智通财经6月9日电，百应控股、汇森股份在港交所暂停交易。 ...

百应控股集团有限公司在香港暂停交易。 ...

Group 1 - The stock price of Baiying Holdings (08525.HK) closed at HKD 0.930 on April 29, marking a 6.9% increase from the previous trading day and reaching a nearly one-year high [1] - The net capital inflow for the day was HKD 0.19 million, with a total inflow of HKD 0.186 million and no outflow recorded [1] Group 2 - Baiying Holdings Group Limited was officially listed on the Hong Kong Stock Exchange GEM on July 18, 2018, under the stock name Baiying Holdings and stock code 8525 [2] - The company focuses on providing equipment financing solutions to small and medium-sized enterprises and individual entrepreneurs, with qualifications in financing leasing and accounts receivable commercial factoring [2] - The company has a strong shareholder base led by Fujian Qipilang Group and includes leading enterprises based in Fujian Province, contributing to stable growth and sound business operations [2] - The management team consists of experienced professionals with an average of about ten years in banking, financing, and investment industries, particularly in risk management, financing leasing, and marketing [2] - Since its establishment, the company has accumulated experience in meeting the financing needs of clients in key sectors such as textiles, apparel, and special equipment, serving over 1,000 clients across more than 20 provinces [2] - The company primarily offers two types of financing leasing services: direct financing leasing and sale-leaseback, along with limited factoring services and other value-added consulting services [2] - The business goal of the company is to become a leading financing leasing company in China while maintaining an effective risk management system [2]

Financial Performance - Total revenue for 2024 was RMB 33,719,000, a decrease of 6.5% compared to RMB 36,027,000 in 2023[9] - The group reported a net loss of RMB 17,342,000 for 2024, compared to a net loss of RMB 16,133,000 in 2023, indicating a worsening of 7.5%[9] - The company's revenue decreased from RMB 36.0 million for the year ended December 31, 2023, to RMB 33.7 million for the year ended December 31, 2024, representing a decline of approximately 6.39%[16] - The net loss for the reporting period was approximately RMB 17.3 million, compared to a net loss of RMB 16.1 million for the year ended December 31, 2023[16] - The company recorded a loss of RMB 17.3 million for the year ended December 31, 2024, an increase from RMB 16.1 million for the year ended December 31, 2023, primarily due to the impairment loss reversal of RMB 9.1 million[63] Assets and Liabilities - Total assets increased to RMB 376,858,000 in 2024, up from RMB 278,818,000 in 2023, representing a growth of 35.3%[9] - Total liabilities rose significantly to RMB 155,310,000 in 2024, compared to RMB 39,889,000 in 2023, marking an increase of 288.5%[9] - Current liabilities rose significantly from RMB 30.6 million as of December 31, 2023, to RMB 119.8 million as of December 31, 2024, mainly due to an increase in borrowings of RMB 95.0 million[71] - The company's net asset value decreased from RMB 238.9 million as of December 31, 2023, to RMB 221.5 million as of December 31, 2024, primarily due to an increase in total liabilities[72] Revenue Breakdown - Revenue from financing leasing services amounted to RMB 7.4 million, accounting for 22.1% of total revenue[17] - Revenue from the sale of vinegar and other condiments reached RMB 10.6 million for the year ended December 31, 2024, accounting for 31.4% of total revenue[29] - For the year ended December 31, 2024, revenue from the sales of packaging and paper products was RMB 15.0 million, accounting for 44.4% of total revenue[33] Business Operations and Strategy - The company has expanded its sales network to over 10,000 points across multiple provinces and cities in China, enhancing market reach[11] - The group aims to leverage its core advantages to expand its national market presence in the food vinegar industry, targeting leadership in this sector[11] - The company is exploring the Kunming market to drive steady growth in its paper business, indicating strategic market expansion efforts[11] - The company plans to establish a wholly-owned subsidiary, Xiamen Baishun Information Technology Co., Ltd., with a registered capital of RMB 1 million to expand its fintech and service business[93] Financial Management - The company has implemented a comprehensive risk management system, ensuring strict procedures for credit assessments and due diligence before entering into financing lease agreements[60] - The company regularly