Financial Performance - Revenue for the three months ended March 31, 2021, was HK$12,981,842, a decrease of 8% compared to HK$14,095,207 for the same period in 2020[9] - The Group reported a loss before tax of HK$54,426,801, compared to a loss of HK$17,309,701 in the previous year, indicating a significant increase in losses[9] - The loss attributable to owners of the Company for the period was HK$56,302,524, compared to HK$14,225,550 in the previous year[9] - Basic loss per share for the period was HK$1.55, compared to HK$0.39 for the same period in 2020[9] - The total comprehensive loss for the period ended 31 March 2021 was HK$56,302,524, contributing to a retained loss of HK$348,887,120 as of the same date[50] - The consolidated loss attributable to owners of the Company for the Review Period was approximately HK$56.30 million, compared to approximately HK$14.23 million for the same period in 2020, driven by increased impairment losses and operating expenses[81] Impairment and Losses - Impairment loss on loans receivables, net, was HK$52,865,407, which is more than double the HK$23,199,905 reported in the same period last year[9] - The impairment loss on loans receivables, net, was HK$52,865,407 for the three months ended 31 March 2021, significantly higher than HK$23,199,905 in the same period of 2020[35] - The Group recorded an impairment loss on loans receivables of approximately HK$52.87 million for the Review Period, a significant increase from approximately HK$23.20 million for the corresponding period in 2020, reflecting a rise in overdue loans[68] - The significant increase in impairment loss is attributed to a rise in overdue loans and uncertainty in repayment performance from certain customers[74] - The COVID-19 pandemic has led to a significant increase in credit risk, contributing to the rise in impairment losses on loans receivables during the Review Period[74] Expenses and Costs - Administrative expenses decreased to HK$4,399,177 from HK$6,344,189, reflecting a reduction of approximately 30.7%[9] - Interest expenses on bond payable amounted to HK$197,260 for the three months ended 31 March 2021, with total finance costs reaching HK$229,413, compared to HK$20,611 in the previous year[29] - Other operating expenses increased to approximately HK$6.13 million for the Review Period, compared to approximately HK$1.84 million for the three months ended 31 March 2020, primarily due to higher debt recovery agency service fees and legal fees[78] - Finance costs rose to approximately HK$0.23 million for the Review Period, up from approximately HK$0.02 million for the three months ended 31 March 2020, mainly due to interest expenses on consideration payable and a one-year bond issued by a subsidiary[80] Shareholder Information - Xiao Guoliang holds 1,070,400,000 ordinary shares, representing 29.50% of the company's issued share capital[92] - Ng Kam Lung Volais holds 1,013,040,000 ordinary shares, representing 27.92% of the company's issued share capital[92] - The maximum number of ordinary shares that may be issued under the Share Option Scheme is 362,880,000, which is 10% of the issued ordinary shares as of the report date[97] - No share options have been granted under the Share Option Scheme since its adoption on November 24, 2011[100] - The company did not purchase, sell, or redeem any of its listed securities during the review period[98] - Trading in the company's shares has been suspended since November 24, 2017, and will remain suspended until further notice[110] - The company has made further submissions to the SFC on April 13, 2021, regarding the resumption of trading[110] Corporate Governance - The audit committee comprises four independent non-executive directors and has reviewed the unaudited condensed consolidated results for the review period[113] - The company confirms that there are no competing interests among directors or their close associates during the review period[106] - The company has no controlling shareholder, thus no issues of competing interests from controlling shareholders[106] Market Conditions and Strategy - The Company continues to face high market volatility risks associated with being listed on the GEM of the Stock Exchange[4] - The Group expects that the challenging economic environment due to COVID-19 may continue to affect loan demand and lending risks in the short term[55] - The Group aims to maintain revenue growth and credit quality while ensuring a proper balance between return and risk in the long run[55] - The Group will explore further potential investment opportunities in various financial instruments, including bonds and equity securities, to maximize shareholder value[55] - The Group will maintain a prudent approach in loan assessment and approval processes to safeguard its loan portfolio[55] - The Group will keep monitoring the repayment performance of its loan portfolio and evaluate the repayment ability of its customers[55] Financial Reporting Standards - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2021, with no significant impact on the financial statements[17] Credit Risk Management - The Group will continue to monitor credit risk and modify its credit assessments and control measures as necessary to manage loan receivables[58] - The Group performs collective assessments on impairment allowances for loans receivables at least quarterly, using a provision matrix based on loan types and their credit risk characteristics[72] - Individual assessments for impairment allowances are conducted monthly, considering factors such as expected recovery dates and the fair value of collateral[73] - The measurement of impairment allowances considers the probability of default and loss given default, adjusted for economic conditions and expected unemployment rates[72]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $XX million, representing a YY% growth compared to the previous year[1]. - Revenue for the year ended December 31, 2020, was approximately HK$38.02 million, representing a decrease of approximately 57.23% from HK$88.88 million for the year ended December 31, 2019[24]. - The Group's total loans decreased from approximately HK$88.88 million in 2019 to approximately HK$38.02 million in 2020, representing a decline of about 57.25%[31]. - The Group recorded a consolidated loss attributable to owners of approximately HK$367.61 million for the year ended 31 December 2020, a significant increase from a loss of approximately HK$132.89 million in 2019[80]. - Other income increased significantly from approximately HK$0.04 million in 2019 to approximately HK$1.94 million in 2020, primarily due to government subsidies received under the Employment Support Scheme[43]. User Engagement - User data showed an increase in active users, reaching a total of ZZ million, which is an increase of AA% year-over-year[2]. - Customer satisfaction ratings improved, with a reported increase of GG% in positive feedback from users[8]. Strategic Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of BB% driven by new product launches and