Financial Performance - Total revenue for the six months ended June 30, 2024, was HKD 26,637,000, a decrease of 19% compared to HKD 32,899,000 for the same period in 2023[2] - Brokerage commission and settlement fee income decreased to HKD 445,000 from HKD 685,000, representing a decline of 35%[1] - Asset management fee income fell to HKD 1,086,000, down 50% from HKD 2,170,000[1] - Interest income from margin clients decreased to HKD 17,173,000, a decline of 28% from HKD 23,845,000[1] - The company reported an operating loss of HKD 11,096,000 compared to an operating profit of HKD 6,187,000 in the previous year[2] - The net loss for the period was HKD 11,276,000, compared to a profit of HKD 4,941,000 in the same period last year[2] - Total comprehensive expenses for the period amounted to HKD 123,024,000, significantly higher than HKD 32,948,000 in the previous year[3] - The adjusted pre-tax loss for the group was HKD 11,276,000, reflecting a significant increase in total expenses, including employee costs of HKD 8,618,000[18] - The group reported a pre-tax profit of HKD 5,941,000 for the six months ended June 30, 2023, indicating a year-on-year performance improvement[21] - The group’s other income for the six months ended June 30, 2024, was HKD 910,000, a decrease from HKD 2,666,000 in the same period of 2023[24] - The company reported a basic loss per share of HKD 11,459,000 for the six months ended June 30, 2024, compared to a profit of HKD 4,064,000 for the same period in 2023[31] - The company reported a net loss attributable to shareholders of approximately HKD 11,500,000, compared to a net profit of approximately HKD 4,000,000 in the previous period, primarily due to a 30% and 46% decrease in revenue from the securities brokerage and asset management segments, respectively[67] Assets and Liabilities - The company's total assets decreased to HKD 712,509,000 from HKD 833,527,000, reflecting a reduction in net current assets[5] - Non-current liabilities increased, with lease liabilities rising to HKD 2,545,000 from HKD 539,000[5] - The company's equity attributable to owners decreased to HKD 583,025,000 from HKD 700,093,000[5] - The total assets of the group as of June 30, 2024, amounted to HKD 743,959,000, with segment assets distributed as follows: HKD 298,367,000 for securities brokerage, HKD 83,664,000 for asset management, HKD 304,613,000 for financing, and HKD 10,753,000 for entertainment[20] - The total liabilities of the group as of June 30, 2024, were HKD 33,995,000, with segment liabilities including HKD 27,318,000 for securities brokerage and HKD 1,215,000 for financing[20] - As of June 30, 2024, the total value of receivables was HKD 92,040,000, with expected credit loss provisions amounting to HKD 8,488,000[52] - The total margin loans receivable as of June 30, 2024, was HKD 281,354,000 (down from HKD 297,075,000 as of December 31, 2023), with a provision for impairment of HKD 19,161,000[44] - The expected credit loss rate for margin clients increased to 6.81% as of June 30, 2024, compared to 3.33% as of December 31, 2023[46] Investments - The company's investment in listed equity securities in Hong Kong was valued at HKD 136,672,000 as of June 30, 2024, a slight decrease from HKD 137,670,000 at the end of 2023[33] - The total value of non-listed equity investments was HKD 174,198,000 as of June 30, 2024, down from HKD 254,052,000 at the end of 2023[33] - The investment in Hope Capital Limited represented 16.78% of the company's total assets as of June 30, 2024, with a fair value of HKD 124,844,000[38] - The fair value of the investment in Hope Capital Limited was approximately HKD 124,800,000, representing about 16.78% of the group's total assets[65] Revenue Streams - The total segment revenue for securities brokerage and asset management was approximately HKD 18,700,000 and HKD 6,600,000, respectively, compared to HKD 26,700,000 and HKD 19,600,000 in the previous period[62] - Revenue from the lending business dropped by approximately 46% to about HKD 3,100,000 from HKD 5,800,000 in the previous period, with an impairment loss of approximately HKD 3,900,000 recognized[64] - The entertainment business generated revenue of approximately HKD 400,000 from film distribution rights during the review period[66] Operational Insights - The company continues to engage in comprehensive financial services, including securities brokerage and related financial advisory services[60] - The company maintains a cautious approach towards new business ventures and expansion plans due to the current unstable market conditions[62] - The company plans to enhance its integrated financial services business, focusing on expanding its underwriting and corporate finance advisory services while cautiously approaching market expansion due to challenging financial conditions[76][77] Cash Flow and Financing - As of June 30, 2024, the company's cash balance was approximately HKD 18,000,000, down from HKD 31,000,000 as of December 31, 2023, with a current ratio of approximately 13 times[68] - The company has not engaged in any capital raising activities during the review period[69] - As of June 30, 2024, the company had no bank borrowings, resulting in a debt-to-equity ratio of zero[68] - New loan financing issued by the company ranged from HKD 12,000,000 to HKD 20,000,000 in the six months ending June 30, 2024, with an interest rate of 7%[48] Accounting and Compliance - The company has not applied any new accounting standards or interpretations that have not yet come into effect during the reporting period[10] - The company expects to reflect changes in accounting policies in the annual financial statements for the year ending December 31, 2024[8] - The company has implemented revisions to accounting standards regarding the classification of liabilities and supplier financing arrangements, which will enhance financial statement disclosures[11] - The company has not recognized any tax provisions for the Hong Kong profits tax for the six months ended June 30, 2024, due to immaterial amounts[29] - The Dutch subsidiary is subject to a corporate tax rate of 19% on the first EUR 200,000 of taxable profits and 25.8% on the remaining profits, but no taxable profits were estimated for the period[29] Shareholder Information - No dividends were declared or proposed for the six months ended June 30, 2024, consistent with the previous year[30] - The company did not recommend any interim dividend for the review period, consistent with the previous period[75] - The total issued shares as of June 30, 2024, were 829,921,572, with a market capitalization of approximately HKD 324,000,000, significantly down from HKD 1,220,000,000 as of December 31, 2023[69]

