Financial Performance - The company's revenue for the fiscal year ending June 30, 2023, showed a significant increase compared to the previous year, driven by growth in digital business segments such as algorithm trading and artificial intelligence [11]. - The group recorded revenue of approximately HKD 333.96 million for the year ended June 30, 2023, an increase of about 12.99% compared to HKD 295.56 million in the same period last year [12]. - Revenue from party product trading was approximately HKD 92.33 million, a decrease of about 20.07% from HKD 115.51 million in the previous year, as the group strategically shifted focus to commodity trading [13]. - Revenue from commodity trading increased significantly to approximately HKD 241.63 million, an increase of 81.36% from HKD 133.23 million in the previous year, driven by post-pandemic market opportunities [15]. - The net loss attributable to equity holders was approximately HKD 38.71 million, compared to a profit of HKD 41.38 million in the same period last year, primarily due to no revenue generated from securities brokerage and asset management [12]. - The gross profit for the same period was HKD 3,182,000, compared to HKD 50,826,000 in the previous year, indicating a significant decline [185]. - Operating loss for the year was HKD 37,941,000, a decrease from an operating profit of HKD 15,656,000 in 2022 [185]. - The net loss for the year was HKD 38,707,000, compared to a profit of HKD 40,701,000 in the previous year [186]. Economic Environment - The International Monetary Fund (IMF) projects global economic growth at 3% for 2023, with China's growth forecast at 5.2% [8]. - Hong Kong's GDP grew by 1.5% year-on-year in Q2 2023, a decrease from 2.9% in the previous quarter, indicating a slowdown in economic recovery [8]. - The company reported a decline in business sentiment among enterprises, with the Hong Kong Purchasing Managers' Index (PMI) falling to 49.8, indicating contraction [8]. Digital Business and AI Focus - The company is focusing on enhancing its risk management capabilities while developing new business opportunities in the digital sector, particularly in AI and algorithm trading [9]. - The AI market is expected to grow at a compound annual growth rate (CAGR) of over 40% in the next decade, presenting significant opportunities for the company [9]. - The company has made progress in its digital business initiatives, particularly in algorithm trading and AI, as part of its strategy to adapt to the new economic landscape [9]. - The company is actively seeking to leverage the low inventory levels in the AI server market to capitalize on long-term demand, with AI server prices being significantly higher than standard servers [9]. Cost Management and Financial Health - Operating expenses for the reporting period were approximately HKD 39.36 million, a decrease of about 17.57% from HKD 47.75 million in the previous year, due to successful cost control measures [12]. - As of June 30, 2023, the group's net current assets were approximately HKD 115.51 million, down from HKD 174.09 million a year earlier [18]. - The group's cash and bank balances were approximately HKD 89.08 million as of June 30, 2023, compared to HKD 99.19 million in the previous year [18]. - The company plans to use HKD 284 million from the recent fundraising for various purposes, including repaying overdue debts and general working capital [21]. Governance and Compliance - The company has maintained compliance with corporate governance codes, although the roles of Chairman and CEO were not separated during the reporting period [27]. - The Audit Committee held five meetings during the year to consider and approve the audited consolidated financial statements for the year ending June 30, 2023 [39]. - The Audit Committee reviewed the internal controls of the group during the year and confirmed that the annual report is complete, accurate, and complies with all relevant rules and regulations [37]. - The company has established a whistleblowing policy to allow employees to report any misconduct confidentially [37]. Environmental, Social, and Governance (ESG) Initiatives - The company reported a continuous commitment to sustainable operations, aiming to reduce environmental impact and create value for stakeholders [75]. - The environmental, social, and governance (ESG) report covers activities from July 1, 2022, to June 30, 2023, highlighting minimal environmental impact from operations [75]. - The company reported a significant reduction in nitrogen oxides emissions from 1,137.89 kg in 2022 to 1.96 kg in 2023, representing a decrease of approximately 99.83% [88]. - The company has implemented various energy-saving measures, including replacing low-power lamps and encouraging energy-saving habits [86]. - The company aims to reduce waste and has initiated measures such as promoting the use of recycled paper and double-sided printing [92]. Employee Management and Development - The workforce decreased to 36 employees as of June 30, 2023, down from 42 employees a year earlier [25]. - The employee turnover rate decreased to 52.2% in 2023 from 73.9% in 2022, attributed to a stable work environment and the normalization of economic activities [103]. - The total training hours provided to employees in 2023 was 126 hours, an increase from 118 hours in 2022 [109]. - The average training hours per employee in 2023 was 5.5 hours, compared to 5.1 hours in 2022 [109]. Risk Management - The Risk Management Committee was established on December 28, 2015, and held one meeting this year, reviewing the group's risk management procedures and internal control systems [56]. - The company has a policy for the appointment and re-election of directors, with non-executive directors serving a fixed term of three years [58]. - The company has implemented a comprehensive legal and compliance risk management framework to mitigate risks associated with regulatory changes [160]. Shareholder and Capital Structure - The company’s issued share capital was HKD 5,372,451, divided into 537,245,104 shares as of June 30, 2023, with no changes in capital structure during the reporting period [19]. - The company does not recommend any dividend distribution for the year [142]. - Neo Tech holds 390,821,084 shares, representing 72.74% of the company's issued share capital [149].
INTL GENIUS(00033) - 2023 - 年度财报