Group 1 - The company reported a revenue of HKD 14.493 million for the six months ending June 30, 2025, representing a year-on-year increase of 142.85% [1] - The loss attributable to shareholders was HKD 8.149 million, which is a year-on-year decrease of 32.26% [1] - The loss per share was HKD 0.0868 [1]

智通财经APP讯，首都金融控股(08239)发布截至2025年6月30日止6个月中期业绩，该集团取得收益 1449.3万港元，同比增加142.85%;公司拥有人应占亏损814.9万港元，同比减少32.26%;每股亏损8.68港 仙。 ...

Introduction and Disclaimer This section introduces the GEM market's characteristics and presents the Group's unaudited interim results for the period [Characteristics of GEM](index=1&type=section&id=Characteristics%20of%20GEM) The GEM market provides a listing platform for high-risk SMEs, requiring investors to understand potential risks, with directors fully responsible for announcement accuracy - The GEM market is positioned to provide a listing platform for high-investment-risk small and medium-sized companies, and investors should understand the potential risks[4](index=4&type=chunk) - The company's directors confirm that the information in this announcement is accurate and complete in all material respects, without misleading or fraudulent components[4](index=4&type=chunk) [Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) This announcement presents the unaudited condensed consolidated results and comparative figures for Capital Finance Holdings Limited for the six months ended June 30, 2025 - This announcement presents the Group's unaudited condensed consolidated results for the six months ended June 30, 2025[3](index=3&type=chunk)[5](index=5&type=chunk) Unaudited Condensed Consolidated Financial Statements This section presents the Group's unaudited condensed consolidated financial statements, including income, comprehensive income, financial position, equity changes, and cash flows [Unaudited Condensed Consolidated Income Statement](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Income%20Statement) The Group recorded revenue of HK$14,493 thousand for the six months ended June 30, 2025, a significant increase year-on-year, but a loss for the period of HK$7,931 thousand due to a substantial rise in income tax expense, which narrowed compared to the prior year Key Data from Condensed Consolidated Income Statement | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 14,493 | 5,968 | | Other income and net other gains and losses | 1,064 | 3,820 | | Administrative and other expenses | (12,862) | (12,464) | | Reversal of / (Provision for) expected credit losses on customer loans | 8,860 | (2,460) | | Finance costs | (3,173) | (4,643) | | Profit / (Loss) before income tax | 8,382 | (9,779) | | Income tax expense | (16,313) | (3,427) | | Loss for the period | (7,931) | (13,206) | | Loss for the period attributable to owners of the Company | (8,149) | (12,030) | | Basic and diluted loss per share (HK cents) | (8.68) | (29.53) | - Revenue increased by **142.8% year-on-year**, primarily driven by settlement gains from non-performing debt assets and expansion of IT solution services[5](index=5&type=chunk) - Loss for the period narrowed by **39.9%**, mainly due to the combined effect of revenue growth and reversal of expected credit losses, despite a significant increase in income tax expense[5](index=5&type=chunk) [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's total comprehensive expense for the six months ended June 30, 2025, was HK$4,887 thousand, a significant decrease year-on-year, mainly due to a positive shift in exchange differences Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Loss for the period | (7,931) | (13,206) | | Exchange differences arising from translation of financial statements of overseas operations | 3,451 | (4,127) | | Exchange reserve reclassified to profit or loss on disposal of subsidiaries and joint ventures | (407) | – | | Other comprehensive income / (expense) for the period, net of tax | 3,044 | (4,124) | | Total comprehensive expense for the period | (4,887) | (17,330) | - Total comprehensive expense for the period decreased by **71.8% year-on-year**, primarily due to exchange differences from overseas operations' financial statements shifting from a loss to income[7](index=7&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities were HK$75,801 thousand, and net assets were HK$67,261 thousand, a decrease from the end of 2024, mainly due to a reduction in deferred tax assets and investment properties Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current assets | 16,913 | 37,892 | | Current assets | 133,509 | 117,753 | | Current liabilities | 74,621 | 74,666 | | Net current assets | 58,888 | 43,087 | | Total assets less current liabilities | 75,801 | 80,979 | | Non-current liabilities | 8,540 | 8,831 | | Net assets | 67,261 | 72,148 | | Equity attributable to owners of the Company | 32,894 | 39,517 | | Total equity | 67,261 | 72,148 | - Non-current assets significantly decreased by **55.4%**, primarily due to a reduction in deferred tax assets and the disposal of investment properties[8](index=8&type=chunk)[9](index=9&type=chunk) - Net current assets increased by **36.7%**, mainly driven by an increase in customer loans (current portion) and cash and cash equivalents[8](index=8&type=chunk)[9](index=9&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, equity attributable to owners of the Company was HK$32,894 thousand, a decrease from the beginning of the year, mainly impacted by the loss for the period and changes in exchange reserves Key Data from Condensed Consolidated Statement of Changes in Equity | Indicator | January 1, 2025 (HK$ thousand) | June 30, 2025 (HK$ thousand) | | :--- | :--- | :--- | | Equity attributable to owners of the Company | 39,517 | 32,894 | | Non-controlling interests | 32,631 | 34,367 | | Total equity | 72,148 | 67,261 | | (Loss) / Profit for the period (attributable to owners of the Company) | – | (8,149) | | Other comprehensive income for the period (attributable to owners of the Company) | – | 1,526 | - Equity attributable to owners of the Company decreased by **16.8%**, primarily due to a loss for the period of HK$8,149 thousand[10](index=10&type=chunk) - Non-controlling interests increased by **5.3%**, reflecting their share of profit and other comprehensive income for the period[10](index=10&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group generated net cash from operating activities of HK$12,564 thousand, net cash from investing activities of HK$2,049 thousand, and used net cash in financing activities of HK$4,165 thousand, with cash and cash equivalents increasing to HK$84,502 thousand at period-end Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 12,564 | 18,707 | | Net cash generated from investing activities | 2,049 | – | | Net cash used in financing activities | (4,165) | (21,689) | | Net increase / (decrease) in cash and cash equivalents | 10,448 | (2,982) | | Cash and cash equivalents at end of period | 84,502 | 88,250 | - Net cash generated from operating activities decreased by **32.8% year-on-year**, mainly due to lower cash generated from operations and increased income tax paid[12](index=12&type=chunk) - Investing activities shifted from no cash flow in the prior period to a net inflow of **HK$2,049 thousand**, primarily from proceeds from the disposal of investment properties[12](index=12&type=chunk) - Net cash used in financing activities significantly decreased by **80.8%**, mainly due to higher expenditures for redemption of convertible bonds and promissory notes in the prior period[12](index=12&type=chunk) Notes to the Unaudited Condensed Consolidated Financial Statements This section provides detailed notes to the unaudited condensed consolidated financial statements, covering general information, accounting policies, segment data, and specific financial items [Note 1. General Information](index=9&type=section&id=Note%201.