market expansion strategies[3]. - The company is planning to expand its market presence in the Asia-Pacific region, targeting a market share increase of DD% over the next two years[5]. - A strategic acquisition was announced, which is expected to contribute an additional EE million in annual revenue starting next year[6]. Operational Efficiency - The company has implemented new strategies to improve operational efficiency, aiming for a reduction in costs by FF%[7]. - Investment in new technology development increased by CC%, focusing on enhancing service efficiency and customer experience[4]. Risk Management - The Group will continue to monitor credit risk and modify credit assessments and control measures as necessary[26]. - The Group actively monitors loan repayment status and has enhanced collection procedures, especially during the COVID-19 pandemic[63][64]. - Credit risk assessments are conducted before each loan is advanced, considering various factors including the borrower's financial background and repayment ability[61][62]. Compliance and Governance - The management emphasized the importance of maintaining compliance with regulatory standards, ensuring a robust governance framework[10]. - The Company has complied with all provisions of the Corporate Governance Code except for specific deviations noted in the report[107]. - The Company ensures compliance with GEM Listing Rules through the Company Secretary and provides access to independent professional advice for Directors[115]. Board Structure and Meetings - The Company has a balanced composition of executive and non-executive Directors, with at least three independent non-executive Directors[112]. - The total number of board meetings held during the year ended 31 December 2020 was 9, with 1 general meeting[139]. - The audit committee held 4 meetings during the year ended 31 December 2020, with all members attending all meetings[150]. Employee Management - The Group employed a total of 31 staff as of December 31, 2020, down from 43 staff in 2019, with total employee remuneration of approximately HK$15.88 million[89]. - Employment expenses within administrative costs decreased from approximately HK$17.42 million in 2019 to approximately HK$16.21 million in 2020, reflecting a decline of about 6.93%[47]. Financial Health - The Group's bank and cash balances were approximately HK$14.38 million as of December 31, 2020, indicating sufficient funds to maintain operations[17]. - The Group's net current assets decreased to approximately HK$237.71 million as of December 31, 2020, compared to approximately HK$668.87 million in 2019, with a current ratio of approximately 17.35 times[86]. - The Group recorded a net debt of approximately HK$2.20 million as of December 31, 2020, compared to net cash of approximately HK$8.19 million in 2019, resulting in a gearing ratio of approximately 0.44%[93].

Financial Performance - For the nine months ended September 30, 2020, the Group reported a revenue of HK$25,946,071, a decrease from HK$67,790,024 in the same period of 2019, representing a decline of approximately 61.8%[9] - The loss before tax for the nine months ended September 30, 2020, was HK$198,945,602, compared to a loss of HK$58,037,175 for the same period in 2019, indicating a significant increase in losses[9] - The total comprehensive loss attributable to owners of the Company for the period was HK$213,354,848, compared to HK$49,899,630 in the previous year, reflecting an increase of approximately 327.5%[9] - Basic loss per share for the nine months ended September 30, 2020, was HK$5.88, compared to HK$1.38 for the same period in 2019, indicating a substantial increase in loss per share[9] - The Group's total comprehensive loss for the period was HK$213,354,848, compared to a loss of HK$49,899,630 for the same period in 2019[49] Income and Expenses - Administrative expenses for the nine months ended September 30, 2020, totaled HK$20,087,993, compared to HK$22,428,594 in the same period of 2019, showing a decrease of approximately 10.4%[9] - Other income for the nine months ended September 30, 2020, was HK$1,944,107, a decrease from HK$38,447 in the same period of 2019[9] - The Group's finance costs for the nine months ended September 30, 2020, were HK$6,557,162, compared to HK$8,105,276 in the same period of 2019, reflecting a decrease of approximately 19.2%[9] - Government subsidy income for the nine months ended September 30, 2020, was HK$1,944,000, significantly higher than no income reported in 2019[22] - The Group's total other income for the nine months ended September 30, 2020, was HK$1,944,107, compared to HK$38,447 in 2019, indicating a substantial increase[22] Impairment and Losses - Impairment loss on loans receivable for the nine months ended September 30, 2020, was HK$20,087,993, compared to HK$22,428,594 in the previous year, indicating a reduction in impairment losses[9] - The impairment loss on loans receivable for the nine months ended September 30, 2020, was HK$11,610,008, compared to HK$11,912,752 for the same period in 2019[32] - The Group recorded an impairment loss on loans receivable of approximately HK$197.18 million, a significant increase from approximately HK$88.58 million for the corresponding period in 2019[82] Shareholder Information - The Group did not recommend any dividend payment to shareholders for the nine months ended September 30, 2020, and 2019[39] - As of September 30, 2020, the maximum number of ordinary shares that may be issued under the Share Option Scheme is 362,880,000, representing 10% of the issued ordinary shares[111] - No share options have been granted under the Share Option Scheme since its adoption on November 24, 2011[114] - The interests of substantial shareholders include Xiao Guoliang with 1,070,400,000 shares (29.50%) and Ng Kam Lung Volais with 1,013,040,000 shares (27.92%) as of September 30, 2020[106] Operational Adjustments - The Group's loan portfolio management will continue to adopt prudent approaches, especially during the loan assessment and approval process, in response to the adverse economic conditions caused by COVID-19[54][58] - The Group will explore potential investment opportunities in bonds, debt instruments, and listed equity securities to maximize shareholder value[56][59] - The Group's capital base will be closely monitored to ensure sufficient funding is maintained for capturing potential opportunities[57][59] - The adverse financial conditions have negatively impacted the repayment ability of the Group's customers, leading to increased lending risks[54] - The Group will continue to implement budget control measures to manage expenses in light of the financial impacts of the COVID-19 pandemic[55] Compliance and Governance - The Group has adopted all amended Hong Kong Financial Reporting Standards relevant to its operations effective from January 1, 2020, with no significant impact on the financial statements[14] - The Audit Committee, comprising four independent non-executive Directors, has reviewed the Group's unaudited condensed consolidated results for the Review Period[123] - The Board believes that the financial information preparation complies with applicable accounting standards and GEM Listing Rules[124] Trading Status - The Company has been suspended from trading since November 24, 2017, and will remain suspended until further notice[121]

