Financial Services Segment Performance - The financial services segment recorded zero revenue and an expected credit loss of approximately HKD 147.8 million, accounting for about 20.72% of the total assets as of March 31, 2023[3]. - The outstanding balance of loans and other receivables in the financial services business was approximately HKD 114 million, with an expected total credit loss of HKD 113 million for the year[5]. - The financial services segment remains suspended due to the adverse financial conditions of various industries exacerbated by the COVID-19 pandemic[5]. - The company has not established a specific timeline for the resumption of the financial services segment but will monitor industry conditions and macroeconomic environments closely[5]. Business Models and Operations - The business model prior to suspension included two main modes: currency lending and P2P business, primarily operated by a wholly-owned subsidiary[6]. - The currency lending model focused on providing loans to corporate clients for operational and trading activities, typically secured by third-party guarantees[7]. - The P2P business model was gradually phased out due to deteriorating quality in similar services offered by other providers and increased regulatory scrutiny[11]. - The loan agreements under the currency lending model typically had a term of about 12 months, while P2P loans ranged from 90 to 180 days[12]. - The company emphasizes compliance with applicable Chinese laws and regulations during the operation of the P2P business model[11]. Credit Risk Management - The credit risk assessment policy requires all clients in the financial services segment to undergo a thorough evaluation and background check[14]. - As of March 31, 2023, the group has 19 debtors across various industries, with outstanding loans totaling approximately HKD 0.1 million to HKD 21 million, and applicable interest rates ranging from 7% to 9%[23]. - The top five debtors account for approximately 81% of the total outstanding loans[23]. - The group recorded a cumulative expected credit loss provision of approximately HKD 113 million for the financial services segment, fully provisioning for loans under the P2P business model[27]. Loan Monitoring and Recovery - The financial department is responsible for monitoring the loan portfolio and individual loan recoverability, including assessing the actual use of loans and the financial condition of borrowers[20]. - The group has established internal monitoring measures for loan recovery processes and will take appropriate follow-up actions if any potential difficulties in repayment are identified[19]. - In the event of overdue loans, management will consider appropriate follow-up actions, including legal proceedings against borrowers and guarantors if necessary[22]. - The expected credit loss model is based on a "three-stage model" as per Hong Kong Financial Reporting Standard 9, assessing credit quality changes and estimating economic losses[24]. - The group will initiate legal proceedings against borrowers and/or guarantors for loans under the P2P business model that have been overdue for some time[27]. - The financial department will issue reminders and collection letters for all overdue loans, and may escalate to legal action if necessary[22]. - The group will disclose further updates on legal proceedings and recovery of outstanding receivables as per applicable laws and regulations[27].
大地国际集团(08130) - 2024 - 年度业绩