Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 89,283,000, an increase of 40.2% compared to HKD 63,733,000 for the same period in 2023[2] - The company reported a profit before tax of HKD 19,364,000, up from HKD 6,493,000 in the previous year, representing a significant increase of 197.5%[3] - Net profit attributable to equity holders for the period was HKD 13,132,000, compared to HKD 276,000 in the same period last year, marking a substantial increase of 4,661.2%[3] - Basic and diluted earnings per share for the period were HKD 2.05, compared to HKD 0.04 in the previous year, reflecting a significant improvement[3] - Investment income rose significantly to HKD 12,616 thousand, up from HKD 5,064 thousand, marking a 148.5% increase year-over-year[10] - Total income from client contracts reached HKD 64,778 thousand, a 38.9% increase from HKD 46,580 thousand in the previous year[12] - The company reported a significant increase in underwriting and placement commission income from corporate finance, rising to HKD 14,770 thousand from HKD 417 thousand[10] - The corporate finance segment's revenue was HKD 17,378,000 for the six months ended June 30, 2024, compared to HKD 4,591,000 in the same period of 2023, indicating a substantial increase of approximately 277.5%[18][19] - The newly reported fixed income investment division achieved revenue of HKD 12.62 million, a 149% increase from HKD 5.06 million year-on-year, with an average bond position of USD 45.19 million, up 136%[62] Asset and Liability Management - Total assets as of June 30, 2024, were HKD 1,238,775,000, an increase from HKD 1,118,777,000 as of December 31, 2023[5] - Current liabilities decreased to HKD 828,133,000 from HKD 696,054,000, indicating improved liquidity management[5] - The company's equity attributable to equity holders was HKD 939,312,000, slightly down from HKD 940,133,000 at the end of 2023[6] - The total assets for the reporting segments as of June 30, 2024, amounted to HKD 1,188,999,000, compared to HKD 1,087,082,000 as of June 30, 2023, reflecting a growth of about 9.3%[18][19] - The total liabilities for the reporting segments as of June 30, 2024, were HKD 804,676,000, an increase from HKD 661,795,000 in the previous year, representing a rise of approximately 21.5%[18][19] - The total value of trading and other receivables decreased from HKD 334,433,000 as of December 31, 2023, to HKD 275,911,000 as of June 30, 2024, a reduction of 17.5%[37] - The total expected credit loss for trading and other receivables was HKD 24,449,000 as of June 30, 2024, compared to HKD 13,786,000 as of December 31, 2023, indicating a significant increase in credit risk[38] Cost Management - Other operating expenses decreased to HKD 22,684,000 from HKD 27,904,000, indicating improved cost management[2] - Employee costs for the six months ended June 30, 2024, were HKD 31,210,000, a decrease of 1.9% from HKD 31,824,000 in the same period of 2023[25] - The financing costs for the six months ended June 30, 2024, were HKD 14,221,000, compared to HKD 12,095,000 in the same period of 2023, representing an increase of approximately 17.6%[21] Corporate Governance - The company is committed to maintaining high standards of corporate governance and has implemented policies in line with the corporate governance code[73] - The board of directors includes Mr. Zhang Yi (Chairman), Mr. Zhang Xunyan (CEO), and Ms. Yan Qizhong (CFO) [79] - Independent non-executive directors include Mr. Zheng Minggao, Ms. Hu Lielui, and Mr. Zhao Guangming [79] - The company is focused on enhancing corporate governance through a diverse board structure [79] - The presence of independent directors enhances transparency and accountability [79] Market and Economic Outlook - The company's first quarter GDP growth in 2024 was 5.3%, exceeding market expectations of 4.8%, while the second quarter growth slowed to 4.7%, below the expected 5.1%[53] - The cumulative GDP growth for the first half of 2024 was 5.0%, lower than the market forecast of 5.2%[53] - The GDP growth target for 2024 is maintained at approximately 5%, but economic recovery is not comprehensive, limiting corporate profit recovery space[64] - The Hong Kong government forecasts annual economic growth between 2.5% and 3.5% due to external factors impacting economic confidence and activity[64] Strategic Initiatives - The group will continue to enhance collaboration with Xinda Securities to develop integrated financial services, focusing on cross-border investment banking and asset management[66] - The group aims to deepen cooperation with Xinda Securities and the China Xinda ecosystem to achieve a win-win situation while optimizing internal management and asset capabilities[67] - The group plans to expand its wealth management direction and diversify products, particularly targeting the Greater Bay Area for cross-border financial services[67] - The group expects to maintain positive sentiment in the local market in the second half of the year, leveraging established foundations to enhance market-oriented business[67]

Economic Indicators - In 2023, the core consumer price index (CCPI) in the US decreased from 5.6% in January to 3.9% in December, while the core personal consumption expenditures (PCE) price index fell from 4.9% to 2.9%[8]. - The US dollar index dropped by 4.6% in Q4 and 2.1% for the entire year, reflecting market expectations of the end of the interest rate hike cycle[9]. - Major US stock indices rose between 11.2% and 13.6% in Q4, with annual increases ranging from 13.7% to 43.4%[9]. - The Stoxx 50, German, and French stock indices saw annual gains between 16.5% and 20.3%, while the UK stock index increased by 3.8%[9]. - The JPM Emerging Markets Government Bond Index rose by 10.9% for the year, with a 6.9% increase in Q4[9]. - The Markit iBoxx Asian USD High Yield Bond Index fell by 14.6% for the year, while the Asian USD Real Estate Bond Index dropped significantly by 50.3%[9]. Financial Performance - The group recorded a total revenue of HKD 136.39 million in 2023, a decrease of 4% compared to HKD 142.03 million in 2022[18]. - The group's net loss after tax for the year was HKD 12.85 million, an improvement from a net loss of HKD 22.41 million in the previous year, representing a reduction of approximately 42%[18]. - The asset management segment's managed scale increased by 6% to HKD 51.5 billion, but operating income decreased by 23% to HKD 57.03 million due to competitive fee reductions[20]. - The group's share of profits from joint ventures increased by 277% to HKD 24.36 million, primarily due to the turnaround of an absolute return fund and improved performance from a private equity investment joint venture[19]. - The group's operating costs decreased by 7% to HKD 115.87 million, aided by a 6% reduction in personnel costs[18]. - The group's other income fell by 20% to HKD 