裕承科金(00279) - 2025 - 年度业绩

Company Information and Report Statement Report Statement and Company Profile This is the annual results announcement of Arta TechFin Corporation Limited for the year ended March 31, 2025, issued by Hong Kong Exchanges and Clearing Limited - This is the audited consolidated results announcement of Arta TechFin Corporation Limited (Stock Code: 279) for the year ended March 31, 2025[2][3] Consolidated Financial Statements Consolidated Statement of Profit or Loss For the year ended March 31, 2025, the company's revenue grew significantly, but a notable increase in operating expenses resulted in a narrowed loss for the year Key Data from Consolidated Statement of Profit or Loss (HK$'000) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 63,846 | 23,329 | 173.6% Increase | | Other income and net gains | 6,262 | 4,513 | 38.7% Increase | | Total revenue and other income and gains | 70,108 | 27,842 | 151.8% Increase | | Operating expenses | (105,611) | (78,417) | 34.7% Increase | | EBITDA | (35,503) | (50,575) | 29.7% Loss Narrowed | | Operating loss | (41,521) | (55,025) | 24.6% Loss Narrowed | | Loss before tax | (47,485) | (62,941) | 24.6% Loss Narrowed | | Loss for the year | (47,485) | (62,921) | 24.5% Loss Narrowed | | Loss for the year attributable to shareholders | (51,826) | (63,838) | 18.8% Loss Narrowed | Consolidated Statement of Comprehensive Income For the year ended March 31, 2025, the company's total comprehensive loss narrowed compared to the previous year, mainly due to a smaller loss for the year and no significant other comprehensive loss Key Data from Consolidated Statement of Comprehensive Income (HK$'000) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Loss for the year | (47,485) | (62,921) | 24.5% Loss Narrowed | | Other comprehensive loss | – | (3,667) | 100% Loss Reduction | | Total comprehensive loss for the year | (47,485) | (66,588) | 28.7% Loss Narrowed | | Comprehensive loss attributable to shareholders | (51,826) | (67,505) | 23.2% Loss Narrowed | Consolidated Statement of Financial Position As of March 31, 2025, the company's total assets, net current assets, and net assets all decreased, while current liabilities increased substantially, causing a significant drop in the current ratio Key Data from Consolidated Statement of Financial Position (HK$'000) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 34,816 | 29,071 | 19.8% Increase | | Total current assets | 66,881 | 101,805 | 34.3% Decrease | | Total current liabilities | 66,199 | 13,641 | 385.3% Increase | | Net current assets | 682 | 88,164 | 99.2% Decrease | | Net assets | 29,444 | 76,829 | 61.7% Decrease | | Total equity | 29,444 | 76,829 | 61.7% Decrease | Notes to the Financial Statements Basis of Preparation The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, Hong Kong GAAP, and the Companies Ordinance, primarily using the historical cost basis - The financial statements are presented in Hong Kong dollars, and all values are rounded to the nearest thousand[10] Changes in Accounting Policies and Disclosures The Group has applied certain amendments to HKFRS for the first time, but these had no material impact on the financial performance and position for the current or prior years - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[11] Operating Segment Information The Group is organized into five reportable operating segments: Global Markets, Asset Management, Insurance Brokerage, Investment, and Wealth Management and Advisory Services - The Chief Operating Decision-Maker (the Company's directors) is responsible for allocating resources and assessing the performance of the operating segments[14] - Segment results are evaluated based on adjusted profit/(loss) before tax, excluding certain income and expense items[14] Segment Description The Group's operating segments include Global Markets, Asset Management, Insurance Brokerage, Investment, and Wealth Management and Advisory Services - The Global Markets business covers securities and futures brokerage, margin financing, placing, underwriting, and M&A advisory services[13] - The Asset Management business provides investment advisory, external asset management, portfolio management, fund incubation, and trade execution[13] - The Investment business and the Wealth Management and Advisory Services business are newly established operating segments during the year[12][13] Segment Revenue and Results (2025) In fiscal year 2025, the Wealth Management & Advisory and Insurance Brokerage businesses contributed most of the external revenue, while two segments