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].
紫元元(08223) - 2020 - 年度财报