CROSS-HAR(HOLD)(00032)2023-03-24 11:53Financial Performance - The group recorded a loss attributable to shareholders of HKD 445.3 million for the year ended December 31, 2022, compared to a loss of HKD 49.2 million in 2021, primarily due to a net loss in financial management business of HKD 861.0 million[4]. - Total revenue for the year was HKD 702.2 million, a slight increase from HKD 699.7 million in 2021, with customer contract revenue at HKD 572.9 million, up from HKD 552.9 million[7]. - The basic and diluted loss per share for the year was HKD 1.19, compared to a loss of HKD 0.13 per share in 2021[4]. - Operating loss for the year was HKD 576.1 million, compared to an operating loss of HKD 448.5 million in 2021[7]. - The group reported a loss before tax of HKD 326,664,000 for 2022, compared to a profit of HKD 57,086,000 in 2021, indicating a significant decline in profitability[26]. - The group’s total comprehensive loss for the year was HKD 242.7 million, compared to a loss of HKD 1.6 billion in 2021[10]. Revenue and Income Sources - Financial management business revenue increased to HKD 57.6 million from HKD 29.9 million in the previous year[7]. - Revenue from driving school operations increased to HKD 556,888,000 in 2022 from HKD 537,787,000 in 2021, reflecting a growth of about 3.1%[24]. - The segment revenue from electronic road toll facilities rose to HKD 13,500,000 in 2022, compared to HKD 12,600,000 in 2021, marking an increase of approximately 7.1%[24]. - Dividend income from equity instruments increased significantly to HKD 53,822,000 in 2022 from HKD 27,503,000 in 2021, representing a growth of about 95.9%[24]. - Interest income from debt securities measured at fair value through profit or loss rose to HKD 9,814,000 in 2022, up from HKD 3,874,000 in 2021, an increase of approximately 153.5%[24]. Assets and Liabilities - Total assets less current liabilities decreased to HKD 7,057,551,000 in 2022 from HKD 7,567,350,000 in 2021, representing a decline of approximately 6.7%[12]. - The company's equity attributable to shareholders decreased to HKD 6,860,316,000 in 2022 from HKD 7,336,578,000 in 2021, reflecting a decline of approximately 6.5%[12]. - Cash and cash equivalents decreased to HKD 2,453,206,000 in 2022 from HKD 2,805,940,000 in 2021, a reduction of approximately 12.5%[11]. - The company reported trade receivables and other receivables of HKD 158,405,000 in 2022, significantly up from HKD 45,172,000 in 2021, an increase of approximately 250.5%[11]. - The company’s total assets amounted to HKD 7,043,600,000 in 2022, down from HKD 7,537,973,000 in 2021, a decrease of about 6.6%[12]. Impairments and Losses - The company's financial assets impairment loss was HKD 62.9 million, up from HKD 37.6 million in 2021[7]. - The group recognized a total impairment provision of HKD 85,000,000 for overdue interest-bearing instruments, reflecting a significant increase in financial risk[37]. - The fair value changes of financial assets through profit or loss included a loss of HKD 480,831,000 for non-listed fund investments in 2022, compared to a loss of HKD 20,892,000 in 2021[28]. - The company reported a net loss of HKD 615,080,000 from the sale of properties, plant, and equipment in 2022, compared to a loss of HKD 532,636,000 in 2021[28]. Dividends - The board proposed a final dividend of HKD 0.24 per share, maintaining the total annual dividend at HKD 0.42 per share, consistent with 2021, amounting to a total dividend payout of approximately HKD 156.5 million[5]. - The group declared an interim dividend of HKD 0.18 per share for 2022, consistent with 2021, totaling HKD 67,084,000[43]. Economic and Market Conditions - The overall economic environment in Hong Kong faced challenges, with GDP contracting by 4.2% in the fourth quarter of 2022, influenced by the COVID-19 pandemic and global economic conditions[46]. - The group anticipates a recovery in consumer spending and foreign investment in 2023, although global economic growth may continue to slow[46]. - The group faces potential risks from geopolitical tensions and inflation, which could adversely affect overall performance and financial condition[46]. Strategic Focus and Future Outlook - Management is focusing on expanding business opportunities in smart city services, including smart transportation and logistics[48]. - The company plans to continue its proactive marketing strategies and efforts in market segmentation to maintain its leading position in the market[47]. - The outlook for 2023 is cautious, with expectations of improved market conditions as inflation may have peaked and interest rate hikes could slow down[53].