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Company Background Established in 1993, Emperor Capital Group (stock code: 717.HK) is a renowned HKbased financial institution, with remarkable development from a local brokeragehouse to an all-rounded financial institutionGLOBALSECURITIES ORATEFINANCEMORTGAGEPERSONALLOANInvestor Relations ContactsAnna LukGroup IR DirectorDirect Line: 852-2835 6783Email: annaluk@EmperorGroup.comJanice AuGroup IR ManagerDirect Line: 852-2835 6799Email: sued on 27 May 2022
Company BackgroundShareholding StructureEmperor GroupPublic42.72%57.28%Competitive StrengthsSolid FundamentalsUnique Group Synergies Tap into excellent brandreputation, by enjoying wellrecognition of “Emperor” inChinese-speaking communitiesand its synergies effect withintra-group companiesFocused Customer Reach Comparing with internationalinvestment banks, HK basedfinancial institution is moreflexible in satisfying theactual demand of 2nd/3rdtier listed issuers, which aremore active than 1st tiergiant listed corporations Established for more than 20 years,“Emperor Capital Group” is aprestigious HK based financialinstitution comprising HK andmainland investors. More than 50%of existing customers have beenstaying with us for over 10 years Create dynamic business model andenhance customers’ value byproviding one-stop financial servicesHigh Degree of Professionalism Full license covering wide range offinancial servicesComprise of highly qualified andexperienced professionalsBranch Network as at 31 March 20223 Branches inHong Kong23 Liaison Offices inmainland China1)Mongkok1)Beijing2)Sha Tau Kok2)Guangzhou3)Tsuen Wan3)Shanghaiwww.EmperorCapital.comHead Office inHong Kong23-24/F, Emperor GroupCentre, 288 HennessyRoad, Wan ChaiIssued on 27 May 2022
Loan & Financing ServicePortfolio of Financing SegmentTerm Loan: Bridging loan and structured loan Provision of tailor-made loan services and one-stop financial advisory services tosubstantial shareholders of listed companies for their asset reorganization orM&A projects Controlling stakes of listed companies are usually pledged as collateralMargin Financing Traditional source of financing, the borrowing power depending on the qualityof the underlying securities Borrowing power ranges from 10% to 70%, with margin interest rates varies fromP 3% to P 8% Its performance depends on the turnover of equity market, which serves as arelatively stable source of incomeOthers: Mortgage, tax loan and petty loan Loan period: 1 year - 2 years Surging demand for re-mortgage loan from licensedmoney lenders due to the banks’ tightening control overmortgage lending in response to adjustment in propertyvaluationBridging Loan MarketSolid Clientele BaseRiding on the renowned reputation of“Emperor” and “Emperor Capital Group”,we have established a solid base ofclientele comprising 2nd tier and 3rd tierlisted companies over the years withabundant experience in local market.Abundant Market OpportunitiesSurging demand for bridgingloan which usually ties up hugeamount per each transaction.Interest IncomePrudent RiskMonthly interest rate ranges from1.5% to 3.5%, with loan periodfrom three to nine months.Thorough assessment onthe collaterals to minimisedefault risk.3www.EmperorCapital.comIssued on 27 May 2022
Financial OverviewFinancial SummaryHK 917.4676.8346.6244.8- 29.4%ImpairmentAllowance*1,327.3939.3140.1161.8 15.5%Net Profit/(Loss)(689.7)(576.1)53.7(35.0)N/ABasic Earnings /(Loss) Per Share(HK cents)(10.23)(8.55)0.80(0.52)N/ARevenue* Represents the net impairment allowances for margin loans, and other loans and advancesSegmental PerformanceRevenue: HK 917MFinancingBrokerage ServicesPlacing & UnderwritingRevenue: HK 677MCorporate FinanceRevenue: HK 347M84.9%Revenue: HK 2021/224www.EmperorCapital.comIssued on 27 May 2022
Financial SummaryCost Structure% of Total RevenueFY2019/20FY2020/211H2020/211H2021/22Staff Cost6.8%11.5%11.4%17.0%Commission andFee Expenses4.8%7.3%7.0%8.3%Interest Expense12.0%10.6%12.7%5.9%Advertising Cost0.1%0.2%0.2%0.1%Key Financial IndicatorsHK million@30 Sep@31 043.8Total Loan Book, excluding IPO financing4,934.53,726.23,557.4Total Borrowings, excluding IPO 65.131.5%22.6%19.0%Net Asset ValueBank Balances and Cash- Bank Borrowings, excluding IPO financing- Unsecured BondsGearing Ratio(As a % of total borrowings over total equity)The average cost of funding in 1H2021/22 was 3.6% (1H2020/21: 4.5%; FY2020/21: 4.1%)5www.EmperorCapital.comIssued on 27 May 2022
Strong ClienteleSolid Customer Base Established a solid and loyal base of customers from Hong Kong and mainland China Serving over 1,200 CIES customers to facilitate application of residence in Hong Kong Active trading activities with average daily turnover reaching HK 126 million in1H2021/22Sound Track Record Active engagement in corporate transactions and IPO projects6www.EmperorCapital.comIssued on 27 May 2022
Future Strategies & AwardsFuture Strategies RetailCustomerMarket WealthManagementBusiness New BusinessOpportunities Update the frontend and backend trading systemsfurther and diversify the digital offeringsOptimise the trading experience for customers andenhance the Group’s retail market segmentcompetitivenessStrengthen its wealth management businessdevelopment by offering more unique and qualityinvestment funds and bond products and services to itsclients, in addition to insurance servicesEnrich clients' investment portfolios and enhance theirinvestment experienceExplore opportunities in penetrating into potentialloan productsSeek for strategic cooperation partners to achievesynergy and jointly capture the market opportunitiesin Hong Kong and mainland ChinaAwardsHong Kong Leaders’ Choice 2018 –Excellent Brand of Financial Instituting ServicesMetro Finance2018The Greater China Super Brands AwardEast Week2012, 2014, 2016, 2018, 2020Outstanding Corporate Strategy AwardEast Week2013, 2015, 2017, 2019 & 2021“Best in Brokerage”Capital Merits of Achievements inBanking & Finance AwardsCapital Magazine 2011-2021HKIRA 4th Investor Relations AwardCertificate of ExcellenceHong Kong Investor Relations Association2018Hong Kong Outstanding EnterpriseEconomic Digest2013, 2015, 20177www.EmperorCapital.comIssued on 27 May 2022
Others: Mortgage, tax loan and petty loan Loan period: 1 year - 2 years Surging demand for re-mortgage loan from licensed money lenders due to the banks' tightening control over mortgage lending in response to adjustment in property valuation Bridging Loan Market Abundant Market Opportunities Surging demand for bridging
