Financial Performance - Revenue for the three months ended March 31, 2021, was HK$12,981,842, a decrease of 8% compared to HK$14,095,207 for the same period in 2020[9] - The Group reported a loss before tax of HK$54,426,801, compared to a loss of HK$17,309,701 in the previous year, indicating a significant increase in losses[9] - The loss attributable to owners of the Company for the period was HK$56,302,524, compared to HK$14,225,550 in the previous year[9] - Basic loss per share for the period was HK$1.55, compared to HK$0.39 for the same period in 2020[9] - The total comprehensive loss for the period ended 31 March 2021 was HK$56,302,524, contributing to a retained loss of HK$348,887,120 as of the same date[50] - The consolidated loss attributable to owners of the Company for the Review Period was approximately HK$56.30 million, compared to approximately HK$14.23 million for the same period in 2020, driven by increased impairment losses and operating expenses[81] Impairment and Losses - Impairment loss on loans receivables, net, was HK$52,865,407, which is more than double the HK$23,199,905 reported in the same period last year[9] - The impairment loss on loans receivables, net, was HK$52,865,407 for the three months ended 31 March 2021, significantly higher than HK$23,199,905 in the same period of 2020[35] - The Group recorded an impairment loss on loans receivables of approximately HK$52.87 million for the Review Period, a significant increase from approximately HK$23.20 million for the corresponding period in 2020, reflecting a rise in overdue loans[68] - The significant increase in impairment loss is attributed to a rise in overdue loans and uncertainty in repayment performance from certain customers[74] - The COVID-19 pandemic has led to a significant increase in credit risk, contributing to the rise in impairment losses on loans receivables during the Review Period[74] Expenses and Costs - Administrative expenses decreased to HK$4,399,177 from HK$6,344,189, reflecting a reduction of approximately 30.7%[9] - Interest expenses on bond payable amounted to HK$197,260 for the three months ended 31 March 2021, with total finance costs reaching HK$229,413, compared to HK$20,611 in the previous year[29] - Other operating expenses increased to approximately HK$6.13 million for the Review Period, compared to approximately HK$1.84 million for the three months ended 31 March 2020, primarily due to higher debt recovery agency service fees and legal fees[78] - Finance costs rose to approximately HK$0.23 million for the Review Period, up from approximately HK$0.02 million for the three months ended 31 March 2020, mainly due to interest expenses on consideration payable and a one-year bond issued by a subsidiary[80] Shareholder Information - Xiao Guoliang holds 1,070,400,000 ordinary shares, representing 29.50% of the company's issued share capital[92] - Ng Kam Lung Volais holds 1,013,040,000 ordinary shares, representing 27.92% of the company's issued share capital[92] - The maximum number of ordinary shares that may be issued under the Share Option Scheme is 362,880,000, which is 10% of the issued ordinary shares as of the report date[97] - No share options have been granted under the Share Option Scheme since its adoption on November 24, 2011[100] - The company did not purchase, sell, or redeem any of its listed securities during the review period[98] - Trading in the company's shares has been suspended since November 24, 2017, and will remain suspended until further notice[110] - The company has made further submissions to the SFC on April 13, 2021, regarding the resumption of trading[110] Corporate Governance - The audit committee comprises four independent non-executive directors and has reviewed the unaudited condensed consolidated results for the review period[113] - The company confirms that there are no competing interests among directors or their close associates during the review period[106] - The company has no controlling shareholder, thus no issues of competing interests from controlling shareholders[106] Market Conditions and Strategy - The Company continues to face high market volatility risks associated with being listed on the GEM of the Stock Exchange[4] - The Group expects that the challenging economic environment due to COVID-19 may continue to affect loan demand and lending risks in the short term[55] - The Group aims to maintain revenue growth and credit quality while ensuring a proper balance between return and risk in the long run[55] - The Group will explore further potential investment opportunities in various financial instruments, including bonds and equity securities, to maximize shareholder value[55] - The Group will maintain a prudent approach in loan assessment and approval processes to safeguard its loan portfolio[55] - The Group will keep monitoring the repayment performance of its loan portfolio and evaluate the repayment ability of its customers[55] Financial Reporting Standards - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2021, with no significant impact on the financial statements[17] Credit Risk Management - The Group will continue to monitor credit risk and modify its credit assessments and control measures as necessary to manage loan receivables[58] - The Group performs collective assessments on impairment allowances for loans receivables at least quarterly, using a provision matrix based on loan types and their credit risk characteristics[72] - Individual assessments for impairment allowances are conducted monthly, considering factors such as expected recovery dates and the fair value of collateral[73] - The measurement of impairment allowances considers the probability of default and loss given default, adjusted for economic conditions and expected unemployment rates[72]
FIRST CREDIT(08215) - 2021 Q1 - 季度财报