CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET (THE GEM ) OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE STOCK EXCHANGE ) GEM has been positioned as

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2 CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET (THE GEM ) OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE STOCK EXCHANGE ) GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. 香 港 聯 合 交 易 所 有 限 公 司 ( 聯 交 所 ) 創 業 板 ( 創 業 板 ) 之 特 點 創 業 板 的 定 位, 乃 為 相 比 其 他 於 聯 交 所 上 市 的 公 司 帶 有 較 高 投 資 風 險 的 公 司 提 供 一 個 上 市 的 市 場 Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. 有 意 投 資 者 應 了 解 投 資 於 該 等 公 司 的 潛 在 風 險, 並 應 經 過 審 慎 周 詳 的 考 慮 後 方 作 出 投 資 決 定 創 業 板 的 較 高 風 險 及 其 他 特 色 表 示 創 業 板 較 適 合 專 業 及 其 他 經 驗 豐 富 投 資 者 Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the main board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM. 由 於 創 業 板 上 市 公 司 的 新 興 性 質 使 然, 在 創 業 板 買 賣 的 證 券 可 能 會 較 於 聯 交 所 主 板 買 賣 的 證 券 承 受 較 大 的 市 場 波 動 風 險, 同 時 無 法 保 證 在 創 業 板 買 賣 的 證 券 會 有 高 流 通 量 的 市 場 Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report. 香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 佈 之 內 容 概 不 負 責, 對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明, 並 明 確 表 示 概 不 就 因 本 公 佈 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任 This report, for which the directors (the Directors ) of KVB Kunlun Financial Group Limited (the Company, together with its subsidiaries, the Group ) collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM (the GEM Listing Rules ) for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this report is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this report misleading.

3 KVB KUNLUN FINANCIAL GROUP LIMITED 昆 侖 國 際 金 融 集 團 有 限 公 司 Contents FIRST QUARTERLY REPORT 2014 二 零 一 四 年 第 一 季 度 報 告 目 錄 Corporate Information 3 Management Discussion and Analysis 6 Condensed Consolidated Statement of Comprehensive Income 8 Condensed Consolidated Statement of Changes in Equity 10 Notes to the Financial Information 11 Other Information 21

4 FIRST QUARTERLY REPORT 2014 二 零 一 四 年 第 一 季 度 報 告 CORPORATE INFORMATION 公 司 資 料 DIRECTORS Executive Directors Mr. LIU Stefan (Chief Executive Officer) Mr. NG Chee Hung Frederick 董 事 執 行 董 事 Non-executive Directors Mr. LI Zhi Da (Chairman) Mr. Stephen Gregory McCOY 非 執 行 董 事 Stephen Gregory McCOY Independent Non-executive Directors Ms. ZHAO Guixin Mr. Cornelis Jacobus KEYSER Mr. LIN Wenhui 獨 立 非 執 行 董 事 Cornelis Jacobus KEYSER COMPANY SECRETARY Ms. CHENG Wing Sze (ACS, ACIS) 公 司 秘 書 (ACS, ACIS) COMPLIANCE OFFICER Mr. NG Chee Hung Frederick 合 規 主 任 AUDIT COMMITTEE Mr. LIN Wenhui (Chairman) Ms. ZHAO Guixin Mr. Cornelis Jacobus KEYSER 審 核 委 員 會 Cornelis Jacobus KEYSER REMUNERATION COMMITTEE Ms. ZHAO Guixin (Chairman) Mr. Cornelis Jacobus KEYSER Mr. LIN Wenhui 薪 酬 委 員 會 Cornelis Jacobus KEYSER NOMINATION COMMITTEE Ms. ZHAO Guixin (Chairman) Mr. Cornelis Jacobus KEYSER Mr. LIN Wenhui 提 名 委 員 會 Cornelis Jacobus KEYSER 3

