Financial Performance - Revenue for the Group decreased to approximately HK$92.76 million, down from approximately HK$116.19 million in the previous year, indicating a decrease of about 20.14%[48] - Profit attributable to owners of the Company was approximately HK$25.93 million, reflecting a decrease of approximately 51.25% compared to the previous year[48] - The Group's average loan balance decreased from approximately HK$974.70 million as of December 31, 2017, to approximately HK$897.42 million as of December 31, 2018, representing a decline of about 7.93%[48] - The Group's revenue fell from approximately HK$116.19 million to approximately HK$92.76 million, a decrease of about 20.1% year-over-year[53] - Profit attributable to the owners of the company was approximately HK$25.93 million, down approximately 51.25% compared to the previous year[53] - The profit attributable to owners of the Company decreased by approximately 51.25%, from approximately HK$53.18 million in 2017 to approximately HK$25.93 million in 2018, mainly due to decreased revenue and increased impairment losses[114] Loan and Interest Management - The average interest rate in the money lending business fell from approximately 11.89% per annum in 2017 to approximately 10.33% per annum in 2018[72] - The Group recorded a net interest margin of approximately 9.89% for 2018, down from approximately 10.93% in 2017[79] - The revenue from unsecured loans was HK$68.69 million in 2018, down from HK$79.21 million in 2017[78] - The revenue from secured loans was HK$24.05 million in 2018, down from HK$36.67 million in 2017[78] - The Group's pricing strategy was influenced by a low interest rate environment in the competitive money lending industry[80] Business Operations and Strategy - The Group plans to expand its loan portfolio by diversifying its customer base, particularly targeting individual and corporate customers from different market segments[61] - The Group intends to expand its customer base into Mainland China and Macau to enhance its money lending business amid local market competition[64] - The Group aims to maintain liquidity for its money lending business while exploring potential investment opportunities in bonds, debt instruments, and listed equity securities[63] - The securities related business remained stagnant during the year under review due to continuous industry challenges[49] - The Group's securities trading business experienced a revenue decline due to intense market competition, necessitating additional time to develop its customer base[62] - In February 2019, Asia Wealth Securities received approval to commence margin financing business, which is expected to provide a new revenue source in the future[62] Expenses and Cost Management - Administrative expenses decreased to approximately HK$33.73 million in 2018 from approximately HK$43.85 million in 2017[94] - The Group's total administrative expenses for 2018 were approximately HK$33.73 million, down from HK$43.85 million in 2017, indicating a reduction in overall operational costs[97] - Employment expenses decreased from approximately HK$33.70 million in 2017 to approximately HK$22.02 million in 2018, reflecting the absence of performance-related bonuses[97] - Other operating expenses increased from approximately HK$12.24 million in 2017 to approximately HK$17.58 million in 2018, mainly due to higher legal and professional fees[105] - Finance costs decreased significantly from approximately HK$9.39 million in 2017 to approximately HK$1.58 million in 2018, attributed to the full repayment of a loan during the year[110] Impairment and Losses - For the year ended December 31, 2018, the Group recorded an impairment loss on loans receivable of approximately HK$15.63 million, a significant increase from approximately HK$2.59 million in 2017, due to the application of a new impairment methodology[99] - Other gains decreased significantly from approximately HK$14.54 million in 2017 to approximately HK$1.19 million in 2018[86] Corporate Governance - The company complied with all provisions of the Corporate Governance Code throughout the year ended December 31, 2018[155] - The Board includes at least three independent non-executive Directors, representing at least one-third of the Board[166] - The company has adopted a code of conduct for securities transactions by directors, with no incidents of non-compliance noted during the year[156] - The Board is responsible for formulating the Group's long-term strategy and supervising management to ensure effective performance[157] - The company must ensure that one-third of the Directors retire by rotation at each annual general meeting[170] - The company has complied with GEM Listing Rules regarding the composition of the Board and the qualifications of independent non-executive Directors[171] Audit and Compliance - The audit committee held a total of 5 meetings during the year ended December 31, 2018[195] - The audit committee comprises four independent non-executive directors, including Mr. Choy Sze Chung Jojo as chairman[193] - The primary function of the audit committee is to monitor the integrity of the Company's financial statements and review financial and accounting policies[198] - RSM Hong Kong resigned as auditors on December 20, 2018, due to disagreements over audit fees, and Elite Partners CPA Limited was appointed as the new auditors[200] - The audit committee made recommendations to the Board regarding the appointment and re-appointment of external auditors after reviewing their scope of work and remuneration[197] Share Trading and Suspension - Trading in the shares of the Company has been suspended since November 24, 2017, and will remain suspended until further notice[143] - The company submitted documents on November 14, 2018, requesting the unconditional and immediate withdrawal of the suspension directive[149] - The company's shares have been suspended from trading since November 24, 2017, and will remain suspended until further notice[148] Financial Position - As of December 31, 2018, the Group had bank and cash balances of approximately HK$37.36 million, a decrease from approximately HK$202.02 million in 2017, primarily due to loan repayment[118] - The Group's net current assets amounted to approximately HK$548.07 million as of December 31, 2018, down from approximately HK$608.10 million in 2017, with a current ratio of approximately 173.86 times[121] - The Group had no loan notes and no interest-bearing loans as of December 31, 2018, compared to HK$150 million in interest-bearing loans in 2017[120] - The Group recorded an increase in net cash to approximately HK$34.34 million as of December 31, 2018, compared to approximately HK$28.3 million as of December 31, 2017, resulting in a negative gearing ratio of approximately -3.58%[132] - The Group did not hold any significant investments as of December 31, 2018[128] - There were no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended December 31, 2018[123] - The Group has no specific plans for material investments or capital assets as of December 31, 2018[125] - The Group's assets were not pledged as security for any liabilities as of December 31, 2018[131]
FIRST CREDIT(08215) - 2018 - 年度财报