Financial Performance - Ziyuanyuan Holdings Group Limited reported a significant increase in revenue, achieving a total of HKD 150 million, representing a growth of 25% year-over-year[1]. - The company has reported a net profit of HKD 30 million, reflecting a 10% increase from the previous year[1]. - The Group's revenue doubled compared to 2020, achieving a breakthrough of over RMB100 million in revenue for the first time[30]. - For the year ended 31 December 2021, the Group's revenue increased by approximately RMB60.9 million or approximately 104.1% to approximately RMB119.4 million compared to RMB58.5 million in 2020[54]. - Revenue from maternal and child postpartum care industry services was RMB51.4 million for the year ended 31 December 2021, up from approximately RMB2.2 million in 2020[54]. - The increase in revenue for the year was mainly attributed to the growth in postpartum care services and new income from trading medical equipment[54]. Market Expansion and Strategy - Future outlook indicates a projected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion strategies[1]. - Ziyuanyuan Holdings plans to enter two new markets in Southeast Asia by the end of the next fiscal year, targeting a market share of 15% in these regions[1]. - The Group is focused on the development of finance leasing services in the medical equipment industry, particularly in the oral cavity and maternity sectors[30]. - The implementation of the three-child policy in China is expected to further stimulate the fertility rate, benefiting the maternal and child postpartum care industry[39]. - The Group aims to diversify its income by integrating resources and optimizing its industrial structure[30]. Investments and Acquisitions - The company has completed a strategic acquisition of a local tech firm for HKD 25 million, expected to enhance its technological capabilities[1]. - The Group's acquisition of Guangzhou Sheng Cheng Dunnan Enterprise Management Co., Ltd. for RMB31 million was completed in February 2021, expanding its postpartum care services[49]. - The Group acquired 54% of Wuhan Jiaenbei Health Management Co. Ltd. for RMB3.24 million, further enhancing its service offerings in postpartum care[49]. - China Development Bank Financial Leasing Co., Ltd. agreed to grant a revolving sale and leaseback facility to the Group up to RMB200 million for the operation of finance lease business[35]. - China Construction Bank Corporation provided the Group with a total strategic credit of RMB500 million to support the trading business of medical devices, equipment, and consumables[36]. Research and Development - The company is investing HKD 10 million in research and development for new technologies aimed at enhancing user experience[1]. Sustainability Initiatives - The company is focusing on sustainability initiatives, allocating 5% of its annual budget towards environmental and social governance projects[1]. Financial Position and Liquidity - As of December 31, 2021, bank balances and cash were approximately RMB33.5 million, down from RMB84.8 million in 2020, indicating a significant decrease in liquidity[71]. - The Group's total equity as of December 31, 2021, was approximately RMB304.3 million, compared to RMB303.3 million in 2020, showing a slight increase[71]. - The gearing ratio increased to approximately 38.6% as of December 31, 2021, from 24.7% in 2020, attributed to increased bank and other borrowings for business expansion[71]. - As of December 31, 2021, the Group's bank and other borrowings amounted to approximately RMB191.2 million, up from RMB99.7 million in 2020, reflecting a significant increase in leverage[71]. Employee and Management Overview - As of December 31, 2021, the Group had 241 employees, an increase from 102 employees in 2020, with total staff costs of approximately RMB 36.9 million for the year, up from RMB 15.8 million in 2020[92]. - The Group's remuneration policy rewards employees and Directors based on individual performance and the Group's performance, with regular reviews of remuneration packages[92]. - The management team has a robust background in both corporate finance and operational management, positioning the company for future growth[101]. Corporate Governance - The Company adopted and complied with the Corporate Governance Code during the Reporting Period, ensuring proper regulation of business activities[121]. - The Board emphasizes transparency and accountability in the Company's operations, setting appropriate policies for governance[120]. - The Company has implemented corporate governance practices appropriate to its business conduct and growth[121]. - The Board's responsibilities include reviewing and monitoring the Group's policies on compliance with legal and regulatory requirements[131]. Risk Management - The Group's risk management policies are formulated to enhance post-drawdown performance and mitigate potential risks[106]. - The internal control reports submitted by the internal audit department were reviewed by the Audit Committee[200].

Revenue Performance - Total revenue for the three months ended September 30, 2021, was RMB 26,872,000, representing a 91.5% increase compared to RMB 14,028,000 for the same period in 2020[20] - Total revenue for the nine months ended September 30, 2021, was RMB 79,315,000, an increase of 80.8% compared to RMB 43,875,000 for the same period in 2020[20] - The company experienced an increase in income from trading of medical equipment and consumables, reaching RMB 2,006,000 for the three months ended September 30, 2021, compared to RMB 0 in the previous year[20] - Revenue for the period includes finance leasing income, interest income on loan receivables, postpartum care services, and trading of medical equipment, with significant contributions from these categories[54] - Total income from trading of medical equipment and consumables reached RMB 2,006 for the three months ended September 30, 2021, with a total of RMB 4,786 for the nine months ended September 30, 2021[55] - The increase in revenue was mainly attributed to new postpartum care services income of RMB36.9 million and new income from trading of medical equipment and consumables of RMB4.8 million[108] Profit and Income - Profit before income tax for the three months ended September 30, 2021, was RMB 397,000, a decrease of 91.6% from RMB 4,702,000 in the previous year[22] - The company reported a profit and total comprehensive income of RMB 378,000 for the three months ended September 30, 2021, down 91.9% from RMB 4,692,000 in the same period of 2020[23] - Earnings per share attributable to owners of the company for the three months ended September 30, 2021, was RMB 0.003, a decrease from RMB 1.165 in the prior year[26] - Profit and total comprehensive income for the period was RMB 3,877 million, a decrease from RMB 9,899 million in the same period last year[39] - Profit and total comprehensive income attributable to owners of the Company decreased from approximately RMB9.9 million for the nine months ended September 30, 2020 to approximately RMB3.9 million for the nine months ended September 30, 2021[125] Costs and Expenses - Staff costs for the three months ended September 30, 2021, were RMB 8,965,000, an increase of 157.5% from RMB 3,477,000 in the same period last year[21] - Total staff costs for the nine months ended September 30, 2021 amounted to RMB 26,862,000, an increase from RMB 10,763,000 for the same period in 2020[7] - Other operating expenses rose from approximately RMB10.9 million for the nine months ended September 30, 2020 to approximately RMB42.8 million for the same period in 2021, with significant contributions from the newly established