Financial Performance - For the six months ended June 30, 2024, the Group recorded an unaudited profit attributable to shareholders of HK$33.29 million, a decrease of 71.2% compared to the same period in 2023[10]. - The decrease in profit was primarily due to a reduction in the share of results from Xiamen International Bank Co., Ltd. and a one-off exchange loss of approximately HK$21.93 million from the reduction of paid-in capital of Sanming Sanyuan District Minxin Micro Credit Company Limited[10]. - Basic earnings per share for the period was 5.57 HK cents[10]. - The Group's financial services business reported an unaudited profit after tax of HK$73.18 million in the first half of 2024, a decrease of 46.9% from HK$137.69 million in the same period of 2023[17]. - Profit for the period significantly decreased to HK$33,292,000, down 71.2% from HK$115,522,000 in 2023[42]. - Basic and diluted earnings per share fell to HK$5.57, a decrease of 71.2% compared to HK$19.34 in the prior year[41]. - Total revenues for the six months ended June 30, 2024, were HK$103,301,000, a decline of 5.5% compared to HK$109,717,000 in 2023[41]. - Operating loss increased to HK$13,851,000 from HK$9,392,000 in the previous year, reflecting a deterioration in operational performance[41]. Economic Environment - The global economy showed signs of gradual recovery despite challenges from geopolitical uncertainties and high inflation rates[9]. - The Group's performance was impacted by a high interest rate environment and conservative corporate activity, leading to a prudent approach in business operations[10]. - The Group remains optimistic about future prospects due to proactive and prudent business development and diversification strategies[9]. Asset Management - The Group's total assets remained at HK$9.18 billion as of June 30, 2024, unchanged from the end of 2023[12]. - The total assets of the banking business accounted for 69.1% of the Group's total assets as of June 30, 2024[12]. - The Group's net asset value per share was HK$13.45 as of June 30, 2024, with approximately 79% derived from the investment in XIB[12]. - Total bank balances increased to HK$1,300.04 million as of June 30, 2024, from HK$1,061.83 million at the end of 2023[24]. Investment and Shareholding - XIB was ranked 156th in total assets and 168th in Tier-one Capital in the 2024 Top 1000 World Banks, maintaining its position among the top 200 banks globally for consecutive years[13]. - As of June 30, 2024, Samba Limited holds 144,885,000 shares, representing approximately 24.26% of the issued share capital of the Company[35]. - Vigour Fine Company Limited directly holds 355,552,883 shares, accounting for approximately 59.53% of the issued share capital of the Company[35]. - The total number of shares held by substantial shareholders indicates a concentrated ownership structure, with the top three shareholders holding over 98% of the issued share capital[35][36]. Risk Management - The management is focused on minimizing operational risks while seizing new opportunities for business diversification[10]. - The Group's strategy includes adapting to uncertainties in the external environment[10]. - The Chairman's statement highlighted a commitment to maintaining a cautious business approach in response to external challenges[7]. - The Group periodically reviews and monitors its foreign currency exposure due to exchange rate fluctuations between Hong Kong dollars and Renminbi[25]. Insurance Sector - The insurance service recorded a surplus of HK$5.21 million for the six months ended June 30, 2024, an increase of 27.7% from HK$4.08 million in the same period of 2023[13]. - The profit after tax for Min Xin Insurance increased by 97% to HK$3.98 million in the first half of 2024, up from HK$2.02 million in the same period of 2023, mainly due to increased insurance service results and investment income[19]. - Min Xin Insurance recorded insurance revenue of HK$91.91 million in the first half of 2024, a decrease of 7.9% compared to HK$99.79 million in the same period of 2023[19]. Corporate Governance - The Company has complied with all applicable code provisions set out in the Corporate Governance Code throughout the six months ended June 30, 2024[30]. - The Audit Committee reviewed the accounting principles and practices adopted by the Group and discussed risk management and financial reporting matters for the six months ended June 30, 2024[31]. - The Company has adopted a code of conduct for directors' securities transactions that meets or exceeds the standards set out in the Model Code[31]. Employee and Management Changes - The Group employed 69 employees as of June 30, 2024, with remuneration based on individual performance and experience[26]. - Mr. HUANG Wensheng has been appointed as General Manager and a member of the Remuneration Committee effective from March 29, 2024[38]. - Mr. CHEN Yu has resigned as General Manager and a member of the Remuneration Committee effective from March 29, 2024[39]. Debt and Financing - Total borrowings amounted to HK$820.25 million, down 4.1% from HK$855.59 million at the end of 2023[22]. - The effective interest rate for borrowings ranged from 2.7% to 6.4% as of June 30, 2024, compared to 2.7% to 7.6% on December 31, 2023[22]. - The total liabilities of the Group were HK$1,149.13 million, with a total liabilities to equity ratio of 14.3% as of June 30, 2024, up from 13.8% at the end of 2023[24]. Cash Flow and Liquidity - The net cash outflow from operating activities was HK$10,174,000, compared to an inflow of HK$22,587,000 in the same period of 2023[46]. - The company reported a net cash inflow from investing activities of HK$290,102,000 for the six months ended June 30, 2024, compared to HK$147,709,000 in the prior year[47]. - Cash and cash equivalents increased to HK$640,014,000 from HK$415,415,000, indicating improved liquidity[43]. Future Outlook - The Group aims to enhance sustainable business development and achieve better financial performance through innovative technology and strategic transformation in the insurance sector[15]. - The Group plans to continue expanding its insurance business while improving the quality and profitability of its services[13]. - The management is working with relevant parties to identify feasible measures to restore the public float[40].

