Economic Outlook - In 2024, the global economy is expected to show moderate recovery, with the US labor market remaining resilient and consumer demand stable, while inflation may decline slower than anticipated [9]. - The GDP of mainland China grew by 5.0% year-on-year in 2024, supported by strong external demand and inventory replenishment, with exports increasing by 5.9% [6]. - The company anticipates that the economic growth rate in 2025 will remain around 5%, despite short-term pressures on growth [9]. Market Performance - The Hang Seng Index rose by 17.67% in 2024, with the average daily trading volume on the main board reaching HKD 131.8 billion, a 26% increase compared to 2023 [7]. - In 2024, the number of new IPOs in Hong Kong decreased slightly to 67, while total fundraising increased to approximately HKD 87.7 billion, a year-on-year growth of about 102% [7]. - The A-share market saw a decline in new listings, with only 100 new stocks launched in 2024, a decrease of 68.05% year-on-year, raising a total of RMB 67.35 billion, down 81.11% [6]. Financial Performance - In 2024, the group's revenue decreased by 91% year-on-year to HKD 56 million, down from HKD 618 million in 2023 [14]. - The group recorded a loss attributable to shareholders of HKD 161 million in 2024, an improvement from a loss of HKD 192 million in 2023 [14]. - Commission and fee income increased by 3% to HKD 232 million in 2024, compared to HKD 225 million in 2023 [15]. - Interest income decreased by 12% to HKD 239 million in 2024, down from HKD 272 million in 2023 [15]. Business Segments - The wealth management business revenue decreased by approximately 12% year-on-year, with commission and fee income growing by 7% to HKD 70 million in Q4 2024 [19]. - The group achieved a significant turnaround in investment business, reporting a profit of HKD 10,000 in 2024 compared to a loss of HKD 71,000 in 2023 [18]. - Corporate finance business commission and fee income rose by 28% to HKD 90 million in 2024, up from HKD 70 million in 2023 [21]. Strategic Initiatives - The company plans to focus on expanding domestic demand and boosting consumption growth, alongside increasing infrastructure investment to stabilize economic recovery [9]. - The company will continue to optimize its trade layout in response to complex international trade environments and external pressures [9]. - The group aims to enhance its financial service capabilities and optimize its asset-liability structure while accelerating digital transformation [12]. Environmental, Social, and Governance (ESG) Efforts - The company aims to reduce direct greenhouse gas emissions from company vehicles to 12.48 tons, a 15% decrease from the end of 2019 [58]. - Direct greenhouse gas emissions from company vehicles in 2024 were reported at 2.99 tons of CO2, a reduction of approximately 38.85% compared to the previous year [56]. - The total greenhouse gas emissions (Scope 1 and 2) for 2024 were 464.57 tons, down 8.25% from 506.21 tons in 2023 [60]. - The company has identified 18 key ESG issues for 2024, including "Customer Information Security" and "Employee Welfare," which are deemed critical for stakeholders [54]. Employee and Training Metrics - The total number of full-time employees decreased to 256 in 2024 from 283 in 2023, with total employee costs amounting to approximately HKD 233 million, down from HKD 249 million in 2023 [45]. - A total of 196 employees received training in 2024, a decrease of 19% from 242 in 2023 [79]. - The percentage of employees receiving training in 2024 was 12.5%, a slight decrease from 14% in 2023 [79]. Corporate Governance - The company has maintained high levels of corporate governance, adhering to all applicable code provisions under the Hong Kong Stock Exchange Listing Rules for the year ending December 31, 2024 [110]. - The board consists of eight directors, including three executive directors and five non-executive directors, ensuring a balanced composition for independent judgment [116]. - The company emphasizes effective risk and compliance management as part of its core values to create sustainable long-term value for shareholders [111]. Risk Management - The company has implemented a "three lines of defense" model for effective risk management and internal control systems [162]. - The risk management department operates independently from business units to ensure effective monitoring and compliance with policies and procedures [164]. - The company has established a credit risk management framework to monitor customer accounts and ensure compliance with credit policies [175]. Shareholder Engagement - The company has adopted a shareholder communication policy to maintain ongoing dialogue with shareholders, which is regularly reviewed for effectiveness [199]. - Shareholders can propose resolutions at the annual general meeting if they represent at least 2.5% of the voting rights or at least 50 shareholders [198]. - The company has provisions for shareholders to request special general meetings if they hold at least 5% of the voting rights [194].
申万宏源香港(00218) - 2024 - 年度财报