Financial Performance - Revenue from financial lending business increased to HKD 116,187,000, up 24.2% from HKD 93,546,000 in the same period last year[2] - Total revenue for the six months ended June 30, 2024, was HKD 116,981,000, compared to HKD 94,851,000 for the same period in 2023, representing a growth of 23.3%[2] - Operating profit for the period was HKD 21,505,000, slightly up from HKD 20,062,000, reflecting a growth of 7.2%[2] - Net profit for the period increased to HKD 14,709,000, compared to HKD 13,608,000 in the previous year, marking a rise of 8.1%[2] - The company reported a basic and diluted earnings per share of HKD 0.55, up from HKD 0.51 in the same period last year, indicating a growth of 7.8%[3] - The net profit attributable to the company's owners for the six months ended June 30, 2024, was HKD 14,709, representing an increase of 8.1% from HKD 13,608 in the same period of 2023[26] - Basic earnings per share for the six months ended June 30, 2024, were HKD 0.55, compared to HKD 0.51 for the same period in 2023[26] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 1,228,706,000, a decrease from HKD 1,264,977,000 as of December 31, 2023[6] - The company reported a total liability of HKD 143,730,000 as of June 30, 2024, down from HKD 184,202,000 as of December 31, 2023[12] - Total liabilities reported as of June 30, 2024, were HKD 143,730, down 22% from HKD 184,202 as of December 31, 2023[15] - Total equity as of June 30, 2024, was HKD 1,084,976,000, slightly up from HKD 1,080,775,000 as of December 31, 2023[6] Segment Performance - The property development and investment segment reported a loss before tax of HKD 2,503,000, while the financial lending segment generated a profit before tax of HKD 28,666,000, resulting in a total profit before tax of HKD 20,382,000[11] - The property development and investment segment generated revenue of HKD 794,000, while the financial lending segment contributed HKD 116,187,000 for the six months ended June 30, 2024[11] - The financial lending segment's assets were HKD 842,010,000, representing 68.6% of total segment assets[12] Impairment and Fair Value - The fair value loss on investment properties was HKD 3,000,000, compared to a gain of HKD 6,000,000 in the previous year[2] - The company incurred a net impairment loss on financial assets of HKD 43,530,000, compared to HKD 40,766,000 in the same period last year[2] - The company reported a net impairment loss on financial assets of HKD 43,530 for the six months ended June 30, 2024, compared to HKD 40,766 for the same period in 2023[22] Cash Flow and Income - Cash and cash equivalents increased to HKD 129,313,000 from HKD 101,057,000, showing a growth of 27.9%[5] - The company reported unallocated expenses of HKD 7,767,000 for the six months ended June 30, 2024[11] - The company’s net other income for the period was HKD 239,000, contributing to the overall financial results[11] - The company recognized a net other income of HKD 2,473 for the six months ended June 30, 2024, compared to HKD 666 for the same period in 2023[19] Customer and Market Insights - The company has not identified any single customer contributing 10% or more to total revenue for the periods reported[14] - The number of active customers for unsecured loans increased from 13,491 on December 31, 2023, to 14,224 on June 30, 2024, generating approximately HKD 95 million in revenue for the six months ending June 30, 2024, compared to HKD 81 million for the same period in 2023[40] Operational Developments - The company applied revised accounting standards effective from January 1, 2024, with no significant impact on financial performance or disclosures[10] - The company has established a system to identify and review overdue loan accounts, with a focus on the overall status of outstanding loans and recovery capabilities[47] - The company anticipates challenges in the Hong Kong economy in the second half of 2024 due to global economic slowdown and inflation, but aims to enhance its financial service platform through the X Wallet and X Pay applications[50] - The company has acquired an IT business to reduce reliance on external vendors and enhance strategic value[50] - The company plans to implement strict loan application requirements and improve risk pricing models to minimize default risks[50] Corporate Governance and Compliance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules during the reporting period[53] - There have been no significant changes or major matters to disclose after the reporting period ending June 30, 2024[52] Miscellaneous - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous period[36] - The group has not sold any residential units in the six months ending June 30, 2024, with 56 units remaining unsold, of which 4 are rented out[39] - The group wrote off approximately HKD 33,695,000 in receivables due to borrower bankruptcy and death during the six months ending June 30, 2024[42] - The group faces foreign exchange risks primarily related to the Renminbi due to its operations in China and Hong Kong[44] - The group has no significant capital expenditure commitments and is funded by loans from a shareholder, capital reserves, and cash generated from operations[44] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the six months ending June 30, 2024[51] - As of June 30, 2024, the company has no new products or services to be launched in the market[48] - The company employs 120 staff members, with compensation policies based on performance, qualifications, and market salary levels[49] - The carrying amount of property, plant, and equipment as of June 30, 2023, was HKD 231,114,000, compared to HKD 228,000,000 for investment properties[28]

