On December 19, 2019, the Company issued 2% convertible bond with a principal amount of US$15,000,000. The bond is convertible at the option of the bondholders into class A ordinary shares at any time after six months following the date of issuance of the bond and prior to the close of business on the second business day immediately preceding the maturity date of June 30, 2023. The conversion rate is 99.44 American Depositary Shares (“ADSs”) per US$1,000 principal. The conversion rate is subject to adjustment

on the occurrence of certain events that have an impact on the number of outstanding shares of the company. The bondholders can convert all or any portion of the bond that equals to or greater than US$10,000,000

. However, the bondholders can only exercise such right to convert no more than twice. Any convertible notes not converted, as well as the accrued interest, will be repaid on

June

30, 2023

. In January 2022, the conversion price of the

bon

d was

adjusted to US$

8.08

per share and the convertible bond

ere

converted into

1,856,436

class A

ordinary

shares. The directors of the Company considered that the

effect of the

modification of this financial liability is considered as immaterial.

On initial recognition, the derivative component of the convertible bond is measured at fair value and presented as a derivative financial liabilit

The movement of convertible bond during the years ended December 31, 2021 and 2022 are as follow


	Liability component			Derivative financial liability
	HK$			HK$
At January 1, 2021		103,278,429			12,954,313
Interest for the year		8,085,419			—
Exchange alignment		606,536			798,360

At December 31, 2021		111,970,384			13,752,673

Interest for the year		430,702			—
Fair value gain recognized in profit or loss		—			(13,347,266	)
Converted into class A shares		(112,401,086	)		(405,407	)

At December 31, 2022		—			—