Hong Kong broker Guotai Junan saw a drop in leveraged foreign exchange earnings in 2018

Leveraged foreign exchange contributed HK $ 2.36 million to revenue in Guotai Junan’s brokerage segment in 2018, up from HK $ 2.74 million the previous year.

Hong Kong-based online trading company Guotai Junan International Hold. Limited (HKG: 1788) today released its financial results for the year ended December 31, 2018, with results lagging behind those of 2017.

In 2018, the group’s brokerage business had sales of approximately HK $ 450 million, up from approximately HK $ 520 million the previous year. Excluding the effect of income from listing of Guotai Junan’s parent company in 2017, brokerage income increased 8% year over year. Leveraged foreign exchange contributed HK $ 2.36 million to revenue in Guotai Junan’s brokerage segment in 2018, up from HK $ 2.74 million the previous year.

Although the Hong Kong stock market fluctuated significantly during the year as the Hang Seng Index fell 14% year over year, the group’s competitive financial products and advanced services and platforms such as Jun Hong Wealth Management Club and the updated The Mobile Trading Platform did “Tradego” attracted many high-profile customers. During the year, the company’s number of professional investors (customers with more than $ 1 million in fixed assets) grew steadily approximately 40% year over year.

The stock market fluctuations led to an increase in the trading volume of futures and options. In the year under review, income from brokerage commission for futures and options increased by 14% to approximately HK $ 28.5 million.

For the year ended December 31, 2018, the group had total sales of approximately HK $ 3.01 billion, a decrease of approximately 4% from the previous year. Despite the volatility of the market, revenues from the Group’s financial products and debt markets continued to grow rapidly, peaking at an all-time high of 111% year-over-year to HK $ 640 million and 38% year-over-year to HK $ 480 million, respectively.

Total income attributable to the company’s shareholders was approximately HK $ 800 million in 2018, compared to HK $ 1,230 million in 2017, a decrease of approximately 35%. Excluding the impact of income (on brokerage and corporate finance operations) from the listing of Guotai Junan Securities Co., Ltd. (Share code: 2611.HK/601211.SS) In 2017, profit attributable to shareholders decreased by 20%. Year for year.

The board of directors recommends paying a final dividend of HK $ 0.020 per share for the year ended December 31, 2018, subject to shareholder approval at the company’s annual general meeting.

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