Financial Performance - Revenue for the year ended December 31, 2024, was HK$80.66 million, a decrease of 10.5% from HK$89.55 million in 2023[14]. - Adjusted net loss for the year was HK$1.40 million, significantly improved from a loss of HK$22.63 million in 2023[14]. - Adjusted EBITDA for the year was HK$6.60 million, a recovery from an adjusted loss of HK$10.58 million in 2023[14]. - The Group's consolidated net loss was HK$8.85 million, an improvement from a loss of HK$13.24 million in the previous year, mainly due to reduced general and administrative expenses and a gain of HK$6.36 million from the disposal of a subsidiary[28][31]. - The Group recorded total revenue of HK$80.66 million for the Year Under Review, a decrease from HK$89.55 million in the previous year, primarily due to reduced revenue from the asset management business and a net fair value loss of HK$7.45 million on financial assets[27][30]. - The consolidated net loss for the Year Under Review was HK$8.85 million, improved from a loss of HK$13.24 million in the previous year, attributed to lower general and administrative expenses and a gain on disposal of a subsidiary amounting to HK$6.36 million[56]. Asset Management - Asset management income for the year was HK$23.71 million, down 44.6% from HK$42.75 million in 2023[19]. - Total net assets under management (AUM) as of December 31, 2024, were US$130 million, a decrease from US$149 million in 2023[19]. - The decrease in AUM was primarily due to the decline in fair value of the underlying investments held by the funds[19]. - The Group's total assets under management (AUM) as of 31 December 2024 amounted to US$130 million, down from US$149 million as of 31 December 2023[62]. - The Group plans to focus on the development of its asset management business, optimizing its investment portfolio, and has set up an investment fund targeting capital commitments between US$1.5 billion and US$1.9 billion, expected to invest in the healthcare industry[33][36]. Revenue Streams - Revenue from underwriting and placing of securities amounted to HK$18.30 million, compared to nil in 2023[20]. - Revenue from trading of wines and beverages increased to HK$44.46 million, up from HK$36.64 million in the previous year, driven by the recovery of the general economic situation and efforts from the sales and marketing team[26][29]. - The Group participated in three bond issuance transactions during the year, marking a new revenue stream[20]. - The Group participated in three bond issuance transactions during the Year Under Review, generating HK$18.30 million in underwriting and placement income, compared to no income in the previous year[24]. Investments and Trading - The Group has commenced proprietary trading on cryptocurrencies and is exploring asset management opportunities related to crypto-assets to expand its business[34][36]. - The Group allocated US$0.50 million for trading cryptocurrencies, resulting in a gain of HK$1.12 million during the year[111]. - The Group invested HK$5.00 million in the OCI Chiyu Fixed Income Fund, with a fair value of HK$4.86 million as of December 31, 2024, representing 1.6% of total assets[78]. - The Group's investment in SPACs recorded a fair value loss of HK$1.00 million for the year ended December 31, 2023, prior to the net fair value gain in the following year[110]. Market Conditions - Market sentiment improved due to optimism over interest rate cuts and various government policies, although external macro factors such as trade tensions and geopolitical risks remain a concern[32][35]. - The Hang Seng Index reached a two-year high in October 2024, indicating improved market sentiment[138]. Corporate Governance - The Board has adopted the Corporate Governance Code and fully complied with it during the year ended December 31, 2024[168]. - The Board is responsible for the overall strategic development and financial performance of the Group, with daily operations delegated to management[182]. - The Company complies with legal and regulatory requirements as part of its corporate governance practices[186]. - The Board held five meetings during the Year to discuss overall development, operation, and financial performance[193]. Employee Relations - The Group employed 30 employees in Hong Kong and 1 in the PRC as of December 31, 2024, maintaining good relationships with staff[162]. Financial Position - Total assets as of December 31, 2024, were HK$308.48 million, down from HK$323.58 million in 2023[14]. - Cash and cash equivalents increased to HK$128.06 million as of December 31, 2024, compared to HK$104.79 million as of December 31, 2023[128]. - The Group's net current assets were HK$251.53 million as of December 31, 2024, down from HK$263.35 million the previous year, with a current ratio of 8.1 times[129]. - The Group's gearing ratio improved to 2.2% as of December 31, 2024, down from 3.3% the previous year, with total lease liabilities of HK$5.96 million[127].
东建国际(00329) - 2024 - 年度财报