23.76 million, compared to HKD 29.72 million in 2022[18]. - The group's financial expenses rose by 29% due to increased market interest rates, offsetting the impact of a decrease in average borrowing scale[18]. - The group reported a pre-tax loss of only HKD 0.17 million, a significant improvement from a loss of HKD 11.38 million in 2022[19]. Market Conditions - In 2023, the total fundraising amount in the Hong Kong IPO market was approximately HKD 46.3 billion, a decrease of 55.7% compared to the previous year, marking the lowest level in nearly 20 years[23]. - The equity business managed to successfully list one IPO project and completed several financial and compliance advisory projects despite the sluggish market conditions[23]. - The bond issuance segment completed several offshore USD and RMB bond issuance projects totaling USD 1.91 billion, maintaining a similar scale to the previous year[23]. - The operating income for the bond issuance segment increased by 42% to HKD 19.23 million, compared to HKD 13.54 million in the same period last year[23]. - The average daily trading amount in the Hong Kong securities market decreased by 16% to HKD 105 billion, down from HKD 124.9 billion the previous year[24]. - The operating income for the sales and trading segment slightly increased by 2% to HKD 49.35 million, with commission income at HKD 22.36 million, down from HKD 31.62 million in 2022[24]. - The company recorded a loss of HKD 7.38 million in the sales and trading segment, compared to a loss of HKD 7.33 million in the previous year[24]. Strategic Initiatives - The company plans to enhance collaboration with Xinda Securities to strengthen integrated financial services, focusing on cross-border investment banking services and asset management products[33]. - The group aims to increase business volume and market share while adhering to risk management principles, focusing on wealth management and diversifying products in the Guangdong-Hong Kong-Macao Greater Bay Area[34]. - The group is actively exploring the development of the offshore debt market for Chinese enterprises, aiming to meet diverse client needs with tailored solutions[34]. - The group emphasizes the importance of talent cultivation and has established incentive mechanisms to encourage better performance and risk control among employees[39]. - The group is prepared to face the current challenging business environment and aims to seize various market opportunities in 2024 to enhance overall performance and shareholder returns[34]. Corporate Governance - The board consists of three executive directors and three independent non-executive directors, meeting the minimum requirements set by the listing rules[57]. - The company is committed to maintaining high standards of corporate governance and has established policies and procedures in line with the corporate governance code[55]. - The independent non-executive directors have extensive experience in finance and management, contributing to the company's strategic oversight[48][50]. - The company has been compliant with the corporate governance code throughout the fiscal year, with all directors attending the board meetings[56]. - The company aims to enhance its market position through strategic decision-making and oversight by the board[56]. - The company is actively reviewing and monitoring its corporate governance practices to ensure compliance with relevant codes[56]. - The board of directors consists of members with appropriate experience and skills, ensuring effective governance and oversight[59]. - The company has three independent non-executive directors, all confirmed to be independent as of December 31, 2023[61]. - The remuneration committee, composed of three independent non-executive directors, held one meeting during the fiscal year to discuss the remuneration of two executive directors[72]. Environmental, Social, and Governance (ESG) Efforts - The company has received multiple environmental, social, and governance awards in 2023, reflecting its commitment to corporate social responsibility[113]. - The company aims to reduce greenhouse gas emissions from business flights by 1% to 2% in 2024 compared to 2023 levels[124]. - The primary source of greenhouse gas emissions is electricity consumption, prompting the company to implement energy-saving measures such as installing LED lighting and optimizing air conditioning settings[126]. - The company has launched a new mobile trading platform in October 2021, offering online account opening and various trading services[129]. - The company encourages stakeholders to provide feedback on environmental, social, and governance (ESG) matters through various channels, contributing to business decision-making[118]. - The company has set a goal to minimize paper consumption by promoting electronic communication and implementing a paperless board meeting system[129]. - The company emphasizes the importance of effective resource utilization and aims to reduce waste in daily operations[126]. - The board is committed to integrating ESG considerations into business decision-making processes to create long-term value for stakeholders[120]. - Total greenhouse gas emissions decreased by 9% from 2022 to 2023, achieving the reduction target for 2023[131]. Employee and Workplace Policies - The company has a total of 90 employees, with an equal gender distribution of 45 males and 45 females[149]. - The company provided over 1,500 hours of training this year, emphasizing the importance of employee skill development[160]. - The company has implemented various preventive measures against COVID-19, ensuring a safe working environment[157]. - The company has a policy of equal employment opportunities, providing training and career development without discrimination[147]. - The company actively promotes a culture of health and safety, with strict adherence to safety measures outlined in the employee handbook[157]. - The company strictly adheres to the Employment Ordinance in Hong Kong, prohibiting child labor and forced labor[165]. - The company employs 20 suppliers in Hong Kong for administrative services, ensuring fair selection criteria to avoid conflicts of interest[168]. Financial Management - The company did not declare any interim dividends for the year 2023, consistent with 2022, and the board does not recommend a final dividend for the year ending December 31, 2023, also in line with 2022[187]. - The company's available distributable reserves as of December 31, 2023, amounted to HKD 60,692,000, a decrease from HKD 79,468,000 in 2022[193]. - The company issued a five-year unsecured corporate bond with a maximum principal amount of HKD 200,000,000, with interest rates ranging from 3% to 5%[191]. - The company has no outstanding bonds as of December 31, 2023, following the repayment of a HKD 10,000,000 bond on April 21, 2023[191].

