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CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2020
HKD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
HKD ($)
Dec. 31, 2018
HKD ($)
Cash flows from operating activities        
Net income $ 1,325,523 $ 170,960 $ 165,664 $ 138,512
Adjustments for:        
Depreciation and amortization 27,231 3,512 16,547 8,327
Expected credit loss expenses 9,075 1,170    
Share of loss from equity method investments 307 40 543  
Impairment from equity method investments 5,888 759    
Foreign exchange (gains)/losses 11,493 1,482 7,539 (7,457)
Share-based compensation 32,573 4,201 15,967 10,440
Realized gain from available-for-sale financial securities (665) (86) (707) (83)
Deferred income tax expenses/(benefit) (13,146) (1,696) (1,576) 15,507
Amortization of right-of-use assets 52,548 6,777 49,553  
Changes in operating assets:        
Net decrease in amounts due from related parties       6,541
Net increase in loans and advances (14,645,752) (1,888,946) (1,101,785) (178,937)
Net increase in accounts receivable from clients and brokers (5,042,241) (650,326) (927,260) (221,067)
Net increase in accounts receivable from clearing organization (939,848) (121,218) (128,125) (120,063)
Net increase in accounts receivable from fund management companies and fund distributors (297,622) (38,386)    
Net (increase)/decrease in interest receivable (2,984) (385) 32,535 (42,386)
Net (increase)/decrease in prepaid assets 1,048 135 (3,660) (5,164)
Net (increase)/decrease in other assets (156,222) (20,173) 20,860 (89,543)
Changes in operating liabilities:        
Net (decrease)/increase in amounts due to related parties 83,429 10,760 25,037 (6,096)
Net increase in accounts payable to clients and brokers 33,673,301 4,343,037 3,697,534 4,955,073
Net (decrease)/increase in accounts payable to clearing organization 324,266 41,822   (82,878)
Net increase in accounts payable to fund management companies and fund distributors 101,061 13,034 26,381  
Net increase in payroll and welfare payable 217,200 28,014 33,990 17,121
Net increase/(decrease) in interest payable 4,974 642 (1,886) 339
Net decrease in operating lease liabilities (38,077) (4,911) (38,704)  
Net increase in securities sold under agreements to repurchase 5,451,447 703,104 1,590  
Net increase in other liabilities 271,910 35,070 79,397 71,981
Net cash generated from operating activities 20,456,717 2,638,392 1,969,434 4,470,167
Cash flows from investing activities        
Proceeds from disposal of property and equipment and intangible assets     9 4
Purchase of property and equipment and intangible assets (44,649) (5,759) (118,341) (18,791)
Purchase of available-for-sale financial securities (206,793) (26,671) (285,784) (123,260)
Proceeds from disposal of available-for-sale financial securities 306,602 39,544 250,061 63,912
Realized gain received from available-for-sale financial securities 665 86 707 83
Acquisition of equity method investments 0 0 (6,709) 0
Placement of term deposits with initial terms of over three months (300,000) (38,693)    
Net cash used in investing activities (244,175) (31,493) (160,057) (78,052)
Cash flows from financing activities        
Proceeds from borrowings 24,108,205 3,109,372 6,764,524 6,078,979
Repayment of borrowings (20,092,973) (2,591,505) (6,873,188) (6,043,289)
Proceeds from public offering, net of issuance costs 2,339,718 301,767 1,259,317  
Proceeds from exercise of employee share options 16,842 2,172 969  
Proceeds from issuance of Pre-Funded warrants 2,035,104 262,506    
Net cash generated from financing activities 8,406,896 1,084,312 1,151,622 35,690
Effect of exchange rate changes on cash, cash equivalents and restricted cash (1,117) (144) (44,666) 7,457
Net increase in cash, cash equivalents and restricted cash 28,618,321 3,691,067 2,916,333 4,435,262
Cash, cash equivalents and restricted cash at beginning of the year 14,903,437 1,922,181 11,987,104 7,551,842
Cash, cash equivalents and restricted cash at end of the year 43,521,758 5,613,248 14,903,437 11,987,104
Cash, cash equivalents and restricted cash        
Cash and cash equivalents 1,034,668   362,574 215,617
Cash held on behalf of clients 42,487,090   14,540,863 11,771,487
Non-cash financing activities        
Accretion to preferred shares redemption value     12,309 66,998
Supplemental disclosure        
Interest paid (181,706) (23,436) (89,238) (95,285)
Income tax paid (16,250) (2,096) (15,117) $ (18,734)
Cash paid for amounts include in operating lease liabilities $ (58,686) $ (7,569) $ (50,629)