Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of HKD 146,216,000, a decrease of 59.5% compared to HKD 361,010,000 for the same period in 2023[3] - Interest income calculated using the effective interest method was HKD 73,970,000, down from HKD 111,837,000, representing a decline of 33.9%[3] - The company recorded a loss before tax of HKD 37,012,000, an improvement from a loss of HKD 70,894,000 in the previous year, indicating a reduction in losses by 47.8%[3] - The net loss for the period was HKD 37,316,000, compared to a net loss of HKD 71,344,000 in the prior year, reflecting a 47.7% decrease in losses[4] - Basic and diluted loss per share was HKD 2.39, an improvement from HKD 4.57 per share in the same period last year[3] - Total comprehensive loss for the period was HKD 37,424,000, compared to HKD 48,474,000 in the previous year, showing a decrease of 22.8%[4] Assets and Liabilities - As of June 30, 2024, total current assets amounted to HKD 11,652,405,000, down from HKD 12,446,464,000 at the end of 2023, a decline of 6.4%[5] - Current liabilities totaled HKD 9,016,035,000, a decrease from HKD 10,014,755,000, indicating a reduction of 9.9%[6] - The company's total assets less current liabilities stood at HKD 2,778,295,000, slightly down from HKD 2,837,107,000, a decrease of 2.1%[6] - The company’s equity attributable to ordinary shareholders was HKD 2,752,754,000, compared to HKD 2,790,178,000 at the end of 2023, reflecting a decrease of 1.4%[6] Revenue Sources - For the six months ended June 30, 2024, the total revenue from external customers was HKD 202,193,000, a decrease from HKD 315,416,000 in the same period of 2023, representing a decline of approximately 36%[10] - The total income from commission and fee income for the six months ended June 30, 2024, was HKD 95,895,000, down from HKD 121,268,000 in the same period of 2023, reflecting a decrease of about 21%[12] - Interest income from banks and other sources for the six months ended June 30, 2024, was HKD 112,377,000, compared to HKD 144,335,000 in the previous year, marking a decline of approximately 22%[13] - Commission and fee income decreased by 21% to HKD 95.895 million, while interest income fell by 22% to HKD 112.377 million compared to the same period last year[30] Investment Performance - The company reported a significant loss in the investment business segment, with net losses from financial assets amounting to HKD 62,056,000 for the six months ended June 30, 2024, compared to a gain of HKD 95,407,000 in the previous year[14] - The investment business saw a turnaround with a profit of HKD 5 million, compared to a loss of HKD 28 million in the previous year, marking a 118% improvement[32] Market Conditions - The average daily trading volume in the Hong Kong market decreased by 4.42% year-on-year to HKD 110.4 billion in the first half of 2024[27] - The number of new IPOs in the Hong Kong market decreased by 9.09% year-on-year, with 30 new listings in the first half of 2024 compared to 33 in the same period of 2023[27] Strategic Initiatives - The company’s strategy focuses on enhancing cross-border business collaboration and improving risk management capabilities amid a challenging economic environment[28] - The company aims to expand its underwriting project reserves and actively engage in merger and acquisition advisory projects to diversify revenue sources[37] - The company plans to leverage policy opportunities and expand its business in the Guangdong-Hong Kong-Macao Greater Bay Area[45] Employee and Operational Metrics - The total number of full-time employees as of June 30, 2024, was 270, down from 283 as of December 31, 2023, with employee costs totaling approximately HKD 1.34 billion[55] Compliance and Governance - The company has maintained compliance with all applicable corporate governance codes, except for a specific provision regarding the separation of roles between the chairman and CEO[57] - The audit committee was reconstituted to comply with listing rules after the appointment of a new independent non-executive director on June 28, 2024[60]

Financial Performance - The company's revenue for 2023 was impacted by a 39.2% year-on-year decrease in fundraising amount from IPOs, totaling RMB 356.4 billion[8]. - In 2023, the company's revenue increased by 45% year-on-year, reaching HKD 618.2 million, compared to HKD 426.3 million in 2022[15]. - The company recorded a pre-tax loss of HKD 125 million and a loss attributable to shareholders of HKD 192 million, an improvement from a pre-tax loss of HKD 871 million in 2022[15]. - Commission and fee income decreased by 5% year-on-year to HKD 224.9 million, while interest income increased by 38% to HKD 271.6 million[16]. - Investment business revenue turned positive at HKD 121.7 million, compared to a loss of HKD 6.2 million in the previous year[16]. - Wealth management business revenue increased by 10%, with commission and fee income decreasing by 35% to HKD 65.6 million[21]. - The company achieved a 49% increase in corporate finance business commission and fee income, reaching HKD 70.0 million[25]. - Investment income from corporate finance activities was HKD 101.4 million, a significant increase from a loss of HKD 11.9 million in 2022[25]. - The company completed 126 bond projects during the year, including 124 underwriting projects and 2 advisory projects[27]. - In 2023, the total revenue from investment