AMTD International Reports Half Yearly Financials and Completes Private Placement of New Shares
AMTD International (NYSE: HKIB) reported a 35.6% increase in revenue for the six months ended June 30, 2021, totaling HK$723.3 million (US$93.1 million), driven by strong investment banking activities. Profit rose by 4.3% to HK$629.7 million (US$81.1 million). Finance costs plummeted by 56.1% to HK$6.4 million (US$0.8 million) due to proactive balance sheet management. The company plans to issue 11,682,242 Class A shares for US$50 million and has secured a US$20 million credit facility for global expansion.
- Revenue increased by 35.6% to HK$723.3 million (US$93.1 million).
- Profit rose by 4.3% to HK$629.7 million (US$81.1 million).
- Finance costs decreased by 56.1% to HK$6.4 million (US$0.8 million).
- Proceeds from share issuance will enhance capital structure.
- Secured US$20 million credit facility for global expansion.
- Income tax expense increased significantly to HK$73.1 million (US$9.4 million).
- Accounts receivable rose 340.6% to HK$340.8 million (US$43.9 million), indicating possible cash flow issues.
Highlights of 2021 Financial Results and Key Changes for the Six Months Ended
-
Total revenue for the six months ended
June 30, 2021 , increased by35.6% as compared to the same period in prior year toHK ($723.3 million US equivalent) primarily due to the Company’s activities in investment banking business in both primary and secondary markets, as well as successful divestment of selected investment.$93.1 million
-
Finance costs for the six months ended
June 30, 2021 decreased by56.1% as compared to the same period in prior year toHK ($6.4 million US equivalent), primarily due to the Company’s efforts in balance sheet management to identify early repayment opportunities as well as elimination of all margin loan exposure.$0.8 million
-
Profit and total comprehensive income for the six months ended
June 30, 2021 , increased by4.3% as compared to the same period in prior year toHK ($629.7 million US equivalent). The Company’s management has successfully demonstrated resilience and generated solid new businesses to maintain core competitiveness amidst volatile markets during the Covid pandemic.$81.1 million
-
Developments subsequent to
June 30, 2021 -
-
Amidst global markets cyclical trends and economic uncertainties due to volatile geo-political tensions amongst other factors during Covid, the Company continuously focuses on broadening and diversifying funding channels – (1) the Company would issue and sell 11,682,242 Class A ordinary shares through a private placement of
US at a per share price of$50 million US to a number of reputable professional investors, subject to fulfilling certain closing conditions. This demonstrated the Company’s funding channel diversification through the strong SpiderNet ecosystem with full support from strategic partners. The issuance date of such shares is specified under the subject agreements as being$4.28 December 31, 2021 ; (2) the Company established a new lending bank relationship and obtained a new clean and unsecured credit facility ofUS with a reputable global financial institution. This was the first credit facility the Company obtained outside$20,000,000 Asia for its expansion around the world, demonstrating the Company’s committed efforts into global build-out with clear vision.
-
On
October 27, 2021 , perpetual securities with a principal amount of SG$11,188,000 (US equivalent) were redeemed early by the Company as part of the Company’s active balance sheet management targeting for early repayment of outstanding exposures and consequently the loan to equity ratio is improved to$8.3 million 2.26% as ofJune 30, 2021 (2.39% as ofDecember 31, 2020 ), which has been consistently lower than industry average.
-
On
September 30, 2021 , the Company repurchased certain Class B ordinary shares held byAMTD Group , the immediate holding company, amounting toHK ($5,000,000,000 US equivalent).$643.8 million
Statement from the Board Members and Senior Management:
Dr. Feridun Hamdullahpur, Chairman of the Board of the Directors, commented, “Dear shareholders and friends: I am extremely pleased with the continued growth and development of the Company, demonstrating resilience and perseverance especially during the pandemic, with such commitments and efforts led by the management team under William Fung’s leadership as the CEO, underpinning overall AMTD Group’s IDEA strategy and vision pioneered by our founder - Dr.