Financial Reporting and Compliance - The interim financial information as of June 30, 2020, has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" [14] - The report includes the condensed consolidated statement of financial position and the related condensed consolidated statement of profit or loss for the six-month period ended June 30, 2020 [7] - The directors confirm that the information contained in the report is accurate and complete in all material respects [5] - The report is compliant with the GEM Listing Rules of the Stock Exchange of Hong Kong Limited [5] - The independent review report indicates no significant matters that would lead to a belief that the interim financial information is not prepared properly [14] - The report emphasizes the responsibility of the directors for the preparation and presentation of the interim financial information [7] - The review conducted is less extensive than an audit, and therefore does not provide assurance of identifying all significant matters [9] - The report was issued by Elite Partners CPA Limited, certified public accountants in Hong Kong [15] - The review was completed on August 7, 2020, confirming the financial information's compliance with relevant standards [15] Financial Performance - Revenue for the six months ended June 30, 2020, was HK$6,970,891, a decrease from HK$21,066,098 for the same period in 2019, representing a decline of approximately 66.9% [17] - Loss before tax for the six months ended June 30, 2020, was HK$137,212,463, compared to a loss of HK$154,522,164 for the same period in 2019, indicating a slight improvement [17] - Total comprehensive loss attributable to owners of the Company for the period was HK$145,359,415, significantly higher than the loss of HK$17,498,554 in the previous year [17] - Basic loss per share for the six months ended June 30, 2020, was HK$(4.01), compared to HK$(0.48) for the same period in 2019 [17] - The Group reported a loss before tax of HK$159,584,965 for the six months ended June 30, 2020, compared to a loss of HK$13,114,113 for the same period in 2019, indicating a significant increase in losses [69] - Basic loss per share for the six months ended June 30, 2020, was HK$0.044, compared to HK$0.004 for the same period in 2019, reflecting a deterioration in financial performance [69] - The Group recorded a consolidated loss attributable to owners of approximately HK$159.58 million for the Review Period, compared to a loss of approximately HK$13.11 million for the same period in 2019, primarily due to decreased revenue and increased impairment losses [128] Assets and Liabilities - Non-current assets decreased to HK$97,465,204 as of June 30, 2020, down from HK$190,687,579 at the end of 2019, reflecting a reduction of approximately 48.9% [19] - Current assets totaled HK$609,239,432 as of June 30, 2020, a decrease from HK$677,758,975 at the end of 2019, representing a decline of about 10.1% [19] - Net current assets were HK$602,997,321, down from HK$668,867,300 at the end of 2019, indicating a decrease of approximately 9.8% [19] - Total equity as of June 30, 2020, was HK$699,969,914, a decrease from HK$859,554,879 at the end of 2019, reflecting a decline of about 18.6% [21] - Loans receivable decreased significantly to HK$60,466,638 as of June 30, 2020, from HK$151,877,137 at the end of 2019, a reduction of approximately 60.2% [19] - The Group's total loans receivable amounted to HK$951,233,533 as of June 30, 2020, a decrease from HK$966,238,754 as of December 31, 2019 [81] - The total impairment allowance on loans receivable was HK$372,085,738 as of June 30, 2020, compared to HK$216,846,703 as of December 31, 2019, highlighting increased credit risk management efforts [81] Cash Flow and Financing Activities - For the six months ended June 30, 2020, the net cash generated from operating activities was HK$3,241,857, a decrease of 72.5% compared to HK$11,788,516 in the same period of 2019 [25] - The net cash used in investing activities increased to HK$492,970 from HK$158,668, representing a rise of 210.5% year-over-year [25] - The net cash used in financing activities was HK$2,952,813, compared to HK$2,490,967 in 2019, indicating an increase of 18.6% [25] - Cash and cash equivalents at the end of the period decreased to HK$16,877,964 from HK$46,494,629, marking a decline of 63.7% [25] - The cash and cash equivalents at the beginning of the period were HK$17,081,890, indicating a decrease in liquidity over the reporting period [25] - As of June 30, 2020, the Group had bank and cash balances of approximately HK$16.88 million, slightly down from approximately HK$17.08 million as of December 31, 2019 [129] - There was no bank borrowing as of June 30, 2020, and December 31, 2019 [131] Operational Segments - The Group operates in two segments: money lending and securities trading, with the former showing substantial losses during the reporting period [47] - The total revenue for the six months ended June 30, 2020, was HK$21,066,098, while the segment loss for money lending was HK$156,622,469, reflecting a significant operational challenge [43] - Segment loss for the money lending division for the six months ended June 30, 2020, was HK$5,322,009, compared to a loss of HK$4,189,139 in 2019 [50] - Total loss of reportable segments for the six months ended June 30, 2020, was HK$157,441,467, significantly higher than the loss of HK$9,511,148 in the same period of 2019 [52] - Segment assets as of June 30, 2020, were HK$673,517,194, down from HK$829,607,721 as of December 31, 2019 [50] - Segment liabilities as of June 30, 2020, were HK$7,078,744, compared to HK$8,547,366 as of December 31, 2019 [50] Management and Governance - The Group did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year [68] - The Group's management continues to maintain strict control over outstanding loans receivable to minimize credit risk, with overdue balances regularly reviewed [76] - The Group's management believes that no provision for impairment on past due loans was necessary, as these loans are expected to be substantially or fully settled [87] - The Group adopted a staff training and development policy to enhance competitiveness in the financial market [150][151] - The Company has complied with all code provisions of the Corporate Governance Code except for deviations related to the chairman's role due to the passing of the former chairman on March 9, 2020 [171] - The Board has continued to function effectively despite the absence of a chairman, with significant decisions made collectively [172] Market and Economic Conditions - There is a risk associated with investing in companies listed on GEM due to their susceptibility to high market volatility [3] - The adverse financial and