Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 276.8 million, a decrease of 16.6% compared to HKD 331.9 million in the same period of 2022[2] - Total management fees decreased by 20.0% to HKD 245.9 million from HKD 307.3 million year-on-year[2] - The company reported a profit attributable to shareholders of HKD 4.9 million, a significant recovery from a loss of HKD 428.6 million in the previous year, representing a 101.1% change[2] - Basic earnings per share improved to HKD 0.3 from a loss of HKD 23.2, marking a 101.3% increase[2] - Operating loss (excluding other income/loss) narrowed to HKD 3.0 million from HKD 44.9 million, a reduction of 93.3%[2] - Net income totalled HKD 188.3 million, down from HKD 219.5 million, reflecting a decrease of 14.2%[3] - Total expenses decreased to HKD 191.4 million from HKD 264.3 million, a reduction of 27.6%[3] - The company declared a final dividend of HKD 62,108,000 for the year ended December 31, 2022, compared to HKD 147,999,000 for the previous year[13] - The company did not recommend an interim dividend for the six months ended June 30, 2023, compared to no dividend in the previous year[13] Assets and Liabilities - Non-current assets amounted to HKD 2,752.3 million as of June 30, 2023, compared to HKD 2,712.2 million at the end of 2022[4] - Cash and cash equivalents decreased to HKD 1,521.1 million from HKD 1,666.5 million[4] - The company's total equity stood at HKD 4,434.2 million, slightly down from HKD 4,494.2 million at the end of 2022[4] - The total accounts receivable as of June 30, 2023, was HKD 62,793,000, down from HKD 67,131,000 as of December 31, 2022[20] - The overdue but not impaired accounts receivable aged analysis shows HKD 1,497,000 overdue for more than 90 days as of June 30, 2023, compared to HKD 849,000 as of December 31, 2022[20] - The group recognized a "held for sale investment" of HKD 107,890,000, which includes financial assets at fair value of HKD 106,344,000 and cash equivalents of HKD 1,512,000[18] Investment Performance - Net investment losses amounted to HKD (3,829,000), significantly improved from HKD (379,254,000) in the previous year[8] - The group reported an unrealized loss of HKD 1,500,000 on financial assets at fair value through profit or loss for the period ending June 30, 2023[18] - The fair value of the group's investment in the Gold ETF was HKD 500.2 million as of June 30, 2023, compared to HKD 474.9 million at the end of 2022, reflecting an increase of 5.3%[52] - The group recorded an unrealized net investment gain of HKD 25.3 million from the Gold ETF investment in the first half of 2023, compared to a loss of HKD 2.8 million in the same period of 2022[52] - The group's net loss from investments was HKD 7.8 million in the first half of 2023, a significant improvement from a gain of HKD 239.9 million in the first half of 2022[50] Business Strategy and Expansion - The group plans to acquire a 29.99% stake in PT Surya Timur Alam Raya Asset Management for USD 3.5 million (approximately HKD 27 million) as part of its market expansion strategy[24] - The group completed the purchase of a 50% stake in Cromwell Italy Urban Logistics Fund, with a total investment of EUR 13.1 million (approximately HKD 112 million)[24] - A strategic partnership was established with Aldiracita Group in July to enhance expansion in the Southeast Asian market, particularly in Indonesia[28] - The company is set to launch an Asia logistics real estate private equity fund in the second half of the year to capitalize on increasing logistics demand from manufacturers and retailers[31] Market Outlook and Trends - The company remains optimistic about the long-term prospects in Asia despite short-term uncertainties in the market[25] - The company anticipates increasing demand for Asian asset management driven by long-term growth factors, positioning itself as a leader in the region[35] - The company continues to expand its business in mainland China, focusing on institutional clients and various investment schemes, including QDLP and QFLP[33] - The company remains optimistic about opportunities in the Asian asset and wealth management industry, despite short-term market challenges such as inflation and geopolitical tensions[35] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to ensure compliance with the listing rules[66] - The interim results for the six months ended June 30, 2023, have been reviewed by the external auditor in accordance with Hong Kong review standards[67] - The company is committed to maintaining high standards of corporate governance and has adhered to the relevant rules and regulations as of June 30, 2023[68]

