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].

Business Overview - The Group's principal business includes integrated financial services, investment holdings, computer graphic imaging (CGI), and entertainment business[9]. - Integrated Financial Services encompass securities brokerage, financial advisory services, margin financing, asset management, corporate finance advisory, money lending, securities investments, and proprietary trading[10]. Financial Performance - The unaudited interim report covers the six-month period ended June 30, 2022[8]. - Total revenue for the six months ended June 30, 2022, was HK$39,658,000, a decrease of 36.1% compared to HK$62,052,000 in 2021[134]. - The consolidated profit before tax for the Period under Review was approximately HK$18 million, an increase from HK$10.7 million in the Previous Period, primarily due to a decrease in unrealised losses from equity investments[49][50]. - Profit for the period was HK$18,286,000, an increase of 115.5% compared to HK$8,495,000 in 2021[140]. - Profit before tax increased to HK$18,276,000 from HK$10,695,000, reflecting a growth of 70.5%[140]. - The total comprehensive income for the period was HK$9,097,000, a significant recovery from a comprehensive expense of HK$2,764,000 in the previous year[145]. Revenue Breakdown - Imagi Brokerage generated approximately HK$14 million from asset management and financial services for the Period under Review, up from HK$4 million in the corresponding interim period in 2021, marking a 250% increase[15]. - Revenue from the money lending business increased by approximately 28% from approximately HK$6.9 million in the same interim period in 2021 to approximately HK$8.8 million for the Period under Review[27]. - The segment revenue for securities brokerage and asset management was approximately HK$37.5 million and HK$33.3 million respectively, compared to HK$50.6 million and HK$43.1 million for the same interim period last year, indicating a decline of 26% and 23% respectively[22]. - Brokerage related commission income and clearing fee income was HK$375,000, down from HK$14,438,000, representing a decline of 97.4%[134]. - Asset management fee income decreased to HK$1,871,000 from HK$4,098,000, a drop of 54.4%[134]. - Interest income on margin clients was HK$23,270,000, down 27.5% from HK$32,099,000[134]. Market Conditions and Challenges - The company faced challenges due to the COVID-19 pandemic, inflation, the Ukraine conflict, and regulatory actions in China, leading to a substantial decline in the Hong Kong equity market[22]. - Management believes the long-term prospects of the Hong Kong equity market remain promising despite current unstable conditions[22]. - The Company is taking a cautious approach towards new business ventures and expansion plans in light of the current market conditions[22]. - The Company has adopted a conservative approach towards growing the money lending business due to the current uncertain and poor economic environment[27]. - The Company intends to enter the mass market to diversify its business portfolio while adopting a cautious approach to near-term expansion due to challenging financial market conditions[57]. Investments and Acquisitions - The acquisition of a 51% shareholding in Supreme China was completed on May 27, 2022, for an adjusted cash consideration of HK$21,594,000, with expectations of additional contributions to the brokerage business[17]. - The Group had invested approximately HK$16.9 million in four proposed films out of a total budget of HK$20.4 million under the Film Investment Agreements[44][46]. - The Company has suspended investments in the movie industry during the review period but will continue to evaluate investment opportunities as they arise[59]. Corporate Governance and Structure - The Board consists of three executive directors and four independent non-executive directors, ensuring a diverse governance structure[117]. - The Company has complied with the Corporate Governance Code and maintains high standards of corporate governance practices[66]. Share Capital and Equity - As of June 30, 2022, the Company had 829,921,572 shares issued, with Kenson Investment Limited holding 21.31% of the shares[84][88]. - The Company holds approximately 93.72% of the share capital of Imagi Fin Group Limited after the issuance of new shares[39]. - The Company has not purchased, sold, or redeemed any of its listed securities during the review period[102]. - The 2022 Share Option Scheme allows for the issuance of up to 82,992,157 shares, approximately 10% of the issued share capital as of the interim report date[103]. Financial Position - As of June 30, 2022, the Group's bank balances amounted to approximately HK$161 million, with a current ratio of approximately 24 times[51]. - The company's net assets increased to HK$983,784,000 as of June 30, 2022, compared to HK$898,940,000 at the end of 2021[157]. - The total equity attributable to owners of the company was HK$802,486,000, an increase from HK$784,596,000 at the end of 2021[157]. - The company reported other comprehensive expenses of HK$9,189,000 for the period, an improvement