recorded losses FY2025 Segment Revenue and Results (HK$'000) | Segment | Revenue from External Customers | Segment Results | | :--- | :--- | :--- | | Global Markets | 3,328 | (8,639) | | Asset Management | 9,938 | 5,204 | | Insurance Brokerage | 18,777 | 661 | | Investment | 3,834 | 4,430 | | Wealth Management and Advisory Services | 27,969 | (1,619) | | Total | 63,846 | 37 | Segment Revenue and Results (2024) In fiscal year 2024, the Asset Management and Global Markets businesses were the main sources of revenue, with Asset Management contributing the majority of segment results FY2024 Segment Revenue and Results (HK$'000) | Segment | Revenue from External Customers | Segment Results | | :--- | :--- | :--- | | Global Markets | 9,967 | (1,055) | | Asset Management | 12,265 | 6,137 | | Insurance Brokerage | 1,097 | 698 | | Total | 23,329 | 5,780 | Geographical Information The Group's revenue from external customers and non-current assets (excluding financial instruments) are primarily located in Hong Kong - In 2025 and 2024, all revenue from external customers was derived from Hong Kong[19] - In 2025 and 2024, all non-current assets (excluding financial instruments) were located in Hong Kong[20] Information about Major Customers In fiscal year 2025, Customers A, B, and C became major customers, while Customers D and E were the major customers in fiscal year 2024 Revenue from Major Customers (HK$'000) | Customer | 2025 | 2024 | | :--- | :--- | :--- | | Customer A | 15,038 | – | | Customer B | 8,338 | – | | Customer C | 8,044 | – | | Customer D | – | 10,140 | | Customer E | – | 3,450 | - In fiscal year 2025, revenue from Customer A was entirely from the Wealth Management and Advisory Services business, while revenue from Customers B and C was entirely from the Insurance Brokerage business[21] Revenue, Other Income and Net Gains In fiscal year 2025, total revenue increased significantly, driven by new business segments, while other income and net gains also rose Analysis of Revenue, Other Income and Net Gains (HK$'000) | Revenue Source | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Placing and underwriting income | 1,301 | 9,630 | 86.5% Decrease | | Commission and brokerage income from securities and futures dealing | 1,560 | 305 | 411.5% Increase | | Insurance brokerage income | 18,777 | 1,097 | 1611.7% Increase | | Asset management and advisory fee income | 10,403 | 12,265 | 15.2% Decrease | | Wealth management and advisory services income | 27,969 | – | N/A | | Interest income from investments | 3,834 | – | N/A | | Total Revenue | 63,846 | 23,329 | 173.7% Increase | | Total other income and net gains | 6,262 | 4,513 | 38.7% Increase | - Other income primarily includes a waiver of information technology and maintenance expenses of HK$4,352,000 from a service provider[23] Components of Loss Before Tax In fiscal year 2025, key expense items such as employee benefits, depreciation, and amortization changed, with a new impairment loss on intangible assets recorded Key Components of Loss Before Tax (HK$'000) | Item | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Employee benefit expenses | 26,498 | 30,052 | 11.8% Decrease | | Auditor's remuneration | 1,514 | 1,692 | 10.5% Decrease | | Depreciation – property, plant and equipment | 2,329 | 2,100 | 10.9% Increase | | Depreciation – right-of-use assets | 3,012 | 2,150 | 40.1% Increase | | Amortisation | 677 | 200 | 238.5% Increase | | Provision for impairment loss on loans receivable | – | 1,338 | 100% Decrease | | Net provision for impairment loss on trade receivables | 229 | 322 | 28.9% Decrease | | Impairment loss on intangible assets | 1,397 | – | N/A | Finance Costs Total finance costs for fiscal year 2025 amounted to HK$5,964,000, a decrease from 2024, primarily consisting of interest on borrowings and lease liabilities Finance Costs (HK$'000) | Item | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Interest on borrowings | 5,244 | 7,758 | 32.4% Decrease | | Interest on lease liabilities | 720 | 158 | 355.7% Increase | | Total | 5,964 | 7,916 | 24.7% Decrease | - Interest on borrowings includes imputed interest on convertible bonds of HK$5,244,000 (2024: HK$4,206,000)[24] Income Tax Credit The Group had no income tax credit in fiscal year 2025, compared to a credit of HK$20,000 in fiscal year 2024 Income Tax Credit (HK$'000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Overprovision in prior years – Hong Kong | – | 1 | | Deferred tax – reversal of temporary differences | – | 19 | | Total income tax credit for the year | – | 20 | Loss Per Share Attributable