Financial Performance - In 2022, the company's revenue decreased by 54.4% to HKD 584.5 million from HKD 1,281.6 million in 2021[8] - The company reported a loss attributable to shareholders of HKD 544.3 million in 2022, a decline of 218.9% compared to a profit of HKD 457.8 million in 2021[8] - Total assets as of December 31, 2022, were HKD 4,747.9 million, down 16.3% from HKD 5,670.3 million in 2021[8] - The company's total liabilities decreased by 37.4% to HKD 253.7 million in 2022 from HKD 405.5 million in 2021[8] - The net asset value totaled HKD 4,494.2 million in 2022, a decrease of 14.6% from HKD 5,264.8 million in 2021[8] - The basic loss per share for 2022 was HKD (29.6), compared to earnings of HKD 24.7 per share in 2021, marking a decline of 219.8%[8] - The company’s operating loss (excluding other income/loss) was HKD (68.6) million in 2022, a significant drop from a profit of HKD 360.3 million in 2021[8] - In 2022, the company reported a net loss of HKD 544 million, marking its first significant annual loss since its establishment in 1993, primarily due to an investment loss of HKD 317.7 million[32] - The company's operating loss, excluding proprietary investments, was approximately HKD 69 million in 2022, contrasting with a net profit of HKD 458 million in 2021[32] - The company maintained a strong financial position with net assets of approximately HKD 4.5 billion and zero debt, allowing it to navigate the recent losses confidently[32] Investment Performance - The flagship fund, the company's Value Fund, experienced a decline of 28% in 2022, while the Hang Seng Index and MSCI China Index fell by 13% and 22%, respectively[33] - As of January 31, 2023, the Value Fund recorded a significant rebound with a net return of 46% over the preceding three months[33] - The company anticipates potential market recovery in China as COVID-19 restrictions may ease earlier than expected, which could positively impact investment opportunities[11] - The International Monetary Fund forecasts a growth rate of 5.2% for China in 2023, compared to 1.4% for the US and 0.7% for Europe, indicating potential for investment growth in the Chinese market[35] - The overall performance of managed funds saw a decline, with a weighted average return of -23.1% for 2022, including a drop of 18.9% for the High Dividend Stock Fund and 28.1% for the Value Fund[64] Asset Management - Assets under management fell by 38.8% to USD 6,145 million in 2022 from USD 10,037 million in 2021[8] - The asset management scale as of December 31, 2022, was $6.1 billion, a decrease of 39% from $10 billion at the end of 2021[43] - Total management fees for 2022 decreased to HKD 549.3 million, a year-on-year decline of 41%[43] - Despite market volatility and net outflows, the company successfully secured a total subscription amount of $1 billion during the year[43] - Institutional clients accounted for 57% of total AUM, a decrease from 60% in the previous year, while retail investors represented 43%, up from 40%[69] Strategic Initiatives - The company launched the EMQQ Emerging Markets Internet and E-commerce ETF on July 25, 2022, listed on the Hong Kong Stock Exchange[26] - In December 2022, the company introduced its first asset management application in Hong Kong, allowing investors to view their portfolios and invest in various mutual funds[27] - The company continues to expand its business in the Chinese market, focusing on institutional clients and private fund managers, with plans to obtain a public fund management license[51] - The company is expanding its institutional business in North Asia and EMEA regions, with key appointments to strengthen management capabilities[44] - The company plans to introduce more innovative investment solutions to meet the evolving needs of local and global investors[60] Corporate Governance - The company has a commitment to maintaining high standards of corporate governance and transparency in its operations[107] - The Group's board includes independent non-executive directors with significant experience in finance and management, enhancing governance[107][110] - The company has established clear responsibilities for its committees, including the audit and remuneration committees, to enhance corporate