Core Insights - The global quantum technology industry is experiencing rapid growth, with major tech companies like Nvidia investing in quantum computing startups such as PsiQuantum, indicating a fusion revolution between traditional computing giants and quantum newcomers [1] - The event "Financial Empowerment • Quantum Future" hosted by Guofu Quantum Innovation Co., Ltd. in Hong Kong gathered industry experts to discuss the current state and commercial applications of quantum technology in China, highlighting the competitive landscape between China and the U.S. in quantum technology [1][2] Group 1: Event Overview - The forum attracted nearly a hundred experts, investment representatives, and industry leaders in quantum technology, featuring presentations from key figures such as Dr. Xiang Jingen, Mr. Li Chunguang, and Dr. Zhang Wenzhuo, who provided insights into quantum technology and its integration with finance [2][3] - Guofu Quantum showcased unreleased technology products, marking a significant breakthrough in the integration of quantum technology and financial innovation, with plans for an official product launch soon [2] Group 2: Key Presentations - Dr. Xiang Jingen elaborated on the principles, development background, and applications of quantum computing, presenting the innovative practices of Liangxuan Technology, which is a leader in the global quantum computing space [3] - Mr. Li Chunguang outlined Guofu Quantum's future technology strategy centered around "Quantum+", aiming to drive technological breakthroughs and industry transformation through cross-disciplinary empowerment [4] - Dr. Zhang Wenzhuo discussed the full-chain innovation from basic theory to commercial application, introducing products like quantum random number cloud services and quantum random private key generation wallets, expected to undergo public testing next month [4] Group 3: Industry Outlook - The forum emphasized the paradigm shift expected in the next five years, where quantum advantages will transition from laboratories to industrial applications, particularly in sectors like pharmaceuticals, finance, and artificial intelligence [5] - Guofu Quantum's strategy aligns with China's 14th Five-Year Plan for quantum technology development, aiming to create a collaborative ecosystem that integrates quantum computing, communication, blockchain, and AI [5][6] - The company invites global partners, including those from Hong Kong, to explore opportunities in the commercialization of quantum technology and to build a new ecosystem of quantum productivity [6]

Core Viewpoint - In 2025, amidst rising global trade barriers and tariff disputes, Hong Kong's strategic position as an international free trade port and financial hub is increasingly highlighted, with Guofu Quantum (00290.HK) launching an art and collectibles auction business to create a new asset allocation channel for global investors that combines risk-hedging attributes and appreciation potential [1] Group 1: Business Development - Guofu Quantum's art and collectibles auction business aligns with the current global trade situation, capturing the opportunity for value reconstruction of non-physical assets [2] - The recent "Guofu Quantum Spring Auction" achieved a 100% transaction rate for 10 lots, showcasing the market's demand for scarce cultural assets and the company's operational capabilities leveraging Hong Kong's advantages [2] - The auction featured notable works such as "Andy Warhol Portrait" by Zeng Fanzhi and "Seated Bathing Woman" by Pierre-Auguste Renoir, indicating strong market interest in high-value art pieces [2] Group 2: Technological Integration - Guofu Quantum's strategic investment in the digital asset platform RTree Finance incorporates blockchain and Web 3.0 technologies into its auction business, enhancing the valuation process through AI dynamic pricing models [3] - The blockchain system provides permanent records of artworks, addressing authenticity issues in the art market, thus positioning Guofu Quantum to potentially disrupt leading auction houses in Asia [3] Group 3: Security and Compliance - The integration of quantum technology in the auction process aims to establish a robust security framework for asset transactions, addressing investor concerns regarding asset safety and compliance [4] - Future collaborations with quantum technology firms may introduce advanced encryption methods to protect ownership certificates and transaction records, enhancing the security of digital art transactions [4] Group 4: Future Prospects - If successful in implementing these technological integrations, Guofu Quantum could provide superior security for high-net-worth clients and become a core infrastructure for Hong Kong's international cultural relic trading center [5] - The company holds various licenses and qualifications, suggesting potential expansion into cross-border equity auctions and distressed asset disposals, tapping into trillion-dollar markets [6] - Guofu Quantum's art auction business represents a broader paradigm shift in the integration of capital, technology, and culture, potentially redefining Hong Kong's role in global trade dynamics [7]

Financial Statements and Compliance - The company's interim financial information for the six-month period ended 30 September 2024 includes condensed consolidated statements of financial position, profit or loss, changes in equity, and cash flows[13] - The financial statements are prepared in compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" (HKAS 34) issued by the Hong Kong Institute of Certified Public Accountants[13] - The company's financial information is subject to an independent review report, which is addressed to the board of directors[13] - The company has adopted all new and revised Hong Kong Financial Reporting Standards (HKFRSs) effective from 1 April 2024, with no significant changes to accounting policies or financial statements[40] Company Overview and Structure - The company's registered office is located in the Cayman Islands, with its head office and principal place of business in Hong Kong[7] - The company's principal bankers include Chong Hing Bank Limited, China Construction Bank (Asia) Corporation Limited, and Shanghai Pudong Development Bank Co., Ltd[9] - The company's stock code is 290 and its website is www.290.com.hk[9] - The company's board of directors includes executive and non-executive directors, with some members retiring on 12 August 2024[4] - The company's auditor is Zhonghui Anda CPA Limited, a certified public accounting firm[7] - The company's share registrar and transfer office in Hong Kong is Union Registrars Limited[9] Financial Performance and Results - Revenue for the six months ended 30 September 2024 increased to HK$22,016 thousand, up from HK$18,349 thousand in the same period in 2023[20] - Net gains on investments at fair value through profit or loss for the six months ended 30 September 2024 were HK$22,016 thousand, compared to HK$18,349 thousand in 2023[20] - Staff costs for the six months ended 30 September 2024 increased significantly to HK$34,225 thousand, up from HK$16,839 thousand in 2023[20] - Loss before tax for the six months ended 30 September 2024 was HK$10,912 thousand, an improvement from HK$17,423 thousand in 2023[20] - Total revenue for the six months ended 30 September 2024 was HK$22,016 thousand, compared to HK$18,349 thousand in the same period in 2023, representing an increase of 20%[81] - Revenue from securities brokerage business decreased to HK$8,103 thousand in 2024 from HK$10,469 thousand in 2023, a decline of 22.6%[81] - Income from equity investment business was HK$1,534 thousand in 2024, compared to no income in 2023[81] - Interest revenue from money lending business surged to HK$8,439 thousand in 2024 from HK$1,837 thousand in 2023, a significant increase of 359.5%[81] - The securities brokerage and margin financing segment generated the highest revenue of HK$8,121 thousand, followed by the money lending segment with HK$8,439 thousand[88] - The equity investment segment reported a net gain of HK$12,571 thousand on investments at fair value through profit or loss[88] - The company recorded a loss before tax of HK$10,912 thousand for the six months ended 30 September 2024[88] - The asset management segment contributed HK$1,941 thousand in revenue, a decrease from HK$2,624 thousand in 2023[81] - The consultancy and insurance brokerage segment saw a slight increase in revenue to HK$344 thousand in 2024 from HK$306 thousand in 2023[81] - The corporate finance segment's revenue declined to HK$1,297 thousand in 2024 from HK$1,701 thousand in 2023[81] - Total revenue for the six months ended 30 September 2024 was HK$18.349 million, with a net loss of HK$9.661 million from investments at fair value through profit or loss[90] - Segment results showed a net loss of HK$19.021 million, with the largest loss from the equity investment segment at HK$14.115 million[90] - Interest revenue from financial institutions surged to HK$8.627 million, up from HK$1.476 million in the same period last year[99] - The company recognized no government grants for the six months ended 30 September 2024, compared to HK$756,000 in the same period last year[100] - Finance costs decreased to HK$377,000, down from HK$1.299 million in the previous year, primarily due to lower interest on corporate bonds[102] - The company's total operating expenses for the six months ended 30 September 2024 were HK$14,372,000, compared to HK$7,130,000 in the same period in 2023, representing a significant increase[106] - Staff costs, including salaries and allowances, increased to HK$34,225,000 in 2024 from HK$16,839,000 in 2023, driven by higher salaries and equity-settled share-based payments[110] - The company reported a loss before tax of HK$10,909,000 for the six months ended 30 September 2024, with no dividend paid or proposed during the period[123][118] Assets and Liabilities - Investments at fair value through profit or loss as of 30 September 2024 stood at HK$257,649 thousand, up from HK$79,769 thousand as of 31 March 2024[23] - Loan and trade receivables as of 30 September 2024 increased to HK$175,784 thousand, compared to HK$99,997 thousand as of 31 March 2024[23] - Bank balances and cash (general) as of 30 September 2024 decreased to HK$121,241 thousand, down from HK$289,257 thousand as of 31 March 2024[23] - Trade payables as of 30 September 2024 decreased to HK$204,723 thousand, compared to HK$276,025 thousand as of 31 March 2024[23] - Intangible assets as of 30 September 2024 were HK$36,072 thousand, up from zero as of 31 March 2024[23] - Prepaid considerations for investments as of 30 September 2024 were HK$118,471 