Financial Performance - The Group's listed investments turned from a profit of approximately HK$53.4 million in the year ended September 30, 2021, to a loss of approximately HK$40.9 million in the fiscal year 2021/22[12]. - For the fiscal year ended September 30, 2022, the Group reported a negative turnover of approximately HK$25.1 million, compared to a positive turnover of HK$76.7 million in the previous year[39]. - The net loss attributable to equity holders of the Company for the year was approximately HK$88.1 million, a significant decline from a net profit of HK$62.7 million in the prior year[39]. - The performance of listed investments shifted from a gain of HK$53.4 million in the previous year to a loss of approximately HK$40.9 million in the current year[40]. - The loss on listed investments included a net realized loss of approximately HK$19.9 million and a net unrealized loss of approximately HK$21.4 million, offset by dividend income of approximately HK$0.4 million[40]. - The Group's financial performance indicates a substantial decline in investment returns, highlighting challenges in the market environment[39]. - The management is expected to focus on strategies to recover from the losses and improve future performance[39]. - The Group's investment strategy may need to be reassessed in light of the recent financial results to enhance resilience against market volatility[39]. - Future guidance will likely include measures to mitigate risks associated with listed investments and improve overall financial health[39]. Investment Strategy - The Group plans to adopt cautious measures to manage its investment portfolio in light of the emergence of the Omicron variant and geopolitical tensions[18]. - The Group's focus on bond investments continued to provide constant cash flows[19]. - The Group's bonds investments in significant companies such as WLS, Gold Medal, Hao Wen, and AMCO show a diversified investment strategy with a focus on companies with strong asset positions[88][89][94]. - The Group's strategy aligns with the overall direction of the Hong Kong government's development plans for property construction and infrastructure investment, expected to generate considerable profit in the medium to long term[87][90]. Financial Position - As of September 30, 2022, the Group held assets of approximately HK$511.7 million, including cash and cash equivalents of HK$16.7 million[53]. - The current ratio increased from 14.1 as of September 30, 2021, to 15.0 as of September 30, 2022, indicating a healthy liquidity position[53]. - The gearing ratio was 8.1% as of September 30, 2022, up from 4.5% in 2021, which is still considered low[54]. - The Group recorded a net loss of approximately HK$88.1 million for the Year, a turnaround from a net profit of approximately HK$62.7 million in Year 2021[52]. - The net unrealised loss for the Year was approximately HK$21.4 million, consisting of an unrealised gain of approximately HK$50.2 million and an unrealised loss of approximately HK$71.6 million[46]. - The Group had margin payables and overdrafts totaling approximately HK$22.0 million as of September 30, 2022, with interest rates ranging from 8% to 16.0% per annum[76]. Share Capital and Fundraising - The share capital increased from 343,238,249 shares as of September 30, 2021, to 420,128,249 shares as of September 30, 2022 due to the issuance of new shares[55]. - The Company raised approximately HK$17.2 million from the Equity Placing, with net proceeds of approximately HK$16.9 million intended for general working capital and future investments[67]. - The Equity Placing involved the issuance of 68,640,000 new shares at a placing price of HK$0.250 per share, representing a discount of approximately 5.66% to the closing price on the agreement date[65]. - The Company completed a convertible bond placing on September 26, 2022, raising gross proceeds of approximately HK$21.0 million and net proceeds of approximately HK$20.5 million[68]. - As of September 30, 2022, none of the net proceeds from the convertible bond placing had been utilized, with expectations to fully utilize them by September 30, 2023[74]. Corporate Governance - The Company complies with the mandatory Corporate Governance Code provisions, with some deviations discussed in the report[120]. - The Board intends to distribute any excess balance by way of dividends, subject to net income from underlying investments and approval by shareholders[100]. - Future dividend declarations will depend on earnings, financial condition, cash requirements, and other relevant factors as determined by the Board[101]. - The Company has a strong corporate governance structure to ensure effective oversight of management[136]. - The Audit Committee is responsible for the appointment of external auditors and oversight of the Group's financial reporting system and risk management[143]. - The Company engaged an independent professional adviser to conduct an annual review of the adequacy and effectiveness of the Group's risk management and internal control systems[173]. Risk Management - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement[164]. - The processes for identifying, evaluating, and managing significant risks include risk identification, assessment, response, and monitoring[165]. - The Board is committed to implementing effective risk management and internal control systems to safeguard shareholders' interests and Group assets[162]. - An action plan was provided by management to mitigate identified deficiencies in the risk management and internal control systems[176]. Staff and Operations - The total staff costs, excluding Directors' remuneration, amounted to approximately HK$6.2 million for 20 employees as of September 30, 2022[109]. - The Group did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the fiscal year[110]. - The Company prioritizes effective communication with shareholders and provides relevant information in its interim and annual reports[184].
首都创投(02324) - 2022 - 年度财报