Financial Performance - In 2022, the company's revenue decreased by 54.4% to HKD 584.5 million from HKD 1,281.6 million in 2021[8] - The company reported a loss attributable to shareholders of HKD 544.3 million in 2022, a decline of 218.9% compared to a profit of HKD 457.8 million in 2021[8] - Total assets as of December 31, 2022, were HKD 4,747.9 million, down 16.3% from HKD 5,670.3 million in 2021[8] - The company's total liabilities decreased by 37.4% to HKD 253.7 million in 2022 from HKD 405.5 million in 2021[8] - The net asset value totaled HKD 4,494.2 million in 2022, a decrease of 14.6% from HKD 5,264.8 million in 2021[8] - The basic loss per share for 2022 was HKD (29.6), compared to earnings of HKD 24.7 per share in 2021, marking a decline of 219.8%[8] - The company’s operating loss (excluding other income/loss) was HKD (68.6) million in 2022, a significant drop from a profit of HKD 360.3 million in 2021[8] - In 2022, the company reported a net loss of HKD 544 million, marking its first significant annual loss since its establishment in 1993, primarily due to an investment loss of HKD 317.7 million[32] - The company's operating loss, excluding proprietary investments, was approximately HKD 69 million in 2022, contrasting with a net profit of HKD 458 million in 2021[32] - The company maintained a strong financial position with net assets of approximately HKD 4.5 billion and zero debt, allowing it to navigate the recent losses confidently[32] Investment Performance - The flagship fund, the company's Value Fund, experienced a decline of 28% in 2022, while the Hang Seng Index and MSCI China Index fell by 13% and 22%, respectively[33] - As of January 31, 2023, the Value Fund recorded a significant rebound with a net return of 46% over the preceding three months[33] - The company anticipates potential market recovery in China as COVID-19 restrictions may ease earlier than expected, which could positively impact investment opportunities[11] - The International Monetary Fund forecasts a growth rate of 5.2% for China in 2023, compared to 1.4% for the US and 0.7% for Europe, indicating potential for investment growth in the Chinese market[35] - The overall performance of managed funds saw a decline, with a weighted average return of -23.1% for 2022, including a drop of 18.9% for the High Dividend Stock Fund and 28.1% for the Value Fund[64] Asset Management - Assets under management fell by 38.8% to USD 6,145 million in 2022 from USD 10,037 million in 2021[8] - The asset management scale as of December 31, 2022, was $6.1 billion, a decrease of 39% from $10 billion at the end of 2021[43] - Total management fees for 2022 decreased to HKD 549.3 million, a year-on-year decline of 41%[43] - Despite market volatility and net outflows, the company successfully secured a total subscription amount of $1 billion during the year[43] - Institutional clients accounted for 57% of total AUM, a decrease from 60% in the previous year, while retail investors represented 43%, up from 40%[69] Strategic Initiatives - The company launched the EMQQ Emerging Markets Internet and E-commerce ETF on July 25, 2022, listed on the Hong Kong Stock Exchange[26] - In December 2022, the company introduced its first asset management application in Hong Kong, allowing investors to view their portfolios and invest in various mutual funds[27] - The company continues to expand its business in the Chinese market, focusing on institutional clients and private fund managers, with plans to obtain a public fund management license[51] - The company is expanding its institutional business in North Asia and EMEA regions, with key appointments to strengthen management capabilities[44] - The company plans to introduce more innovative investment solutions to meet the evolving needs of local and global investors[60] Corporate Governance - The company has a commitment to maintaining high standards of corporate governance and transparency in its operations[107] - The Group's board includes independent non-executive directors with significant experience in finance and management, enhancing governance[107][110] - The company has established clear responsibilities for its committees, including the audit and remuneration committees, to enhance corporate governance[196] - The company has complied with the corporate governance code as stipulated by the Hong Kong Stock Exchange throughout the year 2022[184] - The independent non-executive directors confirmed their independence in accordance with listing rules, ensuring no significant relationships with the company[192] Employee and Management - Fixed salaries and employee benefits increased by 3.9% to HKD 254.4 million in 2022, compared to HKD 244.8 million in 2021[86] - The total bonus for 2022 was HKD 51.8 million, down from HKD 108.1 million in 2021[86] - The company maintains a commitment to providing a fair and safe working environment, competitive compensation, and development opportunities for employees[176] - The Group's investment management team is led by experienced professionals with a strong track record in research and portfolio management[101][102] - The company has a robust investment management team, with members holding advanced degrees from prestigious universities such as the University of Chicago and Cornell University[115][117] Shareholder Actions - The company proposed a dividend of HKD 0.034 per share for 2022, reflecting confidence in its future prospects despite the losses[32] - The company did not declare an interim dividend for 2022, and the final dividend per share was reduced to HKD 3.4 from HKD 8.0 in 2021, a decrease of 57.5%[72] - The company repurchased shares worth HKD 58 million in 2022, accounting for 1.3% of the issued shares[32] - The board believes that the share repurchase reflects confidence in the company's long-term business prospects and benefits shareholders[171] - The company reported a final dividend of HKD 0.034 per share for the year ended December 31, 2022, pending shareholder approval at the annual general meeting[133] Risk Management - The company has a strong risk management framework led by its Chief Risk Officer, Mr. Sun Zhijian, who has over 25 years of experience in the field[130] - The company emphasizes the importance of compliance and regulatory knowledge, as demonstrated by Ms. Li Hui Wen, the Chief Compliance Officer, who has extensive experience in asset management and regulatory affairs[123] - There were no reported non-compliance issues with relevant laws and regulations that significantly impacted the group during the year[178] - The audit firm PricewaterhouseCoopers has audited the consolidated financial statements for the year ended December 31, 2022, and is willing to be reappointed[181] - The audit committee conducted four meetings in 2022, with all members present at each meeting, focusing on financial reporting procedures and risk management[196][200]
惠理集团(00806) - 2022 - 年度财报