Financial Performance - In 2019, China Tonghai International Financial Limited recorded a significant decrease in net profit to HKD 5.35 million, down from HKD 100 million in 2018[10]. - In 2019, the company recorded a revenue of HKD 779 million, a 16% increase from HKD 672 million in 2018[29]. - The company's net profit for 2019 dropped to HKD 5.35 million, a 95% decrease from HKD 100 million in 2018[29]. - Operating expenses increased significantly, with employee costs rising nearly 30% due to direct cost accounting provisions and recruitment for future business development[18]. - The company's pre-tax profit for 2019 was HKD 3.61 million, down 97% from HKD 110 million in 2018[29]. - The overall turnover of China Tonghai Financial increased by 16%, with revenue rising from HKD 209 million in 2018 to HKD 341 million in 2019[17]. - The adjusted revenue for 2019 was HKD 722.86 million, a 5% increase from HKD 689.84 million in 2018[31]. - The adjusted profit before tax for 2019 was approximately HKD 95.72 million, a 52% decrease from HKD 199.25 million in 2018[31]. - The company will not recommend any final dividend for 2019, consistent with the previous year[29]. Market Conditions - The company faced challenges due to macroeconomic factors such as the US-China trade war, Brexit, and local social events, which increased market volatility[10]. - The ongoing COVID-19 pandemic and geopolitical uncertainties continue to pose challenges for the economic environment[14]. - The company anticipates that the "Guangdong-Hong Kong-Macao Greater Bay Area" and "Belt and Road" initiatives will attract more capital into the Hong Kong market, enhancing its financial services[14]. - The total market capitalization of Hong Kong stocks increased by HKD 8.3 trillion or 28% to HKD 38.2 trillion by the end of 2019[26]. - The Hang Seng Index rose by 2,344 points or approximately 9% year-on-year by the end of 2019[26]. Business Strategy and Development - The company has been actively developing various business segments and enhancing risk management while maintaining a low leverage ratio[11]. - The company aims to balance growth and stability while maintaining a cautiously optimistic outlook for 2020[14]. - The company plans to focus on improving economies of scale and cost savings while maintaining business growth and expanding product coverage[18]. - The company plans to continue its brand management philosophy of being a "partner for success" in the financial services industry[14]. - The company aims to maintain stability and continue to play an active role in its operations moving forward into 2020[22]. - The company plans to increase fee-based income by investing more resources in sales and marketing for securities, corporate finance, and asset management, aiming to expand market share and increase business volume[74]. Risk Management - The company has strengthened risk management by provisioning significantly in 2019, focusing on maximizing recoverability on existing problematic loans and reducing future provisioning needs through lower concentration risk and targeting higher quality clients[74]. - The company actively monitors market risk through daily assessments and reports significant risks to senior management to maintain overall market risk within acceptable levels[68]. - The company has established a liquidity management system to ensure sufficient liquid assets to meet any urgent liquidity needs[69]. - The company has established a risk event reporting procedure to ensure timely reporting of all risk events to relevant departments for immediate corrective actions[72]. - The company is committed to complying with stringent regulatory requirements to mitigate potential regulatory risks affecting its business[73]. Awards and Recognition - In 2019, the company received multiple awards, including the "Outstanding Listed Company Award 2019" from Hong Kong Economic Journal for the second consecutive year[12]. - The company received multiple awards in 2019, including the "Excellence Award for Listed Companies 2019" from Hong Kong Economic Journal for the second consecutive year[45]. - China Tonghai Financial was honored as a gold sponsor at the "2019 Hong Kong Corporate Governance Excellence Awards" ceremony, celebrating the 17th anniversary of the Hong Kong Listed Companies Association[186]. - China Tonghai Financial received two awards at the "Financial Services Excellence Awards 2019," including "Excellence in Asset Management" and "Excellence in Multi-Asset Securities Management" for its outstanding achievements[191]. - The company was recognized for the second consecutive year with the "Outstanding Listed Company Award 2019" by Hong Kong Economic Journal, highlighting its exceptional performance[193]. - China Tonghai Financial won the "Corporate Governance Award" at the "Outstanding Listed Enterprises Awards 2019," acknowledging its superior achievements in corporate governance planning over the past year[194]. Employee and Community Engagement - The company expresses gratitude to its employees for their efforts during the past year and aims to create better returns for shareholders and stakeholders[15]. - The company emphasizes employee rights and provides competitive compensation and benefits, ensuring equal opportunities regardless of gender, age, or background[124]. - During the reporting year, the company conducted 13 Mandarin courses to enhance employees' language skills, alongside compliance training and other professional development initiatives[131]. - The company has implemented a community investment policy focusing on charity, education, and community activities, encouraging employee participation in volunteer services[132]. - The company has been recognized as a "Caring Company" by the Hong Kong Council of Social Service for its commitment to community welfare during the reporting year[136]. - The total amount of community investment was HKD 135,000, with 160.5 volunteer hours contributed[171]. Environmental, Social, and Governance (ESG) Initiatives - The company has implemented measures to protect customer privacy, including encryption and multi-layered security protocols to prevent unauthorized access to personal data[101]. - The company has a zero-tolerance policy towards corruption and fraud, with training provided to employees on internal due diligence policies and procedures[108]. - The company has established policies for effective resource use, including energy and water efficiency[173]. - The company is focused on reducing environmental impact through initiatives such as electronic brochures and providing non-disposable utensils to employees[141]. - The total greenhouse gas emissions for the reporting year amounted to 508.9 tons of CO2 equivalent, a significant increase from 322.8 tons in the previous year, representing a 57.7% rise[159]. - The company is developing a set of sustainable development goals to address key sustainability issues, which will serve as the basis for setting key performance indicators and targets[92]. - A total of 328 questionnaires were sent out to stakeholders, with 76 valid responses received, leading to the identification of nine significant issues related to environmental, social, and governance matters[95]. - The company has implemented measures to improve energy efficiency, including regular cleaning of filters and considering the use of LED lighting for future renovations[146]. - The company encourages the use of video and telephone conferencing to reduce air emissions from business travel[146].
华富建业金融(00952) - 2019 - 年度财报