During the Reporting Period, the Group successfully achieved a business turnaround, with its total revenue significantly increasing by 35.6% to approximately HK$37.8 million as at 30 June 2021 (1H2020: HK$27.9 million). The Group recorded a profit attributable to owners of the Company of approximately HK$ 101.1 million for the Reporting Period as compared to that of a loss of approximately HK$54.8 million for the same period last year. Basic earnings per share were HK5.93 cents (1H2020: Basic loss per share of HK4.45 cents).
Mr. Peter Fu, Chairman and Executive Director of Value Convergence Holdings Limited, said, "VC Holdings has always been dedicated to offering premier financial services and products that fulfil various investment and wealth management needs of clients in the Great China region. Benefiting from the outperforming financial market in the first half of 2021, the Group achieved breakthroughs in several business segments and recorded a remarkable increment in revenue. During the Reporting Period, the Group achieved a turnaround, mainly attributable to the increase in revenue of approximately HK$10.5 million, mainly from interest income generated from margin financing and money lending businesses. Meanwhile, a net realised and unrealised gain in financial assets at fair value through profit or loss of approximately HK$79.4 million (1H 2020: net realised and unrealised loss of approximately HK$22.2 million) and reversal of impairment loss on accounts receivables of approximately HK$27.7 million (1H 2020: additional impairment loss of approximately HK$12.1 million) were recorded in the Reporting Period, both attributable to the remarkable appreciation of market values in securities held-for-trading by the Group and from clients as collateral."
Business Overview
Financial service business
The financial service business remained the Group's core business and contributed approximately 88% of the Group's total revenue. The business segment recorded a 46% year-on-year growth in revenue, driven by the Group's effort in providing multiple premium financing businesses to address clients' needs and broadening the revenue base to enhance its profitability. The Group continued to provide local and overseas securities dealing, futures and options trading, derivatives and other structured products trading, placement and underwriting, margin financing and money lending, etc. Regconising the importance of financial technology, the Group strived to optimise its online securities transaction services, meanwhile actively enhancing user experience through refining its operating system. Leveraging VC Capital Limited, its indirect wholly owned subsidiary, the Group continues to offer corporate finance advisory services, including mergers and acquisitions advisory and company secretarial services.
Proprietary trading business
Thanks to the fully-fledged revival of economic activities, there was a notable rebound of Hong Kong's capital market during the Reporting Period. As at 30 June 2021, the Group held equity securities listed in Hong Kong of approximately HK$358.4 million as financial assets held-for-trading, marking a 45% appreciation of market value as compared with that of 31 December 2020, mainly attributable to the gains from technology information and energy segments.
Outlook
Despite the global economy poised a stage to rebound in the first half of the year, the Delta variants still pose uncertainties to the financial market. In face of the market headwinds, the Group will continue to strengthen its financial business and optimise the operational efficiency to maintain its market position. In view of digital era, the Group is dedicated to embrace more disruptive technologies in hopes of offering users with better user experience and secured trading platform.
Mr. Fu concluded, "We strive to enhance our financial services through adopting advanced technologies including but not limited to artificial intelligence, computing cloud and big data. Looking ahead, the Group will further strengthen its financial services in forms of addressing user experience and reinforcing security system together with expanding its businesses through integrating SaaS and FinTech, with the aim of improving its profitability, achieving operational efficiency alongside maintaining steady businesses development."
About VC Holdings Limited
Value Convergence Holdings Limited (Stock code: 0821.HK) was listed on the GEM board of Hong Kong Stock Exchange in 2001, and completed transfer of listing to the Main Board in 2008. Being a well-established financial services group committed to delivering premier financial services and products in the Great China region, the Group's services include (i) provision of financial services comprising securities, futures and options brokering and dealing, financing services, corporate finance and other advisory services, asset management and insurance brokerage; (ii) proprietary trading; and (iii) sale and distribution of healthcare products. Aiming to enhance user experience through integrating SaaS and FinTech in the securities industry, the Group intended to acquire SaaS-related business in 2021, further consolidating its own business and expanding its clientele.
For more details, please visit www.vcgroup.com.hk.
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