%20General%20Information) The Company is a limited liability company incorporated in Bermuda, with its shares listed on GEM of the Stock Exchange. The Group primarily provides short-term financing services and IT solutions and consulting services for the financial industry in China and Hong Kong - The Company is incorporated in Bermuda, and its shares are listed on GEM of the Stock Exchange[13](index=13&type=chunk) - The Group's principal activities are providing short-term financing services and IT solutions and consulting services for the financial industry in China and Hong Kong[13](index=13&type=chunk) [Note 2. Basis of Preparation and Principal Accounting Policies](index=9&type=section&id=Note%202.%20Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the GEM Listing Rules, presented on a historical cost basis (except for investment properties), and with HK dollars as the functional currency. New/revised HKFRSs adopted during the period had no significant impact on results or financial position - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the GEM Listing Rules, presented in HK dollars[14](index=14&type=chunk) - New/revised Hong Kong Financial Reporting Standards adopted during the period had no significant impact on the Group's results and financial position[17](index=17&type=chunk) - The interim financial statements are unaudited by an independent auditor but have been reviewed by the Audit Committee[16](index=16&type=chunk) [Note 3. Segment Information](index=10&type=section&id=Note%203.%20Segment%20Information) The Group has only one operating segment but categorizes revenue by customer location, showing a significant increase in Hong Kong revenue and a decrease in China revenue - The Group has only one operating segment, with no further segment information analysis[18](index=18&type=chunk) Revenue by Geographical Location | Region | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 11,963 | 800 | | China | 2,530 | 5,168 | | **Total** | **14,493** | **5,968** | - Revenue from Hong Kong increased by **1395.4% year-on-year**, while revenue from China decreased by **51.0% year-on-year**[21](index=21&type=chunk) [Note 4. Revenue, Other Income and Net Other Gains and Losses](index=11&type=section&id=Note%204.%20Revenue%2C%20Other%20Income%20and%20Net%20Other%20Gains%20and%20Losses) The Group's revenue primarily comprises interest income from customer loans, settlement gains from non-performing debt assets, and IT solution and consulting income. Other income and net losses are mainly affected by exchange differences, bank interest income, and gains from disposal of subsidiaries Revenue Components | Revenue Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest income from customer loans | 3,193 | 5,168 | | Settlement gains from non-performing debt assets | 8,500 | – | | IT solution and consulting income | 2,800 | 800 | | **Total Revenue** | **14,493** | **5,968** | Other Income and Net Other Gains and Losses | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net exchange differences | (50) | (250) | | Bank interest income | 464 | 754 | | Gain on early redemption of convertible bonds | – | 3,099 | | Gain on disposal of subsidiaries and a joint venture | 417 | – | | **Total** | **1,064** | **3,820** | - Settlement gains from non-performing debt assets of **HK$8,500 thousand** were the primary driver of revenue growth in the current period[22](index=22&type=chunk) - Other income and net other gains and losses decreased, mainly because there was a gain from early redemption of convertible bonds in the prior period, but none in the current period[22](index=22&type=chunk) [Note 5. Finance Costs](index=12&type=section&id=Note%205.%20Finance%20Costs) Finance costs for the current period were HK$3,173 thousand, a decrease from the prior period, mainly due to zero interest expense on convertible bonds, though interest expense on promissory notes increased Finance Cost Components | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Convertible bonds | – | 4,321 | | Promissory notes | 3,128 | 269 | | Lease liabilities | 45 | 53 | | **Total** | **3,173** | **4,643** | - Finance costs decreased by **31.7% year-on-year**, primarily due to zero interest expense on convertible bonds[24](index=24&type=chunk) [Note 6. Profit / (Loss) Before Income Tax](index=12&type=section&id=Note%206.%20Profit%20%2F%20%28Loss%29%20Before%20Income%20Tax) The Group's profit before income tax was HK$8,382 thousand, compared to a loss in the prior period, mainly benefiting from the reversal of expected credit losses on customer loans and an increase in staff costs Factors Affecting Profit / (Loss) Before Income Tax | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Staff costs | 7,582 | 6,313 | | Auditor's remuneration | 480 | 569 | | Service costs | 1,566 | – | | Depreciation of property, plant and equipment | 157 | 125 | | Depreciation of right-of-use assets | 247 | 543 | - Staff costs increased by **20.1% year-on-year**, mainly due to higher salaries, allowances, and other benefits[25](index=25&type=chunk) - New service costs of **HK$1,566 thousand** were incurred in the current period[25](index=25&type=chunk) [Note 7. Income Tax Expense](index=13&type=section&id=Note%207.%20Income%20Tax%20Expense) Income tax expense for the current period significantly increased to HK$16,313 thousand, primarily due to a substantial rise in deferred tax expense, as well as dividend withholding tax and China current tax expense Income Tax Expense Components | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | China current tax expense | 369 | 880 | | Withholding tax on dividends | 547 | 1,629 | | Deferred tax expense | 15,397 | 918 | | **Income Tax Expense** | **16,313** | **3,427** | - Income tax expense significantly increased by **376.0% year-on-year**, mainly driven by deferred tax expense rising from HK$918 thousand to HK$15,397 thousand[27](index=27&type=chunk) - The Group is exempt from income tax in Bermuda, Cayman Islands, and British Virgin Islands, while its Chinese subsidiaries are subject to a 25% corporate income tax rate, with small-profit enterprises enjoying preferential rates[28](index=28&type=chunk) [Note 8. Dividends](index=14&type=section&id=Note%208.%20Dividends) The Board of Directors does not recommend the payment of any dividend for the interim period - The Directors do not recommend the payment of any dividend for the interim period (2024: Nil)[29](index=29&type=chunk) [Note 9. Loss Per Share](index=14&type=section&id=Note%209.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the Company was 8.68 HK cents, a significant narrowing from 29.53 HK cents in the prior period, mainly due to reduced loss and an increased weighted average number of ordinary shares Loss Per Share Calculation Data | Indicator | 2025 (HK$ thousand / thousand shares) | 2024 (HK$ thousand / thousand shares) | | :--- | :--- | :--- | | Loss attributable to owners of the Company used for basic loss per share | (8,149) | (12,030) | | Weighted average number of ordinary shares used for basic loss per share | 93,841 | 40,733 | | **Basic and Diluted Loss Per Share (HK cents)** | **(8.68)** | **(29.53)** | - Basic and diluted loss per share for 2025 are equal as there are no potential dilutive ordinary shares[30](index=30&type=chunk) - Basic and diluted loss per share for 2024 were also equal due to the anti-dilutive effect of convertible bonds[30](index=30&type=chunk) [Note 10. Right-of-use Assets](index=15&type=section&id=Note%2010.