Financial Performance - The group's revenue for the year ended December 31, 2020, was approximately HKD 101,716,000, an increase of about 20.84% compared to HKD 84,172,000 in 2019[12]. - The net profit attributable to the company's owners significantly increased to approximately HKD 44,190,000, compared to a net loss of approximately HKD 71,651,000 in 2019, marking a turnaround[13]. - Gross profit for 2020 was HKD 80.030 million, compared to HKD 74.116 million in 2019, reflecting an increase of 7.8%[187]. - The profit before tax for 2020 was HKD 46.716 million, a significant recovery from a loss of HKD 69.433 million in 2019[187]. - The net profit for the year was HKD 44.179 million, compared to a loss of HKD 71.243 million in the previous year[187]. - Total comprehensive income for the year was HKD 37.833 million, a recovery from a total comprehensive loss of HKD 69.861 million in 2019[187]. - Basic earnings per share for 2020 was HKD 1.59, compared to a loss per share of HKD 2.57 in 2019[189]. - The company reported a significant reduction in administrative expenses, amounting to HKD 24.727 million in 2020, down from HKD 60.870 million in 2019[187]. Revenue Sources - Interest income from the lending business grew by approximately 14.64% compared to 2019, contributing to the overall revenue increase[12]. - Margin financing interest income surged to approximately HKD 12,665,000, a growth of about 107.05% from HKD 6,117,000 in 2019[12]. - The new trading business related to medical products contributed approximately HKD 14,844,000 in revenue, which was not present in 2019[12]. - The revenue from the group's securities business was approximately HKD 16,425,000, a significant increase of about 102.68% compared to HKD 8,104,000 in 2019[18]. - The lending business generated interest income of approximately HKD 55,342,000, an increase of about 14.64% compared to HKD 48,274,000 in 2019[22]. Business Segments - The lending segment's profit for the year was approximately HKD 38,604,000, up from HKD 30,248,000 in 2019[13]. - The financial services segment turned a profit of approximately HKD 958,000, recovering from a loss of approximately HKD 26,902,000 in the previous year[13]. - The new trading business focused on medical products contributed approximately HKD 14,844,000 in revenue and generated an operating profit of about HKD 386,000[24]. Investment and Assets - The group reduced its investment portfolio size to allocate more resources to better-performing business activities, achieving a turnaround in the asset investment segment[25]. - The group's bond investment interest income for the year was approximately HKD 15,105,000, a decrease of about 45.65% compared to HKD 27,794,000 in 2019[27]. - As of December 31, 2020, the group's financial assets measured at fair value through profit or loss amounted to approximately HKD 294,903,000, up from HKD 249,128,000 in 2019[28]. - The group's investment in listed equity securities was approximately HKD 227,759,000 as of December 31, 2020, compared to HKD 150,673,000 in 2019[28]. - The fair value of the group's listed bond investments was zero as of December 31, 2020, down from HKD 11,705,000 in 2019[28]. Financial Position - The company has approximately HKD 204,512,000 in bank balances and cash as of December 31, 2020, down from HKD 389,225,000 in 2019[49]. - The net current assets reached approximately HKD 1,245,863,000, an increase from HKD 1,034,024,000 in 2019[49]. - The current ratio is approximately 41.14 times, up from 21.44 times in 2019[49]. - The debt-to-asset ratio is approximately 2.33%, improved from 3.54% in 2019[49]. - The company has zero outstanding borrowings as of December 31, 2020, compared to HKD 20,800,000 in 2019[49]. Corporate Governance - The board comprises experienced directors with extensive backgrounds in finance and management, enhancing governance[66]. - The company has adopted the Corporate Governance Code and has complied with all applicable provisions, except for a deviation noted in paragraph A.2.1[121]. - The board consists of five members, including two executive directors and three independent non-executive directors, who held seven meetings during the year[123]. - The audit committee held four meetings during the year to review the group's financial statements and discuss the effectiveness of internal controls and risk management[141]. - The company emphasizes good corporate governance standards to enhance shareholder value and manage risks effectively[120]. Future Plans - The group plans to enhance its digital and intelligent trading services to improve user experience and strengthen core competitiveness[9]. - The group aims to explore new investment opportunities in fintech, vaccination, and health check services as part of its future strategy[10]. - The company plans to expand its business by hiring licensed representatives from defunct small and medium-sized securities firms[44]. - The company aims to enter the IPO margin financing business, having established an arrangement with a licensed bank in October 2020[44]. - The company plans to expand its lending business to include retail loans and project financing[45]. Employee Relations - The group employed 29 employees as of December 31, 2020, providing regular training to enhance employee capabilities[54]. - The group has maintained good relationships with employees, customers, and suppliers, which is crucial for achieving its business objectives[84]. Risk Management - The group has engaged an independent firm to assist in identifying and assessing risks, and to conduct internal control audits, with the board adopting recommended measures for risk management[151]. - The enterprise risk management framework was established in 2017, with the board responsible for maintaining effective internal controls and management responsible for implementing the system[152]. - The group employs a "three lines of defense" governance structure for risk management, with a risk register maintained to track significant identified risks[154].
嬴集团(00397) - 2020 - 年度财报