Financial Performance - Total revenue decreased by 15.3% to HK$917.4 million for the year ended September 30, 2020, compared to HK$1,082.9 million in 2019[10]. - The loss attributable to owners of the Company was HK$689.7 million, up from HK$258.7 million in 2019, primarily due to impairment allowances and revenue decline[10]. - Impairment allowances increased to approximately HK$1,327.3 million, compared to HK$889.3 million in 2019, reflecting a review of client portfolios amid economic downturn[10]. - Adjusted net profit remained stable at HK$637.6 million, slightly up from HK$630.6 million in 2019, excluding impairment allowances[10]. - Basic loss per share was HK10.23 cents, compared to HK3.84 cents in 2019[10]. - The net loss attributable to shareholders for the year was HK$689.7 million (2019: HK$258.7 million), primarily due to impairment allowances and a decline in total revenue[11]. - Impairment allowances amounted to approximately HK$1,327.3 million (2019: HK$889.3 million), reflecting a review of certain clients' accounts and financial conditions[11]. - Adjusted net profit, excluding impairment allowances, remained stable at HK$637.6 million (2019: HK$630.6 million)[11]. Revenue Breakdown - Financing revenue was HK$779.2 million, down from HK$940.0 million in the previous year[8]. - Brokerage services revenue increased to HK$115.6 million from HK$102.0 million in 2019[8]. - Corporate finance revenue rose to HK$9.1 million, up from HK$6.4 million in 2019[8]. - Placing and underwriting revenue decreased significantly to HK$13.4 million from HK$34.5 million in the previous year[8]. - Revenue from the financing segment was HK$779.2 million (2019: HK$940.0 million), accounting for 84.9% of the group's total revenue[24]. - Revenue from brokerage services increased by 13.3% to HK$115.6 million (2019: HK$102.0 million), representing 12.6% of the group's total revenue[26]. - Revenue from the placing and underwriting segment was HK$13.4 million, a decrease of 61% from HK$34.5 million in 2019, accounting for 1.5% of total revenue[31]. - Revenue from the corporate finance segment increased to HK$9.1 million, up 42% from HK$6.4 million in 2019, representing 1.0% of total revenue[33]. Market Conditions - The Hang Seng Index dropped by 10.1% from 26,092 on September 30, 2019, to 23,459 on September 30, 2020, reflecting bearish market sentiment[15]. - The group adopted a conservative approach by tightening loan approval procedures in response to the challenging business environment[24]. - The Group anticipates a prolonged market recovery due to ongoing economic challenges and instability[38]. - The inclusion of weighted voting rights and secondary listed companies in the Hang Seng Index is expected to enhance the competitiveness of the Hong Kong stock market[39]. - The development of the "Guangdong-Hong Kong-Macao Greater Bay Area" is expected to provide more opportunities for Hong Kong as an international financial hub[39]. Strategic Focus - The Company continues to assess market conditions for potential strategic adjustments and future growth opportunities[10]. - The Group's strategy will focus on mitigating downside risks while seizing opportunities in the current economic climate[40]. - The Group plans to conduct comprehensive assessments of collaterals to minimize default risk and maintain stringent control over operating costs[40]. Assets and Liabilities - As of September 30, 2020, the Group's current assets were HK$9,326.0 million, a slight decrease from HK$9,440.2 million in 2019, while current liabilities rose to HK$4,582.6 million from HK$2,584.4 million[41]. - The total carrying amount of outstanding bonds decreased to approximately HK$1,394.6 million from HK$2,813.5 million in 2019, as the Group repaid part of the bonds during the year[41]. - The Group's bank balances, cash, and pledged bank deposits amounted to HK$852.0 million, down from HK$1,905.5 million in 2019[41]. - As of September 30, 2020, the Group's bank borrowings amounted to HK$2,371.0 million, a significant increase from HK$231.2 million in 2019, with total borrowings (excluding IPO financing) at HK$1,394.6 million, down from HK$3,044.7 million in 2019, resulting in a gearing ratio of 31.5% compared to 59.5% in 2019[44]. - The Group had available unutilized banking facilities of HK$2,440.5 million, indicating sufficient working capital for operations and future development[44]. Staff and Governance - Total staff costs, including directors' remuneration, were approximately HK$62.1 million, a decrease from HK$99.0 million in 2019, with the Group employing 77 account executives and 131 employees as of September 30, 2020[44]. - The Board did not recommend any payment of final