LFG投资控股(03938) - 2024 - 年度业绩

Financial Performance Summary The company's total revenue doubled in FY2024, significantly narrowing its net loss and improving per-share loss Financial Performance Summary for the Year Ended March 31, 2024 | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 94,173 | 46,873 | +100.9% | | Loss Before Income Tax | (4,323) | (21,551) | Loss narrowed by 79.9% | | Loss for the Year | (4,229) | (22,784) | Loss narrowed by 81.4% | | Basic and Diluted Loss Per Share | (1.0 HK cents) | (5.6 HK cents) | Loss narrowed by 82.1% | | Net Assets | 133,754 | 148,132 | -9.7% | | Total Assets | 231,369 | 261,583 | -11.5% | Consolidated Financial Statements This section presents the company's consolidated financial statements, including income, balance sheet, and detailed notes on accounting policies and key financial items Consolidated Statement of Profit or Loss and Other Comprehensive Income In FY2024, the company's total revenue grew by 100.9% to HKD 94.173 million, primarily driven by corporate finance advisory services and a positive shift in fair value financial asset gains, significantly narrowing the loss for the year to HKD 4.229 million Key Items from Consolidated Statement of Profit or Loss (For the Year Ended March 31) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Total Revenue | 94,173 | 46,873 | | Corporate Finance Advisory Services | 60,275 | 37,056 | | Securities and Underwriting Services | 8,531 | 13,599 | | Interest Income from Margin Financing Services | 11,127 | 15,404 | | Asset Management Services | 4,932 | 420 | | Net Gains/(Losses) from Financial Assets at Fair Value Through Profit or Loss | 9,308 | (19,606) | | Staff Costs | (54,494) | (43,047) | | Expected Credit Losses on Trade Receivables | (11,167) | (2,583) | | Loss Before Income Tax | (4,323) | (21,551) | | Loss for the Year | (4,229) | (22,784) | - Loss for the year attributable to owners of the company significantly decreased to HKD 3.987 million from HKD 22.684 million in the prior year[6] Consolidated Statement of Financial Position As of March 31, 2024, the Group's total assets decreased to HKD 231 million from HKD 262 million, mainly due to reduced trade receivables, with net assets at HKD 134 million and net current assets at HKD 125 million indicating stable short-term solvency Key Items from Consolidated Statement of Financial Position (As of March 31) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Non-current Assets | 8,946 | 12,543 | | Current Assets | 222,423 | 249,040 | | Trade Receivables | 100,280 | 137,607 | | Cash and Cash Equivalents | 41,273 | 21,038 | | Current Liabilities | 97,418 | 113,209 | | Trade Payables | 43,929 | 57,101 | | Net Current Assets | 125,005 | 135,831 | | Net Assets | 133,754 | 148,132 | | Total Equity | 133,754 | 148,132 | Notes to the Consolidated Financial Statements These notes detail the company's accounting policies, composition, and changes in financial data, covering revenue recognition, major clients, trade receivables, impairment, and post-balance sheet events like share option grants General Information and Accounting Policies This section outlines the company's core businesses, including corporate finance advisory, securities and underwriting, margin financing, and asset management, noting that new accounting standards adopted this fiscal year had no significant impact on financial position - The Group primarily engages in corporate finance advisory services, securities and underwriting services, margin financing services, and asset management services[11] - New or revised Hong Kong Financial Reporting Standards first applied for the annual reporting period beginning April 1, 2023, had no significant impact on the Group's results or financial position for the current or prior period[13] Revenue and Segment Information Total revenue for FY2024 was HKD 94.173 million, with HKD 73.738 million from customer contracts; corporate finance advisory services were the largest contributor at HKD 60.275 million, growing 62.7% year-over-year, and a single largest client contributed 18.3% of total revenue Revenue Classification (For the Year Ended March 31) | Revenue Source | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 73,738 | 51,075 | | Corporate Finance Advisory Services | 60,275 | 37,056 | | Securities and Underwriting Services | 8,531 | 13,599 | | Asset Management Services | 4,932 | 420 | | Revenue from Other Sources | 20,435 | (4,202) | | Interest Income from Margin Financing Services | 11,127 | 15,404 | | Net Gains/(Losses) from Financial Assets at Fair Value Through Profit or Loss | 9,308 | (19,606) | | Total | 94,173 | 46,873 | - In FY2024, Client A contributed HKD 17.248 million in revenue, accounting for 18.3% of total revenue[25] Other Income and Expenses This fiscal year, net other income and gains or losses were negative HKD 2.204 million, a significant shift from HKD 15.748 million gain last year, primarily due to a swing in share of results of a consolidated investment