MOMENTUM FIN(01152)

Search documents
正乾金融控股(01152) - 2020 - 年度财报
2021-04-29 02:08
Cross-Border E-Commerce - The total value of China's cross-border e-commerce imports and exports reached CNY 1.69 trillion (USD 261.5 billion) in 2020, representing a year-on-year increase of 31.1%[6] - The company has entered into a cooperation service agreement with Shenzhen Qihao E-commerce Co., Ltd. to promote its products on Qihao's platform, enhancing its presence in the rapidly growing cross-border e-commerce market[9] - The "dual circulation" strategy proposed by the Chinese government is expected to drive the expansion and upgrading of the domestic consumer market, benefiting cross-border e-commerce[6] - Cross-border e-commerce has become a vital channel for mainland consumers to access imported goods, especially during the COVID-19 pandemic[7] - The company recognizes the current opportunity to enter the Chinese market through cross-border trade and e-commerce, leveraging the favorable business environment in Hong Kong[7] - The company is focused on expanding its cross-border trade business related to nutritional and health products through various collaborations and acquisitions[6] - The management believes that the increasing diversification of product consumption demand presents opportunities for collaboration with cross-border trade platforms[7] - Hong Kong plays a significant role in the retail import market for cross-border e-commerce, benefiting from its proximity to the mainland and tax exemption policies[7] Financial Performance - The cross-border trade business segment, focusing on nutritional and health products, recorded revenue of approximately HKD 335.5 million for the year ended December 31, 2020, representing a 14.0% increase compared to the previous year[18] - The financing leasing business segment generated revenue of approximately HKD 6.1 million, an increase of 17.3% year-on-year[20] - The group's gross profit increased by 39.3% to approximately HKD 24.9 million, with the gross profit margin rising from about 6.0% to 7.0%[23] - Administrative and other expenses decreased by 24.6% to approximately HKD 19.2 million due to cost-saving measures implemented by the group[24] - The group recorded a net profit of approximately HKD 4.9 million for the reporting period, a turnaround from a net loss of approximately HKD 18.7 million in 2019[27] Strategic Developments - The group established three large bonded warehouses in China, including a 1,383 square meter duty-free warehouse in Yiwu and a 1,329 square meter logistics warehouse in Nanchang[12] - The group acquired 100% equity of Shenzhen Yueyang, enhancing its logistics capabilities and establishing a direct customs clearance system for goods entering China[10] - The group plans to expand its customer base globally, focusing on introducing overseas products into the Chinese market and developing markets in Australia, the United States, and Japan[12] - The group aims to strengthen its market position through strategic arrangements, including introducing new customers and suppliers, enhancing product lines, and improving operations to reduce costs[17] Corporate Governance - The company is committed to high levels of corporate governance to protect shareholder interests[125] - The board of directors consists of four executive directors and three independent non-executive directors, with terms subject to re-election every three years[93] - The company has adopted a share option scheme to reward eligible participants, with a limit on the total number of shares that can be issued under the scheme not exceeding 30% of the issued shares[104] - The board is responsible for the stability and effectiveness of the internal control system, ensuring compliance with regulations[156] - The company has complied with the corporate governance code as outlined in the listing rules for the year ending December 31, 2020[144] Risk Management - The company is closely monitoring market risks, including currency, interest rate, and liquidity risks, to ensure effective management and operational stability[52][53][54][55] - The company has implemented a risk assessment framework for investment decisions, ensuring thorough analysis before approving new investments[58] - The company has established a risk management system that did not identify any significant risks during the 2020 risk assessment[149] - The internal control system is designed according to the COSO framework, ensuring operational effectiveness and compliance with applicable laws[150] Environmental Responsibility - The company has maintained its commitment to environmental protection, adhering to applicable laws and regulations, and does not generate significant waste emissions during operations[171] - The company emphasizes energy conservation and recycling principles, encouraging