postpartum care centres[115] - The increase in staff costs and other operating costs offset the increase in revenue and other gains, leading to a decrease in profit[125] Assets and Liabilities - As of 30 September 2021, total assets amounted to RMB 302,033 million, an increase from RMB 300,271 million as of 1 January 2021[39] - The company reported a total comprehensive income of RMB 4,424 million for the period, reflecting a significant change in financial performance[39] - The company is required to appropriate 10% of its profit after taxation to statutory reserves before any distribution of dividends[43] Dividends - Dividends to shareholders for the period were RMB (8,333) million, compared to RMB (10,884) million in the previous year[39] - A final dividend of HK2.5 cents per share was declared, totaling HK$10,000,000 (equivalent to RMB 8,333,000) for the nine months ended 30 September 2021[71] - The Group does not recommend the payment of an interim dividend for the nine months ended September 30, 2021[71] Corporate Governance - The Company has complied with the provisions of the Corporate Governance Code, except for a deviation from code provision A.2.1[164] - The company maintains that high standards of corporate governance are crucial for its sustained growth[167] - The Board believes that the dual role of Mr. Zhang Junshen as Chairman and CEO does not impair the balance of power and authority[169] - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2021, and confirmed compliance with applicable accounting standards[175] Market Outlook and Strategy - The postpartum care industry in China is projected to reach approximately RMB29 billion by 2024, indicating strong growth potential[96] - The Group anticipates benefiting from the robust outlook of postpartum care centers due to the implementation of the three-child policy in May 2021[96] - The Group aims to expand its postpartum care business in Southern and Central China through acquisitions and flagship center openings[103] - The Group intends to explore acquisition and partnership opportunities to diversify its business and strengthen its revenue base[106] Shareholding Structure - Mr. Zhang Junshen and Mr. Zhang Junwei each hold 300,000,000 shares, representing a 75% shareholding in the company[135] - The interests of Mr. Zhang Junshen consist of 219,801,980 shares held by Hero Global and 80,198,020 shares as a party acting in concert with Mr. Zhang Junwei[139] - The interests of Mr. Zhang Junwei consist of 80,198,020 shares held by Icon Global and 219,801,980 shares as a party acting in concert with Mr. Zhang Junshen[139] - As of September 30, 2021, the controlling shareholders, Mr. Zhang Junshen and Mr. Zhang Junwei, collectively hold 75% of the issued share capital of the Company through Hero Global and Icon Global[151]

Financial Performance - Ziyuanyuan Holdings Group Limited reported a significant increase in revenue for the six months ended June 30, 2021, with total revenue reaching approximately HKD 50 million, representing a growth of 25% compared to the same period in the previous year[28]. - The company achieved a net profit of approximately HKD 10 million for the first half of 2021, which is a 15% increase year-on-year, indicating improved operational efficiency[28]. - Total revenue for the six months ended June 30, 2021, was RMB 52,443,000, representing a 75.6% increase from RMB 29,847,000 in the same period of 2020[29]. - Profit and total comprehensive income for the period attributable to owners of the Company was RMB 3,865,000, compared to RMB 5,238,000 in the same period of 2020, indicating a decrease of 26.2%[29]. - Earnings per share for the period was RMB 0.97, down from RMB 1.31 in the same period of 2020, reflecting a decline of 26%[29]. - Future guidance indicates an expected revenue growth of 15% for the second half of 2021, driven by increased demand and new product launches[28]. - The Group's profit before income tax was RMB 4,264,000, down from RMB 4,722,000 in the previous year, reflecting a decline of 9.7%[60]. User Engagement and Market Expansion - User data showed a growth in active users by 30%, reaching a total of 200,000 active users as of June 30, 2021, reflecting the company's successful marketing strategies[28]. - Ziyuanyuan Holdings Group Limited plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share by the end of 2022[28]. - The company has implemented new strategies to improve customer engagement, aiming for a 10% increase in customer retention rates by the end of 2021[28]. Investment and Development - The company is investing in new product development, with an allocation of HKD 5 million towards research and development of innovative technologies in the next fiscal year[28]. - The Group's acquisition of subsidiaries contributed RMB2,630,000 to property, plant, and equipment during the six months ended June 30, 2021[90]. - The Group acquired 54% equity of Wuhan Jiaenbei Health Management Co. Ltd. for RMB3,240,000, with the transfer completed in January 2021[191]. Financial Health and Liquidity - The company reported a cash flow from operations of approximately HKD 12 million, indicating strong liquidity and financial health[28]. - The net cash used in operating activities for the six months ended June 30, 2021, was RMB (33,754,000), compared to RMB 39,404,000 generated in the same period of 2020, indicating a significant decrease in cash flow from operations[43]. - The Company reported finance leasing income of RMB 25,678,000 for the six months ended June 30, 2021, down from RMB 28,874,000 in the same period of 2020, a decrease of 7.6%[29]. Assets and Liabilities - Non-current assets increased to RMB 160,760,000 as of June 30, 2021, from RMB 132,625,000 as of December 31, 2020, marking a growth of 21.1%[31]. - Current assets rose to RMB 321,630,000 as of June 30, 2021, compared to RMB 306,986,000 as of December 31, 2020, an increase of 4.8%[31]. - Total liabilities increased to RMB 327,418,000 as of June 30, 2021, from RMB 312,475,000 as of December 31, 2020, reflecting a rise of 4.8%[33]. - The Company’s bank borrowings increased to RMB 117,672,000 as of June 30, 2021, from RMB 99,730,000 as of December 31, 2020, representing an increase of 17.9%[33]. Impairment and Credit Management - The Group recorded impairment losses of receivables amounting to RMB 3,539,000 for the six months ended June 30, 2021[60]. - The total impairment loss allowance for finance lease receivables as of June 30, 2021, is RMB 19,892,000, which includes RMB 10,829,000 for non-credit-impaired and RMB 9,063,000 for credit-impaired[155]. - The Group's total expected credit loss (ECL) for loan receivables was assessed, with movements in 12-month and lifetime ECL being monitored closely[162]. Shareholder Returns - A final dividend of HK$10,000,000 (equivalent to RMB 8,333,000) was declared for the six months ended June 30, 2021, down from HK$12,000,000 (equivalent to RMB 10,884,000) in the same period of 2020[82]. - The Company did not recommend the payment of an interim dividend for the six months ended June 30, 2021, compared to no interim dividend in the same period of 2020[83]. Taxation and Deferred Tax - The current tax expense for the six months ended June 30, 2021, was RMB 708,000, a decrease of 68.1% from RMB 2,208,000 in the same period of 2020[75]. - Deferred tax assets as of June 30, 2021, were RMB 5,245,000, compared to RMB 5,070,000 as of December 31, 2020, indicating a slight increase of about 3%[166]. - The Group recognized a total of RMB 2,175,000 in deferred tax liabilities as of June 30, 2021, down from RMB 3,924,000 as of December 31, 2020, representing a decrease of approximately 44%[166].

