SUN HUNG KAI CO(HK:00086)2019-04-10 09:06Financial Performance - The company's revenue for the year ended December 31, 2018, was HKD 4,176 million, representing a 10.0% increase compared to the previous year[24]. - Profit attributable to shareholders decreased to HKD 1,184 million in 2018, down 35.1% from HKD 1,824 million in 2017[24]. - The group reported a revenue increase of 10% to HKD 4,175.7 million in 2018, driven by growth in various business segments[40]. - The net profit attributable to shareholders for 2018 was HKD 1,610.6 million, down from HKD 2,313.9 million in 2017, reflecting a decrease of approximately 30.4%[186]. - The total comprehensive income for the year was HKD 1,163.3 million, down from HKD 2,786.5 million in 2017, representing a decrease of approximately 58.2%[186]. - The company reported a financial loss of HKD 901.7 million due to financial instrument impairments, with no such losses reported in 2017[186]. - The total assets of Sun Hung Kai & Co. Limited are approximately HKD 41 billion as of December 31, 2018[4]. - Total assets increased by 8.7% to HKD 40,684 million as of December 31, 2018, compared to HKD 37,422 million in 2017[24]. - The company's total equity decreased from HKD 23,398.5 million in 2017 to HKD 22,845.1 million in 2018, a reduction of approximately 2.36%[188]. Loan and Financing Activities - UA Finance reported an annual new loan issuance of HKD 15 billion[17]. - The loan portfolio of Sun Hung Kai Credit exceeded HKD 3 billion in 2018[10]. - The mortgage loan portfolio reached HKD 39 billion by the end of 2018, reflecting the company's strong market position in this sector[30]. - Customer loans and advances totaled HKD 16,109.1 million, reflecting a 12% increase compared to HKD 14,439.0 million in 2017[41]. - The average loan return rate decreased slightly to 31.5% from 32.9%[47]. - New loan amount in Hong Kong increased by 19% to HKD 10,136.3 million, with total loan balance reaching a record high of HKD 78.03 billion[48]. - The company plans to focus more lending resources on second mortgage loans and mortgage credit products to enrich its loan portfolio[57]. Asset Management and Investments - The total value of private equity assets at year-end 2018 was HKD 5,285.8 million, with a return rate of 10.1%[52]. - The overall annual return of the investment portfolio in 2018 was 10.1%, primarily driven by early deployments in the pharmaceutical and technology sectors[54]. - The company holds a 30% stake in Everbright Sun Hung Kai, which reported stable growth in revenue and profit in 2018, managing over HKD 130 billion in client assets[58]. - The company has established a joint venture for auto financing leasing in China, expanding its market presence[10]. - The company has a strong commitment to maintaining high standards of business ethics and corporate accountability[13]. Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance, emphasizing integrity, transparency, accountability, and fairness[78]. - The board of directors consists of a mix of executive and independent non-executive directors, ensuring a balance of expertise and independence[80]. - The company emphasizes compliance with legal regulations governing its business, adhering to the listing rules of the Hong Kong Stock Exchange[69]. - The company has established a robust internal control system to mitigate operational risks, including clear responsibilities and effective reporting mechanisms[70]. - The independent non-executive directors possess appropriate professional qualifications or accounting expertise as required by the listing rules[81]. Employee Engagement and Corporate Social Responsibility - The company has a commitment to sustainable development, with a focus on environmental and social issues, and the board provides comprehensive management and direction on these matters[107]. - The company organized various employee engagement activities, including off-site meetings and team-building events, to foster a positive work environment[108]. - The group made charitable donations totaling approximately HKD 5.2 million, supporting education, healthcare, and poverty alleviation services[120]. - The volunteer team of Asia United Finance had 78 members and contributed 1,056 hours to community service activities in 2018[118]. - The group has established a charity fund focused on supporting poverty alleviation, education, and environmental initiatives[123]. Risk Management and Financial Reporting - The company is responsible for preparing financial statements that are free from material misstatement due to fraud or error[182]. - The governance team is tasked with overseeing the financial reporting process of the group[182]. - The auditor's goal is to obtain reasonable assurance that the financial statements are free from material misstatement[183]. - The company adopted new and revised Hong Kong Financial Reporting Standards (HKFRS) including HKFRS 9 and HKFRS 15, which may impact financial performance and disclosures[192]. - The company recognized an additional credit loss provision of HKD 105.5 million and a deferred tax asset of HKD 28.0 million upon the initial application of HKFRS 9 on January 1, 2018[200]. Shareholder Engagement and Dividends - The company declared a total dividend of HKD 26 per share for 2018, consistent with the previous year[29]. - The board will regularly review and may revise the dividend policy based on operational performance, future earnings, and overall economic conditions[1]. - The company has established a continuous related party transaction framework in compliance with the listing rules, ensuring transactions are conducted on normal commercial terms[159]. - The group reported a total dividend of HKD 0.26 per share for the year, with an interim dividend of HKD 0.12 per share distributed on September 12, 2018, and a second interim dividend of HKD 0.14 per share expected to be sent on June 20, 2019[133].