monitors its cash flow and cash balances to maintain liquidity that meets operational needs while supporting business growth and expansion[65] - The company is focused on capital operation and financing management, ensuring effective cash management and compliance[98] Expenses and Costs - Interest expenses increased from RMB 1.5 million for the year ended December 31, 2023, to RMB 2.7 million for the year ended December 31, 2024, primarily due to an increase in average loan balances[53] - Administrative expenses rose from RMB 16.8 million for the year ended December 31, 2023, to RMB 19.7 million for the year ended December 31, 2024, mainly due to lower-than-expected sales of new products leading to increased management costs by RMB 3.6 million[54] - Sales and distribution expenses increased from RMB 10.6 million for the year ended December 31, 2023, to RMB 15.1 million for the year ended December 31, 2024, primarily due to an increase in employee costs of RMB 1.8 million, promotional expenses of RMB 0.4 million, and service fees of RMB 1.6 million[55] Shareholder Information - As of December 31, 2024, revenue from the top five customers accounted for 70% of total revenue, with the largest customer contributing 30%[128] - The company does not propose any dividend distribution for the year ending December 31, 2024[137] - Major shareholders include Mr. Zhou Yongwei with 124,143,908 shares (45.98%) and Septwolves Holdings with 118,968,750 shares (44.06%) as of December 31, 2024[175] Corporate Governance - The company is committed to maintaining good corporate governance and compliance with relevant laws and regulations in China and Hong Kong[120] - The company has received annual confirmations of independence from all independent non-executive directors as required by GEM listing rules[147] - The company has adopted and fully complied with the corporate governance code during the reporting period[159] Risk Management - Credit risk is identified as the most significant inherent risk, stemming from clients' inability or unwillingness to repay financial obligations[124] - The company has no significant disputes with employees or customers as of December 31, 2024[122] Leadership and Management - Lin Zhenyan has been appointed as the Chief Financial Officer of Qipilang Holdings Group since May 2024, overseeing financial planning and compliance management[98] - The company has a strong leadership team with extensive experience in finance and management, including independent directors with over 15 years in banking and fintech[102] - The company emphasizes strategic planning and investment decision support, with a focus on financial system construction and budget control[98]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 33,719,000, a decrease of 6.5% compared to RMB 36,027,000 in 2023[12]. - The company recorded a loss before tax of RMB 12,467,000 for 2024, compared to a loss of RMB 16,459,000 in 2023, indicating an improvement of approximately 24.1%[12]. - The company reported a net loss of RMB 17,342,000 for the year 2024, compared to a loss of RMB 16,133,000 in 2023, indicating a worsening of 7.5%[12]. - Total revenue decreased from RMB 360.27 million in 2023 to RMB 337.19 million in 2024, primarily due to a decrease in factoring service revenue by RMB 46.28 million and packaging and paper product trade revenue by RMB 60.00 million, partially offset by an increase in vinegar and other seasoning sales by RMB 37.00 million[54]. - Other income increased from RMB 14.00 million in 2023 to RMB 38.00 million in 2024, mainly due to an increase in net gains from financial assets measured at fair value by RMB 30.00 million[55]. - Interest expenses rose from RMB 15.00 million in 2023 to RMB 27.00 million in 2024, attributed to an increase in average loan balances[56]. - Administrative expenses increased from RMB 168.04 million in 2023 to RMB 197.32 million in 2024, primarily due to lower-than-expected sales of new products leading to increased management costs by RMB 36.00 million[57]. - Selling and distribution expenses increased from RMB 106.00 million in 2023 to RMB 151.00 million in 2024, driven by an increase in employee costs by RMB 18.00 million and service fees by RMB 16.00 million[58]. - The company's loss increased from RMB 16.1 million for the year ended December 31, 2023, to RMB 17.3 million for the year ended December 31, 2024, mainly due to impairment losses of RMB 9.1 million[66]. Assets and Liabilities - Total assets increased to RMB 376,858,000 in 2024, up from RMB 278,818,000 in 2023, representing a growth of 35.3%[12]. - Total liabilities rose significantly