Financial Performance - The company's revenue for the year ended December 31, 2022, decreased to approximately HKD 47,137,000, a decline of 45.2% compared to HKD 85,991,000 for the year ended December 31, 2021[15]. - The net loss for the year was approximately HKD 15,605,000, an improvement from a net loss of HKD 18,755,000 in the previous year[15]. - The company recorded a fair value loss on investment properties of approximately HKD 12,860,000, compared to a fair value gain of HKD 16,368,000 in the previous year[15]. - Credit loss provisions for trade receivables and other receivables amounted to approximately HKD 36,823,000, significantly higher than HKD 2,844,000 in the previous year[15]. - The basic and diluted loss per share for the year was HKD 0.08, compared to HKD 0.18 in the previous year[16]. - The high-tech business segment generated revenue of approximately HKD 16,071,000 for the year ended December 31, 2022, a decrease from HKD 48,728,000 in 2021, and recorded a loss of approximately HKD 18,917,000 compared to a loss of HKD 23,473,000 in 2021[18]. - The decline in revenue was primarily due to recurring COVID-19 restrictions in China, which impacted operations significantly[18]. - The property investment segment recorded rental income of approximately HKD 7,108,000 for the year ended December 31, 2022, slightly up from HKD 7,016,000 in 2021, but faced a fair value loss of approximately HKD 12,860,000 compared to a fair value gain of HKD 16,368,000 in 2021[23]. - The securities trading and investment segment achieved a profit of approximately HKD 38,430,000 for the year ended December 31, 2022, a significant turnaround from a loss of HKD 12,500,000 in 2021, driven by fair value gains of approximately HKD 47,130,000[27]. - Dividend income from securities was approximately HKD 590,000, down from HKD 3,815,000 in 2021, while interest income from debt instruments was approximately HKD 426,000, up from HKD 213,000 in 2021[27]. - The group recorded an expected credit loss provision of approximately HKD 4,990,000 for corporate bond investments, which had a carrying value of approximately HKD 15,010,000 as of December 31, 2022[27]. - The expected credit loss for receivables and interest as of December 31, 2022, is approximately HKD 31,491,000, an increase from HKD 21,504,000 in 2021[61]. - The expected credit loss provision for receivables and interest was approximately HKD 9,987,000 for the year ended December 31, 2022, compared to a reversal of approximately HKD 206,000 in 2021[61]. Business Strategy and Operations - The company plans to continue its securities brokerage business, leveraging the return of Chinese concept stocks to attract capital inflow into Hong Kong[10]. - Future World Securities has obtained licenses to conduct regulated activities, including securities trading and advisory services[10]. - The company aims to develop a diversified portfolio of innovative technology products to mitigate the impact of COVID-19 on its high-tech business segment[9]. - Future World Holdings is focused on expanding its core businesses, including high-tech operations, property investment, and financing services[9]. - The group aims to continue seeking opportunities to expand and optimize its investment property portfolio for stable rental income and capital appreciation[24]. - The company plans to utilize funds raised from a rights issue to invest in a Hong Kong securities brokerage firm to expand its margin financing services[64]. - The company aims to expand its client base by providing margin financing services through its wholly-owned subsidiary, Future World Securities[64]. - The company has engaged in a strategy to expand its lending business through its wholly-owned subsidiary, World Finance, which holds a valid money lender license in Hong Kong[46]. Management and Governance - The company’s management team has extensive experience in accounting, corporate development, and financing management, overseeing the operations of the lending business[47]. - The company has a diverse board with members having extensive backgrounds in finance, law, and investment management[103][104][105]. - The company is focused on expanding its market presence and enhancing its investment strategies through experienced leadership[95][98][101]. - The board's composition reflects a strong emphasis on financial expertise and strategic management, which is crucial for future growth[95][103]. - The company emphasizes ongoing professional development for all directors to enhance their knowledge and skills[186]. - The company has established a remuneration committee, nomination committee, and audit committee, adhering to corporate governance codes[187]. - The company emphasizes the importance of effective communication with investors and stakeholders to create long-term sustainable growth[175]. - The audit committee has met with external auditors to review the audited consolidated financial statements for the year[168]. - The company has received annual independence confirmations from all independent non-executive