Economic Performance - In 2021, Hong Kong's economy expanded by 6.4% year-on-year, supported by a stable pandemic situation starting in May[7]. - China's GDP growth reached 8.1% in 2021, exceeding market expectations despite challenges from the Omicron variant and a distressed real estate sector[8]. - Hong Kong's real GDP expanded by 6.4% in 2021, reversing declines from the previous two years[19]. - The global economy faces uncertainties from COVID-19 variants and geopolitical risks, which may impact growth in 2022[9]. - The global economy is projected to grow by 4.1% in 2022, with China targeting a 5.5% economic growth rate for the same year[46]. - Hong Kong's economy is expected to grow by 2.0% to 3.5% in real terms for the year, supported by fiscal measures from the government[47]. Market Performance - The Hang Seng Index fell by 14% over the year, making Hong Kong one of the worst-performing equity markets among major markets[7]. - The Hang Seng Index fell by 14.1% in 2021, with the Hang Seng Technology Index dropping by 34.8% due to regulatory crackdowns[20]. - The total funds raised in Hong Kong's securities market reached HK$770.7 billion in 2021, representing a year-on-year increase of 3.0%[20]. - The average daily turnover in Hong Kong's securities market was HK$166.7 billion in 2021, reflecting a year-on-year increase of 29.0%[20]. Business Strategy and Development - The Group plans to adopt a dual-track business strategy to enhance financial operations in Hong Kong and expand digital assets and internet gaming in China[11]. - The Group aims to improve service quality and provide stable financial services to customers to strengthen its market position[11]. - The Group aims to strengthen its financial services in Hong Kong while expanding into the digital assets and internet gaming sectors to enhance business flexibility and diversify revenue sources[13]. - The Group has launched a digital assets sales and marketing business to target the internet generation Z market, aiming to diversify its business and expand income[23]. - The Group plans to allocate more resources to develop the digital assets market through marketing cooperation and IP collaboration, expecting new business to start contributing to revenue in the current financial year[51]. - The Group aims to enhance its presence in the digital assets industry to capture potential growth and drive synergies between its internet business and other segments[53]. - The Group will continue to explore business opportunities in the PRC market and seek investment opportunities in key sectors with positive growth potential[52]. Financial Performance - For the year ended December 31, 2021, the Group's consolidated revenue from continuing operations was approximately HK$90.6 million, an increase of about 32% compared to approximately HK$68.4 million in 2020[58]. - The Group recorded a consolidated profit attributable to shareholders of approximately HK$15.2 million for the year ended December 31, 2021, compared to a loss of approximately HK$31.7 million for the same period in 2020[58]. - The improvement in the Group's consolidated results was mainly due to an increase in revenue of approximately HK$22.2 million and a reduction of impairment loss on accounts receivable of approximately HK$23.7 million[59]. - Total revenue for the year ended December 31, 2021, was approximately HK$90.6 million, a 32.4% increase from HK$68.4 million in 2020[67]. - Brokerage and financing segment revenue increased by about 40% to approximately HK$82.8 million, accounting for 92% of the Group's total revenue[69]. - The Group recorded a profit before taxation of HK$39.6 million, compared to a loss of HK$34.1 million in the previous year[68]. - The Group's total segment profit was HK$77.5 million, significantly up from HK$25.9 million in 2020[68]. - The Group's profit for the year from continuing operations was HK$28.8 million, a turnaround from a loss of HK$35.8 million in 2020[68]. Investments and Acquisitions - The company is focusing on diversifying its revenue base through digital asset-related business development[25]. - The company has made significant investments in joint ventures and acquisitions to expand its market presence and asset portfolio[26][28][35]. - The company plans to establish a joint venture securities company in Guangxi, China, with an investment of RMB 445 million (approximately HK$ 545 million), representing 44.5% equity interest[26]. - The company entered into a series of memoranda of understanding to acquire a total of 32% equity interest in China Bloom International Limited for a total cash consideration of HK$ 19.6 million, but the acquisition will not proceed[32][33]. - The company acquired 5,158,000 shares of HG Semiconductor Limited for approximately HK$ 38.3 million, representing about 0.94% of the total shares issued as of October 7, 2021[35]. - The Group made a net purchase in securities investment of approximately HK$186.3 million in 2021, significantly higher than HK$66.4 million in 2020[94]. Risk Management and Governance - The Group has established various policies to manage and monitor risks related to the environment, employment, and community[193]. - The Group's management of significant issues affecting operations includes environmental, social, and governance matters[185]. - The Group prioritizes stakeholders based on its strategic plan and business initiatives to develop mutually beneficial relationships[198]. - The Group's commitment to responsible operations is reflected in its adherence to applicable legal requirements and sustainability principles[193]. Management and Team - The company has a diverse board with expertise in finance, corporate strategy, and industry operations[169]. - The management team includes members with advanced degrees in business administration and risk management[164][166]. - The company is focused on leveraging its management's extensive industry connections for growth[165]. - The board includes independent directors with significant experience in various sectors, enhancing governance[169][173]. Sustainability Initiatives - The reporting period for the sustainability initiatives was from January 1, 2021, to December 31, 2021[190]. - The Group has implemented measures to optimize and improve disclosure requirements in the Environmental, Social and Governance Report[187]. - The Environmental, Social and Governance Report is available in both Chinese and English on the Stock Exchange's website[188]. - The sustainability strategy incorporates environmental, social, and governance considerations to enhance long-term competitiveness[193].
汇盈控股(00821) - 2021 - 年度财报