Financial Performance - Revenue for the three months ended March 31, 2022, was HK$14,455,165, representing an increase of 11.4% compared to HK$12,981,842 for the same period in 2021[9] - Loss before tax for the period was HK$1,939,022, significantly reduced from a loss of HK$54,426,801 in the previous year, indicating improved financial performance[9] - The loss attributable to owners of the Company for the period was HK$1,327,808, a substantial improvement from HK$56,302,524 in the prior year[9] - Basic and diluted loss per share for the period was HK$0.04, compared to HK$1.55 in the same period last year, reflecting a significant reduction in losses per share[9] - The total comprehensive expense for the period ended March 31, 2022 was HK$1,327,809, compared to HK$56,302,524 for the same period in 2021, indicating a substantial decrease in overall losses[42] - The consolidated loss attributable to owners of the Company was approximately HK$1.33 million for the Review Period, significantly reduced from approximately HK$56.30 million for the same period in 2021[70] Asset Quality and Impairment - Impairment loss on loans receivables, net, was HK$7,642,499, a significant decrease from HK$52,865,407 in the same period last year, indicating improved asset quality[9] - The impairment loss on loans receivables for the three months ended March 31, 2022 was HK$7,642,499, significantly lower than HK$52,865,407 for the same period in 2021, reflecting improved asset quality[30] - The Group performs collective assessments on impairment allowances for loans receivables at least quarterly, categorizing loans by type to calculate expected credit losses (ECL)[65] - Individual assessments for impairment allowances are conducted monthly, considering factors such as expected recovery dates and the fair value of collateral[66] - The Group's effective risk management measures contributed to the significant decrease in impairment loss on loans receivables during the Review Period[65] - The assessment of impairment allowances incorporates forward-looking information, including economic conditions and expected unemployment rates[64] - The Group's approach to impairment assessment includes using a Markov Chain Model to estimate probabilities of default and loss given default[65] Expenses and Cost Management - Administrative expenses decreased to HK$3,222,863 from HK$4,399,177, showing a reduction of approximately 26.7%[9] - Other operating expenses decreased to approximately HK$4.22 million from approximately HK$6.13 million for the three months ended March 31, 2021, mainly due to a reduction in service fees of debt recovery agencies[70] - Total finance costs for the three months ended March 31, 2022 amounted to HK$208,397, a decrease from HK$229,413 in the same period of 2021[27] - Interest on bond payable decreased to HK$177,534 for the three months ended March 31, 2022, down from HK$197,260 in the same period of 2021[27] - The Group's finance costs remained stable at approximately HK$0.21 million for the Review Period, compared to approximately HK$0.23 million for the three months ended March 31, 2021[70] Revenue Sources - Interest income from credit-impaired loans receivables amounted to HK$9,505,808 for the three months ended March 31, 2022, compared to HK$8,958,831 in 2021, reflecting a year-over-year increase of 6.1%[20] - For the three months ended 31 March 2022, the Group's revenue increased to approximately HK$14.46 million, up from approximately HK$12.98 million for the same period in 2021, primarily due to an increase in overdue interest from loans receivables[51] - Revenue from past due loans less than 3 months was approximately HK$0.65 million, while revenue from loans overdue for more than 3 months but not impaired was approximately HK$1.45 million during the Review Period[51] Compliance and Governance - The financial results were prepared in accordance with applicable Hong Kong Financial Reporting Standards and GEM Listing Rules, ensuring compliance and accuracy[14] - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2022, with no significant impact on the financial statements[15] - The audit committee comprises four independent non-executive Directors, and the financial information has been reviewed for compliance with applicable accounting standards[94] Strategic Focus and Future Outlook - The Company continues to focus on improving operational efficiency and reducing costs to enhance profitability in future periods[9] - The Group will continue to adopt prudent approaches in loan assessment and approval processes to maintain its loan portfolio amidst challenging market conditions[51] - The Group expects that the ongoing COVID-19 pandemic may continue to adversely impact loan demand and market risks in the short term[47] - The Group will closely monitor its capital base to ensure sufficient funding for capturing potential opportunities in the competitive money lending industry[51] - The Group's risk management measures will be continuously evaluated to ensure a proper balance between return and risk in the long run[47] Shareholder and Director Information - As of March 31, 2022, no Directors or chief executives had any interests or short positions in the shares of the Company[78] - As of March 31, 2022, the Company did not have a share option scheme[87] - During the review period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[87] - The Company has been under a trading suspension since November 24, 2017, as directed by the Securities and Futures Commission[89] - The Company's application for trade resumption is still pending, with no concrete timeframe provided at this stage[90] - The Company confirmed that there were no competing interests among the Directors and their close associates during the review period[87] - The Company did not have any controlling shareholder during the review period, eliminating issues of competing interests from controlling shareholders[87]
FIRST CREDIT(08215) - 2022 Q1 - 季度财报