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。 Pinestone Capital Limited 鼎石資本有限公司 （於開曼群島註冊成立之有限公司） （股份代號：804） 有關截至2022年12月31日止年度之 年度報告之補充公告 茲提述鼎石資本有限公司（「本公司」，連同其附屬公司統稱「本集團」）日期為2023年3月 24日截至2022年12月31日止年度（「2022財政年度」）之年度報告（「年度報告」）。除另有 界定者外，本公告所用詞彙與年度報告所界定者具有相同涵義。 董事會謹此補充以下有關(i)2022年11月8日配售股份（「配售事項」）所得款項用途；及(ii) 放債業務（「放債業務」）之額外資料。 ...

Financial Performance - For the six months ended June 30, 2023, the company recorded a net profit of approximately HKD 300,000, a decrease of about HKD 1,200,000 or approximately 80% compared to HKD 1,500,000 for the same period in 2022[7]. - Total revenue for the six months ended June 30, 2023, was HKD 9,480,000, down from HKD 10,685,000 in the same period of 2022, representing a decrease of approximately 11.2%[30]. - The group reported a profit attributable to owners of the company of HKD 340 for the six months ended June 30, 2023, down from HKD 1,487 in the same period of 2022, indicating a decline of approximately 77%[75]. - The group's total revenue for the six months ended June 30, 2023, was approximately HKD 9,500,000, a decrease of about 11% from HKD 10,700,000 in the same period of 2022[174]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were HKD 0.13 cents, down from HKD 0.65 cents (restated) for the same period in 2022[50]. Revenue Sources - The company's revenue primarily comes from (i) commission income from securities brokerage services; (ii) interest income from securities lending and other lending services; and (iii) placement and underwriting services[196]. - Revenue from securities brokerage service commissions increased to HKD 169,000 in 2023 from HKD 53,000 in 2022, reflecting a growth of 218%[86]. - Interest income from securities lending services decreased by approximately HKD 1,300,000 to about HKD 9,500,000, a decline of about 12% from HKD 10,600,000 in the previous year[28]. - Interest income from margin financing services decreased to HKD 4,296,000 in 2023 from HKD 7,004,000 in 2022, a decline of approximately 39%[86]. - Lending service income increased by approximately 39% to about HKD 5,000,000 for the six months ended June 30, 2023, compared to HKD 3,600,000 in the same period of 2022[148]. Expenses and Costs - Operating expenses for the six months ended June 30, 2023, totaled approximately HKD 8,400,000, a decrease from HKD 8,800,000 in the same period of 2022[5]. - Employee benefit expenses increased to HKD 5,530,000 for the six months ended June 30, 2023, compared to HKD 4,903,000 in the same period of 2022[30]. - The income tax expense for the six months ended June 30, 2023, was approximately HKD 700,000, compared to HKD 400,000 for the same period in 2022[199]. Assets and Liabilities - The company maintained a strong cash and bank balance of approximately HKD 40,400,000 as of June 30, 2023, compared to HKD 30,100,000 as of December 31, 2022[10]. - The total assets less current liabilities amounted to HKD 164,941 as of June 30, 2023, slightly down from HKD 165,099 as of December 31, 2022[52]. - Current liabilities increased significantly to HKD 31,980 as of June 30, 2023, from HKD 4,843 as of December 31, 2022[52]. - The company's equity increased to HKD 164,816 as of June 30, 2023, compared to HKD 164,476 as of December 31, 2022[32]. - The group's trade receivables from securities trading and margin financing increased to HKD 92,994,000 in 2023 from HKD 90,802,000 in 2022, reflecting a growth of approximately 2.6%[99]. Dividends and Shareholder Returns - The company did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[29]. - The group did not recommend any interim dividend for the six months ended June 30, 2023, consistent with no dividend declared for the same period in 2022[74]. Market Conditions - The average daily turnover of the Hong Kong stock market decreased by 16% to HKD 115,500,000,000 in the first half of 2023, down from HKD 138,300,000,000 in the same period of 2022[145]. - The Hang Seng Index fell by approximately 14% from 21,859 points on June 30, 2022, to 18,916 points on June 30, 2023[145]. - Hong Kong's GDP grew by 1.5% in Q2 2023 compared to the same period last year, but decreased by 1.3% between Q1 and Q2 2023[145]. Strategic Initiatives - The company will consider other financing activities when appropriate opportunities arise[11]. - The group plans to continue expanding its customer base and seek strategic business opportunities for sustainable growth in the financial market[172]. - The company has a share option scheme aimed at incentivizing eligible participants and attracting talent for long-term growth, effective since May 22, 2015[191]. Compliance and Governance - The company acknowledges compliance with trading regulations during the reporting period, with no non-compliance issues reported[193]. - The group has not incurred any significant capital commitments as of June 30, 2023, consistent with the previous year[114]. - The group has no significant contingent liabilities as of June 30, 2023, maintaining the same status as the previous year[140].

