下午好女士先生們我請代表新鋒基有效公司歡迎各位出席公司2023年年度業績投資者網上會議本次會議將以普通話進行各位投資者的麥克風設置為靜音演講結束後監視將有問答環節現在我為大家介紹今天主講的公司管理層 集團投資者關係副總裁張前女士Shirley在今天的會議上Shirley會將向各位投資者介紹公司2023年年度業績表現以及公司2024年的展望和發展計劃業績簡解結束後Shirley將回答各位的問題今天的討論包括前瞻性陳述並涉及集團無法控制的假設和因素 相關的陳述不一定代表公司集團未來的表現也不構成對未來表現的保證首先有請Shirley為大家簡簡業績好謝謝大家下午好我們的業務核心業務圍繞三大板塊展開信貸投資管理和基金管理2023年我們將融資業務更名為信貸業務以更準確的體現該板塊所提供的產品和服務 我们通过亚洲联合财务和新鸿基信贷开展信贷业务为我们提供稳定具有韧性的现金流我们的投资管理业务部门凭借集团的专业知识和全球网络在多元化的资产类别行业和地区中寻找具有吸引力的经风险调整的投资回报机会我们的基金管理业务拥有全面的监管牌照 可以通過包括基金合作夥伴西蒙基Capital Partners自有基金以及家族辦公室解決方案來 ...

Financial Performance - The company reported a significant improvement in shareholder losses for 2023, amounting to HKD 471.4 million, compared to a loss of HKD 1,534.8 million in the previous year, primarily due to reduced investment management losses [4]. - The company's consumer finance business achieved a pre-tax profit of HKD 979.5 million in 2023, down from HKD 1,197.1 million in 2022, impacted by rising interbank rates [5]. - The group reported total revenue of HKD 3,998.4 million for the year ended December 31, 2023, a decrease of 3.7% from HKD 4,153.6 million in 2022 [12]. - Interest income was HKD 3,764.4 million, down from HKD 3,932.0 million in the previous year, reflecting a decline of 4.3% [12]. - The net loss for the year was HKD 201.3 million, significantly improved from a net loss of HKD 1,176.9 million in 2022 [12]. - Basic loss per share was HKD 24.1, compared to HKD 78.2 in the previous year, indicating a reduction in losses [12]. - The group reported a profit before tax of HKD 76.6 million, a significant improvement from a loss of HKD 892.3 million in 2022 [50]. - The loss attributable to shareholders was HKD 471.4 million, down 69.3% from HKD 1,534.8 million in the previous year [50]. - The basic loss per share improved to HKD 0.241 from HKD 0.782 in 2022, reflecting a 69.2% reduction [49]. Asset Management - The asset management scale reached nearly USD 1 billion by year-end, with net inflows exceeding USD 150 million during the year [2]. - The company’s fund management business, SHKCP, saw a 24.3% year-on-year increase in fee income, supported by a diversified strategy [6]. - The company’s family office solutions have shown encouraging development, leveraging extensive relationships built over 55 years of operation [2]. - The asset management scale of the company's funds and partners totaled USD 964 million at year-end, a decrease of 1.1% from 2022, mainly due to the full redemption of certain funds [96]. - External capital accounted for 62.8% of the total asset management scale, an increase of 16.3 percentage points year-over-year [105]. Dividends and Shareholder Returns - The company maintained a dividend of HKD 0.26 per share for 2023, consistent with the previous year, despite a challenging fundraising environment [4]. - The total dividend declared for 2023 was HKD 511.1 million, slightly down from HKD 512.1 million in 2022 [36]. - The company repurchased a total of 2,203,000 shares during the year ended December 31, 2023, at a total cost of HKD 5,897,190 [136]. Operational Efficiency - The company will continue to invest in upgrading risk management systems and technology infrastructure to enhance operational efficiency [10]. - The company’s management expenses decreased to HKD (1,116.1) million in 2023 from HKD (1,159.6) million in 2022, reflecting cost control measures [33]. - Operating costs decreased by 6.1% to HKD 1,467.8 million from HKD 1,563.3 million in the previous year, reflecting cost rationalization efforts [53]. - The operating costs for the investment management segment in 2023 amounted to HKD 959.3 million, a 15.9% increase compared to the previous year, mainly driven by performance-related expenses [72]. Market Challenges - The real estate market in Hong Kong faced significant challenges, with pre-tax contributions from mortgage lending dropping to HKD 65.7 million from HKD 122.3 million in 2022 [6]. - The company plans to maintain a cautious approach in 2024 due to ongoing geopolitical tensions and rising financing costs [10]. - The company anticipates that 2024 will remain challenging due to high interest rates and structural changes in the Chinese economy, maintaining a cautious investment approach [109]. ESG and Governance - The group's ESG risk rating improved from 29.2 in 2022 to 24.5 in 2023, reflecting progress in enhancing ESG standards [8]. - The board has established a dedicated ESG committee to lead the company's efforts in integrating ESG principles into its business strategy [8]. - The company has complied with the corporate governance code principles, with some deviations noted in the annual report [131]. - The company’s governance structure separates the roles of the chairman and the CEO, enhancing internal communication and decision-making processes [132]. Loans and Financing - The total amount of overdue consumer finance customer loans and advances (net of impairment provisions) was HKD 10,627.2 million as of December 31, 2023, compared to HKD 11,025.9 million in 2022 [38]. - The company reported a significant reduction in the number of overdue mortgage loans, with overdue loans less than 31 days at HKD 707.9 million in 2023, compared to HKD 705.0 million in 2022 [40]. - The financing costs increased by 45.3% to HKD 504.7 million due to rising interbank rates [59]. Future Outlook - The company plans to streamline and focus its operations, improve workflows, upgrade technology infrastructure, and invest in talent in 2024 [110]. - The company aims to enhance its service platform and innovate product offerings while protecting capital and solidifying future growth foundations [109]. - The company plans to continue evaluating new opportunities in artificial intelligence, private credit, and secondary markets while maintaining strict standards for cash flow and valuation [85].