Employee and Compensation - The group employed a total of 68 employees as of December 31, 2023, with benefits including insurance, provident fund plans, and discretionary bonuses[2] - The company’s employee compensation policy is based on performance, qualifications, and market data, ensuring compliance with applicable laws and regulations[16] Dividend Policy - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[4] - The board does not recommend a final dividend for the year ended December 31, 2023, similar to the previous year[5] - The company does not recommend the payment of a final dividend for the fiscal year ending December 31, 2023[57] Business Operations - The main business of the company is investment holding, with subsidiaries engaged in property development and investment in Hong Kong and China, as well as financial lending activities in Hong Kong[7] - The company did not make any acquisitions during the year, aside from regular operational expenses[14] - The company focuses on providing mortgage loans to residential property buyers in Hong Kong, with interest rates for mortgage loans ranging from 9% to 18%[60] - The company has established a system to identify and review overdue loan accounts, ensuring close monitoring of the overall status of outstanding loans[67] - The group has not acquired any land or properties in Guangdong Province during the year due to intense competition but will continue to seek investment opportunities in the property market[87] Financial Performance - The company’s financial performance and position for the year ended December 31, 2023, are detailed in the audited consolidated financial statements[3] - The company recorded a profit of HKD 12,136,000 for the fiscal year ending December 31, 2023, down from HKD 15,189,000 for the previous year, representing a decrease of approximately 20.2%[56] - For the year ended December 31, 2023, the group recorded revenue of HKD 196,609,000 and profit of HKD 12,136,000, compared to revenue of HKD 162,870,000 and profit of HKD 15,189,000 for the year ended December 31, 2022, indicating a revenue increase of approximately 20.7%[79] - Interest income from financial lending business for the year was approximately HKD 194.5 million, an increase of about HKD 35.2 million or 22.1% compared to HKD 159.3 million for the previous year[80] - The group reported a profit before tax of HKD 20,076,000 for 2023, down from HKD 24,793,000 in 2022, reflecting a decrease of approximately 19.5%[120] Customer and Market Insights - The company maintained good relationships with its major customers and suppliers, with no significant disputes reported during the year[1] - The number of active customers for unsecured loans increased from 10,993 to 13,491, contributing to revenue of approximately HKD 157,548,000 for the year, up from HKD 125,931,000 in the previous year, marking an increase of about 25.1%[69] - Rental income from the company's property, Yongsheng Plaza, decreased by about 5% compared to the previous year[56] - Revenue from external customers in Hong Kong was HKD 194,994,000, up from HKD 161,178,000 in the previous year, indicating a growth of about 20.9%[109] Risk Management - The financial risk management objectives and policies are detailed in the financial statements, indicating potential unidentified risks that may become significant in the future[8] - The group has a net allowance for expected credit losses of HKD 72,657,000 as of December 31, 2023, reflecting a proactive approach to risk management[74] - The group will continue to review its loan portfolio and risk control measures to minimize default risks[77] - The group continues to face foreign exchange risks primarily related to the Renminbi, with no financial instruments arranged for hedging purposes[113] Future Outlook and Strategy - The group anticipates challenges in the Hong Kong economy in 2024 due to global economic slowdown, inflation, and political instability, but remains optimistic about future growth opportunities[86] - The group plans to enhance its risk pricing model and implement various marketing strategies to promote the X Wallet and X Pay brands, aiming to increase market visibility[77] - The launch of the new product X Pay, a "buy now, pay later" feature within the X Wallet application, is expected to diversify the services offered to users[86] - The company is considering strategic acquisitions to enhance its product portfolio, with potential targets identified in the tech sector[168] Governance and Compliance - The board of directors confirmed their commitment to maintaining independence and transparency in governance practices[157] - The company has a significant focus on compliance, corporate governance, and company secretarial matters, as indicated by the experience of its independent non-executive director[175] - The company has a robust internal control system to ensure the preparation of accurate financial statements and compliance with relevant regulations[195] Shareholder Information - Mr. Li Li holds a total of 1,252,752,780 shares, representing 46.96% of the total issued shares[180] - Mr. Li Mingjun has a total of 1,962,752,780 shares, accounting for 73.58% of the total issued shares[180] - Mr. Zhou Houcheng holds 7,150,000 shares, which is 0.27% of the total issued shares[180]

智通财经APP讯，TERMBRAY IND(00093)发布截至2023年12月31日止年度业绩，该集团取得收益1.97亿港元，同比增加20.72%;年内溢利1213.6万港元，同比减少20.1%;每股盈利0.45港仙。 公告称，溢利减少主要由于来自金融借贷业务的利息收入于本年度取得约1.95亿港元(2022年： 1.59亿港元)，较截至2022年12月31日止年度增加约3520万港元; 金融资产减值亏损净额约8380万港元;及投资物业的公允值亏损约900万港元。 ...

