Mason Group Holdings Limited (“Mason Group” or the “Group”, stock code: 273.HK) today announced its unaudited interim results for the six months ended 30 June 2019 (the “Period”). During the Period, the Group’s turnover dropped by approximately 16.42% to approximately HK$1,538.89 million and net profit for the Period was approximately HK$100.82 million. Profit attributable to equity holders of the Group amounted to approximately HK$90.65 million in the first six months of 2019, representing a 33.07% decline compared to HK$135.43 million for the same period in 2018. Basic and diluted earnings per share were HK0.20 cents.
Mr. CHANG Tat Joel, Executive Director and Chief Operating Officer of Mason Group, said, “The performance of the Group’s operating businesses declined in the first six months of 2019 as a result of market uncertainties and volatility. The net fair value losses on listed equity investments held by the Group and the allowance for expected credit losses in the financial brokerage business led to a decrease in profit. For the rest of the year, we will take a prudent approach in reviewing the overall investment and business strategy, while proactively exploring new expansion opportunities. Meanwhile, the Group has dedicated abundant resources into integrating and consolidating its current financial and healthcare business units to create synergy and enhance future cross-selling capabilities during the Period. More value-creation and organic growth can be expected in the near future.”
With the global economic slowdown and continuing uncertainties over international trade, economic growth in Asia has been sluggish. In the first six months of 2019, the Group’s financial services division exercised caution and focused on integrating and consolidating its financial platform with the recently acquired businesses, including the European private bank, Raiffeisen Privatbank Liechtenstein AG, which has implemented a series of operational and management restructuring to facilitate its expansion into Asia, as well as the Hong Kong wealth management company, Harris Fraser Group Limited and its subsidiaries, which have established a new brand dedicated to servicing affluent and high net worth clients from China and Hong Kong, and put together two new sales and wealth management teams to contribute to the Group’s financial services platform during the Period. In addition, the Group’s wealth and asset management businesses have recently expanded into the Korean market. This expansion is expected to contribute additional operating income to the Group’s financial wealth and asset management businesses. During the Period, the total turnover and operating income contributed by the financial services business segment were approximately HK$246.77 million and HK$218.79 million, respectively, with a 47.90% increase in operating income over the same period in 2018. The business segment contributed approximately 16.04% and 14.48% to the Group’s total turnover and operating income, respectively.
As demand for quality and premium healthcare services continues to grow steadily, the Group sees the growth potential of the healthcare business investments, aiming particularly at the huge demand for premium healthcare and medical tourism in Asia, especially in China. During the Period, the Group focused on integrating its existing premium healthcare business, expanding to Australia, New Zealand and Thailand through the investment in an Australian assisted reproductive services (“ARS”) group, Genea Limited. In addition, Pangenia Inc and its subsidiaries (“Pangenia”) have provided genetic diagnostic and advisory services complementary to the healthcare platform. To further strengthen the healthcare business investment platform, the Group made an investment in Mason Supreme Healthcare Group Limited (“MSH”), a premium medical healthcare service provider in Hong Kong, in the first half of 2019, to build a comprehensive premium healthcare platform that provides services including health screening services, precision body checks, genetic diagnosis, health supplements sales, precision health management, pediatrics, dental care, assisted reproduction (eggs freezing & IVF) and medical tourism. MSH is expected to be one of the major client channels of the Group to cross sell services provided by the Group’s other healthcare units. At the same time, the Group is actively looking to expand into new markets in the Asia Pacific region both organically and by way of other strategic investments. During the Period, the profits of the Group’s healthcare business investments were entirely contributed by the associated companies, The Women’s Clinic Group and Pangenia. The Group shared approximately HK$11.42 million of their profits.
Taking into consideration the changing global economic conditions, rising trade barriers between countries and regulatory uncertainties in the food industry, Mason Group has decided to reduce its exposure to cross-border trading business and has been progressively exiting from its mother-infant-child consumer investments. Although the Group’s profit was affected by the expected one-off loss on the disposal of the Group’s entire shareholding in Blend and Pack Pty. Ltd. during the Period, the Group considers the disposal to be in line with its business strategy to refocus on healthcare and financial businesses.
Going forward, the Group remains committed to consolidating and integrating the Group’s financial service businesses. Leveraging on the platform’s geographical reach, the Group will continue to offer Asian financial services and products to the clientele in Europe, while providing premium European private banking services to high net worth individuals in Asia. The Group has introduced a new team of client relationship managers who are experienced in servicing Chinese and Hong Kong clients during the period. The team is expected to significantly increase RPL’s AUM and revenue in the near future. For the healthcare platform, the Group will continue to grow its ARS network globally through organic growth and strategic acquisitions. The Group is also considering a horizontal expansion of service offerings to include other ARS and women’s health-related services. It is the Group’s ultimate vision to establish a global premium healthcare platform focusing on women’s health, and to develop the first health management organization in the Greater Bay Area, capable of providing patients one-stop healthcare solutions from prevention and diagnosis to treatment and global referral.
Mr. KO Po Ming, Executive Director, Chairman and Chief Executive Officer of Mason Group, said, “Uncertainties stemming from the US-China trade tensions continue to dampen trading activities and investor sentiments in Asia. Ongoing controversies in Hong Kong further add complications to the economy of Hong Kong. Global financial markets face growing downward pressure as we expect negative growth in the coming half year and impairment of some of our businesses may occur if the economy worsens. Nevertheless, as we brace for the impact of the economic downturn, we will continue our efforts in promoting cross-selling activities between the Group’s financial services and healthcare businesses and seek to create synergies between two potentially overlapping clienteles.”
About Mason Group Holdings Limited
Mason Group Holdings Limited (stock code: 273.HK) is a global health and wealth solution services conglomerate. It principally provides comprehensive financial services in Hong Kong, including dealing in securities, commodities broking, provision of securities margin financing, provision of investment and corporate finance advisory services, investment in securities trading, money lending and investment holding. The Group also pursues a direct investment strategy focusing primarily on the healthcare sector with an aim to establish a global integrated healthcare and financial ecosystem. For more information, please visit: http://www.masonhk.com
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