Mercury Securities Group Berhad (Mercury Securities or Company), today announced the Company’s consolidated financial results for the fourth quarter ended 31 October 2023 (Q4FY2023), marking a period of sustained growth.
For Q4FY2023, the Group reported revenue of RM8.71 million, which signifies a notable increase of 19.93% from RM7.26 million in the preceding quarter (“Q3FY2023”), despite challenging market conditions domestically and internationally, underscoring the Group’s performance resilience. The stockbroking segment contributed RM6.35 million, while the corporate finance segment added RM2.36 million, reflecting the Group’s multi-channel revenue stream.
Mercury Securities’ gross profit margin stood at 57.93% for Q4FY2023. The Profit Before Tax (“PBT”) for the cumulative quarters reached RM12.46 million, after fully charging the one-off non-recurring listing expenses of RM3.93 million. Excluding this one-off non-recurring listing expenses of RM3.93 million, the Group performed creditably with PBT for the current quarter of RM4.60 million and RM16.39 million for the full financial year.
The Board of Directors is pleased to declare a maiden interim dividend of 0.5 sen per share based on the entitlement date of 12 January 2024 whilst the payment date has been fixed on 2 February 2024. The Group continues to be committed to creating value for its shareholders and other stakeholders.
The Management of Mercury Securities commented, “Our credible performance this quarter, evidenced by a meaningful increase in revenue and a healthy gross profit margin, demonstrates the effectiveness of our business strategies. These results underscore our resilience and our all-round proficiency in a mixed market environment. We are particularly proud of our team’s efforts in achieving these results and remain focused on sustaining this growth trajectory.”
Looking ahead, Mercury Securities is steadfast in the Group’s commitment to driving revenue growth and optimising operating costs. Key initiatives include expanding its share margin financing portfolio, enhancing its online trading platform with algorithmic capabilities to increase market share, enlarging its proprietary trading teams and adding corporate finance personnel to further expand the corporate finance division.
Mercury Securities will also be introducing new products and services to further diversify its revenue channels and thereby expand its clients base. With these strategies in place, the Group is poised to navigate future challenges and capitalise on opportunities for the Group’s continued growth and performance.
There are no comparative year-on-year figures as Mercury Securities was only listed on the ACE Market of Bursa Malaysia on 19 September 2023.
Unveiling Investment Plans, Aiming for Growth in the ASEAN Market
SCG Decor PCL(SET: SCGD) debuted on the SET with the largest IPO of the year. The company is advancing its investment plan to foster stronger growth while implementing a strategy to grow its business by expanding into the decorative surface materials and sanitary ware markets in the ASEAN region.
Mr. Numpol Malichai, CEO and President of SCG Decor PCL (SCGD), reported that the company successfully traded its shares (SET: SCGD) for the first time on December 20, 2023, on the SET under the construction materials category. This significant move is part of the strategic restructuring of SCGD’s business to position itself as the core company within the SCG group, focusing on decorative surface materials and sanitary ware products. It aims to strengthen its financial position to support business expansion plans, ensure working capital for ongoing operations, and adjust capital structures. With over 40 years of experience and expertise in the industry, SCGD is confident that its plans to expand into the decorative surface materials and sanitary ware markets in the ASEAN region will drive robust growth.
The company has continuous plans for investment expansion, having already invested in various projects. These include initiatives such as:1. Investments to reduce energy costs and enhance production efficiency, such as installing solar power generation systems in factories utilizing biomass for hot air production in the production powder for tile manufacturing in Thailand, Indonesia, and Vietnam to reduce natural gas and coal consumption; reusing heat from furnaces in the production processes in Vietnam and the Philippines; upgrading production lines and kilns to accommodate new products and improve efficiency.2. Production line investment projects, including establishing a state-of-the-art SPC tile factory in Saraburi; expanding the production capacity for large-sized tiles and glazed porcelain in Vietnam; studying plans for setting up a new sanitary ware factory.
The company sees opportunities to expand the market for sanitary ware and a diverse range of decorative surface material products in the ASEAN region. This market has great growth potential due to economic trends, growing population, and rising incomes. The company has formulated key strategies for business expansion, including:
1) Expanding the sanitary ware business in ASEAN by leveraging strong production bases in Thailand, sourcing products from China and Vietnam, accepting a broad range of branded products, and expanding its retail and online channels, including distributor networks in Vietnam.2) Strengthen Thailand’s decorative surface materials business and expand it to ASEAN. This involves increasing sales of High-Value Added (HVA) products, studying investment plans for tile factories in southern Vietnam, expanding markets through SCG’s sales channels, expanding the SPC tile market in ASEAN, and investing in projects to expand and enhance production efficiency.3) Expanding related products and services to reinforce leadership in comprehensive surface decoration and sanitary ware services. This includes adding to the product portfolio and collaborating with potential partners in ASEAN.4) Managing the production supply chain efficiently, focusing on cost management, sourcing, and improving production efficiency towards a Smart & Green Factory to enhance profit-making capabilities.5) Sustainable growth through developing eco-friendly products and environmentally friendly production processes. The company aims to increase the proportion of SCG Green Choice products to 80% of sales by 2040 and strives towards Net Zero Carbon by 2060.