Financial Performance - Total revenue for the three months ended March 31, 2021, was RMB 22,553,000, representing an increase of 50.5% compared to RMB 14,998,000 for the same period in 2020[16] - Profit attributable to owners of the Company for the period was RMB 3,011,000, a decrease of 16.8% from RMB 3,620,000 in the same period of 2020[16] - The Group's total comprehensive income for the period was RMB 3,071,000, compared to RMB 3,620,000 in the same period of 2020[16] - Revenue for the three months ended March 31, 2021, was RMB 22,553,000, an increase of 50.7% compared to RMB 14,998,000 for the same period in 2020[46] - The Group's profit for the period has been arrived at after charging various expenses, including RMB 1,228,000 for depreciation of property, plant, and equipment[67] - For the three months ended 31 March 2021, the profit and total comprehensive income attributable to owners of the Company was approximately RMB3.0 million, a decrease from RMB3.6 million for the same period in 2020, primarily due to increased staff and operating costs[112] Revenue Streams - Income from postpartum care services was RMB 9,400,000, which was a new revenue stream introduced in 2021[16] - New postpartum care services contributed RMB 9.4 million to the revenue, offsetting a decrease in finance leasing income from approximately RMB 15.0 million to approximately RMB 13.2 million[100] - Other gains for the three months ended March 31, 2021, totaled RMB 1,338,000, compared to RMB 8,000 in 2020[49] Expenses and Costs - Finance lease income decreased to RMB 12,863,000, down 11.3% from RMB 14,502,000 in the previous year[16] - Interest income from loan receivables was RMB 290,000, down 41.6% from RMB 496,000 in the same period last year[16] - Total staff costs for the period were RMB 8,054,000, an increase of 138.5% from RMB 3,371,000 in the same period of 2020[66] - Other operating expenses rose from approximately RMB 2.9 million to approximately RMB 10.5 million, mainly due to increased depreciation from a new head office and expenses related to the new maternal and child postpartum care business[107] Assets and Liabilities - The Group's total assets as of March 31, 2021, were RMB 309,637,000, reflecting growth from RMB 300,271,000 at the beginning of the year[32] - The Group's retained profits increased to RMB 56,149,000 as of March 31, 2021, compared to RMB 53,138,000 at the beginning of the year[32] - The total impairment losses under the expected credit loss model were RMB 7,597,000, compared to RMB 3,198,000 in the same period last year[16] Corporate Governance - The Company has adopted the Corporate Governance Code and complied with its provisions, except for a deviation from code provision A.2.1[1] - The Board believes that the dual role of Mr. Zhang Junshen as both chairman and CEO does not impair the balance of power and authority within the Company[1] - The Audit Committee consists of non-executive and independent non-executive Directors, with Mr. Chan Chi Fung Leo serving as the chairman, holding the required professional qualifications[164] Market and Strategic Outlook - The market size of postpartum care centers in the PRC is projected to reach approximately RMB29 billion by 2024, indicating a positive outlook for the industry[85] - The Group aims to expand its postpartum care services in Southern and Central China, focusing on acquisitions and flagship center openings to increase market share[91] - The Group plans to target mid-end brands in tier 1 cities due to market saturation in high-end postpartum care centers[92] - The maternal and child postpartum care industry is expected to experience significant growth over the next decade due to increasing wealth and favorable government policies[89] Shareholding and Ownership - The ultimate controlling shareholders, Mr. Zhang Junshen and Mr. Zhang Junwei, collectively own 75.0% of the issued share capital of the Company[1] - The interests of Directors and the chief executive in the Shares include 300,000,000 shares held, representing approximately 75% of the shareholding[119] - As of March 31, 2021, no other directors or chief executives had interests in shares or underlying shares that required disclosure[130] Compliance and Reporting - The Group's unaudited condensed consolidated financial statements for the three months ended March 31, 2021, have been reviewed by the Audit Committee, ensuring compliance with applicable accounting standards and GEM Listing Rules[165] - The financial information in the report has not been audited, but adequate disclosures have been made according to legal requirements[165] - There were no significant events affecting the Group after March 31, 2021, up to the date of the report[1]

Company Overview - Ziyuanyuan Holdings Group Limited is incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange, which is designed for companies with higher investment risks[1]. - The company acknowledges the potential for high market volatility and lower liquidity in securities traded on GEM compared to those on the Main Board[4]. - The directors confirm that the information in the report is accurate and complete in all material respects, with no misleading or deceptive statements[4]. - The principal place of business in the PRC is located in Shenzhen, indicating the company's operational focus in mainland China[15]. Corporate Governance - The report outlines the corporate governance structure, including various committees such as the Audit Committee and Remuneration Committee[13]. - The company is committed to compliance with GEM Listing Rules and has appointed Guoyuan Capital (Hong Kong) Limited as its compliance adviser[15]. - The Company adopted and complied with the Corporate Governance Code during the reporting period, ensuring proper regulation of business activities and decision-making processes[197]. - The Board is responsible for promoting the success of the Company by providing effective leadership and ensuring transparency and accountability of operations[199]. - The Group's management is tasked with implementing corporate governance practices appropriate for the growth of the business[196]. - The Company has set appropriate policies for internal control systems and risk management systems to safeguard its operations[199]. - The Company has complied with key corporate governance principles and practices during the reporting period, with a noted deviation from code provision A.2.1[198]. Financial Performance - The annual report includes a comprehensive financial statement, detailing profit or loss and other comprehensive income, as well as financial position and cash flows[10]. - Profit attributable to owners of the Company decreased to approximately RMB13.0 million in 2020 from