Financial Performance - The Group recorded a loss of RMB 31,204,000 for the year 2020, compared to a profit of approximately RMB 25,004,000 in 2019, marking a significant decline in performance[16] - Revenue for the year dropped by 34% compared to the same period last year, while cost of sales and total expenses rose by 12%[16] - The Group recorded total revenue of approximately RMB 85,535,000 for the year ended December 31, 2020, a decrease of 34% compared to RMB 129,675,000 in 2019[35] - Revenue from the provision of technical support services decreased by 27% year-on-year, significantly impacting overall revenue[38] - The Group reported a loss of approximately RMB 31,204,000 for the year ended December 31, 2020, compared to a profit of approximately RMB 25,004,000 in 2019, primarily due to a significant revenue decline from the Covid-19 pandemic[44] - The group recorded a segment loss of approximately RMB31.15 million for 2020, compared to a profit of approximately RMB30.89 million in 2019[82] - The loss attributable to shareholders for the year ended December 31, 2020, was RMB (31,204,000), compared to a profit of RMB 25,004,000 in 2019[141] - Total assets decreased to RMB 151,196,000 in 2020 from RMB 192,474,000 in 2019, representing a decline of approximately 21%[141] - Total liabilities decreased to RMB (85,448,000) in 2020 from RMB (95,522,000) in 2019, a reduction of about 10.7%[141] - Net assets decreased to RMB 65,748,000 in 2020 from RMB 96,952,000 in 2019, reflecting a decline of approximately 32%[141] Operational Challenges - The Group's growth over the past five years was entirely wiped out due to the substantial suspension of banking operations and disruptions caused by COVID-19 outbreaks[16] - The Group's performance was impacted by the suspension or closing of branches, shopping malls, and stores during the pandemic[17] - The Group's business operations were severely affected by the global financial crisis, leading to intermittent business activities[16] - The Group aims to deepen overall process development by collaborating with banks and third parties[17] Cost Management - Cost of sales increased by 6% to approximately RMB 78,776,000, primarily due to rising staff costs, resulting in a gross profit margin of 8%, down from 42% in 2019[39] - Administrative expenses rose by 9% to approximately RMB 15,797,000, attributed mainly to increased staff costs[42] - Research and development costs increased by 439% to approximately RMB 9,388,000, reflecting a shift to expensing all incurred costs during the year[43] - The Group will continue to implement stringent cost control measures and strengthen risk management across its various businesses[26] - The Group plans to enhance sales and strengthen cost control measures, expecting improved financial results in the coming year as products mature in the market[52] Strategic Initiatives - The Group's "Payment plus Service" department shifted its focus online, launching WeChat Pay and CCB payment channels, and introduced cloud-based MIS payment software[17] - The pandemic provided opportunities for small and medium-sized banks to develop mobile banking and payment processes, prompting the Group to focus on relevant business development in 2021[18] - The Group aims to expand its merchant service business and has increased its service coverage from 2 provincial bank branches to 15 provinces in 2020[23] - The Group plans to integrate banking outsourcing services and payment products to form a cohesive business portfolio for future development[23] - The Group is focusing on a core business strategy with two complementary products, particularly in the payment and service outsourcing sectors[24] Financial Stability - The Group maintained its financial stability by leveraging a strong record of payment collection from previous years[16] - Borrowings decreased by 7% to approximately RMB 63,789,000 as at 31 December 2020, down from approximately RMB 68,471,000 in 2019, mainly due to the repayment of unsecured director's loans[51] - The Group's cash and cash equivalents decreased to approximately RMB 58,358,000 as at 31 December 2020, from approximately RMB 76,170,000 in 2019, primarily due to a decrease in the collection of receivables[55] - The current ratio as at 31 December 2020 was approximately 3 times, down from approximately 5 times in 2019, indicating a decline in liquidity[55] - The gearing ratio increased to approximately 57% as at 31 December 2020, compared to approximately 50% in 2019, reflecting a higher level of debt relative to assets[67] Human Resources - Total staff costs for the year amounted to approximately RMB74.33 million, an increase from approximately RMB65.44 million in 2019[84] - As of December 31, 2020, the group had 965 employees, up from 850 employees in 2019[84] - The Group recognizes the importance of attracting and retaining key personnel, offering competitive remuneration packages[130][134] Risk Management - The Group faces various key risks including market risk, liquidity risk, operational risk, and investment risk, which could impact financial performance and business prospects[111][119][120][121] - Foreign exchange rate risk is present due to assets and liabilities denominated in Renminbi, HKD, and USD, with management monitoring exposure and considering hedging when necessary[117][122] - The Group actively manages interest rate risk for interest-sensitive products and investments through dynamic analysis and cost-effective measures[118][123] - Liquidity risk is managed by monitoring cash flows and maintaining adequate cash levels to meet obligations[119][124] - The Group is committed to enhancing IT security to mitigate risks from cyberattacks and data breaches, ensuring compliance with legal and industry standards[132][136] Compliance and Governance - There were no incidences of non-compliance with relevant laws and regulations during the year that significantly impacted business operations[107] - The Group maintains good relationships with business partners and banks, with no significant disputes reported during the year[109] - The Group collaborates with responsible suppliers to ensure quality goods at competitive prices through effective supply chain management[110] - The report indicates compliance with the Securities and Futures Ordinance regarding the disclosure of interests in shares[198] Shareholder Information - The Company does not recommend the payment of dividends for the year ended 31 December 2020[162] - The Company had no reserves available for distribution to equity as of 31 December 2020, consistent with 2019[180] - Goldcorp Industrial Limited and Great Song Enterprises Limited each hold 431,782,500 shares, representing 32.78% of the total shareholding[194] - Mdm Iu Pun holds a family interest of 581,466,500 shares, which is 44.14% of the total shareholding[194] - Mr. Hung Yung Lai has beneficial ownership of 76,901,500 share options, which correspond to the same number of underlying shares[195] - Ms. Li Kei Ling controls more than one third of the voting power of Great Song Enterprises Limited, which in turn holds more than one third of the voting power of Goldcorp Industrial Limited[199] - The directors or chief executives of the company were not aware of any other person with a 5% or more interest in the company's shares as of December 31, 2020[197]
新利软件(08076) - 2020 - 年度财报