thousand, compared to zero as of 31 March 2024[23] - Net current assets increased to HK$503,686 thousand from HK$573,448 thousand[26] - Total liabilities decreased to HK$1,052,784 thousand from HK$801,539 thousand[26] - Net assets increased to HK$1,041,887 thousand from HK$786,843 thousand[26] - Share capital increased to HK$711,842 thousand from HK$632,625 thousand[26] - Reserves increased to HK$330,045 thousand from HK$154,218 thousand[26] - Total equity increased to HK$1,041,887 thousand from HK$786,843 thousand[26] - Total segment assets increased to HK$842.641 million, with equity investment assets growing significantly to HK$399.198 million[96] - Consolidated total assets rose to HK$1.269 billion, while consolidated total liabilities decreased to HK$227.748 million[96] - Unlisted investments increased to HK$113,617 thousand as of 30 September 2024, up from HK$112,898 thousand as of 31 March 2024[133] - Equity securities listed in Hong Kong increased significantly to HK$209,691 thousand as of 30 September 2024, compared to HK$86,908 thousand as of 31 March 2024[139] - Total loan and trade receivables – current rose to HK$175,784 thousand as of 30 September 2024, up from HK$99,997 thousand as of 31 March 2024[140] - Trade receivables from securities brokerage business amounted to HK$1,529 thousand as of 30 September 2024, compared to zero as of 31 March 2024[148] - The carrying amount of trade receivables (excluding margin and cash clients) was HK$3,994 thousand as of 30 September 2024, up from HK$2,351 thousand as of 31 March 2024[157] - Loan receivables – current surged to HK$171,705 thousand as of 30 September 2024, compared to HK$97,076 thousand as of 31 March 2024[140] - The Group's investments at fair value through profit or loss increased to HK$441,797 thousand as of 30 September 2024, up from HK$253,273 thousand as of 31 March 2024[139] - Trade receivables from other businesses stood at HK$5,987 thousand as of 30 September 2024, compared to HK$5,530 thousand as of 31 March 2024[148] - The Group's share of net assets in unlisted investments was HK$104,214 thousand as of 30 September 2024, slightly up from HK$103,495 thousand as of 31 March 2024[133] - Total loan receivables as of 30 September 2024 amounted to HK$171,705,000, an increase from HK$110,576,000 as of 31 March 2024[167] - Trust bank balances and cash for client funds amounted to HK$204,723 thousand, classified under current assets in the consolidated financial position statement[182] - Trade payables to margin and cash clients totaled HK$276,025 thousand, with HK$266,924 thousand attributed to margin and cash clients and HK$9,101 thousand to HKSCC[184] - Trade payables to HKSCC within 30 days amounted to HK$9,101 thousand as of September 30, 2024[192] Cash Flow - Net cash used in operating activities was HK$85,576 thousand[33] - Net cash used in investing activities was HK$323,773 thousand[33] - Net cash generated from financing activities was HK$240,419 thousand[33] - Cash and cash equivalents decreased by HK$168,930 thousand[33] Investments and Fair Value Measurements - The company holds cryptocurrencies, including Bitcoin, accounted for as intangible assets under the cost model, with an indefinite useful life and subject to annual impairment testing[40] - The company's financial assets and liabilities are measured at fair value, categorized into three levels based on observable inputs: Level 1 (quoted prices), Level 2 (observable inputs), and Level 3 (unobservable inputs)[42] - The company recognizes transfers between fair value hierarchy levels as of the date of the event or change in circumstances causing the transfer[42] - Recurring fair value measurements at 30 September 2024 totaled HK$441,797 thousand, with Level 1 at HK$209,713 thousand, Level 2 at HK$41,143 thousand, and Level 3 at HK$190,941 thousand[46] - Total recurring fair value measurements at 31 March 2024 were HK$253,273 thousand, with Level 1 at HK$102,032 thousand, Level 2 at HK$32,349 thousand, and Level 3 at HK$118,892 thousand[46] - Level 3 fair value measurements increased from HK$118,892 thousand at 31 March 2024 to HK$190,941 thousand at 30 September 2024, driven by additions of HK$105,124 thousand and disposals of HK$24,233 thousand[50] - Fund investments under Level 2 fair value measurements increased from HK$32,349 thousand at 31 March 2024 to HK$41,143 thousand at 30 September 2024[59] - Unlisted equity instruments under Level 3 fair value measurements increased from HK$79,769 thousand at 31 March 2024 to HK$108,800 thousand at 30 September 2024[70] - The company's chief financial officer is responsible for fair value measurements, reporting directly to the board of directors, with valuation discussions held at least twice a year[55] - The company has a dedicated team managing Level 3 financial instrument valuations on a case-by-case basis, using valuation techniques at least twice a year[56] - Fund investments under Level 2 fair value measurements were valued using the share of net assets method, with no observable inputs (N/A)[59] - Unlisted equity instruments under Level 3 fair value measurements were valued using recent arm's length transaction prices, with no observable inputs (N/A)[70] - The company's Level 3 fair value measurements include gains or losses recognized in profit or loss, with a net loss of HK$16,974 thousand for the six months ended 30 September 2024[50] - The company invested HK$36,001,000 in cryptocurrencies during the six months ended 30 September 2024, with no such investments in the same period in 2023[128] Loans and Receivables - The company has seven outstanding loans as of 30 September 2024, compared to five as of 31 March 2024[167] - One secured loan with an outstanding principal of HK$13,500,000 bears an interest rate of 8% per annum and is due for repayment within twelve months[167] - Two unsecured loans with an aggregate outstanding principal of HK$75,250,000 bear an interest rate of 15% per annum and are due for repayment within twelve months[170] - One secured mortgage loan with an outstanding principal of HK$5,000,000 is overdue and bears an interest rate of 13% per annum[170] - One guaranteed loan with an outstanding principal of HK$3,000,000 is overdue and bears an interest rate of 12% per annum[170] - One new secured loan with an outstanding principal of HK$25,000,000 bears an interest rate of 12% per annum and is due for repayment within twelve months[170] - One new unsecured loan with an outstanding principal of HK$50,000,000 bears an interest rate of 8% per annum and is due for repayment within twelve months[170] - The company is actively pursuing legal actions to recover overdue loans, including issuing demand letters and initiating civil actions[172] - The ageing analysis of loan receivables shows HK$50,000,000 due within 30 days, HK$100,250,000 due within 90 to 365 days, and HK$19,809,000 overdue for more than 365 days as of 30 September 2024[175] Share Issuance and Options - The company issued 263,593,577 ordinary shares at HK$0.20 each in August 2023, raising HK$52,718,000[197] - In February 2024, the company issued 4,744,684,386 ordinary shares at HK$0.10 each through a rights issue, raising HK$474,469,000[197] - In July 2024, the company issued 273,776,000 ordinary shares at HK$0.90 each, raising HK$246,398,000[197] - In July 2024, the company issued 518,400,000 ordinary shares under a share award scheme[197] - The Company's Share Option Scheme allows for a maximum of 10% of total shares in issue to be granted as unexercised share options, based on the total number of shares at the 2021 annual general meeting[200] - Each eligible participant under the Share Option Scheme can be granted up to 1% of the Company's shares in issue within any 12-month period[200] - Any share options granted to a substantial shareholder or independent non-executive director exceeding 0.1% of the Company's shares in issue or HK$5,000,000 in value require prior shareholder approval[200] Taxation - Hong Kong Profits Tax was provided at a rate of 16.5% on estimated assessable profit for the six months ended 30 September 2024, with no provision made for the same period in 2023[116] - No provision for PRC Enterprise Income Tax was made for the six months ended 30 September 2024, as the company did not generate any estimated assessable profit subject to PRC EIT Law during that period[117] Property and Equipment - The company acquired property and equipment worth HK$4,469,000 and right-of-use assets worth HK$644,000 during the six months ended 30 September 2024, compared to no acquisitions in the same period in 2023[127] Management Discussion and Analysis - The company's interim report for 2024 includes a management discussion and analysis section[3] Shareholding and Voting Rights - The Group holds 25.00% of the nominal value of issued capital and 33.00% of voting rights in Starlight Financial Holdings Limited as of 30 September 2024[136]

Revenue and Income - Revenue for the six months ended September 30, 2024, was HKD 22,016,000, an increase of 20.1% compared to HKD 18,349,000 for the same period in 2023[3] - Total revenue for the six months ended September 30, 2024, was HKD 22,016,000, an increase from HKD 18,349,000 in the same period of 2023, representing a growth of approximately 20.1%[13] - Revenue from securities brokerage and margin financing was HKD 8,121,000, while corporate finance revenue was HKD 1,297,000, and asset management revenue was HKD 1,941,000 for the six months ended September 30, 2024[18] - The group reported a total income from customer contracts of HKD 13,559,000, down from HKD 15,100,000 in the previous year, indicating a decline of about 10.2%[13] - The net interest income from lending activities was HKD 8,439,000, compared to HKD 1,837,000 in the previous year, showing a significant increase[13] - The securities brokerage and margin financing business generated revenue of HKD 10,627,000, a decrease of 10.55% from HKD 11,881,000 in the same period last year[59] - The corporate finance segment reported a revenue decrease of 23.75%, down to HKD 1,297,000 from HKD 1,701,000 in the same period last year[60] - The asset management segment generated revenue of HKD 1,941,000, down 26.03% from HKD 2,624,000 year-on-year[77] - The equity investment segment generated revenue of HKD 1,534,000, with no revenue reported in the previous year[18] - The equity investment segment recorded revenue of HKD 14,105,000, a 46.00% increase compared to a loss of HKD 9,661,000 in the same period last year[79] Expenses and Losses - Employee costs rose to HKD 34,225,000, up 103.5% from HKD 16,839,000 in the prior year, indicating increased operational expenses[3] - The company reported a pre-tax loss of HKD 