employees to adopt green office practices[173] - The company has implemented measures to reduce paper usage and waste disposal, such as double-sided printing and reusing paper[173] - The company prioritizes the use of energy-efficient office supplies and equipment to enhance energy usage efficiency[173] Employee Welfare - The workforce increased to 31 employees in 2020, up from 17 in 2019, with a gender distribution of 70% male and 30% female[186] - The company implemented various policies to ensure employee health and safety during the COVID-19 pandemic, including daily temperature checks and provision of masks[190] - The company has committed to providing regular training programs for employees to enhance their skills and knowledge[191] - The company aims to maintain a competitive compensation policy to attract and retain qualified employees[184] Customer Relations - The company has implemented a complaint mechanism for customer inquiries and complaints, ensuring compliance with local industry laws[197] - The company has established a data confidentiality mechanism to protect customer data and prevent unauthorized disclosure[197] Shareholder Communication - The company has set up a website to provide shareholders and investors with the latest information on business development and financial data[163] - The company has established a communication channel between shareholders and the board of directors to encourage participation in annual meetings[163]
正乾金融控股(01152) - 2020 - 中期财报
2020-09-14 02:22
Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 103,374,000, a 95% increase from HKD 53,050,000 in the same period of 2019[5] - Gross profit for the same period was HKD 7,480,000, up 68% from HKD 4,430,000 year-on-year[5] - The company reported a loss before tax of HKD 7,977,000, an improvement from a loss of HKD 11,178,000 in the previous year[5] - The net loss for the period was HKD 8,109,000, compared to a net loss of HKD 11,621,000 in the same period last year, reflecting a 30% reduction in losses[5] - The group reported a pre-tax loss of HKD 7,977,000 for the six months ended June 30, 2020, compared to a pre-tax loss of HKD 11,178,000 for the same period in 2019, indicating a reduction in losses[34] - The group reported a loss attributable to owners of the company of HKD 8,109,000 for the six months ended June 30, 2020, compared to a loss of HKD 11,621,000 in the same period of 2019, indicating an improvement of approximately 30.1%[46] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 185,250,000, down from HKD 206,445,000 at the end of 2019[7] - Current liabilities decreased to HKD 121,264,000 from HKD 142,176,000, indicating improved liquidity management[7] - Total assets decreased from HKD 253,168,000 as of December 31, 2019, to HKD 222,117,000 as of June 30, 2020, representing a decline of approximately 12.3%[36] - The group’s total liabilities decreased from HKD 200,982,000 as of December 31, 2019, to HKD 179,922,000 as of June 30, 2020, a reduction of approximately 10.5%[36] - The debt-to-asset ratio as of June 30, 2020, was 46.5%, up from 40.9% on December 31, 2019, primarily due to a decrease in finance lease receivables and trade receivables[100] Cash Flow and Financing - Cash and cash equivalents at the end of the period were HKD 41,735,000, slightly down from HKD 43,915,000 at the beginning of the year[12] - The company generated HKD 893,000 in net cash from operating activities, a significant turnaround from a cash outflow of HKD 60,684,000 in the previous year[12] - The company issued convertible bonds amounting to HKD 6,640,000 during the period, contributing to its capital reserves[10] - The group issued convertible bonds totaling HKD 39,000,000 with a 5% annual interest rate, and as of June 30, 2020, approximately HKD 15,000,000 of the net proceeds was used to repay part of shareholder loans[98] Revenue Segments - Revenue from cross-border trade in nutritional food products and health supplements was HKD 100,887,000, up from HKD 50,229,000, representing a 100% increase year-over-year[25] - Revenue from external customers in Hong Kong increased significantly from HKD 50,229,000 in 2019 to HKD 100,887,000 in 2020, marking a growth of 100.5%[38] - The cross-border trade segment for nutritional and health products reported a profit of approximately HKD 4,888,000, a significant increase of about 533.2% year-on-year, attributed to the commencement of this business in June 2019[93] - The financing leasing segment recorded a profit of approximately HKD 495,000, a notable increase compared to the previous year's loss of approximately HKD 391,000, driven by a focus on the medical equipment financing leasing market in China[93] Expenses and Costs - The group’s administrative and other expenses totaled HKD 8,182,000 for the six months ended June 30, 2020, compared to HKD 