Financial Performance - For the fiscal year 2022 to 2023, the total revenue and investment income recorded by the company was approximately HKD 31,700,000, representing an increase of about 27.4% compared to the previous fiscal year[8]. - The loss attributable to the owners of the company for the fiscal year was approximately HKD 5,600,000, a decrease of about 30.6%[8]. - The total revenue and investment income for the year amounted to approximately HKD 31,700,000, an increase of about 27.4% or approximately HKD 6,800,000 compared to HKD 24,900,000 in 2022[12]. - Commission and brokerage fees from securities trading decreased by approximately 55.7% from HKD 8,600,000 in 2022 to HKD 3,800,000 in 2023[13]. - Interest income from margin clients increased by approximately 1.5% to HKD 8,200,000 from HKD 8,100,000 in the previous year[14]. - Interest income from loan financing services was approximately HKD 22,200,000, up from HKD 20,100,000 in 2022, representing an increase of about 10.5%[15]. - The total trading volume for securities decreased by approximately 51.3% from HKD 100,149,100,000 in 2022 to HKD 48,754,700,000 in 2023[13]. - Placement and underwriting commissions decreased by approximately 81.5% from HKD 4,500,000 in 2022 to HKD 800,000 in 2023[19]. Investment Portfolio - As of March 31, 2023, the value of the company's investment portfolio was approximately HKD 18,400,000, down from approximately HKD 23,400,000 in the previous fiscal year[8]. - As of March 31, 2023, the value of the investment portfolio, including listed securities, equity-linked notes, and debt instruments, was approximately HKD 18,400,000, a decrease of about 17.1% from HKD 22,300,000 in 2022[21]. - The expected credit loss on receivables was approximately HKD 33,900,000, compared to HKD 13,200,000 in the previous year[17]. - The expected credit loss on trade receivables and loans was approximately HKD 4,900,000 and HKD 10,600,000, respectively, compared to zero and HKD 4,500,000 in 2022[23]. Business Strategy and Growth - The company continues to diversify its revenue sources, including interest income and non-interest income, despite economic uncertainties[8]. - The company aims to expand its customer base and enhance its trading platform to drive business growth[8]. - The company plans to explore new business opportunities and expand its core business to provide optimal returns to shareholders[9]. - The company aims to expand its client base and enhance its trading platform to develop brokerage and underwriting businesses[40]. - The company is committed to expanding its margin and loan financing business as well as securities advisory services to meet customer needs[40]. - The company continues to explore potential business opportunities to generate new revenue streams and enhance profitability[40]. Economic Environment - The financial market faced significant volatility and uncertainty during the review period, influenced by geopolitical conflicts, inflation concerns, and the ongoing COVID-19 pandemic[11]. - The initial public offering market in Hong Kong was quiet during the fiscal year[11]. - The company anticipates that the global economy will face ongoing challenges in 2023 due to interest rate cycles and high inflation[40]. Corporate Governance - The board of directors is responsible for formulating the company's strategy and overseeing performance and risk management[44]. - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with GEM listing rules[45]. - The board has established three committees: audit, remuneration, and nomination to assist in overseeing management responsibilities[44]. - The company currently has no chairman, with daily operations managed by the CEO, ensuring balanced power and efficient decision-making[56]. - The company will arrange for the re-election of a new chairman at an appropriate time[57]. - All directors have received training on their responsibilities and relevant regulations to enhance governance practices[53]. - The board consists of experienced individuals who regularly discuss operational matters affecting the company[56]. - The company has established a clear division of responsibilities between the chairman and the CEO, as per governance codes[55]. - The audit committee held four meetings during the fiscal year ending March 31, 2023, with all members attending all meetings[63]. - The independent non-executive directors have confirmed that the ongoing connected transactions were conducted in the ordinary course of business and on normal commercial terms[184]. Environmental, Social, and Governance (ESG) - The company is committed to enhancing its ESG performance and data collection to address stakeholder concerns[79]. - The ESG report covers the fiscal year from April 1, 2022, to March 31, 2023, focusing on the company's core business in Hong Kong[80]. - The board has established an ESG organizational structure to oversee sustainability initiatives and risk management[82]. - The company emphasizes the importance of transparency and consistency in its ESG reporting principles[81]. - The company has implemented energy-saving measures, including setting air conditioning to 25.5 degrees Celsius and encouraging employees to turn off unused equipment[98]. - The company has established an ESG working group to manage ESG affairs and monitor key performance indicators[85]. - The company has identified three key ESG issues: employee welfare, occupational health and safety, and anti-corruption policies[87]. - The company has engaged third-party ESG professionals to assist in assessing the importance of ESG issues[86]. - The company has adopted multiple waste reduction measures, resulting in minimal overall waste generation[93]. - The company has complied with relevant laws and regulations regarding gas and greenhouse gas emissions, as well as waste management[94]. Employee and Workplace Policies - The overall employee turnover rate for the year was 7%, a significant decrease from 21.4% in the previous year, indicating a healthy turnover rate[114]. - The company recorded zero work-related injury cases over the past three years, resulting in no lost workdays[115]. - The company provides competitive compensation and benefits, including mandatory MPF contributions for eligible employees[114]. - The company has established a non-discrimination policy applicable to all employment activities, ensuring equal treatment of employees regardless of various personal characteristics[111]. - The company has implemented measures to protect personal data, ensuring that data is not inadvertently deleted or lost[126]. - The company has maintained compliance with laws and regulations related to advertising, labeling, and privacy, with no serious violations reported this year[128]. - The company has provided flexible work arrangements, including remote work and staggered hours, as needed[117]. - The company has encouraged employees to maintain good posture and proper visual levels while working to reduce physical stress and strain[25]. - The company aims to achieve 100% training coverage for anti-corruption training over a four-year period, starting with directors, management, and frontline sales personnel[120]. - The company provided 21.5 hours of training focused on operational and professional areas per employee, averaging over 1 hour of training per person this year, compared to 30 hours in the previous year[120]. Financial Position and Compliance - As of March 31, 2023, the group's cash and bank balances were approximately HKD 16,500,000, a decrease of about 58.1% from HKD 39,400,000 in 2022[25]. - The current ratio as of March 31, 2023, was approximately 2.4 times, down from 3.1 times in 2022[25]. - The debt-to-equity ratio at the end of the reporting period was 14.8%, compared to 9.9% in 2022[26]. - The group reported a total of 15 full-time employees, with a turnover rate of 7% for the year 2023, a significant decrease from 21.4% in 2022[134]. - The independent auditor has confirmed that the consolidated financial statements fairly represent the group's financial position as of March 31, 2023, in accordance with Hong Kong Financial Reporting Standards[193]. - The company has maintained the required public float as per GEM listing rules as of the report date[189]. - The independent auditor will be proposed for reappointment at the annual general meeting, ensuring continuity in audit oversight[190]. - The group has maintained compliance with relevant laws and regulations, with no legal actions taken against the group or its employees[132].
昌利控股(08098) - 2023 - 年度财报