from HK$11,259,000 in the previous year[145]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period increased to HK$160,866,000 from HK$98,939,000, marking a growth of about 63%[170]. - Net cash used in operating activities increased to HK$59,684,000 compared to HK$36,820,000 in the previous year, indicating a rise of about 62%[167]. - Operating cash flows before movements in working capital decreased to HK$34,215,000 from HK$43,870,000, representing a decline of approximately 22%[167]. Compliance and Accounting Standards - The interim financial report was prepared in accordance with Hong Kong Accounting Standard 34, ensuring compliance with relevant regulations[172]. - The Group has applied amendments to HKFRS 3, HKAS 16, and HKAS 37 during the current accounting period[180]. - The finance department collaborates with external valuers to establish appropriate valuation techniques when Level 1 inputs are unavailable[197].

Financial Performance - The Group recorded a net loss before tax of approximately HK$34 million for the year ended 31 December 2021, compared to a net profit before tax of approximately HK$274 million for 2020[17]. - The net loss attributable to shareholders for the Year under Review was approximately HK$33.7 million, a significant decline from a net profit of approximately HK$265.9 million in the corresponding financial year in 2020[84]. - Total net realized losses from sales of listed equity investments and unrealized losses from changes in fair value were approximately HK$86 million and HK$28.7 million, respectively[77]. - Revenue from the securities brokerage and asset management segment increased over 2.3 times to approximately HK$102 million, up from approximately HK$44 million in the corresponding financial year in 2020[85]. Investment Activities - The Company suffered net realized losses from sales of listed equity investments of approximately HK$81.2 million and from listed debt securities of approximately HK$4.7 million for the year under review[17]. - The Group had made a total of approximately HK$16.9 million investments in relation to the development of four proposed films under the Agreements[22]. - The Agreements for film investments expired on 31 December 2021, and the Company will take a conservative stance in reviewing future opportunities towards movie investments[22]. - The Company has invested approximately HK$16.9 million out of a total budgeted investment of HK$20.4 million in the movie business, which has now ended[55]. Revenue Generation - Interest income from margin financing services increased by 63% to approximately HK$61.2 million[20]. - The asset management business generated management fee income of approximately HK$6.5 million, up from HK$5.4 million in 2020[20]. - Income from brokerage-related commission and clearing fees was HK$3.3 million and HK$12.9 million, compared to HK$0.7 million and HK$0.43 million respectively for 2020[20]. - The Group generated aggregate revenue of approximately HK$102 million from brokerage-related services for the year under review[20]. Business Strategy and Focus - The Company will continue to focus on developing its core business in integrated financial services in 2022[20]. - The Company expects the principal core business of integrated financial services to continue its steady progress and expand significantly in 2022[40]. - The Group will continue to review its strategy in securities investments and proprietary trading due to the adverse effects of the pandemic and regulatory pressures[38]. - The Company is exploring opportunities to acquire potential brokerage firms to enhance the variety and quality of brokerage-related services[62]. Corporate Governance - The company has complied with the Corporate Governance Code provisions throughout the Year under Review[153]. - The independent non-executive Directors play a crucial role in ensuring high standards of financial reporting and safeguarding shareholder interests[164]. - The Group has a strong corporate governance framework to enhance accountability and transparency to stakeholders[152]. - The Company has adopted a Board Diversity Policy to ensure a diverse composition of skills, experience, and backgrounds among its Board members[189]. Board Composition and Leadership - The Board comprises three executive Directors and four independent non-executive Directors, bringing a diverse range of skills and experience to the Group[156]. - The Group's independent non-executive Directors have diverse backgrounds in finance, law, and management, enhancing governance and strategic oversight[134][137][138]. - The roles of Chairman and Chief Executive Officer are separated to ensure effective leadership and management within the Company[195]. - The Board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, each with specific responsibilities and resources[198]. Financial Position and Liquidity - As of December 31, 2021, the Group's bank balances amounted to approximately HK$158 million, compared to HK$41 million in 2020, indicating improved liquidity[89]. - The current ratio as of December 31, 2021, was approximately 58 times, a significant increase