Acquisition and Strategic Transformation - The company successfully acquired Deep Neural Computing Company Limited (DNCC), a leader in AI, deep neural networks, and quantitative trading algorithms, marking a strategic shift towards AI-driven trading technology solutions [5]. - The company reported a strategic transformation to become a provider of AI trading technology solutions, responding to evolving market dynamics [10]. - The company aims to optimize operational capabilities and enhance customer service through the integration of DNCC into its investment management services [5]. - The acquisition of DNCC contributed approximately HKD 9.22 million in revenue post-acquisition, enhancing the company's capabilities in AI-driven investment strategies [15]. - The company completed the acquisition of DNCC's entire issued share capital on March 22, 2024, enhancing its technology-driven investment management business [28]. - The company has developed multiple trading algorithms based on machine learning and deep learning, commercializing its core product "IGC Prophet" for various international financial trading fields [33]. Financial Performance - Total revenue for the year ended June 30, 2024, was HKD 226.71 million, a decrease of 32.11% from HKD 333.96 million in the same period last year [11]. - Gross profit increased to HKD 13.07 million, up fourfold from HKD 3.18 million, with a gross margin improvement from 0.95% to 5.76% [11]. - The company reported a pre-tax loss of HKD 38,492 thousand, which is comparable to the pre-tax loss of HKD 38,539 thousand in 2023 [200]. - The net loss for the year was HKD 39,988 thousand, compared to a net loss of HKD 38,707 thousand in the previous year [200]. - The overall financial performance indicates challenges in revenue generation and increased costs, necessitating strategic adjustments moving forward [200]. Cost Management and Operational Efficiency - Despite a decline in total revenue, the company improved its gross margin due to effective cost management, indicating resilience amid global economic uncertainties [6]. - The company remains committed to maintaining a strong financial foundation while exploring strategic growth opportunities despite market challenges [22]. - The company aims to maintain high business ethics while providing stable returns to shareholders [35]. Shareholder and Capital Management - The company issued new shares to finance the acquisition of DNCC, strengthening its capital structure and providing flexibility for future growth plans [6]. - The company raised approximately HKD 286 million from the rights issue and subscription, with net proceeds of about HKD 284 million after expenses [25]. - The company has a significant shareholder with 390,821,084 shares, representing 70.01% of the issued share capital [157]. - The company reported no dividends for the reporting period [151]. Employee Management and Corporate Governance - A new employee stock option plan was launched to attract and retain top talent, ensuring the company has the right personnel to drive innovation [7]. - The company employed 35 staff as of June 30, 2024, down from 36 staff as of June 30, 2023 [31]. - The company has established arrangements for employees to confidentially report any concerns regarding financial reporting or internal controls [45]. - The company has adopted the corporate governance code and has complied with its provisions, except for the absence of a chairman since July 25, 2023 [35]. Environmental, Social, and Governance (ESG) Initiatives - The company reported a significant focus on environmental, social, and governance (ESG) strategies, reflecting its commitment to sustainable development and corporate social responsibility [84]. - The company aims to minimize its operational impact on the environment while creating value for the community, employees, and stakeholders [86]. - The company successfully reduced nitrogen oxide emissions from 1.96 kg in 2023 to 0.56 kg in 2024, representing a 71.43% decrease [97]. - The company has established a waste reduction program, encouraging the use of recycled paper and double-sided printing [100]. - The company has implemented policies for effective resource usage, including energy, water, and raw materials [132]. Risk Management and Compliance - The company has implemented a comprehensive legal and compliance risk management framework to mitigate risks associated with regulatory changes [172]. - The audit committee is responsible for overseeing the appointment and remuneration of external auditors, ensuring transparency and accountability in financial reporting [43]. - The company has established a whistleblowing policy to allow employees and business partners to report concerns regarding misconduct or unethical behavior confidentially [75]. - The company has not reported any violations of laws related to child labor or forced labor during the reporting period [121].
INTL GENIUS(00033) - 2024 - 年度财报