> **来源：[研报客](https://pc.yanbaoke.cn)** # **Loco Hong Kong Holdings Limited 2022 Annual Report Summary** ## **Core Content** Loco Hong Kong Holdings Limited (stock code: 8162) is a Hong Kong-listed company with limited liability, primarily engaged in metal trading and education management services. The company operates under the GEM (Growth Enterprise Market) of the Stock Exchange of Hong Kong Limited, which is designed for small and mid-sized companies with higher investment risks. The annual report highlights the challenges faced by the Group in 2022 due to global and local economic uncertainties, including the ongoing impact of the pandemic, geopolitical tensions, and inflation. Despite these challenges, the Group managed to improve its operations and financial performance, particularly in the fourth quarter of 2022. ## **Main Points** ### **Metal Business** - **Historical Overview**: The Group has been engaged in metal trading since 2010, initially focusing on silver, gold, and tin, with processed silver as its main product. - **Challenges**: Since 2017, the metal business has faced significant challenges due to rising logistics costs, supply shortages, and shrinking demand, exacerbated by the pandemic and the "border closure" between Hong Kong and the PRC Mainland. - **Strategy Shift**: In response to these challenges, the Group shifted its focus from processing and selling silver to becoming a metal supply chain integrator, offering one-stop services such as procurement, insurance, logistics, and market intelligence. - **Key Partners**: The Group has established strategic partnerships with major clients in the PRC Mainland, including Chengdu Zhonghuan Fulin Trading Co., Ltd. and several state-owned enterprises. - **Performance**: The metal business saw a significant increase in revenue, with total revenue of approximately HK$34.55 million for 2022 (compared to HK$9.39 million in 2021), and HK$18.32 million in the fourth quarter. This reflects the Group's efforts to enhance its business model and expand its market reach. ### **Education Management Services Business** - **Introduction**: The Group introduced this business in 2019 and achieved profitability in the same year. - **Impact of the Pandemic**: The business was severely affected in 2020, and further disrupted by the "Double Reduction Opinions" in 2021, which reshaped the domestic education sector. - **Strategic Adjustments**: The Group adjusted its strategy to focus on areas encouraged by national education policy, such as arts and sports education, humanities and well-rounded education, and nature experience education. - **New Customers**: In 2022, the Group expanded its customer base to include new clients in the education sector, including an institution offering natural experience well-rounded education and a textbook distributor. - **Performance**: The education management services business started to recover in the fourth quarter, with revenue of approximately HK$8.51 million. The Group now has 8 customers, covering a range of educational institutions and services. ## **Key Information** - **Corporate Structure**: - **Executive Directors**: Mr. Wang Wendong (Chairman and CEO), Mr. Fung Chi Kin - **Independent Non-Executive Directors**: Mr. Zhou Tianshu, Ms. Wu Liyan, Ms. Wong Susan Chui San - **Committees**: Audit Committee, Executive Committee, Remuneration Committee, Nomination Committee - **Company Secretary**: Mr. Chiu Ming King - **Compliance and Auditors**: - **Compliance Officer**: Mr. Fung Chi Kin - **Auditors**: HLB Hodgson Impey Cheng Limited - **Contact Information**: - **Website**: www.locohkholdings.com - **Email**: info@locohkholdings.com - **Registered Office**: Unit 401, 4/F., Fairmont House, 8 Cotton Tree Drive, Admiralty, Hong Kong - **Share Registrar and Transfer Office**: Union Registrars Limited, 3301-04, 33/F., Two Chinachem Exchange Square, 338 King's Road, North Point, Hong Kong ## **Conclusion** The Group has demonstrated resilience in the face of multiple external challenges in 2022. By adapting its business strategies and expanding its customer base in both the metal and education sectors, the Group has achieved a notable recovery in revenue and operational performance. The company remains committed to its sustainable business model and is well-positioned to continue its growth trajectory in the evolving market environment.