安國際 成示 GUOTAI JUNAN INTERNATIONAL Stock Code 股份代號 = 1788 HK ● ● ● : - - ● ● ", " . . ● ● ● ● ● . . ● - : . @ . . . . . . ..... . . ● ● ● ● � ● ● ● � ● . ● l ● 0 . . ● ● o ● ● the sub . EADY 穩健發展 IROWT INTERIM REPORT 2024 中期報告 目錄 公司資料 2 財務摘要 3 管理層討論與分析 4 其他資料 14 中期財務報告審閱報告 38 綜合損益及其他全面收益表 40 綜合財務狀況表 41 綜合權益變動表 44 簡明綜合現金流量表 46 中期財務報告附註 48 詞彙 98 ● . 國泰君安國際 | 2024中期報告 公司資料 | --- | --- | |-----------------------------------------------------|--------------------------------------------| | 董事會 | ESG 委員會成員 傅廷美博士 （ ...

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 2,170,922,000, representing a 41% increase compared to HKD 1,543,055,000 for the same period in 2023[3] - Net interest income increased by 30% to HKD 1,095,004,000 from HKD 840,078,000 year-on-year[3] - Net trading and investment income surged by 99% to HKD 717,407,000, up from HKD 361,002,000 in the previous year[3] - Profit attributable to ordinary shareholders rose by 63% to HKD 194,937,000, compared to HKD 119,420,000 in the same period last year[3] - Total revenue for the six months ended June 30, 2024, reached HKD 2,143,531,000, an increase from HKD 1,565,346,000 for the same period in 2023, representing a growth of approximately 36.8%[13][14] - The pre-tax profit for the group was HKD 197,309,000 for the six months ended June 30, 2024, compared to HKD 112,149,000 in the same period of 2023, indicating a growth of approximately 76.0%[13][14] - The group's profit before tax for the six months ended June 30, 2024, was HKD 194,937,000, up from HKD 119,420,000 in 2023, indicating a year-on-year increase of 63.2%[24] Dividends and Earnings - The company declared a dividend of HKD 114,576,000, a 20% increase from HKD 95,540,000 in the prior year[3] - Basic and diluted earnings per share increased by 63% to HKD 2.04, compared to HKD 1.25 for the same period in 2023[5] - The company declared an interim dividend of approximately HKD 114,576,000 or HKD 0.012 per share for the period ended June 30, 2024, compared to HKD 95,540,000 or HKD 0.01 per share in 2023, marking a 20.5% increase[23] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 122,497,696,000, reflecting a 14% increase from HKD 107,535,153,000 at the end of 2023[3] - Current liabilities total HKD 99,440,646 thousand as of June 30, 2024, compared to HKD 77,926,518 thousand as of December 31, 2023, representing an increase of approximately 27.5%[7] - Total liabilities as of June 30, 2024, were HKD 1,143,029,000, compared to HKD 712,145,000 in 2023, indicating a substantial increase of 60.5%[20] - Total assets less current liabilities stand at HKD 23,057,050 thousand as of June 30, 2024, down from HKD 29,608,635 thousand as of December 31, 2023, reflecting a decrease of approximately 22.2%[7] - The issued debt securities amount to HKD 46,420,871 thousand as of June 30, 2024, significantly higher than HKD 31,427,498 thousand as of December 31, 2023, marking an increase of approximately 47.8%[7] Financial Ratios and Returns - The annualized return on equity improved to 2.6%, up from 1.6% in the previous year, marking a 1 percentage point increase[3] - As of June 30, 2024, the group's nominal leverage ratio was 7.35 times, up from 6.39 times at the end of 2023, while the adjusted leverage ratio was 4.28 times, compared to 3.14 times at the end of 2023[51] Costs and Expenses - Employee costs, including directors' remuneration, increased to HKD 385,455,000 in 2024 from HKD 371,535,000 in 2023, reflecting a rise of about 3.0%[19] - Total costs increased by 34% to HKD 1.946 billion, mainly due to rising financing costs and increased demand for quality fixed-income assets[47] Strategic Initiatives - The company plans to continue expanding its investment management services and enhance its technology capabilities to drive future growth[13] - The company is focusing on strategic acquisitions and market expansion to strengthen its competitive position in the financial services sector[13] - The group plans to enhance its wealth management business and accelerate digital transformation, focusing on optimizing the investment application "Junhong Global" for a one-stop trading platform[58] - The group aims to leverage regional synergies through its subsidiaries in Singapore, Vietnam, and Macau to provide comprehensive financial services[58] Market Performance - The group participated in 113 bond issuances in the first half of 2024, a significant increase of 82% year-on-year, with a total issuance scale of approximately HKD 187.7 billion, up 170% year-on-year[43] - The group completed 32 ESG bond projects in the first half of 2024, a substantial increase of 220% year-on-year, with a total issuance scale of nearly HKD 70 billion, up 438% year-on-year[44] Impairments and Provisions - The company reported a net impairment provision for loans and advances of HKD 21,484,000 in 2024, compared to HKD 19,292,000 in 2023, indicating a slight increase in provisions[13][14] - The net impairment provision for loans and advances to customers was HKD 2,126,284,000 as of June 30, 2024, slightly up from HKD 2,104,800,000 at the end of 2023, showing a marginal increase of 1.0%[26] - The net impairment provision for other financial assets was HKD 3,243,000 in 2024, significantly higher than HKD 861,000 in 2023, indicating a rise of 276.0%[21] Other Financial Metrics - Cash and cash equivalents rose significantly by 63% to HKD 12.07 billion, indicating strong liquidity and financial health[41] - The net cash inflow for the group was HKD 4.67 billion for the first half of 2024, compared to HKD 4.21 billion in the same period of 2023[52] - The company's marketing, advertising, and promotional expenses rose to HKD 2,787,000 in 2024 from HKD 1,309,000 in 2023, representing a significant increase of 113.8%[21]

