[Caihua News] Xinhua Huifu Finance (00188-HK) announced a loss of 32.821 million yuan for the year ended June 30, 2019 (a profit of 20.401 million yuan for the same period in 2018), or 0.47 cents per share. The total revenue was 171 million yuan, a year-on-year decrease of 6.04%. It is recommended to pay a final dividend of 0.25 cents per share.

On December 1, 2016, the Group entered into a joint venture agreement with a number of joint venture partners to establish a joint venture company in Chongqing, China. Subject to the final approval of the China Securities Regulatory Commission, it is proposed that the joint venture company will become a fully licensed securities company, mainly engaged in the provision of regulated securities brokerage, securities underwriting and recommendation, securities self-management, securities asset management and other businesses approved by the CSRC. According to the joint venture agreement, the group will contribute 330 million yuan to the joint venture company, accounting for a 22% stake in the joint venture company. The joint venture company received a letter of confirmation of the application from the CSRC on December 28, 2018. The Group received a list of required documents from the CSRC through the joint venture in June 2019 and is now providing more and updated information. If the CSRC approves the application, the group expects the funds needed for the transaction to be fully funded by the group's internal resources. The group may sell some listed shares and debt securities and recover some of the loans receivable to cover the investment costs of the joint venture. The performance of brokers and lending and proprietary investment sectors will be most likely to be affected.

Geopolitical tensions and trade negotiations between the United States and China, the world's two largest economic powers, continue to affect market sentiment. Although there is still debate about whether this is the beginning of another quantitative broad cycle, the United States and Europe have cut their policy interest rates. Hong Kong's economy has been affected by recent social events, resulting in a number of economic sectors being hit. The Group expects that the company's market activity will slow down and management will continue to adopt a low debt ratio policy to deal with this financial difficult time.