Financial Performance - The total revenue for the year was approximately RMB 65,671,000, representing an increase of about 24.3% compared to 2020[8]. - Interest income from the lending business was approximately RMB 31,015,000, accounting for about 47.2% of total revenue[10]. - Revenue from the electronic components processing and trading business was approximately RMB 22,254,000, contributing 33.9% to total revenue, with a year-on-year increase of 31.8%[11]. - The newly initiated beauty care services generated revenue of approximately RMB 3,827,000, accounting for 5.8% of total revenue[10]. - The funeral services business generated revenue of approximately RMB 8,575,000, which is an increase of 67.8% year-on-year[11]. - The total revenue from the funeral services business was RMB 8,575,000, which accounted for 13.1% of total revenue[10]. - The company recorded a loss of approximately RMB 9,597,000 primarily due to impairment losses on associates and goodwill[8]. - The loss attributable to the company's owners decreased to RMB 9,429,000 from RMB 25,571,000, a reduction of approximately RMB 16,142,000 or 63.1% compared to the previous year[13]. Expenses and Financial Management - General and administrative expenses increased by approximately RMB 990,000 or 3.8% to RMB 26,997,000 due to higher corporate expenses[12]. - The company's financial expenses increased by approximately RMB 584,000 or 12.5% to RMB 5,241,000, primarily due to interest expenses on unsecured bonds[13]. - The impairment loss on interests in associates was approximately RMB 1,170,000, down from RMB 3,367,000 in the previous year[14]. - The expected credit loss provision decreased to approximately RMB 18,149,000 from RMB 22,138,000 in the previous year[15]. - The current ratio as of December 31, 2021, was 5.6 times, down from 33.3 times in 2020[16]. - The debt-to-asset ratio was approximately 19.5% as of December 31, 2021, compared to 15.4% in the previous year[17]. Business Strategy and Future Plans - The company plans to invest more resources into the beauty care services while ensuring stability in the lending and electronic components businesses[8]. - The company aims to explore other potential investment opportunities to broaden revenue sources[8]. - The company plans to invest continuously in the processing and trading of electronic components to achieve product upgrades and implement various cost-saving and quality improvement measures[33]. - The ongoing COVID-19 pandemic continues to impact the global economy, which may further affect the company's financial performance[33]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors[47]. - The independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules[48]. - The nomination committee held one meeting in 2021, with all members attending[56]. - The nomination committee reviewed the current board structure, size, composition, and diversity policies[58]. - The company has adopted a nomination policy to ensure that appointed directors possess relevant business, financial, and management skills[59]. - The board is responsible for the final selection and appointment of new directors based on recommendations from the nomination committee[59]. - The independent non-executive director, Mr. Chan, has over 10 years of experience in auditing and accounting[47]. - The company ensures that all independent non-executive directors do not have any family, financial, or business relationships with other board members[49]. - The company complies with GEM Listing Rules requiring at least three independent non-executive directors, with one having appropriate professional qualifications[47]. - The board members are subject to re-election at least once every three years, ensuring regular assessment of their performance[55]. - The board consists of five directors, with three females and two males, reflecting a commitment to gender diversity[64]. - The nomination committee reviews the board composition annually to ensure it possesses the necessary expertise and experience for effective decision-making[63]. - The company has adopted a board diversity policy, recognizing the benefits of diverse backgrounds and experiences among board members[63]. - The remuneration committee is responsible for recommending the compensation policies for all directors and senior management, ensuring alignment with governance standards[74]. - In 2021, the remuneration committee reviewed and approved the compensation packages for directors, including three independent non-executive directors[75]. - The company emphasizes the importance of ongoing professional development for directors, ensuring they are updated on relevant laws and governance practices[66]. - All directors have access to board documents, meeting records, and related information to facilitate informed decision-making[72]. - The company has established guidelines for securities trading by directors to comply with GEM listing rules[68]. - The board's diversity policy considers various factors, including gender, age, cultural background, and professional experience[63]. - The company encourages directors to participate in continuous professional development seminars to enhance their skills and knowledge[65]. - The remuneration committee held one meeting in 2021[77]. - Attendance rate for the remuneration committee meeting was 100% for all directors present[78]. Audit and Internal Control - The company incurred audit fees of approximately RMB 514,000 for the statutory audit for the year ended December 31, 2021[81]. - The audit committee held seven meetings in 2021, with full attendance from all members[87][88]. - The audit committee reviewed the audited financial statements for the year ended December 31, 2020, and the interim report for the six months ended June 30, 2021[89]. - The board has reviewed the effectiveness of the internal control system and deemed it effective and adequate as of December 31, 2021[85]. - The company appointed an independent internal control consultant to conduct an annual review of the internal control system[84]. - The board is responsible for ensuring the establishment and maintenance of an appropriate and effective risk management and internal control system[82]. - The company has adopted all applicable International Financial Reporting Standards in preparing its financial statements[81]. - The audit committee's work and review results were reported to the board, with no significant issues requiring disclosure in the annual report[89]. Shareholder Communication and Dividend Policy - The company emphasizes shareholder communication and encourages participation in all shareholder meetings, providing opportunities for dialogue with management[96]. - The board of directors has a discretion to declare dividends based on various factors, including the group's actual and expected financial performance and capital requirements[101]. - The company has established a dividend policy since March 2019, which includes appropriate procedures for declaring and recommending dividends[101]. - The board of directors