Although the company’s performance in the first 9 months of 2023 slightly lagged compared to the same period in the previous year, given the real estate situation in Vietnam, with revenue from sales at 21,522 million baht and a net profit of 760 million baht (after adjusting for non-recurring items), in the third quarter of 2023, the company achieved revenue from sales of 7,186 million baht and a net profit of 280 million baht (after adjusting for non-recurring items), representing an increase of 1.1% and 22.9%, respectively, compared to the previous quarter. This reflects an overall improvement in the economy, having passed its lowest point, and a positive trend in the market for the upcoming year. The company maintains a robust financial position, with a net debt-to-equity ratio of 0.3. Additionally, the gradually decreasing natural gas prices have positively impacted the company’s production costs.
Mr. Pichet Sithi-Amnuai, President of Bualuang Securities Public Company Limited, acting as financial advisor and underwriter, stated that SCGD is a robust company in various dimensions. It is a leader in the decorative surface and sanitary ware products business in the ASEAN region, holding the number one market share for ceramic tiles in Thailand, Vietnam, and the Philippines. Moreover, it is also the top market share holder for sanitary ware products in Thailand. The company is recognized and accepted across the ASEAN region, covering a wide customer base. It has a skilled product design and development team, modern production processes and technologies, comprehensive regional distribution channels, and is committed to sustainable growth under ESG principles.
The SCGD IPO is considered the largest this year, with a market capitalization of 18,975 million baht at the IPO price. The securities have recently been registered on the Stock Exchange of Thailand, replacing COTTO, which was delisted following its business structure adjustment plan. The IPO includes the first-ever offering to the general public and an offering to existing COTTO shareholders, involving 439,100,000 shares, equivalent to 26.61% of the company’s total issued and paid-up ordinary shares. The offering has received positive responses from investors and existing COTTO shareholders who responded well to the share purchase offer.
Distributed by MT Multimedia Co., Ltd. on behalf of SCG Decor PCLi (SCGD)For more information, please contact Thiyaporn Sriadunphan (Dah)Tel: +66 87 556 6974 l, Email: thiyaporn.s@mtmultimedia.com
During his visit to Japan, Indonesian President Joko Widodo obtained support in several sectors, including energy, transportation, and the economy. The Indonesian President visited Tokyo to attend the Japan-ASEAN Summit on Saturday (Dec 16) and the AZEC Summit on Monday (Dec 18).
During Monday’s inaugural AZEC Summit (Asia Zero Emission Community), Indonesia obtained at least 24 energy transition projects. “The summit’s deliverables include 69 cooperation agreements on energy transition, 24 of which are projects that will be worked on together by Indonesia and Japan,” Foreign Affairs Minister Retno Marsudi said.
The 24 projects involve various parties, including state-run electricity company PT PLN, state-run fertilizer enterprise Pupuk Indonesia, the National Capital Authority (OIKN), and PPT Energy Trading Co. Ltd., and cover aspects such as capacity-building for energy transition, ‘waste-to-energy,’ decarbonization, and the development of electric transmission, geothermal, and green ammonia.
The AZEC, co-initiated by Indonesia and Japan, is a platform for countries to cooperate in achieving net-zero emissions in Asia and its surrounding areas. Australia, Brunei Darussalam, the Philippines, Cambodia, Laos, Malaysia, Singapore, Thailand, and Vietnam are community members.
Indonesia considers it essential to support cooperation in decarbonization through inclusive financing and the transfer of low-carbon technology. Indonesia hoped Japan would support its downstream mineral industry and emerge as a crucial player in the global supply chain of electric vehicle batteries.
During the bilateral meeting between President Widodo and Japanese Prime Minister Fumio Kishida on Saturday (Dec 16), the leaders discussed the Jakarta Mass Rapid Transit (MRT) system, hoping that construction of the north-south corridor continues as planned with a commitment from Japan for the East-West Corridor, with groundbreaking set for August 2024.
The two leaders witnessed an MoU signing on cooperation worth 10 billion yen (equal to Rp1 trillion) between Harapan Kita Hospital and Tokushukai Medical Corporation to improve cardiovascular services in the Asian region.
Widodo and Kishida also received proposal documents issued during the ASEAN-Japan Young Business Leaders’ Summit and the ASEAN-Japan Gen-Z Business Leaders’ Summit, and they witnessed the exchange of documents on the grant of a patrol ship worth US$ 63.3 million from the Japanese government to the Indonesian Maritime Security Agency (Bakamla).
Besides the economic sector, Indonesia discussed the current situation in Palestine with Japan. Widodo reiterated Indonesia’s commitment to pushing for a lasting ceasefire, planning continuous humanitarian aid, and encouraging the immediate commencement of a peace process to end the prolonged conflict.
Strategic location, global investor base and robust legal framework
Hong Kong is an ideal listing destination for Middle East businesses, according to a new joint report by the Hong Kong Trade Development Council (HKTDC) and CCB International Capital Limited (CCB International). The report, which is released today, shows that many companies in the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) see the city as their first choice when it comes to securing funding, building stronger ties with Asia (particularly China), and, ultimately, enjoying greater global recognition.^
In order to explore the potential for UAE and KSA companies to secure listings in Hong Kong, the HKTDC and CCB International renewed their collaboration [1] to deliver the new report – Hong Kong: An Ideal Overseas Listing Venue for Middle East Companies. This led them to share a series of insights from in-depth interviews with UAE and KSA industry experts and practitioners as to Hong Kong‘s suitability as a listing destination for Middle East companies. The research, which was conducted from June to October this year, concluded that several Middle East business sectors in particular – Energy and Renewable Energy, Healthcare and High-tech, Infrastructure, and Finance – had the most to benefit from a Hong Kong listing.
