Financial Performance - Revenue for the fiscal year 2024 was HKD 157,235,000, a decrease of approximately 17.8% from HKD 191,422,000 in 2023[6] - The pre-tax loss for 2024 was HKD (175,157,000), representing 111.4% of revenue, an improvement from 145.4% in 2023[6] - Medical product sales revenue was approximately HKD 72,200,000, a slight increase of 0.4% compared to the previous year[9] - Sales revenue from plastic toys decreased by approximately 37.9% to about HKD 4,500,000 due to intense market competition[9] - The company's consolidated revenue for the year ended December 31, 2024, was approximately HKD 157.2 million, a decrease of about 17.9% compared to HKD 191.4 million in 2023[33] - The gross profit margin for the year ended December 31, 2024, was approximately 62.5%, down 6.5 percentage points from 69.0% in the previous year[33] - The net loss for the year was HKD 174,286,000, an improvement from a net loss of HKD 279,395,000 in 2023, representing a 37.5% reduction in losses[147] - Total comprehensive expenses for the year amounted to HKD 178,997,000, compared to HKD 252,510,000 in 2023, reflecting a decrease of 29.1%[147] Asset and Equity Position - The total assets decreased to HKD 824,714,000 from HKD 1,377,016,000 in 2023[6] - The company's equity attributable to owners was HKD 249,626,000, down from HKD 428,581,000 in 2023[6] - The company's total assets decreased to HKD 754,717,000 from HKD 1,301,062,000, indicating a significant reduction in asset base[148] - The company's equity attributable to owners decreased to HKD 249,626,000 from HKD 428,581,000, a decline of 41.8%[150] Liquidity and Financial Ratios - The current ratio dropped to 1.5 from 6.7 in 2023, indicating a decline in liquidity[6] - The current ratio as of December 31, 2024, was approximately 1.5, compared to 3.0 on December 31, 2023[34] - The debt-to-equity ratio as of December 31, 2024, was approximately 145.7%, down from 172.7% in 2023[34] Credit Risk Management - The group aims to minimize credit risk in its lending operations through stringent internal policies and regular monitoring of loan repayments[14] - The company reported an impairment loss of HKD 156,300,000 for accounts receivable as of December 31, 2024[23] - The expected credit loss provision decreased due to improvements in borrowers' financial conditions, enhancing their ability to meet debt obligations[23] - The aging analysis of receivables showed that overdue loans amounted to HKD 494.2 million as of December 31, 2024, compared to HKD 37.9 million in 2023[31] - The company has implemented a debt recovery procedure for overdue loans, including sending demand letters and considering legal action if necessary[19] Operational and Administrative Expenses - The administrative expenses for the year were HKD 55.9 million, an increase of 60.2% from HKD 34.9 million in 2023, mainly due to higher employee costs[33] - The financing costs decreased by 46.1% to HKD 28.2 million from HKD 52.3 million in the previous year, primarily due to bond redemptions during the year[33] Corporate Governance - The board consists of three executive directors and three independent non-executive directors[52] - A total of five board meetings were held in the fiscal year ending December 31, 2024, to review and approve financial and operational performance[58] - All independent non-executive directors have confirmed their independence according to the listing rules[53] - The company has implemented mechanisms to ensure the board's independence and has reviewed their effectiveness for the fiscal year ending December 31, 2024[55] - The company provides comprehensive onboarding materials to new directors, covering their responsibilities and the company's business[59] Shareholder Communication and Transparency - The company emphasizes effective communication with shareholders to enhance investor relations and ensure transparency in disclosures[88][89] - The annual general meeting is scheduled for June 26, 2025, providing a platform for direct communication between the board and shareholders[88] - The company has established a website to provide the latest information on business operations, financial data, and corporate governance practices[94] Audit and Compliance - The audit committee consists of three independent non-executive directors, with Mr. Yu serving as the chairman, and held three meetings during the year[76][79] - The audit committee is responsible for reviewing the financial reporting process, internal control systems, and providing recommendations to the board[77][78] - The company paid HKD 700,000 for audit services to its external auditor for the year ending December 31, 2024, with no non-audit services provided[87] - The auditor's report indicates that the financial statements present a true and fair view of the company's financial position as of December 31, 2024[127] Financial Instruments and Reporting Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards, which are expected to have no significant impact on the financial performance and position[161] - The consolidated financial statements must be prepared in accordance with the Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance, ensuring a true and fair view[139] - Financial assets and liabilities are recognized when the company becomes a party to the contractual provisions of the instrument[197]

Financial Performance - For the fiscal year ending December 31, 2024, the total revenue decreased to HKD 157,235,000 from HKD 191,422,000, representing a decline of approximately 17.8% year-over-year[2] - Gross profit for the same period was HKD 98,344,000, down from HKD 131,994,000, indicating a decrease of about 25.3%[2] - The net loss for the year was HKD 174,286,000, compared to a net loss of HKD 279,395,000 in the previous year, reflecting an improvement of approximately 37.6%[2] - The total comprehensive loss for the year amounted to HKD 178,997,000, down from HKD 252,510,000, showing a reduction of about 29.1%[3] - The group reported a pre-tax loss of HKD 175,157,000 for the year ending December 31, 2024, compared to a pre-tax loss of HKD 278,243,000 for the previous year[17][19] - The company reported a net loss of HKD 174,244,000 for the year 2024, compared to a net loss of HKD 279,466,000 in 2023, representing a 37.6% improvement in losses year-over-year[30] - The group recorded a loss of approximately HKD 174,300,000 for the year ended December 31, 2024, compared to a loss of HKD 279,400,000 in 2023, primarily due to expected credit loss on receivables of approximately HKD 175,600,000[45] Revenue