| Convoy Announces 2011 Interim Results Financial Highlights:
(Hong Kong, 30 August 2011) – Convoy Financial Services Holdings Limited ("Convoy" and together with its subsidiaries, the "Group"; stock code: 1019), the largest independent financial adviser ("IFA") firm in Hong Kong, today announced the unaudited interim results of the Group for the six months ended 30 June 2011. During the period under review, the Group recorded revenue of approximately HK$316 million, around 28.4% higher than the same period last year. The increase was mainly attributable to the increased income from investment-linked assurance schemes (ILAS) and MPF schemes. Profits attributable to owners of the Company also increased by 29.2% to HK$37.7 million, along with around a 0.1 percentage points increase in net profit margin to 11.9%. Basic earnings per share reached HK 9.4 cents. For the six months ended 30 June 2011, the Board recommended the payment of an interim dividend of HK 2 cents per share. The Group continued to maintain a healthy financial position, with cash and cash equivalents amounted to approximately HK$201 million (31 December 2010: HK$227 million). Current ratio improved from approximately 2.0 as at 31 December 2010 to approximately 2.4 as at 30 June 2011. The Group had not incurred any borrowings as at 30 June 2011. Mr. Quincy Wong Lee Man, Chairman of the Company said, "In the first half of 2011, our active expansion in Asia during the period has begun to bear fruit. Through the merger and acquisition action and the capital financing through the proposed Taiwan Depository Receipt (TDR) listing, we have started our expansion into Mainland China and Asian markets, while consolidating our leading presence in local markets through promotion of our company brand. Convoy recorded outstanding results in the first half as our strong consultancy team has continued to secure new customers". Diverse business development to boost simultaneous growth In the first half of 2011, the Group has actively developed its MPF platform by implementing a business diversification strategy. The revenue derived from this segment increased by approximately 103%, which boosted its revenue contribution from 0.2% in the corresponding period last year to approximately 0.4%. The Hong Kong Government ("Government") is to establish the legislative timetable for enhanced regulation of MPF intermediaries this year. The Government also plans to implement the Employee Choice Arrangement in the second half of 2012. According to the information of Mandatory Provident Fund Schemes Authority ("MPFA"), there are more than 2.5 million MPF account holders in Hong Kong. The Group has prepared well to tap the huge development potential of this market, setting up a support department for MPF development and enhancing internal training for better equipping its manpower. In addition, the Group has fulfilled a corporate citizenship role by educating the public through external promotion via various channels and regular release of MPF-related information. Business expansion strategy in Asia in full swing The Group has been actively expanding its business overseas and has signed a Memorandum of Understanding with SinoPac Securities in Taiwan for that company to provide corporate financing services related to the TDR to the Group. On 8 August this year, the Company has made an application to the Taiwan Stock Exchange and the Taiwan Central Bank for the Proposed TDR Listing, representing 40,000,000 New Shares to be issued by the Company and 40,000,000 existing Shares to be offered by CFG. The Group has also signed a conditional Sale & Purchase Agreement with IPP Financial Services Holdings Ltd, the largest IFA in Singapore, to acquire 100% of its equity interest. This marks an important milestone for the Group in its expansion of business in Asia. Mr. Wong concluded, "Looking ahead, we will remain aggressive yet practical in implementing our regional expansion strategy. We will continue to look for suitable acquisitions opportunities in Asian regions beyond Hong Kong and acquire and develop insurance agencies, insurance brokers, investment consultancy firms and IFAs in the region including Mainland China. In addition, we will enhance the support provided by the backend system to help our businesses in all regions to operate efficiently and realise potential synergies so as to build the Group into the largest IFA in Asia". About Convoy Financial Services Holdings Limited Media enquiries:
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