to RMB 155,310,000 in 2024, compared to RMB 39,889,000 in 2023, marking an increase of 288.5%[12]. - The net asset value decreased to RMB 221,548,000 in 2024 from RMB 238,929,000 in 2023, reflecting a decline of 7.3%[12]. - The company's debt-to-equity ratio increased from 0.04 times in 2023 to 0.58 times in 2024, indicating a significant increase in financial leverage[56]. - The total current assets decreased from RMB 158.0 million as of December 31, 2023, to RMB 135.7 million as of December 31, 2024, mainly due to a decrease in financial assets measured at fair value[73]. - The total current liabilities increased from RMB 30.6 million as of December 31, 2023, to RMB 119.8 million as of December 31, 2024, primarily due to an increase in borrowings of RMB 95.0 million[74]. - The company's loans and receivables increased significantly from RMB 68.9 million as of December 31, 2023, to RMB 173.1 million as of December 31, 2024[77]. Business Strategy and Market Position - The company plans to focus on market expansion and new product development in the upcoming fiscal year[3]. - The management emphasized the importance of strategic initiatives to drive future growth and profitability[3]. - The company is exploring potential mergers and acquisitions to enhance its market position and operational capabilities[3]. - Qiaoxin's sales network has surpassed 10,000 points, covering multiple provinces and cities across the country, indicating successful market expansion[14]. - The company aims to leverage its core advantages to expand its national market presence and strive to become a leading brand in the Chinese vinegar industry[14]. - Baiying Paper Industry is exploring the Kunming market to promote steady business growth, indicating strategic market expansion efforts[14]. Compliance and Governance - The company has complied with major regulatory capital requirements and borrowing restrictions as of December 31, 2024[39]. - The company has maintained compliance with all applicable regulations regarding foreign investment and financing lease operations as of December 31, 2024[40][42]. - The company emphasizes compliance and corporate governance through its independent directors[105][107][109][110]. - The board consists of three executive directors and four independent non-executive directors, ensuring effective leadership[182]. - The company has established appropriate insurance arrangements for its directors and senior officers against legal actions they may face[193]. - The audit committee has reviewed and agreed with the accounting principles and practices adopted by the company[171]. Risk Management - Credit risk is identified as the most significant inherent risk, stemming from clients' inability or unwillingness to repay financial obligations[127]. - Liquidity risk arises from the potential inability to meet financial obligations as they come due, which could adversely affect the company's operations and financial condition[128]. - The company has initiated legal proceedings to recover overdue debts from 14 customers involving 19 default agreements, reflecting a proactive approach to managing credit risk[60]. Future Outlook - The global economy is expected to continue a moderate recovery trend into 2025, with significant growth divergence between developed and emerging markets[96]. - The company aims to deepen cooperation with existing clients in the paper industry to promote steady business growth[98]. - The financing leasing business will actively respond to policy directions, optimize business structure, and strengthen risk control systems[96]. - The company is committed to a strategy of "steady operation and focus on core business" in response to a complex environment[96]. Shareholder Information - The company did not propose any dividend distribution for the year ending December 31, 2024[140]. - As of December 31, 2024, Mr. Zhou Yongwei holds 124,143,908 shares, representing 45.98% of the issued share capital[178]. - Zijiang Capital owns 37,968,750 shares, accounting for 14.06% of the issued share capital[178]. - HDK Capital, fully owned by Mr. Huang Dake, holds 12,430,934 shares, which is 4.60% of the issued share capital[177]. Director and Management Information - Li Yao appointed as independent non-executive director from March 5, 2025, with over 15 years of experience in banking and fintech[105]. - Tu Liandong has been an independent non-executive director since June 19, 2018, and has held various leadership roles in investment management and asset management[107]. - The company’s senior management is responsible for daily operations and risk management[186].