7,595,000 in the same period of 2019[34] - The financing costs for the period were HKD 5,083,000, an increase from HKD 3,567,000 in the previous year, reflecting a rise of approximately 42%[34] - Interest expenses for the six months ended June 30, 2020, totaled HKD 5,083,000, up from HKD 3,567,000 in 2019, representing an increase of approximately 42.5%[39] Strategic Initiatives - The company is exploring opportunities for deeper cooperation and/or investment in Shenzhen Overseas Supply Chain Management Co., Ltd. for cross-border trade business[78] - The company is adjusting its trading business strategy to focus more on cross-border e-commerce due to a decrease in Chinese tourists visiting Hong Kong[81] - The group has signed a cooperation service agreement with an online shopping platform in China to sell nutritional food products, capitalizing on the high traffic of online shopping platforms in the region[82] - The group aims to diversify its product offerings, suppliers, and fundraising channels to increase revenue sources while implementing cost-saving measures to improve profitability and financial condition[94] Governance and Compliance - The company has complied with the Corporate Governance Code as of June 30, 2020[128] - No directors or their associates have any interests in businesses that directly or indirectly compete with the group[127] - The company has adopted a code of conduct for securities trading by directors, which complies with the standards set out in the Listing Rules[131] - The audit committee reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2020[132]
正乾金融控股(01152) - 2019 - 年度财报
2020-05-14 13:19
Cross-Border E-Commerce and Market Expansion - The company has expanded its cross-border e-commerce trade to meet the growing demand for nutritional products in China, starting from June 2019[7]. - A cooperation service agreement was signed with Shenzhen Qihao E-commerce Co., Ltd. on July 2, 2019, to promote and sell the company's products on their online platform[10]. - The company aims to increase the gross profit margin from trade operations by directly selling nutritional products to end customers through online platforms[10]. - The management team has shifted the sales strategy from relying on local trading companies to actively targeting end customers in China[7]. - The company is leveraging the high traffic of online shopping platforms in China, which are becoming important shopping channels for local and overseas customers[9]. - The company’s trade business is expected to expand across various regions in China through the online platform[10]. - The company has identified a decrease in tourist numbers from China and is reallocating resources to enhance its cross-border e-commerce operations[7]. - The management believes that now is an opportune time to enter the Chinese market through cross-border online transactions[9]. - The company aims to expand its sales channels and penetrate the Chinese market through a new online sales distribution platform[13]. Financial Performance and Revenue - The cross-border trade business segment, focusing on nutritional and health products, recorded segment revenue of approximately HKD 294.3 million for the year ended December 31, 2019, representing a 120.5% increase compared to the previous year[19]. - The financing lease business segment generated segment revenue of approximately HKD 5.2 million, an increase of 25.8% year-on-year, attributed to successful strategies in the medical equipment financing lease market in China[21]. - The cost of sales increased by 115.9% to approximately HKD 281.7 million, driven by the increase in revenue, while gross profit rose by 148.2% to approximately HKD 17.9 million, with a gross margin improvement from 5.2% to 6.0%[22]. - Administrative and other expenses increased by 26.6% to approximately HKD 27.6 million, primarily due to increased employee costs and provisions for receivables[24]. - The company recorded a net loss of approximately HKD 18.7 million for the reporting period, a decrease from a net loss of approximately HKD 22.0 million in 2018, mainly due to increased revenue and gross profit[26]. - As of December 31, 2019, the company held cash and bank balances totaling approximately HKD 43.9 million, down from HKD 72.3 million as of December 31, 2018[27]. - The current ratio improved from 1.3 times as of December 31, 2018, to 1.5 times as of December 31, 2019[27]. - As of December 31, 2019, the company's debt ratio was 40.9%, down from 46.8% in 2018, primarily due to an increase in trade and other receivables exceeding the growth of convertible bonds and promissory notes[31]. - The company issued convertible bonds totaling HKD 39 million with a 5% annual interest rate, convertible into 195 million shares at an initial conversion price of HKD 0.2[29]. - The company reported