Business Overview - The Group's principal business remains in Integrated Financial Services, investment holdings, CGI business, and entertainment business, with new activities in film distribution license rights and artiste management services introduced during the Year under Review [27]. - The Group's integrated financial services remain the core business, focusing on securities brokerage, margin financing, and asset management [112]. - The Group's entertainment business will seek additional opportunities in film investment and distribution, particularly in local films [82]. - The Group is developing film distribution license rights in Hong Kong/Macau and North America, and is investing in film production and variety shows [169][170]. Financial Performance - For the year ended December 31, 2023, the Group recorded a revenue of approximately HK$49 million, representing a decrease of 17% compared to the financial year of 2022 [74]. - The net loss attributable to the shareholders for the year under review was approximately HK$13 million [74]. - Revenue from interest income on loans receivable decreased from approximately HK$16 million to approximately HK$10 million, while total revenue from the securities brokerage and asset management segment dropped from approximately HK$49 million to approximately HK$42 million [196]. - The Group recorded a net realised loss of approximately HK$3.7 million from sales of listed equity investments and unrealised losses of approximately HK$20.9 million from changes in fair value of listed equity investments classified as held-for-trading for the Year under Review [133]. Dividend Policy - The Directors do not recommend the payment of a dividend for the Year under Review, consistent with the previous year where no dividend was declared [29]. - The Company is committed to balancing sufficient capital maintenance for business operations while rewarding shareholders, as outlined in its Dividend Policy [10]. - The Board will consider liquidity position, return on equity, and relevant financial covenants when determining dividend payments [13]. Risk Management and Internal Controls - The Company confirmed that its risk management and internal control systems are adequate and effective, as acknowledged by the Board following an annual review [4]. - The Company has engaged in ongoing reviews of key financial, operational, and compliance controls, with findings presented to the Audit Committee for endorsement [3]. - The Group has established internal control policies to monitor credit risk in its money lending business [122]. Market Conditions and Future Outlook - The Company anticipates that the overall business environment in Hong Kong and China will gradually improve in 2024 [65]. - The Company expects that the high interest rate regime has peaked and will begin to reverse in the second half of 2024 [65]. - The challenging economic environment was influenced by a plummeting property market in China and high inflation rates globally [74]. - The Group anticipates that the performance of its securities brokerage and related services will continue to improve in 2024, contributing significantly to operations and profits [79]. - The Company expects gradual improvement in the business environment in Hong Kong and China in 2024, driven by easing regulatory measures and stabilizing property markets [103]. Loan and Lending Business - The Group generated total new loan principal of HK$170.2 million and interest income of approximately HK$10 million during the Year under Review [107]. - Outstanding margin loans receivable from the securities brokerage business amounted to approximately HK$297 million as of December 31, 2023, with approximately HK$10 million impairment allowances provided [143]. - The management remains confident that the lending business will continue to provide stable and substantial returns in the future [67]. - The management is confident that the money lending business will continue to provide steady and attractive returns in the future [107]. - The total loan principal drawdown during the Year under Review was HK$170.2 million, with new loan facilities ranging from HK$0.1 million to HK$13 million [160][161]. Impairment and Provisions - Impairment allowances on margin loans receivable and loans receivable increased due to the deteriorating market environment [74]. - The increase in impairment provisions for margin loans and receivables in 2023 was attributed to a weak market environment and expectations [101]. - Impairment allowances of approximately HK$4.6 million were provided on the outstanding loans receivable as of December 31, 2023 [160][161]. Corporate Governance - The Company is committed to enhancing corporate governance and promoting an ethical corporate culture [64]. - The management will take appropriate actions on overdue loans on a case-by-case basis, ensuring effective loan monitoring and repayment collection [128]. Employee Costs - Employee costs for the year amounted to approximately HK$17 million, an increase from approximately HK$15 million in 2022 [187].