Financial Performance - For the first half of 2023, the company's revenue was HKD 1,968.3 million, a decrease of 4.3% compared to HKD 2,056.1 million in the same period of 2022[6]. - The company reported a pre-tax profit of HKD 36.5 million, a significant improvement from a loss of HKD 55.1 million in the previous year[9]. - The loss attributable to shareholders for the first half of 2023 was HKD 287.5 million, down 28.3% from HKD 401.2 million in the same period of 2022[8]. - Revenue for the first half of 2023 decreased by 7.4% to HKD 1,628.6 million compared to HKD 1,759.3 million in the same period of 2022[12]. - The company recorded a foreign exchange loss of HKD 12.3 million, a decrease of 51.2% compared to HKD 25.2 million in the previous year[12]. - The company reported a net loss of HKD 196.8 million in the public market, primarily due to valuation adjustments from strategic holdings in China and US hedging tools[28]. - The company reported a net loss of $130.8 million for the six months ended June 30, 2023, compared to a net loss of $200.7 million for the same period in 2022, indicating an improvement[92]. - The company reported a loss of HKD 401.2 million during the period, contributing to a total comprehensive loss of HKD 694.3 million[95]. Dividends and Share Repurchase - The company maintained an interim dividend of HKD 0.12 per share, consistent with the previous year[7]. - The company declared an interim dividend of HKD 0.12 per share for the six months ending June 30, 2023, consistent with the previous year[82]. - During the six-month period ending June 30, 2023, the company repurchased a total of 770,000 shares at a total cost of HKD 2,307,290, all of which were subsequently cancelled[85]. - The company repurchased shares worth HKD 2.4 million during the period, compared to HKD 3.1 million in the same period last year[142]. Operating Costs and Efficiency - Operating costs decreased by 8.0% to HKD 686.5 million, primarily due to reduced loan recovery costs in the consumer finance segment[10]. - Operating costs reduced by 18.4% to HKD 532.9 million, attributed to decreased loan recovery costs and cost rationalization measures[12]. - Operating expenses decreased by 39.3% year-on-year, from HKD 20.6 million in 2022 to HKD 12.5 million in 2023[61]. - The company incurred financing costs of $486.3 million, an increase from $426.7 million in the same period last year[92]. Debt and Capital Structure - The net debt-to-equity ratio improved from 43.7% at the end of 2022 to 37.2% as of June 30, 2023, reflecting enhanced capital efficiency[7]. - The company's total borrowings as of June 30, 2023, amounted to HKD 14,749.3 million, down 5.8% from HKD 15,650.0 million at the end of 2022[65]. - The interest coverage ratio surged to 1.07 from 0.02 in the previous year, reflecting improved profitability[64]. - The total amount of notes payable as of June 30, 2023, was HKD 6,274.2 million, down from HKD 6,664.8 million as of December 31, 2022, indicating a decrease of approximately 6%[142]. Investment Management - The investment management segment recorded a pre-tax loss of HKD 832.9 million, an improvement from a loss of HKD 935.8 million in the previous year, affected by weak market sentiment in mainland China[11]. - The overall investment management return rate for the first half of 2023 was -2.3%, with public market and alternative investment return rates at -7.4% and -2.5%, respectively[30]. - The alternative investments and real estate segment saw unrealized losses significantly reduced from HKD 1,020.8 million to HKD 99.5 million, a decrease of 90.3%[28]. - The company plans to enhance risk management systems and infrastructure to build a leading alternative investment platform[29]. Loan and Mortgage Performance - The net loan balance decreased by 9.4% to HKD 10,635.0 million, while total loan balance decreased by 9.3% to HKD 11,176.4 million[12]. - The overdue loan balance as of June 30, 2023, was HKD 867.8 million, representing 8.2% of total loans, down from HKD 968.8 million in December 2022[15]. - The total loan balance in the mortgage segment was HKD 2,705.7 million, with first mortgages accounting for over 90%[21]. - Mortgage loans in Hong Kong decreased to HKD 2,705.7 million as of June 30, 2023, down from HKD 3,107.5 million at December 31, 2022, a decline of 12.91%[128]. Employee and Corporate Governance - As of June 30, 2023, the total number of employees in the group was 1,235, a decrease from 1,608 employees as of December 31, 2022[67]. - Total employee costs amounted to HKD 284.7 million for the first half of 2023, down from HKD 248.1 million in the same period of 2022, primarily due to a reduction in workforce[67]. - The group believes that competitive employee benefits are essential for sustainable business development and retention of an efficient team[67]. - The company has maintained compliance with the corporate governance code, with specific deviations noted in the remuneration and audit committees[78][79]. Market Outlook and Strategy - The outlook for the second half of 2023 remains uncertain due to global economic risks and geopolitical tensions, prompting a cautious approach to capital allocation[63]. - The company plans to focus on mortgage products in mainland China, reducing its unsecured personal loan business[12]. - The company continues to seek partnership opportunities to create a broader and more diversified platform amid challenging investment conditions[62]. - The company’s management expects continued focus on market expansion and new product development in the upcoming periods[1].

