Financial Performance - The Group's revenue for the first half of 2022 amounted to HK$4,698 million, representing a 32% increase compared to HK$3,571 million for the prior period[12]. - Premiums and fee income contributed HK$4,679 million, also a 32% increase from HK$3,549 million in the prior period[12]. - The adjusted operating profit was approximately HK$445 million, reflecting a 4% increase from HK$427 million for the prior period[12]. - The Group reported a consolidated loss of HK$89 million, compared to a profit of HK$635 million for the prior period[12]. - The net loss attributable to equity shareholders was HK$199 million, a decline from a profit of HK$460 million in the prior period[12]. - The loss was primarily due to adverse market conditions affecting the fair value of the Group's proprietary investments[12]. - The financial performance was impacted by external factors including COVID-19, the Russian-Ukrainian conflict, and inflation[11]. - The profit before taxation for the period is HK$399 million, down 28% from HK$556 million in the previous year[58]. - The company reported a profit for the period of HK$378 million, a decrease of 29% from HK$534 million in the previous year[62]. - Total comprehensive income for the period was HK$(4,337,721,000), a significant decrease from HK$604,747,000 in the previous year[158]. Business Operations - YF Life Insurance International Limited maintained positive growth in total premium income and operating profit for the first half of the year[12]. - The Group is actively pursuing suitable business opportunities to broaden revenue streams under current market conditions[11]. - The insurance division aims to optimize its product mix by developing higher-margin products, such as refundable critical illness products[34]. - The geographical breakdown of TPI shows that Hong Kong contributed HK$3,279 million (58%) and Macao contributed HK$2,416 million (42%) in the first half of 2022[43]. - The tied agency channel generated HK$2,860 million in total premium and fee income, while brokers and non-tied agencies contributed HK$616 million[44]. - The bancassurance distribution channel is being strengthened through enhanced partnerships with existing banks and financial institutions[33]. - The insurance division is actively developing virtual face-to-face solicitation tools to improve digital platform capabilities[34]. - The insurance division is exploring a reformulation of its overall strategy for online sales channels[33]. Assets and Liabilities - Total assets increased by 2% to HK$100.762 billion from HK$98.474 billion as of December 31, 2021[17]. - Total equity decreased by 22% to HK$15.553 billion from HK$19.891 billion at the end of 2021[17]. - Total liabilities rose to HK$84,758 million as of June 30, 2022, compared to HK$73,339 million as of December 31, 2021[67]. - The company's net assets decreased to HK$15,553,134,000 from HK$19,890,855,000, highlighting a decline in equity[162]. - Cash and cash equivalents were reported at HK$3,127,262,000, down from HK$4,024,475,000, indicating a reduction in liquidity[161]. Investment and Income - The net investment and other income decreased significantly by 59% to HK$1,010 million from HK$2,494 million in the prior year[58]. - The investment income for the six months ended June 30, 2022, was HK$1,143 million, up from HK$1,065 million in the previous year[72]. - The newly launched short-term endowment product contributed to the increase in premiums and fee income, driving growth in the inforce portfolio[59]. - The company reported net investment loss of HK$1,102,874 for the period, compared to a net investment income of HK$2,179,688 in 2021[153]. Shareholder Information - The Group aims to enhance shareholder value despite the challenges faced in the financial markets[11]. - The chairman, Mr. Yu Feng, holds 1,827,641,279 shares, representing 47.25% of the company's total shareholding[121]. - The board did not declare an interim dividend for the six months ended June 30, 2022, consistent with the previous year[101]. - The Group's Embedded Value calculations are based on certain assumptions regarding future experience, which may lead to significant variances from actual results[113]. Risk Management - The Group manages insurance risks through prudent pricing guidelines, reinsurance, and underwriting management, aiming for a balanced portfolio to reduce variability of outcomes[186]. - The Group is exposed to credit risk from various sources, including amounts due from issuers of debt securities, bank balances, and insurance receivables[195]. - Financial risks include exposure to credit, liquidity, interest rate, and currency risks, which are managed through established financial management policies[190]. - The Group manages liquidity risk by setting a minimum level of liquidity cash available to cover claims maturities and surrenders[200]. - Interest rate risk is controlled through asset and liability matching techniques to mitigate fluctuations in the value of investments and amounts due to policyholders[200].

