KINGKEY FIN INT(01468) Earnings Summary
Bullish Points:
1. Insurance brokerage business expanded sales team by 4.9% with 151 licensed representatives and 74 licensed representatives for Mandatory Provident Fund Schemes Authority.
2. Insurance brokerage revenue for the fiscal year 2023 was approximately HKD 47,200,000, with a segment profit of approximately HKD 1,200,000.
3. Fur business revenue increased to approximately HKD 11,200,000 in the fiscal year 2023 due to the resumption of normal Kopenhagen Fur auctions.
4. Other income increased by approximately HKD 2,200,000 to HKD 36,300,000 in the fiscal year 2023, mainly due to referral income of HKD 11,000,000 and compensation of HKD 6,800,000 from the Danish government for the loss of mink culling.
5. The company completed the acquisition of 70% of FGA Holdings Limited and its subsidiaries for a total consideration of USD 35,000,000 (approximately HKD 271,600,000) on June 6, 2022.
Bearish Points:
1. Challenging business environment due to the pandemic, economic downturn, and geopolitical tensions.
2. Securities business revenue decreased to HKD 29,700,000 (2023) from HKD 33,900,000 (2022).
3. Company recorded a loss of HKD 103,000,000 (2023) in the securities business division, compared to a profit of HKD 10,100,000 (2022).
4. Provision of HKD 29,300,000 for expected credit losses, representing 10.8% of the outstanding securities margin financing.
5. Full impairment of goodwill amounting to HKD 106,800,000 in the securities business.
6. The Group recorded an annual loss of approximately HKD 1,163,000,000 for FY 2023 (FY 2022: HKD 73,100,000).
In summary, the company has experienced some growth in its insurance brokerage business and fur business, as well as successful acquisitions. However, it has faced challenges in the securities business, resulting in losses and impairment of goodwill. The overall business environment remains uncertain due to the pandemic, economic downturn, and geopolitical tensions. For more information, you can read the original text of KINGKEY FIN INT(01468)'s financial report: https://static.tigerbbs.com/ae31780b00bd469aaf0306c1e7ad0404
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