Financial Performance - The company recorded a pre-tax profit of approximately HKD 110 million in 2018, up from HKD 47 million in the previous fiscal year, representing a growth of 134%[7]. - Revenue increased by over 90%, rising from HKD 352 million to HKD 672 million[10]. - The company recorded total revenue of HKD 672 million for the fiscal year 2018, a 43% increase compared to HKD 352 million for the 9-month fiscal year 2017[18]. - Adjusted revenue for the fiscal year 2018 was HKD 690 million, reflecting a 47% increase from HKD 352 million in the previous fiscal year[19]. - The adjusted profit before tax for fiscal year 2018 was approximately HKD 199 million, a significant increase of 218% compared to HKD 47 million in fiscal year 2017[19]. - The company will not recommend a dividend for the year due to anticipated market volatility in 2019[11]. - The company does not recommend distributing any final dividends for the year[20]. - The company reported no interim dividends for the year ending December 31, 2018, consistent with the previous year[179]. - The board has resolved not to recommend a final dividend for the year, mirroring the zero interim dividend from the previous year[180]. Business Strategy and Development - The company plans to reposition its capital market coverage in response to the Greater Bay Area development, collaborating with sister companies to better serve customer needs[12]. - The company aims to enhance its competitiveness in traditional brokerage and interest income, while actively expanding into investment banking, asset management, and wealth management[7]. - The company aims to transform its revenue structure by developing fee-based businesses such as asset management and structured financing[36]. - The asset management division aims to increase managed assets from $214 million to an additional $250 million through the rebranding of Oceanwide Funds SICAV to Global Alliance Partners SICAV and expanding its member network to 14 countries[13]. - The company is focused on leveraging opportunities in the capital markets, especially after experiencing volatility at the end of the year[133]. Market and Economic Conditions - The global economic growth rate for 2018 was projected at 3.7%, with China's GDP growth at 6.6%, meeting the government's target of 6.5%[21]. - The Hang Seng Index experienced a decline of 13.6% in 2018, closing at 25,846 points, after reaching a high of 33,154 points earlier in the year[22]. - In 2018, there were 218 new listed companies in Hong Kong, a 25.3% increase from 174 in 2017[23]. - The total capital raised through equity securities in 2018 was approximately HKD 541.7 billion, a decrease of 6.8% from HKD 581.4 billion in 2017[23]. - The average daily trading volume in the Hong Kong secondary market increased by 21.7% in 2018, reaching HKD 107.4 billion[22]. Risk Management - The company emphasizes rigorous risk management and has reduced high-risk investments to mitigate external economic impacts[7]. - The company has adopted a more rigorous approval process for new margin loans to strengthen risk control[26]. - The group has established credit risk approval policies and management procedures to address potential credit risk increases across six major business areas[44]. - The market risk management department is independent and responsible for setting market risk limits and investment guidelines, with daily monitoring and assessment of market risk conditions[46]. - Operational risks are managed through improved employee risk awareness and internal procedures, with a focus on timely reporting of risk events[48]. Employee and Talent Management - The company is focused on improving employee compensation and benefits to retain key talent and attract new professionals[7]. - Employee costs rose to HKD 165 million in 2018 from HKD 98 million in 2017, representing an average monthly increase of about 26%[32]. - Competitive compensation and benefits are offered to attract and retain talent, with annual salary reviews based on market trends and employee performance[89]. - The company has established a performance evaluation process to recognize employee achievements and identify areas for improvement[94]. - No work-related accidents occurred during the reporting year, highlighting the company's focus on employee health and safety[93]. Environmental, Social, and Governance (ESG) Initiatives - The group plans to establish an environmental, social, and governance (ESG) working group in 2019 to enhance its ESG management[61]. - The company recognizes climate change as a medium to long-term risk and opportunity, committing to reducing its environmental impact[75]. - The total greenhouse gas emissions amounted to 322.8 tons of CO2 equivalent, with Scope 2 emissions (from electricity consumption) accounting for approximately 98% of the total[77]. - The company has implemented energy-saving measures, including replacing traditional bulbs with LED lights and encouraging video conferencing to reduce vehicle use[78]. - The company has established a community investment policy to understand and meet the needs of the local community where it operates[103]. Corporate Governance - The company has received annual independence confirmations from all independent non-executive directors, confirming their independence according to the listing rules[200]. - The company has a zero-tolerance policy towards bribery and corruption, ensuring compliance with relevant laws and regulations[98]. - The company is committed to responsible supply chain management, including regular supplier performance evaluations and risk assessments[99]. - The company has implemented measures to protect customer data and ensure compliance with privacy regulations, with no reported non-compliance issues during the reporting year[102]. Operational Performance - The company completed 6 bond underwriting and placement projects in 2018, marking a breakthrough in merger financing[26]. - The total interest income from interest income business was HKD 447 million in 2018, a significant increase from HKD 94 million in 2017, representing an average monthly income growth of approximately 257%[28]. - The company experienced a loss of HKD 40.34 million from investment and other businesses in 2018, compared to a profit of HKD 16.16 million in 2017, primarily due to fair value losses on a single Chinese broker's H-shares[31]. - The company has not disclosed any significant new product launches or technological developments in the current report[176]. Leadership and Management - The company has a diverse board with members holding advanced degrees in economics and business management, enhancing its strategic decision-making capabilities[152]. - The company’s management team has extensive experience in investment banking and asset management, with key personnel having over 20 years of industry experience[165]. - Zhang Bo has been appointed as the Vice Chairman and Executive Director since February 3, 2017, and holds multiple directorships in various financial institutions[143]. - Lin Jianxing has been with the company since 2001 and currently serves as the Executive Director and CEO, bringing over 30 years of experience in corporate finance and banking[150].
华富建业金融(00952) - 2018 - 年度财报