Financial Performance - Revenue for the three months ended March 31, 2020, was HK$14,095,207, a decrease of 40.2% compared to HK$23,541,788 for the same period in 2019[7]. - The loss before tax for the period was HK$17,309,701, contrasting with a profit of HK$5,341,558 in the same period last year[7]. - The total comprehensive loss attributable to owners of the Company was HK$14,225,550, compared to a profit of HK$4,384,441 in the same period of 2019[7]. - Basic loss per share for the period was HK$0.39, compared to earnings of HK$0.12 per share in the previous year[7]. - For the three months ended 31 March 2020, the Group reported a loss of HK$14,225,550 compared to a profit of HK$4,384,441 for the same period in 2019[30][31]. - The Group recorded a loss attributable to owners of the Company of approximately HK$14.23 million for the Review Period, a turnaround from a profit of approximately HK$4.38 million for the three months ended 31 March 2019[67]. - The loss was mainly attributable to a decrease in revenue and a significant increase in impairment loss on loans receivable during the Review Period[67]. Expenses and Costs - Administrative expenses decreased to HK$6,344,189 from HK$7,478,843, reflecting a reduction of 15.2% year-over-year[7]. - Other operating expenses decreased to approximately HK$1.84 million from approximately HK$3.30 million for the three months ended 31 March 2019, mainly due to a reduction in legal and professional fees[67]. - Interest on lease liabilities decreased to HK$20,611 from HK$70,285 year-on-year, reflecting a reduction of approximately 70.7%[18]. - Depreciation of property, plant, and equipment was HK$143,154, down from HK$1,005,355 in the previous year, indicating a significant decrease of approximately 85.8%[21]. - Finance costs remained stable at approximately HK$0.02 million for the Review Period, compared to approximately HK$0.07 million for the three months ended 31 March 2019[67]. Impairment and Credit Risk - Impairment loss on loans receivable increased significantly to HK$23,199,905, compared to HK$7,352,850 in the previous year, indicating a rise of 215.5%[7]. - The Group recorded an impairment loss on loans receivable of approximately HK$23.20 million, a significant increase from approximately HK$7.35 million in the same period in 2019, mainly due to an increase in past due loans[60]. - The Group will continue to monitor credit risk and adjust its credit assessments and control measures as necessary[48]. - The Company continues to face challenges in loan impairment and revenue generation due to market conditions[7]. Taxation - The income tax credit for the period was HK$3,084,151, compared to an expense of HK$957,117 in the previous year[7]. - The Group's deferred tax credit for the period was HK$492,757, compared to an expense of HK$2,240,280 in the previous year[23][24]. Business Operations and Strategy - The Group continues to focus on money lending business, providing both secured and unsecured loans to various customer segments[39]. - The Group aims to maintain revenue growth and credit quality while monitoring its capital base to ensure sufficient funding for future opportunities[42]. - The cessation of the Securities Brokerage Business in mid-August 2019 resulted in no commission income from securities brokerage services during the Review Period[47]. - The Group is exploring potential investment opportunities in bonds, debt instruments, and listed equity securities following the cessation of its securities brokerage business[41]. - The Group is actively exploring potential investment opportunities, including bonds and debt instruments, to maximize shareholder value[46]. Shareholder Information - As of 31 March 2020, substantial shareholders included Xiao Guoliang with 1,070,400,000 shares (29.50%) and Ng Kam Lung Volais with 1,013,040,000 shares (27.92%) of the Company[72]. - The Company adopted a Share Option Scheme on 24 November 2011, allowing for the issuance of up to 362,880,000 ordinary shares, representing 10% of the issued ordinary shares as of the report date[76][77]. - No share options have been granted under the Share Option Scheme since its adoption[81]. - The Company did not purchase, sell, or redeem any of its listed securities during the Review Period[78]. Trading and Compliance - Trading in the shares of the Company has been suspended since 24 November 2017 and will remain suspended until further notice[86]. - The company submitted written representations to the SFC on October 31, 2019, and January 16, 2020, and is currently awaiting a response regarding its trade resumption application[89]. - The company cannot provide a concrete resumption timeframe due to uncertainty regarding the SFC's satisfaction with its further written representations[91]. - The Audit Committee, comprising four independent non-executive Directors, has reviewed the unaudited condensed consolidated results for the review period[94]. - The Board believes that the financial information prepared complies with applicable accounting standards and GEM Listing Rules[95].
FIRST CREDIT(08215) - 2020 Q1 - 季度财报