Financial Performance - For the year ended December 31, 2022, the finance lease interest income was approximately RMB 3.1 million, a decrease from RMB 17.8 million in 2021, primarily due to a reduction in new finance lease contracts and a reallocation of resources to micro-lending business[9]. - Revenue for the year ended December 31, 2022, decreased by approximately RMB 14.3 million or about 13% to approximately RMB 99.6 million, primarily due to the impact of COVID-19 and the slowdown of the Chinese economy[45]. - Profit attributable to the owners of the company for the year ended December 31, 2022, was approximately RMB 24.1 million, compared to RMB 30.6 million for the year ended December 31, 2021[64]. - Other income increased by approximately RMB 7.5 million or about 69% to approximately RMB 18.3 million for the year ended December 31, 2022, primarily due to increased dividend income from financial assets and recovery of bad debts[31]. - Cash and cash equivalents as of December 31, 2022, were approximately RMB 58.3 million, down from approximately RMB 100.2 million as of December 31, 2021[66]. - Operating funds (current assets minus current liabilities) as of December 31, 2022, were approximately RMB 185.6 million, compared to RMB 236.8 million as of December 31, 2021[66]. - Interest income from microloans for the year ended December 31, 2022, was approximately RMB 94.8 million, an increase from RMB 74.1 million for the year ended December 31, 2021[73]. - Other loan interest income for the year ended December 31, 2022, was approximately RMB 0.3 million, down from RMB 1.8 million for the year ended December 31, 2021[73]. - Financial costs decreased from approximately RMB 24.9 million to RMB 19.1 million, a reduction of about RMB 5.8 million or 23% due to repayment of bank and other borrowings[77]. - As of December 31, 2022, the group's bank borrowings due within one year were approximately RMB 100.0 million, slightly up from RMB 99.2 million in 2021, while borrowings due after one year decreased to zero[84]. - The group's receivables increased to approximately RMB 613.4 million from 594.7 million, primarily due to an increase in small loan receivables[86]. - The asset-liability ratio as of December 31, 2022, was approximately 18.0%, a slight decrease from 18.3% in 2021[85]. Business Operations - The group's main businesses include providing finance leasing, factoring, and financing advisory services in China, as well as micro-lending and related loan intermediary services[5]. - The revenue sources of the group include finance lease interest income, finance lease advisory service income, and other financing advisory service income, among others[8]. - The company adjusted its operational strategy in response to the economic environment and COVID-19, leading to a significant decline in leasing and factoring business revenue[44]. - The company focused on second mortgage products in the Shenzhen market for its micro-lending business, adapting its strategy based on changes in relevant policies[44]. - The company plans to provide flexible financing services to potential clients of various sizes across different industries[44]. - The company plans to focus on the microloan business in the future[74]. - The company has engaged five consultants with extensive industry knowledge to provide advisory services related to micro-lending and financing leasing[35]. Corporate Governance - The company has not purchased, sold, or redeemed any of its listed securities during the year and up to the report date[11]. - The company received independence confirmations from all independent non-executive directors as per the listing rules, affirming their independence[15]. - The company has established service contracts with all directors and supervisors, with a maximum term of three years[17]. - As of the report date, there were no directors or their associates involved in determining their own remuneration[16]. - The company has not disclosed any new product or technology developments in the current report[19]. - There is no mention of market expansion or mergers and acquisitions in the current report[19]. - The company has not provided specific future outlook or performance guidance in the current report[19]. - The company has not received any disclosures regarding significant shareholdings from individuals other than directors or senior executives[29]. Environmental Impact - The company has implemented measures to reduce greenhouse gas emissions, primarily from electricity consumption and company vehicle usage[108]. - The total greenhouse gas emissions increased to 145,321 kg in 2022 from 72,082 kg in 2021, representing a 101% increase[132]. - Scope 2 emissions from purchased electricity rose significantly to 133,737 kg in 2022, compared to 61,600 kg in 2021, marking a 117% increase[132]. - The greenhouse gas emissions intensity increased to 1,459 kg per million revenue in 2022, up from 633 kg in 2021, indicating a 131% rise[132]. - Nitrogen oxides emissions increased to 2,842 grams in 2022 from 2,564 grams in 2021, a rise of 11%[132]. - The company aims to gradually increase the proportion of new energy vehicles used as company cars to reduce greenhouse gas emissions in the long term[116]. - The company has implemented energy-saving measures, including the use of eco-friendly materials and regular maintenance of electrical appliances[114]. - The company promotes environmental protection by reducing energy and paper consumption and encouraging the reuse of office supplies[113]. - The company complies with various environmental laws and regulations, including the Environmental Protection Law and the Air Pollution Prevention and Control Law[133]. - The company's electricity consumption increased to 217,106 kWh in 2022 from 98,764 kWh in 2021, representing a growth of approximately 119%[156]. - The electricity consumption intensity was 2,180 kWh per million revenue in 2022, up from 867 kWh per million revenue in 2021, indicating a significant increase in energy efficiency challenges[156]. Employee Relations - The employee turnover rate is approximately 28%, reflecting the company's efforts to maintain an acceptable level of employee retention[142]. - The workforce consists of 83 full-time employees, with a gender distribution of 39 males (47%) and 44 females (53%) as of December 31, 2022[140][163]. - The company has implemented a policy to protect employee labor rights and established a complaint system for reporting concerns related to labor rights violations[150]. - The company aims to provide a safe and healthy work environment, promoting a work-life balance through recreational activities[143]. - Average training hours for male employees is 15 hours with a participation rate of 69%, while female employees average 13 hours with an 80% participation rate[171]. Compliance and Risk Management - The company has established internal controls and compliance procedures to ensure frontline employees adhere to all relevant laws and regulations in financial services[153]. - The company actively monitors legal and regulatory changes to mitigate risks associated with compliance costs and reputational damage[160]. - The company has implemented internal safety and health policies in accordance with relevant laws and regulations[170]. - The company has established a comprehensive reporting and investigation mechanism for anti-corruption, with immediate termination of employment for employees accepting benefits from clients or suppliers[196]. - The company has implemented strict measures to prevent and detect money laundering and terrorist financing, including reporting suspicious transactions to relevant government departments[197]. - The company has complied with anti-bribery, anti-money laundering, and anti-corruption laws and regulations throughout the year[197]. - The company prioritizes the protection of intellectual property rights, ensuring only authorized software is installed[194]. - The company has obtained all necessary licenses and permits for its business operations, ensuring compliance with legal regulations[190].
浩森金融科技(03848) - 2022 - 年度财报