| For the year ended 31 December |
2010
(HK$'000) | 2009
(HK$'000) | YoY Changes |
| Revenue | 572,481 | 455,587 | 25.7% |
| Net profit | 64,443 | 38,114 | 69.1% |
| Net profit margin | 11.3% | 8.4% | 2.9 |
| Basic earnings per share | 18.6 cents | 12.7 cents | 46.5% |
Divided per ordinary share:
- Proposed final | 2.0 cents | - | - |
(Hong Kong, 28 March 2011) - Convoy Financial Services Holdings Limited (the "Company", and together with this subsidiaries, the "Group"; stock code: 1019), the largest independent financial adviser ("IFA") firm in Hong Kong, today announced its first audited consolidated results of the Group for the year ended 31 December 2010 after the listing of its shares on the Main Board of The Stock Exchange of Hong Kong Limited ("HKSE") (the "Listing").
Benefiting from the improvement in the global economy and investment market performance, the Group's revenue reached approximately HK$572.5 million during the year ended 31 December 2010, representing an increase of approximately 25.7% when compared with same period in 2009. Profit for the year attributable to owners of the Company surged 69.1% to HK$64 million, net profit margin improved approximately 3 percentage points to 11.3%. Basic earnings per share were HK 18.6 cents. The Board declared an annual dividend of HK 2.0 cents per share for the 12 months ended 31 December 2010.
During the year, the Group continued to maintain a healthy financial position, cash and cash equivalents were approximately HK$226.8million (31 December 2009: HK$83.8 million). Current ratio improved from approximately 1.0 as at 31 December 2009 to approximately 2.0 as at 31 December 2010. The Group had not incurred any borrowings as at 31 December 2010.
The management of Convoy Financial Services Holding Limited, Chairman of Convoy Financial Group Mr Quincy Wong Lee Man (middle), Chief Executive Officer of Convoy Financial Services Holdings Limited Ms Rosetta Fong Suet Sum (right) and Chief Financial Officer of Convoy Financial Services Holdings Limited Mr Mark Mak Kwong Yiu, announced Convoy Financial 's first Final Post-listing Results today.
Ms. Rosetta Fong Suet Sam, Chief Executive Officer of the Company said, "In the past year, Convoy has successfully made its way to get publicly listed, becoming the first IFA in Hong Kong whose shares have been listed on the Main Board of HKSE. During the year, our three principal businesses, including investment-linked assurance schemes ("ILAS"), other insurance products business and Mandatory Provident Fund (MPF) schemes, all performed well, increasing the Group's profitability continuously."
Diversifying Business for Balance Growth
Brokerage of ILAS was the Group's major revenue source. For the year ended 31 December 2010, revenue derived from ILAS brokerage amounted to HK$560.7million, representing an increase of 24.2% when compared with the year of 2009. This segment accounted for approximately 97.9% of the Group's revenue. Given the favorable investment climate, a return of investment confidence of the public, and the impact of the Lehman Brothers incident, the public has a strong preference to use financial companies and their choice was not limited to banks or insurance companies. All the above factors make the management very optimistic about the Group's future prospects and will spur us to strengthen measures to sustain a steady growth.
During 2010, the Group has proactively developed the platform for MPF business, expanding the reach by enlisting Bank of East Asia and BOCI-Prudential to be the Group's products issuers to add more choices to a current total of nine MPF products issuers, thus delivering a more comprehensive MPF product range. Although the revenue contribution from MPF schemes was still relatively small, its amount increased by a significant 913.6%, with its contribution to the Group's total revenue also increasing markedly from 0.1% of last financial year to 1.0%.
In the past year, the Group has spared no effort in developing other insurance products business, procuring quality product issuers who provide the most ideal product choices customized to clients' needs. Owing to the diversified product sales platform and Convoy's impartial positioning in independent financial planning services, the revenue derived from other insurance products business rose 79.6% in 2010. Although this kind of business is still at its infancy, yet with the Group's existing strong client base, there are many opportunities for cross-selling and cross-referrals.
Better Training to Cope with Higher Governance
In line with the establishment of an Independent Insurance Authority in Hong Kong and business development of the industry, the Group will continue to recruit more consultants, and is well prepared for the training procedure. By the end of 2010, the annual growth rate of consultants is about 8%, and nearly 70% of the licensed MPF consultants have achieved the accredited qualification. It is expected that by 2011, the rate of 100% will be achieved. In addition, the Group has formulated different measures to keep the morale and efficiency amongst the staff, maintaining a stable turnover rate.
Grasping Opportunities for Development in the Asian Region
In developing new markets, the Group has expanded outside Hong Kong especially in the Asian markets, of which performance is gradually taking shape. It is hoped that these markets will provide income contributions for the Group in the coming few years. In fact, the market is in the consolidation process. The Group is closely watching developments and would evaluate any merger or acquisition opportunity, or partnering with renowned financial institutions to facilitate business expansion and consolidate its market leadership position.
About Convoy Financial Services Holdings Limited (Stock code: 1019)
Convoy Financial Services Holdings Limited ("Convoy Financial") operates through its wholly owned subsidiary Convoy Financial Services Limited, which is the largest independent financial adviser firm in Hong Kong. With over 1,200 qualified and competent consultants, Convoy Financial Services Limited is able to select from a wide spectrum of investment-linked assurance schemes ("ILAS"), insurance products and MPF schemes to tailor the specific risks and returns expectations of customers.
