Financial Performance - Total revenue for the nine months ended September 30, 2023, was HKD 11,427,000, a decrease of 68% compared to HKD 35,493,000 in the same period of 2022[13]. - Revenue from fund management business decreased by 69% to HKD 10,829,000 from HKD 35,061,000 year-on-year[13]. - The company reported a net trading loss of HKD 11,000, compared to no trading loss in the previous year[13]. - Operating loss increased by 116% to HKD 45,134,000 from HKD 20,936,000 in the prior year[13]. - The total comprehensive loss for the period was HKD 45,808,000, up 115% from HKD 21,341,000 in the same period last year[13]. - Basic and diluted loss per share was HKD 11.36, compared to HKD 5.67 in the previous year, reflecting a 100% increase[13]. - For the nine months ended September 30, 2023, revenue was HKD 11.4 million, a decrease from HKD 35.5 million for the same period in 2022, primarily due to a reduction in assets under management and changes in the product portfolio[23]. - The pre-tax loss for the nine months ended September 30, 2023, was HKD 45.1 million, compared to a loss of HKD 22.3 million for the same period in 2022[23]. - General and administrative expenses increased to HKD 56.1 million for the nine months ended September 30, 2023, from HKD 53.6 million in the same period in 2022, driven by higher personnel costs and increased data and administrative expenses[23]. - The group's revenue for the nine months ended September 30, 2023, was HKD 11.4 million, a decrease from HKD 35.5 million for the same period in 2022, primarily due to changes in product structure and a reduction in assets under management[46]. - The group's pre-tax loss for the nine months ended September 30, 2023, was HKD 45.1 million, compared to a loss of HKD 22.3 million for the same period in 2022[48]. - General and administrative expenses for the nine months ended September 30, 2023, were HKD 56.1 million, an increase from HKD 53.6 million for the same period in 2022, mainly due to higher personnel costs[47]. - The company reported a total comprehensive loss of HKD 45,808,000 for the nine months ended September 30, 2023, compared to a total comprehensive loss of HKD 21,341,000 for the same period in 2022, reflecting an increase of 114.5%[110]. - The company reported a net loss of HKD 45,441,000 for the nine months ended September 30, 2023, compared to a net loss of HKD 22,548,000 for the same period in 2022, indicating a 101.5% increase in net loss[110]. Revenue Sources - Revenue from consulting services increased by 41% to HKD 609,000 from HKD 432,000 year-on-year[13]. - Revenue from Hong Kong for the nine months ended September 30, 2023, was HKD 8,389,000, down 71% from HKD 28,822,000 in 2022[120]. - Revenue from Chicago for the nine months ended September 30, 2023, was HKD 3,038,000, a decrease of 54% from HKD 6,671,000 in 2022[120]. - Major client A contributed HKD 6,604,000 in revenue for the nine months ended September 30, 2023, down 49% from HKD 13,099,000 in 2022[122]. Assets Under Management - The average assets under management as of September 30, 2023, were HKD 1,085 million, down from HKD 1,708 million as of September 30, 2022, reflecting a significant decline due to portfolio adjustments by certain investors[18]. - As of September 30, 2023, the company's assets under management (AUM) reached $1,085 million, comprising $168 million from mixed fund products and $917 million from managed accounts[34]. - The average management fee collected on the assets under management decreased compared to the nine months ended September 30, 2022, due to the challenging market environment[23]. - As of September 30, 2023, the group's fund tools had assets under management of USD 168 million, down from USD 447 million as of September 30, 2022[50]. Market Conditions - The market environment showed signs of central banks tightening policies further, yet global stock markets experienced a rebound during the reporting period[36]. - The MSCI World Index increased by 12.9% during the reporting period, following a 7.7% rise in the previous quarter, while the Bloomberg Global Government Bond Index rose by 1.5%[38]. - The VIX index decreased from 21.7 to 17.5 over the first nine months of the year, indicating a decline in implied volatility[39]. - The geopolitical landscape has become more fragile, with ongoing conflicts such as the Russia-Ukraine war and recent escalations in the Middle East, which may impact economic stability[62]. - The ongoing geopolitical tensions and the potential for further fragmentation of global supply chains could lead to long-term inflationary pressures, with estimates suggesting consumer prices could rise by up to 5% in the short term[62]. - The current market environment may lead investors to consider diversification strategies, particularly in relative value volatility and volatility-targeted hedging[65]. Strategic Focus - The company aims to leverage its scalable investment platform to capture potential growth opportunities in adjacent market segments[5]. - The company is focused on expanding its business in Europe and Asia, as outlined in its prospectus dated September 30, 2020[23]. - The company is committed to expanding its business in Europe and Asia, as indicated by increased data and administrative expenses[73]. - The company has established its information technology department, indicating a strategic focus on expanding asset management activities[77]. - The company is focusing on diversifying investment tools, including hedge funds and volatility trading strategies, to capitalize on current market conditions[69]. Shareholder Information - As of September 30, 2023, major shareholders hold significant stakes in True Partner Capital Holding, with Chen Henghui owning 76,432,908 shares, representing 19.10% of the equity[88]. - True Partner International Limited and its parent companies collectively hold 15.58% of True Partner Capital Holding, with DSS Financial Management, Inc. also holding 62,336,908 shares, equating to 15.58%[88]. - Franca Kurpershoek-Hekster and Wong Rosa Maria, spouses of executive directors, hold 14.72% and 14.01% of the equity respectively, indicating strong insider ownership[89]. - The overall shareholder composition suggests a concentrated ownership model, which could impact liquidity and shareholder engagement strategies[88]. Governance and Compliance - The audit committee reviewed the unaudited condensed consolidated financial results for the nine months ended September 30, 2023, and confirmed compliance with applicable accounting standards and GEM listing rules[105]. - The company has adopted the corporate governance code as per GEM listing rules and has made no significant deviations from it, except for the combined role of the Chairman and CEO[98]. Employee and Operational Costs - General and administrative expenses increased to HKD 56.1 million for the nine months ended September 30, 2023, up HKD 2.5 million or about 5% from HKD 53.6 million in the same period of 2022, primarily due to higher employee costs[73]. - The total expenses for employee benefits, including salaries and other benefits, amounted to HKD 33,700,000 for the nine months ended September 30, 2023, an increase of 7.0% from HKD 31,344,000 in 2022[125]. Future Outlook - The company plans to benefit from adjustments made in the business review, which are expected to take effect in Q4 2023 and 2024[48]. - The company believes that the current market conditions present an opportunity for investors to hedge downside risks while retaining upside potential in the market[64].
TRUE PARTNER(08657) - 2023 Q3 - 季度财报