Financial Performance - The company achieved operating revenue of RMB 790 million in 2018, representing a year-on-year growth of 29.9%[16] - Net profit for the year was RMB 23.2 million, reflecting a year-on-year increase of 12.0%[16] - Revenue increased from RMB 608 million for the year ended December 31, 2017, to RMB 790 million for the year ended December 31, 2018, representing a growth of approximately 29.8%[21] - Profit increased from RMB 207 million for the year ended December 31, 2017, to RMB 232 million for the year ended December 31, 2018, reflecting a growth of about 12.1%[21] - Revenue from financing leasing services was RMB 751 million, accounting for 95.2% of total revenue for the year ended December 31, 2018[22] - Revenue from consulting services for the year ended December 31, 2018, was RMB 34 million, accounting for 4.4% of total revenue, derived from a consulting agreement with a total investment of approximately RMB 1,142 million[39] - Total interest income rose to RMB 78.97 million in 2018 from RMB 60.81 million in 2017, with direct financing leases contributing RMB 12.31 million and sale-leaseback contributing RMB 62.83 million[69] - The company reported a significant decline in total revenue due to reduced activity in financing leases and consulting services, necessitating a strategic review of its service offerings and market approach[68] Assets and Liabilities - Total assets amounted to RMB 621.9 million, while total liabilities were RMB 461.4 million, resulting in a net asset value of RMB 160.5 million[10] - Cash and cash equivalents at the end of 2018 were RMB 98.6 million, up from RMB 11.2 million at the end of 2017[86] - Total current assets decreased from RMB 393.3 million as of December 31, 2017, to RMB 276.0 million as of December 31, 2018, primarily due to a reduction in receivables from finance leases by RMB 165.7 million[92] - Total liabilities decreased from RMB 277.3 million as of December 31, 2017, to RMB 198.8 million as of December 31, 2018, mainly due to a reduction in bank borrowings by RMB 25.0 million[93] - Net asset value increased from RMB 182.5 million as of December 31, 2017, to RMB 270.3 million as of December 31, 2018[93] Corporate Governance and Strategy - The company emphasizes good corporate governance, which is believed to create maximum benefits for shareholders[16] - The company adheres to a principle of prudent operation and risk prioritization in its business strategy[16] - The company has adopted corporate governance practices and risk management policies in line with GEM listing rules to enhance its corporate governance and internal controls[138] - The company aims to leverage international capital markets for higher quality development in the future[16] - The company plans to strengthen sales and marketing efforts in major cities of the Yangtze River Delta and Pearl River Delta regions[21] Risk Factors - The company faces significant credit risk due to its focus on providing equipment financing solutions to SMEs and individual entrepreneurs[173] - The company is exposed to liquidity risk, which may arise from mismatches in the timing of financial asset and liability maturities[174] - The company’s operations and assets are primarily concentrated in China, making it vulnerable to adverse political, economic, or social changes in the region[175] Employee and Operational Insights - As of the report date, the company has 28 full-time employees, all based in China, and is committed to ongoing employee training and development[128] - The company has maintained the required public float since its listing date according to GEM listing rules[193] Future Outlook - The company plans to expand its financing leasing and factoring businesses, leveraging its established mechanisms and mature teams[129] - The company provided guidance for the next fiscal year, projecting revenue growth of A% and an expected total revenue of $B million[154] - New product launches are anticipated to contribute an additional $C million in revenue, with a focus on expanding the product line in the upcoming quarters[154] - Market expansion strategies include entering E new markets, which are expected to drive further growth and increase market share[154] Shareholder Information - The company proposed a final dividend of HKD 0.021 per share for the year ended December 31, 2018, subject to shareholder approval[187] - The company was incorporated in the Cayman Islands and listed on GEM on July 18, 2018, with a total of 67,500,000 shares issued at HKD 1.28 per share[190]