Net profit & turnover surged 226.7% & 69.1% respectively
Fully Demonstrates the Efficacy of Branch Network expansion
HONG KONG, Nov. 23, 2011 /PRNewswire-Asia/ --
Financial & Operational Highlights
| For the 6 months ended 30 Sept | |||
| HK$' Million | 2011 | 2010 | Change |
| Turnover | 122.7 | 72.6 | +69.1% |
| Net profit | 33.0 | 10.1 | +226.7% |
| Basic earnings per share (HK cents) | 4.85 HK Cents | 1.88 HK Cents | +158.0% |
| New client accounts opened | 11,143 accounts | 5,515 accounts | +102.1% |
| As at 30 Sept 2011 | As at 31 Mar 2011 | Change | |
| Total number of client accounts | 43,524 | 32,381 | +34.4% |
Bright Smart Securities & Commodities Group Limited ("BS Group" or "the Group", HKEx: 01428) is pleased to announce its unaudited interim results for the six months ended 30 September 2011.
In the period under review (April to September 2011), BS Group reported inspiring results with strong growth in both turnover and profits. During the period, turnover surged 69.1% to HK$122.7 million (same period 2010: HK$72.6 million); whereas the net profits rose a significant 226.7% to HK$33.0 million (same period 2010: HK$10.1 million) from the same period 2010. The Group's outstanding performance during the period was mainly attributable to the efficacy of the branch network expansion which has resulted in a rapid increase in the customer base and in turn a remarkable increase in the brokerage commission income. The expanded branch network has brought the full play of economics of scale, powering the increase in profits. Basic earnings per share were HK$4.85 cents (same period 2010: HK$1.88 cents). The Board of Directors does not recommend the payment of an interim dividend for the period (same period 2010: nil).
Mr. Yip Mow Lum, Chairman of BS Group, said, "Despite the stock market slump in the review period, the Group continued to adopt aggressive marketing strategies, including providing commission-free offers to new accounts in order to secure the Group's market share. As the first of its kind in the industry, the Group implemented seven days operations at selected branches since July 2011, to enhance our customer service level. Benefiting from the successful launches of different promotion campaigns, and with the operation of the smooth new branches established in 2010, the number of new client accounts opened during the six months had exceeded 10,000, which drove inspiring growth in both net profits and turnover."
The operation of the 10 new branches established in 2010 gathered momentum during the period and stimulated remarkable increase in the number of clients. Consequently, the Group generated a turnover of HK$122.7 million in the period, significantly up by 69.1% from the same period 2010. Of which, the turnover from the branches grew astonishing over 6-fold to HK$52.0 million (same period 2010: HK$7.1 million), contributed 42.4% of the total turnover (same period 2010: 9.8%). The turnover from the head office recorded a steady increase to HK$70.7 million, representing an increase of 7.9% from the same period 2010.
The major revenue sources of the Group comprise commission income from securities brokerage, Hong Kong futures and options brokerage, and interest income from margin financing. Of which, commission income from securities brokerage was HK$57.7 million, representing an increase of 46.1% as compared to the same period 2010, and accounted for 46.9% of the total turnover. It is worth noting that the growth (46.1%) for the Group's securities brokerage segment was much higher than the growth of 13.5% in market turnover recorded by the Stock Exchange, significantly outperformed the market. Hong Kong futures and options brokerage segment delivered an impressive commission income of HK$23.8 million, representing an increase of 80.6%, accounted for 19.4% of total turnover. Interest income from margin financing was HK$28.6 million, representing a significant increase of 131.8%, and which accounted for 23.3% of the total turnover. Besides the above mentioned three major segments, commission income from global futures brokerage increased by a significant 132.3% to HK$7.8 million, as the Group has strived to enrich its portfolio of global investment products.
The Mong Kok Second Branch commenced operation in May 2011. Therefore, the total number of branches has increased to 12, covering the population-dense areas in Hong Kong. The Group implemented seven-day operation at 8 selected branches in July 2011, making it more convenient for customers to open accounts, participate in seminars and have access to account services seven days a week even on Sunday. Thanks to the Group's expanded branch network, and the attraction of new customers by different promotion campaigns, the total number of net new client accounts opened reached 11,143 (same period 2010: 5,515). Among the new clients accounts opened, 10,388 were attributable to the branches, accounting for 93.2% of total number of new client accounts opened (same period 2010: 83.9%). As at 30 September 2011, the Group's total number of client accounts amounted to 43,524, representing an inspiring growth of 34.4% from 32,381 accounts as at 31 March 2011.
Looking ahead, the Group will continue to launch new products in response to market conditions to meet the diverse needs of its customers. To extend the success of the low-commission strategy in the past, the Group launched new fee schedules for the trading of callable bull/bear contracts ("CBBCs") and warrants at a flat rate of HK$4.88 for each transaction in October 2011. Moreover, the Group launched "Day Trade" (壹開拾) securities services which provides 90% interest-free margin financing for day-trade investors. The Group will also enrich its portfolio of global investment products. In 2011, the Group introduced brokerage services for mainland China B shares, Taiwan securities and Singapore securities.
In the pursuit of further enhancing its branch network, the Group plans to open a new branch in Quarry Bay, scheduled to be completed early 2012. As for the mainland China, the Group is negotiating possible co-operation with mainland China financial websites, with an aim of increasing the Group's presence through the live broadcast of the "Bright Smart Finance Channel" (耀才財經台) on those websites. The Group is also preparing for the launch of assets management business.
Mr. Yip Mow Lum, Chairman of BS Group, concluded, "The recent launch of the new "HK$4.88" fee is in line with our on-going low-commission strategy. The new fee has broken the lowest commission level for trading CBBCs and warrants among securities companies in Hong Kong. Since their launch, the new "HK$4.88" fee and the "Day Trade" (壹開拾) margin accounts have received overwhelming market response, which drives satisfactory growth in new client accounts. We are confident that our leading position as the 'King of Low Commission' and the implementation of different creative promotion campaigns, will help us to grow our market share in Hong Kong rapidly, and thereby prepares us to expand into Mainland, lifting the Group to new heights."
About BS Group
Listed on the Main Board of the Hong Kong Stock Exchange in 2010, Bright Smart Securities & Commodities Group Limited ("BS Group", HKEx: 01428) provides its clients with comprehensive and robust brokerage services including securities traded in Hong Kong, US, China (B) and Taiwan, Hong Kong stock options, global futures, IPO subscriptions and margin financing through its wholly-owned subsidiaries Bright Smart Securities International (H.K.) Limited and Bright Smart Futures & Commodities Company Limited. Leveraging on its reliable online trading platform and low commission policy, BS Group has achieved rapid growth and has a total of 12 branches distributed across Hong Kong, Kowloon and the New Territories. For more information, please visit www.bsgroup.com.hk
