Financial Performance - The company achieved operating revenue of HKD 1,011.05 million for the fiscal year ending December 31, 2018, an increase of 9.0% compared to HKD 927.72 million in 2017[22]. - Net profit after tax for the year was HKD 143.80 million, a decrease of 5.9% from HKD 152.83 million in the previous year[22]. - Commission and fee income from brokerage services amounted to HKD 212.49 million, up 16.6% from HKD 182.23 million in 2017[9]. - Corporate finance service commission and advisory fee income increased by 71.4% to HKD 211.33 million from HKD 123.29 million[9]. - Interest income from loan and financing services rose by 37.9% to HKD 428.17 million compared to HKD 310.52 million in 2017[9]. - The net profit margin for the year was 14.2%, down from 16.5% in 2017, reflecting a 13.9% decline[16]. - The return on equity (ROE) was 3.3%, a decrease from 3.5% in the previous year[16]. - Pre-tax profit increased by 12.6% to HKD 200.55 million in 2018, compared to HKD 178.09 million in 2017[31]. - Client commission and fee income rose to HKD 443.05 million, accounting for 43.8% of total revenue, up from 34.3% in 2017[31]. - Interest income increased to HKD 433.14 million, representing 42.8% of total revenue, compared to 33.5% in 2017[31]. - Investment income and net gains recorded HKD 134.86 million, which is a significant decrease of 54.9% from HKD 298.76 million in 2017, accounting for 13.3% of total revenue[31]. Assets and Liabilities - Total assets as of December 31, 2018, were HKD 23,343.84 million, representing a 36.9% increase from HKD 17,053.78 million in 2017[16]. - The company's equity attributable to owners was HKD 4,391.07 million, a slight decrease of 0.1% from HKD 4,397.27 million[16]. - The total liabilities increased by 49.7% to HKD 18,952.77 million as of December 31, 2018, compared to HKD 12,656.51 million in 2017[52]. - The net cash inflow for the year ended December 31, 2018, was HKD 335.86 million, up from HKD 208.48 million in 2017[53]. - The group’s net current assets increased by 73.5% to HKD 7,571.08 million as of December 31, 2018, compared to HKD 4,363.02 million in 2017[53]. Dividends and Shareholder Returns - The company declared a dividend of HKD 0.023 per share, down 23.3% from HKD 0.03 per share in 2017[9]. - The company reported a final dividend of HKD 0.023 per share for the year ended December 31, 2018, to be paid on June 5, 2019[103]. - The company aims to enhance shareholder value with a proposed dividend increase of 12% in the next quarter[83]. Business Strategy and Growth - The company plans to focus on internationalization as a key strategy for the next five years, supported by its major shareholder's strategic planning[28]. - The company aims to balance development and risk while pursuing sustainable and high-quality growth to meet diverse client investment needs[29]. - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[83]. - Market expansion efforts include entering two new regions, aiming for a 20% increase in market share within those areas[83]. - The company has completed a strategic acquisition of a smaller firm, expected to enhance its service offerings and increase customer base by 25%[83]. - A new product line is set to launch in Q2 2024, anticipated to contribute an additional $30 million in revenue[83]. Risk Management and Compliance - The group has established a risk management framework to control credit, liquidity, market, and operational risks[68]. - The group has implemented a "Know Your Customer" procedure and credit checks to assess potential clients, particularly in loan and financing operations[69]. - The group has set limits and controls for margin loans and lending based on total and individual loan benchmarks[72]. - The group closely monitors the margin ratios and loan-to-value ratios of its clients to mitigate potential losses[69]. - The group has adopted hedging measures to manage foreign exchange risks primarily arising from transactions denominated in currencies other than HKD[75]. - The group has established a liquidity risk management system to identify and control potential liquidity risks[72]. - The group has implemented policies to monitor and control price risks arising from daily business operations[73]. Corporate Governance - The board of directors includes independent non-executive directors, ensuring compliance with independence standards[112]. - The company has a three-year service contract with its executive directors, which can be terminated with a three-month written notice[121]. - The remuneration for executive directors is determined based on their experience, responsibilities, workload, and contributions to the group[122]. - The company has undergone changes in its board composition, with specific directors being appointed and their remuneration adjusted[118][120][121]. - The audit committee reviewed the audited consolidated financial statements for the year ended December 31, 2018[164]. - The company will propose the appointment of KPMG as the new auditor at the upcoming annual general meeting[165]. - The board of directors is committed to maintaining high standards of corporate governance in the best interests of shareholders[167]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance board effectiveness[178]. Employee and Operational Insights - As of December 31, 2018, the group employed 202 full-time employees, an increase from 165 full-time employees in 2017, with total compensation amounting to HKD 187.04 million, up from HKD 163.56 million in 2017[65]. - The company has implemented cost-cutting measures, resulting in a 5% reduction in operational expenses[83]. - The management team emphasizes a commitment to sustainability, with plans to reduce carbon footprint by 30% over the next five years[83]. Awards and Recognition - The company received multiple awards in 2018, including the "Fastest Growing Mainland Futures Broker" from HKEX and the "Outstanding Wealth Management Institution" from China Securities Journal[27].