Financial Performance - Total revenue for the year ended March 31, 2023, was HK$12.79 million, representing a 70.7% increase compared to the previous year[6]. - The global markets business generated revenue of HK$10.14 million, up 71.3% from HK$35.37 million in the previous year[11]. - The asset management business revenue decreased by 95.8% to HK$0.17 million from HK$4 million in 2022 due to sluggish market conditions[27]. - The insurance brokerage business revenue decreased by 42.6% to HK$2 million from HK$4 million in 2022, attributed to challenging market conditions[14]. - The Group recorded a consolidated net loss attributable to Shareholders of HK$90 million for the year ended 31 March 2023, compared to a net profit of HK$2,770 million in 2022[74]. - Operating expenses amounted to HK$94 million, remaining stable compared to HK$92 million in the previous year, excluding one-off restructuring gains and costs[74]. - Revenue from global markets business decreased by 71.3% to HK$10 million, down from HK$35 million in 2022 due to a slowdown in IPO financing and rising interest rates[76]. - Other income and gains, net decreased to HK$2 million for the year, down from HK$6 million in 2022, primarily due to a reduction in referral income[74]. - The Group's consolidated turnover for the year ended March 31, 2023, decreased by 70.7% to HK$12.79 million from HK$43.65 million in 2022[84]. - The asset management business revenue fell by 95.8% to HK$200,000 from HK$4 million in 2022, attributed to a prolonged downturn in financial markets[90]. - Insurance brokerage revenue decreased by 42.6% to HK$2 million from HK$4 million in 2022, reflecting challenging market conditions[91]. Business Development and Strategy - The Group has successfully upgraded its brokerage trading platform, expanding product offerings to include global listed stocks, government bonds, ETFs, futures, options, and foreign exchange[20]. - The Group is developing cross-border asset management businesses in China through strategic partnerships with regulated financial institutions[27]. - The company is focusing on acquiring professional investors, including family offices and licensed funds, and is in advanced discussions with global licensed institutions for digital asset product structuring and distribution[49]. - The Group is transforming its global markets business to meet the growing demand for cross-border wealth management products and is in advanced discussions with top-tier Chinese financial institutions for product distribution collaborations[53]. - The asset management business is focusing on developing expertise in various asset classes and preparing to launch funds with different strategies to meet clients' investment goals[53]. - The Group is participating in the HKMA's e-HKD Pilot Programme, focusing on the evolution of digital currency and establishing a Fintech Distributed Ledger Technology (DLT) system[53]. - The Group is focusing on product innovation, developing advanced solutions in digital economy infrastructure and applications[89]. - The Group anticipates a rebound in traditional investment banking business and expects growth in its digital asset business during the financial year ending March 31, 2024[86]. Environmental, Social, and Governance (ESG) - The Group's business operations contributed to an emission of 92.09 tons of carbon dioxide equivalent (tCO2eq) during the Reporting Period, primarily from electricity consumption[108]. - The overall intensity of the GHG emissions for the Group was 0.02 tCO2eq/m2, calculated based on the total floor area of the Quarry Bay Office and Wanchai Office[108]. - Total GHG emissions in 2023 were similar to that in the last Reporting Period, with a decrease in total GHG emission intensity by 87.5% due to an expansion of business with a newly acquired office[115]. - The Group strictly abides by applicable laws and regulations regarding environmental protection and pollution control, with no significant non-compliance cases identified during the Reporting Period[108]. - The Group is committed to implementing initiatives to reduce its environmental impact and contribute to fighting against climate change[116]. - The Group's GHG emissions included energy indirect (scope 2) emissions from purchased electricity and other indirect (scope 3) emissions from wastepaper disposal[113]. - The emission factor for calculating emissions from purchased electricity was 0.71 kgCO2/kWh, as referenced in the HK Electric Investments Sustainability Report 2022[114]. - The Group has adopted the materiality assessment results from the Last Reporting Period to prioritize material ESG issues[102]. - Key material ESG issues include climate change, air and greenhouse gas emissions, and waste management[103]. - The Group welcomes stakeholders' feedback on its ESG approach and performance[108]. Corporate Governance - The Board convened a total of 10 meetings during the year ended March 31, 2023, with decisions recorded in meeting minutes[134]. - The Executive Directors' remuneration includes a basic salary, pensions, and discretionary bonuses, with details disclosed in the financial statements[160]. - The Audit Committee consists of two independent non-executive directors and one non-executive director, ensuring compliance with financial regulations[154]. - The Remuneration Committee reviewed the company's remuneration policy during the year, meeting once to discuss director compensation[160]. - The Nomination Committee is responsible for evaluating the independence of non-executive directors and recommending appointments[161]. - The company complied with all major aspects of laws and regulations significant to its operations, with no material legal compliance issues reported[146]. - The Board is collectively responsible for the management and operation of the company, overseeing strategic directions and financial performance[131]. - Continuous professional development activities for directors were conducted, including in-house training and updates on legal requirements[150]. - The company has adopted a board diversity policy considering factors such as gender, age, cultural background, and professional experience to enhance governance standards[175]. - The Nomination Committee reviewed the board diversity policy and deemed it effective and appropriate for the company, ensuring a balanced skill set and experience among board members[179]. - The company emphasizes the importance of internal control systems for effective risk management, referencing the COSO framework[192]. - The Audit Committee is tasked with reviewing the financial controls, risk management, and internal control systems of the group[172]. - The company has engaged external auditors to provide audit and non-audit services, ensuring their independence and objectivity as per professional ethics guidelines[197]. - The external auditor for the company is KPMG (Hong Kong) and has been confirmed as independent according to the Hong Kong Institute of Certified Public Accountants' Code of Ethics[198]. - During the year, the external auditor provided audit, audit-related, and permissible non-audit services to the Group, ensuring no compromise to auditor independence[200]. Financial Position - The Group's non-current financial assets at fair value through other comprehensive income amounted to HK$4 million as of March 31, 2023[31]. - As of March 31, 2023, the company had a non-current financial asset through other comprehensive income valued at HK$4 million, representing 3.3% of total assets of HK$117 million[43]. - The company recorded a fair value loss of HK$412,000 for a convertible loan during the reporting period, compared to no loss in the previous year[43]. - As of March 31, 2023, the company had a non-current financial asset at fair value through profit or loss of HK$2 million related to a convertible loan agreement[43]. - The company recorded net unrealised fair value gain of HK$7,000 from listed equity investments during the year ended March 31, 2023[43]. - The company had no material capital commitments as of March 31, 2023[37]. - The company did not have any material contingent liabilities as of March 31, 2023[37]. - As of March 31, 2023, the Group's total assets were approximately HK$117 million, down from HK$133 million in 2022, with net current assets of HK$30 million and net assets of HK$34 million[81]. - The Group has not pledged any assets as of March 31, 2023, and did not have any significant investments exceeding 5% of total assets[58][63].
裕承科金(00279) - 2023 - 年度财报