Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 584.5 million, a decrease of 54.4% from HKD 1,281.6 million in 2021[2] - The company reported a loss attributable to shareholders of HKD 544.3 million, compared to a profit of HKD 457.8 million in 2021, representing a decline of 218.9%[2] - Basic and diluted loss per share was HKD 29.6, a decrease of 219.8% from HKD 24.7 in the prior year[2] - The total comprehensive loss attributable to shareholders for the year was HKD 585.3 million, compared to a profit of HKD 470.6 million in 2021[3] - The total expenses for the year were HKD 477.3 million, a reduction from HKD 520.7 million in the previous year[3] - The operating loss for 2022 was HKD 68.6 million, and the net loss for the year amounted to HKD 544.3 million, driven by an investment loss of HKD 317.7 million[32] - Total management fees amounted to HKD 549.3 million, down 40.7% from HKD 926.7 million in the previous year[2] - Performance fees dropped significantly by 99.6% to HKD 0.9 million in 2022, compared to HKD 200.5 million in 2021[54] - The management fund's overall performance saw a decline of 23.1% in 2022, with specific funds like the High Dividend Equity Fund and Value Fund dropping by 18.9% and 28.1%, respectively[48] Assets and Liabilities - Non-current assets decreased to HKD 1,733.1 million from HKD 1,883.5 million in the previous year[4] - The company's net asset value was HKD 4,494.2 million, down from HKD 5,264.8 million in 2021[4] - The group's net asset value as of December 31, 2022, was HKD 4.5 billion, including cash of HKD 1.7 billion and investments of HKD 2.7 billion[32] - The cash balance at the end of 2022 was HKD 1.6665 billion, with no corporate bank borrowings other than HKD 76.1 million secured against real estate assets[69] - The current ratio improved to 8.7 times in 2022, up from 6.9 times in 2021[69] - The group held 12,621,960 units of a gold ETF, representing 27.8% of total assets, with a fair value of HKD 474.9 million, down from HKD 477.7 million the previous year[60] Dividends - The company did not declare an interim dividend for the year[2] - The proposed final dividend for 2022 is HKD 62,108,000, down from HKD 147,999,000 in 2021[14] - The final dividend per share was HKD 3.4 in 2022, a decrease of 57.5% from HKD 8.0 in 2021[54] - The board recommended a final dividend of HKD 0.034 per share for 2022[68] - The board has proposed a final dividend of HKD 0.034 per share for the year ended December 31, 2022, subject to shareholder approval at the annual general meeting[73] Investments - Net loss from investments was HKD 441,103,000 in 2022, compared to a net gain of HKD 111,036,000 in 2021[9] - The fair value of investment properties increased to HKD 197,608,000 in 2022 from HKD 190,572,000 in 2021[15] - The amount of investments in joint ventures rose to HKD 545,758,000 in 2022, up from HKD 424,039,000 in 2021[16] - The group recognized a net investment income of HKD 239.8 million from a loan note, with an unrealized net investment loss of HKD 291.3 million, compared to an unrealized net investment income of HKD 214.1 million in the previous year[63] Market Conditions - China's GDP growth target for 2022 was 5.5%, but the actual growth recorded was only 3%, the lowest since 1976[27] - The flagship fund, Value Fund, experienced a decline of 28% in 2022, while the Hang Seng Index and MSCI China Index fell by 13% and 22% respectively[26] - The market began to rebound at the end of October 2022, with expectations of significant recovery following the easing of pandemic restrictions[28] - The estimated growth rate for China in 2023 is projected at 5.2%, while the growth rates for the US and Europe are only 1.4% and 0.7% respectively[28] Employee and Corporate Governance - The company employs 202 staff members, with 145 based in Hong Kong and 42 in mainland China[30] - Total fixed salary and employee benefits increased by 3.9% to HKD 254.4 million in 2022, compared to HKD 244.8 million in 2021[65] - The total bonus for 2022 was HKD 51.8 million, down from HKD 108.1 million in 2021[65] - The company emphasizes maintaining high standards of corporate governance and has complied with the corporate governance code[80] - All directors confirmed adherence to the standard code of conduct as of December 31, 2022[81] Strategic Initiatives - The wealth management division is a key growth strategy, with Asia's total wealth management assets expected to grow from $10 trillion in 2019 to between $15 trillion and $19 trillion by 2025[35] - The company continues to expand its business in mainland China, focusing on institutional clients and private fund management, with plans to obtain a public fund management license[38] - The company is preparing to launch alternative investment products targeting listed and private companies in mainland China and Hong Kong, aiming to assist businesses in expanding in the Greater Bay Area[41] - The company has established solid channels for family office business, particularly in Hong Kong and Singapore, where the number of family offices is increasing[35] ESG and Innovation - The company received approval from the Hong Kong Securities and Futures Commission to launch an Asia Food and Nutrition Fund, strengthening its ESG capabilities[42] - The company has conducted 100% ESG assessments on all listed companies holding equity and fixed-income securities, marking a significant milestone in its ESG research development[43] - The company has been recognized as the Outstanding Company in ESG for the year 2021/2022 by the Environment, Social, and Governance Achievement Awards[45] - The company aims to enhance its service capabilities and introduce innovative investment solutions to meet the evolving needs of investors in Hong Kong and globally[46]