10,912,000, an improvement from a loss of HKD 17,423,000 in the same period last year[3] - The group incurred a loss before tax of HKD 10,909,000 for the six months ended September 30, 2024, compared to a loss of HKD 17,425,000 in the same period of 2023[21] - The group reported a pre-tax loss of HKD 14,372,000 for the six months ended September 30, 2024, compared to HKD 7,130,000 for the same period in 2023, indicating a significant increase in losses[29] - The total operating expenses for the six months ended September 30, 2024, amounted to HKD 34,225,000, up from HKD 16,839,000 in the previous year, reflecting a 103% increase[29] - The group incurred a loss attributable to owners of the company of HKD 10,909,000 for the six months ended September 30, 2024, compared to HKD 17,425,000 for the same period in 2023[35] - The basic and diluted loss per share improved to HKD (0.2) from HKD (1.3) year-on-year, showing a positive trend in loss reduction[3] - The basic and diluted loss per share for the period was HKD 0.002, compared to HKD 0.013 in the same period last year[58] Assets and Liabilities - Total assets as of September 30, 2024, amounted to HKD 720,537,000, a decrease from HKD 864,100,000 as of March 31, 2024[5] - The company's net asset value increased to HKD 1,041,887,000 from HKD 786,843,000, reflecting a strong growth in equity reserves[7] - The company’s cash and cash equivalents decreased to HKD 325,589,000 from HKD 565,995,000, indicating a reduction in liquidity[5] - The total assets of the group as of September 30, 2024, amounted to HKD 1,269,635,000, up from HKD 1,092,191,000 as of March 31, 2024, reflecting a growth of approximately 16.2%[26] - The total liabilities of the group as of September 30, 2024, were HKD 227,748,000, down from HKD 305,348,000 in the previous year, indicating a decrease of approximately 25.4%[25] - The group’s total receivables amounted to HKD 171,705,000 as of September 30, 2024, compared to HKD 110,576,000 as of March 31, 2024[58] - The group’s total liabilities included HKD 44,417,000 in secured current liabilities as of September 30, 2024, compared to HKD 5,063,000 as of March 31, 2024[58] - The group’s non-current secured liabilities were nil as of September 30, 2024, compared to HKD 13,500,000 as of March 31, 2024[58] - The capital debt ratio as of September 30, 2024, was 1.83%, a decrease from 3.05% as of March 31, 2024, primarily due to the repayment of corporate bonds[109] - The group's total liabilities to total assets ratio was 17.94% as of September 30, 2024, down from 27.96% as of March 31, 2024[109] Investments and Acquisitions - The group held investments at fair value amounting to HKD 441,797,000 as of September 30, 2024, with a net investment income of approximately HKD 15,158,000[111] - The investment in Jin Hai Medical Technology Co., Ltd. was valued at HKD 155,210,000, representing 12.22% of the group's total assets as of September 30, 2024[113] - The group has a significant investment in Starfire Group, with a book value of HKD 98,551,000, accounting for 7.76% of total assets as of September 30, 2024[114] - The company agreed to acquire 2,751,339,130 shares of Huake Intelligent Investment Limited for HKD 302,647,304, with payment made through the issuance of 340,053,151 shares at an issue price of approximately HKD 0.89 per share[99] - Following the acquisition, the company holds approximately 29.13% of Huake Intelligent Investment Limited, which has become an associate company[100] - The company completed the acquisition of 3,064,454,515 shares, representing approximately 29.13% of the target company's equity on October 18, 2024[124] - The acquisition was financed through the issuance of 340,053,151 shares at an issue price of approximately HKD 0.89 per share, totaling a capital value of HKD 34,005,315.10[124] Fundraising Activities - The company announced a rights issue to issue up to 4,744,684,386 shares at a subscription price of HKD 0.10 per share, representing a discount of approximately 9.09% from the closing price of HKD 0.110 on October 17, 2023[83] - The total amount raised from the rights issue was approximately HKD 474.47 million, with a net amount of approximately HKD 470.82 million after deducting related expenses[86] - The funds from the rights issue will be allocated as follows: HKD 194 million for operational funding, HKD 140 million for seed capital in asset management, and HKD 56.82 million for general operational expenses[87] - The rights issue shares represent 300% of the existing issued share capital as of the announcement date and 75% of the enlarged issued share capital post-issue[86] - The company aims to enhance its capital base and operational flexibility through this fundraising activity, which is deemed in the best interest of the company and its shareholders[85] - The net price per rights share is approximately HKD 0.0997, with a total nominal value of approximately HKD 474,468,438.60[84] - The company has reassessed the use of proceeds from the rights issue to better utilize financial resources and seize other business opportunities[86] - The rights issue became unconditional on February 6, 2024, indicating a successful fundraising effort[86] - The company successfully placed a total of 273,776,000 shares at a price of HKD 0.90 per share, representing approximately 4.15% of the enlarged issued share capital after the placement[91] - The total amount raised from the placement was HKD 246.40 million, with a net amount of approximately HKD 243.90 million after expenses[96] - The net issue price per share from the placement was approximately HKD 0.89, with a total nominal value of HKD 27,377,600 for the shares[95] - The funds raised will be allocated as follows: HKD 142 million for existing business operations, HKD 50 million for equity investment projects, HKD 25 million for fintech business development, and HKD 26.90 million for general working capital[97] Strategic Focus and Future Plans - The company plans to invest HKD 25 million in clean energy and HKD 5 million in cryptocurrency investments as part of its new strategic initiatives[89] - The company aims to enhance its capital scale and influence in the capital market while ensuring compliance with liquidity regulations for its licensed subsidiaries[104] - The company will actively respond to national policies supporting mergers and acquisitions in the technology sector and maintain a strong development momentum in cross-border transactions[101] - The company has established guidelines for collecting overdue loans, with actions escalating after 30 days of non-payment[71] - The management assesses credit risk based on various factors, including collateral ratios and borrower responses to repayment requests[73] - The company applies a general method to measure expected credit losses for receivables[72] - The management classifies receivables into three stages based on the increase in credit risk and potential impairment[75] - The company plans to continue focusing on technology innovation and explore investment opportunities in emerging industries such as Web 3.0 and quantum computing[103]

[Corporate Information](index=2&type=section&id=Corporate%20Information) [Board of Directors and Committee Members](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board and committees saw significant changes, with new appointments and resignations, ensuring independent governance through core committees - Mr. Chan Kin Sang was appointed Chairman of the Board, authorized representative, and Chairman of the Nomination Committee on **February 28, 2024**[227](index=227&type=chunk)[189](index=189&type=chunk) - Dr. Lau Chi Wai resigned as Executive Director, Chairman of the Board, authorized representative, Chairman of the Nomination Committee, and member of the Remuneration Committee on **February 28, 2024**[229](index=229&type=chunk)[189](index=189&type=chunk) - The chairpersons of the company's Audit, Remuneration, and Nomination Committees are Mr. Chiu Kung Chik and Mr. Chan Kin Sang respectively, with most members being independent non-executive directors[245](index=245&type=chunk) [Professional Parties](index=5&type=section&id=Professional%20Parties) The company appointed ZHONGHUI ANDA CPA Limited as its new auditor and maintains banking relationships with several financial institutions - The company appointed **ZHONGHUI ANDA CPA Limited** as its new auditor on **October 30, 2023**, succeeding **BDO Limited** which resigned[247](index=247&type=chunk)[230](index=230&type=chunk) - The company's principal bankers include Chong Hing Bank Limited, China Construction Bank (Asia) Corporation Limited, and Shanghai Pudong Development Bank Co., Ltd. Hong Kong Branch[248](index=248&type=chunk) [Chairman's Statement](index=7&type=section&id=Chairman%27s%20Statement) [Overall Performance](index=8&type=section&id=Overall%20Performance) The company achieved significant performance improvement with revenue growth and narrowed net loss, alongside a strengthened balance sheet and reduced debt ratio Key Performance Indicators for FY2024 | Indicator | FY2024 | Year-on-Year Change | | :--- | :--- | :--- | | Total Revenue (after deducting net investment losses) | 45.98 million HKD | +106.05% | | Net Loss | 30.68 million HKD | -47.87% | | Securities Business Revenue (after deducting net investment losses) | 37.05 million HKD | +406.92% | Balance Sheet Summary as of FY2024 End | Indicator | March 31, 2024 | Change from Previous Year-End | | :--- | :--- | :--- | | Total Assets | 1.092 billion HKD | +129.57% | | Total Equity | 787 million HKD | +165.40% | | Debt Ratio | 27.96% | -9.73 percentage points | | Cash and Cash Equivalents | 289 million HKD | - | [Group Strategy and Operations](index=9&type=section&id=Strategy%20and%20Operation%20of%20the%20Group) The Group advanced its Web 3.0 strategy through R&D and investments, while successful fundraising strengthened its capital structure for future fintech and emerging technology expansion - The company further advanced its business layout in the Web 3.0 sector, heavily investing in technology R&D, and began investing in and reserving cryptocurrencies and compliant virtual asset funds, laying the foundation for a comprehensive Web 3.0 strategic transformation[251](index=251&type=chunk)[240](index=240&type=chunk) - In the innovation investment sector, the company leveraged its "investment + investment banking + management" synergy to complete investments in innovative enterprises like **MaiCapital** and actively empower its investees[261](index=261&type=chunk)[262](index=262&type=chunk) - The company successfully completed two fundraising activities (general mandate placing and rights issue), raising net proceeds of