Financial Performance - In 2023, the company achieved a significant profit increase of 150% year-on-year despite market volatility[16]. - The company's revenue for 2023 reached HKD 3,217,372, an increase of 39% compared to HKD 2,314,917 in 2022[20]. - Profit attributable to ordinary shareholders surged by 150% to HKD 201,261, up from HKD 80,381 in the previous year[20]. - Interest income rose by 22% to HKD 1,810,154, while net trading and investment income turned positive at HKD 717,644, compared to a loss of HKD 37,486 in 2022[20]. - Wealth management revenue increased by 46% to HKD 1,856,000, driven by rising interest income[31]. - Total comprehensive income for the year was HKD 225,880, compared to HKD 33,847 in 2022, indicating strong financial performance[177]. - Basic earnings per share rose to 2.1 HK cents, up from 0.8 HK cents in the previous year, demonstrating enhanced profitability[177]. Business Transformation and Services - The company has successfully transformed from a traditional brokerage firm to a comprehensive financial services provider, covering brokerage, corporate finance, asset management, and financing[9]. - The company has expanded its services to high-net-worth individuals, corporate issuers, and financial institutions across mainland China, Hong Kong, and overseas markets[8]. - The company launched a new trading platform and cash management products as part of its digital transformation initiatives[18]. - The company is focused on enhancing its digital wealth management capabilities and developing diversified financial products[4]. - The company launched a one-stop global investment app, enhancing user experience and expanding its wealth management offerings[33]. Risk Management - The company maintained a strong risk management framework, resulting in no major risk events occurring during the year[16]. - The company emphasizes a solid risk management framework to improve risk-adjusted net asset returns, ensuring long-term support from investors[49]. - The group maintains a risk management framework that includes risk culture, governance, and the definition of risk appetite and limits, which assists the board in identifying and assessing significant risks, including ESG risks[81]. - The risk committee is responsible for overseeing the construction, execution, and monitoring of the risk management system[80]. 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[51]. - The board of directors consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors, ensuring high independence for objective decision-making[53]. - The board has established effective mechanisms to maintain its independence, with over one-third of its members being independent non-executive directors[58]. - The company has implemented strict nomination procedures for directors, ensuring that all independent non-executive directors confirm their independence annually[58]. - The board meetings are scheduled with at least 14 days' notice, allowing all directors to participate[61]. Sustainability and ESG Initiatives - The company is actively promoting sustainable development and green finance initiatives[4]. - The company assisted in the issuance of 35 ESG-related bonds, with a total issuance scale exceeding HKD 80 billion[36]. - The ESG committee has approved the carbon reduction target plan and community investment plan for the upcoming year, reflecting the group's commitment to sustainability[83]. - The company successfully offset its greenhouse gas emissions from operations in 2022, achieving carbon neutrality for the first time through the purchase of carbon sink assets from certified forestry projects in mainland China[145]. Shareholder Communication - The company held its annual general meeting on May 22, 2023, and two special general meetings on October 10 and December 20, 2023, to facilitate direct communication with shareholders[93]. - The company encourages stakeholders to submit inquiries and feedback through written communication to the board via the company secretary[98]. - The company’s shareholder communication policy outlines various channels for stakeholders to express opinions on matters affecting the group[93]. - The company’s investor relations team is responsible for responding to inquiries from investors and media, facilitating meetings as needed[93]. Financial Position and Assets - The total assets of the company grew by 14% to HKD 107,535,153, reflecting strong business development[20]. - The total liabilities of the group rose by 16% to HKD 92.57 billion as of December 31, 2023 (HKD 79.52 billion at the end of 2022)[41]. - The group's equity increased by 0.2% to HKD 14.96 billion as of December 31, 2023[41]. - The gross carrying amount of loans and advances to customers was HK$7,866 million, down from HK$8,589 million in 2022, with an expected credit loss (ECL) allowance of HK$2,105 million compared to HK$2,197 million in 2022[153]. Management and Leadership - Dr. Yan Feng has been the Executive Director and Chairman since August 2012, with over 30 years of experience in the securities industry[101]. - Ms. Qi Haiying has been the Executive Director and CEO since December 2021, previously serving as Deputy CEO from March 2015 to December 2021[101]. - The company has a strong management team with members holding advanced degrees from prestigious institutions, enhancing its strategic capabilities[102]. - The management team emphasizes compliance and strategic management, reflecting a commitment to regulatory standards and market positioning[102]. Related Party Transactions - The company has established internal controls to ensure that related party transactions comply with pricing policies and regulatory requirements[139]. - The ongoing related party transactions are expected to be conducted on normal commercial terms and are in the best interest of shareholders[138]. - The company has entered into several commitment revolving loan agreements totaling HKD 1,600,000,000, with a repayment date of 12 months from the agreement date[140].

