Huicai Financial Investment (08018) announced its results for the first three quarters of 2023, achieving a profit of HK$40.482 million,...
According to the Zhitong Finance App, Huicai Financial Investment (08018) announced its results for the first three quarters of 2023, achieving revenue of HK$40.482 million, a year-on-year decrease of 6.09%; loss attributable to company owners of HK$16.564 million, a year-on-year decrease of 2.99%; loss per share of HK$13.14 cents.
According to the announcement, the decline in earnings was due to fluctuations in the Hong Kong stock market. A number of customers terminated software licensing service contracts signed with the Asian Open during the period, which reduced revenue from the Group's financial software solutions business; and revenue from the loan business during the period decreased. In view of the unstable situation in Hong Kong's financial markets and economic environment during the period, the Group has adopted a more prudent approach in approving new loans, which has led to a decrease in the number of new borrowers and a reduction in interest income generated by the Group from loan financing.
The decrease in net loss was mainly due to the net impact of the Group's gross profit reduction during the period; the increase in loans receivable and interest impairment loss provisions during the period to approximately HK$1,451,000; the net fair value loss of financial assets included in fair value during the period decreased to approximately HK$339,000; and the increase in administrative expenses incurred by the Group during the period to approximately HK$38.112 million.