5 KVB KUNLUN FINANCIAL GROUP LIMITED 昆 侖 國 際 金 融 集 團 有 限 公 司 CORPORATE INFORMATION 公 司 資 料 CORPORATE GOVERNANCE COMMITTEE Mr. Cornelis Jacobus KEYSER (Chairman) Mr. LIU Stefan Ms. ZHAO Guixin Mr. LIN Wenhui 企 業 管 治 委 員 會 Cornelis Jacobus KEYSER REGISTERED OFFICE Cricket Square Hutchins Drive PO Box 2681 Grand Cayman KY Cayman Islands 註 冊 辦 事 處 Cricket Square Hutchins Drive PO Box 2681 Grand Cayman KY Cayman Islands HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS IN HONG KONG Suites 7501 & 7508, 75/F International Commerce Centre 1 Austin Road West, Kowloon Hong Kong 總 部 及 香 港 主 要 營 業 地 點 CAYMAN ISLANDS PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE Codan Trust Company (Cayman) Limited Hutchins Drive PO Box 2681 Grand Cayman KY Cayman Islands 開 曼 群 島 主 要 股 份 過 戶 及 登 記 處 Codan Trust Company (Cayman) Limited Hutchins Drive PO Box 2681 Grand Cayman KY Cayman Islands HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE Union Registrars Limited 18th Floor, Fook Lee Commercial Centre, Town Place 33 Lockhart Road Wanchai Hong Kong 香 港 股 份 過 戶 及 登 記 分 處

6 FIRST QUARTERLY REPORT 2014 二 零 一 四 年 第 一 季 度 報 告 CORPORATE INFORMATION 公 司 資 料 PRINCIPAL BANKERS ANZ Bank New Zealand Limited Level 16, The National Bank Centre 209 Queen Street, Auckland New Zealand 主 要 往 來 銀 行 ANZ Bank New Zealand Limited Level 16, The National Bank Centre 209 Queen Street, Auckland New Zealand Bank of Communications Co., Ltd., Hong Kong branch 20 Pedder Street, Central Hong Kong 20 The Bank of East Asia, Limited 8th Floor, 10 Des Voeux Road Central Hong Kong 10 8 Citibank, N.A. 44th Floor, Citibank Tower Citibank Plaza 3 Garden Road, Central Hong Kong 3 44 COMPLIANCE ADVISER Quam Capital Limited 18th-19th Floors, China Building 29 Queen s Road Central Hong Kong 合 規 顧 問 AUDITORS PricewaterhouseCoopers Certified Public Accountants 22nd Floor, Prince s Building Central Hong Kong 核 數 師 22 STOCK CODE 8077 股 份 代 號 8077 COMPANY S WEBSITE 公 司 網 站 5

7 KVB KUNLUN FINANCIAL GROUP LIMITED 昆 侖 國 際 金 融 集 團 有 限 公 司 MANAGEMENT DISCUSSION AND ANALYSIS 管 理 層 之 討 論 及 分 析 The board of Directors (the Board ) of the Company is pleased to present the unaudited condensed consolidated results of the Group for the three months ended 31 March 2014, together with the unaudited comparative figures for the corresponding period in BUSINESS REVIEW During the first three months in 2014, reduced volatility in the foreign exchange ( FX ) and commodity market have been observed. The gold price mainly traded within a range for the first three months of 2014, compared with a sharp downward trend in the same period in The price of the EUR/USD was also less volatile in the first three months of 2014, compared with the movement in the same period in The highest and the lowest level of the EUR/USD were seen to be and respectively, a nearly 1,000-pip movement in the first quarter 2013, while the movement of the price in the first quarter 2014 only presented a 500-pip change. The XAU/USD and the EUR/USD were the most popular trading pairs in both quarters, followed by the AUD/USD, GBP/USD and USD/JPY. Due to the lack of market momentum in the first quarter 2014, a narrowed profit margin earned from the trading volume of the clients has been observed. 業 務 回 顧 , During the first quarter in 2014, the Group has taken moves to narrow the spread of most cross currency pairs. This move has successfully enhanced the trading experience of the clients of the Group, resulting in a marked increase in the dollar amount of trading volume for most non-jpy cross currency pairs. In March 2014, the Group launched a CHINA300 index contract for difference ( CFD ). This CFD product is designed to meet the needs of the proportion of the clients who are interested in investing in the Chinese stock markets. In addition, the Group added another commodity under leveraged trading, copper CFD. This continues to be in line with the current market trend that investors invest in commodities as a way to safeguard the value of their wealth

