阿仕特朗金融(08333) - 2019 Q1 - 季度财报

Performance Summary First Quarter Performance Highlights The company achieved a turnaround to profit in the first quarter of 2019, recording a profit of approximately HKD 2.0 million, primarily driven by a 37.9% year-on-year increase in revenue to HKD 8.0 million, with the Board declaring an interim dividend of HKD 0.005 per share Key Performance Indicators for Q1 2019 | Indicator | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :--- | :--- | :--- | | Revenue | Approx. HKD 8.0 million | Approx. HKD 5.8 million | | Profit/(Loss) Attributable to Owners of the Company | Profit approx. HKD 2.0 million | Loss approx. HKD 0.7 million | | Basic Earnings/(Loss) Per Share | Earnings HKD 0.25 cents | Loss HKD 0.09 cents | | Interim Dividend | HKD 0.005 per share | N/A | - The Board declared an interim dividend of HKD 0.005 per share for the three months ended March 31, 2019, totaling HKD 4,000,000, on May 7, 2019[6] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the three months ended March 31, 2019, the company achieved a turnaround to profit, recording HKD 2.031 million in profit attributable to owners, compared to a HKD 0.737 million loss in the prior year, primarily due to revenue increasing from HKD 5.778 million to HKD 8.007 million and effective control over administrative expenses Consolidated Statement of Profit or Loss | Item | Three Months Ended March 31, 2019 (HKD thousand) | Three Months Ended March 31, 2018 (HKD thousand) | | :--- | :--- | :--- | | Revenue | 8,007 | 5,778 | | Other income | 130 | 128 | | Administrative and other operating expenses | (5,895) | (6,564) | | Profit/(Loss) before tax | 2,231 | (737) | | Income tax expense | (200) | – | | Profit/(Loss) for the period attributable to owners of the Company | 2,031 | (737) | | Basic earnings/(loss) per share (HK cents) | 0.25 | (0.09) | Condensed Consolidated Statement of Changes in Equity As of March 31, 2019, the company's total equity increased to HKD 185.562 million from HKD 183.531 million at the beginning of the year, with the HKD 2.031 million increase entirely attributable to the profit recorded during the period Summary of Statement of Changes in Equity | Item (HKD thousand) | Share capital | Share premium | Special reserve | Retained profits | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at January 1, 2019 | 8,000 | 77,179 | 38,401 | 59,951 | 183,531 | | Profit and total comprehensive income for the period | – | – | – | 2,031 | 2,031 | | Balance at March 31, 2019 | 8,000 | 77,179 | 38,401 | 61,982 | 185,562 | Notes to the Condensed Consolidated Financial Statements This section of the notes details the basis of financial statement preparation, application of accounting policies, and provides a breakdown of key items such as revenue, expenses, taxation, dividends, and earnings per share, noting the adoption of HKFRS 16 Leases from January 1, 2019, which had no material impact on the current period's financial statements - The Group primarily engages in providing brokerage services, placing and underwriting services, corporate finance advisory services, financing services, and asset management services[12] - Effective January 1, 2019, the Group adopted Hong Kong Financial Reporting Standard 16 Leases, with no material impact on the reported amounts for the three months ended March 31, 2019[17] Revenue Analysis Total revenue for the quarter was HKD 8.007 million, a 38.5% year-on-year increase, primarily driven by a significant surge in placing and underwriting commissions from HKD 0.3 million to HKD 4.206 million, despite notable declines in brokerage and asset management service fees Revenue Composition (Three Months Ended March 31) | Service Type | 2019 (HKD thousand) | 2018 (HKD thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Brokerage service commissions | 612 | 1,279 | -52.2% | | Placing and underwriting commissions | 4,206 | 300 | +1302% | | Corporate finance advisory service fees | 2,170 | 2,400 | -9.6% | | Interest income from securities and IPO financing | 704 | 743 | -5.2% | | Asset management service fees | 315 | 1,056 | -70.2% | | Total | 8,007 | 5,778 | +38.5% | Profit/Loss Before Tax Analysis The quarter recorded a HKD 2.231 million profit before tax, compared to a HKD 0.737 million loss in the prior year, with improved profitability primarily attributed to cost control, notably a reduction in employee benefit expenses from HKD 4.114 million to HKD 3.597 million - Employee benefit expenses, a major administrative and operating cost, decreased from HKD 4.114 million in the prior year to HKD 3.597 million in the current period, significantly contributing to the achieved profitability[24] Dividends The Board declared an interim dividend of HKD 0.005 per share for the three months ended March 31, 2019, totaling HKD 4.0 million, on May 7, 2019, which was not recognized as a liability on the balance sheet as of March 31, 2019 - The Board declared an interim dividend of HKD 0.005 per share, totaling HKD 4,000,000[28] Earnings/Loss Per Share Based on a weighted average of 800 million ordinary shares, the quarter achieved basic and diluted earnings per share of HKD 0.25 cents, a significant improvement from a HKD 0.09 cents loss per share in the prior year, with diluted earnings per share equal to basic earnings per share due to no dilutive potential ordinary shares outstanding - Basic earnings per share for the