During the Reporting Year, the Group delivered strong performance in its financial service business. Boosted by its promising business performance, revenue from continuing operations increased by approximately 32% to approximately HK$90.6 million during the Reporting Year (2020: HK$68.4 million). The Group successfully achieved a business turnaround with profit for the year attributable to the owners of the Company of approximately HK$15.2 million, against a loss of approximately HK$31.7 million in 2020. Basic earnings per share from continuing and discontinued operations were HK0.81 cents (2020: Basic loss per share of HK2.36 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 . During the Reporting Year, we seized opportunities amidst the challenges brought about by the complex and volatile market environment, while achieving breakthroughs in several business segments and enhancing operational efficiency. Our improved results were mainly attributable to the increase in commission from placing and underwriting transactions by VC Brokerage Limited, the increase in interest income money lending due to increase in loan book, increase in net realised and unrealised gain on investment in trading securities and substantial reduction of impairment in accounts receivables and other receivables. The successful turnaround was also a testimony of the dedication and hard work of our staff."
Business Overview
Financial service business
The financial service business remained the Group's core business during the Reporting Year and contributed approximately 99.7% of the Group's total revenue. The business segment recorded a proimising performance, with a 32% year-on-year growth in revenue, driven by the Group's client base established over the years, diverse premium services that cater to clients' needs, competitive fees and a proactive and professional team. The Group continued to provide local and overseas securities dealing, futures trading, derivatives and other structured products trading, placement and underwriting, margin financing and money lending, etc. Besides, the Group offered corporate finance advisory services, including mergers and acquisitions advisory and company secretarial services. The Group also focused on achieving sound development in the financial market and aggressively pursued innovations, among which financial technology is considered a fundamental part of innovations and remains a major focus of investment in the industry. Since the rise of digital era, the Group has introduced its online securities transaction platform, which has been well recognized by the industry.
Proprietary trading business
Hong Kong's securities market remained vibrant in 2021, with total funds raised and average daily turnover reaching HK$770.7 billion and HK$166.7 billion, representing year-on-year increases of 3.0% and 29.0% respectively. Benefitting from this, the performance of proprietary trading business segment remained strong. As of 31 December 2021, the Group held equity securities listed in Hong Kong of approximately HK$423.5 million as financial assets held-for-trading, marking a 71% appreciation of market value as compared with that of 31 December 2020.
Sale and marketing of digital assets
The Group commenced the sales and marketing of digital assets business in December 2021, with a view to capturing the potential growth in the digital era. The joint venture Shenzhen Huiwei Duoying Technology Co. Ltd. was established in December 2021, marking the Group's first step to expand its business to digital assets segment. Subsequent to the establishment of the joint venture Shenzhen Huiwei Duoying Technology Co. Ltd., a sales and marketing team has been established in Shenzhen to facilitate the boost of the sale and marketing of digital assets segment. The Group plans to enhance the business of sales and marketing of digital products of Tencent, with an expectation to obtain exclusive sales rights from digital product distributors of Tencent.
The Group discontinued its healthcare business as a result of the disposal during the Reporting Year.
Outlook
Capitalizing on the strategic partnership and in-depth business collaboration between the Group and its partners, VC Group will continue to adopt its dual-track business strategy to bolster a stable development of its financial operations in Hong Kong and allocate more resources to further expand digital assets business in China, with a view to enhancing flexibility of business, broadening revenue streams and bringing new impetus for sustainable growth of the Group. The Group will also remain vigilant to the potential impact brought about by COVID-19-related uncertainties and continued inflation.
Mr. Fu concluded, "We are optimistic about the prospects of new business, which is expected to start contributing to the Group's revenue in this financial year and make up the shortfall in Hong Kong business resulting from market uncertainties and volatility. Looking ahead, leveraging our deep customer knowledge and comprehensive portfolio of financial products and services, the Group will fully unleash its strengths as a professional financial service provider and continue to move forward towards its strategic goal of building a professional, market-oriented and international investment platform, so as to bring long-term returns for shareholders."
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 marketing of digital assets.
For more details, please visit www.vcgroup.com.hk.
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