Financial Performance - The Group's revenue for the year ended December 31, 2023, was approximately HK$6.35 million, representing a decrease of approximately 87.46% from HK$50.69 million for the year ended December 31, 2022[29]. - Revenue from personal loans dropped from HK$43.18 million in 2022 to HK$1.58 million in 2023, while corporate loans decreased from HK$3.56 million to HK$1.55 million[31]. - The Group recorded a net interest margin of approximately 12.00% for the year ended 31 December 2023, compared to 12.06% for the previous year[35][36][37]. - The net interest margin for unsecured loans increased from approximately 12.42% in 2022 to approximately 13.78% in 2023, while the margin for secured loans decreased from approximately 10.22% to 8.73%[38][39]. - The Group recorded other losses of approximately HK$4.53 million in 2023, a decrease from approximately HK$29.54 million in 2022, mainly due to reduced fair value losses on financial assets[45]. - The company reported a loss before tax of HK$152,934,687 for the year ended December 31, 2023, an improvement from a loss of HK$182,684,775 in 2022, indicating a reduction in losses by approximately 16.3%[112]. - Cash used in operating activities amounted to HK$24,834,979, significantly higher than HK$3,937,119 used in the previous year, reflecting increased operational challenges[112]. - Impairment loss on loans receivables reached HK$137,068,822, a substantial increase from HK$43,143,818 in 2022, highlighting deteriorating credit conditions[112]. Risk Management - The company operates in a market designed for small and mid-sized companies, which may carry higher investment risks[4]. - There is a risk that securities traded on GEM may be more susceptible to high market volatility compared to those on the Main Board[5]. - The Group will continue to adopt prudent risk management measures to balance return and risk in the long run[22]. - The decrease in revenue was mainly due to a reduction in accrued interest from credit-impaired loans receivables[29]. - The Group will modify its credit assessments and control measures as necessary to manage credit risk effectively[29]. - The Group performs collective assessment on impairment allowance for loans receivables at least quarterly, calculating expected credit losses (ECL) based on loan types and historical repayment performance[57]. - Individual assessment of impairment allowance is conducted monthly, considering factors such as expected recovery date and fair value of collateral[58]. - The Group assesses credit risk based on both quantitative and qualitative information, including historical experience and forward-looking data available without undue cost[149]. Compliance and Governance - The board of directors confirmed that the information in the annual report is accurate and complete in all material respects[7]. - The company emphasizes the importance of accurate and complete information in its annual report to avoid misleading statements[7]. - The Group has not received any service-related complaints during 2023, indicating a strong customer satisfaction level[60]. - There were no material breaches of relevant laws and regulations found during the year, demonstrating compliance with the Money Lenders Ordinance[60]. - The Group values customer privacy and complies with the Personal Data (Privacy) Ordinance, ensuring proper handling of personal data[60]. - An anti-fraud policy has been established to detect and prevent fraud, with a whistle-blowing policy allowing anonymous reporting of misconduct[61]. - The Group maintains high ethical standards and does not tolerate corruption, encouraging staff to report any unethical behavior[62]. - The Nomination Committee was established in 2011 and consists of four independent non-executive directors, ensuring compliance with corporate governance codes[188]. Financial Reporting and Audit - The Group's consolidated financial statements were prepared in compliance with Hong Kong Financial Reporting Standards (HKFRSs) and the Hong Kong Companies Ordinance[66]. - The audit concluded that the consolidated financial statements provide a true and fair view of the Group's financial position as of December 31, 2023[66]. - The overall presentation and structure of the consolidated financial statements were evaluated to ensure fair representation of underlying transactions[2]. - The Group's expected credit loss is calculated as the difference between all contractual cash flows due and the expected cash flows[178]. - The Group's current tax liability is calculated based on taxable profit for the year, which differs from loss before taxation due to various taxable and deductible items[196]. - The Group's liability for current tax is determined using tax rates that have been enacted or substantively enacted by the end of the reporting period[197]. Operational Changes - The average loan balance decreased from approximately HK$611.73 million as of December 31, 2022, to approximately HK$595.00 million as of December 31, 2023, reflecting a decline due to economic challenges[22]. - Administrative expenses decreased to approximately HK$10.12 million in 2023 from approximately HK$13.86 million in 2022, attributed to lower employment expenses and depreciation charges[47][48]. - Employment expenses decreased from approximately HK$9.35 million in 2022 to approximately HK$7.04 million in 2023[49]. - The Group's financial performance indicates a strategic focus on managing credit risk and optimizing operational costs[50]. - The Group plans to closely monitor its capital base to ensure adequate funding for potential opportunities[29]. Changes in Accounting Policies - The amendments to HKFRSs clarify the classification of liabilities as current or non-current, based on rights existing at the end of the reporting period[4]. - The application of the amendments will not result in reclassification of the Group's liabilities as of December 31, 2023[5]. - Right-of-use assets are depreciated from the commencement date to the end of their useful life if ownership is reasonably certain to be obtained[6]. - Lease liabilities are adjusted by interest accretion and lease payments after the commencement date[7]. - The Group's accounting policy change regarding long service payment scheme does not significantly impact the cumulative loss or equity components as of December 31, 2022[168].
FIRST CREDIT(08215) - 2023 - 年度业绩