Market Performance - The company reported a significant decline in market performance, with the Hang Seng Index dropping 2,734 points from December 31, 2022, to December 29, 2023, marking a decrease of approximately 10.7%[7] - The trading volume in the Chinese, Hong Kong, and US stock markets fell by 5.19%, 17%, and 3.38% respectively, with Hong Kong experiencing the largest decline[8] - The IPO market remained stagnant throughout the review year, causing Hong Kong's ranking in fundraising to drop to seventh place compared to other international financial centers[8] - The overall economic environment in Hong Kong has been adversely affected by global events, including wars in Europe and the Middle East, and ongoing trade tensions between China and the US[7] Financial Performance - The group's revenue for the year ended December 31, 2023, was approximately HKD 54.97 million, a decrease of about 28.7% from approximately HKD 77.11 million for the year ended December 31, 2022[18] - The net loss for the year ended December 31, 2023, was approximately HKD 25.08 million, an increase of about 3.4% compared to a net loss of approximately HKD 24.24 million for the year ended December 31, 2022[19] - Revenue from securities, futures, and insurance brokerage services accounted for approximately 28.7% and 33.8% of total revenue for the years ending December 31, 2023, and 2022, respectively[31] - Revenue from underwriting and placement services represented about 2.9% and 13.4% of total revenue for the years ending December 31, 2023, and 2022, respectively[32] - Revenue from financing services constituted approximately 36.1% and 35.0% of total revenue for the years ending December 31, 2023, and 2022, respectively[35] - The asset management services generated management and performance fees that accounted for about 13.2% and 8.7% of total revenue for the years ending December 31, 2023, and 2022, respectively[38] Business Development - The company’s virtual asset business segment began generating profits in the fourth quarter of the review year, and it is expected to become one of the main business segments in the near future[10] - The company’s license has been upgraded to conduct retail trading of virtual asset products on exchanges recognized by the Securities and Futures Commission[10] - The group plans to launch a virtual asset fund managed by its wholly-owned subsidiary, aiming to generate management and performance fees[12] - The group expects its virtual asset business to become a major driver of revenue and profitability moving forward[12] - The group aims to diversify its geographical operations to minimize regional operational risks and expand its market presence[11] Operational Efficiency - The group will invest heavily in IT infrastructure to automate processes and improve operational efficiency[16] - The group has received approval to enhance its licenses, allowing it to provide virtual asset trading and advisory services to retail clients[15] - The group has successfully obtained a Type 2 license in Japan, allowing it to expand its operations in the region[11] Employee and Management - The total employee cost for the year ended December 31, 2023, was approximately HKD 31.23 million, a decrease from HKD 32.72 million for the year ended December 31, 2022[78] - As of December 31, 2023, the group had 50 full-time employees, down from 57 as of December 31, 2022[78] - The management team includes experienced individuals with over 33 years and 50 years of experience in the securities industry, respectively[81][85] - The company encourages employees at all levels to participate in training courses for career and professional development[78] Corporate Governance - The company has fully complied with the corporate governance code as per GEM Listing Rules for the year ending December 31, 2023[106] - The board of directors consists of seven members, including three executive directors and three independent non-executive directors[108] - The company has established three permanent committees: Audit Committee, Remuneration Committee, and Nomination Committee[111] - Independent non-executive directors account for over one-third of the board, ensuring compliance with relevant guidelines[112] - The company has adopted a board diversity policy, considering various measurable factors such as gender, age, and professional experience in board composition[135] Risk Management - The board is responsible for establishing effective risk management and internal control systems to protect the group's assets and shareholder interests[147] - The risk management committee will convene to discuss cases where the borrowing amount from margin clients reaches a certain threshold, ensuring a robust risk management process[149] - The company has established a multi-tiered risk management structure to identify, assess, and monitor financial and non-financial risks[161] Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the group's main operations, including securities and futures brokerage, advisory services, and asset management, primarily based in Hong Kong[186] - The group has integrated environmental, social, and governance (ESG) risk management into its overall risk management framework, conducting regular comprehensive risk reviews and assessments[196] - The board is responsible for formulating and implementing the overall ESG strategy and policies, ensuring accountability and resource allocation for ESG initiatives[193] - The group aims to achieve sustainable development goals while considering stakeholder and community interests[192]
胜利证券(08540) - 2023 - 年度财报