business reached HKD 0.2 billion, an increase of 284% year-on-year[33]. - The stock trading revenue increased by 13% year-on-year to HKD 1.07 billion, despite a challenging market environment[33]. - The client bond trading volume reached USD 2.55 billion, a year-on-year growth of 59%[32]. Economic Outlook - The overall GDP growth for 2023 was 5.2%, with retail sales of consumer goods increasing by 7.2% year-on-year, indicating a recovery trend[8]. - The company anticipates a GDP growth rate of 4.5%-5.0% for 2024, supported by increased government efforts to stabilize growth[11]. - The Hang Seng Index fell by 13.82% in 2023, while net inflow from southbound funds decreased by 17.5% to HKD 318.8 billion[9]. Business Strategy and Development - The company plans to enhance its core competitiveness and revenue-generating capabilities through business transformation and new product development[12]. - The company aims to improve customer loyalty and drive fee income growth by optimizing its comprehensive service capabilities[12]. - The company intends to leverage domestic brand advantages to promote business development through domestic and international collaboration[12]. - The company is focused on increasing the application of financial technology to improve operational efficiency and management capabilities[12]. - The company is committed to building a talent team and optimizing human resource structure to enhance its competitiveness in the market[12]. - The company plans to expand its underwriting project reserves and participate in more M&A advisory projects[25]. - The company aims to enhance its product offerings and client service through innovation and market expansion strategies[37]. Risk Management - The company will strengthen its risk management framework and enhance monitoring of core risk limit indicators and major investment projects[12]. - The company is focused on enhancing its risk management capabilities and improving internal control systems[15]. - The company closely monitors foreign exchange risks, with minimal exposure due to its primary operations in HKD and USD[50]. Environmental, Social, and Governance (ESG) - The company has established an ESG governance structure, with an ESG committee comprising three executive directors and two independent non-executive directors[63]. - The company identified 18 key ESG issues for 2023, including greenhouse gas emissions, employee welfare, and compliance with laws and regulations[66]. - The company emphasizes responsible and sustainable business practices, considering the long-term impact of ESG issues on stakeholders[56]. - Direct greenhouse gas emissions from company vehicles in 2023 amounted to 4.89 tons of CO2, a reduction of approximately 14.5% compared to the previous year[68]. - Indirect greenhouse gas emissions from electricity consumption in 2023 were 501.32 tons of CO2, representing an 8.89% decrease from 2022[71]. - Total greenhouse gas emissions (Scope 1 and 2) for 2023 were 506.21 tons, down from 555.97 tons in 2022, marking a reduction of approximately 8.9%[72]. - The company aims to reduce direct greenhouse gas emissions from company vehicles by 15% by the end of 2025, targeting a total of 12.48 tons[69]. - Energy consumption in 2023 totaled 748.89 MWh, a decrease from 797.08 MWh in 2022, reflecting a continued effort to improve operational efficiency[77]. - The company has implemented energy-saving measures, including the installation of energy-efficient systems in new offices, to enhance energy usage efficiency[76]. - The company plans to achieve a 15% reduction in per capita paper usage by the end of 2025, targeting a reduction to 0.019 tons[69]. - The company has maintained high levels of corporate governance, adhering to all applicable code provisions under the Hong Kong Stock Exchange's Listing Rules[143]. Employee Management - The total number of full-time employees as of December 31, 2023, was 283, down from 315 in 2022, with total employee costs amounting to approximately HKD 2.49 billion (2022: HKD 2.98 billion)[53]. - Employee turnover rate decreased to 26% in 2023 from 36% in 2022[90]. - Total training hours for employees increased to 48.95 hours in 2023, up from 28.5 hours in 2022, representing a 71.5% increase[97]. - Percentage of employees receiving training rose to 14% in 2023 from 10.5% in 2022[97]. - The company has established strict internal policies and monitoring measures to ensure compliance with ESG-related laws and regulations[113]. Corporate Governance - The board composition includes a balanced mix of executive and non-executive directors, ensuring independent judgment in decision-making[148]. - The company has adopted a board diversity policy, considering various factors such as skills, knowledge, and professional experience in board member selection[159]. - The board ensures that all directors have access to necessary information to make informed decisions and fulfill their responsibilities[190]. - The board has established various committees, including an Executive Committee and a Management Committee, to oversee significant business strategies and daily operations[179]. - The company has formalized delegation of authority arrangements, ensuring all directors understand their responsibilities[178]. - The board has provided a balanced, clear, and comprehensive assessment of the company's performance, situation, and prospects[195].

