Financial Performance - The Group's revenue for the year ended December 31, 2022, was approximately HK$50.69 million, representing a decrease of approximately 15.85% from HK$60.24 million in 2021[32]. - Revenue from personal loans decreased from HK$49.12 million in 2021 to HK$43.18 million in 2022[38]. - The Group recorded a consolidated loss attributable to owners of approximately HK$182.48 million for the year ended December 31, 2022, compared to a loss of approximately HK$31.54 million for the year ended 31 December 2021[88]. - The Group's other income increased from approximately HK$0.43 million in 2021 to approximately HK$0.72 million in 2022, mainly due to government subsidies[48]. - The Group recorded an other loss of approximately HK$29.54 million in 2022, compared to an other gain of approximately HK$0.33 million in 2021, primarily due to fair value losses on financial assets[49]. Loan Portfolio and Risk Management - The average loan balance decreased from approximately HK$834.50 million as of December 31, 2021, to approximately HK$611.73 million as of December 31, 2022[22]. - The Group will continue to adopt prudent and cautious approaches during the loan assessment and approval process to maintain its loan portfolio[24]. - The Group is focused on evaluating its risk management measures to ensure a proper balance between return and risk in the long run[24]. - Credit risk assessments are conducted before each loan is advanced, including identity checks and financial background checks on borrowers[69]. - The Group actively monitors loan repayment status and has enhanced collection procedures during the year, especially during the COVID-19 pandemic[71]. Operational Challenges - The Group's money lending business was significantly impacted by the Omicron variant outbreak, affecting customer repayment and visits due to stringent social distancing measures[23]. - The adverse financial conditions caused by the COVID-19 pandemic have negatively impacted the financial position and repayment ability of the Group's customers[24]. - The challenging operational environment is expected to affect loan demand and market risks in the short term[24]. - The Group aims to maintain its services to customers despite the operational challenges posed by the pandemic[23]. Liquidity and Capital Management - The Group's bank and cash balances were approximately HK$19.84 million as of December 31, 2022, indicating sufficient funds to maintain operations[25]. - The Group's liquidity positions and working capital sufficiency were assessed to evaluate the influence of the COVID-19 pandemic on its business[25]. - The Group will continue to monitor its capital base to ensure sufficient funding for potential opportunities[30]. - The Group's liquidity position as of December 31, 2022, included bank and cash balances of approximately HK$19.84 million, deemed sufficient for operations[27]. - The net current assets of the Group amounted to approximately HK$236.62 million as of 31 December 2022, an increase from approximately HK$149.32 million in 2021, with a current ratio of approximately 125.19 times[94]. Administrative and Employment Expenses - The Group's administrative expenses decreased to approximately HK$13.86 million for the year ended 31 December 2022, down from approximately HK$13.92 million in 2021, primarily due to reduced depreciation charges[56]. - Employment expenses increased to HK$9.35 million in 2022 from HK$9.10 million in 2021, while occupancy costs decreased to HK$0.20 million from HK$0.26 million[57]. - Other operating expenses decreased to approximately HK$10.10 million in 2022 from approximately HK$15.04 million in 2021, primarily due to reduced service fees of debt recovery agencies and lower advertising and promotion expenses[78]. Corporate Governance - The company has complied with most provisions of the Corporate Governance Code, with some deviations noted in specific areas[129][130]. - The Board is responsible for the Group's long-term strategy and significant transactions, ensuring effective performance of duties[136]. - The company has adopted a code of conduct for Directors' securities transactions, with no violations reported during the year[134]. - The roles of Chairman and CEO are separate, but the Chairman position has remained vacant since March 2020[150]. - The company received annual confirmations of independence from all independent non-executive Directors[139]. Board and Committee Activities - The Board of Directors held a total of four meetings during the year, with all directors attending all meetings, indicating strong engagement and governance[167]. - The audit committee, consisting of four independent non-executive directors, held four meetings during the year ended December 31, 2022, ensuring compliance and oversight[177]. - The nomination committee, comprising four independent non-executive Directors, held 2 meetings during the year, with full attendance from all members[186]. - The remuneration committee held 5 meetings during the year, with all members present at each meeting[199]. - The audit committee reviewed the Group's quarterly, interim, and annual financial results, ensuring the integrity of financial statements and compliance with financial reporting standards[179]. Staff and Training - The Group has adopted a staff training and development policy to enhance competitiveness in the financial market, focusing on money lending, anti-money laundering, and anti-corruption[106][110]. - As of December 31, 2022, the Group employed a total of 31 staff, an increase from 28 staff in 2021, with total employee remuneration approximately HK$9.10 million, up from HK$8.79 million in 2021[105][110]. - All directors participated in continuous professional development during the year, enhancing their knowledge and skills relevant to their roles[170]. Future Plans and Investments - The Group has no specific future plans for material investments or capital assets as of 31 December 2022[100]. - The Group did not hold any significant investments exceeding 5% of the total asset value as of 31 December 2022[104]. - The Group's treasury policy aims to utilize surplus funds for long-term capital appreciation through diversified investment products[95].
FIRST CREDIT(08215) - 2022 - 年度财报