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NEW YORK & SINGAPORE & HONG KONG--(BUSINESS WIRE)--Sep 30, 2022--
AMTD IDEA Group (“AMTD IDEA” or the “Company”, NYSE: AMTD; 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, 2022. AMTD Group is a Hong Kong headquartered conglomerate focusing on the “IDEA” strategy to develop the four pillars of core businesses, namely international connectors and business services, digital solutions, education and training, and premium assets and hospitality.
Highlights of Financial Results and Key Changes for the Six Months Ended June 30, 2022
Recent Developments during the Six Months Ended June 30, 2022, together with Events subsequent to June 30, 2022
Statement from the Board Members and Senior Management:
Dr. Feridun Hamdullahpur, Chairman of the Board of the Directors, commented, “On behalf of the Board of Directors of the AMTD IDEA, I am very pleased to announce the unaudited financial information of the company covering the first six months ended June 30, 2022. The operating results shows a healthy, steady and stable growth in our revenue which increased by 27.5% compared to the same period in 2021. I am delighted to see this robust financial performance amid challenging and volatile environments and offer the Board’s thanks to the leadership and management for their insight, diligence, commitment, hard work, and investment intelligence. I look forward to seeing more positive and exciting results in the coming months.”
William Fung, CEO of AMTD IDEA, “While it has been almost 3 challenging years since the start of the global pandemic, coupled with increasingly challenging operating environment on the back of recent rising interest rates globally, our team has continued to excel and outperform year over year, adapting to the “new normals” and delivering sustainable solid financial and operating results. Some of the notable highlights for the interim period include total revenue increased by 27.5% to HK$922.6 million (US$117.6 million equivalent) and net profit increased by 27.3% to HK$801.4 million (US$102.1 million equivalent). Furthermore, we took various concrete steps to continuing our investment into the future, developing talents, and to building a sustainable business model by further diversifying our business into innovative yet complimentary areas such as digital solutions, global media, and real estate areas, through the acquisitions of AMTD Digital, L’Officiel and AMTD Assets, respectively. The management team is committed to carrying out the IDEA business strategies, following guidance from the board and our parent, AMTD Group, in addition to generating values and to continuing build on the already solid foundation for the benefits of our shareholders.”
Financial Results for the Six Months Ended June 30, 2022
Revenue
Our revenue for the six months ended June 30, 2022 was HK$922.6 million (US$117.6 million equivalent), compared to HK$723.3 million for the six months ended June 30, 2021. The increase of 27.5% for the period was primarily due to our active investment banking and business advisory businesses, contributions from the new businesses of digital solutions and other services, and fashion and luxury media advertising and marketing services from the acquisitions of AMTD Digital and L’Officiel, and an increase in net fair value on investments and derivative financial assets under our strategic investment business:
Other Income
Other income decreased by 31.7% as compared to the same period in prior year to HK$48.8 million (US$6.2 million equivalent), primarily due to a decrease in the average outstanding balance of interest bearing amounts due from our immediate holding company.
Other Operating Expenses
Other operating expenses for the six months ended June 30, 2022 increased by 45.1 % as compared to the same period in prior year to HK$60.6 million (US$7.7 million equivalent), primarily attributable to (i) increase in the amortization charge on the intangible assets from the aforesaid acquisitions of HK$9.2 million (US$1.18 million equivalent), (ii) additional operating expenses relating to new businesses acquired of HK$11.6 million (US$1.5 million equivalent), and (iii) an increase in business development expenses of HK$1.7 million (US$0.2 million equivalent) for overseas businesses expansion.
Staff Costs
Staff costs for the six months ended June 30, 2022 increased by 36.9% as compared to the same period in prior year to HK$59.0 million (US$7.5 million equivalent) mainly due to the additional costs from the acquisitions of new businesses during the period.
Finance Costs
Finance costs for the six months ended June 30, 2022 decreased by 61.0% as compared to the same period in prior year to HK$2.5 million (US$0.3 million equivalent), primarily due to a decrease in the interest bearing liabilities and the interest from convertible bond which was converted into Class A ordinary shares during the period.
