Revenue and Profitability - For the six months ended June 30, 2019, the group's revenue increased by approximately 138.4% to RMB 856 million from RMB 359 million for the same period in 2018[16]. - Profit attributable to shareholders rose from approximately RMB 8.6 million to approximately RMB 9.3 million for the same period, driven by loan intermediary income and interest from the acquisition of Shenzhen Haosen[24]. - Revenue for the six months ended June 30, 2019, was RMB 85,637,000, an increase of 138% compared to RMB 35,895,000 for the same period in 2018[76]. - Total comprehensive income for the period was RMB 13,098,000, up from RMB 8,914,000 in 2018, marking a 47% increase[76]. - The company’s total liabilities decreased by RMB 210,201,000 due to loan repayments[92]. Expenses and Financial Costs - The group reported an increase in employee benefits expenses by approximately 113.0% to RMB 98 million for the six months ended June 30, 2019, due to the expansion of the workforce following the acquisition of Shenzhen Haosen[18]. - Financial costs increased from approximately RMB 15.8 million for the six months ended June 30, 2018, to approximately RMB 36.3 million for the six months ended June 30, 2019, due to newly raised borrowings and bills payable[20]. - Other operating expenses amounted to approximately RMB 191 million for the six months ended June 30, 2019, representing about 22.3% of total revenue, compared to 10.4% for the same period in 2018[19]. Acquisitions and Business Expansion - The acquisition of Shenzhen Haosen Microfinance Co., Ltd. contributed to an increase in revenue from loan intermediary services and loan interest income[12]. - The board anticipates that the acquisition of Huitong Financial Group Limited, completed on July 5, 2019, will enhance revenue sources and allow for expansion in the Hong Kong financial market[12]. - The company completed the acquisition of 100% equity in Huitong Financial Group on July 5, 2019, which is expected to diversify its business portfolio and expand operations in the Hong Kong financial market[48]. Risk Management - The group adopted a cautious approach to risk control when signing new contracts with potential clients due to the negative impact of the Chinese financial market[11]. - The group has implemented a risk management system to mitigate operational risks, including a top-level risk control committee and various departments for risk assessment[32]. - The company plans to continue strengthening risk management capabilities and developing business with high-quality clients in a challenging environment[53]. Cash Flow and Liquidity - Cash and cash equivalents decreased to approximately RMB 39.8 million as of June 30, 2019, down from approximately RMB 61.2 million as of December 31, 2018[26]. - The net cash used in operating activities was RMB 64,962,000, primarily due to changes in working capital[92]. - The company incurred rental expenses of RMB 285 thousand to a related company, an increase from RMB 249 thousand in the previous year[161]. Shareholder Information and Corporate Governance - The major shareholder, Fudeng Investment Limited, holds 101,974,000 shares, representing 65.57% of the issued share capital[70]. - The company has adhered to all provisions of the corporate governance code as of June 30, 2019[56]. - The audit committee consists of three independent non-executive directors and reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2019[58]. Stock Options and Employee Incentives - The company has a stock option plan approved in June 2017, allowing for the issuance of up to 14,400,000 shares to incentivize employees and partners[40]. - The company granted a total of 4,320,000 stock options on July 4, 2018, with an exercise price of HKD 6.02, valid until July 4, 2019[41]. - As of June 30, 2019, there were 3,232,000 unexercised stock options remaining from the total of 11,163,000 options granted[45]. Financial Position and Assets - Total assets as of June 30, 2019, were RMB 1,282,770,000, compared to RMB 1,068,454,000 as of December 31, 2018, indicating a growth of 20%[81]. - The total amount of loans and receivables with no credit impairment was RMB 1,488,683 thousand, up from RMB 1,465,953 thousand as of December 31, 2018[148]. - The expected credit loss provision for loans and receivables was RMB 89,597,000 as of June 30, 2019, compared to RMB 78,452,000 as of December 31, 2018, indicating an increase of approximately 14.4%[137].
浩森金融科技(03848) - 2019 - 中期财报