Financial Performance - The company reported a loss attributable to owners of HK$272.77 million in 2022, a 36% increase compared to the previous year[12]. - Total revenue for the Group decreased by 43% to HK$156,103,000 in 2022 from HK$272,165,000 in 2021, mainly due to a trading loss of HK$9,850,000 and a decrease in interest income of HK$35,940,000[28]. - The loss attributable to owners of the Company for the year ended December 31, 2022, was HK$272,772,000, a 36% increase from HK$200,375,000 in 2021, primarily due to the absence of a one-off gain from the disposal of an associate[29]. - The Group shared a loss of HK$17.70 million from investments in associates in 2022, a 9% decrease compared to the previous year, attributed to improved financial performance of an associate[22]. - The Group recorded a tax credit of HK$28,839,000 for the year ended December 31, 2022, resulting from various deferred tax adjustments[46]. Business Segments Performance - The sale of financial assets business recorded a segment loss (before taxation) of HK$82.15 million, a 53% increase from last year[13]. - The money lending business showed a segment loss (before tax) of HK$148.85 million, but this represented a 24% improvement compared to the previous year[14]. - The jewelry products business reported a segment profit (before taxation) of HK$1.59 million, a 5% decrease due to a slowdown in sales orders[18]. - The property investment business achieved a segment profit (before taxation) of HK$13.32 million, a turnaround from a segment loss of HK$41.88 million in 2021[18]. Impairments and Losses - The impairment loss on goodwill was recorded at HK$28.80 million in 2022[12]. - A loss of HK$69,898,000 was recorded from the change in fair value of financial assets at FVTPL at the end of the reporting period[37]. - An impairment loss of HK$28,802,000 was recognized for goodwill related to the acquisition of Smart Title Limited[38]. Revenue and Profit Margins - The gross profit from the jewelry product business increased by 6% to HK$11,215,000 in 2022, with a gross profit margin rising from 12% to 14%[30]. - The gross profit for the property investment business increased by 4% to HK$19,660,000 in 2022, with the gross profit margin increasing from 50% to 52%[34]. - The jewelry products business generated revenue of HK$82,397,000 for the year ended December 31, 2022, a decrease of 9% from HK$90,764,000 in the previous year[129]. Cash Flow and Financial Position - As of December 31, 2022, the Group's cash and cash equivalents amounted to HK$34,765,000, a decrease from HK$43,571,000 as of December 31, 2021[52]. - Outstanding borrowings as of December 31, 2022, were HK$664,809,000, up from HK$625,774,000 as of December 31, 2021[52]. - The gearing ratio increased to 37% as of December 31, 2022, compared to 29% as of December 31, 2021[59]. - The Group's net current liabilities were HK$241,897,000 as of December 31, 2022, compared to net current assets of HK$148,728,000 as of December 31, 2021[60]. Strategic Plans and Future Outlook - The company plans to enhance marketing and leasing activities in 2023 to achieve a high occupancy rate for properties on the Subject Land[18]. - The company aims to closely monitor the performance of its loan portfolio and take active actions for collecting problem loans in 2023[14]. - The company will adjust its equity securities portfolio and realize equity securities into cash as appropriate in 2023 due to a challenging macroeconomic environment[13]. - The Group expects interest income from its money lending business in 2023 to remain the same as in 2022[175]. Risks and Challenges - The company acknowledges the principal risks including strategic risk, economic risk, and credit risk that may impact financial conditions and future performance[199]. - Economic risk includes potential downturns affecting performance through increased bad debts and lower asset values[200]. - The global macroeconomic environment remains challenging in 2023 due to high inflation and ongoing geopolitical tensions[173]. Audit and Compliance - The independent auditors expressed a qualified opinion on the Group's consolidated financial statements for the year ended December 31, 2022, related to the share of results of associates and other comprehensive expenses[184]. - The audit qualification from the previous year continues to affect the comparability of the current year's figures and the corresponding figures[189]. - The audit committee discussed the audit qualification with HLB during a meeting held on March 30, 2023[195].
永恒策略(00764) - 2022 - 年度财报