Financial Performance - Shareholders' profit attributable decreased by 71.2% to HKD 33.29 million[1] - Basic earnings per share dropped to HKD 0.0557 from HKD 0.1934, a decline of 71.2%[2] - Total income for the period was HKD 103.30 million, a decline of 5.5% from HKD 109.72 million[2] - Operating loss for the period was HKD 13.85 million, compared to a loss of HKD 9.39 million in the previous year[2] - The company reported external customer revenue of HKD 103,301 thousand for the first half of 2024, a decrease of 5.8% compared to HKD 109,717 thousand in the same period of 2023[12] - The operating income for the first half of 2024 was HKD 121,948 thousand, down from HKD 126,170 thousand in 2023, representing a decrease of 3.5%[12] - The net profit for the first half of 2024 was HKD 73,178 thousand, compared to HKD 137,690 thousand in the same period of 2023, indicating a significant decline of 46.9%[12] - The company recorded an unaudited profit attributable to shareholders of HKD 33.29 million for the six months ended June 30, 2024, a decrease of 71.2% compared to HKD 115.52 million in the same period of 2023[31] Revenue and Income - Insurance revenue for the six months ended June 30, 2024, was HKD 91.91 million, down from HKD 99.79 million, a decrease of 7.4%[2] - Insurance revenue decreased to HKD 91,909 thousand in 2024 from HKD 99,793 thousand in 2023, reflecting a decline of 7.5%[12] - The insurance services segment recorded a profit of HKD 5.21 million for the six months ended June 30, 2024, an increase of 27.7% from HKD 4.08 million in the same period of 2023[28] - The company reported a significant increase in other income, which rose to HKD 18,647 thousand in 2024 from HKD 16,453 thousand in 2023, an increase of 13.3%[12] Assets and Liabilities - Total assets remained stable at HKD 91.8 billion compared to the end of 2023[4] - Total equity attributable to shareholders decreased by 0.5% to HKD 80.32 billion[5] - Total liabilities increased to HKD 1.15 billion from HKD 1.11 billion, reflecting a rise of 3.0%[5] - Total assets as of June 30, 2024, were HKD 9,181,749 thousand, slightly down from HKD 9,184,725 thousand in 2023[12] - The company’s total liabilities decreased to HKD 1,149,133 thousand in 2024 from HKD 1,115,275 thousand in 2023, showing an increase of 3.0%[12] - Total impaired customer loans amounted to HKD 156,932,000 as of June 30, 2024, down from HKD 161,118,000 at the end of 2023, a decrease of 2.2%[24] Segment Information - The group operates in four segments: Financial Services, Insurance, Property Investment, and Strategic Investments[9] - Financial Services segment includes operations through Xiamen International Bank and its subsidiaries, providing banking services in mainland China, Hong Kong, and Macau[9] - The group’s insurance segment operates general insurance businesses in Hong Kong and Macau[10] - Property Investment segment focuses on leasing high-quality office buildings in mainland China[10] - Strategic Investments include investments in Huaneng International Power Co., A-share investments, high-tech projects, and subordinated capital instruments and bonds[10] Cash and Investments - Cash and cash equivalents increased to HKD 640.01 million from HKD 415.42 million, an increase of 54.0%[4] - The company’s investment in joint ventures was HKD 73,041 thousand for the first half of 2024, compared to HKD 145,469 thousand in 2023, reflecting a decrease of 49.8%[12] - The company’s interest income for the first half of 2024 was HKD 2,114 thousand, down from HKD 4,559 thousand in 2023, a decline of 53.7%[12] - Total interest income from bank deposits increased to HKD 18,509,000 for the six months ended June 30, 2024, compared to HKD 16,027,000 for the same period in 2023, representing a growth of 15.5%[16] Corporate Governance and Compliance - The board will continue to monitor and review corporate governance practices to ensure compliance with the Corporate Governance Code[50] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and methods adopted by the group[55] - The interim results announcement for the six months ended June 30, 2024, was published on the Hong Kong Stock Exchange website and the company's website[56] Future Outlook - The company remains optimistic about future growth despite geopolitical instability and high interest and inflation rates, citing a gradual recovery in the global economy[26] - The company plans to continue focusing on prudent risk management and business diversification to pursue long-term growth opportunities in the Greater China region[29]

Corporate Governance - The company has appointed Mr. Wang Fei as the Chairman of the Board and Executive Director since February 2023, bringing extensive experience in corporate development and financial management [14]. - The company has a formal procedure for the appointment of new directors, ensuring a balance of skills, knowledge, and experience on the Board [3]. - All directors are subject to retirement by rotation at least once every three years, with eligibility for re-election at the annual general meeting [3]. - The company has disclosed the latest list of directors and their roles, including the identification of Independent Non-executive Directors in corporate communications [3]. - The company emphasizes the importance of independent directors in contributing positively to corporate goals and strategies [5]. - The company has established a Nomination Committee to review and recommend director appointments based on the Board's skill balance [3]. - The company has disclosed that there are no significant financial, business, family, or other relevant relationships between Board members [3]. - The company is committed