香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公佈的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 CASH FINANCIAL SERVICES GROUP LIMITED 時富金融服務集團有限公司* （於百慕達註冊成立之有限公司） （股份編號：510） 中期業績 截至二零二四年六月三十日止六個月 簡明綜合損益及其他全面收入表 CASH Financial Services Group Limited（時富金融服務集團有限公司）（「本公司」或「時富金融」）及其附屬公 司（「本集團」）截至二零二四年六月三十日止六個月之未經審核綜合業績，連同去年同期之比較數字如下： | --- | --- | --- | --- | |----------------|-------|----------------------------------------------|---------------------| | | 附註 | 截至六月三十日止六個月 二零二四年 \n千港元 | 二零二三年 \ ...

Financial Performance - The company's revenue for the year showed a moderate growth of 3.2% in local GDP, despite external uncertainties impacting investment and consumer confidence [13]. - The company recorded a revenue of approximately HKD 58,400,000 for the year ending December 31, 2023, a decrease of 20.8% compared to HKD 73,700,000 in the previous year [21]. - Brokerage income decreased by approximately 45.4% or HKD 11,700,000, attributed to a significant decline in the average daily trading volume of the Hong Kong securities market by 15.9% [22]. - Wealth management service revenue saw a substantial decline of approximately 66.8% or HKD 13,500,000, with current revenue at HKD 6,700,000 compared to HKD 20,200,000 in the previous year [22]. - Interest income increased by approximately 54.3% or HKD 10,500,000, reaching HKD 29,800,000, while financial costs rose by 57.0% or HKD 4,500,000 [23]. - The company reported a net loss attributable to shareholders of approximately HKD 95,200,000 for the year, compared to a net loss of approximately HKD 63,800,000 in the previous year [24]. - The group reported a net loss attributable to shareholders of HKD 95.2 million for the year, an increase of 49.2% compared to a net loss of HKD 63.8 million in the previous year [36]. - Total revenue for the group decreased by 20.8% to HKD 58.4 million in 2023 from HKD 73.7 million in 2022, with brokerage services declining by 45.3% and wealth management services declining by 66.8% [35]. Market Conditions - The average daily trading volume in Hong Kong reached a new low in 2023 due to adverse market conditions and rising compliance costs [14]. - In 2023, the Hong Kong stock market faced significant challenges, with the Hang Seng Index and the Hang Seng China Enterprises Index declining by 13.8% and 14.0%, respectively [40]. - Daily trading volume in 2023 dropped to HKD 105 billion, down from HKD 124.9 billion in 2022 and HKD 166.7 billion in 2021, indicating a challenging market environment [40]. - The International Monetary Fund forecasts a moderate global economic growth of 3.1% in 2024, lower than the historical average growth rate of 3.8% over the past two decades [17]. Strategic Initiatives - The company successfully transitioned from traditional brokerage to a diversified wealth management expert in the Greater Bay Area, establishing a solid foundation for business expansion [14]. - The company plans to establish more wealth management centers and strategic alliances in the Greater Bay Area and Yangtze River Delta regions [6]. - The company aims to combine traditional finance with new financial assets to develop a comprehensive wealth management business [7]. - The company is strategically shifting its focus from East Asia to the Greater Bay Area, aiming to enhance its wealth management services in this rapidly developing region [22]. - The company plans to continue strengthening strategic partnerships with local and international financial institutions and fintech companies to capitalize on the growing demand for financial services in the Greater Bay Area [17]. Technology and Innovation - The integration of artificial intelligence with asset management capabilities has led to the creation of an award-winning wealth management platform [14]. - The launch of the advanced mobile trading application Alpha i aims to enhance user experience and service quality for tech-savvy investors [7]. - The newly launched CASH ISR investment research platform enhances investment management capabilities and optimizes portfolio performance using big data and AI [43]. - The ISR platform won the Financial Technology Innovation Award in the Wealth Tech category from the Institute of Financial Technologists of Asia for its contributions to fintech [44]. - The company recognizes the potential of generative AI in advancing investment strategies and is developing AI solutions for its fintech operations [53]. Employee and Corporate Governance - The company reported a total employee salary cost of HKD 41,500,000 for the year [61]. - As of December 31, 2023, the company employed 97 staff members [61]. - The group has implemented various training policies aimed at enhancing employee skills and overall competitiveness, productivity, and efficiency [63]. - The board includes experienced executives with backgrounds in corporate management, strategy planning, financial consulting, and investment banking [65][69][70][71][72]. - The company emphasizes employee development, workplace health and safety, and sustainable practices as key elements of its corporate culture [90]. Environmental, Social, and Governance (ESG) Initiatives - The report covers the Group's environmental, social, and governance (ESG) initiatives and performance for the fiscal year ending December 31, 2023 [170]. - The Group aims to reduce its operational impact on the environment and contribute to community improvement, particularly for future generations [174]. - The Group's major ESG issues include anti-corruption, employee compensation, customer service, and climate change [181]. - The company received multiple environmental awards, including the Hong Kong Green Organization Certification and the Hong Kong Environmental Excellence Award, recognizing its commitment to environmental protection [183]. - The company has implemented various waste reduction initiatives, including a paperless workflow and recycling programs, to enhance sustainability efforts [194]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming for $187.5 million [74]. - New product launches are expected to contribute an additional $30 million in revenue, with a focus on innovative financial technology solutions [74]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years [74]. - Future goals include setting more specific quantitative environmental targets to enhance sustainability performance [196].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 58,365,000, a decrease of 20.6% compared to HKD 73,658,000 in 2022[2] - The company reported a net loss of HKD 94,631,000 for 2023, compared to a net loss of HKD 57,988,000 in 2022, representing a 63.2% increase in losses[2] - Basic and diluted loss per share for 2023 was HKD 27.00, compared to HKD 24.42 in 2022[3] - The group reported a pre-tax loss of HKD 92,137,000 for the year ended December 31, 2023, compared to a pre-tax loss of HKD 53,853,000 for the previous year[29] - The company reported a loss of HKD 95,247,000 for 2023, compared to a loss of HKD 63,775,000 in 2022, indicating a deterioration in financial performance[37] Revenue Breakdown - The financial services segment generated revenue of HKD 52,136,000, down from HKD 68,792,000 in the previous year, indicating a decrease of about 24.2%[29] - The investment management segment reported a profit of HKD 3,751,000, contrasting with a loss of HKD 63,125,000 in the prior year[29] - The group experienced a significant decrease in brokerage service revenue, which fell to HKD 14,065,000 from HKD 25,762,000, a decline of approximately 45%[26] - The group reported a significant decrease in total client contract revenue, which fell to HKD 28,599,000 from HKD 54,373,000, a decline of approximately 47.5%[26] - Wealth management service revenue fell by approximately 66.8% or HKD 13,500,000, from HKD 20,200,000 in 2022 to HKD 6,700,000 in 2023[52] Assets and Liabilities - Total assets decreased to HKD 807,226,000 in 2023 from HKD 1,105,961,000 in 2022, a decline of 26.9%[5] - Current liabilities decreased to HKD 593,435,000 in 2023 from HKD 826,905,000 in 2022, a reduction of 28.2%[5] - Non-current liabilities decreased to HKD 19,796,000 in 2023 from HKD 26,612,000 in 2022, a decline of 25.8%[6] - Net assets decreased to HKD 255,867,000 in 2023 from HKD 331,467,000 in 2022, a decrease of 22.7%[6] - Total liabilities as of December 31, 2023, were HKD 853,517,000, with segment liabilities of HKD 617,703,000 in financial services and HKD 34,441,000 in investment management[33] Cash Flow and Financial Position - Cash and cash equivalents increased to HKD 247,991,000 at year-end, up from HKD 209,314,000 at the beginning of the year, reflecting a net increase of HKD 38,909,000[24] - The group’s operating cash flow before changes in working capital was a negative HKD 82,435,000, compared to a negative HKD 53,853,000 in the previous year[24] - The company’s total assets and liabilities were adjusted to reflect the net asset values of the target company as of December 31, 2022[14] - The company’s interest income for the year was HKD 19.285 million, showing a slight increase from the previous period[15] Strategic Initiatives and Future Plans - The company aims to enhance its financial position and operational efficiency in the upcoming