Financial Performance - Revenue for the year ended December 31, 2018, was RMB 56,078,000, a decrease of 37.6% compared to RMB 89,822,000 in 2017[17] - Profit for the year decreased by 66.3% to RMB 5,281,000 from RMB 15,651,000 in the previous year[17] - Total comprehensive income for the year was RMB 8,003,000, a decline of 30.5% from RMB 11,522,000 in 2017[17] - Profit before taxation decreased by 28.3% to RMB 23,181,000 from RMB 32,343,000 in the previous year[17] - Basic earnings per share dropped to RMB 0.01, down 66.7% from RMB 0.03 in 2017[17] - The Group's total revenue for 2018 decreased to approximately RMB 61.0 million, and profit for the year was RMB 5.3 million[31] - The Group's total revenue for the year decreased to approximately RMB 61.0 million, while profit was approximately RMB 5.3 million[55] - Revenue from financial guarantee services increased significantly by approximately 365.5% to approximately RMB27.0 million in 2018, up from RMB5.8 million in 2017[80] - Revenue from non-financial guarantee services decreased by approximately 18.9% to approximately RMB4.3 million in 2018, down from RMB5.3 million in 2017[81] - Revenue from financial consultancy services decreased significantly by approximately 80.8% to approximately RMB5.6 million in 2018, compared to RMB29.2 million in 2017[83] - Revenue from financial leasing and factoring business increased by approximately RMB2.0 million to approximately RMB24.4 million in 2018, up from RMB22.4 million in 2017[89] Assets and Liabilities - Total assets increased by 86.9% to RMB 1,938,278,000 as of December 31, 2018, compared to RMB 1,037,051,000 in 2017[17] - Total equity as of December 31, 2018, was RMB 978,237,000, a slight increase of 1.9% from RMB 959,915,000 in 2017[17] - The Group's gearing ratio increased from approximately 8.0% as of December 31, 2017, to approximately 98.1% as of December 31, 2018, primarily due to an increase in total liabilities[112] - The Group's total liabilities increased due to liabilities from guarantees, pledge deposits payable, convertible bonds, and receipts in advance from partner companies[112] - Receivables from guarantee payments decreased from approximately RMB246.9 million as at 31 December 2017 to approximately RMB232.7 million as at 31 December 2018[106] Cash Flow and Financial Position - The cash and various bank deposits of the Group almost doubled from RMB 30 million on June 30, 2018, to December 31, 2018[31] - Cash and various bank deposits increased by approximately 105.7% from June 30, 2018, to December 31, 2018[55] - The increase in cash and bank deposits was mainly attributable to net cash inflow from a joint project and funds raised from the issuance of convertible bonds[110] - As of December 31, 2018, pledged bank deposits amounted to approximately RMB 86.2 million, a decrease of approximately RMB 9.3 million compared to the end of the previous year, while cash and bank deposits increased to approximately RMB 719.1 million, an increase of approximately RMB 679.7 million[110] Taxation and Expenses - The effective tax rate rose significantly to 77.2% in 2018 from 51.6% in 2017[19] - The cost to income ratio increased to 93.6% in 2018, compared to 58.5% in 2017[19] - Income tax for the year ended 31 December 2018 amounted to approximately RMB17.9 million, representing an increase of approximately 7.2% from approximately RMB16.7 million in 2017[106] - The Group's operating expenses slightly decreased to approximately RMB53.1 million in 2018 from approximately RMB53.2 million in 2017, with salaries and rent decreasing by 11.8% and 39.1% respectively[99] Business Strategy and Market Outlook - Looking forward to 2019, the Group anticipates challenges due to global economic uncertainties but aims to support micro, small, and medium-sized enterprises through financial inclusion[38] - The Group aims to provide integrated financing services to micro, small, and medium-sized enterprises through innovative products[39] - The Group will continue to strengthen traditional businesses such as financial leasing and guarantee services while exploring mergers and acquisitions[41] - The Group is focused on developing financial technology services to meet market demands[41] - The Group plans to expand its business in the Greater Bay Area by offering comprehensive financial services[44] - The Group is committed to enhancing its core competitiveness and maximizing returns for investors and shareholders[45] - The Group will continue to maintain the quality of traditional guarantee business, targeting small and medium-sized enterprises, while developing new products and enhancing risk management mechanisms[134] - The Group aims to enhance its strength through investments, mergers, and acquisitions to adapt to a more open financial system[142] - The Group will respond to national policies by promoting cooperation between banks and guarantee companies, providing integrated financing services[134] Share Options and Capital Management - The total number of shares subject to the options under the Pre-IPO Share Option Scheme is 10,000,000 Shares, representing approximately 1.91% of the issued Shares as of the date of this annual report[176] - 50% of the options shall vest and become exercisable on June 30, 2014; 30% on June 30, 2016; and 20% on June 30, 2018[176] - No options granted under the Pre-IPO Share Option Scheme had been exercised by the grantees in the year ended December 31, 2018[178] - The remaining life of the Pre-IPO Share Option Scheme is until November 5, 2023[178] - The company did not declare a final dividend for the year ended December 31, 2018[153] - As of December 31, 2018, the aggregate amount of distributable reserves was approximately RMB406.3 million[170]
中国金融发展(03623) - 2018 - 年度财报