Core Viewpoint - China Financial Investment Management (00605) reported a total revenue of HKD 78.35 million for the fiscal year 2024, representing a year-on-year growth of 20.61% and a return to profitability with a net profit of HKD 41.23 million [3] Financial Performance - The company achieved a net cash flow from operating activities of HKD 73.368 million, which is a decline of 74.42% year-on-year [32] - Basic earnings per share for the year were HKD 0.2, with a weighted average return on equity of 6.45%, an increase of 29.13 percentage points compared to the previous year [29][3] - As of April 28, 2024, the company's price-to-earnings ratio (TTM) is approximately 5.18, the price-to-book ratio (TTM) is about 0.32, and the price-to-sales ratio (TTM) is around 2.72 [3] Revenue Composition - The revenue composition for 2024 includes short-term financing services such as pawn loans and microloans, primarily targeting small and micro enterprises as well as individuals [14] Asset and Liability Changes - As of the end of 2024, the company's cash and cash equivalents decreased by 39.85%, and other non-current financial assets fell by 44.4%, impacting their total asset proportions [37] - Short-term borrowings decreased by 38.68%, and other payables (including interest and dividends) decreased by 4.22%, reflecting a shift in the company's liability structure [40] Liquidity Ratios - The company's current ratio stands at 1.31, indicating a stable liquidity position [44]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported interest and financing advisory service revenue of HKD 101,595,000, a decrease of 22.7% compared to HKD 131,473,000 in 2023[7] - The company achieved a profit attributable to owners of HKD 41,232,000, a significant turnaround from a loss of HKD 159,972,000 in the previous year, representing a 125.8% improvement[7] - Basic earnings per share increased to HKD 0.20 from a loss of HKD 0.79, marking a 125.3% change[7] - The total loan amount for the company was approximately HKD 998,071,000, reflecting a year-on-year decline of about 16.3%[15] - The impairment loss provision for receivables was approximately HKD 27,814,000, a substantial decrease of 84.9% compared to the previous year[15] - Interest and fees decreased by approximately 56.4% to about HKD 29,434,000 from HKD 67,449,000 in the previous year due to a reduction in overall borrowings[25] - The company reported a net profit attributable to owners of approximately HKD 41,232,000, a turnaround from a loss of HKD 159,972,000 in the previous year, primarily due to the settlement of unauthorized loans and guarantees, resulting in a reversal of liabilities totaling approximately HKD 170,311,000[30] - General and administrative expenses increased by 11.9% to approximately HKD 122,933,000, with service fees related to settlements amounting to approximately HKD 24,906,000; excluding these fees, expenses decreased by 10.8% to approximately HKD 98,027,000[29] Risk Management - The company will continue to focus on risk management to ensure long-term stability and development amid challenging market conditions[15] - The overall credit quality and mortgage loan balance remained within a reasonable range despite market adjustments[11] - The company actively reviews and manages its capital structure to ensure sustainable operations and reasonable financing costs[32] - The company is exposed to foreign exchange risk due to its assets and liabilities being primarily denominated in RMB and HKD, with approximately HKD 505,151,000 in unauthorized loans and HKD 260,325,000 in cash equivalents subject to currency fluctuations[43] - The board highlighted various risks including market risk, liquidity risk, and credit risk, emphasizing a comprehensive risk management framework to address these challenges[59][60][61][62] Corporate Governance - The company has a commitment to maintaining high standards of corporate governance, with independent directors actively participating in key committees[49] - The board consists of five members, including one executive director and four independent non-executive directors[125] - The company has adopted the corporate governance code as a benchmark for its governance practices[116] - The independent non-executive directors confirmed their independence in accordance with the listing rules[127] - The board is responsible for leading and monitoring the company's affairs and ensuring effective internal controls and risk management systems[130] - The company has established four committees: audit committee, remuneration committee, nomination committee, and business risk committee[136] - The company provides training for directors on corporate governance and related topics[135] - The company has established a whistleblowing policy to handle any criminal cases, which will be reported to the whistleblowing review committee or directly to the board[184] Strategic Focus - The company plans to optimize product structure and enhance service levels in the micro-loan and mortgage loan sectors to better capture industry growth opportunities[12] - The company aims to create long-term, stable returns for shareholders and stakeholders by strengthening asset structure and risk management[12] - The company expects to benefit from the economic development in mainland China by 2025, despite ongoing challenges in the global and domestic economy[17] - The company aims to restore dividend payments to shareholders as soon as sustainable profitability is achieved[17] - The company is focused on expanding its capital market operations and investor relations, as indicated by the appointment of a dedicated investment director[53] Employee and Management - The company has a strong management team with over 20 years of experience in the banking sector, including Zhang Min's extensive background in financial services[48] - The financial management team, led by the CFO, has over 25 years of experience in finance and accounting, ensuring robust financial oversight[53] - The total employee costs for the fiscal year were approximately HKD 49,424,000, reflecting a decrease of about 8.0% compared to the previous year[38] - The employee compensation policy is based on