[Company Information and Declarations](index=1&type=section&id=I.%20Company%20Information%20and%20Declarations) [Company Overview and Board Statement](index=1&type=section&id=1.1%20Company%20Overview%20and%20Board%20Statement) First Credit Finance Group Limited announced its unaudited interim results for the six months ended June 30, 2025, with the Board assuming full responsibility for the accuracy and completeness of the announcement - The company announced its unaudited results for the six months ended June 30, 2025[3](index=3&type=chunk) - Board members include Executive Directors Ms. Lai Sze Yu and Mr. Tang Sik Chung, and Independent Non-executive Directors Mr. Wong Kin Ning and Mr. Wong Shui Yeung[4](index=4&type=chunk) - The Board collectively and individually assumes full responsibility for the information in this announcement, confirming its accuracy, completeness, and absence of misleading or fraudulent content[4](index=4&type=chunk) [GEM Listing Characteristics and Risk Warnings](index=2&type=section&id=1.2%20GEM%20Listing%20Characteristics%20and%20Risk%20Warnings) The GEM market, designed for SMEs, carries higher investment risks, with securities potentially experiencing significant market volatility and no guarantee of high liquidity - The GEM market is positioned for small and medium-sized companies, entailing **higher investment risks**[5](index=5&type=chunk)[9](index=9&type=chunk) - GEM securities may be subject to **significant market volatility** and do not guarantee high liquidity[6](index=6&type=chunk)[9](index=9&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever[7](index=7&type=chunk)[9](index=9&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=II.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=2.1%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue slightly increased, but a significant reduction in administrative expenses and impairment losses on loans receivable led to a substantial narrowing of the loss for the period Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Revenue | 974,512 | 912,469 | | Other income | 67 | 3,518 | | Other losses | (226) | (166,813) | | Administrative expenses | (1,827,187) | (2,619,878) | | Net impairment losses on loans receivable | (1,617,850) | (37,512,734) | | Operating loss | (2,470,684) | (41,751,941) | | Loss before tax | (2,496,685) | (41,804,195) | | Loss for the period attributable to owners of the Company | (2,496,685) | (41,804,195) | | Basic loss per share (HK cents) | (0.07) | (1.15) | - Loss for the period significantly decreased from **HKD 41,804,195** in 2024 to **HKD 2,496,685** in 2025, primarily due to a substantial reduction in impairment losses on loans receivable[10](index=10&type=chunk) - Basic loss per share decreased from **1.15 HK cents** in 2024 to **0.07 HK cents** in 2025[10](index=10&type=chunk) [Consolidated Statement of Financial Position](index=4&type=section&id=2.2%20Consolidated%20Statement%20of%20Financial%20Position) As at June 30, 2025, the company's total assets and net assets both decreased, with net current assets and the current ratio also declining, mainly due to a reduction in loans receivable Summary of Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Total non-current assets | 23,527,606 | 23,649,373 | | Total current assets | 14,390,354 | 16,707,585 | | Total current liabilities | 1,415,591 | 1,257,904 | | Net current assets | 12,974,763 | 15,449,681 | | Net assets | 36,502,369 | 39,099,054 | | Total equity | 36,502,369 | 39,099,054 | - Net current assets decreased from **HKD 15,449,681** as at December 31, 2024, to **HKD 12,974,763** as at June 30, 2025[13](index=13&type=chunk) - Loans receivable decreased from **HKD 12,293,518** as at December 31, 2024, to **HKD 11,620,910** as at June 30, 2025[13](index=13&type=chunk) [Consolidated Statement of Changes in Equity](index=5&type=section&id=2.3%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity decreased due to the comprehensive loss for the period, while share capital remained unchanged Summary of Consolidated Statement of Changes in Equity | Metric | June 30, 2025 (HKD) | January 1, 2024 (HKD) | | :--- | :--- | :--- | | Share capital | 72,576,000 | 72,576,000 | | Share premium | 356,661,862 | 356,661,862 | | Capital reserve | 141,829,615 | 141,829,615 | | Contributed surplus | 213,460,470 | 213,460,470 | | Reserve for financial assets at fair value through other comprehensive income | 18,000 | (530,000) | | Accumulated losses | (748,043,578) | (659,556,370) | | Total equity | 36,502,369 | 124,441,577 | - As at June 30, 2025, total equity was **HKD 36,502,369**, a decrease from **HKD 39,099,054** as at January 1, 2025, primarily due to a comprehensive loss of **HKD 2,596,685** for the period[15](index=15&type=chunk) - Share capital remained unchanged at **HKD 72,576,000** during the reporting period[15](index=15&type=chunk) [Consolidated Statement of Cash Flows](index=6&type=section&id=2.4%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities decreased, with zero cash flow from investing and financing activities, leading to a narrower net decrease in cash and cash equivalents Summary of Consolidated Statement of Cash Flows | Metric | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Net cash used in operating activities | (1,442,900) | (3,495,247) | | Net cash from investing activities | – | 1,368,601 | | Net cash used in financing activities | – | (122,402) | | Net decrease in cash and cash equivalents | (1,442,900) | (2,249,048) | | Cash and cash equivalents at end of period | 988,395 | 1,491,092 | - Net cash used in operating activities decreased from **HKD 3,495,247** in the same period of 2024 to **HKD 1,442,900** in the same period of 2025[18](index=18&type=chunk) - Net cash from investing and financing activities was **zero** in the first half of 2025, compared to net cash inflow from investing activities and net cash outflow from financing activities in the same period of 2024[18](index=18&type=chunk) - Cash and cash equivalents at the end of the period amounted to **HKD 988,395**, a decrease from **HKD 2,431,295** at the beginning of the period[18](index=18&type=chunk) [Notes to the Financial Statements](index=7&type=section&id=III.%20Notes%20to%20the%20Financial%20Statements) [Basis of Preparation and Adoption of Accounting Standards](index=7&type=section&id=3.1%20Basis%20of%20Preparation%20and%20Adoption%20of%20Accounting%20Standards) These interim financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, with consistent accounting policies, and the first-time application of HKAS 21 amendments had no significant impact - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and the GEM Listing Rules[20](index=20&type=chunk)[24](index=24&type=chunk) - Accounting policies are consistent with those used in the annual financial statements for the year ended December 31, 2024[21](index=21&type=chunk)[24](index=24&type=chunk) - The amendments to HKAS 21 'Lack of Exchangeability' were first applied, but had **no significant impact** on the Group's financial performance[23](index=23&type=chunk)[25](index=25&type=chunk) - As at the date of approval of the financial statements, the company's shares remain suspended from trading[22](index=22&type=chunk)[24](index=24&type=chunk) [Fair Value Measurement](index=8&type=section&id=3.2%20Fair%20Value%20Measurement) The carrying amounts of the Group's financial assets and liabilities approximate their fair values, with fair value measurements using a three-level hierarchy and transfers recognized on the date of event or circumstance changes - The carrying amounts of the Group's financial assets and financial liabilities approximate their respective fair values[28](index=28&type=chunk)[34](index=34&type=chunk) - Fair value measurements adopt a **three-level hierarchy**: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[29](index=29&type=chunk)[32](index=32&type=chunk) - The Group's policy is to recognize any transfers between the three levels on the date of the event or change in circumstances that caused the transfer[29](index=29&type=chunk)[32](index=32&type=chunk) [Segment Information](index=8&type=section&id=3.3%20Segment%20Information) All of the Group's revenue is derived from credit financing business in Hong Kong, primarily interest income from loans to customers, with no segment analysis presented due to integrated resources and no dispersed financial data - All of the Group's revenue is derived from credit financing business provided and arranged in Hong Kong[30](index=30&type=chunk)[33](index=33&type=chunk) - Revenue refers to interest income from loans provided by the Group to customers[30](index=30&type=chunk)[33](index=33&type=chunk) - No segment analysis or product and service information is presented due to the Group's integrated resources and lack of dispersed financial data[30](index=30&type=chunk)[33](index=33&type=chunk) [Revenue](index=9&type=section&id=3.4%20Revenue) For the six months ended June 30, 2025, the Group's revenue primarily consisted of interest income from loan financing, showing an increase compared to the same period last year Sources of Revenue | Source of Revenue | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Interest income from loan financing | 974,512 | 912,469 | - Interest income from impaired loans receivable was **nil** in both reporting periods[37](index=37&type=chunk) [Other Income and Losses](index=9&type=section&id=3.5%20Other%20Income%20and%20Losses) For the six months ended June 30, 2025, the Group's other income significantly decreased, while other losses also narrowed substantially, mainly due to reduced fair value losses on financial assets at fair value through profit or loss Other Income | Item | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Bank interest income | 67 | 3,518 | Other Losses | Item | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Realized gains on financial assets at fair value through profit or loss | – | 44,174 | | Fair value losses on financial assets at fair value through profit or loss | (226) | (210,987) | | **Total** | **(226)** | **(166,813)** | - Other losses significantly decreased from **HKD 166,813** in the same period of 2024 to **HKD 226** in the same period of 2025, primarily due to reduced fair value losses on financial assets at fair value through profit or loss[40](index=40&type=chunk) [Finance Costs](index=10&type=section&id=3.6%20Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs, primarily interest on bonds payable and lease liabilities, decreased compared to the same period last year Composition of Finance Costs | Item | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Interest on bonds payable | 21,790 | 42,384 | | Interest on lease liabilities | 4,211 | 9,870 | | **Total** | **26,001** | **52,254** | - Total finance costs decreased from **HKD 52,254** in the same period of 2024 to **HKD 26,001** in the same period of 2025[43](index=43&type=chunk) [Composition of Loss Before Tax](index=10&type=section&id=3.7%20Composition%20of%20Loss%20Before%20Tax) For the six months ended June 30, 2025, the Group's loss before tax was primarily influenced by impairment losses on loans receivable, employee benefit expenses, and directors' emoluments, with a significant reduction in impairment losses on loans receivable Key Deductions for Loss Before Tax | Item | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Depreciation of right-of-use assets | 21,767 | – | | Legal and professional fees | 11,304 | 991,660 | | Directors' emoluments | 1,120,177 | 1,206,720 | | Employee benefit expenses (excluding directors' emoluments) | 653,462 | 1,040,939 | | Net impairment losses on loans receivable | 1,617,850 | 37,512,734 | - Net impairment losses on loans receivable significantly decreased from **HKD 37,512,734** in the same period of 2024 to **HKD 1,617,850** in the same period of 2025[45](index=45&type=chunk) - Legal and professional fees significantly decreased from **HKD 991,660** in the same period of 2024 to **HKD 11,304** in the same period of 2025[45](index=45&type=chunk) [Income Tax Expense and Dividends](index=11&type=section&id=3.8%20Income%20Tax%20Expense%20and%20Dividends) For the six months ended June 30, 2025, the Group incurred no Hong Kong profits tax due to tax losses, and the directors did not recommend any interim dividend - The Group recorded tax losses in both reporting periods, resulting in **no provision for Hong Kong profits tax**[46](index=46&type=chunk)[51](index=51&type=chunk) - The directors did not recommend the payment of any interim dividend to shareholders for the six months ended June 30, 2025, and 2024[47](index=47&type=chunk)[52](index=52&type=chunk) [Loss Per Share](index=11&type=section&id=3.9%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share was 0.07 HK cents, a significant narrowing from 1.15 HK cents in the prior year, with diluted loss per share being the same due to no potential dilutive ordinary shares Loss Per Share | Metric | June 30, 2025 (HK cents) | June 30, 2024 (HK cents) | | :--- | :--- | :--- | | Basic loss per share | (0.07) | (1.15) | | Diluted loss per share | (0.07) | (1.15) | - Basic loss per share is calculated based on the loss attributable to owners of the Company of **HKD 2,496,685** (2024: **HKD 41,804,195**) and the weighted average number of ordinary shares in issue of **3,628,800,000** shares[48](index=48&type=chunk)[53](index=53&type=chunk) - Diluted loss per share is the same as basic loss per share as there were **no potential dilutive ordinary shares** in issue for the Company in both reporting periods[49](index=49&type=chunk)[54](index=54&type=chunk) [Property, Plant and Equipment](index=11&type=section&id=3.10%20Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group did not acquire any property, plant, and equipment - For the six months ended June 30, 2025, the Group did not acquire any property, plant, and equipment (2024: **nil**)[50](index=50&type=chunk)[55](index=55&type=chunk) [Loans Receivable](index=12&type=section&id=3.11%20Loans%20Receivable) As at June 30, 2025, the Group's total loans receivable slightly increased, but the impairment loss provision remained stable, with strict credit risk control and regular review of overdue balances, and impaired loans constituting the majority of the total Composition of Loans Receivable | Item | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Fixed-rate loans receivable | 559,770,855 | 559,787,199 | | Accrued interest receivable | 98,176,353 | 97,214,767 | | **Total** | **657,947,208** | **657,001,966** | | Less: Individually assessed expected credit losses | (436,547,200) | (436,547,200) | | Collectively assessed expected credit losses | (115,053,741) | (115,053,741) | | Expected credit losses on accrued interest receivable | (94,725,357) | (93,107,507) | | **Classified as current** | **11,620,910** | **12,293,518** | - The effective interest rate for fixed-rate loans receivable ranges from **8.5% to 46%**[57](index=57&type=chunk)[58](index=58&type=chunk) - The Group strictly controls unrecovered loans receivable to minimize credit risk, with management regularly reviewing overdue balances[59](index=59&type=chunk)[61](index=61&type=chunk) Credit Quality Analysis of Loans Receivable | Item | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Neither past due nor impaired | – | 105,830 | | Past due less than three months | – | 2,007,890 | | Past due over three months | 2,000,000 | – | | Impaired | 637,947,208 | 654,888,246 | | **Total** | **657,947,208** | **657,001,966** | - As at June 30, 2025, total impaired loans receivable amounted to **HKD 637,947,208**, representing the vast majority of total loans receivable[65](index=65&type=chunk) - The Group holds **no collateral** for loans receivable that are past due but not impaired[68](index=68&type=chunk)[70](index=70&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=14&type=section&id=3.12%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As at June 30, 2025, the Group held no financial assets at fair value through profit or loss, compared to a small amount of equity securities listed in Hong Kong as at December 31, 2024 Financial Assets at Fair Value Through Profit or Loss | Item | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Equity securities listed in Hong Kong | – | 226 | - As at December 31, 2024, the fair value measurement of these listed securities was recurring and determined using **Level 1 inputs**[73](index=73&type=chunk)[74](index=74&type=chunk) [Share Capital](index=14&type=section&id=3.13%20Share%20Capital) As at June 30, 2025, the company's authorized and issued and fully paid share capital both remained unchanged Share Capital Structure | Item | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Authorized share capital (250,000,000,000 ordinary shares of HKD 0.02 each) | 5,000,000,000 | 5,000,000,000 | | Issued and fully paid share capital (3,628,800,000 ordinary shares of HKD 0.02 each) | 72,576,000 | 72,576,000 | - Issued and fully paid share capital comprises **3,628,800,000** ordinary shares of **HKD 0.02** each, totaling **HKD 72,576,000**, which is the same as at December 31, 2024[76](index=76&type=chunk) [Related Party Transactions](index=15&type=section&id=3.14%20Related%20Party%20Transactions) For the six months ended June 30, 2025, the Group's total remuneration paid to key management personnel was HKD 1,120,177, a decrease from the same period last year Remuneration Paid to Key Management Personnel | Item | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Short-term employee benefits (including salaries, paid annual leave, and sick leave) | 1,105,177 | 1,191,720 | | Pension scheme contributions | 15,000 | 15,000 | | **Total** | **1,120,177** | **1,206,720** | - Total remuneration paid to key management personnel decreased from **HKD 1,206,720** in the same period of 2024 to **HKD 1,120,177** in the same period of 2025[81](index=81&type=chunk) [Contingent Liabilities](index=15&type=section&id=3.15%20Contingent%20Liabilities) As at June 30, 2025, the Group recorded no significant contingent liabilities - As at June 30, 2025, the Group recorded **no significant contingent liabilities** (December 31, 2024: nil)[83](index=83&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=16&type=section&id=4.1%20Business%20Review%20and%20Outlook) The Group continued to focus on Hong Kong's money lending business, maintaining a cautious lending strategy amid a slower-than-expected economic recovery and global geopolitical factors, with a focus on quality personal loan clients and debt collection for 2025 - The Group continues to focus on its money lending business in Hong Kong, providing both secured and unsecured loans to customers[85](index=85&type=chunk)[90](index=90&type=chunk) - Hong Kong's post-pandemic recovery has been slower than expected, with a deteriorating economic environment adversely affected by external factors such as US-China trade tensions, the Russia-Ukraine conflict, and US tariff policies[86](index=86&type=chunk)[90](index=90&type=chunk) - The Group adopted a conservative lending strategy, leading to a **decrease in interest income** in fiscal years 2023 and 2024[86](index=86&type=chunk)[90](index=90&type=chunk) - In 2025, the Group will focus resources on identifying **high-quality personal loan customers** and implementing stricter default risk control standards[88](index=88&type=chunk)[91](index=91&type=chunk) - The first half of the year will primarily focus on collecting outstanding loans in Hong Kong and China, with business expected to **rebound in the second half of 2025**[88](index=88&type=chunk)[91](index=91&type=chunk) - The Group will continue to strive to maintain revenue and credit quality, and closely monitor its capital base to ensure sufficient funding[94](index=94&type=chunk)[100](index=100&type=chunk) [Financial Review](index=17&type=section&id=4.2%20Financial%20Review) This section details the Group's financial performance during the review period, including revenue growth, improved net interest margin, significant reductions in other losses and various expenses, ultimately leading to a substantial narrowing of the loss for the period [Revenue](index=17&type=section&id=4.2.1%20Revenue) During the review period, the Group's revenue, primarily from interest income on loans in its money lending business, increased to approximately HKD 0.97 million, up from the same period last year - Revenue for the review period increased to approximately **HKD 0.97 million** (2024: approximately **HKD 0.91 million**), primarily from interest income on loans in the money lending business[95](index=95&type=chunk)[101](index=101&type=chunk) - The increase in revenue was mainly due to higher interest income from loan financing[96](index=96&type=chunk)[101](index=101&type=chunk) [Net Interest Margin](index=17&type=section&id=4.2.2%20Net%20Interest%20Margin) During the review period, the Group's net interest margin for its money lending business was approximately 11.1%, an improvement from 8.19% in the same period last year - The Group recorded a net interest margin of approximately **11.1%** in its money lending business during the review period[97](index=97&type=chunk)[102](index=102&type=chunk) - The net interest margin for the same period last year was approximately **8.19%**, indicating an improvement in net interest margin[98](index=98&type=chunk)[102](index=102&type=chunk) [Other Losses](index=17&type=section&id=4.2.3%20Other%20Losses) During the review period, the Group recorded approximately nil other losses, a significant reduction from approximately HKD 0.17 million in the same period of 2024, mainly due to decreased fair value losses on listed securities investments - Other losses recorded during the review period were approximately **HKD nil**, compared to approximately **HKD 0.17 million** in the same period of 2024[99](index=99&type=chunk)[103](index=103&type=chunk) - The decrease in other losses was primarily due to reduced fair value losses on investments in listed securities (i.e., financial assets at fair value through profit or loss)[99](index=99&type=chunk)[103](index=103&type=chunk) [Administrative Expenses](index=18&type=section&id=4.2.4%20Administrative%20Expenses) During the review period, the Group's administrative expenses decreased to approximately HKD 1.83 million, down from approximately HKD 2.62 million in the same period of 2024, mainly due to reduced employee expenses and depreciation - Administrative expenses primarily include employee expenses, office rental costs, and depreciation expenses[105](index=105&type=chunk)[110](index=110&type=chunk) - Administrative expenses decreased to approximately **HKD 1.83 million** during the review period, down from approximately **HKD 2.62 million** in the same period of 2024[106](index=106&type=chunk)[110](index=110&type=chunk) - The reduction in administrative expenses was mainly due to decreased employee expenses and depreciation expenses[106](index=106&type=chunk)[110](index=110&type=chunk) [Impairment Losses on Loans Receivable](index=18&type=section&id=4.2.5%20Impairment%20Losses%20on%20Loans%20Receivable) During the review period, the Group's impairment losses on loans receivable significantly decreased to approximately HKD 1.62 million, compared to approximately HKD 37.51 million in the same period of 2024, with impairment assessments based on historical experience, economic conditions, and forward-looking information using individual and collective approaches - Impairment losses on loans receivable during the review period were approximately **HKD 1.62 million**, a significant reduction from approximately **HKD 37.51 million** in the same period of 2024[108](index=108&type=chunk)[111](index=111&type=chunk) - Expected Credit Loss (ECL) assessment is based on historical credit loss experience, adjusted for debtor-specific factors, general economic conditions, and forward-looking information[107](index=107&type=chunk)[111](index=111&type=chunk) - The Group conducts collective assessments at least quarterly and individual assessments monthly, considering probability of default and loss given default[109](index=109&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)[119](index=119&type=chunk) [Other Operating Expenses](index=19&type=section&id=4.2.6%20Other%20Operating%20Expenses) During the review period, the Group's other operating expenses decreased to approximately nil, a significant reduction from approximately HKD 2.37 million in the same period of 2024, mainly due to decreased promotion and professional fees - Other operating expenses primarily include legal and professional fees, audit fees, and other general expenses[114](index=114&type=chunk)[120](index=120&type=chunk) - Other operating expenses decreased to approximately **HKD nil** during the review period, a significant reduction from approximately **HKD 2.37 million** in the same period of 2024[114](index=114&type=chunk)[120](index=120&type=chunk) - This was mainly due to reduced promotion and professional fees[114](index=114&type=chunk)[120](index=120&type=chunk) [Finance Costs](index=19&type=section&id=4.2.7%20Finance%20Costs) During the review period, the Group's finance costs decreased to approximately HKD 0.03 million, down from approximately HKD 0.05 million in the same period of 2024, primarily including interest on lease liabilities and bonds payable - Finance costs primarily include interest on lease liabilities and interest on bonds payable[115](index=115&type=chunk)[121](index=121&type=chunk) - Finance costs decreased to approximately **HKD 0.03 million** during the review period, down from approximately **HKD 0.05 million** in the same period of 2024[115](index=115&type=chunk)[121](index=121&type=chunk) [Loss for the Period](index=19&type=section&id=4.2.8%20Loss%20for%20the%20Period) During the review period, the unaudited consolidated loss attributable to owners of the Company significantly narrowed to approximately HKD 2.50 million, a substantial improvement from approximately HKD 41.80 million in the same period of 2024, mainly due to reduced impairment losses on loans receivable and increased revenue - The unaudited consolidated loss attributable to owners of the Company was approximately **HKD 2.50 million**, a significant reduction from approximately **HKD 41.80 million** in the same period of 2024[116](index=116&type=chunk)[122](index=122&type=chunk) - The reduction in loss was primarily due to decreased impairment losses on loans receivable and increased revenue[116](index=116&type=chunk)[122](index=122&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=19&type=section&id=4.3%20Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) As at June 30, 2025, the Group had bank and cash balances of approximately HKD 1 million and no bank borrowings, with net current assets of approximately HKD 12.97 million and a current ratio of approximately 10.17 times, both lower than year-end 2024 due to reduced loans receivable - As at June 30, 2025, the Group's bank and cash balances were approximately **HKD 1 million** (December 31, 2024: approximately **HKD 2.43 million**)[117](index=117&type=chunk)[123](index=123&type=chunk) - There were **no bank borrowings** as at June 30, 2025, and December 31, 2024[118](index=118&type=chunk)[123](index=123&type=chunk) - Net current assets were approximately **HKD 12.97 million** (December 31, 2024: approximately **HKD 15.45 million**), with a current ratio of approximately **10.17 times** (December 31, 2024: approximately **13.28 times**)[125](index=125&type=chunk)[131](index=131&type=chunk) - The decrease in the current ratio was primarily due to a reduction in loans receivable for the six months ended June 30, 2025[125](index=125&type=chunk)[131](index=131&type=chunk) - The Group may undertake fundraising activities through