Financial Performance - The company reported a total revenue of 1,250,000,000 for the fiscal year ending December 31, 2023[41]. - The company’s financial performance and asset-liability summary for the past five fiscal years are detailed in the annual report[66]. - The auditor has issued an unqualified opinion on the group's continuous connected transactions[157]. Credit Quality and Provisions - The expected credit loss provision for the year ended December 31, 2023, is approximately HKD 49,389,000, a significant decrease from HKD 174,675,000 in 2022, indicating improved credit quality[2]. - The ratio of expected credit loss provision to receivables, loans, and interest is approximately 76.9% as of December 31, 2023, down from 79.4% in 2022, reflecting a positive trend in credit management[2]. Governance and Management Changes - The board of directors has undergone changes, with new appointments and resignations noted, which may impact governance and strategic direction[37]. - The board has established an investigation committee to look into complaints regarding improper conduct by the former chairperson, Ms. Lin, with the investigation expected to have no significant adverse impact on the group's financial position[172]. - The investigation into Ms. Lin's conduct is being conducted by an independent forensic investigation firm[196]. Environmental Commitment - The group is committed to environmental sustainability, implementing energy-saving measures such as using LED lighting and maintaining indoor temperatures to conserve energy[32]. - The company is committed to enhancing environmental awareness among employees and stakeholders, implementing energy-saving measures in its offices[59]. Customer Engagement - The group values customer feedback and employs various methods to understand customer trends and needs, ensuring the delivery of quality products and services[34]. Share Incentive Plan - The company has a stock reward plan aimed at recognizing and rewarding contributions to its growth and development[75]. - The maximum number of shares available for subscription under the share incentive plan is 2,892,871,925 shares, representing approximately 8.33% of the company's issued share capital as of the report date[77]. - A total of 4,580,000 incentive shares were granted under the share incentive plan for the year ending December 31, 2023, with a fair value of approximately HKD 101,000 recognized as share-based payment expense[95]. - The share incentive plan is effective for a period of 10 years from the adoption date[78]. - The company aims to attract suitable talent for further development through the share incentive plan[92]. - The share incentive plan was adopted on December 19, 2018, to reward eligible participants contributing to the group's growth and development[92]. Investments and Financial Strategy - The group has reduced its investment in a non-listed fund from approximately 69% to 28%, resulting in the loss of control over this investment and its removal from consolidation[10]. - The group has no specific plans for significant investments or capital assets beyond what is disclosed in the annual report[11]. - The company has faced challenges in obtaining sufficient audit evidence regarding investments in certain funds, which may significantly impact its financial performance[51]. - The company has been actively monitoring government policies and regulations to assess their impact on operations[57]. Compliance and Regulations - The company has complied with the disclosure requirements of the Hong Kong Listing Rules regarding related party transactions[158]. - The group has complied with the corporate governance code during the review period[181]. - The company has maintained sufficient public float to comply with listing rules[195]. Employee and Management Policies - The remuneration policy for employees and senior management is determined by the company's remuneration committee based on their merits, qualifications, and capabilities[167]. - The group contributes 5% of employees' relevant income to the Mandatory Provident Fund, with a monthly cap of HKD 1,500 per employee[191]. - The company has no significant management or administrative contracts related to its business during the year[191]. Shareholding Structure - Vered Cayman holds 10,049,310,000 shares, representing 28.95% of the issued share capital[163]. - Prosper Ascend Limited, owned by Liu Xueyi, holds 5,034,511,390 shares, accounting for 14.50% of the issued share capital[163]. - Shao Jinxia holds 3,500,000,000 shares, which is 10.08% of the issued share capital[163]. - China Minsheng Investment Co., Ltd. holds 2,072,618,610 shares, representing 5.97% of the issued share capital[163]. - CMI Financial Holding Company Limited holds 1,430,000,000 shares, accounting for 4.12% of the issued share capital[163]. - The total number of issued ordinary shares as of December 31, 2023, is 34,714,459,250 shares[187]. - The company has no knowledge of any person holding more than 5% of the issued share capital as of December 31, 2023[165].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported a net loss of HKD 23,561,000, a significant improvement compared to a net loss of HKD 622,808,000 in the previous year, representing a reduction of approximately 96.2%[9] - The company achieved a net income from financial assets/liabilities of HKD 81,810,000, a turnaround from a loss of HKD 447,279,000 in the prior year[9] - The company reported total comprehensive loss of HKD 166,344,000 for the year, a significant decrease from HKD 785,475,000 in the prior year, reflecting a reduction of approximately 78.8%[10] - The company reported a total income of HKD 114,385,000 for 2023, a decrease of 53% from HKD 243,757,000 in 2022[42] - The company reported a loss attributable to shareholders of approximately HKD 24.8 million for the year ending December 31, 2023, a significant reduction from a loss of approximately HKD 623.3 million in the previous year[129] Expenses and Liabilities - The company’s operating expenses decreased, with employee costs and related expenses at HKD 78,086,000, down from HKD 96,029,000, a reduction of about 18.7%[9] - The company incurred a tax expense of HKD 8,317,000 in 2023, compared to a tax benefit of HKD (8,060,000) in 2022[40] - Total liabilities rose to HKD 329,539,000 in 2023, compared to HKD 309,046,000 in 2022, indicating a growth of 6.5%[46] - Total operating expenses for the year ending December 31, 2023, were approximately HKD 146,906,000, a reduction of about 22.3% from HKD 188,997,000 in 2022[155] Assets and Equity - Total equity attributable to equity holders remained stable at HKD 4,454,374,000, unchanged from the previous year[7] - The company’s total equity amounted to HKD 3,988,957,000, compared to HKD 