The latest: Financial services firm China Renaissance Holdings Ltd. (1911.HK) on Tuesday reported its revenue dropped 42.4% to 604 million yuan ($87.5 million) in the first half of the year,  as it swung into the red with a net loss of 154 million yuan.

Looking up: The company’s operating expenses decreased 44.4% to 586 million yuan in the period, outpacing its revenue decline, thanks to a roughly 50% cut in its compensation and benefits expenses to 380 million yuan and lower financing costs.

Take Note: China Renaissance said the first half of the year was a tough time for New York and Hong Kong IPOs that are one of its main business areas, as well as for private financing deals, which were at their lowest level since 2017. That lost business was the main factor behind the sharp revenue drop.

Digging Deeper: Founded in 2005, China Renaissance has developed over the past decade into a leading Chinese financial services company and was listed on the Hong Kong Stock Exchange in 2018. The recent crackdown on U.S.-listed Chinese stocks by regulators on both sides of the Pacific has caused the number of IPOs by Chinese companies in the U.S. to drop significantly, eating into one of the company’s main revenue sources. Its investment income also decreased due to volatility in global stock markets. To tide itself through the difficult times, the company said it will continue to develop its asset management business, including fee-generating services, and further move into new economy areas such as technology, new energy, and advanced manufacturing.

Market Reaction: China Renaissance shares fell 2.8% in early trading on Wednesday, but later pared those losses and were up 0.5% at HK$8.93 at the midday break, close to their 52-week low.

Translation by Jony Ho

To subscribe to Bamboo Works free weekly newsletter, click here

Recent Articles

So-Young dolls up with move to high-end cosmetic surgery

So-Young dolls up with pivot to high-end services

The cosmetic services social media platform is developing its own clinics as well as a premium platform for high-end users Key Takeaways: So-Young reported an annual profit last year, reversing…

NEWS WRAP: Nayuki pours up first annual profit

The premium tea chain aims to expand through franchising to boost its growth amid intense competition  By Teri Yu  Premium tea seller Nayuki Holdings Ltd. (2150.HK) on Wednesday reported its first annual profit since…
Buoyed by bumper earnings, the biotech has announced a share placement to raise HK$1.17 billion to invest in developing its portfolio of anti-cancer drugs.

Akeso marks profit milestone with swift rights issue

Buoyed by bumper earnings, the biotech has announced a share placement to raise HK$1.17 billion to invest in developing its portfolio of anti-cancer drugs Key Takeaways: Akeso swung to an…