qualifications, industry expertise, and company performance, with potential discretionary bonuses and stock options[76] Shareholder Information - The company has a total of 115,689,012 ordinary shares, with major shareholders holding 55.28% of the issued share capital[91] - Zhang Xiaolin holds 86,003,712 shares and has a spouse's interest in 29,685,300 shares, while Lu Yun holds 25,365,300 shares and has a spouse's interest in 86,003,712 shares[92] - The company did not recommend any final dividends for the fiscal year 2023, indicating a focus on retaining earnings for future growth[67] - The board of directors may propose and/or declare dividends based on the company's financial condition, subject to shareholder approval[194] Environmental, Social, and Governance (ESG) - The company emphasizes sustainable development as a key to ongoing success and integrates this concept into its business strategy[196] - The board meets at least once a year to discuss and formulate overall environmental, social, and governance (ESG) policies and assess potential impacts and risks[197] - A working group composed of employees from relevant departments systematically manages the company's ESG matters and reports to the board at least annually[198] - The ESG report covers business activities in Beijing, Chengdu, Shenzhen, and Hong Kong, with operations in Chongqing terminated since 2023 due to business restructuring[200]

Financial Performance - The company reported a profit attributable to owners of HKD 41,232,000, a significant recovery from a loss of HKD 159,972,000 in the previous year, representing a 125.8% change [4]. - Basic earnings per share improved to HKD 0.20 from a loss of HKD 0.79, marking a 125.3% increase [4]. - Total comprehensive income for the year was HKD 28,543,000, a recovery from a loss of HKD 167,785,000 in the previous year [5]. - The company reported a pre-tax profit of 41,232,000 HKD for 2024, a significant recovery from a loss of 159,972,000 HKD in 2023 [24]. - The group reported a profit attributable to shareholders of approximately HKD 41,232,000, a turnaround from a loss of about HKD 159,972,000 last year, mainly due to the recovery of liabilities related to unauthorized loans [49]. Revenue and Income - Interest and financing advisory service revenue decreased by 22.7% to HKD 101,595,000 from HKD 131,473,000 [3]. - Total revenue for the year 2024 was HKD 101,595,000, a decrease of 22.7% from HKD 131,473,000 in 2023 [15]. - Interest income and service income net amount for 2024 was HKD 72,161,000, compared to HKD 64,024,000 in 2023, reflecting an increase of 11.3% [15]. - Other income for 2024 was HKD 5,067,000, down from HKD 13,637,000 in 2023, representing a decrease of 62.9% [20]. - Interest and fees decreased by approximately 56.4% to about HKD 29,434,000 from last year's HKD 67,449,000, primarily due to a reduction in overall borrowings and loans [45]. Assets and Liabilities - The company's total assets decreased to HKD 1,294,508,000 from HKD 1,617,216,000, while total liabilities also decreased to HKD 985,685,000 from HKD 1,465,548,000 [6]. - The net asset value increased to HKD 733,660,000 from HKD 699,944,000, indicating a strengthening financial position [7]. - Total receivables decreased to 2,140,875,000 HKD in 2024 from 2,363,211,000 HKD in 2023, reflecting a reduction in outstanding loans [25]. - The company's total borrowings decreased to 661,739,000 HKD in 2024 from 1,079,112,000 HKD in 2023, reflecting a reduction in debt levels [29]. - The total liabilities from unauthorized loans decreased to 113,274,000 HKD in 2024 from 254,340,000 HKD in 2023, showing progress in resolving past issues [31]. Impairment and Asset Quality - The company reported a significant reduction in impairment losses on financial instruments, decreasing to HKD 44,206,000 from HKD 181,566,000 [4]. - The impairment loss on receivables was 44,206,000 HKD in 2024, down from 181,566,000 HKD in 2023, indicating improved asset quality [5]. - The impairment loss provision for receivables was approximately HKD 27,814,000, a significant reduction of about 84.9% compared to the previous year [33]. Operational Efficiency and Strategy - The company plans to continue focusing on improving operational efficiency and exploring new market opportunities in the upcoming fiscal year [4]. - The group aims to maintain a reasonable level of non-performing loans, avoiding significant defaults and asset auctions faced by similar institutions [33]. - The group will continue to monitor market trends closely and adopt prudent strategies while strictly controlling operating costs [34]. Customer and Market Insights - The company did not have any single customer contributing more than 10% of revenue in both 2024 and 2023 [19]. - The contribution of revenue from different operating regions showed a significant change, with Beijing's contribution dropping from 36.9% to 27.9% and Hong Kong's increasing from 27.0% to 30.1% [44]. - As of December 31, 2024, the top five customers accounted for 25.1% of the total outstanding balance of the group's loan portfolio [41]. Employee and Administrative Costs - The company’s employee costs decreased to 49,424,000 HKD in 2024 from 53,694,000 HKD in 2023, reflecting cost management efforts [6]. - General and administrative expenses increased by 11.9% to approximately HKD 122,933,000, with service fees related to settlements accounting for HKD 24,906,000 [48]. Governance and Compliance - The internal control review for the fiscal year showed no significant errors in key operational cycles, indicating effective internal control procedures [71]. - The audit committee, composed of four independent non-executive directors, reviewed the annual financial report and confirmed compliance with relevant financial reporting standards [74]. - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance throughout the reporting period [72]. Future Outlook - The board is optimistic about the group's future development and aims to restore dividend payments to shareholders as soon as sustainable profitability is achieved [34]. - The company has no plans to declare dividends for both years, maintaining a focus on financial recovery [23].