[3 -> 32] 下午好,女士們先生們我謹代表新鴻基有限公司歡迎各位出席公司2023年創辦人業績投資者晚上會議本次會議將以普通話進行各位投資者的麥克風設置為靜音演講結束後將有問答環節現在我為大家介紹今天公司的管理層集團投資者關係副總裁張前女士Shirley [33 -> 62] 在今天的会议上宣理将会向各位投资者介绍公司2023年上半年业绩表现以及下半年的展望和发展计划简解结束后宣理将回答各位的问题今天的讨论包括前瞻性陈述并涉及集团无法控制的假设和因素相关的陈述不一定代表集团未来的表现也不构成跟未来表现的保证 [63 -> 91] 首先我们有请Sherry为大家讲讲业绩好的,谢谢各位投资者,大家下午好首先看一下我们主要的核心业务分布我们的核心业务围绕三大板块展开包括融资、投资管理和基金管理业务我们通过亚洲联合财务西红柿信贷和私募融资开展贷款业务为我们提供稳定和具有韧性的资金流 [92 -> 118] 我們的投資管理業務充分利用集團的業務專長外部的關係網絡和雄厚的資本實力在多元化的資產類別、行業和地區中尋找具有吸引力的風險調整回報我們的基金管理業務持有管理外部資本的監管牌照包括通過新推出的家族辦公室解決方案和 ...

Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 2,014.8 million, a decrease of 2.9% from HKD 2,074.6 million in the same period of 2022[2] - Interest income decreased to HKD 1,890.0 million, down 5.1% from HKD 1,991.0 million year-on-year[2] - The company reported a net loss of HKD 130.8 million for the period, an improvement from a net loss of HKD 200.7 million in the previous year[3] - Basic and diluted loss per share was HKD 14.7, compared to HKD 20.5 for the same period last year[3] - Total comprehensive loss for the period amounted to HKD 307.7 million, significantly reduced from HKD 694.3 million in the prior year[4] - The profit before tax for the group was HKD 36.5 million, a significant decline from a loss of HKD 55.1 million in the previous year[15] - The group reported a loss of HKD 310.8 million in impairment losses on financial assets, compared to a loss of HKD 312.5 million in the previous year[15] - The financing business contributed a pre-tax profit of HKD 586.7 million, down 18.3% from HKD 718.4 million in the first half of 2022[36] - The investment management segment recorded a pre-tax loss of HKD 832.9 million, an improvement from a loss of HKD 935.8 million in the same period last year[36] Assets and Liabilities - Non-current assets increased to HKD 20,612.0 million from HKD 22,258.8 million at the end of 2022[5] - The company's cash and cash equivalents rose to HKD 6,633.2 million, up from HKD 5,727.4 million at the end of 2022[5] - As of June 30, 2023, the company's current liabilities totaled HKD 8,091.2 million, an increase of 18.1% from HKD 6,849.9 million as of December 31, 2022[6] - The company's total assets minus current liabilities decreased to HKD 33,275.4 million from HKD 36,064.8 million, reflecting a decline of 7.7%[6] - The equity attributable to shareholders decreased to HKD 21,674.2 million, down 3.1% from HKD 22,358.1 million[6] - Non-current liabilities decreased to HKD 8,303.7 million from HKD 10,508.7 million, a reduction of 21.0%[6] - The company's total borrowings (current and non-current) amounted to HKD 8,475.1 million, a decrease of 14.5% from HKD 9,083.2 million[6] Revenue Breakdown - The segment revenue from consumer finance was HKD 1,628.6 million, down 7.4% from HKD 1,759.1 million year-on-year[15] - Revenue from external customers in Hong Kong was HKD 1,682.4 million, while revenue from mainland China was HKD 285.9 million, totaling HKD 1,968.3 million[17] - Total revenue for the first half of 2023 was HKD 29.7 million, a 125.0% increase compared to HKD 13.2 million in the same period of 2022[82] Impairment and Loan Performance - The net impairment loss for consumer finance customer loans and advances decreased to HKD 417.5 million for the six months ended June 30, 2023, compared to HKD 425.1 million for the same period in 2022, reflecting a reduction of approximately 1.5%[20] - The overdue consumer finance customer loans and advances totaled HKD 867.8 million as of June 30, 2023, down from HKD 968.8 million at the end of 2022, indicating a decrease of about 10.4%[26] - The mortgage loans in Hong Kong, net of impairment provisions, were HKD 2,669.9 million as of June 30, 2023, compared to HKD 3,063.9 million as of December 31, 2022, a decline of approximately 12.9%[27] - The total amount of term loans, net of impairment provisions, was HKD 268.3 million as of June 30, 2023, down from HKD 337.5 million at the end of 2022, reflecting a decrease of about 20.5%[28] Cost Management - Operating costs decreased by 8.0% to HKD 686.5 million, reflecting reduced loan recovery costs in the consumer finance segment[35] - Operating costs decreased by 18.4% year-on-year to HKD 532.9 million, attributed to reduced loan recovery costs and cost rationalization measures[38] - The company initiated a comprehensive cost rationalization program expected to be completed by year-end 2023[45] Dividends and Share Repurchase - The total dividend declared for the period was HKD 275.4 million, consistent with the previous year's second interim dividend of HKD 276.3 million[23] - The group announced an interim dividend of HKD 0.12 per share for the six months ended June 30, 2023, consistent with the previous year[95] - The group repurchased a total of 770,000 shares on the Stock Exchange during the six months ended June 30, 2023, at a total cost of HKD 2,307,290[101] Market Outlook and Strategy - The outlook for the second half of 2023 remains uncertain due to global economic risks and geopolitical tensions, prompting a cautious approach to capital allocation[84] - The company is focusing on diversifying its fund management business to enhance resilience and is prioritizing investments in family office solutions[83] - The company plans to enhance risk management systems and infrastructure to strengthen its investment management capabilities[53] Employee and Operational Changes - The group's total employee count decreased to 1,235 as of June 30, 2023, down from 1,608 on December 31, 2022, primarily due to a reduction in unsecured loan operations in mainland China[93] - Total employee costs amounted to HKD 284.7 million for the first half of 2023, compared to HKD 248.1 million in the same period of 2022, reflecting performance-linked benefits changes[93] - The group has implemented competitive benefits to attract and retain talent, including optimized medical and dental benefits and an innovative unlimited vacation policy[94]

