AMTD International Inc. (“AMTD International” or the
“Company”, NYSE: HKIB; SGX: HKB), a NYSE and SGX-ST dual
listed company and a subsidiary of AMTD Group Company Ltd.
(“AMTD Group” or the “Group”), today announced its
unaudited financial results for the six months ended June 30, 2021.
AMTD Group is a Hong Kong headquartered conglomerate focusing on
the “IDEA” strategy to develop the four pillars of core businesses,
namely investment banking, digital solutions, premium education and
real estate (“AMTD IDEA”). AMTD International represents the
first listed company within AMTD IDEA.
Highlights of 2021 Financial Results and Key Changes for the
Six Months Ended June 30, 2021
- Total revenue for the six months ended June 30, 2021, increased
by 35.6% as compared to the same period in prior year to HK$723.3
million (US$93.1 million 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.
- Finance costs for the six months ended June 30, 2021 decreased
by 56.1% as compared to the same period in prior year to HK$6.4
million (US$0.8 million 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.
- Profit and total comprehensive income for the six months ended
June 30, 2021, increased by 4.3% as compared to the same period in
prior year to HK$629.7 million (US$81.1 million 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.
- 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$50 million at a per share price of US$4.28
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 December 31, 2021; (2) the Company established
a new lending bank relationship and obtained a new clean and
unsecured credit facility of US$20,000,000 with a reputable global
financial institution. This was the first credit facility the
Company obtained outside 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$8.3 million 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 2.26% as
of June 30, 2021 (2.39% as of December 31, 2020), which has been
consistently lower than industry average.
- On September 30, 2021, the Company repurchased certain Class B
ordinary shares held by AMTD Group, the immediate holding company,
amounting to HK$5,000,000,000 (US$643.8 million equivalent).
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. Calvin Choi.
Despite the challenging operating environment due to COVID and
volatile financial markets globally, AMTD International delivered
solid operating and financial performances in the first half of
2021. In addition, the Company continued to build on its success in
the first half of 2021 by further strengthening its balance sheet
via deleveraging and diversifying and expanding its capital
base.
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.”
William Fung, CEO of AMTD International, added, “Dear
shareholders, clients, business partners and friends: 2021 has been
a challenging year with people’s everyday lives and businesses
across sectors significantly affected by the on-going pandemic,
first half of 2021 in particular with strict traveling and people
interaction restrictions. In the face of adversity and challenges,
I am proud to have witnessed the hard work, dedication, innovation
and more importantly perseverance of each and every AMTDer of AMTD
International, which directly contributed to the solid financial
results achieved in the first six months of 2021. In light of
volatile market conditions and tightening regulatory regime in the
financial sector globally, we have continued to innovate and
diversify our businesses and revenue source. We were able to
achieve over 35% year-on-year growth in total revenue and record a
net profit after tax of HK$629.7 million. Furthermore, on the back
of our solid financial fundamentals, we proactively carried out a
number of corporate actions aimed to further enhance our capital
structure and improve our financial flexibility by deleveraging and
raising additional capital. These financial enhancements will
further strengthen the capital base of the Company and pave the way
for a sustainable business expansion and financial growth in the
years to come.
I would like to thank the Board for its continuous support and
guidance, as well as the trust in the management team. I would also
like to express my most sincere gratitude to all of our
shareholders, strategic and business partners, and clients for
their support and business opportunities. Furthermore, I must thank
all AMTDers for your hard work and contributions. We will continue
to strive to innovate and deliver best-in-class services and
solutions to our clients and we are fully committed to building
AMTD as a world class global financial institution.”
Financial Results for the Six Months Ended June 30,
2021
Revenue
Our revenue for the six months ended June 30, 2021 was HK$723.3
million (US$93.1 million equivalent), compared to HK$533.6 million
for the six months ended June 30, 2020. The increase of 35.6% for
the period was primarily due to our active investment banking
businesses branching out into secondary market activities, an
increase in dividend and gain related to disposed investments, and
an increase in net fair value change on investments and derivative
financial asset under our strategic investment business:
- 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 from HK$211.6 million for the
same period in prior year to HK$230.1million (US$29.6 million
equivalent) as we successfully branched out to secondary markets as
well as maintaining its core strengths to capture opportunities in
the primary markets.
- Dividend and realized gain related to disposed investment for
the six months ended June 30, 2021 increased by 90.5% as compared
to the same period in prior year to HK$167.8 million (US$21.6
million equivalent), primarily due to an increase in net gain from
disposal of financial instruments.
- We recorded a net gain of HK$204.0 million (US$26.3 million
equivalent) in net fair value change on investments and derivative
financial asset for the six months ended June 30, 2021 as compared
to a HK$5.5 million 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.
Other Income
Other income increased by 76.2% as compared to the same period
in prior year to HK$71.5 million (US$9.2 million equivalent),
primarily due to an increase in the net average outstanding balance
due from our immediate holding company, which was interest
bearing.
Other Operating Expenses
Other operating expenses for the six months ended June 30, 2021
decreased by 37.3% as compared to the same period in prior year to
HK$41.8 million (US$5.4 million equivalent), primarily attributable
to (i) a decrease in professional and consulting fee of HK$11.2
million (US$1.4 million equivalent), and (ii) decreases in
marketing and brand promotion expenses, and traveling and business
development expenses of HK$7.8 million (US$1.0 million equivalent)
due to persisting pandemic situation.
