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至源控股(00990) - 2021 - 中期财报
2021-09-23 09:09
Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 18,339,059 thousand, an increase from HKD 7,854,938 thousand in the same period of 2020, representing a growth of approximately 133.5%[17] - The operating profit for the period was HKD 738,130 thousand, compared to HKD 153,491 thousand in the previous year, indicating a significant increase of about 380.5%[17] - Net profit for the period reached HKD 662,118 thousand, up from HKD 128,351 thousand in 2020, reflecting an increase of approximately 416.5%[17] - Basic and diluted earnings per share were HKD 4.85 cents, compared to HKD 0.83 cents in the prior year, marking an increase of about 484.5%[17] - Total comprehensive income for the six months ended June 30, 2021, was HKD 662,657,000, compared to HKD 129,726,000 for the same period in 2020, representing a significant increase[20] - Segment profit for distribution, trading, and processing was HKD 654,839, while financial services contributed HKD 82,823, leading to a total segment profit of HKD 737,662[28] - The group reported a pre-tax profit of HKD 735,822 for the six months ended June 30, 2021, compared to HKD 141,364 in the same period of 2020, marking a significant improvement[28][30] - Profit attributable to equity holders increased from approximately HKD 98,295,000 to approximately HKD 601,935,000, reflecting higher gross profit and other income despite increased administrative and tax expenses[88] Assets and Liabilities - Total assets as of June 30, 2021, amounted to HKD 8,583,649 thousand, compared to HKD 3,983,382 thousand at the end of 2020, representing a growth of approximately 115.5%[18] - The net asset value increased to HKD 3,359,894 thousand from HKD 1,841,429 thousand, indicating a rise of about 82.2%[19] - The group's total liabilities for the financial services segment were HKD 2,389,196, contributing to the overall liabilities of HKD 5,342,594[33] - The total amount of loans and other borrowings outstanding as of June 30, 2021, was approximately HKD 1,257,816,000, whereas there were no borrowings as of December 31, 2020[106] - The current ratio as of June 30, 2021, was approximately 1.58, down from 1.84 as of December 31, 2020, while the debt-to-equity ratio was approximately 0.37, with no borrowings reported previously[106] Cash Flow and Investments - Net cash generated from operating activities for the six months ended June 30, 2021, was HKD 1,590,410,000, compared to HKD 5,767,834,000 in 2020, showing a decrease of approximately 72.4%[21] - The company reported a net cash outflow from investing activities of HKD 158,408,000 for the six months ended June 30, 2021, compared to HKD 548,021,000 in 2020[21] - The company raised HKD 807,365,000 from the issuance of new shares during the six months ended June 30, 2021[21] - Total capital expenditures during the reporting period amounted to HKD 46,400,000, significantly up from HKD 2,713,000 for the same period in 2020[107] Market and Business Expansion - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[16] - The company is actively exploring potential mergers and acquisitions to enhance its market position and operational capabilities[16] - Revenue from distribution, trading, and processing business increased from approximately HKD 7,687,963,000 in the corresponding period to approximately HKD 18,102,439,000 in the interim period, driven by the recovery of the Chinese economy post-COVID-19[87] - The company plans to expand its financial services to include a wide range of offerings such as securities and derivatives services in Hong Kong and Singapore[89] - The company aims to diversify its product and service offerings, focusing on global settlement services, inter-dealer OTC brokerage, structured trade financing, and China access products[92] Employee and Operational Costs - The group’s employee costs, excluding director remuneration, amounted to HKD 68,455, a significant increase from HKD 31,331 in the previous year, reflecting higher operational costs[37][38] - The group employed a total of 144 employees as of June 30, 2021, with 8 in Hong Kong, 71 in Singapore, and 65 in China[109] Shareholder Information - As of June 30, 2021, the total number of issued shares was 13,471,344,631[119] - Mr. You Zhenhua holds 3,840,000 ordinary shares, representing approximately 0.03% of the issued share capital[117] - Mr. You Zhenhua has a controlling interest in Wide Bridge Limited, which holds 8,494,907,176 shares, accounting for 63.06% of the issued share capital[117] - Mr. Liu Bin owns 850,000,000 shares, which is approximately 6.31% of the issued share capital[117] - No arrangements were made for directors or their family members to purchase shares or bonds of the company during the reporting period[120] Risks and Compliance - The company faces commodity price risk, which can lead to unstable operating performance due to market price fluctuations[100] - Currency exchange rate risk is monitored, particularly for transactions denominated in RMB[101] - The company employs credit enhancement products to mitigate counterparty credit and performance risks[102] - The group has been monitoring potential compliance risks, including insider trading and money laundering activities, with external professional advisors as necessary[105] - The group has adhered to all corporate governance codes during the reporting period, with specific attention to the separation of roles between the chairman and the CEO[110]
至源控股(00990) - 2020 - 年度财报
2021-04-29 08:45
[Company Information](index=2&type=section&id=Company%20Information) The report provides detailed company information, including executive and non-executive directors, committee members, authorized representatives, company secretary, auditor, legal counsel, registered office, principal bankers, and share registrar - The report provides detailed company information, including executive and non-executive directors, committee members, authorized representatives, company secretary, auditor, legal counsel, registered office, principal bankers, and share registrar[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) [Directors' Report](index=6&type=section&id=Directors'%20Report) This report, presented by Executive Director Mr. Wu Lei, highlights the Group's exceptional financial performance in 2020, emphasizing significant net profit growth driven by strong distribution and trading (especially iron ore) and financial services businesses, alongside investments in human capital and future outlook Key Financial Performance for 2020 | Indicator | 2020 (HKD) | 2019 (HKD) | Change | | :--- | :--- | :--- | :--- | | **Group Net Profit** | 500,341,000 | 182,910,000 | ▲ 173.5% | | **Distribution and Trading Segment Profit (PBT)** | 442,945,000 | 