Despite the challenging operating environment due to COVID and volatile financial markets globally,
On behalf of the Board, I would like to take this opportunity to congratulate everyone for their dedication and perseverance. We have full confidence in the management team, and we have no doubt in our minds that the Company is on the right path of building a sustainable future and a transformational and unique global platform.”
I would like to thank the
Financial Results for the Six Months Ended
Revenue
Our revenue for the six months ended
-
Our fees and commissions for equity offerings and financial advisory services from the investment banking segment for the six months ended
June 30, 2021 increased fromHK for the same period in prior year to$211.6 million HK ($230.1million US equivalent) as we successfully branched out to secondary markets as well as maintaining its core strengths to capture opportunities in the primary markets.$29.6 million
-
Dividend and realized gain related to disposed investment for the six months ended
June 30, 2021 increased by90.5% as compared to the same period in prior year toHK ($167.8 million US equivalent), primarily due to an increase in net gain from disposal of financial instruments.$21.6 million
-
We recorded a net gain of
HK ($204.0 million US equivalent) in net fair value change on investments and derivative financial asset for the six months ended$26.3 million June 30, 2021 as compared to aHK net loss recorded for the same period in prior year, primarily due to increase in fair value of our investment portfolio but partially offset by a reduction in derivative financial assets.$5.5 million
Other Income
Other income increased by
Other Operating Expenses
Other operating expenses for the six months ended
Staff Costs
Staff costs for the six months ended
Finance Costs
Finance costs for the six months ended
Income Tax Credit / (Expense)
Income tax credit of
Profit and Total Comprehensive Income
Profit and total comprehensive income for the six months ended
Accounts Receivable
Accounts receivable increased by
Financial Assets at Fair Value Through Profit or Loss
Financial assets at fair value through profit or loss increased by
Accounts Payable
Accounts payable increased by
Exchange rate
The Company’s business is mainly conducted in
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED
Six months ended |
|||
|
2020 |
2021 |
|
|
HK$ |
HK$ |
|
|
|
|
|
REVENUE |
|
|
|
Fee and commission income |
450,979,301 |
351,522,552 |
|
Dividend and gain related to disposed investment |
88,078,159 |
167,824,938 |
|
|
539,057,460 |
519,347,490 |
|
Net fair value changes on financial assets at fair |
|
|
|
fair value through profit or loss, stock loan |
|
|
|
and derivative financial asset |
( 5,498,858) |
204,001,440 |
|
|
533,558,602 |
723,348,930 |
|
Other income |
40,587,957 |
71,500,916 |
|
Impairment losses under expected credit loss model |
|
|
|
on accounts receivable |
( 17,109,001) |
- |
|
Other operating expenses |
( 66,626,271) |
( 41,768,252) |
|
Staff costs |
( 45,291,034) |
( 43,133,986) |
|
Finance costs |
( 14,594,601) |
( 6,401,352) |
|
Net fair value changes on derivate financial liability |
- |
( 742,618) |
|
PROFIT BEFORE TAX |
430,525,652 |
702,803,638 |
|
Income tax credit / (expense) |
173,424,082 |
( 73,116,457) |
|
|
|
|
|
PROFIT FOR THE PERIOD AND TOTAL |
|
|
|
COMPREHENSIVE INCOME FOR THE PERIOD |
603,949,734 |
629,687,181 |
|
|
