Financial Performance - The Group's insurance revenue for the year amounted to HK$2,799 million, representing an increase of 6.6% compared to HK$2,625 million for the year 2023[16]. - The consolidated profit for the Group was HK$778 million, compared to HK$713 million for the year 2023[16]. - The net profit attributable to equity shareholders of the Company was HK$471 million, an increase from HK$397 million for the year 2023[16]. - The improvement in net profit was mainly due to better overall operating performance, including improved claims experience and effective expense control[16]. - Net operating income increased by 14% to HK$1,134 million in 2024 from HK$991 million in 2023[20]. - Net profit attributable to owners rose by 19% to HK$471 million in 2024 compared to HK$397 million in 2023[21]. - Basic earnings per share increased by 20% to HK$0.12 in 2024 from HK$0.10 in 2023[20]. - Total assets grew by 7% to HK$96,042 million as of December 31, 2024, up from HK$90,149 million in 2023[20]. - The total comprehensive equity increased by 1% to HK$23,913 million at the end of 2024 from HK$23,629 million at the end of 2023[26]. - The profit before taxation for 2024 is HK$1,098 million, a slight increase of 2% from HK$1,078 million in 2023[68]. - Investment return for 2024 rose by 18% to HK$3,706 million from HK$3,133 million in 2023[68]. - The net finance expenses from insurance contracts increased by 35% to HK$3,098 million in 2024 from HK$2,294 million in 2023[68]. - The insurance service result rose to HK$580 million, reflecting a 23% increase from HK$471 million in 2023[79]. - Interest income and other revenues reached HK$2,985 million, an 8% increase from HK$2,759 million in 2023[81]. - The total liabilities increased to HK$76,226 million in 2024, compared to HK$70,049 million in 2023, marking an 8.5% rise[91]. - The net assets decreased to HK$15,838 million in 2024 from HK$16,344 million in 2023, a decline of 3.1%[91]. Revenue Sources and Business Operations - The Group's main sources of revenue include life insurance premium income and various financial services, with no material change in core business activities compared to 2023[15]. - The total premium and fee income for 2024 reached HK$12,383 million, a 4% increase from HK$11,923 million in 2023[40]. - The total premium and fee income from Hong Kong was HK$9,343 million (75% of total), while Macao contributed HK$3,040 million (25%) in 2024[46]. - The tied agency distribution channel generated HK$6,018 million in total premium and fee income, an increase from HK$5,979 million in 2023[48]. - Regular premium first-year income was HK$2,512 million in 2024, compared to HK$2,360 million in 2023[52]. - The insurance division's flagship products include a flexible savings plan, a critical illness protection series, a flexible universal life insurance plan, and a lifetime annuity income plan[35]. - The company continues to enhance its product offerings and diversify its product range to meet various customer needs[35]. - The company launched the "Prosperous Infinity Saver" savings plan at the beginning of 2024, enhancing its product offerings[31]. Market Environment and Strategic Focus - The economic environment faced challenges such as trade protectionism and rising prices, but the Group effectively implemented its business plan to enhance shareholder value[14]. - The Group actively sought suitable business opportunities to expand revenue sources under current market conditions[14]. - The central government's support helped Hong Kong attract more tourists and promote cross-border financial activities, contributing to moderate economic growth[14]. - The Group's financial performance reflects a strategic focus on improving operational efficiency and managing expenses effectively[16]. - The Group's strategic focus continues to be on expanding its insurance business, aiming to enhance market scale and influence[117]. - The insurance division will undergo restructuring initiatives to enhance financial performance amid challenging market conditions[113]. Employee and Agent Statistics - The tied agency force consisted of approximately 2,979 agents in Hong Kong and Macao as of December 31, 2024, down from 3,050 in 2023[32]. - The number of exclusive agents in Hong Kong and Macao decreased to approximately 2,979 in 2024 from 3,050 in 2023[36]. - The insurance division employed approximately 545 staff in 2024, up from 518 in 2023[36]. - The number of employees in Hong Kong increased to 508 in 2024 from 478 in 2023, while the number of tied agents decreased slightly from 2,172 to 2,155[108]. - The Group employed 626 full-time employees as of December 31, 2024, an increase from 611 in 2023[143]. Investment and Financial Management - The Group's investment pledged to a broker for securities margin trading was HK$381.305 million as of December 31, 2024[139]. - The Group's technical reserves guaranteed to the Autoridade Monetaria de Macau amounted to HK$20,188.874 million as of December 31, 2024, compared to HK$18,717.825 million in 2023[139]. - The Group's outstanding bank borrowings as of December 31, 2024, were HK$1,385 million, slightly down from HK$1,399 million in 2023[118]. - The gearing ratio as of December 31, 2024, was 16.16%, up from 15.61% in 2023[118]. - The expected timeline for fully utilizing the remaining proceeds is on or before December 31, 2027[159]. - The company aims to generate stable investment returns through its treasury management model, primarily utilizing proceeds for general working capital and principal investments[162]. Embedded Value and New Business Metrics - The embedded value of the insurance business as of December 31, 2024, is HK$21,089 million, representing a 2% increase from HK$20,718 million as of December 31, 2023[57][58]. - The adjusted net worth (ANW) increased by 68% to HK$16,939 million in 2024 from HK$10,108 million in 2023[60]. - The value of in-force (VIF) business decreased by 61% to HK$4,150 million in 2024 from HK$10,610 million in 2023[60]. - The new business value for the year ended December 31, 2024, is HK$685 million, down from HK$1,009 million in the previous year, primarily due to changes in product mix[61][63]. - The annual premium equivalent (APE) for 2024 is HK$2,736 million, remaining stable compared to the previous year, with a 28.3% growth in the agent channel[61][63]. - The New Business Value before cost of capital for the past 12 months as of December 31, 2024, is HK$833 million, down from HK$1,232 million in 2023, a decrease of approximately 32.4%[199]. - The New Business Value after cost of capital is HK$685 million in 2024, compared to HK$1,009 million in 2023, reflecting a decline of approximately 32.0%[199]. Risk Management and Compliance - The Group's insurance risk management includes pre-launch reviews for new products to align with the Group's risk appetite[126]. - Management is enhancing business processes and integrating financial technology to create value for all customers[121]. - PricewaterhouseCoopers Limited has been appointed to review the methodology and assumptions used in the preparation of the Embedded Value as of December 31, 2024[190]. - The calculations of Embedded Value and New Business Value are based on certain assumptions regarding future experience, which may lead to significant differences in actual results[191].