Revenue and Profit Growth - Revenue increased by 39% to HKD 3,217,372 thousand in 2023 compared to HKD 2,314,917 thousand in 2022[3] - Net profit attributable to ordinary shareholders surged by 150% to HKD 201,261 thousand in 2023 from HKD 80,381 thousand in 2022[3] - Total revenue for 2023 reached 3,217,372 thousand HKD, compared to 2,314,917 thousand HKD in 2022, representing a significant increase[23] - Revenue increased by 39% year-on-year to HKD 3.217 billion, with net profit attributable to ordinary shareholders surging 150% to HKD 201 million[43] - Net profit for the group rose to HKD 206.11 million in 2023, compared to HKD 83.04 million in 2022, reflecting improved performance across most segments[17][18] Segment Performance - Wealth Management segment revenue increased to HKD 1,855.91 million in 2023, up from HKD 1,271.27 million in 2022, driven by higher interest income and commission fees[17][18] - Institutional Investor Services segment revenue decreased to HKD 1,010.41 million in 2023 from HKD 1,329.51 million in 2022, primarily due to lower trading and investment gains[17][18] - Corporate Finance Services segment revenue declined to HKD 197.69 million in 2023 from HKD 287.02 million in 2022, reflecting reduced commission and fee income[17][18] - Investment Management segment turned profitable with revenue of HKD 153.36 million in 2023, compared to a loss of HKD 572.87 million in 2022, driven by improved trading and investment performance[17][18] - Wealth management division revenue increased by 46% to HKD 1.856 billion (2022: HKD 1.271 billion), while institutional investor division revenue decreased by 24% to HKD 1.01 billion (2022: HKD 1.33 billion)[52] - Corporate finance division revenue decreased by 31% to HKD 198 million (2022: HKD 287 million), and investment management division turned a profit of HKD 153 million (2022: loss of HKD 573 million)[52] Interest Income and Financial Products - Interest income rose by 22% to HKD 1,810,154 thousand in 2023 from HKD 1,486,261 thousand in 2022[3] - Bank and other interest income surged to 1,166,075 thousand HKD in 2023, up from 391,854 thousand HKD in 2022[23] - Interest income increased by 22% to HKD 1.81 billion (2022: HKD 1.486 billion), driven by a 198% surge in interest income from banking and other sources to HKD 1.166 billion[51] - Net revenue from financial products rose 85% year-on-year to HKD 760 million, driven by global interest rate hikes and increased client demand[43] - Trading and investment turned a profit of HKD 718 million (2022: loss of HKD 37.49 million), with financial product income up 85% to HKD 760 million[51] Assets and Liabilities - Total assets grew by 14% to HKD 107,535,153 thousand in 2023 from HKD 94,455,086 thousand in 2022[3] - Total current assets increased to HKD 89,812,402 thousand in 2023 from HKD 77,672,831 thousand in 2022[5] - Total liabilities rose to HKD 77,926,518 thousand in 2023 from HKD 66,492,350 thousand in 2022[6] - Total assets increased by 14% to HKD 107.53 billion (2022: HKD 94.46 billion), while total liabilities increased by 16% to HKD 92.57 billion (2022: HKD 79.52 billion)[54][55][56] - Current assets increased by 16% to HKD 89.81 billion, with cash and cash equivalents at HKD 7.408 billion (2022: HKD 7.757 billion)[58] Dividends and Shareholder Returns - Total dividends doubled to HKD 191,078 thousand in 2023 from HKD 95,608 thousand in 2022[3] - The company proposed a final dividend of 0.01 HKD per ordinary share for 2023, totaling 95,539 thousand HKD[27] - The company proposed a final dividend of HKD 0.010 per share for the year ending December 31, 2023, bringing the total annual dividend to HKD 0.020 per share[62] Earnings and Share Performance - Earnings per share (basic and diluted) increased by 163% to HKD 2.1 cents in 2023 from HKD 0.8 cents in 2022[3] - Basic earnings per share for 2023 were calculated based on a profit attributable to ordinary shareholders of 201,261 thousand HKD, up from 80,381 thousand HKD in 2022[30] Financial Statements and Compliance - The financial data for 2023 and 2022 is extracted from the statutory consolidated financial statements[8] - The company has submitted financial statements for the year ended December 31, 2022, and will submit for 2023 in due course[8] - The financial data is prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS)[9] - The company has not applied any new standards or interpretations that are not yet effective[10] - The adoption of revised HKFRS has no significant impact on the financial statements[10] - The company will disclose information related to Pillar Two income taxes when relevant tax laws are enacted or substantially enacted[14] - The audit committee reviewed the company's accounting principles, internal controls, and financial reporting, including the annual results announcement and consolidated financial statements for the year ending December 31, 2023[66] - The external auditor, KPMG, confirmed that the financial data in the annual results announcement matched the audited consolidated financial statements for the year ending December 31, 2023[67] Operational and Strategic Highlights - The company successfully obtained key