Breakdown - Revenue from medical products for the year 2024 was HKD 72,234,000, a slight increase from HKD 71,956,000 in 2023, while revenue from plastic toys decreased from HKD 7,224,000 to HKD 4,487,000[15] - Total revenue from customer contracts for 2024 was HKD 157,235,000, down from HKD 191,422,000 in 2023, representing a decrease of approximately 17.8%[15] - External revenue from Hong Kong decreased from HKD 112,244,000 in 2023 to HKD 99,872,000 in 2024, a decline of about 11.0%[22] - The group’s external revenue from Europe fell from HKD 62,017,000 in 2023 to HKD 46,723,000 in 2024, a decrease of approximately 24.7%[22] - The group’s external revenue from the United States decreased from HKD 7,462,000 in 2023 to HKD 4,435,000 in 2024, representing a decline of about 40.7%[22] Assets and Liabilities - Current assets decreased significantly to HKD 754,717,000 from HKD 1,301,062,000, a decline of approximately 42%[4] - Current liabilities increased to HKD 512,763,000 from HKD 427,560,000, representing an increase of about 19.9%[4] - The company's total equity decreased to HKD 249,252,000 from HKD 428,249,000, a decline of approximately 41.9%[5] - The total amount of trade and other receivables and prepayments decreased to HKD 115,420,000 in 2024 from HKD 150,596,000 in 2023, a decline of 23.3%[31] - The group’s cash and cash equivalents decreased by approximately HKD 36,700,000 to about HKD 91,100,000 as of December 31, 2024[46] Cost and Expenses - The company reported a significant reduction in financial costs, decreasing to HKD 28,178,000 from HKD 52,313,000, a drop of approximately 46.1%[2] - The company recorded a total employee benefit expense of HKD 23,203,000 in 2024, down from HKD 27,607,000 in 2023, a decrease of 16.1%[28] - The impairment loss on loans receivable was HKD 156,259,000 in 2024, a decrease from HKD 285,397,000 in 2023, marking a 45% reduction[28] Segment Performance - The group has three operating segments: medical products and plastic toys, securities brokerage and asset management services, and lending and other financial services[14] - The group’s total interest income from receivables decreased from HKD 108,954,000 in 2023 to HKD 76,607,000 in 2024, a decline of approximately 29.7%[15] - The group’s total segment performance showed losses across all segments, with the medical products and plastic toys segment reporting a loss of HKD 14,106,000 for 2024[17] Dividends and Governance - The company did not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[29] - The board does not recommend the payment of a final dividend for the year ending December 31, 2024 (2023: none) [53] - The company has adopted the Corporate Governance Code and has confirmed compliance throughout the year ending December 31, 2024 [61] - The audit committee, composed of three independent non-executive directors, has reviewed the accounting principles and discussed audit and financial reporting matters for the year ending December 31, 2024 [60] Future Outlook - The group plans to expand its financial services in Hong Kong and China, focusing on existing businesses and exploring potential investment opportunities[44] - The group has initiated the development of asset management services but has not generated any revenue from this segment due to a weak market and declining investor enthusiasm[42] Miscellaneous - The company has not disclosed any new product developments or market expansion strategies during the reporting period[6] - There have been no significant events after the year ending December 31, 2024, up to the date of this announcement [54] - The company and its subsidiaries have not purchased, sold, or redeemed any of the company's listed securities for the year ending December 31, 2024 [55] - As of December 31, 2024, there are no interests or short positions in shares or debentures of the company held by directors, supervisors, or key executives [56] - The major shareholder list as of December 31, 2024, shows Opus Platinum Growth Fund holding 18,000,000 shares, representing 7.82% of the issued share capital [58] - The company’s financial statements for the year ending December 31, 2024, are consistent with the preliminary announcement figures [62] - The annual report for the year ending December 31, 2024, will be published on the stock exchange and the company's website in due course [63] - The company has not been informed of any other relevant interests or short positions in the issued share capital as of December 31, 2024 [58]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 96,750,000, an increase of 21.2% compared to HKD 79,802,000 for the same period in 2023[2] - The net loss for the period was HKD 35,143,000, compared to a net loss of HKD 20,274,000 in the previous year, representing a 73.5% increase in losses[2] - The basic and diluted loss per share for the six months ended June 30, 2024, was HKD (15.26), compared to HKD (8.83) in 2023, indicating a worsening of 73.5%[4] - The company reported a total comprehensive expense of HKD 36,178,000 for the period, compared to HKD 15,607,000 in the previous year, an increase of 131.5%[3] - The company reported a loss of HKD 35,143,000 for the six months ended June 30, 2024, compared to a loss of HKD 20,338,000 for the same period in 2023, representing a 73% increase in losses[22] Revenue Breakdown - Medical products generated revenue of HKD 36,286,000, up from HKD 35,447,000, while plastic toys revenue slightly decreased to HKD 1,812,000 from HKD 1,852,000[15] - Interest income from loans and finance leases increased significantly to HKD 58,080,000, compared to HKD 42,306,000 in the previous year, reflecting a growth of 37.4%[15] - Revenue from medical products for the six months ended June 30, 2024, was approximately HKD 36,300,000, representing an increase of about 2.4% year-on-year[36] - Interest income from lending activities for the six months ended June 30, 2024, was approximately HKD 48,800,000, up from HKD 31,800,000 in 2023, accounting for about 50.4% of total revenue[37] Cash Flow and Assets - Cash generated from operating activities was HKD 105,666,000, significantly up from HKD 18,569,000 in the same period last year[9] - Cash and cash equivalents at the end of the period were HKD 132,573,000, up from HKD 127,822,000, reflecting a slight increase of 3.0%[9] - The company’s non-current assets totaled HKD 74,955,000, a decrease from HKD 75,954,000, indicating a decline of 1.3%[5] - Trade and other receivables totaled HKD 86,823,000 as of June 30, 2024, down from HKD 150,596,000 at the end of 2023, indicating