Financial Performance - For the fiscal year ending December 31, 2024, the total revenue was HKD 42,830,000, an increase from HKD 36,799,000 in the previous year, representing a growth of approximately 16.4%[2] - Other income for the same period was HKD 1,521,000, compared to HKD 1,367,000 in the previous year, indicating an increase of about 11.3%[2] - The company reported a significant loss from fair value changes of financial assets amounting to HKD 223,400,000, which is a notable increase from the previous year's loss of HKD 0[2] - The net loss from financial assets at fair value was HKD 7,232,000, compared to a loss of HKD 3,647,000 in the previous year, reflecting a deterioration of approximately 97.5%[2] - The loss from operations was HKD 279,234,000, which is a substantial increase from the previous year's loss of HKD 67,637,000, indicating a decline of approximately 313.5%[2] - The company reported a total loss of HKD 295,056,000 for the fiscal year, compared to a loss of HKD 139,998,000 in the previous year[4] - The comprehensive loss for the year amounted to HKD 289,355,000, which is an increase from HKD 140,656,000 in the prior year[4] - The loss attributable to equity holders of the company was HKD 289,355,000, compared to HKD 138,858,000 in the previous year[4] - The company recorded a loss before tax of HKD 82,374,000, which is a significant improvement from a loss of HKD 292,747,000 in the previous year[3] - The basic and diluted loss per share for the year was HKD 97.9 cents, compared to HKD 46.1 cents in the previous year[3] - The total comprehensive loss for the year was HKD 289,355,000, compared to HKD 140,656,000 in the previous year[4] - The company’s ongoing business operations incurred a loss of HKD 78,739,000, compared to a loss of HKD 292,747,000 in the previous year[3] - The loss from discontinued operations for the year was HKD 2,309,000, compared to a loss of HKD 61,259,000 in the previous year[3] Assets and Liabilities - Non-current assets totaled HKD 382,073,000 as of December 31, 2024, compared to HKD 610,130,000 in 2023, representing a decrease of approximately 37.3%[5] - Current assets amounted to HKD 468,445,000 in 2024, down from HKD 499,184,000 in 2023, indicating a decline of about 6.2%[5] - Total liabilities reached HKD 584,698,000 in 2024, a decrease from HKD 607,511,000 in 2023, reflecting a reduction of approximately 3.8%[6] - The net asset value decreased to HKD 76,184,000 in 2024 from HKD 221,459,000 in 2023, showing a significant decline of around 65.6%[6] - The company reported a total equity of HKD 76,184,000 in 2024, down from HKD 221,459,000 in 2023, indicating a decrease of about 65.6%[6] - The company’s cash and bank balances decreased to HKD 36,745,000 in 2024 from HKD 52,031,000 in 2023, representing a decline of approximately 29.3%[5] - The total value of non-current liabilities was HKD 189,636,000 in 2024, down from HKD 280,344,000 in 2023, reflecting a decrease of about 32.4%[6] - The company’s financial assets at fair value amounted to HKD 39,651,000 in 2024, compared to HKD 46,996,000 in 2023, indicating a decrease of approximately 15.6%[5] - The total current liabilities were HKD 584,698,000 in 2024, a slight decrease from HKD 607,511,000 in 2023, showing a reduction of about 3.8%[6] Financing and Capital Structure - The company recorded a net loss of HKD 295,056,000 for the year ending December 31, 2024, with cash used in operating activities amounting to HKD 45,986,000[10] - Current liabilities exceeded current assets by HKD 116,253,000, with cash and cash equivalents totaling HKD 36,745,000, and total borrowings amounting to HKD 225,387,000, of which HKD 187,387,000 are classified as current liabilities[10] - The company has received a total of HKD 50,000,000 in unsecured, interest-free loans from a major shareholder, with a maturity date of December 31, 2026[16] - A director has also provided an additional HKD 50,000,000 in unsecured loans to support the business[16] - The company has successfully renewed a revolving bank facility of HKD 145,000,000 after December 31, 2024, and will continue to negotiate with banks for ongoing financing[11] - The board believes that the company will have sufficient working capital to meet its financial obligations for the next twelve months based on cash flow forecasts and available financial resources[12] - The company is considering various alternatives to strengthen its capital base, including cost restructuring and seeking new investments and business opportunities[16] - There is significant uncertainty regarding the company's ability to implement its plans and measures for continued operations[13] - The company has a significant reliance on financial support from its major shareholders and directors to continue as a going concern[10] Revenue Breakdown - Total revenue for the year ended December 31, 2024, was HKD 36,799 million, a decrease from HKD 42,830 million in the previous year, representing a decline of approximately 14.2%[17] - Customer contract revenue amounted to HKD 15,128 million for the year ended December 31, 2024, compared to HKD 22,535 