ASIA FINANCIAL(HK:00662)2023-09-11 08:47Financial Performance - The company recorded a profit attributable to shareholders of HKD 299.7 million for the first half of 2023, representing a robust increase of 494.0% compared to the same period in 2022[8]. - The company reported a total comprehensive income of HKD 136.00 million for the period, compared to a loss of HKD 159.47 million in the previous year[34]. - The company's profit attributable to shareholders for the six months ended June 30, 2023, was HKD 299.97 million, representing a 494.0% increase compared to the previous year[26]. - Earnings per share for the same period was HKD 0.321, up 494.4% year-on-year[26]. - The interim dividend declared was HKD 0.04 per share, an increase of 166.7% from HKD 0.015 in the previous year[27]. - The operating profit before tax for the period was HKD 338.71 million, significantly up from HKD 84.30 million in the previous year[30]. - The company reported a total revenue of HKD 10,423,754,000 for the six months ended June 30, 2023, compared to HKD 10,792,066,000 in the same period last year, reflecting a decrease of approximately 3.4%[37]. - The net profit for the period was HKD 50,458,000, compared to HKD 299,724,000 for the same period in 2022, indicating a significant decrease in profitability[59]. Insurance Business - The insurance service performance showed satisfactory results, contributing significantly to the overall positive performance of the group[8]. - Asia Insurance recorded a profit of HKD 256.2 million in the first half of 2023, an increase of 109.5% compared to the same period in 2022[13]. - Insurance revenue for Asia Insurance grew by 21.5% year-on-year in the first half of 2023, reflecting strong performance in medical, life, and property insurance sectors[13]. - Total insurance revenue for the six months ended June 30, 2023, was HKD 1,244.43 million, compared to HKD 1,023.94 million in the same period last year[29]. - The total insurance revenue was reported to be over 90% derived from operations in Hong Kong, Macau, and mainland China, highlighting the company's regional focus[55]. Economic Outlook - The global economic growth forecast for 2023 is projected to decline to 2.8%, down from 3.4% in the previous year, with Hong Kong's GDP growth expected at 3.5%[9]. - The company remains optimistic about the outlook for the second half of 2023, anticipating a continued upward trend in the global economy despite ongoing volatility[11]. - The company reported a significant improvement in the Hong Kong economy in the first half of the year, driven by a strong recovery in inbound tourism and domestic demand[9]. Strategic Initiatives - The company aims to achieve record growth for the sixth consecutive year in its insurance business, focusing on expanding distribution channels and improving operational efficiency[11]. - The company plans to continue developing services in insurance, retirement protection, healthcare, and real estate, with a focus on Hong Kong, Macau, and mainland China[11]. - The company emphasizes the importance of enhancing distribution capabilities and expanding product offerings to better meet customer needs[11]. - The company will maintain a conservative long-term strategy while monitoring market conditions and seizing suitable opportunities for growth[8]. Financial Position - The group maintained a cash and bank balance of HKD 2.634 billion as of June 30, 2023, compared to HKD 2.728 billion at the end of 2022[21]. - The group has no bank loans as of June 30, 2023, and maintains a strong liquidity position with no net current liabilities[21]. - The total assets as of June 30, 2023, amounted to HKD 14,708,954, a slight decrease from HKD 14,734,713 as of December 31, 2022[35]. - The company's equity attributable to shareholders increased to HKD 10,979,962 from HKD 10,895,298 year-over-year[35]. - The total liabilities decreased to HKD 3,728,992 from HKD 3,839,415, indicating a reduction of about 2.9%[35]. Shareholder Actions - The company repurchased 5,866,000 shares at a total cost of HKD 19,899,000 during the period, with 5,726,000 shares subsequently cancelled[69]. - The company’s directors believe that the share repurchase is in the best interest of the company and its shareholders, potentially enhancing net asset value per share and/or earnings per share[106]. - The company declared an interim dividend of HKD 0.04 per share for the six months ended June 30, 2023, up from HKD 0.015 per share in 2022, representing a 166.7% increase[58]. Risk Management - The company reported a credit risk management strategy that includes assessing guarantees and long-term business relationships to mitigate potential defaults[86]. - The liquidity risk management policy involves regular monitoring of cash flow and financial instruments' maturity dates to ensure obligations can be met[87]. - The group faces interest rate risk from floating rate instruments affecting cash flow and fixed rate instruments impacting fair value[89]. - The group has not implemented a foreign exchange hedging policy but monitors foreign exchange conditions and may consider hedging for significant risks[90]. - Operational risks are managed through proper documentation of procedures and regular training to minimize human error[93].