Financial Performance - The company's total revenue for the year ended December 31, 2023, was HKD 126,184,000, a decrease of 7.7% from HKD 136,281,000 in 2022[3] - Other income for the same period was HKD 23,761,000, down from HKD 29,715,000, reflecting a decline of 20.1%[3] - The net loss attributable to equity holders for the year was HKD 12,849,000, compared to a loss of HKD 22,408,000 in 2022, indicating an improvement of 42.5%[4] - The company's basic and diluted loss per share was HKD 2.00, an improvement from HKD 3.49 in the previous year[4] - Total revenue for 2023 was HKD 126,184,000, a decrease of 7.7% from HKD 136,281,000 in 2022[20] - Revenue from asset management services decreased to HKD 56,128,000 in 2023 from HKD 73,695,000 in 2022, representing a decline of 23.9%[22] - Revenue from sales and trading business decreased to HKD 22,355,000 in 2023 from HKD 31,616,000 in 2022, a drop of 29.2%[20] - Corporate finance revenue increased to HKD 10,468,000 in 2023 from HKD 7,988,000 in 2022, marking a growth of 31.0%[20] - Investment income increased to 6,394 thousand HKD in 2023 from 5,805 thousand HKD in 2022, reflecting a growth of 10.1%[24] - The net loss from foreign exchange was reduced to (3,947) thousand HKD in 2023 from (13,468) thousand HKD in 2022, showing an improvement of 70.7%[25] - Total comprehensive loss for the year was HKD 12,849,000, an improvement from a loss of HKD 22,408,000 in 2022, indicating a reduction in losses by 43%[50] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 1,118,777,000, slightly up from HKD 1,118,391,000 in 2022[9] - The company's non-current assets decreased to HKD 527,691,000 from HKD 547,319,000, a decline of 3.6%[9] - Current liabilities increased to HKD 696,054,000 from HKD 688,952,000, reflecting a rise of 1.6%[9] - The company's total equity attributable to equity holders was HKD 940,133,000, down from HKD 948,113,000, a decrease of 0.8%[10] - The company reported a net cash position of HKD 519,331,000 in cash and bank balances, down from HKD 587,044,000 in 2022[9] - Total assets decreased slightly to HKD 1,646,468,000 in 2023 from HKD 1,665,710,000 in 2022, a decline of 1.1%[39] - Total liabilities also decreased to HKD 706,335,000 in 2023 from HKD 717,597,000 in 2022, reflecting a reduction of 1.6%[39] - The total value of trade and other receivables decreased from HKD 387,419,000 in 2022 to HKD 334,433,000 in 2023, a decline of 13.7%[54] - The total value of receivables from margin clients decreased to HKD 132,984,000 in 2023 from HKD 142,268,000 in 2022, a decrease of 6.5%[60] - The amount due from clients in securities brokerage decreased to HKD 75,031,000 in 2023 from HKD 123,237,000 in 2022, reflecting a decline of 39.1%[62] Revenue Segmentation - The reported segment revenue for asset management was 57,033 thousand HKD in 2023, down from 74,542 thousand HKD in 2022, a decline of 23.5%[30][33] - The company's pre-tax profit (excluding interest and tax) for the reporting segments was 5,648 thousand HKD in 2023, a decrease from 14,124 thousand HKD in 2022, representing a decline of 60%[30][33] - Interest income from bank deposits was 14,121 thousand HKD in 2023, compared to 3,451 thousand HKD in 2022, indicating a significant increase of 308.5%[30][33] - The sales and trading segment's operating income slightly increased by 2% to HKD 49.35 million, despite a 13.8% decline in the Hang Seng Index[94] - The corporate finance segment recorded an operating income of HKD 19.23 million, up 42% from HKD 13.54 million in the previous year, with total bond issuance amounting to USD 1.91 billion[93] Market and Economic Conditions - The core consumer price index (CCPI) in the US fell from 5.6% in January to 3.9% in December 2023, showing a significant decrease in inflation[75] - The core personal consumption expenditures (PCE) price index in the US decreased from 4.9% in January to 2.9% in December 2023, indicating a downward trend in inflation[75] - The US Federal Reserve raised interest rates by 25 basis points in 2023, reaching a range of 5.25% to 5.5%, with a median forecast for 2024 and 2025 at 4.6% and 3.6% respectively[96] - The mainland's economic recovery in 2023 was weaker than expected, primarily due to sluggish overall demand and structural issues in the real estate sector[98] - The mainland's securities market saw a series of measures in August 2023 to invigorate the capital market, including halving the stamp duty on A-shares[98] Strategic Initiatives - The company plans to enhance collaboration with its indirect controlling shareholder, Xinda Securities, to integrate cross-border financial services[103] - The company aims to establish a full-license securities institution overseas as part of the China Xinda ecosystem[104] - The group aims to increase business volume and market share while expanding its wealth management services in the Guangdong-Hong Kong-Macao Greater Bay Area[105] - The group is actively exploring the development of the offshore debt market to meet various customer issuance needs[105] - The group has streamlined its workforce, reducing employee numbers from 105 to 90, while implementing incentive mechanisms to encourage better performance[109] Governance and Compliance - The company has adopted the "Standards for Directors Conducting Securities Transactions" as per Appendix C 3 of the Listing Rules, confirming compliance throughout the 2023 fiscal year[117] - The Audit Committee has reviewed the internal controls and financial reporting matters of the group, including the annual performance up to December 31, 2023[118] - The company will continue to optimize internal management and enhance asset capabilities while maintaining stable and compliant operations[104]

