2021 第一季度報告 2021 First Quarterly Report C M Y CM MY CY CMY K Capital Finance 1Q2021 cover_output.pdf 1 10/5/2021 上午11:43 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM乃為較聯交所上市之其他公司可能帶有較高投資風險之中小型公司而設之市 場。有意投資之人士應瞭解投資於該等公司之潛在風險，並應經過審慎周詳之考 慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣之證券可能會較於主板買賣之 證券承受較大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之 市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生 或因依賴該等內容而引致的任何損失承擔任何責任。 本報告所載資料包括遵照聯交所GEM證券上市規則（「GEM上市規則」）規定提供有 關首都金融控股有限公司（「本公司」）的資料，本公司各董事（「董事」）對本報告所 載資料共同及個別承擔全部責任，並在作出一切合理查詢後確 ...

Financial Performance - For the year ended December 31, 2020, the company recorded total revenue of approximately HKD 41,595,000, a decrease of about HKD 20,955,000 compared to HKD 62,550,000 in 2019, representing a decline of approximately 33.5%[17] - The decrease in total revenue was primarily due to the adverse economic environment caused by the COVID-19 pandemic and escalating tensions between China and the United States, which negatively impacted interest income from short-term financing services[17] - For the year ended December 31, 2020, the company recorded a loss attributable to owners of approximately HKD 75,952,000, an increase from HKD 36,849,000 in 2019, primarily due to a decrease in total revenue by approximately HKD 20,955,000 and an increase in expected credit loss provisions by approximately HKD 34,543,000[19] - The company's administrative and other expenses slightly increased from approximately HKD 41,372,000 in 2019 to approximately HKD 42,205,000 in 2020[18] - Revenue from short-term financing services was approximately HKD 39,197,000, down from HKD 60,997,000 in 2019, with a pre-tax operating loss of approximately HKD 6,755,000 compared to a profit of approximately HKD 41,630,000 in the previous year[20] Credit Loss Provisions - The expected credit loss provisions for the year amounted to approximately HKD 31,533,000, a significant increase compared to a reversal of approximately HKD 3,010,000 in 2019, driven by adverse economic conditions[18] Debt and Capital Management - As of December 31, 2020, the company's total liabilities were approximately HKD 428,255,000, a decrease from HKD 481,304,000 in 2019, resulting in a debt ratio of approximately 0.94 compared to 0.88 in 2019[27] - The company will consider adjusting the dividend amount paid to shareholders or issuing new shares to reduce debt as part of its capital structure management[28] - The company raised approximately HKD 9,600,000 from a placement of 105,264,000 new shares at a price of HKD 0.095 per share, with net proceeds used to repay short-term debts[36][43] - The company announced a rights issue on December 3, 2020, offering two new shares for every existing share at a subscription price of HKD 0.135, aiming to raise up to approximately HKD 75,900,000[39][40] - The actual net proceeds from the rights issue were approximately HKD 72,100,000, with plans to use these funds for various purposes including repayment of convertible bonds and establishing a new biotechnology business[43] Environmental Goals - The company aims to integrate environmental elements into daily operations and reduce greenhouse gas emissions as part of its environmental goals[63] - The total greenhouse gas emissions for the year ended December 31, 2020, were 108 tons, a decrease from 148 tons in 2019, resulting in a greenhouse gas density of 1.58 tons per employee, down from 1.97 tons in 2019[73] - The total indirect greenhouse gas emissions from electricity consumption were 87,559 kilograms in 2020, down from 120,225 kilograms in 2019[76] - The company implemented various energy-saving policies, encouraging employees to turn off lights during the day and maintain clean lighting fixtures[76] - The company aims to reduce paper usage by