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。 Pinestone Capital Limited 鼎石資本有限公司 （於開曼群島註冊成立之有限公司） （股份代號：804） 截至2023年6月30日止六個月之 未經審核中期業績公告 財務摘要 • 截至2023年6月30日止六個月，本集團錄得未經審核收益約9,500,000港元， 較截至2022年6月30日止六個月約10,700,000港元減少約1,200,000港元或約 11%。 • 截至2023年6月30日止六個月，本集團錄得本公司擁有人應佔未經審核溢 利約300,000港元，較2022年同期減少約1,200,000港元或約80%（2022年6月 30日：1,500,000港元）。有關跌幅乃主要由於證券抵押借貸服務的收益減少 約1,300,000港元（截至2022年6月止六個月：10,600,000港元），部分被證券經 紀服務所得佣金收入增加約100,000港元（截至2022年6月止六個月：53,00 ...

Employee Turnover and Remuneration - The group recorded an employee turnover rate of 38% in 2022, with 5 employees leaving and 9 new hires, resulting in a total of 17 employees by December 31, 2022, compared to 13 in 2021[12] - The group’s remuneration policy aligns with current market practices, and employee benefits include discretionary bonuses and medical insurance[12] - Employee benefit expenses increased by about 9% to approximately HKD 10.1 million in 2022, compared to HKD 9.3 million in 2021, accounting for about 14% of total expenses[181] Financial Performance - For the fiscal year ending December 31, 2022, the company reported a net loss of HKD 41.5 million, compared to a net loss of HKD 4.9 million for the fiscal year ending December 31, 2021, representing an increase in loss of approximately 747%[143] - The company's pre-tax loss increased to HKD 48.3 million for the fiscal year ending December 31, 2022, compared to a pre-tax loss of approximately HKD 5.1 million for the previous year, marking a significant deterioration in financial performance[143] - The total revenue for the year ended December 31, 2022, was approximately HKD 19,500,000, a decrease of about 22% from approximately HKD 25,000,000 in 2021[165] - The total trading value for the securities brokerage services decreased from HKD 247.6 million in 2021 to HKD 89.7 million in 2022, indicating a decline in market activity[146] - Commission income from securities brokerage services fell from HKD 500,000 for the fiscal year ending December 31, 2021, to HKD 200,000 for the fiscal year ending December 31, 2022, a decrease of 60%[146] Shareholder Information and Dividends - The company did not recommend the payment of a final dividend for the fiscal year ending December 31, 2022, consistent with the previous year[52] - The total dividends paid by the company for the year ended December 31, 2022, amounted to zero, consistent with the previous year[103] - The company will evaluate its dividend payments annually based on its financial condition, current economic environment, and business performance[82] - Ultimate Vantage holds a direct beneficial ownership of 64,557,500 shares, representing approximately 23.85% of the company's issued share capital[64] Corporate Governance - The board of directors has established a nomination committee to review the structure, size, and diversity of the board, consisting of four independent non-executive directors[19] - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[61] - The board of directors has received annual confirmations of independence from all independent non-executive directors[100] - The company confirmed compliance with the corporate governance code as per the listing rules[94] Risk Management and Compliance - The company is committed to maintaining compliance with applicable laws and regulations through appropriate internal controls[2] - The company has adopted high ethical standards in its operations, including measures to prevent money laundering and combat bribery[25] - The company was affected by ongoing COVID-19 disruptions, impacting global economic recovery, but maintained stability through effective risk management[68] - The company has committed to implementing additional internal environmental, social, and governance (ESG) controls and adopting risk management measures to reduce its carbon footprint in the future[113] Lending Services - The company has expanded its lending services beyond securities collateral lending to include other secured lending services in 2022, indicating a strategic shift in service offerings[142] - The company offers margin financing services with interest rates ranging from approximately 8% to 24%[148] - The interest income from lending services for 2022 was approximately HKD 7,300,000, a decrease of about 14% compared to HKD 8,500,000 in 2021[150] - The company