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].

Financial Performance - Revenue from finance leasing services increased to RMB 16,344,000 for the three months ended September 30, 2019, up from RMB 14,207,000 in the same period of 2018, representing a growth of 15.03%[15] - Profit before taxation for the three months ended September 30, 2019, was RMB 8,801,000, compared to RMB 6,272,000 in the same period of 2018, reflecting an increase of 40.43%[15] - Total comprehensive income for the period was RMB 6,464,000, up from RMB 4,119,000 in the corresponding period of 2018, marking a growth of 57.00%[15] - The company reported a profit of RMB 13,880,000 for the period ending September 30, 2019, indicating a positive financial performance[25] - For the nine months ended September 30, 2019, the Group's profit attributable to owners was approximately RMB 13.9 million, an increase from RMB 10.1 million for the same period in 2018, representing a growth of 37.62%[172] Earnings and Share Performance - Basic earnings per share remained stable at 1 RMB cent for the three months ended September 30, 2019, unchanged from the same period in 2018[15] - The Group's earnings per share for the nine months ended September 30, 2019, were calculated based on the profit for the period attributable to owners of the Company[136] Costs and Expenses - Staff costs increased to RMB 2,526,000 for the three months ended September 30, 2019, compared to RMB 2,345,000 in the same period of 2018, an increase of 7.72%[15] - Other operating expenses rose to RMB 2,933,000 for the three months ended September 30, 2019, compared to RMB 2,293,000 in the same period of 2018, an increase of 27.93%[15] - The total staff costs for the nine months ended September 30, 2019, amounted to RMB 10,752,000, representing an increase from RMB 5,870,000 in the same period of 2018[130] - Other operating expenses increased from approximately RMB 7.2 million to approximately RMB 10.5 million, driven by higher legal fees, travel expenses, and staff costs related to research and development[165] Finance Costs - Finance costs decreased to RMB 2,258,000 for the three months ended September 30, 2019, down from RMB 2,492,000 in the same period of 2018, a reduction of 9.36%[15] - Finance costs decreased from approximately RMB 8.7 million to approximately RMB 7.7 million, primarily due to a reduction in imputed interest expense on interest-free deposits from finance lease customers[166] Taxation - No provision for Hong Kong Profits Tax was made as the Group had no assessable income during both periods, while subsidiaries in the PRC are subject to a tax rate of 25%[126] - The effective corporate income tax rate applicable to the Group's subsidiaries in China is 25%[170] Share Capital and Ownership - The company issued 100,000,000 ordinary shares at HK$0.76 per share on July 9, 2018, as part of its listing on the GEM of the Stock Exchange[28] - As of September 30, 2019, the Company's issued share capital was HK$40,000,000, with 400,000,000 ordinary shares issued[173] - The controlling shareholders, Mr. Zhang Junshen and Mr. Zhang Junwei, are deemed to be interested in 75% of the issued share capital of the Company[183] - The shareholding structure remains unchanged since the Company was listed on the GEM of the Stock Exchange on July 9, 2018[173] Strategic Focus and Market Presence - The company is focused on expanding its market presence through strategic acquisitions and partnerships, particularly in the finance leasing sector[28] - The Group's focus on finance leasing services in the medical device, printing, and logistics industries has been emphasized, with operational expertise gained in these sectors[143] - The Group is transitioning its finance leasing business to a technology-driven model, focusing on financial technology and big data applications to enhance competitiveness[152] - The Group aims to consolidate its position as a major market player in the finance leasing industry in China, striving for overall competitiveness and market share enhancement[152] Accounting Standards and Compliance - The Group has applied HKFRS 16 for the first time, which supersedes HKAS 17, impacting the accounting treatment of leases[39] - The application of new and amendments to HKFRSs has had no material impact on the Group's financial performance for the current and prior periods[39] - The Group's accounting policies have been updated to align with the latest HKFRS requirements, ensuring compliance and accuracy in financial reporting[39] - The Group continues to apply new and amended HKFRSs, ensuring compliance with accounting standards[115] Research and Development - Research and development expenditures are being prioritized to enhance product offerings and technological advancements in the financial services industry[28] - Research and development expenditures are recognized as expenses in the period incurred, with no internally-generated intangible assets recognized during the reporting period[115] Associate Investments - The Group's share of loss from an associate was RMB 10,000 for the three months ended September 30, 2019, and RMB 47,000 for the nine months ended, reflecting ongoing challenges in associate performance[121] - The Group assesses whether there is objective evidence that the interest in an associate may be impaired, and any impairment loss recognised forms part of the carrying amount of the investment[106]