adopting the "3R" principle: Reduce, Reuse, and Recycle, promoting a paperless office environment[77] Employee and Workforce Management - As of December 31, 2020, the total number of employees was 68, a decrease from 75 in 2019[114] - Employee turnover for 2020 was 7, compared to 8 in 2019, indicating a slight improvement in retention[116] - The company maintains a balanced and diverse workforce, with 37 female and 31 male employees as of December 31, 2020[115] - The company has implemented a stock option plan since 2012 to attract and retain qualified employees[113] - The company is committed to providing a safe working environment and has established policies and procedures for employee safety[121] Corporate Governance - The company reported a stable operational structure with the same individual serving as both Chairman and CEO since December 1, 2015, which the board believes is effective for current business operations[163] - The company has adhered to all provisions of the GEM Listing Rules Appendix 15 Corporate Governance Code, with the exception of the separation of roles between the Chairman and CEO[163] - The management team includes experienced professionals with over 26 years in financial management and over 15 years in accounting and finance[161] - The board of directors consists of six members, including two executive directors and three independent non-executive directors[165] - The board is responsible for managing the overall business and enhancing shareholder value through strategic planning and oversight[167] Community Engagement - The company contributed approximately 229.5 hours to community activities in 2020, a significant increase from 36 hours in 2019[149] - The company has a commitment to support community needs and encourages employee participation in community health initiatives and charitable projects[148] Compliance and Risk Management - The company has established an anti-corruption policy to prevent bribery, fraud, and money laundering activities[143] - No confirmed violations or complaints related to bribery, extortion, fraud, or money laundering have been reported as of December 31, 2020[144] - The Audit Committee confirmed the effectiveness and adequacy of the group's risk management and internal control systems as of December 31, 2020[186]

2020 第三季度報告 THIRD QUARTERLY REPORT 2020 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM乃為較聯交所上市之其他公司可能帶有較高投資風險之中小型公司而設之市場。有意投資之人士應瞭 解投資於該等公司之潛在風險，並僅應經過審慎周詳之考慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣之證券可能會較於主板買賣之證券承受較大之市場波 動風險，同時無法保證在GEM買賣之證券會有高流通量之市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明， 並明確表示概不就因本報告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 本報告所載資料包括遵照聯交所GEM證券上市規則（「GEM上市規則」）規定提供有關首都金融控股有限公 司（「本公司」）的資料，本公司各董事（「董事」）對本報告所載資料共同及個別承擔全部責任，並在作出一切 合理查詢後確認，就彼等所深知及確信，本報告所載資料在各重大方面均屬準確完整，且無誤導或欺詐成 分，本報告並無遺漏任何其他事實，致使本報告所載任何聲明或本報告產生誤導。 1 首都金 ...

Financial Performance - The company reported a revenue of HKD 22,061,000 for the six months ended June 30, 2020, a decrease of 26.2% compared to HKD 29,965,000 in the same period of 2019[3]. - The net loss for the six months ended June 30, 2020, was HKD 33,186,000, compared to a net loss of HKD 22,259,000 for the same period in 2019, representing an increase in loss of 49.4%[4]. - The company reported a total comprehensive loss of HKD 43,395,000 for the six months ended June 30, 2020, compared to HKD 23,727,000 in the same period of 2019, an increase of 83.1%[4]. - For the six months ended June 30, 2020, the company reported a total comprehensive loss of HKD 43,506,000, compared to a loss of HKD 27,157,000 for the same period in 2019, representing an increase of 60.5% in losses year-over-year[7]. - The basic and diluted loss per share for the six months ended June 30, 2020, was HKD 12.42, compared to