Group 1 - The core issue is that Baiying Holdings has received a letter from the Hong Kong Stock Exchange indicating that the company has failed to maintain sufficient business operations and asset support for its shares to continue being listed [1] - The Hong Kong Stock Exchange believes that the scale of the company's financial services business is extremely small, the vinegar business is also small, and the paper trading business is not substantial [1] - If the company does not apply for a review, its shares will be suspended from trading on December 17 [1]

Company Overview - Baiying Holdings Group Limited is listed on the GEM with a focus on small and medium-sized enterprises, which generally carry higher investment risks[1]. - The report period covers six months ending June 30, 2024, providing insights into the company's financial performance and market activities[5]. - The company has subsidiaries including Fujian Baiying Paper Industry Co., Ltd., established in January 2021, contributing to its operational scope[5]. Financial Performance - Revenue decreased from RMB 16.9 million for the six months ended June 30, 2023, to RMB 14.7 million for the six months ended June 30, 2024, representing a decline of approximately 13.0%[9]. - The company recorded a loss of RMB 7.5 million for the six months ended June 30, 2023, which increased to a loss of RMB 9.7 million for the six months ended June 30, 2024[9]. - Total revenue decreased from RMB 168.65 million for the six months ended June 30, 2023, to RMB 146.80 million for the six months ended June 30, 2024, primarily due to a decrease in factoring service income by RMB 26.3 million and packaging paper sales by RMB 42 million, partially offset by an increase in vinegar and other condiments revenue by RMB 35 million[29]. - The company reported a net loss of RMB 9,704,001 for the six months ended June 30, 2024, compared to a loss of RMB 7,468,480 in the same period last year, representing a 30.06% increase in losses[76]. - Basic and diluted loss per share was RMB (3.60), compared to RMB (2.77) for the same period in 2023[76]. Revenue Breakdown - Financing services generated revenue of RMB 2.8 million for the six months ended June 30, 2024, accounting for 19.0% of total revenue[10]. - The revenue from vinegar and other condiments for the six months ended June 30, 2024, was RMB 5.6 million, accounting for 38.1% of total revenue[22]. - The revenue from packaging and paper products for the six months ended June 30, 2024, was RMB 6.3 million, representing 42.9% of total revenue[22]. - Revenue from the sale of packaging and paper products was RMB 6,293,347, down 39.5% from RMB 10,449,316 in the previous year[87]. - Revenue from the sale of vinegar and other condiments increased significantly to RMB 5,335,480, up 177.5% from RMB 1,925,780 in the same period last year[87]. Expenses and Losses - Administrative expenses rose from RMB 58.16 million to RMB 81.51 million, mainly due to underutilization of capacity leading to increased management costs by RMB 20 million[32]. - The company recorded a loss of RMB 75 million for the six months ended June 30, 2023, which increased to RMB 97 million for the six months ended June 30, 2024, attributed to decreased revenue and increased administrative and sales expenses[36]. - Other income decreased from RMB 7 million to RMB 2 million, mainly due to a reduction in government subsidies by RMB 4 million[30]. - The company’s tax expenses increased from RMB 3 million to RMB 10 million for the six months ended June 30, 2024[35]. Cash Flow and Assets - As of June 30, 2024, cash and cash equivalents decreased to RMB 9.966 million from RMB 13.649 million as of December 31, 2023, primarily due to increased sale-leaseback services[44]. - The net cash used in operating activities for the six months ended June 30, 2024, was RMB 22.5 million, mainly due to an operating loss of RMB 6.7 million and negative impacts from changes in working capital[39]. - Total current assets decreased from RMB 158.0 million as of December 31, 2023, to RMB 116.983 million as of June 30, 2024, primarily due to a decrease in loans and receivables by RMB 5.2 million and cash and cash equivalents by RMB 3.7 million[43]. - The company's net assets decreased from RMB 238.9 million as of December 31, 2023, to RMB 229.2 million as of June 30, 2024[43]. Governance and Compliance - The company has a diverse board of directors and committees overseeing various aspects of governance and compliance, ensuring accountability[7]. - The report indicates that the company is committed to transparency and accuracy in its financial reporting, as confirmed by the board of directors[1]. - The company complied with all applicable regulations for the six months ended June 30, 2024[28]. - The company has fully complied with the corporate governance code as per GEM listing rules during the reporting period[70]. Future Outlook and Strategy - The company plans to establish a benchmark market in Fujian for its vinegar products and expand its online e-commerce business[9]. - The group aims to optimize its leasing business structure and ensure sustainable development amid challenges in the financing leasing industry[56]. - The group continues to enhance its vinegar production and sales segment, focusing on brand penetration and expanding distribution channels[57]. Shareholder Information - Mr. Zhou Yongwei holds 124,143,908 shares, representing 45.98% of the total issued share capital[63]. - Septwolves Holdings owns 118,968,750 shares, accounting for 44.06% of the total issued share capital[63]. - Zijiang Capital has a beneficial ownership of 37,968,750 shares, which is 14.06% of the total issued share capital[63]. - The company did not recommend any interim dividend for the six months ended June 30, 2024[67]. Financial Reporting and Standards - The financial report was prepared in accordance with Hong Kong Accounting Standards and has been reviewed by an independent auditor[85]. - The report indicates that the company has not applied any new accounting standards or interpretations that have not yet come into effect during the reporting period[86].

