Hong Kong retail forex broker KVB Kunlun Financial Group Ltd (HKG:8077) has issued a statement indicating that its net earnings for Q3 will be significantly higher that Q2, and also as compared to the corresponding Q3 period last year.
In response, KVB shares popped today in HKEX trading, up 16% to HK$ 0.74.
KVB shares had been in the doldrums for more than a year, following a series of negative earnings announcements. However the company doubled its Revenue in Q2, and then KVB saw its shares double when the company announced a proposed move of its share listing to the HKEX Main Board in late August.
The full statement issued by KVB Kunlun reads as follows:
KVB KUNLUN FINANCIAL GROUP LIMITED
昆侖國際金融集團有限公司
(Incorporated in the Cayman Islands with limited liability)
(Stock code: 8077)
POSITIVE PROFIT ALERT
This announcement is made by KVB Kunlun Financial Group Limited (the “Company”, together with its subsidiaries, the “Group”) pursuant to Rule 17.10 of the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited (the “GEM Listing Rules”) and the Inside Information Provisions (as defined in the GEM Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).
Based on the preliminary review by the board of directors (the “Board”) of the Company on the unaudited management accounts of the Group for the nine months ended 30 September 2017 (the “Relevant Period”), the Board wishes to inform the shareholders of the Company and potential investors that the Group is expected to record a significant increase in the net profit for the three months ended 30 September 2017 as compared to the net profit recorded for the six months ended 30 June 2017, which also represented a significant increase in the net profit as compared to the three months ended 30 September 2016. Such increase in the net profit recorded was mainly attributable to the increase in leveraged foreign exchange and other trading income primarily resulted from higher market volatility and higher trading volume in the third quarter of 2017. Nevertheless, due to the comparatively lower net profit recorded for the six months ended 30 June 2017, the Group is expected that the net profit for the Relevant Period would be slightly lower than the net profit recorded in the corresponding period in 2016.
This announcement is a preliminary assessment made by the management of the Company based on the internal unaudited management accounts of the Group for the Relevant Period, which have not been audited or reviewed by the Company’s independent auditor, nor have been confirmed by the audit committee of the Company. The Company is in the process of finalising the results for the Relevant Period for review by the audit committee of the Company.
The third quarterly results announcement for the Relevant Period is to be published no later than 14 November 2017.
Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.
By order of the Board
KVB Kunlun Financial Group Limited
Liu Stefan
Executive Director
Hong Kong, 17 October 2017
As at the date of this announcement, the directors of the Company are as follows:
Executive Directors
Mr. Liu Stefan
Mr. Ng Chee Hung Frederick
Non-executive Directors
Mr. Li Zhi Da
Mr. Stephen Gregory McCoy
Independent Non-executive Directors
Ms. Zhao Guixin
Mr. Cornelis Jacobus Keyser
Mr. Lin Wenhui