Company Overview - Metropolis Capital Holdings Limited reported its annual financial performance for the year ending December 31, 2023[2]. - The company has been providing customized financing leasing, leasing consulting, and factoring services for ten years[14]. - The company was successfully listed on the GEM of the Hong Kong Stock Exchange on December 12, 2018[14]. - The company is headquartered in Shanghai and has a primary business location in Hong Kong[12]. - The company has established relationships with major banks, including Agricultural Bank of China and China Merchants Bank[13]. Financial Performance - In 2023, the company's revenue was approximately RMB 488 million, an increase of about 1.6% compared to RMB 480 million for the year ended December 31, 2022[16]. - Revenue from financing leasing consulting services was approximately RMB 286 million, accounting for about 58.7% of total revenue during the reporting period[16]. - Interest income from sale-leaseback arrangements and factoring agreements was approximately RMB 120 million and RMB 77 million, representing about 24.7% and 15.7% of total revenue, respectively[16]. - The company's overall profit margin has decreased due to increased employee costs and operating expenses amid a competitive domestic market[15]. - The group reported a total equity reserve available for distribution to equity holders of approximately RMB 186.9 million as of December 31, 2023[156]. Operational Strategy - The company plans to continue focusing on financing leasing to meet the needs of SMEs and individuals, while also expanding intermediary services to reduce costs[19]. - Management is considering diversifying the company's existing business and broadening its revenue sources, including establishing a new trading entity in China[19]. - The company has made significant progress in its financing leasing consulting services, which management believes is a viable business strategy for further development[19]. - The company primarily serves small and medium-sized enterprises and individuals in the automotive financing leasing sector, with most clients using leased vehicles for business operations[56]. Risk Management - The company is actively reviewing its credit risk control system and taking remedial measures for overdue accounts[16]. - The company has implemented strict risk management policies and measures to enhance its risk management culture across the organization[53]. - The financing leasing business is monitored through an electronic leasing system and GPS online system to detect potential defaults by clients[53]. - The company continues to maintain a selective client approach based on a thorough understanding of the industry to manage credit risk effectively[53]. Credit Loss Provisions - The company has adopted the expected credit loss model under IFRS 9 to determine loss provisions, with assessments updated to reflect changes in credit risk[74]. - The expected credit loss provision as of December 31, 2023, decreased by approximately 34.6% to about RMB 36.3 million from RMB 55.5 million as of December 31, 2022[87]. - The provision for expected credit losses for financing leasing receivables decreased by 64.6% to RMB 15.77 million in 2023 from RMB 44.56 million in 2022[87]. - The provision for expected credit losses for factoring receivables increased significantly by 1,905.4% to RMB 12.89 million in 2023 from RMB 0.64 million in 2022[87]. Employee Costs - Employee costs rose to approximately RMB 12.1 million, a 37.4% increase from approximately RMB 8.8 million in the same period last year, attributed to a significant increase in the number of employees[63]. - The total employee costs for the reporting period were approximately RMB 12.1 million, an increase from RMB 8.8 million in the previous year[110]. Corporate Governance - The board of directors confirmed that the information in the report is accurate and complete, with no misleading elements[5]. - The company is committed to transparency and corporate governance as outlined in its annual report[10]. - The board of directors consists of both executive and independent non-executive members, ensuring diverse oversight[12]. - The board of directors consists of six members, with Mr. Zhou Dawi holding a controlling interest of 600,000,000 shares, representing 62.5% of the total shares[166]. Compliance and Regulations - The company has complied with all relevant laws and regulations in China and Hong Kong during the reporting period[199]. - The independent auditor for the reporting period was Zhongshen Zhonghuan (HK) CPA Limited, with no changes in auditors over the past three years[197]. - The company has maintained compliance with the GEM listing rules regarding public float as of the report date[195]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of BB% and aiming to reach a target of $CC million[128]. - New product launches are expected to contribute to revenue, with an estimated impact of $DD million in the upcoming quarter[128]. - Market expansion plans include entering new regions, with a target to increase market share by FF% in the next year[128]. - The company is considering strategic acquisitions to enhance its portfolio, with potential targets identified in the market[128].
METROPOLIS CAP(08621) - 2023 - 年度业绩