economic situation caused by the COVID-19 pandemic is expected to negatively impact the financial position and repayment ability of the Group's customers in the short term [102] - The Group will maintain sufficient funding through various means to capture different potential opportunities in the market [105] - Following the cessation of the Securities Brokerage Business in mid-August 2019, the Group will focus on proprietary investments in listed securities and explore further investment opportunities [104] Employee and Shareholder Information - The total employee remuneration for the six months ended June 30, 2020, was approximately HK$8.23 million, a decrease from approximately HK$9.34 million for the same period in 2019 [143][148] - The Group employed a total of 41 staff as of June 30, 2020, down from 43 staff as of December 31, 2019 [143][148] - The interests of substantial shareholders included Xiao Guoliang with 1,070,400,000 shares (29.50%) and Ng Kam Lung Volais with 1,013,040,000 shares (27.92%) as of June 30, 2020 [156] Trading and Share Information - Trading in the shares of the Company has been suspended since November 24, 2017, and will remain suspended until further notice [184] - The Company has been making efforts to procure a resumption of trading of its shares, with its application still pending as of July 31, 2020 [184] - The issued and fully paid ordinary shares remained at 3,628,800,000 shares with a par value of HK$0.02 each as of June 30, 2020 [92] - The Group's authorized share capital remained at 250,000,000,000 ordinary shares as of June 30, 2020 [92] - The maximum number of ordinary shares that may be issued under the Share Option Scheme is 362,880,000, representing 10% of the issued ordinary shares as of the report date [160] - No share options have been granted under the Share Option Scheme since its adoption on November 24, 2011 [164] - The Company did not purchase, sell, or redeem any of its listed securities during the Review Period [161]

Financial Performance - Revenue for the three months ended March 31, 2020, was HK$14,095,207, a decrease of 40.2% compared to HK$23,541,788 for the same period in 2019[7]. - The loss before tax for the period was HK$17,309,701, contrasting with a profit of HK$5,341,558 in the same period last year[7]. - The total comprehensive loss attributable to owners of the Company was HK$14,225,550, compared to a profit of HK$4,384,441 in the same period of 2019[7]. - Basic loss per share for the period was HK$0.39, compared to earnings of HK$0.12 per share in the previous year[7]. - For the three months ended 31 March 2020, the Group reported a loss of HK$14,225,550 compared to a profit of HK$4,384,441 for the same period in 2019[30][31]. - The Group recorded a loss attributable to owners of the Company of approximately HK$14.23 million for the Review Period, a turnaround from a profit of approximately HK$4.38 million for the three months ended 31 March 2019[67]. - The loss was mainly attributable to a decrease in revenue and a significant increase in impairment loss on loans receivable during the Review Period[67]. Expenses and Costs - Administrative expenses decreased to HK$6,344,189 from HK$7,478,843, reflecting a reduction of 15.2% year-over-year[7]. - Other operating expenses decreased to approximately HK$1.84 million from approximately HK$3.30 million for the three months ended 31 March 2019, mainly due to a reduction in legal and professional fees[67]. - Interest on lease liabilities decreased to HK$20,611 from HK$70,285 year-on-year, reflecting a reduction of approximately 70.7%[18]. - Depreciation of property, plant, and equipment was HK$143,154, down from HK$1,005,355 in the previous year, indicating a significant decrease of approximately 85.8%[21]. - Finance costs remained stable at approximately HK$0.02 million for the Review Period, compared to approximately HK$0.07 million for the three months ended 31 March 2019[67]. Impairment and Credit Risk - Impairment loss on loans receivable increased significantly to HK$23,199,905, compared to HK$7,352,850 in the previous year, indicating a rise of 215.5%[7]. - The Group recorded an impairment loss on loans receivable of approximately HK$23.20 million, a significant increase from approximately HK$7.35 million in the same period in 2019, mainly due to an increase in past due loans[60]. - The Group will continue to monitor credit risk and adjust its credit assessments and control measures as necessary[48]. - The Company continues to face challenges in loan impairment and revenue generation due to market conditions[7]. Taxation - The income tax credit for the period was HK$3,084,151, compared to an expense of HK$957,117 in the previous year[7]. - The Group's deferred tax credit for the period was HK$492,757, compared to an expense of HK$2,240,280 in the previous year[23][24]. Business Operations and Strategy - The Group continues to focus on money lending business, providing both secured and unsecured loans to various customer segments[39]. - The Group aims to maintain revenue growth and credit quality while monitoring its capital base to ensure sufficient funding for future opportunities[42]. - The cessation of the Securities Brokerage Business in mid-August 2019 resulted in no commission income from securities brokerage services during the Review Period[47]. - The Group is exploring potential investment opportunities in bonds, debt instruments, and listed equity securities following the cessation of its securities brokerage business[41]. - The Group is actively exploring potential investment opportunities, including bonds and debt instruments, to maximize shareholder value[46]. Shareholder Information - As of 31 March 2020, substantial shareholders included Xiao Guoliang with 1,070,400,000 shares (29.50%) and Ng Kam Lung Volais with 1,013,040,000 shares (27.92%) of the Company[72]. - The Company adopted a Share Option Scheme on 24 November 2011, allowing for the issuance of up to 362,880,000 ordinary shares, representing 10% of the issued ordinary shares as of the report date[76][77]. - No share options have been granted under the Share Option Scheme since its adoption[81]. - The Company did not purchase, sell, or redeem any of its listed securities during the Review Period[78]. Trading and Compliance - Trading in the shares of the Company has been suspended since 24 November 2017 and will remain suspended until further notice[86]. - The company submitted written representations to the SFC on October 31, 2019, and January 16, 2020, and is currently awaiting a response regarding its trade resumption application[89]. - The company cannot provide a concrete resumption timeframe due to uncertainty regarding the SFC's satisfaction with its further written representations[91]. - The Audit Committee, comprising four independent non-executive Directors, has reviewed the unaudited condensed consolidated results for the review period[94]. - The Board believes that the financial information prepared complies with applicable accounting standards and GEM Listing Rules[95].

