Glonghui, March 21 | Value Partners Group (00806.HK) announced that as of the end of December 2023, the company's asset management scale was US$5.6 billion, a slight decrease of 9% from US$6.1 billion at the end of 2022, mainly affected by the weak market environment and the safe-haven mentality of some investors. As a result, the company's total management fee revenue in 2023 was reduced to HK$467 million, a year-on-year decrease of 15%.
Despite the challenging period, the Group recorded a net profit of HK$23 million and a loss of HK$544 million in 2022. The improvement in performance was mainly due to the investment income from the Group's own capital investment (mainly the initial investment capital investment of its funds) and the reduction in total expenses offset the reduction in management fee income.
Despite market difficulties, the company received a total subscription amount of $1.2 billion in 2023, due to the strong performance of some of the company's investment strategies compared to peers. Specifically, the company's stocks and multi-asset strategic funds have strong market demand. The company's flagship fund, Value Partners High Yield Equity Fund, an authorized account for a European client (which mainly invests in Chinese stocks), and the company's Asian Multi-Asset Income Strategy Fund continued to record net inflows.
As at 31 December 2023, the Group's balance sheet remained stable, with a net asset value of HK$3.5 billion, including cash and cash equivalents of HK$1.6 billion and investments of HK$2.7 billion, offset by a special dividend payable of HK$900 million. The company will continue to carefully manage its balance sheet to meet future business needs, as well as the company's long-term strategic development plans and initiatives.