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 49,033,000, a decrease of 16.5% compared to HKD 58,874,000 in 2022[2] - The company reported a net loss of HKD 15,337,000 for the year, compared to a net loss of HKD 14,579,000 in the previous year, indicating a slight increase in losses[14] - The company reported a net loss attributable to owners of HKD 12,845,000 for the year, compared to a loss of HKD 10,972,000 in the previous year, indicating an increase in losses of approximately 16.1%[33] - The company reported a basic and diluted loss per share of HKD 0.11, compared to HKD 0.10 in the previous year[14] - The group reported a basic loss per share of HKD (12,845,000) for the year ended December 31, 2023, compared to HKD (10,972,000) in 2022[124] Revenue and Income Sources - Interest income from margin clients increased to HKD 36,809,000, up from HKD 26,209,000, representing a growth of 40.5%[6] - Revenue from brokerage-related commission and settlement fees was HKD 1,942,000, down from HKD 2,431,000, a decrease of approximately 20.2%[63] - The total segment revenue was HKD 49,033,000, down from HKD 58,874,000, indicating a decrease of approximately 16.5% year-over-year[64] - Interest income from financial assets measured at amortized cost totaled HKD 47,485,000 for the year ended December 31, 2023, up from HKD 42,029,000 in 2022, representing an increase of about 10.4%[92] - The company’s securities brokerage business is expected to continue being a core and profitable segment, contributing significantly through various income streams[181] Expenses and Costs - The cost of revenue totaled HKD 697,000, down from HKD 1,607,000 in 2022, reflecting a significant reduction in costs[2] - Administrative expenses rose to HKD 39,022,000, compared to HKD 35,510,000 in 2022, indicating a 4.2% increase[2] - The total employee costs for the year amounted to HKD 17,061,000, an increase from HKD 15,239,000 in 2022[121] - The group’s income tax expense for the year was HKD 2,492,000, compared to HKD 3,726,000 in 2022[122] Assets and Liabilities - The total assets decreased to HKD 833,527,000 from HKD 939,153,000, reflecting a decline of 11.3%[15] - The company's equity decreased to HKD 832,988,000 from HKD 937,455,000, a reduction of 11.1%[18] - The net current assets were reported at HKD 422,349,000, down from HKD 755,150,000, representing a significant decrease of approximately 44.1%[35] - The total liabilities of the company amounted to HKD 36,266,000 as of December 31, 2023[83] - The group’s total assets as of December 31, 2023, included investments in Hope Capital Limited, with a fair value of HKD 195,614,000, representing approximately 22.5% of the group's total assets[1] Investments and Equity Interests - The company plans to continue focusing on its entertainment segment, which includes film rights investment and artist management services[29] - The company’s equity interest in Entity B decreased from 4.70% as of December 31, 2022, to 4.22% as of December 31, 2023, due to the issuance of new shares by Entity B[106] - The group’s equity interest in Hope Capital decreased from 17.39% as of December 31, 2022, to 16.79% as of December 31, 2023, due to the issuance of new shares[129] - The group further invested HKD 23,904,000 in Entity C, maintaining an 8% equity interest as of December 31, 2023[131] - The group acquired 10,000,000 shares of Entity D for HKD 25,000,000, resulting in an 8.53% equity interest as of December 31, 2023[132] Credit and Loan Management - The expected credit loss rate for margin loans is 0.14%, with margin loans amounting to HKD 297,075,000 as of December 31, 2023, down from HKD 476,887,000 in 2022[113] - The group incurred a realized loss of HKD 3,685,000 from the sale of listed equity investments during the year, compared to HKD 7,887,000 in 2022[121] - The expected credit loss provisions for stage 1 and stage 2 loans were HKD 151,894 million and HKD 22,731 million respectively as of January 1, 2023[146] - The overdue loans situation indicates a shift in the company's credit risk management, with a notable increase in loans overdue for more than one month[166] - The group maintained strict monitoring of outstanding receivables to minimize credit risk[161] Future Outlook and Strategic Plans - The management anticipates that the overall business environment in Hong Kong and China will gradually improve in 2024, driven by easing credit policies and stabilization in the real estate market[197] - The board believes that acquisitions or strategic alliances with local brokerage firms will enhance the client base and service offerings[182] - The company is exploring opportunities for collaboration with other brokerage firms to enhance service quality and client base[182] - The management believes that the computer imaging business will not be profitable in the short term and will allocate minimal resources to maintain it until significant improvements are observed[200] Miscellaneous - The company did not declare or propose any dividends for the year ended December 31, 2023, consistent with the previous year where no dividends were declared[69] - The company has not adopted any new accounting standards that would have a significant impact on its financial statements for the current year[45] - The company has not engaged in any equity fundraising activities during the review year[193] - The company has suspended production activities in the computer imaging business, focusing only on distribution until there is a substantial improvement in the business outlook[189][200]

智通财经APP讯，元汇集团(00585)发布公告，集团预期将于截至2023年12月31日止财政年度取得除税前亏损介于约1300万港元至2000万港元，而2022年同期财政年度取得除税前亏损约1100万港元。 集团2023财政年度的除税前亏损预期增加主要由于下列因素：由于2023财政年度放债业务放缓，应收贷款的利息收入减少;及分类为持作买卖财务资产的公平值变动的未变现亏损增加。 ...

