Emperor Capital Group (HKG:0717) Announces 2009/2010 Annual Results Revenue and Net Profit Surges By 117.8% and 359.2% Respectively
Riding on the gradual recovery of the world economy, the Group reported revenue of approximately HK$201.9 million, representing a significant increase of 117.8%. Thanks to the Group's high operating efficiency and economy of scale, profit the Year attributable to the owners of the Company increased by 359.2% to HK$72.1 million. Basic earnings per share were HK8.33 cents. The Group recommends a final dividend of 1.5 HK cents per share, making the total dividend for the Year to 2.5 HK cents per share.
Ms. Daisy Yeung, Managing Director of ECG, said, "During the Year, we continued to implement its strategic development plan and achieved steady growth across all business lines. Especially for the segment of placing and underwriting, we participated in a number of IPO projects, joining the underwriting syndicates and brining in cornerstone investors for various IPO engagements, leveraging on the Group's strong connections and extensive market experiences."
During the Year, revenue generated from the brokerage services segment amounted to HK$85.6 million, accounting for 42.4% (2009: 64.9%) of the revenue of the Group. Thanks to the outstanding achievement of the Group's frontline teams, such revenue represented an increment of 42.4% over the revenue for the same period last year.
With respect to operation developments, the Group implemented various measures such as expanding its retail brokerage teams and improving its service, resulting in a notable surge in trading amount of institutional and retail investors. Meanwhile, the Group continued its efforts on expanding the division of wealth management to grasp the market opportunities on growing customers' demand for diversifying its assets under management.
During the Year, the strong market sentiment provided more incentives for fund raising and corporate exercise. Revenue from this segment was up by 112.1% to HK$47.3 million (2009: HK$22.3 million), showing the increasing market demand for margin and IPO financing, while the IPO drew much market attention.
Placing and Underwriting
During the Year under review, the Group achieved outstanding performance in this segment as a result of the positive sentiment towards IPO, fund raising and corporate exercise in the market. This segment recorded revenue of HK$62.3 million (2009: HK$7.33 million), accounting for 30.8% of the Group's total revenue and becoming its another major revenue source and growth driver.
The Group participated in a number of IPO projects, joining the underwriting syndicates and bringing in cornerstone investors for Evergrande Real Estate Group Limited (HKG:3333), Fantasia Holdings Group Co., Limited (HKG:1777), Kaisa Group Holdings Ltd. (HKG:1638) and Z-Obee Holdings Limited (HKG:0948).
During the Year, this segment recorded of HK$6.7 million (2009: HK$2.9 million) which accounted for 3.3% of the Group's total revenue. During the Year, it has been appointed financial adviser and independent financial adviser for a number of corporate transactions and secured four IPO sponsor mandates for companies seeking to be listed on both the Main Board and the GEM Board of the Hong Kong Stock Exchange.
Ms. Yeung concluded, "With the commencement of new business in asset management, we will allocate more resources to provide more and better products and services to cater the various investment needs of customers. Facing the rising use of internet, the Group has improved its current securities online trading platform for capturing the untapped market and creating value-added services to the existing customers. Looking forward, the Group will continue to provide a comprehensive one-stop investment platform, adopt the scientific outlook on development and push forward the implementation of its strategic development plan amid a complex and volatile economic environment."
For the complete Emperor Capital Group announcement including Financial Highlights Table, please refer to the following link below:
About Emperor Capital Group Limited
Established in 1993, Emperor Capital Group Limited (HKG:0717) is a renowned Hong Kong based brokerage house providing a wide range of financial services including brokerage services for securities, futures and options traded on the exchanges in Hong Kong, the USA, Japan and United Kingdom; as well as insurance and other wealth management products. It also provides margin and other financing services and corporate finance advisory services.
Z-Obee Holdings Limited
Kaisa Group Holdings Limited
Fantasia Holdings Group Co., Limited
Evergrande Real Estate Group Limited
Emperor Capital Group Limited