Financial Performance - The company recorded revenue of HKD 196,609,000 and profit of HKD 12,136,000 for the year ending December 31, 2023, compared to revenue of HKD 162,870,000 and profit of HKD 15,189,000 for the previous year[16]. - The basic earnings per share for 2023 was HKD 0.45, down from HKD 0.57 in 2022[3]. - For the year ended December 31, 2023, total revenue was HKD 196,609 thousand, an increase from HKD 162,870 thousand in 2022, representing a growth of approximately 20.7%[63]. - Net profit for the year was HKD 12,136,000, down 20.1% from HKD 15,189,000 in the previous year[76]. - Operating profit decreased to HKD 27,160,000 in 2023 from HKD 32,884,000 in 2022, representing a decline of 17.5%[76]. - The company reported a net loss from investment properties of HKD 9,000,000 in 2023, compared to a loss of HKD 19,520,000 in 2022, showing improvement[76]. - The group reported a net loss of HKD 467,000 for the year 2023, compared to a loss of HKD 17,000 in 2022[91]. Revenue Sources - Interest income from financial lending business amounted to approximately HKD 194.5 million, an increase of about HKD 35.2 million compared to HKD 159.3 million for the year ending December 31, 2022[18]. - The company’s receivables from loans and interest, net of provisions, amounted to HKD 638,636,000, an increase from HKD 543,469,000 in the previous year[11]. - The number of active customers for unsecured loans increased from 10,993 as of December 31, 2022, to 13,491 as of December 31, 2023, generating revenue of approximately HKD 157,548,000 for the year[23]. - The company’s total revenue from asset recovery was HKD 100,000 in 2023, with no revenue reported in 2022[91]. Asset and Liability Management - Total assets as of December 31, 2023, amounted to HKD 1,264,977 thousand, a slight decrease from HKD 1,270,706 thousand in 2022[66]. - Total liabilities increased to HKD 184,202 thousand in 2023 from HKD 178,599 thousand in 2022, indicating a rise of approximately 3.4%[66]. - Non-current assets in Hong Kong decreased to HKD 761,573 thousand in 2023 from HKD 943,163 thousand in 2022, a decline of approximately 19.2%[69]. - Cash and cash equivalents decreased significantly to HKD 101,057,000 from HKD 166,777,000, a drop of 39.2%[78]. Impairment and Provisions - The company reported a net impairment loss on financial assets of approximately HKD 83.8 million and a fair value loss on investment properties of about HKD 9.0 million[18]. - The company has a total of HKD 711,293,000 in receivables from loans and interest, with a provision for impairment of HKD 72,657,000[11]. - The company wrote off approximately HKD 63,634,000 in receivables due to borrower bankruptcy and death during the fiscal year ending December 31, 2023[32]. - For loans overdue by more than 90 days, the company considers these assets to be in default and has made full provisions for the related outstanding loans[42]. Dividend and Shareholder Returns - The company did not recommend the payment of a final dividend for the year ending December 31, 2023, consistent with the previous year[1][17]. Operational Highlights - The company completed a sale agreement for HKD 160,000,000 related to its subsidiary in January 2024[14]. - The company launched a new product, X Pay, in the second half of 2023, aiming to enhance its position as a comprehensive financial services platform[43]. - The company is actively investing in marketing resources to attract new customers for unsecured loans through various advertising channels[22]. - The company has established a rigorous control framework for credit approval and risk assessment for unsecured loans through the X Wallet application[29]. Cost Management - The total operating expenses increased to HKD 25,591,000 in 2023 from HKD 18,050,000 in 2022, representing a growth of approximately 42%[91]. - The company incurred a total of HKD 2,105,000 in bank service fees in 2023, up from HKD 1,540,000 in 2022, reflecting a rise of about 36.6%[91]. - The company reported a significant increase in computer accessories expenses, which rose to HKD 6,185,000 in 2023 from HKD 1,160,000 in 2022, marking a substantial increase of approximately 433.6%[91]. Governance and Compliance - The company has adhered to corporate governance codes and has established a robust governance framework to ensure operations align with shareholder interests[52].

Financial Performance - For the six months ended June 30, 2023, rental income was HKD 465,000, a decrease of 50% compared to HKD 930,000 for the same period in 2022[4]. - The company recorded a profit attributable to owners of approximately HKD 13,608,000 for the six months ended June 30, 2023, compared to HKD 11,464,000 for the same period in 2022, representing an increase of about 19%[38]. - Total revenue for the six months ended June 30, 2023, was HKD 94,851,000, up from HKD 72,609,000 in the same period of 2022, marking a growth of approximately 30.5%[39]. - Interest income from financial lending operations was approximately HKD 93.5 million, an increase of about HKD 22.7 million compared to HKD 70.8 million for the same period in 2022[40]. - The company reported a total of HKD 40,766,000 in expected credit losses for the six months ended June 30, 2023, compared to HKD 21,286,000 for the same period in 2022, reflecting a significant increase of 91.5%[194]. Assets and Liabilities - As of June 30, 2023, total receivables amounted to HKD 642,853,000, an increase of 9.8% from HKD 585,240,000 as of December 31, 2022[12]. - The company’s total assets as of June 30, 2023, amounted to HKD 1,284,229,000, compared to HKD 943,200,000 as of December 31, 2022[182]. - The group’s total liabilities stood at HKD 186,819,000, slightly up from HKD 178,599,000, indicating an increase of about 4.25%[125]. - The group’s non-current assets amounted to HKD 1,008,882,000, up from HKD 947,416,000, indicating an increase of about 6.67%[124]. - The total equity of the group reached HKD 1,097,410,000, compared to HKD 1,092,107,000 at the end of 2022, reflecting a slight increase of 0.48%[124]. Cash Flow - For the six months ended June 30, 2023, the net cash used in operating activities was HKD (30,576) thousand, compared to HKD 26,478 thousand for the same period in 2022, indicating a significant decline in cash flow from operations[150]. - The total cash and cash equivalents decreased to HKD 133,941 thousand as of June 30, 2023, from HKD 202,898 thousand at the end of the same period in 2022, representing a decline of approximately 34%[150]. - Cash and cash equivalents decreased to HKD 9,001,000 as of June 30, 2023, down from HKD 29,877,000 as of December 31, 2022, a decline of 69.9%[189]. Investment and Property - The net value of properties held for sale was maintained, with management actively promoting these properties at reasonable prices[7]. - The company’s investment properties were valued at HKD 160,000,000 as of December 31, 2022, and are leased under operating leases[7]. - The company is