Revenue and Profit Growth - Revenue increased by 39% to HKD 3,217,372 thousand in 2023 compared to HKD 2,314,917 thousand in 2022[3] - Net profit attributable to ordinary shareholders surged by 150% to HKD 201,261 thousand in 2023 from HKD 80,381 thousand in 2022[3] - Total revenue for 2023 reached 3,217,372 thousand HKD, compared to 2,314,917 thousand HKD in 2022, representing a significant increase[23] - Revenue increased by 39% year-on-year to HKD 3.217 billion, with net profit attributable to ordinary shareholders surging 150% to HKD 201 million[43] - Net profit for the group rose to HKD 206.11 million in 2023, compared to HKD 83.04 million in 2022, reflecting improved performance across most segments[17][18] Segment Performance - Wealth Management segment revenue increased to HKD 1,855.91 million in 2023, up from HKD 1,271.27 million in 2022, driven by higher interest income and commission fees[17][18] - Institutional Investor Services segment revenue decreased to HKD 1,010.41 million in 2023 from HKD 1,329.51 million in 2022, primarily due to lower trading and investment gains[17][18] - Corporate Finance Services segment revenue declined to HKD 197.69 million in 2023 from HKD 287.02 million in 2022, reflecting reduced commission and fee income[17][18] - Investment Management segment turned profitable with revenue of HKD 153.36 million in 2023, compared to a loss of HKD 572.87 million in 2022, driven by improved trading and investment performance[17][18] - Wealth management division revenue increased by 46% to HKD 1.856 billion (2022: HKD 1.271 billion), while institutional investor division revenue decreased by 24% to HKD 1.01 billion (2022: HKD 1.33 billion)[52] - Corporate finance division revenue decreased by 31% to HKD 198 million (2022: HKD 287 million), and investment management division turned a profit of HKD 153 million (2022: loss of HKD 573 million)[52] Interest Income and Financial Products - Interest income rose by 22% to HKD 1,810,154 thousand in 2023 from HKD 1,486,261 thousand in 2022[3] - Bank and other interest income surged to 1,166,075 thousand HKD in 2023, up from 391,854 thousand HKD in 2022[23] - Interest income increased by 22% to HKD 1.81 billion (2022: HKD 1.486 billion), driven by a 198% surge in interest income from banking and other sources to HKD 1.166 billion[51] - Net revenue from financial products rose 85% year-on-year to HKD 760 million, driven by global interest rate hikes and increased client demand[43] - Trading and investment turned a profit of HKD 718 million (2022: loss of HKD 37.49 million), with financial product income up 85% to HKD 760 million[51] Assets and Liabilities - Total assets grew by 14% to HKD 107,535,153 thousand in 2023 from HKD 94,455,086 thousand in 2022[3] - Total current assets increased to HKD 89,812,402 thousand in 2023 from HKD 77,672,831 thousand in 2022[5] - Total liabilities rose to HKD 77,926,518 thousand in 2023 from HKD 66,492,350 thousand in 2022[6] - Total assets increased by 14% to HKD 107.53 billion (2022: HKD 94.46 billion), while total liabilities increased by 16% to HKD 92.57 billion (2022: HKD 79.52 billion)[54][55][56] - Current assets increased by 16% to HKD 89.81 billion, with cash and cash equivalents at HKD 7.408 billion (2022: HKD 7.757 billion)[58] Dividends and Shareholder Returns - Total dividends doubled to HKD 191,078 thousand in 2023 from HKD 95,608 thousand in 2022[3] - The company proposed a final dividend of 0.01 HKD per ordinary share for 2023, totaling 95,539 thousand HKD[27] - The company proposed a final dividend of HKD 0.010 per share for the year ending December 31, 2023, bringing the total annual dividend to HKD 0.020 per share[62] Earnings and Share Performance - Earnings per share (basic and diluted) increased by 163% to HKD 2.1 cents in 2023 from HKD 0.8 cents in 2022[3] - Basic earnings per share for 2023 were calculated based on a profit attributable to ordinary shareholders of 201,261 thousand HKD, up from 80,381 thousand HKD in 2022[30] Financial Statements and Compliance - The financial data for 2023 and 2022 is extracted from the statutory consolidated financial statements[8] - The company has submitted financial statements for the year ended December 31, 2022, and will submit for 2023 in due course[8] - The financial data is prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS)[9] - The company has not applied any new standards or interpretations that are not yet effective[10] - The adoption of revised HKFRS has no significant impact on the financial statements[10] - The company will disclose information related to Pillar Two income taxes when relevant tax laws are enacted or substantially enacted[14] - The audit committee reviewed the company's accounting principles, internal controls, and financial reporting, including the annual results announcement and consolidated financial statements for the year ending December 31, 2023[66] - The external auditor, KPMG, confirmed that the financial data in the annual results announcement matched the audited consolidated financial statements for the year ending December 31, 2023[67] Operational and Strategic Highlights - The company successfully obtained key qualifications such as the first batch of overseas eligible participants for "Swap Connect" and the first batch of eligible market makers for the "HKD-RMB Dual Counter Model"[45] - Launched the "Junhong Global Connect" app and created the HKD/USD money