Market Conditions - The company experienced significant challenges in 2023, with the Hong Kong stock market reaching a 10-year low and daily trading volumes consistently below HKD 100 billion[21]. - The overall sentiment in the stock market remains pessimistic, with foreign capital continuing to withdraw from Hong Kong[21]. - The office vacancy rate in Hong Kong was reported at 14.7% in Q4 2023, indicating a challenging rental market[21]. Financial Performance - The total revenue for the fiscal year ending March 31, 2024, was approximately HKD 330,400,000, a slight decrease of HKD 900,000 compared to HKD 331,300,000 in the previous fiscal year[32]. - The company’s net profit for the year was HKD 94,329 thousand, down from HKD 122,692 thousand, indicating a decline of 23.06%[200]. - The earnings per share (EPS) decreased to HKD 7.47 from HKD 17.16, representing a drop of 56.41%[200]. - The group recorded a total annual loss of approximately HKD 687,400,000 for the fiscal year 2024, an improvement from a loss of HKD 1,163,000,000 in the previous fiscal year, with a potential net profit of approximately HKD 32,500,000 if non-cash goodwill and intangible asset impairments were excluded[66]. - The group recorded a consolidated gross profit of approximately HKD 94.3 million for the fiscal year 2024, representing a gross profit margin of 28.5%, down from HKD 122.7 million and a 37.0% margin in fiscal year 2023[158]. Revenue Segments - The insurance brokerage revenue significantly increased to approximately HKD 89,700,000, representing a 90% increase from HKD 47,200,000 in the previous fiscal year[34][37]. - The interest income from the lending business decreased by 31.9% to approximately HKD 17,500,000, down from HKD 25,700,000 in the previous fiscal year[36][40]. - The securities brokerage commission income rose from approximately HKD 1,400,000 to about HKD 3,200,000 due to increased trading volume driven by market volatility[32]. - The asset management revenue increased to approximately HKD 14,200,000, up from HKD 5,600,000 in the previous fiscal year, attributed to the rise in managed asset values[39]. - The trading business generated approximately HKD 400,000 in revenue for the fiscal year, compared to zero in the previous fiscal year[29]. - The company recorded a significant decline in total revenue for the membership and events segment, dropping to approximately HKD 26,800,000 from HKD 56,100,000 in the previous fiscal year due to reputational damage from legal issues[39]. - The multi-channel network and licensing segment recorded revenue of approximately HKD 51,900,000 for the fiscal year ending March 31, 2024, down from HKD 85,600,000 in the previous fiscal year, with a post-tax loss of approximately HKD 900,000 compared to a loss of HKD 100,000 in the prior year[41]. - The insurtech segment generated revenue of approximately HKD 68,800,000 for the fiscal year ending March 31, 2024, slightly down from HKD 70,100,000 in the previous fiscal year, with a post-tax loss of approximately HKD 4,600,000 compared to a loss of HKD 3,900,000 in the prior year[42]. Operational Challenges - The company faced operational disruptions due to legal actions from a major shareholder, which required the assistance of independent professionals to stabilize operations[21]. - Margin income was adversely affected, with a provision for expected credit losses of approximately HKD 107.2 million, representing 68.2% of the total outstanding margin financing[13]. - The company is committed to addressing liquidity issues faced by many businesses, particularly small and medium enterprises, in the current economic climate[21]. Risk Management - The company has established credit policies and continuously monitors credit risk associated with trade receivables and loans[1]. - Liquidity needs are regularly monitored, ensuring sufficient cash flow and financing resources from reputable financial institutions[2]. - The company operates in multiple currencies, including HKD, RMB, USD, DKK, and AUD, exposing it to foreign exchange risks[3]. - The company has managed foreign exchange risks prudently, ensuring minimal exposure to currency fluctuations[82]. - The company is continuously evaluating and monitoring foreign currency risks to mitigate the impact of exchange rate fluctuations[99]. - The company has not engaged in any financial hedging or speculative activities during the year[84]. Corporate Governance - The company has adopted a diversity policy for the board, currently having one female director and aiming to improve gender representation[184]. - The company has implemented a whistleblowing policy to report any suspected misconduct, ensuring confidentiality for whistleblowers[188]. - The board and audit committee will regularly review the effectiveness of the anti-fraud and anti-corruption policies[190]. - The company is committed to preventing and investigating all forms of fraud and corruption among its employees and representatives[190]. - The company plans to continue its independent board evaluation process, which is considered an ongoing effort to enhance governance[196]. - The board's independence assessment indicated that it possesses the necessary skills and experience to fulfill its fiduciary duties effectively[199]. - The company is committed to ensuring that all board members receive timely and reliable information to make informed decisions[195]. Shareholder Actions - The company successfully placed a total of 1,525,992,613 new shares to at least six independent third-party subscribers, with the placement completed on April 26, 2024[81]. - The company plans to raise approximately HKD 91,600,000 from the share placement, with net proceeds expected to be around HKD 89,700,000, primarily to repay debts and support operations[95]. - As of March 31, 2024, the total number of issued shares is 7,629,963,067, which will increase to 9,155,955,680 after the completion of the share placement[96]. - The company issued 452,666,666 new shares on February 21, 2023, and another 452,666,666 new shares on August 31, 2023, as part of the payment for the acquisition[109]. Future Outlook - The group anticipates that the influx of capital will stimulate demand in its wealth management and asset management businesses, positively impacting these segments[44]. - The company plans to continue operating its membership and events business despite the termination of a licensing agreement, seeking new partnerships for diversification[30]. - The company completed a restructuring to improve its financial condition and resolved internal conflicts, leading to the termination of temporary liquidation status on June 6, 2024[121].
京基金融国际(01468) - 2024 - 年度财报