%20Right-of-use%20Assets) The Group obtains right-of-use assets for office properties and staff quarters through lease arrangements, with lease terms ranging from 2 to 16 years. No new right-of-use assets were added during the interim period, and total cash outflow for leases was approximately HK$244 thousand - The Group leases office properties and staff quarters, with lease terms ranging from 2 to 16 years[33](index=33&type=chunk) - No right-of-use assets were added during the interim period[34](index=34&type=chunk) - Total cash outflow for leases was approximately **HK$244 thousand**, with a weighted average effective interest rate of **3.55% per annum**[34](index=34&type=chunk) [Note 11. Investment Properties](index=16&type=section&id=Note%2011.%20Investment%20Properties) The Group disposed of a residential property in Beijing during the interim period for a total consideration of approximately HK$2,043 thousand, resulting in a zero balance for investment properties at period-end Changes in Investment Properties | Item | For the period from January 1, 2025 to June 30, 2025 (HK$ thousand) | | :--- | :--- | | At beginning of reporting period | 2,043 | | Disposal | (2,043) | | **At end of reporting period** | **–** | - The Group disposed of a residential property in Beijing on February 27, 2025, for a consideration of approximately **HK$2,043 thousand**[36](index=36&type=chunk) - The disposal was completed, and no significant gain or loss was recognized[36](index=36&type=chunk) [Note 12. Repossessed Assets](index=16&type=section&id=Note%2012.%20Repossessed%20Assets) The Group's repossessed assets primarily consist of real estate properties in Beijing, with a carrying amount of HK$1,622 thousand, and are expected to be sold within a reasonable timeframe Carrying Amount of Repossessed Assets | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Repossessed properties – real estate properties in Beijing | 1,622 | 1,575 | - The estimated market value of repossessed assets is approximately **HK$1,648 thousand**, comprising properties obtained through court proceedings or control[37](index=37&type=chunk) - The Group plans to sell these properties within a reasonable time after gaining ownership, not expected within 12 months from the end of the reporting period[37](index=37&type=chunk) [Note 13. Customer Loans](index=17&type=section&id=Note%2013.%20Customer%20Loans) Total customer loans amounted to HK$101,115 thousand, a significant decrease from the end of 2024, with a notable reduction in loss allowance. The Group applies an expected credit loss model, and loans overdue for more than 90 days are considered credit-impaired Total Customer Loans and Loss Allowance | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Gross customer loans | 101,115 | 153,890 | | Less: Loss allowance | (52,011) | (105,106) | | **Net customer loans** | **49,104** | **48,784** | Credit Quality Analysis of Customer Loans | Category | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Not past due or credit-impaired | 38,133 | 36,220 | | Past due but not credit-impaired (within 30 days) | 5,615 | – | | Past due but not credit-impaired (30 to 90 days) | 2,278 | 4,753 | | Past due and credit-impaired (over 90 days) | 55,089 | 112,917 | | **Total** | **101,115** | **153,890** | - Gross customer loans decreased by **34.3%**, and loss allowance decreased by **50.5%**, leading to a slight increase in net customer loans[38](index=38&type=chunk)[42](index=42&type=chunk) - The proportion of credit-impaired loans overdue for more than 90 days decreased from **73.4%** at the end of 2024 to **54.5%** of the total[40](index=40&type=chunk) - Loss allowance accounted for approximately **51.4%** of the total gross carrying amount of all customer loans (December 31, 2024: approximately **68.3%**)[42](index=42&type=chunk) [Note 14. Amounts Due to Directors](index=19&type=section&id=Note%2014.%20Amounts%20Due%20to%20Directors) As of June 30, 2025, amounts due to directors were zero, compared to HK$995 thousand at the end of 2024, and these amounts were unsecured, interest-free, and repayable on demand - Amounts due to directors were zero as of June 30, 2025, a decrease from **HK$995 thousand** at the end of 2024[9](index=9&type=chunk) - These amounts were unsecured, interest-free, and repayable on demand[44](index=44&type=chunk) [Note 15. Amounts Due to Shareholders](index=19&type=section&id=Note%2015.%20Amounts%20Due%20to%20Shareholders) As of June 30, 2025, amounts due to shareholders were HK$400 thousand, and these amounts were unsecured, interest-free, and repayable on demand - Amounts due to shareholders were **HK$400 thousand** as of June 30, 2025, compared to zero at the end of 2024[9](index=9&type=chunk) - These amounts were unsecured, interest-free, and repayable on demand[45](index=45&type=chunk) [Note 16. Promissory Notes](index=20&type=section&id=Note%2016.%20Promissory%20Notes) The carrying amount of promissory notes was HK$72,367 thousand, a slight decrease from the end of 2024. A portion of promissory notes was early redeemed during the period, resulting in a gain of approximately HK$166 thousand Changes in Promissory Notes | Item | For the period from January 1, 2025 to June 30, 2025 (HK$ thousand) | | :--- | :--- | | At beginning of reporting period | 73,804 | | Actual interest expense | 3,128 | | Interest payments | (339) | | Early redemption | (4,226) | | **Carrying amount at end of reporting period** | **72,367** | - The carrying amount of promissory notes decreased by **HK$1,437 thousand**, mainly due to early redemption[46](index=46&type=chunk) - Promissory notes with a total principal amount of **HK$4,060 thousand** were early redeemed during the period, resulting in a gain of approximately **HK$166 thousand**[46](index=46&type=chunk) [Note 17. Issued Share Capital](index=21&type=section&id=Note%2017.%20Issued%20Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital was HK$938 thousand, comprising 93,841 thousand ordinary shares, consistent with the end of 2024. New shares were issued through a placing in 2024 Issued Share Capital | Item | Number of Shares (thousand shares) | Amount (HK$ thousand) | | :--- | :--- | :--- | | At January 1, 2024 | 78,201 | 782 | | New shares issued upon placing | 15,640 | 156 | | **At June 30, 2025** | **93,841** | **938** | - On February 28, 2024, the Company placed **15,640,000 new ordinary shares**, raising net proceeds of approximately **HK$7,820 thousand**[47](index=47&type=chunk) - Share issue premium of approximately **HK$7,355 thousand** was credited to the share premium account[47](index=47&type=chunk) [Note 18. Related Party Transactions](index=22&type=section&id=Note%2018.%20Related%20Party%20Transactions) Related party transactions during the period included lease payments to non-controlling interests of a non-wholly owned subsidiary and the sale of customer loans to a registered shareholder of a subsidiary - Lease payments of approximately **HK$118 thousand** were made to non-controlling interests of a non-wholly owned subsidiary[50](index=50&type=chunk) - Consideration of approximately **HK$1,027 thousand** was received from the sale of customer loans to a registered shareholder of a subsidiary[50](index=50&type=chunk) [Note 19. Events After the Reporting Period](index=22&type=section&id=Note%2019.