fiscal year[9] - The company has plans for market expansion and new product development, although specific figures were not disclosed in the call[22] - The company is actively assessing the integration of brokerage services into value-added services to transform into a wealth management expert, leveraging opportunities from the expanded Cross-Border Wealth Management Connect program[80] - The company launched its first cross-border algorithm fund in the current year, further enriching its product portfolio to capture emerging opportunities[80] - The company plans to establish a dedicated sales team to enhance fund promotion and distribution in alignment with sales targets for 2024[86] Acquisitions and Investments - The company completed the acquisition of 51% of the issued shares of the target company for HKD 61 million, with HKD 10 million paid in cash and HKD 51 million through the issuance of 120 million new shares[13] - The financial results for the target company were included as if the acquisition had been completed from the date of initial control[14] - The company completed the acquisition of 51% of the issued shares of a subsidiary for HKD 61,000,000, increasing its stake from approximately 60.49% to 72.93%[61] Operational Efficiency - The company has implemented cost rationalization and operational streamlining measures, resulting in a 34.2% reduction in salary and related benefits to HKD 41,500,000[53] - The company recorded an impairment charge of HKD 42,900,000, a 512.9% increase from HKD 7,000,000 in 2022, primarily due to declines in collateral market values[53] - The company is leveraging cutting-edge technologies, including generative AI, to advance product offerings and strengthen risk management processes[86] Market Environment - The average daily trading volume in 2023 dropped to HKD 105 billion, down from HKD 124.9 billion in 2022 and HKD 166.7 billion in 2021, reflecting a challenging market environment[67] - The Hang Seng Index and Hang Seng China Enterprises Index fell by 13.8% and 14.0%, respectively, in 2023, marking one of the worst years in recent history for the Hong Kong stock market[67] - Net inflows of funds increased by over 300% from Q4 2022 to the first half of 2023, driven by the launch of the Cross-Border Wealth Management Connect program[68] Recognition and Awards - The company received the "2022/2023 Financial Technology Innovation Award" in the Wealth Technology category from the IFTA, recognizing its contributions to fintech innovation[72] - The company has been recognized with the "Annual Excellence Family Office Award" and "Hall of Fame Award" by CORPHUB for its outstanding customer service[76]

Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 37,439,000, a decrease of 4.1% compared to HKD 39,044,000 in the same period of 2022[4] - Interest income increased significantly to HKD 14,682,000, up 81.5% from HKD 8,092,000 year-on-year[4] - The company reported a pre-tax loss of HKD 21,584,000, slightly higher than the loss of HKD 21,351,000 in the previous year[4] - Basic and diluted loss per share for the period was HKD 9.19, compared to HKD 10.74 in the same period last year, indicating an improvement[7] - The company reported a loss of HKD (28,041,000) for the period, with a total comprehensive loss of HKD (30,117,000)[12] - The group recorded a net loss of approximately HKD 21,600,000 for the period, compared to a net loss of approximately HKD 21,400,000 in 2022, reflecting a slight increase of 0.9%[81] Assets and Liabilities - Non-current assets decreased to HKD 87,376,000 from HKD 79,023,000 year-on-year, reflecting a 10.3% increase[9] - Current liabilities decreased to HKD 685,493,000 from HKD 861,284,000, a reduction of 20.4%[11] - Net current assets were HKD 241,867,000, down from HKD 279,057,000, indicating a decline of 13.3%[11] - Total assets less current liabilities decreased to HKD 329,243,000 from HKD 358,080,000, a decrease of 8.0%[11] - The company's equity totalled HKD 309,729,000, down from HKD 331,468,000, reflecting a decline of 6.6%[11] - Current assets amounted to HKD 1,140,341,000, with accounts receivable of HKD 334,749,000 and cash and cash equivalents of HKD 247,991,000[23] - The total accounts payable amounted to HKD 398,671,000 as of June 30, 2023, down from HKD 482,196,000 as of December 31, 2022[54] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2023, was HKD (44,193,000), compared to HKD 117,270,000 for the same period in 2022[14] - The net cash used in investing activities for the six months ended June 30, 2023, was HKD (74,941,000), while it was HKD 3,006,000 in 2022[14] - The