CONTENTS

  1. Corporate Information
  2. Financial Highlights
  3. Management Discussion and Analysis

18 Condensed Consolidated Statement of

  Profit or Loss and Other Comprehensive Income

20 Condensed Consolidated Statement of Financial Position

  1. Condensed Consolidated Statement of Changes in Equity
  2. Condensed Consolidated Statement of Cash Flows
  3. Notes to the Interim Condensed Consolidated   Financial Statements

53 Other Information

CORPORATE INFORMATION

BOARD OF DIRECTORS

Executive Directors

Mr. Chu, Nicholas Yuk-yui(Chairman) Mrs. Chu Yuet Wah (Chief Executive Officer) Mr. Chu, Kingston Chun Ho

Mr. Ho Chi Ho

Independent Non-executive Directors

Mr. Lau Man Tak

Ms. Lo, Miu Sheung Betty

Mr. Chiu Sin Nang, Kenny

COMPANY SECRETARY

Mr. Lui Chun Pong

AUDIT COMMITTEE

Mr. Lau Man Tak (Chairman)

Ms. Lo, Miu Sheung Betty

Mr. Chiu Sin Nang, Kenny

REMUNERATION COMMITTEE

Ms. Lo, Miu Sheung Betty (Chairman)

Mr. Lau Man Tak

Mr. Chiu Sin Nang, Kenny

NOMINATION COMMITTEE

Mr. Chiu Sin Nang, Kenny (Chairman)

Mr. Lau Man Tak

Ms. Lo, Miu Sheung Betty

AUDITORS

BDO Limited

25th Floor Wing On Centre

111 Connaught Road Central

Hong Kong

PRINCIPAL BANKERS

The Hongkong and Shanghai Banking

  Corporation Limited

The Bank of East Asia, Limited

Chong Hing Bank Limited

Hang Seng Bank Limited

Industrial and Commercial Bank of China

  (Macau) Limited

BERMUDA LEGAL ADVISERS

Conyers Dill & Pearman

Room 2901, One Exchange Square

8 Connaught Place, Central

Hong Kong

REGISTERED OFFICE

Clarendon House

2 Church Street

Hamilton HM11

Bermuda

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

72/F, The Center

99 Queen's Road Central

Central, Hong Kong

PRINCIPAL SHARE REGISTRARS AND TRANSFER OFFICE

MUFG Fund Services (Bermuda) Limited 4th floor North Cedar House

41 Cedar Avenue

Hamilton HM12 Bermuda

BRANCH SHARE REGISTRARS AND TRANSFER OFFICE IN HONG KONG

Tricor Abacus Limited

17/F, Far East Finance Centre

16 Harcourt Road

Hong Kong

STOCK CODE

1031

WEBSITE

http://www.kingston.com.hk 

2

Kingston Financial Group Limited

Interim Report 2022

FINANCIAL HIGHLIGHTS

  • Turnover for the six months ended 30 September 2022 (the "Period") increased by approximately 3% to approximately HK$940,235,000 when compared to approximately HK$913,132,000 in the corresponding period of last year (the
    "Previous Period").
  • Profit for the Period decreased by approximately 26.4% to approximately
    HK$1,823,000 when compared to approximately HK$2,478,000 in the Previous Period. The decrease was primarily attributable to the impairment losses on advances to customers in margin financing of approximately HK$662,691,000 in the Period (Previous Period: approximately HK$568,226,000).
  • Earnings per share for the Period decreased by approximately 26.4% to approximately HK0.0105 cents when compared to approximately HK0.0143 cents in the Previous Period.

Kingston Financial Group Limited

3

Interim Report 2022

MANAGEMENT DISCUSSION AND ANALYSIS

On behalf of the board of directors (the "Board") of Kingston Financial Group Limited (the "Company"), I am pleased to announce the interim results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 September 2022 (the "Period").

OVERVIEW

The Group is principally engaged in the provision of a wide range of financial services including securities brokerage, underwriting and placements, margin and initial public offering ("IPO") financing, corporate finance advisory services and futures brokerage services. The Group also provides gaming and hospitality services in Macau.

Total unaudited revenue recorded by the Group for the Period amounted to approximately HK$940,235,000, representing an increase of approximately 3% as compared to approximately HK$913,132,000 for the six months ended 30 September 2021 (the "Previous Period").

The unaudited profit for the Period amounted to approximately HK$1,823,000, representing a decrease of approximately 26.4% as compared to approximately HK$2,478,000 for the Previous Period. The decrease was primarily attributable to impairment losses on advances to customers in margin financing of approximately HK$662,691,000 in the Period (Previous Period: HK$568,226,000). Basic earnings per share for the Period decreased by approximately 26.4% to approximately HK0.0105 cents as compared to approximately HK0.0143 cents in the Previous Period.

BUSINESS AND FINANCIAL REVIEW

The 2019 Novel Coronavirus ("COVID-19") pandemic has spread over the world and has dragged down global economic growth and supply chains of various countries. In September 2022, the US Federal Reserve announced its third interest rate hike of 0.75% and the federal funds rate rose to a range of 3% to 3.25%, hitting a 14-year high.

In face of high inflation and uncertainties such as significant interest rate hikes by the US Federal Reserve, the appreciation of the US dollar and the high US dollar index attracted capital flow to the US dollar, which led to a weak Hong Kong dollar. The Hong Kong Monetary Authority entered the market to buy Hong Kong dollar and sell US dollars. The aggregate balance of the Hong Kong banking system fell to the level of nearly HK$100 billion. In addition, the ongoing tension between the PRC and the US and the Russia- Ukraine war have led to greater volatility in the stock and bond markets in Hong Kong. The Hong Kong stock market entered 2022 on a high note followed by a low in the face of multiple uncertainties that Hang Seng Index hit a low at 17,016 points on 30 September 2022, marking a 11-year low.

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Kingston Financial Group Limited

Interim Report 2022

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Disclaimer

Kingston Financial Group Ltd. published this content on 28 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2022 10:40:03 UTC.