Acquisition and Corporate Structure - Zhongjin Technology Services Group Company Limited acquired KingNine Holdings Limited on October 15, 2020, which constituted a very substantial acquisition and connected transaction under GEM Listing Rules[14] - The total consideration for the acquisition of KingNine Holdings Limited is RMB850 million, with RMB180 million settled by share issuance, RMB250 million as a closing fund, and RMB420 million in cash[27] - As of March 31, 2021, the company issued 638,022,754 shares as consideration shares and paid RMB140 million as the first tranche of cash consideration[27] - The remaining cash consideration of RMB280 million will be paid in four installments of RMB70 million each, due on July 31 of 2021, 2022, 2023, and 2024[27] - The completion of the acquisition occurred on October 15, 2020, and KingNine has since been consolidated into the company's financial statements[33] - The company had no other material acquisitions or disposals of subsidiaries during the year[34] - KingNine completed the acquisition of Dalian Kingwisoft Technology Group on October 15, 2020, making it a wholly-owned subsidiary[36] - The Group's subsidiary ZZCI Corporate Finance Limited is licensed for type 1, type 4, type 6, and type 9 regulated activities, providing a diversified range of corporate advisory and asset management services[14] - The Group's subsidiary, Asian Capital (Qianhai) Investment Management Limited, was established in 2016 and approved as a Qualified Foreign Limited Partnership by Shenzhen Municipal Government Financial Services Office[14] - ZZCI Credit Limited, a wholly-owned subsidiary, holds a money lenders license, allowing the Group to provide financing against marketable securities[14] Financial Performance - KingNine Group reported revenue of approximately RMB506.1 million for the year, representing a year-on-year increase of 17.8%[75] - Revenue from back-office services amounted to approximately RMB255.6 million, accounting for 96.0% of the total revenue of the Group[75] - The net profit for the year was approximately RMB95.0 million, an increase of 45.6% compared to the previous financial year[77] - The accumulated actual audited consolidated net profit attributable to equity holders of KingNine for the guarantee period from April 1, 2020, to March 31, 2021, was approximately RMB93.6 million, exceeding the guaranteed profit of RMB90 million[61] - The guaranteed profit for the guarantee period from April 1, 2019, to March 31, 2020, was RMB60 million, with the actual profit being approximately RMB65.3 million[61] - KingNine Group achieved revenue of approximately RMB 506.1 million, a year-on-year increase of 17.8%, with back-office service revenue accounting for 96.0% of total revenue[78] - The net profit for the year was approximately RMB 95 million, representing a 45.6% increase compared to the previous fiscal year[79] - The Group recorded a significant revenue increase of 1,663%, reaching approximately RMB 266.2 million, primarily due to the acquisition of KingNine Group[90] Profit Guarantees and Compensation - The profit guarantee for KingNine's equity holders includes a minimum audited consolidated net profit of RMB 60 million for the fiscal year ending March 31, 2020, increasing to RMB 180 million for the fiscal year ending March 31, 2024[47] - If the actual net profit for any guarantee period is less than the guaranteed profit, the guarantors are expected to compensate the company for the shortfall in cash[51] - The total guaranteed profit over the specified periods amounts to RMB 600 million, with the compensation formula based on the shortfall calculation[50] Operational Highlights - The Group aims to enhance its financial services capabilities through various subsidiaries and strategic acquisitions[14] - The Group's services are primarily targeted at the People's Republic of China market[14] - The customer base increased from 90 as of March 31, 2020, to 125, with the top five customers contributing 69.8% of the Group's revenue[76] - The KingNine Group has maintained stable relationships with leading companies across various industries, including finance and e-commerce[76] - The company took effective measures during the COVID-19 pandemic to ensure smooth operations and compliance with government regulations[77] - The number of self-operated contact service centers increased from 12 to 13, and workstations rose to 6,693, an increase of 352 compared to March 31, 2020[87] - KingNine Group obtained one patent and 21 new software copyrights, bringing the total to 134 software copyrights granted[84] Financial Position and Ratios - Non-current assets increased to approximately RMB845.4 million from RMB24.3 million in 2020, mainly due to goodwill and intangible assets recognized from the Acquisition[109] - Net current assets decreased to approximately RMB401.6 million from RMB627.1 million in 2020, largely due to cash payments related to the Acquisition[110] - Non-current liabilities rose to approximately RMB231.4 million from RMB2.7 million in 2020, including payable cash consideration due in installments[111] - Total equity attributable to owners of the Company increased to approximately RMB999.9 million from RMB648.6 million in 2020, primarily due to the issuance of new shares for the Acquisition[120] - The Group's current ratio was 3.4 and gearing ratio was 2.9% as of March 31, 2021, indicating improved liquidity compared to 37.2 and Nil in 2020[117] Management and Governance - The company has independent non-executive directors with diverse backgrounds in finance, technology, and management, enhancing its governance structure[180] - The company is listed on the Hong Kong Stock Exchange, indicating its compliance with international financial standards[167] - The board includes members with significant experience in investment banking and corporate finance, which may benefit the company's strategic initiatives[186] - The company has a strong focus on risk management, as evidenced by the roles of its independent directors in various committees[180] - The company aims to leverage its directors' extensive networks and expertise to explore new market opportunities[188] - The company is committed to enhancing its operational efficiency through experienced leadership in financial management and technology[188] Future Plans and Market Strategy - The Group plans to explore acquisitions or investments in synergistic assets to expand service categories and enhance research and development capabilities[130] - The KingNine Group is focusing on premium corporate clients in the Internet and finance sectors to diversify services and strengthen customer loyalty, aiming to increase market share[130] - The Group is preparing for live streaming e-commerce and training, leveraging its Internet marketing capabilities to drive growth in B2B corporate services[142] - KingNine Group's investment in Jinliang Technology aims to diversify revenue streams through comprehensive media services for financial industry clients, including new media operations and information flow advertising[146] - The Group plans to focus on more optimistic business prospects and considers optimizing its asset structure by disposing of non-core businesses[150]
金慧科技(08295) - 2021 - 年度财报