net cash generated from financing activities for the six months ended June 30, 2023, was HKD 40,096,000, compared to a cash outflow of HKD (22,331,000) in 2022[14] - The total cash and cash equivalents at the end of June 30, 2023, decreased to HKD 168,953,000 from HKD 309,109,000 at the end of June 30, 2022[14] Revenue Breakdown - Total revenue for the financial services segment was HKD 37,439,000 for the six months ended June 30, 2023, down from HKD 39,043,000 in the same period of 2022, representing a decrease of approximately 4.1%[38] - Brokerage service revenue for the six months ended June 30, 2023, was HKD 14,389,000, compared to HKD 13,958,000 for the same period in 2022[32] - Wealth management service revenue decreased significantly from HKD 9,931,000 in 2022 to HKD 4,026,000 in 2023[32] - The brokerage service revenue was HKD 14,389,000 for the six months ended June 30, 2023, compared to HKD 13,958,000 in the previous year, showing an increase of approximately 3.1%[33] - Wealth management service revenue significantly decreased to HKD 4,026,000 from HKD 9,931,000, reflecting a decline of approximately 59.5%[33] Operational Efficiency - The company’s cash flow from operations was significantly negative, indicating challenges in operational efficiency[14] - The company incurred total operating expenses of HKD 27,096,000 for the six months ended June 30, 2023, compared to HKD 25,313,000 in the same period of 2022, an increase of approximately 7.0%[41] - The company’s total expenses for securities trading fees rose to HKD 6,632,000 in the first half of 2023, compared to HKD 2,012,000 in the same period of 2022, an increase of approximately 229.5%[41] Strategic Focus - The company is focusing on enhancing its financial services and exploring new market opportunities to drive future growth[3] - The company is reallocating significant resources to expand its wealth management and family office business in the Greater Bay Area[63] - The company has restructured its business focus towards wealth management and asset management, enhancing its service offerings to include insurance and unique trust services[89] - The company plans to continue investing in the Greater Bay Area, leveraging its core competencies in wealth management as a future growth direction[93] - The company is actively exploring virtual asset monetization solutions to integrate future trends in financial services[96] Corporate Governance - The company has complied with the corporate governance code, with all directors confirming adherence to the trading code during the review period[118] - The dual role of the chairman and CEO is intended to provide strong and consistent leadership for the board[120] - The board of directors includes both executive and independent non-executive members, indicating a diverse governance structure[122] - The company emphasizes its commitment to corporate governance and ethical practices[121] Employee Information - As of June 30, 2023, the group employed 103 staff members, with total employee wage costs amounting to HKD 26,900,000[99] - Employee benefits include a mandatory provident fund, medical insurance, discretionary share options, performance bonuses, and sales commissions[100] - The group has implemented various training programs aimed at enhancing employee skills and overall competitiveness, including product knowledge and compliance training[101] Shareholder Information - The beneficial ownership of shares by directors includes 2,472,000 shares personally held and 277,989,563 shares held through a controlled company, representing 73.58% of total shares[103] - Major shareholders include Hobart Assets Limited, Cash Guardian, and Praise Joy Limited, each holding 277,989,563 shares, which accounts for 72.93% of the total shares[115] Miscellaneous - The report was published on August 25, 2023, by the chairman and CEO, Kwan Pak Ho[121] - Future outlook and performance guidance were not detailed in the provided content[123] - No new products, technologies, market expansions, or acquisitions were mentioned in the available documents[123]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公佈的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚賴該等內容而引致 的任何損失承擔任何責任。 CASH FINANCIAL SERVICES GROUP LIMITED 時富金融服務集團有限公司* （於百慕達註冊成立之有限公司） （股份編號：510） 中期業績 截至二零二三年六月三十日止六個月 簡明綜合損益及其他全面收入表 CASH Financial Services Group Limited（時富金融服務集團有限公司）（「本公司」或「時富金融」）及其附屬公 司（「本集團」）截至二零二三年六月三十日止六個月之未經審核綜合業績，連同去年同期之比較數字如下： 未經審核 截至六月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （經重列） 收益 (3) 費用及佣金收入 22,757 30,952 利息收入 14,682 8,092 總收益 37,439 39,044 其他收入 7,818 1,937 其他收益 5,593 19,168 ...