Income Tax Expense
Income tax expense for the six months ended June 30, 2022 decreased by 4.4% as compared to the same period in prior year to HK$69.9 million (US$8.9 million), primarily due to a slightly decrease in taxable income.
Profit
Profit for the six months ended June 30, 2022 increased by 27.3% as compared to the same period in prior year to HK$801.4 million (US$102.1 million equivalent).
Accounts Receivable
Accounts receivable increased by 598.5% from HK$86.5 million as of December 31, 2021 to HK$604.3 million (US$77.0 million equivalent) as of June 30, 2022, primarily due to an increase in receivables from new businesses of HK$61.3 million (US$7.8 million equivalent) and increase in receivables generated in investment banking services of HK$427 million (US$54 million equivalent), of which were not yet due for settlement as of the period end.
Financial Assets at Fair Value Through Profit or Loss and Stock Loan
Financial assets at fair value through profit or loss and stock loan decreased by 38.2% from HK$2.8 billion as of December 31, 2021 to HK$1.7 billion (US$219.4 million equivalent) as of June 30, 2022, primarily due to (i) original investment in AMTD Digital has been eliminated to investment in subsidiary after the completion of acquisition of AMTD Digital in February 2022, offset by (ii) HK$165.6 million (US$21.1 million equivalent) of new investments acquired through the acquisition of AMTD Digital, and (iii) HK$204.1 million (US$26.0 million equivalent) of addition of new investments during the period.
Due from immediate holding company
Amount due from immediate holding company increased by 112.3% from HK$2.1 billion as of December 31,2021 to HK$4.6 billion (US$580.4 million equivalent) as of June 30, 2022, primarily due to an additional amount due from immediate holding company arising from the acquisition of AMTD Digital.
Accounts Payable
Accounts payable increased by 82.2% from HK$155.0 million as of December 31, 2021 to HK$282.5 million (US$36.0 million equivalent) as of June 30, 2022, primarily due to an increase in clients’ payables and payables to clearing house and brokers of HK$74.0 million (US$9.4 million equivalent), which was in turn attributable to the unsettled trade transactions near the period end; and an additional payable of HK$105.9 million (US$13.5 million equivalent) from new businesses, net of a decrease in clients’ monies held on trust of HK$52.4 million (US$6.7 million equivalent).
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$7.8472 to US$1.00, the exchange rate in effect as of June 30, 2022 as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. No representation is made that the Hong Kong dollar amounts could have been, or could be, converted, realized, or settled into U.S. dollars at that rate on June 30, 2022, or at any other rate.
AMTD IDEA GROUP
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2022
Six months ended June 30
2021
2022
HK$
HK$REVENUE Fee and commission income
351,522,552
474,800,943
Digital solutions and other services
—
56,018,141
Fashion and luxury media advertising and marketing services
—
7,667,252
Dividend and gain related to disposed investment
167,824,938
50,213,509
519,347,490
588,699,845
Net fair value changes on financial assets at fair value through profit or loss and stock loan
240,006,805
(141,508,552
)Net fair value changes on derivative financial assets
(36,005,365
)
475,415,376
723,348,930
922,606,669
Other income
71,500,916
57,603,453
Other operating expenses
(41,768,252
)
(60,621,102
)Staff costs
(43,133,986
)
(59,046,165
)Share of profit or losses of associates
—
(88,450
)Finance costs
(6,401,352
)
(2,494,024
)Net fair value changes on derivative financial liability
(742,618
)
13,347,266
PROFIT BEFORE TAX
702,803,638
