Financial Performance - The company recorded a loss for the first time since its listing due to significant negative impacts from the COVID-19 pandemic, particularly affecting its major client, Daxinhua Airlines[14]. - Revenue decreased from approximately RMB 196.6 million in 2019 to approximately RMB 176.1 million in 2020, a decline of about 10.4% due to COVID-19 impact and reduced loan agreements[24]. - The company recorded a loss attributable to owners of approximately RMB 106.8 million in 2020, compared to a profit of RMB 41.4 million in 2019[34]. - Cash and cash equivalents increased to approximately RMB 118.6 million in 2020 from RMB 42.7 million in 2019[36]. - The debt-to-equity ratio improved to approximately 75.0% in 2020 from 91.5% in 2019 due to early repayment of bank borrowings[39]. - Other income increased by approximately RMB 3.7 million or 38.5% to RMB 13.4 million in 2020, mainly from dividend income[27]. - The board did not recommend a final dividend for the year ended December 31, 2020, compared to 5 HK cents in 2019[35]. - As of December 31, 2020, accounts receivable and loans amounted to approximately RMB 1,006.5 million, a decrease from RMB 1,524.9 million in 2019, primarily due to an additional expected credit loss provision of approximately RMB 167.7 million for a defaulting airline customer, Daxinhua Airlines[40]. - The total expected credit loss provision for Daxinhua Airlines as of December 31, 2020, was approximately RMB 183.2 million, compared to RMB 15.5 million in 2019[40]. - The company did not recommend a final dividend for the year ended December 31, 2020, compared to a dividend of HKD 0.05 per share in 2019[153]. Business Strategy - The company plans to focus on providing flexible financing lease services to small and micro enterprises in the Greater Bay Area, particularly in manufacturing cities like Shenzhen, Dongguan, Guangzhou, and Foshan[19]. - The company will adjust its small loan business focus from credit loans to mortgage loans, targeting property owners in Shenzhen and surrounding areas[14]. - The acquisition of the remaining shares of Shenzhen Haosen Microfinance Co., Ltd. will make it a wholly-owned subsidiary, enhancing the company's microfinance business development[14]. - The company aims to strengthen resource allocation and leverage synergies among subsidiaries to maintain steady growth amid a complex economic environment[15]. - The company will explore the secondary mortgage loan business in Shenzhen's real estate sector, aligning with the new Civil Code and mortgage system in China[19]. - The company aims to expand its customer base by providing flexible financing services to potential clients across various industries[19]. - In 2021, the group will focus on financing lease business for SMEs in the Greater Bay Area and mortgage business for real estate, while maintaining a prudent approach to cost control[73]. - The group aims to enhance its risk management capabilities and develop business with high-quality clients in potential growth industries[73]. - The company plans to improve internal information systems to enhance risk management capabilities and implement effective cost control measures[73]. - The main customer base is concentrated in China, and the company will remain flexible in adjusting its business strategies based on customer conditions[73]. Corporate Governance - The company emphasizes the importance of good corporate governance for sustainable development and will continue to optimize governance practices[15]. - The company is committed to implementing good corporate governance and has established procedures in line with the corporate governance code principles as per the listing rules[102]. - The board has fulfilled its corporate governance responsibilities, including reviewing and monitoring the training and continuous professional development of directors and senior management[102]. - The independent non-executive directors provide independent judgment on the company's strategy, performance, resources, and code of conduct[91][92]. - The company has a diverse board with members possessing expertise in finance, law, and corporate governance, contributing to effective decision-making[91][92][99]. - The board of directors consists of 3 executive directors, including the chairman and CEO, and 3 independent non-executive directors, ensuring a balanced governance structure[106]. - The company has established a code of conduct and compliance manual applicable to employees and directors[102]. - The board regularly reviews the company's compliance with the corporate governance code and discloses this in the corporate governance report[102]. - The company has established a remuneration committee and a nomination committee to enhance corporate governance practices[115]. - The company plans to continue reviewing the board composition periodically to ensure effective governance[106]. Risk Management - The company has implemented a risk management system to mitigate operational risks, including a top-level risk control committee and various departments for risk assessment and management[48]. - The company has a dedicated risk management department to oversee and manage potential risks[94]. - The board confirmed the effectiveness of the risk management and internal control systems, ensuring minimal operational risks[139]. Employee Compensation - Employee benefits expenses increased by approximately RMB 9.2 million or 40.7% to RMB 31.9 million in 2020, primarily due to stock options granted and increased commissions[28]. - Employee benefit expenses, including director remuneration, were approximately RMB 31.9 million for the year ended December 31, 2020, up from RMB 22.6 million in 2019, primarily due to commissions aimed at stimulating growth in the securities trading business[48]. - The company has adopted a share option plan allowing for the issuance of up to 15,552,300 shares to reward employees and align their interests with the company[53]. - A total of 10,200,000 stock options were granted on January 22, 2020, with an exercise price of HKD 6.12, valid until January 21, 2023[55]. - As of December 31, 2020, no stock options had been exercised from the 10,200,000 granted[55]. - The company adopted a share incentive plan on November 6, 2019, effective for 10 years until November 6, 2029[64]. - The stock options granted on April 24, 2019, included 10,075,000 options with an exercise price of HKD 7.00, valid until April 23, 2022[54]. - As of December 31, 2020, there were 2,872,000 unexercised stock options remaining[60]. - The share incentive plan aims to reward employees for their contributions and encourage retention[64]. - The company has not issued any shares or granted any rewards under the share incentive plan since its adoption[65]. Shareholder Information - The company has a significant shareholder, Fudeng Investment Limited, holding 101,974,000 shares, representing 65.57% of the total issued share capital[181]. - Mr. Lu Weihao, the beneficial owner of Fudeng Investment Limited, is also noted to have a direct interest in the same number of shares, 101,974,000, equating to 65.57%[181]. - China Export-Import Bank holds 10,000,000 shares, which accounts for approximately 6.43% of the company's issued share capital[181]. - Mr. Xie Weiquan holds 360,000 shares, representing 0.23% of the total issued share capital[176]. - The company has confirmed compliance with the non-competition agreement as of December 31, 2020, with no violations reported[192]. - The company has established a non-competition agreement with its controlling shareholders to prevent any competition with its business operations[187]. - The company has confirmed that all related party transactions are exempt from the disclosure requirements under the Listing Rules[183]. - The company encourages shareholders to attend and participate in annual general meetings, with relevant information provided at least 30 days prior to the meeting[144].
浩森金融科技(03848) - 2020 - 年度财报