Financial Performance - Total revenue for the first half of 2022 was HK$331.9 million, a decline of 53.1% compared to HK$707.8 million in the same period of 2021[8]. - Management fees dropped by 38.8% to HK$307.3 million from HK$501.9 million year-on-year[8]. - Performance fees plummeted by 99.0% to HK$0.9 million, down from HK$91.3 million in the previous year[8]. - The company reported an operating loss of HK$44.9 million for the first half of 2022, compared to a profit of HK$193.4 million in the same period of 2021, marking a 123.2% decline[8]. - The loss attributable to shareholders was HK$428.6 million, a significant drop of 304.3% from a profit of HK$209.8 million in the previous year[8]. - Basic and diluted loss per share was HK$23.2, compared to earnings of HK$11.3 per share in the same period last year, reflecting a decrease of 305.3% and 307.1% respectively[8]. - For the six months ended June 30, 2022, the net revenue was HKD 219.45 million, a decrease of 50.7% from HKD 444.26 million in the same period of 2021[45]. - The company reported a net loss attributable to owners for the six months ended June 30, 2022, was HKD 428,588,000, compared to a profit of HKD 209,818,000 in the same period of 2021[68]. Asset Management - Total assets under management decreased by 25.4% to $7.49 billion as of June 30, 2022, down from $10.04 billion at the end of 2021[7]. - The company's asset management scale in mainland China was $630 million, accounting for approximately 8.4% of the total asset management scale as of June 30, 2022[15]. - The average managed assets for the first half of 2022 were HK$11.492 billion, reflecting a decrease from HK$11.489 billion in the previous half[23]. - Institutional clients accounted for 59% of total managed assets, a slight decrease from 60% as of December 31, 2021, while retail investors represented 41%[26]. - The proportion of managed assets from European clients increased to 14% from 12% year-on-year, while Hong Kong clients remained the largest group at 62%[26]. Market Environment - The MSCI China Index fell by 11.3% and the MSCI All Country Asia (ex-Japan) Index declined by 16.3% during the first half of 2022, indicating a challenging market environment[10]. - The company maintains a cautiously optimistic outlook for the Chinese and Asian markets, supported by China's counter-cyclical growth policies[19]. Cost Management - The company continues to implement strict cost control measures, with fixed operating expenses slightly increasing by 6% to HK$168 million from HK$159 million year-on-year[11]. - The company continues to adopt a cautious approach to cost management while investing in key strategic growth areas to enhance competitive advantages[34]. Product Development and Innovation - The company aims to expand its product offerings and enhance client coverage despite the challenging market conditions[10]. - The company continues to innovate and expand its product offerings, with plans to launch additional strategies covering fixed income, multi-asset, and ESG themes[12]. - A new ESG product is planned for launch in the second half of the year, following the successful introduction of a China-themed strategy in Japan[18]. Business Expansion - The company is exploring new business developments in mainland China, including seeking full or majority control of public fund management licenses[15]. - The company continues to expand its business in Southeast Asia, actively seeking to grow its customer base in this rapidly growing market[16]. - The company has noted an increase in investment interest from sovereign wealth funds in the EMEA region regarding its expertise in Chinese equities[16]. Employee and Management Changes - The company has strengthened its distribution and sales capabilities by appointing new senior management, including a new CEO and regional distribution heads[13]. - The company aims to enhance its client collaboration and coverage through the recruitment of experienced senior management personnel[13]. - The company employed a total of 164 staff in Hong Kong, a decrease from 177 staff a year earlier, while the number of employees in Shanghai increased from 39 to 43[120]. Shareholder and Governance - The company has established an audit committee consisting of three independent non-executive directors to review accounting principles and financial reporting matters[122]. - The company has adopted the corporate governance code principles as outlined in the listing rules and has been compliant as of June 30, 2022[124]. - The company expressed gratitude to shareholders, business partners, distributors, and customers for their support and acknowledged the contributions of its dedicated employees[127].