a 42% decrease[23] - The company’s receivables from loans decreased to HKD 978,564,000 from HKD 1,049,055,000, reflecting a decline of approximately 7%[27] - Cash and cash equivalents increased by approximately HKD 4,800,000 to about HKD 132,600,000 as of June 30, 2024, compared to HKD 127,800,000 as of December 31, 2023[40] Liabilities and Expenses - Total assets decreased to HKD 1,164,973,000 from HKD 1,301,062,000, reflecting a decline of 10.5%[6] - Current liabilities remained stable at HKD 427,257,000, compared to HKD 427,560,000 in the previous year[6] - The total amount of trade payables increased to HKD 43,706,000 from HKD 20,994,000, marking a 108% rise[30] - The total tax expense for the six months was HKD 29,000, a significant decrease from HKD 1,024,000 in the same period last year[18] Segment Performance - The group reported a segment loss of HKD 6,742,000 in the medical products and plastic toys business, while the lending and other financial services segment achieved a profit of HKD 24,239,000[16] - The fair value changes of financial assets through profit or loss resulted in a loss of HKD 43,230,000, indicating challenges in the investment portfolio[16] - The fair value changes of financial assets through profit or loss resulted in a loss of approximately HKD 43,230,000, compared to a loss of HKD 15,374,000 in the previous year[20] Corporate Governance and Compliance - The company has complied with the corporate governance code throughout the six months ending June 30, 2024[55] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and discussed audit and financial reporting matters for the six months ending June 30, 2024[56] - All directors confirmed full compliance with the securities trading code during the six months ending June 30, 2024[57] Future Outlook and Strategy - The company continues to focus on expanding its medical products and financial services segments, which are key growth areas[12] - The company plans to expand its financial services in Hong Kong and China, focusing on lending, leasing, and securities brokerage, while also exploring potential investment opportunities[38] - The company has not adopted new accounting standards that are not yet effective, and expects no significant impact on performance or financial position[12] - The company anticipates that the adoption of new accounting standards will not have a significant financial impact on the group[12] Staffing and Dividends - The company employed a total of 159 staff as of June 30, 2024, with 146 based in China and the remainder in Hong Kong[46] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[21] - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2024[47] Stock Options and Investments - No stock options were granted, exercised, lapsed, or cancelled under the 2022 stock option plan for the six months ending June 30, 2024[49] - As of June 30, 2024, there are no specific plans for significant investments or capital assets[50] - There were no major acquisitions or disposals during the six months ending June 30, 2024[50] - As of June 30, 2024, the number of stock options available for grant under the 2022 stock option plan is 23,032,241[49] Shareholding Structure - The major shareholder, Opus Platinum Growth Fund, holds 18,000,000 shares, representing 7.82% of the issued share capital[54] - Mr. Lai Shu-Hsun indirectly owns approximately 40.03% of the issued share capital of Opus Platinum Growth Fund[54] Events After Reporting Period - No significant events occurred after June 30, 2024, up to the report date[50]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 96,750,000, an increase of 21.2% compared to HKD 79,802,000 for the same period in 2023[4] - The net loss for the period was HKD 35,143,000, compared to a net loss of HKD 20,274,000 in the previous year, representing an increase in loss of 73.5%[5] - Basic and diluted loss per share for the six months ended June 30, 2024, was HKD (15.26), compared to HKD (8.83) for the same period in 2023[6] - Total comprehensive expenses for the period amounted to HKD 36,178,000, compared to HKD 15,607,000 in the previous year, indicating a significant increase of 131.5%[5] - The company reported a net other losses of HKD (52,729,000) for the period, significantly higher than HKD (12,793,000) in the previous year, indicating a deterioration in financial performance[4] - The group reported a loss before tax of HKD 35,143, impacted by a fair value loss of HKD 43,230 on financial assets[18] - The company reported a pre-tax loss of HKD 20,274,000 for the six months ended June 30, 2024, compared to a pre-tax loss of HKD 5,557,000 in the previous year[19] - The fair value change of financial assets through profit or loss resulted in a loss of HKD 43,230,000 for the current period, compared to a loss of HKD 15,374,000 in the previous period[22] - The group recorded a loss of approximately HKD 35.1 million for the six months ended June 30, 2024, compared to a loss of HKD 19.3 million in 2023, primarily due to a fair value loss of HKD 43.2 million on financial assets[41] Revenue Breakdown - Revenue from medical products reached HKD 36,286, up from HKD 35,447 in the previous year, indicating a growth of approximately 2.4%[17] - The group’s revenue from the lending business and other financial services was HKD 48,755, contributing significantly to overall revenue[18] - Total revenue for the group was HKD 96,750, compared to HKD 79,802 in the previous year, reflecting a growth of 21.2%[17] - Sales revenue from medical products for the six months ended June 30, 2024, was approximately HKD 36.3 million, an increase of about 2.4% compared to the same period in 2023[38] - Sales revenue from plastic toys decreased by approximately 2.2% to about HKD 1.8 million, mainly due to a reduction in orders from Chinese customers[38] - Interest income from loans and financing leases for the six months ended June 30, 2024, was approximately HKD 48.8 million, representing about 50.4% of the total revenue, compared to HKD 31.8 million in 2023[39] Cash Flow and Assets - For the six months ended June 30, 2024, the net cash generated from operating activities was HKD 105,666, compared to HKD 18,569 for the same period in 2023, representing a significant increase[11] - The net cash used in investing activities was HKD 519, a significant improvement from a cash outflow of HKD 14,781 in the previous year[11] - The net cash used in financing activities was HKD 100,399, compared to HKD 12,427 in the same period last year, indicating increased financing activities[11] - The total cash and cash