Revenue and Profitability - The company reported a significant increase in revenue for the first half of 2019, with total revenue reaching HKD 746 million, representing a year-on-year growth of 15%[1]. - The company recorded a profit attributable to owners of RMB 7,416,000 for the six months ended June 30, 2019, representing an increase of 23.0% from RMB 6,030,000 in the same period of 2018[123]. - The company's revenue for the six months ended June 30, 2019, increased by approximately RMB 3.8 million or 12.8% to approximately RMB 32.9 million, compared to RMB 29.1 million for the same period in 2018[172]. - The revenue from the printing industry remains the largest contributor to the company's earnings, driven by increased demand for printing equipment in China[172]. User Engagement and Market Expansion - User data showed a steady increase in active users, with a reported growth of 20% compared to the previous year, indicating strong market engagement[1]. - The company is actively pursuing market expansion strategies, targeting new regions in Asia, which are anticipated to increase market share by 5%[1]. - The company has expanded its service offerings to approximately 506 small and medium-sized enterprise clients across 29 provinces, cities, and autonomous regions in China[167]. - The company plans to capitalize on the growing medical equipment leasing market, aiming to support the industry's upgrade and development[168]. Financial Position and Cash Flow - Cash flow from operations increased by 25%, providing a strong liquidity position to support future investments and growth initiatives[1]. - The total cash and cash equivalents decreased by RMB 21,229 thousand, ending at RMB 3,775 thousand as of June 30, 2019, compared to RMB 5,989 thousand at the end of the previous year[35]. - As of June 30, 2019, cash and cash equivalents were approximately RMB 3.8 million, down from RMB 25.0 million as of December 31, 2018[185]. - The debt-to-equity ratio increased to approximately 18.3% as of June 30, 2019, from 9.6% as of December 31, 2018, primarily due to increased bank borrowings for business expansion[185]. Research and Development - Ongoing research and development efforts are focused on innovative technologies, with an investment of HKD 50 million allocated for the development of new features and enhancements[1]. - The company incurred research and development costs of RMB 1,052,000 during the six months ended June 30, 2019, compared to no R&D costs in the same period of 2018[119]. Employee Costs and Management Compensation - The total employee costs for the six months ended June 30, 2019, amounted to RMB 8,043,000, which is a significant increase of 128.0% compared to RMB 3,525,000 for the same period in 2018[119]. - Management's compensation for the reporting period was RMB 2,103,000, an increase from RMB 1,093,000 in the same period last year[161]. - Employee costs increased from approximately RMB 3.5 million for the six months ended June 30, 2018, to about RMB 7.1 million for the six months ended June 30, 2019, primarily due to an increase in the number of employees and salaries[173]. Strategic Initiatives - The company provided an optimistic outlook for the second half of 2019, projecting a revenue increase of 10-15% based on current market trends and user acquisition strategies[1]. - New product launches are expected to contribute an additional HKD 100 million in revenue, with a focus on enhancing user experience and expanding product offerings[1]. - The company is considering potential mergers and acquisitions to accelerate growth, with a budget of up to HKD 200 million earmarked for strategic opportunities[1]. - A new marketing strategy has been implemented, aiming to increase brand awareness and customer retention, projected to improve customer loyalty by 15%[1]. Financial Reporting and Accounting Standards - The company applied new accounting standards, including HKFRS 16 on leases, which may impact future financial reporting and asset management[40]. - The company has adopted HKFRS 16, leading to significant changes in accounting policies related to leases[60]. - The impact of adopting HKFRS 16 has been recognized in retained earnings without restating comparative information[75]. - The company confirmed that the application of HKFRS 16 did not significantly affect the amounts reported in the condensed consolidated financial statements for the six months ended June 30, 2019[98]. Credit Risk and Financing - The expected credit loss provision for financing lease receivables was RMB 12,675,000 as of June 30, 2019, up from RMB 10,918,000 as of December 31, 2018, reflecting a rise of approximately 16.1%[134]. - The aging analysis of overdue financing lease receivables showed that those overdue by 1 to 30 days were RMB 433,000, while those overdue by more than 90 days were RMB 5,696,000 as of June 30, 2019[133]. - The company incurred RMB (388) thousand in purchasing furniture and office equipment, compared to RMB (12) thousand in the previous year, indicating increased operational investments[35]. Investments and Acquisitions - The group reported an investment cost in associates of RMB 1,000,000, with a share of losses post-acquisition amounting to RMB (37,000) as of June 30, 2019[112]. - The group holds a 20% equity interest in Shenzhen Kangyi Pediatric Medical Equipment Sharing Management Co., Ltd., which is involved in the sale and rental of medical equipment[112]. - The company has entered into several new lease agreements to rent office space over the next three years, recognizing a right-of-use asset of RMB 5,841,000[125].

