Financial Performance - The company recorded a loss of approximately HKD 14,300,000 for the fiscal year ending September 30, 2023, compared to a loss of approximately HKD 8,200,000 for the previous year, indicating an increase in losses [11]. - Revenue increased by approximately 17.0% from about HKD 73,000,000 for the year ending September 30, 2022, to about HKD 85,400,000 for the current year [11]. - Administrative and other operating expenses increased by approximately HKD 49,500,000 or 67.5% to about HKD 122,800,000, mainly due to increased employee costs [61]. - The net loss margin for the year was approximately 16.8%, compared to 11.2% in 2022, indicating a deterioration in profitability [71]. - The adjusted EBITDA increased from approximately 11,400,000 HKD in 2022 to about 15,500,000 HKD in 2023, representing a growth of approximately 36.8% [70]. - Income tax expenses rose from approximately HKD 750,000 to about HKD 1,400,000, due to profits generated by certain subsidiaries [63]. Revenue Breakdown - The corporate finance advisory business accounted for approximately 13.6% of total revenue for the fiscal year ending September 30, 2023, while underwriting and placement services contributed about 4.3% and asset management services contributed about 0.1% [18]. - Business consulting services accounted for approximately 44.5% of the total revenue for the year [20]. - Accounting and tax services contributed about 17.2% to the total revenue [20]. - Revenue from licensed business increased by approximately HKD 1,800,000 or 13.1% to about HKD 15,500,000, driven by an increase in placement and underwriting services [58]. - Revenue from non-licensed business rose by approximately HKD 10,600,000 or 17.9% to about HKD 69,900,000, mainly due to contributions from business consulting and accounting services after the acquisition of Earning Joy [59]. - Other income increased significantly from approximately HKD 849,000 to about HKD 23,000,000, primarily due to gains from the sale of financial assets and unrealized gains [60]. Strategic Acquisitions and Partnerships - The company completed the acquisition of 100% of Earning Joy Development Limited, enhancing its strategy to become a one-stop integrated financial service provider [10]. - The company completed the acquisition of Earning Joy Development Limited for HKD 38 million, enhancing its one-stop financial service strategy [22]. - The company entered into a subscription agreement to acquire 18,000,000 shares of RC365 Holding Plc at a price of GBP 0.20 per share, totaling approximately HKD 34.8 million [31]. - The strategic alliance with RC365 will allow the company to share industry expertise and knowledge [31]. - The company entered into a non-binding memorandum of understanding with RC365 on February 13, 2023, to explore potential strategic business cooperation in developing fintech solutions, particularly smart algorithm technology for asset management [32]. - A memorandum of understanding was established with Smart Auto on March 22, 2023, to support cross-border acquisition activities and assist in raising approximately HKD 15 million in capital [35]. Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules and has complied with all applicable provisions for the year ending September 30, 2023 [123]. - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure [124]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee to oversee specific aspects of governance [129]. - The chairman and CEO roles are separated to ensure clear delineation of responsibilities, enhancing the independence of both positions [127]. - The company has a strong focus on corporate governance, with regular reviews of financial and non-financial performance measures by the board [129]. - The company has established a dividend policy that considers various factors before declaring dividends [150]. Risk Management and Compliance - Compliance and risk management have been prioritized, with new measures implemented to ensure adherence to regulatory standards [101]. - The internal audit team conducted an annual review of the risk management and internal control systems, which were deemed effective [158]. - The board has authorized the audit committee to review the effectiveness of the risk management and internal control systems annually [154]. - Major identified ESG risks include cybersecurity threats and data privacy issues, with measures in place to protect sensitive information and ensure proper access controls [190]. - The company has implemented risk management procedures to identify and assess risks affecting its objectives [156]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers significant ESG performance for the year, accounting for about 90.5% of the group's total revenue [171]. - The group is committed to sustainable business growth while supporting diverse stakeholder interests [179]. - The ESG strategy includes four key focus areas aimed at achieving sustainable growth and integrating sustainability into all business aspects [184]. - The company actively seeks to reduce emissions and conserve natural resources, aligning with local environmental standards and international benchmarks [187]. - The company has established an Environmental, Social, and Governance (ESG) policy emphasizing its commitment to environmental protection, climate change, employee health and safety, and community engagement [183]. - The board is responsible for overseeing ESG strategies, goals, and progress [180].
亦辰集团(08365) - 2023 - 年度财报