亚洲金融(00662) - 2020 - 中期财报

Financial Performance - For the six months ended June 30, 2020, the company reported a loss of HKD 29.9 million, a decrease of 112.2% compared to a profit of HKD 244.6 million in the same period of 2019[9]. - The company reported a loss attributable to shareholders of HKD 29.9 million, representing a decrease of 112.2% compared to the same period last year[28]. - The loss per share was HKD 0.031, down 112.3% year-on-year[28]. - The interim dividend declared is HKD 0.01 per share, a decrease of 71.4% from HKD 0.035 in the previous year[29]. - Total revenue for the six months ended June 30, 2020, was HKD 953.378 million, an increase of 1.0% from HKD 940.421 million in the same period last year[31]. - The net insurance premium income was HKD 525.409 million, compared to HKD 484.581 million in the previous year, reflecting an increase of 8.4%[31]. - The underwriting profit for the period was HKD 63.399 million, down 15.0% from HKD 74.549 million in the previous year[31]. - The pre-tax loss was HKD 21.084 million, compared to a profit of HKD 261.297 million in the same period last year[32]. - The total comprehensive loss for the period was HKD 1,216.649 million, compared to a comprehensive income of HKD 241.660 million in the previous year[33]. - The company incurred a tax expense of HKD 7.060 million, compared to HKD 16.178 million in the previous year[32]. Economic Environment - The global economic downturn is projected to decline by 6% according to the OECD, with Hong Kong's GDP experiencing a negative growth of 9% and an unemployment rate rising to 6.5%[10]. - The Hang Seng Index fell by 13.3% in the first half of 2020, while the H-share index decreased by 12.6%[10]. - The economic downturn triggered by the COVID-19 pandemic has impacted the company's investment asset valuations and investment effectiveness[81]. Investment Strategy - The company aims to maintain a prudent investment strategy amidst geopolitical risks and economic uncertainties[11]. - The company has adopted a cautious investment portfolio management approach in response to uncertainties brought by the pandemic[81]. - The company’s investment foundation is solid, with expectations to benefit from long-term economic and social development trends[11]. - The company has not implemented any foreign exchange hedging policies but monitors foreign exchange positions and may consider hedging significant foreign exchange risks as needed[88]. Operational Performance - The company maintained stable underwriting profits despite the economic turmoil caused by the COVID-19 pandemic, with operational expenses controlled to align with inflation rates[9]. - Despite the pandemic's impact, Asia Insurance's revenue increased by 1.4%, indicating strong service and customer trust[13]. - The underwriting profit decreased by 14.1% due to prior year claims and increased insurance reserves for business expansion[13]. - The investment portfolio experienced realized and unrealized losses due to historic market weakness caused by the pandemic[13]. Assets and Liabilities - As of June 30, 2020, total assets amounted to HKD 13,604,166,000, a decrease from HKD 14,857,973,000 as of December 31, 2019, representing a decline of approximately 8.4%[34]. - The company's total equity decreased to HKD 9,043,046,000 from HKD 10,323,180,000, reflecting a reduction of about 12.4% year-over-year[35]. - The total liabilities rose to HKD 4,561,120,000 from HKD 4,534,793,000, reflecting a slight increase of 0.6%[35]. - The company’s insurance contract liabilities increased to HKD 3,835,344,000 from HKD 3,603,464,000, marking an increase of about 6.4%[35]. Shareholder Information - As of June 30, 2020, the group’s major shareholder, Cosmos Investments Inc., holds 569,999,712 shares, representing approximately 59.42% of the issued share capital[99]. - Claremont Capital Holdings Ltd, a significant shareholder, holds 566,069,712 shares, accounting for 59.01% of the issued share capital[99]. - The group has a policy of diversifying risks through reinsurance arrangements to limit exposure to catastrophic losses[89]. Risk Management - The company has established policies to identify, assess, monitor, and control various risks associated with its business, including credit risk, liquidity risk, and interest rate risk[81]. - The group faces significant risks related to actual claims and payouts potentially exceeding the insurance liabilities' book value[89]. - The group monitors market risk through trading limits and loss limits, reviewed regularly by the investment committee[92]. Corporate Governance - The company has complied with the Corporate Governance Code as per the Listing Rules during the reporting period[105]. - The company did not comply with Listing Rule 3.21 regarding the composition of the audit committee but corrected this by ensuring it consists solely of non-executive directors[105].