Financial Performance - For the year ended December 31, 2022, the finance lease interest income was approximately RMB 3.1 million, a decrease from RMB 17.8 million in 2021, primarily due to a reduction in new finance lease contracts and a reallocation of resources to micro-lending business[9]. - Revenue for the year ended December 31, 2022, decreased by approximately RMB 14.3 million or about 13% to approximately RMB 99.6 million, primarily due to the impact of COVID-19 and the slowdown of the Chinese economy[45]. - Profit attributable to the owners of the company for the year ended December 31, 2022, was approximately RMB 24.1 million, compared to RMB 30.6 million for the year ended December 31, 2021[64]. - Other income increased by approximately RMB 7.5 million or about 69% to approximately RMB 18.3 million for the year ended December 31, 2022, primarily due to increased dividend income from financial assets and recovery of bad debts[31]. - Cash and cash equivalents as of December 31, 2022, were approximately RMB 58.3 million, down from approximately RMB 100.2 million as of December 31, 2021[66]. - Operating funds (current assets minus current liabilities) as of December 31, 2022, were approximately RMB 185.6 million, compared to RMB 236.8 million as of December 31, 2021[66]. - Interest income from microloans for the year ended December 31, 2022, was approximately RMB 94.8 million, an increase from RMB 74.1 million for the year ended December 31, 2021[73]. - Other loan interest income for the year ended December 31, 2022, was approximately RMB 0.3 million, down from RMB 1.8 million for the year ended December 31, 2021[73]. - Financial costs decreased from approximately RMB 24.9 million to RMB 19.1 million, a reduction of about RMB 5.8 million or 23% due to repayment of bank and other borrowings[77]. - As of December 31, 2022, the group's bank borrowings due within one year were approximately RMB 100.0 million, slightly up from RMB 99.2 million in 2021, while borrowings due after one year decreased to zero[84]. - The group's receivables increased to approximately RMB 613.4 million from 594.7 million, primarily due to an increase in small loan receivables[86]. - The asset-liability ratio as of December 31, 2022, was approximately 18.0%, a slight decrease from 18.3% in 2021[85]. Business Operations - The group's main businesses include providing finance leasing, factoring, and financing advisory services in China, as well as micro-lending and related loan intermediary services[5]. - The revenue sources of the group include finance lease interest income, finance lease advisory service income, and other financing advisory service income, among others[8]. - The company adjusted its operational strategy in response to the economic environment and COVID-19, leading to a significant decline in leasing and factoring business revenue[44]. - The company focused on second mortgage products in the Shenzhen market for its micro-lending business, adapting its strategy based on changes in relevant policies[44]. - The company plans to provide flexible financing services to potential clients of various sizes across different industries[44]. - The company plans to focus on the microloan business in the future[74]. - The company has engaged five consultants with extensive industry knowledge to provide advisory services related to micro-lending and financing leasing[35]. Corporate Governance - The company has not purchased, sold, or redeemed any of its listed securities during the year and up to the report date[11]. - The company received independence confirmations from all independent non-executive directors as per the listing rules, affirming their independence[15]. - The company has established service contracts with all directors and supervisors, with a maximum term of three years[17]. - As of the report date, there were no directors or their associates involved in determining their own remuneration[16]. - The company has not disclosed any new product or technology developments in the current report[19]. - There is no mention of market expansion or mergers and acquisitions in the current report[19]. - The company has not provided specific future outlook or performance guidance in the current report[19]. - The company has not received any disclosures regarding significant shareholdings from individuals other than directors or senior executives[29]. Environmental Impact - The company has implemented measures to reduce greenhouse gas emissions, primarily from electricity consumption and company vehicle usage[108]. - The total greenhouse gas emissions increased to 145,321 kg in 2022 from 72,082 kg in 2021, representing a 101% increase[132]. - Scope 2 emissions from purchased electricity rose significantly to 133,737 kg in 2022, compared to 61,600 kg in 2021, marking a 117% increase[132]. - The greenhouse gas emissions intensity increased to 1,459 kg per million revenue in 2022, up from 633 kg in 2021, indicating a 131% rise[132]. - Nitrogen oxides emissions increased to 2,842 grams in 2022 from 2,564 grams in 2021, a rise of 11%[132]. - The company aims to gradually increase the proportion of new energy vehicles used as company cars to reduce greenhouse gas emissions in the long term[116]. - The company has implemented energy-saving measures, including the use of eco-friendly materials and regular maintenance of electrical appliances[114]. - The company promotes environmental protection by reducing energy and paper consumption and encouraging the reuse of office supplies[113]. - The company complies with various environmental laws and regulations, including the Environmental Protection Law and the Air Pollution Prevention and Control Law[133]. - The company's electricity consumption increased to 217,106 kWh in 2022 from 98,764 kWh in 2021, representing a growth of approximately 119%[156]. - The electricity consumption intensity was 2,180 kWh per million revenue in 2022, up from 867 kWh per million revenue in 2021, indicating a significant increase in energy efficiency challenges[156]. Employee Relations - The employee turnover rate is approximately 28%, reflecting the company's efforts to maintain an acceptable level of employee retention[142]. - The workforce consists of 83 full-time employees, with a gender distribution of 39 males (47%) and 44 females (53%) as of December 31, 2022[140][163]. - The company has implemented a policy to protect employee labor rights and established a complaint system for reporting concerns related to labor rights violations[150]. - The company aims to provide a safe and healthy work environment, promoting a work-life balance through recreational activities[143]. - Average training hours for male employees is 15 hours with a participation rate of 69%, while female employees average 13 hours with an 80% participation rate[171]. Compliance and Risk Management - The company has established internal controls and compliance procedures to ensure frontline employees adhere to all relevant laws and regulations in financial services[153]. - The company actively monitors legal and regulatory changes to mitigate risks associated with compliance costs and reputational damage[160]. - The company has implemented internal safety and health policies in accordance with relevant laws and regulations[170]. - The company has established a comprehensive reporting and investigation mechanism for anti-corruption, with immediate termination of employment for employees accepting benefits from clients or suppliers[196]. - The company has implemented strict measures to prevent and detect money laundering and terrorist financing, including reporting suspicious transactions to relevant government departments[197]. - The company has complied with anti-bribery, anti-money laundering, and anti-corruption laws and regulations throughout the year[197]. - The company prioritizes the protection of intellectual property rights, ensuring only authorized software is installed[194]. - The company has obtained all necessary licenses and permits for its business operations, ensuring compliance with legal regulations[190].