capital expenditures of approximately HKD 354,000 for the acquisition of properties, plants, and equipment for the year ended December 31, 2019, compared to HKD 2.4 million in 2018[33]. Corporate Governance and Compliance - The board composition included several independent non-executive directors with extensive experience in finance and management[90]. - The company has adopted a share option scheme to reward eligible participants contributing to its operations and profitability since October 2011[101]. - The company has established a nomination committee responsible for reviewing the composition of the board and ensuring independence from management[127]. - The company has adopted corporate governance practices in line with the Corporate Governance Code and will continue to review these practices regularly[123]. - The company has established an effective risk management and internal control system, with no significant risks identified in the 2019 risk assessment[149]. - The internal control system is designed in accordance with the COSO framework, ensuring operational effectiveness, reliable financial reporting, and compliance with applicable laws[151]. - The board reviews the effectiveness of the risk management and internal control systems annually, concluding that they are adequate and effective[154]. - The company has established appropriate insurance coverage for its directors and senior officers against legal claims[128]. Environmental Responsibility - The company reported a total greenhouse gas emissions of 27,883 kg CO2 equivalent for the year 2019, with direct emissions accounting for 43% and indirect emissions for 57%[177]. - The annual emission intensity was recorded at 37.5 kg CO2 equivalent per square meter, covering a total area of 744.53 square meters[177]. - The company generated a total of 57,996 kg of pollutants, with nitrogen oxides contributing 91%, sulfur oxides 1%, and suspended particles 8%[175]. - The company emphasizes environmental protection by implementing principles of "saving," "recycling," and "reusing" in its daily operations[173]. - The company encourages employees to adopt green practices, such as double-sided printing and using electronic communication to reduce paper waste[173]. - The company has established multiple recycling bins in the office to collect waste paper, posters, and envelopes[173]. - The company regularly inspects and maintains its vehicles to reduce emissions and fuel waste[173]. - The company has not reported any significant violations of environmental laws or regulations during the year, nor faced any major fines or non-monetary sanctions[178]. Employee Relations and Workforce - The company employed approximately 17 staff as of December 31, 2019, an increase from 12 staff in 2018[40]. - The gender distribution of employees was 65% male and 35% female in 2019, compared to 67% male and 33% female in 2018[186]. - The company reported zero work-related fatalities and zero lost workdays due to injuries in both 2019 and 2018[190]. - The company has implemented various policies to ensure employee health and safety, including daily temperature checks and health status reporting[192]. - The company adheres to local labor laws, ensuring fair compensation and benefits for employees[193]. - The group emphasizes effective communication with employees to enhance employment relations[194]. - The company provides regular training programs for employees to enhance their skills and knowledge[191]. Risk Management and Strategic Planning - The group has established a robust risk management framework to address investment risks, ensuring thorough analysis before approving investment projects[56]. - The management is committed to maintaining sufficient cash and cash equivalents to mitigate liquidity risks and support operational funding[53]. - The group is continuously identifying and assessing operational risks to implement targeted risk mitigation measures[54]. - The group is actively seeking opportunities to diversify its product and trade business, including partnerships with distributors and suppliers of skincare, body care, cosmetics, and perfumes[59]. - The group is focusing on enhancing its financing leasing business in the medical equipment sector to capitalize on emerging opportunities[58]. - The group anticipates a significant increase in demand for medical equipment due to COVID-19 and the aging population in China, particularly focusing on Shandong and Henan provinces[58]. Shareholder Engagement and Communication - The company has set up a communication channel for shareholders to engage with the board and stay informed about business developments[163]. - The company aims to balance stakeholder interests through constructive communication and has actively engaged with various stakeholders to understand their expectations[167].
