Financial Performance - For the year ended December 31, 2022, the Group recorded revenue of approximately HK$141,903,000, a decrease of 13.8% from HK$164,764,000 in 2021[18]. - Loss attributable to owners of the Company amounted to approximately HK$18,844,000, compared to HK$20,558,000 in 2021, indicating a reduction in losses[18]. - The impairment loss on goodwill was approximately HK$5,168,000, contributing to the net loss for the year[18]. - General and administrative expenses were approximately HK$121,686,000, which significantly impacted overall profitability[18]. - The Group's financial performance reflects ongoing challenges but shows some improvement in specific business segments[18]. - The Group recorded a net loss attributable to owners of approximately HK$18,844,000 for the year ended December 31, 2022, compared to a loss of HK$20,558,000 in 2021[37]. - Revenue from continuing operations decreased by approximately 13.9% to approximately HK$141,903,000, down from HK$164,764,000 in 2021[38]. - The Group recorded a fair value gain on financial assets through profit or loss of approximately HK$3,341,000[37]. - General and administrative expenses decreased to approximately HK$121,686,000 from HK$124,991,000 in 2021[41]. Revenue Breakdown - Revenue from the financial services business amounted to approximately HK$15,214,000, an increase from HK$12,777,000 in 2021[25]. - Income from the food and beverage business was approximately HK$117,564,000, which was a significant contributor to total revenue[18]. - The food and beverage business reported a turnover of approximately HK$117,564,000, down from HK$144,067,000 in 2021[38]. - The alcoholic beverage distribution and miscellaneous business saw revenue rise to approximately HK$1,596,000 from HK$1,264,000 in 2021[38]. - The children education business generated revenue of approximately HK$4,500,000, slightly up from HK$4,448,000 in 2021[38]. - Revenue from the food and beverage business amounted to approximately HK$117,564,000 for the year, a decrease from approximately HK$144,067,000 in the previous year[177]. - Revenue from the distribution of alcoholic beverages and miscellaneous business amounted to approximately HK$1,596,000, an increase from HK$1,264,000 in the previous year[195]. Government Support - The Group received government grants of approximately HK$6,598,000 related to COVID-19 subsidies, aiding financial performance[18]. - The Hong Kong government lifted all COVID-19 measures at the beginning of 2023, leading to a recovery in revenue for the food and beverage segment[180]. Money Lending Business - Loan interest income from the money lending business increased to approximately HK$2,713,000 in 2022, up from HK$2,006,000 in 2021[19]. - As of December 31, 2022, the total amount of loans and interest receivable in the Group's money lending segment was approximately HK$14.2 million, with personal loans representing approximately 100% of the total active and outstanding loan portfolio[55]. - The effective interest rate for the Group's active and outstanding loans ranged from approximately 10% to 18% per annum, with unsecured loans accounting for approximately 83.3% of the total number of loans and approximately 88.8% of the total value of the loan portfolio[56]. - The Group's money lending services include personal loans, business loans, and mortgage loans, with interest rates and repayment terms varying across different loan categories[49]. - The Group's money lending business primarily targets well-heeled and reputable individuals and established companies, with all customers being either Hong Kong or PRC residents or companies operating in these regions[64]. - The Group extended a loan of approximately HK$786,000 to a former executive director at an interest rate of 9% per annum for a term of six months, which was fully repaid during the year[50]. - Approximately 100% of the outstanding loan balance as of December 31, 2022, was repayable within one year, indicating a focus on short-term lending[55]. - The Group may request personal or corporate guarantees for loans on a case-by-case basis, with mortgage-backed loans representing approximately 16.7% of the total number of loans and approximately 11.2% of the total value of the loan portfolio[62]. - The majority of loans granted by the Group are short-term loans, with borrowers typically not providing collateral due to the nature of their financial needs[57]. - The Group recorded an impairment loss on loans and interest receivables of approximately HK$2 million for the year ended December 31, 2022, a significant increase from approximately HK$0.4 million in the previous year[71]. - The impairment loss represented approximately 11.9% of gross loans and interest receivables as of December 31, 2022[72]. - The Group's loans to major customers had a credit period ranging from 6 months to 1 year, negotiated based on commercial practices and the Group's credit policy[67]. - The Group will continue to implement risk control and management strategies while broadening its customer base[68]. Credit Risk