Financial Performance - For the six months ended June 30, 2023, the Group reported interest income from loan facilities of HK$17,159,460, a decrease of 38.4% compared to HK$27,783,595 for the same period in 2022[22]. - The Group's revenue for the Review Period decreased to approximately HK$17.16 million, down from approximately HK$27.78 million for the same period last year, representing a decline of about 38%[32]. - The Group recorded a loss before tax of approximately HK$15.42 million for the three months ended June 30, 2023, compared to a profit before tax of approximately HK$11.69 million for the same period in 2022[39]. - The Group's total comprehensive loss attributable to the owners of the Company for the six months ended June 30, 2023, was approximately HK$25.40 million, compared to a profit of approximately HK$10.39 million for the same period in 2022[39]. - The Group's basic loss per share for the six months ended June 30, 2023, was HK$0.43, compared to earnings per share of HK$0.32 for the same period in 2022[39]. - The Group recorded an unaudited consolidated loss attributable to owners of approximately HK$25.40 million for the Review Period, compared to a profit of approximately HK$10.39 million for the six months ended 30 June 2022[80]. Asset Valuation - As of June 30, 2023, the fair value of equity securities listed in Hong Kong was HK$3,444,518, down from HK$12,131,676 as of December 31, 2022, representing a decline of 71.5%[15]. - The Group's financial assets mandatorily measured at FVTPL included equity securities listed in Hong Kong, which were valued at HK$3,444,518 as of June 30, 2023[15]. - The Group's financial assets mandatorily measured at fair value through profit or loss decreased to HK$3.44 million as of June 30, 2023, from HK$12.13 million as of December 31, 2022[45]. - As of June 30, 2023, total non-current assets amounted to HK$37,629,433, a decrease of 12.4% from HK$42,982,168 as of December 31, 2022[135]. - Current assets totaled HK$217,738,295, down 8.7% from HK$238,526,035 as of December 31, 2022[135]. - The net assets as of June 30, 2023, were HK$254,199,983, a decline of 9.1% from HK$279,602,892 as of December 31, 2022[135]. Impairment and Losses - The Group recorded an impairment loss on loans receivables of approximately HK$31.43 million, compared to a net reversal of impairment loss of approximately HK$17.86 million for the same period in 2022, attributed to an increase in past due loans[78]. - The Group's impairment losses on loans receivables were primarily due to an increase in overdue loans during the Review Period[78]. - The Group recorded an impairment loss on loans receivables of HK$2,968,448 for the six months ended June 30, 2023, compared to HK$3,236,391 in the same period of 2022, indicating a reduction in impairment[188]. Revenue Sources - The Group's interest income from loans offered to customers was the primary source of revenue, reflecting the integrated nature of its resources[47]. - For the six months ended 30 June 2023, all of the Group's revenue was generated from credit financing in Hong Kong, with no revenue from a single external customer amounting to 10% or more of the Group's revenue[47]. - The Group's revenue from other sources, specifically interest income from loan facilities, was HK$8,589,584 for the three months ended June 30, 2023, down from HK$13,328,430 for the same period in 2022[22]. Expenses and Costs - Administrative expenses for the six months ended June 30, 2023, included an impairment loss of approximately HK$2.80 million, compared to a reversal of impairment loss of approximately HK$3.35 million for the same period in 2022[39]. - The Group's other income decreased by approximately HK$0.19 million due to a reduction in government grants received under the Employment Support Scheme during the Review Period[61]. - Administrative expenses decreased to approximately HK$6.01 million from approximately HK$6.58 million in the corresponding period of 2022, mainly due to lower employment expenses and depreciation charges[61]. - Finance costs decreased to approximately HK$0.10 million for the Review Period, down from approximately HK$0.40 million for the six months ended June 30, 2022[80]. Cash Flow and Liquidity - The net cash used in operating activities was HK$20,812,486 for the six months ended 30 June 2023, compared to HK$5,686,314 for the same period in 2022, indicating a significant increase in cash outflow[157]. - The net cash generated from investing activities for the same period was HK$7,072,379, up from HK$3,022,565 in 2022, reflecting improved investment performance[157]. - The cash and cash equivalents at the end of the period stood at HK$5,261,618, down from HK$14,571,193 at the end of June 2022, indicating a decline in available cash[157]. - The Group's net cash was approximately HK$4.09 million as of June 30, 2023, down from approximately HK$17.93 million as of December 31, 2022, indicating no gearing as of the reporting date[70]. Risk Management and Future Outlook - The Group expects that the challenging economic environment may affect loan demand and market risks in the short term[121]. - The Group is committed to maintaining prudent risk management measures to balance return and risk in the long run[121]. - The overall economy in Hong Kong and Mainland China is recovering, but uncertainties remain due to the impacts of COVID-19[121]. Corporate Governance - The Group's audit committee comprises four independent non-executive Directors, ensuring compliance with applicable accounting standards[113]. - The Company did not have a share option scheme as of June 30, 2023, indicating a focus on other forms of compensation[108].
FIRST CREDIT(08215) - 2023 - 中期财报