Emperor Capital Group posts profit at HK$62.1mn

The first Emperor fund & money lending business will become new revenue drivers.

Emperor Capital Group Limited (the “Group” or “ECG”), a one-stop comprehensive financial services centre in Hong Kong announced Thursday its 2011 annual results announcement for the year ended 30 September 2011 (the “Year”).

During the Year, the Group reported revenue and profit for the Year of approximately HK$204.4 million and HK$62.1 million respectively. Basic earnings per share was HK4.39 cents. The Group declared a final dividend of HK0.38 cent per share. Together with the interim dividend of HK1 cent per share, the total dividend per share for the Year was HK1.38 cents.

Ms. Daisy Yeung, Managing Director of ECG, said, “Dedicated to the Group’s continuous efforts on business development and comprehensive services, the Group was ranked as the Top 5 “2010 Best Overall Local Brokerage” in Asia Money Magazine. Riding on the increasing commercial opportunities from China, the Group is fully capable to handle the trading and settlement of RMB-denominated stocks listed on the Hong Kong Stock Exchange. Besides, a liaison office in Beijing has been newly set up in October this year so as to further extend our coverage to the northern China.”

Brokerage
Revenue generated from the brokerage services segment amounted to HK$98.7 million, accounting for 48.3% of the revenue of the Group. Riding on the strong customer loyalty and extensive branch network, the Group’s frontline teams is able to drive a revenue growth of 15.3%.
In order to further enhance the Group’s comprehensive network in HK and expand the client base, a branch was newly established in Yuen Long in August 2011. Besides, the launching of mobile trading platforms also created value-added services for the existing customers and expand the market horizon.
With respect to the wealth management team, the Group continued to focus on investors from China in relation to Capital Investment Entrant Scheme to grasp the market opportunities on the growing customers’ demand for diversifying its assets under wealth management, according to an Emperor Capital Group report.

Loans and Financing
Market sentiment provided incentives for fund raising and corporate exercise during the Year. Driven by the market demand, revenue from this segment was up by 35.1% to HK$64.0 million, comparing the same period last year.

Placing and Underwriting
This segment recorded revenue of HK$29.0 million, accounting for 14.2% of the Group’s total revenue. The Group participated in numerous fund-raising engagements during the Year while the number of non-IPO engagements increased. Riding on the solid client base and professional team, the Group secured more encore clients to do the secondary market financing services.

Corporate Finance
Revenue of this segment was up by 81.9% to HK$12.1 million, accounting for 5.9% of the Group’s total revenue. During the Year, the Group not only undertook sponsor work for IPO engagements, but also offered financial advisory services on merger & acquisition and corporate restructuring work of listed companies. In May 2011, the Group has successfully sponsored GreaterChina Professional Services Limited to list on the GEM Board of the Stock Exchange where the Group also acted as the co-manager in the IPO share placing.

Asset Management
In order to cater various investment needs of customers, the Group commenced a new business segment in asset management. It has set up the first Emperor Fund, with the focus on equities in the Greater China region, during the Year. As at 30 September 2011, the revenue of this segment was HK$613,000, accounting for 0.3% of the Group’s total revenue.

Ms. Yeung supplemented, “With the commencement of new business in asset and fund management, we will widen the product and service range for catering the various investment needs of customers. More importantly, the first Emperor Fund, with the focus on equities in the Greater China region, has closed the book in September 2011. It is expected to be the new revenue sources of income in the next financial year.”

With the well-established base of margin financing, the Group takes a good chance to accelerate the expansion of the money lending business and second mortgage loan to generate stable income steam.

Looking forward, the Group will continue to provide a comprehensive one-stop consultation advisory and investment platform for customers. As investors nowadays have grown increasingly sophisticated and taken more prudent approach during the volatile market, the Group will provide tailor-made and quality investment solutions for its customers with scientific and professional assessment to satisfy their needs.