Financial Performance - The Group's revenue for the year ended December 31, 2024, was approximately HK$1.83 million, representing a decrease of approximately 71.18% from HK$6.35 million for the year ended December 31, 2023[27]. - The decrease in revenue was mainly due to a reduction in accrued interest from credit-impaired loans receivables during the year[28]. - The Group recorded a consolidated loss attributable to owners of approximately HK$85.99 million for the year ended 31 December 2024, a decrease from approximately HK$152.95 million in 2023, primarily due to a significant decrease in impairment on loans and interest receivables[70][71]. - The Group's loan balance decreased from approximately HK$96.59 million as of December 31, 2023, to approximately HK$12.29 million as of December 31, 2024, representing a decline of about 87.3%[17]. - The Group's bank and cash balances were approximately HK$2.43 million as of December 31, 2024, indicating adequate funds to maintain operations under the current economic environment[21]. - The net current assets of the Group amounted to approximately HK$15.45 million as of 31 December 2024, a decrease from approximately HK$97.46 million in 2023, resulting in a current ratio of approximately 13.28 times compared to 50.55 times in 2023[75]. - The Group has maintained a zero gearing ratio as of 31 December 2024, with net cash of approximately HK$2.43 million[89]. Loan Management and Strategy - The Company adopted a more cautious approach to granting new loans due to a negative outlook on the local economy, leading to a decrease in interest income during the 2023 and 2024 fiscal years[18]. - The Company plans to focus on identifying high-quality individual customers for personal loans in 2025, implementing more stringent criteria to control default risk[20]. - The conservative lending strategy adopted by the Company has been a response to the adverse impacts of the global economic recession on its business and profitability[19]. - The Group's focus remains on conducting money lending business, providing both secured and unsecured loans to a diverse customer base[17]. - The Company will prioritize efforts on loan repayment collection through the Credit Control Department and debt collection agencies in Hong Kong and the PRC in the first half of 2025[20]. - The Group aims to focus resources on developing quality personal loans and will implement stricter standards in customer selection to control default risks[23]. Impairment and Credit Risk - The Group recorded a reversal of impairment loss on loans receivables of approximately HK$7.03 million for the year ended December 31, 2024, compared to an impairment loss of approximately HK$137.07 million in 2023[48]. - The impairment loss on interests receivables was approximately HK$90.95 million for the year ended December 31, 2024, compared to HK$2.16 million for the corresponding period in 2023[49]. - The expected credit loss (ECL) on individual assessment for loans was HK$61,174,000 in 2024, down from HK$130,223,000 in 2023, while the collective assessment showed a reversal of HK$68,208,000 in 2024 compared to an ECL of HK$6,846,000 in 2023[61]. - The Group conducts collective assessments on impairment allowances for loans and interests receivables at least quarterly, categorizing them by loan types to calculate ECL based on credit risk characteristics[52]. - Monthly individual assessments are also performed for impairment allowances, considering factors such as expected recovery dates and the fair value of collateral[53]. - Credit risk assessments are conducted before advancing loans, including identity checks and financial background checks on borrowers and guarantors[57]. - The Group employs a "two eyes" process for credit approval, requiring higher-level approvals based on transaction size and nature[58]. - The Group actively monitors loan repayment statuses and enhances collection procedures, including direct communication with customers[59]. Corporate Governance - The Company has complied with the GEM Listing Rules regarding the composition of the Board, which includes at least three independent non-executive Directors, representing at least one-third of the Board[115]. - All independent non-executive Directors have confirmed their independence in accordance with Rule 5.09 of the GEM Listing Rules[116]. - The Board is responsible for the Group's long-term strategy and significant transactions, ensuring effective performance of management duties[113]. - The Company is committed to maintaining statutory and regulatory standards of corporate governance, applying principles from the Corporate Governance Code[105]. - The Board has delegated day-to-day management to executive Directors and management staff, who regularly review financial results and performance[118]. - The Company has mechanisms in place to ensure Board independence, including annual assessments of independent non-executive Directors[144]. - The Company ensures that adequate information is provided to Directors in a timely manner before meetings to facilitate informed decision-making[138]. Committees and Meetings - The audit committee held two meetings during the year ended December 31, 2024[150]. - The audit committee is composed of three independent non-executive Directors: Mr. Wong Shui Yeung, Dr. Fung Kam Man, and Mr. Wong Kin Ning[149]. - The nomination committee, comprising three independent non-executive Directors, held two meetings during the year ended December 31, 2024[160]. - The remuneration committee held two meetings during the year ended December 31, 2024, with all members attending both meetings[178]. - The credit committee held one meeting during the year ended December 31, 2024, with all members present[186]. - The compliance committee held two meetings during the year ended December 31, 2024, with full attendance from all members[191]. - The credit review committee held one meeting during the year ended December 31, 2024, with full attendance from all members[200]. Trading Status and Regulatory Compliance - The Company has been suspended from trading since November 24, 2017, and will remain suspended until further notice[97]. - As of January 28, 2025, the Company is actively communicating with the SFC to address concerns and expedite the resumption of trading, but no concrete timeframe for resumption can be provided at this stage[100]. - The Company has issued multiple announcements regarding its trading status and compliance with GEM Listing Rules from August 2018 to January 2025[98]. - The compliance committee reviews and monitors the training and professional development of Directors and senior management[186]. - The compliance committee identified no material compliance issues during the review year and made several recommendations to the Board regarding internal control and corporate governance[195].
FIRST CREDIT(08215) - 2024 - 年度财报