qualifications such as the first batch of overseas eligible participants for "Swap Connect" and the first batch of eligible market makers for the "HKD-RMB Dual Counter Model"[45] - Launched the "Junhong Global Connect" app and created the HKD/USD money market fund and cash management product "Wealth Treasure" to cater to client needs[46] - Completed 4 IPO sponsorship projects in Hong Kong, including Beijing SinoHytec Co., Ltd. and UBTECH Robotics Corp., and assisted 26 companies in raising funds in the stock market[48] - Issued over HKD 80 billion in sustainable finance-related projects, including 35 ESG-related bonds, and achieved operational carbon neutrality for the first time[50] - The company expects continued global economic pressure in 2024 but plans to focus on wealth management, cross-border financial services, and digital transformation to expand customer resources and diversify revenue sources[61] Costs and Expenses - Employee costs increased to 781,340 thousand HKD in 2023 from 721,499 thousand HKD in 2022[24] - Financing costs rose significantly to 1,495,006 thousand HKD in 2023 from 676,664 thousand HKD in 2022[25] - Total costs increased by 32% to HKD 3.039 billion, with financing costs up 1.2 times due to rising global interest rates[53] Loans and Receivables - Margin loans decreased to HKD 7,631,029 thousand in 2023 from HKD 8,120,943 thousand in 2022, a decline of 6.0%[32] - Term loans to customers dropped significantly to HKD 235,365 thousand in 2023 from HKD 467,662 thousand in 2022, a decrease of 49.7%[32] - Total receivables increased to HKD 8,461,351 thousand in 2023 from HKD 5,674,142 thousand in 2022, a growth of 49.1%[33] - Brokerage and dealer receivables surged to HKD 6,660,076 thousand in 2023 from HKD 3,630,107 thousand in 2022, an increase of 83.5%[33] Payables and Borrowings - Total payables rose to HKD 18,048,359 thousand in 2023 from HKD 16,726,328 thousand in 2022, an increase of 7.9%[37] - Unsecured bank borrowings increased to HKD 9,918,099 thousand in 2023 from HKD 9,305,775 thousand in 2022, a rise of 6.6%[39] Capital Commitments and Underwriting - Capital commitments for system upgrades and property renovations amounted to HKD 11,614 thousand in 2023, up from HKD 9,798 thousand in 2022[40] - No underwriting commitments were recorded as of December 31, 2023, compared to HKD 1,755 million in 2022[41] Corporate Governance and Shareholder Meetings - The company complied with all corporate governance code provisions except for the absence of the board chairman at the 2023 annual general meeting due to other official duties[64] - The company will suspend share transfer registration from May 17 to May 22, 2024, to determine shareholders' rights to attend and vote at the annual general meeting[63] - No repurchase, sale, or redemption of listed securities was conducted by the company or its subsidiaries during the year ending December 31, 2023[64] Accounting Policy Changes - The company changed its accounting policy for long service payment liabilities following the HKICPA guidance on the cancellation of the MPF-LSP offset mechanism, effective from May 1, 2025[15] - The accounting policy change resulted in a compensatory profit adjustment for service costs up to June 2022, with no material impact on the consolidated financial position as of December 31, 2022 and 2023[15] Leverage and Debt Ratios - Nominal leverage ratio increased to 6.39x (2022: 5.44x), and debt-to-equity ratio decreased to 1.06x (2022: 1.09x)[57] Foreign Exchange and Risk Management - The company's foreign exchange risk is primarily managed through back-to-back transactions with external counterparties, with minimal impact from other foreign currencies[60] Share Issuance and Capital Structure - The company's issued shares remained unchanged at 9,553,994,707 shares for the year ending December 31, 2023[59] - The company has a HKD 35 billion medium-term note program and a USD 15 billion guaranteed structured note program, with outstanding notes of HKD 7.9 billion and USD 6 billion respectively[58] Acquisitions and Disposals - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures were made during the year ending December 31, 2023[59] Commission and Fee Income - Commission and fee income decreased by 20% to HKD 690 million (2022: HKD 866 million), with brokerage income down 9% to HKD 437 million (2022: HKD 481 million) and corporate finance income down 39% to HKD 142 million (2022: HKD 233 million)[51] - Brokerage commission revenue decreased to 436,777 thousand HKD in 2023 from 481,265 thousand HKD in 2022[23] - Placement, underwriting, and sub-underwriting commission revenue dropped to 141,754 thousand HKD in 2023 from 233,437 thousand HKD in 2022[23] - Financial product fee income declined to 55,224 thousand HKD in 2023 from 79,392 thousand HKD in 2022[23] - Interest income from customer and counterparty financing decreased to 452,244 thousand HKD in 2023 from 524,366 thousand HKD in 2022[23] Comprehensive Income and Equity - Total comprehensive income for the year was HKD 225,880 thousand in 2023, a significant increase from HKD 33,847 thousand in 2022[4] - Equity increased to 14,961,998 thousand HKD in 2023 from 14,936,196 thousand HKD in 2022[7] - Retained earnings rose to 5,135,203 thousand HKD in 2023 compared to 5,114,186 thousand HKD in 2022[7] - Non-controlling interests decreased to 122,525 thousand HKD in 2023 from 129,497 thousand HKD in 2022[7] Return on Equity - Return on equity improved by 0.9 percentage points to 1.4% in 2023 from 0.5% in 2022[3] Listing and Historical Information - The company's shares were listed on the Hong Kong Stock Exchange on July 8, 2010[8]