Financial Performance - For the year ended December 31, 2023, the company's revenue was RMB 36,027,000, representing a 28% increase from RMB 28,172,000 in 2022[8] - The company reported a loss before tax of RMB 16,459,000 for 2023, slightly improved from a loss of RMB 16,971,000 in 2022[8] - The net loss for the company was approximately RMB 16.1 million for the year ended December 31, 2023, compared to a net loss of RMB 26.3 million for the previous year[21] - Revenue increased from RMB 281.72 million in 2022 to RMB 360.27 million in 2023, a growth of 27.8%[60] - The company recorded a loss of RMB 16.1 million for the year ended December 31, 2023, a significant decrease from a loss of RMB 26.3 million for the year ended December 31, 2022, primarily due to a reduction in income tax expenses by approximately RMB 9.7 million[74] Assets and Liabilities - Total assets decreased to RMB 278,819,000 in 2023 from RMB 318,957,000 in 2022, indicating a decline of approximately 12.6%[8] - The total liabilities of the company significantly decreased to RMB 39,889,000 in 2023, down from RMB 63,868,000 in 2022, a reduction of about 37.5%[8] - The company's cash and cash equivalents decreased from RMB 70.1 million as of December 31, 2022, to RMB 13.6 million as of December 31, 2023, representing a decrease of RMB 56.5 million[82] - The total current liabilities decreased from RMB 58.1 million as of December 31, 2022, to RMB 30.6 million as of December 31, 2023, mainly due to a reduction in borrowings by RMB 27.9 million[83] - The company's total assets decreased from RMB 255.1 million as of December 31, 2022, to RMB 238.9 million as of December 31, 2023, primarily due to a decrease in total assets[84] Revenue Streams - The company’s financing leasing services generated revenue of RMB 2.7 million, accounting for 7.6% of total revenue for the year ended December 31, 2023[22] - Revenue from the sale of vinegar and other condiments was RMB 6.9 million, accounting for 19.1% of total revenue for the year ended December 31, 2023[38] - Revenue from the sale of packaging and paper products was RMB 21.0 million, making up 58.2% of total revenue for the year ended December 31, 2023[42] - The total revenue from factoring services for the year ended December 31, 2023, was RMB 4.6 million, accounting for 12.8% of total revenue[28] Operational Efficiency - The company plans to accelerate its pace in response to the increasing demands for operational efficiency and regulatory compliance in 2024[14] - The average monthly balance of receivables from direct financing leases decreased from RMB 9.214 million in 2022 to RMB 1.418 million in 2023[23] - The average monthly balance of receivables from sale-leaseback transactions decreased from RMB 60.123 million in 2022 to RMB 28.813 million in 2023[23] - The average monthly balance of receivables from factoring services increased to RMB 87.6 million in 2023 from RMB 76.2 million in 2022, reflecting a growth of approximately 15.5%[30] Market Expansion and Strategy - The company aims to expand its leasing business in the second half of 2023, focusing on both new customer acquisition and collaboration with existing clients[11] - The company is actively exploring partnerships with major retail chains across various provinces in China to expand its market presence[12] - The vinegar market in China is expected to continue expanding, with room for growth in per capita consumption compared to the US and Japan[18] - The company aims to maximize production capacity and improve product diversity by introducing more condiments targeting different customer groups[107] Compliance and Governance - The company complied with all major regulatory capital requirements and borrowing restrictions applicable as of December 31, 2023[46] - The company has maintained compliance with regulations regarding foreign investment leasing companies throughout the fiscal year[48] - The company has confirmed compliance with the GEM Listing Rules regarding related party transactions during the reporting period[193] - The company has complied with the corporate governance code throughout the reporting period[181] Challenges and Risks - The financing leasing business continues to face significant challenges due to regulatory changes and monetary credit policy adjustments, prompting the company to prioritize risk management and optimize business processes[108] - Credit risk is identified as a significant inherent risk, stemming from clients' inability or unwillingness to repay financial