8 FIRST QUARTERLY REPORT 2014 二 零 一 四 年 第 一 季 度 報 告 MANAGEMENT DISCUSSION AND ANALYSIS 管 理 層 之 討 論 及 分 析 FINANCIAL PERFORMANCE The Group recorded a total income of approximately HK$24.3 million for the three months ended 31 March 2014, a 23.9% decrease from approximately HK$31.9 million for the corresponding period of the previous year. The Group recorded a loss of approximately HK$7.1 million for the three months ended 31 March 2014 compared to a profit of approximately HK$6.0 million for the same period last year. The decrease in both total income and profit is mainly contributed by the low volatility in the FX and commodity market during the three months ended 31 March 2014 compared to that during the three months ended 31 March 2013 and period-end translation of monetary assets denominated in foreign currency into the local reporting currency by KVBNZ, and specifically due to the depreciation of USD/NZD exchange rate from approximately as at 31 December 2013 to as at 31 March 財 務 業 績 24,300,000 31,900, % 7,100,000 6,000,000 KVBNZ Total expenses for the three months ended 31 March 2014 amounted to approximately HK$30.7 million, increased by around 30.8% as compare to the same period in Such increase is mainly due to the increase in fees and commission expenses which is in line with the trend of the increase in trading volume of the clients introduced by referral parties. Staff cost, marketing expenses were increased due to the recognition of staff share option expenses and payment to new marketing channels, including Baidu and Google advertising. 30,700, % 7

9 KVB KUNLUN FINANCIAL GROUP LIMITED 昆 侖 國 際 金 融 集 團 有 限 公 司 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 簡 明 綜 合 全 面 收 益 表 For the three months ended 31 March 2014 截 至 二 零 一 四 年 三 月 三 十 一 日 止 三 個 月 Unaudited 未 經 審 核 Three months ended 31 March 截 至 三 月 三 十 一 日 止 三 個 月 二 零 一 四 年 二 零 一 三 年 Note HK$ 000 HK$ 000 千 港 元 Leveraged foreign exchange and other trading income 19,328 24,273 Cash dealing income 3,974 2,853 Other income ,762 Total income 24,268 31,888 Fees and commission expenses 12,031 9,968 Staff costs 4 8,618 6,839 Depreciation and amortization Lease payments under land and buildings 1,525 1,611 Administrative and other operating expenses 5 7,872 4,408 Total expenses 30,677 23,462 Operating (loss)/profit (6,409) 8,426 Finance cost (1) (26) (Loss)/Profit before tax (6,410) 8,400 Income tax expense 6 (659) (2,424) (Loss)/Profit for the period (7,069) 5,976 The notes on pages 11 to 20 form part of these consolidated financial statements. 11 至 20 一 8

10 FIRST QUARTERLY REPORT 2014 二 零 一 四 年 第 一 季 度 報 告 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 簡 明 綜 合 全 面 收 益 表 For the three months ended 31 March 2014 截 至 二 零 一 四 年 三 月 三 十 一 日 止 三 個 月 Unaudited 未 經 審 核 Three months ended 31 March 截 至 三 月 三 十 一 日 止 三 個 月 二 零 一 四 年 二 零 一 三 年 Note HK$ 000 HK$ 000 千 港 元 Other comprehensive income 其 他 全 面 收 益 Item that may be reclassified to 至 profit or loss Currency translation difference 4,516 1,477 Other comprehensive income for the period, net of tax 4,516 1,477 Total comprehensive income for the period (2,553) 7,453 (Loss)/Earnings per share for (loss)/profit attributable to the equity holders of the Company for the period Basic and diluted (HK cents per share) 8 (0.35) 0.36 Dividends 7 The notes on pages 11 to 20 form part of these consolidated financial statements. 11 至 20 一 9