Financial Performance - The Group's revenue for 2021 amounted to HK$8,521 million, representing a 10% increase from HK$7,763 million in 2020[33]. - Premiums and fee income reached HK$8,479 million, a 10% increase compared to HK$7,723 million in 2020[33]. - The adjusted operating profit was approximately HK$818 million, reflecting a 1% increase from HK$813 million in 2020[33]. - Consolidated profit for the Group was HK$793 million, a decrease of 16% from HK$949 million in 2020[33]. - Net profit attributable to equity shareholders was HK$513 million, down 17% from HK$618 million in 2020, primarily due to fair value changes of derivative instruments[33]. - Total assets increased by 12% to HK$98,474 million from HK$87,553 million in 2020[37]. - The Group's total equity rose by 3% to HK$19,891 million compared to HK$19,342 million in 2020[37]. - YF Life segment operating profit increased by 3% to HK$993 million in 2021 from HK$962 million in 2020[39]. - Total operating profit rose by 1% to HK$818 million in 2021 compared to HK$813 million in 2020[39]. - Profit for the year decreased by 17% to HK$792 million in 2021 from HK$949 million in 2020[39]. - Net profit attributable to owners fell by 17% to HK$513 million in 2021 from HK$618 million in 2020[39]. Business Growth and Strategy - YF Life Insurance reported significant increases in the number of in-force individual policies, premium revenue, and net operating income compared to the previous year, demonstrating strong business performance[17]. - The company restructured its securities business, establishing a management committee and two divisions: Brokerage Division focusing on 2C businesses and Investment Banking Division focusing on 2B businesses[16]. - The exclusive agency channel building efforts began to yield results, particularly with the Macao-based broker channel model achieving impressive outcomes[17]. - The company aims to explore and deliver business synergies between its various financial units, including Yunfeng Securities, Yunfeng Capital, and YF Life Insurance[16]. - The Group plans to explore suitable development opportunities and expand its business scope to enhance competitiveness in the region[28]. - The company plans to expand its brokerage and agency intermediary distribution channels to reach more sophisticated customers[50]. - Future strategies include optimizing the product mix and enhancing digital platform capabilities to align with customer preferences[51]. - The insurance division aims to establish new partnerships with banks and financial institutions for bancassurance distribution[50]. Technology and Innovation - The company implemented robotic process automation (RPA), anti-money laundering (AML), and office automation (OA) systems to enhance operational efficiency[17]. - The Smart mobile business development toolkit was upgraded to support online business operations, integrating a customer self-service portal to improve digital service support[17]. - The strategic blueprint emphasizes innovation and technology to improve product and service competitiveness across all business lines[19]. - The group is focused on enhancing business processes and integrating financial technology to create value for customers[126]. Investment and Financial Position - Total premium and fee income (TPI) for the year ended December 31, 2021, was HK$11,147 million, an increase of 7.9% from HK$10,329 million in 2020[57]. - The embedded value of the insurance business as of December 31, 2021, was HK$18,061 million, representing a 15% increase from HK$15,736 million in 2020[76]. - Adjusted Net Worth (ANW) increased by 19% to HK$5,610 million in 2021 from HK$4,724 million in 2020[78]. - The value of in-force (VIF) business after cost of capital (CoC) rose by 13% to HK$12,451 million in 2021 from HK$11,012 million in 2020[78]. - The net asset value (ANW) increased to HK$15,834 million in 2021 from HK$14,757 million in 2020, representing a growth of 7.3%[93]. - The total liabilities increased to HK$73,339 million in 2021 from HK$62,078 million in 2020, representing an increase of 18.1%[93]. - The solvency ratio as of December 31, 2021, was 281%, down 7% from 288% in 2020[108]. - The group had fixed bank deposits and cash equivalents totaling HK$5,085 million as of December 31, 2021, compared to HK$4,293 million in 2020[119]. - The group reported security deposits of HK$9.9 million for banking facilities, up from HK$150,000 in 2020[142]. - The group's investments pledged as collateral amounted to HK$13.38 billion, an increase from HK$7.54 billion in 2020[142]. Human Resources and Employee Development - The group employed 814 full-time employees as of December 31, 2021, an increase from 708 in 2020[146]. - The number of MDRT qualifiers increased to 324 in 2021, up from 235 in 2020[103]. - The number of tied agents in Hong Kong increased to 2,423 in 2021, up from 2,373 in 2020[103]. - The group has adopted share option and share award schemes to incentivize employees, maintaining remuneration at market levels[147]. Risk Management - The group has implemented a comprehensive risk management framework to address strategic, insurance, market, credit, foreign exchange, and operational risks[125][126][135][138].

