Tanrich Financial yesterday faced questions on issues ranging from high dividend payouts to compliance failures at a press briefing for its January 30 listing. The brokerage, specialising in Japanese commodity futures trading, is to raise HK$50 million by issuing 50 million new shares, or 25 per cent of its share capital. The amount is less than the total dividends of HK$64 million payable to the then-shareholders in the year to June 30 last year, compared with the company's net profit of HK$55.85 million. Chief executive Kwok Kam-hoi said the directors considered such dividends appropriate because the firm had accumulated 'a considerable reserve'. Tanrich, according to its prospectus, held net current assets of HK$44.03 million as of November 30 last year. The company was also questioned about growth prospects. More than half its profit last year came from an exceptional gain of HK$34.2 million from disposal of Hong Kong Exchanges and Clearing shares the brokerage received from the merger of the stock and futures exchanges and their associated clearing houses two years ago. The listing prospectus also showed various compliance failures involving HKEx and the Securities and Futures Commission regulations from 1994 to last year. However, Mr Kwok said none of those failures were major breaches. The firm had already taken measures to remedy them.