Emperor Capital Group Limited Announces 2016/17 Annual Results

Proves Track Record of Consistent Growth in 10th Listing Anniversary

HONG KONG — Emperor Capital Group Limited (the “Group”) (Stock code: 717), a one-stop comprehensive financial services institution in Hong Kong, today announced its annual results for year ended 30 September 2017 (the “Year”).

During the Year, the Group’s revenue registered growth of 25.8% to HK$1,241.0 million (2016: HK$986.2 million), driven by growth across all segments. Net profit grew by 25.4% to HK$659.2 million (2016: HK$525.6 million) with a net profit margin of 53.1% (2016: 53.3%). Basic earnings per share were HK9.96 cents (2016: HK8.95 cents). The Group recommended the payment of a final dividend of HK1.52 cents per share (2016: HK1.28 cents). Together with the interim dividend of HK1.38 cents per share, the total dividends per share for the Year will amount to HK2.90 cents (2016: HK2.48 cents).

The Group maintained a strong financial position with sufficient liquid capital. As at 30 September 2017, aggregate of bank balances, cash and pledged bank deposits of the Group amounted to HK$674.1 million (as at 30 September 2016: HK$590.3 million). The total borrowings including bonds decreased to HK$1,917.6 million (as at 30 September 2016: HK$2,120.2 million), resulting in a decrease of gearing ratio to 37.4% (as at 30 September 2016: 50.0%).

Financing
Revenue from the financing segment grew by 8.3% to HK$837.5 million (2016: HK$773.4 million), accounting for 67.5% (2016: 78.4%) of the Group’s total revenue.

Thanks to the successful marketing campaigns, the Group has further penetrated the property mortgage market, with a considerable increase in the number of new mortgage contracts. Meanwhile, the Group has expanded its team, which comprises specialists with technical expertise and extensive experience in the provision of personal loan services.

Brokerage
Hong Kong stock market activity remained buoyant amid positive market sentiment during the Year. Revenue from brokerage services recorded growth of 21.8%, to HK$133.0 million (2016: HK$109.2 million). The segment accounted for 10.7% (2016: 11.1%) of total revenue.

As at 30 September 2017, the Group operated 10 branches in Hong Kong and three liaison offices in mainland China. Since after the launch of the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect schemes in recent years, the Group has included Northbound trading services, enabling investors to trade eligible stocks listed in Shanghai Stock Exchange and Shenzhen Stock Exchange. The introduction of Northbound trading services has facilitated investors’ accessibility to China market, thereby enriching their investment opportunities.

Placing and Underwriting
During the Year, the Group secured a number of primary and secondary market financing projects. Revenue from the placing and underwriting segment more than doubled to HK$203.7 million (2016: HK$88.2 million), accounting for 16.4% (2016: 8.9%) of total revenue.

The Group acted as Bookrunner and Lead Manager in the share placing for the listing of Bar Pacific Group Holdings Limited, which was listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited in January 2017.

Corporate Finance
Riding on its strong ties with small to medium-sized enterprises, the Group has engaged in a number of corporate transactions and IPO projects during the Year. Revenue from the corporate finance segment increased more than three-fold to HK$66.8 million (2016: HK$15.4 million), accounting for 5.4% (2016: 1.6%) of total revenue.

Ms. Daisy Yeung, Chief Executive Officer of Emperor Capital Group Limited, said, “This year is the 10th anniversary of our listing in Hong Kong. I am pleased that the Group has again demonstrated its remarkable progress with another year of robust revenue and profit growth, translating to a 4-year compound growth rate of 32% and 44% respectively. The outstanding performance recognised the success of our diversification strategy, which has consistently grown the business volume and helped to deliver solid returns. Looking ahead, I am confident that our integrated business model will enable us to capitalise on the strong market conditions and move to the next stage of development.”

Ms. Yeung continued, “The positive changes in the accessibility of the China’s capital market, including the expansion of mutual market access schemes, has affirmed China’s commitment to liberalising its financial market for global investors. Hong Kong’s unique position as a gateway connecting China and international markets will hence be further reinforced. As one of the integrated financial service providers in Hong Kong, we are optimistic regarding our long-term business prospects.”