Revenue and Income Performance - Revenue for the year ended December 31, 2023, was HK$618,215 thousand, compared to HK$426,340 thousand in 2022, representing a significant increase[5] - Revenue increased by 45% year-on-year from HKD 426 million in 2022 to HKD 618 million in 2023[58] - The company's total revenue for 2023 was 127,136 thousand HKD, a 28% increase compared to 2022[131] - Interest income increased from 197,045 thousand HKD in 2022 to 271,626 thousand HKD in 2023, accounting for 44% of total income[33] - Interest income increased by 38% from HKD 171.3 million in 2022 to HKD 235.7 million in 2023[60] - The company's total interest income increased by 38% year-on-year, reaching 272 million HKD in 2023[88] - Investment business turned profitable, with a gain of 121,727 thousand HKD in 2023 compared to a loss of 6,211 thousand HKD in 2022[33] - Investment business income turned negative, with a loss of HKD 71,000 in 2023 compared to a profit of HKD 405,000 in 2022[60] - Investment income from the company's own funds reached HKD 101 million[92] - The company's investment business achieved a turnaround, with revenue of 122 million HKD in 2023, compared to a loss in the previous year[88] - The company's total investment business income for 2023 was 20,370 thousand HKD, a significant increase from 5,298 thousand HKD in 2022[131] - Corporate finance fee and commission income increased by 49% from HKD 47 million in 2022 to HKD 70 million in 2023[62] - Corporate finance business fees and commission income increased by 49% year-on-year to HKD 70.03 million[92] - Investment business income in corporate finance surged by 951% from a loss of HKD 11.9 million in 2022 to a profit of HKD 101.4 million in 2023[62] - Total income from corporate finance and investment business increased by 389% from HKD 35.1 million in 2022 to HKD 171.5 million in 2023[62] - Institutional services and trading business investment income rose 284% year-on-year to HKD 20 million[96] - Stock business revenue increased by 13% year-on-year to HKD 107 million[97] - Fixed income sales increased, with client bond trading volume reaching USD 2.55 billion, up 59% year-on-year[95] Losses and Financial Health - The company reported a net loss of HK$192,454 thousand for 2023, a substantial improvement from the net loss of HK$879,924 thousand in 2022[5] - The company's total comprehensive loss for the year was HK$169,705 thousand in 2023, compared to HK$892,150 thousand in 2022, showing a significant reduction in losses[11] - Pre-tax loss for 2023 was HKD 125 million, compared to a pre-tax loss of HKD 871 million in 2022[58] - Shareholders' loss attributable to the company was HKD 192 million in 2023, down from HKD 880 million in 2022[58] - The company's pre-tax loss has been deducted, indicating a challenging financial performance[127] - The company's basic and diluted loss per share improved to HK$0.1233 in 2023 from HK$0.5636 in 2022, reflecting a reduction in losses per share[5] - The company's total liabilities decreased to HK$10,014,755 thousand in 2023 from HK$13,480,141 thousand in 2022, indicating improved financial health[12] - The company's liquidity ratio improved to 124% in 2023, up from 118% in 2022, while the debt-to-equity ratio decreased to 23% from 50%[73] - The company's outstanding short-term bank loans decreased to 234 million HKD in 2023 from 1.489 billion HKD in 2022[73] - The company's issued notes decreased to 417 million HKD in 2023 from 818 million HKD in 2022[73] - The company's issued bonds decreased to zero in 2023 from 1.559 billion HKD in 2022[73] - The company's total equity attributable to ordinary shareholders was 2.79 billion HKD as of December 31, 2023, down from 2.96 billion HKD in 2022[71] - The company's total equity as of December 31, 2023, was 2,790,178 thousand HKD, a decrease from 2,959,883 thousand HKD in 2022[136] Asset and Liability Management - Total assets decreased to HK$12,446,464 thousand in 2023 from HK$15,890,754 thousand in 2022, reflecting a reduction in asset base[12] - The company's net current assets increased slightly to HK$2,431,709 thousand in 2023 from HK$2,410,613 thousand in 2022[12] - The company's property, plant, and equipment increased to HK$9,882 thousand in 2023 from HK$5,977 thousand in 2022, indicating investment in fixed assets[12] - The company's deferred tax assets decreased to HK$26,743 thousand in 2023 from HK$89,326 thousand in 2022, reflecting changes in tax positions[12] - The company's cash and bank balances increased to HK$1,287,243 thousand in 2023 from HK$1,238,496 thousand in 2022, indicating improved liquidity[12] - The company held cash of HKD 1.287 billion and financial assets at fair value through profit or loss of HKD 3.663 billion as of December 31, 2023[103] - Unused bank credit facilities totaled HKD 8.001 billion as of December 31, 2023[103] - The company's accounts payable decreased to 5,945,953 thousand HKD in 2023 from 6,523,725 thousand HKD in 2022[146] - The company's cash customer receivables and margin loan balances were 22 million HKD and 1.074 billion HKD respectively as of December 31, 2023[145] - Margin loan balances to corporate clients accounted for 42% of total margin loans, up from 35% in 2022[107] Receivables and Credit Management - The company's total receivables decreased from 2,835,339 thousand HKD in 2022 to 2,697,520 thousand HKD in 2023, reflecting a reduction in expected credit losses[24] - Receivables from securities trading decreased from 2,639,111 thousand HKD in 2022 to 2,305,273 thousand HKD in 2023, with a notable drop in receivables from cash clients and other brokers[24] - Receivables from corporate financing and advisory services increased significantly from 649,404 thousand HKD in 2022 to 1,009,647 thousand HKD in 2023[24] - Receivables due within one month increased from 1,154,444 thousand HKD in 2022 to 1,381,521 thousand HKD in 2023, indicating improved short-term liquidity[26] - Receivables from the company's ultimate holding company increased significantly, with 14,297 thousand HKD in 2023 compared to 5,939 thousand HKD in 2022 for brokerage services[27] Fee and Commission Income - The company's fee and commission income decreased from 235,506 thousand HKD in 2022 to 224,862 thousand HKD in 2023, representing a drop from 55% to 36% of total income[33] - Fee and commission income decreased by 35% from