Financial Performance - Total revenue for Q1 2022 was HKD 14,046,000, a decrease of 5% compared to HKD 14,795,000 in Q1 2021[14] - Gross profit for the same period was HKD 12,674,000, down 4% from HKD 13,136,000 year-over-year[14] - Operating loss increased to HKD 5,696,000, representing a 120% rise from HKD 2,589,000 in the previous year[14] - The total loss for the period was HKD 6,492,000, which is 48% higher than the loss of HKD 4,375,000 in Q1 2021[14] - Loss attributable to owners of the company was HKD 6,620,000, up 48% from HKD 4,464,000 in the same quarter last year[14] - The comprehensive loss for the period was HKD 3,692,000, a 33% improvement compared to HKD 4,497,000 in Q1 2021[14] - Basic and diluted loss per share was HKD 1.66, compared to HKD 1.12 in the prior year, reflecting a 48% increase in loss per share[14] Market Environment - The overall market environment in Q1 2022 was described as unusual, impacting the alpha opportunities for the trading strategy[22] - The VIX index rose from 17.22 to 20.56 during the quarter, reflecting increased market volatility[23] - The MSCI World Total Return Index declined by 4.5%, recovering only part of the previous quarter's 8.2% gain[18] - The Nasdaq index underperformed the S&P 500 in Q1 2022, suggesting a shift in market dynamics favoring value stocks over growth stocks[91] - The ongoing geopolitical risks from the Russia-Ukraine conflict are expected to exacerbate inflation issues and impact commodity markets[85] Trading Strategy and Performance - The trading strategy faced challenges in Q1 2022, with small losses in January, slight gains in February, and losses in March[24] - The relative value trading strategy performed best historically during periods of market downturns and rising volatility, but faced limited opportunities in Q1 2022[24] - In quarters where the S&P 500 Total Return Index dropped by 4% or more, the Put Protection Index historically outperformed by an average of 4.17%[22] - The Put Protection Index fell 7.85% in Q1 2022, underperforming the S&P 500 Total Return Index, which declined 4.60%, resulting in a relative performance difference of 3.25%[59] Assets Under Management (AUM) - As of March 31, 2022, the assets under management (AUM) were $1,618 million, an increase from $1,550 million as of March 31, 2021, but a decrease from $1,675 million as of December 31, 2021[27] - The group reported a pre-tax loss of 6.4 million HKD for Q1 2022, compared to a loss of 3.7 million HKD in Q1 2021[31] - The net inflow for managed accounts was positive, while the net inflow for fund products was negative, leading to a net increase in overall AUM[31] - Assets under management (AUM) reached $1,800 million in Q1 2022, up from $1,500 million in Q1 2021, representing a growth of 20%[44] Business Expansion and Strategy - The group is actively expanding its business in Europe and Asia, including obtaining an investment company license from the Dutch Authority for the Financial Markets[32] - The group completed the acquisition of 49% of True Partner Advisor Hong Kong Limited on February 15, 2022, gaining full ownership to enhance investment management capabilities[32] - The company is leveraging proprietary technology and a scalable investment platform to explore growth opportunities in adjacent market segments[5] - The firm continues to expand its product offerings and market presence, focusing on both fund products and managed accounts[51] Expenses and Financial Management - General and administrative expenses for Q1 2022 were 18.4 million HKD, up from 15.7 million HKD in Q1 2021, mainly due to increased personnel costs[31] - The average revenue per unit of AUM slightly decreased in Q1 2022 compared to Q1 2021 due to a shift in fee structures[31] - The company reported a loss before tax of HKD (6,378,000), compared to a loss of HKD (3,683,000) in the previous year, indicating a deterioration of 73.5%[133] - The group incurred current tax expenses of HKD 114,000 for the three months ended March 31, 2022, compared to HKD 692,000 for the same period in 2021[158] Shareholding and Corporate Governance - The total equity ownership of the major shareholders indicates a significant concentration of shares among a few individuals and entities[111] - The company continues to maintain compliance with the Securities and Futures Ordinance regarding the disclosure of shareholdings[110] - The board does not recommend any dividend payment for the three months ended March 31, 2022, consistent with the previous year[98] - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring compliance with governance standards[123]
TRUE PARTNER(08657) - 2022 Q1 - 季度财报