Financial Performance - The Group reported annual results for the year ended December 31, 2020, focusing on financial services, corporate consulting, trading, and information technology businesses[10]. - The loss for the year attributable to owners of the Company was approximately HK$71.7 million, a decrease from HK$84.1 million in 2019, with a basic and diluted loss per share of approximately HK$0.08 compared to HK$0.23 in 2019[11][31]. - Excluding the impairment loss on finance lease receivables, the net loss for the year ended 31 December 2020 would be approximately HK$19.7 million, significantly down from HK$36.0 million in 2019[12][32]. - For the year ended December 31, 2020, the Group recorded revenue of approximately HK$39.9 million, a decrease from HK$482.7 million in 2019[35]. - The net loss attributable to equity holders for the year was approximately HK$71.7 million, compared to a net loss of HK$84.1 million in 2019[35]. - The Group made an impairment provision of HK$78.0 million on finance lease receivables for the year ended December 31, 2020, slightly up from HK$77.5 million in 2019[40]. - The expected credit loss (ECL) rate for finance lease receivables was approximately 100% for the year ended December 31, 2020, compared to 48.86% in 2019[41]. Business Segments - The financial services segment includes securities brokerage, corporate finance advisory, asset management, money lending, and financial leasing[10]. - The financial services business recorded a turnover of approximately HK$21.8 million and a segment profit of approximately HK$4.5 million, compared to a turnover of HK$11.8 million and a segment loss of HK$11.2 million in 2019[13][33]. - The corporate finance advisory business generated a turnover of approximately HK$12.8 million and a segment profit of approximately HK$7.8 million, up from HK$1.3 million and a segment loss of HK$0.2 million in 2019[18][19]. - The asset management and advisory business achieved a turnover of approximately HK$7.7 million and a segment profit of HK$5.5 million, compared to HK$1.0 million and a segment loss of HK$2.2 million in 2019[20][21]. - The trading business revenue dropped to approximately HK$10.3 million from HK$462.0 million in 2019, with a segment loss of approximately HK$0.6 million compared to a loss of HK$2.9 million in 2019[24][25]. - The corporate consulting business recorded a turnover of approximately HK$7.7 million and a segment profit of approximately HK$1.2 million, down from HK$8.9 million and HK$2.6 million in 2019[22][23]. - The information technology business recorded nil revenue for the year ended December 31, 2020, with a segment loss of approximately HK$0.02 million[59]. Corporate Governance - The Group emphasizes the importance of corporate governance and has established various committees, including audit and remuneration committees[5]. - The Group's commitment to transparency and accuracy in reporting is highlighted in its compliance with GEM Listing Rules[3]. - The company has recognized the importance of transparency and accountability to shareholders, committing to good corporate governance practices[144]. - The company has complied with the applicable code provisions of the Corporate Governance Code, with some deviations noted, including the roles of chairman and chief executive being held by the same individual[145][146]. - The Board consists of six members, including three executive directors and three independent non-executive directors[168]. - The Company has adopted a revised set of Articles of Association, effective December 30, 2020, aligning with the Corporate Governance Code[154]. - The Board has the authority to appoint Directors to fill casual vacancies or as additions to the existing Board[176]. Legal Matters - The company was ordered to pay damages of HK$4.4 million to Mr. Au Kai To Karel, with costs of HK$100,000 also awarded against the company[90]. - The company has decided not to appeal the Court of Appeal's judgment regarding the payment of HK$4.4 million[90]. - The company has been involved in legal proceedings related to a winding-up petition, which was dismissed with costs payable by the petitioner[90]. - The company has a history of legal disputes dating back to 2015, with various court rulings impacting its financial obligations[89]. - The company has made provisions for the payment of the judgment sum in accordance with court orders[90]. Future Plans and Strategies - The Group aims to expand its market presence and enhance its service offerings in the financial sector[10]. - The Group plans to launch an open-ended Cayman Island mutual fund with initial assets under management of approximately US$50 million[20][21]. - The Group expects a significant increase in demand for governance-related services in the future[22][23]. - The Group plans to enhance revenue streams by exploring involvement in share placement activities within its securities brokerage services[71]. - The Group anticipates sustained demand for professional services related to corporate governance and compliance from Hong Kong listed issuers[73]. Financial Position - The Group recorded cash and bank balances of approximately HK$55.0 million as of 31 December 2020, an increase from approximately HK$47.1 million in 2019[92]. - The net current assets value was approximately HK$2.6 million in 2020, compared to net current liabilities of HK$128.5 million in 2019[92]. - The gearing ratio as of 31 December 2020 was approximately 0.69, slightly up from 0.66 in 2019, with total interest-bearing debts of approximately HK$74.7 million[92]. - The Company completed a rights issue on 22 June 2020, issuing 1,048,802,876 shares at HK$0.110 per share, raising net proceeds of approximately HK$110.8 million[92]. - Approximately HK$14.0 million of the proceeds for general working capital and future investment has not yet been utilized and is expected to be used within 6 months[93]. Management and Staff - The group employed 40 staff as of December 31, 2020, a slight decrease from 41 in 2019, with remuneration policies reviewed annually[128]. - The management team includes Mr. Wong Hin Shek, who has over 26 years of experience in investment banking and strategic investment in various industries[130]. - Mr. Cheung Wai Yin has over 21 years of experience in audit, business development, corporate finance, and financial management[131]. Risk Management - The reporting currency is Hong Kong dollars, with most transactions denominated in HK$ and RMB, exposing the group to exchange rate fluctuations for RMB[127]. - The company did not formally employ any hedging instruments or derivative products but will continue to monitor exchange rate risks closely[127].
声扬集团(08163) - 2020 - 年度财报