HKD 101.4 million in 2022 to HKD 65.6 million in 2023[60] - The company's wealth management business revenue increased by 10%, with fee and commission income decreasing by 35% from 101 million HKD in 2022 to 65.58 million HKD in 2023[90] - The company's asset management business saw a 2% decrease in fee and commission income, from 18,679 thousand HKD in 2022 to 18,377 thousand HKD in 2023[68] - The company's asset management business saw a slight decline in fee and commission income due to the exit of some passively managed fund products[143] Business Operations and Strategy - The A-share IPO market saw a 39.2% year-on-year decline in fundraising, with 313 new listings raising 356.4 billion RMB in 2023[31] - The company upgraded its internet stock trading system and optimized its wealth management platform, enhancing the "Wynner" and "Wynner League" service systems[35] - The company completed 126 bond projects in 2023, including 124 underwriting projects and 2 financial advisory projects[64] - The company expanded its investor base by nearly 400 domestic and international investors[95] - The company plans to focus on new energy, integrated circuits, and medical technology sectors for private equity business[99] - The company plans to focus on business transformation, risk management, and financial technology applications in 2024[150] - The company's GDP growth in 2023 was 5.2%, supported by a rebound in consumption and resilient manufacturing investment[129] Employee and Dividend Information - The company's full-time employees decreased to 283 in 2023 from 315 in 2022, with total employee costs of 249 million HKD[152] - The company's board of directors has decided not to recommend the payment of a final dividend for the year ended December 31, 2023 (2022: zero Hong Kong cents per ordinary share)[159]

Financial Performance - The company reported a revenue of HKD 361,010,000 for the six months ended June 30, 2023, representing a 28.4% increase from HKD 281,338,000 in the same period of 2022[8]. - The company incurred a pre-tax loss of HKD 70,894,000, an improvement compared to a loss of HKD 127,526,000 in the previous year, reflecting a 44.4% reduction in losses[8]. - The net loss attributable to equity holders of the company was HKD 71,344,000, compared to HKD 123,430,000 in the prior year, indicating a 42.3% decrease in net losses[8]. - Total comprehensive loss for the period was HKD 48,474,000, significantly improved from HKD 157,036,000 in the same period last year, showing a 69.1% reduction[9]. - Cash generated from operating activities was HKD 735,506,000, a turnaround from cash used of HKD 1,044,737,000 in the prior year, reflecting a positive cash flow shift[20]. - The basic and diluted loss per share for the six months ended June 30, 2023, was HKD 4.57, an improvement from HKD 7.91 in the previous year[39]. - The company reported a significant increase in interest income from banks and other sources, totaling HKD 93,112,000 for the six months ended June 30, 2023, compared to HKD 14,255,000 in 2022[31]. - The company reported a total of HKD 144,335,000 in interest income from various sources for the six months ended June 30, 2023, compared to HKD 93,851,000 in the previous year[31]. Assets and Liabilities - Non-current assets decreased to HKD 432,495,000 as of June 30, 2023, down from HKD 625,929,000 at the end of 2022, representing a 30.9% decline[12]. - Current assets totaled HKD 15,223,627,000, slightly down from HKD 15,890,754,000 at the end of 2022, indicating a 4.2% decrease[12]. - The company's total liabilities decreased to HKD 12,686,407,000 from HKD 13,480,141,000, reflecting a 5.9% reduction in current liabilities[12]. - The net asset value of the company was HKD 2,911,409,000 as of June 30, 2023, compared to HKD 2,959,883,000 at the end of 2022, showing a slight decrease of 1.6%[13]. - The company experienced a decrease in other financial assets by HKD 372,545,000 compared to HKD 697,775,000 in the previous year, indicating a 46.4% reduction[18]. - The fair value of debt securities measured at fair value through other comprehensive income decreased to HKD 74,789,000 as of June 30, 2023, from HKD 251,968,000 as of December 31, 2022, a decline of 70.3%[42]. - The total fair value of financial assets measured at fair value through profit or loss increased to HKD 6,147,303,000 as of June 30, 2023, compared to HKD 5,667,984,000 as of December 31, 2022, indicating an increase of approximately 8.4%[59]. Operational Strategy and Future Outlook - The company plans to continue focusing on enhancing its operational efficiency and exploring new market opportunities to drive future growth[7]. - The company is currently evaluating the impact of new accounting standards that will take effect from January 1, 2024, but does not expect significant effects on the consolidated financial statements[27]. - The company plans to continue developing low-risk, light-capital businesses and enhance its cross-border asset management platform[117]. - The company aims to expand its alternative asset management capabilities and enhance brand influence while focusing on regulatory policies and cross-border asset management needs[113]. - The company anticipates global economic recession pressures to gradually spread from developed markets to emerging markets in the second half of the year[114]. - The future outlook includes a positive growth forecast, with performance guidance suggesting a potential increase of 15% in revenue for the next quarter[149]. - Market expansion strategies are being implemented, targeting new geographic regions to increase market share[149]. Employee and Operational Costs - The company reported a decrease in short-term employee benefits to HKD 27,401,000 for the six months ended June 30, 2023, down from HKD 37,652,000 in the same period of 2022, representing a decline of approximately 27.5%[69]. - Employee costs for the period amounted to approximately HKD 1.34 billion, unchanged from the same period in 2022[134]. - The total number of full-time employees as of June 30, 2023, was 303, down from 315 as of December 31, 2022[134]. Market Conditions and Business Environment - The overall financing environment remained tight, with a contraction in the issuance of offshore Chinese bonds due to ongoing interest rate hikes by the Federal Reserve[84]. - The macroeconomic environment in mainland