applying for loans, credit facilities, or issuing equity shares/loan notes[126](index=126&type=chunk)[131](index=131&type=chunk) [Significant Investments and Asset Changes](index=20&type=section&id=4.4%20Significant%20Investments%20and%20Asset%20Changes) As at June 30, 2025, the Group held no significant investments exceeding 5% of total assets, with no major acquisitions or disposals of subsidiaries, associates, and joint ventures during the review period, and no specific future plans for significant investments or capital assets [Significant Investments Held](index=20&type=section&id=4.4.1%20Significant%20Investments%20Held) As at June 30, 2025, the Group held no significant investments exceeding 5% of its total assets - As at June 30, 2025, the Group held **no significant investments** exceeding **5%** of its total assets[127](index=127&type=chunk)[132](index=132&type=chunk) [Major Acquisitions and Disposals and Future Plans](index=20&type=section&id=4.4.2%20Major%20Acquisitions%20and%20Disposals%20and%20Future%20Plans) During the review period, the Group had no major acquisitions or disposals of subsidiaries, associates, and joint ventures, and no specific future plans for significant investments or capital assets - During the review period, the Group had **no major acquisitions or disposals** of subsidiaries, associates, and joint ventures[128](index=128&type=chunk)[133](index=133&type=chunk) - As at June 30, 2025, the Group had **no specific future plans** regarding significant investments or capital assets[128](index=128&type=chunk)[133](index=133&type=chunk) [Employee Information](index=20&type=section&id=4.5%20Employee%20Information) As at June 30, 2025, the Group had 6 employees, a decrease from year-end 2024, with total employee remuneration of approximately HKD 1.77 million, and ongoing training to enhance competitiveness - As at June 30, 2025, the Group had **6 employees** (December 31, 2024: **8 employees**)[129](index=129&type=chunk)[134](index=134&type=chunk) - Total employee remuneration (including directors' emoluments) for the six months ended June 30, 2025, was approximately **HKD 1.77 million** (2024: approximately **HKD 2.25 million**)[129](index=129&type=chunk)[134](index=134&type=chunk) - Remuneration policy is determined based on individual employee performance, qualifications, and experience, with reference to current market conditions, including fixed monthly salaries and discretionary year-end bonuses[129](index=129&type=chunk)[134](index=134&type=chunk) - The Group adopts an employee training and development policy, regularly providing training on the money lending industry, anti-money laundering, and anti-corruption[130](index=130&type=chunk)[134](index=134&type=chunk) [Pledge of Assets and Gearing Ratio](index=21&type=section&id=4.6%20Pledge%20of%20Assets%20and%20Gearing%20Ratio) As at June 30, 2025, the Group pledged approximately HKD 8 million in loans receivable as collateral for bonds, with a gearing ratio of 6.59, down from 8.62% at year-end 2024, reflecting a decrease in net debt [Pledge of the Group's Assets](index=21&type=section&id=4.6.1%20Pledge%20of%20the%20Group's%20Assets) As at June 30, 2025, the Group pledged approximately HKD 8 million in loans receivable as collateral for bonds issued during the period - As at June 30, 2025, the Group pledged a total of approximately **HKD 8 million** in loans receivable as collateral for bonds issued during the period (June 30, 2024: **HKD 8 million**)[135](index=135&type=chunk)[141](index=141&type=chunk) [Gearing Ratio](index=21&type=section&id=4.6.2%20Gearing%20Ratio) As at June 30, 2025, the Group recorded net debt of approximately HKD 2.4 million, with a gearing ratio of 6.59, down from 8.62% at year-end 2024 - The gearing ratio is calculated as net debt (total liabilities less bank and cash balances) divided by the sum of adjusted capital and net debt[136](index=136&type=chunk)[142](index=142&type=chunk) - The Group recorded net debt of approximately **HKD 2.4 million** as at June 30, 2025 (December 31, 2024: approximately **HKD 3.69 million**)[136](index=136&type=chunk)[142](index=142&type=chunk) - Consequently, as at June 30, 2025, the gearing ratio was **6.59** (December 31, 2024: **8.62%**), indicating a decrease in the ratio[136](index=136&type=chunk)[142](index=142&type=chunk) [Exchange Rate Risk](index=21&type=section&id=4.7%20Exchange%20Rate%20Risk) During the review period, the Group's primary money lending business in Hong Kong, with revenues and costs denominated in HKD, resulted in negligible exchange rate fluctuation risk, thus no financial instruments were used for hedging - The Group primarily engages in money lending business in Hong Kong, with revenues and costs mainly denominated in **HKD**[137](index=137&type=chunk)[143](index=143&type=chunk) - The Group faces **negligible exchange rate fluctuation risk**, and therefore no financial instruments were used for hedging during the review period[137](index=137&type=chunk)[143](index=143&type=chunk) [Share Option Scheme](index=21&type=section&id=4.8%20Share%20Option%20Scheme) As at June 30, 2025, the company had no share option scheme - As at June 30, 2025, the company had **no share option scheme**[138](index=138&type=chunk)[144](index=144&type=chunk) [Contingent Liabilities](index=21&type=section&id=4.9%20Contingent%20Liabilities) As at June 30, 2025, the Group had no significant contingent liabilities - As at June 30, 2025, the Group had **no significant contingent liabilities** (December 31, 2024: nil)[139](index=139&type=chunk)[145](index=145&type=chunk) [Directors' and Major Shareholders' Interests](index=21&type=section&id=4.10%20Directors'%20and%20Major%20Shareholders'%20Interests) As at June 30, 2025, no directors or chief executives held interests or short positions in the company's shares, related shares, or debentures, while major shareholder Xiao Guoliang held a 29.50% long position in the company's issued share capital [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=21&type=section&id=4.10.1%20Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As at June 30, 2025, to the best of the directors' knowledge, no directors or chief executives held any interests or short positions in the company's shares, related shares, or debentures of the company or its associated corporations - As at June 30, 2025, no directors or chief executives held any interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations[140](index=140&type=chunk)[146](index=146&type=chunk) [Major Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=22&type=section&id=4.10.2%20Major%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As at June 30, 2025, major shareholder Xiao Guoliang held a 29.50% long position in the company's issued share capital Major Shareholder's Long Position in the Company's Shares | Name | Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Xiao Guoliang | Beneficial owner | 1,070,400,000 | 29.50% | - Other than Xiao Guoliang, the directors are not aware of any other persons holding any interests or short positions in the company's shares or underlying shares[149](index=149&type=chunk)[153](index=153&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=22&type=section&id=4.11%20Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[150](index=150&type=chunk)[154](index=154&type=chunk) [Corporate Governance Practices](index=22&type=section&id=4.12%20Corporate%20Governance%20Practices) The company is committed to high corporate governance standards, applying the GEM Listing Rules' Corporate Governance Code, and despite the vacant Chairman position, the Board operates effectively - The company has applied the Corporate Governance Code in Appendix C1 of the GEM Listing Rules to maintain an effective Board, robust internal controls, and transparency and accountability[151](index=151&type=chunk)[155](index=155&type=chunk) - The position of Chairman of the Board has been vacant since March 9, 2020, leading to non-compliance with Corporate Governance Code provisions C.2.1 to C.2.9 and F.1.3[156](index=156&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) - Despite the vacant Chairman position, the Board continues to operate effectively and efficiently, with major decisions made by the full Board and daily operations overseen by the Chief Executive Officer[157](index=157&type=chunk)[160](index=160&type=chunk) [Non-Compliance with Listing Rules](index=23&type=section&id=4.13%20Non-Compliance%20with%20Listing%20Rules) Due to the retirement of an independent non-executive director, the company failed to meet GEM Listing Rules requirements regarding the number of independent non-executive directors, audit committee members, and remuneration committee chairman qualifications, and will seek suitable candidates promptly - Following the retirement of Dr. Fung Kam Man as an independent non-executive director, the company failed to comply with GEM Listing Rules 5.05(1) (at least three independent non-executive directors), 5.28 (at least three members on the audit committee), and 5.34 (remuneration committee chaired by an independent non-executive director)[159](index=159&type=chunk)[162](index=162&type=chunk) - The company will use its best endeavors to identify suitable candidates for independent non-executive directors as soon as practicable and within three months[164](index=164&type=chunk)[169](index=169&type=chunk) [Directors' Securities Transactions](index=24&type=section&id=4.14%20Directors'%20Securities%20Transactions) The company adopted a code of conduct for directors' securities transactions no less exacting than GEM Listing Rules, and all directors confirmed compliance with no breaches found during the review period - The company has adopted a code of conduct for directors' securities transactions with terms no less exacting than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[165](index=165&type=chunk)[170](index=170&type=chunk) - Following specific enquiries with all directors, each director confirmed compliance with the required standard of dealings and the code of conduct during the review period[165](index=165&type=chunk)[170](index=170&type=chunk) - No instances of non-compliance were noted by the company during the review period[165](index=165&type=chunk)[170](index=170&type=chunk) [Competing Interests](index=24&type=section&id=4.15%20Competing%20Interests) During the review period, no directors or their close associates held any business or business interests directly or indirectly competing with the Group's business, nor any other conflicts of interest - During the review period, no directors or their respective close associates held any business or business interests that compete or may compete directly or indirectly with the Group's business, or any other conflicts of interest with the Group[166](index=166&type=chunk)[171](index=171&type=chunk) [Suspension of Trading](index=24&type=section&id=4.16%20Suspension%20of%20Trading) The company's shares have been suspended from trading since November 24, 2017, as per SFC instructions, and will remain suspended indefinitely, with the resumption application still pending approval and no specific timeline available - The company's shares have been suspended from trading since November 24, 2017, as per the SFC's instructions, and will remain suspended until further notice[167](index=167&type=chunk)[172](index=172&type=chunk) - The Stock Exchange reserves its right to delist the company[174](index=174&type=chunk)[177](index=177&type=chunk) - The company's application for resumption of trading is currently pending approval, and the company is unable to provide any specific timeline for resumption at this stage[175](index=175&type=chunk)[177](index=177&type=chunk) [Audit Committee](index=25&type=section&id=4.17%20Audit%20Committee) As of this report date, the Audit Committee, comprising two independent non-executive directors, reviewed this report and the Group's unaudited condensed consolidated results, deeming the financial information prepared in compliance with applicable accounting standards and listing rules - The Audit Committee comprises two independent non-executive directors: Mr. Wong Shui Yeung (Chairman) and Mr. Wong Kin Ning[176](index=176&type=chunk)[178](index=178&type=chunk) - The Audit Committee has reviewed this report and the Group's unaudited condensed consolidated results for the review period[176](index=176&type=chunk)[178](index=178&type=chunk) - The Board believes that the financial information has been prepared in compliance with applicable accounting standards, the GEM Listing Rules, and other relevant legal requirements, with adequate disclosures made[176](index=176&type=chunk)[178](index=178&type=chunk)

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。 （於開曼群島註冊成立並於百慕達存續之有限公司） （股份代號：8215） 香港，二零二五年八月十八日 於本公告日期，董事會由執行董事賴思妤女士及鄧錫聰先生，以及獨立非執行董事黃健 寧先生及黃瑞洋先生組成。 董事會會議通告 第一信用金融集團有限公司（「本公司」）董事（「董事」）會（「董事會」）僅此公 佈，將於二零二五年八月二十九日（星期五）召開董事會會議，藉以（其中包括）考慮 及批准本公司及其附屬公司截至二零二五年六月三十日止六個月之未經審核中期業績及 其發佈，以及考慮派發中期股息（如有）。 承董事會命 第一信用金融集團有限公司 執行董事 鄧錫聰 ...

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，並明確表示概不會就本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立並於百慕達存續之有限公司） （股份代號：8215） (1)停牌最新進展之更新資料及 (2)繼續暫停股份買賣 本定期公告乃由第一信用金融集團有限公司（「本公司」，連同其附屬公司統稱「本 集團」）根據GEM上市規則第17.26A條而作出。 茲提述本公司日期為二零一七年十一月二十四日、二零一八年八月一日、二零 一八年十一月一日、二零一九年二月一日、二零一九年五月二日、二零一九年六月 二十四日、二零一九年八月一日、二零一九年十一月一日、二零二零年一月三十一 日、二零二零年四月二十九日、二零二零年七月三十一日、二零二零年十月三十日、 二零二一年二月一日、二零二一年四月三十日、二零二一年七月三十日、二零二一 年十月二十九日、二零二二年一月二十八日、二零二二年四月二十八日、二零二二 年七月二十八日、二零二二年十月二十八日、二零二三年一月二十七日、二零二三 年四月二十七日、二零二三年七月二十七日、二零 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 第 1 頁 共 10 頁 v 1.1.1 公司名稱: 第一信用金融集團有限公司 呈交日期: 2025年8月5日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08215 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 250,000,000,000 | HKD | | 0.02 | HKD | | 5,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 250,000,000,000 | HKD | | 0.02 | HKD | | 5,00 ...