Financial Performance - For the three months ended March 31, 2019, the company reported revenue from financing lease income of RMB 17,532,000, an increase of 18.9% compared to RMB 14,751,000 for the same period in 2018[8]. - The company's pre-tax profit for the same period was RMB 5,910,000, representing a 64.3% increase from RMB 3,597,000 in the prior year[8]. - The net profit attributable to the owners of the company for the three months was RMB 4,042,000, up 71.5% from RMB 2,355,000 in the previous year[8]. - Basic earnings per share increased to RMB 1.01, compared to RMB 0.79 for the same period in 2018, reflecting a growth of 27.8%[8]. - The total comprehensive income for the period was RMB 4,042,000, compared to RMB 2,355,000 in the same period last year, reflecting a growth of 71.5%[8]. - Revenue for the three months ended March 31, 2019, increased by approximately RMB 2.7 million or about 19% to approximately RMB 17.5 million, compared to RMB 14.8 million for the same period in 2018[52]. - The profit attributable to the owners of the company for the three months ended March 31, 2019, was approximately RMB 4.0 million, an increase from RMB 2.4 million for the same period in 2018, primarily due to increased revenue and reduced listing expenses[62]. Employee Costs - Employee costs rose significantly to RMB 3,634,000, compared to RMB 1,606,000 in the same period last year, indicating an increase of 126.5%[8]. - Total employee costs for the period amounted to RMB 3,634,000, up from RMB 1,606,000 in the previous year, indicating a significant increase of approximately 126.5%[39]. - Employee costs rose from approximately RMB 1.6 million to about RMB 3.6 million, an increase of 125% due to a rise in employee numbers and salaries[53]. Financing Costs - The company incurred financing costs of RMB 3,406,000, slightly up from RMB 3,190,000 in the previous year, marking a 6.8% increase[8]. - The group recognized interest expenses of RMB 3,406,000 for financing costs, compared to RMB 3,190,000 in the previous year, reflecting an increase of approximately 6.8%[33]. - The group’s total financing costs included interest on bank borrowings of RMB 564,000, up from RMB 468,000 in the previous year, reflecting an increase of approximately 20.5%[33]. - Financing costs increased from approximately RMB 3.2 million for the three months ended March 31, 2018, to approximately RMB 3.4 million for the same period in 2019, mainly due to interest expenses from interest-free deposits from finance lease customers rising from approximately RMB 2.5 million to RMB 2.8 million[59]. - The interest expense from bank borrowings increased from approximately RMB 0.5 million to approximately RMB 0.6 million for the same periods[59]. Taxation - The income tax expense for the period was RMB 1,868,000, compared to RMB 1,242,000 for the same period in 2018, marking an increase of approximately 50.5%[34]. - The group’s effective tax rate for its subsidiaries in China is 25% as per the Corporate Income Tax Law[35]. - The applicable corporate income tax rate for the company's subsidiaries in China is 25%[59]. Corporate Governance - The company maintains high standards of corporate governance, adhering to the GEM listing rules and ensuring proper regulatory oversight of business activities[81]. - The audit committee has reviewed the unaudited consolidated financial statements for the three months ended March 31, 2019, confirming compliance with applicable accounting standards and GEM listing rules[90]. - The audit committee is composed of experienced non-executive directors, ensuring appropriate professional qualifications[87]. - The company has adopted a code of conduct for directors' securities trading, confirming compliance by all directors as of March 31, 2019[86]. - The board believes that the dual role of the chairman and CEO does not impair the balance of power and authority within the company[83]. - The company has established a non-competition agreement with major shareholders, confirming no engagement in competing businesses[79]. - The company has confirmed that all major shareholders have complied with the non-competition commitments since the listing date[79]. - No significant competition or conflict of interest was reported among directors or major shareholders as of March 31, 2019[78]. Market Outlook and Strategy - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[8]. - The company is transitioning from traditional financing leasing to technology-driven financing leasing, leveraging fintech and big data applications to enhance competitiveness in the leasing industry[51]. - The future outlook for the financing leasing market in China is promising, driven by policy support for SMEs and the growing demand for financing solutions[48]. - The company has established connections with approximately 368 small and medium-sized enterprise clients across 28 provinces, cities, and autonomous regions in China[47]. Other Financial Information - The group did not recommend any interim dividend for the three months ended March 31, 2019, consistent with the previous year[40]. - The company does not recommend the payment of an interim dividend for the three months ended March 31, 2019, consistent with no dividend declared for the same period in 2018[63]. - The group applied new Hong Kong Financial Reporting Standards effective from January 1, 2019, with no significant impact on the financial statements[28]. - The group transitioned to HKFRS 16, recognizing lease liabilities and corresponding right-of-use assets, affecting the financial position but not restating comparative figures[29]. - The company has maintained its capital structure since its successful listing on the GEM on July 9, 2018[64]. - As of March 31, 2019, the company's issued share capital was HKD 40 million, with 400 million ordinary shares issued, each with a par value of HKD 0.1[64]. - Major shareholders, including Hero Global and Mark Global, each hold 300 million shares, representing 75% of the issued share capital[74]. - The company has not disclosed any new product or technology developments in this report[62]. - The company has not purchased, sold, or redeemed any of its listed securities since the listing date[80]. - No significant events affecting the group were reported after March 31, 2019, up to the report date[84].

