Financial Performance - Revenue for the year ended December 31, 2023, increased by 192.2% to HK$89.55 million, compared to HK$30.65 million in 2022[13] - Income from asset management services rose by 51.2% to HK$42.75 million, up from HK$28.27 million in the previous year[13] - Net loss for the year decreased significantly from HK$78.21 million in 2022 to HK$13.24 million in 2023, representing an 83.1% improvement[14] - EBITDA improved to a loss of HK$1.19 million in 2023, compared to a loss of HK$65.86 million in 2022, marking a 98.2% reduction in losses[14] - Loss per share (basic) decreased from HK5.05 cents in 2022 to HK0.87 cents in 2023, reflecting an 82.8% improvement[15] - The Group incurred a consolidated net loss of HK$13.24 million, a substantial decrease from HK$78.21 million in 2022, primarily due to increased total revenue and a net reversal of impairment loss on financial assets of HK$3.63 million[28] - Total revenue increased to HK$89.55 million, up from HK$30.65 million for the year ended 31 December 2022, primarily driven by growth in asset management services and trading of wines and beverages[54] Asset Management - The company is engaged in asset management, investment advisory, securities underwriting, and trading of wines and beverages[19] - As of December 31, 2023, total assets under management (AUM) by OCI Asset Management amounted to US$149 million, down from US$270 million in 2022, while subscription amounts decreased to US$406 million from US$557 million[20] - The Group's asset management subsidiary, OCIAM, managed 10 funds as of December 31, 2023, down from 11 funds the previous year[20] - The Group plans to focus on the development of its asset management business, optimizing its investment portfolio, and exploring opportunities in crypto-assets to expand its asset management services[32][33] - The Group aims to enhance performance by exploring potential business opportunities in the PRC, including establishing Qualified Domestic Limited Partnerships[136] - The Group plans to explore potential development opportunities related to asset management of crypto-assets to expand its asset management business[135] Investments and Trading - The company recognized net income from securities trading and investments of HK$9.73 million in 2023, a turnaround from a net loss of HK$29.06 million in 2022[13] - Revenue from trading of wines and beverages rose to HK$36.64 million, compared to HK$29.34 million in the previous year[26] - The Group's investment advisory services fee income was HK$0.44 million for the Year Under Review, slightly down from HK$0.53 million in the previous year[63] - The Group's joint venture, Shandong Civil Aviation Dongsheng, contributed HK$1.74 million in profit share for the Year Under Review, up from HK$1.01 million in the previous year[58] - The Group's underwriting and placing services did not generate any income during the Year Under Review, compared to HK$1.56 million in the previous year[64] Economic Outlook - The Group anticipates improvements in the economy and investment sentiment due to expected declines in interest rates and supportive policies from the Hong Kong government[31] - The Group expects an improvement in economic and investment sentiments in 2024 due to expected declines in interest rates and supportive government policies in Hong Kong[127] Corporate Governance - The Board has adopted the Corporate Governance Code and complied with it, except for a deviation regarding the roles of chairman and CEO[157] - The company has established an audit committee with at least three members, including one independent non-executive director with appropriate qualifications, in compliance with Listing Rules[170] - The remuneration committee is chaired by an independent non-executive director and comprises a majority of independent non-executive directors, meeting the requirements of Listing Rules[170] - The Company has established a mechanism to ensure independent viewpoints are considered in Board meetings[177] - The Company reviews and monitors compliance with legal and regulatory requirements as part of its corporate governance practices[182] Financial Position - Total assets decreased by 22.5% to HK$323.58 million in 2023, down from HK$417.56 million in 2022[13] - Net assets also declined by 4.7% to HK$279.98 million, compared to HK$293.64 million in the previous year[13] - The Group's total equity as of December 31, 2023, was HK$279.98 million, down from HK$293.64 million in 2022[117] - As of December 31, 2023, the Group's bank balances and cash amounted to HK$104.79 million, a decrease of 54.5% from HK$230.57 million as of December 31, 2022[121] - The current ratio improved to 8.0 times as of December 31, 2023, compared to 3.4 times as of December 31, 2022[122] Employee Relations - The Group employed 1 employee in the PRC and 25 employees in Hong Kong as of December 31, 2023[152] - The Group has maintained good relationships with its staff and has not experienced major disruptions due to labor disputes[152] Strategic Initiatives - The Group plans to expand its product offerings beyond wine to include a broader range of beverages, supported by marketing and promotional activities[140] - The Group will continue to expand its wine product portfolio and conduct marketing activities to boost sales[137] - The Group acquired a 60% equity interest in Shandong Civil Aviation Dongsheng Investment Management Co., Ltd. to enhance its asset management services in China[36]
东建国际(00329) - 2023 - 年度财报