Financial Performance - The Group's revenue for the year ended December 31, 2024, was approximately HK$1.83 million, representing a decrease of approximately 71.18% from HK$6.35 million for the year ended December 31, 2023[27]. - The decrease in revenue was mainly due to a reduction in accrued interest from credit-impaired loans receivables during the year[28]. - The Group recorded a consolidated loss attributable to owners of approximately HK$85.99 million for the year ended 31 December 2024, a decrease from approximately HK$152.95 million in 2023, primarily due to a significant decrease in impairment on loans and interest receivables[70][71]. - The Group's loan balance decreased from approximately HK$96.59 million as of December 31, 2023, to approximately HK$12.29 million as of December 31, 2024, representing a decline of about 87.3%[17]. - The Group's bank and cash balances were approximately HK$2.43 million as of December 31, 2024, indicating adequate funds to maintain operations under the current economic environment[21]. - The net current assets of the Group amounted to approximately HK$15.45 million as of 31 December 2024, a decrease from approximately HK$97.46 million in 2023, resulting in a current ratio of approximately 13.28 times compared to 50.55 times in 2023[75]. - The Group has maintained a zero gearing ratio as of 31 December 2024, with net cash of approximately HK$2.43 million[89]. Loan Management and Strategy - The Company adopted a more cautious approach to granting new loans due to a negative outlook on the local economy, leading to a decrease in interest income during the 2023 and 2024 fiscal years[18]. - The Company plans to focus on identifying high-quality individual customers for personal loans in 2025, implementing more stringent criteria to control default risk[20]. - The conservative lending strategy adopted by the Company has been a response to the adverse impacts of the global economic recession on its business and profitability[19]. - The Group's focus remains on conducting money lending business, providing both secured and unsecured loans to a diverse customer base[17]. - The Company will prioritize efforts on loan repayment collection through the Credit Control Department and debt collection agencies in Hong Kong and the PRC in the first half of 2025[20]. - The Group aims to focus resources on developing quality personal loans and will implement stricter standards in customer selection to control default risks[23]. Impairment and Credit Risk - The Group recorded a reversal of impairment loss on loans receivables of approximately HK$7.03 million for the year ended December 31, 2024, compared to an impairment loss of approximately HK$137.07 million in 2023[48]. - The impairment loss on interests receivables was approximately HK$90.95 million for the year ended December 31, 2024, compared to HK$2.16 million for the corresponding period in 2023[49]. - The expected credit loss (ECL) on individual assessment for loans was HK$61,174,000 in 2024, down from HK$130,223,000 in 2023, while the collective assessment showed a reversal of HK$68,208,000 in 2024 compared to an ECL of HK$6,846,000 in 2023[61]. - The Group conducts collective assessments on impairment allowances for loans and interests receivables at least quarterly, categorizing them by loan types to calculate ECL based on credit risk characteristics[52]. - Monthly individual assessments are also performed for impairment allowances, considering factors such as expected recovery dates and the fair value of collateral[53]. - Credit risk assessments are conducted before advancing loans, including identity checks and financial background checks on borrowers and guarantors[57]. - The Group employs a "two eyes" process for credit approval, requiring higher-level approvals based on transaction size and nature[58]. - The Group actively monitors loan repayment statuses and enhances collection procedures, including direct communication with customers[59]. Corporate Governance - The Company has complied with the GEM Listing Rules regarding the composition of the Board, which includes at least three independent non-executive Directors, representing at least one-third of the Board[115]. - All independent non-executive Directors have confirmed their independence in accordance with Rule 5.09 of the GEM Listing Rules[116]. - The Board is responsible for the Group's long-term strategy and significant transactions, ensuring effective performance of management duties[113]. - The Company is committed to maintaining statutory and regulatory standards of corporate governance, applying principles from the Corporate Governance Code[105]. - The Board has delegated day-to-day management to executive Directors and management staff, who regularly review financial results and performance[118]. - The Company has mechanisms in place to ensure Board independence, including annual assessments of independent non-executive Directors[144]. - The Company ensures that adequate information is provided to Directors in a timely manner before meetings to facilitate informed decision-making[138]. Committees and Meetings - The audit committee held two meetings during the year ended December 31, 2024[150]. - The audit committee is composed of three independent non-executive Directors: Mr. Wong Shui Yeung, Dr. Fung Kam Man, and Mr. Wong Kin Ning[149]. - The nomination committee, comprising three independent non-executive Directors, held two meetings during the year ended December 31, 2024[160]. - The remuneration committee held two meetings during the year ended December 31, 2024, with all members attending both meetings[178]. - The credit committee held one meeting during the year ended December 31, 2024, with all members present[186]. - The compliance committee held two meetings during the year ended December 31, 2024, with full attendance from all members[191]. - The credit review committee held one meeting during the year ended December 31, 2024, with full attendance from all members[200]. Trading Status and Regulatory Compliance - The Company has been suspended from trading since November 24, 2017, and will remain suspended until further notice[97]. - As of January 28, 2025, the Company is actively communicating with the SFC to address concerns and expedite the resumption of trading, but no concrete timeframe for resumption can be provided at this stage[100]. - The Company has issued multiple announcements regarding its trading status and compliance with GEM Listing Rules from August 2018 to January 2025[98]. - The compliance committee reviews and monitors the training and professional development of Directors and senior management[186]. - The compliance committee identified no material compliance issues during the review year and made several recommendations to the Board regarding internal control and corporate governance[195].

Financial Performance - Revenue for the year ended December 31, 2024, was approximately HK$1.83 million, representing a decrease of approximately 71.18% from HK$6.35 million for the year ended December 31, 2023[28]. - The Group recorded a consolidated loss attributable to owners of approximately HK$85.99 million for the year ended 31 December 2024, a decrease from approximately HK$152.95 million for the year ended 31 December 2023, primarily due to a significant decrease in impairment on loans and interest receivables[71]. - The net interest margin for the year ended December 31, 2024, was approximately 3.74%, down from approximately 12.00% for the previous year[35]. - Unsecured loans' net interest margin decreased from approximately 13.78% in 2023 to approximately 5.90% in 2024[37]. - The Group's other income increased from approximately HK$30,000 for the year ended December 31, 2023, to approximately HK$3.91 million for the year ended December 31, 2024[40]. - The Group recorded other gains of approximately HK$0.87 million for the year ended December 31, 2024, compared to a loss of approximately HK$4.53 million for the year ended December 31, 2023[41]. Loan Activity and Management - The Group's loan balance decreased from approximately HK$96.59 million as of December 31, 2023, to approximately HK$12.29 million as of December 31, 2024, indicating a significant reduction in lending activity[18]. - The Company adopted a more cautious approach to granting new loans due to a deteriorating economic environment, leading to a decrease in interest income during the 2023 and 2024 fiscal years[19]. - The Company plans to focus on identifying high-quality individual customers for personal loans in 2025, implementing more stringent criteria for customer selection to mitigate default risks[21]. - The Group aims to focus resources on developing personal loans for quality individual clients by implementing stricter customer selection criteria[24]. - The Group will continue to monitor credit risk and modify credit assessments as necessary to manage loan receivables[29]. - The total expected credit loss (ECL) on loans receivables for 2024 was approximately (HK$7.03 million), compared to HK$137.07 million for 2023, indicating a significant improvement in credit quality[62]. Economic Environment and Strategy - The management is confident that the Group will navigate through the global economic recession and reach an economic recovery stage in the near future[20]. - The post-COVID recovery in Hong Kong was short-lived, impacting the Group's business and profitability negatively[19]. - The Company is implementing various budget control measures to manage expenses effectively[22]. - The Company plans to maintain adequate funding through various means to capture potential opportunities in the market[27]. Corporate Governance - The Company has complied with the GEM Listing Rules regarding the composition of the Board, which includes at least three independent non-executive Directors, representing at least one-third of the Board[116]. - The Board consists of two executive Directors and three independent non-executive Directors, with independent Directors representing more than one-third of the Board[123]. - The Company has adopted a code of conduct for securities transactions by Directors, with no incidents of non-compliance reported during the year[109]. - The Board is responsible for the strategic development of the company, aiming to maximize long-term shareholder value while balancing broader stakeholder interests[115]. - The Company has maintained sound corporate governance practices, applying principles from the Corporate Governance Code to ensure effective Board operations and transparency[106]. Compliance and Risk Management - The compliance committee was established in 2010 to ensure compliance with relevant laws and regulations, including the Money Lenders Ordinance and GEM Listing Rules[188]. - The compliance committee identified no material compliance issues during the review year and made several recommendations to the Board regarding internal control and corporate governance[196]. - The credit committee was formed in 2007 to manage credit risk and operations, approving and overseeing the Group's credit policy[186]. - The credit review committee conducts periodic reviews of loan cases based on credit risk reports[197]. Operational Efficiency - Administrative expenses decreased to approximately HK$4.85 million for the year ended December 31, 2024, compared to approximately HK$10.12 million for the year ended December 31, 2023[47]. - Other operating expenses decreased to approximately HK$3.72 million for the year ended December 31, 2024, compared to approximately HK$5.29 million for the year ended December 31, 2023, mainly due to reduced debt collection agency service fees[67]. - Finance costs for the year ended 31 December 2024 were approximately HK$0.09 million, a decrease from approximately HK$0.15 million for the year ended December 31, 2023[66]. Share Trading and Communication - Trading of the company's shares has been suspended since November 24, 2017, and will remain suspended until further notice[98]. - The company is actively communicating with the Securities and Futures Commission (SFC) to address concerns and expedite the resumption of trading, although a concrete timeline for resumption is not available at this stage[101].

[Introduction and GEM Market Characteristics](index=1&type=section&id=Introduction) The GEM market offers a high-risk listing platform for SMEs, with the Board confirming report accuracy [GEM Market Characteristics](index=1&type=section&id=GEM%20Characteristics) The GEM market offers a high-risk listing platform for SMEs, with the Board confirming report accuracy - The GEM market is designed for small and medium-sized companies, carrying **higher investment risks** than main board listed companies[1](index=1&type=chunk)[4](index=4&type=chunk) - GEM securities may experience **greater market volatility** and do not guarantee high liquidity[1](index=1&type=chunk)[4](index=4&type=chunk) - The company's directors assume full responsibility for the **accuracy, completeness, and non-misleading nature** of this report's content[3](index=3&type=chunk)[4](index=4&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2024, the company's loss significantly widened due to substantial revenue decline and increased loan impairment Key Data from Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Revenue | **912,469 HKD** | **17,159,460 HKD** | | Other income | **3,518 HKD** | **3,145 HKD** | | Other loss | (**166,813 HKD**) | (**2,155,283 HKD**) | | Administrative expenses | (**2,619,878 HKD**) | (**6,006,282 HKD**) | | Net impairment loss on loans receivables | (**37,512,734 HKD**) | (**31,430,381 HKD**) | | Operating loss | (**41,751,941 HKD**) | (**25,290,244 HKD**) | | Finance costs | (**52,254 HKD**) | (**102,873 HKD**) | | Loss before tax | (**41,804,195 HKD**) | (**25,393,117 HKD**) | | Income tax expense | – | (**9,792 HKD**) | | Loss and total comprehensive expenses for the period | (**41,804,195 HKD**) | (**25,402,909 HKD**) | | Basic loss per share (HK cents) | (**1.15 HK cents**) | (**0.70 HK cents**) | [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total and net assets decreased from 2023-end, driven by reduced loans and cash Key Data from Statement of Financial Position (As of June 30) | Metric | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Total non-current assets | **22,020,948 HKD** | **27,051,070 HKD** | | Total current assets | **62,408,954 HKD** | **99,431,611 HKD** | | Total current liabilities | **1,792,520 HKD** | **1,966,960 HKD** | | Net current assets | **60,616,434 HKD** | **97,464,651 HKD** | | Total assets less current liabilities | **82,637,382 HKD** | **124,515,721 HKD** | | Total non-current liabilities | – | **74,144 HKD** | | Net assets | **82,637,382 HKD** | **124,441,577 HKD** | | Share capital | **72,576,000 HKD** | **72,576,000 HKD** | | Reserves | **10,061,382 HKD** | **51,865,577 HKD** | | Total equity | **82,637,382 HKD** | **124,441,577 HKD** | - Loans receivables in non-current assets decreased from **5,030,122 HKD** at the end of 2023 to **zero** as of June 30, 2024[8](index=8&type=chunk) - Loans receivables in current assets decreased from **91,557,170 HKD** at the end of 2023 to **58,964,068 HKD** as of June 30, 2024[8](index=8&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For H1 2024, total equity decreased due to comprehensive loss, further expanding accumulated losses Key Data from Statement of Changes in Equity (For the six months ended June 30) | Metric | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Total equity at beginning of period | **124,441,577 HKD** | **279,602,892 HKD** | | Total comprehensive loss for the period | (**41,804,195 HKD**) | (**25,402,909 HKD**) | | Total equity at end of period | **82,637,382 HKD** | **254,199,983 HKD** | | Accumulated losses (end of period) | (**701,360,565 HKD**) | (**532,005,964 HKD**) | [Unaudited Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For H1 2024, cash and cash equivalents saw a net decrease from operating and financing activities Key Data from Statement of Cash Flows (For the six months ended June 30) | Metric | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Net cash used in operating activities | (**3,495,247 HKD**) | (**20,812,486 HKD**) | | Net cash from investing activities | **1,368,601 HKD** | **7,072,379 HKD** | | Net cash used in financing activities | (**122,402 HKD**) | (**834,986 HKD**) | | Net decrease in cash and cash equivalents | (**2,249,048 HKD**) | (**14,575,093 HKD**) | | Cash and cash equivalents at end of period | **1,491,092 HKD** | **5,261,618 HKD** | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. BASIS OF PREPARATION](index=7&type=section&id=1.