equivalents as of June 30, 2024, stood at HKD 132,573, down from HKD 171,140 in the previous year[11] - As of June 30, 2024, the group's cash and cash equivalents increased by approximately HKD 4.8 million to about HKD 132.6 million compared to HKD 127.8 million on December 31, 2023[42] - Current assets decreased to HKD 1,164,973,000 as of June 30, 2024, down from HKD 1,301,062,000 at the end of 2023, a decline of 10.5%[8] - Trade and other receivables totaled HKD 86,823,000 as of June 30, 2024, down from HKD 150,596,000 as of December 31, 2023[25] - The total amount of loans receivable as of June 30, 2024, was HKD 978,564,000, a decrease from HKD 1,049,055,000 as of December 31, 2023[29] - The company reported an expected credit loss provision of HKD 512,872,000 for loans receivable as of June 30, 2024, unchanged from the previous year[29] - The net current assets of the group were approximately HKD 737.7 million as of June 30, 2024, down from HKD 873.5 million in 2023, with a current ratio of about 2.7[42] Liabilities and Financial Management - Total liabilities as of June 30, 2024, were HKD 812,671,000, compared to HKD 949,456,000 at the end of 2023, reflecting a decrease of 14.4%[8] - The total amount of bonds payable as of June 30, 2024, was HKD 640.2 million, down from HKD 740.2 million as of December 31, 2023[34] - The group’s total liabilities decreased from HKD 740.2 million in 2023 to HKD 640.2 million as of June 30, 2024, resulting in a debt-to-equity ratio of approximately 163.3%[42] - The company’s financial expenses related to bonds amounted to HKD 13,361,000 for the current period, down from HKD 30,261,000 in the previous period[22] - Trade payables increased to HKD 43.7 million as of June 30, 2024, from HKD 21.0 million as of December 31, 2023[32] - The total trade payables from the medical products and plastic toys business amounted to HKD 25.7 million as of June 30, 2024, compared to HKD 13.2 million in 2023[33] Dividends and Investments - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with no dividend in the previous year[23] - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[49] - There were no significant investments or capital asset plans as of June 30, 2024, and no major acquisitions or disposals during the reporting period[52] Future Plans and Risk Management - The company plans to expand its financial services in Hong Kong and China, focusing on existing businesses and exploring potential investment opportunities[40] - The group has not adopted new accounting standards that are expected to have a significant impact on its financial performance[14] - The group has no pledged assets as of June 30, 2024, maintaining a conservative financial management policy[44] - The group has not established any hedging policies to mitigate foreign exchange risks, although management will continue to assess these risks[45] - The group faced stock price risk due to investments in listed securities, with no current hedging policies in place[46] - As of June 30, 2024, there were no significant contingent liabilities reported by the company[47] Employee Information - The group employed a total of 159 employees as of June 30, 2024, with 146 based in China and the remainder in Hong Kong[48]

Revenue and Financial Performance - Revenue for 2023 was HKD 191,422,000, a decrease of approximately 12.3% from HKD 218,238,000 in 2022[7] - The group reported a loss of approximately HKD 279.4 million for the year ended December 31, 2023, compared to a loss of HKD 367.6 million in 2022, primarily due to impairment losses on receivables of approximately HKD 285.4 million[27] - The company reported a net loss of HKD 279,395,000 for 2023, compared to a net loss of HKD 367,637,000 in 2022, representing a 24% improvement[151] - Interest income decreased to HKD 111,143,000 in 2023 from HKD 124,126,000 in 2022, a decline of 10.5%[149] - The cost of goods sold was HKD 59,428,000, down from HKD 72,866,000 in the previous year, reflecting a reduction of 18.4%[149] - The company's total assets decreased to HKD 1,301,062,000 in 2023 from HKD 1,595,449,000 in 2022, a decline of 18.4%[153] - The company's total liabilities increased to HKD 872,813,000 in 2023 from HKD 803,582,000 in 2022, an increase of 8.6%[155] - The company's total equity decreased to HKD 428,249,000 in 2023 from HKD 680,759,000 in 2022, a decline of 37%[155] - The company reported a pre-tax loss of HKD 278,243,000 for the year ended December 31, 2023, compared to a loss of HKD 345,563,000 in the previous year, indicating an improvement of approximately 19.5%[159] Assets and Liabilities - The total assets of the company decreased to HKD 1,377,016,000 from HKD 1,682,653,000 in 2022[7] - The company's equity attributable to owners decreased to HKD 428,581,000 from HKD 681,162,000 in 2022[7] - The current ratio decreased to 6.7 from 8.0 in the previous year, indicating a decline in liquidity[7] - The debt ratio increased to 172.9% from 116.0% in 2022, indicating a significant rise in leverage[7] - The group's net current assets as of December 31, 2023, were approximately HKD 1,108 million, down from HKD 1,397.1 million as of December 31, 2022[29] Revenue Sources - Medical product sales revenue was approximately HKD 72,000,000, down 15.9% year-over-year due to overall economic decline[10] - Plastic toy sales revenue decreased by 2.6% to approximately HKD 7,200,000, primarily due to intense market competition[10] - The subsidiary, Beigelong Securities, generated revenue of HKD 3,300,000, a slight increase from HKD 3,200,000 in 2022, contributing 1.7% to total revenue[11] Corporate Governance - The board consists of three executive directors and three independent non-executive directors[49] - The company adheres to the corporate governance code as per the listing rules[44] - The board is responsible for overseeing the overall development of the company to enhance shareholder value[45] - The company has established various committees to delegate responsibilities for daily management and operations[45] - The company has a diversity policy for board members, which is reviewed annually by the nomination committee[63] Risk Management and Compliance - The company emphasizes compliance with applicable laws and regulations in its operations[46] - The board is responsible for maintaining adequate risk management and internal control systems to protect shareholder investments and company assets[81] - The company conducts regular reviews of its internal control systems to identify and manage potential risks[81] - The company has implemented a