dividend for the year ended September 30, 2020, consistent with the previous year where no dividend was paid[44]. - The Group's reserves available for distribution to shareholders as of September 30, 2020, amounted to approximately HK$101.9 million in contributed surplus and HK$164.1 million in retained profits, compared to HK$101.9 million and HK$89.2 million in 2019[69]. - The Company is primarily engaged in financial services, including commercial and personal lending, brokerage services, wealth management, and corporate finance advisory services[65]. - The Group's business review and performance analysis are detailed in the Management Discussion and Analysis section from pages 6 to 11 of the report[65]. Related Party Transactions - The financial services agreement with AY Holdings includes a commission, brokerage, fees, and interest income of HK$374,000 from the Emperor Group[116]. - The financial advisory fee from the listed members of the Emperor Group was HK$2,055,000[116]. - The maximum margin loan amount to the Yeung Family was HK$42,480,000[122]. - The maximum IPO loan amount to the Yeung Family reached HK$199,807,000[122]. - The financial advisory fee from the Yeung Family was HK$800,000[122]. - Transactions under the Emperor Group FSA constitute continuing connected transactions for the company[118]. - The company has complied with the disclosure requirements under Chapter 14A of the Listing Rules regarding related party transactions[124]. - The auditor issued an unqualified letter regarding the Group's non-exempt continuing connected transactions, confirming compliance with the Listing Rules[126]. Corporate Governance - The Company has fully complied with the Corporate Governance Code except for the deviation from code provision A.2.1, which requires separation of the roles of chairman and chief executive officer[139]. - The Board comprised six Directors as of September 30, 2020, including three Executive Directors and three Independent Non-executive Directors[140]. - The independent non-executive directors confirmed that the continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[130]. - The Company plans to re-appoint Messrs. Deloitte Touche Tohmatsu as auditor at the 2021 AGM[137]. - The Group's remuneration package includes basic salaries, discretionary bonuses, and competitive fringe benefits[135]. - The Board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balance of skills and experience relevant to the Group's business management[143]. - The independent non-executive directors (INEDs) are all professionals with recognized expertise in financial, legal, or accounting fields, contributing impartial views and independent judgments[146]. - The management is led by the Executive Committee, which comprises all executive directors, responsible for day-to-day operations and key business decisions[149]. - The Board is responsible for formulating strategic directions and monitoring the financial and management performance of the Group[148]. - The Company has received confirmation of independence from each INED, and they are considered independent based on the annual review conducted by the Nomination Committee[147]. - All directors have participated in continuous professional development, covering topics such as corporate governance, finance, industry-specific knowledge, and regulatory compliance[158]. - The Company has arranged appropriate insurance coverage for legal actions against the directors[159]. - The Board structure is designed to ensure adequate independence and effective oversight of management, with no current plans for changes[144]. - The INEDs serve an initial term of three years, automatically renewed for successive one-year terms, subject to early termination with written notice[146]. - The Company ensures compliance with legal and regulatory requirements, including risk management and corporate governance policies[153]. - The Board has ensured compliance with corporate governance codes, with all directors participating in ongoing professional development[161]. - The attendance of directors at meetings was high, with all executive directors attending 100% of the meetings held[166]. - The Executive Committee is responsible for formulating business policies and managing day-to-day operations, consisting of three executive directors[179]. - The Audit Committee and the majority of the Remuneration and Nomination Committees are composed of Independent Non-Executive Directors (INEDs)[178]. - The company has established procedures for directors to seek independent professional advice when necessary, with costs borne by the company[168]. - Regular board meetings are held approximately quarterly, ensuring adherence