Financial Reporting Standards - The interim financial information as of June 30, 2019, is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" [15] - The report includes the condensed consolidated statement of financial position and the related condensed consolidated statement of profit or loss for the six months ended June 30, 2019 [9] - The comparative financial statements for the six months ended June 30, 2018, have not been reviewed in accordance with the relevant standards [16] - The independent review report does not express an audit opinion but concludes that nothing has come to attention that would indicate the financial information is not prepared correctly [15] - The independent auditor's review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 [11] Financial Performance - Revenue for the three months ended June 30, 2019, was HK$23,165,092, an increase from HK$22,918,078 in the same period of 2018, representing a growth of approximately 1.08% [20] - The loss before tax for the six months ended June 30, 2019, was HK$15,158,429, compared to a profit of HK$19,830,108 in the same period of 2018, indicating a significant decline [20] - Basic loss per share for the three months ended June 30, 2019, was HK$0.48, compared to earnings of HK$0.02 per share in the same period of 2018 [20] - The company reported a comprehensive loss of HK$17,498,554 for the three months ended June 30, 2019, compared to a profit of HK$801,191 in the same period of 2018 [20] - For the six months ended June 30, 2019, total revenue was HK$46,706,880, a slight decrease from HK$48,511,601 for the same period in 2018 [73] - The total segment loss for the six months ended June 30, 2019, was HK$9,511,148, compared to a profit of HK$16,107,731 in the same period of 2018 [73] - The Group recorded a loss attributable to owners of approximately HK$13.11 million for the Review Period, compared to a profit of approximately HK$16.80 million for the six months ended 30 June 2018 [180] Assets and Liabilities - Total non-current assets decreased to HK$286,051,888 as of June 30, 2019, from HK$444,382,934 as of December 31, 2018, reflecting a decline of approximately 35.7% [22] - Current assets increased to HK$702,336,880 as of June 30, 2019, compared to HK$551,235,605 as of December 31, 2018, showing an increase of approximately 27.4% [22] - Total current liabilities rose to HK$8,991,441 as of June 30, 2019, from HK$3,170,589 as of December 31, 2018, indicating an increase of approximately 183.5% [22] - Net current assets improved to HK$693,345,439 as of June 30, 2019, compared to HK$548,065,016 as of December 31, 2018, representing an increase of approximately 26.5% [22] - The total assets less current liabilities as of June 30, 2019, were HK$979,397,327, slightly down from HK$992,447,950 as of December 31, 2018 [24] Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2019, was HK$11,788,516, a decrease of 51.8% compared to HK$24,414,713 in 2018 [29] - Net cash used in investing activities was HK$158,668, compared to a net cash generated of HK$507,492 in the same period of 2018 [29] - Net cash used in financing activities was HK$2,490,967, significantly lower than HK$151,582,846 in the previous year [29] - The net increase in cash and cash equivalents for the period was HK$9,138,881, contrasting with a net decrease of HK$126,660,641 in 2018 [29] - Cash and cash equivalents at the end of the period stood at HK$46,494,629, down from HK$75,359,860 at the end of June 2018 [29] Segment Information - The company operates in two segments: money lending and securities trading, with segment profit/loss reported before unallocated other income and corporate expenses [69] - The money lending segment reported a revenue of HK$46,703,822, while the securities trading segment generated HK$3,058 [73] - The company recognized a segment loss of HK$5,322,009 in the money lending segment for the six months ended June 30, 2019 [73] - As of June 30, 2019, segment assets amounted to HK$975,988,826, while segment liabilities were HK$6,153,358 [78] Impairment and Credit Risk - The impairment allowance on collective assessment increased significantly to HK$55,387,932 from HK$17,633,985 in the previous period, indicating a rise in credit risk [113] - The net charge for impairment allowance for loans receivable was HK$31,975,445 for the six months ended June 30, 2019, compared to HK$9,679,235 in the previous period [113] - Impaired loans increased significantly to HK$69,871,657 from HK$30,821,381, indicating a rise in financial difficulties among clients [120] - The company maintained strict control over its outstanding loans receivable to minimize credit risk, with overdue balances regularly reviewed by management [114] Business Strategy and Operations - The Group has decided to cease the Securities Brokerage Business effective from August 16, 2019, due to underperformance since the acquisition of Asia Wealth Securities [186] - The Group is actively exploring potential investment opportunities, including bonds, debt instruments, and project-based investments [155] - The Board believes that the cessation of the Securities Brokerage Business will not materially impact the Group's financial performance and will allow better resource allocation towards its money lending business [189] - The Group aims to maintain revenue growth and credit quality while ensuring sufficient funding to support various potential opportunities [156] Share Capital and Ownership - The total issued and fully paid share capital was HK$72,576,000 as of June 30, 2019, with 3,628,800,000 shares issued [139] - As of June 30, 2019, Xiao Guoliang holds 1,070,400,000 shares, representing 29.50% of the Company's issued share capital, while Ng Kam Lung Volais holds 1,013,040,000 shares, representing 27.92% [200]
FIRST CREDIT(08215) - 2019 - 中期财报