Financial Performance - The company reported a loss attributable to shareholders of HKD 162.82 million for the year ended December 31, 2022, an improvement of 11% compared to the previous year[13]. - Revenue for the year was HKD 26.26 million, a significant decrease from HKD 53.68 million in 2021[11]. - The loss from operations increased from HKD 60.08 million in 2021 to HKD 119.80 million in 2022, primarily due to an increase in expected credit loss provisions[13]. - The company recorded a segment loss of HKD 6.84 million in its treasury management business, compared to a profit of HKD 14.38 million in the previous year[14]. - The financial services segment loss increased from HKD 2.58 million in 2021 to HKD 11.92 million in 2022, attributed to increased expected credit loss provisions[14]. - For the year ended December 31, 2022, the company recorded a loss attributable to owners of HKD 162,815,000, a decrease from a loss of HKD 175,629,000 in 2021[18]. - The company's revenue for the year was HKD 26,262,000, representing a 51% decrease from HKD 53,676,000 in the previous year[20]. - Interest income from lending activities decreased to HKD 13,402,000, down from HKD 27,885,000 in 2021, a decline of 52%[19]. - The net realized gains from securities investments were HKD 10,000, compared to HKD 5,389,000 in 2021, indicating a significant drop[19]. - The expected credit loss provision for receivables increased to HKD 112,975,000, up from HKD 76,314,000 in the previous year, reflecting a substantial rise[30]. - The group reported a net loss of HKD 1,003,416,000 for the year ended December 31, 2022, compared to a loss of HKD 859,307,000 in the previous year, indicating an increase in losses of approximately 16.7%[170]. - The company's available reserves for distribution to shareholders as of December 31, 2022, amounted to HKD 97,598,000, down from HKD 241,707,000 in 2021, reflecting a decrease of about 59.6%[170]. - The board of directors did not recommend the distribution of dividends for the year ended December 31, 2022[164]. Assets and Liabilities - The total assets decreased to HKD 310.80 million in 2022 from HKD 478.46 million in 2021[12]. - Total liabilities decreased to HKD 131.64 million in 2022 from HKD 136.49 million in 2021[12]. - The net asset value dropped to HKD 179.16 million in 2022 from HKD 341.97 million in 2021[12]. - The company's equity attributable to owners decreased from HKD 341,978,000 to HKD 179,163,000 due to losses incurred during the year[50]. - The capital debt ratio increased to 56% from 29% year-on-year, calculated as total borrowings divided by equity attributable to owners[52]. - Current assets net value and current ratio dropped to HKD 16,493,000 and 1.1 times, respectively, primarily due to expected credit loss provisions[53]. Business Strategy and Operations - The company plans to slow down its business expansion and closely monitor the performance of its loan portfolio due to economic challenges[13]. - The company aims to improve its financial services performance as Hong Kong's economy is expected to rebound in 2023, despite ongoing global economic challenges[66]. - The company will continue to monitor business conditions and seek suitable investment opportunities to diversify its business and expand revenue[67]. - The company has ceased its Singapore tourism operations by selling its entire issued share capital in Harvest Well International Limited, which impacted its financial reporting[17]. Risk Management - The company faces various risks, including business risk from changing customer preferences and economic downturns, which could affect performance[74]. - Credit risk is present due to potential defaults by clients or counterparties, necessitating thorough credit assessments before loan approvals[75]. - Liquidity risk is monitored regularly to ensure the company can meet financial obligations and maintain sufficient working capital[78]. - Price risk arises from fluctuations in the fair value of financial assets, requiring ongoing portfolio reviews to mitigate potential losses[80]. - Foreign exchange risk is managed through monitoring currency trends and utilizing financial instruments for hedging[80]. - The company emphasizes the importance of retaining experienced personnel to mitigate operational risks[81]. - Legal and regulatory risks are monitored closely to avoid potential litigation and ensure compliance with laws and regulations[83]. Corporate Governance - The board of directors has maintained compliance with the GEM Listing Rules regarding the appointment of at least three independent non-executive directors, ensuring they constitute no less than one-third of the board[97]. - The board is responsible for leading and monitoring the company, establishing overall strategies, and reviewing the group's operational and financial performance[96]. - The company has adopted a director remuneration policy aimed at attracting and retaining suitable talent, with executive director remuneration based on responsibilities, skills, and market practices[115]. - The board confirmed compliance with the GEM Listing Rules regarding securities trading by directors throughout the year[134]. - The company has established a communication policy to ensure timely and equal access to information for shareholders and investors, which was reviewed and deemed effective by the board[155]. - The company has established a mechanism to ensure the board receives independent views and opinions, which is reviewed annually for effectiveness[105]. - The company has adopted a whistleblowing policy to encourage reporting of misconduct and ensure confidentiality for whistleblowers[147]. Audit and Compliance - The independent auditor's report indicated a modified opinion due to the inability to obtain accounting records from a former subsidiary, Safe2Travel, following the sale of Harvest Well[71]. - The board believes that the inability to obtain Safe2Travel's records will not impact the consolidated financial position as of December 31, 2022, nor the financial statements for the year ending December 31, 2023[72]. - The Audit Committee ensured that the financial reports complied with applicable accounting standards and GEM listing rules[119]. - The Audit Committee held five meetings during the year ended December 31, 2022, to review and discuss the audit plan and key audit matters[119]. - The Audit Committee recommended the reappointment of the external auditor for the 2023 Annual General Meeting based on their review of audit fees, processes, and independence[120]. - The company incurred audit service fees of HKD 820,000 and non-audit service fees of HKD 180,000 for the year[144]. Employee and Board Composition - As of December 31, 2022, the gender ratio of the company's employees was 59% male and 41% female, compared to 54% male and 46% female in 2021[114]. - The company has no female directors currently but aims to have at least one female board member by the end of the fiscal year ending December 31, 2024[114]. - The board consists of at least three independent non-executive directors, with a requirement that at least one-third of the members are independent[106]. - The board's diversity policy considers various factors, including gender, age, and professional experience, although it currently lacks female representation[114]. - The company emphasizes the importance of continuous professional development for all directors to ensure they contribute effectively to the board[101]. Related Party Transactions - The total brokerage commission income and other service fees paid to related parties amounted to HKD 230,463 for the year[190]. - The company's related party transactions were deemed to be conducted on normal commercial terms, with all applicable percentage ratios below 5%[191].
环球大通集团(08063) - 2022 - 年度财报