successfully issued two large corporate loans in September and October 2022, totaling approximately HKD 20,000,000 and HKD 18,000,000, with an annual interest rate of 15.0% and a borrowing period of 12 months[150] Asset and Liability Management - The total assets as of December 31, 2022, were approximately HKD 169,942,000, a decrease of about 15% from HKD 199,300,000 in 2021[165] - The total outstanding loans as of December 31, 2022, were approximately HKD 90.8 million, a decrease of about 10% from approximately HKD 100.7 million as of December 31, 2021[192] - Trade receivables decreased by approximately 42% to HKD 53.2 million as of December 31, 2022, from approximately HKD 91 million as of December 31, 2021[179] - The net asset value decreased by approximately 14% to HKD 164.5 million as of December 31, 2022, from HKD 191.7 million in 2021[179] Share Issuance and Capital Structure - The company raised approximately HKD 14,290,000 by issuing 45,118,900 new shares at a placement price of HKD 0.32 per share on November 8, 2022[76] - The company successfully placed 45,118,900 new shares at a price of HKD 0.32 per share, representing approximately 16.67% of the enlarged issued share capital post-placement, raising a total of approximately HKD 14,440,000[200] - The net proceeds from the placement, after deducting commissions and related expenses, amounted to approximately HKD 14,220,000, which the company intends to use for expanding its existing business[200] - The company underwent a share consolidation of 20-for-1 on October 21, 2022, to comply with trading regulations and reduce overall transaction costs[76] Market Conditions - The Hang Seng Index fell approximately 42% from around 25,050 points in February 2022 to about 14,597 points in October 2022, impacting investor sentiment[168] - The company did not record any revenue from placement and underwriting services in 2022, while it recorded approximately HKD 83,000 in 2021[165]

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。 Pinestone Capital Limited 鼎石資本有限公司 （於開曼群島註冊成立之有限公司） （股份代號：804） 截至2022年12月31日止年度之 全年業績公告 財務摘要 • 截至2022年12月31日止年度，本集團的收益合共約為19,500,000港元，較2021 年約25,000,000港元減少約22%。該減少乃由於提供的多項服務所得收入減 少。2022年證券經紀服務所得之佣金收入減少至200,000港元，而於2021年 12月31日則為500,000港元。證券抵押借貸服務所得收入減少至19,200,000 港元，較2021年約24,200,000港元減少約20%。本集團於配售及包銷服務並 無錄得收入，而於2021年則錄得收入約83,000港元。 • 截至2022年12月31日止年度，除所得稅前虧損增加至48,300,000港元，而於 2021年則錄得除所得稅前虧損約5,100,000港 ...

Lending Business Performance - The group's lending business generated approximately HKD 8.5 million, accounting for about 34.0% of total revenue of approximately HKD 25.0 million for the year ended December 31, 2021[38]. - The group focuses on lending to individual and corporate clients, generating interest income as a key revenue source[52]. - As of December 31, 2021, the group had a total of 6 clients with outstanding loan balances[53]. Client Collateral Information - As of December 31, 2021, the largest client held collateral valued at approximately HKD 43 million, with an outstanding balance of approximately HKD 14 million[43]. - The third largest client had collateral of approximately HKD 40 million and an outstanding balance of approximately HKD 18 million as of December 31, 2021[44]. - The fifth largest client held collateral of approximately HKD 200,000 with an outstanding balance of approximately HKD 100,000 as of December 31, 2021[46]. - The sixth largest client had collateral valued at approximately HKD 5.6 million and an outstanding balance of approximately HKD 5.4 million as of December 31, 2021[50]. - The total collateral value across all clients is approximately HKD 68 million, representing 100% of the total[40]. Credit Policy and Operational Strategy - The group’s credit policy includes thorough due diligence and approval by a credit committee for loan applications[51]. - The internal control procedures for loan recoverability include various steps such as margin calls and legal actions if necessary[55]. - The group’s operational strategy focuses on enhancing client relationships and improving the quality of collateral[51]. Business Expansion Plans - The group’s securities lending business is categorized into lending and margin financing services[38]. - The group aims to expand its customized financial services, including securities brokerage and underwriting services[38].

