Financial Performance - Total revenue for the year ended March 31, 2021, was HKD 15,821,000, a decrease of 42.7% compared to HKD 27,484,000 in 2020[10]. - The company reported a loss before tax of HKD (121,383,000) for the year, compared to a loss of HKD (65,936,000) in the previous year[10]. - Total assets decreased to HKD 846,967,000 in 2021 from HKD 915,084,000 in 2020, representing a decline of 7.4%[11]. - Total liabilities increased to HKD (956,957,000) in 2021 from HKD (899,802,000) in 2020, indicating a rise of 6.3%[11]. - The company reported a loss of approximately HKD 121.4 million for the year ended March 31, 2021, an increase of about 84.7% compared to a loss of approximately HKD 65.7 million for the same period last year, mainly due to increased impairment losses on financial assets[170]. - Other income for the group was approximately HKD 1.1 million, an increase of about 167.2% compared to approximately HKD 0.4 million for the same period last year, mainly due to increased government subsidies and the reversal of excess provisions for operating expenses[168]. - Financial costs decreased to approximately HKD 29.6 million, down about 1.6% from approximately HKD 30.1 million in the previous year, primarily due to a reduction in the principal amount of bank borrowings[169]. - Personnel costs for the reporting period were approximately HKD 6.0 million, down about 7.6% from HKD 6.5 million for the previous year, primarily due to a reduction in employee numbers[164]. - Other operating expenses increased to approximately HKD 11.1 million, up about 7.2% from HKD 10.3 million in the previous year, mainly due to increased expenses related to the recovery of lease receivables[165]. Corporate Governance - The company is committed to implementing good corporate governance and has adhered to most of the best practices outlined in the corporate governance code[37]. - The board of directors is composed of experienced individuals who hold regular meetings to discuss operational matters affecting the company[37]. - The company has appointed independent non-executive directors to provide oversight and independent opinions to the board[29][30][32]. - The company has a strong focus on strategic development and corporate governance, with key personnel having over 20 years of experience in capital markets and asset management[26]. - The company has established a trust that holds interests in shares, indicating a structured approach to shareholding and governance[23][24]. - The company has adopted a shareholder communication policy to ensure timely dissemination of financial reports and other corporate communications[78]. - The company has no chairman currently, but the board believes it can ensure a balanced distribution of power and authority through its operations[37]. - The company plans to timely arrange the election of a new chairman to strengthen its governance structure[37]. - The board reviews the effectiveness of the risk management and internal control systems at least annually[75]. - The company ensures compliance with corporate governance codes and has reviewed its governance policies and practices during the year[69]. Risk Management - The company is committed to maintaining long-term cooperative relationships with quality suppliers and contractors through open bidding processes[101]. - The company has established a Risk Management Committee responsible for overseeing risk management policies and practices, including reviewing financing lease projects exceeding RMB 100 million[68]. - The board is responsible for maintaining effective risk management and internal control systems, with no significant risks or control deficiencies identified during the review period[75]. - The company’s credit risk management is crucial for its business sustainability, especially given the higher default risk among SMEs in China due to ongoing economic pressures[182]. Operational Strategy - The company plans to focus on recovering overdue financing lease receivables and expanding risk prevention coverage[16]. - The company is considering financing lease applications outside Hubei Province to diversify business risks[16]. - The automotive operating lease business is in the late stages of development, utilizing the company's national financing lease license[16]. - The company is actively evaluating financing lease applications, including two loans totaling RMB 154 million (approximately HKD 183 million) and two entrusted loans totaling RMB 1,000 million (approximately HKD 1,190 million) from borrowers outside Hubei Province[195]. - The company is in the late stages of establishing its automotive operating lease business in China[197]. - The company has not entered into new financing lease agreements since the first quarter of 2021, but the board believes that the financing lease business will improve as the overall economic environment in China and the global COVID-19 pandemic gradually improve[197]. Environmental and Social Responsibility - The company emphasizes sustainable development and integrates environmental and social factors into its management considerations[87]. - The company has established various policies to manage and monitor risks related to environmental, employment, operational practices, and community engagement[87]. - The company aims to provide a healthy and safe working environment and has implemented fair promotion mechanisms for employees[99]. - The company has implemented measures to enhance employee health and safety, adhering to relevant laws and regulations, with no work-related accidents reported during the reporting period[133]. - The company encourages the use of reusable utensils and environmentally friendly cleaning products in its operations[115]. - The company has not reported any violations of applicable environmental laws and regulations during the reporting period[107]. - The company has implemented energy-saving measures, including setting devices to energy-saving modes and encouraging the use of electronic media to reduce paper consumption[113]. - The company has established a quality management policy aimed at adding value to services provided, collecting customer feedback to improve service quality[140]. Shareholder Engagement - The company encourages shareholder participation in annual general meetings, where board members and external auditors are present to address shareholder inquiries[78]. - Shareholders holding at least 10% of the paid-up capital can request the board to convene a special general meeting[80]. - The company has conducted various investor activities, such as performance briefings, to enhance investor recognition[98].
融众金融(03963) - 2021 - 年度财报