新鸿基公司(00086) - 2024 - 年度财报

Financial Performance - The company reported a profit attributable to shareholders of HK$377.7 million in 2024, a significant turnaround from a loss of HK$471.4 million in 2023[28]. - The return on equity and return on assets increased to 1.8% and 1.5%, respectively, compared to -2.2% and -0.5% in 2023[28]. - Total revenue decreased by 3.9% to HKD 3,762.0 million[40]. - Revenue for 2024 was HKD 3,762.0 million, a decrease of 3.9% from HKD 3,916.6 million in 2023[48]. - Pre-tax profit increased significantly to HKD 861.3 million in 2024, up 1024.4% from HKD 76.6 million in 2023[50]. - Basic earnings per share for 2024 were HKD 19.3 cents, recovering from a loss of HKD 24.1 cents in 2023[50]. - Total investment management revenue reached HKD 394.4 million, a significant recovery from a loss of HKD 332.0 million in 2023[33]. - The pre-tax profit from consumer finance business was HKD 807.3 million, down from HKD 979.5 million in 2023, impacted by a one-time foreign exchange loss of HKD 46.1 million[34]. - The company achieved a pre-tax profit margin increase of 1,024.4%, amounting to HKD 861.3 million[40]. Asset Management - Total assets of the group amounted to approximately HKD 37.3 billion as of December 31, 2024[8]. - Total assets under management reached a record of $2.0 billion, more than doubling from 2023[25]. - The total assets under management reached $2,018 million by the end of 2024, up from $964 million in 2023, reflecting a significant organic growth driven by strong cash inflows and good market performance across almost all strategies[124]. - The composition of assets under management showed a decrease in the company's capital from 37.2% in 2023 to 20.1% in 2024, while external investor capital increased from 62.8% to 79.9%[130]. - Revenue from fees increased by 55.6% year-on-year to $56.5 million in 2024, driven by the significant expansion of assets under management[132]. Investment Strategies - The investment management division has become a significant source of excess returns for the group in the medium to long term[18]. - The company is focusing on alternative investment strategies to capture market misalignments and generate favorable returns[20]. - The alternative investment portfolio generated a return of 2.6%, with hedge fund returns at 10.6% and private equity returns at 1.1%[75]. - The company is leveraging its expertise and resources to transform into a leading alternative investment platform[24]. - The company plans to enhance its fund management platform through new partnerships and expanded distribution networks[136]. Credit and Loan Business - The credit business offers a diversified loan portfolio, including consumer finance and mortgage loans, providing stable returns[15]. - The company launched the SIM credit card in 2023 to meet the demand for quick-response credit solutions[16]. - The mortgage lending division introduced asset management services for residential mortgage portfolios in 2024[17]. - The credit business achieved a pre-tax profit of HKD 846.8 million, a decrease of 4.5% from HKD 886.3 million in 2023[53]. - The total loan balance in Hong Kong reached HKD 9,199.4 million, reflecting a slight increase of 0.8% compared to HKD 9,123.7 million in 2023[63]. Risk Management - The company maintains a diversified funding source to manage market risks effectively[170]. - Key risks identified include strategic risk, credit risk, market risk, liquidity risk, and operational risk, each with specific mitigation measures[170]. - The risk management framework is based on a "three lines of defense" model, ensuring effective oversight and internal controls[161]. - The company has implemented additional monitoring measures, resulting in an overall reduction in risk levels[168]. - Continuous improvement of the electronic risk management system has enhanced data collection and reporting efficiency[168]. Corporate Governance - The board of directors emphasizes high standards of corporate governance to enhance shareholder value[173]. - The company has established a strong compliance culture and has implemented internal policies to regulate its activities[154]. - The board consists of eight male directors and two female directors, meeting gender diversity requirements[192]. - The company has adopted a board diversity policy since September 1, 2013, to improve the overall skills and experience of the board[189]. - The nomination committee is responsible for ensuring a balanced perspective in terms of skills, experience, and diversity in the board composition[196]. Employee and Operational Efficiency - Employee headcount decreased to 978 from 1,087 in 2023, with total employee costs down to HKD 593.2 million from HKD 625.8 million[151]. - The company emphasizes employee well-being, competitive salaries, and career development to attract and retain top talent[153]. - The company plans to enhance operational efficiency by integrating AI tools and streamlining business processes[76]. - The implementation of a scalable and efficient customer relationship management (CRM) system has improved communication with clients and streamlined relationship management processes[121].