Financial Performance - First Credit Finance Group Limited reported a revenue increase of 5.7% in the annual report for 2019[1] - The total assets of the company reached approximately HKD 11,126.98 million, reflecting a growth of 2.4%[1] - The Group's revenue for the year ended December 31, 2019, was approximately HK$88.88 million, a decrease of approximately 4.18% compared to HK$92.76 million for the year ended December 31, 2018[23] - The average loan balance increased from approximately HK$897.42 million as of December 31, 2018, to approximately HK$961.89 million as of December 31, 2019, representing a growth of approximately 7.18%[15] - Revenue from unsecured loans totaled HK$70.83 million in 2019, compared to HK$68.69 million in 2018, while revenue from secured loans decreased to HK$18.04 million from HK$24.05 million[32] - Other income significantly dropped by approximately 99.36%, from HK$6.17 million in 2018 to HK$0.04 million in 2019, mainly due to the absence of one-off compensation income[40] - The Group recorded a loss attributable to owners of approximately HK$132.89 million for the year ended 31 December 2019, compared to a profit of approximately HK$25.93 million for the year ended 31 December 2018[68] Strategic Focus - The company aims to expand its market presence and enhance its product offerings in the coming years[1] - Future performance guidance indicates a focus on increasing user engagement and customer base[1] - The company is actively pursuing new product development and technological advancements to stay competitive[1] - There is a strategic emphasis on mergers and acquisitions to bolster growth and market share[1] - The Group aims to maintain revenue growth and credit quality while ensuring sufficient funding for potential opportunities[21] - The Group's strategy includes diversifying its customer base to enhance competitiveness in the money lending industry[15] Corporate Governance - The management highlighted the importance of maintaining compliance with GEM Listing Rules to ensure transparency[5] - The company is committed to improving its corporate governance practices to enhance investor confidence[5] - The Company has complied with all corporate governance code provisions except for code provision A.6.5 during the year ended December 31, 2019[90] - The Board is responsible for formulating the Group's long-term strategy and supervising management to ensure effective performance of their duties[92] - The Company is committed to maintaining high standards of corporate governance to safeguard shareholders' interests[90] - The roles of Chairman and Chief Executive Officer were held by different individuals to ensure a clear division of responsibilities and independence[105] Risk Management - The Group's focus remains on strengthening credit risk control by reviewing and modifying current credit assessments and control measures[15] - The Company’s risk management and internal control systems are designed to identify and monitor risks from day-to-day operations, ensuring optimal risk levels while facilitating business development[190] - The Board conducted an annual review of the effectiveness of the Risk Management and Internal Control (RM & IC) Systems for the year ended December 31, 2019, and deemed these systems effective and adequate[199] Compliance and Regulatory Matters - The Group acknowledges the higher investment risks associated with being listed on GEM, which may affect market volatility[2] - The compliance committee regularly reviews the Group's adherence to the Money Lenders Ordinance and other relevant regulations[170] - The Company has taken appropriate measures to comply with various regulatory requirements, including the Bermuda Economic Substance Act and amendments to GEM Listing Rules[181] Operational Changes - The Group ceased its Securities Brokerage Business in mid-August 2019, leading to negligible revenue from this segment in the current year[16] - The Group will continue to engage in proprietary investment in listed securities while monitoring its cash position and exploring potential investment opportunities[17] - The Group recorded other losses of approximately HK$3.95 million in 2019, compared to gains of approximately HK$1.19 million in 2018, attributed to fair value losses on investments[41] Financial Metrics - The average interest rate in the money lending business decreased from approximately 10.33% per annum in 2018 to approximately 9.24% per annum in 2019, contributing to the overall revenue decline[24] - The net interest margin for the Group was approximately 8.95% for the year ended December 31, 2019, down from approximately 9.89% for the corresponding period in 2018[33] - The Group's net current assets amounted to approximately HK$668.87 million as of 31 December 2019, compared to approximately HK$548.07 million as of 31 December 2018, with a current ratio of approximately 76.22 times[72] - The Group's liquidity was considered satisfactory by the Board, with no bank borrowings as of 31 December 2019[72] Board and Committee Activities - The audit committee held 5 meetings during the year, with all members attending 100% of the meetings[128] - The nomination committee held a total of 3 meetings during the year ended 31 December 2019[141] - The remuneration committee held a total of 4 meetings during the year ended 31 December 2019[156] - The credit committee held 2 meetings during the year ended 31 December 2019 to oversee the Group's credit policy and loan portfolio[167] - The compliance committee, comprising one executive Director and four independent non-executive Directors, also held 2 meetings during the year ended 31 December 2019[176]
FIRST CREDIT(08215) - 2019 - 年度财报