Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 9,569,000, a decrease of 28% compared to HKD 13,289,000 in 2023[15]. - Revenue from fund management activities dropped by 54% to HKD 5,752,000 from HKD 12,398,000[15]. - Consulting service fees increased by 123% to HKD 1,944,000 from HKD 873,000[15]. - Net trading income surged by 10,306% to HKD 1,873,000 from HKD 18,000[15]. - Gross profit decreased by 26% to HKD 8,594,000 from HKD 11,687,000[15]. - Operating loss improved by 27% to HKD (47,962,000) from HKD (65,429,000)[15]. - Annual loss narrowed by 28% to HKD (48,506,000) from HKD (67,001,000)[15]. - Basic and diluted loss per share was HKD (12.13), down from HKD (16.75) in the previous year, representing a 28% improvement[15]. Assets Under Management - The company's assets under management decreased to $501 million as of December 31, 2024, down from $885 million as of December 31, 2023, primarily due to investor portfolio adjustments[25]. - As of December 31, 2024, the company's assets under management totaled $501 million, comprising $43 million from the flagship True Partner Fund and $458 million from managed accounts or similar arrangements[63]. - The AUM for fund instruments was $43 million and for managed accounts was $458 million as of December 31, 2024, compared to $157 million and $728 million respectively as of December 31, 2023[81]. - The average assets under management and average management fees decreased in 2024 compared to 2023 due to the reduction in asset management scale[30]. Strategic Initiatives - True Partner Capital is focused on leveraging proprietary technology and scalable investment platforms to capture growth opportunities in adjacent market segments[9]. - The company launched a new product in collaboration with institutional investors, currently in managed account form, with plans to consider a mixed fund version[28]. - The company is actively seeking additional investors for the newly launched product, which utilizes proprietary quantitative tools[28]. - The company plans to extend the timeline for utilizing the remaining unutilized proceeds from its IPO to December 31, 2025, while maintaining the outlined use of proceeds[31]. - The company is exploring new strategies and potential partnerships to launch products based on these strategies, which could become future revenue sources[77]. Cost Management - The group's general and administrative expenses for 2024 are projected to be HKD 57.9 million, down from HKD 78.3 million in 2023, primarily due to reductions in employee costs and professional fees[31]. - The group has reduced its workforce by 36% and implemented cost-cutting measures, expecting additional benefits from these adjustments over the next twelve months[31]. - The company's general and administrative expenses for 2024 were HKD 57.9 million, down from HKD 78.3 million in 2023, mainly due to reductions in employee costs and professional expenses[77]. Market Conditions - The relative value volatility strategy achieved a positive return of 0.5% in the first half of 2024, despite challenging market conditions[22]. - The annualized volatility for the MSCI World Index was 12.5% in the second half of 2024, up from 8.5% in the first half[22]. - The VIX index decreased from 21.7 to 12.5 in 2023, indicating a significant compression in implied volatility[50]. - In 2024, the VIX index rose from 12.5 to 17.4, reflecting a more challenging market environment[50]. - The macroeconomic environment remains a critical factor influencing investment strategies, with a focus on volatility trading likely to benefit from current conditions[98]. Investor Relations - The team engaged with investors through webinars and in-person meetings, enhancing investor relations and brand visibility[53]. - The group has maintained active communication with investors through webinars and one-on-one online meetings, discussing fund performance and investment outlook[82]. Governance and Management - The company has a stable and experienced management team with key personnel having worked together for nearly a decade[9]. - The company has a strong leadership team with extensive experience in trading and technology, including over 21 years in proprietary trading and quantitative research[185]. - The independent non-executive director has a background in investment management and has founded multiple financial institutions, enhancing the company's strategic oversight[192]. - The company emphasizes the importance of independent oversight through its audit and compensation committees, ensuring transparency and accountability[191]. Future Outlook - The company aims to remain resilient and prepared to capitalize on potential market turnarounds despite current challenges[31]. - The company is optimistic about higher demand for its strategies in the coming year, despite the inherent challenges in market predictions[138]. - The company is developing a strategy to capitalize on the volatility opportunities in Chinese stocks, which are currently trading at a substantial discount compared to other markets[131].
TRUE PARTNER(08657) - 2024 - 年度财报