Financial Performance - The company recorded revenue of approximately HKD 90.3 million for the fiscal year ending September 30, 2024, an increase of about 5.7% compared to HKD 85.4 million in the previous year[9]. - The company reported a loss of approximately HKD 77.2 million for the current year, compared to a loss of HKD 14.3 million in the previous year[9]. - The company recorded a revenue increase of approximately 9.8% to about HKD 85,500,000 for the year, compared to HKD 77,900,000 in the previous year[34]. - Revenue from licensed business increased by approximately HKD 8,700,000 or 56.5% to about HKD 24,100,000, driven mainly by an increase in placement and underwriting services[36]. - The total value of placements and underwriting handled by the company increased from approximately HKD 322,700,000 to about HKD 1,289,400,000[39]. - The company recorded a loss from continuing operations of approximately HKD 73,100,000 for the year, compared to a loss of HKD 17,500,000 in the previous year[47]. - The net loss margin for the year was approximately 85.5%, compared to 16.8% in the previous year[50]. Rights Issue and Financial Strategy - A rights issue has been proposed, offering three shares for every existing share held, expected to be completed by March 2025, to strengthen financial position and improve liquidity[9]. - Of the estimated net proceeds of HKD 21.8 million from the rights issue, HKD 6.4 million is allocated for establishing a wholly-owned subsidiary in a gaming-friendly jurisdiction, and HKD 15.4 million for marketing expenses to attract new customers[10]. - The company plans to raise up to approximately HKD 32,100,000 through the issuance of up to 128,452,080 rights shares at a subscription price of HKD 0.250 per share[25]. - The net proceeds from the rights issue are intended for investment in the online gaming industry and as general working capital for the group[25]. - The company entered into a subscription agreement for convertible bonds with a total principal amount of HKD 5,670,000, which may convert into up to 18,000,000 shares at an initial conversion price of HKD 0.315 per share[29]. - The net proceeds from the convertible bond subscription are expected to be approximately HKD 5,670,000, intended for general working capital[30]. Business Operations and Strategy - The company has signed a non-binding letter of intent with Chromatic Media Ltd. for potential strategic cooperation in the gaming industry, which is projected to grow at a CAGR of approximately 13.6% from 2023 to 2030[10]. - The company plans to explore new business opportunities, particularly focusing on acquisition targets in the Greater Bay Area, in addition to investing in gaming and entertainment businesses[13]. - The company sold its environmental, social, and governance consulting services business to streamline operations and reduce operational costs, following the uncertainty regarding mandatory disclosures for small and medium-sized listed companies[11]. - The company completed the sale of 85% of its stake in Fortune Securities on December 23, 2022, resulting in the cessation of its financial performance being consolidated into the group accounts[20]. - The company sold 100% of its stake in ESGrowth Limited and 70% of its stake in Hong Kong Sustainability Strategic Advisory Limited for HKD 1 on September 30, 2024, marking the end of these non-licensed businesses[21]. Revenue Composition - The licensed business, primarily corporate finance advisory, accounted for approximately 10.5% of total revenue from continuing operations for the fiscal year[17]. - The other licensed businesses, including placing and underwriting services and asset management services, contributed approximately 17.7% and 0.1% respectively to total revenue from continuing operations[17]. - The group generated approximately 40.5% of total revenue from business consulting services in the current fiscal year[19]. - Other non-licensed businesses contributed to total revenue as follows: accounting and tax services at 18.3%, company secretarial services at 7.3%, human resources services at 2.4%, and risk management and internal control advisory services at 3.2%[19]. Governance and Management - The company has a strong focus on corporate governance and compliance, with independent directors providing oversight on conflicts of interest and strategic performance[82]. - The management team has extensive experience in finance, with members having held senior positions in various financial institutions and regulatory bodies[86]. - The company emphasizes the importance of independent opinions in its decision-making processes, particularly regarding resource allocation and ethical standards[82]. - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a diverse governance structure[95]. - The roles of the chairman and CEO are separated, with Mr. Li Minqiang as the executive chairman and Mr. Xu Yongquan as the CEO, promoting clear accountability and independence[97]. - The company has adopted the corporate governance code as per GEM Listing Rules Appendix C1 and has complied with all applicable provisions for the fiscal year ending September 30, 2024[94]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a comprehensive environmental, social, and governance (ESG) policy covering key areas such as environmental protection and labor rights[149]. - The company aims to reduce emissions and conserve resources, aligning its goals with local and international standards[153]. - The board of directors oversees ESG matters and sets strategies and objectives for sustainable development[146]. - The company engages regularly with stakeholders to gather feedback on its ESG policies and performance[153]. - The ESG committee, composed of senior management, is responsible for monitoring the company's sustainability and climate-related issues[147]. - The company promotes an inclusive culture and workplace diversity, providing training to help employees understand and respect differences[153]. Employee and Community Engagement - The total employee benefits cost for the year was approximately HKD 62,400,000, down from HKD 88,000,000 in 2023, with a total of 144 employees as of September 30, 2024[70]. - The group emphasizes a zero-tolerance policy towards child and forced labor, extending this commitment to business partners[187]. - Employee engagement is prioritized through open communication channels, including team meetings and internal surveys[188]. - The company has committed HKD 520,000 to support various charitable organizations and community-focused activities from 2023 to 2025[197]. - A total of 50 volunteers have been mobilized by the company’s charity foundation to participate in social affairs in the Wan Chai neighborhood[200].
亦辰集团(08365) - 2024 - 年度财报