Financial Performance - The company recorded a post-tax loss of HKD 57 million for the fiscal year 2024, an improvement from a post-tax loss of HKD 79 million in fiscal year 2023[7]. - Total comprehensive expenses for fiscal year 2024 amounted to HKD 82 million, down from HKD 94 million in fiscal year 2023[7]. - The company reported a loss before tax of HKD 56,409,000 for 2024, an improvement from a loss of HKD 79,181,000 in 2023, representing a reduction of approximately 29%[132]. - The net loss for the year was HKD 56,840,000, down from HKD 78,940,000 in the previous year, marking a 28.0% improvement[126]. - The company reported a significant increase in dividend income to HKD 6,453,000 from HKD 4,177,000, representing a 54.5% increase[125]. - The company experienced a net loss from financial assets and liabilities of HKD 28,838,000, slightly higher than the previous year's loss of HKD 28,022,000[125]. - The company reported a decrease in bank balances and cash in trust accounts by HKD 72,651,000, compared to a decrease of HKD 145,670,000 in the previous year, indicating a 50% improvement[132]. - The company incurred audit fees of HKD 2,029,000 for audit services and HKD 860,000 for non-audit services for the fiscal year ending June 30, 2024[66]. Revenue Generation - The financial intermediary business generated commission and fee income of HKD 21 million in fiscal year 2024, compared to HKD 15 million in fiscal year 2023[8]. - Interest income increased from HKD 18 million in fiscal year 2023 to HKD 21 million in fiscal year 2024 due to rising interest rates[8]. - In the fiscal year 2024, the total revenue from the brokerage and lending segment was HKD 29 million, an increase from HKD 26 million in fiscal year 2023, primarily due to increased bank interest income[11]. - The total revenue from the corporate finance and capital markets segment was HKD 11 million in fiscal year 2024, up from HKD 6 million in fiscal year 2023[12]. - The asset management segment reported total revenue of HKD 3 million in fiscal year 2024, down from HKD 4 million in fiscal year 2023[14]. - The self-investment segment generated total revenue of HKD 9 million in fiscal year 2024, compared to HKD 7 million in fiscal year 2023[15]. - Total revenue for the year ended June 30, 2024, was HKD 51,038,000, compared to HKD 40,742,000 in 2023, representing a 25.6% increase[125]. Expenses and Cost Management - General and administrative expenses decreased from HKD 72 million in fiscal year 2023 to HKD 65 million in fiscal year 2024, primarily due to reduced employee costs and the sale of asset management business in mainland China[8]. - The company’s financing costs rose to HKD 6,874,000 from HKD 5,520,000, an increase of 24.6%[125]. - The company recorded a net loss from investment properties of HKD 7,568,000, compared to a loss of HKD 2,886,000 in 2023, indicating a significant increase in losses[125]. - Other comprehensive expenses for the year totaled HKD 81,550,000, down from HKD 93,989,000 in the previous year, reflecting a 13.2% decrease[126]. Asset Management and Investments - The group recorded a revaluation loss of HKD 7 million on retail stores in Kwun Tong for fiscal year 2024, significantly higher than the HKD 1 million loss in fiscal year 2023[16]. - The group confirmed a sale of asset management services in mainland China, resulting in a gain of HKD 4 million, which improved the profitability of the asset management segment[14]. - The group’s net loss from listed equity securities investments was HKD 20 million in fiscal year 2024, an improvement from a net loss of HKD 28 million in fiscal year 2023[15]. - The group has invested in high-rated global bonds to secure returns ahead of potential interest rate cuts by the US Federal Reserve[16]. Governance and Compliance - The board consists of independent non-executive directors, with at least three members meeting the independence criteria as per listing rules[28]. - The roles of the Chairman and CEO are clearly separated, with Dr. Cai Guanshen as Chairman and Mr. Cai Guanning as CEO, ensuring a balance of power[32]. - The company emphasizes ongoing professional training for directors, ensuring they are updated on regulatory changes and corporate governance practices[30]. - The audit committee is composed entirely of independent non-executive directors, ensuring oversight and compliance[28]. - The company has established a governance framework that includes various committees to enhance corporate governance practices[41]. - The company’s governance policies and principles are reviewed annually to ensure alignment with best practices[42]. Risk Management - The risk management system is designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatements and losses[47]. - The company has established various committees, including the Investment Committee and Risk Management Committee, to identify, assess, and manage risks associated with its operations[50][51][52]. - The company is closely monitoring foreign exchange risks and will implement appropriate hedging measures if significant adverse changes occur[16]. - Credit risk arises from various areas, including counterparty defaults during settlement processes, and is managed through established credit approval and monitoring procedures[59]. Shareholder Communication - The company emphasizes the importance of maintaining good communication with shareholders through various channels[73]. - The company provides timely information through interim and annual reports, announcements, and circulars[73]. - The board is committed to improving communication and addressing shareholder inquiries in a timely manner[73]. - The company encourages direct communication from shareholders via email or fax[69]. Financial Position - As of June 30, 2024, the total assets of the group amounted to HKD 1.211 billion, with approximately 62% being liquid assets[16]. - The group’s capital-to-debt ratio was approximately 10% as of June 30, 2024[16]. - The company reported a significant decrease in total assets, amounting to HKD 753,301,000, down from HKD 924,629,000 in 2023, representing a decrease of approximately 18.5%[128]. - Total equity decreased to HKD 709,557,000 from HKD 804,952,000, reflecting a decline of about 12%[128]. Audit and Financial Reporting - The audit report confirmed that the financial statements complied with the disclosure requirements of the Hong Kong Companies Ordinance[110]. - The company’s financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, reflecting a true and fair view of the group's financial position as of June 30, 2024[110]. - The audit procedures included assessing the appropriateness of the valuation methods used for overseas unlisted equity securities and the reasonableness of the valuation results[117]. - The total impairment provision for receivables was deemed significant, necessitating careful evaluation during the audit process[115].
新华汇富金融(00188) - 2024 - 年度财报