approximately **HKD 52.64 million** and **HKD 471 million** respectively, used for optimizing the balance sheet structure, enhancing capital adequacy, and introducing strategic shareholders[265](index=265&type=chunk)[295](index=295&type=chunk) - Looking ahead, the company will adhere to the philosophy of "investment driving investment banking, innovation feeding back into tradition," continuously expanding its capital scale and accelerating its development into a comprehensive, first-class fintech group[296](index=296&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) [Results](index=13&type=section&id=Results) The Group's revenue and net investment losses increased, while the annual loss significantly narrowed due to higher licensed business income, other income, and reduced costs Performance Overview | Indicator | FY2024 | FY2023 | | :--- | :--- | :--- | | Revenue and Net Investment Losses | 45.98 million HKD | 22.31 million HKD | | Annual Loss | 30.68 million HKD | 58.86 million HKD | | Basic and Diluted Loss Per Share | 0.91 HK cents | 2.84 HK cents | - The improvement in loss is primarily attributable to: (i) increased licensed business revenue; (ii) increased other income (mainly including bargain purchase gain from an associate and interest income from financial institutions); (iii) reduced expected credit losses on loans and trade receivables; and (iv) decreases in both staff costs and finance costs[299](index=299&type=chunk)[301](index=301&type=chunk) [Business Review](index=14&type=section&id=Business%20Review) Securities brokerage and margin financing saw strong growth and profitability, while corporate finance and asset management experienced declines, and money lending improved its segment loss Summary of Segment Results (FY2024) | Business Segment | Revenue/Net Investment Change | Segment Profit/Loss | | :--- | :--- | :--- | | Securities Brokerage and Margin Financing | Net revenue approx. 37.05 million HKD (up 406.92%) | Profit approx. 8.57 million HKD (23 loss 12.43 million) | | Corporate Finance | Revenue approx. 4.72 million HKD (down 13.32%) | Loss approx. 2.79 million HKD (23 profit 14.45 million) | | Money Lending | Interest income approx. 4.54 million HKD (up 62.91%) | Loss approx. 0.48 million HKD (23 loss 3.01 million) | | Asset Management | Revenue approx. 4.78 million HKD (down 56.05%) | Loss approx. 1.26 million HKD (23 loss 0.09 million) | | Advisory and Insurance Brokerage | Revenue approx. 0.61 million HKD (down 24.85%) | Loss approx. 0.20 million HKD (23 loss 0.07 million) | | Equity Investment | Net revenue and investment loss approx. 3.45 million HKD | Loss approx. 7.24 million HKD (23 loss 5.15 million) | [Fundraising Activities](index=21&type=section&id=Fundraising%20Activities) The Group successfully raised significant capital through share placement and rights issue, optimizing its capital structure and reallocating funds towards core businesses and strategic new investments - In **August 2023**, the company placed **263.6 million new shares** to Mr. Wang Tao at **HKD 0.20 per share**, raising net proceeds of approximately **HKD 52.64 million**[367](index=367&type=chunk)[419](index=419&type=chunk) - In **February 2024**, the company completed a "one-for-three" rights issue at **HKD 0.10 per share**, issuing approximately **4.745 billion shares** and raising net proceeds of approximately **HKD 471 million**[400](index=400&type=chunk)[431](index=431&type=chunk) - The use of proceeds from the rights issue was revised in **March 2024**, reallocating funds to core businesses such as money lending, asset management, and corporate finance, and adding investment plans in areas like investment immigration, clean energy, and cryptocurrencies[432](index=432&type=chunk)[409](index=409&type=chunk) - All three tranches of convertible bonds historically issued to Jiangxian Capital have been fully utilized or repaid, with the conversion price of the third tranche adjusted due to share consolidation[455](index=455&type=chunk)[483](index=483&type=chunk)[5](index=5&type=chunk) [Liquidity and Financial Resources](index=38&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's financial position is strong with improved liquidity, significantly reduced debt ratios, and no bank borrowings, primarily funded by operating and financing activities Financial Position Indicators (as of March 31) | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Current Assets | 864 million HKD | 369 million HKD | | Current Liabilities | 291 million HKD | 177 million HKD | | Current Ratio | 2.97 times | 2.08 times | | Cash and Cash Equivalents | 289 million HKD | 112 million HKD | | Capital-to-Debt Ratio | 3.05% | 12.40% | | Debt Ratio | 27.96% | 37.71% | | Bank Borrowings | None | None | - The Group primarily funds its operations through cash generated from operating activities and proceeds from financing activities[10](index=10&type=chunk)[493](index=493&type=chunk) [Human Resources and Other Matters](index=43&type=section&id=Human%20Resources%20and%20Other%20Matters) The Group's employee count increased, while staff costs decreased, with minimal foreign exchange risk and no pledged assets - As of **March 31, 2024**, the Group had **67 employees**, an increase from **55** in 2023[22](index=22&type=chunk)[502](index=502&type=chunk) - During the reporting year, relevant employee costs (excluding directors' emoluments) were approximately **HKD 29.97 million**, lower than **HKD 36.12 million** in 2023[22](index=22&type=chunk)[502](index=502&type=chunk) - The Group primarily conducts business transactions in **Hong Kong Dollars**, and the Board considers foreign exchange risk to be insignificant[195](index=195&type=chunk)[534](index=534&type=chunk) - As of **March 31, 2024**, the Group had no pledged assets[19](index=19&type=chunk)[21](index=21&type=chunk) [Biographical Details of Directors and Senior Management](index=43&type=section&id=Biographical%20Details%20of%20Directors%20and%20Senior%20Management) [Executive Directors](index=44&type=section&id=Executive%20Directors) Executive Director Ms. Sun Qing, appointed in April 2020, brings over two decades of financial, audit, and HR management expertise - Ms. Sun Qing, **63 years old**, was appointed Executive Director in **April 2020**, possessing over **20 years** of experience in the financial industry, including nearly two decades at Everbright Securities overseeing finance and human resources management[506](index=506&type=chunk)[196](index=196&type=chunk)[564](index=564&type=chunk) [Non-executive Directors](index=45&type=section&id=Non-executive%20Directors) The non-executive directors offer diverse expertise spanning investment banking, finance, economics, AI, blockchain, digital technology, asset management, and insurance - Mr. Han Hanting, **39 years old**, has over **ten years** of experience in investment banking[565](index=565&type=chunk)[52](index=52&type=chunk) - Dr. Nie Riming, **43 years old**, appointed in **October 2023**, possesses over **15 years** of experience in finance and economics, currently serving as Vice President of Shanghai Institute of Finance and Law[51](index=51&type=chunk)[567](index=567&type=chunk) - Mr. Li Chunguang, **39 years old**, appointed in **February 2024**, has extensive experience in artificial intelligence, blockchain, and digital technology[28](index=28&type=chunk)[53](index=53&type=chunk) - Mr. Hua Yang, **48 years old**, re-designated from Executive Director to Non-executive Director in **February 2024**, is highly experienced in asset management, equity investment, insurance, and business administration[54](index=54&type=chunk)[543](index=543&type=chunk) [Independent Non-executive Directors](index=48&type=section&id=Independent%20Non-executive%20Directors) Independent non-executive directors offer diverse expertise in law, investment banking, capital markets, economics, finance, financial management, and corporate finance - Mr. Chan Kin Sang, **72 years old**, is a practicing solicitor, notary public, and China Appointed Attesting Officer in Hong Kong, currently serving as Chairman of the Board[571](index=571&type=chunk)[573](index=573&type=chunk) - Mr. Chiu Kung Chik, **39 years old**, possesses extensive experience in investment banking, capital financing, and corporate restructuring, having previously worked at UBS AG[33](index=33&type=chunk)[547](index=547&type=chunk)[59](index=59&type=chunk) - Mr. Li Gaofeng, **50 years old**, holds a Master's degree in Economics, is a non-practicing Chinese Certified Public Accountant, and has extensive experience in the insurance and securities sectors[219](index=219&type=chunk)[548](index=548&type=chunk)[36](index=36&type=chunk) - Ms. Lui Mei Ka, **39 years old**, is a member of the Hong Kong Institute of Certified Public Accountants, with over **16 years** of experience in financial management and corporate finance, currently serving as CFO of Feiyu Technology[36](index=36&type=chunk) [Senior Management](index=51&type=section&id=Senior%20Management) The Co-CEOs, Mr. Yuan Tianfu and Mr. Zhang Huachen, bring extensive experience in financial industry, capital markets, fintech, and digital asset investments to lead the Group's strategy and operations - Mr. Yuan Tianfu, **35 years old**, appointed Co-Chief Executive Officer in **February 2024**, is responsible for the Group's strategic planning and investment businesses, with nearly **15 years** of experience in the financial industry[62](index=62&type=chunk)[63](index=63&type=chunk)[550](index=550&type=chunk) - Mr. Zhang Huachen, **32 years old**, appointed Co-Chief Executive Officer in **February 2024**, is responsible for investment operations and fintech projects, with over **10 years** of experience in capital markets[552](index=552&type=chunk)[553](index=553&type=chunk)[212](index=212&type=chunk) [Directors' Report](index=52&type=section&id=Directors%27%20Report) [Principal Activities and Business Review](index=53&type=section&id=Principal%20Activities%20and%20Business%20Review) The company, an investment holding entity, operates diverse financial service businesses, with no final dividend recommended, while upholding regulatory compliance and stakeholder relationships - The company is an investment holding company, and the principal activities of its major subsidiaries are set out in Note 32 to the consolidated financial statements[42](index=42&type=chunk)[45](index=45&type=chunk) - The Directors do not recommend the payment of a final dividend for the year ended **March 31, 2024**[46](index=46&type=chunk)[556](index=556&type=chunk) - The Group is committed to complying with applicable environmental laws and maintaining good relationships with employees and clients, with no significant