4,155,200,000 in the previous year, reflecting a decrease of approximately 4.0%[7] - Total assets as of December 31, 2023, amounted to HKD 4,318,496,000, a decrease from HKD 4,464,246,000 in 2022, representing a decline of approximately 3.3%[11] - The company’s total liabilities and equity figures were not provided in the extracted data, indicating a need for further details in future reports[11] Credit Loss and Receivables - The expected credit loss for the year was HKD 49,389,000, down from HKD 174,675,000 in the previous year, indicating a decrease of approximately 71.7%[9] - The expected credit loss provision for margin deposits was HKD 63,566,000, resulting in a net accounts receivable of HKD 54,776,000[75] - The expected credit loss provision for loans and interest was HKD 263,310,000, an increase from HKD 260,266,000 in the previous year[82] - The group aims to enhance its credit policies and assessments to maintain the quality of receivables, with expected credit loss provisions representing about 76.9% of total receivables as of December 31, 2023[158] Investment and Income - Total interest income reached HKD 76,241 million, with a significant contribution from investment income of HKD 54,807 million[27] - Investment income decreased to HKD 11,384,000 in 2023 from HKD 18,394,000 in 2022, representing a decline of 38.1%[42] - The net income from financial assets/liabilities was HKD 196,195 million, showing a strong performance in this segment[30] - The fair value of financial assets measured at fair value through profit or loss was HKD 4,956,252 million, up from HKD 2,656,136 million in 2022[67] Strategic Outlook - The company plans to enhance its market expansion strategies, focusing on increasing revenue from external clients[30] - Future outlook includes potential new product developments and technology advancements to drive growth[30] - The company aims to improve operational efficiency to mitigate losses and enhance profitability in the upcoming fiscal year[30] - The company is focused on optimizing asset allocation and improving capital utilization efficiency by disposing of low-efficiency assets and participating in secondary market bond restructuring[143] Market Conditions and Challenges - The Hong Kong capital market faced significant challenges in 2023, with a cumulative decline of 13.8% in the Hang Seng Index, marking the first time in history that it experienced four consecutive years of decline[114] - The company maintained a prudent management approach in 2023, focusing on stabilizing its business and team while enhancing internal control quality and risk management[115] - The outlook for Hong Kong's economy is positive, with expectations of recovery driven by mainland China's economic rebound and global economic stabilization[145] Employee and Governance - The group had 64 employees as of December 31, 2023, down from 75 employees as of December 31, 2022[165] - The company has adhered to all applicable corporate governance code provisions throughout the year[195] - The audit committee reviewed the consolidated financial statements and assessed the potential impact of changes in accounting principles and policies on the company's financial statements[199]

Financial Position - Total assets as of June 30, 2023, amounted to HKD 4,357,325, a decrease from HKD 4,464,246 as of December 31, 2022[5] - Non-current assets totaled HKD 2,710,823, compared to HKD 2,504,470 in the previous period[5] - Cash and cash equivalents were reported at HKD 733,334, down from HKD 1,028,332[5] - The total assets of the company as of June 30, 2023, amounted to HKD 440,873,000, compared to HKD 273,589,000 as of December 31, 2022[56] - The total fair value of financial assets and liabilities as of June 30, 2023, was HKD 2,275,098,000, reflecting an increase from HKD 2,114,835,000 as of December 31, 2022[98] - The total assets classified as non-current assets increased from HKD 349,256,000 to HKD 376,103,000, a rise of 7.7%[121] - The total assets increased from HKD 380,426,000 to HKD 435,464,000, reflecting a growth of 14.5%[121] - The total liabilities for the group were not explicitly stated but included financial liabilities with cash flows totaling HKD 155,510[32] Revenue and Income - The company reported a significant increase in interest income and fee income, totaling HKD 41,147,000 for the six months ended June 30, 2023, compared to HKD 15,499,000 for the same period in 2022[61] - Revenue from customer contracts was HKD 5,486,000 for the six months ended June 30, 2023, compared to HKD 2,100,000 for the same period in 2022[66] - The total revenue from external clients in Hong Kong was HKD 22,276,000 for the six months ended June 30, 2023, down from HKD 30,034,000 in the previous period[64] - Revenue from asset management fees for the six months ended June 30, 2023, was HKD 695,000, compared to HKD 3,542,000 for the same period in 2022[164] - Dividend income for the six months ended June 30, 2023, was HKD 591,000, an increase from HKD 346,000 for the same period in 2022[164] - Revenue from external customers was HKD 149,973,000, with HKD 144,969,000 from Hong Kong, HKD 1,333,000 from China, HKD 3,451,000 from Japan, and HKD 220,000 from Canada[81] Financial Performance - The group reported a basic loss per share of approximately HKD 37,582,000 for the six months ended June 30, 2023, compared to a loss of HKD 300,010,000 for the same period in 2022[109] - The group experienced a loss on financial assets/liabilities of HKD (241,584,000), with significant losses reported in Hong Kong (HKD 196,913,000) and China (HKD 44,671,000)[81] - The group recognized a gain of HKD 89,925,000 in profit or loss from financial assets during the reporting period[98] Asset Management and Investments - The group sold financial assets at fair value through profit or loss, generating proceeds of HKD 231,133, significantly lower than HKD 1,186,046 in the previous year[36] - The group purchased financial assets at fair value through profit or loss totaling HKD (396,114), a decrease from HKD (1,267,112) in the prior period[36] - The total value of financial assets at fair value through profit or loss was HKD 2,077,823, compared to HKD 1,906,019 previously[5] - The fair value of non-listed equity investments was reported at HKD 1,103,318,000, with a market approach indicating a potential increase or decrease of HKD 110,000,000 based on a 10% change in market multiples[58] - The fair value of non-listed investment funds increased from HKD 109,997,000 to HKD 146,648,000, representing a growth of 33.2%[121] - The fair value of listed equity investments rose from HKD 218,050,000 to HKD 228,467,000, an increase of 4.1%[121] - The fair value of listed debt investments increased from HKD 52,379,000 to HKD 60,349,000, a growth of 