HKD 9.87 for the same period in 2019, indicating a worsening of 25.5%[3]. - Loss attributable to owners of the company was approximately HKD 34,233,000, compared to a loss of HKD 25,696,000 in 2019, indicating a 33.4% increase in losses year-over-year[33]. Assets and Liabilities - Total assets decreased from HKD 536,151,000 as of December 31, 2019, to HKD 494,579,000 as of June 30, 2020, reflecting a decline of 7.8%[6]. - The company’s equity attributable to owners decreased significantly from HKD 21,367,000 to HKD (12,530,000), indicating a negative shift in shareholder equity[6]. - The total equity attributable to owners of the company decreased to HKD (1,002,320,000) as of June 30, 2020, from HKD (954,319,000) at the end of June 2019[9]. - The total amount of customer loans was HKD 356,631,000 as of June 30, 2020, down from HKD 392,224,000 as of December 31, 2019, representing a decrease of approximately 9.1%[40]. - The net amount of customer loans after loss provisions was HKD 242,742,000, a decrease of approximately 16.1% from HKD 289,399,000 in the previous year[40]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2020, was HKD 23,397,000, a significant improvement from a cash outflow of HKD 31,845,000 in the prior year[10]. - The company issued new shares during the period, raising HKD 9,609,000, which contributed to its financing activities[10]. - The company’s financing activities resulted in a net cash outflow of HKD 36,010,000 for the six months ended June 30, 2020, compared to HKD 3,118,000 in the previous year[10]. - The company’s total reserves, including exchange reserves and capital reserves, were reported at HKD 280,749,000 as of June 30, 2020[9]. Expenses and Costs - The company’s administrative and other expenses decreased to HKD 16,747,000 for the six months ended June 30, 2020, down from HKD 18,221,000 in the previous year, a reduction of 8.1%[3]. - The company incurred employee costs (excluding directors' remuneration) of HKD 6,417,000 for the six months ended June 30, 2020, down 5.6% from HKD 6,797,000 in 2019[24]. - The income tax expense for the six months ended June 30, 2020, was HKD 765,000, a decrease of 71.1% from HKD 2,640,000 in the same period of 2019[26]. - The financial costs for the six months ended June 30, 2020, amounted to HKD 25,553,000, an increase of 3.3% from HKD 24,732,000 in the same period of 2019[23]. Credit Risk and Provisions - The expected credit loss provision for the six months was HKD 13,119,000, which increased from HKD 8,524,000 in the previous year, indicating a rise in credit risk[3]. - The expected credit loss provision for customer loans increased to HKD 113,889,000, representing 31.9% of the total loan amount, up from 26.2% in the previous year[45]. Share Capital and Equity - The average number of ordinary shares used to calculate basic loss per share for the six months ended June 30, 2020, was 275,724,000 shares, compared to 260,224,000 shares for the same period in 2019, reflecting a 5.9% increase in shares[33]. - The total issued and paid-up share capital as of June 30, 2020, was HKD 14,064 thousand, following a share consolidation[59]. - The company issued 105,264,000 new ordinary shares at a price of HKD 0.095 per share, raising approximately HKD 8,948,000 in share premium[60]. Corporate Governance and Compliance - The board has confirmed compliance with the standards of the GEM Listing Rules regarding securities trading during the interim period[93]. - The company has adhered to the corporate governance code as per GEM Listing Rules, with a noted deviation regarding the roles of the chairman and CEO[97]. - The audit committee reviewed the unaudited condensed consolidated financial statements, confirming compliance with applicable accounting standards and sufficient disclosure[99].