market fund and cash management product "Wealth Treasure" to cater to client needs[46] - Completed 4 IPO sponsorship projects in Hong Kong, including Beijing SinoHytec Co., Ltd. and UBTECH Robotics Corp., and assisted 26 companies in raising funds in the stock market[48] - Issued over HKD 80 billion in sustainable finance-related projects, including 35 ESG-related bonds, and achieved operational carbon neutrality for the first time[50] - The company expects continued global economic pressure in 2024 but plans to focus on wealth management, cross-border financial services, and digital transformation to expand customer resources and diversify revenue sources[61] Costs and Expenses - Employee costs increased to 781,340 thousand HKD in 2023 from 721,499 thousand HKD in 2022[24] - Financing costs rose significantly to 1,495,006 thousand HKD in 2023 from 676,664 thousand HKD in 2022[25] - Total costs increased by 32% to HKD 3.039 billion, with financing costs up 1.2 times due to rising global interest rates[53] Loans and Receivables - Margin loans decreased to HKD 7,631,029 thousand in 2023 from HKD 8,120,943 thousand in 2022, a decline of 6.0%[32] - Term loans to customers dropped significantly to HKD 235,365 thousand in 2023 from HKD 467,662 thousand in 2022, a decrease of 49.7%[32] - Total receivables increased to HKD 8,461,351 thousand in 2023 from HKD 5,674,142 thousand in 2022, a growth of 49.1%[33] - Brokerage and dealer receivables surged to HKD 6,660,076 thousand in 2023 from HKD 3,630,107 thousand in 2022, an increase of 83.5%[33] Payables and Borrowings - Total payables rose to HKD 18,048,359 thousand in 2023 from HKD 16,726,328 thousand in 2022, an increase of 7.9%[37] - Unsecured bank borrowings increased to HKD 9,918,099 thousand in 2023 from HKD 9,305,775 thousand in 2022, a rise of 6.6%[39] Capital Commitments and Underwriting - Capital commitments for system upgrades and property renovations amounted to HKD 11,614 thousand in 2023, up from HKD 9,798 thousand in 2022[40] - No underwriting commitments were recorded as of December 31, 2023, compared to HKD 1,755 million in 2022[41] Corporate Governance and Shareholder Meetings - The company complied with all corporate governance code provisions except for the absence of the board chairman at the 2023 annual general meeting due to other official duties[64] - The company will suspend share transfer registration from May 17 to May 22, 2024, to determine shareholders' rights to attend and vote at the annual general meeting[63] - No repurchase, sale, or redemption of listed securities was conducted by the company or its subsidiaries during the year ending December 31, 2023[64] Accounting Policy Changes - The company changed its accounting policy for long service payment liabilities following the HKICPA guidance on the cancellation of the MPF-LSP offset mechanism, effective from May 1, 2025[15] - The accounting policy change resulted in a compensatory profit adjustment for service costs up to June 2022, with no material impact on the consolidated financial position as of December 31, 2022 and 2023[15] Leverage and Debt Ratios - Nominal leverage ratio increased to 6.39x (2022: 5.44x), and debt-to-equity ratio decreased to 1.06x (2022: 1.09x)[57] Foreign Exchange and Risk Management - The company's foreign exchange risk is primarily managed through back-to-back transactions with external counterparties, with minimal impact from other foreign currencies[60] Share Issuance and Capital Structure - The company's issued shares remained unchanged at 9,553,994,707 shares for the year ending December 31, 2023[59] - The company has a HKD 35 billion medium-term note program and a USD 15 billion guaranteed structured note program, with outstanding notes of HKD 7.9 billion and USD 6 billion respectively[58] Acquisitions and Disposals - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures were made during the year ending December 31, 2023[59] Commission and Fee Income - Commission and fee income decreased by 20% to HKD 690 million (2022: HKD 866 million), with brokerage income down 9% to HKD 437 million (2022: HKD 481 million) and corporate finance income down 39% to HKD 142 million (2022: HKD 233 million)[51] - Brokerage commission revenue decreased to 436,777 thousand HKD in 2023 from 481,265 thousand HKD in 2022[23] - Placement, underwriting, and sub-underwriting commission revenue dropped to 141,754 thousand HKD in 2023 from 233,437 thousand HKD in 2022[23] - Financial product fee income declined to 55,224 thousand HKD in 2023 from 79,392 thousand HKD in 2022[23] - Interest income from customer and counterparty financing decreased to 452,244 thousand HKD in 2023 from 524,366 thousand HKD in 2022[23] Comprehensive Income and Equity - Total comprehensive income for the year was HKD 225,880 thousand in 2023, a significant increase from HKD 33,847 thousand in 2022[4] - Equity increased to 14,961,998 thousand HKD in 2023 from 14,936,196 thousand HKD in 2022[7] - Retained earnings rose to 5,135,203 thousand HKD in 2023 compared to 5,114,186 thousand HKD in 2022[7] - Non-controlling interests decreased to 122,525 thousand HKD in 2023 from 129,497 thousand HKD in 2022[7] Return on Equity - Return on equity improved by 0.9 percentage points to 1.4% in 2023 from 0.5% in 2022[3] Listing and Historical Information - The company's shares were listed on the Hong Kong Stock Exchange on July 8, 2010[8]
国泰君安国际(01788) - 2023 - 年度业绩