Financial Performance - Interest and financing advisory service revenue decreased by 24.2% to HKD 51,297,000 compared to HKD 67,694,000 in the previous period[22] - The loss attributable to owners of the company narrowed by 84.4% to HKD 18,323,000 from HKD 117,100,000[22] - Basic loss per share improved by 84.5% to HKD (0.09) from HKD (0.58)[22] - The company reported a net loss of HKD 17,915,000 for the six months ended June 30, 2024, a significant improvement compared to a net loss of HKD 115,345,000 for the same period in 2023, representing a reduction of approximately 84.5%[70] - Total revenue for the six months ended June 30, 2024, was HKD 51,297,000, down from HKD 67,694,000 in the same period of 2023, representing a decrease of approximately 24.2%[84] - The company reported a pre-tax loss of HKD 13,919,000, a significant improvement from a loss of HKD 101,688,000 in the same period of 2023, representing a reduction of approximately 86.3%[77] - The company’s total comprehensive expenses for the period amounted to HKD 21,967,000, down from HKD 135,328,000 in the previous year, representing a reduction of approximately 83.8%[70] Loan and Financing Activities - Total new loans issued in the first half of 2024 amounted to HKD 437,270,000, with total loan balance at HKD 1,173,951,000 as of June 30, 2024[25] - The company charges interest and service fees for loans in China at a monthly effective rate ranging from 0.68% to 3.00%, and in Hong Kong from 0.35% to 4.63%[50] - The typical loan term ranges from 90 days to 30 years[50] - The top five customers accounted for 29.4% of the company's outstanding loan balance[50] - As of June 30, 2024, the total receivables from loans amounted to HKD 962,711,000, slightly down from HKD 969,574,000 at the end of 2023[99] - Total borrowings from independent third parties amounted to HKD 985,484,000 as of June 30, 2024, down from HKD 1,079,112,000 as of December 31, 2023[108] Economic Environment - The real estate development investment in mainland China decreased by 10.1% year-on-year to approximately RMB 5.2 trillion in the first half of 2024[24] - The sales area of new residential properties in mainland China dropped by 21.9% year-on-year, with total sales value declining by 26.9%[24] - The GDP growth rate in mainland China for the first half of 2024 was 5%, despite a decrease in overall financing scale by RMB 3.45 trillion compared to the previous year[24] - The Hong Kong economy showed a GDP change rate of 2.7% in Q1 2024, remaining stable compared to the same period in 2023[24] Cost Management - General and administrative expenses decreased by 14.2% to approximately HKD 42,191,000 during the reporting period[54] - The total employee cost during the reporting period was approximately HKD 20,788,000, a decrease of about 15.6% compared to the previous year[61] - Employee costs decreased to HKD 20,788,000 in 2024 from HKD 24,633,000 in 2023, representing a reduction of approximately 15.5%[88] Governance and Compliance - The management plans to enhance governance structure and internal controls to support future development[28] - The audit committee, composed of four independent non-executive directors, reviewed the interim financial results for the six months ending June 30, 2024, and found them compliant with relevant financial reporting standards[149] - The company has adhered to the corporate governance code, except for certain provisions regarding the separation of roles between the chairman and the CEO[145] - The company confirmed that all directors complied with the company's code of conduct during the reporting period[147] Asset Management - The total assets decreased to HKD 1,498,828,000 as of June 30, 2024, down from HKD 1,617,216,000 at the end of 2023, indicating a decline of approximately 7.3%[72] - The company's net asset value decreased to HKD 675,776,000 from HKD 699,944,000, a decrease of about 3.5%[73] - The company's equity attributable to owners decreased to HKD 598,893,000 from HKD 620,714,000, a decrease of approximately 3.5%[73] Impairment and Provisions - The company reported a significant reduction in impairment losses on financial instruments to HKD 9,970,000 from HKD 79,661,000, a decrease of approximately 87.5%[69] - The group recognized a credit impairment provision of HKD 10,246,000 for the six months ended June 30, 2024, compared to HKD 85,332,000 for the same period in 2023, reflecting a significant reduction in provisions[100] Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2024, was HKD 2,468,000, compared to HKD 191,252,000 for the same period in 2023, indicating a decline of approximately 98.7%[79] - The company generated net cash from investing activities of HKD 1,395,000 for the six months ended June 30, 2024, down from HKD 6,208,000 in the prior year, reflecting a decrease of approximately 77.5%[79] - Financing activities resulted in a net cash outflow of HKD 135,105,000 for the six months ended June 30, 2024, compared to an outflow of HKD 152,004,000 in the same period of 2023, showing an improvement of approximately 11.1%[79] Shareholder Information - As of June 30, 2024, the total number of shares held by major shareholders includes 115,689,012 shares, representing 55.28% of the issued share capital[131] - The company did not conduct any equity fundraising activities during the reporting period[139] - The company did not recommend any interim dividend for the period ending June 30, 2023[142]

