Financial Performance - The total assets of Southwest Securities International amounted to approximately HKD 97.9 million, with net liabilities of about HKD 48.3 million[13]. - The company recorded a net loss of approximately HKD 11.2 million for the year, which is a reduction of about HKD 4.7 million or 29.6% compared to the previous year[21]. - The brokerage and margin financing business recorded revenue of approximately HKD 0.1 million for the year, consistent with the previous year[22]. - The corporate finance segment did not generate any revenue this year, compared to HKD 5.5 million in 2023[23]. - Asset management revenue was approximately HKD 0.9 million this year, while there was no revenue recorded in the previous year[25]. - The trading business generated net revenue of approximately HKD 0.1 million, a significant decrease from HKD 25.6 million in 2023[27]. - Other income for the year was approximately HKD 10.2 million, down from HKD 24.9 million in 2023, primarily due to a decline in bank interest income[29]. - Employee costs for the year were approximately HKD 19.7 million, down from HKD 25.6 million in 2023, reflecting a strategic adjustment in workforce allocation[31]. - Financial costs decreased to approximately HKD 10.3 million, a reduction of HKD 21.5 million or 67.6% compared to HKD 31.8 million in 2023[33]. - The group reported a consolidated loss of approximately HKD 11,216,000 for the year ending December 31, 2024[188]. Business Strategy and Development - The company aims to enhance its comprehensive service capabilities by leveraging opportunities in interconnectivity expansion, green finance, and digital transformation[19]. - The company plans to focus on core business advantages and integrate into the national development strategy to share opportunities with clients and shareholders[15]. - The company will continue to support high-quality development as a key task in the upcoming years[15]. - The company is actively exploring new business opportunities and aims to expand its client base and business prospects in financial advisory, asset management, and brokerage services[35]. Compliance and Governance - The company will strengthen compliance culture and implement ESG principles to contribute to the prosperity of Hong Kong's financial industry[19]. - The company has set effective management policies and internal control systems regarding environmental, social, and governance issues[55]. - The company emphasizes high standards of anti-corruption practices to maintain operational transparency and integrity[58]. - The group has maintained a commitment to high standards of transparency and accountability, ensuring no significant violations of bribery, extortion, fraud, or money laundering laws were found this year[60]. - The board of directors is committed to maintaining high standards of corporate governance to protect and enhance shareholder value[145]. - The company has adopted a standard code for securities trading by directors, ensuring compliance and ethical conduct among its leadership[147]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to monitor specific aspects of the company’s affairs[164]. Financial Position and Liquidity - As of December 31, 2024, the total cash and bank balance was approximately HKD 91.8 million, down from HKD 604.0 million in 2023[36]. - The current ratio was approximately 0.7 times, compared to 0.9 times in 2023, indicating a decline in liquidity[36]. - The group had a net current liability of approximately HKD 48,920,000 and a capital deficit of approximately HKD 48,293,000[188]. - The group has loans totaling approximately HKD 138,532,000 due on June 30, 2025, including HKD 126,771,000 from the controlling shareholder's term loan and HKD 11,761,000 from the revolving loan[188]. - The board has considered the group's cash flow situation and potential financial support from the controlling shareholder, Xizheng International Investment, to ensure operational continuity until March 31, 2026[192]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to expanding its disclosure scope regarding environmental, social, and governance performance[50]. - The environmental, social, and governance report covers the performance for the year ending December 31, 2024[49]. - The company has implemented energy-saving measures, including using energy-efficient appliances and regular maintenance of electrical systems[111]. - The company has established a green procurement policy, prioritizing suppliers that minimize environmental impact[97]. - The company has developed a climate policy to manage risks associated with climate change, integrating it into its risk management processes[104]. - The company has not reported any significant incidents of non-compliance with environmental laws and regulations in 2024[101]. Employee and Workforce Management - As of December 31, 2024, the company had a total of 30 employees, with a gender distribution of 53% male and 47% female[75]. - Employee turnover rate for the year was 23.1%, while the hiring rate was 20%[79]. - The company maintains a 100% full-time employment structure, with no part-time or temporary workers[84]. - The company has established a competitive compensation system based on fairness and market levels, regularly reviewing salaries in line with market conditions and inflation[88]. - Employee training on anti-money laundering was conducted, with 28 participants attending a seminar in October 2024, and all new employees required to complete online tests within their first month[60]. Risk Management - The group has established a robust internal control system to manage compliance and legal risks, with a three-line defense mechanism in place for risk management[194]. - Key risks identified include market risk, credit risk, liquidity risk, and operational risk, with market risk primarily affecting trading and asset management businesses[200]. - The group employs risk exposure metrics, concentration levels, and loss limits to mitigate excessive investment risks[200]. - Credit risk exposure is mainly associated with margin financing, fixed income financial assets, and securities lending arrangements[200]. - The group has enhanced monitoring and management of liquidity risk to ensure normal payment and settlement operations[200].
西证国际证券(00812) - 2024 - 年度财报