Dividend Proposal - The board of directors proposed a final dividend of HKD 0.03 per share for the year ended December 31, 2022, consistent with the previous year[4] - The final dividend proposal is subject to approval at the upcoming annual general meeting[4] - The expected date for the dividend payment is on or before July 25, 2023[4]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告 的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承 擔任何責任。 Wealthy Way Group Limited 富 道 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：3848） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 公 告 富道集團有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然提呈本公司及其附 屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度之綜合業績，連 同截至二零二一年十二月三十一日止年度之比較數字如下： 綜合全面收入表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 人民幣千元 人民幣千元 收益 5 99,588 113,871 其他收入 5 18,314 10,764 僱員福利開支 (22,116) (22,659) ...

Revenue and Income - For the six months ended June 30, 2022, the group's total revenue decreased by approximately RMB 6.4 million or 11.5% to approximately RMB 49.1 million compared to RMB 55.5 million for the same period in 2021[17] - Revenue for the six months ended June 30, 2022, was RMB 49,154,000, a decrease of 11.8% from RMB 55,499,000 in the same period of 2021[87] - Other income for the same period was RMB 8,152,000, down from RMB 9,217,000, reflecting a decline of 11.5%[87] - Profit before tax decreased to RMB 20,089,000, down 44.9% from RMB 36,421,000 in the previous year[87] - Net profit for the period was RMB 16,312,000, a decrease of 39.9% compared to RMB 27,132,000 in the prior year[87] - Basic earnings per share for the period was RMB 10.44, down from RMB 12.63, representing a decline of 17.4%[87] - The company reported an expected credit loss provision of RMB 10,241,000, compared to a reversal of RMB 10,644,000 in the previous year[87] - Total comprehensive income for the period, after tax, was RMB 7,505,000, down from RMB 23,561,000, a decline of 68.2%[87] Financial Performance - The financing lease interest income significantly decreased to approximately RMB 2.0 million, down from RMB 6.8 million, representing a decline of approximately 70.6%[17] - The interest income from factoring business dropped by approximately RMB 2.9 million or 96.7% to approximately RMB 0.1 million, compared to RMB 3.0 million for the same period in 2021[17] - Loan brokerage service revenue decreased by approximately RMB 8.3 million or 89.2% to approximately RMB 1.0 million, down from RMB 9.3 million in the same period last year[18] - Employee benefits expenses decreased by approximately RMB 3.2 million or about 26.9% to RMB 8.7 million for the six months ended June 30, 2022, compared to RMB 11.9 million for the same period in 2021, primarily due to workforce streamlining[23] - Financial costs decreased from approximately RMB 14.5 million for the six months ended June 30, 2021, to RMB 9.4 million for the same period in 2022, due to early repayment of bank loans after recovering amounts from a defaulting airline customer[26] - Profit attributable to shareholders decreased from approximately RMB 19.6 million to RMB 16.3 million, primarily due to an increase in expected loss provisions for loans and receivables[27] Assets and Liabilities - As of June 30, 2022, cash and cash equivalents were approximately RMB 116.7 million, up from RMB 100.2 million as of December 31, 2021[31] - Loans and receivables increased to RMB 628.3 million as of June 30, 2022, from approximately RMB 594.7 million as of December 31, 2021, due to an increase in receivables from factoring loans[33] - The debt-to-equity ratio as of June 30, 2022, was 18.3%, unchanged from December 31, 2021[32] - Total assets amounted to RMB 484,488,000, an increase of 18.6% compared to RMB 408,373,000 as of December 31, 2021[90] - Total liabilities increased to RMB 184,169,000, up from RMB 171,574,000, indicating a rise of 7.3%[90] - The net asset value as of June 30, 2022, was RMB 548,561,000, a slight increase from RMB 541,057,000, reflecting a growth of 1%[93] - The company reported a total equity of RMB 548,561,000, consistent with the previous year's figure, indicating stability in shareholder equity[93] Operational Strategy and Management - The company adjusted its operational strategy in response to the economic environment and COVID-19 impacts, focusing on optimizing resource allocation to improve operational efficiency[13] - The group plans to maintain its market share in the Shenzhen real estate second mortgage market by adjusting its small loan business strategy according to policy changes[13] - The group continues to provide flexible financing services to potential clients across various industries and scales[13] - The company aims to enhance risk management measures in response to factors affecting its operations[13] - The company will continue to adopt a prudent approach in the second half of 2022, effectively controlling costs and developing business with high-quality clients to adapt to the challenging environment[62] - The company aims to enhance its internal information technology to improve risk management capabilities and implement more effective cost-saving measures[62] - The company plans to strengthen its financing capabilities and expand partnerships to enhance its comprehensive service capabilities[62] Employee and Corporate Governance - The company employed 70 full-time employees as of June 30, 2022, down from 78 employees a year earlier[35] - The company has complied with all provisions of the corporate governance code during the six months ended June 30, 2022[63] - The company did not recommend any interim dividend for the six months ended June 30, 2022[28] Stock Options and Incentives - The company has a stock option plan approved on June 19, 2017, allowing for the issuance of a total of 15,552,300 shares[45] - The company has a strategy to incentivize employees and partners through stock options, aligning their interests with the company's performance[45] - The stock option plan is valid for 10 years from the date of adoption, allowing flexibility in granting options to eligible participants[45] - The company continues to monitor and manage its stock option plan to ensure it meets regulatory requirements and aligns with corporate goals[50] Segment Performance - The company operates in three main segments: financing leasing and factoring services, microloans and loan brokerage services, and securities trading and brokerage services, each requiring different marketing strategies[118] - For the six months ended June 30, 2022, external revenue from financing leasing and factoring services was RMB 1,974,000, while external revenue from microloans and loan brokerage services was RMB 44,725,000, and from securities trading and brokerage services was RMB 2,455,000, totaling RMB 49,154,000[120] - The segment performance for financing leasing and factoring services was RMB 7,333,000, for microloans and loan brokerage services was RMB 19,615,000, and for securities trading and brokerage services was RMB 1,295,000, resulting in a total segment performance of RMB 28,243,000[120]