Financial Performance - First Credit Finance Group Limited reported a revenue increase of 5.7% in the annual report for 2019[1] - The total assets of the company reached approximately HKD 11,126.98 million, reflecting a growth of 2.4%[1] - The Group's revenue for the year ended December 31, 2019, was approximately HK$88.88 million, a decrease of approximately 4.18% compared to HK$92.76 million for the year ended December 31, 2018[23] - The average loan balance increased from approximately HK$897.42 million as of December 31, 2018, to approximately HK$961.89 million as of December 31, 2019, representing a growth of approximately 7.18%[15] - Revenue from unsecured loans totaled HK$70.83 million in 2019, compared to HK$68.69 million in 2018, while revenue from secured loans decreased to HK$18.04 million from HK$24.05 million[32] - Other income significantly dropped by approximately 99.36%, from HK$6.17 million in 2018 to HK$0.04 million in 2019, mainly due to the absence of one-off compensation income[40] - The Group recorded a loss attributable to owners of approximately HK$132.89 million for the year ended 31 December 2019, compared to a profit of approximately HK$25.93 million for the year ended 31 December 2018[68] Strategic Focus - The company aims to expand its market presence and enhance its product offerings in the coming years[1] - Future performance guidance indicates a focus on increasing user engagement and customer base[1] - The company is actively pursuing new product development and technological advancements to stay competitive[1] - There is a strategic emphasis on mergers and acquisitions to bolster growth and market share[1] - The Group aims to maintain revenue growth and credit quality while ensuring sufficient funding for potential opportunities[21] - The Group's strategy includes diversifying its customer base to enhance competitiveness in the money lending industry[15] Corporate Governance - The management highlighted the importance of maintaining compliance with GEM Listing Rules to ensure transparency[5] - The company is committed to improving its corporate governance practices to enhance investor confidence[5] - The Company has complied with all corporate governance code provisions except for code provision A.6.5 during the year ended December 31, 2019[90] - The Board is responsible for formulating the Group's long-term strategy and supervising management to ensure effective performance of their duties[92] - The Company is committed to maintaining high standards of corporate governance to safeguard shareholders' interests[90] - The roles of Chairman and Chief Executive Officer were held by different individuals to ensure a clear division of responsibilities and independence[105] Risk Management - The Group's focus remains on strengthening credit risk control by reviewing and modifying current credit assessments and control measures[15] - The Company’s risk management and internal control systems are designed to identify and monitor risks from day-to-day operations, ensuring optimal risk levels while facilitating business development[190] - The Board conducted an annual review of the effectiveness of the Risk Management and Internal Control (RM & IC) Systems for the year ended December 31, 2019, and deemed these systems effective and adequate[199] Compliance and Regulatory Matters - The Group acknowledges the higher investment risks associated with being listed on GEM, which may affect market volatility[2] - The compliance committee regularly reviews the Group's adherence to the Money Lenders Ordinance and other relevant regulations[170] - The Company has taken appropriate measures to comply with various regulatory requirements, including the Bermuda Economic Substance Act and amendments to GEM Listing Rules[181] Operational Changes - The Group ceased its Securities Brokerage Business in mid-August 2019, leading to negligible revenue from this segment in the current year[16] - The Group will continue to engage in proprietary investment in listed securities while monitoring its cash position and exploring potential investment opportunities[17] - The Group recorded other losses of approximately HK$3.95 million in 2019, compared to gains of approximately HK$1.19 million in 2018, attributed to fair value losses on investments[41] Financial Metrics - The average interest rate in the money lending business decreased from approximately 10.33% per annum in 2018 to approximately 9.24% per annum in 2019, contributing to the overall revenue decline[24] - The net interest margin for the Group was approximately 8.95% for the year ended December 31, 2019, down from approximately 9.89% for the corresponding period in 2018[33] - The Group's net current assets amounted to approximately HK$668.87 million as of 31 December 2019, compared to approximately HK$548.07 million as of 31 December 2018, with a current ratio of approximately 76.22 times[72] - The Group's liquidity was considered satisfactory by the Board, with no bank borrowings as of 31 December 2019[72] Board and Committee Activities - The audit committee held 5 meetings during the year, with all members attending 100% of the meetings[128] - The nomination committee held a total of 3 meetings during the year ended 31 December 2019[141] - The remuneration committee held a total of 4 meetings during the year ended 31 December 2019[156] - The credit committee held 2 meetings during the year ended 31 December 2019 to oversee the Group's credit policy and loan portfolio[167] - The compliance committee, comprising one executive Director and four independent non-executive Directors, also held 2 meetings during the year ended 31 December 2019[176]

Financial Performance - For the nine months ended September 30, 2019, the Group reported revenue of HK$67,790,024, a decrease from HK$71,494,906 in the same period of 2018, representing a decline of approximately 5.5%[8] - The Group incurred a loss before tax of HK$42,878,746 for the three months ended September 30, 2019, compared to a profit of HK$8,387,778 in the same period of 2018[8] - Total comprehensive loss for the period attributable to owners of the Company was HK$36,785,517 for the three months ended September 30, 2019, compared to a profit of HK$6,369,593 in the same period of 2018[8] - The company reported a loss before tax of HK$49,899,630 for the nine months ended September 30, 2019, compared to a profit of HK$23,166,295 in the same period of 2018[70] - The Group reported a basic loss attributable to owners of approximately HK$49.90 million for the nine months ended September 30, 2019, compared to a profit of approximately HK$23.17 million for the same period in 2018[75] Impairment and Losses - The impairment loss on loans receivable for the nine months ended September 30, 2019, was HK$88,583,555, significantly higher than HK$13,164,575 in the same period of 2018[8] - Other gains and losses for the three months ended September 30, 2019, were reported at a loss of HK$2,199,470, compared