Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of approximately HKD 53,982,860, a decrease of about 6% from HKD 57,960,680 in 2023[9] - The net loss for the fiscal year was approximately HKD 21,865,887, compared to a net loss of HKD 49,612,842 in the previous year, indicating an improvement in financial performance[9] - Revenue from the advertising and media business was approximately HKD 46,100,000, down 6% from HKD 49,200,000 in 2023, while financial services revenue decreased by 10% to HKD 7,900,000 from HKD 8,700,000[10] - The company's revenue for the year ended December 31, 2024, was approximately HKD 54,000,000, a decrease of about 7% compared to HKD 58,000,000 in 2023[29] - Gross profit for the same period was approximately HKD 34,400,000, down about 5% from HKD 36,300,000 in 2023, with a gross margin increase from 63% to 64% due to a 10% reduction in service costs[29] - The net loss attributable to the owners of the parent company was approximately HKD 20,900,000, significantly improved from a loss of HKD 48,600,000 in the previous year[33] - Administrative expenses decreased to approximately HKD 74,200,000, down about 6% from HKD 78,700,000 in 2023, attributed to lower operating costs[30] - Other income and losses increased significantly to approximately HKD 24,600,000 from HKD 3,000,000 in 2023, primarily due to an increase in the fair value of equity investments[29] - The company recorded a loss before interest, tax, depreciation, and amortization of approximately HKD 35,200,000, compared to HKD 36,500,000 in the previous year[30] Assets and Liabilities - Total assets as of December 31, 2024, were valued at HKD 177,589,424, a decrease from HKD 207,770,012 in 2023[9] - Total liabilities decreased to HKD 49,308,731 from HKD 57,511,384 in the previous year, reflecting improved financial stability[9] - The company's net asset value was HKD 128,280,693, down from HKD 150,258,628 in 2023, indicating a decline in overall equity[9] - The company's current assets net value was approximately HKD 125,000,000, down from HKD 141,000,000 in 2023, with cash and cash equivalents at approximately HKD 52,000,000[36] - The debt ratio as of December 31, 2024, was approximately 11.4%, a significant increase from 2.3% in 2023[37] Business Strategy and Market Conditions - The company plans to explore new investment opportunities in areas with growth potential, including AI technology, to diversify its business and ensure sustainable development[11] - The global economic environment remains uncertain due to geopolitical tensions and trade policy changes, which may impact investor confidence and capital inflows into Hong Kong's financial markets[11] - The company will continue to monitor external developments and adjust its business strategies as necessary to adapt to changing market conditions[11] - The management is committed to maintaining operations in existing businesses while seeking potential opportunities for growth and diversification[11] Margin Financing - Margin financing business contributes approximately 97% of the company's revenue for the fiscal year 2023[14] - As of December 31, 2024, the company provided margin loans totaling approximately HKD 89 million, with the top five clients accounting for about 80% of the total margin loans[16] - The annual interest rate for margin loans ranges from 8.5% to 9.125%[16] - The company recognized a margin loan impairment loss of approximately HKD 7.4 million for the fiscal year 2024, compared to HKD 6.3 million in 2023[18] - The expected credit loss provision for margin loans was estimated at approximately HKD 26,041,000, an increase from HKD 23,526,000 in 2023[35] Advertising and Media Business - The digital outdoor media network covers 1,639 selected locations in Hong Kong and Singapore as of December 31, 2024, an increase from 1,589 locations in 2023[19] - The partnership with Hivestack aims to enhance programmatic digital out-of-home (pDOOH) advertising experiences in Singapore, expected to be a major growth driver in the coming years[19] - The company continues to expand its digital outdoor media network by adding new static/LED outdoor locations[20] - The advertising and media business is gradually recovering from the lowest levels experienced during the pandemic[21] Corporate Social Responsibility - The company is committed to corporate social responsibility by engaging in community initiatives and supporting local activities in Singapore and Hong Kong[22] - The company sponsored significant events in 2024, including Singapore's National Day celebrations and charitable initiatives[24][25] Governance and Management - The company emphasizes good corporate governance as a key factor for success and aims to cultivate a culture of ethical and responsible behavior among employees[56] - The board of directors includes several independent