Financial Performance - For the fiscal year ending December 31, 2024, the insurance revenue was HKD 2.799 billion, an increase of 6.6% compared to HKD 2.625 billion in the previous year[7]. - The consolidated profit for the year was HKD 778 million, up from HKD 713 million in the previous year, representing a growth of 9%[13]. - The profit attributable to equity shareholders increased to HKD 471 million, a 19% rise from HKD 397 million in the previous year[13]. - The net operating profit for the year was HKD 1.134 billion, reflecting a 14% increase from HKD 991 million in the previous year[8]. - Total assets as of December 31, 2024, amounted to HKD 96.042 billion, a 7% increase from HKD 90.149 billion in the previous year[9]. - The total equity attributable to owners increased to HKD 16.168 billion, a slight rise of 1% from HKD 16.045 billion in the previous year[9]. - The basic earnings per share for the year was HKD 0.12, representing a 20% increase from HKD 0.10 in the previous year[8]. - The net operating profit from the insurance segment was HKD 1.167 billion, up 13% from HKD 1.036 billion in the previous year[13]. - The company's profit for the year 2024 was HKD 778 million, an increase of 9.1% compared to HKD 713 million in 2023[15]. - Total premium and fee income for 2024 reached HKD 12,383 million, representing a 4% growth from HKD 11,923 million in 2023[22]. Insurance Segment Performance - The insurance business's embedded value as of December 31, 2024, was HKD 210.89 billion, up from HKD 207.18 billion in 2023, reflecting a 1.3% increase[27]. - The number of effective individual policyholders increased to over 537,000 in 2024, compared to 536,000 in 2023[18]. - The company launched four flagship insurance products in 2024, including a flexible savings plan and a critical illness protection series[17]. - The total premium income from Hong Kong was HKD 9,343 million (75% of total), while Macau contributed HKD 3,040 million (25%) in 2024[24]. - The adjusted net worth of the insurance business was HKD 16,939 million in 2024, a significant increase of 68% from HKD 10,108 million in 2023[28]. - The new business value for the insurance segment for the year ended December 31, 2024, was HKD 685 million, down from HKD 1,009 million last year, primarily due to changes in the product mix[29]. - The annualized new premiums for 2024 were HKD 2,736 million, remaining stable compared to last year, with a notable 28.3% growth in the agency channel compared to 2023[29]. - Insurance revenue for 2024 was HKD 2,801 million, an increase of 7% from HKD 2,627 million in 2023[33]. Investment and Assets - Investment returns rose by 18% to HKD 3,706 million, up from HKD 3,133 million in the previous year[33]. - Total assets for the insurance segment reached HKD 92,064 million as of December 31, 2024, compared to HKD 86,393 million in 2023[42]. - The total liabilities for the insurance segment increased to HKD 76,226 million from HKD 70,049 million in the previous year[42]. - The total managed assets for the insurance business amounted to HKD 883.79 billion as of December 31, 2024, compared to HKD 843.84 billion in 2023[43]. Risk Management - The group is actively managing strategic risks associated with integrating insurance into its financial services ecosystem[58]. - The group has identified various insurance risks, including product design risk and claims risk, and has implemented measures to mitigate these[59]. - The risk management function identified, monitored, and reported various risks, implementing corresponding risk mitigation measures throughout the year[142]. - Regulatory risks are closely monitored, with the company actively engaging with market regulators to adapt to changes in the regulatory environment[158]. - The company utilizes reinsurance to alleviate underwriting risks associated with mortality and morbidity assumptions[159]. Corporate Governance - The company maintains a high standard of corporate governance to attract and retain talented management, promote accountability, and meet shareholder expectations[114]. - The board consists of at least three independent non-executive directors, ensuring independent judgment and consideration of all shareholders' interests[117]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance with the standard code throughout the year[115]. - The company has complied with the applicable corporate governance code provisions, with one exception explained in the report[114]. - The independent non-executive directors have confirmed their independence as per the listing rules, ensuring no significant interests in the group[117]. Shareholder Information - The company has no established dividend payout ratio, with dividends subject to board approval based on performance and financial conditions[151]. - The board of directors does not recommend the payment of a final dividend for the year 2023, resulting in no dividend distribution[170]. - The company has established a process for shareholders to submit inquiries to the board through the company secretary[150]. - The company encourages shareholder attendance at annual general meetings, with key members of the board present to address business-related questions[151].

Financial Performance - For the first half of 2024, the Group's insurance revenue amounted to HK$1,378 million, representing a 10% increase compared to HK$1,257 million for the prior period[12]. - The Group's consolidated profit for the period was HK$376 million, up from HK$267 million in the prior period[12]. - Net profit attributable to equity shareholders of the Company was HK$201 million, compared to HK$138 million for the prior period, primarily due to improved overall operating performance and a one-off financial incentive[12]. - Net operating income for 2024 reached HK$560 million, a 12% increase from HK$498 million in 2023[16]. - Net profit attributable to the owners rose by 46% to HK$201 million, compared to HK$138 million in the previous year[22]. - Basic earnings per share increased by 25% to HK$0.05 from HK$0.04[16]. - The profit before taxation increased by 28% to HK$619 million from HK$483 million in the previous year[61]. - The profit after taxation rose by 36% to HK$558 million from HK$409 million in the previous year[61]. - The insurance service result, which includes investment return, rose by 33% to HK$327 million from HK$245 million[61]. - The total comprehensive income for the period was HK$(77,113), a decrease from HK$94,610 in 2023, primarily due to net movement in hedging reserve[189]. Revenue Sources and Business Activities - The Group's main sources of revenue include life insurance premium income and other financial businesses, with no material change in core business activities compared to 2023[11]. - Total premium and fee income for the six months ended June 30, 2024, was HK$5,517 million, a 2% increase from HK$5,436 million in 2023[39]. - Sales from Hong Kong accounted for 73% of total premium and fee income, amounting to HK$4,036 million, while Macao contributed 27% with HK$1,481 million[44]. - The first year regular premium for Hong Kong was HK$603 million, while renewal premiums reached HK$3,257 million for the six months ended June 30, 2024[47]. Assets and Liabilities - Total assets as of June 30, 2024, were HK$93,268 million, reflecting a 3% increase from HK$90,149 million at the end of 2023[17]. - The total liabilities increased to HK$73,214 million from HK$70,049 million as of December 31, 2023[73]. - The net assets as of June 30, 2024, were HK$16,454 million, slightly up from HK$16,344 million at the end of 2023[73]. - The insurance contract liabilities amounted to HK$66,931 million as of June 30, 2024, compared to HK$63,577 million as of December 31, 2023, showing an increase of 5.9%[92]. Investment and Financial Management - The investment income for the insurance division is monitored through a detailed asset allocation strategy[75]. - Interest income for the six months ended June 30, 2024, was HK$1,458 million, an increase from HK$1,309 million in 2023, representing a growth of 11.4%[79]. - The net finance expenses from insurance contracts increased by 49% to HK$1,629 million compared to HK$1,090 million in the previous year[61]. - The company reported a net impairment loss on financial assets of HK$3,144, a significant decrease from HK$62,254 in the previous year, indicating improved asset quality[184]. Operational Strategies and Market Position - The Group is actively seeking suitable business opportunities to expand revenue sources and enhance shareholder value amid challenges in the insurance industry[11]. - The digitalization and virtualization of the insurance industry present challenges that the Group is addressing to enhance competitiveness[11]. - The company plans to explore new partnerships with fintech companies to enhance its bancassurance distribution channel[31]. - The Group plans to continue focusing on the insurance business and expanding the market size and influence of YF Life in the second half of the year[96]. Employee and Governance - The Group employed 631 full-time employees as of June 30, 2024, an increase from 611 employees as of December 31, 2023[108]. - The Company has adopted share option and share award schemes to recognize employee contributions and enhance operational performance[143]. - The remuneration of Mr. Fang Lin, the CEO, has been adjusted to HK$3,960,000 per annum effective from March 1, 2024[6][169]. - The Company has complied with the applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2024[5][164]. Shareholder Information - As of June 30, 2024, Mr. Yu Feng holds 1,827,641,279 shares of Yunfeng Financial Group Limited, representing 47.25% of the total shareholding[137]. - Massachusetts Mutual Life Insurance Company holds 960,000,000 Shares, representing 24.82% of the total shareholding[156]. - The total number of share options that could be granted under the Share Option Scheme is 386,799,167, representing approximately 10% of the total Shares in issue as of the adoption date on 28 June 2022[144].