Financial Performance - For the three months ended March 31, 2020, the company reported revenue of HKD 9,719,000, a decrease of 28.5% compared to HKD 13,482,000 for the same period in 2019[3]. - The company incurred a loss before tax of HKD 28,784,000, compared to a loss of HKD 4,344,000 in the previous year, representing a significant increase in losses[3]. - The net loss attributable to owners of the company for the period was HKD 27,130,000, compared to HKD 8,834,000 in the same period last year, indicating a worsening financial position[3]. - The company reported a total comprehensive loss of HKD 37,883,000 for the period, compared to a comprehensive income of HKD 6,360,000 in the previous year[5]. - The basic and diluted loss per share for the period was HKD 10.03, compared to HKD 3.39 in the same period last year, reflecting a decline in shareholder value[3]. - The group reported a net loss before tax of HKD 27,130,000 for the three months ended March 31, 2020, compared to a loss of HKD 8,834,000 in 2019, representing an increase in loss of 207.5%[28]. - Loss attributable to owners of the company was approximately HKD 27,130,000, an increase from a loss of approximately HKD 8,834,000 in the previous year, mainly due to adverse economic conditions and the impact of the COVID-19 pandemic[32]. Credit Loss and Provisions - The expected credit loss provision for customer loans was HKD 16,930,000, a substantial increase from a reversal of HKD 2,341,000 in the prior year[3]. - The company recorded an expected credit loss provision of approximately HKD 16,930,000 for customer loans, compared to a reversal of approximately HKD 2,341,000 in the same period last year[32]. Equity and Share Issuance - As of March 31, 2020, the total equity attributable to owners of the company was HKD 625,385,000, down from HKD 649,940,000 at the beginning of the year[7]. - The company raised HKD 9,609,000 through the issuance of new shares during the period, which may support future operations and growth[7]. - The company completed a placement of 105,264,000 new shares at a price of HKD 0.095 per share, raising net proceeds of approximately HKD 9,609,000 to repay short-term debts[34]. - The total number of issued shares as of March 31, 2020, is 1,406,382,056 shares, which serves as the denominator for calculating ownership percentages[42]. Foreign Exchange and Expenses - The company experienced a foreign exchange loss of HKD 11,512,000 due to the translation of overseas operations, contrasting with a gain of HKD 12,854,000 in the previous year[5]. - Administrative and other expenses increased by approximately HKD 938,000 to about HKD 9,279,000, compared to HKD 8,341,000 in the previous year[32]. - Employee costs (excluding directors' remuneration) rose to HKD 3,589,000 from HKD 3,431,000, an increase of 4.6%[21]. Business Operations - The company primarily engages in short-term financing services in China and Hong Kong, with all revenue generated in China for the periods ended March 31, 2020, and March 31, 2019[18]. - The company operates as a single business segment, focusing solely on short-term financing services, including pawn loans and small loans[17]. - The company aims to continue providing faster and more flexible services to small and micro enterprises and individual borrowers to maintain competitiveness in the financial market[37]. Governance and Compliance - The board of directors confirmed that the financial information presented is accurate and complete, with no misleading elements[1]. - The financial statements have not been audited but were reviewed by the company's audit committee[14]. - The audit committee reviewed the unaudited condensed consolidated financial statements, confirming compliance with applicable accounting standards and GEM listing rules[47]. - The company adopted a code of conduct for directors' securities transactions that is no less stringent than GEM listing rules[46]. - There were no competitive businesses conducted by directors or major shareholders during the period[44]. Market Conditions and Future Outlook - The company anticipates that the ongoing tensions between China and the U.S. and the COVID-19 pandemic will make business operations challenging[37]. - The company believes that the recent acquisition of a 50% stake in Beijing Huayuan Sifang Asset Management Co., Ltd. will help diversify business risks and create synergies with existing operations[37]. Shareholder Information - Major shareholders include Exuberant Global Limited with a 98.44% stake and Time Prestige Holdings Limited with an 11.45% stake in the company[41]. - Exuberant Global Limited holds 1,384,571,429 shares, comprising 294,200,000 shares and 1,090,371,429 shares to be issued upon conversion of convertible bonds[42]. - Time Prestige Holdings Limited owns 161,142,857 shares, including 26,800,000 shares and 134,342,857 shares to be issued upon conversion of convertible bonds[42]. - Bustling Capital holds 402,857,142 shares, consisting of 67,000,000 shares and 335,857,142 shares to be issued upon conversion of convertible bonds[42].

