Financial Performance - 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[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]. - A fair value loss of approximately HK$14.9 million was recognized as other comprehensive expense, compared to an income of HK$0.17 million in 2022[23]. - The company recorded unrealized losses of HK$6.91 million in 2023, compared to unrealized gains of HK$3.5 million in 2022, reflecting the challenging market conditions[33]. - Realized loss amounted to HK$17,508,000, while unrealized loss at year-end was HK$36,253,000[51]. Investment Activities - The Group disposed of a significant portion of its listed investments, leading to a substantial increase in gross proceeds from the disposal of financial assets[17]. - Gross proceeds from the disposal of financial assets at FVTPL increased significantly to HK$16.53 million in 2023 from HK$4.27 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]. - The fair value of the investment in a zinc and lead mine in the PRC was determined based on limited financial information and an independent valuation[24]. - The Group held a 14.7% equity interest in Wealth Spread, which has a 54% indirect interest in a lead and zinc mining entity in the PRC[52]. Expenses and Costs - Investment management expenses were reduced from HK$0.96 million to HK$0.56 million during the year[22]. - 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]. - The margin loan from a securities broker decreased to approximately HK$2.42 million at year-end 2023 from HK$10.51 million at year-end 2022, resulting in lower interest expenses of approximately HK$994,000 compared to HK$1.11 million in 2022[40]. - 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]. Shareholder and Corporate Governance - The Board does not recommend the payment of a dividend for the Year, consistent with the previous year (2022: Nil)[92]. - The Group's share capital underwent a reorganization approved by shareholders on December 11, 2023, effective from December 13, 2023[93]. - The Company has no service contracts with directors that are not determinable within one year without compensation[125]. - The Company considers all INEDs to be independent, having received annual confirmations of their independence[126]. - The Board established a schedule of matters specifically reserved for its decision and those reserved for management[199]. Market Conditions and Future Outlook - The overall operating environment faced uncertainties, with macroeconomic pressures including rising interest rates and geopolitical tensions impacting recovery[9]. - Management is exploring options to raise additional equity funding to strengthen the balance sheet and capture investment opportunities[10]. - The Group's principal activity is significantly affected by global economic volatility, impacting the earning power of business enterprises and stock market fluctuations[160]. - The Group aims to enhance corporate value by identifying and investing in both listed and unlisted investments with growth potential, without a specific industry focus[46]. 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$5.47 million in 2023, up from HK$4.32 million in 2022[36]. - Each Independent Non-Executive Director (INED) received a director's fee of HK$100,000 per annum, which will remain the same for 2024[120]. - 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]. Compliance and Risk Management - The Group complies with legal and regulatory requirements, focusing on the Listing Rules and relevant laws in Hong Kong and the PRC[163]. - The auditor issued an unqualified letter regarding the continuing connected transaction, confirming compliance with relevant rules[153]. - The Board is responsible for corporate governance functions, including developing and reviewing policies and practices on risk management[200]. - The Group promotes environmental protection through practices such as recycling and reducing energy consumption in daily operations[161][166].
嘉进投资国际(00310) - 2023 - 年度财报