obligations[141] - Liquidity risk is highlighted, indicating potential challenges in meeting financial obligations due to mismatches in the timing of financial assets and liabilities[142] - The company’s operations and assets are primarily concentrated in China, making it vulnerable to adverse political, economic, or social changes in the region[143] Future Outlook - The company is optimistic about its overall business performance in 2023, anticipating opportunities to enhance performance and returns in 2024[108] - The company provided an optimistic outlook for the next quarter, projecting revenue growth of A% and an increase in user engagement metrics[116] - Strategic acquisitions are being considered to enhance the company's capabilities and market reach, with potential targets identified[116] Management and Structure - The company has a strong management team with extensive experience in finance and investment management[123] - The financial manager has been with the company since May 2012, indicating stability in financial oversight[123] - The board of directors includes independent non-executive directors responsible for compliance and corporate governance oversight[121] Investments and Capital Expenditures - The company's capital expenditures for the year ended December 31, 2023, were RMB 37.84 million, a significant decrease from RMB 271.16 million in 2022[94] - The company has no future plans for investments or external financing beyond bank loans obtained from commercial banks[101] - The company entered into a construction contract on December 27, 2023, for a vinegar production plant with a contract value of RMB 29 million[98]

Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue was RMB 36,027,000, showing a significant increase from RMB 28,172,000 in 2022, representing a growth of approximately 27.7%[11] - The company reported a loss of RMB 16,133,000 for the year, which is an improvement compared to a loss of RMB 26,321,000 in 2022, indicating a reduction in losses by about 38.8%[11] - Revenue increased from RMB 28.2 million for the year ended December 31, 2022, to RMB 36.0 million for the year ended December 31, 2023, representing a growth of approximately 27.5%[24] - Net loss decreased from RMB 26.3 million for the year ended December 31, 2022, to RMB 16.1 million for the year ended December 31, 2023, showing an improvement of about 38.5%[24] - Total revenue increased from RMB 281.72 million in 2022 to RMB 360.27 million in 2023, representing a growth of approximately 28%[63] Assets and Liabilities - Total assets decreased to RMB 278,819,000 in 2023 from RMB 318,957,000 in 2022, reflecting a decline of approximately 12.6%[11] - Total liabilities significantly reduced to RMB 39,889,000 in 2023, down from RMB 63,868,000 in 2022, marking a decrease of about 37.5%[11] - The net asset value of the company was RMB 238,929,000 in 2023, down from RMB 255,089,000 in 2022, which is a decline of approximately 6.3%[11] - The company's asset-liability ratio improved from 0.12 in 2022 to 0.04 in 2023, indicating a stronger financial leverage position[66] Revenue Sources - The company generated RMB 4.6 million in revenue from factoring services for the year ended December 31, 2023, accounting for 12.8% of total revenue[31] - Revenue from the sale of vinegar and other condiments for the year ended December 31, 2023, was RMB 6.9 million, accounting for 19.1% of total revenue[41] - Revenue from the sale of packaging and paper products was RMB 21.0 million, representing 58.2% of total revenue for the year ended December 31, 2023[45] Operational Strategy - The company aims to enhance its market presence and expand its operations in response to the recovering global economy and domestic reforms[13] - The management highlighted the importance of technological innovation and structural optimization to boost confidence and mitigate risks in the current economic environment[13] - The company plans to continue its efforts in macroeconomic adjustments and expanding domestic demand to support its growth strategy moving forward[13] - The company is actively seeking opportunities to expand into other business areas while continuing to focus on its financing leasing and factoring services[23] Risk Management - The company implemented a comprehensive risk management system, including strict procedures for credit assessment and due diligence before entering financing lease agreements[74] - The financing leasing business continues to face significant restrictions and challenges due to