Loss Provisions - The group recognized a loss provision for lease receivables of approximately RMB 4.9 million, significantly higher than the RMB 1.4 million loss provision in the same period last year [3]. - The group confirmed a loss provision for factoring receivables of approximately RMB 1.1 million, whereas there was no loss provision for factoring receivables in the same period last year [3]. - The expected credit loss provision increased to RMB 49,316,675, reflecting a rise of approximately 6.4% from RMB 46,359,211 in the previous year [16]. - The provision for expected credit loss for sale and leaseback receivables increased by 239.2%, reaching RMB 3,257,612 compared to RMB 960,449 in 2020 [16]. - The provision for expected credit loss for factoring receivables was RMB 1,135,119, which was not applicable in the previous year [16]. Credit Risk Assessment - The loss provisions are based on the expected credit loss model as per International Financial Reporting Standards (IFRS) 9, with a general approach used to measure expected credit losses [6]. - The group typically measures loss provisions equal to 12-month expected credit losses unless there is a significant increase in credit risk since initial recognition [9]. - The assessment of credit risk considers various factors, including external market indicators and the financial performance of debtors [10]. - The assessment of expected credit loss is based on past data and adjusted for forward-looking information, including macroeconomic data [12]. - The company considers external factors such as changes in the macroeconomic environment and the financial condition of counterparties when estimating expected credit losses [14]. Financial Performance - As of December 31, 2021, the total value of receivables was approximately RMB 280,531,997, an increase of about 13.5% from RMB 247,193,733 on December 31, 2020 [16]. - The weighted average expected credit loss for finance lease receivables rose to 39.4% in 2021 from 29.7% in 2020 [18]. - The increase in expected credit loss provision was primarily due to stricter risk control measures implemented in response to the COVID-19 pandemic [18]. Governance and Compliance - The board believes that appropriate loss provisions have been made in accordance with International Financial Reporting Standards [19]. - The company has engaged auditors to assess expected credit loss provisions related to receivables, including evaluating management's judgments on increased credit risk and the reasonableness of expected credit loss models [20]. - The board of directors confirms that all information in the announcement is accurate and complete, with no misleading or fraudulent elements [24]. Disclosure - The announcement serves as a supplement to the 2021 annual report and the full-year performance announcement, indicating a focus on comprehensive financial disclosure [22]. - The company regularly reviews the grouping method for expected credit loss calculations to ensure similar credit risk characteristics among components [19].
METROPOLIS CAP(08621) - 2021 Q4 - 年度财报