Financial Performance - For the year ended March 31, 2024, UBA Investments Limited recorded a loss of approximately HK$7.4 million, a decrease from a loss of HK$14.4 million in 2023[17]. - The loss per share was HK0.58 cents, compared to HK1.13 cents in the previous year[17]. - Gross proceeds from the disposal of trading securities decreased by 86% from HK$20.9 million to HK$2.9 million due to reduced investment in trading listed securities amid macroeconomic uncertainty[17]. - The net asset value decreased by 8.2% from HK$90.1 million to HK$82.7 million, aligning with a 19% decline in the Hang Seng Index during the same period[17]. - The net loss attributable to owners of the Company for the year was HK$7,409,000, a decrease from HK$14,433,000 in the previous year[195]. - Total assets decreased to HK$83,050,000 from HK$90,449,000 in the previous year, reflecting a decline of approximately 4.9%[195]. - Total liabilities remained relatively stable at HK$335,000 compared to HK$325,000 in the previous year[195]. - Net assets decreased to HK$82,715,000 from HK$90,124,000, indicating a decline of approximately 8.2% year-over-year[195]. - The management fee for the year was approximately HK$1,295,000[121]. Investment Strategy - The Group's proactive investment strategy focused on high-yield listed securities, particularly in the banking and telecommunications sectors, which contributed 85% of the dividend income[18]. - The Company aims for medium-term capital appreciation by investing in listed and unlisted companies in Hong Kong and the PRC[127]. - The investment strategy focuses on equity and equity-related securities in various sectors, including information technology and telecommunications, to balance risk exposure[199]. - The Company aims to minimize the impact of downturns in any specific industry sector through diversified investments[199]. - The Group plans to maintain sufficient liquidity for future investment opportunities while adopting a cautious investment approach[24]. - The short-term strategy involves trading listed securities based on market sentiment while ensuring adequate dividend levels for operations[26]. - The Group will review potential acquisitions of unlisted equity investments periodically[26]. - The Board has resolved that the Company may not invest in any company or entity exceeding 20% of its net asset value at the time of investment[130]. - Investment restrictions include not investing more than 20% of net asset value in any single entity and maintaining a focus on investments primarily in Hong Kong and China[147]. Market Conditions - The U.S. Federal Reserve raised interest rates by a total of 0.5% during the second and third quarters of 2023, marking the eleventh increase since March 2022, with current rates at 5.25%–5.5%[3]. - U.S. inflation decreased from a peak of 9.1% in June 2022 to 3.5% in March 2024, although it remains elevated[3]. - The overall market sentiment was negatively impacted by U.S. interest rate hikes and risks in the Chinese real estate sector, leading to decreased investor confidence[22]. - The group's outlook anticipates challenges in global stock markets, influenced by potential interest rate hikes in the U.S. and ongoing foreign capital outflows from China and Hong Kong[8]. - The Hong Kong equity markets experienced a significant decline, with the Hang Seng Index (HSI) dropping approximately 19% from 20,400 at the end of March 2023 to 16,541 at the end of March 2024[29]. - The Shanghai Composite Index decreased by approximately 7%, falling from 3,272 at the end of March 2023 to 3,041 at the end of March 2024[5]. - Foreign capital outflow from China and Hong Kong reached US$3.8 billion in December 2023, marking the third-largest outflow since 2015[5]. - The RMB depreciated against the USD by approximately 5.7% during the period, contributing to economic uncertainty[5]. Corporate Governance - The Company has complied with the Corporate Governance Code, except for certain deviations noted[81]. - Independent non-executive directors were unable to attend the AGM on August 23, 2023, which constitutes a deviation from the code provision C.1.6[82]. - The Company has taken sufficient measures to ensure corporate governance practices are in line with the Code[84]. - The Company has complied with the Code on Corporate Governance Practices throughout the year ended March 31, 2024[112]. - The audit committee consists of three independent non-executive directors as of March 31, 2024[115]. - The Company did not have formal letters of appointment for all Directors, but all Directors are subject to retirement provisions under article 168 of the Articles of Association[84]. Employee and Environmental Commitment - The Group emphasizes the importance of employee knowledge and skills, providing favorable career development opportunities[172]. - The Group is committed to building an eco-friendly corporation and complying with environmental protection laws[171]. - The Company is committed to reducing its environmental impact and ensuring compliance with environmental protection laws[163]. Shareholder Information - The percentage of the Company's shares held by the public exceeds 25% of the total number of issued shares[53]. - As of March 31, 2024, Cheng Wai Lun, Andrew holds 340,000,000 shares, representing 26.74% of the issued share capital of the Company[176]. - Kingswell Holdings Group Limited owns 192,000,000 shares, accounting for 15.10% of the issued share capital[191]. - The Company has resolved not to recommend a payment of final dividend for the year[107]. - The board of directors decided not to recommend the payment of a final dividend for the year[64]. - The Company did not repurchase, sell, or redeem any of its listed securities during the year[134].
开明投资(00768) - 2024 - 年度财报