Financial Performance - The insurance revenue for the first half of 2024 was HKD 1.378 billion, a 10% increase from HKD 1.257 billion in the same period last year[6]. - The consolidated profit for the first half of 2024 was HKD 376 million, compared to HKD 267 million in the same period last year, representing a 41% increase[9]. - The net profit attributable to equity shareholders for the first half of 2024 was HKD 201 million, up 46% from HKD 138 million in the same period last year[9]. - The basic earnings per share for the first half of 2024 was HKD 0.05, a 25% increase from HKD 0.04 in the same period last year[7]. - The total premium and fee income for the six months ended June 30, 2024, was HKD 5,517 million, a slight increase of 1.5% from HKD 5,436 million in the same period of 2023[15]. - The total first-year premium income for the six months ended June 30, 2024, was HKD 1,362 million, compared to HKD 1,362 million in the same period of 2023[20]. - The total renewal premium income for the same period was HKD 4,655 million, an increase from HKD 3,809 million in 2023[20]. - The company reported a net operating income of HKD 573 million, up 6% from HKD 540 million[29]. - The total investment income for the six months ended June 30, 2024, was HKD 1,458 million, an increase from HKD 1,309 million in the same period of 2023, reflecting a growth of 11.4%[39]. - The company reported a profit for the period of HKD 200,994,000, down from HKD 376,442,000 in the previous period[95]. Assets and Liabilities - The total assets as of June 30, 2024, were HKD 93.268 billion, a 3% increase from HKD 90.149 billion at the end of 2023[7]. - The total liabilities increased to HKD 73,214 million as of June 30, 2024, from HKD 70,049 million as of December 31, 2023, reflecting a rise of 3.1%[33]. - The insurance contract liabilities amounted to HKD 66,931 million as of June 30, 2024, compared to HKD 63,577 million as of December 31, 2023, indicating an increase of 5.3%[41]. - The total assets revaluation reserve was HKD 1,575,000, while the fair value reserve (non-recyclable) was HKD (22,233,000) as of June 30, 2024[95]. - The total liabilities reported were HKD (76,856,658) as of June 30, 2024, compared to HKD (73,744,074) as of December 31, 2023, showing an increase of about 4.3%[146]. Equity and Shareholder Information - The total equity as of June 30, 2024, was HKD 16.328 billion, showing no significant change from HKD 16.405 billion at the end of 2023[7]. - The company did not declare an interim dividend for the first half of 2024, which is not applicable[7]. - Major shareholder Yu Feng holds 1,827,641,279 shares, representing 47.25% of the total shares[76]. - Massachusetts Mutual Life Insurance Company owns 960,000,000 shares, which is 24.82% of the total shares[76]. - The company has no treasury shares as of June 30, 2024, in compliance with the relevant company regulations[79]. Business Strategy and Market Conditions - The group is actively seeking suitable business opportunities to broaden revenue sources and enhance shareholder value amid market challenges[6]. - The overall economic growth in Hong Kong was supported by various measures from the central government, despite geopolitical tensions and uncertainties in interest rates[6]. - The company aims to expand its distribution channels through brokers and agents, as well as explore partnerships with fintech companies[13]. - The company plans to focus on expanding the market scale and influence of its insurance business in the second half of 2024[48]. Employee and Workforce Information - The company had approximately 2,999 exclusive agents in Hong Kong and Macau as of June 30, 2024, a decrease from 3,050 agents as of December 31, 2023[13]. - The company reported 538 employees in the insurance division, an increase from 518 employees as of December 31, 2023[13]. - The number of employees in Hong Kong increased to 501 as of June 30, 2024, from 478 as of December 31, 2023, indicating a growth in workforce[45]. - The group employed 631 full-time employees as of June 30, 2024, an increase from 611 employees as of December 31, 2023[53]. Risk Management - The group manages insurance risk through prudent pricing guidelines, reinsurance, and monitoring emerging trends[106]. - The group has established an underwriting committee to oversee and evaluate insurance risk policies and procedures[106]. - The group manages liquidity risk by setting a minimum level of liquid funds available for claim payments and policy surrenders[109]. - Interest rate risk is controlled through asset-liability matching techniques, considering the cash flow characteristics of assets and liabilities[110]. - Currency risk is primarily associated with non-USD denominated policies, but most policies are USD-denominated, minimizing the overall currency risk[111]. Investment and Fair Value Measurements - The fair value of financial assets measured at fair value through profit or loss includes private credit funds valued at HKD 207,655,000 and listed equity valued at HKD 508,896,000[117]. - The fair value of debt securities is reported at HKD 2,352,897,000, with a total of HKD 18,270,806,000 for the period ending June 30, 2024[118]. - The company primarily uses market or income approaches to determine estimated fair value, maximizing observable inputs and minimizing unobservable inputs[118]. - The fair value of financial liabilities primarily depends on the fair value of fund investments and credit-linked debt as major investments in merged funds[123]. Regulatory Compliance - The company actively monitors compliance with regulatory requirements to mitigate reputational and compliance risks[156]. - The risk-based capital regime for the Hong Kong insurance industry will be officially implemented on July 1, 2024[60]. - The group has no significant impact from the adoption of revised Hong Kong Financial Reporting Standards during the accounting period[104].

