Financial Performance - For the three months ended March 31, 2019, the company reported revenue from financing lease income of RMB 17,532,000, an increase of 18.9% compared to RMB 14,751,000 for the same period in 2018[8]. - The company's pre-tax profit for the same period was RMB 5,910,000, representing a 64.3% increase from RMB 3,597,000 in the prior year[8]. - The net profit attributable to the owners of the company for the three months was RMB 4,042,000, up 71.5% from RMB 2,355,000 in the previous year[8]. - Basic earnings per share increased to RMB 1.01, compared to RMB 0.79 for the same period in 2018, reflecting a growth of 27.8%[8]. - The total comprehensive income for the period was RMB 4,042,000, compared to RMB 2,355,000 in the same period last year, reflecting a growth of 71.5%[8]. - Revenue for the three months ended March 31, 2019, increased by approximately RMB 2.7 million or about 19% to approximately RMB 17.5 million, compared to RMB 14.8 million for the same period in 2018[52]. - The profit attributable to the owners of the company for the three months ended March 31, 2019, was approximately RMB 4.0 million, an increase from RMB 2.4 million for the same period in 2018, primarily due to increased revenue and reduced listing expenses[62]. Employee Costs - Employee costs rose significantly to RMB 3,634,000, compared to RMB 1,606,000 in the same period last year, indicating an increase of 126.5%[8]. - Total employee costs for the period amounted to RMB 3,634,000, up from RMB 1,606,000 in the previous year, indicating a significant increase of approximately 126.5%[39]. - Employee costs rose from approximately RMB 1.6 million to about RMB 3.6 million, an increase of 125% due to a rise in employee numbers and salaries[53]. Financing Costs - The company incurred financing costs of RMB 3,406,000, slightly up from RMB 3,190,000 in the previous year, marking a 6.8% increase[8]. - The group recognized interest expenses of RMB 3,406,000 for financing costs, compared to RMB 3,190,000 in the previous year, reflecting an increase of approximately 6.8%[33]. - The group’s total financing costs included interest on bank borrowings of RMB 564,000, up from RMB 468,000 in the previous year, reflecting an increase of approximately 20.5%[33]. - Financing costs increased from approximately RMB 3.2 million for the three months ended March 31, 2018, to approximately RMB 3.4 million for the same period in 2019, mainly due to interest expenses from interest-free deposits from finance lease customers rising from approximately RMB 2.5 million to RMB 2.8 million[59]. - The interest expense from bank borrowings increased from approximately RMB 0.5 million to approximately RMB 0.6 million for the same periods[59]. Taxation - The income tax expense for the period was RMB 1,868,000, compared to RMB 1,242,000 for the same period in 2018, marking an increase of approximately 50.5%[34]. - The group’s effective tax rate for its subsidiaries in China is 25% as per the Corporate Income Tax Law[35]. - The applicable corporate income tax rate for the company's subsidiaries in China is 25%[59]. Corporate Governance - The company maintains high standards of corporate governance, adhering to the GEM listing rules and ensuring proper regulatory oversight of business activities[81]. - The audit committee has reviewed the unaudited consolidated financial statements for the three months ended March 31, 2019, confirming compliance with applicable accounting standards and GEM listing rules[90]. - The audit committee is composed of experienced non-executive directors, ensuring appropriate professional qualifications[87]. - The company has adopted a code of conduct for directors' securities trading, confirming compliance by all directors as of March 31, 2019[86]. - The board believes that the dual role of the chairman and CEO does not impair the balance of power and authority within the company[83]. - The company has established a non-competition agreement with major shareholders, confirming no engagement in competing businesses[79]. - The company has confirmed that all major shareholders have complied with the non-competition commitments since the listing date[79]. - No significant competition or conflict of interest was reported among directors or major shareholders as of March 31, 2019[78]. Market Outlook and Strategy - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[8]. - The company is transitioning from traditional financing leasing to technology-driven financing leasing, leveraging fintech and big data applications to enhance competitiveness in the leasing industry[51]. - The future outlook for the financing leasing market in China is promising, driven by policy support for SMEs and the growing demand for financing solutions[48]. - The company has established connections with approximately 368 small and medium-sized enterprise clients across 28 provinces, cities, and autonomous regions in China[47]. Other Financial Information - The group did not recommend any interim dividend for the three months ended March 31, 2019, consistent with the previous year[40]. - The company does not recommend the payment of an interim dividend for the three months ended March 31, 2019, consistent with no dividend declared for the same period in 2018[63]. - The group applied new Hong Kong Financial Reporting Standards effective from January 1, 2019, with no significant impact on the financial statements[28]. - The group transitioned to HKFRS 16, recognizing lease liabilities and corresponding right-of-use assets, affecting the financial position but not restating comparative figures[29]. - The company has maintained its capital structure since its successful listing on the GEM on July 9, 2018[64]. - As of March 31, 2019, the company's issued share capital was HKD 40 million, with 400 million ordinary shares issued, each with a par value of HKD 0.1[64]. - Major shareholders, including Hero Global and Mark Global, each hold 300 million shares, representing 75% of the issued share capital[74]. - The company has not disclosed any new product or technology developments in this report[62]. - The company has not purchased, sold, or redeemed any of its listed securities since the listing date[80]. - No significant events affecting the group were reported after March 31, 2019, up to the report date[84].
紫元元(08223) - 2019 Q1 - 季度财报