RMB16.9 million in 2019, primarily due to the operational disruptions caused by Covid-19[71]. - As of December 31, 2020, cash and cash equivalents increased to approximately RMB84.8 million from RMB22.3 million in 2019[72]. - The Group's working capital increased to approximately RMB179.9 million in 2020 from RMB172.6 million in 2019[72]. - The Group's total equity as of 31 December 2020 was approximately RMB303.3 million, up from RMB300.3 million in 2019[74]. - The Group's debt-to-equity ratio as of December 31, 2020, was approximately 24.7%, up from 15.8% in 2019, primarily due to increased bank borrowings for business expansion[80]. - A final dividend of HK 2.5 cents per share was recommended for the financial year 2020, reflecting the Board's appreciation for shareholder support[43]. Business Operations - The Group is primarily engaged in providing medical equipment finance leasing services and maternal and child postpartum care industry services in the PRC[21]. - The market size of postpartum care centres in the PRC is estimated to reach approximately RMB 29 billion by 2024, indicating a positive outlook for the industry[28]. - The Group aims to develop its postpartum care business in Southern and Central China, focusing on acquisitions and opening flagship postpartum care centres to increase market share[34]. - The maternal and child postpartum care industry is expected to experience rapid growth due to rising demand and favorable government policies, marking the next ten years as a golden decade for the industry[30]. - The Group has established Shenzhen Meijiaer Health Management Co., Ltd. in 2020 to focus on maternal and child postpartum care services[34]. - The Group plans to provide one-stop services for mothers and infants, including postpartum care centres, training schools, and maternal and infant e-commerce[34]. - The Group is shifting its target to mid-end brands in tier 1 cities, focusing on middle-class consumers due to intense competition in high-end postpartum care centres[35]. - The Group remains optimistic about sustaining its core business despite economic uncertainties caused by the Covid-19 pandemic[23]. - The finance leasing market in the PRC is expected to grow as the penetration of finance lease deepens, supported by policy measures for SMEs[22]. - The Covid-19 pandemic has highlighted the rigid demand for postpartum care services, as many parents prefer using postpartum care centres over hiring individual maternity matrons[29]. - The Group acquired a high-end postpartum care center and established a flagship center in Wuhan, offering services in health care, dietary nutrition, recovery, and intellectual development for newborns[54]. Staffing and Costs - Staff costs increased from RMB 13.8 million in 2019 to approximately RMB 14.6 million in 2020, attributed to increased headcount and salaries, as well as costs from new postpartum care services[58]. - Employee costs increased from approximately RMB13.8 million for the year ended 31 December 2019 to approximately RMB14.6 million for the year ended 31 December 2020, primarily due to an increase in employee numbers and salaries[61]. - The total staff cost for the year ended December 31, 2020, was approximately RMB15.8 million, an increase from RMB15.1 million in 2019[90]. - The Group had 102 employees as of December 31, 2020, compared to 56 employees in 2019, reflecting growth in operations[90]. Risk Management and Compliance - The Group aims to further strengthen its risk management capabilities as part of its strategic development[102]. - The management team is committed to compliance and risk management, which is essential for maintaining operational integrity[171]. - The Group upgraded its OA System to closely monitor customers' business operations and financial performance[102]. - Training was provided to staff to enhance knowledge in risk management and the new medical device industry[102]. Leadership and Management - The company has appointed various directors with significant experience in their respective fields, enhancing its strategic planning and management capabilities[171]. - The management team includes members with advanced degrees in finance and business management, indicating a strong educational background[169][170]. - The Group's leadership team is composed of individuals with extensive backgrounds in finance, enhancing its strategic decision-making capabilities[180]. - The appointment of independent directors like Mr. Chow and Mr. Zhang strengthens the governance structure of the Group[176]. - Mr. Zhang Junshen has approximately 10 years of overall company management experience and about 5 years in the financing leasing industry[168]. - Mr. Zhang Yong has over 5 years of experience in investments and capital market management, serving as the president of Shenzhen Futian District Economic Promotion Association since March 2020[178]. - Ms. Li Xiangying has over 20 years of experience in finance and accounting, overseeing financial management and internal audit for the Group[180]. Acquisitions and Investments - The Group acquired a 51% equity interest in Wuhan Desheng Meimei Health Management Co., Ltd. for RMB3.4 million, completed in August 2020, with performance targets set for the next three years[84]. - The Group also purchased the entire equity interest in Guangzhou Sheng Cheng Dunnan Enterprise Management Co., Ltd. for RMB31 million, with the transfer completed in February 2021[84]. - The Group injected a total of RMB 40.4 million into its existing finance leasing business in the PRC printing and logistics industries[98]. - The Group established operation centers in Beijing, Hangzhou, Chengdu, and Wuhan to strengthen its market position[98]. Financial Liabilities - An additional impairment loss of approximately RMB 3.5 million was recognized in 2020, up from RMB 2.9 million in 2019, due to the impact of Covid-19 on customer payment delays[60]. - Other operating expenses rose from approximately RMB13.3 million in 2019 to approximately RMB21.4 million in 2020, driven by increased depreciation and expenses related to new postpartum care services[65]. - Finance costs decreased from approximately RMB13.0 million in 2019 to approximately RMB8.3 million in 2020, mainly due to a reduction in imputed interest expense on interest-free deposits[66]. - The Group's finance lease receivables and loan receivables, with a total carrying value of approximately RMB25.1 million, were pledged to secure bank borrowings[79]. - The Group did not experience any significant contingent liabilities as of December 31, 2020, remaining at nil as in 2019[89]. - The Group did not have any other significant investments or material acquisitions during the year ended December 31, 2020[87].

