Financial Performance - In 2024, the company reported a loss attributable to shareholders of HKD 1,231 million, compared to a loss of HKD 1,469 million in 2023, indicating a reduction in losses[11]. - Total revenue and other income for 2024 was HKD 613 million, a significant decrease from HKD 1,797 million in 2023[11]. - The company’s total assets decreased to HKD 14,515 million in 2024 from HKD 18,211 million in 2023, reflecting a decline of approximately 20%[15]. - The company’s total liabilities decreased to HKD 13,632 million in 2024 from HKD 16,414 million in 2023, showing a reduction of approximately 17%[15]. - The company’s basic/diluted loss per share for 2024 was HKD 0.66, compared to HKD 0.32 in 2023, indicating a worsening in per-share performance[13]. - The company’s total equity attributable to shareholders was HKD 387,514 million in 2024, down from HKD 1,231 million in 2023[15]. - The company reported a loss of HKD 1,231.4 million for 2024, an improvement from a loss of HKD 1,469.5 million in 2023[21]. - The company’s total revenue for the year ended December 31, 2024, was HKD 387.5 million, down from HKD 613.2 million in 2023[39]. - The operating expenses and financing costs for the year ended December 31, 2024, were HKD 1,622.8 million, a decrease of 23.0% from HKD 2,075.3 million in 2023[40]. Business Operations and Strategy - The company aims to enhance its business product system and expand new revenue streams in 2025, focusing on sustainable development and supporting national strategies[19]. - The company is focusing on strategic transformation and improving internal control management to reduce operational losses and enhance business capabilities[18]. - The company is actively responding to the Hong Kong government's innovation and technology development blueprint, collaborating with Taiping Financial Holdings to manage a USD innovation fund[18]. - The company aims to enhance its financial services by focusing on technology finance, green finance, inclusive finance, pension finance, and digital finance[63]. - The company has been actively involved in various subsidiaries, indicating a strategy of diversification and growth through multiple business avenues[72][74]. Client and Revenue Insights - Commission and fee income from the securities brokerage business reached HKD 91.2 million in 2024, an increase of HKD 9.6 million or 11.7% compared to 2023[23]. - The number of margin accounts increased to 9,741 in 2024, while the interest income from margin loans decreased to HKD 60.1 million, down HKD 49.0 million or 44.9% from 2023[25]. - The average monthly balance of margin loans decreased to HKD 1,067.4 million in 2024 from HKD 1,727.0 million in 2023[26]. - Major clients accounted for less than 30% of total revenue, suggesting a diversified client base[92]. - Major suppliers accounted for less than 30% of total procurement, indicating a stable supply chain[93]. Investments and Financial Assets - The company’s investment fund, the "Jiaoyin International Longteng Core Growth Fund," achieved a return of 17.34%, ranking in the top third of similar products in the Hong Kong market[31]. - The company established 18 QFLP funds and one QDIE fund, with the QFLP funds being the first of their kind set up in Hainan and Qingdao[31]. - The company holds a significant investment in Amber Leading Fund, L.P. with a commitment amount of HKD 232 million, representing 4.92% of Amber's total commitment[57]. - The initial cost of the investment in Amber was HKD 230 million, with a current fair value assessment of HKD 785 million, accounting for 5.4% of the group's total assets[57]. - The investment generated an unrealized gain of HKD 3 million during the year, classified as financial assets measured at fair value through profit or loss[57]. Risk Management and Governance - The company has implemented sufficient internal approval and supervision procedures regarding related party transactions to protect shareholders' interests[111]. - The company has a commitment to maintaining high standards of corporate governance, as evidenced by the diverse backgrounds of its board members[77][78][80]. - The company has established a three-tier risk management framework, including the Board, Risk Management Committee, and relevant middle and back office[180]. - The company is committed to maintaining effective risk management and internal control procedures to monitor and manage key risks[180]. - The board confirmed the effectiveness and adequacy of the group's risk management and internal control systems[184]. Leadership and Management - The company appointed Xie Jie as the CEO and Executive Director in March 2024, succeeding Zhu Chen who served as CEO from July 2022 to March 2024[72]. - Wang Xianjia was promoted to Executive Director and Vice President in December 2023, having previously served as a Non-Executive Director since June 2022[74]. - The company has a strong leadership team with extensive experience in the banking and finance sectors, including key positions held at major financial institutions[72][74]. - The leadership transition aims to strengthen the company's strategic direction and operational efficiency in the competitive financial market[72][74]. - The board's composition reflects a balance of experience and independence, which is crucial for effective decision-making and risk management[77][78][80]. Corporate Social Responsibility and Sustainability - The company is committed to sustainable development and has established an ESG management framework to integrate sustainability into daily operations[135]. - The corporate social responsibility report for the fiscal year 2024 is the eighth report issued by the company, focusing on sustainability and stakeholder concerns[197]. - The reporting scope of the corporate social responsibility report is primarily based in Hong Kong, covering the period from January 1, 2024, to December 31, 2024[198]. - The report was prepared in accordance with the principles of importance, quantification, balance, and consistency as outlined in the Environmental, Social, and Governance Reporting Guidelines[199]. Shareholder Engagement and Communication - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders[189]. - Shareholders can communicate with the board through the company secretary and submit written inquiries at any time[192]. - The company encourages shareholder participation in the annual general meeting, providing opportunities for direct communication with the board[187]. - The company utilizes various communication channels, including its website and investor meetings, to keep shareholders informed[186].
交银国际(03329) - 2024 - 年度财报