%20Events%20After%20the%20Reporting%20Period) After the reporting period, Beijing Zhicheng Zhuoshi Management Consulting Services Co., Ltd., an indirect wholly-owned subsidiary of the Company, completed its deregistration on July 31, 2025 - Beijing Zhicheng Zhuoshi Management Consulting Services Co., Ltd. completed its deregistration on July 31, 2025[49](index=49&type=chunk) Management Discussion and Analysis This section reviews the Group's business and financial performance, outlines future strategies, and discusses liquidity, capital structure, and human resources [Business and Financial Review](index=23&type=section&id=Business%20and%20Financial%20Review) The Group's revenue significantly increased to HK$14,493 thousand during the interim period, primarily driven by settlement gains from non-performing debt assets and expansion of IT solution services. Loss for the period narrowed, but income tax expense substantially increased - Total revenue was approximately **HK$14,493 thousand**, an increase of approximately **HK$8,525 thousand year-on-year**, mainly from settlement gains on non-performing debt assets in Hong Kong's short-term financing services and expansion of IT solution services for the financial industry[51](index=51&type=chunk) - Other income and net other gains and losses decreased by approximately **HK$2,756 thousand**, mainly due to no gain from early redemption of convertible bonds during the interim period[51](index=51&type=chunk) - Reversal of expected credit losses on customer loans was approximately **HK$8,860 thousand**, a decrease of approximately **HK$11,320 thousand** compared to the prior period's provision, mainly due to a reduction in the total balance of customer loans[52](index=52&type=chunk) - Income tax expense significantly increased by approximately **HK$12,886 thousand** to **HK$16,313 thousand**, primarily due to the reversal of temporary differences related to expected credit loss provisions arising from the disposal of customer loans[53](index=53&type=chunk) - Loss attributable to owners of the Company was approximately **HK$8,149 thousand**, a decrease from the prior period, mainly due to the combined effect of increased revenue, reversal of loss provisions, and increased income tax expense[53](index=53&type=chunk) [Outlook](index=24&type=section&id=Outlook) Despite stable economic operations in China, competition in short-term financing is intensifying. The Group plans to leverage IT technologies like blockchain, AI, and large models for digital transformation, explore RWA applications in digital finance, and integrate IT solutions into traditional short-term financing to enhance competitiveness and revenue - China's economy is generally stable, but competition in the short-term financing sector is intensifying, making the pawn and micro-loan environment increasingly challenging[54](index=54&type=chunk) - The Group intends to leverage IT technologies such as blockchain, AI, and large models to drive digital transformation and explore innovative applications of Real World Assets (RWA) in digital finance[55](index=55&type=chunk) - Independently developing an AI intelligent service platform, including application scenarios such as intelligent data processing, intelligent risk control, intelligent settlement, and intelligent customer service[55](index=55&type=chunk) - Integrating IT technology solutions into traditional short-term financing services and actively seeking new business opportunities in China and/or Hong Kong to diversify revenue streams[55](index=55&type=chunk)[56](index=56&type=chunk) [Material Investments, Acquisitions and Disposals](index=25&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) Except as disclosed in this announcement, the Group did not undertake any other material investments, acquisitions, or disposals of subsidiaries or associates during the interim period - No other material investments, acquisitions, or disposals occurred during the interim period[57](index=57&type=chunk) [Future Plans for Material Investments and Capital Assets](index=25&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) Except as disclosed in this announcement, the Group currently has no definite intentions or specific plans for any material investments or capital assets - The Group currently has no definite intentions or specific plans for any material investments or capital assets[58](index=58&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group held cash and cash equivalents of approximately HK$84,502 thousand, with a gearing ratio of 2.2 and a debt ratio of 0.55. Management will monitor debt levels and consider equity fundraising to reduce financing costs - As of June 30, 2025, the Group's other debts were approximately **HK$72,367 thousand**, and cash and cash equivalents were approximately **HK$84,502 thousand**[59](index=59&type=chunk) - The gearing ratio was approximately **2.2** (December 31, 2024: **1.9**), and the debt ratio was approximately **0.55** (December 31, 2024: **0.54**)[60](index=60&type=chunk) - The Group will seek future financing and raise funds through equity fundraising activities to further reduce financing costs[59](index=59&type=chunk) [Capital Structure](index=26&type=section&id=Capital%20Structure) The Group's capital structure primarily consists of promissory notes, with no bank borrowings during the interim period. A portion of promissory notes was early redeemed, and new promissory notes were issued to settle maturing debts (i) Bank Borrowings](index=26&type=section&id=%28i%29%20Bank%20Borrowings) - As of June 30, 2025, and December 31, 2024, there were no outstanding bank borrowings[61](index=61&type=chunk) (ii) Promissory Notes](index=26&type=section&id=%28ii%29%20Promissory%20Notes) Summary of Promissory Notes | Issue Date | Principal Amount (HK$) | Annual Interest Rate | Principal Repayment Due Date | Principal Amount Redeemed (HK$) | Principal Amount Outstanding (HK$) | | :--- | :--- | :--- | :--- | :--- | :--- | | August 5, 2024 | 6,720,000 | 8% | August 4, 2026 | – | 6,720,000 | | August 5, 2024 | 63,664,650 | 8% | December 31, 2025 | (4,060,000) | 59,604,650 | | December 23, 2024 | 2,000,000 | 7% | December 23, 2025 | – | 2,000,000 | - The Company issued new promissory notes to settle the maturing new 2023 convertible bonds and maturing promissory notes[62](index=62&type=chunk)[63](index=63&type=chunk) - On March 26, 2025, promissory notes with a total principal amount of **HK$4,060 thousand** were early redeemed, resulting in a gain of approximately **HK$166 thousand**[63](index=63&type=chunk) [Fund Raising Activities](index=27&type=section&id=Fund%20Raising%20Activities) The Company did not undertake any fundraising activities during the interim period. In 2024, new shares were issued through a placing, raising approximately HK$7,511 thousand - The Company did not undertake any fundraising activities during the interim period[65](index=65&type=chunk) - On February 28, 2024, the Company placed **15,640,000 ordinary shares**, raising net proceeds of approximately **HK$7,511 thousand**[64](index=64&type=chunk) [Foreign Exchange Risk](index=27&type=section&id=Foreign%20Exchange%20Risk) The Group's business is primarily denominated in RMB, resulting in minimal foreign exchange risk. There is currently no foreign exchange hedging policy, but it will be closely monitored, and hedging instruments will be considered in the future - The Group's majority of business transactions, assets, and liabilities are primarily denominated in RMB, resulting in minimal foreign exchange risk[66](index=66&type=chunk) - RMB conversion is subject to foreign exchange controls by the Chinese government[66](index=66&type=chunk) - The Group currently has no foreign exchange hedging policy but will monitor and consider using hedging instruments in the future[66](index=66&type=chunk) [Pledge of Assets](index=28&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, and December 31, 2024, the Group had no pledged assets - The Group had no pledged assets[67](index=67&type=chunk) [Employees Information and Remuneration Policy](index=28&type=section&id=Employees%20Information%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 46 employees, with staff costs of approximately HK$7,582 thousand. Salaries and benefits are maintained at competitive levels and determined discretionarily based on performance - The Group employed **46 employees** (December 31, 2024: **39 employees**)[68](index=68&type=chunk) - Staff costs (excluding directors' emoluments) for the interim period were approximately **HK$7,582 thousand** (2024: **HK$6,313 thousand**)[68](index=68&type=chunk) - Employee remuneration is determined discretionarily based on performance under an annually reviewed salary and bonus system, with contributions to statutory Mandatory