Economic Performance - Hong Kong's economy recorded a negative growth of 3.5% in 2022, with total merchandise exports plummeting by 13.9%[12] - China's GDP growth was only 3.0% in 2022, but it is expected to rebound strongly in 2023, becoming a significant growth engine for the global economy[13] - In 2022, Hong Kong's economy contracted by 3.5% amid geopolitical tensions and strict pandemic measures in China[39] - Hong Kong's economy is expected to recover in the coming quarters following three years of pandemic control, although there are still downward risks due to global economic recession and geopolitical factors[49] Company Financials - The company reported a revenue of approximately HKD 68.8 million for the year ended December 31, 2022, a decrease of 29.0% from HKD 96.9 million in the previous year[21] - The net loss for the group increased by 30.5% to HKD 69.8 million in 2022 from HKD 53.5 million in 2021[33] - The total equity of the group decreased from HKD 412.4 million as of December 31, 2021, to HKD 338.9 million as of December 31, 2022, primarily due to the net impact of reported losses during the year[26] - The group’s total revenue for 2022 was HKD 68.8 million, a decrease of 29.0% compared to HKD 96.9 million in 2021[33] Revenue Breakdown - Brokerage income decreased by approximately 40.0% or HKD 17.2 million to about HKD 25.8 million, attributed to a 25.0% decline in the average daily trading volume in the Hong Kong securities market[21] - Wealth management service revenue increased by 24.7% or HKD 4.0 million to approximately HKD 20.2 million, reflecting a growing demand for wealth management products amid market volatility[21] - Non-brokerage and non-wealth management service revenue decreased by approximately 39.5% or HKD 14.9 million, primarily due to a significant drop in asset management income and IPO financing interest[22] Market Conditions - The total amount raised in the Hong Kong IPO market decreased by 68.4% to HKD 104.6 billion in 2022, compared to HKD 331.3 billion in 2021[22] - The average daily trading volume in Hong Kong's stock market fell to HKD 124.9 billion, a decrease of 25% from HKD 166.7 billion in 2021[39] - The Hang Seng Index experienced a significant drop of 15.5% in 2022, closing at 19,781 points, down from 23,397 points in 2021[40] Business Strategy - The company is focused on fintech development, investing heavily in innovative solutions to reshape the financial services industry[7] - The company aims to combine traditional finance with new financial assets to develop a comprehensive wealth management business, providing clients with more options[7] - The company is focused on a three-pronged business development strategy, including brokerage, wealth management, and asset management, which has begun to yield more balanced revenue contributions[21] Employee and Management - As of December 31, 2022, the company employed 81 staff members, with total employee compensation amounting to HKD 49.3 million[55] - The company is committed to providing various employee benefits, including a mandatory provident fund scheme and medical insurance plans[56] - The company has implemented training programs to enhance employee skills and overall competitiveness, covering areas such as product knowledge and compliance[57] Corporate Governance - The company has fully complied with the corporate governance code except for the separation of the roles of Chairman and CEO, which is not adhered to as both roles are held by the same individual[82] - The board consists of eight directors, with over one-third being independent non-executive directors, enhancing the scrutiny and control over management processes[86] - The company has established a mechanism to ensure the board receives independent opinions and reviews the effectiveness of this mechanism annually[90] Risk Management - The group has established risk management and internal control systems to identify, assess, and manage various significant risks, including strategic, operational, and compliance risks[136] - The internal audit function provides independent assessments of the adequacy and effectiveness of the group's risk management and internal control systems[139] - The audit committee has confirmed the effectiveness of the group's risk management and internal control systems, with no significant deficiencies reported as of December 31, 2022[147] Environmental, Social, and Governance (ESG) - The company has committed to sustainable development initiatives as outlined in its ESG report, demonstrating its dedication to environmental and social responsibilities[158] - The total greenhouse gas emissions for 2022 were 149.00 tons of CO2 equivalent, up from 130.68 tons in 2021[179] - The company has signed the Hong Kong General Chamber of Commerce's "Clean Air Charter" to reduce emissions and improve air quality[192] Future Outlook - The company anticipates a more optimistic outlook for 2023 as the pace of interest rate hikes slows, with confidence in the brokerage business in Hong Kong increasing[51] - The IPO market in Hong Kong is expected to regain growth momentum in 2023, driven by more Chinese companies listed in the US accelerating their "return" plans[51] - The company has set a future outlook with a revenue guidance of $180 million for the next fiscal year, indicating a projected growth of 20%[62]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公佈的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 CASH FINANCIAL SERVICES GROUP LIMITED 時 富 金 融 服 務 集 團 有 限 公 司* （於百慕達註冊成立之有限公司） （股份編號：510） 公佈 截至二零二二年十二月三十一日止年度 之 年終業績 綜合損益及其他全面收益表 CASH Financial Services Group Limited（時富金融服務集團有限公司）（「本公司」或「時富金融」）及其附屬公 司（「本集團」）截至二零二二年十二月三十一日止年度之經審核綜合業績，連同去年同期之比較數字如下： 二零二二年 二零二一年 附註 千港元 千港元 收益 (3) 費用及佣金收入 49,926 71,165 利息收入 18,866 25,698 總收益 68,792 96,863 其他收入 4,456 1,840 ...

