Financial Performance - Total revenue for the year ended September 30, 2021, decreased to HK$676.8 million, down 26.2% from HK$917.4 million in 2020[10] - Financing revenue was HK$548.4 million, a decline of 29.5% compared to HK$779.2 million in the previous year[11] - Net loss attributable to owners of the Company was HK$576.1 million, an improvement from a loss of HK$689.7 million in 2020[14] - Basic loss per share improved to HK8.55 cents from HK10.23 cents in the prior year[11] - The Group's financing segment revenue was HK$548.4 million, down from HK$779.2 million in 2020, accounting for 81.0% of total revenue[22] - Revenue from brokerage services decreased to HK$99.3 million from HK$115.6 million in 2020, representing 14.7% of total revenue[25] - The placing and underwriting segment's revenue increased to HK$16.3 million from HK$13.4 million in 2020, accounting for 2.4% of total revenue[29] - Corporate finance segment revenue rose to HK$12.7 million from HK$9.1 million in 2020, making up 1.9% of total revenue[31] Impairment and Risk Management - Impairment allowances for margin loans and other loans decreased to HK$939.3 million from HK$1,327.3 million in 2020, reflecting a reduction of 29.4%[14] - An impairment of HK$939.3 million was recognized during the year, down from HK$1,327.3 million in 2020, primarily related to margin clients and borrowers[51][54] - The net provision for impairment of accounts receivable from margin financing amounted to approximately HK$659 million, with eleven advances assessed as credit-impaired totaling approximately HK$1,492 million[51][57] - The total gross carrying amount of loans and advances assessed as credit-impaired stage was approximately HK$259 million, with an impairment provision of about HK$238 million recognized during the year[60] - The total net impairment allowance for loans and advances was approximately HK$280 million[61] - The Group will actively review its loan portfolio and receivables to mitigate default risks amid an uncertain economic outlook[39] - The Group's proactive credit risk management includes tightening loan approval procedures and adjusting interest rates and loan-to-value ratios[22] Market Conditions and Outlook - The overall global economic environment improved, but regional capital market development was hindered by geopolitical tensions and credit crises among major property developers[15] - The Company faced a tough business operating environment, leading to a significant revenue decrease[14] - Future outlook remains cautious due to ongoing geopolitical issues and market volatility[15] - The economic outlook remains gloomy with market instability expected to persist, prompting the Group to review its loan portfolio and conduct comprehensive collateral assessments[38] - The Group will adopt a prudent approach to mitigate risks while seeking opportunities for steady business development[38] Corporate Governance and Management - Daisy Yeung has over 25 years of management experience in the financial industry, focusing on corporate strategy and business development[75] - Louisa Choi has over 23 years of experience in the finance industry, covering securities, futures, and corporate finance[80] - Pearl Chan has more than 20 years of experience in corporate finance and was previously a practicing lawyer in Hong Kong[81] - The Board includes independent non-executive directors with extensive experience in banking, finance, and corporate governance[85][86][87] - The Company confirmed that all Independent Non-executive Directors are independent as per Rule 3.13 of the Listing Rules[186] Shareholder Information - The Company's reserves available for distribution to Shareholders as of September 30, 2021, amounted to approximately HK$101.9 million and HK$442.1 million in accumulated loss[98] - As of September 30, 2021, Ms. Daisy Yeung held a total of 2,879,521,438 shares, representing approximately 42.72% of the issued voting shares[120] - Ms. Choi Suk Hing, Louisa, and Ms. Pearl Chan held 4,680,000 shares (0.07%) and 2,925,000 shares (0.04%) respectively[120] - The aggregate turnover from the Group's five largest customers accounted for 18% of total turnover, an increase from 14% in 2020[111] - The largest customer contributed 4% to the Group's total turnover, down from 5% in 2020[111] Related Party Transactions - The company has a continuing connected transaction relationship with Emperor International, controlled by a private discretionary trust established by Dr. Albert Yeung[155] - Ms. Daisy Yeung, a director, has a deemed interest in the transactions due to her status as an eligible beneficiary of the trust controlling Emperor International[155] - The financial services agreement with AY Holdings is effective from October 1, 2018, to September 30, 2021, providing brokerage, wealth management, and financial advisory services[158] - The total commission, brokerage, fees, and interest income from listed members under AY Holdings for the year amounted to HK$39,000[161] - The financial advisory fee from the listed members of the Emperor Group was HK$2,730,000 for the year[161] Employee and Director Remuneration - The emoluments of the Directors are determined by the Board based on a written remuneration policy aligned with business strategy and shareholder interests[187] - The remuneration package for employees includes basic salaries, discretionary bonuses, and competitive fringe benefits[188] - The Group had 75 account executives and 130 employees as of September 30, 2021, with total staff costs of approximately HK$77.9 million[72] Financial Position - As of September 30, 2021, the Group's current assets were HK$6,106.3 million, down from HK$9,326.0 million in 2020, while current liabilities decreased to HK$2,942.3 million from HK$4,582.6 million[42][45] - The total carrying amount of the Company's outstanding HK$ bonds was approximately HK$499.1 million, a decrease from HK$1,394.6 million in 2020, with a coupon interest rate of 5.25% per annum[43][46] - The Group's total borrowings, excluding IPO financing, decreased to HK$869.1 million from HK$1,394.6 million, resulting in a reduced gearing ratio of 22.6% compared to 31.5% in 2020[44][46] Charitable Contributions - The Group made charitable donations amounting to approximately HK$27,000 during the Year[196] Auditor and Compliance - The auditor Deloitte Touche Tohmatsu will retire and offer itself for re-appointment at the 2022 AGM[197] - The Group's auditor issued an unqualified letter regarding the disclosed continuing connected transactions[183] - The Company has complied with the disclosure requirements under Chapter 14A of the Listing Rules regarding related party transactions[183] - There was sufficient public float of at least 25% of the Company's issued Shares as required under the Listing Rules[195]
英皇资本(00717) - 2021 - 年度财报