Sales and Revenue Performance - The Group recorded an increase in sales of construction machinery and spare parts, as well as rental income from construction machinery during the year, with an occupancy rate of approximately 85% for rental machineries [9]. - Total revenue for the Year was approximately HK$220 million, maintaining a similar level compared to the previous year [39]. - Sales of construction machinery and spare parts amounted to approximately HK$49 million, an increase from approximately HK$41 million in 2021 [39]. - Rental income from construction machinery generated approximately HK$128 million, up from approximately HK$100 million in 2021, attributed to increased government projects [39]. - The increase in revenue for the financial services business was mainly due to a rise in the value and volume of transactions in securities brokerage [23]. - Revenue from the financial services business was approximately HK$16 million, representing about 7% of the total revenue of the Group, with a segment profit of approximately HK$10 million, a significant improvement from a loss of approximately HK$51 million in the previous year [22]. Financial Services and Investments - The Group's financial services business includes money lending, securities investment, and asset management, among others [19]. - The Group holds licenses for conducting regulated activities under the Securities and Futures Ordinance, including money lending and asset management [22]. - Revenue from money lending, asset management, securities brokerage, commodities, futures, and other financial services decreased by approximately HK$38 million, or 54%, mainly due to a reduction in loans receivables [41]. - The fair value loss on financial assets at fair value through profit or loss (FVTPL) amounted to approximately HK$397 million for the year, with HK$148 million and HK$262 million related to investments in Riverwood and Tisé Opportunities SPC, respectively [47]. - The Group's investment strategy includes a focus on listed equities in the Greater China Region, as well as potential investments in ETFs and U.S. Treasury securities [47]. Economic Environment and Challenges - The macroeconomic environment remained challenging due to the ongoing COVID-19 pandemic, leading to economic recession and the highest unemployment rate in Hong Kong in the last two decades [9]. - The Group implemented precautionary measures to manage the impact of COVID-19, including remote work arrangements and daily COVID-19 testing for employees [16]. - The Group adopted a sound financial policy to navigate the complicated external environment and actively explored new development opportunities [9]. Losses and Financial Performance - The Group recorded a loss of approximately HK$412 million for the Year, compared to a profit of approximately HK$100 million in 2021 [38]. - Other net losses amounted to approximately HK$385 million, a significant increase from HK$20 million in the previous year, mainly driven by a fair value loss of approximately HK$397 million [53]. - The share of results of associates showed a loss of approximately HK$17 million, compared to a gain of approximately HK$169 million in the previous year [60]. Corporate Governance and Management - The Company has a diverse board with members holding significant experience in various sectors, enhancing its governance and strategic direction [122]. - The Board consists of three executive Directors, two non-executive Directors, and four independent non-executive Directors [138]. - The Company has adopted the Model Code for Securities Transactions by Directors, confirming compliance by all Directors during the Year [131]. - The Group is committed to continuously improving its corporate governance practices through periodic reviews to meet CG Code requirements [130]. - The Board focuses on formulating overall strategies, approving annual development plans, and monitoring financial performance [135]. Strategic Initiatives and Future Plans - The Group is committed to streamlining existing businesses and exploring new business opportunities to create returns for shareholders [12]. - The Group aims to expand its client base in money lending and financial services, enhancing corporate financial advisory and asset management services [100]. - The Group is exploring business opportunities in Cambodia, leveraging its strategic location along the "One Belt, One Road" initiative [104]. - The Group plans to implement stringent cost control measures to maintain profitability during economic downturns [98]. Employee and Talent Management - The Group had 127 employees as of March 31, 2022, an increase from 120 employees in the previous year [92]. - The Group has adopted a share award scheme to attract and retain talent among its employees [92]. - All directors have participated in continuous professional development to enhance their knowledge and skills, with training provided throughout the year [162].
昊天国际建投(01341) - 2022 - 年度财报