%20BASIS%20OF%20PREPARATION) Interim financials follow HKAS 34 and GEM rules, consistent with 2023 annuals, unaudited, with shares suspended - Financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA and the GEM Listing Rules[11](index=11&type=chunk) - The accounting policies and calculation methods adopted are consistent with those used in the annual financial statements for the year ended December 31, 2023[11](index=11&type=chunk) - As of the report approval date, the company's shares remain **suspended from trading**[11](index=11&type=chunk) [2. ADOPTION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS](index=7&type=section&id=2.%20ADOPTION%20OF%20NEW%20AND%20REVISED%20HONG%20KONG%20FINANCIAL%20REPORTING%20STANDARDS) The Group adopted new HKFRS amendments this period, with no significant impact on performance or financial position - The Group first applied amendments to HKFRS 16, HKAS 1, HKAS 7, and HKFRS 7[11](index=11&type=chunk) - These amendments had **no significant impact** on the Group's performance, financial position, or financial statement disclosures for the current and prior periods[11](index=11&type=chunk) [3. FAIR VALUE MEASUREMENTS](index=8&type=section&id=3.%20FAIR%20VALUE%20MEASUREMENTS) Financial assets and liabilities approximate fair value, measured using a three-level hierarchy of inputs - The carrying amounts of the Group's financial assets and financial liabilities approximate their respective **fair values**[12](index=12&type=chunk) - Fair value measurements adopt a three-level hierarchy: Level 1 (quoted prices in active markets), Level 2 (directly or indirectly observable inputs), and Level 3 (unobservable inputs)[12](index=12&type=chunk) [4. SEGMENT INFORMATION](index=8&type=section&id=4.%20SEGMENT%20INFORMATION) For H1 2024, all revenue came from Hong Kong credit financing; no segment analysis presented; top five clients contributed **84.0%** - All Group revenue is derived from credit financing business provided and arranged in Hong Kong, with revenue being **loan interest income**[12](index=12&type=chunk) - Due to resource integration and no disaggregated financial information, no segment analysis or product/service information is presented[12](index=12&type=chunk) Customer Revenue Contribution (As of June 30, 2024) | Customer Type | Revenue Share | | :--- | :--- | | Five largest customers | **84.0%** | | Largest customer | **24.6%** | [5. REVENUE](index=9&type=section&id=5.%20REVENUE) For H1 2024, revenue significantly dropped to **912,469 HKD**, mainly from loan interest, with no impaired loan interest Revenue Composition (For the six months ended June 30) | Revenue Source | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Interest income from loan financing | **912,469 HKD** | **17,159,460 HKD** | - For the six months ended June 30, 2024, interest income from credit-impaired loans receivables was **zero HKD**, compared to **13,036,219 HKD** in the same period of 2023[14](index=14&type=chunk)[15](index=15&type=chunk) [6. OTHER INCOME](index=9&type=section&id=6.%20OTHER%20INCOME) For H1 2024, other income, primarily bank interest, slightly increased year-on-year Other Income (For the six months ended June 30) | Income Source | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Bank interest income | **3,518 HKD** | **3,145 HKD** | [7. OTHER LOSS](index=10&type=section&id=7.%20OTHER%20LOSS) For H1 2024, other loss significantly decreased due to reduced net fair value loss on FVTPL financial assets Other Loss Composition (For the six months ended June 30) | Loss Item | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Loss on disposal of property, plant and equipment | – | (**274,751 HKD**) | | Realized gain on financial assets at FVTPL | **44,174 HKD** | **239,876 HKD** | | Net fair value loss on financial assets at FVTPL | (**210,987 HKD**) | (**2,120,408 HKD**) | | Total other loss | (**166,813 HKD**) | (**2,155,283 HKD**) | [8. FINANCE COSTS](index=10&type=section&id=8.%20FINANCE%20COSTS) For H1 2024, finance costs decreased, mainly from interest on bonds payable and lease liabilities Finance Costs Composition (For the six months ended June 30) | Expense Item | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Interest on bonds payable | **42,384 HKD** | – | | Interest on lease liabilities | **9,870 HKD** | **102,873 HKD** | | Total finance costs | **52,254 HKD** | **102,873 HKD** | [9. LOSS BEFORE TAX](index=11&type=section&id=9.%20LOSS%20BEFORE%20TAX) For H1 2024, loss before tax was impacted by increased loan impairment, offset by reduced depreciation and employee benefits Loss Before Tax Deductions (For the six months ended June 30) | Item | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | – | **429,429 HKD** | | Depreciation of right-of-use assets | – | **696,431 HKD** | | Legal and professional fees | **991,660 HKD** | **1,177,652 HKD** | | Directors' remuneration | **1,206,720 HKD** | **1,215,000 HKD** | | Employee benefits expense (excluding directors' remuneration) | **1,040,939 HKD** | **2,968,448 HKD** | | Net impairment loss on loans receivables | **37,512,734 HKD** | **31,430,381 HKD** | [10. INCOME TAX EXPENSE](index=12&type=section&id=10.%20INCOME%20TAX%20EXPENSE) For H1 2024, no income tax expense was recorded, unlike prior year's deferred tax; HK profits tax uses a two-tiered system Income Tax Expense (For the six months ended June 30) | Tax Type | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Current tax – Hong Kong profits tax | – | – | | Deferred tax – expense | – | **9,792 HKD** | | Total income tax expense | – | **9,792 HKD** | - Hong Kong profits tax adopts a two-tiered system, with a tax rate of **8.25%** for the first **2 million HKD** of assessable profits and **16.5%** for the remainder[22](index=22&type=chunk)[24](index=24&type=chunk) [11. DIVIDENDS](index=12&type=section&id=11.%20DIVIDENDS) The Board recommends no interim dividends for shareholders for H1 2024 and 2023 - The directors do not recommend paying any interim dividends to shareholders for the six months ended June 30, 2024, and 2023[23](index=23&type=chunk)[25](index=25&type=chunk) [12. LOSS PER SHARE](index=13&type=section&id=12.%20LOSS%20PER%20SHARE) For H1 2024, basic loss per share widened to **1.15 HK cents** (vs. **0.70 HK cents** in 2023), with diluted loss being identical Loss Per Share (For the six months ended June 30) | Metric | 2024 (HK cents) | 2023 (HK cents) | | :--- | :--- | :--- | | Basic loss per share | (**1.15 HK cents**) | (**0.70 HK cents**) | | Diluted loss per share | (**1.15 HK cents**) | (**0.70 HK cents**) | - Basic loss per share is calculated based on the loss attributable to owners of the company of **41,804,195 HKD** (2023: **25,402,909 HKD**) and the weighted average number of ordinary shares in issue of **3,628,800,000** shares[26](index=26&type=chunk)[29](index=29&type=chunk) - As the company had no potential dilutive ordinary shares during the reporting period, diluted loss per share is **identical to basic loss per share**[27](index=27&type=chunk)[30](index=30&type=chunk) [13. PROPERTY, PLANT AND EQUIPMENT](index=13&type=section&id=13.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) For H1 2024, no property, plant, and equipment acquisitions or disposals occurred, unlike prior year - For the six months ended June 30, 2024, the Group made **no acquisitions** of property, plant, and equipment (2023: **645,500 HKD**)[28](index=28&type=chunk)[31](index=31&type=chunk) - For the six months ended June 30, 2024, the Group recorded **no loss on disposal** of property, plant, and equipment (2023: **274,751 HKD**)[28](index=28&type=chunk)[31](index=31&type=chunk) [14. LOANS RECEIVABLES](index=14&type=section&id=14.%20LOANS%20RECEIVABLES) As of June 30, 2024, total loans receivables decreased, impairment provisions rose, reducing net loans; impaired loans increased Loans Receivables Composition (As of June 30) | Item | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Fixed-rate loans receivables | **576,645,956 HKD** | **580,940,605 HKD** | | Accrued interest receivables | **96,751,727 HKD** | **96,101,425 HKD** | | Total loans receivables | **673,397,683 HKD** | **677,042,030 HKD** | | Less: Individually assessed expected credit losses | (**429,012,171 HKD**) | (**395,033,294 HKD**) | | Collectively assessed expected credit losses | (**183,261,444 HKD**) | (**183,261,444 HKD**) | | Expected credit losses on accrued interest receivables | (**2,160,000 HKD**) | (**2,160,000 HKD**) | | Net loans receivables | **58,964,068 HKD** | **96,587,292 HKD** | | Of which: Non-current | – | **5,030,122 HKD** | | Of which: Current | **58,964,068 HKD** | **91,557,170 HKD** | - The effective interest rate for fixed-rate loans receivables ranges from **8.5% to 46%**[33](index=33&type=chunk)[35](index=35&type=chunk) Loans Receivables Credit Quality Analysis (As of June 30) | Credit Quality | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Neither past due nor impaired (unsecured) | **2,073,959 HKD** | **21,180,690 HKD** | | Impaired | **671,323,724 HKD** | **655,830,162 HKD** | | Total | **673,397,683 HKD** | **677,042,030 HKD** | - As of June 30, 2024, total impaired loans receivables amounted to **671,323,724 HKD**, an increase from **655,830,162 HKD** at the end of 2023[36](index=36&type=chunk) [15. FINANCIAL ASSETS AT FVTPL](index=16&type=section&id=15.%20FINANCIAL%20ASSETS%20AT%20FVTPL) As of June 30, 2024, the company held no FVTPL financial assets, compared to **1,531,896 HKD** in 2023 Financial Assets at FVTPL (As of June 30) | Item | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Financial assets mandatorily at FVTPL – Hong Kong listed equity securities | – | **1,531,896 HKD** | | Analyzed as: Current assets | – | **1,531,896 HKD** | - These financial assets refer to investments in listed equity securities that offer return opportunities through dividend income and fair value gains, with **no fixed maturity or coupon rate**[39](index=39&type=chunk) [16. SHARE CAPITAL](index=16&type=section&id=16.%20SHARE%20CAPITAL) As of June 30, 2024, authorized and issued share capital remained unchanged at **5 billion HKD** and **72.58 million HKD** Share Capital Structure (As of June 30) | Item | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Authorized: 250,000,000,000 ordinary shares of **0.02 HKD** each | **5,000,000,000 HKD** | **5,000,000,000 HKD** | | Issued and fully paid: 3,628,800,000 ordinary shares of **0.02 HKD** each | **72,576,000 HKD** | **72,576,000 HKD** | [17. RELATED PARTY TRANSACTIONS](index=17&type=section&id=17.%20RELATED%20PARTY%20TRANSACTIONS) For H1 2024, total remuneration to key management personnel slightly decreased Key Management Personnel Remuneration (For the six months ended June 30) | Remuneration Item | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Short-term employee benefits (including salaries, paid annual leave and sick leave) | **1,191,720 HKD** | **1,200,000 HKD** | | Performance-related bonuses | – | – | | Pension scheme contributions | **15,000 HKD** | **15,000 HKD** | | Total | **1,206,720 HKD** | **1,215,000 HKD** | [18. CONTINGENT LIABILITIES](index=17&type=section&id=18.%20CONTINGENT%20LIABILITIES) As of June 30, 2024, the company recorded no significant contingent liabilities, consistent with 2023-end - As of June 30, 2024, the Group recorded **no significant contingent liabilities** (December 31, 2023: nil)[46](index=46&type=chunk)[47](index=47&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Prospects](index=18&type=section&id=BUSINESS%20REVIEW%20AND%20PROSPECTS) During the period, the company focused on money lending with a cautious strategy due to slow HK economic recovery, leading to decreased interest income; plans include stricter client screening and enhanced debt collection - The Group continues to focus on its money lending business, providing secured and unsecured loans to individuals, corporations, and foreign domestic helpers[49](index=49&type=chunk) - Slower-than-expected economic recovery in Hong Kong led the company to adopt a **more cautious approach** to new loan disbursements, resulting in decreased interest income for fiscal years 2023 and 2024[49](index=49&type=chunk) - The company plans to focus on acquiring **high-quality individual clients** for personal loans in 2024, implementing stricter client selection criteria and enhancing collection efforts by the credit control department and debt collection agents[49](index=49&type=chunk) [Business Outlook](index=19&type=section&id=BUSINESS%20OUTLOOK) The company will maintain money lending revenue and credit quality, monitoring capital to seize opportunities and maximize shareholder value - The Group remains committed to maintaining the **revenue and credit quality** of its money lending business[51](index=51&type=chunk) - The Group will continuously monitor its capital base to ensure **sufficient funds** are maintained to capitalize on various potential opportunities[51](index=51&type=chunk) [Financial Review](index=19&type=section&id=FINANCIAL%20REVIEW) During the period, poor financial performance saw significant revenue decline, narrowed net interest margin, and expanded loss [Revenue](index=19&type=section&id=REVENUE) During the period, revenue significantly decreased to approx **0.91 million HKD**, mainly from reduced impaired loan interest Revenue Changes (For the six months ended June 30) | Metric | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Revenue | approx **0.91 million HKD** | approx **17.16 million HKD** | - The decrease in revenue is primarily attributable to reduced accrued interest on **credit-impaired loans receivables** during the review period[51](index=51&type=chunk) [Net Interest Margin](index=19&type=section&id=NET%20INTEREST%20MARGIN) During the period, money lending net interest margin was approx **8.19%**, down from approx **13.44%** in prior year Net Interest Margin Changes (For the six months ended June 30) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Interest Margin | approx **8.19%** | approx **13.44%** | - The decline in net interest margin primarily reflects changes in the ratio of net interest income to the average balance of adjusted total loans receivables[51](index=51&type=chunk) [Other Loss](index=20&type=section&id=OTHER%20LOSS) During