actively seeking investment opportunities in the property market in Guangdong Province, despite facing competitive challenges[57]. - The group did not record any property sales transactions approved by the government during the six months ended June 30, 2023, resulting in no residential units sold[65]. Management and Governance - The company’s management compensation for the six months ended June 30, 2023, was HKD 3,289,000, a decrease of 16.3% from HKD 3,929,000 for the same period in 2022[5]. - The remuneration policy for employees is based on performance, qualifications, and capabilities, with no involvement from directors in determining their own compensation[104]. - The company has revised its articles to ensure that all directors, except the chairman and managing director, must retire at least once every three years[95]. Customer and Market Activity - The number of registered users for X Wallet increased from 83,902 as of December 31, 2022, to 94,981 as of June 30, 2023, representing a growth of approximately 13.5%[43]. - Active customers for X Wallet rose from 10,969 to 12,380 during the same period, indicating an increase of about 12.8%[43]. - The company plans to launch a new product, X Pay, in the second half of 2023, which will enhance its financial service offerings[56]. Risk Management - The company has established a system to identify and review overdue loan accounts, with management closely monitoring the overall status of unpaid loans[102]. - The company will actively review its loan portfolio and risk control measures, aiming to enhance risk pricing models and promote the X Wallet and X Pay brands[105]. - The company will implement strict loan application requirements to minimize default risks in the future[105]. Compliance and Reporting - The interim financial information was prepared in accordance with Hong Kong Accounting Standards, ensuring compliance and accuracy in financial reporting[152]. - The company’s interim financial data was approved for publication by the board on August 25, 2023, indicating timely reporting practices[152].

Financial Performance - For the six months ended June 30, 2023, the company reported interest income from financial lending business of HKD 93,546,000, an increase of 32.1% from HKD 70,804,000 in the same period last year[8]. - The company's operating profit for the period was HKD 20,062,000, slightly up by 1.6% from HKD 19,754,000 in the previous year[8]. - The net profit for the period was HKD 13,608,000, an increase of 18.6% compared to HKD 11,464,000 in the same period last year[8]. - Total revenue was HKD 94,851,000, an increase from HKD 72,609,000 for the same period in 2022, representing a growth of approximately 30.6%[22]. - The company reported a pre-tax profit of HKD 16,599,000 for the period, compared to a pre-tax profit of HKD 16,009,000 in the previous year, showing a slight increase of approximately 3.7%[39]. - The company reported a profit of HKD 13,608,000 for the six months ended June 30, 2023, up from HKD 11,464,000 in the same period of 2022, indicating a growth of about 19.0%[120]. Revenue Sources - Rental income decreased to HKD 1,305,000 from HKD 1,805,000, representing a decline of 27.6%[8]. - Revenue from unsecured loans generated approximately HKD 77 million for the six months ended June 30, 2023, compared to HKD 51 million for the same period in 2022, reflecting a growth of approximately 51%[71]. - The segment performance for property development and investment was HKD 20,864,000, compared to HKD 22,065,000 in the previous year, indicating a decrease of about 5.5%[22]. - The company recognized interest income from bank deposits of HKD 648,000 for the period, compared to HKD 830,000 in the previous year, reflecting a decrease of about 21.9%[32]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 1,284,229,000, up from HKD 1,270,706,000 at the end of the previous year[14]. - Total liabilities increased to HKD 186,819,000 as of June 30, 2023, from HKD 178,599,000 at the end of 2022, marking a rise of about 4.3%[30]. - The company’s equity increased to HKD 1,097,410,000 from HKD 1,092,107,000, reflecting a growth of 0.5%[14]. - The company’s total liabilities to total assets ratio as of June 30, 2023, was approximately 14.6%, compared to 14.0% at the end of 2022, indicating a slight increase in leverage[30]. Impairment and Provisions - The company recorded a provision for impairment of loans and interest of HKD 40,766,000, which is significantly higher than HKD 21,286,000 in the previous year[8]. - The company’s expected credit loss for the six months ended June 30, 2023, was HKD 40.8 million, compared to HKD 21.3 million for the same period in 2022, indicating an increase in credit risk[48]. - During the six months ended June 30, 2023, the group wrote off loans and interest receivables totaling approximately HKD 26,894,000 due to borrower bankruptcy and debtor death[130]. Earnings Per Share - Basic and diluted earnings per share for the period were both HKD 0.51, up from HKD 0.43 in the same period last year[12]. - Basic earnings per share increased to HKD 0.51 for the six months ended June 30, 2023, compared to HKD 0.43 for the same period in 2022, representing a growth of approximately 18.6%[75]. Cash Flow and Expenses - Cash and cash equivalents decreased to HKD 9,001,000 as of June 30, 2023, from HKD 29,877,000 at the end of 2022, representing a decline of approximately 69.9%[30]. - The company’s tax expense for the six months ended June 30, 2023, was HKD 2.99 million, a decrease from HKD 4.55 million for the same period in 2022[49]. - The company reported a net interest expense of HKD 3.5 million for the six months ended June 30, 2023, compared to HKD 3.7 million for the same period in 2022, indicating a slight decrease[45]. Investment and Market Strategy - The group is actively seeking investment opportunities in the Chinese property market, particularly in Guangdong Province, despite not acquiring any land or properties during the review period due to intense competition[138]. - The group aims to leverage opportunities in the Chinese market, supported by government policies to stimulate the real estate sector[111]. - The group has established a system to identify and review overdue loan accounts, with management closely monitoring the overall status of outstanding loans through daily reports[106]. Product Development - A new product, X Pay, was launched in the second half of 2023, providing a "buy now, pay later" payment feature within the X Wallet application[142]. - The group plans to enhance its risk management and pricing models while adopting multiple marketing strategies to promote the X Wallet and X Pay brands[137]. Customer Metrics - X Wallet registered users increased from 83,902 on December 31, 2022, to 94,981 on June 30, 2023, representing an increase of approximately 13%[71]. - Active customers of X Wallet rose from 10,969 to 12,380 during the same period, marking a growth of about 13%[71].