Business Strategy and Operations - The company completed the acquisition of the remaining shares of Shenzhen Haosen Microfinance Co., Ltd., making it a wholly-owned subsidiary, which strengthens its microfinance business[11]. - The company adjusted its business strategy in response to the economic environment and COVID-19, terminating cooperation with Daxinhua Airlines and repaying related bank loans to reduce financial costs[16]. - The company plans to focus its resources on providing flexible financing lease services to small and micro enterprises in the Greater Bay Area, particularly in the manufacturing sector[12]. - The company successfully launched a product related to second mortgage loans in the Shenzhen real estate market and plans to gradually exit the unsecured credit loan market[16]. - The company aims to optimize internal resource allocation and improve operational efficiency in response to the ongoing economic uncertainties[12]. - The company will adjust its business strategies related to microfinance in accordance with new real estate regulatory policies to increase its market share in the second mortgage loan sector in Shenzhen[16]. - The company plans to focus on small loans and financing lease businesses in the future[23]. Financial Performance - In 2021, the company's revenue was primarily derived from financing lease interest income (RMB 178 million), factoring service income (RMB 45 million), loan-related service income (RMB 122 million), loan interest income (RMB 741 million), advisory service income (RMB 9 million), margin financing interest income (RMB 10 million), and commission and brokerage income (RMB 15 million)[16]. - The company's revenue decreased from approximately RMB 176.1 million for the year ended December 31, 2020, to approximately RMB 113.9 million for the year ended December 31, 2021, representing a decline of about 35%[21]. - Interest income from financing leases and factoring for the year ended December 31, 2021, was approximately RMB 17.8 million and RMB 4.5 million, respectively, down from RMB 36.6 million and RMB 23.4 million in 2020, due to a reduction in new financing lease and factoring contracts[21]. - The company generated approximately RMB 12.2 million from loan-related services for the year ended December 31, 2021, a decrease from RMB 35.2 million in 2020, primarily due to a shift from unsecured credit loans to real estate second mortgage loans[21]. - The company recorded a net profit attributable to owners of approximately RMB 30.6 million for the year ended December 31, 2021, compared to a loss of approximately RMB 111.6 million for the year ended December 31, 2020[31]. - The company's cash and cash equivalents as of December 31, 2021, were approximately RMB 100.2 million, down from RMB 118.6 million as of December 31, 2020[33]. - The company's total equity as of December 31, 2021, was approximately RMB 541.1 million, a decrease from RMB 673.9 million as of December 31, 2020[33]. - The company's bank borrowings due within one year decreased to approximately RMB 99.2 million as of December 31, 2021, from RMB 420.3 million as of December 31, 2020[36]. - The company's debt-to-equity ratio as of December 31, 2021, was approximately 18.3%, down from 75.0% as of December 31, 2020, due to early repayment of bank loans[36]. - Other income decreased from approximately RMB 13.4 million for the year ended December 31, 2020, to approximately RMB 10.8 million for the year ended December 31, 2021, a decline of about 20%[24]. - As of December 31, 2021, the group had no contracted but unrecognized capital commitments, compared to RMB 770 million in 2020[38]. - As of December 31, 2021, the company's distributable reserves were approximately RMB 150.4 million, a decrease from RMB 166.6 million as of December 31, 2020[142]. Human Resources and Governance - The group employed 71 full-time employees as of December 31, 2021, down from 139 in 2020, with employee benefits expenses amounting to approximately RMB 227 million, a decrease from RMB 319 million in 2020[39]. - The company emphasizes the importance of good corporate governance for sustainable development and aims to enhance its governance mechanisms[13]. - The company will continue to adopt a prudent operating approach to mitigate risks and build healthy partnerships with clients and business partners[13]. - The company has a strong emphasis on financial and risk management strategies to enhance operational efficiency[69]. - The board of directors includes members with diverse backgrounds in finance, law, and management, contributing to comprehensive governance[76]. - The company is committed to implementing good corporate governance and has established procedures in accordance with the corporate governance code principles outlined in the listing rules[83]. - The company has a robust training and professional development program for directors and senior management, ensuring compliance with legal and regulatory requirements[83]. - The company has received annual written confirmations from independent non-executive directors regarding their independence, in line with listing rules[92]. - The company has a clear policy for reviewing and monitoring compliance with corporate governance codes and practices[83]. - The board is responsible for preparing annual budgets and financial statements, as well as