million in the previous year, reflecting a decrease of about 33.0%[19] - Revenue from commission and management fees was HKD 10,354 million for the year ended December 31, 2024, down from HKD 17,263 million, indicating a decline of approximately 40.0%[17] - Interest income from loans and trade receivables increased to HKD 5,167 million in 2024, compared to HKD 6,814 million in 2023, a decrease of about 24.1%[17] - The company reported a total loss before tax from continuing operations of HKD 292,747 million for the year ended December 31, 2024, compared to a loss of HKD 82,374 million in the previous year[20] - The revenue from external customers in the wealth management and underwriting segment was HKD 1,710 million for the year ended December 31, 2024, down from HKD 1,441 million in 2023, a decrease of approximately 18.7%[20] - The company generated HKD 6,800 million in rental income for the year ended December 31, 2024, compared to HKD 5,595 million in the previous year, representing an increase of about 21.5%[17] - The segment revenue from margin financing and securities trading was HKD 10,814 million for the year ended December 31, 2024, down from HKD 11,377 million in 2023, a decrease of approximately 4.9%[20] - The company reported a net loss of HKD 260,634 million across all segments for the year ended December 31, 2024, compared to a net loss of HKD 50,970 million in the previous year[20] - Total interest income from banks and financial institutions increased to HKD 9,671 million in 2024, compared to HKD 6,372 million in 2023, an increase of approximately 52.0%[17] Operational Changes and Business Strategy - The group decided to terminate its media publishing and financial public relations services to better allocate resources[26] - The group sold the related assets of the "JESSICA" brand for HKD 320,000 to JK Ventures Limited, which is 50% owned by a director of the company[27] - The group sold all shares of ZYC Holding Group Limited and ZYC Holding No.1 Limited for HKD 1 to an independent third party in September 2024[27] - The company sold its entire equity interest in Capital Publishing Limited and Capital Publishing Management Limited to Four Seas Travel Group for HKD 1[28] - The company has decided to terminate its jewelry business in Nanjing to better allocate resources, with the business officially deregistered in November 2023[29] - The total revenue for the terminated media and jewelry businesses for the fiscal year ending December 31, 2024, was HKD 36,166,000, compared to HKD 24,955,000 for the previous year[30] - The company reported a loss of HKD 2,309,000 for the terminated media business in the fiscal year ending December 31, 2024, and a loss of HKD 58,519,000 for the previous year[31] - The basic and diluted loss per share for the terminated businesses was HKD 0.7 for 2024, compared to HKD 19.5 for 2023[31] - The company reported a total loss attributable to equity holders of HKD 295,056,000 for the current year, up from HKD 138,898,000 in the previous year[32] - The loss from continuing operations for the current year was HKD 292,747,000, compared to HKD 78,739,000 for the previous year[32] - The average number of ordinary shares issued during the year remained constant at 301,277,070 shares for both years[32] - The company did not need to adjust the basic loss per share for the convertible bonds and stock options that were not exercised during the fiscal years[33] Investment and Valuation - As of December 31, 2023, the fair value of the investment properties was HKD 286,000,000, down from HKD 509,400,000 in 2022, representing a decrease of approximately 44%[35] - The group has pledged investment properties valued at HKD 286,000,000 to support general bank financing as of December 31, 2023[36] - The group's receivables primarily stem from margin financing and credit lending activities during the year[39] - As of the reporting period, the total receivables amounted to HKD 38,081,000, after accounting for impairment losses of HKD 7,425,000[42] - The group's trade payables were HKD 25,791,000, with amounts due within three months being HKD 24,724,000[44] - The group acquired leasehold land use rights through the acquisition of Genius Year Limited on January 13, 2023, with lease terms ranging from 70 years[37] - The group engages in securities and commodities trading, insurance brokerage, corporate consulting, and media services, contributing to its trade receivables[42] - The group employs external valuers annually to assess the fair value of its properties, ensuring market knowledge and independence[35] - The group's financial assets are primarily listed equity investments in Hong Kong, valued at fair value through profit or loss[38] - The group has a strategy focused on maintaining a diversified portfolio of commercial properties in Hong Kong[35] Shareholder and Capital Management - As of December 31, 2024, major shareholders and the company have provided a total of HKD 145,680,000 in unsecured interest loans, an increase from HKD 89,800,000 in 2023[47] - The outstanding loans after exemptions amount to HKD 1,600,000 as