Financial Performance - For the year ended December 31, 2023, the company recorded revenue of approximately HKD 37.6 million, a decrease of about 2.5% compared to HKD 38.6 million for the year ended December 31, 2022[14]. - The profit attributable to owners of the company for the year ended December 31, 2023, was approximately HKD 1.9 million, down approximately 2.7% from HKD 2.0 million for the previous year[16]. - The group's revenue for the year ended December 31, 2023, was approximately HKD 37.6 million, a decrease of about 2.5% from HKD 38.6 million in the previous year, primarily due to a significant decline in revenue from front-end trading solutions[18]. - Revenue from front-end trading solutions decreased from approximately HKD 18.5 million to about HKD 17.3 million, a decline of approximately 6.3% attributed to adverse business and economic conditions[18]. - Revenue from installation and customization services increased by approximately 9.2% to about HKD 4.6 million, driven by increased demand for customization services[18]. - The group's profit before tax for the year ended December 31, 2023, was approximately HKD 1.9 million, a decrease of about 1.2% from HKD 2.0 million in the previous year, mainly due to increased intangible asset amortization and consulting fees[21]. - Total revenue for the year ended December 31, 2023, was HKD 37,632,000, a decrease of 2.5% from HKD 38,584,000 in 2022[166]. - Operating profit for the year was HKD 2,029,000, down 2.6% from HKD 2,084,000 in the previous year[166]. - Profit attributable to owners of the company for the year was HKD 1,919,000, a decrease of 2.7% compared to HKD 1,972,000 in 2022[166]. - Total comprehensive income for the year was HKD 1,415,000, significantly up from HKD 382,000 in the previous year[166]. Economic Outlook - The economic outlook for 2024 is bleak, with ongoing macroeconomic challenges and geopolitical tensions expected to impact Hong Kong's economy[17]. - The company aims to leverage technological and innovative advancements to address challenges and capture future opportunities for sustainable growth[17]. Research and Development - The company’s R&D investment in 2023 yielded returns, with the eBrAIny AI market timing investment technology applicable to global liquid financial assets, including stocks, commodities, and foreign currencies[14]. - The company continues to rely on a business model emphasizing recurring revenue and cost control measures to maintain profitability amid a challenging business environment[14]. - The group faces risks related to R&D not keeping pace with technological advancements and potential difficulties in recovering receivables, which could adversely affect its business and financial condition[30]. Employee and Compensation - Employee costs for the year ended December 31, 2023, were approximately HKD 23.2 million, a decrease of about 2.1% from HKD 23.7 million in the previous year, primarily due to a reduction in share-based payments[23]. - As of December 31, 2023, the group had 50 full-time employees, with total employee benefits expenses amounting to approximately HKD 23.2 million, a decrease from HKD 23.8 million in 2022[40]. - The group has maintained a competitive compensation and benefits policy, regularly reviewing it to align with local market conditions[40]. - The remuneration of directors and senior management is determined based on market conditions and the company's performance[73]. - The remuneration committee has reviewed the compensation policies for directors and senior management during the reporting period[128]. Corporate Governance - The group has not experienced any changes in auditors over the past three years, with the current auditor being KPMG since June 21, 2021[42]. - The group’s independent non-executive directors bring extensive experience in finance, accounting, and law, enhancing the governance structure[46][48][49]. - The board consists of five members, including two executive directors and three independent non-executive directors[112]. - The company has adopted corporate governance practices in line with GEM Listing Rules and has complied with all applicable code provisions during the fiscal year ending December 31, 2023[111]. - The audit committee held four meetings during the year to review interim, quarterly, and annual financial performance and reports[123]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee, to assist the board in fulfilling its responsibilities[120]. Financial Position - The group's net current assets as of December 31, 2023, were approximately HKD 41.0 million, an increase from HKD 37.2 million in the previous year[29]. - The group had no interest-bearing or non-interest-bearing borrowings as of December 31, 2023, and had no bank financing or unused unsecured bank financing[29]. - The group reported a decrease in total liabilities from HKD 7,740,000 in 2022 to HKD 4,087,000 in 2023, a reduction of 47.3%[168]. - The company’s total equity increased to HKD 62,568,000 from HKD 61,028,000, reflecting a growth of 2.5%[168]. Shareholder Information - The group’s available reserves for distribution to shareholders as of December 31, 2023, were approximately HKD 54,952,000, a slight decrease from HKD 55,585,000 in 2022[65]. - The group has not set a predetermined dividend payout ratio, allowing the board to decide on dividend distributions based on various factors[56]. - The company reported a profit for the year ending December 31, 2023, with no final dividend proposed, consistent with the previous year[56]. Risk Management - The company has established a risk management and internal control system to safeguard assets and shareholder interests, with annual reviews conducted[135]. - The group has established a risk management process that involves identifying, assessing, responding to, monitoring, and reporting risks, ensuring that major risks are managed within acceptable limits[136]. - An independent external professional has been appointed to conduct an annual review and assessment of the group's risk management and internal control systems, covering financial reporting and disclosure controls[139]. Share Incentive Plans - The company has adopted a share option plan allowing for the issuance of up to 123,000,000 ordinary shares, representing 10% of the issued shares as of the report date[84]. - The maximum number of share options that can be granted to any participant in a 12-month period is limited to 1% of the company's issued shares[84]. - The company has established a long-term incentive plan that includes share option and share award schemes[72]. - The share incentive plan is valid for a period of 10 years from the adoption date, subject to early termination by the board[88]. Financial Reporting - The consolidated financial statements reflect the group's financial position as of December 31, 2023, with total receivables amounting to approximately HKD 2,433,000, representing about 3.89% of the group's net assets[156]. - The assessment of expected credit losses for receivables involves significant management judgment, particularly in evaluating the recoverability based on credit risk characteristics and historical loss rates[158]. - The audit identified the recoverability of receivables as a key audit matter due to the significant judgments and assumptions involved in determining the expected credit losses and the carrying value of receivables[158].
电子交易集团(08036) - 2023 - 年度业绩