disputes during the reporting period[65](index=65&type=chunk)[79](index=79&type=chunk)[84](index=84&type=chunk) [Share Option Scheme](index=55&type=section&id=Share%20Option%20Scheme) The 2021 Share Option Scheme, adopted to incentivize participants, saw 91.5 million options granted before its termination, with all previously granted options remaining valid - The **2021 Share Option Scheme** aims to grant share options to eligible participants (including employees, business partners, etc.) as an incentive or reward for their contributions[85](index=85&type=chunk)[108](index=108&type=chunk)[86](index=86&type=chunk) Share Option Movements in FY2024 | Category of Participants | Granted During Reporting Year (options) | Exercise Price (HKD) | Exercise Period | | :--- | :--- | :--- | :--- | | Directors and Chief Executive | 68,168,000 | 0.480 | April 1, 2025 to March 31, 2026 | | Other Employee Participants | 23,332,000 | 0.480 | April 1, 2025 to March 31, 2026 | | **Total** | **91,500,000** | | | - The **2021 Share Option Scheme** was terminated by shareholders' resolution on **May 29, 2024**, with no new options to be granted thereafter, but the **91,500,000** options previously granted remain valid and exercisable under the original terms[152](index=152&type=chunk)[153](index=153&type=chunk)[130](index=130&type=chunk) [Share Award Scheme](index=61&type=section&id=Share%20Award%20Scheme) A new share award scheme was adopted on June 3, 2024, to incentivize participants, with a 10-year validity and a maximum share issuance of 8.55% of issued capital, with no awards granted yet - The Share Award Scheme aims to recognize and incentivize eligible participants who contribute to the Group, including employees, directors (excluding independent non-executive directors), and service providers[155](index=155&type=chunk)[156](index=156&type=chunk) - The maximum number of shares that can be issued under the scheme is **541,093,796 shares**, representing approximately **8.55%** of the issued share capital as of the date of this annual report[139](index=139&type=chunk) - The vesting period for share awards is no less than **12 months**, and the scheme is valid for **10 years** from **June 3, 2024**[182](index=182&type=chunk)[145](index=145&type=chunk) - As of the date of this annual report, the company has not granted any share awards under the Share Award Scheme[172](index=172&type=chunk) [Directors and Interests](index=67&type=section&id=Directors%20and%20Interests) The report outlines board changes, confirms no other director interests beyond options, details major shareholder holdings, and discloses connected transactions with related parties in compliance with Listing Rules - During the reporting period, multiple changes occurred in the Board of Directors, including Dr. Lau Chi Wai's resignation as Executive Director and Chairman, and Mr. Chan Kin Sang's appointment as the new Chairman[189](index=189&type=chunk) Major Shareholders' Shareholdings (as of March 31, 2024) | Shareholder Name | Capacity | Total Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Dr. Lau Chi Wai | Beneficial Owner | 1,351,948,000 | 21.37% | | Mr. Wang Tao | Beneficial Owner | 1,134,374,308 | 17.93% | - During the reporting period, the company had continuing connected transactions (investment management agreement) with connected company **Huake Smart**, which was terminated on **December 29, 2023**[790](index=790&type=chunk)[791](index=791&type=chunk) - In **September 2023**, the company entered into an agreement with major shareholder Dr. Lau Chi Wai to acquire his interest in a target fund for approximately **HKD 12.48 million**, constituting a connected transaction[816](index=816&type=chunk) [Events after the Reporting Period](index=75&type=section&id=Events%20after%20the%20Reporting%20Period) Post-reporting period, the company adopted a new share award scheme, provided significant financial assistance, and acquired a target company's equity from a former chairman - The company adopted a new Share Award Scheme, approved by shareholders at the EGM on **May 29, 2024**, and effective on **June 3, 2024**[818](index=818&type=chunk)[824](index=824&type=chunk) - In **May 2024**, the company provided financial assistance (loan extensions) totaling **HKD 75.25 million** to two independent third-party borrowers[829](index=829&type=chunk) - On **June 12, 2024**, the company's wholly-owned subsidiary entered into an agreement with major shareholder Dr. Lau Chi Wai to acquire equity interest in a target company for **HKD 39.5 million**, constituting a connected transaction[830](index=830&type=chunk)[829](index=829&type=chunk) [Corporate Governance Report](index=81&type=section&id=Corporate%20Governance%20Report) [Board and Committees](index=83&type=section&id=Board%20and%20Committees) The company's Board and its committees diligently oversaw governance, financial reporting, and internal controls, confirming compliance with corporate governance codes and effective risk management systems - The company complied with all code provisions of the Corporate Governance Code throughout the reporting year[873](index=873&type=chunk)[876](index=876&type=chunk) Board and Committee Meeting Attendance (FY2024) | Committee | Number of Meetings | | :--- | :--- | | Board | 18 | | Audit Committee | 5 | | Remuneration Committee | 6 | | Nomination Committee | 6 | - The Board is responsible for performing corporate governance functions, including developing and reviewing company policies, monitoring director training, and compliance[1012](index=1012&type=chunk)[1039](index=1039&type=chunk) - The Board confirmed that it conducted an annual review of the Group's risk management and internal control systems and deemed them effective and sufficient for FY2024[1085](index=1085&type=chunk)[1008](index=1008&type=chunk) [Shareholders' Rights and Communication](index=103&type=section&id=Shareholders%27%20Rights%20and%20Communication) The company emphasizes transparent shareholder communication through various channels, outlining rights for director nomination and EGM requests, and maintaining a balanced dividend policy - The company has established a shareholder communication policy and communicates with shareholders through its corporate website, annual reports, and general meetings[1045](index=1045&type=chunk)[1065](index=1065&type=chunk) - Shareholders may nominate director candidates in accordance with Article 120 of the Company's Articles of Association[1051](index=1051&type=chunk)[1069](index=1069&type=chunk) - Shareholders holding not less than one-tenth of the paid-up capital of the company may request in writing to convene an extraordinary general meeting[1074](index=1074&type=chunk)[1102](index=1102&type=chunk) [Environmental, Social and Governance Report](index=110&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [ESG Governance and Strategy](index=111&type=section&id=ESG%20Governance%20and%20Strategy) The company's Board oversees ESG strategy, prioritizing anti-money laundering, customer privacy, and anti-corruption based on materiality assessment, with annual progress reporting - The Board holds overall responsibility for the Group's ESG strategy and reporting, annually reviewing ESG-related risks, opportunities, and targets[1129](index=1129&type=chunk) - Through materiality assessment, the company identified three highly important ESG issues: anti-money laundering and counter-terrorist financing, customer privacy protection, and anti-corruption and anti-fraud[1191](index=1191&type=chunk) [Employment and Labour Practices](index=128&type=section&id=Employment%20and%20Labour%20Practices) The Group, valuing talent, increased its workforce while significantly reducing turnover, prioritizing employee well-being and development through training, and strictly adhering to labor laws Employee Profile (as of March 31) | Category | 2024 | 2023 | | :--- | :--- | :--- | | Total Employees | 67 | 55 | | - Male | 38 | 34 | | - Female | 29 | 21 | | Overall Turnover Rate | 32.79% | 59.68% | - During the reporting period, approximately **26.44%** of employees received training, with an average training hour of approximately **3.04 hours** per employee[594](index=594&type=chunk)[1280](index=1280&type=chunk) - The Group strictly complies with relevant labor laws and regulations, prohibiting child and forced labor, and conducts regular inspections and reviews[596](index=596&type=chunk) [Environmental Practices](index=136&type=section&id=Environmental%20Practices) The Group is committed to environmental protection, with revised GHG and energy reduction targets, and participates in green finance, despite increased emission and energy densities due to normalized operations Greenhouse Gas Emissions (tCO2e) | Scope | 2024 | 2023 | | :--- | :--- | :--- | | Scope 1 (Direct) | 150.33 | 15.43 | | Scope 2 (Indirect - Energy) | 24.15 | 26.42 | | Scope 3 (Other Indirect) | 9.78 | 11.11 | | **Total** | **184.26** | **52.96** | | **Emission Intensity (tCO2e/employee)** | **2.75** | **0.96** | Energy Consumption | Energy Type | Unit | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Total Energy Consumption | kWh | 582,507.20 | 95,078.50 | | Total Energy Consumption Density | kWh/employee | 8,694.14 | 1,728.70 | - The Group maintained a low total non-hazardous waste disposal intensity of **0.02 tonnes per employee**, consistent with last year, and set a target to maintain this level in **2025**[611](index=611&type=chunk)[1350](index=1350&type=chunk) - The Group allocated **HKD 1 million** as green deposits to support certified green projects, such as green buildings and renewable energy[651](index=651&type=chunk)[652](index=652&type=chunk) [Independent Auditor's Report](index=157&type=section&id=Independent%20Auditor%27s%20Report) [Auditor's Opinion and Key Audit Matters](index=158&type=section&id=Auditor%27s%20Opinion%20and%20Key%20Audit%20Matters) The auditor issued an unmodified opinion on the financial statements, highlighting key audit matters related to Level 3 fair value investments and impairment testing of loans and trade receivables - The auditor believes that the consolidated financial statements present a true and fair view of the Group's financial position and performance in accordance with Hong Kong Financial Reporting Standards and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance[706](index=706&type=chunk)[759](index=759&type=chunk)[734](index=734&type=chunk) - Key Audit Matter One: Valuation of financial assets at fair value through profit or loss measured at Level 3 fair value. The balance of these investments as of **March 31, 2024**, was **HKD 119 million**, and their valuation involves significant judgment and estimation[737](index=737&type=chunk) - Key