171,168,000 | ▲ 158.8% | | **Financial Services Segment Profit (PBT)** | 99,585,000 | 74,638,000 | ▲ 33.4% | | **Group Gross Profit** | 627,552,000 | 474,789,000 | ▲ 32.2% | - Gross profit growth was primarily driven by (i) favorable pricing from strong long-term supplier relationships, (ii) significant increase in iron ore prices due to robust Chinese demand and global supply disruptions, and (iii) strong performance in the financial services segment due to increased market volatility[10](index=10&type=chunk) - The Group aims to continue expanding its iron ore trading business to meet Chinese market demand and to broaden its financial services platform by introducing new financial products[10](index=10&type=chunk) - The Group prioritizes human capital investment, with employee numbers increasing from **69** at the end of 2019 to **78** at the end of 2020, across Hong Kong, Singapore, and China[11](index=11&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) The Group's total revenue increased by 41% year-on-year to approximately HKD 16 billion in 2020, with profit for the year surging by 173.5% to HKD 500 million, primarily driven by strong performance in distribution and trading (especially iron ore sales volume and price increases) and financial services (increased demand for commodity derivatives), alongside foreign exchange gains from RMB appreciation [Financial and Business Review](index=8&type=section&id=Financial%20and%20Business%20Review) In 2020, the Group's total revenue increased by 41% year-on-year to approximately HKD 16 billion, with profit for the year surging by 173.5% to HKD 500 million, primarily driven by distribution and trading (especially iron ore sales volume and price increases) and financial services (increased demand for commodity derivatives), alongside foreign exchange gains from RMB appreciation Financial Summary for 2020 | Indicator (HKD thousands) | 2020 | 2019 | | :--- | :--- | :--- | | **Revenue** | 15,997,421 | 11,330,882 | | **Profit for the year** | 500,341 | 182,910 | | **Basic earnings per share** | 3.77 HK cents | 1.43 HK cents | Revenue by Business Segment and Product for 2020 (HKD thousands) | Business/Product | 2020 Revenue | 2019 Revenue | | :--- | :--- | :--- | | **Distribution and Trading** | **15,687,666** | **11,134,080** | | - Iron ore | 12,859,655 | 10,177,989 | | - Other commodities | 2,828,011 | 956,091 | | **Financial Services** | **309,755** | **196,802** | | **Total** | **15,997,421** | **11,330,882** | - Iron ore sales volume increased from approximately **14.718 million tonnes** in 2019 to approximately **16.933 million tonnes** in 2020[15](index=15&type=chunk) - Other income of approximately **HKD 46.05 million** was recorded for the year, compared to other losses of **HKD 131 million** last year, primarily due to a net foreign exchange gain of approximately **HKD 28.18 million** from RMB appreciation in the current year[15](index=15&type=chunk) [Future Outlook](index=10&type=section&id=Future%20Outlook) The Group future will focus on the continued development of its financial services and distribution and trading businesses, expanding financial services to include securities, derivatives trading, market making, asset and fund management, while anticipating strong demand for high-quality iron ore in China, with limited impact from the COVID-19 pandemic - Financial services business will expand into broader areas, including securities and derivatives financial services, futures and derivatives products, market-making services, margin financing, lending, and fund management[18](index=18&type=chunk) - A subsidiary of the Group was approved by the Monetary Authority of Singapore as a Registered Fund Management Company in **December 2020**[21](index=21&type=chunk) - In distribution and trading, China's iron ore imports reached a record high of **1.17 billion tonnes** in 2020 due to steel industry reforms and increased infrastructure spending, and the Group believes demand will remain strong in 2021[23](index=23&type=chunk) - The COVID-19 pandemic had limited impact on the Group's distribution and trading business due to strong Chinese market demand and global supply disruptions supporting iron ore prices[24](index=24&type=chunk) [Liquidity and Financial Resources](index=14&type=section&id=Liquidity%20and%20Financial%20Resources) As of the end of 2020, the Group maintained a robust financial position with ample liquidity, evidenced by a significant increase in net current assets, no outstanding loans or other borrowings, and a zero gearing ratio, indicating extremely low financial leverage Financial Position Indicators (as of December 31) | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | **Net current assets** | approx. HKD 1.821 billion | approx. HKD 1.293 billion | | **Net assets** | approx. HKD 1.841 billion | approx. HKD 1.314 billion | | **Loans and other borrowings** | 0 | approx. HKD 625 million | | **Current ratio** | 1.84 | 1.38 | | **Gearing ratio** | 0 | 0.48 | [Key Risks and Uncertainties](index=13&type=section&id=Key%20Risks%20and%20Uncertainties) The Group faces key risks including commodity price volatility, foreign exchange fluctuations (especially RMB), counterparty credit and performance risks, interest rate risk, and complex legal, regulatory, and compliance risks inherent in its financial services business - Commodity price risk: The Group's revenue and profit are affected by fluctuations in commodity market prices, which are beyond the Group's control[29](index=29&type=chunk) - Foreign exchange fluctuation risk: The Group faces exchange rate risk due to transactions denominated in RMB[30](index=30&type=chunk) - Legal, regulatory, and compliance risk: The financial services industry is subject to extensive and evolving regulations, which could lead to legal sanctions, financial losses, or reputational damage[33](index=33&type=chunk)[34](index=34&type=chunk) [Report of the Directors](index=16&type=section&id=Report%20of%20the%20Directors) This report outlines the Group's principal activities, divided into two main segments: (i) distribution and trading of commodities and related products in Hong Kong, Singapore, and China; and (ii) financial services, including lending, securities and derivatives financial services, market making, margin financing, and fund management in Hong Kong and Singapore [Principal Activities and Business Review](index=16&type=section&id=Principal%20Activities%20and%20Business%20Review) This report outlines the Group's principal activities, divided into two main segments: (i) distribution and trading of commodities and related products in Hong Kong, Singapore, and China; and (ii) financial services, including lending, securities and derivatives financial services, market making, margin financing, and fund management in Hong Kong and