Financial Performance - The group's revenue for the year ended December 31, 2019, was approximately RMB 374 million, a decrease of 22.1% compared to RMB 480 million for the year ended December 31, 2018[10]. - The group's revenue decreased by approximately RMB 10.6 million or about 22.1% to approximately RMB 37.4 million, primarily due to a reduction in total lending amounts[15]. - Other income increased by approximately RMB 0.7 million to about RMB 1.6 million, mainly due to increased government subsidies related to VAT and other fees[16]. - The group reported a pre-tax loss of approximately RMB 46.6 million, compared to a pre-tax profit of approximately RMB 0.8 million in the same period last year[27]. - The group recognized impairment losses of approximately RMB 43.5 million, a significant increase from RMB 0.8 million in the previous period, due to a deteriorating macroeconomic environment and increased credit risk[26]. - The overdue lease receivables increased, influenced by a more cautious market outlook and rising default events in China, prompting the group to enhance its credit risk control measures[24]. Business Strategy and Operations - The company plans to allocate more resources to leasing consulting services and explore new business opportunities with higher profit margins and lower risks in 2020[12]. - The company intends to open its first directly operated retail store to provide more direct services to customers and shorten the business chain[12]. - The company aims to expand its financial leasing business into the healthcare sector in 2020[12]. - The company has restructured its management team and recruited experienced new employees to adapt to changing macro and microeconomic environments[12]. - The company has been affected by the implementation of stricter emission standards (National VI), which negatively impacted business, especially in the first half of 2019[85]. Financial Position and Cash Flow - As of December 31, 2019, the group's cash and cash equivalents amounted to approximately RMB 43.3 million, down from RMB 53.2 million as of December 31, 2018[33]. - The net cash used in operating activities was approximately RMB 9.2 million, a decrease of RMB 8.4 million compared to RMB 17.6 million in the same period last year[33]. - The total amount of net financing provided to customers was approximately RMB 369.1 million, with RMB 108.5 million related to inventory leasing[15]. - The group approved only RMB 6.1 million in inventory leasing during the reporting period due to cautious selection amid uncertainties from the implementation of the National VI standard[15]. Corporate Governance - The company emphasizes the importance of a robust corporate governance system for its sustainable development and plans to conduct annual reviews to enhance governance objectives[10]. - The board of directors consists of five members, with Mr. Zhou Dawi holding a controlling interest of 600,000,000 shares, representing 62.5% of the total issued share capital[101]. - The company has adopted the corporate governance code as its own, ensuring transparency and accountability[147]. - The independent auditor for the reporting period was Deloitte, and there have been no changes in auditors over the past three years[141]. - The company has established appropriate insurance coverage for directors and senior management against legal actions arising from company activities[153]. Risk Management - The company has established a risk management system tailored to its business operations, focusing on credit risk, liquidity risk, interest rate risk, operational risk, and legal compliance risk[183]. - The board of directors confirmed their responsibility for the effectiveness of the risk management and internal control systems, which are designed to manage rather than eliminate risks[185]. - The company has implemented monitoring procedures to ensure unauthorized access to and use of inside information is prohibited[188]. - The company has appointed a compliance officer to oversee all compliance matters[189]. Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of business performance and strategies[194]. - The company maintains a website to provide the latest financial information and corporate governance updates for public access[194]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within two months of submission[195]. - Procedures for nominating candidates for the board of directors are available on the company's website[197]. - The company welcomes inquiries from shareholders at any time, providing contact details for communication[199].
METROPOLIS CAP(08621) - 2019 - 年度财报