Workflow
隽泰控股(00630) - 2022 Q2 - 季度财报
AMCO UNITEDAMCO UNITED(HK:00630)2022-09-28 11:04

Supplementary Announcement Purpose and Scope of Announcement This announcement provides supplementary information for Jinhui Holdings Limited's annual report for the year ended December 31, 2021, primarily focusing on the Group's money lending business - This announcement supplements Jinhui Holdings Limited's 2021 annual report, providing additional information2 Overview of Money Lending Business Business Model and Operations The Group's money lending business is operated by its licensed subsidiary, Kin Shun Finance, primarily providing loans to individuals, private, and listed companies using internal resources to earn interest income, with clients often referred through the Group's business network and subject to strict credit assessment and board approval - The money lending business is operated by Kin Shun Finance Limited, an indirect wholly-owned subsidiary and licensed money lender3 - Loans are provided to customers, including individuals, private, and listed companies, using internal resources to generate interest income3 - Loan applications undergo credit assessment, including credit history, financial background, and collateral value, followed by final review and approval by the Board of Directors38 Impact of Pandemic and Risk Management Affected by COVID-19, Kin Shun Finance adjusted its business strategy by increasing loan requirements to reduce default rates and lowering interest rates accordingly; despite this, impairment losses from expected credit losses and write-offs were recognized in 2021, though lower than 2020, as the Group continuously improved collection processes - Due to COVID-19, Kin Shun Finance adjusted its business strategy, increasing loan requirements (requiring asset/income proof) and lowering interest rates to mitigate risks6 Net Impairment Losses from Expected Credit Losses and Write-offs (HKD) | Metric | 2021 (HKD) | 2020 (HKD) | Change | | :--- | :--- | :--- | :--- | | Expected credit losses on loans and interest receivables | Approximately 9,100,000 | Approximately 22,400,000 | Decrease of 59.46% | | Net impairment losses from write-offs | Approximately 5,000,000 | None | New | - In 2021, 31 loan renewal applications were received and approved, with management conducting credit assessments prior to renewal6 Loan Portfolio Details As of the end of 2021, the Group's loan portfolio comprised 35 borrowers, with principal amounts ranging from HKD 100,000 to HKD 10 million, annual interest rates from 6.0% to 12.0%, all maturing within one year and unsecured; the top five borrowers accounted for 37.2% of net loans and interest receivables Loan Portfolio Overview as of December 31, 2021 | Metric | Details | | :--- | :--- | | Loan principal range | Approximately HKD 100,000 to HKD 10,000,000 | | Annual interest rate range | 6.0% to 12.0% | | Maturity period | Within one year | | Number of borrowers | 35 (30 individual clients, 5 corporate clients) | | Loan nature | All net loans and interest receivables are unsecured | Major Borrower Proportions as of December 31, 2021 | Borrower Type | Proportion of Net Loans and Interest Receivables | | :--- | :--- | | Largest borrower | Approximately 8.1% (approximately HKD 8,100,000) | | Top five borrowers | Approximately 37.2% | Money Lending Business Management and Monitoring Lending Guidelines and Approval Process Kin Shun Finance adheres to strict lending guidelines and procedural manuals to standardize the loan approval process, which includes client identification, related party checks, senior officer review, credit analysis memorandum preparation, and final item-by-item approval by the Board based on applicant's credit, financial status, and collateral - All loans and agreements are granted and approved in accordance with Kin Shun Finance's lending guidelines and procedural manual8 - The lending guidelines aim to generate interest income and avoid bad debts, providing specific requirements for loan interest rates, terms, credit assessment, and approval procedures8 - The loan approval process includes application, client identification, related party checks, director review, credit analysis memorandum preparation, and final item-by-item approval by the Board of Directors10 Loan Monitoring and Collection The Group continuously monitors approved loans, reviewing them at least annually or more frequently, reporting repayment status monthly, and immediately informing directors of any defaults; for secured loans, additional collateral may be required, while for unsecured loans, repayment may be demanded if the client's financial condition deteriorates, with overdue debts subject to demand letters and legal action - Once a loan is approved, responsible personnel must conduct continuous monitoring reviews at least annually or more frequently, report repayment status monthly, and immediately inform directors upon discovering any defaults10 - For secured loans, if collateral value is insufficient or the loan-to-value ratio is exceeded, borrowers may be required to provide additional collateral, partially repay, or realize collateral11 - For unsecured loans, if a client's financial condition significantly deteriorates, the client may be required to repay the loan11 - Demand letters are issued for debts overdue by 3 months, and legal action is considered for debts overdue by more than 6 months13 Compliance Kin Shun Finance's money lending business fully complies with the Money Lenders Ordinance, Chapter 163 of the Laws of Hong Kong - The money lending business is regulated by the Money Lenders Ordinance, Chapter 163 of the Laws of Hong Kong, and Kin Shun Finance has fully complied with applicable laws and regulations13 Other Information Board Information The additional information provided in this supplementary announcement does not affect other content disclosed in the annual report; as of the announcement date, the Board members include Executive Directors Mr. Zhang Hengxin and Mr. Jia Minghui, and Independent Non-executive Directors Mr. Chan Chi Keung, Mr. Au Yeung Ming Yin, and Mr. Kwok Chun Wai - The additional information provided in this announcement does not affect other information contained in the annual report, and the annual report's content remains unchanged14 - As of the announcement date, the Executive Directors are Mr. Zhang Hengxin and Mr. Jia Minghui; the Independent Non-executive Directors are Mr. Chan Chi Keung, Mr. Au Yeung Ming Yin, and Mr. Kwok Chun Wai15