Commenting on the significance of the findings, Irina Fan, Director of HKTDC Research, said: “For those Middle East companies looking to expand in the region, access to Hong Kong’s diverse pool of international institutional investors will clearly be of huge benefit. This is especially the case as many such investors have an in-depth understanding of both the pan-Asia and China-specific opportunities now emerging.” She adds, “Another plus point is the impressive breadth and depth of the Hong Kong stock market. The high level of trading activity that underpins this is a clear indication of just how robust the city’s capital market has proven over the long-term.”
Michelle Pan, Head of Corporate Finance & Capital Market Services at CCB International, said: “Following the visits of President Xi and HKSAR Chief Executive John Lee to the Middle East over the past two years, the Hong Kong capital market has begun exploring opportunities for collaboration between Middle East companies and the Hong Kong financial markets. In this context, this all-rounded research paper has been developed to explain why Hong Kong, with its unique attributes, is an ideal listing and fund raising destination for Middle East enterprises. The paper provides a comprehensive analysis of the benefits of listing in Hong Kong, including access to a deep pool of capital, a world-class regulatory framework, a vibrant and dynamic business environment, and a gateway to the vast Chinese market.”
Middle East: Looking at opportunities in new markets Middle East stock exchanges have witnessed record-breaking initial public offerings (IPOs) in recent years, with bourses in KSA and UAE all ranking among the world’s top 10 in 2022 in terms of IPO funds raised. The opportunities stemming from overseas listings, primary, dual-primary and secondary included, however, have yet to be fully exploited.
At present, many UAE and KSA companies are actively looking at opportunities in new markets and seeking funding via equity markets as they look to deliver on their global expansion plans, many of which align with the region’s commitment to economic diversification as it looks to move on from its traditional dependence on its oil and gas resources. A clear synergy, however, has become apparent between the region and fast-growing Asia, something seen as offering tremendous opportunities for many UAE and KSA businesses as they look to make good on their economic diversification aspirations.
For many UAE and KSA companies, pursuing an overseas listing is not only a way of financing their overseas expansion projects, but also an effective marketing channel as they look to enhance their global recognition and improve their visibility and credibility among clients, institutions and the investing public in a number of target markets.
Hong Kong advantages: location, rule of law, impressive market breadth and depth, global investor base During the course of the research, interviews with a number of experts highlighted the unique benefits on offer to Middle East companies that look to list in Hong Kong, one of the world’s most highly regarded financial centres. Strategically located at the gateway to many of Asia’s major markets – most notably mainland China and the ASEAN bloc – Hong Kong has considerable appeal for UAE and KSA companies. Most notably, a Hong Kong listing will ensure such businesses can fully leverage the advantages of the city’s strategic location, while gaining access to its well-established networks and stable business environment and benefitting from its rule of law and its abundant talent pool, which is widely seen as capable of delivering the highest quality of professional service. The city’s unique advantages also extend to the absence of capital controls and a transparent, resilient Linked Exchange Rate System.
Hong Kong’s robust legal framework – something that Middle East companies value particularly highly – is a significant advantage and an essential part of its appeal as a listing destination. As the only common law jurisdiction within China, Hong Kong and its legal system has a proven track record of upholding the rule of law and of maintaining judicial transparency. This framework has long functioned as a guarantee of the fundamental rights of any global enterprise or investor looking to raise or allocate funds as part of a Hong Kong-based listing initiative.
In addition, Hong Kong’s stock market has long been renowned for its maturity, vibrancy and global connectivity, while its sizeable market capitalisation consistently sees it rank among the top 10 largest stock markets on a global basis. As to its diverse investor pool, according to the Securities and Futures Commission, overseas and Mainland China investors accounted for 64% of the asset and wealth management businesses in Hong Kong in 2022, with the majority of overseas investors coming from North America (23%), Australia, New Zealand and elsewhere in the Asia Pacific region (14%), all of which instilled substantial liquidity in the local equity market.
As to how Hong Kong can optimise its role as a premium listing hub for Middle East companies, the research emphasised the importance of strengthening and sustaining its connectivity with many Middle East countries, especially at the government and regulatory level.
Overall, building closer G2G relationships with many Middle East economies was seen as of paramount importance, with the countries’ respective governments seen as playing a significant role in steering the relevant business sectors. It was also recommended that a higher level of market promotion and investment education be undertaken with regard to many Middle East prospects as a means of nurturing and directing their interest in Hong Kong’s financial services resources.
^ The first research report focuses on the overall overseas listing regime of Hong Kong as well as Hong Kong as a listing destination for UAE companies, while the subsequent report on KSA companies listing in Hong Kong will be released in the first quarter of 2024.
