Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 1,893,825,000, compared to HKD 118,760,000 for the same period in 2022, representing a significant increase[2] - Commission and fee income decreased by 31% to HKD 532,256,000 from HKD 774,632,000 year-on-year[2] - Interest income increased by 23% to HKD 772,839,000 from HKD 627,278,000 year-on-year[2] - Net trading and investment income was HKD 588,730,000, a recovery from a loss of HKD 1,283,150,000 in the previous year[2] - The company reported a loss attributable to shareholders of HKD 780,943,000, an improvement from a loss of HKD 1,681,222,000 in the same period last year[4] - Basic and diluted loss per share improved to HKD 11.55 from HKD 25.62 year-on-year[2] - Other comprehensive income for the period was HKD 91,478,000, compared to a loss of HKD 193,669,000 in the previous year[5] - The net loss for the first half of 2023 was HKD 781,000,000, a 54% reduction compared to the same period last year[38] Assets and Liabilities - Total assets rose by 1% to HKD 89,942,131,000 from HKD 89,097,202,000[2] - Total liabilities reached HKD 67,203,895 thousand, a decrease from HKD 68,408,394 thousand, indicating a reduction of 1.76%[6] - The total equity of the company increased to HKD 22,738,236 thousand from HKD 20,688,808 thousand, marking a growth of 9.9%[6] - Cash and cash equivalents increased to HKD 9,695,293 thousand from HKD 5,002,861 thousand, reflecting a significant rise of 93.5%[6] - The company's financing to clients amounted to HKD 12,151,932 thousand, down from HKD 15,048,123 thousand, a decline of 19.2%[6] - The company's total liabilities and equity amounted to HKD 89,942,131 thousand, up from HKD 89,097,202 thousand, indicating a growth of 0.95%[6] Shareholder Information - The number of issued shares increased by 27% to 8,438,024,077 shares due to a rights issue[2] - The weighted average number of ordinary shares outstanding increased to 6,761,421,000 shares for the six months ended June 30, 2023, up from 6,563,224,000 shares in the same period of 2022, reflecting a 3.0% increase[24] - The issued share capital increased to HKD 843,802,000 as of June 30, 2023, from HKD 664,156,000 as of December 31, 2022, due to a rights issue[34] Segment Performance - The wealth management segment reported revenue of HKD 82,532,000 for 2023, down 27.5% from HKD 113,855,000 in 2022[14] - Corporate finance segment revenue decreased by 38.3% to HKD 170,724,000 in 2023 from HKD 277,014,000 in 2022[14] - Asset management segment revenue fell to HKD 96,760,000 in 2023, a decline of 31.5% compared to HKD 141,254,000 in 2022[14] - Global markets segment revenue decreased by 24.9% to HKD 182,240,000 in 2023 from HKD 242,509,000 in 2022[14] - The investment segment reported a loss of HKD 75,704,000 in 2023, compared to a loss of HKD 14,263,000 in 2022[14] - Total consolidated revenue for 2023 was HKD 532,256,000, down 31.2% from HKD 774,632,000 in 2022[14] Risk Management and Impairments - The company recorded an additional impairment provision of HKD 277,000,000 for margin loans during the interim period due to a decrease in the market value of collateral[28] - The company’s management believes that the impairment provisions made during the period and prior years are appropriate[29] - The company’s risk management department is responsible for monitoring credit risk and ensuring strict control over financing balances[28] Corporate Governance - The company is committed to maintaining high standards of corporate governance and has complied with the corporate governance code during the reporting period[48] - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2023, consistent with the previous year[47] - The interim financial results for the six months ended June 30, 2023, have been reviewed by the audit committee, which consists of three non-executive directors, two of whom are independent[49] Market Environment - The average daily trading volume in the Hong Kong securities market decreased by 16% year-on-year in the first half of 2023, reflecting a challenging macroeconomic and geopolitical environment[42] - The global economic outlook remains uncertain, with the UN projecting a growth of 2.3% in 2023 and 2.5% in 2024, below the pre-pandemic average of 3.1%[46]
海通国际(00665) - 2023 - 中期业绩