fund from gain to loss, while staff costs rose 26.7% to HKD 54.494 million and finance costs decreased 51.8% to HKD 1.949 million - Net other income and gains or losses shifted from a HKD 15.748 million gain in the prior year to a HKD 2.204 million loss this year, mainly due to the share of results of a consolidated investment fund attributable to other redeemable participating shareholders turning from a HKD 15.938 million gain to a HKD 3.544 million loss[37] - Total staff costs increased by 26.6% from HKD 43.047 million to HKD 54.494 million[38] - Finance costs decreased by 51.8% from HKD 4.046 million to HKD 1.949 million[39] Income Tax and Loss Per Share In FY2024, the company recorded an income tax credit of HKD 0.094 million, a shift from a HKD 1.233 million tax expense last year, and basic and diluted loss per share narrowed significantly from 5.6 HK cents to 1.0 HK cents - Basic and diluted loss per share significantly narrowed to 1.0 HK cents from 5.6 HK cents last year[6][45] - As of March 31, 2024, the Group had unutilized tax losses of approximately HKD 12.889 million, for which no deferred tax asset was recognized due to the unlikelihood of future taxable profits[42] Trade and Other Receivables and Payables As of March 31, 2024, total trade receivables decreased by 27.3% to HKD 100 million from HKD 138 million, with HKD 85.421 million from securities margin financing services, and impairment losses on trade receivables significantly increased to HKD 11.167 million during the year Composition of Trade Receivables (As of March 31) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Securities Margin Financing Services | 85,421 | 127,712 | | Securities Trading and Brokerage Services from Clearing Houses | 6,788 | – | | Corporate Advisory and Other Services | 4,636 | 9,470 | | Total | 100,280 | 137,607 | - Impairment losses on trade receivables recognized during the year significantly increased to HKD 11.167 million from HKD 2.583 million last year[51] Events After the Reporting Period On April 23, 2024, the company granted a total of 6.8 million share options to eight directors, with an exercise price of HKD 0.136 per share and a ten-year validity period - On April 23, 2024, a total of 6,800,000 share options were granted to eight directors, with an exercise price of HKD 0.136 per share[55] Management Discussion and Analysis This section provides an overview of the company's operational and financial performance, market conditions, and future outlook, highlighting key drivers and strategic initiatives Business Review During the reporting period, despite challenging market conditions, the company's core corporate finance advisory services revenue grew significantly by 62.7%, becoming the primary driver, while securities and financing services revenue declined, and asset management scale decreased, but investment fund performance shifted from loss to gain Market Review In FY2024, the Hong Kong financial market faced multiple challenges including post-pandemic effects, supply chain disruptions, inflation, and geopolitical instability, leading to an overall decline in the Hang Seng Index, though market sentiment improved towards year-end due to China's economic stimulus - The Hang Seng Index declined from 20,400.11 points on March 31, 2023, but recovered to 16,541.42 points on March 28, 2024, demonstrating market resilience[61] Corporate Finance Advisory Services Corporate finance advisory services revenue significantly increased by 62.7% year-over-year to HKD 60.3 million, primarily driven by strong growth in financial and independent financial advisory services, indicating improved revenue quality despite a reduction in total projects from 140 to 94 Corporate Finance Advisory Services Revenue Breakdown | Service Type | 2024 (HKD millions) | 2023 (HKD millions) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | IPO Sponsorship Services | 7.9 | 11.1 | -28.8% | | Financial and Independent Financial Advisory Services | 51.5 | 23.7 | +117.3% | | Compliance Advisory Services | 0.9 | 2.3 | -60.9% | | Total | 60.3 | 37.1 | +62.7% | Securities and Financing Services Revenue from securities and financing services declined due to reduced market trading activity and smaller average placement project sizes, with margin loan balances decreasing from HKD 128 million to HKD 85.4 million, leading to a corresponding reduction in interest income - Revenue from placing and underwriting business was approximately HKD 1.9 million, a 67.8% year-over-year decrease (2023: HKD 5.9 million)[71] - Total outstanding margin loan balances were approximately HKD 85.4 million, a 33.1% year-over-year decrease (2023: HKD 127.7 million)[72] Asset Management Services and Investment Funds Assets Under Management (AUM) significantly decreased to USD 4.5 million, yet asset management service fee income increased from HKD 0.4 million to HKD 4.9 million, while investment fund performance notably improved, recording a HKD 9.3 million gain compared to a HKD 19.6 