15.5%[121] - The expected credit loss provision for debt investments increased by HKD 25,796,000 during the period, totaling HKD 587,096,000 as of June 30, 2023[121] - The expected credit loss provision for receivables decreased by HKD 4,161,000, amounting to HKD 256,105,000 as of June 30, 2023[129] - The provision for expected credit losses for financial assets measured at amortized cost increased by HKD 3,255,000, totaling HKD 137,034,000 as of June 30, 2023[126] Compliance and Risk Management - The company’s credit risk management strategies are in place to mitigate potential financial risks[46] - The company’s financial risk management practices are designed to ensure compliance with relevant accounting standards and to maintain financial stability[46] - The company has applied the amendments to Hong Kong Accounting Standards No. 12, which clarifies the recognition of deferred tax assets and liabilities, with no significant impact on the financial position[43] - The corporate income tax rate in China remained at 25% for both the current and previous reporting periods[85] - The company has disclosed its exposure to second pillar income tax risks, although it is not within the scope of the second pillar model rules[43] Shareholder Information - The weighted average number of ordinary shares in issue was approximately 32,979,049,000 for the six months ended June 30, 2023, consistent with the previous period[109] - The total number of shares outstanding as of June 30, 2023, was 34,714,459, with a total equity of HKD 4,454,374,000[161] Contingent Liabilities and Commitments - The company does not anticipate any significant contingent liabilities as of June 30, 2023[168] - The company has not made any provisions for claims arising from ongoing litigation due to high uncertainty regarding existing liabilities[167] - The group has not made any provisions for contingent liabilities related to ongoing legal claims amounting to approximately USD 17,090,461[184] - The group has irrevocable capital commitments totaling approximately HKD 285,485,000 as of June 30, 2023, slightly down from HKD 292,829,000 as of December 31, 2022, reflecting a decrease of about 2.5%[186] Operational Insights - The group received management and performance fees of HKD 695,000 from related parties for the six months ended June 30, 2023, down from HKD 3,542,000 for the same period in 2022, indicating a decrease of about 80.4%[182] - The group reported a short-term loan payable of HKD 23,053,000 as of June 30, 2023, with no comparable figure for the previous year[182] - The group continues to explore new investment opportunities and strategies to enhance market presence and operational efficiency[199] - There are ongoing communications with regulatory bodies regarding past investigations, with no disciplinary actions taken as of the report date[185] - The group has not reported any significant post-reporting date events up to the date of this report[187] - The financial data presented complies with the relevant rules of the Hong Kong Stock Exchange and the Hong Kong Accounting Standards[189]

Financial Performance - For the six months ended June 30, 2023, total revenue was HKD 59,260,000, a decrease of 60.5% compared to HKD 149,973,000 for the same period in 2022[13] - Interest income for the same period was HKD 41,147,000, down 68.3% from HKD 130,025,000 in the previous year[13] - Commission and fee income was HKD 15,499,000, a slight decrease of 4.3% from HKD 16,196,000 in the prior year[13] - Investment income decreased to HKD 2,614,000, down 30.4% from HKD 3,752,000 in the same period last year[13] - The group reported a net loss of HKD 36,399,000 for the six months ended June 30, 2023, compared to a net loss of HKD 300,072,000 for the same period in 2022, representing a significant improvement[20] - The group incurred a total comprehensive loss of HKD 126,202,000 for the period, compared to HKD 295,790,000 in the prior year, reflecting a decrease of about 57%[21] - The basic and diluted loss per share improved to HKD 0.11 from HKD 0.91, reflecting a positive trend in financial performance[20] Assets and Liabilities - Total equity as of June 30, 2023, was HKD 3,992,599,000, down from HKD 4,155,200,000 as of December 31, 2022, representing a decrease of 3.9%[9] - Total liabilities increased to HKD 364,726,000 from HKD 309,046,000, reflecting an increase of 17.9%[9] - The net value of current assets was HKD 1,287,330,000, down from HKD 1,655,098,000, indicating a decrease of 22.3%[9] - The company’s total assets less current liabilities were HKD 3,998,153,000, down from HKD 4,159,568,000, a decrease of 3.9%[9] - The total assets of the group amounted to HKD 4,357,325,000 as of June 30, 2023, down from HKD 4,464,246,000 as of December 31, 2022[22] - The group’s cash and cash equivalents decreased to HKD 733,334,000 from HKD 1,028,332,000, a decline of approximately 29%[22] Credit Loss and Provisions - The expected credit loss for the period was HKD 32,093,000, a significant reduction from HKD 119,462,000 in the previous year[20] - The expected credit loss provision for the six months ended June 30, 2023, was HKD (32,093,000)[43] - The expected credit loss provision for receivables as of June 30, 2023, was HKD 256,105,000, a decrease of HKD 4,161,000 compared to HKD 260,266,000 as of December 31, 2022[114] Cost Management - Employee costs and related expenses decreased to HKD 39,540,000 from HKD 43,891,000, indicating a reduction of approximately 10%[20] - Total costs for the six months ended June 30, 2023, were approximately HKD 71,399,000, a decrease of about 22% compared to HKD 91,062,000 for the same period in 2022, primarily due to effective cost control measures implemented by the group[102] Governance and Compliance - The company’s board approved the financial statements for publication on August 29, 2023[1] - The group aims to continuously improve existing systems and internal control processes to enhance corporate governance[124] - The audit committee has reviewed the accounting principles and practices adopted by the group and discussed internal controls and financial reporting matters with management[154] Business Strategy and Market Focus - The company plans to expand its business in the Asia-Pacific region, particularly in mainland China, Japan, and Canada, leveraging regional synergies[98] - The company is focused on providing distinctive financial services to meet customer demands in the Asia-Pacific market[98] Accounting Standards - The group has adopted new accounting standards effective January 1, 2023, but these have no significant impact on the financial position[30] - The revisions to Hong Kong Accounting Standards clarify the distinction between accounting estimates and policy changes, effective from January 1, 2023[26] - The group’s financial reporting is aligned with the revised standards, ensuring consistency in accounting estimates[26] Dividend and Shareholder Information - The company did not declare any interim dividends for the six months ended June 30, 2023[52] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2023[128] Economic Context - The overall economic growth rate for the first half of 2023 was 5.5%, but growth momentum remained weak due to various external factors[120]