Lending Operations - The company has established a system to identify and review overdue loan accounts, with management closely monitoring the overall status of outstanding loans through daily reports [15]. - The demand for unsecured loan services supported by financial technology is continuously increasing, driven by changes in consumer behavior towards digitalization and online consumption [17]. - The company anticipates steady growth in its lending business, supported by the automated mobile application X Wallet, which offers instant approval decisions and 24/7 fund transfers [17]. - The company has implemented strict internal control measures for its financial lending operations, including credit approval processes and risk assessment models [14]. - The management expects to expand market share and customer base in the fintech lending sector due to favorable market conditions [17]. - The group plans to expand the X Wallet loan portfolio and enhance its product offerings to improve customer loan experiences, aiming to strengthen its competitiveness in the unsecured loan market [18]. - The group aims to enhance risk management and pricing models while implementing various marketing strategies to promote the X Wallet brand and increase market visibility [18]. - The number of registered users for the X Wallet application increased from 62,765 as of December 31, 2021, to 83,902 as of December 31, 2022, while active users rose from 8,269 to 10,969 [125]. - Revenue generated from the X Wallet application for the year ended December 31, 2022, was approximately HKD 118,299,000, compared to HKD 53,782,000 in the previous year [125]. - The weighted average annual interest rate for unsecured loans approved through X Wallet is approximately 42%, with loan amounts ranging from HKD 5,000 to HKD 105,000 [114]. Financial Performance - Revenue for the year 2022 was HKD 162,870,000, an increase of 44.8% compared to HKD 112,435,000 in 2021 [37]. - Operating profit decreased to HKD 32,884,000, down 15.5% from HKD 38,932,000 in the previous year [37]. - Net profit for the year was HKD 15,189,000, a decline of 28.5% from HKD 21,267,000 in 2021 [37]. - Total equity as of December 31, 2022, was HKD 1,092,107,000, down from HKD 1,122,902,000 in 2021 [39]. - Total assets decreased to HKD 1,270,706,000 from HKD 1,334,605,000 in the previous year [39]. - Total liabilities reduced to HKD 178,599,000, compared to HKD 211,703,000 in 2021 [39]. - Basic earnings per share for 2022 was HKD 0.57, down from HKD 0.80 in 2021 [37]. - Fair value losses on investment properties amounted to HKD 19,520,000, significantly higher than HKD 6,780,000 in the previous year [37]. - Employee benefit expenses increased to HKD 17,556,000 from HKD 15,059,000 in 2021, reflecting a rise of 16.6% [37]. - Other comprehensive losses for the year totaled HKD 45,984,000, compared to HKD 58,786,000 in 2021, indicating an improvement [37]. - The group reported a total impairment provision of HKD 48,955,000 in 2022, up from HKD 25,772,000 in 2021, indicating an increase of about 90% [81]. - The company recorded revenue of HKD 162,870,000 and profit of HKD 15,189,000 for the year ended December 31, 2022, compared to revenue of HKD 112,435,000 and profit of HKD 21,267,000 for the previous year [108]. Corporate Governance - The board of directors has maintained compliance with corporate governance codes, ensuring a robust governance structure that aligns with shareholder interests [4]. - The audit committee has reviewed the accounting principles and practices adopted by the group, ensuring alignment with the audited financial statements [11]. - The company has appointed new independent non-executive directors to enhance its governance structure, ensuring compliance with listing rules [7]. - The company has adhered to corporate governance codes throughout the fiscal year ending December 31, 2022 [6]. - The company did not recommend a final dividend for the year ended December 31, 2022, consistent with the previous year [98]. Market and Investment Activities - The group is actively seeking investment opportunities in the Chinese property market, particularly in Guangdong Province, despite not acquiring any land or properties in the current year due to intense competition [19]. - The company will focus on providing mortgage loans for property purchases in Hong Kong, while cautiously assessing borrowers' credit status and property quality due to economic uncertainties [126]. - The company did not approve any property sales transactions for the year 2022, and rental income from the Yongsheng Plaza decreased by approximately 8% compared to the previous year [113]. - The group has 56 residential units remaining for sale as of December 31, 2022, with 7 of these units already rented out [113]. Risk Management - The group is facing foreign exchange risks primarily related to the Renminbi due to its operations in China and Hong Kong [22]. - The group will continue to assess its loan portfolio and risk control measures in light of global economic challenges, including inflation and geopolitical tensions [18]. - The group has written off a total of approximately HKD 29,081,000 in receivables and interest due to borrower bankruptcy and death as of December 31, 2022 [31].

