Financial Performance - Revenue for the three months ended March 31, 2023, was HK$8,569,876, a decrease of 40% compared to HK$14,455,165 for the same period in 2022[15] - Loss from operations for Q1 2023 was HK$9,921,921, significantly higher than the loss of HK$1,730,625 in Q1 2022[15] - Loss before tax for the period was HK$9,971,159, compared to a loss of HK$1,939,022 in the prior year[15] - Total comprehensive expense attributable to owners of the Company for Q1 2023 was HK$9,911,431, compared to HK$1,327,808 in Q1 2022[15] - Basic and diluted loss per share for Q1 2023 was HK$0.27, compared to HK$0.04 in the same period last year[15] - The consolidated loss attributable to owners of the Company was approximately HK$9.91 million for the Review Period, compared to a loss of approximately HK$1.33 million for the three months ended 31 March 2022, driven by decreased revenue and increased impairment loss[72] Impairment and Losses - Impairment loss on loans receivables, net, was HK$12,310,381, up from HK$7,642,499 in the previous year[15] - The impairment loss on loans receivables increased significantly to HK$12,310,381, up from HK$7,642,499, reflecting a rise of 61.8%[34] - The increase in impairment loss on loans receivables was principally due to an increase in loans receivables that have past due during the Review Period[64] - The Group performs collective assessments on impairment allowances for loans receivables at least quarterly, categorizing loans by type to calculate expected credit loss (ECL)[65] - The Group also conducts monthly individual assessments for impairment allowances on loans receivables, considering factors such as expected recovery dates and the fair value of collateral[66] Revenue and Interest Income - Interest income from credit-impaired loans receivables was HK$6,419,057 for Q1 2023, down from HK$9,505,808 in Q1 2022[22] - The decrease in revenue was mainly due to a reduction in accrued interest from credit-impaired loans receivables during the Review Period[57] - The revenue from past due loans less than 3 months was approximately HK$0.02 million, while revenue from loans overdue for more than 3 months but not impaired was approximately HK$1.11 million[57] - The Group recorded a net interest margin of approximately 12.19% for the Review Period, slightly up from 12.13% for the same period in 2022[57] Expenses and Cost Management - Other operating expenses decreased to approximately HK$1.22 million for the Review Period, down from approximately HK$4.22 million for the three months ended 31 March 2022, mainly due to a reduction in service fees of debt recovery agencies[72] - The Group's administrative expenses were approximately HK$3.21 million for the Review Period, slightly down from approximately HK$3.22 million for the corresponding period in 2022, primarily due to decreased depreciation charges[72] - The Group's total salaries and allowances for employees (excluding directors' emoluments) rose to HK$1,604,471 from HK$1,465,549, an increase of 9.5%[34] - The Group is committed to controlling expenses through various budget control measures[49] Trading Status and Regulatory Matters - The Group's shares remain suspended from trading as of the date of approval of these financial statements[21] - Trading in the shares of the Company has been suspended since November 24, 2017, and will remain suspended until further notice[84] - 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[92] - The Company's trade resumption application is still pending, and no concrete timeframe for resumption can be provided at this stage[92] - The Audit Committee, comprising four independent non-executive Directors, has reviewed the unaudited condensed consolidated results for the Review Period[93] Economic Conditions and Business Outlook - The adverse financial and economic conditions caused by the COVID-19 pandemic have negatively impacted the financial position and repayment ability of the Group's customers[48] - The overall economy is picking up as COVID-19 measures have been relaxed, but uncertainties remain in the business environment[52] - The Group aims to maximize shareholder value and enhance its competitive position by maintaining revenue and credit quality[57] - The Group will continue to adopt prudent and cautious approaches during the loan assessment and approval process to maintain its loan portfolio[48]
FIRST CREDIT(08215) - 2023 Q1 - 季度财报