Financial Performance - Revenue from proprietary trading in digital assets was approximately HK$5.0 million, and revenue from trust and custody services was approximately HK$8.7 million, representing a year-on-year increase of approximately 521.4%[12] - Total assets of OKLink Trust's clients increased to approximately HK$280.5 million, up approximately 159.2% from HK$108.2 million over the same period last year[12] - Revenue from digital assets related businesses was approximately HK$13.7 million, with a gross profit of approximately HK$5.4 million[12] - Revenue from foundation and building construction works and ancillary services was approximately HK$207.5 million, an increase of approximately 22% year-on-year[12] - Revenue from construction waste handling services was approximately HK$148.8 million, a decrease of approximately 36% year-on-year[12] - Loss attributable to the owners of the Company for the year was approximately HK$58.1 million, a decrease of approximately 38.1% year-on-year[16] - The Group recorded a revenue of approximately HK$385.6 million for the Year, representing a decrease of approximately 14.9% compared to HK$453.0 million for the corresponding period in 2021[65] - The gross profit of the Group for the Year amounted to approximately HK$84.3 million, representing an increase of approximately 80.9% compared to HK$46.6 million for the corresponding period in 2021[67] - The gross profit margin increased by 11.6 percentage points to 21.9% for the Year from 10.3% for the same period last year[67] - Other income, gains, and losses of the Group amounted to approximately HK$19.2 million, representing an increase of approximately 18.5% compared to HK$16.2 million for the corresponding period in 2021[71] Digital Assets and Blockchain - The Group launched ChainHub, the first panoramic on-chain data analysis tool in Greater China, providing over 10,000 data indicators and seven major thematic data categories including NFT and GameFi[22] - The Group commenced proprietary trading in digital assets and blockchain technology services during the year[28] - The blockchain industry is recognized as a key industry in the digital economy, with the Group planning to optimize and upgrade blockchain-related products[25] - The Group aims to expand its digital asset-related businesses, including proprietary trading, blockchain technology services, and trust and custody services[25] - The Group will continue to monitor regulatory dynamics in the digital assets industry and apply for relevant licenses as needed[25] - The Group's digital assets were used as collateral for borrowings, valued at approximately HK$554.5 million as of March 31, 2022, compared to nil as of March 31, 2021[79] - The Group's risk exposure to price volatility in digital assets is limited to the net balance of each digital asset held, with stablecoins being less volatile compared to ETH and BTC[95] - The Group's quantitative trading strategies for digital assets are subject to market liquidity and system reliability, with potential for both profits and significant losses during extreme market conditions[97] - The Group's proprietary risk management system is designed to address inherent risks in digital asset trading, including errant algorithms and extreme market moves[97] Economic Environment - The Hong Kong economy contracted by about 4.0% year-on-year in the first quarter of 2022 due to the COVID-19 pandemic[12] - The Hong Kong economy contracted by approximately 4.0% year-on-year in Q1 2022 due to the fifth wave of COVID-19 and related prevention measures[102] Corporate Strategy and Management - The Group adjusted its corporate management policy and diversified its development strategies in response to the unpredictable capital market[12] - The Group's business layout has been rationally planned to explore development opportunities under the crisis[12] - The Group aims to gradually expand the scale of its digital asset investment business while controlling investment risks[102] - The Group's efforts in optimizing its business structure are expected to create greater returns for shareholders[102] Customer and Market Dynamics - The Group's top five customers contributed approximately 83.1% of total revenue for the year, with the largest customer accounting for about 38.3%[137] - The Group's revenue contribution from its top five customers decreased slightly from 83.5% in the previous year to 83.1%[138] - The Group's largest customer experienced a decrease in revenue contribution from 51.7% in the previous year to 38.3%[138] - The Group's service contracts are project-based, which may lead to challenges in retaining customers upon contract expiration[137] Legal and Regulatory Risks - The PRC government regulations currently limit foreign ownership in PRC companies providing value-added telecommunication services to 50%[150] - The Ministry of Industry and Information Technology of the PRC issued the MII Notice, which imposes stricter regulations on foreign investments in value-added telecommunications services[150] - The company faces risks that the Contractual Arrangements with Beijing OKG may be deemed non-compliant with PRC laws, potentially leading to nullification or revocation of licenses[152] - The relevant regulatory authorities have broad discretion in dealing with violations, which could include shutting down the company's website or imposing fines[152] Human Resources - As of March 31, 2022, the Group employed a total of 141 staff, down from 193 staff as of March 31, 2021, with total staff costs amounting to approximately HK$132.5 million, an increase from approximately HK$113.3 million in the previous year[105] Shareholder Information - Mr. Tang holds approximately 72.71% of the total issued share capital of the Company through OKC, which represents 3,904,925,001 shares[119] - The Company has a policy that one-third of the Directors shall retire from office by rotation at each annual general meeting[161] - The total number of issued shares of the Company was 5,370,510,000 shares as of March 31, 2022[176] Donations and Social Responsibility - During the Year, the Group made charitable and other donations amounting to approximately HK$869,000, an increase from HK$176,000 in 2021[199] - The Group's charitable donations increased significantly during the Year, reflecting a commitment to social responsibility[199]
欧科云链(01499) - 2022 - 年度财报