Financial Performance - The Group's revenue for the year ended December 31, 2023, was approximately HK$6.35 million, representing a decrease of approximately 87.46% from HK$50.69 million for the year ended December 31, 2022[30]. - The revenue from personal loans decreased significantly from HK$43.18 million in 2022 to HK$1.58 million in 2023[36]. - The Group recorded a consolidated loss attributable to owners of approximately HK$152.95 million for the year ended December 31, 2023, a decrease from HK$182.48 million in 2022[89]. - Other income decreased from approximately HK$0.72 million in 2022 to approximately HK$0.03 million in 2023, primarily due to the adjustment of long outstanding temporary receipts[48]. - The Group recorded other losses of approximately HK$4.53 million in 2023, a decrease from approximately HK$29.54 million in 2022, mainly due to a reduction in fair value loss on financial assets[49]. Loan Portfolio and Risk Management - The average loan balance decreased from approximately HK$611.73 million as of December 31, 2022, to approximately HK$595.00 million as of December 31, 2023[21]. - The Group is focused on conducting money lending business by providing both secured and unsecured loans to individuals, corporations, and foreign domestic workers[21]. - The Group aims to maintain its loan portfolio while closely monitoring the repayment performance of its loans[22]. - The Group acknowledges the increased lending risks due to financial difficulties faced by customers[22]. - The Group will continue to monitor credit risk and adjust credit assessments as necessary to maintain revenue and credit quality[31]. - The Group recorded an impairment loss on loans receivables of approximately HK$137.07 million for the year ended December 31, 2023, compared to approximately HK$43.14 million for the corresponding period in 2022, indicating a significant increase in impairment losses[58]. - Expected credit loss (ECL) on individual assessment increased significantly to HK$130.22 million in 2023 from a recovery of HK$0.92 million in 2022[75]. - Total ECL for the year was HK$137.07 million, compared to HK$43.14 million in the previous year, indicating a substantial rise in credit risk[75]. Operational Efficiency - The Company is implementing various measures in budget control to manage expenses effectively[23]. - Administrative expenses decreased to approximately HK$10.12 million for the year ended December 31, 2023 from approximately HK$13.86 million for the year ended December 31, 2022, attributed to lower employment expenses and depreciation charges[55]. - Employment expenses specifically decreased from approximately HK$9.35 million in 2022 to approximately HK$7.04 million in 2023[56]. - Other operating expenses decreased to approximately HK$5.29 million in 2023 from HK$10.10 million in 2022, primarily due to reduced service fees for debt recovery[78]. - Finance costs decreased to approximately HK$0.15 million in 2023 from HK$0.55 million in 2022, reflecting lower interest expenses on lease liabilities and bonds[85]. Cash and Capital Management - The Group's bank and cash balances were approximately HK$3.74 million as of December 31, 2023, indicating adequate funds to maintain operations[23]. - The Group's capital base as of December 31, 2023, was approximately HK$3.74 million, indicating sufficient funds to maintain operations in the current economic environment[25]. - As of December 31, 2023, the Group's bank and cash balances were approximately HK$3.74 million, down from HK$19.84 million in 2022[93]. - The current ratio decreased to approximately 50.55 times in 2023 from 125.19 times in 2022, mainly due to an increase in bond payable[94]. - The Group recorded a net cash of approximately HK$3.74 million as of December 31, 2023, down from HK$17.93 million in 2022, resulting in a zero gearing ratio for both years[108]. Corporate Governance - The Company has complied with all corporate governance code provisions except for specific deviations noted in the report[132]. - The Board consists of at least three independent non-executive Directors, representing at least one-third of the Board[137]. - Each independent non-executive Director has confirmed their independence in accordance with GEM Listing Rules[138]. - The Board is responsible for the Group's long-term strategy and significant transactions, ensuring effective performance of management[135]. - The roles of Chairman and CEO are separate, but the position of Chairman has remained vacant since March 2020[149]. - The Board continues to function effectively despite the absence of a Chairman, with decisions made collectively[150]. - The company has service agreements with executive Directors for terms of no more than three years[148]. - The audit committee held five meetings during the year ended December 31, 2023, ensuring compliance with the CG Code[176]. - The nomination committee, comprising four independent non-executive Directors, held 2 meetings during the year, focusing on Board composition and succession planning[184]. - The remuneration committee, also consisting of four independent non-executive Directors, is responsible for reviewing and recommending Director remuneration[194]. Staff and Training - The Group employed a total of 12 full-time staff as of 31 December 2023, a reduction from 31 staff in 2022, with total employee remuneration decreasing to approximately HK$6.90 million[105]. - The total employee compensation for the year ended December 31, 2023, was approximately HK$6,900,000, a decrease from approximately HK$9,100,000 in 2022, with a total of 12 full-time employees as of the end of 2023[110]. - The Group has adopted a staff training and development policy to enhance competitiveness in the financial market[110]. Market Conditions - The global economic downturn has adversely affected many businesses in Hong Kong, impacting the loan repayment ability of some customers[22]. - The money lending industry is facing challenges due to the statutory interest rate cap being amended from 60% to 48% per annum since the end of 2022[29]. Trading and Investments - Trading in the shares of the Company has been suspended since November 24, 2017, and will remain suspended until further notice[115]. - The Company has not held any significant investments exceeding 5% of its total assets as of December 31, 2023[109]. - The Group did not hold any significant investments exceeding 5% of total asset value as of December 31, 2023[104]. - There were no material acquisitions or disposals during the year, and no specific future plans for significant investments or capital assets were noted[97].
FIRST CREDIT(08215) - 2023 - 年度财报