governance[196] - The company has complied with the corporate governance code as stipulated by the Hong Kong Stock Exchange throughout the year 2022[184] - The independent non-executive directors confirmed their independence in accordance with listing rules, ensuring no significant relationships with the company[192] Employee and Management - Fixed salaries and employee benefits increased by 3.9% to HKD 254.4 million in 2022, compared to HKD 244.8 million in 2021[86] - The total bonus for 2022 was HKD 51.8 million, down from HKD 108.1 million in 2021[86] - The company maintains a commitment to providing a fair and safe working environment, competitive compensation, and development opportunities for employees[176] - The Group's investment management team is led by experienced professionals with a strong track record in research and portfolio management[101][102] - The company has a robust investment management team, with members holding advanced degrees from prestigious universities such as the University of Chicago and Cornell University[115][117] Shareholder Actions - The company proposed a dividend of HKD 0.034 per share for 2022, reflecting confidence in its future prospects despite the losses[32] - The company did not declare an interim dividend for 2022, and the final dividend per share was reduced to HKD 3.4 from HKD 8.0 in 2021, a decrease of 57.5%[72] - The company repurchased shares worth HKD 58 million in 2022, accounting for 1.3% of the issued shares[32] - The board believes that the share repurchase reflects confidence in the company's long-term business prospects and benefits shareholders[171] - The company reported a final dividend of HKD 0.034 per share for the year ended December 31, 2022, pending shareholder approval at the annual general meeting[133] Risk Management - The company has a strong risk management framework led by its Chief Risk Officer, Mr. Sun Zhijian, who has over 25 years of experience in the field[130] - The company emphasizes the importance of compliance and regulatory knowledge, as demonstrated by Ms. Li Hui Wen, the Chief Compliance Officer, who has extensive experience in asset management and regulatory affairs[123] - There were no reported non-compliance issues with relevant laws and regulations that significantly impacted the group during the year[178] - The audit firm PricewaterhouseCoopers has audited the consolidated financial statements for the year ended December 31, 2022, and is willing to be reappointed[181] - The audit committee conducted four meetings in 2022, with all members present at each meeting, focusing on financial reporting procedures and risk management[196][200]

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].

Financial Performance - Total revenue for the six months ended June 30, 2021, was HKD 707.8 million, an increase of 22.1% compared to HKD 579.8 million in 2020[15] - Performance fees surged by 485.3% to HKD 91.3 million, up from HKD 15.6 million in the previous year[15] - Operating profit (excluding other income) increased by 68.6% to HKD 193.4 million, compared to HKD 114.7 million in 2020[15] - Net profit attributable to owners rose by 67.2% to HKD 209.8 million, up from HKD 125.5 million in the prior year[15] - Total revenue for the first half of 2021 reached HKD 707.8 million, a 22.1% increase compared to HKD 579.8 million in the same period of 2020[34] - Performance fees surged to HKD 91.3 million, marking a 485.3% increase from HKD 15.6 million in the previous year[34] - Operating profit (excluding other income) rose to HKD 193.4 million, up 68.6% from HKD 114.7 million year-on-year[34] - Net profit attributable to the company's owners increased to HKD 209.8 million, a 67.2% rise from HKD 125.5 million in the first half of 2020[34] Assets and Management - The total assets under management as of June 30, 2021, were USD 12.985 billion, a decrease of 8.3% from USD 14.166 billion at the end of 2020[16] - The company experienced net outflows of USD 1.7 billion during the period, leading to a slight decrease in total management fees by 3.4% to HKD 501.9 million[18] - The average return on managed funds increased by 4.3% during the first six months of the year, contributing to the significant rise in performance fees[18] - As of June 30, 2021, the group's total assets under management (AUM) were $12.985 billion, down from $14.166 billion as of December 31, 2020, primarily due to net redemptions of $1.675 billion[27] - The average AUM