making recommendations regarding profit distribution and capital adjustments[84]. - The company emphasizes board diversity as a key element for achieving strategic goals and sustainable development[111]. - The board's diversity policy considers various factors including gender, age, cultural background, and professional experience[112]. - The company is actively seeking suitable candidates to enhance gender diversity on the board, following the resignation of a female director in 2021[115]. Risk Management - The group has implemented a risk management system to mitigate operational risks, with a risk control committee overseeing risk management, business development, and accounting departments[40]. - The group is adopting a more cautious approach in selecting high-quality clients due to recent fluctuations in the Chinese economy and financial markets[41]. - The group plans to enhance its information technology systems to collect more accurate data and improve the review of clients' financial and operational conditions[41]. - The company plans to enhance risk management capabilities and focus on developing business with high-quality clients in a challenging environment[59]. - The company aims to improve internal information systems to enhance risk management and control costs effectively[59]. - The company is committed to maintaining effective risk management and internal control systems to minimize operational risks[122]. Stock Options and Incentives - The company has a share option scheme approved on June 19, 2017, aimed at incentivizing employees and other qualified participants[170]. - The maximum number of shares that may be granted under the share option scheme is capped at 10% of the issued share capital, which translates to 15,523,000 shares based on the latest approved issued share capital of 155,523,000 shares[176]. - The exercise price of shares under the share option scheme will not be less than the higher of the closing price on the specific offer date or the average closing price over the preceding five consecutive trading days[175]. - The company has a structured stock option plan that incentivizes employees and aligns their interests with shareholders[178]. - The stock option plan is valid for ten years from the date of adoption, allowing for flexibility in granting options to eligible participants[178]. - The company continues to monitor the effectiveness of its stock option plan as part of its overall compensation strategy[178]. - The company plans to continue its stock option program to incentivize key personnel and align their interests with shareholders[183]. - The total number of options exercised in 2021 was 952,000, reflecting a strategic move to enhance employee retention[183]. - The company anticipates further expansion in its stock option plans to attract and retain talent in the competitive market[183]. - The company is committed to transparency in its stock option plans and will provide regular updates to stakeholders[183]. Shareholder Relations - The company has established a shareholder communication policy to ensure effective communication with shareholders and the investment community[124]. - The board will continue to review the dividend policy to balance shareholder interests with prudent capital management[116]. - The company is focused on sustainable growth and will consider various factors before declaring dividends, including financial performance and future development plans[116]. - The board proposed a final dividend of HKD 0.03 per share for the year ended December 31, 2021, compared to no dividend in 2020, pending shareholder approval[134]. - The company has maintained sufficient public float in accordance with listing rules as of the report date[200]. - The company confirmed that related party transactions are ongoing and exempt from compliance with all disclosure requirements under Chapter 14A of the Listing Rules[160]. Corporate Structure and Leadership - Ms. Chen Shujun served as an executive director until her resignation on July 30, 2021, and has over 20 years of experience in Hong Kong's banking and finance industry[64]. - Mr. Xie Weiquan was appointed as an executive director on January 2, 2020, and has extensive experience in financing, investment, and asset management[69]. - Mr. Xie has been involved in financial and risk management since joining the group in 2013, focusing on leasing and service operations[69]. - Mr. Xia Dejiang, an independent non-executive director since June 19, 2017, has over 27 years of financial accounting and auditing experience[71]. - Mr. Gan Weimin, appointed as an independent non-executive director on January 2, 2020, has over 15 years of corporate finance experience[76]. - Mr. Shi Lei joined the group on September 1, 2014, as the general manager of leasing and has over 15 years of experience in China's financing leasing industry[77]. - The company emphasizes the importance of independent judgment in strategic, performance, resource, and code of conduct matters through its independent directors[75]. - The management team is focused on overall business development and risk management within the leasing sector[78]. - The company has established appropriate insurance arrangements to indemnify directors and senior officers against liabilities incurred in the performance of their duties[197]. Audit and Compliance - The external auditor, Deloitte, provided audit services for the year, with fees amounting to RMB 783,000[117]. - The company confirmed that its financial statements were prepared in accordance with all statutory requirements and applicable accounting standards[121]. - The Audit Committee held two meetings in March and August 2021 to review financial reporting and internal controls[102]. - The Remuneration Committee also conducted two meetings during the year to review current director remuneration policies[103]. - The Nomination Committee met twice to assess the board's structure and make recommendations for director appointments[104]. - The company adheres to the standard code of conduct for securities trading by directors, confirming compliance during the reporting period[107]. - Director remuneration is subject to shareholder approval at the annual general meeting[108].

