Financial Performance - The Group recorded a turnover of approximately RMB 7,960,000 for the three months ended 31 March 2023, representing a decrease of approximately 23.2% compared to RMB 10,365,000 for the same period in 2022[9]. - Profit attributable to owners of the Company for the three months ended 31 March 2023 amounted to approximately RMB 2,317,000, compared to a loss of approximately RMB 473,000 in 2022[9]. - Basic Earnings per Share for the three months ended 31 March 2023 was RMB 6.70 cents, a recovery from a basic loss of RMB 1.37 cents in 2022[9]. - Total comprehensive income for the period was RMB 2,322,000, compared to a loss of RMB 4,795,000 in the same period of 2022[11]. - The Group's profit before income tax was RMB 3,288,000, compared to a loss of RMB 427,000 in the previous year, indicating a turnaround in financial performance[10]. - Revenue for the three months ended March 31, 2023, was RMB 7,960,000, a decrease of 22.5% compared to RMB 10,288,000 for the same period in 2022[40]. - Interest income for the three months ended March 31, 2023, was RMB 0, down from RMB 77,000 in the same period in 2022[40]. - Profit attributable to the owners of the Company amounted to approximately RMB 2,317,000, compared to a loss of approximately RMB 473,000 in 2022[89]. - Total comprehensive income for the period was RMB 2,322,000, reflecting an increase from a total comprehensive loss of RMB 4,840,000 in the previous year[63]. Cost Management - Employee benefit expenses decreased to RMB 1,340,000 from RMB 1,816,000 in the previous year, indicating cost management efforts[10]. - Other administrative expenses significantly reduced to RMB 3,332,000 from RMB 8,967,000, reflecting improved operational efficiency[10]. - Finance costs decreased to RMB 1,000 from RMB 11,000, showing a reduction in financial burden[10]. - Administrative and employee benefit expenses decreased by approximately 56.7% to approximately RMB 4.67 million, attributed to the decrease in platform services income during the period[86]. Corporate Governance and Compliance - The Group's unaudited condensed consolidated financial statements have been prepared in accordance with the GEM Listing Rules and HKFRSs, ensuring compliance with applicable disclosure requirements[19]. - The accounting policies used in the preparation of the Group's unaudited condensed consolidated results are consistent with those adopted in the audited financial statements for the year ended December 31, 2022[20]. - The Group has applied amendments to HKFRSs that are mandatorily effective for the current year, which had no material impact on the Group's financial performance and positions[27]. - The Group has not early applied new and amendments to HKFRSs that have been issued but are not yet effective, including HKFRS 17 on Insurance Contracts[28]. - The Group's financial performance is governed by the accounting standards set by the Hong Kong Institute of Certified Public Accountants[19]. - The Group's financial reporting policies are aligned with the latest amendments to HKFRSs, ensuring transparency and accuracy in financial disclosures[30]. Share Trading and Corporate Actions - The trading of the Company's shares on the Hong Kong Stock Exchange has been suspended since 29 March 2021, and remains suspended as of the date of this report[13]. - The Company did not declare an interim dividend for the three months ended March 31, 2023, consistent with the previous year[54]. - A capital reorganization was completed on March 22, 2023, consolidating every 50 ordinary shares into one consolidated share[60]. - The Company has been actively addressing the Resumption Guidance from the Stock Exchange, with quarterly updates on its status announced on multiple dates from June 2021 to April 2023[114][116]. - The Company submitted a resumption proposal to the Listing Division on March 13, 2022, aiming to address the Resumption Guidance and demonstrate progress in resuming trading[124]. - The Company received a delisting decision from the Stock Exchange on May 6, 2022, due to failure to meet all resumption guidance by March 28, 2022[127]. - The Board welcomed the Listing Review Committee's decision, allowing the Company to resume trading of its shares on the Stock Exchange[177]. Internal Control and Risk Management - The internal control system was improved through the supervision of remedial measures for identified loopholes during inspections[74]. - The group has implemented a risk control module in its financial management service platform to prevent duplicate borrowing and identify fraud[64]. - The internal audit of the group has not been undertaken effectively, raising questions about the company's internal control systems[140]. - The internal control review conducted by GRC Chamber Limited identified weaknesses and provided recommendations for improvement[160]. - The company has rectified deficiencies in its internal control system as identified in the internal control review[161]. - The enhanced internal control measures are deemed adequate to address key findings from the internal control review report[161]. Legal and Regulatory Matters - An Independent Investigation Committee was formed on December 20, 2021, to investigate the custody of certain individuals related to suspected illegal activities, with Beijing Dentons Law Offices engaged for this purpose[115][116]. - Legal proceedings have been initiated against Mr. Zheng and Ms. Guo for breach of fiduciary duty and failure to act in the best interest of the company[146]. - The probability of recovering the Seized Assets is extremely low according to the October 2021 Judgement and applicable PRC law[118]. - The Remedial Actions Committee has recommended the board to adopt findings from the investigation regarding ineffective internal control and risk management systems[141]. Business Operations and Strategy - The Group's main business activities include property development investment, operating a financial services platform, and providing loan services and financial advisory services in China[16]. - The financial service platform has been operational since 2015, initially focusing on the real estate market and expanding to include banking and deposit management services by 2018[64]. - The company tailored different types of financial products to meet the individual circumstances and funding needs of its customers[70]. - The company is focused on developing pipeline projects and building internal strengths amid the cyclical downturn of the industry and the impact of COVID-19[75]. - The group is actively engaged in consolidating and expanding its internet financial business segments, particularly in response to the tightening regulatory environment in China since 2019[65]. Shareholder Information - As of March 31, 2023, the interests of Directors and the chief executive in the Company's shares and debentures were documented as required by the Securities and Futures Ordinance[188]. - As of March 31, 2023, Ming Cheng Investments Limited holds 7,354,791 shares, representing approximately 21.24% of the company's total shares[199]. - Mr. Zheng Weijing has a total interest of 8,167,395 shares, which includes 812,604 shares directly held and 7,354,791 shares held through Ming Cheng Investments Limited, equating to approximately 23.59%[199]. - Sino-Africa Resources Holdings Limited owns 5,113,520 shares, accounting for approximately 14.77% of the total shares[199]. - Peace Bloom Limited holds 2,908,581 shares, representing about 8.40% of the company's total shares[199]. - Upsoar Limited has 3,110,373 shares, which is approximately 8.98% of the total shares[199]. - Mr. Huang Xiguang has an interest in 5,113,520 shares through Sino-Africa Resources Holdings Limited, equating to approximately 14.77%[199]. - Mr. Hu Jinxi holds 3,352,581 shares, including 444,000 shares held by his spouse, representing approximately 9.68% of the total shares[199].
汇联金融服务(08030) - 2023 Q1 - 季度财报