Provident Fund schemes and medical plans[68](index=68&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - The Group had no material contingent liabilities[70](index=70&type=chunk) [Events After the Reporting Period](index=28&type=section&id=Events%20After%20the%20Reporting%20Period) Details of significant events after the interim period are provided in Note 19 to the unaudited condensed consolidated financial statements - Details of events after the reporting period are provided in Note 19 to the financial statements[71](index=71&type=chunk) Other Information This section covers directors' and major shareholders' interests, share option schemes, corporate governance, and other relevant disclosures [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=28&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) As of June 30, 2025, none of the Company's directors or chief executives had any disclosable interests or short positions in the shares, underlying shares, and debentures of the Company or any of its associated corporations - Directors and chief executives had no disclosable interests or short positions in the shares, underlying shares, and debentures of the Company or its associated corporations[72](index=72&type=chunk) [Directors' Right to Acquire Shares or Debentures](index=29&type=section&id=Directors%27%20Right%20to%20Acquire%20Shares%20or%20Debentures) During the interim period, neither the Company nor any of its subsidiaries was a party to any arrangement that would enable any director or chief executive to acquire benefits by purchasing shares or debt securities of the Company or any other body corporate - During the interim period, neither the Company nor its subsidiaries participated in any arrangement enabling directors or chief executives to benefit from purchasing shares or debt securities[73](index=73&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=29&type=section&id=Substantial%20Shareholders%27%20and%20Other%20Persons%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Mr. Ye Zhijian and his wholly-owned company, Hengxin Zhitou Technology (Hong Kong) Limited, were substantial shareholders of the Company, holding 28.35% of the issued shares Substantial Shareholders' Shareholdings | Name of Substantial Shareholder | Nature of Interest / Capacity | Number of Ordinary Shares Held | Percentage of Company's Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Ye Zhijian | Interest in controlled corporation | 26,600,000 | 28.35% | | Hengxin Zhitou Technology (Hong Kong) Limited | Beneficial owner | 26,600,000 | 28.35% | - Mr. Ye Zhijian is deemed to be interested in the **26,600,000 shares** of the Company held by Hengxin Zhitou Technology (Hong Kong) Limited[75](index=75&type=chunk) [Share Option Scheme](index=30&type=section&id=Share%20Option%20Scheme) The Company's share option scheme was adopted on June 18, 2024, to reward eligible participants. As of the end of the interim period, there were no outstanding share options or unvested awards - The share option scheme was adopted on June 18, 2024, for a period of ten years, aiming to reward eligible participants[77](index=77&type=chunk) - Eligible participants include directors, employees, and service providers[77](index=77&type=chunk) - At the beginning and end of the interim period, there were no outstanding share options or unvested awards, nor were any share options granted, vested, lapsed, cancelled, or exercised[77](index=77&type=chunk) [Compliance with the Standard of Dealings by Directors in Securities](index=30&type=section&id=Compliance%20with%20the%20Standard%20of%20Dealings%20by%20Directors%20in%20Securities) The Company has adopted a code of conduct no less exacting than the GEM Listing Rules, and all directors have confirmed compliance with this code during the interim period - The Company has adopted a code of conduct no less exacting than the GEM Listing Rules, and all directors have confirmed compliance[78](index=78&type=chunk) [Changes in Directors' Information](index=31&type=section&id=Changes%20in%20Directors%27%20Information) After the reporting period, several changes occurred in the Company's Board of Directors, including the resignation of an independent non-executive director, appointment of an executive director and chairman, appointment of an independent non-executive director, resignation of an executive director, and appointment of a CEO - Mr. Chan Yik Wah resigned as an independent non-executive director, effective April 1, 2025[79](index=79&type=chunk) - Mr. Tsang Chi Wan was appointed as an executive director and chairman, effective April 14, 2025, and June 6, 2025, respectively[79](index=79&type=chunk) - Ms. Qiu Mengru was appointed as an executive director and chief executive officer, effective June 6, 2025[79](index=79&type=chunk) - Mr. Zhang Wei and Ms. Zhang Yanwen resigned as executive director and independent non-executive director, respectively, effective June 6, 2025[79](index=79&type=chunk) [Interests in Competing Business](index=32&type=section&id=Interests%20in%20Competing%20Business) During the interim period, none of the Company's directors, controlling shareholders, or substantial shareholders, or their respective close associates, engaged in any business that competes or may compete with the Group's business, or had any other conflicts of interest with the Group - Directors, controlling shareholders, or substantial shareholders and their close associates did not engage in any business competing with the Group's business or have conflicts of interest[80](index=80&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=32&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the interim period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[81](index=81&type=chunk) [Corporate Governance Practices](index=32&type=section&id=Corporate%20Governance%20Practices) The Company is committed to continuously improving its corporate governance practices and complied with all code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules during the interim period - The Company complied with all code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules during the interim period[82](index=82&type=chunk) [Interim Dividend](index=32&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[83](index=83&type=chunk) [Audit Committee](index=32&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's interim financial statements and believes they are prepared in compliance with applicable accounting standards, the GEM Listing Rules, and other legal requirements, with adequate disclosures - The Audit Committee has reviewed the interim financial statements and believes they comply with applicable accounting standards, GEM Listing Rules, and other legal requirements[84](index=84&type=chunk) [By Order of the Board](index=32&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by the Board of Directors, represented by Chairman Mr. Tsang Chi Wan, and specifies the announcement date and the list of current executive and independent non-executive directors - This announcement was issued by Mr. Tsang Chi Wan, Chairman and Executive Director, on August 22, 2025[85](index=85&type=chunk)[86](index=86&type=chunk) - This announcement will be published on the Stock Exchange website and the Company's website for at least seven days[86](index=86&type=chunk)

於本公佈日期，執行董事為曾志雲先生（主席）、邱夢如女士（行政總裁）、李巍女士及王明輝 先生；以及獨立非執行董事為鄧維祐先生、陳毅奮先生、李煒先生及吳晨楠先生。 本公佈乃遵照香港聯合交易所有限公司GEM證券上市規則之規定提供有關本公司之資料。董 事願就本公佈共同及個別承擔全部責任。董事經作出一切合理查詢後確認，就彼等所深知及 確信，本公佈所載資料在各重大方面均屬準確完整，並無誤導或欺詐成分，亦無遺漏任何其他 事宜，致使本公佈所載任何聲明或本公佈產生誤導。 本公佈將自其刊發日期起計最少一連七日刊載於聯交所網站http://www.hkexnews.hk「最新上 市公司公告」一頁及本公司網站http://www.capitalfinance.hk內。 董事會會議召開日期 首都金融控股有限公司（「本公司」）謹此宣佈，本公司將於二零二五年八月二十二日（星期五） 舉行本公司董事（「董事」）會會議，旨在（其中包括）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中期業績公佈及考慮宣派中期股息（如有）。 承董事會命 首都金融控股有限公司 主席兼執行董事 曾志雲 香港，二零二五年八月十二日 香港交易及結算所有限公司及 ...

