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Celestial Asia Securities Holdings (CASH) hopes to develop into a cross-sector service conglomerate in three years, according to chairman Bankee Kwan Pak-hoo.

Mr Kwan said yesterday the company was planning to expand its business through merger and acquisition activities.

'We hope to use the CASH brand to explore other industries, and increase our revenue with a business model that targets the [masses],' he said.

Last month, the Hong Kong-listed financial services group announced it would acquire a 69.21 stake in household goods retailer Pricerite by issuing 507 million new shares at 30 HK cents each.

According to Mr Kwan, Pricerite could complement CASH's business with its established clientele and distribution channels.

'In the next three years we will look for partners similar to Pricerite which can provide synergy to our existing business,' he said.

CASH's attributable profit in the year to December 31 rose 9.49 per cent from a year earlier to HK$101.77 million.

Turnover increased 93 per cent to HK$473 million, of which 59 per cent came from the securities brokerage business.

However, online operation CASH On-line saw its net loss increase 8.41 times to HK$156.89 million, on turnover of HK$43.86 million.

The company attributed the loss to heavy promotional expenses.

At present, CASH has 48,000 customers, of which 18,000 come from the online business.

Only 10 per cent of the group's revenue is generated from CASH On-line.

Mr Kwan said while advertising and promotional expenses amounted to HK$98 million last year, they would be cut to HK$20 million this year.

'We plan to spend HK$10 million on CASH, and the other HK$10 million on the online business,' he said.

While CASH would actively look for acquisition targets in the next few years, Mr Kwan said financial services would remain the core business of the group.



CASH envisages move into services