Singapore - The Group primarily operates in two core segments: distribution and trading, and financial services[40](index=40&type=chunk) [Dividends](index=16&type=section&id=Dividends) The Board of Directors does not recommend the payment of any dividend for the year ended December 31, 2020 - No dividends were declared for both the **2020** and **2019** financial years[42](index=42&type=chunk) [Major Customers and Suppliers](index=21&type=section&id=Major%20Customers%20and%20Suppliers) The report discloses the concentration of major customers and suppliers for 2020, with the largest customer accounting for 15.9% of total sales and the largest supplier for 27.8% of total purchases, indicating some concentration risk Customer and Supplier Concentration for 2020 | Category | Percentage of Group Total | | :--- | :--- | | **Largest customer** | 15.9% | | **Top five customers combined** | 28.0% | | **Largest supplier** | 27.8% | | **Top five suppliers combined** | 64.3% | [Connected Transactions](index=22&type=section&id=Connected%20Transactions) This section details the Group's continuing connected transactions in 2020, primarily financial services agreements with PSU (a wholly-owned subsidiary of the controlling shareholder) and E&F Resources (a subsidiary-level connected person), and an office lease agreement with PSU, all reviewed by independent non-executive directors and auditors for normal commercial terms and fairness - Service agreements were entered into with Prosperity Steel United Singapore Pte Ltd (PSU), wholly-owned by controlling shareholder Mr. You Zhenhua, for derivatives execution and settlement services; actual transaction value in 2020 was approximately **HKD 13.37 million**, not exceeding the annual cap of **HKD 35 million**[63](index=63&type=chunk)[64](index=64&type=chunk)[68](index=68&type=chunk) - Service agreements were entered into with E&F Resources Pte Limited, a subsidiary-level connected person, for similar financial services; actual transaction value in 2020 was approximately **HKD 14.97 million**, not exceeding the annual cap of **HKD 35 million**[69](index=69&type=chunk)[72](index=72&type=chunk)[76](index=76&type=chunk) - A Group subsidiary entered into a three-year lease agreement with PSU for office premises in Singapore, with lease expenses of approximately **HKD 5.83 million** paid in 2020[77](index=77&type=chunk)[78](index=78&type=chunk) [Biographies of Directors and Senior Management](index=31&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) This section provides detailed personal biographies of the company's executive directors, non-executive directors, independent non-executive directors, and senior management (company secretary), including their age, educational background, professional qualifications, and extensive experience in relevant industries - Executive directors such as Mr. Jiang Jiang, Mr. Wu Lei, and Ms. Chen Jing possess over **ten years** of industry experience in commodity trading, derivatives trading, accounting, and risk management[86](index=86&type=chunk) - The independent non-executive directors team comprises individuals with diverse professional backgrounds in accounting, financial management, and shipping management, providing professional and independent advice to the Board[88](index=88&type=chunk)[89](index=89&type=chunk) [Corporate Governance Report](index=32&type=section&id=Corporate%20Governance%20Report) This report outlines the company's corporate governance practices in 2020, demonstrating adherence to most Code Provisions of the Listing Rules' Corporate Governance Code, while noting deviations regarding the separation of Chairman and CEO roles (due to Chairman vacancy) and the Chairman's absence from the AGM, and detailing the Board's composition, operations, and the responsibilities of its Audit, Remuneration, and Nomination Committees [Corporate Governance Practices](index=33&type=section&id=Corporate%20Governance%20Practices) This report outlines the company's corporate governance practices in 2020, demonstrating adherence to most Code Provisions of the Listing Rules' Corporate Governance Code, while noting deviations regarding the separation of Chairman and CEO roles (due to Chairman vacancy) and the Chairman's absence from the AGM, and detailing the Board's composition, operations, and the responsibilities of its Audit, Remuneration, and Nomination Committees - The Company complied with most Code Provisions of the Corporate Governance Code during the reporting period, with deviations noted for the non-separation of Chairman and Chief Executive Officer roles due to the Chairman position being vacant since **April 2016**[92](index=92&type=chunk) Attendance Record of Board and Committee Meetings in 2020 | Director Name | Board | Audit Committee | Remuneration Committee | Nomination Committee | AGM | | :--- | :--- | :--- | :--- | :--- | :--- | | **Mr. Jiang Jiang** | 4/4 | Not applicable | Not applicable | Not applicable | 1/1 | | **Mr. Wu Lei** | 4/4 | Not applicable | Not applicable | Not applicable | 1/1 | | **Ms. Chen Jing** | 4/4 | Not applicable | Not applicable | Not applicable | 1/1 | | **Mr. Kang Jian** | 4/4 | Not applicable | Not applicable | Not applicable | 1/1 | | **Mr. Chen Ziming** | 4/4 | 2/2 | 2/2 | 1/1 | 1/1 | | **Mr. Wu Shiming** | 4/4 | 2/2 | 2/2 | 1/1 | 1/1 | | **Mr. Liu Song** | 4/4 | 2/2 | 2/2 | 1/1 | 1/1 | - The Audit, Remuneration, and Nomination Committees are each composed of **three** independent non-executive directors, with Mr. Chen Ziming serving as Chairman for all three[102](index=102&type=chunk)[105](index=105&type=chunk)[107](index=107&type=chunk) - The Board is responsible for the Group's risk management and internal control systems, which an independent consultant deemed effective and adequate as of the end of 2020; the Company does not have an internal audit function but engages external professionals, and the Board will annually review the necessity of this arrangement[113](index=113&type=chunk)[114](index=114&type=chunk) [Environmental, Social and Governance Report](index=45&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) This ESG report outlines the Group's corporate social responsibility and sustainability efforts and achievements in 2020, covering all Group operations, with environmental KPI data based on key offices in Hong Kong, Shanghai, and Singapore, adhering to HKEX ESG Reporting Guide, and content determined through stakeholder engagement and materiality assessment [ESG Report Overview](index=45&type=section&id=ESG%20Report%20Overview) This ESG report outlines the Group's corporate social responsibility and sustainability efforts and achievements in 2020, covering all Group operations, with environmental KPI data based on key offices in Hong Kong, Shanghai, and Singapore, adhering to HKEX ESG Reporting Guide, and