闽信集团(00222) - 2022 - 年度财报

Financial Assets and Investments - Financial assets at fair value through other comprehensive income increased from HK$805,914,000 in 2021 to HK$606,943,000 in 2022, a decrease of 24.7%[3] - Financial assets at fair value through profit or loss remained stable at HK$742,080,000 in 2022 compared to HK$742,997,000 in 2021[3] - Financial assets at amortised cost increased from HK$966,034,000 in 2021 to HK$1,053,717,000 in 2022, an increase of 9.1%[3] - Investments in associates in Mainland China decreased from HK$6,778,417,000 in 2021 to HK$6,550,270,000 in 2022, a decline of 3.4%[17] - Net realised and unrealised gains on financial assets at fair value through profit or loss increased from HK$14,996,000 in 2021 to HK$17,737,000 in 2022, a rise of 18.3%[19] - Non-current assets increased to HK$7,830,535,000 in 2022 from HK$7,792,705,000 in 2021, driven by growth in financial assets at fair value through other comprehensive income and investment properties[136] - Financial assets at fair value through other comprehensive income declined to HK$606,943,000 in 2022 from HK$805,914,000 in 2021[136] - Investment properties decreased slightly to HK$173,342,000 in 2022 from HK$175,626,000 in 2021[136] Insurance Business - Net earned insurance premiums increased from HK$196,155,000 in 2021 to HK$202,672,000 in 2022, a growth of 3.3%[5] - Net insurance claims incurred for the current year amounted to HK$17.355 million, with reinsurance reducing the net amount to HK$15.898 million[23] - Additional costs for prior years' claims and loss adjustment expenses were HK$29.248 million, with reinsurance reducing the net amount to HK$25.194 million[23] - The increase in claims incurred but not reported was HK$8.833 million, with reinsurance reducing the net amount to HK$7.319 million[23] - The expected cost of claims for unexpired risks increased by HK$55.436 million, with reinsurance reducing the net amount to HK$48.411 million[23] - The risk exposure (total insurance liabilities, net) of Min Xin Insurance at the end of 2022 was HK$203.19 million, a 19.8$169.61 million at the end of 2021[34] - Min Xin Insurance has 16 treaty-reinsurers with credit ratings above A- as of 31 December 2022[36] - Net insurance claims incurred and commission expenses increased to HK$146,781 thousand in 2022 from HK$132,184 thousand in 2021[51] - Insurance contracts under current liabilities increased to HK$154,050,000 in 2022 from HK$121,697,000 in 2021[136] Revenue and Income - Interest income calculated using the effective interest method rose from HK$156,160,000 in 2021 to HK$168,186,000 in 2022, an increase of 7.7%[5] - Revenues from external customers in Hong Kong increased from HK$68,931,000 in 2021 to HK$74,178,000 in 2022, a growth of 7.6%[17] - Total revenues for 2022 were HK$181,309 thousand, a decrease from HK$187,934 thousand in 2021[51] - Operating income for 2022 was HK$215,235 thousand, slightly lower than HK$217,854 thousand in 2021[51] - Profit before taxation for 2022 was HK$461,855 thousand, down from HK$509,973 thousand in 2021[51] - Profit for the year decreased to HK$446,365 thousand in 2022 from HK$495,931 thousand in 2021[134] - Other comprehensive income for 2022 showed a net movement in fair value reserve of HK$(222,565) thousand, compared to a positive HK$444,913 thousand in 2021[134] - Exchange translation reserve recorded a loss of HK$602,256 thousand in 2022, compared to a gain of HK$225,409 thousand in 2021[134] - Total comprehensive income for the year was a loss of HK$390,984 thousand in 2022, compared to a gain of HK$1,176,216 thousand in 2021[134] - Profit for the year decreased from HK$495,931,000 in 2021 to HK$446,365,000 in 2022, a decline of 10%[142] Cash Flow and Financing - Net cash outflow from financing activities in 2022 was HK$225,007 thousand, compared to a net inflow of HK$258,777 thousand in 2021[55] - Bank loans obtained in 2022 amounted to HK$734,721 thousand, an increase from HK$626,496 thousand in 2021[55] - Cash and cash equivalents at the end of 2022 were HK$235,285 thousand, down from HK$466,989 thousand at the end of 2021[55] - Net cash inflow from operating activities rose from HK$28,361,000 in 2021 to HK$42,635,000 in 2022, an increase of 50.3%[145] - Dividends received from associates surged from HK$4,754,000 in 2021 to HK$177,635,000 in 2022, a significant increase of 3,636%[145] - Net cash outflow from investing activities decreased from HK$146,695,000 in 2021 to HK$21,815,000 in 2022, a reduction of 85.1%[145] - Net cash inflow before financing activities improved from a net outflow of HK$118,334,000 in 2021 to a net inflow of HK$20,820,000 in 2022[145] Expenses and Costs - Administrative expenses for 2022 were HK$55,372 thousand, slightly higher than HK$54,903 thousand in 2021[51] - The company's five highest paid employees received a total remuneration of HK$10.722 million in 2022, compared to HK$10.719 million in 2021[82] - The