to applicable rules and regulations[169]. - The company maintains appropriate insurance arrangements for directors facing potential legal actions[163]. - The Board has reviewed the contributions of each director and is satisfied with their time commitment during the year[168]. - Clear written terms of reference are provided to all members of the Board Committees to facilitate effective management[178]. - The company has implemented a process for handling conflicts of interest, ensuring transparency and compliance with governance standards[172]. - The Audit Committee held three meetings during the year to review the effectiveness of the audit process and the accuracy of the annual consolidated financial statements for the financial year ended 30 September 2019[182]. - The Remuneration Committee reviewed the current remuneration structure of Executive Directors and senior management, making recommendations for specific packages[188]. - The Nomination Committee reviewed the structure, size, composition, and diversity of the Board, and made recommendations for the re-election of Directors at the 2020 AGM[196]. - The Audit Committee recommended the re-appointment of the external auditor at the 2020 annual general meeting[185]. - The Remuneration Committee held two meetings during the year to discuss Directors' fees and remuneration packages[189]. - The Audit Committee performed an annual review of non-exempt continuing connected transactions of the Group for the previous year[183]. - The Executive Committee is responsible for developing business policies and making decisions related to the Group's management and daily operations[179]. - The Audit Committee reviewed the effectiveness of the risk management and internal control systems during the previous year[185]. - The Nomination Committee assessed the independence of INEDs and reviewed the time commitment of each Director[196]. - The Remuneration Committee made recommendations to the Board regarding the remuneration of INEDs[188]. - The Board Diversity Policy aims to achieve a broad range of diversity on the Board, including gender, age, cultural and educational background, and professional experience[197]. - The Nomination Policy assists the Nomination Committee in identifying suitable candidates for directorship based on the Board Diversity Policy[198]. - The Nomination Committee reviewed the structure, number, composition, and diversity of the Board during the year[199]. - The Committee also assessed the independence of independent non-executive directors and their time commitment to board responsibilities[199]. - The Board Diversity Policy emphasizes the importance of diversity in complementing the Company's corporate strategy[200].

Financial Performance - Total revenue for the six months ended March 31, 2020, decreased to HKD 494,453,000, down 16.2% from HKD 590,427,000 in 2019[4]. - Net loss for the period was HKD 268,067,000, compared to a net profit of HKD 37,638,000 in 2019, primarily due to impairment provisions for margin loans and advances[4][7]. - Adjusted net profit decreased by 9.1% to HKD 324,869,000, down from HKD 357,365,000 in 2019[4][7]. - Basic loss per share was HKD (3.98), compared to earnings of HKD 0.55 per share in 2019[4][7]. - The company reported a loss before tax of HKD 250,891,000 compared to a profit of HKD 60,054,000 in the same period last year[38]. - The company’s basic and diluted earnings per share for the period were a loss of HKD 268,067,000, compared to a profit of HKD 37,638,000 in the previous year[105]. - The company did not declare any interim dividend for the fiscal year ending September 30, 2020, consistent with the previous year[38]. Revenue Breakdown - The loan segment generated revenue of HKD 427,550,000, accounting for 86.5% of total revenue, down from 88.0% in 2019[14]. - Brokerage service revenue increased by 15.7% to HKD 58,819,000, representing 11.9% of total revenue, up from 8.6% in 2019[14]. - The revenue from the placement and underwriting division was HKD 3,100,000, accounting for 0.6% of the total revenue, a decrease from 2.9% in 2019[15]. - The corporate finance division's revenue increased to HKD 4,900,000, representing 1.0% of total revenue, up from 0.5% in 2019[18]. Assets and Liabilities - As of March 31, 2020, the group had total current assets of HKD 8,282,800,000, down from HKD 9,440,200,000 as of September 30, 2019[8]. - Total assets decreased to HKD 8,282,754,000 from HKD 9,440,187,000, reflecting a decline of 12.3%[41]. - The total liabilities decreased to HKD 2,473,870,000 from HKD 2,584,398,000, a reduction of 4.3%[46]. - Cash and cash equivalents at the end of the period were HKD 1,291,320,000, down from HKD 1,505,264,000 