Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 80,659,000, a decrease of 9.5% from HKD 89,548,000 in 2023[2] - Adjusted net loss for the year was HKD 1,401,000, significantly improved from a loss of HKD 22,630,000 in the previous year[2] - Adjusted EBITDA for the year was HKD 6,599,000, a recovery from an adjusted EBITDA loss of HKD 10,577,000 in 2023[2] - The company reported a total comprehensive loss of HKD 10,094,000 for the year 2024, compared to a loss of HKD 13,425,000 in 2023[12] - The cumulative loss increased to HKD 238,675,000 by December 31, 2024, up from HKD 228,896,000 at the end of 2023[12] - The company reported a pre-tax loss of HKD 8,850,000 for the year ended December 31, 2024, compared to a pre-tax loss of HKD 13,248,000 for the previous year, indicating an improvement of approximately 33.3%[24][26] - The reported loss attributable to equity shareholders for the year ended December 31, 2024, was HKD 9,779,000, compared to HKD 13,118,000 for the year ended December 31, 2023, reflecting a reduction of approximately 25.5%[36] - The net comprehensive loss for the year was HKD 8.85 million, reduced from HKD 13.24 million in the previous year, primarily due to decreased general and administrative expenses[49] Revenue Breakdown - Revenue from asset management decreased by 44.5% to HKD 23,707,000 from HKD 42,746,000[4] - Revenue from securities underwriting and placement was HKD 18,295,000 in 2024, with no revenue reported in 2023[21] - The company generated other income of HKD 12,611,000 in 2024, up from HKD 7,011,000 in 2023, marking an increase of approximately 80.5%[29] - Revenue from wine and beverage trading increased from HKD 36.64 million to HKD 44.46 million, attributed to improved sales efforts and market conditions[45] - The asset management revenue for the year was HKD 23.71 million, a decrease from HKD 42.75 million in the previous year[50] - Investment consulting service revenue increased to HKD 0.53 million from HKD 0.44 million year-on-year[54] - Revenue from wine and beverage trading increased to HKD 44.46 million from HKD 36.64 million, with a reduced loss of HKD 3.89 million compared to HKD 6.99 million in the previous year[56] Asset Management and Investments - The company continues to focus on asset management and investment advisory services as its primary business lines[20] - The management of assets under management decreased to USD 130 million from USD 149 million year-over-year, primarily due to a decrease in the fair value of related investments[44] - As of December 31, 2024, Dongjian Asset Management managed 10 funds with total assets under management of $130 million and subscriptions from investors totaling $398 million[50] - The company acquired 60% of Shandong Civil Aviation Dongsheng Investment Management Co., Ltd. for RMB 3.15 million, recording a share of profit from the joint venture of HKD 1.98 million[51] - The healthcare investment fund aims to raise between $1.5 billion and $1.9 billion, with fundraising still ongoing[53] Financial Position - Total assets decreased to HKD 308,484,000 from HKD 323,578,000, reflecting a decline of 4.7%[2] - Net asset value decreased to HKD 270,649,000 from HKD 279,983,000, a decline of 3.3%[2] - The total amount of debt investments at amortized cost, net of loss provisions, was HKD 340 thousand for 2024, down from HKD 21.02 million in 2023[10] - The total fair value of financial assets measured at fair value through profit or loss was HKD 111.08 million in 2024, compared to HKD 115.03 million in 2023[41] - The group’s asset-liability ratio as of December 31, 2024, was 2.2%, down from 3.3% as of December 31, 2023, with total equity of HKD 270.65 million[84] - As of December 31, 2024, the group had cash and cash equivalents of HKD 128.06 million, an increase from HKD 104.79 million as of December 31, 2023, with total assets amounting to HKD 308.48 million[84] Corporate Governance and Compliance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[16] - The company has not reported any new products or technologies in the current financial year[20] - The company did not recommend any dividend for the year, consistent with the previous year[35] - The company has no significant investments or acquisitions during the review period, maintaining a cautious approach towards potential business opportunities[89][90] - The company has fully complied with all corporate governance codes during the review year[105] - The board expressed gratitude to all business partners, management, employees, and shareholders for their ongoing support[112] - The board of directors includes both executive and independent non-executive members, ensuring diverse governance[113] Legal and Regulatory Matters - A legal provision of HKD 5.36 million was made for litigation costs related to RD notes, following a court ruling against the company[66] - The company has decided not to appeal the court's decision regarding RD notes after consulting legal advisors[66] - As of December 31, 2023, the group has submitted applications for new bonds under the restructuring plan, receiving new CFLD bonds in January 2024, with an expected credit loss provision of HKD 20.29 million, resulting in a carrying value of HKD 0.72 million, which is 0.2% of the group's total assets[73] Employee and Management Relations - The group employs 30 staff in Hong Kong and 1 in China, maintaining good relations with employees and providing various benefits[101] - The board has established a remuneration committee to determine the compensation of directors and senior management, including a stock option plan to incentivize eligible employees[103][104]
东建国际(00329) - 2024 - 年度业绩