Revenue and Income - The group's revenue for the six months ended June 30, 2020, decreased by approximately RMB 4.3 million or 20.9% to about RMB 16.1 million compared to the same period in 2019, which was approximately RMB 20.4 million[11]. - The decline in revenue was primarily due to reduced financing lease income resulting from the COVID-19 pandemic and intensified price competition in the automotive financing sector[11]. - The newly established financing lease consulting business contributed approximately RMB 2.6 million to the total revenue during the reporting period[11]. - Other income for the reporting period was approximately RMB 0.5 million, a decrease of about RMB 0.2 million or 22.4% compared to approximately RMB 0.7 million in the same period last year[12]. - The total revenue for the six months ended June 30, 2020, was approximately RMB 16.11 million, a decrease of 21.0% compared to RMB 20.37 million for the same period in 2019[57]. - Financing lease income for the six months ended June 30, 2020, was RMB 8.06 million, down 54.4% from RMB 17.67 million in 2019[57]. - The company reported a net profit of RMB 1.06 million for the six months ended June 30, 2020, compared to a profit of RMB 0.28 million in 2019, representing a significant increase[59]. - The average yield on financing leases increased to 33.46% as of June 30, 2020, compared to 22.7% in 2018[52]. Expenses and Costs - Employee costs increased by approximately RMB 1.4 million or 27.4% to about RMB 6.2 million during the reporting period, primarily due to the hiring of new staff in the sales and business development departments[15]. - Other operating expenses decreased by approximately 47.0% to RMB 3.6 million from RMB 6.9 million in the same period last year, primarily due to reduced auditor fees and professional expenses related to compliance matters[16]. - Financing costs decreased by approximately 46.1% to RMB 3.0 million from RMB 5.6 million in the same period last year, mainly due to the new financing lease business in the used car market requiring lower deposits from lessees[17]. - Income tax expenses increased by approximately 183.6% to RMB 1.8 million from RMB 0.6 million in the same period last year, primarily due to the significant increase in profit[21]. Financial Position - As of June 30, 2020, the group's cash and cash equivalents amounted to approximately RMB 25.2 million, compared to RMB 20.8 million as of June 30, 2019[22]. - The group's debt-to-equity ratio decreased from approximately 13.5% as of December 31, 2019, to 6.9% as of the end of the reporting period[25]. - The total employee costs during the reporting period amounted to approximately RMB 6.2 million, compared to RMB 4.8 million in the same period last year, reflecting an increase in the number of full-time employees from 72 to 97[27]. - The company’s total assets decreased to RMB 211.87 million as of June 30, 2020, from RMB 227.11 million at the end of 2019[63]. - The company’s current liabilities decreased to RMB 43.14 million as of June 30, 2020, from RMB 59.04 million at the end of 2019[63]. - As of June 30, 2020, the total equity attributable to owners of the company was RMB 197,236,636, reflecting an increase from RMB 196,545,929 as of January 1, 2020[64]. Operational Developments - The group strategically expanded its expertise in financing leasing and risk management to include financing lease consulting services, establishing a new subsidiary that holds 60% ownership[9]. - The group is focusing on the second-hand car financing lease market, which targets individual customers with lower leasing amounts compared to corporate clients, and this new business line has shown steady growth[8]. - The group is enhancing its internal operations and data management systems to improve its technological and digital capabilities[9]. - The group is intensifying efforts to collect overdue lease payments while monitoring the performance of different leasing assets[8]. Corporate Governance - The company confirmed compliance with the corporate governance code, with the exception of deviation from code A.2.1[39]. - The company has maintained transparency and accountability through good corporate governance practices[39]. - All directors and relevant employees confirmed compliance with the securities trading code during the reporting period[42]. - The board will continue to review the separation of the roles of chairman and CEO as appropriate[39]. Shareholder Information - As of June 30, 2020, the chairman and CEO, Mr. Zhou, holds 600,000,000 shares, representing approximately 62.5% of the company's issued share capital[43]. - View Art Investment Limited, wholly owned by Mr. Zhou, is the beneficial owner of 600,000,000 shares, also representing approximately 62.5%[46]. - The total issued and paid-up share capital increased to 960,000,000 shares as of June 30, 2020, from 800,000,000 shares previously[115]. Cash Flow and Investments - Net cash used in operating activities was approximately RMB 9.9 million, while net cash generated from operating activities was approximately RMB 10.1 million in the same period last year[23]. - The net cash generated from investing activities was RMB 4,627,640 for the six months ended June 30, 2020, a significant improvement from RMB (8,485,114) in the previous year[66]. - The company reported a net decrease in cash and cash equivalents of RMB (18,692,169) for the six months ended June 30, 2020, compared to RMB (32,480,099) in 2019[66]. - The company’s financing activities resulted in a net cash outflow of RMB (13,406,486) for the six months ended June 30, 2020, compared to RMB (34,088,745) in the previous year[66]. Financing Lease Receivables - The total amount of financing lease receivables as of June 30, 2020, was RMB 61.86 million, an increase from RMB 48.33 million at the end of 2019[61]. - The group reported a loss provision of RMB 49,949,533 for financing lease receivables, which increased from RMB 47,977,514 as of December 31, 2019, indicating a rise of about 4.1%[98]. - The total amount of sale and leaseback arrangements receivables as of June 30, 2020, was RMB 76,591,113, up from RMB 54,933,656 as of December 31, 2019, reflecting an increase of approximately 39.4%[101][103]. - The group’s current assets related to financing lease receivables were RMB 72,898,745 as of June 30, 2020, compared to RMB 120,304,845 as of December 31, 2019, indicating a significant decrease of about 39.4%[94][96]. - The non-current assets related to financing lease receivables were RMB 61,858,744 as of June 30, 2020, down from RMB 48,334,319 as of December 31, 2019, which is an increase of approximately 28.1%[94][96]. Related Party Transactions - The group has not received any deposits from related party financing lease agreements, indicating a cautious approach towards related party transactions[97]. - The financing lease income earned from related party Xin You was RMB 173,279, a decrease of 20% compared to RMB 216,951 in 2019[125]. - The interest expense on lease liabilities to related party Mr. Zhou Zunzhong was RMB 41,784, with no corresponding expense in 2019[125].
METROPOLIS CAP(08621) - 2020 - 中期财报