Staff Costs
Staff costs for the six months ended June 30, 2021 decreased by
4.8% as compared to the same period in prior year to HK$43.1
million (US$5.6 million equivalent) due to enhanced cost control
during Covid amid the global economic uncertainties.
Finance Costs
Finance costs for the six months ended June 30, 2021 decreased
by 56.1% as compared to the same period in prior year to HK$6.4
million (US$0.8 million equivalent), primarily due to active
liability management to proactively reduce the gearing ahead of
maturities to continuously improve the Company’s financial metrics
in particular the loan to equity ratio which is reduced from 2.39%
as of last year end to 2.26% as of June 30, 2021.
Income Tax Credit / (Expense)
Income tax credit of HK$173.4 million and income tax expense of
HK$73.1 million (US$9.4 million equivalent) were recorded for the
six months ended June 30, 2020 and 2021, respectively. The change
was primarily due to a reversal of deferred tax liability of
HK$242.9 million provided on fair value changes of certain
investments in prior period, which were considered to be capital
gains in nature and therefore not subject to profits tax.
Profit and Total Comprehensive
Income
Profit and total comprehensive income for the six months ended
June 30, 2021 increased by 4.3% as compared to the same period in
prior year to HK$629.7 million (US$81.1 million equivalent).
Accounts Receivable
Accounts receivable increased by 340.6% from HK$77.4 million as
of December 31, 2020 to HK$340.8 million (US$43.9 million
equivalent) as of June 30, 2021, primarily due to an increase in
receivable from new businesses generated in investment banking
service of HK$250.2 million (US$32.3 million equivalent).
Financial Assets at Fair Value Through
Profit or Loss
Financial assets at fair value through profit or loss increased
by 10.6% from HK$1.4 billion as of December 31, 2020 to HK$1.5
billion (US$196.2 million equivalent) as of June 30, 2021,
primarily attributable to a combined effect of (i) net appreciation
in value of HK$208.4 million (US$26.8 million equivalent), and (ii)
disposal of investments of HK$62.5 million (US$ 8.1 million
equivalent) during the six months ended June 30, 2021, and (iii)
reduction in value of derivative financial asset of HK$36.0 million
(US$4.6 million equivalent).
Accounts Payable
Accounts payable increased by 21.5% from HK$202.0 million as of
December 31, 2020 to HK$245.5 million (US$31.6 million equivalent)
as of June 30, 2021, primarily due to an increase in clients’
payables and payables to clearing house and brokers of HK$43.3
million (US$5.6 million equivalent), which was in turn attributable
to the unsettled trade transactions near the period end.
Exchange rate
The Company’s business is mainly conducted in Hong Kong and most
of its revenues generated are denominated in Hong Kong dollars.
This announcement contains translations of Hong Kong dollars into
U.S. dollars solely for the convenience of the reader. Unless
otherwise noted, all translations from Hong Kong dollars to U.S.
dollars are made at a rate of HK$7.7658 to US$1.00, the exchange
rate in effect as of June 30, 2021 as set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve System. No representation is made that the Hong Kong dollar
amounts could have been, or could be, converted, realized, or
settled into U.S. dollars at that rate on June 30, 2021, or at any
other rate.
AMTD INTERNATIONAL INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2020 AND
2021
Six months ended June 30,
2020
2021
HK$
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
AMTD INTERNATIONAL INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
AS AT DECEMBER 31, 2020 AND JUNE 30, 2021
December 31,
June 30,
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
AMTD INTERNATIONAL INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION (CONTINUED)
AS AT DECEMBER 31, 2020 AND JUNE 30, 2021
December 31,
June 30,
2020
2021
HK$
HK$
Equity
Class A ordinary shares (par value of
US$0.0001
as of December 31, 2020 and June 30,
2021;
8,000,000,000 shares authorized as of
December 31, 2020 and June 30, 2021,
respectively;
62,327,851 shares issued and outstanding
as of
December 31, 2020 and June 30, 2021,
respectively)
48,838
48,838
Class B ordinary shares (par value of
US$0.0001
as of December 31, 2020 and June 30,
2021;
2,000,000,000 shares authorized as of
December 31, 2020 and June 30, 2021,
respectively;
183,283,628 shares issued and outstanding
as of
December 31, 2020 and June 30, 2021,
respectively)
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 AMTD International Inc.
AMTD International Inc. (NYSE: HKIB; SGX: HKB) is a premier Hong
Kong-headquartered financial institution group connecting companies
and investors from Asia, including China and Hong Kong as well as
the ASEAN markets with global capital markets. Its comprehensive
one-stop financial service solutions strategy addresses different
clients’ diverse and inter-connected financial needs across all
phases of their life cycles. Leveraging its deep roots in Asia and
its unique eco-system — the “AMTD SpiderNet” — the Company is
uniquely positioned as an active super-connector between clients,
business partners, investee companies, and investors, connecting
the East and the West. For more information, please visit
www.amtdinc.com or follow us on Twitter at “@AMTDGroup.” For the
Company’s announcements, please visit
http://ir.amtdinc.com/News.
Safe Harbor Statement
This press release contains statements that may constitute
“forward-looking” statements pursuant to the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “aims,”
“future,” “intends,” “plans,” “believes,” “estimates,” “likely to,”
and similar statements. Statements that are not historical facts,
including statements about AMTD’s beliefs, plans, and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. Further information regarding
these and other risks is included in AMTD’s filings with the SEC.
All information provided in this press release is as of the date of
this press release, and AMTD does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
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AMTD IR office (ir@amtdinc.com) AMTD International Inc. +852
3163-3389 +1 (866) 849-3788
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