Financial Performance - Total revenue for the six months ended June 30, 2022, was HKD 35,706,000, a decrease of 36% compared to HKD 55,772,000 in the same period of 2021[5] - Interest income decreased to HKD 8,092,000, down 46% from HKD 15,019,000 year-on-year[5] - The company reported a loss before tax of HKD 35,004,000, compared to a loss of HKD 19,029,000 in the previous year, representing an increase in loss of 84%[5] - Basic and diluted loss per share was HKD 13.40, compared to HKD 7.69 in the same period last year[8] - The company reported a total loss before tax of HKD 35,004,000 for the six months ended June 30, 2022, compared to a loss of HKD 19,029,000 in the same period of 2021[44] - The company reported a net loss of approximately HKD 35 million for the six months ended June 30, 2022, compared to a net loss of approximately HKD 19 million in the same period last year[83] - The net loss for the period was HKD 35.0 million, representing an increase of 84.2% from a net loss of HKD 19.0 million in the previous year[97] Assets and Liabilities - Non-current assets decreased to HKD 71,683,000 from HKD 76,181,000 as of December 31, 2021[11] - Current assets decreased to HKD 1,163,689,000 from HKD 1,219,396,000 at the end of 2021[11] - Total liabilities increased to HKD 850,636,000 from HKD 814,301,000 year-on-year[14] - Net current assets decreased to HKD 313,053,000 from HKD 405,095,000 as of December 31, 2021[14] - The company’s total equity decreased to HKD 378,048,000 from HKD 412,368,000 year-on-year[14] - Total assets decreased by 39.4% to HKD 1,235.4 million from HKD 2,038.4 million year-on-year[97] Cash Flow - The net cash inflow from operating activities for the six months ended June 30, 2022, was HKD 79,134,000, compared to a net outflow of HKD 719,773,000 in the same period of 2021[20] - The total net cash increase for the period was HKD 98,674,000, up from HKD 33,959,000 in the previous year[20] - The cash and cash equivalents at the end of the period increased to HKD 302,254,000 from HKD 242,818,000 at the end of the previous year[20] - The company's cash and bank balances increased slightly to HKD 909.4 million as of June 30, 2022, from HKD 864.6 million as of December 31, 2021[84] Revenue Segments - Revenue from financial services for the six months ended June 30, 2022, was HKD 35,705,000, with a segment loss of HKD 30,414,000[36] - Brokerage income decreased by approximately 45.7% or HKD 11.8 million, reflecting a significant decline in the average daily trading volume in the Hong Kong securities market, which fell by 26.5%[80] - Wealth management service revenue increased by 33.8% or HKD 2.5 million to approximately HKD 9.9 million, driven by increased demand for wealth management products and services[80] - Non-brokerage and non-wealth management service revenue decreased by approximately 51.3% or HKD 3.9 million, primarily due to a 75.8% decline in asset management revenue[81] Operational Efficiency and Strategy - The company plans to focus on enhancing operational efficiency and exploring new market opportunities in the upcoming periods[5] - The company continues to implement cost rationalization measures, resulting in a 20.7% reduction in other operating expenses[83] - The company has tightened its credit policy in response to the global economic downturn and rising interest rates[102] - The company is focused on maintaining a strong financial position to navigate the current global economic challenges[105] Employee and Corporate Governance - Employee compensation totaled HKD 25.7 million as of June 30, 2022, with 135 employees hired by the company[109] - The company has adhered to the corporate governance code but deviated from the guideline that the roles of Chairman and CEO should be separated, with Dr. Kwan holding both positions[131] Stock Options and Shareholder Information - The company granted stock options under its stock option plan, with a total of 49,667,477 shares available for issuance, representing approximately 19.02% of the issued shares[126] - The stock options vest in multiple tranches, with 25% vesting from May 1, 2019, to April 30, 2020, and 50% vesting from May 1, 2021, to April 30, 2022[120] - Major shareholders include Hobart Assets Limited, Cash Guardian Limited, and others, each holding 102,928,854 shares, representing 39.41% ownership[128] Future Outlook - The company anticipates a challenging market outlook due to rising import inflation and interest rates, which may dampen investor sentiment and trading volumes[106] - The introduction of new listing regulations for technology companies and opportunities in cross-border capital markets is expected to lead to a resurgence in market sentiment with large IPOs[105] - The company has no significant future investment or asset acquisition plans[95]