to Shareholders For the year ended March 31, 2025, both basic and diluted loss per share were HK$0.3 cents, remaining unchanged from the previous year despite a narrower loss attributable to shareholders - Loss for the year attributable to shareholders was HK$51,826,000 (2024: HK$63,838,000)[26][28] - The weighted average number of ordinary shares in issue was 19,842,667,311 (2024: 19,143,179,880)[26][27] Basic Loss Per Share The basic loss per share was calculated based on the loss attributable to shareholders and the weighted average number of ordinary shares, resulting in HK$0.3 cents for 2025 - The basic loss per share for 2025 was HK$0.3 cents[4] Diluted Loss Per Share The diluted loss per share was the same as the basic loss per share because the unexercised convertible instruments had an anti-dilutive effect - The diluted loss per share for 2025 was HK$0.3 cents[4] - Unexercised convertible instruments were not included in the calculation of diluted loss per share due to their anti-dilutive effect[28] Dividend The Board does not recommend the payment of a dividend for the year ended March 31, 2025, consistent with the prior year - No final dividend will be paid for fiscal year 2025[29] Loans Receivable In fiscal year 2025, all loans receivable were settled with no impairment loss provision, whereas in 2024, there was a HK$5,000,000 loan receivable, of which HK$1,813,000 was written off Loans Receivable (HK$'000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Loans receivable | – | 5,000 | | Less: Provision for impairment loss | – | – | | Total | – | 5,000 | - The loans receivable as of March 31, 2024, were unsecured, bore interest at 9% per annum, and were fully settled during fiscal year 2025[30] - In fiscal year 2024, irrecoverable loans receivable of approximately HK$1,813,000 were written off[31] Trade Receivables In fiscal year 2025, total trade receivables increased significantly, primarily from the Insurance Brokerage and Wealth Management segments, with a substantial rise in receivables aged over one year Composition of Trade Receivables (HK$'000) | Business Segment | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Global Markets | 117 | 334 | 65.0% Decrease | | Asset Management | 1,915 | 2,398 | 20.1% Decrease | | Insurance Brokerage | 2,767 | 571 | 384.6% Increase | | Wealth Management and Advisory Services | 852 | – | N/A | | Total (before provision) | 5,651 | 3,303 | 71.1% Increase | Ageing Analysis of Trade Receivables (HK$'000) | Ageing | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Within 90 days | 4,033 | 3,094 | 30.3% Increase | | 91 to 180 days | 105 | 81 | 29.6% Increase | | 181 to 365 days | 200 | 30 | 566.7% Increase | | Over 1 year | 1,313 | 98 | 1240% Increase | | Total | 5,651 | 3,303 | 71.1% Increase | - The provision for impairment loss on trade receivables increased to HK$557,000 in fiscal year 2025 (2024: HK$328,000)[36] Trade Payables As of March 31, 2025 and 2024, all trade payables were aged within 90 days - Trade payables increased significantly to HK$11,057,000 in 2025 from HK$2,100,000 in 2024[8] Other Payables and Accrued Charges In fiscal year 2025, total other payables and accrued charges increased slightly and included a non-current portion of HK$750,000 that is unsecured and interest-free Other Payables and Accrued Charges (HK$'000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Other payables and accrued charges | 12,189 | 11,541 | | Current portion | 11,439 | 11,541 | | Non-current portion | 750 | – | - The non-current portion of HK$750,000 is unsecured, interest-free, and repayable on April 1, 2026[38] Borrowings In fiscal year 2025, the carrying amount of the liability component of convertible bonds increased to HK$39,908,000, was reclassified as a current liability, and was fully settled after the reporting period Borrowings (Convertible Bonds) (HK$'000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current borrowings – convertible bonds | 39,908 | – | | Non-current borrowings – convertible bonds | – | 37,864 | | Total | 39,908 | 37,864 | - The convertible bonds have a principal amount of HK$40,000,000, bear interest at 8% per annum, have an effective interest rate of 13.29%, and mature on May 30, 2025[40] - As of March 31, 2025, the carrying amount of the liability component of the convertible bonds was HK$39,908,000, and the equity component was HK$3,942,000[41][43] Management Discussion and Analysis Liquidity, Financial Resources and Capital Structure As of March 31, 2025, the Group's total assets, net current assets, and net assets decreased, while