from approximately 5.7 times in 2020[89]. - The Group had no bank or other borrowings as of December 31, 2021, resulting in a gearing ratio of zero[90]. - The consolidated net asset value attributable to shareholders per share as of December 31, 2021, was approximately HK$0.95, down from approximately HK$0.99 in 2020[93]. Employee and Operational Insights - As of December 31, 2021, the Group employed 21 employees, a decrease from 22 in 2020, with total staff costs amounting to approximately HK$13 million, down from HK$14 million in 2020[106]. - The Company has adopted the Model Code for Securities Transactions by Directors to ensure compliance with securities transaction standards[154]. - All Directors are encouraged to participate in continuous professional development to enhance their knowledge and skills[179]. - The Company provides new Directors with an induction to familiarize them with business operations and governance practices[185].

Financial Performance - Imagi Brokerage's total assets under management reached approximately HK$793 million as of June 30, 2021, generating asset management fee income of approximately HK$4.1 million during the review period [13]. - Revenue from placements and underwriting services for the review period was approximately HK$12.5 million, a significant increase from approximately HK$0.3 million in the corresponding period of 2020 [15]. - Imagi Brokerage's revenue for the Period under Review was approximately HK$50.6 million, a substantial increase from approximately HK$16 million in the same period last year, representing a year-over-year growth of 216.25% [21]. - The segment results for Imagi Brokerage were approximately HK$43.1 million, compared to approximately HK$14.2 million for the same interim period last year, indicating a year-over-year increase of 203.77% [23]. - The money lending business contributed approximately HK$6.9 million in revenue during the Period under Review, reflecting the company's cautious approach in a challenging economic environment [26]. - The company reported a total revenue of HK$9,280,000 for the period ending June 30, 2021, representing a year-over-year increase of 18.24% [123]. - The net loss for the same period was HK$21,780,000, which is a decrease of 0.78% compared to the previous year [127]. - The company achieved a market capitalization of HK$20,385,253,835, reflecting a growth of 1.78% [129]. - The total assets held by the company amounted to HK$942,527,875 as of June 30, 2021 [141]. Margin Financing - The outstanding margin financing as of June 30, 2021, was approximately HK$581 million, with related revenue of approximately HK$32.1 million, compared to HK$308 million and HK$15.4 million for the same period in 2020, representing a year-over-year increase of 88% in outstanding margin financing and 108% in revenue [14]. - The company has focused substantial resources on the development of its margin financing business, indicating a strategic emphasis on expanding this segment [14]. Business Development and Strategy - Imagi Brokerage is licensed for multiple regulated activities, including Type 1 (Dealing in Securities), Type 2 (Dealing in Futures Contracts), Type 4 (Advising on Securities), Type 5 (Advising on Futures Contracts), and Type 9 (Asset Management) under the Securities and Futures Ordinance [10]. - The company is committed to enhancing its brokerage and related services, aiming to capture a larger market share in the financial services sector [10]. - The report highlights the company's ongoing efforts to improve its financial service offerings and expand its client base through strategic initiatives [10]. - The company is taking a cautious approach towards new business ventures and expansion plans due to current unstable market conditions [21]. - The company has applied for an additional license for Type 6 (Advising on Corporate Finance) regulated activity, which is expected to generate additional revenue [21]. - The company has commenced a new service in IPO financing and secured banking facilities dedicated to this business [21]. - Imagi Brokerage's management is committed to continuously reviewing market conditions and adjusting strategies accordingly [21]. Market Presence and Future Outlook - The company has a strategic focus on expanding its market presence, particularly in the new energy vehicle sector [176]. - The company is actively pursuing new product development initiatives to enhance its competitive edge in the market [176]. - The company reported a significant investment in technology, with a focus on innovation and sustainability [176]. - The company is exploring potential mergers and acquisitions to accelerate growth and market penetration [176]. - The company has set ambitious performance guidance for the upcoming fiscal year, aiming for a revenue increase of at least 15% [176]. - The company is committed to improving operational efficiency, targeting a reduction in net losses by 10% in the next quarter [176]. Market Conditions - Despite the challenges posed by the COVID-19 pandemic, the company remains confident in the long-term prospects of the Hong Kong equity market [21].

