Corporate Governance - The company has established an audit committee to review and supervise the financial reporting process and internal controls, with a meeting held on March 27, 2023, to review the consolidated financial statements for the year ending December 31, 2022[14]. - The company complied with the corporate governance code, except for the provision that the roles of chairman and CEO should be separated, which was not adhered to until September 30, 2022[17]. - The company has appointed Mr. Li Feng as CEO effective October 1, 2022, following the resignation of Mr. Watanabe Tomohiro from the CEO position[17]. - The company’s board held five meetings during the year to ensure all major issues were covered[8]. - The board of directors is collectively responsible for the overall management of the company and has established specific committees to assist in governance[9]. - The company has provided comprehensive onboarding materials for newly appointed directors to ensure they understand their responsibilities under relevant regulations[13]. - The company’s governance practices are based on the principles and code provisions set out in the corporate governance code in Appendix 14 of the listing rules[16]. - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors[20]. - The company has appointed a new auditor, Zhongshen Zhonghuan (Hong Kong) CPA Limited, on November 8, 2022, following the resignation of PwC[27]. - The company’s board of directors reported no significant events affecting the company since the end of the fiscal year[152]. - The company’s independent non-executive directors have confirmed their independence as per the listing rules[182]. Financial Performance - The company recorded a loss of approximately HKD 622,808,000 for the year ended December 31, 2022, compared to a profit of HKD 70,180,000 in 2021, primarily due to increased losses from associated companies and higher operating expenses[79]. - Total operating expenses for the year ended December 31, 2022, were approximately HKD 188,997,000, an increase of about 29.4% from HKD 146,026,000 in 2021[79]. - The company’s consolidated revenue for the fiscal year ended December 31, 2022, was approximately HKD 243,757,000, a decrease of about 19% compared to HKD 302,540,000 in the previous year, primarily due to fluctuations in the investment market affecting asset management fee income[60]. - Total revenue for the year 2022 was approximately HKD 243,757,000, a decrease of 19% compared to HKD 302,540,000 in 2021[103]. - Interest income decreased by 11% to HKD 194,900,000 from HKD 219,155,000 in the previous year[103]. - Commission and fee income saw a significant decline of 56%, falling to HKD 30,463,000 from HKD 69,841,000[103]. - Investment income increased by 36%, reaching HKD 18,394,000 compared to HKD 13,544,000 in 2021[103]. - The expected credit loss provision for the year ended December 31, 2022, was approximately HKD 174,675,000, a decrease from HKD 496,587,000 in 2021, with the provision ratio for receivables at 79.4%[82]. - Cash inflow from operating activities for the year ended December 31, 2022, was approximately HKD 473,946,000, compared to HKD 501,616,000 in 2021[80]. - The company has sufficient financial resources to meet its operational requirements[108]. Market and Business Strategy - The company plans to enhance its asset management and wealth management capabilities in 2023, aiming to increase asset management scale and effectively utilize financial licenses across regions[51]. - The company has actively expanded its business in mainland China, Japan, and Canada since 2020, with the Japanese company expected to exceed JPY 150 billion in fund scale by Q1 2023[50]. - The company aims to leverage flexible performance mechanisms and effectively utilize talent to enhance customer service capabilities[51]. - The company is actively researching new business opportunities and enhancing its financial technology capabilities to increase corporate value[51]. - The company anticipates continued market expansion in Japan and Canada, enhancing license management and service levels while diversifying product offerings[50]. - The company aims to expand its asset management and investment banking services, leveraging opportunities from the Greater Bay Area economic integration[102]. - The company plans to explore innovative business models to capture market opportunities and expand its business footprint[102]. Risk Management - The company plans to implement strict risk management to mitigate the impact of market volatility and seek potential investment opportunities to maximize shareholder value[94]. - The company is focusing on risk analysis and monitoring for key industries, particularly real estate, to identify undervalued opportunities while controlling overall market risks[50]. - The company will continue to strengthen its credit policies and assessments to maintain the credit quality of receivables[82]. - The company is closely monitoring government policies and regulations, as non-compliance could lead to regulatory penalties or business operation suspensions[125]. Shareholder Information - The company has no distributable reserves as of December 31, 2022, remaining at zero Hong Kong dollars, consistent with the previous year[158]. - The company does not recommend the payment of any dividends for the year ended December 31, 2022, remaining at zero Hong Kong dollars, similar to the previous year[180]. - The company has a total of 462,072,000 shares representing 1.33% of the issued share capital that are subject to re-election at the upcoming annual general meeting[163]. - The company has a total of 34,714,459,250 shares issued as of December 31, 2022[187]. - The company has a total of 2,892,871,925 shares available for incentive awards[179]. - The current authorized shares available for issuance under the plan amount to 241,365,125 shares, representing approximately 0.70% of the issued shares as of the report date[190]. Environmental and Social Responsibility - The company has implemented energy-saving measures in several office properties to enhance environmental sustainability[153]. - The company did not make any charitable donations during the year ended December 31, 2022, compared to HKD 42,000 in donations made in 2021[133].
中薇金融(00245) - 2022 - 年度财报