Financial Performance - Total revenue for the year was HKD 4,105.9 million, a decrease of 50% from HKD 8,205.4 million in the previous year[6]. - Operating profit (excluding other income/losses) was HKD 360.3 million, down 72% from HKD 1,308.5 million in the previous year[7]. - Profit attributable to owners of the company was HKD 457.8 million, a decline of 67% compared to HKD 1,379.5 million in the previous year[7]. - Total assets amounted to HKD 5,670.3 million, a decrease of 10% from HKD 6,298.8 million in the previous year[7]. - Net asset value totaled HKD 5,264.8 million, down 3% from HKD 5,418.0 million in the previous year[7]. - Assets under management were HKD 10,037 million, a decline of 29% from HKD 14,166 million in the previous year[7]. - Basic earnings per share were HKD 0.247, a decrease of 67% from HKD 0.744 in the previous year[7]. - The net profit for the year 2021 reached HKD 457.8 million, with basic earnings per share of HKD 0.247, compared to HKD 1.379 billion in 2020[38]. - The total assets under management decreased from USD 14.2 billion to USD 10 billion by the end of 2021 due to significant redemptions in high-yield bonds[38]. - The company maintained a dividend payout of HKD 0.08 per share despite the challenging market conditions[38]. - The final dividend per share was HKD 8.0, down 69.2% from HKD 26.0 in 2020[62]. - The company’s net profit attributable to shareholders fell by 66.8% to HKD 457.8 million due to reduced performance fees and overall income decline[44]. Awards and Recognition - The company received four significant awards at three renowned annual award events in 2021[8]. - The company received the "Best Fund Institution - Multi-Asset Investment" award at the 2022 Asset Management Awards, highlighting its strong position in the multi-asset investment space[15]. - The company was recognized as the "Best Foreign Sole Proprietorship Award (China)" in the 2021 Best of the Best Awards by Asian Asset Management, showcasing its strong reputation in the market[15]. - The Asia Equity and Bond Income Fund was awarded "Best Fund Institution - Multi-Asset Investment" by Asian Private Banker in 2021[46]. - The company has received over 200 professional awards since its establishment in 1993, highlighting its recognition in the asset management industry[75]. Investment Strategies and Products - The company has maintained its commitment to value investment principles across various asset classes[3]. - The flagship stock product, the Value Fund, has consistently outperformed its peer group funds across different market cycles[26]. - The Asia Bond Fund, established in November 2017, has demonstrated excellent performance with a dynamic asset allocation strategy aimed at capturing growth potential in Asian assets[27]. - The Asia Equity and Bond Income Fund has gained significant market recognition, reflecting the investment team's efforts and performance results since its inception in November 2019[15]. - The company’s flagship Value Fund is one of the products under the mutual recognition scheme between mainland China and Hong Kong, promoting and distributing through mainland agents[15]. - The company’s pharmaceutical industry fund employs a "whole China" investment strategy, flexibly covering Hong Kong stocks, A-shares, and US-listed Chinese stocks since its establishment in April 2015[15]. - The company’s high-yield stock fund has nearly two decades of investment track record, focusing on financially sound companies with strong profit growth and cash flow in the Asian region[26]. - The flagship Value Fund experienced a decline of 6.6% in 2021, while the Hang Seng Index and MSCI China Index fell by 12.3% and 21.7% respectively[38]. - The Asia Equity and Bond Income Fund achieved a full-year increase of 3.3% in 2021, with assets under management growing from $87.3 million at the end of 2020 to $347 million[46]. Market Presence and Expansion - The company operates offices in major financial hubs including Hong Kong, Shanghai, Shenzhen, Kuala Lumpur, Singapore, and London[3]. - The company has established a strong presence in the Chinese market, having set up an office in Shanghai twelve years ago, positioning itself as a leader in Chinese investments[40]. - The company is actively expanding its retail distribution network in mainland China, collaborating with banks and third-party online platforms[49]. - The group launched a new ESG-themed product in Japan, which has gained significant interest from local investors, increasing Japan's share of total assets under management from 3% in 2020 to 6% in 2021[51]. - The Greater Bay Area Cross-Boundary Wealth Management Connect plan allows over 80 million residents to directly invest in Hong Kong wealth management products, providing a competitive advantage for the group[49]. Employee and Corporate Governance - The company has a strong leadership team with senior investment directors having over 24 and 32 years of experience in asset management[78]. - The management team is led by Co-Chairmen and Co-Chief Investment Officers, who have extensive experience in asset management and investment research[75][77]. - The board includes independent non-executive directors with extensive backgrounds in finance and academia, enhancing corporate governance[80][81][82]. - The company emphasizes the importance of maintaining good relationships with employees, customers, and business partners for sustainable development[119]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, with no violations reported during the year[124]. - The company has established a mandatory provident fund scheme for eligible employees, with contributions based on a certain percentage of their basic salary[115]. - The company has established a zero-tolerance policy towards harassment and discrimination in the workplace, promoting a diverse and inclusive environment[198]. - The company emphasizes competitive compensation and benefits to retain talent, aligning long-term interests with performance recognition[194]. ESG Commitment and Initiatives - The company emphasizes its commitment to Environmental, Social, and Governance (ESG) factors in its investment processes, led by a dedicated ESG investment head[85]. - The company has established a dedicated ESG (Environmental, Social, and Governance) investment team consisting of two members, focusing on responsible investment policies and ESG assessments[159]. - The company signed the United Nations Principles for Responsible Investment, formalizing its commitment to responsible investment practices[158]. - The company has integrated ESG analysis into its investment process since 2019, enhancing its risk assessment framework and commitment to sustainable returns[169]. - The company actively engages with investee companies to promote sustainable practices and improve ESG transparency[182]. - The company has implemented a zero-tolerance policy towards corruption and money laundering, ensuring all employees adhere to a code of conduct[187]. - The company plans to enhance its environmental, social, and governance (ESG) strategies, including tracking ESG developments and increasing engagement with investment targets[186]. Risk Management and Compliance - The company has established a risk management framework based on a "three lines of defense" model to coordinate risk management activities[144]. - The board confirmed its responsibility to oversee the group's risk management and internal control systems, reviewing their effectiveness at least annually[142]. - The internal audit conducted a review of the effectiveness of the group's risk management and internal control systems, focusing on financial, operational, and compliance monitoring, with no significant deficiencies found[149]. - The company has established a whistleblowing mechanism to protect employees reporting suspicious misconduct[188]. - The company has implemented various measures to address the COVID-19 pandemic, including forming a response team[158]. Community Engagement and Social Responsibility - The company donated HKD 500,000 to Wuhan's Leishenshan Hospital and supported various charitable activities, contributing over HKD 500,000 to charities in Hong Kong and Malaysia[158]. - The company has been promoting industry talent development through internship programs and sponsorships with local universities and financial organizations[158]. - The company has established a recreational committee to organize social activities, internal events, volunteer services, sports activities, and annual dinners[200].
惠理集团(00806) - 2021 - 年度财报