the period, other loss significantly decreased to approx **0.17 million HKD**, due to reduced fair value losses on listed securities Other Loss Changes (For the six months ended June 30) | Metric | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Other Loss | approx **0.17 million HKD** | approx **2.16 million HKD** | - The decrease in other loss is mainly attributable to reduced fair value losses on **financial assets at FVTPL**[52](index=52&type=chunk)[55](index=55&type=chunk) [Administrative Expenses](index=20&type=section&id=ADMINISTRATIVE%20EXPENSES) During the period, administrative expenses decreased to approx **2.62 million HKD**, mainly from lower employee and depreciation costs Administrative Expenses Changes (For the six months ended June 30) | Metric | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Administrative Expenses | approx **2.62 million HKD** | approx **6.01 million HKD** | - Administrative expenses primarily comprise employee expenses, office rental costs, and depreciation charges[53](index=53&type=chunk)[56](index=56&type=chunk) - The reduction in administrative expenses is mainly due to decreased employee expenses and depreciation charges[53](index=53&type=chunk)[56](index=56&type=chunk) [Impairment Loss on Loans Receivables](index=20&type=section&id=IMPAIRMENT%20LOSS%20ON%20LOANS%20RECEIVABLES) During the period, loan impairment loss increased to approx **37.51 million HKD** due to overdue loans; the Group uses combined collective and individual ECL assessments Impairment Loss on Loans Receivables Changes (For the six months ended June 30) | Metric | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Impairment Loss | approx **37.51 million HKD** | approx **31.43 million HKD** | - The increase in impairment loss is primarily due to a rise in **overdue loans receivables** during the review period[57](index=57&type=chunk)[58](index=58&type=chunk) - The Group conducts collective assessments at least quarterly and individual assessments monthly, considering factors such as probability of default, loss given default, expected recovery dates, and fair value of collateral[59](index=59&type=chunk)[60](index=60&type=chunk)[62](index=62&type=chunk) [Other Operating Expenses](index=21&type=section&id=OTHER%20OPERATING%20EXPENSES) During the period, other operating expenses decreased to approx **2.37 million HKD**, mainly from reduced promotion and professional fees Other Operating Expenses Changes (For the six months ended June 30) | Metric | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Other Operating Expenses | approx **2.37 million HKD** | approx **2.86 million HKD** | - Other operating expenses primarily include legal and professional fees, audit fees, and other general expenses[63](index=63&type=chunk) - The decrease in expenses is mainly attributable to reduced promotion and professional fees[63](index=63&type=chunk) [Finance Costs](index=22&type=section&id=FINANCE%20COSTS) During the period, finance costs decreased to approx **0.05 million HKD**, including lease and bond interest Finance Costs Changes (For the six months ended June 30) | Metric | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Finance Costs | approx **0.05 million HKD** | approx **0.10 million HKD** | - Finance costs primarily include interest on lease liabilities and interest on bonds payable[64](index=64&type=chunk) [Loss for the Period](index=22&type=section&id=LOSS%20FOR%20THE%20PERIOD) During the period, consolidated loss widened to approx **41.80 million HKD**, due to increased loan impairment and decreased revenue Loss for the Period Changes (For the six months ended June 30) | Metric | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Consolidated Loss Attributable to Owners | approx **41.80 million HKD** | approx **25.40 million HKD** | - The widened loss is primarily attributable to increased impairment losses on loans receivables and decreased revenue[64](index=64&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=22&type=section&id=LIQUIDITY,%20FINANCIAL%20RESOURCES%20AND%20CAPITAL%20STRUCTURE) As of June 30, 2024, bank and cash balances, net current assets, and current ratio decreased; the Board deems cash satisfactory; no bank borrowings, may seek external financing Liquidity Indicators (As of June 30) | Metric | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Bank and cash balances | approx **1.49 million HKD** | approx **3.74 million HKD** | | Net current assets | approx **60.62 million HKD** | approx **97.46 million HKD** | | Current Ratio | approx **34.82 times** | approx **50.55 times** | - The decrease in current ratio is mainly due to reduced loans receivables for the six months ended June 30, 2024[64](index=64&type=chunk) - The company has **no bank borrowings** and may raise funds through independent third-party and bank loans or by issuing equity/loan notes[64](index=64&type=chunk) [Significant Investments Held](index=23&type=section&id=SIGNIFICANT%20INVESTMENTS%20HELD) As of June 30, 2024, the company held no significant investments exceeding **5%** of total Group assets - As of June 30, 2024, the Group held **no significant investments** exceeding **5%** of its total assets[66](index=66&type=chunk)[69](index=69&type=chunk) [Material Acquisition and Disposal and Future Plans for Material Investments or Capital Assets](index=23&type=section&id=MATERIAL%20ACQUISITION%20AND%20DISPOSAL%20AND%20FUTURE%20PLANS%20FOR%20MATERIAL%20INVESTMENTS%20OR%20CAPITAL%20ASSETS) During the period, no material acquisitions or disposals of subsidiaries, associates, or joint ventures occurred; no future plans for material investments or capital assets as of June 30, 2024 - During the review period, the Group made **no material acquisitions or disposals** of subsidiaries, associates, or joint ventures[67](index=67&type=chunk)[69](index=69&type=chunk) - As of June 30, 2024, the Group had **no specific future plans** for material investments or capital assets[67](index=67&type=chunk)[69](index=69&type=chunk) [Information on Employees](index=23&type=section&id=INFORMATION%20ON%20EMPLOYEES) As of June 30, 2024, total employees decreased to **8**, with lower remuneration; compensation is performance-based, with regular training Employee Information (As of June 30) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Total Employees | **8** | **23** | | Total Employee Remuneration (For the six months ended June 30) | approx **2.25 million HKD** | approx **4.18 million HKD** | - The company's remuneration policy is determined based on individual employee performance, qualifications, and experience, referencing current market conditions, and includes fixed monthly salaries and discretionary year-end bonuses[70](index=70&type=chunk) - The Group adopts an employee training and development policy, providing regular training on the money lending industry, anti-money laundering, and anti-corruption[70](index=70&type=chunk) [Charges on the Group's Assets](index=24&type=section&id=CHARGES%20ON%20THE%20GROUP'S%20ASSETS) As of June 30, 2024, approx **8

[Company Information and Declarations](index=1&type=section&id=Company%20Information%20and%20Declarations) This section outlines the company's interim results, board composition, and directors' responsibilities for GEM market compliance [Announcement Overview and Board Composition](index=1&type=section&id=Announcement%20Overview%20and%20Board%20Composition) This announcement details First Credit Finance Group's H1 2024 unaudited results, board, and directors' responsibilities - This announcement covers First Credit Finance Group Limited's unaudited results for the six months ended June 30, 2024[1](index=1&type=chunk) - The Board of Directors comprises three executive directors, including CEO Ms. Ho Yuen Mei, and five independent non-executive directors[1](index=1&type=chunk) [GEM Market Characteristics and Directors' Responsibilities](index=2&type=section&id=GEM%20Market%20Characteristics%20and%20Directors'%20Responsibilities) The GEM market for SMEs carries high investment risks, with directors fully responsible for the report's accuracy - The GEM market targets small and medium-sized enterprises, carrying **higher investment risks and market volatility**[2](index=2&type=chunk)[5](index=5&type=chunk) - The company's directors collectively and individually bear full responsibility for the accuracy, completeness, and non-misleading nature of the report's information[4](index=4&type=chunk)[5](index=5&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including income, balance sheet, equity, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2024, the company saw significant revenue decline, expanded losses, and increased loss per share Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Metric | Six Months Ended June 30, 2024 (HKD) | Six Months Ended June 30, 2023 (HKD) | | :--- | :--- | :--- | | Revenue | 912,469 | 17,159,460 | | Other losses | (166,813) | (2,155,283) | | Administrative expenses | (2,619,878) | (6,006,282) | | Net impairment losses on loans receivable | (37,512,734) | (31,430,381) | | Operating loss | (41,751,941) | (25,290,244) | | Loss before tax | (41,804,195) | (25,393,117) | | Loss and total comprehensive expenses for the period attributable to owners of the Company | (41,804,195) | (25,402,909) | | Basic loss per share (HK cents) | (1.15) | (0.70) | - **Revenue decreased significantly by 94.7%** year-on-year, from HKD 17,159,460 to HKD 912,469[6](index=6&type=chunk) - **Net impairment losses on loans receivable increased by 19.3%** year-on-year, from HKD 31,430,381 to HKD 37,512,734[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets and net assets declined due to reduced loans receivable, decreasing net current assets and total equity Condensed Consolidated Statement of Financial Position Key Data | Metric | June 30, 2024 (HKD) | December 31, 2023 (HKD) | | :--- | :--- | :--- | | Total non-current assets | 22,020,948 | 27,051,070 | | Total current assets | 62,408,954 | 99,431,611 | | Total current liabilities | 1,792,520 | 1,966,960 | | Net current assets | 60,616,434 | 97,464,651 | | Total assets less current liabilities | 82,637,382 | 124,515,721 | | Net assets | 82,637,382 | 124,441,577 | | Total equity | 82,637,382 | 124,441,577 | - **Total current assets decreased by 37.2%**, from HKD 99,431,611 to HKD 62,408,954[9](index=9&type=chunk) - **Total equity decreased by 33.6%**, from HKD 124,441,577 to HKD 82,637,382[9](index=9&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For H1 2024, total equity decreased due to comprehensive loss, further expanding accumulated losses Condensed Consolidated Statement of Changes in Equity Key Data | Metric | June 30, 2024 (HKD) | January 1, 2023 (HKD) | | :--- | :--- | :--- | | Share capital | 72,576,000 | 72,576,000 | | Accumulated losses | (701,360,565) | (506,603,055) | | Total equity | 82,637,382 | 279,602,892 | - As of June 30, 2024, **accumulated losses increased to HKD 701,360,565**, compared to HKD 506,603,055 on January 1, 2023[10](index=10&type=chunk) - The **total comprehensive loss for the period was HKD 41,804,195**, leading to a corresponding reduction in total equity[10](index=10&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For H1 2024, operating activities consumed cash, and despite investment inflows, net cash and cash equivalents significantly decreased Condensed Consolidated Statement of Cash Flows Key Data | Metric | Six Months Ended June 30, 2024 (HKD) | Six Months Ended June 30, 2023 (HKD) | | :--- | :--- | :--- | | Net cash used in operating activities | (3,495,247) | (20,812,486) | | Net cash from investing activities | 1,368,601 | 7,072,379 | | Net cash used in financing activities | (122,402) | (834,986) | | Net decrease in cash and cash equivalents | (2,249,048) | (14,575,093) | | Cash and cash equivalents at end of period | 1,491,092 | 5,261,618 | - **Net cash used in operating activities significantly improved** year-on-year, decreasing from HKD 20,812,486 to HKD 3,495,247[11](index=11&type=chunk) - **Cash and cash equivalents at the end of the period were HKD 1,491,092**, a significant decrease from HKD 5,261,618 in the prior year period[11](index=11&type=chunk) [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the basis of preparation, accounting policies, fair value measurements, segment information, and other notes [Basis of Preparation and Accounting Policies](index=7&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) These interim financial statements comply with HKAS 34 and GEM Listing Rules, consistent with 2023, and incorporate new HKFRS amendments - The financial statements are prepared in accordance with **HKAS 34 "Interim Financial Reporting" and the GEM Listing Rules**[12](index=12&type=chunk) - This period marks the first application of amendments to HKFRS, including revisions to HKFRS 16, HKAS 1, HKAS 7, and HKFRS 7[12](index=12&type=chunk) - The company's shares remain suspended from trading[12](index=12&type=chunk) [Fair Value Measurement and Segment Information](index=8&type=section&id=Fair%20Value%20Measurement%20and%20Segment%20Information) Financial assets and liabilities approximate fair value using a three-level hierarchy; all revenue from Hong Kong credit financing is highly concentrated - Fair value measurement is categorized into three levels, with the carrying amounts of the company's financial assets and liabilities approximating their fair values[13](index=13&type=chunk) - All revenue is derived from **credit financing business in Hong Kong**, primarily loan interest income[13](index=13&type=chunk) - As of June 30, 2024, the **top five customers contributed 84.0% of revenue**, with the largest customer contributing 24.6%[13](index=13&type=chunk) [Revenue and Other Income/Losses](index=9&type=section&id=Revenue%20and%20Other%20Income%2FLosses) Current revenue is mainly loan interest, with zero from credit-impaired loans; other income is minimal, and other losses are from fair value losses Revenue and Other Income/Losses | Metric | Six Months Ended June 30, 2024 (HKD) | Six Months Ended June 30, 2023 (HKD) | | :--- | :--- | :--- | | Interest income from loan financing | 912,469 | 17,159,460 | | Interest income from credit-impaired loans receivable | Nil | 13,036,219 | | Bank interest income | 3,518 | 3,145 | | Net fair value loss on financial assets at fair value through profit or loss | (210,987) | (2,120,408) | | Total other losses | (166,813) | (2,155,283) | - **Interest income from loan financing decreased by 94.7%** year-on-year[14](index=14&type=chunk) - **Net fair value loss on financial assets at fair value through profit or loss significantly decreased by 89.9%** year-on-year[19](index=19&type=chunk) [Finance Costs and Taxation](index=10&type=section&id=Finance%20Costs%20and%20Taxation) Current finance costs, mainly bond and lease interest, decreased year-on-year, with no income tax expense Finance Costs and Income Tax Expense | Metric | Six Months Ended June 30, 2024 (HKD) | Six Months Ended June 30, 2023 (HKD) | | :--- | :--- | :--- | | Total finance costs | 52,254 | 102,873 | | Interest on bonds payable | 42,384 | – | | Interest on lease liabilities | 9,870 | 102,873 | | Income tax expense | – | 9,792 | - **Total finance costs decreased by 49.2%** year-on-year, primarily due to a significant reduction in interest on lease liabilities[21](index=21&type=chunk) - There was **no income tax expense** for the current period, compared to HKD 9,792 in the prior year