Business Segments - The Group is engaged in financial services, property investment and development, automation, and securities investment, with a focus on comprehensive financial services in Hong Kong and the PRC [4]. - The property investment and development segment includes multiple projects in Hong Kong and major cities in the PRC, aiming to increase land reserves in the Greater Bay Area [6]. - The Group is a leader in the distribution of automation equipment in the PRC, capitalizing on opportunities from the "Made in China 2025" initiative and 5G market development [7]. - The financial services segment generated approximately HK47.5millioninrevenuefortheyearended31December2022,adecreaseofapproximately53.7102.7 million in 2021, representing about 5.9% of the Group's total revenue [60]. - The Group's securities brokerage services have seen a year-on-year increase in trading volume due to enhanced marketing strategies and improved eTrading mobile application features [61]. - The Group's wealth management services continued to diversify in 2022 to meet various client needs, leveraging Hong Kong's geographical advantages [66]. - The Group's money lending services included long-term secured loans and short-term unsecured loans, with a conservative approach adopted to optimize the business structure and strengthen risk management in 2022 [67]. Financial Performance - The Group recorded a revenue of approximately HK811.4millionfortheyearended31December2022,representingadecreaseofapproximately69.02,614.8 million in the previous year [40]. - The loss for the year was approximately HK537.4million,comparedtoalossofapproximatelyHK68.8 million in 2021, primarily due to a decrease in fair value gain on investment properties of approximately HK135.9millionandarevenuedecreaseofapproximatelyHK1,803.4 million [41]. - Total assets decreased to HK7,940.5millionin2022fromHK9,884.2 million in 2021, while net assets also declined to HK5,111.4millionfromHK6,334.0 million [28]. - The gross profit margin for 2022 was 22%, a slight increase from 21% in 2020, but down from 23% in 2021 [28]. - The interest coverage ratio was (13.2) in 2022, indicating a significant decline from (0.8) in 2021 [28]. - The current ratio was 1.4 in 2022, slightly down from 1.5 in 2021, indicating a decrease in liquidity [28]. - The net (loss)/profit margin for 2022 was (66%), worsening from (1%) in 2021 [28]. - The Company did not declare any dividends per share for the year [28]. - The Group's revenue for the year ended December 31, 2022, decreased by approximately 69.0% to approximately HK811.4million,comparedtoapproximatelyHK2,614.8 million in 2021 [116]. - The gross profit for the year decreased by approximately 69.9% to approximately HK182.2million,whilethegrossprofitmarginincreasedto22.5551.5 million, compared to approximately HK189.0millionin2021[140].MarketConditionsandChallenges−TheChairman′sstatementhighlightedthechallengesfacedintheHongKongfinancialmarketduetoglobalmonetarypolicytighteningandgeopoliticalrisks[44].−TherealestatemarketinGanzhou,JiangxiProvince,experiencedadeclineintradingvolumein2022comparedto2021,influencedbyregulatorypoliciesandagrowingwait−and−seeattitudeamongbuyers[51].−TheGroupaimstoimproveitsbusinessplanningandoperatingperformancein2023topromotelong−termgrowthamidstachallengingbusinessenvironment[54].−TheHongKongfinancialmarketremainsresilientdespitechallenges,withexpectationsforrapideconomicgrowthandnewgrowthimpetusfromexpandingdomesticdemand[53].−TherealestatesectorinGanzhouisexpectedtograduallyrecoverasfavorablepoliciescontinuetosupportthemarket[55].StrategicInitiatives−TheGroupplanstoseeklocalandoverseaspartnerstoenhanceoveralldevelopmentinresponsetoachallengingbusinessenvironment[8].−TheGroupaimstomaximizeshareholderreturnswhilecontributingtosocietalwell−being,indicatingacommitmenttosustainabledevelopment[8].−TheGroupplanstofocusoninvestmentinstockpropertiesandsalesofavailableproperties,capitalizingontherecoveryoftherealestatemarketinChina[99].−TheacquisitionofShantouTaishengTechnologyLimitedinMarch2023significantlyincreasedtheGroup′slandreservesandpropertyportfolio[99].−TheGroupaimstocreatebetterreturnsforshareholdersbycapturingdevelopmentopportunitiesin2023[108].−TheGroupwillactivelyinvestigatetherealestatemarketforqualityprojectstoexpanditsprojectportfolio[104].OperationalPerformance−TheCompanyfocusedondevelopingindustrialrealestateinGuangmingDistrictofShenzhenCityandcomprehensivepropertyinGanzhouCityduringtheyear[45].−Theautomationsegment′srevenuefortheyearendedDecember31,2022,wasapproximatelyHK574.6 million, a decrease of 27.6% from HK794.0millionin2021,accountingforapproximately70.8118.4 million in 2022, compared to an operating loss of approximately HK181.9millionin2021[60].−TheoperatinglossforthepropertyinvestmentanddevelopmentsegmentwasapproximatelyHK82.4 million in 2022, compared to an operating profit of approximately HK98.0millioninthepreviousyear,primarilyduetoadecreaseinfairvaluegainoninvestmentpropertiesofapproximatelyHK135.9 million [76]. - The Group's securities investment business incurred a loss of approximately HK70.0millionin2022,comparedtoalossofapproximatelyHK49.6 million in 2021, with an operating loss of approximately HK$71.2 million [93]. Risk Management - The group faces operational risks due to inadequate or failed internal processes, which are managed at both divisional and departmental levels [175]. - The financial services business is subject to extensive regulations, and any changes may increase compliance requirements [177]. - The automation business operates in a highly competitive environment, facing risks from global technology companies and rapid technological changes [182]. - The group is exposed to various financial risks, including market, liquidity, and credit risks, which may significantly affect its financial position [184]. - The group continuously monitors cash flows to manage liquidity risk and maintain adequate funding for operations [189]. - Competition for human resources may hinder the company's ability to attract and retain key personnel, prompting the company to offer competitive remuneration packages [191]. Leadership and Governance - Mr. Yao Jianhui has been the Chairman and CEO since August 2015, overseeing multiple subsidiaries and serving on various committees [198]. - Mr. Li Minbin was appointed as a Non-executive Director in August 2015 and became an Executive Director in November 2015, currently serving as Vice President since January 2016 [200]. - The leadership team has extensive experience across diverse industries, including finance, technology, and real estate, which supports the company's strategic initiatives [199]. - The board includes members with significant expertise in investment and strategic planning, which is crucial for navigating market dynamics [198]. - The company emphasizes the importance of correctly interpreting market trends to ensure sustainable growth and profitability [195]. - The strategic committees led by the Chairman are pivotal in guiding the company's long-term vision and investment decisions [198]. - The company is actively involved in multiple sectors, which diversifies its risk and enhances its market presence [199].
