Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 1,543,055,000, representing a 28% increase from HKD 1,207,792,000 in the same period of 2022[3] - The net profit attributable to ordinary shareholders decreased by 26% to HKD 119,420,000 from HKD 161,251,000 year-on-year[3] - Operating profit for the period was HKD 824,294,000, up from HKD 501,245,000 in the same period last year[4] - Total comprehensive income for the period was HKD 135,618,000, compared to HKD 120,654,000 in the previous year[5] - The group reported a net profit of HKD 122,177,000 for the period, compared to HKD 163,483,000 in the previous year, indicating a decrease of about 25%[14] - The group's profit before tax for the six months ended June 30, 2023, was HKD 119,420,000, a decrease from HKD 161,251,000 in the same period of 2022, representing a decline of approximately 26%[22] Income and Revenue Sources - Interest income increased by 29% to HKD 1,189,534,000 compared to HKD 924,606,000 in the previous year[3] - Commission and fee income decreased to HKD 341,975,000 in 2023 from HKD 451,312,000 in 2022, a decline of about 24%[16] - Interest and coupon income increased significantly to HKD 1,189,534,000 in 2023, up from HKD 924,606,000 in 2022, marking a rise of approximately 29%[16] - Wealth management segment revenue rose by 59% to HKD 893 million, primarily due to increased interest and coupon income in a rising interest rate environment[43] Dividends and Payouts - The interim dividend remained stable at HKD 95,540,000, with a payout ratio of 80%, up 21 percentage points from 59% in the previous year[3] - The group declared an interim dividend of approximately HKD 95,540,000 or HKD 0.01 per share for the period ended June 30, 2023, compared to HKD 95,878,000 or HKD 0.01 per share in 2022, indicating stability in dividend distribution[21] - The company maintained a high dividend payout ratio of approximately 80%, with an interim dividend of HKD 0.01 per share[37] Assets and Liabilities - Total assets as of June 30, 2023, increased by 9% to HKD 102,803,973,000 from HKD 94,455,086,000 at the end of 2022[3] - Total current liabilities increased to HKD 74,572,711 thousand as of June 30, 2023, compared to HKD 66,492,350 thousand as of December 31, 2022, representing an increase of approximately 16.0%[7] - Total liabilities rose by 10% to HKD 87.83 billion, up from HKD 79.52 billion at the end of 2022, primarily due to an increase in issued debt securities[47] - The company’s issued debt securities increased to HKD 34,292,775 thousand from HKD 28,719,537 thousand, representing a significant rise of approximately 19.5%[7] Cash and Liquidity - Cash and cash equivalents increased to HKD 11,970,928,000 from HKD 7,756,580,000, indicating improved liquidity[6] - Cash and cash equivalents rose by 54% compared to the end of 2022, amounting to HKD 11.97 billion, indicating strong liquidity[37] - The company’s cash and cash equivalents were not explicitly detailed in the provided data, but the overall financial position indicates a focus on maintaining liquidity amidst rising liabilities[9] Expenses and Costs - Total expenses for the group included professional and consulting fees of HKD 32,826,000, down from HKD 43,006,000 in 2022, a reduction of about 23%[19] - Employee costs increased to HKD 371,535,000 in 2023 from HKD 337,345,000 in 2022, reflecting a rise of approximately 10%[17] - Financing costs surged to HKD 712,145,000 in 2023, compared to HKD 330,149,000 in 2022, representing a significant increase of about 116%[18] - Total costs increased by 38% to HKD 1.44 billion, largely due to a significant rise in financing costs, with the average Hong Kong Interbank Offered Rate (HIBOR) increasing 12.58 times to approximately 3.52%[44] Market and Strategic Initiatives - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[13] - The company aims to enhance its wealth management services by leveraging a rich overseas product line and improving customer experience through financial technology[53] - The company plans to actively promote external asset management (EAM) services and strengthen cooperation with family offices to capitalize on market opportunities in Hong Kong[53] - The company will continue to focus on risk management and improving risk-adjusted returns as a core objective for sustainable growth[53] Governance and Compliance - The company has complied with all principles and code provisions of the corporate governance code during the reporting period, except for one instance of absence at the annual general meeting[56] - The interim financial information has been reviewed by external auditors, ensuring compliance with accounting principles and internal controls[58]

JUNAN INTERNATIONAL Stock Code 殷份代號：1788.HK STEADILY STRENGTHENING 持 濃便 葡 ANNUAL REPORT 年報 2022 | --- | --- | |-------|-------| | | | | | | | | | | | | | --- | --- | --- | |------------------|--------------------------|-------| | | | | | | | | | | | | | | | 目錄 | | | | | | | | | | | | | | | | | | 關於我們 | | | | 公司概況 | | 005 | | 獎項 | | 006 | | 主席報告 | | 008 | | | | | | | | | | | 業績及經營分析 | | | | | | | 財務摘要 | | 012 | | | | | | 管理層討論與分析 | | 014 | | | | | | | | | | 企業管治 | | | | | | | | | | | | 企業管治報告 | | 024 | | | 董 ...

Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 2,314,917,000, a decrease of 42% compared to HKD 3,966,415,000 in 2021[3] - Commission and fee income dropped by 47% to HKD 866,142,000 from HKD 1,626,079,000 in the previous year[3] - Net interest income decreased by 17% to HKD 1,896,682,000, down from HKD 2,280,539,000 in 2021[3] - The profit attributable to ordinary shareholders was HKD 80,381,000, reflecting a significant decline of 93% from HKD 1,094,743,000 in 2021[3] - The total comprehensive income for the year was HKD 33,847,000, a significant drop from HKD 1,150,265,000 in 2021[4] - The company's net profit attributable to ordinary shareholders for 2022 was HKD 80,381,000, a significant decrease from HKD 1,094,743,000 in 2021, resulting in basic earnings per share of HKD 0.8 compared to HKD 11.4 in the previous year[26][28] Assets and Liabilities - The total assets as of December 31, 2022, amounted to HKD 94,455,086,000, a decrease of 11% from HKD 106,288,093,000 in 2021[3] - Total liabilities decreased by 12% to HKD 79.52 billion as of December 31, 2022, mainly due to a 9% decline in issued debt securities to HKD 41.49 billion[51] - The group's current assets were HKD 77.67 billion as of December 31, 2022, a decrease of 12% from the end of 2021, with cash and cash equivalents increasing to HKD 7.757 billion from HKD 5.278 billion[54] Equity and Dividends - The total dividend declared was HKD 477,700,000, a decrease of 17% compared to HKD 576,259,000 in the previous year[3] - The company proposed a final special dividend of HKD 0.010 per share, bringing the total annual dividend to HKD 0.050 per share, with a payout ratio of 594%[39] - The company's equity attributable to ordinary shareholders decreased from HKD 15,307,361 in 2021 to HKD 14,806,699 in 2022, a decline of 3.3%[7] Operational Highlights - The company operates through five main segments: Wealth Management, Institutional Investor Services, Corporate Finance Services, Investment Management, and Others[13] - The company maintained a strong focus on risk management and operational resilience despite challenging market conditions[39] - The group aims to enhance its core competitiveness through excellent risk management and accelerate digital transformation, focusing on financial technology applications and cross-border wealth management services[58] Cost Management - The company's total expenses for the year included a significant reduction in other commission expenses, which decreased to HKD 42,708,000 from HKD 64,961,000 in 2021[21] - Total costs decreased by 15% year-on-year to HKD 2.293 billion, mainly due to lower financing costs and impairment provisions[48] - The company's employee costs totaled HKD 721,499 thousand in 2022, down from HKD 803,434 thousand in 2021, representing a decrease of about 10.2%[20] Market Conditions - The average daily trading volume in the Hong Kong stock market decreased by 25% year-on-year to HKD 124.9 billion[39] - The total amount raised from IPOs in the Hong Kong stock market dropped by 68% year-on-year to HKD 104.6 billion[39] Compliance and Governance - The company has adopted the corporate governance code as per the listing rules and has complied with all provisions throughout the year 2022[64] - The audit committee reviewed the accounting principles and practices adopted by the group and discussed matters related to auditing, internal control, and financial reporting[66] - The external auditor, KPMG, verified the financial data in the annual performance announcement, which is consistent with the audited consolidated financial statements[66] Shareholder Engagement - The company expressed gratitude to shareholders and customers for their trust and support, as well as to the board and all employees for their hard work and contributions during the year[68] - The annual report for the year ending December 31, 2022, will be sent to shareholders and published on the company's website at an appropriate time[69]

Financial Performance - Total revenue for the first half of 2021 reached HKD 2,513,018,000, a 40% increase from HKD 1,797,789,000 in the same period of 2020[6] - Net profit attributable to ordinary shareholders increased by 55% to HKD 937,604,000, up from HKD 605,583,000 in 2020[6] - The group's revenue reached approximately HKD 25.13 billion, a 40% increase compared to HKD 17.98 billion in the same period last year, marking a historical high[25] - Profit attributable to ordinary shareholders was approximately HKD 9.38 billion, a significant increase of 55% from HKD 6.06 billion in the previous year, also a historical high[25] - Revenue for the six months ended 30 June 2021 was HK$2,513,018,000, an increase of 9.0% compared to HK$2,308,000,000 in the same period of 2020[142] - Operating profit for the period was HK$1,557,014,000, representing a significant increase from HK$1,137,083,000 in the previous year[142] - Profit before taxation reached HK$1,107,085,000, up from HK$704,342,000, marking a growth of 57.1% year-on-year[142] - The profit for the period was HK$943,509,000, compared to HK$609,050,000 in the previous year, reflecting a growth of approximately 54.7%[179][192] Revenue Sources - Commission and fee income rose by 60% to HKD 986,852,000, compared to HKD 618,481,000 in the previous year[6] - Commission income rose by 60% to HKD 9.87 billion, accounting for 39% of total revenue, driven by substantial growth in brokerage, corporate finance, and asset management