directors[164]. - The company will propose the reappointment of its auditor at the upcoming annual general meeting[169]. Shareholder Information - The group had a total current asset value of approximately HKD 404,262,000 as of December 31, 2022, compared to HKD 110,335,000 in 2021[70]. - The company confirmed compliance with the listing rules regarding loans granted to related borrowers as of December 31, 2022[57]. - The company has a total of 116,095,491 issued shares as of December 31, 2022[120]. - The company recorded significant shareholder interests, with the largest being Zhu Wuqun holding 11,715,000 shares, representing 10.09% of the issued share capital[151]. - The second-largest shareholder, Liu Mingzhong, held 11,320,000 shares, accounting for 9.75% of the issued share capital[151]. - The major shareholder, Yanjia Group, holds approximately 8.14% of the issued share capital and operates independently from the company[156]. - The company has complied with the disclosure requirements under the relevant listing rules regarding related party transactions[161]. - The group identified significant risks including economic, business and strategic, financial, and environmental, social, and governance risks that could adversely affect future performance[115]. Financial Position - As of December 31, 2022, the interest income generated from the lending business was approximately HKD 21,063,000, a decrease of about 5.7% from HKD 22,330,000 in 2021[47]. - The lending business reported an operating loss of approximately HKD 5,527,000 for the year ended December 31, 2022, compared to an operating profit of HKD 19,987,000 in 2021[47]. - As of December 31, 2022, total receivables from loans and interest amounted to HKD 231,953,000, down from HKD 353,749,000 in 2021[49]. - The annual interest rates for loans ranged from 5.0% to 7.7% as of December 31, 2022, compared to 5.0% to 7.0% in 2021[49]. - The total borrowings amounted to approximately HKD 372,583,000 as of December 31, 2022, a decrease from HKD 408,206,000 in 2021[68]. - The current ratio improved to approximately 0.93 as of December 31, 2022, compared to 0.24 in the previous year[70]. - The capital debt ratio was 39.83% as of December 31, 2022, down from 44.60% in 2021[69]. - The net asset value as of December 31, 2022, was approximately HKD 935,461,000, compared to HKD 915,252,000 in 2021[69]. - The company completed a rights issue on May 20, 2022, raising approximately HKD 52,500,000, with 65% allocated for future investments in securities[79]. - The company has utilized approximately HKD 34,000,000 (65% of the net proceeds) for the investment in Future World Securities, which is currently awaiting regulatory approval from the Securities and Futures Commission[80]. - As of the report date, the unutilized net proceeds amount to approximately HKD 34,000,000, with HKD 26,000,000 already used for acquiring listed equity in Hong Kong and subscribing to short-term notes[82]. - The company plans to allocate approximately HKD 8,000,000 from the unutilized net proceeds for the acquisition of a securities brokerage firm by the end of the fiscal year ending December 31, 2023[82]. Corporate Actions and Changes - The company has not purchased, sold, or redeemed any of its shares during the year ended December 31, 2022[121]. - The company has not entered into any significant management or administrative contracts during the year 2022[163]. - The company did not comply with listing rules regarding the appointment of at least three independent non-executive directors until December 9, 2022, when Ms. Xia Liping was appointed[181]. - The company appointed several new directors in 2022, including Mr. Su Wei and Mr. Yuan Yifeng on July 1 and August 19, respectively[184]. - The company has changed the trading board lot size from 20,000 shares to 4,000 shares, reducing the monetary value from HKD 8,000 to HKD 1,600[83]. - The company has issued 7.5% bonds totaling HKD 20,000,000, maturing on October 25, 2025, under a subscription agreement with an independent third party[88]. - The company completed the sale of a 55% stake in Jiangsu Weilai Dongnan Technology Co., Ltd. for RMB 1, with the transaction finalized on February 16, 2022[89]. Risk Management - The company has implemented a credit policy and procedures manual to assess potential borrowers' risks and financial conditions[54]. - The company will conduct financial reviews of clients to assess the need for adjustments to credit limits and collateral[59]. - The company’s management committee must approve all loan applications after a thorough credit assessment process[56]. - The company emphasizes the importance of professional qualifications, skills, knowledge, and relevant experience in selecting board candidates[198]. - The Nomination Policy outlines the main selection criteria and procedures for appointing or reappointing board members[195]. - The evaluation of independent non-executive directors' independence is a key responsibility of the Nomination Committee[200].
未来世界控股(00572) - 2022 - 年度财报