Economic Indicators - In the first half of 2023, the U.S. Consumer Price Index (CPI) rose by 4.0% year-on-year, marking a decline for 11 consecutive months[4]. - The Federal Reserve raised interest rates by 25 basis points in February, March, and May 2023, with expectations that the rate hike cycle is not yet over[4]. - The European Central Bank raised interest rates by 50 basis points in February and March 2023, indicating continued inflationary pressures[5]. - The outlook for the second half of 2023 indicates continued economic uncertainty, with expectations of further interest rate hikes and potential market volatility due to geopolitical tensions[23]. Stock Market Performance - In the first half of 2023, the U.S. stock market indices rebounded, with increases ranging from 3.4% to 12.8%, and an overall gain of 3.8% to 31.7%[5]. - The Hong Kong stock market saw a decline of 4.4% in the first half of 2023, with the Hang Seng Index closing at 18,916 points[11]. - The average daily trading volume in the Hong Kong stock market dropped by 16.4% year-on-year to HKD 115.5 billion in the first half of 2023[11]. Corporate Financial Performance - The group's total revenue for the first half of 2023 was HKD 69.73 million, a 7% increase from HKD 65.25 million in 2022[15]. - The group's net profit after tax for the first half of 2023 was HKD 280,000, compared to a net loss of HKD 39.47 million in the same period last year[15]. - The asset management segment reported operating income of HKD 32.22 million, a 4% increase from HKD 31.04 million in 2022[18]. - The corporate finance segment's operating income decreased by 58% to HKD 4.59 million, down from HKD 10.81 million in the previous year[19]. - The sales and trading segment's operating income fell by 12% to HKD 21.47 million, compared to HKD 24.31 million in the same period last year[20]. - The group's operating costs (excluding commission expenses and finance costs) decreased by 8% to HKD 31.31 million from HKD 33.85 million in 2022[15]. - The financing costs increased by 62% compared to the same period last year due to rising market interest rates[15]. Market and Business Outlook - The group anticipates a rebound in inbound tourism and improvement in the labor market, which may support recovery in the retail and dining sectors in Hong Kong[24]. - The group will continue to strengthen integration with Xinda Securities, focusing on cross-border financial services, including USD bond issuance and Hong Kong IPOs[27]. - The group aims to expand its sales and trading business while adhering to risk management principles, targeting institutional and high-net-worth clients[28]. - The group plans to diversify its wealth management products to meet clients' asset allocation needs and explore opportunities in capital markets[28]. - The group believes that the local market will maintain a positive sentiment post-pandemic, leveraging established foundations to enhance market operations[28]. Corporate Governance and Compliance - The company has adhered to all corporate governance codes as stipulated in the corporate governance code during the period from January 1, 2023, to June 30, 2023[62]. - The audit committee has reviewed the unaudited interim consolidated financial statements for the six months ended June 30, 2023[67]. - The company is committed to maintaining high standards of corporate governance in accordance with the listing rules[61]. - The company’s board will continue to oversee and review the group’s corporate governance practices to ensure compliance with the relevant codes[63]. - The company has adopted the standard code for securities transactions by directors and confirmed compliance for the six months ended June 30, 2023[66]. Financial Position and Assets - The company's financial position as of June 30, 2023, reflects adherence to the relevant financial reporting standards[72]. - The total assets as of June 30, 2023, were HKD 1,619,306,000, down from HKD 1,625,110,000 at the end of 2022[80]. - The company's current liabilities decreased to HKD 659,675,000 from HKD 688,952,000, indicating improved liquidity[80]. - The company’s equity attributable to equity holders decreased to HKD 940,079,000 from HKD 948,113,000[81]. - The company reported a significant reduction in financing costs, which increased to HKD 12,095,000 from HKD 7,461,000, reflecting a rise of 62.5%[76]. Revenue and Income Sources - Revenue for the six months ended June 30, 2023, was HKD 58,669,000, a decrease of 11.7% compared to HKD 66,312,000 in 2022[76]. - Revenue from asset management services increased to HKD 31,949,000 in 2023 from HKD 30,749,000 in 2022, reflecting a growth of 3.9%[99]. - Revenue from sales and trading business decreased significantly to HKD 10,040,000 in 2023 from HKD 16,644,000 in 2022, a decline of 39.6%[99]. - The company reported a net loss from foreign exchange of HKD (4,761,000) for the six months ended June 30, 2023, compared to a loss of HKD (6,544,000) in the same period of 2022, indicating an improvement[103]. - Government grants received amounted to HKD 5,546,000 in 2023, significantly higher than HKD 915,000 in 2022, showing a substantial increase in support for business innovation and transformation[102]. Debt and Financing - As of June 30, 2023, the group had available bank revolving loans and overdraft facilities amounting to HKD 1.538 billion, with HKD 310 million already utilized[29]. - The company’s bank borrowings amounted to HKD 380,975,000, down from HKD 656,400,000 in the previous year, indicating a reduction in reliance on bank financing[87]. - The group’s net debt to adjusted capital ratio increased to 18.29% as of June 30, 2023, compared to 11.98% as of December 31, 2022[181]. - The fair value of liabilities under repurchase agreements was HKD 157,037,000 as of June 30, 2023, up from HKD 83,642,000 as of December 31, 2022[177]. Risk Management - The group faces various financial risks, including market risk (foreign exchange risk, equity price risk, and interest rate risk), credit risk, and liquidity risk, with a focus on minimizing adverse impacts on financial performance[192]. - The foreign exchange risk primarily arises from financial assets and liabilities denominated in foreign currencies, mainly RMB and USD, with ongoing reviews by the risk management committee to address market volatility[194]. - As of June 30, 2023, the group is exposed to cash flow interest rate risk related to floating-rate financial instruments, including margin financing loans and bank balances, with no current hedging policy in place[197]. - Credit risk primarily stems from debt instruments measured at fair value through other comprehensive income, bank deposits, and receivables, with policies in place to ensure credit is granted to clients with good credit records[199].

香港交易及結算所有限公司和香港聯合交易所有限公司對本公告之內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不 就因本公告之全部或任何部份內容所產生或因依賴該等內容所引致之 任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：111） 2023年 中 期 業 績 公 告 信 達 國 際 控 股 有 限 公 司（「本 公 司」）董 事（「董 事」）會（「董 事 會」）欣 然 宣 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至2023年6月30日 止6個 月 的 未 經 審核綜合業績如下： 簡 明 綜 合 損 益 表 截至2023年6月30日止6個月－未經審核 截至6月30日止6個月 2023 2022 附註 千港元 千港元 （未經審核） （未經審核） 收益 3 58,669 66,312 其他收入 3 14,700 14,164 ...

