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]