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HONG KONG, June 7, 2010 - (ACN Newswire) - Quam Limited ("Quam" or the "Group", Stock Code: 00952.hk), a Hong Kong-based financial services group, today announced an audited annual net profit of HK$19.5 million for the year ended 31 March 2010 ("the Year"), when compared with a net loss of HK$7.9 million in the previous year. The Group's basic earnings per share were HK2.30 cents for the Year against a loss per share of HK0.98 cent in the preceding year. During the Year, the Group's revenue was approximately HK$286.6 million (2009: HK$296.9 million).
The Group's Board of Directors does not recommend the payment of a final dividend for the year ended 31 March 2010 (2009 final dividend: Nil). An interim dividend of HK1.0 cent per share was paid on 6 January 2010.
During the Year, the satisfactory results of the Group were attributed to the strategic focus on China which contributed significant revenue and to the dividend income from the Group's investment in a Thailand-based securities company.
The brokerage income from securities and futures trading accounted for approximately 72.5% of the Group's total revenue, while the corporate financial advisory services took up approximately 8.4%.
"Quam rebounded in spite of a challenging operating environment. The satisfactory performance proves that our strategy to expand into China is successful. Meanwhile, our core business in securities dealings has improved year on year in spite of lower trade volume and extremely erratic trading patterns in a tightening economic situation," said Mr Bernard Pouliot, the Chairman of Quam.
Audited Financial Highlights (for the year ended 31 March)
(HK$ million) 2010 2009
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Revenue 286.6 296.9
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Profit / (Loss) attributable to
equity holders of the company 19.5 (7.9)
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Basic earnings / (loss) per share (HK cents) HK2.30 HK(0.98)
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Total dividend per share for Year (HK cents) HK1.0 HK0.5
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During the Year, securities and futures dealing commissions were mildly adjusted to HK$207.8 million (2009: HK$214.0 million) and resulted from lower volumes in futures dealings year on year. ECM placement and underwriting fee income was HK$6.5 million (2009: HK$10.5 million), reflecting the investment manners during the challenging Year. Securities margin lending of the Group was up to HK$152.9 million (2009: HK$94.6 million) as at 31 March 2010.
Corporate finance and advisory services revenue for the Year (including inter-company services) was HK$26.6 million (2009: HK$22.4 million). Deal flow and mandates have been enhanced with the addition of new senior members. A successful IPO was sponsored in December 2009, with underwriting and distribution roles for the Group. The advisory team was expanded, which resulted in additional mandates for sponsorship advisory, public company takeovers, distressed asset and financial restructuring work.
Revenue generated from asset management increased to HK$13 million during the Year (2009: HK$12.6 million). The Quam Greater China Fund's total assets under management ("AUM") now stands at over US$56.2 million, outperforming its Greater China equity long-short benchmark during the Year and reaching its pre-crisis high-water mark recorded during the latter part of the Year. Revenue contributions from Quam Multi-Strategy Fund, the fund of funds launched in April 2009, were still modest and its AUM presently stands at US$13.5 million.
During the Year, Quam has launched a private equity fund in Suzhou. The new joint venture private equity is still in its initial operating stage and thus, its potential contribution to the Group's revenue and profit has not yet been fully reflected. In April 2010, the Suzhou Private Equity Fund made its first investment in a plastic bottles manufacturer which supplied to major drinks distributors in China.
Currently, Quam is in process of launching a Middle East Fund with advisory services provided by Invest AD. Quam Asset Management intends to expand its product range by offering a number of funds associated with their presence within the global alliance partnership. In doing so, Quam will offer diversification from the Greater China market and access to new investment opportunities overseas. Quam's next target will be an Africa fund.
Revenue generated from www.Quamnet.com and Quam IR was HK$22.1 million (2009: HK$24.0 million). During the Year, operating costs of Quamnet were lowered by transferring support services to Shenzhen office. In addition, the number of China content distribution partners was expanded, and two subscription-based advisory services were launched in the Year. Quamnet has also established co-marketing relationships with several leading local media groups to enhance subscriber recruitment.
Mr Pouliot, said, "During the Year, we continued our focus on the China market while taking aggressive advantage of every opportunity and challenge. Market presence in Chengdu, Hangzhou, Beijing and Dalian will be added into our Greater China strategy as well. This has been a year full of challenges but we are optimistic that the world economy is gradually improving."
As at 31 March 2010, Quam was in a healthy financial position with cash and short term deposits of approximately HK$73.4 million (2009: HK$119.4 million). Gearing ratio, largely the result of the margin and money lending business, was 17.6% (2009: 18.6%), being calculated as borrowings over net assets.
Quam undertook a fund raising exercise through a rights issue in January 2010, which resulted in net proceeds of HK$35.0 million. This additional capital will enable the Group to meet certain developments in its private equity initiative and the opening of new offices in China.
Appointed as the Chairman of Global Alliance Partners ("GAP"), Mr Pouliot continued, "Complementing our China efforts is our GAP's network, that spans strategic markets including Hong Kong, Vietnam, Thailand, UAE, Japan, USA (New York), UK and Africa. Quam has become the China window for GAP, which continues to grow in scope and geography."
Mr Pouliot concluded, "With an aim to improve profitability and strive for satisfactory return to shareholders, we will expand the range of our products and services and develop a seamless infrastructure to support cross-border activities, as well as broaden our customer base. Leveraging China's exciting growth potential and our unique strengths, Quam is well positioned to expand its footprint in that country."
Contact:
Quam IR
Ms Anita Wan
Tel: +852-2217-2687
E-mail: anita.wan@quamgroup.com
Ms Sharon Au
Tel: +852-2217-2680
E-mail: sharon.au@quamgroup.com
Ms Venus Lam
Tel: +852-2217-2909
E-mail: venus.lam@quamgroup.com
Topic: Earnings
Source: Quam Limited
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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