ASIA FINANCIAL(00662)2024-04-19 08:38Financial Performance - The company reported a significant increase in profit attributable to shareholders, reaching HKD 346.8 million, a growth of 181.5% compared to 2022[7]. - Insurance revenue for the year was HKD 2,456.4 million, representing a 19.0% increase from HKD 2,063.5 million in 2022[6]. - The company experienced a 27.0% decline in insurance operating performance, with a profit of HKD 216.8 million compared to HKD 296.8 million in the previous year[6]. - Basic and diluted earnings per share rose to HKD 37.2, marking an increase of 184.0% from HKD 13.1 in the previous year[6]. - The company reported a 16.9% decrease in dividend income, totaling HKD 173.7 million compared to HKD 209.0 million in 2022[6]. - Earnings per share (EPS) for 2023 was HKD 0.372, reflecting a growth of 184.0% year-on-year[12]. - The total dividend per share for the year is HKD 0.90, which is an increase of 80.0% compared to the previous year[12]. - The total revenue for Asia Financial Group in 2023 reached HKD 2.832 billion, representing a 35.8% increase compared to 2022 and a 254% increase from the baseline year of 2009[68]. - The profit for the year was HKD 346,753,000, compared to HKD 123,198,000 in the previous year, representing a significant increase of 181.5%[165]. Assets and Liabilities - The total assets as of December 31 amounted to HKD 15,035.4 million, a 2.0% increase from HKD 14,734.7 million in 2022[6]. - The company’s total liabilities increased by 11.6% to HKD 4,286.6 million from HKD 3,839.4 million in 2022[6]. - The largest customer accounted for 21% of total revenue, while the top five customers collectively represented 34%[166]. - As of December 31, 2023, the company's distributable cash reserves amounted to HKD 3,227,682,000[164]. - The company's issued share capital decreased due to the cancellation of repurchased shares, resulting in a total of 929,062,000 shares outstanding[163]. Business Strategy and Outlook - The company anticipates continued growth in its insurance business despite economic challenges, supported by improved operational efficiency and a diverse product range[9]. - The company plans to expand its distribution network and enhance product offerings to meet changing market demands[9]. - The company is optimistic about the core insurance business outlook for 2024, expecting continued growth[16]. - The company has strengthened partnerships in the insurance and banking sectors and expanded distribution channels, including online platforms[16]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic partnerships and technological advancements[186]. Investments and Joint Ventures - The company has established two joint ventures with Pan Hua Holdings Group, one in life insurance brokerage and the other in insurtech, holding 40% stakes in each[17]. - The investment in China Life Insurance Company accounts for 14.4% of the group's total assets, with a fair value of HKD 2,170 million and an unrealized loss of HKD 580 million[22]. - The company’s investment in Bangkok Dusit Medical Services increased by 5.6% in HKD terms, with a fair value of HKD 1,893 million, contributing to a realized gain of HKD 101 million[22]. - The company holds a 4.7% stake in Bangkok Dusit Medical Services, which has shown resilience and growth due to its international patient services[19]. Employee and Workforce Management - The total number of employees as of December 31, 2023, is 352, an increase from 329 employees as of December 31, 2022[28]. - The employee turnover rate for Asia Financial Group is 9.0%, which is below the average turnover rate of 21% in Hong Kong for 2023[57]. - The average training hours per employee for Asia Financial Group in 2023 is 17.52 hours, which represents a 19.2% increase from 2022[62]. - The company provides comprehensive medical and retirement benefits to all employees, along with training and onboarding programs[28]. - The company promotes work-life balance by offering paid leave, public holidays, and additional conditional leave[48]. Environmental, Social, and Governance (ESG) Initiatives - The report on environmental, social, and governance (ESG) performance is prepared in accordance with the Hong Kong Stock Exchange's guidelines, ensuring compliance with relevant standards[30]. - The company has identified five significant ESG issues and is actively addressing them, including enhancing cybersecurity measures to protect customer data[36]. - The company continues to upgrade its IT infrastructure to improve operational efficiency and security while achieving ESG objectives[36]. - In 2023, the company signed the Hong Kong Insurance Industry Climate Charter, demonstrating its commitment to addressing climate change risks and enhancing its climate risk analysis capabilities[39]. - The company aims to achieve carbon neutrality by 2050, aligning with Hong Kong's climate action blueprint[65]. Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code for the year ending December 31, 2023, except for a deviation regarding the separation of the roles of Chairman and CEO[102]. - The board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors, ensuring a balance of expertise and experience[105]. - The company is committed to maintaining high standards of corporate governance to enhance investor confidence and protect the interests of stakeholders[102]. - The board has adopted a diversity policy, considering various factors such as gender, age, and professional experience in the appointment of directors[120]. - The company has established mechanisms to ensure board independence, including independent non-executive directors chairing all committees[112]. Risk Management - The company has adopted a risk management policy that covers the group's risk appetite and management framework, including credit risk, cash flow risk, interest rate risk, foreign exchange risk, and operational risk[143]. - The risk committee reviews the effectiveness of the group's risk management system at least once a year, including all significant risks and resources allocated to risk functions[144]. - The company’s internal control systems were assessed for effectiveness, covering financial, operational, and compliance monitoring[136]. - The board confirmed that there were no significant deficiencies in the risk management and internal control systems for the year ending December 31, 2023[145]. Shareholder Engagement - The company maintains effective communication with shareholders through a shareholder communication policy, ensuring timely and accessible information[149]. - The company held its annual general meeting electronically on May 19, 2023, allowing shareholders to vote and ask questions online[150]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within 21 days of the request[151]. - The company ensures compliance with public float requirements as per listing rules throughout the fiscal year 2023[155].