China showed signs of pressure in the second quarter, with retail sales growth of 8.2% and fixed asset investment growth of 3.8% in the first half of 2023[81]. - The average daily trading volume in Hong Kong stocks decreased by 16.5% year-on-year to HKD 115.5 billion, reflecting reduced investor sentiment amid market volatility[92]. Investment and Financial Activities - The company completed 50 offshore bond projects, assisting clients in raising approximately USD 4.099 billion from state-owned enterprises and USD 1.893 billion from financial institutions[101]. - The company recorded an investment business loss of HKD 13.74 million, a decrease of 129% year-on-year due to high funding costs and a contraction in bond scale[108]. - The margin loan balance was HKD 11.95 billion as of June 30, 2023, decreased from HKD 13.09 billion as of December 31, 2022[127]. - 41% of the margin loan balance was lent to corporate clients, an increase from 35% as of December 31, 2022[128]. Compliance and Governance - The company maintained compliance with all applicable corporate governance codes during the six months ending June 30, 2023[143]. - No major events affecting the company occurred after June 30, 2023[133].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 截至二零二三年六月三十日止六個月之中期業績 申萬宏源（香港）有限公司（「本公司」）之董事局（「董事局」）欣然公佈，本公司及其附屬 公司（「本集團」）截至二零二三年六月三十日止六個月之未經審核簡明綜合業績連同上年度同 期之比較數字。 簡明綜合損益表 截至六月三十日止六個月 二零二三年 二零二二年 (未經審核) (未經審核) 附註 千港元 千港元 收入 3 361,010 281,338 — 使用實際利率法計算之利息收入 111,837 55,297 — 於香港財務報告準則第 15號範圍內之客戶合約收入 121,268 136,814 — 源自其他來源收入 127,905 89,227 其他虧損，淨額 3 (45,594) (35,166) 佣金費用 (19,739) (29,770) 僱員福利費用 (133,624) (134,405) 折舊 (25,123) (30,615) 利息費用 (89,629) ...

Economic Performance - In 2022, the company's actual GDP growth in mainland China fell to 3.0%, with a CPI increase of 2.0%[6] - For 2023, the company expects actual GDP growth in mainland China to rebound to around 5.2%-5.3%[11] - The Hong Kong stock market saw a decline, with the Hang Seng Index dropping by 15.5% in 2022, while southbound capital inflow was HKD 336.4 billion, slightly down from 2021[7] - The total amount raised in the Hong Kong stock market in 2022 was HKD 251.9 billion, a 67% decrease from HKD 773.3 billion in 2021, reflecting a significant slowdown in IPO trends[19] Financial Performance - In 2022, the company's revenue decreased by 42% year-on-year to HKD 426.34 million, down from HKD 730.29 million in 2021, primarily due to a weak offshore Chinese dollar bond market and significant fluctuations in the securities market[15] - The company recorded a pre-tax loss of HKD 871 million in 2022, compared to a pre-tax loss of HKD 118 million in 2021, with a shareholder loss of HKD 880 million versus HKD 96 million in the previous year[15] - Commission and fee income fell by 42% year-on-year to HKD 235.51 million, while interest income decreased by 4% to HKD 197.05 million[16] - Wealth management business revenue decreased by 26% to HKD 273.14 million, with commission and fee income down 44% to HKD 101.43 million and interest income from customer loans down 40% to HKD 105.53 million[19] - The company's investment business revenue decreased by 95% year-on-year to HKD 0.05 billion, primarily due to poor trading portfolio performance[34] Business Strategy and Development - The company plans to accelerate business expansion and enhance its cross-border business capabilities in the Guangdong-Hong Kong-Macao Greater Bay Area[12] - The company aims to deepen its business transformation, focusing on light capital operations and building a comprehensive financial service platform[12] - The company intends to optimize its talent structure and enhance human resource management to improve professional capabilities[12] - The company plans to enhance its wealth management services by expanding its product platform and improving its financial technology capabilities[22] - The company aims to continue expanding its private equity business and enhance its product matrix to meet diverse market client needs[40] Risk Management - The company will implement risk-adjusted return assessments and improve its risk control system to enhance overall asset allocation risk management[12] - The company will continue to focus on risk management while pursuing growth opportunities in margin financing and other interest income businesses[22] - The company has implemented a "three lines of defense" model for effective risk management and internal control systems[198] - The risk management department operates independently from business units, ensuring objective oversight of risk management practices[200] Human Resources and Employee Management - The total number of full-time employees increased to 315 in 2022 from 303 in 2021, with total employee costs amounting to approximately HKD 298 million, up from HKD 266 million in 2021[56] - The employee turnover rate increased to 36% in 2022, up from 28% in 2021[88] - The total number of employees receiving training was 294 in 2022, a slight decrease from 303 in 2021[95] - The average training hours per employee in 2022 was 28.5 hours, compared to 25 hours in 2021[95] - The percentage of employees receiving training was 10.5% in 2022, down from 12.0% in 2021[95] Environmental Impact - In 2022, the direct greenhouse gas emissions from company vehicles were 5.72 tons of CO2, a reduction of approximately 4.7% compared to the previous year[70] - The total greenhouse gas emissions (Scope 1 and 2) for 2022 were 555.97 tons, down from 609.20 tons in 2021, representing a decrease of about 8.8%[73] - The company aims to reduce direct greenhouse gas emissions from company vehicles by 15% by the end of 2025, targeting a total of 12.48 tons[71] - Total energy consumption decreased to 797.08 MWh in 2022 from 890.15 MWh in 2021, a reduction of approximately 10.4%[76] - The company has set a mid-term energy reduction target for 2022-2025, focusing on resource efficiency and waste management[70] Corporate Governance - The company adheres to high standards of corporate governance, complying with the relevant codes and regulations as mentioned in section 139[140] - The board of directors is responsible for corporate governance duties and may delegate responsibilities to committees as necessary[141] - The company has established a code of conduct and compliance manual for employees and directors[143] - The board has mechanisms in place to