Financial Performance - For the year ended December 31, 2024, the Group's revenue was approximately HK$38.9 million, a decrease of approximately 41.4% compared to HK$66.3 million in 2023[8]. - Gross profit for the year was approximately HK$11.2 million, representing a decrease of approximately 26.0% from HK$15.2 million in 2023[9]. - The Group reported a net loss of approximately HK$45.5 million, primarily due to a provision for expected credit loss of approximately HK$27.0 million[9]. - Revenue from the trading of used computer-related components, clothes, and beauty products was HK$26.9 million, with a net loss of HK$5.8 million for that segment[25]. - The decline in revenue was attributed to unfavorable macroeconomic conditions and ongoing geopolitical tensions affecting consumer purchasing power[21]. Loan and Credit Management - Interest income from the money lending business was approximately HK$11.8 million for the year[10]. - The total outstanding loan receivables amounted to approximately HK$91.7 million, with an interest rate of 8-10%[31]. - The largest borrower and the top five borrowers accounted for approximately HK$9.6 million and HK$37.8 million, representing about 10.5% and 41.2% of the total loan receivables, respectively[38]. - The loan portfolio consists of 40 borrowers, including 3 corporate borrowers and 37 personal borrowers[38]. - The expected credit loss (ECL) for loan receivables resulted in an impairment loss of approximately HK$34.8 million due to certain receivables being transferred from stage 2 to stage 3[46]. - The company has developed a credit policy and procedures manual for its money lending business, which includes credit risk assessment prior to loan approval[48]. Capital and Shareholder Information - The authorized share capital of the company as of December 31, 2024, was HK$600 million, divided into 100 billion shares of HK$0.006 each[49]. - The issued share capital as of December 31, 2024, was HK$9.23 million, comprising 1.54 billion shares of HK$0.006 each, with no changes during the year[50]. - The Board does not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with 2023[88]. - There were no material acquisitions or disposals of subsidiaries and associated companies during the year ended December 31, 2024[85]. Financial Assets and Investments - As of December 31, 2024, the total market value of financial assets at fair value through profit or loss (FVTPL) was approximately HK$80.9 million, an increase from HK$78.3 million in 2023[67]. - The Group recognized an unrealized gain on financial assets at FVTPL of approximately HK$0.5 million for the year ended December 31, 2024, compared to an unrealized loss of approximately HK$6.6 million in 2023[68]. - The Group incurred realized losses on financial assets at FVTPL of approximately HK$8.9 million for the year ended December 31, 2024, compared to realized losses of approximately HK$0.2 million in 2023[68]. - The total amount utilized from the net proceeds as of December 31, 2024, was HK$20.3 million[61]. - Approximately HK$18.3 million of the net proceeds remained unutilized as of the last reporting period[63]. Corporate Governance - The company has a commitment to high standards of corporate governance practices and procedures, emphasizing quality board leadership and sound internal controls[109]. - The company applied the principles set out in the Corporate Governance Code during the year ended December 31, 2024, ensuring compliance with the Listing Rules[110]. - The Board is responsible for promoting the company's success by providing leadership and supervising the control of the business[111]. - The Company has maintained a high level of corporate governance practices and procedures, adhering to the Listing Rules and Corporate Governance Code[113]. - The Company has conducted a review of its corporate governance mechanisms for the year ended December 31, 2024, and found them effective in providing independent views[121]. Risk Management - The Board is responsible for maintaining effective risk management and internal control systems to safeguard shareholders' interests and the Company's assets[173][176]. - An external consultant reviewed the internal control system and risk management during the year ended December 31, 2024, with no significant areas of concern identified[181]. - The risk management framework is designed to manage risks in line with the Group's risk appetite, providing reasonable assurance against material misstatement or loss[179][182]. - The Group's risk management policy outlines the process for identifying, evaluating, and managing principal risks affecting the business[175]. - The Group's risk management and internal control system is designed to manage risks rather than eliminate them, ensuring reasonable assurance against material misstatements[183]. Employee and Board Composition - The Group had 12 employees as of December 31, 2024, compared to 11 employees in 2023, with a gender ratio of approximately 83% male to 17% female[86]. - The current Board consists of five members, including one female Director, promoting diversity in gender, skills, and experience[162]. - The Nomination Committee assesses the independence of all Independent Non-Executive Directors annually to ensure they can exercise independent judgment[119]. - Continuous professional development is mandated for all Directors to keep their knowledge and skills updated[124]. - The Company actively seeks to increase the proportion of female Board members and maintains a list of qualified female candidates[162].
新确科技(01063) - 2024 - 年度财报