of December 31, 2024[47] - The company issued HKD 50,000,000 in convertible bonds at a conversion price of HKD 0.22 per share on April 7, 2020[48] - The convertible bonds issued in 2020 have a maturity of three years and are interest-free, allowing conversion into a maximum of 227,272,727 shares[49] - The company entered into a conditional sale agreement to acquire Genius Year Limited for HKD 89,840,000 in convertible bonds, completed on January 13, 2023[51] - The 2023 convertible bonds have a maturity of three years with an annual interest rate of 1% and a conversion price of HKD 0.32 per share, allowing conversion into a maximum of 280,750,000 shares[52] - The total issued and paid-up share capital remains at 301,277,070 shares for both 2023 and 2024, with a total equity of HKD 1,085,474,000[55] - The company’s convertible bonds are classified as non-current liabilities as of December 31, 2024, and December 31, 2023[50] - The fair value measurement of the convertible bonds is categorized under Level 3, indicating significant unobservable inputs[53] - The total liabilities related to the convertible bonds are reported as HKD 132,442,000 for 2024 and HKD 120,093,000 for 2023[54] Market and Economic Context - The group's consolidated revenue from continuing operations for the fiscal year ending December 31, 2024, was HKD 36.8 million, a decrease from HKD 42.8 million in 2023, primarily due to a drop in the asset and wealth management segment's revenue from HKD 11 million to HKD 2.8 million[56] - Total expenses from continuing operations amounted to HKD 72.5 million, down from HKD 88.4 million in 2023, while the group reported a consolidated loss from continuing operations of HKD 292.7 million, compared to HKD 78.7 million in 2023[56] - The group decided to terminate its media publishing and financial public relations services, resulting in a combined loss of HKD 2.3 million from discontinued operations, down from HKD 61.3 million in 2023[57] - The average daily trading volume in the Hong Kong stock market increased by 25.5% in 2024, with total capital raised through initial public offerings rising by 22% compared to the previous year[60] - The Hang Seng Index rose by 17.7% from 17,047 points on December 29, 2023, to 20,059 points on December 31, 2024[60] - Revenue from margin financing and credit lending increased by approximately 12.6% to HKD 14.6 million, while the segment recorded a slight operating loss of HKD 300,000, an improvement from a loss of HKD 6.3 million in 2023[61] - The asset and wealth management segment's revenue decreased by 74.7% to HKD 2.8 million, with operating losses increasing by approximately 120.3% to HKD 6.6 million[62] - Revenue from corporate advisory and underwriting services increased to HKD 1.7 million in 2024, up from HKD 1.4 million in 2023[63] - The group aims to enhance its financial platform and develop a multi-tiered "one-stop" wealth management service platform to improve customer service experience[62] - The group's investment portfolio as of December 31, 2024, is valued at HKD 39,700,000, down from HKD 47,000,000 in 2023, reflecting a decrease of approximately 15.4%[64] - The market investment fair value loss for the fiscal year 2024 is HKD 3,600,000, an improvement from a loss of HKD 7,200,000 in 2023, indicating a reduction of 50%[64] - The group has terminated its media business, resulting in a revenue of HKD 5,100,000 and a pre-tax loss of HKD 2,300,000 for the reporting period, compared to HKD 25,000,000 and HKD 58,500,000 respectively in 2023[65] - Rental income for the fiscal year 2024 increased to HKD 6,800,000 from HKD 5,600,000 in 2023, representing a growth of approximately 21.4%[66] - The fair value of investment properties as of December 31, 2024, is HKD 286,000,000, significantly down from HKD 509,400,000 in 2023, indicating a decrease of about 44%[66] - The group completed the acquisition of Genius Year Limited for HKD 89,800,000 through the issuance of convertible bonds, aiming to expand into the forestry business[67] - The capital debt ratio as of December 31, 2024, is approximately 80.8%, up from 64.8% in 2023, indicating increased leverage[68] - The group's cash balance as of December 31, 2024, is HKD 36,700,000, down from HKD 52,000,000 in 2023, reflecting a decrease of approximately 29.5%[68] - The total employee count as of December 31, 2024, is 62, a significant reduction from 146 in 2023, indicating a workforce downsizing[73] - The group recorded a revaluation loss of HKD 223,400,000 on investment properties for the fiscal year 2024, which is a non-cash item and does not impact cash flow[66] - The group reported a net loss of HKD 295.1 million for the year ending December 31, 2024, with cash used in operating activities amounting to HKD 46 million[82] - As of December 31, 2024, the group's net current liabilities were HKD 116.3 million, with cash and cash equivalents totaling HKD 36.7 million[82] - The group plans to focus more resources on improving the financial services segment's performance following the cessation of its media and jewelry businesses[77]
南华金融(00619) - 2024 - 年度业绩