Financial Performance - The company reported a significant growth in assets under management, reaching $1.2 billion, an increase of 15% compared to the previous year[23]. - Total revenue for 2020 reached HKD 132,013,000, a 197% increase from HKD 44,478,000 in 2019[26]. - Fund management business revenue grew to HKD 130,747,000, up 200% from HKD 43,584,000 in the previous year[26]. - The adjusted net profit for 2020 was HKD 39,243,000, compared to a loss of HKD 14,261,000 in 2019[30]. - Basic and diluted earnings per share for 2020 were HKD 8.15, recovering from a loss of HKD 7.25 in 2019[26]. - Operating profit for 2020 was HKD 36,838,000, a significant turnaround from a loss of HKD 19,338,000 in 2019[26]. - The pre-tax profit margin for 2020 was 29%, indicating strong operational performance[31]. - The company reported a profit before tax of HKD 38.1 million in 2020, compared to a loss of HKD 20.7 million in 2019[93]. - Adjusted net profit for 2020 was HKD 39.2 million, a turnaround from a loss of HKD 14.3 million in 2019, with adjusted earnings per share of HKD 0.1222[93][96]. - The company recorded a comprehensive income attributable to owners of HKD 25.3 million in 2020, compared to a loss of HKD 22.8 million in 2019[121]. Growth and Expansion - The company anticipates a revenue growth of 10% for the next fiscal year, projecting total revenues to reach $132 million[23]. - New product launches are expected to contribute an additional $20 million in revenue, with a focus on innovative trading technologies[23]. - The company is expanding its market presence in Asia, aiming to increase its client base by 30% in the region over the next two years[23]. - The company plans to expand its product offerings by developing new asset management products tailored for specific clients, leveraging its partnership with Zhejiang Honglanmu Investment Management[38]. - The company aims to enhance its market presence through strategic acquisitions and collaborations in the financial services sector[38]. - The company is expanding its global business, including obtaining an investment company license from the Dutch Authority for the Financial Markets[96]. - The company is pursuing a license to operate as an investment company through the Dutch Financial Markets Authority, with an allocation of HKD 5.4 million, of which HKD 225,000 has been utilized[158]. User Engagement and Metrics - User engagement metrics showed a 25% increase in active accounts, totaling 50,000 users by the end of the reporting period[23]. - User data showed an increase in active users, reaching 1.2 million, which is a 15% increase compared to the previous quarter[186]. Strategic Initiatives - A strategic acquisition of a smaller asset management firm is in progress, which is expected to enhance the company's service offerings and client reach[23]. - A strategic acquisition of a tech startup was completed, valued at $100 million, aimed at enhancing product offerings[190]. - The company has established a partnership with Nanhua Futures, the first listed futures company on the Shanghai Stock Exchange, to enhance its asset management capabilities[38]. - The partnership with Nanhua Futures, a leading futures company in Shanghai, is expected to enhance the company's understanding of the Chinese financial services and fund management market[140]. Technology and Innovation - The company has invested $5 million in research and development for advanced trading algorithms, aiming to improve trading efficiency[23]. - The proprietary trading platform has been enhanced, leading to a 20% increase in transaction speed and efficiency[23]. - The company has focused on improving the stability, resilience, and security of its proprietary technology infrastructure in 2020, which includes enhancements to its core trading systems[144]. - The company is actively exploring opportunities to further strengthen its technological infrastructure and investment expertise to expand its business activities[144]. - The focus on technology and software development is critical for enhancing trading execution and risk management capabilities[177]. Compliance and Governance - The company is committed to maintaining compliance with regulatory standards, ensuring transparency and accountability in its operations[23]. - The company emphasizes the importance of risk management, with a focus on identifying and mitigating business risks[193]. - Edward Joseph Donnellan III has over 45 years of experience in the financial services industry, serving as the Chief Compliance Officer since July 2017[198]. - No regulatory reviews or investigations were conducted on the company's registered and licensed asset management firm in 2020, indicating a strong compliance framework[147]. Market Conditions and Economic Outlook - The International Monetary Fund (IMF) estimated a global real GDP decline of 3.5% in 2020, with China being the only major economy to record positive growth at 2.3%[105]. - The MSCI World Index closed the year up 14.3%, while the S&P 500 total return index increased by 18.4%[105]. - The VIX index rose from 13.8 at the end of 2019 to 22.8 at the end of 2020, indicating increased market volatility[108]. - The company believes that the lack of diversification in bonds during market downturns may present opportunities for other asset classes[107]. - The company acknowledges that the stock and bond markets are currently facing opposing forces, increasing the urgency for investors to reassess their investment portfolios[154]. Financial Metrics and Ratios - The group had a current ratio of 7.54 times, indicating a strong liquidity position[164]. - The group's net cash balance as of December 31, 2020, was higher than its net debt, indicating a strong capital structure[164]. - General and administrative expenses rose from HKD 49.7 million in 2019 to HKD 70.2 million in 2020, reflecting a 41% increase[121]. Leadership and Team - The management team has a stable background, with key personnel having worked together for nearly a decade, ensuring continuity and expertise[23]. - The company has a strong leadership team with extensive experience in proprietary trading and quantitative research, including over 22 years of experience from Hekster and 17 years from Heijboer[174][173]. - The technology director, van Bakel, has over 18 years of experience in trading technology development, previously working with Sfiss Financial Technology B.V. and Saen Options[177]. - The leadership team has a strong academic background, with multiple members holding advanced degrees in finance and related fields from reputable universities[178][183].
TRUE PARTNER(08657) - 2020 - 年度财报