Corporate Achievements - The Group was invited by NASDAQ to appear on the huge screen in Times Square, New York, becoming the first Hong Kong-funded securities company to achieve this milestone[10]. - The Group sponsored the Bright Smart Securities Hong Kong Squash Championships 2021, the largest squash competition in Hong Kong, to support the sustainable development of the sports industry[12]. - The Group was awarded the Gold Prize under the ESG Rising Star and Silver Prize under Special Awards at the ESG Achievement Awards 2020, affirming its commitment to sustainable development[13]. - BS Securities (Baobao) and BS Futures (Doudou) were recognized as "Excellent Securities and Futures Trading Apps" at the Elite Enterprise Awards, highlighting the Group's innovation in financial technology[14]. - The Group was awarded the Top 20 Partner for trading over one billion CME Group Micro Contracts by the Chicago Mercantile Exchange, demonstrating its strong industry presence[17]. - The Group was granted the Most Popular Brokerage Brand Award by TVB Weekly, reflecting its reputation for professional and reliable services[22]. - The Group won seven awards at the HKEX Awards 2021/2022, marking a historical high and recognition for contributions to Hong Kong's investment markets[28]. - Awards included Top Broker in various categories such as Equity Index Futures & Options and Stock Futures & Options, highlighting the Group's market leadership[38]. - The Group received multiple awards, including "Most Active Stock Futures Broker" and "Outstanding Social Caring Organisation Award," highlighting its industry recognition[71][75]. Employee Engagement and Social Responsibility - The Group provided preferential treatment to all employees, allowing them to subscribe to five lots of iBond 2021 without deposit and interest fees, recognizing their hard work[11]. - The Group distributed bonuses to all employees, with outstanding employees receiving bonuses up to 37 months, and organized a trip to Disneyland for staff[22]. - The Group's performance remained strong despite challenges, with notable contributions from employees recognized through bonuses and rewards[23]. - The Yip Mow Lum Charity Fund donated HK$10 million to the Hospital Authority in 2022, totaling HK$30 million over three years to support COVID-19 efforts[25]. - The Group's commitment to social responsibility was recognized with multiple awards, including the ESG Achievement Awards[38]. - The Group has been actively involved in charitable activities, donating a total of HK$30 million to the Hospital Authority over three years to support medical workers[75][77]. Market Performance and Economic Outlook - Revenue for the year ended March 31, 2022, was HK$1,068.0 million, a decrease of 16.9% from HK$1,285.2 million in 2021[43]. - Profit for the year was HK$561.5 million, down 20.2% from HK$703.9 million in the previous year[44]. - Basic earnings per share decreased to HK$33.08 from HK$41.47, reflecting a decline of 20.2%[43]. - The final dividend per share was reduced to HK$10.00 from HK$13.00, a decrease of 23.1%[43]. - The economic growth forecast for Hong Kong in 2022 was revised down to 2%-3.5% due to pandemic uncertainties, compared to an expected growth of 6.4% in 2021[45]. - The total number of confirmed COVID-19 cases in Hong Kong exceeded 1.2 million, with over 9,200 deaths reported by the end of April 2022[45]. - The International Monetary Fund cut the global economic growth forecast for 2022 to 4.4%, citing risks from the pandemic resurgence[45]. - Supply chain disruptions in Mainland China have led to increased commodity prices and inflation, impacting economic outlook[48]. - Tensions in Sino-US relations and the ongoing Russia-Ukraine conflict are contributing to an unpredictable international economic environment[49]. - The company anticipates that the Mainland economy will remain robust, supported by fiscal and monetary policies despite global challenges[48]. Client Growth and Trading Activity - The total number of client accounts reached 526,849, reflecting a 9.2% increase from 482,413 accounts as of March 31, 2021[56]. - Client assets, including cash and stocks, decreased by 13.1% year on year to approximately HK$64.5 billion, down from approximately HK$74.2 billion[56]. - The number of downloads of the Baobao and Doudou apps rose by approximately 35% compared to the prior year[59]. - The number of accounts opened through Baobao and Doudou apps increased by approximately 20% compared to the prior year[59]. - The number of orders on the Baobao app was approximately 24 million, representing an increase of approximately 50% compared to the prior year[59]. - The total number of orders on all platforms exceeded 31 million, representing an increase of approximately 47.8% compared to the prior year[59]. - The average daily turnover for the fiscal year was approximately HK$147.50 billion, a decrease of 4.9% from HK$155.06 billion in the prior year[104]. - The total turnover of securities on HKEX for the year was HK$36,431.7 billion, a year-on-year decrease of 4.9%[114]. Financial Performance and Revenue Breakdown - Brokerage commission income fell by 13.0% year on year to HK$690.8 million, compared to HK$793.8 million in the previous year[55]. - Interest income from margin lending increased by 20.2% to HK$326.1 million, up from HK$271.2 million in the prior year[55]. - Commission income from the Group's securities brokerage business was HK$437.2 million, accounting for 40.9% of total revenue, a decrease of 15.5% from the previous year[114]. - Revenue from Hong Kong futures and options brokerage increased to HK$125.0 million, up 3.8% from HK$120.4 million in 2021, representing 11.7% of total revenue[118]. - Interest income from margin financing was HK$37.7 million, a significant decrease of 81.3% from HK$201.7 million in the previous year[112]. - Commission income from IPO brokerage decreased by 71.7% to HK$13.3 million, while interest income from IPO financing dropped by 81.3% to HK$37.7 million[130]. Technology and Innovation - The Group invested heavily in the research and development of mobile trading apps, BS Securities (Baobao) and BS Futures (Doudou), anticipating a rapid increase in investor demand for financial technology[104]. - The Group launched a new service for pre-market trading in U.S. stocks, allowing clients to trade earlier at 4 PM (summer) and 5 PM (winter) Hong Kong time[67]. - The Group is investing in digitalizing investment services with the development of two apps featuring AI 3.0 capabilities[150]. - The Group has developed new features for the Baobao and Doudou apps, including position gain/loss tracking, automatic odd lot selling, and a month-long trading record view[151]. - The Group has implemented a "dual password" security measure for online trading, enhancing client security and compliance with regulatory requirements[158]. - An anti-disruption system has been developed, featuring four trading platforms to ensure seamless trading of global stocks and futures[162]. - The Group's focus on fintech and software development aims to strengthen its core competitiveness and leadership in the industry[156]. Risk Management and Financial Health - The Group's credit risk from receivables is considered low due to individual evaluations based on collateral for all clients, including cash and margin clients[187]. - The Group regularly monitors its liquidity requirements and maintains sufficient cash reserves and committed lines of funding from major financial institutions[191]. - Interest charged on margin and cash clients is based on the cost of funding plus a mark-up, with financial assets primarily at floating rates, indicating minimal interest rate risk[194]. - The Group is exposed to currency risk primarily from financial instruments denominated in multiple currencies, but considers the risk between HKD and USD as insignificant[196]. - The management monitors all foreign currency positions daily to address short-term imbalances and maintain acceptable net exposure levels[200].
耀才证券金融(01428) - 2022 - 年度财报