Financial Performance - For the six months ended June 30, 2022, the company recorded a revenue of HKD 72,609,000, an increase of approximately 43.7% compared to HKD 50,516,000 for the same period in 2021[6]. - The unaudited consolidated profit attributable to owners for the same period was approximately HKD 11,464,000, up from HKD 11,039,000 in the previous year, reflecting a growth of about 3.9%[5]. - Operating profit for the six months ended June 30, 2022, was HKD 19,754,000, a decrease of 5.4% from HKD 20,887,000 in the previous year[58]. - Net profit for the period was HKD 11,464,000, representing an increase of 3.9% from HKD 11,039,000 in the same period last year[58]. - The company reported a total comprehensive loss of HKD 6,816,000 for the six months ended June 30, 2022, compared to a loss of HKD 39,265,000 in the previous year[58]. - Basic and diluted earnings per share for the period were HKD 0.43, compared to HKD 0.41 in the same period last year[58]. - The company reported a profit attributable to owners of HKD 11,464,000, compared to HKD 11,039,000 for the same period in 2021, representing an increase of 3.85%[110]. - The basic earnings per share for the six months ended June 30, 2022, was HKD 0.43, up from HKD 0.41 in the same period of 2021, reflecting a growth of 4.88%[110]. Revenue Segments - Interest income from financial lending business for the review period was approximately HKD 70.8 million, an increase of about HKD 23.9 million compared to HKD 46.9 million for the same period in 2021[7]. - The financial lending segment generated revenue of HKD 70,804 thousand, up 50.9% from HKD 46,900 thousand in the previous year[100]. - The property investment and development segment reported revenue of HKD 1,805 thousand, a slight decrease of 2.5% from HKD 1,851 thousand in the same period last year[100]. Property Investment and Development - The company faced challenges in the property investment and development sector, with no sales transactions approved and recorded in the government property sales system during the review period[9]. - Rental income from the property project in Zhongshan decreased by approximately 11% compared to the same period in 2021[9]. - As of June 30, 2022, there were 56 unsold residential units remaining in the Yongsheng Plaza project, with 8 of these units rented out[9]. - The fair value loss on investment properties was approximately HKD 4.0 million during the review period[7]. - The fair value loss from revaluation during the six months ended June 30, 2022, was HKD 12,738,000, a decrease from HKD 50,151,000 for the same period in 2021[118]. - The company’s investment properties under operating leases were valued at HKD 176,290,000 as of June 30, 2022, down from HKD 179,440,000 as of December 31, 2021[141]. Financial Position - Cash and cash equivalents increased to HKD 202,898,000 as of June 30, 2022, up from HKD 180,947,000 at the end of 2021[60]. - Total assets as of June 30, 2022, were HKD 1,337,771,000, slightly up from HKD 1,334,605,000 at the end of 2021[60]. - Total liabilities increased to HKD 221,685,000 as of June 30, 2022, compared to HKD 211,703,000 at the end of 2021[62]. - The company’s total equity decreased to HKD 1,116,086,000 as of June 30, 2022, from HKD 1,122,902,000 at the end of 2021[60]. - The total amount of receivables for loans and interest as of June 30, 2022, was HKD 593,820,000 and HKD 7,645,000, respectively[17]. - The total cash and cash equivalents at the end of the period stood at HKD 202,898,000, down from HKD 219,187,000 at the end of June 2021[68]. Credit Risk Management - The expected credit loss provision for receivables was HKD 35,635,000 as of June 30, 2022, reflecting the company's cautious approach to credit risk management[17]. - The total provision for expected credit losses for loans and interest receivables was HKD 21,286,000 for the six months ended June 30, 2022, compared to HKD 12,020,000 in the same period of 2021, indicating a significant increase of 77.73%[105]. - The company wrote off approximately HKD 11,423,000 in receivables and interest due to factors such as borrower bankruptcy and death during the six months ending June 30, 2022[17]. Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange Listing Rules during the six months ending June 30, 2022[44]. - The board currently consists of three executive directors and two independent non-executive directors, which is below the minimum requirement of three independent directors[46]. - The audit committee has been reduced from three members to two members following the resignation of an independent non-executive director, which does not meet the requirement of at least three members[46]. - The company is in the process of identifying suitable candidates to fill the vacant positions on the board and will make announcements in due course[47]. - The company has adopted the standard code for securities transactions by directors as per the Listing Rules, and all directors have complied with this code during the six months ending June 30, 2022[48]. Market Conditions and Future Outlook - The COVID-19 pandemic continued to impact Hong Kong in the first half of 2022, but the company expects gradual economic recovery in the second half due to increased vaccination rates and government measures[26]. - The demand for unsecured loans supported by fintech services is growing, and the company plans to expand its market share through its automated mobile app "X Wallet" for personal loans[29]. - The company is actively seeking investment opportunities in the Chinese property market, particularly in Guangdong Province, despite not acquiring any land or properties during the review period due to intense competition[29]. - The company anticipates steady growth in its lending business supported by mobile application technology[29]. Employee and Operational Information - The company employed 51 staff members as of June 30, 2022, with compensation policies based on performance, qualifications, and market statistics[25]. - The group is primarily engaged in property investment and development, as well as financial lending services in Hong Kong[71]. - The group has two reportable segments: property investment and development, and financial lending, focusing on mortgage and personal loans[85][86].