Audit Matter Two: Loans and trade receivables. The balance of these amounts as of **March 31, 2024**, was **HKD 113 million**, and their impairment testing has a significant impact on the financial statements and involves estimation[764](index=764&type=chunk) [Consolidated Financial Statements](index=162&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=163&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's revenue significantly increased, and its annual loss narrowed due to higher other income and cost control, despite a net investment loss Consolidated Statement of Profit or Loss Summary (For the year ended March 31) | Item (HKD '000) | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | 49,456 | 26,943 | | Net Investment Loss | (3,481) | (4,630) | | Net Other Income | 17,672 | 3,330 | | Loss Before Tax | (30,634) | (58,863) | | **Loss for the Year** | **(30,679)** | **(58,855)** | | Loss Per Share (HK cents) | (0.91) | (2.84) | [Consolidated Statement of Financial Position](index=164&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The Group's total assets and equity significantly increased, driven by current asset growth and share issuance, resulting in a substantially strengthened financial structure Consolidated Statement of Financial Position Summary (as of March 31) | Item (HKD '000) | 2024 | 2023 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 228,091 | 106,462 | | Current Assets | 864,100 | 369,299 | | **Total Assets** | **1,092,191** | **475,761** | | **Liabilities and Equity** | | | | Current Liabilities | 290,652 | 177,169 | | Non-current Liabilities | 14,696 | 2,123 | | **Total Liabilities** | **305,348** | **179,292** | | **Total Equity** | **786,843** | **296,469** | [Consolidated Statement of Cash Flows](index=167&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The Group experienced net cash outflows from operating and investing activities, offset by significant net cash inflow from financing activities, leading to an overall increase in cash and cash equivalents Consolidated Statement of Cash Flows Summary (For the year ended March 31) | Item (HKD '000) | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (121,718) | 21,814 | | Net Cash Used in Investing Activities | (188,568) | (69,233) | | Net Cash Generated from/(Used in) Financing Activities | 489,729 | (31,128) | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | **179,443** | **(78,547)** | | Cash and Cash Equivalents at Beginning of Year | 111,748 | 190,418 | | **Cash and Cash Equivalents at End of Year** | **289,257** | **111,748** | [Notes to the Consolidated Financial Statements](index=169&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail revenue recognition policies, segment performance, financial instrument valuations, and related party transactions, providing comprehensive insights into the Group's financial data - Revenue recognition: Securities brokerage commissions are recognized upon trade execution; revenue from advisory services such as asset management and corporate finance is recognized over time based on performance progress or upon completion of services[1508](index=1508&type=chunk)[1910](index=1910&type=chunk) Investments at Fair Value Through Profit or Loss (as of March 31, HKD '000) | Investment Category | 2024 | 2023 | | :--- | :--- | :--- | | Hong Kong Listed Equity Securities | 86,908 | 10,922 | | Unlisted Equity Instruments | 79,769 | 5,115 | | Fund Investments | 86,569 | 55,421 | | Derivative Financial Instruments | 27 | 33 | | **Total** | **253,273** | **71,491** | - Total loans and trade receivables amounted to **HKD 113 million**, with loans primarily being secured loans at interest rates ranging from **8% to 15%**[1538](index=1538&type=chunk)[1539](index=1539&type=chunk) - The company granted **91.5 million share options** on **March 27, 2024**, with an exercise price of **HKD 0.48 per share**, and their estimated fair value was **HKD 22.661 million**, calculated using the binomial option pricing model[2043](index=2043&type=chunk)[2044](index=2044&type=chunk)

Revenue and Financial Performance - Total revenue for the year 2024 was HKD 49,456 thousand, compared to HKD 26,943 thousand in 2023, representing an increase of approximately 83.5%[24] - Asset management division revenue decreased by 56.05% to HKD 4,784 thousand in 2024 from HKD 10,885 thousand in 2023[12] - The company reported a net loss of HKD 30,679 thousand for the year 2024, compared to a net loss of HKD 58,855 thousand in 2023, showing a reduction in loss by approximately 47.9%[17] - Securities brokerage revenue increased significantly to HKD 33,385 thousand in 2024 from HKD 2,913 thousand in 2023, a growth of approximately 1,046%[24] - Total revenue for the year reached 49,456 thousand HKD, with the securities brokerage and margin financing segment contributing the highest at 34,877 thousand HKD[28] - The company reported a net loss of 37,827 thousand HKD, primarily driven by a significant impairment loss on right-of-use assets amounting to 6,140 thousand HKD[28] - The equity investment segment recorded a loss of 7,244 thousand HKD, largely due to fair value losses on investments of 3,453 thousand HKD[28] - The company's share of losses from associates amounted to 2,483 thousand HKD, contributing to the overall loss[42] - The company's total comprehensive expenses for the year were 37,119 thousand HKD, a reduction from 65,232 thousand HKD in the previous year[35] - The company's corporate finance business segment revenue decreased by 13.32% to 4,719 thousand HKD in 2024, resulting in a segment loss of 2,789 thousand HKD compared to a segment profit of 14,446 thousand HKD in 2023[72] - The company's interest income from the lending business increased by approximately 62.91% to HKD 4,542,000 in 2024 compared to HKD 2,788,000 in 2023[82] - The lending business recorded a segment loss of HKD 476,000 in 2024, compared to a loss of HKD 3,005,000 in 2023[82] - The company's revenue from advisory and insurance brokerage services decreased by approximately 24.85% to HKD 611,000 in 2024 compared to HKD 813,000 in 2023[95] - The company reported a basic and diluted loss per share of (30,679) thousand HKD in 2024, compared to (58,855) thousand HKD in 2023, with weighted average shares increasing to 3,381,332 thousand from 2,074,438 thousand[68] Assets and Liabilities - The company's total assets increased to HKD 801,539 thousand in 2024 from HKD 298,592 thousand in 2023, a growth of approximately 168.4%[20] - The company's cash and bank balances (trust and general) increased to HKD 565,995 thousand in 2024 from HKD 248,650 thousand in 2023, a growth of approximately 127.6%[20] - The company's investment in associates increased to HKD 112,898 thousand in 2024 from HKD 99,647 thousand in 2023, a growth of approximately 13.3%[20] - The company's trade receivables and loans receivable increased to HKD 99,997 thousand in 2024 from HKD 42,644 thousand in 2023, a growth of approximately 134.5%[20] - Total assets increased to 1,092,191 thousand HKD in 2024, up from 475,761 thousand HKD in 2023, with the securities brokerage and margin financing segment showing the largest growth[32] - The company's total liabilities rose to 305,348 thousand HKD in 2024, compared to 179,292 thousand HKD in 2023, with the securities brokerage and margin financing segment accounting for the majority[32] - The company's total liabilities in the securities brokerage and margin financing segment increased significantly to 276,170 thousand HKD in 2024, up from 137,616 thousand HKD in 2023[32] - The company's total assets increased to 786,843 thousand HKD in 2024 from 296,469 thousand HKD in 2023, with a significant increase in share capital to 632,625 thousand HKD from 131,797 thousand HKD[61] - The company's total outstanding loans as of March 31, 2024, amounted to HKD 111,500,000, with annual interest rates ranging from 8% to 15%[88] - The company's unsecured loans increased significantly to HKD 93,704,000 in 2024 from HKD 3,014,000 in 2023[74] - The company's trade payables from securities brokerage business increased to HKD 276,025,000 in 2024 from HKD 137,157,000 in 2023[74] - The company's trade payables from margin and cash clients increased to HKD 266,924,000 in 2024 from HKD 137,157,000 in 2023[74] - The company's total trade payables increased to HKD 276,025,000 in 2024 from HKD 137,157,000 in 2023[74] - The company's current assets increased to HKD 864.1 million as of March 31, 2024, compared to HKD 369.3 million in the previous year, with a current ratio of 2.97x (2.08x in 2023)[158] - The company's liquidity position improved significantly, with a current ratio of 2.97x as of March 31, 2024, compared to 2.08x in the previous year[158] - The company's capital structure includes debt (corporate bonds, lease liabilities), cash and cash equivalents, and equity attributable to the company's owners, comprising issued share capital and reserves[169] - The capital gearing ratio decreased to 3.05% as of March 31, 2024, from 12.40% as of March 31, 2023, primarily due to the repayment of corporate bonds[190] - The debt ratio decreased to 27.96% as of March 31, 2024, from 37.71% as of March 31, 2023[190] - The group's liquidity range is between HKD 100,000 and HKD 3,000,000 or 5% of its adjusted total liabilities, whichever is higher[189] - As of March 31, 2024, the group's cash and cash equivalents totaled approximately HKD 289,257,000, with 98.22% denominated in HKD, 1.47% in USD, 0.27% in RMB, and 0.04% in SGD[178] - The group's investments at fair value through profit or loss amounted to approximately HKD 253,273,000 as of March 31, 2024, with a net loss of HKD 3,481,000[180] Expenses and Costs - The company's employee costs decreased to HKD 35,734 thousand in 2024 from HKD 42,575 thousand in 2023, a reduction of approximately 16.1%[17] - The company's other operating expenses increased to HKD 21,169 thousand in 2024 from HKD 13,916 thousand in 2023, an increase of approximately 52.1%[17] - Total operating expenses increased to 21,169 thousand HKD in 2024 from 13,916 thousand HKD in 2023, with significant increases in legal and professional fees (6,387 thousand HKD vs. 2,923 thousand HKD) and transaction fees (3,016 thousand HKD vs. 42 thousand HKD)[52] - Employee costs decreased to 35,734 thousand HKD in 2024 from 42,575 thousand HKD in 2023, with a notable reduction in salaries and allowances (28,595 thousand HKD vs. 34,857 thousand HKD)[52] Investments and Funding - The company issued 4,744,684,386 ordinary shares at 0.10 HKD per share in February 2024, raising a total of 474,469 thousand HKD[65] - The company issued 263,593,577 new shares at HKD 0.20 per share under a subscription