services[30] - Wealth management segment revenue increased by 49% to HKD 9.94 billion, while investment management revenue surged 12 times to HKD 2.25 billion[25] - Brokerage income saw a significant rise of 68% to HKD 4.63 billion, with securities trading commission income increasing by 83% to HKD 4.22 billion, primarily from Hong Kong and US stock markets[35] - Interest and coupon income reached HKD 1,270,311,000, indicating a strong performance in lending activities[177] Assets and Liabilities - Total assets as of June 30, 2021, were HKD 139,153,710,000, reflecting a 14% increase from HKD 121,720,741,000 at the end of 2020[6] - Total liabilities increased to HK$112,311,691, compared to HK$94,613,996 at the end of 2020, indicating a rise of around 18.6%[146] - Client loans and advances surged by 80% to HKD 28 billion, reflecting growth in wealth management and client demand[68] - The leverage ratio increased to 7.70 times as of June 30, 2021, compared to 6.81 times at the end of 2020, indicating higher financial leverage[74] Risk Management - The group has established credit risk policies and key risk thresholds to manage credit risk effectively[88] - The market risk is influenced by fluctuations in interest rates, credit spreads, exchange rates, and security prices[89] - The risk management committee is responsible for approving overall risk management strategies and significant risk limits[91] - The group conducts regular monitoring of major concentration risks and reports to the risk committee[99] - The group has implemented stress testing to assess market risk under various scenarios[91] Dividends and Shareholder Information - The dividend payout increased by 47% to HKD 480,069,000, compared to HKD 325,652,000 in the previous year[6] - The board declared an interim dividend of HKD 0.05 per share for the six months ending June 30, 2021, to be paid on September 23, 2021[105] - As of June 30, 2021, the total number of issued shares was 9,618,994,707[109] Employee and Corporate Governance - The group employed a total of 624 employees as of June 30, 2021, with competitive compensation packages based on market levels and individual expertise[82] - The audit committee consists of four independent non-executive directors, ensuring compliance with accounting principles and internal controls[131] - The company has adopted all principles and code provisions of the Corporate Governance Code during the reporting period[128] Financial Position and Cash Flow - Cash and cash equivalents stood at HK$5,161,495, slightly down from HK$5,508,779, indicating a decrease of approximately 6.3%[146] - For the six months ended June 30, 2021, net cash flows used in operating activities amounted to HK$ (9,779,638) thousand, compared to HK$ (16,873,164) thousand in 2020, indicating an improvement[154] - The company reported a net decrease in cash and cash equivalents of HK$ 9,603,562 thousand for the six months ended June 30, 2021[154] Strategic Initiatives - The group established a Fin-tech business development department to enhance technological innovation and data governance capabilities[22] - The group aims to enhance its core competitiveness through financial technology and expand wealth management services and investment channels[79] - The group plans to explore Southeast Asian markets, particularly through its subsidiaries in Singapore and Vietnam, leveraging the "Belt and Road" initiative[79] Compliance and Reporting - The interim financial report was prepared in accordance with HKAS 34, ensuring compliance with relevant accounting standards[139] - The interim financial report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[164] - The preparation of the interim financial report requires management to make judgments, estimates, and assumptions that may differ from actual results[162]

Financial Performance - The company reported a significant revenue increase of 40% to HKD 4.246 billion for the fiscal year 2019[17]. - Net profit attributable to shareholders grew by 12% to HKD 895 million, maintaining high-quality sustainable growth[17]. - Basic earnings per share increased by 11.4% to HKD 0.117, with a proposed final dividend of HKD 0.020 per share, resulting in a total dividend of HKD 0.062 per share for the year[17]. - The dividend yield reached approximately 6.4% based on the closing stock price on March 20, 2020[17]. - The group’s revenue for the year ended December 31, 2019, was HKD 4,245,536,000, representing a 40.3% increase from HKD 3,025,890,000 in 2018[27]. - The net profit for the year was HKD 902,559,000, a 6.3% increase compared to HKD 849,174,000 in the previous year[27]. - The basic earnings per share increased to HKD 11.7, up 11.4% from HKD 10.5 in 2018[27]. - The company reported a total profit attributable to shareholders of approximately HKD 895 million for the year ended December 31, 2019, representing a year-on-year growth of 12.4% from HKD 797 million in 2018[53]. - Total revenue for the year reached approximately HKD 4.246 billion, a significant increase of 40.3% compared to HKD 3.026 billion in 2018[53]. Business Strategy and Development - The company aims to provide a richer array of investment products and establish a broader sales network to attract more professional investment advisors in 2020 and beyond[12]. - The transformation from a traditional brokerage to a comprehensive wealth management expert has been successfully implemented, focusing on customized financial