Economic Indicators - In 2023, the core consumer price index (CCPI) in the US decreased from 5.6% in January to 3.9% in December, while the core personal consumption expenditures (PCE) price index fell from 4.9% to 2.9%[8]. - The US dollar index dropped by 4.6% in Q4 and 2.1% for the entire year, reflecting market expectations of the end of the interest rate hike cycle[9]. - Major US stock indices rose between 11.2% and 13.6% in Q4, with annual increases ranging from 13.7% to 43.4%[9]. - The Stoxx 50, German, and French stock indices saw annual gains between 16.5% and 20.3%, while the UK stock index increased by 3.8%[9]. - The JPM Emerging Markets Government Bond Index rose by 10.9% for the year, with a 6.9% increase in Q4[9]. - The Markit iBoxx Asian USD High Yield Bond Index fell by 14.6% for the year, while the Asian USD Real Estate Bond Index dropped significantly by 50.3%[9]. Financial Performance - The group recorded a total revenue of HKD 136.39 million in 2023, a decrease of 4% compared to HKD 142.03 million in 2022[18]. - The group's net loss after tax for the year was HKD 12.85 million, an improvement from a net loss of HKD 22.41 million in the previous year, representing a reduction of approximately 42%[18]. - The asset management segment's managed scale increased by 6% to HKD 51.5 billion, but operating income decreased by 23% to HKD 57.03 million due to competitive fee reductions[20]. - The group's share of profits from joint ventures increased by 277% to HKD 24.36 million, primarily due to the turnaround of an absolute return fund and improved performance from a private equity investment joint venture[19]. - The group's operating costs decreased by 7% to HKD 115.87 million, aided by a 6% reduction in personnel costs[18]. - The group's other income fell by 20% to HKD 23.76 million, compared to HKD 29.72 million in 2022[18]. - The group's financial expenses rose by 29% due to increased market interest rates, offsetting the impact of a decrease in average borrowing scale[18]. - The group reported a pre-tax loss of only HKD 0.17 million, a significant improvement from a loss of HKD 11.38 million in 2022[19]. Market Conditions - In 2023, the total fundraising amount in the Hong Kong IPO market was approximately HKD 46.3 billion, a decrease of 55.7% compared to the previous year, marking the lowest level in nearly 20 years[23]. - The equity business managed to successfully list one IPO project and completed several financial and compliance advisory projects despite the sluggish market conditions[23]. - The bond issuance segment completed several offshore USD and RMB bond issuance projects totaling USD 1.91 billion, maintaining a similar scale to the previous year[23]. - The operating income for the bond issuance segment increased by 42% to HKD 19.23 million, compared to HKD 13.54 million in the same period last year[23]. - The average daily trading amount in the Hong Kong securities market decreased by 16% to HKD 105 billion, down from HKD 124.9 billion the previous year[24]. - The operating income for the sales and trading segment slightly increased by 2% to HKD 49.35 million, with commission income at HKD 22.36 million, down from HKD 31.62 million in 2022[24]. - The company recorded a loss of HKD 7.38 million in the sales and trading segment, compared to a loss of HKD 7.33 million in the previous year[24]. Strategic Initiatives - The company plans to enhance collaboration with Xinda Securities to strengthen integrated financial services, focusing on cross-border investment banking services and asset management products[33]. - The group aims to increase business volume and market share while adhering to risk management principles, focusing on wealth management and diversifying products in the Guangdong-Hong Kong-Macao Greater Bay Area[34]. - The group is actively exploring the development of the offshore debt market for Chinese enterprises, aiming to meet diverse client needs with tailored solutions[34]. - The group emphasizes the importance of talent cultivation and has established incentive mechanisms to encourage better performance and risk control among employees[39]. - The group is prepared to face the current challenging business environment and aims to seize various market opportunities in 2024 to enhance overall performance and shareholder returns[34]. Corporate Governance - The board consists of three executive directors and three independent non-executive directors, meeting the minimum requirements set by the listing rules[57]. - The company is committed to maintaining high standards of corporate governance and has established policies and procedures in line with the corporate governance code[55]. - The independent non-executive directors have extensive experience in finance and management, contributing to the company's strategic oversight[48][50]. - The company has been compliant with the corporate governance code throughout the fiscal year, with all directors attending the board meetings[56]. - The company aims to enhance its market position through strategic decision-making and oversight by the board[56]. - The company is actively reviewing and monitoring its corporate governance practices to ensure compliance with relevant codes[56]. - The board of directors consists of members with appropriate experience and skills, ensuring effective governance and oversight[59]. - The company has three independent non-executive directors, all confirmed to be independent as of December 31, 2023[61]. - The remuneration committee, composed of three independent non-executive directors, held one meeting during the fiscal year to discuss the remuneration of two executive directors[72]. Environmental, Social, and Governance (ESG) Efforts - The company has received multiple environmental, social, and governance awards in 2023, reflecting its commitment to corporate social responsibility[113]. - The company aims to reduce greenhouse gas emissions from business flights by 1% to 2% in 2024 compared to 2023 levels[124]. - The primary source of greenhouse gas emissions is electricity consumption, prompting the company to implement energy-saving measures such as installing LED lighting and optimizing air conditioning settings[126]. - The company has launched a new mobile trading platform in October 2021, offering online account opening and various trading services[129]. - The company encourages stakeholders to provide feedback on environmental, social, and governance (ESG) matters through various channels, contributing to business decision-making[118]. - The company has set a goal to minimize paper consumption by promoting electronic communication and implementing a paperless board meeting system[129]. - The company emphasizes the importance of effective resource utilization and aims to reduce waste in daily operations[126]. - The board is committed to integrating ESG considerations into business decision-making processes to create long-term value for stakeholders[120]. - Total greenhouse gas emissions decreased by 9% from 2022 to 2023, achieving the reduction target for 2023[131]. Employee and Workplace Policies - The company has a total of 90 employees, with an equal gender distribution of 45 males and 45 females[149]. - The company provided over 1,500 hours of training this year, emphasizing the importance of employee skill development[160]. - The company has implemented various preventive measures against COVID-19, ensuring a safe working environment[157]. - The company has a policy of equal employment opportunities, providing training and career development without discrimination[147]. - The company actively promotes a culture of health and safety, with strict adherence to safety measures outlined in the employee handbook[157]. - The company strictly adheres to the Employment Ordinance in Hong Kong, prohibiting child labor and forced labor[165]. - The company employs 20 suppliers in Hong Kong for administrative services, ensuring fair selection criteria to avoid conflicts of interest[168]. Financial Management - The company did not declare any interim dividends for the year 2023, consistent with 2022, and the board does not recommend a final dividend for the year ending December 31, 2023, also in line with 2022[187]. - The company's available distributable reserves as of December 31, 2023, amounted to HKD 60,692,000, a decrease from HKD 79,468,000 in 2022[193]. - The company issued a five-year unsecured corporate bond with a maximum principal amount of HKD 200,000,000, with interest rates ranging from 3% to 5%[191]. - The company has no outstanding bonds as of December 31, 2023, following the repayment of a HKD 10,000,000 bond on April 21, 2023[191].
信达国际控股(00111) - 2023 - 年度财报