agreement in August 2023[97] - The company allocated HKD 194 million for working capital of its main business, with HKD 192.97 million already utilized and HKD 1.03 million remaining unused[105] - HKD 100 million was fully utilized for the lending business, while HKD 50 million was fully allocated for asset management[105] - HKD 44 million was allocated for corporate financing, with HKD 42.97 million utilized and HKD 1.03 million expected to be used by 2024[105] - The company invested USD 3.04 million (approximately HKD 23.71 million) in blockchain technology and cryptocurrency trading services, fully utilizing the allocated funds[110] - USD 1.6 million (approximately HKD 12.48 million) was invested in a bank entity providing cryptocurrency custody services[110] - HKD 13.7 million was used to repay principal and accrued interest of corporate bonds due between September and October 2023[110] - HKD 2.75 million was allocated for general working capital, including employee costs, rent, and office expenses[110] - The company raised HKD 60 million from the issuance of the third tranche of Jiangxian Capital convertible bonds, with HKD 36 million used for proprietary trading, HKD 12 million for private equity investments, and HKD 12 million for asset management[114] - The total proceeds from the subscription amounted to HKD 52,720,000, with net proceeds received by the company (after deducting related expenses) approximately HKD 52,640,000[130] - The company allocated HKD 140 million as seed capital for investment in the group's asset management business, specifically for establishing investment funds targeting the secondary stock markets in Hong Kong, China, and the US[136] - HKD 56.82 million was allocated for general operating expenses, including employee costs, rental expenses, and other office expenses, with HKD 24.94 million already utilized and HKD 31.88 million remaining[136] - HKD 24 million was allocated for incubating and operating companies in the fintech sector, with the full amount already utilized[136] - HKD 10 million was allocated to repay corporate bonds and accrued interest due between December 2023 and April 2024, with the full amount already utilized[136] - HKD 16 million was allocated for a new purpose: investment immigration, with the full amount already utilized[136] - HKD 25 million was allocated for a new purpose: clean energy investment, with the full amount already utilized[136] - HKD 5 million was allocated for a new purpose: cryptocurrency investment, with the full amount already utilized[136] - The company raised approximately HKD 385 million from the issuance of the first batch of convertible bonds, with HKD 180 million allocated to a joint venture for margin financing and underwriting business expansion, HKD 150 million for loan business expansion, and HKD 34 million for general working capital[164] - The third batch of Jiangxian Capital convertible bonds was exercised at a conversion price of HKD 0.06, resulting in the issuance of 650 million shares on January 14, 2019[165] - The company's total proceeds from the rights issue amounted to approximately HKD 474.5 million, with a net price per rights share of HKD 0.0997[150] - The net proceeds from the issuance of the second batch of Jiangxian Capital convertible bonds amounted to HKD 60,000,000, with approximately HKD 50,000,000 allocated for expanding margin financing business and HKD 10,000,000 for underwriting business[173] - The company fully repaid the outstanding principal of HKD 153,585,000 and all accrued and unpaid interest related to the PAL convertible bonds by July 10, 2020[174] - The total funds raised through the issuance of the first, second, and third batches of Jiangxian Capital convertible bonds were HKD 60,000,000, all of which were utilized for expanding margin financing and underwriting business[175] Corporate Governance and Compliance - The company has fully complied with all code provisions of the Corporate Governance Code and, where applicable, met its recommended best practices for the entire year ended March 31, 2024[198] - Significant acquisitions and disposals, as well as contingent liabilities, were noted[199] - The company adopted a share award scheme[200] - The company's subsidiary maintained a minimum net asset value of HKD 300,000 from April 1, 2023, to December 31, 2023, and HKD 500,000 from January 1, 2024, to March 31, 2024, as required by the Insurance Ordinance[170] - The company's subsidiary complied with the liquidity requirements under the Securities and Futures (Financial Resources) Rules during the reporting year[168] - The company's board decided to reallocate resources and change the use of proceeds from the rights issue to better utilize financial resources and seize other business opportunities[171] Strategic Plans and Future Outlook - The company plans to focus on sustainable growth, customer value enhancement, and technology-driven financial innovation in 2024[191] - The company aims to increase investment, expand capital scale, and enhance its influence and reputation in the capital market[192]

Revenue and Income - Revenue for the six months ended 30 September 2023 was HK$18,349,000, an increase of 24.5% compared to HK$14,695,000 for the same period in 2022[7]. - Total income for the six months ended 30 September 2023 was HK$18,349,000, compared to HK$14,695,000 for the same period in 2022, reflecting an increase of about 25%[186]. - Income from securities brokerage business rose sharply to HK$10,469,000, compared to HK$1,747,000 in the same period of 2022[166]. - Income from asset management business decreased to HK$2,624,000 in 2023 from HK$5,509,000 in 2022, a decline of approximately 52%[186]. - Service income from corporate finance was HK$1,701,000 for the six months ended 30 September 2023, down from HK$3,790,000 in the same period of 2022, a decrease of about 55%[186]. - Interest income from money lending increased to HK$1,837,000, up from HK$1,459,000 in the previous year[166]. - Interest income from financial institutions rose to HK$1,476,000, up 239% from HK$435,000 in the previous year[106]. Loss and Expenses - Loss before tax for the period was HK$17,423,000, a decrease of 29.1% from HK$24,615,000 in the previous year[7]. - The company reported a loss for the period of HK$17,425,000, which contributed to accumulated losses of HK$620,232,000[12]. - Total comprehensive expense for the period amounted to HK$24,385,000, including other comprehensive expenses of HK$6,960,000[12]. - The company reported a basic and diluted loss attributable to shareholders of HK$17,425,000 for the six months ended 30 September 2023, compared to a loss of HK$24,607,000 for the same period in 2022[51]. - The company incurred other comprehensive expenses of HK$6,960,000 for the period, compared to HK$12,108,000 in the previous year[157]. - The loss for the period was HK$24,607,000, which is consistent with the previous period's loss[194]. Assets and Liabilities - Total assets as of 30 September 2023 were HK$371,186,000, slightly up from HK$369,299,000 as of 31 March 2023[9]. - Total segment assets decreased slightly to HK$339,063,000 as of 30 September 2023 from HK$345,407,000 as of 31 March 2023, a decline of 1.9%[104]. - The total consolidated assets increased to HK$487,836,000 as of 30 September 2023, compared to HK$475,761,000 as of 31 March 2023, reflecting a growth of 2.2%[104]. - Total segment liabilities decreased to HK$133,117,000 as of 30 September 2023 from HK$141,106,000 as of 31 March 2023, a reduction of 5.7%[104]. - The company held listed equity securities in Hong Kong valued at HK$5,364,000 as of 30 September 2023, down from HK$10,922,000 as of 31 March 2023, a decrease of approximately 50.9%[56]. - Unlisted equity instruments increased to HK$22,075,000 as of 30 September 2023 from HK$5,115,000 as of 31 March 2023, reflecting a substantial increase of approximately 331.5%[56]. Cash Flow - The net cash generated from financing activities was HK$44,193,000, compared to a net cash used of HK$82,390,000 in the previous year[162]. - Operating cash flow showed a significant decline, with a net cash used of HK$12,390,000, down from HK$34,323,000 generated in the same period last year[162]. - The cash and cash equivalents at the end of the period were HK$124,071,000, a decrease from HK$111,748,000 at the beginning of the period[162]. - The repayment of corporate bonds amounted to HK$3,100,000, down from HK$30,000,000 in the previous year[162]. Equity and Share Capital - Total equity increased to HK$324,802,000 from HK$296,469,000, representing a growth of 9.5%[10]. - The company issued shares resulting in an increase in share capital to HK$158,156,000 and share premium to HK$788,938,000[12]. - The company issued shares amounting to HK$56,730,000 during the reporting period[180]. Financial Reporting and Standards - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from April 1, 2023, with no significant changes to accounting policies[18]. - The company has commenced an assessment of the impact of new and revised HKFRSs but has not yet determined if they will materially affect its results[18]. - The interim financial information is presented in thousands of units of Hong Kong dollars (HK$'000) for the six months ended September 30, 2023[16]. Strategic Initiatives - The company is committed to enhancing its market position through strategic investments and potential acquisitions in the fintech sector[6]. - The company aims to expand its market presence and enhance its product offerings in the upcoming quarters[165]. Other Information - The company did not have any dilutive potential ordinary shares during the reporting period[32]. - The company did not enter into new lease agreements for its branch office during the six months ended 30 September 2023, consistent with the previous period[49]. - The company did not purchase any property and equipment during the six months ended 30 September 2023, similar to the previous year[198]. - The company has undergone changes in its board of directors, with new appointments made on 30 October 2023[148]. - The independent review report was conducted by Zhonghui Anda CPA Limited, appointed on 30 October 2023[141].

國富創新有限公司（「本公司」）董事（「董事」）會（「董事會」）公佈本公司及其附屬 公司（統稱「本集團」）截至二零二三年九月三十日止六個月（「本期間」）之未經審 核業績及二零二二年同期之比較數字。本集團之本期間未經審核中期財務資料已 獲董事會審核委員會（「審核委員會」）及本公司外部核數師審閱。 | --- | --- | --- | --- | |------------------------------------------------------------------------|-------|-------------------------------------------------------------|--------------------------------| | | 附註 | 截至九月三十日止六個月 \n二零二三年 千港元 （未經審核） | 二零二二年 千港元 （未經審核） | | 收入 按公平值列入損益賬（「 按公平值列入損益賬 」） | 3 | 18,349 | 14,695 | | 之投資虧損淨額 | | (9,661) | (450) | | 經紀與其他服務之成本 | ...