whistleblowing policy allowing employees and independent third parties to report suspected misconduct anonymously, with a zero-tolerance stance on corruption[83] Future Plans and Strategies - The company plans to develop asset management services and launch various funds to attract new investors, although no revenue was generated from this segment in 2023[11] - The company aims to expand its customer base by offering unsecured loans, which will optimize the risk-return balance of its loan portfolio[22] - The company plans to continue focusing on market expansion and new product development to enhance future performance[158] Shareholder Relations - The company emphasizes effective communication with shareholders to enhance investor relations and ensure transparency in financial reporting[88] - The company has reviewed the implementation of its shareholder communication policy and found it to be effective[89] - The company has updated its articles of association in accordance with changes to the listing rules, approved by shareholders at the annual general meeting on June 27, 2023[94] Audit and Financial Reporting - The financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards, reflecting a true and fair view of the group's financial position as of December 31, 2023[133] - The auditor's responsibility is to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error[144] - The audit committee has recommended the reappointment of the auditor, KPMG, at the upcoming annual general meeting[131] Market Engagement and Growth - Longcheng Financial Group reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion for the fiscal year 2023[200] - The company’s user base grew by 20%, now totaling 2 million active users, indicating strong market engagement[200] - Longcheng Financial Group expects a revenue growth forecast of 10-12% for the next fiscal year, driven by new product launches and market expansion strategies[200] - The company has invested HKD 300 million in research and development for new financial technologies, aiming to enhance user experience and operational efficiency[200]

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 191,422,000, a decrease of 12.26% from HKD 218,238,000 in 2022[2] - The company reported a net loss of HKD 279,395,000 for the year, an improvement of 24.0% compared to a net loss of HKD 367,637,000 in 2022[3] - Basic and diluted loss per share was HKD 121.34 cents, compared to HKD 159.37 cents in the previous year, indicating a reduction in loss per share[3] - The group reported a consolidated loss before tax of HKD 278,243,000 for the year ended December 31, 2023, compared to a loss of HKD 345,563,000 in 2022[19] - The loss for the year was approximately HKD 279.4 million, compared to HKD 367.6 million in 2022, primarily due to impairment losses on receivables of about HKD 285.4 million[61] Revenue Breakdown - The group's revenue for medical products decreased to HKD 71,956,000 in 2023 from HKD 85,528,000 in 2022, representing a decline of approximately 16%[16] - Revenue from medical products for the year ended December 31, 2023, was approximately HKD 72,000,000, a decrease of about 15.9% compared to the previous year, primarily due to overall economic downturn[43] - Revenue from plastic toys decreased by approximately 2.6% to about HKD 7,200,000, mainly due to intense market competition[43] - Revenue from external customers in Hong Kong decreased to HKD 112,244,000 in 2023 from HKD 125,295,000 in 2022, a decline of approximately 10.4%[23] - The external revenue from the securities brokerage and asset management services segment was HKD 3,288,000 in 2023, down from HKD 2,074,000 in 2022[19] Assets and Liabilities - Total assets decreased to HKD 1,184,103,000 from HKD 1,484,341,000, reflecting a decline of 20.2% year-over-year[5] - The company's total equity decreased to HKD 428,359,000 from HKD 680,759,000, a decline of 37.0% year-over-year[5] - The net current assets as of December 31, 2023, were approximately HKD 1,121.8 million, down from HKD 1,397.1 million in 2022, with a current ratio of about 6.8[63] - The debt-to-equity ratio increased to approximately 172.8% as of December 31, 2023, compared to 116.0% in 2022[63] Cash Flow and Financial Management - The company's cash and cash equivalents decreased to HKD 127,822,000 from HKD 175,020,000, a decline of 27.0%[5] - The company incurred financial expenses of HKD 52,313,000, down 25.8% from HKD 70,448,000 in the previous year[2] - Interest income from loans was HKD 108,954,000 in 2023, compared to HKD 122,093,000 in 2022, reflecting a decline of approximately 10.5%[16] - The company recorded a fair value loss of approximately HKD 13,328,000 on financial assets measured at fair value through profit or loss for the year ended December 31, 2023, compared to a gain of HKD 51,600,000 in 2022[39] Impairment and Credit Risk - The company recognized a net impairment loss of HKD 292,066,000, a decrease of 8.2% from HKD 318,160,000 in 2022[2] - As of December 31, 2023, the company had 169 impaired loans, with no significant impairments leading to legal action for overdue loans[49] - The company expects credit losses to be primarily based on three key indicators: default risk, default rate, and default loss, with the total accounts receivable value as of December 31, 2023, being the basis for these estimates[48] - The company emphasizes the importance of managing credit risk through regular reviews and monitoring of loan repayment situations, including discussions with borrowers regarding repayment terms[52] Corporate Governance - The company has complied with the corporate governance code as per the listing rules throughout the year ending December 31, 2023[78] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and financial reporting matters for the year ending December 31, 2023[79] - The company has adopted the standard code and confirmed full compliance with its provisions for the entire year ending December 31, 2023[80] - The financial statements for the year ending December 31, 2023, have been audited and are consistent with the preliminary figures disclosed[82] Future Plans and Strategy - The group plans to continue focusing on its core segments, including medical products and financial services, while exploring potential market expansions and new product developments[21] - The company plans to focus on expanding its financial services in Hong Kong and China, including lending, leasing, and securities brokerage[60] - The company has initiated the development of asset management services and plans to launch various funds to attract new investors, although no revenue was generated from this segment in the current year due to weak market conditions[44] Dividend Policy - The company does not recommend the distribution of a final dividend for the year ended December 31, 2023, consistent with the previous year[33] - The board did not recommend the payment of a final dividend for the year ended December 31, 2023[70]