Financial Performance - The company reported a revenue of HKD 1,543,055,000 for the first half of 2023, representing a 28% increase compared to HKD 1,207,792,000 in the same period of 2022[7]. - Interest income rose by 29% to HKD 1,189,534,000, up from HKD 924,606,000 year-on-year[7]. - The net profit attributable to ordinary shareholders decreased by 26% to HKD 119,420,000, down from HKD 161,251,000 in the previous year[7]. - Total costs increased by 38% to HKD 1.44 billion, mainly 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%[20]. - Operating profit for the period was HKD 824,294,000, compared to HKD 501,245,000 in the previous year, reflecting a significant increase[60]. - The profit for the period attributable to owners of the parent was HKD 119,420,000, down from HKD 161,251,000 in the same period last year, representing a decrease of 26%[60]. - Total comprehensive income for the period attributable to owners of the parent was HKD 131,952,000, compared to HKD 118,422,000 in the previous year, indicating an increase of 11%[60]. Assets and Liabilities - Total assets increased by 9% to HKD 102,803,973,000 as of June 30, 2023, compared to HKD 94,455,086,000 at the end of 2022[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[23]. - The nominal leverage ratio increased to 6.02 times as of June 30, 2023, compared to 5.44 times at the end of 2022[24]. - As of June 30, 2023, the group's current assets amounted to HKD 85.33 billion, an increase of 10% compared to the end of 2022[26]. - The group's cash and cash equivalents balance was HKD 11.97 billion, up from HKD 7.76 billion at the end of 2022[26]. Dividends and Shareholder Returns - The company maintained a high dividend payout ratio of 80%, compared to 59% in the same period last year, reflecting a 21 percentage point increase[7]. - The interim dividend declared is HKD 0.01 per share, consistent with the previous year's interim dividend[33]. - The final dividend for 2022 paid to shareholders was HKD 95,540, reflecting the company's commitment to returning value to its investors[69]. Operational Developments - The company achieved its first operational carbon neutrality by offsetting greenhouse gas emissions through carbon credits from certified forestry projects[17]. - The new mobile trading application "Junhong Global" was launched to enhance digital financial services and improve customer experience[16]. - The company became one of the first qualified participants in the "Swap Connect" and "Dual Counter Model" for providing quality market-making services[15]. Risk Management and Strategic Focus - The group aims to enhance its wealth management services and expand its external asset management business in response to market opportunities[32]. - The group will continue to focus on risk management and improving risk-adjusted returns for investors[32]. Employee and Corporate Governance - The group employed a total of 617 employees as of June 30, 2023, with competitive compensation packages[31]. - The company has adopted all principles and code provisions of the Corporate Governance Code as of June 30, 2023[48]. - The audit committee consists of three independent non-executive directors, ensuring compliance with accounting principles and internal controls[52]. Financial Instruments and Derivatives - The total notional amount of current derivatives was HK$82,521,697,000, with assets of HK$1,797,266,000 and liabilities of HK$1,470,150,000[140]. - The total notional amount of interest rate derivatives was HK$12,495,536,000, with assets valued at HK$488,068,000 and liabilities of HK$271,177,000[140]. - The total financial liabilities at fair value through profit or loss amounted to HK$2,261,958 thousand as of June 30, 2023, up from HK$2,108,386 thousand as of December 31, 2022[160]. Share Options and Capital Structure - The company has a stock option plan that allows for the issuance of up to 10% of the total shares at the time of adoption, which equates to 164,000,000 shares[41]. - As of June 30, 2023, there were 43,334,428 share options outstanding, representing approximately 0.45% of the company's shares in issue[176]. - The company did not recognize any equity-settled share-based compensation expense for share options under the Share Option Scheme for the six months ended June 30, 2023[173]. Related Party Transactions - Professional and consultancy fees paid to fellow subsidiaries for capital market information amounted to HKD 19,500,000 for the period ended June 30, 2023, compared to HKD 24,000,000 in 2022[183]. - The Group's accounts receivable included a broker receivable from the ultimate holding company amounting to HKD 109,267,000, an increase of 23.8% from HKD 88,297,000 as of December 31, 2022[186].

