Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of $78,566, a significant decrease from $12,551 in 2023[4] - Interest income decreased to $6,485 from $9,881, while dividend income fell to $15,395 from $23,442[4] - The company experienced a net loss of $357,498 for the year, compared to a net loss of $455,345 in 2023, indicating an improvement of approximately 21.5%[4] - The pre-tax loss for the year ending December 31, 2024, was $357,498 million, compared to a pre-tax loss of $455,345 million for the year ending December 31, 2023[21][31] - The company recorded a net loss of $357,498 for the year ended December 31, 2024, compared to a net loss of $455,345 in 2023, reflecting a decrease in losses due to net gains from securities investments[44] - Realized gains from the sale of securities amounted to $64,127 in 2024, a significant improvement from a realized loss of $18,852 in 2023[44] Assets and Liabilities - Total assets decreased to $1,248,122 from $1,627,405, reflecting a decline of about 23.3%[5] - The total equity of the company decreased to $1,197,734 from $1,555,232, a reduction of approximately 23%[5] - The company's net asset value per share decreased to $0.11 from $0.15, representing a decline of 26.7%[5] - The total liabilities as of December 31, 2024, were classified as unallocated liabilities[25] - The company's total assets decreased to $1,197,734 as of December 31, 2024, down from $1,555,232 in 2023, indicating a decline in asset value[42] Investment Performance - The company reported a significant unrealized gain of $5,837,201 from financial assets measured at fair value through profit or loss[6] - The company reported a net gain of $64,127 million from the sale of financial assets classified at fair value through profit or loss for the year ending December 31, 2024[27] - The company’s investment portfolio achieved a return of 4.64% in 2024, primarily driven by the telecommunications sector[48] - The company’s investment in non-listed equity was written down to zero due to ongoing operational losses and potential liabilities[36] - The company has two reportable operating segments: listed securities and unlisted securities, focusing on investments in equity securities listed on relevant exchanges and investments in non-listed equity securities and open-ended funds[19] Corporate Governance - The company appointed a new independent non-executive director on December 27, 2024, complying with the corporate governance code requirement B.2.4(b) after all independent non-executive directors had served over nine years[70] - The audit committee, consisting of three independent non-executive directors, reviewed the company's accounting standards and policies for the fiscal year ending December 31, 2024[75] - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming that all directors complied with the standards up to December 31, 2024[71] - The board believes that the current structure does not undermine the principles of corporate governance regarding the balance of power and authority between board management and business management[69] - The company has faced challenges in recruiting suitable independent non-executive directors due to talent outflow and economic uncertainties in the securities market[70] Market Conditions - The Hang Seng Index (HSI) experienced a decline of 13.2%, reaching a low of 14,794 points in late January 2024, before rebounding to 16,541 points by the end of March[50] - In May 2024, the HSI peaked at 19,706 points, but fell to 17,718 points in June due to the lack of interest rate cuts from the Federal Reserve and escalating US-China trade tensions[50] - The HSI dropped to a low of 16,441.4 points in August, marking a 16.6% decline from its May peak[50] - By the end of the third quarter, the HSI closed at 21,133.6 points, following a significant rise of over 2,886 points or 15.8% after stimulus measures were announced for the Chinese economy[50] - For the full year 2024, the HSI recorded a gain of 17.7%, with the best-performing sectors being internet-related technology, finance, and telecommunications[52] Administrative and Operational Costs - The company’s administrative expenses decreased to $407,016 from $428,591, showing a reduction of about 5%[4] - The company’s operating costs for the year were $436,064, which offset the gains from securities investments[44] - The total compensation for directors in 2024 was $50,087 million, slightly up from $49,815 million in 2023[28] - The highest-paid employee's total compensation for 2024 was $98,813 million, down from $132,538 million in 2023[29] Compliance and Reporting - The company has adopted revised Hong Kong Financial Reporting Standards for the fiscal year, impacting its financial reporting[9] - The company has reassessed its liabilities as of January 1, 2023, and believes that the classification of liabilities as current or non-current remains unchanged upon the initial application of the revised standards[11] - The revised Hong Kong Financial Reporting Standards (HKFRS) will come into effect on January 1, 2026, and January 1, 2027, respectively, with the company planning to apply these standards when they become effective[14] - The introduction of HKFRS 18 requires entities to categorize all income and expenses into five categories: operating, investing, financing, income tax, and discontinued operations, with new subtotal definitions[15] - The amendments to HKFRS 9 clarify the derecognition date of financial assets or liabilities and introduce accounting policy options for derecognition under specified conditions[17] - The annual report will be published on the Hong Kong Stock Exchange website and the company's website, with printed copies available upon shareholder request[76] Liquidity and Financial Health - The company's current ratio was approximately 24.77 as of December 31, 2024, compared to 22.55 in 2023, indicating improved liquidity[59] - The total debt to total assets ratio was approximately 4.04% as of December 31, 2024, slightly down from 4.44% in 2023, reflecting stable financial health[59] - The company has no significant contingent liabilities or major litigation as of December 31, 2024, ensuring a stable operational environment[57] - As of December 31, 2024, the company's cash and bank balances stood at $1,064,658, a decrease from $1,117,399 in 2023, with no dividends paid during the year[56] Securities Trading and Compliance - The company has established written guidelines for employees regarding securities trading, which are not less stringent than the standard code[73] - The company has not identified any violations of the employee written guidelines during the year[73] - There were no purchases, sales, or redemptions of the company's listed securities during the year[74] - The board consists of diverse experiences and professional skills, contributing collectively to the company's leadership and management[69]
SHANGHAI GROWTH(00770) - 2024 - 年度业绩