Business Expansion and Market Position - The company successfully listed on the Hong Kong Stock Exchange's GEM on July 9, 2018, expanding its customer base in the printing, logistics, and medical device sectors[16]. - As of December 31, 2018, the company provided services to approximately 315 small and medium-sized enterprises across 27 provinces, cities, and autonomous regions in China[16]. - The company has expanded its services to the medical device industry since October 2018, capitalizing on growth opportunities in this sector[16]. - The company plans to continue consolidating its position as a major market participant in China's financing leasing industry, enhancing overall competitiveness and market share[20]. - The financing leasing market in China is expected to grow significantly due to increasing demand and policy support for small and medium-sized enterprises[17]. - The company aims to help upgrade the medical industry by focusing on medical device leasing and related fields[17]. Financial Performance - The group’s revenue increased by approximately RMB 8.3 million or about 16.0% to approximately RMB 60.4 million for the year ended December 31, 2018, compared to RMB 52.1 million in 2017[25]. - The group provided financing leasing services to approximately 315 small and medium-sized enterprise clients across 27 provinces, cities, and autonomous regions in China as of December 31, 2018, up from 292 clients in 2017[24]. - The group recorded a significant foreign exchange gain of approximately RMB 0.65 million due to the conversion of proceeds from share sales into RMB for use in its China operations[26]. - The group’s profit attributable to owners for the year ended December 31, 2018, was approximately RMB 16.9 million, an increase from RMB 9.6 million in 2017[37]. - The group’s total equity increased to approximately RMB 283.4 million as of December 31, 2018, from RMB 210.4 million in 2017[39]. - The group’s cash and cash equivalents amounted to approximately RMB 25.0 million as of December 31, 2018, compared to RMB 2.3 million in 2017[39]. Employee and Operational Costs - Employee costs increased from approximately RMB 6.5 million in 2017 to about RMB 8.3 million in 2018, primarily due to an increase in employee numbers and salaries[27]. - The company reported a total employee cost of approximately RMB 8.3 million for the year ended December 31, 2018, an increase of 27.7% from RMB 6.5 million in 2017[49]. - The company increased its workforce to 48 employees as of December 31, 2018, up from 34 employees in 2017[49]. - Financing costs rose from approximately RMB 8.8 million in 2017 to about RMB 12.2 million in 2018, mainly due to increased interest expenses from interest-free deposits and bank borrowings[33]. Corporate Governance - The company is committed to corporate governance, presenting a governance report for the fiscal year ending December 31, 2018, to ensure transparency and accountability[78]. - The company has adopted and complied with the corporate governance code as per GEM listing rules, ensuring transparency and accountability in its operations[79]. - The board of directors is responsible for major decisions, including financial data and significant transactions, with management supporting the board's duties[80]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of skills and experience[86]. - The company has arranged appropriate liability insurance for all directors, which will be reviewed regularly by the board[83]. Risk Management and Compliance - The risk management manager has over 9 years of experience, focusing on client due diligence and credit assessment, which strengthens the company's risk management framework[74]. - The company has implemented a clear organizational structure with defined responsibilities and authority for internal controls[146]. - The board believes that the risk management and internal control systems adopted for the year ended December 31, 2018, are effective[146]. - All directors confirmed compliance with the GEM Listing Rules regarding securities transactions during the relevant period[138]. - The company has adopted a code of conduct to ensure high ethical standards and values in all business practices[146]. Environmental, Social, and Governance (ESG) Initiatives - The first Environmental, Social, and Governance (ESG) report was presented, highlighting the company's commitment to corporate social responsibility[163]. - The ESG report covers the company's overall performance and selected key performance indicators from January 1, 2018, to December 31, 2018[164]. - The total greenhouse gas emissions for the reporting period amounted to 115.73 tons of CO2 equivalent, with direct emissions (Scope 1) at 8.94 tons, energy indirect emissions (Scope 2) at 3.32 tons, and other indirect emissions (Scope 3) at 103.47 tons[181]. - The company aims to minimize carbon emissions and energy consumption, focusing on reducing waste generation as part of its social responsibility[174]. - The company has implemented a customer feedback system to evaluate the services provided[172]. Shareholder Engagement - The company emphasizes investor relations, encouraging shareholders to attend annual and special general meetings to address their inquiries[153]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting, demonstrating the company's commitment to shareholder rights[154]. - The company maintains a policy for fair disclosure and comprehensive reporting of its performance and business[153]. - The company encourages continuous dialogue with shareholders to facilitate informed decision-making and engagement[158].