Financial Performance - The company reported revenue of HKD 71.78 million for the reporting period, a decrease of 47% compared to HKD 135.61 million in the same period last year[7]. - The net loss attributable to equity holders was HKD 52.64 million, compared to a loss of HKD 380.38 million in the same period last year[7]. - The loss per share was HKD 0.4551, a significant decrease from HKD 4.0683 in the previous year[7]. - Revenue from party product sales, brokerage commissions, and asset management services was HKD 26,463,000 for the twelve months ended December 31, 2020, down from HKD 40,965,000 in 2019[59]. - The total revenue for the twelve months ended December 31, 2020, was HKD 48,280,000, a significant decrease from HKD 122,962,000 in 2019[59]. - The company reported a total comprehensive loss of HKD 52,635,000 for the year ended December 31, 2020, compared to a loss of HKD 380,376,000 in 2019[48]. - The company reported a total comprehensive loss before tax of HKD 52,632,000 for the year ending December 31, 2020, compared to a loss of HKD 383,826,000 in 2019[90]. - The company reported a loss of HKD 52,635,000 for the period, compared to a loss of HKD 383,398,000 in the previous year, indicating an improvement in performance[90]. Revenue Breakdown - Revenue from party product trading decreased to HKD 26.46 million, down from HKD 49.97 million in the previous year[8]. - Revenue from securities and commodities brokerage and asset management reached HKD 23.50 million, a significant increase from HKD 0.73 million in the previous year[9]. - Revenue from commodity trading was HKD 21,033,000 for the twelve months ended December 31, 2020[59]. - Revenue from security services was HKD 784,000 for the twelve months ended December 31, 2020, compared to HKD 2,419,000 in 2019[59]. - Revenue from Hong Kong for the year ending December 31, 2020, was HKD 27,247,000, down from HKD 43,460,000 in 2019, a decline of approximately 37.2%[97]. - Revenue from mainland China decreased to HKD 21,033,000 in 2020 from HKD 79,502,000 in 2019, a decline of about 73.5%[97]. Expenses and Liabilities - Operating expenses were reduced by 49% to HKD 40.25 million during the reporting period[7]. - The group’s net current liabilities as of December 31, 2020, were HKD 136.92 million, an increase from HKD 109.70 million as of December 31, 2019[15]. - The company’s debt-to-equity ratio increased to 112% as of December 31, 2020, compared to 107% as of December 31, 2019[15]. - Total liabilities decreased significantly to HKD 244,029,000 from HKD 196,653,000 in the previous year[46]. - The company’s total liabilities increased significantly, leading to a cumulative loss of HKD (4,143,508,000) as of December 31, 2020[48]. Cash Flow and Liquidity - The company raised a net amount of HKD 284 million from the rights issue and subscription, significantly improving its liquidity and financial resources[15]. - The company reported a cash and cash equivalents balance of HKD 25,604,000, up from HKD 13,525,000 in 2019[45]. - The company experienced a net cash outflow from operating activities of HKD 52,247,000 for the year ended December 31, 2020, compared to a net inflow of HKD 281,000 in 2019[49]. - The company reported a net cash outflow from investing activities of HKD 11,708,000 for the year ended December 31, 2020, compared to HKD 9,198,000 in 2019[49]. Share Capital and Equity - The company successfully completed the placement of 181,463,440 new shares at HKD 0.1 per share and 223,852,128 new shares at HKD 0.105 per share during the reporting period[16]. - The company raised approximately HKD 284 million through rights issue and subscription completed in January 2021[23]. - The company’s total issued share capital as of December 31, 2020, was 134,311,276 shares[26]. - The company has issued a total of 83,600,000 shares under various share option grants[35]. - The company’s total equity decreased to HKD (121,150,000) as of December 31, 2020, from HKD 26,698,000 at the beginning of the year[48]. Management and Governance - The company has complied with the corporate governance code during the reporting period, except for the separation of roles between the Chairman and CEO, which has not been maintained since January 10, 2011[37]. - The Audit Committee consists of three independent non-executive directors and one non-executive director, with a minimum of four meetings held annually[42]. - The company appointed a new CEO on April 6, 2020, after a period without one since January 10, 2011[39]. - The company has made several board appointments and changes, including the appointment of new executive directors in 2020[39]. Business Strategy and Future Outlook - The company aims to expand its customer base by developing an electronic trading platform and further penetrating the Chinese market, which had a market size of approximately USD 528.4 million in 2019[8]. - The company’s management believes that business performance will continue to improve following the implementation of new business strategies[23]. - The company is awaiting approval from the Securities and Futures Commission to restore its asset management and securities licenses[9]. Asset Management and Investments - The company is developing an electronic platform to provide retail loans through fintech, focusing on short-term and micro-loans with relatively low credit risk[12]. - The company has not issued new loans since December 2019, resulting in no revenue from lending activities during the reporting period, compared to HKD 12 million in the same period of 2019[12]. - The company has no significant investments or asset pledges as of December 31, 2020[20]. Convertible Bonds and Financial Instruments - The company has a convertible bond with a principal amount of HKD 100,000,000, which can convert into 10,000,000 shares[30]. - The company issued HKD 100,000,000 convertible bonds in 2020, with an annual interest rate of 2.5% until repayment[82]. - The total value of convertible bonds as of December 31, 2020, was HKD 114,261,000, which includes HKD 1,493,000 in equity portion[80]. Subsidiary and Segment Information - The company completed the sale of its entire issued share capital of International Security Network for a total consideration of HKD 8,750,000[86]. - The group has five reportable segments, including party products trading and securities brokerage, following the loss of control over a subsidiary in China[88]. - The group recognized a loss of HKD 4,257,000 from the sale of its subsidiary, which included the derecognition of goodwill amounting to HKD 11,188,000[107].
INTL GENIUS(00033) - 2021 - 中期财报