871,307,647
Income tax expense
(73,116,457
)
(69,912,890
)PROFIT FOR THE PERIOD
629,687,181
801,394,757
Attributable to:
Owners of the parent
567,049,552
741,618,999
Holders of perpetual securities
62,771,749
61,212,612
Non-controlling interest
(134,120
)
(1,436,854
)
629,687,181
801,394,757
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT
Class A ordinary shares:
Basic (HK$ per share)
2.31
2.55
Diluted (HK$ per share)
2.31
2.55
Class B ordinary shares:
Basic (HK$ per share)
2.31
2.55
Diluted (HK$ per share)
2.31
2.55
AMTD IDEA GROUP
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT DECEMBER 31, 2021 AND JUNE 30, 2022
Dec 31, 2021
Jun 30, 2022
HK$
HK$AssetsCurrent assetsAccounts receivable
86,514,680
604,275,555Prepayments, deposits and other receivables
21,916,382
332,946,735Due from immediate holding company
2,144,975,230
4,554,755,078Derivative financial assets
969,894,519
1,445,309,895Other assets
136,065,738
97,482,172Cash and bank balances
526,206,108
140,261,201Total current assets
3,885,572,657
7,175,030,636Non-current assets
Property, plant and equipment
67,131
1,720,726Right of use assets
—
2,061,690Investment in associates
—
15,291,327Goodwill
—
58,675,041Other intangible assets
15,171,170
737,726,551Financial assets at fair value through profit or loss
2,574,695,685
1,436,656,772Stock loan
211,331,400
284,939,600Total non-current assets
2,801,265,386
2,537,071,707Total assets
6,686,838,043
9,712,102,343Equity and liabilities
Current liabilities
Accounts payable
155,020,918
282,463,255Bank borrowings
388,870,500
161,132,094Other payables and accruals
92,225,549
185,784,757Lease liabilities
—
2,778,798Provision
—
31,814,184Tax payable
136,124,845
127,928,437Total current liabilities
772,241,812
791,901,525Non-current liabilities
Deferred tax liabilities
—
76,716,735Derivative financial liability
13,752,673
—Convertible bond
111,970,384
—Total non-current liabilities
125,723,057
76,716,735Total liabilities
897,964,869
868,618,260
AMTD IDEA GROUP
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(CONTINUED)
AS AT DECEMBER 31, 2021 AND JUNE 30, 2022
Dec 31, 2021
Jun 30, 2022
HK$
HK$Equity
Class A ordinary shares (par value of US$0.0001 as of December 31, 2021 and June 30, 2022; 8,000,000,000 shares authorized as of December 31, 2021 and June 30, 2022; 62,327,851 and 144,077,210 issued and outstanding shares as of December 31, 2021 and June 30, 2022, respectively)
48,838
92,706
Class B ordinary shares (par value of US$0.0001 as of December 31, 2021 and June 30, 2022; 2,000,000,000 shares authorized as of December 31, 2021 and June 30, 2022; 183,283,628 and 233,526,979 issued and outstanding shares as of December 31, 2021 and June 30, 2022, respectively)
143,864
203,154
Treasury shares
(5,000,000,000
)
(5,000,000,000
)
Capital reserve
4,551,183,728
6,774,769,610
Exchange reserve
1,466,991
1,794,046
Retained profits
4,449,489,995
5,191,108,994
Total equity attributable to ordinary shareholders of the Company
4,002,333,416
6,967,968,510
Non-controlling interests
15,496,320
105,084,217
Perpetual securities
1,771,043,438
1,770,431,356
Total equity
5,788,873,174
8,843,484,083
Total liabilities and equity
6,686,838,043
9,712,102,343
About AMTD IDEA Group
AMTD IDEA Group (NYSE: AMTD; 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 https://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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issac.see@amtdgroup.com
KEYWORD: NORTH AMERICA UNITED STATES ASIA PACIFIC HONG KONG SINGAPORE NEW YORK
INDUSTRY KEYWORD: FINANCE BANKING DATA MANAGEMENT PROFESSIONAL SERVICES TECHNOLOGY
SOURCE: AMTD IDEA Group
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PUB: 09/30/2022 06:23 PM/DISC: 09/30/2022 06:23 PM
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