Financial Performance - For the fiscal year ending December 31, 2023, the Group reported a loss after tax of approximately HK$22.4 million, compared to a loss of HK$4.8 million in 2022[22]. - The company reported a loss of approximately HK$5.18 million in 2023, compared to a loss of HK$1.6 million in 2022, primarily due to fluctuations in the stock market affecting fair value of listed equity investments[27]. - Administrative expenses increased to approximately HK$9.4 million in 2023 from HK$7.1 million in 2022, largely due to an increase in directors' emoluments[27]. - Other income for the year was HK$10,000, a significant decrease from HK$295,000 in 2022, which included a government subsidy of HK$192,000[35]. - The share price decreased by 35.00% during the year[51]. - Realized loss amounted to HK$17,508,000, with an unrealized loss of HK$36,253,000 at year-end[51]. - The fair value loss recognized was approximately HK$14,894,000, compared to an income of HK$0.17 million in 2022[53]. - The Group recorded unrealized losses of HK$6.906 million in 2023, compared to unrealized gains of HK$3.5 million in 2022, reflecting the adverse market conditions[33]. Investment Activities - The Group disposed of a significant portion of its listed investments, resulting in a substantial increase in gross proceeds from the disposal of financial assets at FVTPL compared to 2022[17][21]. - Gross proceeds from the disposal of financial assets at FVTPL increased significantly to HK$16.534 million in 2023 from HK$4.271 million in 2022, driven by the disposal of a substantial portion of listed investments[30]. - The Group did not make any new unlisted investments during the year[18][21]. - The company plans to focus on identifying and investing in both listed and unlisted investments with growth potential, without a specific industry focus[46]. - The Group's principal activities are investment holding, with detailed discussions found in the Management Discussion section of the annual report[91]. Financial Position - The Group's cash and cash equivalents increased to approximately HK$4,017,000 from HK$455,000 in the previous year[61]. - The gearing ratio at year-end was 66.33%, up from 25.71% in 2022[63]. - The margin loan from a securities broker decreased to approximately HK$2.415 million at year-end 2023, down from HK$10.505 million at year-end 2022, resulting in lower interest expenses[40]. - The Group held 14,635,763 shares, representing 1.61% of total shares at year-end[51]. - The Group's size relative to total assets for the investment in 康展投資 was 25.47% at year-end[59]. Management and Governance - Management emphasized the importance of vigilance and resilience to navigate ongoing economic challenges[10]. - The Board does not recommend the payment of a dividend for the Year, consistent with the previous year where no dividend was paid[92]. - The Group's remuneration committee will meet at least once a year to review the remuneration policy and packages for Directors and senior management[85]. - The Board established a schedule of matters specifically reserved for its decision and those reserved for management[199]. - The Board is responsible for corporate governance functions, including developing and reviewing policies and practices on risk management and compliance[200]. Market Environment - The overall operating environment faced uncertainties, with macroeconomic pressures including rising interest rates and geopolitical tensions impacting recovery[9][10]. - The Hang Seng index continued to decline, dropping 13.8% in 2023 after a 15.5% decline in 2022[16][20]. - The Group's principal activity is significantly affected by global economic volatility, impacting the earning power of business enterprises and stock market fluctuations[160]. Employee and Director Information - The Group had 6 employees and 5 Directors at Year End Date, with a remuneration policy that includes a 5% contribution to the MPF Scheme from both the Group and its employees[85]. - Staff remuneration accounted for approximately 57% of total administrative expenses, amounting to HK$5.469 million in 2023, up from HK$4.324 million in 2022[36]. - Each independent non-executive director received a director's fee of HK$100,000 per annum, which will remain the same for 2024[120]. - The independent non-executive directors are subject to retirement by rotation and re-election at each annual general meeting[115]. Compliance and Risk Management - The Group complies with legal and regulatory requirements, including Listing Rules and laws related to securities, taxation, and labor, ensuring operations align with applicable regulations[163]. - The Group promotes environmental protection through practices such as recycling and reducing energy consumption in daily operations[161][166]. - The Group's investment management agreement was confirmed to be fair and reasonable, conducted in the ordinary course of business[152]. Shareholder Communication - The Group maintains regular communication with shareholders through general meetings and announcements[171]. - The Company has sufficient public float as required under the Listing Rules[183].
嘉进投资国际(00310) - 2023 - 年度财报