CLSA Premium Ends H1 2021 with $3.8 Million Loss

Hong Kong-headquartered CLSA Premium Limited (HKG:6877), a foreign exchange (forex) broker, has published its half-yearly financials for the first six months of 2021, ending on June 30. It reported a significant drop in its business, resulting in further deepening of its losses.

According to the unaudited figures, the broker generated total revenue of HK$3.8 million (around $488,300) in the six months period, which is a 42 percent decline from the previous year.

The financial disclosure detailed that CLSA gained HK$1.29 million, compared to HK$2.22 million, from leveraged foreign exchange and other trading income, while $2.48 million was generated from its other income sources. Fees and commissions brought in HK$28,000, down from the previous year’s HK$44 million.

After considering all expenses, the broker ended the period with a net loss of HK$29.98 million (around $3.8 million): in the equivalent period of the previous year, the broker reported a net loss of HK$21.2 million.

Loss was Expected

The loss from the brokerage did not come as a surprise as CLSA issued a profit warning earlier this year, disclosing the slowdown in its business. The latest figures also remained in line with the previously made estimates.

Previously known as KVB Kunlun, CLSA Premium primarily focuses on three markets – Hong Kong, Australia and New Zealand – with its brokerage services. Only operations from Aussie clients generated some business for the broker.

Its New Zealand business, however, faced a dent as the local regulator imposed several conditions on its license. The broker also put aside HK$5.6 million as provisions to cover the penalty imposed on it by New Zealand’s Financial Market Authority.

Meanwhile, last year a shareholder of the company floated business wind-up proposal twice, but it got quashed both times by a majority of shareholders.

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