Financial Performance - The Group's insurance revenue for the year amounted to HK$2,625 million, representing a 7% increase from HK$2,447 million in 2022[9]. - The consolidated profit for the year was HK$713 million, compared to a consolidated loss of HK$664 million in 2022[9]. - The net profit attributable to equity shareholders was HK$397 million, a significant recovery from a net loss of HK$643 million in the previous year[9]. - Net operating income for 2023 was HK$991 million, a 17% increase from HK$850 million in 2022[12]. - Net profit attributable to owners for 2023 was HK$397 million, compared to a loss of HK$643 million in 2022[12]. - Total premium and fee income for 2023 reached HK$11,923 million, a 4% increase from HK$11,446 million in 2022[30]. - The insurance service result increased by 24% to HK$547 million in 2023, compared to HK$440 million in 2022[49]. - Profit before taxation for the year is HK$1,078 million, a significant increase from HK$51 million in 2022, marking a 20 times growth[49]. - Profit after taxation for 2023 is HK$973 million, a dramatic rise from HK$3 million in 2022, indicating a 323 times increase[49]. - Investment return for the insurance segment is HK$3,133 million, a substantial increase from HK$36 million in 2022, reflecting an 86 times growth[49]. Business Operations - The Group's main revenue sources include life insurance premium income, subscription fees, management fees, platform fees, and brokerage commission income[8]. - The Group's business plan was effectively implemented amidst challenges and opportunities during the economic recovery[8]. - There was no material change in the Group's core business activities compared to 2022[9]. - The insurance division had approximately 536,000 in-force individual policies as of December 31, 2023, up from 529,000 in 2022[23]. - The tied agency force consisted of approximately 3,050 agents in 2023, down from 3,204 in 2022[23]. - The insurance division introduced flagship products including "FLEXI-ULife Prime Saver" and "MY Flexi Lifetime Annuity" to enhance its product suite[22]. - The company aims to expand its brokerage and agency intermediary distribution channels to better serve sophisticated customers[24]. - The company is exploring new partnerships with fintech companies to tap into the online customer segment[24]. - The company is focused on innovation, launching new savings, medical, and annuity products to drive business growth[26]. Financial Position - Total assets increased by 10% to HK$90,149 million in 2023 from HK$81,769 million in 2022[13]. - Owner's equity per share remained stable at HK$2.85 for both 2023 and 2022[13]. - The overall net asset value of the Group increased due to the adoption of HKFRS 17, impacting the carrying value of insurance contract liabilities and assets[19]. - Total assets under management (AUM) for the insurance business reached HK$84,384 million as of December 31, 2023, up from HK$76,185 million in 2022, reflecting a growth of 10.9%[71]. - Total liabilities rose to HK$70,049 million in 2023, up from HK$61,726 million in 2022, indicating a growth of 13.5%[68]. - The total insurance contract liabilities amounted to HK$63,577 million as of December 31, 2023, compared to HK$55,054 million in 2022, reflecting an increase of 15.4%[68]. - The adjusted net worth (ANW) as of December 31, 2023, is HK$10,108 million, down from HK$10,610 million in 2022, indicating a decrease of 4.7%[43]. - The value of in-force (VIF) business decreased to HK$10,610 million from HK$11,645 million, representing a decline of 8.9%[43]. Risk Management and Governance - The management emphasizes the importance of integrating the insurance business with the financial service ecosystem to create value for customers[104]. - The management has identified key risks, including product design risk and lapse risk, and has implemented measures to mitigate these risks[105][109]. - The company is focused on maintaining a cautious underwriting and investment strategy in an uncertain macroeconomic environment[100]. - The company is enhancing its business processes and integration with financial technology to address uncertainties and improve risk management[104]. - The company is committed to maintaining high standards of corporate governance to attract and retain talented management and enhance shareholder value[188]. - The board has been reviewing and enhancing its risk management and internal controls in light of regulatory changes and best practices[188]. - The company has adopted and complied with the applicable code provisions of the Corporate Governance Code during the year[189]. Corporate Structure and Leadership - Mr. Huang Xin served as the interim CEO from September 2022 to July 2023, and is currently a partner at Yunfeng Capital[170]. - The company has a diverse board with members having extensive experience in finance, law, and corporate governance[173][175][179]. - The board includes members with significant prior roles in major corporations and financial institutions, enhancing its strategic oversight capabilities[173][175][179]. - The company has independent non-executive directors with extensive experience in finance and corporate governance[187]. - The Board comprises a balance of skills, experience, and diversity, with at least one-third being independent non-executive Directors[192]. - The Company held a total of 5 Board meetings and 1 general meeting during the year ended December 31, 2023[198]. - The Chairman and CEO roles are distinct, with the Chairman providing leadership and the CEO managing day-to-day operations[196]. - The Company ensures that at least one independent non-executive Director has appropriate professional qualifications or financial management expertise[192].

Financial Performance - The insurance revenue for the year ended December 31, 2023, was HKD 2.625 billion, a 7% increase from HKD 2.447 billion in the previous year[4]. - The consolidated profit for the year was HKD 713 million, compared to a loss of HKD 664 million in the previous year[8]. - The net operating income for the year was HKD 991 million, representing a 17% increase from HKD 850 million in the previous year[6]. - The equity attributable to owners was HKD 3.97 billion, a significant recovery from a loss of HKD 6.43 billion in the previous year[4]. - Total assets increased to HKD 90.149 billion from HKD 81.769 billion, reflecting a growth of approximately 10.6%[7]. - The basic earnings per share for the year was HKD 0.10, compared to a loss per share of HKD 0.17 in the previous year[6]. - The net profit after tax for the year is HKD 973 million, a significant increase of 323 times compared to HKD 3 million in the previous year[26]. - The company reported a significant increase in pre-tax profit to HKD 1.078 billion, compared to HKD 51 million in the previous year, marking a 20-fold increase[23]. Insurance Segment Performance - The net operating income from the Wan Tong Insurance segment was HKD 1.036 billion, a 7% increase from HKD 970 million in the previous year[8]. - The total premium and fee income increased to HKD 11,923 million in 2023, up from HKD 11,446 million in 2022, representing a growth of approximately 4.2%[14]. - The insurance business segment's premium income from Hong Kong rose to HKD 7,969 million (67% of total) in 2023, compared to HKD 6,978 million (61% of total) in 2022[16]. - The Macau segment's premium income decreased to HKD 3,954 million (33% of total) in 2023, down from HKD 4,468 million (39% of total) in 2022[16]. - The total premium income from first-year regular premiums was HKD 2,360 million in 2023, compared to HKD 2,367 million in 2022[18]. - The total premium income from renewal premiums reached HKD 9,046 million in 2023, up from HKD 8,543 million in 2022[18]. - The new business value for the insurance segment is HKD 1.009 billion for the year ended December 31, 2023, compared to HKD 758 million for the same period last year, representing a growth of 33%[21]. Investment Performance - The group reported a significant reduction in investment fair value losses compared to the previous year, contributing to the overall profit[4]. - Investment income rose by 18% to HKD 839 million from HKD 714 million year-on-year[26]. - Total investment income for the year ended December 31, 2023, was HKD 2.682 billion, up from HKD 2.354 billion in 2022, while dividend income decreased to HKD 132 million from HKD 233 million[33]. - The effective business value decreased by 9% to HKD 10.610 billion from HKD 11.645 billion in the previous year[20]. - The total amount of collateral provided for bank financing was HKD 26.66 million, up from HKD 23.84 million in 2022[52]. Operational Efficiency - The expense ratio improved to 8.7% in 2023 from 9.8% in 2022, reflecting better operational efficiency[39]. - The company aims to enhance its distribution channels by strengthening partnerships with banks and exploring collaborations with fintech companies[12]. - The company introduced new savings, medical, and annuity products targeting key customer segments to drive business growth[12]. - The company plans to maintain a cautious underwriting and investment strategy amid an unclear global macroeconomic outlook, focusing on enhancing product and service quality[44]. Corporate Governance - The board includes experienced members with backgrounds in finance, law, and management, enhancing corporate governance and strategic oversight[80][82]. - The company has a strong emphasis on compliance and governance, with legal and regulatory oversight being a priority[80]. - The independent directors bring diverse expertise, including financial management, corporate governance, and strategic development, which supports the company's growth initiatives[82][84]. - The company maintains a high standard of corporate governance, which is essential for effective management and sustainable business growth[85]. - The board has established mechanisms to ensure independent opinions are obtained, including the appointment of independent non-executive directors[96]. Risk Management - The company has established a risk management policy to mitigate identified risks and uncertainties affecting its financial condition and operations[121]. - The risk management framework includes three lines of defense, with the first line being senior management responsible for risk management policies[109]. - The company aims to balance risk and growth through appropriate risk management and internal controls[107]. - The company has implemented a comprehensive cybersecurity policy to manage risks related to information security and ensure data confidentiality[194]. Employee Engagement and Development - The company emphasizes a diverse and inclusive workplace, adhering to equal employment opportunity policies[178]. - Employee turnover rate for 2023 was 29.77%, with male turnover at 23.51% and female turnover at 35.29%[182]. - Training participation rates were 86.2% for male employees and 91.5% for female employees[186]. - The company reported zero work-related fatalities and zero work injuries for the fiscal year 2023[185]. - Comprehensive employee benefits include stock options, retirement, medical benefits, and insurance coverage[177]. Shareholder Communication - The company has adopted a shareholder communication policy to provide clear and comprehensive information regarding its performance[117]. - The company encourages shareholder participation in annual general meetings, with all resolutions voted on by shareholders[117]. - The board ensures effective communication with shareholders and adheres to the principles of transparency and accountability[87]. Related Party Transactions - The company has ongoing related party transactions with Barings LLC, which serves as an investment advisor for Massachusetts Mutual Life Insurance[155]. - The investment advisory agreement with Barings LLC has been automatically renewed for an additional year after its initial term[155]. - The company has confirmed that all related party transactions for the year were conducted on normal commercial terms and were approved by the board[159]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the period from January 1, 2023, to December 31, 2023, including operations in Hong Kong, Macau, and mainland China[169]. - The group employs a top-down approach to manage ESG matters, with the board regularly reviewing the effectiveness of risk management and internal control systems[171]. - Stakeholder engagement is prioritized, with communication channels established for employees, shareholders, regulatory bodies, customers, business partners, media, and the community[173].

