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CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2019
USD ($)
Dec. 31, 2019
HKD ($)
Dec. 31, 2018
HKD ($)
Dec. 31, 2017
HKD ($)
Cash flows from operating activities        
Net (loss)/income $ 21,267 $ 165,664 $ 138,512 $ (8,102)
Adjustments for:        
Depreciation and amortization 2,124 16,547 8,327 4,300
Net loss from equity method investments 70 543    
Foreign exchange losses/(gains) 968 7,539 (7,457) (21,625)
Share-based compensation 2,050 15,967 10,440 9,769
Realized gain from available-for-sale financial securities (91) (707) (83) (12)
Deferred income tax expenses/(benefit) (202) (1,576) 15,507 5,194
Amortization of right-of-use assets 8,313 49,553    
Changes in operating assets:        
Net (increase)/decrease in amounts due from related parties     6,541 (5,535)
Net increase in loans and advances (141,447) (1,101,785) (178,937) (2,781,804)
Net (increase)/decrease in accounts receivable from clients and brokers (119,041) (927,260) (221,067) 477,360
Net increase in accounts receivable from clearing organization (16,449) (128,125) (120,063) (46,278)
Net (increase)/decrease in interest receivable 4,177 32,535 (42,386) (5,971)
Net (increase)/decrease in prepaid assets (470) (3,660) (5,164) 1,286
Net (increase)/decrease in other assets 2,678 20,860 (89,543) (19,159)
Changes in operating liabilities:        
Net increase/(decrease) in amounts due to related parties 3,214 25,037 (6,096) 8,208
Net increase in accounts payable to clients and brokers 474,688 3,697,534 4,955,073 4,131,287
Net increase/(decrease) in accounts payable to clearing organization     (82,878) 72,437
Net increase in payroll and welfare payable 4,364 33,990 17,121 22,838
Net increase/(decrease) in interest payable (242) (1,886) 339 (415)
Net increase in operating lease liabilities (6,921) (38,704)    
Net increase in securities sold under agreements to repurchase 204 1,590    
Net increase in other liabilities 13,580 105,778 71,981 11,550
Net cash generated from operating activities 252,834 1,969,434 4,470,167 1,855,328
Cash flows from investing activities        
Proceeds from disposal of property and equipment and intangible assets 1 9 4 20
Purchase of property and equipment and intangible assets (15,193) (118,341) (18,791) (7,413)
Purchase of available-for-sale financial securities (36,689) (285,784) (123,260)  
Proceeds from disposal of available-for-sale financial securities 32,103 250,061 63,912 2,236
Realized gain received from available-for-sale financial securities 91 707 83 12
Acquisition of equity method investments (861) (6,709)    
Net cash used in investing activities (20,548) (160,057) (78,052) (5,145)
Cash flows from financing activities        
Proceeds from issuance of Series C preferred shares and Series C-1 preferred shares       620,625
Proceeds from borrowings 868,427 6,764,524 6,078,979 2,518,185
Repayment of borrowings (882,377) (6,873,188) (6,043,289) (982,964)
Proceeds from initial public offering, net of issuance costs 161,671 1,259,317    
Proceeds from exercise of share options 124 969    
Net cash generated from financing activities 147,845 1,151,622 35,690 2,155,846
Effect of exchange rate changes on cash, cash equivalents and restricted cash (5,734) (44,666) 7,457 21,625
Net increase in cash, cash equivalents and restricted cash 374,397 2,916,333 4,435,262 4,027,654
Cash, cash equivalents and restricted cash at beginning of the year 1,538,900 11,987,104 7,551,842 3,524,188
Cash, cash equivalents and restricted cash at end of the year 1,913,297 14,903,437 11,987,104 7,551,842
Cash, cash equivalents and restricted cash        
Cash and cash equivalents 46,547   215,617 375,263
Cash held on behalf of clients 1,866,750   11,771,487 7,176,579
Non-cash financing activities        
Accretion to preferred shares redemption value 1,580 12,309 66,998 47,715
Issuance of Series C preferred shares from conversion of the convertible notes       32,345
Issuance of Series C preferred shares from repayment of short-term borrowings       153,896
Supplemental disclosure        
Interest paid (11,456) (89,238) (95,285) (20,294)
Income tax paid (1,941) (15,117) $ (18,734) $ (8,693)
Cash paid for amounts include in operating lease liabilities $ (6,500) $ (50,629)