Financial Performance - The company reported a significant decline in revenue due to external factors, with a decrease of approximately HKD 3,280,000 in brokerage service commission income and related financing income[9]. - Revenue from corporate finance advisory services and asset management services also fell by about HKD 926,000[9]. - The company's revenue for the year ended December 31, 2022, was HKD 8,705,000, a decrease of 32.6% compared to HKD 12,911,000 in 2021[25]. - The pre-tax loss increased by 307.8%, from HKD 8,428,000 in 2021 to HKD 34,368,000 in 2022[25]. - The total equity decreased by 31.0%, from HKD 216,353,000 in 2021 to HKD 149,384,000 in 2022[25]. - The average daily turnover of the Hong Kong securities market fell by 25.1%, from HKD 166.7 billion in 2021 to HKD 124.9 billion in 2022[16]. - The Hang Seng Index dropped by 15.5%, from approximately 23,398 points at the end of 2021 to 19,781 points at the end of 2022[16]. - The company recorded a loss of approximately HKD 34,116,000 for the year, compared to a loss of HKD 8,873,000 in the previous year[37]. - The total revenue for the year was approximately HKD 8,705,000, a decrease of about 32.6% compared to HKD 12,911,000 in the previous year[27]. - Commission income from brokerage services decreased by approximately 46.7% to HKD 1,791,000, primarily due to a decline in client trading volume[27]. - Income from placement and underwriting services dropped significantly by about 60.0% to HKD 540,000, with the number of placements decreasing from 7 to 4[27]. - Interest income from securities and IPO financing fell by approximately 19.5% to HKD 3,715,000, attributed to weak demand for these services[27]. - Other income increased by approximately 47.4% to HKD 2,782,000, mainly due to a rise in interest income from non-listed debt securities and a subsidy from the Hong Kong government[29]. Market Conditions - The average daily trading volume in the Hong Kong securities market and the fundraising scale for IPOs and secondary markets saw a significant decline, impacting overall performance[9]. - The company faced challenges from various external factors, including geopolitical risks and the ongoing COVID-19 pandemic, affecting market conditions[8]. - The Federal Reserve raised interest rates seven times, increasing the target federal funds rate from 0-0.25% to 4.25-4.5%, contributing to economic uncertainty[8]. - The report highlights the impact of the COVID-19 pandemic on the Hong Kong economy, particularly during the fifth wave of infections[8]. - The outlook for 2023 anticipates growth in Hong Kong's export market and an increase in business travelers, with GDP expected to grow by 3.9%[38]. Corporate Governance - The company is committed to transparency and accuracy in its financial reporting, with directors confirming the completeness and accuracy of the annual report[3]. - The company is committed to maintaining high standards of corporate governance, aligning with the GEM listing rules and enhancing stakeholder confidence[86]. - The board has reviewed and continues to improve corporate governance standards to ensure accountability and transparency[87]. - The company emphasizes the importance of internal controls and effective governance practices to drive long-term shareholder value[86]. - The board consists of 6 members, including 3 executive directors and 3 independent non-executive directors, ensuring effective oversight and governance[92]. - The company has established an environmental, social, and governance (ESG) working group to manage ESG matters across its business units[88]. - The board is responsible for leading and monitoring the group, aiming to maximize long-term value for shareholders while balancing stakeholder interests[92]. - The company has implemented a credit risk management team to minimize financial losses from counterparty defaults[70]. - The company maintains a monitoring system to ensure compliance with regulatory liquidity requirements[71]. - The board believes that internal resources and operating capital are sufficient to meet financial obligations[72]. Strategic Planning and Development - The company plans to continue monitoring market conditions and adjusting strategies accordingly to navigate the challenging environment[9]. - The company plans to focus on placement and underwriting services and corporate finance advisory services while continuously reviewing operational capital levels[13]. - The management remains optimistic about the future performance of the Original Growth SP3, expecting continued growth in emerging markets and a cautious approach to managing the investment portfolio[53]. - The company is committed to responsible investment and aims to create long-term value for stakeholders through sustainable growth and development[88]. - The company has a structured approach to business planning and development, ensuring alignment with market trends and opportunities[76]. - The executive team is actively involved in overseeing daily trading operations, which is crucial for maintaining market competitiveness[83]. Shareholder Communication - The company has adopted a shareholder communication policy to ensure timely access to comprehensive and understandable information for shareholders and potential investors[147]. - The board will continue to engage in dialogue with shareholders to establish a two-way communication relationship[148]. - The company’s financial performance and position as of December 31, 2022, are detailed in the annual report, pages 75 to 163[159]. Risk Management - The company has implemented measures to ensure compliance with insider information disclosure regulations[137]. - The company has a zero-tolerance policy towards corruption, bribery, and fraud[139]. - The company has established a code of conduct for preventing corruption, which all directors and staff must adhere to[140]. - The company’s risk management framework identifies and manages key business risks, including financial performance and shareholder interests[133]. - The company has not reported any significant internal control deficiencies during the independent review conducted by the external consultant[136]. Employee Relations - The company maintained harmonious relationships with employees, clients, and business partners, with no complaints received during the year[191]. - The total employee costs for the group were approximately HKD 16,891,000, a decrease from approximately HKD 17,672,000 in 2021[41]. - The monthly salary of executive director Yu Huiling was increased to HKD 30,000 starting January 1, 2023[198]. - As of December 31, 2022, the company had 26 full-time employees, with a gender ratio of approximately 1.9:1 (17 males and 9 females)[112]. Share Options and Capital Structure - The company has adopted a share option scheme to reward eligible participants based on individual qualifications and contributions[199]. - As of December 31, 2022, there were 6,800,000 unexercised share options remaining, equivalent to 68,000,000 options before the share consolidation[181]. - The exercise price of the share options was adjusted to HKD 0.96 per share following the share consolidation effective December 21, 2022[180]. - The total number of share options available for issuance under the plan was 8,000,000 shares, representing approximately 7.1% of the total issued shares[181]. - The company has committed to comply with all relevant laws and regulations in the financial services industry, particularly the Securities and Futures Ordinance[185]. - The company did not engage in any other purchases, sales, redemptions, or cancellations of any redeemable or listed securities during the year[172].
阿仕特朗金融(08333) - 2022 - 年度财报