Corporate Governance - The company has established an audit committee to review and supervise the financial reporting process and internal controls, with a meeting held on March 27, 2023, to review the consolidated financial statements for the year ending December 31, 2022[14]. - The company complied with the corporate governance code, except for the provision that the roles of chairman and CEO should be separated, which was not adhered to until September 30, 2022[17]. - The company has appointed Mr. Li Feng as CEO effective October 1, 2022, following the resignation of Mr. Watanabe Tomohiro from the CEO position[17]. - The company’s board held five meetings during the year to ensure all major issues were covered[8]. - The board of directors is collectively responsible for the overall management of the company and has established specific committees to assist in governance[9]. - The company has provided comprehensive onboarding materials for newly appointed directors to ensure they understand their responsibilities under relevant regulations[13]. - The company’s governance practices are based on the principles and code provisions set out in the corporate governance code in Appendix 14 of the listing rules[16]. - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors[20]. - The company has appointed a new auditor, Zhongshen Zhonghuan (Hong Kong) CPA Limited, on November 8, 2022, following the resignation of PwC[27]. - The company’s board of directors reported no significant events affecting the company since the end of the fiscal year[152]. - The company’s independent non-executive directors have confirmed their independence as per the listing rules[182]. Financial Performance - The company recorded a loss of approximately HKD 622,808,000 for the year ended December 31, 2022, compared to a profit of HKD 70,180,000 in 2021, primarily due to increased losses from associated companies and higher operating expenses[79]. - Total operating expenses for the year ended December 31, 2022, were approximately HKD 188,997,000, an increase of about 29.4% from HKD 146,026,000 in 2021[79]. - The company’s consolidated revenue for the fiscal year ended December 31, 2022, was approximately HKD 243,757,000, a decrease of about 19% compared to HKD 302,540,000 in the previous year, primarily due to fluctuations in the investment market affecting asset management fee income[60]. - Total revenue for the year 2022 was approximately HKD 243,757,000, a decrease of 19% compared to HKD 302,540,000 in 2021[103]. - Interest income decreased by 11% to HKD 194,900,000 from HKD 219,155,000 in the previous year[103]. - Commission and fee income saw a significant decline of 56%, falling to HKD 30,463,000 from HKD 69,841,000[103]. - Investment income increased by 36%, reaching HKD 18,394,000 compared to HKD 13,544,000 in 2021[103]. - The expected credit loss provision for the year ended December 31, 2022, was approximately HKD 174,675,000, a decrease from HKD 496,587,000 in 2021, with the provision ratio for receivables at 79.4%[82]. - Cash inflow from operating activities for the year ended December 31, 2022, was approximately HKD 473,946,000, compared to HKD 501,616,000 in 2021[80]. - The company has sufficient financial resources to meet its operational requirements[108]. Market and Business Strategy - The company plans to enhance its asset management and wealth management capabilities in 2023, aiming to increase asset management scale and effectively utilize financial licenses across regions[51]. - The company has actively expanded its business in mainland China, Japan, and Canada since 2020, with the Japanese company expected to exceed JPY 150 billion in fund scale by Q1 2023[50]. - The company aims to leverage flexible performance mechanisms and effectively utilize talent to enhance customer service capabilities[51]. - The company is actively researching new business opportunities and enhancing its financial technology capabilities to increase corporate value[51]. - The company anticipates continued market expansion in Japan and Canada, enhancing license management and service levels while diversifying product offerings[50]. - The company aims to expand its asset management and investment banking services, leveraging opportunities from the Greater Bay Area economic integration[102]. - The company plans to explore innovative business models to capture market opportunities and expand its business footprint[102]. Risk Management - The company plans to implement strict risk management to mitigate the impact of market volatility and seek potential investment opportunities to maximize shareholder value[94]. - The company is focusing on risk analysis and monitoring for key industries, particularly real estate, to identify undervalued opportunities while controlling overall market risks[50]. - The company will continue to strengthen its credit policies and assessments to maintain the credit quality of receivables[82]. - The company is closely monitoring government policies and regulations, as non-compliance could lead to regulatory penalties or business operation suspensions[125]. Shareholder Information - The company has no distributable reserves as of December 31, 2022, remaining at zero Hong Kong dollars, consistent with the previous year[158]. - The company does not recommend the payment of any dividends for the year ended December 31, 2022, remaining at zero Hong Kong dollars, similar to the previous year[180]. - The company has a total of 462,072,000 shares representing 1.33% of the issued share capital that are subject to re-election at the upcoming annual general meeting[163]. - The company has a total of 34,714,459,250 shares issued as of December 31, 2022[187]. - The company has a total of 2,892,871,925 shares available for incentive awards[179]. - The current authorized shares available for issuance under the plan amount to 241,365,125 shares, representing approximately 0.70% of the issued shares as of the report date[190]. Environmental and Social Responsibility - The company has implemented energy-saving measures in several office properties to enhance environmental sustainability[153]. - The company did not make any charitable donations during the year ended December 31, 2022, compared to HKD 42,000 in donations made in 2021[133].

Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 243,757,000, a decrease of 19.4% from HKD 302,540,000 in 2021[2] - The company reported a net loss of HKD 622,808,000 for the year, compared to a profit of HKD 70,180,000 in 2021[8] - Basic and diluted loss per share was HKD (1.89), compared to earnings of HKD 0.22 per share in the previous year[8] - The company reported a loss attributable to shareholders of approximately HKD 623,263,000 for the year 2022, compared to a profit of HKD 71,189,000 in 2021[61] - The net loss before tax for the year was HKD 40,940,000, compared to a profit of HKD 36,632,000 in the previous year, indicating a significant shift in financial performance[24] - The company recorded a loss attributable to shareholders of approximately 623,263,000 HKD for the year ending December 31, 2022, compared to a profit of approximately 71,189,000 HKD for the previous year[164] Revenue Breakdown - Interest income decreased to HKD 194,900,000, down 11.0% from HKD 219,155,000 in the previous year[2] - Commission and fee income fell significantly by 56.4% to HKD 30,463,000 from HKD 69,841,000[2] - Investment income increased to HKD 18,394,000, up 36.0% from HKD 13,544,000[2] - The company's revenue for the year ended December 31, 2022, was HKD 2,393,833,000, a decrease from HKD 2,806,088,000 in 2021, representing a decline of approximately 14.7%[28] - Total interest income reached HKD 218,806 thousand, with securities brokerage contributing HKD 5,167 thousand and investment holding contributing HKD 213,639 thousand[44] - Commission and fee income amounted to HKD 60,010 thousand, with asset management generating HKD 53,337 thousand and investment income at HKD 13,544 thousand[47] Assets and Liabilities - Total liabilities decreased to HKD 309,046,000 from HKD 527,098,000, a reduction of 41.3%[6] - The company’s total assets less current liabilities amounted to HKD 4,159,568,000, down from HKD 4,948,705,000[6] - Total assets decreased from HKD 5,467,773,000 in 2021 to HKD 4,464,246,000 in 2022, representing a decline of approximately 18.3%[10] - Current assets decreased significantly from HKD 2,839,292,000 in 2021 to HKD 1,959,776,000 in 2022, a reduction of approximately 30.9%[10] - The company’s non-listed equity investments decreased from HKD 1,620,791,000 in 2021 to HKD 1,461,173,000 in 2022, a reduction of approximately 9.8%[28] - The company’s total liabilities included non-current liabilities of HKD 70,615,000, down from HKD 115,785,000 in the previous year, indicating a decrease of about 39%[28] Cash Flow and Liquidity - Cash inflows from operating activities, investing activities, and financing activities were approximately HKD 473,946,000, (HKD 18,315,000), and (HKD 177,096,000) respectively for the year ended December 31, 2022[81] - The company’s liquidity improved by the end of 2022, with cash reserves increasing compared to the beginning of the year[187] - The expected credit loss provision amounted to approximately HKD 174,675,000 as of December 31, 2022, down from HKD 496,587,000 in 2021, with a provision coverage ratio of 79.4%[82] Strategic Initiatives - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year[9] - The company aims to leverage its position as an international financial center in Hong Kong to expand asset management and investment banking services, focusing on innovative business models[160] - The company plans to explore opportunities arising from the integration of the Greater Bay Area economy and the interconnection of capital markets between Hong Kong and mainland China[160] - The company aims to enhance its financial management capabilities and asset utilization levels, focusing on high-net-worth clients and quality enterprises[190] Market Conditions - The company faced significant market volatility due to global inflation and geopolitical tensions, impacting its overall financial performance[73] - The macroeconomic environment, particularly the impact of real estate debt and stock market fluctuations, has negatively affected the company's performance, although these effects are considered limited and temporary[156] - The total amount of new IPOs in Hong Kong decreased by 68% year-on-year, with a total fundraising amount of HKD 1,045.7 billion in 2022[185] Audit and Compliance - The company has established an audit committee to review and supervise its financial reporting processes and internal controls[109] - The company has confirmed that its consolidated financial statements for the year ended December 31, 2022, have been reviewed by its auditors and are consistent with the draft financial statements[110] - The company’s financial performance for the year ended December 31, 2022, was subject to a qualified opinion from auditors, indicating potential concerns regarding the financial statements[34] Risk Management - The company has focused on risk control and liquidity management in response to global market volatility in 2022[186] - The company will closely monitor its foreign exchange risks and consider hedging against significant foreign exchange exposures when necessary[104] - The company has implemented a competitive compensation package and performance evaluation system to reward and recognize employees[85]

Financial Performance - In the first half of 2022, the company's total revenue was approximately HKD 149.973 million, an increase of 11% compared to HKD 134.766 million in the same period of 2021[24] - Interest income rose to HKD 130.025 million, reflecting a 13% increase from HKD 114.725 million year-on-year[24] - The company reported a decrease in investment income to HKD 3.752 million, down 14% from HKD 4.372 million in the previous year[24] - The company recorded a loss of approximately HKD 300,720,000 for the six months ended June 30, 2022, compared to a profit of HKD 255,765,000 for the same period in 2021, primarily due to a net loss of HKD 241,584,000 from financial assets and liabilities[67] - The company reported a total comprehensive loss of HKD 595,862,000 for the six months ended June 30, 2022, compared to a profit of HKD 66,765,000 in the same period last year[149] - Basic and diluted loss per share for the period was HKD (0.91), compared to earnings of HKD 0.78 per share in the same period of 2021[124] - The company experienced a financial loss of HKD 241,584,000 from financial assets/liabilities, contrasting with a gain of HKD 288,150,000 in the previous year[123] Assets and Liabilities - The company's total assets as of June 30, 2022, were approximately HKD 4.689 billion, a decrease of about 14.2% from HKD 5.468 billion as of December 31, 2021[25] - As of June 30, 2022, the group's total assets amounted to approximately HKD 3,151,237,000, a decrease from HKD 3,859,153,000 as of December 31, 2021[39] - Cash and cash equivalents decreased to HKD 454,757,000 from HKD 780,823,000, a decline of approximately 41.7%[151] - The company's equity attributable to owners decreased to HKD 4,454,374,000 from HKD 4,934,686,000, a decline of approximately 9.8%[151] - The total liabilities decreased to HKD 344,312,000 from HKD 527,098,000, indicating a reduction of about 34.7%[151] - Current liabilities totaled HKD 331,324,000, down from HKD 519,068,000, showing a reduction of about 36.2%[151] Operational Efficiency - The total cost for the six months ended June 30, 2022, was approximately HKD 91,062,000, a reduction of about 12% compared to HKD 103,589,000 for the same period in 2021[44] - Employee costs and related expenses totaled approximately HKD 43,891,000 for the six months ended June 30, 2022, down from HKD 47,181,000 