million loss in the prior year - Investment funds shifted from a HKD 19.6 million loss last year to a HKD 9.3 million gain this fiscal year, primarily due to improved investment performance[73] - As of March 31, 2024, the net asset value of funds under management and/or investment advisory was approximately USD 4.5 million, a significant decrease from USD 32.1 million in the prior year[73] Financial Review Total revenue increased by 100.9% year-over-year to HKD 94.2 million, driven primarily by corporate finance advisory services and investment fund gains, while staff costs rose 26.7% due to increased discretionary bonuses, and expected credit loss provisions increased, resulting in a significant narrowing of loss attributable to owners from HKD 22.7 million to HKD 4 million - Total revenue increased by 100.9% year-over-year to HKD 94.2 million[75] - Staff costs increased by 26.7% year-over-year to HKD 54.5 million, primarily due to increased discretionary bonuses[78] - Expected credit loss provisions for trade receivables increased to HKD 11.2 million (2023: HKD 2.6 million)[80] - Loss attributable to owners of the company significantly narrowed to HKD 4 million (2023: HKD 22.7 million loss)[85] Liquidity and Capital Structure As of March 31, 2024, the Group maintained a robust financial position with a current ratio of 2.3 times and total cash and bank balances of HKD 51.3 million, while total debt decreased to HKD 33 million, and the gearing ratio improved from 27.5% to 24.7% Liquidity and Capital Structure Metrics (As of March 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Current Assets | HKD 125 million | HKD 136 million | | Current Ratio | 2.3 times | 2.2 times | | Total Cash and Bank Balances | HKD 51.3 million | HKD 31 million | | Total Debt | HKD 33 million | HKD 40.7 million | | Gearing Ratio | 24.7% | 27.5% | Risk Management and Human Resources The Group has no significant foreign exchange exposure, capital commitments, or contingent liabilities, employing 42 staff as of March 31, 2024, with a risk management objective to balance risk and return within acceptable limits - As of March 31, 2024, the Group employed 42 staff, a slight decrease from 45 in the prior year[93] - The Group's majority of revenue is denominated in HKD and USD, resulting in insignificant foreign exchange risk[91] Significant Investments and Future Plans The Group's primary significant investment is a USD 3 million seed fund in Lego Vision Fund SP (LVF), valued at approximately HKD 16.9 million as of March 31, 2024, representing 7.4% of total assets, with fund managers optimistic about long-term AI revolution investment opportunities - The Group holds an investment in Lego Vision Fund SP (LVF), valued at approximately HKD 16.9 million as of March 31, 2024, representing 7.4% of total assets[96][98] - The LVF fund's annual return on net asset value per share was approximately 25.7%[98] - Fund managers believe the Artificial Intelligence (AI) revolution will be a primary driver of economic growth and a clear investment opportunity in the coming years[99] Prospects and Outlook Looking ahead, despite uncertain global economic prospects, the Group will leverage its diversified business portfolio to actively pursue opportunities in resumption and restructuring projects, maintain prudent risk management, seek new ventures in China, Singapore, and globally, and explore emerging areas like virtual assets and ESG - Facing uncertain market prospects, the Group will actively seek business opportunities in resumption and restructuring projects[105] - The Group plans to enhance marketing efforts, seek new business opportunities in China, Singapore, and globally beyond Hong Kong, and evaluate emerging areas such as virtual assets and ESG[106] Other Disclosures This section covers the utilization of IPO proceeds, dividend policy, and corporate governance practices, including any deviations from standard codes Use of Net Proceeds from Listing As of March 31, 2024, the net proceeds of HKD 99.1 million from the 2019 listing have been fully utilized, consistent with the purposes stated in the prospectus and previous announcements - The net proceeds of HKD 99.1 million from the 2019 listing were fully utilized as of March 31, 2024[108] Dividend Policy The Board of Directors resolved not to declare any final dividend for the year ended March 31, 2024 - The Board does not recommend the payment of a final dividend for the year ended March 31, 2024[110] Corporate Governance The company has complied with all applicable provisions of the Corporate Governance Code, with the sole deviation being the combined roles of Chairman and Chief Executive Officer held by Mr. Mui Ho Cheung, an arrangement the Board believes is in the best interest of the company and its shareholders - The company deviated from the Corporate Governance Code's requirement for separation of Chairman and Chief Executive Officer roles, with Mr. Mui Ho Cheung holding both positions concurrently[112][113]