Business Overview - The Group's principal business includes integrated financial services, investment holdings, CGI, and entertainment, with a new focus on film distribution license rights during the review period[10]. - The strategic goal is to enhance the variety and quality of integrated financial services, including forming strategic alliances and investing in local financial service firms[18]. - The Group aims to expand its coverage in the financial services industry through long-term strategic investments in equity instruments[18]. - The Group's integrated financial services encompass securities brokerage, margin financing, asset management, and corporate finance advisory services[10]. - The Company operates its money lending business through Imagi Lenders Limited, which holds a money lenders license under Hong Kong law[16]. - The Group's entertainment segment has started reporting revenues from film distribution, indicating a diversification of its business model[10]. - The Company is actively seeking opportunities to improve competitiveness in the integrated financial services sector[18]. - The Company plans to expand its Integrated Financial Services businesses, including securities brokerage, futures trading, and asset management services[51]. - The company has initiated a film distribution license rights business and aims to broaden its entertainment business in the film industry[54]. - The Company intends to enter the mass market to diversify its business portfolio while adopting a cautious approach due to challenging market conditions[80]. Financial Performance - The Group's financial performance and specific revenue figures for the review period will be detailed in the condensed consolidated financial statements[20]. - The Group's net profit attributable to shareholders for the period was approximately HK$4.1 million, a decrease from approximately HK$16.6 million in the previous period[44]. - Total segment revenue for securities brokerage and asset management was approximately HK$26.7 million, down from approximately HK$37.5 million in the previous period, representing a decrease of about 29%[44]. - Revenue from the securities brokerage and asset management segment decreased by approximately 29%, while the provision of finance segment saw a decline of approximately 34%[69]. - The consolidated net profit attributable to shareholders for the Period under Review was approximately HK$4.1 million, a decrease of approximately 75% compared to HK$16.6 million for the Previous Period[69]. - Interest income for the six months ended June 30, 2023, was HK$32,115,000, compared to HK$23,270,000 for the same period in 2022, representing an increase of 38.0%[171]. - The total revenue for the six months ended June 30, 2023, was HK$39,658,000, compared to HK$32,899,000 for the same period in 2022, indicating a year-over-year increase[199]. Liquidity and Financial Position - The Group maintained a strong liquidity position with bank balances of approximately HK$116 million as of June 30, 2023, compared to approximately HK$76 million at the end of 2022[45]. - The current ratio was approximately 18 times as of June 30, 2023, down from approximately 26 times at the end of 2022[45]. - The Group's net asset value per share was approximately HK$0.89 as of June 30, 2023, compared to approximately HK$0.92 at the end of 2022[46]. - The liquidity position remains healthy, with bank balances amounting to approximately HK$116 million, up from approximately HK$76 million as of 31 December 2022[70]. - The current ratio as of 30 June 2023 was approximately 18 times, compared to approximately 26 times as of 31 December 2022[70]. - The consolidated total assets amounted to HK$969,112,000, with bank balances and cash at HK$76,262,000[182]. - The consolidated total liabilities as of June 30, 2023, were HK$31,657,000, indicating a manageable debt level relative to assets[182]. Market Conditions and Strategic Approach - The Group is taking a cautious approach towards commencing new businesses and expansion plans due to current unstable market conditions[31]. - The Company intends to adopt a conservative approach towards business expansion due to the challenging financial market conditions, while remaining optimistic about the long-term prospects of the Hong Kong financial market[53]. - The Management does not foresee positive changes in the CGI business and will allocate minimal resources to maintain it until substantial changes occur[81]. - The Company has suspended its investment in the film industry but will continue to review investment opportunities as they arise[81]. Employee and Corporate Governance - As of June 30, 2023, the Group employed 33 employees, an increase from 31 employees in 2022, excluding Directors[102]. - The total staff cost for Directors and staff during the Period under Review was approximately HK$8.5 million, up from approximately HK$7.1 million in 2022, representing a year-on-year increase of about 19.7%[102]. - The Company has complied with the Corporate Governance Code during the Period under Review, maintaining high standards of corporate governance[104]. Shareholder Information and Share Schemes - The Company did not declare any interim dividend for the review period[93]. - The existing bye-laws of the Company were amended to comply with the Core Shareholder Protection Standards effective from January 1, 2022[89]. - As