Financial Performance - As of June 30, 2025, the company's net asset value was HKD 157 million, a slight decrease from HKD 165 million the previous year, primarily due to fluctuations in the fair value of listed investments and initial investments in non-listed clean energy projects[11]. - The company recorded a net loss of HKD 8.81 million for the year, compared to a profit of HKD 27.9 million in the previous year, mainly due to losses from listed investments and ongoing investments in clean energy projects that have not yet generated significant revenue[11]. - The group recorded a net loss of HKD 8,809,000 for the year, compared to a net profit of HKD 27,897,000 for the previous year, primarily due to a fair value loss of HKD 9,284,000 from non-listed investments[18]. - Dividend income from non-listed investments decreased by 86.60% to HKD 164,000, down from HKD 1,224,000 in the previous year[18]. - The group's non-listed investment portfolio recorded a total loss of HKD 10,631,000 for the year ended June 30, 2025, compared to a profit of HKD 23,181,000 in 2024, marking a significant decline[22]. - The fair value of the group's non-listed investments decreased by 20.39% from HKD 52,339,000 last year to HKD 41,667,000 as of June 30, 2025[22]. - The company reported a one-time fair value gain of HKD 53,525,000 from the sale of Jilin Jusheng Light Alloy Co., Ltd. last year, which was not repeated this year[22]. Investment Strategy - The clean energy sector, particularly bioethanol and biodiesel, is experiencing rapid growth supported by national policies, aligning with the company's strategic focus on clean energy investments[10]. - The group plans to focus on the bioethanol industry while exploring opportunities in the global virtual asset market, ensuring compliance with regulatory requirements[14]. - The company is exploring opportunities in the virtual asset market, which is developing under a more regulated framework, presenting new growth prospects for financial investments[9]. - The company plans to exit the micro-lending industry due to declining performance and increasing operational risks, focusing instead on investments in the bioenergy sector[23]. - The total investment cost in the bioenergy sector amounted to HKD 503,581,000, with a fair value of HKD 27,888,000 as of June 30, 2025[25]. Cost Management - Administrative and other expenses decreased by 6.3% from HKD 7.59 million to HKD 7.11 million, reflecting effective cost control measures[11]. - Administrative expenses decreased by 6.29% to HKD 7,112,000, primarily due to reduced employee costs and director remuneration[18]. - The total employee cost for the year was HKD 1,920,000, a decrease from HKD 3,498,000 in 2024[33]. Market Conditions - The overall market sentiment remains volatile, influenced by macroeconomic uncertainties and geopolitical factors, impacting the fair value of investments[8]. - The company has made significant progress in recovering investment prepayments and selling receivables, improving liquidity for future business expansion[11]. - The company has fully impaired its investments in microloans, effectively mitigating industry downturn risks[12]. Corporate Governance - The board aims to achieve a performance rebound in the fiscal year 2026 through portfolio optimization and improved operational efficiency[17]. - The company has adopted the corporate governance code principles as per the listing rules, with a deviation regarding the roles of the chairman and CEO being held by the same individual[102]. - The board of directors consists of both executive and non-executive members, ensuring a balanced composition with at least three independent non-executive directors[108]. - The company has established frameworks and formal communication channels to maintain good relationships with employees and stakeholders, despite having no major customers or suppliers this year[53]. - The company has a shareholder communication policy to maintain ongoing dialogue with shareholders and encourage active communication[137]. Environmental and Social Responsibility - The company is committed to promoting environmental and social sustainability, adhering to all relevant laws and regulations in Hong Kong[80]. - The company has committed to sustainable development policies, as outlined in the annual environmental, social, and governance report[143]. - The company aims to reduce energy consumption and paper usage, promoting responsible behavior among employees[159]. - The company has implemented various measures to minimize environmental impact, including energy conservation and encouraging recycling of office supplies[160]. - The company has identified climate-related risks, including rising average temperatures and extreme weather events, as significant operational risks[163]. Risk Management - The group aims to enhance its risk management framework and optimize capital allocation to ensure stable operations[15]. - The company has established a risk management and internal control system to provide reasonable assurance against material misstatements or losses[135]. - The audit committee reviewed the effectiveness of the risk management and internal control systems, concluding that they are effective and adequate[135]. Shareholder Information - The board did not recommend a final dividend for the year, consistent with the previous year[29]. - The company reported no dividend distribution for the fiscal year ending June 30, 2025, consistent with the previous year[52]. - The company has maintained its charter documents without any changes during the year[140]. - Public float exceeds 25% of the company's issued share capital as of the report date[98]. Audit and Compliance - The company has engaged Ernst & Young Hong Kong as its auditor for the financial year ending June 30, 2025, and will propose their reappointment at the upcoming annual general meeting[99]. - The independent auditor's report provides a basis for the opinion on the consolidated financial statements, ensuring compliance with the relevant auditing standards[192]. - The audit aimed to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[200].
中国金融国际(00721) - 2025 - 年度财报