Economic Performance - The company reported a year-on-year GDP contraction of 3.5% for Hong Kong in 2022, significantly impacted by the fifth wave of COVID-19 and strict government measures[10]. - The company observed a 10.2% decline in the JPM Emerging Markets Government Bond Index for the year, despite a 7.8% recovery in the fourth quarter[5]. - The company reported a 9.9% year-on-year decline in December exports from China, with imports also down by 7.5%[6]. - The company highlighted a 3.9% year-on-year GDP growth in China for Q3 2022, but a slowdown to 2.9% in Q4, indicating ongoing economic challenges[6]. Stock Market Trends - The average daily trading volume of Hong Kong stocks decreased by 25.1% year-on-year to HKD 124.9 billion, following a peak of HKD 174.8 billion in March[11]. - The Hang Seng Index closed at 19,781 points, down 15.5% from the end of 2021, while the Hang Seng China Enterprises Index and Hang Seng Tech Index fell by 18.6% and 27.2% respectively[11]. - The company noted a significant decline in the IPO market, with 80 companies going public in 2022, a decrease of 15.8% year-on-year, and total fundraising amounting to HKD 104.5 billion, down 68.4%[12]. Financial Performance - The total revenue for the year was HKD 142.03 million, a decrease of 42% compared to HKD 243.77 million in the previous year[15]. - The group reported a net loss after tax of HKD 22.41 million, compared to a profit of HKD 57.79 million in the previous year, marking a significant decline[16]. - The asset management segment's operating income was HKD 74.54 million, down 15% from HKD 87.27 million in the previous year[18]. - The corporate finance segment's operating income decreased by 63% to HKD 13.54 million, down from HKD 36.12 million in the previous year[20]. - The sales and trading segment's operating income fell 41% to HKD 48.19 million, compared to HKD 81.89 million in the previous year[22]. - The group’s share of profits from associates and a joint venture was HKD 6.46 million, an 88% decline from HKD 51.91 million in the previous year[19]. - The group completed five offshore USD bond issuance projects totaling USD 1.944 billion, a decrease of 59% year-on-year[20]. Management and Governance - The company has a strong management team with diverse backgrounds in finance and investment banking, enhancing its operational capabilities[40][41]. - The company is committed to maintaining high standards of corporate governance and compliance through its independent directors[43]. - The board of directors consists of three executive directors and three independent non-executive directors, meeting the minimum requirements set by the listing rules[54]. - The company has adhered to the corporate governance code throughout the fiscal year 2022, with the board holding two regular meetings instead of the required four[52]. - The company is committed to maintaining high standards of corporate governance, aligning with the Hong Kong Stock Exchange's listing rules[51]. Risk Management - The company recognizes ongoing geopolitical risks and the impact of U.S. interest rate hikes on market sentiment, which may affect investment appetite[26]. - The company is committed to maintaining a robust risk management framework while increasing business volume and market share[29]. - The Board of Directors is responsible for overseeing the company's risk tolerance and regularly reviewing the adequacy of resources related to accounting, internal audit, and risk management[97]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of stakeholder feedback in shaping its environmental, social, and governance (ESG) strategies[121]. - The board of directors is responsible for overseeing ESG matters and ensuring the integrity of the ESG report[120]. - Total greenhouse gas emissions decreased by 12.9% from 299.38 tons in 2021 to 260.83 tons in 2022, achieving the reduction target for 2022[134]. - The company has implemented a series of initiatives to reduce paper consumption, such as promoting electronic statements and developing internal management systems for paperless operations[131]. - The company aims to reduce greenhouse gas emissions by encouraging employees to use video or phone conferencing instead of business flights, resulting in a further decrease in emissions compared to 2021[126]. Employee Development and Welfare - The total training hours for employees in the year exceeded 2,900 hours, emphasizing the company's investment in employee development[166]. - The company has implemented various health and safety measures, including providing medical insurance and annual health check-ups to improve employee health levels[162]. - The company offers a wide range of employee benefits, including comprehensive medical and life insurance, as well as educational subsidies[152]. - The company actively promotes a work-life balance through regular social and recreational activities for employees[152]. Community Engagement - The company received the "2022 Hong Kong Volunteer Award - Corporate (Volunteer Hours) Top Ten Highest Hours" from the Volunteer Development Bureau, recognizing its community contributions[116]. - The company participated in community volunteer service for a total of 375 hours with 57 volunteers during the reporting period[187]. - The company has been awarded the "Caring Company" logo for 17 consecutive years since 2006, reflecting its commitment to corporate social responsibility[116].

Economic Environment - In the first half of 2022, the U.S. inflation rate, as measured by the core Personal Consumption Expenditures (PCE) index, rose by 4.7% year-on-year, remaining near a 40-year high[5]. - The Federal Reserve raised interest rates by a total of 1.5% in the first half of 2022, with expectations to increase rates above 3% by the end of the year[5]. - The U.S. dollar index increased by 9.4% in the first half of 2022, reaching a high of 105.79 in mid-June, the highest level since January 2003[6]. - The external environment for the second half of 2022 remains complex, with economic pressures expected to increase due to inflation and geopolitical tensions[23][24]. - The group recognizes the ongoing challenges in the Chinese economy, including rising commodity prices and tight liquidity in the real estate market, which may impact investor sentiment[27]. Market Performance - The Hang Seng Index closed at 21,860 points at the end of the first half of 2022, down 6.6% from the end of 2021, while the Hang Seng Tech Index fell by 14.1%[12]. - The total turnover of A-shares exceeded RMB 114 trillion in the first half of 2022, representing a year-on-year increase of 6.5%[9]. - The number of new companies listed on the Hong Kong main board in the first half of 2022 was only 26, a significant decrease of 41% compared to 44 in the same period of 2021[13]. - The total issuance of offshore Chinese bonds in the first half of 2022 was USD 95.26 billion, a decrease of 39.1% year-on-year[13]. - The average daily trading volume of Hong Kong stocks in the first half of 2022 was HKD 138.3 billion, a decrease of 26.5% year-on-year[12]. Financial Performance - The group reported a net loss of HKD 39.47 million for the first half of 2022, compared to a net profit of HKD 53.32 million in the same period last year, representing a significant decline[16]. - Total revenue for the first half of 2022 was HKD 65.25 million, down 53% from HKD 137.46 million in the previous year, with operating income decreasing by 41% to HKD 66.31 million[16]. - The asset management segment's operating income decreased by 25% to HKD 31.04 million, while profit dropped 57% to HKD 16.55 million due to market conditions and project exits[18]. - The corporate finance segment's operating income fell by 48% to HKD 10.81 million, with a loss of HKD 5.45 million compared to a loss of HKD 2.46 million in the previous year[20]. - The sales and trading segment's operating income decreased by 51% to HKD 24.31 million, with a loss of HKD 6.53 million compared to a profit of HKD 13.52 million last year[21]. Cost Management - The group managed to reduce personnel