香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM乃為較聯交所上市之其他公司可能帶有較高投資風險之中小型公司而設之市場。有意投資之人士應瞭解投資於該 等公司之潛在風險，並僅應經過審慎周詳之考慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣之證券可能會較於主板買賣之證券承受較大之市場波動風險，同時 無法保證在GEM買賣之證券會有高流通量之市場。 香港交易及結算所有限公司以及聯交所對本報告之內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示 概不就因本報告全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 本報告乃遵照聯交所GEM證券上巿規則（「GEM上巿規則」）之規定提供有關首都金融控股有限公司（「本公司」）之資料。 本公司董事（「董事」）願共同及個別對此負全責。董事經作出一切合理查詢後確認，就彼等所深知及確信，本報告所載資 料在各重大方面均屬準確完整，且無誤導或欺詐成分，本報告亦無遺漏任何其他事實，致使本報告所載任何聲明產生誤 導。 1 首都金融控股有限公司 二零一九年年報 目錄 | 3 | 公司資料 | | --- | --- | | 4 | 主席報 ...

香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM乃為較聯交所上市之其他公司可能帶有較高投資風險之中小型公司而設之市場。有意投資之人士應瞭 解投資於該等公司之潛在風險，並僅應經過審慎周詳之考慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣之證券可能會較於主板買賣之證券承受較大之市場波 動風險，同時無法保證在GEM買賣之證券會有高流通量之市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明， 並明確表示概不就因本報告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 本報告所載資料包括遵照聯交所GEM證券上市規則（「GEM上市規則」）規定提供有關首都金融控股有限公 司（「本公司」）的資料，本公司各董事（「董事」）對本報告所載資料共同及個別承擔全部責任，並在作出一切 合理查詢後確認，就彼等所深知及確信，本報告所載資料在各重大方面均屬準確完整，且無誤導或欺詐成 分，本報告並無遺漏任何其他事實，致使本報告所載任何聲明或本報告產生誤導。 1 首都金融控股有限公司 首都金融控股有限公司（「本公司」）董事會（「董事會」）欣然呈報本 ...

Financial Performance - For the six months ended June 30, 2019, the total revenue was HKD 29,965,000, a decrease of 19.1% compared to HKD 37,115,000 for the same period in 2018[3]. - The net loss for the six months ended June 30, 2019, was HKD 22,259,000, compared to a profit of HKD 2,939,000 in the same period of 2018[4]. - The total comprehensive loss for the six months was HKD 30,087,000, compared to HKD 24,978,000 in the same period of 2018[4]. - For the six months ended June 30, 2019, the company reported a net loss of HKD 25,696,000, compared to a profit of HKD 896,000 for the same period in 2018, indicating a significant decline in performance[7]. - The company reported a basic loss attributable to owners of approximately (25,696) thousand HKD for the six months ended June 30, 2019, compared to a profit of 896 thousand HKD in the same period of 2018[41]. - The company reported a loss attributable to owners of HKD 16,862,000 for the three months ended June 30, 2019, compared to a profit of HKD 5,255,000 for the same period in 2018[38]. Revenue Breakdown - For the six months ended June 30, 2019, total revenue from customer loan interest was HKD 29,873,000, a decrease of 17.5% compared to HKD 36,205,000 for the same period in 2018[28]. - Financial consulting income for the six months ended June 30, 2019, was HKD 92,000, down 89.9% from HKD 910,000 in the previous year[28]. - The net income from short-term financing services for the six months ended June 30, 2019, was HKD 29,965,000, a decline of 19.2% from HKD 37,115,000 in 2018[28]. Assets and Liabilities - Total assets as of June 30, 2019, were HKD 499,066,000, compared to HKD 126,199,000 as of December 31, 2018[6]. - The company's cash and cash equivalents decreased to HKD 158,916,000 from HKD 193,406,000, a decline of 17.8%[6]. - The company's total liabilities included convertible bonds amounting to HKD 159,955,000, reflecting its financing strategy[7]. - The company's non-current liabilities for convertible bonds were HKD 437,387,000 as of June 30, 2019[18]. - The group's other liabilities amounted to approximately HKD 456,767,000, a decrease from HKD 593,715,000 as of December 31, 2018[79]. Cash Flow - Cash used in operating activities for the six months ended June 30, 2019, was HKD 31,845,000, a stark contrast to cash generated of HKD 93,752,000 in the same period of 2018[11]. - The company reported cash and cash equivalents at the end of the period amounting to HKD 158,916,000, down from HKD 121,704,000 in the previous year[11]. - The company’s investment activities generated a net cash inflow of HKD 52,000, contrasting with a cash outflow of HKD 23,780,000 in the previous year[11]. - The company reported a total cash outflow from leases of approximately 125,000 thousand HKD during the interim period, compared to 2,231,000 thousand HKD in 2018[43]. Credit Loss and Provisions - The expected credit loss provision for the six months was HKD 8,524,000, a significant decrease from HKD 13,653,000 in the previous year[3]. - The company’s expected credit loss provision for customer loans was 116,067 thousand HKD as of June 30, 2019, compared to 107,788 thousand HKD at the end of 2018[48]. - The company recognized a loss