Management - The Credit Committee is responsible for approving and overseeing the credit policy and monitoring the loan portfolio[87]. - The Group has established standardized credit policies for loan approval procedures[86]. - The Credit Committee consists of two members, including an executive director and a finance manager with over ten years of experience[88]. - The Group applies various factors to assess potential customers on a case-by-case basis[89]. - Strict credit assessment procedures are in place to verify the creditworthiness of customers before loan approval[90]. - The Group has refined loan approval procedures and is taking a cautious approach to credit risk management due to unclear economic outlook[107]. - The Credit Committee evaluates loan applications based on factors such as income proof, asset proof, and the ability to provide personal guarantees for individual customers[95]. - For corporate customers, the evaluation focuses on revenue stream, track record, and asset proof, with no restrictions on industry or principal business location[96]. - The Group requires customers to provide signed and post-dated bank cheques according to tailored repayment schedules to manage credit risk[106]. - The Group conducts regular analysis and review of its loan portfolio and compliance matters to control credit risk[106]. - Legal searches are conducted on potential borrowers to ascertain their creditworthiness and repayment ability[99]. - The Group has implemented debt recovery procedures to monitor and recover late payments or defaults effectively[106]. - The Group presumes a significant increase in credit risk when contractual payments are more than 365 days past due, unless there is reasonable evidence to the contrary[140]. - Management assesses the market values of pledged securities for clients with margin shortfalls, concluding that expected credit losses for receivables from margin clients are insignificant[144]. - The Group considers various factors, including external credit ratings and market indicators, when assessing whether credit risk has increased significantly[138]. - The Group's internal control includes a thorough credit risk assessment process before granting credit limits to customers, ensuring financial capacity is verified[147]. - Regular updates on loan limit reports and margin lists are provided to directors for ongoing monitoring of credit risks associated with margin clients[148]. - The Group's credit risk assessment includes evaluating historical status of margin calls and clients' financial documents to ensure robust risk management[149]. Business Strategy and Future Outlook - The Group plans to focus resources on Hong Kong following the disposal of its food and beverage business in Singapore[27]. - The Group will continue to monitor economic uncertainties and adjust strategies to ensure growth and profitability[33]. - The Group is committed to developing its brand portfolio by refining existing brands and launching new ones[188]. - The group plans to build a competent sales team while minimizing costs to address the weakening performance in the alcoholic beverage segment[195]. - The Group's margin financing services and brokerage services are expected to face challenges due to global inflation pressures and a shift toward higher interest rates[165]. - The Group will continue to monitor its margin financing portfolio closely and adopt risk control strategies while expanding its customer base[130]. Asset Management and Investments - The Group's diversified securities investment portfolios include both listed and non-listed companies and debt securities to increase returns to shareholders[166]. - The Group's financial assets at fair value through profit or loss are all shares of listed companies in Hong Kong[166]. - The Group is enhancing its securities service mobile application to improve user experience and competitiveness in the financial services segment[165]. - The Group's expected credit loss (ECL) assessment is based on historical credit loss experience and adjusted for specific debtor factors, with a loss allowance equal to 12 months ECL unless there is a significant increase in credit risk since initial recognition[136]. - For the years ended December 31, 2022, and 2021, no impairment loss was recognized on loans to margin clients, indicating stable credit risk management[136]. - Interest income from the financial service business segment amounted to approximately HK$8,957,000 for the year, an increase from HK$7,640,000 in 2021, reflecting growth in this segment[143]. Operational Changes - The group has discontinued its food and beverage business in Singapore following the disposal of Amber Glory and its subsidiary[187]. - The food and beverage industry in Hong Kong remains challenging due to intense competition and rising operating costs[188]. - The company operates the Hong Kong Nobel Preschool, which is a registered kindergarten providing preschool education[200]. - The company became a 51% owned subsidiary of the Group in October 2018[200].
国农金融投资(08120) - 2022 - 年度财报