obtain independent views and opinions, including annual meetings with independent non-executive directors[150] - The company has adopted a board diversity policy, considering factors such as skills, knowledge, professional experience, gender, age, and cultural background in board composition[157] Community Engagement and Social Responsibility - The company sponsored and donated a total of HKD 18,800 in 2022, slightly down from HKD 18,900 in 2021 and up from HKD 16,000 in 2020[117] - The company continues to engage in charitable activities to support those in need and achieve environmental goals[116] - The company has prioritized sustainable and efficient products in its supply chain management, focusing on suppliers with environmental certifications[99] - The company has established policies to prevent child labor and forced labor, ensuring compliance with relevant laws and regulations as described in section 4.5[129] Compliance and Legal Matters - The company has not identified any significant violations of applicable laws and regulations affecting its operations in 2022[110] - The company maintained zero corruption litigation cases in 2022, 2021, and 2020[114] - The company reported no significant violations of relevant laws and regulations regarding emissions and waste management during the reporting period[119] - The company has implemented strict internal policies to prevent fraud and corruption, with no major risks identified in the current year[111]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 截至二零二二年十二月三十一日止年度之全年業績 業績 申萬宏源（香港）有限公司（「本公司」）之董事局（「董事局」）欣然公告，本公司及其附屬公司 （「本集團」）截至二零二二年十二月三十一日止年度綜合業績連同上個財政年度之比較數字如下: 綜合損益表 截至十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收入 4 426,340 730,287 — 使用實際利率法計算之利息收入 97,141 170,061 — 於香港財務報告準則第 15號範圍內之客戶合約收入 235,506 409,191 — 源自其他來源收入 93,693 151,035 其他(虧損)/收益，淨額 4 (119,535) 12,092 佣金費用 (56,006) (150,541) 僱員薪酬和福利費用 (297,992) (265,890) 折舊 (66,197) (53,110) 利息費用 (108,118) (94,7 ...

Financial Performance - The company reported a revenue of HKD 281,338,000 for the six months ended June 30, 2022, a decrease of 37.5% compared to HKD 450,052,000 in the same period last year[7]. - The net loss for the period was HKD 123,430,000, compared to a profit of HKD 53,666,000 in the previous year, indicating a significant decline in performance[11]. - Total comprehensive loss for the period amounted to HKD 157,036,000, compared to a total comprehensive income of HKD 46,751,000 in the previous year[11]. - The company reported a basic and diluted loss per share of HKD 7.91, compared to earnings per share of HKD 3.44 in the previous year[7]. - The company reported a loss before tax of HKD (127,526) thousand for the six months ended June 30, 2022, compared to a profit of HKD 60,437 thousand in the same period last year[19]. - For the six months ended June 30, 2022, the total revenue from external customers was HKD 246,172,000, a decrease from HKD 455,829,000 for the same period in 2021, representing a decline of approximately 46%[28]. - The company reported a significant decrease in investment income, with total investment business income dropping to HKD 281,338,000 in 2022 from HKD 450,052,000 in 2021, a decline of approximately 37%[36]. - The company recorded a pre-tax loss of HKD 128 million in the first half of 2022, compared to a pre-tax profit of HKD 60.44 million in the first half of 2021[87]. - Shareholders' loss for the first half of 2022 was HKD 123 million, while in the same period of 2021, shareholders' profit was HKD 53.67 million[87]. Asset and Liability Management - The company’s non-current assets decreased to HKD 724,747,000 as of June 30, 2022, from HKD 1,095,833,000 at the end of the previous year[13]. - Current assets increased slightly to HKD 21,981,269,000 from HKD 21,811,450,000, indicating stable liquidity[13]. - The company’s total liabilities remained relatively stable, with current liabilities totaling HKD 18,924,682,000 as of June 30, 2022[13]. - The company’s cash and bank balances were HKD 571,227,000, showing a slight decrease from HKD 576,706,000 at the end of the previous year[13]. - The company’s total financial assets amounted to HKD 1,015,622,000 as of June 30, 2022, down from HKD 1,782,711,000 at the end of 2021[44]. - The total amount of accounts payable as of June 30, 2022, included HKD 9,330,335 as of June 30, 2022, from HKD 8,333,954 as of December 31, 2021, representing a growth of approximately 12%[56]. - The company reported overdue receivables from cash clients of HKD 48 million as of June 30, 2022 (December 31, 2021: HKD 27 million) and margin loans of HKD 1.789 billion (December 31, 2021: HKD 2.556 billion)[130]. Credit and Risk Management - The company’s expected credit loss expense increased to HKD 70,775,000, up from HKD 19,650,000 in the prior year, reflecting a deterioration in asset quality[7]. - The expected credit loss for financial assets measured at amortized cost was HKD 46,890,000 as of June 30, 2022, compared to HKD 19,206,000 at the beginning of the year[46]. - The company has no significant credit risk concentration due to a diverse customer base, with no collateral held for cash client receivables[53]. - The company believes that no impairment provision is necessary for overdue but not impaired accounts receivable, as they are backed by securities that can offset debts[53]. Operational Highlights - The company plans to focus on improving asset quality and exploring new market opportunities to enhance future performance[6]. - The company is actively promoting light capital business and implementing a "investment + investment banking" development strategy to create new growth points[86]. - The company aims to enhance its wealth management brand "Wynner" and improve its service offerings through financial technology[96]. - The company aims to expand its underwriting project reserves and actively participate in merger and acquisition advisory projects[100]. Corporate Governance - The company has complied with all applicable code provisions in the Corporate Governance Code as of June 30, 2022[144]. - The Audit Committee, consisting of three independent non-executive directors, reviewed the interim results announcement and report for the six months ended June 30, 2022[146]. - The company aims to maintain high levels of corporate governance to enhance transparency and accountability to shareholders[144].