Financial Performance - Revenue for the three months ended September 30, 2020, was RMB 14,028,000, a decrease of 14.1% compared to RMB 16,344,000 for the same period in 2019[14] - Gross profit for the three months ended September 30, 2020, was RMB 13,572,000, down 17.2% from RMB 16,344,000 in the previous year[14] - Profit before taxation for the three months ended September 30, 2020, was RMB 4,702,000, a decline of 46.6% compared to RMB 8,801,000 in the same period of 2019[14] - Profit attributable to owners of the Company for the three months ended September 30, 2020, was RMB 4,661,000, down 27.8% from RMB 6,464,000 in the previous year[14] - Earnings per share for the three months ended September 30, 2020, was 1.17 RMB cents, compared to 1.62 RMB cents for the same period in 2019, reflecting a decrease of 27.8%[14] - Total comprehensive income for the period was RMB 4,692,000, down 27.5% from RMB 6,464,000 in the previous year[14] - The company reported a profit of RMB 9,899,000 for the nine months ended September 30, 2020, compared to RMB 40,589,000 for the same period in 2019, indicating a significant decrease of about 75.7%[27] - As of September 30, 2020, the total comprehensive income for the period was RMB 9,930,000, a decrease from RMB 13,880,000 for the same period in 2019, representing a decline of approximately 28.5%[27] Cost Management - Direct operating costs for the three months ended September 30, 2020, were RMB (456,000), indicating a cost management strategy in response to revenue decline[14] - Staff costs increased to RMB (3,477,000) for the three months ended September 30, 2020, compared to RMB (2,526,000) in the same period of 2019, reflecting a rise of 37.7%[14] - Other gains and losses for the three months ended September 30, 2020, were RMB 32,000, down from RMB 65,000 in the previous year, indicating a decrease of 50.8%[14] - The Group's total staff costs for the nine months ended September 30, 2020, amounted to RMB 10,763,000, compared to RMB 10,752,000 for the same period in 2019, reflecting a slight increase[62] - Total depreciation for the nine months ended September 30, 2020, was RMB 3,437,000, compared to RMB 2,346,000 for the same period in 2019[62] Impact of Covid-19 - The financial performance was adversely affected by the Covid-19 pandemic, leading to reduced revenue due to decreased customer demand and increased expected credit loss provisions[35] - The decrease in revenue was mainly due to the outbreak of Covid-19, which led to mandatory holiday extensions and quarantine measures that temporarily hindered operations[98] - The Group's operations were temporarily hindered due to mandatory holiday extensions and quarantine measures in response to Covid-19[117] - The Group's proactive approach during the Covid-19 pandemic included various anti-epidemic measures to protect employee health and minimize operational disruptions[76] - The Group is actively monitoring the ongoing impacts of Covid-19 on its operations and financial performance, adjusting strategies as necessary[35] Taxation and Compliance - The subsidiaries in the PRC are subject to a tax rate of 25% during the reporting period[59] - The Group's current tax expense for the three months ended September 30, 2020, included a credit of RMB (500) for PRC Enterprise Income Tax, compared to an expense of RMB 3,084 in the same period of 2019[57] - The current tax expense decreased from approximately RMB 6.8 million for the nine months ended September 30, 2019, to approximately RMB 1.7 million for the same period in 2020, reflecting a decrease in net profit[116] - The Group's taxation included an income tax credit of RMB 0.5 million for the nine months ended June 30, 2020, compared to an income tax expense of RMB 6.0 million for the same period in 2019[116] Corporate Governance - The Company has complied with the provisions of the Corporate Governance Code, except for a deviation from code provision A.2.1 regarding the separation of roles of chairman and chief executive officer[155] - The Company emphasizes the importance of high standards of corporate governance for its continuous growth[155] - The Company has adopted and complied with the Corporate Governance Code where applicable[156] - The Company has established an audit committee in compliance with GEM Listing Rules, ensuring proper governance and oversight[166] - The audit committee reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2020, confirming compliance with applicable accounting standards and legal requirements[168] Business Development - The Group completed the acquisition of 51% equity interests in Wuhan Desheng Meimei Health Management Co., Ltd. in August 2020, expanding its service offerings in postpartum care[81] - The Group plans to leverage high-tech actions such as artificial intelligence and big data to build an integrated service platform for the medical industry and promote the healthy growth of domestic SMEs[83] - The Group believes that providing postpartum care services will be a good entry point into the healthcare industry and plans to explore selective acquisitions and partnerships to strengthen its revenue base[94] - The market size of postpartum care centres in the PRC is estimated to reach approximately RMB 29 billion by 2024, indicating a positive outlook for the industry[89] - The concentration of the postpartum care service industry is currently very low, indicating significant growth potential in the coming decade[93] Shareholding and Capital Structure - As of September 30, 2020, the company's issued share capital was HK$40,000,000, with 400,000,000 ordinary shares issued[122] - Mr. Zhang Junshen and Mr. Zhang Junwei each hold 300,000,000 shares, representing a 75% shareholding in the company[128] - The interests of Mr. Zhang Junshen include 219,801,980 shares held by Hero Global and 80,198,020 shares as a party acting in concert with Mr. Zhang Junwei[132] - The interests of Mr. Zhang Junwei include 80,198,020 shares held by Icon Global and 219,801,980 shares as a party acting in concert with Mr. Zhang Junshen[132] - The company has maintained its capital structure since its listing on the GEM of the Stock Exchange on July 9, 2018[122] - No changes in the capital structure have occurred since the listing[122] Dividends - A final dividend of HK$12,000,000 (equivalent to RMB 10,884,000) was declared for the year ended December 31, 2019, with no interim dividend recommended for the nine months ended September 30, 2020[66][67] - The Board proposed a final cash dividend of HK$0.03 per share for the year ended December 31, 2019, which was approved by shareholders on May 22, 2020[122] - No interim dividend was recommended for the nine months ended September 30, 2020, compared to nil for the same period in 2019[122]

