Financial Performance - For the year ended December 31, 2021, the group's revenue was approximately RMB 437 million, an increase of about 9.4% compared to RMB 399 million for the year ended December 31, 2020[9]. - The company's revenue increased from approximately RMB 399 million to approximately RMB 437 million, representing a growth of about 9.4%[44]. - The financing leasing consulting business achieved revenue of RMB 123 million, accounting for approximately 28.2% of total revenue during the reporting period[9]. - Financing leasing consulting services contributed approximately 28.2% of total revenue during the reporting period[44]. - The group recorded a pre-tax profit of approximately RMB 1.2 million during the reporting period, a substantial decrease from RMB 8.8 million in the same period last year, primarily due to increased operating expenses and loss provisions[55]. Asset Quality and Risk Management - The group's asset quality related to automotive financing leasing receivables continued to improve, with management closely monitoring asset performance and taking appropriate measures when necessary[9]. - The company has implemented systematic operational workflows for its automotive financing leasing and factoring businesses to manage risks effectively[33]. - The company has adopted various risk management measures, including credit assessments and monitoring customer portfolios through electronic leasing systems[42]. - The company’s risk management strategy includes a thorough understanding of the industry and maintaining a selective client approach[42]. - The company faced various risks including credit risk, liquidity risk, interest rate risk, operational risk, and legal and compliance risk, and has developed a risk management system tailored to its business operations[189]. Financing and Leasing Operations - The company primarily provides customized automotive financing leasing, with a significant portion of transactions being sale-and-leaseback arrangements during the reporting period[15]. - In direct financing leases, the company typically offers financing of approximately 30.0% to 100% of the total vehicle value, including purchase price and insurance[19]. - In sale-and-leaseback arrangements, the financing provided is generally around 23.0% to 100% of the total vehicle value[22]. - The average term for direct financing leases ranges from 1 to 5 years, while sale-and-leaseback arrangements average between 1 to 4 years[28]. - Interest rates for direct financing leases during the reporting period were approximately 10.34% to 23.09%, compared to 7.87% to 28.01% in 2020[28]. Business Strategy and Development - In 2022, the financing leasing industry faces increasing regulatory costs and restrictions on business activities due to COVID-19 variants, requiring the group to enhance competitiveness and innovate[11]. - The group plans to continue focusing on meeting the financing needs of small and medium-sized enterprises and individuals through financing leasing[11]. - Management is considering establishing a new subsidiary for wine trading and catering business in China to diversify the group's existing operations and broaden revenue sources[12]. - The chairman and CEO has approximately 6 years of experience in the wine trading and catering business, which the group believes can be leveraged to explore opportunities in this sector[12]. Financial Position and Equity - As of December 31, 2021, cash and cash equivalents amounted to approximately RMB 27.6 million, compared to RMB 16.7 million at the end of 2020[59]. - As of December 31, 2021, the balance of leasing receivables (before loss provisions) was approximately RMB 248.1 million, an increase of about RMB 6.7 million or 2.8% from RMB 241.4 million at the end of 2020[52]. - The group recognized a loss provision for leasing receivables of approximately RMB 4.9 million during the reporting period, significantly higher than the RMB 1.4 million recognized in the same period last year[53]. - The company’s debt-to-equity ratio was approximately 38.1%, an increase from 24.2% at the end of 2020[64]. - Total equity as of December 31, 2021, was RMB 207,221,602, compared to RMB 205,828,707 in 2020[64]. Corporate Governance and Compliance - The company has adopted the corporate governance code based on the GEM listing rules and has complied with applicable provisions during the reporting period[151]. - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse skill set[153]. - The company has established appropriate policies to ensure good corporate governance and transparency[151]. - The audit committee held five meetings during the reporting period to review significant financial reports and compliance procedures[172]. - The company has established an internal audit function to conduct annual financial reviews and assess risk management and internal control systems[192]. Employee and Operational Costs - Employee costs for the reporting period were approximately RMB 11.5 million, a decrease of about 27.4% from RMB 15.8 million in the same period last year, mainly due to a reduction in the number of sales and business development personnel[48]. - Other operating expenses increased by approximately 60.3% to RMB 17.1 million from RMB 10.7 million in the same period last year, primarily due to an increase in financing leasing consulting service costs of approximately RMB 7.2 million[49]. - Financing costs rose by approximately 84.2% to RMB 9.5 million from RMB 5.2 million in the same period last year, mainly due to a significant increase in bank and other loan balances to approximately RMB 78.9 million[50]. Shareholder Information - The total number of issued shares remained unchanged at 960,000,000 shares during the reporting period[109]. - Mr. Zhou Dawi holds 600,000,000 shares, representing approximately 62.5% of the company's total issued share capital[118]. - View Art Investment Limited, wholly owned by Mr. Zhou Dawi, also holds 600,000,000 shares, equating to approximately 62.5% of the company[120]. - The board has not recommended the payment of a final dividend for the year ended December 31, 2021[106]. - The company has adopted a dividend policy that considers various factors, including the discretion of the board and applicable laws[106].
METROPOLIS CAP(08621) - 2021 - 年度财报