正乾金融控股(01152) - 2019 - 中期财报
2019-09-03 04:10
Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 53,050,000, a decrease of 24.3% compared to HKD 70,106,000 in the same period of 2018[7] - Gross profit increased to HKD 4,430,000, up 109.8% from HKD 2,117,000 year-on-year[7] - The company reported a loss before tax of HKD 11,178,000, slightly higher than the loss of HKD 10,944,000 in the previous year[7] - Total comprehensive loss for the period was HKD 10,043,000, compared to HKD 11,949,000 in the same period last year[7] - Basic and diluted loss per share was HKD 1.18, an improvement from HKD 1.31 in the previous year[7] - The company reported a loss of HKD (12,899) thousand for the period, compared to a loss of HKD (7,412) thousand in the previous year, indicating a worsening of 74.5% in financial performance[11] - The cumulative loss increased to HKD (138,164) thousand as of June 30, 2019, compared to HKD (117,406) thousand at the beginning of the year, reflecting a rise of 17.6% in accumulated losses[11] - The group reported a loss attributable to owners of the company of HKD 11,621,000 for the six months ended June 30, 2019, compared to a loss of HKD 12,899,000 in the same period of 2018, showing a slight improvement[61] Assets and Liabilities - Non-current assets as of June 30, 2019, totaled HKD 60,169,000, an increase from HKD 54,317,000 at the end of 2018[9] - Current assets increased to HKD 130,673,000 from HKD 106,194,000 at the end of 2018, driven by higher trade and other receivables[9] - The company’s net current assets improved to HKD 57,336,000, compared to HKD 25,238,000 at the end of 2018[9] - Total liabilities decreased to HKD 64,071,000 from HKD 67,502,000 at the end of 2018, indicating improved financial stability[9] - Total assets increased from HKD 160,511,000 to HKD 163,912,000 after the remeasurement[27] - Total liabilities rose from HKD 93,009,000 to HKD 96,438,000 following the recognition of lease liabilities[27] - The total assets as of June 30, 2019, amounted to HKD 190,842,000, up from HKD 160,511,000 as of December 31, 2018, indicating a growth of 18.9%[53] - The total liabilities increased to HKD 126,771,000 as of June 30, 2019, compared to HKD 93,009,000 at the end of 2018, representing a rise of 36.5%[53] Cash Flow - For the six months ended June 30, 2019, the net cash used in operating activities was HKD (60,684) thousand, compared to HKD (39,539) thousand for the same period in 2018, representing an increase of 53.5% in cash outflow[13] - The net cash used in investing activities was HKD (1,470) thousand, up from HKD (323) thousand in 2018, indicating a significant increase in investment expenditures[13] - The net cash from financing activities was HKD 28,612 thousand, compared to HKD 11,667 thousand in 2018, reflecting a growth of 144.5% in financing inflows[13] - As of June 30, 2019, cash and cash equivalents decreased to HKD 41,486 thousand from HKD 62,134 thousand at the beginning of the year, a decline of 33.2%[13] - The total reserves as of June 30, 2019, were HKD 76,124 thousand, down from HKD 81,034 thousand at the beginning of the year, a decrease of 6.9%[11] Financing Activities - The company issued convertible bonds amounting to HKD 6,640 thousand during the period, contributing to the overall financing activities[11] - The company issued convertible bonds with a face value of HKD 39,000,000 on June 24, 2019, with a conversion price of HKD 0.2 per share[77] - The estimated interest expense for the convertible bonds was calculated at an effective interest rate of 11.49%[78] - The group issued convertible bonds with a total principal amount of HKD 39,000,000 at an interest rate of 5% for a term of three years, with net proceeds of approximately HKD 38.7 million[98] Business Strategy and Market Focus - The company is focusing on expanding its market presence and enhancing its product offerings in the upcoming periods[8] - The company continues to focus on expanding its financing leasing services and nutritional food products as part of its core business strategy[17] - The company plans to raise at least HKD 60,000,000 through a fundraising activity in the coming months and aims to raise at least HKD 40,000,000 through equity or debt financing in the last quarter of 2019[93] - The company intends to focus on the medical equipment financing leasing market in densely populated provinces such as Shandong and Henan, targeting grassroots and secondary public hospitals[91] - The group aims to capture potential growth driven by the increasing medical needs due to the aging population in China[91] - The group is expanding its online shopping platforms in China to leverage the growing e-commerce market, which is expected to enhance profit margins for trade operations[94] - The company aims to diversify and expand its product portfolio by exploring business cooperation opportunities with distributors and suppliers in skincare, body care, cosmetics, and perfumes[110] Compliance and Governance - The company has complied with the applicable code provisions of the Corporate Governance Code as of June 30, 2019, with some deviations addressed[122] - The company has adopted a code of conduct for directors regarding securities trading, which complies with the standards set forth in the listing rules[123] - All directors confirmed compliance with the code of conduct for the six months ending June 30, 2019[123] - The audit committee reviewed the unaudited condensed consolidated interim financial statements for the six months ending June 30, 2019[124] Employee and Operational Information - The group employs approximately 33 staff members in Hong Kong and China, including three executive directors and one non-executive director[105]