to monitoring the training and continuous professional development of directors and senior management [7]. - The company has a comprehensive corporate governance framework in place, ensuring compliance with the CG Code and disclosure requirements [8]. - The Group's independent non-executive directors bring over 40 years of extensive experience in banking and finance, enhancing corporate governance [44]. Financial Performance - The Group reported a profit attributable to shareholders of HK$ 571,486 thousand for 2023, an increase from HK$ 456,969 thousand in 2022, representing a growth of approximately 25% [66]. - Total equity attributable to shareholders of the Company reached HK$ 8,261,389 thousand in 2023, compared to HK$ 7,598,091 thousand in 2022, reflecting an increase of about 8.7% [70]. - The Group recorded a profit attributable to shareholders of HK$39.41 million in 2023, a decrease of 91.4% compared to HK$456.97 million in 2022 [139]. - The company reported a profit before taxation of HK$29.761 million for 2023, compared to HK$472.459 million in 2022 [92]. - The financial services business reported a profit after tax of HK$55.63 million in 2023, down 88.4% from HK$481.57 million in 2022 [139]. - The insurance service recorded a surplus of HK$11.52 million for the year ended December 31, 2023, a decrease of 39.9% from HK$19.15 million in 2022 [109]. - The Group's share of profit after tax from Xiamen International Bank Group was HK$65.95 million in 2023, a decrease of 86.2% from HK$477.66 million in 2022 [104]. - The Group recorded a loss of HK$11.01 million in 2023 from the net movement in fair value change in other comprehensive income [154]. Market and Economic Conditions - The Group's growth is influenced by macroeconomic factors affecting Mainland China, Hong Kong, and Macau, including GDP growth and inflation levels [33]. - The global economic environment in 2023 was affected by geopolitical tensions and high interest rates, leading to weakened growth momentum and a challenging business environment [75]. - The Group's financial condition and operational results may be adversely affected by changes in credit policies and loan demand [33]. - New or revised laws and regulations may be introduced that could negatively impact the Group's insurance business in Hong Kong and Macau [34]. - The insurance business in Hong Kong and Macau is highly regulated, requiring compliance with various laws and regulations, which may restrict operations and require significant resources [34]. Investment and Asset Management - The company is classified as a long-term financial asset of the Group, with dividend income affected by various external factors [15]. - The Group must revalue its investment properties at each reporting period, with changes in fair value recognized in the consolidated income statement [38]. - The Group's investment properties may experience further declines in fair value due to changing market conditions [40]. - The fair value of Huaneng A-Shares is subject to volatility, influenced by factors beyond the Group's control, such as Huaneng's operational results and market conditions [36]. - The Group's investment in Huaneng A-Shares had a fair value of HK$574.28 million as of December 31, 2023 [154]. - The Group's impaired loan balance at the end of 2023 was RMB146.6 million, down from RMB157.24 million at the end of 2022, mainly due to write-offs and recoveries [175]. Management and Strategy - The management team has a diverse background in banking, finance, and technology, enhancing the company's strategic capabilities [20][24]. - The company aims to leverage its management's expertise to drive growth and innovation in financial services [24]. - The leadership team is committed to maintaining high standards of governance and operational efficiency [20]. - The management highlighted the importance of adapting to changes in credit policies and loan demand as part of their growth strategy [46]. - The management team of the insurance business will focus on digital transformation and improving service quality to enhance sustainable business development [136]. - The management team of Min Xin Insurance aims to broaden distribution channels and identify new business opportunities to improve financial performance in a competitive market [153]. Shareholder and Capital Structure - The company completed the issuance of 263 million new shares in March 2023, diluting its ownership from approximately 8.8543% to about 8.689% [120]. - The dilution loss from the Company's shareholding in Xiamen International Bank was approximately HK$15.72 million due to the issuance of 263 million new shares in March 2023 [107]. - The total equity attributable to shareholders of the company was HK$8,069.450 million in 2023, down from HK$8,261.389 million in 2022 [95]. - The net asset value per share of the Company was HK$13.51 at December 31, 2023, with approximately 79.5% derived from the investment in Xiamen International Bank [104]. Risk Management - The Group's business activities are exposed to various financial risks, including market risk, credit risk, and liquidity risk, which are detailed in the financial statements [45]. - The group faces various insurance and financial risks, including market risk, credit risk, and liquidity risk [195]. - The Group did not enter into any derivative contracts to hedge against exchange rate risks during the year [187]. - The group has not entered into any derivative contracts to mitigate foreign exchange risks during the year [190]. Environmental and Social Responsibility - The group continues to support environmental protection measures and encourages energy-saving practices among employees [193].