Financial Performance - Revenue from interest and financing advisory services decreased by 24.2% to HKD 51,297,000 compared to HKD 67,694,000 in the previous year[1] - The loss attributable to the company's owners for the period was HKD 18,323,000, a significant improvement of 84.4% from a loss of HKD 117,100,000 in the same period last year[1] - Basic loss per share improved to HKD (0.09) from HKD (0.58), reflecting an 84.5% reduction in losses[1] - The company reported a pre-tax loss of HKD 13,919,000, an improvement from a loss of HKD 101,688,000 in the previous year[2] - The company reported a pre-tax loss of HKD 18,323,000 for the current period, compared to a loss of HKD 117,100,000 for the same period last year[17] - The company's general and administrative expenses decreased by 14.2% to approximately HKD 42,191,000 during the reporting period[39] - Total employee costs for the reporting period were approximately HKD 20,788,000, a decrease of about 15.6% compared to the previous year[45] Assets and Liabilities - Total assets decreased to HKD 1,498,828,000 from HKD 1,617,216,000, indicating a decline of approximately 7.3%[4] - Current liabilities decreased to HKD 1,325,907,000 from HKD 1,465,548,000, a reduction of about 9.5%[5] - Non-current assets, including goodwill, were valued at HKD 297,967,000, slightly down from HKD 300,073,000[4] - The total equity attributable to the owners of the company decreased to HKD 598,893,000 from HKD 620,714,000, reflecting a decline of about 3.5%[6] - The group’s outstanding borrowings and unsecured bonds were approximately HKD 1,006,047,000, a decrease of about 11.1% compared to the same period last year[41] Cash Flow and Receivables - The net cash and cash equivalents decreased to HKD 320,724,000 from HKD 453,927,000, a decline of approximately 29.2%[4] - As of June 30, 2024, the total receivables amounted to HKD 2,342,347,000, a slight decrease from HKD 2,363,211,000 as of December 31, 2023[19] - The overdue receivables balance as of June 30, 2024, was HKD 622,748,000, down from HKD 636,615,000 as of December 31, 2023, with HKD 565,173,000 overdue for more than 90 days[20] - The company made a credit impairment provision of HKD 10,246,000 for receivables in the six months ending June 30, 2024, significantly lower than HKD 85,332,000 for the same period in 2023[20] - The interest receivables balance as of June 30, 2024, was HKD 5,361,000, compared to HKD 6,199,000 as of December 31, 2023[24] - The overdue interest receivables totalled HKD 3,476,000 as of June 30, 2024, down from HKD 4,520,000 as of December 31, 2023, with HKD 2,399,000 overdue for more than 90 days[25] Revenue Sources - Net interest income and service income for the period was HKD 29,733,000, an increase of 56% from HKD 19,021,000 in the previous year[10] - Other income for the six months ended June 30, 2024, was HKD 1,918,000, down 62% from HKD 5,103,000 in 2023[12] - Interest and financing advisory service revenue for the six months ended June 30, 2024, was approximately HKD 51,297,000, a decrease of about 24.2% compared to HKD 67,694,000 in the same period last year[36] Economic and Market Conditions - The mortgage loan business accounts for 68.2% of the group's total revenue, significantly influenced by the macroeconomic and real estate conditions in mainland China[29] - The real estate development investment in mainland China for the first half of 2024 was approximately RMB 5.2 trillion, a year-on-year decrease of 10.1%[29] - The Hong Kong economy showed a GDP growth rate of 2.7% in Q1 2024, remaining stable compared to the same period in 2023[29] Governance and Future Plans - The group aims to maintain overall business stability while actively seeking new growth opportunities amid a complex economic environment[30] - The group plans to optimize its governance structure and internal controls to support future development[32] - The group is focused on expanding its business in key cities such as Beijing, Chengdu, and Shenzhen, which have shown resilience and development potential[31] Compliance and Corporate Actions - The company did not declare or propose any interim dividends for the current or previous periods[18] - The board does not recommend any interim dividend for the reporting period[53] - The audit committee reviewed the interim results and confirmed compliance with relevant financial reporting standards[57] - The company has not made any significant changes to its financial risk management policies during the reporting period[9] - There have been no significant events occurring after the reporting period up to the announcement date[54]

Financial Performance - The company's interest and financing advisory service revenue for the year 2023 was HKD 131,473,000, a decrease of 34.5% compared to HKD 200,826,000 in 2022[5]. - The loss attributable to owners of the company for 2023 was HKD 159,972,000, representing a significant increase of 204.4% from a loss of HKD 52,553,000 in 2022[5]. - The basic loss per share for 2023 was HKD 0.79, up 203.8% from HKD 0.26 in 2022[5]. - The group's interest and financing advisory service revenue for the fiscal year was approximately HKD 131,473,000, a decrease of about 34.5% from HKD 200,826,000 in the previous year[25]. - The group's financing costs decreased by 50.4% to approximately HKD 67,449,000 from HKD 135,999,000 in the previous year[28]. - The group's general and administrative expenses decreased by 30.6% to approximately