY 578,493,500; YoY +15.31%, QoQ -21.52%
Net Income: CNY 458,616,500; YoY +36.58%, QoQ -14.63%
EPS: CNY 0.0587; YoY +4.45%, QoQ -34.63%
Net Income Margin: 0.389
Operating Margin: 0.491
Pre-tax Margin: 0.4626; Income Before Tax: CNY 545,255,000
Tax Expense: CNY 40,311,000; Effective Tax Rate: 7.39%
ROE: 1.59%
Current Ratio: 1.37; Cash Ratio: 1.37; Quick Ratio: 1.37
Total Assets: CNY 441.46B; Total Liabilities: CNY 410.67B; Total Equity: CNY 28.90B
Long-Term Debt: CNY 14.70B; Net Debt: CNY 1.36B
Cash & Cash Equivalents: CNY 13.33B; Free Cash Flow: (CNY) -0.201B
Payout Ratio: 23.6%; Dividend Yield: 0.56%
Price/Book: 0.67; P/E: 10.49; Price/Sales: 16.32
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.18B |
13.05% |
-1.21% |
| Gross Profit |
1.18B |
13.05% |
-1.21% |
| Operating Income |
578.49M |
15.31% |
-21.52% |
| Net Income |
458.62M |
36.58% |
-14.63% |
| EPS |
0.06 |
4.45% |
-34.63% |
Key Financial Ratios
operatingProfitMargin
49.1%
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0.03
dividendPayoutRatio
23.6%
Management Commentary
No earnings call transcript has been supplied with the data set. As a result, no management quotes or thematic insights from the QQ3 2024 earnings call are available within this dataset. If a transcript becomes accessible, the highlights can be added to reflect management commentary on revenue mix, cost discipline, credit quality, and medium-term guidance.
Forward Guidance
No explicit forward guidance was included in the provided data. Given the current quarter’s earnings trajectory, investors should consider: (1) potential income uplift from diversified fee and wealth management products to support top-line growth; (2) cost containment to lift operating efficiency and contribute to a higher ROE; (3) balance sheet improvements to enhance asset quality and reduce non-core risk; and (4) the cadence of capital allocation, including dividends and buybacks, in relation to regulatory expectations. Key factors to monitor include deposit growth, loan mix, NIM trajectory, credit risk indicators, and the bank’s capacity to translate revenue growth into sustained profitability amidst a high-liability environment.