for the first half of 2021 was $13.488 billion, compared to $12.403 billion in the same period of the previous year[29] - Institutional clients accounted for 60% of total AUM, down from 68% as of December 31, 2020, while retail investors increased their share to 40% from 32%[32] - The group's brand funds contributed 80% to total AUM as of June 30, 2021, up from 73% at the end of 2020[31] - The absolute return long-only funds represented 68% of total AUM, a slight increase from 67% at the end of 2020[31] Investments and Strategies - The company launched a new Asia strategy bond product and expanded its UCITS fund series in response to diverse investor needs[19] - The first China A-share ETF product was successfully listed in Malaysia, marking it as the first Sharia-compliant ETF investing in China A-shares[22] - The company is actively preparing to leverage new opportunities from the rapid opening of the Chinese financial market, particularly the Greater Bay Area cross-border wealth management scheme[20] - The company plans to introduce more strategies, including thematic investment products and fixed-income strategies, in the remaining part of the year[19] - The flagship value fund achieved a year-to-date return of 9.1%, outperforming the Hang Seng Index by 1.8%[19] - The high-dividend stock fund recorded a return of 9.6%, compared to the MSCI AC Asia (ex-Japan) index return of 6.4%[19] Financial Health and Cash Management - The company maintained a strong balance sheet with a net cash position of HKD 1.9 billion and no corporate bank borrowings as of June 30, 2021[18] - Fixed operating expenses decreased by 7.3% to HKD 159.3 million, reflecting strict cost control measures[18] - The net cash balance at the end of the first half of 2021 was HKD 1.9389 billion, with net cash inflow from operating activities of HKD 1.1569 billion[43] - The group had no corporate bank borrowings and did not pledge any assets as collateral for overdrafts or other loan financing, resulting in a debt-to-equity ratio of zero[43] - The total equity as of June 30, 2021, was HKD 5.0171 billion, with a total of 1.85 billion shares issued[44] Shareholder and Corporate Governance - The company received recognition as the "Best Foreign Wholly-Owned Enterprise" in China by Asian Asset Management in early 2021[20] - The company expressed gratitude to shareholders, business partners, distributors, and customers for their support, as well as to employees for their contributions to the group's achievements[128] - The company is committed to maintaining high standards of corporate governance and regularly reviews its practices to meet evolving shareholder expectations[125] - All directors confirmed compliance with the standard code of conduct for securities transactions during the six months ended June 30, 2021[126] Employee and Management Compensation - The total remuneration for key management personnel was HKD 22,370,000 for the six months ended June 30, 2021, compared to HKD 14,392,000 for the same period in 2020[101] - Fixed salaries and employee benefits slightly decreased by HKD 2.3 million to HKD 112.9 million in the first half of 2021, compared to HKD 115.2 million in the same period of 2020[40] - The discretionary bonus for the first half of 2021 amounted to HKD 53.3 million, up from HKD 36.1 million in the first half of 2020, representing an increase of approximately 47.5%[40] Stock Options and Equity - The company adopted a new share option plan on May 4, 2017, which will remain effective until December 16, 2021, with all unexercised options continuing to be valid[111] - The total number of stock options granted is 213,349,000, with 8,000,000 options exercised and 20,720,000 options expired, leaving 200,629,000 options available[114] - The fair value of stock options granted to employees is calculated using the Black-Scholes option pricing model, which considers the terms and conditions of the options granted[116] - The share options are part of the company's strategy to incentivize employees and align their interests with shareholders[111] Market and Economic Outlook - The company remains optimistic about the overall industry outlook, noting a 40% year-on-year increase in global investors' holdings of Chinese stocks and bonds, exceeding USD 800 billion[17] - The company maintains a cautiously optimistic outlook for the second half of 2021, focusing on strong fundamental companies to withstand potential market volatility[24]