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

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

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