Revenue and Profitability - Ziyuanyuan Holdings Group Limited reported a significant increase in revenue, achieving a total of $X million, representing a Y% growth compared to the previous period[1]. - The company reported a profit and total comprehensive income for the period of RMB 5,238,000, down from RMB 7,416,000 in the previous year, reflecting a decrease of 29.4%[35]. - Profit before taxation for the six months ended June 30, 2020, was a loss of RMB 4,722,000, compared to a profit of RMB 11,103,000 for the same period in 2019[35]. - Profit for the period attributable to owners of the Company for the six months ended June 30, 2020 was RMB 5,238,000, a decrease of 29.5% compared to RMB 7,416,000 for the same period in 2019[112]. - Basic earnings per share for the six months ended June 30, 2020, was 1.31 RMB cents, compared to 1.85 RMB cents for the same period in 2019, a decline of 29.2%[35]. User Growth and Market Expansion - The company noted an increase in user data, with active users reaching Z million, which is an increase of A% year-over-year[1]. - The management highlighted a strategic plan to expand into new markets, targeting an increase in market share by E% over the next two years[1]. - For the upcoming fiscal year, Ziyuanyuan Holdings Group Limited provided guidance indicating expected revenue growth of B% to C%, driven by new product launches and market expansion strategies[1]. Research and Development - The company is actively investing in R&D for new technologies, with a budget allocation of $D million, aiming to enhance product offerings and improve operational efficiency[1]. - Research and development costs recognized as an expense for the six months ended June 30, 2020 were RMB 688,000, a decrease of 34.5% compared to RMB 1,052,000 for the same period in 2019[106]. Financial Position and Cash Flow - Ziyuanyuan Holdings Group Limited's cash flow from operations improved by I%, providing a stronger financial position for future investments[1]. - As of June 30, 2020, total current assets amounted to RMB 302,212,000, an increase of 10.2% from RMB 274,187,000 as of December 31, 2019[37]. - The company's net assets stood at RMB 294,625,000, a slight decrease of 1.5% from RMB 300,271,000 as of December 31, 2019[39]. - For the six months ended June 30, 2020, net cash from operating activities was RMB 39,404,000, compared to a net cash used of RMB 51,518,000 in the same period of 2019[52]. Impact of Covid-19 - The outbreak of Covid-19 negatively impacted the group's financial performance, leading to a reduction in revenue due to decreased customer demand[58]. - The company incurred an increase in expected credit loss (ECL) provisions due to the worsening creditworthiness of certain customers[58]. - The company received rent concessions from a lessor as part of its response to the economic impact of Covid-19[58]. Liabilities and Borrowings - Total liabilities decreased from RMB 101,626,000 to RMB 119,427,000, indicating a rise of 17.5%[39]. - The Group's bank borrowings amounted to RMB 79,656,000, an increase from RMB 56,180,000 as of December 31, 2019, representing an increase of approximately 41.7%[184]. - The Group's fixed-rate borrowings were RMB 49,600,000, while variable-rate borrowings were RMB 30,056,000 as of June 30, 2020[184]. Compliance and Accounting Standards - The financial statements were prepared in accordance with HKAS 34, ensuring compliance with relevant provisions[31]. - The Group's financial reporting practices have been enhanced to ensure compliance with the latest accounting standards[69]. - The Group's accounting policies have been updated to align with the new definitions and amendments introduced in the HKFRSs[72]. Impairment and Credit Risk - The lifetime expected credit loss (ECL) allowance was RMB 19,729,000 as of June 30, 2020, up from RMB 12,764,000 as of December 31, 2019, indicating an increase of approximately 54.5%[122]. - The total impairment losses recognized for finance lease receivables amounted to RMB 5,577,000, while for loan receivables it was RMB 42, indicating a total of RMB 5,619,000 for the reporting period[152]. - The ECL provision for finance lease receivables as of June 30, 2020, was RMB 12,764, showing a comprehensive assessment of credit risk[164]. Dividends and Share Capital - A final dividend of HK$12,000,000 (equivalent to RMB 10,884,000) was declared for the year ended 31 December 2019, with no dividends declared for the same period in 2019[110]. - The Group's total issued and fully paid share capital remained at HK$ 100,000,000 as of June 30, 2020[189].

Financial Performance - Total revenue for the three months ended March 31, 2020, was RMB 14,998, a decrease of 14.6% compared to RMB 17,532 in the same period of 2019[13] - Profit before taxation for the period was RMB 5,095, a decrease of 13.8% from RMB 5,910 in Q1 2019[13] - Profit and total comprehensive income attributable to owners of the Company was RMB 3,620, down 10.4% from RMB 4,042 in the same period last year[13] - Basic earnings per share for the period was 0.91 RMB cents, compared to 1.01 RMB cents in Q1 2019, reflecting a decrease of 9.9%[13] - For the three months ended March 31, 2020, the profit for the period attributable to owners of the Company was RMB 3,620,000, a decrease of 10.4% compared to RMB 4,042,000 for the same period in 2019[48] - For the three months ended March 31, 2020, the Group's profit attributable to owners was approximately RMB 3.6 million, a decrease from RMB 4.0 million for the same period in 2019, representing a decline of 10%[83] Revenue and Expenses - Finance lease income decreased to RMB 14,502, down 17.3% from RMB 17,532 in Q1 2019[13] - Staff costs for the period were RMB 3,198, a reduction of 12.0% from RMB 3,634 in the previous year[13] - Other operating expenses decreased to RMB 2,855, down 17.7% from RMB 3,470 in Q1 2019[13] - Total staff costs for the period were RMB 3,371,000, a decrease of 7.2% from RMB 3,634,000 in the same period of 2019[44] - Other operating expenses decreased from approximately RMB 3.5 million for the three months ended March 31, 2019, to approximately RMB 2.9 million for the same period in 2020, attributed to reduced travel and marketing expenses[79] - Finance costs for the three months ended March 31, 2020, amounted to RMB 2,301,000, a decrease from RMB 3,406,000 in 2019[32] - Finance costs decreased from approximately RMB 3.4 million for the three months ended March 31, 2019, to approximately RMB 2.3 million for the same period in 2020, mainly due to a reduction in imputed interest expense on interest-free deposits[80] Impairment and Credit Losses - The total comprehensive income for the period reflects the impact of expected credit loss impairment, which amounted to RMB 1,565, an increase from RMB 1,030 in Q1 2019[13] - The company recognized impairment losses of RMB 1,565,000 on finance lease receivables and loan receivables for the three months ended March 31, 2020, compared to RMB 1,030,000 for the same period in 2019[37] - An additional impairment loss of approximately RMB1.6 million was recognized for the three months ended March 31, 2020, compared to approximately RMB1.0 million for the same period in 