Financial Performance - Total revenue for the fiscal year ended September 30, 2021, reached HKD 611 million, representing a year-on-year growth of 120.8%[7] - The company recorded total revenue of approximately HKD 610.7 million for the fiscal year ending September 30, 2021, representing an increase of about 120.8% or HKD 334.1 million compared to HKD 276.6 million in the previous fiscal year[47] - Gross profit for the fiscal year 2021 was HKD 302.6 million, up approximately 288.7% or HKD 224.7 million from HKD 77.9 million in fiscal year 2020[47] - The company achieved a net profit of HKD 141.5 million in fiscal year 2021, compared to a net loss of HKD 32.6 million in fiscal year 2020[48] - Basic earnings per share for fiscal year 2021 were HKD 0.460276, a significant improvement from a basic loss per share of HKD 0.106580 in fiscal year 2020[49] - The group reported a profit before tax of approximately HKD 181.5 million in 2021, a turnaround from a loss of HKD 32.6 million in 2020, driven by increased manufacturing business revenue and growth in the virtual asset trading sector[68] - The net cash flow from operating activities was approximately HKD 181.6 million in 2021, compared to HKD 29.8 million used in 2020, reflecting improved operating profit[75] - The total employment cost for the fiscal year 2021 was approximately HKD 141.0 million, up from HKD 91.4 million in the previous year, reflecting a 54% increase[92] Business Expansion and Strategy - The company is actively expanding its compliance trading platform business in financial hubs like Hong Kong and Singapore, with applications submitted for necessary licenses[10] - The company aims to build a leading one-stop virtual asset service platform globally, continuing to apply for relevant licenses to provide professional and compliant virtual asset financial services[10] - The company is focusing on the professionalization and compliance of virtual asset services, which presents significant opportunities[11] - Major financial institutions, including Citibank and BlackRock, are increasingly entering the virtual asset space, indicating a trend towards mainstream adoption[11] - The company aims to embrace opportunities in the Web 3.0 era while maintaining healthy development in its manufacturing business[103] - The company plans to build a "one-stop virtual asset service platform" to connect traditional financial institutions with the virtual asset world[103] - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its portfolio[117] Regulatory and Compliance Developments - The global regulatory landscape for virtual assets is becoming clearer, with traditional financial institutions accelerating their entry into the market[9] - Huobi Trust Company received a trust company license in the United States, allowing it to conduct trust company business as defined under local laws[20] - The company has implemented anti-money laundering policies and procedures to mitigate risks associated with its trust and custody services[91] - The company is committed to sustainability initiatives, aiming to reduce its carbon footprint by G% over the next five years[117] Corporate Governance - The company adopted corporate governance principles in line with the Hong Kong Stock Exchange's listing rules, with a focus on maintaining high standards of corporate governance and business ethics[132] - The board believes that the dual role of the chairman and CEO held by Mr. Li is beneficial for the company's future development, given his over 10 years of experience in corporate management[133] - The company has established a set of standards for directors' securities trading, ensuring compliance with the listing rules and confirming adherence by all directors for the fiscal year ending September 30, 2021[135] - The board consists of six members, including one non-executive director, two executive directors, and three independent non-executive directors[144] - The company has adopted a board diversity policy to ensure sustainable and balanced development, considering factors such as gender, age, cultural background, and professional experience[149] - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination and Corporate Governance Committee to oversee specific areas of governance[144] Market and Product Development - Huobi Technology has launched five virtual asset fund products, which received a strong market response after approval from the Hong Kong Securities and Futures Commission[9] - The technology solutions business generated revenue of approximately HKD 99.2 million, primarily due to the provision of cloud-related services[51] - Revenue from software as a service (SaaS) increased by 17,400% or HKD 121.8 million to HKD 122.5 million, driven by rising virtual asset prices and increased trading volumes[55] - The company anticipates steady growth in its technology solutions business moving forward[53] - New product launches are anticipated, including the introduction of C, which is expected to enhance market competitiveness[117] Financial Agreements and Fees - The asset custody fee under the custody service agreement for 2021 is set at $600,000, increasing to $800,000 for both 2022 and 2023[22] - The compliance service fee under the compliance service agreement for 2021 is $150,000, with a cap of $200,000 for both 2022 and 2023[25] - The annual fee cap for the custodial service agreement with Orion Financial is HKD 73,000,000 for the fiscal year ending September 30, 2024[98] - The annual fee cap for the custodial service agreement with HB Infinite is HKD 14,000,000 for the fiscal year ending September 30, 2024[98] - The annual fee cap for the custodial service agreement with Huobi Gibraltar is HKD 11,600,000 for the fiscal year ending September 30, 2024[98] Employee and Operational Insights - The company had 728 employees as of September 30, 2021, compared to 622 employees a year earlier, representing a growth of 17.0%[92] - Administrative expenses rose by approximately 30.0% from HKD 98.7 million in 2020 to HKD 128.4 million in 2021, attributed to increased employee costs from hiring high-end talent[66] Shareholder Engagement - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of its business and strategies[187] - The company encourages shareholders to submit proposals and suggestions regarding the group's operations and management at the annual general meeting[190] - The company maintains regular dialogue with institutional investors and analysts to keep them informed about its developments[187]
新火科技控股(01611) - 2021 - 年度财报