of June 30, 2023, the total number of issued shares was 829,921,572, with a market value of approximately HK$253 million, down from HK$270 million as of December 31, 2022[76]. - The Company has not sought shareholders' approval to refresh the Annual Limit under the Share Award Scheme, which expired on June 28, 2023, thus no further awards can be granted until approval is obtained[152]. - The Share Award Scheme is valid for ten years from October 22, 2019, to October 21, 2029, aimed at retaining and attracting suitable personnel[126]. - The Company has implemented a 3% annual limit for the Share Award Scheme, which equals 24,897,647 shares based on the approved limit from the annual general meeting held on June 21, 2022[148]. Investment and Asset Management - The investment in Hope Capital Limited amounted to approximately HK$96.7 million, representing about 10.18% of the Group's total assets as of June 30, 2023[76]. - As of June 30, 2023, investments in equity instruments designated at fair value and held-for-trading investments were approximately HK$25.7 million and HK$22.6 million, respectively[76]. - The unrealised losses from changes in fair value of listed equity investments classified as held-for-trading increased from approximately HK$2 million in the Previous Period to approximately HK$7 million for the Period under Review[69]. - The impairment loss on film rights investment was HK$59,000 for the six months ended June 30, 2023, which is a new expense not recorded in the previous year[171]. - Impairment allowances on margin loans receivable amounted to HK$4,139,000, highlighting potential risks in receivables[186]. Other Financial Metrics - The depreciation charge for owned property, plant, and equipment was HK$395,000 for the six months ended June 30, 2023, compared to HK$367,000 in 2022, indicating a 7.6% increase[178]. - The amortization of film rights for the six months ended June 30, 2023, was HK$1,607,000, which is a new expense not recorded in the previous year[171]. - The company reported a net foreign exchange gain of HK$146,000 for the six months ended June 30, 2023, compared to a loss of HK$582,000 in 2022, showing a significant turnaround[180]. - The company incurred finance costs totaling HK$246,000 during the reporting period[186]. - The company has not reported any significant events occurring after June 30, 2023, up to the report date[160].

Financial Performance - The company's net profit attributable to shareholders for the review period was approximately HKD 4,100,000, a decrease of about 75.3% compared to HKD 16,600,000 in the previous period[22]. - Total revenue for the review period was HKD 32,899,000, a decrease of approximately 17.1% from HKD 39,658,000 in the previous period[34]. - Revenue from the securities brokerage and asset management segments decreased by approximately 29% and 34%, respectively, during the review period[22]. - The company recorded a basic and diluted earnings per share of HKD 0.48, compared to HKD 2.00 in the previous period[30]. - The company reported a net profit before tax of 4,064 thousand HKD for the six months ended June 30, 2023, down from 16,625 thousand HKD in the same period of 2022, indicating a decline of approximately 75.6%[110]. - The company incurred total employee costs of 8,513 thousand HKD for the six months ended June 30, 2023, compared to 7,052 thousand HKD in the previous year, reflecting an increase of about 20.7%[103]. Investments and Assets - The investment in Hope Capital Limited amounted to approximately HKD 96.7 million, representing 10.18% of the group's total assets, which is classified as a significant investment[3]. - As of June 30, 2023, the total number of issued shares was 829,921,572, with a market capitalization of approximately HKD 253 million, down from HKD 270 million as of December 31, 2022[2]. - The total assets of the group amounted to HKD 950,392 million as of June 30, 2023[79]. - Non-current assets decreased from HKD 184,003 million to HKD 173,392 million, a decline of approximately 5%[37]. - Current assets net value decreased from HKD 755,150 million to HKD 733,141 million, a reduction of about 3%[42]. - Total assets minus current liabilities decreased from HKD 939,153 million to HKD 906,533 million, a decrease of around 3.5%[43]. Liabilities and Equity - The total liabilities of the group were HKD 45,885 million as of June 30, 2023[79]. - Non-current liabilities increased from HKD 1,698 million to HKD 2,026 million, an increase of approximately 19%[44]. - Total equity attributable to owners decreased from HKD 764,868 million to HKD 734,614 million, a decline of about 4%[47]. - The company did not have any bank or other borrowings as of June 30, 2023, resulting in a debt-to-equity ratio of zero[23]. Revenue Streams - Brokerage commission and settlement fee income increased to HKD 685 million, up from HKD 375 million, representing an 82.67% growth year-over-year[61]. - Asset management fee income rose to HKD 2,170 million, compared to HKD 1,871 million, reflecting a 15.97% increase[61]. - Interest income from margin clients was HKD 23,845 million, slightly up from HKD 23,270 million, indicating a 2.46% growth[61]. - Interest income from receivables decreased to HKD 5,817 million from HKD 8,845 million, a decline of 34.29%[61]. Business Operations and Strategy - The company plans to further develop its integrated financial