in 2019[54]. Impairment and Provisions - The company recorded a significant increase in impairment provisions, totaling HKD 592,936,000 compared to HKD 319,727,000 in the prior year[38]. - The total impairment provision for receivables was HKD 492,292,000, significantly higher than HKD 263,601,000 for the same period in 2019, marking an increase of approximately 87%[102]. - The impairment provision for loans increased to HKD 3,536,330,000 from HKD 3,487,726,000, reflecting an increase of approximately 1.4%[126]. - The impairment provision for the period was HKD 910,864,000, compared to HKD 584,325,000 as of September 30, 2019, indicating a significant increase of 55.6%[155]. Credit Risk Management - The credit risk management process includes identifying, assessing, and monitoring risks associated with lending activities[22]. - The company maintains a credit policy to ensure all loans are subject to credit risk assessment and ongoing monitoring[126]. - The company’s credit risk management includes regular reviews of credit limits for individual clients, with any excess requiring higher-level management approval[155]. - The company has established policies to monitor credit risk concentration and conducts regular stress tests to evaluate credit risk and capital adequacy[24]. Operational Changes and Future Outlook - The company anticipates a downward trend in the overall economy and financial markets due to the public health crisis, which may weaken business prospects and liquidity[18]. - The company plans to implement stricter loan approval processes and comprehensive collateral assessments to reduce default risks and enhance risk management[18]. - The company is prepared to seize development opportunities while maintaining stable business growth amid regional and national financial support measures[20]. - The company plans to continue expanding its brokerage services and enhance its wealth management offerings in the upcoming quarters[96]. Employee and Management Information - Employee costs amounted to HKD 31,941,000, down 39.3% from HKD 52,666,000 in the previous year[38]. - The number of employees decreased to 119 from 177 in the previous year, indicating a reduction in workforce[38]. - The total remuneration paid to key management personnel was HKD 3,821,000 for the period, a decrease of 62.4% from HKD 10,173,000 in the previous year[168]. - The company’s management fees paid to related companies amounted to HKD 5,586,000 for the period, up from HKD 3,236,000 in the previous year, reflecting a rise of 73%[165]. Compliance and Governance - The company has complied with all provisions of the Corporate Governance Code during the reporting period, except for the separation of the roles of Chairman and CEO[177]. - The company’s financial statements have not been audited or reviewed by its auditors but have been reviewed by the audit committee[181]. - The company encourages shareholders to receive electronic versions of the interim report to support environmental protection[183].

Financial Performance - Total revenue for the year ended September 30, 2019, was HK$1,082,854,000, a decrease of 17.6% from HK$1,314,270,000 in 2018[9] - Financing revenue decreased to HK$940,016,000 from HK$1,085,879,000, representing a decline of 13.4%[9] - Brokerage revenue fell to HK$102,020,000, down 23.9% from HK$133,844,000 in the previous year[9] - The net loss reported was HK$258,706,000, compared to a profit of HK$549,195,000 in 2018[9] - Adjusted net profit was HK$630,578,000, down 16.5% from HK$754,773,000 in the prior year[9] - Basic loss per share was HK(3.84), compared to earnings of HK8.15 per share in 2018[9] - The loss attributable to owners of the Company was HK$258.7 million, compared to a profit of HK$549.2 million in 2018, indicating a significant downturn in financial performance[21] - Adjusted profit, excluding impairment allowances, decreased by 16.5% to HK$630.6 million from HK$754.8 million in 2018[21] - Basic loss per share was HK3.84 cents, a decline from basic earnings per share of HK8.15 cents in the previous year[21] Operational Overview - The company operates 4 branches in Hong Kong and 3 liaison offices in mainland China, indicating a stable operational footprint[12] - The Group's revenue decreased to HK$1,082.9 million for the year ended September 30, 2019, down from HK$1,314.3 million in 2018, reflecting a decline of approximately 17.6%[21] - The Group has diversified its income streams, transitioning to an interest income-based financial institution over the past decade[12] - The Group operates 4 branches in Hong Kong and 3 liaison offices in mainland China, enhancing its market presence[31] Market Conditions - The year faced