costs by 45% year-on-year, contributing to a 22% decrease in operating costs to HKD 67.13 million[16]. - The company incurred financing costs of HKD 7,461,000, a decrease of 35% from HKD 11,599,000 in the prior year[76]. - Employee costs amounted to HKD 33,283,000, down from HKD 60,963,000, reflecting a reduction of 45.5%[76]. - Other operating expenses increased to HKD 33,848,000 from HKD 24,697,000, representing a rise of 37%[76]. Strategic Initiatives - The group plans to continue exploring innovative cross-border asset management opportunities despite the challenges posed by the pandemic and market conditions[18]. - The group aims to enhance collaboration with Xinda Securities, focusing on integrated financial services, including USD bond issuance for domestic institutions and Hong Kong IPOs[29]. - The group has received a Type 4 license from the Hong Kong Securities and Futures Commission in July 2022, allowing it to diversify into wealth management products[30]. - The group plans to develop asset management products, including problem asset funds and merger funds, to capitalize on market opportunities[30]. Shareholder Returns - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2022, compared to no dividend for the same period in 2021[39]. - The company paid dividends amounting to HKD 12,824,000 during the period, marking a commitment to return value to shareholders despite the losses[95]. Compliance and Governance - The company has complied with all provisions of the Corporate Governance Code during the reporting period, except for one instance of non-attendance by a non-executive director at the annual general meeting[63]. - The audit committee has reviewed the accounting principles and practices adopted by the group and discussed internal controls and financial reporting matters[68]. - The company has confirmed compliance with the standard code for securities transactions by directors for the six months ending June 30, 2022[65]. - The company has adopted appropriate corporate governance practices to enhance transparency[64]. Asset and Liability Management - The company's total assets as of June 30, 2022, were HKD 1,683,816,000, an increase from HKD 1,583,155,000 at the end of 2021[82]. - Current liabilities rose to HKD 1,253,062,000 from HKD 524,681,000, indicating a significant increase in short-term obligations[82]. - The company's cash and cash equivalents stood at HKD 825,602,000, up from HKD 781,142,000, showing a slight increase in liquidity[82]. - The equity attributable to equity holders decreased to HKD 953,318,000 from HKD 1,022,640,000, reflecting a decline of approximately 6.8%[88]. Investment Performance - The company reported a significant foreign exchange loss of HKD 6,544,000 for the six months ended June 30, 2022, compared to a foreign exchange gain of HKD 2,628,000 in the prior year[135]. - The company recorded a loss of HKD 4,517,000 from the sale of debt instruments classified as fair value through other comprehensive income, compared to a gain of HKD 3,409,000 in the previous year[93]. - The total recognized loss for the group in the six months ended June 30, 2022, was HKD 14,151,000 from Hanstone, HKD 15,038,000 from CPIAR Fund, and HKD 1,302,000 from CIIH, indicating a challenging investment environment[170][171][172]. Receivables and Credit Risk - As of June 30, 2022, total receivables amounted to HKD 498,927,000, an increase of 13% from HKD 441,540,000 as of December 31, 2021[183]. - Receivables from corporate finance decreased to HKD 10,573,000, down 29% from HKD 15,031,000 in the previous period[185]. - Receivables from securities brokerage increased significantly to HKD 223,999,000, up 58% from HKD 141,392,000[185]. - The expected credit loss provision for debt instruments measured at fair value through other comprehensive income was HKD 22,438,000 as of June 30, 2022, compared to HKD 18,564,000 as of December 31, 2021[177].

Financial Performance - In 2021, the company's revenue increased by 29% compared to 2020, reaching HKD 3,289 million[30] - In 2021, the total revenue of the company was HKD 243.77 million, a decrease of 17% compared to HKD 292.45 million in 2020[34] - The company's net profit after tax for the year was HKD 57.79 million, down 31% from HKD 83.67 million in the previous year[35] - The asset management segment reported operating income of HKD 87.27 million, an increase of 22% from HKD 71.48 million in 2020[36] - The corporate finance segment's operating income fell by 48% to HKD 36.12 million, down from HKD 68.90 million in the previous year, resulting in a loss of HKD 6.17 million[38] - The sales and trading segment's operating income increased by 13% to HKD 81.89 million, up from HKD 72.76 million in 2020, with commission income rising to HKD 59.74 million[39] - The company reported a significant decline in new IPOs, with only 98 new stocks listed in 2021, raising HKD 328.9 billion, down 36% and 18% year-on-year respectively[30] Market Conditions - The average daily trading volume in 2021 was HKD 166.7 billion, a 29% increase from HKD 129.5 billion in 2020[30] - The Hong Kong GDP grew by 8.0% year-on-year in Q1 2021, ending six consecutive quarters of decline[29] - The unemployment rate improved to 5.4%, down 0.9 percentage points, benefiting from improved consumer sentiment[29] - The Hang Seng Index fell by 14.1% in 2021, while the Hang Seng Tech Index and the National Enterprises Index dropped by 32.7% and 23.3% respectively, marking the worst performance among major global markets[30] - The total net inflow of southbound funds in 2021 was HKD 454.4 billion, a decrease of 32% compared to 2020[30] - The company anticipates continued economic recovery in Hong Kong as COVID-19 measures are gradually relaxed[29] - The outlook for 2022 indicates potential economic expansion in Hong Kong, but growth may be hindered by uncertainties related to local pandemic developments[40] Strategic Initiatives - The company plans to leverage the easing of real estate policies in mainland China to support market recovery[30] - The company plans to explore innovative cross-border distressed asset businesses and expand its overseas asset management services[36] - The group plans to enhance integration with Cinda Securities to facilitate cross-border financial services, focusing on USD bond issuance and Hong Kong IPOs[45] - The group anticipates external economic conditions to improve, aiming to leverage market opportunities to enhance performance and deliver returns to shareholders[46] - The group expects to see increased infrastructure investment in mainland China, reflecting a proactive approach to stabilize economic growth[43] - The group recognizes the ongoing pressure on mainland China's economy due to demand contraction and supply shocks, with policies expected to focus on "stabilizing growth" and "broad monetary and credit" measures[43] Corporate Governance - The company has maintained compliance with the corporate governance code throughout the fiscal year 2021[74] - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, complying with the minimum requirements of the listing rules[76] - The chairman and CEO roles are separated to ensure a balance of power and avoid concentration of authority[79] - The company emphasizes a culture of open and active discussion among board members to ensure independent judgment and advice[80] - The independent non-executive directors confirmed their independence for the fiscal year 2021[80] - The company has a diverse board with members possessing extensive financial and professional knowledge[78] - The executive management committee is responsible for executing the policies set by the board[75] - The company has established policies and procedures in line with the corporate governance code[73] - The board of directors held regular meetings, with attendance rates for executive directors ranging from 75% to 100%[84] Employee Development and Diversity - The company emphasizes talent development and has established an incentive mechanism to set annual performance and work goals for departments, with assessments