Financial Performance - For the first half of 2023, the Group's insurance revenue was HK$1,257 million, a 3% increase from HK$1,221 million in the prior period[13]. - The Group reported a consolidated profit of HK$267 million, compared to a consolidated loss of HK$496 million in the prior period[13]. - Net profit attributable to equity shareholders was HK$138 million, a significant recovery from a net loss of HK$482 million in the prior period[13]. - Net operating income for the first half of 2023 increased by 7% to HK$498 million, compared to HK$466 million in 2022[17]. - The net profit attributable to owners for the period was HK$138 million, a significant recovery from a loss of HK$482 million in the previous year[17]. - Profit before taxation for the period was HK$483 million, compared to a loss of HK$102 million in the same period last year, indicating a turnaround[58]. - Profit after taxation for the six months ended June 30, 2023, was HK$409 million, recovering from a loss of HK$123 million in the same period of 2022[58]. - The company reported a profit for the period of HK$266,939,000, a significant recovery from a loss of HK$495,543,000 in the same period of 2022[179]. - Total comprehensive income for the period was HK$94,610,000, a significant improvement from a total comprehensive loss of HK$156,637,000 in the previous year[182]. Revenue Sources - The Group's main revenue sources include life insurance premium income, subscription fees, management fees, platform fees, administration fees, and brokerage commission income[12]. - Total premium and fee income for the first half of 2023 reached HK$6,469 million, a 14% increase from HK$5,695 million in 2022[38]. - The insurance division's business volume from Hong Kong was HK$3,949 million (61% of total), while Macao contributed HK$2,520 million (39%)[42]. - The tied agency distribution channel generated HK$2,271 million in Hong Kong, while brokers and non-tied agencies contributed HK$611 million[44]. - The bancassurance distribution channel in Hong Kong accounted for HK$1,374 million, with banks and other financial institutions contributing HK$808 million[44]. Asset and Equity Management - Total assets as of June 30, 2023, rose by 5% to HK$86,176 million, up from HK$81,769 million at the end of 2022[18]. - The total equity increased by 1% to HK$16,355 million, compared to HK$16,262 million at the end of 2022[18]. - The company reported net finance expenses from insurance contracts of HK$657,939,000, a decrease from HK$5,597,258,000 in the previous year, indicating a significant reduction in expenses[182]. - The net assets of the company stood at HK$16,354,733,000 as of June 30, 2023, compared to HK$16,261,698,000 at the end of 2022, showing a slight increase of 0.57%[187]. - The total equity attributable to equity shareholders was HK$11,872,683,000, unchanged from the previous period, while non-controlling interests increased to HK$11,019,706,000 from HK$11,007,330,000[187]. Investment Performance - The fair value loss of the Group's investments significantly decreased compared to the same period last year, contributing to the improved net profit[13]. - The company reported a significant increase in investment return, amounting to HK$1,468 million, compared to a loss of HK$926 million in the previous year[58]. - Investment income for the six months ended June 30, 2023, totaled HK$1,309 million, up from HK$1,143 million in the same period of 2022, indicating a year-over-year increase of approximately 14.5%[76]. - The increase in net financial result from investment return is attributed to improved market conditions and asset price changes[65]. Business Operations and Strategy - The Group effectively implemented its business plan while actively seeking suitable business opportunities to enhance revenue sources and shareholder value[11]. - The Group continues to focus on expanding its revenue sources and enhancing shareholder value amidst economic recovery challenges[11]. - The company is focusing on expanding its brokerage and agency intermediary distribution channels to better serve sophisticated customers[31]. - New savings, medical, and annuity products are being introduced to support business growth and channel development[32]. - The company is exploring partnerships with fintech companies to tap into the online customer segment[31]. Regulatory and Accounting Changes - The adoption of the new accounting standard HKFRS 17 had no impact on the underlying economics of the business, only affecting the presentation of financial statements[13]. - The Group has initially applied HKFRS 17 from January 1, 2023, resulting in significant changes to the accounting for insurance and reinsurance contracts[200]. - The Group has restated certain comparative amounts due to the adoption of HKFRS 17 and related redesignation of financial assets under HKFRS 9[200]. - The condensed consolidated interim financial statements for the six months ended 30 June 2023 have been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34, Interim financial reporting[193]. Employee and Operational Metrics - The number of in-force individual policies increased to over 534,000 as of June 30, 2023, up from 529,000 at the end of 2022[29]. - The tied agency force consisted of approximately 3,121 agents as of June 30, 2023, a slight decrease from 3,204 agents at the end of 2022[29]. - The number of employees decreased to 532 as of June 30, 2023, down from 603 as of December 31, 2022[107]. - The number of tied agents in Hong Kong decreased to 2,209 from 2,250 year-over-year[89]. Shareholder Information - The company proposed no interim dividend per share for the period[17]. - The Group did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[108]. - The total gross proceeds from the subscription shares issue amounted to HK$2,043,588,934, with net proceeds of HK$2,040,588,934[112]. - As of June 30, 2023, HK$1,224.6 million of the net proceeds was allocated for strategic investments, expected to be fully utilized by December 31, 2024[113].

