云锋金融(00376) - 2022 - 年度财报

Financial Performance - The Group's revenue for the year amounted to HK$9,461 million, representing an increase of 11$8,521 million in 2021[9]. - Premiums and fee income contributed HK$9,428 million, an increase of 11$8,479 million in the previous year[9]. - The adjusted operating profit was approximately HK$934 million, reflecting a 14$818 million in 2021[9]. - The consolidated loss for the year was HK$111 million, compared to a profit of HK$793 million in 2021[9]. - The net loss attributable to equity shareholders was HK$256 million, a decline from a profit of HK$513 million in the prior year[9]. - The decrease in net profit was primarily due to investment losses resulting from adverse market conditions[9]. - Total income from premiums and fee income increased by 11% to HK$9,428 million in 2022 from HK$8,479 million in 2021[12]. - The total operating profit for the year was HK$934 million, an increase of 14$818 million in 2021[19]. - Total premium and fee income for 2022 was HK$11,446 million, an increase from HK$11,147 million in 2021, representing a growth of 2.7%[32]. - Premium and fee income recognized in the income statements under HKFRS was HK$9,430 million, up from HK$8,480 million in 2021, reflecting a growth of 11.2%[32]. - Operating profit grew by 6% to HK$1,054 million in 2022, while profit after taxation declined by 22$705 million[52]. - The net investment and other income decreased by 38% to HK$3,128 million in 2022 from HK$5,018 million in 2021[47]. - The net policyholders benefit decreased by 48% to HK$1,306 million in 2022 from HK$2,506 million in 2021[47]. - The change in future policyholder benefits increased by 8% to HK$5,846 million in 2022 from HK$5,409 million in 2021[47]. Revenue Sources and Business Strategy - The Group's sources of revenue include life insurance premium income and various financial services such as management fees and brokerage commissions[9]. - The Group actively pursued opportunities to broaden revenue streams and enhance shareholder value during the recovery phase[8]. - The Group aims for sustainable development and breakthroughs in its business amidst the current market conditions[8]. - The insurance division maintained a diversified product suite, including four flagship products aimed at various customer needs[24]. - The insurance division plans to expand its brokerage and agency intermediary distribution channels to reach more sophisticated customers[26]. - The company aims to establish new partnerships with banks and financial institutions for its bancassurance distribution channel[26]. - The insurance division is exploring a re-formulation of its overall strategy for online sales channels[26]. - The company plans to expand its brokerage distribution channel to cater to high-end customers who prefer independent advice[28]. - The bancassurance distribution channel aims to establish new partnerships with banks and financial institutions to enhance market penetration[29]. - The company is focused on developing innovative products and enhancing the "product + service" concept to provide comprehensive solutions for customers[29]. - Technology empowerment is a core concept, with plans to improve information capabilities and leverage digital platforms for operational efficiency[29]. Assets and Liabilities - Total assets rose by 4% to HK$102,870 million as of December 31, 2022, up from HK$98,474 million in 2021[13]. - Total equity decreased by 26% to HK$14,794 million in 2022 from HK$19,891 million in 2021, primarily due to fair value changes and impairment losses on investment assets[21]. - Total liabilities increased to HK$88.863 billion in 2022 from HK$73.339 billion in 2021, representing a growth of about 21.3%[58]. - The total available capital as of December 31, 2022, was HK$6.603 billion, down from HK$7.293 billion in 2021[70]. Risk Management - The Group actively identified and managed key risks, including strategic, insurance, market, credit, foreign exchange, and operational risks[79][80][85][87]. - The insurance risk management includes pre-launch reviews of new products to mitigate product design risk and regular studies of persistency experience to manage lapse risk[81][89]. - The Group is committed to enhancing its integration with financial technology to create value for all customers, while managing the associated risks[80][85]. Corporate Governance - The Company has adopted and complied with the applicable code provisions of the Corporate Governance Code during the year[170]. - The Board comprises a balance of skills, experience, and diversity appropriate to the Group's business requirements[175]. - The Company maintains at least one-third of the Board members as independent non-executive Directors, ensuring independent judgment in decision-making[175]. - All independent non-executive Directors have confirmed their independence in accordance with the Listing Rules for the year ended December 31, 2022[176]. - The Board meets regularly, holding at least 4 meetings per year, with a total of 4 Board meetings and 1 general meeting held during the year[180]. - The Company has adopted a Board Diversity Policy in 2022 to enhance the effectiveness of the Board and support corporate strategies[187]. - All Directors received training on corporate governance and regulatory development during the year[186]. - The Company ensures that one-third of the Directors retire by rotation at least once every three years, as per its articles of association[179]. - The roles of the Chairman and CEO are distinct, with the Chairman focusing on Board leadership and the CEO managing day-to-day operations[178]. - The Company emphasizes the importance of Board diversity, considering factors such as professional qualifications, gender, and cultural background[188]. Leadership and Management - Mr. Huang Xin was appointed as interim CEO in September 2022, previously serving as executive director since November 2015[150]. - Mr. Huang has extensive experience in finance, having worked at General Electric from 1997 to 2005 and held various leadership roles in investment firms[150]. - The company has a significant focus on strategic management in the insurance sector, with key personnel having backgrounds in actuarial science and financial consulting[160]. - The leadership team has a diverse educational background, with degrees from prestigious institutions such as Fudan University and the Wharton School of Business[156]. - The company is positioned for future growth through strategic investments and market expansion initiatives led by experienced executives[157]. Employee and Operational Metrics - As of December 31, 2022, the Group employed 603 full-time employees, a decrease of 25.9% from 814 in 2021, with 522 in Hong Kong, 39 in Macao, and 42 in the People's Republic of China[100]. - The tied agency force consisted of approximately 3,204 agents as of December 31, 2022, down from 3,462 in 2021[25]. - The number of tied agents in Hong Kong decreased to 2,250 from 2,423 in 2021, a reduction of about 7.1%[66]. - The number of MDRT qualifiers decreased to 275 in 2022 from 324 in 2021, a decline of approximately 15.1%[66]. Embedded Value and Financial Metrics - YF Life's Embedded Value (EV) as of December 31, 2022, is a key metric reflecting the value of shareholders' interests in the earnings from in-force business[114]. - The Adjusted Net Worth (ANW) represents the net asset value on a Hong Kong statutory basis, with marked-to-market adjustments to certain assets of the insurance business segment[115]. - The Value of In-force Business (VIF) before Cost of Capital (CoC) is the present value of future estimated after-tax statutory profits from in-force business, discounted at the risk discount rate as of December 31, 2022[115]. - The New Business Value before cost of capital for the past 12 months is HK$893 million, with a cost of capital of HK$135 million, resulting in a New Business Value after cost of capital of HK$758 million[126]. - The expected return on Embedded Value for 2022 is HK$1,565 million, compared to HK$1,360 million in 2021, indicating a growth of 15.1%[128].