for the same period in 2021, representing a decrease of about 6.9%[70] - The company is committed to clarifying deficiencies in its business and governance and will continue to improve existing systems and internal control processes[36] Risk Management - The company aims to enhance its risk management capabilities and properly address existing risk projects while monitoring potential risks[15] - The group plans to implement strict risk control measures to mitigate the impact of market volatility on investment performance[41] - The company is closely monitoring foreign exchange risks and will consider hedging significant foreign exchange risks as necessary[76] Strategic Initiatives - The company plans to expand its business in the Asia-Pacific region, including mainland China, Japan, and Canada, leveraging low-cost capital and resources in Hong Kong[15] - The company will continue to establish and launch a series of real estate funds through its Japanese subsidiary to strengthen fundraising and investment capabilities[15] - The company is focusing on expanding its asset management services and enhancing its advisory services to drive future growth[167] - The company plans to explore new market opportunities and potential acquisitions to strengthen its market position[167] Changes in Management - The company appointed a new CEO, Li Feng, effective from September 30, 2022, following the resignation of the previous CEO, Watanabe Tomohiro[118] Compliance and Governance - The company has adopted the standard code of conduct for securities trading as per the listing rules, with all board members confirming compliance[120] - The company has adopted new accounting standards effective from January 1, 2022, which may impact future financial reporting[189]

Financial Performance - In 2021, the company experienced a slight decrease in operating income, but saw gains from overseas layout and collaboration with well-known market institutions, leading to an increase in asset management scale[39]. - The company's consolidated revenue for the year ended December 31, 2021, was approximately HKD 302,540,000, a slight decrease of about 5% compared to HKD 318,327,000 in 2020[65]. - Interest income decreased by 20% to HKD 219,155,000 in 2021 from HKD 273,653,000 in 2020, while commission and fee income increased by 144% to HKD 69,841,000 from HKD 28,570,000[66]. - The company recorded a profit of approximately HKD 70,180,000 for the year ended December 31, 2021, down from HKD 322,291,000 in 2020, primarily due to a significant increase in financial asset impairments[66]. - Total operating expenses for the year were approximately HKD 146,026,000, a reduction of about 45% from HKD 266,018,000 in 2020, attributed to effective cost control measures[67]. - As of December 31, 2021, total assets were approximately HKD 5,467,773,000, a decrease of about 11.6% from HKD 6,187,043,000 in 2020[71]. - The company reported a cash and bank balance of approximately HKD 780,823,000 as of December 31, 2021, up from HKD 626,976,000 in 2020, indicating a strong financial position[74]. - The capital to debt ratio improved to 3.5% as of December 31, 2021, compared to 9.9% in 2020, reflecting a more stable capital structure[73]. Business Expansion and Strategy - The company actively expanded its business in mainland China, Japan, and Canada, achieving the first cross-border business transaction and establishing a real estate fund in Japan[44]. - The company plans to enhance its asset management and wealth management capabilities, focusing on increasing the asset management scale across Hong Kong, Japan, and China[49]. - Future strategies include expanding into markets such as mainland China, Japan, and Canada, while leveraging Hong Kong's position as an international financial center[65]. - The company aims to improve its financing capabilities and gradually increase leverage levels while actively enhancing its fintech capabilities to boost corporate value[49]. - The company plans to explore more technologically advanced business models and expand its asset management and investment banking services[65]. Risk Management - The company effectively managed investment asset risks by proactively clearing potential risk assets, outperforming the industry average in risk management[46]. - The company has strategically reduced its exposure to fixed-income assets and real estate risks, successfully clearing potential risk assets before a broader market downturn[58]. - The group faces significant risks, including credit risk, interest rate risk, liquidity risk, operational risk, and market risk, which may affect long-term profitability and growth[103]. - The group anticipates continued volatility in the stock market, which may impact investment performance; strict risk management will be implemented to mitigate market fluctuations[97]. Human Resources and Governance - The company introduced a competitive compensation system to attract and retain talent, focusing on investment banking, research, and risk management capabilities[48]. - The group had 83 employees as of December 31, 2021, compared to 77 employees on December 31, 2020[84]. - The board of directors includes executive directors, non-executive directors, and independent non-executive directors, with key appointments made in 2021 and 2022[121]. - The company has undergone changes in its board composition, with several directors appointed and resigned in 2021[121]. - The company has complied with most of the corporate governance code provisions during the fiscal year[188]. - The company is focused on enhancing its business strategy and operational efficiency through its governance structure[197]. Investments and Shareholder Returns - The group reported a total investment value of approximately HKD 3,859,153,000 as of December 31, 2021, down from HKD 4,809,020,000 in 2020[92]. - The investment in eToro Group Ltd. amounted to HKD 385,508,000 with a fair value of HKD 1,265,471,000 as of December 31, 2021, representing a 23.1% unrealized gain[92]. - The group’s investment strategy aims to enhance shareholder returns by incorporating various investment tools, including listed equity securities and debt instruments, to achieve risk-adjusted returns[97]. - The group has not declared any dividends for the fiscal year ending December 31, 2021, consistent with the previous year[114]. Environmental and Social Responsibility - The group has implemented energy-saving measures in its offices, including the use of LED lighting and internal recycling programs to reduce environmental impact[109]. - The group will continue to review its environmental policies and consider adopting more sustainable practices in its operations[110]. - The group reported a charitable contribution of HKD 42,000 during the year, alongside a donation of 500,000 medical masks in 2020 to combat the pandemic[117]. Market Conditions - In 2021, the number of IPOs in Hong Kong decreased by 35%, with total fundraising down by 19%, marking the first time since 2012 that Hong Kong's IPO fundraising fell out of the global top three[54]. - The bond market performed well, with a record 508 new bonds listed in 2021, representing an 18% increase from 2020, and total fundraising reaching HKD 1.55 trillion[55]. - The global economic recovery is expected to support Hong Kong's exports, but growth in 2022 may slow due to various uncertainties, particularly related to the pandemic[61]. - The company anticipates new opportunities in sectors such as new energy, new materials, and military technology due to ongoing economic reforms in China[61].

