Advertisement
Convoy reports three years of financial losses as it seeks to move beyond scandal
- Biggest adviser to Mandatory Provident Fund has failed to report financial results since 2017
- Resumption of financial reporting could boost efforts to maintain Hong Kong listing
Reading Time:3 minutes
Why you can trust SCMP
1
Convoy Group Holdings, the financial services company at the centre of Hong Kong’s biggest corporate scandal, reported it made annual losses in 2017, 2018 and 2019 on Thursday as costs mounted from ring-fencing a group of troubled subsidiaries.
Advertisement
The firm, one of the most prominent advisers to Hong Kong’s pension savings scheme, warned on February 3 that it would report net losses for those years primarily due to de-risking and restructuring its operations following a scandal that saw its former director Roy Cho Kwai-chee and two associates criminally charged.
The trio was prosecuted and acquitted in November 2020 of conspiring to defraud HK$89 million (US$11.5 million) from Convoy, but the Independent Commission Against Corruption (ICAC) is appealing the decision.
Since December 2017, the new management team has been working on “the total revamp of corporate organisation, re-strategising the company’s long-term business vision, and strengthening corporate governance and control of the company,” Convoy said in one of a series of stock exchange filings on Thursday.
Advertisement
Convoy reported net losses of HK$1.44 billion in 2017, HK$617.8 million in 2018 and HK$540.4 million in 2019.
Advertisement