Financial Performance - Revenue for the year ended November 30, 2022, was HKD 60,244,000, a decrease of 3% compared to HKD 62,357,000 in the previous year[12]. - Annual profit for the year ended November 30, 2022, was HKD 9,110,000, representing a 42% decrease from HKD 15,640,000 in the prior year[12]. - The gross profit margin for the year ended November 30, 2022, was 59.2%, a slight decrease of 1.1% from 60.3% in the previous year[12]. - Operating expenses increased by 28% to approximately HKD 25,350,000, up from HKD 19,840,000 in the previous year, primarily due to increased sales and marketing expenses[18]. - Net profit for the year was approximately HKD 9,110,000, down from HKD 15,640,000 in the same period last year[18]. - Revenue sources included approximately HKD 40,220,000 (67%) from software licensing and related services, HKD 12,025,000 (20%) from maintenance services, and HKD 7,353,000 (12%) from fintech resource services[18]. Assets and Liabilities - Total assets increased by 26% to HKD 65,023,000 from HKD 51,613,000 year-on-year[12]. - Net assets rose by 77% to HKD 20,957,000 compared to HKD 11,847,000 in the previous year[12]. - The group's liabilities to related companies amounted to HKD 11,401,000 due within five years as of November 30, 2022, compared to HKD 8,754,000 in the previous year, reflecting a 30% increase[29]. - The group's debt-to-asset ratio was 0.68 as of November 30, 2022, indicating a significant reliance on debt financing[30]. Cash Flow and Investments - Cash and cash equivalents decreased by 78% to HKD 7,674,000 from HKD 35,520,000 year-on-year[12]. - The company completed the acquisition of Chuangzhi Management Consulting Limited for HKD 4,200,000, with HKD 2,600,000 paid in cash and the remaining HKD 1,600,000 contingent on profitability over 18 months[47]. - There were no major investments held by the group for the year ending November 30, 2022, following the acquisition of a consulting firm in the previous year[46]. Business Strategy and Outlook - The company anticipates a rapid recovery of the Hong Kong economy in 2023 as travel between mainland China and Hong Kong normalizes[10]. - The company aims to generate more recurring revenue and expand its product line into new sectors and financial industries in 2023[10]. - The research and development department is focused on developing innovative solutions in the fintech and regtech sectors[10]. - The company plans to launch more new technology solutions to the market in 2023 as part of its ongoing R&D efforts[10]. - The group is optimistic about the future of regulatory technology and information technology-related services as the economy in Hong Kong is expected to gradually recover in 2023[21]. Employee and Workforce - The employee turnover rate for the year was 48%, with a notable 88% turnover rate among female employees[147]. - The company employs a total of 25 staff members, with a gender distribution of 17 males and 8 females[143]. - The company offers competitive compensation and benefits to retain talent, with one-third of employees having worked for the company for over 5 years[149]. - The percentage of trained employees this year is approximately 16%, with an average training duration of 1.76 hours per employee[157]. Corporate Governance - The board of directors includes independent non-executive directors who have served for over nine years, requiring annual re-election by shareholders[77]. - The company has not established an internal audit function since its listing in 2000[184]. - The internal control system is reviewed annually, focusing on financial, operational, compliance, and risk management controls[186]. - The company has adopted relevant amendments to the corporate governance code as of January 1, 2022[179]. Environmental, Social, and Governance (ESG) - The group is committed to sustainable development and recognizes its importance to business and community[107]. - The ESG report covers the group's performance from December 1, 2021, to November 30, 2022[108]. - The total greenhouse gas emissions for the year 2022 amounted to 41.9 tons of CO2 equivalent, with a density of 1.68 tons of CO2 equivalent per employee[124]. - The company aims to maintain or reduce the total greenhouse gas emissions density over the next three years, using 2021 as the baseline[123]. - The company promotes a paperless workplace by implementing policies to reduce paper consumption, including double-sided printing and digital communication[128].
辰罡科技(08131) - 2022 - 年度财报