Financial Performance - Revenue from the footwear business increased significantly by 441.1% from approximately HKD 5,600,000 in 2021 to about HKD 30,300,000 in 2022, with losses reduced from HKD 4,900,000 to approximately HKD 1,300,000[8] - Revenue from the loan brokerage and credit assessment segment decreased by 71.1% from approximately HKD 3,800,000 in 2021 to about HKD 1,100,000 in 2022, resulting in a loss of approximately HKD 500,000[9] - The company recorded revenue of approximately HKD 31,400,000 for the year ended December 31, 2022, an increase of approximately 237.6% compared to HKD 9,300,000 in 2021[19] - The footwear and apparel segment generated revenue of approximately HKD 30,300,000 in 2022, up from approximately HKD 5,600,000 in 2021, due to operations in Hong Kong and Canada[20] - The cost of goods sold was approximately HKD 27,500,000 in 2022, significantly higher than approximately HKD 5,200,000 in 2021[22] - The company reported a net loss of approximately HKD 5,300,000 for the year, down from approximately HKD 14,900,000 in 2021[30] Business Strategy and Expansion - The company plans to explore the North American footwear market, starting with a boutique store in Vancouver[9] - The company aims to expand its footwear trade to online platforms while maintaining its fashion footwear and sportswear products in Hong Kong[9] - The company intends to seek partnerships with more local and overseas businesses to expand its retail operations[9] - The company has diversified its footwear business by selling branded products in both Hong Kong and Canada since early 2022[14] - A new company was established in 2022 to facilitate operations in Vancouver, Canada[14] - The company will maintain its operational scale and retail network in 2023 while regularly reviewing the North American market conditions[14] - The company plans to expand its brand portfolio and product categories to increase consumer reach and explore online platform opportunities[15] Financial Position and Liquidity - As of December 31, 2022, the total borrowings amounted to approximately HKD 14,500,000, compared to approximately HKD 9,300,000 in 2021, with a debt-to-asset ratio of 49.0%[32] - The company maintained a cash balance of approximately HKD 2,000,000 as of December 31, 2022, down from approximately HKD 3,500,000 in 2021[32] - Employee benefit expenses decreased from approximately HKD 13,300,000 in 2021 to approximately HKD 3,100,000 in 2022 due to cost-cutting measures[26] - The company’s current ratio improved to approximately 1.7 times as of December 31, 2022, compared to approximately 0.8 times in 2021[32] - The liquidity risk faced by the group is slight, as most financial assets and liabilities are due within one year, supported by existing shareholder funds and internal cash flows[59] Share Capital and Financing - The company completed a placement of 120,384,000 new shares at a price of HKD 0.0200 per share, raising approximately HKD 2.3 million net of expenses[35] - Following the placement, the total issued share capital increased from 601,920,000 shares to 722,304,000 shares, representing a 20% increase prior to the placement completion and approximately 16.67% post-completion[35] - The net proceeds from the 2021 and 2022 placements were approximately HKD 10.3 million and HKD 2.3 million, respectively, with specific allocations for business operations and working capital[47][50] Governance and Compliance - The company has complied with all relevant laws and regulations applicable to its business operations[60] - The group has complied with all applicable code provisions of the corporate governance code, except for certain deviations due to member availability[138] - The company has established a risk management committee to monitor sanction risks and implement internal control procedures[126] - The board has adopted the GEM Listing Rules regarding the standards of conduct for securities trading by directors, confirming compliance for the year ending December 31, 2022[147] - The company has established specific committees to oversee various aspects of governance, including the audit, remuneration, nomination, and risk management committees[161] Risk Management - The company established an enterprise risk management framework in 2016, based on the COSO framework, to effectively manage risks[187] - The risk register is updated at least annually to reflect new risks or remove existing ones, ensuring proactive risk management[188] - The company has a "three lines of defense" governance structure for operational management and risk control[188] Employee and Stakeholder Relations - The management expresses gratitude to employees and stakeholders for their support and contributions during the year[10] - The company employed a total of 16 staff as of December 31, 2022, an increase from 12 in the previous year, primarily due to expansion in retail operations[55] - The company encourages feedback from investors and the public to strengthen relationships[195] Corporate Social Responsibility - The group did not make any charitable donations during the year, maintaining a consistent stance from the previous year[78] - The company has a whistleblowing and anti-corruption policy in place to handle employee complaints and feedback[198] Shareholder Engagement - The company has implemented a communication policy to enhance engagement with shareholders and investors, with a dedicated website for information dissemination[191] - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within two months of the request[190] - The board will continue to review the effectiveness of the shareholder communication policy at least annually[195] Board Composition and Diversity - The board consists of 5 executive directors and 7 non-executive directors, ensuring a diverse governance structure[150][151] - The company aims to appoint an additional director of a different gender by December 31, 2024, to further improve board diversity[175] Audit and Financial Oversight - The audit committee reviewed the financial statements for the quarter ending March 31, 2022, and confirmed compliance with applicable accounting standards and GEM listing rules[163] - The audit committee held 4 meetings during the year ending December 31, 2022[164]
积木集团(08187) - 2022 - 年度财报