Financial Performance - Profit attributable to shareholders for 2020 was HK$ 436,062,000, a decrease from HK$ 571,486,000 in 2019[9]. - Profit before taxation for 2020 was HK$ 472,187,000, down from HK$ 593,585,000 in 2019, with an income tax expense of HK$ 36,125,000[9]. - The company reported a profit before taxation of HK$ 272,087,000 in 2016, which increased to HK$ 610,526,000 in 2018 before declining in subsequent years[9]. - The five-year financial summary indicates a peak profit attributable to shareholders of HK$ 578,090,000 in 2018[9]. - The company has experienced fluctuations in profit over the past five years, with a notable decline in 2020 compared to previous years[9]. - The financial data reflects a consistent growth trend from 2016 to 2018, followed by a decrease in 2019 and 2020[9]. - The income tax expense has varied, with the highest recorded in 2018 at HK$ 32,436,000[9]. - The company’s financial performance indicates a need for strategic adjustments to address the declining profit trend observed in recent years[9]. - The Group recorded a profit after tax of HK$436.06 million in 2020, a decrease of 23.7% compared to HK$571.49 million in 2019[28]. - Basic earnings per share decreased by 23.7% to 73.01 HK cents in 2020[28]. - The Group's financial services business reported a profit after tax of HK$405.99 million in 2020, a decrease of 27.6% compared to HK$560.87 million in 2019[37]. Assets and Liabilities - Total assets increased by 9.1% to HK$8.4 billion at 31 December 2020, compared to HK$7.7 billion at the end of 2019[28]. - The banking business accounted for 72.2% of the Group's total assets as of 31 December 2020[28]. - The net asset value per share was HK$12.7 at 31 December 2020, with approximately 79.9% derived from the investment in Xiamen International Bank[28]. - Total liabilities amounted to HK$807.77 million, representing 10.6% of total equity attributable to shareholders, up from 9.4% in 2019[59]. - The current ratio decreased to 2.4 from 4.1 in 2019, with current assets at HK$1,409.54 million and current liabilities at HK$583.44 million[59]. - Borrowings increased by 13.4% to HK$521.6 million compared to HK$460 million at the end of 2019[59]. Investment and Contributions - Xiamen International Bank contributed about 89.7% of the Group's results in 2020[28]. - The profit after tax of Xiamen International Bank for the Group's reporting purpose decreased by 22% compared to 2019[28]. - The Group's share of results from Xiamen International Bank was HK$444.78 million in 2020, down 22.7% from HK$575.17 million in 2019[28]. - Xiamen International Bank's total assets grew by 3.7% to RMB952.28 billion at 31 December 2020 compared to RMB918.34 billion at the end of 2019[28]. - The Group recognized a loss on dilution of HK$28.75 million due to the dilution of its shareholding in Xiamen International Bank from approximately 9.7635% to 8.8543%[28]. Insurance and Underwriting - Total gross insurance premiums increased by 79.1% to HK$160.86 million in 2020[30]. - Underwriting profit after management expenses for underwriting business was HK$14.35 million in 2020, an increase of 37.8% compared to HK$10.41 million in 2019[30]. - Min Xin Insurance recorded gross insurance premiums of HK$160.86 million in 2020, a 79.1% increase from HK$89.82 million in 2019[50]. - Underwriting profit for Min Xin Insurance increased by 37.8% to HK$14.35 million after deducting management expenses[50]. - Min Xin Insurance achieved a profit after tax of HK$15.49 million in 2020, a significant increase of 349% from HK$3.45 million in 2019[50]. Leadership and Management - Mr. Yan Zheng has been appointed as Executive Director and Chairman of the Board since April 2018, with extensive experience in financial institutions management and corporate management[74]. - Mr. Chen Jie has been appointed as Executive Director and Vice Chairman of the Board since December 2020, holding a Doctor of Management degree and extensive experience in financial capital management[76]. - The Company has a strong leadership team with members holding advanced degrees and extensive experience in finance and management[74][76][79]. - The Company is focused on enhancing its financial management capabilities through experienced executives[76]. - The leadership team includes members who have held significant positions in government and financial institutions, contributing to the Company's strategic direction[76][79]. Corporate Governance - The Company has adopted a Board Diversity Policy to enhance Board effectiveness and corporate governance, considering factors such as gender, age, cultural background, and professional experience[100]. - The Company has complied with all applicable code provisions of the Corporate Governance Code throughout the year ended December 31, 2020, except for the non-specific term of Non-executive Directors[99]. - The Company is committed to maintaining high standards of corporate governance to achieve business objectives and sustainable development[99]. - The Board will continue to monitor and periodically review the Company's corporate governance practices to ensure compliance with the Corporate Governance Code[99]. - The Company has established measurable objectives for its Board Diversity Policy to ensure effectiveness[176]. Risk Management - The Board has adopted a Risk Management Policy covering the Group's risk appetite and management framework at strategic and operational levels, including credit risk, market risk, insurance risk, operational risk, investment risk, and compliance risk[193]. - The Audit Committee reviewed the effectiveness of the Group's risk management and internal control systems, ensuring compliance with the CG Code's provisions[193]. - The risk management and internal control systems are designed to manage risks within an acceptable risk profile rather than eliminate them entirely[193]. - The Group's risk management framework includes measures to monitor and control various risks, ensuring a comprehensive approach to risk management[193]. Shareholder Rights - Shareholders representing at least 2.5% of total voting rights can request the company to issue a notice of resolution for the AGM[200]. - Shareholders must submit their request for resolution at least 6 weeks before the AGM[200]. - The company is required to reimburse reasonable expenses incurred by shareholders due to the failure of directors to convene a meeting[198]. - Any general meeting convened by shareholders must be held within three months from the date of the request[198].
闽信集团(00222) - 2020 - 年度财报