non-executive directors, enhancing oversight and governance practices[59] - The company has adopted the GEM Listing Rules as a code of conduct for securities trading by directors, ensuring compliance with regulatory standards[57] - The strategic goal is to create long-term value through a flexible business model while maintaining a prudent approach to sustain value[56] - The company has established various committees, including audit, remuneration, and nomination committees, to enhance governance and oversight[58] - The board is committed to continuous improvement of governance principles and practices to balance the interests of shareholders, customers, and employees[56] - The company’s executive team includes experienced professionals with backgrounds in finance, law, and corporate governance, contributing to effective management[54][55] Board Composition and Meetings - The board consists of nine directors, with three being independent non-executive directors, meeting GEM listing rules requirements[72] - The board held a total of 7 meetings during the fiscal year ending December 31, 2024, including 4 regular board meetings[62] - All executive directors attended 100% of the board meetings, with the exception of one director who attended 4 out of 7 meetings[63] - The chairman and CEO roles are separated, with the chairman focusing on business development strategy and the CEO managing daily operations[66] - The company has established mechanisms to ensure strong independent elements within the board to enhance governance and protect shareholder interests[70] Diversity and Inclusion - The board consists of 8 male members and 1 female member as of December 31, 2024, with a gender ratio of 7:2 following changes on March 25, 2025, meeting GEM listing rules on gender diversity[90] - The company emphasizes equal opportunities in recruitment, training, promotion, and compensation, regardless of gender[91] Environmental, Social, and Governance (ESG) Initiatives - The company has implemented effective management policies and internal control systems regarding environmental, social, and governance (ESG) matters, aligning with ESG reporting guidelines[132] - The company values stakeholder engagement and has established various communication channels to address stakeholder concerns and expectations[130] - The company has identified significant ESG issues, including waste management, greenhouse gas emissions, employee treatment, and product quality, to enhance its operational performance[132] - The company has committed to integrating ESG principles into its risk management system to pursue a sustainable business model[124] - Total greenhouse gas emissions for the year ending December 31, 2024, were approximately 46.1 tons, an increase from 44.0 tons in 2023, with per employee emissions rising to 0.87 tons from 0.85 tons[143] - The company consumed 4,035 liters of gasoline and 50,396 kWh of electricity for the year ending December 31, 2024, compared to 3,583 liters and 48,289 kWh in 2023, representing increases of 12.6% and 4.4% respectively[147][148] - The company has established environmental management policies to govern its operations and minimize greenhouse gas emissions and waste generation[143][146] Employee Management and Safety - As of December 31, 2024, the company employed 52 full-time staff, a decrease from 53 in 2023, with no part-time employees reported[161] - The male workforce percentage decreased from 48.0% in 2023 to 43.4% in 2024, while the female workforce percentage increased from 52.0% to 56.6%[161] - The employee turnover rate for males was 8.0% in 2024, down from 20.8% in 2023, while the turnover rate for females decreased from 15.4% to 7.1%[161] - The company has established a comprehensive occupational health and safety management system, ensuring a safe working environment for office employees[162] - No workplace injuries or lost workdays were recorded during the reporting period, indicating compliance with health and safety regulations[163] Risk Management - The group faces economic risks including global economic downturns, currency fluctuations, inflation, and interest rate volatility, which may adversely affect customer spending sensitivity and gross margins[189] - The group has identified operational risks related to maintaining competitive advantages and adapting to technological advancements[195] Dividend Policy - The company did not recommend any dividend payment for the year ended December 31, 2024, consistent with the previous year[41] - The group has adopted a dividend policy allowing for cash or asset distributions based on board recommendations, subject to sufficient cash reserves and shareholder approval[194] - The board will review the dividend policy periodically and may revise it as necessary to ensure effectiveness[197]
基石金融(08112) - 2024 - 年度财报