period[23](index=23&type=chunk) [Loss Per Share and Dividends](index=13&type=section&id=Loss%20Per%20Share%20and%20Dividends) For H1 2024, basic and diluted loss per share increased to 1.15 HK cents due to expanded loss, with no interim dividend Loss Per Share | Metric | Six Months Ended June 30, 2024 (HK cents) | Six Months Ended June 30, 2023 (HK cents) | | :--- | :--- | :--- | | Basic loss per share | (1.15) | (0.70) | | Diluted loss per share | (1.15) | (0.70) | - **Basic loss per share increased from 0.70 HK cents to 1.15 HK cents**, reflecting an expanded loss[6](index=6&type=chunk)[27](index=27&type=chunk) - Diluted loss per share is the same as basic loss per share due to the **absence of potential dilutive ordinary shares**[28](index=28&type=chunk)[31](index=31&type=chunk) - The directors do not recommend the payment of any interim dividend[24](index=24&type=chunk)[26](index=26&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=Property%2C%20Plant%20and%20Equipment) For H1 2024, the company neither acquired nor disposed of property, plant, and equipment, nor recorded related losses - **No property, plant and equipment were acquired** in the current period, compared to total acquisitions of HKD 645,500 in the prior year period[29](index=29&type=chunk)[32](index=32&type=chunk) - **No loss on disposal of property, plant and equipment was recorded** in the current period, compared to HKD 274,751 in the prior year period[29](index=29&type=chunk)[32](index=32&type=chunk) [Loans Receivable](index=14&type=section&id=Loans%20Receivable) As of June 30, 2024, total loans receivable decreased, impairment provisions increased, reducing net loans receivable, and total impaired loans rose Loans Receivable Key Data | Metric | June 30, 2024 (HKD) | December 31, 2023 (HKD) | | :--- | :--- | :--- | | Fixed-rate loans receivable | 576,645,956 | 580,940,605 | | Accrued interest receivable | 96,751,727 | 96,101,425 | | Less: Individually assessed expected credit losses | (429,012,171) | (395,033,294) | | Less: Collectively assessed expected credit losses | (183,261,444) | (183,261,444) | | Less: Expected credit losses on accrued interest receivable | (2,160,000) | (2,160,000) | | Net loans receivable | 58,964,068 | 96,587,292 | | Total impaired loans | 671,323,724 | 655,830,162 | - **Net loans receivable decreased by 38.9%**, from HKD 96,587,292 to HKD 58,964,068[34](index=34&type=chunk) - **Individually assessed expected credit loss provisions increased by 8.6%** year-on-year, from HKD 395,033,294 to HKD 429,012,171[34](index=34&type=chunk) - **Total impaired loans increased by 2.4%**, from HKD 655,830,162 to HKD 671,323,724[37](index=37&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=16&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2024, the company held no financial assets at fair value through profit or loss, compared to HKD 1.53 million in 2023 Financial Assets at Fair Value Through Profit or Loss | Metric | June 30, 2024 (HKD) | December 31, 2023 (HKD) | | :--- | :--- | :--- | | Financial assets mandatorily at fair value through profit or loss | – | 1,531,896 | | －Hong Kong listed equity securities | – | 1,531,896 | - As of the current period end, there are **no financial assets at fair value through profit or loss**, indicating disposal or zero valuation of related investments[40](index=40&type=chunk) [Share Capital and Related Party Transactions](index=16&type=section&id=Share%20Capital%20and%20Related%20Party%20Transactions) Share capital structure is unchanged, consistent with 2023, and key management remuneration slightly decreased Share Capital | Metric | June 30, 2024 (HKD) | December 31, 2023 (HKD) | | :--- | :--- | :--- | | Authorized share capital (250,000,000,000 shares of HKD 0.02 each) | 5,000,000,000 | 5,000,000,000 | | Issued and fully paid share capital (3,628,800,000 shares of HKD 0.02 each) | 72,576,000 | 72,576,000 | Key Management Personnel Remuneration | Metric | Six Months Ended June 30, 2024 (HKD) | Six Months Ended June 30, 2023 (HKD) | | :--- | :--- | :--- | | Short-term employee benefits | 1,191,720 | 1,200,000 | | Pension scheme contributions | 15,000 | 15,000 | | Total | 1,206,720 | 1,215,000 | - **Total key management personnel remuneration slightly decreased by 0.68%** year-on-year[45](index=45&type=chunk) [Contingent Liabilities](index=17&type=section&id=Contingent%20Liabilities) As of June 30, 2024, the company recorded no significant contingent liabilities, consistent with 2023 - As of June 30, 2024, the Group had **no significant contingent liabilities**[47](index=47&type=chunk)[48](index=48&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the company's business, financial performance, liquidity, capital structure, and operational aspects [Business Review and Outlook](index=18&type=section&id=Business%20Review%20and%20Outlook) During the period, the company focused on Hong Kong money lending, adopting a conservative strategy due to economic slowdown, decreasing interest income; future plans include stricter client screening and debt collection - The company continues to focus on **money lending business in Hong Kong**, providing secured and unsecured loans to individuals, corporations, and foreign domestic helpers[50](index=50&type=chunk) - Due to slower-than-expected economic recovery in Hong Kong and global recession, the company adopted a **more conservative lending strategy**, leading to decreased interest income in FY2023 and FY2024[50](index=50&type=chunk) - The company plans to focus resources on identifying quality individual customers, implementing **stricter client selection criteria**, and enhancing debt collection in H2 2024[50](index=50&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) During the period, revenue declined, net interest margin narrowed, expenses decreased, but increased impairment losses led to an expanded loss Financial Review Key Data | Metric | Six Months Ended June 30, 2024 (HKD) | Six Months Ended June 30, 2023 (HKD) | | :--- | :--- | :--- | | Revenue | 910,000 (approx) | 17,160,000 (approx) | | Net interest margin | 8.19% | 13.44% | | Other losses | 170,000 (approx) | 2,160,000 (approx) | | Administrative expenses | 2,620,000 (approx) | 6,010,000 (approx) | | Impairment losses on loans receivable | 37,510,000 (approx) | 31,430,000 (approx) | | Other operating expenses | 2,370,000 (approx) | 2,860,000 (approx) | | Finance costs | 50,000 (approx) | 100,000 (approx) | | Loss for the period | 41,800,000 (approx) | 25,400,000 (approx) | - **Revenue decreased by approximately 94.7%** year-on-year, primarily due to reduced accrued interest on credit-impaired loans receivable[52](index=52&type=chunk) - **Net interest margin decreased from 13.44% to 8.19%** in the prior year period[52](index=52&type=chunk) - **Impairment losses on loans receivable increased by approximately 19.3%** year-on-year, mainly due to an increase in overdue loans receivable[59](index=59&type=chunk) - **Loss for the period expanded by approximately 64.6%** year-on-year, primarily impacted by increased impairment losses on loans receivable and decreased revenue[66](index=66&type=chunk)[70](index=70&type=chunk) [Revenue and Net Interest Margin](index=19&type=section&id=Revenue%20and%20Net%20Interest%20Margin) During the period, revenue significantly decreased due to lower accrued interest on credit-impaired loans, narrowing the net interest margin - During the review period, **revenue significantly decreased to approximately HKD 0.91 million** (2023: approximately HKD 17.16 million), primarily from loan interest income in the money lending business[52](index=52&type=chunk) - The decrease in revenue is mainly attributable to **reduced accrued interest on credit-impaired loans receivable**[52](index=52&type=chunk) - **Net interest margin was approximately 8.19%**, lower than approximately 13.44% in the prior year period[52](index=52&type=chunk) [Other Losses and Administrative Expenses](index=20&type=section&id=Other%20Losses%20and%20Administrative%20Expenses) Other losses decreased due to reduced fair value losses on listed securities, and administrative expenses declined due to lower employee and depreciation costs - **Other losses decreased to approximately HKD 0.17 million** (2023: approximately HKD 2.16 million), primarily due to reduced fair value losses on listed securities investments[53](index=53&type=chunk)[56](index=56&type=chunk) - **Administrative expenses decreased to approximately HKD 2.62 million** (2023: approximately HKD 6.01 million), mainly due to reduced employee expenses and depreciation costs[54](index=54&type=chunk)[57](index=57&type=chunk) [Impairment Losses on Loans Receivable](index=20&type=section&id=Impairment%20Losses%20on%20Loans%20Receivable) Impairment losses on loans receivable increased due to overdue loans, assessed by collective and monthly individual methods - **Impairment losses on loans receivable increased to approximately HKD 37.51 million** (2023: approximately HKD 31.43 million), primarily due to an increase in overdue loans receivable during the review period[59](index=59&type=chunk) - Impairment assessment combines **collective assessment** (based on loan type, probability of default, and loss given default) and **monthly individual assessment** (based on discounted cash flows and fair value of collateral)[60](index=60&type=chunk)[61](index=61&type=chunk)[63](index=63&type=chunk) [Other Operating Expenses and Finance Costs](index=21&type=section&id=Other%20Operating%20Expenses%20and%20Finance%20Costs) Other operating expenses decreased due to reduced fees, and finance costs declined due to lower lease interest - **Other operating expenses decreased to approximately HKD 2.37 million** (2023: approximately HKD 2.86 million), primarily due to reduced promotion and professional fees[64](index=64&type=chunk) - **Finance costs decreased to approximately HKD 0.05 million** (2023: approximately HKD 0.10 million), primarily comprising interest on lease liabilities and interest on bonds payable[65](index=65&type=chunk)[69](index=69&type=chunk) [Loss for the Period](index=22&type=section&id=Loss%20for%20the%20Period) The unaudited consolidated loss expanded, primarily due to increased impairment losses and decreased revenue - The **unaudited consolidated loss attributable to owners of the Company was approximately HKD 41.80 million** (2023: approximately HKD 25.40 million)[66](index=66&type=chunk)[70](index=70&type=chunk) - The primary reasons for the expanded loss are **increased impairment losses on loans receivable and decreased revenue**[66](index=66&type=chunk)[70](index=70&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=22&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2024, bank and cash balances, net current assets, and current ratio decreased due to reduced loans receivable; no bank borrowings, potential external financing Liquidity and Capital Structure Key Data | Metric | June 30, 2024 (HKD) | December 31, 2023 (HKD) | | :--- | :--- | :--- | | Bank and cash balances | 1,490,000 (approx) | 3,740,000 (approx) | | Net current assets | 60,620,000 (approx) | 97,460,000 (approx) | | Current ratio | 34.82 times (approx) | 50.55 times (approx) | - **Bank and cash balances decreased by 60.1%** year-on-year[71](index=71&type=chunk) - **Current ratio decreased from 50.55 times to 34.82 times**, primarily due to reduced loans receivable[71](index=71&type=chunk) - The company has **no bank borrowings** and may raise funds through loans, credit facilities, or issuance of equity/loan notes[71](index=71&type=chunk) [Significant Investments and Asset Disposals](index=23&type=section&id=Significant%20Investments%20and%20Asset%20Disposals) As of June 30, 2024, no significant investments (over 5% of assets), no major acquisitions/disposals, and no specific future investment plans - As of June 30, 2024, the company held **no significant investments exceeding 5% of total assets**[73](index=73&type=chunk)[76](index=76&type=chunk) - There were **no significant acquisitions or disposals of subsidiaries, associates, and joint ventures** during the review period[74](index=74&type=chunk)[76](index=76&type=chunk) - As of June 30, 2024, the company had **no specific future major investment or capital asset plans**[74](index=74&type=chunk)[76](index=76&type=chunk) [Employee Information](index=23&type=section&id=Employee%20Information) As of June 30, 2024, employee count and remuneration significantly decreased; compensation policies are performance-based with regular training Employee Information | Metric | June 30, 2024 (Number of employees) | December 31, 2023 (Number of employees) | | :--- | :--- | :--- | | Total number of employees | 8 | 23 | | Total employee remuneration (including directors' emoluments) | 2,250,000 (approx) | 4,180,000 (approx) | - **Total number of employees decreased by 65.2%**, from 23 to 8[77](index=77&type=chunk) - **Total employee remuneration decreased by approximately 46.1%** year-on-year[77](index=77&type=chunk) - The company's remuneration policy is based on **performance, qualifications, and experience**, referencing market conditions, offering fixed monthly salaries and discretionary year-end bonuses[77](index=77&type=chunk) [Pledge of Assets and Gearing Ratio](index=24&type=section&id=Pledge%20of%20Assets%20and%20Gearing%20Ratio) As of June 30, 2024, HKD 8 million in loans receivable were pledged; the company transitioned from net cash to net debt with a 0.36% gearing ratio - As of June 30, 2024, the company **pledged approximately HKD 8 million in loans receivable as collateral for bonds**[79](index=79&type=chunk)[83](index=83&type=chunk) Gearing Ratio | Metric | June 30, 2024 (HKD) | December 31, 2023 (HKD) | | :--- | :--- | :--- | | Net debt | 300,000 (approx) | (1,700,000) (approx) | | Gearing ratio | 0.36% (approx) | Not applicable | - The company transitioned from a net cash position at year-end 2023 to a **net debt position of approximately HKD 0.3 million** as of June 30, 2024, with a **gearing ratio of 0.36%**[80](index=80&type=chunk)[84](index=84&type=chunk) [Exchange Rate Risk and Contingent Liabilities](index=24&type=section&id=Exchange%20Rate%20Risk%20and%20Contingent%20Liabilities) The company's HKD-denominated Hong Kong money lending business faces minimal exchange rate risk, uses no hedging, and has no significant contingent liabilities - The company primarily engages in **money lending in Hong Kong**, with business revenue and costs denominated in HKD, resulting in **negligible exchange rate fluctuation risk**[81](index=81&type=chunk)[85](index=85&type=chunk) - **No financial instruments were used for exchange rate hedging** during the review period[81](index=81&type=chunk)[85](index=85&type=chunk) - As of June 30, 2024, the company had **no significant contingent liabilities**[82](index=82&type=chunk)[86](index=86&type=chunk) [Directors' and Major Shareholders' Interests](index=25&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) As of June 30, 2024, directors and chief executives held no interests in shares or debentures; major shareholder Xiao Guoliang held a 29.50% long position - As of June 30, 2024, **none of the company's directors or chief executives held any interests or short positions** in the company's shares, related shares, or debentures[87](index=87&type=chunk)[88](index=88&type=chunk) Major Shareholders' Shareholding | Name | Nature of interest | Number of ordinary shares held | Approximate percentage of issued share capital | | :--- | :--- | :--- | :--- | | Xiao