新鸿基公司(00086) - 2020 - 中期财报

Financial Performance - The company's attributable profit decreased by 32% to HKD 695.2 million, with basic earnings per share also down by 32% to HKD 34.9[4] - Total comprehensive income for the period was HKD 688.1 million, down 47.3% from HKD 1,302.2 million in the previous year[95] - The company's profit for the six months ended June 30, 2020, was HKD 862.7 million, a decrease of 31.5% compared to HKD 1,260.4 million for the same period in 2019[93] - Total revenue for the six months was HKD 2,049.6 million, a slight decrease of 2.1% from HKD 2,092.8 million in the same period last year[96] - Interest income decreased to HKD 1,988.0 million, down 1.6% from HKD 2,020.8 million in the previous year[96] - The company reported a net loss from financial instruments of HKD 484.8 million, compared to a loss of HKD 459.9 million in the previous year[96] - The share of profits from associates was HKD 43.2 million, down from HKD 50.3 million in the previous year[96] - The company reported a decrease in revenue from mainland China, reporting HKD 352.2 million compared to HKD 432.8 million in the previous year[112] Assets and Liabilities - Total assets increased by 6% to HKD 42,883.0 million, while total liabilities rose by 8% to HKD 19,295.7 million[4] - The company's total equity increased to HKD 23,587.3 million as of June 30, 2020, compared to HKD 23,576.6 million at the end of 2019, showing a slight growth of 0.05%[98] - The company's total borrowings as of June 30, 2020, amounted to HKD 16,721.5 million, a slight decrease from HKD 16,755.8 million as of December 31, 2019[57] - The net debt decreased by 17% to HKD 9,203.4 million compared to HKD 11,029.6 million in the previous period[56] - The total liabilities decreased from HKD 10,697.5 million to HKD 10,512.2 million, reflecting a reduction of approximately 1.7%[97] Loan and Financing - The total customer loans and advances (net of impairment provisions) amounted to HKD 13,956.6 million as of June 30, 2020, down from HKD 16,060.5 million a year earlier[9] - The net loan balance decreased by 6% to HKD 9,439.8 million, while the total loan balance fell by 5% to HKD 10,122.8 million[10] - The impairment loss increased by 18% to HKD 440.6 million, reflecting the economic impact of the COVID-19 pandemic[10] - The financing business reported a pre-tax profit of HKD 614.3 million, with the consumer finance segment contributing HKD 520.0 million, a decrease of 20% compared to the same period in 2019[10] - The company maintains a cautious loan approval policy and is prepared to adjust strategies as necessary due to ongoing economic uncertainties[18] Dividends and Share Repurchase - The company maintained a mid-term dividend of HKD 12.0 cents per share, unchanged from the previous year[8] - The company repurchased 8 million shares at a total cost of HKD 26.4 million during the period[8] - The company declared an interim dividend of HKD 0.12 per share for the six months ended June 30, 2020, consistent with the previous year[82] - A total of 8,008,000 shares were repurchased during the six months ended June 30, 2020, at a total cost of HKD 26,338,080[88] Operational Efficiency - Operating costs decreased by 14% to HKD 625.6 million, attributed to cost control measures[7] - The operating cost decreased by 7% to HKD (498.5) million, attributed to reduced branch network and operational activities[10] - The total number of employees decreased to 2,248 from 2,318, reflecting ongoing efforts to streamline operations[64] Investment Management - The average asset return for the investment management segment was 4.4% for the six months, contributing a pre-tax profit of HKD 365.9 million, a decrease of 26% compared to HKD 494.7 million in the first half of 2019[27] - The public market investment portfolio had a year-to-date return of -7.0%, with a total value of HKD 3,814.4 million and a loss of HKD 245.6 million[28] - The alternative investment segment accounted for 55.5% of the investment management, with a total value of HKD 7,796.3 million and a return of 11.8%[28] COVID-19 Impact - The group faced challenges from the COVID-19 pandemic, impacting operations and increasing overdue loans in its leasing business[54] - The company implemented various health and safety measures in response to the COVID-19 pandemic starting January 2020[65] - The company has established flexible remote work plans for employees during the pandemic[65] - The group expects a stable recovery in consumer finance as the impact of the pandemic diminishes, although operations will continue in an unpredictable environment[103] Corporate Governance - The company has complied with the corporate governance code as of June 30, 2020, with some deviations noted[78] - The board meets at least four times a year to discuss business and operational matters[79] - The remuneration committee's scope of authority complies with corporate governance codes, focusing on executive directors' compensation[80] Risk Management - The group’s financial risk management framework emphasizes the importance of managing market, credit, and liquidity risks to enhance shareholder value[162] - The group maintains a prudent and ample liquidity ratio, ensuring effective management of cash flows even in adverse market conditions[168] - The group has identified and recorded credit risk and credit loss driving factors for its financial instruments portfolio, applying statistical analysis of historical data to assess the relationship between macroeconomic variables and credit risk[167]