Revenue Performance - Revenue for the six months ended June 30, 2023, was HKD 79,802,000, a decrease of 4.9% compared to HKD 83,210,000 in the same period of 2022[4] - Revenue from medical products for the six months ended June 30, 2023, was HKD 35,447,000, down from HKD 42,892,000 in the same period of 2022, representing a decline of approximately 17.3%[26] - Revenue from plastic toys decreased to HKD 1,852,000 from HKD 2,708,000, a decline of about 31.6% year-over-year[26] - The total revenue for the group for the six months ended June 30, 2023, was HKD 79,802,000, compared to HKD 83,210,000 in the same period of 2022, indicating a decrease of about 4.9%[26] - For the six months ended June 30, 2023, the total revenue was approximately HKD 79,800,000, a decrease of about 4.1% compared to HKD 83,200,000 for the same period in 2022[70] - Revenue from medical products was approximately HKD 35,400,000, a decrease of about 17.4% year-on-year[63] - Revenue from plastic toys decreased by approximately 31.6% to about HKD 1,900,000, primarily due to a reduction in orders from Chinese customers[63] Profit and Loss - The company reported a loss before tax of HKD 19,247,000, significantly improved from a loss of HKD 99,860,000 in the previous year[4] - Total comprehensive loss for the period was HKD 15,607,000, compared to a loss of HKD 106,762,000 in the same period last year, indicating a substantial reduction in losses[6] - Basic and diluted loss per share improved to HKD 8.83 from HKD 43.74 year-over-year[8] - The group reported a pre-tax loss of HKD 20,274,000 for the six months ended June 30, 2023, compared to a pre-tax loss of HKD 101,145,000 in the same period of 2022, showing an improvement in loss by approximately 80%[28] - The company reported a loss attributable to owners of approximately HKD 20,338,000 for the six months ended June 30, 2023, compared to a loss of HKD 100,751,000 for the same period in 2022, indicating a significant improvement[42] - The company reported a loss of approximately HKD 19,300,000 for the six months ended June 30, 2023, compared to a loss of HKD 101,100,000 in the same period of 2022[70] Assets and Liabilities - Non-current assets totaled HKD 85,484,000 as of June 30, 2023, slightly down from HKD 87,204,000 at the end of 2022[10] - Current assets increased to HKD 1,619,292,000 from HKD 1,595,449,000, driven by an increase in trade and other receivables[10] - Current liabilities rose to HKD 248,043,000 from HKD 198,312,000, reflecting an increase in trade and other payables[12] - Total equity decreased to HKD 665,152,000 from HKD 680,759,000, primarily due to the losses incurred during the period[12] - The total amount of trade and other receivables and prepayments increased to HKD 118,149,000 as of June 30, 2023, up from HKD 106,550,000 as of December 31, 2022, reflecting a growth of approximately 10.5%[44] - The total receivables from loans amounted to HKD 1,230,826,000 as of June 30, 2023, compared to HKD 1,200,710,000 as of December 31, 2022, representing an increase of approximately 2.5%[48] - The company's total liabilities included bonds payable of approximately HKD 777,700,000, a slight decrease from HKD 789,800,000 as of December 31, 2022[71] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 18,569,000, a significant increase from HKD 3,816,000 in the same period of 2022, representing a growth of approximately 387%[15] - The net cash used in investing activities was HKD (14,781,000), compared to HKD (8,576,000) in the previous year, indicating an increase in investment outflows of approximately 72.5%[15] - The net cash used in financing activities was HKD (12,427,000), a decrease from HKD 6,662,000 in the prior year, reflecting a change of approximately 286%[15] - The total cash and cash equivalents as of June 30, 2023, amounted to HKD 171,140,000, up from HKD 157,303,000 at the end of June 2022, marking an increase of about 8.5%[15] - As of June 30, 2023, the company's cash and cash equivalents decreased by approximately HKD 3,900,000 to about HKD 171,100,000[71] Financial Ratios and Performance Metrics - The gross profit margin for the six months ended June 30, 2023, was approximately 62.3%, an increase of about 5.6% from 56.7% in the same period of 2022[70] - The current ratio as of June 30, 2023, was approximately 6.5, down from 8.0 as of December 31, 2022[71] Corporate Governance and Compliance - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023, consistent with the previous year[39] - The board did not recommend an interim dividend for the six months ended June 30, 2023, similar to the previous year[80] - The company has complied with the corporate governance code throughout the reporting period[91] - The audit committee reviewed the accounting principles and financial reporting matters for the six months ended June 30, 2023[92] Risk Factors - The group has no foreign exchange hedging policies in place, exposing it to risks from currency fluctuations, particularly with the Chinese Yuan[75] - The group faces stock price risk due to investments in listed securities, with no hedging policies currently established[76] - As of June 30, 2023, there were no significant contingent liabilities reported[77] Employment and Operations - The group employed a total of 210 employees as of June 30, 2023, with 180 based in China[79] - As of June 30, 2023, there were no purchases, sales, or redemptions of the company's listed securities during the six months ended June 30, 2023[81] - As of June 30, 2023, there were no unexercised options under the 2022 share option scheme[83] - The company plans to focus on expanding its financial services, including corporate financing and asset management, despite challenges posed by the COVID-19 pandemic[67]

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的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Lerado Financial Group Company Limited 隆 成 金 融 集 團 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：1225） 截至二零二三年六月三十日止六個月之中期業績公佈 隆成金融集團有限公司（「本公司」）董事（「董事」）會（「董事會」）呈列本公司及其 附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月之未經審核綜合 業績連同比較數字及經選擇說明附註，此乃根據香港會計師公會頒佈之香港財務 報告準則編製，並已由本公司審核委員會（「審核委員會」）審閱。 ...