Financial Performance - The company recorded a profit of HKD 21,267,000 for the fiscal year ending December 31, 2021, compared to a profit of HKD 45,959,000 for the nine-month period ending December 31, 2020[12]. - For the year ended December 31, 2021, the company recorded revenue of HKD 112,435,000 and a profit of HKD 21,267,000, compared to revenue of HKD 24,963,000 and profit of HKD 45,959,000 for the nine months ended December 31, 2020[28]. - The company's revenue from financial lending business increased significantly to HKD 106,979,000, up from HKD 19,853,000 in the previous period, indicating a strong growth in this segment[31]. - The total revenue from external customers in Hong Kong was HKD 108,839,000 for the year ended December 31, 2021, compared to HKD 21,248,000 for the previous period[46]. - The company reported a fair value loss of HKD 6.78 million on investment properties during the year[29]. - The company experienced a foreign exchange gain due to the appreciation of the Renminbi by approximately 2% during the year ended December 31, 2021[29]. Rental and Property Income - Rental income from the property "Yongsheng Plaza" increased by approximately 17% compared to the nine-month period ending December 31, 2020, due to only nine months of operation in the previous period[17]. - The group reported rental income of HKD 1,860,000 for the year ended December 31, 2021, compared to HKD 1,395,000 for the nine-month period ended December 31, 2020, representing a year-on-year increase of approximately 33.3%[117]. - The company confirmed the sale of 2 residential units during the fiscal year, compared to 3 units in the nine-month period ending December 31, 2020[17]. - The company has a total of over 440 residential units available for sale in "Yongsheng Plaza," located in a prime area of Zhongshan[16]. - The company's property sales in China generated revenue of HKD 1,765,000, down from HKD 2,422,000 in the previous period, reflecting the challenging market conditions[31]. User Growth and Digital Services - The number of registered users for the "X Wallet" app increased from 43,489 on December 31, 2020, to 62,765 on December 31, 2021[20]. - The existing customer base for "X Wallet" grew from 4,384 to 8,269 during the same period, contributing approximately HKD 54 million in performance for the fiscal year[20]. - The company plans to expand its "X Wallet" loan portfolio and enhance its product offerings to improve customer loan experiences and strengthen its secured loan business[25]. Governance and Corporate Structure - The company’s board of directors includes four executive directors and three independent non-executive directors, ensuring a diverse governance structure[82][84]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balance of power and independence[136]. - The company has a robust governance structure to monitor potential conflicts of interest among directors involved in competitive businesses[105]. - The independent non-executive directors have confirmed their independence according to the listing rules, enhancing corporate governance[84]. - The company has established a governance framework ensuring that each director must rotate at least once every three years, except for the chairman and CEO[135]. Financial Management and Capital Structure - The company reported distributable reserves of HKD 344,982,000 as of December 31, 2021, including retained earnings of HKD 153,172,000 and contributed surplus of HKD 191,810,000[81]. - The company has not declared any interim or final dividends for the fiscal year ending December 31, 2021[13]. - The company’s financial position allows for the distribution of dividends, provided it meets certain solvency criteria as per Bermuda company law[81]. - The total capital utilized was HKD 47,876,000 for the year ended December 31, 2021, compared to HKD 28,855,000 for the nine-month period ended December 31, 2020[49]. - The average capital utilized was HKD 1,298,124,000 for the year ended December 31, 2021, compared to HKD 1,117,482,000 for the nine-month period ended December 31, 2020[49]. Risk Management and Internal Control - The company emphasizes the importance of risk management and internal control, with the board responsible for the effectiveness of these systems[176]. - The internal audit function is conducted by an external professional firm, ensuring independence and thorough evaluation of risk management and internal control systems[187]. - The Audit Committee held 3 meetings during the fiscal year ending December 31, 2021, to review financial statements and internal control effectiveness[154]. - No significant control deficiencies were identified during the internal control review conducted in 2021[188]. Employee and Compensation Policies - The group employed 47 staff members as of December 31, 2021, with compensation policies based on performance and market salary levels[65]. - The total employer contributions to the mandatory provident fund plan for the year ended December 31, 2021, amounted to HKD 583,000, up from HKD 197,000 for the nine-month period ended December 31, 2020, indicating a significant increase of approximately 195.4%[121]. - The company has a remuneration range for senior management, with 1 individual earning between HKD 0 to 1,000,000[161]. - The company aims to attract and retain executives necessary for business development, with compensation reflecting individual performance and responsibilities[157]. Shareholder Engagement and Meetings - The attendance rate for the annual general meeting was 100% for key directors, indicating strong engagement with shareholders[195]. - The company plans to hold its next annual general meeting on June 10, 2022[195]. - Shareholders holding at least 10% of the voting rights can request a special general meeting[199]. - Procedures for nominating candidates for the board at the annual general meeting are available on the company's website[200].

