KVB Kunlun Financial Group Ltd (HKG:8077), a Hong Kong-focused forex broker, has reported its unaudited consolidated results for the full financial year ending December 31, 2017. The latest statement shows a strong performance in the group’s leveraged foreign exchange (FX) trading, though its overall bottom line figures were sharply lower relative to a year ago.
The Cayman Islands-registered company completed last year with an overall profit of HK$27.4 million ($3.5 million), dropping 29.3 percent year-on-year from HK$38.7 million ($4.99 million) in 2016. Furthermore, KVB Kunlun reported diluted earnings per share (EPS) of HK$1.35 in 2017, a substantial loss of nearly 30 percent year-on-year from HK$1.90 a year ago.
In a different vein, the company saw its leveraged FX and other trading income coming in at HK$397.03 million ($50.6 million) during 2017, corresponding to an increase of 29 percent year-on-year from HK$306.03 million ($39.4 million) in 2016.
In addition, fee and commission income increased last year to HK$108.8 ($7.12 million), up 96 percent from HK$55.35 ($7.12 million) in 2016. This is mainly due to the higher trading volume and market volatility during the 2017 financial year.
Moreover, the group saw just HK$1.1 million ($144,000) in cash dealing income during 2017, diving 73.0 percent year-on-year from HK$4.2 million ($547,000) a year earlier.
Total income for 2017 amounted to HK$515 million ($65.6 million) – this represents an advance of 42 percent year-on-year from HK$362.6 million ($46.7 million) in the year prior.
Consolidated operating expenses were HK$478 million for 2017, a jump of 55 percent year-on-year from HK$307.2 million in 2016.
KVB Kunlun Financial Group Limited is a financial investment services company providing various financial products and services in New Zealand, Australia, and Hong Kong. The company provides leveraged FX and other trading services, cash dealing business, and securities trading referral services. KVB Kunlun Financial Group Limited was founded in 2001 and is headquartered in Kowloon, Hong Kong.
As of December 31 2017, 59 percent of the issued shares of the company are held by CITIC Securities Overseas, 15 percent of issued shares are held by KVB Kunlun Holdings Limited and the remaining 26 percent are listed on Hong Kong’s main bourse.