|
|
|
Attributable to: |
|
|
|
Owners of the parent |
587,651,843 |
567,049,552 |
|
Non-controlling interests |
- |
( 134,120) |
|
Holders of perpetual securities |
16,297,891 |
62,771,749 |
|
|
603,949,734 |
629,687,181 |
|
|
|||
EARNINGS PER SHARE ATTRIBUTABLE TO |
|
|
|
ORDINARY EQUITY HOLDERS OF THE PARENT |
|
|
|
Class A ordinary shares: |
|
|
|
Basic (HK$ per share) |
2.39 |
2.31 |
|
|
|
|
|
Diluted (HK$ per share) |
2.39 |
2.31 |
|
|
|||
Class B ordinary shares: |
|||
Basic (HK$ per share) |
2.39 |
2.31 |
|
Diluted (HK$ per share) |
2.39 |
2.31 |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT
|
|
|
|
|
2020 |
2021 |
|
|
HK$ |
HK$ |
|
Assets |
|
|
|
Current assets |
|
|
|
Accounts receivable |
77,350,250 |
340,830,778 |
|
Prepayments, deposits and other receivables |
24,872,391 |
30,837,964 |
|
Due from immediate holding company |
6,477,266,499 |
6,686,208,476 |
|
Financial assets at fair value through profit or loss |
62,519,937 |
- |
|
Derivative financial asset |
1,023,902,566 |
987,897,201 |
|
Other assets |
197,309,175 |
181,427,425 |
|
Cash and bank balances |
453,966,764 |
404,935,439 |
|
Total current assets |
8,317,187,582 |
8,632,137,283 |
|
|
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment |
111,357 |
87,872 |
|
Intangible assets |
15,171,170 |
15,171,170 |
|
Financial assets at fair value through profit or loss |
1,315,336,778 |
1,523,757,664 |
|
Stock loan |
878,483,400 |
910,069,320 |
|
Total non-current assets |
2,209,102,705 |
2,449,086,026 |
|
Total assets |
10,526,290,287 |
11,081,223,309 |
|
Equity and liabilities |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
201,986,202 |
245,487,022 |
|
Bank borrowings |
232,280,000 |
232,470,500 |
|
Other payables and accruals |
128,325,893 |
75,429,779 |
|
Tax payable |
123,289,855 |
99,946,265 |
|
Total current liabilities |
685,881,950 |
653,333,566 |
|
|
|
|
|
Non-current liabilities |
|
|
|
Derivative financial liability |
12,954,313 |
13,696,931 |
|
Convertible bond |
103,278,429 |
107,448,927 |
|
Total non-current liabilities |
116,232,742 |
121,145,858 |
|
|
|
||
Total liabilities |
802,114,692 |
774,479,424 |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(CONTINUED)
AS AT
|
|
|
|
|
2020 |
2021 |
|
|
HK$ |
HK$ |
|
Equity |
|
|
|
Class A ordinary shares (par value of |
|
|
|
as of |
|
|
|
8,000,000,000 shares authorized as of |
|
|
|
|
|
|
|
62,327,851 shares issued and outstanding as of |
|
|
|
|
48,838 |
48,838 |
|
Class B ordinary shares (par value of |
|
|
|
as of |
|
|
|
2,000,000,000 shares authorized as of |
|
|
|
|
|
|
|
183,283,628 shares issued and outstanding as of |
|
|
|
|
143,864 |
143,864 |
|
Capital reserve |
4,551,187,228 |
4,551,183,728 |
|
Exchange reserve |
1,022,840 |
1,191,641 |
|
Retained profits |
3,337,088,284 |
3,904,137,836 |
|
|
|||
Total equity attributable to ordinary shareholders |
|
|
|
of the Company |
7,889,491,054 |
8,456,705,907 |
|
Non-controlling interest |
- |
15,401,635 |
|
Perpetual securities |
1,834,684,541 |
1,834,636,343 |
|
Total equity |
9,724,175,595 |
10,306,743,885 |
|
|
|
|
|
Total liabilities and equity |
10,526,290,287 |
11,081,223,309 |
About
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the
View source version on businesswire.com: https://www.businesswire.com/news/home/20211230005313/en/
AMTD IR office (ir@amtdinc.com)
+852 3163-3389
+1 (866) 849-3788
Source:
FAQ
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