Financial Performance - For the nine months ended September 30, 2023, the Group reported a revenue of HK$25,543,049, a decrease of 38.7% compared to HK$41,662,304 in the same period of 2022[2]. - The loss from operations for the nine months ended September 30, 2023, was HK$121,093,948, compared to a loss of HK$1,426,705 in the same period of 2022[2]. - The loss before tax for the nine months ended September 30, 2023, was HK$121,217,855, compared to a loss of HK$1,932,913 in the same period of 2022[2]. - The basic loss per share for the nine months ended September 30, 2023, was HK$3.34, compared to HK$0.02 in the same period of 2022[2]. - The Group's total comprehensive expense attributable to the owners for the period was HK$121,165,884, compared to HK$692,374 in the same period of 2022[2]. - The total revenue for the nine months ended September 30, 2023, was HK$11.86 million, a decrease from HK$559.68 million in the same period of 2022[29]. - For the nine months ended 30 September 2023, the Group reported a loss attributable to owners of HK$121,165,884, compared to a loss of HK$692,374 for the same period in 2022[103]. - The unaudited consolidated loss attributable to owners of the Company for the Review Period was approximately HK$121.17 million, compared to HK$0.69 million in the same period of 2022[140]. - The increase in loss was primarily due to an increase in impairment loss on loans receivables and a decrease in revenue during the Review Period[140]. Interest Income and Expenses - Interest income on credit-impaired loans receivables decreased to HK$20,022,472 for the nine months ended September 30, 2023, down from HK$29,272,326 in 2022, representing a decline of 31.5%[4][17]. - For the three months ended September 30, 2023, the company reported interest income from loan facilities of HK$8.38 million, a decrease of 39.5% compared to HK$13.88 million in the same period of 2022[26]. - The bank interest income for the three months ended September 30, 2023, was HK$0.19 million, significantly up from HK$0.006 million in the same period of 2022[29]. - The company recorded a net interest margin of approximately 14.0% for the review period, compared to 11.9% for the corresponding period last year[42][55]. - The Group's finance costs for the nine months ended September 30, 2023, were HK$123,907, compared to HK$506,208 in the same period of 2022[2]. - The Group recorded finance costs of approximately HK$0.12 million for the Review Period, a decrease from HK$0.51 million in the corresponding period in 2022[140]. Administrative and Other Expenses - Administrative expenses for the nine months ended September 30, 2023, were HK$8,831,932, a decrease from HK$10,237,725 in the same period of 2022[2]. - The Group's other operating expenses for the nine months ended September 30, 2023, were HK$4,253,536, down from HK$8,203,463 in the same period of 2022[2]. - Other operating expenses decreased to approximately HK$4.25 million for the Review Period, down from approximately HK$8.20 million for the corresponding period in 2022, mainly due to a decrease in service fees of debt recovery agencies[71]. - Administrative expenses decreased to approximately HK$8.83 million for the review period, down from approximately HK$10.24 million in the same period of 2022, primarily due to lower employee costs and depreciation[59]. Impairment Losses - As of September 30, 2023, the Group recorded an impairment loss on loans receivables of approximately HK$130.65 million, compared to a net reversal of impairment loss of approximately HK$20.42 million for the corresponding period in 2022[69]. - The increase in impairment loss on loans receivables is primarily due to an increase in loans receivables that have past due during the Review Period[69]. - The impairment loss on loans receivables for the three months ended September 30, 2023, was HK$1,269,233, a decrease from HK$2,046,308 in the previous year[100]. - The Group assesses expected credit loss (ECL) based on historical credit loss experience, adjusted for specific debtor factors and economic conditions[69]. - The Group performs collective assessment on impairment allowance for loans receivables at least on a quarterly basis, categorizing loans into different groups based on credit risk characteristics[69]. - The Group conducts monthly individual assessments on impairment allowance for loans receivables, considering factors such as expected recovery dates and fair value of collateral[69]. Trading and Regulatory Matters - The trading of shares of the Company remains suspended as of the date of approval of these financial statements[11]. - The Company has been in communication with the Securities and Futures Commission (SFC) to address concerns and aims for a resumption of trading of its shares[87]. - Trading in the Company's shares has been suspended since November 24, 2017, and will remain suspended until further notice[87]. - The Company is currently unable to provide a concrete timeframe for the resumption of trading of its shares[87]. - The audit committee, comprising four independent non-executive Directors, has reviewed the Group's unaudited condensed consolidated results for the Review Period[81]. - The Company has made adequate disclosures in compliance with applicable accounting standards and GEM Listing Rules[81]. Government Grants and Other Income - The company did not record any government grants for the three months ended September 30, 2023, compared to HK$312.8 million in the same period of 2022[29]. - The Group's other income decreased by approximately HK$0.55 million due to a reduction in government grants received under the Employment Support Scheme during the Review Period[136]. Strategic Focus - The Group has faced increased lending risks due to financial difficulties encountered by some customers, impacting their loan repayment ability[130]. - The Group will continue to adopt prudent risk management measures to balance return and risk in the long term[130]. - The overall financial strategy includes a focus on managing credit risk and optimizing operational expenses to enhance profitability[71]. - The Group has implemented various budget control measures to manage its expenses effectively[116].
FIRST CREDIT(08215) - 2023 Q3 - 季度财报