Revenue and Profitability - The group's revenue for the six months ended June 30, 2021, decreased by approximately RMB 44.5 million or 44.5% to about RMB 55.5 million compared to the same period in 2020[15]. - Revenue for the six months ended June 30, 2021, was RMB 55,499 thousand, a decrease of 44.5% compared to RMB 100,047 thousand for the same period in 2020[87]. - The company reported a total revenue of RMB 503,250,000 for the first half of 2021, compared to RMB 637,824,000 in the same period of 2020, reflecting a decrease of approximately 21%[98]. - The company reported a total comprehensive income of RMB 23,561 thousand for the period, compared to RMB 17,936 thousand in the previous year, an increase of 31.0%[87]. - Net profit for the period was RMB 27,132 thousand, representing a significant increase of 119.8% from RMB 12,346 thousand in the previous year[87]. - Profit attributable to shareholders increased from approximately RMB 10.6 million to RMB 19.6 million for the six months ended June 30, 2021, due to savings from financial costs and employee benefits[24]. - Earnings per share attributable to shareholders was RMB 12.63, up from RMB 6.83, reflecting an increase of 85.5%[87]. Financial Performance and Position - Total assets as of June 30, 2021, amounted to RMB 1,077,463 thousand, a decrease from RMB 1,368,142 thousand as of December 31, 2020[91]. - The company's total equity decreased significantly, reflecting the overall decline in asset values and revenue generation capabilities[124][127]. - The company reported a total equity of RMB 794,341,000 as of June 30, 2021, compared to RMB 817,451,000 at the end of June 2020, reflecting a decrease of approximately 3%[101]. - Current liabilities decreased to RMB 204,754 thousand from RMB 530,956 thousand, indicating a reduction of 61.4%[91]. - The company's cash and cash equivalents were RMB 48,606 thousand, down from RMB 118,633 thousand, a decline of 59.0%[91]. - The company incurred a fair value loss of RMB 3,590,000 during the reporting period, which impacted the overall financial performance[98]. Operational Changes and Strategies - The company adjusted its operational strategy in response to the economic environment and the impact of COVID-19, focusing on small and medium-sized enterprises in Shenzhen and Dongguan[9]. - The company plans to adjust its small loan business strategy based on new regulatory policies in the real estate sector to expand its market share in the second mortgage segment[9]. - The company will focus on expanding its financing leasing and small loan services to improve revenue streams in the upcoming periods[135]. - The company aims to strengthen its risk management capabilities and control costs effectively while developing existing business advantages[62]. - The company plans to enhance its information technology systems to collect more accurate data for better financial and operational reviews of clients[35]. Employee and Operational Costs - Employee benefit expenses decreased by approximately RMB 5.9 million or about 33.1% to RMB 11.9 million for the six months ended June 30, 2021, mainly due to the streamlining of human resources[20]. - Other operating expenses amounted to approximately RMB 10.9 million, accounting for about 19.6% of total revenue, compared to 11.9% for the six months ended June 30, 2020[21]. - The company employed 78 full-time employees as of June 30, 2021, down from 140 as of June 30, 2020, with employee benefit expenses reaching approximately RMB 11.9 million[31]. Stock Options and Incentives - A stock option plan was approved in June 2017, allowing the company to grant options to employees and other contributors, with a total of 15,552,300 shares potentially issuable under the plan[40]. - The company continues to incentivize employees through stock options, reflecting a commitment to employee engagement and retention[49]. - The company has adopted a share incentive plan on November 6, 2019, aimed at rewarding employees for their contributions and encouraging retention[57]. - The company has granted stock options to 13 consultants with extensive experience in micro-lending, aimed at maintaining business relationships and encouraging contributions[55]. Receivables and Credit Management - The total net value of loans and receivables as of June 30, 2021, was RMB 722,183,000, a decrease from RMB 1,006,543,000 as of December 31, 2020, indicating a decline of approximately 28.2%[155]. - The company’s expected credit loss provision for loans and receivables was RMB 540,746,000 as of June 30, 2021, compared to RMB 1,186,007,000 as of December 31, 2020, indicating a reduction of approximately 54.4%[155]. - The company has established a factoring agreement providing approximately RMB 99,000,000 in cash factoring financing without recourse[161]. - The expected credit loss provision for small loans decreased to RMB 22,287 thousand as of June 30, 2021, compared to RMB 43,699 thousand as of December 31, 2020, indicating improved credit quality[175]. Market and Regulatory Environment - The company has identified digital transformation as a key focus to respond to the complex economic environment[62]. - The company will continue to adapt its business strategies based on market conditions and customer situations, primarily focusing on clients in China[62]. - The company plans to increase its financing capacity and expand partnerships to improve its comprehensive service capabilities[62]. Shareholder Information - The major shareholder, Fudeng Investment Limited, holds 101,974,000 shares, representing 65.40% of the issued share capital[81]. - Director Lu Weihao holds a controlling interest in Fudeng Investment Limited, which owns the same number of shares[81].

Financial Performance - The company recorded a loss for the first time since its listing due to significant negative impacts from the COVID-19 pandemic, particularly affecting its major client, Daxinhua Airlines[14]. - Revenue decreased from approximately RMB 196.6 million in 2019 to approximately RMB 176.1 million in 2020, a decline of about 10.4% due to COVID-19 impact and reduced loan agreements[24]. - The company recorded a loss attributable to owners of approximately RMB 106.8 million in 2020, compared to a profit of RMB 41.4 million in 2019[34]. - Cash and cash equivalents increased to approximately RMB 118.6 million in 2020 from RMB 42.7 million in 2019[36]. - The debt-to-equity ratio improved to approximately 75.0% in 2020 from 91.5% in 2019 due to early repayment of bank borrowings[39]. - Other income increased by approximately RMB 3.7 million or 38.5% to RMB 13.4 million in 2020, mainly from dividend income[27]. - The board did not recommend a final dividend for the year ended December 31, 2020, compared to 5 HK cents in 2019[35]. - As of December 31, 2020, accounts receivable and loans amounted to