Financial Performance - The group's total revenue for the year ended December 31, 2023, was HKD 214,649,000, compared to HKD 208,171,000 in 2022, representing a growth of approximately 3.5%[6] - Interest income increased to HKD 10,847,000 in 2023 from HKD 3,822,000 in 2022, marking a significant rise of 184%[5] - The group reported a net profit of HKD 39,409,000 for the year, compared to HKD 4.2 million in the previous year, indicating a substantial increase[5] - The group’s operating profit for the year was HKD 17,746,000, reflecting a recovery from previous losses[5] - The company’s profit for the year ended December 31, 2023, was HKD 39,409,000, a significant decrease of 91.4% compared to HKD 456,969,000 in 2022[84] - Basic and diluted earnings per share for 2023 were HKD 6.60, down from HKD 76.51 in 2022, indicating a decline of 91.4%[90] - The total comprehensive income for the year was a loss of HKD 120,268,000, compared to a loss of HKD 380,380,000 in 2022[84] - Shareholders' profit attributable to the company decreased by 91.4% to HKD 39.41 million[100] - The company's profit attributable to shareholders for 2023 was HKD 39.41 million, a decrease of HKD 41.76 million or 91.4% compared to HKD 456.97 million in 2022[175] Assets and Liabilities - The total assets of the company and its subsidiaries amounted to HKD 9,184,725,000 as of December 31, 2023, compared to HKD 9,168,857,000 in 2022, showing a slight increase[6] - The total liabilities of the group were HKD 6,442,096,000 as of December 31, 2023, down from HKD 6,550,270,000 in 2022, indicating a reduction in debt[6] - The total equity attributable to shareholders decreased to HKD 8,069,450,000 from HKD 8,261,389,000 in 2022, a decline of 2.3%[94] - The impairment provision for credit losses as of December 31, 2023, was HKD 153.24 million, compared to HKD 170.06 million in 2022[193] Dividends - The company proposed a final dividend of HKD 0.09 per share for the year ending December 31, 2023, totaling approximately HKD 53.75 million, a decrease from HKD 0.12 per share in 2022, which amounted to HKD 71.67 million[20] - The company declared a final dividend of HKD 0.09 per share, down from HKD 0.12 per share in the previous year[90] Insurance Operations - The insurance customer expenses were recorded at HKD (163,007,000) in 2023, compared to HKD (160,450,000) in 2022, indicating an increase in costs[5] - The insurance revenue for the year was HKD 191,128,000, compared to HKD 194,998,000 in 2022, reflecting a decrease of 2.0%[90] - Minxin Insurance reported a post-tax profit of HKD 4.87 million in 2023, a decrease of 74.7% compared to HKD 19.25 million in 2022, primarily due to a decline in insurance service performance[60] - The insurance services segment recorded a profit of HKD 11.52 million, a decline of 39.9% from HKD 19.15 million in 2022 due to decreased insurance revenue and increased claims costs[173] Investments and Strategic Plans - The group plans to continue expanding its strategic investments, including in high-tech projects and bonds, to enhance overall performance[3] - The company plans to continue expanding distribution channels and identifying new business opportunities in the competitive insurance market[179] Accounting and Compliance - The initial application of the revised accounting standards is not expected to have a significant impact on the group's financial position or performance[2] - The company adopted HKFRS 17 on January 1, 2023, which established principles for the recognition, measurement, presentation, and disclosure of insurance contracts[137] - The company’s financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and comply with the applicable disclosure requirements of the Listing Rules[130] Foreign Exchange and Other Financial Matters - The company incurred a net foreign exchange loss of HKD 6.28 million in 2023, a decrease from HKD 27.69 million in 2022[188] - The net foreign exchange loss for 2023 was HKD 6,276,000, significantly improved from HKD 27,689,000 in 2022[128] Employee and Operational Metrics - The company’s total number of employees as of December 31, 2023, was 69, with compensation based on individual performance and qualifications[42] - The company’s indirect expenses related to strategic decisions and central operations are classified under "Corporate Activities" and not allocated to reportable segments[125]

2023 Interim Report 中期報告 信 創未來 閩 聚金融 Website 網址 www.minxin.com.hk Email 電郵 mxhl.enquiry@minxin.com.hk 17th Floor, Fairmont House 8 Cotton Tree Drive Central, Hong Kong 香港中環紅棉路8號東昌大廈17樓 Tel 電話 (852) 2521 5671 Fax 傳真 (852) 2530 5488 目錄 CONTENTS | | | Pages | | --- | --- | --- | | 公司資料 | Corporate Information | 2 | | 主席報告書 | Chairman's Statement | 4 | | 管理層討論及分析 | Management Discussion and Analysis | 8 | | 企業管治及其他資料 | Corporate Governance and Other Information | 18 | | 簡明綜合損益表 | Condensed Consolidated Income S ...

9 股息 | --- | --- | --- | |----------------------|----------------------|---------------------| | | 2023 年 6 月 30 日 | 2022 年 12 月 31 日 | | | 港幣千元 | 港幣千元 | | 小額貸款業務 | | | | 擔保貸款 | 87,819 | 93,977 | | 抵押貸款 | 63,858 | 68,825 | | 質押及擔保貸款 | 10,378 | 10,866 | | 抵押、質押及擔保貸款 | 4,108 | 4,301 | | 已信貸減值的客戶貸款 | 166,163 | 177,969 | | 已信貸減值的應收利息 | 7,356 | 8,008 | | | 173,519 | 185,977 | | 減值準備 | (158,490) | (170,056) | | | 15,029 | 15,921 | – 15 – 2023年上半年，國際地緣政治局勢不穩及衝突持續、美國緊縮貨幣政策、主要央 行多次加息行動、以及通脹壓力，令經濟活動持續受壓，營商環境充滿挑戰。 面對宏 ...