11 KVB KUNLUN FINANCIAL GROUP LIMITED 昆 侖 國 際 金 融 集 團 有 限 公 司 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 簡 明 綜 合 權 益 變 動 表 For the three months ended 31 March 2014 截 至 二 零 一 四 年 三 月 三 十 一 日 止 三 個 月 Share capital Share premium Capital reserve Unaudited 未 經 審 核 Share option reserve 股 本 股 份 溢 價 資 本 儲 備 購 股 權 儲 備 Currency translation reserve 貨 幣 Retained earnings Total equity 匯 兌 儲 備 保 留 盈 利 權 益 總 額 HK$ 000 HK$ 000 HK$ 000 HK$ 000 HK$ 000 HK$ 000 HK$ 000 千 港 元 千 港 元 千 港 元 千 港 元 千 港 元 千 港 元 千 港 元 At 1 January 2014 二 零 一 四 年 一 月 一 日 20, , ,892 4,883 18, ,099 Comprehensive income 全 面 收 益 Loss for the period (7,069) (7,069) Other comprehensive income for the period 4,516 4,516 20, , ,892 9,399 11, ,546 Share option scheme 1,156 1,156 Balance at 31 March 2014 於 二 零 一 四 年 三 月 三 十 一 日 結 餘 20, , ,892 1,156 9,399 11, ,702 At 1 January 2013 二 零 一 三 年 一 月 一 日 , ,892 6,647 (2,878) 232,752 Comprehensive income 全 面 收 益 Profit for the period 5,976 5,976 Other comprehensive income for the period 1,477 1,477 Balance at 31 March 2013 於 二 零 一 三 年 三 月 三 十 一 日 結 餘 , ,892 8,124 3, ,205 10

12 FIRST QUARTERLY REPORT 2014 二 零 一 四 年 第 一 季 度 報 告 NOTES TO THE FINANCIAL INFORMATION 財 務 資 料 附 註 1 CORPORATE INFORMATION AND REORGANISATION 1.1 General information The Company was incorporated in the Cayman Islands on 9 November 2010 as an exempted company with limited liability under the Companies Law, Cap. 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The address of its registered office is Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman, KY1-1111, Cayman Islands. 1 公 司 資 料 及 重 組 1.1 一 般 資 料 22 Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman, KY1-1111, Cayman Islands The Company s shares have been listed on the GEM of the Stock Exchange since 3 July The Company is an investment holding company and its subsidiaries are principally engaged in leveraged foreign exchange and other trading, cash dealing business, and other service. The financial information is presented in HK dollars ( HK$ ), unless otherwise stated. This financial information has not been audited. 1.2 Reorganisation In preparing for the listing of shares of the Company on the GEM of the Stock Exchange, the Company underwent a reorganisation, pursuant to which the group companies owned by the controlling shareholders were transferred to the Company ( Reorganisation ). The Reorganisation involved the following: 1.2 重 組 (a) On 9 November 2010, the Company was incorporated in the Cayman Islands by Codan Trust Company (Cayman) Limited. On the same date, 100% equity interest was transferred to Mr. Li Zhi Da ( Mr. Li ). (a) Codan Trust Company (Cayman) Limited 11

13 KVB KUNLUN FINANCIAL GROUP LIMITED 昆 侖 國 際 金 融 集 團 有 限 公 司 NOTES TO THE FINANCIAL INFORMATION 財 務 資 料 附 註 1 CORPORATE INFORMATION AND REORGANISATION (continued) 1.2 Reorganisation (continued) 1 公 司 資 料 及 重 組 1.2 重 組 (b) On 8 April 2011, LXL Capital I Limited ( LXL I ) was incorporated as a wholly owned subsidiary of the Company. (b) LXL Capital I Limited LXL I (c) On 8 April 2011, LXL Capital II Limited ( LXL II ), LXL Capital III Limited ( LXL III ) and LXL Capital IV Limited ( LXL IV ) were incorporated and each of them allotted and issued 100 nil-paid shares to LXL I. (c) LXL Capital II Limited LXL II LXL Capital III Limited LXL III LXL Capital IV Limited LXL IV 100 LXL I (d) On 4 May 2012, pursuant to a sale and purchase agreement: (d) (i) The entire issued share capital of the Company was transferred from Mr. Li to KVB Kunlun Holdings Limited ( KVB Holdings ) for a consideration of HK$1. (i) 1 KVB Kunlun Holdings Limited KVB Holdings (ii) The Company acquired the entire share capital of KVB Kunlun International (HK) Limited ( KVBHK ) from Mr. Li and the estate of late Ms Tsui Wang by crediting as fully paid at par the 100 nil-paid LXL IV shares allotted and issued to LXL I on 8 April 2011 (as mentioned in (c) above). (ii) LXL I 100 LXL IV (c) KVB 12