approximately RMB 1,006.5 million, a decrease from RMB 1,524.9 million in 2019, primarily due to an additional expected credit loss provision of approximately RMB 167.7 million for a defaulting airline customer, Daxinhua Airlines[40]. - The total expected credit loss provision for Daxinhua Airlines as of December 31, 2020, was approximately RMB 183.2 million, compared to RMB 15.5 million in 2019[40]. - The company did not recommend a final dividend for the year ended December 31, 2020, compared to a dividend of HKD 0.05 per share in 2019[153]. Business Strategy - The company plans to focus on providing flexible financing lease services to small and micro enterprises in the Greater Bay Area, particularly in manufacturing cities like Shenzhen, Dongguan, Guangzhou, and Foshan[19]. - The company will adjust its small loan business focus from credit loans to mortgage loans, targeting property owners in Shenzhen and surrounding areas[14]. - The acquisition of the remaining shares of Shenzhen Haosen Microfinance Co., Ltd. will make it a wholly-owned subsidiary, enhancing the company's microfinance business development[14]. - The company aims to strengthen resource allocation and leverage synergies among subsidiaries to maintain steady growth amid a complex economic environment[15]. - The company will explore the secondary mortgage loan business in Shenzhen's real estate sector, aligning with the new Civil Code and mortgage system in China[19]. - The company aims to expand its customer base by providing flexible financing services to potential clients across various industries[19]. - In 2021, the group will focus on financing lease business for SMEs in the Greater Bay Area and mortgage business for real estate, while maintaining a prudent approach to cost control[73]. - The group aims to enhance its risk management capabilities and develop business with high-quality clients in potential growth industries[73]. - The company plans to improve internal information systems to enhance risk management capabilities and implement effective cost control measures[73]. - The main customer base is concentrated in China, and the company will remain flexible in adjusting its business strategies based on customer conditions[73]. Corporate Governance - The company emphasizes the importance of good corporate governance for sustainable development and will continue to optimize governance practices[15]. - The company is committed to implementing good corporate governance and has established procedures in line with the corporate governance code principles as per the listing rules[102]. - The board has fulfilled its corporate governance responsibilities, including reviewing and monitoring the training and continuous professional development of directors and senior management[102]. - The independent non-executive directors provide independent judgment on the company's strategy, performance, resources, and code of conduct[91][92]. - The company has a diverse board with members possessing expertise in finance, law, and corporate governance, contributing to effective decision-making[91][92][99]. - The board of directors consists of 3 executive directors, including the chairman and CEO, and 3 independent non-executive directors, ensuring a balanced governance structure[106]. - The company has established a code of conduct and compliance manual applicable to employees and directors[102]. - The board regularly reviews the company's compliance with the corporate governance code and discloses this in the corporate governance report[102]. - The company has established a remuneration committee and a nomination committee to enhance corporate governance practices[115]. - The company plans to continue reviewing the board composition periodically to ensure effective governance[106]. Risk Management - The company has implemented a risk management system to mitigate operational risks, including a top-level risk control committee and various departments for risk assessment and management[48]. - The company has a dedicated risk management department to oversee and manage potential risks[94]. - The board confirmed the effectiveness of the risk management and internal control systems, ensuring minimal operational risks[139]. Employee Compensation - Employee benefits expenses increased by approximately RMB 9.2 million or 40.7% to RMB 31.9 million in 2020, primarily due to stock options granted and increased commissions[28]. - Employee benefit expenses, including director remuneration, were approximately RMB 31.9 million for the year ended December 31, 2020, up from RMB 22.6 million in 2019, primarily due to commissions aimed at stimulating growth in the securities trading business[48]. - The company has adopted a share option plan allowing for the issuance of up to 15,552,300 shares to reward employees and align their interests with the company[53]. - A total of 10,200,000 stock options were granted on January 22, 2020, with an exercise price of HKD 6.12, valid until January 21, 2023[55]. - As of December 31, 2020, no stock options had been exercised from the 10,200,000 granted[55]. - The company adopted a share incentive plan on November 6, 2019, effective for 10 years until November 6, 2029[64]. - The stock options granted on April 24, 2019, included 10,075,000 options with an exercise price of HKD 7.00, valid until April 23, 2022[54]. - As of December 31, 2020, there were 2,872,000 unexercised stock options remaining[60]. - The share incentive plan aims to reward employees for their contributions and encourage retention[64]. - The company has not issued any shares or granted any rewards under the share incentive plan since its adoption[65]. Shareholder Information - The company has a significant shareholder, Fudeng Investment Limited, holding 101,974,000 shares, representing 65.57% of the total issued share capital[181]. - Mr. Lu Weihao, the beneficial owner of Fudeng Investment Limited, is also noted to have a direct interest in the same number of shares, 101,974,000, equating to 65.57%[181]. - China Export-Import Bank holds 10,000,000 shares, which accounts for approximately 6.43% of the company's issued share capital[181]. - Mr. Xie Weiquan holds 360,000 shares, representing 0.23% of the total issued share capital[176]. - The company has confirmed compliance with the non-competition agreement as of December 31, 2020, with no violations reported[192]. - The company has established a non-competition agreement with its controlling shareholders to prevent any competition with its business operations[187]. - The company has confirmed that all related party transactions are exempt from the disclosure requirements under the Listing Rules[183]. - The company encourages shareholders to attend and participate in annual general meetings, with relevant information provided at least 30 days prior to the meeting[144].