Financial Assets and Investments - Financial assets at fair value through other comprehensive income increased from HK$805,914,000 in 2021 to HK$606,943,000 in 2022, a decrease of 24.7%[3] - Financial assets at fair value through profit or loss remained stable at HK$742,080,000 in 2022 compared to HK$742,997,000 in 2021[3] - Financial assets at amortised cost increased from HK$966,034,000 in 2021 to HK$1,053,717,000 in 2022, an increase of 9.1%[3] - Investments in associates in Mainland China decreased from HK$6,778,417,000 in 2021 to HK$6,550,270,000 in 2022, a decline of 3.4%[17] - Net realised and unrealised gains on financial assets at fair value through profit or loss increased from HK$14,996,000 in 2021 to HK$17,737,000 in 2022, a rise of 18.3%[19] - Non-current assets increased to HK$7,830,535,000 in 2022 from HK$7,792,705,000 in 2021, driven by growth in financial assets at fair value through other comprehensive income and investment properties[136] - Financial assets at fair value through other comprehensive income declined to HK$606,943,000 in 2022 from HK$805,914,000 in 2021[136] - Investment properties decreased slightly to HK$173,342,000 in 2022 from HK$175,626,000 in 2021[136] Insurance Business - Net earned insurance premiums increased from HK$196,155,000 in 2021 to HK$202,672,000 in 2022, a growth of 3.3%[5] - Net insurance claims incurred for the current year amounted to HK$17.355 million, with reinsurance reducing the net amount to HK$15.898 million[23] - Additional costs for prior years' claims and loss adjustment expenses were HK$29.248 million, with reinsurance reducing the net amount to HK$25.194 million[23] - The increase in claims incurred but not reported was HK$8.833 million, with reinsurance reducing the net amount to HK$7.319 million[23] - The expected cost of claims for unexpired risks increased by HK$55.436 million, with reinsurance reducing the net amount to HK$48.411 million[23] - The risk exposure (total insurance liabilities, net) of Min Xin Insurance at the end of 2022 was HK$203.19 million, a 19.8% increase compared to HK$169.61 million at the end of 2021[34] - Min Xin Insurance has 16 treaty-reinsurers with credit ratings above A- as of 31 December 2022[36] - Net insurance claims incurred and commission expenses increased to HK$146,781 thousand in 2022 from HK$132,184 thousand in 2021[51] - Insurance contracts under current liabilities increased to HK$154,050,000 in 2022 from HK$121,697,000 in 2021[136] Revenue and Income - Interest income calculated using the effective interest method rose from HK$156,160,000 in 2021 to HK$168,186,000 in 2022, an increase of 7.7%[5] - Revenues from external customers in Hong Kong increased from HK$68,931,000 in 2021 to HK$74,178,000 in 2022, a growth of 7.6%[17] - Total revenues for 2022 were HK$181,309 thousand, a decrease from HK$187,934 thousand in 2021[51] - Operating income for 2022 was HK$215,235 thousand, slightly lower than HK$217,854 thousand in 2021[51] - Profit before taxation for 2022 was HK$461,855 thousand, down from HK$509,973 thousand in 2021[51] - Profit for the year decreased to HK$446,365 thousand in 2022 from HK$495,931 thousand in 2021[134] - Other comprehensive income for 2022 showed a net movement in fair value reserve of HK$(222,565) thousand, compared to a positive HK$444,913 thousand in 2021[134] - Exchange translation reserve recorded a loss of HK$602,256 thousand in 2022, compared to a gain of HK$225,409 thousand in 2021[134] - Total comprehensive income for the year was a loss of HK$390,984 thousand in 2022, compared to a gain of HK$1,176,216 thousand in 2021[134] - Profit for the year decreased from HK$495,931,000 in 2021 to HK$446,365,000 in 2022, a decline of 10%[142] Cash Flow and Financing - Net cash outflow from financing activities in 2022 was HK$225,007 thousand, compared to a net inflow of HK$258,777 thousand in 2021[55] - Bank loans obtained in 2022 amounted to HK$734,721 thousand, an increase from HK$626,496 thousand in 2021[55] - Cash and cash equivalents at the end of 2022 were HK$235,285 thousand, down from HK$466,989 thousand at the end of 2021[55] - Net cash inflow from operating activities rose from HK$28,361,000 in 2021 to HK$42,635,000 in 2022, an increase of 50.3%[145] - Dividends received from associates surged from HK$4,754,000 in 2021 to HK$177,635,000 in 2022, a significant increase of 3,636%[145] - Net cash outflow from investing activities decreased from HK$146,695,000 in 2021 to HK$21,815,000 in 2022, a reduction of 85.1%[145] - Net cash inflow before financing activities improved from a net outflow of HK$118,334,000 in 2021 to a net inflow of HK$20,820,000 in 2022[145] Expenses and Costs - Administrative expenses for 2022 were HK$55,372 thousand, slightly higher than HK$54,903 thousand in 2021[51] - The company's five highest paid employees received a total remuneration of HK$10.722 million in 2022, compared to HK$10.719 million in 2021[82] - The company paid HK$1.88 million to Vigour Fine, its controlling shareholder, for management services in both 2022 and 2021[80] - Gross commissions paid and payable amounted to HK$94,067 thousand in 2022, compared to HK$85,857 thousand in 2021[121] - Net commission expenses for insurance business were HK$89,090 thousand in 2022, up from HK$83,773 thousand in 2021[121] - Commissions received and receivable from reinsurers decreased to HK$4,977 thousand in 2022 from HK$2,084 thousand in 2021[121] - Operating profit for 2022 includes a net exchange loss of HK$27,689 thousand, compared to a net exchange gain of HK$3,644 thousand in 2021[124] - Rental income from investment properties decreased to HK$9,301 thousand in 2022 from HK$9,935 thousand in 2021, with direct outgoings also decreasing to HK$791 thousand from HK$936 thousand[124] - Staff costs, including directors' emoluments, slightly decreased to HK$39,625 thousand in 2022 from HK$39,775 thousand in 2021, with retirement benefit costs increasing to HK$1,567 thousand from HK$1,313 thousand[124] - Auditor's remuneration increased to HK$3,110 thousand in 2022 from HK$2,466 thousand in 2021, with provisions for the current year also increasing to HK$2,772 thousand from HK$2,127 thousand[124] - Depreciation and amortisation expenses decreased to HK$1,978 thousand in 2022 from HK$2,096 thousand in 2021, with property, plant, and equipment depreciation decreasing to HK$1,448 thousand from HK$1,528 thousand[124] Dividends and Shareholder Information - Final dividend for 2022 remained unchanged at HK$71,671 thousand, the same as in 2021[51] - Earnings per share (basic and diluted) for 2022 were 74.74 HK cents, down from 83.03 HK cents in 2021[51] - The company's proposed final dividend for 2022 is subject to shareholder