Financial Performance - The company reported a significant decline in the Hang Seng Index, dropping approximately 5,430 points in the second half of the fiscal year, negatively impacting financial performance [7]. - The company experienced a 30% increase in stock trading stamp duty to 0.13% starting August 1, 2021, which further dampened market sentiment in the latter half of the year [7]. - The company noted that the fundraising amount on the Hong Kong Stock Exchange dropped to third place globally, a decline from its previous first-place ranking due to adverse market conditions [8]. - Revenue for the year ended December 31, 2021, was approximately HKD 102.18 million, an increase of about 26.8% from approximately HKD 80.56 million for the year ended December 31, 2020 [11]. - Net profit for the year ended December 31, 2021, was approximately HKD 15.05 million, a decrease of about 35.1% from approximately HKD 23.18 million for the year ended December 31, 2020, primarily due to increased employee costs and various operating expenses [11]. - Employee costs for the year ended December 31, 2021, were approximately HKD 30.23 million, an increase of about 11.5% from approximately HKD 27.10 million for the year ended December 31, 2020 [18]. - Other operating expenses for the year ended December 31, 2021, were approximately HKD 16.83 million, an increase of about 26.7% from approximately HKD 13.28 million for the year ended December 31, 2020 [18]. - The company anticipates a more certain and better performance in the financial markets in 2022 compared to 2021, driven by positive factors affecting Hong Kong [11]. Business Strategy and Operations - The company plans to focus on two core service segments in 2022: asset management and wealth management services [12]. - The establishment of a new subsidiary, Victory Asset Management Japan Limited, in Fukuoka, Japan, aims to expand the asset management service range, with plans to launch new private fund products in 2022 [22]. - The company has qualified for the Qualified Foreign Institutional Investor (QFII) program, allowing for more direct investment in the Chinese capital market, which is expected to benefit the company and its clients [23]. - The company plans to expand its asset management services by establishing new subsidiaries in China and Japan, and acquiring a stake in a Singapore-registered asset management company [37]. - The company aims to enhance its financial advisory services, focusing on mergers and acquisitions, with revenue from this segment accounting for about 1.0% and 2.8% of total revenue for the years ended December 31, 2021, and 2020, respectively [33]. - The company has delayed promotional activities due to the COVID-19 pandemic but launched several major promotional campaigns in 2021 to expand its customer base [36]. - The company will continue to review and assess its business objectives and strategies in light of market uncertainties and risks associated with the COVID-19 pandemic [37]. Risk Management - The company continues to invest in risk management capabilities to ensure sound credit management procedures in an unstable market environment [14]. - The group identified significant risks related to customer defaults and has enhanced marketing capabilities and optimized loan service procedures to mitigate these risks [142]. - High turnover rates among senior staff have been identified as a risk, prompting the implementation of retention policies, including monthly training sessions and annual performance reviews [145]. - The COVID-19 pandemic has significantly disrupted business activities related to financial advisory services, with ongoing monitoring and emergency measures in place [147]. - The company has engaged professional consultants to independently review its internal controls for the year ending December 31, 2021, covering various functions including financial, operational, compliance, and risk management [150]. - The company’s risk management framework includes identifying, assessing, updating, and monitoring risks related to financial, operational, and compliance activities [152]. Corporate Governance - The company is committed to maintaining high standards of corporate governance through its audit and remuneration committees [87][94]. - The board of directors consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors [103]. - The company has fully complied with the corporate governance code as per GEM listing rules for the year ended December 31, 2021 [101]. - Independent non-executive directors account for over one-third of the board, ensuring adherence to relevant guidelines in financial reporting [107]. - The company has established three permanent committees: audit committee, remuneration committee, and nomination committee to oversee various governance aspects [106]. - The board is responsible for reviewing the company's compliance with the corporate governance code and ensuring proper disclosure in the corporate governance report [136]. - The board acknowledges its responsibility to establish and maintain effective risk management and internal control systems to protect the group's assets and shareholders' interests [139]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report outlines the company's policies and performance regarding significant ESG responsibilities for the year ending December 31, 2021 [178]. - The company has set up various communication channels to ensure timely responses to stakeholder feedback and concerns regarding ESG issues [185]. - The board of directors is responsible for formulating the overall ESG strategy and reporting, ensuring alignment with sustainability goals [178]. - The company has committed to reviewing and assessing its ESG initiatives and measures based on international standards [183]. - The company has implemented energy-saving measures, including the use of LED lighting and energy-efficient appliances, to reduce its carbon footprint [198]. - The company encourages employees to participate in environmental policy planning to promote sustainable development values [193]. - The company emphasizes transparency and effective communication with stakeholders regarding its environmental, social, and governance practices [190].
胜利证券(08540) - 2021 - 年度财报