Financial Performance - For the year ended December 31, 2022, the group's revenue was approximately RMB 480 million, an increase of about 9.9% compared to approximately RMB 437 million for the year ended December 31, 2021[8]. - The group faced challenges due to COVID-19 lockdown measures in Shanghai, leading to a temporary halt in business operations and a decrease in profit margins[7]. - The company recorded a pre-tax loss of approximately RMB 99 million during the reporting period, compared to a pre-tax profit of approximately RMB 12 million in the same period last year[76]. - The operating profit, defined as the difference between revenue and financing costs, was approximately RMB 332 million, a decrease of about RMB 10 million compared to the previous year[76]. - The company recognized a tax credit of approximately RMB 58 million during the reporting period, compared to RMB 11 million in the same period last year[77]. - The total amount of deferred tax assets as of the end of 2022 was RMB 55,452,975, an increase from RMB 49,588,162 in 2021[77]. - The company did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[78]. Revenue Sources - Interest income from sale-and-leaseback arrangements and financing leasing consulting business amounted to RMB 253 million and RMB 139 million, accounting for approximately 52.7% and 29.0% of total revenue, respectively[8]. - The group acknowledged an increase in expected credit losses due to adverse impacts on post-loan management[7]. - The company will continue to focus on providing financing solutions for SMEs and individuals through leasing services, with good progress made in consulting services[10]. - A strategic partnership with several well-known financial institutions has been established to improve financing capabilities[10]. - The company's factoring business primarily serves SMEs that generally do not receive sufficient services from commercial banks[25]. - The company provides financing and accounts receivable management services in exchange for interest income and the transfer of receivables[25]. Risk Management - The group implemented stricter risk monitoring measures and made provisions for lease receivables and factoring receivables to mitigate future credit risks[8]. - The company continues to enhance risk management capabilities through the separation of departmental responsibilities and the implementation of strict risk management policies[44]. - The company is focused on maintaining a strong risk management culture through employee training and monitoring customer portfolios using electronic leasing systems and GPS[44]. - The company assesses credit risk by comparing the likelihood of default at the reporting date with that at the initial recognition date[43]. - The company employs an expected credit loss model based on IFRS 9, assessing credit risk across three stages, with provisions reflecting historical loss experience and forward-looking information[58]. - The expected credit loss provision for financing lease receivables increased to 62.4% in 2022 from 39.4% in 2021, while the provision for receivables from sale and leaseback arrangements rose to 7.1% from 2.4%[70]. Corporate Governance - The management emphasized the importance of corporate governance and compliance for sustainable development, conducting extensive internal reviews to identify inefficiencies[8]. - The board includes independent non-executive directors who provide independent judgment and strategic advice[112][108]. - The company has established a robust governance structure with various committees to ensure effective oversight[112]. - The management team is committed to maintaining high standards of corporate governance and transparency[112]. - The company has adopted the corporate governance code as its own, ensuring compliance with the GEM listing rules during the reporting period, except for a deviation noted in the role of the chairman and CEO[178]. Economic Environment - China's GDP reached RMB 121.02 trillion in 2022, reflecting a growth of 3.0% year-on-year[7]. - Since December 2022, China has relaxed COVID-19 restrictions, leading to an overall improvement in the economy as of January 2023[10]. - The increase in expected credit loss provisions was primarily due to stricter risk monitoring measures implemented during the COVID-19 lockdowns in Shanghai, which affected the company's ability to manage receivables[70]. Employee and Management - Employee costs decreased by approximately 23%, from RMB 11.5 million to RMB 8.8 million, due to business adjustments and staff reductions[50]. - The company expresses gratitude to all employees and business partners for their contributions and support during the year[12]. - The management team includes experienced professionals with over 21 years in the financial industry and over 18 years in accounting and finance[116][109]. - The company has a strong focus on risk management, with the COO having over 16 years of experience in this area[104]. Cash Flow and Financial Position - As of December 31, 2022, the company's cash and cash equivalents amounted to RMB 57.6 million, an increase from RMB 27.6 million as of December 31, 2021[81]. - The net cash used in operating activities for the reporting period was approximately RMB 12.9 million, a significant improvement from RMB 33.1 million in the same period last year[82]. - The financing activities generated a net cash inflow of approximately RMB 46.5 million, compared to RMB 40.5 million in the previous year, indicating a positive trend in financing[82]. - The company's debt-to-equity ratio increased to 58.3% as of December 31, 2022, up from 38.1% at the end of the previous year, reflecting a higher leverage position[84]. Shareholder Information - The company has not declared or recommended any final dividends for the reporting period, reflecting a conservative approach to capital distribution[97]. - The board of directors consists of a mix of executive and non-executive members, with a significant shareholding held by Mr. Zhou Dawi, who controls 62.5% of the company's shares through View Art Investment Limited[138]. - View Art Investment Limited holds a significant stake of 600,000,000 shares, representing approximately 62.5% of the company's issued share capital[141]. - The beneficial owner of View Art Investment Limited is Mr. Zhou Dawei, who is considered to have an interest in all shares held by the company[142]. Compliance and Legal - The group has complied with all relevant laws and regulations in China and Hong Kong during the reporting period[168]. - The group has established a policy to ensure compliance with the GEM Listing Rules regarding public float[164]. - The company has confirmed that all directors and relevant employees have complied with the securities trading code during the reporting period[174].
METROPOLIS CAP(08621) - 2022 - 年度财报