Financial Performance - For the year ended March 31, 2022, the Group's revenue was approximately HK$441.1 million, a decrease of 12.2% compared to HK$502.6 million in the previous year[13]. - Profit attributable to owners of the Company was approximately HK$60.2 million, down from HK$189.6 million in 2021, primarily due to increased impairment losses[14]. - Basic earnings per share for the year were HK0.62 cents, a decrease from HK1.96 cents in 2021[15]. - The broking business reported a profit of approximately HK$7.4 million for the year ended March 31, 2022, a decrease of 62.1% compared to HK$19.5 million in 2021[32]. - Revenue from broking decreased by 12% to approximately HK$62.7 million in 2022, down from HK$71.3 million in 2021[32]. - The money lending business recorded a profit before tax of approximately HK$13.3 million for the year ended March 31, 2022, down from HK$62.6 million in 2021[41]. - The investment division reported a profit of approximately HK$6.4 million in 2022, down from HK$13.0 million in 2021, mainly due to fair value losses on investment properties[46]. Impairment and Credit Risk - The Group recorded a net impairment loss on accounts receivable from margin clients of approximately HK$130.1 million, up from HK$55.7 million in the previous year[14]. - The decrease in revenue was mainly due to reduced interest income from margin financing, money lending, and debt securities[13]. - The Group focused on debt recovery during the year to manage credit risk effectively[26]. - Net impairment loss on margin clients receivable was approximately HK$130.1 million in 2022, significantly higher than HK$55.7 million in 2021[33]. Market Conditions - The average daily turnover on the Main Board and GEM during the year was approximately HK$147.0 billion, a decrease of 5.2% compared to HK$155.1 billion in the prior financial period[25]. - The Hang Seng Index closed at 21,996 points at the end of March 2022, down from 28,378 points at the end of March 2021[25]. - The property market sentiment in Hong Kong was sluggish in Q1 2022, with transaction volume plunging 34% quarter on quarter[30]. Assets and Liabilities - As of March 31, 2022, equity attributable to owners of the Company was approximately HK$5,751.5 million, an increase of approximately HK$142.4 million or 2.5% compared to the previous year[65]. - The Group's net current assets increased to approximately HK$5,341.7 million, with a current ratio of 6.8 times, up from 6.6 times in 2021[70]. - Bank balances and cash on hand rose to approximately HK$1,835.2 million, a significant increase from HK$658.9 million in 2021, primarily due to cash inflow from bank borrowings and a deposit received for the disposal of a subsidiary[70]. - The Group had bank borrowings of approximately HK$94.6 million as of March 31, 2022, compared to nil in the previous year, with undrawn banking facilities amounting to approximately HK$763.4 million[71]. - The gearing ratio as of March 31, 2022, was 0.02, up from 0.01 in 2021, indicating a slight increase in leverage[72]. Corporate Governance - The Company has complied with the Corporate Governance Code provisions, except for the separation of the roles of chairman and CEO until May 31, 2022[114][119]. - The Board currently comprises six Directors, with more than one-third being non-executive and independent of management[125]. - The Company emphasizes good corporate governance practices to enhance investor confidence and accountability[112][115]. - The Board has established three committees to delegate various responsibilities, ensuring effective governance and oversight[120]. - The Company has adopted a board diversity policy to improve effectiveness by ensuring a balanced mix of skills, experience, and perspectives among board members[130]. Dividends - The Directors recommended a final dividend of HK0.5 cent per share, resulting in total dividends of HK1 cent per share for the financial year[83]. - The Company has adopted a dividend policy to maintain adequate cash reserves for future growth when recommending or declaring dividends[177]. - The Board has the discretion to declare and distribute dividends, considering the Group's financial position and future cash requirements[177]. Management and Leadership - Mr. Hung Hon Man, aged 68, is the chairman and founder of the Group, overseeing corporate strategy and operations[96]. - Mr. Kam Eddie Shing Cheuk, aged 47, was appointed as CEO on June 1, 2022, and has over 25 years of experience in auditing and financial management[101]. - The management remains cautiously optimistic about future business development and overall performance, focusing on high-quality investments in Asia and Europe[66].
结好控股(00064) - 2022 - 年度财报