services business, including brokerage, asset management, and corporate finance advisory services, while cautiously expanding into the retail market[9]. - The company has initiated a film distribution licensing business targeting Hong Kong/Macau and North America, expecting meaningful contributions from this new venture in the future[21]. - The company will continue to explore investment opportunities in the film industry, despite previously halting investments in this sector[10]. - The company has commenced film distribution rights business, expanding its operations into the entertainment sector[160]. - The company maintains a cautious approach towards new business and expansion plans due to the current unstable market conditions[164]. Risk Management - The company faces minimal currency risk as most transactions are denominated in HKD and USD, with no currency hedging policies in place[5]. - The group maintains strict monitoring of outstanding receivables to minimize credit risk[134]. - The expected credit loss for receivables is remeasured due to stage transfers impacting the total value and related provisions[147]. - The expected credit loss rate for margin loans was 2.35% as of June 30, 2023, with a total margin loan receivable of HKD 458,856,000[130]. Dividends and Shareholder Returns - The board does not recommend any interim dividend for the review period, consistent with the previous year[8]. - The company did not declare or propose any dividends for the six months ended June 30, 2023, consistent with the previous year[109]. Accounting and Compliance - The company is expected to reflect changes in accounting policies in the upcoming annual financial statements, which may impact future financial reporting[51]. - The company confirmed that the application of recent accounting standards did not have a significant impact on the financial statements for the six months ended June 30, 2023[60]. - The group has not reported any significant impact from the application of the revised standards on its financial statements for the six months ended June 30, 2023[66].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：585） 茲提述意馬國際控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）截至二零二二 年十二月三十一日止年度之年報（「年報」）。除另有界定者外，本公告所用詞彙具有年報內 所界定之相同涵義。 股份獎勵計劃 (1) 根據股份獎勵計劃可發行股 份總數及佔於年報日期已發 行股本之百分比 (2) 股份獎勵計劃項下各參與人 士可獲股份數目上限 * 僅供參考 (3) 根據股份獎勵計劃授出之獎 勵之歸屬期 (4) 申請或接納獎勵時應付之款 項，及必須或可能進行付款 或催繳或須就該等目的償還 貸款之期限 重大投資 截至 | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------|------------|-------------------|------------|---------- ...

Corporate Governance - The Company has established a clear separation of roles between the chairman and chief executive officer, with responsibilities delegated to executive directors and the general manager for day-to-day operations[3]. - The Audit Committee is responsible for reviewing the Company's financial information and ensuring compliance with the Corporate Governance Code[7]. - The Nomination Committee held two meetings during the year to assess the structure and independence of the Board[12]. - The Remuneration Committee recommends remuneration policies and packages based on performance and market conditions[16]. - The Company is committed to good corporate governance, overseeing risk management and internal control systems on an ongoing basis[22]. Risk Management and Internal Controls - The internal control system includes strict access control to confidential information and guidelines for handling such information[30]. - The Company has implemented measures to identify and manage significant risks that may impact performance, including ESG-related risks[25]. - The Group's internal control policies for money lending include ongoing monitoring of credit risk and loan recoverability[142]. - Imagi Lenders has established internal control policies for ongoing monitoring of credit risk associated with its lending operations[111]. Financial Performance - The company reported a net loss attributable to shareholders of approximately HK$11 million for the year under review[67]. - The Group recorded a revenue decrease of approximately 44% for the financial year 2022 compared to the previous year, excluding net realized losses from sales of investments classified as held-for-trading[85]. - The net loss attributable to shareholders for the Year under Review was approximately HK$11 million[86]. - Revenue (excluding net realized losses from sales of investments) decreased by 44% to approximately HK$66.8 million compared to approximately HK$118.2 million in 2021[182]. - The Group's net loss attributable to shareholders for the year was approximately HK$11 million, a decrease of 67% compared to a net loss of approximately HK$33.7 million in the previous year[184]. Business Strategy and Outlook - The company expects substantial improvement in the business environment in Hong Kong and China for 2023 due to the easing of COVID-19 restrictions and regulatory clampdowns[68]. - The management remains optimistic about performance improvements in 2023, driven by a better business environment and reduced interest rate pressures[71]. - The Company plans to persist with its expansion strategy in financial services while proceeding with caution and monitoring market conditions[71]. - The Group's focus on niche customers allows for a tailored credit assessment process rather than a mechanical approach[116]. - The Company