Financial Performance - In 2022, the company reported a loss attributable to shareholders of HKD 1,534.8 million, compared to a profit of HKD 2,813.7 million in 2021, resulting in a basic loss per share of HKD 78.2, down from a profit of HKD 142.7[17]. - Revenue declined by 6.2% to HKD 4,054.1 million[27]. - The company's asset management scale increased from USD 809 million at the end of 2021 to USD 975 million at the end of 2022, driven by the performance of the ActusRayPartners European Alpha Fund[19]. - The company recorded a pre-tax profit of HKD 1,197.1 million from consumer finance, despite a 28.1% decrease compared to the record performance in 2021[17]. - The company reported a loss attributable to shareholders of HKD 1,534.8 million in 2022, compared to a profit of HKD 2,813.7 million in 2021[32]. - Basic loss per share for 2022 was HKD 78.2 cents, down from earnings of HKD 142.7 cents per share in 2021[32]. - The pre-tax loss for the year was HKD 892.3 million, significantly down from a profit of HKD 3,773.2 million in 2021[33]. - The group's pre-tax contribution for 2022 was HKD 1,197.1 million, a decrease of 28.1% from the record HKD 1,665.4 million in 2021[36]. - The company's revenue for 2022 was HKD 4,054.1 million, a decrease of 6.2% from HKD 4,324.0 million in 2021[31]. Asset Management and Investment - The company established its fund management platform, SHK Capital Partners, in 2021, holding licenses from the Hong Kong Securities and Futures Commission[6]. - The investment management division was launched in 2015, focusing on public markets, alternative investments, and real estate[11]. - The fund management business is expected to become a new growth driver, promoting revenue and asset management scale[14]. - The company has initiated eight partnerships/funds since 2021, covering various strategies[14]. - The alternative investments and real estate generated an unrealized loss of HKD 1,865.9 million in 2022, partially offset by realized gains of HKD 400.8 million[51]. - The investment management segment recorded a pre-tax loss of HKD 2,403.8 million, compared to a profit of HKD 1,917.8 million in 2021[34]. - The public market investment portfolio had a year-end value of HKD 2,310.3 million, with an average value of HKD 2,860.0 million and a loss of HKD 174.9 million[55]. - The company aims to enhance risk management systems and improve infrastructure to achieve its vision of becoming a leading alternative investment platform[51]. Consumer Finance - The consumer finance segment, through Asia United Finance, is a leader in the personal loan market in Hong Kong and mainland China[9]. - The mortgage loan business contributed a pre-tax profit of HKD 122.3 million, marking a historical high since its establishment in 2015[43]. - The group's consumer finance business, operated through Asia United Finance, ranked first among all lenders in Hong Kong for unsecured loan outstanding balances for five consecutive years[36]. - The total loan balance decreased by 8.3% to HKD 11,630.3 million, while the net loan balance fell by 8.5% to HKD 11,025.9 million[35]. - New loans issued during the year amounted to HKD 11,968.2 million, down 1.7% from HKD 12,177.3 million in 2021[41]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, emphasizing integrity, transparency, accountability, and fairness[120]. - The board has established various committees, including a nomination committee, to ensure effective governance and oversight of company operations[121]. - The company has adopted a remuneration policy that aligns with the corporate governance code, with deviations explained in the report[125]. - The board's governance responsibilities include reviewing compliance with legal and regulatory requirements, as well as monitoring the training and development of directors and senior management[120]. - The company has implemented a governance structure that separates the roles of the chairman and CEO, enhancing internal communication and decision-making processes[115]. Risk Management - The risk management framework is based on a "three lines of defense" model, involving the board, risk committee, and management team[95]. - The company has established a strong credit management policy to mitigate credit risk, particularly in the consumer finance and mortgage sectors[100]. - The risk management committee held seven meetings in 2022 to review and recommend approval of various policies, including ESG principles and climate change policies[132]. - The group has mechanisms in place to continuously monitor risks, including environmental, social, and governance risks[130]. - The company is actively addressing climate-related risks and plans to establish metrics for measuring these risks by 2023[174]. Sustainability and ESG Initiatives - The company emphasizes its commitment to sustainable development, aligning its policies with the United Nations Sustainable Development Goals (UNSDGs)[154]. - The report includes key performance indicators (KPIs) related to environmental and social aspects, ensuring consistency with previous years' calculations[147]. - The company has set a target to ensure that 30% of its investment portfolio considers ESG factors by 2024, which has already been achieved[160]. - The company plans to reduce absolute paper usage by 15% compared to the fiscal year 2019 baseline by 2025, currently in practice[160]. - The company has engaged stakeholders to understand their satisfaction and expectations, which is crucial for continuous improvement[164]. Shareholder Returns and Dividends - The board declared a second interim dividend of HKD 0.14 per share, maintaining the same level as the previous year, with a total dividend of HKD 0.26 per share for 2022[16]. - The company has returned a total of HKD 13.4 billion to shareholders through dividends and share buybacks since 2007[25]. - The company maintained a dividend per share of HKD 26.0, down 13.3%[27]. - The company will continue to maintain diverse financing channels and strong liquidity to support future business growth[83]. Employee and Workplace Initiatives - The group offers comprehensive benefits to employees in Hong Kong, including unlimited paid leave, insurance, and healthcare benefits[190]. - The company has a dedicated team monitoring occupational health and safety risks in the office environment[194]. - The company has enhanced communication with employees to understand their needs and improve workplace conditions[197]. - The group emphasizes a flexible work policy to enhance employee well-being and productivity[191]. - The company conducted over 5 major health promotion activities, including high-intensity interval training and monthly social events, to enhance employee well-being[197].

