Financial Performance - Total revenue for the first half of 2021 was HKD 29,274,000, a decrease of 60% compared to HKD 73,087,000 in the same period of 2020[20] - Management fee income decreased by 2% to HKD 28,893,000 from HKD 29,428,000 year-on-year[20] - Performance fee income was zero, down from HKD 43,143,000 in the previous year, indicating a significant decline[20] - Gross profit fell by 62% to HKD 25,990,000 compared to HKD 67,710,000 in the prior year[20] - Operating loss for the period was HKD 8,101,000, a decline of 142% from a profit of HKD 19,383,000 in the same period last year[20] - Total comprehensive loss for the period was HKD 11,214,000, compared to a total comprehensive income of HKD 11,854,000 in the previous year, marking a 195% decline[20] - The adjusted net loss under non-HKFRS was HKD 11,261,000, down 146% from a profit of HKD 24,358,000 in the same period of 2020[20] - Basic and diluted loss per share was HKD 2.82, compared to earnings of HKD 4.26 in the same period last year[20] - The company reported a loss of HK$11.3 million for the six months ended June 30, 2021, compared to a profit of HK$12.8 million for the same period in 2020[30] - The pre-tax loss for the first half of 2021 was HK$9.7 million, compared to a profit of HK$21.7 million in the same period of 2020[31] - The adjusted net loss for the first half of 2021 was HKD 11.3 million, while the adjusted net profit for the same period in 2020 was HKD 24.4 million[82] - The group reported a loss before tax of HKD 9.7 million for the first half of 2021, compared to a profit of HKD 21.7 million in the same period of 2020[75] - The net loss attributable to owners of the company for the six months ended June 30, 2021, was HKD 11,261,000, compared to a profit of HKD 12,790,000 for the same period in 2020[149] - The group incurred a loss before tax of HKD 9,747,000 for the six months ended June 30, 2021, compared to a profit of HKD 21,671,000 in the same period of 2020[147] Asset Management and Growth - The company's asset management scale as of June 30, 2021, was $1,568 million, a 16% increase from $1,357 million as of June 30, 2020[28] - As of June 30, 2021, the company's assets under management (AUM) reached $1,568 million[59] - The AUM for fund tools was $817 million, while managed accounts reached $751 million as of June 30, 2021, compared to $849 million and $508 million respectively a year earlier[84] - The revenue growth is closely tied to the increase in AUM, which reflects the company's strategic focus on asset management[59] - The company has established partnerships with third parties for investment management, further expanding its AUM[59] - The company continues to focus on volatility trading in liquid markets, primarily in index futures, options, and ETFs[7] - The company is focused on expanding its fund management and advisory services, aiming to enhance its market position and operational efficiency[163] Market Conditions and Challenges - The VIX index decreased by approximately 30% during the first half of 2021, from 22.8 to 15.8, indicating a decline in implied volatility[26] - The company's investment strategy faced challenges in the first half of 2021, with performance varying based on market opportunities[27] - The U.S. CPI inflation rate was 5.4% year-on-year as of June 30, 2021, marking the highest level since 2015[91] - The 10-year real yield on U.S. Treasury Inflation-Protected Securities (TIPS) was -0.88% as of June 30, 2021, down from -0.26% at the end of Q1 2020[91] - The company emphasizes the importance of diversifying assets in light of rising inflation and potential market volatility[92] Corporate Governance and Management - The management team has a stable background, with key personnel having worked together for nearly a decade[9] - The company welcomed three experienced senior professionals to its team, including a new Global CFO and a new Managing Director[31] - The board consists of four executive directors and three independent non-executive directors as of the report date[142] - The company has adopted the corporate governance code and confirmed compliance by all directors for the six months ending June 30, 2021[140] - The company will continue to review its corporate governance practices to ensure compliance with the corporate governance code[140] Operational Adjustments and Digital Engagement - The company actively engaged with investors and potential clients through webinars and other digital platforms during the ongoing Covid-19 pandemic[30] - The company successfully adapted to challenges posed by Covid-19 by expanding digital content and utilizing technology for communication with global investors[86] - The company continues to engage with investors through various digital platforms and third-party events despite challenges in traditional due diligence processes[87] Shareholder Structure and Equity - True Partner Capital Holding has significant shareholdings, with Ralph Paul Johan van Put holding 58,337,399 shares, representing 14.58% of the equity[120] - The company has a notable concentration of ownership, with the top four shareholders collectively holding approximately 55.3% of the total shares[120] - The company has a diverse shareholder base, including significant stakes held by family members of executives, reflecting potential alignment of interests[128] - The total number of shares held by major shareholders indicates a stable ownership structure, which may contribute to long-term strategic planning[126] Future Plans and Investments - The company plans to expand operations in Hong Kong, Amsterdam, London, and Chicago, having hired 6 new employees for compliance, risk management, accounting, trading, and IT[101] - The company is in the process of obtaining an investment company license from the Dutch Authority for the Financial Markets, aiming to expand its business in Europe and Asia[88] - The enhancement of the company's IT systems and sales and marketing efforts are progressing as expected, although COVID-19 has impacted the plans[102] - The company anticipates using the remaining net proceeds as originally planned, despite the current market conditions[102] Financial Metrics and Cash Flow - The group reported cash and cash equivalents of HKD 187,672,000 as of June 30, 2021, slightly down from HKD 188,589,000 as of December 31, 2020[151] - The group’s equity decreased to HKD 218,650,000 as of June 30, 2021, from HKD 236,703,000 as of December 31, 2020[153] - For the six months ended June 30, 2021, the company reported a net cash inflow from operating activities of HKD 9,994,000, a decrease of 31.5% compared to HKD 14,647,000 for the same period in 2020[159] - The company incurred tax expenses of HKD 1,349,000 for the six months ended June 30, 2021, compared to HKD 8,495,000 for the same period in 2020[181]
TRUE PARTNER(08657) - 2021 - 中期财报