conducted mid-year and year-end to determine bonuses[50] - The company provides employees with training allowances and study leave for professional exams, highlighting its commitment to employee development[50] - The employee gender ratio remained balanced at approximately 1:1 as of December 31, 2021, reflecting the company's commitment to workplace diversity[104] - The company has achieved gender diversity, with both male and female directors, and will continue to uphold the effectiveness of the diversity policy[103] - A total of over 2,060 hours of training were provided to employees during the year[182] - The average training duration for male employees was 15.09 hours, while for female employees it was 15.65 hours[187] Environmental Responsibility - The company has been recognized for its corporate social responsibility efforts, receiving the "Caring Company" logo for 16 consecutive years since 2006[138] - The total greenhouse gas emissions decreased by 3.8% in 2021 compared to 2020, achieving the reduction target for the year[155] - Scope 1 direct greenhouse gas emissions from vehicles were 4.08 tons in 2021, down from 4.51 tons in 2020[155] - Scope 2 indirect greenhouse gas emissions from electricity consumption were 262.51 tons in 2021, slightly lower than 265.3 tons in 2020[155] - Scope 3 other indirect greenhouse gas emissions from paper consumption increased to 18.74 tons in 2021 from 18.18 tons in 2020[155] - The company aims to reduce paper consumption by approximately 1% to 3% in the upcoming year[158] - The company has implemented measures to encourage electronic communication, resulting in a significant reduction in air travel-related emissions[147] - The company plans to maintain business travel-related greenhouse gas emissions at a low level in 2022, similar to 2021[148] Risk Management and Compliance - The group is committed to maintaining an effective internal control and risk management system to safeguard assets[120] - The Board regularly reviews the effectiveness of the internal control and risk management systems, ensuring compliance with relevant laws and regulations[121] - The group emphasizes the importance of ethical standards and encourages reporting of misconduct, ensuring confidentiality[121] - The company has established a qualified supplier database to manage environmental and social risks in the supply chain[190] - The company strictly adheres to the Employment Ordinance and prohibits child labor and forced labor[189] - The company has not reported any non-compliance incidents related to air and greenhouse gas emissions, water pollution, or waste generation in 2021[165]

Market Performance - The US stock market indices rose between 12.5% to 14.4% in the first half of 2021, with the Dow Jones Industrial Average reaching a high of 35,091 points in May[6]. - Hong Kong's GDP grew by 7.9% year-on-year in the first quarter of 2021, with the unemployment rate decreasing to 6.0%[10]. - The average daily trading volume of Hong Kong stocks increased by 60% year-on-year, reaching HKD 1,882 billion in the first half of 2021[11]. - The Shanghai Composite Index rose by 4.3% in the second quarter of 2021, closing at 3,591 points[8]. - The Hang Seng Index closed at 28,827 points at the end of the first half of 2021, reflecting a 5.8% increase from the end of 2020[11]. - The average daily trading amount for northbound trading under the Stock Connect increased by 63% and 33% compared to the first and fourth quarters of 2020, respectively[8]. - The US dollar index fell by 0.9% in the second quarter of 2021 but rose by 2.8% in the first half of the year[6]. Financial Performance - Total revenue for the first half of 2021 was HKD 137.46 million, a slight decrease of 3% compared to HKD 141.02 million in the same period last year[14]. - The group's pre-tax profit for the first half of 2021 was HKD 59.79 million, significantly up from HKD 33.01 million in the previous year[15]. - The net profit for the period was HKD 53,321,000, compared to HKD 27,512,000 in the previous year, representing an increase of 93.7%[74]. - Basic and diluted earnings per share for the company’s equity holders were HKD 8.32, up from HKD 4.14, indicating a growth of 100%[74]. - The company reported revenue of HKD 112,396,000 for the six months ended June 30, 2021, a decrease of 1.04% from HKD 113,573,000 in the same period of 2020[74]. - The total comprehensive income for the period was HKD 41,020,000, compared to HKD 33,831,000 in the previous period, representing an increase of approximately 21.5%[88]. - The company reported a pre-tax profit of HKD 59,786,000, compared to HKD 33,011,000 in the previous period, an increase of approximately 81.1%[94]. Segment Performance - Asset management segment revenue increased by 15% to HKD 41.65 million, compared to HKD 36.24 million in the same period last year[16]. - Corporate finance segment revenue decreased by 52% to HKD 20.94 million, down from HKD 44.01 million year-on-year, resulting in a loss of HKD 2.46 million[19]. - Sales and trading segment revenue rose by 50% to HKD 50.01 million, up from HKD 33.24 million in the previous year, with commission income increasing to HKD 36.86 million[20]. - Revenue from asset management services increased to HKD 41,497 thousand, up 14.5% from HKD 36,159 thousand in the previous year[105]. - Sales and trading business revenue surged to HKD 36,858 thousand, a significant increase of 78.2% compared to HKD 20,655 thousand in 2020[105]. - Corporate finance revenue decreased to HKD 13,144 thousand, down 58.7% from HKD 31,772 thousand in the prior year[103]. Investment and Financing Activities - The group successfully completed three offshore USD bond issuance projects totaling USD 2.51 billion, a 9% increase year-on-year[19]. - As of June 30, 2021, the group had a total of HKD 5.49 billion in available term loan facilities from banks, all of which have been utilized[28]. - The group has utilized HKD 4.1 billion in IPO financing loans as of June 30, 2021, and repaid HKD 10 million of fixed-rate medium-term bonds during the period[28]. - The company received HKD 545,000,000 from bank loans during the period, down from HKD 640,000,000 in the previous year, reflecting a cautious approach to financing[96]. - The net cash inflow from financing activities was HKD 258,522,000, compared to HKD 191,281,000 in the same period last year, indicating improved financing conditions[96]. Employee and Talent Management - The group has a total of 126 employees as of June 30, 2021, with a gender distribution of 59 males and 67 females[31]. - The group emphasizes talent development and retention, offering performance-based incentives and training programs for employees[31]. - Employee costs increased to HKD 60,963,000, a rise of 17.9% from HKD 51,702,000 in the prior period[74]. Shareholder and Dividend Information - No interim dividend was recommended for the six months ended June 30, 2021[38]. - Major shareholder, Cinda Securities, holds 403,960,200 shares, representing 63.00% of the issued share capital[41]. - The company approved a dividend of HKD 19,236,000 for the previous fiscal year, which was fully paid on July 9, 2021[143]. Asset and Liability Management - The company's equity attributable to equity holders increased to HKD 1,010,885,000 from HKD 989,101,000, reflecting a growth of about 2.8%[82]. - The total liabilities increased to HKD 1,155,708,000 from HKD 982,998,000, representing an increase of approximately 17.5%[80]. - The total assets as of June 30, 2021, were HKD 2,739,829, an increase from HKD 2,551,768 as of December 31, 2020[130]. Credit and Receivables Management - The total value of trade and other receivables as of June 30, 2021, was HKD 1,022,498,000, which includes HKD 646,823,000 from receivables from clients[191]. - The overdue balance from securities brokerage receivables was HKD 13,211,000 as of June 30, 2021, indicating a stable credit quality[183]. - The expected credit loss for accounts receivable as of June 30, 2021, is 14,010 thousand HKD, up from 13,557 thousand HKD as of January 1, 2021[200].

