Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 44,793,000, a decrease of 24% compared to HKD 58,917,000 in 2021[16] - Revenue from fund management activities was HKD 44,106,000, down 24% from HKD 57,963,000 in the previous year[16] - The company reported an operating loss of HKD 32,150,000, which is a 45% increase from the operating loss of HKD 22,103,000 in 2021[16] - The annual loss for 2022 was HKD 33,508,000, representing a 31% increase from HKD 25,487,000 in 2021[16] - Loss attributable to owners of the company was HKD 33,636,000, up 29% from HKD 26,020,000 in the prior year[16] - Basic and diluted loss per share for 2022 was HKD 8.41, compared to HKD 6.51 in 2021, reflecting a 29% increase[16] - The group's revenue for the reporting period was HKD 44.8 million, a decrease of HKD 14.1 million or approximately 24% compared to HKD 58.9 million in the same period last year[155] - Gross profit for the group was HKD 41.4 million, down HKD 11 million or 21% from HKD 52.4 million for the year ended December 31, 2021, primarily due to a decrease in average revenue per unit of assets under management[156] Market Conditions - The MSCI World Index experienced a decline of 15.4% for the full year 2022, partially reversing a 24.4% gain from 2021[10] - The S&P 500 Total Return Index rose by 57% over the past five years, while the MSCI World Index increased by over 40% in the same period[10] - The Bloomberg Global Government Bond Index fell by 10.0% during the reporting period, with a slight positive return of 0.1% in Q4 2022[10] - The S&P 500 Total Return Index declined by 18.1%, while the Put Protection Index and VIX Tail Hedge Index fell by 19.8% and 26.1%, respectively[27] - The VIX index increased from 17.2 at the end of 2021 to 21.7 at the end of 2022, indicating a rise in implied volatility[27] - The Euro Stoxx 50 VSTOXX index rose from 19.3 to 29.0 during the same period, reflecting increased market uncertainty[27] - The report highlights a limited response in stock index volatility despite overall market declines, indicating an unusual market environment[10] - The firm did not observe significant alpha opportunities during the reporting period due to limited market reactions[10] Investment Strategy and Performance - True Partner Capital's strategy focuses on absolute returns and alpha generation, differing significantly from traditional protective strategies[27] - True Partner Fund achieved an average quarterly return of 6.1% during the eleven negative quarters of the MSCI World Index, contrasting with an average loss of 8.6% for the index[10] - The True Partner Fund outperformed the CBOE Eurekahedge relative value volatility hedge fund index and the CBOE long volatility hedge fund index in both absolute and alpha terms since its inception in July 2011[33] - The fund's investment strategy faced challenges during the reporting period, with slight losses in Q1, Q3, and Q4, partially offset by small gains in Q2[31] - The overall stock market downturn did not lead to significant alpha opportunities for the company's strategy during the reporting period[82] Technology and Operations - The company utilizes proprietary technology that includes a range of models and tools to shape its trading approach[8] - True Partner Capital expanded its capabilities in 2022 by investing heavily in improving proprietary trading technology, enhancing data, analytical tools, and backtesting capabilities[62] - The company is focused on enhancing its core proprietary systems, including Typhoon Trader and Observatory, to improve stability, resilience, and security[102] - The company aims to enhance its trading infrastructure and technology capabilities to improve operational efficiency and market responsiveness[188] - The company is committed to improving its quantitative research infrastructure, investing in data and analytical tools to enhance strategy testing capabilities[103] Regulatory and Licensing - True Partner Capital received its investment company license from the Dutch Authority for the Financial Markets on March 24, 2022, and a Qualified Foreign Institutional Investor (QFII) license from the China Securities Regulatory Commission on August 24, 2022[40] - The company received an expanded QFII license in 2022, allowing it to trade onshore in the Chinese stock market and access various onshore derivatives markets[62] Future Outlook - Future growth opportunities are anticipated in adjacent market segments through a scalable investment platform[8] - The company expresses optimism for 2023, anticipating improved opportunities despite the challenging market environment faced in 2022[64] - The company plans to enhance its trading technology and expand its strategies, particularly in the onshore Chinese market, to capitalize on future opportunities[64] - The company anticipates increased market volatility in the next twelve months, presenting opportunities for various investment strategies[122] Human Resources and Management - The company has hired 15 new personnel for compliance, risk management, accounting, trading, and IT since 2021 to expand its operations in Hong Kong, Amsterdam, London, and Chicago[127] - The management team has a strong academic background, with advanced degrees in applied physics, management science, and economics from reputable universities[189][192] - The management team is committed to fostering a culture of collaboration and knowledge sharing to drive the company's strategic initiatives forward[187] Financial Position - The group reported a pre-tax loss of HKD 34.6 million for the reporting period, compared to a loss of HKD 24.5 million in 2021[40] - The total loss attributable to the company's owners after tax was HKD 33.6 million, up from HKD 26 million in 2021[40] - As of December 31, 2022, the group's net cash balance was HKD 122.7 million, with a current ratio of 13.3 times, indicating a stable cash position[164] - The group's total equity and issued shares as of December 31, 2022, were HKD 161.8 million and 400,000,000 shares, respectively[166] Marketing and Investor Relations - The group actively utilized technology to enhance marketing effectiveness, engaging with investors through webinars and major industry conferences in Europe and the US[40] - The company is actively participating in various investment forums across Europe and the U.S. to engage with existing and potential investors[99] - The company continues to monitor the impact of COVID-19 travel and quarantine restrictions on attracting new overseas investors, with a focus on adjusting the timeline for utilizing unspent funds[131]
TRUE PARTNER(08657) - 2022 - 年度财报