Financial Performance - The company reported a loss attributable to shareholders of HKD 1,534.8 million for 2022, compared to a profit of HKD 2,813.7 million in the previous year, resulting in a basic loss per share of HKD 0.782[3]. - The group reported a total revenue of HKD 4,153.6 million for the year ended December 31, 2022, a decrease of 6.4% compared to HKD 4,435.8 million in 2021[11]. - Total revenue for the year ended December 31, 2022, was HKD 4,162.7 million, a decrease from HKD 4,271.3 million in 2021, representing a decline of approximately 2.5%[19]. - The net loss attributable to shareholders for the year was HKD 1,534.8 million, compared to a profit of HKD 2,813.7 million in the previous year, reflecting a significant decline[11]. - Basic loss per share was HKD 78.2 cents, down from earnings of HKD 142.7 cents per share in 2021[11]. - Total comprehensive loss for the year amounted to HKD 1,948.3 million, compared to a comprehensive income of HKD 3,590.3 million in 2021[12]. - The company reported a pre-tax loss of HKD 892.3 million for the year, compared to a profit in the previous year[19]. - The company recorded a pre-tax loss of HKD 892.3 million in 2022, down from a profit of HKD 3,773.2 million in 2021, largely due to losses in investment management[48]. Revenue and Business Segments - The segment revenue from consumer finance was HKD 3,499.3 million, accounting for the majority of total revenue[19]. - Revenue from investment management and fund management segments was HKD 122.1 million in 2022, down from HKD 190.6 million in 2021, indicating a decline of about 36.0%[25]. - The company’s revenue for 2022 was HKD 4,054.1 million, a decrease of 6.2% compared to HKD 4,324.0 million in 2021[45]. - The company achieved a pre-tax profit contribution of HKD 122.3 million from its mortgage loan business, marking a historical high since its inception in 2015[65]. - The mortgage loan business achieved a pre-tax profit of HKD 122.3 million in 2022, slightly up from HKD 120.0 million in 2021, marking a historical high for this segment[48]. Asset Management and Investments - The asset management scale increased from USD 809 million at the end of 2021 to USD 975 million at the end of 2022, driven by the performance of the ActusRayPartners European Alpha Fund[5]. - The investment management segment reported a loss before tax of HKD 2,403.8 million, primarily due to unrealized losses in alternative investments and real estate[5]. - The investment management division recorded an unrealized loss of HKD 1,865.9 million in 2022, partially offset by realized gains of HKD 400.8 million[75]. - The overall return rate for the investment management segment in 2022 was -8.3%, with public markets returning -6.1%[77]. - The alternative investment portfolio's year-end value was HKD 12,928.3 million, with an annual return rate of -9.8%, down from HKD 15,235.1 million in the previous year[87]. Dividends and Share Repurchase - The company announced a second interim dividend of HKD 0.14 per share, maintaining the same level as the previous year, with total dividends for 2022 amounting to HKD 0.26 per share[3]. - The total dividend declared for 2022 was HKD 512.1 million, down from HKD 592.7 million in 2021, representing a decrease of approximately 13.6%[31]. - The company plans to continue its share repurchase program, having repurchased 5.9 million shares at a total net cost of HKD 18.3 million in 2022[3]. - The company repurchased a total of 5,930,000 shares at a total cost of HKD 18,270,110 during the year ended December 31, 2022[132]. Financial Position and Liabilities - Non-current assets decreased to HKD 22,258.8 million as of December 31, 2022, from HKD 24,943.4 million in the previous year[13]. - The total liabilities decreased from HKD 12,199.8 million in 2021 to HKD 6,849.9 million in 2022, a reduction of approximately 43.5%[14]. - The company's equity attributable to shareholders decreased to HKD 22,358.1 million in 2022 from HKD 25,075.2 million in 2021, a decline of about 11.0%[14]. - The company's total borrowings reached HKD 15,650.0 million as of December 31, 2022, down 14.4% from HKD 18,283.0 million in 2021[112]. - The net debt decreased by 20.5% to HKD 9,766.1 million, compared to HKD 12,282.3 million in the previous year[111]. Market Outlook and Strategic Initiatives - The group expressed cautious optimism for 2023, citing improved financing business prospects due to the easing of COVID-19 measures in Hong Kong and mainland China[9]. - The company plans to continue focusing on market expansion and new product development in the upcoming fiscal year[20]. - The company plans to focus on credit-driven new business initiatives in the short term, anticipating a quicker market repricing due to significant uncertainties[93]. - The company anticipates growth in the consumer finance business in 2023, driven by an improving regional economic outlook[106]. Employee and Governance - The total number of employees decreased to 1,608 as of December 31, 2022, from 1,738 in 2021, reflecting ongoing cost-efficiency efforts[119]. - The company has adopted competitive employee benefits, including optimized medical and dental benefits, to attract and retain top talent[120]. - The company has maintained a strong focus on employee training and professional development through personal training and online learning platforms[120]. - The company’s board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[138]. Risk Factors and Challenges - The group acknowledged ongoing uncertainties related to global economic recession and geopolitical tensions, which continue to challenge the operating environment[9]. - The company faced significant financial market volatility and economic downturns in 2022, impacting its financial performance[45]. - The net impairment loss for financial instruments was HKD (702.3 million), representing 5.8% of the average loan balance, compared to HKD (509.4 million) or 4.2% in the previous year[57].

