Revenue and Financial Performance - The company's revenue for the six months ended June 30, 2019, decreased by approximately RMB 4.9 million or 19.3% to about RMB 20.4 million, down from approximately RMB 25.2 million for the same period in 2018[13]. - Total revenue for the six months ended June 30, 2019, was approximately RMB 20.37 million, a decrease of 19.5% compared to RMB 25.24 million for the same period in 2018[59]. - Financing lease income for the six months ended June 30, 2019, was RMB 17.67 million, down from RMB 25.24 million in 2018, representing a decline of 30%[59]. - The company reported a net profit of RMB 278,454 for the six months ended June 30, 2019, compared to RMB 2.67 million in the same period of 2018, reflecting a significant decrease of 89.6%[59]. - Profit before tax decreased by approximately 74.7% to about RMB 0.9 million from RMB 3.6 million, primarily due to the increase in impairment losses recognized[21]. - The company reported a net profit of RMB 278,454 for the six months ended June 30, 2019, compared to a net loss in the previous period, indicating a turnaround in financial performance[62]. Income and Expenses - Other income during the reporting period was approximately RMB 0.7 million, an increase of about 21.7% compared to approximately RMB 0.5 million in the same period last year, primarily due to increased government subsidies for corporate tax payments[14]. - Employee costs for the reporting period were approximately RMB 4.8 million, a decrease of about 4.3% compared to RMB 5.1 million in the same period last year[16]. - Other operating expenses increased by approximately 33.6% to about RMB 6.9 million from RMB 5.1 million, mainly due to increased compliance costs after the company's listing and additional consulting fees from new accounting standards[18]. - Financing costs decreased by approximately 48.9% to about RMB 5.6 million from RMB 10.9 million, attributed to a reduction in interest-bearing loan balances[19]. - Income tax expenses decreased by approximately 32.9% to about RMB 0.6 million from RMB 1.0 million, mainly due to the utilization of tax losses from previous periods[23]. Assets and Liabilities - Total assets as of June 30, 2019, were RMB 260.41 million, slightly up from RMB 255.98 million as of December 31, 2018[61]. - Current liabilities decreased to RMB 46.94 million as of June 30, 2019, from RMB 74.08 million at the end of 2018, showing improved liquidity management[61]. - The group had a debt-to-equity ratio that decreased from approximately 18.1% to 3.3% during the reporting period[27]. - The company’s total current assets were RMB 157,504,776, reflecting a decrease of 2.8% from the previous period[98]. - The company’s total liabilities included lease liabilities measured at the present value of remaining lease payments, impacting the financial position as of the implementation date of IFRS 16[99]. Financing Activities - The net cash used in financing activities was approximately RMB 34.1 million, compared to a net cash inflow of RMB 54.8 million in the same period last year[25]. - The company incurred a total cash outflow of RMB 34,088,745 from financing activities during the six months ended June 30, 2019, compared to an inflow of RMB 54,815,341 in the same period of 2018[65]. - The group repaid bank and other borrowings amounting to RMB 33,195,866 during the period, a decrease from RMB 57,792,058 in the same period of 2018[123]. Market Conditions and Business Strategy - The automotive sales and production in China decreased by 13.7% and 12.4% respectively from January to June 2019, impacting the company's financing business[10]. - The competitive landscape in automotive-related financing continues to intensify due to new market entrants adopting low-price strategies[10]. - The company is taking a cautious approach to accepting new customer orders to protect its assets amid tightening credit conditions and rising debt defaults in the market[9]. - The company plans to enhance its competitiveness in the automotive financing and leasing market by recruiting an experienced team, which is anticipated to contribute financially in the second half of 2019[11]. - The company is focusing on expanding its financing lease arrangements, particularly in the automotive sector, to drive future growth[58]. Corporate Governance and Compliance - The company has complied with all corporate governance codes during the reporting period, except for deviation from code A.2.1[43]. - The company confirmed that all directors and relevant employees complied with the securities trading code during the reporting period[45]. - The company has appointed Eight Financial Limited as its compliance advisor, with no reported interests related to the group as of June 30, 2019[53]. - The company has appointed Mr. Liu Zhongwei as an independent non-executive director since June 12, 2019, enhancing its governance structure[57]. Shareholder Information - As of June 30, 2019, the company had a total of 600,000,000 shares held by Mr. Zhou Dawi, representing approximately 75% ownership[47]. - View Art Investment Limited, wholly owned by Mr. Zhou Dawi, holds 600,000,000 shares, which is also approximately 75% of the issued share capital of the company[50]. - The company did not declare any final dividends for the reporting period, and the board does not recommend any payment[41]. - The company did not declare or pay any dividends during the interim period[108]. Changes in Accounting Standards - The company has adopted new International Financial Reporting Standards (IFRS) effective January 1, 2019, which may impact future financial reporting and disclosures[71]. - The company adopted IFRS 16 for the first time, replacing IAS 17 and related interpretations[72]. - The company confirmed that short-term leases (12 months or less) are exempt from recognition and are accounted for as expenses on a straight-line basis[75]. - The company will account for leases as a lessor under IFRS 16 without restating comparative information[94]. Investments and Joint Ventures - The company invested RMB 3,000,000 in a joint venture that provides technical consulting services, holding a 20% equity stake[115]. - The net investment in the joint venture as of June 30, 2019, was RMB 2,766,768 after accounting for share of profits and other comprehensive income[116].
METROPOLIS CAP(08621) - 2019 - 中期财报