2024-03-27-港交所-新利软件_2023年报_187页_2mb

GEM of the Stock Exchange of Hong Kong Limited (HKEX) Summary

Core Content

This document outlines the corporate structure, financial performance, and strategic outlook of Sing Lee Software (Group) Limited (the "Company"), a listed company on the GEM (The Stock Exchange of Hong Kong Limited). It is intended for shareholders, investors, and regulatory authorities, and serves as a comprehensive report on the company's operations, financial status, and risk management practices.

Main Points

1. Company Overview

• The company is listed on GEM, a market for small and mid-sized companies, which inherently carry higher investment risks.
• The company is primarily engaged in information and network technologies and services for the financial industry in the PRC.
• The company's registered office is in Bermuda, while its main office and business location in Hong Kong is in Tsim Sha Tsui, and in the PRC is located in Hangzhou, Xihu District.

2. Directors and Senior Management

• Executive Directors include:
  • Lin Xue Xin (Chairman)
  • Hung Ying (Vice Chairman)
  • Zang Jingjing, Li Dong, and Cai Jin (appointed on 1 April 2023)
  • Cui Jian (resigned on 1 April 2023)
• Independent Non-Executive Directors:
  • Pao Ping Wing
  • Chan Tsang Mo (appointed on 1 April 2023)
  • Thomas Tam and Lo King Man (resigned on 1 April 2023 and 31 December 2023 respectively)
• Company Secretary and Compliance Officer: Tong Tsz Kwan
• Authorised Representatives: Lin Xue Xin and Tong Tsz Kwan

3. Financial Performance

• Total Revenue for the year ended 31 December 2023: RMB70,377,000, down 17.2% from RMB84,949,000 in 2022.
• Revenue Breakdown:
  • Sales of software products: RMB2,866,000 (down 34.8%)
  • Sales of hardware products: RMB422,000 (down 85.8%)
  • Provision of technical support services: RMB67,089,000 (down 13.5%)
• Total Loss for 2023: RMB8,264,000, a 55.0% decrease from RMB18,381,000 in 2022.
• Gross Profit Margin: Increased to 20.7% (up 5.7%) from 15.0% in 2022.
• Cost of Sales: Decreased by 22.8% to RMB55,803,000.
• Administrative Expenses: Decreased by 27.3% to RMB15,568,000.
• Distribution and Selling Expenses: Decreased by 8.6% to RMB4,412,000.
• Research and Development Expenses: Stable at RMB6,631,000.
• Cash and Cash Equivalents: RMB35,107,000 (down 36.0% from RMB54,896,000 in 2022).
• Current Ratio: 4.8 times (up from 2.7 times in 2022).
• Gearing Ratio: 55.7% (down from 58.8% in 2022).
• Net Cash Flow: Outflow of RMB19,789,000 in 2023 (vs. inflow of RMB9,920,000 in 2022).

4. Borrowings and Financing

• Total Borrowings as of 31 December 2023: RMB26,919,000 (down 37.1% from RMB42,785,000 in 2022).
• Borrowings Breakdown:
  • Unsecured loans from a related party: RMB26,419,000
  • Secured bank borrowings: RMB0,000
  • Unsecured bank borrowings: RMB500,000
• Loan Facilities: Two revolving loan facilities with a total credit amount of RMB15,000,000, maturing on 6 July 2025 and 22 July 2025.
• Unused Facility: Will be used for working capital.

5. Segment Information

• Technical support services remain the main revenue source, accounting for 95.3% of total revenue in 2023 (vs. 91.3% in 2022).
• Segment Loss: RMB4,819,000 (down from RMB8,378,000 in 2022).

6. Capital Structure

• Share Options Lapsed:
  • 2023: 6,507,000
  • 2022: 4,259,000
• No other material changes in capital structure during 2023.

7. Risk Management

• The Group has implemented sufficient risk management procedures to address both internal and external risks.
• Market Risk: Related to changes in foreign exchange, interest, and equity prices. The Group monitors exposure and may consider hedging.
• Exchange Rate Risk: The Group's assets and liabilities are denominated in RMB, HKD, and USD. The Group does not currently have a foreign currency hedging policy.
• Contingent Liabilities: None material as of 31 December 2023.

8. Environmental Policies

• The Group promotes green practices such as:
  • Efficient water usage
  • Double-sided printing and copying
  • Recycling bins and use of recycled paper
  • Energy-saving measures (e.g., turning off idle equipment)
• The Group uses office equipment with Energy Labels issued by the Electrical and Mechanical Services Department.
• The Group aims to adhere to the 3Rs principle: Reduce, Recycle, Reuse to enhance environmental sustainability.

9. Compliance

• The Group complies with relevant laws and regulations in all operating regions.
• No incidents of non-compliance were reported during the year.

Key Information

• GEM Stock Code: 8076
• Website: www.singlee.com.cn
• Auditor: Deloitte Touhe Tohmatsu (Registered Public Interest Entity Auditors)
• Principal Bankers:
  • Industrial and Commercial Bank of China (Asia) Limited
  • Bank of China (Hong Kong) Limited
  • Bank of China, Hangzhou Branch
  • Industrial and Commercial Bank of China, Zhejiang Branch
• Corporate Information:
  • Head Office in Hong Kong: Room 1610, 16/F, Tower II, Silvercord, 30 Canton Road, Tsim Sha Tsui
  • Head Office in the PRC: 16th Floor, Building 9, West City Best Space, No. 158, Zixuan Road, Sandun, Xihu District, Hangzhou

Future Outlook

• The Group plans to deepen integration of payment products in user scenarios and enhance product features.
• It expects to further improve financial performance through cost control and market expansion.
• The Group is committed to environmental sustainability and 3Rs principles.
• The Group has a robust business model and is confident in achieving promising developments in 2024.