Revenue and Income Growth - The group's revenue increased by approximately 16.8% from RMB 85.6 million for the six months ended June 30, 2019, to RMB 100.0 million for the six months ended June 30, 2020[13]. - Financing lease interest income rose by approximately 50.3%, from RMB 20.7 million for the six months ended June 30, 2019, to RMB 31.1 million for the six months ended June 30, 2020[14]. - The group generated RMB 16.9 million in loan intermediary service income from the acquisition of Shenzhen Haosen Microfinance, compared to RMB 15.9 million for the same period in 2019[14]. - Other income increased by approximately 60.0%, from RMB 4.9 million for the six months ended June 30, 2019, to RMB 7.9 million for the six months ended June 30, 2020[16]. - The group recorded RMB 9.6 million in financing lease-related factoring income, up from RMB 8.4 million for the same period in 2019[14]. - Profit attributable to shareholders increased by approximately RMB 1.4 million or about 14.7% to RMB 10.6 million, driven by increased loan intermediary income related to Shenzhen Haosen's micro-loan business[23]. - The net profit for the period was RMB 12,346,000, slightly up from RMB 12,338,000 in the previous year[77]. - The total profit before tax for the group was RMB 20,339,000, compared to RMB 13,106,000 for the same period in 2019, indicating a growth of approximately 55.5%[114]. Financial Position and Equity - As of June 30, 2020, cash and cash equivalents amounted to approximately RMB 99.9 million, up from RMB 42.7 million as of December 31, 2019[25]. - The group's total equity increased to approximately RMB 817.5 million from RMB 794.3 million as of December 31, 2019[25]. - The debt-to-equity ratio improved to approximately 86.9% from 91.5% as of December 31, 2019, due to the acquisition of Shenzhen Haosen and Huitong Group and repayment of bank borrowings[28]. - The company’s total equity as of June 30, 2020, was RMB 637,824,000, an increase from RMB 617,443,000 as of December 31, 2019, showing a growth of approximately 3.5%[93]. - The company’s total assets as of June 30, 2020, amounted to RMB 1,710,639,000, while total liabilities were RMB 916,298,000, resulting in a debt-to-asset ratio of approximately 53.6%[135]. Operational Performance and Expenses - Employee benefits expenses increased by approximately RMB 7.9 million or about 80.9% to RMB 17.7 million for the six months ended June 30, 2020, primarily due to increased manpower in Shenzhen Haosen and the acquisition of Huitong Group[17]. - Other operating expenses decreased by RMB 6.7 million to approximately RMB 11.9 million, accounting for about 11.9% of total revenue, down from 22.3% for the six months ended June 30, 2019[21]. - Financial costs decreased by approximately 11.9% to RMB 32.0 million, mainly due to a reduction in bank borrowings[22]. - The company incurred financial costs of RMB 31,970,000 for the six months ended June 30, 2020, down from RMB 36,308,000 in the previous year, indicating a reduction of approximately 12.3%[140]. Risk Management and Strategic Focus - The management is closely monitoring the impact of the COVID-19 pandemic on existing and potential clients to mitigate business risks[9]. - The group expects to maintain stable business performance through the synergies gained from the acquisition of subsidiaries[8]. - The group aims to focus on financing lease services, factoring, and microloans for long-term growth[15]. - The company aims to enhance risk management capabilities and explore investment and acquisition opportunities that align with its business[53]. Share Option and Incentive Plans - The company adopted a share option plan on June 19, 2017, allowing for the issuance of a total of 15,552,300 shares under the plan[39]. - The company’s share option plan allows for the issuance of options to employees, consultants, and other qualified participants, aligning their interests with the company[39]. - The company adopted a share incentive plan on November 6, 2019, which will remain effective for 10 years until November 6, 2029[50]. - The company has not issued any shares or granted any rewards under the share incentive plan since its adoption[51]. Credit Quality and Receivables - The expected credit loss provision for loans and receivables increased from RMB 72,102,000 as of December 31, 2019, to RMB 83,744,000 as of June 30, 2020, reflecting a rise of approximately 16.5%[159]. - The company reported a significant increase in overdue amounts for small loans, with RMB 46,744,000 overdue by more than 90 days as of June 30, 2020, compared to RMB 44,030,000 as of December 31, 2019[174]. - The aging analysis of factoring loans showed that as of June 30, 2020, RMB 76,906,000 was overdue by 0 to 30 days, compared to RMB 29,509,000 as of December 31, 2019, indicating a significant increase in early-stage delinquencies[169]. - The expected credit loss provision for accounts receivable was assessed at RMB 543,000 as of June 30, 2020, compared to RMB 2,534,000 as of December 31, 2019, indicating a significant decrease of 78.6%[200].

Revenue and Financial Performance - The group reported total revenue of RMB 42.5 million from financing lease interest income, RMB 18.0 million from factoring services, RMB 43.5 million from loan brokerage services, RMB 89.2 million from loan interest income, and RMB 2.3 million from consulting services[15]. - Revenue increased by approximately 136.8% from RMB 83.0 million for the year ended December 31, 2018, to RMB 196.6 million for the year ended December 31, 2019, primarily due to new income sources from the acquisition of Shenzhen Haosen[22]. - The group recorded a profit attributable to owners of the company of approximately RMB 41.4 million for the year ended December 31, 2019, an increase of approximately 79.8% from RMB 23.0 million in 2018[31]. - Financing lease interest income was approximately RMB 42.5 million for the year ended December 31, 2019, a slight decrease from RMB 43.5 million in 2018[23]. - Other income grew by approximately 33.6% to RMB 9.7 million for the year ended December 31, 2019, due to changes in VAT tax rates leading to additional refunds[25]. - As of December 31, 2019, cash and cash equivalents were approximately RMB 42.7 million, down from RMB 61.2 million in 2018[33]. Acquisitions and Business Expansion - The acquisition of Shenzhen Haosen Microfinance Co., Ltd. contributed to an increase in revenue from new loan brokerage and interest income, enhancing the group's sales channels and resource allocation efficiency[16]. - The group expects the acquisition of Huitong Financial Group Limited to create synergies and broaden revenue sources, allowing for expansion in the Hong Kong financial market[16]. - The group expanded its business to include loan brokerage services, contributing approximately RMB 43.5 million in revenue from the acquisition of Shenzhen Haosen[23]. Operating Expenses and Financial Costs - Employee benefit expenses increased by approximately 93.8% to RMB 22.6 million for the year ended December 31, 2019, due to increased manpower following the acquisitions of Shenzhen Haosen and Huitong Group[26]. - Other operating expenses amounted to approximately RMB 32.3 million for the year ended December 31, 2019, representing about 16.4% of total revenue, up from 9.5% in 2018[27]. - Financial costs increased by approximately 86.6% to RMB 61.9 million for the year ended December 31, 2019, primarily due to loans generated from Shenzhen Haosen[28]. Risk Management and Governance - The company has implemented a risk