Financial Performance - For the year ended December 31, 2019, the Group's revenue was approximately HK$145,846,000, a decrease of 19.0% from HK$180,048,000 in 2018[15]. - The Group recorded a loss of approximately HK$825,969,000 for 2019, significantly improved from a loss of HK$2,196,597,000 in 2018[15]. - Basic and diluted losses per share were HK21.33 cents in 2019, compared to HK56.82 cents in 2018[15]. - The loan facilitation services segment recorded revenue of approximately HK$16,000, a significant decrease from HK$63,154,000 in 2018, and a profit of approximately HK$15,000 compared to a loss of HK$2,130,679,000 in 2018[23]. - The money lending business generated interest income of approximately HK$85,292,000 for the year, down from HK$88,212,000 in 2018, with an accumulated loan amount of approximately HK$2,536 million[26]. - The money lending segment reported revenue of approximately HK$121,973,000, an increase from HK$96,378,000 in 2018, but incurred a loss of approximately HK$815,636,000 due to an impairment of loan and interest receivables of approximately HK$920,774,000[28]. - The Group recognized a net fair value gain of approximately HK$234,767,000 from investments in listed securities, a recovery from a net fair value loss of HK$387,569,000 in 2018[30]. - The Group's consolidated net asset value was approximately HK$967,369,000, down from HK$1,566,771,000 in 2018[21]. - For the year ended December 31, 2019, the Group recorded interest income of approximately HK$14,844,000 from the Trust investment, down from HK$19,949,000 in 2018[40]. Assets and Liabilities - As of December 31, 2019, the consolidated net assets of the Group were approximately HK$967,369,000, down from HK$1,566,771,000 in 2018, representing a decrease of 38.3%[16]. - The total equity attributable to shareholders decreased to HK$967,369,000 in 2019 from HK$1,566,771,000 in 2018, reflecting a decline of 38.3%[12]. - The Group's plant and equipment value decreased to HK$339,000 in 2019 from HK$1,019,000 in 2018, indicating a reduction of 66.8%[12]. - The Group's financial assets at amortized cost decreased to HK$59,755,000 in 2019 from HK$157,295,000 in 2018, a decline of 62.0%[12]. - As of December 31, 2019, the Group's net current assets were approximately HK$299,308,000, a decrease from HK$1,038,703,000 in 2018, and cash and bank balances were approximately HK$154,958,000, down from HK$179,705,000[48][52]. - As of December 31, 2019, the Group had a gearing ratio of approximately 0.7%, with a net cash position as of December 31, 2018, and no borrowings[70]. - The fair value of the Trust investment decreased to approximately HK$59,755,000 as of December 31, 2019, compared to HK$157,295,000 in 2018[40][43]. Business Activities and Strategy - The Group's principal business activities include loan facilitation services, money lending, securities and other investments, and financial and investment advisory[17]. - The Group is focused on expanding its investment portfolio and enhancing its financial advisory services in the coming years[17]. - The Group aims to diversify its investment portfolio and seek stable and sustainable development opportunities to enhance shareholder value[41][47]. - The Group plans to utilize idle resources to purchase principal-guaranteed wealth management products with expected higher returns compared to savings deposits in the PRC[42][44]. - The Company is exploring ways to improve financial performance and diversify operations into more profitable businesses[67]. - The Company may consider debt and/or equity fundraising plans to meet financing needs arising from business development[67]. Corporate Governance and Compliance - The Group will continue to strengthen corporate governance and risk prevention mechanisms to achieve steady growth and development[47][51]. - The Group has complied with relevant laws and regulations, including the Money Lenders Ordinance and the Hong Kong Companies Ordinance, for the year ended December 31, 2019[114][117]. - The Company has adopted a treasury policy to control and govern possible future securities investments[69]. - The Company has maintained a register of interests and short positions as required by the Securities and Futures Ordinance[189]. Shareholder Information - The total number of issued shares of the Company remained unchanged at 3,870,102,650 shares as of December 31, 2019[49][53]. - The Company did not recommend the payment of any dividend for the year ended December 31, 2019[87]. - The substantial shareholder Hong Kong Financial Services Asset Management L.P. held 2,129,143,068 shares in long position, representing approximately 336.97% of the issued share capital of the Company[190]. - The Company has not entered into any arrangements enabling Directors to acquire benefits through shares or debentures during the year ended December 31, 2019[174]. Employee and Management Information - The Group employed 42 employees as of December 31, 2019, primarily located in Hong Kong and China[64]. - The Group provides in-house training programs to enhance employee skills and knowledge, along with performance reviews and bonuses[106]. - The Company has a share option scheme as incentives for employees, in addition to retirement benefits and medical insurance[106]. - Mr. Yeung Siu Keung joined the Group as a project manager on December 16, 2019, and was appointed as an executive director on December 17, 2019[92]. - The Directors who held office during the year include Mr. Yeung Siu Keung and Mr. Lee Man To, both of whom will offer themselves for re-election at the upcoming annual general meeting[171]. Other Relevant Information - The Group completed the acquisition of Sky State Holdings Limited on February 1, 2019, for a cash consideration of HK$25,000,000, which resulted in a segment revenue of approximately HK$8,941,000 and a segment loss of approximately HK$1,969,000 for the year[39][54]. - The Company has not purchased or redeemed any of its listed securities during the year, with 3,870,102,650 ordinary shares issued as of December 31, 2019[147]. - The aggregate revenue from the company's five largest customers accounted for approximately 73% of total revenue, with the largest customer representing 23%[197]. - The company had no management contracts other than employment contracts during the year[196].
中基长寿科学(00767) - 2019 - 年度财报