“Hong Kong’s substantial investor pool has unrivalled understanding of both the pan-Asia and China-specific opportunities now emerging, guaranteeing a level of insight that will be invaluable to any ambitious Middle East business.” Irina Fan, Director of HKTDC Research
“Listing in Hong Kong provides Middle East companies with a range of benefits, including access to a deep pool of capital, a world-class regulatory framework, a vibrant and dynamic business environment, and a gateway to the vast Chinese market. This makes Hong Kong an ideal destination for Middle East enterprises seeking to expand their global reach and access new opportunities.” Michelle Pan, Head of Corporate Finance & Capital Market Services, CCB International
Hong Kong is an ideal overseas listing destination for Middle East companies, according to a research report by the Hong Kong Trade Development Council (HKTDC) in collaboration with CCB International
CCB International’s Corporate Finance & Capital Market Services: Sam Siu, Tel: (852) 3911 8926, Email: samsiu@ccbintl.com
About HKTDC The Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong’s trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit: www.hktdc.com/aboutus. Follow us on Twitter @hktdc and LinkedIn
About CCB International CCB International (Holdings) Limited and its subsidiaries (collectively CCB International) is a financial and investment services company owned by China Construction Bank Corporation (CCB). CCB International is committed to expanding its international platform. Backed by the CCB global network, its business covers key financial centres worldwide including Mainland China, Hong Kong, Singapore and London. CCB International offers a full range of products and services including sponsoring and underwriting, financial advisory, corporate mergers and acquisitions, restructuring, additional issuance and placement of shares, refinancing for listed companies, direct investment, asset management, securities brokerage, market research, investment consultancy and commodities business. The corporate finance and capital market services of CCB International have assisted hundreds of companies in raising over HK$5 trillion from the global capital market. For more information, please visit: https://www.ccbintl.com.hk/English/company.html
Disclaimer: The information contained herein merely reflects the author’s own beliefs about the country concerned and the relevant economic situation. This information does not constitute or form part of any offer, solicitation or invitation to subscribe or purchase any securities. CCB International and the HKTDC do not guarantee, represent and warrant that all or any part of this information is reliable, accurate or complete.
If this document has been distributed by electronic transmission, then such transmission cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. CCB International and the HKTDC, therefore, do not accept liability for any errors or omissions in the contents of this document, which may arise as a result of electronic transmission.
Group Strives to Leverage on Strategic Growth Plans and New Project Opportunities Post-Listing
Jati Tinggi Group Berhad (Jati Tinggior the Company), one of the players in the field of infrastructure utilities engineering, celebrated the Group’s debut today on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities). The shares opened at RM0.305 per share, which reflects a 13.0% premium over the IPO price of RM0.27 per share.
Caption (L-R):Mr. Lee Tuck Wai, Chief Financial Officer, Jati Tinggi Group Berhad Dato’ Ir. Lim Yew Soon, Independent Non-Executive Director, Jati Tinggi Group Berhad Ms. Poon Lai Kit, Independent Non-Executive Director, Jati Tinggi Group Berhad Mr. Chin Jiunn Shyong, Executive Director/ COO, Jati Tinggi Group Berhad Datuk Ir. Mohd Aminuddin Bin Mohd Amin, Independent Non-Executive Chairman, Jati Tinggi Group Berhad Dato’ Seri Lim Yeong Seong, Managing Director, Jati Tinggi Group Berhad Datuk Hamzah Bin Mohd Tahir, Executive Director of Dealing, TA Securities Holdings Berhad Ms. Loo May Len, Independent Non-Executive Director, Jati Tinggi Group Berhad Ms. Vivien Hooi, Vice President, Corporate Finance, TA Securities Holdings Berhad Mr. Teo Swee Hing, Commercial Senior Manager, Jati Tinggi Group Berhad
Jati Tinggi is listed under the stock name “JTGROUP” with the stock code “0292”.
The Group’s core activities encompass a range of essential services, including procurement, installation, testing, and maintenance of underground and overhead utilities engineering services and solutions, substation EPCC services, and supply and installation of electrical equipment for electrical substations. With a focus on project planning and project management, Jati Tinggi has established the Group’s positioning as a pivotal player in the electricity supply industry in Malaysia.
Through the IPO, Jati Tinggi has successfully raised RM18.04 million. The allocation of these funds is as follows: RM7.00 million for the repayment of bank borrowings, RM7.34 million for general working capital earmarked for new and existing projects, RM0.20 million for purchasing winch machines to support business expansion, and RM3.50 million set aside for listing expenses.
Datuk Ir. Mohd Aminuddin Bin Mohd Amin, Independent Non-Executive Chairman of Jati Tinggi, expressed gratitude, “The journey to this listing has been a collaborative effort, driven by the hard work and dedication of our team. I extend my deepest appreciation to everyone involved in this journey.”
Head of Corporate Finance of TA Securities Holdings Berhad, Mr. Ku Mun Fong commented, “Jati Tinggi’s debut on the ACE Market marks a significant milestone in their corporate journey. With their business model and strategic expansion plans, Jati Tinggi is well positioned to seize emerging opportunities in the sector. We are thrilled to have been a part of this journey. We look forward to witnessing the Group’s future success and growth in the coming years capitalising on the opportunities available from the capital expenditure to be incurred by Tenaga Nasional Berhad pursuant to recent announcements.”