Financial Performance - Revenue for the first half of 2022 was HKD 2,056.1 million, a decrease of 1.9% compared to HKD 2,096.0 million in the same period of 2021[4]. - The company reported a loss attributable to shareholders of HKD 401.2 million for the first half of 2022, compared to a profit of HKD 2,693.0 million in the same period of 2021[5]. - Basic loss per share for the first half of 2022 was HKD 0.205, down from earnings of HKD 1.362 in the first half of 2021[6]. - Total revenue for the six months ending June 30, 2022, was HKD 2,074.6 million, a decrease from HKD 2,170.2 million in the same period of 2021, representing a decline of approximately 4.4%[87]. - The company reported a net loss of HKD 200.7 million for the six months ending June 30, 2022, compared to a profit of HKD 2,951.9 million in the same period of 2021[88]. - The group reported a net loss of HKD 635.1 million for the first half of 2022, with interest income of HKD 37.6 million[99]. Asset Management - The total assets of Sun Hung Kai & Co. Limited amounted to approximately HKD 49 billion as of June 30, 2022[3]. - The total equity attributable to shareholders was HKD 23,929.6 million, reflecting a decrease from HKD 25,075.2 million[91]. - The total assets decreased to HKD 36,575.5 million, down from HKD 37,000 million in the previous period[89]. - The total financial assets measured at fair value through profit or loss reached HKD 1,698.5 million, including HKD 780.1 million in Hong Kong listed equity securities and HKD 906.9 million in overseas listed equity securities[118]. - The total financial assets realized gains and interest income decreased from HKD 1,611.5 million in the previous year to HKD 582.9 million, reflecting a decline of 63.8%[22]. Loan and Financing Activities - The financing business generated a pre-tax profit of HKD 718.4 million during the first half of 2022[6]. - The consumer finance business, operated through Asia United Finance, contributed HKD 645.4 million pre-tax, a decrease of 26.0% year-on-year[9]. - The net loan balance reached HKD 12,320.9 million, up from HKD 11,765.6 million in the previous year[10]. - The total loans outstanding in Hong Kong amounted to HKD 8,703.6 million, a slight increase from HKD 8,572.4 million[15]. - The average loan return increased to 30.2% from 28.1% year-over-year[10]. Impairment and Credit Losses - The impairment loss increased to HKD 312.3 million, compared to HKD 206.8 million in the same period last year[10]. - The annualized impairment loss as a percentage of average loan balance rose to 5.0% from 3.6% year-over-year[11]. - The company reported a significant increase in expected credit loss provisions due to the unpredictable economic conditions in Hong Kong and mainland China[97]. - The company's financial assets impairment loss for the six months ending June 30, 2022, was HKD 312.5 million, slightly improved from HKD 337.9 million in the same period of 2021[88]. Dividends and Share Repurchases - The interim dividend declared was HKD 0.12 per share, maintaining the same level as in the first half of 2021[7]. - The company repurchased 829,000 shares during the first half of 2022, with a total net cost of HKD 3.1 million[7]. - The company announced an interim dividend of HKD 0.12 per share for the six months ended June 30, 2022, consistent with the previous year[79]. - The total number of shares repurchased during the period was 829,000, with a total cost of HKD 3,135,260[79]. Market Conditions and Competition - The overall market competition intensified with new entrants actively promoting their services, impacting loan issuance[14]. - The company anticipates increased demand for loan services and a reduction in credit losses as COVID-19 restrictions ease in Hong Kong and mainland China[16]. - The company has adopted a more cautious approach to capital allocation due to the uncertain global economic outlook[33]. Employee and Corporate Governance - The total number of employees decreased to 1,738, with a significant reduction in employee costs amounting to HKD 248.1 million compared to HKD 538.9 million in the first half of 2021[63]. - The company has implemented various measures to ensure employee health and safety during operations, including remote work plans and social distancing[63]. - The company has complied with the corporate governance code, with the board meeting at least four times a year to discuss business and operational matters[75]. Risk Management - The company's risk management framework emphasizes the importance of managing market risk, credit risk, and liquidity risk to enhance shareholder value[162]. - Interest rate risk arises mainly from private financing, mortgage loans, and consumer finance loans, with a focus on managing interest margins[164]. - Foreign exchange risk is primarily associated with trading positions and loans denominated in foreign currencies, including AUD, GBP, EUR, and RMB[165]. Future Outlook - Future outlook includes strategic initiatives aimed at market expansion and potential mergers or acquisitions to enhance competitive positioning[168]. - The company plans to continue investing in online platforms and customer service facilities to drive business growth[14]. - The company plans to expand its market presence and invest in new product development[90].