Financial Performance - Total revenue for the year was HKD 4,105.9 million, a decrease of 50% from HKD 8,205.4 million in the previous year[6]. - Operating profit (excluding other income/losses) was HKD 360.3 million, down 72% from HKD 1,308.5 million in the previous year[7]. - Profit attributable to owners of the company was HKD 457.8 million, a decline of 67% compared to HKD 1,379.5 million in the previous year[7]. - Total assets amounted to HKD 5,670.3 million, a decrease of 10% from HKD 6,298.8 million in the previous year[7]. - Net asset value totaled HKD 5,264.8 million, down 3% from HKD 5,418.0 million in the previous year[7]. - Assets under management were HKD 10,037 million, a decline of 29% from HKD 14,166 million in the previous year[7]. - Basic earnings per share were HKD 0.247, a decrease of 67% from HKD 0.744 in the previous year[7]. - The net profit for the year 2021 reached HKD 457.8 million, with basic earnings per share of HKD 0.247, compared to HKD 1.379 billion in 2020[38]. - The total assets under management decreased from USD 14.2 billion to USD 10 billion by the end of 2021 due to significant redemptions in high-yield bonds[38]. - The company maintained a dividend payout of HKD 0.08 per share despite the challenging market conditions[38]. - The final dividend per share was HKD 8.0, down 69.2% from HKD 26.0 in 2020[62]. - The company’s net profit attributable to shareholders fell by 66.8% to HKD 457.8 million due to reduced performance fees and overall income decline[44]. Awards and Recognition - The company received four significant awards at three renowned annual award events in 2021[8]. - The company received the "Best Fund Institution - Multi-Asset Investment" award at the 2022 Asset Management Awards, highlighting its strong position in the multi-asset investment space[15]. - The company was recognized as the "Best Foreign Sole Proprietorship Award (China)" in the 2021 Best of the Best Awards by Asian Asset Management, showcasing its strong reputation in the market[15]. - The Asia Equity and Bond Income Fund was awarded "Best Fund Institution - Multi-Asset Investment" by Asian Private Banker in 2021[46]. - The company has received over 200 professional awards since its establishment in 1993, highlighting its recognition in the asset management industry[75]. Investment Strategies and Products - The company has maintained its commitment to value investment principles across various asset classes[3]. - The flagship stock product, the Value Fund, has consistently outperformed its peer group funds across different market cycles[26]. - The Asia Bond Fund, established in November 2017, has demonstrated excellent performance with a dynamic asset allocation strategy aimed at capturing growth potential in Asian assets[27]. - The Asia Equity and Bond Income Fund has gained significant market recognition, reflecting the investment team's efforts and performance results since its inception in November 2019[15]. - The company’s flagship Value Fund is one of the products under the mutual recognition scheme between mainland China and Hong Kong, promoting and distributing through mainland agents[15]. - The company’s pharmaceutical industry fund employs a "whole China" investment strategy, flexibly covering Hong Kong stocks, A-shares, and US-listed Chinese stocks since its establishment in April 2015[15]. - The company’s high-yield stock fund has nearly two decades of investment track record, focusing on financially sound companies with strong profit growth and cash flow in the Asian region[26]. - The flagship Value Fund experienced a decline of 6.6% in 2021, while the Hang Seng Index and MSCI China Index fell by 12.3% and 21.7% respectively[38]. - The Asia Equity and Bond Income Fund achieved a full-year increase of 3.3% in 2021, with assets under management growing from $87.3 million at the end of 2020 to $347 million[46]. Market Presence and Expansion - The company operates offices in major financial hubs including Hong Kong, Shanghai, Shenzhen, Kuala Lumpur, Singapore, and London[3]. - The company has established a strong presence in the Chinese market, having set up an office in Shanghai twelve years ago, positioning itself as a leader in Chinese investments[40]. - The company is actively expanding its