approval at the 2023 AGM, with the register of members closing from 28 June to 30 June 2023[92] - The company's proposed dividend for 2022 remained consistent at HK$71,671,000, the same as in 2021[142] Financial Reporting and Compliance - The consolidated financial statements for 2022 were prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and the Hong Kong Companies Ordinance[97] - The audit of the consolidated financial statements was conducted in accordance with Hong Kong Standards on Auditing (HKSAs)[98] - The directors are responsible for assessing the Group's ability to continue as a going concern and disclosing related matters[110] - The auditor evaluated the appropriateness of accounting policies and the reasonableness of accounting estimates made by the directors[117] - The Group's financial information details are provided in note 17 of the consolidated financial statements[102] - The directors confirmed the independence of all independent non-executive directors as per the Hong Kong Listing Rules[94] - The company's public float has been maintained as required under the Listing Rules during the year and up to the date of the annual report[86] - The company continues to adopt the going concern basis of accounting, expecting adequate resources for operational existence in the foreseeable future[149] - The consolidated financial statements are prepared under the historical cost convention, except for certain assets and liabilities stated at fair value[149] - The Group has adopted amendments to HKFRSs issued by the HKICPA, including improvements to HKFRSs 2018-2020[155][156] - HKFRS 17 Insurance Contracts and related amendments establish principles for recognition, measurement, presentation, and disclosure of insurance contracts, replacing HKFRS 4[168] - Amendments to HKFRS 17 defer the initial application date to annual reporting periods beginning on or after 1 January 2023[168] - Amendments to HKFRS 4 extend the temporary exemption from applying HKFRS 9 to annual reporting periods beginning on or after 1 January 2023[168] - The HKICPA issued amendments to HKFRS 17 in February 2022 to address implementation challenges, particularly regarding comparative information[168] - New standards and amendments issued by the HKICPA are not yet effective for the financial year ending 31 December 2022 and have not been early adopted[166] - Amendments to HKAS 1 regarding the classification of liabilities as current or non-current will be effective for annual periods beginning on or after 1 January 2023[167] - Amendments to HKFRS 16 regarding lease liabilities in sale and leaseback transactions will be effective for annual periods beginning on or after 1 January 2024[167] - The Group adopted HKFRS 17 on 1 January 2023, which brings significant changes to the measurement of insurance contract liabilities and requires greater coordination between finance, actuarial, and IT functions[171] - The Group uses three measurement methods for insurance contracts: the General Measurement Model (GMM), the Variable Fee Approach, and the Premium Allocation Approach (PAA), with PAA being a simplified method for short-term contracts[172] - Under HKFRS 17, the Group measures the time value of money using discount rates that reflect the liquidity characteristics of insurance contracts and cash flow characteristics, consistent with observable market prices[174] - The Group applied the modified retrospective approach for the initial application of HKFRS 17 due to the impracticality of obtaining reasonable and supportable information for estimating fulfilment cash flows[178] - The Group expects to apply the PAA to all insurance contracts issued and reinsurance contracts held, with no significant impact on financial position and performance except for presentation and disclosures[178] - The amendments to HKAS 1 and HKFRS Practice Statement 2 replace "significant accounting policies" with "material accounting policy information," which may influence decisions made by primary users of financial statements[180] - Accounting policy information may be material due to the nature of related transactions, even if the amounts are immaterial[180] - The amendments to HKAS 8 define accounting estimates as "monetary amounts in financial statements that are subject to measurement uncertainty"[184] - The Group uses the acquisition method of accounting for business combinations, with consideration transferred based on fair value of assets, liabilities, and equity interests[186] - Identifiable assets acquired and liabilities assumed in a business combination are measured initially at fair value at the date of acquisition[186] - Changes in the Group's interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions[186] - When the company loses control of a subsidiary, it is accounted for as a disposal of the entire interest, with gains or losses recognized in the consolidated income statement[191] - Any retained interest in a former subsidiary is recognized at fair value upon loss of control, treated as a financial asset or investment in an associate[191] - Intra-group transactions, balances, and unrealized profits are fully eliminated in the preparation of consolidated financial statements[192] - Non-controlling interests are presented separately within equity in the consolidated statement of financial position[194] - Loans from non-controlling interest holders are presented as financial liabilities in the consolidated statement of financial position[194] - Investments in subsidiaries are stated at cost less impairment losses in the company's statement of financial position[194] - An associate is defined as an entity where the company has significant influence but not control or joint control over its management[197] Group Structure and Operations - The Group's banking business accounted for 69.7% of the Group's total assets at the end of 2022[33] - The Group's risk exposures in major financial instruments at the end of 2022 were: Stocks: HK$0.2 million, Funds: HK$20.3 million, Structured deposits: RMB635.9 million (equivalent to HK$719.8 million)[36] - The Group's internal controls are designed to improve operational efficiency, prevent misuse of assets, maintain proper accounting records, and ensure compliance with relevant laws and regulations[39] - The impact of COVID-19 on the Group in 2022 was limited, with minimal effects on the businesses of Fujian Minxin Investments Co., Ltd. and Sanyuan Micro Credit, and Min Xin Insurance[39] - The company's five largest suppliers accounted for less than 30% of total purchases, and its five largest customers accounted for less than 30% of total revenue in 2022[85] - The company's charitable and community donations amounted to approximately