content determined through stakeholder engagement and materiality assessment - The report covers the environmental and social performance of all Group operations from **January 1 to December 31, 2020**[119](index=119&type=chunk) - The Board is responsible for overseeing the Group's ESG strategy and reporting, and assessing related risks to ensure effective ESG risk management measures are established[121](index=121&type=chunk) [Stakeholder Engagement and Material Issues](index=46&type=section&id=Stakeholder%20Engagement%20and%20Material%20Issues) The Group engages with key stakeholders including government, shareholders, customers, and employees through various communication channels to understand their concerns and expectations, identifying environmental compliance, employment compliance, occupational health and safety, operational compliance, and anti-corruption as material ESG issues for the year through materiality assessment Identified Material ESG Issues | Aspect | Material Issues | | :--- | :--- | | **Environment** | Environmental compliance | | **Labor Practices** | Employment compliance, Occupational health and safety | | **Operating Practices** | Operational compliance, Anti-corruption | [ESG Performance Summary](index=48&type=section&id=ESG%20Performance%20Summary) The report details the Group's environmental protection, employee care, operational compliance, and community engagement initiatives and performance, including emission reduction and waste management, strict labor law compliance, competitive compensation, training, and COVID-19 measures, supply chain management, customer protection, anti-corruption policies, and charitable donations for talent development - Environmentally, as a service-oriented enterprise, the Group's emissions primarily stem from business vehicle use and electricity consumption, with energy-saving and emission reduction measures implemented; waste management adheres to the **'3Rs' principle**[126](index=126&type=chunk)[127](index=127&type=chunk) - Regarding employees, the Group strictly adheres to labor laws, prohibits child and forced labor, and provides competitive compensation, benefits, and training opportunities; total employees in 2020 were **78**, with a turnover rate of **23%**[129](index=129&type=chunk)[130](index=130&type=chunk)[141](index=141&type=chunk) - In response to the COVID-19 pandemic, the Group implemented various control measures, including arranging work-from-home and procuring personal hygiene equipment, to ensure employee health and safety[132](index=132&type=chunk) - Operationally, the Group employs a supplier credit rating system for supply chain management and strictly adheres to privacy regulations to protect customer data; an **Anti-Bribery and Anti-Corruption Policy** has been established, with relevant training provided to employees[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk) Summary of 2020 Environmental Key Performance Indicators (KPIs) | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | **Total greenhouse gas emissions (kg CO2e)** | 53,460 | 59,901 | | **Total energy consumption (MWh)** | 87 | 32 | | **Total non-hazardous waste generated (kg)** | 2,753 | 2,586 | [Consolidated Financial Statements](index=56&type=section&id=Consolidated%20Financial%20Statements) The notes to the financial statements provide detailed explanations and supplementary information for the primary financial statements, including significant accounting policies, key accounting estimates and judgments, and detailed composition and changes of various items, with key notes covering revenue and segment information, financial instrument risk management, and related party transactions [Independent Auditor's Report](index=56&type=section&id=Independent%20Auditor's%20Report) Auditor ZHONGHUI ANDA CPA Limited issued an unmodified opinion on the Group's consolidated financial statements for the year ended December 31, 2020, affirming a true and fair view of the Group's financial position, performance, and cash flows, with key audit matters highlighted as impairment testing of inventories and recoverability assessment of trade and other receivables - The auditor issued an **unmodified audit opinion**, stating that the financial statements present a true and fair view[144](index=144&type=chunk) - Key audit matters include: - Impairment testing of inventories: due to their significant amount (approximately **HKD 767 million**) and involvement of management judgment - Recoverability testing of trade and other receivables: due to their significant aggregate amount (approximately **HKD 2.175 billion**) and involvement of judgment and estimation[147](index=147&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=61&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's operating results for 2020, with total revenue of HKD 15.997 billion, a 41.2% year-on-year increase, and profit for the year reaching HKD 500.34 million, a significant 173.5% increase from HKD 183 million in 2019, with profit attributable to equity holders of the Company at HKD 445.98 million Summary of Consolidated Statement of Profit or Loss (for the year ended December 31) | Item (HKD thousands) | 2020 | 2019 | | :--- | :--- | :--- | | **Revenue** | 15,997,421 | 11,330,882 | | **Gross profit** | 627,552 | 474,789 | | **Profit before tax** | 532,272 | 223,194 | | **Profit for the year** | 500,341 | 182,910 | | **Profit attributable to equity holders of the Company** | 445,977 | 145,745 | | **Basic earnings per share (HK cents)** | 3.77 | 1.43 | [Consolidated Statement of Financial Position](index=62&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement reflects the Group's financial position as of December 31, 2020, with total assets of HKD 4.011 billion, total liabilities of HKD 2.170 billion, and total equity (net assets) of HKD 1.841 billion, a 40.1% increase from HKD 1.314 billion at the previous year-end, notably with a significant reduction in inventories and full repayment of trust receipt loans Summary of Consolidated Statement of Financial Position (as of December 31) | Item (HKD thousands) | 2020 | 2019 | | :--- | :--- | :--- | | **Total assets** | **4,011,422** | **4,734,038** | | - Inventories | 766,573 | 2,078,632 | | - Trade and other receivables | 1,032,014 | 490,449 | | - Cash and bank balances | 720,155 | 813,741 | | **Total liabilities** | **2,169,993** | **3,419,871** | | - Trade and other payables | 498,142 | 1,293,958 | | - Trust receipt loans | — | 625,266 | | **Total equity** | **1,841,429** | **1,314,167** | | - Equity attributable to equity holders of the Company | 1,669,794 | 1,222,513 | [Notes to the Consolidated Financial Statements](index=66&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes to the financial statements provide detailed explanations and supplementary information