Financial Performance - The company's overall business portfolio achieved a 10.4% increase in profit attributable to shareholders, reaching HKD 2,813.7 million in 2021, compared to HKD 2,547.7 million in 2020[19]. - Earnings per share rose by 11.2% to HKD 142.7 cents, up from HKD 128.3 cents in 2020[19]. - The company's revenue for 2021 was HKD 4,324.0 million, representing a 6.6% increase from HKD 4,056.6 million in 2020[40]. - Profit attributable to shareholders for 2021 was HKD 2,813.7 million, up 10.4% from HKD 2,547.7 million in 2020[41]. - The financing business rebounded strongly, contributing a record pre-tax profit of HKD 1,665.4 million, while mortgage loans contributed HKD 120.0 million, a 6.5% increase year-on-year[21]. - The investment management business reached HKD 21,087.9 million in assets by the end of 2021, with realized gains and interest income totaling HKD 3,481.5 million, a 98.4% increase from the previous year[21]. - The financing business contributed a pre-tax profit of HKD 1,790.5 million, a significant increase of 46.9% from HKD 1,218.9 million in 2020[44]. - The consumer finance segment achieved a pre-tax profit of HKD 1,665.4 million, marking a record high with a growth of 34.5% compared to HKD 1,238.5 million in 2020[44]. - The investment management segment reported a pre-tax profit of HKD 1,934.4 million, down 9.0% from HKD 2,126.4 million in 2020[43]. Asset and Equity Growth - The total assets of the group as of December 31, 2021, were approximately HKD 48.8 billion[4]. - The company's total assets increased by 10.7% to HKD 48,790.1 million, while shareholder equity rose by 10.8% to HKD 25,075.2 million[29]. - The capital-to-debt ratio improved from 41.4% to 49.0%, reflecting a stronger financial position[29]. - The total loan balance reached HKD 12,680.5 million by the end of 2021, marking a 12.0% year-on-year increase[47]. - The total loan balance in Hong Kong increased by 5.4% to HKD 8,767.3 million, with new loans issued rising by 17.4% to HKD 12,177.3 million[50]. - The total loan balance in mainland China increased to HKD 3,913.2 million in 2021, up 30.4% from HKD 3,000 million in 2020[53]. Dividend and Shareholder Returns - The company declared a total dividend of HKD 30.0 cents per share for 2021, an increase of 15.4% from HKD 26.0 cents in 2020, with a payout ratio of 21.1%[20]. - The company repurchased 9.1 million shares at a net cost of HKD 37.8 million during the year[41]. - The company declared a total dividend of HKD 0.30 per share for 2021, which includes a special dividend of HKD 0.04 per share[41]. Business Structure and Strategy - The group has successfully established a diversified and complementary business structure, with financing, investment management, and fund management as its core pillars[13]. - The fund management division was officially launched in 2021, providing an additional source of income and further diversifying the company's products and investment strategies[7]. - The company has initiated six partnerships/funds in 2021, covering various strategies including Asia-Pacific long/short equity funds and real estate loan funds[17]. - The company plans to prudently expand its real estate investment portfolio, focusing on opportunities with strong downside protection in developed economies[17]. - The financing business provides stable returns and is less correlated with market conditions, complementing the investment management and fund management operations[8]. - The company plans to continue exploring new business partnerships to expand its customer base and enhance loan volumes[54]. Risk Management and Compliance - The group has established a comprehensive risk management framework, with a dedicated Risk Management Committee reporting directly to the Board[121]. - The risk management process includes three stages: risk assessment, risk mitigation, and risk monitoring, involving consultations with the Board and relevant stakeholders[123]. - The group emphasizes compliance with legal regulations and has strengthened its compliance framework to protect investor interests[119]. - The group identified major risks in 2021, including the ongoing impact of COVID-19 on the business environment, particularly in retail and hospitality sectors[128]. - The group has improved its emergency planning and resilience capabilities in response to COVID-19 restrictions, with no major impact on operations reported[150]. Employee and Corporate Governance - As of December 31, 2021, the total number of employees in the group was 1,738, a decrease from 2,219 on December 31, 2020, primarily due to the ongoing online transition of consumer finance operations in mainland China[116]. - Total employee costs amounted to HKD 886.9 million in 2021, compared to HKD 852.8 million in 2020, reflecting the successful expansion of the fund management business[116]. - The group has maintained a high level of corporate governance, emphasizing integrity, transparency, accountability, and independence[153]. - The board includes independent non-executive directors who provide extensive expertise and experience, ensuring independent judgment on strategic matters[156]. - The company has adopted a board diversity policy since September 1, 2013, aiming to enhance the overall skills, knowledge, and experience of the board members[169]. Investment Performance - The company's investment portfolio achieved an annual return of 18.5% in 2021, outperforming the Hang Seng Index and the Nasdaq Golden Dragon China Index[76]. - The alternative investment portfolio totaled HKD 14,991.7 million at year-end 2021, with a year-to-date return of 17.4%[80]. - Private equity investments recorded a strong composite return of 23.7% in 2021, driven by successful exits from several funds and direct investments[81]. - The real estate investment portfolio was valued at HKD 2,364.3 million as of December 31, 2021, generating HKD 87.7 million in income during the year[86]. - The company's holdings in the U.S. accounted for 51.1% of its total investments, followed by Mainland China at 17.3%[78]. Fund Management Development - The company successfully launched a fund management platform and split its equity strategies into East Point Asset Management and SHK Latitude Alpha Fund in 2021[69]. - The company established its fund management platform, Sun Hung Kai Capital Partners, in the first half of 2021, holding licenses for Type 1, 4, and 9 from the Securities and Futures Commission[88]. - The SHK Latitude Alpha Fund was launched in July 2021, with over $600 million in seed capital invested across six partner funds, laying a solid foundation for future growth[89]. - The company raised over $100 million in external funding for its fund management business in 2021, indicating solid progress in its development[89]. Future Outlook - The company remains cautiously optimistic amid global uncertainties, maintaining a robust liquidity level and a balanced diversified business portfolio[26]. - The company plans to focus on developing alternative investment strategies and customized solutions in 2022, aiming to establish itself as a leading alternative investment firm in Asia[102]. - The company remains cautiously optimistic about its business outlook for 2022, citing factors such as achieving critical mass in asset management and the absolute return of investment strategies[94].