Financial Performance - For the six months ended June 30, 2023, the insurance revenue was HKD 1.257 billion, a 3% increase from HKD 1.221 billion in the same period last year[6]. - The consolidated profit for the period was HKD 267 million, compared to a consolidated loss of HKD 496 million in the previous year[10]. - Net operating income for the first half of 2023 was HKD 498 million, representing a 7% increase from HKD 466 million in the same period of 2022[7]. - The company recorded a net profit attributable to equity shareholders of HKD 138 million, a significant turnaround from a net loss of HKD 482 million in the previous year[10]. - The total premium and fee income for the six months ended June 30, 2023, was HKD 6,469 million, representing a 14% increase from HKD 5,695 million in the same period of 2022[16]. - The net profit for the period is HKD 409 million, a significant recovery from a loss of HKD 123 million in the same period last year[29]. - The company reported a pre-tax profit of HKD 483 million, compared to a loss of HKD 102 million in the same period last year, indicating a turnaround in financial performance[26]. - The net profit for the group for the period was HKD 266,939,000, compared to a loss of HKD 495,543,000 for the same period in 2022[188]. Assets and Liabilities - The total assets as of June 30, 2023, increased by 5% to HKD 86.176 billion from HKD 81.769 billion in the previous year[9]. - The total liabilities as of June 30, 2023, were HKD 66,018 million, up from HKD 61,723 million as of December 31, 2022, reflecting an increase of 6.5%[32]. - The total assets as of June 30, 2023, amounted to HKD 108,423,318,000, while total liabilities amounted to HKD 93,141,241,000, resulting in a net asset value of HKD 15,282,077,000[140]. - The total liabilities reported as of June 30, 2023, were HKD 69,909,555,000, an increase from HKD 65,569,304,000 as of December 31, 2022[187]. Equity and Dividends - The total equity increased by 1% to HKD 16.355 billion from HKD 16.262 billion in the previous year[9]. - The company did not declare an interim dividend for the period[8]. - The board did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[51]. - The total equity attributable to equity shareholders as of June 30, 2023, was HKD 11,019,706, compared to HKD 11,536,767 as of December 31, 2022, showing a decline of approximately 4.5%[88]. Investment Performance - The company reported a significant reduction in investment fair value losses compared to the previous year, contributing to the net profit for the period[6]. - Investment income for the six months ended June 30, 2023, is HKD 455 million, representing a 32% increase from HKD 345 million in the previous year[29]. - The total investment income for the six months ended June 30, 2023, was HKD 1,309 million, up from HKD 1,143 million in the same period of 2022, representing a growth of 14.5%[36]. - The company recorded investment income of HKD 4,856,981 for the six months ended June 30, 2023, significantly higher than HKD 2,793,784 in the same period of 2022, marking an increase of approximately 74%[89]. Business Strategy and Operations - The company actively seeks suitable business opportunities to broaden revenue sources and enhance shareholder value amid economic challenges[6]. - The company aims to enhance its distribution channels by expanding partnerships with banks and fintech companies to reach online customers[14]. - The company has introduced new savings, medical, and annuity products targeting key customer segments to drive business growth[14]. - The group has streamlined its operations into two segments: insurance business and other financial services, reflecting a strategic focus on long-term business development goals[186]. Employee and Corporate Governance - The company has adopted a share option scheme and a share incentive plan to retain and reward employees and directors for their contributions[64]. - The group has established a reinsurance committee to oversee and review reinsurance activities regularly[146]. - The company has complied with the corporate governance code as per the listing rules during the six months ending June 30, 2023[75]. - The group actively monitors compliance with regulatory requirements to minimize reputational and regulatory compliance risks[198]. Accounting Standards and Financial Reporting - The company adopted the new accounting standard HKFRS 17 for insurance contracts, which did not affect the fundamental economic situation of the business[6]. - The financial report for the six months ending June 30, 2023, is prepared in accordance with the Hong Kong Financial Reporting Standards, specifically HKFRS 34[91]. - The group has adopted HKFRS 17 for the first time, resulting in significant changes in accounting treatment for insurance and reinsurance contracts[96]. - The group has not adopted any new standards or interpretations that have not yet come into effect during the reporting period[95]. Risk Management - The group manages liquidity risk by setting a minimum liquidity level for claim payments and surrenders[149]. - Interest rate risk is controlled through asset-liability matching techniques[150]. - Currency risk is mitigated using cross-currency swaps and forward contracts[151]. - The group faces equity price risk from financial assets measured at fair value through profit or loss[152].

Financial Performance - The Group's revenue for the year amounted to HK$9,461 million, representing an increase of 11% compared to HK$8,521 million in 2021[9]. - Premiums and fee income contributed HK$9,428 million, an increase of 11% from HK$8,479 million in the previous year[9]. - The adjusted operating profit was approximately HK$934 million, reflecting a 14% increase from HK$818 million in 2021[9]. - The consolidated loss for the year was HK$111 million, compared to a profit of HK$793 million in 2021[9]. - The net loss attributable to equity shareholders was HK$256 million, a decline from a profit of HK$513 million in the prior year[9]. - The decrease in net profit was primarily due to investment losses resulting from adverse market conditions[9]. - Total income from premiums and fee income increased by 11% to HK$9,428 million in 2022 from HK$8,479 million in 2021[12]. - The total operating profit for the year was HK$934 million, an increase of 14% from HK$818 million in 2021[19]. - Total premium and fee income for 2022 was HK$11,446 million, an increase from HK$11,147 million in 2021, representing a growth of 2.7%[32]. - Premium and fee income recognized in the income statements under HKFRS was HK$9,430 million, up from HK$8,480 million in 2021, reflecting a growth of 11.2%[32]. - Operating profit grew by 6% to HK$1,054 million in 2022, while profit after taxation declined by 22% to HK$705 million[52]. - The net investment and other income decreased by 38% to HK$3,128 million in 2022 from HK$5,018 million in 2021[47]. - The net policyholders benefit decreased by 48% to HK$1,306 million in 2022 from HK$2,506 million in 2021[47]. - The change in future policyholder benefits increased by 8% to HK$5,846 million in 2022 from HK$5,409 million in 2021[47]. Revenue Sources and Business Strategy - The Group's sources of revenue include life insurance premium income and various financial services such as management fees and brokerage commissions[9]. - The Group actively pursued opportunities to broaden revenue streams and enhance shareholder value during the recovery phase[8]. - The Group aims for sustainable development and breakthroughs in its business amidst the current market conditions[8]. - The insurance division maintained a diversified product suite, including four flagship products aimed at various customer needs[24]. - The insurance division plans to expand its brokerage and agency intermediary distribution channels to reach more sophisticated customers[26]. - The company aims to establish new partnerships with banks and financial institutions for its bancassurance distribution channel[26]. - The insurance division is exploring a re-formulation of its overall strategy for online sales channels[26]. - The company plans to expand its brokerage distribution channel to cater to high-end customers who prefer independent advice[28]. - The bancassurance distribution channel aims to establish new partnerships with banks and financial institutions to enhance market penetration[29]. - The company is focused on developing innovative products and enhancing the "product + service" concept to provide comprehensive solutions for customers[29]. - Technology empowerment is a core concept, with plans to improve information capabilities and leverage digital platforms for operational efficiency[29]. Assets and Liabilities - Total assets rose by 4% to HK$102,870 million as of December 31, 2022, up from HK$98,474 million in 2021[13]. - Total equity decreased by 26% to HK$14,794 million in 2022 from HK$19,891 million in 2021, primarily due to fair value changes and impairment losses on investment assets[21]. - Total liabilities increased to HK$88.863 billion in 2022 from HK$73.339 billion in 