Business Strategy and Operations - The company completed the acquisition of the remaining shares of Shenzhen Haosen Microfinance Co., Ltd., making it a wholly-owned subsidiary, which strengthens its microfinance business[11]. - The company adjusted its business strategy in response to the economic environment and COVID-19, terminating cooperation with Daxinhua Airlines and repaying related bank loans to reduce financial costs[16]. - The company plans to focus its resources on providing flexible financing lease services to small and micro enterprises in the Greater Bay Area, particularly in the manufacturing sector[12]. - The company successfully launched a product related to second mortgage loans in the Shenzhen real estate market and plans to gradually exit the unsecured credit loan market[16]. - The company aims to optimize internal resource allocation and improve operational efficiency in response to the ongoing economic uncertainties[12]. - The company will adjust its business strategies related to microfinance in accordance with new real estate regulatory policies to increase its market share in the second mortgage loan sector in Shenzhen[16]. - The company plans to focus on small loans and financing lease businesses in the future[23]. Financial Performance - In 2021, the company's revenue was primarily derived from financing lease interest income (RMB 178 million), factoring service income (RMB 45 million), loan-related service income (RMB 122 million), loan interest income (RMB 741 million), advisory service income (RMB 9 million), margin financing interest income (RMB 10 million), and commission and brokerage income (RMB 15 million)[16]. - The company's revenue decreased from approximately RMB 176.1 million for the year ended December 31, 2020, to approximately RMB 113.9 million for the year ended December 31, 2021, representing a decline of about 35%[21]. - Interest income from financing leases and factoring for the year ended December 31, 2021, was approximately RMB 17.8 million and RMB 4.5 million, respectively, down from RMB 36.6 million and RMB 23.4 million in 2020, due to a reduction in new financing lease and factoring contracts[21]. - The company generated approximately RMB 12.2 million from loan-related services for the year ended December 31, 2021, a decrease from RMB 35.2 million in 2020, primarily due to a shift from unsecured credit loans to real estate second mortgage loans[21]. - The company recorded a net profit attributable to owners of approximately RMB 30.6 million for the year ended December 31, 2021, compared to a loss of approximately RMB 111.6 million for the year ended December 31, 2020[31]. - The company's cash and cash equivalents as of December 31, 2021, were approximately RMB 100.2 million, down from RMB 118.6 million as of December 31, 2020[33]. - The company's total equity as of December 31, 2021, was approximately RMB 541.1 million, a decrease from RMB 673.9 million as of December 31, 2020[33]. - The company's bank borrowings due within one year decreased to approximately RMB 99.2 million as of December 31, 2021, from RMB 420.3 million as of December 31, 2020[36]. - The company's debt-to-equity ratio as of December 31, 2021, was approximately 18.3%, down from 75.0% as of December 31, 2020, due to early repayment of bank loans[36]. - Other income decreased from approximately RMB 13.4 million for the year ended December 31, 2020, to approximately RMB 10.8 million for the year ended December 31, 2021, a decline of about 20%[24]. - As of December 31, 2021, the group had no contracted but unrecognized capital commitments, compared to RMB 770 million in 2020[38]. - As of December 31, 2021, the company's distributable reserves were approximately RMB 150.4 million, a decrease from RMB 166.6 million as of December 31, 2020[142]. Human Resources and Governance - The group employed 71 full-time employees as of December 31, 2021, down from 139 in 2020, with employee benefits expenses amounting to approximately RMB 227 million, a decrease from RMB 319 million in 2020[39]. - The company emphasizes the importance of good corporate governance for sustainable development and aims to enhance its governance mechanisms[13]. - The company will continue to adopt a prudent operating approach to mitigate risks and build healthy partnerships with clients and business partners[13]. - The company has a strong emphasis on financial and risk management strategies to enhance operational efficiency[69]. - The board of directors includes members with diverse backgrounds in finance, law, and management, contributing to comprehensive governance[76]. - The company is committed to implementing good corporate governance and has established procedures in accordance with the corporate governance code principles outlined in the listing rules[83]. - The company has a robust training and professional development program for directors and senior management, ensuring compliance with legal and regulatory requirements[83]. - The company has received annual written confirmations from independent non-executive directors regarding their independence, in line with listing rules[92]. - The company has a clear policy for reviewing and monitoring compliance with corporate governance codes and practices[83]. - The board is responsible for preparing annual budgets and financial statements, as well as making recommendations regarding profit distribution and capital adjustments[84]. - The company emphasizes board diversity as a key element for achieving strategic goals and sustainable development[111]. - The board's diversity policy considers various factors including gender, age, cultural background, and professional experience[112]. - The company is actively seeking suitable candidates to enhance gender diversity on the board, following the resignation