Business Strategy and Focus - The company aims to focus on its Investment Management (IM) and Strategic Direct Investment (SDI) businesses, which are expected to provide stable revenue streams and sustainable cash flows[10]. - The company believes that the completion of the sale will allow it to concentrate on its remaining businesses and release internal resources for potential investment opportunities[10]. - The company aims to continue seeking investment opportunities to enhance overall financial resource returns amid uncertain market conditions[29]. - The company completed the sale of its CRMS business for HKD 219.5 million on March 22, 2022, reallocating resources to focus on its IM and SDI businesses[37]. - The company is committed to ensuring that any grants of options do not disproportionately benefit major shareholders or connected persons without proper oversight[120]. Financial Performance - The company's IM service revenue decreased by 49% to HKD 35,272,000 in 2022 from HKD 68,778,000 in 2021[16]. - The total operating expenses reduced by 38% to HKD 53,214,000 in 2022 from HKD 85,938,000 in 2021, primarily due to a decrease in employee benefits expenses[21]. - The company's assets under management (AUM) dropped by 48% to approximately USD 515 million as of December 31, 2022, down from USD 985 million in 2021, reflecting poor fund performance[16]. - The pre-tax loss from continuing operations increased by 40% to HKD 81,661,000 in 2022 compared to HKD 58,409,000 in 2021, mainly due to losses in the SDI segment[22]. - Other income decreased by 54% to HKD 10,611,000 in 2022 from HKD 23,058,000 in 2021, primarily due to the absence of a one-time compensation received in the previous year[20]. Market Outlook - The company anticipates that the macroeconomic uncertainties and volatile market conditions will require skilled investment managers more than ever[6]. - The company is confident that 2023 will provide more return opportunities as value and growth stocks approach normal valuation levels[6]. - The company anticipates a rebound in the Asian stock market in the second half of 2023 if inflation begins to decline and interest rates decrease[14]. - The company expects China's GDP growth to rise to 5.2% in 2023, driven by the reopening of the economy[14]. Employee and Management - The total employee compensation for continuing operations in 2022 was approximately HKD 22,389,000, down from approximately HKD 48,000,000 in 2021[48]. - The company had 30 employees as of December 31, 2022, a significant decrease from 1,979 employees in 2021[47]. - The company relies heavily on the experience and expertise of its executive directors and senior management, which is critical for its success[57]. - All directors participated in continuous professional development training to stay updated on relevant regulations and enhance their skills[163]. Corporate Governance - The company has complied with all provisions of the corporate governance code except for the separation of the roles of the chairman and CEO, which was addressed after a change in leadership[142]. - The board consists of six members, ensuring a balance of skills, experience, and perspectives[145]. - The company has established three board committees, including the audit committee, to assist the board in fulfilling its responsibilities[168]. - The audit committee reviewed the remuneration for external auditors, which included fees for both audit and non-audit services, ensuring no potential adverse impact on the company[172]. Risk Management - The company faces risks related to investment management, including pressure on asset management scale and management fees due to market conditions[58]. - Cybersecurity risks may lead to operational disruptions and financial losses, including regulatory fines and reputational damage[4]. - Market disruptions and liquidity issues could result in significant losses for the fund due to unexpected political or military events[64]. - The company emphasizes compliance with laws and regulations to avoid operational interruptions and maintain good relationships with regulatory bodies[70]. Shareholder Information - The board does not recommend the distribution of a final dividend for the year ended December 31, 2022[82]. - The company has adopted a dividend policy that allows for the declaration of dividends from realized or unrealized profits[82]. - The company has established a share option plan on June 4, 2020, which is effective for 10 years, with approximately 7 years and 2 months remaining[119]. - The total number of shares granted under the share incentive plan as of December 31, 2022, is 334,720,000, which represents 2.91% of the total issued shares of the company[126]. Financial Health - The liquidity ratio improved to 5.93 in 2022, compared to 2.34 in 2021, due to the offset of a loan to a former director against the sale proceeds[34]. - As of December 31, 2022, the company's equity was approximately HKD 729.3 million, down from HKD 775.2 million in 2021[32]. - The company recorded a net loss of approximately HKD 58,367,000 from financial assets measured at fair value through profit or loss in 2022[22]. - The company reported a total cash and deposits balance of approximately HKD 46.6 million as of December 31, 2022, significantly reduced from HKD 159.4 million in 2021[33].
金涌投资(01328) - 2022 - 年度财报