Financial Performance - The Group's revenue for the first half of 2021 amounted to HK$3,571.3 million, representing a 25% increase compared to HK$2,865.7 million for the prior period[13]. - Premiums and fee income contributed HK$3,548.8 million, an increase of 24% from HK$2,852.2 million in the prior period[13]. - The adjusted operating profit was approximately HK$431.8 million, reflecting a 10% increase from HK$392.6 million for the prior period[13]. - Consolidated profit reached HK$635.1 million, a significant increase of 142% compared to HK$262.2 million for the prior period[13]. - Net profit attributable to equity shareholders was HK$459.5 million, representing a 321% increase from HK$109.2 million for the prior period[13]. - The substantial growth in results was primarily driven by the satisfactory performance of YF Life Insurance International Limited and significant growth in investment returns[13]. - The Group's performance reflects the positive impact of the COVID-19 recovery measures and the role of Hong Kong as a leading global asset management center[12]. - The Group's business growth is supported by the ongoing recovery in major markets, including China[12]. Insurance Segment - The insurance business division maintained a tied agency force of approximately 3,481 agents, an increase from 3,409 agents at the end of 2020[30]. - The company has over 513,000 in-force individual policies as of June 30, 2021, up from 506,000 at the end of 2020[30]. - The insurance division aims to optimize its product mix by developing higher-margin products, such as refundable critical illness products[32]. - The insurance division plans to strengthen partnerships with existing banks and financial institutions to enhance its bancassurance distribution channel[33]. - The embedded value of the insurance business as of June 30, 2021, is HK$16,937 million, an increase of 8% from HK$15,736 million as of December 31, 2020[47]. - The new business value for the six months ended June 30, 2021, is HK$291 million, up from HK$218 million in the same period last year, representing a growth of approximately 33%[49]. - The annual premium equivalent (APE) for the same period is HK$1,058 million, an increase of HK$247 million or approximately 30% compared to HK$811 million in the previous year[49]. - Net premium and fee income for the insurance segment is HK$2,619 million, reflecting a 17% increase from HK$2,235 million in the prior period[54]. Investment and Financial Position - Total assets increased by 6% to HK$93.211 billion as of June 30, 2021, compared to HK$87.553 billion at the end of 2020[18]. - The adjusted net worth (ANW) increased to HK$5,866 million, a 24% rise from HK$4,724 million[48]. - The value of in-force (VIF) business after cost of capital is HK$11,071 million, showing a slight increase of 1% from HK$11,012 million[48]. - The net investment and other income increased by 27% to HK$2,443 million from HK$1,931 million[54]. - The Group's bank borrowing outstanding was HK$1.378 billion as of June 30, 2021, down from HK$1.554 billion as of December 31, 2020[85]. - The Group's investments and fixed bank deposits pledged as security amounted to HK$10.841 billion and HK$509.648 million, respectively[89]. - The Group's gearing ratio improved to 13.15% as of June 30, 2021, compared to 14.18% as of December 31, 2020[85]. Risk Management - The Group manages insurance risks through prudent pricing guidelines, reinsurance, and underwriting management[173]. - The underwriting strategy seeks diversity to ensure a balanced portfolio, reducing variability of outcomes[173]. - Financial risks include exposure to credit, liquidity, interest rate, and currency risks arising in the normal course of business[178]. - The Group's financial management policies limit risks associated with equity price fluctuations from investments in other entities[178]. - The Group has established a Reinsurance Committee to supervise and review reinsurance activities and monitor the financial stability of reinsurers[177]. - The Group's risk management policies are designed to mitigate both insurance and financial risks[169]. Corporate Governance - The Company has complied with the applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2021, with one noted deviation[127]. - The audit committee is chaired by Mr. Chu Chung Yue, Howard, and includes members Mr. Qi Daqing and Mr. Xiao Feng, with terms of reference aligned with the CG Code[132]. - The Company has adopted a code of conduct for director's securities transactions that meets or exceeds the required standards set out in the Model Code[132]. - The Company has not identified any significant matters that would affect the preparation of the interim financial statements[140]. Employee and Operational Metrics - The number of employees increased to 530 (503 in Hong Kong and 27 in Macau) as of June 30, 2021, from 510 (486 in Hong Kong and 24 in Macau) at the end of 2020[70]. - As of June 30, 2021, the Group employed 738 full-time employees, an increase from 708 as of December 31, 2020[94]. - The total transaction volume of the brokerage business reached HK$14.9723 billion, a 68% increase compared to HK$8.9268 billion in the same period last year[75].