Financial Performance - The company reported a net profit after tax of approximately HK$271.4 million for the year ended December 31, 2020, compared to a net loss of approximately HK$159.7 million in the previous year, marking a significant turnaround [29]. - Interest income from margin financing services increased by 463% to approximately HK$37.5 million, contributing to the overall profit growth [29]. - The newly developed asset management business generated management fee income of approximately HK$5.4 million for the group [29]. - Interest income from the money lending business rose by 159% to approximately HK$14.6 million, further enhancing the company's financial performance [29]. - The company realized net gains from sales of listed equity and debt investments classified as held-for-trading investments amounting to approximately HK$102.3 million, primarily from the disposal of listed securities in October 2020 [29]. - The fair value of financial assets classified as held-for-trading turned from unrealized losses of approximately HK$28.4 million in 2019 to unrealized gains of approximately HK$101 million for the year under review [29]. - The net profit attributable to shareholders for the Year under Review was approximately HK$265.9 million, a turnaround from a net loss of approximately HK$159.5 million in the previous year [75]. - Interest income on margin clients increased from approximately HK$6.7 million to approximately HK$37.5 million [75]. - Interest income on loans receivable rose from approximately HK$5.7 million to approximately HK$14.6 million [75]. - Net realised gains from sales of listed equity investments/debt investments classified as held-for-trading investments amounted to approximately HK$102.3 million, compared to net realised losses of approximately HK$80.3 million last year [75]. Business Development and Strategy - The company continued to focus on developing its core integrated financial services business during the year [29]. - The Company expects the principal core business of integrated financial services to continue expanding and improving in the coming year despite a challenging business environment [41][43]. - The Management plans to further recruit personnel for Imagi Brokerage and enter the mass market as part of its expansion strategy [46][48]. - The Company anticipates that the money lending business will provide consistent and significant returns in the future [47][49]. - The Group has invested approximately HK$20.4 million in a total of six films, with HK$12.1 million already invested in three films, one of which received great reviews after its screening in October 2019 [33][34]. - The Group disposed of part of its listed equity investments for net proceeds of approximately HK$150.7 million, which was reinvested into the development of integrated financial services [40][41]. Market Conditions and Risks - The overall business environment remains difficult, with uncertainties expected to persist in the coming year due to international trade conflicts and the COVID-19 pandemic [46]. - The Hong Kong and global economy were negatively impacted by international factors, including ongoing trade disputes between China and the United States, and the effects of COVID-19, which are expected to persist in the coming year [52][53]. - The Company plans to allocate more resources to its principal business and may further reduce its commitment to securities investments and proprietary trading in the coming year [52][53]. - The Company will continuously review its strategy in the securities investments and proprietary trading segment due to uncertainties in the market [68]. - The Company will continue to monitor exchange rate fluctuations and take necessary measures to minimize adverse impacts [90]. Corporate Governance - The company has complied with the Corporate Governance Code and the code provisions set out in Appendix 14 to the Listing Rules during the Year under Review [129]. - The Board comprises three executive Directors and four independent non-executive Directors, reflecting a balance of skills and experience appropriate for business requirements [132]. - The independent non-executive Directors are identified in all corporate communications whenever the names of Directors are disclosed [135]. - The company recognizes the importance of good corporate governance for enhancing accountability and transparency to stakeholders [128]. - There are no relationships among members of the Board, ensuring independence in decision-making [136]. - The company has adopted the Model