Business Performance - G-Resources maintained stable business development and strengthened market position despite geopolitical challenges and trade disputes in 2024[16]. - The financial services business achieved a net profit during the year, benefiting from a resurgence in investor confidence and increased market activity in the securities markets of Mainland China, Hong Kong, and the United States[18]. - The revival of initial public offerings (IPOs) in Hong Kong positively impacted G-Resources' business, with a focus on enhancing service quality for individual and institutional clients[18]. - The principal investment business evaluated existing investment portfolios and identified new opportunities to enhance overall profitability amid improving global economic conditions[19]. - The real property business generated positive cash flow from property investments in Canada and actively explored high-quality investment opportunities in regions including the Greater Bay Area, North America, and Europe[24]. - G-Resources plans to further diversify its property portfolio geographically to capitalize on strategic investment opportunities[24]. - The company remains optimistic about the Hong Kong securities market in 2025, citing its strategic location and ties with Mainland China as key factors attracting investors[18]. - G-Resources aims to strengthen its competitive edge and optimize resources to reinforce its position as a leading integrated financial services provider[18]. - The company is committed to capitalizing on suitable investment opportunities that drive growth and returns in its principal investment business[19]. - G-Resources' management team is focused on improving service quality and maintaining strong client relationships to support business growth[18]. Financial Overview - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[59]. - Revenue for the Year was USD37.9 million, a decrease of USD51.1 million compared to USD89.1 million in 2023, primarily due to reduced dividend and distribution income from financial products[66]. - Profit for the Year increased to USD47.6 million from USD7.1 million in 2023, driven by a turnaround in the fair value of financial assets and investments in perpetual notes at FVTPL, amounting to USD105.8 million[62]. - Other income for the Year was USD28.3 million, up from USD25.1 million in 2023, mainly attributed to interest income from fixed income investments[67]. - Administrative expenses decreased to USD7.3 million from USD7.5 million in 2023, reflecting effective cost control measures[70]. - The fair value of investment properties decreased by USD6.4 million during the Year, indicating a decline in Hong Kong commercial property prices[68]. - The Group's total assets as of December 31, 2024, were USD1,615.5 million, an increase from USD1,568.2 million in 2023, representing a growth of 3.0%[111]. - Current assets increased to USD880.4 million in 2024 from USD824.7 million in 2023, reflecting an increase of USD55.7 million[112]. - Net assets rose to USD1,581.5 million as of December 31, 2024, up by USD44.6 million from USD1,537.0 million in 2023, primarily due to a profit of USD47.6 million[113]. Investment Strategy - The Group is diversifying its investment portfolio, having invested in funds, bonds, and both listed and unlisted equity investments during the year[33]. - The Group's principal investment business aims to identify opportunities across various industries for better risk-weighted returns[32]. - The Group has established a more stringent risk control and management system to minimize risk exposure, including optimized loan approval and monitoring procedures[89][92]. - The Group had no bad debts during the year, reflecting effective risk management practices[91][93]. - The Group's investment portfolio consists of a diversified mix of funds, bonds, and both listed and unlisted equity investments, with periodic reviews to identify suitable investment opportunities[146]. - The Group aims to enhance its financial services, focusing on securities trading, margin financing, asset management, and corporate finance advisory, leveraging competitive commission rates and high-quality services[137]. Market Outlook - The Group is well-positioned to capitalize on a favorable business environment in 2025, supported by measures from the Chinese government to stimulate economic growth, including interest rate cuts and reductions in the reserve requirement ratio[138]. - The Hang Seng Index has shown a significant increase, indicating a resurgence in investor confidence and market activity, with the Hong Kong IPO market expected to continue improving into 2025[138]. - The Group plans to actively promote its IPO margin financing business, utilizing its existing client base and strengthening relationships with brokerage firms to drive growth in this segment[139]. - The Group will prioritize expanding its high-quality client base and enhancing relationships with major institutional clients through tailored financial products and services[144]. Operational Efficiency - Cost management strategies have led to a 5% reduction in operational expenses, improving overall profitability[59]. - The Group's cash and cash equivalents increased by USD133.3 million to USD263.6 million in 2024[111]. - The net cash generated from operating activities for 2024 was USD 22.9 million, primarily from a profit of USD 47.6 million, adjusted for non-cash and non-operating items of USD 46.7 million, and interest received of USD 25.3 million[118]. - The net cash generated from investing activities was USD 113.3 million, including interest received from bank deposits of USD 21.5 million and withdrawals of time deposits of USD 128.3 million, partially offset by net cash outflows for investments of USD 36.5 million[118]. Human Resources - As of December 31, 2024, the Group had 41 employees in Hong Kong, with competitive remuneration packages based on performance[152]. - The Group employed 41 staff members, with competitive compensation packages including salary, medical plans, group insurance, mandatory provident fund, and performance bonuses[155]. Corporate Governance - The Company has proposed a final dividend of HKD0.12 per share for the Year, consistent with the previous year[161]. - The Directors' service contracts for Mr. Chen Gong and Mr. Martin Que Meideng are for three years, commencing from June 22, 2022[180]. - There were no transactions, arrangements, or contracts of significance involving Directors or connected entities during the year[200].
国际资源(01051) - 2024 - 年度财报