We are pleased to present the annual report of Finansia Syrus Securities Public Company Limited ("Finansia") for the fiscal year ended 31 December 2018 ("FY2018").COMPANY'S FINANCIAL PERFORMANCE
During FY2018, we continued to make progress on our strategy to undergo Transformation by i) increasing online brokerage market share by introducing an advanced new online trading platform for the Thai equity market, ii) increase our capabilities in institutions segment and iii) building up a wealth management operation. These achievements were made through substantial investments and reorganization of systems, process, people and technology despite facing a challenging FY2018 due to the slackening economy and market conditions.
A sluggish market resulted in the Company's total revenue for FY2018 to drop from Baht 1,655 million in FY2017 to Baht 1,463 million mainly due to a decline in retail investors trading activities, which resulted in a 4% decrease in average commission rate and also a 9% decrease in trading volume. The combination of lower revenue and heavy investments during the year resulted in the Company posting a net loss after tax of Baht 24 million in FY2018 compared to a net profit after tax of Baht 177 million for FY2017. Most of the investments costs were associated with the launching of Finansia HERO application and the E-business operations as well as augmenting the institutional department.
As at December 31, 2018, there was no outstanding bank borrowing and the Company's total cash and cash equivalents remained in a healthy condition at Baht 377 million as at December 31, 2018, compared to Baht 141 million as at December 31, 2017.STRATEGIC DISPOSALS
As at April 27, 2018, the Company completed the disposal process of the investment in SBI Thai Online Securities Company Limited by exercising option to sell the remaining shares according to the resolution of the Board of Directors’ Meeting, at the total amount of 1,645,554 shares, at the price of 71.49 Baht per share, with the total disposed value of Baht 118 million.OUR MARKETS AND CAPABILITIES
Finansia is a leading brokerage company with emphasis on retail investors, but also established a growing institutional client base. Our customer base comprises of more than 65,000 accounts from both retail and institutional clients, with our key Investment Consultant (IC) totaling 465 officers and over 30 branches.
As from the previous years, we have made significant progress in growing up an E-Business platform through partnership with Kiwoom Securities by developing Finansia HERO, our new trading application for Thai Equity Market. The Application is state of art and is considered the most advanced trading tool available in Thailand. At the same time, our Derivative Warrants business continues to attract a growing number of investors. However, due to a sluggish market, our Investment Banking only lead underwrote 2 issues last year. We also continue to streamline our operational processes through automation and cost reduction.
Finansia also maintains a strong institutional research coverage through its subsidiary, FSS International Investment Advisory Securities Company (“FSSIA”) in cooperation with BNP Paribas Asia Securities.LOOKING FORWARD
For the year ahead, the Company will remain focused in transforming its core businesses from traditional brokerage model to strengthen its online emphasis and a wider business range to create stronger sustainability in an ever increasing competitive environment. Being one of the few leading brokers without a banking parent; the Company will also continue to form strategic alliances with overseas partners in various fields particularly in technology, research, and wealth management. The Company will also continue to streamline its operations and scale down non-profitable areas.APPRECIATION
The past year has been a difficult period for the Company, and bottom line results can obscure the real underlying progresses that are being made. We would therefore like to thank the Board, the management team and all our staff for the efforts they are making. We believe that with stronger efforts from all parties, our endeavors to transforms Finansia into a stronger and sustainable Investment Bank will start to take form during 2019. Finally, we would also like to thank all our customers, business associates and shareholders for their staunch support. We look forward to journeying with you as we continue to deliver innovation, growth and value to shareholders.
Mr. Chatchaval Jiaravanon