Financial Performance - Total revenue for the first half of 2022 was HK$331.9 million, a decline of 53.1% compared to HK$707.8 million in the same period of 2021[8]. - Management fees dropped by 38.8% to HK$307.3 million from HK$501.9 million year-on-year[8]. - Performance fees plummeted by 99.0% to HK$0.9 million, down from HK$91.3 million in the previous year[8]. - The company reported an operating loss of HK$44.9 million for the first half of 2022, compared to a profit of HK$193.4 million in the same period of 2021, marking a 123.2% decline[8]. - The loss attributable to shareholders was HK$428.6 million, a significant drop of 304.3% from a profit of HK$209.8 million in the previous year[8]. - Basic and diluted loss per share was HK$23.2, compared to earnings of HK$11.3 per share in the same period last year, reflecting a decrease of 305.3% and 307.1% respectively[8]. - For the six months ended June 30, 2022, the net revenue was HKD 219.45 million, a decrease of 50.7% from HKD 444.26 million in the same period of 2021[45]. - The company reported a net loss attributable to owners for the six months ended June 30, 2022, was HKD 428,588,000, compared to a profit of HKD 209,818,000 in the same period of 2021[68]. Asset Management - Total assets under management decreased by 25.4% to $7.49 billion as of June 30, 2022, down from $10.04 billion at the end of 2021[7]. - The company's asset management scale in mainland China was $630 million, accounting for approximately 8.4% of the total asset management scale as of June 30, 2022[15]. - The average managed assets for the first half of 2022 were HK$11.492 billion, reflecting a decrease from HK$11.489 billion in the previous half[23]. - Institutional clients accounted for 59% of total managed assets, a slight decrease from 60% as of December 31, 2021, while retail investors represented 41%[26]. - The proportion of managed assets from European clients increased to 14% from 12% year-on-year, while Hong Kong clients remained the largest group at 62%[26]. Market Environment - The MSCI China Index fell by 11.3% and the MSCI All Country Asia (ex-Japan) Index declined by 16.3% during the first half of 2022, indicating a challenging market environment[10]. - The company maintains a cautiously optimistic outlook for the Chinese and Asian markets, supported by China's counter-cyclical growth policies[19]. Cost Management - The company continues to implement strict cost control measures, with fixed operating expenses slightly increasing by 6% to HK$168 million from HK$159 million year-on-year[11]. - The company continues to adopt a cautious approach to cost management while investing in key strategic growth areas to enhance competitive advantages[34]. Product Development and Innovation - The company aims to expand its product offerings and enhance client coverage despite the challenging market conditions[10]. - The company continues to innovate and expand its product offerings, with plans to launch additional strategies covering fixed income, multi-asset, and ESG themes[12]. - A new ESG product is planned for launch in the second half of the year, following the successful introduction of a China-themed strategy in Japan[18]. Business Expansion - The company is exploring new business developments in mainland China, including seeking full or majority control of public fund management licenses[15]. - The company continues to expand its business in Southeast Asia, actively seeking to grow its customer base in this rapidly growing market[16]. - The company has noted an increase in investment interest from sovereign wealth funds in the EMEA region regarding its expertise in Chinese equities[16]. Employee and Management Changes - The company has strengthened its distribution and sales capabilities by appointing new senior management, including a new CEO and regional distribution heads[13]. - The company aims to enhance its client collaboration and coverage through the recruitment of experienced senior management personnel[13]. - The company employed a total of 164 staff in Hong Kong, a decrease from 177 staff a year earlier, while the number of employees in Shanghai increased from 39 to 43[120]. Shareholder and Governance - The company has established an audit committee consisting of three independent non-executive directors to review accounting principles and financial reporting matters[122]. - The company has adopted the corporate governance code principles as outlined in the listing rules and has been compliant as of June 30, 2022[124]. - The company expressed gratitude to shareholders, business partners, distributors, and customers for their support and acknowledged the contributions of its dedicated employees[127].
惠理集团(00806) - 2022 - 中期财报