for the primary financial statements, including significant accounting policies, key accounting estimates and judgments, and detailed composition and changes of various items, with key notes covering revenue and segment information, financial instrument risk management, and related party transactions [Note 7: Revenue and Segment Information](index=86&type=section&id=Note%207%3A%20Revenue%20and%20Segment%20Information) This note details the Group's revenue composition and segment performance, with 'Distribution and Trading' and 'Financial Services' as the two segments; in 2020, distribution and trading contributed the vast majority of revenue (HKD 15.688 billion), while financial services revenue was HKD 310 million, both segments showing significant profit growth with segment profits of HKD 443 million and HKD 99.6 million respectively Segment Results for 2020 (HKD thousands) | Segment | Revenue | Segment Profit | | :--- | :--- | :--- | | **Distribution and Trading** | 15,687,666 | 442,945 | | **Financial Services** | 309,755 | 99,585 | | **Total** | **15,997,421** | **542,530** | - Revenue from one customer in the distribution and trading segment accounted for over **10%** of the Group's total revenue, approximately **HKD 2.5 billion**, indicating a degree of customer concentration[233](index=233&type=chunk) [Note 35: Transactions with Related Parties](index=120&type=section&id=Note%2035%3A%20Transactions%20with%20Related%20Parties) This note discloses significant transactions between the Group and related parties in the ordinary course of business, primarily including brokerage and commission income from related parties owned by the ultimate controlling shareholder (HKD 13.37 million) and lease payments to them (HKD 5.83 million) Major Related Party Transactions in 2020 (HKD thousands) | Transaction Content | Related Party Type | Amount | | :--- | :--- | :--- | | **Brokerage and commission fee income** | Related parties owned by ultimate controlling shareholder | 13,368 | | **Brokerage and commission fee income** | Certain non-controlling interest holders | 14,968 | | **Lease payments** | Related parties owned by ultimate controlling shareholder | 5,830 | [Five Year Financial Summary](index=125&type=section&id=Five%20Year%20Financial%20Summary) This summary presents key financial data for the Group's five fiscal years from 2016 to 2020, clearly reflecting the Group's recent growth trends, particularly the rapid increase in revenue and profitability since 2018, alongside continuous expansion of asset size Five-Year Performance Summary (for the year ended December 31, HKD thousands) | Indicator | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 15,997,421 | 11,330,882 | 4,330,171 | 5,389,307 | 1,581,947 | | **Profit/(Loss) before tax** | 532,272 | 223,194 | 84,134 | 27,004 | (25,556) | | **Profit/(Loss) for the year** | 500,341 | 182,910 | 67,137 | 21,349 | (25,937) | Five-Year Assets and Liabilities Summary (as of December 31, HKD thousands) | Indicator | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total assets** | 4,011,422 | 4,734,038 | 1,817,070 | 961,479 | 664,462 | | **Total liabilities** | (2,169,993) | (3,419,871) | (1,091,908) | (344,047) | (462,230) | | **Net assets** | 1,841,429 | 1,314,167 | 725,162 | 617,432 | 202,232 |
至源控股(00990) - 2020 - 中期财报
2020-09-24 08:33
Revenue and Profitability - Revenue for the six months ended June 30, 2020, was HKD 7,854,938, an increase from HKD 7,606,702 in the same period of 2019, representing a growth of approximately 3.25%[7] - Gross profit for the period was HKD 248,236, compared to HKD 165,245 in 2019, indicating a significant increase of approximately 50.2%[7] - Operating profit reached HKD 153,491, up from HKD 117,157 in the previous year, reflecting a growth of about 30.9%[7] - Profit for the period attributable to equity holders was HKD 98,295, compared to HKD 67,331 in 2019, marking an increase of approximately 46.0%[7] - Total comprehensive income for the period was HKD 129,726, compared to HKD 88,052 in the same period last year, representing an increase of approximately 47.3%[7] - The company reported a basic and diluted earnings per share of HKD 0.83, compared to HKD 0.80 in the same period of 2019, reflecting a growth of approximately 3.75%[7] - The total profit attributable to equity holders for the six months ended June 30, 2020, was HKD 98,295,000, up from HKD 67,331,000 in 2019, indicating a growth of about 46.05%[32] - Basic earnings per share for the interim period were approximately HKD 0.83, compared to HKD 0.80 in the corresponding period[70] Cash and Liquidity - Cash and bank balances as of June 30, 2020, were HKD 1,522,872, significantly higher than HKD 813,741 as of December 31, 2019, indicating a growth of approximately 87.0%[8] - The cash and cash equivalents at the end of the period were HKD 417,449,000, down from HKD 720,650,000 in 2019, indicating a decrease of approximately 42%[12] - Operating cash flow for the six months ended June 30, 2020, was HKD 5,767,834,000, compared to HKD 1,912,924,000 in 2019, reflecting an increase of about 201%[12] - As of June 30, 2020, the group's net current assets increased to approximately HKD 1,449,333,000, up from HKD 1,293,345,000 as of December 31, 2019[86] - The total amount of loans and borrowings as of June 30, 2020, was approximately HKD 808,351,000, compared to HKD 625,266,000 as of December 31, 2019[86] - The current ratio as of June 30, 2020, was approximately 1.61, an increase from 1.39 as of December 31, 2019[86] - The debt-to-equity ratio as of June 30, 2020, was approximately 0.55, compared to 0.48 as of December 31, 2019[86] Assets and Liabilities - Current liabilities decreased to HKD 2,386,296 from HKD 3,287,386 at the end of 2019, showing a reduction of approximately 27.4%[8] - The group's total assets as of June 30, 2020, amounted to HKD 3,855,484,000, while total liabilities were HKD 1,775,277,000[25] - The group’s total liabilities decreased from HKD 2,621,315,000 as of December 31, 2019, to HKD 1,775,277,000 as of June 30, 2020[25] - Trade payables and notes payable decreased to HKD 170,383,000 as of June 30, 2020, from HKD 1,293,958,000 as of December 31, 2019, indicating a decline of approximately 86.8%[48] - Trust receipt loans secured decreased to HKD 560,435,000 as of June 30, 2020, from HKD 625,266,000 as of December 31, 2019, reflecting a decrease of approximately 10.4%[48] Segment Performance - Total revenue for the six months ended June 30, 2020, was HKD 7,854,938,000, with distribution and trading contributing HKD 7,687,963,000 and financial services contributing HKD 166,975,000[22] - The group reported a total segment profit of HKD 154,533,000, with distribution and trading generating HKD 95,429,000 and financial services generating HKD 59,104,000[22] - The group recognized a total of HKD 7,715,193,000 in customer contract revenue, with HKD 7,687,963,000 from trading of bulk commodities and HKD 27,230,000 from commission income and brokerage fees[26] - The group’s financial services segment reported a revenue of HKD 166,975,000, which is a significant contribution to the overall revenue[22] - The company recorded financial services revenue of approximately HKD 166,975,000, up from HKD 99,569,000 in the previous year, due to increased demand for commodity derivative services[69] Investments and Capital Expenditures - The company issued new shares during the rights issue, raising HKD 393,897,000, which contributed to the increase in total equity[11] - The company has a capital commitment of HKD 50,336,000 for an investment in a joint venture company, Tianjin Dongming Financing Leasing Co., Ltd.