HK$5,000 in both 2022 and 2021[86] - The company's subsidiary, Min Xin Insurance Company Limited, is subject to the Insurance Authority's supervision and must comply with the Insurance Ordinance's gross premium income limit[85] - The company's bank borrowings and loan from the controlling shareholder at 31 December 2022 are detailed in Notes 28 and 29 of the consolidated financial statements[85] - Mr. Huang Wensheng was appointed as Vice Chairman of the Board and Executive Director effective from 28 February 2023[120] Equity and Liabilities - Total equity attributable to shareholders decreased to HK$8,252,100,000 in 2022 from HK$8,714,581,000 in 2021, reflecting a decline in other reserves[139] - Retained profits increased to HK$5,023,449,000 in 2022 from HK$4,713,622,000 in 2021, indicating improved profitability[139] - Non-current liabilities rose to HK$313,939,000 in 2022 from HK$124,973,000 in 2021, mainly due to new bank borrowings[139] - Share capital remained unchanged at HK$1,715,377,000 in both 2022 and 2021[139] - Total equity increased from HK$7,598,091,000 in 2021 to HK$8,714,581,000 in 2022, reflecting a growth of 14.7%[142] - The company's statutory reserve grew from HK$1,004,410,000 in 2021 to HK$1,046,875,000 in 2022, an increase of 4.2%[142] - Retained profits increased from HK$4,370,646,000 in 2021 to HK$4,713,622,000 in 2022, reflecting a growth of 7.8%[142] - The fair value reserve (non-recycling) decreased from HK$583,691,000 in 2021 to HK$373,176,000 in 2022, a decline of 36.1%[142]

2022年度業績公告 | --- | --- | |-------|--------------------------------------------| | | | | • | 股東應佔溢利港幣 44,637 萬元，下跌 10% | | • | 每股基本盈利港幣 74.74 仙 | | • | 總資產下跌 3.4% 至港幣 93.4 億元 | | • | 股東應佔權益總額下跌 5.3% 至港幣 82.5 億元 | | • | 建議派發末期股息每股普通股港幣 12 仙 | 摘錄自根據香港財務報告準則編制的截至2022年12月31日止年度經審核之綜合 財務報表的財務資料如下： 綜合損益表 截至2022年12月31日止年度 – 2 – 2022年 2021年 本年度溢利 446,365 495,931 不會重新分類至損益表的項目： 應佔聯營公司的其他全面收益 12,050 (1,010) 其後可能重新分類至損益表的項目： (626,834) 236,382 – 3 – 8,566,039 8,839,554 | --- | --- | --- | --- | |------------------------ ...

Financial Performance - For the six months ended June 30, 2022, the Group recorded an unaudited profit attributable to shareholders of HK$234.41 million, a decrease of 9.9% compared to the same period in 2021, primarily due to unrealized foreign exchange losses from the devaluation of Renminbi against Hong Kong dollars[35]. - The unaudited profit attributable to shareholders for the Group was HK$234.41 million in the first half of 2022, a decrease of 9.9% from HK$260.04 million in the same period of 2021[52]. - The profit for the period was HK$234,414,000, a decline of 9.8% compared to HK$260,043,000 in 2021[166]. - Basic and diluted earnings per share fell to HK39.25, down from HK43.54 in the prior year[164]. - Other comprehensive income for the period was negative HK$632,069,000, compared to positive HK$68,301,000 in the same period last year[166]. - Total comprehensive income for the period amounted to negative HK$397,655,000, contrasting with positive HK$328,344,000 in 2021[166]. Assets and Liabilities - Total assets of the Group decreased by 3.8% to HK$9.3 billion as of June 30, 2022, compared to HK$9.67 billion at the end of 2021, mainly due to the devaluation of the investment in Huaneng Power International, Inc.[35]. - The Group's total liabilities were HK$1,055.98 million as of June 30, 2022, up from HK$958.67 million at the end of 2021, resulting in a total liabilities to equity ratio of 12.8%[103]. - The Group's net asset value per share was HK$13.81 as of June 30, 2022, compared to HK$14.59 at the end of 2021[102]. - The total equity attributable to shareholders of the Company decreased to HK$8,245,469,000 from HK$8,714,581,000[171]. Banking and Insurance Operations - Xiamen International Bank Co., Ltd. contributed approximately 105.4% of the Group's results in the first half of 2022, with the Group's share of profit after tax from XIB Group being HK$247.05 million, a decrease of 0.8% compared to HK$249.05 million in the corresponding period of 2021[35]. - The banking business accounted for 69.5% of the Group's total assets as of June 30, 2022, with the net asset value per share reaching HK$13.81, of which 78.4% originated from the investment in XIB[40]. - The banking business of XIB Group reported an unaudited profit after tax of RMB2.33 billion for the first half of 2022, down 0.9% from RMB2.35 billion in the same period of 2021[66]. - Total gross insurance premiums rose by 13.7% to HK$99.83 million in the first half of 2022[45]. - The underwriting profit after management expenses for the insurance business was HK$1.8 million in the first half of 2022, a decrease of 69.1% compared to HK$5.83 million in the same period of 2021[45]. Cash Flow and Financing Activities - For the six months ended June 30, 2022, the net cash inflow from operations was HK$38,370, compared to a net outflow of HK$6,055 in the same period of 2021[179]. - The net cash inflow from investing activities was HK$311,483, compared to HK$121,119 in the previous year[179]. - The net cash outflow from financing activities was HK$224,010, compared to an inflow of HK$5,238 in the previous period[182]. - Cash and cash equivalents increased by HK$134,708, reaching a total of HK$551,600 as of June 30[182]. Shareholder Information - As of June 30, 2022, Samba Limited holds 144,885,000 shares, representing approximately 24.26% of the issued share capital of the Company[154]. - Vigour Fine Company Limited, as the controlling shareholder of Samba, holds a total of 355,552,883 shares, accounting for approximately 59.53% of the issued share capital[154]. - The Company has not received any notifications of interests or short positions in shares from any person other than Directors and the Chief Executive as of June 30, 2022[159]. Corporate Governance and Compliance - The Board of Directors confirmed compliance with all applicable corporate governance code provisions throughout the six months ended June 30, 2022[133]. - The Audit Committee reviewed the Group's accounting principles and practices, focusing on risk management and financial reporting matters for the six months ended June 30, 2022[141]. - The auditor's report on the consolidated financial statements was unqualified and did not contain any emphasis or statements under the Companies Ordinance[197]. Market and Strategic Outlook - The Group plans to continue expanding its local small and micro enterprise customer base and aims to accelerate green credit investments supported by the development of innovative green financial products[40]. - The Group anticipates that the banking business will maintain stable financial performance and achieve sustainable and reasonable value growth in the long term[40].

