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积木集团(08187) - 2018 - 年度财报
JIMU GROUPJIMU GROUP(HK:08187)2019-03-28 09:27

Business Performance - The company has established over 40 branches in various regions of China since April 2018, achieving profitability in the loan brokerage segment[12]. - The footwear business segment recorded a loss for the year, prompting management to evaluate the long-term viability of the current business model[14]. - The company is optimistic about the future development of its loan brokerage business and plans to allocate more resources when appropriate[12]. - The footwear business revenue decreased by 48.0% from approximately HKD 236,700,000 in 2017 to about HKD 123,100,000 in 2018, primarily due to global economic uncertainties[23]. - The loan brokerage service contributed approximately HKD 96,200,000 in revenue in 2018, marking a significant entry into the market since its launch in April 2018[25]. - In 2018, the company recorded revenue of approximately HKD 219,400,000, a slight decrease of 7.3% compared to HKD 236,700,000 in 2017[21]. - The company reported a loss of approximately HKD 4,000,000 in 2018, an improvement from a loss of HKD 9,000,000 in 2017[33]. - The loan brokerage service division achieved a profit of approximately HKD 24,300,000 in 2018, driven by strong demand and foundational work laid in previous months[33]. Economic Environment - The global economic environment remains challenging due to factors such as Brexit and the US-China trade war, impacting customer confidence and profit margins in the footwear industry[14]. - The company expects 2019 to be a challenging year due to ongoing economic weakness, but remains optimistic about opportunities arising from government support for financial services in rural areas[20]. - Cost control measures are being implemented to navigate the anticipated challenges in 2019[12]. Employee and Operational Changes - Employee benefits expenses increased from approximately HKD 20,900,000 in 2017 to about HKD 77,700,000 in 2018, mainly due to an increase in staff for the loan brokerage business[28]. - The total number of employees increased from approximately 70 to about 750, primarily due to the launch of loan brokerage services in April 2018[46]. - The company has been actively recruiting experienced footwear technicians to better understand customer requirements and standards[69]. Financial Position - Total borrowings as of December 31, 2018, were approximately HKD 17,400,000, down from HKD 31,300,000 in 2017[34]. - The current ratio as of December 31, 2018, was approximately 1.8, compared to 1.5 in 2017, indicating improved liquidity[34]. - As of December 31, 2018, the group's net current assets were approximately HKD 48.9 million, an increase from HKD 38.9 million in 2017[35]. - Other income increased from approximately HKD 3,000,000 in 2017 to about HKD 4,500,000 in 2018, primarily due to an increase in commission income[27]. - The group's pledged bank deposits amounted to approximately HKD 100,000, a significant decrease from HKD 15.2 million in 2017[36]. - Trade receivables were approximately HKD 3.6 million, down from HKD 10.6 million in 2017[36]. Corporate Governance - The company has adopted the corporate governance code as per the GEM Listing Rules and has complied with all applicable code provisions, except for a few deviations[155]. - The board of directors includes a mix of executive, non-executive, and independent non-executive directors, ensuring diverse governance[163]. - The company has established a risk management committee to monitor and assess risks related to sanctions, ensuring compliance with international regulations[139]. - The company has a remuneration committee to review the compensation policy for directors and senior management based on performance and market standards[142]. - The audit committee consists of four members, all of whom are independent non-executive directors, ensuring impartial oversight of financial reporting[171]. - The board has established specific committees to oversee various aspects of the company's affairs, ensuring adequate resources are provided for their responsibilities[169]. Strategic Decisions and Future Plans - The company is continuously evaluating its business objectives and may revise plans based on market conditions[80]. - The company has engaged in a strategic decision to allocate approximately HKD 3,000,000 from the net proceeds of a placement for the purchase of two vehicles in Hong Kong[82]. - The company has not been able to identify suitable licenses, resulting in a remaining balance of HKD 21.9 million from the planned expenditures[79]. - The company has established a three-year service agreement for its executive directors, which can be terminated with a three-month notice[160]. Shareholder Information - The board does not recommend the payment of a final dividend for the year ended December 31, 2018, consistent with the previous year[89]. - Jimu Group Holdings Limited holds a beneficial interest in 350,400,000 shares, representing 73% of the company's equity[119]. - The company has no provisions for preemptive rights for existing shareholders to purchase new shares according to its articles of association or Cayman Islands law[111]. Risk Management - The company has implemented a corporate governance framework to ensure effective internal controls and risk management, based on the COSO framework[197]. - The effectiveness of the risk management framework is evaluated at least once a year, with regular management meetings to update on risk monitoring activities[199]. - The company currently does not have an internal audit function, opting for external independent professionals to fulfill this role due to cost-effectiveness considerations[200].