Financial Performance - The company reported a comprehensive income of HKD 150 million for the year 2021, representing a 10% increase compared to the previous year[4]. - Revenue from corporate financing services increased by 30%, contributing significantly to the overall financial performance[4]. - The company recorded revenue of HKD 96.9 million for the year ending December 31, 2021, a decrease of 6.6% compared to HKD 103.7 million in 2020[20]. - The group's total revenue for 2021 was HKD 96.9 million, a decrease of 6.5% from HKD 103.7 million in 2020[28]. - The company experienced a net loss of HKD 53.5 million for the year, compared to a net loss of HKD 39.1 million in the previous year[22]. - The net loss for 2021 was HKD 53.5 million, representing a 36.8% increase compared to a net loss of HKD 39.1 million in 2020[29]. - The company's asset management business saw a growth of 62.2% despite the decline in the Hong Kong stock market[21]. - Wealth management business grew by 116.0% due to a strategic shift towards diversified investment and wealth management expertise[21]. User Growth and Client Engagement - User data showed a 25% growth in active clients, reaching a total of 50,000 clients by the end of 2021[6]. - The average annual brokerage fee income per active client decreased by 7.3% to HKD 3.8 thousand in 2021 from HKD 4.1 thousand in 2020[29]. - The company aims to expand its client base through IPO subscription and margin financing, capitalizing on the ongoing demand for IPO brokerage services[40]. Strategic Initiatives and Future Plans - The company plans to expand its wealth management centers in the Greater Bay Area and Yangtze River Delta, aiming to establish at least 5 new centers by 2023[8]. - The company is exploring strategic alliances and potential acquisitions to enhance its service offerings in the region[8]. - The company plans to hire over 200 frontline wealth management professionals in the Greater Bay Area by the end of 2022 to enhance service quality[35]. - The company expects to launch its first public fund and private fund in the second half of 2022, which is projected to increase managed assets and contribute positively to the group in 2023[41]. - The company plans to open a new wealth management center in the New Territories in the second half of 2022 to cater to the Greater Bay Area clients[40]. Technology and Innovation - A new version of the Alpha i trading app was launched in 2021, enhancing user experience with advanced data analytics and AI technology[9]. - The company upgraded its online trading platform and launched a new trading app "Alpha i 2.0" to cater to tech-savvy millennials[17]. - The company aims to enhance its online trading platform and mobile trading app functionalities to improve user experience and attract more investors[40]. - The upgraded trading application "Alpha i 2.0" was launched in December 2021, providing seamless real-time market data for US stocks and dark pool markets[36]. Market Conditions and Economic Outlook - The Hong Kong stock market saw a decline, with the Hang Seng Index closing at 23,398 points, down 14.08% from the previous year[21]. - The unemployment rate in Hong Kong decreased from a peak of 7.2% in December 2020 to 3.9% in October-December 2021, with expectations for further decline as economic activity continues to recover[31]. - The company anticipates a gradual recovery of the economy in mainland China and Hong Kong, supported by further monetary and fiscal measures from policymakers[38]. Risk Management and Governance - The company has established a nomination committee to enhance corporate governance, ensuring compliance with the corporate governance code[71]. - The board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring a balanced distribution of power and authority[73]. - The company has a strong focus on risk management and operational efficiency in asset management, with over 20 years of experience in the securities industry[67]. - The company has established a comprehensive anti-money laundering (AML) policy and procedures to ensure compliance with regulatory requirements[125]. - The board has confirmed that the risk management and internal control systems are established and operating effectively as of December 31, 2021[130]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report outlines the group's initiatives and performance in sustainability, covering activities up to December 31, 2021[146]. - The total greenhouse gas emissions for the reporting period were 130.68 tons of CO2 equivalent, a decrease from 179.11 tons in the previous year, representing a reduction of approximately 27.0%[160]. - The company received multiple awards for its environmental efforts, including the "Hong Kong Environmental Excellence Award" and "Waste Reduction Certificate" at the excellence level[156]. - The company has established a committee to oversee environmental, social, and governance matters, ensuring compliance with relevant laws and regulations[149]. Employee Engagement and Development - The total employee compensation for the year was HKD 58.5 million, with 130 employees as of December 31, 2021[44]. - The employee turnover rate for 2021 is approximately 54.48%, significantly higher than the 37.11% turnover rate in 2020, primarily due to operational restructuring[186]. - The group achieved a total of 1,510 training hours during the reporting period[196]. - The company has implemented various training policies and courses to enhance employee skills and overall competitiveness[195]. - The company emphasizes a family-friendly work environment and has established various employee support programs[190].

