Financial Performance - The company recorded a revenue decline of 42% to HKD 24,820,000 in the fiscal year 2021, down from HKD 42,449,000 in 2020[12] - The company recorded a loss attributable to shareholders of HKD 29,371,000, compared to a profit of HKD 8,519,000 in 2020[12] - Basic loss per share was HKD 0.56, compared to basic earnings of HKD 0.16 per share in the previous year[12] - The oil exploration and production segment incurred a loss of HKD 4,112,000, compared to a loss of HKD 2,647,000 in the previous year[11] - The lending business reported a profit of HKD 17,440,000, down from HKD 29,518,000 in 2020[11] - The oil exploration and production segment experienced an 87% drop in revenue to HKD 1,847,000, down from HKD 14,097,000 in the previous year[24] - The company incurred a loss attributable to shareholders of HKD 29,371,000, compared to a profit of HKD 8,519,000 in 2020, primarily due to an expected credit loss provision of HKD 49,247,000[22] Investment and Business Development - The company invested over HKD 43,600,000 in solar power projects and committed to invest over HKD 34,300,000 in 2022[11] - The company aims to diversify its energy portfolio by investing in renewable energy projects, including solar power, under the Feed-in Tariff Scheme initiated by the Hong Kong government[15] - The company has established a cooperation framework agreement with a solar solutions provider to invest in solar power projects under the Feed-in Tariff Scheme[22] - The company is actively seeking to acquire Canadian oil field projects, with a conditional asset purchase agreement valued at CAD 22,500,000 (approximately HKD 138,375,000) already established[10] - The company has entered into a conditional asset purchase agreement to acquire oil assets in Alberta, Canada, for an initial consideration of CAD 22,500,000 (approximately HKD 138,375,000)[21] Credit and Risk Management - The company recorded an expected credit loss provision of HKD 49,247,000 for debt instruments held at year-end[12] - The expected credit loss measurement is based on default probability, loss given default, and exposure at default[31] - The group emphasizes the importance of thorough credit assessments and ongoing monitoring in its lending practices to mitigate risks[50] - The company maintained a cautious approach in granting new loans due to the current economic conditions in Hong Kong[34] - The credit risk of certain debt instruments has increased due to defaults on interest and principal payments, leading to a downgrade in credit ratings[101] Operational Challenges - The company plans to continue developing its oil and solar businesses despite uncertainties arising from the Omicron variant, geopolitical tensions, and fluctuations in international oil and gas prices[16] - The solar energy business faces inherent risks such as mechanical failures and adverse weather conditions, which could disrupt operations and negatively impact financial performance[122] - The competitive environment in the lending business has put pressure on revenue and profitability, prompting the group to focus on expanding market share and enhancing competitiveness[121] Corporate Governance - The company’s board of directors includes independent non-executive directors, ensuring corporate governance compliance[153] - The company has complied with all applicable provisions of the corporate governance code during the year, except for certain deviations due to the vacancy of the chairman and CEO positions[180] - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring a balance of skills and experience[186] - The Nomination Committee consists of three independent non-executive directors, with a focus on enhancing the management through the selection of potential directors based on their qualifications and experience[196] Financial Assets and Investments - The group recorded a net gain of HKD 7,870,000 from financial assets measured at fair value through profit or loss in the fiscal year 2021, compared to a loss of HKD 9,183,000 in 2020[54] - The group's debt instruments measured at fair value through other comprehensive income had a value of HKD 78,396,000 as of December 31, 2021, down from HKD 132,198,000 in 2020[100] - The total income from debt instruments measured at fair value through other comprehensive income was HKD 8,710,000 in 2021, compared to HKD 10,142,000 in 2020[100] - The group sold most of its equity securities investments during the fiscal year 2021, reflecting a cautious approach to market volatility[54] Employee and Operational Metrics - The group had a total of 21 employees as of December 31, 2021, down from 30 in 2020, with employee costs amounting to HKD 9,799,000, a decrease of HKD 4,415,000 compared to HKD 14,214,000 in 2020[118] - The company aims to provide loans to borrowers with good credit records and sufficient collateral[34] - The group’s financial resources are deemed sufficient to meet ongoing operational needs, supported by liquid assets[111] Revenue Sources and Customer Concentration - The company reported a total revenue from its top five customers accounting for approximately 43% of total revenue, with the largest customer contributing about 13%[151] - The company’s major suppliers accounted for 100% of total procurement, with the largest supplier representing 91%[151]
长盈集团(控股)(00689) - 2021 - 年度财报