14 FIRST QUARTERLY REPORT 2014 二 零 一 四 年 第 一 季 度 報 告 NOTES TO THE FINANCIAL INFORMATION 財 務 資 料 附 註 1 CORPORATE INFORMATION AND REORGANISATION (continued) 1.2 Reorganisation (continued) 1 公 司 資 料 及 重 組 1.2 重 組 (iii) The Company acquired the entire share capital of KVB Kunlun New Zealand Limited ( KVBNZ ) from KVB Holdings by crediting as fully paid at par the 100 nil-paid LXL II shares allotted and issued to LXL I on 8 April 2011 (as mentioned in (c) above). (iii) LXL I 100 LXL II (c) KVB Holdings KVB Kunlun New Zealand Limited KVB (iv) The Company acquired the entire share capital of KVB Kunlun Pty Ltd ( KVBAU ) from KVB Holdings by crediting as fully paid at par the 100 nil-paid LXL III shares allotted and issued to LXL I on 8 April 2011 (as mentioned in (c) above). (iv) LXL I 100 LXL III (c) KVB Holdings KVB Kunlun Pty Ltd KVB Such transfers were completed by 7 May

15 KVB KUNLUN FINANCIAL GROUP LIMITED 昆 侖 國 際 金 融 集 團 有 限 公 司 NOTES TO THE FINANCIAL INFORMATION 財 務 資 料 附 註 2 Basis of presentation and preparation 2.1 Basis of presentation For the purpose of this report, the financial information of the Group has been prepared using the principles of merger accounting, as prescribed in Hong Kong Accounting Guideline 5 Merger Accounting for Common Control Combinations issued by the Hong Kong Institute of Certified Public Accountants ( HKICPA ). The condensed consolidated statements of comprehensive income and the condensed consolidated statements of changes in equity of the Group for the three-month ended 31 March 2014 have been prepared on a consolidated basis and include the financial information of the companies under the common control of the controlling shareholders and now comprising the Group as if the current group structure had been in existence throughout the year ended 31 December 2013 and three-month ended 31 March 呈 列 及 編 製 基 準 2.1 呈 列 基 準 5 14

16 FIRST QUARTERLY REPORT 2014 二 零 一 四 年 第 一 季 度 報 告 NOTES TO THE FINANCIAL INFORMATION 財 務 資 料 附 註 2 BASIS OF PRESENTATION AND PREPARATION (continued) 2.2 Basis of preparation The financial information for the three-month ended 31 March 2014 has been prepared in accordance with Hong Kong Financial Reporting Standards ( HKFRS ) (which include all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards and Interpretations) issued by the HKICPA and the applicable disclosure requirements of Chapter 18 of the GEM Listing Rules. The financial information should be read in conjunction with the Company s 2013 annual report, which has been prepared in accordance with HKFRS. 2 呈 列 及 編 製 基 準 2.2 編 製 基 準 18 The accounting policies applied are consistent with those adopted to prepare to the Company s 2013 annual report. Taxes on income in the reporting periods are accrued using the tax rate that would be applicable to expected total annual profit or loss. There are no other amended standards or interpretations that are effective for the first time for this three months period that could be expected to have a material impact on this Group. 15

