SUN HUNG KAI CO(HK:00086)2021-04-01 08:36Financial Performance - The total assets of Sun Hung Kai Company amounted to approximately HKD 44 billion as of December 31, 2020[4]. - The company achieved a net profit attributable to shareholders of HKD 2,547.7 million, a 22% increase compared to HKD 2,085.2 million in 2019[15]. - Earnings per share rose by 23% to HKD 1.283, up from HKD 1.044 in 2019[15]. - Total revenue for 2020 was HKD 4,056.6 million, a decrease of 3.8% compared to HKD 4,216.8 million in 2019[28]. - The company's attributable profit for 2020 was HKD 2,547.7 million, representing a 22% increase from HKD 2,085.2 million in 2019[31]. - The pre-tax profit increased by 17% to HKD 3,200.6 million, compared to HKD 2,743.4 million in 2019[32]. - The company maintained a strong capital position with a return on equity of 11.8% and a return on assets of 6.8%[15]. - The company's total assets increased by 3.6% to HKD 44,083.2 million, while total liabilities decreased by 4.5% to HKD 18,130.9 million[28]. Investment Management - The investment management division has become a major source of profit, with the company launching its fund management platform in Q1 2021[11]. - Total assets under management exceeded HKD 146 billion, reflecting continuous business expansion in investment management[14]. - The fund management business is anticipated to become a new growth driver for the company, enhancing revenue and asset management scale[13]. - The investment management business saw a significant pre-tax profit increase of 65% to HKD 2,126.4 million, driven by strong performance in public market and alternative investments[32]. - The investment team made significant new investments in sectors such as consumer technology, renewable energy, smart transportation, biotechnology, and medical technology[61]. - The hedge fund investment portfolio achieved a return of 40.6% in 2020, significantly outperforming the Eurekahedge Asia Hedge Fund Index, which grew by 17.5%[64]. - The private equity division reported a total return of 24.7% for the year, with direct investments generating a return of 17.4% and co-investments yielding 23.7%[60]. - The company's alternative investment assets have grown to over HKD 14.6 billion, establishing a diversified portfolio including private equity, hedge funds, credit, and direct market securities[70]. Consumer Finance - The company holds a significant position in the consumer finance market through its subsidiary, Asia United Finance, which offers unsecured loans in Hong Kong and mainland China[9]. - The mortgage loan business, established in 2015, has gained a significant market share in Hong Kong[9]. - The company maintained a stable contribution from consumer finance, with pre-tax profit of HKD 1,238.5 million in 2020, slightly down from HKD 1,276.0 million in 2019[32]. - The total loan balance as of December 31, 2020, was HKD 10,563.7 million, a 1% increase from HKD 10,413.5 million in 2019[33]. - The total loan balance in mainland China increased by 18% to HKD 3,000 million in 2020 from HKD 2,545.1 million in 2019[41]. Corporate Governance - The board of directors held six meetings during the year, discussing overall strategy and financial performance[97]. - The company has established a clear division of responsibilities between the board and management, enhancing operational efficiency[100]. - The board has delegated daily operational responsibilities to management, allowing for focused strategic oversight[100]. - The company maintains a robust communication framework between the board and management, facilitating effective decision-making[102]. - The company emphasizes the importance of independent judgment and rigorous review by encouraging non-executive directors to participate in board meetings[103]. - The board has established multiple committees, including the nomination committee, remuneration committee, audit committee, executive committee, and risk management committee, each with clear written terms of reference[103]. - The company has set up an orderly succession plan for directors, including regular reviews of such plans[104]. Risk Management - The group has implemented a comprehensive risk management framework, regularly reviewed by the board and its risk management committee[78]. - The group continues to monitor emerging risks related to regulatory changes and macroeconomic factors[81]. - The group has established a three-line defense framework for risk management, involving business units, supervisory functions, and internal audit[79]. - The risk management committee held four quarterly meetings in 2020 to assess the nature and extent of significant risks faced by the group[109]. - The group has implemented measures to monitor liquidity risk, credit risk, and market risk, reporting on these to the board[109]. - The company is reviewing its risk management framework and procedures, considering various areas to identify key risks, including business strategy and financial condition[109]. Community Engagement and ESG - The company emphasizes the importance of ESG (Environmental, Social, and Governance) performance management, with the board responsible for setting ESG goals and reviewing performance annually[129]. - The company integrates the United Nations Sustainable Development Goals (SDGs) into its core strategies, focusing on creating value across five key areas: business, investors and customers, employees, community, and environment[127]. - The ESG working committee has been established under the risk management committee to oversee and review the company's operations, ensuring compliance with relevant laws and international standards[129]. - The company has received multiple awards for its ESG efforts, including the Best ESG Company Gold Award from Treasury Magazine for several years[120]. - The company aims to create a positive impact on the planet while developing its business activities, reflecting its commitment to sustainable development[127]. - The company has a zero-tolerance policy towards bribery, fraud, and money laundering, with no complaints or legal cases reported during the reporting period[144]. - The company has implemented a debt relief plan in 2020 to assist customers severely affected by the COVID-19 pandemic, allowing for adjustments in debt repayment plans[151]. Employee Development and Training - The company has implemented an unlimited paid leave policy since 2018 to enhance work-life balance and employee performance[155]. - Total training hours amounted to 34,943.20 hours, with an average of 7.92 hours per employee[189]. - The company emphasizes lifelong learning and provides support for employees to pursue further education and training[159]. - The company received two complaints regarding products and services, and a total of 13 debt collection complaints during the reporting period[152]. - The company has been recognized as a "Good Employer" by Manulife Insurance for over six consecutive years[155]. Environmental Impact - The company aims to further reduce greenhouse gas emissions through measures such as encouraging video conferencing instead of business travel[180]. - The company has implemented various energy-saving measures, including using energy-efficient LED lighting and regular maintenance of appliances[176]. - Total electricity consumption decreased by 8% from 3,767,731 kWh in 2019 to 3,484,277 kWh in 2020[177]. - Water consumption decreased by 19%, from 6,852 m³ in 2019 to 5,556 m³ in 2020[178]. - The company recycled 455 toner cartridges, 12.96 kg of plastic bottles, and 1.60 kg of aluminum cans in 2020[181].