E2-Capital doubles earnings
Net profit at e2-Capital (Holdings') in the first half to June 30 more than doubled to HK$32.93 million because of expanding market share and a stake acquired in a financial associate.
The financial services and property company - formerly Goodwill Investment (Holdings) - yesterday said the results included Goodwill's earnings as well as those of investment bank e2-Capital's in May and June. Goodwill and e2-Capital's merger was completed in April.
Net profit at e2-Capital amounted to HK$22.02 million for the four months to April 30. First-half turnover was HK$639.65 million, 574 per cent up on the previous corresponding period.
The main reason for the sharp turnover rise was the inclusion of the financial results of Goodwill Financial Services (Holdings) into e2-Capital (Holdings') financial statements.
Goodwill Financial was formerly a 40 per cent-held associate of Goodwill Investment (Holdings), which acquired the remaining 60 per cent when it announced the merger with e2-Capital.
Chief executive of e2-Capital (Holdings'), Wong Sin-just said the strong profit growth was underpinned by a doubling of market share in the local shares trading market in the past year, but he declined to give specific figures.
'Commission income in the first six months has already exceeded the total commission for the whole of 1999,' he said.
Last year, Goodwill Investment (Holdings) incurred a loss of about HK$2.5 million on its 40 per cent holding in Goodwill Financial.
E2-Capital (Holdings') is seeking government approval for the pre-sale of a Kowloon property development with a gross floor area of 38,000 square feet.
Mr Wong expects the sale to start in December. When completed, it could bring in more than HK$200 million.
He said the firm - with HK$370 million of cash on hand - would consider acquiring other smaller brokerages.
It has an option until April next year to dispose of its 88 per cent interest in a packaging manufacturing company for HK$100 million, which has contributed HK$40.59 million of turnover in the first-half this year.