[62] - The total capital expenditure during the interim period was approximately HKD 1,529,000, used for leasehold improvements[87] Market and Economic Conditions - The demand for iron ore in China remains strong, with imports reaching 1.07 billion tons in 2019, and the company expects continued robust demand in 2020[75] - The impact of the COVID-19 pandemic on the company's distribution and trading business has been limited, with strong demand for iron ore in China[75] - The group faced various risks including commodity price fluctuations, exchange rate volatility, and regulatory compliance risks[81][82][85] Corporate Governance and Management - The audit committee, consisting of three independent non-executive directors, reviewed the company's interim financial performance for the six months ended June 30, 2020[93] - Major shareholder Mr. You Zhenhua holds 3,840,000 shares (0.03%) directly and 8,441,527,176 shares (71.29%) through a controlled company[95] - Mr. Kang Jian resigned as vice chairman and was appointed as a non-executive director effective March 3, 2020[96]
至源控股(00990) - 2019 - 年度财报
2020-04-28 08:48
Financial Performance - The company reported a profit attributable to equity holders of approximately HKD 145,745,000 for the year ended December 31, 2019, compared to HKD 61,893,000 for the corresponding year, representing an increase of approximately 135%[8]. - Total revenue for the year was approximately HKD 11,280,616,000, an increase of about 161% from HKD 4,330,171,000 in the previous year[13]. - The company's gross profit rose from approximately HKD 188,862,000 in the previous year to approximately HKD 509,904,000 in the current year[8]. - The company reported a net profit attributable to equity holders of approximately HKD 145,745,000, up from HKD 61,893,000 in the previous year, reflecting the increase in gross profit despite higher operating expenses[18]. - The company’s basic earnings per share for 2019 was HKD 1.43 cents, compared to HKD 0.76 cents for the previous year[13]. - The total comprehensive income for the year was HKD 185,403,000, compared to HKD 65,570,000 in 2018, reflecting overall growth in financial results[161]. Segment Performance - The distribution and trading segment achieved a segment profit before tax of approximately HKD 171,168,000, up about 86% from approximately HKD 92,056,000 in the previous year[8]. - The financial services segment recorded a segment profit before tax of approximately HKD 74,638,000, significantly higher than approximately HKD 2,336,000 in the previous year[8]. - Financial services revenue rose to HKD 196,802,000 from HKD 58,478,000, indicating the division's growth and expansion into various financial services[16]. Business Expansion and Strategy - The company has been actively exploring new business opportunities, including the launch of commodity derivative financial services since the end of 2017[9]. - The company aims to expand its iron ore trading business in response to strong demand from China, while also seeking to introduce new financial products to its service platform[8]. - The company plans to expand its financial services to include securities and derivatives trading in Hong Kong and Singapore, aiming to enhance its market presence[19]. - The company aims to diversify its business by expanding into new financial services, including structured trade financing and global settlement services[23]. Workforce and Human Capital - The company expanded its workforce from 49 employees at the end of 2018 to 69 employees by the end of 2019, indicating a focus on human capital investment[11]. - The group employed a total of 69 staff members, with 8 in Hong Kong, 50 in Singapore, and 11 in China as of December 31, 2019[39]. Financial Position and Assets - The company reported net current assets of approximately HKD 1,293.3 million as of December 31, 2019, compared to HKD 682.6 million in 2018[36]. - The company's total loans and borrowings amounted to approximately HKD 625.3 million as of December 31, 2019, up from HKD 225.7 million in 2018[36]. - The equity attributable to shareholders was approximately HKD 1,222,513,000, an increase from HKD 680,423,000 in 2018[40]. - The group’s inventory balance as of December 31, 2019, was approximately HKD 2,078,632,000, which is significant for the consolidated financial statements[156]. Corporate Governance - The company has complied with all provisions of the corporate governance code for the year ending December 31, 2019, except for specific clauses[104]. - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors[107]. - The roles of chairman and CEO were separated on July 29, 2019, with Jiang Jiang appointed as CEO[105]. - The independent non-executive directors confirmed their independence in accordance with listing rules[107]. Environmental and Social Responsibility - The company actively implements measures to reduce environmental impact and promote sustainability in its operations[91]. - The company is committed to reducing emissions and has implemented measures to minimize its carbon footprint, including regular vehicle maintenance and promoting video conferencing to reduce travel emissions[137]. - Employee welfare is prioritized, with competitive salary structures reviewed annually and additional performance-based bonuses offered[142]. Risk Management - The company has established a risk management system to identify, assess, and manage risks related to its business operations[123]. - The board is responsible for reviewing the effectiveness of the group's risk management and internal control systems annually, considering changes in significant risks and the group's response capabilities[126]. Stakeholder Engagement - Stakeholder engagement is crucial for understanding expectations and concerns, and the company has established communication channels to address feedback effectively[133]. - The company encourages feedback on the ESG report through a dedicated email address for stakeholder suggestions[136].