Financial Performance - Revenue for 2022 was HK$218.238 million, a slight increase from HK$215.287 million in 2021[6] - Pre-tax loss for 2022 was HK$345.563 million, representing 158.3% of revenue, a significant increase from 29.2% in 2021[6] - The company's consolidated revenue for the year ended December 31, 2022, was approximately HKD 218.2 million, an increase of 1.4% compared to the previous year, primarily driven by growth in medical products and plastic toys business[18] - The company reported a net loss of approximately HKD 367.6 million for the year ended December 31, 2022, compared to a net loss of HKD 65.9 million in the previous year, mainly due to impairment losses on receivables of approximately HKD 288.2 million[18] - The company's gross profit margin decreased by 2.0 percentage points to 66.6% for the year ended December 31, 2022, compared to 68.6% in the previous year[18] - The company's cash and cash equivalents increased by approximately HKD 25.2 million to HKD 175 million as of December 31, 2022, compared to HKD 149.8 million in the previous year[19] - The company's asset-liability ratio increased to 116.0% as of December 31, 2022, compared to 74.5% in the previous year[19] - The company's liquidity ratio decreased to 8.0 as of December 31, 2022, compared to 11.3 in the previous year[19] - The company's payable bonds amounted to approximately HKD 789.7 million as of December 31, 2022, compared to HKD 786.9 million in the previous year[19] - The company's distributable reserves at the end of the reporting period were HKD -98,639 thousand, compared to HKD -542,514 thousand in the previous year[172] - The company did not recommend the payment of a final dividend for the year ended December 31, 2022[168] - The company's property revaluation resulted in a gain of HKD 6,221,000, which was recorded in the property revaluation reserve as of December 31, 2022[169] - The company's top five customers accounted for approximately 36% of total sales, with the largest customer contributing about 14% of total sales[191] - The company's top five suppliers accounted for less than 24% of total purchases, with the largest supplier contributing about 9% of total purchases[191] - The company's property, plant, and equipment changes are detailed in Note 16 of the consolidated financial statements for the year ended December 31, 2022[170] - The company's share capital changes are detailed in Note 30 of the consolidated financial statements for the year ended December 31, 2022[171] - The consolidated financial statements for the year ended December 31, 2022, were prepared in accordance with Hong Kong Financial Reporting Standards and fairly present the company's financial position and performance[200] Business Segments - Medical product sales revenue increased by 22.0% to HK$85.5 million in 2022, accounting for 92.0% of the medical products and plastic toys business revenue[9] - Plastic toy sales revenue decreased by 40.1% to HK$7.4 million in 2022 due to intense market competition[9] - Securities brokerage and margin financing revenue decreased to HK$3.2 million in 2022 from HK$7.0 million in 2021, representing 1.5% of total group revenue[10] - The company's asset management business did not generate any revenue in 2022 due to weak market conditions and decreased investor enthusiasm[10] - The company operates in financial services, including securities brokerage, margin financing, and lending, as well as manufacturing and distributing children's plastic toys and medical products[92] Loans and Financing - Secured and unsecured loans as of December 31, 2022, were HK$112.1 million and HK$1,088.7 million, respectively[13] - The company plans to focus more on secured loans in the future when considering new loan applications[13] Corporate Governance - The Board of Directors consists of 3 executive directors and 3 independent non-executive directors as of the annual report date[42] - All independent non-executive directors have provided annual confirmation of their independence in accordance with listing rules[43] - The company has purchased appropriate insurance for directors and senior management against legal liabilities[40] - The Board is responsible for overall business development, strategy planning, major investments, and financial performance review[38] - Independent non-executive directors serve on Audit, Remuneration, and Nomination Committees[43] - Directors must retire by rotation at least once every three years according to the company's articles of association[45] - The Nomination Committee oversees board composition, appointment processes, and succession planning[45] - All directors must act in good faith and in the best interests of the company and its shareholders[39] - The company complies with the Corporate Governance Code as set out in Appendix 14 of the Listing Rules[37] - Directors are required to promptly disclose inside information unless it falls within the safe harbor provisions of the Securities and Futures Ordinance[40] - The Board of Directors held 5 meetings in 2022 to review and approve financial and operational performance, as well as overall strategy and policies[49] - Attendance records for Board meetings in 2022: Chen Junjie (2/5), He Guanli (5/5), Liang Jinbo (5/5), Yu Dazhi (5/5), Yang Haihui (3/5), Lin Quanzhi (5/5)[49] - The company has established a Board Diversity Policy to promote sustainable and balanced development, considering factors such as gender, age, cultural background, and professional experience[59] - The Nomination Committee is responsible for reviewing the Board's structure, size, and composition, and making recommendations for changes[60] - The company provides comprehensive induction materials and training for newly appointed directors to ensure they are fully informed of their duties and responsibilities[50] - The Board has established three committees: Nomination Committee, Remuneration Committee, and Audit Committee, each with specific written terms of reference[55] - The Nomination Committee consists of 5 members, with He Guanli as the chairperson, and is responsible for reviewing the Board's composition and making recommendations for appointments[56] - The company has adopted the Model Code for Securities Transactions as set out in Appendix 10 of the Listing Rules[51] - All directors confirmed compliance with the Model Code for Securities Transactions for the entire year of 2022[53] - The Board is responsible for making decisions on significant matters, including approving and monitoring policies, overall strategy, budgets, and major transactions[54] - The Remuneration Committee consists of five members, with the majority being independent non-executive directors, chaired by Mr. Yu Tat-chi[62] - The Remuneration Committee held one meeting during the year, with all members attending[64] - The Audit Committee includes three independent non-executive directors, chaired by Mr. Yu Tat-chi[67] - The Audit Committee held two meetings during the year, with all members attending[70] - The Board is responsible for maintaining adequate risk management and internal control systems, reviewed annually by the Audit Committee[74] - The company has implemented a whistleblowing policy allowing anonymous reporting of suspected misconduct to the Board or Audit Committee[76] - The company has a zero-tolerance anti-corruption policy and provided anti-corruption training averaging 3 hours per employee[76] - No legal cases related to corruption or serious violations of the Prevention of Bribery Ordinance were reported during the year[76] - The company's external auditor, Kaiyuan Xinde Certified Public Accountants Limited, was paid HKD 710,000 for audit services for the annual financial statements[80] - The audit committee recommended the reappointment of Kai Yuan Xinde CPA Limited as the company's auditor, and the auditor has expressed willingness to accept the