Financial Performance - The company reported a consolidated profit attributable to owners of approximately HKD 11,039,000 for the six months ended June 30, 2021, compared to a loss of HKD 6,021,000 for the same period in 2020[5]. - Revenue for the six-month period was HKD 50,516,000, significantly up from HKD 8,695,000 for the same period in 2020[7]. - The company reported a net loss of HKD 5,908,000 for the six months ended June 30, 2021, compared to a net profit of HKD 11,039,000 for the same period in 2020[42]. - The company reported a significant other comprehensive loss of HKD 50,304,000 for the period, primarily due to revaluation losses on leasehold land and buildings[42]. - The company experienced a total comprehensive loss of HKD 39,265 thousand for the six months ended June 30, 2021, compared to a total comprehensive income of HKD 560 thousand for the same period in 2020[44]. - Total tax expenses for the six months ended June 30, 2021, amounted to HKD 5,908,000, significantly higher than HKD 984,000 for the same period in 2020[76]. Revenue Sources - For the six months ended June 30, 2021, total revenue was HKD 50,516,000, with property development and investment contributing HKD 3,616,000 and financial lending contributing HKD 46,900,000[58]. - Interest income from financial lending operations increased to approximately HKD 46.9 million, up by about HKD 42.4 million compared to HKD 4.5 million for the same period in 2020[8]. - Revenue from property sales in China for the six months ended June 30, 2021, was HKD 1,765, compared to HKD 2,422 for the six months ended September 30, 2020[64]. User Growth and Engagement - The number of registered users for the "X Wallet" mobile application increased from 43,489 in 2020 to 54,090 by June 30, 2021[10]. - The number of existing customers for "X Wallet" rose from 4,384 at the end of 2020 to 6,540 by June 30, 2021, contributing to improved performance in unsecured loans[10]. - The group anticipates growth in its fintech lending business, driven by increasing demand for unsecured loan services through its mobile app "X Wallet" which offers instant approval and 24/7 fund transfers[15]. Acquisitions and Investments - The acquisition of Zero Finance Group was completed on October 30, 2020, for a total consideration of HKD 404,109,000, with part of the payment made in shares and the remainder in cash[17][18]. - The acquisition is expected to create synergies between the group's existing mortgage lending business and Zero Finance's secured and unsecured lending operations[21]. - The acquisition of "X Wallet" is expected to provide potential mortgage loan customers and reduce reliance on agent referrals, thereby lowering loan business costs[22]. - The company is actively seeking investment opportunities in the Chinese property market, particularly in Guangdong Province, despite facing intense competition[16]. Financial Position - Total assets as of June 30, 2021, were HKD 1,330,116 thousand, a decrease of 2.8% from HKD 1,368,929 thousand as of December 31, 2020[43]. - Total equity amounted to HKD 1,121,156 thousand, down from HKD 1,160,421 thousand, reflecting a decline of 3.4%[44]. - The company reported a net cash outflow from operating activities of HKD 38,405 thousand for the six months ended June 30, 2021, compared to a net outflow of HKD 987 thousand for the same period in 2020[45]. - The cash and cash equivalents at the end of the period were HKD 219,187 thousand, an increase from HKD 192,189 thousand as of September 30, 2020[45]. Operational Insights - The group has a strong cash position with no significant capital expenditure commitments, relying on cash generated from operations and reserves[12]. - The group employs 54 staff members, with compensation based on performance, qualifications, and market statistics[14]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2021[33]. - The company has complied with the corporate governance code during the reporting period[34]. Market Conditions - The COVID-19 pandemic has impacted the global economy, but with vaccination rollouts, the economy is expected to gradually recover in the second half of the year[15]. - There is a growing demand for convenient and efficient lending services in Hong Kong, and "X Wallet" is well-positioned to meet this demand with its automated services[24]. - The company acknowledges the competitive challenges in the market but remains optimistic about the prospects of "X Wallet" personal loan services[24]. Shareholder Information - As of June 30, 2021, Lee & Leung (B.V.I.) Limited holds 1,252,752,780 shares, representing 46.96% of the company's issued share capital[29]. - Earth Axis Investment Limited holds 710,000,000 shares, accounting for 26.62% of the company's issued share capital[29]. - The company reported a total of 2,667,643,000 weighted average ordinary shares outstanding for the six months ended June 30, 2021, compared to 1,957,643,000 in the same period of 2020, reflecting an increase of 36%[77]. Expenses and Liabilities - Employee benefits expenses increased to HKD 7,008,000 for the six months ended June 30, 2021, compared to HKD 2,431,000 for the same period in 2020, representing a growth of 187%[66]. - Interest expenses for the financial lending segment were HKD 3,940 for the six months ended June 30, 2021, compared to HKD 8 for the same period in the previous year[61]. - The company’s total liabilities were HKD 208,960 thousand, a slight increase from HKD 208,508 thousand[43].