Financial Performance - The company's revenue decreased from approximately HKD 10,600,000 in the previous year to about HKD 6,600,000, representing a decline of approximately 37.8%[8] - The group's revenue for the year ended December 31, 2021, was approximately HKD 6,600,000, a significant decrease of about 37.8% compared to HKD 10,600,000 for the previous year[29] - The group recorded a loss of approximately HKD 20,200,000 for the year, compared to a loss of HKD 21,700,000 in the previous year, indicating a reduction in losses[30] - The loss attributable to equity shareholders for the year was approximately HKD 20,200,000, down from HKD 21,700,000 in the previous year[30] - The basic and diluted loss per share for the year was approximately HKD 0.0252, compared to HKD 0.0272 in the previous year[30] - The decline in revenue was primarily due to weak market conditions in Hong Kong and overseas, leading to reduced brokerage income from the futures market[29] - The brokerage commission income from futures and options trading decreased significantly, with a total of HKD 6,017,000, down 38.5% from HKD 9,791,000 in the previous year[36] - Other net income for the year was approximately HKD 300,000, a significant decrease from HKD 2,500,000 in the previous year, mainly due to the absence of a one-time government subsidy[44] Business Strategy and Opportunities - In January 2022, the company completed the placement of notes amounting to approximately HKD 40,000,000 to support future growth in existing and new lending businesses[9] - The management is exploring various business opportunities to diversify revenue sources beyond just futures and securities brokerage income[9] - The company aims to continue seeking opportunities to enhance shareholder value and expand its revenue sources in 2022[9] - The company has implemented measures to develop new distribution channels and provide futures and options brokerage services to other licensed securities and futures brokers[8] - The group plans to diversify its product offerings and develop new distribution channels to improve financial performance over the next 24 months[71] Operational Challenges - The ongoing COVID-19 pandemic, particularly the Omicron variant, has significantly impacted the company's operations and the broader brokerage industry in Hong Kong[9] - The ongoing mandatory quarantine measures for non-Hong Kong residents were identified as a significant barrier for potential clients in China to complete account opening procedures[29] - The company implemented several measures to mitigate the decline in the number of Chinese clients since mid-2020, but total revenue was still significantly impacted[29] - Active customers decreased to 286, down 6.5% from 306 active customers as of December 31, 2020, primarily due to a reduction in trading activity from clients in China[43] Cost Management - The management has strictly controlled operating expenses to navigate the challenging business environment[8] - Employee costs decreased due to a one-time bonus of HKD 2,000,000 paid to executive directors in the previous year[30] - Other operating and administrative expenses decreased by approximately HKD 8,500,000, mainly due to reduced marketing expenses[30] - General and administrative expenses were approximately HKD 17,900,000, a decrease of about 32.2% from HKD 26,400,000 in the previous year[46] - Marketing expenses for the year amounted to approximately HKD 3,500,000, a significant decrease of about HKD 7,600,000 compared to the previous year, representing 19.4% of general and administrative expenses[50] Corporate Governance - The board of directors is committed to ensuring the accuracy and completeness of the information presented in the annual report[3] - The company has adopted the GEM Listing Rules Appendix 15 Corporate Governance Code and has complied with applicable provisions, except for a deviation regarding the separation of roles between the Chairman and CEO[73] - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring compliance with GEM Listing Rules[79] - The company has received annual confirmations of independence from all independent non-executive directors, affirming their status as independent individuals[83] - The board is responsible for leading and controlling the company, overseeing business strategies and performance, and making objective decisions in the best interest of the company[87] Environmental, Social, and Governance (ESG) Practices - The company is committed to sustainable development, emphasizing the importance of environmental, social, and governance (ESG) practices in its operations[144] - The company has established a governance framework for environmental, social, and governance (ESG) commitments, integrating these into decision-making processes[153] - The ESG working group, composed of senior management, is responsible for collecting and analyzing ESG data and ensuring compliance with relevant laws and regulations[153] - The company reported a carbon emission of 90 tons of CO2 equivalent for the year 2021, compared to 86 tons in 2020, indicating a slight increase in emissions[160] - The company aims to maintain or reduce the total greenhouse gas emission intensity (tons of CO2 equivalent per employee) over the next three years[159] Employee Management and Culture - The company promotes a "people-oriented" corporate culture, focusing on creating a safe working environment and providing equal opportunities for all employees[178] - The employee turnover rate for the year was approximately 37%, a significant increase from 5% in 2020[184] - The company has a zero-tolerance policy towards workplace harassment and discrimination, ensuring equal opportunities for all employees[180] - The company provides a minimum of 7 days of annual leave along with additional leave types, including maternity and compassionate leave[184] - The company conducts annual performance evaluations to assess employee progress and determine promotions based on merit[183]
立桥证券控股(08350) - 2021 - 年度财报