Financial Performance - For the year ended March 31, 2022, the Group's revenue was approximately HK$354.8 million, a decrease of 6.9% from HK$381.3 million in the previous year[8]. - Profit attributable to owners of the Company was approximately HK$466.9 million, significantly up from HK$213.2 million in 2021, primarily due to gains on disposal of subsidiaries and reduced finance costs[9]. - Basic earnings per share increased to HK19 cents from HK9 cents in the previous year, reflecting the rise in profit[10]. - The decrease in revenue was mainly due to lower underwriting and placing commissions and a decrease in interest income from margin financing[8]. - The broking business reported a loss of approximately HK$0.7 million for the year ended March 31, 2022, a decrease of 103.2% compared to a profit of approximately HK$21.7 million in 2021[22]. - Revenue from broking decreased by 15.0% to approximately HK$62.7 million, down from HK$73.8 million in the previous financial year[22]. - Total interest income from securities margin financing dropped by 6.4% to approximately HK$287.1 million, compared to HK$306.6 million in 2021[22]. - The Group recorded net impairment losses on accounts receivable from margin clients of HK$130.1 million, up from HK$55.7 million in 2021[9]. Market Conditions - The average daily turnover on the Main Board and GEM for the year was approximately HK$147.0 billion, a decrease of 5.2% compared to HK$155.1 billion in the prior financial period[18]. - The Hang Seng Index closed at 21,996 points at the end of March 2022, down from 28,378 points at the end of March 2021, indicating a significant market decline[18]. - The Group's performance was influenced by external factors such as the Russo-Ukrainian War and changes in U.S. Federal Reserve interest rate policies[18]. Asset Management and Financial Position - As of 31 March 2022, equity attributable to owners of the Company was approximately HK$4,338.0 million, representing an increase of approximately HK$317.0 million or 7.9% from the previous year[31]. - The Group's net current assets amounted to HK$4,019.2 million, with a current ratio of 8.56 times, an increase from 6.29 times in 2021, due to higher bank balances and lower accounts payable[31]. - Bank balances and cash on hand increased to HK$1,226.6 million from HK$328.2 million, primarily due to cash inflows from accounts receivable repayments and subsidiary disposals[31]. - The Group had no bank borrowings as of 31 March 2022, with unutilized banking facilities of approximately HK$530 million[31]. Corporate Governance - The Company has complied with the Corporate Governance Code, meeting the requirements for independent non-executive directors[76]. - The Board comprises six members, with half being non-executive and independent, ensuring a balance of skills and experience[75]. - The Company emphasizes good corporate governance practices to maintain and promote investor confidence[63]. - The Board has established three committees to delegate various responsibilities, enhancing operational efficiency[74]. - The Company has adopted a Model Code for Securities Transactions, and all Directors confirmed compliance with this code during the year[109]. Strategic Direction and Management - The Company plans to continue monitoring market conditions and adjusting strategies accordingly to navigate the evolving financial landscape[15]. - Management remains cautiously optimistic about future business development and plans to continue recruiting and training financial talents to provide high-quality services[28]. - The Group is focused on expanding its securities and futures margin financing businesses, leveraging its experienced management team[53]. - The management team has extensive experience in the financial industry, contributing to the Group's strategic direction and operational success[59]. Risk Management - The Group's risk management and internal control systems are designed to provide reasonable assurance against material misstatement or loss[172]. - The Group has implemented a fair disclosure policy to ensure transparency in communications with the public[176]. - The Group's senior management is responsible for maintaining and reviewing the effectiveness of the risk control systems to minimize operational risks[174]. Employee and Director Information - The total remuneration cost for employees of the Group for the year was HK$24.5 million, an increase from HK$22.0 million in 2021[34]. - The Group had 76 full-time employees as of 31 March 2022, compared to 73 in 2021[34]. - The Company Secretary is responsible for advising the Board on corporate governance matters and has complied with all required qualifications[176]. Dividend and Shareholder Information - The Directors recommended a final dividend of HK3 cents per share, leading to total dividends of HK6 cents per share for the financial year[36]. - The final dividend will be payable on or about 8 September 2022 to shareholders registered by 2 September 2022[36]. - Shareholders holding at least one-tenth of the paid-up capital have the right to requisition an extraordinary general meeting[178].
结好金融(01469) - 2022 - 年度财报