HKD 109,908,000[32]. - The total employee cost for the fiscal year is approximately HKD 53,694,000, a decrease of about 24.4% compared to the previous year[42]. Loan and Credit Management - The total loan scale for the group in 2023 was approximately HKD 1,191,946,000, reflecting a year-on-year decline of about 26.7%[12]. - The group made a provision for impairment losses on bad loans amounting to approximately HKD 184,234,000 for the year, indicating a proactive approach to managing credit risk[12]. - As of December 31, 2023, the total outstanding balance of property mortgage loans (net of expected credit losses) accounted for approximately 79.3% of the group's total loan portfolio[23]. - The top five customers accounted for 25.5% of the group's total outstanding loan balance[24]. Market Conditions and Business Environment - The overall economic growth in China for 2023 was 5.2%, but the real estate sector faced significant challenges, with property development investment down nearly 10% year-on-year[8][11]. - The company anticipates that the business environment in 2024 will remain challenging, and it will adopt a prudent approach while strictly controlling operating costs[13]. - The number of properties auctioned in China increased by 36.7% year-on-year, reflecting rising credit risks and shrinking demand in the market[11]. Corporate Governance and Management - The company has established a robust governance structure with various committees overseeing key areas such as audit, remuneration, and risk management[60][62]. - The company has a strong management team with extensive experience in finance, investment, and risk management, enhancing its operational capabilities[64][66]. - The board consists of seven members, including one executive director, one non-executive director, and five independent non-executive directors, ensuring a diverse governance structure[138]. - The board has adopted a diversity policy, ensuring at least one female member and one independent non-executive director residing in Hong Kong[167]. - The company emphasizes the importance of independent judgment in its operations, with all directors having access to necessary information and independent professional advice[146]. Risk Management - The group has implemented a comprehensive risk management framework to regularly review and update risk management policies and procedures in response to market conditions and business strategy changes[73]. - Market risk is defined as the risk of loss in profitability due to market price fluctuations, which the management actively monitors and manages[74]. - Liquidity risk refers to the possibility of failing to meet obligations due to insufficient funds or asset liquidation, with the group maintaining adequate cash levels to mitigate this risk[75]. - Credit risk involves potential losses from customers or counterparties failing to make payments as per contracts, with further details provided in the financial statements[76]. - Operational risk arises from inadequate internal processes, personnel, or systems, which the group mitigates through robust internal controls and clear responsibilities[78]. Shareholder and Investor Relations - The company emphasizes the importance of investor relations and effective communication with stakeholders to support its strategic objectives[66]. - The company will present independent resolutions at shareholder meetings to protect shareholder rights[198]. - Shareholder meetings can be convened upon request by shareholders holding at least 5% of the voting rights[199]. Future Growth and Strategy - The company aims to create sustainable value for customers and shareholders as part of its long-term strategy[14]. - The company is focused on expanding its market presence and exploring new investment opportunities to drive future growth[71]. - The company has plans for future growth, including potential mergers and acquisitions to strengthen its market position[71]. Legal and Compliance - The group is currently facing litigation related to unauthorized loans and guarantees, with a disputed amount totaling approximately RMB 198,700,000[38]. - The group reported no significant violations of applicable laws and regulations that could materially impact its business operations during the reporting period[79]. Employee and Director Compensation - The company has adopted a share incentive plan to reward and retain employees, with a maximum of 21,464,036 shares available for allocation, representing 10% of the issued shares as of the adoption date[89]. - The salary range for senior management is as follows: 3 individuals earned between 0 to HKD 1,000,000, 1 individual earned between HKD 1,000,000 to HKD 1,500,000, and 2 individuals earned between HKD 2,000,001 to HKD 3,000,000[157]. - The company has a compensation clause for directors that has been in effect throughout the financial year[102]. Audit and Financial Reporting - The company’s financial statements were audited by a reputable accounting firm, and a resolution for their reappointment will be presented at the upcoming annual general meeting[126]. - The total fees paid to the auditors during the reporting period amounted to HKD 3,175,000, including HKD 2,650,000 for audit services and HKD 525,000 for non-audit services[190]. - The audit committee conducted three meetings to discuss interim results for the six months ending June 30, 2023, and significant financial reporting matters[154].

