Business Overview - Guangdong Join-Share reported a stable outlook with an "AA+" corporate rating from Shenzhen Lianhe Credit Information Service Co., Ltd[7]. - The company has expanded its business network to cover all major cities in Guangdong province and certain cities in Anhui province since its establishment in 2003[5]. - Guangdong Join-Share primarily provides guarantees and entrusted loans to SMEs, with a focus on credit-based financing solutions[6]. - The company has established strong cooperative relationships with various banks and non-bank financial institutions, enhancing its leading position in the industry[7]. - The H shares of the company were successfully listed on the Main Board of the Stock Exchange of Hong Kong Limited on December 23, 2015, laying a solid foundation for future development[8]. - The company consolidated Foshan Chancheng Join-Share Micro Credit Co., Ltd. into its group in June 2014, expanding its micro-lending services[6]. - Guangdong Join-Share aims to ensure management independence and has a diverse shareholder base without a controlling shareholder[7]. - The management team possesses substantial expertise in finance, banking, accounting, and legal industries, contributing to the company's operational strength[7]. - The company has been focusing on providing financing solutions to small and medium-sized enterprises to meet their business needs[5]. Financial Performance - Total revenue for the year ended December 31, 2019, was approximately RMB 365.31 million, representing an increase of approximately 11.51% compared to the previous year[21]. - Net profit for the year was approximately RMB 142.95 million, with a net profit margin of 46.72%[21]. - Profit before taxation amounted to approximately RMB 193.20 million, representing a decrease of approximately 0.59% compared to the previous year[21]. - Profit attributable to equity shareholders of the Company was approximately RMB 133.16 million, an increase of approximately 6.45% compared to the previous year[22]. - The board recommended a final dividend of RMB 0.06 per share for the year ended December 31, 2019[22]. - Total assets as of December 31, 2019, were approximately RMB 3,191.77 million, an increase from RMB 3,034.38 million in the previous year[27]. - Total liabilities increased to approximately RMB 784.87 million from RMB 672.77 million in the previous year[27]. - Net assets as of December 31, 2019, were approximately RMB 2,406.90 million, compared to RMB 2,361.61 million in the previous year[27]. - Return on net assets was 6.0%, down from 7.0% in the previous year[27]. - Net profit margin decreased to 46.7% from 52.5% in the previous year[27]. Revenue and Income Sources - In 2019, the total revenue of the Group increased by approximately 11.51% year-on-year[48]. - As of December 31, 2019, the net balance of outstanding guarantees was approximately RMB 10,683.41 million, with net guarantee fee income of approximately RMB 187.19 million for the same period[56]. - The balance of entrusted loans as of December 31, 2019, was approximately RMB 182.44 million, with net interest income from SME lending business amounting to approximately RMB 87.78 million[62]. - The balance of micro-lending as of December 31, 2019, was approximately RMB 405.35 million, with a maximum lending limit of RMB 5.00 million per loan[58]. - Net guarantee fee income increased by approximately RMB22.85 million, or approximately 13.90%, to approximately RMB187.19 million in 2019 from approximately RMB164.34 million in 2018[78]. - Total guarantee fee income rose by approximately RMB29.49 million, or approximately 17.75%, to approximately RMB195.62 million in 2019 from approximately RMB166.13 million in 2018[78]. - Financing guarantee fee income increased by approximately RMB22.90 million or approximately 21.00% to approximately RMB131.93 million in 2019[78]. - Revenue from retail financing guarantee services surged by approximately RMB24.24 million or approximately 779.42% to approximately RMB27.35 million in 2019[78]. - Net interest income increased by approximately RMB9.54 million, or approximately 12.19%, to approximately RMB87.78 million in 2019 from approximately RMB78.24 million in 2018[79]. Strategic Initiatives and Future Plans - The Company aims to enhance comprehensive income by focusing on innovation, cost management, and optimizing management control in 2020[41]. - The Company emphasizes the importance of customer-oriented, problem-oriented, and goal-oriented approaches for business model innovation[41]. - The company aims to enhance its ability to support the real economy by improving credit structure and increasing the proportion of medium and long-term loans in 2020[119]. - The company plans to adopt innovative business models to alleviate financing difficulties for SMEs, including the launch of dedicated capital management products[124]. - The company will continue to improve integrated financial services by incorporating small loans, financial leasing, commercial factoring, and equity investment into its industry chain[125]. - The company focuses on integrating finance with industry and technology using Internet, big data, and blockchain to enhance service quality in the supply chain[126]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and market reach[163]. - A strategic partnership with a leading tech firm has been established to leverage technology in financial services[163]. - The company aims to improve operational efficiency by 15% through process optimization initiatives in 2020[163]. Management and Governance - The company highlighted the importance of SMEs in the modern economic system and the need for policies to reduce financing costs and improve access to financing[110]. - The company has a strong leadership team with diverse backgrounds in finance, management, and state-owned enterprise operations, enhancing its strategic capabilities[181]. - The board of directors includes professionals with extensive experience in both public and private sectors, ensuring a comprehensive understanding of market dynamics[189]. - The diverse expertise of the board members positions the company well for future growth and market expansion opportunities[180]. - The management team is committed to developing new products and technologies to meet evolving market demands[198]. Operational Challenges and Responses - The company is actively monitoring the impact of the COVID-19 pandemic on its financial position and operating results[150]. - Provisions for guarantee losses increased to approximately RMB2.44 million in 2019 from a write-back of approximately RMB5.06 million in 2018, due to an increase in outstanding financing guarantee balance by approximately RMB55.91 million or 2.16%[94]. - Impairment losses rose by approximately RMB40.60 million to approximately RMB58.31 million in 2019 from approximately RMB17.71 million in 2018, primarily due to increased losses on default guarantee payments and receivables from guarantee customers[95]. - Operating expenses increased by approximately RMB3.85 million or 3.21% to approximately RMB123.94 million in 2019, driven by a 12.76% increase in staff costs[100]. Human Resources - The total number of staff within the company increased from 298 as of December 31, 2018, to 302 as of December 31, 2019[155][157]. - For the year ended December 31, 2019, the company paid approximately RMB 76.90 million in employee remuneration[155].
中盈盛达融资担保(01543) - 2019 - 年度财报