Market Performance - In 2023, the Hang Seng Index recorded an unprecedented fourth consecutive year of decline, reflecting significant market volatility and a cautious investor sentiment [10]. - The Hong Kong IPO market saw only 73 IPOs in 2023, a decrease of 19% from 2022, raising a total of HK$46.3 billion, down 56% year-on-year [21]. - The Hang Seng Index fell 14% during the Reporting Year, marking its fourth consecutive year of declines [21]. - Approximately 30 local brokerages ceased operations in 2023 due to the prolonged stock market slump in Hong Kong [24]. Financial Performance - The Group recorded a larger loss during the Reporting Year compared to the previous year, attributed to one-off share-based payment expenses and higher impairment losses on accounts receivable [26]. - For the year ended December 31, 2023, the Group's consolidated revenue was approximately HK$76.1 million, an increase of about 4% compared to HK$73.3 million in the same period of 2022 [62]. - The Group recorded a consolidated loss attributable to shareholders of approximately HK$287.8 million for the year ended December 31, 2023, compared to a loss of approximately HK$178.1 million for the same period in 2022 [64]. - The increase in loss was mainly due to an increase in impairment loss on accounts receivable of approximately HK$127.4 million and an increase in share-based payment expense of approximately HK$11.1 million [63]. Business Operations - The Group's operations include securities brokering, corporate finance, asset management, and digital assets sales [17]. - The Group's principal revenue streams from traditional brokerage and financing operations contributed approximately 79% of total revenue [29]. - The Group's asset management operations began generating revenue following the acquisition of VC International Asset Management Limited in April [30]. - The Group's insurance brokerage segment started to generate revenue as it expanded services and attracted clients from mainland China [30]. Strategic Initiatives - The Group plans to expand its presence in equity markets and explore corporate financing opportunities as the market stabilizes [10]. - The Group aims to enhance its asset management business by entering the private equity sector [10]. - The strategic approach includes pursuing investment opportunities in other business segments to diversify revenue sources and improve business resilience [13]. - The Group intends to allocate additional resources to the development of its asset management business, aiming for attractive returns in the near future [60]. Credit Risk Management - The Group applies a "three-stage model" for impairment recognition under HKFRS 9, assessing expected credit loss based on changes in credit quality and estimated economic loss [89]. - The total expected credit loss (ECL) impairment for the year ended December 31, 2023, was approximately HK$94.0 million, compared to HK$30.0 million in 2022, resulting in a net ECL impairment of approximately HK$93.4 million for the year [104][105]. - The allowance for ECL on loan receivables as of December 31, 2023, totaled HK$171.7 million, an increase from HK$78.3 million in 2022, with Stage 2 loans showing a significant rise from HK$21.7 million to HK$93.1 million [97]. - The Group's credit control policies are based on assessing the fair value of clients' collaterals and evaluating collectability [115]. Employee and Administrative Costs - The Group employed a total of 74 employees as of December 31, 2023, an increase from 72 in the previous year [143]. - Salaries and staff benefit costs for the year ended December 31, 2023, were approximately HK$55.2 million, compared to HK$40.9 million in 2022, reflecting an increase of approximately HK$14.3 million [143]. - Unallocated administrative costs increased to approximately HK$38.3 million in 2023 from HK$23.4 million in 2022, primarily due to share-based payment expenses and corporate staff costs [137]. Investments and Acquisitions - The Group completed the acquisition of VCIAM and AIF, and disposed of VC Financial Investment Holdings Limited during the year ended December 31, 2023 [166]. - The Group's investment in Hao Tian International Construction Investment Group Limited amounted to approximately HK$58.5 million, representing about 10% of the Group's total assets, with a share price increase of approximately 241% during the year [163]. - The Group entered into an exclusivity agreement for the purchase of a property portfolio for cash consideration of HK$18 million, with a deposit of HK$16 million paid [168]. Management Team - Lai Yick Fung has been the Chief Financial Officer since April 2018, bringing over 25 years of experience in auditing, accounting, and financial management [199]. - The company has a strong governance structure with Lai being a member of multiple professional accounting and governance institutes [200]. - The management team has experience in both Hong Kong and the United States, enhancing the company's operational capabilities [200].
汇盈控股(00821) - 2023 - 年度财报