management system to mitigate operational risks, with a focus on high-quality customer selection due to recent economic fluctuations in China[40]. - The risk management framework includes a top-level risk control committee and departments for risk management, business development, and accounting, ensuring thorough evaluation of potential business opportunities[40]. - The risk control committee holds absolute authority to approve each project, ensuring a robust decision-making process[40]. - The company confirmed that it has established an effective risk management and internal control system to minimize operational risks[128]. - The company has implemented sufficient internal control systems to ensure the effectiveness of financial, operational, and compliance monitoring functions[128]. Share Incentive and Stock Options - A total of 15,552,300 shares may be issued under the stock option plan approved in June 2017, aimed at incentivizing employees and partners[44]. - The company reported a total of 4,320,000 shares granted under the share incentive plan, with 10,075,000 shares exercised and 11,523,000 shares available for future grants[52]. - The stock options granted under the plan are subject to specific terms and conditions, ensuring alignment of interests between the company and its contributors[44]. - The share incentive plan will remain effective for 10 years, expiring on November 6, 2029, unless terminated or amended[52]. - The maximum number of shares that may be issued under the stock option plan is capped at 10% of the total issued share capital at the time of listing, equating to 15,523,000 shares[188]. Corporate Governance - The company has implemented corporate governance procedures in accordance with the Stock Exchange's Listing Rules Appendix 14, ensuring compliance and monitoring of policies[91]. - The board of directors held a total of 10 regular meetings during the year, with all members actively participating[102]. - The company has a commitment to independent non-executive directors, ensuring at least three are present on the board, maintaining a balance of power[99]. - The company has established a code of conduct and compliance manual applicable to employees and directors, promoting ethical behavior[91]. - The independent non-executive directors have confirmed their independence in accordance with the guidelines set out in the Listing Rules[99]. Future Outlook and Strategic Focus - The company anticipates ongoing challenges in the financial services industry in China and Hong Kong due to the economic impact of COVID-19[53]. - The company aims to enhance its risk management capabilities and develop business with high-quality clients in a challenging environment[56]. - The company is investing in new technology development, allocating $E million towards R&D initiatives aimed at enhancing service offerings[78]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the G sector[78]. - The company emphasizes the importance of digital transformation and resource integration among its business units to navigate the complex economic environment[56].

Revenue and Profitability - For the six months ended June 30, 2019, the group's revenue increased by approximately 138.4% to RMB 856 million from RMB 359 million for the same period in 2018[16]. - Profit attributable to shareholders rose from approximately RMB 8.6 million to approximately RMB 9.3 million for the same period, driven by loan intermediary income and interest from the acquisition of Shenzhen Haosen[24]. - Revenue for the six months ended June 30, 2019, was RMB 85,637,000, an increase of 138% compared to RMB 35,895,000 for the same period in 2018[76]. - Total comprehensive income for the period was RMB 13,098,000, up from RMB 8,914,000 in 2018, marking a 47% increase[76]. - The company’s total liabilities decreased by RMB 210,201,000 due to loan repayments[92]. Expenses and Financial Costs - The group reported an increase in employee benefits expenses by approximately 113.0% to RMB 98 million for the six months ended June 30, 2019, due to the expansion of the workforce following the acquisition of Shenzhen Haosen[18]. - Financial costs increased from approximately RMB 15.8 million for the six months ended June 30, 2018, to approximately RMB 36.3 million for the six months ended June 30, 2019, due to newly raised borrowings and bills payable[20]. - Other operating expenses amounted to approximately RMB 191 million for the six months ended June 30, 2019, representing about 22.3% of total revenue, compared to 10.4% for the same period in 2018[19]. Acquisitions and Business Expansion - The acquisition of Shenzhen Haosen Microfinance Co., Ltd. contributed to an increase in revenue from loan intermediary services and loan interest income[12]. - The board anticipates that the acquisition of Huitong Financial Group Limited, completed on July 5, 2019, will enhance revenue sources and allow for expansion in the Hong Kong financial market[12]. - The company completed the acquisition of 100% equity in Huitong Financial Group on July 5, 2019, which is expected to diversify its business portfolio and expand operations in the Hong Kong financial market[48]. Risk Management - The group adopted a cautious approach to risk control when signing new contracts with potential clients due to the negative impact of the Chinese financial market[11]. - The group has implemented a risk management system to mitigate operational risks, including a top-level risk control committee and various departments for risk assessment[32]. - The company plans to continue strengthening risk management capabilities and developing business with high-quality clients in a challenging environment[53]. Cash Flow and Liquidity - Cash and cash equivalents decreased to approximately RMB 39.8 million as of June 30, 2019, down from approximately RMB 61.2 million as of December 31, 2018[26]. - The net cash used in operating activities was RMB 64,962,000, primarily due to changes in working capital[92]. - The company incurred rental expenses of RMB 285 thousand to a related company, an increase from RMB 249 thousand in the previous year[161]. Shareholder Information and Corporate Governance - The major shareholder, Fudeng Investment Limited, holds 101,974,000 shares, representing 65.57% of the issued share capital[70]. - The company has adhered to all provisions of the corporate governance code as of June 30, 2019[56]. - The audit committee consists of three independent non-executive directors and reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2019[58]. Stock Options and Employee Incentives - The company has a stock option plan approved in June 2017, allowing for the issuance of up to 14,400,000 shares to incentivize employees and partners[40]. - The company granted a total of 4,320,000 stock options on July 4, 2018, with an exercise price of HKD 6.02, valid until July 4, 2019[41]. - As of June 30, 2019, there were 3,232,000 unexercised stock options remaining from the total of 11,163,000 options granted[45]. Financial Position and Assets - Total assets as of June 30, 2019, were RMB 1,282,770,000, compared to RMB 1,068,454,000 as of December 31, 2018, indicating a growth of 20%[81]. - The total amount of loans and receivables with no credit impairment was RMB 1,488,683 thousand, up from RMB 1,465,953 thousand as of December 31, 2018[148]. - The expected credit loss provision for loans and receivables was RMB 89,597,000 as of June 30, 2019, compared to RMB 78,452,000 as of December 31, 2018, indicating an increase of approximately 14.4%[137].