company paid HK$1.88 million to Vigour Fine, its controlling shareholder, for management services in both 2022 and 2021[80] - Gross commissions paid and payable amounted to HK$94,067 thousand in 2022, compared to HK$85,857 thousand in 2021[121] - Net commission expenses for insurance business were HK$89,090 thousand in 2022, up from HK$83,773 thousand in 2021[121] - Commissions received and receivable from reinsurers decreased to HK$4,977 thousand in 2022 from HK$2,084 thousand in 2021[121] - Operating profit for 2022 includes a net exchange loss of HK$27,689 thousand, compared to a net exchange gain of HK$3,644 thousand in 2021[124] - Rental income from investment properties decreased to HK$9,301 thousand in 2022 from HK$9,935 thousand in 2021, with direct outgoings also decreasing to HK$791 thousand from HK$936 thousand[124] - Staff costs, including directors' emoluments, slightly decreased to HK$39,625 thousand in 2022 from HK$39,775 thousand in 2021, with retirement benefit costs increasing to HK$1,567 thousand from HK$1,313 thousand[124] - Auditor's remuneration increased to HK$3,110 thousand in 2022 from HK$2,466 thousand in 2021, with provisions for the current year also increasing to HK$2,772 thousand from HK$2,127 thousand[124] - Depreciation and amortisation expenses decreased to HK$1,978 thousand in 2022 from HK$2,096 thousand in 2021, with property, plant, and equipment depreciation decreasing to HK$1,448 thousand from HK$1,528 thousand[124] Dividends and Shareholder Information - Final dividend for 2022 remained unchanged at HK$71,671 thousand, the same as in 2021[51] - Earnings per share (basic and diluted) for 2022 were 74.74 HK cents, down from 83.03 HK cents in 2021[51] - The company's proposed final dividend for 2022 is subject to shareholder approval at the 2023 AGM, with the register of members closing from 28 June to 30 June 2023[92] - The company's proposed dividend for 2022 remained consistent at HK$71,671,000, the same as in 2021[142] Financial Reporting and Compliance - The consolidated financial statements for 2022 were prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and the Hong Kong Companies Ordinance[97] - The audit of the consolidated financial statements was conducted in accordance with Hong Kong Standards on Auditing (HKSAs)[98] - The directors are responsible for assessing the Group's ability to continue as a going concern and disclosing related matters[110] - The auditor evaluated the appropriateness of accounting policies and the reasonableness of accounting estimates made by the directors[117] - The Group's financial information details are provided in note 17 of the consolidated financial statements[102] - The directors confirmed the independence of all independent non-executive directors as per the Hong Kong Listing Rules[94] - The company's public float has been maintained as required under the Listing Rules during the year and up to the date of the annual report[86] - The company continues to adopt the going concern basis of accounting, expecting adequate resources for operational existence in the foreseeable future[149] - The consolidated financial statements are prepared under the historical cost convention, except for certain assets and liabilities stated at fair value[149] - The Group has adopted amendments to HKFRSs issued by the HKICPA, including improvements to HKFRSs 2018-2020[155][156] - HKFRS 17 Insurance Contracts and related amendments establish principles for recognition, measurement, presentation, and disclosure of insurance contracts, replacing HKFRS 4[168] - Amendments to HKFRS 17 defer the initial application date to annual reporting periods beginning on or after 1 January 2023[168] - Amendments to HKFRS 4 extend the temporary exemption from applying HKFRS 9 to annual reporting periods beginning on or after 1 January 2023[168] - The HKICPA issued amendments to HKFRS 17 in February 2022 to address implementation challenges, particularly regarding comparative information[168] - New standards and amendments issued by the HKICPA are not yet effective for the financial year ending 31 December 2022 and have not been early adopted[166] - Amendments to HKAS 1 regarding the classification of liabilities as current or non-current will be effective for annual periods beginning on or after 1 January 2023[167] - Amendments to HKFRS 16 regarding lease liabilities in sale and leaseback transactions will be effective for annual periods beginning on or after 1 January 2024[167] - The Group adopted HKFRS 17 on 1 January 2023, which brings significant changes to the measurement of insurance contract liabilities and requires greater coordination between finance, actuarial, and IT functions[171] - The Group uses three measurement methods for insurance contracts: the General Measurement Model (GMM), the Variable Fee Approach, and the Premium Allocation Approach (PAA), with PAA being a simplified method for short-term contracts[172] - Under