products and services[5]. - The company plans to enhance its wealth management services and expand its market presence in Southeast Asia, particularly in Vietnam[26]. - The company aims to further expand its business in Southeast Asia, leveraging opportunities from the Belt and Road Initiative[50]. - The company has successfully completed a business structure transformation to support sustainable development[17]. - The company aims to provide comprehensive investment and financing solutions to clients, leveraging its position as a quality financial services platform[73]. - The company plans to deepen its presence in Southeast Asia, having become the first Chinese broker to enter the Vietnamese market last year[74]. Risk Management - The risk management system is effectively integrated across all business lines to minimize risks and maximize returns for shareholders and investors[5]. - The company has implemented effective risk management measures, resulting in a healthier credit risk profile despite increased credit risks from market volatility[22]. - The company emphasizes a prudent risk management approach, enhancing proactive risk management and monitoring across various risk categories[76]. - The risk management framework is overseen by the board, which includes a risk committee that meets at least twice a year to review the effectiveness of risk management strategies[77]. - Credit risk management policies are in place, including independent monitoring and limit management based on borrower assessments[79]. - The company has strengthened its risk management framework and increased provisions for expected credit losses to enhance its balance sheet resilience[73]. Market Position and Achievements - The company has achieved a leading position in bond issuance and underwriting capabilities, reflecting its strong market presence[10]. - The company has expanded its market presence in Singapore and Vietnam, reinforcing its strategy as the Southeast Asian flagship of Guotai Junan Securities[10]. - The company received multiple industry awards in 2019, enhancing its brand influence in the Southeast Asian financial markets[14]. - The company received investment-grade credit ratings from global rating agencies, indicating strong financial stability[10]. - The company was included in the FTSE4Good Index, recognizing its commitment to corporate social responsibility[24]. Shareholder Returns and Dividends - The company emphasized a commitment to providing real, observable, and sustainable cash returns to shareholders[17]. - The dividend payout ratio increased to 57%, up from 51% in the previous year, reflecting a 6 percentage point increase[27]. - The board proposed a final dividend of HKD 0.020 per share, bringing the total dividend for the year to HKD 0.062 per share, up from HKD 0.053 per share in 2018[53]. - The company aims to distribute a fixed dividend representing 30% to 50% of the group's after-tax profit, with historical distributions between 50% to 57% from 2016 to 2019[125]. Corporate Governance - The company adheres to high standards of corporate governance, complying with all principles of the corporate governance code, except for one specific provision[91]. - The board consists of four executive directors, two non-executive directors, and four independent non-executive directors, ensuring a balanced composition with strong independent elements[92]. - The company has established a risk culture that encourages discussion and suggestions for improving risk management practices[90]. - The board meets at least four times a year, with regular meetings scheduled approximately quarterly, ensuring adequate notice and participation opportunities for all directors[98]. - The company has implemented a policy for the appointment and re-election of directors, requiring a rotation every three years[95]. Financial Health and Stability - The total assets of the company reached HKD 96,738,157,000 in 2019, an increase of approximately 10% from HKD 88,034,291,000 in 2018[39]. - The total liabilities of the company amounted to HKD 96,738,157,000, with bank borrowings at HKD 11,249,881,000[39]. - The equity attributable to shareholders increased by 4% to approximately HKD 112.96 billion as of December 31, 2019, compared to HKD 108.32 billion in 2018[68]. - The company reported a net cash inflow of HKD 31.12 billion for the year ended December 31, 2019, compared to HKD 18.9 billion in 2018[69]. Employee and Management Structure - Employee compensation is competitive, with a total of 560 employees as of December 31, 2019, and annual reviews based on performance[75]. - The management team has a diverse background in finance, compliance, and risk management, enhancing the company's operational capabilities[130][131][132][133]. - The company emphasizes continuous professional development for all directors, covering corporate governance and regulatory updates[101]. Related Party Transactions - The independent non-executive directors confirmed that the related party transactions are conducted in the ordinary course of business and on normal commercial terms[172]. - The company has complied with the applicable disclosure requirements under the Listing Rules regarding non-exempt continuing connected transactions[171]. - The total annual cap for brokerage services provided to Guotai Junan Group increased from HKD 19 million in 2018 to HKD 26 million in 2019, with a projected cap of HKD 35 million for 2020[167].