the gearing ratio rose significantly to 135.5% and the current ratio fell sharply to 1 Key Liquidity and Capital Structure Data (HK$'000) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total assets | 102,000 | 131,000 | 22.2% Decrease | | Net current assets | 700 | 88,000 | 99.2% Decrease | | Net assets | 29,000 | 77,000 | 62.4% Decrease | | Cash and bank balances | 55,000 | 90,000 | 38.9% Decrease | | Current ratio | 1 | 7.46 | 86.6% Decrease | | Gearing ratio | 135.5% | 49.3% | 174.8% Increase | - Borrowing costs in fiscal year 2025 were approximately HK$6,000,000, a decrease of 24.7% from 2024[45] - The Group has limited foreign exchange risk due to the HKD-USD peg and holds no hedging financial instruments[45] Financial Performance In fiscal year 2025, the Group's consolidated revenue grew by 174% and the consolidated net loss narrowed by 25%, driven by higher revenue and lower employee and IT expenses Key Financial Performance Data (HK$'000) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Consolidated turnover | 63,846 | 23,329 | 174% Increase | | Operating expenses | 105,611 | 78,417 | 35% Increase | | Consolidated net loss | 47,485 | 62,921 | 25% Decrease | - The growth in consolidated revenue was mainly driven by significant improvements in the Insurance Brokerage, Investment, and Wealth Management and Advisory Services businesses[46] - The increase in operating expenses was primarily due to collaboration with external consultants to expand the Insurance Brokerage and Wealth Management businesses[47] - The consolidated net loss attributable to shareholders decreased to approximately HK$52,000,000 (2024: HK$64,000,000)[48] Final Dividend The Board does not recommend the payment of a final dividend for the year ended March 31, 2025 - No final dividend will be paid for fiscal year 2025[49] Business Review Overall Business Performance Despite macroeconomic instability and a sluggish Hong Kong stock market, the Group improved its overall operating performance through new business strategies and strict cost control - The addition of new talent, client development, and product expansion have enhanced confidence in the Group's prospects[50] Segment Revenue Overview Total revenue for fiscal year 2025 grew by 174%, driven by significant growth in the Insurance Brokerage, Investment, and Wealth Management businesses Segment Revenue Overview (HK$'000) | Segment Revenue | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Global Markets | 3,328 | 9,967 | 67% Decrease | | Asset Management | 9,938 | 12,265 | 19% Decrease | | Insurance Brokerage | 18,777 | 1,097 | 1612% Increase | | Investment | 3,834 | – | N/A | | Wealth Management and Advisory Services | 27,969 | – | N/A | | Total Revenue | 63,846 | 23,329 | 174% Increase | Global Markets Business In fiscal year 2025, revenue from the Global Markets business declined by 67% due to the sluggish Hong Kong stock market, but the Group continued to expand its regulated digital asset business - Revenue decreased to approximately HK$3,300,000 (2024: approximately HK$10,000,000)[52] - Successfully developed a series of new cash-settled financial products linked to digital assets, including futures, options, and structured products[52] - Became the exclusive distributor in Hong Kong for digital asset structured products from Enhanced Digital Group UK Limited[52] Asset Management Business In fiscal year 2025, revenue from the Asset Management business decreased by 19% due to global macroeconomic instability, but the Group actively expanded its client base in Mainland China - Revenue decreased to approximately HK$9,900,000 (2024: approximately HK$12,300,000)[53] - Hosted multiple client events and roadshows in Hong Kong to showcase investment solutions to potential high-net-worth clients[54] - Provides fund incubation services through strategic partnerships with renowned industry veterans and organisations[54] Insurance Brokerage Business In fiscal year 2025, revenue from the Insurance Brokerage business surged by 1612% to approximately HK$18,800,000 due to increased demand for insurance products - Revenue surged to approximately HK$18,800,000 (2024: approximately HK$1,100,000)[55] - Insurance products provide clients with diversified asset allocation to mitigate risks[55] Investment Business In fiscal year 2025, the Group established an Investment business, which recorded revenue of approximately HK$3,800,000, primarily from interest income on a low-risk and high-liquidity portfolio - The Investment business is a new segment this year, with revenue of approximately HK$3,800,000[56] Wealth