Financial Performance - The total revenue for the year ended December 31, 2022, was HKD 9.461 billion, an increase of 11% from HKD 8.521 billion in 2021[4]. - The insurance premium and fee income amounted to HKD 9.428 billion, up 11% from HKD 8.479 billion in the previous year[5]. - The adjusted operating profit was approximately HKD 934 million, a 14% increase from HKD 818 million in 2021[7]. - The consolidated loss for the year was HKD 1.11 billion, compared to a profit of HKD 793 million in 2021[4]. - The net loss attributable to equity shareholders was HKD 256 million, down from a profit of HKD 513 million in the previous year[5]. - Total assets as of December 31, 2022, were HKD 102.87 billion, a 4% increase from HKD 98.47 billion in 2021[6]. - Total equity decreased by 26% to HKD 14.794 billion from HKD 19.891 billion in the previous year[6]. - The operating profit from the insurance segment was HKD 1.054 billion, a 6% increase from HKD 993 million in 2021[7]. - The loss from other financial services and corporate segments was HKD 120 million, a 31% improvement from a loss of HKD 175 million in the previous year[7]. - The basic loss per share for the year was HKD 0.07, compared to earnings of HKD 0.13 per share in 2021[5]. - The total premium and fee income for the insurance business amounted to HKD 11.446 billion in 2022, compared to HKD 11.147 billion in 2021, reflecting a growth of approximately 2.7%[14]. - The recognized premium and fee income based on Hong Kong Financial Reporting Standards was HKD 9.430 billion in 2022, up from HKD 8.480 billion in 2021, indicating an increase of about 11.2%[14]. - The total premium and fee income from Hong Kong was HKD 6.978 billion (61% of total), while Macau contributed HKD 4.468 billion (39%) in 2022[16]. - The total assets of the insurance segment amounted to HKD 100.93 billion, up from HKD 89.17 billion in the previous year[28]. - The total liabilities of the insurance segment increased to HKD 88.86 billion, compared to HKD 73.34 billion in the previous year[28]. - The net policyholder benefits decreased by 48% to HKD 1.306 billion from HKD 2.506 billion[23]. - Investment and other income net amount decreased by 38% to HKD 3.128 billion from HKD 5.018 billion[23]. - Total available capital decreased to HKD 6,603 million in 2022 from HKD 7,293 million in 2021, a decline of 9.5%[36]. - The solvency ratio dropped to 247% in 2022 from 281% in 2021, a decrease of 34%[36]. - Interest income and other investment income increased to HKD 2,360 million in 2022 from HKD 2,157 million in 2021, a growth of 9.4%[32]. - Operating profit grew by 6% to HKD 1.054 billion, while net profit decreased by 22% to HKD 705 million[26][27]. Insurance Business Overview - The insurance division had approximately 3,204 exclusive agents in Hong Kong and Macau as of December 31, 2022, down from 3,462 in the previous year[11]. - The number of effective individual policyholders increased to over 529,000 in 2022, compared to 523,000 in 2021[11]. - The group plans to continue developing exclusive agency, brokerage, and bank insurance distribution channels to increase market penetration and expand the potential customer base[12]. - The insurance division aims to enhance its product and service offerings by developing innovative products to meet changing customer needs and improve operational efficiency through technology[12]. - The exclusive agency channel remains the most significant distribution channel for premium and fee income, and the group intends to steadily develop this channel[12]. - The group is exploring new partnerships with banks and financial institutions to expand its bank insurance distribution channel[12]. - The embedded value of the insurance business as of December 31, 2022, is HKD 205.87 billion, an increase of 14% from HKD 180.61 billion as of December 31, 2021[19]. - The new business value for the year ended December 31, 2022, is HKD 893 million before capital costs, compared to HKD 851 million for the previous year, reflecting a growth of 4.9%[58]. - The capital costs deducted from new business value were HKD 135 million in 2022, down from HKD 171 million in 2021, showing a reduction of 21.1%[58]. - The risk discount rate used for calculations is set at 8.75% for both December 31, 2022, and December 31, 2021[60]. - The expected return on embedded value for 2022 is HKD 1,565 million, compared to HKD 1,360 million in 2021, marking an increase of 15.1%[59]. - The company has a 69.8% ownership stake in the insurance business segment, which affects the reported embedded value and new business value[56]. Corporate Governance and Management - The company reported its annual performance for the year ending December 31, 2022, with a focus on maintaining high standards of corporate governance[76]. - The board of directors consists of a diverse group with appropriate skills and experience, ensuring independent judgment and consideration of shareholder interests[79]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance with the standard code throughout the year[77]. - The board is committed to continuous review and enhancement of risk management and internal control systems to align with the company's mission and values[76]. - The company has maintained at least three independent non-executive directors, ensuring compliance with listing rules regarding independence[79]. - The board emphasizes the importance of corporate culture in achieving the company's mission and enhancing overall shareholder value[76]. - The company has a structured approach to communication with shareholders, ensuring their interests are recognized[78]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[79]. - The company is focused on attracting and retaining talented management through effective governance frameworks[76]. - The board has established policies and strategies to oversee the group's business operations and achieve business objectives[78]. - The company held a total of 4 board meetings and 1 annual general meeting during the year ended December 31, 2022[80]. - The remuneration committee conducted 1 meeting to review the compensation of directors and senior management, with 2 individuals earning between HKD 0 to 5,000,000 and 1 individual earning between HKD 5,000,001 to 10,000,000[89]. - The board has adopted an updated diversity policy in 2022 to enhance operational efficiency and attract talent[84]. - The board believes its current composition is diverse and meets the standards of the diversity policy, with no measurable targets set for its implementation[86]. - The company has established three committees: nomination committee, remuneration committee, and audit committee, each with clear terms of reference[87]. - The company emphasizes the importance of a balanced structure and appropriate levels of skills, experience, and perspectives in its board composition[84]. - The chairman and