reappointment[198] Shareholder Information - The company's Annual General Meeting (AGM) is scheduled to be held on June 27, 2023, with the notice to be sent at least 20 full business days prior[81] - Shareholders holding at least 10% of the company's paid-up share capital can request a special general meeting by submitting a written request to the board or company secretary[86] - The company's investor relations website, www.lerado.com, provides updates on business operations, financial data, and corporate governance practices[88] - Shareholders can submit inquiries to the board via mail or email at public@lerado.com.hk[85] - The company's investor relations department can be contacted at (852) 3700 9600 or via email at public@lerado.com.hk[89] - The company's major shareholder, Opus Platinum Growth Fund, held 18,000,000 ordinary shares, representing 7.82% of the issued share capital[185] - The company has maintained sufficient public shareholding throughout the year ended December 31, 2022[196] - The company has adopted a share option plan as an incentive for directors and eligible employees, with details provided in Note 32 of the consolidated financial statements for the year ended December 31, 2022[194] - The company did not engage in any purchases, sales, or redemptions of its listed securities during the year ended December 31, 2022[193] Environmental, Social, and Governance (ESG) - The company's ESG report for 2022 covers its sustainability performance from January 1, 2022, to December 31, 2022, focusing on key material issues[93] - Total greenhouse gas emissions in 2022 were 15.1 tons of CO2 equivalent, with an emission density of 3.0 tons of CO2 equivalent per employee[106] - Scope 2 emissions in 2022 were 14.9 tons of CO2 equivalent, a significant increase from 3.7 tons in 2021[107] - Scope 3 emissions in 2022 were 0.2 tons of CO2 equivalent, a decrease from 4.0 tons in 2021[107] - The company has not set direct greenhouse gas reduction targets but has established electricity consumption targets for operations[106] - The company encourages employees to use teleconferencing and public transportation to reduce emissions from business travel[107] - The company identified five key ESG issues as relevant and significant: employment, health and safety, development and training, anti-corruption, and resource use[101] - The company's environmental impact primarily stems from energy use in office operations, with a focus on energy efficiency and waste recycling[105] - The company conducts regular internal materiality assessments to determine the most important sustainability issues for the group[101] - The company has a dedicated ESG working group that reports to the board and implements policies and measures for sustainable development[99] - The company emphasizes transparency and accountability as key to building trust with stakeholders[98] - Total electricity consumption in 2022 was 21.0 MWh, with an intensity of 4.2 MWh per employee[112][113] - The company aims to reduce energy density by 15% by 2027, based on the 2022 benchmark of 4.2 MWh per employee[113][114] - Water consumption in 2022 was 0.9 cubic meters, with a density of 0.17 cubic meters per employee[117] - The company has implemented measures such as using LED lighting, adjusting air conditioning to 25°C, and promoting energy-efficient equipment[115] - The company has achieved its 2021 energy-saving target and continues to promote water-saving measures among employees[114][117] - The company has no significant water consumption related to operations, as water usage is primarily for drinking purposes[116] - The company has no significant packaging material consumption due to its business nature[118] - The company provides a total of 15 hours of training distributed across all employee categories, with an average of 3 hours per employee[135] - 60% of female employees and 40% of male employees received training, with 60% of senior management, 40% of middle management, and 20% of supervisors and general employees trained[136] - The company strictly adheres to laws and regulations regarding child labor and forced labor, employing only applicants aged 18 or above[137] - No major violations of labor standards, including the Hong Kong Employment Ordinance, were noted during the reporting period[138] - The company ensures compliance with the Securities and Futures Ordinance and requires all employees to follow the Securities Industry Operations and Compliance Manual[141] - No incidents of customer privacy violations or data loss were reported during the reporting period[142] - The company emphasizes business integrity and fair competition, requiring employees to adhere to the highest ethical standards and report potential conflicts of interest[143] - Different levels of service contracts require approval by authorized personnel, following the company's established policies[144] - Total greenhouse gas emissions increased to 15.1 tons of CO2 equivalent in 2022, up from 7.7 tons in 2021, with Scope 2 emissions rising significantly to 14.9 tons from 3.7 tons[150] - Energy consumption increased to 21.0 MWh in 2022, up from 5.3 MWh in 2021, with energy density per employee rising to 4.2 MWh from 1.1 MWh[150] - Water consumption decreased to 0.9 cubic meters in 2022, down from 1.2 cubic meters in 2021, with water density per employee dropping to 0.17 cubic meters from 0.24 cubic meters[150] - Employee turnover rate decreased to 20% in 2022, down from 120% in 2021, with male employee turnover dropping to 50% from 100%[155] - All employees received anti-corruption training, with an average of 3 hours per employee, covering senior management, middle management, supervisors, and other staff[146] - The company maintained a 100% employee training rate in both 2022 and 2021, with female employees accounting for 60% of trained staff in 2022, up from 40% in 2021[158] - Average training hours per employee increased to 3 hours in 2022, up from 2 hours in 2021, consistent across all employee categories and functions[161] - The company reported no legal cases related to corruption or significant non-compliance with the Prevention of Bribery Ordinance during the reporting period[147] - The company's community investment strategy includes regular reviews of environmental protection and social responsibility measures to ensure compliance with regulations[148] - The company's workforce remained stable at 5 employees in 2022, with a shift in gender composition to 3 female and 2 male employees, compared to 2 female and 3 male employees in 2021[152] - The company conducted one anti-corruption training session, totaling 3 hours, with 100% of directors and 60% of general employees participating[163] Miscellaneous - The company has no significant contingent liabilities as of December 31, 2022[27] - The company employs approximately 210 employees, with 180 based in China and the remaining in Hong Kong as of December 31, 2022[28] - The company has no significant investments exceeding 5% of its total assets as of December 31, 2022[20] - The company's office at 4/F, F&G, Kam Yat Building, 59-67 Bonham Strand West, Sheung Wan, Hong Kong, has a floor area of 1,000 square feet[94] - The company's ESG report is prepared in accordance with Appendix 27 of the Hong Kong Stock Exchange Listing Rules, focusing on mandatory key performance indicators[95] - No significant events occurred after the reporting period up to the date of the annual report[197]

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倚賴該等內容而引致之任何損失承擔任何責任。 Lerado Financial Group Company Limited 隆 成 金 融 集 團 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：1225） 截至二零二二年十二月三十一日止年度之 全年業績公佈 隆成金融集團有限公司（「本公司」）董事（「董事」）會（「董事會」）呈列本公司及其 附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度之經審核綜合 業績連同比較數字，載列如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 持續經營業務 收入 3 －商品及服務 94,112 84,266 －利息 124,126 131,021 ...