Financial Performance - The Group experienced significant losses in the treasury investments segment due to a substantial reduction in the fair value of listed securities, attributed to the downturn of the Hong Kong stock market[14]. - The manufacturing segment operated at a loss for the year, primarily due to a sharp increase in major raw material prices and declining PCB purchase orders since Q4 2018[19]. - The Group's financial performance was impacted by the China-United States trade tensions, affecting PCB sales[13]. - The company recorded operational losses in the manufacturing segment due to soaring raw material prices and operational costs[22]. - The financial services segment has begun to yield income, indicating a positive shift in the Group's business model[20]. - The financial services segment has begun to provide a stable income source despite a challenging investment environment[23]. Business Transformation - The Group has successfully diversified its core business from PCBs into financial services over the past two years, with income now being generated from consultancy fees, interest income, and investment returns[20]. - The company has successfully expanded its core business from printed circuit boards (PCBs) to financial services after a two-year transformation, generating stable income from advisory fees, interest income, and investment returns[23]. - The Shenzhen Platform commenced investment and consultancy services, generating returns through professional services for a restructuring project in the PRC[18]. - The company has rebranded to "HKBridge Financial Holdings Limited" to better align with its focus on financial services and treasury investments, effective from September 13, 2018[26][29]. Risk Management and Compliance - The Group's strategies in 2018 focused on improving risk management, compliance management, and enhancing cash flow recoverability[21]. - The board emphasizes improving risk management and compliance while exploring opportunities in asset management and other financial services[23]. - The company has complied with the Corporate Governance Code, with one noted deviation regarding the roles of the chairman and CEO being held by the same individual[38][39]. - The company has complied with the new requirements under the CG Code related to risk management and internal control during 2018[46]. - The Group's risk management system includes phases of identification, evaluation, management, and monitoring of risks[168]. - The internal control framework includes components such as control environment, risk assessment, control activities, information and communication, and monitoring[171]. - The Group's risk management and internal control systems were concluded to be effective and adequate, providing reasonable assurance against material misstatement or loss[180]. Corporate Governance - The company plans to continue reviewing and proposing amendments to ensure compliance with corporate governance standards[40]. - The Board considers all Independent Non-Executive Directors (INEDs) to be independent during their tenure, based on annual confirmations received[67]. - The Company aims to achieve high standards of corporate governance and regularly reviews its governance policies[76]. - The Board has delegated authority to the Nomination Committee to review board diversity policy and measurable objectives[77]. - The Company is committed to monitoring compliance with legal and regulatory requirements as part of its corporate governance practices[79]. - The Board is responsible for determining material acquisitions and disposals of assets, investments, and major treasury policies[75]. Board Composition and Diversity - The board consisted of six directors as of December 31, 2018, with diverse skills in accounting, banking, manufacturing, marketing, finance, and investment[57]. - The Nomination Policy aims to enhance the effectiveness of the nomination process and will be reviewed at least annually[113]. - The Diversity Policy aims to enhance the effectiveness of the Board by considering various aspects such as gender, age, and professional experience[130]. - All Board appointments will be based on meritocracy, considering the benefits of diversity[140]. - The Nomination Committee will consider candidates' ethical character, experience, and insight into the Company's business when selecting nominees[120]. Shareholder Communication - The Board established a shareholders' communication policy to ensure timely access to balanced and understandable information about the Company[186]. - The Company provides shareholders with contact details for inquiries regarding shareholdings and dividends, enhancing investor relations[190]. - The Company ensures that shareholders' views are communicated to the Board during general meetings[192]. - The Company maintains a dedicated "Investor Relations" section on its website for regular updates and corporate information[187]. - The Company aims to utilize its website as a primary channel for corporate communications and information disclosure[200].
融科控股(02323) - 2018 - 年度财报