is committed to regularly reviewing and reassessing the effectiveness of the dividend policy[103]. - The company maintains communication channels with shareholders and investors, providing timely access to financial information and corporate governance details through its website[109]. - The company has engaged professional investor relations services to facilitate communication with existing and potential investors[109]. - The attendance rate of executive and independent non-executive directors at the 2021 annual general meeting was recorded, with some directors unable to attend due to other commitments[100]. - The company adheres to the GEM listing rules and has established a series of communication channels to disclose all necessary information to shareholders[108]. - The company encourages shareholders to opt for electronic communication to enhance effective communication and align with environmental interests[109]. Environmental and Social Responsibility - The ESG report outlines the company's performance in environmental, social, and governance aspects for the year ending December 31, 2021, covering four main business areas: lending, electronic component processing and trading, beauty services, and funeral services[112]. - The total greenhouse gas emissions for the reporting period amounted to 19.6 tons of CO2 equivalent, all from indirect emissions generated from purchased electricity[123]. - The total energy consumption during the reporting period was 32.1 MWh, with a density of 1.1 MWh per employee[129]. - The total water consumption was 578.0 cubic meters, with a density of 19.3 cubic meters per employee[129]. - The company has implemented a series of environmental protection rules and standards to enhance employees' awareness of environmental conservation[121]. - The company has adopted a "paperless" approach, utilizing electronic documents and encouraging double-sided printing to reduce paper consumption[127]. - The company actively engages in waste management by classifying, recycling, and disposing of waste through qualified professional waste recycling companies[125]. - The company has set a goal to explore various effective measures to enhance its environmental protection levels, including establishing a sustainability task force[128]. - The company has not violated any environmental protection laws and regulations related to emissions during the reporting period[122]. - The company encourages employees to participate in various environmental activities to enhance their awareness of environmental protection[130]. Employee Management and Development - The total number of employees is 30, with a turnover rate of 10%[139]. - Female employees account for 53.3% of the workforce, with a turnover rate of 0%, while male employees make up 46.7% with a turnover rate of 21%[139]. - Among administrative staff, the turnover rate is 0%, while general employees have a turnover rate of 17%[139]. - The turnover rate for employees aged 41-50 and those over 50 is 33%[139]. - The company has not recorded any work-related deaths or serious injuries in the past three years[143]. - The company emphasizes the importance of employee training and development, providing internal promotion opportunities for high-performing staff[144]. - The company has established a comprehensive compensation and incentive system to attract and retain talent[134]. - The company has implemented safety measures and training to ensure a safe working environment, with no significant safety incidents reported[141]. - The company maintains a work environment free from discrimination based on gender, age, nationality, and other factors[136]. - A total of 20 employees received training, representing 67% of the total trained employees[147]. - Female employees accounted for 55% of the trained workforce, while male employees made up 45%[147]. - Administrative staff received an average of 165.0 hours of training per employee, compared to 72.3 hours for general employees[147]. - The average training hours per employee was 109.4 hours, with female employees receiving 133.1 hours and male employees receiving 82.3 hours[147]. Supply Chain and Market Position - The company has a total of 15 suppliers, with 1 located in Hong Kong and 14 in China[152]. - The company provided secured and unsecured loans, including personal loans, mortgage loans, and corporate loans[153]. - The company reported 0% of sold or shipped products were subject to recall in 2021[157]. - There were no complaints received regarding products and services during the reporting period[157]. - The company strictly prohibits child labor and forced labor in compliance with local and international labor laws[148]. - The company maintains a commitment to anti-corruption and regularly reviews internal governance mechanisms[159]. - The company reported zero legal cases concluded during the reporting period[161]. - The top five customers accounted for approximately 18.5% of the total revenue, while the top five suppliers represented about 36.4% of total purchases[178]. - The largest customer contributed around 4.5% to the total revenue, and the largest supplier accounted for approximately 10.4% of total purchases[178]. - The company is actively researching corporate social responsibility initiatives and community investment activities[161]. - The company has not identified any incidents of corruption or fraud during the reporting period[160]. - The company faces significant competition in its electronic components trading business, primarily operating in China[166]. - The company is exposed to market risks due to economic, political, and legal changes in Hong Kong and China[169]. - The company has implemented internal policies to manage lending risks, but significant customer defaults could adversely affect financial performance[166]. - The company maintains a liquidity risk management strategy to ensure sufficient cash flow and credit facilities[173]. Shareholder and Financial Transactions - The board does not recommend the payment of a final dividend for the year[180]. - There were no purchases, sales, or redemptions of the company's shares during the year[182]. - As of December 31, 2021, the company had no bank or other borrowings[187]. - There were no related party transactions conducted by the group during the year[191]. - As of December 31, 2021, the company had no distributable reserves for shareholders[185]. - The company has no significant contracts with its controlling shareholders as defined by GEM listing rules[194]. - As of December 31, 2021, the company’s directors and senior management held a total of 6,438,000 shares, representing approximately 2.49% of the company[199]. - There were no major transactions, arrangements, or contracts involving directors or their associates during the year[198]. - The company did not establish any management or administrative contracts related to its business during the year[195]. - There were no individuals holding 10% or more of the company's shares as of December 31, 2021[200].
皓文控股(08019) - 2021 - 年度财报