retail distribution network in mainland China, collaborating with banks and third-party online platforms[49]. - The group launched a new ESG-themed product in Japan, which has gained significant interest from local investors, increasing Japan's share of total assets under management from 3% in 2020 to 6% in 2021[51]. - The Greater Bay Area Cross-Boundary Wealth Management Connect plan allows over 80 million residents to directly invest in Hong Kong wealth management products, providing a competitive advantage for the group[49]. Employee and Corporate Governance - The company has a strong leadership team with senior investment directors having over 24 and 32 years of experience in asset management[78]. - The management team is led by Co-Chairmen and Co-Chief Investment Officers, who have extensive experience in asset management and investment research[75][77]. - The board includes independent non-executive directors with extensive backgrounds in finance and academia, enhancing corporate governance[80][81][82]. - The company emphasizes the importance of maintaining good relationships with employees, customers, and business partners for sustainable development[119]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, with no violations reported during the year[124]. - The company has established a mandatory provident fund scheme for eligible employees, with contributions based on a certain percentage of their basic salary[115]. - The company has established a zero-tolerance policy towards harassment and discrimination in the workplace, promoting a diverse and inclusive environment[198]. - The company emphasizes competitive compensation and benefits to retain talent, aligning long-term interests with performance recognition[194]. ESG Commitment and Initiatives - The company emphasizes its commitment to Environmental, Social, and Governance (ESG) factors in its investment processes, led by a dedicated ESG investment head[85]. - The company has established a dedicated ESG (Environmental, Social, and Governance) investment team consisting of two members, focusing on responsible investment policies and ESG assessments[159]. - The company signed the United Nations Principles for Responsible Investment, formalizing its commitment to responsible investment practices[158]. - The company has integrated ESG analysis into its investment process since 2019, enhancing its risk assessment framework and commitment to sustainable returns[169]. - The company actively engages with investee companies to promote sustainable practices and improve ESG transparency[182]. - The company has implemented a zero-tolerance policy towards corruption and money laundering, ensuring all employees adhere to a code of conduct[187]. - The company plans to enhance its environmental, social, and governance (ESG) strategies, including tracking ESG developments and increasing engagement with investment targets[186]. Risk Management and Compliance - The company has established a risk management framework based on a "three lines of defense" model to coordinate risk management activities[144]. - The board confirmed its responsibility to oversee the group's risk management and internal control systems, reviewing their effectiveness at least annually[142]. - The internal audit conducted a review of the effectiveness of the group's risk management and internal control systems, focusing on financial, operational, and compliance monitoring, with no significant deficiencies found[149]. - The company has established a whistleblowing mechanism to protect employees reporting suspicious misconduct[188]. - The company has implemented various measures to address the COVID-19 pandemic, including forming a response team[158]. Community Engagement and Social Responsibility - The company donated HKD 500,000 to Wuhan's Leishenshan Hospital and supported various charitable activities, contributing over HKD 500,000 to charities in Hong Kong and Malaysia[158]. - The company has been promoting industry talent development through internship programs and sponsorships with local universities and financial organizations[158]. - The company has established a recreational committee to organize social activities, internal events, volunteer services, sports activities, and annual dinners[200].