Financial Performance - The company's attributable profit increased by 287.4% year-on-year to HKD 2,693.0 million[6]. - Basic earnings per share increased by 290.3% to HKD 136.2 cents[6]. - Pre-tax profit for the first half of 2021 was HKD 3,215.7 million, a 238.3% increase compared to HKD 950.5 million in the same period of 2020[10]. - The revenue for the first half of 2021 increased by 7% to HKD 1,741.4 million compared to HKD 1,623.7 million in the same period of 2020[16]. - Total revenue for the six months ended June 30, 2021, was HKD 2,170.2 million, an increase from HKD 2,049.6 million for the same period in 2020, representing a growth of 5.9%[80]. - The net profit for the period was HKD 2,951.9 million, significantly higher than HKD 862.7 million for the same period in 2020, marking an increase of 242.5%[80]. - The total comprehensive income for the period was HKD 3,253.2 million, compared to HKD 688.1 million in the same period last year, representing an increase of 373.5%[80]. Asset and Liability Management - Total assets rose by 11% to approximately HKD 47,654.0 million as of June 30, 2021[6]. - The book value per share increased by 23.1% to HKD 12.8 as of June 30, 2021[11]. - The company's total liabilities were HKD 10,117.3 million, up from HKD 9,247.5 million, indicating an increase of 9.4%[81]. - The total equity increased to HKD 28,474.7 million from HKD 25,952.3 million, reflecting a growth of 9.7%[81]. - The net debt to equity ratio decreased to 39.2% as of June 30, 2021, from 41.4% at the end of 2020[55]. - The total borrowings amounted to HKD 15,709.7 million, a 5% decrease from HKD 16,614.1 million as of December 31, 2020[56]. Dividend and Shareholder Returns - The interim dividend remained unchanged at HKD 12.0 cents per share[8]. - The company declared an interim dividend of HKD 0.12 per share for the six months ended June 30, 2021, consistent with the previous year[71]. - A total of 550,000 shares were repurchased at a maximum price of HKD 4.25 and a minimum price of HKD 4.15, with a total cost of HKD 2,317,150[71]. Operational Efficiency - Operating costs increased by 43.3% to HKD 896.5 million due to higher loan volumes and increased employee expenses[10]. - The cost-to-income ratio improved to 32.0% from 30.6% year-on-year, reflecting better operational efficiency[16]. - The company reduced its borrowing costs by 33% due to lower interest rates, positively impacting profitability[14]. Loan and Financing Performance - The net loan balance increased by 17% year-on-year to HKD 11,082.8 million, while the total loan balance rose by 16% to HKD 11,765.6 million[17]. - The overdue loan ratio decreased to 7.5% as of June 30, 2021, down from 8.1% at the end of 2020[16]. - The company achieved a pre-tax contribution of HKD 871.9 million from its financing business, a 68% increase compared to the same period in 2020[16]. - The financing business generated a pre-tax profit of HKD 919.4 million, up 51.3% from HKD 607.8 million in the previous year[10]. Investment Management - Investment management pre-tax profit surged by 430.0% to HKD 2,312.2 million, driven by strong performance across all asset classes[10]. - Total revenue for the investment management segment reached HKD 2,728.9 million, a 313.4% increase from HKD 660.1 million year-on-year[33]. - The average asset return for the investment management segment was 14.2% for the first half of 2021[32]. Risk Management - The group emphasizes the importance of risk management alongside business growth, focusing on financial risks such as market risk, credit risk, and liquidity risk[142]. - Credit risk is managed through established procedures regulated by the executive committee, utilizing external and internal data to forecast economic variables and assess credit loss[143]. - The group maintains a prudent liquidity ratio to ensure effective cash flow management, even in adverse market conditions[144]. Economic Outlook - The company remains cautiously optimistic about achieving strong full-year performance despite ongoing economic challenges[25]. - The company is actively seeking new investment opportunities while cautiously managing existing portfolios amid ongoing pandemic impacts[45]. - The company plans to continue expanding its market presence in Mainland China, leveraging the growth in revenue from that region[90].