provision of 8,524 thousand HKD during the reporting period, compared to 41,069 thousand HKD for the previous year[54]. - The company maintained a consistent approach in estimating expected credit losses by considering factors such as loan aging and actual interest rates charged to borrowers[54]. Equity and Capital Structure - The company's equity attributable to owners was HKD 43,119,000, a recovery from a deficit of HKD 89,479,000 in the previous year[6]. - The company’s total equity attributable to owners decreased to HKD 43,119,000 as of June 30, 2019, from HKD 12,402,000 at the end of 2018[7]. - The company recorded a capital injection of approximately HKD 159,955,000 due to the extension of the maturity date of convertible bonds[75]. - The face value of the convertible bonds at the end of the reporting period was HKD 581,200,000[18]. Operational Overview - The company primarily engages in investment holding and provides short-term financing services in China and Hong Kong[12]. - The company operates solely in China and Hong Kong, focusing on short-term financing services, with no further breakdown of operational segments provided[25]. - The company has no taxable profits in Hong Kong for the six months ended June 30, 2019, resulting in no provision for Hong Kong profits tax[34]. Governance and Compliance - The interim financial statements have not been audited but reviewed by the company's audit committee[16]. - The audit committee reviewed the unaudited condensed consolidated financial statements, ensuring compliance with applicable accounting standards and GEM listing rules[108]. - The company has complied with the corporate governance code, with the exception of the separation of the roles of chairman and CEO[103]. Shareholder Information - Exuberant Global Limited holds 1,384,571,429 shares, representing 106.41% of the company's issued shares as of June 30, 2019[95]. - Time Prestige Holdings Limited owns 161,142,857 shares, accounting for 12.38% of the issued shares[95]. - The company has no unexercised options under the share option scheme as of June 30, 2019[97]. - The share option scheme allows for the issuance of up to 130,111,805 shares, equivalent to approximately 10% of the current issued shares[98].

Financial Performance - For the three months ended March 31, 2019, the company reported revenue of HKD 13,482,000, a decrease of 27.8% compared to HKD 18,528,000 for the same period in 2018[3]. - The company incurred a loss before tax of HKD 4,344,000, compared to a loss of HKD 237,000 in the previous year, indicating a significant increase in losses[3]. - The net loss for the period was HKD 6,494,000, which is an increase of 79.5% from the loss of HKD 3,615,000 in the same quarter of 2018[5]. - The company reported a basic and diluted loss per share of HKD 0.68, compared to HKD 0.34 in the prior year, reflecting a 100% increase in loss per share[3]. - Total comprehensive income for the period amounted to HKD 6,360,000, a decline of 68.5% from HKD 20,223,000 in the same quarter of 2018[5]. - The company reported a loss attributable to owners of HKD 8,834,000 for the period, compared to a loss of HKD 4,359,000 in the previous year, indicating an increase in losses[38]. Comprehensive Income - Other comprehensive income for the period was HKD 12,854,000, down from HKD 23,838,000 in the previous year, showing a decrease of 46.1%[5]. - The company recognized expected credit loss provisions of HKD 2,341,000, compared to a reversal of HKD 166,000 in the previous year, indicating a deterioration in credit quality[3]. Expenses - Administrative and other expenses increased to HKD 8,341,000 from HKD 7,790,000, representing a rise of 7.1% year-over-year[3]. - The actual interest expenses for convertible bonds were HKD 12,011,000, up from HKD 11,043,000 in the previous year[25]. - The income tax expense for the period was HKD 2,150,000, down from HKD 3,378,000 in the same period of 2018[28]. Assets and Liabilities - As of March 31, 2019, total non-current assets amounted to HKD 45,265,000, reflecting an increase of 21.4% from the previous period[20]. - The total current assets as of March 31, 2019, were HKD 495,401,000, a slight decrease of 0.2% compared to the previous period[20]. - The company’s total liabilities increased to HKD 618,948,000 as of January 1, 2019, due to the recognition of lease liabilities[20]. Accounting Policies - The company adopted