Audit and Financial Reporting - The company will delay the publication of the audited annual results for the year ending December 31, 2021, due to the need for additional time to complete the audit process[2]. - The company has not yet finalized the financial performance figures for the fiscal year 2021, which are based on management accounts and have not been reviewed by auditors[5]. - The company is working closely with independent professional advisors and auditors to expedite the audit process[4]. - The company is required to publish the annual results by March 31, 2022, according to listing rules[4]. - The audit committee has reviewed the fiscal year 2021 figures, but the audit is still ongoing[6]. - The company anticipates that the audited annual results will be published around May 31, 2022, subject to the completion of the audit[5]. - The company has established an independent investigation committee to oversee the audit process and related investigations[3]. - The independent investigation committee will appoint independent professional advisors to conduct investigations into certain investments made by the group's asset management subsidiary[3]. - The company has indicated that the timing of the publication of the audited results may change, and further announcements will be made to inform shareholders[5]. - The company is currently under a trading suspension pending the resolution of the audit and investigation matters[1]. - The audit committee reviewed the unaudited annual performance for the year ending December 31, 2021, but the audit process is still ongoing due to additional investigations required by the auditors[106]. - The company may delay the issuance of the 2021 annual report, which is required to be sent to shareholders by April 30, 2022[111]. - The company will issue a further announcement after the completion of the audit, detailing significant differences between the audited and unaudited financial results for the year ending December 31, 2021[112]. - Trading of the company's shares will be suspended from April 1, 2022, until further notice due to the unaudited financial data related to the 2021 annual performance[114]. Financial Performance - Total revenue for the year 2021 was HKD 302,540 million, a decrease of 4.5% compared to HKD 318,327 million in 2020[8]. - Net profit for the year 2021 was HKD 45,980 million, significantly down from HKD 322,291 million in 2020, representing a decline of approximately 85.7%[10]. - Basic earnings per share for 2021 was HKD 0.14, compared to HKD 0.98 in 2020, indicating a decrease of 85.7%[8]. - The company reported a net loss of HKD 436,379 million in comprehensive income for 2021, compared to a profit of HKD 269,302 million in 2020[10]. - The net profit before tax for the year ended December 31, 2021, was HKD 144,671 million, compared to HKD 541,130 million in 2020, showing a decline of 73.3%[26]. - The group recorded a profit of approximately HKD 45,980,000 for the year ended December 31, 2021, significantly down from HKD 322,291,000 in 2020, primarily due to a substantial increase in financial asset impairment[76]. - Total operating expenses for the year ended December 31, 2021, were approximately HKD 175,026,000, a reduction of about 34% from HKD 266,018,000 in 2020, attributed to effective cost control measures[78]. - Cash flow from operating activities for the year ended December 31, 2021, was approximately HKD 501,616,000, compared to a cash outflow of HKD 1,493,533,000 in 2020[79]. Assets and Liabilities - Total assets as of December 31, 2021, amounted to HKD 5,472,573 million, down from HKD 6,187,043 million in 2020, reflecting a decline of approximately 11.5%[12]. - Non-current assets totaled HKD 2,633,281 million in 2021, a decrease from HKD 3,394,991 million in 2020, representing a decline of about 22.5%[12]. - Current assets increased to HKD 2,839,292 million in 2021, compared to HKD 2,792,052 million in 2020, showing a growth of approximately 1.7%[12]. - The company's total equity amounted to HKD 5,472,573 thousand, a decrease from HKD 6,187,043 thousand in the previous year, reflecting a decline of approximately 11.5%[15]. - Total liabilities were reported at HKD 556,098 thousand, down from HKD 898,421 thousand, indicating a reduction of about 38%[15]. - The company’s retained earnings showed a significant change, with a loss of HKD 1,034,730 thousand compared to a profit of HKD 430,290 thousand in the previous year[15]. - Non-controlling interests decreased from HKD 5,549,934 thousand to HKD 4,910,486 thousand, representing a decline of approximately 11.5%[15]. - The total assets of the company were not explicitly stated in the provided documents, but the equity and liabilities suggest a significant restructuring in the financial position[15]. Revenue Breakdown - Total revenue for the year ended December 31, 2021, was HKD 757,573 million, compared to HKD 675,425 million for the year ended December 31, 2020, representing an increase of 12.2%[26]. - Interest income for the year ended December 31, 2021, was HKD 218,806 million, up from HKD 269,206 million in the previous year, indicating a decrease of 18.7%[26]. - Commission and fee income reached HKD 60,010 million for the year ended December 31, 2021, compared to HKD 28,570 million in 2020, reflecting a significant increase of 109.5%[26]. - Investment income for the year ended December 31, 2021, was HKD 13,544 million, slightly down from HKD 16,104 million in 2020, a decrease of 15.9%[26]. - Revenue from external customers in Hong Kong for the year ended December 31, 2021, was HKD 291,651 million, while the total for the same period in 2020 was HKD 304,429 million, indicating a decrease of 4.3%[28]. - The company reported a net loss from external customers in China of HKD 38,816 million for the year ended December 31, 2021, compared to a net profit of HKD 69,219 million in 2020[28]. - The total assets under management as of December 31, 2021, were HKD 460,818 million, compared to HKD 352,583 million in 2020, representing an increase of 30.7%[26]. Strategic Initiatives - The company plans to expand its market presence and invest in new technologies to enhance service offerings in the upcoming fiscal year[26]. - The company has indicated a focus on strategic acquisitions to bolster its market position and diversify its service portfolio moving forward[26]. - The company aims to expand its business scale and enhance financial performance while exploring opportunities in technology finance and international markets[72]. - The company plans to strengthen its asset management and investment banking capabilities, focusing on