Financial Performance - Total revenue for the six months ended June 30, 2021, was HKD 55,772,000, an increase of 10.5% compared to HKD 50,502,000 in the same period of 2020[7] - Interest income rose to HKD 15,019,000, up 26.4% from HKD 11,844,000 year-on-year[7] - The company reported a loss before tax of HKD 19,029,000, a significant improvement from a loss of HKD 28,124,000 in the previous year[7] - Basic and diluted loss per share improved to HKD 7.69 from HKD 11.35 in the prior year[10] - The total comprehensive income for the six months ended June 30, 2021, was HKD 444,787,000, compared to HKD 475,674,000 for the same period in 2020, reflecting a decrease of approximately 6.5%[22] - The net loss for the six months ended June 30, 2021, was HKD 19,000,000, an improvement from a net loss of HKD 28,100,000 in the previous year[87] - The group recorded a net loss of HKD 19.0 million for the six months ended June 30, 2021, an improvement of 32.4% compared to a net loss of HKD 28.1 million in the same period of 2020[102] Assets and Liabilities - Non-current assets decreased to HKD 77,553,000 from HKD 85,578,000 as of December 31, 2020[13] - Current assets increased significantly to HKD 1,960,892,000 from HKD 1,382,890,000 at the end of 2020, driven by a rise in accounts receivable[13] - Total liabilities increased to HKD 1,587,384,000 from HKD 1,004,135,000, primarily due to a rise in bank borrowings[16] - The company’s net assets decreased to HKD 444,787,000 from HKD 453,880,000[16] - The total assets as of June 30, 2021, amounted to HKD 1,000,000,000, compared to HKD 950,000,000 as of June 30, 2020, showing an increase of approximately 5.3%[22] - The company’s total liabilities as of June 30, 2021, were HKD 555,000,000, compared to HKD 500,000,000 as of June 30, 2020, reflecting an increase of approximately 11%[22] - The group’s cash and bank balances decreased from HKD 966.2 million to HKD 891.1 million, attributed to a reduction in client trading volume[88] - The current ratio decreased from 1.38 times to 1.24 times, while the debt-to-equity ratio increased from 24.4% to 193.4% due to increased bank borrowings[89] Revenue Streams - The wealth management services revenue increased to HKD 7,370,000 in the first half of 2021, up from HKD 3,150,000 in the same period of 2020, representing a growth of approximately 134.5%[36] - Brokerage commission income decreased by 11.3% due to reduced trading activity among retail clients amid market volatility[85] - Brokerage income decreased by 11.3% to HKD 25.8 million, while wealth management income increased by 131.3% to HKD 7.4 million[101] Operational Highlights - The company plans to focus on market expansion and new product development in the upcoming quarters[5] - The company continues to control operating costs through staff streamlining and organizational structure reviews[85] - The company incurred operational expenses of HKD 19,102,000, a decrease from HKD 21,367,000 in the previous year[48] - The company’s advertising and promotional expenses rose to HKD 1,470,000 from HKD 1,213,000 in the previous year[48] Shareholder Information - As of June 30, 2021, the company had a total of 97,960,854 shares outstanding, with the largest shareholder holding 38.45% of the shares[122] - The company granted stock options under its stock option plan, with a total of 18,552,000 options exercised at an exercise price of HKD 0.48[133] - The total number of stock options outstanding as of June 30, 2021, was 13,602,000[133] - The company reported a total of 97,960,854 shares held by major shareholders, representing 37.50% of the total shareholding[139] Corporate Governance - The company has complied with the corporate governance code as per the listing rules, except for the establishment of a nomination committee[142] - All directors confirmed compliance with the trading code during the review period[143] - The chairman and CEO of the company, Dr. Kwan, holds dual roles, which is deemed important for effective leadership and decision-making[142] Market Outlook - The group anticipates a strong IPO activity throughout the year, particularly in the new economy sector, due to the recovery from the pandemic[107] - The group is optimistic about the economic recovery in Hong Kong and expects local activities and cross-border flows to normalize in the short term[111]