Client Portfolio - As of December 31, 2023, there were 25 active clients, including 1 delisted company, 16 businesses, and 8 private companies, with interest rates ranging from 8% to 18% and loan terms between 5.5 to 12 months[3]. - The company’s strategy focuses on high-net-worth clients, allowing it to charge higher interest rates while maintaining lower risk exposure[3]. Lending Strategy - The company has adopted a more cautious approach to its lending business due to significant changes in the post-pandemic economic environment, focusing on strict approval processes for new loans until economic conditions improve[3]. - The company aims to enhance the management of existing receivables and improve cash flow, ensuring a favorable position for future opportunities[3]. - The basic interest rates charged to clients generally start from a standard rate set by the company, with rates ranging from 8% to 18% depending on various risk factors[4]. Loan Security and Impairment - A significant portion of loans is secured by shares of listed companies, with 8 loans being unsecured and 3 secured by real estate and receivables from Hong Kong listed companies[3]. - The company has experienced a notable impairment loss for the year ended December 31, 2023, due to a decline in the value of collateral amid a sluggish stock and real estate market[11]. Loan Monitoring and Recovery - The company has implemented a monitoring and recovery procedure for loans, which includes evaluating repayment capabilities and negotiating terms with borrowers[12]. - The company actively monitors the repayment status of each loan and regularly communicates with clients to emphasize the importance of repayment[13]. - In cases where initial communication attempts fail, the company employs legal advisors to issue formal demand letters outlining the client's obligations and potential legal consequences[14]. - For clients facing financial difficulties, the company is open to negotiating extended repayment terms or adjusting loan conditions[16]. - The company will consider litigation as a last resort after exhausting all other collection methods, given the complexity and costs involved[17]. - The company maintains communication with bankruptcy administrators to monitor asset liquidation progress for clients who have declared bankruptcy[15]. - The company emphasizes the importance of balancing legal costs, the liquidity of collateralized securities, and the client's financial situation before pursuing legal action[17]. Financial Oversight - The company will continue to assess the credit loss model with a more prudent approach, reflecting the ongoing economic challenges and their impact on client repayment capabilities[11]. - The company’s financial supervisor is responsible for executing scale tests to determine if proposed loans trigger any disclosure requirements under listing rules[6]. Governance Structure - The board of directors includes four executive directors and three independent non-executive directors, ensuring a diverse governance structure[19]. Collection Effectiveness - The company has successfully recovered approximately HKD 11,900,000 in loan repayments since January 1, 2024, indicating the effectiveness of its collection efforts[18].
汇盈控股(00821) - 2024 - 年度业绩