Financial Performance - The company's revenue for the year ended December 31, 2021, decreased to approximately HKD 85,991,000, a decline of 63.4% compared to HKD 234,659,000 for the year ended December 31, 2020[17]. - The net loss attributable to shareholders for the year ended December 31, 2021, was approximately HKD 7,637,000, compared to a net loss of HKD 38,003,000 for the year ended December 31, 2020[18]. - The high-tech business segment generated revenue of approximately HKD 48,728,000 for the year ended December 31, 2021, down from HKD 180,358,000 in 2020, resulting in a loss of HKD 23,473,000 compared to a profit of HKD 21,823,000 in the previous year[17]. - The investment property segment recorded rental income of approximately HKD 7,016,000 for the year ended December 31, 2021, down from HKD 12,488,000 in 2020, while fair value gains from investment properties were approximately HKD 16,368,000 compared to a fair value loss of HKD 3,125,000 in 2020[25]. - The securities trading and investment segment incurred a loss of approximately HKD 12,500,000 for the year ended December 31, 2021, compared to a loss of HKD 24,472,000 in 2020, with financing costs of approximately HKD 10,912,000[29]. - The company generated revenue of approximately HKD 1,125,000 from mask and testing kit products for the year ended December 31, 2021, down from HKD 3,984,000 in 2020[58]. - The company recorded a pre-tax profit of approximately HKD 153,000 from mask and testing kit products for the year ended December 31, 2021, compared to HKD 1,037,000 in 2020[58]. - The company has ceased local mask production since May 2020 due to decreased demand and has sold related subsidiaries, recording a sale gain of approximately HKD 755,000[58]. - The company’s reserves available for distribution to shareholders as of December 31, 2021, were approximately HKD 850,033,000, a decrease from HKD 866,730,000 in 2020[119]. Business Strategy and Operations - The company plans to continue its securities brokerage business, capitalizing on the return of Chinese concept stocks to Hong Kong, which is anticipated to attract capital inflow[11]. - Future World Securities, a wholly-owned subsidiary, has obtained licenses to conduct regulated activities in securities trading and advisory services, aiming to provide a broader range of services to clients[11]. - The company is actively reviewing its business portfolio and will make necessary adjustments to align with the overall interests of the company and its shareholders[10]. - The company has no specific plans to reduce, cease, sell, or expand its existing businesses as of the last practical date[10]. - The company is focused on developing opportunities in its core businesses, including high-tech services, property investment, and financing services[10]. - The company aims to create long-term value for shareholders through strategic development in high-tech and related services[10]. - The company continues to seek development opportunities in its core business areas to enhance shareholder value[10]. - The company aims to expand and optimize its investment property portfolio to generate stable rental income and/or capital appreciation[26]. - The company plans to continue seeking orders in the intelligent storage equipment business as part of its artificial intelligence products and application solutions strategy[21]. - The board recognizes the high competition in China's high-tech business and will strive to secure orders to ensure sustainable development of this segment[23]. - The group is actively seeking opportunities in the e-commerce business segment, which did not generate any revenue or losses for the year ended December 31, 2021[61]. Shareholder and Governance - The company acknowledges the support from shareholders, investors, and clients, emphasizing the contributions of its employees over the past year[13]. - The company did not pay an interim dividend for the year, consistent with the previous year[97]. - The board does not recommend a final dividend for the year, similar to the previous year[98]. - The company has established a compensation policy based on employee performance, experience, and current market rates, including a share incentive plan and stock option plan[159]. - The company has complied with the disclosure requirements under the applicable listing rules[158]. - The company confirmed that there were no significant interests held by directors in any transactions related to the company's business during the year[151]. - The company operates independently from its major shareholder, Harbin Institute of Technology Robot Group, which also holds 17.28% of the issued share capital[153]. - The company has established a framework for continuous professional development for all directors[184]. - The company has maintained compliance with the corporate governance code, with the exception of the roles of chairman and CEO being held by the same individual[173]. - The board consists of ten directors, including six executive directors and four independent non-executive directors, ensuring a balanced governance structure[175]. - Independent non-executive directors accounted for more than one-third of the board, complying with listing rules[181]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence[161]. Risk Management - The company identified major risks including economic downturns, operational competition, and regulatory compliance[102]. - The company has not experienced any significant violations of applicable laws and regulations during the year[108]. - The company will continue to monitor foreign currency risks closely, as most transactions, assets, and liabilities are denominated in the functional currencies of its entities[67]. Employee and Management - The group employed 46 staff members as of December 31, 2021, down from 66 in 2020, with total employee costs amounting to approximately HKD 18,710,000, a decrease from HKD 30,703,000 in 2020[70]. - The management team has extensive experience in various sectors, including finance, property investment, and industrial automation, with over 20 years of experience in administrative and financial management[79][87]. - The management team has a strong educational background, with degrees in finance, economics, and engineering, supporting their operational capabilities[79][87][91]. - The management team is committed to enhancing operational efficiency and exploring new market opportunities through innovative technologies[87]. Share Options and Capital Structure - The company adopted a new share option plan in June 2021, which will remain effective until June 29, 2031, while the previous plan was terminated[133]. - The total number of share options available for issuance under both the 2012 and 2021 plans as of December 31, 2021, was 129,358,424 shares, equivalent to approximately 11.83% of the company's issued share capital[140]. - The average remaining contractual life of the unexercised share options was approximately 1.40 years as of December 31, 2021, compared to 1.01 years in 2020[140]. - The total number of options exercised during the year was 53,600,000, with a total of 7,855,615 options lapsed[140]. - The company’s directors and key executives held a total of 157,900,000 shares as of December 31, 2021[140]. - The company completed a share swap agreement involving the issuance of 4,000,000 shares of Huaxia Culture, valued at HKD 11,400,000[115]. - The company issued 95,000,000 shares, with a total value of HKD 1,900,000 recorded in issued capital[115]. Corporate Actions - The company completed the sale of 55% equity in Jiangsu Weilai Dongnan Technology Co., Ltd. for a total consideration of RMB 1, effective January 10, 2022[166]. - Following the share consolidation on February 23, 2022, the total number of issued shares was adjusted from 1,093,921,858 shares to 54,696,092 shares[168]. - The company proposed a rights issue on December 15, 2021, offering three rights shares for every two consolidated shares held, which was approved by shareholders on February 21, 2022[169].
未来世界控股(00572) - 2021 - 年度财报