Financial Performance - For the year ended December 31, 2024, total revenue increased to HKD 413,551,000, up 19.6% from HKD 345,654,000 in 2023[3] - Net investment income for 2024 was HKD 118,808,000, a significant recovery from a loss of HKD 218,384,000 in 2023[3] - The company reported a net loss attributable to equity holders of HKD 73,367,000 for 2024, compared to a profit of HKD 119,537,000 in 2023, reflecting a decline of 161.4%[4] - Basic and diluted loss per share for 2024 was HKD (1.2), compared to earnings of HKD 1.9 per share in 2023[4] - The reported segment revenue for the year 2024 is HKD 417,738,000, an increase from HKD 353,271,000 in 2023, representing a growth of approximately 18.3%[19] - The reported segment performance for 2024 showed a loss of HKD 86,283,000, compared to a profit of HKD 121,535,000 in 2023, reflecting a decline in profitability[19] - The company’s pre-tax loss for 2024 was HKD 66,049,000, compared to a pre-tax profit of HKD 117,871,000 in 2023, indicating a significant decrease in financial performance[19] - Total tax expense for 2024 amounted to HKD 7,318,000, compared to a tax credit of HKD 1,666,000 in 2023[28] - The company did not declare a final dividend for 2024, while a special dividend of HKD 68,168,000 was paid in 2023[30] Assets and Liabilities - Total assets increased to HKD 4,189,276,000 as of December 31, 2024, compared to HKD 4,064,012,000 in 2023, representing a growth of 3.1%[6] - The company’s liabilities totaled HKD 2,195,917,000 in 2024, a slight increase from HKD 2,002,597,000 in 2023, reflecting a growth of 9.7%[6] - The company’s equity attributable to equity holders decreased to HKD 1,993,359,000 in 2024 from HKD 2,061,415,000 in 2023, a decline of 3.3%[6] - The total accounts payable increased to HKD 1,220,571,000 in 2024 from HKD 1,076,880,000 in 2023, reflecting an increase of approximately 13.3%[42] - The group’s net assets as of the end of 2024 were HKD 1.993 billion, down from HKD 2.061 billion in 2023, resulting in a debt-to-equity ratio of 34% compared to 33% in the previous year[81] Cash Flow and Investments - Cash and cash equivalents rose to HKD 156,675,000 in 2024, up from HKD 122,380,000 in 2023, indicating a 28.0% increase[6] - The company recorded a net expected credit loss reversal of HKD 21,247,000 in 2024, down from HKD 61,954,000 in 2023[4] - The fair value change of investment properties resulted in a gain of HKD 8,580,000 in 2024, compared to a loss of HKD 42,120,000 in 2023[4] - The company completed the sale of 11,739,128 shares of a non-listed equity investment for USD 8,827,000 (approximately HKD 68,848,000) on January 23, 2025[42] - The company’s investment properties are all held in the United States, with a total value of HKD 851,760,000 as of December 31, 2024[39] Revenue Streams - Commission income from corporate finance business decreased significantly to HKD 9,133,000, down 70.9% from HKD 31,322,000 in 2023[21] - Interest income for the year 2024 reached HKD 204,834,000, compared to HKD 433,963,000 in 2023, indicating a decline of about 52.8%[18] - Interest income from credit loans and bonds dropped to HKD 55,094,000, a decline of 80.7% from HKD 285,931,000 in the previous year[21] - The corporate finance business revenue plummeted by approximately 71% from HKD 31 million in 2023 to HKD 9 million in 2024, attributed to delays in clients' IPO timelines[53] - The asset management business revenue decreased from HKD 11 million in 2023 to HKD 9 million in 2024, reflecting a decline in performance[54] - Brokerage business revenue fell by 20% from HKD 81 million in 2023 to HKD 65 million in 2024, while brokerage interest income slightly increased by 1% to HKD 147 million[52] Operational Efficiency - Total operating expenses decreased to HKD 51,301,000 from HKD 57,999,000 in 2023, reflecting a reduction of 11.9%[24] - Direct costs decreased by 22% from HKD 94 million in 2023 to HKD 73 million in 2024, mainly due to reduced commission expenses from lower total commission income[62] - Employee costs reduced by 9% from HKD 174 million in 2023 to HKD 159 million in 2024, attributed to resource streamlining and team optimization[62] Credit and Risk Management - The company has adopted a credit risk policy to manage its lending operations, which includes compliance with applicable laws and regulations, credit assessments of potential borrowers, and evaluation of collateral[68] - The expected credit loss is calculated using the formula: Expected Credit Loss = Default Risk Exposure × Default Probability × (1 - (Recovery Rate × Forward-Looking Factors) Present Value)[67] - The company applies strict procedures for credit approval, including due diligence and credit assessments of potential borrowers[75] - The risk management department reviews loan risk levels daily and submits monthly reports to the executive committee[77] - The group has established a three-tier risk management system to mitigate unexpected market fluctuations[89] Market Outlook - The company remains optimistic about opportunities in 2025 despite facing challenges in 2024, including a decrease in transaction volume and delays in IPO schedules[50] - The company reported a significant improvement in the Hong Kong stock market atmosphere, with the Hang Seng Index and daily trading volume showing positive trends[96] - The company's securities business performance in the second half of 2024 is expected to surpass that of the first half, indicating a recovery from previous lows[96] Compliance and Governance - The company has adopted a standard code of conduct for securities trading by directors, ensuring compliance with the latest listing rules[100] - The company’s audit committee has reviewed the audited annual performance for the year ending December 31, 2024, discussing accounting principles and internal controls[101]
华富建业金融(00952) - 2024 - 年度业绩