TA Securities Holdings Berhad served as the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO.
10th Anniversary Event for Joint Construction of Belt and Road Initiative (BRI) held in Beijing
The 10th Anniversary Event of China Communications Construction Company’s (CCCC) Joint Construction of the Belt and Road Initiative (BRI) was hosted in Beijing on December 15th.
The event, themed “In the Prosperous Silk Road’s Glow, Together We Construct a Brighter Tomorrow,” announced and commended CCCC’s top 10 projects under the BRI, including the Mombasa-Nairobi Standard Gauge Railway Project, the China-Maldives Friendship Bridge Project, the KKH Phase-II (Havelian-Thakot) Project, among others.
Pakistani Ambassador to China Khalil Hashimi presented awards for these projects. He called the KKH Phase-II (Havelian-Thakot) Project a lifeline of the China-Pakistan Economic Corridor, saying it reflects the wisdom of the Chinese side in multiple aspects.
The project marked in-depth cooperation between Pakistan and the CCCC, and also between Pakistan and China, Hashimi noted, adding that he looks forward to more outcomes of cooperation between the two countries.
The event also unveiled CCCC’s top 10 outstanding Chinese and international employees, who have been deeply involved in the infrastructure development of relevant countries and made important contributions to local socioeconomic development and people’s livelihood.
South Sudanese Ambassador to China, Monday Semaya Kenneth Kumba noted that as an internationally leading infrastructure construction company, CCCC boasts the most outstanding construction teams in the world.
The ambassador extended his gratitude to CCCC for its dedication and efforts in South Sudan, saying he looks forward to closer cooperation between more excellent teams from CCCC and his country, and more practical results in transportation infrastructure and developing local talents in South Sudan.
Over the past decade, CCCC has actively responded to the BRI, leveraged its full-industry-chain advantages, and upheld the ESG philosophy. It has launched the “Build Your Future Dream” social responsibility brand worldwide to fulfill its economic, environmental, and social responsibilities.
During the event, CCCC released its ESG Report for the BRI and its top 10 cases of CSR and brand building for the BRI.
The BRI has brought positive impacts to Sri Lanka in terms of foreign trade, tourism, and ecological conservation, said K. K. Yoganaadan, the Chargé d’Affaires of the Sri Lankan Embassy in China.
The Colombo Port City, in particular, has achieved remarkable accomplishments in environmental protection, which has safeguarded and enhanced the ecological environment and marine biodiversity in surrounding waters, Yoganaadan added.
Policymakers and business leaders will address panel discussions at the Forum, highlighting the advantages of Hong Kong as an international financial centre
The 17th AFF, the first large-scale international financial and business event of 2024 in the region, themed Multilateral Cooperation for a Shared Tomorrow, will run on 24 and 25 January
The Forum will gather more than a hundred global policymakers and business leaders, providing forward-looking analysis and fostering sustainable multilateral cooperation while capitalising on Hong Kong’s strengths as an international financial centre
Celebrated sustainability expert Prof Jeffrey D Sachs and Nobel laureate in Economics Prof Douglas W Diamond will share insights at keynote luncheons
This year adds new panel sessions on Stewarding China’s New Chapter and CIO Insights
Asian Financial Forum 2024 (AFF), co-organised by the Hong Kong Special Administrative Region (HKSAR) government and the Hong Kong Trade Development Council (HKTDC), will shed light on the importance of fostering sustainable multilateral cooperation while capitalising on Hong Kong’s strengths as an international financial centre under the current global economic landscape.
Themed Multilateral Cooperation for a Shared Tomorrow, the 17th AFF is scheduled to take place on 24 and 25 January 2024 (Wednesday and Thursday) at the Hong Kong Convention and Exhibition Centre (HKCEC). The first large-scale international financial and business event of 2024 in the region, the forum brings together over a hundred financial heavyweights, global policymakers and business leaders to discuss such topics as the global economic outlook, opportunities in Mainland China, investment prospects, green finance, financial technology and multilateral cooperation opportunities.
Luanne Lim,Chairperson of the AFF Steering Committee and Chief Executive, Hong Kong, of HSBC, said: “The theme of the upcoming AFF is Multilateral Cooperation for a Shared Tomorrow. The importance of fostering multilateral cooperation cannot be overstated, as it paves the way for sustainable and inclusive growth in our interconnected world. AFF aims to bring together influential speakers and thought leaders from across the globe to facilitate exchanges between nations and regions. Together, we will explore the challenges and opportunities faced by the financial industry in supporting economic development.”
Economist analyses global cooperation and sustainable economic development AFF’s keynote luncheons have always been a highlight and this year Prof Jeffrey D Sachs, President of United Nations (UN) Sustainable Development Solutions Network, will share his insights. A polymath who focuses on sustainable development, Prof Sachs is a reservoir of knowledge on international debt and financial crises, national economic reforms, extreme poverty, global climate change, pandemic prevention and control and many other socioeconomic matters.
From 2001 to 2018, he served as a special adviser to three UN secretaries-general. Prof Sachs was awarded the 2022 Tang Prize in Sustainable Development and the 2015 Blue Planet Prize. During the first keynote luncheon on 24 January, he will explore the post-pandemic global economic environment, analyse the latest recovery trends and emphasise the crucial role of global cooperation in sustainable development.