Code for Securities Transactions by Directors, with all Directors confirming compliance throughout the Year under Review [130]. - The senior management team has extensive experience in corporate finance and business development, contributing to strategic planning [124]. - The company has a diverse Board with high-caliber executives from various industries, enhancing its governance structure [133]. - The company has maintained a strong focus on operational aspects and strategic planning in its business development efforts [125]. - The company’s governance practices are regularly updated and made available on its website and the Stock Exchange [135]. Financial Position and Ratios - As of December 31, 2020, the Group had bank balances of approximately HK$41 million, down from HK$734 million in 2019 [78]. - The current ratio as of December 31, 2020, was approximately 5.7 times, compared to approximately 112 times in 2019 [78]. - The gearing ratio was zero as of December 31, 2020, down from 196.6% in 2019 [80]. - The total number of issued shares was 829,921,572, with a market value of approximately HK$664 million as of December 31, 2020 [85]. - The net asset value per share as of December 31, 2020, was approximately HK$1.098, compared to HK$0.733 in 2019 [87]. - The total staff cost for the year amounted to approximately HK$14 million, a decrease from approximately HK$19 million in 2019 [92]. - The Group employed 22 employees as of December 31, 2020, down from 37 employees in 2019 [92]. Shareholder and Director Information - The Company did not recommend the payment of a final dividend for the year under review, consistent with 2019 [91]. - In May 2020, the Company repurchased HK$1 billion of guaranteed notes at an average price of approximately HK$1.0226, with no notes outstanding after cancellation [99]. - The Company completed deemed disposals of shares in Imagi Brokerage for a total cash consideration of HK$74.34 million, strengthening its capital base [101]. - The external auditor attended the annual general meeting to address shareholder questions, emphasizing the importance of shareholder feedback [144]. - Directors are encouraged to participate in continuous professional development to keep their knowledge and skills relevant [154]. - Each non-executive Director has a two-year appointment term, with all existing executive Directors having an initial two-year term renewed for three years since 2018 [155]. - Directors appointed to fill casual vacancies must be subject to election by shareholders at the first general meeting after their appointment [156]. Board Committees and Meetings - The Company has established three Board committees: Audit Committee, Nomination Committee, and Remuneration Committee to oversee specific aspects of its affairs [173]. - The Audit Committee held four meetings during the Year under Review and reviewed the Group's financial statements for the year ended 31 December 2019 and interim results for the six months ended 30 June 2020 [181]. - The Audit Committee recommended the re-appointment of external auditors based on their performance, fees, and terms of engagement [181]. - The Nomination Committee is responsible for reviewing the structure, size, and composition of the Board, and monitoring the implementation of the Board Diversity Policy [183]. - The Company has adopted a Board Diversity Policy to ensure a diverse range of skills, experience, and perspectives on the Board since 26 August 2013 [162]. - The Audit Committee is tasked with reviewing the risk management and internal control system of the Group [181]. - The Company has liability insurance for Directors and officers to protect against legal actions, complying with Code Provision A.1.8 of the CG Code [169]. - The roles of chairman and chief executive are separated to ensure effective leadership and management of the Group [170]. - The Nomination Committee assesses candidates for directorships based on qualifications, experience, and commitment to the Company [167]. - The Company Secretary maintains minutes of all meetings and resolutions of the Board committees, which are circulated to members [173]. - The Board is responsible for establishing and maintaining effective risk management and internal control systems, supported by the Audit Committee and independent internal control advisors [199]. - The review of the Company's risk management and internal control systems included financial, operational, and compliance controls, as well as the adequacy of resources in accounting and internal audit functions [200].