Financial Performance - The group's revenue decreased by approximately 6.5% to about HKD 22.6 million for the year ending December 31, 2024, compared to HKD 24.1 million in the previous year[9]. - Profit for the year fell by approximately 24.4% to about HKD 6.7 million, down from HKD 8.9 million in the previous year, primarily due to reduced revenue and a decrease in one-time impairment reversal of HKD 2.2 million[9]. - Basic earnings per share for the year were approximately HKD 0.81, compared to HKD 1.11 in the previous year[10]. - The group's revenue decreased by approximately 6.5% to HKD 22.6 million from approximately HKD 24.1 million in the previous year, primarily due to a reduction in placement and advisory fee income[21]. - The group's net profit after tax fell by 24.4% to HKD 6.7 million, despite a threefold increase in revenue in the previous year and achieving a turnaround in business performance[20]. - The group's profit for the year was approximately HKD 6.7 million, compared to HKD 8.9 million in the previous year, resulting in a profit margin of 29.8% compared to 36.9% in the previous year[30]. - The actual tax expense for the year was approximately HKD 1.9 million, down from HKD 2.5 million in the previous year, with an effective tax rate of 22.2%[29]. - Total revenue for the year ended December 31, 2024, was HKD 22,577,000, a decrease of 6.5% from HKD 24,143,000 in 2023[156]. - Net profit attributable to owners for the year was HKD 6,735,000, down 24.5% from HKD 8,909,000 in 2023[156]. - Basic and diluted earnings per share decreased to HKD 0.81 from HKD 1.11, representing a decline of 27.0%[156]. Dividend Policy - The board does not recommend the payment of a final dividend for the year, maintaining the previous year's policy of no final dividend[11]. - The company has adopted a dividend policy that allows for the declaration and distribution of dividends at the board's discretion, considering various factors including financial performance and cash flow[94]. - The board of directors does not recommend the payment of a final dividend for the year, consistent with the previous year[100]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced composition[46]. - The company has established a board independence assessment mechanism to enhance board efficiency and protect shareholder interests[51]. - The company has complied with the corporate governance code and has received annual confirmations of independence from all independent non-executive directors[50]. - The company has established four committees: audit, remuneration, nomination, and risk management, each with defined written terms of reference[59]. - The audit committee, consisting of three independent non-executive directors, held two meetings this year to assess the company's auditor independence and review financial performance[61]. - The remuneration committee is responsible for recommending compensation for individual executive directors and senior management, ensuring transparency in the remuneration process[62]. - The nomination committee evaluates the board's structure and independence of non-executive directors, having held one meeting this year to review diversity policies[64]. - The company has implemented appropriate insurance for directors and senior management to protect against legal actions arising from company business[57]. - The board is responsible for key decisions regarding policy, strategy, budgeting, and risk management, ensuring objective decision-making in the company's best interest[56]. - The company has established a whistleblowing policy for employees and business partners to report concerns about misconduct confidentially and anonymously[84]. Operational Developments - The company continues to reinvest profits into technology development, successfully upgrading mobile applications and trading systems, and launching new products[11]. - The company successfully upgraded its mobile application and trading system, launched new products, and streamlined business processes, enhancing automation and electronic trading compared to traditional paper-based operations[20]. - The company plans to integrate resources and simplify operations through the "Well Link" platform, aiming to achieve competitive advantages and economies of scale[12]. - The group plans to integrate resources and further streamline operations in the coming year, leveraging the "Bridge" platform to enhance competitive advantages and economies of scale[31]. Financial Position - The total assets of the group increased from HKD 71.7 million to HKD 89.0 million, while net assets rose from HKD 7.7 million to HKD 52.6 million[19]. - The group generated approximately HKD 18.9 million from brokerage services, related advisory services, and margin financing, a decrease of about 15.6% or approximately HKD 3.5 million compared to the previous year[22]. - The group raised a total of HKD 40.0 million through a new share issuance to repay issued notes, along with an additional interest-free loan of HKD 30.0 million from the controlling shareholder to support the group's securities business[19]. - As of December 31, 2024, the group's receivables and interest balance, after deducting expected credit losses of approximately HKD 0.3 million, amounted to approximately HKD 17.1 million, compared to HKD 13.8 million in 2023[24]. - The interest income from receivables for the current year was approximately HKD 3.6 million, an increase from HKD 1.7 million in the previous year[24]. - The group employed a total of 14 employees as of December 31, 2024, compared to 12 in 2023, with total employee costs for the year amounting to approximately HKD 4.9 million, down from HKD 6.2 million in the previous year[27]. - Other operating and administrative expenses for the year were approximately HKD 8.7 million, an increase of HKD 0.7 million or 9.6% from the previous year[28]. - The company reported a net asset value of HKD 52,588,000, significantly up from HKD 7,653,000 in 2023[157]. - Cash and cash equivalents increased to HKD 13,898,000 from HKD 12,369,000, reflecting a growth of 12.4%[157]. - The company issued new shares, raising HKD 38,200,000, which contributed to the increase in total equity[158]. Risk Management - The group has adopted a comprehensive credit policy to manage its lending business, ensuring compliance with applicable laws and regulations[26]. - The group anticipates no significant credit risk due to all bank balances and deposits being held in recognized banks and financial institutions in Hong Kong and Macau[32]. - The group is exposed to liquidity risk due to timing differences in settlements with clearing houses and clients, which is closely monitored by the financial team[34]. - The company does not anticipate significant foreign currency risk due to its transactions being primarily in Hong Kong dollars and US dollars, and currently has no foreign currency hedging policy in place[35]. - The company has no significant contingent liabilities as of December 31, 2024[36]. - The company has no significant capital commitments that are contracted but not provided for as of December 31, 2024[37]. - The company has no assets pledged for borrowing as of December 31, 2024[39]. - The company has implemented a risk management policy to identify, assess, and mitigate operational risks[82]. Shareholder Information - Major shareholders include Lihqiao Financial Technology Holdings Limited, holding 523,672,000 shares (54.55%), and Mr. Xu Chujia and Ms. Zhang Meijuan, holding a combined 683,672,000 shares (71.22%) of the company[123]. - The total number of issued shares of the company is 960,000,000 shares as of the report date[126]. - The company maintains sufficient public float as per GEM Listing Rules[127]. - The company will hold its annual general meeting on June 13, 2025, with a suspension of share transfer registration from June 10 to June 13, 2025[101]. - The company has established a shareholder communication policy to ensure proper handling of shareholder opinions and concerns, with satisfactory results from the recent review[93]. Audit and Compliance - The total fees paid to the external auditor, Baker Tilly, for audit and non-audit services amounted to HKD 485,000[87]. - The company's audit was conducted in accordance with Hong Kong auditing standards, ensuring independence and compliance with ethical responsibilities[137]. - The independent auditor aims to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[151]. - The audit committee is responsible for overseeing the financial reporting process of the company[150]. - The independent auditor's report does not cover other information outside the consolidated financial statements[148]. Asset Management - The company did not recognize any impairment losses on property, plant, and equipment, right-of-use assets, or intangible assets in 2024, compared to HKD (2,907,000) in 2023[160]. - The company recognized a reversal of impairment losses amounting to HKD 743,000, compared to HKD 2,985,000 in 2023[156]. - The company experienced a significant increase in depreciation of right-of-use assets, rising to HKD 1,647,000 in 2024 from HKD 56,000 in 2023[160]. - The company faced an increase in accounts receivable from daily operations, which rose to HKD (16,529,000) in 2024 from HKD (14,023,000) in 2023[160].
骏溢环球金融(08350) - 2024 - 年度财报