17 KVB KUNLUN FINANCIAL GROUP LIMITED 昆 侖 國 際 金 融 集 團 有 限 公 司 NOTES TO THE FINANCIAL INFORMATION 財 務 資 料 附 註 3 Other income 3 其 他 收 入 Unaudited 未 經 審 核 Three months ended 31 March 截 至 三 月 三 十 一 日 止 三 個 月 二 零 一 四 年 HK$ 000 HK$ 000 千 港 元 Provision of management services Fees and commission income 4,079 4,644 Interest income Exchange losses, net (4,277) (1,234) Others ,762 4 Staff costs 4 員 工 成 本 Unaudited 未 經 審 核 Three months ended 31 March 截 至 三 月 三 十 一 日 止 三 個 月 二 零 一 四 年 HK$ 000 HK$ 000 千 港 元 Salaries and allowances 7,286 6,630 Pension scheme contributions Share option expenses 1,156-8,618 6,839 16

18 FIRST QUARTERLY REPORT 2014 二 零 一 四 年 第 一 季 度 報 告 NOTES TO THE FINANCIAL INFORMATION 財 務 資 料 附 註 5 Administrative and other operating expenses 5 行 政 及 其 他 經 營 開 支 Unaudited 未 經 審 核 Three months ended 31 March 截 至 三 月 三 十 一 日 止 三 個 月 二 零 一 四 年 HK$ 000 HK$ 000 千 港 元 Management fees paid to ultimate holding company Management fees paid to fellow subsidiaries 73 Other office occupation expenses Auditor s remuneration Information services expenses Professional and consultancy fee 1,430 1,088 Repair and maintenance (including system maintenance) Marketing, advertising and promotion expenses 2, Travelling expenses Entertainment expenses Others 1, ,872 4,408 17

19 KVB KUNLUN FINANCIAL GROUP LIMITED 昆 侖 國 際 金 融 集 團 有 限 公 司 NOTES TO THE FINANCIAL INFORMATION 財 務 資 料 附 註 6 Income tax expense Hong Kong profits tax has been provided at the rate of 16.5% on the estimated assessable profit in Hong Kong for each of the respective periods. Taxation on overseas profits has been calculated on the estimated assessable profit for the respective periods at the rates of taxation prevailing in the countries in which the Group operates. The income tax expenses of the Group are charged at a tax rate of 28% in New Zealand and 30% in Australia respectively in accordance with the local tax authorities. 6 所 得 稅 開 支 16.5% 28% 30% Unaudited 未 經 審 核 Three months ended 31 March 截 至 三 月 三 十 一 日 止 三 個 月 二 零 一 四 年 HK$ 000 HK$ 000 千 港 元 Current tax: Charge for the period 659 2,424 Income tax expense 659 2,424 7 Dividends A final dividend in respect of the year ended 31 December 2013 of HK$0.5 cents per ordinary share amounting to a total dividend of HK$10,000,000 was recommended at the Board of Directors meeting on 19 March These financial statements do not reflect this dividend payable. 7 股 息 ,000,000 The proposed final dividend for the year ended 31 December 2013 was approved by the Company s shareholders at the annual general meeting on 5 May

20 FIRST QUARTERLY REPORT 2014 二 零 一 四 年 第 一 季 度 報 告 NOTES TO THE FINANCIAL INFORMATION 財 務 資 料 附 註 8 (Loss)/Earnings per share 8 每 股 ( 虧 損 ) 盈 利 (a) Basic (loss)/earnings per share (a) 每 股 基 本 ( 虧 損 ) 盈 利 Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares deemed to be in issue during the respective periods. Unaudited 未 經 審 核 Three months ended 31 March 截 至 三 月 三 十 一 日 止 三 個 月 二 零 一 四 年 (Loss)/Profit attributable to equity holders of the Company (HK$ 000) (7,069) 5,976 Weighted average number of ordinary shares deemed to be in issue 2,000,000,000 1,656,655,000 Basic (loss)/earnings per share (HK$ cents) (0.35) 0.36 The basic earnings per share for three months ended 31 March 2013 as presented on the condensed consolidated statement of comprehensive income have taken into account the capitalisation of the sum of HK$16,466,550 standing to the credit of the share premium account of the Company for issue of 1,646,655,000 shares credited as fully paid at par to the holders of shares whose names appear on the register of members of the Company at the close of business on 2 June 2013 in proportion to their then existing respective shareholding. 16,466,550 1,646,655,000 19

