Financial Performance - The company reported a net loss after tax of approximately HK$118 million for the year ended December 31, 2018[16]. - The losses were primarily due to net realized losses from sales of listed equity of approximately HK$16 million and losses from changes in fair value of listed equity investments totaling approximately HK$107 million[16]. - The net loss attributable to shareholders for the Year under Review was approximately HK$118 million, an improvement of approximately 73% compared to the previous financial year[55]. - The total net realised losses from sales of listed equity investments were approximately HK$16 million, down from approximately HK$93 million last year[55]. - Losses from changes in fair value and impairment loss of listed equity investments were approximately HK$107 million, significantly reduced from approximately HK$319 million last year[55]. Business Focus and Strategy - The company is focusing on developing its new core business in integrated financial services, with strengthened management expertise through new recruitments[17]. - The integrated financial services business will be the principal focus of the company going forward[24]. - The Company plans to enhance its integrated financial services business, which includes securities investments, brokerage services, margin financing, and money lending[41]. - The management expects significant improvement in the performance of the integrated financial services business in the coming year[29]. - The Company anticipates that the money lending business will provide consistent and significant returns in the future[27]. Investments and Acquisitions - The company has decided to invest a total of HK$20.4 million in the movie business, with HK$3.9 million invested during the year under review[18]. - The first production from the movie investment is expected to be released in theaters in the second half of 2019[18]. - The Company disposed of its 50% shareholding in the joint venture for HK$150 million on April 23, 2018, to focus on its own money lending business[27]. - Longtop Enterprises Limited, acquired on March 22, 2018, generated approximately HK$3.4 million in interest from eight loans during the Year under Review[27]. - The Company invested HK$3.9 million in the movie business during the Year under Review, with a total budgeted investment of HK$20.4 million[41]. Corporate Governance - The company has complied with the Corporate Governance Code, except for deviations from Code Provision A.6.7 regarding attendance of independent non-executive directors at general meetings[108]. - The board consists of three executive directors and three independent non-executive directors, bringing diverse industry expertise[119]. - The company emphasizes the importance of good corporate governance for enhancing accountability and transparency[107]. - The Board consists of three executive directors and three independent non-executive directors, ensuring a high level of independence with independent directors representing at least one-third of the Board[125][126]. - The independent non-executive directors have confirmed their independence in accordance with the Listing Rules, and the Board considers all of them to be independent[127]. Financial Position and Liquidity - The Group's liquidity position remained healthy with bank balances amounting to approximately HK$104 million as of December 31, 2018[56]. - The current ratio was approximately 14 times as of December 31, 2018, compared to approximately 64 times in the previous year[56]. - The Group had interest-bearing margin payables of approximately HK$43 million as of December 31, 2018, with a gearing ratio of 6.5%[60]. - As of December 31, 2018, the total number of issued shares was 691,921,572, with a market value of approximately HK$1,093 million, up from HK$462 million in 2017[63][64]. - The consolidated net asset value per share as of December 31, 2018, was approximately HK$0.961, a decrease from HK$1.131 in 2017[65]. Risk Management and Internal Control - The Company has established and maintained appropriate and effective risk management and internal control systems for the year ended December 31, 2018[199]. - An independent internal control advisory team has reviewed the adequacy and effectiveness of risk management and internal control systems, focusing on risk parameters such as probability and impact[197]. - The risk management system identifies significant risks, introduces controls to manage them, and monitors the effectiveness of these measures[190]. - The internal control system includes procedures to prevent unauthorized access and use of inside information, supported by a disclosure policy[192]. - The Company has developed a disclosure policy to guide Directors and senior management in handling confidential information[192]. Board and Management - The Company has arranged in-house training for directors and senior executives to enhance their knowledge and skills during the year under review[139][141]. - The Board is responsible for significant financial and operational matters, including setting business development goals and monitoring financial performance[133][135]. - Each non-executive director has a two-year appointment term, with one-third of the directors required to retire by rotation at least once every three years[142][143]. - The roles of chairman and chief executive are separated to ensure effective leadership and management within the Company[157]. - Directors are encouraged to seek independent professional advice at the Company's expense to ensure informed decision-making[133][135].
元汇集团(00585) - 2018 - 年度财报