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 致：香港交易及結算所有限公司 公司名稱: 首都金融控股有限公司 呈交日期: 2025年8月4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) | 08239 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 100,000,000,000 | HKD | | 0.01 | HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 100,000,000,000 | HKD | | 0.01 | HKD | | 1,000,000,000 | ...

Key Points - A total of 133 stocks reached their 52-week highs as of July 16, with notable performers including 威雅利 (00854) at 909.12%, 绿心集团股权 (02999) at 135.29%, and 首都金融控股 (08239) at 65.22% [1] - 威雅利 (00854) closed at 12.660, with a peak price of 33.200, marking a significant increase of 909.12% [1] - 绿心集团股权 (02999) had a closing price of 0.020 and reached a high of 0.040, reflecting a growth of 135.29% [1] - 首都金融控股 (08239) closed at 1.590, with a maximum price of 1.900, indicating a rise of 65.22% [1] - Other notable stocks include 中国三三传媒 (08087) with a 59.54% increase, and 云能国际 (01298) with a 41.23% increase [1] - The report also lists stocks that reached their 52-week lows, with 百利达集团控股 (08179) at -7.14% and 昊天国际建投 (01341) at -6.28% [5]

Economic Environment - The company reported a challenging global economic environment in 2024, with ongoing geopolitical tensions and supply chain disruptions impacting recovery efforts[8]. - The company reported a decline in consumer confidence in China, influenced by the ongoing real estate debt crisis and the depreciation of the Renminbi against the US dollar[8]. - The company anticipates that the global economy in 2025 will be influenced by geopolitical tensions, trade relations, inflation, and rapid digital transformation[9]. Operational Strategy - The company aims to enhance operational efficiency by focusing on cost reduction and budget management, which is expected to improve profitability[9]. - The company plans to integrate artificial intelligence technology into its operations to adapt to the rapidly changing business environment and improve customer service[10]. - The company plans to leverage artificial intelligence and big data analytics to enhance service offerings and improve operational efficiency in response to market changes[20]. - The company is committed to strengthening post-loan management and optimizing collateral portfolios to enhance capital strength and risk management capabilities[9]. - The company emphasizes the importance of maintaining compliance and enhancing internal controls to manage risks effectively[9]. Financial Performance - Total revenue for the year ended December 31, 2024, was approximately HKD 18,863,000, a decrease of about HKD 17,370,000 compared to HKD 36,233,000 in 2023, primarily due to reduced interest income from short-term financing services in China[14]. - The expected credit loss provision for customer loans increased to approximately HKD 5,257,000, up about HKD 2,650,000 from HKD 2,607,000 in 2023, attributed to challenging market conditions in the short-term financing service sector in China[15]. - Administrative and other expenses decreased from approximately HKD 29,302,000 in 2023 to about HKD 23,172,000 in 2024, reflecting effective cost control measures implemented by the company[15]. - Financial costs decreased by approximately HKD 7,343,000 to about HKD 8,148,000 in 2024, down from HKD 15,491,000 in 2023, mainly due to the redemption of convertible bonds[16]. - The company recorded a pre-tax profit of approximately HKD 5,015,000 from short-term financing services, down from HKD 21,056,000 in 2023, primarily due to the significant revenue decline[19]. Debt and Cash Management - As of December 31, 2024, the company's debt-to-equity ratio was approximately 1.9, down from 2.2 in 2023, indicating improved financial stability[21]. - Cash and cash equivalents amounted to approximately HKD 72,243,000 as of December 31, 2024, down from HKD 93,183,000 in 2023, reflecting the need for ongoing cash flow management[21]. - The company anticipates utilizing internal cash flow and external fundraising activities to meet future cash flow requirements[21]. - The company issued new promissory notes amounting to HKD 13,650,000 to repay the outstanding principal of HKD 13,000,000 and a redemption premium of HKD 650,000 for the convertible bonds maturing on December 24, 2023[25]. - The company raised approximately HKD 7,800,000 from the placement of 15,640,000 shares at a price of HKD 0.5 per share, with a net amount of approximately HKD 7,500,000 after expenses[31]. Environmental and Social Responsibility - The company is committed to environmental and social responsibilities as part of its strategy to create value for stakeholders[48]. - The company aims to reduce greenhouse gas emissions and improve waste management as part of its environmental goals[49]. - The company has established a dedicated ESG working group to enhance transparency and accountability in its environmental, social, and governance practices[50]. - Stakeholder engagement is crucial for the company to identify significant ESG issues and set actionable goals[51]. - The company emphasizes compliance with environmental and social laws and regulations as part of its operational strategy[52]. Employee Management - The total number of employees as of December 31, 2024, is 39, unchanged from 2023[89]. - The employee turnover rate for 2024 is 15%, a significant decrease from 54% in 2023[96]. - The company has established employment policies that include equal opportunities and anti-discrimination measures, ensuring a fair workplace environment[86]. - The company provides competitive compensation and regularly reviews it to align with the job market[87]. - The company has implemented internal policies for employee training and development to enhance skills and knowledge[109]. Corporate Governance - The board of directors believes that sound corporate governance practices are essential for the company's sustainable development and the protection of stakeholder interests[140]. - The company has complied with all provisions of the corporate governance code as outlined in the GEM Listing Rules Appendix C1 during the fiscal year ending December 31, 2024[140]. - The board consists of six directors, including three executive directors and three independent non-executive directors[142]. - The company has established mechanisms to ensure the board can obtain independent opinions, enhancing its independence and effectiveness[151]. - The company is committed to providing transparent and timely financial information to stakeholders in accordance with GEM listing rules[185].