Financial Performance - The company's revenue for the year ended December 31, 2021, was HKD 730 million, a decrease of 13% compared to HKD 835 million in 2020[6] - The company recorded a pre-tax loss of HKD 118 million in 2021, compared to a pre-tax profit of HKD 209 million in 2020, primarily due to increased expected credit loss provisions for bond products[6] - The loss attributable to shareholders was HKD 95.75 million in 2021, compared to a profit of HKD 176 million in 2020, with a loss per share of HKD 0.0613[6] - The company’s board has proposed not to declare a final dividend for the year ended December 31, 2021, compared to a dividend of HKD 0.04 per share in 2020[7] - In 2021, the company's revenue decreased by 13% year-on-year to HKD 730 million, down from HKD 835 million in 2020, primarily due to weak performance in the offshore Chinese dollar bond market[21] - The company recorded a pre-tax loss of HKD 118 million in 2021, compared to a pre-tax profit of HKD 209 million in 2020, largely due to increased expected credit loss provisions in institutional services and trading business[21] Market Overview - The A-share IPO market was active in 2021, with 493 new listings raising RMB 547.8 billion, marking a year-on-year increase of 25% and 17% respectively[11] - The Hang Seng Index fell by 14.1% in 2021, while southbound capital inflows totaled HKD 454.4 billion, a slight decrease from 2020[11] - The company anticipates that the global monetary environment will accelerate tightening in 2022, influenced by high inflation and geopolitical risks from the Russia-Ukraine conflict[13] Revenue Sources - Commission and fee income increased by 34% year-on-year to HKD 409 million, driven by improved quality and volume in bond and equity underwriting projects[22] - Interest income rose by 9% year-on-year to HKD 206 million, benefiting from timely business strategies[22] - Investment business income decreased by 66% year-on-year to HKD 115 million, significantly impacted by volatility in the Chinese dollar bond market[22] - Wealth management business commission and fee income was HKD 181 million, slightly down from HKD 201 million in 2020, affected by a sluggish IPO market and reduced trading volume[25] - Interest income from customer loans increased by 18% year-on-year to HKD 175 million, while other interest income fell to HKD 10.78 million, a decrease of 67%[25] Business Strategy - The company plans to enhance risk management and optimize its asset-liability structure to improve operational coordination and strengthen its wealth management platform[16] - The outlook for the A-share market is expected to be upward with value stocks like financials and real estate likely to perform well in 2022[15] - The company aims to expand its cross-border business and enhance its market influence by leveraging overseas resources and competitive advantages[16] - The company plans to continue expanding its underwriting project reserves and participate in more financial advisory projects related to mergers and acquisitions[32] Operational Highlights - The company completed 64 bond projects in 2021, assisting clients in raising a total of USD 94.37 billion from state-owned and municipal investment platform projects[34] - The stock capital market team completed 9 IPO underwriting projects in 2021, including 1 exclusive sponsorship project[33] - The company launched a new generation online trading platform, enhancing trading functions and reducing cross-border transaction delays[28] - The financial innovation team has accelerated business development, with leveraged note financing growing nearly 100% year-on-year, contributing to diversified revenue sources[40] - Institutional services and trading business recorded investment income of HKD 114 million, a decrease of 65% year-on-year, primarily due to poor trading portfolio performance[40] Employee and Workforce - Total full-time employees increased to 303 in 2021 from 269 in 2020, with employee costs amounting to approximately HKD 266 million, down from HKD 280 million in 2020[62] - The employee turnover rate decreased from 32% in 2020 to 28% in 2021, indicating improved employee retention[100] - The average training hours per employee increased from 9.6 hours in 2020 to 12.0 hours in 2021, reflecting a focus on employee development[107] - The company maintained a zero fatality rate due to work-related incidents for three consecutive years[103] - The gender distribution of employees in 2021 was 147 females and 156 males, maintaining a balanced workforce[100] Environmental Impact - In 2021, the total greenhouse gas emissions amounted to 640.50 tons, a decrease of approximately 3.85% from 666.05 tons in 2020[87] - Direct greenhouse gas emissions from company vehicles were 6.00 tons, an increase of about 21% compared to 4.94 tons in 2020[82] - Indirect greenhouse gas emissions from electricity consumption were 603.20 tons, a reduction of approximately 3.34% from 624.00 tons in 2020[86] - The total amount of recycled paper increased to 2.43 tons, a rise of approximately 23% from 1.97 tons in 2020[93] - The company achieved a 99% usage rate of FSC-certified paper in 2021, maintaining the same level as in 2020[94] Governance and Compliance - The company held six board meetings and one annual general meeting during the fiscal year ending December 31, 2021[154] - The chairman, Fang Qingli, attended 5 out of 5 board meetings before resigning on October 26, 2021[154] - The new CEO, Liang Jun, was appointed on June 12, 2021, and attended 2 out of 2 board meetings since his appointment[160] - The company has established a policy for directors to seek independent professional advice at the company's expense when necessary[156] - The board of directors has ensured effective communication with shareholders, maintaining a shareholder communication policy available on the company's website[163]

