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FIRST CREDIT(08215) - 2020 - 中期财报
FIRST CREDITFIRST CREDIT(HK:08215)2020-08-12 08:44

Financial Reporting and Compliance - The interim financial information as of June 30, 2020, has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" [14] - The report includes the condensed consolidated statement of financial position and the related condensed consolidated statement of profit or loss for the six-month period ended June 30, 2020 [7] - The directors confirm that the information contained in the report is accurate and complete in all material respects [5] - The report is compliant with the GEM Listing Rules of the Stock Exchange of Hong Kong Limited [5] - The independent review report indicates no significant matters that would lead to a belief that the interim financial information is not prepared properly [14] - The report emphasizes the responsibility of the directors for the preparation and presentation of the interim financial information [7] - The review conducted is less extensive than an audit, and therefore does not provide assurance of identifying all significant matters [9] - The report was issued by Elite Partners CPA Limited, certified public accountants in Hong Kong [15] - The review was completed on August 7, 2020, confirming the financial information's compliance with relevant standards [15] Financial Performance - Revenue for the six months ended June 30, 2020, was HK$6,970,891, a decrease from HK$21,066,098 for the same period in 2019, representing a decline of approximately 66.9% [17] - Loss before tax for the six months ended June 30, 2020, was HK$137,212,463, compared to a loss of HK$154,522,164 for the same period in 2019, indicating a slight improvement [17] - Total comprehensive loss attributable to owners of the Company for the period was HK$145,359,415, significantly higher than the loss of HK$17,498,554 in the previous year [17] - Basic loss per share for the six months ended June 30, 2020, was HK$(4.01), compared to HK$(0.48) for the same period in 2019 [17] - The Group reported a loss before tax of HK$159,584,965 for the six months ended June 30, 2020, compared to a loss of HK$13,114,113 for the same period in 2019, indicating a significant increase in losses [69] - Basic loss per share for the six months ended June 30, 2020, was HK$0.044, compared to HK$0.004 for the same period in 2019, reflecting a deterioration in financial performance [69] - The Group recorded a consolidated loss attributable to owners of approximately HK$159.58 million for the Review Period, compared to a loss of approximately HK$13.11 million for the same period in 2019, primarily due to decreased revenue and increased impairment losses [128] Assets and Liabilities - Non-current assets decreased to HK$97,465,204 as of June 30, 2020, down from HK$190,687,579 at the end of 2019, reflecting a reduction of approximately 48.9% [19] - Current assets totaled HK$609,239,432 as of June 30, 2020, a decrease from HK$677,758,975 at the end of 2019, representing a decline of about 10.1% [19] - Net current assets were HK$602,997,321, down from HK$668,867,300 at the end of 2019, indicating a decrease of approximately 9.8% [19] - Total equity as of June 30, 2020, was HK$699,969,914, a decrease from HK$859,554,879 at the end of 2019, reflecting a decline of about 18.6% [21] - Loans receivable decreased significantly to HK$60,466,638 as of June 30, 2020, from HK$151,877,137 at the end of 2019, a reduction of approximately 60.2% [19] - The Group's total loans receivable amounted to HK$951,233,533 as of June 30, 2020, a decrease from HK$966,238,754 as of December 31, 2019 [81] - The total impairment allowance on loans receivable was HK$372,085,738 as of June 30, 2020, compared to HK$216,846,703 as of December 31, 2019, highlighting increased credit risk management efforts [81] Cash Flow and Financing Activities - For the six months ended June 30, 2020, the net cash generated from operating activities was HK$3,241,857, a decrease of 72.5% compared to HK$11,788,516 in the same period of 2019 [25] - The net cash used in investing activities increased to HK$492,970 from HK$158,668, representing a rise of 210.5% year-over-year [25] - The net cash used in financing activities was HK$2,952,813, compared to HK$2,490,967 in 2019, indicating an increase of 18.6% [25] - Cash and cash equivalents at the end of the period decreased to HK$16,877,964 from HK$46,494,629, marking a decline of 63.7% [25] - The cash and cash equivalents at the beginning of the period were HK$17,081,890, indicating a decrease in liquidity over the reporting period [25] - As of June 30, 2020, the Group had bank and cash balances of approximately HK$16.88 million, slightly down from approximately HK$17.08 million as of December 31, 2019 [129] - There was no bank borrowing as of June 30, 2020, and December 31, 2019 [131] Operational Segments - The Group operates in two segments: money lending and securities trading, with the former showing substantial losses during the reporting period [47] - The total revenue for the six months ended June 30, 2020, was HK$21,066,098, while the segment loss for money lending was HK$156,622,469, reflecting a significant operational challenge [43] - Segment loss for the money lending division for the six months ended June 30, 2020, was HK$5,322,009, compared to a loss of HK$4,189,139 in 2019 [50] - Total loss of reportable segments for the six months ended June 30, 2020, was HK$157,441,467, significantly higher than the loss of HK$9,511,148 in the same period of 2019 [52] - Segment assets as of June 30, 2020, were HK$673,517,194, down from HK$829,607,721 as of December 31, 2019 [50] - Segment liabilities as of June 30, 2020, were HK$7,078,744, compared to HK$8,547,366 as of December 31, 2019 [50] Management and Governance - The Group did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year [68] - The Group's management continues to maintain strict control over outstanding loans receivable to minimize credit risk, with overdue balances regularly reviewed [76] - The Group's management believes that no provision for impairment on past due loans was necessary, as these loans are expected to be substantially or fully settled [87] - The Group adopted a staff training and development policy to enhance competitiveness in the financial market [150][151] - The Company has complied with all code provisions of the Corporate Governance Code except for deviations related to the chairman's role due to the passing of the former chairman on March 9, 2020 [171] - The Board has continued to function effectively despite the absence of a chairman, with significant decisions made collectively [172] Market and Economic Conditions - There is a risk associated with investing in companies listed on GEM due to their susceptibility to high market volatility [3] - The adverse financial and economic situation caused by the COVID-19 pandemic is expected to negatively impact the financial position and repayment ability of the Group's customers in the short term [102] - The Group will maintain sufficient funding through various means to capture different potential opportunities in the market [105] - Following the cessation of the Securities Brokerage Business in mid-August 2019, the Group will focus on proprietary investments in listed securities and explore further investment opportunities [104] Employee and Shareholder Information - The total employee remuneration for the six months ended June 30, 2020, was approximately HK$8.23 million, a decrease from approximately HK$9.34 million for the same period in 2019 [143][148] - The Group employed a total of 41 staff as of June 30, 2020, down from 43 staff as of December 31, 2019 [143][148] - The interests of 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%) as of June 30, 2020 [156] Trading and Share Information - Trading in the shares of the Company has been suspended since November 24, 2017, and will remain suspended until further notice [184] - The Company has been making efforts to procure a resumption of trading of its shares, with its application still pending as of July 31, 2020 [184] - The issued and fully paid ordinary shares remained at 3,628,800,000 shares with a par value of HK$0.02 each as of June 30, 2020 [92] - The Group's authorized share capital remained at 250,000,000,000 ordinary shares as of June 30, 2020 [92] - The maximum number of ordinary shares that may be issued under the Share Option Scheme is 362,880,000, representing 10% of the issued ordinary shares as of the report date [160] - No share options have been granted under the Share Option Scheme since its adoption on November 24, 2011 [164] - The Company did not purchase, sell, or redeem any of its listed securities during the Review Period [161]