Financial Performance - The Group recorded a revenue of approximately HK$356.4 million for the year, with a profit attributable to owners of approximately HK$43.5 million, compared to a loss of HK$58.1 million in the previous year, marking a significant turnaround[17]. - The Group achieved revenue of approximately HK$356.4 million, with a profit attributable to shareholders of approximately HK$43.5 million, compared to a loss of HK$58.1 million in the same period last year, marking a turnaround to profitability[20]. - Gross profit for the Year amounted to approximately HK$155.2 million, an increase of approximately 84.1% compared to HK$84.3 million for the same period in 2022[75]. - The gross profit margin increased by 21.6 percentage points to approximately 43.5% for the Year from approximately 21.9% for the same period last year[75]. - The Group recorded a net profit attributable to the owners of the Company of approximately HK$43.5 million, compared to a loss of approximately HK$58.1 million for the corresponding period in 2022[86]. Revenue Breakdown - Revenue from digital assets related business was approximately HK$134.4 million, with a gross profit of approximately HK$92.8 million, representing a year-on-year increase of 1,618.5% and a gross profit margin of 69.0%, up 29.6 percentage points year-on-year[18]. - Revenue from proprietary trading in digital assets amounted to approximately HK$130.1 million, reflecting a growth of 2,525.5% compared to approximately HK$5 million in the same period of 2022[18]. - Revenue from technical services increased to approximately HK$34.4 million, a 71.1% year-on-year growth, with gross profit rising 160% to approximately HK$19.5 million[19]. - Revenue from construction waste handling services was approximately HK$9.5 million, a decrease of approximately HK$139.3 million year-on-year, while revenue from foundation and building construction works was approximately HK$179.3 million, down approximately 13.6%[23]. - Revenue from trust and custody services decreased to approximately HK$4.4 million, down about 49.4% from approximately HK$8.7 million in the same period of 2022[59]. Digital Assets and Trading - The market value of the Group's digital assets increased to approximately HK$649.5 million as of March 31, 2023, compared to approximately HK$560.1 million in 2022[53]. - The Group held approximately HK$649.5 million in digital assets as of March 31, 2023, with stablecoins, Bitcoin, and Ethereum representing significant portions of the total assets[111]. - The fair values of the stablecoins, Ethereum, and Bitcoin held by the Group were approximately HK$349.1 million, HK$88.2 million, and HK$113.5 million, respectively, accounting for approximately 31.6%, 8.0%, and 10.3% of the Group's total assets[111]. - The Group's proprietary trading in digital assets began in January 2022, utilizing quantitative trading strategies that are subject to market liquidity and system reliability risks[117][120]. - The Group's investment performance in digital assets is vulnerable to extreme market conditions, which could lead to substantial mark-to-market losses that may not recover if stop-loss mechanisms are triggered[117][120]. Operational Developments - OKLink Fintech Limited has developed a plan for on-chain AML and KYT businesses in response to the new licensing regime for virtual asset service providers in Hong Kong[19]. - The Group's product upgrade includes a Web3 one-stop data analysis platform, covering over 100 blockchains and containing around 3 billion address tags[19]. - The Group completed 5 projects during the year with a total contract value of approximately HK$784.0 million[50]. - The Group received multiple industry awards, including the "Intelligent Police Service Innovation Award" and recognition as a "2022 Global Blockchain Innovative Application Demonstration Case," highlighting its advancements in technological innovation[24]. - The Group's proprietary risk management system continuously monitors trading strategies and system performance to prevent significant losses[119][121]. Market Outlook and Strategy - The company is optimistic about the future development of digital assets and the Web3 industry, aiming to explore long-term business development opportunities[25]. - The Group plans to continuously assess and adjust its business segments based on market trends and company strategies[23]. - The new licensing regime for virtual asset trading platforms in Hong Kong is expected to enhance the market's compliance and innovation in the virtual assets sector[133]. - The Group believes its new business model will significantly enhance product capability and market competitiveness in the compliant virtual assets industry[136]. - The global economic growth is projected to recover slowly, with the International Monetary Fund forecasting a growth rate of 2.8% in 2023 and 3.0% in 2024[132]. Governance and Management - The company has a strong board of directors with diverse backgrounds in finance, law, and technology, enhancing its governance and strategic direction[167]. - The board's composition reflects a balance of executive and non-executive directors, promoting effective oversight and strategic decision-making[167]. - The management team includes experienced professionals with qualifications from prestigious institutions, contributing to the company's credibility and operational efficiency[174]. - The company is committed to maintaining compliance with the Securities and Futures Ordinance, ensuring transparency and accountability in its operations[162]. - The Group has implemented Anti-Money Laundering (AML) and Know-Your-Client (KYC) policies to mitigate risks associated with trust business compliance in Hong Kong[123][126]. Staffing and Costs - As of March 31, 2023, the Group employed a total of 107 staff, down from 141 staff as of March 31, 2022[142]. - Total staff costs for the year amounted to approximately HK$107.5 million, compared to approximately HK$132.5 million for the previous year, reflecting a decrease of about 19%[142]. Financial Position - As of March 31, 2023, the Group's total assets amounted to approximately HK$1,105.2 million, up from approximately HK$997.3 million as of March 31, 2022, while total liabilities increased to approximately HK$896.6 million from approximately HK$830.7 million[92]. - The Group's debt ratio decreased to approximately 81.1% as of March 31, 2023, down from approximately 83.3% as of March 31, 2022[92]. - The gearing ratio improved to approximately 40.2% as of March 31, 2023, compared to approximately 61.6% as of March 31, 2022, due to partial repayment of related party loans totaling approximately HK$14.2 million during the year[94]. - The Group did not have any pledged bank deposits as of March 31, 2023, maintaining a cash balance of approximately HK$90.6 million, down from approximately HK$135.6 million as of March 31, 2022[93]. - The Group recorded an impairment loss of approximately HK$7.0 million during the Year, a decrease of approximately HK$20.4 million compared to HK$27.4 million for the year ended March 31, 2022[83].
欧科云链(01499) - 2023 - 年度财报