Monday, August 8, 2022
 
Columnist
Martin Hennecke
 
HARMONIC STR
HKEx Stock Code : 00033 
 
Corporate Profile
Principally engaged in the credit guarantee and investment business in the PRC, exporting business, the operation of concept hotels in Shenzhen and the provision of financial planning services in Hong Kong.

Business Review - For the year ended December 31, 2012

X Credit guarantee and investment business

In Current Year, the credit guarantee and investment business recorded revenue of HK$78.9 million and segmental profit of HK$56.3 million, both of which have great improvement from revenue of HK$6.0 million and segment loss of HK$9.9 million. The handsome return was mainly contributed by the disposal of its equity interest in a project company in respect of a piece of land located in Chaoyang District, Beijing, PRC.

In view of the increased inherent default risk of the overall market, the Group has determined to scale down the financial guarantee operations, which suspend the opening and expanding of the regional offices and branch offices and the upgrading the Taiwan operation.

During the Current Year, Market Speed Limited which is wholly-owned by the executive director of the Company, Mr. Tong Nai Kan, further covenanted by deed with the Company that it will (1) convert all its HK$150.0 million convertible bond, which were newly transferred to Market Speed Limited during the year, into fully-paid shares of the Company on or before the maturity date on August 26, 2015, subject to existing terms and conditions under which the convertible bond was issued by the Company and approved by the Stock Exchange, and waive its right to demand repayment from the Company in respect of any its convertible bond not so converted on the maturity date; and (2) procure all Market Speed Limited future transferees, if any, of the convertible bond transferred to observe and comply with the covenant. Therefore, the Company will no longer be required to provide for notional interest in respect of such amount of convertible bond in the future.

X Other business units

During the Current Year, the Group's export business was affected by the unfavorable operating conditions aroused in last year. The Group has appointed capable staff in the key positions of this segment and improved its operation efficiency by the effective cost control and simplifying the structure. Subjected to the recovery of banking facilities, the management believes the performance will be stabilized in next year.

The operation of our concept hotel business in Shenzhen during the Current Year was stable but facing a rapid change external business environmental and strong competitions. While the financial planning services business in Hong Kong was threaten by the unfavorable business environments including intense market competition and recruitment difficulties.

Business Outlook - For the year ended December 31, 2012

As the expectation of the unfavorable environment leading the impairment of the goodwill in the Current year will be lasted, the credit guarantee and investment business may not have any critical improvement in the next few years. However, the management is still looking good the China market and the Group will explore and capture any other new opportunities in any industries in China by utilizing its networks in Hong Kong, Taiwan and China.

Source: Harmonic Strait (00033) Annual Results Announcement
Chairman N/A Issued Capital (shares) 1,748M
Par Value HKD 0.1 Market Capitalisation (HKD) 229M
 
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