Financial Performance - For the six months ended June 30, 2022, the group recorded unaudited revenue of approximately HKD 10,700,000, a decrease of about HKD 2,100,000 or approximately 16% compared to HKD 12,800,000 for the same period in 2021[7]. - The unaudited profit attributable to owners of the company for the six months ended June 30, 2022, was approximately HKD 1,500,000, a decrease of about HKD 3,100,000 or approximately 67% compared to HKD 4,600,000 in 2021[7]. - Basic and diluted earnings per share for the six months ended June 30, 2022, were HKD 0.03, down from HKD 0.10 for the same period in 2021[7]. - The total comprehensive income for the six months ended June 30, 2022, was HKD 1,487,000, a decrease from HKD 4,632,000 for the same period in 2021[18]. - The company reported a total revenue of HKD 34,135,000 for the six months ended June 30, 2022, compared to HKD 42,213,000 for the same period in 2021, showing a decline in revenue[18]. - The group reported a profit attributable to owners of the company of HKD 1,487,000 for the first half of 2022, a decrease of 67.9% from HKD 4,632,000 in the same period of 2021[58]. - The group incurred a tax expense of HKD 425,000 for the first half of 2022, down 62.7% from HKD 1,140,000 in the same period of 2021[54]. - The group reported interest income from securities lending services of HKD 10,631,000, a decrease of 14.3% from HKD 12,405,000 in the first half of 2021[42]. - Commission income from securities brokerage services for the six months ended June 30, 2022, was approximately HKD 53,000, down from approximately HKD 300,000 for the same period in 2021, representing a decrease of about 82%[87][98]. Assets and Liabilities - Total assets less current liabilities as of June 30, 2022, amounted to HKD 194,319,000, compared to HKD 193,310,000 as of December 31, 2021[12]. - The group’s total equity as of June 30, 2022, was HKD 193,210,000, compared to HKD 191,723,000 as of December 31, 2021[14]. - The company’s total assets as of June 30, 2022, were HKD 193,210,000, down from HKD 201,288,000 as of June 30, 2021[18]. - As of June 30, 2022, trade receivables from margin clients decreased to HKD 76,749,000 from HKD 100,732,000 as of December 31, 2021, representing a decline of approximately 23.8%[62]. - Trade receivables from clearing houses dropped to HKD 104,000 from HKD 245,000, a decrease of about 57.6%[62]. - Total trade receivables, after deducting loss provisions, amounted to HKD 66,883,000, down from HKD 91,007,000, reflecting a reduction of approximately 26.4%[62]. - Trade payables to cash clients increased to HKD 1,188,000 from HKD 639,000, marking an increase of about 85.9%[68]. - Trade payables to margin clients rose slightly to HKD 2,280,000 from HKD 2,212,000, an increase of approximately 3.1%[68]. Cash Flow - For the six months ended June 30, 2022, the net cash generated from operating activities was HKD 23,033,000, compared to a net cash used of HKD 24,978,000 for the same period in 2021, indicating a significant improvement[20]. - As of June 30, 2022, cash and cash equivalents increased to HKD 68,107,000 from HKD 40,818,000 at the end of June 2021, reflecting a positive cash flow trend[20]. - The financing activities used cash of HKD 506,000 in the first half of 2022, a decrease from HKD 1,072,000 used in the same period of 2021[20]. - The company’s cash and bank balances at the end of the reporting period were HKD 68,107,000, compared to HKD 45,580,000 at the beginning of the period[20]. Operating Expenses - Other operating expenses increased by approximately HKD 1,300,000 or about 65% compared to the same period in 2021[7]. - The company’s operating loss for the six months ended June 30, 2022, was HKD 4,866,000, consistent with the previous year[18]. - The group’s finance costs for lease liabilities increased to HKD 49,000 in the first half of 2022, up 75% from HKD 28,000 in the same period of 2021[52]. - The group reported interest income from securities margin financing services decreased by approximately 10% to about HKD 7,000,000 for the six months ended June 30, 2022, compared to approximately HKD 7,800,000 for the same period in 2021[89]. Dividends and Shareholder Information - The group did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[8]. - The group did not declare any interim dividend for the six months ended June 30, 2022, consistent with the previous year[55]. - The company has not made any share buybacks during the six months ended June 30, 2022, maintaining the number of issued ordinary shares at 4,511,890,000[72]. - Major shareholders hold approximately 34.8% and 17.8% of the issued share capital, with 1,572,000,000 and 802,000,000 shares respectively[135]. Corporate Governance and Compliance - The group has complied with all corporate governance codes as per the listing rules during the review period[144]. - The audit committee consists of three independent non-executive directors, including two practicing accountants, ensuring compliance with applicable accounting standards and regulations[148]. - The board of directors includes two executive directors and three independent non-executive directors, reflecting a balanced governance structure[149]. Market Conditions and Economic Environment - The overall economic environment has been negatively impacted by COVID-19, geopolitical tensions, and rising interest rates, affecting investor sentiment and capital markets[86]. - The Hang Seng Index decreased by approximately 7% from January 3, 2022, closing at 21,859 points on June 30, 2022, down from 23,510 points[86]. Employee Information - The group employed a total of 13 employees as of June 30, 2022, compared to 12 employees in the previous year[140].

