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Quam Announces 2012/13 Annual Results
Core Businesses Securities and Asset Management Remained Stable
Amid Bear Markets
HONG KONG, Jun 19, 2013 - (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 2013 (the "Year").
During the Year, revenue of Quam amounted to HK$330.4 million (2012: HK$358.3 million), representing a decrease of 7.8% compared to the corresponding period last year. The Group recorded a loss of HK$18.9 million (2012: loss of HK$24.5 million), which was mainly due to the impairment provision regarding a private equity investment in a PET water bottle manufacturer in the PRC held through our stake in a jointly controlled entity, and the double rent and reinstatement for the transition to the new offices incurred in the first half of the Year. Basic loss per share were HK1.61 cent (2012: loss per share of HK2.34 cent).
The Group's Board of Directors did not recommend the payment of a final dividend for the year ended 31 March 2013 (2012 annual dividend: Nil).
Mr Kenneth LAM, the Chief Executive Officer of Quam, said, "In the face of bear markets caused by the global financial crisis and European debt crisis, our core businesses securities and asset management performed relatively well during the Year. Our market share in equities business maintained, with steady futures trading business and healthy securities margin loan book. Asset management division recorded impressive performance compared with benchmarks; we expect this momentum to continue in the coming year with both Asset Under Management ("AUM") and performance fee growth. In addition, corporate finance business was able to maintain its momentum with strong deal flow despite the difficult economic climate. During the Year, we have focused on restructuring our asset management and Quamnet businesses, resulting in cost reduction in both operations."
Revenue of securities and futures business decreased 8.9% to HK$198.6 million (2012: HK$218.0 million) which was mainly attributed to poor market sentiment affecting volume and commission levels. ECM business activity in placement and underwriting fee income for the Year adjusted to HK$9.8 million (2012: HK$12.7 million). Margin loan book at the end of Year
* for identification purpose only
stood at HK$533.1 million (2012: HK$469.3 million) that was supported by sufficient banking facilities. The equity options had positive contribution to the overall securities dealing business while futures dealing commission and activity has a relatively stable base during the Year.
Corporate finance and advisory services was able to maintain its momentum with revenue for the Year amounted to HK$50.4 million (2012: HK$54.3 million). Deal flow continued to be strong and further controls in compliance and work process to ensure an appropriate compliance level were added in order to catch up with new regulatory changes relating to IPO sponsors.
Revenue generated from management fees of Asset Management increased to HK$9.5 million (2012: HK$9.0 million), thanks to better performance on the largest fund Quam China Focus Fund. Total AUM in all its funds stood overUS$61.0 million (2012: US$62.9 million) at the Year end. After a drop in AUM at the beginning of the Year, we witnessed a gradual increase towards the Year end given the performance and renewed confidence in this equity market.
Quamnet's revenue decreased 18.2% to HK$22.0 million (2012: HK$26.9 million), which was due to the significant drop in the advertising and content fee revenue and the slowdown in revenue from website management and related services resulting from unfavorable market. During the Year, new trading tool service Quam Alpha has been soft launched and well received by the market.
Quam has received 85% of the receivables under its claim for client monies from the liquidation of MF Global HK.
In respect to investment of the Group, McMillen Advantage Capital Limited in Dubai has recently advised that they have wound up its investment banking operations and will now focus on liquidating assets for eventual return to all shareholders. The Group also has disposed its entire stake in Seamico Securities Public Company Limited in March and April 2013.
Mr Bernard POULIOT, the Chairman of Quam concluded, "The economic climate seems to be showing some positive signs of recovery and stability after over 3 years of uncertainty. We believe the government policy to curtail real estate investment will drive investors to the financial market which the Group is poised to take advantages ahead of an upswing financial market. We will continue to further enhance our product and service offerings in all units, including trading tools for our securities and futures clients, add new products and subscription content through Quamnet, and seek divestment of some of our investments. We aim to sharpen our competitive edge with stronger market responsiveness, better cost control and higher operational efficiency."
Contact:Quam IR
Ms Anita Wan
Tel: (852) 2217-2811
E-mail: anita.wan@quamgroup.com
Ms Sharon Au
Tel: (852) 2217-2812
E-mail: sharon.au@quamgroup.com
Source: Quam Limited
Sectors: Daily Finance, Daily News
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