Hong Kong-focused electronic trading company KVB Kunlun has experienced a significant upturn in fortunes during the third quarter of its financial year ended September 30, 2014.
In the advent of the company’s imminent announcement of its full financial information and performance relating to the third quarter of the year as KVB Kunlun is duty bound to announce as a publicly listed company on the Hong Kong Stock Exchange, the firm has detailed to shareholders of the Company and potential investors that the Group is expected to record a net profit for the nine months ended 30 September 2014 as compared to a net loss for the first six months ended 30 June 2014.
KVB Kunlun cites the increase in corporate performance which has resulted in the company having made a complete turn around within such a very short period of time as being due to the increase in leveraged foreign exchange and other trading income earned from external customers during the three months period from 1 July 2014 to 30 September 2014.
The company has confirmed that it is due to release full details of its financial and trading metrics for this particular period on November 10 this year. Remarkably, the anticipated high earnings for the company will likely act as an antidote to the previous quarter’s loss, totally eradicating any negative figure from the balance sheet, and therefore setting the minds of shareholders and investors in KVB Kunlun stock at ease.
This time three months ago, things were somewhat different. The company’s board of directors issued a pre-emptive warning to its shareholders and potential investors to exercise caution in trading KVB Kunlun stock, in anticipation of a net loss at the end of the second quarter. For the period ending June 30, 2014, the company at that time reported unaudited income from leveraged FX and other trading income at HK$42.7 billion, a considerable downturn from the HK$70.29 that the company reported for the same period in 2013.
On this basis, when considering net revenues, the company lost HK$5.8 million (approximately $750,000) in the first 6 months of the year, therefore the company’s third quarter profit must have exceeded that in order to show a profit for the first nine months of the year.
Indeed, the first quarter of the year served as a sign of the times ahead, with KVB Kunlun’s revenues down 45% over those of the halcyon days of 2013. It therefore did not take long before the company resolved this situation in its entirety, and all interested parties can rest easy as the more than satisfying results of the third quarter are published.