Financial Performance - The Group reported gross proceeds from operations of HK$16,534,000 in 2023, a significant increase from HK$4,271,000 in 2022, representing a growth of 286%[6] - Total revenue for the year was HK$30,000, compared to HK$1,176,000 in 2022, indicating a decline of 97.4%[6] - The Group incurred a loss before income tax of HK$22,401,000 in 2023, compared to a loss of HK$4,807,000 in 2022, reflecting an increase in losses of 366%[6] - The total comprehensive expense attributable to owners of the Company for the year was HK$37,295,000, compared to HK$4,638,000 in 2022, marking an increase of 704%[6] - Basic loss per share for 2023 was HK(18.49) cents, compared to HK(3.97) cents in 2022, indicating a deterioration in per-share performance[6] - The loss attributable to owners of the Company for 2023 was HK$22,401,000, compared to HK$4,807,000 in 2022, indicating a significant increase in losses[31] - The Group reported a loss after tax of approximately HK$22.4 million for the Year, compared to a loss of HK$4.8 million for the Year 2022[76] Asset and Liability Management - Non-current assets decreased to HK$6,734,000 in 2023 from HK$38,518,000 in 2022, a decline of 82.5%[7] - Current assets fell to HK$14,044,000 in 2023 from HK$21,098,000 in 2022, representing a decrease of 33.4%[7] - The Group's net assets dropped to HK$6,996,000 in 2023 from HK$44,291,000 in 2022, a decline of 84.2%[7] - The net asset value per share decreased to HK$0.06 as of December 31, 2023, down from HK$0.37 in 2022, based on net assets of HK$6,996,000[53] - The gearing ratio increased to 66.33% at year-end, compared to 25.71% at the end of 2022, indicating a higher level of financial leverage[100] Revenue Sources - The Group's revenue was primarily generated from Hong Kong, with significant dividend income from investments contributing over 10% of total revenue[13] - Dividend income for the year was HK$30,000, a decrease of 97.45% compared to HK$1,176,000 in 2022[20] - The fair value changes of financial assets at FVTPL resulted in net realized losses of HK$9,081,000 (revenue in nature) and HK$22,655,000 (capital in nature) for 2023, compared to losses of HK$21,664,000 and HK$0 in 2022 respectively[22] Expenses and Costs - Staff costs increased to HK$5,469,000 in 2023 from HK$4,324,000 in 2022, reflecting a rise in salaries and benefits[31] - Administrative expenses increased to approximately HK$9.4 million in 2023 from HK$7.1 million in 2022, attributed to an increase in directors' emolument[81] - Other income for the year was HK$10,000, a significant decrease from HK$295,000 in 2022, primarily due to the absence of government subsidies[88] - Investment management expenses decreased to HK$560,000 from HK$960,000 in 2022, reflecting a reduction in fees paid to Opus Capital[90] Financing Activities - The margin loan from a securities broker decreased to approximately HK$2,415,000 in 2023 from HK$10,505,000 in 2022, secured by financial assets valued at HK$9,513,000[33] - The daily interest rate on the margin loan ranged from 12.00% to 20.00% in 2023, compared to 9.252% to 20.00% in 2022[33] - The Company issued convertible notes with a principal amount of HK$4,000,000 on 29 December 2023, maturing on 29 December 2025, with an interest rate of 8% per annum[35] - If the convertible notes are fully converted, an additional 24,096,384 ordinary shares will be issued, representing 16.59% of the enlarged issued share capital[36] - The company issued convertible bonds totaling HK$4,000,000 with an annual interest rate of 8%, maturing on December 29, 2025, which will increase the share capital by approximately 16.59% upon full conversion[39] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with its provisions, except for the separation of the roles of Chairman and Chief Executive Officer since June 10, 2021[117] - All Directors confirmed compliance with the Model Code for Securities Transactions throughout the year[119] - The company has no executive directors or Chief Executive Officer as of June 10, 2021, with a non-executive director serving as Chairman[117] - The company is in the process of appointing a suitable candidate for the role of executive director and Chief Executive Officer[117] - The company has confirmed that all directors have adhered to the securities transaction code of conduct throughout the year[122] Future Outlook and Events - Management is exploring options to raise additional equity funding to strengthen the balance sheet and capture investment opportunities[110] - The annual general meeting is scheduled for May 31, 2024, with the register of members closing from May 24 to May 31, 2024[120] - The annual report for the year ending December 31, 2023, will be published on the Stock Exchange and the company's website as soon as possible[121] - There are no major subsequent events reported after the year-end date[102] Audit and Valuation - The company was unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the consolidated financial statements due to significant matters described in the disclaimer of opinion[58] - The fair value of the investment was determined based on limited financial information and a valuation performed by an independent external valuer[60] - A fair value loss of approximately HK$14,894,000 was recognized as other comprehensive expense, primarily due to a reduction in the investment in a zinc and lead mine in the PRC[77] - The investment accounted for as financial asset at fair value through other comprehensive income represents an indirect effective minority interest of 7.94% in a zinc and lead mine in the PRC[77]
嘉进投资国际(00310) - 2023 - 年度业绩