Financial Performance - The Group recorded a small profit in 2022, benefiting from synergies from the acquisitions of Morton Securities Limited and Morgan Finance Limited [26]. - The company recorded a slight profit in 2022, attributed to the synergies from the acquisition of Wan Ki Securities Limited and Wan Ki Finance Limited [29]. - Profit for the year was approximately HK$5.4 million, compared to HK$1.1 million in the previous year, indicating a significant increase in profitability [105]. - The Group's revenue for the year ended December 31, 2022, was approximately HK$76.7 million, an increase from HK$59.5 million in 2021, representing a growth of 28.6% [104]. - Revenue from corporate finance advisory services was approximately HK$47.2 million, up from HK$36.7 million in 2021, reflecting a growth of 28.6% [89]. - Revenue from asset management services was approximately HK$15.7 million, down from HK$18.3 million in 2021, a decrease of 14.2% [92]. - Revenue from securities broking and related services was approximately HK$2.8 million, down from HK$4.5 million in 2021, a decline of 37.8% [93]. - Revenue from money lending and related business was approximately HK$11.0 million, as this segment was newly established in 2022 [96]. - The Group's basic earnings per share for the current reporting period was HK0.47 cents, compared to HK0.10 cents in 2021, marking a substantial increase of 370% [106]. - The Group's return on equity attributable to owners of the Company was 1.1%, up from 0.2% in the previous year [104]. Acquisitions and Business Expansion - The Group completed the acquisition of a money lender operation in 2022 at a nominal consideration, expanding its loan portfolio [17]. - The Group completed the acquisition of Morgan Finance on 1 March 2022, which holds a money lenders license to operate in Hong Kong [83]. - The Group completed the acquisition of all issued shares of Wanji Finance for approximately HK$2.178 million on March 1, 2022 [142]. - The acquisition of two mortgage loan portfolios was completed on April 26, 2022, for an aggregated consideration of approximately HK$42.8 million [137]. - The acquisition of Morgan Finance in March 2022 enhances the Group's capability to offer comprehensive financial services [161]. - The Group acquired Wanji Financial in March 2022 to enhance its capabilities and provide more comprehensive financial services to existing and new clients [165]. Challenges and Outlook - The Group anticipates challenges due to ongoing tensions between China and the USA, affecting takeover activities and funding availability [26]. - The ongoing tensions in US-China relations and limited cross-border funding are expected to challenge future acquisition interests [29]. - The Group's management emphasizes the importance of staff dedication and professionalism in overcoming future challenges [26]. - The Group is well-prepared to face various challenges due to its competitive advantages and the dedication of its employees, alongside the global success in COVID-19 vaccinations [29]. Governance and Management - The Board of Directors does not recommend the payment of a dividend for the year ended December 31, 2022 [18]. - The upcoming annual general meeting is scheduled for May 30, 2023, with the register of members closed from May 24 to May 30, 2023 [19]. - The Group's future business outlook will be detailed in the "Management Discussion and Analysis" section following the Chairman's statement [25]. - The Chairman expresses appreciation for the efforts of the staff and the support from directors and shareholders [27]. Employee and Operational Insights - The Group's total employee benefit expense increased to HK$23.8 million from HK$17.8 million in 2021, reflecting a rise of 33.9% [104]. - The Group's workforce consisted of 28 employees as of December 31, 2022, a decrease from 29 in 2021 [146]. - Employee benefit expenses increased by approximately HK$6.0 million, or 34.2%, to approximately HK$23.8 million, mainly due to an increase in staff bonuses [113]. Revenue Breakdown - Revenue from corporate finance advisory and related services for the year ended 31 December 2022 was approximately HK$47.2 million, an increase of 28% from approximately HK$36.7 million in 2021 [85]. - The Group's charitable donations during the year amounted to approximately HK$5,000, a decrease from approximately HK$99,000 in 2021 [181]. - The top five customers accounted for approximately 57.9% of the Group's revenue in 2022, down from 65.6% in 2021, with the largest customer contributing approximately 20.5% of the revenue [182]. Financial Position - The group had cash and cash equivalents of approximately HK$91.3 million as of December 31, 2022, compared to approximately HK$99.0 million in 2021 [121]. - Total assets as of December 31, 2022, were approximately HK$655.3 million, down from approximately HK$679.1 million in 2021 [124]. - The group had no bank and other borrowings, resulting in a gearing ratio of 0% [123]. - The Group had no bank loans or other borrowings as of December 31, 2022, and December 31, 2021 [198]. Management Team Experience - Mr. Lam has over 16 years of experience in asset management and corporate finance [52]. - Ms. Li has over 20 years of experience in corporate finance and joined Yu Ming in October 2007 [53]. - Mr. Chan has over 20 years of experience in finance and accounting and is currently an independent non-executive director of Tongfang Kontafarma Holdings Limited [59]. - Mr. Chan served as the chief financial officer of Coolpoint Energy Limited from December 2009 to August 2010 [60]. - Mr. Chan was promoted to chief financial officer of NTEEP in September 2008, which was privatized on November 13, 2009 [61]. - Mr. Chan is a certified public accountant and a chartered financial analyst [63]. - Ms. Li is also an independent non-executive director of Fufeng Group Limited effective from April 1, 2022 [54]. - Mr. Lam is responsible for formulating investment ideas and identifying investment opportunities in both listed and unlisted securities [51]. - Ms. Li is involved in the provision of asset management services by Yu Ming [53]. - Mr. Chan is the chairman of the audit committee and a member of the remuneration and nomination committees of the Company [59]. Regulatory and Compliance - The Group's operations are primarily conducted through subsidiaries licensed by the Securities and Futures Commission in Hong Kong [171]. - Yu Ming Investment Management Limited is licensed for Type 1, Type 4, Type 6, and Type 9 regulated activities under the Securities and Futures Ordinance [81]. - Morton Securities is a licensed securities dealer and an Exchange Participant of The Stock Exchange of Hong Kong Limited [82]. - The corporate finance advisory services included three cases of resumption of trading of Main Board listed companies and two chain principle confirmations under the Takeovers Code [84]. - The Group continues to seek opportunities to assist clients in resolving business disputes and regulatory issues [165]. Environmental and Social Responsibility - The Group's environmental policies and performance are detailed in the Environmental, Social and Governance Report [170]. - The Group's financial performance and position are outlined in the consolidated financial statements from pages 72 to 167 of the Annual Report [184]. - The Company's share premium account is distributable to shareholders provided it can pay its debts as they fall due in the ordinary course of business [200].
大禹金融(01073) - 2022 - 年度财报