至源控股(00990) - 2019 - 中期财报
2019-09-26 08:50
Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 2,528,757,000, an increase of 6.98% compared to HKD 2,363,512,000 in the same period of 2018[8] - Gross profit for the same period was HKD 165,245,000, with a gross margin of approximately 6.52%[8] - Operating profit increased significantly to HKD 117,157,000, compared to HKD 25,544,000 in the previous year, representing a growth of 359.56%[8] - Profit before tax reached HKD 110,364,000, a substantial increase from HKD 22,883,000 in 2018, marking a growth of 382.56%[8] - Net profit for the period was HKD 88,273,000, compared to HKD 17,792,000 in the prior year, reflecting a growth of 394.66%[8] - Basic and diluted earnings per share increased to HKD 0.80, up from HKD 0.20 in the same period last year, representing a 300% increase[8] - The company reported a total comprehensive income of HKD 88,052,000 for the period, significantly higher than HKD 17,937,000 in the same period of 2018[8] - The total comprehensive income attributable to equity holders for the six months ended June 30, 2019, was HKD 17,937,000, compared to HKD 16,598,000 for the same period in 2018, representing an increase of 8.1%[10] Assets and Liabilities - Total assets as of June 30, 2019, amounted to HKD 4,189,110,000, compared to HKD 1,774,467,000 at the end of 2018, indicating a growth of 136.36%[9] - Total liabilities increased to HKD 2,986,422,000, up from HKD 1,091,908,000, reflecting a growth of 173.36%[9] - Equity attributable to equity holders of the company rose to HKD 1,141,430,000, compared to HKD 680,423,000 in the previous year, marking a growth of 67.67%[9] - The total equity attributable to equity holders increased to HKD 1,207,111,000 as of June 30, 2019, compared to HKD 677,529,000 at the end of June 2018, marking an increase of 78.1%[10] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 1,912,924,000, an increase from HKD 1,216,139,000 in the previous year, reflecting a growth of 57.2%[11] - The total cash and cash equivalents at the end of the period was HKD 720,650,000, up from HKD 439,623,000 in the previous year, indicating a year-over-year increase of 63.9%[11] - The company reported a net cash outflow from financing activities of HKD 1,480,526,000 for the six months ended June 30, 2019, compared to HKD 847,088,000 in the previous year[11] - The company’s investment activities generated a net cash inflow of HKD 38,220,000 during the period, compared to a net cash outflow of HKD 27,823,000 in the previous year[11] Share Capital and Dividends - The company issued new shares during the rights issue, raising net proceeds of HKD 393,897,000[11] - The company did not declare any interim dividends for the periods ended June 30, 2019, and June 30, 2018[46] - The company issued 3,947,115,000 new ordinary shares at HKD 0.10 per share, raising approximately HKD 394,711,000 during the rights issue completed on June 13, 2019[62] Segment Performance - The revenue from commodity trading sales was HKD 2,045,459,000, up 47.5% from HKD 1,387,494,000 year-on-year[26] - The financial services segment generated revenue of HKD 99,569,000, contributing to a total segment profit of HKD 38,923,000[28] - The total segment profit for the group was HKD 122,560,000, with a pre-tax profit of HKD 110,364,000 after financing costs of HKD 6,758,000[28] - The group reported a significant increase in derivative trading income, which rose to HKD 78,564,000 from HKD 8,927,000 in the previous year[26] Inventory and Receivables - The company’s inventory of finished goods increased significantly to HKD 1,672,457,000 as of June 30, 2019, compared to HKD 365,724,000 in the previous year[44] - Accounts receivable from futures contract trading increased to HKD 893,491,000 as of June 30, 2019, up from HKD 434,175,000 as of December 31, 2018, representing a growth of 105.8%[52] - Trade deposits and prepayments rose significantly to HKD 245,661,000 as of June 30, 2019, compared to HKD 76,445,000 as of December 31, 2018, marking an increase of 221.5%[54] - Trade receivables and notes receivable decreased to HKD 366,521,000 as of June 30, 2019, from HKD 595,030,000 as of December 31, 2018[49] Financial Ratios - The current ratio was approximately 1.40 as of June 30, 2019, down from 1.63 as of December 31, 2018[97] - The debt-to-equity ratio was approximately 0.41 as of June 30, 2019, compared to 0.31 as of December 31, 2018[97] Corporate Governance and Management - The company has adopted the corporate governance code and complied with all relevant provisions during the six months ended June 30, 2019[101] - Total remuneration for key management personnel increased to HKD 4.842 million for the six months ended June 30, 2019, compared to HKD 5.025 million for the same period in 2018[68] - The company appointed Mr. Jiang Jiang as the executive director and CEO effective July 29, 2019[111] Future Plans and Market Outlook - The company plans to continue expanding its operations in Hong Kong, Singapore, and China, focusing on commodity trading and financial services[28] - The company plans to expand its financial services to include a wider range of offerings, such as securities and derivatives services in Hong Kong and Singapore, as well as market-making and guarantee financing[79] - The group aims to build a derivatives financial services platform to facilitate international commodity trading, leveraging structural changes in the financial services sector over the past decade[82]
至源控股(00990) - 2018 - 年度财报
2019-04-29 09:11