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 18,863,000, a decrease of 48.1% compared to HKD 36,233,000 in 2023[5] - Other income and gains for the same period were HKD 5,177,000, down 48.3% from HKD 10,017,000 in the previous year[5] - Loss before tax for the year was HKD 16,753,000, compared to a loss of HKD 1,617,000 in 2023, representing a significant increase in losses[5] - The net loss for the year was HKD 19,786,000, which is a 115.5% increase from HKD 9,196,000 in the previous year[5] - Basic loss per share for the year was HKD 18.63, compared to HKD 12.18 in 2023, reflecting a 53.7% increase in loss per share[5] - Customer loan interest income for 2024 was HKD 9,163 thousand, down from HKD 36,233 thousand in 2023, indicating a decrease of 74.7%[29] - The group reported a net loss before tax, with significant finance costs and employee expenses contributing to the overall financial performance[30] Assets and Liabilities - Total assets as of December 31, 2024, were HKD 117,753,000, down 36% from HKD 183,950,000 in 2023[7] - Current liabilities decreased to HKD 74,666,000 from HKD 127,570,000 in 2023, a reduction of 41.5%[8] - The company's net asset value decreased to HKD 72,148,000 from HKD 89,512,000, a decline of 19.4%[8] - The total amount of customer loans was HKD 153,890,000 in 2024, down from HKD 199,439,000 in 2023, indicating a significant contraction in lending activity[42] - The net amount of customer loans decreased from HKD 89,833,000 in 2023 to HKD 48,784,000 in 2024, reflecting a significant decline[42] Provisions and Expenses - The expected credit loss provision increased to HKD 5,257,000, up 101.5% from HKD 2,607,000 in 2023[5] - The company incurred a loss of HKD 8,819 thousand during the year, contributing to a cumulative loss of HKD 1,095,958 thousand[9] - The company expects to report a loss of HKD 16,905 thousand, which will further increase the cumulative loss to HKD 1,106,796 thousand[10] - Employee costs (excluding directors' remuneration) totaled HKD 13,643 thousand in 2024, slightly down from HKD 14,176 thousand in 2023, a decrease of 3.8%[30] - The company's administrative and other expenses decreased from approximately HKD 29,302,000 in 2023 to about HKD 23,172,000 in 2024, a reduction of approximately HKD 6,130,000[43] Share Capital and Equity - The issued share capital increased to HKD 938,000 from HKD 782,000, reflecting a growth of 19.9%[8] - For the year ended December 31, 2023, the company reported a total equity of HKD 89,512 thousand, down from HKD 101,315 thousand in the previous year, reflecting a decrease of approximately 11.6%[9] - The company issued new shares during the year, raising HKD 4,119 thousand through a placement[9] - The total net proceeds from the placement of 15,640,000 shares at HKD 0.5 per share amounted to approximately HKD 7,511,000, which was fully utilized to repay short-term debts[59] Taxation - The income tax expense for the year ended December 31, 2024, is HKD 3,033,000, a decrease of 60% from HKD 7,579,000 in 2023[35] - The company's deferred tax expense for the year ended December 31, 2024, is HKD 283,000, compared to a tax credit of HKD 1,084,000 in 2023[35] - The total income tax expense for the year includes withholding tax on dividends of HKD 1,629,000, slightly down from HKD 1,650,000 in 2023[35] Financial Stability - The debt-to-equity ratio improved to approximately 1.9 in 2024 from 2.2 in 2023, indicating better financial stability[48] - As of December 31, 2024, the company had no outstanding bank borrowings, maintaining a debt-free status compared to the previous year[51] - The company has no significant contingent liabilities as of December 31, 2024, similar to the previous year[64] Corporate Governance - The company has adhered to the GEM Listing Rules Appendix C1 Corporate Governance Code throughout the year ended December 31, 2024[69] - The company has adopted a code of conduct for directors' securities transactions equivalent to GEM Listing Rules 5.48 to 5.67, confirming compliance for the year ended December 31, 2024[70] - The audit committee reviewed the audited consolidated financial statements for the year ended December 31, 2024, and provided recommendations to the board[71] - The external auditor confirmed that the financial figures in the announcement are consistent with the audited consolidated financial statements for the year ended December 31, 2024[72] Future Plans - The company plans to upgrade its service platform by incorporating technologies such as big data analytics and artificial intelligence to enhance operational efficiency and customer satisfaction[47] - The company aims to diversify its revenue sources by actively seeking potential merger and acquisition opportunities in China and/or Hong Kong[47]

Financial Performance - The company reported unaudited consolidated revenue of HKD 5,968,000 for the six months ended June 30, 2024, a decrease of 72.1% compared to HKD 21,466,000 in the same period of 2023[2]. - Other income and gains for the same period were HKD 3,820,000, down from HKD 4,485,000 year-on-year[2]. - The company incurred a loss before tax of HKD 9,779,000, compared to a profit of HKD 9,483,000 in the previous year[2]. - The net loss attributable to the owners of the company was HKD 12,030,000, a significant decline from a profit of HKD 2,822,000 in the prior year[2]. - Basic and diluted loss per share was HKD 29.53, compared to earnings of HKD 4.24 per share in the same period last year[2]. - The company recorded a net loss of 78,819 million for the six months ending June 30, 2024, compared to a loss of 89,423 million for the same period in 2023, indicating an improvement of about 12.5%[6]. - The total comprehensive income for the first half of 2024 was reported at (15,215) million, an improvement from (17,330) million in the previous year, indicating a positive trend[5]. - The company reported a loss attributable to shareholders of HKD 12,030,000 for the six months ended June 30, 2024, compared to a profit of HKD 2,822,000 for the same period in 2023[19]. Assets and Liabilities - Total assets decreased to HKD 144,232,000 as of June 30, 2024, from HKD 183,950,000 at the end of 2023[4]. - Current liabilities were reduced to HKD 97,249,000 from HKD 127,570,000 at the end of 2023[4]. - The company's net asset value decreased to HKD 77,434,000 from HKD 89,512,000 at the end of 2023[4]. - The company’s cash and cash equivalents stood at HKD 88,250,000, down from HKD 93,183,000 at the end of 2023[4]. - As of June 30, 2024, the total customer loans amounted to HKD 158,055,000, a decrease of 20.8% from HKD 199,439,000 as of December 31, 2023[24]. - The net amount of customer loans after loss provisions was HKD 54,735,000, down 39.2% from HKD 89,833,000 as of December 31, 2023[24]. - The company’s total cash and cash equivalents decreased by HKD 2,982,000 for the six months ended June 30, 2024, compared to a decrease of HKD 23,194,000 in 2023[7]. - As of June 30, 2024, the group had other debts of approximately HKD 88,465,000, down from HKD 113,796,000 as of December 31, 2023[58]. Cash Flow and Financing Activities - Operating cash generated for the six months ended June 30, 2024, was HKD 21,985,000, compared to HKD 12,524,000 for the same period in 2023, representing a 75.5% increase[7]. - Net cash generated from operating activities for the six months ended June 30, 2024, was HKD 18,707,000, up from HKD 9,939,000 in 2023, indicating an increase of 88.0%[7]. - The company reported a net cash outflow from financing activities of HKD 21,689,000 for the six months ended June 30, 2024, compared to HKD 35,508,000 in 2023, reflecting a 38.9% improvement[7]. - The company incurred a foreign exchange loss of HKD 1,951,000 for the six months ended June 30, 2024, compared