HKFRS 16, which resulted in an adjustment of HKD 200,000 to retained earnings as of January 1, 2019[7]. - The financial report indicates that the company has not made significant changes to its accounting policies, except for the adoption of new standards effective from January 1, 2019[13]. Business Operations - The company primarily engages in investment holding and provides short-term financing services in China and Hong Kong[11]. - The company has only one operating segment, focusing solely on short-term financing services, including pawn loans and micro-financing[21]. - All revenue generated during the three months ended March 31, 2019, was derived from operations in China[22]. Shareholder Information - As of March 31, 2019, Exuberant Global Limited holds 1,384,571,429 shares, representing 106.41% of the company's issued share capital[44]. - Time Prestige Holdings Limited owns 161,142,857 shares, accounting for 12.38% of the issued share capital[44]. - Bustling Capital Limited has a stake of 402,857,142 shares, which is 30.96% of the issued share capital[44]. Corporate Governance - The audit committee has reviewed the unaudited condensed consolidated financial statements, confirming compliance with applicable accounting standards and sufficient disclosure[50]. - The company has adopted a code of conduct for directors' securities trading that is no less stringent than the GEM Listing Rules[49]. - The company has not engaged in any arrangements that would allow directors or key executives to benefit from purchasing the company's securities during the reporting period[43]. Future Outlook - The company anticipates that the financial industry will play a significant role in China's economic development in 2019, benefiting from strong demand for short-term financing services from small and medium-sized enterprises (SMEs)[40]. - The board believes that SMEs will continue to develop steadily, aligning with the overall growth of the Chinese economy[40]. - The company plans to maintain liquidity in its monetary lending business while closely monitoring its cash position and seeking opportunities to diversify revenue sources[40].

Financial Performance - The total revenue for the year ended December 31, 2018, was approximately HKD 85,721,000, an increase of about 14.5% from HKD 74,833,000 in 2017[12]. - Financial advisory income significantly rose by approximately HKD 9,674,000 due to consulting services related to the acquisition of equity from an independent third party, contributing to the overall revenue increase[12]. - The operating profit before tax for short-term financing services was approximately HKD 30,411,000, a decrease from HKD 51,569,000 in 2017, largely due to increased credit loss provisions[14]. - The company reported a loss attributable to owners of approximately HKD 29,625,000 for the year, compared to a loss of HKD 14,735,000 in 2017, reflecting a significant increase in losses[13]. - Revenue from the top five customers accounted for approximately 26% of total revenue for the year ended December 31, 2018, with the largest customer contributing about 13%[180][181]. Credit Loss Provisions - The expected credit loss provision for customer loans surged from approximately HKD 1,534,000 in 2017 to about HKD 41,069,000 in 2018, primarily due to the adoption of Hong Kong Financial Reporting Standard No. 9[13]. - The group faces major risks including interest rate risk, foreign exchange risk, credit risk, and liquidity risk, influenced by macroeconomic fluctuations and regulatory changes in China[171]. Operational Strategy - The company remains committed to providing flexible short-term financing solutions to SMEs and individuals, despite a challenging market environment[7]. - The company plans to closely monitor its cash position while seeking opportunities to diversify revenue sources to improve overall operational performance[8]. - The company aims to benefit from the strong demand for short-term financing services from SMEs amid tighter financing controls by banks[8]. - The company emphasizes a prudent approach in loan approvals and maintains a diversified loan portfolio to achieve satisfactory operational performance[7]. - The group plans to expand its business in cities such as Shenyang, Lhasa, and Hong Kong, in addition to increasing its influence in the Beijing market[171]. Employee and Training - The total employee costs for the year ended