of a female director in 2021[115]. Risk Management - The group has implemented a risk management system to mitigate operational risks, with a risk control committee overseeing risk management, business development, and accounting departments[40]. - The group is adopting a more cautious approach in selecting high-quality clients due to recent fluctuations in the Chinese economy and financial markets[41]. - The group plans to enhance its information technology systems to collect more accurate data and improve the review of clients' financial and operational conditions[41]. - The company plans to enhance risk management capabilities and focus on developing business with high-quality clients in a challenging environment[59]. - The company aims to improve internal information systems to enhance risk management and control costs effectively[59]. - The company is committed to maintaining effective risk management and internal control systems to minimize operational risks[122]. Stock Options and Incentives - The company has a share option scheme approved on June 19, 2017, aimed at incentivizing employees and other qualified participants[170]. - The maximum number of shares that may be granted under the share option scheme is capped at 10% of the issued share capital, which translates to 15,523,000 shares based on the latest approved issued share capital of 155,523,000 shares[176]. - The exercise price of shares under the share option scheme will not be less than the higher of the closing price on the specific offer date or the average closing price over the preceding five consecutive trading days[175]. - The company has a structured stock option plan that incentivizes employees and aligns their interests with shareholders[178]. - The stock option plan is valid for ten years from the date of adoption, allowing for flexibility in granting options to eligible participants[178]. - The company continues to monitor the effectiveness of its stock option plan as part of its overall compensation strategy[178]. - The company plans to continue its stock option program to incentivize key personnel and align their interests with shareholders[183]. - The total number of options exercised in 2021 was 952,000, reflecting a strategic move to enhance employee retention[183]. - The company anticipates further expansion in its stock option plans to attract and retain talent in the competitive market[183]. - The company is committed to transparency in its stock option plans and will provide regular updates to stakeholders[183]. Shareholder Relations - The company has established a shareholder communication policy to ensure effective communication with shareholders and the investment community[124]. - The board will continue to review the dividend policy to balance shareholder interests with prudent capital management[116]. - The company is focused on sustainable growth and will consider various factors before declaring dividends, including financial performance and future development plans[116]. - The board proposed a final dividend of HKD 0.03 per share for the year ended December 31, 2021, compared to no dividend in 2020, pending shareholder approval[134]. - The company has maintained sufficient public float in accordance with listing rules as of the report date[200]. - The company confirmed that related party transactions are ongoing and exempt from compliance with all disclosure requirements under Chapter 14A of the Listing Rules[160]. Corporate Structure and Leadership - Ms. Chen Shujun served as an executive director until her resignation on July 30, 2021, and has over 20 years of experience in Hong Kong's banking and finance industry[64]. - Mr. Xie Weiquan was appointed as an executive director on January 2, 2020, and has extensive experience in financing, investment, and asset management[69]. - Mr. Xie has been involved in financial and risk management since joining the group in 2013, focusing on leasing and service operations[69]. - Mr. Xia Dejiang, an independent non-executive director since June 19, 2017, has over 27 years of financial accounting and auditing experience[71]. - Mr. Gan Weimin, appointed as an independent non-executive director on January 2, 2020, has over 15 years of corporate finance experience[76]. - Mr. Shi Lei joined the group on September 1, 2014, as the general manager of leasing and has over 15 years of experience in China's financing leasing industry[77]. - The company emphasizes the importance of independent judgment in strategic, performance, resource, and code of conduct matters through its independent directors[75]. - The management team is focused on overall business development and risk management within the leasing sector[78]. - The company has established appropriate insurance arrangements to indemnify directors and senior officers against liabilities incurred in the performance of their duties[197]. Audit and Compliance - The external auditor, Deloitte, provided audit services for the year, with fees amounting to RMB 783,000[117]. - The company confirmed that its financial statements were prepared in accordance with all statutory requirements and applicable accounting standards[121]. - The Audit Committee held two meetings in March and August 2021 to review financial reporting and internal controls[102]. - The Remuneration Committee also conducted two meetings during the year to review current director remuneration policies[103]. - The Nomination Committee met twice to assess the board's structure and make recommendations for director appointments[104]. - The company adheres to the standard code of conduct for securities trading by directors, confirming compliance during the reporting period[107]. - Director remuneration is subject to shareholder approval at the annual general meeting[108].
浩森金融科技(03848) - 2021 - 年度财报