to a loss of HK$2,539 in the same period of 2018[8] - The Group recorded other losses of approximately HK$3.48 million during the Review Period, compared to other gains of approximately HK$1.19 million in the same period of 2018, mainly due to a decrease in the fair value of financial assets[101] - The impairment loss on trading rights was recorded at HK$3.10 million during the Review Period, resulting from the cessation of the Securities Brokerage Business in August 2019[111] Income and Revenue Sources - For the nine months ended September 30, 2019, interest income from loan facilities was HK$67,783,858, a decrease of 5.5% compared to HK$71,485,970 for the same period in 2018[46] - Commission income from securities brokerage for the nine months ended September 30, 2019, was HK$6,166, a decrease of 30.8% from HK$8,936 in the same period of 2018[46] - Dividend income for the nine months ended September 30, 2019, was HK$31,640,000, compared to zero in the same period of 2018[48] - Loan interest income accounted for approximately HK$67.78 million of the revenue, reflecting a decrease in average interest rate from approximately 10.56% per annum in 2018 to approximately 9.42% per annum in 2019[93] Expenses and Costs - Administrative expenses for the nine months ended September 30, 2019, totaled HK$64,344,291, down from HK$78,855,658 in the same period of 2018, indicating a reduction of approximately 18.5%[8] - The Group's other operating expenses and finance costs for the nine months ended September 30, 2019, amounted to HK$8,105,276, a decrease from HK$12,867,412 in the same period of 2018[8] - The Group's finance costs significantly decreased from approximately HK$1.58 million for the nine months ended September 30, 2018, to approximately HK$0.16 million for the Review Period, due to the absence of interest expense on loans[107] Accounting Standards and Policies - The unaudited condensed consolidated results have been prepared in accordance with applicable Hong Kong Financial Reporting Standards and GEM Listing Rules[10] - The Group has adopted new and revised Hong Kong Financial Reporting Standards (HKFRS) effective from January 1, 2019, including HKFRS 16 Leases, which has had no material impact on the Group's financial performance and positions for the current and prior periods[14][15]. - The application of HKFRS 16 has resulted in changes to the accounting policies but has not significantly affected the disclosures in the condensed consolidated financial statements[14][15]. - The Group's accounting policies now include specific provisions for short-term leases and low-value asset leases[21][24]. Shareholder and Governance Information - The company did not recommend the payment of any interim dividend for the nine months ended September 30, 2019, and 2018[69] - As of September 30, 2019, the maximum number of ordinary shares that may be issued under the Share Option Scheme is 362,880,000, representing 10% of the issued ordinary shares of the Company[124] - The Company and its subsidiaries did not purchase, sell, or redeem any of the Company's listed securities during the Review Period[125] - The Company has complied with all code provisions set out in the Corporate Governance Code during the Review Period[126] Trading and Market Activity - Trading in the shares of the Company has been suspended since November 24, 2017, and will remain suspended until further notice[128] - The Company is currently awaiting a response from the SFC regarding further submissions made on October 31, 2019, seeking permission for resumption of trading[139] Future Outlook and Strategic Initiatives - The Board is exploring further potential investment opportunities, including bonds and project-based investments, to enhance shareholder value[87] - The Group aims to maintain revenue growth and credit quality while closely monitoring its capital base for future opportunities[88]

Financial Reporting Standards - The interim financial information as of June 30, 2019, is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" [15] - The report includes the condensed consolidated statement of financial position and the related condensed consolidated statement of profit or loss for the six months ended June 30, 2019 [9] - The comparative financial statements for the six months ended June 30, 2018, have not been reviewed in accordance with the relevant standards [16] - The independent review report does not express an audit opinion but concludes that nothing has come to attention that would indicate the financial information is not prepared correctly [15] - The independent auditor's review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 [11] Financial Performance - Revenue for the three months ended June 30, 2019, was HK$23,165,092, an increase from HK$22,918,078 in the same period of 2018, representing a growth of approximately 1.08% [20] - The loss before tax for the six months ended June 30, 2019, was HK$15,158,429, compared to a profit of HK$19,830,108 in the same period of 2018, indicating a significant decline [20] - Basic loss per share for the three months ended June 30, 2019, was HK$0.48, compared to earnings of HK$0.02 per share in the same period of 2018 [20] - The company reported a comprehensive loss of HK$17,498,554 for the three months ended June 30, 2019, compared to a profit of HK$801,191 in the same period of 2018 [20] - For the six months ended June 30, 2019, total revenue was HK$46,706,880, a slight decrease from HK$48,511,601 for the same period in 2018 [73] - The total segment loss for the six months ended June 30, 2019, was HK$9,511,148, compared to a profit of HK$16,107,731 in the same period of 2018 [73] - The Group recorded a loss attributable to owners of approximately HK$13.11 million for the Review Period, compared to a profit of approximately HK$16.80 million for the six months ended 30 June 2018 [180] Assets and Liabilities - Total non-current assets decreased to HK$286,051,888 as of June 30, 2019, from HK$444,382,934 as of December 31, 2018, reflecting a decline of approximately 35.7% [22] - Current assets increased to HK$702,336,880 as of June 30, 2019, compared to HK$551,235,605 as of December 31, 2018, showing an increase of approximately 27.4% [22] - Total current liabilities rose to HK$8,991,441 as of June 30, 2019, from HK$3,170,589 as of December 31, 2018, indicating an increase of approximately 183.5% [22] - Net current assets improved to HK$693,345,439 as of June 30, 2019, compared to HK$548,065,016 as of December 31, 2018, representing an increase of approximately 26.5% [22] - The total assets less current liabilities as of June 30, 2019, were HK$979,397,327, slightly down from HK$992,447,950 as of December 31, 2018 [24] Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2019, was HK$11,788,516, a decrease of 51.8% compared to HK$24,414,713 in 2018 [29] - Net cash used in investing activities was HK$158,668, compared to a net cash generated of HK$507,492 in the same period