challenges due to the US-China trade war, Brexit uncertainties, and emerging market currency crises, impacting investor sentiment[16] - The Group has implemented stricter scrutiny of loan approval procedures and adjusted interest charges and loan-to-value ratios in response to market conditions[27] - The local government's policy to raise the mortgage cap for first-time buyers is expected to stimulate property transactions, prompting the Group to allocate more resources to this market[39] - The Group plans to adopt a prudent approach and strengthen credit control measures to minimize potential risks amid increasing demand for property mortgages[39] Financial Position - As of September 30, 2019, the Group's current assets were HK$9,440.2 million, down from HK$10,470.3 million in 2018, while current liabilities decreased to HK$2,584.4 million from HK$3,524.6 million[21] - The Group's bank balances, cash, and pledged bank deposits totaled HK$1,905.5 million as of September 30, 2019, an increase from HK$1,043.0 million in 2018[21] - The Group's total borrowings amounted to HK$3,044.7 million, with a gearing ratio of 59.5% as of September 30, 2019[23] - Short-term bank borrowings decreased to HK$231.2 million as of September 30, 2019, down from HK$460.2 million in the previous year[23] - The Group has sufficient working capital for its operation and future development, with available unutilised banking facilities of HK$2,722.8 million[23] Revenue Breakdown - Revenue from the financing segment decreased by 13.4% to HK$940.0 million in the year, accounting for 86.8% of total revenue[26] - Revenue from the brokerage segment decreased to HK$102.0 million, representing 9.4% of total revenue, down from HK$133.8 million in the previous year[31] - Revenue from the placing and underwriting segment was HK$34.5 million, accounting for 3.2% of total revenue, a decrease from HK$75.9 million in the previous year[34] - Revenue from the corporate finance segment generated HK$6,365,000, a significant drop from HK$18,627,000 in the previous year, reflecting market conditions[9] Shareholder Information - The Group did not pay any interim dividend for the Year, compared to HK$148.97 million (HK2.21 cents per share) in 2018[62] - The Board did not recommend any final dividend for the Year, whereas in 2018, it was HK$43.1 million (HK0.64 cent per share)[62] - The Company's reserves available for distribution to Shareholders as of 30 September 2019 amounted to approximately HK$101.9 million in contributed surplus and HK$89.2 million in retained profits, compared to HK$101.9 million and HK$50.3 million in 2018[65] - The Group's five largest customers accounted for 20% of total turnover in the Year, down from 24% in 2018, with the largest customer contributing 6% of total turnover, down from 10% in 2018[78] Corporate Governance - The Company fully complied with the Corporate Governance Code except for the deviation from code provision A.2.1, which requires the roles of chairman and chief executive officer to be separate[158] - The Board comprised six Directors as of September 30, 2019, including three Executive Directors and three Independent Non-Executive Directors[159] - The emoluments of the Directors are determined by the Board based on a written remuneration policy aligned with business strategy and shareholder interests[145] - The Company has adopted various policies to ensure compliance with the Corporate Governance Code[158] - All Independent Non-executive Directors (INEDs) have confirmed their independence, and their terms are subject to re-election provisions[165] Director and Executive Information - The remuneration package for Directors includes basic salaries, Directors' fees, pension contributions, discretionary bonuses, and competitive fringe benefits[150] - The Managing Director provides strong leadership while leading the management in effective planning and execution of long-term business strategies[160] - The Company is led by a Board responsible for strategic direction and monitoring financial performance to promote success in the interest of shareholders[165] - The Executive Committee, comprising all Executive Directors, manages day-to-day operations and has delegated powers except for specific reserved matters[165] Compliance and Risk Management - The Company ensures compliance with legal and regulatory requirements through approved policies and practices[167] - The Board is responsible for approving major changes and financial reporting as per Listing Rules[167] - The Company Secretary ensures that Board procedures and applicable rules are followed, with meeting notices sent at least 14 days in advance[176] - The Company has established clear written terms of reference for all Board Committees to assist in effective management[183]