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]

Company Transformation and Strategy - The company has successfully transformed from a traditional brokerage firm to a diversified financial services provider, focusing on brokerage, corporate finance, asset management, and financial products [11]. - The company aims to leverage its parent company's strong brand and capital support to enhance its international development strategy [13]. - The company has expanded its operations in Southeast Asia through subsidiaries in Singapore and Vietnam, connecting quality Chinese and global enterprises with capital markets [10]. - The company aims to leverage strategic opportunities from the Belt and Road Initiative and Greater Bay Area development to drive sustainable growth [24]. - The company has not made significant changes to its main business activities, which include brokerage, corporate finance, asset management, and financial products [139]. Financial Performance - The company's revenue for 2022 was HKD 2,314,917,000, a decrease of 42% compared to HKD 3,966,415,000 in 2021 [58]. - Net profit attributable to ordinary shareholders fell by 93% to HKD 80,381,000 from HKD 1,094,743,000 in the previous year [58]. - Total revenue from commission and fee income decreased by 47% to HKD 866 million, primarily due to a 68% drop in IPO financing and a 25% decline in trading volume [71]. - Interest income fell by 17% to HKD 1.897 billion, attributed to deepening default risks in mainland property bonds [71]. - The institutional investor segment's revenue decreased by 18% to HKD 1.33 billion, mainly due to lower fees from financial products [72]. Risk Management and Compliance - The company emphasizes risk management as a core competitive advantage, integrating risk management culture into daily operations [12]. - The company has implemented effective risk management measures, including reducing exposure and hedging strategies, to navigate the volatile market environment [29]. - The company recognizes the geopolitical risks affecting global financial markets but anticipates that China's economy will demonstrate resilience despite challenges such as a weak real estate market and pandemic impacts [86]. - The company has established a zero-tolerance policy towards bribery and corruption, enhancing its anti-bribery and anti-corruption framework with independent policies introduced in 2022 and 2023 [119][120]. - The company is committed to complying with capital regulations across its licensed subsidiaries in various jurisdictions, ensuring support for new business development needs [82]. Corporate Governance - The board consists of 8 directors, including 2 executive directors, 3 non-executive directors, and 3 independent non-executive directors, ensuring high independence for objective decision-making [92]. - The company adheres to the Corporate Governance Code and has complied with all principles and provisions throughout 2022 [90]. - The board has established effective mechanisms to maintain high independence, with over one-third of the board being independent non-executive directors, exceeding the minimum requirements of the Listing Rules [95]. - The company has a policy for the appointment and re-election of directors, requiring shareholder approval for any appointments [96]. - The board includes experienced executives with over 30 years in the securities industry, enhancing governance and strategic oversight [133]. ESG Initiatives - The company continues to focus on ESG initiatives, having been included in the FTSE ESG Index and receiving an upgraded rating from MSCI ESG rating agency [24]. - The company has committed to enhancing its governance and compliance standards while promoting green finance initiatives [24]. - The company has adopted climate change-related policies and conducted climate risk assessments in 2022 [175]. - The ESG Committee has proposed the adoption of a climate change policy and approved the next year's environmental goals and community investment plans [118]. - The company actively manages risks related to environmental, social, and governance (ESG) factors to create sustainable value for stakeholders [175]. Shareholder Engagement and Dividends - The company proposed a total dividend of HKD 0.050 per share for the year, with a payout ratio of 594% [66]. - The company aims to distribute dividends amounting to no less than 30% of the profit attributable to shareholders, with the previous cap of 50% removed to allow for flexibility based on economic conditions [125]. - The company emphasizes effective communication with shareholders through various channels, including its website and social media platforms [127]. - Shareholders can submit inquiries to the board via written communication, with contact details provided for ease of access [131]. - The company has established procedures for shareholders to nominate directors, promoting transparency and participation [130]. Market Position and Recognition - The company has established a strong presence in the Greater Bay Area, recognized as the best private equity investment institution in January 2022 [15]. - The company has been awarded multiple accolades, including the Best Financial Stock Company and Best ESG Award in January 2022 [15]. - The company has been recognized as the most respected company in the banking and non-banking financial sector in Asia, highlighting its strong reputation [18]. - The company maintained a leading market position among Chinese securities firms listed in Hong Kong, receiving the "Most Respected Company" award for the second consecutive year from Institutional Investor magazine [23]. - The company's market capitalization remains the highest among Hong Kong-listed brokers, with 45 awards received during the year, a 32% increase year-on-year [70]. Internal Controls and Audit - The company has established various committees, including the Audit Committee, Remuneration Committee, Nomination Committee, Risk Committee, and ESG Committee, each with distinct roles [105]. - The audit committee reviewed the 2021 annual performance and 2022 interim performance, recommending approval of the financial statements to the board [110]. - The independent internal audit team plays a crucial role in providing objective assurance to the board regarding the effectiveness of the internal control system [112]. - The company has implemented internal controls and pricing policies for related party transactions, ensuring compliance with relevant regulations [169]. - The directors are responsible for preparing consolidated financial statements that provide a true and fair view in accordance with HKFRSs [200].