the CEO roles are complementary, ensuring clear division of responsibilities[80]. - The company has provided ongoing professional training to all directors regarding corporate governance and regulatory developments[83]. - The remuneration committee has adopted a remuneration policy for independent non-executive directors, non-executive directors, and executive directors to reflect sound governance practices[88]. - The board regularly reviews its diversity policy to ensure compliance and effectiveness[86]. - The audit fees for the year ending December 31, 2022, totaled HKD 13,647,000, an increase from HKD 12,196,000 in 2021, representing a growth of approximately 11.9%[93]. - The audit committee held 2 meetings during the year to review the group's financial reporting and internal controls[91]. - The company emphasizes a zero-tolerance policy towards bribery, extortion, fraud, and money laundering, ensuring a high standard of ethical conduct[92]. - The board is responsible for assessing the nature and extent of risks undertaken to achieve the group's strategic objectives, maintaining a robust risk management and internal control system[95]. - The company has adopted a nomination policy to ensure diversity in the board's composition, considering factors such as gender, age, and professional experience[90]. - The company recognizes the importance of effective risk management while pursuing business growth, aiming for a balance between risk and growth[94]. Risk Management - The company has established a risk management department to address operational risks and ensure corrective measures are implemented[116]. - The company has conducted emergency drills for various business lines to mitigate potential operational risks[116]. - The internal audit function focused on operational risks and conducted audits on various business functions throughout the year[97]. - The company has established a process for disclosing inside information, ensuring timely and accurate communication of significant news[99]. - The company has adopted an updated shareholder communication policy to provide clear and comprehensive information regarding its performance[104]. - The company has not fixed a dividend payout ratio, with dividends subject to board approval based on performance, working capital, and other relevant factors[104]. - The company closely monitors regulatory developments in the financial markets, which can impact its operations and requires appropriate licenses and approvals[109]. - Insurance risk is managed through pricing assumptions based on mortality, morbidity, and other factors, with reinsurance utilized to mitigate underwriting risks[110]. - Market risk is monitored daily, assessing the impact of price fluctuations and significant news on the company's exposure[111]. - Currency risk is primarily associated with non-USD policies, but the company employs cross-currency swaps and forward contracts to mitigate this risk[112]. - Interest rate risk is controlled through asset-liability matching techniques, ensuring the duration of assets aligns with liabilities to minimize volatility in solvency ratios[113]. - Credit risk is managed by diversifying the investment portfolio and utilizing credit default swaps, with no breaches of market concentration limits reported in 2022[114]. - The company has implemented monitoring for cybersecurity risks, with stable and controllable incident reports in 2022, enhancing network behavior oversight[115]. - The company has established a clear reporting mechanism for anti-money laundering and terrorist financing, ensuring compliance with applicable laws and regulations[187]. - The company actively monitors the market reputation and business practices of existing counterparties to mitigate risks[188]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report indicates that the company has identified significant environmental, social, and governance issues through a materiality assessment, reflecting stakeholder opinions[155]. - The company emphasizes the quantification of key performance indicators (KPIs) to evaluate the effectiveness of its ESG policies and strategies[155]. - The report covers the company's operations in Hong Kong, Macau, and mainland China, including 15 offices in Hong Kong and five branches in Macau[157]. - The board of directors is responsible for overseeing risk management and internal control systems related to ESG matters, ensuring alignment with strategic goals[159]. - The company engages with stakeholders through various communication channels to understand their expectations and concerns regarding ESG practices[161]. - The company aims to create sustainable returns for shareholders by integrating sustainability factors into its governance framework and investments[154]. - The ESG report is prepared in accordance with the guidelines set forth by the Hong Kong Stock Exchange, ensuring transparency and balance in data disclosure[154]. - The company emphasizes a zero-tolerance policy towards child labor and forced labor, complying with all applicable laws and regulations[168]. - The company has implemented a comprehensive benefits package, including stock options and retirement benefits, to attract and retain talent[166]. - The workforce diversity policy aims to ensure equal employment opportunities and prevent discrimination based on gender, age, or other personal circumstances[167]. - The company has a strong commitment to maintaining a fair and respectful workplace, guided by its human resources practices[165]. - The company regularly engages with stakeholders to identify environmental, social, and governance risks and opportunities[164]. - The company has not reported any significant violations of human rights-related laws during the reporting period[168]. - The company is focused on creating a diverse and inclusive work environment to enhance its operational effectiveness[166]. - The company has implemented energy-efficient practices, including the use of LED lighting during office renovations[190]. - The company has not reported any significant violations regarding environmental emissions during the reporting period[192]. - The company is considering integrating environmental, social, and governance factors into its investment strategies and financial service decisions[194]. Community Engagement and Social Responsibility - The company provided a total of HKD 1.2 million in various COVID-19 related benefits, including hospitalization cash allowances and testing support[198]. - The company distributed 4,000 anti-epidemic care packages to support the community during the pandemic[198]. - The company donated HKD 3 million to the Hong Kong Arts Festival Foundation to promote local arts and culture[199]. - The "Astronaut Training Program" for children will be relaunched next year after a three-year suspension due to the pandemic[197].
云锋金融(00376) - 2022 - 年度业绩