Nobel laureate addresses recession risks The second keynote luncheon on 25 January will hear from Prof Douglas W Diamond, Nobel Laureate in Economic Sciences in 2022 and Merton H Miller Distinguished Service Professor of Finance at University of Chicago’s Booth School of Business. Recipient of the Onassis Prize in Finance in 2018, Prof Diamond is a leading authority on bank runs and liquidity crises, earning him the title “father of modern banking theory”. He also served as the president of the American Finance Association and has taught as a visiting professor at the Hong Kong University of Science and Technology.
Given the uncertain economic outlook and increasing geopolitical risks in several regions, Prof Diamond will discuss likely interest rate moves by the United States Federal Reserve as well as risks of future economic recessions and measures to address structural financial crises.
Introducing Stewarding China’s New Chapter and CIO Insights In response to ever-changing dynamics in the global economy and investment appetite, this year’s AFF will introduce discussion sessions in accordance with market opportunities and industry trends. These sessions aimed at analysing the business opportunities presented to enterprises in emerging markets such as ASEAN and the Middle East. Stewarding China’s New Chapter and CIO Insights will be newly introduced in this year’s AFF. As China is one of the largest engines of global growth, the newly introduced session, Stewarding China’s New Chapter will analyse links with other regions and discuss the role and advantages of Hong Kong. Another new addition is CIO Insights, which will bring together renowned international institutions’ investment leaders to share unique perspectives in the investment field. The sessions will also discuss asset allocation when the investment outlook is uncertain and examine current investment trends in the macroeconomic landscape. The popular Global Economic Outlook, Dialogues for Tomorrow and Fireside Chat, will also be back, covering topics including asset and wealth management, insurance and risk management, RMB Internationalisation, multilateral capital market cooperation, food technology and supply chain security, financial technology, influential investment and financial cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and various financial, economic, social trends, and global issues.
AFF Deal-making connects funds and investment projects Over the years, the AFF Deal-Flow co-organised by the HKTDC and the Hong Kong Venture Capital and Private Equity Association has arranged more than 9,000 meetings for over 6,300 enterprises, including project owners and investors. The highly successful event has allowed participants to connect with funds and investment projects from around the world in such key industries as fintech, environment, energy and environmental technology, medical technology, deep technology and consumer goods. The coming AFF Deal-making will be held in physical form during the Forum, then online until 30 January (Tuesday), providing investors and project owners with more time to connect and explore collaboration opportunities.
The featured exhibition zones – Fintech Showcase, Fintech HK Startup Salon, the InnoVenture Salon and Global Investment Zone – will display next-generation financial concepts, start-up development and global investment opportunities, respectively. The exhibition segment is expected to bring together over a hundred local and global exhibitors, international financial institutions, technology companies, start-ups, investment promotion agencies and sponsors, including Knowledge Partner PwC, HSBC, Bank of China, Standard Chartered Bank, UBS, China International Capital Corporation (CICC), Huatai International, Cyberport and more.
Stellar lineup of themed discussions focus on Middle East and ASEAN At AFF, engaging discussion sessions and workshops over the two days will include plenary sessions, policy dialogues, keynote luncheon and breakfast panels and thematic workshops. Esteemed financial officials, international financial and multilateral organisations, financial institutions and corporate decision-makers from a diverse range of countries will grace the Forum to identify valuable opportunities while addressing pressing global issues. The forum will feature a stellar lineup of themed discussions and policy dialogues, attracting finance ministers from the Middle East, ASEAN and around the world as well as senior executives from multilateral organisations and international financial institutions.
Launch 2024 with AFF As the premier financial and business event in the region in 2024, AFF aims to help industry professionals seize opportunities and create more room for cooperation while promoting Hong Kong.
Early bird registration is now open for participants.
AFF has also collaborated with a number of organisations to provide special travel, dining and shopping discounts and privileges for overseas participants, encouraging them to make the most of their stay and experience the vitality of Hong Kong. Further details on event content, complete speaker lineup and media registration arrangements will be announced at a press conference in mid-January.
Asian Financial Forum 2024, organised by the HKSAR Government and the HKTDC, will be held on 24 and 25 January 2024 (Wednesday and Thursday) at the Hong Kong Convention and Exhibition Centre, under the theme Multilateral Cooperation for a Shared Tomorrow. The picture shows scenes from the Forum in 2023.
During the keynote luncheon on the first day of the Forum (24 January), Prof Jeffrey D Sachs, President of United Nations Sustainable Development Solutions Network, will explore the post-pandemic global economic environment, analyse the latest recovery trends, and emphasise the crucial role of global cooperation in sustainable development.
The keynote luncheon on the second day of the Forum (25 January) will feature a keynote speech by Prof Douglas W Diamond, Nobel Laureate in Economic Sciences in 2022 and Merton H Miller Distinguished Service Professor of Finance at University of Chicago’s Booth School of Business, discussing prospects for interest-rate moves by the United States Federal Reserve and economic recession risks, and delve into measures to address structural financial crises.
