Financial Performance - Total revenue for the year 2023 was HKD 13,289,000, a decrease of 70% compared to HKD 44,793,000 in 2022[16] - Revenue from fund management business dropped by 72% to HKD 12,398,000 from HKD 44,106,000 in the previous year[16] - The company reported an operating loss of HKD 65,429,000, which is a 104% increase from the operating loss of HKD 32,150,000 in 2022[16] - The annual loss for 2023 was HKD 67,001,000, representing a 100% increase from HKD 33,508,000 in 2022[16] - Basic and diluted loss per share for 2023 was HKD 16.75, up 99% from HKD 8.41 in 2022[16] - The company reported a loss before tax of HKD 65.5 million for the reporting period, compared to a loss of HKD 34.6 million in 2022, with the loss attributable to shareholders amounting to HKD 67 million after tax, up from HKD 33.6 million in the previous year[31] - General and administrative expenses increased to HKD 78.3 million in 2023 from HKD 74.1 million in 2022, reflecting a rise of HKD 4 million during the reporting period[33] - The overall revenue decline in 2023 was influenced by a challenging trading environment and specific client-related changes[81] Market Conditions - The VIX ETF experienced a decline of 72.7% during the reporting period[19] - The overall market volatility decreased significantly in 2023, despite rising macro and geopolitical risks[50] - The geopolitical situation and inflationary pressures are expected to pose significant risks to future market performance[49] - The volatility indices, including the VIX, saw significant declines during the reporting period, with the VIX dropping from 21.7 to 12.5[20] - The MSCI World Index experienced a total return increase of 24.3% during the reporting period, with strong quarterly performances of 7.7% and 7.4% in Q1 and Q2, respectively, followed by a slight decline of -2.4% in Q3 and a rebound of 10.1% in Q4[20] - The current market backdrop may lead more investors to consider diversification options, such as relative value volatility and volatility-targeted hedging[99] Strategic Initiatives - The company implemented a cost-cutting plan, resulting in a 34.48% reduction in employee numbers, which is expected to yield benefits in the next twelve months[31] - The company adjusted its fee structure in October 2023 to a management fee of 1% and a performance fee of 20%, down from 2% and 20% respectively, which would have resulted in a return rate of 0.05% if the previous fee structure had been applied[25] - The company is preparing to launch its first derivative fund product in China later this year, indicating progress in its onshore business[61] - The company continues to invest in technology and infrastructure to expand its capabilities and meet the needs of global clients[59] - The company aims to enhance its client relationship management infrastructure and analytics, utilizing industry-leading software[86] Investment Strategy - The company's trading strategy primarily focuses on relative value, which historically performs best during market downturns and periods of rising volatility[26] - The investment strategy focuses on absolute returns, aiming to profit in various market conditions, and may benefit from alternative diversification tools like hedge funds and volatility trading[101] - Customized solutions are being developed to capitalize on the anticipated opportunities arising from increased volatility and strong negative returns in the stock market[101] Corporate Governance - The board has decided not to declare dividends for the year ending December 31, 2023, due to challenges in the market environment affecting fund performance[61] - The company emphasizes compliance and risk management, ensuring adherence to financial regulations and standards[162] - The board of directors is committed to maintaining good corporate governance standards to protect shareholder interests and enhance corporate value[182] - The company has established an independence assessment mechanism for the board to ensure strong independent judgment and protect shareholder interests[190] - All directors confirmed compliance with the code of conduct for the year ending December 31, 2023[183] Technology and Innovation - The company is committed to leveraging its technological advancements to improve trading efficiency and risk management[155] - The company made significant improvements to its proprietary backtesting systems and analytical tools in 2023, enhancing infrastructure stability and security[90] - The company has a strong focus on alternative investments and manager selection, with Kavanagh overseeing investment solutions[167] - The management team includes professionals with academic backgrounds in finance and technology, enhancing the company's strategic direction[150][156] Workforce Management - The company reduced its workforce by 34.48% as part of a cost-cutting initiative, aiming to benefit from these adjustments in the next twelve months[82] - The group employed a total of 25 staff as of December 31, 2023, down from 33 in the previous year[145] Financial Position - As of December 31, 2023, the group's net cash balance was HKD 66 million, with a current ratio of 8.6 times[132] - The group has no corporate bank borrowings and maintains a cash net position exceeding its debt net position[132] - The total equity and issued shares of the group as of December 31, 2023, were HKD 95.3 million and 400,000,000 shares, respectively[133]
TRUE PARTNER(08657) - 2023 - 年度财报