Management and Advisory Services Business In fiscal year 2025, the Group established a Wealth Management and Advisory Services business, which recorded revenue of approximately HK$28,000,000 by providing customized services - The Wealth Management and Advisory Services business is a new segment this year, with revenue of approximately HK$28,000,000[57] Other Important Matters Significant Investments As of March 31, 2025, the Group did not have any significant investments accounting for more than 5% of its total assets - The Group had no significant investments at the end of the reporting period[58] Events After the Reporting Period After the reporting period, the Company secured a perpetual shareholder loan facility of up to HK$40,800,000 from its direct holding company, and the convertible bonds were fully settled - Obtained an unsecured term loan facility of up to HK$40,800,000 from its direct holding company at an annual interest rate of 6.5%[59] - The convertible bonds were fully settled after the reporting period[42] Contingent Liabilities As of March 31, 2025, the Group did not have any other significant contingent liabilities - The Group had no significant contingent liabilities at the end of the reporting period[61] Capital Commitments As of March 31, 2025, the Group did not have any significant capital commitments - The Group had no significant capital commitments at the end of the reporting period[62] Material Acquisitions/Disposals During fiscal year 2025, the Group had no material investments, acquisitions, or disposals of subsidiaries and associates - The Group had no material investments, acquisitions, or disposals in fiscal year 2025[63] Employee Remuneration Policy and Retirement Benefit Scheme As of March 31, 2025, the Group's number of employees increased to 32, while employee costs decreased, and remuneration policies are reviewed regularly Employee Information (Number of persons/HK$'000) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Number of employees | 32 | 25 | 28% Increase | | Employee costs | 32,000 | 39,000 | 17.9% Decrease | - The Company has adopted a share option scheme and established a Mandatory Provident Fund retirement benefits scheme for its employees[64] Purchase, Sale or Redemption of the Company's Listed Securities During the year, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - The Company and its subsidiaries did not purchase, redeem, or sell any of the Company's listed securities during the year[65] Corporate Governance Audit Committee The Audit Committee, comprising three independent non-executive Directors, has reviewed the Group's accounting principles, internal controls, and financial reporting matters - The Audit Committee consists of three independent non-executive Directors: Ms Ling Kit Sum, Katherine, Professor Peng Qian, and Mr Zhang Guang[66] - The auditor, BDO Limited, has agreed the figures in this preliminary announcement to the Group's audited consolidated financial statements[67] Corporate Governance Practices The Company has adopted the Corporate Governance Code and complied with all code provisions during the reporting period, with one exception regarding the Chairman's attendance at the AGM - The Chairman, Dr Cheng, was unable to attend the AGM on September 23, 2024, due to other business commitments[68] - The CEO and Executive Director, Mr Hui Hao, chaired the AGM and answered questions along with other Board members[68] Directors' Securities Transactions The Company has adopted the Model Code for Securities Transactions by Directors and confirmed that all Directors have complied with this code during the reporting period - All Directors complied with the required standard of the Model Code for Securities Transactions by Directors during the reporting period[69] Annual General Meeting The Company will publish and dispatch a notice of the Annual General Meeting to shareholders in due course - The notice of the Annual General Meeting will be published in due course[70] Publication of Annual Report and Board Members This annual results announcement is published on the websites of the Stock Exchange and the Company, and the annual report will be dispatched to shareholders in due course - This announcement is published on the HKEX website (https://www.hkex.com.hk) and the Company's website (https://www.artatechfin.com)[71](index=71&type=chunk) - The Board of Directors includes Chairman Dr Cheng Chi-Kong, Adrian, CEO Mr Hui Hao, CFO Ms Li Chuchu, and Independent Non-executive Directors Ms Ling Kit Sum, Katherine, Mr Zhang Guang, and Professor Peng Qian[73]