Financial Performance - Total revenue for the year ended 30 September 2023 was HK$441.0 million, a decrease of 13.9% from HK$512.8 million in 2022[11]. - Net impairment allowances decreased to HK$403.6 million from HK$590.1 million, leading to a narrowed net loss of HK$160.6 million compared to HK$299.2 million in the previous year[13]. - Basic loss per share improved to HK2.38 cents from HK4.44 cents year-on-year[11]. - The Group's financing revenue was HK$323.1 million, down from HK$418.5 million in 2022, reflecting a decline of 22.8%[11]. - Brokerage services revenue increased to HK$98.2 million, up 28.7% from HK$76.4 million in 2022[11]. - The Group's financing segment revenue decreased to HK$323.1 million in 2023 from HK$418.5 million in 2022, accounting for 73.3% of total revenue[24]. - Revenue from the brokerage services segment increased to HK$98.2 million in 2023 from HK$76.4 million in 2022, representing 22.2% of total revenue[26]. - Corporate finance segment revenue rose to HK$13.3 million in 2023 from HK$11.1 million in 2022, making up 3.0% of total revenue[31]. - Revenue from the placing and underwriting segment was HK$6.5 million in 2023, slightly down from HK$6.8 million in 2022, accounting for 1.5% of total revenue[33]. Economic Environment - The macro-economic environment was volatile due to global events, affecting investment sentiment and business confidence[14]. - The cautious approach of banks and money lenders led to tightened credit control, impacting the financing market significantly[15]. - The Hang Seng Index fluctuated between a low of 14,687 and a high of 22,689 during the year, closing at 17,810 on 29 September 2023[15]. Strategic Initiatives - The Group launched the eGOi app to enhance customer trading experience and optimize retail market competitiveness[26]. - The Group plans to strengthen its wealth solutions team and expand its high net worth customer base with tailored solutions[40]. - The Group aims to optimize its eGOi application to strengthen its competitiveness in the retail market segment[41]. - The Group plans to enhance its wealth management solutions and expand its high-net-worth client base through tailored solutions and improved product offerings[41]. - The Group's strategic position in Hong Kong as a gateway to the Greater Bay Area is expected to benefit its business development amid global economic interconnectivity[41]. - The Group will maintain a prudent approach and adopt appropriate strategies to seize opportunities while ensuring stable business growth in a challenging economic environment[41]. Impairment and Risk Management - The total impairment allowances recognized for the year amounted to HK$403.6 million, a decrease from HK$590.1 million in 2022, primarily related to margin clients and borrowers[50]. - The net provision for impairment of accounts receivable from margin financing was approximately HK$204.4 million, with total gross carrying amounts of HK$1,336.8 million assessed as credit-impaired[52]. - An additional impairment allowance of approximately HK$94.9 million was recognized for eight loans, with a total gross carrying amount of approximately HK$440.8 million as of September 30, 2023, due to a decrease in fair value of pledged securities and properties[55]. - Loans and advances to twenty-six borrowers, totaling approximately HK$434.9 million, were assessed as credit-impaired, leading to impairment allowances of approximately HK$124.3 million for the year[55]. - The Group has established debt recovery procedures, including issuing demand letters and engaging external legal advisors for overdue loans[56]. - Legal proceedings on credit-impaired loans are ongoing, indicating active management of impaired assets[57]. - The Group's cautious approach includes stringent credit risk management to minimize default risks[24]. Corporate Governance - The Company is committed to high standards of corporate governance, ensuring accountability and transparency towards stakeholders[174]. - The Company complied with the Corporate Governance Code provisions, except for the separation of roles between the chairman and CEO[175]. - The Directors' remuneration policy is aligned with business strategy and market best practices, ensuring no individual determines their own remuneration[166]. - Employee remuneration is based on individual performance and market pay levels, including various components such as basic salaries and discretionary bonuses[167]. - The Board consists of six Directors, including three Executive Directors and three Independent Non-Executive Directors (INEDs), ensuring a diverse mix of skills and experience[183][188]. - The Board's gender diversity is relatively high, with three female directors, representing 50% of the Board, exceeding the target of at least 25% female directors[195][198]. - The Board has established mechanisms to ensure independent views are available, including annual meetings between the Chairperson and all INEDs without the presence of other Directors[188]. - The INEDs have confirmed their independence, and the Board considers each of them to be independent based on the annual review conducted by the Nomination Committee[197][198]. - The Company adopted a Board Diversity Policy to achieve a diverse Board with a balance of skills, experience, and perspectives relevant to the business[189]. Shareholder Information - The Board has resolved not to recommend any final dividend for the year, consistent with the previous year[60]. - The Company did not pay any interim dividend for the Year, and no final dividend was recommended, consistent with the previous year[83]. - As of September 30, 2023, the Company's reserves available for distribution to shareholders amounted to approximately HK$102.0 million in contributed surplus and HK$303.7 million in accumulated losses, compared to HK$102.0 million and HK$460.9 million respectively in 2022[96]. - The aggregate turnover attributable to the Group's five largest customers accounted for 6% of the total turnover, down from 15% in 2022, with the largest customer contributing 2% compared to 5% in the previous year[107]. Employment and Workforce - As of September 30, 2023, the Group employed 83 account executives and 139 employees, with total staff costs of approximately HK$72.0 million[58]. - The total workforce is composed of 45% female and 55% male, while senior management comprises 44% female and 56% male, reflecting appropriate gender diversity[196][198]. Related Party Transactions - The Company had transactions with connected persons during the year, where a Director had material interests[141]. - The Company confirmed compliance with the disclosure requirements under the Listing Rules regarding non-exempt CCTs, with no significant transactions involving Directors or their connected entities during the year[161]. - The Company has complied with the relevant disclosure requirements regarding related party transactions under Chapter 14A of the Listing Rules[158].
英皇资本(00717) - 2023 - 年度财报