Financial Performance - The Group recorded a loss of approximately HK$15.8 million for the year ended December 31, 2023, a reduction of approximately HK$14.9 million compared to a loss of approximately HK$30.7 million for the previous year[21]. - Total revenue for the year ended December 31, 2023, was approximately HK$150.0 million, a decrease of approximately HK$30.8 million from the previous year[22]. - Revenue from the trading of motor vehicles segment was approximately HK$148.3 million for the year ended December 31, 2023, down from approximately HK$180.4 million in 2022, representing a decrease of approximately HK$32.1 million[23]. - The Group recorded a gain on the disposal of financial assets at fair value through profit or loss, contributing to the reduction in loss for the year[21]. - The Group's financial performance reflects the challenges faced in the automotive sector and the need for strategic adjustments moving forward[21]. - The Group recorded total revenue of approximately HK$150.0 million for the year ended 31 December 2023, a decrease of approximately HK$30.8 million or 17.0% compared to HK$180.8 million in the previous year[35]. - The Group reported a loss of approximately HK$15.8 million for the year, a decrease of approximately 48.5% from a loss of approximately HK$30.7 million in the previous year[36]. - The trading of motor vehicles segment incurred a loss of approximately HK$5.9 million, compared to a loss of approximately HK$1.7 million in the previous year[52]. - The brokerage and securities margin financing service segment recorded total revenue of approximately HK$0.4 million, with losses increasing to approximately HK$3.7 million from HK$0.8 million last year[53]. Revenue Sources - Agency and service fees income from accessories sourcing was approximately HK$1.4 million for the year ended December 31, 2023, compared to approximately HK$8,000 in the previous year[23]. - Nearly 99.8% of the Group's revenue as of December 31, 2023, was derived from the trading of motor vehicles, agency services, and accessories sourcing in the PRC[72]. - The Group's revenue from trading of motor vehicles where it acts as principal was approximately HK$148.3 million for 2023[23]. - Revenue from the trading of motor vehicles decreased by approximately 17.0% to HK$149.7 million for the year, down from HK$180.4 million in the previous year[52]. Market Conditions - The decrease in revenue was primarily due to the impact of the COVID-19 pandemic, the ongoing Sino-US trade war, and changes in PRC government policy affecting the automotive industry[23]. - The Group's performance in the trading of motor vehicles has been significantly affected by market competition and a shift towards new energy vehicles[23]. - The automotive industry is expected to face intensified competition and a shrinking demand for petrol vehicles in the coming years[23]. Assets and Liabilities - The Group's current assets as of 31 December 2023 were approximately HK$220.3 million, an increase from approximately HK$201.3 million as of 31 December 2022[43]. - The liquidity ratio (current assets over current liabilities) decreased to 1.8 times from 2.2 times in the previous year[43]. - Total other borrowings increased to HK$30 million as of 31 December 2023, up from HK$25 million in the previous year[44]. - The gearing ratio as of 31 December 2023 was 106.8%, compared to 69.5% in the previous year[44]. - Equity attributable to the owners of the Company decreased by approximately HK$19.2 million or 14.0% to approximately HK$118.1 million as of 31 December 2023[45]. - The Group's cash and bank balances as of December 31, 2023, were approximately HK$24.8 million, down from approximately HK$38.9 million in the previous year[48]. - The Group's total borrowings amounted to approximately HK$30 million as of December 31, 2023, compared to HK$25 million in 2022, with a capital debt ratio of 106.8% versus 69.5% last year[49]. Corporate Governance - The company is committed to high standards of corporate governance, with a detailed report provided in the annual report[172]. - The board of directors consists of two executive and five non-executive directors, including four independent non-executive directors, ensuring a majority of independent oversight[197]. - The company has adopted a code of conduct for Directors' securities transactions that meets or exceeds the standards set out in GEM Listing Rules[170]. - The company has maintained a sufficient prescribed public float of its issued shares under the GEM Listing Rules as of the report date[182]. - The Directors have no other financial, business, family, or other material relationships with one another, ensuring independence[200]. Future Plans - The Company plans to introduce more new energy vehicles and expand its duty-free car business in Hainan province to enhance market performance in the coming year[74]. - The Group aims to expand its revenue sources by developing other businesses and seeking new opportunities[81]. - The Group has no concrete plans for other material investments or acquisitions for the year under review[70]. Shareholder Information - The Directors do not recommend the payment of a dividend for the year ended December 31, 2023, consistent with the previous year[111]. - The Company's reserves available for distribution were HK$Nil as of December 31, 2023[114]. - As of December 31, 2023, the company has a distributable reserve of zero HKD, indicating no available funds for dividend distribution to shareholders[121]. - Wang Jiawei, the Chairman and CEO, holds 2,123,395,935 shares, representing approximately 27.40% of the company's total shareholding[131]. - Lai Yuk Mui and Liu Runtong hold 2,780,127 shares (0.04%) and 2,646,000 shares (0.03%) respectively[131]. Legal Matters - Sinofortune Education applied for compulsory execution against Minqin Quantum for failing to repay refundable earnest money of RMB20,000,000 by 31 December 2020[144]. - Minqin Quantum has failed to pay an approximate sum of RMB49,500,000 in penalties and other fees by 31 December 2023 as adjudicated under the Judgement[160]. - Sinofortune Education has the right to apply for compulsory execution for the sale of 100% equity interest of Minqin Quantum due to non-fulfillment of obligations by the Five Defendants[161]. Management and Staff - As of December 31, 2023, the Group's total staff costs amounted to approximately HK$13.7 million, a slight decrease from HK$13.8 million in 2022, with a workforce of 46 employees[71]. - The newly appointed independent non-executive director, Lee Kwun Kwan, joined on May 8, 2023[199].
华亿金控(08123) - 2023 - 年度财报