regulatory changes and monetary credit policy adjustments[111] - The company has significant credit risk due to its focus on providing equipment financing solutions to small and medium-sized enterprises and individual entrepreneurs[144] - Liquidity risk is a concern for the company, as it may face difficulties in meeting financial obligations when liabilities are due[145] Corporate Governance - The board of directors confirmed the accuracy and completeness of the financial information presented in the report, ensuring no misleading elements were included[4] - The company has a strong governance framework, adhering to relevant laws and regulations in both China and Hong Kong[139] - The company emphasizes compliance and corporate governance as key areas of focus for its operations[118][121] Market Outlook - The company expresses optimism about its overall business performance in 2023, anticipating readiness to seize suitable opportunities in 2024[111] - The paper industry is expected to stabilize and recover as global trade is projected to grow by 3.3% in 2024[20] - The group believes that vinegar has a vast market potential in China, with a focus on enhancing the brand awareness of Yongchun aged vinegar, one of China's four famous vinegars[110] Legal and Compliance - The company has initiated legal proceedings to recover overdue debts from 12 customers involved in 19 default agreements[70] - There are currently 9 pending legal cases initiated by the company, which are not expected to have a significant adverse impact on its business or financial condition[185] - The board confirmed that they are not aware of any circumstances requiring disclosure under GEM listing rules as of December 31, 2023[152] Management and Team - The company has a strong management team with extensive experience in finance and investment management[120][122] - The management team has a diverse educational background, including degrees in economics, finance, and management[120][124] - The company has been expanding its board with experienced independent directors to enhance governance[121][124]

Revenue Performance - Revenue increased from RMB 22.8 million for the nine months ended September 30, 2022, to RMB 25.0 million for the nine months ended September 30, 2023, representing a growth of approximately 9.6%[6] - For the nine months ended September 30, 2023, total revenue reached RMB 25,000,210, an increase from RMB 22,820,281 in the same period of 2022, representing a growth of approximately 5.16%[77] - For the three months ended September 30, 2023, total revenue was RMB 8,135,291, an increase of 66.5% compared to RMB 4,881,806 for the same period in 2022[58] - Revenue from financing services was RMB 5.6 million for the nine months ended September 30, 2023, while revenue from vinegar and other condiments was RMB 2.7 million, contributing 10.9% to total revenue[6] - Revenue from packaging and paper products trade was RMB 16.6 million, accounting for 66.6% of total revenue for the nine months ended September 30, 2023[15] - Revenue from the sale of packaging and paper products was RMB 16,642,057 for the nine months ended September 30, 2023, compared to RMB 11,638,419 in 2022, marking a significant increase of 43.0%[77] Net Loss and Financial Performance - Net loss decreased from RMB 15.2 million for the nine months ended September 30, 2022, to RMB 11.6 million for the nine months ended September 30, 2023, a reduction of about 23.7%[6] - The net loss for the nine months ended September 30, 2023, was RMB 11,619,316, a decrease of 23.5% from RMB 15,231,325 in the same period of 2022[59] - The company reported a net loss of RMB 4,150,836 for the three months ended September 30, 2023, compared to a net loss of RMB 1,860,463 for the same period in 2022, representing an increase in loss of 122.4%[59] - The company reported a net loss before tax of RMB 10,470,752 for the nine months ended September 30, 2023, compared to a loss of RMB 7,110,694 in the previous year[77] - The company recorded a significant impairment loss of RMB 1,430,375 for the three months ended September 30, 2023, compared to a gain of RMB 362,711 in the same period of 2022[82] Operating Expenses - Operating expenses increased from RMB 8.3 million for the nine months ended September 30, 2022, to RMB 9.7 million for the nine months ended September 30, 2023, primarily due to an increase in employee costs and R&D expenses[21] - Sales expenses increased from RMB 1.5 million for the nine months ended September 30, 2022, to RMB 7.4 million