December 31, 2018, were approximately HK$18,061,000, up from HK$15,973,000 in 2017[35]. - As of December 31, 2018, the company had a total of 77 employees, a slight decrease from 78 employees in 2017, indicating a stable human resources structure[53]. - Total training hours for employees increased by 37.15% from 607 hours in 2017 to 832.5 hours in 2018, with internal training hours rising from 309 to 812[60]. - Employee turnover decreased significantly, with female turnover dropping from 18 to 5 and male turnover from 12 to 6[56]. Environmental and Social Responsibility - The company has established an Environmental, Social, and Governance (ESG) working group to demonstrate its commitment to transparency and accountability[43]. - The company has implemented internal guidelines on anti-bribery and anti-corruption to maintain and encourage ethical business conduct[49]. - The company has adopted a corporate social responsibility policy to integrate CSR into its business strategy and management approach[42]. - The company has adhered to environmental laws and has taken steps to promote recycling and reduce paper usage in operations[66]. - The company has implemented measures to ensure employee safety, including the installation of fire safety equipment and training for employees in case of fire emergencies[57]. Governance and Compliance - The company is committed to improving corporate governance practices and has adhered to all provisions of the GEM Listing Rules Appendix 15 Corporate Governance Code, except for the separation of the roles of Chairman and CEO[85]. - The board consists of six members, including two executive directors and three independent non-executive directors, ensuring a diverse range of expertise and oversight[89]. - The company has a robust risk management and internal control system in place, continuously monitored by the board[96]. - The Audit Committee is composed entirely of independent non-executive directors, with one member possessing appropriate professional qualifications and relevant financial management experience[111]. - The board oversees the company's corporate social responsibility strategies and policies through an authorized working group[137]. Financial Position and Liabilities - As of December 31, 2018, the group's other liabilities amounted to approximately HK$593,715,000, an increase from HK$548,910,000 in 2017[18]. - The group's cash and cash equivalents were approximately HK$193,406,000 as of December 31, 2018, compared to HK$55,893,000 in 2017[18]. - The group's debt-to-equity ratio was approximately -6.6 as of December 31, 2018, down from 23.0 in 2017, indicating a significant deterioration in equity[18]. - The group has no significant contingent liabilities as of December 31, 2018, remaining at zero[34]. Investment and Financing - The group plans to seek future financing and may consider equity fundraising to reduce financing costs[19]. - The group made a significant investment of RMB 20,000,000 (approximately HK$22,788,000) in an investment product issued by Beijing Shouyu Investment Co., Ltd. on April 12, 2018[28]. - The company extended the maturity date of the 2014 convertible bonds by three years, from June 24, 2019, to June 24, 2022, and the 2015 convertible bonds from February 5, 2020, to February 5, 2023[36]. Risk Management - The group implemented a comprehensive risk management framework to identify and manage significant risks associated with its business operations[141]. - The internal audit function has been delegated to an independent external verification provider, which reviewed the adequacy and effectiveness of the group's risk management and internal control systems for the year ended December 31, 2018[136]. - The group has adopted a whistleblowing policy to encourage employees to report any misconduct or unethical business practices without fear of retaliation[141]. Shareholder Relations - The company encourages shareholders to attend all general meetings and communicates important developments through various channels[149]. - The company aims to improve transparency and gain more market recognition and shareholder support[150]. - The company has adopted a dividend policy to enhance transparency and assist shareholders and investors in making informed investment decisions[158]. - The company did not declare any dividends for the year ended December 31, 2018, consistent with the previous year[157].