HK brokerage Guotai Junan announces application for HK$15bn medium term note program

Maria Nikolova

The listing of the Program is expected to become effective on July 15, 2019.

Hong Kong-based online trading company Guotai Junan International Hold. Limited (HKG:1788) has announced the filing  of an application with The Stock Exchange of Hong Kong Limited for the listing of the HK$15,000,000,000 medium term note program. The arranger is Guotai Junan Securities (Hong Kong) Limited.

Notes issued under the Program that are listed on The Stock Exchange of Hong Kong Limited during the period of 12 months from the date of the Offering Circular dated July 12, 2019 prepared in respect of the Program, will be by way of debt issues to professional investors only.

The listing of the Program is expected to become effective on July 15, 2019.

Further, the Issuer may also issue unlisted Notes pursuant to the Program.

As at the date of the announcement, the Board of Directors comprises four executive directors, being Dr. Yim Fung (Chairman), Mr. Wong Tung Ching, Ms. Qi Haiying and Mr. Li Guangjie; two non-executive directors, being Dr. Xie Lebin and Mr. Liu Yiyong; and four independent non- executive directors, being Dr. Fu Tingmei, Dr. Song Ming, Mr. Tsang Yiu Keung and Professor Chan Ka Keung Ceajer.

In 2018, the Group’s brokerage business registered a revenue of approximately HK$450 million, down from about HK$520 million registered in the preceding year. Excluding the effect of income arising from the listing of Guotai Junan’s parent company in 2017, brokerage income increased by 8% year-on-year. Leveraged foreign exchange contributed HK$2.36 million in revenues to the brokerage’s segment of Guotai Junan in 2018, down from from the HK$2.74 million generated in the preceding year.

For the year ended December 31, 2018, the Group recorded a total revenue of approximately HK$3.01 billion, down by approximately 4% from the preceding year. Despite the market fluctuations, income from the Group’s financial products and debt capital market businesses continued to grow rapidly and recorded the historic high, rising by 111% year-on-year to HK$640 million and 38% year-on-year to HK$480 million, respectively.

Total profit attributable to equity holders of the company amounted to about HK$800 million in 2018, down from HK$1,230 million in 2017. This represents a decrease of approximately 35%. Excluding the effect of income (on brokerage and corporate finance businesses) arising from the listing of Guotai Junan Securities Co., Ltd. (stock code: 2611.HK/601211.SS) in 2017, the Profit Attributable to Shareholders decreased by 20% year-on-year.

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