for the nine months ended September 30, 2023, primarily due to the commencement of production and sales of vinegar and other condiments[24] - Operating expenses for the nine months ended September 30, 2023, totaled RMB 9,727,559, compared to RMB 8,265,572 in the same period of 2022, indicating an increase of 17.7%[77] - Employee costs for the three months ended September 30, 2023, totaled RMB 2,102,904, up 47.5% from RMB 1,425,225 in the same period of 2022[82] Tax and Interest Expenses - Interest expenses decreased from RMB 2.7 million for the nine months ended September 30, 2022, to RMB 0.9 million for the nine months ended September 30, 2023, due to a reduction in average loan balances[20] - Income tax expenses decreased from RMB 8.1 million for the nine months ended September 30, 2022, to RMB 1.1 million for the nine months ended September 30, 2023, due to the inability to confirm certain impairment losses for tax deduction[25] - The income tax expense for the three months ended September 30, 2023, was RMB 809,590, a decrease of 22.3% from RMB 1,041,062 in the same period of 2022[83] - The company experienced a decrease in the provision for current income tax for the nine months ended September 30, 2023, amounting to RMB 603,031, down from RMB 902,088 in the same period of 2022[83] Production and Market Expansion - The company has begun orderly production and sales of its self-produced products under the "Qiaoxin 1950" brand as of September 30, 2023[11] - The first phase of the company's factory has completed most of its fixed asset investments, with an annual production capacity of 10,000 tons of Yongchun old vinegar, ranking among the top factories in China[29] - The company is actively expanding its sales channels across six provinces in China, focusing on the Minnan market for sales and marketing efforts in the next fiscal year[31] - The company plans to utilize e-commerce platforms and new media for product marketing, aiming to significantly increase product visibility and reach a broader customer base[31] - The company is focusing on expanding its market presence in China through its diversified product offerings and strategic partnerships[74] Share Option Plan and Dividends - The company has adopted a share option plan effective from June 20, 2018, for a duration of 10 years, expiring on June 20, 2028[40] - The maximum number of shares that may be issued upon exercise of all outstanding options under the share option plan and any other plans shall not exceed 30% of the issued shares from time to time[42] - As of September 30, 2023, the company has no unexercised options under the share option plan[45] - The board does not recommend the payment of any dividends for the nine months ended September 30, 2023[46] - The company did not declare any dividends for the nine months ended September 30, 2023, consistent with the same period in 2022[87] Shareholder Information - As of September 30, 2023, major shareholders include Zhou Yongwei with 124,143,908 shares (45.98%) and Septwolves Holdings with 118,968,750 shares (44.06%)[54] - Total equity attributable to equity shareholders as of September 30, 2023, was RMB 241,094,947, a decrease from RMB 263,862,815 as of September 30, 2022[90] - The company has a total of 27,000,000 options available for grant, representing 10% of the total issued shares[42] - The maximum number of shares that may be issued in any 12-month period due to the exercise of options granted shall not exceed 1% of the issued shares at the end of that 12-month period[42] - The board has absolute discretion to determine the exercise price of the options, which cannot be lower than the closing price on the grant date[45] - No options have been granted, exercised, canceled, or lapsed since the adoption of the share option plan[45] - As of September 30, 2023, the company is not aware of any other individuals or entities holding interests that require disclosure under the Securities and Futures Ordinance[56] Comprehensive Income - Total comprehensive loss for the nine months ended September 30, 2023, was RMB 11,656,629, a decrease of 24.5% from RMB 15,467,922 in the same period of 2022[61] - The company reported a total comprehensive loss of RMB 11,691,764 for the nine months ended September 30, 2023, compared to a loss of RMB 15,534,275 for the same period in 2022[90] - Other comprehensive income for the three months ended September 30, 2023, included a foreign exchange loss of RMB (14,200) compared to RMB (76,265) for the same period in 2022[61]