Fundraising Activities - The company raised approximately HK$56.50 million and HK$56.82 million from two fundraising activities in September 2022 and January 2023, respectively, to replenish working capital and acquire fintech-related assets[11]. - The total amount raised from the two new share offerings was used primarily for capital-intensive licensed activities and acquiring quality fintech-related assets at low prices during the economic downturn[11]. - The company raised a total of HK$305,661,000 through the issuance of convertible bonds to Riverhead Capital in 4 tranches[44]. - The net proceeds from tranche 3 of the convertible bonds amounted to HK$60,000,000, with approximately HK$36,000,000 allocated to strengthen proprietary trading, HK$12,000,000 for private equity investments, and HK$12,000,000 for asset management[48]. - The total amount raised from the issuance of the Convertible Bonds was HK$120,000,000 as of 31 March 2023[79]. - The Directors intend to allocate 50% of the net proceeds from the Subscription for private equity and/or securities investment opportunities, 15% for general working capital, and 35% for potential new projects[182]. - The net proceeds from the placing of new shares were approximately HK$56.82 million after deducting commissions and other related expenses[194]. Financial Performance - Securities brokerage and margin financing revenue decreased by approximately 80.36% to HK$7,309,000 from HK$37,222,000 in 2022[29]. - Net investment gains for the year ended March 31, 2023, amounted to approximately HK$22,000, compared to nil in 2022[29]. - Segment loss for the securities brokerage and margin financing business increased by approximately 2,510.92% to HK$12,428,000 from HK$476,000 in 2022[29]. - Corporate finance segment revenue decreased by approximately 20.46% from HK$6,844,000 to HK$5,444,000[29]. - Corporate finance segment profit for the year ended March 31, 2023, was approximately HK$14,446,000, compared to a segment loss of approximately HK$11,652,000 in 2022[29]. - Interest income from money lending decreased by approximately 66.60% to HK$2,788,000 from HK$8,348,000 in 2022[30]. - The company reported a net investment loss from equity investments of approximately HK$4,500,000, an increase of about 60.20% from HK$2,809,000 in 2022[68]. - The net loss on financial instruments was approximately HK$4,630,000 for 2023, compared to approximately HK$3,151,000 in 2022[200]. Market Conditions - The Hong Kong stock market saw a significant decline, with the Hang Seng Index dropping over 15% in the past year, reaching its lowest level in nearly 13 years[7]. - The average daily trading volume in the Hong Kong securities market decreased by over 25% year-on-year[7]. - The global market outlook for 2023 is expected to face volatility and challenges due to high interest rates and geopolitical factors, impacting investment demand and financial market stability[139]. - The global financial markets have been sluggish over the past year due to geopolitical tensions and high interest rates, negatively impacting the economies of Hong Kong and Mainland China[200]. Strategic Goals - The company aims to leverage fintech innovation opportunities in China and Hong Kong to expand its business lines and enhance its capability to provide comprehensive financial services[9]. - The company is committed to becoming an integrated financial service partner and a one-stop platform for premium financial services, focusing on cross-border financial services and fintech innovation[9]. - The company aims to enhance operational capabilities and competitiveness through fintech innovation and strategic goals of technological transformation[25]. - The company aims to enhance its fintech innovation capabilities and expand its business lines to become an ideal integrated financial service partner for corporate and individual investors[118]. - The company will leverage opportunities from the Guangdong-Hong Kong-Macao Greater Bay Area to facilitate two-way capital flows and support national policies[118]. - The company intends to attract strategic investments to expand its capital base and enhance its credit rating in the capital market[12]. Capital Management - As of March 31, 2023, the company had three outstanding loans with an aggregate principal amount of HK$17,000,000, with interest rates ranging from 12% to 13% per annum[18]. - The company aims to strengthen its capital base for corporate financing with an allocation of HK$2,000,000[100]. - General working capital is allocated HK$34,000,000[101]. - The company has not utilized HK$150,000,000 of the proceeds as of 31 March 2023[97]. - The Group actively reviews and manages its capital structure to ensure liquidity and support business operations[144]. - The Group's capital structure includes debt, cash and cash equivalents, and equity attributable to owners, with liquid capital ranging from HK$100,000 to HK$3,000,000 or 5% of total adjusted liabilities[168]. Share Capital and Issuance - As of March 31, 2023, the total issued share capital of the Company was approximately HK$131,797,000, comprising 1,317,967,885 shares[141]. - The Company completed a subscription of 183,000,000 shares, representing approximately 19.99% of the total issued shares prior to the subscription and approximately 16.66% post-allotment[143]. - The subscription price for new shares was set at HK$0.31, representing a premium of approximately 8.77% over the closing price on the date of the subscription agreement[126]. - A placing agreement was entered into on December 28, 2022, for up to 219,661,577 placing shares at a price of HK$0.26 per share, representing approximately 20.00% of the existing issued share capital[155][156]. - A total of 219,660,000 placing shares were successfully placed, representing approximately 16.67% of the issued share capital post-allotment[162]. Risk Management - The company is committed to improving its risk management measures and enhancing its risk management capabilities to strengthen business competitiveness[138]. - The company ensures that all licensed subsidiaries maintain adequate liquid capital levels to support business activities and comply with regulatory requirements[120]. - The management monitors the subsidiaries' liquid capital levels daily to ensure compliance with the minimum liquid capital requirements set by regulators[168].

Financial Performance - Revenue for the year ended March 31, 2023, was HKD 26,943,000, a decrease of 53.8% from HKD 58,487,000 in the previous year[7]. - Total comprehensive loss for the year was HKD (65,232,000), down from HKD (76,449,000) in the previous year, showing an improvement in overall financial performance[7]. - Basic and diluted loss per share for the year was HKD (5.58), compared to HKD (8.66) in the previous year, indicating a reduction in losses per share[7]. - The company reported a loss attributable to joint ventures of HKD 855,000 and a pre-tax loss of HKD 58,863,000 for the year ended March 31, 2023[23]. - The company recorded a net loss of HKD 58,855,000 for the year, compared to a net loss of HKD 79,309,000 in the previous year, indicating a 26% reduction in losses[49]. - The company reported a pre-tax loss of HKD 58,863,000 for the year ended March 31, 2023, compared to a loss of HKD 79,534,000 in the previous year, representing a 26% improvement[44]. - The company’s total loss for the year was HKD 79,309,000, reflecting ongoing challenges in the market[23]. Revenue Segments - The company reported a significant increase in corporate finance service income to HKD 2,236,000 from HKD 1,100,000, reflecting growth in this segment[15]. - Asset management income surged to HKD 10,651,000 from HKD 4,583,000, demonstrating strong performance in asset management services[15]. - The company’s revenue from asset management increased to HKD 10,885,000 in 2023 from HKD 4,583,000 in the previous year, indicating growth in this segment[24]. - The securities brokerage and margin financing business generated revenue of approximately HKD 7,309,000, down approximately 80.36% from HKD 37,222,000 in the previous year[79]. - The corporate finance segment's revenue decreased by approximately 20.46% from about HKD 6,844,000 to approximately HKD 5,444,000, while it recorded a segment profit of approximately HKD 14,446,000 compared to a segment loss of about HKD 11,652,000 in the previous year[81]. Investment Performance - Net investment losses amounted to HKD (4,630,000), compared to HKD (3,151,000) in the prior year, indicating a deterioration in investment performance[7]. - The company incurred a net investment loss of HKD 3,151,000, impacting overall performance negatively[24]. - The group recorded segment revenue and net investment losses of approximately HKD 4,500,000 in equity investments, representing an increase of about 60.20% compared to HKD 2,809,000 in the same period of 2022[102]. Asset and Liability Management - The company’s cash and cash equivalents decreased to HKD 248,650,000 from HKD 365,754,000, indicating a reduction in liquidity[9]. - The total assets of the company decreased from HKD 604,610,000 in 2022 to HKD 475,761,000 in 2023, reflecting a significant reduction in asset value[30]. - The company’s total liabilities decreased from HKD 356,751,000 in 2022 to HKD 179,292,000 in 2023, showing a reduction in financial obligations[30]. - Trade payables and other payables decreased to HKD 141,682,000 from HKD 179,461,000, reflecting improved management of liabilities[8]. - The company’s short-term lease expenses decreased to HKD 234,000 in 2023 from HKD 328,000 in 2022, a decline of about 29%[40]. Credit Risk and Management - The expected credit loss on receivables increased significantly to HKD (16,717,000) from HKD (5,425,000), reflecting higher credit risk[7]. - The expected credit loss for trade receivables increased to HKD 14,604,000 in 2023 from HKD 2,793,000 in 2022, reflecting a substantial rise of approximately 422.5%[61]. - The company has implemented sound credit management policies to monitor and manage credit risk effectively[184]. Employee and Operational Costs - Employee costs amounted to HKD 42,575,000 in 2023, down from HKD 51,702,000 in 2022, reflecting a decrease of about 17%[40]. - Total operating expenses decreased to HKD 13,916,000 in 2023 from HKD 25,770,000 in 2022, a reduction of approximately 46%[40]. - The group had a total of 55 employees as of March 31, 2023, down from 69 employees in 2022, with employee costs (excluding director remuneration) approximately HKD 36,115,000, a decrease from HKD 43,987,000 in 2022[186]. Capital Management and Financing - The company issued 183,000,000 shares in September 2022, raising approximately HKD 56,730,000 from the subscription[73]. - The company increased its authorized share capital to HKD 2,000,000,000 by adding an additional 18,000,000,000 shares in March 2023[72]. - The company issued convertible bonds totaling HKD 570,000,000, with a conversion price of HKD 0.06 per share, resulting in the issuance of 6,500,000,000 shares upon full conversion[104]. - The company plans to continue its strategy of expanding its financing and underwriting businesses through the proceeds from the convertible bonds[119]. Future Outlook - The company anticipates a significant improvement in the Hong Kong economy due to the resumption of business and travel activities, benefiting the overall financial services sector[127]. - The management anticipates a gradual recovery in the business environment and market demand as Hong Kong and mainland China resume cross-border operations[176]. - The company aims to leverage opportunities in national and Hong Kong financial technology innovation, actively seeking strategic investors and optimizing management[129].