Hong Kong-focused forex broker, KVB Kunlun Financial Group Limited, has released a statement announcing that the company expects to record a large increase in net profit for the six months ended June 30, 2018. This is in comparison to the same period in 2017.
The jump in profits is due to income from the fair value gain on the derivative portion of convertible bonds. The announcement follows a preliminary review by the board of directors. The broker is in the process of finalizing the results, which should be published no later than August 31, 2018.
Following the news, on the Nikkei Markets on the Tokyo Stock Exchange, shares for KVB Kunlun Financial Group rose by 6.2 percent. This was a relatively good performance during a declining trend for Hong Kong shares, as rising US-China tensions grow.
NEXT BLOCK SOFIA 2.0 + Fabulous Blockchain After-PartyGo to article >>
KVB Kunlun sees a disappointing 2017
The boost in profit is good news for the forex broker, which saw disappointing financial results in 2017. Earlier this year in March, Finance Magnates reported that although strong performance was seen in the group’s leveraged foreign exchange (FX) trading, its overall bottom line figures were sharply lower relative to a year ago.
Profit, in particular, took a real hit in 2017, coming in at $3.5 million (HK$27.4 million). This was a notable 29.3 percent year-on-year drop from 2016, which saw an overall profit of $4.99 million (HK$38.7 million).
The Cayman Islands-registered company also reported diluted earnings per share of 17 cents (HK$1.35) in 2017. This was a steep decline of almost 30 percent from 24 cents (HK$1.90) in 2016.