LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
Cayman Islands registered, Hong Kong-focused FX firm KVB Kunlun has today announced its interim results for the first six months of 2014.
For the period ending June 30, 2014, the company has 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.
Despite the sustained loss which has continued into the second quarter, performance during the second quarter of the year was much improved over the first three months of the year, despite both quarters being below last year’s levels. In the second quarter of this year, revenues were up a litle, turning a HK$1.2 million profit versus a HK$7 million loss in the first quarter.
Indeed, the continuing period of low volumes has not been restricted to just Western markets, as exemplified by various Japanese brokerages having experienced similar downturns, and KVB Kunlun’s first six months of the year has proven to be no exception.
Total income for the first half of 2014 amounted to HK$57.03 billion, almost half that of the same period last year, in which the company generated HK$95,601 in total income. The company experienced a 45% downturn in revenues during the first three months of the year, a less than satisfactory dynamic that has continued across the second quarter.
Earlier this week, LeapRate reported that KVB Kunlun had issued a cautionary notice to its shareholders, advising to exercise caution when considering transacting company stock as the company’s board of directors considered it very likely that the company would announce a loss in this particular interim result declaration, which indeed it has, with a pre-tax negative income of HK$7.076 million for the six month period.
This loss is a far cry from the same period last year, in which the company made a pre-tax profit of HK$31,6 million.
With many firms having now announced their trading volumes for July, the omnipresent possibility that low trading activity may still be plaguing the industry as a whole still lingers.
In order to view the entire report, click here and enter stock code 8077.