the Greater Bay Area and cross-border capital market integration[74]. - The company will continue to enhance its research and investment capabilities, product design skills, and customer service levels[72]. - The ongoing geopolitical tensions between the US and China are expected to drive economic reforms in China, creating new opportunities in sectors like new energy and materials[71]. Credit and Risk Management - The expected credit loss provision amounted to approximately HKD 496,587,000, a significant increase from HKD 20,103,000 in 2020[82]. - The ratio of expected credit loss provision to receivables and financial assets was approximately 48.2% as of December 31, 2021, compared to 16.6% in 2020[82]. - The expected credit loss provisions for the year included approximately HKD 36,632,000, HKD 98,559,000, and HKD 345,844,000 for various financial assets[89]. - The company aims to further improve its credit policies and assessments to maintain the quality of its financial assets[90]. - The company continues to monitor foreign exchange risks closely and will consider hedging against significant foreign exchange risks when necessary[93]. Workforce and Operations - The workforce increased to 83 employees as of December 31, 2021, from 77 employees in 2020[94]. - The company’s proactive management capabilities were enhanced by recruiting relevant talent and collaborating with industry peers for project development[67]. Market Performance - The bond market showed strong performance, with 508 new bonds listed, an 18% increase from 2020, and total fundraising reaching HKD 1.55 trillion[65]. - The number of IPOs in Hong Kong decreased by 35% in 2021, with total fundraising down by 19%, marking the first time since 2012 that Hong Kong's IPO fundraising fell out of the global top three[62]. - The biotechnology and health sectors showed strong IPO performance, with 33 companies listed in Hong Kong in 2021, leading in the number of IPOs across all sectors[63].

Financial Performance - The group's unaudited consolidated revenue for the six months ended June 30, 2021, was approximately HKD 134,766,000, a decrease of about 14% compared to HKD 157,030,000 for the same period in 2020[84]. - Interest income decreased by 18% to HKD 114,725,000 from HKD 140,051,000 year-on-year, while commission and fee income increased by 31% to HKD 15,669,000 from HKD 11,968,000[86]. - The group recorded a profit of approximately HKD 255,765,000 for the six months ended June 30, 2021, significantly up from HKD 67,423,000 for the same period in 2020, mainly due to substantial investment income[86]. - Total revenue for the six months ended June 30, 2021, was HKD 734,766,000, a decrease from HKD 757,030,000 in the same period of 2020[141]. - Profit for the period was HKD 255,765,000, significantly up from HKD 67,423,000 in the previous year, representing a growth of approximately 279%[147]. - Basic earnings per share increased to HKD 0.78 from HKD 0.20, reflecting strong profitability growth[143]. - The net profit attributable to the owners of the company was HKD 257,268,000, compared to HKD 68,050,000 in the prior year[143]. Asset Management - As of June 30, 2021, the group's total assets were approximately HKD 5,832,385,000, down about 6% from HKD 6,187,043,000 as of December 31, 2020[89]. - The group had a cash and bank balance of approximately HKD 524,269,000 as of June 30, 2021, compared to HKD 626,976,000 as of December 31, 2020[91]. - Total assets decreased to HKD 5,832,385 from HKD 6,187,043, representing a decline of approximately 5.7%[150]. - Current assets increased to HKD 2,958,752 from HKD 2,792,052, reflecting a growth of about 6%[150]. - Non-current assets totaled HKD 2,873,633, down from HKD 3,394,991, a decrease of approximately 15%[150]. - Cash and cash equivalents decreased to HKD 508,552 from HKD 626,976, a decline of about 19%[150]. - Financial assets at fair value through profit or loss decreased to HKD 909,436 from HKD 1,145,741, a drop of approximately 21%[150]. Shareholder Information - As of June 30, 2021, the total issued ordinary shares of the company amounted to 34,714,459,250 shares[106]. - The major shareholder, Vered Holdings Group Ltd, holds 10,049,310,000 shares, representing 28.95% of the issued share capital[115]. - Liu Xueyi owns 5,034,511,390 shares, accounting for 14.50% of the issued share capital[115]. - Zhao Xinlong holds 3,500,000,000 shares, which is 10.08% of the issued share capital[115]. - CMI Financial Holding Corporation possesses 1,430,000,000 shares, representing 4.12% of the issued share capital[126]. - The total number of shares held by directors and senior management in the company is not disclosed beyond the major shareholders[107]. Risk Management and Strategic Initiatives - The company plans to strengthen its investment research team and enhance risk management and product development capabilities in its asset management business[35]. - The company plans to continue strict risk management measures to mitigate market volatility and seek potential investment opportunities to maximize shareholder value[81]. - The company is engaging with internationally renowned investment banking experts to enhance its capabilities in cross-border mergers and acquisitions and investment banking capital operations[35]. - The company is focusing on investment opportunities in cyclical industries such as consumer upgrades, the internet, and high-end manufacturing, while also following the listing progress of key invested projects[35]. - The company aims to leverage its position as an international financial center in Hong Kong to expand its business in leading Asian economies, focusing on both traditional financial services and innovative fintech[38]. Corporate Governance and Compliance - The company has adhered to most of the corporate governance code provisions during the review period[132]. - The independent auditor has reviewed the interim financial information in accordance with the relevant standards, ensuring compliance with regulatory requirements[135]. - The company has not reported any short positions in its shares as of June 30, 2021[107]. - The group did not recommend any interim dividend for the six months ended June 30, 2021, consistent with the same period in 2020[89]. Digital Transformation - The company is committed to digital transformation in its securities business to build a market-influential internet brokerage brand with a good user experience[35]. Economic Outlook - The company anticipates that the global economic recovery will continue to face challenges due to uneven vaccination progress and rising inflation pressures[37].