2019, primarily due to an increase in the probability of default[75] - The increase in impairment losses under the ECL model offset the decrease in staff costs and finance costs compared to the corresponding period in 2019[83] Corporate Governance and Compliance - The Company has confirmed compliance with all undertakings under the Deed of Non-competition by the controlling shareholders during the reporting period[120] - The Company has adopted the Code of Conduct regarding securities transactions by the Directors, confirming compliance for the three months ended March 31, 2020[126] - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2020, and found them compliant with applicable accounting standards and GEM Listing Rules[135] - The Company has adopted and complied with the CG Code, except for a deviation from code provision A.2.1[123] - The Audit Committee consists of experienced individuals, ensuring proper governance and oversight of the Company's operations[134] - The Company has maintained a high standard of corporate governance, which is deemed important for continuous growth[120] Strategic Initiatives and Market Outlook - The Group has initiated pre-emptive deployment in medical device leasing to capture opportunities post-epidemic, indicating a strategic focus on the medical field for future growth[57] - The Group's transformation from traditional finance leasing to a technological model is nearing completion, with a new business system expected to launch in the second quarter of 2020[64] - The Group plans to launch a new business system in Q2 2020, enabling online finance leasing and information services, enhancing overall competitiveness[65] - The Group aims to build a service platform in 2020, integrating high-tech solutions like big data and blockchain to optimize resource allocation across the medical industry[68] - The finance leasing market in the PRC is expected to grow, supported by policy measures from the People's Bank of China aimed at assisting SMEs[62] Shareholder Information - The Company’s total equity as of March 31, 2020, was RMB 303,891, an increase from RMB 300,271 at the beginning of the year[22] - As of March 31, 2020, the Company's issued share capital was HK$40,000,000, with 400,000,000 ordinary shares issued at HK$0.1 each[84] - The controlling shareholders, Mr. Zhang Junshen and Mr. Zhang Junwei, each hold 75% of the issued share capital through their respective companies[95] - Mr. Zhang Junshen and Mr. Zhang Junwei each have interests in 300,000,000 shares, representing 75% of the total shareholding[92] - Hero Global and Icon Global each hold 300,000,000 shares, accounting for 75% of the company's issued share capital[111] - Ms. Tang Yiping, as the spouse of Mr. Zhang Junshen, is deemed to have an interest in all shares held by him, which also amounts to 75%[115] - The ultimate controlling shareholders, Mr. Zhang Junshen and Mr. Zhang Junwei, have confirmed their concert party arrangement, maintaining their collective interest in 75% of the issued share capital[118] Operational Challenges - The Group's operational challenges were primarily due to the COVID-19 outbreak, leading to temporary suspensions of operations[69] - The Group's financial performance was adversely affected by the COVID-19 pandemic, leading to a temporary halt in operations[81] - The Group's proactive measures in response to the COVID-19 epidemic aim to minimize business losses and protect employee health[57] Future Guidance - The company provided guidance for Q4 2023, expecting revenue to be between $5.5 billion and $5.7 billion, reflecting a potential growth of 6% to 10%[140] - The company plans to enter the European market by Q1 2024, targeting a revenue contribution of $1 billion in the first year[140]

Financial Performance - Ziyuanyuan Holdings Group Limited reported a significant increase in revenue, achieving a total of 17,000 million in the fiscal year 2019[1]. - Revenue for 2019 was RMB 68,125,000, representing a 12.8% increase from RMB 60,409,000 in 2018[30]. - Profit before taxation increased by 15.2% to RMB 26,453,000 from RMB 22,958,000 in 2018[30]. - EBITDA rose by 20.4% to RMB 42,570,000 compared to RMB 35,369,000 in the previous year[30]. - The Group's revenue increased by approximately RMB7.7 million or approximately 12.8% to approximately RMB68.1 million for the year ended 31 December 2019, compared to approximately RMB60.4 million in 2018[52]. - The Group's finance leasing services include direct finance leasing and sale-leaseback, focusing on the medical device, printing, and logistics industries[52]. - The increase in revenue was also attributed to the Group starting operations in the medical device industry from October 2018[52]. - The Group incurred no listing expenses for the year ended 31 December 2019, following approximately RMB4.9 million in 2018[59]. - Profit attributable to owners of the Company was approximately RMB16.9 million for the year ended 31 December 2019, showing a slight decrease compared to RMB16.9 million for the year ended 31 December 2018, mainly due to increased staff costs and other operating expenses[70]. - Taxation increased from approximately RMB6.0 million for the year ended 31 December 2018 to approximately RMB9.6 million for the year ended 31 December 2019, driven by increased operating profits from PRC subsidiaries[69]. Strategic Initiatives - Future outlook indicates a strategic expansion plan aimed at increasing market share in the Greater China region, with a targeted growth rate of 15% over the next fiscal year[3]. - Ziyuanyuan Holdings is exploring potential mergers and acquisitions to diversify its product offerings and enhance operational efficiencies[5]. - The Group plans to launch a new business system in Q2 2020, integrating online finance leasing and industry information services[42]. - The Group aims to leverage fintech to enhance competitiveness and transform traditional finance leasing into a technological model[42]. - The Group is focusing on medical device leasing as a new economic opportunity post-COVID-19[40]. - The company is expanding its market presence in Southeast Asia, targeting a 15% market share within the next two years[18]. - A strategic acquisition of a local competitor is anticipated to enhance the company's service offerings and increase market penetration[18]. Research and Development - The company emphasized its commitment to research and development, focusing on new product innovations to enhance market competitiveness[2]. - The company is investing $5 million in research and development to advance its technology capabilities[18]. - A new technology platform is set to launch in Q2 2020, expected to drive a 25% increase in service efficiency[7]. Customer Engagement - The management highlighted a 20% increase in user data engagement, reflecting improved customer retention strategies[4]. - User data showed a growth in active users, reaching 1.2 million, which is a 30% increase compared to the previous year[18]. - The