Financial Performance - The company's revenue for 2021 was HKD 33 million, a 100% increase from HKD 16.5 million in 2013[12]. - Net profit for 2021 reached HKD 21.2 million, representing a 126% increase from HKD 9.4 million in 2013[12]. - Total revenue for the year ended December 31, 2021, was approximately HKD 25 million, a decrease of about 21% compared to HKD 31.8 million in 2020[23]. - The net loss for the year ended December 31, 2021, was HKD 4.9 million, a significant improvement from a net loss of HKD 18.8 million in 2020[24]. - The basic loss per share for the year ended December 31, 2021, was HKD 0.11, compared to a loss of HKD 0.42 per share in 2020[26]. - The company did not recommend the payment of a final dividend for the year ended December 31, 2021[27]. - The income tax credit for 2021 was approximately HKD 173,000, a decrease from HKD 483,000 in 2020, consistent with the increase in adjusted losses under Hong Kong profits tax[84]. - The company has a distributable reserve of approximately HKD 153.5 million as of December 31, 2021[167]. - The total amount of dividends paid for the year ended December 31, 2021, was zero, as it was in 2020[195]. Market Conditions - As of December 31, 2021, the Hang Seng Index recorded a year-on-year decline of 3,841 points or approximately 14%, closing at 23,397 points[7]. - The number of IPOs for small-cap stocks significantly decreased in 2021, with only one new listing on the GEM[7]. Business Strategy - The company maintains a prudent approach in its overall strategy to navigate uncertainties in the market[8]. - The company aims to consolidate its market position and expand its business scope for long-term development[8]. - The company has been preparing for future opportunities while maintaining a stable business development amidst the ongoing pandemic[8]. - The company maintains a cautious approach in its overall strategy due to ongoing economic uncertainties and geopolitical tensions, while preparing for future opportunities[100]. Operational Changes - The company has relocated its headquarters to 26 Harbour Road, Wanchai, Hong Kong[18]. - The company successfully transitioned its shares to the main board of the Stock Exchange in June 2017[14]. - The company underwent a restructuring in 2015 to prepare for its shares to be listed on the GEM of the Hong Kong Stock Exchange[158]. Revenue Sources - The company primarily generates revenue from brokerage service commissions, interest from securities margin financing, and commissions from placement and underwriting services[157]. - Commission income from securities brokerage services decreased to HKD 500,000 in 2021 from HKD 1.4 million in 2020[23]. - Revenue from placement and underwriting services decreased to approximately HKD 83,000 in 2021 from HKD 6.8 million in 2020[36]. - Interest income from securities lending services increased by approximately 3% to HKD 24.2 million in 2021, compared to HKD 23.6 million in 2020[31]. Credit Risk Management - The company has established a credit committee to oversee all credit-related matters, including the approval and monitoring of credit policies and loan portfolios[50]. - As of December 31, 2021, the company confirmed strict compliance with its credit policies without any enhancements[51]. - The expected credit loss assessment model considers factors such as default probability, loss given default, and default risk[51]. - The company categorizes default risk into three stages, with specific indicators for significant increases in credit risk, such as collateral ratios exceeding 60% or loan-to-margin ratios above 150%[56]. - Management evaluates default probabilities based on external credit rating agency studies and industry trends, adjusting for forward-looking economic data[59]. - The company applies a general method to measure expected credit losses for both margin clients and loans, with a focus on collateral value for assessing default likelihood[60]. - The company has rejected the assumption that credit risk significantly increases when receivables are overdue by more than 30 days, focusing instead on collateral value[60]. - The credit committee is responsible for approving any adjustments to repayment schedules on a case-by-case basis[50]. - The company maintains close communication with margin clients to ensure timely responses to credit enhancement measures[56]. Employee and Governance - The group employed 13 staff as of December 31, 2021, an increase from 12 in 2020, indicating a slight growth in workforce[98]. - The board currently consists of two executive directors and three independent non-executive directors, with plans to nominate new directors for appointment[107]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring proper operational and regulatory management[109]. - The roles of