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 - For the six months ended June 30, 2022, the company's revenue was HKD 1,088,506,000, a decrease of 56% compared to HKD 2,451,549,000 in the same period of 2021[4]. - The profit attributable to ordinary shareholders was HKD 161,251,000, down 83% from HKD 937,604,000 year-on-year, but up 3% from the previous half-year[8]. - Total revenue from commission-based income decreased by 54% to HKD 451 million, primarily due to a 91% drop in financing amounts for IPOs in Hong Kong[14]. - Interest income fell by 27% to HKD 925 million, attributed to a weak market environment and reduced investor financing demand[14]. - Operating profit for the period was HKD 381,959, down 74% from HKD 1,476,056 in the previous year[54]. - Profit for the period attributable to owners of the parent was HKD 161,251, a decline of 83% from HKD 937,604 in the same period last year[54]. - The company reported a significant increase in accounts receivable, which rose to HKD 10,928,121 from HKD 6,559,681 year-over-year[55]. - The total comprehensive income for the period was HKD 120,654, down from HKD 925,139 in the same period last year[54]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.01 per share, with a payout ratio of 60%, and a special dividend of HKD 0.03 per share, totaling HKD 0.04 per share, which is a threefold increase compared to the previous year's final dividend[8]. - The interim dividend declared was approximately HKD 95,878,000 or HKD 0.01 per ordinary share, down from HKD 480,069,000 or HKD 0.05 per share in 2021, reflecting an 80% decrease[90]. - The board approved the removal of the 50% dividend cap and revised the annual dividend target to not less than 30% of the profit attributable to shareholders[27]. Assets and Liabilities - Total assets increased by 5% to HKD 111,528,906,000, driven by a 37% rise in client-held financial products to HKD 43,400,000,000[9]. - Total liabilities rose by 6% to HKD 96.1 billion as of June 30, 2022, mainly due to a 13% increase in issued debt securities to HKD 51.2 billion[18]. - The group's current assets as of June 30, 2022, were HKD 89.6 billion, a 2% increase from the end of 2021, with cash and cash equivalents at HKD 4.961 billion[21]. - The total number of shares outstanding as of June 30, 2022, was 9,587,755,707[39]. Market Conditions - The company faced a challenging market environment, with the Hang Seng Index dropping 7% in the first half of 2022, reaching a ten-year low of 21,860 points[8]. - The average daily trading volume in the Hong Kong stock market decreased by 27% year-on-year to HKD 138.3 billion[8]. - The total amount raised from initial public offerings in the Hong Kong stock market decreased by 91% year-on-year to approximately HKD 19.7 billion[8]. Cost Management - The financing cost decreased by 43% to HKD 21,100,000, primarily due to effective cost control and reduced exposure to high-risk assets[8]. - The total cost decreased by 32% to HKD 919 million, mainly due to a 43% reduction in financing costs[15]. - Salaries, bonuses, and allowances decreased to HKD 329,951 from HKD 415,070, a decline of approximately 20.5%[84]. Share Repurchase and Options - The company repurchased a total of 58,409,000 shares at a total cost of HKD 51,089,093.05 during the six months ended June 30, 2022[43]. - The stock option plan allows for a maximum of 10% of the issued shares (164,000,000 shares) to be issued upon full exercise of options granted[34]. - The weighted average exercise price of share options outstanding as of June 30, 2022, was HKD 1.557 per share[160]. Financial Instruments and Valuation - As of June 30, 2022, the total financial assets at fair value through profit or loss amounted to HKD 62,520,741,000, an increase of 14.5% from HKD 54,841,297,000 as of December 31, 2021[120]. - The fair value measurement hierarchy includes Level 1, Level 2, and Level 3 inputs, reflecting the Group's comprehensive approach to asset valuation[180]. - The total financial liabilities at fair value through profit or loss were HKD 25,054,631,000, with Level 1 at HKD 69,105,000, Level 2 at HKD 23,012,322,000, and Level 3 at HKD 1,973,204,000[192]. Governance and Compliance - The company has complied with all principles and code provisions of the Corporate Governance Code during the reporting period[41]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial report for the six months ended June 30, 2022[45]. - The interim financial report was prepared in compliance with HKAS 34, ensuring that it reflects the company's financial position accurately[50].

