Financial Performance - Total revenue for the nine months ended September 30, 2021, was HKD 42,780,000, a decrease of 54% compared to HKD 92,209,000 in the same period of 2020[19] - Management fee income decreased by 5% to HKD 42,399,000 from HKD 44,500,000 year-on-year[19] - Performance fee income was zero, down from HKD 47,193,000 in the previous year, indicating a significant decline in performance-based earnings[19] - Gross profit for the period was HKD 37,938,000, down 55% from HKD 84,426,000 in the prior year[19] - Operating loss for the period was HKD 13,894,000, compared to an operating profit of HKD 21,887,000 in the same period last year, reflecting a 163% decline[19] - The net loss attributable to owners of the company was HKD 18,071,000, a 245% increase from a profit of HKD 12,445,000 in the previous year[19] - Comprehensive loss for the period totaled HKD 18,297,000, compared to a comprehensive income of HKD 11,711,000 in the prior year, marking a 256% decline[19] - Adjusted net loss under non-HKFRS was HKD 18,071,000, down 173% from a profit of HKD 24,789,000 in the previous year[19] - Basic and diluted loss per share was HKD 4.52, compared to earnings of HKD 4.15 in the same period last year[19] Asset Management - As of September 30, 2021, the asset management scale was $1,665 million, an increase of 8% compared to $1,541 million as of September 30, 2020[26] - As of September 30, 2021, the group's assets under management amounted to USD 1,665 million, reflecting a significant increase from USD 1,500 million in 2020[50] - As of September 30, 2021, the asset management scale consisted of $762 million in mixed fund products and $903 million in managed accounts[53] - The increase in asset management scale in Q3 2021 was primarily due to the launch of a new customized tool for an institutional client[29] Market Conditions - The S&P 500 index realized volatility for the first nine months of 2021 was 12.8%, significantly lower than the long-term average of 20.0%[23] - The VIX index at the end of Q3 2021 was similar to its level at the beginning of 2020, indicating stable market conditions[24] - The company's relative value volatility trading strategy faced challenges due to lower realized volatility and declining short-term implied volatility[24] - The nominal yield of U.S. and Eurozone government bonds remained below inflation levels, indicating a challenging environment for traditional investments[81] - The average CPI year-on-year revision by the Cleveland Federal Reserve Bank was 3.5% as of September 30, 2021[82] - The company highlighted the potential for "stagflation" scenarios, where growth slows while inflation persists, posing risks to corporate profit margins[84] Operational Changes - The company has a stable and experienced management team that has worked together for nearly a decade, which may provide a foundation for future recovery[8] - The company's employee count increased in Q3 2021 due to the implementation of its expansion plan outlined in the prospectus[29] - The group actively engaged with investors and potential clients through webinars and industry conferences during the ongoing Covid-19 pandemic[30] - The group welcomed three experienced senior professionals to enhance its team, including a new Global CFO and a new Managing Director[30] - The company is in the process of obtaining an investment company license from the Dutch Authority for the Financial Markets to expand its business in Europe and Asia[30] Strategic Focus - The company remains confident in its investment strategy despite the challenging market conditions faced in 2021[66] - The company believes that past performance does not guarantee future results, but historically strong performance periods have followed challenging times[66] - The company plans to continue its focus on fund management and advisory services, with an emphasis on expanding its trading opportunities globally[136] - The investment strategy focuses on absolute returns, aiming to profit in various market environments, including alternative diversified investment tools like hedge funds and volatility trading[90] - The company anticipates a shift in market demand from bonds to alternative diversified investment tools, adjusting products accordingly to capitalize on this trend[90] Shareholder Information - As of September 30, 2021, major shareholders hold significant stakes in True Partner Capital Holding, with Alset EHome International Inc. owning 62,122,908 shares, representing 15.53%[99] - True Partner Participation Limited and its beneficial owner hold 58,337,399 shares, accounting for 14.58% of the company's equity[99] - The total number of unexercised stock options decreased from 8,997,804 to 7,947,488 between January 1, 2021, and September 30, 2021[112] - The company has not granted any stock options under the stock option plan since its adoption[113] - The company is focused on recognizing and rewarding employee contributions through stock option plans[112]
TRUE PARTNER(08657) - 2021 Q3 - 季度财报