Revenue and Financial Performance - Revenue for the nine months ended September 30, 2021, was HK$42,839,032, representing an increase of 65% compared to HK$25,946,071 for the same period in 2020[8]. - Interest income from loan facilities amounted to HK$42,839,032, up from HK$25,946,071 in 2020, with credit-impaired loans contributing HK$30,771,356[13][17]. - The profit before tax for the period was HK$391,650, a turnaround from a loss of HK$198,945,602 in 2020[8]. - Basic loss per share improved to HK$0.21 from HK$5.88 in 2020, reflecting better financial performance[8]. - The total comprehensive loss for the period ended September 30, 2021, was HK$7,739,220, compared to a total comprehensive loss of HK$213,354,848 for the same period in 2020[41]. - The Group recorded a consolidated loss attributable to owners of the Company of approximately HK$7.74 million for the Review Period, significantly reduced from approximately HK$213.35 million for the same period in 2020[92]. - The Group's overall financial performance improved due to increased revenue and a significant decrease in impairment losses during the Review Period[92]. Expenses and Cost Management - Other income decreased significantly to HK$425,410 from HK$1,944,107 in the previous year, primarily due to the absence of government subsidy income in 2021[20]. - Administrative expenses were reduced to HK$10,942,619 from HK$20,087,993, indicating a cost control strategy[8]. - Other operating expenses increased to approximately HK$11.91 million for the Review Period, compared to approximately HK$6.56 million for the nine months ended September 30, 2020, primarily due to increased service fees for debt recovery agencies and legal fees[88]. - Total finance costs for the nine months ended September 30, 2021, amounted to HK$687,938, compared to HK$233,029 in 2020, reflecting an increase of approximately 195%[27]. - The increase in finance costs was primarily due to interest expenses on lease liabilities and consideration payable[92]. Impairment and Credit Risk Management - The Group experienced a reversal of impairment loss on loans receivables of approximately HK$16.02 million, a significant improvement compared to a net impairment loss of approximately HK$197.18 million for the same period in 2020[78]. - The Group's impairment loss on loans receivables significantly decreased during the Review Period due to effective bad debt control policies[81]. - The Group conducts collective assessments of impairment provisions for receivables at least quarterly, categorizing loans by type and calculating expected credit losses based on historical repayment performance and forward-looking data[82]. - The Group performs independent monthly assessments of impairment provisions for receivables, considering expected recovery dates and the fair value of collateral[82]. Shareholder and Market Information - The Group did not recommend any dividend payment to shareholders for the nine months ended September 30, 2021, consistent with the previous year[36]. - As of September 30, 2021, Xiao Guoliang held 1,070,400,000 ordinary shares, representing approximately 29.50% of the Company's issued share capital[99]. - The maximum number of ordinary shares that may be issued under the Share Option Scheme is 362,880,000 shares, representing 10% of the issued ordinary shares of the Company as of the report date[103]. - No share options have been granted under the Share Option Scheme since its adoption on November 24, 2011[103]. - Trading in the shares of the Company has been suspended since November 24, 2017, and will remain suspended until further notice[113]. - The Company is actively communicating with the Securities and Futures Commission (SFC) to address concerns and aims for a resumption of trading as soon as possible[116]. - The Company's trade resumption application is still pending, and no concrete resumption timeframe can be provided at this stage[116]. Future Strategies and Market Opportunities - The Group continues to focus on enhancing its loan facilities and managing credit risks effectively to improve financial outcomes[8]. - Future strategies may include exploring new market opportunities and potential product innovations to drive growth[8]. - The Group is actively exploring further potential investment opportunities, including bonds and listed equity securities, to maximize shareholder value[4]. - The Group will continue to monitor its capital base to ensure sufficient funding for capturing different potential opportunities in the market[4]. - The Group's focus remains on maintaining revenue growth and credit quality in the competitive money lending industry[4]. Compliance and Governance - The Group has adopted all relevant amended Hong Kong Financial Reporting Standards effective from January 1, 2021, with no significant impact on the financial statements[12]. - The Audit Committee, comprising four independent non-executive Directors, has reviewed the Group's unaudited condensed consolidated results for the Review Period[118]. - The Board believes that the preparation of financial information complies with applicable accounting standards and GEM Listing Rules[118]. - The Company did not have any controlling shareholder during the Review Period, thus no competing interests were reported[110]. - The Company has not disclosed any new product or technology developments, market expansions, or mergers during the Review Period[110].
FIRST CREDIT(08215) - 2021 Q3 - 季度财报