正乾金融控股(01152) - 2018 - 年度财报
2019-04-17 08:45
Financial Performance - For the fiscal year ended December 31, 2018, the group recorded total revenue of approximately HKD 137,647,000, an increase of 78.4% compared to HKD 77,150,000 in the previous year[10]. - The nutrition food products segment generated revenue of approximately HKD 133,487,000, a significant increase of 525.4% from HKD 21,344,000 in the previous year[10]. - The metal trading segment did not record any revenue for the fiscal year, representing a 100% decrease from HKD 49,789,000 in the previous year[10]. - The financing leasing segment reported revenue of approximately HKD 4,160,000, a decrease of 30.9% compared to HKD 6,017,000 in the previous year[10]. - The financing leasing segment recorded a profit of approximately HKD 1,158,000 for the year ended December 31, 2018, a decline of 77.6% compared to HKD 5,175,000 in the previous year[12]. - The nutrition food products segment achieved a profit of approximately HKD 2,637,000, an increase of 673.3% from HKD 341,000 in the previous year[11]. - The group reported a total loss for the year ending December 31, 2018, with detailed financial statements available on pages 44 to 122 of the annual report[57]. Asset and Liability Management - Total assets as of December 31, 2018, amounted to approximately HKD 160,511,000, funded by internal resources of about HKD 67,502,000 and liabilities of approximately HKD 93,009,000[15]. - The current ratio decreased from 2.6 times as of December 31, 2017, to 1.3 times as of December 31, 2018, primarily due to a decrease in short-term financing leasing receivables of about HKD 28,000,000[17]. - The debt ratio increased to 46.8% as of December 31, 2018, compared to 36.9% as of December 31, 2017, due to a reduction in borrowings of approximately HKD 50,000,000 and a decrease in loans from the ultimate holding company of about HKD 65,000,000[17]. - The group has no significant contingent liabilities as of December 31, 2018[16]. Strategic Outlook - The group anticipates potential growth in the metal trading segment due to supportive government policies in China[11]. - The group expresses a cautiously optimistic outlook for business prospects amid geopolitical risks and economic challenges in 2019[7]. - The company anticipates challenges and opportunities in the economic outlook for Hong Kong and mainland China due to geopolitical risks and trade policies, which may impact consumer and investment sentiment[40]. Corporate Governance - The board consists of executive and independent non-executive directors, with specific terms of service and remuneration outlined[73][78]. - The board of directors has the authority to determine director remuneration, subject to annual approval by shareholders at the company's annual general meeting[79]. - The company has adopted a set of corporate governance practices in compliance with the Corporate Governance Code, aiming to enhance transparency and accountability[101]. - The independent non-executive directors have confirmed their independence in accordance with the Corporate Governance Code, ensuring unbiased oversight[102]. - The board is responsible for setting the company's goals, overall strategy, and policies, ensuring effective management and control of operations[103]. Risk Management - The group aims to adopt a more cautious approach in asset and risk management to safeguard overall asset quality[8]. - The group adopted a more cautious approach by setting stricter credit requirements for financing leasing clients to safeguard overall asset quality[12]. - The company has established a risk management and internal control system that complies with the corporate governance code, with no significant risks identified during the 2018 risk assessment[130]. - The internal control system is designed based on the COSO framework, ensuring operational effectiveness and compliance with applicable laws and regulations[131]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report outlines the company's commitment to sustainable development and corporate social responsibility for the year 2018[148]. - The company adheres to environmental protection laws and regulations, generating minimal waste and emissions from its operations[157]. - The group emphasizes environmental protection by implementing principles of "conservation," "recycling," and "reuse" in daily operations[158]. - The group actively participates in community service activities, including charity events to support underprivileged groups[170]. Employee Management - The company employs approximately 27 staff members as of December 31, 2018, including two executive directors and three independent non-executive directors[23]. - Employee performance and operational results are considered in regular salary reviews to maintain competitive compensation[162]. - The group provides various paid leave options and benefits such as medical insurance and study allowances to support employee development[162]. Audit and Compliance - The audit committee held three meetings during the year ended December 31, 2018, reviewing interim and annual results and ensuring compliance with appropriate accounting principles[121]. - The external auditor provided audit services costing HKD 800,000 and non-audit services totaling HKD 399,000 for the year ended December 31, 2018[141]. - The auditor assessed the design, implementation, and operational effectiveness of the internal control systems related to credit monitoring, debt collection, and expected credit loss estimation[187].