Financial Performance - For the year ended December 31, 2024, the Group recorded a profit attributable to owners of the Company of approximately HK$0.4 million, a significant turnaround from a loss of approximately HK$25.3 million for the year ended December 31, 2023[14]. - The profit turnaround was primarily due to a change from a loss of approximately HK$12.0 million in fair value of financial assets at fair value through profit or loss in 2023 to a gain of approximately HK$17.4 million in 2024[14]. - Administrative and other operating expenses increased by approximately HK$4.4 million for the year ended December 31, 2024[14]. - The Group recorded a profit attributable to owners of approximately HK$0.4 million for the year ended 31 December 2024, a turnaround from a loss of approximately HK$25.3 million for the year ended 31 December 2023[27]. - The profit turnaround was primarily due to a change in fair value of financial assets, with a gain of approximately HK$17.4 million in 2024 compared to a loss of approximately HK$12.0 million in 2023[27]. - Administrative and other operating expenses increased by approximately HK$4.4 million for the year ended 31 December 2024[27]. Investment Strategy - The investment approach will focus on capital preservation and prudent risk management, with an emphasis on sectors with strong fundamentals[20]. - The Group's investment strategy includes a focus on both listed and unlisted companies, with no restriction on the proportion of assets invested in any specific sector[29]. - The Company will not take legal or effective management control of underlying investments, and will not own more than 30% of the voting rights in any one company[35]. - The Group's principal activity is to act as an investment holding company, primarily investing in listed and unlisted equity and debt securities, unlisted investment funds, and cryptocurrencies[130]. Market Outlook - The Company remains optimistic about the Chinese market due to low valuations, government support, technological advancements, and increased shareholder returns[17]. - The Chinese government continues to implement policies to bolster the economy, enhancing investor confidence[19]. - The Hang Seng Index and CSI 300 delivered positive returns in 2024, marking a turning point after three years of market downturns[15]. Cryptocurrency and Technology - Cryptocurrency is viewed as a potential cornerstone of the Company's strategy, offering a hedge and growth opportunity during economic downturns[20]. - Over the next three years, Alibaba plans to invest more in AI infrastructure than it has in the past decade, addressing the massive demand for AI and cloud computing infrastructure[41]. - Alibaba will significantly increase R&D investment in AI foundation models to maintain technological leadership and drive the development of AI-native applications[42]. - The company aims to enhance user value across its e-commerce and internet platform businesses by deeply integrating AI technology, capturing new growth opportunities[43]. Financial Position - As of December 31, 2024, the Group's cash and cash equivalents increased to approximately HK$5,999,000 from HK$1,595,000 in 2023[58]. - The Group's net current assets rose to approximately HK$120,490,000 as of December 31, 2024, compared to HK$64,655,000 in 2023[58]. - The gearing ratio improved to 7.83% in 2024 from 14.24% in 2023, indicating a reduction in leverage[58]. - The current ratio increased to 9.95 in 2024, up from 6.46 in 2023, reflecting enhanced liquidity[58]. - The Group's net asset value increased to approximately HK$127,659,000 as of December 31, 2024, compared to HK$71,883,000 in 2023, primarily due to the completion of the Rights Issue on May 30, 2024, which generated net proceeds of approximately HK$55,377,000[100]. - The net asset value per share rose to approximately HK$0.12 in 2024 from HK$0.10 in 2023, calculated based on 1,050,500,887 shares outstanding as of December 31, 2024, compared to 700,333,925 shares in 2023[101]. Share Capital and Dividends - The Company had 1,050,500,887 shares issued as of December 31, 2024, an increase from 700,333,925 shares in 2023[65]. - The Company conducted a rights issue on April 9, 2024, offering one rights share for every two existing shares at a subscription price of HK$0.162, aiming to raise gross proceeds of HK$57 million by issuing up to 350,166,962 rights shares[66]. - The net proceeds from the rights issue were approximately HK$55 million after expenses, with HK$15 million allocated for general working capital and approximately HK$40 million for future investments[66]. - For the year ended December 31, 2024, the Directors do not recommend the payment of any dividend, consistent with the previous year[132]. - The company did not recommend any dividend distribution for the year ended December 31, 2024, consistent with the previous year[138]. Operational Highlights - The Group's total staff costs for the year ended December 31, 2024, amounted to approximately HK$11,692,000, an increase from approximately HK$7,701,000 for the year ended December 31, 2023[85]. - The Group has not experienced any incidents of non-compliance with relevant laws and regulations that significantly impact its operations during the year[94]. - The Group emphasizes maintaining good relationships with employees and stakeholders to achieve its immediate and long-term goals[96]. Acquisitions and Collaborations - Baijin Life completed the acquisition of Tonnett Julis Holdings Limited, which provides scientific and pharmaceutical research services and skincare solutions[49]. - The acquisition allows Baijin Life to expand its business both vertically and horizontally, enhancing its product range from pearls and jewelry to skincare[49]. - Baijin Life's cooperation with a local high-end jewelry brand contributed 21.4% to its total revenue by September 30, 2024, indicating a positive impact on financial performance[48]. Risk Management - The Group continuously monitors market dynamics and adopts a conservative investment approach to mitigate business risk[88]. - Regular reviews of forward-looking indicators are conducted to identify economic conditions and mitigate economic risk[90]. - Liquidity risk is managed by maintaining appropriate liquidity to cover commitments and regularly monitoring the financial position[90]. - The Group employs financial instruments such as forward exchange contracts to hedge against exchange risk[90]. - Competitive reward and benefit packages are provided to attract and retain key personnel, addressing people risk[90]. Corporate Governance - The Company has complied with the public float requirement of the Listing Rules throughout the year ended December 31, 2024[185]. - All three independent non-executive Directors have confirmed their independence in accordance with the Listing Rules[180]. - The Board has reviewed the independence of all independent non-executive Directors and concluded that they are independent[181].
胡桃资本(00905) - 2024 - 年度财报