aims to attract more clients by enhancing its technology infrastructure and service types through strategic partnerships and acquisitions[103]. Loan and Investment Activities - Total new loan principal issued by the group amounted to HK$182.5 million, generating interest and commitment fee income of approximately HK$16.3 million[72]. - The Group granted new loans totaling approximately HK$182.5 million, with interest income from lending activities around HK$15.8 million, at competitive rates between 4% and 15%[120]. - As of December 31, 2022, outstanding loans receivable amounted to approximately HK$174.6 million, with the largest single loan accounting for about 43% of total receivables[120]. - The Company recognized an impairment provision of approximately HKD 6,900,000 for the outstanding margin loans as of December 31, 2022, based on an independent professional valuation[106]. - The Group invested approximately HK$16.9 million in four movies between 2018 and 2021, with one movie expected to be released in 2024[152]. Market Conditions and Economic Environment - The high interest rate regime is anticipated to top out and reverse in the coming year, potentially benefiting the global economy and financial markets[68]. - The financial markets faced significant pressure in 2022 due to inflation and regulatory clampdowns, but a rebound was observed in November and December[148]. - The management expects the overall market environment to improve in 2023, with reduced pressure from interest rate hikes and COVID-19 restrictions[93]. Business Segments and Contributions - The brokerage and related services business is expected to continue improving and remain a significant contributor to the group's operations and profits[71]. - The brokerage and related services business achieved stable performance despite adverse market conditions, supported by significant investments and a full range of licenses obtained since 2017[93]. - The Company anticipates improvements in the brokerage and related services business performance in 2023, contributing significantly to operations and profitability[93]. - The Group plans to explore acquisitions and strategic alliances with local brokerage firms to enhance service offerings and attract more clients[80]. - The Company will continue to focus on its core Integrated Financial Services business, which has been its primary focus since 2016[124]. Management and Personnel - Mr. Kitchell Osman Bin has over 20 years of experience as a veteran investor in Hong Kong equity markets[196]. - Mr. Kitchell joined the Group as an executive Director in May 2016 and became chairman on October 11, 2021[196]. - Koji Shimazaki has over 20 years of experience in web development, programming, and production quality control[199]. - Koji Shimazaki joined the Group as an executive Director in May 2016[199]. - Employee costs for the year amounted to approximately HK$15.0 million, an increase from approximately HK$13.0 million in 2021[167].

Financial Performance - The company reported total revenue of HKD 58,874,000 for the year ended December 31, 2022, compared to HKD 36,954,000 in the previous year, representing a 59% increase[92]. - The group’s total revenue from external customers was HKD 58,874,000, with no inter-segment revenue reported[127]. - The company reported a net loss attributable to shareholders of approximately HKD 11,000,000 for the review year, a decrease from a net loss of approximately HKD 33,700,000 in the previous fiscal year[52]. - The company incurred a net loss of HKD 14,579,000 for the year, an improvement from a net loss of HKD 36,243,000 in the prior year[95]. - The company reported a loss attributable to owners of the company of HKD 10,972,000 for the year ended December 31, 2022, compared to a loss of HKD 33,699,000 in the previous year, representing a 67.4% improvement[99]. - The group reported a consolidated pre-tax loss of HKD 10,853,000 for the period[126]. - The company reported a basic and diluted loss per share of HKD 1 for 2022, improving from a loss of HKD 4 per share in 2021[99]. - The company’s basic loss per share improved to HKD 0.0132 in 2022 from HKD 0.0406 in 2021, reflecting a decrease in loss per share of approximately 67.5%[170]. Loan and Receivables - The total receivables from loans increased to HKD 174,625,000 in 2022 from HKD 127,835,000 in 2021, reflecting a growth of approximately 36.5%[8]. - The company provided loans ranging from HKD 2,500,000 to HKD 75,000,000 in 2022, compared to HKD 10,000,000 to HKD 42,000,000 in 2021, indicating an expansion in lending capacity[8]. - The company reported that the largest single loan and the top five loans accounted for approximately 43% and 79% of total receivables, respectively, compared to 21% and 83% in 2021[9]. - As of December 31, 2022, overdue loans exceeding one month but not exceeding three months amounted to HKD 5,037,000, with overdue loans exceeding six months but not exceeding one year totaling HKD 17,694,000[11]. - The provision for expected credit losses as of December 31, 2022, was HKD 22,731,000, up from HKD 3,994,000 in the previous year, reflecting a significant increase of approximately 469.5%[20]. - The outstanding margin loans from the securities brokerage business amounted to approximately HKD 476,900,000, with a provision for expected credit losses of about HKD 6,900,000[44]. - The company’s interest income