management emphasized the importance of enhancing customer experience, aiming for a 90% customer satisfaction rate by the end of the next fiscal year[18]. Corporate Governance - The Company adopted and complied with the Corporate Governance Code during the reporting period, ensuring proper regulation of business activities and decision-making processes[120]. - The Board is responsible for major decisions, including approval and monitoring of policies, strategies, budgets, and financial information[122]. - The Company has implemented corporate governance practices to ensure transparency and accountability in its operations[119]. - The Board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of skills and independent judgment[136]. - The Company has arranged appropriate liability insurance coverage for all Directors, which is regularly reviewed by the Board[131]. Financial Management - The Group aims to improve its financial position by reducing operational costs by 10% through streamlined processes and technology integration[6]. - The total staff cost for the year ended December 31, 2019, was approximately RMB 15.1 million, compared to RMB 8.3 million in 2018, reflecting an increase in employee headcount from 48 to 56[80]. - Finance costs increased from approximately RMB12.2 million for the year ended 31 December 2018 to approximately RMB13.0 million for the year ended 31 December 2019, primarily due to an increase in interest on bank borrowing from approximately RMB1.5 million to approximately RMB4.4 million[65]. Sustainability - Ziyuanyuan Holdings is committed to sustainable practices, with initiatives aimed at reducing carbon emissions by 30% over the next five years[10]. - The board of directors highlighted the commitment to sustainable practices, aiming for a 25% reduction in carbon footprint over the next five years[18].

Financial Performance - Ziyuanyuan Holdings Group Limited reported a significant increase in revenue, achieving a total of 17,000 million in the fiscal year 2019[2]. - Ziyuanyuan Holdings reported a net profit margin of 12% for the fiscal year 2019, indicating strong financial health and operational effectiveness[29]. - Revenue for 2019 was RMB 68,125,000, representing a 12.8% increase from RMB 60,409,000 in 2018[30]. - Profit before taxation increased by 15.2% to RMB 26,453,000 from RMB 22,958,000 in 2018[30]. - EBITDA for 2019 was RMB 42,570,000, a 20.4% increase compared to RMB 35,369,000 in 2018[30]. - The Group's revenue increased by approximately RMB7.7 million or approximately 12.8% to approximately RMB68.1 million for the year ended 31 December 2019, compared to approximately RMB60.4 million in 2018[52]. - The Group's total equity as at 31 December 2019 was approximately RMB300.3 million, an increase from approximately RMB283.4 million in 2018[70]. - Profit attributable to owners of the Company was approximately RMB16.9 million for both years ended 31 December 2019 and 2018, with a slight decrease attributed to increased staff costs and other operating expenses[70]. Strategic Initiatives - Future outlook indicates a strategic expansion plan aimed at increasing market share in the Greater China region, with a projected growth rate of 15% over the next fiscal year[12]. - Ziyuanyuan Holdings is exploring potential mergers and acquisitions to diversify its product offerings and enhance operational efficiency[12]. - A new technology initiative is set to launch in Q3 2020, expected to drive additional revenue streams and enhance service delivery[12]. - The Group plans to launch a new business system in Q2 2020, integrating online finance leasing and industry information services[42]. - The Group aims to leverage fintech to enhance competitiveness and transform traditional finance leasing into a technological model[42]. - The Group is focusing on medical device leasing as a new economic opportunity post-COVID-19[40]. - The finance leasing market in the PRC is expected to grow due to increased policy support for SMEs[41]. Research and Development - The company emphasized its commitment to research and development, focusing on new product innovations to enhance market competitiveness[6]. - Research and development expenditures increased by 30%, totaling $10 million, to support new technology initiatives[18]. Customer Engagement - The management highlighted a 20% increase in user data engagement, reflecting improved customer retention strategies[29]. - User data showed a growth in active users, reaching 1.2 million, which is a 15% increase year-over-year[18]. - Customer satisfaction ratings improved to 85%, reflecting a 5% increase from the previous year, indicating successful service enhancements[18]. Corporate Governance - The board of directors confirmed that all financial statements are accurate and comply with GEM Listing Rules, ensuring transparency for investors[6]. - The Company adopted and complied with the Corporate Governance Code during the reporting period, ensuring proper regulation of business activities and decision-making processes[120]. - The Board is responsible for promoting the success of the Company by providing effective leadership and ensuring transparency and accountability in operations[122]. - The Company has implemented corporate governance practices to ensure compliance with legal and regulatory requirements[128]. - The Board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of skills and independent judgment[136]. Operational Efficiency - The company aims to improve its financial position by reducing operational costs by 10% in the upcoming year[29]. - The company plans to implement cost-cutting measures aimed at reducing operational expenses by 15% over the next year[18]. - Staff costs rose from RMB8.3 million in 2018 to approximately RMB13.8 million in 2019, attributed to an increase in headcount and salaries[55]. - Other operating expenses increased from approximately RMB10.4 million for the year ended 31 December 2018 to approximately RMB13.3 million for the year ended 31 December 2019, mainly due to increased depreciation of right-of-use assets and staff costs recognized as research and development costs[65]. Leadership and Management - Mr. Chow has approximately 20 years of experience in finance and accounting, providing independent advice to the Board and supporting the Group's operations[102]. - The Group's financial management team includes professionals with extensive backgrounds in capital market transactions, financial advisory, and mergers and acquisitions[102][104][110]. - The management team is committed to statutory compliance and corporate governance, ensuring transparency and accountability[110]. - The leadership team has a strong focus on internal audit and cost control to optimize financial performance[104][110]. Market Expansion - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[18]. - The Group established operation centers in Beijing and Hangzhou to strengthen its market position in northern and eastern PRC[82].