KVB Kunlun forecasts decrease in FY2017 net profit

Maria Nikolova

Increase in referral fees, administrative expenses and lower cash dealing income weigh on profitability of the Hong Kong FX broker.

Retail Forex broker KVB Kunlun Financial Group Ltd (HKG:6877) is forecasting a year-on-year drop in profits for the year to December 31, 2017.

In an announcement published earlier today, the broker said it expects to record a decrease in net profit for the Relevant Year as compared to the net profit recorded for the year ended December 31, 2016. The drop in net profit is mainly attributable to higher referral fees and other charges mainly caused by the increased commission rebate to external parties, as well as the decrease in cash dealing income which reflects a decline in trading volume in cash dealing business and revaluation loss on open positions as at December 31, 2017. An increase in administrative expenses mainly due to higher marketing expenses, customer handling fee expenses and computer services expenses also contributes to drop in net profits.

KVB Kunlun is expected to post its annual results for the Relevant Year no later than March 31, 2018.

The broker has recently transferred its listing from GEM to the Main Board of the Hong Kong Stock Exchange.

Back in August 2017, when the Board of KVB Kunlun first announced the planned transfer, the company said it believes that the listing transfer will enhance its corporate profile. This will, in turn, add to the competitive strength of the group and boost the confidence of its investors and stakeholders. The Board said it also expects that the Main Board trading platform will enhance the trading liquidity of the Shares as well as the fund raising capability of the Group.

The Board noted back then that that it has no immediate plans to change the nature of the business of the Group following the Transfer of Listing.

In November last year, KVB parted ways with Mr. Ng Chee Hung Frederick who has resigned as an executive director of the company. Following the resignation of Mr. Ng as an executive director of the company, he has also ceased to be the compliance officer of the company and its authorised representative. Mr. Ng has stressed that there is no disagreement between him and the board of directors of the broker.

Read this next

Digital Assets

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

“The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Reviews

IUX Broker Review

IUX, recently rebranded from IUX Markets, stands as a multi-asset Forex broker recognized for its regulatory compliance across various jurisdictions.

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

<