Corporate Governance - The Company has established a clear separation of roles between the chairman and chief executive officer, with responsibilities delegated to executive directors and the general manager for day-to-day operations[3]. - The Audit Committee is responsible for reviewing the Company's financial information and ensuring compliance with the Corporate Governance Code[7]. - The Nomination Committee held two meetings during the year to assess the structure and independence of the Board[12]. - The Remuneration Committee recommends remuneration policies and packages based on performance and market conditions[16]. - The Company is committed to good corporate governance, overseeing risk management and internal control systems on an ongoing basis[22]. Risk Management and Internal Controls - The internal control system includes strict access control to confidential information and guidelines for handling such information[30]. - The Company has implemented measures to identify and manage significant risks that may impact performance, including ESG-related risks[25]. - The Group's internal control policies for money lending include ongoing monitoring of credit risk and loan recoverability[142]. - Imagi Lenders has established internal control policies for ongoing monitoring of credit risk associated with its lending operations[111]. Financial Performance - The company reported a net loss attributable to shareholders of approximately HK$11 million for the year under review[67]. - The Group recorded a revenue decrease of approximately 44% for the financial year 2022 compared to the previous year, excluding net realized losses from sales of investments classified as held-for-trading[85]. - The net loss attributable to shareholders for the Year under Review was approximately HK$11 million[86]. - Revenue (excluding net realized losses from sales of investments) decreased by 44% to approximately HK$66.8 million compared to approximately HK$118.2 million in 2021[182]. - The Group's net loss attributable to shareholders for the year was approximately HK$11 million, a decrease of 67% compared to a net loss of approximately HK$33.7 million in the previous year[184]. Business Strategy and Outlook - The company expects substantial improvement in the business environment in Hong Kong and China for 2023 due to the easing of COVID-19 restrictions and regulatory clampdowns[68]. - The management remains optimistic about performance improvements in 2023, driven by a better business environment and reduced interest rate pressures[71]. - The Company plans to persist with its expansion strategy in financial services while proceeding with caution and monitoring market conditions[71]. - The Group's focus on niche customers allows for a tailored credit assessment process rather than a mechanical approach[116]. - The Company aims to attract more clients by enhancing its technology infrastructure and service types through strategic partnerships and acquisitions[103]. Loan and Investment Activities - Total new loan principal issued by the group amounted to HK$182.5 million, generating interest and commitment fee income of approximately HK$16.3 million[72]. - The Group granted new loans totaling approximately HK$182.5 million, with interest income from lending activities around HK$15.8 million, at competitive rates between 4% and 15%[120]. - As of December 31, 2022, outstanding loans receivable amounted to approximately HK$174.6 million, with the largest single loan accounting for about 43% of total receivables[120]. - The Company recognized an impairment provision of approximately HKD 6,900,000 for the outstanding margin loans as of December 31, 2022, based on an independent professional valuation[106]. - The Group invested approximately HK$16.9 million in four movies between 2018 and 2021, with one movie expected to be released in 2024[152]. Market Conditions and Economic Environment - The high interest rate regime is anticipated to top out and reverse in the coming year, potentially benefiting the global economy and financial markets[68]. - The financial markets faced significant pressure in 2022 due to inflation and regulatory clampdowns, but a rebound was observed in November and December[148]. - The management expects the overall market environment to improve in 2023, with reduced pressure from interest rate hikes and COVID-19 restrictions[93]. Business Segments and Contributions - The brokerage and related services business is expected to continue improving and remain a significant contributor to the group's operations and profits[71]. - The brokerage and related services business achieved stable performance despite adverse market conditions, supported by significant investments and a full range of licenses obtained since 2017[93]. - The Company anticipates improvements in the brokerage and related services business performance in 2023, contributing significantly to operations and profitability[93]. - The Group plans to explore acquisitions and strategic alliances with local brokerage firms to enhance service offerings and attract more clients[80]. - The Company will continue to focus on its core Integrated Financial Services business, which has been its primary focus since 2016[124]. Management and Personnel - Mr. Kitchell Osman Bin has over 20 years of experience as a veteran investor in Hong Kong equity markets[196]. - Mr. Kitchell joined the Group as an executive Director in May 2016 and became chairman on October 11, 2021[196]. - Koji Shimazaki has over 20 years of experience in web development, programming, and production quality control[199]. - Koji Shimazaki joined the Group as an executive Director in May 2016[199]. - Employee costs for the year amounted to approximately HK$15.0 million, an increase from approximately HK$13.0 million in 2021[167].
元汇集团(00585) - 2022 - 年度财报