Financial Performance - The company recorded revenue of approximately HKD 186,000,000 for the year, a decrease from HKD 619,000,000 in the previous year[10] - The loss attributable to the company's owners was approximately HKD 14,992,000, compared to HKD 9,091,000 in the previous year, with a basic loss per share of HKD 0.063[10] - The group's administrative and other operating expenses were approximately HKD 9,016,000, down from HKD 10,944,000 in the previous year[10] - The net loss from fair value changes of financial assets recognized in profit or loss was approximately HKD 5,546,000, compared to a gain of HKD 1,353,000 in the previous year[10] - The company reported a revenue of HKD 44,394,813 for the year ended December 31, 2021, an increase from HKD 40,935,914 in 2020, representing a growth of approximately 11.3%[67] - The company incurred a loss attributable to owners of the company of HKD 14,991,938 for the year ended December 31, 2021, compared to a loss of HKD 9,090,504 in 2020, indicating a deterioration in performance[67] - Total assets decreased to HKD 22,756,774 in 2021 from HKD 27,732,001 in 2020, reflecting a decline of approximately 18%[67] - Total liabilities increased significantly to HKD 3,307,438 in 2021 from HKD 750,061 in 2020, marking a rise of over 340%[67] - The company did not recommend the payment of dividends for the year ended December 31, 2021, consistent with the previous year[64] - The company’s total equity decreased to HKD 19,449,336 in 2021 from HKD 26,981,940 in 2020, a decline of approximately 28.3%[67] Investment Strategy - The investment portfolio includes major holdings in Tencent, Alibaba, Meituan, and JD.com, among others, reflecting a diversified investment strategy[11] - The company aims to monitor the market cautiously and focus on a diversified investment portfolio to capture growth opportunities[11] - The company primarily focuses on investments in listed and unlisted securities, aiming for capital appreciation and income generation through diversified investments[60] Economic and Market Conditions - The ongoing COVID-19 pandemic continues to impact the global economy, with uncertainties arising from new variants and geopolitical tensions affecting future performance[11] - The management anticipates a challenging global economic outlook and will adopt prudent measures to manage existing investments[46] Corporate Governance - The company emphasizes high standards of corporate governance and adheres to the corporate governance code as per the listing rules[117] - The board consists of two executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2021[118] - Independent non-executive directors make up more than one-third of the board, ensuring adequate oversight and independence[118] - The company has established three committees: audit, remuneration, and nomination, to oversee specific areas of governance[125] - The company has adopted a nomination policy to ensure a balanced skill set and experience within the board of directors[133] - The remuneration committee has reviewed and recommended compensation policies for directors and senior management, ensuring no director participated in determining their own compensation[140] - The audit committee held at least two meetings annually, reviewing the group's financial controls and risk management systems[143] Shareholder Communication - The company has established multiple communication channels with shareholders, including printed annual reports and mid-term reports, which are also available on the company's and stock exchange's websites[177] - The company maintains a shareholder communication policy to ensure that shareholders and stakeholders can access comprehensive and understandable information regarding financial performance and strategic goals[178] - The company’s annual general meeting serves as a primary opportunity for shareholders to exchange views with the board, with key members present to address shareholder inquiries[174] - The company has established a process for shareholders to propose resolutions at general meetings, requiring written proposals to be submitted at least 60 days prior to the meeting[181] ESG Commitment - The board emphasizes the importance of a robust environmental, social, and governance (ESG) framework for the company's sustainability and ongoing development[196] - The company aims to balance shareholder interests with social responsibilities while enhancing data collection for better ESG performance disclosure[196] - The board is the highest decision-making body for ESG management, overseeing policies, strategies, risks, and opportunities related to ESG[197] - A risk-based management approach is adopted by the board to assess and prioritize ESG-related issues, enhancing the effectiveness of risk management[199] - The company is committed to improving its ESG performance and welcomes feedback on its sustainability efforts[196] Financial Management - The group had no significant contingent liabilities as of December 31, 2021[43] - The group has no major capital commitments as of December 31, 2021[36] - The company raised a total of HKD 7.54 million from the placement of 40,080,000 new shares at HKD 0.188 per share[27] - The net amount raised from fundraising activities as of December 31, 2021, was HKD 6.96 million for future investments and business development, and HKD 0.50 million for general working capital[31] - The total employee cost for the year ended December 31, 2021, was HKD 5,196,859, an increase from HKD 4,980,000 in 2020[39] - The group's capital expenditure for the year ended December 31, 2021, was HKD 86,550, significantly lower than HKD 651,199 in 2020[35] - The group's total liabilities as of December 31, 2021, included lease liabilities of HKD 2,493,106, up from HKD 277,602 in 2020[31] - The capital-to-equity ratio as of December 31, 2021, was 0.170, compared to 0.028 in 2020[31] Risk Management - The risk management process utilizes a business risk model to identify and assess strategic, operational, financial, and information risks[166] - The board is responsible for ensuring the effectiveness of the internal control and risk management systems to protect shareholder investments[163] - The internal audit review found no significant deficiencies in the internal control system across all reviewed areas[164] - The board evaluated the effectiveness and adequacy of the internal control and risk management systems as of December 31, 2021, concluding that the existing systems are sufficient and effective in safeguarding the company's assets and protecting shareholders' interests[168]
核心经济投资(00339) - 2021 - 年度财报