After the forum, AFF Deal-making participants can continue with online matchmaking and meetings that will last three days until 30 January (Tuesday). This will allow investors and project owners more time to connect and negotiate investment deals and collaborations. The picture shows scenes from the Forum in 2023.
Luanne Lim (left), Chairwoman of the AFF Steering Committee and Chief Executive, Hong Kong, of HSBC and Patrick Lau (right), Deputy Executive Director of theHKTDC
About HKTDC The Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong’s trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit: www.hktdc.com/aboutus. Follow us on Twitter @hktdc and LinkedIn
On the evening of December 15th, Beijing time, Legend Capital‘s portfolio company, ZKH Group Limited (ZKH) (NYSE: ZKH), was officially listed on the New York Stock Exchange.
ZKH is a leading maintenance, repair and operations (MRO) procurement service platform in China. The company provides one-stop MRO procurement and management services for its customers and offers digital and fulfillment solutions for participants along the industry value chain.
ZKH offers a broad range of MRO products covering all major MRO product lines and over 17 million SKUs. The company’s product lines can be broadly divided into five categories: spare parts, chemicals, manufacturing parts, general consumables, and office supplies, which consist of 32 product lines available on its platform. It has established long-term cooperation with more than 60,000 advanced manufacturing customers. At present, ZKH has 30 distribution centers and 96 transit warehouses, continuing the dedication to building a nationwide fulfillment network to deliver last-mile delivery services for customers.
Legend Capital co-led ZKH’s Series C financing in 2018 and made additional investments in the company’s subsequent financing rounds in 2019 and 2020. After the investment, Legend Capital has kept giving support and assistance to the company in multiple aspects, including business resource introduction, corporate strategy, follow-up financing and listing-related work.
Legend Capital stated: “After years of development, ZKH has demonstrated competitive strengths in the industry based on its differentiated capabilities, including one-stop supply chain capabilities covering all major product categories and procurement channels, delivery capabilities characterized by distributed warehousing and instant delivery, and service capabilities featuring online/offline products and advantageous product lines. At the same time, the company has an efficient and highly capable team consisting of outstanding talents in multiple fields, including industrial products, e-commerce, and logistics, and the management team, led by the founder of the company, Mr. CHEN Long, has also demonstrated strong resource integration capabilities. The approval for listing has reflected the resilience of ZKH’s business development. Congratulations!”
About Legend Capital Founded in 2001, Legend Capital is a leading VC&PE investor focusing on early-stage and growth-stage opportunities in China, with offices across Beijing, Shanghai, Shenzhen, Hong Kong, and Seoul, Korea.
It currently manages USD and RMB funds of over US$10 billion in commitments and has invested in around 600 companies, covering technology, healthcare, consumer, enterprise service and intelligent manufacturing sectors. Rooted in China, Legend Capital participated in the rise of many world-leading companies by solid investment coverage and systematic post-investment value-add. Over the years, Legend Capital has also become a widely recognized name in bridging key resources in China and overseas through cross-border activities, and a valuable partner to Chinese and overseas investors.
Legend Capital values long-term sustainable investment and incorporates ESG into its long-term development strategy. As a UNPRI signatory since November 2019, Legend Capital is among the first group of top VC/PE firms in China to join the initiative.
LQR House Inc. (the Company or LQR House) (NASDAQ:LQR), a niche ecommerce platform specializing in the spirits and beverage industry, provides an update on the progression of its Share Buyback Program and shares Fintel’s updated price target for LQR.
LQR House has executed another tranche of its Share Buyback Program, reinforcing its commitment to shareholder value. During the week ending, December 15, 2023, the Company strategically repurchased 499,940 shares of its common stock at an average cost of $2.26859 per share, following Rule 10b-18 guidelines. This move was the Company’s response to shareholder concerns, demonstrating the management’s attentiveness and dedication to enhancing value by reducing the available free float.
Sean Dollinger, Chief Executive of LQR House, expressed his ongoing belief in the Company’s resilience, citing the recent events as a testament to its strength. Mr. Dollinger stated, “With continued confidence in our business and pipeline, the management team believes that Company shares are an attractive investment opportunity.” He emphasized his thoughts on the undervaluation of LQR House shares and the share repurchases serving as a value-enhancing use of capital. Mr. Dollinger further commented on the Company’s financial discipline and strategic focus, stating, “As we look at the broader landscape and the strategic opportunities before us, we intend on remaining financially disciplined with a clear focus on executing against our strategy, delivering value for our shareholders, and investing in our future.”
Additionally, Fintel published an article on December 16, 2023, detailing a staggering 5900.00% increase in the average one-year price target for LQR to $306.00 per share from the prior estimate of $5.10 per share dated November 26, 2023. The average one-year price target for LQR House has been revised significantly, reflecting an increase of 11,806.61% from the latest reported closing price of $2.57 per share. This positive adjustment is based on various analysts’ estimates, ranging from a low of $303.00 to a high of $315.00 per share. For more details, read the full article here.
