Financial Performance - Total revenue for the year was approximately HKD 81,900,000, a decrease of about HKD 74,000,000 or 47.3% compared to the previous year[8] - The group recorded a consolidated loss of approximately HKD 212,700,000, compared to a loss of HKD 176,500,000 in the previous year[8] - Basic and diluted loss per share was HKD 0.2091, compared to HKD 0.1482 in the previous year[9] - Segment revenue decreased by 18.9% to approximately HKD 53,100,000 from HKD 65,500,000 in the previous year[12] - Other comprehensive expenses for the year were approximately HKD 97,500,000, compared to other comprehensive income of HKD 13,400,000 in the previous year[9] - The group's total revenue for the year was approximately HKD 81,900,000, a decrease of about HKD 31,500,000 or 27.8% compared to the previous year[20] - Asset management service revenue fell to approximately HKD 1,800,000 from HKD 3,700,000 in the previous year, reflecting a significant decline due to poor stock market performance[13] - Margin loan interest income decreased to approximately HKD 45,500,000 from HKD 53,200,000, primarily due to a drop in margin loan rates from 8% to 2% in the second half of the year[13] - The credit and lending services segment revenue plummeted from approximately HKD 73,000,000 to about HKD 3,200,000, largely due to a one-time debt recovery income of HKD 42,000,000 in the previous year[15] - The property investment and leasing segment reported revenue of approximately HKD 10,500,000, down from HKD 12,000,000, with a significant loss of HKD 103,900,000 attributed to a decline in the local real estate market[16] - Tactical and strategic investments recorded a segment loss of approximately HKD 86,800,000, an improvement from a loss of HKD 232,200,000 in the previous year[17] - The group's total comprehensive expenses for the year amounted to approximately HKD 310.2 million, up from approximately HKD 163.1 million in 2023[21] Future Outlook - The group anticipates a challenging fiscal year 2025 due to geopolitical tensions and high interest rates impacting the business environment[5] - The group aims to strengthen its financial services business and adopt a prudent strategy for potential investments and opportunities[5] - The group expects to receive formal written approval from the Securities and Futures Commission for its license application in 2025[12] - The group anticipates a moderate growth trajectory for the Hong Kong economy, supported by asset investment activities, despite ongoing global geopolitical tensions[18] - The group plans to maintain a cautious approach to cost management and resource allocation to sustain profitability while exploring new growth opportunities[19] - The group will closely monitor economic developments and adjust strategies accordingly to strengthen market position and drive sustainable growth[19] Corporate Governance - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules throughout the year[36] - The board consists of nine members, including four executive directors and four independent non-executive directors, ensuring a balanced governance structure[46] - The company has confirmed compliance with the standard code for securities trading by directors and relevant employees for the fiscal year ending December 31, 2024[43] - The board is led by Dr. Zhuang Youheng as the chairman, with responsibilities clearly divided from the CEO role to ensure governance independence[47] - The company has received written confirmations from all independent non-executive directors regarding their independence from the group[49] - The board has adopted a diversity policy to ensure a balanced selection of candidates based on various perspectives, including gender, age, and professional experience[58] - The Nomination Committee reviewed the board's structure and diversity on March 26, 2025, and found it appropriate and in line with measurable diversity goals[51] - The board has established clear guidelines for delegating authority to management while regularly reviewing these arrangements[54] - The company has a structured nomination process to identify suitable candidates for board positions, considering the benefits they bring[60] - The board held 13 meetings in total, with attendance rates for executive directors ranging from 77% to 100%[72] - The independent non-executive directors maintained high attendance rates, with some achieving 100% attendance in board meetings[72] - The company has not established a corporate governance committee but fulfills governance functions as outlined in the corporate governance code[73] Employee and Social Responsibility - The company is committed to sustainable development and environmental protection, implementing eco-friendly management practices and resource optimization[38] - The company has established a discretionary share option plan to enhance employee performance and loyalty[39] - The company actively participates in community activities to strengthen its environmental, social, and governance management[38] - The company has maintained a zero record of employee injuries or fatalities over the past three years[130] - The company provides various employee benefits, including medical insurance covering outpatient, hospitalization, and annual health check-ups[128] - The company encourages work-life balance through various sports and recreational activities for employees[128] - The company has implemented measures to review recruitment practices to prevent child and forced labor[11] - The company has complied with all relevant laws and regulations regarding employment and labor standards during the reporting period[129] Environmental, Social, and Governance (ESG) Initiatives - The group is committed to sustainable development and has adopted an Environmental, Social, and Governance (ESG) policy to guide its operations[111] - The ESG report covers the group's core business in Hong Kong, including licensed financial services and property investment[113] - The company aims to reduce greenhouse gas emissions by 45% from the 2021 baseline by 2030, with current emissions at 50.6 tons, averaging 1.53 tons per employee[119] - The company plans to decrease non-hazardous waste by 50% from the 2021 baseline by 2030[120] - The total electricity consumption during the reporting period was 70,360.0 kWh, averaging 2,132.1 kWh per employee, with a goal to reduce energy consumption per employee by 20% by 2030[122] - The company has not generated any hazardous waste and aims to manage non-hazardous waste responsibly[119] - The company has implemented measures to encourage employees to reduce energy and water consumption, including the use of energy-efficient equipment[121] - The company has set a target to reduce water consumption by 10% from the 2021 baseline by 2030, with zero cubic meters consumed during the reporting period[122] - The company has established a governance structure to manage environmental, social, and governance risks effectively[117] - The company conducts annual materiality assessments to identify significant environmental and social issues impacting its operations[118] Financial Position and Shareholder Matters - As of December 31, 2024, the group's net asset value was approximately HKD 1,596.9 million, down from approximately HKD 1,907.1 million in 2023[22] - The group's liquidity remains strong, with a current ratio of 3.9 as of December 31, 2024, unchanged from 2023[24] - The group's debt ratio increased to 14.9% as of December 31, 2024, compared to 13.0% in 2023, primarily due to a decrease in shareholder equity[27] - The company has adopted a dividend policy aimed at maximizing shareholder interests while maintaining a robust balance sheet for future sustainable development since November 30, 2018[104] - The company will regularly review its dividend policy to ensure compliance with applicable laws, rules, and regulations[105] - The board of directors did not recommend the payment of a final dividend for the current year, consistent with the previous year[149] - The company has established a shareholder communication policy to ensure timely and fair access to relevant information[98] - The company’s latest organizational documents are available on its website and the Hong Kong Stock Exchange[102] - The company has confirmed that there are no significant uncertainties regarding its ability to continue as a going concern as of December 31, 2024[78] Audit and Compliance - The financial statements for the year have been audited by a certified public accountant firm, which will be proposed for reappointment at the upcoming annual general meeting[198] - The Audit Committee held two meetings in 2024 to review the financial performance and internal controls of the group[107] - The committee discussed the effectiveness of the group's risk management and internal control systems, focusing on financial, operational, and compliance monitoring[109] - The company has established a robust risk management and internal control system, which is reviewed annually by the board[81] - The company has engaged an independent external consultant to evaluate its internal control system and provide recommendations for improvements[81] - The board has confirmed that there are no significant deficiencies or material weaknesses in the internal control measures[82] - The company has maintained strict adherence to relevant regulations, publishing its interim report for 2024 and annual report for 2023 on time[78]
梧桐国际(00613) - 2024 - 年度财报