Financial Performance - For the year ended December 31, 2023, interest and financing advisory service revenue decreased by 34.5% to HKD 131,473,000 from HKD 200,826,000 in 2022[3]. - The company reported a loss attributable to owners of the company of HKD 159,972,000, a significant increase of 204.4% compared to a loss of HKD 52,553,000 in the previous year[3]. - Basic loss per share increased by 203.8% to HKD (0.79) from HKD (0.26) in 2022[3]. - Total comprehensive loss for the year amounted to HKD 167,785,000, compared to HKD 137,800,000 in 2022[6]. - Total revenue for the year 2023 was HKD 131,473,000, a decrease of 35.3% from HKD 202,211,000 in 2022[16]. - Interest income and service income net amount for 2023 was HKD 64,024,000, slightly down from HKD 64,827,000 in 2022[16]. - Revenue from external customers in China decreased by 39.6% to HKD 95,968,000 in 2023 from HKD 159,185,000 in 2022[19]. - The group reported a pre-tax loss of HKD 159,972,000 for the year 2023, compared to a loss of HKD 52,553,000 in 2022[26]. - Other income for 2023 was HKD 13,637,000, a slight decrease from HKD 14,728,000 in 2022[22]. - The company recorded a significant impairment loss on financial instruments of HKD 181,566,000, compared to HKD 6,369,000 in 2022[5]. Assets and Liabilities - Non-current assets decreased to HKD 597,435,000 from HKD 708,447,000 year-on-year[8]. - Current assets decreased to HKD 1,617,216,000 from HKD 1,935,960,000 in the previous year[8]. - The company's net asset value decreased to HKD 699,944,000 from HKD 871,062,000 year-on-year[9]. - The company’s total liabilities decreased to HKD 1,465,548,000 from HKD 1,624,843,000 year-on-year[8]. - The total amount of loans receivable decreased to HKD 2,363,211,000 in 2023 from HKD 2,660,177,000 in 2022, reflecting a decline of 11.2%[28]. - The impairment loss on loans receivable increased to HKD 1,171,265,000 in 2023 from HKD 1,035,170,000 in 2022[28]. - As of December 31, 2023, the total loans amounted to approximately HKD 1,191,946,000, representing a year-on-year decrease of about 26.7%[36]. - The total non-current assets decreased to HKD 362,894,000 in 2023 from HKD 394,561,000 in 2022[20]. - The total liabilities related to unauthorized guarantees were HKD 74,598,000 as of December 31, 2023, down from HKD 89,340,000 in 2022, a reduction of approximately 16.5%[33]. - As of December 31, 2023, the company's total outstanding loans and unsecured bonds were approximately HKD 1,131,249,000, a decrease of about 17.7% compared to the previous year[59]. Customer and Revenue Insights - The company had 1,621 active customers as of December 31, 2023, with 1,573 being individual customers and 48 being corporate customers[47]. - The top five customers accounted for 25.5% of the total outstanding loan balance[48]. - The company’s revenue contribution by region showed that Beijing accounted for 36.9%, Chengdu and Chongqing 26.2%, Shenzhen 9.9%, and Hong Kong 27.0% for the fiscal year[53]. - The group has no major customers contributing over 10% of total revenue for the years ended December 31, 2023, and 2022[19]. Operational and Strategic Outlook - The company anticipates continued challenges in the global and domestic economy for 2024, prompting a cautious approach to business development and strict cost control[38]. - The company aims to maintain a reasonable level of non-performing loans, avoiding large-scale defaults seen in other institutions[36]. - The group’s current and projected operational and capital needs will primarily be funded through borrowing and equity allocation[60]. - The company emphasizes creating sustainable value for customers and shareholders as part of its long-term strategy[39]. Cost Management and Employee Insights - The company’s general and administrative expenses decreased by 30.6% to approximately HKD 109,908,000, primarily due to cost control measures[57]. - The total employee cost for the fiscal year was approximately HKD 53,694,000, a decrease of about 24.4% compared to the previous year[65]. - The group employed approximately 127 employees as of December 31, 2023, with 68 being female employees[65]. Governance and Compliance - The internal control assessment for 2023 and 2024 was conducted by a consultant, covering areas such as corporate governance, expense management, and financial controls[81]. - The internal evaluation indicated no significant anomalies or errors in corporate governance, expense management, and financial cycles[86]. - The audit committee, composed of four independent non-executive directors, reviewed the annual financial report and confirmed compliance with relevant financial reporting standards[86]. - The consolidated financial statements for the year ending December 31, 2023, were approved by the auditors and align with the board's approved figures[87]. - The company has adopted a code of conduct for directors regarding securities trading, which meets or exceeds the standards set by the listing rules[83]. - There were no reported violations of the employee trading guidelines during the reporting period[85]. Legal and Regulatory Matters - The group is preparing to appeal a court ruling regarding unauthorized loans and guarantees, with a disputed amount totaling approximately RMB 198,700,000[64]. - The group has not engaged in any derivative activities or used financial instruments to hedge against foreign exchange rate fluctuations as of December 31, 2023[69]. - There were no significant capital commitments or contingent liabilities at the end of the fiscal year[68]. Shareholder Communication - The board of directors did not recommend the payment of a final dividend for the fiscal year[76]. - The group expressed gratitude to shareholders for their support throughout the year[90]. - The annual report for 2023 will be published on the company's and the Hong Kong Stock Exchange's websites[88].