21 KVB KUNLUN FINANCIAL GROUP LIMITED 昆 侖 國 際 金 融 集 團 有 限 公 司 NOTES TO THE FINANCIAL INFORMATION 財 務 資 料 附 註 8 (LOSS)/EARNINGS PER SHARE (continued) 8 每 股 ( 虧 損 ) 盈 利 (b) Diluted (loss)/earnings per share (b) 每 股 攤 薄 ( 虧 損 ) 盈 利 No diluted (loss)/earnings per share for the three months ended 31 March 2014 and 31 March 2013 are shown as the outstanding share options are anti-dilutive and have no dilutive effect. 9 Approval of financial information The financial information for the three months ended 31 March 2014 was approved and authorised for issue by the Board on 5 May 批 准 財 務 資 料 20

22 FIRST QUARTERLY REPORT 2014 二 零 一 四 年 第 一 季 度 報 告 OTHER INFORMATION 其 他 資 料 DIRECTORS AND CHIEF EXECUTIVE S INTERESTS IN SECURITIES 董 事 及 主 要 行 政 人 員 於 證 券 之 權 益 As at 31 March 2014, save as disclosed below, none of the Directors and chief executive has any interest or short position in the shares, underlying shares and debentures of the Company and its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance (the SFO ) which are required to be (i) notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which he is taken or deemed to have taken under such provisions of the SFO); or (ii) entered in the register kept by the Company pursuant to section 352 of the SFO; or (iii) notified to the Company and the Stock Exchange pursuant to Rules 5.46 to 5.67 of the GEM Listing Rules: XV (i) XV7 8 (ii) 352 (iii) Number of Percentage of Name of Director Nature of shares interested shares interested shareholding 董 事 姓 名 所 擁 有 股 份 之 性 質 擁 有 權 益 之 股 份 數 目 股 權 百 分 比 Mr. Li Zhi Da ( Mr. Li ) Interest in controlled corporation 1,500,000,000 (note) Note: These 1,500,000,000 shares are held by KVB Holdings. As Mr. Li is entitled to control over one-third of the voting power at general meetings of KVB Holdings, he is deemed under the SFO to be interested in these 1,500,000,000 shares held by KVB Holdings. 1,500,000,000KVB Holdings KVB Holdings KVB Holdings 1,500,000,000 21

23 KVB KUNLUN FINANCIAL GROUP LIMITED 昆 侖 國 際 金 融 集 團 有 限 公 司 OTHER INFORMATION 其 他 資 料 SUBSTANTIAL SHAREHOLDERS So far as is known to the Directors as at 31 March 2014, the following persons had an interest or short positions in the shares or underlying shares of the Company as recorded in the register required to be kept under section 336 of the SFO: 主 要 股 東 336 Number of Percentage of Name of shareholder Capacity shares held shareholding 股 東 姓 名 身 份 所 持 股 份 數 目 股 權 百 分 比 KVB Holdings (note 1) Beneficial owner 1,500,000, KVB Holdings 1 Calypso International Investment Co., Limited (note 2) Calypso International Investment Co., Limited 2 Beneficial owner 106,525, HNA Group (International) Company Limited (()) (formerly known as HNA Group International Headquarter (Hong Kong) Co., Limited ( ())) (note 2) 2 Interest in controlled corporation 106,525, HNA Group Co., Ltd. ( ) (note 2) 2 Interest in controlled corporation 106,525, Yangpu Jianyun Investment Co., Ltd. ( ) (note 2) 2 Interest in controlled corporation 106,525, Hainan Traffic Administration Holding Co., Ltd. ( ) (note 2) 2 Interest in controlled corporation 106,525, Shengtang Development (Yangpu) Co. Ltd. (()) (note 2) 2 Interest in controlled corporation 106,525,