the chairman and CEO are clearly separated, with Zhang Renliang as chairman and Zhang Chunjun as CEO, ensuring efficient decision-making[110]. - The company has adopted a board diversity policy to enhance skills and ensure a diverse board composition[116]. - The audit committee held 3 meetings during the fiscal year to review and assess the group's risk management and internal control functions[117]. - The company encourages continuous professional development for all directors and employees to stay updated with market and regulatory changes[134]. Shareholder Engagement - The company encourages two-way communication with investors and shareholders, providing detailed business information through interim and annual reports[139]. - The company has a dedicated website to disclose financial and other information related to the group and its operations[139]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting[141]. - The company welcomes shareholders to submit suggestions regarding the group's operations and management for discussion at the general meeting[144].

PineStone 鼎石 Pinestone Capital Limited 鼎石資本有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) (Stock Code 股份代號 : 804) 2021 INTERIM REPORT 中 期 業 績 報 告 二零二一年中期報告 公司資料 2 財務摘要 3 簡明綜合全面收入表 4 簡明綜合財務狀況表 5 簡明綜合權益變動表 7 簡明綜合現金流量表 8 簡明綜合中期財務報表附註 9 管理層討論及分析 22 其他資料 28 1 目錄 鼎石資本有限公司 | --- | --- | |-----------------------|----------------------------------| | | | | 董事會（「董事會」） | 註冊辦事處 | | 執行董事 | Clifton House, 75 Fort Street | | 張仁亮先生 （主席） | P.O. Box 1350 | | 張存雋先生 | Grand Cayman, KY1-1108 | ...

Financial Performance - The company reported a revenue growth of 100% from HKD 16.5 million in 2013 to HKD 33 million in 2014[11]. - Net profit increased approximately 126% from HKD 9.4 million in 2013 to HKD 21.2 million in 2014[11]. - For the year ended December 31, 2020, the company's revenue was approximately HKD 31,800,000, an increase of about 23% compared to HKD 25,900,000 in 2019[36]. - The company reported a loss before tax of approximately HKD 19,300,000 for the year ended December 31, 2020, compared to a profit of HKD 9,600,000 in 2019[21]. - The net loss for the year ended December 31, 2020, was approximately HKD 18,800,000, while the net profit for 2019 was HKD 7,200,000[35]. - Commission income from securities brokerage services increased by approximately 250% to HKD 1,400,000 in 2020 from HKD 400,000 in 2019[36]. - Income from placement and underwriting services surged approximately 62 times to HKD 6,800,000 in 2020 from HKD 108,000 in 2019[36]. - The company recorded a pre-tax loss of approximately HKD 19.3 million and a net loss of about HKD 18.8 million for the year ended December 31, 2020, compared to a pre-tax profit of HKD 9.6 million and a net profit of HKD 7.2 million in 2019[64]. Cash and Assets Management - The company maintained a healthy cash level amidst the challenging economic environment caused by COVID-19 and geopolitical tensions[8]. - Cash and bank balances increased by approximately 129% to HKD 66,900,000 in 2020 from HKD 29,200,000 in 2019[34]. - Total assets decreased from HKD 253,900,000 in 2019 to HKD 228,300,000 in 2020, primarily due to impairment losses on trade receivables and loans totaling HKD 26,400,000[34]. - As of December 31, 2020, cash and bank balances totaled HKD 66,900,000, an increase from HKD 29,200,000 in 2019, while current liabilities rose to HKD 31,646,000 from HKD 10,874,000[68][70]. - The current ratio decreased to 6.99 times in 2020 from 22.6 times in 2019, indicating a significant change in liquidity[70]. Credit Risk Management - The company has established a credit committee to oversee credit policies and monitor the loan portfolio, ensuring compliance with credit risk management[43]. - The credit committee is responsible for approving all loan applications, which must pass a financial background and credit check before approval[43]. - The company has implemented a three-stage model for measuring expected credit losses, assessing factors such as default probability and loss given default[49]. - The company has maintained strict adherence to its credit policies without any enhancements during the reporting period[44]. - The management conducted impairment reviews to evaluate the impairment losses on trade receivables and loans from margin clients[45]. - The company monitors collateral ratios and takes action when they reach warning levels, including restricting further securities purchases for margin clients[40]. - The credit quality of the loan portfolio is regularly reviewed, and any significant deviations from acceptable collateral ratios may require additional collateral or loan repayments[43]. - The company utilizes external credit rating studies and industry trends to inform its assessments of default probabilities and loss rates[50]. - The