2021, representing a growth of about 21.3%[58]. - The total available capital as of December 31, 2022, was HK$6.603 billion, down from HK$7.293 billion in 2021[70]. Risk Management - The Group actively identified and managed key risks, including strategic, insurance, market, credit, foreign exchange, and operational risks[79][80][85][87]. - The insurance risk management includes pre-launch reviews of new products to mitigate product design risk and regular studies of persistency experience to manage lapse risk[81][89]. - The Group is committed to enhancing its integration with financial technology to create value for all customers, while managing the associated risks[80][85]. Corporate Governance - The Company has adopted and complied with the applicable code provisions of the Corporate Governance Code during the year[170]. - The Board comprises a balance of skills, experience, and diversity appropriate to the Group's business requirements[175]. - The Company maintains at least one-third of the Board members as independent non-executive Directors, ensuring independent judgment in decision-making[175]. - All independent non-executive Directors have confirmed their independence in accordance with the Listing Rules for the year ended December 31, 2022[176]. - The Board meets regularly, holding at least 4 meetings per year, with a total of 4 Board meetings and 1 general meeting held during the year[180]. - The Company has adopted a Board Diversity Policy in 2022 to enhance the effectiveness of the Board and support corporate strategies[187]. - All Directors received training on corporate governance and regulatory development during the year[186]. - The Company ensures that one-third of the Directors retire by rotation at least once every three years, as per its articles of association[179]. - The roles of the Chairman and CEO are distinct, with the Chairman focusing on Board leadership and the CEO managing day-to-day operations[178]. - The Company emphasizes the importance of Board diversity, considering factors such as professional qualifications, gender, and cultural background[188]. Leadership and Management - Mr. Huang Xin was appointed as interim CEO in September 2022, previously serving as executive director since November 2015[150]. - Mr. Huang has extensive experience in finance, having worked at General Electric from 1997 to 2005 and held various leadership roles in investment firms[150]. - The company has a significant focus on strategic management in the insurance sector, with key personnel having backgrounds in actuarial science and financial consulting[160]. - The leadership team has a diverse educational background, with degrees from prestigious institutions such as Fudan University and the Wharton School of Business[156]. - The company is positioned for future growth through strategic investments and market expansion initiatives led by experienced executives[157]. Employee and Operational Metrics - As of December 31, 2022, the Group employed 603 full-time employees, a decrease of 25.9% from 814 in 2021, with 522 in Hong Kong, 39 in Macao, and 42 in the People's Republic of China[100]. - The tied agency force consisted of approximately 3,204 agents as of December 31, 2022, down from 3,462 in 2021[25]. - The number of tied agents in Hong Kong decreased to 2,250 from 2,423 in 2021, a reduction of about 7.1%[66]. - The number of MDRT qualifiers decreased to 275 in 2022 from 324 in 2021, a decline of approximately 15.1%[66]. Embedded Value and Financial Metrics - YF Life's Embedded Value (EV) as of December 31, 2022, is a key metric reflecting the value of shareholders' interests in the earnings from in-force business[114]. - The Adjusted Net Worth (ANW) represents the net asset value on a Hong Kong statutory basis, with marked-to-market adjustments to certain assets of the insurance business segment[115]. - The Value of In-force Business (VIF) before Cost of Capital (CoC) is the present value of future estimated after-tax statutory profits from in-force business, discounted at the risk discount rate as of December 31, 2022[115]. - The New Business Value before cost of capital for the past 12 months is HK$893 million, with a cost of capital of HK$135 million, resulting in a New Business Value after cost of capital of HK$758 million[126]. - The expected return on Embedded Value for 2022 is HK$1,565 million, compared to HK$1,360 million in 2021, indicating a growth of 15.1%[128].

Financial Performance - The total revenue for the year ended December 31, 2022, was HKD 9.461 billion, an increase of 11% from HKD 8.521 billion in 2021[4]. - The insurance premium and fee income amounted to HKD 9.428 billion, up 11% from HKD 8.479 billion in the previous year[5]. - The adjusted operating profit was approximately HKD 934 million, a 14% increase from HKD 818 million in 2021[7]. - The consolidated loss for the year was HKD 1.11 billion, compared to a profit of HKD 793 million in 2021[4]. - The net loss attributable to equity shareholders was HKD 256 million, down from a profit of HKD 513 million in the previous year[5]. - Total assets as of December 31, 2022, were HKD 102.87 billion, a 4% increase from HKD 98.47 billion in 2021[6]. - Total equity decreased by 26% to HKD 14.794 billion from HKD 19.891 billion in the previous year[6]. - The operating profit from the insurance segment was HKD 1.054 billion, a 6% increase from HKD 993 million in 2021[7]. - The loss from other financial services and corporate segments was HKD 120 million, a 31% improvement from a loss of HKD 175 million in the previous year[7]. - The basic loss per share for the year was HKD 0.07, compared to earnings of HKD 0.13 per share in 2021[5]. - The total premium and fee income for the insurance business amounted to HKD 11.446 billion in 2022, compared to HKD 11.147 billion in 2021, reflecting a growth of approximately 2.7%[14]. - The recognized premium and fee income based on Hong Kong Financial Reporting Standards was HKD 9.430 billion in 2022, up from HKD 8.480 billion in 2021, indicating an increase of about 11.2%[14]. - The total premium and fee income from Hong Kong was HKD 6.978 billion (61% of total), while Macau contributed HKD 4.468 billion (39%) in 2022[16]. - The total assets of the insurance segment amounted to HKD 100.93 billion, up from HKD 89.17 billion in the previous year[28]. - The total liabilities of the insurance segment increased to HKD 88.86 billion, compared to HKD 73.34 billion in the previous year[28]. - The net policyholder benefits decreased by 48% to HKD 1.306 billion from HKD 2.506 billion[23]. - Investment and other income net amount decreased by 38% to HKD 3.128 billion from HKD 5.018 billion[23]. - Total available capital decreased to HKD 6,603 million in 2022 from HKD 7,293 million in 2021, a decline of 9.5%[36]. - The solvency ratio dropped to 247% in 2022 from 281% in 2021, a decrease of 34%[36]. - Interest income and other investment income increased to HKD 2,360 million in 2022 from HKD 2,157 million in 2021, a growth of 9.4%[32]. - Operating profit grew by 6% to HKD 1.054 billion, while net profit decreased by 22% to HKD 705 million[26][27]. Insurance Business Overview - The insurance division had approximately 3,204 exclusive agents in Hong Kong and Macau as of December 31, 2022, down from 3,462 in the previous year[11]. - The number of effective individual policyholders increased to over 529,000 in 2022, compared to 523,000 in 2021[11]. - The group plans to continue developing exclusive agency, brokerage, and bank insurance distribution channels to increase market penetration and expand the potential customer base[12]. - The insurance division aims to enhance its product and service offerings by developing innovative products to meet changing customer needs and improve operational efficiency through technology[12]. - The exclusive agency channel remains the most significant distribution channel for premium and fee income, and the group intends to steadily develop this channel[12]. - The group is exploring new partnerships with banks and financial institutions to expand its bank insurance distribution channel[12]. - The embedded value of the insurance business as of December 31, 2022, is HKD 205.87 billion, an increase of 14% from HKD 180.61 billion as of December 31, 2021[19]. - The new business value for the year ended December 31, 2022, is HKD 893 million before capital costs, compared to HKD 851 million for the previous year, reflecting a growth of 4.9%[58]. - The capital costs deducted from new business value were HKD 135 million in 2022, down from HKD 171 million in 2021, showing a reduction of 21.1%[58]. - The risk discount rate used for calculations is set at 8.75% for both December 31, 2022, and December 31, 2021[60]. - The expected return on embedded value for 2022 is HKD 1,565 million, compared to HKD 1,360 million in 2021, marking an increase of 15.1%[59]. - The company has a 69.8% ownership stake in the insurance business segment, which affects the reported embedded value and new business value[56]. Corporate Governance and Management - The company reported its