Financial Performance - The company reported a loss attributable to owners of HK$200.38 million in 2021, a 42% increase compared to the previous year[10]. - The loss was primarily due to a HK$117.54 million loss from changes in fair value of financial assets at fair value through profit or loss, contrasting with a gain of HK$140.51 million in the prior year[10]. - Revenue for the year ended December 31, 2021, was HK$272.17 million, a 23% increase from HK$221.76 million in 2020, driven by increases in jewelry sales, rental income, and trading gains[28]. - The profit attributable to owners of the Company for the year was a loss of HK$200,375,000, compared to a loss of HK$140,858,000 in the previous year[86]. - The Group's equity attributable to owners decreased to HK$2,193,442,000 in 2021 from HK$2,368,661,000 in 2020[86]. Segment Performance - The money lending business recorded a segment loss (before taxation) of HK$196.41 million, a 32% increase from the previous year, attributed to a HK$53.57 million increase in the allowance for expected credit losses[12]. - The sale of financial assets business reported a segment loss (before taxation) of HK$53.80 million, compared to a profit of HK$191.81 million in the previous year[11]. - The jewelry products business achieved a segment profit (before taxation) of HK$1.68 million, recovering from a loss of HK$13.10 million the previous year[13]. - The property investment segment loss (before taxation) decreased from HK$49.98 million in 2020 to HK$41.88 million in 2021, primarily due to the absence of a previous year's loss of HK$19.20 million and an increase in rental income of HK$10.56 million[19]. Investment and Financial Strategy - The company expects to adjust its equity securities portfolio and realize equity securities into cash as appropriate in 2022 due to uncertain market conditions[11]. - The Group's financial strategy includes leveraging cash generated from operations and borrowings to fund its activities[60]. - The Group is focused on managing its debt obligations while exploring opportunities for growth and expansion in its core business areas[64]. - The Group's investment strategy included a focus on acquiring undervalued securities in the Hong Kong market[115]. Credit Risk and Allowance for Expected Credit Losses - The allowance for expected credit losses (ECL) on financial assets rose from HK$198,470,000 in 2020 to HK$250,392,000 in 2021, reflecting an increase of HK$53,570,000 in loan receivables[44]. - The total allowance for ECL on loan receivables was HK$251,002,000, reflecting a HK$53,570,000 increase compared to the previous year[166]. - The Group will continue to closely monitor the performance of its loan portfolio, especially in light of the impacts from the COVID-19 pandemic[172]. - The Group's expected credit loss (ECL) allowance for loan receivables increased significantly from HK$123,727,000 to HK$262,391,000 year-on-year due to the transfer of loans to Stage 3 (credit impairment) and the impact of the COVID-19 pandemic on clients' financial conditions[174][175]. Property Investment and Development - The development of the second and third phases of the 580 Chinese acre land in Beijing is underway, with 279 residential serviced apartments and two office buildings planned[19]. - The Group plans to enhance its property investment business in 2022 to ensure the timely completion of the development phases in Beijing[19]. - The fair value of the investment property portion of the Shun Tak Property increased from HK$140,000,000 at December 31, 2020, to HK$164,500,000 at December 31, 2021, resulting in a gain of HK$3,800,000[198]. - The office leasing market in Hong Kong faced challenges, impacting the Group's rental income from the investment property portion[199]. Cash Flow and Borrowings - The Group's cash and cash equivalents amounted to HK$43,571,000 as of December 31, 2021, down from HK$54,125,000 in 2020[58]. - Outstanding borrowings as of December 31, 2021, were HK$625,774,000, a decrease from HK$668,080,000 in 2020[62]. - The Group issued HK$200,000,000 of 13% guaranteed secured notes due in 2022, secured by shares in a wholly-owned subsidiary and personal guarantees from executive directors[62]. Future Plans and Initiatives - The company plans to launch a business-to-business sales portal in Q2 2022 to enhance sales and marketing capabilities[13]. - The Group expects to launch its business-to-business sales portal in the second quarter of 2022, which is anticipated to enhance sales and marketing capabilities[180][183].
永恒策略(00764) - 2021 - 年度财报