CLSA Premium Ends H1 2021 with $3.8 Million Loss
- The broker only generated business from its Australian clients.
Hong Kong-headquartered CLSA Premium Limited (HKG:6877), a foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) broker, has published its half-yearly financials for the first six months of 2021, ending on June 30. It reported a significant drop in its business, resulting in deepening its losses further.
According to the unaudited figures, the broker generated total revenue of HK$3.8 million (around $488,300) in the six month period, which is a 42 percent decline from the previous year.
The financial disclosure detailed that CLSA gained HK$1.29 million, compared to HK$2.22 million, from leveraged foreign exchange and other trading income, while $2.48 million was generated from other income sources. Fees and commissions brought in HK$28,000, which is down from the previous year’s HK$44 million.
After considering all expenses, the broker ended the period with a net loss of HK$29.98 million (around $3.8 million): in the equivalent period of the previous year, the broker reported a net loss of HK$21.2 million.
Loss Was Expected
The loss from the brokerage did not come as a surprise as CLSA issued a profit warning earlier this year, disclosing the slowdown in its business. In addition, the latest figures remained in line with the previously made estimates.
Previously known as KVB Kunlun, CLSA Premium primarily focuses on three markets with its brokerage services: Hong Kong, Australia and New Zealand. Only operations from Aussie clients generated some business for the broker.
However, its New Zealand business faced a dent as the local regulator imposed several conditions on its license. Furthermore, the broker put aside HK$5.6 million as a provision to cover the penalty imposed on it by New Zealand's Financial Market Authority.
Meanwhile, last year a shareholder of the company floated a business wind-up proposal twice, but it got quashed both times by a majority of shareholders.
Hong Kong-headquartered CLSA Premium Limited (HKG:6877), a foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) broker, has published its half-yearly financials for the first six months of 2021, ending on June 30. It reported a significant drop in its business, resulting in deepening its losses further.
According to the unaudited figures, the broker generated total revenue of HK$3.8 million (around $488,300) in the six month period, which is a 42 percent decline from the previous year.
The financial disclosure detailed that CLSA gained HK$1.29 million, compared to HK$2.22 million, from leveraged foreign exchange and other trading income, while $2.48 million was generated from other income sources. Fees and commissions brought in HK$28,000, which is down from the previous year’s HK$44 million.
After considering all expenses, the broker ended the period with a net loss of HK$29.98 million (around $3.8 million): in the equivalent period of the previous year, the broker reported a net loss of HK$21.2 million.
Loss Was Expected
The loss from the brokerage did not come as a surprise as CLSA issued a profit warning earlier this year, disclosing the slowdown in its business. In addition, the latest figures remained in line with the previously made estimates.
Previously known as KVB Kunlun, CLSA Premium primarily focuses on three markets with its brokerage services: Hong Kong, Australia and New Zealand. Only operations from Aussie clients generated some business for the broker.
However, its New Zealand business faced a dent as the local regulator imposed several conditions on its license. Furthermore, the broker put aside HK$5.6 million as a provision to cover the penalty imposed on it by New Zealand's Financial Market Authority.
Meanwhile, last year a shareholder of the company floated a business wind-up proposal twice, but it got quashed both times by a majority of shareholders.