current quarter was HKD 0.25 cents, compared to a basic loss per share of HKD 0.09 cents in the prior year[8][30] - The weighted average number of ordinary shares used for calculation was 800,000,000[30] Management Discussion and Analysis Business Review The Group successfully turned to profit in the first quarter of 2019, primarily due to the completion of three placing and underwriting transactions contributing approximately HKD 4.2 million in revenue, despite significant declines in brokerage and asset management service income, while corporate finance advisory and financing services remained relatively stable - The financial results for the first quarter of 2019 shifted from a loss to a profit, mainly due to the Group completing three placing and underwriting transactions that generated approximately HKD 4.2 million in revenue[32] - Revenue from brokerage and asset management services significantly decreased, while corporate finance advisory and financing services remained relatively stable[32] Financial Review Total revenue for the period increased by 37.9% to HKD 8.0 million, primarily driven by placing and underwriting activities, while administrative and other operating expenses decreased by 10.6% to HKD 5.9 million, mainly due to reduced employee benefit expenses, resulting in a turnaround from a HKD 0.7 million loss in the prior year to a HKD 2.0 million profit in the current period - Total revenue increased by approximately 37.9% to HKD 8.0 million, primarily attributable to an increase in the number of placing and underwriting engagements[33] - Administrative and other operating expenses decreased by approximately 10.6% to HKD 5.9 million, mainly due to reductions in employee benefit expenses and commission expenses[37] - Due to increased revenue and decreased expenses, a profit of approximately HKD 2.0 million was recorded for the period, compared to a loss of approximately HKD 0.7 million in the prior year[39] Outlook Looking ahead to 2019, management anticipates global economic uncertainties, including the US-China trade war, US interest rate hikes, and China's economic slowdown, will foster cautious market sentiment, posing challenges for the Hong Kong stock market and the Group's business, thus the Group will remain vigilant to pursue sustainable revenue and balanced growth, having completed two placing and underwriting engagements and one corporate finance advisory project post-reporting period - Management believes the global economy in 2019 is fraught with variables, including the US-China trade war, US interest rate hikes, Brexit, and China's economic slowdown, which will constrain Hong Kong's economic performance and impact the Group's results[41] - As of the report date, the Group has completed two placing and underwriting engagements and one corporate finance advisory engagement since March 31, 2019, with one additional corporate finance advisory engagement currently in progress[41] Other Information Directors' and Major Shareholders' Interests As of March 31, 2019, Mr. Poon Chik, the company's Chairman, held 532,685,000 shares, representing 66.59% of the issued share capital, through his wholly-owned Autumn Ocean Limited, with his spouse, Ms. Liu Mingli, deemed to have an interest in these shares Major Shareholder Interests (As of March 31, 2019) | Name/Designation | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Poon | Interest in controlled corporation | 532,685,000 | 66.59% | | Ms. Liu Mingli | Spouse's interest | 532,685,000 | 66.59% | | Autumn Ocean Limited | Beneficial owner | 532,685,000 | 66.59% | Corporate Governance The company complied with most provisions of the Corporate Governance Code during the reporting period, with one deviation: the roles of Chairman and Chief Executive Officer are not segregated, both held by Mr. Poon Chik, which the Board believes benefits the Group's operations and management by providing strong and consistent leadership - The company deviated from Corporate Governance Code Provision A.2.1, which stipulates the segregation of roles between the Chairman and Chief Executive Officer, as Mr. Poon Chik holds both positions[57] - The Board believes that Mr. Poon's dual role as Chairman and Chief Executive Officer is beneficial to the Group's operations and management, providing strong and consistent leadership[57] Audit Committee The company's Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and overseeing the company's financial reporting process and internal control systems, having reviewed the unaudited condensed consolidated results for the quarter and deemed them compliant with applicable requirements and appropriately disclosed - The Audit Committee comprises three independent non-executive directors, with Mr. Lau Hon Kee as Chairman[59] - The Audit Committee has reviewed the unaudited condensed consolidated results for the period and confirmed their compliance with applicable accounting policies, GEM Listing Rules, and other legal requirements, with appropriate disclosures made[59] Interim Dividend and Closure of Register of Members The company declared an interim dividend of HKD 0.005 per share, payable on June 13, 2019, to shareholders registered on May 29, 2019, with the register of members closed from May 27 to May 29, 2019, to determine dividend entitlement - The interim dividend will be paid on June 13, 2019, with the record date for entitlement being May 29, 2019[60]