Revenue and Profitability - Revenue for the year ended September 30, 2022, reached HKD 9,452,864, a significant increase of 1,447.8% compared to HKD 610,713 in 2021[2] - Cryptocurrency trading revenue was HKD 8,939,289, representing a 100% increase as it was not reported in the previous year[2] - Gross profit decreased to HKD 184,694, down 39.0% from HKD 302,631 in the previous year, resulting in a gross margin of only 2.0%[2] - The company reported a loss attributable to owners of HKD 199,670, compared to a profit of HKD 141,477 in the previous year, marking a decline of 241.1%[2] - The total revenue for the fiscal year ending September 30, 2022, was approximately HKD 9,452.9 million, an increase of about 1,447.8% or HKD 8,842.2 million compared to HKD 610.7 million for the fiscal year ending September 30, 2021[49] - The net loss for the fiscal year 2022 was approximately HKD 206.5 million, compared to a net profit of approximately HKD 141.5 million in the fiscal year 2021[49] - The basic loss per share for the fiscal year 2022 was HKD 0.647913, compared to a basic earnings per share of HKD 0.460276 in the previous year[49] - The total comprehensive loss for the year amounted to HKD 219.0 million, compared to a comprehensive income of HKD 146.0 million in 2021[84] Financial Position - Cash and cash equivalents decreased significantly to HKD (144,487), down 156.0% from HKD 257,822 in the previous year[2] - Total equity fell to HKD 147,086, a decrease of 47.2% from HKD 278,605 in the previous year[2] - The group reported a loss before tax of approximately HKD 196.4 million for the fiscal year 2022, compared to a profit of approximately HKD 181.5 million in 2021[74] - The income tax expense decreased from approximately HKD 40.0 million in 2021 to approximately HKD 10.1 million in 2022, a reduction of about HKD 29.9 million[75] - The group recorded a loss after tax of approximately HKD 206.5 million in 2022, compared to a profit of approximately HKD 141.5 million in 2021[76] - The company’s net asset value decreased to HKD 147,086 thousand in 2022, reflecting a significant reduction in financial stability[88] - The company’s debt-to-asset ratio was approximately 317.5%, up from 105.7% in 2021[165] - Total borrowings amounted to approximately HKD 467.1 million, an increase from HKD 294.4 million in 2021[165] Operational Performance - The company operates three reportable segments: contract manufacturing, technology solutions services, and virtual asset ecosystem[100] - The technology solutions business generated revenue of approximately HKD 72.8 million in fiscal year 2022, down from HKD 99.2 million in the previous year[53] - The revenue from the Software as a Service (SaaS) business decreased by 93.8% from approximately HKD 122.5 million in 2021 to about HKD 7.6 million in 2022 due to major client losses and a decline in virtual asset trading volume[55] - The virtual asset lending and over-the-counter trading business generated revenue of approximately HKD 8,939.3 million, becoming the main source of income for the company[65] - The company sold Win Techno Inc. for a consideration of USD 3,270,000 (approximately HKD 25.5 million) after the reporting period[54] Investments and Partnerships - New Huo Solutions agreed to invest USD 10,000,000 (approximately HKD 78,000,000) in the New World Pioneer Mining Fund[4] - New Huo Solutions also committed to invest USD 15,000,000 (approximately HKD 117,000,000) in the NH MultiStrategy Crypto Fund SP[8] - The company is collaborating with Wan Fang Family Office to establish a digital family office platform for high-net-worth investors[11] - The partnership aims to bridge traditional investors with virtual asset investments, providing services such as wallet integration and inheritance consulting[11] Custodial Services - The annual cap for custodial fees under the new custodial service agreements is set at HKD 73,000,000 for the years 2021, 2022, and 2023[28] - The annual cap for the HB custodial service agreement is set at HKD 14,000,000 for the years 2021, 2022, and 2023[32] - The annual cap for the OF custodial service agreement is set at HKD 11,600,000 for the years 2021, 2022, and 2023[36] - The new custodial service agreements with Orion Financial and HB Infinite became effective on December 27, 2021, and have a term until September 30, 2024[20] - The custodial fees will be calculated based on a percentage of the asset value held in the custodial account, with a minimum withdrawal fee of 0.1% of the asset value in USDT[21] Administrative and Operational Costs - Administrative expenses increased by 160.4% from approximately HKD 128.4 million in 2021 to about HKD 334.3 million in 2022, primarily due to employee benefits and one-time relocation costs[71] - Financing costs rose by approximately 38.7% from about HKD 13.7 million in 2021 to approximately HKD 19.0 million in 2022, consistent with the increase in borrowings[73] - Total employee costs for the fiscal year 2022 amounted to approximately HKD 215.9 million, up from HKD 141.0 million in 2021, primarily due to hiring high-end professionals for virtual asset and financial-related licenses[186] Corporate Governance and Compliance - The company has adopted corporate governance practices in line with the Hong Kong Stock Exchange's listing rules, with a dual role arrangement for the chairman and CEO[189] - The board composition includes independent non-executive directors, ensuring checks and balances in decision-making[197] - The audit committee, consisting of three independent non-executive directors, reviewed the annual financial performance for the year ending September 30, 2022[195] - The company has implemented anti-money laundering policies and procedures to mitigate risks associated with its trust and custodial services[185] Future Outlook and Strategic Initiatives - The group plans to develop a new hybrid virtual asset service platform called Sinohope, combining centralized and decentralized services[79] - The group aims to leverage government support and regulatory improvements in Hong Kong to explore business opportunities in the virtual asset sector[79] - The company has implemented measures to expand its IT infrastructure and hire experienced personnel to support business growth in the virtual asset sector[180] - The company plans to continue monitoring the impact of COVID-19 on its financial situation and business performance[187]
新火科技控股(01611) - 2022 Q4 - 年度业绩