Company Strategy and Transformation - Guotai Junan International maintained strong strategic focus and risk management, achieving performance at the forefront of the industry in 2021[4]. - The company has transformed from a traditional brokerage firm to a diversified financial service provider, with core businesses including brokerage, corporate finance, asset management, and loans[15]. - The company aims to build a "Well Respected, Comprehensively Leading and Internationally Competitive" financial service provider, focusing on stability and long-term goals[5]. - Guotai Junan International's strategy is rooted in Hong Kong while relying on the motherland and serving the global market[5]. - The company plans to enhance wealth management business transformation and upgrade services, focusing on product offerings and investment channels[80]. - The company will explore Southeast Asian markets, leveraging the "Belt and Road" initiative and expanding through subsidiaries in Singapore and Vietnam[81]. - The company emphasizes green finance principles and aims to guide international capital towards green industries[81]. Financial Performance - In 2021, the company's total revenue was HKD 3,966,415,000, a decrease of 18.6% compared to HKD 4,872,952,000 in 2020[28]. - The net income attributable to ordinary shareholders was HKD 1,094,743,000, down 29.9% from HKD 1,562,587,000 in the previous year[28]. - The company's return on equity (ROE) decreased to 7.2%, down 4.6 percentage points from 11.8% in 2020[28]. - The total assets of the company decreased by 12.7% to HKD 106,288,093,000 from HKD 121,720,741,000 in 2020[28]. - The company maintained a stable dividend payout ratio of 53%, with total dividends amounting to HKD 576,259,000, a decrease of 29.3%[28]. - Total revenue decreased by 19% year-on-year to HKD 3.972 billion, primarily due to significant market index declines and a low interest rate environment[47]. - Wealth management segment revenue increased by 26% year-on-year to HKD 1.829 billion, marking a record high for three consecutive years[47]. - The company reported a final dividend of HKD 0.010 per share for the year ended December 31, 2021, down from HKD 0.051 per share in 2020, resulting in a total dividend of HKD 0.060 per share for the year[163]. Risk Management - The company emphasizes risk management as a core competitive advantage, integrating risk management culture into daily operations[16]. - The risk management department is responsible for identifying, assessing, monitoring, and reporting risks associated with the company's business[84]. - The group faces market risk due to fluctuations in market prices affecting the fair value of financial instruments and future cash flows[93]. - The group has established liquidity risk management measures, including diversified funding sources such as bank loans and bond issuance[95]. - The group actively manages operational risk through a comprehensive internal control environment involving all employees[94]. - The company has implemented monitoring measures for lending operations, including real-time monitoring and stress testing[88]. - The company has integrated ESG risk factors into its credit risk management model to help control and avoid ESG-related risks in its business operations[101]. Awards and Recognition - The company has received multiple awards in 2021, including "Best Broker" and "Best Financial Company" from various organizations[21]. - The company received 34 professional awards from 15 authoritative media outlets, a historical high, recognizing achievements in wealth management, ESG, and risk management[46]. Digital Transformation and Technology - The company plans to enhance risk management capabilities and accelerate digital transformation to improve business performance in 2022[23]. - The company’s digital transformation efforts included launching services like "eDDA Quick Deposit" and a remote account opening app, improving customer access to investment opportunities[43]. - Research and development investments increased by 30%, totaling 150 million HKD, aimed at innovative financial solutions[156]. Corporate Governance - The company has adopted all principles and code provisions of the Corporate Governance Code as per the Stock Exchange Listing Rules, with minor exceptions noted[107]. - The board consists of six directors as of December 31, 2021, with two executive directors and four independent non-executive directors, later expanded to nine directors[108]. - The company emphasizes the importance of good corporate governance for effective management, healthy corporate culture, sustainable business growth, and enhancing shareholder value[105]. - The company has established various committees, including the Audit, Remuneration, Nomination, Risk, and ESG Committees, each with distinct roles[122]. Employee Engagement and Development - The company provides competitive compensation packages based on market levels and individual expertise, with annual salary reviews[82]. - The company is committed to creating a learning and development environment for employees, offering training in financial knowledge, compliance, and leadership[82]. - The company employed a total of 691 employees as of December 31, 2021, with a gender ratio of 1.27 males to 1 female[82]. ESG and Sustainability - The company has established an ESG committee authorized by the board to manage sustainability and ESG practices, covering governance, policies, goals, strategies, performance, and reporting[101]. - The group has adopted a new ESG policy and governance framework to address identified ESG risks and set environmental goals for the upcoming year[138]. - The company has integrated ESG practices into its overall business strategy, committing to the United Nations Global Compact's ten principles regarding human rights, labor standards, environment, and anti-corruption[199]. Market Conditions and Challenges - The Hong Kong stock market faced significant challenges in 2021, with the Hang Seng Index and Hang Seng Tech Index declining by 14% and 33% respectively[83]. - The total amount raised through IPOs in Hong Kong decreased by 18% year-on-year to HKD 328.9 billion, with significant contributions from new economy enterprises[38]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[157]. - The company aims to improve customer satisfaction scores by 15% through enhanced service offerings and support systems[156]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[155].