Guoliang | Beneficial owner | 1,070,400,000 | 29.50% | [Corporate Governance Practices](index=26&type=section&id=Corporate%20Governance%20Practices) The company adheres to GEM Corporate Governance Code, but the vacant Chairman position leads to non-compliance with specific rules; the Board remains effective, with an Executive Director chairing the AGM - The company has complied with all code provisions of the Corporate Governance Code, but the **vacant Chairman position leads to non-compliance with rules C.2.1-C.2.9 and F.2.2**[91](index=91&type=chunk)[93](index=93&type=chunk) - The Board, composed of experienced directors, operates effectively, with **major decisions made by the Board as a whole** and daily operations overseen by the Chief Executive Officer[92](index=92&type=chunk) - Executive Director Mr. Lui Cheuk Fung **chaired the Annual General Meeting on June 21, 2024**, addressing shareholder questions[93](index=93&type=chunk)[95](index=95&type=chunk) - The company has adopted the **Model Code for Securities Transactions by Directors**, with all directors confirming compliance[96](index=96&type=chunk) [Suspension of Trading in Shares](index=28&type=section&id=Suspension%20of%20Trading%20in%20Shares) Shares have been suspended since Nov 24, 2017, and will remain so; the company is communicating with SFC for resumption, but no specific timetable is available - **Trading in the company's shares has been suspended since November 24, 2017**, and will remain suspended until further notice[98](index=98&type=chunk) - The company is actively engaging with the SFC to **resume share trading as soon as possible**[98](index=98&type=chunk) - **No specific timetable for resumption of trading can be provided** at present, as the resumption application is still under review[98](index=98&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee, composed of four independent non-executive directors, reviewed the report and interim results, confirming compliance with accounting standards, GEM rules, and legal requirements - The Audit Committee comprises **four independent non-executive directors**, with Mr. Wong Shui Yeung as Chairman[100](index=100&type=chunk)[101](index=101&type=chunk) - The Audit Committee has reviewed this report and interim results, confirming that the **financial information complies with applicable accounting standards, GEM Listing Rules, and legal requirements**, with adequate disclosures[100](index=100&type=chunk)[101](index=101&type=chunk)

Financial Performance - The Group's revenue for the year ended December 31, 2023, was approximately HK$6.35 million, representing a decrease of approximately 87.46% from HK$50.69 million for the year ended December 31, 2022[30]. - The revenue from personal loans decreased significantly from HK$43.18 million in 2022 to HK$1.58 million in 2023[36]. - The Group recorded a consolidated loss attributable to owners of approximately HK$152.95 million for the year ended December 31, 2023, a decrease from HK$182.48 million in 2022[89]. - Other income decreased from approximately HK$0.72 million in 2022 to approximately HK$0.03 million in 2023, primarily due to the adjustment of long outstanding temporary receipts[48]. - The Group recorded other losses of approximately HK$4.53 million in 2023, a decrease from approximately HK$29.54 million in 2022, mainly due to a reduction in fair value loss on financial assets[49]. Loan Portfolio and Risk Management - The average loan balance decreased from approximately HK$611.73 million as of December 31, 2022, to approximately HK$595.00 million as of December 31, 2023[21]. - The Group is focused on conducting money lending business by providing both secured and unsecured loans to individuals, corporations, and foreign domestic workers[21]. - The Group aims to maintain its loan portfolio while closely monitoring the repayment performance of its loans[22]. - The Group acknowledges the increased lending risks due to financial difficulties faced by customers[22]. - The Group will continue to monitor credit risk and adjust credit assessments as necessary to maintain revenue and credit quality[31]. - The Group recorded an impairment loss on loans receivables of approximately HK$137.07 million for the year ended December 31, 2023, compared to approximately HK$43.14 million for the corresponding period in 2022, indicating a significant increase in impairment losses[58]. - Expected credit loss (ECL) on individual assessment increased significantly to HK$130.22 million in 2023 from a recovery of HK$0.92 million in 2022[75]. - Total ECL for the year was HK$137.07 million, compared to HK$43.14 million in the previous year, indicating a substantial rise in credit risk[75]. Operational Efficiency - The Company is implementing various measures in budget control to manage expenses effectively[23]. - Administrative expenses decreased to approximately HK$10.12 million for the year ended December 31, 2023 from approximately HK$13.86 million for the year ended December 31, 2022, attributed to lower employment expenses and depreciation charges[55]. - Employment expenses specifically decreased from approximately HK$9.35 million in 2022 to approximately HK$7.04 million in 2023[56]. - Other operating expenses decreased to approximately HK$5.29 million in 2023 from HK$10.10 million in 2022, primarily due to reduced service fees for debt recovery[78]. - Finance costs decreased to approximately HK$0.15 million in 2023 from HK$0.55 million in 2022, reflecting lower interest expenses on lease liabilities and bonds[85]. Cash and Capital Management - The Group's bank and cash balances were approximately HK$3.74 million as of December 31, 2023, indicating adequate funds to maintain operations[23]. - The Group's capital base as of December 31, 2023, was approximately HK$3.74 million, indicating sufficient funds to maintain operations in the current economic environment[25]. - As of December 31, 2023, the Group's bank and cash balances were approximately HK$3.74 million, down from HK$19.84 million in 2022[93]. - The current ratio decreased to approximately 50.55 times in 2023 from 125.19 times in 2022, mainly due to an increase in bond payable[94]. - The Group recorded a net cash of approximately HK$3.74 million as of December 31, 2023, down from HK$17.93 million in 2022, resulting in a zero gearing ratio for both years[108]. Corporate Governance - The Company has complied with all corporate governance code provisions except for specific deviations noted in the report[132]. - The Board consists of at least three independent non-executive Directors, representing at least one-third of the Board[137]. - Each independent non-executive Director has confirmed their independence in accordance with GEM Listing Rules[138]. - The Board is responsible for the Group's long-term strategy and significant transactions, ensuring effective performance of management[135]. - The roles of Chairman and CEO are separate, but the position of Chairman has remained vacant since March 2020[149]. - The Board continues to function effectively despite the absence of a Chairman, with decisions made collectively[150]. - The company has service agreements with executive Directors for terms of no more than three years[148]. - The audit committee held five meetings during the year ended December 31, 2023, ensuring compliance with the CG Code[176]. - The nomination committee, comprising four independent non-executive Directors, held 2 meetings during the year, focusing on Board composition and succession planning[184]. - The remuneration committee, also consisting of four independent non-executive Directors, is responsible for reviewing and recommending Director remuneration[194]. Staff and Training - The Group employed a total of 12 full-time staff as of 31 December 2023, a reduction from 31 staff in 2022, with total employee remuneration decreasing to approximately HK$6.90 million[105]. - The total employee compensation for the year ended December 31, 2023, was approximately HK$6,900,000, a decrease from approximately HK$9,100,000 in 2022, with a total of 12 full-time employees as of the end of 2023[110]. - The Group has adopted a staff training and development policy to enhance competitiveness in the financial market[110]. Market Conditions - The global economic downturn has adversely affected many businesses in Hong Kong, impacting the loan repayment ability of some customers[22]. - The money lending industry is facing challenges due to the statutory interest rate cap being amended from 60% to 48% per annum since the end of 2022[29]. Trading and Investments - Trading in the shares of the Company has been suspended since November 24, 2017, and will remain suspended until further notice[115]. - The Company has not held any significant investments exceeding 5% of its total assets as of December 31, 2023[109]. - The Group did not hold any significant investments exceeding 5% of total asset value as of December 31, 2023[104]. - There were no material acquisitions or disposals during the year, and no specific future plans for significant investments or capital assets were noted[97].

Financial Performance - The Group's revenue for the year ended December 31, 2023, was approximately HK$6.35 million, representing a decrease of approximately 87.46% from HK$50.69 million for the year ended December 31, 2022[29]. - Revenue from personal loans dropped from HK$43.18 million in 2022 to HK$1.58 million in 2023, while corporate loans decreased from HK$3.56 million to HK$1.55 million[31]. - The Group recorded a net interest margin of approximately 12.00% for the year ended 31 December 2023, compared to 12.06% for the previous year[35][36][37]. - The net interest margin for unsecured loans increased from approximately 12.42% in 2022 to approximately 13.78% in 2023, while the margin for secured loans decreased from approximately 10.22% to 8.73%[38][39]. - The Group recorded other losses of approximately HK$4.53 million in 2023, a decrease from approximately HK$29.54 million in 2022, mainly due to reduced fair value losses on financial assets[45]. - The company reported a loss before tax of HK$152,934,687 for the year ended December 31, 2023, an improvement from a loss of HK$182,684,775 in 2022, indicating a reduction in losses by approximately 16.3%[112]. - Cash used in operating activities amounted to HK$24,834,979, significantly higher than HK$3,937,119 used in the previous year, reflecting increased operational challenges[112]. - Impairment loss on loans receivables reached HK$137,068,822, a substantial increase from HK$43,143,818 in 2022, highlighting deteriorating credit conditions[112]. Risk Management - The company operates in a market designed for small and mid-sized companies, which may carry higher investment risks[4]. - There is a risk that securities traded on GEM may be more susceptible to high market volatility compared to those on the Main Board[5]. - The Group will continue to adopt prudent risk management measures to balance return and risk in the long run[22]. - The decrease in revenue was mainly due to a reduction in accrued interest from credit-impaired loans receivables[29]. - The Group will modify its credit assessments and control measures as necessary to manage credit risk effectively[29]. - The Group performs collective assessment on impairment allowance for loans receivables at least quarterly, calculating expected credit losses (ECL) based on loan types and historical repayment performance[57]. - Individual assessment of impairment allowance is conducted monthly, considering factors such as expected recovery date and fair value of collateral[58]. - The Group assesses credit risk based on both quantitative and qualitative information, including historical experience and forward-looking data available without undue cost[149]. Compliance and Governance - The board of directors confirmed that the information in the annual report is accurate and complete in all material respects[7]. - The company emphasizes the importance of accurate and complete information in its annual report to avoid misleading statements[7]. - The Group has not received any service-related complaints during 2023, indicating a strong customer satisfaction level[60]. - There were no material breaches of relevant laws and regulations found during the year, demonstrating compliance with the Money Lenders Ordinance[60]. - The Group values customer privacy and complies with the Personal Data (Privacy) Ordinance, ensuring proper handling of personal data[60]. - An anti-fraud policy has been established to detect and prevent fraud, with a whistle-blowing policy allowing anonymous reporting of misconduct[61]. - The Group maintains high ethical standards and does not tolerate corruption, encouraging staff to report any unethical behavior[62]. - The Nomination Committee was established in 2011 and consists of four independent non-executive directors, ensuring compliance with corporate governance codes[188]. Financial Reporting and Audit - The Group's consolidated financial statements were prepared in compliance with Hong Kong Financial Reporting Standards (HKFRSs) and the Hong Kong Companies Ordinance[66]. - The audit concluded that the consolidated financial statements provide a true and fair view of the Group's financial position as of December 31, 2023[66]. - The overall presentation and structure of the consolidated financial statements were evaluated to ensure fair representation of underlying transactions[2]. - The Group's expected credit loss is calculated as the difference between all contractual cash flows due and the expected cash flows[178]. - The Group's current tax liability is calculated based on taxable profit for the year, which differs from loss before taxation due to various taxable and deductible items[196]. - The Group's liability for current tax is determined using tax rates that have been enacted or substantively enacted by the end of the reporting period[197]. Operational Changes - The average loan balance decreased from approximately HK$611.73 million as of December 31, 2022, to approximately HK$595.00 million as of December 31, 2023, reflecting a decline due to economic challenges[22]. - Administrative expenses decreased to approximately HK$10.12 million in 2023 from approximately HK$13.86 million in 2022, attributed to lower employment expenses and depreciation charges[47][48]. - Employment expenses decreased from approximately HK$9.35 million in 2022 to approximately HK$7.04 million in 2023[49]. - The Group's financial performance indicates a strategic focus on managing credit risk and optimizing operational costs[50]. - The Group plans to closely monitor its capital base to ensure adequate funding for potential opportunities[29]. Changes in Accounting Policies - The amendments to HKFRSs clarify the classification of liabilities as current or non-current, based on rights existing at the end of the reporting period[4]. - The application of the amendments will not result in reclassification of the Group's liabilities as of December 31, 2023[5]. - Right-of-use assets are depreciated from the commencement date to the end of their useful life if ownership is reasonably certain to be obtained[6]. - Lease liabilities are adjusted by interest accretion and lease payments after the commencement date[7]. - The Group's accounting policy change regarding long service payment scheme does not significantly impact the cumulative loss or equity components as of December 31, 2022[168].