Financial Performance - The Hang Seng Index fell by 13.5% during the fiscal year 2023, closing at 18,916 points, down from 21,860 points at the end of June 2022[10]. - The average monthly total turnover for the Main Board and GEM decreased by 20% to HKD 233.3 billion, compared to HKD 291.7 billion for the fiscal year 2022[13]. - The financing amount for the fiscal year 2023 was approximately HKD 103 billion, a decrease of 26% from HKD 139 billion in the fiscal year 2022[13]. - The group recorded a post-tax loss of HKD 79 million for the fiscal year 2023, consistent with the post-tax loss of HKD 79 million in fiscal year 2022[14]. - Total comprehensive expenses for the fiscal year 2023 amounted to HKD 94 million, compared to HKD 72 million in fiscal year 2022[14]. - Commission and fee income from financial intermediation for fiscal year 2023 was HKD 15 million, down from HKD 45 million in fiscal year 2022[15]. - Interest income remained stable at HKD 18 million for both fiscal years 2023 and 2022, with bank deposit interest income increasing by HKD 11 million due to interest rate hikes[15]. - The brokerage and financing department's total revenue decreased to HKD 26 million in fiscal year 2023 from HKD 36 million in fiscal year 2022, with brokerage commission income dropping to HKD 7 million from HKD 16 million[17]. - The corporate finance and capital markets department's total revenue fell to HKD 6 million in fiscal year 2023 from HKD 24 million in fiscal year 2022[19]. - The asset management department maintained total revenue of HKD 4 million for both fiscal years, with a new investment fund launched in October 2022[20]. - The self-investment department reported total revenue of HKD 7 million in fiscal year 2023, compared to HKD 6 million in fiscal year 2022, but incurred a total loss of HKD 21 million in fiscal year 2023[23]. - The group reported cash and cash equivalents of HKD 160 million, primarily denominated in HKD[28]. - The company reported a total loss for the year of HKD 78,940,000, compared to HKD 78,696,000 in 2022, showing a marginal increase in losses[200]. Strategic Focus and Restructuring - The company is focusing on income-generating assets in a high-interest-rate environment as part of its dual strategy[10]. - The company is assessing and restructuring its investment portfolio to adapt to the prolonged economic downturn[11]. - The company aims to reverse the trend of declining revenue in the next fiscal year[11]. - The company has reduced its scale to respond to structural changes in the post-pandemic environment[11]. Asset Management and Investments - The group acquired approximately 19% of China New Economy Investment Limited, resulting in a share of performance loss of HKD 5 million for fiscal year 2023[24]. - The group redeemed two investment funds during the year, generating proceeds of HKD 8 million, improving cash flow and asset portfolio construction[24]. - As of June 30, 2023, total assets amounted to HKD 1.438 billion, with approximately 64% being liquid assets[28]. - The net value of current assets was HKD 316 million, representing about 39% of the group's net assets as of June 30, 2023[28]. - The total amount of bank loans as of June 30, 2023, was approximately HKD 76 million, used to finance the group's investment portfolio[28]. - The group has invested in two joint ventures holding commercial properties in Japan and one joint venture holding two adjacent plots of land in Hong Kong[26]. Corporate Governance - The board of directors consists of seven members, including the Chairman and the CEO, with a clear division of responsibilities between the board and management[38]. - The board held a total of six meetings during the year, addressing key matters such as the approval of interim and final results, and evaluating business performance[39]. - The company emphasizes the importance of training for directors, providing ongoing professional development to enhance their knowledge and skills[47]. - All independent non-executive directors have confirmed their independence in accordance with listing rules, ensuring compliance and governance standards[44]. - The company has a robust risk management and internal control system in place, overseen by the board[46]. - The board is responsible for approving significant acquisitions and asset sales, ensuring strategic alignment with the company's long-term goals[46]. - The company has appointed independent non-executive directors to key committees, enhancing governance and oversight[44]. - The board has authorized management to execute approved strategies, ensuring effective operational execution[43]. - The company has received confirmations of training records from all directors as of June 30, 2023, demonstrating commitment to continuous professional development[48]. - The board's composition includes a mix of executive and independent directors, fostering diverse perspectives in decision-making[38]. - The roles of the Chairman and CEO have been separated, with Dr. Cai Guanshen as Chairman and Mr. Cai Guanming as CEO, ensuring a clear division of responsibilities[54]. Risk Management - The board understands that the risk management system is essential for achieving strategic goals and protecting shareholder interests[74]. - The Audit Committee is responsible for overseeing the risk management system and meets semi-annually with senior management to discuss its effectiveness[79]. - The board has established various committees, including the Risk Management Committee, to identify, assess, and manage risks associated with the group's business[81]. - The board has established a Risk Management Committee to oversee the group's proprietary trading activities, monitoring policies and maximum limits set by the board[85]. - The Credit Committee is responsible for establishing credit approval procedures for brokerage clients, assessing credit risks, and setting credit limits, meeting monthly[87]. - The Finance Committee aims to minimize credit risks arising from the group's general lending activities and to develop internal policies for loan assessment and approval[89]. - The group faces significant operational risks, particularly in investment, brokerage, corporate finance, and capital markets, influenced by interest rates and global investment conditions[94]. - Credit risk arises from various areas, including counterparty defaults during settlement processes, with the Finance and Credit Committees responsible for monitoring credit limits[96]. - Foreign exchange risk primarily stems from currency fluctuations affecting the group's financial condition and operational performance[97]. - The group has implemented security control procedures to mitigate cybersecurity threats, although it cannot guarantee that such attacks will not adversely affect financial performance[101]. Shareholder Communication and Dividends - The company encourages direct communication with shareholders through various channels, including email and fax[108]. - The company amended its articles of association to allow for hybrid or electronic meetings for greater flexibility in shareholder meetings[115]. - The board is committed to improving communication and relationships with shareholders[118]. - The company has established a website to provide timely updates on business progress and regulatory announcements[118]. - The company has adopted a dividend policy aimed at allowing shareholders to share in the group's profits while retaining sufficient reserves for future development[119]. - The board will consider the group's actual and expected financial performance, financial condition, operational funding needs, capital expenditure requirements, and future development plans before declaring dividends[119]. - The board has the authority to review and modify the dividend policy as necessary, with no guarantee of dividends being declared or paid at any specific amount or time[119]. - The interim dividend of HKD 0.01 per ordinary share was paid on March 31, 2023, with a proposed final dividend of HKD 0.01 per ordinary share subject to shareholder approval at the upcoming annual general meeting[142]. Audit and Compliance - The audit aimed to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error[194]. - The audit committee assists the company's board in overseeing the financial reporting process[193]. - The company is responsible for preparing financial statements that are free from material misstatement due to fraud or error, and for maintaining internal controls[192]. - The company must disclose any matters related to its ability to continue as a going concern when preparing financial statements[192]. - The independent auditor, Ernst & Young, has been appointed to replace Deloitte and will be proposed for reappointment at the upcoming annual general meeting[177]. Social Responsibility and Charitable Contributions - The company made charitable donations totaling HKD 20,310 during the year, compared to none in 2022[145]. - The group is committed to corporate social responsibility and environmental protection, with detailed disclosures in the ESG report[175].
新华汇富金融(00188) - 2023 - 年度财报