24 FIRST QUARTERLY REPORT 2014 二 零 一 四 年 第 一 季 度 報 告 OTHER INFORMATION 其 他 資 料 Number of Percentage of Name of shareholder Capacity shares held shareholding 股 東 姓 名 身 份 所 持 股 份 數 目 股 權 百 分 比 Labour Union of Hainan Airlines Co., Ltd. ( ) (note 2) 2 Interest in controlled corporation 106,525, Notes: 1. Mr. Li, a non-executive Director, was entitled to control over onethird of the voting power at general meetings of KVB Holdings. 1. KVB Holdings 2. As confirmed by Calypso International Investment Co., Limited, as at 31 March 2014, Calypso International Investment Co., Limited was a wholly owned subsidiary of HNA Group (International) Company Limited ( ) (formerly known as HNA Group International Headquarter (Hong Kong) Co., Limited ( )), which was in turn owned as to 91.09% by HNA Group Co., Ltd. ( ). HNA Group Co., Ltd. was held as to 30% by Yangpu Jianyun Investment Co., Ltd. ( ) and 70% by Hainan Traffic Administration Holding Co., Ltd. ( ). Hainan Traffic Administration Holding Co., Ltd. was in turn held as to 50% by Shengtang Development (Yangpu) Co., Ltd. ( 2. Calypso International Investment Co., Limited Calypso International Investment Co., Limited 91.09% 30% 70% 50% 65% ). Shengtang Development (Yangpu) Co., Ltd. was held as to 65% by the Labour Union of Hainan Airlines Co., Ltd. (). Save as disclosed above, as at 31 March 2014, the Directors are not aware of any other person who has an interest or short position in the shares or underlying shares (including interest in options, if any) of the Company as recorded in the register required to be kept under section 336 of the SFO. 336 INTERESTS OF THE COMPLIANCE ADVISER AND ITS DIRECTORS, EMPLOYEES AND ASSOCIATES As confirmed by Quam Capital Limited, the compliance adviser of the Company, none of Quam Capital Limited and its directors, employees and associates is materially interested in any contract or arrangement during the period under review, which is significant in relation to the business of the Group. 合 規 顧 問 及 其 董 事 僱 員 及 聯 繫 人 士 之 權 益 23

25 KVB KUNLUN FINANCIAL GROUP LIMITED 昆 侖 國 際 金 融 集 團 有 限 公 司 OTHER INFORMATION 其 他 資 料 DIRECTORS COMPETING INTERESTS During the period under review, none of the Directors or their respective associates (as defined under the GEM Listing Rules) had any business or interest in a business which competes or may compete with the business of the Group. 董 事 的 競 爭 權 益 AUDIT COMMITTEE The Company has established an audit committee (the Audit Committee ) on 18 December 2012 with written terms of reference in compliance with the requirements as set out in Rule 5.28 of the GEM Listing Rules. The primary duties of the Audit Committee are to review and supervise the financial reporting process and internal control system of the Company, nominate and monitor external auditors and provide advice and comments to the Directors. 審 核 委 員 會 5.28 The Audit Committee comprises three independent non-executive Directors, namely, Mr. Lin Wenhui, Ms. Zhao Guixin and Mr. Cornelis Jacobus Keyser. Mr. Lin Wenhui is the chairman of the Audit Committee. Cornelis Jacobus Keyser The Audit Committee has reviewed the unaudited consolidated results of the Group for the three months ended 31 March 2014 and has provided advice and comments thereon. QUARTERLY DIVIDEND The Board does not recommend the payment of any dividend for the period under review (2013: Nil). 季 度 股 息 PURCHASE, SALE OR REDEMPTION OF THE COMPANY S LISTED SECURITIES During the period under review, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company s listed securities. 購 買 出 售 或 贖 回 本 公 司 之 上 市 證 券 By order of the Board KVB Kunlun Financial Group Limited Liu Stefan Executive Director 昆 侖 國 際 金 融 集 團 有 限 公 司 劉 欣 諾 Hong Kong, 5 May

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