Financial Performance - Revenue decreased by approximately 42.3% to HK$73.23 million in 2021, down from HK$126.83 million in 2020[8] - Gross profit for the year decreased by approximately 98.1% to HK$1.44 million, compared to HK$73.93 million in 2020[9] - Net loss for the year increased to HK$122.62 million from HK$19.60 million in 2020, marking a significant decline in profitability[10] - EBITDA turned from a profit of HK$17.19 million in 2020 to a loss of HK$101.15 million in 2021[10] - Basic loss per share increased from HK1.69 cents in 2020 to HK8.18 cents in 2021[10] - The consolidated net loss for the Group was HK$122.62 million, compared to a loss of HK$19.60 million for the year ended 31 December 2020[19] - The decrease in overall revenue was primarily due to losses on disposal and changes in fair value on financial investments amounting to HK$82.13 million[18] - The Group recorded a loss from operations of HK$107.22 million after a provision for post-completion guarantee of HK$58.57 million[9] Asset Management and Investment - Assets under management (AUM) as of 31 December 2021 amounted to US$668 million, with leveraged AUM reaching US$924 million and the number of funds under management increasing to 16[15] - Asset management fee income was recorded at HK$85.45 million, contributing to a segment profit of HK$30.48 million for the Year Under Review[15] - Investment advisory services fee income amounted to HK$4.03 million, up from HK$1.13 million for the year ended 31 December 2020[15] - The Group's strategy in developing asset management and financial advisory operations is showing positive results, contributing significantly to operational performance[16] - The Group's financial advisory services target high-net-worth individuals and institutional investors, focusing on those with assets exceeding US$1 million[32] - The Group launched three new IPO Funds during the Year Under Review, with fund sizes ranging from US$3 million to US$18 million[40][41] - Asset management income for the Year Under Review was HK$85.45 million, up from HK$66.75 million in the previous year, representing a growth of approximately 28%[42][44] - Investment advisory services generated income of HK$4.03 million, significantly increasing from HK$1.13 million in the previous year, marking a growth of over 256%[43][45] Trading Performance - Sales of goods increased significantly by 449.2% to HK$46.51 million in 2021, compared to HK$8.47 million in 2020[8] - The Trading of Wine and Beverage segment recorded a turnover of HK$46.51 million, significantly up from HK$8.47 million for the year ended 31 December 2020[22] - Profit attributable to the Trading of Wine and Beverage segment was HK$2.12 million, compared to a loss of HK$2.95 million for the year ended 31 December 2020[22] - The Group expanded its wine product portfolio to include white wine, champagne, sparkling wine, whisky, Moutai, and Chinese tea leaves to attract younger consumers[49][51] - Sales channels for the Group include direct sales, online sales, and wholesale, maintaining alliances with reputable distributors for premium wine sales[50][52] Financial Position - Total assets decreased by 43.1% to HK$544.67 million in 2021, down from HK$956.62 million in 2020[8] - Net assets decreased by 24.7% to HK$372.79 million in 2021, compared to HK$495.00 million in 2020[8] - The Group recorded a net current asset of HK$367.21 million as of December 31, 2021, down from HK$461.28 million as of December 31, 2020[108] - The current ratio improved to 3.1 times as of December 31, 2021, compared to 2.0 times as of December 31, 2020, based on current assets of HK$539.09 million and current liabilities of HK$171.88 million[113] - The Group's total borrowings decreased to HK$91.59 million as of December 31, 2021, from HK$430.04 million as of December 31, 2020, resulting in a gearing ratio of 24.6%[107] - The Group's bank balances and cash amounted to HK$313.01 million as of December 31, 2021, compared to HK$338.01 million as of December 31, 2020[107] Corporate Governance - The Board has adopted the Corporate Governance Code and complied with it during the year ended December 31, 2021[130] - The Company has established a code of conduct applicable to employees and Directors, ensuring compliance with legal and regulatory requirements[137] - The Board consists of a mix of executive, non-executive, and independent non-executive directors, with recent appointments made in 2021[132] - The Company has a structured approach to corporate governance, ensuring transparency and accountability in its operations[138] - The Audit Committee held two meetings during the year to discuss pre-audit planning and review interim and annual results, as well as internal control and risk management issues[160] - The Remuneration Committee conducted four meetings and recommended the remuneration for Directors and senior management[163] - The Nomination Committee was established in March 2012 and reviewed the structure, size, and composition of the Board, assessing the independence of Independent non-executive Directors[164][166] Future Plans and Strategies - The Group aims to focus on the development of its asset management business, targeting the structuring of more project funds[26][27] - Strategic acquisitions or joint ventures with PRC corporations will be pursued to build more licensed business in China[27][28] - The Group plans to continue expanding its wine product portfolio and will accept cryptocurrency as a settlement method for trading in 2022[29] - The Group plans to allocate more resources to develop its securities trading business, which is its primary revenue source[121] - The Group intends to expand its licensed business in the PRC through strategic acquisitions or joint ventures with local corporations[120]
东建国际(00329) - 2021 - 年度财报