Financial Performance - Total revenue for the six months ended March 31, 2019, decreased by 11.6% to HKD 590,427,000 compared to HKD 668,068,000 in 2018[10] - Net profit attributable to shareholders for the period fell to HKD 37,638,000, a significant decrease from HKD 371,408,000 in 2018[10] - Adjusted net profit, excluding impairment provisions, slightly decreased by 4.1% to HKD 357,365,000 from HKD 372,516,000 in the previous year[6] - Basic earnings per share dropped to HKD 0.55 from HKD 5.51 in 2018[6] - The company reported a pre-tax profit of HKD 60,054,000, significantly down from HKD 446,577,000, a decline of 86.5%[49] - The net profit attributable to the company's owners was HKD 37,638,000, compared to HKD 371,408,000, a decrease of 89.9%[49] - Basic and diluted earnings per share fell to HKD 0.55 from HKD 5.51, a drop of 90%[49] - The company reported a pre-tax profit of HKD 23,271,000 for the period, compared to HKD 75,169,000 in the previous year, reflecting a significant decline of 69.0%[124] Revenue Breakdown - The loan division generated stable revenue of HKD 519.4 million, accounting for 88.0% of total group revenue, compared to 78.1% in 2018[22] - Brokerage service revenue decreased to HKD 50.8 million, representing 8.6% of total revenue, down from 10.3% in 2018[26] - The placement and underwriting division recorded revenue of HKD 17.1 million, which is 2.9% of total revenue, a decline from 9.1% in 2018[30] - The corporate finance division earned HKD 3.1 million, making up 0.5% of total revenue, down from 2.5% in 2018[31] - For the six months ending March 31, 2019, total revenue was HKD 590,427,000, with external customer revenue from loans at HKD 519,426,000 and brokerage services at HKD 50,802,000[114] Financial Position - The group’s total borrowings increased to HKD 3,709,600,000, up from HKD 3,245,300,000, resulting in a debt-to-equity ratio of 68.5%[16] - As of March 31, 2019, the group had cash and bank deposits totaling HKD 1,665,300,000, an increase from HKD 1,043,000,000 as of September 30, 2018[11] - Total assets as of March 31, 2019, were HKD 10,244,694,000, slightly down from HKD 10,470,348,000[52] - The company's non-current assets increased to HKD 567,580,000 from HKD 301,319,000, a rise of 88.5%[52] - Current liabilities decreased to HKD 3,825,079,000 from HKD 3,542,615,000, an increase of 8%[56] - The total equity as of March 31, 2019, was HKD 5,412,480,000, slightly down from HKD 5,431,871,000 as of October 1, 2018[58] Cash Flow - The net cash generated from operating activities for the six months ended March 31, 2019, was HKD 284,544,000, compared to a net cash outflow of HKD 1,144,343,000 in the same period of 2018[61] - The net increase in cash and cash equivalents for the six months ended March 31, 2019, was HKD 622,223,000, up from HKD 182,589,000 in the previous year[61] - As of March 31, 2019, the total cash and cash equivalents amounted to HKD 1,505,264,000, compared to HKD 696,718,000 at the end of March 31, 2018[61] Impairment and Credit Risk - The company has identified significant credit risk and is enhancing its credit control measures to mitigate potential risks[22] - The impairment provision amounted to approximately HKD 98,333,000, a significant increase from HKD 33,634,000 as of September 30, 2018[143] - The total impairment provision for loans as of March 31, 2019, amounted to approximately HKD 451,878,000, with legal actions initiated to recover these loans[162] - The company maintains a credit policy to mitigate credit risk, ensuring all loans and advances are subject to credit risk assessment and ongoing monitoring[143] Market Environment - The overall market environment remains challenging due to rising global political risks and economic slowdown, impacting financial markets negatively[21] - The external environment is expected to remain challenging, with cautious market sentiment due to unresolved trade and political tensions[32] - The importance of the mainland Chinese market is increasing, with global investors raising their investment in Chinese companies[32] Corporate Governance and Management - The company has complied with all provisions of the Corporate Governance Code during the reporting period, except for the separation of the roles of Chairman and CEO[187] - The audit committee reviewed the interim report, which was not audited or reviewed by the company's auditors[192] - The total remuneration paid to key management personnel for the six months ended March 31, 2019, was HKD 10,173,000, compared to HKD 24,591,000 for the same period in 2018, reflecting a decrease of approximately 58.7%[171]