of 2018 [29] - Net cash used in financing activities was HK$2,490,967, significantly lower than HK$151,582,846 in the previous year [29] - The net increase in cash and cash equivalents for the period was HK$9,138,881, contrasting with a net decrease of HK$126,660,641 in 2018 [29] - Cash and cash equivalents at the end of the period stood at HK$46,494,629, down from HK$75,359,860 at the end of June 2018 [29] Segment Information - The company operates in two segments: money lending and securities trading, with segment profit/loss reported before unallocated other income and corporate expenses [69] - The money lending segment reported a revenue of HK$46,703,822, while the securities trading segment generated HK$3,058 [73] - The company recognized a segment loss of HK$5,322,009 in the money lending segment for the six months ended June 30, 2019 [73] - As of June 30, 2019, segment assets amounted to HK$975,988,826, while segment liabilities were HK$6,153,358 [78] Impairment and Credit Risk - The impairment allowance on collective assessment increased significantly to HK$55,387,932 from HK$17,633,985 in the previous period, indicating a rise in credit risk [113] - The net charge for impairment allowance for loans receivable was HK$31,975,445 for the six months ended June 30, 2019, compared to HK$9,679,235 in the previous period [113] - Impaired loans increased significantly to HK$69,871,657 from HK$30,821,381, indicating a rise in financial difficulties among clients [120] - The company maintained strict control over its outstanding loans receivable to minimize credit risk, with overdue balances regularly reviewed by management [114] Business Strategy and Operations - The Group has decided to cease the Securities Brokerage Business effective from August 16, 2019, due to underperformance since the acquisition of Asia Wealth Securities [186] - The Group is actively exploring potential investment opportunities, including bonds, debt instruments, and project-based investments [155] - The Board believes that the cessation of the Securities Brokerage Business will not materially impact the Group's financial performance and will allow better resource allocation towards its money lending business [189] - The Group aims to maintain revenue growth and credit quality while ensuring sufficient funding to support various potential opportunities [156] Share Capital and Ownership - The total issued and fully paid share capital was HK$72,576,000 as of June 30, 2019, with 3,628,800,000 shares issued [139] - As of June 30, 2019, Xiao Guoliang holds 1,070,400,000 shares, representing 29.50% of the Company's issued share capital, while Ng Kam Lung Volais holds 1,013,040,000 shares, representing 27.92% [200]

Financial Performance - For the three months ended March 31, 2019, the company reported total revenue of HKD 23,541,788, a decrease of 8.0% from HKD 25,593,523 in the same period of 2018[4] - The profit attributable to owners of the company for the period was HKD 4,384,441, a decrease of 72.6% compared to HKD 15,995,511 in the previous year[4] - Basic earnings per share for the period was HKD 0.12, down from HKD 0.44 in the same period last year, representing a decline of 72.7%[5] - The group recorded a pre-tax profit of HKD 4,384,441 for the three months ended March 31, 2019, compared to HKD 15,995,511 for the same period in 2018[24] - The group did not recommend any dividends for the three months ended March 31, 2019, and 2018[23] Expenses and Losses - The company's administrative expenses were HKD 7,478,843, down from HKD 8,044,626, reflecting a reduction of 7.0%[4] - The impairment loss on loans receivable increased significantly to HKD 7,352,850 from HKD 1,010,362, indicating a rise of 627.0%[4] - Other income decreased significantly from approximately HKD 5,580,000 to about HKD 200 due to the absence of a one-time compensation income from a former director[34] - Financial expenses significantly decreased from approximately HKD 1,120,000 to about HKD 70,000, as there were no loan interest expenses during the review period[40] - Other operating expenses remained stable at approximately HKD 3,300,000, compared to about HKD 3,730,000 in the same period last year[39] Revenue Sources - Interest income from loan financing was HKD 23,541,082, down from HKD 25,585,258, a decrease of 8.0%[11] - The company recorded other income of HKD 178, a substantial decline from HKD 5,576,594 in the same period last year, indicating a decrease of 96.8%[12] - The group's revenue decreased to approximately HKD 23,540,000 for the three months ended March 31, 2019, compared to HKD 25,590,000 for the same period in 2018, reflecting a decline in interest income from lending activities[32] Business Operations - The group continues to focus on its lending business, providing secured and unsecured loans to various customer segments[29] - The group has received approval to commence margin financing business, which is expected to provide new revenue sources in the future[29] - Average loan balances increased by approximately 5.38% to about HKD 963,490,000 during the review period, compared to approximately HKD 914,260,000 in the same period last year[32] - The average annual interest rate for lending decreased from approximately 11.19% for the three months ended March 31, 2018, to approximately 9.77% for the review period[32] - The net interest margin for the lending business was approximately 9.49% during the review period, down from approximately 10.56% for the same period in 2018, indicating a competitive low-interest environment[33] Corporate Governance - The Audit Committee, composed of four independent non-executive directors, reviewed the unaudited consolidated performance for the reporting period[57] - The financial data preparation complies with applicable accounting standards and GEM listing rules, ensuring adequate disclosure[57] Shareholder Information - As of March 31, 2019, major shareholders include Xiao Guoliang with 1,070,400,000 shares (29.50%) and Wu Jinlong with 1,013,040,000 shares (27.92%) of the company[44] - The company has not granted any stock options under the stock option plan since its adoption on November 24, 2011[48] - The company's shares have been suspended from trading since November 24, 2017, and will remain suspended until further notice[54] - The company received a letter from the Securities and Futures Commission (SFC) on February 27, 2019, requesting further information to assist in the review of the company's stock trading resumption[55] Regulatory Compliance - The company adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2019, which may impact future financial reporting[8] - The company has not reported any significant new product developments or market expansions during this period[4]