Financial Performance - The interest and financing advisory service revenue for the six months ended June 30, 2023, was HKD 67,694,000, a decrease of 40.6% compared to HKD 113,918,000 for the same period in 2022[5]. - The loss attributable to owners of the company for the period was approximately HKD 117,100,000, representing an increase of 186.8% from HKD 40,833,000 in the previous year[5]. - Basic loss per share for the period was HKD (0.58), compared to HKD (0.20) for the same period last year, reflecting a 190.0% increase in loss per share[5]. - The group reported a loss before tax of HKD 101,688,000 for the six months ended June 30, 2023, compared to a loss of HKD 19,033,000 in 2022[42]. - Total comprehensive loss for the period was HKD 135,328,000, compared to HKD 86,567,000 in the previous year, indicating an increase of 56.4%[43]. - The group reported a pre-tax loss of HKD 117,100,000 for the period, compared to a loss of HKD 40,833,000 for the same period last year, indicating a significant increase in losses[70]. Revenue and Income - Interest and financing advisory service revenue for the six months ended June 30, 2023, was HKD 67,694,000, down from HKD 113,918,000 in the same period of 2022, representing a decrease of 40.6%[42]. - Net interest income and service income for the same period was HKD 19,021,000, a decline of 45.4% from HKD 35,061,000 in 2022[42]. - Other income for the six months ended June 30, 2023, totaled HKD 5,103,000, a decrease of 52.8% from HKD 10,810,000 in 2022[66]. Expenses and Cost Management - General and administrative expenses decreased by 34.3% to approximately HKD 49,152,000, due to strict cost control measures implemented by the company[17]. - Employee costs during the reporting period were approximately HKD 24.6 million, a decrease of about 34.0% compared to the previous year[22]. - The total remuneration for key management personnel decreased from HKD 3,860,000 for the six months ended June 30, 2022, to HKD 2,412,000 for the same period in 2023, representing a reduction of approximately 37.6%[98]. Assets and Liabilities - As of the reporting period end, the company's net current assets and equity attributable to shareholders were approximately HKD 142.8 million and HKD 655.1 million, respectively[19]. - The company's outstanding borrowings and unsecured bonds amounted to HKD 1,218.4 million, a decrease of approximately 11.4% compared to the same period last year[19]. - The group's total assets as of June 30, 2023, were HKD 2,330,547,000, down from HKD 2,644,407,000 at the end of 2022[46]. - The net asset value decreased to HKD 732,340,000 as of June 30, 2023, from HKD 871,062,000 at the end of 2022[46]. - The total borrowings as of June 30, 2023, were HKD 1,149,744,000, down from HKD 1,301,132,000 as of December 31, 2022, indicating a reduction of about 11.6%[88]. Market Conditions and Business Outlook - The company's mortgage loan business in mainland China faced increased competition, leading to a reduction in business scale during the first half of 2023[10]. - The overall liquidity in the banking sector has increased, leading to intensified competition in the mortgage loan industry, particularly in the residential mortgage sector[7]. - The management anticipates that the real estate industry may stabilize in the second half of the year, which could benefit the company's mortgage loan business[12]. - The company is committed to optimizing operational structures and adjusting product policies in response to changing market conditions and competition[12]. - The group anticipates a downward trend in loan amounts and interest rates, impacting future revenue expectations[78]. Shareholder Information - The issued and fully paid ordinary shares remained at 209,286,067 shares with a total value of HKD 2,080,113,000 as of June 30, 2023, unchanged from the previous period[94]. - Major shareholders include Zhang Xiaolin with 115,664,312 shares, representing 55.27% of the issued share capital, and Lu Yun with the same percentage[107]. - The board of directors did not recommend any interim dividend for the reporting period, consistent with the previous period[115]. Governance and Compliance - The company has complied with the corporate governance code, except for the separation of roles between the chairman and the CEO[117]. - The audit committee, consisting of four independent non-executive directors, reviewed the interim results for the six months ended June 30, 2023, and found them to comply with relevant financial reporting standards[122]. - The company has established a code of conduct for directors regarding the trading of the company's securities, which complies with the listing rules[119].

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佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部分內容 而產生或因依賴該等內容而引致之任何損失承擔任何責任。 截至二零二三年六月三十日止六個月 中期業績 財務摘要 未經審核 未經審核 截至 截至 二零二三年 二零二二年 六月三十日 六月三十日 止六個月 止六個月 百分比變動 千港元 千港元 % 利息及融資諮詢服務收入 67,694 113,918 (40.6) ...

