Financial Performance - The company recorded revenue of approximately HKD 37.6 million for the year ended December 31, 2023, a decrease of about 2.5% compared to HKD 38.6 million for the previous year[8]. - Profit attributable to owners of the company decreased by approximately 2.7% to HKD 1.9 million for the year ended December 31, 2023, down from HKD 2.0 million in the previous year[10]. - Revenue from front office trading solutions decreased by approximately 6.3% to HKD 17.3 million, primarily due to adverse business and economic conditions[12]. - Revenue from installation and customization services increased by approximately 9.2% to HKD 4.6 million, driven by increased demand for customization services[12]. - Management cloud service revenue decreased by approximately 10.5% to HKD 2.8 million, while other service revenue increased by approximately 13.2% to HKD 2.4 million due to increased product sales[12]. - The company reported a total revenue of approximately HKD 54,952,000 as of December 31, 2023, a slight decrease from HKD 55,585,000 in 2022[59]. - 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[160]. - Operating profit for the year was HKD 2,029,000, down from HKD 2,084,000 in the previous year, reflecting a decline of 2.6%[160]. - Profit attributable to owners of the company for the year was HKD 1,919,000, compared to HKD 1,972,000 in 2022, representing a decrease of 2.7%[160]. - Total comprehensive income for the year was HKD 1,415,000, significantly up from HKD 382,000 in the previous year, marking an increase of 270.4%[160]. Expenses and Costs - The company reported a decrease in pre-tax profit to approximately HKD 1.9 million, down from HKD 2.0 million in the previous year, primarily due to increased intangible asset amortization and consulting fees[15]. - 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 for the year ended December 31, 2022, primarily due to a reduction in share-based payments of approximately HKD 0.9 million[17]. - Depreciation expenses for the year ended December 31, 2023, decreased to approximately HKD 2.4 million, down about 3.4% from HKD 2.5 million for the year ended December 31, 2022, mainly due to a reduction in property, plant, and equipment depreciation of approximately HKD 0.2 million[18]. - Other operating expenses for the year ended December 31, 2023, were approximately HKD 9.8 million, an increase of about 7.0% from HKD 9.2 million for the year ended December 31, 2022[19]. - The income tax expense for the year ended December 31, 2023, was approximately HKD 26,000, an increase of about HKD 29,000 compared to a tax credit of approximately HKD 3,000 for the year ended December 31, 2022[20]. Assets and Liabilities - As of December 31, 2023, the group recorded net current assets of approximately HKD 41.0 million, an increase from HKD 37.2 million as of December 31, 2022[23]. - The group had no interest-bearing or non-interest-bearing borrowings as of December 31, 2023, and had no bank financing or undrawn unsecured bank financing of approximately HKD 0 as of December 31, 2022[23]. - The group did not make any significant investments or acquisitions during the year ended December 31, 2023, or the year ended December 31, 2022[27]. - As of December 31, 2023, the group had no significant capital commitments or contingent liabilities[28]. - The company’s total equity increased to HKD 62,568,000 from HKD 61,028,000, reflecting a growth of 2.5%[162]. - Current assets net value increased to HKD 40,958,000 from HKD 37,173,000, reflecting a growth of 7.5%[162]. - Non-current assets decreased to HKD 21,772,000 from HKD 24,501,000, a decline of 11.1%[162]. Corporate Governance and Leadership - The company has a strong leadership team with extensive experience in finance, technology, and legal sectors, enhancing its strategic capabilities[39][40][42][44]. - The board of directors is committed to maintaining high standards of corporate governance and transparency in its operations[40]. - The independent non-executive directors bring over 30 years of experience in accounting, auditing, and finance, ensuring robust governance[40][42]. - The company has established a comprehensive risk management framework to support its trading operations and investment strategies[38]. - The board consists of five members, including two executive directors and three independent non-executive directors, with no significant relationships among them[106]. - The company has appointed a compliance advisor to ensure adherence to applicable laws and GEM Listing Rules[96]. - The company has established compliance procedures to monitor and ensure adherence to relevant laws and regulations[98]. - The company has adopted corporate governance practices in line with GEM Listing Rules and believes it has complied with all applicable code provisions during the reporting period[105]. Shareholder Information - The company did not declare a final dividend for the year ending December 31, 2023, consistent with the previous year[50]. - The company has a general dividend policy allowing for the declaration and distribution of dividends at the discretion of the board, with no preset payout ratio[50]. - The company’s reserves available for distribution to shareholders were approximately HKD 54,952,000 as of December 31, 2023[59]. - The company has not engaged in any purchases, sales, or redemption of its securities during the fiscal year ending December 31, 2023[56]. - The company has adopted a share option scheme allowing for the issuance of up to 123,000,000 ordinary shares, equivalent to 10% of the issued shares as of the report date[78]. Risk Management - The group has established a risk management and internal control system to safeguard assets and shareholder interests, with annual reviews conducted[129]. - The group has implemented a risk management process that involves identifying, assessing, responding to, monitoring, and reporting risks, ensuring that major risks are managed within acceptable limits[130]. - 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[133]. - The board and audit committee have reviewed the internal control assessment report and confirmed the effectiveness of the group's risk management and internal control systems[134]. Future Outlook - The company plans to continue leveraging technology and innovation to address ongoing macroeconomic challenges and seek future growth opportunities[11]. - The economic outlook for 2024 remains bleak due to ongoing geopolitical tensions and economic challenges[11]. - The company is exploring partnerships with local players in other markets for the application of its technology[8]. - The company plans to continue evaluating the impact of new accounting standards that will be effective in 2024, which may affect future financial reporting[173].
电子交易集团(08036) - 2023 - 年度财报