Financial Performance - For the year ended December 31, 2020, the company recorded total interest income of approximately RMB 755 million, a decrease of 27.5% compared to RMB 1,042 million for the year ended December 31, 2019[12]. - The net profit after tax for 2020 was approximately RMB 367 million, down 26.7% from RMB 501 million in 2019[12]. - The company did not propose a final dividend for the year ended December 31, 2020, compared to a proposed dividend of RMB 0.025 per share in 2019[12]. - Profit after tax and total comprehensive income decreased by approximately 26.7% from about RMB 50.1 million in 2019 to approximately RMB 36.7 million in 2020[45]. - Income tax expenses decreased by approximately 29.2% from about RMB 17.8 million in 2019 to approximately RMB 12.6 million in 2020, mainly due to a reduction in profit before tax[44]. - The company’s auditor fees for the year ended December 31, 2020, totaled RMB 1,622,000, comprising RMB 1,604,000 for audit services and RMB 18,000 for non-audit services[143]. Loan and Asset Management - As of December 31, 2020, the outstanding loan balance (before impairment losses) was approximately RMB 932.7 million, an increase of 3.4% from RMB 901.6 million as of December 31, 2019[19]. - Total assets as of December 31, 2020, were approximately RMB 907.8 million, up 3.0% from RMB 881 million in 2019[19]. - The company's net asset value as of December 31, 2020, was approximately RMB 883.2 million, an increase of 2.5% from RMB 861.4 million in 2019[19]. - The total number of loans granted decreased to 633 in 2020 from 692 in 2019, with a notable decline in guaranteed loans from 662 to 555[27]. - The company maintained a high level of guaranteed loans, which constituted 96.0% of the total loan portfolio in 2020, compared to 95.1% in 2019[27]. - As of December 31, 2020, the total outstanding loans amounted to RMB 932,679 thousand, an increase from RMB 901,615 thousand as of December 31, 2019, representing a growth of approximately 3.0%[29]. Risk Management and Compliance - The company has established a risk management system that includes risk identification, assessment, and management, with no significant risks identified in the 2020 assessment[132]. - The internal control system aims to achieve operational effectiveness, reliability of financial reporting, and compliance with applicable laws and regulations[134]. - The board of directors is responsible for reviewing the effectiveness of the risk management and internal control systems annually, with no significant deficiencies identified in the latest review[142]. - The company has implemented measures to ensure the confidentiality of insider information and compliance with disclosure regulations[136]. - The company has complied with all relevant laws and regulations in China and Hong Kong as of December 31, 2020[157]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules for the year ending December 31, 2020[91]. - The board of directors is responsible for leading and controlling the company, aiming to develop the business and enhance shareholder value[93]. - The board consists of 7 members, including 3 independent non-executive directors, ensuring compliance with listing rules[95]. - The board held 4 meetings and 1 annual general meeting during the year ending December 31, 2020, with full attendance from all directors[106]. - The company has established a formal service agreement with each director, with a term of 3 years[96]. - All independent non-executive directors have confirmed their independence in accordance with listing rules[95]. Employee and Community Engagement - Total employee compensation for the year ended December 31, 2020, was approximately RMB 3.9 million, down from approximately RMB 4.8 million in 2019, mainly due to benefits from social insurance reductions related to the COVID-19 pandemic[61]. - The company has encouraged participation from employees, customers, suppliers, and stakeholders in community-benefiting environmental and social activities[62]. - The company made donations totaling RMB 50,000 during the year, compared to zero in 2019[183]. Strategic Initiatives - The company launched a digital financial product in 2020 to provide unsecured credit loans to qualified customers, enhancing risk management through digital technology[20]. - The COVID-19 pandemic has accelerated the digital transformation in the credit industry, prompting the company to launch a digital retail credit platform[64]. - The company aims to become a leading regional microfinance institution, focusing on short-term financing needs for SMEs and individual businesses[64]. - The company plans to continue expanding its loan business by leveraging profits from previous years to enhance its lending capacity[37]. Financial Health and Future Outlook - The company has confirmed that all directors and supervisors have adhered to the established trading code throughout the review year[92]. - The company has no significant investments or future plans for major capital assets as of December 31, 2020[49]. - The company has a capital debt ratio of 0.15% as of December 31, 2020, compared to not applicable in 2019[51]. - The company has strengthened its competitive advantage since its successful listing on the stock exchange in May 2017 and subsequent transfer of listing in July 2019[155]. - The financial summary of the company's performance over the past five fiscal years is available in the annual report[164].
泰和小贷(01915) - 2020 - 年度财报