KVB Kunlun warns that profits will be down 50% for first nine months 2016


LeapRate has learned that Hong Kong Forex retail forex broker KVB Kunlun Financial Group Ltd (HKG:8077) has issued a profit warning for its upcoming Q3 results announcement.

In a formal statement issued with the Hong Kong Exchange HKEX, KVB Kunlun stated that based on a preliminary review by the Board of Directors of the Company on the unaudited management accounts of the Group for the nine months ended September 30, 2016, the Board is warning that KVB is expected to record a significant decrease in net profits by approximately over 50%, as compared to the corresponding period in 2015.

Not great news, given that in Q2 KVB saw Revenues dive by 21%, and profits fall 61%.

The Board attributed the drop in profits at KVB to:

(i) a decrease in leveraged foreign exchange and other trading income as a result of decreased market volatility;

(ii) the decrease in other income which was mainly attributable to revaluation loss arising from USD depreciation against reporting currency NZD in a subsidiary of the Company, KVB Kunlun New Zealand Limited; and

(iii) an increase in fee and commission expenses.

Interestingly, after news of the profit warning hit the HKEX newswires, the company’s shares traded down on Friday but only marginally (by 1.4%) to HKD $0.70 per share. It seems as though there remains a ‘glass floor’ holding up KVB shares, at about the HKD $0.65 level.

LeapRate readers will recall that Chinese financial giant CITIC Securities Company Limited (SHA:600030) acquired a 60% interest in KVB from former controlling shareholder Li Zhi Da mid last year. At the time, CITIC made an offer to buy out the remaining minority shareholders of KVB for the same price paid to Mr. Li – HKD $0.65 per share – as was required by Hong Kong takeover law. After being soundly rejected by minority shareholders who were looking for a better price, CITIC has since sat on its hands. However speculation still abounds that CITIC would like to get its hands on the remaining 40%, and so KVB shares remain above the HKD $0.65 level, even in the face of negative news such as the current profit warning.

Related News

arrow

KVB Kunlun warns that profits will be down 50% for first nine months 2016

6

Send this to a friend

Subscribe to LeapRate
PGlmcmFtZSBzcmM9Ii93cC1jb250ZW50L2E0bHIvaGFuMTZyZXNfNjI1eDQwMC5odG1sIiB3aWR0aD0iNjI1IiBoZWlnaHQ9IjQwMCIgZnJhbWVib3JkZXI9IjAiIHN0eWxlPSJib3JkZXI6bm9uZTsiIHNlYW1sZXNzPjwvaWZyYW1lPg==
PGlmcmFtZSB3aWR0aD0iNjQwIiBoZWlnaHQ9IjM5NSIgc3JjPSJodHRwczovL3d3dy55b3V0dWJlLmNvbS9lbWJlZC80Mzc5MThJbFc5ST9yZWw9MCZjb250cm9scz0wJnNob3dpbmZvPTAiIGZyYW1lYm9yZGVyPSIwIiBhbGxvdz0iYXV0b3BsYXk7IGVuY3J5cHRlZC1tZWRpYSIgYWxsb3dmdWxsc2NyZWVuPjwvaWZyYW1lPg==
Fill out the form below for more information
for lising in LeapRate's Forex Yellow Pages

Please enter the company name, email address to reach you and phone # (optional):

Please fill out the message field to the right for any questions or special inquiry:
PGlmcmFtZSBzcmM9Imh0dHBzOi8vd3d3LmxlYXByYXRlLmNvbS9hNGxyMTcvNjAweDQyNS82MDB4NDI1TFIuaHRtbCIgZnJhbWVib3JkZXI9IjAiIHdpZHRoPSI2MDAiIGhlaWdodD00MjUiPjwvaWZyYW1lPg==
PGlmcmFtZSBzcmM9Imh0dHBzOi8vd3d3LmxlYXByYXRlLmNvbS8vYTRscjE3L3VmeDE4LzYwMHg0MjVfMXN0LVRpbWVMZWFwUmF0ZS1lbi1HQl9IVE1MNS5odG1sIiBmcmFtZWJvcmRlcj0iMCIgd2lkdGg9IjYwMCIgaGVpZ2h0PTQyNSI+PC9pZnJhbWU+
PGlmcmFtZSBzcmM9Ii8vY2RuLmJhbm5lcnNuYWNrLmNvbS9iYW5uZXJzL2JjaWVod29iOC9lbWJlZC9pbmRleC5odG1sP3VzZXJJZD0zMTU5MzQwNiZ0PTE1MTAxMzg3MTAiIHdpZHRoPSIxMDAlIiBoZWlnaHQ9IjEwMCUiIHNjcm9sbGluZz0ibm8iIGZyYW1lYm9yZGVyPSIwIiBhbGxvd3RyYW5zcGFyZW5jeT0idHJ1ZSIgYWxsb3dmdWxsc2NyZWVuPSJ0cnVlIj48L2lmcmFtZT4=