Financial Performance - Total revenue for the six months ended June 30, 2022, was HKD 1,001,110,000, a decrease of 39.5% compared to HKD 1,655,987,000 for the same period in 2021[7] - The company reported a net loss attributable to shareholders of HKD 1,681,222,000, compared to a profit of HKD 1,080,525,000 in the previous year, marking a significant decline[7] - Total revenue for the first half of 2022 was HKD 90.1 million, a significant decline of 98% compared to HKD 3.74 billion in the same period of 2021[18] - Commission and fee income fell by 53% to HKD 774.6 million, while interest income decreased by 37% to HKD 627.3 million[18] - The group reported a net trading and investment loss of HKD 1.28 billion, contrasting with a net income of HKD 1.19 billion in the first half of 2021[18] - The group reported a loss before tax of HKD 1,681,222,000 for the period, indicating a challenging financial environment[110] - The company reported a loss attributable to shareholders of HKD 1,681,222,000 for the six months ended June 30, 2022, compared to a profit of HKD 1,080,525,000 in the same period of 2021[121] - Basic loss per share was HKD 25.82, compared to earnings per share of HKD 16.71 in the previous year[92] Revenue Breakdown - The company achieved a total commission and fee income of HKD 243,000,000, a decrease of 3% year-on-year[12] - The wealth management division achieved revenue of HKD 452 million in the first half of 2022, a year-on-year decline of approximately 46% due to decreased trading volume in the Hong Kong stock market and the previous year's higher income from retail and wealth management services[13] - The corporate finance segment's revenue fell by 64% to HKD 287,342, with a pre-tax profit of HKD 55,947, down 87%[42] - The asset management segment's revenue decreased by 48% to HKD 141,254, with a pre-tax profit of HKD 79,376, also down 48%[42] - The global markets segment generated revenue of HKD 586,452, a 29% decrease, but achieved a pre-tax profit of HKD 143,895, down 8%[42] - The investment segment reported a significant loss of HKD 1,998,036, compared to a profit of HKD 375,534 in the same period last year[42] Cost Management - The company’s total cost for the first half of 2022 was HKD 1,506,000,000, a decrease of 32% year-on-year, indicating effective cost management[9] - Total costs decreased by 32% to HKD 1.506 billion, with effective cost control measures contributing to savings across most expense categories[19] - Employee costs decreased by 39% to HKD 546 million, with the number of employees reduced from 1,225 to 1,118[36] - Financial costs amounted to HKD 471 million, a decrease of 24% year-on-year, despite an increase in interest rates during the first half of 2022[19] Asset and Liability Management - Total assets as of June 30, 2022, were HKD 102,279,270,000, down from HKD 104,991,595,000 at the end of 2021[8] - Total liabilities decreased by 1% to HKD 76.6 billion as of June 30, 2022, with reductions in trading financial liabilities[22] - Financing liabilities increased by 9% to HKD 51.2 billion, providing funding support for new investments[22] - Total assets decreased by HKD 2.7 billion or 3% from HKD 105 billion on December 31, 2021, to HKD 102.3 billion on June 30, 2022[60] - Total liabilities decreased by HKD 840 million or 1% from HKD 77.5 billion on December 31, 2021, to HKD 76.6 billion on June 30, 2022[60] Market Conditions and Outlook - The company anticipates continued economic slowdown and high inflation risks in the second half of 2022, with a focus on risk management and asset structure optimization[16] - The Hong Kong stock market index fell by 6.6% year-to-date, with market trading volume decreasing by 27.1%[17] - The group plans to maintain its strategy of reducing leverage and managing risks while exploring sustainable development in core investment banking, asset management, and wealth management businesses[16] Investment and Financing Activities - The company completed 11 equity financing projects in the first half of 2022, ranking third among all investment banks in Hong Kong by project count[10] - The bond issuance team completed 97 bond issuance projects, ranking fourth globally among financial institutions[11] - The company completed 14 green and sustainable bond underwriting projects, with a financing scale of USD 6 billion[11] - The group maintained a strong financial position with a diversified funding strategy, including a successful issuance of USD 5 billion in medium-term notes in the first half of 2022[83] Risk Management and Compliance - The group actively monitors regulatory capital requirements across various jurisdictions to ensure compliance and maintain capital above required levels[81] - The group faced various financial risks, including interest rate risk, currency risk, credit risk, liquidity risk, and price risk, with no significant changes in risk management policies during the period[186] - The company emphasized the importance of independent pricing and verification for fair value measurements[191] Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2022[124] - The company issued 603,778,508 bonus shares on June 23, 2022, affecting the calculation of basic and diluted loss per share for the six-month period[123] - The company’s share capital will increase by issuing an additional 43,817,278 shares if all unexercised stock options are exercised[173]
海通国际(00665) - 2022 - 中期财报