company assessed credit risk for loans based on factors such as collateral ratio, actual shortfall, delayed repayments, and adverse changes in borrowers' financial conditions[54]. - The company classified loans into three stages based on credit risk, with significant increases in credit risk indicating potential impairment[55]. - The company is actively pursuing recovery actions for impaired loans, including engaging legal advisors and issuing demand letters[62]. - The company noted that the collateral for some loans included listed securities, which are subject to market fluctuations[60]. - The company has identified specific events leading to impairments, such as borrowers failing to repay loans by the due date[60]. - The overall credit risk assessment methodology applied to loans is consistent with that used for trade receivables[55]. Corporate Governance - The company has appointed three independent non-executive directors, each receiving an annual fee of HKD 120,000, with their term ending on May 21, 2021[85]. - The audit committee held three meetings in 2020 to review and assess the group's risk management and internal control functions[87]. - The company has established a compliance committee to ensure adherence to relevant regulations and to oversee internal control matters[108]. - The board confirmed compliance with the trading regulations throughout the entire year of 2020, with no known irregularities reported[104]. - The company has adopted good practices in anti-money laundering and anti-corruption, holding meetings to stay updated on regulations[107]. - The board is responsible for maintaining a sound and effective internal control system, with regular assessments conducted to ensure stakeholder protection[108]. - All directors are required to participate in ongoing professional development to ensure they contribute effectively to the board[106]. - The company has established a diversity policy for its board members, considering various factors such as gender, age, and professional experience[86]. - The independent non-executive directors confirmed their independence as of December 31, 2020, in accordance with listing rules[85]. Shareholder and Market Information - The company maintains a public float of over 25% of its issued shares, with a market capitalization exceeding HKD 30,000,000[97]. - Major shareholders include HCC, holding 1,572,000,000 shares (34.8%), and SCL, holding 802,000,000 shares (17.8%)[155]. - The company has a stock option plan approved by shareholders, allowing for a maximum of 491,000,000 shares to be issued, representing 10.9% of the issued shares as of the report date[159]. - The company has not granted, exercised, canceled, or expired any options under the share option scheme since its adoption[161]. - The board will notify participants about the exercise period of the granted options, which cannot exceed ten years from the date of grant acceptance[160]. - The company will evaluate its dividend payments annually based on financial status, economic environment, and business performance, with no dividend recommended for the year ending December 31, 2020[170][171]. - The company did not recommend the payment of a final dividend for the fiscal year ending December 31, 2020, consistent with the previous year[130]. Employee and Operational Management - Employee benefits expenses increased by approximately 5% to HKD 6,800,000 in 2020 from HKD 6,500,000 in 2019, accounting for about 13% of total expenses[37]. - Employee turnover remained low, with only one employee leaving in 2020, bringing the total number of employees to 12[76]. - The company’s operational management includes oversight of daily settlement operations and regulatory communications, led by a senior vice president with over 15 years of experience[123]. Environmental and Social Responsibility - The company has adopted environmental, social, and governance (ESG) reporting guidelines in its reporting[98]. - The company emphasizes reducing the use of natural resources in operations and implements environmental monitoring measures to minimize environmental impact[196]. - The company encourages collaboration with firms that have good operational practices and aims to invest in socially responsible tools[196]. - The company identified major areas of importance through a materiality assessment, focusing on anti-corruption, customer satisfaction and privacy, labor standards, and employee welfare, health, and safety[194]. - The company actively engages with stakeholders to understand their perspectives and expectations, aiding in the formulation of sustainable development strategies[186]. - Key internal stakeholders include shareholders, employees, and external stakeholders such as suppliers and customers, with various communication channels established[188].