annual performance for the year ending December 31, 2022, with a focus on maintaining high standards of corporate governance[76]. - The board of directors consists of a diverse group with appropriate skills and experience, ensuring independent judgment and consideration of shareholder interests[79]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance with the standard code throughout the year[77]. - The board is committed to continuous review and enhancement of risk management and internal control systems to align with the company's mission and values[76]. - The company has maintained at least three independent non-executive directors, ensuring compliance with listing rules regarding independence[79]. - The board emphasizes the importance of corporate culture in achieving the company's mission and enhancing overall shareholder value[76]. - The company has a structured approach to communication with shareholders, ensuring their interests are recognized[78]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[79]. - The company is focused on attracting and retaining talented management through effective governance frameworks[76]. - The board has established policies and strategies to oversee the group's business operations and achieve business objectives[78]. - The company held a total of 4 board meetings and 1 annual general meeting during the year ended December 31, 2022[80]. - The remuneration committee conducted 1 meeting to review the compensation of directors and senior management, with 2 individuals earning between HKD 0 to 5,000,000 and 1 individual earning between HKD 5,000,001 to 10,000,000[89]. - The board has adopted an updated diversity policy in 2022 to enhance operational efficiency and attract talent[84]. - The board believes its current composition is diverse and meets the standards of the diversity policy, with no measurable targets set for its implementation[86]. - The company has established three committees: nomination committee, remuneration committee, and audit committee, each with clear terms of reference[87]. - The company emphasizes the importance of a balanced structure and appropriate levels of skills, experience, and perspectives in its board composition[84]. - The chairman and the CEO roles are complementary, ensuring clear division of responsibilities[80]. - The company has provided ongoing professional training to all directors regarding corporate governance and regulatory developments[83]. - The remuneration committee has adopted a remuneration policy for independent non-executive directors, non-executive directors, and executive directors to reflect sound governance practices[88]. - The board regularly reviews its diversity policy to ensure compliance and effectiveness[86]. - The audit fees for the year ending December 31, 2022, totaled HKD 13,647,000, an increase from HKD 12,196,000 in 2021, representing a growth of approximately 11.9%[93]. - The audit committee held 2 meetings during the year to review the group's financial reporting and internal controls[91]. - The company emphasizes a zero-tolerance policy towards bribery, extortion, fraud, and money laundering, ensuring a high standard of ethical conduct[92]. - The board is responsible for assessing the nature and extent of risks undertaken to achieve the group's strategic objectives, maintaining a robust risk management and internal control system[95]. - The company has adopted a nomination policy to ensure diversity in the board's composition, considering factors such as gender, age, and professional experience[90]. - The company recognizes the importance of effective risk management while pursuing business growth, aiming for a balance between risk and growth[94]. Risk Management - The company has established a risk management department to address operational risks and ensure corrective measures are implemented[116]. - The company has conducted emergency drills for various business lines to mitigate potential operational risks[116]. - The internal audit function focused on operational risks and conducted audits on various business functions throughout the year[97]. - The company has established a process for disclosing inside information, ensuring timely and accurate communication of significant news[99]. - The company has adopted an updated shareholder communication policy to provide clear and comprehensive information regarding its performance[104]. - The company has not fixed a dividend payout ratio, with dividends subject to board approval based on performance, working capital, and other relevant factors[104]. - The company closely monitors regulatory developments in the financial markets, which can impact its operations and requires appropriate licenses and approvals[109]. - Insurance risk is managed through pricing assumptions based on mortality, morbidity, and other factors, with reinsurance utilized to mitigate underwriting risks[110]. - Market risk is monitored daily, assessing the impact of price fluctuations and significant news on the company's exposure[111]. - Currency risk is primarily associated with non-USD policies, but the company employs cross-currency swaps and forward contracts to mitigate this risk[112]. - Interest rate risk is controlled through asset-liability matching techniques, ensuring the duration of assets aligns with liabilities to minimize volatility in solvency ratios[113]. - Credit risk is managed by diversifying the investment portfolio and utilizing credit default swaps, with no breaches of market concentration limits reported in 2022[114]. - The company has implemented monitoring for cybersecurity risks, with stable and controllable incident reports in 2022, enhancing network behavior oversight[115]. - The company has established a clear reporting mechanism for anti-money laundering and terrorist financing, ensuring compliance with applicable laws and regulations[187]. - The company actively monitors the market reputation and business practices of existing counterparties to mitigate risks[188]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report indicates that the company has identified significant environmental, social, and governance issues through a materiality assessment, reflecting stakeholder opinions[155]. - The company emphasizes the quantification of key performance indicators (KPIs) to evaluate the effectiveness of its ESG policies and strategies[155]. - The report covers the company's operations in Hong Kong, Macau, and mainland China, including 15 offices in Hong Kong and five branches in Macau[157]. - The board of directors is responsible for overseeing risk management and internal control systems related to ESG matters, ensuring alignment with strategic goals[159]. - The company engages with stakeholders through various communication channels to understand their expectations and concerns regarding ESG practices[161]. - The company aims to create sustainable returns for shareholders by integrating sustainability factors into its governance framework and investments[154]. - The ESG report is prepared in accordance with the guidelines set forth by the Hong Kong Stock Exchange, ensuring transparency and balance in data disclosure[154]. - The company emphasizes a zero-tolerance policy towards child labor and forced labor, complying with all applicable laws and regulations[168]. - The company has implemented a comprehensive benefits package, including stock options and retirement benefits, to attract and retain talent[166]. - The workforce diversity policy aims to ensure equal employment opportunities and prevent discrimination based on gender, age, or other personal circumstances[167]. - The company has a strong commitment to maintaining a fair and respectful workplace, guided by its human resources practices[165]. - The company regularly engages with stakeholders to identify environmental, social, and governance risks and opportunities[164]. - The company has not reported any significant violations of human rights-related laws during the reporting period[168]. - The company is focused on creating a diverse and inclusive work environment to enhance its operational effectiveness[166]. - The company has implemented energy-efficient practices, including the use of LED lighting during office renovations[190]. - The company has not reported any significant violations regarding environmental emissions during the reporting period[192]. - The company is considering integrating environmental, social, and governance factors into its investment strategies and financial service decisions[194]. Community Engagement and Social Responsibility - The company provided a total of HKD 1.2 million in various COVID-19 related benefits, including hospitalization cash allowances and testing support[198]. - The company distributed 4,000 anti-epidemic care packages to support the community during the pandemic[198]. - The company donated HKD 3 million to the Hong Kong Arts Festival Foundation to promote local arts and culture[199]. - The "Astronaut Training Program" for children will be relaunched next year after a three-year suspension due to the pandemic[197].