Financial Performance - The company's IFRS revenue for the year was HKD 115.84 million, a decrease of 64.3% from HKD 324.34 million in the previous fiscal year[20]. - The loss from continuing operations increased from HKD 360.6 million in the previous fiscal year to HKD 550.1 million this year[20]. - The adjusted non-IFRS revenue for the year was HKD 227.56 million, slightly down from HKD 235.09 million in the previous fiscal year[24]. - Revenue from the digital asset and blockchain platform business was HKD 71.48 million, down 74.3% from HKD 277.68 million in the previous fiscal year[23]. - The group reported a total cash amount of HKD 426.9 million as of December 31, 2022, down from HKD 519.8 million in 2021, primarily due to a significant drop in cryptocurrency market value[37]. - The proprietary digital asset balance decreased from HKD 7.210 billion as of December 31, 2021, to HKD 1.583 billion as of December 31, 2022, highlighting the impact of market volatility[37]. - The group reported a total revenue of 21,730,000 for the year, with a significant increase compared to previous periods[152]. - The earnings per share (EPS) for the year was 14.39, reflecting a growth from 8.88 in the previous year[153]. Trading Volume and Market Position - OSL's trading volume increased by 49% year-on-year in 2022, despite a significant overall market decline[12]. - OSL digital asset platform's trading volume increased by 48.9% year-on-year due to a growing customer base and focus on providing a secure platform for institutional and private investors[18]. - The total trading volume for the OSL digital asset platform increased by 48.9% to HKD 455.9 billion from HKD 306.1 billion in the previous fiscal year[27]. - The trading volume for OTC and iRFQ combined increased by 59.0% to HKD 375.5 billion from HKD 236.2 billion in the previous fiscal year[27]. Cost Management and Restructuring - The company achieved a nearly 40% reduction in overall costs through a comprehensive restructuring and major technology upgrades[12]. - The company is reducing its advertising business in Shanghai to reallocate resources and funds towards the development and innovation of its digital asset business[19]. - Total employee costs before capitalization were HKD 314.4 million in FY2022, down from HKD 354.6 million in FY2021, mainly due to reduced share-based payment expenses[34]. - Administrative and other operating expenses increased by 8.2% to HKD 574 million in FY2022, primarily due to investments in digital asset business infrastructure[32]. Technology and Innovation - The focus has shifted entirely towards technology and artificial intelligence within the digital asset sector[11]. - The company aims to leverage advancements in artificial intelligence and modern technology as a key to success in the tech-driven industry[12]. - The company is implementing artificial intelligence tools to automate business processes, resulting in double-digit percentage productivity growth in some operational functions[15]. - The company recognizes the importance of large language models and generative pre-trained transformers in the tech landscape[11]. Regulatory Environment and Compliance - The regulatory environment has created a fair competitive landscape, benefiting licensed companies like BC Technology Group[12]. - The company emphasizes the importance of security and compliance in the evolving digital asset landscape, positioning itself as a reliable choice for financial institutions[19]. - The group’s digital asset trading business is subject to strict regulatory compliance in jurisdictions such as Hong Kong and Singapore, including anti-money laundering requirements[49]. - The group has implemented anti-money laundering policies and procedures during customer onboarding, including ongoing monitoring and reporting[54]. Strategic Growth and Market Expansion - The company is positioned to capitalize on the rapid growth of decentralized finance (DeFi) in the current regulatory environment[12]. - The group plans to leverage the recent regulatory changes in Hong Kong to expand its digital asset platform and capture new market opportunities, particularly with retail investors[36]. - The company is focusing on business expansion plans, having already established a licensed digital asset platform recognized by institutional investors[15]. - The company is exploring opportunities for market expansion and potential acquisitions to drive growth[67][68]. Risk Management - The group maintains a cautious financial risk management approach, avoiding high-risk financial investments or speculative derivatives, with most assets and transactions denominated in RMB, HKD, and USD[42]. - The group has implemented risk management policies to address price volatility in digital assets, regularly reviewing positions based on volatility, holding size, and liquidity[51]. - The company has established a comprehensive risk management framework to identify, assess, manage, and control significant risks[123]. - The internal audit function assists the board and committees in reviewing the effectiveness of the risk management and internal control systems[125]. Corporate Governance - The company has committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[73]. - The board consists of eight directors, including five executive directors and three independent non-executive directors, ensuring a balance of skills and experience[82]. - The company has adopted the corporate governance code as per the Stock Exchange's listing rules, ensuring compliance throughout the year[73]. - The company emphasizes the importance of ethical conduct and compliance with applicable laws and regulations in its operations[76]. Shareholder Communication and Transparency - The company emphasizes the importance of transparency and timely disclosure of financial information to enable shareholders and investors to make informed investment decisions[111]. - The company has established a shareholder communication policy to ensure that shareholders receive comprehensive and timely information regarding financial performance and strategic goals[113]. - The board of directors is committed to maintaining effective communication with shareholders and encourages participation in annual general meetings[112]. - The company conducts regular investor meetings, including earnings briefings and conference calls, to provide updates on performance and accept questions from investors[113]. Employee and Director Compensation - The remuneration policy for directors and senior management is linked to the group's operating performance and individual contributions, approved by shareholders at the annual general meeting[139]. - The salary levels for senior management members range from HKD 500,001 to HKD 4,500,000[95]. - The company has granted stock options and reward shares to key personnel to incentivize their contributions to the long-term development of the digital asset business[190]. - The total expense recognized for share-based payments during the fiscal year was approximately HKD 13,863,000, a decrease from HKD 39,219,000 for the year ending December 31, 2021[184].
OSL集团(00863) - 2022 - 年度财报