from receivable loans increased to HKD 15,785,000, up 33% from HKD 11,825,000 in the previous year[92]. Investments and Acquisitions - The company completed the acquisition of 51% of Supreme China Securities Limited for a cash consideration of HKD 21,594,000, which is expected to expand its business scope and reduce operational costs[27]. - Since the acquisition, Supreme China contributed HKD 3,007,000 to the company's revenue and accounted for a loss of HKD 2,507,000 for the year ended December 31, 2022[27]. - The company acquired a 30% stake in Hope Capital Limited and its wholly-owned subsidiary for HKD 48,000,000, aiming to enhance operational synergies in the financial services sector[197]. - The company completed the sale of 6.28% of its subsidiary, Imagi Fin Group Limited, for HKD 55,000,000, reducing its ownership from 100% to approximately 93.72%[80]. - The company recognized a loss of approximately HKD 6,858,000 from the sale of an associate during the review period[88]. Financial Position - As of December 31, 2022, total risk for loans was HKD 174,625,000, an increase from HKD 127,835,000 as of December 31, 2021, representing a growth of approximately 36.5%[20]. - The company’s total liabilities decreased to HKD 755,150,000 in 2022 from HKD 768,846,000 in 2021, showing a reduction of 1.2%[103]. - The company’s non-current assets totaled HKD 184,003,000 in 2022, an increase from HKD 134,122,000 in 2021, indicating a growth of 37.2%[102]. - Current assets increased significantly to HKD 785,109,000 in 2022 from HKD 157,659,000 in 2021, marking a substantial rise of 396.5%[103]. - The total equity attributable to the group as of December 31, 2022, was HKD 169,121,000[193]. - The company’s cash and cash equivalents, including bank balances, amounted to HKD 785,109,000 in 2022, a significant increase from HKD 782,324,000 in 2021, indicating improved liquidity[103]. Operational Highlights - The company is focusing on its core business of integrated financial services, which includes securities brokerage and related financial advisory services, asset management, and margin financing[41]. - The brokerage and related financial services generated total revenue of approximately HKD 49,200,000 during the review year[44]. - The company believes that brokerage commissions, underwriting fees, and asset management fees will continue to significantly contribute to its operations and profitability[42]. - The company is currently evaluating the potential impacts of new accounting standards that have been announced but are not yet effective[38]. - The company plans to maintain minimal resources in the computer imaging business until there is a substantial improvement in its potential and outlook[51]. Employee and Administrative Costs - The group employed 28 staff members as of December 31, 2022, compared to 21 in 2021, with total employee costs amounting to approximately HKD 15 million, up from HKD 13 million in 2021[78]. - The company’s administrative expenses were HKD 35,510,000, slightly reduced from HKD 38,176,000 in the previous year[95]. - Total employee costs increased to HKD 15,239,000 in 2022, up from HKD 13,123,000 in 2021, reflecting a rise of about 16.1%[164]. Market Outlook - The company expects significant improvement in the overall business environment in Hong Kong and China in 2023, driven by the easing of COVID-19 restrictions and regulatory relaxations[60]. - The brokerage and related services business is anticipated to continue improving in 2023, contributing significantly to the group's operations and profits[61].

Loan Issuance and Interest Rates - For the fiscal year ended December 31, 2021, the group issued loans ranging from HKD 10 million to HKD 42 million, with interest rates between 4% and 48%[7]. - The highest interest rate for a single loan was 48%, while most unsecured loans had rates between 7% and 15%, indicating competitive market rates[7]. Loan Concentration and Client Focus - As of December 31, 2021, outstanding loans were concentrated among seven clients, with the largest single loan and the top five loans accounting for approximately 21% and 83% of total receivables, respectively[8]. - The company focuses on high-quality clients, primarily providing large loans of HKD 5 million or more, and evaluates each borrower on a case-by-case basis rather than relying solely on credit scores[11][15]. Credit Risk Management - The internal monitoring policies are in place to continuously assess credit risk and ensure compliance with lending regulations[11]. - The company has established a loan monitoring mechanism to track loan recoverability and address potential issues proactively[16]. - The company’s loan approval process includes a thorough assessment of the applicant's financial status, collateral availability, and past payment records[12][13]. - The company will regularly review the loan amounts and terms based on changes in its circumstances and the current economic environment[4]. Collection Methods - The company employs various collection methods for overdue loans, including reminders and potential legal action if necessary[16]. Corporate Governance - The board of directors includes Kitchell Osman Bin as the chairman and several executive and independent non-executive directors[18]. Market Expansion - The company is focused on expanding its market presence and enhancing its product offerings[19].