Financial Performance - The company reported a profit attributable to equity holders of approximately HKD 61,893,000 for the year ended December 31, 2018, compared to HKD 21,349,000 for the corresponding year, representing a significant increase [9]. - The distribution and trading segment achieved a segment profit before tax of approximately HKD 92,056,000, up about 57.2% from HKD 58,560,000 in the previous year [9]. - The gross profit margin improved from approximately 1.3% in the previous year to about 4.4% in the current year, primarily driven by the distribution and trading segment [9]. - Total revenue for the year was approximately HKD 4,330,171,000, a decrease of about 19.7% from HKD 5,389,307,000 in the previous year [13]. - The company successfully launched commodity derivative-related financial services, resulting in a segment profit before tax of approximately HKD 2,336,000, compared to a loss of HKD 17,447,000 in the previous year [11]. - In 2018, the company's iron ore revenue decreased to approximately HKD 4,271,693,000 from HKD 4,933,586,000 in 2017, with sales volume dropping from 12,403,000 tons to 8,173,000 tons [16]. - The financial services segment generated revenue of HKD 58,478,000 in 2018, a significant increase from HKD 392,000 in 2017, due to the expansion of market-making services and other financial services [16]. - The company reported a total comprehensive income of HKD 65,570,000 for 2018, significantly higher than HKD 21,186,000 in 2017, reflecting an increase of approximately 209.5% [147]. - The company recognized an impairment loss on other income and gains amounting to HKD (22,995,000) in 2018, compared to HKD (6,281,000) in 2017 [147]. Operational Developments - The number of employees increased from 34 at the end of 2017 to 49 at the end of 2018, reflecting the company's commitment to investing in human capital [11]. - The company plans to continue exploring new business opportunities to enhance its spot commodity trading operations [11]. - The company established partnerships with new suppliers, allowing for competitive pricing in iron ore trading [9]. - The company plans to focus on the continuous development of financial services and distribution and trading businesses in 2019, including expanding into securities and derivatives services in Hong Kong and Singapore [18]. - The company has adopted a stock option plan to reward selected participants for their contributions [50]. Financial Position - As of December 31, 2018, the company reported net current assets of approximately HKD 682,559,000, an increase from HKD 613,773,000 in 2017, and total assets of approximately HKD 725,162,000, up from HKD 617,432,000 [30]. - The company's total loans and borrowings amounted to approximately HKD 225,670,000 as of December 31, 2018, compared to HKD 37,796,000 in 2017 [30]. - The current ratio as of December 31, 2018, was approximately 1.63, down from 2.78 in 2017, while the debt-to-equity ratio was approximately 0.31, up from 0.06 in 2017 [30]. - The company’s total liabilities included trade receivables of approximately HKD 595,030,000 and loans to customers of approximately HKD 15,000,000 as of December 31, 2018 [143]. - The company’s total liabilities increased to HKD 1,091,908 in 2018 from HKD 344,047 in 2017, reflecting increased borrowing for expansion [150]. Governance and Compliance - The company has adhered to all provisions of the corporate governance code for the year ending December 31, 2018, maintaining high levels of transparency, independence, integrity, and accountability [84]. - The board consists of eight members, including five executive directors and three independent non-executive directors, ensuring a balance of expertise, skills, and experience [88]. - The audit committee is responsible for overseeing the integrity of the group's financial reporting and internal control systems [105]. - The company has established a risk management system that includes identifying risks, assessing their likelihood and impact, and managing responses, with no significant risks identified in the 2018 assessment [109]. - The company has established various communication channels with shareholders, including printed materials and a dedicated website for investor relations [115]. Environmental and Social Responsibility - The company actively implements measures to reduce environmental impact and promote sustainability in its operations [73]. - The company is committed to reducing greenhouse gas emissions and has implemented measures such as conducting meetings via phone or video to minimize unnecessary travel emissions [126]. - The company generated non-hazardous waste solely from daily office activities, with hazardous waste arising from used ink cartridges and batteries, all managed according to relevant laws [127]. - The company has committed to maintaining transparency and effective communication with shareholders to enhance company value [123]. - The company emphasizes compliance with national policies and regulations, supporting local economic development, and timely tax payments as key expectations from stakeholders [123]. Employee Relations - The company emphasizes the importance of maintaining good relationships with employees, customers, and business partners to achieve long-term goals [72]. - Employee compensation is reviewed annually to ensure competitive salary packages, including discretionary bonuses based on individual and company performance [132]. - The employee turnover rate rose significantly to 37%, compared to just 6% in the previous year, indicating potential challenges in employee retention [140]. - The company encourages employees to participate in internal training and external seminars to enhance their knowledge and skills [132]. - The company has established communication channels for employee feedback, including meetings and employee mailboxes [125].