Financial Performance - For the fiscal year ended December 31, 2022, the company reported interest and service income of approximately HKD 200.83 million, a decrease of 34.1% from HKD 304.59 million in the previous year[9]. - The company recorded a loss attributable to owners of the company of HKD 52.55 million, a significant improvement of 79.0% compared to a loss of HKD 250.07 million in the prior year[9]. - Basic loss per share improved to HKD 0.26 from HKD 1.24, reflecting a 79.0% reduction in losses[9]. - Other income and gains for the fiscal year amounted to approximately HKD 27,711,000, primarily due to a fair value change gain of HKD 11,079,000 from receivables[21]. - General and administrative expenses decreased by 13.5% to approximately HKD 158,308,000, mainly due to reductions in employee costs and related expenses[23]. - The loss attributable to owners for the year was approximately HKD 52,553,000, a decrease of 79.0% compared to a loss of approximately HKD 250,065,000 in the previous year[24]. - As of the end of the fiscal year, the group's net current assets and equity attributable to owners were approximately HKD 311,117,000 and HKD 789,725,000, respectively[25]. - The group's outstanding borrowings and unsecured bonds amounted to HKD 1,375,165,000, a decrease of approximately 22.9% compared to the previous year[25]. - Total employee costs for the fiscal year were approximately HKD 70,987,000, a decrease of about 16.5% from the previous year[29]. Business Operations and Strategy - The company faced challenges due to COVID-19, which led to strict lockdowns in multiple cities, impacting loan disbursements and overall operations[18]. - The company adopted a conservative approach to new loan issuance, contributing to the decline in revenue[18]. - The company anticipates a recovery in overall business activity and loan demand in 2023 as COVID-19 restrictions are eased and supportive policies are implemented[12]. - The company aims to diversify its business portfolio and explore new opportunities that can create synergies with its core lending operations[12]. - The company is committed to maintaining a competitive advantage and driving sustainable growth through strategic partnerships and market expansion[12]. - The group plans to adopt a prudent approach in business development while strictly controlling operational costs[48]. - The company aims to create sustainable value for customers and shareholders as part of its long-term strategy[48]. Risk Management and Governance - The company has implemented comprehensive reforms in internal control policies, corporate governance measures, and risk management practices to prevent future issues[12]. - The board highlighted the importance of a comprehensive risk management framework to address various market risks, including liquidity and credit risks[70]. - The company has established robust internal controls and clear responsibilities to mitigate operational risks[74]. - The company emphasizes the importance of effective internal reporting mechanisms to manage operational risks[74]. - The management team is committed to regular reviews and updates of risk management policies to align with market conditions[70]. - The company has implemented a risk management and internal control system to manage risks associated with achieving business objectives[181]. - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve strategic goals[181]. Corporate Governance - The company has adopted the corporate governance code as a benchmark for its governance practices and believes it has complied with the code throughout the year, except for a specific provision[125]. - The board consists of seven directors, including one executive director, one non-executive director, and five independent non-executive directors, ensuring compliance with listing rules[131]. - The company has established a mandatory provident fund scheme for employees in accordance with Hong Kong regulations[118]. - The board is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[125]. - The company has a clear division of responsibilities between the chairman and the CEO, ensuring effective governance[135]. - Independent non-executive directors provide independent judgment and ensure high standards of regulatory reporting[141]. - The board regularly reviews the contributions of directors to ensure they dedicate sufficient time to their responsibilities[128]. - The board of directors has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Business Risk Committee to oversee specific aspects of the company's affairs[146]. Shareholder Information - The company did not recommend a final dividend for the fiscal year ending December 31, 2022, consistent with the previous year[78]. - As of December 31, 2022, the company had no distributable reserves available for shareholders, unchanged from the previous year[80]. - The share incentive plan allows for a maximum of 21,464,036 shares to be granted, representing 10% of the issued shares at the time of adoption[85]. - The company’s five largest customers accounted for less than 30% of total revenue during the reporting period[90]. - The board may propose dividends based on the company's financial condition, subject to shareholder approval[200]. Employee and Board Composition - The group employs approximately 146 staff members, with 74 being female employees[29]. - The company’s employee compensation is determined based on qualifications, industry expertise, and performance metrics[88]. - The company aims to maintain a diverse board composition, with at least one female member and one independent non-executive director residing in Hong Kong[164]. - As of December 31, 2022, the board consisted of six male directors and one female director, achieving the diversity goal without setting further quantifiable targets[162]. - The company will consider increasing the proportion of female members in future elections, hiring, and promotions[171]. Audit and Compliance - The independent auditor's report is included in the annual report, detailing their responsibilities regarding the financial statements[188]. - The company reported an auditor's fee of HKD 2,650,000 for audit services and HKD 235,000 for non-audit services, totaling HKD 2,885,000 for the review year[191]. - The board confirmed that there are no significant uncertainties regarding the company's ability to continue as a going concern[187]. - The company has no significant related party transactions that require disclosure under the listing rules[114]. - The company has adopted a shareholder communication policy to ensure effective communication with investors regarding financial performance and strategic developments[199].