Quam Announces 2015/16 Annual Results

Jun 30, 2016 18:12 JST

Source: Quam Limited

Sustaining and Ready to Expand after a Turbulent Year

HONG KONG, Jun 30, 2016 - (ACN Newswire) - Quam Limited ("Quam" or the "Group", Stock Code: 00952.hk), a Hong Kong-based financial services group, announces its audited annual results for the year ended 31 March 2016 (the "Year").

Snapshots
- Revenue significantly increased by 26% to HK$532.5 million (2015: HK$423.7 million), as a result of the solid first half performance in the securities and asset management units coupled with robust markets and high market turnover in Hong Kong.
- Capital base increased by 42% due to a placement of news shares rising of HK$112.5 million in April 2015 combined with the conversion of share options and unlisted warrants.
- The result is affected by several non-recurring factors, among others, the costs of the tax audit by Inland Revenue Department, the costs of legal actions and the costs of closing the file with CMBC International Holdings Limited. The total amount was over HK$33.0 million.
- Seek to enlarge the spectrum of our "Securities and Futures" activities, which includes being first offshore trading members of the Singapore Stock Exchange for both equities and derivatives, the initial phase of getting access to the Intercontinental Exchange (ICE) market in United Kingdom, and launching the Quam Direct to address the requirements of the new wave of young investors that trade directly through Apps.

During the Year, revenue of Quam amounted to HK$532.5 million (2015: HK$423.7 million), representing an increase of 26% year-on-year. This was attributed by the solid first half performance in the securities and asset management units coupled with robust markets and high market turnover in Hong Kong. The Group reports an after tax profit of HK$24.7 million (2015: HK$36.0 million). Basic earnings per share were HK1.7 cents (2015: HK2.9 cents).

The Board of Directors proposed to recommend the payment of a final dividend of HK 0.5 cent per share for the year ended 31 March 2016 (2015: HK0.5 cent), and together with the interim dividend of HK1 cent per share that paid earlier, the annual dividend for the Year would be HK 1.5 cent per share.

Dr Kenneth Lam, the Chief Executive Officer of Quam, said, "The Year has certainly felt as though we were sitting in a roller coaster. Our securities and futures operations were able to capture better margins from a growing core of high net worth and institutional customers and recorded growth in spite of a reduction in business trading volume during the Year. Asset management division has doubled the revenue as a result of buoyant market and has a prosper outlook in the light of UCITS funds establishment."

Revenue of securities and futures dealing commissions increased by 43% year-on-year to HK$321.3 million for the Year (2015: HK$224.0 million), which was mainly attributed to the growth of high net worth and institutional customers. ECM business activity in placement and underwriting fee income for the Year was HK$18.3 million (2015: HK$16.9 million). Average margin loan book continued to grow by 12% to HK$835.0 million (2015: HK$743.0 million), contributing to an increase in overall interest revenue generated from margin loan.

Revenue generated from management and performance fees of asset management business increased to HK$59.3 million for the Year (2015: HK$26.7 million), as a result of buoyant market. During the Year, UCITS fund is launched. Several smaller portfolios were closed in order to concentrate on our core products focusing in China. Total assets under management ("AUM") in all funds stood at over US$ 131.0 million (2015: US$129.0 million) as at 31 March 2016.

Revenue generated from corporate finance and advisory services decreased to HK$ 54.8 million (2015: HK$66.4 million), down by 17%, which is due to both external and internal factors. The macro events and the subsequent slowdown in the market affected the timing of a number of initial public offerings and corporate activities in general. On the internal front, we suffered a loss of talents as some of our professionals decided to seek their own course or join the competition. Despite the setback, high hopes are placed on the merger and acquisition team that should be closing a number of profitable transactions in the first half of the year.

Quamnet's revenue slightly deceased to HK$16.8 million for the Year (2015: HK$18.4 million). The team has been pro-active in developing new products and working very closely with other Group divisions. The team has evolved to a media group that offers both online and offline capability.

Mr. Bernard POULIOT, the Chairman of Quam concluded, "The recent Brexit event has shaken the world capital markets and brought up questions regarding the future of United Kingdom, the survival of the European Union and its impact on world order. In addition to this fragile state, we are facing a number of elections which results could be disruptive. We expect greater volatility and thus a need for greater prudence in managing our assets and resources. But then, as the Chinese so rightly suggest, changes equals opportunity. Out of all this uncertainty, we should be able to benefit from some of the products we offer, such as our global futures platform."

About Quam Limited
Quam Limited ("Quam") is a Hong Kong-based financial services group which was listed on The Stock Exchange of Hong Kong Limited in 1997. The core businesses of the Group now comprise Quam Securities, Quam Capital, Quam Asset Management, Quam Wealth Management and Quamnet.com. By utilizing the best of both its online resources and solid expertise, Quam strives to become the ideal partner for both corporate and individual investors in Hong Kong and China. Quam also offers premier one-stop financial services to its clients. In addition, Quam provides capital markets services through its representative offices or the wholly-owned foreign enterprises in Shenzhen, Shanghai, Shenyang, Ningbo, Dalian, Beijing, Chengdu, Hangzhou and Xiamen of the PRC and through its Global Alliance Partners network in Japan, Thailand, UAE, the United States, the UK, Indonesia, Jordan and Australia.

For more information on Quam, please visit its website at www.quamlimited.com.

For further enquiries, please contact
Quam IR
Ms. Jane Chan Tel: (852) 2217 2906 Email: jane.chan@quamgroup.com
Ms. Stella Yuen Tel: (852) 2217 2908 Email: stella.yuen@quamgroup.com
Ms. Sue Leung Tel: (852) 2217 2909 Email: sue.leung@quamgroup.com

Source: Quam Limited
Sectors: Daily Finance, Daily News