Financial Performance - For the six months ended June 30, 2022, the company's revenue was HKD 1,088,506,000, a decrease of 56% compared to HKD 2,451,549,000 in the same period of 2021[4]. - The profit attributable to ordinary shareholders was HKD 161,251,000, down 83% from HKD 937,604,000 year-on-year, but up 3% from the previous half-year[8]. - Total revenue from commission-based income decreased by 54% to HKD 451 million, primarily due to a 91% drop in financing amounts for IPOs in Hong Kong[14]. - Interest income fell by 27% to HKD 925 million, attributed to a weak market environment and reduced investor financing demand[14]. - Operating profit for the period was HKD 381,959, down 74% from HKD 1,476,056 in the previous year[54]. - Profit for the period attributable to owners of the parent was HKD 161,251, a decline of 83% from HKD 937,604 in the same period last year[54]. - The company reported a significant increase in accounts receivable, which rose to HKD 10,928,121 from HKD 6,559,681 year-over-year[55]. - The total comprehensive income for the period was HKD 120,654, down from HKD 925,139 in the same period last year[54]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.01 per share, with a payout ratio of 60%, and a special dividend of HKD 0.03 per share, totaling HKD 0.04 per share, which is a threefold increase compared to the previous year's final dividend[8]. - The interim dividend declared was approximately HKD 95,878,000 or HKD 0.01 per ordinary share, down from HKD 480,069,000 or HKD 0.05 per share in 2021, reflecting an 80% decrease[90]. - The board approved the removal of the 50% dividend cap and revised the annual dividend target to not less than 30% of the profit attributable to shareholders[27]. Assets and Liabilities - Total assets increased by 5% to HKD 111,528,906,000, driven by a 37% rise in client-held financial products to HKD 43,400,000,000[9]. - Total liabilities rose by 6% to HKD 96.1 billion as of June 30, 2022, mainly due to a 13% increase in issued debt securities to HKD 51.2 billion[18]. - The group's current assets as of June 30, 2022, were HKD 89.6 billion, a 2% increase from the end of 2021, with cash and cash equivalents at HKD 4.961 billion[21]. - The total number of shares outstanding as of June 30, 2022, was 9,587,755,707[39]. Market Conditions - The company faced a challenging market environment, with the Hang Seng Index dropping 7% in the first half of 2022, reaching a ten-year low of 21,860 points[8]. - The average daily trading volume in the Hong Kong stock market decreased by 27% year-on-year to HKD 138.3 billion[8]. - The total amount raised from initial public offerings in the Hong Kong stock market decreased by 91% year-on-year to approximately HKD 19.7 billion[8]. Cost Management - The financing cost decreased by 43% to HKD 21,100,000, primarily due to effective cost control and reduced exposure to high-risk assets[8]. - The total cost decreased by 32% to HKD 919 million, mainly due to a 43% reduction in financing costs[15]. - Salaries, bonuses, and allowances decreased to HKD 329,951 from HKD 415,070, a decline of approximately 20.5%[84]. Share Repurchase and Options - The company repurchased a total of 58,409,000 shares at a total cost of HKD 51,089,093.05 during the six months ended June 30, 2022[43]. - The stock option plan allows for a maximum of 10% of the issued shares (164,000,000 shares) to be issued upon full exercise of options granted[34]. - The weighted average exercise price of share options outstanding as of June 30, 2022, was HKD 1.557 per share[160]. Financial Instruments and Valuation - As of June 30, 2022, the total financial assets at fair value through profit or loss amounted to HKD 62,520,741,000, an increase of 14.5% from HKD 54,841,297,000 as of December 31, 2021[120]. - The fair value measurement hierarchy includes Level 1, Level 2, and Level 3 inputs, reflecting the Group's comprehensive approach to asset valuation[180]. - The total financial liabilities at fair value through profit or loss were HKD 25,054,631,000, with Level 1 at HKD 69,105,000, Level 2 at HKD 23,012,322,000, and Level 3 at HKD 1,973,204,000[192]. Governance and Compliance - The company has complied with all principles and code provisions of the Corporate Governance Code during the reporting period[41]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial report for the six months ended June 30, 2022[45]. - The interim financial report was prepared in compliance with HKAS 34, ensuring that it reflects the company's financial position accurately[50].
国泰君安国际(01788) - 2022 - 中期财报