Financial Performance - Revenue for the three months ended June 30, 2023, was HK$5,242,000, a decrease of 47.5% compared to HK$10,003,000 for the same period in 2022[9]. - The Group reported a loss before income tax of HK$141,000 for the reporting period, compared to a profit of HK$4,124,000 in the corresponding period of 2022[9]. - Total comprehensive loss attributable to owners of the Company for the period was HK$127,000, compared to a profit of HK$2,847,000 in the same period last year[9]. - Basic and diluted loss per share for the period was (0.10) HK cents, compared to earnings of 3.05 HK cents and 2.95 HK cents for the corresponding period in 2022[9]. - The total reportable segment loss for the three months ended June 30, 2023, was HK$141,000, compared to a profit of HK$4,124,000 in the same period of 2022, indicating a significant downturn[30][32]. - The Group reported a loss attributable to owners of the Company of HK$127,000 for the three months ended June 30, 2023, compared to a profit of HK$2,847,000 in the same period of 2022[53]. - The Group recorded a net loss of approximately HK$0.1 million for the three months ended June 30, 2023, compared to a profit of approximately HK$2.8 million in the previous year, mainly due to a decrease in interest income of approximately HK$3.8 million[106]. Revenue Breakdown - For the three months ended June 30, 2023, the total reportable segment revenue was HK$5,242,000, a decrease from HK$10,003,000 in the same period of 2022, representing a decline of approximately 47.5%[30][32]. - The brokerage segment generated revenue of HK$95,000, down from HK$199,000 year-over-year, reflecting a decrease of about 52.3%[30][32]. - The margin financing segment reported a loss of HK$1,882,000, compared to a profit of HK$647,000 in the same period last year, indicating a significant decline in performance[30][32]. - The money lending segment achieved revenue of HK$4,502,000, a decrease from HK$8,325,000, representing a decline of approximately 45.8%[30][32]. - The asset management segment reported a profit of HK$166,000, compared to a profit of HK$5,039,000 in the previous year, showing a decrease of about 96.7%[30][32]. - Approximately 86% of the company's total revenue during the reporting period was derived from its money lending business[57]. Expenses and Cost Management - Employee costs decreased to HK$1,768,000 from HK$3,490,000, reflecting a reduction of 49.3% year-over-year[9]. - Administrative expenses were reduced to HK$1,642,000 from HK$2,309,000, a decrease of 28.8% compared to the previous year[9]. - Total employee costs for the reporting period were approximately HK$1.8 million, a decrease of 49% compared to HK$3.5 million in the same period last year[98]. - Administrative expenses decreased by approximately 29% to HK$1.6 million from HK$2.3 million year-on-year, primarily due to reduced operating lease charges[99]. Operational Activities - There were no significant changes in operations during the reporting period[14]. - The Company continues to focus on its investment holding activities without any new product or technology developments reported[14]. - The Group's operational activities remained stable with no significant changes reported during the period[4]. Future Plans and Strategies - The company plans to expand into Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activities to broaden its income sources and explore new markets[59]. - The management is actively identifying potential acquisition targets licensed to conduct Type 6 regulated activities to leverage existing client bases and expand underwriting and placing business[63]. - The company aims to enhance its asset management capabilities by building a comprehensive professional team and expanding the scale of its asset management operations[64]. - The Group plans to explore IT infrastructure solutions through a joint venture with a well-known information service provider in China, aiming to diversify its service offerings[71]. - The Board has resolved to scale down its money lending business by not approving any new loan applications, focusing instead on extending existing arrangements and recovering non-performing debts[88]. Legal and Compliance Matters - The Board believes that Claim A for conspiracy and/or fraud against the Group is extremely weak and will not have any material impact on the Group's financial position[125]. - The Group is currently seeking legal advice regarding Claim B, which involves a claim of HK$10 million for various damages[126]. - The Company has complied with all code provisions set out in the Corporate Governance Code, except for the deviation from code provision C.2.1 regarding the separation of roles of chairman and chief executive officer[177]. - The Company currently has no chairman or chief executive officer, with daily operations managed by executive Directors and senior management[178]. Shareholder Information - As of June 30, 2023, the total number of shares issued was 124,416,000[149]. - Mr. Shiu Shu Ming holds 10,280,000 shares, representing approximately 8.26% of the total shareholding[149]. - Ms. Lee Nga Ching holds 518,400 underlying shares, representing approximately 0.42% of the total shareholding[149]. - The Company granted share options to eligible participants to subscribe for a total of 21,144,000 shares at an exercise price of HK$0.094 per share, valid from June 23, 2022, to June 22, 2032[167]. Risk Management - The Group acknowledges certain risks in its operations, many of which are beyond its control[128]. - The Group aims to improve its credit risk management policies and procedures in response to local market financial volatility[72]. - The Group's credit assessment procedures for money lending include evaluating collateral, the applicant's background, and conducting credit searches with external agencies when necessary[91].
东方汇财证券(08001) - 2024 Q1 - 季度财报