Financial Performance - Profit attributable to shareholders for 2021 was HK$495,931,000, a decrease from HK$571,486,000 in 2020, representing a decline of approximately 13.2%[9] - Profit before taxation for 2021 was HK$509,973,000, compared to HK$472,187,000 in 2020, indicating an increase of about 8.1%[9] - The income tax expense for 2021 was HK$14,042,000, down from HK$36,125,000 in 2020, reflecting a significant reduction of approximately 61.1%[9] - The five-year financial summary shows a consistent trend in profit attributable to shareholders, peaking at HK$578,090,000 in 2019 before declining in subsequent years[9] - The company has maintained a stable profit before taxation over the past five years, with a notable peak in 2018 at HK$610,526,000[9] - The Group achieved an operating income of HK$217.85 million in 2021, representing a year-on-year increase of 12.8%[18] - Profit attributable to shareholders increased by 13.7% to HK$495.93 million in 2021[20] - Basic earnings per share rose by 13.7% to 83.03 HK cents[20] - Total assets grew by 15.1% to HK$9.67 billion as of December 31, 2021, compared to HK$8.41 billion at the end of 2020[24] - The Group's share of profit after tax from Xiamen International Bank was HK$458.08 million, up 3% from HK$444.78 million in 2020[24] - The total assets of the banking business accounted for 69.5% of the Group's total assets as of December 31, 2021[24] - The net asset value per share reached HK$14.59, with 77.2% derived from the investment in Xiamen International Bank[24] - A final dividend of 12 HK cents per share was proposed for 2021, up from 10 HK cents per share for 2020[24] - The Group's total equity attributable to shareholders was HK$8.71 billion as of December 31, 2021[14] - The Group's performance was achieved amidst ongoing challenges from the COVID-19 pandemic and a slow global economic recovery[19] Strategic Initiatives - The management discussion indicates a focus on market expansion and new product development as key strategies for future growth[9] - The company plans to enhance its technological capabilities to improve operational efficiency and customer service[9] - There is an ongoing evaluation of potential mergers and acquisitions to strengthen market position and diversify offerings[9] - Future guidance suggests a cautious optimism with expected revenue growth driven by strategic initiatives and market recovery[9] Banking and Financial Services - The financial services business reported a profit after tax of HK$467.65 million in 2021, an increase of 15.2% compared to HK$405.99 million in 2020[45] - XIB Group achieved a profit after tax of RMB4.34 billion, an increase of RMB0.29 billion or 7.1% compared to RMB4.05 billion in 2020[48] - Total assets of XIB Group grew by 5.8% to RMB1,007.15 billion as of December 31, 2021, compared to RMB952.28 billion at the end of 2020[49] - Gross loans to customers increased by 7.8% to RMB567.07 billion as of December 31, 2021, compared to RMB526.2 billion at the end of 2020[49] - Total deposits from customers rose by 2.5% to RMB671.5 billion from RMB655.41 billion at the end of 2020[49] - The ratio of impaired loans to total customer loans was 1.06%, lower than the average ratio for commercial banks[51] Insurance Business - The insurance business achieved a total gross insurance premium income of HK$196.16 million in 2021, an increase of 21.9%[38] - Min Xin Insurance recorded gross insurance premiums of HK$196.16 million in 2021, a 21.9% increase from HK$160.86 million in 2020[54] - The underwriting profit of Min Xin Insurance decreased by 7.5% to HK$13.27 million in 2021, compared to HK$14.35 million in 2020[54] Governance and Management - The company has established a strong governance structure with a mix of executive and non-executive directors to ensure balanced decision-making[108] - The management team includes members with significant experience in both government finance and corporate financial management, enhancing the company's operational capabilities[105] - The Company has adopted a Board Diversity Policy to enhance Board effectiveness and corporate governance, considering factors such as gender, age, cultural background, and professional experience[127] - The Company has complied with all applicable code provisions set out in the Corporate Governance Code throughout the year ended 31 December 2021, except for the deviation regarding the appointment term of Non-executive Directors[123] - The Company is committed to maintaining high standards of corporate governance to achieve business objectives and sustainable development[123] Risk Management - The board of directors emphasizes the importance of risk management and internal controls in navigating market challenges[9] - The Group faces various insurance and financial risks, including market risk, credit risk, and liquidity risk[88] - The Group recognizes the potential risks of regulatory non-compliance and actively manages these risks[86] - The Company has implemented a General Manager Meeting under the Executive Committee to exercise delegated authority for daily operations[192] Employee and Human Resources - The Group emphasizes the importance of human resources and provides various employee benefits, including on-the-job training and workshops[79] - The Group had 68 employees, with remuneration based on individual performance and experience[79] - The Company encourages continuous professional development for all Directors, providing training on relevant regulations and standards[178] Environmental and Social Responsibility - The Group prioritizes environmental protection initiatives, promoting energy-efficient practices and encouraging staff to reduce resource consumption[79] - The Company is committed to developing and reviewing its ESG management approach and strategy, including risk evaluation related to ESG[151]