Financial Performance - Total revenue for the first half of 2024 was HKD 235.7 million, a decrease of 14.8% compared to HKD 276.8 million in the same period of 2023[6]. - The total management fees decreased to HKD 200.8 million, down 18.3% from HKD 245.9 million year-on-year[6]. - The company reported a net profit of HKD 37.4 million, a significant increase of 663.3% from HKD 4.9 million in the previous year[6]. - The basic earnings per share rose to HKD 2.0, reflecting a 566.7% increase compared to HKD 0.3 in the same period last year[6]. - The total subscriptions for the first half of 2024 were $465 million, down from $483 million in the second half of 2023, while total redemptions increased to $865 million from $717 million[19]. - The total net return for the first half of 2024 was $298 million, following a positive performance despite the net redemptions[19]. - The company reported a significant increase in profit attributable to shareholders, reaching HKD 37.4 million, up 663.3% from HKD 4.9 million in the previous year[27]. - Total revenue decreased by 14.8% to HKD 235.7 million in the first half of 2024, compared to HKD 276.8 million in the same period of 2023[26]. Asset Management - As of June 30, 2024, the assets under management decreased to $5.402 billion, down 3.6% from $5.6 billion at the end of 2023[9]. - The company continues to maintain a strong balance sheet with a net asset value of HKD 3.6 billion, including cash of HKD 900 million and investments of HKD 2.5 billion[9]. - Institutional clients accounted for 54% of the total AUM, with retail investors making up the remaining 46%[24]. - Hong Kong clients represented 67% of the group's AUM, while European clients increased their share to 14% from 12%[24]. - The group's brand funds contributed 85% to the AUM, with absolute return long-only funds making up 71% of the total[22]. Fund Performance - The flagship fund, Value Partners High Dividend Stock Fund, achieved a return of 11.2% in the first half of 2024[8]. - The overall fund performance, measured by the asset-weighted average return, increased by 6.4%[8]. - The Value Partners High Dividend Stock Fund recorded a return of +11.2% for the first half of 2024, while the Value Partners Greater China High Yield Bond Fund rose by +11.7%[17]. - The group's asset-weighted average return during the review period was 6.4%, outperforming the Hang Seng Index and MSCI China Index, which rose by 6.2% and 4.7%, respectively[19]. Cost Management - Operating expenses were reduced to HKD 147 million, a decrease of 10% from HKD 164 million in the same period last year[9]. - Employee compensation and benefits decreased by 17.0% to HKD 97.7 million compared to HKD 117.7 million in the first half of 2023[33]. - The company’s operating expenses decreased to HKD 160,696,000 from HKD 191,380,000, showing improved cost management[42]. - The company continues to adopt a cautious approach to cost management while investing in key strategic growth areas[34]. Strategic Initiatives - The company has expanded its client coverage in local and overseas markets, particularly enhancing its family wealth management offices in Hong Kong and Singapore[10]. - The company has established a strategic partnership with PT Surya Timur Alam Raya Asset Management in Indonesia to provide equity strategy products, aiming to capture long-term growth potential in Southeast Asia[10]. - The company has launched a Japan Real Estate Fund in April 2024, which is the first and only Japan REITs product authorized by the Hong Kong Securities and Futures Commission[13]. - The company has received positive feedback from institutional clients regarding the Value Partners China A Shares High Dividend Fund, anticipating increased fund inflows[13]. - The company has been granted approval to launch a fixed income product under the Qualified Domestic Limited Partner (QDLP) program, expecting more capital inflows due to declining yields in mainland China[12]. - The company has 18 funds eligible under the new Capital Investor Entry Scheme (CIES) launched in March, which aims to attract potential immigrants and local investment opportunities[11]. - The company has increased its distribution products under the Greater Bay Area Cross-Border Wealth Management Connect (WMC) program from 3 to 9 eligible investment products[11]. ESG and Sustainability - The company has conducted approximately 150 thematic interactions with its portfolio companies on 18 sustainable development themes, a 50% increase compared to 2023[15]. - The company is focused on enhancing its ESG practices, transitioning from "ESG 1.0" to "ESG 2.0" and emphasizing direct engagement with portfolio companies[15]. - The company received five awards at the Bloomberg Businessweek/Chinese Edition "2023 Leading Funds" event, recognizing its investment capabilities[13]. Shareholder Information - A special dividend of HKD 0.5 per share was declared to shareholders in December 2023, paid on January 23, 2024[35]. - The company did not recommend an interim dividend for the six months ended June 30, 2024, compared to no dividend for the same period in 2023[135]. - The company expressed gratitude to shareholders, business partners, distributors, and customers for their support[142]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to review accounting principles and financial reporting[137]. - The company has complied with the corporate governance code as of June 30, 2024, and has made adjustments to its governance practices following the resignation of the CEO[139]. - All directors confirmed compliance with the standard code of conduct for securities trading during the six months ended June 30, 2024[140].
惠理集团(00806) - 2024 - 中期财报