About LQR House Inc. LQR House intends to become a prominent force in the wine and spirits e-commerce sector, epitomized by its flagship alcohol marketplace, cwspirits.com. This platform seamlessly delivers a diverse range of emerging, premium, and luxury spirits, wines, and champagnes from esteemed retail partners like Country Wine & Spirits. Functioning as a technology-driven hub, LQR House utilizes software, data analytics, and artificial intelligence to elevate the consumer experience. CWSpirits.com stands out as the go-to destination for modern, convenience-oriented shoppers, providing a curated selection of alcohol products delivered to homes across the United States. Beyond its role as an e-commerce leader, LQR House is a marketing agency with a specialized focus on the alcohol industry. The Company measures campaign success by directly correlating it with sales on CWSpirits.com, demonstrating a proven return on investment. Backed by an influential network of over 550 figures in the alcohol space, LQR House strategically drives traffic to CWSpirits.com, enhancing brand visibility. LQR House intends to disrupt the traditional landscape of the alcohol industry, driven by its dedication to providing an unparalleled online purchasing experience and delivering tailored marketing solutions.
Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Shareholders can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement on Form S-1 filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement on Form S-1 and other filings with the SEC. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov.
Demand for AI-enabled electronics components fuels market surge
Hong Kong exports are expected to grow by 4% to 6% next year – a sharp contrast to the 11% decline in the city’s export levels recorded for the period between January and October this year.
This optimistic outlook is driven by the significant increase in demand for electronic components, partly on account of growing demand for AI-enabled devices and other finished products, which play a crucial role in boosting the city’s prospects.
Commenting on the likely upturn in Hong Kong’s export performance, Hong Kong Trade Development Council (HKTDC) Director of Research Ms Irina Fan said: “The unique properties of Hong Kong’s electronics-orientated export economy make it almost ideally positioned to take full advantage of the imminent rebound in demand for high-tech components.”
The Hong Kong Export Outlook forms part of the review of the city’s export prospects conducted annually by HKTDC Research. This wide-ranging review takes into account a wide array of factors, including many key global, regional and local economic indicators.
Light at the end of the tunnelDespite many of the factors restraining Hong Kong’s 2023 export growth likely to remain in place next year, HKTDC Research’s confidence is based on the widespread acknowledgment that the electronics sector – which accounts for 70% of all of Hong Kong’s exports – is expected to enjoy rapid growth in 2024, partly on account of growing consumer and business demand for AI-enabled PCs.
“Demand in this sector is certain to bolster the local economy overall, ensuring that Hong Kong’s wide exporter base will be fully ready and adequately resourced to take advantage of wider global economic recovery, which is expected to come to fruition over the course of 2025,” she added.
Continuously softened sentiment in the near-termExport growth is set to come after continuously softened export sentiment this year. The HKTDC Export Index contracted 5.5 points to 35 in the fourth quarter of 2023, indicating Hong Kong exporters have become more cautious amid rising geopolitical tensions, in particular the Israel-Gaza conflict, and sluggish external demand.
Exporter sentiment has declined across four of the six major industry sectors. Machinery at 40.3 (up 0.9 points) was one of the better-performing sectors, followed by electronics at 34.8 (down 6.0 points). Less optimistically, toys suffered the most substantial decline, falling 12.8 points to 29.4.
Based on a quarterly HKTDC survey of 500 exporters from six major industries – clothing, electronics, jewellery, machinery, timepieces and toys – the index above 50 indicates an optimistic outlook and below 50 pessimistic.
India, Taiwan and Mainland China markets promisingSentiment in all key export markets remains below 50. However, sentiment towards India (42.7, up 10.1 points) is the most positive, followed by Taiwan (42.5, up 4.8 points) and Mainland China (39.5, up 0.9 points). Meanwhile, exporters were less confident, when it came to their export prospects to the EU (34.6, down 2.6 points) and the US (33.6, down 2.8 points).
Economic risks and geopolitical tensions concernsLooking ahead, economic risks remain the top concern for 2024. The majority (84.7%) of respondents saw economic slowdowns or recession risks in overseas markets as the major challenge, followed by ongoing geopolitical tensions (62.5%) and rising transport costs / disruption to logistics and distribution obstructions (41.8%).
Ensuring sufficient cash flow clearly stands out as the focus for next year, with over half of the exporters intending to adopt cash flow management, significantly more than in the last survey in the third quarter this year (32%). More exporters also aim to maintain competitiveness by providing a wider range of value-added services (44.5%) and increasing marketing and promotional activities (41.2%).
HKTDC Research Principal Economist Mr Wing Chu said in addition to the common strategy of cash flow management, different industries favour various approaches. “For example, businesses in the electronics, timepieces and machinery sectors are keen to increase marketing, promotion or business matching in the coming year. Those in jewellery and clothing sectors, meanwhile, are more inclined to prioritise the use of e-commerce to drive sales growth,” he added.
HKTDC Director of Research MsIrina Fan (left) and Principal Economist Mr Wing Chu (right) announced the Hong Kong’s Export Outlook 2024 and the HKTDC Export Index for the fourth quarter of 2023 at a press conference today
HKTDC Director of Research Ms Irina Fan
HKTDC Principal Economist Mr Wing Chu
Media enquiriesPlease contact the HKTDC’s Communication and Public Affairs Department:Jane Cheung Tel: (852) 2584 4137 Email: jane.mh.cheung@hktdc.org
About HKTDCThe Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong’s trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit: www.hktdc.com/aboutus. Follow us on Twitter @hktdc and LinkedIn