to a loss of HKD 3,461,000 in 2023, indicating a 43.6% reduction in losses[7]. - The company received a loan of HKD 170,000 from a director during the financing activities for the six months ended June 30, 2024[7]. Employee and Operational Costs - Employee costs (excluding directors' remuneration) decreased to HKD 6,313,000 in the first half of 2024 from HKD 7,743,000 in the same period of 2023, a decline of about 18%[16]. - The company’s deferred tax expense for the first half of 2024 was HKD 918,000, compared to HKD 1,863,000 in the same period of 2023, indicating a reduction of approximately 51%[17]. - The income tax expense for the first half of 2024 was HKD 3,427,000, down from HKD 5,860,000 in the same period of 2023, reflecting a decrease of approximately 42%[17]. - The company has confirmed compliance with the GEM Listing Rules regarding securities trading standards by all directors during the interim period[73]. Market Strategy and Future Outlook - The company is focused on improving its financial performance and exploring new strategies for market expansion and product development[2]. - The company plans to expand its market presence and invest in new technologies, although specific figures were not disclosed in the report[6]. - The company’s future outlook remains cautious, with a focus on improving operational efficiency and user engagement strategies[6]. - The company is exploring potential mergers and acquisitions to enhance its market position and diversify its offerings[6]. - The company plans to explore potential acquisition opportunities in China and/or Hong Kong to diversify revenue sources[55]. Share Capital and Equity - The average number of ordinary shares outstanding for the six months ended June 30, 2024, was 40,733,333 shares, down from 66,568,000 shares in the same period of 2023[20]. - The company completed a capital reorganization on February 23, 2023, reducing the par value of shares from HKD 1.00 to HKD 0.01, resulting in a total of 100,000,000,000 shares[45]. - The company issued 10,110,000 new shares at a placement price of HKD 0.42 per share on May 24, 2023, raising approximately HKD 4,246,000[46]. - A subsequent placement of 15,640,000 shares at HKD 0.50 per share was completed on March 14, 2024, generating around HKD 7,820,000[46]. - The equity portion at the end of the reporting period was HKD 8,510,000, down from HKD 10,769,000[41]. Compliance and Governance - The audit committee reviewed the unaudited condensed consolidated financial statements, confirming compliance with applicable accounting standards and sufficient disclosure[77]. - The company has not engaged in any arrangements allowing directors or executives to benefit from purchasing shares or debt securities during the reporting period[69]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or any of its subsidiaries during the interim period[76].

Financial Performance - The company reported unaudited revenue of HKD 5,968,000 for the six months ended June 30, 2024, a decrease of 72.1% compared to HKD 21,466,000 in the same period of 2023[4]. - Other income and gains for the same period were HKD 3,820,000, down from HKD 4,485,000, representing a decline of 14.8%[4]. - The loss before tax for the period was HKD 9,779,000, compared to a profit of HKD 9,483,000 in the prior year, marking a substantial shift in performance[4]. - The net loss attributable to owners of the company was HKD 12,030,000, contrasting with a profit of HKD 2,822,000 in the same period last year[4]. - The company reported a total comprehensive loss of HKD 17,330,000 for the period, compared to a total comprehensive income of HKD 7,981,000 in the previous year[5]. - For the six months ended June 30, 2024, the company reported a loss attributable to shareholders of HKD 12,030,000 compared to a profit of HKD 2,822,000 for the same period in 2023, indicating a significant decline in performance[24]. Assets and Liabilities - Total assets decreased to HKD 176,578,000 as of June 30, 2024, down from HKD 219,253,000 at the end of 2023, reflecting a decline of 19.4%[6][7]. - Current liabilities were reported at HKD 97,249,000, a decrease from HKD 127,570,000, indicating a reduction of 23.7%[7]. - The company's cash and cash equivalents stood at HKD 88,250,000, down from HKD 93,183,000, a decrease of 5.0%[6]. - The net asset value attributable to owners decreased to HKD 41,173,000 from HKD 51,136,000, representing a decline of 19.5%[7]. - As of June 30, 2024, the company's other debts amount to approximately HKD 88,465,000, down from HKD 113,796,000 as of December 31, 2023[58]. - The debt-to-equity ratio is approximately 2.1 as of June 30, 2024, down from 2.2 as of December 31, 2023[58]. Cash Flow and Operating Activities - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 18,707,000, an increase from HKD 9,939,000 in the previous year[11]. - The company reported a decrease in cash and cash equivalents of HKD 2,982,000 for the six months ended June 30, 2024, compared to a decrease of HKD 23,194,000 in the prior year[11]. - The company’s cash and cash equivalents at the end of the reporting period were HKD 88,250,000, up from HKD 78,503,000 in the previous year[11]. Credit Loss Provisions - The company incurred an expected credit loss provision of HKD 2,460,000, significantly reduced from HKD 7,452,000 in the previous year, indicating a 67.0% improvement[4]. - The expected credit loss provision for customer loans as of June 30, 2024, was HKD 103,320,000, representing approximately 65.4% of the total customer loans, compared to 55.0% as of December 31, 2023[34]. - The overdue loans exceeding 90 days amounted to HKD 111,332,000 as of June 30, 2024, an increase from HKD 106,435,000 as of December 31, 2023[32]. Employee Costs - Employee costs (excluding directors' remuneration) decreased to HKD 6,313,000 for the six months ended June 30, 2024, from HKD 7,743,000 in 2023, indicating an 18% reduction[20]. - As of June 30, 2024, the group employed 43 staff members, an increase from 39 staff members as of December 31, 2023[67]. Convertible Bonds and Debt Management - The company issued two series of zero-coupon convertible bonds totaling HKD 285,240,000, with maturity dates in December 2023 and August 2024, and a conversion price of HKD 0.05 per share[40]. - The company confirmed the issuance of new convertible bonds, which allowed for the early redemption of previous bonds, effectively restructuring its debt obligations[41]. - The company redeemed HKD 13,650,000 of the new 2022 convertible bonds through the issuance of acceptances, with a gain of approximately HKD 11,000 recognized in profit and loss[43]. - The effective interest rate for the new 2022 and 2023 convertible bonds ranges from 10.67% to 10.95%[44]. Corporate Governance and Compliance - The audit committee reviewed the unaudited condensed consolidated financial statements for the interim period, ensuring compliance with applicable accounting standards and GEM Listing Rules[82]. - The company is committed to continuously improving its corporate governance practices and has adhered to all provisions of the GEM Listing Rules Appendix C1 during the interim period[81]. - The company has adopted a code of conduct for directors that is no less stringent than the GEM Listing Rules, confirming compliance during the interim period[77]. Future Outlook and Strategy - The company anticipates a challenging global economic environment in 2024 due to geopolitical issues and ongoing conflicts in Europe and the Middle East[55]. - The company plans to explore potential acquisition opportunities in China and/or Hong Kong to diversify revenue sources[55]. - The company aims to enhance market competitiveness and reduce customer acquisition costs while improving risk management[55].