Financial Performance - The total loss and comprehensive expenses for the year amounted to approximately HKD 22.5 million, a decrease of about 1,046.09% compared to a profit of approximately HKD 2.4 million in 2021, primarily due to a revenue decrease of approximately 58.2%[27]. - Total revenue decreased from approximately HKD 83.7 million for the year ended February 28, 2021, to approximately HKD 35 million for the year ended February 28, 2022, reflecting a decline of approximately 58.2%[28]. - Revenue from corporate finance advisory services decreased by approximately 61.2% from about HKD 38.2 million in 2021 to approximately HKD 14.8 million in 2022[29]. - Revenue from initial public offering (IPO) sponsorship services was approximately HKD 6.4 million in the current year, down from HKD 23.4 million in 2021[32]. - Revenue from financial advisory and independent financial advisory services decreased to approximately HKD 3.5 million from HKD 8 million in the previous year[33]. - Revenue from compliance advisory services was approximately HKD 4.9 million, down from HKD 6.9 million in 2021[34]. - The company completed 8 placement and underwriting projects in the current year, generating approximately HKD 4.2 million in revenue, a significant decrease from HKD 33.6 million in 2021[37]. - The group's revenue decreased by 58.2% to approximately HKD 35 million for the year, down from HKD 83.7 million in 2021, primarily due to delays in IPO sponsorship projects caused by sporadic COVID-19 outbreaks in Hong Kong[45]. - The loss attributable to the company's owners for the year was approximately HKD 22.5 million, compared to a profit of HKD 2.4 million in 2021, resulting from the decrease in revenue[46]. Market Conditions - The total market capitalization decreased from HKD 529.416 billion in February 2021 to HKD 408.890 billion in February 2022[18]. - The Hang Seng Index dropped from a high of 31,085 points on February 17, 2021, to a low of 22,713 points on February 28, 2022[18]. - The business environment in Hong Kong remains challenging due to ongoing COVID-19 impacts and geopolitical tensions from the Ukraine war, leading to a cautious attitude among clients and investors[85]. - Inflation has surged, contributing to uncertainties in the securities market, with economic recovery in Hong Kong and globally expected to be slow in the short term[85]. Company Strategy and Outlook - The company aims to maintain healthy growth in existing businesses while developing new lending services[22]. - The company plans to regularly review business strategies and prudently control costs in response to market conditions[22]. - The company believes that the current macroeconomic downturn will eventually turn around, leading to long-term positive development for its existing businesses[22]. - The company is focused on creating wealth for clients through innovative thinking[22]. - The company has initiated a lending business this year, which has shown promising beginnings, and will continue to invest resources in this area while enhancing credit risk management[85]. - The company maintains an optimistic long-term outlook for the Hong Kong financial market and economy, viewing it as a crucial gateway to the Chinese stock market[85]. - The company plans to closely monitor market conditions and adjust business strategies prudently and timely in response to the unclear economic outlook[85]. Revenue Diversification - The company has diversified its revenue sources by maintaining equity investments and expanding lending operations[21]. - The lending service division generated revenue of HKD 21,000 for the year, compared to zero in 2021, with plans to enhance loan approvals and development in this area[42]. Operational Efficiency - Other operating expenses decreased by approximately 37.5% to about HKD 10.7 million from approximately HKD 17.1 million in the previous year, mainly due to reduced bad debt expenses[47]. - Employee costs decreased by approximately 48.5% to about HKD 37.4 million from approximately HKD 72.6 million in the previous year, attributed to a reduction in the number of employees and discretionary bonuses[48]. - As of February 28, 2022, the group's net current assets were HKD 205.8 million, down from HKD 223.5 million in 2021, with a current ratio of 3.17, compared to 2.27 in the previous year[49]. - The group had no debt as of February 28, 2022, resulting in an asset-to-liability ratio of approximately zero[49]. Corporate Governance - The company has a strong commitment to corporate governance, with several senior members being active in professional accounting and governance organizations[99][105]. - The company emphasizes the importance of risk management and compliance in its operations, ensuring adherence to regulatory standards[109]. - The company has confirmed that all independent non-executive directors are independent from the company[147]. - The board consists of five directors, including two executive directors and three independent non-executive directors[194]. - The company has established service contracts with all executive directors and appointment letters with independent non-executive directors[196]. - The company has adhered to the principles and code provisions of the corporate governance code throughout the year[193]. Investment and Shareholder Information - As of February 28, 2022, the controlling shareholder, Mr. Zhong, holds 300,000,000 shares, representing 75% of the company's equity[165]. - As of February 28, 2022, the total number of issued shares was 400,000,000[167]. - The company raised approximately HKD 158 million from its initial public offering, with about 98.8% (HKD 156.15 million) utilized by February 28, 2022[183]. - The stock option plan allows for the issuance of up to 40,000,000 shares, representing 10% of the total issued shares at the time of listing[174]. - The group did not declare any dividends for the fiscal year ending February 28, 2022, consistent with the previous year[132]. - The group has not issued any debt securities during the fiscal year and up to the date of the report[130].
创升控股(02680) - 2022 - 年度财报