Economic Impact of COVID-19 - The global economic activities were severely impacted by the COVID-19 pandemic, with the US GDP contracting by 5.0% in Q1 and 31.4% in Q2 of 2020[19]. - The Eurozone GDP contracted by 3.6% in Q1 and 11.8% in Q2, with the European Central Bank expanding its asset purchase program to €1.85 trillion[20]. - China's GDP grew by 2.3% year-on-year, making it the only major economy to record growth in 2020, following a 6.8% decline in Q1[21]. - Hong Kong's GDP fell by 6.1% year-on-year, marking the largest decline on record, with an unemployment rate of 6.6% at the end of 2020[22]. - The unemployment rate in the retail, accommodation, and food services sectors reached 10.6%, with the restaurant sector's unemployment rate peaking at 13.8%[22]. - The group anticipates a rebound in local GDP by 4.3% in 2021, despite ongoing economic pressures from the COVID-19 pandemic[38]. - The group expects mainland China's economy to grow by 8.4% in 2021, driven by domestic demand, new infrastructure, and foreign trade[41]. Financial Performance - Total revenue for the year was HKD 292.45 million, a decrease of 5% compared to HKD 307.69 million in 2019[26]. - Operating income was HKD 213.02 million, down 18% from HKD 260.38 million in 2019, primarily due to a reduction in the scale of structured product management business[26]. - Other income increased by 68% to HKD 79.43 million, driven by higher investment income and RMB exchange gains[26]. - Pre-tax profit before accounting for associates and a joint venture was HKD 47.81 million, up 44% from HKD 33.17 million in 2019[26]. - Profit attributable to equity holders increased by 62% to HKD 83.67 million, compared to HKD 51.56 million in 2019, marking the best performance since the acquisition by China Cinda Group[27]. - Asset management segment revenue was HKD 87.77 million, up 5% from HKD 83.68 million in 2019, maintaining stable operations[29]. - Corporate finance business revenue rose 19% to HKD 68.90 million from HKD 57.70 million in 2019, with a profit increase of 22% to HKD 16.02 million[31]. Market Activity - The Nasdaq index increased by 43.6% year-on-year, closing at 12,888.28 points, while the S&P 500 and Dow Jones indices rose by 16.3% and 7.3%, respectively[19]. - The average daily trading volume in the Hong Kong stock market increased by 49% year-on-year to HKD 129.5 billion[23]. - The number of new IPOs in the year reached 154, with total fundraising amounting to HKD 397.5 billion, a 26.5% increase year-on-year[23]. - The total issuance of Chinese dollar bonds in 2020 was USD 217.7 billion, with net financing of USD 110.8 billion, a decrease of 4.2% and 9.4% respectively compared to 2019[25]. Corporate Governance - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors, meeting the minimum requirements set by the listing rules[62]. - The company has maintained compliance with the corporate governance code throughout the fiscal year 2020[60]. - The independent non-executive directors possess appropriate accounting or related financial management expertise, ensuring effective oversight[62]. - The executive management committee is responsible for executing the policies set by the board of directors[61]. - The company is committed to achieving and maintaining high standards of corporate governance[59]. - The board of directors is responsible for the overall leadership and supervision of the company[61]. - The company has appointed independent non-executive directors with extensive experience in finance and accounting[63]. Environmental and Social Responsibility - The company has been recognized for its corporate social responsibility efforts, receiving the "Caring Company" logo for 15 consecutive years since 2006[119]. - The company has been a member of the World Wildlife Fund Hong Kong since October 2011, supporting conservation and educational initiatives[119]. - Total greenhouse gas emissions decreased significantly by 73.95% from 1,194.38 tons in 2019 to 311.17 tons in 2020, primarily due to reduced air travel and effective measures taken by the company[135]. - The company actively participates in environmental initiatives such as "Earth Hour" and "Green Low Carbon Day" to promote sustainability[147]. - The company has established policies for supplier selection and management, prioritizing suppliers with strong environmental and social performance[172]. Employee Development and Welfare - The company provides a wide range of employee benefits, including comprehensive medical insurance and life insurance[150]. - The company has established written human resources policies to regulate employee compensation, recruitment, and promotion[149]. - The company provided over 1,600 hours of training for employees during the year[164]. - The company encourages continuous professional development through various training programs and workshops[165]. - The new employee mentoring program was launched to enhance communication and training between mentors and new hires[165]. Financial Management and Dividends - The company proposed a final dividend of HKD 0.03 per ordinary share for the year ended December 31, 2020, compared to no dividend in 2019[186]. - The company's distributable reserves as of December 31, 2020, amounted to HKD 117,334,000, an increase from HKD 34,123,000 in 2019[192]. - The company did not declare an interim dividend for the year, consistent with 2019[186]. - The company extended the maturity of HKD 10,000,000 of its bonds by two years during the year[190].