Financial Performance - The company reported a total revenue of HKD 528,821,000 for the six months ended June 30, 2021, representing a 28.7% increase from HKD 410,755,000 in the same period of 2020[7]. - Net profit for the period was HKD 53,666,000, down 33.5% from HKD 80,697,000 in the previous year[7]. - Earnings per share (basic and diluted) decreased to HKD 3.44 from HKD 5.17, reflecting a decline of 33.5%[7]. - Total comprehensive income for the six months ended June 30, 2021, was HKD 46,751,000, down from HKD 60,395,000 in the same period of 2020, reflecting a decline of approximately 22.5%[15]. - The company reported a significant increase in interest expenses, totaling HKD 133,756,000 for the first half of 2021, compared to HKD 59,001,000 in the same period of 2020, representing an increase of approximately 126%[17]. - Pre-tax profit decreased by 35% year-on-year to HKD 60.44 million, down from HKD 92.83 million, primarily due to increased commission expenses and interest costs related to structured notes[81]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to HKD 26,478,329,000, an increase from HKD 15,353,324,000 at the end of 2020[11]. - The company's total liabilities increased to HKD 23,276,028,000 from HKD 12,236,255,000, indicating a significant rise in financial obligations[11]. - The net asset value was reported at HKD 4,022,971,000, slightly down from HKD 4,038,666,000 at the end of 2020[12]. - The total expected credit loss for financial assets as of June 30, 2021, was HKD 44,722,000, up from HKD 17,491,000 as of June 30, 2020[43]. - The total accounts payable as of June 30, 2021, was HKD 9,462,734, resulting in a net amount of HKD 9,237,834 after offsetting[70]. Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2021, showed a net outflow of HKD 4,084,369,000, compared to a net outflow of HKD 3,532,869,000 in the same period of 2020, indicating a worsening cash flow situation[17]. - The net cash inflow from financing activities for the six months ended June 30, 2021, was HKD 4,189,792,000, compared to HKD 3,486,044,000 in the same period of 2020, indicating an increase of approximately 20.1%[20]. - The company held cash and bank deposits of HKD 5.21 billion as of June 30, 2021, an increase from HKD 4.15 billion as of December 31, 2020[111]. - The liquidity ratio was 114% as of June 30, 2021, down from 125% as of December 31, 2020, while the capital debt ratio increased to 216% from 106%[111]. Revenue Sources - The company generated commission income from securities trading of HKD 93,314,000 for Hong Kong stocks, an increase from HKD 75,957,000 in the previous year, reflecting a growth of approximately 23.0%[30]. - Commission and fee income rose by 46% year-on-year to HKD 214.33 million, driven by the growth in wealth management and institutional services[83]. - Interest income increased by 30% year-on-year to HKD 139.15 million, compared to HKD 110.94 million in the previous year[86]. - Investment income net amount reached HKD 175.35 million, a 33% increase from HKD 152.72 million in the same period last year[86]. Receivables and Credit Management - The company experienced a significant increase in receivables, with accounts receivable rising by HKD 3,853,518,000 in the first half of 2021, compared to HKD 574,775,000 in the same period of 2020[17]. - Accounts receivable from cash clients rose to HKD 3,026,219,000 as of June 30, 2021, compared to HKD 1,382,825,000 as of December 31, 2020, indicating a significant growth of 118.8%[45]. - The aging analysis of accounts receivable showed that receivables over three months increased to HKD 12,668,000 as of June 30, 2021, from HKD 6,190,000 as of December 31, 2020[47]. - The overdue receivables from cash clients amounted to HKD 3.09 billion as of June 30, 2021, compared to HKD 0.28 billion as of December 31, 2020[116]. Dividends and Shareholder Information - The company declared and paid dividends of HKD 62,446,000 for the year-end 2020, an increase from HKD 46,834,000 for the year-end 2019, representing a growth of approximately 33.4%[20]. - The board of directors resolved not to declare an interim dividend for the six months ended June 30, 2021[126]. - As of June 30, 2021, Shenwan Hongyuan Holdings (B.V.I.) holds 402,502,312 shares, representing 25.78% of the company's issued shares[129]. - Shenwan Hongyuan Securities Co., Ltd. and Shenwan Hongyuan Group Co., Ltd. collectively hold 1,170,808,569 shares, accounting for 75.00% of the company's issued shares[131]. Management and Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the interim report for the six months ended June 30, 2021[136]. - There was a change in the CEO position on June 12, 2021, with Mr. Liang Jun appointed as the new CEO, receiving a monthly salary of HKD 240,000[137]. - The board of directors consists of nine members, including five executive directors and three independent non-executive directors[138].