Financial Performance - Revenue for the Group decreased to approximately HK$92.76 million, down from approximately HK$116.19 million in the previous year, indicating a decrease of about 20.14%[48] - Profit attributable to owners of the Company was approximately HK$25.93 million, reflecting a decrease of approximately 51.25% compared to the previous year[48] - The Group's average loan balance decreased from approximately HK$974.70 million as of December 31, 2017, to approximately HK$897.42 million as of December 31, 2018, representing a decline of about 7.93%[48] - The Group's revenue fell from approximately HK$116.19 million to approximately HK$92.76 million, a decrease of about 20.1% year-over-year[53] - Profit attributable to the owners of the company was approximately HK$25.93 million, down approximately 51.25% compared to the previous year[53] - The profit attributable to owners of the Company decreased by approximately 51.25%, from approximately HK$53.18 million in 2017 to approximately HK$25.93 million in 2018, mainly due to decreased revenue and increased impairment losses[114] Loan and Interest Management - The average interest rate in the money lending business fell from approximately 11.89% per annum in 2017 to approximately 10.33% per annum in 2018[72] - The Group recorded a net interest margin of approximately 9.89% for 2018, down from approximately 10.93% in 2017[79] - The revenue from unsecured loans was HK$68.69 million in 2018, down from HK$79.21 million in 2017[78] - The revenue from secured loans was HK$24.05 million in 2018, down from HK$36.67 million in 2017[78] - The Group's pricing strategy was influenced by a low interest rate environment in the competitive money lending industry[80] Business Operations and Strategy - The Group plans to expand its loan portfolio by diversifying its customer base, particularly targeting individual and corporate customers from different market segments[61] - The Group intends to expand its customer base into Mainland China and Macau to enhance its money lending business amid local market competition[64] - The Group aims to maintain liquidity for its money lending business while exploring potential investment opportunities in bonds, debt instruments, and listed equity securities[63] - The securities related business remained stagnant during the year under review due to continuous industry challenges[49] - The Group's securities trading business experienced a revenue decline due to intense market competition, necessitating additional time to develop its customer base[62] - In February 2019, Asia Wealth Securities received approval to commence margin financing business, which is expected to provide a new revenue source in the future[62] Expenses and Cost Management - Administrative expenses decreased to approximately HK$33.73 million in 2018 from approximately HK$43.85 million in 2017[94] - The Group's total administrative expenses for 2018 were approximately HK$33.73 million, down from HK$43.85 million in 2017, indicating a reduction in overall operational costs[97] - Employment expenses decreased from approximately HK$33.70 million in 2017 to approximately HK$22.02 million in 2018, reflecting the absence of performance-related bonuses[97] - Other operating expenses increased from approximately HK$12.24 million in 2017 to approximately HK$17.58 million in 2018, mainly due to higher legal and professional fees[105] - Finance costs decreased significantly from approximately HK$9.39 million in 2017 to approximately HK$1.58 million in 2018, attributed to the full repayment of a loan during the year[110] Impairment and Losses - For the year ended December 31, 2018, the Group recorded an impairment loss on loans receivable of approximately HK$15.63 million, a significant increase from approximately HK$2.59 million in 2017, due to the application of a new impairment methodology[99] - Other gains decreased significantly from approximately HK$14.54 million in 2017 to approximately HK$1.19 million in 2018[86] Corporate Governance - The company complied with all provisions of the Corporate Governance Code throughout the year ended December 31, 2018[155] - The Board includes at least three independent non-executive Directors, representing at least one-third of the Board[166] - The company has adopted a code of conduct for securities transactions by directors, with no incidents of non-compliance noted during the year[156] - The Board is responsible for formulating the Group's long-term strategy and supervising management to ensure effective performance[157] - The company must ensure that one-third of the Directors retire by rotation at each annual general meeting[170] - The company has complied with GEM Listing Rules regarding the composition of the Board and the qualifications of independent non-executive Directors[171] Audit and Compliance - The audit committee held a total of 5 meetings during the year ended December 31, 2018[195] - The audit committee comprises four independent non-executive directors, including Mr. Choy Sze Chung Jojo as chairman[193] - The primary function of the audit committee is to monitor the integrity of the Company's financial statements and review financial and accounting policies[198] - RSM Hong Kong resigned as auditors on December 20, 2018, due to disagreements over audit fees, and Elite Partners CPA Limited was appointed as the new auditors[200] - The audit committee made recommendations to the Board regarding the appointment and re-appointment of external auditors after reviewing their scope of work and remuneration[197] Share Trading and Suspension - Trading in the shares of the Company has been suspended since November 24, 2017, and will remain suspended until further notice[143] - The company submitted documents on November 14, 2018, requesting the unconditional and immediate withdrawal of the suspension directive[149] - The company's shares have been suspended from trading since November 24, 2017, and will remain suspended until further notice[148] Financial Position - As of December 31, 2018, the Group had bank and cash balances of approximately HK$37.36 million, a decrease from approximately HK$202.02 million in 2017, primarily due to loan repayment[118] - The Group's net current assets amounted to approximately HK$548.07 million as of December 31, 2018, down from approximately HK$608.10 million in 2017, with a current ratio of approximately 173.86 times[121] - The Group had no loan notes and no interest-bearing loans as of December 31, 2018, compared to HK$150 million in interest-bearing loans in 2017[120] - The Group recorded an increase in net cash to approximately HK$34.34 million as of December 31, 2018, compared to approximately HK$28.3 million as of December 31, 2017, resulting in a negative gearing ratio of approximately -3.58%[132] - The Group did not hold any significant investments as of December 31, 2018[128] - There were no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended December 31, 2018[123] - The Group has no specific plans for material investments or capital assets as of December 31, 2018[125] - The Group's assets were not pledged as security for any liabilities as of December 31, 2018[131]