HKFRS 17, the Group measures the time value of money using discount rates that reflect the liquidity characteristics of insurance contracts and cash flow characteristics, consistent with observable market prices[174] - The Group applied the modified retrospective approach for the initial application of HKFRS 17 due to the impracticality of obtaining reasonable and supportable information for estimating fulfilment cash flows[178] - The Group expects to apply the PAA to all insurance contracts issued and reinsurance contracts held, with no significant impact on financial position and performance except for presentation and disclosures[178] - The amendments to HKAS 1 and HKFRS Practice Statement 2 replace "significant accounting policies" with "material accounting policy information," which may influence decisions made by primary users of financial statements[180] - Accounting policy information may be material due to the nature of related transactions, even if the amounts are immaterial[180] - The amendments to HKAS 8 define accounting estimates as "monetary amounts in financial statements that are subject to measurement uncertainty"[184] - The Group uses the acquisition method of accounting for business combinations, with consideration transferred based on fair value of assets, liabilities, and equity interests[186] - Identifiable assets acquired and liabilities assumed in a business combination are measured initially at fair value at the date of acquisition[186] - Changes in the Group's interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions[186] - When the company loses control of a subsidiary, it is accounted for as a disposal of the entire interest, with gains or losses recognized in the consolidated income statement[191] - Any retained interest in a former subsidiary is recognized at fair value upon loss of control, treated as a financial asset or investment in an associate[191] - Intra-group transactions, balances, and unrealized profits are fully eliminated in the preparation of consolidated financial statements[192] - Non-controlling interests are presented separately within equity in the consolidated statement of financial position[194] - Loans from non-controlling interest holders are presented as financial liabilities in the consolidated statement of financial position[194] - Investments in subsidiaries are stated at cost less impairment losses in the company's statement of financial position[194] - An associate is defined as an entity where the company has significant influence but not control or joint control over its management[197] Group Structure and Operations - The Group's banking business accounted for 69.7$0.2 million, Funds: HK$20.3 million, Structured deposits: RMB635.9 million (equivalent to HK$719.8 million)[36] - The Group's internal controls are designed to improve operational efficiency, prevent misuse of assets, maintain proper accounting records, and ensure compliance with relevant laws and regulations[39] - The impact of COVID-19 on the Group in 2022 was limited, with minimal effects on the businesses of Fujian Minxin Investments Co., Ltd. and Sanyuan Micro Credit, and Min Xin Insurance[39] - The company's five largest suppliers accounted for less than 30% of total purchases, and its five largest customers accounted for less than 30% of total revenue in 2022[85] - The company's charitable and community donations amounted to approximately HK$5,000 in both 2022 and 2021[86] - The company's subsidiary, Min Xin Insurance Company Limited, is subject to the Insurance Authority's supervision and must comply with the Insurance Ordinance's gross premium income limit[85] - The company's bank borrowings and loan from the controlling shareholder at 31 December 2022 are detailed in Notes 28 and 29 of the consolidated financial statements[85] - Mr. Huang Wensheng was appointed as Vice Chairman of the Board and Executive Director effective from 28 February 2023[120] Equity and Liabilities - Total equity attributable to shareholders decreased to HK$8,252,100,000 in 2022 from HK$8,714,581,000 in 2021, reflecting a decline in other reserves[139] - Retained profits increased to HK$5,023,449,000 in 2022 from HK$4,713,622,000 in 2021, indicating improved profitability[139] - Non-current liabilities rose to HK$313,939,000 in 2022 from HK$124,973,000 in 2021, mainly due to new bank borrowings[139] - Share capital remained unchanged at HK$1,715,377,000 in both 2022 and 2021[139] - Total equity increased from HK$7,598,091,000 in 2021 to HK$8,714,581,000 in 2022, reflecting a growth of 14.7%[142] - The company's statutory reserve grew from HK$1,004,410,000 in 2021 to HK$1,046,875,000 in 2022, an increase of 4.2%[142] - Retained profits increased from HK$4,370,646,000 in 2021 to HK$4,713,622,000 in 2022, reflecting a growth of 7.8%[142] - The fair value reserve (non-recycling) decreased from HK$583,691,000 in 2021 to HK$373,176,000 in 2022, a decline of 36.1%[142]